DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 

ASSISTANT SECRETARY 

MEMORANDUM FOR SANDRA L. PACK 

ASSISTANT SECRETARY FOR MANAGEMENT 

AND CHIEF FINANCIAL OFFICER 

/L~-Ã‘Ã‘

FROM: 	 Thomas Sharpe, Jr. 


Deputy Assistant Secretary for 


Headquarters Operations 


SUBJECT: Implementation of the Executive Order 13392, "Improving 


Agency Disclosure of Information" 


On December 14,2005, the President issued Executive Order 13392 (EO), 

"Improving Agency Disclosure of Information" (attached). The President directed 

agencies to ensure citizen-centered and results-oriented Freedom of Information 

Act (FOIA) operations. 

The EO required Treasury to conduct a review of its FOIA operations and draft a 

plan for improvement with concrete milestones for FY06 and FY07. The report is 

to be submitted by the head of the agency to the Attorney General of the United 

States, and the Director, Office of Management and Budget by June 14,2006. 

The report follows the template provided by the Department of Justice's Office of 

Information and Privacy. 

Attached is the required report providing an overview of the Department's F01A 

operations and plans that were developed for its improvements. 

Attachments 
DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 

ASSISTANT SECRETARY 

The Honorable Rob Portman 

Director 

The Office of Management and Budget 

725 17th Street, NW 

Washington, DC 20503 

Dear Mr. Portman: 

Enclosed is a report summarizing the results of the Treasury Department's 

Freedom of Information Act (FOIA) review and implementation plans as required 

by E.0. 13392. A copy of the plan has also been submitted to the Department of 

Justice. 

If you or your staff have questions about the plan, please contact Hugh Gilmore, 

Director, Disclosure Services, at 202-622-0876. 

Ffl(Z-
 Sandra L. pack 

Assistant Secretary for Management 

and Chief Financial Officer 

Enclosure 
DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 

YjTg^, 

ASSISTANT SECRETARY 

The Honorable Alberto R. Gonzales 

Attorney General 

U.S. Department of Justice 

950 Pennsylvania Avenue, NW 

Washington, DC 20530-0001 

Dear Attorney General Gonzales: 

Enclosed is a report summarizing the results of the Treasury Department's 

Freedom of Information Act (FOIA) review and implementation plans as required 

by E.0. 13392. A copy of the plan has also been submitted to the Office of 

Management and Budget. 

If you or your staff have questions about the plan, please contact Hugh Gilmore, 

Director, Disclosure Services, at 202-622-0876. 

Sincerely.. 

Assistant Secretary for Management 

and Chief Financial Officer 

Enclosure 

Department of Treasury 

FOIA Improvement Report June 14,2006 

A. Nature of Treasury's FOIA Operations 

The Department of the Treasury has decentralized Freedom of Information Act (FOIA) 

operations. For Headquarters, FOIA is administered by the Disclosure Office within the 

Departmental Offices and by staff within each policy office. FOIA operations in 

Treasury bureaus vary from a one or two person unit located at Bureau headquarters to 

the Internal Revenue Service (IRS) network of 15 district FOIA offices. 

Treasury's main challenge in FOIA operations is to reduce the backlog of requests that 

have built up over the years. The Department received 53,330 FOIA requests in FY2005 

and ended the year with a backlog of 4,883 cases. The main goal is to reduce this 

backlog. This will be achieved by reengineering the multi-track FOIA process, 

establishing targets for production, monitoring performance, assisting the personnel 

responsible for these tasks, and creating a FOIA Council for sharing ideas and 

accountability. 

Success in reducing the FOIA backlog will be evaluated through metrics, such as request 

volume and complexity. The multi-track process dovetails with this endeavor to see that 

these variables are assessed early in the processing of the request to increase efficiency. 

Using the FOIA Access database and multi-track system organization, staff will be 

alerted so that new requests don't exacerbate the backlog problem. 

1. Organization in the Departmental Offices (DO) for FOIA Operations 

The program offices within DO are primarily responsible for policy. The 

majority of Treasury's workforce and resources are focused in its operating bureaus. DO 

includes divisions headed by Assistant Secretaries, some of whom report to Under 

Secretaries, with primary responsibility for policy formulation and overall management 

of the Treasury Department. They received 1,106 FOIA requests in FY2005. The 

program offices receiving the majority of the FOIA requests and the types of records 

requested are as follows: 

Executive Secretariat serves as a major policy advisor to the Secretary and Deputy 

Secretary, and has primary responsibility for creating and recommending domestic and 

international financial, economic, and tax policy. Furthermore, it has a role participating 

in the formulation of broad fiscal policies that have general significance for the economy 

and managing the public debt. Its records document the Secretary's oversight of 

Treasury's law enforcement responsibilities and fiscal agent activities for the U.S. 

Government and the manufacturing of coins, currency, and other products for customer 

agencies. 
The Executive Office of Terrorist Financing and Financial Crime (EOTFFC) 

develops and implements U.S. Government strategies to combat terrorist financing 

domestically and internationally. These strategies include the National Money 

Laundering Strategy as well as other policies and programs to fight financial crimes. 

Generally, the FOIA requests they receive are complex and deal with sensitive topics 

such as requests for law enforcement records concerning the Treasury Department's 

efforts to combat terrorist financing and other financial crimes both within the United 

States and abroad. The office works closely with other entities to identify, block, and 

dismantle sources of financial support for terrorism and other criminal activities. 

Office of Foreign Assets Control (OFAC) enforces economic and trade sanctions 

based on U.S. foreign policy and national security goals. OFAC implements sanctions 

against targeted foreign countries, terrorists, international narcotics traffickers, and those 

engaged in activities related to the proliferation of weapons of mass destruction. 

Examples of records maintained by the office include: a Census of U.S.-based, foreignowned assets which have been blocked at any time since 1940 identifying the location, 

type, and value of property frozen under OFAC administered programs; records on 

individuals who have engaged in or who are suspected of having engaged in transactions 

and activities prohibited by Treasury Department regulations; and investigations and 

administrative actions taken with respect to individuals and organizations suspected of 

violating statutes and regulations administered and enforced by OFAC. 

Office of International Affairs (IA) advises and assists in the development and 

execution of U.S. international economic and financial policy, including the creation of 

policies for international financial, economic, monetary, trade, investment, bilateral aid, 

environmental, debt, development, and energy programs. International Affairs develops 

policy for U.S. participation in international financial institutions. Requests for records 

deal with a wide variety of complex international issues, treaties, national security and 

classification, documents referred from Presidential libraries, and intelligence community 

information. Documents date back to the 194OYs,which may require a great deal of effort 

to search for records at the Federal Records Centers. Many requests require search and 

review of a voluminous amount of records as well as coordination in partnership with 

other federal agencies. 

Office of Tax Policy develops and implements tax policies and programs. Also, it 

reviews regulations and rulings to administer the Internal Revenue Code; negotiates tax 

treaties; and provides economic and legal policy analysis for domestic and international 

tax policy decisions. Tax Policy also provides estimates for the President's budget, fiscal 

policy decisions, and cash management decisions. It responds to tax policy FOIA 

requests which are typically complex. Its records deal with the entire range of tax policy 

issues, international tax treaties, and documents referred by the IRS. Documents date 

back to the 1940's and can require a great deal of effort to search including the Federal 

Records Centers. Most requests require a search and review of a voluminous amount of 

records. 
The Office of General Counsel advises Treasury clients on a wide range of legal 

issues ranging from broad policy aspects of all areas of Treasury business such as 

management of the public debt and administration of internal revenue and tariff laws to 

international cooperation in finance and law enforcement. 

Community Development Financial Institutions (CDFI) expands the capacity of 

financial institutions to provide credit, capital, and financial services to underserved 

populations and communities in the U.S. 

Office of Inspector General (OIG) advises the Secretary and Deputy Secretary by 

providing independent audits, investigations, and oversight to the Department of the 

Treasury and its programs. The most frequently requested records are OIG investigative 

reports and audit reports. 

2. Organization for Treasury Bureaus' FOIA Operations 

Treasury Bureaus are primarily operating organizations that execute the 

operational facets of Treasury's business. The bureaus and their frequently requested 

records are: 

The Alcohol and Tobacco Tax and Trade Bureau (TTB) enforces and administers 

laws on the production, use, and distribution of alcohol and tobacco products. TTB also 

collects excise taxes for firearms and ammunition. TTB receives requests for documents 

pertaining to industry applications for permits, organizational structures, ownership, 

officers and directors. TTB received 140 FOIA requests in FY2005. 

The Bureau of Engraving and Printing (BEP) designs and manufactures U.S. 

currency, stamps, securities, and other official certificates and awards. Generally, BEP 

receives requests for records concerning personnel, contracts, and general information 

about the bureau. BEP received 90 FOIA requests in FY2005. 

The Bureau of the Public Debt (BPD) borrows the money needed to operate the 

Federal Government and accounts for the public debt. It administers the public debt by 

issuing and servicing U.S. Treasury marketable, savings, and special purpose securities. 

The requests received most frequently pertain to Savings Bond records and unclaimed 

monies. BPD received 90 FOIA requests in FY2005. 

The Financial Crimes Enforcement Network (FinCEN) collects, analyzes, and 

shares information needed to combat the financial aspects of criminal activity worldwide. 

The requests are frequently from individuals seeking information about them that may be 

contained in a FinCEN database, requests from third parties for records about other 

individuals, and records regarding entities believed to be involved in money laundering. 

FinCEN received 99 FOIA requests in FY2005. 

The Financial Management Service (FMS) provides central payment services to 

federal program agencies, operates the Federal Government's collections and deposit 
systems, provides government-wide accounting and reporting services, and manages the 

collection of delinquent debt. FMS received 355 FOIA requests by the end of FY2OOS. 

The Internal Revenue Service (IRS) is the largest of Treasury's bureaus. It 

determines, assesses, and collects internal revenue in the U.S. The majority of FOIA 

requests received in the IRS involve first party requests - individuals seeking access to 

their tax records. Those cases that do not involve first party requests often involve 

retrieval of historical and background files regarding various procedural and technical 

opinions that have been issued by the IRS. The IRS received 4 1,9 12 FOIA requests in 

FY2005. 

The U.S. Mint (Mint) designs and manufactures domestic, numismatic, and 

bullion coins as well as commemorative medals and other numismatic items. The Mint 

distributes U.S. coins to the Federal Reserve Banks and maintains physical custody and 

protection of our nation's silver and gold assets. Most FOIA requests to the Mint pertain 

to Mint contracts, records of a customer's coin purchases, coin mintages, designs, and 

specifications. The Mint received 3 16 FOIA requests in FY2005. 

The Office of the Comptroller of the Currency (OCC) charters, regulates, and 

supervises national banks to ensure a safe, sound, and competitive banking system that 

supports the citizens, communities, and economy of the U.S. Requests received by the 

OCC most often pertain to national bank applications, legal interpretations, and other 

corporate documents. The OCC received 4,805 FOIA requests in FY2005. 

The Office of Thrift Supervision (07'') charters, examines, and regulates federal 

thrifts to maintain their safety and soundness. OTS also regulates state-chartered savings 

associations belonging to the Savings Association Insurance Fund and savings 

association affiliates and holding companies. The records that are most frequently 

requested pertain to the corporate applications filed with the OTS. The OTS received 

4,071 FOIA requests in FY2005. 

B. Areas Selected for Review 

To accomplish our primary goal of backlog reduction, we will review, validate, and 

consider improvements in the following areas: 

Reengineer any deficiencies the multi-track FOIA process 

Establish targets to increase production 

Monitor performance to decrease requests exceeding 20 days 

Provide necessary assistance to the personnel responsible for FOIA 

Create a FOIA Council for sharing ideas and accountability 

Escalate production to meet incoming requests in FY2006 

Increase production in FY2007 to achieve a 10% reduction in backlog 
C. Narrative Statement 

The Department of Treasury's completed requests have not kept pace with the total 

volume of incoming requests since FY2000. The average pending total is 6,607 requests 

for the last five years (see Appendix Tab1 Chart: Treasury FOIA Historical Processing). 

To reduce the backlog, Treasury identified steps to improve FOIA processing. As 

discussed during the meeting with OMB on May 18,2006 (see Appendix Tab 2), the 

following improvements were proposed: 

Obtain proven leadership 

* Establish governance and sponsorship 

Set goals and identify resource needs 

Establish a FOIA Council 

Success of these improvements will be measured through the results of backlog 

reduction. If theses initiatives do not show any reduction success, then a reassessment of 

the FOIA process is necessary. 

D. Area Chosen for Improvement 

1. Departmental Offices 

Departmental Offices is experiencing a growth of cases contributing to an already 

sizable backlog. Some of the offices already have backlogs exceeding 100 cases. If this 

trend continues, compared with the prior closeout rate of FY2OO5, then the backlog 

amount could conceivably double for some offices (see Appendix Tab 3 Chart: 

Departmental Office Raw Data Comparison). How to approach the backlog reduction is 

a two-phased process. First, Treasury must attempt to prevent new requests from 

exacerbating the backlog as they arrive in FY2006 and go beyond twenty days for a 

response. The focus will be on those offices already generating a trend toward not 

answering requests within twenty days. Second, Departmental Offices will tackle the 

backlog from the oldest requests forward, so that those requests do not statistically anchor 

us by continuing to stagnate (see Appendix Tab 4 Chart: 905 Pending Requests in 

Departmental Offices). To achieve this, the Departmental Offices will review their 

productivity of the prior year, FY2005 (see Appendix Tab 5 Chart: Total Closed Cases 

by Office). The levels of closed cases will be used as a measurement vis-a-vis their 

current production levels for FY2006. Surpassing those prior year production levels of 

closed cases would be an indicator of making headway into reducing the backlog. The 

goal is to closely monitor production levels. This will allow Departmental Office staff to 

"blitz" the backlog from both ends - the front end, which continues to grow if requests 

are not responded to within twenty days, and the back end - those requests which have 

been administratively stagnant. 
2. Other Treasury Bureaus 

Treasury's review will focus on backlog reduction. The following is a synopsis of 

each Bureau and the areas chosen for improvement according to the organization scheme of 

each Bureau. Overall, the Bureaus closed 53,987 cases in FY2005 (see Appendix Tab 6 

Chart: Bureau Closed Cases FY2005). IRS receives the largest volume of the overall 

FOIA requests received by Treasury; consequently, the pending requests from FY2005 are 

a portion of IRS' total backlog (see Appendix Tab 7 Chart: Bureau Pending FY2005). 

However, the backlog total compared with their total closed cases is less than seven 

percent. 

The Alcohol and Tobacco Tax and Trade Bureau (TTB) 

Based on the FY2005 annual report, TTB has 74 pending requests out of 201 processed 

requests. Backlog reduction of 10% is anticipated by September 30,2007. 

The Bureau of Engraving and Printing (BEP) 

Only three requests were pending in FY2005. Backlog reduction of 10% is anticipated 

by September 30,2007. 

The Bureau of the Public Debt (BPD) 

BPD's FY2005 annual report indicated 90 requests received and 90 requests processed. 

No pending requests remained. Backlog reduction of 10% is anticipated by 

September 30,2007. 

The Financial Crimes En forcement Network (Fin CEN) 

FinCEN has 78 pending requests according to their FY2005 annual report. Backlog 

reduction of 10% is anticipated by September 30,2007. 

The Financial Management Service (FMS) 

FMS had 12 pending requests at the close of FY2OO5. Backlog reduction of 10% is 

anticipated by September 30,2007. 

The Internal Revenue Service (IRS) 

Based on information from the FY2005 annual report, IRS has 2,913 pending requests; 

however, this backlog is minimal in comparison to the 42,533 cases which were 

processed in that year, and the caseload of 41,912 which were received in FY2005. This 

leaves the backlog at about 7% of the entire FOIA output for IRS. IRS' high volume 

processing provides a significant benchmark for effective administration of FOIA 

requests. Backlog reduction of 10% is anticipated by September 30,2007. 

The U.S. Mint (Mint) 

The Mint had only nine requests as backlog in their FY2005 annual report and met the 

case volume of requests in FY2005 with 316 responses. Backlog reduction of 10% is 

anticipated by September 30,2007. 
The Office of the Comptroller of the Currency (OCC) 

There were five remaining requests at the end of FY2OO5 for OCC. They processed 

4,814 requests. Backlog reduction of 10% is anticipated by September 30,2007. 

The Office of Thrift Supervision (OTS) 

There are 94 pending requests remaining at the end of FY2OO5 according to the OTS 

annual report. This bureau processed over 4,000 requests. Backlog reduction of 10% 

is anticipated by September 30,2007. 

E. FOIA Backlog Reduction Improvement Plan 

1. Departmental Offices 

a. Reduce backlog by 10% (December 3 1,2007) 

b. Steps planned to implement: 

1) Obtain proven leadership (June 30,2006) 

2) Form Departmental Offices FOIA Council (completed June 1, 

2006) 

3) Form Treasury Bureau FOIA Council (completed June 1,2006) 

4) Establish targets, monitor progress, establish response goals, 

reduce oldest requests, track delinquency, and implement team 

work (June 30,2006) 

a) Identify resource needs 

b) Improve process efficiency 

c. Milestones 

1) Hire new FOIA Director of Disclosure Services (completed 

May 15,2006) 

2) File improvement report with Department of Justice and Office 

of Management and Budget (June 14,2006) 

3) Govern through FOIA Council (monthly) 

4) Closeout 10 oldest FOIA requests (completed May 23,2006) 

5) Continue review on a rolling basis 10 oldest requests (quarterly) 

6) Report status to Chief FOIA Officer (monthly) 

7) Goal of 5% reduction (December 3 1,2006) 

8) Target of 10% (June 30,2007) 

9) Re-evaluate FOIA process based on results (December 3 1, 

2007) 

d. Means of measurement of backlog reduction - outstanding requests 

compared to closed requests: , 

1) By month of current fiscal year 

2) Annually 

3) Treasury-wide 

4) By Departmental Offices and Bureaus 
- - - - - - - --- - 

2. Other Treasury Bureaus -See El above 

F. Grouped Improvement Areas 

1. Departmental Offices 

Complete by 12/31/06 

Establish FOIA Service 

Centers (March 3 1,2006) 

Hire new FOIA Director of 

Disclosure Services (May, 

15,2006) 

PlanReport due to OMB 

and DOJ (June 14,2006) 

draft (June 6,2006) 

FOGDOFOIA council 

(June 30,2006) 

Report to Chief FOIA 

Officer (monthly) 

Complete by 12/31/2007~~~~ complete after 12/31/2007 

Implement goals set by 


FOIA Council for 10% 


reduction in backlog 


(January 1,2007) 


Revise multi-track 


processing (June 30,2007) 


Report above in annual 


report through DO FOIA 


Council 


(September 30,2007) 


Monitor target progress 


monthly at FOIA Council 


meeting 


Continue monthly reporting 


to Chief FOIA Officer 


Adjust goals contingent 

upon results (January 1, 

2007) 

FOIA Council revise 

Plan/Report (March 31, 

2008) and continue 

monthly meetings 

Revisit 10% goal for 

viabilitylflexibility (June 

30,2008) 

Establish planheport for 

2009-? 

(September 30,2008) 

Continue monthly reporting 

to Chief FOIA Officer 
2. Other Treasury Bureaus 

Complete by 12/31/06 

Establish FOIA Service 

Centers (March 3 1,2006) 

Hire new FOIA Director of 

Disclosure Services (May 

1 5,2006) 

PladReport due to OMB 

and DOJ (June 14,2006) 

draft (June 6,2006) 

Form Bureau FOIA 

Council (June 30,2006) 

Reports to Chief FOIA 

Officer (monthly) 

Complete by 12/31/2007 

Implement goals set by 


FOIA Council for 10% 


reduction of backlog 


(January 1,2007) 


Revise multi-track 


processing (June 30,2007) 


Report above in annual 


report from Bureau FOIA 


Council 


(September 30,2007) 


Monitor target progress 


monthly at FOIA Council 


meeting 


Continue monthly reporting 


to Chief FOIA Council 


Complete after 12/31/2007 

Adjust goals contingent 


upon results (January 1, 


2007) 


FOIA Council revise 


PlanIReport (March 3 1, 


2008) and continue 


monthly meetings 


Revisit 10% goal for 


viabilitylflexibility (June 


30,2008) 


Establish planlreport for 


2009-? 


(September 30,2008) 


Continue monthly reporting 


to Chief FOIA 

TAB 1 


TAB 2 




CL We have actions already underway to 

"improve our FOIA process 

Obtaining proven leadership- new manager on board May 15 

Establishing governance and sponsorship 

- Forming Treasury FOIA Council (Bureau and Departmental Offices) 

Chaired by DAS HQOPs (on Chief FOIA Officer behalf) 

Includes senior officials in bureaus responsible for FOIA operations 

Setting goals and identifying resource needs through Council 

- Establish challenges by Bureau -$ 

Stop backlog growth in FY06 ,- - * ,- f'1 

, 1 

Reduce backlog 10% in FY07 *d d' - . F 

< - 

Bring response time for new requests into compliance 

Identify and request resources (estimated at 10-1 5 FTE and IT automation) to 

meet challenges - this initiative is contingent upon other priorities such as 

national security, etc. 

Implementation plans due June 

Improving process 

- Reengineer, automate, attack oldest, accountability, resource allocation, etc. 

Monitoring and reporting through Councils to Chief FOIA Officer 

- Track completion rates by Bureau 
k
Is) 


Is) 


3 


(D--m 

3 


(D 

0) 

(ft 
" -bk Treasury FOIA Historical Processing 


Volumes FY 2000 - 2005 


Â¥TotaRequests HTotalProcessed Â¥Pendin 1 




TAB 4 


TAB 5 


TAB 6 

Bureau Closed Cases FY 2005 

Total Closed Cases 53987 

DO 

BTTB 

DOCC 

BEP 

FMS 

IRS 

I MINT 

B BPD 

I OTS 

TIGTA 

I FINCEN 
TAB 7