Executive Summary - 1

FY 2020 EXECUTIVE SUMMARY

FY 2020 President’s Budget Discretionary Appropriation Request

(Dollars in Thousands)

FY 2018 

Enacted (post 

IRS transfer)

2019 Annualized 

CR Rate (post 

IRS transfer)

FY 2019 

Enacted (post 

IRS transfer)

FY 2020 

President's 

Budget

Management & Financial $1,427,355 $1,440,180 $1,458,758 $1,226,811 

Departmental Offices Salaries and Expenses $201,751 $214,576 $214,576 $235,973 

Committee on Foreign Investment in the United States (CFIUS) $0 $0 $0 $20,000 

CFIUS Fees $0 $0 $0 ($10,000)

Subtotal CFIUS Fund1 $0 $0 $0 $10,000 

Terrorism and Financial Intelligence $141,778 $141,778 $159,000 $166,712 

Cybersecurity Enhancement $24,000 $24,000 $25,208 $18,000 

Department-wide Systems and Capital Investments Program $4,426 $4,426 $4,000 $6,118 

Office of Inspector General $37,044 $37,044 $37,044 $37,044 

Treasury IG for Tax Administration $169,634 $169,634 $170,250 $166,000 

Special Inspector General for TARP $34,000 $34,000 $23,000 $17,500 

Community Development Financial Institutions Fund $250,000 $250,000 $250,000 $14,000 

 Bank Enterprise Award, rescind FY 2019 Funding $0 $0 $0 ($25,000)

Financial Crimes Enforcement Network $115,003 $115,003 $117,800 $124,700 

Alcohol and Tobacco Tax and Trade Bureau $111,439 $111,439 $119,600 $115,427 

Bureau of the Fiscal Service $338,280 $338,280 $338,280 $340,337 

Tax Administration2

IRS Taxpayer Services $2,493,554 $2,506,554 $2,491,554 $2,402,000 

IRS Enforcement $4,617,000 $4,660,000 $4,665,600 $4,705,368 

IRS Operations Support $3,890,000 $3,834,000 $3,918,400 $4,075,021 

Subtotal $11,000,554 $11,000,554 $11,075,554 $11,182,389 

IRS Business Systems Modernization $110,000 $110,000 $150,000 $290,000 

Tax Reform Implementation3 $320,000 $77,000 $77,000 $0 

IRS Total Excluding Cap Adjustment $11,430,554 $11,187,554 $11,302,554 $11,472,389 

IRS Cap Adjustment 4 $0 $0 $0 $361,571 

IRS Total, Including Cap Adjustment $11,430,554 $11,187,554 $11,302,554 $11,833,960 

Subtotal, Treasury Appropriations excluding Cap Adjustment 

and TEOAF $12,857,909 $12,627,734 $12,761,312 $12,699,200 

Treasury Forfeiture Fund Permanent Rescission ($1,066,162) ($200,000) ($200,000) $0 

Subtotal, Treasury Appropriations including TEOAF $11,791,747 $12,427,734 $12,561,312 $12,699,200 

Treasury International Programs $1,547,698 $1,547,698 $1,547,697 $1,552,205 

Multilateral Development Banks $1,348,123 $1,348,123 $1,348,122 $1,315,705 

Food Security $30,000 $30,000 $30,000 $0 

Environmental Trust Funds $139,575 $139,575 $139,575 $0 

Office of Technical Assistance $30,000 $30,000 $30,000 $30,000 

International Bank for Reconstruction and Development $0 $0 $0 $206,500 

Total, Treasury Appropriations $13,339,445 $13,975,432 $14,109,009 $14,251,405 

4/ The FY 2020 budget includes a program integrity cap adjustment of $361 million (Enforcement $200 million, Operations Support $162 

million). 

1/ Total CFIUS funding is $40 million - includes $20 million in Departmental Offices and $20 million in the CFIUS fund (with $15 million 

for Treasury). The CFIUS fund will be partially offset by $10 million in user fees. $10 million is the initial estimate for FY 2020 partial year 

fee revenues and are subject to revision once the regulations are finalized. 

2/ FY 2018 post transfer levels include a transfer of $256 million from Taxpayer Services (-$13 million) and Enforcement (-$243 million) 

to Operations Support (+$256 million). FY 2019 annualized CR post transfer levels include a transfer of $200 million from Enforcement to 

Operations Support. FY 2019 enacted includes a transfer of $194 million from Enforcement to Operations Support.

3/ FY 2019 Annualized CR and enacted includes $77 million for Tax Cuts and Jobs Act implementation (Taxpayer Services $65 million, 

Enforcement $12 million).
Executive Summary - 2

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.

OVERVIEW OF REQUEST

The Budget requests $12.7 billion in base discretionary resources for the Department of the 

Treasury’s domestic programs, a $62 million or 0.5 % decrease from the FY 2019 enacted level. 

It also requests $1.6 billion for Treasury’s international programs, a $4.5 million or 0.3 %

increase from the FY 2018 enacted level. The Budget:

• Provides $35 million to fully fund Foreign Investment Risk Review Modernization Act

(FIRRMA) implementation (partially offset by an estimated $10 million in user fees). By 

modernizing the Committee on Foreign Investment in the United States, FIRRMA improves 

the government’s ability to protect national security while preserving the longstanding open 

investment policy of the United States. The budget includes funding for Treasury in the 

Departmental Offices salary and expenses account ($20 million) and creates a new FIRRMAspecific account to address Committee-wide requirements ($20 million, including $15 

million for Treasury-specific information technology requirements and $5 million to support 

government-wide emerging needs). 

• Provides the Internal Revenue Service (IRS) with $11.5 billion from base discretionary 

appropriations to collect more than $3 trillion in revenue, to deliver quality customer service 

to more than 180 million taxpayers, and to begin to transform systems to improve tax 

administration over the long-term. 

o The request provides $290 million for the multi-year IT modernization efforts. Every 

day, private-sector companies introduce technologies that raise Americans’ expectations 

of the services that they receive from their government. While IRS systems process 

trillions of tax dollars and hundreds of millions of interactions every year, some using 

cutting edge technology, it is increasingly difficult to meet these expectations without 

wholesale changes to the core tax systems. IRS’s computing infrastructure cannot keep 

pace with the desire for instantaneous data, real-time interactions, and taxpayer-centered 

customer service. The cost to operate the IRS technology ecosystem is quickly becoming 

prohibitive. The IRS’s ability to successfully modernize information technology is 

critical to our ability to continue to deliver the IRS mission in a cost-effective way.

o In addition to the amounts above, the request includes a program integrity initiative to 

support deficit reduction and protect the integrity of the tax system. The FY 2020 Budget 

investment is $362 million. Additional resources will be provided in later years. These 

investments will generate approximately $47 billion in additional revenue and will cost 

approximately $15 billion, yielding estimated net savings of $32 billion over ten years. 

o The request includes $4.7 billion in the enforcement account to stabilize staffing, increase 

future audit rates, improve predictive modeling of tax compliance risk areas, and increase 

the number of identity theft criminal investigations. 

• Provides $236 million for Treasury Departmental Offices to address priorities: fully fund 

FIRRMA implementation, strengthen financial-sector wide cybersecurity vulnerability 

detection and response, and respond to growing workload with an increase for Domestic 

Finance policy and Management staff. 
Executive Summary - 3

• Provides $167 million for Treasury’s Office of Terrorism and Financial Intelligence (TFI), a 

$25 million increase over the FY 2018 enacted level; and $125 million for the Financial 

Crimes Enforcement Network (FinCEN), a $10 million increase over the FY 2018 enacted 

level. These increases will allow TFI and FinCEN to continue their critical work 

safeguarding the financial system from abuse and combating other national security threats 

using non-kinetic economic tools. These additional resources will be deployed to 

economically isolate rogue regimes, support the Terrorist Financing Targeting Center in 

Saudi Arabia, implement the Countering America’s Adversaries through Sanctions Act, and 

counter the financial networks that support terrorists, organized transnational crime, weapons 

of mass destruction proliferators, and other threats.

• Proposes to transfer all alcohol and tobacco responsibilities from the Department of Justice’s 

Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to Treasury’s Alcohol and 

Tobacco Tax and Trade Bureau (TTB). This transfer would leverage TTB’s resources and 

expertise relating to the alcohol and tobacco industries and allow ATF to continue to focus 

on its firearms and explosives mandates, enabling both agencies to more efficiently and 

effectively carry out their core missions of protecting the public.

• Provides $1.6 billion for Treasury’s International Programs to support the most critical 

investments in multilateral development institutions, while ensuring that U.S. contributions 

are set at an appropriate level relative to our partner countries. The proposed funding level 

meets current year U.S. commitments to international financial institutions and maintains 

funding for the Office of Technical Assistance. The request includes $206.5 million for the 

first of up to six installments for International Bank of Reconstruction and Development 

general and selective capital increases, which upon payment protect U.S. shareholding at the 

institution. 

• Consolidates and streamlines Federal Financial Literacy Education Efforts. The Budget 

proposes that Federal efforts to promote financial literacy be focused on the high-impact 

areas of: basic financial capability, housing, higher education, military and veteran 

programs, and investment and retirement planning. More than 20 Federal agencies have 

some form of financial education or literacy programs. Collectively, Federal agencies spent 

an estimated $250 million on financial literacy and education activities in 2017. 

Streamlining and consolidating programs and activities will be a multi-year effort.

• Proposes to impose appropriate Congressional oversight of the Treasury Financial Stability 

Oversight Council and Office of Financial Research (OFR) by subjecting their activities to 

the normal appropriations process. The Budget continues the reduced level of OFR spending

commensurate with the renewed fiscal discipline being applied across the Federal 

Government.

• Brings accountability and transparency to regulatory oversight functions. The Federal 

Insurance Office within Treasury is coordinating with state insurance regulators and 

insurance industry groups to improve oversight and administration of the Terrorism Risk 

Insurance Program (TRIP), as recommended in Treasury’s October 2017 report to the 

President on asset management and insurance. Treasury is also evaluating reforms, to be 

included in any legislation extending TRIP beyond its current sunset date of December 31, 

2020, to further decrease taxpayer exposure. 
Executive Summary 

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

Departmental Offices Salaries and Expenses 772 91 863 689 52 741 745 52 797 Terrorism and Financial Intelligence 408 36 444 495 36 531 545 36 581 Cybersecurity Enhancement 8 8 19 19 11 11 Office of Inspector General 161 3 164 166 3 169 166 3 169 Treasury Inspector General for Tax Administration 764 2 766 800 2 802 800 2 802 Special Inspector General for TARP 131 131 125 125 95 95 Community Development Financial Institutions Fund 66 66 66 66 42 42 Financial Crimes Enforcement Netw ork 280 1 281 332 1 333 359 1 360 Alcohol and Tobacco Tax and Trade Bureau 475 10 485 507 10 517 507 10 517 Bureau of the Fiscal Service 1,996 11 2,007 2,089 10 2,099 2,031 10 2,041 appropriationsInternal Revenue Service funded from regular 73,518 735 74,253 73,933 521 74,454 72,254 521 72,775 Subtotal, Treasury Appropriated Level 78,579 889 79,468 79,221 675 79,856 77,555 675 78,190 Office of Financial Stability (Administrative Account) 32 32 24 24 20 20 Small Business Lending Fund Program 5 5 4 4 4 4 Capital Magnet Fund 4 4 5 5 6 6 Office of Financial Research 185 185 130 130 145 145 

Financial Stability Oversight Council 13 13 18 18 18 18 Treasury Franchise Fund 1,643 1,643 1,919 1,919 2,023 2,023 Bureau of Engraving and Printing 1,748 1,748 1,836 1,836 1,863 1,863 United States Mint 1,545 1,545 1,705 1,705 1,705 1,705 

Office of the Comptroller of the Currency 3,840 3,840 3,788 3,788 3,788 3,788 Terrorism Insurance Program 4 4 4 4 4 4 IRS Private Collection Agent Program 23 23 112 112 118 118 Subtotal, Treasury Non-Appropriated Level 266 8,776 9,042 297 9,248 9,545 315 9,379 9,694 Total, Treasury 78,845 9,665 88,510 79,518 9,923 89,401 77,870 10,054 87,884 3/ Amounts for the IRS exclude the proposed $362 million program integrity cap adjustment that, if enacted, w ould increase IRS levels by an estimated 1,760 FTE in FY 2020. 2/ IRS FY 2018 Total FTE is overstated in the President's Budget Appendix by 102 FTE as a result of a reporting error in the Business Systems Modernization account. 1/ 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.

2018 Actual 2019 Annualized CR 2020 President's Budget

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing (Direct and Reimbursable)
Executive Summary 

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(Dollars in Thousands)

Treasury Goal/Objective Boost U.S. Economic Growth Promote Financial Stability Enhance National Security Transform Government-wide Financial Stewardship Achieve Operational Excellence Total

Management & Financial $361,458 $29,253 $340,996 $419,497 $75,608 $1,226,811 

Departmental Offices Salaries and Expenses $89,931 $29,253 $39,584 $25,716 $51,490 $235,973 Committee on Foreign Investment in the United States1 $10,000 $10,000 Terrorism and Financial Intelligence $166,712 $166,712 Cybersecurity Enhancement $18,000 $18,000 Department-wide Systems and Capital Investments Program $6,118 $6,118 Office of Inspector General $37,044 $37,044 Treasury Inspector General for Tax Administration $166,000 $166,000 Special Inspector General for TARP $17,500 $17,500 Community Development Financial Institutions Fund2 ($9,900) ($1,100) ($11,000)Financial Crimes Enforcement Network $124,700 $124,700 Alcohol and Tobacco Tax and Trade Bureau $115,427 $115,427 Bureau of the Fiscal Service $340,337 $340,337 

Tax Administration $11,472,389 $11,472,389 

IRS Taxpayer Services $2,402,000 $2,402,000 IRS Enforcement $4,705,368 $4,705,368 IRS Operations Support $4,075,021 $4,075,021 Business Systems Modernization $290,000 $290,000 IRS Cap Adjustment 3 $361,571 $361,571 IRS Total, Including Cap Adjustment $11,833,960 $0 $0 $0 $0 $11,833,960 

Total, Treasury Appropriations Committee Excluding Cap Adjustment and TEOAF $11,833,847 $29,253 $340,996 $419,497 $75,608 $12,699,200 

Treasury International Programs $32,194 $1,520,011 $1,552,205 

Total, Appropriated Level $11,833,847 $61,447 $340,996 $1,939,508 $75,608 $14,251,405 Non-Appropriated Accounts

Office of Financial Stability (Administrative Account) $53,469 $53,469 Terrorism Risk Insurance (Administrative) $3,000 $3,000 Financial Stability Oversight Council $5,244 $5,244 $10,487 Office of Financial Research $37,636 $37,636 $75,271 Bureau of Engraving and Printing $886,887 $886,887 United States Mint $2,728,168 $2,728,168 Office of the Comptroller of the Currency $872,653 $218,163 $1,090,816 Federal Reserve Bank $622,786 $622,786 Reimbursable to the Federal Reserve Banks $170,615 $170,615 Financial Agent Services $848,400 $848,400 

Total, Non-Appropriated Level $4,530,587 $261,042 $3,000 $1,695,270 $0 $6,489,899 Grand Total $16,364,433 $322,489 $343,996 $3,634,778 $75,608 $20,741,304 

FY 2020 President’s 

1/ Total CFIUS funding is $40 million - includes $20 million in Departmental Offices and $20 million in the CFIUS fund (with $15 million for Treasury). The CFIUS fund will be partially offset by $10 million in user fees. $10 million is the initial estimate for FY 2020 partial year fee revenues and are subject to revision once the regulations are finalized. 2/ This reflects a rescission of $25M in the CDFI Bank Enterprise Award Program3/ The FY 2020 budget includes a program integrity cap adjustment of $361 million (Enforcement $200 million, Operations Support $162 million). 

Budget by Strategic Goal
Executive Summary 

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DO CFIUS TFI Cyber DSCIP OIG TIGTA SIGTARP CDFI FinCEN TTB FS IRS Total

FY 2019 Annualized CR Rate $214,576 $0 $141,778 $24,000 $4,426 $37,044 $169,634 $34,000 $250,000 $115,003 $111,439 $338,280 $11,187,554 $12,627,734 

(MCLs)Maintaining Current Levels $1,761 $1,553 $193 $558 $190 $138 $1,194 $1,001 $2,239 $50,565 $59,392 Non-Recurring Costs (22,349) ($4,426) ($26,775)Efficiency Savings/Reinvestment ($1,675) ($3,830) ($109,600) ($115,105)Realignment $1,651 (1,651) $0 

Adjustments to Base $1,737 $0 ($2,277) ($24,000) ($4,426) $193 $558 $190 $138 $1,194 $1,001 $2,239 ($59,035) ($82,488)FY 2020 Base $216,313 $0 $139,501 $0 $0 $37,237 $170,192 $34,190 $250,138 $116,197 $112,440 $340,519 $11,128,519 $12,545,246 

Program Decreases ($281) ($4,697) ($16,832) ($236,182) ($2,226) ($3,013) ($7,915) ($271,146)CFIUS User Fees ($10,000) ($10,000)Program Increases 19,660 20,000 27,211 $18,000 $6,118 88 505 142 44 10,729 6,000 7,733 343,870 $460,100 Rescission (25,000) ($25,000)

Subtotal, Program Changes $19,660 $10,000 $27,211 $18,000 $6,118 ($193) ($4,192) ($16,690) ($261,138) $8,503 $2,987 ($182) $343,870 $153,954 resourcesfunded from discretionary FY 2020 President's Budget 

$235,973 $10,000 $166,712 $18,000 $6,118 $37,044 $166,000 $17,500 ($11,000) $124,700 $115,427 $340,337 $11,472,389 $12,699,200 

Program Integrity Cap Adjustment $361,571 $361,571cap adjustmentincluding program integrity FY 2020 President's Budget 

$235,973 $10,000 $166,712 $18,000 $6,118 $37,044 $166,000 $17,500 ($11,000) $124,700 $115,427 $340,337 $11,833,960 $13,060,771 

(Dollars in Thousands)

Summary of FY 2020 Increases and Decreases
Executive Summary - 7

ORGANIZATION

Treasury is organized into the Departmental Offices, seven bureaus, and three offices of Inspector General. The

Departmental Offices are primarily responsible for headquarters operations and policy formulation, while the bureaus are

the operating units of the organization.
Executive Summary - 8

DEPARTMENTAL OFFICES

Domestic Finance works to preserve

confidence in the U.S. Treasury

securities market, strengthen financial

institutions and markets, and promote access to credit, in

service to long-term economic strength and stability.

Terrorism and Financial Intelligence (TFI) uses unique policy,

intelligence, enforcement and regulatory tools and

authorities to disrupt and disable terrorists, criminals,

and other national security threats while also

safeguarding the financial system against abuse by illicit

actors.

International Affairs protects economic prosperity and

national security by working to foster a most favorable

external environment for sustained jobs and economic

growth.

Tax Policy develops and implements tax policies and

programs, reviews regulations and rulings to administer

the Internal Revenue Code, and provides revenue

estimates for the President’s Budget.

Economic Policy reports on economic developments and

assists in the determination of appropriate economic

policies. It also reviews and analyzes domestic economic

issues and financial market developments.

The Treasurer of the United States serves as a principal

advisor to the Secretary and leads the Office of Consumer

Policy, which provides policy leadership, research, and

analysis to foster economic growth and financial security

for American families in a robust consumer marketplace. 

The Treasurer also oversees the U.S. Mint, including

advising the Secretary on coinage matters and liaising

with the Federal Reserve.

The Office of Management and Chief Financial Officer 

manages the Department’s financial resources and

oversees Treasury-wide programs, including human

capital, organizational performance, information

technology, acquisition, and diversity issues.

The Office of Risk Management oversees the

development and implementation of an

integrated risk management framework

for the Department, advising Treasury leaders on

managing credit, market, liquidity, fraud, operational,

strategic, and reputational risks.

 

Other offices within Departmental Offices include the

General Counsel, Legislative Affairs, and Public Affairs.
Executive Summary - 9

INSPECTORS GENERAL

 

Three Inspectors General – the Office of Inspector General

(OIG), the Treasury Inspector General for Tax Administration

(TIGTA), and the Special Inspector General for the Troubled Asset

Relief Program (SIGTARP) – provide independent audits,

investigations, and oversight of Treasury and our

programs.

BUREAUS

The Alcohol and Tobacco Tax and Trade Bureau (TTB) collects

federal excise taxes on alcohol, tobacco products, firearms,

and ammunition and enforces and administers laws

covering production, use, and distribution of alcohol and

tobacco products.

The Bureau of Engraving and Printing (BEP) develops

and produces U.S. currency notes, as well as secure

documents for government use.

The Financial Crimes Enforcement Network (FinCEN)

safeguards the financial system from illicit use and

combats money laundering. It also promotes national

security through the collection, analysis, and

dissemination of financial intelligence and strategic use of

financial authorities.

The Bureau of the Fiscal Service (Fiscal Service) promotes

financial integrity and operational efficiency by operating

the U.S. government’s collections and deposit systems,

and providing central payment services to the American

public on behalf of federal agencies. It also manages the

collection of delinquent debt, borrows funds needed to

operate the U.S. government through the sale of

marketable and special-purpose U.S. Treasury securities,

and accounts for the resulting debt. Additionally, it

delivers administrative shared services to federal agencies

and provides government-wide accounting and reporting. 

The Internal Revenue Service (IRS) determines, assesses, and

collects U.S. tax revenue and helps taxpayers understand

their tax responsibilities and combats tax-related fraud.

The United States Mint (U.S. Mint) designs, mints, and

issues U.S. circulating, numismatic, and bullion coins,

strikes Congressional gold medals and other medals of

national significance, and maintains physical custody and

protection of most of the nation’s gold and all its silver

assets.

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

regulates, and supervises national banks and federal

savings associations as well as federal branches and

agencies of foreign banks to ensure that they operate in a

safe and sound manner, provide fair access to financial

services, treat customers fairly, and comply with

applicable laws and regulations.
Executive Summary - 10

TREASURY STRATEGIC MANAGEMENT

FRAMEWORK

The Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010 require

agencies to identify goals, report progress against targets, and conduct data-driven reviews. These practices

serve two key purposes for stakeholders within and outside of the organization — to assess the organization’s

health and impact, and to enhance effective decision-making and strategy, including resource allocation. In this

spirit, Treasury developed a strategic framework using best-in-class organizational performance practices to

help achieve our strategic goals and objectives.

ORGANIZATIONAL PERFORMANCE REVIEW CYCLE

Our organizational performance reviews provide a regular forum for open dialogue and coordination between

bureau and departmental policy office management and leadership. We bring together different perspectives to

set and align priorities, identify and solve problems, review agency performance, and drive results. The cycle

integrates statutory requirements to conduct quarterly performance reviews of agency goals and a Strategic

Objective Annual Review (SOAR), which analyzes cross-cutting performance and identifies a set of strategic

objectives as priority focus areas.

At designated points throughout the fiscal year, we set annual priorities, evaluate progress, problem-solve

around risks and challenges, and assess funding options in the context of performance outcomes. Treasury’s

process and framework for managing to our strategic objectives and performance outcomes is described in Table

1 below. 

TABLE 1: STRATEGIC FRAMEWORK Sessions

Fall

(October – November)

Winter

(February – March)

Spring

(April – May)

Summer

(June – July)

Focus

Organizational Performance SOAR Organizational Performance Budget

Chair

Assistant Secretary for

Management/Performance

Improvement Officer

(ASM/PIO)

ASM/PIO and Deputy PIO ASM/PIO ASM/PIO and Budget

Officer

Goals/Outcomes

• Review prior year’s

performance at the

bureau/office level

• Set priorities for year

ahead

• Recognize successes

• Identify shortfalls/

accountability

• Evaluate cross-agency

progress toward strategic

objectives

• Identify strategic shifts/

validate Treasury priorities

• Outline potential topics for

annual review with the

Office of Management and

Budget (OMB)

• Assess progress on priorities

• Identify necessary

adjustments/near-term

improvements

• Surface problems or

assistance needed

• Recognize successes

• Identify shortfalls/

accountability

• Connect priorities to

future funding

• Explore performance

impacts

• Strengthen information

technology

acquisition

budgeting

accountability
Executive Summary - 11

FY 2018 – 2022 STRATEGIC FRAMEWORK

The strategic framework comprises the Department’s FY 2018–2022 strategic goals and objectives and

FY 2018–2019 Agency Priority Goals (APGs), which align to specific objectives. All bureaus and offices align

their programs and performance within this framework. FY 2018 marks the first year of implementing our new

strategic plan, which emphasizes achieving important outcomes through a series of focused objectives and

underlying strategies.

Strategic Goals Strategic Objectives/APGs

Contributing

Bureaus/Offices

Economic

Goal 1: Boost U.S.

Economic Growth

1.1: Tax Law Implementation

 Aligned APG: Reducing Refund Fraud

1.2: Strong Economic Fundamentals

1.3: Trusted Currency and Services

 Aligned APG: Improved Business Qualification Process

1.4: Free and Fair Trade

Domestic Finance

International Affairs

Tax Policy

Treasurer

Economic Policy

IRS

BEP

U.S. Mint

TTB

OCC

Goal 2: Promote

Financial Stability

2.1: Housing Finance Reform

2.2: Foreign Exchange Practices

2.3: Foreign Technical Assistance

2.4: Financial Sector Critical Infrastructure and Cybersecurity

Domestic Finance

International Affairs

Management

OCC

Security

Goal 3: Enhance

National Security

3.1: Strategic Threat Disruption

 Aligned APG: U.S. and Mexico Strategic Dialogue on Illicit Finance

3.2: Anti-Money Laundering and Combating Financing of Terrorism Framework

3.3: Economic Strength and National Security

TFI

FinCEN

International Affairs

Economic Policy

OCC

Financial

Goal 4: Transform

Government-wide

Financial

Stewardship

4.1: Financial Data Access and Use

4.2: Debt Management

4.3: Federal Financial Performance

Domestic Finance

International Affairs

IRS

Fiscal Service

Management

Goal 5: Achieve

Operational

Excellence

5.1: Workforce Management

5.2: Treasury Infrastructure 

5.3: Customer Value

All Offices and

Bureaus, led by the

Office of

Management

The Government Performance and Results Act (GPRA) and the GPRAMA established the need for agencies to 

identify performance goals, report progress against targets, and conduct data-driven reviews. These practices 

serve two key purposes for stakeholders within and outside of the organization: to assess the organization’s 

health and impact and to inform decision-making and strategy (including effective resource allocation). In this 

spirit, we developed a strategic framework supported by best-in-class organizational performance practices to 

help achieve the Department’s strategic objectives.

Our organizational performance reviews provide a regular forum for open dialogue and coordination among 

Department, bureau, and office leadership and bringing together different perspectives to set and align 

priorities, identify and solve problems, review agency performance goals, and drive results. The cycle integrates 
Executive Summary - 12

statutory requirements to conduct performance reviews of agency strategic objectives, agency priority goals, and 

cross-agency priority goals.

AGENCY PRIORITY GOALS

Reducing Refund Fraud: The filing of fraudulent individual and business tax returns by identity thieves 

continues to have a significant impact on tax administration. Identity theft tax fraud occurs when an individual 

uses another person’s or business’ name and Taxpayer Identification Number to file a fraudulent tax return for 

the purpose of obtaining a tax refund. For processing year 2015, the IRS estimates between $2.24 billion and 

$3.34 billion of identity theft tax refunds were unprotected (i.e., refunds were paid on probable identity theft 

refund fraud claims and are likely unrecoverable). For processing year 2016, the IRS estimates between $1.68 

billion and $2.31 billion of identity theft tax refunds were unprotected. That same year, the IRS successfully 

protected between $10.56 billion and $10.61 billion in identity theft refunds (i.e., IRS defenses prevented 

payment). The IRS is using data analytics and public-private partnerships to reduce the amount of unprotected 

identity theft tax refunds paid by two percent by December 31, 2019. Progress toward this goal is measured 

using the IRS’s annual Taxonomy, a statistical estimation of the amount of revenue protected and unprotected 

from identity refund fraud based on analysis and sampling of returns. Although the Taxonomy provides a 

statistical estimation of fraud detection, the detection methods are evaluated continuously for opportunities to 

improve detection or reduce taxpayer burden. 

Improved Business Qualification: Ongoing growth in the alcohol beverage industry in recent years has resulted

in an increased volume in permit applications for new alcohol producers. This growth in workload has

contributed to delayed permit approvals that exceeded TTB’s service standards. Through targeted process

improvements, TTB has achieved significant improvement, far exceeding the 20% reduction in processing times

targeted for this APG. Reaching the goal of consistently achieving the service standard for original permit

applications has proven difficult, with application volumes high and continuing to increase. Despite these

challenges, TTB made a significant year-to-year improvement, increasing the percent of permits processed

within the 75-day standard from 48% in FY 2017 to 71% in FY 2018. TTB will seek to make performance

improvements in FY 2019 through several key strategies, including ongoing enhancements to the new Permits

Online system, increased familiarity with the new system by both TTB staff and industry, continued process

improvements, and planned rulemaking to streamline the permit application. TTB continues to target high

electronic filing rates to support timely processing, and tracks system satisfaction rates to ensure its eGov

systems effectively serve and meet the expectations of its customers. System satisfaction rates ended the year

at 77%, below the target of 80%; however, TTB expects satisfaction to improve in FY 2019 as prospective and

current TTB permittees adapt to the new system features and functionality, and as TTB continues to make

progress in timely processing. 
Executive Summary - 13

U.S. and Mexico Strategic Dialogue on Illicit Finance: Established in 2014, the Strategic Dialogue on Illicit

Finance (SDIF) was created in an effort to deliver greater economic growth and opportunity for the citizens of

Mexico and the United States by safeguarding our financial systems against the threats of illicit finance. SDIF

will increase U.S. and Mexican effectiveness against transnational criminal organizations (TCOs), including

drug trafficking organizations (DTOs), operating in the United States and Mexico through (SDIF) that focuses

on taking enforcement actions, sharing key illicit finance information, safeguarding our financial systems

against threats, and increasing the effectiveness and capacity of AML/CFT regimes. Since the 2018 Mexican

presidential election, SDIF progress has slowed due to the transition of the newly elected presidency. TFI will

continue to monitor Mexico’s progress in appointing the new permanent or temporary SDIF team and will

subsequently evaluate next steps for this initiative.

In addition to these Department-level reviews, bureaus and offices validate performance data each quarter and 

many run their own internal performance reviews.1

ENTERPRISE RISK MANAGEMENT

FRAMEWORK

 

1/ The FY 2018 Verification and Validation Report is available at: https://www.treasury.gov/about/budgetperformance/annual-performance-plan/Documents/Treasury_Measure_Verification_and_Validation.pdf
Executive Summary - 14

OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control

provides guidance to federal managers to effectively manage risks to achieve strategic objectives. Management,

together with the Chief Risk Officer (CRO), is responsible for establishing a governance structure to effectively

implement a robust process of risk management and internal control. Successful implementation requires us to

establish and foster an open, transparent culture that encourages people to communicate information about

potential risks and other concerns. 

The CRO monitors regular Risk Management Committee meetings that unite the Departmental Offices to

discuss top risks to Departmental goals and objectives, response strategies and lessons learned. The Office of

Risk Management (ORM) has also established an Enterprise Risk Management (ERM) Council, chaired by the

CRO, which brings together risk managers from each of our bureaus on a regular basis to establish a

Department-wide framework and taxonomy for ERM, and share best practices. ORM works with the offices and

bureaus across Treasury to monitor and annually update our risk profile.

Beyond its work at Treasury, ORM leads an interagency ERM community of practice including officials from 30

agencies. This group grew from ORM’s efforts to support federal agencies in their implementation of ERM,

including the July 2016 publication of the Playbook: Enterprise Risk Management (ERM) for the U.S. Federal

Government. This government-wide working group meets on a bimonthly basis to discuss common risks and

various methods of implementing the guidelines of the Circular.

ENTERPRISE RISKS AND CHALLENGES

Through the FY 2018 SOAR and enterprise risk management process, we identified the following cross-cutting

operational risks. 

Workforce Management: Difficulties hiring and managing the Treasury workforce may create knowledge gaps

and a lack of expertise in several areas important to our mission. The increased pressures on existing staff can

cause high attrition and low engagement. The current human capital system impedes our ability to shape our

workforce and realign it to mission needs.

Reshaping Priorities: We have many extremely important ongoing missions and are also at the forefront of

several new initiatives to improve and keep our economy on a stable footing. Due to uncertain funding amounts

and timing, new or changing legislative requirements, and reduced capacity, there is a risk that we will not be

as agile as we should be in balancing new innovations or initiatives with existing requirements or projects.

Evolving Cyber Climate: Treasury and the whole financial sector face increasing attacks from cyber criminals

and state actors attempting to disrupt or steal data from sensitive systems. The tactics, techniques, and

procedures used by perpetrators of these incidents are constantly evolving.

Limited Analytic Capabilities: Aging infrastructure can impede analytics capabilities, program innovation, and

improved delivery of products and services.

Critical System Failures: Reliance on aging technologies could lead to system outages or failures that disrupt

core mission work.
Executive Summary - 15

Human Capital Plan Implementation

In FY 2020, Treasury’s Human Capital Community will continue its efforts towards a 

competency-based management approach. In alignment with these efforts, below are some of 

the strategies that are the focus for FY 2019:

• Continued implementation of the Integrated Talent Management System (DASHRCHCO)

• Explore designing a mentoring program (DASHR-CHCO)

• Develop comprehensive training policy (DASHR-CHCO)

• Finalize competency approach and begin development of competency library(ies) 

(DASHR-CHCO)

• Establish career ladders to support succession planning for PT/NRC (TTB)

• Increase the quality and quantity of the applicant pool (BEP)

• Enhance hiring strategies and process to better screen applicants (IRS)

• Institutionalize Knowledge Management as a workforce solution (IRS)

• Continue to strengthen the EEO/Diversity & Inclusion Programs across the service (IRS)

• Institute succession planning in support of Mint’s Future State to mitigate the loss of 

institutional knowledge (Mint)

• Support employees impacted by the FY 2019 relocation (BFS)

• Engage in collective bargaining with NTEU over new Performance Management 

Program including mandatory Diversity and Inclusion elements.

• Close vacancy gaps by executing the FY 2019 hiring surge (FinCEN)

Summary of Management and Performance Challenges

OIG and TIGTA have identified the most significant management and performance challenges 

facing the Department, in accordance with the Reports Consolidation Act of 2000. These 

challenges do not necessarily indicate deficiencies in performance; some represent inherent risks 

that require continuous monitoring. Refer to Section C of Part 3, Other Information, in the 

FY 2018 Treasury Agency Financial Report (AFR) for a detailed discussion of these challenges, 

including our progress toward addressing them.2 GAO releases a government-wide high-risk list 

every two years. Treasury has shared responsibility for one risk area and lead responsibility in 

another.

OIG - Identified Management Challenges:

• Operating in an Uncertain Environment;

• Cyber Threats;

• Anti-Money Laundering and Terrorist Financing/Bank Secrecy Act Enforcement; and 

• Efforts to Promote Spending Transparency and to Prevent and Detect Improper 

Payments.

TIGTA - Identified Management Challenges:

• Security Over Taxpayer Data and Protection of IRS Resources;

• Implementing the Tax Cuts and Jobs Act and Other Tax Law Changes;

• Identity theft and Impersonation Fraud;

• Providing Quality Tax Pay Service;

• Upgrading Tax Systems and Expanding Online Services;

 2 The FY 2018 AFR is available at https://home.treasury.gov/system/files/266/Treasury-FY-2018-AFR-111518.pdf. 

The response letters are on pages 184-189.
Executive Summary - 16

• Improving Tax Reporting and Payment Compliance;

• Reducing Fraudulent Claims and Improper Payments;

• Impact of Global Economy on Tax Administration;

• Protecting Taxpayer Rights; and 

• Achieving Program Efficiencies and Cost Savings.

GAO - Identified High-Risk Areas:

• Modernizing the U.S Financial Regulatory System (OFR/FSOC/OCC/Federal Reserve)

• Enforcement of Tax Laws (IRS)

Good Accounting Obligation in Government Act (GAO-IG Act)

• In January 2019, the GAO-IG Act become law, requiring each agency to include in its 

annual budget justification, a report that identifies each public GAO and OIG/TIGTA 

recommendation that has remained unimplemented for one year or more from the annual 

budget justification submission date. 

Please see https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance

for more information.