Office of Financial Research 

FY 2015 

President’s Budget
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Table of Contents

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

1A – Mission Statement.................................................................................................................. 3

1.1 – Appropriations Detail Table ............................................................................................... 3

1.B.2 Workforce Plan Steady State............................................................................................... 12

Section 2 – Budget Adjustments and Appropriation Language............................................. 14

2.1 – Budget Adjustments Table................................................................................................ 14

2A – Budget Increases and Decreases Description....................................................................... 14

2B – Appropriations Language and Explanation of Changes....................................................... 14

2C – Legislative Proposals............................................................................................................ 14

Section 3 – Budget and Performance Plan and Report........................................................... 16

3.1 OFR Total Expenditures/Obligations (FY 2011 – FY 2015).................................................. 17

3A – Data Center .......................................................................................................................... 19

3.A.1 – Data Center Budget and Performance Report and Plan................................................... 20

3B – Research and Analysis....................................................................................................... 20

3.B.1 – Research and Analysis Budget and Performance Report and Plan.................................. 21

3B.1 Center of Excellence for Research ....................................................................................... 21

3C – Operations and Support Services..................................................................................... 22

3.C.1 – Operations and Support Services Budget and Performance Report and Plan.................. 22
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Section 1 – Purpose

1A – Mission Statement

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act)

established the Office of Financial Research (OFR or Office) within the Department of the 

Treasury (Treasury). The OFR serves 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.

1.1 – Appropriations Detail Table

Dollars in thousands

Office of Financial Research FY 2013 FY 2014 FY 2015 FY 2014 to FY 2015

Resources Actual Estimated Estimated $ Change % Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections:

 Assessments A19,000 87,148 93,829 6,681 8%

 Interest 4 37 37 0 0%

 Restoration of sequestration reduction 0 969 0 -969 -100%

 Recoveries 576 0 0 0 NA

 Unobligated Balances from Prior 

Years B 113,904 67,210 63,114 (4,096)-6%

Total Revenue/Offsetting Collections 133,484 155,364 156,980 1,616 1%

Other Resources:

Data Center 66 37,619 115 46,489 131 49,315 16 2,826 14% 6%

Research Center C26 4,733 41 7,712 49 9,948 8 2,236 20% 29%

Operations and Support ServicesD35 22,953 53 31,774 64 32,486 11 712 21% 2%

Total Expenses/Obligations 127 65,305 209 85,975 244 91,749 35 5,774 17% 7%

Sequestration Reduction 

(969)

 

(6,275) 0 6,275 -100%

Net Results 67,210 63,114 65,231 11,548 18%

a

The OFR is financed through assessments on certain financial companies (see Section 3, Assessments).

b The FY 2015 unobligated balance brought forward total differs from the President’s Budget Appendix due to the restoration of sequestered 

funds from FY 2013 collections that were not included in the Appendix calculation.

c “

Research and Analysis” includes only staffing, outside work arrangements, and contracting related to annual report production. Costs 

associated with data, information systems, and analytical tools are captured under “Data Center.” 

d

Effective FY 2013, “Operations and Support Services” includes two offices formerly located in the Data Center. FTEs and estimated budget 

amounts reflect this organizational change.

1B – Vision, Priorities and Context

Goals and Objectives

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 
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these Treasury goals and objectives, and consistent with the Dodd-Frank Act, the OFR has 

established five strategic goals to help achieve its mission.1

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.

2. Develop and promote data-related standards and best practices.

Key objectives of 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.

3. Establish a center of excellence for research on financial stability and promote best 

practices for financial risk management.

Key objectives of 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.

4. Provide the public with key data and analysis, while protecting sensitive information.

 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 

 

1

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

http://www.treasury.gov/initiatives/wsr/ofr/Documents/OFRStrategicFramework.pdf and Treasury’s strategic plan at 

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

5. Establish the OFR as an efficient organization and world-class workplace.

 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 costeffective, transparent, and accountable manner.

Progress Against Mission

The OFR has made significant progress toward its mission, as the following examples show: 

1. Analyzing Threats to Financial Stability

The OFR has a mandate to assess risks to the financial stability of the United States and to 

monitor, investigate, and report to Congress and the Council on changes in those risks. 

To fulfill that mandate, we report regularly to the Council on developments in the financial 

system and on tools and metrics for detecting and measuring potential threats to financial 

stability. Financial stability occurs when the financial system, even under stress, operates 

sufficiently to provide its six basic functions for the economy — credit allocation and 

leverage, maturity transformation, risk transfer, price discovery, liquidity provision, and 

facilitation of payments.

In December 2013, the OFR published its 2013 Annual Report under Section 154(d) of the 

Dodd-Frank Act2. As the statute requires, this second annual report of the Office included the 

OFR’s analysis of threats to the financial stability of the United States, the status of the Office’s 

work to meet its mission, and key findings of the Office’s research on and analysis of the 

financial system. The Annual Report also documents the meaningful progress the Office has 

made in meeting our statutory mandates and mission since we published our first annual report in 

July 2012.

The OFR also provides data for the Council to use to develop its Annual Report on financial 

stability, as well as data and analysis relating to the designation of nonbank financial companies 

for consolidated supervision by the Federal Reserve Board. In collaboration with staff from 

Council member agencies, the OFR continues to develop the dashboard of metrics and indicators 

related to financial stability, known as the Financial Stability Monitor, and has developed a 

Financial Markets Monitor.

 

2

http://www.treasury.gov/initiatives/ofr/about/Documents/OFR_HumanCapitalReport2013_FINAL_12-19-

2013.pdf
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2. Addressing Data Gaps

The OFR identifies data needs through our research and monitoring and close collaboration with 

the Council and its member agencies. To take stock of available data to meet those needs, the 

Office compiled and maintains an inventory describing the data that Council member agencies 

purchase or collect. Comparing data needs with this inventory can help identify gaps, avoid

duplication, reduce costs, minimize regulatory burden, and take advantage of existing data 

sources to the extent possible. To fill the gaps, we collaborate across the Council to develop 

priorities and then look to alternative ways to expand the scope of data, such as better organizing 

existing data, promoting data standards, and collecting new data. 

The OFR is reviewing the derived data templates collected from member agencies by the 

Council’s Data Committee. The searchable inventory will help the OFR and Council member 

agencies identify whether specific data have already been collected before requesting it. The 

OFR has developed an online collaboration workspace for agencies to access this information, 

search the inventory, and avoid unnecessary requests for data. In addition, the OFR launched a 

revised version of the public website to make its work in support of the Council more 

transparent.

The OFR has successful data sharing arrangements with a number of Council member agencies 

and is working to establish new ones. For example, the Office is collaborating with Federal 

Reserve staff to improve the quality and scope of data in repo markets. In addition, the OFR is 

considering a request from the Payments Risk Committee (sponsored by the Federal Reserve 

Bank of New York) to collaborate with the FRBNY to collect and analyze data on intraday cash

flows. 

The OFR also leads the Council’s Data Committee. The Data Committee promotes 

improvements in data collection and information sharing among Council members. The 

Committee also provides direction to and requests data from the OFR. 

The Data Committee also plays an integral role in the broader initiative to facilitate the secure 

sharing of information by the OFR. For example, the Committee has completed a proposed 

framework for mapping the OFR’s information security categorizations to the ones used by other 

Council members, as encouraged by the Council of Inspectors General on Financial Oversight.

3

3. Data Standards

The Office supports the Council and its member agencies by standardizing the types and formats 

of data reported and collected. The Office’s process for promoting data standards includes: (1) 

evaluating whether standards are needed for a particular set of data, and whether developing 

them fits the Office’s mission; (2) determining whether the data in question are good candidates 

for standardization, and (3) determining the Office’s strategy. 

 

3 The Council of Inspector General on Financial Oversight Annual Report can be found at: 

http://www.treasury.gov/about/organizationalstructure/ig/Documents/CIGFO%20Document/508_CIGFO%20Annual%20Report.pdf
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Legal Entity Identifier System

The Office continues to be a leader in the initiative to establish a Legal Entity Identifier (LEI), a 

unique, global standard for identifying parties to financial transactions. The LEI will help market 

participants and government regulators aggregate, compare, and analyze data for greater insights. 

The Office also recently published a working paper, with collaboration from certain Council 

member agencies, describing the need for and strategy to develop a universal mortgage loan 

identifier. 

In June 2012, the G-204endorsed the international Financial Stability Board’s recommendation 

to implement an LEI system. That endorsement paved the way for LEI implementation. The 

OFR’s Chief Counsel serves as the first chair of the 50-member Regulatory Oversight 

Committee, formed in January 2013. The OFR is also working with Council member agencies 

on interim solutions to prepare for adoption of the LEI.

In addition, the Office assists Council member agencies with data standards initiatives. For 

example, we are working with the Commodity Futures Trading Commission and global 

regulators to align and standardize derivatives reporting. Additionally, for the LEI integration in 

the mortgage industry, the Office worked with the Mortgage Industry Standards Maintenance 

Organization (MISMO), a data standards body for the mortgage industry, to add the LEI data 

record to the industry’s standard for data exchange.

Interagency Working Groups

During FY 2015, the OFR plans to establish additional interagency working groups on key issues 

related to data standards (including assisting Council member agencies with derivatives reporting 

standards) and participate in issue-specific working groups sponsored by other organizations 

(such as work related to mortgage standards sponsored by the Consumer Financial Protection 

Bureau). The OFR also plans to produce analysis in collaboration with other Council members 

on related topics, such as asset classification or the need for additional financial data identifiers. 

Annual Workshops

The OFR also sponsors an annual regulatory data workshop, along with the Federal Reserve and 

the Federal Deposit Insurance Corporation. In FY 2013, the OFR expanded its role as a lead 

sponsor of this two-day regulators’ workshop and held a separate workshop on the topic of legal 

entity hierarchies.

The OFR expects to continue this role and expand the year-round participation of regulators in 

targeted workshops. In addition, the OFR is working on private sector standard-setting activities 

to understand industry and investor priorities. For example, the OFR sits on the board of the 

U.S. representative for financial services to the International Standards Organization and also is 

involved in other industry coordination activities, such as the Enterprise Data Management 

Council.

 

4 The G-20 (Group of Twenty) is a forum of finance ministers and central bank governors from 19 countries and the 

European Union, which begun in 1999 to encourage international cooperation on global economic issues.
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4. Conducting and Sponsoring Research Related to Financial Stability

The Office is required by statute to perform research on risks to financial stability and to evaluate 

attempts to mitigate those risks.

We distribute the results of such research in the OFR Working Paper Series. To date, we have 

published 12 working papers. The research is diverse, with the strong common theme of 

improving our collective understanding of the causes and consequences of financial instability. 

Examples include examining the interconnected nature of financial institutions and markets, the 

roles that market participants play in creating and amplifying financial distortions, and the effects 

of regulations and risk management policies. Recent policy-related topics include analyses of 

proposed contingent capital rules, the historical use of macroprudential policy in the United 

States to moderate the credit cycle, and scenario design in regulatory stress testing. 

We also conduct and publish research to support our mandate to improve the quality of financial 

data. For example, an OFR working paper explained how modern cryptography techniques may 

allow financial regulators and supervisors to mask identifying information and share data without 

compromising confidentiality.

Interagency Partnership

In May 2013, the OFR announced a partnership with the National Science Foundation (NSF) to 

promote and support research related to financial stability.5 The OFR and NSF’s Directorate for 

Computer and Information Science and Engineering are collaborating to fund innovative 

research on approaches to computing and information processing to identify and analyze risks to 

the financial system. 

Working Paper Series

In FY 2013, the OFR also published nine working papers through its OFR Working Paper Series. 

The Office coauthored some of the working papers with external experts.

6

The Research 

Seminar Series and the OFR Working Paper Series are continuing in FY 2014 as OFR’s 

Research and Analysis team explores new ways to expand collaboration with outside researchers 

to fulfill its mandate of assessing threats to financial stability.

5. Promoting Best Practices in Risk Management

As part of our research function, we are required to analyze the impact of policies related to 

financial stability. We conduct, coordinate, and sponsor research to help improve regulation of 

financial entities and markets. We also conduct studies and advise on policies related to systemic 

risk. In addition, the Office is required to promote best practices for financial risk management,

and evaluate and report on stress tests and other stability-related evaluations of financial entities.

 

5

http://www.treasury.gov/initiatives/ofr/research/Pages/GrantsProgram.aspx

6

http://www.treasury.gov/initiatives/ofr/research/Pages/Working-Paper-Series.aspx
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Publications

Six of the 12 working papers the OFR published focused on key risk methodologies and 

practices, including: 

 A Survey of Systemic Risk Analytics (January 2012)

 Forging Best Practices in Risk Management (March 2012)

 CoCos, Bail-In, and Tail Risk (January 2013)

 Systematic Scenario Selection (February 2013)

 Stress Scenario Selection by Empirical Likelihood (April 2013)

 Stress Tests to Promote Financial Stability: Assessing Progress and Looking to the Future 

(July 2013)

6. Building Critical Information Technology Infrastructure

Building information technology infrastructure and business systems is critical to the OFR’s 

support for the Council (and for broader stakeholders). The OFR needs systems for: 

 data acquisition, management, and dissemination (under strict protocols for security and 

data sharing); 

 a robust research and analytical environment for handling large amounts of data to 

support complex financial models, computations, and analysis; and 

 a secure platform for collaboration and communication with Council member agencies 

and outside researchers, as well as for public communication about OFR activities. 

During FY 2014, procurement and installation of the OFR Analytic Environment for the primary

computing center was completed in November 2013. FY 2014 procurements center around the 

standing-up of the disaster recovery computing center and expanding the capabilities deployed in 

previous years.

The agency leveraged commodity shared-service provided by the Treasury, Office of the Chief 

Information Officer (OCIO) to the fullest reasonable extent, and did not recreate those services 

within the analytic environment.

Since its inception, the OFR has emphasized data security and protection of sensitive 

information. During FY 2013, the OFR installed a wide-range of security tools and components 

that serve to strengthen the already high security protections afforded as being a part of the 

Department of the Treasury. Additional security components will be added in FY 2014.

7. Outreach and Collaboration

OFR Outreach

During FY 2013, the OFR realigned and expanded its team to manage communications, 

Congressional relations, and outreach to industry, academia, and other government entities. The 

OFR also expanded its public outreach on key activities and initiatives. For example, the Office 

realigned the Division of External Affairs to coordinate engagement with external stakeholders 

and partners in government, academia, and elsewhere. The Office named a Chief of External 

Affairs, added staff members, defined roles for communications and Congressional relations, and 

incorporated the outreach function for industry and academia. 
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In addition, the Office improved its website, making it more user-friendly and expanding 

available content. About 4,000 subscribers now receive notifications when the Office posts new 

Web content. During FY 2014, the OFR is continuing a project to enhance its website,7 issuing 

key publications, and disseminating information about the important work of its core research 

and data centers.

Research-Related Events 

Establishing strong relationships with outside experts is critical to the OFR’s effectiveness in 

fulfilling its research and analysis mandate.

During FY 2013, the Office held 58 seminars through its Research Seminar Series. The OFR 

invited researchers in academia, government, and the private sector to present findings on a 

range of topics related to the OFR’s mission.

On December 6, 2012, the OFR and the Council cohosted, “Assessing Financial Intermediation: 

Measurement and Analysis,” the second annual joint conference for leaders from the research 

and regulatory communities, public interest groups, and the financial services industry. The 

conference examined recent changes in financial companies, markets, and activities, and 

explored the future implications for financial stability, risk management, and policy.

In May 2013, the OFR and the Federal Reserve Bank of Cleveland sponsored a workshop, 

“Financial Stability Analysis: Using the Tools, Finding the Data.” The workshop brought 

together participants from academia, the regulatory community, and industry to discuss the data 

and tools needed for measuring potential threats to financial stability. 

In addition, the OFR and the Federal Reserve Bank of New York co-sponsored a conference in 

September 2013 about financial stability and short-term funding markets.

Public Appearances by Senior Leaders

The OFR senior managers presented remarks at several financial stability and risk management 

forums during FY 2013. For example, in May 2013 at the OFR’s joint conference with the 

Federal Reserve Bank of Cleveland, OFR senior researchers addressed several topics relating to 

the transparency and modeling of systemic risk. The OFR Director Richard Berner opened the 

event with “Financial Stability: Using the Tools, Finding the Data.” 

Remarks at other events included:

 Global Association of Risk Professionals (14th Annual Risk Management Convention, 

March 2013)

 Richard Berner, Director, Keynote Speaker

 Jonathan Sokobin, past Acting Deputy Director for Research and Analysis 

 SIFMA Tech conference in July 2013

 Matthew Reed, Chief Counsel

 

7 The OFR website can be found at http://www.treasury.gov/initiatives/wsr/ofr/Pages/default.aspx.
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In addition, Director Berner participated in the Federal Reserve Bank of NY/GARP Risk Forum 

in New York in November 2013.

Throughout FY 2013, the OFR was involved in discussions of several risk management topics 

with members of the Financial Services and Risk Management Subcommittee of the Financial 

Research Advisory Committee. The subcommittee made recommendations on specific risk 

management topics to consider undertaking in the near term.

Financial Research Advisory Committee 

In November 2012, the OFR established the Financial Research Advisory Committee, made up 

of 30 distinguished professionals in economics, data management, risk management, information

technology, and other fields to broaden the OFR’s analytical perspective and help the agency 

meet its mission.8The members include two Nobel laureates in economics, leaders in business 

and nonprofit fields, and prominent researchers at major universities and think tanks.

The committee first met in December 2012 in Washington, D.C. At the second committee 

meeting in New York City in August 2013, OFR Director Berner cited the Office’s five strategic 

priorities for the coming year and noted that the advisory committee’s three subcommittees had 

been meeting since December to develop substantive recommendations to help the Office fulfill 

its mandate. The full committee adopted the recommendations during the meeting and presented 

them to the OFR

8. Building the OFR

During FY 2013, the OFR continued to build core operational systems and procedures, guided by 

the need to have cost-effective, transparent, and accountable structures that reflect best practices. 

The Office recognizes the value of balancing speed with prudence as the organization continues 

to mature —building core functions with ongoing review and improvements based on early 

experience.

Strategic and Performance Management

The OFR follows the principles and practices of the Government Performance Results 

Modernization Act of 2010. The OFR has implemented a comprehensive planning system that 

ties together strategic planning, operational planning (budget, performance, and human 

resources), execution, monitoring, and review, including internal reviews of projects, programs, 

priorities, and strategies. In addition, the OFR is collecting data on its performance measures, 

which are tied to strategic goals (see Section 3). 

We are now developing a new strategic plan for FY 2015-19. In this long-term strategic 

planning process, we are assessing the organization internally and externally to devise a plan that 

will more fully articulate the vision and mission of the Office, as well as its goals and strategies 

for the next four years. We anticipate releasing the new plan in early calendar year 2014.

Financial Management and Operational Controls 

 

8

http://www.treasury.gov/initiatives/ofr/about/Pages/Financial-Research-Advisory-Committee.aspx
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The OFR’s financial activities are subject to general Treasury financial management controls and 

protocols and are reviewed as part of the consolidated audit of Departmental Offices within the 

Treasury. The OFR has internal policies and procedures to support sound and efficient 

operations and rigorous internal controls. We have also developed additional controls, project 

review mechanisms, and decision-making protocols to ensure that spending is well targeted and 

effectively monitored. The Office also has established internal protocols to help ensure prompt 

responses to Treasury’s Office of the Inspector General, the Council of Inspectors General, and 

the Government Accountability Office. 

Human Capital Planning 

As detailed in the OFR’s FY 2013 Annual Report to Congress on Human Capital Planning9, the 

Office has made progress in building its core staff and defining the frameworks and processes 

required for effective and efficient human resource management. By using multiple recruitment 

methods, the OFR is making strong progress in building a talented staff dedicated to strengthening understanding of risks to financial stability. Strides have been made toward ensuring that 

employees are provided with training and development opportunities to enhance existing skill 

sets, as well as to acquire new ones for professional growth. The OFR is also using workforce 

flexibilities to promote employee satisfaction, engagement, and work/life balance. 

The OFR will continue to review and elaborate its human capital strategies as part of its strategic 

planning framework to make sure they align with the Office’s mission, vision, goals, and 

objectives. 

1.B.2 Workforce Plan Steady State

Staff Recruitment

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act, which established 

the Office, emphasized the use of efficient 

and innovative tools to attract and retain a 

talented workforce, including fellowships and 

internships. Using multiple recruitment 

methods, we have built a talented staff 

dedicated to strengthening the understanding 

of risks to financial stability. 

A critical priority for the Office as we work 

to achieve full staffing levels is recruiting 

specialized and highly trained employees necessary to fulfill our mission.

The Office’s senior management team currently comprises the Director, a Deputy Director for 

each of the two centers (Data Center, and Research and Analysis Center), and six Chiefs (Chief 

Data Officer, Chief Technology Officer, Chief of Analytical Strategy, Chief of External Affairs, 

 

9 OFR’s FY 2013 Annual Report to Congress on Human Capital Planning can be found at:

http://www.treasury.gov/initiatives/ofr/about/Documents/OFR_HumanCapitalReport2013_FINAL_12-19-2013.pdf 
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Chief Operating Officer, and Chief Counsel). OFR Deputy Directors and Chiefs oversee 18 

sections led by 17 Associate Directors.

About half of our staff will ultimately be in the Data Center, split between its data and 

technology groups. The Research and Analysis Center will constitute approximately 22 percent 

of the staff. The Office of the Director and support functions (Counsel, External Affairs, and 

Operations) will make up the remaining 27 percent.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Office of Financial Research FTE Amount

FY 2014 Estimated Budget 209 85,975 

Total FY 2015 Base 209 85,975 

Program Changes:

Program Adjustment* 35 5,774 

Personnel Steady State 35 6,400 

Non-Personnel Steady State (626)

Total FY 2015 Estimated Budget 244 91,749 

2A – Budget Increases and Decreases Description

Program Adjustments.................+$5,774,000/+35 FTE (Direct)

Personnel Steady State + $6,400,000/ +35 FTE

OFR will continue its growth toward full staffing by FY 2014-2015. 

Non-personnel Steady State - $626,000/ +0 FTE

Although uncertainty remains about medium-term IT needs to meet the OFR’s data-related and 

analytical mandate, the Office expects the need for funding for initial investments in IT 

infrastructure to decrease beginning in FY 2014-2015. Regular steady state operational costs, 

recurring network costs, and periodic one-time costs for IT and systems are expected to continue 

over time (for example, to meet data storage growth needs as more data sources are identified).

2B – Appropriations Language and Explanation of Changes

The OFR receives no appropriations from Congress. 

2C – Legislative Proposals

The OFR has no legislative proposals.
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2.2 – Operating Levels Table

Dollars in Thousands

Office of Financial Research FY 2013 FY 2014 FY 2015

Object Classification A Actual Estimated Estimated

11 Full-time permanent 15,339 27,141 31,787

12 Personnel benefits 4,885 7,381 9,135

Total Personnel and Benefits Compensation 20,224 34,522 40,922

21 Travel and transportation of persons 246 375 330

23.1 Rental payments to GSA 3,266 3,700 3,700

23.3 Communication, utilities, and misc charges 1,451 5,757 6,854

24 Printing and reproduction 24 120 120

25.1 Advisory and Assistance Services 12,455 10,455 5,137

25.2 Other Services from Non-Federal Sources 766 0 0

25.3 Other Goods and Services from Federal Sources 9,462 11,050 11,170

26 Supplies and materials 3,916 6,660 8,150

31 Equipment 13,495 13,336 15,366

Total Non-Personnel 45,081 51,453 50,827

Total Budgetary Resources $65,305 $85,975 $91,749 

Budget Activities:

Data Center 37,619 46,489 49,315

Research Center 4,733 7,712 9,948

Operations and Support Services B22,953 31,774 32,486

Total Budgetary Resources $65,305 $85,975 $91,749

FTE 66 26 35 

A Salary and benefits include direct OFR staff only. Object Classification 25.0, “Contractual Services,” and expenditures of “Operations and 

Support Services” include substantial reimbursable support received from Treasury’s Departmental Offices; personnel benefits services 

through the Office of the Comptroller of the Currency; and services from the Bureau of Fiscal Service Administrative Resource Center 

including Human Resource services, procurement services, and financial management services. 

B Effective FY 2013, Operations and Support Services include two offices formerly located in the Data Center. The FTE totals and 

estimated budget amounts reflect this organizational change.
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Section 3 – Budget and Performance Plan and Report

($91,749,000 from Assessments):

As noted in Section 1, the complex, highly specialized mission of the OFR and the scope of the task 

to establish the Office from the ground up both dictate that the OFR take a careful, prudent approach 

to its budget and funding. To stand up the OFR effectively, the Office is tightly linking its

expenditures to its mission, ensuring that it is a good steward of the funds entrusted to the Office.

FY 2013 Expenditures

Specific FY 2013 expenditures by budget activity included:

 Data Center expenditures focused on: (1) establishing a secure, short-term infrastructure for 

IT and business systems to support the OFR’s initial data and analytical functions, (2) 

launching the OFR’s intranet and collaboration platform, which also supports the secure 

sharing of information with the Council and its member agencies, (3) developing a design 

and support strategy for the OFR’s long-term IT infrastructure, including those related to 

information security programs (with related implementation expenditures expected to ramp

up in FY 2013), (4) defining the OFR’s data management model, and (5) conducting initial 

data acquisitions and creating an inventory of Council information.

 With the costs associated with infrastructure, analytical tools and data for research covered 

under the Data Center, Research and Analysis costs include salaries and benefits, as well as 

work arrangements with outside researchers and the partnership with the National Science 

Foundation. 

 Operations and Support Services activities include (1) administrative support services, travel, 

supply, and equipment costs, and (2) costs for the rent and renovation of long-term 

permanent office space in Washington, D.C. The relatively high cost of contracts required 

for the build out the OFR long-term IT infrastructure (Table 2.2, Object Classification 25.3) 

reflects the OFR’s business model to leverage existing administrative resources in Treasury 

and other agencies. Specifically, administrative support services include expenses related to 

reimbursable support from Treasury’s Departmental Offices; personnel benefits services 

through the Office of the Comptroller of the Currency; and services from the Bureau of 

Public Debt Administrative Resource Center including human resource services, 

procurement services, and financial management services.

FY 2014 and FY 2015 Expenditures

The OFR will continue its prudent approach to expenditures as it grows in FY 2014 and 

FY 2015, with these expenditures closely tied to the goals and implementation priorities outlined 

in Section 1. The primary source of expenditure growth in FY 2014 and FY 2015 will be salary 

and benefits as the size of the OFR workforce grows. 
OFR - 17

3.1 OFR Total Expenditures/Obligations (FY 2011 – FY 2015)

 Data Center. Acquisition of hardware, software, and analytic tools for OFR’s business 

systems infrastructure and analytic environment (including network upgrades) is ramping up 

in FY 2014 and will continue into FY 2015 before beginning to decline. The OFR will focus 

in later years on maintenance, growth, and periodic enhancements. Expenses for data 

subscriptions will continue to rise as the OFR staff grows.

 Research and Analysis. Work arrangements with outside academics, and the partnership 

with the National Science Foundation to support ad hoc and on-going research projects are 

expected to increase modestly in FY 2014.

 Operations and Support Services. The OFR will continue to utilize existing Treasury 

infrastructure to minimize administrative costs. The build-out of a small satellite office in 

New York City to support interaction with New York-based market participants, researchers, 

regulators, and data providers that was undertaken in FY 2013 will continue in FY 2014.

Assessments

Section 155 of Public Law 111-203, the Dodd-Frank Wall Street Reform and Consumer 

Protection Act (the Dodd-Frank Act), directs the Secretary of the Treasury to collect assessments 

equal to the total expenses of the Office of Financial Research (OFR) from bank holding 

companies with total consolidated assets of $50 billion or greater and nonbank financial 

companies supervised by the Board of Governors of the Federal Reserve System (the Board). 

Included in the expenses of the OFR are expenses of the Financial Stability Oversight Council 

(FSOC) and certain expenses of the Federal Deposit Insurance Corporation (FDIC) under section 

210(n) of the Dodd-Frank Act. 

The regulation establishing the assessment schedule, as required under the Dodd-Frank Act, was 

published in the Federal Register on May 21, 2012 and became effective July 20, 2012. Under 

the rule, each company’s total assessable assets are determined based on data available on 

$14 

$40 

$65 

$86 $92 

 $-

 $20

 $40

 $60

 $80

 $100

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Millions

OFR Total Expenditures/Obligations

(FY 2011 - FY 2015)
OFR - 18

May 31 and November 30 each year, with assessments collected on September 15 (or next 

business day) and March 15 (or next business day). Companies are authorized under the rule to 

submit requests for redetermination if they wish to contest their eligibility as an assessable 

company or their total assessable assets. Assessment fees are collected in the Financial Research 

Fund (FRF), a fund established under Dodd-Frank Act to pay the expenses of the OFR.

The fee rate for each period will be set based on projected total resources required to replenish

the FRF to a level equivalent to the sum of:

 The next six months of budgeted operating expenses of the OFR and the Council; 

 The next 12 months of budgeted capital expenses of the OFR and the Council, because of the 

variability in the timing of such expenses; and 

 The amount necessary to reimburse the FDIC for certain implementation expenses.

As such, any resources remaining in the FRF at the end of one assessment period (carryover) 

reduce the amount needed to be collected to replenish the FRF to this level in the next period. 

The initial assessment occurred on July 20, 2012, was based on a fee rate of 0.000007659412. 

For the initial assessment, the OFR was funded at a level of $128 million. Treasury did not need 

to replenish resources in the Financial Research Fund until September 2013 because FY 2012 

expenditures were lower than projected. Consequently, Treasury did not issue an assessment on 

March 15, 2013. The September 2013 assessment was based on a fee rate of .000002021158. 

Performance Measurement

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 

established five strategic goals to help achieve its mission. 

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 budget performance measure targets in FY 2013. The OFR is 

continuing to monitor performance measures in FY 2014. The Office may revise them based on 

the strategic planning process. 

The Office 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 Office discontinued one other measure in 

FY 2014 because the activities associated with it were completed in FY 2013. The OFR will 

continue to review all measures as the organization matures, and revise them as necessary.
OFR - 19

Table 3.2 OFR Foundational Performance Measures

Goal Performance Measures Budget Activity*

Council Support  Percent of responses to Council data 

and research requests that meet 

delivery targets 

 Percent of project milestones met for 

establishment of an interagency data 

inventory program. (Discontinued as 

of FY 2015. )

 Data Center 

 Data Center

Data Standards  Percent of milestones met in 

information standards strategy. 

(Discontinued as of 2015.)

 Data Center

Center of 

Excellence for 

Research 

 Number of Research and Analysis

products made public

 Number of Research and Analysis

products coauthored or pursued in 

collaboration with outside researchers, 

government agencies, or others

 Research and Analysis

 Research and Analysis 

Public 

Information

 Percent increase in the number of 

visitors to the OFR website

 Operations and Support

Services

Building the 

OFR

 Percent of OFR implementation 

priorities completed. (Discontinued as 

of FY 2015.)

 Cost of the OFR relative to total 

assessed assets per billion dollars

assessed 

 Total staff hired compared to targets

 Operations and Support 

Services

 Operations and Support 

Services

 Operations and Support 

Services

* A lead budget activity is assigned for any measures that cut across multiple business units

3A – Data Center

($49,315,000 from Assessments):

The Dodd-Frank Act requires the Data Center, on behalf of the Council, to collect, validate, and 

maintain all data necessary to carry out the duties of the OFR. Under this mandate, the Data 

Center provides data services to the Research and Analysis Center, Council member agencies, 

and others to:

 increase efficiency in data acquisition and management;

 reduce redundant reporting requirements across the regulatory system (including through 

more effective data sharing arrangements); and 

 secure sensitive data.

Standards for financial data will benefit regulators and financial market participants by making 

data aggregation easier, improving analysis, and reducing costs associated with data collection. 
OFR - 20

3.A.1 – Data Center Budget and Performance Report and Plan

Dollars in thousands

Data Center

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Estimated Estimated

Expenses/Obligations $0 $5,260 $19,303 $37,619 $46,489 $49,315

Budget Activity Total $0 $5,260 $19,303 $37,619 $46,489 $49,315

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

Actual Actual Actual Actual Target Target

Percent of Responses to Council Data and Research Requests 

That Meet Delivery Targets N/A N/A N/A 94% 85% 85%

Percent of Project Milestones Met for Establishment of an 

Interagency Data Inventory Program 

N/A N/A N/A 88% DISC DISC

Percent of Milestones Met in Information Standards Strategy N/A N/A N/A 100% 100% DISC

Key: DISC - Discontinued; B - Baseline

3A.1 Support for the Council

The OFR has established one performance measure in FY 2014 and FY 2015 linked to achieving 

its goal of supporting the Council by securely providing high-quality financial data and analysis

needed to monitor threats to financial stability, as follows:

1. Percent of responses to Council data and research requests that meet delivery targets. This 

measure is an indicator of the OFR’s effectiveness in terms of timeliness. A clear focus on 

the efficiency and quality of its operations is particularly important in the early stages of 

establishing the OFR’s delivery of data services. To meet this measure, the Data Center 

coordinates with the Research and Analysis Center to respond to requests.

3A.2 Data Standards

The OFR has established one performance measure linked to achieving its goal to develop and 

promote data-related standards and best practices, as follows:

 Percent of milestones met in information standards strategy. This measure indicates progress 

toward implementing the LEI (through the late 2012 endorsement of the Regulatory 

Oversight Committee charter, the December 2012 creation of the legal framework for the 

Central Operating Unit, and the March 2013 launch of the global system). The measure also 

refers to the OFR’s broader agenda to promote information standards.

3B – Research and Analysis

($9,948,000 from Assessments):

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;

 monitor, investigate, and report on changes in system-wide risk levels and patterns to the 

Council and to Congress; 
OFR - 21

 conduct, coordinate, and sponsor research to support and improve regulation of financial 

entities and markets;

 evaluate and report on stress tests or other stability-related evaluations of financial entities 

overseen by Council member agencies;

 maintain the expertise necessary to support specific requests for advice and assistance from 

financial regulators;

 investigate disruptions and failures in the financial markets, report findings, and make 

recommendations to the Council based on the findings;

 conduct studies and provide advice on the effect of policies related to systemic risk; and

 promote best practices for financial risk management.

To support effective achievement of these objectives, the OFR is establishing forums and 

networks to bring together experts from within and outside the regulatory system. The OFR’s 

Research Seminar Series allows OFR’s research staff opportunities to collaborate with and seek 

feedback from external experts. In addition, through its OFR Working Paper Series and the OFR 

Annual Report, the OFR publishes results of its analysis to be transparent in its operations and 

promote public understanding of threats to financial stability. In FY 2013, the OFR announced a 

partnership with the NSF to promote and support research related to financial stability. This 

program will fund innovative research on approaches to computing and information processing 

to identify and analyze risks to the financial system.

3.B.1 – Research and Analysis Budget and Performance Report and Plan

Dollars in thousands

Research and Analysis

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Estimated Estimated

Expenses/Obligations A$0 $1,069 $3,398 $4,733 $7,712 $9,948

Budget Activity Total $0 $1,069 $3,398 $4,733 $7,712 $9,948

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

Actual Actual Actual Actual Target Target

Number of R&A Products Made Public N/A N/A N/A 10 15 18

Number of R&A Products Co-Authored or Pursued in 

Collaboration with Outside Researchers, Government 

Agencies, or Others

N/A N/A N/A 8 10 12

Key: Discontinued; B – Baseline

A “Research and Analysis” includes only staffing, outside work arrangements, and contracting related to annual report 

production. Costs associated with data, information systems, and analytical tools are under Data Center. 

3B.1 Center of Excellence for Research

The OFR has established two performance measures linked to achievement of its goal to 

establish a Center of Excellence for Research on financial stability and promote best practices for 

financial risk management, as follows:

1. Number of Research and Analysis products made public. This measure indicates the OFR’s

research output, providing a baseline to measure growth following launch of the Working 

Paper Series in FY 2012. 
OFR - 22

2. Number of Research and Analysis products coauthored or pursued in collaboration with 

outside researchers, government agencies, or others. This measure indicates to what degree

outside perspectives inform the OFR’s analysis, a key objective as the OFR builds a culture 

that supports the open exchange of views and cutting-edge research.

3C – Operations and Support Services

($32,486,000 from Assessments):

The category “Operations and Support Services” includes Front Office, Operations, External 

Affairs, and Counsel activities. These activities cover all operational, legal, and administrative 

functions that support the effective, transparent, and well-monitored delivery of the OFR’s 

products related to data, research, and analysis. This includes support provided through 

reimbursable arrangements with Treasury’s Departmental Offices; personnel benefits services 

through the Office of the Comptroller of the Currency; and services from the Bureau of Fiscal 

Service Administrative Resource Center including human resource, procurement, travel, and 

financial management services. 

3.C.1 – Operations and Support Services Budget and Performance Report and Plan

Dollars in thousands

Operations and Front Office A

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Estimated Estimated

Expenses/Obligations $0 $4,700 $16,873 $22,953 $31,774 $32,486

Budget Activity Total $0 $4,700 $16,873 $22,953 $31,774 $32,486

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

Actual Actual Actual Actual Target Target

Percent Increase in the Number of OFR 

Web Page Visitors N/A N/A N/A 1% 15% 5%

Percent of OFR Implementation Priorities 

Completed N/A N/A N/A DISC DISC DISC.

Cost of the OFR Relative to Total Assessed 

Assets, per $Billion Assessed N/A N/A N/A $3,230 $7,700 $7,700

(to be based 

on a 4-year 

rolling 

average)

(to be based 

on a 4-year 

rolling 

average)

Total Staff Hired Compared to Targets N/A N/A N/A 85% 95% 95%

Key: DISC - Discontinued; B - Baseline

A Effective FY 2013, “Operations and Support Services” includes two offices formerly located in the Data Center. The FTEs

and estimated budget amounts reflect this organizational change.

3C.1 Public Information

The OFR has established one performance measure linked to achievement of its goal to provide

the public with key data and analysis while protecting sensitive information, as follows:
OFR - 23

 Percent increase in the number of OFR web page visitors This measure indicates progress in 

increasing awareness of the OFR and its work, recognizing that it is difficult to estimate this 

measure. 

3C.2 Building the OFR

The OFR has established two performance measures linked to achieving its goal to establish the 

OFR as an efficient organization and world-class workplace, as follows: 

1. Cost of the OFR relative to total assessed assets per billion dollars assessed This measure 

indicates cost efficiency of the organization. Over time, the OFR will move to a fouryear moving average to smooth out short-term fluctuations and highlight longer-term 

trends or cycles. 

2. Total staff hired compared to targets This measure shows how effectively the OFR is 

progressing toward target staffing levels.