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Financial Management Service 

Mission Statement 

To provide central payment services to Federal Program Agencies (FPAs), operate the 

Federal Government’s collections and deposit systems, provide government-wide 

accounting and reporting services, and manage the collection of delinquent debt owed to 

the Government. 

Program Summary by Budget Activity 

Dollars in Thousands 

Appropriation FY 2008 FY 2009 FY 2010

Enacted Enacted Request $ Change % Change

 Payments $210,152 $147,717 $150,395 $2,678 1.8%

 Collections $19,804 $21,521 $21,911 $390 1.8%

 Government-wide Accounting and Reporting $68,642 $70,547 $71,826 $1,279 1.8%

Total Appropriated Resources $298,598 $239,785 $244,132 $4,347 1.8%

Total FTE 1,692 1,500 1,500 0 0.0%

Note: The FY 2008 Enacted Column includes $64 Million in Economic Stimulus Funds. 

The Debt Collection program is funded through reimbursable revenues. 

FY 2010 Priorities 

• Provide timely, accurate, and efficient disbursement of Federal payments. 

• Provide timely, accurate and efficient collection of Federal Government receipts. 

• Maximize collection of delinquent debt owed to the Government. 

• Produce timely and accurate financial information that contributes to the improved 

quality of financial decision making. 
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Table of Contents 

Financial Management Service........................................................................................ 1

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

1A – Description of Bureau Vision and Priorities.......................................................... 3 

1B – Program History and Future Outlook..................................................................... 4 

Section 2 – Budget Adjustments and Appropriation Language................................... 7

2.1 – Budget Adjustments Table..................................................................................... 7 

2A – Budget Increases and Decreases Description ........................................................ 7 

2.2 – Operating Levels Table.......................................................................................... 8 

2.3 – Appropriations Detail Table .................................................................................. 9 

2B – Appropriations Language and Explanation of Changes......................................... 9 

Exhibit 2C – Permanent, Indefinite Appropriations ....................................................... 9 

2C – Legislative Proposals ........................................................................................... 10 

Section 3 – Budget and Performance Plan ................................................................... 12

3.1 – Budget by Strategic Outcome .............................................................................. 12 

3.2.1 – Payments Budget and Performance Plan .......................................................... 14 

3.2.2 – Collections Budget and Performance Plan ....................................................... 16 

3.2.3 – Debt Collection Budget and Performance Plan ................................................ 18 

3.2.4 – Government-wide Accounting and Reporting Budget and Performance Plan. 20 

Section 4 – Supporting Materials .................................................................................. 21

4A – Human Capital Strategy Description ................................................................... 21 

4.1 – Summary of IT Resources Table ......................................................................... 23 

4B – Information Technology Strategy ........................................................................ 24 

4.2 – Program Assessment Table.................................................................................. 25 
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 Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

FMS’ vision is: World class delivery of government financial management services. 

The Financial Management Service (FMS) plays a key role in supporting the Department 

of the Treasury’s strategic goal of managing the United States Government’s finances 

effectively by operating as the financial manager and principal fiscal agent for the 

Federal Government. This role includes managing the nation’s finances by collecting 

money due to the United States, making its payments and performing central accounting 

functions. Three FMS programs – payments, collections and cash reporting – are part of 

the Nation’s Financial Critical Infrastructure which requires these activities to be fully 

operational at all times. 

FMS’ Strategic Goals, as reflected in the FY 2010 priorities, are to: 

• Provide timely, accurate, and efficient disbursement of Federal payments. 

• Provide timely, accurate and efficient collection of Federal Government receipts. 

• Maximize collection of delinquent debt owed to the Government. 

• Produce timely and accurate financial information that contributes to the improved 

quality of financial decision making. 

• Be a great place to work. 

FMS provides critical services to millions of United States taxpayers and other 

customers. It embodies Treasury’s leadership strategy to create value for the American 

people, provide responsible and effective stewardship over the Government’s finances, 

and focus on quality service, results and innovation. The breadth and scope of FMS’ 

programs are enormous. The impact of its programs on the economy and the American 

public is significant. FMS’ activities touch millions of American citizens, virtually every 

Federal Program Agency (FPA) and state governments across the country. 

As the Government’s financial manager, FMS oversees a daily cash flow in excess of 

$60 billion, disbursing 85 percent of the Federal Government’s payments. These 

payments include income tax refunds, Social Security benefits, veterans’ benefits and 

other Federal payments to individuals and businesses. FMS also administers the world’s 

largest collection system, collecting over $3.1 trillion in FY 2008. FMS provides cash 

management guidance to FPAs, maintains the Government’s accounting books, and 

compiles and publishes government-wide financial information used to monitor the 

Government’s financial status. Finally, FMS serves as the Government’s central debt 

collection agency for delinquent non-tax debt. 
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1B – Program History and Future Outlook 

The Payments program develops and implements Federal payment policy and 

procedures, issues and distributes payments, promotes the use of electronics in the 

payment process, and assists agencies in converting payments from paper checks to 

Electronic Funds Transfer (EFT). This includes controlling and providing financial 

integrity to the payments process through reconciliation, accounting, and claims 

activities. It also includes special payments such as Federal Emergency Management 

Agency payments. In FY 2008, FMS issued nearly 1 billion non-Defense payments 

worth $1.8 trillion to a wide variety of recipients, such as those who receive Social 

Security benefits, IRS tax refunds and veterans’ benefits. Seventy-nine percent of all 

payments disbursed were issued via direct deposit. In addition, FMS issued an additional 

119 million Economic Stimulus Payments valued at over $96 billion. Over 36 percent of 

the Stimulus Payments were issued by direct deposit. 

Streamlining the payments processes while continually investing in state-of-the-art 

technology is integral in processing payments accurately, timely, and more safely and 

securely for the taxpayer. The Payment Application Modernization (PAM) Project is an 

effort to replace the current mainframe-based software applications that are used to 

disburse approximately 1 billion federal payments annually with a total dollar value of 

$1.5 trillion. Ultimately, PAM will be a single application that will generate check, wire 

transfer, and ACH payments for federal program agencies (FPAs), including Social 

Security, IRS, Veteran’s Affairs, as well as others. 

 In FY 2010, FMS will continue to expand the use of electronic media to deliver Federal 

payments. Electronic media provides a safer, more secure and reliable method of 

payment for recipients. In addition, electronic payments also decrease the number of 

paper checks issued, minimizing costs and inefficiencies associated with the delivery of 

non-electronic benefits. 

The Collections program collects revenues needed to operate the Federal Government 

through the effective management of the Government’s collections infrastructure. In FY 

2008, FMS collected a record $3.2 trillion, of which 80 percent was collected 

electronically, through a network of more than 9,000 financial institutions. Dollar 

revenues collected in FY 2008 exceeded those collected in FY 2007. A major component 

supporting electronic collections is the Electronic Federal Tax Payment System (EFTPS). 

EFTPS is a tax payment system that offers all businesses and individuals the convenience 

of making their Federal tax payments electronically 24 hours a day, seven days a week. 

FMS is in the middle of a comprehensive effort to streamline, modernize and improve the 

processes and systems supporting Treasury’s collections and cash management program. 

This effort, Collections and Cash Management Modernization (CCMM), will improve 

financial performance by enabling FMS and government agencies to more effectively 

manage financial transaction information and improve the efficiency of the collections 

information reporting processes. 
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In FY 2010, FMS will continue to expand the use of electronic collection mechanisms 

using the most advanced and secure collection technologies that are flexible enough to 

accommodate the varying needs and technical sophistication of all taxpayers and FPAs. 

In addition, FMS will work to streamline, modernize and improve the processes and 

systems supporting Treasury’s collections and cash management program. Currently, 

collection agents report collections information to many FPAs and multiple U.S. 

Treasury systems. To collect this information, the FPAs and U.S. Treasury systems 

interface with numerous sources using a variety of formats and interface technologies. 

FMS is developing a system which will provide a single touch point for information 

reporting and retrieval via transaction brokering, data warehousing, and business 

intelligence. The single touch point will enable the standardization and consolidation of 

collections information and eliminate redundancies in the Federal Government’s 

collections reporting processes. FMS will also continue to focus on security oversight 

efforts at financial agent processing facilities and banking institutions as a way to 

proactively identify security control weaknesses and detect and deter fraud, waste, theft 

and unauthorized access associated with the collection of Government remittances and 

protection of sensitive information. 

The Debt Collection program recovers delinquent Government and child support debt by 

providing centralized debt collection, oversight, and operational services to FPAs and 

states as required by the Debt Collection Improvement Act (DCIA) of 1996 and related 

legislation. 

In FY 2008, FMS collected a record $5.9 billion in delinquent debt. This includes $1.5 

billion in Economic Stimulus payment offsets which is comprised of $840 million for 

child support debts and $664 million for delinquent non-tax and state tax debt. Debt 

referrals from creditor agencies were at 100 percent of eligible debt at the end of FY 

2008. 

As a result of FMS’ continued program improvements, total collections since the 

enactment of the DCIA in 1996 are over $37.4 billion through FY 2008. In FY 2010, 

FMS will continue to enhance FedDebt, a comprehensive system that integrated FMS’ 

previous collection tools: Cross-Servicing and the Treasury Offset Program (TOP). This 

reduces redundancies, improves data integrity, and provides agencies direct online 

access. FMS will also continue to roll out Debt Check, an online program used to help 

agencies bar delinquent debtors from obtaining new loans or loan guarantees. In 

addition, the Centers for Medicare and Medicaid Services (CMS) offset and the Railroad 

Retirement Board levy program began in FY 2009. The Postal Service is also scheduled 

to begin offsetting and levying vendor payments in late 2009. 

The Government-wide Accounting and Reporting program maintains the Federal 

Government’s books and accounts for its monetary assets and liabilities by operating and 

overseeing the Government’s central accounting and reporting system. For FY 2008, 

FMS released the Financial Report of the United States Government (FR) 75 days after 

the fiscal year-end for the fifth consecutive year. The FR presents a picture of 

government-wide finances that complements the traditional Federal Government budget 
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information. To support the accelerated release of the FR, Treasury continues to release 

the Monthly Treasury Statements (the monthly public source of budgetary results) on the 

eighth workday of each month. With this release schedule, agency financial managers 

are better able to verify and use the data in their own reports. 

In FY 2010, FMS will continue to revamp and implement government-wide accounting 

processes to provide more useful and reliable financial information on a regular basis. 

FMS has two major initiatives which will modernize long standing Federal accounting 

processes and provide agencies with methodologies and tools to improve the accuracy 

and consistency of their financial data. 

FMS is building and implementing a system to improve the exchange of financial 

information among FMS, FPAs, OMB and the banking community. Once completed, 

this program, the Government-wide Accounting (GWA) Modernization Program will 

replace current government-wide accounting functions and processes that are both 

internal and external to FMS. In FY 2009 and beyond, FMS will continue working with 

FPAs to implement the new GWA system for the reporting of payments, collections and 

intra-governmental transactions. The system will improve the reliability, usefulness, and 

timeliness of the Government’s financial information, provide FPAs and other users with 

better access to that information, and eliminate duplicate reporting and reconciliation 

burdens on agencies. In addition, FPAs will have better tools for reporting financial 

information and access to daily account statements for monitoring the status of their 

financial information at the Treasury Department. This initiative will result in significant 

savings throughout Government as agencies will no longer have to prepare month-end 

reports classifying all of their disbursement and collection transactions or perform 

reconciliations on statements of differences associated with month-end reporting. 

In FY 2010, FMS will continue moving forward on the FIRST initiative. This initiative 

integrates budget and financial reports from FPAs. FIRST will improve the consistency 

of the budgetary and proprietary accounting data recorded in agency financial statements 

and reported to FMS through its trial balance. FIRST is designed to provide authoritative 

information, contained in Treasury’s central accounting system, to the agencies, to 

facilitate the reconciliation process for specific intra-governmental transactions. 
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Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands 

Financial Management Service FTE Amount

FY 2009 Enacted 1,500 239,785

Changes to Base: 

Maintaining Current Levels (MCLs): - $4,347

Across the Board Program Reduction - (1,174)

Non-Pay Inflation Adjustment - 808

Pay Annualization - 1,558

Pay Inflation Adjustment - 3,155

Subtotal FY 2010 Changes to Base - $4,347

Total FY 2010 Base 1,500 244,132

Total FY 2010 President's Budget Request 1,500 244,132

2A – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ...........................................+$4,347,000 / +0 FTE 

Across the Board Program Reduction -$1,174,000 / +0 FTE 

FMS continues to focus on improving the efficiency of its operations through a 

disciplined process of productivity improvement. 

Non-Pay Inflation Adjustment +$808,000 / +0 FTE 

Funds are requested for non-related items such as contracts, travel, supplies, equipment 

and GSA rent. 

Pay Annualization +$1,558,000 / +0 FTE 

Funds are requested for the FY 2010 cost of the January 2009 pay raise. 

Pay Inflation Adjustment +$3,155,000 / +0 FTE 

Funds are requested for the January 2010 pay raise. 
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2.2 – Operating Levels Table 

Bureau: Financial Management 

Service

FY 2008 

Enacted

FY 2009 

President's 

Budget

Congressio

nal Action

Including 

Rescission

FY 2009 

Enacted 

Level

Proposed 

Reprogram

mings

FY 2009 

Proposed 

Operating 

Level

FY 2010 

Requested 

Level

% Change

FY 2009 

to FY 2010

 

FTE 1,692 1,500 0 1,500 0 1,500 1,500 0.00%

Object Classification: 

11.1 - Full-time permanent 119,955 124,208 336 124,544 0 124,544 127,561 2.70%

11.3 - Other than full-time permanent 1,500 1,500 0 1,500 0 1,500 1,540 2.67%

11.5 - Other personnel compensation 3,000 3,000 0 3,000 0 3,000 3,081 2.70%

11.8 - Special personal services 

payments 

0 0 0 3,508 0 3,508 3,603 2.71%

12 - Personnel benefits 26,200 29,888 105 30,975 0 30,975 31,703 2.70%

13 - Benefits for former personnel 175 175 0 175 0 175 180 2.86%

21 - Travel and transportation of 

persons 

1,603 1,503 0 1,503 0 1,503 1,511 0.53%

22 - Transportation of things 195 195 0 275 0 275 278 1.09%

23.1 - Rental payments to GSA 13,500 13,500 0 13,500 0 13,500 13,635 1.00%

23.2 - Rental payments to others 365 670 0 670 0 670 677 1.04%

23.3 - Comm, utilities, and misc 

charges 

61,964 11,413 0 10,351 0 10,351 10,455 1.00%

24 - Printing and reproduction 500 500 0 500 0 500 505 1.00%

25.1 - Advisory and assistance 

services 

4,800 6,002 0 6,002 0 6,002 6,062 1.00%

25.2 - Other services 28,892 19,035 0 18,759 0 18,759 18,574 -0.99%

25.3 - Other purchases of goods and 

services from Govt. accounts 

7,037 6,000 0 2,768 0 2,768 2,795 0.98%

25.4 - Operation and maintenance of 

facilities 

1,000 500 0 500 0 500 505 1.00%

25.7 - Operation and maintenance of 

equip 

7,500 8,005 0 8,005 0 8,005 8,085 1.00%

26 - Supplies and materials 8,446 3,600 0 3,600 0 3,600 3,636 1.00%

31 - Equipment 11,441 9,100 0 9,100 0 9,100 9,191 1.00%

32 - Land and structures 475 500 0 500 0 500 505 1.00%

42 - Insurance claims and indemnities 50 50 0 50 0 50 50 0.00%

Total Budget Authority $298,598 $239,344 $441 $239,785 $0 $239,785 $244,132 2.00%

 

Budget Activities: 

Payments 210,152 147,445 272 147,717 0 147,445 150,395 2.00%

Collections 19,804 21,481 40 21,521 0 21,481 21,911 2.00%

Government-wide Accounting and 

Reporting 

68,642 70,418 129 70,547 0 70,418 71,826 2.00%

Total Budget Authority $298,598 $239,344 $441 $239,785 $0 $239,785 $244,132 2.00%

 
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2.3 – Appropriations Detail Table 

Dollars in Thousands 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Payments* 901 $171,686 1,112 $210,152 963 $147,717 963 $150,395 0.00% 1.81%

Collections 148 23,103 137 19,804 135 21,521 135 21,911 0.00% 1.81%

Debt Collection 0 0 0 0 0 0 0 0 0.00% 0.00%

Gov. Accounting and Reporting 408 72,420 443 68,642 402 70,547 402 71,826 0.00% 1.81%

Subtotal New Appropriated Resources 1,456 $267,209 1,692 $298,598 1,500 $239,785 1,500 $244,132 0.00% 1.81%

Other Resources:

Recoveries

Offsetting Collections - Reimbursable 429 206,425 428 215,179 441 228,010 483 234,690 9.52% 9.17%

Available multi-year/no-year funds

Transfers In/Out

Subtotal Other Resources 429 $206,425 428 $215,179 441 $228,010 483 $234,690 9.52% 2.93%

Total Resources Available for Obligation 1,885 $473,634 2,120 $513,777 1,941 $467,795 1,983 $478,822 2.16% 2.36%

*FY 2008 Obligations includes $36.9M and 8 FTE associated with the Economic Stimulus Payments

FY 2008 FY 2010

Obligations Enacted Enacted Request to FY 2010

% Change

FY 2009

Resources Available for Obligation

FY 2008 FY 2009

2B – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY 

FINANCIAL MANAGEMENT SERVICE 

Federal Funds 

SALARIES AND EXPENSES: 

For necessary expenses of the Financial Management 

Service, [$239,785,000] $244,132,000 of which not to 

exceed $9,220,000 shall remain available until September 

30, [2011] 2012, for information systems modernization 

initiatives, of which not to exceed $2,500 shall be available 

for official reception and representation expenses. 

 [Department of the Treasury Appropriations Act, 2009]

Exhibit 2C – Permanent, Indefinite Appropriations 

Federal Reserve Bank Permanent, Indefinite Appropriation - The Federal Reserve Banks 

(FRBs) act as fiscal agents of the United States when directed by the Secretary of the 

Treasury in accordance with 12 United States Code (U.S.C.) 391. The FRBs support the 

fiscal operations and provide banking and financial services on behalf of the Treasury of 
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the United States. In 1998, Treasury received a permanent, indefinite appropriation to 

reimburse the FRBs for the services they provide as fiscal agents on behalf of Treasury. 

Since the FRBs support each FMS program activity, the performance measures listed in 

the Salaries and Expense section of this budget apply to the work done by the FRBs. 

FMS estimates that the cost of FRB services for FY 2010 will be approximately $321 

million. 

Financial Agent Services Permanent, Indefinite Appropriation - Congress has given the 

Secretary of the Treasury longstanding, broad discretion to deposit money in financial 

institutions and to obtain banking services by designating financial institutions to 

act/serve as Financial Agents (FA) of the United States Government. The services are in 

support of programs such as Electronic Federal Tax Payment System (EFTPS), the 

Lockbox Networks, plastic cards, e-commerce systems, and the deposit reporting and 

cash concentration system called CA$HLINK II. These and other programs are vital to 

FMS strategic goals, the Government’s financial critical infrastructure, and the expanding 

E-Government. The services provided by the FAs are authorized under numerous 

statutes including, but not limited to, 12.U.S.C. 90 and 265. In FY 2004, Treasury 

received a permanent indefinite appropriation to pay for these services. 

FMS estimates that the cost of FA services for FY 2010 will be approximately $609 

million, which includes $12.5 million for Government Sponsored Enterprise - Mortgage 

Backed Securities (GSE-MBS) administrative costs. Of this amount, approximately $50 

million is reimbursed from other government agencies and deposited into the General 

Fund. 

Table 2.4 – Permanent, Indefinite Appropriations 

2008 FY 2009 FY 2010

Enacted Request Request

Federal Reserve Bank $295,000 $305,000 $321,000

Financial Agent Services* $426,000 $593,000 $609,000

** Approximately $50 million is reimbursed from other FPAs and deposited into the General Fund. 

* FY 2010 includes $12.5 million for the Government Sponsored Enterpise - Mortgage Backed Securities 

administrative costs.

Permanent, Indefinite Appropriation

(Dollars in Thousands)

2C – Legislative Proposals 

Authorize Post-Levy Due Process for Levies Under the Federal Payment Levy 

Program 

To ensure the payment and collection of taxes, the IRS is authorized to take various 

collection actions, including Federal tax levies. Before a tax levy can be issued, however, 

the IRS must provide the taxpayer with notice and an opportunity for an administrative 

collection due process (CDP) hearing, and for judicial review. An exception to the 

requirement for pre-levy CDP proceedings applies to levies issued to collect a Federal tax 
FMS - 11 

liability from a State tax refund. This exception was recently expanded to include levies 

issued to collect Federal employment taxes under specified conditions. In these contexts, 

the taxpayer is provided an opportunity for a CDP hearing within a reasonable period of 

time after the levy. 

This proposal would further expand the exception to the requirement for pre-levy CDP 

proceedings to include levies issued to collect Federal tax liabilities from Federal vendor 

payments under the Federal Payment Levy Program. As with the current exceptions, the 

taxpayer would be provided an opportunity for a CDP hearing within a reasonable period 

of time after the levy. This proposal is estimated to result in an additional $1.2 billion in 

collections over ten years. 

The Federal Payment Levy Program is an automated process that matches Federal tax 

liabilities against payments disbursed by the Federal Government, including payments to 

Federal contractors. Under the current process, when a match occurs, IRS issues the 

CDP notice but cannot levy payment until the CDP requirements are complete. By this 

time the payment has already been made and the opportunity for levy is diminished. This 

proposal would remedy this situation by allowing the IRS to levy the payment at the time 

the payment is identified as is currently done to levy State tax refunds and to collect 

Federal employment taxes. 

Technical Correction to Allow IRS to Levy 100% of All Vendor Payments to Collect 

Delinquent Taxes 

Section 6331 (h) of the Internal Revenue Code was amended in 2005 to allow the Internal 

Revenue Service to levy up to 100 percent of Federal vendor payments. Before this 

change, the maximum was 15 percent. The current language, which was intended to 

cover all Federal vendor payments, refers to payments for "goods and services." This 

has been interpreted to exclude payments for the purchase or lease of real estate. 

Therefore, a technical correction is proposed to ensure that all Federal vendor payments 

are covered. This proposal is estimated to result in an additional $845 million in 

collections over ten years. 
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Section 3 – Budget and Performance Plan

This table lists all FY 2010 resources by strategic goal, objective and outcome outlined in 

the FY 2007-2012 Treasury Department Strategic Plan. The Treasury Strategic Plan is a 

corporate level plan for the Department that provides a description of what the agency 

intends to accomplish over the next five years. 

For detailed information about the FY 2007-2012 Treasury Strategic Plan, please go to: 

http://www.treas.gov/offices/management/budget/strategic-plan/

3.1 – Budget by Strategic Outcome 

Dollars in Thousands 

Treasury Strategic Outcome FY 2009 

Enacted

FY 2010 

Request Percent Change

 Financial information 77,666 75,403 2.4%

 Payments 286,299 293,048 2.4%

 Revenue collected 107,830 110,371 2.4%

Total $467,795 $478,822 2.4%

3A – Payments ($150,395,000 from direct appropriations and $137,057,000 from 

reimbursable programs): FMS issues and distributes payments, develops and implements 

Federal payment policy and procedures, promotes the use of electronics in the payment 

process, and assists agencies in converting payments from paper checks to Electronic 

Funds Transfer (EFT). This activity also includes controlling and providing financial 

integrity to the payments process through reconciliation, accounting and claims activities. 

Included in this activity is the claims activity which settles claims against the United 

States. These claims result from Federal Government checks that have been forged, lost, 

stolen or destroyed. FMS collects monies from those parties liable for fraudulent or 

otherwise improper negotiation of Government checks. It also includes processing 

claims and reclamations for EFT payments. 

FMS continues to expand and market the use of electronic media to deliver Federal 

payments, improve service to payment recipients, and reduce Government program costs. 

This helps decrease the number of paper checks issued and minimize costs associated 

with postage, the re-issuance of lost, stolen and misplaced checks, and inefficiencies 

associated with the non-electronic delivery of benefits. 

Direct deposit offers Federal benefit payment recipients ease and convenience, and 

protects against fraud and identity theft. Direct deposit also generates significant cost 

savings to the Government over paper checks. This is attributable to consumable 

inventory and postage costs which are mitigated with each EFT payment. However, 

FMS faces challenges in increasing growth in electronic payments. As the Government 

prepares for the huge increase in retiring baby boomers in the near future, it is critical that 

FMS dramatically increase use of direct deposit for issuing benefit payments. To help 

with this endeavor, FMS began a nationwide campaign called “Go Direct” to encourage 

current check recipients to switch to direct deposit. In its extremely successful third year, 
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over 901,000 conversions were attributed to the Go Direct campaign, saving millions of 

dollars for the United States Treasury in the years to come. As of January 2009, the total 

number of conversions obtained since the inception of the campaign is over 2.5 million. 

Additionally, in April FY 2008, FMS implemented a branded debit card program, Direct 

Express, which provides an electronic option for those Federal check recipients who do 

not have bank accounts to receive their Federal benefit payments. FMS is working with 

the Social Security Administration and others to develop and implement the program. As 

of the end of January 2009, over 308,000 beneficiaries had signed up for Direct Express. 

In support of its payments function, FMS has also undertaken considerable efforts to 

modernize its payment systems, incorporating new technologies and the internet. Some 

programs that will continue to be in focus are: 

• Stored Value Card (SVC): This is a smartcard, similar to a credit/debit card, using an 

encrypted computer chip to process "electronic money" stored on the card. This 

program is aimed at reducing the float-loss and reducing risk associated with the 

more than $2 billion in coin and currency in circulation at military bases, ships at sea, 

and other closed Government locations around the world. From 1997 to September 

2008, over 13.5 million EFT transactions with a dollar value in excess of $2 billion 

were processed via the SVC programs. 

• Automated Standard Application for Payments (ASAP.gov): ASAP is a web-based 

payment system developed by FMS in coordination with the Federal Reserve Bank of 

Richmond. Through this all electronic payment system, grantee organizations 

receiving Federal funds, including states, universities, for-profit, and non-profit 

entities, draw from accounts pre-authorized by Federal agencies. ASAP is one of two 

systems authorized by the Chief Financial Officer’s Council to disburse civilian grant 

payments on behalf of program agencies. ASAP is also used to reimburse certain 

financial agents that are performing financial services for FMS and other Federal 

agencies. Twenty-five Federal agencies use ASAP and the total CY 2008 

disbursements were $482 billion. 

• Payment Application Modernization (PAM): The PAM project is an effort to replace 

the current mainframe-based software applications that are used to disburse 

approximately 1 billion federal payments annually with a total dollar value of $1.5 

trillion. Ultimately, PAM will be a single application that will generate check, wire 

transfer, and ACH payments FPAs, including Social Security, IRS, Veteran’s Affairs, 

as well as others. In addition to standardization, FMS is modernizing the 

technologies employed in the development of the system, using commercial software 

products where feasible. Additionally, the project incorporates new and enhanced 

functionality to support improvements in the payment process. PAM implemented 

Release 1.0 in FY 2008 consisting of functionality to process Social Security 

Supplemental Income (SSI) ACH monthly payments. Release 2.0, SSI Check 

monthly processing, was implemented in February 2009. 
FMS - 14 

Other Resources:

Offsetting collections and reimbursements totaling $137,057,000 are collected for 

disbursement of federal agency payments to beneficiaries, including Social Security 

payments, Railroad Retirement Board payments, tax refunds and the Department of 

Veterans Affairs benefit payments. 

3.2.1 – Payments Budget and Performance Plan 

Payments Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $142,979 $147,055 $171,686 $147,717 $150,395

 Reimbursable Resources $134,400 $132,712 $130,853 $138,584 $137,057

Total Resources $277,379 $279,767 $302,539 $286,301 $287,452

Budget Activity Total $277,379 $279,767 $302,539 $286,301 $287,452

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Budget Activity Performance Measure Actual Actual Actual Target Target

Payments Percentage of paper check and electronic 

funds transfer (EFT) payments made 

accurately and on-time (%) (Oe) 

100 100 100 100 100

Payments Percentage of Treasury payments and 

associated information made electronically 

(%) (Oe) 

77 78 79 80 81

Payments Unit cost for Federal Government payment ($) 

(E) 

0.37 0.39 0.39 0.40 0.40

Payments Number of electronic payments in thousands 

(Ot) 

74,980 767,172 793,822 808,727 831,828

Payments Number of checks in thousands (Ot) 219,054 214,777 205,604 203,604 201,380

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: FMS disburses payments to a wide variety of recipients, 

such as those who receive Social Security Administration payments, Internal Revenue 

Service tax refunds, and the Department of Veterans Affairs benefits. In FY 2008 FMS 

issued nearly 1 billion non-Defense payments, with a dollar value of approximately $1.8 

trillion. More than 79 percent of these transactions were issued by Electronic Funds 

Transfer (EFT). In addition, FMS issued 119 million Economic Stimulus Payments 

valued at over $96 billion, 36 percent of which were issued by direct deposit. In FY 

2009, FMS is targeting the percentage of electronic payments to be 80 percent. 

3B – Collections ($21,911,000 from direct appropriations and $113,000 from 

reimbursable programs): The Collections activity collects revenues needed to operate the 

Federal Government through the management of the Federal Government’s collections 

infrastructure. FMS collected a record of $3.2 trillion in FY 2008 through a network of 

more than 9,000 financial institutions. It also manages the collection of Federal revenues 

such as individual and corporate income tax deposits, customs duties, loan repayments, 

fines and proceeds from leases. FMS establishes and implements collection policies, 

regulations, standards and procedures for the Federal Government. The majority of 

dollar collections are made electronically. In FY 2008, 80 percent of dollar collections 
FMS - 15 

were electronic. FMS set its FY 2010 target for the percentage collected electronically at 

80 percent. 

FMS develops and operates a variety of collection mechanisms and systems to meet 

program agency needs. It has initiated a comprehensive effort, CCMM, to streamline, 

modernize and improve the processes and systems supporting Treasury’s collections and 

cash management program. This effort will improve financial performance by enabling 

FMS and Government agencies to more effectively manage financial transaction 

information and improve the efficiency of the collections information reporting 

processes. Additionally, it will improve timeliness by providing FPA’s with the ability to 

predefine accounting rules to facilitate timely processing of financial transactions through 

the re-engineering of reporting processes. It will also reduce the number of collections 

and cash management systems and processes and eliminate the duplication of data, 

products, interfaces, and technologies. This effort will simplify and standardize systems 

and processes that have accumulated over 30 years. 

FMS continues to promote the use of electronics in the collections process and assist 

agencies in converting collections from paper to electronic media with programs such as:

• Electronic Federal Tax Payment System (EFTPS) - This is an accurate, secure and 

convenient way to collect all Federal tax payments, including corporate, excise and 

employment taxes and 1040 quarterly estimated taxes, via the internet or a telephone 

voice response system. EFTPS collects 82 percent of United States tax dollars and is 

required for businesses with annual Federal tax obligations above $200,000. FMS 

has been working to communicate the benefits of EFTPS – accuracy, security, 

simplicity and flexibility – to financial institutions, small businesses and tax 

practitioners. The goal is to encourage businesses and individuals to pay their Federal 

taxes electronically through EFTPS rather than by using paper Federal Tax Deposit 

coupons, which numbered close to 30.5 million in FY 2008, a reduction of 10 

percent as compared to FY 2007. FMS will direct its EFTPS efforts to financial 

institutions that process paper tax coupons as well as the tax practitioner community 

and small businesses to further expand the use of EFTPS. Additionally, FMS has 

implemented a new program that will allow financial institutions and other third 

parties to remit tax payments to EFTPS on behalf of their customers. In FY 2008, 

more than 98 million payments were processed through EFTPS, which represents an 

8.7 percent increase over FY 2007. 

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

payments to Federal agencies over the internet. Pay.gov provides collections, form 

submittal, bill presentment, and agency financial reporting services. Since inception 

in FY 2000 and through March 2009, Pay.gov has processed approximately 47 

million transactions valued at over $162.9 billion. Pay.gov meets the increasing 

demands of consumers and businesses for electronic alternatives by providing the 

opportunity to complete forms and applications, make payments, and submit queries 

online 24 hours a day, seven days a week. Pay.gov, which has been implemented 

with 128 Federal agencies representing 483 cash flows, collected $48.7 billion in FY 
FMS - 16 

2008 and $37.9 billion in FY 2007. New development will focus on interfaces with 

new systems within the new Collections Business Line Enterprise Architecture, and 

improved interfaces with Federal agencies. 

• Check Conversion and Truncation - This collections settlement service converts a 

paper check either into an image that is cleared through the banking system or into an 

EFT debit against the check writer’s bank account. In both cases, paper checks are 

digitized at the point of receipt and the transactions are cleared and settled 

electronically. This service is key in realizing FMS’ goal of increasing electronic 

collections and reducing collection costs. In FY 2008, more than 6.9 million items 

received over the counter, representing more than $12.8 billion, were processed 

through check conversion or truncation. Additionally, through FY 2008 more than 

31 million items received through the mail at lockboxes, representing more than 

$15.6 billion, were similarly processed. FMS’ target is that all paper checks remitted 

to the Federal Government will be converted or truncated and processed 

electronically by the end of FY 2010. 

3.2.2 – Collections Budget and Performance Plan 

Collections Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $18,291 $19,649 $23,103 $21,520 $21,911

 Reimbursable Resources $0 $0 $141 $0 $113

Total Resources $18,291 $19,649 $23,244 $21,520 $22,024

Budget Activity Total $18,291 $19,649 $23,244 $21,520 $22,024

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Budget Activity Performance Measure Actual Actual Actual Target Target

Collections Percentage collected electronically of total 

dollar amount of Federal government receipts 

(%) (Oe) 

79 79 80 80 80

Collections Unit cost to process a federal revenue 

collection transaction ($) (E) 

1.10 1.19 1.20 1.27 1.25

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: In FY 2008, FMS collected a record $3.2 trillion through a 

network of more than 9,000 financial institutions. The majority of the dollar amounts of 

FMS collections were made electronically – 80 percent of the $3.2 trillion collected. 

Approximately 56 percent of the transactions in FY 2008 were made electronically. In 

FY 2008, taxpayers paid more than $2.1 trillion using EFTPS, just slightly higher than 

FY 2007 which correlates to an increase of 9 percent in the number of payments, to over 

98 million. FMS stepped up its efforts in FY 2008 to work with Federal agencies to 

promote the use of electronics in the collections process and assists agencies in 

converting collections from paper to electronic media. 
FMS - 17 

3C – Debt Collection ($93,397,000 from reimbursable programs): FMS collects 

delinquent Government and child support debt by providing centralized debt collection, 

oversight and operational services to FPAs and states as required by the Debt Collection 

Improvement Act of 1996 and related legislation. The services include, but are not 

limited to, collecting delinquent debts through Cross-Servicing and offsetting Federal 

payments, providing a database for use as a tool for barring delinquent debtors, providing 

post-judgment collection, advising and educating agencies on improving debt 

management, and referrals to the Department of Justice. 

In FY 2010, FMS will continue to enhance FedDebt, a comprehensive system that 

integrated FMS’ previous collection tools: Cross-Servicing and the Treasury Offset 

Program (TOP). The TOP FedDebt function compares the names and Taxpayer 

Identifying Numbers (TINs) of debtors with the names and TINs of recipients of Federal 

payments. If there is a match, the Federal payment is reduced, or “offset,” to satisfy the 

overdue debt. Cross-Servicing includes use of various collection tools such as offset, 

demand letters to debtors, repayment agreements, administrative wage garnishment, 

referrals to the Department of Justice, credit bureau reporting, reporting discharged debts 

to the Internal Revenue Service, and use of private collection agencies. 

FedDebt, which integrates the payment offset and cross-servicing applications, provides 

FPAs with batch and online capabilities for all users, via a single sign-on interface and 

will employ a common file format for submitting Cross-Servicing or TOP debts. 

FedDebt provides a single platform for debt business applications, a single entry portal, a 

web-based customer interface, and a single database for reporting. FedDebt eliminates 

many labor-intensive processes and hard-copy data exchanges for Federal agency 

customers and service partners. FMS will continue developing FedDebt by implementing 

a service-oriented architecture. 

FMS is working to incorporate additional payment types into the payment offset and levy 

programs. This effort is directed primarily at increasing collections of debt, especially 

tax debt owed by contractors and vendors. The Defense Finance and Accounting Service 

is currently in the process of levying civilian salaries. In addition, the Centers for 

Medicare and Medicaid Services offset program will begin in early 2010, as will the 

Railroad Retirement Board levy program. The Postal Service is also scheduled to begin 

taking vendor payment offsets and levies in late 2009. In addition, enhancements of 

collection tools such as Administrative Wage Garnishment and Debt Check, an online 

database used to assist agencies in barring delinquent debtors from obtaining new loans 

or loan guarantees, will improve program performance. 
FMS - 18 

3.2.3 – Debt Collection Budget and Performance Plan 

Debt Collection Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $5,393 $0 $0 $0 $0

 Reimbursable Resources $28,312 $67,611 $74,705 $86,247 $93,397

Total Resources $33,705 $67,611 $74,705 $86,247 $93,397

Budget Activity Total $33,705 $67,611 $74,705 $86,247 $93,397

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Budget Activity Performance Measure Actual Actual Actual Target Target

Debt Collection Amount of delinquent debt collected per $1 

spent ($) (E) 

39.97 53.55 54.82 43.00 43.00

Debt Collection Amount of delinquent debt collected through 

all available tools ($ billions) (Ot) 

3.34 3.76 4.41 3.90 3.70

Debt Collection Percentage of delinquent debt referred to FMS 

for collection compared to amount eligible for 

referral (%) (Ot) 

95 100 99 97 97

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: In FY 2008, FMS collected a record $5.9 billion in 

delinquent debt, including $1.5 billion from Economic Stimulus payment offsets, which 

exceeded our FY 2008 target of $3.4 billion. The amount collected includes $2.8 billion 

in past due child support, $2.3 billion in Federal non-tax debt, and over $778 million in 

Federal tax levies and state tax debt offsets. Debt referrals from creditor agencies were at 

100 percent of eligible debt at the end of FY 2008. As a result of the continued program 

improvements, collections have steadily increased to more than $37.4 billion since the 

enactment of the Debt Collection Improvement Act of 1996. In calendar year 2008, the 

Internal Revenue Service referred an additional $45.4 billion of tax debts for continuous 

levy, a 17 percent increase over calendar year 2007. 

3D – Government-wide Accounting and Reporting ($71,826,000 from direct 

appropriations and $4,123,000 from reimbursable programs): The Government-wide 

Accounting and Reporting activity maintains the Federal Government’s books and 

accounts for its monetary assets and liabilities by operating and overseeing the 

Government’s central accounting and reporting system. It also works with Federal 

agencies to adopt uniform accounting and reporting standards and systems and provides 

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

accounting and reporting responsibilities. FMS gathers and publishes government-wide 

financial information which is used in establishing fiscal and debt management policies 

and is also used by the public and private sectors to monitor the Government’s financial 

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

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

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

FMS is building and implementing a system to improve the exchange of financial 

information among FMS, FPAs, OMB and the banking community. Once completed, 

this program, the Government-wide Accounting (GWA) Modernization Program, will 
FMS - 19 

comprehensively replace current government-wide accounting functions and processes 

that are both internal and external to FMS. In FY 2009 and beyond, FMS will continue 

working with FPAs to roll-out the new GWA system for the reporting of payments, 

collections and intra-governmental collection and payment transactions. The new system 

will improve the reliability, usefulness, and timeliness of the Government’s financial 

information, provide FPAs and other users with better access to that information, and 

eliminate duplicate reporting and reconciliation burdens on agencies. In addition, FPAs 

will have better tools for reporting financial information and access to daily account 

statements for monitoring the status of their financial information at the Treasury 

Department. This initiative will result in significant savings throughout Government as 

agencies will no longer have to prepare month-end reports classifying all of their 

disbursement and collection transactions or performing reconciliations on statements of 

differences associated with this month-end reporting. 

FMS is taking significant steps to address the material weaknesses found in the 

compilation process of Financial Report (FR) of the United States Government, 

including: 

• Requiring comprehensive accounting data from agencies on a quarterly basis that 

will allow FMS to better analyze the data for consistency and completeness. 

• Providing agencies with authoritative data to reconcile inter-agency transfers and 

other transactions that agencies report to the central accounting system. 

• Using the Chief Financial Officers (CFO) Council, Central Reporting Team as a 

forum to discuss accounting and reporting issues that affect the FR. 

• Working with the CFO Council and OMB to develop more consistent business rules 

for intra-governmental transactions. 

• Organized a General Fund Team to analyze intra-governmental activity that must be 

reported to offset agency reporting with the General Fund of the United States 

Treasury. 

• Improving the two Reconciliation Statements in the FR that reconcile Net Operating 

Cost to Cash. 

• Strengthening internal controls over the process for preparing the FR. 

The goal of these actions is to remove the compilation process as a barrier to a clean audit 

opinion for the FR. 

In FY 2010, FMS will continue moving forward on the Financial Information and 

Reporting Standardization (FIRST) initiative. This initiative integrates budget and 

financial reports from FPAs. FIRST will improve the consistency of the budgetary and 

proprietary accounting data recorded in agency financial statements and reported to FMS 
FMS - 20 

through its trial balance. FIRST is designed to provide authoritative information, 

contained in Treasury’s central accounting system, to the agencies, to facilitate the 

reconciliation process for specific intra-governmental transactions. 

3.2.4 – Government-wide Accounting and Reporting Budget and Performance Plan 

Government-wide Accounting and Reporting Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $67,338 $64,954 $72,420 $70,548 $71,826

 Reimbursable Resources $0 $1,122 $726 $3,179 $4,123

Total Resources $67,338 $66,076 $73,146 $73,727 $75,949

Budget Activity Total $67,338 $66,076 $73,146 $73,727 $75,949

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Budget Activity Performance Measure Actual Actual Actual Target Target

Government wide 

Accounting and 

Reporting 

Percentage of Government-wide accounting 

reports issued accurately (%) (Oe) 

100 100 100 100 100

Government wide 

Accounting and 

Reporting 

Percentage of Government-wide accounting 

reports issued timely (%) (E) 

100 100 100 100 100

Government wide 

Accounting and 

Reporting 

Unit cost to manage $1 million dollars of cash 

flow ($) (E) 

8.50 10.36 8.96 12.38 11.77

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: FMS issues 100 percent of its government-wide accounting 

reports accurately and timely. For the fifth consecutive year, FMS released the Financial 

Report of the United States Government (FR) 75 days after the fiscal year-end. In FY 

2007, Government Accountability Office (GAO) issued an unqualified opinion on the 

2007 Statement of Social Insurance and acknowledged and noted improvements with 

regard to consistency with agency information in the Balance Sheet the Statement of Net 

Cost and in the note disclosures that are directly linked to the amounts on these principal 

financial statements. They also acknowledged the progress made in conforming with 

GAAP and in the development and implementation of corrective action plans and 

milestones for certain internal control weaknesses. 

 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treasury.gov/offices/management/dcfo/accountability-reports/
FMS - 21 

Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

FMS’ strategic management of human capital is consistent with its mission, vision and 

priorities supporting the Treasury’s strategic goal to manage the United States 

Government’s Finances Effectively. 

FMS is on the technology forefront in the performance of its mission. FMS has taken 

steps to improve the quality of its professional workforce. A Human Capital Strategic 

Plan has been developed to identify current structure weaknesses and build upon its 

strengths. Achieving the following objectives will support and strengthen its work force: 

• Strategic Alignment: A human capital strategy is aligned with FMS’ mission, goals, 

organizational objectives, and is integrated into the strategic plans, performance plans 

and budgets. 

• Workforce Planning & Deployment: FMS is citizen-centered, delayered, missionfocused, and leverages E-Government and competitive sourcing. 

• Leadership & Knowledge Management: Leaders and managers effectively manage 

people, ensure continuity of leadership, and sustain a learning environment that drives 

continuous improvement in performance. Succession strategies result in a diverse 

leadership talent pool that is continually updated. 

• Results-Oriented Performance Culture: FMS has a diverse, results-oriented, high 

performance workforce. It has a performance management system and awards 

program that effectively holds employees accountable, links individual/team/unit 

performance to organizational goals and desired results. 

• Diversity: FMS demonstrates its commitment to diversity by recognizing the 

contributions of all employees and by understanding the strengths that arise from the 

broad range of backgrounds, cultures, customs, and beliefs. FMS has processes in 

place to sustain diversity and to address under-representation particularly in missioncritical occupations and leadership positions. 

• Talent: FMS has significantly reduced mission-critical skills, knowledge and 

competency gaps. FMS is making significant progress and demonstrates continued 

improvement in meeting agreed-upon hiring timeline goals, i.e., the 45-day hiring 

model. 

• Accountability: Human capital decisions are guided by a data-driven results-oriented 

planning and accountability system. 

Through these objectives FMS has strengthened its human capital position. Proactive 

identification and filling of vacant positions is a part of recruiting and retaining new 
FMS - 22 

talent. Student intern program authorities are used extensively to attract talent from some 

of the best colleges and universities. 

FMS has action plans to attain and maintain the right number of people with the right 

skills to accomplish the mission. It continually manages the ongoing challenge of 

recruiting and retaining highly skilled individuals in critical areas, including Accountants 

(with strong analytical skills) and IT Specialists. These challenges have increased with 

heightened competition from the private sector. In addition, there is ongoing position 

management and assessment of FTE distribution. As vacancies occur, they are reviewed 

to determine whether the position should be back-filled, the FTE be redirected as 

appropriate, or the FTE be eliminated. This is how FMS counters the possibility of either 

a surplus or deficiency of staff in certain job occupations. 

Through FY 2010, 22 percent of FMS’ current employees are eligible for Optional 

Retirement and 41 percent are eligible for Discontinued Service or Early Retirement. 

Strategies are in place to close skill-gaps and fill staffing requirements in mission-critical 

occupations. This includes use of all pay incentives within budget constraints (e.g., 

Recruitment and Retention Incentives) and specialized employee development programs: 

SES Candidate Development, Project Management Certification, Management 

Preparatory Development, Federal Career Intern Program, Leadership, and Mentoring. 

Another strategy to manage staffing needs is use of contractors and/or outsourcing. FMS 

supplements its workforce with contractors in security, building maintenance, IT support 

and various finance functions provided by the Bureau of the Public Debt. Government 

collections are outsourced to financial institutions and Federal Reserve Banks who serve 

as financial and fiscal agents of the Treasury Department. 

 

FMS believes that a diverse workforce is vital to achieve its mission. It monitors 

recruitment and diversity goals to improve areas of under-representation and actively 

supports programs and initiatives to recruit minority college students. The following 

programs have been established to ensure a diverse workforce: 

• SES candidate program was developed to create a diverse group of future senior 

executives. 

• Special emphasis programs were expanded and Equal Employment Opportunity and 

diversity awareness training was instituted. 

• Hispanic recruitment was enhanced through the increased use of Hispanic 

Associations of Colleges and Universities interns, which created a gateway for new 

Hispanic employees. 

In addition, FMS has increased participation in the Washington Internship for Native 

Students program as well as the Department of Labor’s Workforce Recruitment Program 

for students with disabilities. FMS continues to use the Federal Career Internship 

Program to facilitate and accelerate general hiring of qualified and talented minority 

student interns. FMS has a solid and viable Human Capital Strategy to fulfill its mission. 
FMS - 23 

4.1 – Summary of IT Resources Table Dollars in Thousands 

Information Technology Investments(in $ Thousands) Budget Activity

FY 2007 & 

Earlier 

Enacted

FY 2008 

Enacted

FY 2009 

President's 

Budget

FY 2010 

Requested 

Automated Standard Application for Payments (ASAP) Payments 11,115 2,234 -79.9% 2,422 8.4% 2,340 Debt Management Accounting System (DMAS) Debt Collection 0 0 0.0% 0 0.0% 0 

Deposit and Data Management (DDM) Collections 1,886 1,226 0.0% 1,276 0.0% 1,310 FMS EFTPS (Electronic Federal Tax Payment System) Collections 1,234 638 N/A 659 3.3% 682 FedDebt Debt Collection 0 0 0.0% 0 0.0% 0 Financial Information and Reporting Standardization (FIRST)

Government-wide 

Accounting 7,491 6,039 -19.4% 7,342 21.6% 8,315 

Government-Wide Accounting and Reporting Modernization (GWA)

Government-wide 

Accounting 96,072 10,011 -89.6% 9,595 -4.2% 9,785 

International Treasury Services (ITS.gov) Payments 1,650 332 0.0% 341 2.7% 351 Internet Payment Platform (IPP) Payments 824 300 0.0% 308 2.7% 318 Intra-Governmental Payment and Collection (IPAC) Government-wide Accounting 4,604 500 -89.1% 552 10.4% 568 

PACER Payments 13,459 2,489 -81.5% 2,631 5.7% 2,714 Pay.gov Collections 2,082 545 -73.8% 569 4.4% 573 

Payment Application Modernization (PAM) Payments 25,221 12,085 -52.1% 12,123 0.3% 12,858 Secure Payment System (SPS) Payments 20,332 4,431 -78.2% 3,901 -12.0% 3,988 Treasury Check Information System (TCIS) Payments 6,376 836 -86.9% 854 2.2% 871 Subtotal, Major IT Investments 192,346 41,666 -78.3% 42,573 2.2% 44,673 Non-Major IT Investments 2/ 16,145 7,286 -54.9% 8,701 19.4% 7,207 

Infrastructure Investments 3/ 40,112 20,056 -50.0% 23,200 15.7% 25,369 Enterprise Architecture 1,800 1,400 -22.2% 1,400 0.0% 1,370 Total IT Investments 4/ 250,403 70,408 -71.9% 75,874 7.8% 78,619 

1/ ITS.gov was changed from a non-major to a major investment in FY 20094/ Infrastructure reporting requirements changed in FY 2009, which resulted in changes to FY 2009 and FY 2010 figures.

% Change from 

FY07 to FY08

% Change from 

FY08 to FY09

% 

FY

3/ Figures provided for FY 2009 include funding amounts for the Treasury Web Application Infrastructure (TWAI) platform that were not included in previous years. 2/ In FY 2009, the number of Non-Majors reporting increased to 17 investments. 
FMS - 24 

4B – Information Technology Strategy 

The FMS IT Strategy addresses all bureau information resource management. It focuses 

on technology and how it supports FMS’ Strategic Planning Goals. The FMS Strategic 

Plan is a long-range plan that supports the economic policies and mission of the 

Department of the Treasury for payments, collections, government-wide accounting and 

reporting, and collection of delinquent debt. 

FMS has an established governance process that selects, evaluates, and monitors new and 

existing IT investments. FMS IT Governance Process complies with Department of the 

Treasury and OMB's requirements for Capital Planning and Investment Control, and 

Enterprise Architecture. Before projects are started or a major change implemented, 

there is a formal approval process beginning with the Division Information Officers 

(DIO) Council. Each project provides the DIO Council with project business case 

documentation, which describes the project, documents benefits, shows start-up costs, 

full life-cycle costs, other systems impacted, programmatic impact, and platforms that 

will be used. Costs include all project costs including contracts, FTE, hardware, and 

software. The FMS governing bodies, including the DIO Council and Architecture 

Review Board (ARB), review each investment to ensure compliance with FMS’ target 

architecture, use of existing infrastructure, and shared resources (e.g. document imaging 

and Single Sign On). 

At least once a year, each FMS project is presented to the DIO Council. Current cost, 

schedule, and performance goals status for the project is presented. Any project that is 

not within acceptable cost, schedule, and performance goals must provide the DIO 

Council with a project remediation plan detailing the steps it plans to implement to get 

the investment back within acceptable ranges. The project is also required to provide the 

DIO Council with quarterly cost, schedule, and performance updates. 

The FMS process includes recommendations by the DIO council for 

approval/disapproval of all IT investments and major enhancements. The FMS 

executive board (EB) must also approve all large scale IT projects and it conducts 

quarterly reviews of all FMS investments with Exhibit 300s. 
FMS - 25 

4.2 – Program Assessment Table 

Program Name: Debt Collection

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

2. Set interim targets and describe interim actions necessary to achieve the long-term performance measure.

3. Level fund the debt collection program for FY 2005.

1. Develop a more ambitious long-term performance measure.

1. FMS establishes annual performance measures for collections and referrals of debt by agencies. Listed are examples of 

collection tools and initiatives used by FMS to achieve long-term measures:

• Administrative Wage Garnishment (AWG)

• DebtCheck

• Continuous Agency Outreach

• President's Management Agenda (PMA)

• Receivables Reporting

2. A Federal Contractor Tax Compliance Task Force consisting of FMS, IRS, and the Center for Medicare and Medicaid 

Services is examining the issue of how best to incorporate CMS payments to Medicare providers into the Federal Payment 

Levy Program.

4. Propose legislation to increase and enhance debt collection opportunities.

3. FMS supports numerous legislative proposals which will enable FMS to significantly enhance our debt collection

opportunities. Listed are proposals passed into Law in 2008: 

• Offset and Levy of CMS (Medicare) Payments: The Medicare bill, H.R. 6331, P.L. 110-275, allows FMS to offset CMS 

payments for nontax and child support debts and sets a timetable for payment levy.

• Ten-Year Statute of Limitations for Offset: The Farm Bill, contains the elimination of the 10-year statute of limitations for 

offset of nontax payments. 

• Offset to Collect Unemployment Compensation Debts: The SSI Extension bill, H.R. 2608, P.L. 110-328, contains a 

provision to allow offset of federal tax refunds to collect past due state unemployment compensation debts resulting from 

4. The debt long-term measure was evaluated and updated as part of FMS' update to its Strategic Plan. The Strategic Plan 

set a target of collecting $8 billion per year by 2018. In FY 2008 FMS collected a record $4.41 billion. For FY 2009, FMS 

has a target of $3.5 billion in collections and in FY 2010 $3.7 billion.
FMS - 26 

Program Name: Government-wide Accounting and Reporting

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

4. FMS is taking significant steps to address the material weaknesses found in the compilation process of Financial Report 

(FR) of the United States Government, including: 

• Working closely with agencies to reconcile differences between agency budgetary and proprietary reporting that effects the 

FR. 

• Providing agencies with authoritative data to reconcile inter-agency transfers and other transactions that agencies report to

the central accounting system.

• Using the Chief Financial(CFO) Council, Central Reporting Team as a forum to discuss accounting and reporting issues 

that affect the FR. 

• Working with the CFO Council and OMB to develop more consistent business rules for intra-governmental transactions.

• Organized a General Fund Team to analyze intragovernmental activity that must be reported to offset agency reporting with

the General Fund. 

• Improving the two Reconciliation Statements in the FR that reconcile Net Operating Cost to Cash. 

• Strengthening internal controls over the process for preparing the FR. 

The goal of these actions is to remove the compilation process as a barrier to a clean audit opinion for the FR. 

1. The program must develop a baseline for its efficiency performance measure. While FMS has unit cost, timeliness, and 

accuracy measures in its internal and external performance reporting that are used to manage for improved efficiency, at the 

time of this PART evaluation, a baseline for the new unit cost measure had yet not been established.

2. More work needs to be done in order to ahieve a clean opinion on the Financial Report of the U.S. Government. 

Improvement is needed on material weakness in the areas of accounting data compilation/consolidation and reconciliation of

intragovernmental reporting differences.

1. FMS has developed a baseline for the efficiency performance measure that measures the unit cost to manage one million 

dollars of cash flow.

2. FMS will continue to move forward with the two major initiatives which will modernize long standing Federal accounting

processes and provide agencies with methodologies and tools to improve the accuracy and consistency of their financial 

data:

• The Government-wide Accounting (GWA) Modernization project is a multi-year project which will replace existing 

government-wide accounting functions and processes. FMS' goal is to provide applications and tools that allows agencies to 

convert to the new process when their systems are ready. We will also provide a tool that allows agencies to phase in GWA 

processing and use an incremental approach to allow for efficient planning and scheduling of resources and testing in 

manageable parts. FMS will be working with non-Treasury disbursed agencies to develop a process to allow GWA reporting 

of Intra-Governmental Payment and Collection (IPAC) transactions, as well as continue to work with FMLoB to implement 

common government accounting classification. 

• FMS will continue the Financial Information and Reporting Standardization (FIRST) project which will integrate budget and 

financial reports from Federal Program Agencies and continue with the development for this initiative. 

3. FMS will continue working with closely with OMB and Federal agencies to address unreconciled intra-governmental 

transactions. FMS requires quarterly intragovernmental data from the agencies and compiles reports that match intragovernmental differences for the agencies to better reconcile their accounts. Treasury has taken the lead to eliminate intragovernmental differences resulting from fiduciary transactions and FMS is doing the same for other intra-governmental 

transaction categories. The results of these efforts have been promising, but will not be verified until the agencies submit 

their data for the FR compilation process. FMS works closely with the Central Reporting Transformation Team (CRTT) and a

sub-group (the Intra-gov Buy/Sell team) to improve the data exchanged between agencies when they enter into a intragov 

buy/sell transaction. 

For a complete list of program results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html