Department of the Treasury

Departmental Offices

Salaries and Expenses

Congressional Justification 

for Appropriations and 

Annual Performance 

Report and Plan

FY 2018 
DO - 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 – Operating Levels Table................................................................................................................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 Executive Direction Resources and Measures.............................................................................7

2.1.2 International Affairs and Economic Policy Resources and Measures .........................................8

2.1.3 Domestic Finance and Tax Policy Resources and Measures.....................................................12

2.1.4 Treasury-wide Management and Programs Resources and Measures.......................................14

Section III – Additional Information ........................................................................................ 19

A – Summary of Capital Investments....................................................................................... 19
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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 

By streamlining its workforce and finding more efficient ways to manage its programs, 

Departmental Offices (DO) will achieve savings of $20,326,000 in FY 2018. This budget 

request supports the Presidential Executive Order on a comprehensive plan for reorganizing the 

Executive Branch to improve the efficiency, effectiveness, and accountability of federal 

agencies. Within the reduced funding level, DO will maintain its commitments to tax reform, 

cybersecurity, and critical infrastructure protection for both Treasury information technology 

systems and the U.S. financial sector, while promoting economic growth in the U.S., advancing 

U.S. economic and financial policy priorities around the world, enhancing U.S. competitiveness 

and job creation, and promoting international financial stability. DO also expects to maintain 

effective managerial and administrative support to DO offices and the Department of the 

Treasury.

1.1 – Appropriations Detail Table

Note: Due to a change in accounting methodology, FTE providing administrative support to the Office of Terrorism and Financial Intelligence 

(TFI) were realigned from reimbursable to direct resources in FY 2017. This change did not affect the level of support to TFI.

FY 2016 FTE and Other Resources are Actual.

Dollars in Thousands

DO Salaries and Expenses

Appropriated Resources

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources 16FTE 16Amt 17FTE 17Amt 18FTE 18Amt ChgFTE ChgAmt pctFTE pctAmt

Executive Direction 151 $37,943 159 38,102 143 34,578 (16) ($3,524) -10.06% -9.25%

Domestic Finance and Tax Policy 299 $84,591 331 81,215 301 73,804 (30) ($7,411) -9.06% -9.13%

International Affairs and Economic Policy 247 $58,520 241 57,951 227 52,875 (14) ($5,076) -5.81% -8.76%

Treasury-w ide Management and Programs 117 $41,446 160 44,809 140 40,494 (20) ($4,315) -12.50% -9.63%

Subtotal New Appropriated Resources 814 $222,500 891 $222,077 811 $201,751 (80) ($20,326) -8.98% -9.15%

Other Resources: 16FTE 16Amt 17FTE 17Amt 18FTE 18Amt ChgFTE ChgAmt pctFTE pctAmt

Offsetting Collections - Reimbursables 189 $102,882 107 $102,882 107 $102,882 0 $0 0.00% 0.00%

Subtotal Other Resources 189 $102,882 107 $102,882 107 $102,882 0 $0 0.00% 0.00%

Total Budgetary Resources 1,003 $325,382 998 $324,959 918 $304,633 (80) ($20,326) -8.02% -6.25%

FY 2016 FY 2017 FY 2017 to FY 2018

Enacted Annualized CR Request Change % Change

FY 2018
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1.2 – Budget Adjustments Table

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$4,284,000 / +0 FTE

Pay Raise +$2,129,000 / +0 FTE 

Funds are requested for the proposed January 2018 pay-raise.

Pay Annualization +$780,000 / +0 FTE 

Funds are requested for annualization of the January 2017 pay-raise.

Non-Pay +$1,375,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment.

Program Decreases ..................................................................................-$24,610,000 / -80 FTE

Streamline Staffing -$14,697,000 / -80 FTE

To align with the administration’s initiative to improve government efficiency and effectiveness, 

Departmental Offices is implementing a staffing streamlining effort to ensure appropriate levels 

for meeting Treasury’s mission and objectives, and maximum effectiveness and efficiency. 

Reduce Contracts, Supplies, and Equipment -$9,913,000 / +0 FTE

Departmental Offices will achieve savings through reductions to non-labor activities, such as 

service contracts, equipment, and supplies. These include potential reductions in advisory 

services, electronic data and periodical subscriptions, warehouse footprint, janitorial and 

landscaping services, FOIA assistance, internal controls support and contractual support to the 

American Recovery and Reinvestment Act.

DO Salaries and Expenses FTE Amount

FY 2017 Annualized CR 891 $222,077

Changes to Base:

Maintaining Current Levels (MCLs): 0 $4,284

Pay-Raise 0 $2,129

Pay Annualization 0 $780

Non-Pay 0 $1,375

Subtotal Changes to Base 0 $4,284

Total FY 2018 Base 891 $226,361

Program Changes:

Program Decreases (80) ($24,610)

 Streamline Staffing (80) ($14,697)

 Reduce Contracts, Supplies, and Equipment 0 ($9,913)

Subtotal Program Changes (80) ($24,610)

Total FY 2018 Request 811 $201,751

Dollars in Thousands
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1.3 – Operating Levels Table

Note: This table includes total annually appropriated funding (actuals for FY 2016, FY 2017 Annualized CR and FY 2018).

Dollars in Thousands

DO Salaries and Expenses FY 2016 FY 2017 FY 2018

Object Classification Actual Annualized CR Request

11.1 - Full-time permanent 100,821 113,165 104,519

11.3 - Other than full-time permanent 1,850 2,077 1,918

11.5 - Other personnel compensation 2,301 2,583 2,385

11.9 - Total personnel compensation 104,972 117,824 108,822

12.0 - Personnel benefits 32,490 36,468 33,682

Total Personnel and Compensation Benefits $137,462 $154,292 $142,504

21.0 - Travel and transportation of persons 4,156 4,239 4,059

22.0 - Transportation of things 360 367 265

23.1 - Rental payments to GSA 840 850 618

23.2 - Rental payments to others 875 893 644

23.3 - Communication, utilities, and misc charges 399 407 294

24.0 - Printing and reproduction 132 135 97

25.1 - Advisory and assistance services 23,057 19,076 16,962

25.2 - Other services from non-Federal sources 10,516 8,676 7,736

25.3 - Other goods and services from Federal sources 27,020 22,500 19,877

25.4 - Operation and maintenance of facilities 78 80 57

25.7 - Operation and maintenance of equipment 601 613 442

26.0 - Supplies and materials 3,742 3,817 3,253

31.0 - Equipment 6,012 6,132 4,943

32.0 - Land and structures 2,746 0 0

43.0 - Interest and dividends 2 0 0

Total Non-Personnel $80,536 $67,785 $59,247

Total Budgetary Resources $217,998 $222,077 $201,751

FTE 814 891 811
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D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of 

Changes

DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

Federal Funds

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

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 and local entities; and Treasury-wide 

management policies and programs activities, $201,751,000: 

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, 2019, 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.

Note.—A full-year 2017 appropriation for this account was not

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Further Continuing

Appropriations Act, 2017 (P.L. 114–254). The amounts included for 

2017 reflect the annualized level provided by the continuing 

resolution.

The Administration 

proposes “state and 

local entities” because 

Treasury needs broad 

authority to provide 

technical assistance. 

The Administration 

requests two-year 

funding for the 

operations and 

maintenance of 

facilities to allow the 

ability to execute multiyear contracts.

The Administration 

requests two-year 

funding for 

international operations 

to facilitate invoicing, 

receipt of 

reimbursements, and 

obligation of funds for 

staff assigned to 

overseas posts 

including at 

international financial 

institutions pursuant to 

5 U.S.C. § 3343.

E – Legislative Proposals

Treasury has no legislative proposals for DO Salaries and Expenses.
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

Departmental Offices (DO) is the headquarters bureau for the Department of the Treasury. It 

provides leadership in economic and financial policy, financial intelligence and enforcement, and 

general management. Treasury utilizes effective management, policies, and leadership to protect 

our national security through targeted financial actions, to promote the stability of the nation’s 

financial markets, and to ensure the Government’s ability to collect revenue and fund its 

operations.

The FY 2018–2022 strategic plan is currently under development. The annual performance plan 

will be updated in the FY 2019 budget to reflect the new priorities.

B – Budget and Performance by Budget Activity

2.1.1 Executive Direction Resources and Measures

Executive Direction Budget and Performance

($34,578,000 from direct appropriation, $29,632,000 from reimbursable resources): 

The Executive Direction program area provides direction and policy formulation to the 

Department and DO and interacts with Congress and the public on Departmental policy matters. 

No specific performance goals/measures are presented for this budget activity as the work of 

these offices is captured within the other budget activities.

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column9

Appropriated Resources $37,219 $35,763 $34,588 $35,313 $37,778 $38,102 $34,578

Other Resources $4,545 $4,691 $15,137 $21,677 $29,632 $29,632 $29,632

Budget Activity Total $41,764 $40,454 $49,725 $56,990 $67,410 $67,734 $64,210

FTE 160 156 162 189 209 193 177
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2.1.2 International Affairs and Economic Policy Resources and Measures

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target FY 2016

Trend

IA - Monitor Quality and 

Enhance Effectiveness of 

International Monetary 

Fund (IMF) Lending 

Through Review of IMF 

Country Programs

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

IA - Monitor Quality and 

Enhance Effectiveness of 

MDB Lending Through 

Review of MDB Grant and 

Loan Proposals

N/A 100.0 100.0 100.0 100.0 100.0 100.0 100.0

IA - Percentage of MDB 

Grant and Loan Proposals 

Containing Satisfactory 

Frameworks for Results 

Measurement

94.0 92.0 93.0 93.0 89.0 94.0 94.0 95.0

IA - Timely Review of 

CFIUS Cases

N/A 100.0 100.0 100.0 100.0 100.0 100.0 100.0

OTA - Program 

Engagement

3.9 3.8 3.7 3.8 3.9 3.6 3.6 3.6

International Affairs and Economic Policy Budget and Performance 

($52,875,000 from direct appropriation, $14,680,000 from reimbursable resources): 

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. 

During the past year, Economic Policy staff in the Office of Macroeconomic Analysis closely 

monitored U.S. economic performance, producing many hundreds of succinct, quick-turn reports 

on more than 50 recurring economic indicators. 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. The office also 

served as Treasury’s lead in the “Troika” process, a semi-annual exercise in which Treasury, the 

Office of Management and Budget (OMB), and the Council of Economic Advisers (CEA)

develop the economic assumptions that drive the Administration’s ten-year forecast and directly 

determines the Administration’s annual budget proposals. Finally, the office continued to deliver 

the High-Quality Market Corporate Yield Curve (a set of daily rates issued on a monthly basis) 

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column9

Appropriated Resources $59,277 $56,804 $56,265 $57,362 $59,061 $57,951 $52,875

Other Resources $1,293 $2,275 $4,891 $5,896 $14,680 $14,680 $14,680

Budget Activity Total $60,570 $59,079 $61,156 $63,258 $73,741 $72,631 $67,555

FTE 237 232 226 259 272 255 241
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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, and several other 

yield curves. These yield curve data are used by federal agencies that administer federal pension 

programs and other future payment programs to calculate their annual liabilities.

Economic Policy staff in the Office of Microeconomic Analysis also produced an estimate of 

state Total Taxable Resources, which estimates the relative fiscal capacity of states and is used in 

determining the allocation of funds for the Community Mental Health Services and Substance 

Abuse Prevention and Treatment block grant programs. The Office of Microeconomic Analysis

has been actively engaged in helping the public and policymakers understand important 

economic policy issues through several white papers: 

• A series of Economic Security issue briefs, covering earnings and income, young adults, 

older women, and the safety net.

• A framework for comparing public-private partnerships and conventional procurement in 

infrastructure finance.

• An examination of the economic effects of non-compete contracts.

These white papers complemented the office’s contributions to intra-agency and inter-agency 

policy development on these subjects.

In FY 2016, the Office of International Affairs (IA) helped ensure a favorable external 

environment for sustained job growth and financial stability in the U.S. by prioritizing its work 

around five themes: Trade and Investment; Global Rebalancing; International Financial 

Stability; Management; and International Development.

In its role as lead for international negotiations on non-insurance financial services and transfers, 

Treasury pursued critical financial services commitments and robust transfers provisions of trade 

and investment negotiations. Treasury developed a new provision prohibiting data localization 

measures in the financial services sector and negotiated provisions to address unfair currency 

practices by promoting transparency and accountability. Treasury will continue working with 

our trading partners to promote the Administrations’ trade agenda in all these areas. Treasury 

also plays an important U.S. Government role on broader trade issues such as State Owned 

Enterprises, Customs, and other trade related disciplines that impact Treasury equities. Treasury 

is playing a lead role in analyzing the implications of the United Kingdom’s exit from the 

European Union for U.S. financial services firms. In addition, as the U.S. lead 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 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 does this through 

multilateral and bilateral activities working through the International Monetary Fund (IMF), the 

G-20, and the U.S.-China Comprehensive Economic Dialogue (CED). Treasury has successfully 

gotten other G-20 Finance Ministers to agree to a new IMF report that will regularly assess the 

G-20’s progress toward achieving strong, sustainable, and balanced growth, as well as regularly 

assess potential for policy development and policy issues related to achieving faster and more 
DO - 10

sustainable adjustment of external imbalances. Treasury is focused on combatting unfair 

currency practices that disadvantage U.S. industry and workers, and to this end, has strengthened 

the semi-annual surveillance of the exchange rate practices of U.S. major trading partners. 

Treasury also continues to press for stronger exchange rate surveillance in the IMF. 

In the 2016 bilateral economic dialogue with China, Treasury secured new and strengthened 

commitments that will ensure that China’s economic growth continues to deliver concrete 

benefits for the American people, including addressing excess industrial capacity; promoting 

non-discriminatory trade and investment measures; improving economic transparency; and 

advancing policies to shift China’s growth model to one driven by household consumption rather 

than investment and exports.

In FY 2016, Treasury continued to support the U.S. economy’s recovery by mitigating the threat 

from weak growth in the euro area and working to limit negative economic and financial 

spillovers from the crisis in Greece and the conflict in Ukraine. Specific activities included: 

working with European counterparts to help maintain long-term sustainability of the euro; 

advancing the establishment of a centralized European banking union; working with the IMF and 

others to monitor progress towards economic stabilization in vulnerable, strategically important 

countries; and implementing technical assistance and loan guarantee programs for Ukraine.

Treasury leverages multilateral mechanisms to advance inclusive economic growth worldwide 

through IA’s work in support of the Multilateral Development Banks’ (MDBs) financing in 

developing countries; G-20 initiatives on financial inclusion and infrastructure finance; and the 

Paris Club’s targeted debt treatments. In FY 2015, Treasury led the U.S. negotiating team for the 

Addis Ababa Action Agenda (AAAA), the outcome document of the Third International 

Conference on Financing for Development. The AAAA serves as the foundational document to 

guide the financing and implementation of the “Sustainable Development Goals”; this shifted the 

focus for development financing to a greater attention on developing countries’ own domestic 

resource mobilization efforts and private sector investment, in addition to official bilateral and 

multilateral development assistance. 

Treasury also enhanced its oversight of the MDBs’ policies and programs, including completing 

negotiations for replenishments of the World Bank’s International Development Association 

(IDA), the African Development Fund, and the Inter-American Development Bank Group’s 

Multilateral Investment Fund; monitoring implementation of the World Bank’s new 

environmental and social safeguards framework; and continuing reviews of the World Bank’s 

shareholding and capital. Treasury also worked with the MDBs to make more optimal use of 

their balance sheets, including IDA’s plans to leverage its equity by borrowing from the markets 

for the first time and implementation of the merger of concessional and non-concessional lending 

windows at the Asian Development Bank and Inter-American Development Bank.

IA rebalanced resource allocations to reflect changing mission requirements. Areas addressed in 

the reallocation include the increasing demands associated with coordinating international 

financial regulatory reform and chairing the Committee on Foreign Investment in the United 

States (CFIUS). IA continued implementation of the results of a strategic review to improve 

CFIUS’s ability to timely identify, assess, and resolve any national security concerns that may be 

posed by foreign acquisitions of U.S. businesses. At the same time, IA began to direct additional 

staffing resources to increase its capacity to manage a record-breaking caseload in terms of 

volume and complexity. 
DO - 11

Treasury, as chair of CFIUS, coordinates an interagency process to review certain foreign 

investments for national security risks in accordance with the procedures and tight deadlines 

specified in law and regulation. 

• Timely Review of CFIUS Cases: This measure tracks compliance with statutory deadlines 

for completing national security reviews of transactions notified to the Committee on Foreign 

Investment in the United States (CFIUS) to ensure that the CFIUS process is timely and 

efficient. The target (100 percent) was met in FY 2016. Office of International Affairs’ 

target for this measure in FY 2017 and FY 2018 is 100 percent. 

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. 

• Monitor Quality and Enhance Effectiveness of International Monetary Fund (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 2016. 

In FY 2017 and FY 2018, 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 2016. In FY 2017 and FY 2018, 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 2016, 89 percent of MDB grant and loan project proposals had excellent 

or satisfactory ratings for the results matrices. The decrease in the MDB results frameworks 

ratings is attributed to a slight increase in large complex MDB projects where the results 

targets were not adequately robust based on our analysis. To address this going forward, 

Treasury continues to engage with MDBs to improve their focus on stronger investment 

outcomes. The FY 2017 target is 94 percent and the FY 2018 target is 95 percent.

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 transition 

countries build the human and institutional capacity to implement such policy improvements. 

Finance ministries and central banks of developing countries that have demonstrated a strong 

commitment to reforming their financial systems or public financial management can receive 

direct assistance from OTA through its cadre of expert advisors. The technical assistance team 

leverages its funding to increase transparency and accountability, reduce corruption, and 

strengthen the development of market-based policies and practices in these economies. 
DO - 12

OTA support promotes more effective use of a country’s own resources and helps reduce 

dependency on foreign aid. This work also supports stabilization of financial sectors in national 

security/foreign policy priority countries (e.g., Ukraine), more transparent and accountable 

financial sectors for U.S. investors overseas, and the expansion of markets for U.S. exporters, 

thus promoting jobs and economic growth at home. 

• 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 

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 2016, the Traction score was 

3.9, exceeding the target of 3.6. In FY 2017 and FY 2018, IA’s target for Traction is 3.6.

2.1.3 Domestic Finance and Tax Policy Resources and Measures

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target FY 2016

Trend

DF-Variance Between 

Estimated and Actual 

Receipts (Annual 

Forecast)(%)

3.8 2.5 3.25 2.8 3.1 4.25 4.25 4.25

Domestic Finance and Tax Policy Budget and Performance 

($73,804,000 from direct appropriation, $55,231,000 from reimbursable resources): 

The Offices of Domestic Finance and Tax Policy monitor and provide advice and assistance to 

the Secretary in their respective areas, including about financial markets and the regulation of 

financial institutions.

In FY 2016, the Office of Tax Policy (OTP) developed proposals for tax reform and budget 

proposals to streamline and modernize existing tax laws and procedures. The office also

developed and implemented regulations and procedures for new programs established by 

Congress, including guidance relating to the Kline-Miller Multiemployer Pension Reform Act 

(MPRA), new centralized partnership audit rules, and State-sponsored and federally tax-free

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column9

Appropriated Resources $71,451 $68,351 $81,783 $76,520 $79,748 $81,215 $73,804

Other Resources $11,629 $12,804 $24,977 $40,240 $55,231 $55,231 $55,231

Budget Activity Total $83,080 $81,155 $106,760 $116,760 $134,979 $136,446 $129,035

FTE 288 326 339 364 398 386 356
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Achieving a Better Life Experience (ABLE) Act accounts. OTP also led interagency and 

intergovernmental efforts for coordination and cooperation regarding tax policy. This includes:

• Work with the Organization for Economic Co-operation and Development (OECD) and the 

United Nations that led to adoption by both bodies of new tax treaty policies;

• Coordination with the Department of Education in modeling student loan defaults.

OTP continued to provide leadership for the OECD, Global Forum, and G-20, advocating for the 

interests of U.S. based businesses. Further, the office published a new U.S. model tax treaty that 

contains technical improvements to protect against abuse. In FY 2017 and FY 2018, OTP plans 

to continue engaging in bilateral tax treaty negotiations to modernize existing treaties, establish 

key new treaty relationships, and actively engage international organizations to protect the fiscal 

and business interests of the U.S.

The Office of Domestic Finance (DF) continued working in FY 2016 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 about their finances, supporting small businesses, strengthening 

financial institutions and markets, promoting access to credit, and improving financial access 

and financial independence. 

During FY 2016, DF led 10 cybersecurity exercises involving government and private-sector 

participants. The exercises explored a variety of threat scenarios, how the participants would 

respond, and developed after action reports for future improvement. Also in 2016, Treasury, as 

chair of the Financial and Banking Information Infrastructure Committee (FBIIC), coordinated 

among the FBIIC to reach agreements to permit the sharing of cybersecurity information among 

its member financial regulatory agencies. This information-sharing is augmented with monthly 

briefings from Treasury and its partners to regulators and the financial sector on cyber threats 

and actionable information. Taken together, these actions help organizations prevent security 

incidents, respond faster when they occur, and strengthen overall network resilience and defense. 

The DF Office of Debt Management (ODM) seeks to fund the federal government at the least 

cost 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 2016, ODM determined for more than 260 auctions the amount and maturity of debt that the 

Bureau of the Fiscal Service issued. These debt issuances totaled $8.0 trillion and raised $795 

billion in new cash to fund the U.S. government.

In May 2017, DF launched the new USAspending.gov website. It allows taxpayers to examine 

nearly $4 trillion in annual federal spending and see how this money flows from congressional 

and presidential actions to local communities and businesses. The new site is the culmination of 

a nearly three-year collaborative effort led by the Treasury Department and the Office of 

Management and Budget. The data is compiled from federal agencies and published quarterly.

The DF Office of Financial Stability (OFS) continued to wind down investments in the Troubled 

Asset Relief Program (TARP) while continuing its housing programs. OFS has made significant 

progress towards winding down TARP investment programs and continues to implement 

housing programs to help struggling families avoid foreclosure. As of March 31, 2017, OFS had

recovered nearly 98 percent of the $435.9 billion in total program funds disbursed under TARP,
DO - 14

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 

$6.6 billion.

DF has one performance measure:

• Variance between estimated and actual receipts (annual forecast) (percent): As part of 

managing the federal government’s central operating account and cash position, the DF 

Office of Fiscal Projections (OFP) forecasts net cash flows (e.g., federal receipts, outlays, 

and other miscellaneous flows) 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.

The actual variance for FY 2016 was 3.1 percent, which is significantly lower than the

4.25 percent target for FY 2016. The target for both FY 2017 and FY 2018 is 4.25 percent.

2.1.4 Treasury-wide Management and Programs Resources and Measures

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target FY 2016

Trend

Percent of Procurement 

Dollars Spent on Small 

Business

38.52 39.15 36.91 35.11 36.17 37.0 35.0 35.0

Treasury-wide 

Engagement Index of the 

FEVS

70.0 68.0 66.0 67.0 67.0 67.0 67.0 68.0

Treasury-wide Footprint 

(Square Footage)

37,998 37,320 36,411 35,439 34,894 34,927 34,310 33,650

Treasury-wide Leaders 

Lead Index of the Federal 

Employee Viewpoint 

Survey (FEVS)

N/A N/A 53.0 54.0 55.0 55.0 55.0 56.0

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column9

Appropriated Resources $40,441 $35,223 $31,802 $35,971 $41,112 $44,809 $40,494

Other Resources $17,478 $15,320 $30,858 $55,213 $3,339 $3,339 $3,339

Budget Activity Total $57,919 $50,543 $62,660 $91,184 $44,451 $48,148 $43,833

FTE 151 123 139 171 124 164 144
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Treasury-wide Management and Programs Budget and Performance 

($40,494,000 from direct appropriation, $3,339,000 from reimbursable resources): 

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 

Emergency Programs; the Office of the Deputy Chief Financial Officer; the Office of Civil 

Rights and Diversity; the Office of Minority and Women Inclusion; and the Office of the Deputy 

Assistant Secretary for Management and Budget. 

Treasury-wide Management and Program’s performance metrics are: 

• Percentage of Procurement Dollars Spent on Small Business: In FY 2016, Treasury aimed to 

meet or exceed all small business contracting goals. While Treasury did not meet its overall 

small business goal of 37 percent, missing the mark by 0.83 percent, it met or exceeded all 

other prime-contract small business goals. The following Treasury bureaus were included in 

the goaling report, with no exclusions: Office of the Comptroller of the Currency, Office of 

Thrift Supervision, and the Bureau of Engraving and Printing (BEP). The preponderance of 

the negative impact, on the goals, lies with BEP, which continues to face unique challenges. 

Because of the highly specialized nature of BEP in producing U.S. banknotes and the fixed 

costs associated with creating currency, there are a limited number of vendors globally who 

are able to supply key raw materials and highly specialized printing equipment to perform the 

work. Unless a waiver can be granted or the exclusions are considered in the goaling report, 

both the small business prime and subcontracting goals will continue to be a challenge. 

Treasury attended and conducted outreach activities to provide small business (SB), small 

and disadvantaged business (SDB), women-owned small business (WOSB), HUBZone small 

business (HZ), and service-disabled veteran-owned small business (SDVOSB) with 

information about specific contract opportunities and technical assistance about conducting 

business with Treasury. This outreach work will continue in FY 2017 and FY 2018. 

Particularly noteworthy is that Treasury far exceeded the contracting goals for the following 

socioeconomic groups: SDB at five percent, WOSB at five percent, HZ at three percent, and 

SDVOSB at three percent. Contract obligations tripled for SDB to 15.29 percent, 11.59 

percent for WOSB, 4.49 percent for HZ, 4.17 percent for SDVOSB. Throughout FY 2017, 

Treasury will continue to employ the successful strategies of targeted outreach, enhanced 

leadership accountability, policies, tools and resources, and increased intra-agency 

communication with the expectation of achieving its goals. The FY 2017 overall small 

business goal has been set at 35 percent. Treasury’s FY 2016 small business contract 

achievements are expected to be announced by the Small Business Administration in the 

spring or early summer 2017. 

• Treasury-wide “Engagement” Index of Federal Employee Viewpoint Survey (FEVS): 

Treasury’s strategy focused on improving employee engagement in a number of areas,

thereby creating an opportunity to improve the effectiveness of our workforce while

improving our ranking among other Federal Agencies. Strategic efforts were focused on 

Overall Satisfaction, Leaders Lead, and the Inclusion Quotient – Fairness. Treasury 

conducted two Treasury-wide Engagement review sessions for high-level leadership during 

FY 2016 in addition to bureau-level reviews. Treasury’s scores for the Engagement Index 

increased from 66 percent for FY 2015 to 67 percent for FY 2016. 

• 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 
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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. 

• Treasury-wide “Leaders Lead” Index of Federal Employee Viewpoint Survey (FEVS): 

Treasury also set the goal to increase the “Leaders Lead” index above FY 2015 results. 

Treasury’s score for the Leaders Lead Index increased from 54 percent in FY 2015 to 55 

percent in FY 2016, and Treasury’s score led the government-wide average by two 

percentage points.

Office of the Chief Human Capital Officer

In FY 2016, Treasury continued execution of its FY 2014 – FY 2017 Human Capital Strategic 

Plan, focusing efforts on improving quality in the delivery of human capital services and 

increasing workforce engagement, performance, development, and diversity. The Department 

obtained the 2302(c) Compliance Certification from the Office of the Special Counsel, becoming 

the second largest federal agency to achieve certification for strengthening awareness of the 

Merit System Principles and Prohibited Personnel Practices with supervisors, managers, and 

executives. Treasury successfully converted to the government-wide executive performance 

management framework and achieved full Office of Personnel Management (OPM) certification 

of the Treasury Executive Performance Management System. The Treasury Executive Institute 

(TEI) increased its subscriber base by a total of eight additional agencies/components and 

reduced the TEI member assessment fee for the second year in a row. TEI nearly tripled the 

number of its remotely accessible programs (from 62 to 171) and more than doubled (from 2,057 

to 4,276) total attendance over FY 2015. The Department also improved the hiring process at 

Departmental Offices, resulting in a decrease in average Time-to-Hire from 119 days in FY 2015 

to 98 days in FY 2016. In FY 2017, Treasury will continue to focus on building workforce 

planning capabilities in support of federal efforts to expand the strategic management of federal 

human capital and close skills gaps in Federal and Treasury mission-critical occupations.

Treasury will also begin implementation of an enterprise Integrated Talent Management system 

that will, when fully deployed at the end of FY 2018, provide employees a single, modern 

system for learning, performance, and career planning; give leadership a consolidated view of 

the Department’s human capital; and consolidate 24 stand-alone legacy systems into a single, 

cloud-based system.

Office of Civil Rights and Diversity

In FY 2017, Treasury developed a new Diversity and Inclusion Strategic Plan, which mapped to 

both the Department's Strategic Plan and the Human Capital Plan. The bureaus have developed

implementation plans specific to each bureau. The Office of Civil Rights and Diversity (OCRD)

coordinated with the Human Resources Engagement Strategy to improve the morale of the 

workforce as reflected in the Federal Employee Viewpoint Survey (FEVS), with a specific focus 

on the new Inclusion Quotient portion of the survey. Treasury’s scores in the Diversity and 

Inclusion portion of the FEVS have remained stable, but the scores in the area of Fairness have 

declined. Focus groups will be held to determine what is driving those numbers. OCRD also 

coordinated a number of major studies, including a barrier analysis of the Senior Executive 

Service at Treasury and a gender pay equity study. Additionally, this office continues to work 

with the Treasury Executive Institute to develop programming for executives and senior level 

staff in the areas of diversity and inclusion.
DO - 17

Office of the Deputy Chief Financial Officer

For FY 2016, the Department received its seventeenth consecutive unmodified audit opinion on 

its Treasury-wide financial statements. Treasury anticipates unmodified audit opinions for the 

consolidated audit for FY 2017 and FY 2018. 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

The Department is proud of the collective effort that led to the outstanding achievement of 

exceeding four out of five small business prime goals and three out of five subcontracting goals. 

The “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. 

Office of the Senior Procurement Executive

In FY 2016, Treasury initiated a comprehensive acquisition transformation strategy designed to 

facilitate innovation, strategic management, efficiency, and effective mission outcomes. Central 

to the strategy is early planning and broad stakeholder participation as well as accelerated 

transition to strategic acquisition vehicles. In support of the Federal Information Technology 

Acquisition Reform Act (FITARA), the Department has placed significant focus on IT 

acquisition across all procurement programs.

In FY 2016 and FY 2017, 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 provide 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 2016 reviews 

focused on pre-award actions and were designed to facilitate successful award of critical 

contracts. To help ensure successful contract performance outcomes, FY 2017 MAP reviews 

were expanded to include existing critical contracts. In FY 2016, Treasury reviewed 40 

acquisitions, valued at $3.8 billion; reviews included 21 IT acquisitions valued at $1.5 billion. 

The Department anticipates a similar level of oversight and collaboration in FY 2017 and 

FY 2018.

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. For example, Treasury’s enterprise contract 

vehicles for wireless services and devices, awarded in April 2016, provide pricing more 

advantageous than available via General Services Administration (GSA) contracts, saving the 

Department over $4 million (21 percent) annually. In June 2016, Treasury awarded an agencywide, mandatory use ordering vehicle for Adobe Enterprise Licenses anticipated to achieve 

savings of approximately 10 percent over GSA published prices. In FY 2015 – FY 2016, 

Treasury achieved total savings of $6.3 million on its Domestic Delivery contracts against 
DO - 18

GSA’s government-wide ordering vehicle. FY 2017 and FY 2018 strategy extends and expands 

Treasury’s transition to government-wide Best In Class contract vehicles, reducing the need to 

establish department level contracts and freeing associated resources for focus on other 

acquisition priorities. 

In FY 2016, Treasury implemented an initiative to reduce non-value added and/or conflicting 

procurement policy within the Department’s operational contracting organizations. Treasury’s 

strategy to reduce procurement policy resulted in an overall 17.9 percent reduction of policy as

measured by pages of policy eliminated within a defined timeline in FY 2016. The reductions 

were made by four of five primary contracting offices; a significant policy reduction by the fifth 

and largest contracting organization within Treasury (Internal Revenue Service) is anticipated in 

FY 2017. The policy reduction initiative will continue through FY 2017 and FY 2018.
DO - 19

Section III – Additional Information

A – Summary of Capital Investments

Information Technology Capital Investments 

DO is focused on leveraging Treasury enterprise data centers to provide flexible, customized 

information technology support for its customers. At the same time, a hybrid cloud strategy is 

being pursued to provide a secure alternative to traditional data centers. This strategy will 

securely facilitate enterprise mobile applications, increase support for telework, and drive longterm cost efficiencies through data center consolidation. 

DO continues to strengthen its governance through DO and an enterprise-wide investment 

review process. The investment review process is comprised of both senior business and 

technology leaders who help to ensure that all technology investment decisions align with the 

mission and goals of the Department. The investment review process helps the CIO prioritize 

opportunities for commodity IT and improved mission outcomes. 

Non-Information Technology Capital Investments 

The Main Treasury Building and Freedman’s Bank Building, formerly the Treasury Annex, are 

the recipients of DO’s major non-IT capital investments. The Treasury Building is the oldest 

departmental building and the third oldest federally occupied building in Washington, preceded 

only by the Capitol and the White House. The Main Treasury Building covers five stories and a 

raised basement and sits on five acres of ground. It was dedicated as a National Historic 

Landmark on October 18, 1972. The Freedman’s Bank Building, also owned by the Department, 

is part of the Lafayette Square National Register Historic District. On January 7, 2016, the 

Treasury Department renamed the Treasury Annex building to mark the 150th anniversary of the 

Freedman’s Savings and Trust Company (Freedman’s Bank).

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.