U.S. Department of the Treasury

The Budget in Brief

FY 2015
Message from the Secretary of the Treasury 

Dear Member: 

Over the past five years, the Department of the Treasury has supported President Obama’s 

efforts to rebuild and grow the nation’s economy in the wake of one of the worst recessions in 

our nation’s history. During this time, Treasury has also continued efforts to deliver core 

services efficiently at a lower cost to the taxpayer. 

The President’s FY 2015 Budget requests $13.8 billion to fund the Department’s operating 

bureaus and $2.6 billion to fund our International Programs. This proposal includes substantial 

savings across the Department, as well as targeted investments in key areas that will help 

strengthen our nation’s long-term economic and fiscal position. 

Our request makes strategic investments for the Internal Revenue Service (IRS) to improve 

service to tens of millions of taxpayers and reduce the deficit through more effective 

enforcement of tax laws. A reduction of nearly $1 billion since FY 2010 in funding for the IRS 

has major implications for taxpayers and the tax system. As a result, taxpayers face longer wait 

times on the phone; it takes longer to respond to taxpayer correspondence, and results in reduced 

revenue collection. 

Our Budget also includes funding for select priorities such as investments to improve our 

cybersecurity, an increased commitment to the Healthy Food Financing Initiative, and improving 

financial management and transparency through USAspending.gov. 

The Department’s International Programs Budget request will continue to strengthen our national 

security, support the next generation of export markets, and address key global challenges like 

environmental degradation and food security, while fostering private sector development and 

entrepreneurship. The request also proposes legislation to increase the U.S. quota in the 

International Monetary Fund (IMF) and simultaneously reduce by an equal amount U.S. 

participation in the IMF’s New Arrangements to Borrow, representing no new financial 

commitment to the IMF while preserving the U.S.’s veto at the IMF and influence in the global 

economy. 

The FY 2015 Congressional Budget Justification includes the information required in the Annual 

Performance Report. I have validated the accuracy, completeness, and reliability of the 

performance data in this report. 

Sincerely, 

Jacob J. Lew 

March 4, 2014
U.S. Department of the Treasury 

FY 2015 Budget in Brief 

Summary of FY 2015 President’s Budget 

Executive Summary ....................................................................................................................................... 1 

Summary Tables and Charts 

FY 2015 President’s Budget by Function............................................................................................... 1 

FY 2015 President’s Budget by Strategic Goal ...................................................................................... 9 

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing .......................................................... 10 

Summary of FY 2015 Increases and Decreases ................................................................................. 11

Appropriated Accounts – Bureau Program Detail 

Departmental Offices Salaries and Expenses ............................................................................................. 13 

Department-wide Systems and Capital Investment Program....................................................................... 19 

Office of Inspector General .......................................................................................................................... 21 

Special Inspector General for TARP ............................................................................................................ 27 

Treasury Inspector General for Tax Administration ..................................................................................... 31 

Community Development Financial Institutions Fund .................................................................................. 37 

Financial Crimes Enforcement Network ....................................................................................................... 43 

Alcohol and Tobacco Tax and Trade Bureau .............................................................................................. 47 

Fiscal Service .............................................................................................................................................. 53 

Internal Revenue Service ............................................................................................................................ 61 

Non-Appropriated Accounts – Bureau Program Detail 

Office of Financial Stability .......................................................................................................................... 81 

State Small Business Credit Initiative .......................................................................................................... 85 

Office of Financial Research... .................................................................................................................... 87 

Financial Stability Oversight Council ............................................................................................................ 91 

Bureau of Engraving and Printing ................................................................................................................ 93 

United States Mint ....................................................................................................................................... 99 

Office of the Comptroller of the Treasury ................................................................................................... 105 

Treasury International Programs 

International Programs .............................................................................................................................. 111 

Supplemental Information 

Summary of FY 2015 Appropriations Language ........................................................................................ 115 

Treasury Department Mandatory Funding ................................................................................................. 125 

The information presented in the FY 2015 Budget in Brief is accurate and complete as of March 4th 2014. 

Any updated information will be reflected in the budget available on the Treasury Department website, 

Treasury.gov.
Mission Statement 

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

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

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

government’s finances and resources effectively.

Executive Summary 

FY 2015 President’s Budget by Function

Dollars in thousands 

 

FY 2013 FY 2014 FY 2015 Increase/ Percent

Operating 

Level1,2 Enacted Request Decrease Change

Management & Financial $1,285,929 $1,338,388 $1,316,208 ($22,180) -1.66%

Departmental Offices Salaries and Expenses $292,257 $312,400 $308,734 ($3,666) -1.17%

Department-wide Systems and Capital Investments Program $0 $2,725 $2,725 $0 0.00%

Office of Inspector General $28,091 $34,800 $35,351 $551 1.58%

Treasury IG for Tax Administration $143,761 $156,375 $157,419 $1,044 0.67%

Special Inspector General for TARP $41,716 $34,923 $34,234 ($689) -1.97%

Community Development Financial Institutions Fund $209,440 $226,000 $224,900 ($1,100) -0.49%

Financial Crimes Enforcement Network $104,993 $112,000 $108,661 ($3,339) -2.98%

Alcohol and Tobacco Tax and Trade Bureau $94,654 $99,000 $101,000 $2,000 2.02%

 Program Cap Adjustment Included in IRS $0 $0 ($5,000) ($5,000) 0.00%

Net, Alcohol and Tobacco Tax and Trade Bureau $94,654 $99,000 $96,000 ($3,000) -3.03%

Bureau of the Fiscal Service3 $370,017 $360,165 $348,184 ($11,981) -3.33%

Tax Administration $11,197,612 $11,290,612 $12,476,527 $1,185,915 10.50%

IRS Taxpayer Services $2,122,553 $2,156,554 $2,317,633 $161,079 7.47%

IRS Enforcement $5,022,178 $5,051,178 $5,371,826 $320,648 6.35%

IRS Operations Support $3,740,943 $3,769,942 $4,456,858 $686,916 18.22%

IRS Business Systems Modernization $312,938 $312,938 $330,210 $17,272 5.52%

Subtotal, Treasury Appropriations Committee $12,483,541 $12,629,000 $13,792,735 $1,163,735 9.21%

 Treasury Forfeiture Fund ($950,000) ($836,000) ($950,000) ($114,000) 13.64%

Total, Treasury Appropriations Committee $11,533,541 $11,793,000 $12,842,735 $1,049,735 8.90%

Treasury International Programs $2,585,579 $2,690,229 $2,610,005 ($80,224) -2.98%

Economic Growth, National Security and Poverty Reduction (MDBs) $2,044,409 $2,075,449 $2,042,105 ($33,344) -1.61%

Food Security $156,647 $163,000 $30,000 ($133,000) -81.60%

World Bank Enviornmental Trust Funds $347,497 $428,280 $401,000 ($27,280) -6.37%

Debt Relief $11,392 $0 $92,400 $92,400 0.00%

Office of Technical Assistance (OTA) $25,634 $23,500 $23,500 $0 0.00%

Middle East Transition Fund $0 $0 $5,000 $5,000 0.00%

International Monetary Fund $0 $0 $16,000 $16,000 0.00%

Total $14,119,120 $14,483,229 $15,452,740 $969,511 6.69%

1 FY 2013 Operating Level reflects the full-year continuing resolution, reduced by the .2% rescission and sequestration.

3

 The FY 2013 Operating Level does not include the $1 million in Legacy Treasury Direct User Fee collections.

FY 2014 to FY 2015

2

 IRS FY 2013 Operating Level includes an interappropriation transfer of $73M from the Enforcement appropriation to Taxpayer Services 

($13M) and Operations Support ($60M) appropriations. FY 2014 Enacted includes $92 million in funding ($34 million to Taxpayer Services 

and $58 million to Operations Support). 

Summary 

The Department of the Treasury’s FY 2015 

request includes resources to strengthen the 

U.S. economy and job creation, help 

struggling homeowners, monitor risks to the 

financial system, encourage small business 

lending, protect taxpayers, promote fair and 

effective revenue collection, fight financial 

Department of the Treasury - Budget in Brief 1
crimes, reinforce the international 

competitiveness of the United States, 

manufacture currency, and responsibly 

manage the U.S. government’s financial 

resources, among other duties. 

The FY 2015 President’s Budget request 

proposes $13.8 billion for the Department’s 

operating accounts. Of this amount, $480 

million is provided via a program integrity 

cap adjustment intended to improve the 

integrity of the tax system. Within the total 

level of funding, Treasury continues to 

identify operational savings while making 

key investments in support of the 

Administration’s goals. In addition, the 

Budget proposes $2.6 billion for Treasury’s 

International Assistance programs in order 

to promote our national security, open new 

markets for U.S. exporters, and address key 

global challenges such as food security and 

the environment. 

The FY 2015 Budget request for Treasury’s 

operating bureaus is 1.7 percent below the 

FY 2014 enacted level, excluding the IRS. 

The Budget identifies $154.2 million in 

efficiency savings and program reductions. 

The Budget aligns with the Department’s 

FY 2014 to 2017 Strategic Plan, Agency 

Priority Goals, and Federal Priority Goals.1

The Congressional Justification also serves 

as the Department’s Annual Performance 

Report and Plan. 

 

1

Per the GPRA Modernization Act, P.L. 111-352, requirement to 

address Federal Goals in the agency Strategic Plan and Annual 

Performance Plan, please refer to Performance.gov for information 

on Federal Priority Goals and the agency's contributions to those 

goals, where applicable.

Treasury Strategic Goal: Promote 

domestic economic growth and stability 

while continuing reforms of the financial 

system 

Treasury is committed to promoting 

economic growth that allows citizens and 

businesses to have more confidence in the 

safety and soundness of the financial 

system. 

Supporting Small Businesses 

The Small Business Jobs Act of 2010 

created the Small Business Lending Fund 

(SBLF) and the State Small Business Credit 

Initiative (SSBCI). The SBLF helps 

increase the availability of credit to small 

businesses by providing capital to 

community banks and community 

development loan funds with assets under 

$10 billion. In its first round of funding, 

SSBCI allocated $1.5 billion to strengthen 

state programs that leverage private capital 

and support lending to small businesses and 

small manufacturers that are creditworthy 

but unable to access the credit needed to 

grow and create jobs in their communities. 

The first $271 million in program 

expenditures supported lending and 

investments of $1.9 billion to more than 

4,600 small businesses across the country—

creating or saving more than 53,000 

American jobs. The $1.5 billion original 

investment is expected to result in up to $15 

billion in new lending to small businesses in 

participating states. The Budget proposes a 

new authorization of $1.5 billion for SSBCI 

to build on the momentum of the program’s 

first round and strengthen the federal 

government’s relationships with state 

economic development agencies which are 

highly responsive to capital needs in local 

markets. This additional $1.5 billion would 

be awarded in two allocations, $1 billion 

awarded on a competitive basis to states best 

able to target underserved groups, leverage 

Department of the Treasury - Budget in Brief 2
federal funding, and evaluate results and 

$500 million awarded according to a needbased formula based on economic factors 

such as job losses and pace of economic 

recovery. 

Supporting Economic Growth and 

Opportunity 

In FY 2013, Treasury continued to focus on 

economic growth for local communities and 

small businesses through funding for 

projects that would encourage job creation 

and further investment in distressed 

communities. The FY 2015 Budget 

proposes $224.9 million for the Community 

Development Financial Institutions (CDFI) 

Fund to promote economic development 

investments in low-income and underserved 

communities. Of the total request, $35 

million – an increase of $13 million from 

FY 2014 – for the Administration’s Healthy 

Food Financing Initiative will support 

increased availability of affordable, healthy 

food options for the food desert 

communities. The Budget also proposes 

legislation to extend the CDFI Bond 

Guarantee program by one year to provide a 

source of long-term capital to CDFIs that 

support lending in underserved 

communities. 

Treasury proposes to implement a fund to 

support Pay for Success projects. A 

growing number of state and local 

governments are using the Pay for Success 

model to finance preventive social programs 

that can post savings to the federal 

government while improving outcomes for 

families and communities. Emerging Pay 

for Success projects are hampered by an 

inability to leverage savings across levels of 

government and a lack of rigorous data that 

could help investors evaluate the risk 

associated with these ventures. A Pay for 

Success Fund will be designed to ensure that 

taxpayers get the best possible returns for 

funds expended and government assets are 

protected by exclusively paying for projects 

that show measurable outcomes resulting in 

greater federal savings and programmatic 

efficiency. The Budget proposes $300 

million in new mandatory funding for this 

program. 

Implementing Financial Reform 

The FY 2015 Budget continues 

implementation of the comprehensive 

financial reforms included in the DoddFrank Wall Street Reform and Consumer 

Protection Act. These reforms place tougher 

limits on risk-taking by financial institutions 

in order to promote financial stability and 

protect American people. 

The Financial Stability Oversight Council 

(FSOC), chaired by the Secretary of the 

Treasury, monitors threats to financial 

stability and facilitates coordination across 

the financial regulatory community. The 

Secretary is actively engaged in activities to 

identify risks, promote market discipline, 

and respond to emerging threats to U.S. 

financial stability. The Secretary also 

coordinates several rulemaking processes, 

including the risk retention rule, which aims 

to provide the economic incentive to 

securitize well underwritten mortgages and 

other assets, and the Volcker Rule, which 

changes behavior and practices in financial 

markets to help safeguard taxpayers. 

Treasury is represented at the international 

Financial Stability Board (FSB) by the 

Under Secretary for International Affairs. 

At the FSB, Treasury supports coordination 

to improve global financial stability. This 

will decrease the risk of regulatory arbitrage 

to the global financial system, avoid an 

undue regulatory burden for U.S. firms, and 

protect our economy from risks emanating 

from beyond our shores. 

Department of the Treasury - Budget in Brief 3
The Federal Insurance Office (FIO) 

monitors all aspects of the insurance 

industry and advises the Secretary on 

insurance matters of national and 

international importance, as well as 

representing the United States on prudential 

aspects of international insurance matters, 

where previously, the United States had not 

been represented by any specifically 

designated individual, office, or 

agency. Among other projects, FIO is 

actively engaged in the FSOC and at the 

International Association of Insurance 

Supervisors. 

The Office of Financial Research was 

created to serve the needs of FSOC and its 

member agencies, to collect and standardize 

financial data, to perform essential research 

and to develop new tools for measuring and 

monitoring risk in the financial system. The 

OFR is supporting the data needs for the 

FSOC’s nonbank designations process, 

continues to enhance its Financial Stability 

Monitor—a dashboard of financial stability 

metrics and indicators—and has played a 

central role in the international initiative to 

establish a global Legal Entity Identifier 

(LEI). 

Winding Down the Troubled Asset Relief 

Program 

The actions taken under Troubled Asset 

Relief Program (TARP), along with other 

emergency measures put in place by the 

Board of Governors of the Federal Reserve 

System and the Federal Deposit Insurance 

Corporation (FDIC) helped prevent the 

collapse of the U.S. financial system and 

stabilize the economy. As Treasury 

continues winding down the investment 

programs in TARP, it continues operation of 

housing programs to help struggling 

homeowners avoid foreclosure. 

The true cost of the financial crisis will 

always be measured in the human suffering 

and economic damage it caused – the jobs 

that were lost, the businesses that were 

closed, and the college educations or 

retirements that were deferred. However the 

fiscal cost of TARP is also important. Of 

the $412 billion in support that TARP 

provided to the financial and automotive 

sectors, only $12.4 billion remains 

outstanding. Taxpayers have realized a 

significant positive return on TARP’s 

investments in banks. By the end of 

FY 2013, taxpayers had recovered a total of 

$273.4 billion in repayments and other 

income - more than $27.9 billion above the 

total funds that were invested under TARP’s 

bank programs. The FY 2015 Budget 

estimates that excluding assistance to 

distressed homeowners, taxpayers will 

realize a positive net return of $15 billion 

from TARP investments and additional 

Treasury AIG support. 

Stabilizing the Housing Market 

Using authority granted under the 

Emergency Economic Stabilization Act 

(EESA), Treasury established two central 

housing programs under TARP, the Making 

Home Affordable (MHA) program and the 

Hardest Hit Fund (HHF). Treasury also 

used its authority to support the Federal 

Housing Administration’s (FHA) Short 

Refinance Program. Combined, Treasury 

committed $38.5 billion to fund these 

housing programs under TARP. MHA and 

HHF have disbursed over $9.5 billion from 

inception through the end of FY 2013. 

More funds are expected to be disbursed 

over time as incentive payments are made 

for current participants and new 

homeowners entering into the programs. 

Terrorism Risk Insurance Program 

In order to preserve the long-term 

availability and affordability of property and 

Department of the Treasury - Budget in Brief 4
casualty insurance for terrorism risk, the 

Budget proposes to extend the Terrorism 

Risk Insurance Program and to implement 

programmatic reforms to limit taxpayer 

exposure and achieve cost neutrality.

Treasury Strategic Goal: Enhance U.S. 

Competitiveness and Job Creation, and 

Promote International Financial Stability 

and More Balanced Global Growth 

Encouraging International Economic 

Growth and Stability 

Treasury works bilaterally and multilaterally 

to foster strong, sustainable, and balanced 

global growth; to support free trade and 

open markets; to promote a level playing 

field for U.S. financial institutions; to 

maintain stable international financial 

markets; to encourage foreign investment in 

the United States while protecting national 

security; and to use our leadership positions 

in the International Financial Institutions in 

pursuit of U.S. policy goals. The 

Department’s operating account request 

includes funding for Treasury to continue 

advancing these economic and national 

security policy priorities around the world. 

The Department’s $2.6 billion FY 2015 

International Programs budget request 

provides a cost-effective way to promote our 

national security, support the next 

generation of export markets, and address 

key global challenges like environmental 

degradation and food security, while 

fostering private sector development and 

entrepreneurship. The FY 2015 request 

includes funding for capital increases and 

replenishments at the MDBs as well as 

contributions to several targeted trust funds 

and funding for Treasury’s Office of 

Technical Assistance. 

Finally, the request seeks to implement the 

2010 International Monetary Fund (IMF) 

agreement. In 2010, G-20 Leaders and the 

IMF membership decided on a set of quota 

and governance reforms designed to 

enhance IMF effectiveness. The United 

States successfully achieved its negotiating 

priorities in this process, (1) a U.S. quota 

increase with a simultaneous and equivalent 

roll back in our participation in the IMF’s 

New Arrangements to Borrow, representing 

no new financial commitment to the IMF; 

and, (2) preservation of the unique U.S. veto 

in the IMF. Implementation of the 2010 

reforms is necessary to prevent a loss of 

U.S. influence in the IMF. 

Treasury Strategic Goal: Fairly and 

Effectively Reform and Modernize 

Federal Financial Management, 

Accounting, and Tax Systems 

The Fiscal Service 

Treasury continues to invest in ways to 

improve the government’s ability to collect 

delinquent debt across all agencies, enhance 

program integrity, and return greater 

resources to taxpayers. Given its financial 

management expertise and leadership, the 

Fiscal Service will work with other agencies 

to improve USAspending.gov, the 

government’s website designed to share data 

on Federal spending. The Budget also 

requests support from the new Opportunity, 

Growth, and Security Initiative to improve 

USAspending.gov’s appearance and 

functionality for policy makers and the 

public. 

Internal Revenue Service 

The IRS plays a unique role in government, 

and resources invested in the agency 

represent a smart investment for the nation’s 

taxpayers, returning many times their cost in 

the form of increased revenue. In recent 

years, the lack of sufficient funding for the 

IRS continues to have major implications for 

taxpayers and the tax system. As a result, 

Department of the Treasury - Budget in Brief 5
taxpayers face longer wait times on the 

phone, and it takes longer to respond to 

taxpayer correspondence. A sustained 

deterioration in taxpayer service combined 

with reduced enforcement activity could 

create serious long-term risk for the U.S. tax 

system, which is based on voluntary 

compliance. The IRS supports voluntary 

compliance by addressing millions of 

taxpayers’ questions in their efforts to 

comply with the law and is an integral 

component of IRS’s compliance activities. 

For example, during the 2013 tax season, 

IRS taxpayer service representatives 

answered over 30.1 million phone calls in 

addition to 54 million calls answered 

through automation. Approximately 98 

percent of IRS tax collections in FY 2012 

resulted from voluntary payments made by 

taxpayers. Because the IRS collects more 

than 90 percent of all federal tax receipts 

each year, even a small decline in voluntary 

compliance could have a noticeable impact 

on revenue. 

The FY 2015 Budget provides the IRS with 

$12 billion in base discretionary resources to 

invest in improving service to tens of 

millions of taxpayers, reducing the deficit 

through more effective enforcement of tax 

laws, including IT systems ready to meet the 

challenges of the 21st Century tax system, 

and fully funding the implementation of the 

Affordable Care Act. The Budget also 

proposes a $480 million cap adjustment to 

support program integrity efforts aimed at 

improving enforcement of current tax laws 

and reducing the tax gap. This multi-year 

effort is expected generate $52 billion in 

additional revenue over the next 10 years at 

a cost of just over $17 billion, thereby 

reducing the deficit by $35 billion. The 

targeted investments made in FY 2015 will 

generate over $2 billion in annual revenue 

once fully operationalized in FY 2017, 

returning nearly $6 to the Treasury for every 

dollar invested. 

The Budget also provides $330.2 million for 

the Business Systems Modernization 

Program to invest strategically in state-ofthe art capabilities, such as online taxpayer 

services, that utilize and leverage the 

database infrastructure that is now in place. 

In addition to the Taxpayer Service request 

within the discretionary caps, the Budget 

requests resources from the new 

Opportunity, Growth, and Security Initiative 

to support additional IRS customer service 

improvements, including increasing toll-free 

telephone level of service by 11 percentage 

points to over 80 percent, driving 

responsiveness to taxpayers through 

correspondence inventory reduction, and 

bolstering resources to help tackle more 

highly burdensome identity theft and refund 

fraud cases. 

Restoring Gulf Coast Communities 

The Resources and Ecosystems 

Sustainability, Tourist Opportunities, and 

Revived Economies of the Gulf Coast States 

Act of 2012 (RESTORE Act) established the 

Gulf Coast Restoration Trust Fund (Trust 

Fund) to maintain the civil and 

administrative penalties arising from the 

Deepwater Horizon oil spill. Treasury 

serves oversight, administrative, 

compliance, and audit roles to help ensure 

that funds are expended as required by the 

RESTORE Act, and will work with the 

newly established Gulf Coast Restoration 

Council to administer these funds in 

supporting economic and environmental 

restoration in the Gulf Coast region. The 

Budget proposes legislation that will allow 

Departmental Offices to draw resources 

from the Trust Fund to carry out its 

responsibilities.

Department of the Treasury - Budget in Brief 6
Treasury Strategic Goal: Safeguard the 

Financial System and Use Financial 

Measures to Counter National Security 

Threats 

The Office of Terrorism and Financial 

Intelligence (TFI), within the Departmental 

Offices, oversees and marshals Treasury’s 

intelligence, enforcement, and economic 

sanctions functions in support of U.S. 

national security policies and interests and 

with the twin aims of safeguarding financial 

systems against illicit use and combating 

rogue nations, terrorist facilitators, money 

launderers, drug kingpins, proliferators of 

weapons of mass destruction, and other 

national security threats. The Budget 

provides $105.9 million, an increase of $3.9 

million from FY 2014, to support TFI’s 

efforts. 

Successful Implementation of 

International Sanctions 

In FY 2013, the Office of Foreign Assets 

Control (OFAC) tallied over 500 actions 

under its sanctions authorities in its efforts 

to disrupt and dismantle the financial 

networks that support weapons of mass 

destruction proliferators, terrorists, narcotics 

traffickers, and transnational organized 

crime, and target certain foreign regimes in 

support of U.S. national security, foreign 

policy, and economic interests. In particular, 

OFAC conducted a sustained sanctions 

campaign against Iran, its agents, and its 

front companies in response to Iran’s 

continued defiance of various United 

Nations Security Council resolutions related 

to its nuclear program. As a result, banks 

around the world have continued cutting off 

Iran from the international financial sector; 

this isolation has played an essential role in 

bringing Iran to the negotiating table. 

Collection of Major Asset Forfeitures 

Supports Deficit Reduction 

The Treasury Forfeiture Fund received over 

$1.7 billion in forfeitures and recoveries in 

FY 2013. The success of Treasury’s asset 

forfeiture program allows the Department to 

make priority investments in law 

enforcement and national security, without 

requesting additional resources from 

taxpayers. Further, it enables Treasury to 

contribute to deficit reduction with a 

proposed permanent cancellation of $950 

million from the Forfeiture Fund’s 

unobligated balances. 

Improving the Cybersecurity of Our 

Nation’s Financial Sector

Cyber risks to financial institutions and 

markets are growing in both frequency and 

sophistication. Working with a combination 

of government, non-government, and private 

sector partners, both international and 

domestic, Treasury seeks to improve the 

protection and resilience of financial sector 

from cyber and physical attacks. In 

addition, the Budget proposes an increase of 

$10.9 million for investments in enhancing 

Treasury’s cyber-preparedness. 

Treasury Strategic Goal: Create a 21stCentury Approach to Government by 

Improving Efficiency, Effectiveness, and 

Customer Interaction 

Treasury will continue to manage Treasury’s 

resources as effectively and efficiently as 

possible, creating the best value for all 

constituents. 

Treasury has implemented a multi-pronged 

effort to expand the use of electronic 

transactions in conducting the business of 

government, including through electronic 

payroll savings bonds, electronic benefit 

payments, and electronic tax collection. 

These efforts have resulted in reduced costs, 

Department of the Treasury - Budget in Brief 7
improved customer service, and decreased 

susceptibility to fraud. The Department’s 

“Paperless Treasury” initiative has saved the 

government hundreds of millions of dollars 

through electronic payment of benefits and 

increases in the electronic filing (e-file) rate 

for tax returns. The IRS’s e-file program 

has been highly successful, saving the 

Department millions of dollars every year. 

A current IRS focus is on efforts to expand 

web based services to introduce self-service 

and electronic-service taxpayer options to 

enable taxpayers to securely authenticate, 

view and print tax records online, pay 

outstanding debts and enter into installment 

agreements, establish a power of attorney, 

get tax law information, and easily access all 

parts of IRS.gov. This effort will deliver the 

enabling infrastructure and next wave of 

digital services to allow taxpayers to 

navigate the tax system, understand and 

meet their tax obligations, and conduct their 

business in the most efficient and effective 

manner. 

Increase Shared Services 

Treasury will continue to focus on achieving 

cost savings for American taxpayers, 

modernizing operations, and increasing 

productivity by governing strategically, 

working smarter, and leveraging technology. 

Increasing the use of shared services and 

better leveraging strategic sourcing for 

federal procurement will help achieve these 

goals.

Assesses the Future of Currency, 

including the Penny

The production and circulation of currency 

in the United States have been largely 

unchanged for decades, despite the growth 

in electronic financial transactions. 

Treasury is undertaking a comprehensive 

review of U.S. currency, including a review 

of both the production and use of coins, in 

order to efficiently promote commerce in the 

21st century. These studies will analyze 

alternative metals, Mint facilities, and 

consumer behavior and preferences, and will 

result in the development of alternative 

options for the penny and the nickel. 

Savings Proposals 

As a result of Treasury’s ongoing efforts to 

improve efficiency, reduce costs and 

streamline operations; the Department has 

been able to propose over $1.1 billion in 

savings in its budget submissions over the 

past four years. For example, the IRS 

implemented administrative cost savings by 

limiting employee travel and training to 

mission-critical projects. Training costs 

have been reduced by 83 percent and 

training-related travel costs by 87 percent 

between 2010 and 2013. 

Treasury’s FY 2015 request includes 

efficiency savings and program reductions 

of $154.2 million. Treasury’s bureaus have 

found savings from, the Paperless Treasury 

initiative at the Fiscal Service, increased efiling savings at the IRS, and administrative 

efficiencies across multiple bureaus. 

Department of the Treasury - Budget in Brief 8
FY 2015 President's Budget by Strategic Goal 

(Dollars in Thousands)

Enhance U.S. competitiveness Promote domestic economic Fairly and effectively reform Safeguard the financial system Create a 21st-century approach and job creation, and promote growth and stability while and modernize federal financial and use financial measures to to government by improving international financial stability Total Treasury Goal/Objective continuing reforms of the management, accounting, and counter national security efficiency, effectiveness and and more balanced global financial system tax systems threats customer interaction growth

Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $

Management & Financial 482,094 33,490 81,049 13,326 496,723 239,328 238,305 45,429 18,037 3,641 1,316,208 335,213 

Departmental Offices Salaries and Expenses 62,654 10,881 81,049 13,326 41,075 10,226 108,644 31,429 15,312 3,641 308,734 69,502 

Department-wide Systems and Capital Investments Program 2,725 2,725 0 

Office of Inspector General 14,351 2,000 21,000 11,000 35,351 13,000 

Treasury Inspector General for Tax Administration 157,419 1,500 157,419 1,500 

Special Inspector General for TARP 34,234 34,234 0 

Community Development Financial Institutions Fund 224,900 112 224,900 112 

Financial Crimes Enforcement Network 108,661 3,000 108,661 3,000 

Alcohol and Tobacco Tax and Trade Bureau 46,060 3,061 49,940 3,451 96,000 6,512 

Bureau of the Fiscal Service 114,246 19,436 233,938 222,151 348,184 241,587 

Tax Administration 0 0 0 0 12,476,527 101,419 0 0 0 0 12,476,527 101,419 

IRS Taxpayer Services 2,317,633 40,212 2,317,633 40,212 

IRS Enforcement 5,371,826 32,446 5,371,826 32,446 

IRS Operations Support 4,456,858 28,761 4,456,858 28,761 

Business Systems Modernization 330,210 330,210 0 

Total, Treasury Appropriations Committee 482,094 33,490 81,049 13,326 12,973,250 340,747 238,305 45,429 18,037 3,641 13,792,735 436,632 

Treasury International Programs 2,610,005 2,610,005 0 

Total, Appropriated Level 482,094 33,490 2,691,054 13,326 12,973,250 340,747 238,305 45,429 18,037 3,641 16,402,740 436,632 

Non-Appropriated Bureaus 207,753 5,502,795 0 0 0 0 0 33,112 0 0 207,753 5,535,907 

Office of Financial Stability (Administrative Account) 183,640 183,640 0 

Small Business Lending Fund Program (Administrative) 17,361 17,361 0 

State Small Business Credit Initiative (Administrative) 6,752 6,752 0 

Financial Stability Oversight Council 20,372 0 20,372 

Office of Financial Research 91,749 0 91,749 

Bureau of Engraving and Printing 748,592 0 748,592 

United States Mint 3,571,451 0 3,571,451 

Office of the Comptroller of the Currency 1,070,631 33,112 0 1,103,743 

Subtotal, Direct $ 689,847 2,691,054 12,973,250 238,305 18,037 16,610,493 

Subtotal, Reimbursable $ 5,536,285 13,326 340,747 78,541 3,641 5,972,539 

Total, Treasury Level 6,226,131 2,704,380 13,313,997 316,846 21,677 22,583,032 

1/ Total does not include the proposed $950 million Forfeiture Fund permanent cancellation. 

Department of the Treasury - Budget in Brief 9
Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing

(Direct and Reimbursable)

 2013 Actual 2014 Enacted 2015 President's Budget

Appropriation Direct Reimb. Total Direct Reimb. Total Direct Reimb. Total

Departmental Offices Salaries and Expenses 1,189 125 1,314 1,171 132 1,303 1,188 132 1,320

Office of Inspector General 164 14 178 194 19 213 194 19 213

Treasury Inspector General for Tax Administration 772 2 774 835 2 837 835 2 837

Special Inspector General for TARP 168 0 168 192 0 192 192 0 192

Community Development Financial Institutions Fund 76 0 76 76 0 76 73 0 73

Financial Crimes Enforcement Network 300 2 302 345 1 346 345 1 346

Alcohol and Tobacco Tax and Trade Bureau 466 10 476 473 9 482 508 9 517

Bureau of the Fiscal Service 1,660 523 2,183 1,676 714 2,390 1,636 714 2,350

Internal Revenue Service 85,881 786 86,667 84,189 822 85,011 91,187 822 92,009

Subtotal, Treasury Appropriated Level 90,676 1,462 92,138 89,151 1,699 90,850 96,158 1,699 97,857

Office of Financial Stability (Administrative Account) 116 25 141 103 0 103 86 0 86

Small Business Lending Fund Program 24 0 24 19 6 25 19 6 25

State Small Business Credit Initiative 11 0 11 14 0 14 12 0 12

Financial Stability Oversight Council 0 23 23 0 25 25 0 26 26

Office of Financial Research 0 109 109 0 215 215 0 249 249

Treasury Franchise Fund 0 1,384 1,384 0 1,618 1,618 0 1,836 1,836

Bureau of Engraving and Printing 0 1,890 1,890 0 1,925 1,925 0 1,944 1,944

United States Mint 0 1,705 1,705 0 1,874 1,874 0 1,874 1,874

Office of the Comptroller of the Currency 0 3,822 3,822 0 3,953 3,953 0 3,997 3,997

Terrorism Insurance Program 6 0 6 10 0 10 10 0 10

Total 90,833 10,420 101,253 89,297 11,315 100,612 96,285 11,631 107,916

1/ In a few cases FTE numbers have been updated since data entry was completed in the OMB database. The numbers presented in this table are the most current 

estimates. 

2/ A portion of Fiscal Service’s Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt Collection Improvement Act (DCIA) of 1996. 

3/ IRS FY 2013 Actuals do not include 676 FTE funded from User Fees and 5 FTE from the Federal Highway Transportation Authority Account; IRS FY 2014 

Enacted and FY 2015 Request do not include 676 FTE funded from User Fees and 5 FTE from the Federal Highway Transportation Authority Account. 

Department of the Treasury - Budget in Brief 10
Summary of FY 2015 Increases and Decreases

(Dollars in Thousands)

 Offsetting Fees/

 Fiscal Cancellations/

 DO DSCIP OIG TIGTA SIGTARP CDFI FinCEN TTB Service IRS Total Rescissions

FY 2014 Enacted $312,400 $2,725 $34,800 $156,375 $34,923 $226,000 $112,000 $99,000 $360,165 $11,290,612 $12,629,000 ($836,000)

Adjustment to Request $0 $0 $0 $0 $0 $0 $0 ($2,000) $0 $0 ($2,000) $0

Maintaing Current Levels (MCLs) $5,812 $0 $551 $2,898 $823 $462 $1,987 $1,824 $7,469 $223,177 $245,003 $0

Non-Recurring Costs ($16,975) ($2,725) $0 $0 $0 $0 ($4,146) $0 ($11,064) ($92,000) ($126,910) $0

Efficiency Savings ($2,960) $0 $0 ($1,854) ($1,512) $0 $0 ($2,824) ($8,386) ($95,200) ($112,736) $0

Transfers $3,340 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,340 $0

Adjustments to Base ($10,783) ($2,725) $551 $1,044 ($689) $462 ($2,159) ($3,000) ($11,981) $35,977 $6,697 $0

FY 2015 Base $301,617 $0 $35,351 $157,419 $34,234 $226,462 $109,841 $96,000 $348,184 $11,326,589 $12,635,697 ($836,000)

Program Decreases $0 $0 $0 $0 $0 ($19,498) ($1,180) ($5,000) $0 $0 ($25,678) $0

Program Reinvestments $0 $0 $0 $0 $0 $0 $0 $0 $0 $16,025 $16,025 $0

Program Increases $7,117 $2,725 $0 $0 $0 $17,936 $0 $5,000 $0 $1,133,913 $1,166,691 $0

Subtotal, Program Changes $7,117 $2,725 $0 $0 $0 ($1,562) ($1,180) $0 $0 $1,149,938 $1,157,038 $0

Change to Offsetting 

Fees/Cancellations/Rescissions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($114,000)

FY 2015 President's Budget $308,734 $2,725 $35,351 $157,419 $34,234 $224,900 $108,661 $96,000 $348,184 $12,476,527 $13,792,735 ($950,000)

1/ Total resources for FY 2015 includes a $950 million Forfeiture Fund cancellation. 

2/ Total Efficiency Savings for Treasury is $129 million. BEP and Mint savings of $15.750 million is not reflected in the chart above. 

Total, Treasury

Appropriations

Committee

$11,793,000

($2,000)

$245,003

($126,910)

($112,736)

$3,340

$6,697

$11,799,697

($25,678)

$16,025

$1,166,691

$1,157,038

($114,000)

$12,842,735

Department of the Treasury - Budget in Brief 11
Department of the Treasury - Budget in Brief 12
Departmental Offices 

Program Summary by Budget Activity 

Dollars in thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Level Enacted Request $ Change % Change

Executive Direction $35,763 $36,738 $37,934 $1,196 3.26%

International Affairs and Economic Policy $56,804 $56,113 $57,542 $1,429 2.55%

Domestic Finance and Tax Policy $68,351 $80,956 $68,703 ($12,253) -15.14%

Terrorism and Financial Intelligence $96,116 $102,000 $105,930 $3,930 3.85%

Treasury-wide Management and Programs $35,223 $36,593 $38,625 $2,032 5.55%

Subtotal, Departmental Offices - S & E $292,257 $312,400 $308,734 ($3,666) -1.17%

Offsetting Collections - Reimbursables $69,502 $69,502 $69,502 $0 0.00%

Total Program Operating Level $361,759 $381,902 $378,236 ($3,666) -0.96%

Direct FTE 1,187 1,171 1,188 17 1.45%

Reimbursable FTE 132 132 132 0 0.00%

Total FTE 1,319 1,303 1,320 17 1.30%

Summary 

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, by promoting the 

stability of the nation’s financial markets, and 

by ensuring the Government’s ability to collect 

revenue and fund its operations. 

 

The FY 2015 budget request supports DO’s 

leading role in accomplishing the Treasury 

strategic goals: 

 Promote domestic economic growth and 

stability while continuing reforms of the 

financial system 

 Enhance U.S. competitiveness and job 

creation, and promote international 

financial stability and more balanced 

global growth 

 Fairly and effectively reform and 

modernize Federal financial management, 

accounting, and tax systems 

 Safeguard the financial system and use 

financial measures to counter national 

security threats 

 Create a 21st-century approach to 

Government by improving efficiency, 

effectiveness, and customer interaction 

Total resources requested to support DO 

activities for FY 2015 are $378,236,000, 

including $308,734,000 from direct 

appropriations and $69,502,000 from 

offsetting collections and reimbursable 

programs. 

 

Department of the Treasury - Budget in Brief 13
DO FY 2015 Budget Highlights 

Dollars in Thousands

Departmental Offices - S & E FTE Amount

FY 2014 Enacted 1,171 $312,400

Changes to Base:

Maintaining Current Levels (MCLs): - $5,812

Pay-Raise - $2,192

FERS Contribution Increase - $1,703

Non-Pay - $1,917

Non-Recurring Costs: - ($16,975)

RESTORE Act - ($7,400)

Financial Capability Innovation Fund - ($5,000)

State Small Business Credit Initiative - ($2,000)

Treasury Evidence and Evaluation (incl. 

Intl Affairs Evaluator) - ($1,500)

Recovery Act Program - ($1,075)

Efficiency Savings: - ($2,960)

Management and Administrative 

Savings and Reductions - ($1,573)

TFI Contracts and Background 

Investigations - ($714)

Policy Office Savings and Reductions - ($486)

Policy Office Workforce Optimization - ($187)

Transfers: 7 $3,340

Insider Threat Monitoring 7 $3,340

Subtotal Changes to Base 7 ($10,783)

Total FY 2015 Base 1,178 $301,617

Program Changes:

Program Increases: 10 $7,117

Treasury Attaché increasing ICASS 

Fees - $1,017

Government Security Operations Center 4 $3,500

DO LAN Cybersecurity Improvements 6 $2,600

Total FY 2015 Request 1,188 $308,734

FY 2015 Budget Adjustments 

Maintaining Current Levels (MCLs) 

Pay-Raise +$2,192,000 / +0 FTE 

Funds are requested for the January 2015 payraise and the annualization of the 2014 payraise. 

FERS Increase +$1,703,000 / +0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$1,917,000 / +0 FTE 

Funds are requested for non-labor expenses 

such as GSA rent adjustments, postage, 

supplies, and equipment. 

Non-Recurring Costs 

RESTORE Act -$7,400,000 / +0 FTE 

In FY 2015, the Department proposes 

legislative language to allow Treasury to draw 

$9.5 million from the Gulf Coast Restoration 

Trust Fund, for management of the fund, 

including administering the civil and 

administrative penalties arising from the Deep 

Water Horizon oil spill, supporting 

environmental and economic restoration of the 

Gulf Coast region and standing up grants, 

compliance, and audit programs. 

Financial Capability Innovation Fund 

-$5,000,000 / +0 FTE 

Non-recurrence of a one-time FY 2014 

investment in financial access and financial 

capabilities tool development targeted to lowand moderate-income persons. 

State Small Business Credit Initiative 

-$2,000,000 / +0 FTE 

Non-recurrence of funds for the State Small 

Business Credit Initiative that were 

reprogrammed in FY 2014 in order to fund 

TFI at the appropriated level. 

Treasury Evidence and Evaluation (incl. Intl 

Affairs Evaluator) -$1,500,000 / +0 FTE 

Non-recurrence of a one-time investment in 

research, evidence, and evaluation in the areas 

of financial education, financial access, and 

performance improvement. 

Recovery Act Program -$1,075,000 / +0 FTE 

Non-recurrence of contract costs for 

processing applications associated with 

Section 1603 of the Recovery Act. This 

program provides grants in lieu of tax credits 

for qualified energy properties. The 

application window closed in FY 2013, but 

applicants have until December 2016 to finish 

construction and claim a payment. Starting in 

FY 2015, Treasury will incrementally wind 

down this program resulting in funding 

reductions. 

Department of the Treasury - Budget in Brief 14
Efficiency Savings 

Management and Administrative Savings and 

Reductions -$1,573,000 / +0 FTE 

DO Management has streamlined contracts in 

its emergency preparedness program, resulting 

in $456,000 in savings. Management also 

expects an $828,000 reduction in building 

support services, largely from savings realized 

as a result of proactive infrastructure 

investments. These include utility savings 

from installing energy efficient heating and 

ventilation equipment in the Main Treasury 

and Treasury Annex buildings and buildingrelated maintenance contract savings. 

Management will also save $133,000 from a 

reduced Federal Employees' Compensation 

Act payment to the Department of Labor, and 

a $156,000 reduction to training, subscriptions, 

and other contractual efficiencies. 

TFI Contracts -$714,000 / +0 FTE 

DO will achieve cost savings and efficiencies 

in TFI contract services through more efficient 

oversight of all TFI contracts, consolidating 

contracts where appropriate, and partnering 

with other agencies and DO components to 

leverage common technology or administrative 

support needs. 

Policy Office Savings and Reductions 

-$486,000 / +0 FTE 

The Office of Terrorism and Financial 

Intelligence and the Office of Domestic 

Finance will achieve efficiencies through 

adjustments to travel and operational costs. 

This reduction can be taken with no significant 

mission impact. 

Policy Office Workforce Optimization 

-$187,000 / +0 FTE 

The Office of International Affairs and the 

Office of Domestic Finance will achieve 

savings through re-structuring to include 

filling positions at lower grade levels and 

expanding use of term appointments. These 

reductions can be taken with no significant 

mission impact. 

Transfers 

Insider Threat Monitoring 

+$3,340,000 /+7 FTE 

Funds will be transferred from the Office of 

the Director of National Intelligence to the 

Office of Terrorism and Financial Intelligence 

to support an Insider Threat Monitoring 

program. Executive Order 13587 and the 

President’s Insider Threat Policy and 

Minimum Standards, signed in November 

2012, requires that agencies establish a 

program for deterring, detecting, and 

mitigating insider threats by leveraging 

counterintelligence, security, information 

assurance, and other relevant functions and 

resources to identify and counter the insider 

threat. 

Program Increases 

Treasury Attaché increasing ICASS Fees 

+$1,017,000 / +0 FTE 

This investment will fund the increase in fees 

for International Cooperative Administrative 

Support Services (ICASS) program, including 

new mandatory participation in the ICASS 

furniture and appliance pools, beginning in FY 

2015. Treasury currently has several locations 

that will be required to subscribe to this 

ICASS service at the projected cost of 

$513,000. In addition, the cost of maintaining 

a Treasury Financial Attaché in Iraq will 

increase by an estimated $504,000 from FY 

2014, as ICASS will be fully established at the 

U.S. Embassy in Baghdad. Funding this 

request in full will allow Treasury to retain its 

Financial Attaché presence overseas. 

Government Security Operations Center 

+$3,500,000 / +4 FTE 

Government Security Operations Center 

(GSOC) currently serves as the Department 

wide cyber incident response organization, 

responsible for monitoring, detection, and 

Department of the Treasury - Budget in Brief 15
incident response and has the responsibility for 

monitoring the Department’s Trusted Internet 

Connections and Managed Trusted Internet 

Protocol Service gateways. It works in 

coordination with Bureau security 

organizations to defend against traditional and 

advanced cyber-attacks directed at the 

Department’s systems and users; most notably 

advanced phishing-type attacks. GSOC serves 

as the coordination point for threat data 

sharing with other Federal agency Security 

Operations Centers. Funds will be used, in 

part, to recruit technical analysts focused on 

data mining to analyze the technical aspects of 

Treasury-specific cyber-attacks in order to 

formulate detection, actionable defense, and 

mitigation strategies, which are generally 

outside the scope of the analytical work 

performed elsewhere in the Department. 

Funds will also support security intelligence 

analysis and advance cyber threat detection. 

DO LAN Cybersecurity Improvements 

+$2,600,000 / +6 FTE 

Provides comprehensive network access 

control to mitigate cybersecurity risks against 

the DO Local Area Network (LAN). The DO 

LAN is the primary computing network used 

by DO. It does not contain classified 

information, but it does contain a high volume 

of sensitive information. The DO LAN is also 

connected to the Internet, which makes it a 

susceptible target for cyber-criminals. Its 

current cybersecurity features are robust but 

require continuous strengthening to address 

the ever-increasing worldwide cyber threat. 

Funds will support hardware, system audit, 

and monitoring software, password 

management software, and FTEs. 

Explanation of Budget Activities 

Executive Direction ($37,934,000 from direct 

appropriations, $4,530,000 from 

reimbursable resources) 

Provides direction and policy guidance to the 

Department, and interacts with Congress and 

the public on departmental policy matters.

International Affairs and Economic Policy 

($57,542,000 from direct appropriations, 

$1,747,000 from reimbursable resources) 

Monitors domestic and international economic 

conditions and collects and analyzes financial 

data.

Domestic Finance and Tax Policy 

($68,703,000 from direct appropriations, 

$17,560,000 from reimbursable resources) 

Monitors and provides economic and financial 

policy expertise in the areas of domestic 

finance and tax policy. 

Terrorism and Financial Intelligence 

($105,930,000 from direct appropriations, 

$31,992,000 from reimbursable resources) 

Develops and implements strategies to counter 

terrorist financing and money laundering. 

Treasury-wide Management and Programs 

($38,625,000 from direct appropriations, 

$13,673,000 from reimbursable resources) 

Provides strategic plans and policy direction in 

the fields of human resources, information 

technology security, and financial 

administration that include the formulation and 

management of the budget.

Legislative Proposals

Departmental Offices has no legislative 

proposals. 

Department of the Treasury - Budget in Brief 16
New Mandatory Program Proposals

Pay for Success

Treasury proposes $300 million in one-time 

funding for a mandatory Pay for Success 

Incentive Fund, which non-profit 

intermediaries and state and local governments 

will be able to leverage to provide credit 

enhancements and success-based payments to 

investors in public programs. Pay for Success 

leverages philanthropic and private dollars to 

fund services up front, with the Government 

paying after they generate results. The Fund is 

designed to encourage innovation and 

evidence-based approaches to improve 

outcomes and reduce Government costs across 

a range of program areas. 

Terrorism Risk Insurance Program 

In order to preserve the long-term availability 

and affordability of property and casualty 

insurance for terrorism risk, the Budget 

proposes to extend the Terrorism Risk 

Insurance Program and to implement 

programmatic reforms to limit taxpayer 

exposure and achieve cost neutrality.

DO Performance by Budget Activity

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2013 FY 2014 FY 2015

Actual Actual Target Actual Target Target

International Affairs and 

Economic Policy

Monitor Quality and Enhance 

Effectiveness of International 

Monetary Fund (IMF) Lending 

Through Review of IMF Country 

Programs 

100 100 100 100 100 100

Domestic Finance and Tax 

Policy

Variance Between Estimated and 

Actual Receipts (Annual Forecast)

4.4 3.8 4.5 2.5 4.25 4.25

Terrorism and Financial 

Intelligence

Impact of TFI Programs and 

Activities

7.6 8.1 8.3 8.3 8.5 8.5

Treasury-wide 

Management and 

Programs

Percent of Procurement Dollars 

Spent On Small Business

34.51 38.52 32.00 39.15 35.07 N/A

Key: DISC - Discontinued and B – Baseline

Description of Performance

The following performance measures provide 

a snapshot of the FY 2015 DO performance 

plan: 

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 (100.0) was met in FY 2013. In 

FY 2014 and 2015, IA’s target for this measure 

will remain at 100 percent. 

Variance Between Estimated and Actual 

Receipts (Annual Forecast): As part of 

managing the Government’s central operating 

account and cash position, the 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. The actual 

variance for FY 2013 was 2.5 percent, 

significantly lower than the 4.5 percent target 

for FY 2013 and a 1.3 percentage point 

improvement over FY 2012. The target for 

FY 2014 and FY 2015 is 4.25 percent. 

Impact of TFI Programs and Activities: In 

order to gauge its performance, TFI created a 

composite measure consisting of three 

program office focus areas related to its 

Department of the Treasury - Budget in Brief 17
mission and strategic goals, including 

customer outreach, increasing budget 

production of intelligence products, and 

implementing IT modernization projects. TFI 

exceeded its performance target on this 

composite measure. The FY 2015 goal for this 

metric is 8.5. 

Treasury-wide Percentage of Procurement 

Dollars Spent On Small Business: This goal 

measures the percentage of procurement 

dollars obligated toward small businesses (or 

Treasury’s overall small business goal) and 

highlights Treasury’s efforts to ensure that 

small businesses have the maximum 

practicable opportunity to provide goods and 

services to the Federal Government. Based on 

preliminary data, Treasury achieved 39.15 

percent on its overall small business goal, 

exceeding its FY 2013 target. Treasury will 

continue to employ the successful strategies of 

targeted outreach, enhanced leadership 

accountability, new policies, new tools and 

resources, and increased intra-agency 

communication to achieve its overall small 

business goal in FY 2014 of 35.07 percent. 

The FY 2015 goal has not yet been set.

Department of the Treasury - Budget in Brief 18
Department-wide Systems and Capital Investments Program

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Level Enacted Request $ Change % Change

Department-wide Systems and Capital 

Investments Program $0 $2,725 $2,725 $0 0.00%

Total Program Operating Level $0 $2,725 $2,725 $0 0.00%

Total FTE 0 0 0 0 NA

Summary 

The Department-wide Systems and Capital 

Investments Program (DSCIP) is authorized to 

be used by or on behalf of the Treasury 

Department’s bureaus, at the Secretary’s 

discretion, to improve infrastructure, 

modernize business processes, and increase 

efficiency through technology investments. 

DSCIP FY 2015 Budget Highlights 

Dollars in Thousands

Department-wide Systems and Capital 

Investments Program FTE Amount

FY 2014 Enacted - $2,725

Changes to Base:

Non-Recurring Costs: - ($2,725)

Zero-Base Budget - ($2,725)

Subtotal Changes to Base - ($2,725)

Total FY 2015 Base - -

Program Changes:

Program Increases: - $2,725

Data Leakage Protection System - $1,500

Rain Leader Repair and Window Repair 

and Replacement - $1,225

Total FY 2015 Request - $2,725

FY 2015 Budget Adjustments 

Non-Recurring Costs 

Zero Base Budget -$2,725,000 / +0 FTE 

DSCIP appropriations are one-time funding 

and do not recur. 

Program Increases 

Data Leakage Protection System 

+$1,500,000/ +0 FTE

Funds in the amount of $1,500,000 are 

requested for specialized technical services to 

implement a Data Leakage Protection (DLP) 

tool at non-IRS internet perimeter points. The 

DLP will examine data, including e-mail being 

sent from the Department, to identify whether 

any sensitive data, such as personally 

identifiable or classified information, are being 

inadvertently transmitted. It will then alert 

users and/or prohibits the transmission. DLP 

will support Treasury’s implementation of the 

Administration’s Controlled Unclassified 

Information (CUI) directive (See E.O. 13556) 

by examining data for CUI that should not 

leave the Treasury’s networks or that should 

be encrypted prior to sending. DLP will also 

support the Administration’s efforts to 

improve insider threat detection by more 

closely monitoring the types of data being sent 

out of Treasury’s networks. Treasury will be 

able to implement a DLP at a low cost by 

leveraging an existing IRS commercial 

product license, which was procured for 

Department-wide use and is already being 

implemented on the Trusted Internet 

Connections (TICs) at IRS. This investment 

will allow implementation at both of 

Treasury’s non-IRS TICs and the 

configuration of the system to accommodate 

all other Treasury Bureaus. There are no 

expected out-year costs. 

Rain Leader Repair and Window Repair and 

Replacement +$1,225,000 / +0 FTE

Funding is requested to line the interior rain 

leaders of the Main Treasury Building with a 

neoprene compound, and to repair and replace 

damaged windows, some of which are original 

to the building, to prevent water damage to 

Department of the Treasury - Budget in Brief 19
other structural components. Rain leaders are 

vertical sections of cast iron pipe within the 

exterior walls of the Main Treasury Building 

designed to carry rainwater off the roof and 

into storm drains. The rain leaders in Main 

Treasury are estimated to be 150 years old. 

The cast iron composition has failed over time 

by rusting from the inside out. The 

deteriorated state of the rain leaders causes 

regular leaks from water penetrating the 

building shell and being absorbed by the 

plaster walls and the substrate below. The 

continued water intrusion results in routine and 

lengthy repairs to the tenant spaces. Lining 

the rain leaders with a neoprene compound 

will minimize existing leaks and possibly 

abate them in totality, thereby reducing 

maintenance problems. In addition to rain 

leader repairs, the windows in the Main 

Treasury building have exceeded their life 

cycle. There are over 600 wooden frame 

windows in the Main Treasury building, some 

of which are also estimated to be over 150 

years old. The window frames are 

experiencing paint failure and varying degrees 

of damage to the wood from weather exposure. 

Funding is requested to address the cyclical 

painting and repair of the frames. These 

investments are critical for the basic 

maintenance and preservation of the historic 

Main Treasury Building. 

Explanation of Budget Activities 

Department-wide Systems and Capital 

Investments Program ($2,725,000 from direct 

appropriations) 

The purpose of DSCIP funds is to modernize 

business processes and increase efficiencies 

within Treasury and across the Government 

through capital investment. The following 

section discusses both past investments and 

proposed plans. 

Legislative Proposals 

DSCIP has no legislative proposals.

Department of the Treasury - Budget in Brief 20
Office of Inspector General 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Level Enacted Request $ Change % Change

Audit $21,630 $27,050 $28,275 $1,225 4.53%

Investigations $6,461 $7,750 $7,076 ($674) -8.70%

Subtotal, Office of Inspector General $28,091 $34,800 $35,351 $551 1.58%

Offsetting Collections - Reimbursables $13,200 $12,000 $13,000 $1,000 8.33%

Total Program Operating Level $41,291 $46,800 $48,351 $1,551 3.31%

Direct FTE 172 194 194 0 0.00%

Reimbursable FTE 19 19 21 0 0.00%

Total FTE 191 213 213 0 0.00%

Some reimbursable amounts and FTEs have been updated here compared to the President’s Budget Appendix. 

Summary 

The Inspector General Act of 1978 gives the 

Treasury Office of Inspector General (OIG) 

the authority and responsibility to (1) audit and 

investigate the Department of the Treasury’s 

programs and operations; (2) promote 

economy and efficiency and to detect and 

prevent fraud and waste in those programs and 

operations; and (3) keep the Secretary and 

Congress aware of problems and solutions. 

The OIG provides independent oversight of 

Treasury and all of its bureaus except the 

Internal Revenue Service (IRS) and the 

Troubled Asset Relief Program (TARP). The 

OIG has five components, including three 

mission offices – the Office of Audit, the 

Office of Investigations, and the Office of 

Small Business Lending Fund (SBLF) 

Program Oversight (separately funded through 

2017). 

OIG supports Treasury’s strategic goals, but 

primarily supports Treasury’s Strategic Goal 1, 

Promote domestic economic growth and 

stability while continuing reforms of the 

financial system; Goal 3, Fairly and effectively 

reform and modernize federal financial 

management, accounting, and tax systems: 

Goal 4, Safeguard the financial system and use 

financial measures to counter national security 

threats; and Goal 5, Create a 21st-century 

approach to government by improving 

efficiency, effectiveness and customer 

interaction. OIG also supports Treasury’s 

strategic objectives 3.1: Improve the efficiency 

and transparency of federal financial 

management and government-wide 

accounting, 4.3: Improve the cyber security of 

our nation’s financial sector critical 

infrastructure and 5.3: Promote efficient use 

of resources through shared services, strategic 

sourcing, streamlined business processes, and 

accountability. 

In support of Treasury’s strategic goals, the 

OIG established the following strategic goals: 

promote the integrity and effectiveness of 

Treasury programs and operations through 

audits and investigations; proactively support 

and strengthen the Department’s ability to 

identify and manage challenges, both today 

and in the future; fully and currently inform 

stakeholders of Treasury OIG findings, 

recommendations, investigative results, and 

priorities related to Treasury programs and 

operations; and enhance, support, and sustain a 

workforce and strengthen internal operations 

Department of the Treasury - Budget in Brief 21
to achieve the Treasury OIG mission, vision 

and strategic goals. 

The FY 2015 budget request will be used to 

fund critical audit, investigative, and support 

activities to meet the requirements of the 

Inspector General Act of 1978, the DoddFrank Wall Street Reform and Consumer 

Protection Act (Dodd-Frank), the Federal 

Information Security Management Act 

(FISMA), the Government Management 

Reform Act, the Federal Deposit Insurance 

Act , the Small Business Jobs Act of 2010, the 

Improper Payments Elimination and Recovery 

Act (IPERA), and the American Recovery and 

Reinvestment Act of 2009 (Recovery Act), 

among others. Specific mandates require that 

OIG audit the Department’s financial 

statements, the Department’s implementation 

of FISMA, the Department’s implementation 

of IPERA, and failures of Treasury-regulated 

banks. Recently, with passage of the 

Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived Economies 

of the Gulf Coast States Act of 2012 

(RESTORE Act), the OIG is authorized to 

conduct, supervise, and coordinate audits and 

investigations of projects, programs, and 

activities of the Gulf Coast Restoration Trust 

Fund (Trust Fund). 

With the resources available after mandated 

requirements are met, the OIG will conduct 

audits and investigations of the Department’s 

highest risk programs and operations. These 

include: 

 Programs that support the continued 

implementation of Dodd-Frank. The Act 

established the Council of Inspectors 

General on Financial Oversight (CIGFO) 

and designated the Treasury Inspector 

General as Chair. The Council has 

statutory requirements to provide oversight 

of the Financial Stability Oversight 

Council (FSOC), which is chaired by the 

Treasury Secretary. 

 Management of Treasury’s authorities 

to support and improve the economy. 

The Recovery Act provided Treasury 

with approximately $22 billion in nonIRS funding for low-income housing 

projects and specified energy 

properties for which the OIG must 

provide oversight. Funds for the 

Recovery Act are available through 

FY 2013 and beyond for the specified 

energy properties program. The OIG 

will continue this work at 

Departmental Offices to determine 

whether the funds were spent as 

intended. While not an ideal situation, 

the Treasury OIG is providing the only 

monitoring presence in the field by 

Treasury for this program. The OIG 

will also continue its oversight of the 

low-income housing program as 

funded projects are being brought on 

line. In addition, the OIG anticipates 

an increase of related criminal 

investigations as Treasury continues to 

disburse these funds. 

 Programs to Combat Money 

Laundering and Terrorist 

Financing/Bank Secrecy Act 

Enforcement - Ensuring criminals and 

terrorists do not use our financial 

networks to sustain their operations 

and/or launch attacks against the U.S. 

continues to be a challenge. Given the 

criticality of this challenge to the 

Department’s mission, the OIG 

continues to consider anti-money 

laundering and combating terrorist 

financing as inherently high-risk, and 

an area that demands a major focus of 

its self-directed resources. 

 Gulf Coast Restoration Trust Fund 

Administration - In response to the Deepwater 

Department of the Treasury - Budget in Brief 22
Horizon oil spill, Congress established within 

Treasury the Gulf Coast Restoration Trust 

Fund and requires Treasury to deposit in the 

Trust Fund 80 percent of administrative and 

civil penalties paid by responsible parties, 

which will be distributed for eligible activities 

affecting the Gulf Coast states (Alabama, 

Florida, Louisiana, Mississippi, and Texas). 

 

OIG investigative priorities for FY 2015 

include: Investigating complaints of alleged 

criminal and serious misconduct by 

Department employees and contract 

employees; Investigating allegations of fraud 

and other crimes involving Treasury contracts, 

procurements, grants, guarantees (fictitious 

instruments), and federal funds; Investigating 

complaints related to financial programs and 

operations involving issuing licenses, 

providing benefits and exercising oversight of 

U.S. financial institutions; Conducting 

investigations into threats against treasury 

employees and facilities; and proactive efforts 

in detecting, investigating, and deterring 

electronic crimes and other threats to the 

Department’s physical and cyber critical 

infrastructure. 

In addition to audit and investigative 

responsibilities cited above, the OIG will 

continue to provide audit and investigative 

oversight over two additional Treasury 

programs—the Small Business Lending Fund 

(SBLF) and State Small Business Credit 

Initiative (SSBCI). The SBLF is a $30 billion 

fund that is used by Treasury to inject capital 

into small and medium banks with incentives 

to encourage them to increase their lending. 

The SSBCI provides Treasury with $1.5 

billion to support state programs designed to 

increase access to credit for small businesses. 

To ensure proper oversight of the SBLF, in 

2010 OIG established the SBLF Program 

Oversight Office headed by a Special Deputy 

Inspector General with responsibility for all 

audit and investigative activities relating to the 

program and for recommending program 

improvements. Congress also directed the 

OIG to audit the use of SSBCI funds by 

participating states and required Treasury to 

recoup any misused funds identified by such 

audits. To comply with its mandates, the OIG 

will continue to assess Treasury’s 

implementation of these two programs, 

continually monitor recipient compliance with 

program requirements and use of funds, and 

evaluate the impact of these programs on small 

business lending. 

In FY 2015, Treasury OIG will work with the 

GSA to consolidate three expiring office space 

leases into one new lease, so that all 

Washington, DC employees are together in a 

single location. The current estimate for this 

one-time cost is $4 million. 

Total resources required to support OIG 

operations in FY 2015 are $48,351,000, 

consisting of (1) $35,351,000 from direct 

appropriations and (2) $13,000,000 from 

reimbursable funding agreements to support 

the financial statement audit requirements of 

the Department and for OIG oversight of the 

SBLF and SSBCI programs. 

OIG FY 2015 Budget Highlights

Dollars in Thousands

Office of Inspector General FTE Amount

FY 2014 Enacted 194 $34,800

Changes to Base:

Maintaining Current Levels (MCLs): - $551

Pay-Raise - $247

FERS Contribution Increase - $211

Non-Pay - $93

Subtotal Changes to Base - $551

Total FY 2015 Base 194 $35,351

Total FY 2015 Request 194 $35,351

FY 2015 Budget Adjustments 

Maintaining Current Level (MCLs) 

Pay-Raise +$247,000 / +0 FTE 

Funds are requested for the proposed January 

2015 pay-raise and the annualization of the 

2014 pay-raise. 

Department of the Treasury - Budget in Brief 23
FERS Contribution Increase +$211,000 / 

+0 FTE

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$93,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Explanation of Budget Activities 

Audit ($27,575,000 from direct 

appropriations, $13,000,000 from 

reimbursable resources) 

The Office of Audit conducts audits aimed to 

ensure the accountability of resources, protect 

information, and provide recommendations for 

improving the economy, efficiency, 

effectiveness, and integrity of Treasury 

programs and operations under its jurisdiction. 

The requested funding for FY 2015 is 

necessary to perform mandated work and 

maintain an appropriate level of oversight of 

Treasury programs and operations consistent 

with its responsibilities under the Inspector 

General Act. The OIG also responds to 

requests by Treasury officials and the 

Congress for specific work. As a newer 

responsibility, in FY 2015, the OIG must also 

provide oversight of Gulf Coast Restoration 

Trust Fund programs, projects, and activities. 

Reimbursable funding supports agreements for 

contract audits of other Treasury bureaus, as 

well as oversight of the Small Business 

Lending Fund (SBLF) and the State Small 

Business Credit Initiative (SSBCI) programs. 

SBLF/SSBCI program oversight and expected 

performance is detailed in the SBLF/SSBCI 

Program Office budget submission. 

Investigations ($7,776,000 from direct 

appropriations) 

The Office of Investigations (OI) prevents, 

detects, and investigates complaints of fraud, 

waste, and abuse. This includes the detection 

and prevention or deterrence of employee 

misconduct and fraud, or related financial 

crimes within or directed against Treasury. 

The Office refers its cases to the Department 

of Justice, or state or local prosecutors for 

criminal prosecution or civil litigation, or to 

agency officials for corrective administrative 

action. 

With the increased risk of the Recovery Act 

grant programs for low-income housing and 

specific energy properties, the Office of 

Investigations faces greater challenges and 

anticipated increases in grant fraud. 

Investigative efforts are being directed towards 

those that subvert bank examination processes, 

subsequently defrauding the system and 

eroding the public’s trust. 

Legislative Proposals 

OIG has no legislative proposals. 

Department of the Treasury - Budget in Brief 24
OIG Performance by Budget Activity 

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Audit Number of Completed Audit 

Products 

126 91 72 70 75

Audit Percent of Statutory Audits 

Completed by the Required Date 

100.0 100.0 100.0 100.0 100.0

Investigations Percentage (%) of All Cases 

Closed During Fiscal Year that 

were Referred for Criminal/Civil 

Prosecution or Treasury 

Administrative Action

85.0 91.0 84.0 80.0 80.0

Key: DISC - Discontinued and B - Baseline

Description of Performance 

The Office plans to complete 75 audit products 

annually in FYs 2014 and 2015. In FY 2013, 

the Office of Audit completed 72 audit 

products, exceeding the planned target of 70 

audit products. In FY 2013, the Office met its 

mandated audit requirements and identified 

$32.6 million in monetary benefits. Audit 

products include audit reports, evaluation 

reports, the Inspector General’s Semi-Annual 

Report to the Congress, and the Inspector 

General’s Annual Memorandum to the 

Secretary on the most significant management 

and performance challenges facing the 

department. Audit products can also include 

responses to specific information requests by 

the Congress on a variety of subjects. By 

completing independent and timely 

assessments of Treasury’s programs and 

operations under jurisdiction, OIG supports its 

mission of promoting economy, efficiency, 

effectiveness, and integrity of Treasury 

programs and operations. The 

recommendations for improvement in 

Treasury programs and operations, noted 

through OIG’s assessments, directly support 

the Treasury Department in achieving four of 

its five strategic goals (the OIG also 

incidentally supports Treasury’s strategic goal 

of “Enhance U.S. competitiveness and job 

creation, and promote international financial 

stability and more balanced global growth”). 

It should be noted that a number of these 

assessments are mandated in law with specific 

reporting deadlines so that decision makers 

have timely information. The OIG has a 

mature audit operation that can well estimate, 

based on historical performance. That said 

OIG has, over time, demonstrated agility at 

redirecting resources as necessary to address 

new challenges and mandates of its 

stakeholders. 

In keeping with the OIG’s strategy to maintain 

a highly skilled and motivated workforce, the 

OIG plans and executes a meaningful body of 

work designed to help ensure the integrity and 

effectiveness of Treasury programs and 

operations while looking for opportunities to 

improve them. 

In FY 2013, the OIG exceeded the 

Investigative Performance Measure target, 

opened 103 new investigations, and closed 101 

investigations. The OIG also referred 146 

investigations that substantiated administrative 

violations against a Treasury employee to the 

appropriate regulated bureau for action. In 

addition, the OIG referred 109 investigations 

for criminal prosecution. The OIG received 

investigative referrals regarding potential 

criminal misconduct that occurred prior to or 

during bank failures, and has worked criminal 

investigations with the Federal Deposit 

Department of the Treasury - Budget in Brief 25
Insurance Corporation Office of Inspector 

General and the OIG Office of Audit regarding 

potential prosecution of acts which may have 

contributed to the bank failures. 

The Investigative performance measure is the 

percentage of all cases closed by OI during the 

fiscal year referred for administrative action or 

for criminal or civil prosecution by Federal or 

local prosecutors. The goal for OIG is that at 

least 80 percent of closed cases meet the 

aforementioned criteria of closed cases in a 

fiscal year. Meeting or exceeding this goal 

demonstrates that OI is responsive to 

allegations and complaints referred to OI and 

that when these referrals require investigation, 

the cases are timely, thoroughly and accurately 

reported to assist the Department in 

maintaining the integrity of its programs and 

operations, subsequently ferreting out fraud, 

waste, and abuse. This goal was developed for 

use beginning in FY 2012 to achieve OIG’s 

goal of positively impacting Treasury’s 

strategic goals and providing a more 

meaningful measurement of investigative 

performance. 

Department of the Treasury - Budget in Brief 26
Special Inspector General for TARP

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Operating Level Enacted Request $ Change % Change

SIGTARP Annual Appropriation $41,716 $34,923 $34,234 ($689) -1.97%

Unobligated balances from Prior Years $10 $6,683 $10,957 $4,274 63.95%

Available PPIP Funds $1,644 $1,536 $965 ($571) -37.17%

Total Budgetary Resources $43,370 $43,142 $46,156 $3,014 6.99%

Budget Activity

Audit $15,083 $15,296 $12,201 ($3,095) -20.23%

Investigations $28,287 $27,846 $33,955 $6,109 21.94%

Total SIGTARP by Budget Activity $43,370 $43,142 $46,156 $3,014 6.99%

Total FTE 192 192 192 0 0.00%

Summary 

The FY 2015 President’s Budget request for 

the Special Inspector General for Troubled 

Asset Relief Program (SIGTARP) includes 

funding to support and complement one of 

Treasury’s five enumerated strategic goals: 

(1) to promote domestic economic growth and 

stability while continuing reforms of the 

financial system. In particular, SIGTARP 

supports strategic objectives (1.1) promoting 

savings and access to credit and affordable 

housing options; (1.2) wind down emergency 

financial crisis response programs; and (1.3) 

complete implementation of financial 

regulatory reform initiatives and continue 

monitoring the markets for threats to stability. 

SIGTARP promotes the efficiency and 

effectiveness of TARP management, through 

transparency, coordinated oversight, and 

robust enforcement against those persons and 

entities, whether inside or outside of 

Government, who waste, steal or abuse TARP 

funds. SIGTARP has been responsible for 

many of the significant financial crisis cases, 

but these complex cases take time to 

investigate. Considering most complex 

financial fraud investigations can take several 

years to complete, SIGTARP’s high arrest and 

conviction rates are particularly notable. 

Of the four primary oversight bodies 

referenced in the Emergency Economic 

Stabilization Act of 2008 (“EESA”), (i.e., 

SIGTARP, the Financial Stability Oversight 

Board, the Congressional Oversight Panel, and 

the Government Accountability Office), 

SIGTARP stands as the sole TARP oversight 

body responsible for criminal law 

enforcement. Also, SIGTARP is the only 

agency solely charged with the mission of: 

 Transparency – Promote transparency in 

the Government’s response to financial 

crisis including TARP programs; 

 Oversight – Advise and provide 

recommendations to Treasury and the 

Federal banking regulators to facilitate 

effective oversight and to prevent fraud, 

waste and abuse; 

 Robust Enforcement – Prevent, detect, 

investigate, and refer for prosecution cases 

of fraud, waste, and abuse related to 

TARP. 

SIGTARP’s FY 2015 budget request will 

provide resources to (1) quickly detect, stop 

and investigate fraud related to TARP; (2) 

provide significant oversight and transparency 

over the largest remaining TARP investments, 

Department of the Treasury - Budget in Brief 27
including Ally Financial Inc. (ALLY) and 

other financial institutions remaining in 

TARP; (3) protect taxpayer investments in the 

Term Asset-Backed Securities Loan Facility 

(TALF); and (4) provide oversight and 

transparency over TARP-funded housing 

programs which are scheduled to last until 

2021 - or as long as the government has 

contracts or guarantees. 

Under EESA, SIGTARP is to carry out its 

duties until the Government has sold or 

transferred all assets and terminated all 

insurance contracts acquired under TARP. In 

other words, SIGTARP will remain “on 

watch” as long as TARP assets remain 

outstanding. 

SIGTARP FY 2015 Budget Highlights 

Dollars in Thousands

Special Inspector General for TARP FTE Amount

FY 2014 Enacted 192 $34,923

Changes to Base:

Maintaining Current Levels (MCLs): - $823

Pay-Raise - $300

FERS Contribution Increase - $260

Non-Pay - $263

Efficiency Savings: - ($1,512)

Operations Partially Funded from NoYear Resources - ($1,512)

Subtotal Changes to Base - ($689)

Total FY 2015 Base 192 $34,234

Total FY 2015 Request 192 $34,234

FY 2015 Budget Adjustments 

Adjustments to Request 

Maintaining Current Levels (MCLs) 

Pay-Raise +$300,000 / +0 FTE

Funds are requested for the proposed January 

2015 pay-raise and the annualization of the 

2014 pay-raise. 

FERS Contribution Increase +$260,000 / 

+0 FTE

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$263,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Efficiency Savings 

Operations Partially Funded from No-Year 

Resources -$1,512,000 / +0 FTE 

Reduction in general operating costs to occur 

from the annual account. SIGTARP will 

instead continue to use its mandatory funding.

Explanation of Budget Activities

Audit ($9,243,000 from direct appropriations, 

$0 from reimbursable resources) 

The Audit Division (AD) conducts, supervises, 

and coordinates programmatic audits with 

respect to Treasury’s operation of TARP and 

the recipients’ compliance with their 

obligations under relevant law and contracts; 

evaluates TARP policies and procedures; and 

provides recommendations to Treasury. 

A particular focus of AD is ensuring that 

appropriate internal controls are in place and 

followed by Treasury in its management of 

TARP and by the recipients of TARP funds, 

including vendors and the entities in which 

money is invested. Where controls or 

compliance are found to be lacking, or where 

particular aspects or policies are found 

ineffective at reaching TARP’s goals, AD 

assists the Special Inspector General to fashion 

recommendations to resolve such issues. 

Investigations ($24,991,000 from direct 

appropriations) 

Investigations Division (ID) supervises and 

conducts criminal and civil investigations into 

those persons and entities, whether inside or 

outside of government, who waste, steal, or 

abuse TARP funds. One of SIGTARP's 

primary investigative priorities is to operate 

the SIGTARP Hotline, providing a simple, 

accessible way for the American public to 

report concerns, allegations, information, and 

evidence of violations of criminal and civil 

Department of the Treasury - Budget in Brief 28
laws in connection with TARP. From its 

inception in February 2009 through October 

29, 2013, the SIGTARP Hotline has received 

and analyzed more than 33,052 Hotline 

contacts. A substantial number of SIGTARP’s 

investigations were generated in connection 

with Hotline tips. The SIGTARP Hotline can 

receive information anonymously, and the 

confidentiality of whistleblowers is protected 

to the fullest extent possible. 

Legislative Proposals

SIGTARP has no legislative proposals. 

SIGTARP Performance by Budget Activity

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Audit Number of Completed Audit 

Products (Units)

13 13 10 8 8

Investigations Percentage of Investigations 

Accepted for Consideration by 

Prosecutors (%)

94.0 95.0 94.0 70.0 70.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

 In FY 2013 SIGTARP exceeded its 

performance goal, “Congressional Requests 

for Testimony” by completing five 

testimonies. SIGTARP anticipates that 

Congress will continue to have interest in 

SIGTARP’s work. The performance goal, 

“Number of Completed Audit Products,” 

includes audit reports and memoranda that 

promote the efficiency and effectiveness of the 

Troubled Asset Relief Program (TARP). In 

FY 2013 SIGTARP completed 10 audit 

products meeting the goal of 10 for this 

reporting period. In order to more accurately 

measure the impact of reports, SIGTARP 

implemented a new measure in FY 2013 – 

“Percent of Recommendations Agreed to by 

the Office of Financial Stability”. Since 

SIGTARP does not have control over 

Treasury’s decision to implement SIGTARP 

recommendations it is not productive to 

continue to measure this component for 

program effectiveness. This measure has been 

discontinued for FY 2014 and FY 2015. 

In FY 2013 SIGTARP referred 83 percent of 

“Hotline Complaints Responded to or Referred 

for Investigation or further action within 14 

days of Receipt”, exceeding the goal of 70 for 

this period. In FY 2013, the “Percentage of 

Preliminary Investigations Converted to Full 

Investigations within 180 Days” was 82 

percent, exceeding the goal of 50 percent. 

This success is attributed to SIGTARP’s 

ability to respond quickly to allegations and 

devote the necessary resources. SIGTARP has 

involved the prosecutors in the early stages of 

the Preliminary Investigations to ensure that 

allegations, if proven, will be prosecuted. The 

“Percentage of Investigations Accepted for 

Consideration by Prosecutors” was 94 in FY 

2013, exceeding the target of 60. SIGTARP 

ID coordinates closely with other law 

enforcement agencies with the goal of forming 

law enforcement partnerships across the 

Federal government to leverage SIGTARP’s 

expertise and unique position. The overall 

“Percentage of cases that are joint agency/task 

force Investigations” with other law 

enforcement agencies was 79 percent, 

exceeding the target of 45 percent. This was 

primarily due the significant number of high 

profile cases opened in FY 2013. 

It is expected that SIGTARP will continue to 

meet or exceed performance measures in 

FY 2014 and FY 2015.

Department of the Treasury - Budget in Brief 29
Department of the Treasury - Budget in Brief 30
The Treasury Inspector General for Tax Administration

 

Program Summary by Budget Activity 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Plan Enacted Request $ Change % Change

Audit $54,309 $60,850 $61,264 $414 0.68%

Investigations $89,452 $95,525 $96,155 $630 0.66%

Subtotal, Treasury Inspector General for 

Tax Administration $143,761 $156,375 $157,419 $1,044 0.67%

Offsetting Collections - Reimbursables $1,247 $1,700 $1,500 ($200) -11.76%

Total Program Operating Level $145,008 $158,075 $158,919 $844 0.53%

Direct FTE 821 835 835 0 0.00%

Reimbursable FTE 2 2 2 0 0.00%

Total FTE 823 837 837 0 0.00%

Summary 

The FY 2015 President’s Budget request for 

the Treasury Inspector General for Tax 

Administration (TIGTA) will be used to 

provide high quality professional audit, 

investigative, and inspections and evaluations 

services that promote integrity, economy, and 

efficiency in the administration of the Nation’s 

tax system. While there are a number of 

critical areas where TIGTA will provide 

oversight, FY 2015 priorities include: 

 Mitigating risks associated with security 

over taxpayer data and employees, 

information systems modernization, 

identity theft, oversight of tax-exempt 

organizations, procurement fraud, tax 

compliance, achieving program 

efficiencies and cost savings, 

implementation of tax law changes, and 

human capital challenges facing the IRS in 

domestic and/or international operations; 

 Providing the IRS with the investigative 

coverage and the information necessary to 

mitigate threats against its employees, 

facilities, and systems; 

 Responding to domestic and foreign 

threats to and attacks against IRS 

employees, property, data infrastructure, 

and sensitive information; 

 Improving the integrity of IRS operations 

by detecting and deterring waste, fraud, 

abuse, and misconduct by IRS employees; 

 Conducting comprehensive and real-time 

audits, inspections, and evaluations that 

include recommendations for monetary 

benefits, addressing erroneous and 

improper payments, and enhancing the 

services the IRS provides to taxpayers; 

 Informing the American people, Congress, 

and the Secretary of the Treasury of 

problems on a timely basis once all facts 

are known; 

 Overseeing the IRS’s efforts to administer 

tax provisions of the Patient Protection 

and Affordable Care Act (ACA), as 

amended by the Health Care and 

Education Reconciliation Act of 2010; and 

 Overseeing the IRS’s efforts to implement 

the Foreign Account Tax Compliance Act 

(FATCA) to help prevent U.S. taxpayers 

from hiding assets offshore. 

TIGTA was created by Congress as a part of 

the Internal Revenue Service Restructuring 

and Reform Act of 1998 (RRA 98). TIGTA’s 

audits, investigations, inspections, and 

evaluations protect and promote the fair 

administration of the American tax system. 

Department of the Treasury - Budget in Brief 31
TIGTA conducts audits that advise the 

American people, Congress, the Secretary of 

the Treasury, and IRS management of highrisk issues, problems, and deficiencies related 

to the administration of IRS programs and 

operations. TIGTA’s audit recommendations 

improve the administration of the Federal tax 

system. TIGTA’s administrative and criminal 

investigations help to protect the IRS and its 

employees and to ensure that the IRS protects 

and secures taxpayer’s data. TIGTA’s 

inspections and evaluations services provide 

responsive, timely, and cost-effective 

inspections and evaluations of IRS challenge 

areas. TIGTA’s oversight is essential to the 

efficiency and equity of the IRS’s tax 

administration system. TIGTA ensures that 

taxpayers can have confidence that the IRS 

collects more than $2 trillion in tax revenue in 

an effective and efficient manner. 

Total resources required to support TIGTA 

activities for FY 2015 are $158,919,000, 

including $157,419,000 from direct 

appropriation and $1,500,000 from offsetting 

collections and reimbursable programs. 

TIGTA FY 2015 Budget Highlights

Dollars in Thousands

Treasury Inspector General for Tax 

Administration FTE Amount

FY 2014 Enacted 835 $156,375

Changes to Base:

Maintaining Current Levels (MCLs): - $2,898

Pay-Raise - $1,433

FERS Contribution Increase - $1,039

Non-Pay - $426

Efficiency Savings: - ($1,854)

Space Optimization - ($240)

Implementation of Administrative 

Efficiencies - ($1,614)

Subtotal Changes to Base - $1,044

Total FY 2015 Base 835 $157,419

Total FY 2015 Request 835 $157,419

FY 2015 Budget Adjustments 

Maintaining Current Levels (MCLs) 

Pay-Raise +$1,433,000 / +0 FTE 

Funds are requested for the proposed January 

2015 pay-raise and the annualization of the 

2014 pay-raise. 

Federal Employee Retirement System 

(FERS) Contribution Increase +$1,039,000 

/ +0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Non-Pay +$426,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as General 

Services Administration (GSA) rent 

adjustments, postage, supplies, and equipment.

Efficiency Savings 

Space Optimization -$240,000 / +0 FTE 

TIGTA will continue to reduce costs by 

consolidating and reducing space in leased 

buildings. TIGTA also is committed to 

achieving real property cost savings through 

the reduction of space usage, non-renewal of 

lease agreements, and/or the consolidation of 

existing space. TIGTA continues to 

aggressively implement telework and office 

right-sizing measures in order to reduce its 

footprint. 

Implementation of Administrative 

Efficiencies -$1,614,000 / +0 FTE 

TIGTA continues to maintain a savings culture 

and is committed to being efficient by 

identifying savings while investing in strategic 

priorities. TIGTA has closely scrutinized its 

budget and has identified cost savings in 

travel, training, contracts, and rent. 

Department of the Treasury - Budget in Brief 32
Explanation of Budget Activities

Audit $61,264,000 from direct 

appropriations, $600,000 from reimbursable 

resources 

TIGTA’s audit work is concentrated on highrisk areas and the IRS’s progress in achieving 

its strategic goals. TIGTA strategically 

evaluates IRS programs, activities, and 

functions so that resources are expended in the 

areas of highest vulnerability to the Nation’s 

system of tax administration. TIGTA’s audit 

program includes both statutory audit 

requirements and specific audits identified 

through TIGTA’s risk-assessment process. By 

focusing on the most critical areas, TIGTA 

identifies and recommends improvements that 

add value while addressing high-risk tax 

administration issues. TIGTA’s audits and 

recommendations help promote the economy, 

efficiency, and effectiveness of IRS programs; 

ensure the fair and equitable treatment of 

taxpayers; and detect and deter waste, fraud, 

and abuse. 

During FY 2013, TIGTA issued 115 audit 

reports that included potential financial 

benefits of approximately $16.6 billion and 

affected approximately 3.9 million taxpayer 

accounts. In FY 2013 and FY 2014, several 

key ACA provisions will have become 

effective. As such, FY 2015 will be a 

significant year for oversight of ACA 

provisions. TIGTA’s independent oversight 

plays a key role in ensuring that these 

provisions are implemented and administered 

in accordance with the law and the intent of 

Congress. 

 

Investigations $96,155,000 from direct 

appropriations, $900,000 from reimbursable 

resources 

TIGTA has a statutory responsibility to protect 

the integrity of tax administration and to 

protect the ability of the IRS to collect revenue 

for the Federal Government. To accomplish 

this, TIGTA investigates allegations of 

administrative and criminal activities and 

serious misconduct committed by IRS 

employees. TIGTA investigations protect the 

IRS against external attempts to corrupt tax 

administration and ensure IRS employee 

safety and IRS data and infrastructure security. 

The following summaries highlight TIGTA’s 

investigative efforts in these three core areas: 

Employee Integrity: IRS employee 

misconduct, real or perceived, can erode 

public trust and impede the IRS’s ability to 

effectively enforce tax laws. This misconduct 

manifests itself in a variety of ways, including: 

misuse of IRS resources or authority; theft; 

fraud; extortion; taxpayer abuses; and 

unauthorized access (UNAX) to, and 

disclosure of, tax return information. During 

FY 2013, 50 percent of TIGTA’s investigative 

body of work involved alleged employee 

misconduct. TIGTA’s special agents possess 

the knowledge, skills, and expertise to 

investigate such matters. It also conveys a 

message to IRS employees that these types of 

activities will not go unchecked. TIGTA 

promotes employee integrity by conducting 

proactive investigative initiatives to detect 

criminal and other serious misconduct in the 

administration of IRS programs. 

Employee and Infrastructure Security: 

Physical violence, harassment, and 

intimidation of IRS employees pose some of 

the most significant challenges to the 

implementation of a fair and effective system 

of tax administration. TIGTA’s investigative 

efforts place high priority on its oversight of 

IRS employee safety and physical security, 

protecting approximately 100,000 employees 

and more than 600 facilities throughout the 

country. TIGTA maintains IRS employee and 

infrastructure security by conducting 

investigations into incidents that threaten IRS 

employees, facilities, and infrastructure. 

TIGTA works aggressively and takes swift 

action to protect IRS employees, including the 

providing of armed escorts. In October 2008, 

Department of the Treasury - Budget in Brief 33
the Inspector General Reform Act of 2008 was 

signed into law, which allows TIGTA to 

provide physical security to protect IRS 

employees against external threats. TIGTA 

also operates the Electronic Crimes and 

Intelligence Division which facilitates 

gathering of pertinent information regarding 

potential threats to IRS employees and 

operations. This division participates with the 

Federal Bureau of Investigation sponsored 

National Joint Terrorism Task Force and the 

Domestic Terrorism Operations Units 

nationwide. 

External Attempts to Corrupt Tax 

Administration: TIGTA is statutorily 

mandated to investigate external attempts to 

corrupt tax administration, which includes 

criminal misconduct by non-employees such 

as attempted bribery of IRS employees and the 

impersonation of the IRS. A large portion of 

IRS employees are in direct contact with 

taxpayers and often encounter situations where 

a taxpayer may challenge the employee’s 

integrity by offering a bribe. Bribery, or 

attempted bribery, of a public official is a 

criminal offense and an attack on the integrity 

of the entire IRS organization and the Nation’s 

system of tax administration. TIGTA is 

currently investigating a nationwide IRS 

impersonation scheme in which criminals are 

pretending to be IRS employees and are 

attempting to collect phantom tax liabilities 

from innocent taxpayers. TIGTA has received 

thousands of reports of this type of contact 

over the last three months of Calendar Year 

2013. 

Legislative Proposals

TIGTA has no legislative proposals. 

 

TIGTA Performance by Budget Activity 

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Audit Percentage of Audit Products 

Delivered when Promised to 

Stakeholders 

68.0 71.0 84.0 65.0 68.0

Audit Percentage of Recommendations 

Made that Have Been 

Implemented 

93.0 94.0 87.0 85.0 85.0

Investigations Percentage of Results from 

Investigative Activities 

82.0 89.0 90.0 77.0 81.0

Key: DISC - Discontinued and B – Baseline

Description of Performance

 For FY 2013, TIGTA issued 115 audit 

reports identifying approximately 

$16.6 billion in potential financial benefits 

(i.e., costs savings, increased or protected 

revenue, taxpayer rights and entitlements, 

and inefficient use of resources). 

 For FY 2013, the actual percentage of 

audit products delivered when promised to 

stakeholders was 84 percent. TIGTA 

exceeded this target by 14 percent as a 

result of monitoring the execution of its 

audit programs. The FY 2013 actual 

percentage of recommendations made that 

have been implemented was 87 percent. 

TIGTA exceeded its target by two percent 

as a result of continued discussions with 

the IRS throughout the audit process, both 

on the findings and on the potential 

recommended solutions, to better ensure 

that feasible alternatives were identified. 

Department of the Treasury - Budget in Brief 34
For FY 2015, the Office of Audit targets 

for percentage of audit products delivered 

when promised to stakeholders is 

68 percent and of recommendations made 

that have been implemented is 85 percent. 

 During FY 2013, TIGTA initiated 77 

proactive investigative initiatives to detect 

systemic weaknesses or potential IRS 

program vulnerabilities. TIGTA received 

9,339 complaints and opened 3,326 

investigations in FY 2013. During this 

time period, TIGTA also closed 3,266 

investigations, which included 1,368 cases 

of employee misconduct referred for IRS 

action and 152 cases accepted for criminal 

prosecution. 

 For FY 2015, the Office of Investigations’ 

performance target is 81 percent, a four 

percent increase from the FY 2014 target 

of 77 percent. 

Department of the Treasury - Budget in Brief 35
Department of the Treasury - Budget in Brief 36
Community Development Financial Institutions Fund

Program Summary by Budget Activity

Dollars in thousands

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Level Enacted Request $ Change % Change

Community Development Financial 

Institutions Program $138,397 $146,364 $151,300 $4,936 3.37%

Bank Enterprise Award Program $17,058 $18,000 $0 ($18,000) NA

Native American CDFI Assistance Program $11,372 $15,000 $15,000 $0 NA

Administration $21,764 $24,636 $23,600 ($1,036) -4.21%

Healthy Food Financing Initiative $20,849 $22,000 $35,000 $13,000 59.09%

Subtotal, Community Development 

Financial Institutions Fund $209,440 $226,000 $224,900 ($1,100) -0.49%

Offsetting Collections - Reimbursables $106 $106 $112 $6 5.66%

User Fees $0 $0 $1,129 $1,129 NA

Recovery from Prior Years $6,604 $5,200 $5,200 $0 NA

Unobligated Balances from Prior Years $31,650 $24,411 $25,352 $941 3.85%

Total Program Operating Level $247,800 $255,717 $256,693 $976 0.38%

Direct FTE 76 76 73 (3) -3.95%

Reimbursable FTE 0 0 0 0 NA

Total FTE 76 76 73 (3) -3.95%

Summary

The FY 2015 budget requests an appropriation 

of $224,900,000 for the Community 

Development Financial Institutions Fund 

(CDFI Fund) to support its mission of 

promoting economic opportunity and 

community development. 

The CDFI Fund expands the availability of 

credit, investment capital, and financial 

services in distressed urban and rural 

communities and for underserved populations. 

The CDFI Fund carries out the Community 

Development Banking and Financial 

Institutions Act of 1994, as well as certain 

programmatic provisions of the Community 

Renewal Tax Relief Act of 2000, the Housing

and Economic Recovery Act of 2008, and the 

Small Business Jobs Act of 2010. 

The CDFI Fund supports the creation and 

expansion of diverse Community 

Development Financial Institutions (CDFIs), 

which provide loans, investments, business 

counseling, basic banking services, and 

financial literacy training to underserved 

communities. Working primarily through 

CDFIs, the Fund facilitates business 

development, commercial real estate, housing 

development and home ownership. The CDFI 

Fund’s activities leverage billions of private 

sector investment dollars from banks, 

foundations, and other funding sources on a 

cumulative basis.

The FY 2015 budget proposes funding for the

CDFI Program and Native American CDFI 

Assistance (NACA) Program, as well as the 

Healthy Food Financing Initiative (HFFI). The 

CDFI Fund request also includes funding to 

administer the New Markets Tax Credit 

(NMTC) Program and the CDFI Bond 

Guarantee Program. 

Department of the Treasury - Budget in Brief 37
CDFI FY 2015 Budget Highlights

Dollars in Thousands

Community Development Financial 

Institutions Fund FTE Amount

FY 2014 Enacted 76 $226,000

Changes to Base:

Maintaining Current Levels (MCLs): - $462

Pay-Raise - $111

FERS Contribution Increase - $99

Non-Pay - $252

Subtotal Changes to Base - $462

Total FY 2015 Base 76 $226,462

Program Changes:

Program Decreases: (3) ($19,498)

Bank Enterprise Award Program - ($18,000)

Administration (3) ($1,498)

Program Increases: - $17,936

CDFI Core Program - $4,936

Healthy Food Financing Initiative - $13,000

Total FY 2015 Request 73 $224,900

FY 2015 Budget Adjustments 

Maintaining Current Levels (MCLs) 

Pay-Raise +$111,000 / +0 FTE 

Funds are requested for the proposed January 

2015 pay-raise and the annualization of the 

2014 pay-raise.

FERS Contribution Increase +$99,000 / 

 +0 FTE

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Non-Pay +$252,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment. 

Program Decreases

Bank Enterprise Award Program 

-$18,000,000 / +0 FTE

The President’s Budget proposes not to fund 

the Bank Enterprise Award Program in 

FY 2015. 

Administration -$1,498,000 / -3 FTE

The President’s Budget proposes to reduce 

Administration by $1.498 million by achieving

savings in contractual services and 

administrative staffing costs.

Program Increases

Healthy Food Financing Initiative 

+$13,000,000 / +0 FTE

The CDFI Fund will increase the amount and 

number of financial assistance (FA) awards for 

the HFFI. An increase of $13 million will 

result in 6-7 more HFFI awards, expanding the 

offering of affordable financing for healthy 

food retail options in distressed communities. 

CDFI Program +$4,936,000 / +0 FTE

The CDFI Fund will increase the amount and 

number of FA and technical assistance (TA) 

awards. An increase of $4.936 million to the 

CDFI Program will result in 4-5 more FA 

awards made to CDFIs. More awards will 

increase the number of business and 

microenterprise loans, home improvement and 

purchase loans, residential real estate 

transactions, and other consumer loans and 

products offered by CDFI awardees.

Explanation of Budget Activities

Community Development Financial 

Institutions Program ($151,300,000 from 

direct appropriations) 

The CDFI Program uses federal resources to 

invest in and build the capacity of CDFIs to 

serve low-income and underserved individuals 

and communities lacking adequate access to 

affordable financial products and services. 

The CDFI Program provides monetary awards 

for financial assistance to further economic 

development (job creation, business financing, 

and commercial real estate development); 

affordable housing (housing development and 

homeownership); and community 

development financial services (provision of 

basic banking services to underserved 

communities and financial literacy training). 

The CDFI Program also provides technical 

assistance awards to help CDFIs build their 

capacity to serve their target markets through 

Department of the Treasury - Budget in Brief 38
the acquisition of consulting services, 

technology purchases, and training. 

New Markets Tax Credit Program ($0 from 

direct appropriations) 

The NMTC Program attracts private sector 

capital into low-income communities. 

Community Development Entities (CDEs) 

apply to the CDFI Fund for allocations of tax 

credit investment authority in annual 

competitive rounds. Private investors receive

tax credits for equity investments in these 

CDEs, which in turn finance qualified 

businesses. In addition to awarding tax 

credits, the CDFI Fund monitors CDE 

compliance through the terms of their 

allocation agreements. 

The FY 2015 President’s Budget proposes to 

permanently extend the NMTC, allowing up to 

$5 billion in qualifying investment in each 

year beginning in 2014. The proposal would 

also permit the NMTC to permanently offset 

Alternative Minimum Tax (AMT)

liability. Within the FY 2015 allocation 

request, the Budget also proposes to provide a 

new allocated tax credit, the Manufacturing 

Communities Tax Credit Program, which 

would support qualified investments in 

communities affected by military base closures 

or mass layoffs, such as those arising from 

plant closures. This would provide about $2 

billion in credits for qualified investments 

approved in each of three years, 2015 through 

2017.

Native American CDFI Assistance Program 

($15,000,000 from direct appropriations) 

The Native Initiatives includes two 

components: (i) the NACA Program through 

which financial assistance and technical 

assistance awards are provided to build the 

capacity of new or existing Native CDFIs 

serving Native Communities; and (ii) 

complementary capacity-building initiatives 

that foster the development of Native CDFIs 

through training and technical assistance, 

strengthen their operational capacity, and 

guide them in the creation of important 

financial education and asset-building 

programs for their communities.

Healthy Food Financing Initiative 

($35,000,000 from direct appropriations) 

Through the Administration’s Healthy Food 

Financing Initiative, the CDFI Fund will build 

on program achievements in FYs 2011, 2012 

2013, and 2014, and continue to support and 

finance healthy food alternatives in lowincome communities. To date, all 12 of the 

first-round HFFI awardees have reported their 

first year of investments on 43 projects 

totaling $29,035,079 in HFFI eligible

activities. Of these projects 30 were retail 

HFFI projects with 339,226 square feet of new 

retail space developed from small green 

grocers to large supermarkets serving lowincome, low-access census tracts. Another 13 

non-retail projects, such as production and 

distribution, developed 5,073 square feet of 

space for eligible healthy food activities. 

Bond Guarantee Program ($0 from direct 

appropriations) 

The Small Business Jobs Act of 2010 (Public 

Law 111-240) created the CDFI Bond 

Guarantee Program. Bonds issued under the 

program support CDFI lending activity in 

underserved communities by providing a 

source of long-term capital. Qualified Issuers 

(CDFIs or their designees) issue bonds that are 

guaranteed by the Secretary of the Treasury 

and use the bond proceeds to make loans to 

Eligible CDFIs for eligible community and 

economic development purposes. In 2013, the 

program approved term sheets for $325 

million in bonds that, when issued, will be 

guaranteed by Treasury for community and 

economic development financing for 

affordable multi-family rental housing, 

healthcare facilities, charter schools, and 

Department of the Treasury - Budget in Brief 39
commercial real estate in low-income or 

underserved rural areas. 

Administration ($23,600,000 from direct 

appropriations) 

Administration encompasses the CDFI Fund’s 

operational support and management activities 

for each of the monetary awards, bond 

guarantee, and tax credit programs that it 

administers. This includes finalizing the terms 

of assistance agreements with awardees, 

making disbursements, and monitoring 

awardee compliance with the terms of their 

multi-year assistance and allocation 

agreements. In addition, resources will be 

utilized for a business application

enhancement upgrade and external program 

research evaluations. Administration funds 

will also support the non-monetary award 

programs and activities (the NMTC Program, 

CDFI and CDE certification, and 

recertification) and the administration of the 

CDFI Bond Guarantee Program. 

Legislative Proposals

Treasury proposes to extend the CDFI Bond 

Guarantee Program through FY 2015, one year 

beyond its existing sunset date at the end of 

FY 2014. 

CDFI Performance by Budget Activity

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Community Development 

Financial Institutions Program

CDFI - Amount of 

Loans/Investments Originated 

(Annual) $ millions

1,228.0 1,298.0 1,978.0 1,690.0 1,700.0

Administration ALL - Award Cycle Time 7.4 6.5 6.8 7.0 7.0

Administration ALL - Jobs Created/Maintained 55,274 57,023 50,353 55,000 55,000

New Markets Tax Credit Program Community Development Entities' 

Annual Qualified Equity 

Investments In Low-Income 

Communities ($ billions)

4.7 5.5 4.5 5.0 5.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

In the FY 2013 funding round of the CDFI 

Program, the CDFI Fund received applications 

from 400 organizations, requesting $403

million in financial and technical assistance 

awards and the Healthy Food Financing 

Initiative (HFFI). The CDFI Fund awarded 

more than $172 million in grants to 191 CDFIs 

serving distressed communities in 37 states 

and the District of Columbia, including $22.3 

million for HFFI. This activity shows that the 

demand for CDFI Fund financing continues to 

be robust. 

As detailed in the CDFI Fund Performance by 

Budget Activity Table, in FY 2013, CDFI 

awardees reported originating loans totaling 

more than $1.9 billion, exceeding the target.

The target was exceeded largely due to the 

considerable growth in assets of CDFI 

awardees which is reflected by the increase in 

the amount and number of loans. The targets 

for FYs 2014 and 2015 have been adjusted 

upward to reflect the projected increase in 

lending by CDFIs in the next year. 

In FY 2013, the CDFI Fund completed its 

program application-award cycle time in 6.8 

months, within the target of 7 months. The 

Department of the Treasury - Budget in Brief 40
target is well calibrated and remains set at 7

months in FYs 2014 and 2015. 

In FY 2013, the CDFI Fund reported for its 

All-jobs created and maintained measure a 

total of 50,353 which slightly exceeded the 

target. The increase in the target for FY 2014

reflects the anticipated increase in tax credit 

authority.

In FY 2013, NMTC allocatees reported

making annual qualified investments of nearly 

$4.9 billion in low-income communities. Of 

these new investments, more than $2.6 billion 

went into non-real estate businesses, and more 

than $2.2 billion went into real estate 

activities. Allocatees reported attracting $4.8 

billion in Qualified Equity Investments, 

slightly exceeding the annual target of $4.5

billion. The FY 2014 target increase to $5.0 

billion reflects the total available tax credit 

authority to make additional qualified equity 

investments.

Department of the Treasury - Budget in Brief 41
Department of the Treasury - Budget in Brief 42
Financial Crimes Enforcement Network

Program Summary by Budget Activity

Dollars in thousands

FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Level Enacted Request $ Change % Change

BSA Administration and Analysis $104,993 $112,000 $108,661 ($3,339) -2.98%

Subtotal, Financial Crimes Enforcement 

Network $104,993 $112,000 $108,661 ($3,339) -2.98%

Offsetting Collections - Reimbursables $3,000 $3,000 $3,000 $0 0.00%

Recovery from Prior Years $500 $500 $500 $0 0.00%

Unobligated Balances from Prior Years $31,000 $40,000 $40,000 $0 0.00%

Total Program Operating Level $139,493 $155,500 $152,161 ($3,339) -2.15%

Direct FTE 342 345 345 0 0.00%

Reimbursable FTE 1 1 1 0 0.00%

Total FTE 343 346 346 0 0.00%

Summary 

The mission of Financial Crimes Enforcement 

Network (FinCEN) is to safeguard the 

financial system from illicit use and combat 

money laundering and promote national 

security through the collection, analysis, and 

dissemination of financial intelligence and 

strategic use of financial authorities. FinCEN 

directly supports the Department of the 

Treasury’s (the Department) strategic goal to 

“Safeguard the financial system and use 

financial measures to counter national security 

threats.” 

In carrying out its mission, FinCEN has 

numerous statutory areas of responsibility: 

developing and issuing regulations under the 

Bank Secrecy Act (BSA); enforcing 

compliance with the BSA in partnership with 

regulatory partners; serving as the U.S. 

Financial Intelligence Unit (FIU) along with a 

network of FIUs in more than 130 partner 

countries; receiving millions of new BSA 

reports each year and maintaining a database 

of over 170 million reports; analyzing and 

disseminating financial intelligence to law 

enforcement, regulators, and other foreign 

FIUs; and bringing together the disparate 

interests of law enforcement, FIU, regulatory 

partners, and industry. 

FinCEN’s priorities include: 

• Target examination and enforcement 

efforts to high priority areas; 

• Expand understanding and analysis of 

illicit networks, institutions, jurisdictions, 

and schemes; 

• Ensure the BSA regulatory structure 

effectively and efficiently targets illicit 

financing risks; 

• Manage the efficient collection, 

processing, and retrieval of BSA data; and 

• Foster strong public-and private 

partnerships with the financial industry. 

Department of the Treasury - Budget in Brief 43
FinCEN FY 2015 Budget Highlights 

Dollars in Thousands

Financial Crimes Enforcement Network FTE Amount

FY 2014 Enacted 345 $112,000

Changes to Base:

Maintaining Current Levels (MCLs): - $1,987

Pay-Raise - $588

FERS Contribution Increase - $488

Non-Pay - $911

Non-Recurring Costs: - ($4,146)

One-Time Information Technology 

Investment - ($2,146)

Enhanced Advanced Analytics SAS 

Support - ($2,000)

Subtotal Changes to Base - ($2,159)

Total FY 2015 Base 345 $109,841

Program Changes:

Program Decreases: - ($1,180)

Contract Efficiencies - ($1,180)

Total FY 2015 Request 345 $108,661

FY 2015 Budget Adjustments 

Maintaining Current Level (MCLs) 

Pay-Raise +$588,000 / +0 FTE

Funds are requested for the January 2015 payraise and the annualization of the 2014 payraise. 

FERS Contribution Increase +$488,000 / +0 

FTE 

Funds are requested for increases in agency 

contributions to Federal Employees 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$911,000 / +0 FTE

Funds are requested for non-labor costs such 

as travel, contracts, rent, supplies, and 

equipment. 

Non-Recurring Costs 

One-Time Information Technology 

Investment -$2,146,000 / +0 FTE 

Funding that was used in FY 2014 to upgrade 

information technology and evaluate new 

technology innovations is non-recurred. For 

example, FinCEN invested in new technology 

during FY 2014 to evaluate a proof of concept 

for a new storage technology to meet 

increasing storage demands. 

Enhanced Advanced Analytics SAS Support 

-$2,000,000 / +0 FTE 

Funding that was used to expand SAS 

advanced analytical contractor support is nonrecurred. This one-time investment allowed 

FinCEN to strengthen the organization’s use of 

new BSA IT Modernization analytical 

capabilities. This support allowed FinCEN to 

exploit financial intelligence data and 

proactively identify targets through the 

development and refinement of text mining or 

data extracts. 

Program Decreases 

Contract Efficiencies -$1,180,000 / +0 FTE

Savings are expected to result from continued 

evaluation of contracts for strategic sourcing 

and negotiation of more advantageous contract 

terms. FinCEN will also reduce commercial 

database contracts and contract case support. 

The commercial databases are used as one of 

the components in the intelligence analysis 

reports and include sources such as 

Lexis/Nexis, Clear, and Dun/Bradstreet. The 

contract case support provides research of 

persons/businesses and other related 

information using BSA data for FIU partners 

who are not permitted direct access to the BSA 

data. To achieve these efficiency savings, 

FinCEN will examine all contracts and ensure 

reductions minimize impact to its mission.

Explanation of Budget Activities

BSA Administration and Analysis 

($108,661,000 from direct appropriations, 

$3,000,000 from reimbursable resources) 

The programs funded by this budget activity 

support the Treasury strategic goal to 

safeguard the financial system and use 

financial measures to counter national security 

threats. This activity comprises FinCEN’s 

efforts to develop and issue regulations under 

the Bank Secrecy Act (BSA); enforce 

compliance with the BSA in partnership with 

regulatory partners and as the sole BSA 

regulator across numerous industries; receive 

BSA reports and maintain a database; analyze 

Department of the Treasury - Budget in Brief 44
and disseminate financial intelligence to 

Federal, state, and local law enforcement, 

Federal and state regulators, foreign financial 

intelligence units, and industry; and serve as 

the United States FIU, maintaining network of 

information sharing with FIUs in partner 

countries. As administrator of the BSA, 

FinCEN must ensure the effective 

management, accessibility, dissemination, and 

use of the highly sensitive confidential 

information collected under the Act. FinCEN 

provides authorized law enforcement, 

regulatory, and intelligence agencies direct 

access to BSA information. 

The goal owner for this budget activity is the 

Director of FinCEN. 

Legislative Proposals

FinCEN has no legislative proposals.

 

FinCEN Performance by Budget Activity

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

BSA Administration and Analysis Percentage of customers finding 

FinCEN’s research, analysis, and 

advanced analytics contribute to 

the safeguarding of the financial 

system, combating money 

laundering, and counter terrorist 

financing 

86.0 83.0 81.0 83.0 85.0

BSA Administration and Analysis Percentage of users finding that 

the financial intelligence collected 

by FinCEN pursuant its 

regulations provides valuable 

information to safeguard the 

financial system, combat money 

laundering, and counter terrorist 

financing

89.0 90.0 80.0 85.0 90.0

Key: DISC - Discontinued and B – Baseline

Description of Performance

FinCEN supports the following Treasury 

strategic objectives: 

 Identify priority threats to the financial 

system using intelligence analysis and 

outreach to the financial sector; 

 Develop, implement, and enforce sanctions 

and other targeted financial measures; and 

 Protect the integrity of the financial system 

by implementing, promoting, and 

enforcing anti-money laundering and 

counterterrorism financing standards. 

To support FinCEN’s objective to adopt strong 

anti-money laundering and counterterrorism 

financing regulatory authorities, FinCEN 

tracks the percentage of users finding that 

financial intelligence collected by FinCEN 

pursuant its regulations provides valuable 

information to safeguard the financial system, 

combat money laundering, and counter 

terrorist financing. In FY 2013, 80 percent of 

customers found the FinCEN data provides 

valuable information. FinCEN did not to meet 

its target of 90 percent. We believe that the 

decrease in percentage of customers finding 

FinCEN’s BSA data provides valuable 

information was impacted by the limited 

experience that users had with FinCEN’s new 

BSA query tool. Most users had access to the 

new FinCEN Query tool for only a few months 

prior to completion of this survey. It is 

understandable that our users would need more 

time to transition to our new system and, 

unfortunately, the transition period coincided 

with our performance survey schedule. 

Department of the Treasury - Budget in Brief 45
 

To support the objective to use research, 

analysis, and advanced analytics to identify 

and explain priority threats to the financial 

system, FinCEN tracks the percentage of 

customers finding FinCEN’s research, 

analysis, and advanced analytics contribute to 

the safeguarding of the financial system, 

combating money laundering, and counter 

terrorist financing. In FY 2013, FinCEN 

scored 81 percent, narrowly missing its target 

of 83 percent finding the domestic analytic 

reports valuable. FinCEN attributes this lower 

score to declines in satisfaction with proactive 

products resulting from its focus on other 

mission related priorities and types of 

products. FinCEN created an analyst working 

group to review its customers/product types 

and make recommendations for enhancements 

and broader dissemination for greater impact. 

FinCEN has also increased its emphasis on 

production of proactive products, and believes 

it will be able to achieve a higher percentage 

of customers, who find the analytical products 

valuable with more focused products and 

targeted dissemination in the future. 

Department of the Treasury - Budget in Brief 46
Alcohol and Tobacco Tax and Trade Bureau

Program Summary by Budget Activity 

Dollars in thousands

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Level Enacted Request $ Change % Change

Collect the Revenue $48,927 $52,470 $49,940 ($2,530) -4.82%

Protect the Public $45,727 $46,530 $46,060 ($470) -1.01%

Subtotal, Alcohol and Tobacco Tax and 

Trade Bureau $94,654 $99,000 $96,000 ($3,000) -3.03%

Offsetting Collections - Reimbursables $5,947 $6,512 $6,512 $0 0.00%

Appropriations Transferred from IRS Program 

Integrity Cap Adjustment $0 $0 $5,000 $5,000 NA

Total Program Operating Level $100,601 $105,512 $107,512 $2,000 1.90%

Direct FTE 465 473 473 0 0.00%

Reimbursable FTE 15 9 9 0 0.00%

Appropriations Transferred from IRS Program 

Integrity Cap Adjustment FTE 0 0 35 35 NA

Total FTE 480 482 517 35 7.26%

Summary 

The Alcohol and Tobacco Tax and Trade 

Bureau (TTB) serves as the nation’s primary 

Federal authority in the regulation and excise 

tax administration of the alcohol and tobacco 

industries. TTB is responsible for the 

administration and enforcement of the Internal 

Revenue Code associated with the collection 

of excise taxes on alcohol, tobacco, firearms, 

and ammunition, and the Federal Alcohol 

Administration Act, which provides for the 

regulation of those engaged in the alcohol 

beverage industry and the protection of U.S. 

consumers by ensuring the integrity of alcohol 

beverage labels and products. 

In FY 2015, TTB will continue to focus its 

efforts on enforcing compliance with alcohol, 

tobacco, firearms, and ammunition laws and 

regulations, in the interest of collecting all 

appropriate excise taxes, and promoting a 

marketplace for alcohol beverages that 

complies fully with Federal production, 

labeling, advertising, and marketing standards. 

The FY 2015 President’s Budget request 

enables TTB to continue its programs and 

activities necessary to meet the performance 

measures that support TTB’s strategic goals of 

collecting revenue and protecting the public. 

Total resources required to support TTB 

activities for FY 2015 are $107,512,000, 

including $96,000,000 from direct 

appropriations, $6,512,000 from other 

offsetting collections and reimbursable 

programs, and $5,000,000 in appropriations 

transferred from other accounts. 

 

Department of the Treasury - Budget in Brief 47
TTB FY 2015 Budget Highlights

Dollars in Thousands

Alcohol and Tobacco Tax and Trade 

Bureau FTE Amount

FY 2014 Enacted 473 $99,000

Changes to Base:

Adjustment to Request - ($2,000)

Funding for Special Agents Provided in 

Cap Adjustment Transfer - ($2,000)

Maintaining Current Levels (MCLs): - $1,824

Pay-Raise - $677

FERS Contribution Increase - $514

Non-Pay - $633

Efficiency Savings: - ($2,824)

Contract Reduction Savings - ($1,900)

Infrastructure Cost Reduction - ($156)

Other Efficiency Savings from 

Operations - ($768)

Subtotal Changes to Base - ($3,000)

Total FY 2015 Base 473 $96,000

Program Changes:

Program Increases: 35 $5,000

Alcohol and Tobacco Enforcement 

Program 35 $5,000

Total FY 2015 Operating Level 508 $101,000

Program Integrity Cap Adjustment 

Included in IRS Budget Request - ($5,000)

Total FY 2015 Net Appropriation Request 508 $96,000

FY 2015 Budget Adjustments 

Adjustment to Request 

Funding for Special Agents Provided in Cap 

Adjustment Transfer -$2,000,000 / +0 FTE 

In FY 2015, the Administration proposes to 

fund criminal enforcement activities and 

agents by including a request in the Internal 

Revenue Services (IRS) budget for a program 

integrity cap adjustment for both TTB and IRS 

to cover tax enforcement and compliance, with 

a transfer of funds to be made from the IRS to 

TTB to cover these activities. TTB will 

reimburse the IRS for the use of its special law 

enforcement agents to target tobacco 

smuggling and other criminal diversion 

activities.

Maintaining Current Level (MCLs) 

Pay-Raise +$677,000 / +0 FTE

Funds are requested for the January 2015 payraise and the annualization of the 2014 payraise. 

FERS Contribution Increase +$514,000 / +0 

FTE

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$633,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment. 

Efficiency Savings 

Contract Reduction Savings -$1,900,000 / +0 

FTE 

TTB will reduce costs related to its 

information technology commercial contracts 

and shared services contracts, and by rescoping other commercial contract services. 

Infrastructure Cost Reduction -$156,000 / +0 

FTE 

During the past few years, TTB has launched 

an aggressive telework program. This has 

enabled TTB to close half of its field offices, 

with the remaining field offices being vital to 

TTB’s mission. TTB is now reconfiguring and 

reducing its headquarters office space in 

Washington, D.C. TTB expects to achieve 

cumulative savings of $506,000 over fiscal 

years 2014 and 2015, of which $156,000 will 

be realized in FY 2015 from reduced rent, 

utilities and security costs. 

Other Efficiency Savings from Operations 

-$768,000 / +0 FTE 

TTB will further reduce its operational costs 

through savings in administrative overhead 

and its program operations. 

Program Increases 

Alcohol and Tobacco Enforcement Program 

+$5,000,000 / +35 FTE 

The FY 2015 President’s Budget includes a 

proposal to amend section 251 of the Balanced 

Budget and Emergency Deficit Control Act of 

Department of the Treasury - Budget in Brief 48
1985, as amended, to provide a program 

integrity cap adjustment of $5 million (of 

which $2 million will be used for agent 

support) for TTB’s tax enforcement and 

compliance program to narrow the tax gap in 

the tobacco and alcohol industries and reduce 

the deficit through increased revenue 

collections. This specific funding request has 

been included under the IRS budget, which 

will include the tax enforcement and 

compliance program integrity cap adjustment 

for both the IRS and TTB. Under the TTB 

budget, this item is being reported as 

“Appropriations Transferred from IRS 

Program Integrity Cap Adjustment.” 

The proposed cap adjustment for TTB tax 

enforcement and compliance activities 

includes $5 million to support the existing 

program and new revenue-producing tax 

compliance initiatives and $5 million in 

additional new initiatives each year from 2016 

through 2019. TTB will target known points 

in the supply chain that are susceptible to 

diversion activity and prioritize forensic audits 

and investigations of high-risk activity and 

entities in the alcohol and tobacco trade. 

Because these enforcement initiatives must be 

sustained over time in order to maximize their 

potential taxpayer returns, the total above-base 

adjustment funding is $193 million over the 

10-year period. Over this same time period, 

these additional investments will generate an 

estimated $285 million in additional tax 

revenue over the 10-year period. The net 

savings from these investments is $92 million. 

Program Integrity Cap Adjustment Included 

in IRS Budget Request -$5,000,000 / +0 FTE 

This adjustment ensures that the program 

increase for TTB’s Alcohol and Tobacco 

Enforcement Program is reflected only once in 

the 2015 President’s Budget as part of the 

IRS’s program integrity cap adjustment 

Explanation of Budget Activities

Collect the Revenue ($49,940,000 from direct 

appropriations, $3,451,000 from 

reimbursable resources, and a transfer of 

$5,000,000) 

This budget activity includes all tax 

processing, verification, enforcement, and 

outreach efforts related to administering the 

Federal excise tax on alcohol, tobacco, 

firearms, and ammunition products. TTB 

regulates and collects taxes from distilleries, 

breweries, bonded wineries, bonded wine 

cellars, manufacturers of cigarette papers and 

tubes, manufacturers of tobacco products, and 

manufacturers and importers of firearms and 

ammunition. In ensuring a level playing field 

for all those engaged in the trade of these 

strictly regulated commodities, TTB also takes 

appropriate enforcement action to detect and 

address diversion activity and ensure all 

products sold in the marketplace are properly 

taxpaid. In FY 2013, excise tax collections 

reached $14.3 billion for tobacco products, 

$7.9 billion for alcohol beverage products, and 

$763 million for firearms and ammunition. 

This budget activity supports the TTB strategic 

goal of ensuring that industry remits the proper 

Federal tax on these products and the Treasury 

strategic objective to improve the execution of 

the tax code. 

Protect the Public ($46,060,000 from direct 

appropriations, $3,061,000 from 

reimbursable resources) 

This budget activity funds the programs that 

ensure the integrity of the products and 

industry members in the marketplace by 

promoting compliance with Federal alcohol 

and tobacco laws and regulations by the 

66,600 businesses that hold a TTB permit or 

registration. This budget activity also supports 

the TTB and Treasury objectives to facilitate 

fair and lawful commercial trade in the alcohol 

and tobacco commodities. This budget 

activity supports the TTB strategic goal of 

assuring that alcohol and tobacco industry 

Department of the Treasury - Budget in Brief 49
operators meet permit qualifications, and 

alcohol beverage products comply with 

Federal production, labeling, and marketing 

requirements. 

Legislative Proposals

TTB has no legislative proposals. 

TTB Performance by Budget Activity

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Collect the Revenue Amount of Revenue Collected Per 

Program Dollar 

468.0 449.0 457.0 400.0 400.0

Collect the Revenue Percent of Voluntary Compliance 

from Large Taxpayers in Filing 

Tax Payments Timely and 

Accurately (In Terms of Revenue) 

95.0 92.0 92.0 91.0 92.0

Protect the Public Average Number of Days to 

Process an Original Permit 

Application for a New Alcohol or 

Tobacco Business 

77.0 69.0 81.0 75.0 62.0

Protect the Public Percent of Electronically Filed 

Certificate of Label Approval 

Applications 

88.0 91.0 92.0 93.0 94.0

Protect the Public Percentage of Importers Identified 

by TTB as Illegally Operating 

without a Federal Permit (%) 

14.0 13.0 11.0 12.0 11.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

The bureau continues to collect the Federal 

excise taxes due on its regulated commodities 

in a highly efficient manner, and continues to 

enforce compliance with alcohol and tobacco 

laws and regulations. During FY 2013, TTB 

met four out of five of its targeted performance 

goals, while showing continued improvements 

in all other performance metrics. The bureau 

plans to continue to monitor its performance, 

and will use performance information to both 

measure and improve the effectiveness of its 

programs. 

The investments in the Collect the Revenue 

activity resulted in the following performance 

highlights and accomplishments during 

FY 2013: 

 TTB collected $23 billion in excise taxes 

and other revenues from 9,300 taxpayers in 

the alcohol, tobacco, firearms, and 

ammunition industries. The return on 

investment for the Collect the Revenue 

program was $457 for every $1 expended 

on collection activities. 

 TTB opened 17 new criminal cases 

involving the diversion of alcohol and 

tobacco products, bringing the total 

number of cases opened during three years 

of operations to 64. These cases represent 

nearly $350 million in tax evasion and, in 

FY 2013, the total amount of tax loss at 

issue in prosecuted cases exceeded $57 

million. TTB’s enforcement efforts also 

resulted in an additional $117 million in 

seizures and forfeitures. 

 TTB completed 520 audits, examinations, 

and revenue investigations, which 

contributed to the identification of 

additional tax revenue of nearly $40 

million. 

Department of the Treasury - Budget in Brief 50
 TTB processed $358 million in cover-over 

payments to Puerto Rico and the U.S. 

Virgin Islands. Federal excise taxes 

collected on rum produced in Puerto Rico 

and the Virgin Islands that are 

subsequently imported into the United 

States are “covered-over,” or paid into the 

treasuries of Puerto Rico and the U.S. 

Virgin Islands. 

 TTB processed $345 million in drawback 

claims. Under current law, persons who 

use nonbeverage alcohol in the 

manufacture of medicines, food products, 

flavors, extracts, or perfume and other nonpotable products may be eligible to claim 

drawback of excise taxes paid on distilled 

spirits used in their products. 

The investments in Protect the Public activity 

resulted in the following performance 

highlights and accomplishments during FY 

2013: 

 TTB issued 119,000 Certificates of Label 

Approval (COLA) to ensure compliance 

with the FAA Act provisions that prevent 

consumer deception. TTB also achieved a 

92 percent electronic filing rate for alcohol 

beverage label applications. Federal law 

prohibits the import or domestic bottling of 

an alcohol beverage without an approved 

COLA, making this TTB service integral 

to U.S. business operations. 

 TTB issued approximately 5,900 Federal 

permits. A TTB permit or registration is 

required before a business can lawfully 

operate in the alcohol and tobacco 

industries. TTB ensures a fair and lawful 

marketplace and protects consumers by 

screening permit applicants to ensure only 

qualified persons engage in operations in 

the alcohol and tobacco industries. 

 TTB completed more than 275 field 

investigations of industry members in the 

areas of permit qualification, consumer 

complaints, trade practice violations, and 

product integrity verifications, all of which 

serve the bureau’s dual mission of revenue 

collection and consumer protection. 

Department of the Treasury - Budget in Brief 51
Department of the Treasury - Budget in Brief 52
Fiscal Service 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Level Enacted Request $ Change % Change

Collections $20,851 $21,531 $24,293 $2,762 12.83%

Do Not Pay Business Center $5,000 $5,000 $5,064 $64 1.28%

Government Agency Investment Services $14,728 $13,704 $13,055 ($649) -4.74%

Government-wide Accounting and Reporting $63,457 $65,486 $65,486 $0 0.00%

Payments $125,570 $126,636 $121,715 ($4,921) -3.89%

Retail Securities Services $110,876 $100,789 $95,237 ($5,552) -5.51%

Summary Debt Accounting $8,443 $4,737 $4,325 ($412) -8.70%

Wholesale Securities Services $22,092 $22,282 $19,009 ($3,273) -14.69%

Subtotal, Fiscal Service $371,017 $360,165 $348,184 ($11,981) -3.33%

Offsetting Collections - Reimbursables $247,551 $239,342 $241,587 $2,245 0.94%

Unobligated Balances from Prior Years $2,000 $0 $0 $0 NA

Total Program Operating Level $620,568 $599,507 $589,771 ($9,736) -1.62%

Direct FTE 1,900 1,676 1,636 (40) -2.39%

Reimbursable FTE 619 714 714 0 0.00%

Total FTE 2,519 2,390 2,350 (40) -1.67%

* In FY 2013 FMS and BPD resources were managed separately. FMS direct programs included: Collections, Payments, and Government-wide 

Accounting and Reporting. BPD programs included: Do Not Pay Business Center, Government Agency Investment Services, Retail Securities 

Services, Summary Debt Accounting, and Wholesale Securities Services. 

* Total Appropriated Resources in FY 2013 included $1 million in Legacy Treasury Direct User Fee collections. 

* A portion of the Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt Collection Improvement Act of 1996 (DCIA) 

Summary 

The Bureau of the Fiscal Service (Fiscal 

Service) plays a key role in supporting three of 

the Department of the Treasury's strategic 

goals, which are: Promote domestic economic 

growth and stability while continuing reforms 

of the financial system; Fairly and effectively 

reform and modernize federal financial 

management, accounting, and tax systems; 

and Create a 21st century approach to 

government by improving efficiency, 

effectiveness and customer interaction. The 

Fiscal Service is committed to delivering 

strong leadership, exceptional operational 

services, and a clear vision focused on positive 

transformational change of government-wide 

financial management and shared services. 

Operationally, the Fiscal Service provides 

central payment services to Federal program 

agencies (FPAs); operates the Federal 

Government's collections and deposit systems; 

provides government-wide accounting and 

reporting services; borrows the money needed 

to operate the Federal Government; handles all 

Treasury debt financing operations; issues, 

services, and accounts for all Treasury 

marketable securities and non-marketable 

securities; provides reimbursable support 

services to Federal agencies; and manages the 

collection of delinquent debt. 

The mission and vision of the Fiscal Service 

are reinforced through our strategic goals, 

which promote leadership and innovation, an 

engaged and highly effective workforce, 

delivery of exceptional programs and services, 

Department of the Treasury - Budget in Brief 53
data transparency and usefulness, and 

expansion of shared services. Finally, the 

Fiscal Service is playing an increasingly 

growing role in advancing improvements in 

government-wide financial management. 

Fiscal Service FY 2015 Budget Highlights 

Dollars in Thousands

Fiscal Service FTE Amount

FY 2014 Enacted 1,676 $360,165

Changes to Base:

Maintaining Current Levels (MCLs): - $7,469

Pay-Raise - $2,804

FERS Contribution Increase - $1,943

Non-Pay - $2,722

Non-Recurring Costs: - ($11,064)

Consolidation in Support of the Fiscal

Service - ($8,740)

Treasury Retail Investment Manager - ($2,324)

Efficiency Savings: (40) ($8,386)

Across the Board Program Reduction - ($2,843)

Paperless Treasury (40) ($5,543)

Subtotal Changes to Base (40) ($11,981)

Total FY 2015 Base 1,636 $348,184

Total FY 2015 Request 1,636 $348,184

FY 2014 Budget Adjustments 

Maintaining Current Level (MCLs) 

Pay-Raise +$2,804,000 / +0 FTE 

Funds are requested for the proposed January 

2015 pay-raise and annualization of the 2014 

pay raise. 

FERS Contribution Increase 

+$1,943,000 / +0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$2,722,000 / +0 FTE 

Funds are requested for inflation adjustments 

for non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Non-Recurring Costs 

Consolidation in Support of the Fiscal 

Service -$8,740,000 / +0 FTE 

This funding was requested to support the 

consolidation of administrative, IT and 

accounting functions including outplacement 

and training services; voluntary employee 

relocations; and space reconfiguration in FY 

2014 and will no longer be needed in FY 2015. 

Treasury Retail Investment Manager 

-$2,324,000 / +0 FTE 

The proposed new sales/service platform will 

no longer require these resources in FY 2015, 

and therefore the funding can be non-recurred. 

Efficiency Savings 

Across the Board Program Reduction 

-$2,843,000 / +0 FTE 

The Fiscal Service will focus on improving the 

efficiency of its operations through a 

disciplined process of productivity 

improvement. 

Paperless Treasury -$5,543,000 / -40 FTE 

Savings of agent fees, postage and printing by 

eliminating new issues of over-the-counter 

paper savings bonds. In addition, converting 

checks to electronic funds transfer has allowed 

the Fiscal Service to decrease its payments 

centers from four to two, generating 

efficiencies and savings. 

Opportunity, Security, and Growth 

Initiative 

As the Federal Government’s financial 

manager, Treasury is uniquely positioned to 

improve the transparency and accountability of 

Federal financial transactions. Treasury’s 

ultimate vision is to provide reliable, timely, 

secure, and consumable financial management 

data for the purpose of promoting 

transparency, facilitating better decision 

making, and improving operational efficiency. 

The Budget also requests support, above the 

request presented here, from the new 

Opportunity, Growth, and Security Initiative to 

improve USAspending.gov’s appearance and 

functionality for policy makers and the public.

Department of the Treasury - Budget in Brief 54
Explanation of Budget Activities 

Collections ($24,293,000 from direct 

appropriations, $0 from reimbursable 

resources) 

The Collections Program supports Treasury's 

strategic objective “to improve the 

disbursement and collection of Federal funds 

and reduce improper payments made by the 

U.S. government.” The Fiscal Service 

manages the collection of Federal revenues 

such as individual and corporate income tax 

deposits, customs duties, loan repayments, 

fines, and proceeds from leases. In addition, 

the Fiscal Service establishes and implements 

collection policies, regulations, standards, and 

procedures for the Federal Government. 

Debt Collection ($0 from direct 

appropriations, $154,818,000 from 

reimbursable resources) 

The Fiscal Service’s Debt Collection Program 

supports Treasury’s strategic objective “to 

improve the disbursement and collection of 

federal funds and reduce improper payments 

made by the U.S. government.” The Fiscal 

Service collects delinquent government and 

child support debt by providing centralized 

debt collection, oversight, and operational 

services to FPAs and states pursuant to the 

Debt Collection Improvement Act of 1996 

(DCIA) and related legislation. The Fiscal 

Service uses two debt collection programs: 

Treasury Offset Program (TOP) and CrossServicing. 

Do Not Pay Business Center ($5,064,000 

from direct appropriations, $790,000 from 

reimbursable resources) 

The Fiscal Service’s Do Not Pay Business 

Center Program supports Treasury’s strategic 

objective “to improve the efficiency and 

transparency of Federal financial management 

and government-wide accounting.” Following 

the June 2010 Presidential Memorandum on 

Enhancement of Payment Accuracy Through a 

“Do Not Pay List,” the Do Not Pay Business 

Center was established for use by federallyfunded programs at all departments and 

agencies in order to achieve the goal of 

preventing ineligible recipients from receiving 

payments or awards from the Federal 

Government. The Do Not Pay Business 

Center is a significant step toward meeting the 

President’s directive to establish a single-entry 

point that departments and agencies can access 

to determine eligibility information prior to 

making an award or payment. 

Government Agency Investment Services 

($13,055,000 from direct appropriations, 

$2,164,000 from reimbursable resources) 

The Government Agency Investment Services 

(GAIS) Program assists in fulfilling Treasury’s 

strategic objective “to improve the efficiency 

and transparency of federal financial 

management and government-wide 

accounting.” This program consists of three 

distinct components: Federal Investments, 

which includes issuing, servicing and 

redeeming Government Account Series 

securities for federal agencies that have 

legislative authority to invest; Special Purpose 

Securities that administers State and Local 

Government Series securities; and Federal 

Borrowings, which represents Treasury’s role 

in the federal loan program. 

Government-wide Accounting and Reporting 

($65,486,000 from direct appropriations, 

$879,000 from reimbursable resources) 

The Government-wide Accounting (GWA) 

Program supports Treasury’s strategic 

objective “to improve the efficiency and 

transparency of Federal financial management 

and government-wide accounting.” The GWA 

cash reporting function supports the national 

financial infrastructure and continues to obtain 

a clean opinion on the Audit of Non-entity 

Schedules of Government-wide Cash. The 

government-wide financial information is used 

within the Federal Government to support 

decision-making, and establish fiscal and debt 

Department of the Treasury - Budget in Brief 55
management policies; and by the public and 

private sectors to monitor the Government’s 

financial position. 

Payments ($121,715,000 from direct 

appropriations, $62,752,000 from 

reimbursable resources) 

The Payments Program supports the 

Treasury’s strategic objective “to improve the 

disbursement and collection of federal funds 

and reduce improper payments made by the 

U.S. government.” The Fiscal Service is 

responsible for managing and operating 

Federal payment systems and disbursing 

approximately 85 percent of all Federal 

payments. Major payments include: Social 

Security Benefits, Supplemental Security 

Income, Federal Pension Benefits, Veterans’ 

Compensation and Pension, Railroad 

Retirement Pensions, and tax refunds. 

The Payments Program is also responsible for 

controlling and providing financial integrity to 

the payments process through reconciliation, 

accounting, and claims activities. The claims 

activity settles claims against the United States 

resulting from Federal Government checks 

that have been forged, lost, stolen, or 

destroyed as well as claims and reclamations 

for Electronic Funds Transfer payments. The 

Fiscal Service also collects monies from those 

parties liable for fraudulent or otherwise 

improper negotiation of government checks. 

Retail Securities Services ($95,237,000 from 

direct appropriations, $15,917,000 from 

reimbursable resources) 

The Retail Securities Services (RSS) Program 

supports Treasury’s strategic objective “to 

promote savings and increased access to credit 

and affordable housing options, and job 

creation” by offering simple, safe, and 

affordable securities that enable Americans to 

save for their future. Products are targeted 

toward small investors looking to securely 

build savings. The program serves more than 

50 million investors by processing more than 

15 million transactions annually. 

Summary Debt Accounting ($4,325,000 from 

direct appropriations, $748,000 from 

reimbursable resources) 

The Summary Debt Accounting (SDA) 

Program supports Treasury’s strategic 

objective of “improving the efficiency and 

transparency of Federal financial management 

and government-wide accounting.” SDA is 

vital to meeting the Fiscal Service's 

responsibility to account for over $17 trillion 

of public debt and over $415 billion in related 

interest expenses incurred to finance the 

operations of the Federal Government. SDA 

coordinates with the Office of Fiscal 

Projections and GAIS during periods of a 

delay in raising the debt limit to ensure that the 

outstanding public debt subject to limit does 

not exceed the statutory limit. 

SDA reports daily on the balances and 

composition of the public debt, publishes the 

Monthly Statement of the Public Debt, and 

issues the annual, audited Schedules of Federal 

Debt (Schedules). The Schedules reports on 

the single largest liability in Treasury’s 

Agency Financial Report (AFR) and have 

received a clean opinion for the past 17 years. 

Wholesale Securities Services ($19,009,000 

from direct appropriations, $3,519,000 from 

reimbursable resources) 

The Wholesale Securities Services (WSS) 

Program supports Treasury’s strategic 

objective “to promote savings and increased 

access to credit and affordable housing 

options, and job creation.” WSS is responsible 

for the announcement, auction, issuance, and 

settlement of marketable Treasury bills, notes, 

bonds, and Treasury Inflation Protected 

Securities. The program also oversees that 

portion of the Federal infrastructure that 

provides for the transfer, custody, and 

redemption of all Treasury marketable 

Department of the Treasury - Budget in Brief 56
securities, which are purchased mostly by 

commercial market participants. 

Legislative Proposals 

1. Increase delinquent State income tax debt 

collections. Allow offset of Federal income 

tax refunds to collect delinquent State 

income taxes for out-of-state residents.

Estimated collections: $1.2 billion in State 

taxes over 10 years (no Federal revenue)

Under current law, the Fiscal Service may 

offset Federal tax refunds to collect delinquent 

State income tax obligations but only if the 

delinquent taxpayer resides in the State 

collecting the tax. This proposal would allow 

the Fiscal Service to offset Federal income tax 

refunds to collect delinquent State tax 

obligations regardless of where the debtor 

resides. For further details on this proposal, 

please see the Treasury Green Book. 

2. Reduce costs for states collecting 

delinquent income tax obligations. 

Estimated savings: $142.9 million over 10 

years (no Federal revenue) 

Under current law, the Fiscal Service may 

offset Federal tax refunds to collect delinquent 

State income tax obligations only after the 

State sends the delinquent debtor a notice by 

certified mail with return receipt. With respect 

to other types of debts that can be collected via 

Federal tax refund offset, for example, Federal 

nontax, child support, and State 

unemployment insurance compensation debts, 

the statute is silent as to the notice delivery 

method. However, the regulations require 

that, for all debts other than State income tax 

obligations, Federal and State creditor 

agencies send notices by regular first class 

mail. Similarly, notice requirements for other 

debt collection actions, including 

administrative wage garnishment, do not 

require delivery by certified mail. This 

proposal would remove the statutory 

requirement to use certified mail, thereby 

allowing the Fiscal Service to amend its 

regulations to permit states to send notices for 

delinquent State income tax obligations by 

first class mail, saving states certified mail 

costs and standardizing notice procedures 

across debt types. For further details on this 

proposal, please see the Treasury Green Book. 

3. Increase delinquent federal tax debt 

collections. Increase levy authority for 

payments to Medicare providers with 

delinquent tax debt. Estimated collections: 

$743 million over 10 years

The Budget proposes a change to the 

Department of the Treasury’s debt collection 

procedures that will increase the amount of 

delinquent taxes collected from Medicare 

providers. Through the Federal Payment Levy 

Program, the Treasury deducts (levies) a 

portion of a government payment to an 

individual or business in order to collect 

unpaid taxes. Pursuant to the Medicare 

Improvements for Patients and Providers Act 

of 2008, Treasury is authorized to 

continuously levy up to 15 percent of a 

payment to a Medicare provider in order to 

collect delinquent tax debt. The Budget 

proposal will allow Treasury to levy up to 100 

percent of a payment to a Medicare provider to 

collect unpaid taxes. For further details on this 

proposal, please see the Treasury Green Book. 

4. Increase delinquent federal non-tax debt 

collections. Authorize administrative bank 

garnishment of commercial accounts to 

collect non-tax debts. Estimated Collections: 

$320 million over 10 years

To reach income of commercial entities and 

other non-wage income and funds available to 

debtors owing delinquent non-tax obligations 

to the United States, this proposal would 

authorize agencies to issue garnishment orders 

to financial institutions without a court order. 

Agencies would be required to provide debtors 

with appropriate due process and other 

administrative protections to ensure that 

debtors have had the full opportunity to 

Department of the Treasury - Budget in Brief 57
contest the debts and/or enter into repayment 

agreements to avoid issuance of a court order 

as the last resort. The proposed authority 

would be available only to garnish commercial 

accounts of debtors that owe delinquent nontax 

debts, and would not be available to garnish 

consumer accounts. The legislation proposal 

would direct the Secretary of the Treasury to 

issue government-wide regulations 

implementing this authority. 

5. Increase and streamline recovery of 

unclaimed assets owed to the United States. 

Authorize Treasury to locate and recover 

assets of the United States and to retain a 

portion of amounts collected to pay for the 

costs of recovery. Estimated Recoveries: $25 

million over ten years

States and other entities hold assets in the 

name of the United States or in the name of 

departments, agencies, and other subdivisions 

of the Federal Government. Many agencies 

are not recovering these assets due to lack of 

expertise and funding. Under current authority, 

Treasury collects delinquent debts owed to the 

United States and retains a portion of 

collections, which is the sole source of funding 

for its debt collection operations. While 

unclaimed Federal assets are generally not 

considered to be delinquent debts, Treasury’s 

debt collection operations personnel have the 

skills and training to recover these assets. This 

legislation would authorize Treasury to use its 

resources to recover assets of the United 

States.

Fiscal Service Performance by Budget Activity 

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Collections Percentage Collected 

Electronically of Total Dollar 

Amount of Federal Government 

Receipts 

96.0 97.0 97.0 97.0 98.0

Debt Collection Amount of Delinquent Debt 

Collected Through All Available 

Tools ($ billions) 

6.17 6.17 7.02 7.2 7.5

Government Agency Investment 

Services

Percent of Respondents Selecting 

the Highest Rating of Customer 

Satisfaction with Government 

Agency Investment Services (%) 

60.0 60.0 61.0 62.0 62.0

Government-wide Accounting and 

Reporting

Percentage of Government-Wide 

Accounting Reports Issued Timely 

100.0 99.86 100.0 100.0 100.0

Payments Percentage of Treasury Payments 

and Associated Information Made 

Electronically 

84.3 88.0 92.5 95.0 95.0

Retail Securities Services Percentage of Retail Customer 

Service Transactions Completed 

within 5 Business Days (%) 

73.1 75.7 74.5 88.0 88.0

Summary Debt Accounting Cost Per Summary Debt 

Accounting Transaction ($) 

14.8 22.47 19.86 17.68 17.73

Wholesale Securities Services Percent of Auction Results 

Released in Two Minutes +/- 30 

Seconds (%) 

100.0 100.0 99.6 100.0 100.0

Key: DISC - Discontinued and B – Baseline 

Department of the Treasury - Budget in Brief 58
Description of Performance 

Collections: The measure, Percentage 

Collected Electronically of Total Dollar 

Amount of Federal Government Receipts, 

refers to the dollar value of collections 

received (settled) electronically. In FY 2013, 

97 percent of revenue collections were settled 

electronically. The Fiscal Service expects to 

maintain an electronic collections rate of at 

least 97 percent in FY 2014, with an increased 

target of 98 percent in FY 2015. 

Debt Collection: In FY 2013, the Fiscal 

Service exceeded the debt collection 

performance target, collecting $7.02 billion in 

delinquent debt. When completed in FY 2015, 

the TOP Next Generation will: handle 

increasingly larger volumes of debt and 

payment types; process new payment types; 

increase payment processing throughout to 

meet future needs; and meet all essential 

stakeholder needs. Additionally, the Fiscal 

Service anticipates several new legislative 

proposals to increase debt collection will be 

enacted in FY 2014 and be fully realized in 

FY 2015. 

The Fiscal Service’s goal for FY 2014 and 

FY 2015 is to collect $7.2 billion and $7.5 

billion, respectively, in delinquent debts by 

increasing the volume and timeliness of 

delinquent debt referrals, enhancing and 

expanding existing debt collection tools, and 

increasing the use of analytics to drive 

improved efficiency and effectiveness.

Do Not Pay Business Center: Since the Do 

Not Pay Business Center was launched in 

FY 2012, significant progress has been made 

towards providing agencies a one-stop-shop to 

verify eligibility prior to issuing a payment. 

With the enactment of the Improper Payments 

Elimination & Recovery Improvement Act of 

2012 (IPERIA), the Do Not Pay Business 

Center began supporting Executive Branch 

agencies in meeting the IPERIA requirement 

to verify all payments prior to issuance. The 

Do Not Pay program offers three options 

geared towards reducing improper payments: 

The Do Not Pay Portal, The Do Not Pay Data 

Analytics Service, and Payment Integration. 

Government Agency Investment Services: 

The GAIS Program strives to provide highquality customer service, reliable transaction 

processing, and accurate and timely payment 

distribution. To aid in measuring 

performance, the organization conducts an 

annual customer survey that focuses on both 

program and system satisfaction. Based on 

survey responses, the Fiscal Service plans to 

target areas of improvement with the intent to 

increase the percentage of customers rating 

GAIS as "Excellent." The Fiscal Service’s 

target percentage for customers rating GAIS as 

“Excellent” is 62 percent in FY 2014 and 

FY 2015. 

Government-wide Accounting and 

Reporting: In FY 2014, the Fiscal Service 

anticipates achieving its target of 100 percent 

timely provision of GWA reports. These 

reports include the Daily Treasury Statement, 

Monthly Treasury Statement, and Combined 

Statement. The Fiscal Service continues to 

achieve its targets by maintaining the 

established process of validating and 

reconciling data with reporting sources such as 

the Regional Finance Centers, FPAs, and 

various electronic deposit and payment 

applications. The bureau will continue 

modernization efforts to ensure the continued 

timeliness of these reports and anticipates it 

will achieve the 100 percent target for 

FY 2015. 

Payments: The measure Percentage of 

Treasury Payments and Associated 

Information Made Electronically supports the 

Paperless Treasury agency priority goal. Due 

to the continued success of the Go Direct and 

Direct Express® programs and 

implementation of the Paperless Treasury 

initiative, in FY 2013, the Fiscal Service has 

Department of the Treasury - Budget in Brief 59
issued over 97 percent of its benefit payments 

and over 95 percent of its total payments via 

EFT. The Fiscal Service expects to achieve its 

targets in FY 2014 and FY 2015 by expanding 

electronic conversion efforts to additional 

benefit agencies and payment types, such as 

other vendor miscellaneous payments and IRS 

refunds. 

Retail Securities Services: Several significant 

changes planned for the RSS program include: 

implementing a new financial services system, 

eliminating the majority of remaining paper 

savings bond issues, decommissioning several 

legacy systems, and deploying virtual case 

files and a customer self-service portal. These 

changes will significantly impact the future 

direction of the program; therefore, RSS is 

currently working to establish new 

performance measures.

Summary Debt Accounting: All financial 

activity related to the public debt of the United 

States is reported by the SDA Program. This 

is accomplished by collecting and reporting 

securities-related issue, redemption, and 

interest payment information on a daily basis. 

To improve operational effectiveness, the 

Fiscal Service completed several efforts to 

modernize the SDA business and system 

environment. This effort allowed SDA to more 

quickly respond to changes in reporting 

requirements, responsibilities, and financial 

information needs. A major component in the 

modernization effort was accomplished on 

November 18, 2013, with the implementation 

of the Summary Debt Accounting System 

(SDAS) to replace the Public Debt Accounting 

and Reporting System. 

Finally, SDA relies on cost per transaction to 

help manage the efficiency of the program. In 

response, the program estimates the cost per 

SDA transaction to be $17.68 in FY 2014 and 

$17.73 in FY 2015, which is a decrease from 

the FY 2013 actual cost of $19.86. The 

decrease beginning in FY 2014 is a direct 

result of reduced development costs related to 

the SDAS modernization project. 

 

Wholesale Securities Services: The Fiscal 

Service strives to efficiently deliver its debt 

financing operations, including auctions and 

buybacks, at the lowest possible cost. The 

Fiscal Service missed its FY 2013 target of 

100 percent for the measure Percent of 

Auction Results Released in Two Minutes +/- 

30 Seconds at 99.6 percent. Circumstances for 

one of the year’s 268 auctions required issuing 

a special clarification announcement. It is 

essential that WSS releases auction results 

accurately and consistently to support 

Treasury's mission to manage the 

Government’s finances effectively by issuing 

debt in a regular and predictable pattern. 

Ultimately, the accurate and timely release of 

the auction results contributes to the 

preservation of public confidence in Treasury 

securities and the stability of the financial 

market. WSS expects to achieve its target in 

the future. 

Department of the Treasury - Budget in Brief 60
Internal Revenue Service 

Program Summary by Appropriations Account and Budget Activity 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating Level1

Enacted2 Request $ Change % Change

Taxpayer Services $2,135,553 $2,156,554 $2,317,633 $161,079 7.47%

Pre-filing Taxpayer Assistance & Education 605,761 604,638 639,249 34,611 5.72%

Filing & Account Services 1,529,792 1,551,916 1,678,384 126,468 8.15%

Enforcement $4,949,178 $5,022,178 $5,371,826 $349,648 6.96%

Investigation 589,751 613,417 662,606 49,189 8.02%

Exam & Collections 4,210,108 4,257,836 4,538,881 281,045 6.60%

Regulatory 149,319 150,925 170,339 19,414 12.86%

Operations Support $3,800,943 $3,798,942 $4,456,858 $657,916 17.32%

Infrastructure 886,535 842,064 913,677 71,613 8.50%

Shared Services & Support 1,111,317 1,154,960 1,269,176 114,216 9.89%

Information Services 1,803,091 1,801,918 2,274,005 472,087 26.20%

Business Systems Modernization $312,938 $312,938 $330,210 $17,272 5.52%

Subtotal, Internal Revenue Service $11,198,612 $11,290,612 $12,476,527 $1,185,915 10.50%

Offsetting Collections - Reimbursables 94,278 100,197 101,419 1,222 1.22%

Offsetting Collections - Non Reimbursables 16,589 27,408 27,408 0 0.00% 

User Fees 395,684 395,684 395,684 0 0.00%

Recovery From Prior Years 13,629 0 0 0 NA

Unobligated Balances from Prior Years 335,648 291,657 265,301 (26,356) -9.04%

Transfers In/Out3

(1,204) 0 (5,000) (5,000) NA

Total Program Operating Level $12,053,236 $12,105,558 $13,261,339 $1,155,781 9.55%

Direct FTE 86,381 84,189 91,187 6,998 8.31%

Resources from Other Accounts4

5 5 5 0 0.00%

Reimbursable FTE 786 822 822 0 0.00%

User Fees FTE 676 676 676 0 0.00%

Total FTE 87,848 85,692 92,690 6,998 8.17%

1

FY 2013 Enacted represents the operating level after applying across-the-board rescission and reductions required by 

sequestration and an interappropriation transfer of $73M transferred from the Enforcement appropriation to the Taxpayer Services 

($13M) and Operations Support ($60M) appropriations. 

2

FY 2014 Enacted includes $92M in funding ($34 million in Taxpayer Services and $58 million in Operations Support). 

3Resources from Transfers In/Out include FY 2013 transfers between IRS and the Office of National Drug Control Policy (ONDCP) 

High Intensity Drug Trafficking Area (HIDTA) Program (net transfer $152K) and prior year user fees from the Operations Support 

and Business Systems Modernization (BSM) appropriations returned to the User Fees account (-$1.356M), and a FY 2015 transfer 

out to the Alcohol and Tobacco Tax and Trade Bureau (TTB) ($5M). 

4Resources from Other Accounts include Direct FTE from the Federal Highway Administration (5 FTE projected for FY 2013, FY 

2014, and FY 2015). 

Summary 

The Internal Revenue Service (IRS) 

administers the nation’s tax laws and collects 

the revenue that funds the Government. 

During FY 2013, the IRS processed more than 

241 million tax returns and collected 

Department of the Treasury - Budget in Brief 61
$2.9 trillion in taxes (gross receipts before tax 

refunds), 91 percent of Federal Government 

receipts. The IRS continues to focus on 

strengthening the public’s confidence in its 

effective administration of the nation’s tax 

system.

Through both taxpayer service and 

enforcement programs that protect the flow of 

revenue to the Government, the IRS remains 

committed to making the tax law easier to 

access and understand and to improving 

voluntary compliance and reducing the tax 

gap, the difference between taxes owed and 

taxes paid on time. Taxpayer service supports 

and protects the trillions of dollars in revenue 

that come into the Treasury each year 

voluntarily from taxpayers by helping them 

understand their obligations under the tax law. 

Enforcement pursues those who evade or 

misrepresent their tax responsibility. 

Total resources to support IRS activities for 

FY 2015 are $12,973,630,000. This includes 

$12,476,527,000 from direct appropriations, of 

which $480 million is provided via a program 

integrity cap adjustment intended to improve 

the integrity of the tax system, an estimated 

$101,419,000 from reimbursable programs, 

and an estimated $395,684,000 from user fees. 

The direct appropriation is $1,185,915,000 

more than the FY 2014 enacted level of 

$11,290,612,000.

The IRS Strategic Plan guides program and 

budget decisions and supports the Department 

of the Treasury FY 2014 to 2017 Strategic 

Plan, and Agency Priority Goal, which focuses 

on expanding the availability and improving 

the quality of customer service options. 

The IRS Strategic Plan goals are:

Deliver high quality and timely service to 

reduce taxpayer burden and encourage 

voluntary compliance

Effectively enforce the law to ensure 

compliance with tax responsibilities and 

combat fraud

The strategic objectives to deliver high quality 

and timely service to reduce taxpayer burden 

and encourage voluntary compliance are:

 Design tailored service approaches with a 

focus on digital customer service to meet 

taxpayer needs, preferences, and 

compliance behaviors in order to facilitate 

voluntary compliance;

 Deliver clear and focused outreach, 

communications, and education programs 

to assist taxpayer understanding of tax 

responsibilities and awareness of emerging 

tax laws;

 Provide timely assistance through a 

seamless, multi-channel service 

environment to encourage taxpayers to 

meet their tax obligations and accurately 

resolve their issues;

 Strengthen refund fraud prevention and 

provide prompt assistance to support 

victims of identity theft;

 Reduce taxpayer burden and increase 

return accuracy at filing through timely 

and efficient tax administration processing; 

 Improve service delivery and support 

effective tax administration by fostering 

strong relationships with our tax 

community and government partners; and

 Enhance the quality of tax services by 

strengthening the outreach, education, and 

tools provided to the tax professional 

community.

The strategic objectives to effectively enforce 

the law and to ensure compliance with tax 

responsibilities and combat fraud are:

 Enforce domestic and international 

compliance by strengthening expertise, 

Department of the Treasury - Budget in Brief 62
adopting innovative approaches, and 

streamlining procedures;

 Deter and promptly resolve noncompliance 

by protecting revenue from refund fraud 

and ensuring appropriate revenue 

collection;

 Build and maintain public trust by 

anticipating and addressing the tax-exempt 

sector’s need for a clear understanding of 

its tax law responsibilities;

 Identify trends, detect high-risk areas of 

noncompliance, and prioritize enforcement 

approaches by applying research and 

advanced analytics;

 Address noncompliance by improving 

data, information, and knowledge sharing 

with tax community and government 

partners; and

 Improve compliance and reduce the risk of 

fraud through strong partnerships with the 

tax professional community.

To achieve the service and enforcement goals, 

the IRS builds on a strategic foundation 

consisting of the following objectives:

 Be the best place to work in government 

by building a highly talented, diverse 

workforce and cultivating an inclusive and 

collaborative environment;

 Ensure a secure environment that protects 

the safety of our people and security of our 

facilities;

 Implement and maintain a robust 

enterprise risk management program that 

identifies emerging risks and mitigates 

them before they impact performance;

 Realize operational efficiencies and 

effectively manage costs by improving 

enterprise-wide resource allocation and 

streamlining processes; 

 Invest in innovative, secure technology 

needed to protect taxpayer data and 

support taxpayer, partner, and business 

needs; and 

 Implement enterprise-wide analytics and 

research capabilities to make timely, 

informed decisions.

Enforcement Program: The FY 2015

request provides funding to implement enacted 

legislation; protect revenue by identifying 

fraud and preventing issuance of questionable 

refunds, including tax-related identity theft; 

address offshore noncompliance; enforce 

return preparer compliance; expand criminal 

investigation capabilities; address compliance 

issues in the tax-exempt sector, including 

employee retirement plans, exempt 

organizations, and direct pay bonds; and 

provide appropriate and balanced coverage by 

improving examination audit and collection 

coverage rates. 

Increased resources for the IRS compliance 

programs yield direct, measurable results 

through high return on investment (ROI) 

activities. This request includes a 

$480 million program integrity cap adjustment 

that will reduce the deficit through above-base 

funding for high-ROI tax enforcement and 

compliance programs, of which $5 million will 

be transferred to the Alcohol and Tobacco Tax 

and Trade Bureau (TTB). The $475 million 

requested for the IRS FY 2015 enforcement 

initiatives funded through this program 

integrity cap adjustment will generate nearly 

$2.1 billion in additional annual enforcement 

revenue once the new hires reach full potential 

in FY 2017. At full performance, these 

resources requested for enforcement initiatives 

are expected to generate an ROI of nearly 

$6-to-$1, not including indirect deterrence 

effects estimated to be at least three times the 

direct revenue impact. 

Department of the Treasury - Budget in Brief 63
In addition to the new enforcement initiatives 

for FY 2015, the President’s Budget also 

proposes new tax enforcement and compliance 

initiatives for the IRS and TTB funded via cap 

adjustments through 2019 and sustained with 

additional adjustments through 2024. In total, 

the proposal entails 10 years of cap 

adjustments costing $17 billion while saving 

$52 billion, for a net savings of $35 billion. 

Taxpayer Service Program: The FY 2015

President’s Budget request will allow the IRS 

to further improve customer service to meet 

taxpayer demand and continue delivering 

services to taxpayers using a variety of inperson, telephone, and web-based methods to 

help taxpayers understand their tax 

obligations, correctly file their returns, and pay 

taxes due in a timely manner.

Providing quality taxpayer service is 

especially important to help taxpayers avoid 

making unintentional errors. Assisting 

taxpayers with their questions before they file 

their returns prevents inadvertent 

noncompliance and reduces burdensome 

post-filing notices and other correspondence 

from the IRS. Taxpayer demand for 

self-service and electronic service options at 

the IRS has dramatically increased in recent 

years. The IRS is committed to increasing the 

service options available through the IRS 

website and mobile application, allowing more 

taxpayers to reach the IRS through the 

internet. 

In 2013, there were more than 450 million

visits to www.IRS.gov, and more than 

200 million taxpayers checked their refund 

status by accessing the Where’s My Refund?

web application in English or in Spanish on 

the IRS website. Taxpayers also used the 

automated features found at 1-800-829-1040.

Business Systems Modernization: IRS 

modernization efforts focus on building and 

deploying advanced information technology 

systems, processes, and tools to improve 

efficiency and enhance productivity. Since 

2012, the IRS has processed individual 

taxpayer returns on a daily processing cycle 

that has enhanced IRS tax administration and 

improved customer service by allowing faster 

refunds for more taxpayers, more timely 

account updates, and faster issuance of 

taxpayer notices. The FY 2015 Business 

Systems Modernization (BSM) request will 

allow the IRS to expand the capabilities of the 

CADE 2 relational database and address 

financial material weaknesses, and to complete 

the design, development, and testing of the 

Form 1040X, Amended U.S. Individual Income 

Tax Return, so IRS processing systems can 

accept the form electronically. Beginning in 

2014 and continuing in 2015, the Return 

Review Program (RRP) and the development 

of Online Services projects will be part of the 

BSM program. Using leading-edge 

technologies that promote speed and enhanced 

data analytics, RRP will advance IRS 

effectiveness in detecting, addressing, and 

preventing tax refund fraud and protecting 

government revenue. The Office of Online 

Services (OLS) will lead the IRS’s transition 

to the future digital customer service. OLS 

will build on existing service delivery 

capabilities to simplify the taxpayer’s online 

experience, provide secure digital 

communications, and add more interactive 

capabilities to existing web self-service 

products. 

Opportunity, Growth, and Security 

Initiative: The FY 2015 Budget requests 

resources from the new Opportunity, Growth, 

and Security Initiative to support additional 

IRS customer service improvements, including 

increasing toll-free telephone level of service 

by 11 percentage points to over 80 percent, 

driving responsiveness to taxpayers through 

correspondence inventory reduction, and 

bolstering resources to help tackle more highly 

burdensome identity theft and refund fraud 

cases.

Department of the Treasury - Budget in Brief 64
IRS FY 2015 Budget Highlights 

Dollars in Thousands

Appropriation

$000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2013 Operating Level 1

$2,135,553 29,700 $4,949,178 44,325 $3,800,943 11,885 $312,938 471 $11,198,612 86,381

FY 2014 Enacted2

$2,156,554 28,996 $5,022,178 42,805 $3,798,942 11,860 $312,938 528 $11,290,612 84,189

FY 2015 Changes to Base:

Non-Recur FY 2014 Additional Appropriation ($34,000) ($58,000) ($92,000)

Maintaining Current Levels (MCLs): $46,483 $105,719 $69,382 $1,593 $223,177

Pay-Raise 24,564 57,260 19,399 859 102,082

FERS Contribution Increase 18,724 41,857 14,014 734 75,329

Non-Pay 3,195 6,602 35,969 45,766

Other Adjustment: ($29,221) 329 $29,221 244 573

Base Adjustments (29,221) 329 29,221 244 573

Efficiencies/Savings: ($18,786) (70) ($18,233) ($58,181) ($95,200) (70)

Increase e-File Savings (2,761) (55) (39) (2,800) (55)

Adjustment for FERS Increase (18,233) (58,142) (76,375)

HCTC Program Termination (16,025) (15) (16,025) (15)

Reinvestment: $16,025 $16,025

Expand Telecom Infrastructure to Handle Increased Demand 16,025 16,025

Subtotal FY 2015 Changes to the Base ($6,303) (70) $58,265 329 ($1,553) 244 $1,593 $52,002 503

FY 2015 Current Services (Base) $2,150,251 28,926 $5,080,443 43,134 $3,797,389 12,104 $314,531 528 $11,342,614 84,692

Program Changes:

Program Increases Before Cap Adjustment: $167,382 2,555 $53,545 540 $417,780 970 $15,679 41 654,386 4,106

Improve Taxpayer Service and Return Processing 153,482 2,355 57,776 36 211,258 2,391

Prevent Identity Theft and Refund Fraud 13,900 200 16,971 191 34,005 66 64,876 457

Continue Migration from Aging Tax Administration SystemsEnhance Online Services 829 15,679 41 16,508 41

Address Impact of Affordable Care Act (ACA) Statutory 

Requirements 36,574 349 19,525 50 56,099 399

Implement Information Technology (IT) Changes to Deliver Tax 

Credits and Other Requirements 305,645 818 305,645 818

Total Request Before Cap Adjustment $2,317,633 31,481 $5,133,988 43,674 $4,215,169 13,074 $330,210 569 $11,997,000 88,798

Cap Adjustment Program Increases:

Enforcement Initiatives: $232,838 2,083 $170,841 266 $403,679 2,349

Address International and Offshore Compliance Issues 49,037 332 7,773 56,810 332

Expand Coverage of High Wealth Individuals and Enterprises 17,684 141 3,273 20,957 141

Expand Audit Coverage 53,581 541 44,198 45 97,779 586

Enhance Collection Coverage 41,692 540 25,070 37 66,762 577

Improve Coverage of Partnerships and Flow-Through Entities 28,690 240 7,849 4 36,539 244

Expand Compliance Coverage in the Tax-Exempt Sector 13,364 119 2,731 16,095 119

Pursue Fraud Referrals, Employment Tax, and Abusive Tax 

Schemes 9,275 52 8,537 17,812 52

Build Out Tax Return Preparer Compliance and Professional 

Responsibility Activities 14,765 106 2,772 17,537 106

Implement Information Technology (IT) Changes to Deliver the 

Foreign Account Tax Compliance Act (FATCA) 32,223 140 32,223 140

Leverage Digital Evidence for Criminal Investigation (CI) 698 5 3,674 1 4,372 6

Leverage Data to Improve Case Selection 4,052 7 32,741 39 36,793 46

Infrastructure Initiatives: $70,848 40 $70,848 40

Implement Information Technology (IT) Services 10,000 10,000

Implement Campus Consolidation and Revitalization Strategy 10,000 10,000

Implement e-Government and Other Administration Priorities 31,011 19 31,011 19

Maintain Integrity of Revenue Financial Systems 12,136 8 12,136 8

Taxpayer Services Enforcement Total Operations 

Support

Business Systems 

Modernization

Expand Virtual Service Delivery (VSD) 7,701 13 7,701 13

Alcohol and Tobacco Tax and Trade Bureau (TTB) Program 

Integrity Transfer: $5,000 $5,000

Transfer to TTB for High-Return on Investment (ROI) Tax 

Enforcement Activities 5,000 5,000

Subtotal FY 2015 Cap Adjustment $237,838 2,083 $241,689 306 $479,527 2,389

Total FY 2015 Budget Request $2,317,633 31,481 $5,371,826 45,757 $4,456,858 13,380 $330,210 569 $12,476,527 91,187

2FY 2014 Enacted includes $92M in funding ($34 million in Taxpayer Services and $58 million in Operations Support).

1FY 2013 Operating Level represents the operating level after applying the across-the-board rescission and reductions required by sequestration and an interappropriation transfer of $73M 

transferred from the Enforcement appropriation to the Taxpayer Services ($13M) and Operations Support ($60M) appropriations.

Department of the Treasury - Budget in Brief 65
FY 2015 Budget Adjustments 

Non-Recurring Costs 

Non-Recur FY 2014 Additional 

Appropriation -$92,000,000 / +0 FTE 

The $92 million additional appropriation 

increase in the Consolidated Appropriations 

Act, 2014, to improve the delivery of services 

to taxpayers, improve the identification and 

prevention of refund fraud and identity theft, 

and address international and offshore 

compliance issues, is non-recurred. 

Maintaining Current Level (MCLs) 

Pay-Raise +$102,082,000 / +0 FTE 

Funds are requested for the proposed January 

2015 pay-raise and annualization of the 2014 

pay raise. 

FERS Contribution Increase 

+$75,329,000 / +0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$45,766,000 / +0 FTE 

Funds are requested for inflation adjustments 

for non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Other Adjustments 

Base Adjustments +$0 / +573 FTE 

This base adjustment transfers $29.2 million 

and 244 FTE from the Enforcement 

appropriation to the Operations Support 

appropriation to reclassify Government 

Liaison & Disclosure (GLD) to better align 

with its role as a security function. The GLD 

program is part of Privacy, Governmental 

Liaison, and Disclosure (PGLD). The PGLD 

function is to protect the sensitive information 

and privacy of taxpayers and employees and to 

ensure only authorized disclosures and data 

sharing, and therefore, more appropriately 

belongs in the Operations Support 

appropriation. 

The exception only hiring freeze implemented 

by the IRS over the last several years has 

generated $57.9 million in uncommitted 

enforcement resources. Starting in FY 2015, 

the IRS will use these base resources to 

provide the enforcement staff needed to 

implement changes required by enactment of 

the Foreign Account Tax Compliance Act 

(FATCA); take advantage of the reporting 

provisions for merchant payment card, third 

party reimbursements, and basis reporting on 

security sales; and partially fund the expansion 

of the Criminal Investigation Identity Theft 

Clearinghouse, which processes all identity 

theft leads from field special agents and other 

external sources. 

Efficiency Savings 

Increase e-File Savings 

-$2,800,000 / -55 FTE 

These savings are a result of reduced paper 

returns. The IRS projects taxpayers will file 

1,277,800 fewer paper returns (807,900 

individual and 469,900 business returns) and 

instead choose to e-file. As a result, the IRS 

would need 55 fewer FTE in submission 

processing, generating a savings of 

$2.8 million. 

Adjustment for FERS Increase 

-$76,375,000 / +0 FTE

By continuing to closely manage personnel 

costs in FY 2014, the IRS will achieve the 

reductions needed in FY 2015 to absorb the 

cost of the FERS contribution increase.

HCTC Program Termination 

-$16,025,000 / -15 FTE

The Health Coverage Tax Credit (HCTC) 

program was enacted by the Trade Adjustment 

Assistance (TAA) Act of 2002 (Public 

Law 107-210), and became effective August 

2003. This program assisted dislocated 

workers with their health insurance premiums 

and the IRS was provided resources to 

administer the advance payment feature. This 

Department of the Treasury - Budget in Brief 66
program was terminated January 1, 2014, as 

provided by the Trade Adjustment Assistance 

Extension Act of 2011 (TAA Reauthorization) 

(Public Law 112-40). Termination of this 

program will result in a savings of $16.0 

million and 15 FTE. 

Reinvestments 

Expand Telecom Infrastructure to Handle 

Increased Demand +$16,025,000 / +0 FTE 

This reinvestment expands the Customer 

Service Representative (CSR) toll-free call 

center telecommunication infrastructure to 

allow the IRS to answer the additional 

telephone calls related to implementation of 

the Affordable Care Act (ACA) (Public Law 

111-148). The requested funding covers 

expanded telecommunications infrastructure 

and equipment, hardware costs for high-speed 

internet connections, and encryption 

technology. 

Program Increases 

Improve Taxpayer Service and Return 

Processing +$211,258,000 / +2,391 FTE 

This initiative will provide resources for the 

IRS to help meet the expected demand 

increases for taxpayer services in 

FY 2015. The additional resources requested 

in FY 2015 will allow the IRS to increase the 

Customer Service Representative (CSR) Level 

of Service (LOS) from the actual 

FY 2013 level of 60.5 percent to 71 percent. 

Resources are needed to address the projected 

growth in demand for traditional taxpayer 

services such as answering tax law questions 

and resolving accounts as well as providing 

taxpayer telephone assistance, correspondence 

services, and outreach to individuals, 

businesses, and third parties affected by 

implementation of the Affordable Care Act 

(ACA) (Public Law 111-148). Without the 

additional resources the IRS expects the CSR 

LOS would be 53 percent. It also provides 

advanced technology to improve telephone 

customer service and allows the IRS to begin 

the initial phase of enhancing the Account 

Management System (AMS) to electronically 

receive amended returns (Form 1040X, 

Amended U.S. Individual Tax Return) from the 

Modernized e-File (MeF). 

Address International and Offshore 

Compliance Issues +$56,810,000 / +332 FTE 

This initiative will increase coverage of 

entities with undisclosed offshore accounts to 

comply with required U.S. tax reporting. It 

will promote voluntary compliance with U.S. 

laws through strategic enforcement actions 

directed at identifying U.S. taxpayers involved 

in abusive offshore tax schemes through 

banks, other financial institutions, and third 

party structures; allow the IRS to expand 

information gathering and data analysis to 

identify promoters or facilitators of abusive 

offshore schemes; and expand offshore 

criminal investigations in pursuit of 

international tax and financial crimes as well 

as grow the IRS Attaché presence. This 

request will produce additional annual 

enforcement revenue of $292.8 million, once 

the new hires reach full potential in FY 2017, 

an ROI of $4.8 to $1. 

Expand Coverage of High Wealth 

Individuals and Enterprises 

+$20,957,000 / +141 FTE 

This initiative will continue the IRS’s efforts 

to focus on high wealth taxpayers by 

increasing risk identification, case building, 

and examination capabilities. High wealth 

individuals frequently operate complex 

enterprises consisting of multiple, interrelated 

businesses and flow-through entities that often 

have international components. The IRS takes 

a unified look at the entire web of business 

entities controlled by high wealth individuals 

to better assess the risks of noncompliance. 

This initiative will produce additional annual 

enforcement revenue of $243.9 million, once 

the new hires reach full potential in FY 2017, 

an ROI of $11.3 to $1. 

Department of the Treasury - Budget in Brief 67
Prevent Identity Theft and Refund Fraud 

+$64,876,000 / +457 FTE

This initiative supports the IRS’s continued 

efforts to handle the increased workload 

associated with identity theft and refund fraud. 

This request will help the IRS to answer 

telephone calls and adjust accounts for 

taxpayers who have been victims of identity 

theft; reduce the number of identity theft 

returns posted; protect additional revenue; 

address some of the identity theft case 

backlog; continue the expansion of the 

specialized Criminal Investigation Identity 

Theft Clearinghouse that processes identity 

theft leads; and invest in information 

technology that will protect taxpayer 

information, help verify potentially fraudulent 

identity theft tax returns, and reduce erroneous 

payments. 

While this initiative is not included in the 

IRS’s traditional ROI calculations, investment 

in these activities is projected to protect nearly 

$1.5 billion in revenue, once the new hires 

reach full potential in FY 2017, a protected 

revenue ROI of more than $22 to $1. 

Address Impact of ACA Statutory 

Requirements +$56,099,000 / +399 FTE 

As the tax law changes, the IRS must 

implement programs to ensure that taxpayers 

understand the new laws, and that the IRS can 

address noncompliance. The new ACA tax 

provisions include new requirements for taxexempt hospitals, a new fee on manufacturers 

and importers of branded prescription drugs, 

an excise tax on indoor tanning, and new 

compliance responsibilities from the nonexchange related tax law changes. This 

initiative also expands the compliance 

coverage of tax-exempt hospital organizations 

by refining the community benefit reviews and 

by leveraging this data to conduct 

examinations; expands coverage of new 

provisions related to the premium tax credit, 

individual responsibility requirement, and 

large employer insurance; and addresses new 

audit requirements related to the shared 

employer responsibility payment. 

This initiative will annually produce additional 

enforcement revenue of $129.2 million, once 

the new hires reach full potential in FY 2017, 

an ROI of $2.3 to $1, and protect revenue of 

$71.5 million, a protected ROI of $14 to $1. 

Expand Audit Coverage 

+$97,779,000 / +586 FTE

This initiative will allow IRS to improve 

individual examination coverage and 

effectively address critical noncompliance 

issues over a broad range of compliance 

priorities. Apart from detecting 

noncompliance directly, examination coverage 

promotes voluntary compliance both by 

increasing the likelihood that intentional 

noncompliance will be detected and reassuring 

compliant taxpayers of the fairness of the tax 

administration system. This initiative also will 

expand correspondence examinations on 

individual taxpayers; increase the coverage of 

the document matching program to reduce the 

number of taxpayers who misreport their 

income; address increasing Appeals workload; 

and provide investments in technology to 

increase data capture and improve examination 

efficiency. 

This initiative will annually produce additional 

enforcement revenue of $674.3 million, once 

the new hires reach full potential in FY 2017, 

an ROI of $7.1 to $1, and protect revenue of 

$106.6 million, a protected ROI of nearly 

$21 to $1. 

Enhance Collection Coverage 

+$66,762,000 / +577 FTE 

This initiative will ensure that the IRS has 

sufficient resources to work the collection 

inventory to bring taxpayers who fail to pay 

their tax debt into compliance. This initiative 

provides resources for Campus Collection to 

Department of the Treasury - Budget in Brief 68
take a more proactive role in reaching out to 

taxpayers earlier in the collection process and 

includes staffing to address the increased 

number and value of employment tax cases in 

Field Collection; growing collection case 

inventories and incoming call volumes in the 

Automated Collection System (ACS); balance 

due correspondence and phone work and 

installment agreement calls in the Compliance 

Services Collection Operation (CSCO) 

Program; and increased workload in the Offers 

in Compromise (OIC) Program, which helps 

taxpayers experiencing economic hardship 

resolve their tax liabilities. 

This initiative will produce additional annual 

enforcement revenue of $616.8 million, once 

new hires reach full potential in FY 2017, an 

ROI of $8.5 to $1. 

Improve Coverage of Partnerships and FlowThrough Entities +$36,539,000 / +244 FTE 

Partnership businesses continue to be the 

fastest growing segment of all tax returns filed. 

This initiative will increase identification and 

audit of partnerships and flow-through entities; 

increase the number of auditors with 

specialized knowledge in partnership law; and 

strengthen enforcement activities relating to 

flow-through entities and improve compliance 

by enhancing Tax Equity and Fiscal 

Responsibility (TEFRA) procedures. This 

initiative will produce additional annual 

enforcement revenue of $267.8 million, once 

the new hires reach full potential in FY 2017, 

an ROI of $6.8 to $1. 

Expand Compliance Coverage in the TaxExempt Sector +$16,095,000 / +119 FTE 

This initiative will help the IRS to continue 

focused oversight of the tax-exempt sector and 

improve service to make voluntary compliance 

easier. It will enhance enforcement coverage 

of employee retirement plans, specifically 

those sponsored by small business, exempt 

organizations, and governments, which make 

up almost half of all retirement plans in the 

United States and control more than 

$1.1 trillion in assets; collect unrelated 

business income and employment taxes from 

exempt organizations, which GAO has 

estimated to be almost $1 billion in unpaid 

Federal taxes; improve service in the 

determination process to address the 

compliance of new exempt organizations with 

applicable tax laws; detect potentially 

fraudulent claims for direct Federal credit 

payments from direct pay bonds, the payments 

of which are estimated to reach more than 

$120 billion over the life of the bonds; and 

provide voluntary correction opportunities for 

tax issues related to employment taxes and 

retirement plan failures.

Pursue Fraud Referrals, Employment Tax, 

and Abusive Tax Schemes 

+$17,812,000 / +52 FTE 

This initiative will enhance overall 

enforcement efforts in the core tax 

enforcement areas of corporate fraud, 

employment tax, and abusive tax schemes by 

increasing the number of convictions and 

assessments. In addition, this initiative 

includes resources that will allow the IRS to 

apply social network analysis (SNA) to the 

investigation of fraud and abusive schemes. 

By establishing and implementing a financial 

and criminal intelligence database, SNA 

software will proactively identify potentially 

noncompliant taxpayers in multiple program 

areas. These resources will improve the 

sharing of information among IRS operating 

divisions, expand the IRS’s capability to 

identify significant tax cases, increase cost 

savings, and standardize the fraud referral 

process. 

Department of the Treasury - Budget in Brief 69
Build Out Tax Return Preparer Compliance 

and Professional Responsibility Activities 

+$17,537,000 / +106 FTE 

This initiative will improve taxpayer

compliance and the accuracy of returns filed 

by tax professionals and foster a stakeholderdriven culture that encourages voluntary 

compliance. The IRS will ensure tax preparers 

meet both uniform and high ethical standards 

of conduct by enforcing preparer compliance 

with IRS rules, increasing preparer 

examinations, and monitoring and pursuing 

preparers engaged in fraudulent activities, 

including noncompliant Earned Income Tax 

Credit (EITC) return preparers. This initiative 

also provides resources for the IRS’s Office of 

Professional Responsibility (OPR) to meet the 

demand of the expanded population of tax 

preparers subject to Circular 230, Regulations 

Governing Practice Before the Internal 

Revenue Service. 

Implement Information Technology (IT) 

Changes to Deliver the Foreign Account Tax 

Compliance Act (FATCA) 

+$32,223,000 / +140 FTE 

This initiative will allow IRS to address 

foreign withholding compliance and expand 

coverage of international tax return filings by 

providing the resources to implement the 

information technology (IT) changes required 

by enactment of FATCA included in the 

Hiring Incentives to Restore Employment 

(HIRE) Act of 2010 (Public Law 111-147). 

FATCA improves offshore compliance by 

imposing new information reporting 

requirements on foreign financial institutions 

(FFIs) with respect to U.S. accounts and new 

withholding, documentation, and reporting 

requirements for payments made to certain 

foreign entities. These new reporting 

requirements will require new technology 

systems or modifications to existing systems.

Leverage Digital Evidence for Criminal 

Investigation (CI) +$4,372,000 / +6 FTE 

This initiative will automate current CI 

processes by implementing a virtual digital 

evidence processing environment. This will 

allow the IRS to expedite and enhance the 

analysis of electronic data by special agents, 

computer investigative specialists, and other 

investigative staff assigned to an investigation. 

Leverage Data to Improve Case Selection 

+$36,793,000 / +46 FTE 

This initiative will provide the resources to 

leverage technology to improve data 

accessibility and usability for better case 

selection, issue identification, and treatment 

assignment. Taxpayer behavior, including 

noncompliant behavior, is constantly 

changing. The IRS must adapt quickly to 

changing taxpayer behavior to prevent fraud 

and tax code misuse. This initiative will 

significantly increase the digital availability of 

tax return information. The IRS will then 

leverage this data through an analytical 

computing and data testing environment to 

identify taxpayer behavioral changes and test 

compliance responses promptly; and to 

optimize compliance case identification and 

treatment assignment to increase effectiveness 

while reducing risks costs. 

Improved use of analytics will increase 

revenue collection and, while this is not 

included in the IRS’s traditional ROI 

calculations, this initiative is projected to 

increase revenue by $75.4 million in FY 2017, 

achieving an ROI of $2 to $1.

Implement Information Technology (IT) 

Changes to Deliver Tax Credits and Other 

Requirements +$305,645,000 / +818 FTE 

This initiative will allow the IRS to continue to 

implement the new tax law provisions 

contained in the Affordable Care Act (ACA). 

While the Department of Health and Human 

Services is responsible for the health care 

policy and insurance provisions in the 

Department of the Treasury - Budget in Brief 70
legislation, the IRS administers more than 45 

specific tax provisions and numerous crossagency sections related to tax administration. 

This investment supports the administration of 

one of the largest refundable tax credits the 

IRS has administered. The investment touches 

all submission, fraud, and compliance tax 

administration processes to receive, validate, 

and handle individual and business tax returns. 

The investment also will provide enhanced 

technology infrastructure and applications 

support and allow necessary, major 

modifications to existing IRS tax 

administration systems. 

Implement Information Technology (IT) 

Services +$10,000,000 / +0 FTE 

This initiative will allow the IRS to continue to 

implement industry best practices to shape the 

future of IT development and ongoing 

operational support to provide a more robust 

foundation for expanding IT capabilities in the

future. It will provide resources for the IRS to 

implement two industry best practices for 

managing change and monitoring its complex 

computer environment and to convert its 

operating system to a less complex standard 

that decreases the need for hardware. These 

investments will result in a more stable 

computing environment and reduce downtime 

to taxpayers. 

Implement Campus Consolidation and 

Revitalization Strategy 

+$10,000,000 / +0 FTE 

This initiative provides resources to fund lease 

consolidation in Atlanta, Georgia, and 

complete a preliminary design of a new, 

modernized submission processing facility at 

the IRS campus in Covington, Kentucky. In 

addition, this initiative provides resources to 

fund the Graphic Data Interface (GDI) system 

to enhance the IRS facilities management 

decision support. 

Implement eGovernment and Other 

Administration Priorities 

+$31,011,000 / +19 FTE 

This initiative will allow the IRS to maximize 

the effectiveness and efficiency of the 

procurement consolidation of the IRS Office 

of Procurement, Treasury Departmental 

Offices, and the Bureau of Engraving and 

Printing by investing in an external interface 

for the IRS Integrated Procurement System 

(IPS); protect IRS employees, facilities, 

operations, and information by replacing and 

standardizing the IRS aging inventory of 

Physical Access Control Systems (PACS) with 

the modern access control and surveillance 

system, Enterprise Physical Access Control 

System (ePACs); and mitigate the 

vulnerabilities identified in the FY 2010 

Facility Risk Assessment by implementing the 

security recommendations.

Maintain Integrity of Revenue Financial 

Systems +$12,136,000 / +8 FTE 

This initiative will support and improve the 

IRS’s revenue financial accounting systems to 

ensure timely and accurate reporting of tax 

data. The revenue financial and accounting 

systems include the general ledger, which was 

required to reconcile and report to the 

Department of the Treasury on $2.9 trillion in 

revenue before refunds and $364 billion in 

individual and business tax refunds in 

FY 2013; produce the annual audited financial 

statements; and perform other operational and 

financial reporting on unpaid tax assessments 

currently identified by GAO as a material 

weakness. Resources from this initiative also 

will allow the IRS to make the necessary 

system and programming changes to comply 

with OMB and Treasury mandates, and to stay 

current with internal changes made to IRS’s 

tax processing systems for tax administration 

that also affect financial reporting. 

Department of the Treasury - Budget in Brief 71
Expand Virtual Service Delivery (VSD) 

+$7,701,000 / +13 FTE 

The resources requested in this initiative will 

develop a unified communication platform 

through the internet to facilitate contact 

between IRS employees and taxpayers. VSD 

technology provides an alternative to face-toface for taxpayers who are: undergoing an 

examination audit; interacting with Appeals to 

resolve their tax issues without litigation; 

needing assistance from Taxpayer Advocate to 

solve their tax problems; victims of identity 

theft; or living outside of the United States.

Continue Migration from Aging Tax 

Administration Systems-Enhance Online 

Services +$16,508,000 / +41 FTE 

This initiative will provide additional 

resources for the new Business Systems 

Modernization (BSM) project, Enhance Online 

Services (OLS), and will allow the IRS to 

advance its transition to the future in digital 

government. The OLS project will build on 

existing service delivery capabilities and 

simplify the taxpayer’s online experience, 

provide secure digital communications, and 

add more interactive capabilities to existing 

web self-service and mobile products. The 

OLS project further enhances IRS’s datacentric vision, with robust user data and crosschannel analytics, which are invaluable 

sources for insight and continuous 

improvement to the taxpayer experience.

Transfer to TTB for High-Return on 

Investment (ROI) Tax Enforcement Activities 

+$5,000,000 / +0 FTE 

The IRS will transfer $5 million to TTB for 

those high-ROI tax enforcement activities that 

produce additional revenue through program 

activities designated to narrow the Federal 

excise tax gap on alcohol and tobacco 

commodities. More detailed information can 

be found in the TTB FY 2015 Budget in Brief. 

Return on Investment for FY 2015 Enforcement Initiatives to Implement Enacted Legislation

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI

Revenue-Producing Enforcement Initiative Before the Cap Adjustment $51.7 $50.2 1.0 $55.9 $129.2 2.3

Address Impact of Affordable Care Act (ACA) Statutory Requirements 51.7 50.2 1.0 55.9 129.2 2.3

Return on Investment for FY 2015 Cap Adjustment Enforcement Initiatives 

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI

Cap Adjustment Enforcement Initiatives $362.4 $635.3 1.8 $377.0 $2,095.6 5.6

Immediate and Directly Measurable Revenue-Producing Initiatives $274.4 $635.3 2.3 $289.5 $2,095.6 7.2

Address International and Offshore Compliance Issues 56.8 87.5 1.5 60.9 292.8 4.8

Expand Coverage of High Wealth Individuals and Enterprises 21.0 78.5 3.7 21.6 243.9 11.3

Expand Audit Coverage 93.3 210.3 2.3 94.8 674.3 7.1

Enhance Collection Coverage 66.8 174.6 2.6 72.6 616.8 8.5

Improve Coverage of Controlled Partnerships and Flow-Through Entities 36.5 84.4 2.3 39.6 267.8 6.8

Strategic Revenue-Producing Initiative (which does not have immediately 

measurable ROI, but clear long-term revenue effects)

$88.0 $0.0 0.0 $87.5 $0.0 0.0

Expand Compliance Coverage in the Tax-Exempt Sector 16.0 0.0 0.0 16.8 0.0 0.0

Pursue Fraud Referrals, Employment Tax, and Abusive Tax Schemes 17.8 0.0 0.0 16.0 0.0 0.0

Build Out Tax Return Preparer Compliance and Professional Responsibility 

Activities 17.6 0.0 0.0 17.9 0.0 0.0

Implement IT Changes to Deliver the Foreign Account Tax compliance Act 

(FATCA) 32.2 0.0 0.0 32.2 0.0 0.0

Leverage Digital Evidence for Criminal Investigation (CI) 4.4 0.0 0.0 4.6 0.0 0.0

First Year (FY 2015) Full Performance (FY 2017)

First Year (FY 2015) Full Performance (FY 2017)

Department of the Treasury - Budget in Brief 72
Explanation of Budget Activities

Taxpayer Services 

The FY 2015 President’s Budget request is 

$2,317,633,000 in direct appropriations, an 

estimated $40,212,000 from reimbursable 

programs, and an estimated $190,999,000 

from user fees, for a total operating level of 

$2,548,844,000. This appropriation funds the 

following budget activities. 

Pre-filing Taxpayer Assistance & Education 

($639,249,000 from direct appropriations, 

and an estimated $6,400,000 from user fees) 

This budget activity funds services to assist 

with tax return preparation, including tax law 

interpretation, publication, production, and 

advocate services. In addition, funding for 

these programs continues to emphasize 

taxpayer education, outreach, increased 

volunteer support time and locations, and 

enhancing pre-filing taxpayer support through 

electronic media. 

Filing & Account Services ($1,678,384,000 

from direct appropriations, an estimated 

$40,212,000 from reimbursable resources, 

and an estimated $184,599,000 from user 

fees) 

This budget activity funds programs that 

provide filing and account services to 

taxpayers, process paper and electronically 

submitted tax returns, issue refunds, and 

maintain taxpayer accounts. 

Enforcement 

The FY 2015 President’s Budget request is 

$5,371,826,000 in direct appropriations, an 

estimated $32,446,000 from reimbursable 

programs, and an estimated $20,409,000 from 

user fees, for a total operating level of 

$5,424,681,000. To reduce future deficits, a 

portion of this appropriation, $237,838,000, is 

requested as part of the $479,527,000 total 

program integrity cap adjustment for the IRS, 

which includes an above-base investment in 

tax enforcement and compliance programs, 

including a $5,000,000 transfer to TTB for 

high return on investment enforcement 

activities. In conjunction with specified funds 

provided in the IRS Operations Support 

account, this increment will support tax 

compliance initiatives expected to generate 

high returns on investment in the form of 

increased tax revenues. This appropriation 

funds the following budget activities. 

Investigations ($662,606,000 from direct 

appropriations, an estimated $30,903,000 

from reimbursable resources, and an 

estimated $4,709,000 from user fees) 

This budget activity funds the Criminal 

Investigation (CI) programs that explore 

potential criminal and civil violations of tax 

laws; enforce criminal statutes relating to 

violations of tax laws and other financial 

crimes; and recommend prosecution as 

warranted. These programs identify and 

document the movement of both legal and 

illegal sources of income to identify and 

document cases of suspected intent to defraud. 

This budget activity also provides resources 

for international investigations involving U.S. 

citizens residing abroad, non-resident aliens, 

and expatriates, and includes investigation and 

prosecution of tax and money laundering 

violations associated with narcotics 

organizations. 

Exam & Collections ($4,538,881,000 from 

direct appropriations, an estimated $864,000 

from reimbursable resources) 

This budget activity funds programs that 

enforce the tax laws and increase compliance 

through examination and collection programs 

that ensure proper payment and tax reporting. 

It also includes programs such as specialty tax 

examinations (employment tax, excise tax, and 

estate and gift tax exams), international 

collections, and international examinations. 

The budget activity also provides for campus 

support of the Questionable Refund program 

and appeals and litigation activities associated 

with exam and collection. 

Department of the Treasury - Budget in Brief 73
Regulatory ($170,339,000 from direct 

appropriations, an estimated $679,000 from 

reimbursable resources, and an estimated 

$15,700,000 from user fees) 

This budget activity funds the development 

and printing of published IRS guidance 

materials; interpretation of tax laws; internal 

advice to the IRS on general non-tax legal 

issues such as procurement, personnel, and 

labor relations; enforcement of regulatory 

rules, laws, and approved business practices; 

and support of taxpayers in the areas of prefiling agreements, determination letters, and 

advance pricing agreements. The Return 

Preparer Program is funded within this activity 

in addition to the Office of Professional 

Responsibility, which is responsible for 

identifying, communicating, and enforcing the 

Treasury Circular 230 standards of 

competence, integrity, and conduct of 

professionals representing taxpayers before the 

IRS. 

Operations Support 

The FY 2015 President’s Budget request is 

$4,456,858,000 in direct appropriations, an 

estimated $28,761,000 from reimbursable 

programs, and an estimated $184,276,000 

from user fees, for a total operating level of 

$4,669,895,000. A portion of this 

appropriation, $241,689,000, is requested as 

part of the $479,527,000 program integrity cap 

adjustment for the IRS tax enforcement and 

compliance programs, which provides an 

above-base investment in these programs to 

reduce future deficits. In conjunction with 

specified funds provided to the IRS 

Enforcement account, this increment will 

support new tax compliance initiatives that are 

expected to generate high returns on 

investment in the form of increased tax 

revenues. This appropriation funds the 

following budget activities. 

Infrastructure ($913,677,000 from direct 

appropriations, an estimated $760,000 from 

reimbursable resources, and an estimated 

$5,414,000 from user fees) 

This budget activity funds administrative 

services related to space and housing, rent and 

space alterations, building services, 

maintenance, guard services, and non-IT 

equipment. 

Shared Services & Support ($1,269,176,000 

from direct appropriations, an estimated 

$18,504,000 from reimbursable resources, 

and an estimated $33,826,000 from user fees) 

This budget activity funds policy management, 

IRS-wide support for research, strategic 

planning, communications and liaison, 

protection of sensitive information and the 

privacy of taxpayers and employees, finance, 

human resources, and equity, diversity, and 

inclusion programs. It also funds printing and 

postage, business systems planning, security, 

corporate training, legal services, procurement, 

and specific employee benefits programs. 

Information Services ($2,274,005,000 from 

direct appropriations, an estimated 

$9,497,000 from reimbursable resources, and 

an estimated $145,036,000 from user fees) 

This budget activity funds staffing, equipment, 

and related costs to manage, maintain, and 

operate the information systems critical to the 

support of tax administration programs. This 

includes the design and operation of security 

controls and disaster recovery planning. This 

budget activity funds the development and 

maintenance of the millions of lines of 

programming code that support all aspects and 

phases of tax processing and the operation and 

administration of the mainframes, servers, 

personal computers, networks, and a variety of 

management information systems. 

Department of the Treasury - Budget in Brief 74
Business Systems Modernization 

The FY 2015 President’s Budget request is 

$330,210,000 in direct appropriations. This 

appropriation funds the following budget 

activity. 

Business Systems Modernization 

($330,210,000 from direct appropriations) 

This budget activity funds the planning and 

capital asset acquisition of information 

technology (IT) to continue the modernization 

of IT systems, including labor and related 

contractual costs. This activity also includes 

the Return Review Program (RRP) that will 

take fraud detection and prevention for the IRS 

into the next generation and the development 

of Online Services projects that will build on 

existing service delivery capabilities to 

simplify the taxpayer’s online experience, 

provide secure digital communications, and 

add more interactive capabilities to existing 

self-service products. 

Legislative Proposals 

The FY 2015 President’s Budget request 

includes a number of legislative proposals 

intended to reduce the tax gap and improve tax 

compliance with minimal taxpayer burden. 

The Treasury Office of Tax Analysis (OTA) 

estimates these new tax gap proposals will 

increase revenue by $74.5 billion over the next 

ten years, which includes $52 billion generated 

by program integrity cap adjustments. The 

IRS estimates the implementation costs for the 

FY 2015 President’s Budget tax gap proposals 

to be $132.2 million (excluding the program 

integrity cap adjustments ten-year cost) over 

three years, including the initial startup, 

processing, and compliance operational costs. 

Note that in a few cases estimates are not yet 

available due to timing. The Administration 

proposes to expand information reporting and 

sharing, improve compliance by businesses, 

strengthen tax administration, and expand 

penalties. The Budget also proposes to amend 

the Balanced Budget and Emergency Deficit 

Control Act of 1985 (BBEDCA), as amended, 

to provide 10-years (FYs 2015-2024) of 

discretionary caps to permit program integrity 

cap adjustments costing $17 billion while 

saving $52 billion, thereby generating $35 

billion in net savings over the 10-year budget 

window. 

Department of the Treasury - Budget in Brief 75
IRS Performance by Program 

Program Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Taxpayer Services Customer Contacts Resolved Per Staff Year 12,419 16,320 20,767 22,750 25,000

Taxpayer Services Customer Service Representative (CSR) 

Level of Service (%) 

70.1 67.6 60.5 61.0 71.0

Taxpayer Services Percent Individual Returns Processed 

Electronically (%) 

76.9 80.5 82.5 84.1 84.6

Enforcement Automated Collection System (ACS) 

Accuracy (%) 

94.9 94.7 94.4 94.0 94.0

Enforcement Conviction Rate (%) 92.7 93.0 93.1 92.0 92.0

Enforcement Examination Coverage - Individual (%) 1.1 1.0 1.0 0.8 0.8

Description of Performance 

In FY 2013, the IRS was unable to maintain 

many of its taxpayer service and enforcement 

performance levels due to the impact of 

sequestration on program resources. 

Nevertheless, IRS continued to deliver in key 

areas, including international, return preparer 

compliance and refund fraud, including 

identity theft. 

Enforcement

As a result of the impacts of sequestration and 

furloughs, the IRS delivered key enforcement 

programs below 2012 levels. Total individual 

audits fell 5 percent from 1.48 million to 

1.40 million, while audits of high income 

individuals declined from 179,000 to 172,000. 

Business return audits dropped 13 percent 

from 70,000 to 61,000. 

In FY 2013, collections related to all 

enforcement activities totaled $53.3 billion, 

the fourth consecutive year the IRS exceeded 

$50 billion for a total IRS-wide ROI of 

$4.8 to $1. 

Total Enforcement Revenue collected 

increased $3.1 billion over FY 2012. Most of 

the increase came from $2.6 billion rise in 

revenue from Appeals which, due to the timing 

of the Appeals process, generally relates to 

examinations for much earlier years. Revenue 

from the Collection function, the levels of 

which also frequently rise and fall in tandem 

with the overall health of the economy, 

increased by nearly $1 billion in FY 2013. 

While the overall receipts from enforcement 

increased in 2013 compared to the prior year, 

the total is still down by more than $4.3 billion 

from four years ago. The reason for this 

decline is primarily due to a decline in revenue 

from audits, which dropped nearly $400 

million in FY 2013 to $9.83 billion, the lowest 

level in a decade. This decline in audit 

revenue is attributable to a decline in the 

number of returns audited. 

Department of the Treasury - Budget in Brief 76
The IRS strategic enforcement efforts and 

parallel Offshore Voluntary Disclosure 

Program (OVDP) gave U.S. taxpayers with 

undisclosed offshore assets or income an 

opportunity to become compliant with the U.S. 

tax system and avoid potential criminal 

charges. The OVDP program has resulted in 

the collection of more than $6 billion in back 

taxes, interest, and penalties from more than 

43,000 participants since the program was first 

established in 2009. 

International compliance programs have 

provided the IRS with a wealth of information 

on various banks and advisors assisting people 

with offshore tax evasion. In FY 2013, the 

IRS continued to implement strategies to 

address international issues by improving 

intra-governmental coordination, expanding 

IRS presence in U.S. territories, and enhancing 

compliance measures using customer-tailored 

strategies. The following actions were 

completed in FY 2013: 

 The IRS continued to lead the design and 

implementation of the Foreign Financial 

Institution registration and 

intergovernmental data exchange processes 

by working with foreign governments to 

develop a network of Intergovernmental 

Agreements; and 

 The IRS required taxpayers with foreign 

financial accounts exceeding $10,000 to 

file electronically through the Bank 

Secrecy Act E-File System. 

In addition to recognizing the tax 

administration challenges presented by crossborder transactions, the IRS continued to focus 

on providing service to return preparers. 

Return preparers play a key role in increasing 

taxpayer compliance and strengthening the 

integrity of the U.S. tax system. 

The IRS required anyone who prepared or 

assisted in preparing federal tax returns for 

compensation to have a valid Preparer Tax 

Identification Number (PTIN). In FY 2013, 

the IRS held a successful PTIN renewal season 

offering enhanced PTIN system usability, 

troubleshooting tips, and other tools, resulting 

in over 76,000 fewer telephone inquiries 

answered during the peak season. As of 

September 30, 2013, there were 689,865 valid 

PTINs. 

In FY 2013, the IRS continued to educate and 

inform paid return preparers on tax law 

compliance by: 

 Conducting educational visits with return 

preparers to assist them in completing and 

filing tax returns; 

 Visiting over 3,000 return preparers 

nationally, including 300 real-time EITC 

compliance visits; and 

 Addressing egregious preparers through a 

variety of methods to ensure appropriate 

penalties and/or sanctions were pursued. 

The IRS takes appropriate enforcement action 

against taxpayers who file fraudulently. The 

IRS criminal investigation program examines 

potential criminal violations of the Internal 

Revenue Code and related financial crimes 

such as money laundering, currency violations, 

tax-related identity theft fraud, and terrorist 

financing that adversely affect tax 

administration. In FY 2013, the IRS: 

 Completed 5,557 investigations; 

 Achieved a conviction rate of 93.1 percent; 

 Maintained a Department of Justice 

acceptance rate of 95.5 percent, which 

compares favorably with other federal law 

enforcement agencies; and 

 Obtained 3,311 convictions. 

Identity theft continues to grow and touches 

nearly every part of the IRS. In FY 2013, the 

Department of the Treasury - Budget in Brief 77
IRS continued to focus on a comprehensive 

and aggressive strategy to identify and combat 

tax-related identity theft. For FY 2013, the 

IRS: 

 Deployed the Identity Protection Personal 

Identification Number (IP PIN) to over 

770,000 taxpayers for the 2013 filing 

season. 

 Conducted 191 Identity Theft outreach 

events with tax and accounting 

practitioners, the general public, and the 

media. 

 Launched the Law Enforcement Assistance 

Program (LEAP) nationwide to facilitate 

sharing of information to support the 

investigation and prosecution of cases of 

identity theft. In FY 2013, 314 state/local 

law enforcement agencies from 35 states 

participated in the program. 

 Trained 35,000 employees to work with 

taxpayers and help them tackle their 

identity theft incidents and worked with 

victims to resolve and close more than 

565,000 identity theft cases, more than 

three times the number of cases resolved in 

the previous year. 

Taxpayer Service

Providing taxpayers top-quality service and 

helping them understand and meet their tax 

obligations remained top priorities for the IRS 

in FY 2013. 

During FY 2013, the IRS updated forms to 

help taxpayers comply with filing 

requirements, converting forms for visually 

impaired taxpayers and translated more tax 

products into multiple languages. In addition, 

the IRS continued its effort to redesign 

taxpayer correspondence in plain language and 

in a consistent format to make it easier for 

taxpayers to understand their obligations. The 

IRS released 56 redesigned notices; bringing 

the total in production to 181. 

The IRS delivered another successful filing 

season in 2013, rising to the challenges posed 

by tax legislation enacted on January 2, 2013. 

Despite the late legislation, the IRS took the 

necessary steps to minimize disruptions for 

taxpayers. The filing season began on January 

30, 2013, less than one month after the passage 

the legislation that affected more than 600 tax 

products. 

The IRS achieved the following results in 

2013: 

 Processing more than 147.6 million 

individual returns and issuing 

118.7 million refunds totaling almost 

$314 billion compared to 121.6 million 

refunds totaling $333 billion in 2012. 

 Achieving a 60.5 percent telephone level 

of service. 

 Answering 30.1 million assistor calls, a 

2.2 percent increase from 2012. 

 Answering 54.0 million automated calls. 

 Responding correctly to 95.7 percent of 

tax law questions and 96.0 percent of 

account questions received via the 

telephone. 

 Processing 49,202 Savings Bond requests, 

totaling $21.8 million. 

The IRS continued to provide alternative 

service options by increasing the amount of 

tax information and services available to 

taxpayers through www.IRS.gov. In FY 2013, 

taxpayers viewed www.IRS.gov web pages 

more than 1.87 billion times as they used the 

website and mobile application to: 

 Get forms and publications. More than 

217.5 million tax products were 

downloaded. 

Department of the Treasury - Budget in Brief 78
 Link to the Electronic Federal Tax 

Payment System (EFTPS). EFTPS 

processed nearly 145 million electronic tax 

payments totaling more than $2.3 trillion. 

 Get answers. Taxpayers made more than 

2.4 million visits to the Interactive Tax 

Assistant introduction page where 

taxpayers can receive answers to tax law 

questions. 

 Check refund status. Taxpayers used 

Where’s My Refund? more than 

200.5 million times to check on the status 

of their tax refunds, an increase of 51.6 

percent from 2012. 

In FY 2013, the IRS enhanced the “Where’s 

My Refund?” web tool to allow taxpayers to 

find out when their tax return was received, 

when the refund was approved, and when the 

refund was sent. The IRS also deployed a new 

telephone and web tool called “Where’s My 

Amended Return?” in both English and 

Spanish that allowed taxpayers to check the 

status of their Form 1040X amended tax 

returns for the current year and up to three 

prior years. The tool also provided taxpayers 

with information such as when their amended 

return was received, adjusted, and completed, 

as well as specific information regarding offset 

conditions such as a previous IRS tax liability 

or a past due obligation. 

The IRS continues to improve and expand on 

its outreach and educational services through 

partnerships with State taxing authorities, 

volunteer groups, and other organizations. 

Volunteer Income Tax Assistance (VITA) and 

Tax Counseling for the Elderly (TCE) sites 

provide free tax assistance for the elderly, 

disabled, and limited English proficient 

individuals and families. 

In FY 2013, over 91,800 volunteers prepared 

3.4 million federal returns, 95.3 percent of 

which were filed electronically, and over 

2.5 million state returns. The IRS also teamed 

up with its national partners to offer a remote 

filing method – Facilitated Self-Assistance 

(FSA) at VITA sites. More than 82,000 FSA 

returns were filed at the 330 VITA 

sites offering the FSA remote filing model. 

The Earned Income Tax Credit (EITC) is one 

of the federal government’s largest benefit 

programs for low-income working families 

and individuals. In FY 2013, the IRS held its 

seventh annual Awareness Day, promoting 

EITC awareness and free return preparation 

options. Through outreach activities, including 

news conferences, newsletters, e-mails, 

partnerships with community-based 

organizations, and an increased use of social 

media tools, the IRS achieved nationwide 

coverage in both English and Spanish markets, 

including over 15,000 hits on IRS.gov. 

Business Systems Modernization

IRS modernization efforts continued to focus 

on building and deploying advanced 

information technology (IT) systems, 

processes, and tools to improve efficiency and 

productivity. FY 2013 modernization 

successes included: 

 Customer Account Data Engine 2 (CADE 

2) posted over 139 million returns and 

issued over 111 million refunds totaling 

$281 billion during the filing season. Daily 

processing and posting of individual 

taxpayer accounts enabled faster refunds.

 Modernized e-File (MeF) Release 8 

deployed for the filing season and was the 

sole e-file platform used as the IRS 

processed 224.7 million individual Federal 

and State returns, and 16.8 million 

Business Master File returns.

 New Electronic Fraud Detection System 

(EFDS)/MeF interface was deployed, 

ensuring EFDS completed fraud detection 

before further processing. In FY 2013, 

EFDS processed over 138 million returns 

Department of the Treasury - Budget in Brief 79
and stopped over $10 billion in fraudulent 

refunds. 

 Information Return Document Matching 

System’s full Case Management 

functionality became available for 

casework in January 2013. Case 

management matches new information 

returns (e.g., 1099-K) with both individual 

and business tax returns to identify 

potential income underreporting. 

 New portal improves access to IRS.gov. 

The Integrated Enterprise Portal (IEP) has 

accommodated a 22 percent increase in 

visits and a 6 percent increase in page 

views compared to FY 2012. 

Dollars in Thousands

$000 FTE $000 FTE $000 FTE $000 FTE

FY 2014 Enacted

Reinvestment:

Expand Telecom Infrastructure to Handle Increased Demand 16,025 16,025

Subtotal FY 2015 Changes to Base $16,025 $16,025

FY 2015 ACA Program Increases:

Improve Taxpayer Service and Return Processing 58,248 822 15,699 7 73,947 829

Address Impact of Affordable Care Act (ACA) Statutory Requirements 36,574 349 19,525 50 56,099 399

Implement IT Changes to Deliver Tax Credits and Other Requirements 305,645 818 305,645 818

Subtotal FY 2015 ACA Program Increases $58,248 822 $36,574 349 $340,869 875 $435,691 2,046

Total FY 2015 ACA Budget Request $58,248 822 $36,574 349 $356,894 875 $451,716 2,046

Summary of Proposed FY 2015 ACA Budget Request 

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT

TOTAL

FY 2015 Affordable Care Act (ACA)

Department of the Treasury - Budget in Brief 80
Office of Financial Stability 

Program Disbursement, Repayments, and Cost/Savings 

Summary and Explanation of Programs 

The Emergency Economic Stabilization Act 

(EESA) was enacted in October 2008 in 

response to one of the worst financial crises in 

United States history. To address the crisis, 

EESA established the Office of Financial 

Stability (OFS) within the Treasury 

Department to implement the Troubled Asset 

Relief Program (TARP). EESA vested 

authority in the Secretary of the Treasury to 

“purchase, and to make and fund commitments 

to purchase, troubled assets from any financial 

institution, on such terms and conditions as are 

determined by the Secretary.” 

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act) 

enacted on July 21, 2010, reduced the TARP 

authority to purchase troubled assets to $475 

billion from an original $700 billion; required 

that repayments of amounts invested under 

TARP cannot be used to increase the purchase 

authority and are dedicated to reducing the 

federal debt; and prohibited new obligations 

for any program or initiative that was not 

already initiated prior to June 25, 2010. 

As a result of improved financial conditions 

and careful stewardship of the program, the 

ultimate cost to the taxpayers of TARP 

investments has dropped from the FY 2009 

estimate of $341 billion to $39.0 billion as of 

December 31, 2013 ($21.5 billion when 

Treasury’s additional AIG receipts are 

included). 

In FY 2015, OFS plans to obligate $184 

million and use 86 FTEs, a decrease of $36 

million and 17 FTEs from the current FY 2014 

estimates, to fund the management of the 

TARP housing programs and the continuing 

disposition of OFS’s remaining investments. 

The decrease in FTEs and outside contracts 

reflects the continued wind down of TARP. 

Legislative Proposals 

OFS has no legislative proposals for FY 2015. 

Description of Performance 

Bank Support Programs 

Capital Purchase Program (CPP) 

The CPP - OFS’s largest program - was 

launched to stabilize and build confidence in 

the financial system by bolstering the capital 

position of viable institutions. Treasury 

ultimately provided a total of $205 billion in 

capital to 707 institutions in 48 states, 

including more than 450 small and community 

banks and 22 Community Development 

Financial Institutions (CDFIs). 

Dollars in Billions (As of 12/31/13)

Cumulative 

Obligated

Cumulative 

Disbursed

Cumulative 

Outstanding 

(Includes Realized 

Losses)

Total Cumulative 

Income

Total Cumulative 

Repayments

Total Estimated 

Lifetime Costs 

(as of 11/30/13)

Bank Support Programs 250 245 2 35 273 (24)

Credit Market Programs 20 19 0 4 24 (3)

AIG Investment Program (AIG) 68 68 0 1 55 15 *

Automotive Industry Financing Program 80 80 10 7 63 14

Treasury Housing Programs 38 10 38

Total $457 $422 $12 $47 $415 $39 

Additional AIG Common Shares Held by Treasury 0 0 0 18 18 (18) *

Total for Programs and Shares $457 $422 $12 $65 $433 $21 

*If all Treasury AIG Investments are combined, we currently estimate a net gain of $2.3 billion on those shares.

Department of the Treasury - Budget in Brief 81
As of December 31, 2013, the CPP has 

generated $224.9 billion in proceeds for 

taxpayers with 86 institutions remaining in the 

program for a total of $2.1 billion in 

investments outstanding. 

Targeted Investment Program (TIP) 

OFS established the TIP in December 2008 to 

prevent a loss of confidence in critical 

financial institutions, which could impair 

broader financial markets, and undermine the 

overall economy. Treasury invested $20 

billion each in Bank of America and Citigroup 

under the TIP. As of December 31, 2009, the 

TIP was closed. Both Citigroup and Bank of 

America fully redeemed the Government's TIP 

investments of $40 billion plus $3 billion in 

dividends and $1.4 billion in warrants during 

2010, which generated $4.4 billion in net 

proceeds for taxpayers. 

Asset Guarantee Program (AGP) 

OFS established the AGP which was used in 

conjunction with the TIP to support the value 

of certain assets held by Bank of America and 

Citigroup by agreeing to absorb a portion of 

the losses on those assets. The AGP closed in 

December 2009 without paying any claims and 

has generated $4.1 billion in net proceeds for 

taxpayers. 

Community Development Capital Initiative 

(CDCI) 

To help mitigate the adverse impact that the 

financial crisis had on communities 

underserved by traditional banks, Treasury 

launched CDCI to provide capital to banks, 

thrifts, and credit unions that qualified as 

Community Development Financial 

Institutions (CDFIs) in February 2010. Under 

this program, CDFI banks and thrifts received 

investments of capital with an initial dividend 

or interest rate of two percent, compared to the 

five percent rate offered under the CPP. 

Treasury invested a total of $570 million in 84 

CDFIs. As of December 31, 2013, 14 

institutions have fully repaid their investment 

and one has been taken into receivership, and 

the program has approximately $468 million in 

investments outstanding. 

Credit Market Programs 

Public-Private Investment Program (PPIP) 

Treasury launched PPIP to support credit 

market functioning and facilitate price 

discovery in the markets for commercial and 

residential mortgage financing. Using TARP 

funds alongside equity capital raised from 

private investors, PPIP was designed to 

generate a significant purchasing power and 

demand for RMBS and CMBS. Treasury 

originally committed approximately $22.1 

billion of equity and loans to the nine PublicPrivate Investment Funds (PPIFs). As of 

December 31, 2013, all of the PPIFs have been 

effectively wound down and OFS has 

recovered all of its debt and equity 

investments plus an additional $3.8 billion. 

Term Asset-Backed Securities Loan Facility 

(TALF) 

The TALF was a joint Federal ReserveTreasury program that was designed to restart 

the asset-backed securities (ABS) markets that 

provide credit to consumers and small 

businesses, which had ground to a virtual 

standstill during the early months of the 

financial crisis. 

Treasury originally committed to provide $20 

billion in the form of subordinated debt to 

TALF, LLC to support a $200 billion loan 

portfolio. This commitment was reduced twice 

to $4.3 billion in June 2010 and $1.4 billion in 

June 2012 as the outstanding loan portfolio 

decreased. On January 15, 2013, the 

commitment was eliminated. During fiscal 

year 2013, OFS’s original disbursed 

investment through the program was fully 

repaid with interest. 

Department of the Treasury - Budget in Brief 82
As of December 31, 2013, accumulated 

income earned from investments in the TALF, 

LLC totaled $587 million, all of which 

occurred during fiscal years 2013 and 2014. 

Small Business Administration (SBA) 7(a) 

Securities Purchase Program 

In March 2010, OFS announced the SBA 7(a) 

Securities Purchase Program to encourage 

financial institutions to increase small business 

lending and to ensure that credit flows to 

entrepreneurs and small business owners. 

Treasury invested in a total of 31 SBA 7(a) 

securities with a value of approximately $367 

million (excluding purchased accrued interest) 

between March and September 2010. In 

January 2012, Treasury concluded winding 

down the program in total, collecting $376 

million through sales, principal payments, 

interest payments over the life of the program, 

representing cash collections of approximately 

$9 million more than its original investment of 

$367 million. 

American International Group, Inc. (AIG) 

Investment Program 

During the financial crisis, the federal 

government provided assistance to prevent the 

collapse of AIG. This assistance came from 

the Federal Reserve Bank of New York 

(FRBNY) and Treasury. The consequences of 

AIG failing at that time and in those 

circumstances would have been catastrophic to 

American families, businesses, and the larger 

economy. Therefore, the government took 

action to protect the U.S. financial system. 

The government's overall support for AIG 

peaked at approximately $182 billion. That 

amount included $70 billion that Treasury 

committed through TARP, and $112 billion 

committed by the FRBNY. As a result of the 

combined efforts of AIG, Treasury, and the 

FRBNY, the government’s support for AIG 

was substantially reduced during 2012 and 

taxpayers began to see a positive return on 

their overall investment in the company. As of 

December 31, 2012, the $182 billion 

committed to stabilize the company had been 

fully recovered – plus an additional positive 

return of $22.7 billion. Treasury continued to 

hold warrants to purchase approximately 2.7 

million shares of AIG common stock. On 

March 1, 2013, AIG purchased the remaining 

warrants and Treasury has fully exited its 

investment in AIG. 

Automotive Industry Financing Program 

(AIFP) 

OFS established the AIFP on December 19, 

2008, to help prevent a significant disruption 

to the American automotive industry, which 

would have caused a substantial disruption to 

financial markets and had a negative effect on 

the economy. Under the AIFP, OFS invested a 

total of $79.8 billion in General Motors (GM), 

Chrysler, and their financing affiliates. 

In December 2012, OFS announced its intent 

to fully exit its investment in GM within the 

next 12-15 months. Concurrently with that 

announcement, GM purchased 200 million 

shares of GM common stock, for proceeds of 

$5.5 billion. OFS completed the disposition of 

all remaining shares as of December 2013. 

Treasury committed a total of $12.4 billion to 

Chrysler and Chrysler Financial under TARP. 

In July 2011, Treasury fully exited its 

investment in Chrysler, six years ahead of 

schedule. Of the $12.4 billion disbursed to 

Chrysler under TARP, Treasury recovered 

more than $11.1 billion for taxpayers through 

principal repayments, interest, and cancelled 

commitments. 

OFS invested $17.2 billion in Ally Financial 

(Ally) under TARP (includes $884 million 

invested through GM). As of December 31, 

2013 OFS’s outstanding investment in Ally 

stood at $9.0 billion. Ally repurchased all of its 

MCP stock from OFS for $5.2 billion in 

Department of the Treasury - Budget in Brief 83
November 2013 and OFS received an 

additional $725 million for the elimination of 

the Share Adjustment Right (SAR). OFS sold 

approximately 410,000 common shares in a 

private placement for $3.0 billion in January 

2014. OFS’ remaining AIFP holdings consist 

of approximately 572,000 shares of Ally 

common. OFS is actively seeking to wind 

down the remaining investment in Ally. 

Treasury Housing Programs Under TARP 

OFS established two central programs under 

TARP – the Making Home Affordable (MHA) 

program and the Housing Finance Agency 

Innovation Fund for the Hardest Hit Housing 

Markets (HHF) – to help prevent avoidable 

foreclosures and preserve homeownership. 

OFS has also provided support for the Federal 

Housing Administration’s Short Refinance 

Program to assist borrowers who are current 

on their mortgage but owe more than their 

home is worth, in refinancing into an FHAinsured loan. 

Making Home Affordable Program (MHA) 

MHA includes sub programs that assist 

borrowers in modifying first and second 

mortgages, including benefits for unemployed 

homeowners, as well as modification 

alternatives. Through December 31, 2013, 

there were nearly 1.9 million homeowner 

assistance actions granted through MHA. 

Funds are paid out over the length of the 

modifications, and as of December 31, 2013, 

Treasury disbursed $7.2 billion out of a 

possible $29.9 billion of incentive fees under 

MHA. 

Housing Finance Agency (HFA) Hardest-Hit 

Fund 

The HFA Hardest-Hit Fund was implemented 

in FY 2010 and provides targeted aid to 

homeowners in the states hit hardest by the 

housing market downturn and unemployment. 

Eighteen states and the District of Columbia 

have developed custom programs targeted to 

address the specific needs and economic 

conditions of their area. As of December 31, 

2013, Treasury disbursed $3.2 billion out of a 

possible $7.6 billion under the HFA HardestHit Fund. 

Department of the Treasury - Budget in Brief 84
State Small Business Credit Initiative 

Program Summary 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 to FY 2015

 Actual Estimated Estimated $ Change % Change

Budgetary Resources:

Recovery from Prior Years 2,155 2,310 1,000 (1,310) -56.71%

Unobligated Balances from Prior Years 42,696 25,777 19,788 (5,989) -23.23%

Subtotal Budgetary Resources $44,851 $28,087 $20,788 (7,299) -25.99%

Other Resources:

SSBCI Program 13,198 0 0 0 0.00%

SSBCI Administration 6,431 8,299 6,752 (1,547) -18.64%

Subtotal Other Resources $19,629 $8,299 $6,752 (1,547) -18.64%

Total FTE 11 14 12 (2) -14.29%

*Amounts may differ from those printed in the FY 2015 President’s Budget Appendix due to rounding. 

Summary 

The SSBCI funds new and existing state 

programs that support lending to and 

investment in small businesses in order to 

stimulate economic growth and new 

jobs. Under the SSBCI, participating states 

use the federal funds for programs that 

leverage private lending to help finance small 

businesses and manufacturers that are 

creditworthy, but are not getting the loans they 

need to expand and create jobs. The Small 

Business Jobs Act of 2010 authorized and 

appropriated $1.5 billion for a program that 

sunsets in 2017. Due to the success of the first 

round of SSBCI, the President’s Budget 

proposes a second round of $1.5 billion for a 

program to run from 2015 through 2021. The 

second round expands on the success of the 

first round and capitalizes on new working 

relationships between states and small 

business lenders and investors. 

Priorities: 

 To provide direct funding support to states 

for use in programs designed to increase 

access to credit for small businesses. 

 To support state CAPs and other credit 

support programs (OCSP) that support 

lending to and investment in small 

businesses and small manufacturers. 

 To monitor the deployment of SSBCI 

funds among approved state programs and 

to ensure adherence to all Treasury 

compliance standards. 

 To promote best practices in program 

design, operations, and marketing among 

state-run programs. 

 To provide dedicated technical assistance 

to states as they implement these programs 

and deploy funds to eligible small 

businesses. 

SSBCI FY 2015 Budget Highlights 

Dollars in Thousands

State Small Business Credit Initiative FTE Amount

FY 2014 Estimated 14 $8,299

Changes to Base:

Maintaining Current Levels (MCLs): - $99

Pay-Raise - $26

Non-Pay - $73

Subtotal Changes to Base - $99

Total FY 2015 Base - $8,398

Program Changes:

Program Decreases: (2) ($1,646)

Program Reduction (2) ($1,646)

Total FY 2015 Estimated 12 $6,752

 

Department of the Treasury - Budget in Brief 85
FY 2015 Budget Adjustments 

Maintaining Current Level (MCLs) 

Pay-Raise +$26,000 / +0 FTE 

Funds are requested for the proposed January 

2015 pay-raise and the annualization of the 

2014 pay-raise. 

Non-Pay +$73,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Program Decreases 

Program Reduction -$1,646,000 / -2 FTE 

Contract and personnel support related to state 

technical assistance will decrease as the 

funding allocated to the states and 

municipalities becomes fully expended. 

Legislative Proposals 

Treasury recommends new legislation 

authorizing a $1.5 billion extension of the 

SSBCI. Of the total amount proposed, $1 

billion will be competitively awarded to states 

best able to target underserved groups, 

leverage Federal funding, and evaluate results. 

An additional $500 million will be allocated to 

states according to a need-based formula. 

Description of Performance 

By the end of FY 2013, states reported 

expending, obligating, or transferring over 

$677 million in SSBCI funds more than 

double the total at the end of FY 2012. As of 

February 2014, in less than three years of 

program activity, Treasury has disbursed over 

$1 billion, or 70 percent of allocations to 

states. SSBCI estimates disbursing cumulative 

totals of approximately $1.3 billion by the end 

of FY 2014 and $1.44 billion by the end of 

FY 2015, as states request disbursement of 

their approved allocations under the program. 

In FY 2015, Treasury will continue to monitor 

the performance of state programs, tracking 

loans and investments made with SSBCI 

funds, and disbursing obligated funds to 

states. In addition, Treasury will process 

requests from states to modify their programs 

in order to improve performance. Treasury 

plans to approve or deny 90 percent of all state 

requests for modifications and subsequent 

disbursements within 90 calendar days of final 

receipt. Additionally, Treasury plans to collect 

90 percent of all quarterly reports within five 

days of the deadline to report. Treasury will 

also provide on-going technical support to 

recipients, including the dissemination of 

practices among recipients on such elements as 

program design, operations, and marketing.

SSBCI Performance 

Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 

 Actual Actual Actual Target Target 

Cumulative Value of SSBCI Funds Transferred to 

States (thousands) $366,000 $553,000 $917,000 $1,300,000 $1,440,000 

State Subsequent Disbursement Requests Approved 

or Denied within 90 days (%) NA 100 100 90 90 

State Requests to Modify Allocation Agreements 

Approved or Denied within 90 days (%) NA 100 90 90 90 

Receive State Quarterly Reports within five business 

days of reporting deadline (%) NA 100 93 90 90 

Department of the Treasury - Budget in Brief 86
Office of Financial Research 

Program Summary by Budget Activity 

Dollars in thousands 

Budget Activities

FY 2013 FY 2014 FY 2015 FY 2014 to FY 2015

Actual Estimated Estimated Change % Change

Data Center 37,619 46,489 49,315 2,826 6.08%

Research Center 4,733 7,712 9,948 2,236 28.99%

Operations and Support Services 22,953 31,774 32,486 712 2.24%

Total Cost of Operations $65,305 $85,975 $91,749 $5,774 6.72%

FTE 109 215 249 34 15.81%

Summary 

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 (the 

Dodd-Frank Act) established the Office of 

Financial Research (OFR or Office) within 

the Department of the Treasury (Treasury) 

to serve the Financial Stability Oversight 

Council (Council), its member agencies, and 

the public by improving the quality, 

transparency, and accessibility of financial 

data and information; conducting and 

sponsoring research related to financial 

stability; and promoting best practices in 

risk management. 

The OFR, as an office within the Treasury 

Department, is aligned with the Treasury 

strategic goal of “Promoting domestic 

economic growth and stability while 

continuing reforms of the financial system,” 

and the associated objective of “Complete 

implementation of financial regulatory 

reform initiatives and continue monitoring 

the markets for threats to stability.” The 

OFR also is aligned with the Treasury 

objective of “Support effective, data-driven 

decision making and encourage transparency 

through intelligent gathering, analysis, 

sharing, use and dissemination of 

information” to help create a 21st century 

approach to government. Aligning to these 

Treasury goals and objectives, and 

consistent with the Dodd-Frank Act, the 

OFR has established five strategic goals to 

help achieve its mission, as described 

below.1

Support the Council through the secure 

provision of high-quality financial data 

and analysis needed to monitor threats to 

financial stability.

Key objectives of this goal include: 

 providing research and analytical 

support to the Council on developments 

in the financial system and potential 

threats to financial stability; 

 collecting and securely providing data to 

the Council and its member agencies if 

such data are essential to monitoring 

threats to financial stability and not 

otherwise available; 

 seeking to reduce reporting burdens for 

financial companies by coordinating data 

requests; and 

 enhancing the quality and consistency of 

financial data available to Council 

member agencies through direct data 

services, including shared procurement, 

data validation, and data management. 

 

1

See the OFR’s strategic plan for FY 2012-2014 at 

http://www.treasury.gov/initiatives/wsr/ofr/Documents/OFRStrate

gicFramework.pdf and Treasury’s strategic plan at 

http://www.treasury.gov/about/budget-performance/strategicplan/Pages/index.aspx 

Department of the Treasury - Budget in Brief 87
Develop and promote data-related 

standards and best practices.

Key objectives underlying this goal include: 

 help establish global data-related 

standards to improve the quality and 

scope of data related to financial 

stability, while also reducing the cost of 

reporting for financial market 

participants, and 

 assist Council members in defining 

standards and best practices for data 

collection and management to increase

efficiencies.

Establish a center of excellence for 

research on financial stability and promote 

best practices for financial risk 

management.

Key objectives underlying this goal include: 

 conducting and sponsoring research 

(including collaborating with outside 

researchers) to identify, monitor, and 

evaluate threats to financial stability and 

to analyze disruptions when and after 

they occur;

 evaluating and reporting on stress tests 

or other stability-related evaluations; 

 providing advice on the effects of 

policies related to systemic risk; and 

 promoting best practices in financial risk 

management. 

Provide the public with key data and

analysis, while protecting sensitive 

information.

Key objectives underlying this goal include: 

 The key objective of this goal is to 

increase the transparency and 

distribution of research on the financial 

system by publishing financial analysis, 

data, and information, while 

safeguarding sensitive information. The 

OFR’s primary publications include its 

Annual Report, which highlights the 

agency’s analysis and information about 

its activities; working papers that 

highlight OFR research; and reference 

databases of nonbank financial 

companies. 

Establish the OFR as an efficient 

organization and world-class workplace.

Key objectives underlying this goal include: 

 Key objectives of this goal are to recruit, 

retain, and develop talented people and 

to fully engage them in the effort to 

accomplish the organization’s mission. 

These employees will manage Office 

information securely and efficiently; 

produce products and services useful to 

the Council and other key stakeholders; 

and administer the OFR’s finances in a 

cost-effective, transparent, and 

accountable manner.

OFR FY 2015 Budget Highlights 

Dollars in Thousands

Office of Financial Research FTE Amount

FY 2014 Estimated Budget 215 85,975 

Total FY 2015 Base 215 85,975 

Program Changes:

Program Adjustment 34 5,774 

Personnel Steady State 34 6,400 

Non-Personnel Steady State (626)

Total FY 2015 Estimated Budget 249 91,749 

The OFR is financed through assessments on certain financial 

companies. 

Explanation of Budget Activities 

The Dodd-Frank Act provided that the Data 

Center, on behalf of the Council, collect, 

validate, and maintain all data necessary to 

carry out the duties of the Office. As part of 

this mandate, the Data Center provides data 

services to federal financial regulators to 

increase efficiency in data acquisition and 

management, to promote the reduction of 

redundant reporting requirements across the 

regulatory system (including through more 

effective data sharing arrangements), and to 

ensure the security of sensitive data. The 

promotion of standards for financial data is 

expected to provide benefits to regulators 

Department of the Treasury - Budget in Brief 88
and financial market participants by making 

data aggregation easier, improving analysis, 

and reducing costs associated with data 

collection. To support transparency in its 

operations and better public understanding 

of risks to financial stability, the Data Center 

also publishes data and data-related 

information, as well as information on its 

activities. 

The Dodd-Frank Act provided that the 

Research and Analysis Center, on behalf of 

the Council, develop and maintain 

independent analytical capabilities and 

computing resources: 

 To develop and maintain metrics and 

reporting systems for risks to the 

financial stability of the United States; 

 To monitor, investigate, and report on 

changes in system-wide risk levels and 

patterns to the Council and to Congress; 

 To conduct, coordinate, and sponsor 

research to support and improve 

regulation of financial entities and 

markets; 

 To evaluate and report on stress tests or 

other stability-related evaluations of 

financial entities overseen by Council 

member agencies; 

 To maintain the expertise necessary to 

support specific requests for advice and 

assistance from financial regulators; 

 To investigate disruptions and failures in 

the financial markets, report findings, 

and make recommendations to the 

Council based on those findings; 

 To conduct studies and provide advice 

on the impact of policies related to 

systemic risk; and, 

 To promote best practices for financial 

risk management. 

To support effective achievement of these 

objectives, the OFR is also establishing 

forums and networks to bring together 

experts from within and outside the 

regulatory system. In addition, the OFR is 

publishing key results of its analyses to 

support transparency in its operations and 

promote public understanding of threats to 

financial stability. 

These activities cover all operational, legal, 

and administrative functions that support the 

effective, transparent, and well-monitored 

delivery of the OFR’s core outputs related to 

data, research, and analysis. This includes 

support provided through reimbursable 

arrangements with other activities in 

Treasury Departmental Offices, as well as 

outside service providers. 

Legislative Proposals 

OFR has no legislative proposals. 

Description of Performance 

In early FY 2013, the OFR established 

performance measures tied to its strategic 

goals and collected data on those measures 

through the fourth quarter. The OFR met 88 

percent of its performance measure targets 

in FY 2013. The OFR is continuing to 

review its performance measures in FY 2014 

and may revise them based on its strategic 

planning process. The OFR removed the 

measure, “Percent of OFR implementation 

priorities completed” from the budget 

measures in FY 2013 because results lagged 

a year behind the budget submission. The 

OFR now measures its progress by quarter. 

The OFR will continue to review all 

measures as the organization matures, and 

revise them as necessary. 

Department of the Treasury - Budget in Brief 89
OFR Performance by Budget Activity

Budget Activity Performance Measure

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Target

Data Center

Percent of responses to Council data and 

research requests that meet delivery 

targets

94 85 85

Data Center

Percent of project milestones met for 

establishment of an interagency data 

inventory program

88 DISC DISC

Data Center

Percent of milestones met in information 

standards strategy

100 100 DISC

Research and Analysis Number of R&A products published 10 15 18

Research and Analysis

Number of R&A products co-authored or 

pursued in collaboration with outside 

researchers, government agencies, or 

others

8 10 12

External Affairs

Percent increase in the number of OFR 

web page visits

1 15 5

Operations and Support Services

Cost of the OFR relative to total assessed 

assets, per $billion assessed

$3,230

$7,700 

(to be 

based 

on a 4-

year 

rolling 

average)

$7,700 

(to be 

based 

on a 4-

year 

rolling 

average)

Operations and Support Services Total staff hired compared to targets 85% 95% 95%

Key: DISC - Discontinued; B – Baseline

Department of the Treasury - Budget in Brief 90
Financial Stability Oversight Council

Program Summary by Budget Activity 

Dollars in Thousands 

Financial Stability Oversight Council 

FY 2013 FY 2014 FY 2015 FY 2014 to FY 2015 

Actual Estimated Estimated Change % Change 

FSOC Secretariat $5,679 $7,673 $7,872 $200 3% 

FDIC Payment $6,327 $11,600 $12,500 $900 8% 

Total Cost of Operations $12,006 $19,273 $20,372 $1,100 6%

FTE 23 25 26 1 4% 

Summary 

Prior to the 2008 financial crisis, the existing 

financial regulatory framework focused 

narrowly on individual institutions and 

markets, which allowed supervisory gaps to 

grow and regulatory inconsistencies to 

emerge – in turn, allowing arbitrage and 

weakened standards. The Dodd-Frank Wall 

Street Reform and Consumer Protection Act 

(the Dodd-Frank Act) established the 

Financial Stability Oversight Council 

(Council) with a clear statutory mandate that 

created for the first time collective 

accountability for identifying and 

responding to emerging threats to financial 

stability. The Council is chaired by the 

Secretary of the Treasury and consists of ten 

voting members and five nonvoting 

members. The Council brings together the 

expertise of the federal financial regulators, 

an insurance expert appointed by the 

President, and state regulators. 

The Council’s three primary purposes under 

the Act are: 

1. To identify risks to the financial stability 

of the United States that could arise from 

the material financial distress or failure, 

or ongoing activities, of large, 

interconnected bank holding companies 

or nonbank financial companies, or that 

could arise outside the financial services 

marketplace. 

2. To promote market discipline, by 

eliminating expectations on the part of 

shareholders, creditors, and 

counterparties of such companies 

that the U.S. government will shield 

them from losses in the event of failure. 

3. To respond to emerging threats to the 

stability of the U.S. financial system. 

Over the last year, the Council has made 

final determinations that three nonbank 

financial companies will be subject to 

Federal Reserve supervision and enhanced 

prudential standards. The Council continued 

to monitor the eight financial market utilities 

(FMUs) that were designated as 

systemically important by the Council in 

2012. The Council also continued to 

identify and monitor potential risks to U.S. 

financial stability; fulfilled explicit statutory 

requirements, including the completion of its 

third annual report to Congress; and served 

as a forum for discussion and coordination 

among the member agencies implementing 

the Dodd-Frank Act. 

Over the next year, the Council will 

continue to evaluate nonbank financial 

companies for potential designation for 

Federal Reserve supervision and enhanced 

prudential standards; consider whether to 

designate additional FMUs as systemically 

important; monitor the financial system for 

Department of the Treasury - Budget in Brief 91
risks to U.S. financial stability; and facilitate 

interagency cooperation to identify and 

analyze potential emerging threats. The 

Council will also continue to facilitate 

interagency coordination and information 

sharing with respect to various regulatory 

initiatives. 

The Council is required by the Dodd-Frank 

Act to convene no less than quarterly, but 

the Council has convened on a more 

frequent basis to share information on key 

financial developments, coordinate on 

regulatory implementation, and monitor 

progress on recommendations from the 

Council’s annual reports. In 2013, the 

Council convened 10 times. The Council 

will continue to remain focused on both 

identifying near-term threats and addressing 

structural vulnerabilities in the financial 

system. Transparency on Council work has 

routinely been provided through an annual 

report to Congress, periodic Congressional 

testimony on Council activities and 

emerging threats to financial stability, and 

regular communications to the public about 

Council activities and decisions. 

FSOC FY 2015 Budget Highlights 

Dollars in Thousands 

Financial Stability Oversight Council1 FTE Amount 

FY 2014 Estimated Budget 25 $19,273 

Changes to Base: 

 Other Adjustments 1 $1,100 

 Hiring Plan Adjustment 1 $200 

 FDIC Payment Adjustment $900 

Total FY 2015 Base 26 $20,372 

FY 2015 Estimated 26 $20,372 1

Includes FDIC reimbursements and the impacts of inflation and the proposed one 

percent pay increase 

 

Explanation of Budget Activities

FSOC Secretariat ($7,872,000 from 

assessments): 

The Council has a clear statutory mandate to 

facilitate coordination among financial 

regulators and identify risks and respond to 

emerging threats to U.S. financial stability. 

The Council is not a bureau or office of the 

Department of the Treasury. However, 

under the Dodd-Frank Act, the Council’s 

expenses are considered expenses of the 

Office of Financial Research, an office 

within the Department of the Treasury. 

FDIC Payments ($12,500,000 from 

assessments): 

Section 210(n)(10) of the Dodd-Frank Act 

provides that certain reasonable 

implementation expenses of the FDIC 

incurred after the enactment of the DoddFrank Act shall be treated as expenses of the 

Council. The FDIC must periodically 

submit requests for reimbursement for 

implementation expenses to the Chairperson 

of the Council, who shall arrange for prompt 

reimbursement to the FDIC of reasonable 

implementation expenses. The expenses 

estimated are for rule writing and resolution 

planning consistent with the FDIC's 

implementation of its responsibilities under 

Title II of the Dodd-Frank Act. 

Legislative Proposals

FSOC has no legislative proposals. 

Description of Performance

There are no measures specified for 

managing Council performance at this time. 

Information on the Council is provided on 

www.treasury.gov, www.fsoc.gov, and 

member agency websites to provide 

transparency and accountability. 

Department of the Treasury - Budget in Brief 92
Bureau of Engraving and Printing 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $656,000 $733,208 $748,592 $15,384 2.10%

Total Cost of Operations $656,000 $733,208 $748,592 $15,384 2.10%

FTE 1,890 1,925 1,944 19 0.99%

Summary 

In support of Treasury’s strategic goal of 

“Enhance U.S. Competitiveness and Promote 

International Financial Stability and Balanced 

Global Growth”, the mission of the Bureau of 

Engraving and Printing (BEP) is to develop 

and produce United States currency notes, 

trusted worldwide. 

FY 2015 Priorities 

 Achieve BEP’s strategic goals. 

 Product quality - Produce and deliver 

currency notes ordered by the Federal 

Reserve Board that consistently meet the 

customer’s high quality standards. 

 Counterfeit Deterrence – Conduct research 

and development, collaborate with key 

stakeholders, in order to deter 

counterfeiting and maintain public trust in 

the security and reliability of U.S. currency 

notes. 

 Meaningful Access – Assist users of U.S. 

currency, including the blind and visually 

impaired, with the use and denomination 

of currency. 

In FY 2015, BEP, along with the U.S. Mint, 

will work to assess the future of currency. 

Driven in part by international demand, the 

number of currency notes in circulation has 

increased significantly over the past decade. 

However, improvements in Federal Reserve 

Bank processing and a longer note life have 

kept production relatively stable. The 

production and circulation of currency in the 

United States have been largely unchanged for 

decades, despite the growth in electronic 

financial transactions. Treasury is undertaking 

a comprehensive review of U.S. currency in 

order to efficiently promote commerce in the 

21st century. 

The BEP operates on the basis of authority 

conferred upon the Secretary of the Treasury 

by 31 U.S.C. 321(a) (4) to engrave and print 

currency and other security documents. 

Operations are financed through a revolving 

fund established in 1950 in accordance with 

Public Law 81-656. The fund is reimbursed 

for direct and indirect costs of operations, 

including administrative expenses, through 

product sales. In 1977, Public Law 95-81 

authorized the Bureau to include an amount 

sufficient to fund capital investment and to 

meet working capital requirements in the 

prices charged for products, eliminating the 

need for annual appropriations from Congress. 

BEP’s strategic goals are to produce U.S. 

currency that function flawlessly in commerce 

by creating innovative currency designs that 

provide effective counterfeit deterrence and 

meaningful access to currency note usage for 

all; achieve organizational excellence and 

customer satisfaction through balanced 

investment in people, processes, facilities, and 

technology. The Bureau also provides 

technical assistance and advice to other 

Federal agencies in the design and production 

Department of the Treasury - Budget in Brief 93
of documents which require counterfeit 

deterrent features, due to their innate value or 

other characteristics. 

The Bureau produces the paper currency notes 

ordered by the Federal Reserve Board (FRB). 

During FY 2015, BEP expects to produce and 

deliver 8.3 billion notes to the FRB to meet 

currency demand. This represents no increase 

in the number of notes produced from the 8.3 

billion note program expected to be delivered 

in the FY 2014 program. In order to meet 

continued international demand, the 

anticipated denominations ordered will be the 

more costly higher denominated notes. 

BEP supports a comprehensive anticounterfeiting program built around effective 

note design, public education, and aggressive 

law enforcement. The Bureau will continue its 

work in 2015 with the Advanced Counterfeit 

Deterrent (ACD) Steering Committee to 

research and develop future currency designs 

that will enhance and protect U.S. currency 

notes. The ACD Committee includes 

representatives from BEP, the Department of 

the Treasury, the U.S. Secret Service, and the 

FRB. 

Over the last decade, research and 

development of new technologies for use in 

currency note production has become a 

priority at the Bureau as more sophisticated 

counterfeit deterrent features are needed to 

protect future generations of currency notes. 

Via its website www.bep.gov, BEP seeks 

information about obtaining, testing, and 

evaluating technologies or materials that may 

have potential application in the development 

of new counterfeit deterrent features in 

currency notes. 

 

The importance of producing and delivering 

currency of consistently high quality, note 

after note, cannot be overstated, especially for 

the redesigned $100 note. It is estimated by 

the Federal Reserve that as many as two-thirds 

of all $100 notes circulate outside the United 

States. 

Work will continue in FY 2015 on the goal of 

enabling the Nation’s currency to better serve 

domestic and international users, including the 

blind and visually impaired. The Bureau will 

be incorporating features into the next redesign 

of currency that will assist every American to 

better use and denominate currency. BEP will 

continue its efforts to research and develop 

tactile features that will enhance future note 

designs. Testing and refinement of features 

will continue to determine which processes 

and features work best at the production 

volumes needed for U.S. currency. While no 

timetable has been set for the introduction of 

this currency, the next redesign will 

incorporate changes to make U.S. currency 

more accessible to those who are blind and 

visually impaired. 

The FY 2015 Budget request continues to fund 

a BEP Currency reader distribution program. 

Under this program, United States citizens and 

legal residents who are blind or visually 

impaired are provided a currency reader to aid 

in the denomination of US currency. The 

FY 2015 request is based on providing an 

estimated 300,000 reader to the blind or 

visually impaired. 

 

Department of the Treasury - Budget in Brief 94
BEP FY 2015 Budget Highlights 

Dollars in Thousands

Bureau of Engraving and Printing FTE Materials Operating & 

Capital Total

FY 2014 Estimated 1,925 $304,500 $428,708 $733,208

Changes to Base:

Maintaining Current Levels (MCLs): - - $7,584 $7,584

Pay-Raise - - $2,849 $2,849

FERS Contribution Increase - - $2,172 $2,172

Non-Pay - - $2,563 $2,563

Efficiency Savings: (8) ($750) ($10,200) ($10,950)

CQA Efficiencies/Reduced Spoilage - ($750) ($250) ($1,000)

Contract Savings/Discontinue Contract for Historic

Resource Ctr - - ($500) ($500)

Contract Savings/Discontinue Fitness Center

Contractor Support - - ($250) ($250)

Defer Targeted Facilities Investments/Currency

Sheet Accountability Sys - - ($6,200) ($6,200)

Offer Separation Incentives (VISP/VERA) - - ($400) ($400)

Reduced Leased Parking Spaces by 50 Percent - - ($250) ($250)

Release Non-Production TEMP Hires (8) - ($800) ($800)

Water Usage Reduction/Recycling - - ($300) ($300)

Reduced Custodial Contract - - ($1,000) ($1,000)

Offer Voluntary LWOP Thanksgiving Week - - ($250) ($250)

Subtotal Changes to Base (8) ($750) ($2,616) ($3,366)

Total FY 2015 Base 1,917 $303,750 $426,092 $729,842

Program Changes:

Program Decreases: - ($11,500) - ($11,500)

Estimated Changes in Currency Manufacturing

Program in FY 2015 - ($11,500) - ($11,500)

Program Increases: 27 - $30,250 $30,250

Warehouse Center for Excellence - - $2,000 $2,000

Currency Reader Loaner Program - - $26,125 $26,125

Direct Labor for Additional Production Processes 27 - $2,125 $2,125

Total FY 2015 Estimated 1,944 $292,250 $456,342 $748,592

FY 2015 Budget Adjustments 

Maintaining Current Level (MCLs) 

Pay-Raise +$2,849,000 / +0 FTE 

Funds are required for the proposed January 

2015 pay-raise and for the annualization of the 

2014 pay-raise. 

FERS Contribution Increase +$2,172,000 

 / +0 FTE 

Funds are required for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$2,563,000 / +0 FTE 

Funds are required for inflation adjustments in 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Efficiency Savings 

CQA Efficiencies/Reduced Spoilage 

-$1,000,000 / +0 FTE 

As a result of CQA efficiencies and spoilage 

reduction efforts, BEP anticipates better 

production yields. 

Contract Savings/Discontinue Contract for 

Historic Resource Ctr -$500,000 / +0 FTE 

By discontinuing the contractor support for 

BEP’s Historic Resource Center, BEP will 

decrease contract costs while having no impact 

on BEP’s primary mission. The 

restoration/preservation of historic pieces will 

resume when funding becomes available. 

Department of the Treasury - Budget in Brief 95
Contract Savings/Discontinue Fitness Center 

Contractor Support -$250,000 / +0 FTE 

By discontinuing the contractor support for the 

BEP Fitness Center, BEP will decrease 

contract costs while having no impact on 

BEP’s primary mission. 

Defer Targeted Facilities 

Investments/Currency Sheet Accountability 

Sys -$6,200,000 / +0 FTE 

Delay implementing Currency Sheet 

Accountability System on the other production 

lines at both facilities. In addition, BEP 

continues to defer needed facility 

improvements to control cost. 

Offer Separation Incentives (VISP/VERA) 

-$400,000 / +0 FTE 

BEP plans to continue current right-sizing 

efforts by offering separation incentives 

(VERA/VSIP). 

Reduced Leased Parking Spaces by 50 

Percent -$250,000 / +0 FTE 

BEP will reduce leased parking space costs by 

50 percent in FY 2015; evening and midnight 

shift employees will have priority for available 

spaces. 

Release Non-Production TEMP Hires 

-$800,000 / -8 FTE 

Releasing non-production TEMP hires will 

allow BEP to fill gaps in production related 

positions. 

Water Usage Reduction/Recycling -$300,000 

/ +0 FTE 

Efficiency savings from reduced chemical 

usage for manufacturing wiping solution as 

well as recycling waste water. 

Reduced Custodial Contract -$1,000,000 / 

 +0 FTE 

BEP will reduce custodial service from 5 to 3 

days a week at both facilities. 

Offer Voluntary LWOP Thanksgiving Week 

 -$250,000 / +0 FTE

Leave without pay will be offered during this 

timeframe which normally has a high demand 

for annual leave. 

Program Decreases 

Estimated Changes in Currency 

Manufacturing Program in FY 2015 

-$11,500,000 / +0 FTE 

BEP formulates its budget request based on an 

estimated order. BEP receives a finalized 

Federal Reserve note print order which may 

differ from the estimated order due to the 

uncertainty of international markets. BEP's 

original FY 2014 budget request was based on 

an 8 billion note program, however, the 

Federal Reserve Board currency order for 

2014 increased from the original 8 billion note 

volume to a revised 8.3 billion note program 

due to an increase in the demand for U.S. 

currency. 

Program Increases 

Warehouse Center for Excellence 

+$2,000,000 / +0 FTE 

BEP requests funding for loading dock 

improvements and purchase of equipment to 

support its core mission. The Warehouse 

Center for Excellence program subleases BEP 

warehouse storage space to DO, IRS, FS and 

OCC to create Treasury-wide savings; tenants 

will also benefit from proposed facility 

improvements. 

Currency Reader Loaner Program 

+$26,125,000 / +0 FTE 

During 2015 BEP will continue to work with 

the Library of Congress to distribute electronic 

readers to the blind and visually impaired. It is 

estimated that 300,000 readers will be 

distributed in FY 2015. 

Department of the Treasury - Budget in Brief 96
Direct Labor for Additional Production 

Processes +$2,125,000 / +27 FTE 

The Advanced Counterfeit Deterrence Steering 

Committee (Treasury, BEP, Federal Reserve, 

and US Secret Service) has decided that new 

overt and covert security features are required 

for the next redesigned note to maintain the 

security of US currency. In addition, it must 

be designed to provide meaningful access to 

US currency for the blind and visually 

impaired to comply with a District Court 

ruling. The Secretary of the Treasury has 

approved the addition of a tactile feature, as 

well as other actions to provide meaningful 

access. The application of a tactile feature will 

require an additional production step. 

Explanation of Budget Activities 

Manufacturing ($748,592,000 from 

revenue/offsetting collections) 

The BEP has one budget activity: 

Manufacturing. This budget activity supports 

all of BEP’s strategic goals. The goal owner 

for the Manufacturing budget activity is BEP’s 

Deputy Director Leonard Olijar. 

Legislative Proposals 

BEP has no legislative proposals. 

BEP Performance by Budget Activity

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Manufacturing Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced) ($) 

34.6 43.34 50.45 55.0 54.0

Key: DISC - Discontinued and B - Baseline

Description of Performance 

Manufacturing Costs for Currency (dollar cost 

per 1,000 notes produced) is an indicator of 

manufacturing efficiency and effectiveness of 

program management. This measure is based 

on contracted price factors and anticipated 

productivity improvements, as well as the mix 

of denominations ordered year to year. As 

more sophisticated counterfeit deterrent design 

features are produced, paper and ink costs 

increase, resulting in increased total 

manufacturing costs. Actual performance 

against standard cost depends on BEP’s ability 

to meet annual spoilage, efficiency, and 

capacity utilization goals. In order to meet this 

measure, costs and other standard 

manufacturing performance metrics are 

tracked at each stage of production and 

corrections are made on the shop floor. In 

addition, production and quality metrics are 

discussed on a monthly basis at the executive 

level and corrective action plans are 

developed. The manufacturing cost of 

currency metric has performed at or better than 

its annual targets for the past eight years. In 

FY 2013 the cost of manufacturing was lower 

than anticipated, as the actual result realized 

for this measure was $50.45 per 1,000 notes 

produced against a target of $55.00. The 

performance goals for both FY 2014 and FY 

2015 reflect the continued increased 

production of high cost redesigned $100 notes 

as a proportion of the total annual order, and 

are set at $55.00 in both 2014 and 2015. 

Percent of currency notes returned due to 

defects is an indicator of the Bureau’s ability 

to provide a quality product. All notes 

delivered to the Federal Reserve go through 

rigorous quality inspections during the 

manufacturing process. In addition, notes are 

inspected a final time using the same 

inspection systems used at the Federal Reserve 

Banks. These inspections ensure that all 

counterfeit deterrent features, both overt and 

covert, are functioning as designed. BEP’s FY 

Department of the Treasury - Budget in Brief 97
2013 target for this performance metric was 

.0001 percent; however, BEP was unable to 

meet the target in FY 2013 as a production 

error in the NexGen $100 note caused greater 

than $30 million of these notes to be returned 

by the Federal Reserve. For FY 2014 and FY 

2015 BEP’s target for this performance metric 

will be held constant at .0001 percent. 

BEP’s Best Places to Work in Federal 

Government Ranking is a based on the results 

of the Partnership for Public Service data on 

three questions in the Federal Employee 

Viewpoint Survey. This survey is sent 

annually to all Federal employees seeking their 

opinion on their organization’s leadership and 

programs relating to fairness, employee 

empowerment and recognition. In 2013 BEP’s 

ranking improved to 47 out of 300. The 

Bureau continues to sponsor activities and 

encourage employee engagement by 

contributing ideas and participation in events 

which are aimed at improving and maintaining 

the work environment for all employees. The 

Bureau will continue these efforts and is 

confident that this positive direction will 

continue. BEP will continue to target 

improvement in rank and maintaining our spot 

in the top 100. 

Reduction in Regulated Waste (Millions of 

pounds of regulated air emissions, wastewater, 

and solid waste combined) is a quantitative 

indicator of the effectiveness of BEP 

environmental programs, which are assessed 

through the BEP ISO 14001 certified 

Environmental Management System (EMS). 

This reflects the maturation of the EMS as 

well as the Bureau’s commitment to 

continually improve its Environmental Health 

and Safety (EHS) performance, as both of the 

Bureau’s two manufacturing facilities received 

unconditional recertification to the ISO 14001 

standard in FY 2012. BEP’s FY 2013 

performance of 31.2 million pounds of 

regulated waste for this metric was against a 

target of 32 pounds per 1000 notes delivered. 

Lost Time Accident Rate per 100 Employees 

measures the Bureau’s ability to reduce 

injuries and illnesses in the workplace. BEP’s 

key performance indicator is the annual 

Occupational Safety and Health 

Administration’s (OSHA) reportable lost time 

case rate and number of lost workdays. In 

2013 BEP’s lost time case rate during the 

fiscal year was 1.63 against a target of 1.6 

cases per 100 employees The Bureau remains 

committed to improving the safety of its 

employees and has undertaken analysis to 

determine the root causes of injury and to 

identify best practices in safety. BEP will 

continue to allocate resources to have the 

greatest impact on preventing future injuries. 

BEP’s target for this performance metric will 

be held constant at 1.6 per 100 employees for 

FY 2014 and FY 2015. 

Department of the Treasury - Budget in Brief 98
United States Mint 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $4,158,603 $3,891,773 $3,571,451 ($320,322) -8.23%

Total Cost of Operations $4,158,603 $3,891,773 $3,571,451 ($320,322) -8.23%

FTE 1,705 1,874 1,874 0 0.00%

Summary 

The Mint supports the Department of the 

Treasury’s strategic goals to promote domestic 

economic growth and stability and create a 21st

century approach to government by improving 

efficiency, effectiveness, and customer 

interaction. 

Since FY 1996, the United States Mint has 

been operating under the United States Mint’s 

Public Enterprise Fund (PEF). As authorized 

by Public Law 104-52 (31 U.S.C. § 5136), the 

PEF eliminates the need for annual 

appropriations. Proceeds from the sales of 

circulating coins to the Federal Reserve Banks 

and numismatic items to the public are the 

source of funding for operations. Both 

operating expenses and capital investments are 

associated with the production of circulating 

and numismatic coins and coin-related 

products. Collections in excess of amounts 

required by the PEF are transferred to the 

United States Treasury General Fund. 

The United States Mint’s key priorities for 

FY 2015 include: 

 Circulating - Efficiently and effectively 

mint and issue approximately 10.6 billion 

circulating coins in FY 2015 to meet the 

needs of commerce. 

 Numismatic Program 

Bullion Products – Mint and issue bullion 

coins to meet customer demand efficiently 

and effectively. 

Other Numismatic Products - Produce and 

distribute numismatic products in 

sufficient quantities, through appropriate 

channels, to make them accessible, 

available, and affordable to people who 

choose to purchase them. Design, strike, 

and prepare for presentation Congressional 

Gold Medals. 

 Protection - Secure the Nation’s gold 

reserves, silver reserves and other assets. 

In FY 2015, the US Mint will assess the future 

of currency as it relates to coinage, including 

the penny. The production and circulation of 

currency in the United States have been 

largely unchanged for decades, despite the 

growth in electronic financial 

transactions. Treasury is undertaking a 

comprehensive review of U.S. currency, 

including a review of both the production and 

use of coins, in order to efficiently promote 

commerce in the 21st century. These studies 

will analyze alternative metals, Mint facilities, 

and consumer behavior and preferences, and 

will result in the development of alternative 

options for the penny and the nickel. 

FY 2015 United States Mint estimated total 

revenues are $3,787,513,000, total expenses 

are $3,571,451,000, of which $30,468,000 are 

for capital investments, and net results are 

$216,062,000 in earnings. 

Department of the Treasury - Budget in Brief 99
US Mint FY 2015 Budget Highlights

Dollars in Thousands

United States Mint FTE Materials Operating & 

Capital Total

FY 2014 Estimated 1,874 $3,414,900 $476,873 $3,891,773

Changes to Base:

Maintaining Current Levels (MCLs): - - $8,078 $8,078

Pay-Raise - - $2,343 $2,343

FERS Contribution Increase - - $2,220 $2,220

Non-Pay - - $3,515 $3,515

Non-Recurring Costs: - - ($63,000) ($63,000)

Mint Organizational Facilities Study - - ($1,000) ($1,000)

OMS II Investment (Prior Year Element) - - ($60,000) ($60,000)

Public Coin Usage Study - - ($1,000) ($1,000)

R&D Reduced Requirements - - ($1,000) ($1,000)

Efficiency Savings: - - ($4,800) ($4,800)

OMS II Savings - - ($4,800) ($4,800)

Subtotal Changes to Base - - ($59,722) ($59,722)

Total FY 2015 Base 1,874 $3,414,900 $417,151 $3,832,051

Program Changes:

Program Decreases: - ($264,100) - ($264,100)

Forecast Reduction in Required Purchase of Metal

Raw Materials - ($264,100) - ($264,100)

Program Increases: - $3,500 - $3,500

Metal Due to Forecast Increase in Circulating Coin

Production - $3,500 - $3,500

Total FY 2015 Estimated 1,874 $3,154,300 $417,151 $3,571,451

FY 2015 Budget Adjustments 

Maintaining Current Level (MCLs) 

Pay-Raise +$2,343,000 / +0 FTE 

Funds are required for the proposed January 

2015 pay- raise and one quarter of the 2014 

pay-raise. 

FERS Contribution Increase +$2,220,000 / 

+0 FTE

Funds are required for increases in agency 

contributions to the Federal Employee 

Retirement System based on actuarial 

estimates. 

Non-Pay +$3,515,000 / +0 FTE 

Funds are required for non-labor costs such as 

travel, contracts, rent, supplies, and equipment. 

Non-Recurring Costs 

Mint Organizational Facilities Study 

-$1,000,000 / +0 FTE 

The Mint will execute an independent study to 

evaluate its optimal organization and facility 

structure. The study will be completed in FY 

2014. No FY 2015 funding is required for the 

non-recurring item. 

OMS II Investment (Prior Year Element) 

-$60,000,000 / +0 FTE 

The Mint is replacing an obsolete, at-risk order 

management system with an improved order 

management system that has increased 

functionality, efficiency, and customer service 

capabilities. Investment in the order 

management system is accomplished in 

FY 2014 and is a one-time cost with only 

operating and maintenance costs in the outyears, which are absorbed in the Mint’s annual 

budgets. As a result, the investment amount is 

reduced from the Mint’s budget base in 

FY 2015. 

Public Coin Usage Study -$1,000,000 / 

+0 FTE

The Mint will perform a study on the public’s 

use of coins and its impact on the Mint’s longterm strategy. The study will be concluded in 

Department of the Treasury - Budget in Brief 100
FY 2014. As such, there will not be a need to 

renew the funding for studies in FY 2015. 

R&D Reduced Requirements -$1,000,000 / 

+0 FTE

The Mint anticipates reduced R&D 

expenditures in FY 2015. The R&D center 

will be established and recommendations for 

the next generation of circulating coinage will 

have been developed. 

Efficiency Savings 

OMS II Savings -$4,800,000 / +0 FTE 

Implementation of the new order management 

system is projected to reduce costs for the 

Mint and provide customers with an 

experience that keeps pace with advancements 

in both technology and functionality in the 

retail industry. Lower operational and 

maintenance costs are expected to result in 

savings from this system implementation. 

Program Decrease 

Forecast Reduction in Required Purchase of 

Metal Raw Materials -$264,100,000 / +0 FTE 

The overall numismatic program, including 

bullion coin programs, experienced increases 

in sales in FYs 2013 and FY 2014. Sales 

projections for the bullion program are 

expected to decline slightly in FY 2015. As a 

result, metal purchases for bullion coinage 

production are projected to be lower in 

FY 2015 compared to FY 2014. 

Program Increases 

Metal labor overhead from increased forecast 

in circulating coin in 2014 +$3,500,000 / 

+0 FTE

The Mint forecasts that demand for circulating 

coins will continue to increase in FY 2015. In 

FY 2014 and 2015, the Mint forecasts coin 

demand to increase to 10.6 billion coins 

annually. To meet the growth in demand, the 

Mint will need a $3.5 million increase for 

metal purchases. 

Explanation of Budget Activities 

Manufacturing ($3,571,451,000 from 

revenue/offsetting collections) 

The Mint has one budget activity: 

manufacturing. This budget activity 

encompasses the bureau’s two major 

programs: circulating coinage and numismatic 

coin products including bullion coins and 

national medals. The owner of the 

manufacturing budget activity is the Mint’s 

Deputy Director, Richard A. Peterson. 

Circulating Coinage Program 

Circulating coinage includes the penny, nickel, 

dime, and quarter-dollar coins. 

The United States Mint delivers circulating 

coinage to the Federal Reserve Banks at face 

value for subsequent distribution to the 

commercial banking system as required to 

transact commerce. 

The Mint will continue to mint and issue 

quarter-dollar coins honoring America’s 

national parks and other national sites in 

accordance with the America’s Beautiful 

National Parks Quarter Dollar Coin Act of 

2008 (Public Law 110-456). In 2014, the Mint 

will release quarters honoring Great Smoky 

Mountains National Park (Tennessee), 

Shenandoah National Park (Virginia), Arches 

National Park (Utah), Great Sand Dunes 

National Park (Colorado), and Everglades 

National Park (Florida). In 2015, the Mint will 

release quarters honoring Homestead National 

Monument of America (Nebraska), Kisatchie 

National Forest (Louisiana), Blue Ridge 

Parkway (North Carolina), Bombay Hook 

National Wildlife Refuge (Delaware), and 

Saratoga National Historical Park (New York). 

Numismatic Program 

Bullion Coin Program 

The United States Mint produces bullion coins 

under American Eagle, American Buffalo, and 

America the Beautiful Silver Bullion Coin 

Department of the Treasury - Budget in Brief 101
Programs to fulfill investor demand. Bullion 

coins are largely bought by precious metal 

dealers and sold to consumers who desire 

precious metals as part of an investment 

portfolio. The demand for bullion coins is 

greatly influenced by the performance of other 

investment options, such as equities markets or 

currency markets, and therefore is highly 

unpredictable. The content and purity of the 

precious metal in the bullion coins are backed 

by the United States Government. 

 

Other Numismatic Products 

The United States Mint produces and 

distributes numismatic products, including 

proof and uncirculated versions of coins, 

directly to the public. For some numismatic 

products, authorizing legislation specifies 

program requirements, such as design theme, 

mintage level and duration of product 

availability. Other programs are structured by 

law to grant the Secretary of the Treasury 

discretion in determining product 

specifications. The Numismatic Program 

includes the American Eagle Program, the 

American Buffalo Program, the America the 

Beautiful Quarters Program, the Presidential 

and Native American $1 Coin Programs, 

recurring programs, and commemorative coins 

and medals. 

The Mint will continue to mint and issue 

numismatic versions of $1 coins honoring the 

Nation’s past Presidents in accordance with 

the Presidential $1 Coin Act of 2005 (Public 

Law 109-145). In 2014, the Mint will release 

Presidential $1 Coins honoring Presidents 

Warren G. Harding, Calvin Coolidge, Herbert 

Hoover, and Franklin D. Roosevelt. The Mint 

will release in 2015 Presidential $1 Coins 

honoring Presidents Harry S. Truman, Dwight 

D. Eisenhower, John F. Kennedy, and Lyndon 

B. Johnson. The Mint will also continue to 

mint and issue $1 coins celebrating the 

important contributions made by Indian tribes 

and individual Native Americans to the 

development and history of the United States 

in accordance with the Native American $1 

Coin Act (Public Law 110-82). 

Commemorative coins are authorized by law 

to recognize and honor people, places, events, 

institutions, and other subjects of historic or 

national significance. Each coin is minted and 

issued by the Mint in a limited quantity and is 

available only for a limited time. Included in 

the price is a surcharge that is authorized to be 

paid to the designated recipient organizations, 

assuming all legal requirements have been 

met. Recipient organizations must use the 

proceeds for the purposes specified in the 

enabling legislation 

In FY 2015, the United States Mint’s total 

estimated budgetary requirements for 

operating, metal, and capital investments are 

$3,571 million. 

Legislative Proposals 

Silver Proof Set Coin Composition 

As previously included in the Mint’s FY 2014 

President’s Budget, the bureau recommends 

pursuing a change to the law such that the 

coins in silver proof sets would be required to 

be no less than 90 percent silver. Under 

current law, the half-dollar, quarter-dollar, and 

dime coins in silver proof sets “shall be made 

of an alloy of 90 percent silver and 10 percent 

copper.” Allowing the Mint to have flexibility 

in this composition improves efficiency in the 

process of manufacturing silver proof sets and 

lowers the Mint’s production costs for these 

products. This translates into savings that 

would be passed on to the customer. 

Eliminate the 20 percent requirement in the 

Native American $1 Coin Act 

This legislative proposal seeks to limit the 

requirement that the number of $1 coins 

minted and issued in a year with the 

Sacagawea design on the obverse be not less 

than 20 percent of the total number of $1 coins 

Department of the Treasury - Budget in Brief 102
minted and issued for circulation. Approval of 

this proposal would allow the Mint to mint and 

issue all $1 coins in amounts necessary to meet 

public demand for coins of each particular 

design. In December 2011, to address the 

excessive $1 coin inventories at the FRBs, the 

Secretary of the Treasury suspended the 

minting of Presidential $1 Coins for 

circulation. As a result, until the FRBs have 

drawn down these inventories, the only 

demand for new Presidential $1 Coins that the 

Mint receives is through its numismatic sales 

channels. Numismatic demand for new Native 

American $1 Coins, however, is significantly 

lower than numismatic demand for 

Presidential $1 Coins, making it impracticable 

for the Mint to comply with the 20-percent 

requirement. As a consequence, limiting the 

20 percent requirement to circulating coins is 

sensible at this time because it avoids the need 

to mint and issue Native American $1 Coins in 

excess of the amounts that numismatic 

customers demand. Applying the 20 percent 

requirement to numismatic sales will require 

the Mint to manufacture and store an excess 

supply of Native American $1 Coins, 

ultimately increasing costs to numismatic 

customers. 

US Mint Performance by Budget Activity

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Manufacturing Customer Satisfaction Index (%) 91.7 90.0 92.6 90.0 90.0

Manufacturing Numismatic Sales Units (Million 

Units)

N/A 5.6 5.51 5.4 5.6

Manufacturing Seigniorage per Dollar Issued ($) .45 .21 .24 .24 .24

Key: DISC - Discontinued and B – Baseline

Description of Performance 

Seigniorage per Dollar Issued 

Seigniorage is the financial return on 

circulated coinage shipped to the FRB and the 

public. It measures the cost-effectiveness of 

the United States’ circulating coinage. 

Seigniorage per dollar issued was $0.24 in FY 

2013, above the performance target of $0.17. 

Results exceeded the target mainly due to 

increased FRB demand; lower costs than 

forecast for metals and reduced general and 

administrative expenses. 

Customer Satisfaction Index (CSI) 

The Mint conducts a quarterly Customer 

Satisfaction Measure Tracking Survey among 

a random sample of active numismatic 

customers. The survey is intended to capture 

customer satisfaction with the United States 

Mint’s service and product quality. The CSI is 

a quantitative score of survey results. The 

United States Mint’s CSI reached 92.6 percent 

in FY 2013, above the target of 90.0 percent. 

Numismatic Sales Units 

The numismatic sales units metric indicates 

the number of coin products sold to the public 

from numismatic operations. It quantifies the 

demand for the Nation’s official numismatic 

products. Numismatic sales units totaled 5.5 

million in FY 2013, exceeding the target of 5.2 

million units. The increase mainly resulted 

from strong Presidential $1 Coin product sales 

above forecast by 23 percent; silver coin 

product sales, above forecast by 26 percent; 

and gold and platinum coin product sales, 

which were 78 percent above forecast. 

Department of the Treasury - Budget in Brief 103
Safety Incident Recordable Rate 

Safety incident recordable rate is the number 

of injuries and illnesses meeting the 

Occupational Health and Safety 

Administration recording criteria per 100 fulltime workers. The safety incident recordable 

rate was 2.9 recordable injuries and illnesses 

per 100 full-time workers in FY 2013, more 

than satisfying the 3.14 target and well below 

the industry average rate of 7.8 for forging and 

stamping manufacturers.

Department of the Treasury - Budget in Brief 104
Office of Comptroller of the Currency 

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Actual Estimated Estimated $ Change % Change

Supervise $873,942 $903,770 $949,219 $45,449 5.03%

Regulate $111,783 $115,598 $121,412 $5,814 5.03%

Charter $30,486 $31,527 $33,112 $1,585 5.03%

Total Cost of Operations $1,016,211 $1,050,895 $1,103,743 $52,848 5.03%

FTE 3,822 3,953 3,997 44 1.11%

 

Summary 

The OCC was created by Congress to charter 

national banks, oversee a nationwide system of 

banking institutions, and ensure national banks 

are safe and sound, competitive and profitable, 

and capable of serving in the best possible 

manner the banking needs of their customers. 

Pursuant to Title III of the Dodd-Frank Act, on 

July 21, 2011 the OCC assumed the 

responsibility for the supervision of federal 

savings associations and rulemaking authority 

for all federal savings associations. 

As of December 31, 2013 the OCC supervised 

1,212 national bank charters, 48 federal 

branches of foreign banks, in the United States 

with total assets of approximately $9.7 trillion, 

and 497 federal savings associations (which 

include 186 mutual institutions) with total 

assets of approximately $702 billion. The 

average size and complexity of financial 

institutions continue to grow. This creates 

increasing and diverse challenges for the OCC. 

The OCC has established four goals outlined 

in its strategic plan that help support a strong 

economy for the American public: 1) A safe 

and sound system of national banks and 

federal savings associations; 2) Fair access to 

financial services and fair treatment of national 

bank and federal savings association 

customers; 3) A flexible legal and regulatory 

framework that enables national banks and 

federal savings associations to provide a full, 

competitive array of financial services 

consistent with statutory and prudential safety 

and soundness constraints; and 4) A 

competent, highly motivated, and diverse 

workforce that makes effective use of OCC 

resources. To achieve its goals and objectives, 

the OCC organizes its activities under three 

programs: 1) Supervise, 2) Regulate, and 3) 

Charter. Effective supervision and a 

comprehensive regulatory framework are the 

key tools that the OCC uses to ensure that 

national banks and federal savings associations 

operate in a safe and sound manner and that 

they provide fair access to financial services 

and fair treatment of their customers. A robust 

chartering program allows new entrants into 

the financial services sector while ensuring 

that they have the necessary capital, 

managerial, and risk management processes to 

conduct activities in a safe and sound manner. 

The OCC’s priorities focus on strengthening 

the resiliency of the institutions subject to its 

jurisdiction through its supervisory and 

regulatory programs and activities. A stronger 

and more resilient banking system directly 

supports three out of five of the Department of 

the Treasury’s (Treasury) strategic goals: 1) 

Promote Domestic Economic Growth and 

Stability; and 4) Safeguard the Financial 

System and Use Financial Measures to 

Counter National Security Threats. 

Department of the Treasury - Budget in Brief 105
Through on-site examinations, the OCC 

assesses whether national banks and federal 

savings associations appropriately identify, 

account for, and follow prudent strategies for 

problem assets; and maintain a strong 

corporate governance culture that fosters 

sound loan underwriting standards, properly 

aligned incentive compensation structures, and 

strong internal controls, risk management, and 

compliance functions. 

The OCC continues to encourage lenders to 

work with creditworthy borrowers who may be 

facing financial difficulties. The OCC 

continues to be actively involved in the 

residential foreclosure oversight process to 

ensure that all foreclosures are handled 

consistent with regulatory requirements. 

While assessing credit quality, adequacy of 

loan loss reserves, interest rate risk and capital 

adequacy, risk management practices have 

been and continue to be areas of focus. 

Operational risk issues – the risk of loss due to 

failures of people, processes, systems, and 

external events – have become an area of 

heightened risk and supervisory attention. 

Strong enterprise risk management processes 

have been and will continue to be a point of 

emphasis, particularly at larger institutions. In 

addition, the OCC continues to assess and 

address supervisory issues in the areas of fair 

lending, consumer protection, Bank Secrecy 

Act/Anti-Money Laundering, and information 

security. 

Operations are funded primarily 

(approximately 97 percent) from semiannual 

assessments levied on national banks and 

federal savings associations. Revenue from 

investments in Treasury securities and other 

income comprise the remaining three percent 

of the OCC’s funding. 

The OCC does not receive congressional 

appropriations to fund any portion of its 

operations. 

Explanation of Budget Activities 

Supervise ($903,770,000 from 

revenue/offsetting collections) 

The Supervise program consists of ongoing 

supervision and enforcement activities 

undertaken to ensure that each national bank 

and federal savings institution is operating in a 

safe and sound manner and is complying with 

applicable laws, rules, and regulations relative 

to the financial institution and the customers 

and communities it serves. Included are 

examinations and enforcement activities; 

resolution of disputes through a formal 

appeals process; ongoing monitoring of 

national banks and federal savings 

associations; and analysis of systemic risks 

and market trends in the national banking 

system or groups of national banks, the 

financial services industry, and the economic 

and regulatory environment. 

Regulate ($115,598,000 from 

revenue/offsetting collections) 

The Regulate program consists of ongoing 

activities that result in the establishment of 

regulations, policies, operating guidance, and 

interpretations of general applicability to 

national banks and federal savings institutions. 

These regulations, policies, and interpretations 

may establish system-wide standards, define 

acceptable banking practices, provide 

guidance on risks and responsibilities facing 

national banks and federal savings institutions, 

or prohibit (or restrict) banking practices 

deemed to be imprudent or unsafe. 

This includes the establishment of examination 

policies, handbooks, and interpretations for 

examiners as well as representation of the 

OCC’s regulatory authorities and 

interpretations in administrative, judicial, and 

congressional hearings. 

Department of the Treasury - Budget in Brief 106
Charter ($31,527,000 from revenue/offsetting 

collections) 

The Charter program consists of ongoing 

activities that result in the chartering of 

national banks and federal savings institutions 

as well as the evaluation of the permissibility 

of structures and activities of banks, thrifts, 

and their subsidiaries. This includes the 

review and approval of new national bank and 

thrift charters, federal branches and agencies, 

mergers, acquisitions, conversions, business 

combinations, corporate reorganizations, 

changes in control, operating subsidiaries, 

branches, relocations, and subordinated debt 

issues. 

Legislative Proposals 

OCC has no legislative proposals. 

OCC Performance by Budget Activity

Budget Activity Performance Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Target Target

Supervise Percent of National Banks and 

Federal Savings Associations with 

Composite CAMELS Rating 1 or 2

N/A 76.0 80.0 90.0 90.0

Supervise Percentage of National Banks and 

Federal Savings Associations 

That Are Categorized As Well 

Capitalized 

N/A 92.0 94.0 95.0 95.0

Supervise Percentage of National Banks and 

Federal Savings Associations 

With Consumer Compliance 

Rating of 1 or 2

N/A 93.0 94.0 94.0 94.0

Supervise Rehabilitated National Banks And 

Federal Savings Associations As 

A Percentage Of Problem National 

Banks One Year Ago (CAMEL 

3,4, or 5)

22.0 27.0 34.0 40.0 40.0

Supervise Total OCC Costs Relative To 

Every $100,000 in Bank And 

Federal Savings Associations 

Assets Regulated ($)

N/A 10.51 9.99 10.22 9.22

Charter Percentage of Licensing 

Applications and Notices 

Completed within Established 

Timeframes

97.0 98.0 97.0 95.0 95.0

Key: DISC - Discontinued and B - Baseline

Department of the Treasury - Budget in Brief 107
Description of Performance 

The OCC’s Supervision Program specifically 

supports the following Treasury Objectives: 

1.3: Complete implementation of financial 

regulatory reform initiatives and continue 

monitoring the markets for threats to stability;

1.4: Facilitate commerce by providing trusted 

U.S. currency, services, and products for the 

American public and enterprises;

4.3: Improve the cybersecurity of our Nation’s 

financial sector critical infrastructure; and

4.4: Protect the integrity of the financial 

system by implementing, promoting, and 

enforcing anti-money laundering and 

counterterrorism financing standards.

 

The OCC charters, regulates and supervises all 

national banks and federal savings 

associations, as well as supervises federal 

branches and agencies of foreign banks. The 

primary goal of the OCC’s Supervision 

Program is to ensure that these institutions 

operate in a safe and sound manner and in 

compliance with laws requiring fair treatment 

of their customers and fair access to credit and 

financial products. The OCC’s Supervision 

Program supports the implementation of the 

financial regulatory reform initiatives 

including those in the Dodd-Frank Wall Street 

Reform and Consumer Protection Act as well 

as other regulatory initiatives designed to 

strengthen the nation’s federal banking 

system. The OCC also monitors risks and 

threats to the stability of the federal banking 

system through its regular examinations of the 

institutions it supervises and other monitoring 

programs such as its Semi-annual Risk 

Perspectives Report, participation in the 

Shared National Credit Program, and its Credit 

Underwriting Survey. 

The overall objective of the OCC’s 

Supervision Program supports facilitating 

commerce through the goal of ensuring the 

safety and soundness of the federal banking 

system. Through its Supervision Program the 

OCC has taken a number of steps to improve 

the cybersecurity of the nation’s financial 

sector critical infrastructure including 

organizing a Web conference, “The Evolving 

Cyber Landscape: Awareness, Preparedness, 

and Strategy for Community Banks,” for more 

than 1,000 community bankers and holding a 

series of confidential briefings for banks, 

third-party service providers and bank 

examiners. The agency also created and filled 

a new position, Senior Infrastructure Officer 

whose focus is cybersecurity policy for the 

federal banking system. Actions taken to 

improve the cybersecurity of the federal 

banking system include the issuance of an alert 

on denial-of-service attacks, and reviews of 

examiner handbooks, procedures, and training 

materials to ensure that, as threats evolve, all 

national banks and federal savings associations 

can identify cyber risks and strengthen their 

risk management and control systems. In 

addition, the OCC became a member of the 

Financial Services Information Sharing and 

Analysis Center in 2013. Membership gives 

the OCC greater real-time insight into a broad 

range of potential threats to the industry and 

the ability to assist, when appropriate, in a 

coordinated response with other government 

agencies. Finally, the OCC supports 

protecting the integrity of the financial system 

through its examinations of compliance with 

BSA/AML and through the initiation of 

enforcement actions for non-compliance with 

BSA/AML laws and regulations. 

The Federal Deposit Insurance Act established 

a system that classifies insured depository 

institutions into five categories (wellcapitalized, adequately capitalized, 

undercapitalized, significantly 

undercapitalized, and critically 

undercapitalized) based on their capital levels 

relative to their risks. Through September 30, 

2013, 94 percent of national banks and federal 

savings associations were classified as well 

capitalized. The composite CAMELS (Capital 

Department of the Treasury - Budget in Brief 108
adequacy, Asset quality, Management, 

Earnings, Liquidity, and Sensitivity to market 

risk) rating reflects the overall condition of a 

bank. Bank regulatory agencies use the 

Uniform Financial Institutions Rating System, 

CAMELS, to provide a general framework for 

evaluating all significant financial, operational, 

and compliance factors inherent in a bank. 

The rating scale is 1 through 5 of which 1 is 

the highest rating granted. CAMELS ratings 

are assigned at the completion of every 

supervisory cycle or when there is a significant 

event leading to a change in CAMELS. 

Through September 30, 2013, 80 percent of 

national banks and federal savings associations 

earned composite CAMELS rating of either 1 

or 2. 

Problem banks ultimately can reach a point at 

which rehabilitation is no longer feasible. The 

OCC’s early identification and intervention 

with problem banks can lead to successful 

remediation of these banks. The OCC 

recommends corrective actions to problem 

banks for improving their operations and, as a 

result, 23 percent of banks with composite 

CAMELS ratings of 3, 4, or 5 one year ago 

have improved their ratings to either 1 or 2 this 

year. As with other measures, this target 

benchmark has been adversely affected by the 

underlying economic conditions facing the 

banking industry. 

To ensure fair access to financial services and 

fair treatment of bank customers, the OCC 

evaluates a bank’s compliance with consumer 

laws and regulations. Bank regulatory 

agencies use the Uniform Financial 

Institutions Rating System, Interagency 

Consumer Compliance Rating, to provide a 

general framework for assimilating and 

evaluating significant consumer compliance 

factors inherent in a bank. Each financial 

institution is assigned a consumer compliance 

rating based on an evaluation of its present 

compliance with consumer protection and civil 

rights statutes and regulations, and the 

adequacy of its operating systems designed to 

ensure continuing compliance. Ratings are on 

a scale of 1 through 5 in increasing order of 

supervisory concern. National banks and 

federal savings associations continue to show 

strong compliance with consumer protection 

regulations with 94 percent earning a 

consumer compliance rating of either 1 or 2 

through September 30, 2013. 

The OCC’s timely and effective approval of 

corporate applications contributes to the 

nation’s economy by enabling national banks 

and federal savings associations to complete 

various corporate transactions and introduce 

new financial products and services. Delays in 

providing prompt decisions on applications 

and notices can deprive a bank of a 

competitive or business opportunity, create 

business uncertainties, or diminish financial 

results. Time frames have been established for 

completing each type of application and 

notice. The OCC completed 97 percent of 

applications and notices within the time 

standard through September 30, 2013. 

The OCC monitors the efficient use of its 

resources by measuring Total OCC Costs 

Relative to Every $100,000 in Bank Assets 

Regulated. This measure reflects the 

efficiency of its operations while meeting the 

increasing supervisory demands of a growing 

and more complex financial system. This 

measure supports the OCC’s strategic goal of 

efficient use of agency resources. The OCC’s 

ability to control its costs while ensuring the 

safety and soundness of national banks and 

federal savings associations benefits all 

national bank and federal savings association 

customers. The OCC will continue its efforts 

to ensure that resources are used prudently and 

that programs are carried out in a cost effective 

manner. 

Department of the Treasury - Budget in Brief 109
Department of the Treasury - Budget in Brief 110
Treasury International Programs 

Program Summary 

Dollars in Thousands 

 FY 2013 FY 2014 FY 2015 FY 2014 TO FY 2015

Budget Activity Operating 

Level Enacted Request $ Change % Change

Economic Growth, National Security and Poverty

Reduction (MDBs) $2,044,409 $2,075,449 $2,042,105 ($33,344) -1.61%

International Development Association (IDA) $1,351,018 $1,355,000 $1,290,600 ($64,400) -4.75%

International Bank for Reconstruction and Development

(IBRD) $180,993 $186,957 $192,921 $5,964 3.19%

Inter-American Development Bank (IDB and FSO) $107,110 $102,000 $102,020 $20 0.02%

Multilateral Investment Fund (MIF) $14,995 $6,298 $0 ($6,298) -100.00%

Asian Development Bank (AsDB) $101,190 $106,586 $112,195 $5,609 5.26%

Asian Development Fund (AsDF) $94,937 $109,854 $115,250 $5,396 4.91%

African Development Bank (AfDB) $30,717 $32,418 $34,119 $1,701 5.25%

African Development Fund (AfDF) $163,449 $176,336 $195,000 $18,664 10.58%

Food Security $156,647 $163,000 $30,000 ($133,000) -81.60%

Global Agriculture and Food Security Program (GAFSP) $128,165 $133,000 $0 ($133,000) -100.00%

International Fund for Agricultural Development (IFAD) $28,482 $30,000 $30,000 $0 0.00%

World Bank Environmental Trust Funds $347,497 $428,280 $401,000 ($27,280) -6.37%

Clean Technology Fund (CTF) $175,283 $184,630 $201,253 $16,623 9.00%

Strategic Climate Funds (SCF) $47,374 $49,900 $63,184 $13,284 26.62%

ESF Statutory Transfer $0 $50,000 $0 ($50,000) -100.00%

Global Environment Facility (GEF) $124,840 $143,750 $136,563 ($7,187) -5.00%

Debt Relief $11,392 $0 $92,400 $92,400 NA

Multilateral Debt Relief Initiative (MDRI) for AfDF $0 $0 $13,500 $13,500 NA

MDRI for IDA $0 $0 $78,900 $78,900 NA

Tropical Forest Conservation Act (TFCA) $11,392 $0 $0 $0 NA

Treasury Office of Technical Assistance $25,634 $23,500 $23,500 $0 0.00%

Middle East Transition Fund $0 $0 $5,000 $5,000 NA

International Monetary Fund (IMF) $0 $0 $16,000 $16,000 NA

Total $2,585,579 $2,690,229 $2,610,005 ($80,224) -2.98%

Department of the Treasury - Budget in Brief 111
Summary 

Economic Growth, National Security and 

Poverty Reduction: Multilateral 

Development Banks 

The FY 2015 request for the multilateral 

development banks (MDBs) is comprised of 

existing, previously authorized annual 

commitments as well as renewed pledges. The 

request for existing commitments includes the 

ongoing capital increases at the International 

Bank for Reconstruction and Development 

(IBRD), the Inter-American Development 

Bank (IDB), the African Development Bank 

(AfDB), and the Asian Development Bank 

(AsDB). Investments in these multilateral 

institutions remain a cost-effective way to 

promote U.S. national security, support broadbased and sustainable economic growth, and 

address key global challenges like 

environmental degradation, while fostering 

private sector development and 

entrepreneurship. 

In addition to requesting funding for the 

annual commitment for each respective capital 

increase, Treasury is also requesting funding 

to address shortfalls caused by sequestration 

that would jeopardize U.S. shareholding and 

leadership at the MDBs. Addressing these 

shortfalls is necessary to ensure that the United 

States does not forfeit its leadership position at 

any of these institutions—a position that has 

greatly benefited both the MDBs and U.S. 

taxpayers for more than 60 years. 

The FY 2015 request also includes funding for 

the concessional windows at the MDBs that 

provide grants and low-cost financing to the 

world’s poorest countries. MDB concessional 

facilities are an important source of financing 

for the development needs of fragile and postconflict states. The projects they support 

combat extreme hunger and poverty while 

promoting global stability, prosperity, and 

private sector growth. To continue the 

longstanding history of U.S. support for the 

MDBs, the FY 2015 request includes funding 

and authorization requests for the first of three 

installments to the seventeenth replenishment 

of the International Development Association 

(IDA) and the thirteenth replenishment of the 

African Development Fund (AfDF). In 

addition, Treasury is requesting funding for 

the U.S. commitment to the tenth 

replenishment of the Asian Development Fund 

(AsDF) and to meet a portion of U.S. unmet 

commitments to the institution, which 

currently total over $346 million. 

Food Security 

In addition to our core request, we are seeking 

$80 million for a contribution to the Global 

Agriculture and Food Security Program 

(GAFSP) as a part of the President’s 

Opportunity, Growth, and Security Initiative . 

GAFSP continues to make major strides 

toward improving agricultural outcomes in 

countries seeking to reduce food insecurity. In 

25 countries, more than twelve million 

smallholder farmers and their families are 

expected to see significant increases in 

productivity on a per hectare basis with 

corresponding income gains. GAFSP is 

responsive to country needs and is aligned 

with each country’s own homegrown 

strategies. It fosters cooperation among 

donors and allocates resources based on 

projected results. 

The food security budget also includes $30 

million for the third of three installments for 

the ninth replenishment of the International 

Fund for Agricultural Development (IFAD), 

the only global development finance 

institution solely dedicated to improving food 

security for the rural poor. 

Environment and Clean Energy 

Funding for multilateral environment 

programs helps to spur direct action and 

investment by developing countries to reduce 

Department of the Treasury - Budget in Brief 112
their own pollution sources and advance 

ongoing global efforts. These global actions 

mitigate threats to our domestic environment 

that increasingly originate from beyond our 

own borders, enhancing our national security, 

and providing opportunities for U.S. 

businesses, especially in clean energy and 

other environmental technologies. 

The FY 2015 request includes $264 million for 

the Clean Technology Fund (CTF), and three 

programs supported by the Strategic Climate 

Fund (SCF): the Pilot Program for Climate 

Resilience (PPCR), the Forest Investment 

Program (FIP), and the Program for Scaling up 

Renewable Energy in Low-Income Countries 

(SREP). These programs finance investments 

in other countries in clean energy, energy 

efficiency, and forest conservation, and in 

improving resilience to climate change 

impacts, such as drought. 

The FY 2015 request also includes up to $137 

million for the first installment of the sixth 

replenishment of the Global Environment 

Facility (GEF). The GEF replenishment 

negotiations are currently underway and 

expected to be completed in March 2014. 

Treasury will consult with Congress before 

finalizing the U.S. pledge to the new 

replenishment. 

Debt Relief 

The FY 2015 request includes $92 million to 

meet a portion of the U.S. commitment to the 

Multilateral Debt Relief Initiative (MDRI) at 

IDA and the AfDF. MDRI, together with 

associated debt relief efforts, reduced the debt 

burden for participating countries by about 90 

percent as compared to their debt levels prior 

to entering the debt relief process. As a result, 

these countries have been able to increase 

poverty-reducing expenditures by an average 

of more than three percentage points of GDP 

over the past ten years. 

In addition, the Budget includes transfer 

authority to allocate funding for bilateral debt 

relief under the Heavily Indebted Poor 

Countries (HIPC) Initiative for Sudan, should 

they meet the requirements to qualify. 

Treasury Technical Assistance 

The FY 2015 request includes $24 million for 

Treasury’s Office of Technical Assistance 

(OTA). This small program achieves big 

objectives as it fosters economic growth by 

enabling governments in fragile and 

developing countries to provide better services 

for their citizens and reduce dependency on 

foreign aid. For over 20 years, OTA has 

helped developing countries build effective 

financial management systems—a core 

element of a well-functioning state. These 

financial management systems include 

efficient revenue collection, well-planned and 

executed budgets, judicious debt management, 

sound banking systems, and strong controls to 

combat corruption and other economic crimes. 

The program provides significant, costeffective value for U.S. development, foreign 

policy, and national security objectives. 

Middle East and North Africa Transition 

Fund 

The FY 2015 request includes $5 million for 

the Middle East and North Africa Transition 

Fund, a multi-donor trust fund administered by 

the World Bank and created under the U.S. 

chairmanship of the Group of 8 to assist 

countries that are members of the Deauville 

Partnership with Arab Countries in Transition 

(currently Egypt, Tunisia, Jordan, Morocco, 

Libya, and Yemen). The fund provides quick 

dispensation for small grants to help countries 

put in place economic policies and government 

reforms that will allow the countries to attract 

greater flows of capital as they address diverse 

economic challenges during their political 

transitions. A wide range of countries, 

including the United Kingdom, Saudi Arabia, 

Canada, France, Japan, Russia, Kuwait, and 

Department of the Treasury - Budget in Brief 113
Qatar, have already provided or committed to 

provide funding. 

International Monetary Fund 

Treasury is seeking appropriations and 

authorization language within the FY 2015 

request for the International Monetary Fund 

(IMF). In 2010, G-20 Leaders and the IMF 

membership decided on a set of quota and 

governance reforms designed to strengthen the 

IMF’s critical role within the international 

system. The 2010 reforms are an important 

step in modernizing IMF governance to better 

reflect countries’ economic weights in the 

global economy, while preserving U.S. 

leadership and veto power. 

The proposed appropriations and authorization 

language would reduce U.S. participation in 

the IMF’s New Arrangements to Borrow 

(NAB) by approximately $63 billion and 

increase the U.S. quota by an equal amount, 

for no net change in the overall U.S. financial 

commitment to the IMF. The proposal also 

authorizes the United States to accept an 

amendment to the IMF Articles of Agreement 

that will facilitate changes in the composition 

of the IMF Executive Board while preserving 

U.S. influence in the Board. 

Completing the IMF reforms is a national 

security and economic policy priority for the 

United States. The Administration is 

proposing a discretionary funding approach, 

but we are willing to work with Congress on 

other approaches to get legislation passed as 

soon as possible, including mandatory funding 

approaches. 

Description of Performance 

Strengthening transparency and ensuring 

accountability are critical objectives of the 

United States’ continued support for the 

MDBs and other International Programs, and 

Treasury is tightly focused on these criteria. 

That is why Treasury actively seeks clear and 

consistent accountability standards and 

measures, and promotes policies that direct 

funds to what has been proven to work and 

away from what cannot be measured. 

Performance, transparency, monitoring and 

results are at the heart of all of these efforts. 

As a result of U.S. leadership in these areas, 

the MDBs have adopted expansive disclosure 

requirements, stronger auditing functions, 

better internal controls and are at the leading 

edge of impact evaluations and performancedriven investment. Treasury has also 

succeeded in fostering cutting-edge systems 

for measuring, monitoring, and incorporating 

development results in MDB operations, and 

persuading the MDBs to adopt mechanisms 

under which donor funds are distributed on the 

basis of performance. In this way, the MDBs 

provide strong incentives to recipient countries 

to fulfill their obligations, greatly improving 

prospects for success, and strengthening 

economic growth and development. 

Treasury also pursues these same standards in 

the Technical Assistance programs, and across 

the other important International Programs 

managed by the Department. 

Department of the Treasury - Budget in Brief 114
Summary of FY 2015 Appropriations Language

Below is a summary of proposed Treasury 

appropriations language changes from the FY 

2014 enacted bill. Please note that brackets 

indicate which material will be deleted, and 

italics indicate which material will be inserted. 

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 Annex; 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[, including for]; terrorism and 

financial intelligence activities; executive 

direction program activities; international 

affairs and economic policy activities; 

domestic finance and tax policy activities; and 

Treasury-wide management policies and 

programs activities, [$312,400,000] 

$308,734,000: Provided, That, of the amount 

appropriated under this heading—(1) the 

following amounts shall be available as 

provided: [(A) $102,000,000 for the Office of 

Terrorism and Financial Intelligence, of which 

not to exceed $26,000,000 is available for 

administrative expenses;] ([B] A) not to 

exceed $350,000 for official reception and 

representation expenses; ([C] B) not to exceed 

$258,000 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 ([D] C) 

notwithstanding any other provision of law, up 

to $1,000,000 may be contributed to the 

Organization for Economic Cooperation and 

Development for the Department's 

participation in programs related to global tax 

administration; (2) [$19,187,000] up to 

$12,000,000 shall remain available until 

September 30, [2015, of which $8,287,000 is 

available] 2016 for the Treasury-wide 

Financial Statement Audit and Internal 

Control Program; [$3,000,000 is for] 

information technology modernization 

requirements; [$500,000 is for] and secure 

space requirements; [and $7,400,000 is for 

audit, oversight, and administration of the 

Gulf Coast Restoration Trust Fund;] and (3) 

up to $3,400,000 shall remain available until 

September 30, [2016] 2017, to develop and 

implement programs within the Office of 

Critical Infrastructure Protection and 

Compliance Policy, including entering into 

cooperative agreements: Provided further, 

That, in addition to the amount otherwise 

made available under this heading, 

$9,500,000 shall remain available until 

September 30, 2016, for necessary expenses 

for carrying out subtitle F of title I of division 

A of Public Law 112–141, to be derived from 

the trust fund established under section 1602 

of such Public Law, without altering the 

percentages of funds made available for other 

purposes from the remaining balance of the 

trust fund. 

Department-Wide Systems and Capital 

Investments Programs

For development and acquisition of automatic 

data processing equipment, software, and 

services and for repairs and renovations to 

buildings owned by the Department of the 

Treasury, $2,725,000, to remain available 

until September 30, [2016] 2017: Provided, 

That these funds shall be transferred to 

accounts and in amounts as necessary to 

satisfy the requirements of the Department's 

offices, bureaus, and other organizations: 

Provided further, That this transfer authority 

shall be in addition to any other transfer 

authority provided in this Act[: Provided 

Department of the Treasury - Budget in Brief 115
further, That none of the funds appropriated 

under this heading shall be used to support or 

supplement "Internal Revenue Service, 

Operations Support'' or "Internal Revenue 

Service, Business Systems Modernization''].

Office of Inspector General

For necessary expenses of the Office of 

Inspector General in carrying out the 

provisions of the Inspector General Act of 

1978, [$34,800,000] $35,351,000, including 

hire of passenger motor vehicles; of which not 

to exceed $100,000 shall be available for 

unforeseen emergencies of a confidential 

nature, to be allocated and expended under the 

direction of the Inspector General of the 

Treasury[; of which not to exceed $2,500 shall 

be available for official reception and 

representation expenses; and of which 

$2,800,000 shall be for audits and 

investigations conducted pursuant to section 

1608 of the Resources and Ecosystems 

Sustainability, Tourist Opportunities, and 

Revived Economies of the Gulf Coast States 

Act of 2012 (33 U.S.C. 1321 note)]. 

Treasury Inspector General for Tax 

Administration

Salaries and Expenses

For necessary expenses of the Treasury 

Inspector General for Tax Administration in 

carrying out the Inspector General Act of 

1978, as amended, including purchase (not to 

exceed [150] 10 for replacement only for 

police-type use) and hire of passenger motor 

vehicles (31 U.S.C. 1343(b)); and services 

authorized by 5 U.S.C. 3109, at such rates as 

may be determined by the Inspector General 

for Tax Administration; [$156,375,000] 

$157,419,000, of which $5,000,000 shall 

remain available until September 30, [2015] 

2016; of which not to exceed $6,000,000 shall 

be available for official travel expenses; of 

which not to exceed $500,000 shall be 

available for unforeseen emergencies of a 

confidential nature, to be allocated and 

expended under the direction of the Inspector 

General for Tax Administration[; and of 

which not to exceed $1,500 shall be available 

for official reception and representation 

expenses]. 

Treasury Forfeiture Fund

([Rescission] Cancellation) 

Of the unobligated balances available under 

this heading, [$736,000,000] $950,000,000 are 

[rescinded] hereby permanently cancelled not 

later than September 30, 2015. 

Community Development Financial 

Institutions Fund Program Account

To carry out the Riegle Community 

Development and Regulatory Improvements 

Act of 1994 (subtitle A of title I of Public Law 

103–325), including services authorized by 5 

U.S.C. 3109, but at rates for individuals not to 

exceed the per diem rate equivalent to the rate 

for EX-3, [$226,000,000] $224,900,000, to 

remain available until September 30, [2015] 

2016; of which $15,000,000 shall be for 

financial assistance, technical assistance, 

training and outreach programs, designed to 

benefit Native American, Native Hawaiian, 

and Alaskan Native communities and 

provided primarily through qualified 

community development lender organizations 

with experience and expertise in community 

development banking and lending in Indian 

country, Native American organizations, 

tribes and tribal organizations and other 

suitable providers; of which, notwithstanding 

[sections] section 4707(d) [and 4707(e)] of 

title 12, United States Code, up to 

[$22,000,000] $35,000,000 shall be for a 

Healthy Food Financing Initiative to provide 

financial assistance, technical assistance, 

training, and outreach to community 

development financial institutions for the 

purpose of offering affordable financing and 

technical assistance to expand the availability 

of healthy food options in distressed 

communities; of which [$18,000,000 shall be 

Department of the Treasury - Budget in Brief 116
for the Bank Enterprise Award program; of 

which up to $24,636,000] up to $23,600,000 

may be used for administrative expenses, 

including administration of CDFI Fund 

programs and the New Markets Tax Credit 

Program [and the CDFI Bond Guarantee 

Program, $1,000,000 for capacity building to 

expand CDFI investments in underserved 

areas], and up to $300,000 for the 

administrative expenses to carry out the direct 

loan program; and of which up to 

[$2,222,500] $3,102,500 may be used for the 

cost of direct loans: Provided, That the cost of 

direct and guaranteed loans, including the 

cost of modifying such loans, shall be as 

defined in section 502 of the Congressional 

Budget Act of 1974: Provided further, That 

these funds are available to subsidize gross 

obligations for the principal amount of direct 

loans not to exceed $25,000,000: Provided 

further, That [during fiscal year 2014] section 

114A of the Riegle Community Development 

and Regulatory Improvement Act of 1994 (12 

U.S.C. 4701 et seq.) shall remain in effect 

until September 30, 2015: Provided further, 

That commitments to guarantee bonds and 

notes under section 114A of the Riegle 

Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. [4701 et 

seq.] 4713a) shall not exceed [$750,000,000] 

$1,000,000,000: Provided further, That no 

funds shall be available for the cost, if any, of 

bonds and notes guaranteed under such 

section, as defined in section 502 of the 

Congressional Budget Act of 1974. 

Special Inspector General for the Troubled 

Asset Relief Program 

Salaries and Expenses

For necessary expenses of the Office of the 

Special Inspector General in carrying out the 

provisions of the Emergency Economic 

Stabilization Act of 2008 (Public Law 110–

343), [$34,923,000] $34,234,000. 

Financial Crimes Enforcement Network

Salaries and Expenses

For necessary expenses of the Financial 

Crimes Enforcement Network, including hire 

of passenger motor vehicles; travel and 

training expenses of non-Federal and foreign 

government personnel to attend meetings and 

training concerned with domestic and foreign 

financial intelligence activities, law 

enforcement, and financial regulation; services 

authorized by 5 U.S.C. 3109; not to exceed 

$14,000 for official reception and 

representation expenses; and for assistance to 

Federal law enforcement agencies, with or 

without reimbursement, [$112,000,000] 

$108,661,000, of which not to exceed 

$34,335,000 shall remain available until 

September 30, [2016] 2017. 

Bureau of the Fiscal Service

Salaries and Expenses

For necessary expenses of operations of the 

Bureau of the Fiscal Service, [$360,165,000] 

$348,184,000; of which not to exceed 

$4,210,000, to remain available until 

September 30, [2016] 2017, is for information 

systems modernization initiatives; [of which 

$8,740,000 shall remain available until 

September 30, 2016 for expenses related to 

the consolidation of the Financial 

Management Service and the Bureau of the 

Public Debt;] and of which $5,000 shall be 

available for official reception and 

representation expenses. In addition, 

$165,000, to be derived from the Oil Spill 

Liability Trust Fund to reimburse 

administrative and personnel expenses for 

financial management of the Fund, as 

authorized by section 1012 of Public Law 

101–380. 

Department of the Treasury - Budget in Brief 117
Alcohol and Tobacco Tax and Trade 

Bureau

Federal Funds

Salaries and Expenses

For necessary expenses of carrying out section 

1111 of the Homeland Security Act of 2002, 

including hire of passenger motor vehicles, 

[$99,000,000] $96,000,000; of which not to 

exceed $6,000 for official reception and 

representation expenses; not to exceed 

$50,000 for cooperative research and 

development programs for laboratory services; 

and provision of laboratory assistance to State 

and local agencies with or without 

reimbursement: Provided, That of the amount 

appropriated under this heading, [$2,000,000 

shall be for the costs of criminal enforcement 

activities and special law enforcement agents 

for targeting tobacco smuggling and other 

criminal diversion activities] such sums as are 

necessary shall be available to fully support 

tax enforcement and compliance activities 

including tax compliance to address the 

Federal tax gap, as specified for purposes of 

Section 251(b)(2) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as 

amended. 

United States Mint

Federal Funds

Public Enterprise Fund

Pursuant to section 5136 of title 31, United 

States Code, the United States Mint is 

provided funding through the United States 

Mint Public Enterprise Fund for costs 

associated with the production of circulating 

coins, numismatic coins, and protective 

services, including both operating expenses 

and capital investments: Provided, That the 

aggregate amount of new liabilities and 

obligations incurred during fiscal year [2014] 

2015 under such section 5136 for circulating 

coinage and protective service capital 

investments of the United States Mint shall 

not exceed [$19,000,000] $20,000,000. 

Internal Revenue Service

Federal Funds

Taxpayer Services

(Including Transfer of Funds) 

For necessary expenses of the Internal 

Revenue Service to provide taxpayer services, 

including pre-filing assistance and education, 

filing and account services, taxpayer advocacy 

services, and other services as authorized by 5 

U.S.C. 3109, at such rates as may be 

determined by the Commissioner, 

[$2,122,554,000] $2,317,633,000, of which 

not less than $5,600,000 shall be for the Tax 

Counseling for the Elderly Program, of which 

not less than $10,000,000 shall be available 

for low-income taxpayer clinic grants, of 

which not less than [$12,000,000] 

$18,000,000, to remain available until 

September 30, [2015] 2016, shall be available 

for a Community Volunteer Income Tax 

Assistance matching grants program for tax 

return preparation assistance[, of which not 

less than $203,000,000 shall be available for 

operating expenses of the Taxpayer Advocate 

Service: Provided, That of the amounts made 

available for the Taxpayer Advocate Service, 

not less than $5,000,000 shall be for identity 

theft casework]. 

Enforcement

For necessary expenses for tax enforcement 

activities of the Internal Revenue Service to 

determine and collect owed taxes, to provide 

legal and litigation support, to conduct 

criminal investigations, to enforce criminal 

statutes related to violations of internal 

revenue laws and other financial crimes, to 

purchase (for police-type use, not to exceed 

[850] 100) and hire passenger motor vehicles 

(31 U.S.C. 1343(b)), and to provide other 

services as authorized by 5 U.S.C. 3109, at 

such rates as may be determined by the 

Commissioner, [$5,022,178,000, of which not 

less than $200,000 shall be for intensive 

training of employees in the Exempt 

Organizations Unit and] $5,371,826,000, of 

Department of the Treasury - Budget in Brief 118
which not less than [$60,257,000] 

$57,493,000 shall be for the Interagency 

Crime and Drug Enforcement program: 

Provided, That, of the amounts provided 

under this heading, not less than 

$237,838,000, of which $5,000,000 shall be 

transferred to the Alcohol and Tobacco Tax 

and Trade Bureau, shall be for an additional 

appropriation for tax activities, including tax 

compliance to address the Federal tax gap, as 

specified for purposes of Section 251(b)(2) of 

the Balanced Budget and Emergency Deficit 

Control Act of 1985, as amended. 

Operations Support

For necessary expenses of the Internal 

Revenue Service to support taxpayer services 

and enforcement programs, including rent 

payments; facilities services; printing; 

postage; physical security; headquarters and 

other IRS-wide administration activities; 

research and statistics of income; 

telecommunications; information technology 

development, enhancement, operations, 

maintenance, and security; the hire of 

passenger motor vehicles (31 U.S.C. 1343(b)); 

and other services as authorized by 5 U.S.C. 

3109, at such rates as may be determined by 

the Commissioner; [$3,740,942,000] 

$4,456,858,000, of which not to exceed 

$250,000,000 shall remain available until 

September 30, [2015] 2016, for information 

technology support; of which not to exceed 

$65,000,000 shall remain available until 

expended for acquisition of equipment and 

construction, repair and renovation of 

facilities; of which not to exceed $1,000,000 

shall remain available until September 30, 

[2016] 2017, for research; of which not less 

than $2,000,000 shall be for the Internal 

Revenue Service Oversight Board; of which 

not to exceed $25,000 shall be for official 

reception and representation expenses: 

Provided, That not later than 30 days after the 

end of each quarter, the Internal Revenue 

Service shall submit a report to the House and 

Senate Committees on Appropriations and the 

Comptroller General of the United States 

detailing the cost and schedule performance 

for its major information technology 

investments, including the purpose and 

lifecycle stages of the investments; the reasons 

for any cost and schedule variances; the risks 

of such investments and strategies the Internal 

Revenue Service is using to mitigate such 

risks; and the expected developmental 

milestones to be achieved and costs to be 

incurred in the next quarter: Provided further, 

That the Internal Revenue Service shall 

include, in its budget justification for fiscal 

year [2015] 2016, a summary of cost and 

schedule performance information for its 

major information technology systems: 

Provided, That, of the amounts provided 

under this heading, such sums as are 

necessary shall be available to fully support 

tax enforcement and compliance activities, 

including not less than $241,689,000, for an 

additional appropriation for tax activities, 

including tax compliance to address the 

Federal tax gap, as specified for purposes of 

Section 251(b)(2) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as 

amended. 

Business Systems Modernization

For necessary expenses of the Internal 

Revenue Service's business systems 

modernization program, [$312,938,000] 

$330,210,000, to remain available until 

September 30, [2016] 2017, for the capital 

asset acquisition of information technology 

systems, including management and related 

contractual costs of said acquisitions, 

including related Internal Revenue Service 

labor costs, and contractual costs associated 

with operations authorized by 5 U.S.C. 3109: 

Provided, That not later than 30 days after the 

end of each quarter, the Internal Revenue 

Service shall submit a report to the House and 

Senate Committees on Appropriations and the 

Comptroller General of the United States 

Department of the Treasury - Budget in Brief 119
detailing the cost and schedule performance 

for CADE2 and Modernized e-File 

information technology investments, including 

the purposes and life-cycle stages of the 

investments; the reasons for any cost and 

schedule variances; the risks of such 

investments and the strategies the Internal 

Revenue Service is using to mitigate such 

risks; and the expected developmental 

milestones to be achieved and costs to be 

incurred in the next quarter. 

Administrative Provisions-Internal

Revenue Service

 (Including Transfer of Funds) 

SEC. 101. Not to exceed 5 percent of any 

appropriation made available in this Act to the 

Internal Revenue Service or not to exceed 3 

percent of appropriations under the heading 

"Enforcement'' may be transferred to any other 

Internal Revenue Service appropriation upon 

the advance [approval] notification of the 

Committees on Appropriations. 

SEC. 102. The Internal Revenue Service shall 

maintain an employee training program, 

which shall include the following topics: 

taxpayers' rights, dealing courteously with 

taxpayers, cross-cultural relations, ethics, and 

the impartial application of tax law.

SEC. 103. The Internal Revenue Service shall 

institute and enforce policies and procedures 

that will safeguard the confidentiality of 

taxpayer information and protect taxpayers 

against identity theft. 

SEC. 104. Funds made available by this or 

any other Act to the Internal Revenue Service 

shall be available for improved facilities and 

increased staffing to provide sufficient and 

effective 1–800 help line service for 

taxpayers. The Commissioner shall continue 

to make improvements to the Internal 

Revenue Service 1–800 help line service a 

priority and allocate resources necessary to 

enhance the response time to taxpayer 

communications, particularly with regard to 

victims of tax-related crimes.

[SEC. 105. None of funds made available to 

the Internal Revenue Service by this Act may 

be used to make a video unless the ServiceWide Video Editorial Board determines in 

advance that making the video is appropriate, 

taking into account the cost, topic, tone, and 

purpose of the video.] 

SEC. [106]105. The Internal Revenue Service 

shall issue a notice of confirmation of any 

address change relating to an employer 

making employment tax payments, and such 

notice shall be sent to both the employer's 

former and new address and an officer or 

employee of the Internal Revenue Service 

shall give special consideration to an offer-incompromise from a taxpayer who has been the 

victim of fraud by a third party payroll tax 

preparer.

SEC. 106. Section 9503(a) of title 5, United 

States Code, is amended by striking the clause 

"before September 30, 2013" and inserting 

"before September 30, 2018". 

[SEC. 107. None of the funds made available 

under this Act may be used by the Internal 

Revenue Service to target citizens of the 

United States for exercising any right 

guaranteed under the First Amendment to the 

Constitution of the United States.] 

[SEC. 108. None of the funds made available 

in this Act may be used by the Internal 

Revenue Service to target groups for 

regulatory scrutiny based on their ideological 

beliefs.] 

[SEC. 109. In addition to the amounts 

otherwise made available in this Act for the 

Internal Revenue Service, $92,000,000, to be 

available until September 30, 2015, shall be 

transferred by the Commissioner to the 

"Taxpayer Services'', "Enforcement'', or 

"Operations Support'' accounts of the Internal 

Revenue Service for an additional amount to 

be used solely to improve the delivery of 

services to taxpayers, to improve the 

identification and prevention of refund fraud 

and identity theft, and to address international 

and offshore compliance issues: Provided, 

Department of the Treasury - Budget in Brief 120
That such funds shall supplement, not 

supplant any other amounts made available by 

the Internal Revenue Service for such 

purpose: Provided further, That such funds 

shall not be available until the Commissioner 

submits to the Committees on Appropriations 

of the House of Representatives and the 

Senate a spending plan for such funds: 

Provided further, That such funds shall not be 

used to support any provision of Public Law 

111–148, Public Law 111–152, or any 

amendment made by either such Public Law.] 

SEC. 107. Section 9503 (a)(5) of title 5, 

United States Code, is amended by inserting 

before the semicolon the following: 

"renewable for an additional two years, based 

on a critical organizational need".

Administrative Provisions—Department of 

the Treasury

 (Including Transfer of Funds) 

SEC. 110. Appropriations to the Department 

of the Treasury in this Act shall be available 

for uniforms or allowances therefor, as 

authorized by law (5 U.S.C. 5901), including 

maintenance, repairs, and cleaning; purchase 

of insurance for official motor vehicles 

operated in foreign countries; purchase of 

motor vehicles without regard to the general 

purchase price limitations for vehicles 

purchased and used overseas for the current 

fiscal year; entering into contracts with the 

Department of State for the furnishing of 

health and medical services to employees and 

their dependents serving in foreign countries; 

and services authorized by 5 U.S.C. 3109. 

SEC. 111. Not to exceed 2 percent of any 

appropriations in this title made available 

under the headings "Departmental Offices—

Salaries and Expenses'', "Office of Inspector 

General'', "Special Inspector General for the 

Troubled Asset Relief Program'', "Financial 

Crimes Enforcement Network'', "Bureau of 

the Fiscal Service'', and "Alcohol and Tobacco 

Tax and Trade Bureau'' may be transferred 

between such appropriations upon the advance 

[approval] notification of the Committees on 

Appropriations of the House of 

Representatives and the Senate: Provided, 

That no transfer under this section may 

increase or decrease any such appropriation by 

more than 2 percent. 

SEC. 112. Not to exceed 2 percent of any 

appropriation made available in this Act to the 

Internal Revenue Service may be transferred 

to the Treasury Inspector General for Tax 

Administration's appropriation upon the 

advance [approval] notification of the 

Committees on Appropriations of the House 

of Representatives and the Senate: Provided, 

That no transfer may increase or decrease any 

such appropriation by more than 2 percent. 

SEC. 113. None of the funds appropriated in 

this Act or otherwise available to the 

Department of the Treasury or the Bureau of 

Engraving and Printing may be used to 

redesign the $1 Federal Reserve note.

SEC. 114. The Secretary of the Treasury may 

transfer funds from the Bureau of the Fiscal 

Service, Salaries and Expenses to the Debt 

Collection Fund as necessary to cover the 

costs of debt collection: Provided, That such 

amounts shall be reimbursed to such salaries 

and expenses account from debt collections 

received in the Debt Collection Fund. 

SEC. 115. None of the funds appropriated or 

otherwise made available by this or any other 

Act may be used by the United States Mint to 

construct or operate any museum without [the 

explicit approval of] prior notification to the 

Committees on Appropriations of the House 

of Representatives and the Senate, the House 

Committee on Financial Services, and the 

Senate Committee on Banking, Housing, and 

Urban Affairs.

SEC. 116. None of the funds appropriated or 

otherwise made available by this or any other 

Act or source to the Department of the 

Treasury, the Bureau of Engraving and 

Printing, and the United States Mint, 

individually or collectively, may be used to 

consolidate any or all functions of the Bureau 

Department of the Treasury - Budget in Brief 121
of Engraving and Printing and the United 

States Mint without [the explicit approval of] 

prior notification to the House Committee on 

Financial Services; the Senate Committee on 

Banking, Housing, and Urban Affairs; and the 

Committees on Appropriations of the House 

of Representatives and the Senate.

SEC. 117. Funds appropriated by this Act, or 

made available by the transfer of funds in this 

Act, for the Department of the Treasury's 

intelligence or intelligence related activities 

are deemed to be specifically authorized by 

the Congress for purposes of section 504 of 

the National Security Act of 1947 (50 U.S.C. 

414) during fiscal year 2014 until the 

enactment of the Intelligence Authorization 

Act for Fiscal Year 2014. 

SEC. 118. Not to exceed $5,000 shall be made 

available from the Bureau of Engraving and 

Printing's Industrial Revolving Fund for 

necessary official reception and representation 

expenses. SEC. 119. The Secretary of the 

Treasury shall submit a Capital Investment 

Plan to the Committees on Appropriations of 

the Senate and the House of Representatives 

not later than 30 days following the 

submission of the annual budget submitted by 

the President: Provided, That such Capital 

Investment Plan shall include capital 

investment spending from all accounts within 

the Department of the Treasury, including but 

not limited to the Department-wide Systems 

and Capital Investment Programs account, 

[the Working Capital Fund account,] and the 

Treasury Forfeiture Fund account: Provided 

further, That such Capital Investment Plan 

shall include expenditures occurring in 

previous fiscal years for each capital 

investment project that has not been fully 

completed.

[SEC. 120. (a) Not later than 2 weeks after the 

end of each quarter, the Office of Financial 

Stability and the Office of Financial Research 

shall submit reports on their activities to the 

House and the Senate Committees on 

Appropriations, the Committee on Financial 

Services of the House of Representatives and 

the Senate Committee on Banking, Housing, 

and Urban Affairs. (b) The reports required 

under subsection (a) shall include—(1) the 

obligations made during the previous quarter 

by object class, office, and activity; (2) the 

estimated obligations for the remainder of the 

fiscal year by object class, office, and activity; 

(3) the number of full-time equivalents within 

each office during the previous quarter; (4) the 

estimated number of full-time equivalents 

within each office for the remainder of the 

fiscal year; and (5) actions taken to achieve 

the goals, objectives, and performance 

measures of each office. (c) At the request of 

any such Committees specified in subsection 

(a), the Office of Financial Stability and the 

Office of Financial Research shall make 

officials available to testify on the contents of 

the reports required under subsection (a). ] 

[SEC. 121. Within 45 days after the date of 

enactment of this Act, the Secretary of the 

Treasury shall submit an itemized report to the 

Committees on Appropriations of the House 

of Representatives and the Senate on the 

amount of total funds charged to each office 

by the Working Capital Fund including the 

amount charged for each service provided by 

the Working Capital Fund to each office and a 

detailed explanation of how each charge for 

each service is calculated.] 

SEC. 120. Section 1324 of Title 31, United 

States Code, is amended by adding at the end 

thereof the following new subsection: "(c) 

Amounts appropriated under subsection (a) of 

this section shall be administered, as 

appropriate, as if they were made available 

through separate appropriations to the 

Secretary of the Treasury, the Secretary of 

Homeland Security, and the Attorney General. 

Funds so appropriated shall be available to 

the Secretary of the Treasury for refunds by 

the Internal Revenue Service of taxes collected 

pursuant to the Internal Revenue Code and 

related interest; separately to the Secretary of 

the Treasury for refunds and drawbacks of 

Department of the Treasury - Budget in Brief 122
alcohol, tobacco, firearms and ammunition 

taxes and refunds of other taxes which may 

arise and any interest on such refunds, 

including payment of claims for prior fiscal 

years; to the Secretary of Homeland Security 

for refunds and drawbacks of receipts 

collected pursuant to the customs revenue 

functions administered by the Department of 

Homeland Security pursuant to delegation by 

the Secretary of the Treasury and any interest 

on such refunds, including payment of claims 

for prior fiscal years; and to the Attorney 

General for refunds of firearms taxes and 

refunds of other taxes which may arise and 

any interest on such refunds, including 

payment of claims for prior fiscal years." 

Section 120 refers to funds appropriated or 

otherwise made available to the Secretary of 

the Treasury, the Secretary of Homeland 

Security, and the Attorney General for refunds 

of taxes and related interest on such refunds, 

drawbacks, and payments of claims for prior 

fiscal years. This provision will alleviate the 

need for the Internal Revenue Service to make 

such refunds, drawbacks and payments on 

behalf of the other federal agencies, and will 

minimize the administrative and accounting 

burdens associated with this process. This 

proposal will not create any new spending. 

SEC. 121. (a) Section 5112(t)(6)(B) of Title 

31, United States Code, is amended by striking 

"90 percent silver and 10 percent copper" and 

inserting in its place "no less than 90 percent 

silver." (b) Section 5132(a)(2)(B)(i) of Title 

31, United States Code, is amended by striking 

"90 percent silver and 10 percent copper" and 

inserting in its place "no less than 90 percent 

silver."

Section 121 would provide flexibility in the 

composition of the coins in silver proof sets, 

which would improve efficiency in the 

process of manufacturing these sets thus 

lowering its production costs.

SEC. 122. Section 5112(r)(5) of Title 31, 

United States Code, is amended by inserting 

"for circulation" after both instances of 

"minted and issued." 

Section 122 would limit the requirement that 

the number of $1 coins minted and issued in a 

year with the Sacagawea-design on the 

obverse be not less than 20 percent of the total 

number of $1 coins minted and issued in a 

year to $1 coins minted and issued for 

circulation. The limitation of the 20 percent 

requirement to circulating coins avoids the 

need to mint and issue Native American $1 

coins in excess of the amounts that 

numismatic customers demand.

SEC. 123. Of the funds made available by this 

Act to the Internal Revenue Service and 

Alcohol Tobacco Tax and Trade Bureau, not 

less than $9,445,157,000 shall be specified to 

pay for the costs of tax activities, including tax 

compliance to address the Federal tax gap, as 

specified for purposes of Section 251(b)(2) of 

the Balanced Budget and Emergency Deficit 

Control Act of 1985, as amended.

(Department of the Treasury Appropriations 

Act, 2014.) 

Department of the Treasury - Budget in Brief 123
Department of the Treasury - Budget in Brief 124
Mandatory Funding Levels for the FY 2015 President's Budget - Treasury Chapter 

(dollars in millions) 

(includes legislative proposals) 

Appropriations (Dollars in Millions) FY 2013 FY 2014 FY 2015

Enacted Estimated Estimated $ Change % Change Refunding Internal Revenue Collections, Interest 2,803 3,280 3,478 198 6.0%

 Payment to the Resolution Funding Corporation 2,503 2,628 2,628 0 0.0%

 Interest on Uninvested Funds 23 24 24 0 0.0%

 Restitution of Forgone Interest 20 1,216 0-1,216 -100.0%

 Federal Interest Liabilities to States 0 2 2 0 0.0%

 Interest Paid To Credit Financing Accounts 8,488 13,613 14,432 819 6.0%

 Interest on Public Debt 415,670 427,219 454,903 27,684 6.5%

 Other Interest -38,382 -$53,377 -56,776 -3,399 6.4%

INTEREST PAYMENTS: $391,125 $394,605 $418,691 $24,086 6.1%

MANDATORY ACCOUNTS:

 Terrorism Insurance Program 2 113 179 $66 58.4%

 GSE Preferred Stock Purchase Agreements 45,535 0 0 $0 0.0%

 GSE Mortgage-Backed Securities Purchase Program 594 8 9 $1 12.5%

 Office of Financial Stability 305 220 184 -$36 -16.4%

 Troubled Asset Relief Program (TARP) 43 82 0 -$82 -100.0%

 Troubled Asset Relief Program Equity Purchase Program 440 0 0 $0 0.0%

 Grants for Specified Energy Property 5,153 4,665 1,695 -$2,970 -63.7%

 Small Business Lending Fund Program Account 52 46 17 -$29 -63.0%

 State Small Business Credit Initiative 1 1,500 0 -$1,500 -100.0%

 Community Development Financial Institution Fund Program Account 1 1 1 $0 0.0%

 Exchange Stabilization Fund 130 221 249 $28 12.7%

 Presidential Election Campaign Fund 35 30 32 $2 6.7%

 Financial Research Fund 33 101 115 $14 13.9%

 Treasury Forfeiture Fund 1,628 -71 1,279 $1,350 -1901.4%

 Federal Financing Bank 2,706 2,563 2,431 -$132 -5.2%

 Comptroller of the Currency 1,006 1,081 1,081 $0 0.0%

 Fiscal Service 107 88 105 $17 19.3%

 Reimbursement to Federal Reserve Banks 108 110 110 $0 0.0%

 Payment of Government Losses in Shipment 0 1 1 $0 0.0%

 Financial Agent Services 607 636 629 -$7 -1.1%

 Payment to FRA for AMTRAK Debt Restructuring 55 0 0 $0 0.0%

 Federal Reserve Bank Reimbursement Fund 377 395 395 $0 0.0%

 Payment to the Santee Sioux Tribe Development Trust Fund 0 7 0 -$7 -100.0%

 Payment to the Yankton Sioux Tribe Development Trust Fund 0 33 0 -$33 -100.0%

 Claims, Judgments and Relief Acts 5,125 2,327 1,089 -$1,238 -53.2%

 Check Forgery Insurance Fund 16 20 20 $0 0.0%

 Continued Dumping and Subsidy Offset 88 82 88 $6 7.3%

 Cheyenne River Sioux Tribe Terrestrial Wildlife Habitat Restoration 2 2 2 $0 0.0%

 Gulf Coast Restoration Trust Fund 307 317 323 $6 1.9%

 Santee Sioux Tribe Development Trust Fund 0 7 0 -$7 -100.0%

 Yankton Sioux Tribe Development Trust Fund 0 31 0 -$31 -100.0%

 Internal Revenue Collections for Puerto Rico 349 422 425 $3 0.7%

 Payment Where Earned Income Credit Exceeds Liability for Tax 57,513 58,585 58,368 -$217 -0.4%

 Payment Where Child Credit Exceeds Liability for Tax 21,608 21,698 21,720 $22 0.1%

 Payment Where Health Coverage Tax Credit Exceeds Liability for Tax 121 32 0 -$32 -100.0%

 Payment where Alternative Minimum Tax Credit Exceeds Liability for Tax 169 130 70 -$60 -46.2%

 Payment where Tax Credit to Aid First-Time Homebuyers Exceeds Liability for Tax 17 5 0-$5 -100.0%

 Payment where Certain Tax Credit Exceeds Liability for Corporate Tax 190 5 0-$5 -100.0%

 Payment Where American Opportunity Credit Exceeds Liability for Tax 4,041 6,165 6,274 $109 1.8%

 Making Work Pay Tax Credit 11 5 0 -$5 -100.0%

 Build American Bond Payments, Recovery Act 3,899 3,823 4,120 $297 7.8%

 Payment Where COBRA Credit Exceeds Liability for Tax 30 10 0-$10 -100.0%

 Payment to Issuer of Qualified Zone Academy Bonds 51 49 53 $4 8.2%

 Payment to Issuer of Qualified School Construction 699 688 741 $53 7.7%

 Payment to Issuer of New Clean Renewable Energy Bonds 29 27 29 $2 7.4%

 Payment to Issuer of Qualified Energy Conservation Bonds 29 30 32 $2 6.7%

 Payment Where Adoption Credit Exceeds Liability for Tax 143 20 0 -$20 -100.0%

 Payment Where Small Business Health Insurance Tax Credit Exceeds Liability for Tax 75 88 113 $25 28.4%

 Therapeutic Discovery Program Grants and Administration 1 0 0 $0 0.0%

 Federal Tax Lien Revolving Fund 2 3 2 -$1 -33.3%

 IRS Miscellaneous Retained Fees 353 333 340 $7 2.1%

 IRS Informant Payments 53 139 75 -$64 -46.0%

 Refundable Premium Tax Credit and Cost Sharing Reductions 0 36,748 60,082 $23,334 63.5%

 Payment in Lieu of Tax Credits for Promise Zones 0 0 11 $11 0.0%

 Pay for Success 0 0 300 $300 0.0%

 America Fast Forward Bonds 0 0 266 $266 0.0%

 Travel Promotion Fund 95 93 100 $7 7.5%

 Offsets:

 Treasury Mandatory Offsetting Receipts -115,073 -81,586 -23,389 $58,197 -71.3%

Subtotal, MANDATORY ACCOUNTS $38,861 $62,128 $139,766 $77,638 125.0%

TOTAL, DEPARTMENT OF THE TREASURY $429,986 $456,733 $558,457 $101,724 22.3%

FY 2014 to FY 2015

Department of the Treasury - Budget in Brief 125
Total Treasury Department Mandatory Budget 

The Treasury Department Mandatory 

Budget includes $558 billion dollars in 

interest payments, mandatory accounts, and 

offsetting collections (offsets). These 

accounts and the estimated budget authority 

are summarized above. Account totals 

include the effects of FY 2015 policy 

proposals. For more detailed descriptions of 

each account, please see the Department of 

the Treasury chapter in the FY 2015 

Appendix, Budget of the U.S. Government 

at: 

http://www.whitehouse.gov/omb/budget. 

Interest Payments - $419 billion 

These are permanent, indefinite funds for 

interest payments. This includes Interest on 

the Public Debt, which consists of all 

interest paid on Treasury securities and sold 

to the public and to Federal Government 

trust funds, revolving funds and deposit 

funds. Treasury interest payment accounts 

also consist of Refunding Internal Revenue 

Collections, Interest, Payment to the 

Resolution Funding Corporation, Interest on 

Uninvested Funds, Restoration of Foregone 

Interest, Federal Interest Liabilities to the 

States, Interest Paid to Credit Financing 

Accounts, , and Interest on the Public Debt.

Mandatory Accounts - $139 billion 

These are accounts for which the Congress 

has given the Department of Treasury 

permanent authority to expend funds as 

appropriations. These include permanent 

authority appropriations that fund a number 

of programs under Treasury jurisdiction 

such as the Terrorism Risk Insurance 

Program; the Small Business Lending Fund 

and the State Small Business Credit 

Initiative. This also includes programs run 

out of the Office of Financial Stability, 

including the Troubled Asset Relief 

Program (TARP). Other accounts that fall 

under mandatory programs include all 

Internal Revenue Service refundable tax 

credit accounts, certain user fees, and 

informant payments, as well as Grants for 

Specified Energy Property, and Therapeutic 

Discovery Program Grants. The Department 

is also a custodian for a number of 

government accounts and funds listed in this 

section and further detailed in the FY 2015 

Appendix, Budget of the U.S. Government. 

Offsetting Collections Payments - $23 

billion 

Offsets collections include payments to the 

Government that, by law, are credited 

directly to expenditure accounts and 

deducted from gross budget authority and 

outlays of the expenditure account. 

Treasury’s Offsetting Collections accounts 

include the non-budgetary accounts that 

record all cash flows to and from the 

Government resulting from direct loans 

obligated in FY 2008 and beyond (including 

modifications of direct loans that resulted 

from obligations in any year). 

Department of the Treasury - Budget in Brief 126