Message from the Secretary of the Treasury

Dear Member: 

On behalf of President Biden, it is my pleasure to submit the Department of Treasury’s budget

request for Fiscal Year 2022. This request comes during a time of four converging crises: ending

the COVID-19 pandemic, providing economic relief, tackling climate change, and advancing 

racial equity. The budget proposes investments that address each of these areas. Additionally,

the Fiscal Year (FY) 2022 President’s Budget invests in the core foundations of our country’s 

strength and advances key Treasury Department priorities that will be reflected in the upcoming 

Treasury Strategic Plan for FYs 2022-2026, including ensuring that all Americans are treated 

fairly by our tax system, expanding programs that offer loans to start-ups and small businesses to 

promote affordable housing and community revitalization projects, and closing loopholes that 

allow illicit actors to evade scrutiny, mask their dealings, and shield illegal activity.

Treasury’s request includes $13.2 billion for the IRS to ensure increased oversight of highincome and corporate tax returns to ensure compliance; provide new and improved online tools 

for taxpayers to communicate with the IRS easily and quickly; and improve telephone and inperson taxpayer customer service, including outreach and assistance to underserved 

communities. In addition, the American Families Plan includes proposals to overhaul tax 

administration and provide the IRS the resources and information it needs to address tax evasion. 

All told, these reforms will generate an additional $700 billion in tax revenue over the course of 

a decade, net of the investments made.

The budget provides $330 million, an increase of 22.2 percent above the 2021 enacted level, to 

support expanding the role of Community Development Financial Institutions (CDFI) with the 

goal of empowering the nation’s most vulnerable communities, including many rural and Tribal 

communities. This investment builds on an unprecedented level of support for the CDFI 

industry in 2021, including more than $3 billion in direct funding, $9 billion for investments in 

CDFIs and Minority Depository Institutions (MDI), and provisions in the American Rescue Plan 

encouraging CDFI participation in the $10 billion State Small Business Credit Initiative.

The budget includes $191 million for the Financial Crimes Enforcement Network, $64 million 

above the 2021 enacted level, to create a database as required by statute, that tracks the 

ownership and control of certain companies and organizations and helps combat the use of

complex corporate structures to shield illegal activity.

The FY 2022 Budget includes the information required for the Annual Performance Report. I

have validated the accuracy, completeness, and reliability of the performance data in this report.

Sincerely,

Janet L. Yellen t L Y l

Executive Summary - 1 

FY 2022 EXECUTIVE SUMMARY 

President’s Budget Discretionary Appropriation Request 

Dollars in Thousands

FY 2020 Enacted 

(post IRS 

transfer)3

FY 2021 

Enacted3

FY 2021 Enacted 

(post IRS 

transfer)3

FY 2022 

President's 

Budget

Management & Financial $1,538,377 $1,554,281 $1,554,281 $1,841,265 

Departmental Offices Salaries and Expenses $228,373 $233,000 $233,000 $270,669 

Committee on Foreign Investment in the United States (CFIUS) Fund1 $20,000 $20,000 $20,000 $20,000 

CFIUS Fees1 ($10,000) ($20,000) ($20,000) ($20,000)

Subtotal CFIUS Fund (non add)1 $10,000 $0 $0 $0 

Office of Terrorism and Financial Intelligence $169,712 $175,000 $175,000 $185,192 

Cybersecurity Enhancement Account $18,000 $18,000 $18,000 $132,027 

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

Office of Inspector General $41,044 $41,044 $41,044 $42,362 

Treasury Inspector General for Tax Administration $170,250 $170,250 $170,250 $175,762 

Special Inspector General for TARP $22,000 $19,000 $19,000 $17,000 

Community Development Financial Institutions Fund $262,000 $270,000 $270,000 $330,000 

Financial Crimes Enforcement Network $126,000 $126,963 $126,963 $190,539 

Alcohol and Tobacco Tax and Trade Bureau $119,600 $124,337 $124,337 $131,330 

Bureau of the Fiscal Service $340,280 $345,569 $345,569 $360,266 

Digitization of Unredeemed Matured Savings Bonds Records $25,000 $25,000 $25,000 $0 

Tax Administration2

Taxpayer Services $2,535,554 $2,555,606 $2,587,606 $2,940,876 

Enforcement $4,909,500 $5,212,622 $5,004,622 $5,462,823 

Operations Support $3,885,000 $3,928,102 $4,104,102 $4,448,195 

Business Systems Modernization $180,000 $222,724 $222,724 $305,032 

IRS Total Excluding Program Integrity Allocation Adjustment (PIAA) $11,510,054 $11,919,054 $11,919,054 $13,156,926 

PIAA $0 $0 $0 $416,897 

IRS Total, Including PIAA Adjustment $11,510,054 $11,919,054 $11,919,054 $13,573,823 

Subtotal, Treasury Appropriations excluding PIAA and TEOAF $13,048,431 $13,473,335 $13,473,335 $14,998,191 

Treasury Forfeiture Fund Total $0 ($75,000) ($75,000) $0 

Temporary Rescission $0 $0 $0 $0 

Permanent Rescission $0 ($75,000) ($75,000) $0 

Subtotal, Treasury Appropriation including TEOAF and excluding PIAA $13,048,431 $13,398,335 $13,398,335 $14,998,191 

Treasury International Programs $1,736,780 $1,890,319 $1,890,319 $3,278,034 

Multilateral Development Banks $1,522,205 $1,481,244 $1,481,244 $1,953,746 

Food Security $30,000 $32,500 $32,500 $43,000 

IMF PRGT Load Subsidy Cost $0 $0 $0 $2,000 

IMF PRGT Grant $0 $0 $0 $100,000 

Environmental Trust Funds $139,575 $139,575 $139,575 $1,074,288 

Office of Technical Assistance $30,000 $33,000 $33,000 $38,000 

Debt Restructuring - Tropical Forest Conservation Act $15,000 $15,000 $15,000 $15,000 

Debt Service Suspension Initiative and Common Framework $0 $0 $0 $52,000 

Somalia - Bilateral Debt Relief $0 $78,000 $78,000 $0 

Sudan - Bilateral and Multilateral Debt Relief4 $0 $111,000 $111,000 $0 

Total, Treasury Appropriations excluding PIAA and TEOAF $14,785,211 $15,363,654 $15,363,654 $18,276,225 

Total, Treasury Appropriations excluding PIAA $14,785,211 $15,288,654 $15,288,654 $18,276,225 

Total, Treasury $14,785,211 $15,288,654 $15,288,654 $18,693,122 

1/ The overall request for Treasury's CFIUS costs is $39.57 million, which includes $15 million from the CFIUS Fund and $24.57 million from Departmental Offices 

Salaries and Expenses. CFIUS fee estimates assume full year actual collections of $20 million in FY 2021. The Congressional Budget Office estimated $5 million to 

be collected in the Consolidated Appropriations Act, PL 116-260 due to the timing of the rulemaking final notice and other implementation factors.

2/ FY 2021 Enacted (est. post IRS Transfer) includes a proposed transfer of $208 million from Enforcement to Taxpayer Services ($32 million) and Operations 

Support ($176 million).

3/ Excludes funding provided for COVID-19 Pandemic response. 

4/ In FY 2021, Congress also appropriated $120 million to Treasury's debt restructuring account for clearing Sudan's arrears with the IMF on an emergency basis. 
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 $15.0 billion in base discretionary resources for the Department of the 

Treasury’s domestic programs, a $1.5 billion or 11.3 percent increase from the FY 2021 enacted 

level. 

• Provides the IRS with $13.2 billion from base discretionary appropriations to collect more 

than $3 trillion in revenue, process more than 245 million tax returns, ensure compliance; 

provide new and improved online tools for taxpayers to communicate with the IRS easily and 

quickly; and improve telephone and in-person taxpayer customer service, including outreach 

and assistance to underserved communities. 

o The request provides $305 million for multi-year modernization efforts to deliver 

long-term, systemic transformation of service and compliance for millions of 

taxpayers, small businesses, and corporations, as well as put IT operations and 

maintenance costs on a sustainable path. The IRS will continue developing a case 

management solution to replace legacy systems, new digital service options 

including electronic notices and live chat assistance, and new web applications to 

streamline taxpayer filing, payment, and authentication.

o The request proposes $176 million for Taxpayer First Act implementation to 

expand digital services, provide taxpayers with a seamless user experience, and 

develop and implement strategies for reaching underserved communities.

o The request includes $5.5 billion in the enforcement account to continue building 

compliance staffing and protect billions of dollars in revenue. The IRS is one of 

the best investments in the federal government with an overall return on 

investment of $5 for every $1 invested, not including significant deterrence 

effects. Every dollar invested in enforcement requires a funding increase in 

operations support for technology and administrative costs. 

• In addition to the amounts above, the request includes a proposal to invest $80 billion in the 

IRS to overhaul tax administration and provide it the information it needs to address tax 

evasion. This investment is split between a program integrity allocation ($417 million in FY 

2022) and a mandatory provision and is expected to yield approximately $700 billion in total 

revenue over ten years including the impact of the enforcement increases and the new 

information reporting requirements. 

• Includes $132 million for the Department-wide Cybersecurity Enhancement Account to 

address Department-wide breach mitigation activities due to SolarWinds and other emerging 

risk areas. 

• Requests $190.5 million for the Financial Crimes Enforcement Network (FinCEN), a $63.5 

million increase over the FY 2021 enacted level. This increase will allow FinCEN to fully 
Executive Summary - 3

implement the provisions in the Anti-Money Laundering Act of 2020 (AML Act) and the 

Corporate Transparency Act (CTA). This includes the design and development of an 

information technology database system to collect and safely secure beneficial ownership 

information. In addition, the budget includes resources to address the expansion of FinCEN’s 

role in administering the Bank Secrecy Act to include innovation, regulatory reform, and 

industry engagement. 

• Includes $330 million for the Community Development Financial Institutions (CDFI) Fund, a 

$60 million increase over FY 2021 enacted and the highest level in the history of the Fund. 

The request supports the need for increased capital flow to communities and geographies 

where access to capital is least efficient and most needed – including rural areas and 

persistent poverty counties, and in communities that are experiencing long term and 

structural impacts from historically discriminatory economic and housing policies. In 

addition, the budget proposes to increase funding for the Capital Magnet Fund by $12 billion 

over ten years through an American Jobs Plan initiative.

• Provides $270.7 million for Treasury Departmental Offices (including $24.6 million for the 

Committee on Foreign Investment in the United States) to continue to support pandemic 

recovery efforts, address climate change, income equality and racial equity, and restore the 

Treasury Department staffing levels to support key programs and other emerging risks. 

• Requests $25 million for the Special Inspector General for Pandemic Recovery by 

repurposing unobligated CARES Act balances. 

• Proposes legislation establishing a manufacturing financing facility to support increasing the 

size, competitiveness, and innovation of the U.S. manufacturing sector. The program will 

provide capital support including direct lending, loan guarantees, and potentially publicprivate risk-sharing models. Investments under the facility will attract private capital where 

risk otherwise precludes sufficient private market participation and will target building of 

long-term sustainable, globally competitive manufacturing production.
Executive Summary 

-4

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

Departmental Offices Salaries and Expenses2 638 39 677 721 39 760 836 39 875 Terrorism and Financial Intelligence 477 39 516 551 35 586 575 41 616 Cybersecurity Enhancement 4 4 6 6 10 10 Office of Inspector General 150 150 180 180 190 190 Treasury Inspector General for Tax Administration 731 2 733 760 2 762 760 2 762 Special Inspector General for TARP 80 80 74 74 68 68 Community Development Financial Institutions Fund 70 70 82 82 89 89 Financial Crimes Enforcement Network 264 1 265 300 3 303 380 3 383 Alcohol and Tobacco Tax and Trade Bureau 484 11 495 508 12 520 508 12 520 Bureau of the Fiscal Service 1,499 358 1,857 1,577 412 1,989 1,617 412 2,029 Internal Revenue Service funded from regular appropriations3 73,240 1,179 74,419 73,409 2,359 75,768 79,348 935 80,283 Subtotal, Treasury Appropriated Level 77,637 1,629 79,266 78,168 2,862 81,030 84,381 1,444 85,825 Office of Financial Stability (Administrative Account) 14 14 11 11 10 10 Small Business Lending Fund Program 3 3 3 3 3 3 Capital Magnet Fund 5 5 5 5 6 6 Office of Financial Research 102 102 128 128 145 145 Financial Stability Oversight Council 15 15 18 18 21 21 Treasury Franchise Fund 1,945 1,945 2,154 2,154 2,219 2,219 Bureau of Engraving and Printing 1,740 1,740 1,863 1,863 1,863 1,863 United States Mint 1,539 1,539 1,671 1,671 1,671 1,671 Office of the Comptroller of the Currency 3,589 3,589 3,523 3,523 3,523 3,523 Terrorism Insurance Program 5 5 7 7 8 8 IRS Private Collection Agent Program 274 274 434 434 434 434 Special Inspector General for Pandemic Recovery 2 2 66 66 76 76 Subtotal, Treasury Non-Appropriated Level 420 8,813 9,233 672 9,211 9,883 703 9,276 9,979 Total, Treasury 78,057 10,442 88,499 78,840 12,073 90,913 85,084 10,720 95,804 3/ Amounts for the IRS include 86 FTE funded from user fees in FY 2022 and exclude the proposed $417 million program integrity allocation adjustment that, if enacted, would increase IRS levels by an estimated 2,554 FTE in FY 2022. 

2020 Actual 2021 Operating Plan1 2022 President's Budget

Fiscal Year Comparison of Full

1/ Excludes funding provided for COVID-19 Pandemic response. 2/ FY 2022 Direct FTE includes 18 positions funded by transfer from CFIUS Fund.

-Time Equivalent (FTE) Staffing (Direct and Reimbursable)
Executive Summary 

-5

DO CFIUS2 TFI Cyber DSCIP OIG TIGTA SIGTARP CDFI FinCEN TTB FS IRS Total

FY 2021 Operating Plan1 $233,000 $20,000 $175,000 $18,000 $6,118 $41,044 $170,250 $19,000 $270,000 $126,963 $124,337 $370,569 $11,919,054 $13,493,335 

Maintaining Current Levels (MCLs) $6,540 $0 $4,817 $0 $0 $1,258 $5,300 $544 $0 $3,210 $3,885 $10,234 $327,995 $363,783

Pay Annualization $349 $234 $75 $349 $39 $137 $196 $557 $22,442 $24,378

Pay Raise $3,160 $2,119 $677 $3,165 $313 $1,109 $1,774 $5,049 $182,239 $199,605

FERS Contribution Increase $1,163 $836 $284 $1,177 $120 $517 $995 $1,676 $67,673 $74,441 

Non-Pay $1,868 $1,628 $222 $609 $72 $1,447 $920 $2,952 $55,641 $65,359 

Non-Recurring Costs (1,390) ($18,000) ($6,118) ($25,000) ($50,508)Efficiency Savings/Reinvestment ($5,428) ($5,585) ($11,013)Other Adjustment/Initiative Annualization $5,428 $5,428 

Adjustments to Base $5,150 $0 $4,817 ($18,000) ($6,118) $1,258 $5,300 $544 $0 $3,210 $3,885 ($14,766) $322,410 $307,690FY 2022 Base $238,150 $20,000 $179,817 $0 $0 $42,302 $175,550 $19,544 $270,000 $130,173 $128,222 $355,803 $12,241,464 $13,801,025 

Program Decreases ($1,709) ($2,544) ($4,253)CFIUS User Fees ($20,000) ($20,000)Program Increases/Reinvestments $32,519 $5,375 $132,027 $6,118 1,769 212 60,000 $60,366 $3,108 $4,463 $915,462 $1,221,419 

Subtotal, Program Changes $32,519 ($20,000) $5,375 $132,027 $6,118 $60 $212 ($2,544) $60,000 $60,366 $3,108 $4,463 $915,462 $1,197,166 FY 2022 President's Budget funded from discretionary resources

$270,669 $0 $185,192 $132,027 $6,118 $42,362 $175,762 $17,000 $330,000 $190,539 $131,330 $360,266 $13,156,926 $14,998,191 

Program Integrity Allocation Adjustment $416,897 $416,897 FY 2022 President's Budget including program integrity allocation adjustment

$270,669 $0 $185,192 $132,027 $6,118 $42,362 $175,762 $17,000 $330,000 $190,539 $131,330 $360,266 $13,573,823 $15,415,088 

Summary of FY 2022 Increases and Decreases

(Dollars in Thousands)1/ Excludes funding provided for COVID-19 Pandemic response. 2/ CFIUS Fund enacted levels are net appropriations including user fees.
Executive Summary - 6

ORGANIZATION

Treasury is organized into the Departmental Offices, seven bureaus, and four 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 - 7 

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, provides 

revenue estimates for proposals, and receipt 

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, diversity

issues, and CARES Act Operations.

 

Other offices within Departmental Offices include

the General Counsel, Legislative Affairs, and Public

Affairs. 

INSPECTORS GENERAL

Four Inspectors General – the Office of Inspector

General (OIG), the Treasury Inspector General for Tax 

Administration (TIGTA), the Special Inspector General

for the Troubled Asset Relief Program (SIGTARP), and 

the Special Inspector General for Pandemic Recovery – 

provide independent audits, investigations, and

oversight of Treasury and our programs.
DEPARTMENT OF THE TREASURY 8 

BUREAUS

The Alcohol and Tobacco Tax and Trade Bureau 

(TTB) collects federal excise taxes on alcohol,

tobacco, firearms, and ammunition and enforces 

and administers laws covering the 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, 

combats money laundering and its related crimes

including terrorism; promoting national security

through the strategic use of financial authorities 

and the collection, analysis, and dissemination of 

financial intelligence. 

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, 

while aiming to prevent tax-related fraud.

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

and issues U.S. circulating coins, as well as

numismatic and bullion coins; in addition to

striking Congressional gold medals and other 

medals of national significance. It 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 - 9

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

allow stakeholders within and outside of the organization to assess the organization’s health and impact, while

promoting effective decision-making, and improved strategy execution and resource allocations. In this spirit,

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

achieve our strategic goals and objectives. Currently, we are developing Treasury’s FY 2022-2026 Strategic

Plan.

ORGANIZATIONAL PERFORMANCE REVIEW CYCLE

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

bureau and Departmental Offices’ management and leadership. We bring together different perspectives to set

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

performance review cycle integrates statutory requirements to conduct quarterly reviews of agency results

toward goals, with an annual exercise to validate our supporting objectives through our Strategic Objective

Annual Review (SOAR) process. We also integrate portfolio reviews of programs within our performance review

cycle activities, as required by the Program Management Improvement Accountability Act (PMIAA). The SOAR

process includes analyzing cross-cutting performance and identifying a set of strategic objectives as priority

focus areas Treasury also leverages the strategic management framework, including the SOAR, to gather

information on evidence-building activities across the department and identify agency priority questions for the

learning agenda.

At designated points throughout the fiscal year, we set annual priorities, evaluate progress against goals and

objectives, discuss new strategies to improve program outcomes, and assess funding options to increase results

for the agency. Treasury’s process and framework for managing to our strategic objectives and performance

outcomes are described in Table 1 on the following page. In addition to these department-level reviews, bureaus 

and offices validate performance data each quarter and many run their own internal performance reviews1.

 

1 The FY 2020 Verification and Validation Report is available at: https://home.treasury.gov/about/budgetfinancial-reporting-planning-and-performance/budget-requestannual-performance-plan-and-reports
Department of Treasury – Executive Summary - 10

Table 1: Strategic Framework Sessions

Fall

(October – November)

Winter

(February – March)

Spring

(April – May)

Summer

(June – July)

FocusOrganizational 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

• Recognize successes

• Set priorities for year

ahead

• Identify shortfalls/risks;

accountability; assess

organizational health

• Deep dives on select

critical programs/projects

• Evaluate cross-agency

progress toward strategic

objectives

• Identify strategic shifts/

validate Treasury priorities

Outline potential topics

for annual review with

OMB

• Issue-based sessions: Dive

deep on cross-cutting

issues identified in the

SOAR with relevant

leadership; surface

problems and needed

assistance, identify nearterm improvement

strategies

• Program-based sessions:

check in on critical

programs/projects

identified in the SOAR as

needing a deep dive with

Treasury leadership;

identify assistance needed

• Connect priorities to

future funding

• Align funding to

performance

impacts and risk

mitigation

• Strengthen IT

acquisition,

budgeting, and

accountability

• Identify efficiencies

and redundancies in

request

• Update list of critical

programs/projects

based on budget

requests

To close out the FY 2018-2022 Strategic Plan, Treasury used the FY 2021 SOAR to determine the final status of 

the FY 2018 – 2022 Strategic Objectives, designating each objective as “sunset” or “re-focused,” based on 

whether sufficient progress was made towards the desired outcomes and the extent to which the area remains a 

priority for the coming years. Additionally, Treasury completed a scan of the agency’s internal and external 

environment to also inform the FY 2021 SOAR, during which Treasury identified proposed goals and objectives 

for the FY 2022-2026 Strategic Plan (including promoting equitable economic recovery and growth, tackling 

climate change, and workforce equity). The Annual Performance Plan will be updated in FY 2023 to reflect the 

final strategic plan.

IN THE FIRST QUARTER OF FY 2021, OMB ISSUED AN UPDATED TO CIRCULAR A-11, REMOVING THE REQUIREMENT TO

REPORT ON PROGRESS TOWARDS FY 2020 – FY 2021 AGENCY PRIORITY GOALS (APGS). TREASURY IS CURRENTLY IN THE

PROCESS OF IDENTIFYING POTENTIAL APGS FOR FY 2022 AND FY 2023, IN ALIGNMENT WITH THE PROPOSED GOALS AND

OBJECTIVES FOR THE FY 2022 – 2026 STRATEGIC PLAN.
Department of Treasury – Executive Summary - 11

ENTERPRISE RISK MANAGEMENT

FRAMEWORK

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, as well as an enterprise-wide risk profile. 

Successful implementation requires us to establish and foster an open, transparent culture that encourages

people to communicate information about potential risks and other concerns that impact our programs and

operations.

The CRO meets regularly with senior leaders to discuss top risks to critical programs, systems, projects, and

priorities, including response strategies. The Office of Risk Management (ORM) has also established an

Enterprise Risk Management (ERM) Council, chaired by the Deputy CRO, which brings together risk managers

from each of our bureaus and policy offices on a bi-monthly basis to share best practices, and discuss risks. 

ORM works with the bureaus and policy offices 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

approximately 50 federal agencies. This group grew from ORM’s efforts to support 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 bi-monthly basis to

discuss common risks and various methods of implementing the guidelines of the Circular.

ENTERPRISE RISKS AND CHALLENGES

Through the FY 2020 SOAR and enterprise risk management process, we identified the following cross-cutting

operational risks.

Evolving Cyber Climate: Treasury, the U.S. government, and the whole financial sector face growing

complexities rooted in technology and the increased use of attacks from cyber criminals and state actors that

threaten the confidentiality, integrity, or availability of sensitive information housed within our information

systems. These malign efforts also challenge the effective operations of our financial sector firms. On December

11, 2020, Treasury was notified by a service provider of malicious activity related to services provided to the

Department. Treasury is still assessing the overall impact, if any of this breach to its financial management and

other systems. Based on assessments performed this far, we are not aware of any evidence that the breach

impacted the accuracy of our financial information presented herein.

Significant Disruptions to Operations: Treasury could face significant disruptions to operations due to natural

disasters, terrorist events, pandemics, or lapses in appropriations, resulting in the inability to successfully

deliver on mission. These potential disruptions may impose challenges for employees, contractors, and

taxpayers, and may constrain progress in critical areas.
Department of Treasury – Executive Summary - 12

Workforce Management: Treasury’s mission capability may be eroded due to operational challenges in human

resources, such as: recruitment, training and development, personnel security, and diversity and inclusion.

These challenges may be intensified when paired with changing mission and skill requirements.

Data Analytics Capabilities, Sharing, and Infrastructure: Treasury’s ability to support critical decisions with

data may be negatively affected by a lack of data accessibility and reliability, inability to successfully use and

interpret the data, or inability to process or analyze data due to insufficient or aging infrastructure.

Procurement, Acquisition, and Vendors: Treasury may be unable to acquire necessary products and services,

initiate work under contracts, and effectively monitor contract execution due to supply chain vulnerabilities

such as supplier risk, single vendors, lost time, and inefficient contracts. This may result in a failure to deliver

on mission needs

Prioritizing Objectives to Effectively Leverage Limited Resources: Treasury maintains a variety of important

programs and services, while being at the forefront of new and evolving initiatives to improve our economy and 

keep it on a stable footing. Due to uncertain funding amounts and timing, new or changing legislative 

requirements, and reduced capacity, Treasury may not be agile enough to sufficiently balance new initiatives 

with existing requirements or projects.

ADDITIONAL INFORMATION

HUMAN CAPITAL PLAN IMPLEMENTATION

In FY 2022, 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 2022:

• Develop and implement a curriculum to aide in the development of diversity, equity, and inclusion 

competencies for employees at all levels. (DASHR-OCHCO, OCRD, OMWI)

• Continue the evaluation and design of Training and Development Programs (OIG)

• Implement an HR Office Performance and Accountability section (OIG)

• Continue the development and implementation of effective workforce planning processes (TTB)

• Develop a hiring plan for high-risk/critical positions (BEP)

• Implement strategies to improve the FEVS Engagement Index (BEP)

• Continue implementing enterprise Workforce Planning (IRS)

• Assess customer satisfaction and modernize the employee exit survey by collaborating with customers 

to identify areas for improvements. (TIGTA)

• Ensure the EEO Director and Human Capital Director meet regularly to assess whether personnel 

programs, policies and procedures conform to EEOC laws, instructions and management directives. 

(TIGTA)

• Implementation of NDAA to include the Direct Hire Authority. Hire Mission Critical and Mission 

Support positions using DHA. (FinCEN)
Department of Treasury – Executive Summary - 13

• Increase outreach by developing and/or strengthening partnerships with veteran’s organizations and 

Historically Black Colleges and Universities (FinCEN)

• Retention as we prepare for sunset (SIGTARP)

• Preparing employees for careers beyond SIGTARP (SIGTARP)

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 B of Part 3, Other Information, in the FY 2020 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 

• COVID-19 Pandemic Relief (New)

• Operating in an Uncertain Environment (Repeat)

• Cyber Threats (Repeat)

• Anti-Money Laundering/ Terrorist Financing and Bank Secrecy Act Enforcement (Repeat)

• Efforts to Promote Spending Transparency and to Prevent and Detect Improper Payments (Repeat)

• Information Technology Acquisition and Project Management (Repeat)

TIGTA – Identified Management Challenges 

• Responding to the COVID-19 Pandemic;

• Enhancing Security of Taxpayer Data and Protection of IRS Resources;

• Implementing Tax Law Changes;

• Addressing Emerging Threats to Tax Administration;

• Supporting an Enhanced Taxpayer Experience;

• Modernizing IRS Operations;

• Improving Tax Reporting and Payment Compliance;

• Reducing Fraudulent Claims and Improper Payments;

• Increasing International Tax Compliance; and

Protecting Taxpayer Rights.GAO – Identified High-Risk Areas

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

• Enforcement of Tax Laws (IRS).

2 The FY 2020 AFR is available at https://home.treasury.gov/system/files/266/Treasury-FY-2020-AFR.pdf. The 

response letters are on pages 231-241.
Department of Treasury – Executive Summary - 14

GOOD ACCOUNTING OBLIGATION IN GOVERNMENT ACT (GAO-IG ACT)

The Good Accounting Obligation in Government Act (the Act) requires each Federal agency to include, in its 

annual budget justification, a report that identifies each public recommendation issued by the Government 

Accountability Office (GAO) and the agency's inspector(s) general (IGs) that has remained unimplemented for 

one year or more from the budget justification submission date. In compliance with the Act, Treasury has 

included a report listing each public recommendation issued by GAO, Treasury Office of Inspector General 

(OIG), and Treasury Inspector General for Tax Administration (TIGTA). For recommendations with which 

Treasury agreed, this report provides timelines for full implementation of the planned corrective actions (PCAs). 

For recommendations with completed PCAs, this report indicates the status as "Implemented and Awaiting 

Auditor Verification." For recommendations with which Treasury disagreed or did not implement corrective 

actions due to budgetary constraints or other factors, this report indicates their status as either "Rejected" or 

"On Hold," respectively. For recommendations where Treasury did not formally respond or take action, this 

report indicates “No Action Taken.” 

The Act also requires a reconciliation between the agency records of unimplemented recommendations and each 

IGs' Semiannual Report to Congress (SAR). Treasury IGs use the same system (Treasury’s Joint Audit 

Management Enterprise System (JAMES)) for the reporting of unimplemented recommendations in the SAR. 

In addition, Treasury IGs have direct access to JAMES and regularly review and validate the recommendation 

implementation status recorded in JAMES by conducting corrective action verifications and follow-up audits. A 

reconciliation table is provided as part of this report to illustrate that the discrepancies between this report and 

the SAR are due to differences in reporting criteria. 

The information used to create this report is based on JAMES and GAO’s recommendations database available 

on www.gao.gov. 

Reporting Methodology and Report Structure 

This report includes GAO, OIG, and TIGTA recommendations issued between 2/1/2013 and 1/31/2020 (7 years 

per Treasury’s record retention policy) that remained unimplemented for one year or more from the planned 

fiscal year 2022 budget justification submission date. 

The report has five parts: 

Appendix 1: A report listing GAO recommendations and their implementation status. 

Appendix 2: A report listing OIG recommendations and their implementation status.

Appendix 3: A report listing TIGTA recommendations and their implementation status.

Appendix 4: A reconciliation of this report and the IGs’ SARs. 

Appendix A: A listing of acronyms used throughout this report.
Department of Treasury – Executive Summary - 15

Status of Unimplemented Recommendations

Out of a total of 482 unimplemented recommendations, 231 have corrective actions in progress, 181 have been 

implemented and are awaiting auditor verification, and 70 are in “rejected,” “on hold,” or “no actions taken” status. 

Unimplemented Recommendations By Audit Area

Out of a total of 482 unimplemented recommendations, the top audit areas of Tax Administration and 

Compliance, Financial Statements, Information Technology, and Administration of Program Operations account 

for 90% of all unimplemented recommendations.

79

100

52

180

1

50

4

16

0

20

40

60

80

100

120

140

160

180

200

GAO OIG TIGTA

Corrective Actions in Progress

Implemented and Awaiting Auditor

Verification

Rejected, On Hold, or No Action

Taken

7

11

12

15

64

101

124

148

0 20 40 60 80 100 120 140 160

Human Capital

Improper Payments

 Other Financial Matters

(e.g. Lending, Debt Management, etc.)

Terrorism and Financial Crime

Administration of Program Operations

Information Technology

Financial Statements

Tax Administration and Compliance
Department of Treasury – Executive Summary - 16

 

EVIDENCE ACT

The Foundations for Evidence-Based Policymaking Act ("Evidence Act"), Public Law 115-435, takes steps to 

advance evidence-building functions in the Federal government. The law builds on existing Federal policies and 

data infrastructure investments to support information quality, access, and use. The Evidence Act challenges 

agencies to rethink how they are currently using and organizing evidence. An evidence-building activity section 

is provided in the Annual Performance Plan and Report section of each budget chapter (Section II, part D). This 

section provides an overview of the major evidence-building activities currently taking place and planned for the 

following fiscal year. Additionally, this section describes the estimated level of resources, relative level of effort 

devoted to each type of evidence-building activity. Finally, the evidence tables highlight the various ways in 

which evidence generated within Treasury is used in key policymaking and decision-making processes, and by 

internal and external stakeholders.

Prior to the passage of the Evidence Act, Treasury did not have an agency-wide evidence or evaluation 

community or governance structure. Treasury’s components have varying levels of maturity in evidencebuilding practices, with some bureaus having long-standing research or analytics functions, and others having 

minimal resources devoted to evidence-building. Additionally, the institution of the Data Governance Board, 

chaired by the Chief Data Officer, has provided a forum for the coordination of evidence and data issues at the 

enterprise level. Across the four types of evidence-building activities, Treasury’s bureaus and offices spend the 

most time and resources on analysis and research. Evidence generated through evaluation, research, analysis, 

and statistical activities is integrated into key policymaking and decision-making processes throughout the 

department. Evidence is used by stakeholders within Treasury and by external partners including other federal 

agencies and unaffiliated academic researchers. 

IDEA ACT

As required by section 3(b)(2) of Public Law 115-336, 132 Stat. 5025-5028, the 21st Century Integrated Digital 

Experience Act (21st Century IDEA or the Act), Treasury will provide a report to Congress highlighting progress 

across the enterprise and an integrated approach to modernize agency websites and digital services. This report

will include major accomplishments and continued progress in design standardization, bureau website and 

application modernization, and IDEA compliance for recovery efforts. As required in Section 4(d), Treasury will 

also continue to digitize all paper-based forms related to serving the public and centralize access to these forms.

Please see https://home.treasury.gov/system/files/286/2020-Treasury-Report-to-OMB-21st-Century-IDEAFINALv.pdf for more information. 

MACHINE READABLE SUMMARY TABLES

Treasury has developed, for online posting, machine-readable files of the budget summary tables in the 

executive summary chapter of the FY 2022 Congressional Justification. Please see

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budget-requestannualperformance-plan-and-reports for more information. 
Department of Treasury – Executive Summary - 17

Summary of FY 2022 Appropriations Language

Below is a summary of proposed Treasury appropriations language changes from the FY 2021 

enacted bill. Please note that brackets indicate which material will be deleted, and italics indicate 

which material will be inserted.

DEPARTMENTAL OFFICES

SALARIES AND EXPENSES

For necessary expenses of the Departmental Offices including operation and maintenance of the 

Treasury Building and Freedman's Bank Building; hire of passenger motor vehicles; 

maintenance, repairs, and improvements of, and purchase of commercial insurance policies for, 

real properties leased or owned overseas, when necessary for the performance of official 

business; executive direction program activities; international affairs and economic policy 

activities; domestic finance and tax policy activities, including technical assistance to State, 

local, and territorial entities; and Treasury-wide management policies and programs activities, 

[$233,000,000] $270,669,000: Provided, That of the amount appropriated under this heading—

(1) not to exceed $350,000 is for official reception and representation expenses; (2) not to exceed 

$258,000 is for unforeseen emergencies of a confidential nature to be allocated and expended 

under the direction of the Secretary of the Treasury and to be accounted for solely on the 

Secretary's certificate; and (3) not to exceed [$24,000,000] $34,000,000 shall remain available 

until September 30, [2022]2023, for— (A) the Treasury-wide Financial Statement Audit and 

Internal Control Program; (B) information technology modernization requirements; (C) the audit, 

oversight, and administration of the Gulf Coast Restoration Trust Fund; (D) the development and 

implementation of programs within the Office of Cybersecurity and Critical Infrastructure 

Protection, including entering into co- operative agreements; (E) operations and maintenance of 

facilities; and (F) international operations. 

OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE

SALARIES AND EXPENSES

For the necessary expenses of the Office of Terrorism and Financial Intelligenceto safeguard the 

financial system against illicit use and to combat rogue nations, terrorist facilitators, weapons of

mass destruction proliferators, human rights abusers, money launderers, drug kingpins, and other

national security threats,[ $175,000,000,] $185,192,000 of which not less than $3,000,000 shall 

be available for addressing human rights violations and corruption, including activities 

authorized by the Global Magnitsky Human Rights Accountability Act (22 U.S.C. 2656 note):

Provided, That of the amounts appropriated under this heading, up to $10,000,000shall remain

available until September 30, [2022] 2023.

CYBERSECURITY ENHANCEMENT ACCOUNT

For salaries and expenses for enhanced cybersecurity for systems operated by theDepartment of

the Treasury, [$18,000,000] $132,027,000, to remain available until September 30, [2023] 2024: 

Provided, That such funds shall supplement and not supplant any other amounts made available

to the Treasury offices and bureaus forcybersecurity: Provided further, That of the total amount
Department of Treasury – Executive Summary - 18

made available under thisheading [$1,000,000] $4,000,000 shall be available for administrative

expensesfor the Treasury Chief Information Officer to provide oversight of the investments

made under this heading: Provided further, That such funds shall supplement and not supplant 

any other amounts made available to the Treasury Chief Information Officer.

DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAM

For development and acquisition of automatic data processing equipment, software,and services

and for repairs and renovations to buildings owned by the Departmentof the Treasury, 

$6,118,000, to remain available until September 30, [2023] 2024:Provided, That these funds

shall be transferred to accounts and in amounts as necessary to satisfy the requirements of the

Department's offices, bureaus, and other organizations: Provided further, That this transfer

authority shall be in addition to anyother transfer authority provided in this Act: Provided 

further, That none of the funds appropriated under this heading shall be used to support or 

supplement "In- ternal Revenue Service, Operations Support" or "Internal Revenue Service,

BusinessSystems Modernization". 

OFFICE OF THE INSPECTOR GENERAL

SALARIES AND EXPENSES

For necessary expenses of the Office of Inspector General in carrying out theprovisions of

the Inspector General Act of 1978, [$41,044,000] $42,362,000, including hire of passenger

motor vehicles; of which not to exceed $100,000 shall beavailable for unforeseen 

emergencies of a confidential nature, to be allocated and expended under the direction of the

Inspector General of the Treasury; of which upto $2,800,000 to remain available until

September 30, [2022] 2023, shall be foraudits and investigations conducted pursuant to 

section 1608 of the Resources andEcosystems Sustainability, Tourist Opportunities, and 

Revived Economies of the Gulf Coast States Act of 2012 (33 U.S.C. 1321 note); and of which

not to exceed $1,000 shall be available for official reception and representation expenses.

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES

For necessary expenses of the Committee on Foreign Investment in the United States, 

$20,000,000, to remain available until expended: Provided, That the chair-person of the 

Committee may transfer such amounts to any department or agency represented on the 

Committee (including the Department of the Treasury) subject to advance notification to the 

Committees on Appropriations of the House of Representatives and the Senate: Provided

further, That amounts so transferred shall re-main available until expended for expenses of

implementing section 721 of the Defense Production Act of 1950, as amended (50 U.S.C. 4565),

and shall be availablein addition to any other funds available to any department or agency:

Provided further, That fees authorized by section 721(p) of such Act shall be credited to this

appropriation as offsetting collections: Provided further, That the total amount ap-propriated

under this heading from the general fund shall be reduced as such offset-ting collections are 

received during fiscal year [2021] 2022, so as to result in a total appropriation from the

general fund estimated at not more than [$15,000,000] $0.
Department of Treasury – Executive Summary - 19

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses of the Treasury Inspector General for Tax Administrationin carrying out

the Inspector General Act of 1978, as amended, including purchaseand hire of passenger motor 

vehicles (31 U.S.C. 1343(b)); and services authorizedby 5 U.S.C. 3109, at such rates as may be 

determined by the Inspector General forTax Administration; [$170,250,000] $175,762,000, of

which $5,000,000 shall remain available until September 30, [2022] 2023; of which not to

exceed $6,000,000 shallbe available for official travel expenses; of which not to exceed 

$500,000 shall be available for unforeseen emergencies of a confidential nature, to be allocated 

and expended under the direction of the Inspector General for Tax Administration; andof which

not to exceed $1,500 shall be available for official reception and representation expenses. 

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM 

ACCOUNT

Act of 1994 (subtitle A of title I of Public Law 103–325), including services authorized by 

section 3109 of title 5, United States Code, but at rates for individuals not to exceed the per diem 

rate equivalent to the rate for EX-III, [$270,000,000]$330,000,000. Of the amount appropriated 

under this heading—(1) not less than [$167,000,000] $217,383,000, notwithstanding section 

108(e) of Public Law 103–325 (12 U.S.C. 4707(e)) with regard to Small and/or Emerging 

Community Development Financial Institutions Assistance awards, is available until September 

30, [2022] 2023, for financial assistance and technical assistance under subparagraphs (A) and 

(B) of section 108(a)(1), respectively, of Public Law 103–325 (12 U.S.C. 4707(a)(1)(A) and 

(B)), of which up to $1,600,000 may be available for training and outreach under section 109 of 

Public Law 103–325 (12U.S.C. 4708), of which up to [$2,374,500] $3,153,750 may be used for 

the cost of direct loans, of which up to $6,000,000, notwithstanding subsection (d) of section 108 

of Public Law 103–325 (12 U.S.C. 4707 (d)), may be available to provide financial assistance, 

technical assistance, training, and outreach to community development financial institutions to 

expand investments that benefit individuals with disabilities, and of which not less than 

$2,000,000 shall be for the Economic Mobility Corps to be operated in conjunction with the 

Corporation for National and Community Service, pursuant to 42 U.S.C. 12571: Provided, That 

the cost of direct and guaranteed loans, including the cost of modifying such loans, shall be as 

defined in section 502 of the Congressional Budget Act of 1974: Provided further, That these 

funds are available to subsidize gross obligations for the principal amount of direct loans not to 

exceed $25,000,000: Provided further, That of the funds provided under this paragraph, 

excluding those made to community development financial institutions to expand investments 

that benefit individuals with disabilities and those made to community development financial 

institutions that serve populations living in persistent poverty counties, the CDFI Fund shall 

prioritize Financial Assistance awards to organizations that invest and lend in high- poverty 

areas: Provided further, That for purposes of this section, the term "high- poverty area" means 

any census tract with a poverty rate of at least 20 percent as measured by the 2011–2015 5-year 
Department of Treasury – Executive Summary - 20

data series available from the American Community Survey of the Bureau of the Census for all 

States and Puerto Rico or with a poverty rate of at least 20 percent as measured by the 2010 

Island areas Decennial Census data for any territory or possession of the United States; (2) Not 

less than [$16,500,000]$21,500,000, notwithstanding section 108(e) of Public Law 103–325 (12 

U.S.C. 4707(e)), is available until September 30, [2022] 2023, for financial assistance, technical 

assistance, training, and outreach programs designed to benefit Native American, Native 

Hawaiian, and Alaska Native communities and provided primarily through qualified community 

development lender organizations with experience and expertise in community development 

banking and lending in Indian country, Native American organizations, Tribes and Tribal 

organizations, and other suitable providers; (3) not less than $26,000,000 is available until 

September 30, [2022] 2023, for the Bank Enterprise Award program; (4) not less than 

$23,000,000, notwithstanding subsections (d) and (e) of section 108 of Public Law 103–325 (12 

U.S.C. 4707(d) and (e)), is available until September 30, [2022] 2023, for a Healthy Food 

Financing Initiative to provide financial assistance, technical assistance, training, and outreach to 

community development financial institutions for the purpose of offering affordable financing 

and technical assistance to expand the availability of healthy food options in dis- tressed 

communities; (5) not less than $8,500,000 is available until September 30, [2022] 2023, to 

provide grants for loan loss reserve funds and to provide technical assistance for small dollar 

loan programs under section 122 of Public Law 103–325 (12 U.S.C. 4719): Provided, That 

sections 108(d) and 122(b)(2) of such Public Law shall not apply to the provision of such grants 

and technical assistance; up to [$29,000,000] $33,617,000 is available until September 30, 

[2021]2022, for administrative expenses, including administration of CDFI Fund programs and 

the New Markets Tax Credit Program, of which not less than $1,000,000 is for the development 

of tools to better assess and inform CDFI in- vestment performance and CDFI Fund program 

impacts, and up to $300,000 is for administrative expenses to carry out the direct loan program; 

and (7) during fiscal year [2021] 2022, none of the funds available under this heading are 

available for the cost, as defined in section 502 of the Congressional Budget Act of 1974, of 

commitments to guarantee bonds and notes under section 114A of the Riegle Community 

Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4713a): Provided, That 

commitments to guarantee bonds and notes under such section 114A shall not exceed 

$500,000,000: Provided further, That such section 114A shall remain in effect until December 

31, [2021] 2022: Provided further, That of the funds awarded under this heading, except those 

provided for the Economic Mobility Corps, not less than 10 percent shall be used for awards that 

support investments that serve populations living in persistent poverty counties: Provided further, 

That for the purposes of this paragraph and paragraph (1), the term "persistent poverty counties" 

means any county, including county equivalent areas in Puerto Rico, that has had 20 percent or 

more of its population living in poverty over the past 30 years, as measured by the 1990 and 

2000 decennial censuses and the 2011–2015 5-year data series available from the American 

Community Survey of the Bureau of the Census or any other territory or possession of the United 

States that has had 20 percent or more of its population living in poverty over the past 30 years, 

as measured by the 1990, 2000 and 2010 Island Areas Decennial Censuses, or equivalent data, of 

the Bureau of the Census.
Department of Treasury – Executive Summary - 21

SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF 

PROGRAM

SALARIES AND EXPENSES

For necessary expenses of the Office of the Special Inspector General in carryingout the 

provisions of the Emergency Economic Stabilization Act of 2008 (Public Law 110–343), 

[$19,000,000] $17,000,000. 

FINANCIAL CRIMES ENFORCEMENT NETWORK

SALARIES AND EXPENSES

For necessary expenses of the Financial Crimes Enforcement Network, includinghire of 

passenger motor vehicles; travel and training expenses of non-Federal and foreign government 

personnel to attend meetings and training concerned with domestic and foreign financial 

intelligence activities, law enforcement, and financialregulation; services authorized by 5 

U.S.C. 3109; not to exceed [$12,000] $45,000for official reception and representation expenses;

and for assistance to Federal lawenforcement agencies, with or without reimbursement,

[$126,963,000] $190,539,000, of which not to exceed [$34,335,000] $94,600,000 shall remain

available until September 30, [2023] 2024 for information technology and to implement

Division F of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal

Year 2021 (Public Law 116–283).

BUREAU OF THE FISCAL SERVICE

SALARIES AND EXPENSES

For necessary expenses of operations of the Bureau of the Fiscal Service, [$345,569,000] 

$360,266,000; of which not to exceed $8,000,000, to remain available until September 30,

[2023] 2024, is for information systems modernization initiatives; and of which $5,000 shall be

available for official reception and representation expenses. In addition, $165,000, to be derived

from the Oil Spill Liability Trust Fund to reimburse administrative and personnel expenses for 

financial management of the Fund, as authorized by section 1012 of Public Law 101–380. 

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

SALARIES AND EXPENSES

For necessary expenses of carrying out section 1111 of the Homeland Security Act of 2002,

including hire of passenger motor vehicles, [$124,337,000] $131,330,000; of which $5,000,000 

shall remain available until September 30, 2023; of which not to exceed $6,000 shall be 

available for official reception and representation expenses; and of which not to exceed $50,000

shall beavailable for cooperative research and development programs for laboratory services; and 

provision of laboratory assistance to State and local agencies with or without reimbursement[:

Provided, That of the amount appropriated under this heading, $5,000,000 shall be for the costs

of accelerating the processing of formula and labelapplications: Provided further, That of the

amount appropriated under this heading, $5,000,000, to remain available until September 30,
Department of Treasury – Executive Summary - 22

2022, shall be for the costs associated with enforcement of and education regarding the trade

practice provisionsof the Federal Alcohol Administration Act (27 U.S.C. 201 et seq.)]. 

UNITED STATES MINT PUBLIC ENTERPRISE FUND

Pursuant to section 5136 of title 31, United States Code, the United States Mint is provided

funding through the United States Mint Public Enterprise Fund for costsassociated with the

production of circulating coins, numismatic coins, and protectiveservices, including both

operating expenses and capital investments: Provided, Thatthe aggregate amount of new 

liabilities and obligations incurred during fiscal year[2021] 2022 under such section 5136 for

circulating coinage and protective servicecapital investments of the United States Mint shall not

exceed $50,000,000.

INTERNAL REVENUE SERVICE

TAXPAYER SERVICES

For necessary expenses of the Internal Revenue Service to provide taxpayer ser-vices, including 

pre-filing assistance and education, filing and account services, taxpayer advocacy services, and 

other services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the

Commissioner, [$2,555,606,000] $2,940,876,000, of which not less than $11,000,0000 shall

be for the Tax Counseling for the Elderly Program,of which not less than $13,000,000 shall be

available for low-incometaxpayer clinic grants, of which not less than $30,000,000, to remain

available until September 30, [2022] 2023, shall be available for the CommunityVolunteer

Income Tax Assistance Matching Grants Program for tax return preparation assistance, and of

which not lessthan

$211,000,000 shall be available for operating expenses of the Taxpayer Advocate Service: 

Provided, That of the amounts made available for the Taxpayer Advocate Service, not less 

than $5,500,000 shall be for identity theft and refund fraud casework.

ENFORCEMENT

For necessary expenses for tax enforcement activities of the Internal Revenue Service to

determine and collect owed taxes, to provide legal and litigation support,to conduct criminal

investigations, to enforce criminal statutes related to violationsof internal revenue laws and other

financial crimes, to purchase and hire passengermotor vehicles (31 U.S.C. 1343(b)), and to

provide other services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the

Commissioner, [$5,212,622,000] $5,462,823,000, of which not to exceed $250,000,000 shall

remainavailable until September 30, [2022] 2023; of which not less than $60,257,000 shall be 

for the Interagency Crime and Drug Enforcement program; and of which not to exceed 

[$15,000,000] $21,000,000 shall be for investigative technology for the Criminal Investigation

Division: Provided, That the amount made available forinvestigative technology for the Criminal

Investigation Division shall be in additionto amounts made available for the Criminal

Investigation Division under the "Operations Support" heading. In addition, $287,452,000, for an

additional amount to meet the terms of a concurrent resolution on the budget for tax enforcement 

activities under this heading, including tax compliance to address the Federal tax gap: 
Department of Treasury – Executive Summary - 23

Provided, That such additional amounts may not be transferred or reprogrammed for any other 

activity.

OPERATIONS SUPPORT

For necessary expenses of the Internal Revenue Service to support taxpayer servicesand 

enforcement programs, including rent payments; facilities services; printing; postage; physical

security; headquarters and other IRS-wide administration activities;research and statistics of

income; telecommunications; information technology development, enhancement, operations,

maintenance, and security; the hire of passengermotor vehicles (31 U.S.C. 1343(b)); the

operations of the Internal Revenue Service Oversight Board; and other services as authorized by 

5 U.S.C. 3109, at such rates as may be determined by the Commissioner; [$3,928,102,000] 

$4,448,195,000, ofwhich not to exceed $275,000,000 shall remain available until September 30,

[2022] 2023; of which not to exceed $10,000,000 shall remain available until expended for

acquisition of equipment and construction, repair and renovation of facilities; of which not to

exceed $1,000,000 shall remain available until September 30, [2023] 2024, for research; of 

which not less than $10,000,000, to remain available until expended, shall be available for 

establishment of an application through which entities registering and renewing registrations in 

the System for Award Managementmay request an authenticated electronic certification stating 

that the entity does or does not have a seriously delinquent tax debt; and of which not to exceed 

$20,000 shall be for official reception and representation expenses: Provided, That not laterthan

30 days after the end of each quarter, the Internal Revenue Service shall submita report to the 

Committees on Appropriations of the House of Representatives andthe Senate and the

Comptroller General of the United States detailing major information technology investments in

the Internal Revenue Service Integrated Modernization Business Plan portfolio, including 

detailed, plain language summaries on thestatus of plans, costs, and results; prior results and 

actual expenditures of the priorquarter; upcoming deliverables and costs for the fiscal year; risks 

and mitigation strategies associated with ongoing work; reasons for any cost or schedule

variances;and total expenditures by fiscal year: Provided further, That the Internal Revenue

Service shall include, in its budget justification for fiscal year [2022] 2023, a summary of cost 

and schedule performance information for its major information technology systems. In addition,

$129,445,000, for an additional amount to meet the terms of a concur-rent resolution on the 

budget for tax enforcement activities under this heading, including tax compliance to address 

the Federal tax gap: Provided, That such additional amounts may not be transferred or 

reprogrammed for any other activity.

BUSINESS SYSTEMS MODERNIZATION

For necessary expenses of the Internal Revenue Service's business systems modernization 

program,[ $222,724,000] $305,032,000, to remain available until September 30, [2023]

2024, for the capital asset acquisition of information techno-logy systems, including 

management and related contractual costs of said acquisitions, including related Internal 

Revenue Service labor costs, and contractual costsassociated with operations authorized by 5 

U.S.C. 3109: Provided, That not later than 30 days after the end of each quarter, the Internal
Department of Treasury – Executive Summary - 24

Revenue Service shall submita report to the Committees on Appropriations of the House of 

Representatives andthe Senate and the Comptroller General of the United States detailing major

information technology investments in the Internal Revenue Service Integrated Modernization 

Business Plan portfolio, including detailed, plain language summaries on thestatus of plans, 

costs, and results; prior results and actual expenditures of the priorquarter; upcoming 

deliverables and costs for the fiscal year; risks and mitigation strategies associated with ongoing

work; reasons for any cost or schedule variances;and total expenditures by fiscal year. 

ADMINISTRATIVE PROVISIONS— INTERNAL REVENUE SERVICE

SEC. 101. Not to exceed 4 percent of the appropriation made available in this Act to the Internal

Revenue Service under the "Enforcement" heading, and not to exceed5 percent of any other

appropriation made available in this Act to the Internal Revenue Service, may be transferred to

any other Internal Revenue Service appropriation upon [the] advance [approval of] notice to the 

Committees on Appropriations of the House of Representatives and the Senate.

SEC. 102. The Internal Revenue Service shall maintain an employee training program, which

shall include the following topics: taxpayers' rights, dealing courteouslywith taxpayers, crosscultural relations, ethics, and the impartial application of taxlaw.

SEC. 103. The Internal Revenue Service shall institute and enforce policies and procedures that

will safeguard the confidentiality of taxpayer information and protect taxpayers against identity 

theft.

SEC. 104. Funds made available by this or any other Act to the Internal RevenueService shall

be available for improved facilities and increased staffing to providesufficient and effective 1–

800 help line service for taxpayers. The Commissionershall continue to make improvements to

the Internal Revenue Service 1–800 helpline service a priority and allocate resources necessary

to enhance the response timeto taxpayer communications, particularly with regard to victims of

tax-related crimes.

SEC. 105. The Internal Revenue Service shall issue a notice of confirmation of any address

change relating to an employer making employment tax payments, andsuch notice shall be sent

to both the employer's former and new address and an officer or employee of the Internal

Revenue Service shall give special consideration to anoffer-in-compromise from a taxpayer

who has been the victim of fraud by a third party payroll tax preparer.

SEC. 106. None of the funds made available under this Act may be used by theInternal

Revenue Service to target citizens of the United States for exercising anyright guaranteed under

the First Amendment to the Constitution of the United States.

SEC. 107. None of the funds made available in this Act may be used by the Internal Revenue

Service to target groups for regulatory scrutiny based on their ideological beliefs.

SEC. 108. None of funds made available by this Act to the Internal Revenue Service shall be

obligated or expended on conferences that do not adhere to the procedures,verification processes,

documentation requirements, and policies issued by the ChiefFinancial Officer, Human Capital 

Office, and Agency-Wide Shared Services as a result of the recommendations in the report 

published on May 31, 2013, by the Treasury Inspector General for Tax Administration entitled

"Review of the August2010 Small Business/Self-Employed Division's Conference in Anaheim,

California"(Reference Number 2013–10–037).

SEC. 109. None of the funds made available in this Act to the Internal Revenue Service may be 
Department of Treasury – Executive Summary - 25

obligated or expended (1) to make a payment to any employee under a bonus, award, or

recognitionprogram; or (2) under any hiring or personnel selection process with respect to rehiring aformer employee; unless such program or process takes into account the conduct and 

Federal tax compliance of such employee or former employee.

SEC. 110. None of the funds made available by this Act may be used in contravention of section

6103 of the Internal Revenue Code of 1986 (relating to confidentialityand disclosure of returns 

and return information).

SEC. 111. Notwithstanding any Congressional notification requirements for a reprogramming

of funds in this Act, funds provided in this Act for the Internal RevenueService shall be available

for obligation and expenditure through a reprogrammingof funds that augments or reduces 

existing programs, projects, or activities by up to $10,000,000 without prior Congressional 

notification of such action.

SEC. 112. There is hereby established the Internal Revenue Service Working Capital Fund 

(Fund), which shall be available without fiscal year limitation, for expenses necessary for

facility services, technology, and other centralized servicesthat the Commissioner of Internal 

Revenue, subject to prior notice to the Office of Management and Budget, deems appropriate 

and advantageous to provide on a reimbursable basis: Provided, That amounts deposited in the

Fund shall be in addition to funds otherwise available for such purposes, and shall remain

available until expended: Provided further, That the Fund may receive advances and

reimbursements from funds available to the business units and offices of the Internal Revenue

Servicefor which such centralized services are performed at rates which will return in fullall 

expenses of operation: Provided further, That unobligated balances of expired amounts

appropriated or otherwise made available for this or any succeeding fiscalyear to the Internal

Revenue Service may be transferred and merged into the Fundno later than the end of the fifth 

fiscal year after the last fiscal year for which suchfunds are available for the purposes for which

appropriated: Provided further, That no funds may be transferred pursuant to the previous 

proviso unless advance notification is provided to the Committees on Appropriations of the

House of Representatives and the Senate. 

ADMINISTRATIVE PROVISIONS—DEPARTMENT OF THE TREASURY

SEC. 111. Appropriations to the Department of the Treasury in this Act shall be available for

uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901),including maintenance, 

repairs, and cleaning; purchase of insurance for official motor vehicles operated in foreign 

countries; purchase of motor vehicles without regard to the general purchase price limitations for 

vehicles purchased and used overseas for the current fiscal year; entering into contracts with the 

Department ofState for the furnishing of health and medical services to employees and their 

dependents serving in foreign countries; and services authorized by 5 U.S.C. 3109.

SEC. 112. Not to exceed 2 percent of any appropriations in this title made availableunder the

headings "Departmental Offices—Salaries and Expenses", "Office of Inspector General",

"Special Inspector General for the Troubled Asset Relief Program", "Financial Crimes 

Enforcement Network", "Bureau of the Fiscal Service", and "Alcohol and Tobacco Tax and 

Trade Bureau" may be transferred between such appropriations upon the advance [approval] 

notification of the Committees on Appropriations of the House of Representatives and the 

Senate: Provided, That no transfer under this section may increase or decrease any such
Department of Treasury – Executive Summary - 26

appropriation by morethan 2 percent.

SEC. 113. Not to exceed 2 percent of any appropriation made available in this Actto the Internal

Revenue Service may be transferred to the Treasury Inspector Generalfor Tax Administration's 

appropriation upon the advance [approval] notification ofthe Committees on Appropriations of

the House of Representatives and the Senate:Provided, That no transfer may increase or decrease

any such appropriation by morethan 2 percent.

SEC. 114. None of the funds appropriated in this Act or otherwise available to theDepartment 

of the Treasury or the Bureau of Engraving and Printing may be used to redesign the $1 Federal 

Reserve note.

SEC. 115. The Secretary of the Treasury may transfer funds from the "Bureau of the Fiscal

Service—Salaries and Expenses" to the Debt Collection Fund as necessaryto cover the costs of

debt collection: Provided, Thatsuch amounts shall be reimbursedto such salaries and expenses 

account from debt collections received in the Debt Collection Fund.

SEC. 116. None of the funds appropriated or otherwise made available by this orany other Act 

may be used by the United States Mint to construct or operate any museum without the [explicit 

approval] prior notification of the Committees on Appropriations of the House of

Representatives and the Senate, the House Committeeon Financial Services, and the Senate

Committee on Banking, Housing, and UrbanAffairs.

SEC. 117. None of the funds appropriated or otherwise made available by this orany other Act

or source to the Department of the Treasury, the Bureau of Engravingand Printing, and the 

United States Mint, individually or collectively, may be usedto consolidate any or all functions

of the Bureau of Engraving and Printing and theUnited States Mint without the [explicit 

approval] prior notification of the House Committee on Financial Services; the Senate

Committee on Banking, Housing, andUrban Affairs; and the Committees on Appropriations of

the House of Representatives and the Senate.

SEC. 118. Funds appropriated by this Act, or made available by the transfer offunds in this 

Act, for the Department of the Treasury's intelligence or intelligence related activities are 

deemed to be specifically authorized by the Congress for purposes of section 504 of the 

National Security Act of 1947 (50 U.S.C. 414) during fiscal year [2021] 2022 until the

enactment of the Intelligence Authorization Actfor Fiscal Year [2021] 2022.

SEC. 119. Not to exceed $5,000 shall be made available from the Bureau of Engraving and 

Printing's Industrial Revolving Fund for necessary official reception and representation 

expenses.

SEC. 120. The Secretary of the Treasury shall submit a Capital Investment Plan to the

Committees on Appropriations of the House of Representatives and the Senatenot later than 30 

days following the submission of the annual budget submitted bythe President: Provided, That

such Capital Investment Plan shall include capital investmentspending from all accounts within

the Department of the Treasury, includingbut not limited to the Department-wide Systems and 

Capital Investment Programsaccount, Treasury Franchise Fund account, and the Treasury

Forfeiture Fund account:Provided further, That such Capital Investment Plan shall include

expenditures occurring in previous fiscal years for each capital investment project that has not

beenfully completed.

SEC. 121. Within 45 days after the date of enactment of this Act, the Secretary ofthe Treasury 

shall submit an itemized report to the Committees on Appropriationsof the House of
Department of Treasury – Executive Summary - 27

Representatives and the Senate on the amount of total funds chargedto each office by the

Franchise Fund including the amount charged for each serviceprovided by the Franchise Fund to

each office, a detailed description of the services,a detailed explanation of how each charge for 

each service is calculated, and a de-scription of the role customers have in governing in the 

Franchise Fund.

SEC. 122. During fiscal year [2021] 2022— (1) none of the funds made available in this or 

any other Act may be used by the Department of the Treasury, including the Internal 

Revenue Service, to issue, revise, or finalize any regulation, revenue ruling, or other 

guidance not limited to a particular taxpayer relating to the standard which is used to 

determine whether an organization is operated exclusively for the promotion of social 

welfare for purposes of section 501(c)(4) of the Internal Revenue Code of 1986 (including 

the proposed regulations published at 78 Fed. Reg. 71535 (November 29, 2013)); and (2) 

the standard and definitions as in effect on January 1, 2010, which are used to make such 

determinations shall apply after the date of the enactment of this Act for purposes of 

determining status under section 501(c)(4) of such Code of organizations created on, 

before, or after such date.

SEC. 123. (a) Not later than 60 days after the end of each quarter, [the Office of Financial 

Stability and] the Office of Financial Research shall submit reports on their activities to the 

Committees on Appropriations of the House of Representatives and the Senate, the 

Committee on Financial Services of the House of Representatives and the Senate 

Committee on Banking, Housing, and Urban Affairs. (b) The reports required under 

subsection (a) shall include— (1) the obligations made during the previous quarter by 

object class, office, and activity; (2) the estimated obligations for the remainder of the 

fiscal year by object class, office, and activity; (3) the number of full-time equivalents 

within each office during the previous quarter; (4) the estimated number of full-time 

equivalents within each office for the remainder of the fiscal year; and (5) actions taken to 

achieve the goals, objectives, and performance measures of each office. (c) At the request 

of any such Committees specified in subsection (a), [the Office of Financial Stability and] 

the Office of Financial Research shall make officials available to testify on the contents of 

the reports required under subsection (a). 

[SEC. 124. In addition to the amounts otherwise made available to the Department of the 

Treasury, $25,000,000, to remain available until expended, shall be for expenses associated 

with digitization and distribution of the Department's records of matured savings bonds that 

have not been redeemed.]

SEC. 124. Of the amounts appropriated in section 4027(a) of the Coronavirus Aid,Relief, and

Economic Security Act (15 U.S.C. 9061) that are available for obligationas a result of the

deobligation of amounts that were, as of January 9, 2021, obligatedfor the credit subsidy cost of 

loans and loan guarantees that the Secretary of the Treasury had committed under paragraphs

(1) through (3) of section 4003(b) of theCoronavirus Aid, Relief, and Economic Security Act (15

U.S.C. 9042(b)(1)-(3)), $25,000,000 shall be available to the Special Inspector General for 

Pandemic Recovery to carry out section 4018 of the Coronavirus Aid, Relief, and Economic 

Security Act (15 U.S.C. 9053): Provided, That such amounts shall be in addition to any other 

amounts available for such purpose.

SEC. 125. Notwithstanding any other provision of law, the unobligated balancesfrom amounts 
Department of Treasury – Executive Summary - 28

made available to the Secretary of the Treasury for administrative expenses pursuant to sections 

4003(f) and 4112(b) of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 

116–136); section 421(f)(2) of Division Nof the Consolidated Appropriations Act, 2021 (Public 

Law 116–260); sections 3201(a)(2)(B), 3206(d)(1)(A), and 7301(b)(5) of the American Rescue 

Plan Act of 2021 (Public Law 117–2); and section 602(a)(2) of the Social Security Act, as added

by section 9901 of the American Rescue Plan Act of 2021 (Public Law 117–2), shallbe available 

for any administrative expenses determined by the Secretary of the Treasury to be necessary to 

respond to the coronavirus, including but not limited to expenses necessary to implement any 

provision of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136), 

Division N of the ConsolidatedAppropriations Act, 2021 (Public Law 116–260), the American 

Rescue Plan Act (Public Law 117–2), or title VI of the Social Security Act: Provided, That such 

un-obligated balances shall be available in addition to any other appropriations provided for 

such purposes.

SEC. 126. Section 121 of the Emergency Economic Stabilization Act of 2008 (12U.S.C. 5231) is

amended in subsection (e)(1)(B)(ii) by striking "subparagraph" andall that follows through the 

period at the end and inserting "subparagraph, the Special Inspector General may not make any 

appointment that exceeds 24 monthsor that extends beyond the date on which the Special

Inspector General terminatesunder subsection (k).”


Department of the Treasury

Internal Revenue Service

Congressional Budget

Justification and Annual

Performance Plan and Report

FY 2022
IRS‐i

Table of Contents 

Section I – Budget Request........................................................................................................... 1

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

1.1 – Appropriations Detail Table ........................................................................................... 1

Program Integrity Allocation Adjustment .............................................................................. 5

B – Summary of the Request .................................................................................................... 7

1.2 – Budget Adjustments Table .............................................................................................. 9

C – Base Adjustment and Program Changes Description ................................................... 10

Base Adjustment ...................................................................................................................... 10

Maintaining Current Levels ................................................................................................... 10

Pay Annualization (1.0%) ..................................................................................................... 10

Pay Raise (2.7%) ................................................................................................................... 10

Non-Pay ................................................................................................................................. 10

Federal Employee Retirement System (FERS) Contribution Increase .................................. 10

Efficiencies / Savings ............................................................................................................... 10

Increase e-File Savings ......................................................................................................... 10

Personnel Savings ................................................................................................................. 10

Program Increases ................................................................................................................... 11

Putting Taxpayers First ......................................................................................................... 11

Ensure Fairness of the Tax System ........................................................................................ 15

Improve Live Assistance ........................................................................................................ 26

IRS Integrated Modernization Business Plan ........................................................................ 27

Electric Vehicles and Associated Infrastructure ................................................................... 30

1.3 – Object Classification (Schedule O) Obligations .......................................................... 31

D – Appropriations Language and Explanation of Changes .............................................. 32

E – Legislative Proposals ........................................................................................................ 41

F – Evidence Building Activity ............................................................................................... 44

Section II – Budget and Performance Plan .............................................................................. 46

A – Strategic Alignment .......................................................................................................... 46

Taxpayer Services ................................................................................................................... 49

2.1 – Budget Adjustment Table ............................................................................................ 49

2.2 – Object Classification Obligations ................................................................................ 50

2.3 – Appropriation Detail Table ......................................................................................... 51

2A – Pre-Filing Taxpayer Assistance and Education ......................................................... 51

2.1.1 – Budget and Performance Report and Plan ............................................................. 54

2B – Filing and Account Services ........................................................................................ 55

2.1.2 – Budget and Performance Report and Plan ............................................................. 59

Enforcement ............................................................................................................................. 60

2.1 – Budget Adjustments Table........................................................................................... 61

2.2 – Object Classification Obligations ................................................................................ 62

2.3 – Appropriation Detail Table ......................................................................................... 63
IRS‐ii

2C – Investigations ............................................................................................................... 63

2.1.3 – Budget and Performance Report and Plan ............................................................. 67

2D – Exam and Collections .................................................................................................. 68

2.1.4 – Budget and Performance Report and Plan ............................................................. 74

2E – Regulatory .................................................................................................................... 75

2.1.5 – Budget and Performance Report and Plan ............................................................. 77

Operations Support ................................................................................................................. 78

2.1 – Budget Adjustments Table........................................................................................... 79

2.2 – Object Classification Obligations ................................................................................ 80

2.3 – Appropriation Detail Table ......................................................................................... 81

2F – Infrastructure ............................................................................................................... 81

2.1.6 – Budget and Performance Report and Plan ............................................................. 84

2G – Shared Services and Support....................................................................................... 84

2.1.7 – Budget and Performance Report and Plan ............................................................. 88

2H – Information Services ................................................................................................... 88

2.1.8 – Budget and Performance Report and Plan ............................................................. 92

Business Systems Modernization ........................................................................................... 93

2.1 – Budget Adjustments Table........................................................................................... 93

2.2 – Object Classification Obligations ................................................................................ 94

2.3 – Appropriation Detail Table ......................................................................................... 95

2I – Business Systems Modernization.................................................................................. 95

2.1.9 – Budget and Performance Report and Plan ............................................................. 97

B - FY 2020 - FY 2022 IRS Integrated Modernization Business Plan ............................... 98

C – Changes in Performance Measures .............................................................................. 100

Section III – Supplemental Information ................................................................................. 101

3.1 – Summary of Capital Investments ............................................................................... 101

3.2 – Return on Investment (ROI) for IRS Major Enforcement Programs .................... 115

3.3 – IRS Performance Measures Table .............................................................................. 117

3.4 – Summary of FY 2020 Savings Realized ...................................................................... 119

Section IV – Appendix .............................................................................................................. 120

4.1 - COVID-19 Supplemental Funding .............................................................................. 120

4.2 - Mandatory Funding and Program Integrity Allocation Adjustment Proposals .... 123

4.3 - Appropriations Detail Table with Program Integrity Allocation Adjustment ....... 127

Increase Audit Coverage ..................................................................................................... 129

Increase Collection Coverage ............................................................................................. 131

Expand Coverage in the Tax-Exempt Sector ....................................................................... 134

Enhance Return Review Program ....................................................................................... 136

Enhance Enforcement Operations ....................................................................................... 137

4.4 – Summary of IRS FY 2022 Request by Business Unit (including the Program 

Integrity Allocation Adjustment) ......................................................................................... 139

4.5 – Summary of IRS FY 2022 Identity Theft Budget Request ....................................... 139

4.6 – Summary of IRS FY 2022 ACA Budget Request ...................................................... 140
IRS‐iii

4.7 – Summary of IRS FY 2022 Cyber Security Budget Request ..................................... 140

4.8 – Summary of IRS FY 2022 Budget Request ................................................................ 141
IRS‐1

Section I – Budget Request 

A – Mission Statement 

Provide Americaʼs taxpayers top-quality service by helping them understand and meet 

their tax responsibilities and enforce the law with integrity and fairness to all. 

1.1 – Appropriations Detail Table 

Dollars in thousands

Internal Revenue Service

Appropriated Resources

FTE AMOUNT FTE AMOUNT AMOUNT AMOUNT AMOUNT

New Appropriated Resources:

Taxpayer Services 26,760 $2,535,554 25,989 $2,587,606 $2,940,876 $353,270 13.65%

Pre-Filing Taxpayer Assistance and 

Education 4,524 647,066 4,514 657,618 713,346 55,728 8.47%

Filing and Account Services 22,236 1,888,488 21,475 1,929,988 2,227,530 297,542 15.42%

Enforcement 35,388 $4,909,500 34,989 $5,004,622 $5,462,823 $458,201 9.16%

Investigations 2,971 648,819 3,012 698,193 773,605 75,412 10.80%

Exam and Collections 31,467 4,081,409 30,987 4,120,886 4,497,709 376,823 9.14%

Regulatory 950 179,272 990 185,543 191,509 5,966 3.22%

Operations Support 11,970 $3,885,000 12,037 $4,104,102 $4,448,195 $344,093 8.38%

Infrastructure 881,670 886,713 971,008 84,295 9.51%

Shared Services and Support 4,947 990,690 5,122 1,024,654 1,088,217 63,563 6.20%

Information Services 7,023 2,012,640 6,915 2,192,735 2,388,970 196,235 8.95%

Business Systems Modernization 426 $180,000 394 $222,724 $305,032 $82,308 36.96%

Subtotal New Appropriated Resources 74,544 $11,510,054 73,409 $11,919,054 $13,156,926 $1,237,872 10.39%

Other Resources:

Reimbursables 790 106,965 808 179,759 189,645 9,886 5.50%

Offsetting Collections - Non 

Reimbursables 6,728 21,300 22,472 1,172 5.50%

User Fees 4 485,997 1,536 585,244 435,400 (149,844) -25.60%

Recovery from Prior Years 11 16,457 16,764 16,764

Unobligated Balances from Prior 

Years 385 171,189 15 318,017 327,299 9,282 2.92%

Transfers In/Out 137 140 140

Recoveries Paid 3,604 3,604

Resources from Other Accounts 274 434 123,039 98,153 (24,886) -20.23%

Subtotal Other Resources 1,464 $787,473 2,793 $1,247,867 $1,093,477 ($154,390) -12.37%

Total Budgetary Resources 76,008 $12,297,527 76,202 $13,166,921 $14,250,403 $1,083,482 8.23%

1 FY 2020 Other Resources represent actuals.

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million under the 

Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated Appropriations Act, 2021 (P.L. 

116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 million Program Integrity Allocation Adjustment, and the 

$79 billion mandatory funding proposal.

% Change

FY 2020

Operating Plan1

FY 2021

Operating Plan2

FY 2022

Request

FY 2021 to FY 

2022 Request

FY 2021 to FY 

2022 Request

Change

2 FY 2021 Operating Plan includes a $176 million interappropriation transfer from Enforcement to Operations Support to cover anticipated operations 

and maintenance requirements in FY 2021. FY 2021 Enacted amount also includes a $32 million transfer from Enforcement to Taxpayer Services.
IRS ‐ 2

Introduction 

The Internal Revenue Service (IRS) FY 2022 budget request is $13.2 billion, $1.2 billion 

(10.4 percent) more than the FY 2021 enacted level, to administer the nationʼs tax 

system fairly, collect $3.5 trillion in taxes to fund the government, and strengthen tax 

compliance. In addition, the budget request proposes a $417 million program integrity 

allocation adjustment investment in FY 2022 that will increase tax compliance and 

revenue and reduce the tax gap. In addition, the Budget includes a multi-year initiative 

(see Appendix 4.2) to improve tax compliance and enforcement, modernize IRS IT 

systems, support increased information reporting, and support the Administration's 

proposal to make the Child Tax Credit expansion and the advance payments permanent 

as well as additional authority to improve tax administration efforts. The budget request 

includes discussion on how the IRS assisted taxpayers by implementation initiatives 

supported by the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act and 

Families First Coronavirus Response Act in section 4.2. 

The IRS has an overall return on investment (ROI) of about $5 for every $1 invested, 

excluding significant deterrence effects. Overall, this request supports fair and equitable 

tax administration for all Americans, including increasing oversight of 

high-income/high-wealth individuals and corporations to ensure compliance. It also 

improves taxpayer experience by providing new and improved online tools for taxpayers 

to communicate with the IRS easily and quickly. This IRS continues to improve telephone 

and in-person taxpayer customer service. Additionally, it is expanding outreach and 

assistance to underserved communities. The FY 2022 Budget requests a total program 

increase of $915.5 million including: 
IRS ‐ 3

• $176.1 million for continuing the implementation of the Taxpayer First Act 

implementation activities; 

• $340.0 million for establishing enforcement strategies that will ensure a fair tax 

system; 

• $318.0 increase live assistance including telephone level of service, 

correspondence, and in-person visits; 

• $78.1 million for IT modernization activities; and 

• $3.0 million to lease and maintain a fleet of electric vehicles. 

Through IRS enforcement efforts and strategies for meeting the needs of taxpayers, the 

IRS intends to decrease the tax gap. The IRS dedicates itself to improving the taxpayer 

experience so that taxpayers and their representatives can understand and meet their 

tax obligations with minimal burden. The IRSʼs aim is to increase voluntary compliance 

through simplifying the tax filing, correction, and payment processes. To help achieve 

this, the IRS will focus on improving education and outreach on taxpayer rights and 

obligations and enhancing service channels to meet taxpayer needs. In addition to 

improving the taxpayer experience, another priority of the IRS is to ensure taxpayers 

comply with the tax law. The IRS continues to develop innovative approaches to 

understanding, detecting, and resolving potential noncompliance to maintain taxpayer 

confidence in the tax system. The IRSʼs efforts to improve the taxpayer experience and 

enforce the tax laws will lead to a reduction in the tax gap over time. Reducing the tax 

gap requires the IRS to maintain a robust enforcement program. 

Appropriations for the IRS fell by about 20 percent (adjusted for inflation) since FY 2010. 

About 70 percent of the IRSʼs overall budget is for labor, and thus the decline in the 

overall IRS budget resulted in a 15 percent decline in the number of full-time employees 

at the agency (since FY 2010) and a 31 percent decline in the number of full-time 

employees working in enforcement roles (since FY 2010). The IRS lost more than 33,378 

full-time personnel between FY 2010 and FY 2020, including more than 13,388 key 

enforcement personnel. These losses included revenue agents and revenue officers, who 

audit tax returns and perform collection activities, as well as special agents who 

investigate tax-related crimes and other issues. The number of examining revenue 

agents, who handle complex enforcement cases, fell by 35 percent, and field collection 

revenue officers, who manage difficult collections cases, dropped by 48 percent. The 

loss of enforcement employees since 2010 has resulted in the examination rate for 

individual returns falling by about 45 percent; for businesses with assets equal to or 

exceeding $10 million, the examination rate fell by about 72 percent. 
IRS ‐ 4

The effect of personnel lost is most visible in enforcement activities. Among the 33,3781

full-time personnel lost between FY 2010 and FY 2020, more than 13,388 were 

enforcement personnel. These losses included revenue agents and revenue officers, who 

audit tax returns and perform collection activities, as well as special agents who 

investigate tax-related crimes and other issues. Although the IRS workforce increased 

over the past year, IRS staffing levels are comparable to where the IRS was in 1973, 

when the U.S. population was about 210 million, versus todayʼs population of about 333 

million. 

1 FY 2010 through FY 2020 full-time personnel lost, is not a net loss of FTE. This statistic does not include the number of personnel 

hired during the same time. 
IRS ‐ 5

Reductions to enforcement staffing levels between FY 2010 and 2020 likely reduced 

total enforcement revenue collected (TERC) by around $83 billion. 

While a portion of the unpaid tax obligations that make up the tax gap result from a 

lack of knowledge or ambiguity and complexity in tax law, willful evasion is a significant 

contributing factor. The IRS could help remedy this with investments funded by the 

program integrity allocation adjustment, which includes targeted investments in 

enforcement activities that will increase revenue and lower the tax gap. 

The FY 2022 request and legislative proposals provide the IRS with a blueprint to 

address various facets of the tax gap. The modernization plan will provide significant 

improvements in the taxpayer experience by increasing online service options and 

making it easier for taxpayers to find answers to their questions. IRS research 

demonstrates that making it easier for taxpayers to meet their obligations with selfservice tools and user-friendly customer service improves compliance. 

Program Integrity Allocation Adjustment 

In addition to the base appropriations request of $13.2 billion, the Budget proposes a 

$417 million discretionary program integrity allocation adjustment in FY 2022 to fund 

investments in expanding and improving the effectiveness and efficiency of the IRSʼs 

overall tax enforcement program. The budget proposes $287 million for the 

Enforcement account and $129 million for the Operations Support account. These 

investments will generate $38.6 billion in new direct revenue and protect $11.6 billion 

over 10 years, costing $6.7 billion. This return on investment (ROI) is likely understated 
IRS ‐ 6

because it does not reflect the effect that enhanced enforcement has on deterring noncompliance.
IRS ‐ 7

B – Summary of the Request 

The IRS is responsible for administering the nationʼs tax system and meeting the needs 

of Americaʼs taxpayers by helping them understand their tax responsibilities and by 

enforcing the law with integrity and fairness. The IRSʼs core operations include collection 

of individual and corporate taxes, examination of returns, taxpayer assistance, and 

oversight of tax-exempt organizations, as well as administering multiple refundable tax 

credits and other specialized programs. 

In FY 2020 the IRS collected $3.5 trillion in taxes (gross receipts before tax refunds) and 

generated 96 percent of the funding that supports the Federal Governmentʼs 

operations. With the U.S. tax base becoming more complex, one of the IRSʼs key 

responsibilities is to make it easier for taxpayers to understand and meet their tax 

obligations. 

Almost 96 percent of the gross revenue of the United States flows through the 

IRS. Every American is important to the IRS, and the IRS is important to every 

American. The IRS is endeavoring to continue earning the respect and trust of 

every American. We proudly serve all taxpayers, none more or less so than any 

other. We must continue to operate through their eyes, from their perspective, 

enhancing their experiences while striving to provide clear, meaningful guidance 

and services, in the language of their choice, wherever possible. In support of 

compliant taxpayers, we will continue to aggressively pursue non-compliant 

taxpayers by maintaining robust, visible, civil, and criminal enforcement efforts. 

To continue to deliver on our mission, the IRS requires consistent, timely, multiyear funding. The entire IRS workforce wants to do more, and with adequate 

resources provided by Congress to help us reach our vision, we will. 

Chuck Rettig 

Commissioner 

 

242M $3.5T $2,034 $51.1B

Federal Tax

Returns and 

Forms

Processed

Collected in 

Gross Taxes

Average 

Individual 

Refund

Enforcement 

Revenue Collected
IRS ‐ 8

FY 2022 Budget Request and Priorities 

The FY 2022 request is $13.2 billion, $1.2 billion or 10.4 percent more than the FY 2021 

operating level of $11.9 billion. The base budget request provides funding to carry out 

the IRS mission. 

Appropriation Account ($ in 

Millions) 

Taxpayer Services $2,940.9 

Enforcement 5,462.8 

Operations Support 4,448.2 

Business Systems Modernization 305.0 

Total Appropriated Resources $13,156.9

This funding level includes a program increase of $915 million for Putting Taxpayers First 

($176 million), Ensuring Fairness of the Tax System ($340 million), Improving Live 

Assistance ($318 million), and the continuance of IT Modernization efforts ($78 million). 
IRS ‐ 9

1.2 – Budget Adjustments Table 

Dollars in thousands

Bureau: Internal Revenue Service 

Summary of Proposed FY 2021 Request FTE Amount

FY 2021 Operating Plan 73,409 $11,919,054

Changes to Base:

Maintaining Current Levels (MCLs) $327,995

Pay Annualization (1.0% average pay raise) 22,442

Pay Raise (2.7% average pay raise) 182,239

Non-Pay 55,641

FERS Contribution Increase 67,673

Efficiencies/Savings: (409) ($5,585)

Increase e-File Savings (101) (5,585)

Personnel Savings (308)

Subtotal FY 2022 Changes to Base (409) $322,410

FY 2022 Current Services 73,000 $12,241,464

Program Changes:

Program Increases

Putting Taxpayers First 294 176,086

User Authentication 27,000

Taxpayer Experience Strategy 294 149,086

Ensure Fairness of the Tax System 1,833 340,267

Improve Live Assistance 4,203 318,000

Integrated Modernization Business Plan 18 78,143

Electric Vehicles and Associated Infrastructure 2,966

Subtotal FY 2022 Program Increases 6,348 $915,462

Total FY 2022 Budget Request 79,348 $13,156,926

PIAA Program Increases

Increase Audit Coverage 1,043 148,810

Increase Collection Coverage 1,184 159,456

Expand Coverage in the Tax-Exempt Sector 244 37,950

Enhance Return Review Program 60 38,341

Enhance Enforcement Operations 23 32,340

Subtotal FY 2022 PIAA Program Increases 2,554 $416,897

Total FY 2022 Request Including PIAA 81,902 $13,573,823

See footnotes in 1.1 -- Appropriations Detail Table
IRS ‐ 10

C – Base Adjustment and Program Changes Description 

Base Adjustment..................................................................................+$0 / +0 FTE

The FY 2021 operating level of $11.9 billion includes an inter-appropriation transfer of 

$208 million from the Enforcement appropriation to the Taxpayer Services appropriation 

($32 million) and the Operations Support appropriation ($176 million). The transfer will 

fund the necessary support costs for increased staffing levels in Enforcement and filing 

season activities in Taxpayer Service.

Maintaining Current Levels................................................. +$327,995,000 / +0 FTE 

Pay Annualization (1.0%) +$22,442,000 / +0 FTE 

Funds are requested for annualization of a 1 percent average pay raise implemented in 

January 2021. 

Pay Raise (2.7%) +$182,239,000 / +0 FTE 

Funds are requested for a 2.7 percent average pay raise effective January 2022. 

Non-Pay +$55,641,000 / +0 FTE 

Funds are requested for inflationary increases in non-labor expenses such as travel, 

contracts, rent, supplies, and equipment. 

Federal Employee Retirement System (FERS) Contribution Increase +$67,673,000 / +0 

FTE 

Funds are requested for the FERS contribution rates effective FY 2022.

Efficiencies / Savings............................................................ -$5,585,300 / -409 FTE 

Increase e-File Savings -$5,585,300 / -101 FTE

The IRS projects a total of 1,426,500 fewer returns filed on paper (752,200 individual and 

674,300 business returns). As a result, the IRS would need 101 fewer FTE in submission 

processing, generating a savings of $5.6 million. 

Personnel Savings +$0 / -308 FTE 

Although the budget request increases staffing resources to support strategic priorities, 

the IRS must manage its personnel costs through limited attrition replacement and 

seasonal workforce adjustments across many operational areas. These adjustments are 

necessary to fund the $328 million in inflationary and labor cost increases for existing 

personnel, including annualization of the FY 2021 pay raise, the proposed FY 2022 pay 
IRS ‐ 11

raise, employee promotions, and employee retirement contributions. To achieve these 

savings, the IRS plans to: 

• Fill critical vacancies only; 

• Streamline the workforce by reducing administrative, analyst, and other support 

positions; 

• Realign mission critical occupations by hiring employees who have the 

background and skills to support the IRS in meeting its strategic goals, objectives, 

and priorities. 

Program Increases..................................................... +$915,462,000 / +6,348 FTE 

Putting Taxpayers First +$176,086,000 / +294 FTE

The Taxpayer First Act (TFA), Public Law 116-25, mandates the IRS to reimagine and 

enhance the way it serves taxpayers, enforces the tax laws in a fair and impartial manner, 

and the way it prepares the agencyʼs employees to deliver a world-class customer 

experience. The TFA consists of 45 provisions, including specific mandates to improve 

the taxpayer experience. Implementing the TFA will dramatically change how the IRS 

engages with taxpayers. These efforts will improve the experience of taxpayers as they 

interact with the IRS and increase the IRSʼs ability to secure taxpayer information, 

protect taxpayer identities, develop additional online capabilities for taxpayers, and 

develop comprehensive training for IRS employees. This investment includes: 

Position Type/Other Costs FTE Positions $000

 User Authentication $27,000

 Contract Services 27,000

Expand Digital Services 168.50 337 $101,754

Appeals Officer 9 18 1,273

Attorney 2 4 484

IT Specialist 157.5 315 25,188

Contract Services 74,809

Seamless Experience 115.50 231 $35,063

Revenue Agent 50 100 12,495

Appeals Officer 16 32 2,966

IT Specialist 49.5 99 15,544

Contract Services 4,058

Underserved Strategies 10.00 20 $12,269

Tax Law Specialist 3.5 7 456

Program Analyst 6.5 13 7,313

Contract Services 4,500

Total 294.00 588 $176,086
IRS ‐ 12

User Authentication (+$27,000,000 / +0 FTE) 

As the IRS moves to implement the provisions of the TFA, such as the Identity Protection 

PIN (IP PIN) and the Taxpayer Experience Strategy. The IRS will incorporate National 

Institute of Standards and Technology (NIST) Special Publication 800-63-3, Digital 

Identity Guidelines, and the recommendations of the Electronic Tax Administration 

Advisory Committee regarding identity theft refund fraud. These standards and 

recommendations guide how the IRS identity proofs and authenticates taxpayers to 

allow secure access to taxpayer online services. Resources are needed to enter a 

contract with a third-party vendor to be able to authenticate taxpayers. This funding will 

allow the IRS to authenticate approximately 8 million new taxpayers who sign up for an 

online account. After the initial authentication, the new NIST standards require 

reauthenticating annually. Besides IP PIN, examples of other IRS applications taxpayers 

access online include Get Transcript Online, the suite of e-Services applications for tax 

professionals, Online Payment Agreements, and the Child Tax Credit portal. 

Taxpayer Experience Strategy (+$149,086,000 / +294 FTE) 

The TFA requires the IRS to develop and implement a Taxpayer Experience Strategy 

(TXS) to improve the taxpayer experience with the IRS. To fulfill the TXS requirement, the 

IRSʼs Taxpayer First Act Office (TFAO), in partnership with key internal and external 

stakeholders and subject matter experts, identified six areas of focus to inform the 

development and implementation of the TFA TXS including Community of Partners, 

Proactive Outreach & Education, Data Management & Analytics, Expanded Digital 

Services, Seamless Experience, and Focused Strategies for Reaching Underserved 

Communities. The FY 2022 request includes additional funding for Expanded Digital 

Services, Seamless Experience, and Focused Strategies for Reaching Underserved 

Communities. These investments include: 

• Expanded digital services that include secure document exchange, expanded 

payment options for taxpayers, and established digital authorization with 

eSignature; 

• Deliver a more seamless experience through expanded automated callback, 

increased use of the appointment process tool, and expanded AI-powered 

interactions such as chat-bot appointments; 

• Strengthened community presence by hiring and training new professionals in 

hard-to-reach communities; 

• Improved assistance for taxpayers living abroad by establishing authentication 

protocols; 

• Expanded multilingual strategies to increase the number of languages that forms, 

publications, and notices are translated into while also leveraging employee 

multi-lingual skills to provide multi-lingual assistance and services; and
IRS ‐ 13

• Strengthened access to and use of data to improve program delivery, inform 

Artificial Intelligence (AI) service delivery, and create a continuous feedback loop.

Expand Digital Services (+$101,754,000 / +169 FTE) 

Funding for this initiative will enhance the IRSʼs Online Account for individual taxpayers 

and expand this service to tax professionals. Some aspects of this initiative will rely on 

strengthening and expanding use of data. Additional authenticated online self-services 

will include account updates, secure messaging and notice delivery, full interaction 

history and issue status, refund tracking, expand digital payment options, increase 

electronic receipt of filings and scanning/data capture for paper filings, document 

upload, and more. Taxpayers will see expanded scope for e-signatures, secure document 

exchange and expanded payment options like Venmo and PayPal, and web chat and 

other digital assisted services, including: 

• Expanded Online Account features: 

• View Payment, Make a Payment, and Create A Payment Plan; 

• Digital Notices w/ Opt-in Subscription for Notifications; 

• Tax Professional Account: Establish Digital Power of Attorney (Form 2848) with 

eSignature; 

• Secure document exchange: Large and Small Business Secure Messaging/File 

Sharing (Document Upload); 

• Digitize more tax forms; 

• Expanded payment options to include tools like Venmo, PayPal, Apple Wallet, 

and Google Pay; and 

• Foundational IT infrastructure enhancements for eSignature solutions. 

Seamless Experience (+$35,063,000 / +115 FTE) 

The IRS will provide taxpayers with their preferred channel of service (web, phone, in 

person, etc.) and guide them through the necessary assistance to fulfill their needs. 

Information about the taxpayerʼs entire experience (past and present) will be available to 

every representative of the organization and across all channels in real time. With the 

introduction of an integrated omni channel model, a taxpayer could begin on IRS.gov 

and then shift to click to-call or chat options to engage an assistor without leaving the 

website. With the introduction of AI and robotics, the IRS can help the taxpayer. The 

following are highlights of what will be accomplished with FY 2022 funding: 

• Expand Automated Callback by adding 10 additional applications and provide 

Wait Time Transparency to the taxpayer. Currently, there is callback on 5 

applications, representing 19 percent of total average demand; 

• Continue integrating ECM systems towards a 360-degree view of the taxpayer for 

all taxpayer-facing employees; 
IRS ‐ 14

• Expand appointment process and system to all taxpayer-facing employees, 

including both service and compliance (currently, taxpayers can only make 

appointments with Taxpayer Assistance Center (TAC) employees); 

• Expand and improve routing options and create an escalation process to resolve 

issues outside the scope of the initial contact employee; 

• Develop AI-Powered Digital Appointments that will allow the taxpayer to use a 

chatbot to make appointments. 

Focused Strategies for Reaching Underserved Communities (+$12,269,000 / +10 FTE) 

Bringing together ongoing efforts within the IRS and leveraging its ecosystem of 

partnerships, the IRS will establish a consolidated program to engage with historically 

underserved communities to address issues of communication, education, transparency, 

trust, and limited access to quality products and services. As shown by the Earned 

Income Tax Credit (EITC) Underserved Outreach Project in 2014, developing specific 

strategies for underserved communities is crucial to increasing voluntary compliance. 

The EITC project increased filing rates by adding 53,000 filers and $27 million in 

additional taxes paid. The IRS will develop strategies for each underserved segment 

based on focused research, best practices, and lessons from partners on ways to 

improve interactions within these communities. Immediate benefits to the taxpayer will 

include new assistance in hard-to-reach areas where receiving help is currently difficult, 

convenience via virtual chatroom authentication procedures, and expanded access to 

additional information to assist international taxpayers. Aspects of this initiative will rely 

on improving the IRSʼs proactive outreach; expanding and strengthening the IRSʼs 

network of partnerships and leveraging relationships across public, private, and nonprofit sectors. The following are highlights of what will be accomplished with FY 2022 

funding: 

• Establish an organization within the IRS dedicated to developing, overseeing, and 

implementing these strategies with an agency-wide perspective and scope; 

• Establish stronger community presence by hiring and training new staff to add 

new professionals in hard-to-reach communities; 

• Use a data-driven approach to identifying content for translation to four 

additional languages; 

• Increase multi-lingual staffing and better leverage employee multilingual skills; 

• Authenticate international online accounts; 

• Host virtual chat rooms and live forums for international taxpayers; and 

• Expand access to information and services to taxpayers living abroad. 
IRS ‐ 15

Ensure Fairness of the Tax System +$340,267,000 / +1,833 FTE 

A successful economy depends on an effective tax collection system. For a tax system to 

operate productively, all citizens must pay their fair share. The IRS must serve taxpayers 

in a manner that facilitates their voluntary compliance by providing proper levels of 

staffing and support at points of significant taxpayer interaction. The IRS will continue to 

deter those who might evade their legal tax obligations and must appropriately pursue 

those who do so through strong, visible, and robust tax enforcement programs. 

Increase Large Corporation and Global High Wealth Returns (+$154,870,000 / +668 FTE) 

 

The IRS contends with a wide variety of business organizations operating in the United 

States and abroad with different filing requirements. These organizations include 

businesses, such as sole proprietors, corporations, partnerships, and S-corporations, as 

well as trusts and non-profits. Partnership businesses continue to be the fastest growing 

segment of all tax returns filed. Due to their complexity, these returns represent a 

significant compliance risk. The 2019 IRS Data Book reflects that in FY 2019, partnership 

return filings with the IRS exceeded 4.2 million – more than double the number of 

returns filed by corporations other than S corporations. Publication 6292, Fiscal Year 

Return Projections for the United States: 2020–2027, shows that on average, annual 

partnership filings will continue to outpace 1120s (4.976 million vs. 1.6 million) from 

FY 2021 to FY 2027. 

Another increasing source of compliance risk are high income/high wealth individuals, 

who frequently operate complex enterprises consisting of multiple related entities that 

often have international components. The IRS takes a unified look at the entire web of 

entities controlled by high wealth individuals to better assess the risks of 

noncompliance. This investment will allow the IRS to eventually double its compliance 

Position Type/Other Costs FTE Positions $000

Increase Enforcement Returns 540 1,080 $131,246

Revenue Agent 389 778 102,751

Manager 67.5 135 16,903

Economist 5 10 1,322

Engineer 5 10 1,292

Analyst 6 12 1,238

Support Staff 31.5 63 3,672

Tax Examiner 36 72 4,068

Other Direct Costs 128 256 $23,624

Attorney 21 42 4,757

Support Staff 3 6 290

Appeals Officer 78 156 14,461

Revenue Agent 12 24 2,346

Tax Examiner 14 28 1,770

Total 668 1,336 $154,870
IRS ‐ 16

efforts on partnerships and high wealth returns. The resources sought in this investment 

will also allow the IRS to devote more resources to examining large corporations with 

balance sheet assets > $10 million. Audits on large corporations fell significantly over 

the past decade, falling from an overall audit coverage rate of 16.6 percent in FY 2010 to 

just 6.2 percent in FY 2019. In FY 2010, virtually all corporations with assets over $20 

billion were audited. In FY 2019, only 50 percent were under audit. Finally, this 

investment will allow the IRS to increase its work in the Cross Border and Treaty and 

Transfer Pricing Operations to fully support corporate, partnership and high wealth 

exams. 

According to the 2019 IRS Data Book, audits on partnership returns dropped from over 

12,000 audits against 3.4 million returns filed in FY 2010 to 7,500 audits against 4.2 

million partnership returns in FY 2019. The taxation of partners and partnerships is 

governed by Subchapter K of the Internal Revenue Code, which is generally perceived to 

be fairly complex. In addition to a complex legal environment, IRS examiners are 

challenged in auditing partnerships by their tiered structures. Partnerships often have 

other partnerships among their partners creating layers and layers of partnerships that 

must be navigated by an auditor. At least one-quarter of partnerships have some tiering 

in their structures. In addition to a different body of substantive tax law, the Internal 

Revenue Code also mandates a different set of audit procedures for partnerships than 

other taxpayers. These audit procedures can also be complex. 

This investment will allow the IRS to: 

• Hire additional revenue agents who will be devoted solely to working partnership 

cases; 

• Increase the number of auditors with specialized knowledge in partnership law 

and audit procedures; 

• Double current audit coverage of partnerships within 4 years; and 

• Generate additional enforcement revenue of approximately $365.3 million from 

FY 2022-2026. 

This initiative will fund IRSʼs Global High Wealth (GHW) program, which uses 

identification models to filter based on estimated net worth in the tens of millions using 

data points including passive vs. non-passive income, interest, dividends, etc. The overall 

audit rate for the identified GHW taxpayer population (which ranges from 40,000-60,000 

taxpayers), is 0.2 percent. GHW uses a unique enterprise approach, which looks at the 

complete financial picture of high wealth individuals and the enterprises they control, 

that has proven successful, rather than the traditional return-by-return approach. GHW 

examiners average roughly $1,300 of recommended adjustments per exam hour on 
IRS ‐ 17

taxable entities, and over $10,000 of recommended adjustments per exam hour on 

partnerships. This investment will more than double the size of GHW, thereby allowing it 

to double the number of examinations it conducts once new employees have completed 

training and become fully productive. The requested investment is projected to result in 

additional enforcement revenue of approximately $794.5 million from FY 2022-2026. 

This initiative will increase passthrough and GHW examinations, by increasing staffing 

for: 

• GHW - The requested hires for GHW will allow for the creation of four additional 

GHW territories. Adding the additional agents will allow for an increased audit 

rate for its population, which presents an identified compliance risk. 

• Ogden Tax Equity and Fiscal Responsibility Act (TEFRA)/ Bipartisan Budget Act 

(BBA) Unit - The Ogden TEFRA Unit/BBA Unit will handle IRS-wide processing of 

all BBA cases and some non-BBA case processing. The Ogden TEFRA/BBA Unit 

will be responsible for new parts of a partnership audit created by the BBA. These 

new processes are extremely complex and critical to the successful 

implementation of BBA and successful partnership level examinations. In addition 

to handling the processing of the increased partnership audits intended under 

BBA, the Ogden TEFRA/BBA Unit will continue to work remaining TEFRA and nonTEFRA cases for several years due to overlaps in the TEFRA and BBA regimes. The 

requested hires will allow for creation of eight additional groups to handle BBA 

inventory. 

• Pass-through Entity (PTE) Practice Networks - The PTE practice networks currently 

support the revenue agents in the field with new and complex issues including 

subchapter K issues, tax reform and BBA. They also play a large role in campaign 

development and execution. As the number of partnership exams is increased, as 

is planned to address this identified compliance risk as intended by the BBA, the 

need for field support by the practice networks will grow. Additional staff is 

needed to grow the practice networks to a size that can effectively support 

increased passthrough examinations. The requested hires will allow for the 

creation of six additional practice network groups. 

• Geographic Practice Areas - Passthrough exams that are not part of the GHW 

program are conducted by revenue agents in three geographic practice areas. To 

significantly increase the number of passthrough examinations, additional 

geographic revenue agents are needed. The proposed hires would allow for 

creation of four new teams in each of the three geographic practice areas. 

Resources are requested for technical services positions and to support the new 
IRS ‐ 18

workload generated by the new hires, who will process the highly technical cases 

and prepare the statutory notices generated by the closures. 

Other Direct Costs (+$23,624,000 / +128 FTE) 

Expand Cyber Crimes and Applied Data Analytics Efforts (+$41,095,000 / +98 FTE) 

 

Data sets and data science methodologies now exist to connect the most remote 

financial transaction between apparent disparate actors which can be the key piece of 

evidence to break open the most complex financial investigation. These techniques are 

integral to the work of the IRSʼs Criminal Investigation Division (CI) and criminal case 

development. 

This investment will be used to: 

• Establish a Criminal Data Team to identify existing and new data sources; 

• Hire inventory data and categorize its use; 

IRS Activity Cost FTE Explanation

Appeals 18,577 104

The initiative will generate additional work for Appeals Team Case Leader (ATCL) in the 

Compliance Integration CIC workstream, the GHW arena and the Partnership arena. For 

Appeals to provide a high level of customer service and appropriately resolve these cases 

Appeals will require an additional positions.

Chief Counsel 5,047 24

The initiative staffing request is projected to increase the number of audits for the GHW, PTE 

and Large Corporate Compliance (LCC) programs. In order to support this investment, Counsel 

is requesting 48 additional positions. The additional staffing will provide a mix of attorneys in 

the LB&I Division Counsel to provide legal advice to the client and handle the additional trial 

cases generated by the expansion of these programs, additional subject matter experts in the 

Technical Associate Offices, and accompanying legal support. The number and mix of 

requested positions is based on the complexity and estimated increase in workload.

Total $23,624 128

Dollars in Millions

Position Type/Other Costs FTE Positions $000

Cyber Crimes and Data Analytics 93 186 $40,013

Special Agent 42 84 29,449

Analyst 41 82 5,244

IT Specialist 10 20 1,452

Contractual Services 3,868

Other Direct Costs 5 10 $1,082

Attorney 4 8 992

Support Staff 1 2 90

Total 98 196 $41,095
IRS ‐ 19

• Perform validation as needed; 

• Allow CI to intake, interrogate, mine and operationalize its available data 

appropriately; and 

• Align leading data practices in the private sector and other innovation 

opportunities. 

Currently, the data created/received through investigations, received from law 

enforcement partners, and received through disclosures and referrals is not categorized 

or stored in an accessible location. As a result, CIʼs ability to use that data for analytics 

and enforcement operations is very limited. New data sources, including open source 

and data held by other agencies, are identified almost daily and in most cases is 

currently not obtained or mined for its potential. A CI Data Team responsible for all CI 

data activities will make data intake and processing routine to enable effortless 

integration into CIʼs most complex investigations and ultimately advance CIʼs ability to 

enforce tax compliance. 

CI is authorized to use a wide array of investigative techniques, including developing 

innovative approaches to investigations using existing data sets, commercial 

(purchased) data sets, data sets from other government agencies, and open source data 

sets. Purchase and ingestion of this data into a modern computing environment 

available to CI users requires funding. Additionally, CI partners with internal and external 

stakeholders to use robust advanced modeling and data-driven algorithms to deliver 

high impact investigations which either preempt or quickly address emerging threats 

and advance the mission of the IRS. A portion of these activities will require contractor 

funding for lead generation and case development using these modern techniques. 

In FY 2020, CIʼs new National Analytics team within CIʼs Applied Analytics section worked 

with 9 Field and HQ offices on pilot projects to test the efficacy of advanced analytical 

modeling in case development and field office investigations. As a result, the need for 

analytical services across the field offices to pursue criminal tax enforcement far 

outpaced CIʼs Applied Analytics capacity. This initiative will hire and train an additional 

82 analysts (investigative analysts and data scientists) to work across the field offices on 

larger initiatives using advanced statistical modeling and machine learning techniques 

to identify criminals, criminal patterns, and illicit behaviors. CIʼs Applied Analytics would 

stand up two or more teams to work with CIʼs investigative offices. With this initiative, CI 

will develop and train Field Office and Headquarters personnel in the tools/technology 

and the methodologies used to grow overall cyber and analytical capabilities. CI will also 

bring advanced modeling initiatives to maturity and provide more opportunities for 

innovation. In addition, funding will allow the IRS to advance IT technology to assist in 

the efforts of investigating cybercrimes. 
IRS ‐ 20

CI continues to advance the level and degree of work performed in cybercrimes, 

whether it pertains to the investigation of dark web marketplaces, cryptocurrencyrelated fraud, or a host of other internet-based activities. The Cyber Support Unit will 

allow the IRS to provide a specialized skillset of capabilities around open source 

intelligence, dark web research and cryptocurrency tracing aspects in support of 

ongoing investigations in the field. 

CI traces money all around the world, whether transmitted within the shadows of the 

dark web or otherwise. An example of CIʼs ability to detect criminal activity involved a 

darknet-based Bitcoin Mixing Service. This major case investigated a darknet search 

engine and money laundering service that was integrated into major darknet markets 

such as AlphaBay, Silk Road II, Abraxxas, and many others. It worked by tumbling 

bitcoins from users and vendors on darknet markets with new, “clean” bitcoin to 

obfuscate the illicit source of the bitcoin. Approximately 356,000 bitcoins moved 

through the site, with a value of over $300 million at the time of the transactions. Data 

obtained from these servers will assist investigations all around the world, since 

criminals use tumblers to obfuscate the crypto trail. Evidence obtained from this 

investigation will serve as the missing link or puzzle piece in many sophisticated bitcoin 

transaction investigations. 

Cyber Agents will be working the most complex cyber investigations within CI and 

afforded the necessary access to specialized tools and resources needed to prosecute 

this level of criminals. IRS will use these funds to stand-up and equip the Advanced 

Collaboration and Data Center (ACDC), including 84 Special Agents, tools, technology, 

and capabilities in one physical location. This new center will be able to complete 

approximately 300 additional criminal investigations from FY 2022 to FY 2026. 

Other Direct Costs (+$1,082,000 / +5 FTE) 

These funds will be used to hire an additional attorney foreach of the six Criminal Tax 

geographic areas; two attorneys in the national Office; two administrative support 

positions; and one cyber-focused administrative position. These positions will provide 

critical mission support to the cybercrime and data analytics efforts.

IRS Activity Cost FTE Positions Explanation 

Chief Counsel 1,082 5 10 

Support case agents investigating cybercrimes or cyberenabled investigations (including crypto currency) and 

render advice to CCUs thereby reducing the tax gap in 

this area. 

Total $1,082 5 10 
IRS ‐ 21

Strengthen Taxpayer Confidence in the Tax-Exempt Sector (+$13,473,000 / +84 FTE) 

The IRS strives to support taxpayer needs in the tax-exempt sector. There are over 1.8 

million exempt organizations which are estimated to have over $2.9 trillion in revenue. 

In addition, there are 130 million retirement plan participants with $8 trillion in 

retirement assets. 

Taxpayer confidence in the tax-exempt sector is essential to preserving and protecting 

charitable tax deductions and the retirement savings of everyday Americans. The IRS 

proposes a multifaceted approach to increase taxpayer confidence and ultimately 

protect these taxpayer investments to include: 

• Protect Retirement Plans: Conduct enforcement activities to identify compliance 

issues with sponsored retirement plans and assist small businesses with their 

regulatory requirements to maintain their tax preferred status. These activities 

ultimately protect their employeesʼ retirement plan contributions. 

• Address Unrelated Business Income Tax (UBIT): Assess unpaid taxes for taxable 

activities in the exempt organization sector through face-to-face and remote 

enforcement activities. Overall, these activities will result in increased compliance 

and help preserve the publicʼs confidence in their charitable donations. 

• Fraud Prevention: Support expanded fraud enforcement activities. While most 

stakeholders and taxpayers in the tax-exempt sector strive to remain compliant, 

there are purposeful bad actors engaging in increasingly complex transactions 

and structures to avoid taxation and even mask other illegal activities. These 

resources will be applied to directly address these emerging fraudulent activities 

and trends in the tax-exempt sector. 

Position Type/Other Costs FTE Positions $000

Protect Retirement Plans 34.5 69 $5,527

Revenue Agent 30 60 4,860

Manager 3 6 456

Support Staff 1.5 3 211

Protect Tax-Exempt Sectors and Government Entities 34.5 69 $5,526

Revenue Agent 30 60 4,860

Manager 3 6 456

Support Staff 1.50 3 210

Fraud Prevention 15 30 $2,420

Revenue Agent 14 28 2,268

Manager 1 2 152

Total 84 168 $13,473
IRS ‐ 22

Once these staffing resources are fully trained, the IRS will be able to conduct an 

additional 3,192 closures related to enforcement activities. As a result, the publicʼs 

confidence will be strengthened as retirement plans become more compliant, unrelated 

business income taxes are addressed, and fraud is prevented in these important taxexempt arenas. 

Increase Pre-Refund Audit and Examination (+$32,895,000 / +332 FTE) 

The Correspondence Examination program addresses the tax gap through increased 

enforcement individual reporting compliance, such as refundable credits. The additional 

staffing will be used to reverse and prevent a decline in the audit coverage rate. 

Enhance Enforcement Efforts (+$77,065,000 / +589 FTE) 

This initiative requests additional employees to increase efforts in critical Examination 

and Collection activities. The decline in staffing since FY 2010 has led to a decrease in 

the individual audit coverage rate from 1.0 percent in Tax Year 2010 to 0.43 percent in 

Tax Year 2017, which increases the risk to the integrity of the nationʼs voluntary tax 

Position Type/Other Costs FTE Positions $000

Increase Pre-Refund Audit & Exam

Tax Examiner 332 332 29,256

Contractual Services 3,639

Total 332 332 $32,895

Position Type/Other Costs FTE Positions $000

Collection Programs 252.5 505 $29,574

Revenue Officer 85 170 13,379

Customer Service Representative 85 170 8,568

Tax Examiner 79.5 159 7,329

Support Staff 3 6 298

Examination Programs 249.5 499 $32,740

Revenue Agent 132 264 21,627

Tax Examiner 113.5 227 10,733

Support Staff 4 8 380

Office of Fraud Enforcement 7 14 $984

Revenue Agent 7 14 984

Other Direct Costs 80 160 $13,767

Revenue Agent 14 28 2,882

Appeals Officer 21 42 3,893

Attorney 26 52 5,125

Analyst 19 38 1,867

Total 589 1,178 $77,065
IRS ‐ 23

compliance system. The collection coverage rate, which is defined as the volume of 

collection work disposed compared to the volume of collection work available, has also 

seen a decline, dropping from 50.1 percent in FY 2010 to just 34.9 percent in FY 2020. 

These trends, if they continue unabated, will lead to an increased risk in tax reporting or 

failure to file required tax returns. The additional resources will fund compliance 

priorities and allow for earlier case assignments and resolution. 

Examination programs will provide increased emphasis on audits of small corporations 

and sole proprietors with business income. Collection programs will focus their efforts 

on high income non-filers and delinquent employment taxes. These resources will: 

• Increase the number of audits 

and close more than 4,669 field 

examination cases and 40,610 

correspondence examination 

cases; 

• Expand programs that address 

non-filing and underpayment of 

taxes to handle 9,100 additional 

collection cases; 

• Address an additional 

113,400 Automated Collection 

System (ACS) cases; 

• Expand several Compliance 

Services Collection Operations 

programs that address non-filing 

of taxes through the notice process by 159,000 notice dispositions and cases; and

• Strengthen ties between the civil and criminal enforcement arms of the IRS and 

with other federal departments and agencies to facilitate civil enforcement action 

in all situations.

Major Activities Projected

Revenue ($M) Projected Closures

Field Collection 175.7 9,123 

Automated Collection System 418.4 113,401 

Compliance Services Collection Operation/Non-Filer 60.3 159,030 

Field Examination 132.6 4,669 

Correspondence Examination 212.0 40,610 

Document Matching 303.3 200,574 

Total $1,302.3 286,223 
IRS ‐ 24

Other Direct Costs (+$13,767,000 / +80 FTE) 

Expand Tax Compliance (+$20,869,000 / +62 FTE) 

This investment will enhance overall enforcement efforts, increase the number of 

convictions, and expand the IRSʼs capabilities in core tax enforcement areas. An 

additional 300 investigations will be completed after the new agents reach full potential. 

This investment will support IRS Strategic Goals by enforcing domestic and international 

compliance across all program areas while utilizing innovative approaches and 

strengthening existing expertise. Further, this investment will support initiatives 

designed to identify trends, detect high-risk areas of noncompliance, and prioritize 

enforcement approaches by applying advanced analytics. 

These resources will also allow the IRS to increase its participation in multi-agency task 

forces dedicated to tax administration, which will: 

• Enhance cooperation with state and local law enforcement agencies in 

jurisdictions where prosecutorial actions would have the greatest influence; 

• Obtain information about ongoing criminal activity involving federal and state tax 

refunds allowing expedited prosecution by the Department of Justice to reduce 

the financial loss to the IRS and the taxpayer; and 

IRS Activity Cost FTE Positions Explanation

Appeals 6,630 35 70 Support Collection efforts and appropriately resolve these cases while providing a high 

level of customer service. 

Chief Counsel 5,125 26 52 Provide support for increases in requests for legal advice, litigation assistance, and 

collection due process.

SB/SE Operations Support 824 6 12 Support hiring, training, human capital, technology needs, data analytics and resource 

requirements for the Business Unit.

Privacy, Governmental 

Liaison, and Disclosure 916 11.5 23 Address the increase in Freedom of Information Act requests as a result of increased 

compliance activity.

Human Capital Office 272 1.5 13

Handle the increase in front-line positions and the expectation that new managerial 

positions will be created. Labor Relations support begins in the first year and continues 

throughout a manager's career, as needed. 

Total $13,767 80 170

Dollars in thousands

Position Type/Other Costs FTE Positions $000

Expand Tax Compliance

Special Agent 48 96 $19,027

Analyst 8 16 $1,023

IT Specialist 6 12 $819

Total 62 124 $20,869
IRS ‐ 25

• Target larger-scale crime rings for maximum compliance results and publicity. 

These resources will also support special agents conducting outreach to state and local 

law enforcement to expand the Law Enforcement Assistance Program. In addition, 

special agents will extend outreach efforts to practitioners from filing season only to 

year-round to provide information and address return preparer concerns. 

This investment also will provide analysts to support this investment by gathering data 

to identify violations of tax and other financial laws and regulations. They will provide 

analysis of this information, capturing the full scope of the identified questionable 

activities and provide hands-on support to the criminal investigation. They will develop 

queries to obtain the necessary information and to perform an assessment of the 

responses to discern the interrelationships to determine impact and possible 

ramifications of the tax-related criminal and financial activities. 
IRS ‐ 26

Improve Live Assistance +$318,000,000 / +4,203 FTE 

Increase Telephone Level of Service & Reduce Correspondence Inventory

(+$286,640,000 / +3,853 FTE) 

 

This investment will allow the IRS to increase the telephone level of service (LOS) and 

significantly reduce the correspondence inventory. The IRS toll-free telephone customer 

service operation is a key part of the IRSʼs service delivery. This investment provides a 

projected LOS of 75 percent in FY 2022, assuming phone demand returns to prepandemic levels and the IRS can provide in-person services at pre-pandemic levels. 

These funds will also be used to reduce the current projected FY 2022 ending 

correspondence inventory by about 400,000. The FY 2022 projection is down from a 

projected FY 2021 ending correspondence level of about 1.4 million. Providing quality 

taxpayer service is crucial to ensuring voluntary compliance. 

TAC Optimization Strategy (+$31,360,000 / +350 FTE)

 

This investment funds staffing increases to achieve optimal staffing levels for IRS 

Taxpayer Assistance Centers (TACs), improving the taxpayer experience. These staffing 

levels will allow the IRS to re-open TACs and restore office hours, allowing taxpayers to 

schedule appointments sooner. With increased TAC funding, the IRS anticipates 

additional contacts with over 880,000 taxpayers.

Position Type/Other Costs FTE Positions $000

Improve Level of Service 3,606 2,715 $265,465

Seasonal 2,297 1,406 162,582

Customer Service Representative 1,226 1,226 97,222

Manager 83 83 5,661

Reduce Correspondence Inventory 247 247 $21,175

Customer Service Representative 227 227 19,811

Manager 20 20 1,364

Total 3,853 2,962 $286,640

Position Type/Other Costs FTE Positions $000

Taxpayer Assistance Centers (TAC)

Accounts Management Representative 350 350 29,225

Contractual Services 2,135

Total 350 350 $31,360
IRS ‐ 27

IRS Integrated Modernization Business Plan +$78,143,000 / +18 FTE 

 

The Integrated Modernization Business Plan is a key IRS priority. The plan provides a 

roadmap for improving IRS systems and taxpayer services. Additionally, the plan will 

enable the IRS to provide quality customer service to taxpayers and deliver long-term 

budget efficiencies as the IRS modernizes capabilities currently provided via legacy 

applications. The budget requests an increase of $78 million for a total appropriated 

budget of $305 million in FY 2022. 

The request funds: 

• Web Applications ($30 million): The IRS will expand the capability for taxpayers to 

use an online account, building on current capabilities to create and submit 

online installment agreements and make payments. In addition, it will expand the 

Tax Pro effort benefiting authorized tax professionals with capabilities that 

modernize certain paper-based processes to help resolve issues with the IRS on 

behalf of their clients. In FY 2022, the IRS will begin expanding the Tax Pro 

capabilities to include the ability to view/manage new and pending authorization 

requests, view/print confirmations of submission, and expiration of out-of-date 

authorizations. These capabilities will reduce the amount of paper forms, reduce 

taxpayer and tax professional burden, reduce the time it takes to submit 

authorizations, and increase data accuracy and security to ensure the entire 

process is secure in confirming and protecting identity. 

• Taxpayer Digital Communications Outbound Notification ($10 million): The IRS 

will continue developing digital notices available through a secure online account 

for taxpayers who prefer that channel over mailed correspondence. In addition, 

the IRS will allow taxpayers the choice to opt in or opt out of receiving paper 

notices and receive notifications through email or text message. This investment 

will increase taxpayer response rates to notices, reduce burden on taxpayers and 

the IRS, reduce printing and postage requirements, and promote more efficient 

interactions. 

• Live Assistance ($15 million): The investment funds the Live Assistance program 

to expand customer callback capabilities, allowing taxpayers to keep their place 

Position Type/Other Costs FTE Positions $000

Integrated Modernization Business Plan

IT Specialist 17.5 35 1,270

Contractual Services 65,045

Hardware and Software 11,828

Total 17.5 35 $78,143
IRS ‐ 28

in queue without remaining on the phone, and the Live Chat capability that 

allows taxpayers to interact with assistors in a web-based chat session. The IRS 

will also deploy machine learning and natural language processing to quickly 

answer common taxpayer inquiries and improve call routing to deliver expert 

service to customers and empower taxpayers with real-time responses. 

• Customer Account Data Engine 2 (CADE2) ($105 million): Since the Individual 

Master File (IMF) was built almost 60 years ago, the IRS has changed legacy base 

code to reflect annual tax law changes. As a result, the base code of IMF includes 

embedded business logic written in outdated programming languages that only 

an extremely small number of IRS personnel understand. The Individual Tax 

Processing Engine (ITPE) is a critical project which converts approximately 

200,000 lines of legacy assembly language code to modern software language. 

This code conversion is a major milestone towards retiring the Individual Master 

File (IMF). In FY 2022, funding will be used to continue the ITPE project and code 

conversion. Upon conclusion, this will reduce the burden of ongoing 

maintenance and routine updates due to tax law changes through a common 

data model. It will enable enhanced data accessibility both within the IRS and for 

taxpayers, and security controls. CADE 2 will support advanced analytical 

capabilities addressing key issues of compliance, fraud, and identity theft. These 

funds will also be used to start: 

o The CADE 2 Target State which provide state-of-the-art individual taxpayer 

account processing and data-centric technologies for maintaining and 

balancing individual taxpayer account data to reduce operations and 

maintenance costs, improve taxpayer service quality, enhance 

responsiveness to legislative changes, and eliminate financial weaknesses. 

The program will allow the IRS to retire the most complex portion of the 

Individual Master File (IMF), a step towards fully retiring the IMF. 

• Enterprise Case Management (ECM) ($64 million): ECM provides the IRS with an 

enterprise solution for streamlining case and workload management processes to 

improve the quality and effectiveness of case interactions with individual 

taxpayers, small and large businesses, tax-exempt organizations, and a wide 

spectrum of intermediaries. ECM will digitize case information, provide business 

automation, and increase resource alignment across IRS business units to 

improve customer service and reduce the timeframe for case resolution. In FY 

2020 and FY 2021, initial releases delivered the foundational platform and 

capabilities of a new cloud-based case management solution. Subsequent ECM 

releases will provide integrated case management across the IRS. In FY 2022, ECM 
IRS ‐ 29

will include the data integration with individual taxpayer account data needed for 

several business processes. These capabilities will enable the program to scale 

and migrate additional business processes concurrently in the Release 4 

timeframe. 

• NextGen Infrastructure (NGI) ($15 million): This investment will allow the IRS to 

continue modernizing its infrastructure base (hardware, software, network 

resources, and services) and support agile software development and delivery 

practices. 

• Vulnerability and Threat Management ($20 million): This investment will enable 

the IRS to improve security integration in system development and automate 

security testing, apply use cases to enhance security audit analytics and 

compliance, and enhance data protection through encryption. 

• Identity and Access Management ($19 million): This investment in user identity 

controls, privileged access protections, building access security, and software 

security configuration will help the IRS mitigate the risk of unauthorized access to 

tax data as the IRS delivers new online tools to taxpayers and the number of 

private sector data breaches increases. 

• Security Operations and Management ($12 million): This investment will deliver a 

next generation secure operations center, improved incident analysis and forensic 

network investigation, and protect High Value Assets by blocking network access 

for unauthorized users. 

• Architecture, Integration, and Management ($15 million): This investment 

provides engineering management capabilities essential to delivering a large, 

complex modernization program. It also delivers IRS systems strategy, 

architecture, and engineering capabilities for the major modernization projects 

across all technology platforms; IT Infrastructure, Business Applications, Data 

Management, and IT Security. The AIM program translates enterprise and project 

objectives into targeted, actionable investments to provide the framework and 

direction for cohesive, successful modernization. 
IRS ‐ 30

Electric Vehicles and Associated Infrastructure +$2,966,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at 

Home and Abroad”, the U.S. Department of the Treasury joins in the Administrationʼs 

priority to develop a comprehensive plan to create good jobs and stimulate clean 

energy industries by revitalizing the Federal Governmentʼs sustainability efforts. This 

includes Treasuryʼs commitment to use all available procurement authorities to augment 

its Departmentwide fleet management program with a continued focus on the leasing 

of electric vehicles (EV) and purchasing, installing, and maintaining essential 

infrastructure. The planned resources will help Treasury comply with the requirements 

set forth by E.O. 14008 and reduce the carbon footprint of emissions into the 

atmosphere by acquiring an updated fleet of zero-emissions vehicles that can support 

mission operations. 

• For FY 2022, the IRS-CI will receive $2,576,000 to fund the initial investment of its 

fleet to EV. Of that money, a to be determined amount will be allocated to the 

purchase, installation, maintenance, and/or upgrade of infrastructure required to 

maintain an EV fleet management program. Currently, IRS-CI has a total of 2,294 

vehicles in its fleet, of which zero are EVs. 

• For FY 2022, the Facilities Management and Security Services (IRS-FMSS) will 

receive $390,000 to fund the initial investment of its fleet to EV. Of that money, a 

to be determined amount will be allocated to the purchase, installation, 

maintenance, and/or upgrade of infrastructure required to maintain an EV fleet 

management program. Currently, IRS-FMSS has a total of 246 vehicles in its fleet, 

of which zero are EVs. 

Position Type/Other Costs FTE Positions $000

Electric Vehicles and Associated 

Infrastructure

Contractual Services 2,966

Total $2,966
IRS ‐ 31

1.3 – Object Classification (Schedule O) Obligations

Dollars in thousands

Internal Revenue Service

Object Classification

FY 2020

Operating Plan

FY 2021

Operating Plan

FY 2022

Request

11.1 Full-Time Permanent Positions 6,107,285 6,106,908 6,650,828

11.3 Other than Full-Time Permanent Positions 85,443 86,007 88,934

11.5 Other Personnel Compensation 208,386 301,867 323,250

11.8 Special Personal Services Payments 20,646 29,681 30,358

11.9 Personnel Compensation (Total) 6,421,760 6,524,463 7,093,370

12.1 Personnel Benefits 2,328,557 2,400,622 2,651,834

13.0 Benefits to Former Personnel 28,280 20,240 20,701

Total Personnel and Compensation Benefits $8,778,597 $8,945,325 $9,765,905

21.0 Travel 123,645 69,038 119,661

22.0 Transportation of Things 23,786 23,287 34,776

23.1 Rental Payments to GSA 590,109 579,736 602,332

23.2 Rent Payments to Others 12,161 7,196 7,450

23.3 Communications, Utilities, & Misc 320,953 317,042 355,711

24.0 Printing & Reproduction 32,597 32,307 34,005

25.1 Advisory & Assistance Services 745,831 1,021,158 1,109,192

25.2 Other Services 102,366 89,204 120,456

25.3 Purchase of Goods & Services from Govt. Accounts 144,519 155,815 174,617

25.4 Operation & Maintenance of Facilities 186,183 199,042 215,473

25.5 Research & Development Contracts

25.6 Medical Care 14,275 15,098 17,068

25.7 Operation & Maintenance of Equipment 64,025 70,123 83,295

25.8 Subsistence & Support of Persons

26.0 Supplies and Materials 31,521 32,281 38,460

31.0 Equipment 247,204 269,122 365,756

32.0 Land and Structures 37,633 32,645 50,778

33.0 Investments & Loans

41.0 Grants, Subsidies 48,000 54,000 54,960

42.0 Insurance Claims & Indemnities 2,149 2,135 2,448

43.0 Interest and Dividends

44.0 Refunds

91.0 Unvouchered 4,500 4,500 4,583

Total Non-Personnel $2,731,457 $2,973,729 $3,391,021

New Appropriated Resources $11,510,054 $11,919,054 $13,156,926

Appropriations:

Taxpayer Services 2,535,554 2,587,606 2,940,876

Enforcement 4,909,500 5,004,622 5,462,823

Operations Support 3,885,000 4,104,102 4,448,195

Business Systems Modernization 180,000 222,724 305,032

New Appropriated Resources $11,510,054 $11,919,054 $13,156,926

FTE 74,726 73,409 79,348

See footnotes in 1.1 -- Appropriations Detail Table

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 million 

Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.
IRS ‐ 32

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes

TAXPAYER SERVICES 

For necessary expenses of the Internal Revenue 

Service to provide taxpayer services, including 

pre-filing assistance and education, filing and 

account services, taxpayer advocacy services, 

and other services as authorized by 5 U.S.C. 

3109, at such rates as may be determined by 

the Commissioner, [$2,555,606,000] 

$2,940,876,000, of which not less than 

$11,000,000 shall be for the Tax Counseling 

for the Elderly Program, of which not less than 

13,000,000 shall be available for low-income 

taxpayer clinic grants, of which not less than 

$30,000,000, to remain available until 

September 30, [2022] 2023, shall be available 

for the Community Volunteer Income Tax 

Assistance Matching Grants Program for tax 

return preparation assistance, and of which not 

less than $211,000,000 shall be available for 

operating expenses of the Taxpayer Advocate 

Service: Provided, That of the amounts made 

available for the Taxpayer Advocate Service, 

not less than $5,500,000 shall be for identity 

theft and refund fraud casework. (Department 

of the Treasury Appropriations Act, 2022.)

ENFORCEMENT 

For necessary expenses for tax enforcement 

activities of the Internal Revenue Service to 

determine and collect owed taxes, to provide 

legal and litigation support, to conduct 

criminal investigations, to enforce criminal 

statutes related to violations of internal 

revenue laws and other financial crimes, to 

purchase and hire passenger motor vehicles 

Language required for the proposed 

program integrity allocation 

adjustment. More information about 

the allocation adjustment can be 

found in section 4.1 – 

Appropriations Detail Table with 

Program Integrity Allocation 

Adjustment of the Appendix. 
IRS ‐ 33

(31 U.S.C. 1343(b)), and to provide other 

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

rates as may be determined by the 

Commissioner, [$5,212,622,000] 

$5,462,823,000, of which not to exceed 

$250,000,000 shall remain available until 

September 30, [2022] 2023; of which not less 

than $60,257,000 shall be for the Interagency 

Crime and Drug Enforcement program; and of 

which 

not to exceed [$15,000,000] $21,000,000 shall 

be for investigative technology for the Criminal 

Investigation Division: Provided, That the 

amount made available 

for investigative technology for the Criminal 

Investigation Division shall be in addition to 

amounts made available for the Criminal 

Investigation Division under the "Operations 

Support" heading. 

In addition, $287,452,000, for an additional 

amount to meet the terms of a concurrent 

resolution on the budget for tax enforcement 

activities under this heading, 

including tax compliance to address the 

Federal tax gap: Provided, That such additional 

amounts may not be transferred or 

reprogrammed for any other activity. 

(Department of the Treasury Appropriations 

Act, 2022.) 

OPERATIONS SUPPORT 

For necessary expenses of the Internal Revenue 

Service to support taxpayer services and 

enforcement programs, including rent 

payments; facilities services; printing; postage; 

physical security; headquarters and other IRSwide administration activities; research and 

statistics of income; telecommunications; 
IRS ‐ 34

information technology development, 

enhancement, operations, maintenance, and 

security; the hire of passenger motor vehicles 

(31 U.S.C. 1343(b)); the operations of the 

Internal Revenue Service Oversight Board; and 

other services as authorized by 5 

U.S.C. 3109, at such rates as may be 

determined by the Commissioner; 

[$3,928,102,000] $4,448,195,000, of which not 

to exceed $275,000,000 shall remain available 

until September 30, [2022] 2023; of which not 

to exceed $10,000,000 shall remain available 

until expended for acquisition of equipment 

and construction, repair and renovation of 

facilities; of which not to exceed $1,000,000 

shall remain available until September 30, 

[2023] 2024, for research; of which not less 

than $10,000,000, to remain available until 

expended, shall be available for establishment 

of an application through which entities 

registering and renewing registrations in the 

System for Award Management may request 

an authenticated electronic certification stating 

that the entity does or does not have a 

seriously delinquent tax debt; and of which not 

to exceed $20,000 shall be for official reception 

and representation expenses: Provided, That 

not later than 30 days after the end of each 

quarter, the Internal Revenue Service shall 

submit a report to the Committees on 

Appropriations of the House of 

Representatives and the Senate and the 

Comptroller General of the United States 

detailing major information technology 

investments in the Internal Revenue Service 

Integrated Modernization Business Plan 

portfolio, including detailed, plain language 

summaries on the status of plans, costs, and 

results; prior results and actual expenditures of 

the prior quarter; upcoming deliverables and 
IRS ‐ 35

costs for the fiscal year; risks and mitigation 

strategies associated with ongoing work; 

reasons for any cost or schedule variances; and 

total 

expenditures by fiscal year: Provided further, 

That the Internal Revenue Service shall include, 

in its budget justification for fiscal year [2022] 

2023, a summary 

of cost and schedule performance information 

for its major information technology systems. 

In addition, $129,445,000, for an additional 

amount to meet the terms of a concurrent 

resolution on the budget for tax enforcement 

activities under this heading, 

including tax compliance to address the 

Federal tax gap: Provided, That such additional 

amounts may not be transferred or 

reprogrammed for any other activity. 

(Department of the Treasury Appropriations 

Act, 2022.) 

BUSINESS SYSTEMS MODERNIZATION 

For necessary expenses of the Internal Revenue 

Service's business systems modernization 

program, [$222,724,000] $305,032,000, to 

remain available until September 30, [2023] 

2024, for the capital asset acquisition of 

information technology systems, including 

management and related contractual costs of 

said acquisitions, including related Internal 

Revenue Service labor costs, and contractual 

costs associated with operations authorized by 

5 U.S.C. 3109: Provided, That not later than 30 

days after the end of each quarter, the Internal 

Revenue Service shall submit a report to the 

Committees on Appropriations of the House of 

Representatives and the Senate and the 

Comptroller General of the United States 
IRS ‐ 36

detailing major information technology 

investments in the Internal Revenue Service 

Integrated Modernization Business Plan 

portfolio, including detailed, plain language 

summaries on the status of plans, costs, and 

results; prior results and actual 

expenditures of the prior quarter; upcoming 

deliverables and costs for the fiscal year; risks 

and mitigation strategies associated with 

ongoing work; reasons for any cost or 

schedule variances; and total expenditures by 

fiscal year. 

(Department of the Treasury Appropriations 

Act, 2022.)

ADMINISTRATIVE PROVISIONS-INTERNAL 

REVENUE SERVICE (INCLUDING TRANSFER OF 

FUNDS) 

SEC. 101. Not to exceed 4 percent of the 

appropriation made available in this Act to the 

Internal Revenue Service under the 

"Enforcement" heading, and not to exceed 

5 percent of any other appropriation made 

available in this Act to the Internal Revenue 

Service, may be transferred to any other 

Internal Revenue Service appropriation upon 

[the] advance [approval of]notice to the 

Committees on Appropriations of the House of 

Representatives and the Senate. 

SEC. 102. The Internal Revenue Service shall 

maintain an employee training program, which 

shall include the following topics: taxpayers' 

rights, dealing courteously with taxpayers, 

cross-cultural relations, ethics, and the 

impartial application of tax law. 
IRS ‐ 37

SEC. 103. The Internal Revenue Service shall 

institute and enforce policies and procedures 

that will safeguard the confidentiality of 

taxpayer information and protect taxpayers 

against identity theft. 

SEC. 104. Funds made available by this or any 

other Act to the Internal Revenue Service shall 

be available for improved facilities and 

increased staffing to provide 

sufficient and effective 1–800 help line service 

for taxpayers. The Commissioner shall continue 

to make improvements to the Internal Revenue 

Service 1–800 help 

line service a priority and allocate resources 

necessary to enhance the response time to 

taxpayer communications, particularly with 

regard to victims of tax-related crimes. 

SEC. 105. The Internal Revenue Service shall 

issue a notice of confirmation of any address 

change relating to an employer making 

employment tax payments, and such notice 

shall be sent to both the employer's former 

and new address and an officer or employee of 

the Internal Revenue Service shall give special 

consideration to an offer-in-compromise from 

a taxpayer who has been the victim of fraud by 

a third party payroll tax preparer. 

SEC. 106. None of the funds made available 

under this Act may be used by the Internal 

Revenue Service to target citizens of the 

United States for exercising any 

right guaranteed under the First Amendment 

to the Constitution of the United States. 

SEC. 107. None of the funds made available in 

this Act may be used by the Internal Revenue 
IRS ‐ 38

Service to target groups for regulatory scrutiny 

based on their ideological 

beliefs. 

SEC. 108. None of funds made available by this 

Act to the Internal Revenue Service shall be 

obligated or expended on conferences that do 

not adhere to the procedures, 

verification processes, documentation 

requirements, and policies issued by the Chief 

Financial Officer, Human Capital Office, and 

Agency-Wide Shared Services as a result of the 

recommendations in the report published on 

May 31, 2013, by the Treasury Inspector 

General for Tax Administration entitled 

"Review of the August 2010 Small 

Business/Self-Employed Division's Conference 

in Anaheim, California" (Reference Number 

2013–10–037). 

SEC. 109. None of the funds made available in 

this Act to the Internal Revenue Service may be 

obligated or expended— 

(1) to make a payment to any employee under 

a bonus, award, or recognition program; or 

(2) under any hiring or personnel selection 

process with respect to re-hiring a former 

employee; unless such program or process 

takes into account the conduct and Federal tax 

compliance of such employee or former 

employee. 

SEC. 110. None of the funds made available by 

this Act may be used in contravention of 

section 6103 of the Internal Revenue Code of 

1986 (relating to confidentiality 

and disclosure of returns and return 

information). 
IRS ‐ 39

SEC. 111. Notwithstanding any Congressional 

notification requirements for a reprogramming 

of funds in this Act, funds provided in this Act 

for the Internal Revenue Service shall be 

available for obligation and expenditure 

through a reprogramming of funds that 

augments or reduces existing programs, 

projects, or activities by up to $10,000,000 

without prior Congressional notification of 

such action. 

SEC. 112. There is hereby established the 

Internal Revenue Service Working Capital Fund 

(Fund), which shall be available without fiscal 

year limitation, for expenses necessary for 

facility services, technology, and other 

centralized services that the Commissioner of 

Internal Revenue, subject to prior notice to the 

Office of Management and Budget, deems 

appropriate and advantageous to provide on a 

reimbursable basis: Provided, That amounts 

deposited in the Fund shall be in 

addition to funds otherwise available for such 

purposes, and shall remain available until 

expended: Provided further, That the Fund may 

receive advances and reimbursements from 

funds available to the business units and 

offices of the Internal Revenue Service for 

which such centralized services are performed 

at rates which 

will return in full all expenses of operation: 

Provided further, That unobligated balances of 

expired amounts appropriated or otherwise 

made available for this or 

any succeeding fiscal year to the Internal 

Revenue Service may be transferred and 

merged into the Fund no later than the end of 

the fifth fiscal year after the last fiscal year for 

which such funds are available for the 

purposes for which appropriated: Provided 
IRS ‐ 40

further, That no funds may be transferred 

pursuant to the previous proviso unless 

advance notification is provided to the 

Committees on Appropriations of the House of 

Representatives and the Senate. 

(Department of the Treasury Appropriations 

Act, 2022.)
IRS ‐ 41

E – Legislative Proposals

Increase Oversight of Paid Tax Return Preparers 

The proposal would amend Title 31, U.S. Code (Money and Finance) to provide the 

Secretary with explicit authority to regulate all paid preparers of Federal tax returns, 

including by establishing mandatory minimum competency standards. 

The proposal would be effective on the date of enactment. 

Increase penalties on ghost preparers 

The proposal would increase the penalty amount to the greater of $500 per return or 

100 percent of the income derived per return by a ghost preparer. The proposal would 

also increase the limitations period during which the penalty may be assessed from 

three years to six years. 

The proposal would be effective for returns required to be filed after December 31, 

2021. 

Introduce Comprehensive Financial Account Information Reporting to Improve 

Tax Compliance 

This proposal would create a comprehensive financial account information reporting 

regime. Financial institutions would report data on financial accounts in an information 

return. The annual return will report gross inflows and outflows with a breakdown for 

physical cash, transactions with a foreign account, and transfers to and from another 

account with the same owner. This requirement would apply to all business and 

personal accounts from financial institutions, including bank, loan, and investment 

accounts1

, with the exception of accounts below a low de minimis gross flow threshold 

of $600 or fair market value of $600. 

Other accounts with characteristics similar to financial institution accounts will be 

covered under this information reporting regime. In particular, payment settlement 

entities would collect Taxpayer Identification Numbers (TINs) and file a revised Form 

1099-K expanded to all payee accounts (subject to the same de minimis threshold), 

reporting not only gross receipts but also gross purchases, physical cash, as well as 

payments to and from foreign accounts, and transfer inflows and outflows. 

1

Current income reporting by financial institutions would be expanded to all entities, including certain corporations. Interest 

payments would be included in the loan account reporting. Transferee information would be reported for all real estate transactions 

on Form 1099-S. 
IRS ‐ 42

Similar reporting requirements would apply to crypto asset exchanges and custodians. 

Separately, reporting requirements would apply in cases in which taxpayers buy crypto 

assets from one broker and then transfer the crypto assets to another broker, and 

businesses that receive crypto assets in transactions with a fair market value of more 

than $10,000 would have to report such transactions. 

The Secretary would be given broad authority to issue regulations necessary to 

implement this proposal. 

The proposal would be effective for tax years beginning after December 31, 2022. 

Enhance Accuracy of Tax Information 

Expand the Secretaryʼs authority to require electronic filing for forms and returns 

Electronic filing would be required for returns filed by taxpayers reporting larger 

amounts or that are complex business entities, including: (1) income tax returns of 

individuals with gross income of $400,000 or more; (2) income, estate, or gift tax returns 

of all related individuals, estates, and trusts with assets or gross income of $400,000 or 

more in any of the three preceding years; (3) partnership returns for partnerships with 

assets or any item of income of more than $10 million in any of the three preceding 

years; (4) partnership returns for partnerships with more than 10 partners; (5) returns of 

REITs, REMICs, RICs, and all insurance companies; and (6) corporate returns for 

corporations with $10 million or more in assets or more than 10 shareholders. Further, 

electronic filing would be required for the following forms: (1) Forms 8918, “Material 

Advisor Disclosure Statement”; (2) Forms 8886, “Reportable Transaction Disclosure 

Statement”; (3) Forms 1042, “Annual Withholding Tax Return for U.S. Source Income of 

Foreign Persons”; (4) Forms 8038-CP, “Return for Credit Payments to Issuers of Qualified 

Bonds”; and (5) Forms 8300, “Report of Cash Payments Over $10,000 Received in a Trade 

or Business.” 

Return preparers that expect to prepare more than 10 corporation income tax returns or 

partnership returns would be required to file such returns electronically. 

The Secretary would also be authorized to determine which additional returns, 

statements, and other documents must be filed in electronic form in order to ensure the 

efficient administration of the internal revenue laws without regard to the number of 

returns that a person files during a year. 

Improve information reporting for reportable payments subject to backup withholding 

The proposal would also treat all information returns subject to backup withholding 

similarly. Specifically, the IRS would be permitted to require payees of any reportable 
IRS ‐ 43

payments to furnish their TINs to payors under penalty of perjury. The proposal would 

be effective for payments made after December 31, 2021. 

Implement A Program Integrity Allocation Adjustment and Provide Additional 

Funding for Tax Administration 

The Administration proposes a multi-year adjustment to the discretionary spending 

allocation for the IRS Enforcement and Operations Support accounts. The total 

adjustment would be $6.7 billion over the budget window. The proposed allocation 

adjustment for 2022 would fund $417 million in enforcement and compliance initiatives 

and investments above current levels of activity. The adjustment would cover inflation 

and the cost to sustain the new initiatives and investments through 2031. 

In addition, the Administration proposes to provide the IRS $72.5 billion in mandatory 

funding over the budget window. A portion of these proposed IRS resources would fund 

improvements and expansions in enforcement and compliance activities. The proposed 

mandatory funding would also provide the IRS with resources to enhance its 

information technology capability, including implementation of the proposed financial 

information reporting regime, and to strengthen taxpayer service. 

The proposal would direct that additional resources go toward enforcement against 

those with the highest incomes, rather than Americans with actual income of less than 

$400,000.

Details about these IRS funding programs are provided elsewhere in the Budget. 

IRS Centralized Services Fund / Working Capital Fund 

The Budget includes appropriations language to establish a working capital fund for IRS 

centralized services. The fund will allow the IRS to achieve cost savings, promote 

economies of scale, establish more consistent processes and policies, and improve how 

it delivers facility services, technology, and other centralized services for its business 

units. For FY 2022, the fund proposes to start with several pilot projects that would test 

use of the fund, including potentially IT development and operations projects, facilities 

projects, and/or postage funding 
IRS ‐ 44

F – Evidence Building Activity 

The Foundations for Evidence-Based Policymaking Act requires agencies to assess their 

ability and infrastructure to carry out evidence-building activities. This capacity 

assessment will be published in conjunction with the FY 22-26 Strategic Plan. The law 

also requires agencies to monitor and use the results of these activities. 

In addition to the projects listed below, IRS is also working with the Department of 

Treasury and OMB on several evaluation projects related to Executive Order 13985, “On 

Advancing Racial Equity and Support for Underserved Communities Through the Federal 

Government

Type of Evidence 

Building Activity 

Major Activities and Planned 

Projects 

Resource Types Use 

Evaluation 

Collection and analysis 

of data to assess 

effectiveness and 

efficiency of programs, 

policies, or procedures 

Estimated share of 

all EvidenceBuilding Activities:

 20 % 

Major activities: 

 Notice Redesign Using 

Behavioral Insights (A) 

 Customer Callback Initiative 

(A) 

Occupational Series: 

Management and Program 

Analysis 

Information Technology 

Management 

Miscellaneous Administration 

and Program 

Operations Research 

Economist 

Program Manager 

Mathematical Statistics 

Computer Science 

Statistics 

Social Science 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic management 

 processes 

☐ By external partners 

 (government) 

☐ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Marginal Revenue/Cost 

Case Selection (A) 

 Measuring the Impact of 

Proactive Outreach and 

Education (P) 

 Online Accounts usability 

testing (A) 

 Employee misclassification 

modeling (A) 

 Issue Recommender for 

Examination Program 

Enhancement (A) 

 Evaluating Equity and 

Fairness in IRS workload 

section models (P) 

Research 

Modeling or other 

systematic use of data 

to explore emerging 

issues or potential 

scenarios to generate 

new knowledge 

Estimated share of 

all EvidenceBuilding Activities: 

Major activities: 

 Taxpayer Experience 

Strategy Initiative (A) 

 Network Approaches for 

Emerging and Undetected 

Identify Theft Selections (A) 

 Small Business/Self 

Employed Emerging Issues 

(A) 

 Tax Gap research initiatives 

(A) 

 Measuring Indirect Effects of 

enforcement activities (A) 

Occupational Series: 

Management and Program 

Analysis 

Information Technology 

Management 

Miscellaneous Administration 

and Program 

Operations Research 

Economist 

Program Manager 

Mathematical Statistics 

Computer Science 

Statistics 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic management 

 processes 

☒ By external partners 

 (government) 

☐ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 
IRS ‐ 45

Type of Evidence 

Building Activity 

Major Activities and Planned 

Projects 

Resource Types Use 

 35 % FY21 and FY22 projects: 

 Promoting Productivity in 

Nonfiler Programs (A) 

 Exam Planning Scenario 

Tool (A) 

Social Science 

 Analysis 

Routine and frequent 

use of data that 

produces insights for 

decision making and 

program management 

 25 % 

Major activities: 

 Performance Measurement 

(A) 

 Employment Tax 

noncompliance study (A) 

Occupational Series: 

Management and Program 

Analysis 

Information Technology 

Management 

Miscellaneous Administration 

and Program 

Operations Research 

Economist 

Program Manager 

Mathematical Statistics 

Computer Science 

Statistics 

Social Science 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic management 

 processes 

☒ By external partners 

 (government) 

☒ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Power of Attorney fraud 

analysis (A) 

 Graphic Database 

Visualization studies (A) 

Statistics 

Collection, 

compilation, and 

processing of data for 

describing or 

estimating 

characteristics or 

insights concerning 

groups 

Estimated share of 

all EvidenceBuilding Activities: 

 20 % 

Major activities: 

 Statistical Research Program 

(A) 

 SOI Statistics on Individual, 

tax-exempt organizations, 

and government bonds (A) 

 SOI Statistics on 

Corporation, small business, 

and Farms (A) 

Occupational Series: 

Management and Program 

Analysis 

Information Technology 

Management 

Miscellaneous Administration 

and Program 

Operations Research 

Economist 

Program Manager 

Mathematical Statistics 

Computer Science 

Statistics 

Social Science 

☒ For internal policy 

 decision-making 

☐ During internal 

 strategic management 

 processes 

☒ By external partners 

 (government) 

☒ By external partners 

 (non-government) 

☒ By unaffiliated 

 external researchers 

FY21 and FY22 projects: ☐ Other (describe) 

• None 
IRS ‐ 46

Section II – Budget and Performance Plan 

A – Strategic Alignment 

IRS FY 2018-2022 Strategic Goals 

The Internal Revenue Service (IRS) FY 2018 – 2022 Strategic Plan articulates the IRS 

vision for accomplishing our mission and will guide the IRSʼs strategic decision-making. 

The plan includes six strategic goals organized around three foundational areas: 

Mission, People, and Foundation. 

Mission: 

• Empower and enable all taxpayers to meet their tax obligations. 

• Protect the integrity of the tax system by encouraging compliance through 

administering and enforcing the tax code. 

People: 

• Collaborate with external partners proactively to improve tax 

administration. 

• Cultivate a well-equipped, diverse, flexible, and engaged workforce. 

Foundation: 

• Advance data access, usability, and analytics to inform decision making 

and improve operational outcomes. 

• Drive increased agility, efficiency, effectiveness, and security in IRS 

operations. 

Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 
IRS ‐ 47

– 2026 Departmental Strategic Plan for publication in 2022. The Annual Performance 

Plan will be updated in the FY 2023 Presidentʼs Budget to reflect new departmental 

strategic goals and objectives. The IRS will publish a component plan that aligns bureau 

activities and priorities to the Departmentʼs by the spring of 2022. 

FY 2021 and FY 2022 Initiatives: 

The FY 2021 and FY 2022 initiatives contribute to three IRS strategic focus areas: Putting 

Taxpayers First, Modernizing the IRS, and Improving Compliance, as well as all six IRS 

strategic goals. The FY 2021 and FY 2022 initiatives build on each other and seek to 

transform IRS operations to improve taxpayer and employee experience and provide 

digital tools to increase voluntary compliance. Also, Modernization and improved 

Customer Experience remain top priorities and key drivers of transformation for the IRS. 

The table on the next page summarizes key FY 2021 and FY 2022 initiatives under their 

relevant strategic focus area. 

Putting Taxpayers First Modernizing the IRS Improving Compliance 

Taxpayer First Act (FY 2021/FY 2022) 

 FY21: Planning for the 

implementation of TFA provisions 

and developing the Taxpayer 

Experience Strategy, the 

comprehensive training strategy, and 

the organizational re-design plan. 

 FY22: Implementing the Taxpayer 

Experience Strategy, and other key 

provisions. 

 FY22: The IRS will consolidate exam 

operations and processes that 

currently span across multiple 

business units. This consolidated 

exam office will be responsible for all 

examination processes across all 

taxpayer segments but would 

maintain some degree of 

specialization to address unique 

taxpayer needs and emerging highrisk compliance areas. The 

consolidated exam office will bring 

together resources and expertise 

needed to address the more 

complex tax returns, including Global 

High Wealth individuals, large and 

multi-national corporations and, 

partnerships. 

Improve Live Assistance (FY22) 

 Improving the Telephone Level of 

Service (LOS) to 75%, reducing 

correspondence inventory, and 

optimizing staffing at Taxpayer 

Assistance Centers (TAC). 

IRS Integrated Business Modernization 

Plan (FY21/22)

 Continuing progress on the overall 

Modernization Plan, and specifically 

making digital communication 

improvements to transform the 

taxpayer experience and support the 

IRS Taxpayer Experience Strategy 

implementation. 

Reducing the Tax Gap (FY21/22)

 Providing robust civil and criminal 

enforcement to protect against those 

who pursue overly aggressive tax 

positions, while ensuring honest 

taxpayers have access to the services 

they need. 

Program Integrity Allocation 

Adjustment (FY21/22)

 Expanding and improving the 

effectiveness and efficiency of the 

IRS’s tax enforcement program. 

Ensure Fairness of the Tax System 

(FY22) 

 Expanding enforcement efforts to 

cover large corporations, global high 

wealth, cyber-crime, and tax-exempt 

areas.
IRS ‐ 48

Collaboration with Other Agencies: 

• Providing Pandemic Relief to Taxpayers 

o The IRS cooperates with the Bureau of Fiscal Service (BFS), Social Security 

Administration, and the Department of Veterans Affairs to share data in 

order to quickly and efficiently send Economic Impact Payments (EIP) to 

taxpayers, and reduce the burden/ barriers in some taxpayers being able 

to receive the payments. 

• IRS also works closely with BFS on strategies to achieve the FY 21-22 goals. 

• Evidence Act 

o IRS collaborates with Tobacco Tax and Trade Bureau (TTB) on Treasuryʼs 

Learning Agenda 

o IRS Research Director serves as the Chief Statistical Officer on Treasuryʼs 

Chief Data Council 

o IRS Research provides data support and analysis for Treasuryʼs Office of 

Tax Policy 
IRS ‐ 49

Taxpayer Services 

Appropriation Description 

The Taxpayer Services appropriation provides funding for taxpayer service activities and 

programs. This includes printing forms and publications, processing tax returns and 

related documents, offering filing and account services, taxpayer assistance, and 

providing taxpayer advocacy services. 

The Taxpayer Services budget request for FY 2022 is $2,940,876,000 in direct 

appropriations and 29,838 FTE, excluding the proposed program integrity allocation 

adjustment. This amount is an increase of $353,270,000, or 13.65 percent, and an 

increase of 3,849 FTE, or 14.81 percent from the FY 2021 Operating Plan level (posttransfer) of $2,587,606,000 and 25,989 FTE. 

2.1 – Budget Adjustment Table 

Dollars in thousands

Taxpayer Services

Summary of Proposed FY 2021 Request FTE Amount

FY 2021 Operating Plan 25,989 $2,587,606

Changes to Base:

Maintaining Current Levels (MCLs) $75,138

Pay Annualization (1.0% average pay raise) 5,930

Pay Raise (2.7% average pay raise) 48,152

Non-Pay 4,138

FERS Contribution Increase 16,918

Efficiencies/Savings: (409) ($5,494)

Increase e-File Savings (101) (5,494)

Personnel Savings (308)

Subtotal FY 2022 Changes to Base (409) $69,644

FY 2022 Current Services 25,580 $2,657,250

Program Changes:

Program Increases

Putting Taxpayers First 55 35,459

User Authentication 27,000

Taxpayer Experience Strategy 55 8,459

Improve Live Assistance 4,203 248,167

Subtotal FY 2022 Program Increases 4,258 $283,626

Total FY 2022 Budget Request 29,838 $2,940,876

See footnotes in 1.1 -- Appropriations Detail Table
IRS ‐ 50

2.2 – Object Classification Obligations 

Dollars in thousands

Taxpayer Services

Object Classification

FY 2020

Operating Plan

FY 2021

Operating Plan

FY 2022

Request

11.1 Full-Time Permanent Positions 1,562,252 1,599,165 1,808,921

11.3 Other than Full-Time Permanent Positions 46,130 53,855 55,591

11.5 Other Personnel Compensation 72,365 122,409 132,558

11.8 Special Personal Services Payments

11.9 Personnel Compensation (Total) 1,680,747 1,775,429 1,997,070

12.1 Personnel Benefits 628,759 576,632 667,191

13.0 Benefits to Former Personnel 27,645 19,887 20,340

Total Personnel and Compensation Benefits $2,337,151 $2,371,948 $2,684,601

21.0 Travel 12,649 5,162 9,710

22.0 Transportation of Things 697 671 685

23.1 Rental Payments to GSA 1

23.3 Communications, Utilities, & Misc 1,347 1,289 1,318

24.0 Printing & Reproduction 9,624 9,791 10,026

25.1 Advisory & Assistance Services 41,007 45,729 74,006

25.2 Other Services 21,773 25,190 25,729

25.3 Purchase of Goods & Services from Govt. Accounts 58,228 68,677 74,064

25.7 Operation & Maintenance of Equipment 249 51 56

26.0 Supplies and Materials 4,135 4,209 4,817

31.0 Equipment 244 400 406

41.0 Grants, Subsidies 48,000 54,000 54,960

42.0 Insurance Claims & Indemnities 449 489 498

Total Non-Personnel $198,403 $215,658 $256,275

New Appropriated Resources $2,535,554 $2,587,606 $2,940,876

Budget Activities:

Pre-filing Taxpayer Assistance & Education 647,066 657,618 713,346

Filing & Account Services 1,888,488 1,929,988 2,227,530

New Appropriated Resources $2,535,554 $2,587,606 $2,940,876

FTE 26,816 25,989 29,838

See footnotes in 1.1 -- Appropriations Detail Table

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 million 

Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.
IRS ‐ 51

2.3 – Appropriation Detail Table 

2A – Pre-Filing Taxpayer Assistance and Education ($713,346,000 in direct 

appropriations and an estimated $1,557,000 in reimbursable programs): This budget 

activity funds direct labor and some non-labor expenses to assist with tax return 

preparation, including tax law interpretation, publication, production, and advocate 

services. The program activities include: 

• Pre-Filing Services Management supports headquarters staffing and support for 

Taxpayer Advocate Service and Customer Assistance Relationship and Education 

(CARE) program activities. CARE provides pre-filing taxpayer assistance and 

education. 

• Taxpayer Communication and Education researches customer needs; develops 

and manages educational programs; establishes partnerships with stakeholder 

groups; and disseminates tax information to taxpayers and the public through a 

variety of media, including publications and mailings, websites, broadcasting, and 

advertising. 

• Media and Publications develops and produces notices, forms, and publications 

for printed and electronic tax materials, and provides media production services 

to taxpayers. 

Dollars in thousands

Taxpayer Services

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Pre-Filing Taxpayer Assistance and Education 4,524 647,066 4,514 657,618 4,777 713,346 (263) 55,728 5.83% 8.47%

Filing and Account Services 22,236 1,888,488 21,475 1,929,988 25,061 2,227,530 (3,586) 297,542 16.70% 15.42%

Subtotal New Appropriated Resources 26,760 $2,535,554 25,989 $2,587,606 29,838 $2,940,876 (3,849) $353,270 14.81% 13.65%

Other Resources:

Reimbursables 660 73,347 674 67,501 696 71,214 22 3,713 3.26% 5.50%

Offsetting Collections - Non Reimbursables

User Fees 1,521 99,900 71 3,900 (1,450) (96,000) -95.33% -96.10%

Recovery from Prior Years 11 59 59

Unobligated Balances from Prior Years 4,737 1,142 (1,142) -100.00%

Transfers In/Out

Recoveries Paid 3 3

Resources from Other Accounts

Subtotal Other Resources 660 $78,095 2,195 $168,605 767 $75,176 (1,428) ($93,429) -65.06% -55.41%

Total Budgetary Resources 27,420 $2,613,649 28,184 $2,756,211 30,605 $3,016,052 (5,277) $259,841 8.59% 9.43%

See footnotes in 1.1--Appropriations Detail Table

Change % Change

FY 2020

Operating Plan

FY 2021

Operating Plan

FY 2022

Request

FY 2021 to FY 2022 

Request

FY 2021 to FY 2022 

Request

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million under the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American 

Rescue Plan (ARP) (P.L. 117-2), the $417 million Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.
IRS ‐ 52

• Taxpayer Advocacy provides advocate services to taxpayers by identifying the 

underlying causes of taxpayer problems and participating in the development of 

systematic and/or procedural remedies. 

• Account Management and Assistance – Field Assistance provides face-to-face 

assistance, education, and compliance services to taxpayers. It includes return 

preparation, answering tax questions, resolving account and notice inquiries, and 

supplying forms and publications to taxpayers. 

• Taxpayer Advocate Case Processing provides advocate services to taxpayers to 

resolve taxpayer problems through prompt identification, referral, and 

settlement. 

• Wage and Investment (W&I) HQ Management and Administration provides 

staffing, training, and direct support for W&I management activities of strategic 

planning, communications and liaison, finance, human resources, equity, diversity 

and inclusion, business modernization, and embedded training. 

• Taxpayer Services Research provides resources to support taxpayer services by 

conducting taxpayer behavioral studies, data analysis, and uses advanced 

analytics to deliver results and conclusions to inform business decisions to 

improve IRS products and services. 

• National Distribution Center processes orders for IRS forms and publications 

received from individual taxpayers, tax practitioners, and IRS tax return 

preparation partners. 

Description of FY 2020 Performance – Pre-Filing and Taxpayer Assistance

In FY 2020, the Timeliness of Critical Individual Filing Season (CIFS) Tax Products to the 

Public (i.e., tax forms, schedules, instructions, and publications) was 78.4 percent (69 out 

of 88 products delivered timely), falling short of the FY 2020 target of 89 percent by 12 

percent. The December 20, 2019 enactment of Public Law 116-94 did not allow enough 

time to incorporate the new laws into the tax products by the measure date of January 

20, 2020. The legislation effected over 160 tax products; 34 (40 percent) of these were 

CIFS, many of which had already been released to the public. Despite prioritization, 

workload planning, and the use of overtime, compensatory hours, and credit hours by 

IRS employees on weekdays, weekends, and holidays, the results fell just short of the 

annual target. The IRS expects to achieve a target of 85 percent for FY 2021 and 89 

percent for FY 2022. 

In FY 2020, the IRS Timeliness of Critical Tax TE/GE and Business (CTB) Filing Season Tax 

products to the Public was 96 percent, exceeding the target of 89 percent. These results 
IRS ‐ 53

were achieved through the prioritization of critical products to ensure those products 

were available by the start of filing season, exceptional workload planning and 

monitoring by management and the extraordinary efforts of our employees, and 

overtime, credit, and compensatory time during workdays and weekends. Public Law 

116-94, enacted on December 20, 2019, had less of an impact on CTB tax products. 

While the legislation impacted over 160 tax products, only 12 of these were CTB. The IRS 

expects to achieve a target of 85 percent for FY 2021 and 89 percent for FY 2022. 

The FY 2020 Enterprise Self-Assistance 

Participation Rate (ESAPR) was 90.6 

percent, exceeding the FY 2020 target by 

10.5 percent and the FY 2019 result by 6 

percent. The web services that had the 

highest increases were Interactive Tax 

Assistant (128 percent), Whereʼs My 

Refund (37.1 percent), and Get Transcript 

Online (74.6 percent). Compared to 

FY 2019, total services increased by 

26.8 percent, self-assisted services 

increased by 34.5 percent and assisted 

services fell 18.5 percent due, in part, to 

the Coronavirus (COVID-19) pandemic as 

the IRS had several employee-assisted services either shutdown or reduced. Beginning 

in FY 2020, five new components were added to the methodology: Web applications 

ID-Verify, IP PIN, Online Account Sessions, Tax Withholding Estimator, and Employee 

Services Taxpayer Protection Program (TPP) calls. The ESAPR FY 2021 and FY 2022 target 

is set at 89 percent.

106.6 86.9

624.7

85.4%

840.4

90.6%

0

200

400

600

800

1000

FY 2019 FY 2020

Enterprise Self‐Assistance Participation Rate

(in Millions)

Assisted Services Self‐Assisted Services
IRS ‐ 54

FY 2022 Changes by Budget Activity 

2.1.1 – Budget and Performance Report and Plan

Dollars in thousands

Pre-Filing Taxpayer Assistance & Education FTE Amount

FY 2021 Operating Plan 4,515 $657,618

Changes to Base:

Maintaining Current Levels (MCLs) $19,453

Pay Annualization (1.0% average pay raise) 1,415

Pay Raise (2.7% average pay raise) 11,491

Non-Pay 1,785

FERS Contribution Increase 4,762

Efficiencies/Savings $8,492

Increase e-File Savings

Personnel Savings 8,492

Subtotal FY 2022 Changes to Base $27,945

FY 2022 Current Services 4,515 $685,563

Program Increases:

Putting Taxpayers First 13 1,498

Taxpayer Experience Strategy 13 1,498

Improve Live Assistance 350 26,285

Subtotal FY 2022 Program Increases 363 $27,783

Total FY 2022 Request 4,878 $713,346

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan 363 $55,728

Percent Change FY 2022 Request over FY 2021 Operating Plan 8.04% 8.47%

Dollars in thousands

Pre-Filing Taxpayer Assistance & Education FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request

Appropriated Resources1 $609,445 $594,962 $640,379 $621,907 $632,893 $657,618 $713,346

Reimbursable Resources2 13 4 260 118 578 1,476 1,557

User Fees2

Budget Activity Total $609,458 $594,966 $640,639 $622,025 $633,471 $659,094 $714,903

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.

Pre-Filing Taxpayer Assistance & Education FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Measure Actual Actual Actual Actual Actual Target Target Target

Timeliness of Critical Filing Season Tax Products to the Public 

(Ot)1 92.5% 93.1% 59.6% 92.6% 78.4% 89.0% 85.0% 89.0%

Timeliness of Critical TE/GE & Business Tax Products to the 

Public (Ot)1 98.0% 96.7% 100.0% 96.1% 96.0% 89.0% 85.0% 89.0%

Enterprise Self Assistance Participation Rate (E) (L)2 89.0% 79.0% 82.0% 85.4% 90.6% 82.0% 89.0% 89.0%

1

Modified for FY 2019

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Strategic Goal Measure

2 Starting in FY 2017, the IRS modified the Taxpayer Self Assistance Rate measure (renamed to Enterprise Self Assistance Participation Rate) to include additional selfservice channels including Get Transcript and payment applications such as Direct Pay and Online Payment Agreements. As new self-assistance applications are 

provided to the public, they will be added to the methodology.
IRS ‐ 55

2B – Filing and Account Services

($2,227,530,000 in direct appropriations, $69,657,000 from reimbursable programs, and 

$3,900,000 from user fees): This budget activity funds direct labor and non-labor 

expenses that provide filing and account services to taxpayers, process paper and 

electronically-submitted tax returns, issue refunds, and maintain taxpayer accounts. The 

public continues to file more returns electronically (more than 90 percent of individual 

returns were filed electronically during the 2018 filing season). The program activities 

include: 

• Filing and Account Services Management administers filing and account services 

programs. 

• Submission Processing processes paper and electronically submitted tax returns 

and supplemental documents, accounts for tax revenue, processes information 

documents, and issues refunds and tax notices. 

• Account Management and Assistance – Electronic/Correspondence Assistance 

provides education and assistance to taxpayers and resolves accounts and notice 

inquiries through telephone, paper, and internet correspondence. 

• Electronic Products and Services Support (EPSS) provides centralized operations 

and support capabilities for the IRS suite of electronic products, including e-help 

desk, technology support, and operations support. 

• Electronic Tax Administration (ETA) markets and administers electronic tax 

administration products and services. 

• Health Care Tax Administration provides funds to administer the health insurance 

tax credit portion of the Trade Adjustment Assistance Reform Act of 2002. 

• Joint Operations Center (JOC) provides service, support, and technology for 

telephone, correspondence, and electronic media inquiries; real time monitoring 

and routing of inbound calls; monitoring of Customer Service Representative 

(CSR) accuracy; and management of the enterprise telephone database. 
IRS ‐ 56

Description of FY 2020 Performance – Filing and Account Services 

Millions of business taxpayers file their 

returns electronically. The IRS achieved a 67.4 

percent business e-file rate in FY 2020 

surpassing the target of 60 percent. The IRS 

processed 30.7 million business returns 

electronically—a five-year high and a 5.7 

percent increase from FY 2019. Employment 

tax returns (Form 941, Employerʼs Quarterly 

Federal Tax Return), continue to increase as a 

share of business returns filed from 

39 percent in FY 2016 to 41 percent in FY 

2020. The IRS will continue to promote the benefits of e-filing (i.e., faster refunds, 

greater accuracy, secure and confidential submission, and quick confirmation). Starting 

in FY 2021, the business e-file rate measure will be discontinued from budget reporting 

as it is reported elsewhere. 

In FY 2020, Customer Accuracy – Tax Law Phones was at 91 percent, 1.1 percent below 

the target of 92 percent. All Tax Law toll-free applications were inactive from April 1 

through June 12 due to the shutdown of toll-free sites at the beginning of the 

pandemic. When the Tax Law toll-free sites resumed operations on Monday, June 15, 

the inactivity due to the COVID-19 pandemic impacted the Enterprise quality. The IRS 

will continue to monitor results through data-driven analysis of reports obtained from 

the Embedded Quality Review System to ensure achievement of future goals. Ongoing 

efforts have and will continue to focus on production meetings with field sites, 

promoting coding consistency of product reviews, and providing training to managers 

and employees to ensure quality service to customers. For FY 2021 and FY 2022, the IRS 

set a Customer Accuracy – Tax Law Phones target of 90 percent. 

For Customer Accuracy – Accounts (Phones), the IRS answered 93.5 percent of account 

questions over the telephone correctly, 0.5 percent below the FY 2020 target of 94 

percent. The IRS closed all toll-free lines on March 31 to stop the spread of COVID-19 

and began opening with limited staffing in early May with services limited to the 

Taxpayer Protection Program lines only. Other lines resumed operations throughout 

May and June. Taxpayer Assistance Centers was the last product line to reopen on June 

26. The IRS continues to monitor Account Telephone Customer Accuracy results through 

data-driven analysis of reports obtained from Embedded Quality Review System to 

achieve future goals. To ensure quality service to customers, IRS is conducting 

production meetings with field sites, promoting coding consistency of product reviews, 

50.0% 52.9% 55.6% 57.8%

67.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Business E‐File Rate
IRS ‐ 57

and providing training to managers and employees. For FY 2021 and FY 2022, the IRS 

set an accounts accuracy target of 91 percent. 

Customer Service Representative 

(CSR) Level of Service (LOS) 

measures the relative success rate 

of taxpayers wanting to speak with 

a CSR. CSR LOS includes telephone 

lines answered by Accounts 

Management Customer Service 

Representatives. These telephone 

phone lines service 78 percent of 

all telephone traffic. In FY 2020, the 

CSR LOS was 53.1 percent, which is 

lower than the target of 60.0 

percent. This was primarily due to 

actions taken in response to the COVID-19 pandemic and the additional phone calls and 

correspondence inventory generated by EIP, changes to the filing season deadline, and 

other tax-law changes that were implemented to help individuals and businesses during 

the pandemic. Starting March 16, IRS implemented COVID-19 pandemic safety 

measures by closing call sites incrementally. On March 31, IRS closed all sites and tollfree lines. Throughout May and June, IRS took a phased approach to reopen Accounts 

Management phone lines as it increased telework capacity for more employees. 

Taxpayer Assistance Center lines reopened June 26. IRS also extended the filing season 

deadline to July 15. Due to the impact the pandemic had on the workforce and the 

resulting changes in IRS operating procedures to protect the workforce, the increased 

work due to a second and third rounds of EIPs in December and March 2021, and a 

dramatic increase in call volume as taxpayers sought information on EIPs and other tax 

changes, the IRS will lower its FY 2021 LOS target for CSR LOS to 32 percent. At a 

32 percent LOS, the IRS can maintain a manageable correspondence inventory level of 

approximately 1.4 million, which will help prevent additional demand and/or duplicate 

correspondence from taxpayers waiting for resolution. The FY 2022 target is set at 

75 percent. 

The IRS’ Enterprise level of service (LOS) metric measures the relative success rate of

taxpayers calling to speak with an IRS Assistor on any public facing toll‐free line.

Part of the Enterprise LOS are the phone lines used to calculate the CSR LOS.

Additionally, the Automated Collection System (ACS) line for compliance related

inquiries, is part of the Enterprise LOS but not part of the CSR LOS. For FY 2020

Enterprise LOS was 51.2 percent,  CSR LOS was 53.2 percent, and the ACS LOS was

39.8 percent. Due to COVID‐19 evacuation orders, most toll‐free phone operations

were closed in mid‐March 2020 and began a phased reopening in May 2020.  

53.4%

77.1%

75.9%

65.4%

53.1%

30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

CSR LOS
IRS ‐ 58

The Taxpayers Satisfied with the IRS 

indicator – the All Individual Tax Filers 

Score, is based on the annual American 

Customer Satisfaction Index (ACSI) 

Survey, which is the only uniform, 

cross-industry/government measure of 

customer satisfaction with the quality of 

goods and services available to U.S. 

residents. The measure is calculated as 

a weighted combination of the ACSI 

Individual Electronic Tax Filer and 

Individual Paper Tax Filer Customer 

Satisfaction Index scores based on a 100-point scale. The Taxpayers Satisfied with the 

IRS measure rebounded a point in 2020 to 74, due to a statistically significant increase in 

the electronic filer score. 

FY 2022 Changes by Budget Activity 

Dollars in thousands

Filing and Account Services FTE Amount

FY 2021 Operating Plan 21,474 $1,929,988

Changes to Base:

Maintaining Current Levels (MCLs) $55,686

Pay Annualization (1.0% average pay raise) 4,515

Pay Raise (2.7% average pay raise) 36,661

Non-Pay 2,354

FERS Contribution Increase 12,156

Efficiencies/Savings (409) ($13,986)

Personnel Savings (308) (8,492)

Subtotal FY 2022 Changes to Base (409) $41,700

FY 2022 Current Services 21,065 $1,971,688

Program Increases:

Putting Taxpayers First 42 33,960

User Authentication 27,000

Taxpayer Experience Strategy 42 6,960

Improve Live Assistance 3,853 221,882

Subtotal FY 2022 Program Increases 3,895 $255,842

Total FY 2022 Request 24,960 $2,227,530

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan 3,486 $297,542

Percent Change FY 2022 Request over FY 2021 Operating Plan 16.23% 15.42%

0

10

20

30

40

50

60

70

80

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Taxpayers Satisfied with the IRS
IRS ‐ 59

2.1.2 – Budget and Performance Report and Plan

Dollars in thousands

Filing and Account Services FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating Plan Request

Appropriated Resources1 $1,550,027 $1,564,488 $1,712,511 $1,872,175 $1,901,467 $1,929,988 $2,227,530

Reimbursable Resources2 28,555 30,147 34,905 62,794 72,769 66,025 69,657

User Fees2 160,342 40,553 69,987 3,900 99,900 3,900

Budget Activity Total $1,738,924 $1,635,188 $1,817,403 $1,938,869 $1,974,236 $2,095,913 $2,301,087

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.

Filing and Account Services FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Measures Actual Actual Actual Actual Actual Target Target Target

Percent of Business Returns Processed Electronically (Oe) 50.0% 52.9% 55.6% 57.8% 67.4% 60.0% Discontinued Discontinued

Customer Accuracy - Tax Law (Phones) (Ot) 96.4% 96.7% 95.5% 91.6% 91.0% 92.0% 90.0% 90.0%

Customer Accuracy - Accounts (Phones) (Ot) 96.1% 96.0% 96.1% 94.3% 93.5% 94.0% 91.0% 91.0%

Customer Service Representative Level of Service (Oe)1 53.4% 77.1% 75.9% 65.4% 53.1% 60.0% 32.0% 75.0%

Taxpayers Satisfied with the IRS (based on a 100 point scale)2 74 74 74 73 74 Indicator Indicator Indicator

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Long Term Goal

1

CSR LOS is computed based on Accounts Management telephone phone lines only. These telephone phone lines service 78% of all telephone traffic. The FY20 Enterprise LOS is 51.2%. 

The Enterprise LOS measures the relative success rate of taxpayers calling to speak with an IRS Assistor on any IRS toll-free line—not just those answered by Accounts Management 

CSRs. 

2

Based on the American Customer Satisfaction Index (ACSI) survey; the All Individual Tax Filer score is calculated from separate ACSI Individual Paper Filer and Electronic Filer customer 

satisfaction index scores; available on an annual basis at the end of January and computed on a 100-point scale. 
IRS ‐ 60

Enforcement 

Appropriation Description 

The Enforcement appropriation provides funding for the examination of tax returns, 

both domestic and international; administrative and judicial settlement of taxpayer 

appeals of examination findings; technical rulings; monitoring of employee pension 

plans; determination of qualifications of organizations seeking tax-exempt status; 

examination of tax returns of exempt organizations; enforcement of statues relating to 

detection and investigation of criminal violations of the internal revenue laws; 

identification of underreporting of tax obligations; securing of unfiled tax returns; and 

collection of unpaid accounts. 

The Enforcement budget request for FY 2022 is $5,462,823,000 in direct appropriations 

and 36,905 FTE, excluding the proposed program integrity allocation adjustment. This 

amount is an increase of $458,201,000, or 9.16 percent, and 1,916 FTE more than the FY 

2021 Operating Plan level (post-transfer) of $5,004,622,000 and 34,989 FTE. 
IRS ‐ 61

2.1 – Budget Adjustments Table 

Dollars in thousands

Enforcement

Summary of Proposed FY 2021 Request FTE Amount

FY 2021 Operating Plan 34,989 $5,004,622

Changes to Base:

Maintaining Current Levels (MCLs) $148,473

Pay Annualization (1.0% average pay raise) 11,650

Pay Raise (2.7% average pay raise) 94,603

Non-Pay 6,725

FERS Contribution Increase 35,495

Subtotal FY 2022 Changes to Base $148,473

FY 2022 Current Services 34,989 $5,153,095

Program Changes:

Program Increases

Putting Taxpayers First 96 36,294

Taxpayer Experience Strategy 96 36,294

Ensure Fairness of the Tax System 1,820 270,858

Electric Vehicles and Associated Infrastructure 2,576

Subtotal FY 2022 Program Increases 1,916 $309,728

Total FY 2022 Budget Request 36,905 $5,462,823

PIAA Program Increases

Increase Audit Coverage 1,028 109,317

Increase Collection Coverage 1,164 113,122

Expand Coverage in the Tax-Exempt Sector 244 29,952

Enhance Return Review Program 60 3,388

Enhance Enforcement Operations 23 31,673

Subtotal FY 2022 PIAA Program Increases 2,519 $287,452

Total FY 2022 Request Including PIAA 39,424 $5,750,275

See footnotes in 1.1 -- Appropriations Detail Table
IRS ‐ 62

2.2 – Object Classification Obligations 

Dollars in thousands

Enforcement

Object Classification

FY 2020

Operating Plan

FY 2021

Operating Plan

FY 2022

Request

11.1 Full-Time Permanent Positions 3,164,876 3,130,581 3,386,406

11.3 Other than Full-Time Permanent Positions 33,239 26,773 27,748

11.5 Other Personnel Compensation 116,058 145,294 154,439

11.8 Special Personal Services Payments 20,474 29,500 30,173

11.9 Personnel Compensation (Total) 3,334,647 3,332,148 3,598,766

12.1 Personnel Benefits 1,241,318 1,327,650 1,452,470

13.0 Benefits to Former Personnel 578 323 330

Total Personnel and Compensation Benefits $4,576,543 $4,660,121 $5,051,566

21.0 Travel 93,954 55,527 99,618

22.0 Transportation of Things 9,021 8,580 18,758

23.2 Rent Payments to Others 328 282 303

23.3 Communications, Utilities, & Misc 2,146 4,208 4,354

24.0 Printing & Reproduction 2,690 2,770 2,995

25.1 Advisory & Assistance Services 123,021 173,410 153,013

25.2 Other Services 50,531 34,826 50,054

25.3 Purchase of Goods & Services from Govt. Accounts 15,111 30,394 36,989

25.4 Operation & Maintenance of Facilities 4 5 5

25.6 Medical Care 8 125 125

25.7 Operation & Maintenance of Equipment 1,421 1,966 6,851

26.0 Supplies and Materials 18,234 20,830 23,141

31.0 Equipment 10,770 6,108 9,479

32.0 Land and Structures 1

42.0 Insurance Claims & Indemnities 1,217 970 989

91.0 Unvouchered 4,500 4,500 4,583

Total Non-Personnel $332,957 $344,501 $411,257

New Appropriated Resources $4,909,500 $5,004,622 $5,462,823

Budget Activities:

Investigations 648,819 698,193 773,605

Exam & Collections 4,081,409 4,120,886 4,497,709

Regulatory 179,272 185,543 191,509

New Appropriated Resources $4,909,500 $5,004,622 $5,462,823

FTE 35,448 34,989 36,905

See footnotes in 1.1 -- Appropriations Detail Table

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 million 

Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.
IRS ‐ 63

2.3 – Appropriation Detail Table 

2C – Investigations 

($773,605,000 in direct appropriations, and an estimated $42,615,000 from reimbursable 

programs): This budget activity funds the Criminal Investigation (CI) programs that 

explore potential criminal and civil violations of tax laws; enforce criminal statutes 

relating to violations of tax laws and other financial crimes; and recommend prosecution 

as warranted. The program activities include: 

• General Management and Administration supports the headquarters 

management activities of strategic planning, communications, finance, and 

human resources for CI activities. 

• Identity Theft, through CI's collaboration with internal and external business 

partners, combats the inherent risks of Stolen Identity Refund Fraud (SIRF) by 

focusing on significant tax investigations, prosecutions to maximize deterrence, 

and preventing the IRS from issuing fraudulent refunds. 

• CI supports the enforcement of criminal statutes relating to violations of internal 

revenue laws and other financial crimes. CI investigates cases of suspected intent 

to defraud involving both legal and illegal sources of income and recommends 

prosecution as warranted. This includes the investigation and prosecution of tax 

and money-laundering violations associated with narcotics organizations. 

• Criminal Tax Legal Support provides legal advice and support from IRS Counsel 

to CI. 

Dollars in thousands

Enforcement

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Investigations 2,971 648,819 3,012 698,193 3,175 773,605 163 75,412 5.41% 10.80%

Exam and Collections 31,467 4,081,409 30,987 4,120,886 32,736 4,497,709 1,749 376,823 5.64% 9.14%

Regulatory 950 179,272 990 185,543 994 191,509 4 5,966 0.40% 3.22%

Subtotal New Appropriated Resources 35,388 $4,909,500 34,989 $5,004,622 36,905 $5,462,823 1,916 $458,201 5.48% 9.16%

Other Resources:

Reimbursables 49 41,734 63 40,394 65 42,615 2 2,221 3.17% 5.50%

Offsetting Collections - Non Reimbursable 6,728 21,300 22,472 1,172 5.50%

User Fees 2,454

Recovery from Prior Years 4,962 1,114 1,114

Recoveries Paid 3,392 3,392

Unobligated Balances from Prior Years 329 69,806 200,055 200,256 201 0.10%

Transfers In/Out 137 140 140

Resources from Other Accounts 272 434 96,190 434 70,942 (25,248) -26.25%

Subtotal Other Resources 650 $125,821 497 $362,585 499 $340,931 2 ($21,654) 0.40% -5.97%

Total Budgetary Resources 36,038 $5,035,321 35,486 $5,367,207 37,404 $5,803,754 1,918 $436,547 5.40% 8.13%

See footnotes in 1.1--Appropriations Detail Table

FY 2021 to FY 2022 

Request

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million under the Coronavirus Aid, Relief, and Economic Security 

(CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 

million Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.

FY 2021 to FY 2022 

Request

FY 2020

Operating Plan

FY 2021

Operating Plan

FY 2022

Request

Change % Change
IRS ‐ 64

• International Investigations supports international investigations involving U.S. 

citizens residing abroad, non-resident aliens, expatriates (U.S. citizens living 

abroad who have renounced their citizenship), and investigations involving other 

international issues, including legal support (e.g., Foreign Tax Credit and Foreign 

Earned Income Exclusion, Corporations, Non-Profits, Pension Plans, etc.). 

• Cybersecurity supports CIʼs cyber-efforts around inherent risks to CIʼs networks 

and systems, while focusing enforcement and investigative actions on the 

criminals that pose those threats. This activity also supports security program 

management that protects the safeguarding of all data and systems within CI 

while adhering to all federal regulatory security compliance mandates and local 

security policies. 
IRS ‐ 65

Description of FY 2020 Performance – Investigations 

Criminal Investigation (CI) serves the American public by investigating potential criminal 

violations of the Internal Revenue Code and related financial crimes in a manner that 

fosters confidence in the tax system and compliance with the law. CI uses the following 

measures to evaluate its success in achieving its mission. 

In FY 2020, CI completed 2,624 criminal investigations, falling just short of the year-end 

target of 2,700, a 6.2 percent decrease compared to FY 2019. Cases related to legal 

source income, illegal source income, and narcotics source income completed through 

the fourth quarter decreased 4.1 

percent, 7.4 percent, and 8.0 percent, 

respectively, compared to the same 

period in FY 2019. Legal source cases 

include people that earn their 

income legally, but willfully violate 

the tax laws (tax evasion). Examples 

of illegal cases include 

embezzlement, mortgage fraud, 

telemarketing fraud, and money 

laundering. Narcotics cases are like 

illegal cases; however, these cases 

are specific to profits and financial 

gains of organized drug groups 

involved in narcotics, narcotics trafficking, and money laundering. Year-end performance 

for criminal investigations completed is currently projected at 2,600 for FY 2021 and FY 

2022. Year-end projections account for recent hires, attrition levels, impact of on-the-job 

instructors and current performance trends. They also account for setbacks and 

challenges presented because of the COVID-19 pandemic and its impact on future 

performance. In FY 2020, the pandemic impacted daily investigative activities and 

contributed to a higher cycle time for investigations completed. CI also focuses on 

traditional tax case programs which tend to have a higher cycle time. Despite these 

challenges, CI continues to use proven case development strategies, expand case 

development efforts, and leverage interagency partnerships to identify, initiate, and 

complete significant criminal investigations in all program areas. 

 ‐

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Criminal Investigations Completed

and Associated FTE

Criminal Investigations Completed

FTE for Criminal Investigations
IRS ‐ 66

The FY 2020 conviction rate 

of 90.4 percent was 1.7 

percent below the year-end 

target of 92 percent and 

reflects a 0.8 percentage 

point decrease compared 

to FY 2019. In response to 

the pandemic, courts 

closed temporarily 

throughout the country. As 

a result, fewer criminal 

cases were heard in court resulting in a lower number of convictions in FY 2020 denoted 

by the blue bars. Additionally, decreases in the number of special agents in previous 

years resulted in fewer cases initiated and consequently recommended for prosecution. 

Nonetheless, appropriate case selection and effective field performance continue to 

positively affect the quality of cases, resulting in a high conviction rate. CI's rate of 

conviction continues to be a strong indicator of investigative quality given that it is one 

the highest in federal law enforcement. CI will continue to coordinate with the 

Department of Justice (DOJ) Tax Division and U.S. Attorney Offices (USAO) regarding 

prosecutorial priorities and the appropriate development of investigations to maintain a 

high rate of conviction. The FY 2021 and FY 2022 targets for Conviction Rate will remain 

at 92 percent based on historical averages. Future performance depends on DOJ and 

USAO. CI does not prosecute its own cases. DOJ and USAO must accept cases for 

prosecution. DOJ and USAO may have to respond to other legislative and prosecutorial 

priorities and they cannot always prosecute CI cases. 

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

 ‐

500

1,000

1,500

2,000

2,500

3,000

3,500

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Convictions vs. Conviction Rate
IRS ‐ 67

FY 2022 Changes by Budget Activity 

2.1.3 – Budget and Performance Report and Plan 

Dollars in thousands

Investigations FTE Amount

FY 2021 Operating Plan 3,012 $698,193

Changes to Base:

Maintaining Current Levels (MCLs) $20,454

Pay Annualization (1.0% average pay raise) 1,492

Pay Raise (2.7% average pay raise) 12,113

Non-Pay 1,515

FERS Contribution Increase 5,334

Subtotal FY 2022 Changes to Base $20,454

FY 2022 Current Services 3,012 $718,647

Program Increases:

Putting Taxpayers First 2 $247

Taxpayer Experience Strategy 2 $247

Ensure Fairness of the Tax System 160 $52,135

Convert Vehicle Fleet to Electric $2,576

Subtotal FY 2022 Program Increases 162 $54,958

Total FY 2022 Request (Before PIAA) 3,174 $773,605

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan 162 $75,412

Percent Change FY 2022 Request over FY 2021 Operating Plan 5.38% 10.80%

Dollars in thousands

Investigations FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request

Appropriated Resources1 $591,449 $589,295 $581,680 $595,686 $619,227 $698,193 $773,605

Reimbursable Resources2 29,053 33,618 28,295 27,749 41,233 40,080 42,284

User Fees2

Budget Activity Total $620,502 $622,913 $609,975 $623,435 $660,460 $738,273 $815,889

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.

Investigations FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Measures Actual Actual Actual Actual Actual Target Target Target

Criminal Investigations Completed (Ot) 3,721 3,089 3,051 2,797 2,624 2,700 2,600 2,600

Conviction Rate (Oe) 92.1% 91.5% 91.7% 91.2% 90.4% 92.0% 92.0% 92.0%

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and interappropriation transfers.

Key: Oe - Outcome Measure, Ot - Output/Workload Measure
IRS ‐ 68

2D – Exam and Collections 

($4,497,709,000 in direct appropriations, and an estimated $28,000 from reimbursable 

programs): This budget activity funds programs that enforce the tax laws and increase 

compliance through examination and collection programs that ensure proper payment 

and tax reporting. This budget activity also includes campus support of the 

Questionable Refund program and appeals, and litigation activities associated with 

exam and collection. The program activities include: 

• Compliance Services Management supports management associated with exam 

and compliance program activities. 

• Payment Compliance – Correspondence Collection supports IRS collection 

activities by initiating contact and collecting delinquent taxpayer liabilities 

through written notices and other means. 

• Automated Collections and Support initiates contact and collects delinquent 

taxpayer liabilities through the centralized Automated Collection System (ACS). 

• Payment Compliance – Field Collection conducts field investigations and 

collection efforts associated with delinquent taxpayer and business entity 

liabilities, including direct taxpayer contact and outreach programs to protect the 

interest of the federal government in delinquent tax liability situations. 

• Tax Reporting Compliance – Document Matching supports the Automated 

Underreporter (AUR), Combined Annual Wage Reporting (CAWR), Federal 

Unemployment Tax Act (FUTA), and other document matching programs. 

• Tax Reporting Compliance – Electronic/Correspondence Exam initiates written 

correspondence with taxpayers related to tax issues arising from claims on their 

tax returns. 

• Tax Reporting Compliance – Field Exam compares taxpayer income levels and 

corresponding tax liabilities to ensure the accuracy of taxpayer returns. 

• Fraud/Bank Secrecy Act enforces the anti-money laundering provisions of the 

Bank Secrecy Act of 1970 (BSA) and the USA Patriot Act of 2001. It examines nonbank financial institutions for compliance with these laws, receives and processes 

more than 15 million financial reports annually, and manages a centralized 

database of that information for the Financial Crimes Enforcement Network. The 

Fraud program follows the money trail to support the criminal investigation of tax 

evasion operations. Fraud technical advisors and revenue agents supply 

investigative leads and referrals to federal, state, and local law enforcement 

agencies. 

• Appeals supplies an administrative review process that provides a channel for 

impartial case settlement before a case is docketed in a court of law. 
IRS ‐ 69

• Litigation provides legal support for the IRS in litigation of cases, including 

interpretation of the tax law. 

• Specialty Programs – Exams examines federal tax returns of businesses and 

individuals responsible for the filing and payment of employment, excise, estate, 

and gift taxes. 

• International Collection supports international field collection efforts associated 

with delinquent taxpayer and business entity liabilities from U.S. citizens residing 

abroad, non-resident aliens, expatriates (U.S. citizens living abroad who have 

renounced their citizenship), and those involving other international issues (e.g., 

Foreign Tax Credit and Foreign Earned Income Exclusion). 

• International Exams supports the international exam program involving U.S. 

citizens residing abroad, non-resident aliens, expatriates, and other examinations 

involving other international issues including legal support (e.g., Foreign Tax 

Credit and Foreign Earned Income Exclusion, Corporations, Non-Profits, Pension 

Plans, etc.). 

• Enforcement Research provides resources for market-based research to identify 

compliance issues, for conducting tests of treatments to address noncompliance, 

and for the implementation of successful treatments of taxpayer non-compliant 

behavior. 

• Unit General Management and Administration provides staffing, training, and 

direct support for headquarters management activities of strategic planning, 

communication and liaison, finance, human resources, equity, diversity and 

inclusion, business system planning, and embedded training. 

• EITC Management and Administration supports headquarters management 

associated with EITC. 

• Integrity & Verification Operations supports civil fraud detection and prevention 

efforts in a pre-refund environment including monitoring performance and 

developing policy, procedures, and guidance for processing civil revenue 

protection programs. 

• ID Theft Victim Assistance has end-to-end responsibility and accountability for 

identity theft victim assistance policy and operations, which includes paper 

inventories from tax-related ID theft, the Identity Theft Protection Specialized 

Unit, and Return Preparer Misconduct. 

• Whistleblower Office provides staffing, training, and direct support to process, 

assess, and analyze tips from individuals who identify tax problems during their 

daily business, regardless of where encountered (including workplace). 
IRS ‐ 70

• Communications and Liaison coordinates local government and liaison 

relationships; manages congressional, state, and national stakeholder 

relationships and issues; coordinates crosscutting issues, including audit 

management and legislative implementation; manages national media contacts 

and local media relationships; and ensures compliance with disclosure and 

privacy laws. 

• Return Integrity, Verification & Program Management provides policy and 

program oversight of revenue protection efforts such as detection, prevention, 

and treatment of improper refunds (identity theft and non-compliance), including 

managing systemic solutions regarding payment of valid refund claims and the 

development of innovative technology solutions supporting IRS-wide revenue 

protection strategies. 

Description of FY 2020 Performance – Exam 

The Examination program provides taxpayers top quality service by helping them 

understand and meet their tax responsibilities and by applying the tax law with integrity 

and fairness. The performance metrics IRS uses to gauge the Examination programʼs 

performance are discussed below. 

In FY 2020, Individual Exam Coverage was 0.29 percent which was below the target of 

0.48 percent. The effects of the 

pandemic shutdown drove 

closures 33 percent lower than 

FY 2019 while tax return filings 

continued to rise. From April 1 

through July 15, 2020, the IRSʼs 

People First Initiative provided 

taxpayers experiencing COVID19 related hardships relief from 

certain collection actions and 

processes. 

For FY 2021, the IRS is considering discontinuing the reporting of this measure for 

budget purposes and replacing it with a measure that allows IRS to highlight the 

strategic direction, including putting greater emphasis on large business, highincome/high-wealth taxpayers, and partnerships. 

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

0

5,000

10,000

15,000

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Individual Exam Closures with Coverage Rates

Exam Closures (hundreds) Exam Coverage Individual
IRS ‐ 71

Examination Coverage – Business (Assets > $10 million) measure is calculated by taking 

the total number of Large Business and International (LB&I) returns with assets of more 

than $10 million, including all partnerships examined and closed by LB&I during the 

current fiscal year, divided 

by total filings for the prior 

calendar year. In FY 2020, 

Business Examination 

Coverage was 1.3 percent, 

below the target of 1.7 

percent. Coverage for large 

business returns is below 

target as a result of several 

non-examination activities 

including: new hires in 

training and examiners 

conducting new hire training; examiners taking make-up Tax Cuts and Jobs Act of 2017 

(TCJA) training; hiring new and moving current managers to new training groups; and 

loss of productivity due to the COVID-19 working environment and the People First 

Initiative, which includes reduced contacts with taxpayers. 

For FY 2021, the IRS is considering discontinuing the reporting of this measure for 

budget purposes and replacing with a measure that allows IRS to highlight the strategic 

direction, including greater emphasis on large business, high-income / high-wealth 

taxpayers, and partnerships. 

In FY 2020, Exam Efficiency - Individual (the number of closures divided by the total 

Exam FTE) was 76, below the target of 115 and down 30 percent from FY 2019, primarily 

due to the pandemic. The IRS set a target of 111 in FY 2021 and a target of 117 in FY 

2022. IRS will monitor starts and inventory to meet its targets in the upcoming fiscal 

years. 

Automated Underreporter Coverage ended FY 2020 at 0.6 percent, below the target of 

1.7 percent, due to office closures because of COVID-19. When employees returned to 

the office, they prioritized screening since they did not have access to all 

correspondence due to backlogs in mailrooms. Early in the year, the number of closures 

decreased due to fewer cases being available because of the FY 2019 lapse in 

appropriations. Starting in FY 2021, this measure will be discontinued from budget 

reporting, as automated underreporter coverage is factored into two other indicators: 

Time to Resolve Compliance Issue After Filling and Time to Start Compliance Resolution. 

‐1.00%

1.00%

3.00%

5.00%

0

5,000

10,000

15,000

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Business Exam Closures with Coverage

Rates

Exam Closures Exam Coverage Business
IRS ‐ 72

The Time to Start Compliance Resolution is a new indicator for FY 2020 and is defined as 

the percentage of all individual income tax enforcement cases started within six months 

of the return posting date. It reflects the effect of expedited issue detection and more 

integrated enforcement approaches. 

It supports expedited document 

matching, enhanced anomaly detection 

leading to faster issue identification, and 

data and analytics to improve issue 

identification and treatment selection. For 

FY 2020, the percent of individual enforcement cases started within 6 months was 66.3 

percent compared to 60.9 percent for FY 2019. 

Time to Resolve Compliance Issue After Filing is a new indicator for FY 2020 and is 

defined as the median time it takes to 

close all individual income tax enforcement 

cases in days. This measure reflects the 

complete life cycle from return filing to 

resolution. It also reflects the effect of 

process enhancements, such as new selfcorrection capabilities, including Online 

Account. It supports expedited document 

matching and enhanced anomaly detection, which will lead to faster issue identification 

and resolution. For FY 2020, the overall Time to Resolve Compliance Issue After Filing 

was 491 days up from 469 days in FY 2019. 

Repeat Non-Compliance Rate is a new indicator for FY 2020 and is defined as the 

percentage of individual taxpayers 

with repeat non-compliance two 

years after the initial tax year for 

filing, payment, or reporting 

compliance. This measure supports 

expedited document matching, 

enhanced anomaly detection leading to faster issue identification, and Enterprise Case 

Management. It also promotes improved customer service through expanded access to 

new self-correction capabilities and improved behavioral analytics. It allows the IRS to 

better understand and change non-compliant taxpayer behavior. For FY 2020, the 

Repeat Non-Compliance Rate was 35.6 percent compared to 31.4 percent for FY 2019. 

Time to Start 2017 2018 2019 2020

Collection 86.2% 86.7% 80.1% 85.6% 

 Bal Due 90.1% 90.3% 90.5% 90.2% 

AUR 0.1% 0.1% 0.1% 0.1% 

Exam 40.9% 41.8% 39.3% 39.3% 

Total 58.8%60.1%60.9%66.3%

Time to Resolve 2017 2018 2019 2020

Collection: Bal due 

notice 379 368 330 400 

Collection: non-notice 650 755 373 345 

AUR 556 581 602 618 

Exam 507 502 551 597 

Total 491 494 469 491 

Repeat Non-Compliance 

Rate 2017 2018 2019 2020

Reporting 7.3% 7.4% 7.7% 8.1% 

Filing 39.1% 38.1% 39.8% 43.9% 

Payment 30.0% 30.5% 29.9% 28.6% 

Total 29.2% 30.0% 31.4% 35.6%
IRS ‐ 73

Description of FY 2020 Performance ‒ Collection 

The Collection program collects delinquent taxes, secures delinquent tax returns 

through the fair and equitable application of tax laws, and provides education to 

customers to promote future compliance. The performance goals that the IRS uses to 

gauge collection program performance are discussed below. 

The Collection Coverage measure is calculated by taking the total volume of collection 

work completed divided by total collection work available. Collection Coverage was 34.9 

percent, below the FY 2020 target of 39.7 percent because of a decrease in collection 

dispositions related to COVID-19 and a decrease in available inventory. Total new 

receipts were down 20 percent while available inventory decreased 11.7 percent. 

Collection coverage is expected to meet the FY 2021 and FY 2022 target of 33 percent 

based on the projected case closures calculated on the work and staffing plans. 

The Cost to Collect to $100 is 

computed as total operating 

costs divided by gross 

collection and then multiplied 

by 100. Total operating costs 

include dollars obligated, 

expended, and disbursed 

against appropriated funds, 

and excludes costs 

reimbursed by other federal 

agencies and private entities 

for services performed for 

these external parties. Gross 

collections are before refunds 

are issued and include 

penalties and interest in 

addition to taxes collected. For FY 2020, IRS total operating costs were approximately 

$12.3 billion while gross collections were approximately $3.45 trillion. The FY 2020 Cost 

to Collect $100 was 35 cents—24 percent below the 61-year average cost of 46 cents. 
IRS ‐ 74

FY 2022 Changes by Budget Activity 

2.1.4 – Budget and Performance Report and Plan

Dollars in thousands

Exam and Collections FTE Amount

FY 2021 Operating Plan 30,987 $4,120,886

Changes to Base:

Maintaining Current Levels (MCLs) $122,895

Pay Annualization (1.0% average pay raise) 9,764

Pay Raise (2.7% average pay raise) 79,287

Non-Pay 4,828

FERS Contribution Increase 29,016

Subtotal FY 2022 Changes to Base $122,895

FY 2022 Current Services 30,987 $4,243,781

Program Increases:

Putting Taxpayers First 94 $36,047

Taxpayer Experience Strategy 94 36,047

Ensure Fairness of the Tax System 1,656 217,881

Subtotal FY 2022 Program Increases 1,750 $253,928

Total FY 2022 Request (Before PIAA) 32,737 $4,497,709

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan 1,750 $376,823

Percent Change FY 2022 Request over FY 2021 Operating Plan 5.65% 9.14%

Dollars in thousands

Exam and Collections FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating Plan Request

Appropriated Resources1 $3,945,578 $3,901,041 $3,875,098 $3,907,290 $3,933,597 $4,120,886 $4,497,709

Reimbursable Resources2 456 450 3,289 240 249 27 28

User Fees2 36 42 2,454

Budget Activity Total $3,946,070 $3,901,491 $3,878,387 $3,907,572 $3,936,300 $4,120,913 $4,497,737

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.

Exam and Collections FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Measures Actual Actual Actual Actual Actual Target Target Target

Examination Coverage - Individual (Oe)1 0.7% 0.6% 0.6% 0.45% 0.29% 0.48% Discontinued Discontinued 

Examination Coverage - Business (Assets > $10 million) 

(Oe)1 3.0% 2.5% 2.2% 1.6% 1.3% 1.7% Discontinued Discontinued 

Examination Efficiency - Individual (E) 143 121 131 109 76 115 111 117

Automated Underreporter (AUR) Coverage (E)2 2.3% 2.2% 2.0% 1.3% 0.6% 1.7% Discontinued Discontinued 

Time to Start Compliance Resolution (E, L)3 58.8% 60.1% 60.9% 66.3% Indicator Indicator Indicator

Time to Resolve Compliance Issue After Filing (E)3 491 494 469 491 Indicator Indicator Indicator

Repeat Non-Compliance Rate (Ot)3 29.2% 30% 31.4% 35.6% Indicator Indicator Indicator

Collection Coverage - Units (Ot) 43.4% 42.2% 41.6% 41.3% 34.9% 39.7% 33.0% 33.0%

Cost to Collect $100 (E) $0.35 $0.34 $0.34 $0.33 $0.35 Indicator Indicator Indicator 

1

Requested discontinuing measure for FY 2021 budget reporting; new measures under development for FY 2021 2

Discontinued in FY 2020

3

New measure added for FY 20; historical data provided for comparative purposes.

Key: Oe - Outcome Measure, E - Efficiency Measure, L - Strategic Plan Goal, Ot - Output/Workload Measure
IRS ‐ 75

2E – Regulatory 

($191,509,000 in direct appropriations and an estimated $303,000 from reimbursable 

programs): This budget activity funds the development of published IRS guidance 

materials; interpretation of tax laws; internal advice to IRS on general non-tax legal 

issues; enforcement of regulatory rules, laws, and approved business practices; and 

support for taxpayers in the areas of pre-filing agreements, determination letters, and 

advance pricing agreements. The activities include: 

• Tax Law Interpretation and Published Guidance interprets tax law through 

published guidance, technical advice, and other technical legal services. 

• General Legal Services provides advice to the IRS on non-tax legal issues, 

including procurement, personnel, labor relations, equal employment 

opportunity, fiscal law, tort claims and damages, ethics, and conflict of interest. 

• Rulings and Agreements applies the tax law to specific taxpayers in the form of 

pre-filing agreements, determination letters, advance pricing agreements, and 

other pre-filing determinations and advice. 

• International Regulatory Legal Support supports Counselʼs work in tax law 

interpretation and rulings and agreements related to international issues. 

• Return Preparer Strategy provides staffing, training, and direct support associated 

with the Return Preparer Strategy. 

• Office of Professional Responsibility identifies, communicates, and enforces 

Treasury Circular 230 standards of competence, integrity, and conduct of those 

who represent taxpayers before the IRS, including attorneys, Certified Public 

Accountants (CPAs), enrolled agents, enrolled actuaries and appraisers, and other 

professionals. 
IRS ‐ 76

Description of FY 2020 Performance - Regulatory

In FY 2020, IRS published 172 items: 120 Priority Guidance Plan (PGP) projects and 

52 ministerial rulings. Ministerial projects are publications that only involve ministerial 

matters (such as applicable federal interest rates and monthly bond factor amounts). 

They are usually published on an annual basis. Many items published in FY 2020 

involved complex and novel issues. For example, four of the published items pertain to a 

provision revised by the Tax Cuts and Jobs Act (TCJA) limiting the business interest 

deduction. Two items addressed the new Opportunity Zone provisions of the TCJA, 

which provide preferential tax treatment to investments made in economically 

distressed communities. Over twenty items were published to implement the Families 

First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic 

Security Act (CARES) and provided relief in response to the COVID-19 pandemic 

emergency. The 2020-2021 PGP, published on November 17, 2020 and covering July 

2020 through June 2021, lists 191 projects. 

To help improve the taxpayer experience, the IRS remains firmly committed to educating 

tax professionals about their responsibilities and limitations under Treasury Department 

Circular 230, Regulations Governing Practice before the Internal Revenue Service 

(Circular 230), and their ethical obligations to taxpayers and tax administration . A 

regulation project is underway to revise Circular 230 to, reflect adverse litigation and 

align its rules with modern practice standards. In addition, the Administration has 

proposed legislation to allow the IRS to regulate paid tax return preparers by imposing 

minimum standards, thereby increasing the quality of return preparation and related 

advice provided to taxpayers. These standards will also enable the agency to more 

effectively combat the problems to tax administration caused by untrained and 

unscrupulous preparers. 

During FY 2020, the IRS performed its outreach activities through in-person and virtual 

presentations conducted through on-line webinars, telephonic operations, and 

electronic media. The IRS created a new webinar titled, The Office of Professional 

Responsibility: Circular 230 and What You Need to Know About Practicing before the 

IRS, viewed by more than 11,300 tax professionals. The IRS educated tax professionals 

about Circular 230 provisions at numerous events, including the IRS Nationwide Tax 

Forums. In FY 2020, the IRS reached nearly 31,900 tax professionals and IRS employees 

during 25 events, which consisted of in-person, telephonic, and electronic media. 
IRS ‐ 77

FY 2022 Changes by Budget Activity 

2.1.5 – Budget and Performance Report and Plan

Dollars in thousands

Regulatory FTE Amount

FY 2021 Operating Plan 990 $185,543

Changes to Base:

Maintaining Current Levels (MCLs) $5,124

Pay Annualization (1.0% average pay raise) 394

Pay Raise (2.7% average pay raise) 3,203

Non-Pay 382

FERS Contribution Increase 1,145

Subtotal FY 2022 Changes to Base $5,124

FY 2022 Current Services 990 $190,667

Program Increases:

Ensure Fairness of the Tax System 4 $842

Subtotal FY 2022 Program Increases 4 $842

Total FY 2022 Request (Before PIAA) 994 $191,509

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan 4 $5,966

Percent Change FY 2022 Request over FY 2021 Operating Plan 0.40% 3.22%

Dollars in thousands

Regulatory FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating Plan Request

Appropriated Resources1 $137,245 $131,662 $170,222 $174,624 $157,374 $185,543 $191,509

Reimbursable Resources2 202 160 593 412 252 287 303

User Fees2 9,233 9,537

Budget Activity Total $146,680 $141,359 $170,815 $175,036 $157,626 $185,830 $191,812

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.
IRS ‐ 78

Operations Support 

Appropriation Description 

The Operations Support appropriation provides funding for overall planning, direction, 

and support for the IRS, including shared service support related to facilities services, 

rent payments, printing, postage, and security. This appropriation funds headquarters 

policy and management activities such as corporate support for strategic planning; 

communications and liaison; finance; human resources; equity, diversity, and inclusion; 

research and statistics of income; and necessary expenses for information systems and 

telecommunication support, including development, security, and maintenance of the 

IRSʼs information systems. 

The Operations Support budget request for FY 2022 is $4,448,195,000 in direct 

appropriations and 12,193 FTE, excluding the proposed program integrity allocation 

adjustment. This is an increase of $344,093,000, or 8.38 percent, and 156 FTE more than 

the FY 2021 Operating Plan level of $4,104,102,000 and 12,037 FTE (post-transfer). 
IRS ‐ 79

2.1 – Budget Adjustments Table

Dollars in thousands

Operations Support

Summary of Proposed FY 2021 Request FTE Amount

FY 2021 Operating Plan 12,037 $4,104,102

Changes to Base:

Maintaining Current Levels (MCLs) $100,219

Pay Annualization (1.0% average pay raise) 4,699

Pay Raise (2.7% average pay raise) 38,157

Non-Pay 42,546

FERS Contribution Increase 14,817

Efficiencies/Savings: ($91)

Increase e-File Savings (91)

Subtotal FY 2022 Changes to Base $100,128

FY 2022 Current Services 12,037 $4,204,230

Program Changes:

Program Increases

Putting Taxpayers First 143 104,333

Taxpayer Experience Strategy 143 104,333

Ensure Fairness of the Tax System 13 69,409

Improve Live Assistance 69,833

Electric Vehicles and Associated Infrastructure 390

Subtotal FY 2022 Program Increases 156 $243,965

Total FY 2022 Budget Request 12,193 $4,448,195

PIAA Program Increases

Increase Audit Coverage 15 39,493

Increase Collection Coverage 20 46,334

Expand Coverage in the Tax-Exempt Sector 7,998

Enhance Return Review Program 34,953

Enhance Enforcement Operations 667

Subtotal FY 2022 PIAA Program Increases 35 $129,445

Total FY 2022 Request 12,228 $4,577,640

See footnotes in 1.1 -- Appropriations Detail Table
IRS ‐ 80

2.2 – Object Classification Obligations 

Dollars in thousands

Operations Support

Object Classification

FY 2020

Operating Plan

FY 2021

Operating Plan

FY 2022

Request

11.1 Full-Time Permanent Positions 1,318,072 1,339,822 1,404,468

11.3 Other than Full-Time Permanent Positions 5,990 5,350 5,536

11.5 Other Personnel Compensation 19,400 33,940 35,886

11.8 Special Personal Services Payments 172 181 185

11.9 Personnel Compensation (Total) 1,343,634 1,379,293 1,446,075

12.1 Personnel Benefits 441,837 483,805 515,146

13.0 Benefits to Former Personnel 57 30 31

Total Personnel and Compensation Benefits $1,785,528 $1,863,128 $1,961,252

21.0 Travel 16,823 7,938 10,161

22.0 Transportation of Things 14,068 14,036 15,333

23.1 Rental Payments to GSA 590,108 579,736 602,332

23.2 Rent Payments to Others 11,833 6,914 7,147

23.3 Communications, Utilities, & Misc 317,460 311,545 350,039

24.0 Printing & Reproduction 20,283 19,746 20,984

25.1 Advisory & Assistance Services 490,855 638,496 686,961

25.2 Other Services 30,051 29,188 44,673

25.3 Purchase of Goods & Services from Govt. Accounts 71,176 56,744 63,564

25.4 Operation & Maintenance of Facilities 186,179 199,037 215,468

25.6 Medical Care 14,267 14,973 16,943

25.7 Operation & Maintenance of Equipment 61,774 66,088 73,796

26.0 Supplies and Materials 9,145 7,240 10,501

31.0 Equipment 227,335 255,972 317,302

32.0 Land and Structures 37,632 32,645 50,778

42.0 Insurance Claims & Indemnities 483 676 961

91.0 Unvouchered

Total Non-Personnel $2,099,472 $2,240,974 $2,486,943

New Appropriated Resources $3,885,000 $4,104,102 $4,448,195

Budget Activities:

Infrastructure 881,670 886,713 971,008

Shared Services & Support 990,690 1,024,654 1,088,217

Information Services 2,012,640 2,192,735 2,388,970

New Appropriated Resources $3,885,000 $4,104,102 $4,448,195

FTE 12,036 12,037 12,193

See footnotes in 1.1 -- Appropriations Detail Table

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 million 

Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.
IRS ‐ 81

2.3 – Appropriation Detail Table 

2F – Infrastructure 

($971,008,000 in direct appropriations and an estimated $1,235,000 from reimbursable 

programs): This budget activity funds administrative services related to space and 

housing, rent and space alterations, building services, maintenance, guard services, and 

non-IT equipment. The program activities include: 

• Building Delegation oversees and manages the IRS GSA-delegated buildings, 

including cleaning, maintenance, utilities, protection, administrative, and 

recurring and one-time repair costs. 

• Rent provides resources for all IRS rent needs. 

• Space and Housing/Non-IT Equipment provides management of all IRS building 

services, maintenance, space alterations, guard services, custodial overtime, utility 

service needs, and non-IT equipment. 

• Security covers all physical security costs, including guard services, security 

equipment and maintenance, countermeasures, Homeland Security Presidential 

Directive 12 (HSPD-12) and Treasury Enterprise Identity Credential and Access 

Management (TEICAM). 

Dollars in thousands

Operations Support

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Infrastructure 881,670 886,713 971,008 84,295 9.51%

Shared Services and Support 4,947 990,690 5,122 1,024,654 5,140 1,088,217 18 63,563 0.35% 6.20%

Information Services 7,023 2,012,640 6,915 2,192,735 7,053 2,388,970 138 196,235 2.00% 8.95%

Subtotal New Appropriated Resources 11,970 $3,885,000 12,037 $4,104,102 12,193 $4,448,195 156 $344,093 1.30% 8.38%

Other Resources:

Reimbursables 81 64,571 71 71,864 73 75,816 2 3,952 2.82% 5.50%

Offsetting Collections - Non Reimbursables

User Fees 4 374,671 15 455,844 15 431,500 (24,344) -5.34%

Recovery from Prior Years 2,104 10,328 10,328

Recoveries Paid 6 6

Unobligated Balances from Prior Years 66,455 87,247 90,238 2,991 3.43%

Transfers In/Out

Resources from Other Accounts 2 26,849 27,211 362 1.35%

Subtotal Other Resources 87 $507,801 86 $652,138 88 $635,099 2 ($17,039) 2.33% -2.61%

Total Budgetary Resources 12,057 $4,392,801 12,123 $4,756,240 12,281 $5,083,294 158 $327,054 1.30% 6.88%

See footnotes in 1.1--Appropriations Detail Table

FY 2020 to FY 2021 

Request

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million under the Coronavirus Aid, Relief, and Economic Security 

(CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 

million Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.

FY 2021 to FY 2022 

Request

FY 2020

Operating Plan

FY 2021

Operating Plan

FY 2022

Request

Change % Change
IRS ‐ 82

Description of FY 2020 Performance - Infrastructure 

Rent 

The Rentable Square Feet per Person is the amount of rentable square feet the IRS 

maintains per person requiring space. After payroll, rent is the IRSʼs largest operating 

expense; therefore, the IRS continues to take steps to reduce its total office space. 

Through FY 2020, the Rentable Sq. Ft. per Person was 278 compared to 298 in FY 2019. 

The IRS continued to use data to select the best opportunities to release excess facility 

space by leveraging the timing of expiring leases and planned renovation projects, and 

by analyzing IRS housing needs to plan building closures and consolidations. In FY 2020, 

the IRS released 600,000 square feet of space including the closure of eight buildings 

from its portfolio and the closure of the former submission processing building in 

Covington, Kentucky. The FY 2021 target is set at 280 sq. ft. while the FY 2022 target is 

270 sq. ft. 

Security 

Security of taxpayer data and providing a secure environment for employees are of 

utmost importance to the IRS. Unlike any other filing season, the IRS had to modify key 

operations in response to the COVID-19 pandemic, such as closing Taxpayer Assistance 

Centers, tax processing centers, and offices nationwide. Nonetheless, core IRS functions 

continued, and the IRS continued to deliver the filing season. 

Throughout the COVID-19 pandemic, technology was the cornerstone of the IRSʼs ability 

to continue mission-critical work to support the American taxpayer. In FY 2020, the IRS 

ensured continuity of services and support to taxpayers by: 

• Accelerating an initiative to enable customer service representatives (CSR) and tax 

examiners (TE) to telework. By June 2020, the IRS had supplied telework 

equipment for more than 11,300 CSRs and TEs, representing about 81 percent of 

this workforce. 

• Establishing the Crisis Relief Hotline, a voice mailbox for the IRS Chief Counsel to 

address taxpayer concerns related to COVID-19 relief. 

• Standing up a new phone line to answer the most common questions about 

Economic Impact Payments. 

• Supplying about 20,000 laptops to newly teleworking employees, enabling 

continuity of critical services. 

• Delivering an IRS-wide solution to enable secure email with attachments. This 

enables taxpayers and the IRS to communicate electronically and exchange 

information securely. 

• Expanding enterprise electronic fax capabilities to support existing programs, 

such as income verification express service and setting up new fax numbers to 
IRS ‐ 83

support advanced refundable credits, Small Business Administration disaster 

claims, and other tax forms as part of the CARES Act. The IRS can accept 90,000 

faxes a day. 

The IRS worked on several initiatives related to the Security Summit, a collaborative 

effort between the IRS, state tax administrators and private-sector tax partners. In FY 

2020, the IRS: 

• Held its annual Security Summit meeting in December 2019. The Security Summit 

continues to demonstrate the strength of the public-private partnership to 

combat identity theft. 

• Continued the Identity Theft Tax Refund Fraud – Information Sharing and 

Analysis Center (ISAC) initiative, which is an important platform for the IRS and its 

partners in their daily efforts to combat identity theft by sharing current data on 

emerging trends. 

• Hosted a Virtual Currency Summit that brought together stakeholders to discuss 

virtual currency industry issues and subsequently issued several pieces of 

guidance, including Notice 2014-21 and Revenue Ruling 2019-24. The IRS sent 

about 10,000 letters to virtual currency owners advising them to file amended 

returns and pay back taxes if they omitted or inaccurately reported virtual 

currency transactions. 

FY 2022 Changes by Budget Activity

Dollars in thousands

Infrastructure FTE Amount

FY 2021 Operating Plan $886,713

Changes to Base:

Maintaining Current Levels (MCLs) $17,868

Pay Annualization (1.0% average pay raise) 1

Pay Raise (2.7% average pay raise) 7

Non-Pay 17,859

FERS Contribution Increase 1

Efficiencies/Savings $1

Personnel Savings 1

Subtotal FY 2022 Changes to Base $17,869

FY 2022 Current Services $904,582

Program Increases:

Putting Taxpayers First 3,743

Taxpayer Experience Strategy 3,743

Ensure Fairness of the Tax System 29,340

Improve Live Assistance 33,343

Subtotal FY 2022 Program Increases $66,426

Total FY 2022 Request (Before PIAA) $971,008

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan $84,295

Percent Change FY 2022 Request over FY 2021 Operating Plan 9.51%
IRS ‐ 84

2.1.6 – Budget and Performance Report and Plan 

2G – Shared Services and Support 

($1,088,217,000 in direct appropriations, and an estimated $35,558,000 from 

reimbursable programs): This budget activity funds policy management, IRS-wide 

support for research, strategic planning, communications and liaison, finance, human 

resources, and equity, diversity, and inclusion programs. It also funds printing and 

postage, business systems planning, security, legal services, and procurement. The 

program activities include: 

• National Headquarters Management and Administration directs the 

management activities of strategic planning, communications and liaison, 

finance, human resources, equity, diversity and inclusion programs, business 

systems planning, embedded training, and the Treasury Franchise Fund. It sets 

policies and goals, provides leadership and direction for the IRS, and builds 

partner relationships with key stakeholders (Congress, GAO, and OMB). It 

provides policy guidance for conducting planning and budgeting strategies, 

conducting analyses of programs and investments to support strategic 

decision-making, and developing and managing human resources. It also 

includes official reception and representation expenses. 

• Facilities Management & Security Services provides facilities and security 

services to deliver a safe, secure, and optimal work environment to IRS 

employees. 

• Procurement supports the procurement function of the IRS. 

Dollars in thousands

Infrastructure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request

Appropriated Resources1 $838,048 $856,655 $870,360 $891,140 $867,354 $886,713 $971,008

Reimbursable Resources2 626 634 662 681 747 1,170 1,235

User Fees2 999

Budget Activity Total $838,674 $857,289 $871,022 $892,820 $868,101 $887,883 $972,243

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.

Infrastructure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Measure Actual Actual Actual Actual Actual Target Target Target

Rentable Square Feet per Person (Ot, L) 297 301 298 278 298 280 270

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and interappropriation transfers.

Key: Ot - Output/Workload Measure L - Strategic Plan Goal
IRS ‐ 85

• Equity, Diversity, and Inclusion Field Services provides staffing, training, and 

direct support to plan and manage the IRSʼs Equity, Diversity, and Inclusion 

program. 

• Communications and Liaison coordinates local government and liaison 

relationships; handles congressional, state, and national stakeholder 

relationships and issues; coordinates cross-cutting issues, including managing 

audits and legislative implementation; handles national media contacts and 

local media relationships; and ensures IRS-wide compliance with disclosure and 

privacy laws. 

• Employee Support Services plans and manages financial services, including 

relocation, travel, purchase cards, corporate express, and employee clearances. 

• Treasury Complaint Centers plan and manage the Treasury Complaint centers. 

• Shared Support not provided by Facilities Management & Security Services 

provides resources for shared cross-functional support, such as postage meters, 

shredders, courier services, and post office boxes. 

• Printing and Postage – Media and Publications provides operating divisions 

with printing and postage, including shipping of taxpayer and internal-use 

materials. 

• Statistics of Income provides resources for researching annual income, financial, 

and tax data from tax returns filed by individuals, corporations, and tax-exempt 

organizations. 

• Research provides resources for market-based research to identify compliance 

issues, for conducting tests of treatments to address noncompliance, and for 

the implementation of successful strategies to address taxpayer noncompliance 

behavior. 

• Protection of Sensitive Information manages and oversees the staffing, training, 

equipment, and direct support for the protection of IRS employees, facilities, 

and assets, and the protection and proper use of identity information. 

• W&I Business Modernization Support provides staffing, training, and support 

for W&Iʼs enterprise-wide business modernization efforts, including reengineered business processes. 
IRS ‐ 86

Description of FY 2020 Performance – Shared Services and Support

Operations Support continues to provide shared services to all IRS programs. 

Human Capital 

The future of the IRS depends on a workplace culture that empowers employees to 

improve the taxpayer experience and uphold the tax code fairly. In FY 2020, the IRS: 

• Developed practical COVID-19 safety measures that included temporarily 

scaling back in-person meetings, closing Taxpayer Assistance Centers, and 

suspending telephone lines. The IRS frequently reminded employees that tools 

were available to them through the Employee Assistance Program (EAP) and 

encouraged them to use the EAP. Frequent town halls, news alerts, and humaninterest features in monthly publications encouraged all employees to stay in 

touch during the pandemic period. 

• Revitalized its Enterprise Workforce Planning Program (WFP) to improve 

talent management agency-wide, with an agile IRS workforce responsive to 

current and future operational requirements and changes as its primary goal. The 

Enterprise WFP promotes integrating human capital management business 

strategies, processes, and procedures to inform Talent Management function and 

enables the delivery of a sustainable workforce planning capability. 

• Developed and deployed Career+ career pathing and career broadening 

experiences. The newly created Enterprise Talent Development Program provides 

career management for similar occupational series to align career goals with 

developmental and training opportunities. 

• Entered a new partnership with Gallaudet University to expand Disability 

Service Division employeesʼ knowledge and understanding of the “deaf culture” 

customer experience and expectations. In fostering a diverse and inclusive 

workforce, the IRS encouraged employees to self-identify known disabilities and 

update the human resources system to obtain accurate demographics for IRS 

employees with disabilities. 

Research 

The IRS invests in research projects to help its leaders make data and evidence-driven 

improvements to IRS operations and taxpayer services. In FY 2020, the IRS: 

• Developed new features for the graph database that included a pattern search 

capability and enhanced reporting on specific compliance issues. The graph data 

environment currently supports identity theft detection, evaluations of money 

laundering issues for field examination, with a planned expansion to detect 

changes in the tax structures of large corporations. 
IRS ‐ 87

• Developed its first learning agenda, which outlines key research questions that 

align to its FY 2018-2022 Strategic Plan goals and objectives. This was the first 

learning agenda of any bureau within Treasury and is a significant step in the 

implementation of the Foundations for Evidence-Based Policymaking Act of 2018. 

• Created a forecasting tool to leverage sets of data to provide a balanced 

workforce planning approach. Data sets used in the forecasting tool included 

projected retirements and anticipated hiring and training needs to accurately 

identify human resource needs. 

• Developed data-driven methodologies to prioritize and validate IRS Mission 

Critical positions. The results of this initiative inform the IRSʼs initial workforce 

planning service delivery model and business processes.

FY 2022 Changes by Budget Activity

Dollars in thousands

Shared Services and Support FTE Amount

FY 2021 Operating Plan 5,122 $1,024,654

Changes to Base:

Maintaining Current Levels (MCLs) $29,687

Pay Annualization (1.0% average pay raise) 1,829

Pay Raise (2.7% average pay raise) 14,853

Non-Pay 7,167

FERS Contribution Increase 5,838

Efficiencies/Savings ($10,057)

Personnel Savings (10,057)

Subtotal FY 2022 Changes to Base $19,630

FY 2022 Current Services 5,122 $1,044,284

Program Increases:

Putting Taxpayers First 5 1,760

Taxpayer Experience Strategy 5 1,760

Ensure Fairness of the Tax System 13 16,096

Improve Live Assistance 6,840

Convert Vehicle Fleet to Electric 390

Subtotal FY 2022 Program Increases 18 $25,086

Total FY 2022 Request (Before PIAA) 5,140 $1,069,370

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan 18 $44,716

Percent Change FY 2022 Request over FY 2021 Operating Plan 0.35% 4.36%
IRS ‐ 88

2.1.7 – Budget and Performance Report and Plan

2H – Information Services 

($2,388,970,000 in direct appropriations, $39,023,000 in reimbursable resources, and 

$431,500,000 from user fees): This budget activity funds staffing, equipment, and related 

costs to manage, maintain, and operate the information systems critical to the support 

of tax administration programs. This includes the design and operation of security 

controls and disaster recovery planning. This budget activity funds the development and 

maintenance of the millions of lines of programming code that support all aspects and 

phases of tax processing and the operation and administration of mainframes, servers, 

personal computers, networks, and a variety of management information systems. The 

program activities include: 

• Enterprise Program Management Office (EPMO) provides oversight and project 

integration into daily IT processes for large-scale development, modernization, 

and enhancement projects. It enables a coordinated, cross-functional project 

planning, implementation and performance assessment effort aimed at 

improving IT systems quality, cost, and delivery schedule. 

• Security Services ensures effective security policies and programs to safeguard 

taxpayer records, IRS employees, facilities, business processes, systems, and other 

resources. The program is responsible for corrective action efforts to establish 

adequate IRS-wide security, including Security Policy Support and Oversight, 

Mission Assurance, and Modernization Security. 

• IT Executive Oversight provides support to the immediate Office of the Chief 

Information Officer, and the Stakeholder Management (including program 

oversight). The program provides executive direction for the IT organization, 

enabling IT to be a customer-focused supplier of IT solutions that is responsive to 

customer business priorities and meets functional and operational needs 

effectively. 

Dollars in thousands

Shared Services and Support FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request

Appropriated Resources1 $1,090,192 $964,702 $920,283 $900,287 $961,999 $1,024,654 $1,088,217

Reimbursable Resources2 19,443 19,194 27,995 30,360 27,368 33,705 35,558

User Fees2 1,000 1,000 1,000

Budget Activity Total $1,110,635 $984,896 $949,278 $930,647 $989,367 $1,058,359 $1,123,775

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation 

transfers.
IRS ‐ 89

• Application Development performs the analysis, design, development, testing, 

and implementation of about 85,000 application programs supporting critical tax 

processing, management information reporting and financial management 

support systems for the IRS. This program also supports external trading partner 

data exchanges with federal government agencies, state and local governments, 

and other third-party entities. The program controls application source code and 

deploys applications to the production environment. 

• Enterprise Operations provides efficient and reliable computing services for all 

IRS business entities and taxpayers including the deployment and maintenance of 

infrastructure that supports critical tax processing, management information 

reporting, and financial management support systems for the IRS. It also includes 

a comprehensive disaster recovery capability to ensure continued operations in 

the event of a major interruption of service. 

• Enterprise Network provides telecommunications service delivery to all customer 

segments, including management of day-to-day operations of the 

telecommunications environment. This includes the operation of equipment and 

services to meet business user needs and the execution of routine changes for 

scheduled and unscheduled modifications to the telecommunications 

infrastructure and applications. It addresses all phases of engineering, acquisition, 

implementation, and operation of telecommunications systems and services, 

including voice, video, and data communications. 

• Enterprise Services (ES) plans and manages service and delivery methods used 

across the IT organization, including defining the current and target technology 

architecture and developing the transition strategy towards the target 

environment. ES shares in the responsibility that translates enterprise and project 

objectives into targeted, actionable investments to provide the framework and 

direction for cohesive, successful modernization across the IT enterprise. ES also 

provides systems engineering services that promote standards-based, enterprise 

technology solutions and serves as the enterprise testing authority partnering 

with customers to improve the quality of IT systems, products, and services. Also, 

ES provides shared infrastructure that leverages reusable engineering design 

patterns and best practices for standardized, virtual, and secure environments. 

These environments allow multiple BSM projects to develop, test, deploy, 

operate, and monitor in a common approach. 

• End User & Network Services maintains the IRS automated business processes at 

headquarters and field sites, effectively allowing the IRS to fulfill its mission. The 

support includes technical systems and applications software support to end 

users, maintaining legacy operations, local and corporate systems administration 
IRS ‐ 90

activities, email, and domain user account maintenance. This activity monitors IRS 

network and systems administration by utilizing automated management tools. It 

performs asset management activities, and maintenance of the voice and data 

infrastructure at the territory offices. 

• Strategy and Planning provides the management and oversight of investments in 

IT, demand analysis, project reporting, portfolio management, strategic planning, 

financial management, acquisition planning, and other IT operational priorities. It 

also provides expertise for requirements guidance, processes, procedures, and 

tools that allows for transformation of the IT enterprise. 

• Information Technology Security Certification and Accreditation provides design 

and operations of security controls and the technical mechanisms used by the IRS 

systems and applications as part of the development of the system security plan, 

system risk assessment, and IT contingency plan. It also supports security testing 

and evaluation as part of the certification process, including time preparing 

system documentation, interviewing contractors, and responding to information 

requests. 

• Disaster Recovery supports activities related to Enterprise Disaster Recovery 

planning, including testing, evaluations, plan development, and technical and 

business assessments. 

• Infrastructure Currency (IC) funds the upgrade or replacement of outdated and 

aged technology solutions related to the IT hardware, software, and applications 

development product portfolio. 

• IT Infrastructure centralizes the resources achieved through efficiencies in various 

parts of IT to ensure that replacement of the aging infrastructure is addressed 

corporately. 

Description of FY 2020 Performance – Information Services 

The Percent of Aged Hardware is a measure that shows the quantity of IT hardware in 

operation past its useful life as a percentage of total hardware in use. The IRS made 

considerable progress reducing the percentage of aged hardware within the IT 

environment from 31 percent at the end of FY 2019 to 16 percent at the end of FY 2020 

which exceeded the goal of 30 percent. This represents a reduction of nearly 

18,000 aged assets during the fiscal year through efforts such as refreshing employee 

workstations. 
IRS ‐ 91

IRS will set the target at 20 percent and in FY 2021 and FY 2022. The IRS will monitor 

progress against FY 2021 aged hardware replacement targets. 

FY 2022 Changes by Budget Activity 

52.2% 52.3%

45.5%

31.0%

16.0%

0

50000

100000

150000

200000

2016 2017 2018 2019 2020

Percent of Aged Infrastructure

Amount of Aged Infrastructure Total Infrastructure

Dollars in thousands

Information Services FTE Amount

FY 2021 Operating Plan 6,915 $2,192,735

Changes to Base:

Maintaining Current Levels (MCLs) $52,663

Pay Annualization (1.0% average pay raise) 2,869

Pay Raise (2.7% average pay raise) 23,296

Non-Pay 17,520

FERS Contribution Increase 8,978

Efficiencies/Savings $9,965

Increase e-File Savings (91)

Personnel Savings 10,056

Subtotal FY 2022 Changes to Base $62,628

FY 2022 Current Services 6,915 $2,255,363

Program Increases:

Putting Taxpayers First 138 98,831

Taxpayer Experience Strategy 138 98,831

Ensure Fairness of the Tax System 23,973

Improve Live Assistance 29,650

Subtotal FY 2022 Program Increases 138 $152,454

Total FY 2022 Request (Before PIAA) 7,053 $2,407,817

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan 138 $215,082

Percent Change FY 2022 Request over FY 2021 Operating Plan 2.00% 9.81%
IRS ‐ 92

2.1.8 – Budget and Performance Report and Plan

Information Services Budget and Performance Plan

Dollars in thousands

Information Services FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request

Appropriated Resources1 $1,883,667 $1,950,191 $2,390,357 $2,126,973 $1,972,916 $2,192,735 $2,388,970

Reimbursable Resources2 19,660 35,307 40,600 27,153 36,456 36,989 39,023

User Fees2 263,250 201,584 204,032 222,399 374,671 441,216 431,500

Budget Activity Total $2,166,577 $2,187,082 $2,634,989 $2,376,525 $2,384,043 $2,670,940 $2,859,493

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.

Information Services FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Measures Actual Actual Actual Actual Actual Target Target Target

Percent of Aged Hardware (Ot, L)1

52.2% 52.3% 45.5% 31.0% 16.0% 30.0% 20.0% 20.0%

Key: Ot - Output/Workload Measure L - Strategic Plan Goal

1

The measure definition changed in FY 2018; removing certain asset categories (fax machines, low-end printers and scanners) that are no longer being actively refreshed 

from the calculation to more accurately define the inventory that’s reflective of risk to the IT environment
IRS ‐ 93

Business Systems Modernization 

Appropriation Description 

The Business Systems Modernization (BSM) appropriation provides resources for the 

planning and capital asset acquisition of IT to modernize the IRS business systems. 

The BSM budget request for FY 2022 is $305,032,000 in direct appropriations and 412 

FTE, excluding the proposed integrity allocation adjustment. This amount is an increase 

of $82,308,000, or 36.96 percent, and 18 FTE more than the FY 2021 Operating Plan level 

of $222,724,000 and 394 FTE. 

2.1 – Budget Adjustments Table 

Dollars in thousands

Business Systems Modernization

Summary of Proposed FY 2021 Request FTE Amount

FY 2021 Operating Plan 394 $222,724

Changes to Base:

Maintaining Current Levels (MCLs) $4,165

Pay Annualization (1.0% average pay raise) 163

Pay Raise (2.7% average pay raise) 1,327

Non-Pay 2,232

FERS Contribution Increase 443

Subtotal FY 2022 Changes to Base $4,165

FY 2022 Current Services 394 $226,889

Program Changes:

Program Increases

Integrated Modernization Business Plan 18 $78,143

Subtotal FY 2022 Program Increases 18 $78,143

Total FY 2022 Budget Request 412 $305,032

See footnotes in 1.1 -- Appropriations Detail Table
IRS ‐ 94

2.2 – Object Classification Obligations 

Dollars in thousands

Business Systems Modernization

Object Classification

FY 2020

Actuals

FY 2021

Operating Plan

FY 2022

Request

11.1 Full-Time Permanent Positions 62,085 37,340 51,033

11.3 Other than Full-Time Permanent Positions 84 29 59

11.5 Other Personnel Compensation 563 224 367

11.9 Personnel Compensation (Total) 62,732 37,593 51,459

12.1 Personnel Benefits 16,643 12,535 17,027

Total Personnel and Compensation Benefits $79,375 $50,128 $68,486

21.0 Travel 219 411 172

25.1 Advisory & Assistance Services 90,948 163,523 195,212

25.2 Other Services 11

25.3 Purchase of Goods & Services from Govt. Accounts 4

25.7 Operation & Maintenance of Equipment 581 2,018 2,592

26.0 Supplies and Materials 7 2 1

31.0 Equipment 8,855 6,642 38,569

Total Non-Personnel $100,625 $172,596 $236,546

New Appropriated Resources $180,000 $222,724 $305,032

Budget Activities:

IT Investments 180,000 222,724 305,032

New Appropriated Resources $180,000 $222,724 $305,032

FTE 426 394 412

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 million 

Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.

See footnotes in 1.1 -- Appropriations Detail Table
IRS ‐ 95

2.3 – Appropriation Detail Table 

2I – Business Systems Modernization 

($305,032,000 in direct appropriations): This budget activity funds the planning and 

capital asset acquisition of information technology to modernize IRS business systems 

and processes, including labor and related contractual costs, in support of the IRS 

mission. The IRS is implementing its multiyear modernization plan to address the longterm sustainability and affordability of its technological environment, eliminating 

organizational silos, and driving efficiencies and cost savings throughout the enterprise. 

The plan defines the scope of capabilities, sets timelines, and targets, describes 

milestones, and includes outcome measures for each investment. 

Description of FY 2020 Performance - BSM

The IRSʼs modernization efforts focus on building and deploying advanced information 

technology systems, processes, and tools to improve efficiency and productivity. Major 

IT investments are measured by the proportion of projects within +/- 10 percent of 

budgeted cost and schedule variance. The FY 2021 and FY 2022 targets for both 

measures are 90 percent. For more detail about BSM 2020 accomplishments and 2021 

performance goals, please see Publication 5453, Information Technology (IT) Annual Key 

Insights Report, February 2021: https://www.irs.gov/pub/irs-pdf/p5453.pdf. 

Dollars in thousands

Business Systems Modernization

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Business Systems Modernization 426 180,000 394 222,724 412 305,032 18 82,308 4.57% 36.96%

Subtotal New Appropriated Resources 426 $180,000 394 $222,724 412 $305,032 18 $82,308 4.57% 36.96%

Other Resources:

Reimbursables

Offsetting Collections - Non Reimbursables

User Fees 108,872 29,500 (29,500) -100.00%

Recovery from Prior Years 9,380 5,263 5,263

Recoveries Paid 203 203

Unobligated Balances from Prior Years 56 30,191 15 29,573 15 36,805 7,232 24.45%

Transfers In/Out

Resources from Other Accounts

Subtotal Other Resources 56 $148,443 15 $64,539 15 $42,271 ($22,268) -34.50%

Total Budgetary Resources 482 $328,443 409 $287,263 427 $347,303 18 $60,040 4.40% 20.90%

See footnotes in 1.1--Appropriations Detail Table

Change % Change

FY 2021 to FY 2022 Request

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million under the Coronavirus Aid, Relief, and Economic 

Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 

117-2), the $417 million Program Integrity Allocation Adjustment, and the $79 billion mandatory funding proposal.

FY 2020

Operating Plan

FY 2021

Operating Plan

FY 2022

Request

FY 2021 to FY 2022 

Request
IRS ‐ 96

Percent of Major IT Investments within +/- 10 percent Cost Variance at the 

Investment Level: Sixteen of 19 major investments (84.2 percent) were within the cost 

variance threshold in FY 2020 failing to meet the target of 90 percent. Shown below are 

the three investments falling outside the +/- 10 percent cost variance. 

• Account Management Services (AMS) – IRS allocated 10 fewer full time 

equivalent (FTEs) to the AMS project, resulting in a cost variance. The FY 2020 

labor budget initially allocated 70 FTE to the project. 

• Customer Account Data Engine 2 (CADE 2) – This project called for two phases 

of design, development, and test activities. FY 2020 budgeted for the increased 

resources needed for phase two. In the first quarter of FY 2020, IRS decided to 

continue with phase one resource levels. The project stabilized with the phase 

one level of resources and IRS will not allocate additional resources to the 

project.

• Foreign Account Tax Compliance Act (FATCA) – IRS categorized the FATCA 

program as a “keep the lights on” only project, pausing enhancements originally 

planned. As a result, this project underran its cost for FY 2020. 

Percent of Major IT Investments within +/- 10 percent Schedule Variance at the 

Investment Level: Eighteen of 19 major investments (94.7 percent) were within the 

schedule variance threshold at the close of FY 2020 exceeding the target of 90 percent. 

Shown below is the one investment that fell outside the +/- 10 schedule variance. 

• Modernized IRS Operations Investment – IRS funds multiple modernization 

programs. Components of this investment were ahead of schedule causing a 

positive variance greater than 10 percent. 

IRS IT will closely monitor cost and schedule reporting for investments in FY 2021 to 

improve current performance levels for this measure.
IRS ‐ 97

FY 2022 Changes by Budget Activity

2.1.9 – Budget and Performance Report and Plan 

Dollars in thousands

Business Systems Modernization FTE Amount

FY 2021 Operating Plan 394 $222,724

Changes to Base:

Maintaining Current Levels (MCLs) $4,165

Pay Annualization (1.0% average pay raise) 1,490

Non-Pay 2,232

FERS Contribution Increase 443

Subtotal FY 2022 Changes to Base $4,165

FY 2022 Current Services 394 $226,889

Program Increases:

IRS Integrated Modernization Business Plan 18 78,143

Subtotal FY 2022 Program Increases 18 $78,143

Total FY 2022 Request (Before PIAA) 412 $305,032

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan 18 $82,308

Percent Change FY 2022 Request over FY 2021 Operating Plan 4.57% 36.96%

Dollars in thousands

Business Systems Modernization FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request

Appropriated Resources1 $190,945 $166,263 $110,000 $150,000 $180,000 $222,724 $305,032

Reimbursable Resources2

User Fees 25,464 77,418 89,713 108,872 29,500

Budget Activity Total $190,945 $191,727 $187,418 $239,713 $288,872 $252,224 $305,032

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursable resources and user fees.

Business Systems Modernization FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Measures Actual Actual Actual Actual Actual Target Target Target

76.2% 50.0% 72.2% 88.9% 84.2% 90.0% 90.0% 90.0%

85.7% 88.9% 83.3% 88.9% 94.7% 90.0% 90.0% 90.0%

Key: E - Efficiency Measure

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

Percent of Major IT Investments within +/- 10% Cost 

Variance at the Investment Level (E)1

Percent of Major IT Investments within +/- 10% Schedule 

Variance at the Investment Level (E)1
IRS ‐ 98

B - FY 2020 - FY 2022 IRS Integrated Modernization Business Plan  Pillar

Business Systems Modernization

Dollars in thousands

Funding

Category1

FY 2020

Actuals

FY 2021

Operating

Plan

FY 2022

CJ Submission

FY 2020 Actuals / FY 2021 Operating Plan / FY 2022 CJ Submission 150,436 222,724 305,032

Carryover Balance2 39,511 29,756 0

User Fees 108,939 29,500 0

Total Funding $298,886 $281,980 $305,032

Capital 233,385 208,906 232,336

Support 225 105 178

Labor 65,276 64,117 68,486

Subtotal Spend $298,886 $273,128 $301,000

FTE 354 394 412

Management Reserve 0 8,852 4,032

Total Spend plus MR $298,886 $281,980 $305,032

Web Applications   $30,266 $32,945 $30,000

Capital 20,769 21,242 16,200

Support 46 3 0

Labor 9,451 11,700 13,800

FTE 54 81 95

Taxpayer Digital Communications Outbound Notification (TDC‐ON) $3,103 $8,255 $10,000

Capital 2,435 6,555 9,000

Support 0 0 0

Labor 668 1,700 1,000

FTE 4 11 6

Live Assistance $107 $0 $15,000

Capital 0 0 12,000

Support 0 0 0

Labor 107 0 3,000

FTE 1 0 18

Taxpayer Experience ‐ Subtotal $33,476 $41,200 $55,000

FTE 58 92 119

Customer Account Data Engine (CADE 2) $95,908 $100,000 $100,000

Capital 70,635 76,767 76,227

Support 23 52 52

Labor 25,250 23,181 23,721

FTE 138 136 139

Customer Account Data Engine (CADE 2) Target State Capital $0 $0 $5,000

CADE 2 Target State will provide state‐of‐the‐art individual taxpayer account processing and data‐centric technologies

for maintaining and balancing individual taxpayer account data to reduce operations & maintenance costs, improve

taxpayer service quality, enhance responsiveness to legislative changes, and eliminate financial weaknesses.  The

program will allow the IRS to retire the most complex portion of the Individual Master File (IMF), a step towards fully

retiring the IMF.  

Enterprise Case Management $63,143 $64,000 $64,000

Capital 48,031 43,318 43,475

Support 114 50 50

Labor 14,998 20,632 20,475

FTE 81 113 112

Core Taxpayer Services and Enforcement ‐ Subtotal $159,051 $164,000 $169,000

FTE 219 249 251

Core Taxpayer Services and Enforcement

Providing modernized individual tax processing.   Completion of the “Customer Account Data Engine” (CADE) Transition

State 2 (TS2) will help modernize the technology environment that enables the IRS to process more than 150 million

individual tax returns each year.  This modernization enables enhanced data accessibility for online taxpayer services;

implements the latest financial requirements and security controls; and, supports business units to deploy advanced

analytical capabilities addressing key issues of compliance, fraud, and identity theft.  Funding in FY 2022 will ensure the

Individual Tax Processing Engine (ITPE) project, which is a key component of TS2, is able to convert approximately

200,000 lines of legacy assembly language code to modern software language.

Providing a modernized case management platform.  The IRS routinely interacts with individual taxpayers, small and

large businesses, tax‐exempt organizations, and a wide spectrum of intermediaries. The current case management

environment, comprised of multiple systems that often do not communicate with each other, causes the IRS to treat

each selected interaction as a separate case, which significantly limits the effectiveness and efficiency of each case

interaction.  This disconnect adds frustration and prolongs case resolution.  Funding will ensure the complex

undertaking of transitioning to an enterprise case management system with standard business processes.  The main

benefit is that authorized IRS employees will be able to see an individual taxpayer’s entire range of tax issues, relevant

case data, and communications, which will ultimately resolve cases faster.  

Taxpayer Experience

Improving interactions and communications with taxpayers, the IRS, and third parties by providing a broad range of self‐

service options, establishing secure information exchange, and building internal capabilities. By enabling authorized

third parties and taxpayers to interact digitally with the IRS, the investment provides a better user experience and

delivers consistent data and services.  Web Apps continues to deliver additional capabilities to the taxpayer in FY 2022

and beyond.  Funding will expand on a broad range of digital services the taxpayer and their representatives can

complete securely using their personal IRS online account. Taxpayers will be able to: update contact information, make

tax payments; schedule and modify scheduled payments; store bank information, all within online account, thus

improving revenue collection, and promoting voluntary compliance.  

Providing taxpayers access to fast, secure, and personalized digital communications delivered through a secure messaging

platform. The IRS will continue developing digital notices available through a secure online account for taxpayers who

prefer that channel over mailed correspondence. IRS will expand the capability to allow taxpayers the choice to opt in

or opt out of receiving paper notices and receive notifications through email and text message when a notice is

available. TDC‐ON will allow the IRS to move away from paper‐based notifications and allow taxpayers to navigate

directly to IRS online payment tools, increasing the likelihood of taxpayer acts and expediting the resolution of tax‐

related issues.

Implementation of Call Center technologies to improve the taxpayer experience. This includes both taxpayer‐facing

capabilities and infrastructure improvement to support the capabilities.  Funding for Live Assistance ensures

functionality that may include callback, live chat, automated chat, natural language processing, etc., which will help

alleviate taxpayer frustration related to long wait times, when millions of phone calls are received each year via IRS'

many toll‐free numbers, especially during the filing season.
IRS ‐ 99

 

1 Capital Investment funding: capital and contractor labor costs. Support funding: training, travel, supplies 

costs. Labor funding: IRS employee pay and benefits costs. 

2 For the Carryover Balance, the FY 2021 Operating Plan amount reflects a reduction of $11.3K to account 

for BSM Management Reserve funding that was transferred to a Q-Fund to cover a prior year obligation. 

 

3 Effective FY 2021, Core Infrastructure will be paid from the Operations Support appropriation because 

those expenses are enterprise costs and not specific to the BSM program. 

 

Robotics Process Automation $983 $855 $0

Capital 607 606 0

Support 4 0 0

Labor 372 249 0

FTE 250

Application Program Interface (API) Implementation $0 $5,000 $0

Capital 0 4,730 0

Support 0 0 0

Labor 0 270 0

FTE 020

Cloud Execution $2,502 $10,000 $0

Capital 2,217 8,500 0

Support 3 0 0

Labor 282 1,500 0

FTE 190

Next Generation Infrastructure $226 $73 $15,000

Capital 0 0 14,000

Support 1 0 0

Labor 225 73 1,000

FTE 126

Modernized IRS Operations ‐ Subtotal $3,711 $15,928 $15,000

FTE 5 17 6

Vulnerability and Threat Management $31,729 $23,171 $20,101

Capital 30,939 21,136 17,451

Support 0 0 0

Labor 790 2,035 2,650

FTE 5 12 18

Identity and Access Management $14,790 $9,123 $19,305

Capital 14,561 8,533 19,105

Support 0 0 0

Labor 229 590 200

FTE 142

Security Operations and Management $14,894 $13,705 $11,594

Capital 14,588 13,185 11,444

Support 32 0 0

Labor 274 520 150

FTE 131

Cybersecurity and Data Protection ‐ Subtotal $61,413 $46,000 $51,000

FTE 7 19 21

Architecture, Integration, and Management $26,567 $6,000 $11,000

Capital 20,036 4,333 8,434

Support 2 0 76

Labor 6,529 1,667 2,490

FTE 33 10 15

Core Infrastructure3 $14,668 $0 $0

Capital 8,567 0 0

Support 0 0 0

Labor 6,101 0 0

FTE 32 0 0

Subtotal Supporting Projects $41,235 $6,000 $11,000

FTE 65 10 15

Cybersecurity and Data Protection

Enabling proactive threat and vulnerability identification.   This is achieved by using real‐time intelligence information

and analytics, enhance security testing and process automation, protect sensitive data at rest through encryption, and

enhance both application and infrastructure audit capabilities to detect breaches and mitigate internal and external

threats effectively.  Funding will ensure the IRS focuses on preventing unauthorized access to tax accounts and

unauthorized disclosure of taxpayer data. These capabilities provide full visibility into servers and endpoints for

monitoring and analyzing data to identify and prevent threats.

Preventing malicious and unintended access and disclosure of taxpayer and other sensitive data by establishing trusted

and streamlined access to information through implementing Identity Access Management, Infrastructure Integrity, and

Privilege Management capabilities. Identity and Access Management (IAM) refers to the processes, technologies and

policies for managing users’ digital identities and controlling their use to access enterprise resources.

Securing taxpayer data and systems. Funding security operations and management includes those activities needed to

secure taxpayer data and the systems that handle or store that data through full visibility of hardware and software on

the network, as well as enhance incident response and detection of internal threats to data and systems.

Supporting Projects

Provide system engineering management capabilities, including systems strategy, architecture, and engineering

capabilities, across IT Infrastructure, Business Applications, Data Management, and IT Security.  Provide portfolio

control and management processes and tools, including governance, enterprise lifecycle support, tiered program

management, and configuration/change management.

Provide shared infrastructure that leverages reusable engineering design patterns and best practices for standardized,

virtual, and secure environments.  These environments allow multiple BSM projects to develop, test, deploy, operate,

and monitor in a common approach.  

Modernized IRS Operations

Automating repetitive, rule‐based, manual tasks and mitigating human error risks.   Robotic Process Automation (RPA)

has emerged as an effective enabling technology to gain efficiencies by doing just this. Combining RPA with Artificial

Intelligence (AI) has further enhanced opportunities to empower organizations to take on more complex processes and

gain value through cognitive automation. The goal of the RPA program is to build the capability (i.e.; technology,

people, and processes) for IRS to take advantage of these emerging technologies.  IRS business units are highly

motivated to find operational efficiencies to improve services and automate workflow for a wide range of taxpayers to

significantly relieve administrative burden.  Funding this effort will ensure that a series of initial limited use projects

and activities will provide additional functionality and efficiency gains.

Leveraging cloud technologies to provide value and improved service to taxpayers. The IRS has adopted a cloud strategy,

which aligns to the Federal strategy, and will migrate various workloads to the cloud as appropriate.  Because the IRS

can securely host tax applications in the cloud, even for major efforts like Enterprise Case Management, funding this set

of capabilities will be critical to stabilizing the cost of operations and maintenance and further enhancing the agency’s

security posture.

Providing a more efficient, scalable and flexible architecture.    Funding will ensure the implementation of advanced IT

infrastructure tools and technologies for compute, network and storage activities. The combination of these capabilities

will help further automate and modernize the technology infrastructure and convert legacy code to modern

programming languages.

APIs are a set of protocols, routines, functions and/or commands that programmers use to develop software or

facilitate interaction between distinct systems. In response to growing demands to integrate systems internally and

externally, the IRS plans to expand the use of APIs across its ecosystem.
IRS ‐ 100

C – Changes in Performance Measures

Performance Measure or Indicator Proposed Change and Justification 

1. Rentable Square Feet per Person (RSFPP) – 

modify 

In previous budget submissions this measure was 

reported as an indicator with no target. IRS collected 

sufficient longitudinal data to set targets for this measure. 

RSFPP will be reported as a measure in the FY 2022 CJ. 
IRS ‐ 101

Section III – Supplemental Information 

3.1 – Summary of Capital Investments

I. Introduction 

The IRS Information Technology (IT) organization enables the business operations and 

modernization of the nationʼs tax system. IT continues to provide the critical support 

needed as the IRS faces an ever-changing and complex tax administration environment. 

The IRS embraced the opportunity for change this year, significantly enhanced 

cybersecurity defenses, and delivered on modernization commitments. The IRS achieved 

its core mission while responding and adjusting to the needs of taxpayers and IRS 

employees facing the COVID-19 pandemic, which included extending the tax filing 

season, rapidly implementing economic impact payments and tax changes, and 

enabling a remote workforce. Simultaneously, the IRS implemented provisions of the 

Taxpayer First Act (TFA), which will significant improvements in the way the agency 

serves taxpayers, while continuing to enforce the tax laws in a fair and impartial manner. 

For IRS IT specifically, TFA implementation included developing a multi-year strategic 

plan (IT Strategic Plan), securing an independent validation and verification of major 

program plans, and implementing other provisions. The IRS IT Annual Key Insights 

Report summarizes major accomplishments delivered each year, as well as progress in 

meeting key performance measures associated with the eight goals of the IRS IT 

Strategic Plan. 

Given that approximately 96 percent of the gross receipts of the United States are 

processed through the IRS, the success of our country depends, in significant part, upon 

the continued success of IRS IT. The IRS Strategic Plan 2018-2022, the IT Strategic Plan, 

Enterprise Technology Blueprint, and IRS Integrated Modernization Business Plan set a 

foundation to articulate a vision for a 21st century IRS IT environment leveraging modern 

technologies and adopting IT best practices. The American Rescue Plan (ARP) Act of 

2021 provided $1.0 billion for IT modernization efforts reshape which will allow the IRS 

to modernize its technology landscape and improve cybersecurity across the IRS IT 

infrastructure. The Capital Investment Strategy outlines and expands the technology 

initiatives and IT investments to achieve this vision. The American Rescue Plan Act and 

Modernization section provides an overview of modernization enabled through the ARP. 

IV. The Enterprise Technology Blueprint section covers each of the existing 

Modernization Plan technology initiatives and IT investments. The Modernization 

Initiatives Alignment to IT Strategic Plan section presents how the initiatives and 

investments align to the IT Strategic Plan goals. 
IRS ‐ 102

II. IT Strategic Plan 

As part of TFA, the IRS developed and is implementing a multi-year IT strategic plan that 

strengthens the agencyʼs ability to communicate and plan for long-term technology 

needs. The Plan to articulates the goals and objectives to achieve the IRS technology 

target state and deliver value to taxpayers. This plan is structured to address key factors 

driving the opportunity for change, including the need to meet the publicʼs 

expectations, simplify the existing IRS technology base, adopt emerging technology 

trends, stay ahead of cybersecurity threats, comply with federal mandates and 

guidelines, and support the workforce with the advanced technology training needed to 

stay current in their skills. The implementation of these goals and objectives is captured 

through the Annual Key Insights Report (AKIR) and the integrated enterprise 

architecture, which includes the Enterprise Technology Blueprint (ETB) and the Target 

Enterprise Architecture (TEA). Figure 2 summarizes ITʼs strategic goals for FY 2020–2024. 

Figure 2 - IT Strategic Goals FY 2020-2024 

The IT Strategic goals set the enterprise-wide technological priorities, which then inform 

the long-term technological vision published in the Enterprise Technology Blueprint. 

III. Enterprise Technology Blueprint (ETB) 

The Enterprise Technology Blueprint articulates the envisioned long-range technology 

environment and describes how technology will be employed in support of the strategic 

IRS business direction. The ETB depicts the adoption of advancing capabilities, 

modernizing applications and technical services within the IRS production environment. 
IRS ‐ 103

The ETB is organized around the interrelated elements of the IRS Enterprise Architecture 

framework, as shown in Figure 3, to provide a cross-cutting frame of reference for 

analyzing the current state of IRS operations and to envision a future state. It is intended 

to facilitate dialogue among IRS business and IT leaders around future vision and 

priorities, align business and IT strategies, guide enterprise architecture planning and 

solutions development, and enable line of sight for evaluating investment proposals. 

The ETB also encompasses a set of interrelated views that depict the future of tax 

systems, IT operations, and IT services to achieve the IRS vision. The ETB is a living 

document that is continuously reviewed and updated as appropriate. 

Figure 3 IRS Enterprise Architecture Framework

In combination with the IRS and IT Strategic Plans, the ETB captures the enterprise vision 

for the IRS technology environment. The IRS Integrated Modernization Business Plan, 

described in Section VI, highlights specific technology initiatives and IT investments that 

realize this vision. 

IV. American Rescue Plan Act and Modernization 

Funding provided in the American Rescue Plan (ARP) Act P.L. signed into law on March 

11, 2021 will allow the IRS to accelerate the current IRS modernization plan, transform 

foundational IRS technology to allow future innovation, and make meaningful 

improvements in taxpayer service and compliance. FY 2022 funding will support 

modernization progress across the following areas: 

• Taxpayer / Customer Experience: Enhances the taxpayer experience through 

modern platforms and capabilities aligned with the TFA Taxpayer Experience 

Strategy; expands availability for the Tax Pro portal; improves the customer 

experience for employees who support tax administration; accelerates access for: 
IRS ‐ 104

multilingual taxpayers to IRS information/data, Enterprise Case Management 

(ECM), and Digitization efforts. 

• Infrastructure: Accelerates IRS ability to leverage off-premise capabilities and 

efficiencies in the cloud; establishes off-premise infrastructure to house modern 

applications. 

• Security: Accelerates Cyber Security modernization efforts; accelerates Secure 

Access Digital Identity (SADI) expansion across all taxpayer facing applications. 

• Data: Establishes new data platform to enable data analytics and data driven 

decisions across IRS for Services, Enforcement and Operations efforts; enables 

use of CADE2 data to provide near real-time access to modernized individual 

account data; expands use of intelligent automation (robotics, AI, and machine 

learning) to improve tax administration. 

• Legacy Systems Modernization: Accelerates IRS technology footprint reduction 

through retirement, consolidation, and refactoring of legacy applications; 

implements IMF retirement portfolio; provides for architecture and engineering 

support for the broader portfolio. 

The ARP Modernization surge will accelerate existing work and longer-term 

modernization work. IT will continue to be fully transparent and communicate the 

investment impacts to enhance tax administration, improve operations, and positively 

contribute to the agencyʼs long-term success. 

V. IRS Integrated Modernization Business Plan

The IRS has made significant progress on its IRS Integrated Modernization Business 

Plan. The plan was developed with a phased implementation approach that 

acknowledged the need to adjust based on emerging priorities, technology advances, 

legislation, and evolving customer expectations. the FY 2021 IRS IT Annual Key Insights 

Report (AKIR) will provide updates on how the annual funding and the $1 billion 

provided in the ARP interact with the IRS technology modernization portfolio. 

Executing the IRS Integrated Modernization Business Plan strategic direction enables the 

IRS to continue to meet federal and agency mandates, while further reducing reliance 

on legacy systems and aged technology that put the broader IT infrastructure at risk. 

The IRS has made considerable progress in the initial years of the plan, delivering 19 

modernized capabilities in FY 2019, 40 capabilities in FY 2020 and on track to deliver 31 

capabilities in FY 2021. The FY 2020 AKIR (Publication 5453, Information Technology 

(IT) Annual Key Insight Report) published on April 1, 2021 summarizes the progress 

delivered by the modernization plan program and initiatives. 
IRS ‐ 105

MODERNIZATIO

N PILLAR

KEY OBJECTIVES KEY 

PROGRAMS & 

INITIATIVES

Taxpayer 

Experience: 

Deliver a service 

experience 

comparable to 

private industry

• Help taxpayers resolve issues quickly and

efficiently

• Empower taxpayers with information 

about their account, obligations, and 

payment options

• Make services available to customers 

when they need them

• Protect taxpayer information and data

• WebApps (Web Applications)

• Taxpayer Digital Communications

Outbound Notifications (TDC—

ON) 

• Live Assistance

Core Taxpayer 

Services & 

Enforcement: 

Streamline 

and integrate 

IT programs 

that enable 

top- quality 

service

• Integrate tax processing systems to 

increase the cost effectiveness of 

operations

• Enable real-time processing and 

increase transparency of returns 

status

• Increase data usability and the use of 

data analytics to combat fraud

• Customer Account Data Engine 

(CADE) 2 Transition State 2 (TS2)

• CADE 2 Target State

• Enterprise Case Management (ECM)

• Information Returns Processing

Modernized 

IRS 

Operations: 

Retire and 

decommission 

legacy 

systems in 

place of more 

sustainable 

infrastructure

• Reduce complexity of the 

technical environment

• Leverage data to deliver secure, agile, and

efficient applications and services

• Strengthen organizational agility 

through automation and 

streamlining processes

• Robotics Process Automation (RPA)

• Application Programming 

Interface

(API) Management

• Cloud Execution

• Next Generation Infrastructure

• Data Digitization

• Universal Data Hub / Analytics 

Tools/Platform 

Cybersecurit

y & Data 

Protection:

Continue to 

protect taxpayer 

data and 

address 

emerging 

threats

• Establish trusted and streamlined 

access to information through 

identity and access management 

technologies

• Proactively identify emerging threats 

and vulnerabilities using real-time 

intelligence information and 

analytics

• Protect taxpayer data and systems via

end-to-end visibility and common 

platforms

• Vulnerability & Threat 

Management

• Identity & Access Management

(IAM)

• Security Operations & 

Management

Figure 4 – IRS Modernization Portfolio and Pillars 
IRS ‐ 106

A. Taxpayer Experience

• Web Applications (Web Apps): The Web Apps program and initiatives 

improve interactions and communications with taxpayers, the IRS, and third 

parties by providing a broad range of self-service options, establishing secure 

information exchange, and building internal capabilities. By enabling 

authorized third parties and taxpayers to interact digitally with the IRS, the 

investment provides a better user experience and delivers consistent data and 

services through reusable Application Programming Interfaces (APIs). Web 

Apps will continue to transform the way the IRS does business by enhancing 

the taxpayer experience and delivering new digital services that allow 

taxpayers expanded capabilities in FY2022. Taxpayers will be able to update 

contact information (address and phone number) through online account, 

ensuring their information is up to date. In addition, taxpayers will be able to 

make tax payments within online account without re-authentication or leaving 

the online account experience, thus improving revenue collection, and 

promoting voluntary compliance. Additional features will allow taxpayers to 

schedule/modify scheduled payments and store bank information. As part of 

the Tax Pro effort, authorized tax professionals will benefit from the 

capabilities that modernize certain paper-based processes to help resolve 

issues with the IRS on behalf of their clients. These include the ability to 

manage new and pending authorization requests, view/print confirmation of 

submission and expiration of out-of-date authorizations, and, in future 

release, view/manage all existing authorizations. The taxpayer will be able to 

initiate Power of Attorney and Taxpayer Information Authorization forms in 

future release of Tax Pro. These capabilities will reduce the amount of paper 

forms, reduce taxpayer and tax professional burden, and reduce the time it 

takes to submit authorizations. Increased data accuracy and security will 

ensure the entire process is secure in confirming and protecting identity. The 

Modernized Installment Agreement capabilities will also expand, enabling 

taxpayers to establish long-term payment plans in Online Account. 

• Taxpayer Digital Communications Outbound Notifications (TDC-ON):

TDC-ON provides taxpayers access to fast, secure, and personalized digital 

communications delivered through a secure messaging platform. The IRS will 

continue to develop more digital notices, anticipating that 50 percent of all 

outbound notice volume will be digitalized by the end of FY 2022. Taxpayers 

will be able to opt in or opt out of receiving paper notices and receive 

notifications through email and SMS when a notice is available. TDC-ON will 

allow the IRS to move away from paper-based notifications and allow 

taxpayers to navigate directly to IRS online payment tools, increasing the 
IRS ‐ 107

likelihood of taxpayer action and expediting the resolution of tax-related 

issues. 

• Live Assistance: IRS is engaged in several projects to enhance the experience 

for taxpayers who call IRS for live assistance, including expanding customer 

call-back, redesigned customer voice portal, and improved identity 

verification. Future live assistance enhancements will broaden service channels 

to include live text chat, virtual assistant capabilities, and video chat 

assistance. In FY 2020, the IRS finished its second successful year of offering 

Customer Callback (CCB) service. The IRS expanded CCB from one application 

to five toll-free applications and offered CCB service to 1.22 million taxpayers. 

Of these, nearly 835,000 callers accepted the CCB option, representing a 68 

percent acceptance (take rate), about 10 percentage points above industry 

averages. In total, CCB achieved a success rate of nearly 90 percent and saved 

taxpayers 486,000 hours of live hold time by allowing them to leave a callback 

number, disconnect, and await their reconnect call with an available phone 

agent. In FY 2021 IT has already expanded CCB to a total of 16 applications 

including 2 Spanish language lines. For FY 2022, IRS plans to initiate work to 

create a “Digital Customer Service” model via a "multi-channel" platform that 

provides real-time assistance to taxpayers via their choice of channel. Agent 

Desktop Modernization offers numerous benefits including the ability 

improve agent efficiency by making taxpayer knowledge easier to find, and 

the flexibility of product makes it configurable, to provide a platform that 

brings together voice, chat, secure messaging, and virtual assistance via a 

digital agent. 

B. Core Taxpayer Services and Enforcement

• CADE 2 Transition State (TS2): The Customer Account Data Engine 2 (CADE 

2) Program will modernize the taxpayer account processing environment and 

develop an integrated, near real-time processing environment to support tax 

returns, information returns, payments, and other transactions. Key TS2 

accomplishments include: 

o Implementation of common code across IRS systems to enable 

consistent and accurate Penalty and Interest calculations on financial 

statements 

o Deployment of database conversion capability allowing IRS to retain 

expanded taxpayer history for approximately two billion taxpayer 

records, improving service and enhancing compliance 

The Individual Tax Processing Engine (ITPE) project is a critical TS2 project 

which will convert approximately 200,000 lines of legacy assembly language 
IRS ‐ 108

code to modern software language. This code conversion is a major milestone 

towards retiring the Individual Master File (IMF). In FY 2022, the program will 

continue execution of the ITPE project, with a planned development end date 

of April 2023. 

• CADE 2 Target State: CADE 2 Target State will provide state-of-the-art 

individual taxpayer account processing and data-centric technologies for 

maintaining and balancing individual taxpayer account data to reduce 

operations & maintenance costs, improve taxpayer service quality, enhance 

responsiveness to legislative changes, and eliminate financial weaknesses. The 

program will allow the IRS to retire the most complex portion of the Individual 

Master File (IMF), a step towards fully retiring the IMF. The CADE 2 Target 

State stand up and planning will address future capabilities that will allow 

direct visibility and access to taxpayer account detail on a near real-time basis 

and furthers the overarching effort to retire the IMF. Achieving these main 

goals of the CADE 2 program will result in enhancements to taxpayer 

experience by providing accelerated account info updates in near-real time, 

streamlined customer service operations by distributing data to downstream 

systems for accelerated issue resolution. CADE 2 Target State also aids in 

stabilizing the IRSʼs legacy footprint and realizing enterprise priorities for 

legacy code conversion. The first two releases will primarily cover four 

capabilities: 

1. Support Financial Reconciliation reports to confirm CADE 2 data is in 

balance within accounting cycles 

2. Provide taxpayer account data to downstream account management 

systems from the CADE 2 database 

3. Development of specialized individual taxpayer reports and data feeds for 

refunds, transcripts, notices, and feeds to other federal agencies 

4. Establish an analytical data store of individual tax data for analytics 

platforms that support enterprise-wide data access strategy 

• Enterprise Case Management (ECM): ECM provides the IRS with an 

enterprise solution for streamlining case and workload management 

processes to improve the quality and effectiveness of case interactions with 

individual taxpayers, small and large businesses, tax-exempt organizations, 

and a wide spectrum of intermediaries. ECM will digitize case information, 

provide business automation, and increase resource alignment across IRS 

business units to improve customer service and reduce the timeframe for case 

resolution. In FY 2020, ECM Release 1 delivered the foundational platform and 
IRS ‐ 109

capabilities of a new cloud-based case management solution. Subsequent 

ECM releases in FY 2021 and beyond will provide integrated case 

management to a widening circle of business units across the IRS. In FY 2022, 

ECM will include the data integration with individual taxpayer account data 

needed for the Small Business/Self Employed, Appeals, and Counsel – Offer in 

Compromise and Office of Professional Responsibility business processes. 

These capabilities will enable the program to scale and migrate additional 

business processes concurrently in the Release 4 timeframe. 

• Information Returns System Processing (IRSP): IRSP consists of a modern 

intake database and applications that allow for improved document matching 

to improve intake consistency. This initiative provides capabilities that will 

enable a modernized solution for acceptance, validation, perfection, 

management, and use of Information Returns (IR) data. IRSP will also enhance 

compliance processing by providing modern data distribution of IR data. The 

scope of IRSP includes evaluating the impact of IR modernization across 

multiple business processes (corporate data, submission, corporate 

processing, compliance, etc.), coordinating the IR business processes across 

intake, validation, posting, assimilation and data sharing, performing 

modernization of legacy systems that perform functions across the IR 

workflow, and designing and developing a scalable solution and modernized 

intake platform to accommodate all IR form types. IR Modernization has been 

broken into four main phases, the first of which addresses Taxpayer First Act 

(TFA) Provision 2102 mandates to develop an internet portal for 1099 

Information Returns. Phases 2-4 include modernization of extension and 

waivers, conversion of all IR compliance programs into a modern platform, 

and modern reporting and analytical capabilities, respectively. The IRSP target 

architecture transitions and replaces legacy systems to modern, adaptive, and 

sustainable technologies to reduce operations and maintenance (O&M), 

provides increased architecture flexibility and elasticity to support growing IR 

volumes, types, and emerging business requirements, and increases 

availability, reliability, and distribution of IR data to support enhanced 

compliance and security processes. 
IRS ‐ 110

C. Modernized IRS Operations

• Robotics Process Automation (RPA): Robotic Process Automations (RPA) 

will enhance business process execution, efficiency, speed, and accuracy by 

automating repeatable manual tasks, allowing IRS employees to focus on 

higher value-added work and decreasing business cost. To prove the benefits 

of implementing automations within the IRS, a focus group of six manual 

processes across four business areas were selected for automation. These 

target automation efforts produced an average efficiency improvement of 77 

percent over the manual processes, with one automation providing an 

improvement of 92 percent. During FY 2022 funding will be used to create 

enterprise RPA platform and automation development approach that can 

scale to meet the growing IRS automation demand and leverage intelligent 

automation technologies like artificial intelligence and machine learning for 

the future. 

• Data Digitization: Data Digitization is the process of converting analog 

information into a machine-readable digital format that can be stored digitally 

through traditional scanning processes, transcription, or other technology, 

and can be processed by a computer to be easily shared and accessed. The 

IRS achieved significant operational efficiencies by digitizing paper processes 

and increasing access to electronic data to support advanced analytics. This 

effort will implement new technology to scan and store incoming paper forms 

and correspondence in an electronic format, as well as modify the paper 

processing pipeline and retire additional legacy systems. IRS seeks a 

coordinated approach to scan paper, convert it to OCR content, apply 

standardized metadata, and integrate the digital result with records and 

content management systems so that content is systematically maintained 

and easily retrieved. Data Digitization will modernize and integrate 

technologies and systems that support secure, flexible, and accurate work 

across IRS functions and promote operational efficiencies and coordination 

across business units. Data Digitization promotes centralized scanning and 

data extraction across all business units to reduce operational complexity, 

streamlines business processes and enhances portfolio rationalization by 

adopting existing systems to process both paper and electronic forms, and 

strengthens data intake capabilities to enable the validation, storage, 

protection, and sharing of data. 
IRS ‐ 111

• Application Programming Interface (API) Implementation: API 

Implementation incorporates efforts to drive internal and external API 

deployment. APIs allow data exchange through services via standard, reusable 

common programming code, allowing software developers to design 

applications that interact with one another and expose back-end 

data/systems in a uniform and consistent way. The implementation of 

capabilities will provide: 

o Physical environments for deploying new APIs that support IRS 

business operations and stakeholders who rely on IRS data 

o An environment where authorized parties have easier access to IRS 

data and streamlines the data exchange, which places the IRS in a 

better position to serve clients and helps ensure the most efficient use 

of common services 

o An environment where customers can have secure access to taxpayer 

data 

o A governance and life cycle management framework for the design, 

development, test, deployment, and maintenance of APIs 

API implementation has developed the API Initial Operating Capability and 

deployed three APIs on the Enterprise Systems Access Management (ESAM) 

platform for automated registration. In the future, API Implementation will 

continue to enable Enterprise API Deployment and Management through 

tools and deployment of services for both producers and consumers of APIs 

as well as a consistent approach for API development, utilization, as well as 

management through imbedded system automation. 

• Universal Data Hub / Analytics Tools / Platform (UDH): UDH consists of a 

modernized infrastructure providing universal data access under a unified 

technology platform. This effort is instrumental to delivering on IRSʼ Strategic 

Goal of using facts and data to inform decision-making and provide more 

robust access to data. This program will streamline data availability and allow 

for more data-driven business decisions. UDH will also support foundational 

architecture and technology elements that enable business capabilities like 

real-time processing, error correction, expanded online tools and data 

analytics capabilities, improved fraud detection, and other anomaly detection 

capabilities. UDH provides universal access to tax data, 3rd party metadata 

and other data in formats most suitable for operational use and analytical 

consumption. While UDH will provide analytics tools and service, the true 

value lies in establishing a data pipeline to provide data to Business and IT 
IRS ‐ 112

users in a seamless and expedited fashion and make data more readily 

available for analytics and operational use. 

• Cloud Execution: The Enterprise Cloud program will adopt cloud 

technologies to enable the delivery of secure, agile, and efficient service 

offerings to the enterprise and the taxpayer. The IRS Cloud Target State calls 

for achieving a hybrid, multi-cloud ecosystem with multiple Cloud Service 

Providers (CSPs), service models, and deployment models. The program has 

developed a Cloud Roadmap which is a three-year plan/view of activities to 

progress towards the IRS Cloud Target State. To mature the ecosystem, it 

completed NetHub AWS GovCloud (IRSʼs cloud of choice for FY 2021) Release 

1 providing access to AWS GovCloud for cloud consumers and built a 

Continuous Integration/Continuous Development pipeline that will deploy 

containerized applications to AWS GovCloud environments and support cloud 

migrations. An application modernization approach was developed to identify 

and determine future cloud migrations and migration paths. The program has 

also developed a framework to assess impacted workforce and identify 

training needs for cloud consumers and cloud foundational capabilities 

identified in the Cloud Roadmap. Future plans include maturing the cloud 

ecosystem, introducing new or improve existing capabilities to accelerate app 

migration, enhancing cyber security resilience, and streamline provisioning of 

cloud services. 

• Next Generation Infrastructure: Next Generation Infrastructure provides a 

more efficient, scalable, and flexible architecture by implementing advanced IT 

infrastructure tools and technologies for compute, network, and storage 

activities. The combination of these capabilities will help further automate and 

modernize the technology infrastructure and convert legacy code to modern 

programming languages. 

D. Cybersecurity and Data Protection

• Vulnerability and Threat Management (VTM): VTM enhances the ability to 

secure taxpayer data and systems through full visibility of hardware and 

software on the network and enhances incident response and detection of 

internal threats to data and systems yielding increased vigilance and proactive 

monitoring of overall risk. VTM provided an Initial Operating Capability (IOC) 

for the Enhanced Security Testing (EST) and Process automation to deliver 

enhanced security testing throughout the system development lifecycle which 

is expected to achieve over 80 percent code vulnerability reduction and over 

85 percent review time reduction during FY 2021 filing season. VTM delivered 

IOC capabilities for analytics tools which will leverage machine learning to 
IRS ‐ 113

proactively identify and respond to emerging insider threats and fraudulent 

behavior. VTM will continue to enhance security testing capabilities, with 

specific emphasis on detecting insider threats and fraudulent activity. It will 

also embed and integrate security into the system development lifecycle, so 

security concerns are identified and addressed prior to system deployment, 

and will continue to aggregate collected data from a diverse set of security 

tools, analyze and query the data, and provide overall situational awareness 

by establishing a dashboard that helps identify cybersecurity risks and enables 

rapid remediation. 

• Identity and Access Management (IAM): IAM includes development of a 

common platform for secure authorization and authentication services to 

protect sensitive data at rest and in transit through discrete encryption 

capabilities. Leveraging the common platform in the organizationʼs 

operational architecture as well as its cloud migration plan, the IAM program 

successfully provided initial operating capability. As a result, 

prevention/mitigation of malicious or unintended access and disclosure of 

taxpayer and other sensitive data was achieved. Through continued 

modernization and phased maturation of common platform capabilities, as 

well as process improvement efforts, the IAM program will deliver final 

operating capability. The program is responsive and agile, adapting to 

changing requirements of the operational environment throughout its 

implementation. The program is currently on track to support the intended 

end-state solution for data protection at rest and in transit. A fully functional 

IAM capability allows the organization to understand who is on the network 

and is conducive to supporting the Privileged Access Management (PAM) 

function for automated provisioning/deprovisioning of access to devices on 

the network. 

• Security Operations and Management (SOM): SOM provides enhanced 

capability to secure taxpayer data and systems through full visibility of 

hardware and software on the network and improve incident response and 

detection of internal threats to data systems. The organizational requirement 

for effective and efficient security within systems spans across multiple 

environments. SOM establishes security standards, services, and tools 

appropriate and adaptable to an evolving technology landscape. Integration 

of security processes into service designs, operational lifecycles, and everyday 

business practices ensures delivery of systems and technology with inherent 

security-minded characteristics and features. SOM is an iterative and 

continuous business best practice focused on security measures throughout 

the enterprise and development lifecycle. Integrating security throughout the 
IRS ‐ 114

delivery lifecycle requires phased testing at all stages of technological 

development, collaboration between teams to define and support secure 

approaches, and the proactive embedding of cybersecurity within new 

technologies prior to entering production. This capability is on track to deliver 

the desired end state of end-to-end visibility and common platforms. In 

concert with IAM and VTM, SOM facilitates a stronger security posture for the 

agency through technological advancement and process modernization. SOM 

provides IRS security practitioners the information needed to stay ahead of 

the curve, and to proactively build-in the system capacity for responsiveness 

and resilience against known, unknown, or unanticipated threats. 
IRS ‐ 115

VI. Modernization Initiatives Alignment to IT Strategic Plan

3.2 – Return on Investment (ROI) for IRS Major Enforcement Programs

The actual cost and actual revenue collected for FY 2016 through FY 2020 for the three 

major enforcement programs, Examination, Collection, and Automated Underreporter 

(AUR) are provided below. The activities included in these programs include: 

Examination Program conducts examinations of tax returns of individual taxpayers, 

businesses, and other types of organizations to verify that the tax reported is correct. 

This includes examinations of individuals, small businesses, self-employed, large 

corporate businesses, partnerships, international, estate and gift, excise tax and 

employment tax-exempt organizations, qualified pension benefit plans, and government 

entities. The examination costs include the cost of the Field Exam, Correspondence 

Exam, IRS Chief Counsel, and Appeals functions. 

Collection Program collects delinquent taxes and secures delinquent tax returns 

through the appropriate use of enforcement tools, such as lien, levy, seizure of assets, 
IRS ‐ 116

installment agreement, offer-in-compromise, substitute-for-return, summons, and IRC 

section 6020(b) (which allows the IRS to prepare returns if a taxpayer neglects or refuses 

to file), and provides education to taxpayers to enable future compliance. The cost of 

the Collection program includes Automated Collection System (ACS), Field Collection, 

and Payment Compliance/Correspondence Collection. 

Automated Underreporter (AUR) Program matches payer information returns (Forms 

1099, W-2, etc.) against data reported to the IRS on individual tax returns. The 

information is verified to identify any discrepancies. If a discrepancy is found, the case is 

given to a tax examiner for research and analysis. If the tax examiner is unable to resolve 

the discrepancy, the IRS issues a proposed notice and generates a proposed assessment. 

ROI is calculated by dividing revenue by cost. This information provides an indication of 

the ROI for the three major enforcement programs over time. Enforcement revenue 

collected in a fiscal year includes tax, interest, and penalties from multiple tax years. 

Some enforcement activities take more than a year to close and may generate revenue 

over several years. 

In addition, these data reflect the average return on investment for these programs and 

do not include the indirect effects of IRS enforcement activities on voluntary 

compliance. Net revenue is maximized only when resources are allocated according to 

marginal direct and indirect return on investment, but those ratios are much more 

challenging to estimate than the average ROI. As a result, the IRS will continue to 

allocate enforcement resources across a range of enforcement activities to ensure 

taxpayers pay the taxes they owe. 

 

 

Return on Investment for IRS Major Enforcement Programs

Dollars in Millions

Enforcement Program Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI

IRS Total $5,592 $54,291 9.7 $5,506 $56,914 10.3 $5,559 $59,366 10.7 $5,418 $57,523 10.6 $6,542 $51,085 7.8

Examination 3,782 12,023 3.2 3,693 15,102 4.1 3,716 15,017 4.0 3,568 10,877 3.0 4,764 8,253 1.7

Collection 1,576 37,259 23.6 1,600 36,498 22.8 1,635 38,985 23.8 1,625 41,793 25.7 1,588 38,948 24.5

Automated Underreporter 

(AUR) 234 5,009 21.4 214 5,314 24.9 208 5,364 25.7 225 4,853 21.6 190 3,884 20.4

1

The cost of the enforcement programs was calculated using budget data from the IRS Integrated Financial System (IFS) and includes direct dollars and FTE from the 

Enforcement appropriation, Exam and Collections budget activity, and dollars from the Operations Support appropriation prorated using actual FTE realized for each major 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
IRS ‐ 117

3.3 – IRS Performance Measures Table 

 

Performance Measures FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2020 Target FY2021 Target FY2022 Target

Customer Service Representative Level of Service (LOS)1 53.4% 77.1% 75.9% 65.4% 53.1% 60.0% 32.0% 75.0%

Customer Accuracy - Tax Law (Phones) 96.4% 96.7% 95.5% 91.6% 91.0% 92.0% 90.0% 90.0%

Customer Accuracy - Accounts (Phones) 96.1% 96.0% 96.1% 94.3% 93.5% 94.0% 91.0% 91.0%

Timeliness of Critical Filing Season Tax Products to the Public2 92.5% 93.1% 59.6% 92.6% 78.4% 89.0% 85.0% 89.0%

Timeliness of Critical TE/GE & Business Tax Products to the Public2 98.0% 96.7% 100.0% 96.1% 96.0% 89.0% 85.0% 89.0%

Percent of Business Returns Processed Electronically3a 50.0% 52.9% 55.6% 57.8% 67.4% 60.0% Discontinued Discontinued

Enterprise Self-Assistance Participation Rate4 89.0% 79.0% 82.0% 85.4% 90.6% 82.0% 89.0% 89.0%

Taxpayers Satisfied with the IRS (based on 100 point scale)5 74 74 74 73 74 Indicator Indicator Indicator

Examination Coverage - Individual3b 0.7% 0.6% 0.6% 0.45% 0.29% 0.48% Discontinue Discontinue

Examination Coverage - Business (Assets > $10 million)3b 3.0% 2.5% 2.2% 1.6% 1.3% 1.7% Discontinue Discontinue

Examination Efficiency - Individual 143 121 131 109 76 115 111 117

Automated Underreporter Coverage3a 2.3% 2.2% 2.0% 1.3% 0.6% 1.7% Discontinued Discontinued

Time to Start Compliance Resolution6 58.8% 60.1% 60.9% 66.3% Indicator Indicator Indicator

Time to Resolve Compliance Issue After Filing6 491 494 469 491 Indicator Indicator Indicator

Repeat Non-Compliance Rate6 29.2% 30% 31.4% 35.6% Indicator Indicator Indicator

Collection Coverage (Units) 43.4% 42.2% 41.6% 41.3% 34.9% 39.7% 33.0% 33.0%

Cost to Collect $100 $0.35 $0.34 $0.34 $0.33 $0.35 Indicator Indicator Indicator

Criminal Investigations Completed 3,721 3,089 3,051 2,797 2,624 2,700 2,600 2,600

Conviction Rate 92.1% 91.5% 91.7% 91.2% 90.4% 92.0% 92.0% 92.0%

Rentable Square Feet per Person 297 301 298 278 298 280 270 

Percent of Aged Hardware7 52.2% 52.3% 45.5% 31.0% 16.0% 30.0% 20.0% 20.0%

Percent of Major IT Investments within +/- 10% Cost Variance at the 

Investment Level 76.2% 50.0% 72.2% 88.9% 84.2% 90.0% 90.0% 90.0%

Percent of Major IT Investments within +/- 10% Schedule Variance 

at the Investment Level 85.7% 88.9% 83.3% 88.9% 94.7% 90.0% 90.0% 90.0%

2 Modified in FY 2019.

5

 Based on the American Customer Satisfaction Index (ACSI) survey; the All Individual Tax Filer score is calculated from separate ACSI Individual Paper Filer and Electronic Filer customer satisfaction index scores; available on an 

annual basis at the end of January and computed on a 100-point scale. 

IRS Performance Measures

1 These telephone phone lines service 78% of all telephone traffic. The FY20 Enterprise LOS is 51.2% . The Enterprise LOS measures the relative success rate of taxpayers calling to speak with an IRS Assistor on any IRS toll-free 

line—not just those answered by Accounts Management CSRs. 

4 Starting in FY 2017, the IRS modified the Taxpayer Self Assistance Rate measure (renamed to Enterprise Self Assistance participation Rate) to include additional self-service channels including Get Transcript and payment 

applications such as Direct Pay and Online Payment Agreements. As new self-assistance applications are provided to the public, they will be added to the methodology.

7 The measure definition changed in FY18; removing certain asset categories (fax machines, low-end printers and scanners) that are no longer being actively refreshed from the calculation to more accurately define the inventory that’s 

reflective of risk to the IT environment.

6 New measure added for FY20; historical data provided for comparative purposes.

3 a. Discontinued in FY 2020; b. Requested discontinuing measure for FY 2021 budget reporting; new measures under development for FY 2021. 
IRS ‐ 118

 

Customer Service Representative (CSR) 

Level of Service

The number of toll-free callers that either speak to a Customer Service Representative or receive informational 

messages divided by the total number of attempted calls.

Customer Accuracy - Tax Law Phones The percentage of correct answers given by a live assistor on Toll-free tax law inquiries.

Customer Accuracy - Accounts (Phones) The percentage of correct answers given by a live assistor on Toll-free account inquiries.

Timeliness of Critical Individual Filing Season 

Tax Products to the Public

The percentage of Critical Individual Filing Season (CIFS) tax products available to the public seven calendar 

days before the official IRS start of the (individual) filing season. CIFS tax products are those tax forms, 

schedules, instructions, and publications required by large number of filers to prepare a complete and 

Timeliness of Critical TE/GE & Business Tax 

Products to the Public

The percentage of Critical Tax Exempt/Government Entities (TE/GE) and Business (CTB) tax products available 

to the public seven calendar days before the official IRS start of the individual filing season. CTB tax products 

are forms, schedules, instructions, and publications used by large number of TE/GE and Business filers to 

prepare a complete and reasonably accurate return or form by the filing date occurring during the fiscal year 

(e.g., income tax, excise tax, exempt organization return, etc.).

Percent of Business Returns Processed 

Electronically The percentage of electronically filed business tax returns divided by the total business returns filed.

Enterprise Self Assistance Participation Rate The percentage of taxpayer assistance requests resolved using self-assisted automated services.

Taxpayers Satisfied with the IRS (based on a 

100-point scale)

The percentage of taxpayers satisfied with the IRS according to the American Customer Satisfaction Index 

(ACSI) survey. The All Individual Tax Filer score is calculated from separate ACSI Individual Paper Filer and 

Electronic Filer Customer Satisfaction Index Scores. Based on a 100-point scale.

Examination Coverage - Individual

The sum of all individual 1040 returns closed by Small Business/Self Employed (SB/SE), Wage & Investment 

(W&I), Tax Exempt and Government Entities (TE/GE), and Large Business and International (LB&I) (Field Exam 

and Correspondence Exam programs) divided by the total individual return filings for the prior calendar year.

Examination Coverage – Business Assets 

>$10 Million)

The number of LB&I returns (C and S Corporations with assets over $10 million and all partnerships) examined 

and closed by LB&I during the current fiscal year divided by the number of filings for the preceding calendar 

year.

Examination Efficiency – Individual (1040)

The sum of all individual 1040 returns closed by SB/SE, W&I, TE/GE, and LB&I (Field Exam and 

Correspondence Exam programs) divided by the total Full-Time Equivalent (FTE) expended in relation to those 

individual returns.

Automated Underreporter (AUR) Coverage A percentage representing the total number of W&I and SB/SE contact closures (a closure resulting from a case 

where SBSE and W&I made contact) divided by the total return filings for the prior year.

Time to Start Compliance Resolution The percentage of all individual income tax enforcement cases started within six months of the return posting 

date.

Time to Resolve Compliance Issue After Filing

The median time it takes to close all individual income tax enforcement cases in days (excluding disaster, 

bankruptcy, and TEFRA cases for exam and collection cases that are not closed as full paid), starting from filing 

date.

Repeat Non-Compliance Rate The percentage of individual taxpayers in a fiscal year with additional non-compliance two years after the initial 

tax year that contains a filing, payment, or reporting compliance issue, compared to total taxpayers. 

Collection Coverage – Units The volume of collection work disposed compared to the volume of collection work available.

Cost to Collect $100 The cost of collecting $100 is computed as total operating costs divided by gross collection multiplied by 100. 

Criminal Investigations Completed

The total number of subject criminal investigations completed during the fiscal year, including those that resulted 

in prosecution recommendations to the Department of Justice as well as those discontinued due to a lack of 

prosecution potential. 

Conviction Rate The percent of adjudicated criminal cases that result in convictions.

Rentable Square Feet per Person The amount of Rentable Square Feet the IRS maintains per person requiring space.

Percent of Aged Hardware This measure shows the quantity of IT hardware in operation past its useful life as a percentage of total hardware 

in use. 

Percent of Major IT Investments within +/- 10% 

Cost Variance at the Investment Level

Number of major IT investments within +/-10 percent variance between planned total cost and projected/actual 

cost within a fiscal year divided by the total number of major IT investments in that fiscal year.

Percent of Major IT Investments within +/- 10% 

Schedule Variance at the Investment Level

Number of major IT investments within +/-10 percent variance between planned days and projected/actual days 

within a fiscal year divided by the total number of major IT investments in that fiscal year.

Budget Level Performance Measure Descriptions
IRS ‐ 119

3.4 – Summary of FY 2020 Savings Realized

Increase e-File Savings 

FY 2020 Actual Savings: -$9,600,000 / -180 FTE 

FY 2022 Projected Savings: -$5,585,000 / -101 FTE 

The IRS realized savings of $9,600,000 and 180 FTE in FY 2020 because of the decrease 

in the number of paper returns processed/filed. The number of paper returns received 

by the IRS decreased by 2,343,531 from FY 2019 to FY 2020 which included 915,062 

fewer individual paper returns and 1,428,469 fewer business paper returns. 
IRS ‐ 120

Section IV – Appendix 

4.1 - COVID-19 Supplemental Funding

Table 1: Spend Plan Including Realignments and OED through March 31, 2021 

CARES Act and Families First Coronavirus Response Act (P.L. 116-36) 

Beginning in mid-March 2020, IRS employees worked around the clock to implement 

major provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The 

IRS and Treasury began delivering the first round of EIPs within two weeks of the 

legislation. The IRS ultimately issued more than 160 million EIPs to taxpayers across the 

country totaling over $270 billion, while simultaneously managing an extended filing 

season. The IRS also delivered hundreds of printed products on the COVID-19 

pandemic, more than 1,300 social media postings, and more than 500 informational 

postings on IRS.gov. Working with partners in the tax professional community, the IRS 

translated key EIP information into 35 different languages. 

The 2020 filing season brought its own unique challenges, but the IRS responded by 

Appropriation

$ in Thousands Initial Spend Plan

Realignments 

through 

March 31, 2021 1

Current Spend 

Plan

OED through 

March 31, 2021

Balance 

Remaining

CARES Act and Families First Coronavirus Response

Taxpayer Services $352,900 $7,891 $360,791 $346,293 $14,498

CARES Act - Rebates (P.L. 116-136) 293,500 7,891 301,391 289,183 12,208

CARES Act - Supplemental (P.L. 116-136) 59,400 59,400 57,110 2,290

Enforcement $79,200 ($16,497) $62,703 $40,734 $21,969

CARES Act - Rebates (P.L. 116-136) 37,200 (16,497) 20,703 7,145 13,558

CARES Act - Supplemental (P.L. 116-136) 42,000 42,000 33,588 8,412

Operations Support $333,600 $8,606 $342,206 $287,554 $54,652

Families First Coronavirus Response Act (P.L. 116-127) 15,000 15,000 14,988 12

CARES Act - Rebates (P.L. 116-136) 170,000 8,606 178,606 141,746 36,860

CARES Act - Supplemental (P.L. 116-136) 148,600 148,600 130,820 17,780

Total CARES Act and Families First Coronavirus Response $765,700 $765,700 $674,581 $91,119

Consolidated Appropriations Act, FY 2021 (EIP3)

Taxpayer Services $196,435 $196,435 $157,982 $38,453

Consolidated Appropriations Act, FY 2021 (P.L. 116-260) 196,435 196,435 157,982 38,453

Operations Support $312,565 $312,565 $129,290 $183,275

Consolidated Appropriations Act, FY 2021 (P.L. 116-260) 312,565 312,565 129,290 183,275

Total Consolidated Appropriations Act, FY 2021 $509,000 $509,000 $287,272 $221,728

American Rescue Plan

Taxpayer Services $422,125 $422,125 $422,125

Advance Tax Year 2021 Child Tax Credit (P.L. 117-2) 206,300 206,300 206,300

Cost of Economic Impact Payment 3 (P.L. 117-2) 215,825 215,825 215,825

Operations Support $939,575 $939,575 $939,575

Advance Tax Year 2021 Child Tax Credit (P.L. 117-2) 190,900 190,900 190,900

Cost of Economic Impact Payment 3 (P.L. 117-2) 248,675 248,675 248,675

Cost to Integrate, Modernize, and Secure IRS Systems (P.L. 117-2) 500,000 500,000 500,000

Business Systems Modernization $500,000 $500,000 $500,000

Cost to Integrate, Modernize, and Secure IRS Systems (P.L. 117-2) 500,000 500,000 500,000

Total American Rescue Plan $1,861,700 $1,861,700 $1,861,700

Total by account

Taxpayer Services 971,460 7,891 979,351 504,275 475,076

Enforcement 79,200 (16,497) 62,703 40,734 21,969

Operations Support 1,585,740 8,606 1,594,346 416,844 1,177,502

Business Systems Modernization 500,000 500,000 500,000

Total $3,136,400 $3,136,400 $961,853 $2,174,547
IRS ‐ 121

breaking records—Modernized e-File (MeF) receipts topped 303 million, including a 

single-day record that totaled more than 10 million receipts. IRS processed more than 

2.275 million e-filed returns at a record hourly rate of 631 submissions per second, 

resulting in refunds reaching taxpayers faster. IRS shifted its response to the pandemic 

by extending filing season to July 15, 2020, using innovative programming, which 

allowed us to implement the changes quickly with no impact to American taxpayers. 

Undertaking implementation of this complex legislation during the 2020 filing season 

was very resource intensive. By February 2021, IRS implemented programming changes 

in IT systems to update Recovery Refund Credit (RRC) eligibility criteria, ensuring all 

returns with a RRC claim were processed accurately in compliance with the tax law. Due 

to the closure of more than 90 percent of our buildings, IRS rescaled operations for 

activities such as paper processing and sending notices. We maintained core operations 

with about 57,000 employees teleworking and others remaining in various facilities. 

Throughout the COVID-19 pandemic, technology was the cornerstone of the IRSʼs ability 

to continue mission-critical work to support the American taxpayer. The IRS ensured 

continuity of services and support to taxpayers utilizing technology. As of September 

2020, 100 percent of customer service representatives were teleworking capable. IRS 

enabled more than 77,000 telework end users with remote virtual private network 

(ERAP) access to securely connect to the IRS network. 

On July 15, 2020, IRS began to test, package and then successfully deployed Zoom 

Government (Zoom.Gov) collaboration capabilities. Zoom capabilities were initially made 

available to 1,400 Office of Chief Counsel personnel, enabling attorneys to perform U.S. 

Tax Court litigation activities in a virtual environment. Ultimately, Zoom collaboration 

capabilities were extended to all employees by November 2020. This accomplishment 

provided employees enhanced video conferencing capabilities to conduct large virtual 

office collaboration meetings. 

IRS expanded the ‘Live Assistance/Callbackʼ feature, resulting in offering 77 percent of 

filing season 2020 telephone callers the option to receive a callback, with over 85 

percent of callbacks successful. For filing season 2021, IRS has worked to increase the 

scope of customer callback for toll-free taxpayer calls from 5 phone business 

applications/product lines to 16 phone applications/product lines. This should increase 

coverage from 19 percent of taxpayer calls to approximately 40 percent. Customer 

Callback for filing season 2021 went live on January 4, 2021. 
IRS ‐ 122

Consolidated Appropriations Act, FY 2021 (P.L. 116-260) 

A second round of EIPs were signed into law on December 27, 2020, and 

payments began posting to bank accounts just two days after legislation was 

enacted. IRS processed 147 million payments totaling $142 billion. As of March 

31, 2021, IRS has sent more than 138 million notices to an eligible taxpayer. IRS 

also issued approximately 36.6 million EIPs (includes reissued payments) in the 

form of paper checks or debit cards for taxpayers where the IRS did not have 

direct deposit information. Between January 25 – 28, 2021, IRS processed the 

EIP 2 Reissuance Payments of 5.2 million rebate refunds, totaling $5.8 billion. 

IRS increased EIP telephone service through a contract that assists with the 

increased volume of taxpayer questions and concerns related to EIPs using an IRS 

prepared scripts to answer general EIP taxpayer questions. This allows IRS CSRs to 

focus on more complex EIP inquiries, critical filing season calls and refund 

protection concerns. Approximately 23.2 million total EIP 2 calls were answered 

through March 12 (cut-off date for EIP 2); of that volume approximately 730 

thousand were answered by IRS assistors, 17.9 million were answered through 

automation, and 4.5 million were answered by the contractor. 

American Rescue Plan (P.L. 117-2) 

The American Rescue Plan was enacted on March 11, 2021, IRS was allocated $1.862 

billion. Of this, $397.2 million was for the implementation of the advance tax year 2021 

child tax credit, $464.5 million to administer the third round of economic impact 

payments (EIP 3), and $1 billion for to integrate, modernize, and secure IRS systems. As 

of May 12, 2021, the IRS, in partnership with Treasury and the Bureau of Fiscal Service, 

disbursed approximately 165 million round-three EIPS, with a total value of 

approximately $388 billion. 

In addition, the U.S. Department of the Treasury and IRS announced in May that the 

first monthly payment of the expanded and newly-advanceable Child Tax Credit (CTC) 

from the American Rescue Plan will be made on July 15. Roughly 39 million households 

— covering 88 percent of children in the United States — are slated to begin receiving 

monthly payments without any further action required. 

Treasury and the IRS also announced the increased CTC payments, will be made on the 

15th of each month, unless the 15th falls on a weekend or holiday, allowing families who 

receive the credit by direct deposit to plan their budgets around receipt of the benefit. 

Eligible families will receive a payment of up to $300 per month for each child under age 

6 and up to $250 per month for each child age 6 and above. Households covering more 
IRS ‐ 123

than 65 million children will receive the monthly CTC payments through direct deposit, 

paper check, or debit cards, and Treasury and the IRS are committed to maximizing the 

use of direct deposit to ensure fast and secure delivery. While most taxpayers will not be 

required to take any action to receive their payments, Treasury and the IRS will continue 

outreach efforts with partner organizations over the coming months to make more 

families aware of their eligibility. 

4.2 - Mandatory Funding and Program Integrity Allocation Adjustment Proposals 

A well-functioning tax system requires that all taxpayers pay what they owe. An 

unfortunate characteristic of the current system, however, is an asymmetric adherence 

to tax law by the nature of income received. While reporting compliance is roughly 99% 

on wages, compliance across other forms of income is substantially less as the IRS has 

difficulty verifying whether income from opaque sources is properly reported. 

Noncompliance is concentrated at the top of the income distribution. A recent study 

found that the top one percent of earners failed to report 20 percent of their income 

and failed to pay nearly $175 billion in taxes owed annually.1

Lower levels of compliance not only impact the fairness of the tax system, but they also 

lower tax revenue and deteriorate our nationʼs fiscal position. Left unaddressed, this tax 

gap— the difference between taxes owed to the government and taxes actually paid— 

will total about $7 trillion over the course of the next decade. This massive gap in 

revenue means policymakers must choose between higher taxes elsewhere in the tax 

system, lower spending on fiscal priorities, or rising budget deficits. 

The tax gap has many underlying causes, chief among them being insufficient IRS 

enforcement. Budget cuts over the past decade have resulted in an agency that lacks 

the capacity to address sophisticated tax evasion efforts. Over this period, audit rates for 

taxpayers making over $1 million in income have fallen by almost 80 percent. 

A robust and sustained investment is necessary to ensure the IRS can do its job of 

administering a fair and effective tax system. The IRS requires more resources to 

conduct investigations into underreported income and to pursue high-income taxpayers 

who evade their tax liability through complex schemes. It requires 21st century 

technology to unpack complex tax returns and track income across various opaque 

sources. The IRS also needs access to better information so that the agency can target 

its efforts at the most egregious offenders, while helping compliant taxpayers avoid 

unnecessary and costly audits. This investment will also put the IRS in a position to 

provide taxpayers with timely answers to questions. 
IRS ‐ 124

These considerations provide the basis for a series of proposals in the American Families 

Plan that overhaul tax administration and provide the IRS with the resources and 

information it needs to address tax evasion. A key component of this initiative is the 

provision of a sustained, multi-year stream of funding for tax administration. The 

Presidentʼs proposals provide roughly $80 billion to the IRS, including $72.5 billion in 

mandatory funding and a $6.7 billion program integrity allocation adjustment, over a 

decade to fund an array of priorities. The proposals also direct that additional resources 

go toward enforcement against those with the highest incomes, rather than Americans 

with actual income of less than $400,000. Specifically, the proposals will. 

 Provide the IRS with the resources it needs to stop sophisticated tax 

evasion. Over the last decade, a declining IRS budget has deprived it of the 

resources it needs to effectively enforce our nationʼs tax laws. After accounting 

for inflation, the IRS budget has fallen by about 20 percent, and its workforce has 

been depleted, with the number of revenue agents (who are dedicated to highend evasion and large corporate cases) falling by 35 percent. As a result, IRS 

audits have fallen across the board, and particularly for the highest earners. 

The IRS has made clear that it needs additional resources to pursue costly tax 

evasion. These are not easy cases to resolve; the average investigation of a highwealth individual takes two years to complete and often requires the IRS to 

commit substantial resources. 

1 TAX EVASION AT THE TOP OF THE INCOME DISTRIBUTION: THEORY AND EVIDENCE 

http://www.nber.org/papers/w28542

Moreover, the lack of adequate investment in compliance has significant revenue 

consequences. Indeed, several hundred taxpayers who committed the most 

egregious form of evasion—failing to file taxes all together—cost the Federal 

Government $10 billion over a period of just three years. 

 Overhaul outdated technology to help the IRS identify tax evasion. Elements 

of IRS IT systems are antiquated and make it difficult for the IRS to identify those 

who are not paying their taxes and to help those who want to comply. The 

Presidentʼs proposal provides the IRS much-needed resources to modernize its 

technological infrastructure. Leveraging 21st century data analytic tools will 

enable the IRS make use of new information about income that accrues to highearners and will help revenue agents unpack complex structures, like 

partnerships, where income is not easily traced. 
IRS ‐ 125

 Improve taxpayer service and deliver tax credits. A well-functioning tax 

system requires that taxpayers be able to interact with the IRS in an efficient and 

meaningful manner. Inadequate resources often mean that IRS customer service 

representatives are unable to provide taxpayers timely answers to their tax 

questions. Service enhancement will improve the ability of the IRS to 

communicate with taxpayers securely and promptly. Importantly, the proposal 

also includes the necessary resources to ensure that the IRS effectively and 

efficiently delivers tax credits to families and workers, including newly expanded 

Child Tax Credits and Child and Dependent Care Tax Credits. 

 Regulate paid tax preparers. Taxpayers often make use of unregulated tax 

preparers who lack the ability to provide accurate tax assistance. These preparers 

submit more tax returns than all other preparers combined, and they make costly 

mistakes that subject their customers to painful audits, sometimes even 

intentionally defrauding taxpayers for their own benefit. The Presidentʼs plan calls 

for giving the IRS the legal authority to implement safeguards in the tax 

preparation industry. It also includes stiffer penalties for unscrupulous preparers 

who fail to identify themselves on tax returns and defraud taxpayers (so-called 

“ghost preparers”).

The table below shows the breakdown of the proposed mandatory funding by account and by 

year. 

The table below shows the revenue effects of the two proposals. These proposals will 

generate a total of $316.2 billion in direct revenue and revenue protected and will cost 

$79.2 billion over the course of a decade, for net revenue of $237.0 billion over 10 years. 

Direct revenue is the enforcement revenue generated from IRS examination and 

collection efforts. Protected revenue results when IRS enforcement actions prevent the 

release of funds in response to taxpayersʼ efforts to recoup previously assessed and paid 

taxes.

In Millions

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total

Taxpayer Services 187 196 209 224 239 254 270 277 284 291 2,431

Enforcement  ‐ 509 1,267 2,212 3,381 4,772 6,527 8,468 10,881 11,256 49,273

Operations Support 695 857 1,012 1,177 1,367 1,867 2,103 2,349 2,631 2,672 16,730

Business Systems Modernization 260 533 547 561 576 296 303 311 319 327 4,033

$1,142 $2,095 $3,035 $4,174 $5,563 $7,189 $9,203 $11,405 $14,115 $14,546 $72,467

Mandatory Proposal by Appropriation

Mandatory total
IRS

‐126

Return on Investing in the IRS

$M 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 TotalMandatoryCost1 1,142 2,095 3,035 4,174 5,563 7,189 9,203 11,405 14,115 14,546 72,467

FTE 2,642 6,729 13,326 20,874 29,783 39,803 51,770 64,770 80,349 81,743

Direct Revenue ‐ 631 3,098 6,959 12,435 19,758 29,903 40,730 53,721 63,780 231,015 3.2

Revenue Protected ‐         ‐ 214 603 1,402 2,584 4,178 6,211 8,532 11,157 34,881

Direct & Protected Revenue ‐ 631 3,312 7,562 13,837 22,342 34,081 46,941 62,253 74,937 265,896 3.7

Program Integrity Allocation Adjustment (FY 2022 Hiring Wave Only)

Cost 417 647 643 660 677 694 712 731 750 769 6,700

FTE 2,555 5,109 5,109 5,109 5,109 5,109 5,109 5,109 5,109 5,109

Direct Revenue 334 1,690 2,826 3,538 4,099 4,565 4,954 5,279 5,554 5,794 38,633 5.8

Revenue Protected ‐ 168 339 517 795 1,324 1,641 1,964 2,242 2,657 11,647

Direct & Protected Revenue 334 1,858 3,165 4,055 4,894 5,889 6,595 7,243 7,796 8,451 50,280 7.5

Mandatory and Allocation Adjustment Combined

Cost 1,559 2,742 3,678 4,834 6,240 7,883 9,915 12,136 14,865 15,315 79,167

FTE 5,197 11,838 18,435 25,983 34,892 44,912 56,879 69,879 85,458 86,852

Direct Revenue 334 2,321 5,924 10,497 16,534 24,323 34,857 46,009 59,275 69,574 269,648 3.4

Revenue Protected ‐ 168 553 1,120 2,197 3,908 5,819 8,175 10,774 13,814 46,528

Direct & Protected Revenue2 334 2,489 6,477 11,617 18,731 28,231 40,676 54,184 70,049 83,388 316,176 4.0

1All costs represent budget authority in millions.2Even with these adjustments, ROI estimates are a lower bound because they omit general deterrence effects that are difficult to measure.

Return

Per Dollar

Invested
IRS‐127

4.3 - Appropriations Detail Table with Program Integrity Allocation Adjustment

In addition to the base appropriations request of $13.2 billion request, the Budget 

proposes a $417 million discretionary program integrity allocation adjustment in FY 

2022 to fund new and continuing investments in expanding and improving the 

effectiveness and efficiency of the IRSʼs overall tax enforcement program. The Budget 

proposes $287 million for the Enforcement account and $129 million for the Operations 

Support account. These investments will generate and protect $50.3 billion in additional 

enforcement revenue over 10 years and will cost $6.7 billion, for a net revenue of $43.6 

billion over 10 years. This return on investment (ROI) is likely understated because it 

does not reflect the effect that enhanced enforcement has on deterring noncompliance. 

IRS Program Integrity Allocation Adjustment FY 2022 – FY 2031 

Dollars in Millions

Return on Investment (ROI) for FY 2022 Enforcement Investments

Enforcement efforts generate and protect revenue, as well as encourage voluntary 

compliance for taxpayers who would otherwise seek to avoid meeting their tax 

obligations under the law. The IRS calculates an ROI for both revenue generating and 

revenue protecting investments. Generated revenue is from compliance efforts that yield 

direct, measurable results through enforcement activities such as examination and 

collection returns. Protected revenue is revenue the IRS protects from being refunded 

erroneously. It is associated with activities that occur before issuing a taxpayerʼs refund, 

including the identification of fraud and questionable returns. 

FY 2022 Revenue Generating Investments 

The allocation adjustment includes $308.2 million in investments for traditional 

enforcement and strategic revenue programs, such as examinations and collection 

activities, which are projected to generate more than $4.6 billion in revenue once the 

investments reach full potential in FY 2024 with an expected total ROI of $8.5 to $1. 

Description 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2022-2031

Base $9,334 $9,577 $9,826 $10,082 $10,344 $10,613 $10,889 $11,172 $11,462 $11,760 $105,058

Allocation $417 $647 $643 $660 $677 $694 $712 $731 $750 $769 $6,700

Outlays $375 $620 $641 $657 $676 $692 $710 $729 $749 $767 $6,616

Total (Base + Allocation) $9,751 $10,224 $10,469 $10,741 $11,020 $11,307 $11,601 $11,902 $12,212 $12,529 $111,758

Direct Revenue $334 $1,690 $2,826 $3,538 $4,100 $4,564 $4,954 $5,279 $5,553 $5,795 $38,634

Revenue Protected $0 $168 $339 $517 $795 $1,324 $1,641 $1,964 $2,242 $2,657 $11,647

Total Revenue $334 $1,858 $3,165 $4,055 $4,895 $5,888 $6,595 $7,243 $7,795 $8,452 $50,281

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI Cost Revenue ROI

FY 2022 Revenue Producing Enforcement Initiatives $308.2 $723.2 2.3 $498.9 $3,621.8 7.3 $544.0 $4,645.3 8.5

PI Allocation Adjustment Enforcement Initiatives $308.2 $723.2 2.3 $498.9 $3,621.8 7.3 $544.0 $4,645.3 8.5

Immediate and Directly Measurable Revenue-Producing Initiatives $308.2 $723.2 2.3 $498.9 $3,621.8 7.3 $544.0 $4,645.3 8.5

Increase Audit Coverage 148.8 394.1 2.6 245.6 1,652.6 6.7 267.6 2,150.9 8.0

Increase Collection Coverage 159.4 329.1 2.1 253.3 1,969.2 7.8 276.4 2,494.4 9.0

First Year (FY 2022) Second Year (FY 2023) Full Performance (FY 2024) 
IRS ‐ 128

FY 2022 Revenue Protecting Investments 

The benefits of IRS activities that prevent erroneous refunds are not captured in IRSʼs 

ROI calculations above. However, the IRS estimates that investment in these activities 

should protect $339.1 million in revenue that otherwise would need to be recovered 

from downstream enforcement actions for an estimated ROI of $2.4 to $1 by FY 2024. 

FY 2022 Revenue Protecting Enforcement Initiatives

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI Cost Revenue ROI

Revenue Protecting Initiatives (which protect taxpayer information, prevents identity theft, and results 

in long-term revenue protection)

$108.5 $0.0 0.0 $144.0 $168.0 1.2 $140.7 $339.1 2.4

PI Allocation Adjustment Revenue Protecting Initiative $108.5 $0.0 0.0 $144.0 $168.0 1.2 $140.7 $339.1 2.4

Return Review Program 38.3 0.0 0.0 43.0 163.9 3.8 42.9 321.6 7.5

Expand Coverage in the Tax-Exempt Sector 37.9 0.0 0.0 66.7 0.0 0.0 64.5 0.0 0.0

Enhance Enforcement Operations 32.3 0.0 0.0 34.3 4.1 0.1 33.3 17.5 0.5

First Year (FY 2022) Second Year (FY 2023) Full Performance (FY 2024) 
IRS ‐ 129

Increase Audit Coverage +$148,810,000 / +1,043 FTE

This initiative requests additional examination employees. The decline in staffing since 

FY 2010 has led to a decrease in the individual audit coverage rate from 1.0 percent in 

Tax Year 2010 to 0.43 percent in Tax Year 2017, which increases the risk to the integrity 

of the nationʼs voluntary tax compliance system. As audit coverage rates have declined, 

individuals and businesses may decide that the chance of an IRS audit is minimal. Lower 

coverage rates can lead to taking riskier positions in tax reporting, especially since the 

IRSʼs audit coverage decline has been 

widely reported. The additional 

resources will fund a broad range of 

compliance priorities and allow for 

earlier case assignment and 

resolution. This investment is expected 

to annually produce additional 

revenue of $2.2 billion, once the new 

hires reach full potential in FY 2024, an 

ROI of $8.0 to $1. These resources will 

help to: 

• Improve the individual audit 

coverage rate by closing more 

Position Type/Other Costs FTE Positions $000

Examination Coverage 519 1,038 $85,074

Revenue Agent 449 898 74,504

Tax Technician 70 140 10,570

Correspondence Examination 169 338 $16,224

Revenue Agent 3 6 467

Tax Examiner 162 324 15,377

Manager/Support Staff 4 8 380

Document Matching 200 400 $19,060

Tax Examiner 200 400 19,060

Other Direct Costs 155 310 $28,452

Revenue Agent 38 76 7,429

Paralegal 7 14 895

Appeals Officer 6 12 1,112

Attorney 50 100 10,525

Tax Examiner 8 16 1,011

Seasonal 0 870

Support Staff 46 92 6,610

Total 1,043 2,086 $148,810
IRS ‐ 130

than 23,700 individual field examination cases and 58,700 correspondence 

examination cases; and 

• Expand the Automated Underreported (AUR) program to process more than 

570,000 additional cases (document matching of individuals decreased 80 

percent from FY 2011 to FY 2020). Note that the FY 2020 rate was also impacted 

by COVID work restrictions. 

Other Direct Costs (+$28,452,000 / +155 FTE) 

Major Activities Projected 

Revenue ($M)

Projected 

Closures

Field Examination 509.2 23,752 

Correspondence Examination 586.6 58,764 

Document Matching/AUR 1,055.1 570,826 

Total $2,150.9 653,342 

IRS Activity Cost FTE Positions Explanation

Appeals $9,553 52 104 Support examination efforts on key compliance areas focused on improving voluntary 

compliance and providing a high level of customer service.

Chief Counsel $14,212 74 148 Provide support for increases in requests for legal advice, litigation assistance, and 

published guidance on issues raised in audits.

Human Capital Office $1,643 9 9

Handle the increase in front-line positions and the expectation that new managerial 

positions will be created. LR support begins in the first year and continues throughout a 

manager's career, as needed.

SB/SE Operations Support $1,922 14 28 Support hiring, training, human capital, technology needs, data analytics and resource 

requirements for the BU.

Privacy, Governmental 

Liaison and Disclosure $1,122 6 12 Address the increase in Freedom of Information Act requests as result of increased compliance activity. 

Total $28,452 155 301

Dollars in thousands
IRS ‐ 131

Increase Collection Coverage +$159,456,000 / +1,184 FTE 

These resources will be used to improve the IRSʼs capacity to work the collection 

inventory and answer taxpayer phone calls. Increased staffing will increase the overall 

collection coverage rate, which has declined 30 percent from FY 2010 to FY 2020 as 

millions of collection cases available to work were not disposed of each year due to lack 

of staffing and operational interruptions brought on by COVID in FY 2020. During the 

pandemic, collection operations were hindered by office shutdowns, a suspension of 

enforcement actions, and a suspension of balance due notices for case creation. This 

investment is expected to produce additional annual enforcement revenue of $2.5 

billion, an ROI of $9.0 to $1 once the new hires reach full potential in FY 2024. These 

resources will help the IRS to:

Position Type/Other Costs FTE Positions $000

Field Collection Coverage 458 916 $73,655

Revenue Officer 458 916 73,655

ACS & ACS Support 359 718 $36,360

Customer Service Representative 284 568 28,627

Tax Examiner 64 128 6,099

Support Staff 11 22 1,634

Correspondence Collection (CSCO) 168 336 $15,497

Tax Examiner 149 298 13,768

Manager and Support Staff 19 38 1,729

Specialty Collection 25 50 $2,961

Revenue Officer 19 38 2,263

Tax Examiner 3 6 277

Manager/Support Staff 3 6 421

Other Direct Costs 174 348 $30,983

Paralegal 5 10 639

Appeals Officer 76 152 14,090

Attorney 31 62 6,341

Tax Examiner 14 28 1,770

Seasonal 726

Support Staff 48 96 7,417

OLS & EDI

Total 1,184 2,368 $159,456
IRS ‐ 132

• Provide 916 additional 

field collection staff to 

expand programs that 

address non-filing and 

underpayment of taxes 

to handle 46,000 

additional collection 

cases. Currently, there 

are over one million 

cases in the queue with 

an aggregate assessed 

balance of more than 

$61 billion - 661,221 of 

these cases are high risk, 

which are cases that have 

a potentially higher 

collection yield and represent a higher compliance risk; 

• Provide 568 additional Automated Collection System (ACS) staff to address an 

additional 378,000 ACS cases. The recent impact from COVID has further strained 

the ACS limited staff in its ability to work inventory and service taxpayers; and 

• Expand several Compliance Services Collection Operations (CSCO) programs that 

address non-filing and underpayment of taxes through the notice process by 1 

million notice dispositions and cases. More than 4,600 Offers-in-Compromise 

cases will also be closed, providing taxpayers another option to resolve their tax 

liability. 

Major Activities Projected

Revenue ($M) Projected Closures

Field Collection 884.8 45,938 

Automated Collection System 1,455.8 378,894 

Offers In Compromise 22.1 4,672 

Compliance Services Collection Operation/Non-Filer 131.7 899,584 

Total $2,494.4 1,329,088 
IRS ‐ 133

Other Direct Costs (+$30,983,000 / +174 FTE) 

IRS Activity Cost FTE Positions Explanation

Appeals 16,960 90 180 Support Collection efforts and appropriately resolve these cases while providing a high 

level of customer service. 

Chief Counsel 8,138 48 96 Provide support for increases in requests for legal advice, litigation assistance, and 

collection due process.

Small Business/Self 

Employed Operations 

Support

2,197 16 32 Support hiring, training, human capital, technology needs, data analytics and resource 

requirements for the BU.

Privacy, Governmental 

Liaison and Disclosure 1,309 7 14 Address the increase in Freedom of Information Act requests as a result of increased compliance activity.

Human Capital Office 2,379 13 26

Handle the increase in front-line positions and the expectation that new managerial 

positions will be created. LR support begins in the first year and continues throughout a 

manager's career, as needed. 

Total $30,983 174 348

Dollars in thousands
IRS ‐ 134

Expand Coverage in the Tax-Exempt Sector +$37,950,000 / +244 FTE 

The tax-exempt sector comprises a large, diverse, and complex population, including: 

• Over 1.8 million exempt organizations, reporting over $4.5 trillion in assets and 

over $2 trillion in revenue; 

• Almost 800,000 employee plans, holding over $8 trillion in assets for over 130 

million plan participants; 

• Over 25,000 government bond issues, representing over $461 billion in bond 

proceeds, and over 2,750 tax-exempt private activity bond issues, representing 

over $127 billion in bond proceeds; and 

• Federal, state, and local governments employing than 21 million employees. 

Position Type/Other Costs FTE Positions $000

Expand Protection and Coverage of Small Business and 

Tax Exempt Sponsored Plans 36.5 73 $5,847

Revenue Agent 31.5 63 5,103

Manager 2.5 5 383

Support Staff 2.5 5 361

Protect Tax-Exempt Sectors and Government Entities 100 200 $15,987

Revenue Agent 84 168 13,608

Tax Compliance Officer 8 16 1,155

Manager 8 16 1,224

Enhance Up-front Compliance for Applicant for TaxExempt Status 37 74 $4,293

Revenue Agent 15 30 2,105

Tax Examiner 12.5 25 970

Manager 3 6 296

Support Staff 3 6 260

Attorney 3 6 570

Appeals Officer 0.5 1 93

Increase Voluntary Compliance 58 116 $8,466

Revenue Agent 7 14 1,215

Tax Technician 22 44 3,045

Tax Examiner 21 42 3,032

Manager 3.5 7 536

Research Analyst 1 2 144

Support Staff 3.5 7 494

Other Direct Costs 12.5 25 $3,357

Special Agent 5 10 1,982

Analyst 1.5 3 192

Attorney 5 10 1,086

Support Staff 1 2 97

Total 244 488 $37,950
IRS ‐ 135

The IRS proposes a multifaceted approach to increase taxpayer confidence and 

ultimately protect taxpayers by enhancing taxpayer education, voluntary compliance, 

and enforcement coverage for employee retirement plans, exempt organizations, taxexempt bonds, and Federal, state, and local governments. These resources will be used 

to expand taxpayer education, voluntary compliance, and general compliance activities 

in the tax-exempt sector. In addition, these resources will help prevent fraud and 

ultimately improve taxpayer confidence in the tax-exempt. 

Once the requested staff are fully trained, the IRS anticipates these additional resources 

will increase the number of examination closures by approximately 9,291. 

Other Direct Costs (+$3,357,000 / + 12.5 FTE) 

IRS Activity Cost FTE Positions Explanation

Appeals $97 1 2 Support examination efforts on key compliance areas focused on improving voluntary 

compliance and providing a high level of customer service.

Chief Counsel $1,086 5 10 Provide support for increases in requests for legal advice, litigation assistance, and 

collection due process.

Criminal 

Investigation $2,174 6.5 13

Support Criminal Investigations pertaining to refund fraud prevention. Examination efforts 

on fraud prevention enforcement, advance complex cases, litigation advance cases and 

other tax compliance areas focused on improving high level service.

Total $3,357 12.5 25

Dollars in thousands
IRS ‐ 136

Enhance Return Review Program +$38,341,000 / +60 FTE 

This investment provides funding for staff, hardware, software, and contractual services 

for deployed Return Review Program (RRP) applications. 

Since October 2016, the RRP has been the IRSʼs primary system for detecting tax return 

fraud and other anomalies in tax filings, with a current focus on individual tax return 

data. In FY 2020, RRP confirmed more than $826 million in Identify Theft and $2.3 billion 

in Non-Identity Theft fraud protection. In FY 2020 RRP had a return on investment (ROI) 

of $56 to $1. 

Funding will allow the IRS to provide support for the deployed capabilities by: 

• Enhancing applications, data modeling and mining, database development, 

business rules development, infrastructure support, performance engineering and 

testing, and application testing; 

• Providing funds for annual maintenance from hardware vendors and purchases 

to refresh computers, network equipment, and storage; 

• Updating and maintaining the system software including operating systems, 

database, data integration, and utility software; and 

• Working with the service to update the rules engines and data analytics. 

Position Type/Other Costs FTE Positions $000

Improve Return Review Program

Tax Examiner 60 120 5,427

Contractual Services 32,914

Total 60 120 $38,341
IRS ‐ 137

Enhance Enforcement Operations +$32,340,000 / +23 FTE 

Funding for this investment will allow the IRSʼs Criminal Investigation division (IRS-CI) to: 

• Expand the use of specialized contractor support service provided by a group of 

cyber/crypto experts; 

• Build an internal dashboard for cryptocurrency/blockchain analytics; 

• Establish a One-IRS approach to cryptocurrency non-compliance around both tax 

and non-tax case development; 

• Seek private sector expertise in applied analytics, cybercrime, forensic 

accounting/discovery support, investigative support, and related consulting 

services; and 

• Support the following functions: 

Cyber/Crypto Experts 

Currently, IRS-CI has contractors to perform three distinct functions: case support and 

analysis on the highest priority cases; implementing and maintaining cyber-crimes data 

environment (operational datasets, servers, workstations, and support); and developing 

operational tools and capabilities to hunt cyber criminals. These contractors have been 

embedded within IRS-CIʼs Eastern Cyber Crimes Unit (CCU) since its establishment and 

continue to be a critical lifeline for the success of the program area. In IRS-CIʼs Western 

CCU, a specialized contractor assists in the development efforts to build an internal, CIowned dashboard, called STRIKES, for cryptocurrency/blockchain analytics. This tool 

harnesses the power of existing vendor products to combine them and take advantage 

of the strengths each provides. Due to the interoperability with IRS-CI data (Cyber data, 

Under Cover (UC) information, subpoenas, search warrants, Open-source intelligence 

(OSINT)), this tool will soon become an enterprise-wide capability. 

Crypto Case Development 

IRS-CI, in conjunction with the Advanced Collaboration and Data Center (ACDC), will 

look to establish a One-IRS approach to cryptocurrency non-compliance around both 

tax and non-tax case development. Partnering with other IRS business units, this 

contract would bring on investigators to provide illicit activity pattern identification and 

Position Type/Other Costs FTE Positions $000

Enhance Enforcement Operations 

IT Specialist 23 46 3,340

Hardware and Software 6,000

Contractual Services 23,000

Total 23 46 $32,340
IRS ‐ 138

monitoring. Paired with extensive intelligence gathering, these contractors would supply 

proactive lead generation around tax compliance and illegal activities involving 

cryptocurrency. Additionally, these contractors would be strategically positioned within 

the ACDC facility to leverage training and subject matter expertise. The plan would be to 

expand the scope of work and reassess the return on investment each year to determine 

continuation. 

Strategic Priorities, Accelerated Results (SPAR) 

The IRS must make use of technology and data to help drive case selection and 

efficiency in the critical work IRS-CI performs. Funding for SPAR will allow the IRS to use 

resources for applied analytics, cybercrimes, related consulting services, investigative 

support, and forensic accounting/discovery support, and will: 

• Maintain and improve the IRSʼs ability to trace virtual currency transactions in 

financial investigations and utilize emerging tools and technology to combat 

cyber enabled financial crimes; 

• Modernize training of investigative staff, including special agents and 

investigative analysts, which will enable IRS-CI to improve its ability to enforce 

the law, ensure tax compliance with tax responsibilities, and aid the IRS in 

combating fraud; 

• Allow investigations of large-scale fraud in a more efficient manner, utilizing 

forensic accounting jump teams to provide support as needed in significant tax 

investigations; 

• Provide models, algorithms, and the means to efficiently review the millions of 

records and evidence IRS-CI obtains to help identify areas of tax fraud; 

• Allow the use of data analytics and other technologies like “predictive policing” to 

help give a clearer picture to IRS-CI for future enforcement areas; and 

• Modernize processes and infrastructure to allow efficient and effective use of 

resources. 
IRS ‐ 139

4.4 – Summary of IRS FY 2022 Request by Business Unit (including the Program 

Integrity Allocation Adjustment) 

4.5 – Summary of IRS FY 2022 Identity Theft Budget Request

By Business Unit: Dollars % of TS

Appropriation Dollars % of ENF

Appropriation Dollars % of OS

Appropriation Dollars % of BSM

Appropriation Dollars % of

Total Budget

Information Technology 2,370,703,165 53.30% 305,031,992 100.0% 2,675,735,157 20.34%

Wage & Investment 2,505,410,796 85.19% 276,687,263 5.06% 213,835,324 4.81% 2,995,933,383 22.77%

Small Business/Self-Employed 2,332,417,204 42.70% 2,332,417,204 17.73%

Facilities Management and Security 

Services

1,144,142,685 25.72% 1,144,142,685 8.70%

Large Business and International 785,308 0.03% 1,003,019,659 18.36% 1,008,138 0.02% 1,004,813,105 7.64%

Criminal Investigation 722,677,719 13.23% 3,867,431 0.09% 726,545,150 5.52%

Chief Counsel 23,388,595 0.80% 400,564,811 7.33% 34,509 0.00% 423,987,915 3.22%

Human Capital Office 310,036,846 6.97% 310,036,846 2.36%

Tax Exempt & Government Entities 8,160,951 0.28% 254,943,157 4.67% 263,104,108 2.00%

Taxpayer Advocate Service 235,058,642 7.99% 204,661 0.00% 235,263,303 1.79%

Corporate Reserve and Payments 62,261,204 2.12% 124,255,498 2.27% 36,197,915 0.81% 222,714,617 1.69%

Appeals 233,847,080 4.28% 233,847,080 1.78%

Research, Applied Analytics, and 

Statistics

2,959,519 0.10% 28,982,867 0.53% 52,159,280 1.17% 84,101,666 0.64%

Chief Financial Officer 23,549,840 0.43% 73,394,485 1.65% 96,944,325 0.74%

Privacy, Governmental Liaison and 

Disclosure

42,964,962 1.46% 2,191,749 0.04% 77,046,650 1.73% 122,203,361 0.93%

Procurement 73,691,231 1.66% 73,691,231 0.56%

Communications & Liaison 17,355,843 0.59% 5,895,867 0.11% 29,474,834 0.66% 52,726,544 0.40%

Online Services 41,179,204 1.40% 41,179,204 0.31%

Return Preparer Office 830,499 0.03% 13,951,991 0.26% 219,094 15,001,584 0.11%

Enterprise Digitalization and Case 

Management Office

27,976,853 0.51% 0.00% 27,976,853 0.21%

Equity, Diversity & Inclusion 33,559,310 0.75% 33,559,310 0.26%

Front Office2 520,467 0.02% 496,453 0.01% 21,344,524 0.48% 22,361,444 0.17%

Whistleblower Office 7,427,697 0.14% 7,427,697 0.06%

Office of the Chief Risk Officer 6,129,347 0.14% 6,129,347 0.05%

Office of Professional Responsibility 3,937,139 0.07% 3,937,139 0.03%

Taxpayer First Act Office 0.00% 1,145,961 0.03% 1,145,961 0.01%

Total 2,940,875,990 5,462,822,847 4,448,195,390 305,031,992 13,156,926,219

Note: These figures reflect full requirements before taking any proposed reductions (Operations Support Hiring Reduction/Delay, FMSS Physical Infrastructure/Security Reduction/Delay, IT Reduction/Delay).

2 Includes Commissioner, Chief of Staff, DCOS, DCSE offices, and Project Management Offices for ACA/FATCA and Services & Enforcement.

Taxpayer Services Enforcement Operations Support BSM Total

Bureau: Internal Revenue Service 

Summary of FY 2022 Request $000 FTE $000 FTE $000 FTE $000 FTE

FY 2021 Operating Plan $78,519 1,027 $116,257 1,278 $6,902 28 $201,678 2,333

Changes to Base:

Maintaining Current Levels (MCLs) $3,691 $4,113 $257 $8,061

Pay Annualization (1.0% average pay raise) 196 241 16 453

Pay Raise (2.7% average pay raise) 2,807 2,826 183 5,816

Non-Pay 1 303 9 313

FERS Contribution Increase 687 743 49 1,479

Subtotal FY 2022 Changes to Base $3,691 $4,113 $257 $8,061

FY 2022 Current Services $82,210 1,027 $120,370 1,278 $7,159 28 $209,739 2,333

Total FY 2022 Request (Before PIAA) $82,210 1,027 $120,370 1,278 $7,159 28 $209,739 2,333

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan $3,691 $4,113 $257 $8,061

Percent Change FY 2022 Request over FY 2021 Operating Plan 4.70% 3.54% 3.72% 4.00%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT TOTAL
IRS ‐ 140

4.6 – Summary of IRS FY 2022 ACA Budget Request

4.7 – Summary of IRS FY 2022 Cyber Security Budget Request

Bureau: Internal Revenue Service 

Summary of FY 2022 Request $000 FTE $000 FTE $000 FTE $000 FTE

FY 2021 Operating Plan $74,746 1,088 $14,719 139 $22,339 127 $111,804 1,354

Changes to Base:

Maintaining Current Levels (MCLs) $3,518 $584 $871 $4,973

Pay Annualization (1.0% average pay raise) 187 37 55 279

Pay Raise (2.7% average pay raise) 2,665 439 646 3,750

Non-Pay 1 2 6 9

FERS Contribution Increase 665 106 164 935

Subtotal FY 2022 Changes to Base $3,518 $584 $871 $4,973

FY 2022 Current Services $78,264 1,088 $15,303 139 $23,210 127 $116,777 1,354

Total FY 2022 Request (Before PIAA) $78,264 1,088 $15,303 139 $23,210 127 $116,777 1,354

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan $3,518 $584 $871 $4,973

Percent Change FY 2022 Request over FY 2021 Operating Plan 4.71% 3.97% 3.90% 4.45%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT TOTAL

Bureau: Internal Revenue Service 

Summary of FY 2022 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2021 Operating Plan $69,412 33 $107,796 77 $340,380 530 $53,552 19 $571,140 659

Changes to Base:

Maintaining Current Levels (MCLs) $468 $599 $6,918 $7,985

Pay Annualization (1.0% average pay raise) 15 35 233 283

Pay Raise (2.7% average pay raise) 211 414 2,720 3,345

Non-Pay 195 41 3,232 3,468

FERS Contribution Increase 47 109 733 889

Subtotal FY 2022 Changes to Base $468 $599 $6,918 $7,985

FY 2022 Current Services $69,880 33 $108,395 77 $347,298 530 $53,552 19 $579,125 659

Program Increases:

Putting Taxpayers First 27,000 45 27,045

User Authentication 27,000 27,000

Taxpayer Experience Strategy 45 45

Ensure Fairness of the Tax System 366 366

Improve Live Assistance 427 427

IRS Integrated Modernization Business Plan 5,348 2 5,348 2

Subtotal FY 2022 Program Increases $27,000 $838 $5,348 2 $33,186 2

Total FY 2022 Request (Before PIAA) $96,880 33 $108,395 77 $348,136 530 $58,900 21 $612,311 661

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan $27,468 $599 $7,756 $5,348 2 $41,171 2

Percent Change FY 2022 Request over FY 2021 Operating Plan 39.57% 0.56% 2.28% 9.99% 10.53% 7.21% 0.30%

PIAA Program Increases

Increase Audit Coverage 216 216

Increase Collection Coverage 243 243

Expand Coverage in the Tax-Exempt Sector 49 49

Enhance Return Review Program 12 12

Enhance Enforcement Operations 5 5

Subtotal FY 2022 PIAA Investments $525 $525

Total FY 2022 Request Including PIAA $96,880 33 $108,395 77 $348,661 530 $58,900 21 $612,836 661

Dollar/FTE Change FY 2022 Request Including PIAA over FY 2021 Operating Plan $27,468 $599 $8,281 $5,348 2 $41,696 2

Percent Change FY 2022 Request Including PIAA over FY 2021 Operating Plan 39.57% 0.56% 2.43% 9.99% 10.53% 7.30% 0.30%

Note: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million 

provided in the Consolidated Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2), the $417 million Program Integrity Allocation Adjustment, and the $79 billion mandatory funding 

proposal.

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT BSM TOTAL
IRS ‐ 141

4.8 – Summary of IRS FY 2022 Budget Request 

Bureau: Internal Revenue Service 

Summary of FY 2022 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2021 Operating Plan $2,587,606 25,989 $5,004,622 34,989 $4,104,102 12,037 $222,724 394 $11,919,054 73,409

Changes to Base:

Maintaining Current Levels (MCLs) $75,138 $148,473 $100,219 $4,165 $327,995

Pay Annualization (1.0% average pay raise) 5,930 11,650 4,699 163 22,442

Pay Raise (2.7% average pay raise) 48,152 94,603 38,157 1,327 182,239

Non-Pay 4,138 6,725 42,546 2,232 55,641

FERS Contribution Increase 16,918 35,495 14,817 443 67,673

Efficiencies/Savings ($5,494) (409) ($91) ($5,585) (409)

Increase e-File Savings (5,494) (101) (91) (5,585) (101)

Personnel Savings (308) (308)

Subtotal FY 2022 Changes to Base $69,644 (409) $148,473 $100,128 $4,165 $322,410 (409)

FY 2022 Current Services $2,657,250 25,580 $5,153,095 34,989 $4,204,230 12,037 $226,889 394 $12,241,464 73,000

Program Increases:

Putting Taxpayers First 35,459 55 36,294 96 104,333 143 176,086 294

User Authentication 27,000 27,000

Taxpayer Experience Strategy 8,459 55 36,294 96 104,333 143 149,086 294

Ensure Fairness of the Tax System 270,858 1,820 69,409 13 340,267 1,833

Improve Live Assistance 248,167 4,203 69,833 318,000 4,203

Integrated Modernization Business Plan 78,143 18 78,143 18

Electric Vehicles and Associated Infrastructure 2,576 390 2,966

Subtotal FY 2022 Program Increases $283,626 4,258 $309,728 1,916 $243,965 156 $78,143 18 $915,462 6,348

Total FY 2022 Request (Before PIAA) $2,940,876 29,838 $5,462,823 36,905 $4,448,195 12,193 $305,032 412 $13,156,926 79,348

Dollar/FTE Change FY 2022 Request over FY 2021 Operating Plan $353,270 3,849 $458,201 1,916 $344,093 156 $82,308 18 $1,237,872 5,939

Percent Change FY 2022 Request over FY 2021 Operating Plan 13.65% 14.81% 9.16% 5.48% 8.38% 1.30% 36.96% 4.57% 10.39% 8.09%

PIAA Program Increases

Increase Audit Coverage 109,317 1,028 39,493 15 148,810 1,043

Increase Collection Coverage 113,122 1,164 46,334 20 159,456 1,184

Expand Coverage in the Tax-Exempt Sector 29,952 244 7,998 37,950 244

Enhance Return Review Program 3,388 60 34,953 38,341 60

Enhance Enforcement Operations 31,673 23 667 32,340 23

Subtotal FY 2022 PIAA Investments $287,452 2,519 $129,445 35 $416,897 2,554

Total FY 2022 Request Including PIAA $2,940,876 29,838 $5,750,275 39,424 $4,577,640 12,228 $305,032 412 $13,573,823 81,902

Dollar/FTE Change FY 2022 Request Including PIAA over FY 2021 Operating Plan $353,270 3,849 $745,653 4,435 $473,538 191 $82,308 18 $1,654,769 8,493

Percent Change FY 2022 Request Including PIAA over FY 2021 Operating Plan 13.65% 14.81% 14.90% 12.67% 11.54% 1.59% 36.96% 4.57% 13.88% 11.57%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT BSM TOTAL


 

Department of the Treasury 

Departmental Offices 

Salaries and Expenses 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2022 
DOSE - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

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

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations .............................................................. 12

D – Appropriations Language and Explanation of Changes .................................................... 13

E – Legislative Proposals .......................................................................................................... 13

Section II – Annual Performance Plan and Report ................................................................. 14

A – Strategic Alignment ........................................................................................................... 14

B – Budget and Performance by Budget Activity .................................................................... 14

2.1.1 – Executive Direction Resources and Measures .............................................................. 14

Executive Direction Budget and Performance .......................................................................... 14

2.1.2 – International Affairs and Economic Policy Resources and Measures .......................... 15

International Affairs and Economic Policy Budget and Performance ...................................... 16

2.1.3 – Domestic Finance and Tax Policy Resources and Measures ........................................ 19

Domestic Finance and Tax Policy Budget and Performance .................................................... 19

2.1.4 – Treasury-wide Management and Programs Resources and Measures .......................... 25

Treasury-wide Management and Programs Budget and Performance ..................................... 26

2.1.5 – Committee on Foreign Investment in the United States Resources and Measures....... 31

Committee on Foreign Investment in the United States Budget and Performance .................. 32

C – Changes in Performance Measures .................................................................................... 32

D – Evidence-Building Activity ............................................................................................... 33

Section III – Additional Information ........................................................................................ 37

A – Summary of Capital Investments ....................................................................................... 37
DOSE - 3 

Section I – Budget Request 

A – Mission Statement 

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

that enable economic growth and stability at home and abroad and manage the U.S. 

Government’s finances and resources effectively. 

B – Summary of the Request 

The FY 2022 budget for Treasury Departmental Offices (DO) Salaries and Expenses (SE) 

provides the necessary resources for the Treasury Department to tackle major issues confronting 

the U.S. economy. Funding is requested to continue to support pandemic response efforts, 

address climate change, income equality and racial equity, and restore the Treasury Department 

staffing levels to support key programs and other emerging risks. This budget request also 

includes increases for DO’s IT infrastructure, including replacements for servers that have 

reached the end of their lives, and modernization of IT equipment and software that is used daily 

by DO staff. This budget request also transitions Treasury’s fleet management program by 

upgrading to electric vehicles and providing the infrastructure for DO to maintain this posture. 

In addition to requested increases for the Treasury Departmental Offices (DO) Salaries and 

Expenses (SE) account, DO anticipates transferring in and executing $15 million from the 

$20 million request of the Committee on Foreign Investment in the United States (CFIUS) Fund, 

discussed separately. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Executive Direction 95 $36,775 107 $37,333 145 $49,020 35.5% 31.3% 

International Affairs and Economic 

Policy 177 $52,825 181 $53,661 199 $62,827 9.9% 17.1% 

Domestic Finance and Tax Policy 218 $78,153 228 $79,566 253 $90,658 11.0% 13.9% 

Treasury-wide Management and 

Programs 92 $38,279 112 $39,779 119 $43,608 6.3% 9.6% 

Committee on Foreign Investment in 

the United States 56 $22,341 93 $22,661 120 $24,556 29.0% 8.4% 

Subtotal New Appropriated 

Resources 638 $228,373 721 $233,000 836 $270,669 16.0% 16.2% 

Other Resources 

Reimbursable 39 $10,300 39 $11,000 39 $11,000 0.0% 0.0% 

Transfers from CFIUS Fund 0 $15,000 0 $15,000 0 $15,000 NA 0.0% 

Subtotal Other Resources 39 $25,300 39 $26,000 39 $26,000 0.0% 0.0% 

Total Budgetary Resources 677 253,673 760 $259,000 875 $296,669 15.1% 14.5% 

The table does not include the $25M in FY 2020 supplemental funding appropriated in the Coronavirus Aid, Relief, and Economic Security 

(CARES) Act for SBA support. 

The table does not reflect the proposed move of the Office of Consumer Policy from the Executive Direction budget activity to Domestic Finance 

& Tax Policy
DOSE - 4 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

FTE Amount 

FY 2021 Operating Plan 721 $233,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $6,540 

Pay Annualization (1.0% average pay raise) 0 $349 

Pay Raise (2.7% average pay raise) 0 $3,160 

FERS Contribution Increase 0 $1,163 

Non-Pay 0 $1,868 

Non-Recurring Costs 0 ($4,364) 

Non-Recurring Costs Including CFIUS Infrastructure 

Investments 0 ($4,364) 

Other Adjustments: 2 $0 

FTE Annualization (OMWI and OCDO) 2 $0 

Subtotal Changes to Base 2 $2,176 

FY 2022 Current Services 723 $235,176 

Program Changes: 

Reinvestments 27 $4,364 

 Staffing to Support CFIUS Program Growth 27 $4,364 

Program Increases: 86 $31,129 

Departmental Offices Staffing 86 $20,000 

Replacement of End of Life Servers 0 $3,341 

IT Modernization 0 $7,484 

Electric Vehicles and Associated Infrastructure 0 $304 

FY 2022 President's Budget Request 836 $270,669 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..................................................... +$6,540,000 / +0 FTE 

Pay Annualization (1.0%) +$349,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$3,160,000 / +0 FTE 

Funds are requested for a 2.7% federal employee pay raise in January 2022.

FERS Contribution Increase +$1,163,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022.

Non-Pay +$1,868,000 / +0 FTE 

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

equipment. 

Non-Recurring Costs ................................................................................. -$4,364,000 / -0 FTE 

Non-Recurring Costs Including CFIUS Infrastructure Investments -$4,364,000 / -0 FTE 

Reduction in DO SE-related non-labor expenses primarily related to the CFIUS program as the 

program finalizes facilities-related investments to support the increase of CFIUS staffing within 

the Treasury complex. 
DOSE - 5 

Other Adjustments ................................................................................................... +$0 / +2 FTE 

FTE Annualization (OMWI and OCDO) +$0 / +2 FTE 

Technical adjustment for Treasury leadership approved staffing increases for the Office of 

Minority and Women Inclusion (OMWI) and Office of the Chief Data Officer (OCDO) related to 

DO’s FY 2021 request. 

One of Treasury’s priorities is to improve the Administration’s ability to support everyday 

Americans by addressing generational issues including income equality and racial equity. The 

Office of Consumer Policy (OCP) plays a crucial role in policy analysis related to these key 

issues. To help further these policy goals, Treasury plans to transfer OCP to Domestic Finance 

in FY 2021. This will centralize Treasury’s resources focused on domestic and consumer policy 

issues and improve Treasury’s ability to provide timely and accurate analyses of these programs 

of national importance. 

Reinvestments ........................................................................................... +$4,364,000 / +27 FTE

Staffing to Support CFIUS Program Growth +$4,364,000 / +27 FTE 

Increase in CFIUS staffing to continue to support anticipated program growth. Funding will 

come from redirecting non-labor spending. 

Program Increases ................................................................................ +$31,129,000 / +86 FTE 

Departmental Offices (DO) Staffing +$20,000,000 / +86 FTE

This funding request seeks to provide Treasury’s policy offices with baseline staffing levels 

needed support the core Treasury mission and the Secretary’s priorities. Over the past four 

years, DO’s policy-related staffing levels were reduced by a total of 11 percent. The Department 

is critically understaffed in key Treasury offices that are the nexus for the Department’s response 

to economic crises and programs of national importance. 

Treasury requests $20 million to fund 86 positions in order to carry out Treasury’s mission and 

support key Administration priorities, including 1) responding effectively to the pandemic and 

supporting robust economic recovery; 2) addressing the threat of climate change; 3) addressing 

income inequality and ensuring racial equity; 4) reinforcing the United States’ position on the 

world stage. This request also provides funding policy and oversight functions within DO that 

have seen outsized workload growth due to of unfunded mandates placed upon the Department. 

Specifics regarding this request are included below. 

Pandemic Response 

Treasury plays a central role in carrying out the Government’s response to the coronavirus 

pandemic, providing critical support to families, small businesses, and local communities. DO 

staff have been involved in carrying out a collection of major programs over the past year (see 

Table 1). In many cases, this substantial staff effort has come at the expense of other critical 

programs. 

 
DOSE - 6 

Coronavirus Aid, Relief, and

Economic Security (CARES) Act

Consolidated Appropriations

Act, 2021 (CAA) American Rescue Plan (ARP)

Air Carrier Workers Support Air Carrier Workers Support

Extension Emergency Rental Assistance II

Economic Stabilization Fund Transportation Service Grants Homeowner Assistance Fund

Small Business Lending

Guarantees Emergency Rental Assistance I State Small Business CreditInitiative

Coronavirus Relief Fund Emergency Capital Investment

Program

Air Transportation Payroll

Support Program Extension

      Coronavirus State and Local Fiscal

Recovery Funds

      Coronavirus Capital Projects Fund

Local Assistance and Tribal

Consistency Fund

Note: Please refer to the Treasury Coronavirus Relief, Response, Aid, and Recovery Programs Congressional Justification for more information 

on the Department’s efforts related to pandemic response. Economic Impact Payments (EIPs) and other tax credits are also covered within the 

IRS chapter, and Community Development Financial Institutions (CDFI) programs are also referenced in the CDFI chapter. 

The reallocation of existing staff to address recovery-related programs has displaced other core 

work, which is not sustainable over the long-term. As an example of this strain, Domestic 

Finance’s Office of Community and Economic Development (OCED) has had a major role in 

implementing new Congressionally mandated programs, including the Emergency Rental 

Assistance Program, the Homeowner Assistance Fund, and the Emergency Capital Investment 

Program. Current staffing levels allow for OCED to meet the statutory requirements; however, 

for these programs to succeed, it is critical that staff have the resources needed to go beyond 

statutory requirements, including gathering data and conducting analyses to evaluate and 

communicate the effect of these emergency programs to Congress and the public. 

Climate 

Tackling the climate crisis at home and abroad is a top U.S. national security and foreign policy 

priority for the Administration. Consistent with Executive Order 14008, Treasury will advance 

initiatives to increase the United States government’s ability to further ambitious climate goals, 

promote transparency around climate-related financial risks, encourage sustainable finance, and 

foster a strong, green recovery. To achieve those outcomes, Treasury’s already-stretched staff 

needs reinforcements: economists with knowledge of energy policy and pricing schemes, 

economists with climate finance experience focused on domestic and international financing 

needs and strategies, insurance experts, legal support, and experts capable of analyzing issues 

related to energy and individual taxation. This funding would support a cross-cutting “climate 

hub" within the Department to coordinate Treasury’s efforts. 

This funding will also restore Treasury’s ability to monitor, assess, and advocate for key U.S. 

government priorities in international settings in a manner that ensures global efforts support 

U.S. objectives and achieve congruence between domestic and international efforts. 

Over the last several years, Treasury has had a reduced footprint at key climate venues like the 

United Nations, G7, and G20. Increasing staffing levels will allow Treasury to reengage in these 

and other key international fora and further lead advancement of climate finance issues 

domestically and internationally. 
DOSE - 7 

Treasury must also respond to the risks to operational resilience presented by climate change to 

the financial sector. The Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) 

executes Treasury’s role as Sector Risk Management Agency (SRMA) for the financial services 

sector, a designated critical infrastructure sector. Treasury’s authority as SRMA is derived from 

Section 9002 of the Fiscal Year 2021 National Defense Authorization Act (FY 2021 NDAA). 

OCCIP is responsible for sector coordination, assessing sector risk, sector risk management, 

information sharing, emergency preparedness, and incident management. The FY 2021 NDAA 

codifies SRMA responsibilities and places new emphasis on three key initiatives: 1) enhanced 

coordination with state, local, tribal, and territorial authorities, 2) more robust risk assessment 

and analysis with greater integration of cyber and physical risks, and 3) improved coordination 

with the Cybersecurity and Infrastructure Security Agency regarding threats and vulnerabilities 

related to critical infrastructure. 

Income Equality and Racial Equity 

Treasury also requires additional staff strength to ensure the pandemic is not a generational 

setback for racial equity. Executive Order 13985 calls for the Government to ensure equal 

opportunity, in large part through the removal of entrenched disparities in our laws and public 

policies. Treasury will prioritize closing this racial disparity gap. According to this EO, 

improving racial equity across a variety of factors may contribute up to $5 trillion in GDP to the 

American economy over the next decade. 

These efforts will require additional staff to improve the quality and frequency of Treasury 

consultation with historically underrepresented and underserved groups, including communitybased organizations, civil rights organizations, community development financial institutions and 

minority depository institutions. Likewise, Treasury needs to grow its ability to provide and 

analyze data to appropriately monitor key demographic variables in the areas of tax, financial 

services, and insurance to improve efforts to measure and advance equity. As an example of 

these efforts, Tax Policy and the IRS will be responsible for leading a project to develop models 

to understand racial and gender biases present within the tax code. Projects such as these require 

additional staff and analytic processing capabilities and will contribute to the Department’s goal 

to better understand how current Treasury polices and systems contribute to inequity, which is a 

key step in ensuring an equitable system. The Department’s efforts to advance racial and gender 

equity also extend to the composition of its workforce. Over the past several years DO has 

initiated both staff-led and management-led programs to support Treasury’s efforts to build a 

diverse workforce that represents all of America. 

Treasury also requires one FTE to support and shepherd DO in their hiring and performance 

management efforts related to pandemic relief, climate, and economic and racial inequality 

initiatives. This position will manage the Department’s SES allocations and policies to ensure 

existing positions are used to support key administration priorities and requests for additional 

positions via OPM’s biennial allocation review are appropriately justified. Finally, this position 

will lead the SES performance process, working with key program areas across Treasury to 

develop, monitor, and ensure performance goals align to pandemic relief, climate, and economic 

and racial equity work, while also working with OPM on the annual certification of the 

Department’s SES performance program. 
DOSE - 8 

International Relations and Trade 

Finally, the Administration prioritizes a return to the forefront on many international issues. One 

important lever that Treasury uses to engage international partners is the Treasury Financial 

Attaché Program. In the National Defense Authorization Act (NDAA) of 2020, Congress 

recognized their importance by including provisions for additional Treasury attaché posts as well 

as pay comparability for Treasury attachés relative to their foreign service counterparts. The 

Treasury Financial Attaché Program has likewise been recognized by the State Department as a 

significant force multiplier. This funding request provides additional funding needed to meet the 

pay comparability requirements set by the NDAA. Treasury will continue to assess various 

attaché posts as candidates for expansion in accordance with the NDAA’s other provisions. In 

addition, this funding would allow DO to more proactively engage on key economic issues that 

matter to the United States. This would include more forward leaning engagement with the 

International Financial Institutions, through multilateral fora such as the G20, and bilaterally on 

critical economic and national security issues, such as global economic recovery from the 

coronavirus pandemic, debt transparency, and climate change. 

DO has also seen program increases in countervailing duties (CVDs). Rule changes were 

published in 2019 and adopted in 2020 enable the U.S. Department of Commerce to impose 

countervailing duties when it finds that a foreign government has acted to undervalue its 

currency relative to the dollar, resulting in a subsidy to their exports. To date, Treasury has 

utilized limited resources previously provided to address currency manipulation to develop a 

novel economic model used to evaluate these cases and invest in IT infrastructure necessary to 

run these analytical models. The Budget provides necessary resources to evaluate future filings 

and defend the conclusions reached according to the framework. 

Tax Policy 

The Administration has proposed broad policy proposals in tax policy and administration that 

generate the need for policy analysis, data, and regulation development. Given the office’s role 

in these areas, the Budget includes resources to address the growth in workload. Additionally, 

management responsibility and oversight of the 1332 waiver program or the Affordable Care Act 

(ACA) continues to grow. The program requires substantial resources to provide assistance to 

states, evaluate state waiver applications, calculate amounts to be paid to states with waivers, and 

monitor the effects of waivers. Treasury has approved 16 applications through FY 2020. The 

Department is currently running this program with a total of 1.5 full-time equivalent (FTE) 

employees, drawn from the Office of Tax Policy (including the Office of Tax Analysis and Tax 

Legislative Counsel), and Office of General Counsel. Each year, the program grows because the 

Department is annually responsible for determining pass-through amounts for existing waivers in 

addition to reviewing new applications. The Budget includes base resources to address these 

challenges. 

Economic Policy 

The President has proposed and signed several major pieces of legislation in his first 100 days in 

office, with many of the new policies expected to present significant impacts on the 

macroeconomy. This agenda will have a considerable impact on areas covered by Economic 

Policy, including research on infrastructure, housing, retirement security, digital assets, national 
DOSE - 9 

security, and education and student loans. The pandemic has also brought unprecedented swings 

in several macroeconomic indicators that require close monitoring. 

In addition to research supporting this agenda, economists in Economic Policy work on the 

preparation of the Administration's Budget. The Assistant Secretary for Economic Policy serves 

on “Troika”, comprised of Treasury, the Council of Economic Advisors, and OMB. Troika 

develops the official economic assumptions for the President’s budget. Due to the reduction of 

nearly 25 percent in Economic Policy’s professional staff over the past several years, these 

additional demands have had significant impact on coverage within the office, resulting in 

reduced expertise in corporate finance, business investment, and state and local government 

finances. DO anticipates these sectors could present headwinds to the economy in the near and 

medium term, making it essential that the Department have the expertise in these areas. Two 

additional economists in the Macro office will support the analysis of these potential risks and 

support new legislation. 

Replacement of End of Life Servers +$3,341,000 / +0 FTE 

This funding represents DO SE’s portion of a larger project to replace servers that have now 

reached their end of life. Over the past several years, DO has prioritized its policy-related 

mission by restricting inflationary increases for DO management offices. These reductions have 

impacted all facets of management, to include the Office of the Chief Information Officer. 

April 2021 marks one year that DO’s workforce has been in a remote work environment due to 

the coronavirus pandemic. The challenges, weaknesses, and vulnerabilities of DO’s current 

infrastructure have been magnified in a way that may not have been apparent previously. 

Separately, the SolarWinds incident, which impacted the Treasury Department and other federal 

departments and agencies on a much broader level, has exacerbated an already tenuous situation. 

This is particularly acute with respect to Treasury’s server infrastructure. Over the past several 

months, several of DO’s servers have reached their end of life, and over 120 additional servers 

will reach end of life by FY 2022. If these servers are allowed to reach end of life, key IT 

infrastructure responsible for housing the data of vital programs used by every DO employee 

(e.g., email and virtual desktops), as well as data for critical national security programs, will be 

put at risk of failure or breach. 

DO has been able to negotiate extensions for some of these service contracts over the past few 

months, but this is at best a stopgap remedy. To present the most cost-effective, long-term 

solution, DO conducted several comprehensive studies to review its existing server infrastructure 

and application base. These assessments analyzed DO applications and workloads to determine 

their cloud suitability. Factors considered included: 

1) Suitability for migration to a cloud environment (i.e. whether the workload is elastic or if its 

migration presents any security concerns) 

2) Readiness to move to the cloud (i.e. understanding whether any remediation is required prior 

to migration), and 

3) Level of complexity (i.e. criticality of the business processes supported) 

Where applicable, legacy applications have already been pruned from servers to maximize server 

space. To continue supporting the key business processes afforded by these systems, any 
DOSE - 10 

modernization would need to be completed while simultaneously maintaining existing systems. 

Given complex requirements associated with upgrading or migrating Treasury servers to the 

cloud, this initiative is requested as part of DO’s multi-year funding authority. Treasury 

anticipates non-recurring some amount of this initial request in future years. 

IT Modernization +$7,484,000 / +0 FTE 

This funding represents DO SE’s portion of a larger project to modernize critical equipment and 

software that supports the DO workforce’s fundamental IT needs. Treasury leadership, over the 

past few years, made the conscious decision to focus investments and resources on DO’s policy 

mission. While appropriate at that point in time, focusing resources solely towards DO’s policy 

mission has come at the expense of DO’s support components and corporate infrastructure 

needs. This request would restore DO IT through key investments, including: 

1) End user equipment refreshes and enhancements to support a sustained telework 

posture. Many end user computing devices have reached the end of their useful life and 

require lifecycle replacement. Without a meaningful refresh, end user devices will fail, 

which will have an impact on staff productivity and ultimately impact Treasury’s ability to 

deliver on its mission. This refresh also encompasses equipment that would improve 

telework productivity for DO staff. DO recently conducted a survey of IT needs and 

satisfaction, and the single largest requirement set by users was for additional equipment to 

support their productivity in a remote environment. 

2) Redesign of Treasury’s intranet to improve user experience, site navigation, search 

capabilities and information architecture. DO has identified challenges with the current 

construct which impair users’ ability to find the information that they are looking for. The 

redesign and continuous improvement efforts will enable DO to align the intranet offering 

with industry best practices. These improvements should simplify actions, accelerate 

processing, and increase intranet performance collectively by > 20 percent, which should 

have a corresponding productivity impact on DO users when leveraging the site. 

3) Modernization of legacy applications/enhancement of existing applications. DO has a 

definitive need to retire legacy applications built on aged technologies to reduce 

cybersecurity risk, standardize low-code platform adoption, and realize operational 

efficiencies through common systems. DO also has identified technology gaps and business 

process automation opportunities which will be prioritized to shift staff focus from low to 

high value work. Similarly, this initiative will reduce the administrative burden on IT 

development staff through automation and common tool sets. DO plans to leverage this 

recurring funding to secure a dedicated agile development sprint team comprised of seven 

resources to continually improve the DO application portfolio. The remainder will be used to 

procure low-code software as a service (SaaS) licensing on which legacy applications will 

continue to be re-platformed. DO will prioritize legacy application modernization while 

integrating enhancements across mission support technologies (OSP Tracker, Nuvolo, 

Impress, etc.). 

4) Migration to managed remote access and remote desktop. DO’s current remote access and 

virtual desktop infrastructure were designed a decade ago and intended to support traveling 

staff as well as a small number of telecommuters for episodic telework and days where a 

large telework load would be supported for a day or two (such as inclement weather events). 

While hardware has been occasionally refreshed over the years, the underlying architecture 

has not changed over the past decade. This comes amid increased usage of telework 
DOSE - 11 

flexibilities over this same period, which necessitate a new posture. DO intends to migrate to 

a new managed remote access platform which leverages a similar solution to the one IRS has 

used for its 80,000 plus users during the pandemic. This should help DO to leverage IRS’s 

implementation lessons as well as reduce the Department’s overall attack surface area for 

cyber threats. Both the new managed remote access and virtual desktop infrastructure will 

provide DO with added resiliency, support greater swings in demand, and scalability which 

does not exist in our current posture.

Given complex requirements associated with upgrading or migrating Treasury servers to the 

cloud, this initiative is requested as part of DO’s multi-year funding authority. Treasury 

anticipates non-recurring some amount of this initial request in future years. 

Electric Vehicles and Associated Infrastructure +$304,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home 

and Abroad”, the U.S. Department of the Treasury joins in the Administration’s priority to 

develop a comprehensive plan to create good jobs and stimulate clean energy industries by 

revitalizing the Federal Government’s sustainability efforts. This includes Treasury’s 

commitment to use all available procurement authorities to augment its Department-wide fleet 

management program with a continued focus on the leasing of electric vehicles (EV) and 

purchasing, installing, and maintaining essential infrastructure. The planned resources will help 

Treasury comply with the requirements set forth by E.O. 14008 and reduce the carbon footprint 

of emissions into the atmosphere by acquiring an updated fleet of zero-emissions vehicles that 

can support mission operations. 

For FY 2022, Departmental Offices (DO) requests $304,000 to fund the eventual full conversion 

of its fleet to EV. Of that money, approximately $25,000 will be allocated to support the 

purchase, installation, maintenance, and/or upgrade of infrastructure required to maintain an EV 

fleet management program. It is expected that DO will need one additional charging station to 

support its future EV state. Currently, DO has a total of 14 vehicles in its fleet, of which five are 

EVs. 
DOSE - 12 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 95,439 111,194 130,742 

11.3 - Other than full-time permanent 1,362 1,760 1,760 

11.5 - Other personnel compensation 3,160 2,535 2,535 

11.5 - Overtime 892 0 0 

11.8 - Special personal services payments 20 0 0 

11.9 - Personnel Compensation (Total) 100,873 115,489 135,037 

12.0 - Personnel benefits 32,139 33,489 39,562 

13.0 - Benefits for former personnel 175 0 0 

Total Personnel and Compensation Benefits $133,187 $148,978 $174,599 

21.0 - Travel and transportation of persons 2,398 2,754 3,802 

22.0 - Transportation of things 572 181 167 

23.1 - Rental payments to GSA 0 346 0 

23.2 - Rental payments to others 1,820 699 1,378 

23.3 - Communications, utilities, and miscellaneous charges 28 231 97 

24.0 - Printing and reproduction 2 44 0 

25.1 - Advisory and assistance services 14,035 26,219 21,084 

25.2 - Other services from non-Federal sources 2,005 2,007 2,151 

25.3 - Other goods and services from Federal sources 82,007 70,350 86,224 

25.4 - Operation and maintenance of facilities 116 0 109 

25.7 - Operation and maintenance of equipment 211 1,476 239 

26.0 - Supplies and materials 2,227 3,518 2,608 

31.0 - Equipment 2,315 2,177 2,166 

32.0 - Land and structures 4,438 1,120 2,045 

Total Non-Personnel $112,174 $111,122 $122,070 

Total Obligations $245,361 $260,100 $296,669 

 

Full-time Equivalents (FTE) 677 766 875 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. Table also includes 

actuals and projections associated with funding provided by the CARES Act for SBA-loan support. 

 
DOSE - 13 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Departmental Offices including 

operation and maintenance of the Treasury Building and 

Freedman's Bank Building; hire of passenger motor vehicles; 

maintenance, repairs, and improvements of, and purchase of 

commercial insurance policies for, real properties leased or owned 

overseas, when necessary for the performance of official business; 

executive direction program activities; international affairs and 

economic policy activities; domestic finance and tax policy 

activities, including technical assistance to State, local, and 

territorial entities; and Treasury-wide management policies and 

programs activities, [$233,000,000] $270,669,000: 

Provided, That of the amount appropriated under this heading- 

(1) not to exceed $350,000 is for official reception and 

representation expenses; 

(2) not to exceed $258,000 is for unforeseen emergencies of a 

confidential nature to be allocated and expended under the 

direction of the Secretary of the Treasury and to be accounted for 

solely on the Secretary's certificate; and 

(3) not to exceed [$24,000,000]$34,000,000 shall remain available 

until September 30, [2022] 2023, for— 

(A) the Treasury-wide Financial Statement Audit and Internal 

Control Program; 

(B) information technology modernization requirements; 

(C) the audit, oversight, and administration of the Gulf Coast 

Restoration Trust Fund; 

(D) the development and implementation of programs within the 

Office of Cybersecurity and Critical Infrastructure Protection, 

including entering into cooperative agreements; 

(E) operations and maintenance of facilities; and 

(F) international operations. (Consolidated Appropriations Act, 

2021, Public Law 116-260)

 

E – Legislative Proposals 

Departmental Offices Salaries and Expenses has no legislative proposals. 
DOSE - 14 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Departmental Offices (DO) is Treasury’s headquarters bureau. It provides leadership in 

economic and financial policy, financial intelligence, and general management. Treasury utilizes 

effective management, policies, and leadership to protect our national security through targeted 

financial actions, promote the stability of the nation’s financial markets, and ensure the 

government’s ability to collect revenue and fund its operations. 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

B – Budget and Performance by Budget Activity 

2.1.1 – Executive Direction Resources 

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $36,988 $36,980 $32,993 $35,407 $36,775 $37,333 $49,020 

Reimbursable Resources $29,632 $22,997 $25,455 $4,863 $1,837 $2,416 $2,080 

Budget Activity Total $66,620 $59,977 $58,448 $40,270 $38,612 $39,749 $51,100 

Full-time Equivalents (FTE) 201 161 159 113 102 114 152 

FY 2016 - FY 2020 Other Resources dollars are actuals. FY 2016 - FY 2020 FTE are actuals. 

The table does not reflect the proposed move of the Office of Consumer Policy from the Executive Direction budget activity to Domestic Finance 

& Tax Policy

Executive Direction Budget and Performance 

($49,020,000 from direct appropriations, $2,080,000 from reimbursable sources) 

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

rest of Treasury and interacts with Congress and the public on policy matters. 

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

of these offices is captured within the other budget activities. 

 
DOSE - 15 

2.1.2 – International Affairs and Economic Policy Resources and Measures 

FY 2016 - FY 2020 Other Resources dollars are actuals. FY 2016 - FY 2020 FTE are actuals. 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

IA - Monitor Quality and Enhance 

Effectiveness of International Monetary 

Fund (IMF) Lending Through Review 

of IMF Country Programs 

100 100 100 100 100 100 100 100 

IA - Monitor Quality and Enhance 

Effectiveness of MDB Lending 

Through Review of MDB Grant and 

Loan Proposals 

100 100 100 100 100 100 100 100 

IA - Percentage of MDB Grant and 

Loan Proposals Containing Satisfactory 

Frameworks for Results Measurement 

89 96 97.6 95 96 95 95 95 

OTA - Program Engagement 3.9 4 3.8 3.8 3.3 3.6 3.6 3.6 

International Affairs Description of Performance: 

 Monitor Quality and Enhance Effectiveness of IMF Lending through Review of IMF 

Country Programs: This measure tracks efforts by IA staff to monitor the quality of IMF 

country programs and ensure the application of appropriately high standards for the use of 

IMF resources. The target (100 percent) was met in FY 2020. In FY 2021 and FY 2022, 

IA’s target for this measure remains 100 percent. 

 Monitor Quality and Enhance Effectiveness of MDB Lending through Timely Review of 

MDB Grant and Loan Proposals: IA reviews MDB loan and grant proposals to ensure that 

funded projects meet several key goals, which include supporting long-term U.S. objectives, 

having a measurable development impact, and being consistent with congressional mandates. 

The target (100 percent) was met in FY 2020. In FY 2021 and FY 2022, IA aims to continue 

its review of 100 percent of MDB loan and grant proposals prior to the date of the relevant 

Executive Board meeting and increase its oversight of projects during implementation. 

 Percentage of MDB Grant and Loan Proposals Containing Satisfactory Frameworks for 

Results Measurement: This measure tracks the percentage of grant and loan project proposals 

that contain a satisfactory framework for measuring project results (such as outcome 

indicators, quantifiable and time-bound targets, etc.) This information is measured on an 

annual basis. In FY 2020, 96 percent of MDB grant and loan project proposals had excellent 

or satisfactory ratings for the results matrices. The FY 2021 target is 95 percent, and the FY 

2022 target is 95 percent. 

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $56,886 $57,191 $48,460 $52,428 $52,825 $53,661 $62,827 

Reimbursable Resources $14,680 $10,617 $9,795 $2,701 $1,293 $491 $494 

Budget Activity Total $71,566 $67,808 $58,255 $55,129 $54,118 $54,152 $63,321 

Full-time Equivalents (FTE) 262 253 220 161 178 182 200 
DOSE - 16 

 Office of Technical Assistance Description of Performance: 

 Office of Technical Assistance (OTA) Program Engagement (Traction): Measures the degree 

to which foreign counterparts are engaging proactively and constructively with OTA 

advisors, at the working and policy levels. Counterpart engagement is both a key outcome of 

OTA efforts to structure and execute effective technical assistance projects that support host 

country ownership. The result for FY 2020 is 3.3, a reduction of 0.5 from the FY 2019 result 

and a reduction of 0.3 from the FY 2020 target of 3.6. This result reflects the challenges of 

achieving and maintaining traction with foreign counterparts during the COVID-19 

pandemic, which forced OTA to provide assistance remotely, instead of engaging with 

counterparts in-person per OTA’s typical approach for providing technical assistance. 

International Affairs and Economic Policy Budget and Performance 

($62,827,000 from direct appropriations, $494,000 from reimbursable sources) 

The offices in this budget activity promote economic growth in the U.S. by producing technical 

economic analyses for the Secretary and advancing U.S. economic and financial policy priorities 

around the world. 

Office of International Affairs (IA) 

International Affairs 

In FY 2020 Treasury’s Office of International Affairs (IA) worked to ensure the most favorable 

external environment for sustained economic growth, job creation, and financial stability in the 

United States. IA promotes U.S. exports and job growth by encouraging key trading partners to 

pursue macroeconomic policies that address the COVID pandemic, shift to boosting domestic 

demand, move towards market-determined exchange rates, and create a level playing field for 

American firms and workers. IA also promotes robust international financial regulatory 

standards and multilateral solutions to international development, including addressing global 

challenges such as food security, debt sustainability, clean energy access, and the environment. 

Over the past year IA has been particularly focused on global economic recovery from the 

coronavirus pandemic. IA is playing a leading role in the Administration’s Climate Finance 

Plan and taking steps to tackle climate change globally. 

In FY 2020 IA played an important role ensuring that China followed through on its Phase One 

trade agreement commitments, particularly with regards to financial services and currency 

matters. IA also worked with the Office of the U.S. Trade Representative in finalizing two trade 

agreements—the U.S.-Mexico Canada Agreement (USMCA) and the U.S.-Japan Trade 

Agreement. IA played a critical role in negotiating financial services commitments in the 

USMCA and the U.S.-Japan Digital Trade Agreement, including prohibiting data localization in 

financial services to support regulatory and oversight efforts. In the USMCA, IA also negotiated 

the chapter on Macroeconomic Policies and Exchange Rate Matters, with new policy and 

transparency commitments on currency issues. 

As the lead U.S. agency in negotiating reductions of export finance subsidies, Treasury continues 

to press China and other major providers of export finance to agree to disciplines on government 

support so that U.S. exporters can compete globally on a level playing field. These efforts serve 

not only to enhance U.S. competitiveness but also move export credit financing to a more 
DOSE - 17 

market-reflective basis consistent with Congressional mandates. IA works to address the large 

and persistent global imbalances and unfair currency practices that threaten strong and 

sustainable U.S. economic growth. Treasury seeks to level the playing field for U.S. businesses 

through multilateral and bilateral engagements on foreign exchange practices and does this via 

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

the Group of 20 Nations (G20). 

Treasury IA continues its close oversight of multilateral development bank (MDB) policies and 

programs and continues to promote reforms to further enhance their efficiency, effectiveness, 

and financial discipline. IA promotes economic growth by managing U.S. participation and 

leveraging U.S. leadership positions in the International Financial Institutions in order to mitigate 

emerging threats to the U.S. and global economies; support international trade and investment; 

and reinforce U.S. national security interests in key countries around the world. These 

institutions will play a significant role in Treasury’s approach to the climate goals. 

Office of Technical Assistance 

Treasury’s Office of Technical Assistance (OTA) complements Treasury’s international 

economic and terrorist financing policy work. Treasury’s offices of International Affairs and 

Terrorism and Financial Intelligence advocate for improvements in economic and terrorist 

financing policies internationally. OTA helps the governments of developing and transitioning 

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

Office of Economic Policy (EP) 

Macroeconomic Analysis 

During the past year, staff in the Office of Macroeconomic Analysis closely monitored U.S. 

economic performance. The office’s analytic updates served as Senior Leadership’s main 

internal information source on U.S. macroeconomic developments. The Macro Office served on 

a wide range of high-level engagements and official publications, including the Bank/Fund and 

regional development bank meetings, meetings of the G-7 and G-20, the Quarterly Treasury 

Bulletin, the report to Congress titled, “Foreign Exchange Policies of Major Trading Partners of 

the U.S.,” the Economy Statement for the Treasury Borrowing Advisory Committee, and the 

U.S. Government’s Annual Financial Report. In addition, economists in the Macro office help 

prepare the economic assumptions used to create the Administration’s Budget. 

 

The office continued to deliver the High-Quality Market Corporate Yield Curve (a set of daily 

rates issued on a monthly basis) as mandated under the Pension Protection Act and to produce a 

Treasury Real Coupon-Issue Yield Curve, a companion to the Treasury Nominal Coupon-Issue 

Yield Curve, in addition to several other yield curves. These yield curve data are used 

extensively throughout the private sector and executive agencies that administer private and 

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

Microeconomic Analysis 

The Office of Microeconomic Analysis has played a central role in the federal economic 

response to the pandemic and has continued its core role of aiding the Administration’s 
DOSE - 18 

development of broader economic policy on a wide range of topics. Activities over the past year 

have included:

 Drafting a framework for the prior Administration’s economic response to the pandemic. 

 Principle contributions to the design, and management for Treasury, of the Paycheck 

Protection Program, including subsequent analysis of program outcomes and potential 

legislative changes. 

 Generating ongoing reporting and in-depth analyses of the economic impact of the pandemic 

on individuals and firms. 

 Advising on unemployment insurance and other labor market support policies. 

 Detailing morbidity and mortality risk by income and race and impacts on health insurance 

coverage and on the financial status of health care providers. 

 In-depth reporting on the impact of the pandemic on state and local government finances. 

 Providing significant input into the development of ARP programs, including technical 

assistance to congressional staff. 

 Substantial ongoing CARES/ARP implementation work on grant allocation formula design 

and data analysis. 

 Drafting a congressionally mandated report on financial transaction taxes. 

 Ongoing coordination and analysis related to the Secretary’s role as Managing Trustee of the 

Social Security and Medicare Trust Funds. 

Social Impact Partnerships to Pay for Results Act 

Economic Policy is also responsible for implementation and ongoing management of the Social 

Impact Partnerships to Pay for Results Act (SIPPRA) program. SIPPRA, signed into law on 

February 9, 2018, appropriated $100 million to fund social impact partnership projects and 

feasibility studies to prepare for such projects. Program funds may be obligated through 

February 8, 2028, and not less than fifty percent of funding for social impact partnership projects 

must be provided for initiatives that directly benefit children. The SIPPRA program aspires to 

demonstrate a new model of implementing and funding projects designed to solve entrenched 

societal problems such as homelessness, recidivism among juvenile offenders, and incidences of 

childhood abuse and neglect. 

 

SIPPRA issued its first Notice of Funding Availability (NOFA) for demonstration projects on 

February 21, 2019. Of the twenty-one applications received and evaluated by Treasury staff and 

subject matter expert panels, eight applications were recommended by the Commission on Social 

Impact Partnerships to the Treasury Secretary for funding and to the Federal Interagency Council 

on Social Impact Partnerships for application certification. All eight applications were certified, 

and one applicant has since dropped out. Treasury, the Department of Labor, and the New York 

State Energy and Research Development Authority entered into SIPPRA’s first agreement for a 

social impact partnership project in March 2021. Treasury is taking the necessary statutory steps 

to finalize the awards for the remaining applications. Treasury anticipates issuing an additional 

project NOFA in FY 2022. 
DOSE - 19 

2.1.3 – Domestic Finance and Tax Policy Resources and Measures 

Notes: FY 2016 - FY 2020 Other Resources dollars are actuals. FY 2016 - FY 2020 FTE are actuals. 

The table does not reflect the proposed move of the Office of Consumer Policy from the Executive Direction budget activity to Domestic Finance 

& Tax Policy 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

DF-Variance Between Estimated and 

Actual Receipts (Annual Forecast) (%) 3.1 4 2.33 2.5 11.1 4.25 N/A 4.25 

Domestic Finance Description of Performance: 

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

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

Fiscal Projections (OFP) forecasts net cash flows (e.g., federal receipts and outlays) to ensure 

that adequate funds are available daily to cover federal payments. To determine its overall 

effectiveness, one of OFP’s metrics is to measure the variance between actual and projected 

federal receipts. A lower variance is better because that indicates a more accurate forecast. 

However, as a result of the economic impact of the COVID-19 outbreak and the legislative 

and regulatory response, the timing and level of receipts were highly unpredictable in the 

second half of the fiscal year. While the actual variance for the first half of FY 2020 was 2.9 

percent, the actual variance for the full fiscal year was 11.1 percent, compared to the 4.25 

percent target. The FY 2020 level was also significantly higher than the mean error of the 

prior ten years preceding the COVID-19 outbreak (2010 - 2019), which was 3 percent. Due to 

the potential ongoing uncertainty surrounding the iteming and level of receipts in FY 2021 

due to the continuing COVID-19 pandemic, Departmental Offices has suspended 

identification of the numeric metric for FY 2021. 

Domestic Finance and Tax Policy Budget and Performance 

($90,658,000 from direct appropriations, $8,425,000 from reimbursable sources): 

The Offices of Domestic Finance and Tax Policy monitor policy, legislation, and regulations, 

and provide advice and assistance to the Secretary about the financial services sector and taxes, 

as well as financial markets and the regulation of financial institutions. The Office of Tax Policy 

supports the Administration’s efforts in tax reform legislative proposals and regulatory 

implementation. 

Office of Domestic Finance (DF) 

Treasury Departmental Office Coronavirus Relief, Response, Aid, and Recovery Programs 

Treasury administers multiple relief and recovery programs authorized through the Families First 

Coronavirus Response Act (FFCRA), Coronavirus Aid, Relief, and Economic Security Act 

(CARES), Consolidated Appropriations Act (CAA), 2021, and the American Rescue Plan Act 

Dollars in 

Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $84,591 $83,104 $73,804 $72,570 $78,153 $79,566 $90,658 

Reimbursable Resources $55,231 $38,650 $42,042 $8,539 $7,042 $8,010 $8,425 

Budget Activity Total $139,822 $121,754 $115,846 $81,109 $85,195 $87,576 $99,083 

Full-time Equivalents (FTE) 398 365 311 236 245 259 284 
DOSE - 20 

(ARP). The responsibilities that have been assigned to the Treasury Department are central to the 

Administration’s overall relief and recovery agenda. They offer unique opportunities to secure a 

robust, equitable recovery through tools including state and local aid, rental assistance to 

struggling tenants, help for homeowners facing foreclosure, and the provision of capital to 

communities that have traditionally been left behind. 

The CARES Act provided Treasury Departmental Offices additional appropriations to support 

the Small Business Administration Paycheck Protection Program. 

 Paycheck Protection Program: The Paycheck Protection Program is providing small 

businesses with the resources they need to maintain their payroll, hire back employees who 

have been laid off, and cover overhead. 

Additionally, the Treasury Departmental Offices provide administrative support to the 

following programs: 

 Economic Impact Payments: 

These payments, which provide relief to the American people, including those residing in the 

U.S. territories, include the 2020 and 2021 recovery rebate credits, including the advance 

Economic Impact Payments of those credits, enacted in Section 2201 of the CARES Act, 

Section 272 of the CAA, 2021, and Section 9601(a) of the ARP. 

 Economic Stabilization Program: 

The CARES Act (P.L. 116–136) authorized the Department of the Treasury to make up to 

$500 billion in loans and other investments in support of and to provide liquidity to eligible 

businesses, nonprofits, states, and municipalities impacted by the COVID-19 pandemic. The 

Consolidated Appropriations Act, 2021 (P.L. 116–260) rescinded this authority, though any 

loans and investments already made will remain active until obligations are fully liquidated. 

 Payroll Support Program; Air Carrier Worker Support & Pandemic Relief for Aviation 

Workers; Transportation Services:

The CARES Act, Section 4112, CAA, 2021 Division N Section 402, and the ARP, Section 

7301 each authorized the Secretary of the Treasury to provide financial assistance to the 

aviation industry for the continued payment of employee wages, salaries, and benefits. The 

CARES Act provided for financial assistance to passenger air carriers, cargo air carriers, and 

airline contractors. The two subsequent laws provided for additional financial assistance only 

for passenger air carriers and airline contractors. 

 Transportation Services: 

The CAA, 2021 Section 421 authorized the Secretary of the Treasury, in consultation with 

the Secretary of Transportation, to make grants available to eligible providers of 

transportation services that were negatively impacted by the coronavirus pandemic. This 

includes, but is not limited to, eligible companies providing charter, local, commuter, school, 

and tour bus services and eligible small passenger vessels (as defined in 46 U.S.C 85, 116, 

and 2101). 

 Coronavirus Relief Fund: 

The CARES Act, Section 5001, as amended by the CAA, 2021 Section 1001, and the ARP, 

Section 9901, amended the Social Security Act (42 U.S.C. 301 et seq.) to authorize the 
DOSE - 21 

Secretary of the Treasury to make payments to states, territories, tribal governments, and 

units of local government to assist with expenditures related to, as well as to mitigate the 

fiscal effects stemming from, the coronavirus pandemic. 

In addition, the ARP established a Coronavirus Capital Projects Fund and a Local Assistance 

and Tribal Consistency Fund. The Coronavirus Capital Projects Fund provides $10 billion in 

payments to states, territories, and tribal governments to carry out critical capital projects 

directly enabling work, education, and health monitoring, including remote options, in 

response to the coronavirus pandemic. The Local Assistance and Tribal Consistency Fund 

provides $2 billion in payments to eligible revenue sharing counties and eligible tribal 

governments for any governmental purpose other than lobbying activity to be obligated in 

FYs 2022 and 2023. 

 Homeowner Assistance Fund: 

The ARP, Section 3206, established the Homeowner Assistance Fund to mitigate financial 

hardships associated with the coronavirus pandemic by providing funds to states, territories, 

tribes, and other eligible entities in order to prevent homeowner mortgage delinquencies, 

defaults, foreclosures, loss of utilities or home energy services, displacements, and postforeclosure evictions.

 Emergency Rental Assistance Program: 

The CAA, 2021 Division N Section 501 established the Emergency Rental Assistance fund 

to provide payments to states, territories, tribes, localities, and other eligible entities to 

provide financial assistance and housing stability services to eligible households. These 

services may include the payment of rent, rental arrears, and utilities and home energy costs 

for a specified period of time. The ARP, Section 3201 provided for additional assistance and 

expanded housing stability services, in addition to allocating a subset of the funds 

specifically for high-need grantees in FY 2022 and FY 2023. 

 State Small Business Credit Initiative (SSBCI): 

The ARP, Section 3301 amends the State Small Business Credit Initiative Act of 2010 (12 

U.S.C. 4701 et seq.) in order to re-establish the State Small Business Credit Initiative and 

provide funds to states and tribal governments through September 29, 2030. The overall 

purpose of this account is to provide support to small businesses responding to and 

recovering from the economic effects of the coronavirus pandemic, ensure business 

enterprises owned and controlled by socially and economically disadvantaged individuals 

have access to credit and investments, and provide technical assistance to help small 

businesses applying for various support programs. 

For additional information pertaining to Treasury’s COVID-19 related programs refer to the 

Treasury Coronavirus Relief, Response, Aid, and Recovery Programs chapter.

Financial Sector Cybersecurity and Critical Infrastructure Protection 

The Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) executes 

Treasury’s role as SRMA for the financial services sector, a designated critical infrastructure 

sector. OCCIP executes this role in the All-Hazards environment. These hazards include 

cyber and physical threats, terrorism, and man-made or climate-related natural 

disasters. Treasury works closely with a wide variety of partners, including individual firms, 
DOSE - 22 

federal financial regulators and associations of state, industry groups, law enforcement, the 

intelligence community, homeland security officials, and also internationally, to improve the 

operational security and resilience of U.S. critical financial infrastructure. OCCIP has 

developed particularly strong relationships with the financial regulators, through its leadership 

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

services sector, through the Financial Services Sector Coordinating Council (FSSCC), and 

with foreign counterparts both through the G7 Cyber Expert Group (CEG), which Treasury 

co-chairs with the Bank of England, and through bilateral engagement with partners to 

coordinate strategic initiatives and share information around risks to operational continuity. 

OCCIP has worked closely with the interagency to represent Treasury as part of international 

whole-of-government activities, including capacity building and deterrence. Leveraging these 

partnerships, OCCIP conducted or led the financial sector’s participation in 8 cybersecurity 

exercises, developed and shared 7 cybersecurity alerts, and coordinated the financial sector 

response to 29 incidents in FY 2020. 

Financial Data Access and Use 

During FY 2020, Treasury continued its leadership to increase the access to and use of federal 

financial data to strengthen government-wide decision-making, transparency, and 

accountability. Treasury continued to make progress in government-wide implementation of 

the 2014 Digital Accountability and Transparency Act (DATA Act). The DATA Act requires 

the federal government to provide consistent, reliable, and useful online data about how it 

spends taxpayer dollars. In July 2020, Treasury launched Fiscal Data 

(https://fiscaldata.treasury.gov/), which brings together 30 datasets in a modernized format for 

the public in a central location. In August 2020, Treasury also released new features to 

highlight government-wide spending funded by COVID-19 supplemental appropriations. 

These new features allowed users to identify contracts, grants, loans, and other financial 

assistance that were funded by the CARES Act and other COVID-19 appropriations, and also 

presented summary-level information on how much money had been spent across the 

government. The Data Lab (https://datalab.usaspending.gov/federal-covid-funding/) also 

launched an analysis tracking funding related to each individual appropriation, and provided 

broader context on the macroeconomic effects of the legislation. DF will work with OMB and 

federal agencies to drive continued improvements in FY 2021. 

Combating Climate Change 

Treasury is advancing initiatives to increase climate ambition, promote measurement, 

monitoring, and mitigation around climate-related financial risks, encourage sustainable finance, 

and foster a strong, green recovery. Treasury will stand up a “climate hub” within the 

Department to coordinate Treasury’s efforts. Secretary Yellen has already raised awareness 

domestically and re-engaged with international partners on key climate change issues. 

Serving Historically Underrepresented and Underserved Groups 

Treasury is endeavoring to better serve historically underrepresented and underserved groups 

through increased policy focus and outreach to institutions including community-based 

organizations, civil rights organizations, community development financial institutions, and 

minority depository institutions. Further, Treasury is working to improve its ability to 

quantitatively study and monitor efforts to measure and advance equity consistent with EO 
DOSE - 23 

13985, Advancing Racial Equity and Support for Underserved Communities Through the 

Federal Government and EO 13988, Preventing and Combating Discrimination on the Basis 

of Gender Identity or Sexual Orientation.

Treasury Workforce Management 

Treasury is dedicated to hiring a diverse workforce with the competences necessary to 

accomplish our mission. Treasury believes that such diversity will foster a culture of innovation, 

which in turn will better allow Treasury to achieve our strategic goals. 

Transition from USD LIBOR 

Though the London Interbank Offer Rate (LIBOR) is used in more than $200 trillion of financial 

contracts, most tenors of LIBOR will cease being published at the end of 2021, with the 

remainder ceasing publication by June 2023. LIBOR’s widespread use in the financial system 

but short remaining lifespan underscores the importance of a timely and effective transition. In 

recent years, Treasury has played an active role in highlighting the risks associated with the 

continued use of LIBOR and encouraging a market participant-led transition. Since 2013, annual 

reports of the Financial Stability Oversight Council, which the Treasury Secretary chairs, have 

called attention to LIBOR-related financial stability risks. Treasury has served as an ex officio 

member of the Alternative Reference Rates Committee (ARRC) since that group was convened 

by the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New 

York in 2014. The ARRC is composed of a diverse set of private-market participants working 

towards a successful transition away from LIBOR. As an alternative to LIBOR, the ARRC has 

recommended the Secured Overnight Financing Rate (SOFR), which is a robust rate based on 

nearly $1 trillion in daily transactions. The ARRC has also recommended robust contract 

fallback language for various financial products and worked closely with regulators to identify 

and tackle potential roadblocks to transition. 

Housing Finance Reform 

Treasury has had a significant financial interest in the U.S. housing finance system since 2008, 

when the GSEs were placed into conservatorship and subsequently entered into Senior Preferred 

Stock Purchase Agreements (PSPAs) with Treasury. Twelve years later, the GSEs remain in 

conservatorship, and Congress has not yet enacted legislation to define the GSEs' long-term role 

in the housing finance system. As a party to the PSPAs, Treasury has a key role in shaping, and 

a key interest in the outcome of, housing finance reform. Treasury has a responsibility to 

monitor its investments in the GSEs while the PSPAs remain in place, and Treasury holds 

significant equity interests in the GSEs. The Administration is committed to housing finance 

policy that expands fair and equitable access to homeownership and affordable rental 

opportunities, protects taxpayers, and promotes financial stability, and stands ready to work with 

Congress in support of these goals. 

Debt Management

Another important DF responsibility is managing the U.S. government’s debt. The Office of 

Fiscal Projections (OFP) forecasts the government’s cash and debt activity. Another DF office, 

the Office of Debt Management (ODM), seeks to finance the federal government at the least cost 

to the taxpayer over time by working to maintain predictable issuance of Treasury debt, 

minimizing the amount of interest the government must pay, and managing debt maturity over 
DOSE - 24 

time. In FY 2020, Treasury re-introduced the 20-year Treasury bond to meet investor demand 

and expand Treasury’s financing capacity. In addition, in response to the government’s fiscal 

response to the outbreak of COVID-19 in March 2020, ODM financed an unprecedented 

increase in borrowing over FY 2020, overseeing $18.6 trillion in gross security issuance and $4.0 

trillion in net issuance. Borrowing needs are likely to remain elevated for the foreseeable future. 

Office of Tax Policy (OTP) 

Tax Policy 

Tax is central to addressing all major Administration priorities including COVID relief/recovery, 

climate change, income inequality, and race and gender equity. Improving OTP resources in 

order to provide research-informed policy inputs, legislative proposals, and technical regulatory 

advice are necessary for the Administration’s success in multiple topic areas.

OTP continues to provide leadership for the Organization for Economic Co-operation and 

Development (OECD), the Inclusive Framework, the Global Forum, and the G20, advocating for 

the interests of the United States. In particular, during FY 2020, OTP played a leading role in 

advancing progress on OECD proposals (Pillar 1 and Pillar 2) intended to reform existing rules 

for the allocation of international taxing rights and the development of a global minimum tax 

through OECD endorsed Blueprints. Further, OTP supports efforts by Treasury and the United 

States Trade Representative to combat unilateral discriminatory digital services taxes targeted at 

U.S.-parented firms. As part of these efforts, OTP attended and led numerous meetings (actual 

and virtual) at the OECD and with other stakeholders in FY 2020. OTP plans to continue this 

effort in FY 2021 with a greater focus on developing a global minimum tax. 

OTP assisted with the implementation of the Economic Impact Payments (EIP). In FY 2020, 

under the CARES Act, more than 160 million EIPs totaling more than $270 billion were issued. 

The CAA, 2021 authorized a second round of EIPs. In FY 2021, OTP assisted with the issuance 

of more than 147 million EIP2s and, as of May 12, 2021, have continued to assist with the 

issuing of approximately 165 million EIP3s. In total, as of May 2021, over 472 million EIPs 

have been disbursed during FY 2020 and FY 2021. 

In November 2020, OTP worked with the IRS to conduct outreach to non-filers who could be 

eligible to receive an EIP. Using information from 1.5 billion returns, OTP winnowed down 

returns to a list of approximately 9 million potential eligible non-filers who could receive an EIP. 

These individuals received an outreach letter from the IRS which provided instructions to receive 

an EIP. This effort successfully helped many vulnerable households and individuals receive 

much needed economic relief. 

In FY 2020, OTP also continued to work on healthcare projects. Specifically, OTP: 

 Evaluated and approved three new Affordable Care Act Section 1332 Waivers and continued 

to implement and monitor 13 already-approved state waivers; provided $1.3 billion to states 

to implement these waivers. 

 Proposed a regulation to provide states guidance and further details on the implementation of 

Affordable Care Act State Innovation Waiver statute. 
DOSE - 25 

 Developed a complex microsimulation model to estimate the revenue effects of health policy 

changes, model projects impact on individuals’ health insurance status, cost of health 

insurance premiums in the employer and individual markets, and subsequent changes in tax 

revenue. 

2.1.4 – Treasury-wide Management and Programs Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $41,446 $43,365 $40,716 $39,171 $38,279 $39,779 $43,608 

Reimbursable Resources $3,339 $4,284 $2,398 $226 $127 $83 0 

Budget Activity Total $44,785 $47,649 $43,114 $39,397 $38,406 $39,862 $43,608 

Full-time Equivalents (FTE) 124 153 147 100 92 112 119 

FY 2015 - FY 2020 Other Resources dollars are actuals. FY 2015 - FY 2020 FTE are actuals. 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Percent of Procurement Dollars Spent 

on Small Business 36.17 35.01 42.63 40.4 46.14 39 36 40 

Treasury-wide Employee Engagement 

Index of the Federal Employee 

Viewpoint Survey (FEVS) 

67 68 68 69 75 70 75 77 

Treasury-wide Footprint (Square 

Footage) 34,894 34,100 33,766 33,209 32,517 32,895 32,341 31,948 

Treasury-wide Leaders Lead Index of 

the Federal Employee Viewpoint Survey 

(FEVS) 

55 56 56 58 65 59 65 67 

Treasury-Wide Management and Program Description of Performance:

 Percentage of Procurement Dollars Spent on Small Business: Based on preliminary data in 

FY 2020, Treasury met or exceeded four out of five small business prime contracting goals. 

Treasury did not meet its Historically Under-utilized Zone (HUBZone) small business goal. 

Treasury did not meet four out of five small business subcontracting goals. All Treasury 

bureaus were included in the Small Business Goaling Report, with no exclusions. The 

FY 2020 overall small business goal in FY 2020 was set for 39 percent, and Treasury 

exceeded the goal at 46 percent. The FY 2021 small business goal is set at 36 percent and 

the tentative target for FY 2022 is 40%. One overarching challenge in FY 2020 to meet the 

HUBZone small business goal was that Treasury had competing priorities: 1) OMB’s 

directive to utilize Category Management principles and Best-in-Class (BIC) contracts to 

leverage existing government-wide contracting vehicles, where there is a lack of sufficient 

HUBZone small business firms available for use, and 2) the COVID-19 pandemic 

contracting response, where there are not enough HUBZone small businesses with 

capabilities that meet the COVID-19 requirements. Particularly noteworthy is that Treasury 

far exceeded the small business contracting goals for the following socioeconomic groups: 
DOSE - 26 

o Small and Disadvantaged Business – goal 5.0 percent, achieved 8.9 percent; 

o Women Owned Small Business – goal 5.0 percent, achieved 9.1 percent; and 

o Service Disabled Veteran Owned Small Business – goal 3.0 percent, achieved 3.2 

percent. 

Treasury did not meet the small business contracting goal for the following 

socioeconomic group: 

o Historically Under-utilized Zone (HUBZone) Small Business – goal 3.0 percent, 

achieved 2.5 percent. 

 Treasury-wide “Employee Engagement” Index of Federal Employee Viewpoint Survey 

(FEVS): Treasury’s strategy remained focused on improving employee engagement by 

investing resources in statistically high impact areas to create an opportunity to improve the 

effectiveness of our workforce while improving our ranking among other federal agencies. 

Treasury’s scores for the Engagement Index increased from 69 percent to 75 percent in 

FY 2020. Treasury’s engagement score exceeded the government-wide average and the 

average score for very large agencies by three percent. Targets are 75 percent for FY 2021 

and 77 percent for FY 2022. 

 Treasury-wide Footprint (Square Footage): This goal measures the total square footage 

occupied by Treasury’s owned and leased buildings. To reduce the Department’s real 

property footprint and maximize the use of existing real property assets, the Department 

maximized space utilization by undertaking space realignments, consolidations, and 

improved workstation standards. The Department will continue targeting metropolitan areas 

with multiple posts of duty sites to pursue consolidation opportunities or space reductions 

where it makes business and financial sense. 

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

similar techniques, Treasury also set the goal to increase the “Leaders Lead” index above 

FY 2019 results. Treasury’s score for the Leaders Lead Index increased from 58 percent in 

FY 2019 to 65 percent in FY 2020, reaching the OPM established 65 percent benchmark for 

an organizational strength. Treasury’s score in FY 2020 exceeded the government-wide 

average by three and the average score for very large agencies by four percent. Targets are 

65 percent for FY 2021 and 67 percent for FY 2022. 

Treasury-wide Management and Programs Budget and Performance 

($43,608,000 from direct appropriations, $0 from reimbursable sources): 

This budget activity includes offices that are responsible for the internal management and policy 

of the Department: the Office of the Assistant Secretary for Management; the Office of the Chief 

Information Officer; the Office of Privacy, Transparency, and Records; the Office of the Senior 

Procurement Executive; the Office of the Chief Human Capital Officer; the Office of Treasury 

Operations; the Office of the Deputy Chief Financial Officer; the Office of Civil Rights and 

Diversity; the Office of Minority and Women Inclusion; the Office of Strategic Planning and 

Performance Improvement; the Office of Risk Management; the Office of the Chief Data 

Officer; and the Office of the Deputy Assistant Secretary for Management and Budget. 

Office of the Chief Human Capital Officer 

In FY 2020, Treasury completed implementation of the Learning Management (LMS) module 

into the Treasury Integrated Talent Management (ITM) system for all bureaus, covering over 

120,000 federal and contractor employees. This consolidation of multiple systems resulted in a 
DOSE - 27 

10 percent cost savings (versus FY 2016 baseline), new system functionality, and the capability 

to deploy high-impact, Treasury-wide learning programs such as the Treasury Leadership 

Development Program, Digital Transformation, and Data Literacy online curricula that were 

launched in FY 2020 and started by 7,241 participants from across the agency. In addition, five 

bureaus successfully deployed the ITM performance module to replace legacy electronic and 

paper-based systems covering over 8,000 employees. This included unifying the performance 

management systems of all Departmental Offices staff under one electronic system for the first 

time in history. An additional four bureaus successfully completed performance pilots that will 

guide their full deployment in FY 2021/22. Finally, Treasury successfully launched several 

demonstration projects for new talent management processes that are enabled by ITM, including 

competency assessments, individual development planning, succession planning, and workforce 

planning. 

Treasury reinstated its Learning Leaders Council (LLC) in FY 2020, convening quarterly 

meetings of Learning and Development professionals across the Department to develop the 

agency’s first Talent Development Strategic Plan under the leadership of the Deputy Chief 

Human Capital Officer. The LLC is working on an agenda for FY 2021 that is aligned to the 

strategic goals of strengthening core competencies, developing all employees, and maximizing 

the value of training. This work includes conducting a competency assessment of the IT 

Specialist occupational series; partnering with the Office of Civil Rights and Diversity and the 

Office of Minority Women Inclusion to identify and provide development opportunities related 

to foundational competencies that support diversity, equity, and inclusion; and, identifying 

existing training related to core competencies that may be accessed by all Treasury employees. 

The LLC also formed working groups aimed at furthering efforts related to knowledge 

management and identifying competencies and development opportunities related to customer 

experience in FY 2020, and this work continues into FY 2021. 

Office of Civil Rights and Diversity (OCRD) 

In FY 2020, OCRD, in consultation with the bureau EEO and HR communities, established 

the first combined Diversity and Inclusion (D&I) and Equal Employment Opportunity (EEO) 

Strategic Plan (FY 2021-2024). OCRD will provide further amendments to the Plan based 

upon the Office of Personnel Management revised government-wide strategic plan, which 

will provide further guidance to federal agencies under the new Administration. 

OCRD will continue the audits of bureaus’ EEO, D&I, and External Civil Rights Programs in 

FY 2021. These audits will critically look at bureaus’ D&I and EEO programs to determine 

any areas where bureaus need a sharper focus and to find and recreate “best practices.” 

Due to Executive Order (EO) 13985, Advancing Racial Equity and Support for Underserved 

Communities Through the Federal Government, and EO 13988, Preventing and Combating 

Discrimination on the Basis of Gender Identity or Sexual Orientation, OCRD will be 

spending considerable time assessing equity within Treasury and to ensure Treasury’s 

policies and programs are accessible to people of color and members of underserved 

communities. These new requirements have expanded the responsibilities for the D&I and 

civil rights communities, which would include OCRD staff. 
DOSE - 28 

As a result of COVID-19, OCRD’s Complaint Operations Division transitioned to electronic 

processing of Treasury’s formal EEO complaints in FY 2020. This transition has improved 

the efficiency of our Complaint Operations Division and decreased administrative costs of 

this program. OCRD also worked with the bureau EEO offices on Human Capital 

engagement to improve inclusion scores – this will also be a continuing focus in FY 2021 and 

FY 2022. While scores for “Fairness” continue to be a concern, efforts have been made to 

introduce “Unconscious Bias” training in the workforce and at all management levels to help 

make leaders aware of biases and to learn to put aside such biases when making employment 

decisions. 

COVID-19 prevented traditional diversity training in FY 2020 through FY 2021. However, 

OCRD began work to transition in-person training to a virtual option for workforce reengagement for this training which will need additional funds. OCRD’s work with the Treasury 

Executive Institute to develop programming for executives and senior level staff in the areas of 

diversity and inclusion was also placed on hold during COVID. However, in FY 2021 the 

Executive Diversity Advisory Council will further develop training in this area, which may 

require additional funding support. 

EEO complaints were adjudicated effectively within the Department, thereby, meeting 

regulatory timeframes both in issuance of decisions and days to investigate complaint. Both 

benchmarks exceeded Treasury’s prior year’s timeliness rate. 

In FY 2020, OCRD continued to lead the work to achieve full compliance with the civil rights 

requirements for the Department. The responsibility for this work continued to increase in 

FY 2020 and is anticipated to grow in FY 2021, the Department gained several new large 

financial assistance programs created in response to the COVID-19 pandemic. In FY 2020, 

OCRD provided Department-wide training on accessibility and language access requirements. 

In addition to managing the Treasury-wide external civil rights program, OCRD continues to 

manage the civil rights compliance program for DO. In FY 2020, significant progress was made 

to improve compliance in the DO financial assistance programs and two of the existing program 

offices have implemented additional compliance measures resulting in full compliance (SIPPRA 

and the Office of Gulf Coast Restoration). In FY 2021, the remaining existing program offices 

will continue to work in the implementation phase of their compliance improvement plans 

(TEAOF and CDFI Fund). These efforts will include conducting pre-award compliance reviews 

of applications for financial assistance and post-award compliance reviews of existing 

recipients. In FY 2020, OCRD provided technical assistance to the CARES Act program staff to 

ensure civil rights compliance in the two identified financial assistance programs. 

In FY 2021, OCRD will continue to work with the CARES Act program staff and is working 

with the staff managing the programs created under the American Rescue Plan to ensure civil 

rights compliance measures are implemented before disbursement of funds occur (pre-award). 

Office of the Deputy Chief Financial Officer

For FY 2020, the Department received its 21st consecutive unmodified audit opinion on its 

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

consolidated audits to be conducted for FY 2021 and FY 2022. Overall, the Department has 
DOSE - 29 

made strong progress in enhancing its internal control environment and remains committed to 

ensuring high standards of integrity and transparency in reporting its financial performance. 

Office of Small and Disadvantaged Business Utilization (OSDBU) 

Based on preliminary data for FY 2020, Treasury met or exceeded four out of five small business 

prime contracting goals. Treasury did not meet its Historically Under-utilized Zone (HUBZone) 

small business goal. Treasury did not meet four out of five small business subcontracting goals 

in FY 2020. Treasury OSDBU identified several possible root causes for not meeting Treasury’s 

prime and subcontracting goals in FY 2020 including the impact of COVID-related emergency 

acquisitions on traditional acquisition planning, limited enforcement of existing Treasury 

procurement policies related to HUBZone businesses, and additional training needs for 

Treasury’s Contracting Officers related to subcontracting pre- and post-award requirements. 

The Small Business Administration issues an annual scorecard grade to Treasury. Treasury is 

graded for meeting their prime and subcontracting goals, compliance with the Small Business 

Act Section 15 (k), and the number of new small businesses entering Treasury’s contracting 

industrial base. Receiving an “A” score is a testament to the hard work and professionalism of 

the procurement and acquisition teams across Treasury’s bureaus and the serious commitment to 

utilizing small businesses that emanates from Treasury’s leadership. To comply with Section 15 

(k), Small Business Act, the Department continued to focus on small business prime and 

subcontracting goal achievements, monitored small business pre-award and post-award 

functions, and increased Treasury’s small business industrial base through a robust outreach 

program. 

In FY 2020, per FAR Part 19.201, OSDBU successfully executed Small Business Programs 

Compliance Reviews on six Bureaus which have procurement authority to make awards to small 

businesses. The results of the compliance reviews provided for a comprehensive small business 

acquisition transformation strategy that included acquisition workforce teaching and training 

across the Department. Overall, the Department made progress in enhancing its small business 

programs and remains committed to ensuring high standards of small business program 

compliance. Treasury was assessed as “moderately favorable” for its small busines programs in 

FY 2020. Central to the compliance review strategy is early acquisition planning and broad 

stakeholder participation. In FY 2020, Treasury OSDBU reviewed 420 acquisition actions 

valued at over $250,000 not set-aside for small business and rejected 20 of these actions due to 

inadequate market research. After the rejections, small business opportunities were found for all 

20 actions. Of the 420 actions, 37 required subcontracting plan review (over $700,000) and 

monitoring of the subcontracting goals addressed in the plan. Together with the Small Business 

Administration Procurement Center Representative, OSDBU approved the subcontracting plans 

and these became part of the resultant contract. 

In FY 2021, OSDBU will assess Bureaus’ Corrective Action Plans (CAP). The CAPs were 

identified in the two previous compliance reviews (FY 2019 and FY 2020), where Bureau 

deficiencies in their small business programs were noted as “needs improvement.” The annual 

small business program health summary will be submitted to the Deputy Secretary by October 

2021. Also, in FY 2021, Treasury OSDBU and Office of the Procurement Executive will 
DOSE - 30 

provide additional small business subcontracting training to Treasury’s acquisition workforce to 

enforce subcontracting pre-award and post-award contract responsibilities. 

Office of the Senior Procurement Executive (OPE) 

In FY 2020, Treasury continued a comprehensive acquisition transformation strategy designed to 

facilitate innovation, strategic management, efficiency. Central to the strategy is early planning 

and broad stakeholder participation as well as accelerated transition to strategic acquisition 

vehicles. In FY 2021 and FY 2022, Treasury will continue to focus on exploring the use of 

automated solutions to improve the acquisition process as well as identifying data analytics tools 

to support timely decision-making. 

In FY 2020, OPE successfully issued COVID-related policy and guidance and executed a 

targeted assessment to ensure appropriate documentation and use of Federal Acquisition 

Regulation contracting flexibilities as well as accurate data reporting of COVID-related 

procurement actions. Due to quick execution of contractual support, the Department was able to 

ensure continuity of operations throughout the pandemic and successful implementation of new 

mission critical programs established by the CARES Act and the Consolidated Appropriations, 

2021, Act. In FY 2021, the Department will continue to focus on providing contractual support 

to assist with the implementation of new mission critical programs established by the ARP Act. 

Treasury continued to work towards transitioning from Major Acquisition Program (MAP) 

reviews to more robust Acquisition Management Reviews (AMRs) in support of Program 

Management Improvement and Accountability Act (PMIAA) implementation efforts. An 

expected outcome of the AMR is to help ensure successful contract performance strategically 

aligns with mission outcomes by expanding emphasis on the acquisition lifecycle from the time a 

contracting office receives a complete acquisition package though contract performance, 

closeout, and final payment. 

From FY 2016 to FY 2020, Treasury increased the percentage of Spend Under Management 

(SUM) from 47.3 percent to 77.6 percent and increased the percentage of Best-in-Class (BIC) 

spend from 12.8 percent to 50.4 percent. Treasury has achieved both savings and efficiencies 

through aggregating requirements and leveraging its purchasing power via enterprise-level 

management of common spend categories. By fully utilizing category management, Treasury 

seeks to save the Federal Government money through smarter purchasing and greater 

collaboration across stakeholder organizations to achieve greater efficiency with fewer 

resources. The Treasury strategy for FY 2020 and FY 2021 continues the Department’s 

transition to the Office of Management and Budget’s preferred contract vehicles, reducing the 

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

acquisition priorities. Treasury continues to make significant progress by widely adopting 

category management principles and actively pursuing opportunities to manage spend more 

effectively across the Department. 

Office of the Chief Data Officer (CDO) 

Treasury’s new Office of the Chief Data Officer (OCDO) is enabling Treasury to become a datacentric organization that fulfills its mission with optimal use of quality data in its decision-
DOSE - 31 

making and operations consistent with the aims of the Title II of the Evidence-Based 

Policymaking Act signed into law in 2019. 

In FY 2020, OCDO encouraged the development of Treasury’s data centric culture through the 

building of a cross-agency data community. This community and the establishment of a Data 

Governance Board have increased Treasury’s treatment of data as a critical asset and fostered 

greater cross-component collaboration on a variety of data centric projects. In addition to 

establishing the role of the Chief Data Officer (CDO) and creating the Data Governance Board, 

in FY 2020, OCDO also: 

 Established a Data Advisory Council 

 Undertook Treasury’s first Data Maturity Assessment 

 Completed an Initial Assessment of Data Skills, and 

 Initiated the establishment of a Treasury-wide dataset inventory to be finalized and published 

pending the completion of relevant guidance from the Office of Management and Budget 

Treasury is also an active participant in the Federal CDO Council. Treasury’s CDO leads the 

Council’s Operations Working Group and serves on the Council Executive Committee. 

Treasury’s Deputy CDO and other members of Treasury’s data community from bureaus and 

departmental offices participate in several Council Working Groups. Active participation in the 

Council enables the OCDO to understand and bring back to Treasury leading government 

practices in enhancing data management, use, sharing, as well as the development of a general 

data culture. More details on OCDO’s accomplishments are included in the Treasury CDO’s 

Annual Report to Congress. 

2.1.5 – Committee on Foreign Investment in the United States Resources and Measures

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $2,589 $3,736 $6,000 $15,000 $22,341 $22,661 $24,556 

CFIUS Fund Transfers 0 0 0 0 $15,000 $15,000 $15,000 

Budget Activity Total $2,589 $3,736 $6,000 $15,000 $37,341 $37,661 $39,556 

Full-time Equivalents (FTE) 15 23 26 32 55 93 120 

FY 2016 - FY 2020 Other Resources dollars are actuals. FY 2016 - FY 2020 FTE are actuals. 

CFIUS Budget activity was established in FY 2020 PB. Prior year enacted levels are based on an approximation of funding and have been 

subtracted from IA/EP & ED budget activities. 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Timely Review of CFIUS Cases 100 100 100 100 100 100 100 100 
DOSE - 32 

Committee on Foreign Investment in the United States Description of Performance:

Timely Review of CFIUS Cases: 

This measure tracks compliance with statutory deadlines for completing national security 

reviews of transactions notified to the CFIUS to ensure that the CFIUS process is timely and 

efficient. Results are reported on a calendar year basis. 

Committee on Foreign Investment in the United States Budget and Performance 

($24,556,000 from direct appropriations, and $15,000,000 from fund transfers): 

In February 2020, Treasury published final regulations implementing the Foreign Investment 

Risk Review Modernization Act of 2018 (FIRRMA). These regulations effectuated FIRRMA's 

expansion of the jurisdiction of CFIUS to review certain non-controlling, non-passive 

investments by foreign persons into certain types of U.S. businesses, as well as certain 

transactions by foreign persons involving real estate in the United States. The regulations also 

implemented mandatory declarations for two types of transactions—where a foreign government 

is acquiring a “substantial interest” in certain U.S. businesses, and transactions involving certain 

U.S. businesses that produce, design, test, manufacture, fabricate, or develop one or more critical 

technologies. Additionally, the regulations created an exception to the mandatory declaration 

provision for non-controlling investments by certain foreign persons defined as “excepted 

investors” based on their ties to certain countries identified as “excepted foreign states,” and their 

compliance with certain laws, orders, and regulations. In May 2020, Treasury initiated the 

collection of filing fees for notices filed with CFIUS and also launched a secure web-based 

portal for parties to submit notices and declarations. 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

1. EO 13771 - Number of Deregulatory Actions Issued Removing performance indicator. EO 

13771 was rescinded on January 20, 2021. 

2. EO 13771 - Number of Deregulatory Actions Issued 

that Address Recommendations by the Regulatory 

Reform Task Force 

Removing performance indicator. EO 

13771 was rescinded on January 20, 2021. 

3. EO 13771 - Number of Deregulatory Actions Issued 

that Address Recommendations by the Regulatory 

Reform Task Force to the Agency Head Consistent 

with Applicable Law 

Removing performance indicator. EO 

13771 was rescinded on January 20, 2021. 

4. EO 13771 - Number of Evaluations to Identify 

Potential Deregulatory Actions That Included 

Opportunity for Public Input and/or Peer Review 

Removing performance indicator. EO 

13771 was rescinded on January 20, 2021. 

5. EO 13771 - Number of Regulatory Actions Issued Removing performance indicator. EO 

13771 was rescinded on January 20, 2021. 

6. EO 13771 - Total Incremental Cost of All 

Regulatory Actions and Deregulatory Actions 

(Including Costs or Cost Savings Carried Over From 

Previous Fiscal Years) 

Removing performance indicator. EO 

13771 was rescinded on January 20, 2021. 
DOSE - 33 

D – Evidence-Building Activity 

Treasury-wide Management 

Type of 

EvidenceBuilding 

Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

Evaluation 

Collection and 

analysis of data to 

assess effectiveness 

and efficiency of 

programs, policies, 

or procedures

Estimated share of 

all EvidenceBuilding Activities: 

 15%

Major activities: 

 Coordination of 

usaspending.gov/DATA Act 

reporting 

 Coordination of Evidence Act Title 

I 

 Workforce analysis and human 

capital evaluations 

 0301 – 

Miscellaneous 

Administration 

and Program 

 0340 – 

Program 

Manager 

 0343 – 

Management 

& Program 

Analyst 

 GSA Office of 

Evaluation 

Sciences 

(OES): 

o DASHRCHCO 

Evaluation 

Support 

o ARP 

Equity 

Uptake 

Assessme

nts (IAA) 

o ECIP/CDF

I 

Evaluation 

(IAA) 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☒ By external 

partners 

 (non-government) 

☒ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Coordination of Equity Assessment 

Objective 1 (Tax Policy, Tax 

Payments, BFS Offset Program) 

 Equity uptake assessments – ARP 

programs 

 Impact Evaluation – ECIP and 

CDFI 

 DASHR-CHCO evaluation of the 

use of hiring assessments 

 Consultation on MITRE/Treasury 

research partnerships (OCCIP – 

financial sector cyber situational 

awareness, CDFI Fund – persistent 

poverty counties) 

Research 

Modeling or other 

systematic use of 

data to explore 

emerging issues or 

potential scenarios 

to generate new 

knowledge

Estimated share of 

all EvidenceBuilding Activities: 

 5%

Major activities: 

 Coordination with MITRE 

(FFRDC) 

 Literature reviews for learning 

agenda questions 

 0343 – 

Management 

& Program 

Analyst 

 MITRE 

FFRDC 

☒ For internal policy 

 decision-making 

☐ During internal 

 strategic 

management 

 processes 

☐ By external 

partners 

 (government) 

☐ By external 

partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 MITRE coordination (Great Power 

Competition – Dollar Dominance 

Study) 
DOSE - 34 

Type of 

EvidenceBuilding 

Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

Analysis 

Routine and 

frequent use of data 

that produces 

insights for decision 

making and 

program 

management

Estimated share of 

all EvidenceBuilding Activities: 

 75%

Major activities: 

 Analysis of performance data in 

quarterly data-driven reviews and 

annual assessment of Treasury 

performance measures 

 Risk assessment 

 FEVS data analysis 

 Financial analysis and budget 

formulation 

 OCRD Audits of the Bureaus’ EEO 

Programs (active) 

 OCRD Annual Management 

Directive 715 Reporting (active) 

 OCRD Quarterly No FEAR Reports 

(active) 

 Civil rights compliance analysis 

(active) 

 Civil rights pre- and post-award 

compliance (planned) 

 Analysis of administrative data 

(e.g., procurement, operations, civil 

rights compliance) 

 Development and maintenance of 

analytical dashboards and data 

inventory 

 0260 – Equal 

Employment 

Opportunity 

 0301 – 

Miscellaneous 

Administration 

and Program 

 0340 – 

Program 

Manager 

 0343 – 

Management 

& Program 

Analyst 

 0360 – Equal 

Opportunity 

Compliance 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☒ By external 

partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Enterprise-wide capacity 

assessment for evidence-building 

activities 
DOSE - 35 

Type of 

EvidenceBuilding 

Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

Statistics 

Collection, 

compilation, and 

processing of data 

for describing or 

estimating 

characteristics or 

insights concerning 

groups

Estimated share of 

all EvidenceBuilding Activities: 

 5%

Major activities: 

 DASHR-CHCO/OCRD/OMWI 

Workforce Demographic Statistics 

 0260 – Equal 

Employment 

Opportunity 

 0343 – 

Management 

& Program 

Analyst 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☒ By external 

partners 

 (non-government) 

☒ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 
DOSE - 36 

Policy Offices (Domestic Finance, Economic Policy, International Affairs, Tax Policy

Type of 

EvidenceBuilding 

Activity 

Major Activities 

and Planned 

Projects

Resource Types Use 

Evaluation 

Collection and 

analysis of data to 

assess effectiveness 

and efficiency of 

programs, policies, 

or procedures

Estimated share of 

all EvidenceBuilding Activities: 

 5%

Major activities: 

 Monitoring and 

Evaluation (IA) 

 0301 – 

Miscellaneous 

Administration and 

Program 

 0340 – Program 

Manager 

 0343 – Management 

& Program Analyst 

 OTA Third Party 

Independent 

Evaluator 

☒ For internal policy 

 decision-making 

☐ During internal 

 strategic management 

 processes 

☒ By external partners 

 (government) 

☐ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 

projects: 

 Recovery 

programs 

evaluations, 

including ECIP, 

some CDFI 

programs, and 

American Rescue 

Plan (ARP) 

programs (equity 

uptake) 

 Analysis of 

RESTORE grant 

processing 

efficiency 

Research 

Modeling or other 

systematic use of 

data to explore 

emerging issues or 

potential scenarios 

to generate new 

knowledge

Estimated share of 

all EvidenceBuilding Activities: 

 25%

Major activities: 

 Fiscal projections 

and debt 

management 

 Original research 

on specific 

financial and 

economic topics 

(OFR) 

 Emerging 

technology and 

risk assessments 

(OCCIP) 

 Research to 

support policy 

analysis 

 0110 – Economist 

 0301 – 

Miscellaneous 

Administration and 

Program 

 1160 – Financial 

Analyst 

☒ For internal policy 

 decision-making 

☐ During internal 

 strategic management 

 processes 

☐ By external partners 

 (government) 

☐ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 

projects: 

 Situational 

awareness of the 

financial sector 

project (OCCIP) 
DOSE - 37 

Analysis 

Routine and 

frequent use of data 

that produces 

insights for decision 

making and 

program 

management

Estimated share of 

all EvidenceBuilding Activities: 

 65%

Major activities: 

 Analysis of CFIUS 

transactional data 

 Policy analysis 

 Performance 

measurement 

 Analysis of tax 

revenue 

 Equity assessment 

activities 

 Cash flow and 

debt analysis 

 0260 – Equal 

Employment 

Opportunity 

 0301 – 

Miscellaneous 

Administration and 

Program 

 0340 – Program 

Manager 

 0343 – Management 

& Program Analyst 

 0360 – Equal 

Opportunity 

Compliance 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic management 

 processes 

☒ By external partners 

 (government) 

☒ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) FY21 and FY22 

projects: 

 Enterprise-wide 

capacity 

assessment for 

evidence-building 

activities 

Statistics 

Collection, 

compilation, and 

processing of data 

for describing or 

estimating 

characteristics or 

insights concerning 

groups

Estimated share of 

all EvidenceBuilding Activities: 

 5%

Major activities: 

 Economic 

modeling to 

support policy 

analysis 

 Advanced data 

analysis 

 0110 – Economist 

 0301 – 

Miscellaneous 

Administration and 

Program 

 1160 – Financial 

Analyst 

☒ For internal policy 

 decision-making 

☐ During internal 

 strategic management 

 processes 

☒ By external partners 

 (government) 

☐ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 

projects: 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Cybersecurity Enhancement 

Account 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2022 
CEA - 2 

Table of Contents 

Section I – Budget Request ......................................................................................................... 3

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

B – Summary of the Request .................................................................................................... 3

1.1 Appropriations Detail Table ............................................................................................... 4

1.2 Budget Adjustments Table .................................................................................................. 4

C – Budget Increases and Decreases Description ..................................................................... 4

1.3 Object Classification (Schedule O) Obligations ............................................................... 10

D – Appropriations Language and Explanation of Changes .................................................. 11

E – Legislative Proposals ........................................................................................................ 11

Section II – Annual Performance Plan and Report ............................................................... 12

A – Strategic Alignment ......................................................................................................... 12

B – Budget and Performance by Budget Activity .................................................................. 12

2.1.1 Cybersecurity Enhancement Account Resources and Measures ................................... 12

C – Changes in Performance Measures .................................................................................. 14

D – Evidence-Building Activity ............................................................................................. 14

Section III – Additional Information ...................................................................................... 14

A – Summary of Capital Investments ..................................................................................... 14
CEA - 3 

Section I – Budget Request 

A – Mission Statement 

Bolster the Department’s cybersecurity posture. 

B – Summary of the Request 

To proactively and strategically protect Treasury Information Technology (IT) systems against 

cybersecurity threats, the FY 2022 budget request includes $132.027 million for the CEA. The 

request includes $114.027 million to address the impacts of the SolarWinds incident at Treasury 

plus an additional $18 million for new and continued investments that support critical IT 

improvements. 

The FY 2022 discretionary request identified a cyber reserve of $750 million. The President’s 

Budget allocates these resources to nine agencies significantly impacted by the SolarWinds 

incident, including the Department of Treasury (Treasury). The funding is intended to address 

immediate response needs and does not focus on wholesale replacement of IT systems at this 

time. The request provides critical cybersecurity resources to agencies and prioritizes basic 

cybersecurity enhancements, including: cloud security, Security Operations Center (SOC) 

enhancements, encryption, Multi-Factor Authentication (MFA), increased logging functions, and 

enhanced monitoring tools. Treasury is also bolstering its cybersecurity posture with investments 

that provide comprehensive assessments to identify the breadth and depth of this attack, along 

with containment and post-incident analysis to ensure the appropriate response is deployed to 

both protect and minimize the impacts of such attacks in the future. 

Treasury will use the CEA to centrally fund the assessment, response, recovery, and mitigation 

efforts to prevent or respond to instances where threat actors have the ability to pose a great risk 

to the Treasury IT infrastructure. The CEA is a multi-year account and managing CEA centrally 

allows Treasury to be more agile in its response to cybersecurity incidents and threats as well as 

leverage enterprise-wide services and capabilities. This account allows for enhanced efficiency, 

communication, transparency, and accountability around the mission of strengthening Treasury’s 

cybersecurity posture. Treasury elevates the importance of such initiatives and provides Treasury 

leadership, OMB, and Congress with better transparency into cybersecurity activities across the 

Department. 

The investments within the CEA account align with the National Institute of Standards and 

Technology (NIST) Cybersecurity core framework and reporting standards. This includes 

common cybersecurity activities and outcomes that are gaining use industry-wide: Identify, 

Protect, Detect, Respond, and Recover. Treasury believes the NIST’s framework provides better 

clarity into the strategic focus of the Department’s cybersecurity investments, aligns with 

accepted industry standards, guidelines, and practices, and allows Treasury to more effectively 

respond to government-wide reporting requirements. 
CEA - 4 

1.1 Appropriations Detail Table 

Dollars in Thousands 

Appropriated Resources 

FY 2020 

Operating Plan 

FY 2021 

Operating Plan 

FY 2022 

Request 

FY 2021 to FY 2022 

Change % Change 

New Appropriated Resources FTE1

 AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Cybersecurity Enhancement 

Account 3 $20,538 6 $18,000 10 $132,027 4 $114,027 66.7% 633.5% 

Total Budgetary Resources 3 $20,538 6 $18,000 10 $132,027 4 $114,027 66.7% 633.5% 

1

FTE = Full-time Equivalent employment 

1.2 Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 Operating Plan 6 $18,000 

Changes to Base: 

Non-Recurring Costs (6) 

(18,000) 

Subtotal Changes to Base (6) 

(18,000) 

FY 2022 Current Services 0 $0 

Program Changes: 

Program Increases 10 132,027 

Identify the Business Context, Resources & Cybersecurity Risk 3 31,842 

Protect the Delivery of Critical Infrastructure Services 3 50,433 

Detect Cybersecurity Events 2 18,713 

Respond to Detected Cybersecurity Incidents 2 21,258 

Recover by Maintaining Resilience and Restoration Plans 0 9,781 

Total FY 2022 President's Budget Request 10 $132,027 

*The budget includes $114.027 million designated to strengthen Treasury’s cybersecurity posture and 

address the impacts of the SolarWinds incident. 

C – Budget Increases and Decreases Description 

Non-Recurring Costs ............................................................. -$18,000,000 / -6 FTE 

This amount represents non-recurring initial investments. 

Program Increases ............................................................ +$132,026,534 / +10 FTE 

Identify the Business Context, Resources & Cybersecurity Risk +$31,841,424 / +3 FTE 

Goal: Develop an organizational understanding to manage cybersecurity risk to systems, people, 

assets, data, and capabilities. 

Risk Management Framework (RMF) Automation Tool +$2,100,672 / +0 FTE 

This is a continuation of a prior year request. While the FY 2021 request supports 

deployment in Departmental Offices (DO) and some Bureaus, the FY 2022 request plans to 

expand capabilities to all other Bureaus, including IRS. 

The RMF Automation Tool initiative will replace the Treasury Federal Information Security 

Modernization Act (FISMA) Treasury Federal Information Management System (TFIMS). 

TFIMS is Treasury’s system to track metadata, artifacts, and interconnections between 

systems. However, TFIMS currently operates largely as a document storage solution. It does 
CEA - 5 

not offer workflows or process automation and has limited reporting capabilities. The RMF 

Tool will automate a broad range of services for comprehensive, full integrated risk 

management, including controls scorecard measurement, dashboard reporting, and the 

generation of RMF System Assessment and Accreditation (SA&A) artifacts. Pivoting to 

digitally based processes will improve FISMA compliance without increasing security 

personnel costs. SA&A package generation within Treasury presently averages over 6 

months. The RMF’s automation and workflow capabilities will reduce costs and improve 

efficiency based on analysis of cybersecurity personnel workloads. It will also provide an 

integrated suite of ongoing authorization capabilities. The tool would be deployed within DO 

first and then progressively rolled out to Treasury Bureaus. 

Enterprise Cyber Risk Management (ECRM) +$2,395,967 / +1 FTE 

The Enterprise Cyber Risk Management (ECRM) initiative will continue to evolve 

Treasury’s approach to managing risks across the enterprise and will begin a continuous 

review of all of Treasury’s critical networks, systems, and data. ECRM enhances existing 

risk management processes through continuous planning, identification, categorization, 

prioritization, reporting, assessing, scoring, and remediation. Bureaus currently capture their 

system risk information into TFIMS. The ECRM ingests data from TFIMS, High Valued 

Assets (HVAs), Continuous Diagnostic and Monitoring (CDM) and other data sources at the 

department level to create an aggregated enterprise level cybersecurity risk register. This 

capability does not currently exist and implementing this process will enable Treasury to 

better understand the specific security needs of its most critical vulnerabilities, while gaining 

new insight as to how those vulnerabilities and mitigation strategies lower the risk across the 

larger federal enterprise. The funding and FTEs will support a continuous review of all 

enterprise risks which enables Treasury to achieve a better understanding of systems’ cyber 

vulnerabilities and the associated costs. ECRM will also enable Treasury to better prioritize 

risks and quantify the levels of effort and magnitude needed to reduce risk exposure. 

Supply Chain Risk Management Enhancements (SCRM) +$1,135,361 / +2 FTE 

Supply chain risk management (SCRM) has become an increasingly critical cybersecurity 

issue The FY 2019 National Defense Authorization Act prohibited agencies from procuring 

or renewing contracts for equipment, systems or services that use certain covered 

telecommunications. During a recent GAO audit, seven findings related to Treasury’s SCRM 

program were identified that must be addressed. The SCRM initiative will establish a process 

for Treasury to identify the types of hardware/software and third parties being utilized 

throughout Treasury and identify associated risks. This funding and FTEs will support efforts 

to identify SCRM risks and threats as well as provide needed support to bureaus in the form 

of guidance, facilitation of requirements, analysis, and tracking/oversight for software and 

hardware acquisitions. 

NIST Cross-Functional Investments (Identify the Business Context, Resources & 

Cybersecurity Risk) +26,209,424 / +0 FTE 

The following investments are allocated across multiple NIST framework categories for 

improving critical infrastructure cybersecurity. 

 
CEA - 6 

Post-Incident Response +$5,397,500 / +0 FTE 

Additional details about this investment is available at the end of this section. 

Threat Hunting, Treasury-wide Log Collection, Management and Certificate Security 

for Identification Management +$20,811,924 / 0 FTE 

Additional details about this investment is available at the end of this section. 

Protect the Delivery of Critical Infrastructure Services +$50,432,839 / +3 FTE 

Goal: Develop and implement appropriate safeguards to ensure delivery of critical services. 

Cloud-Based Security +$7,500,000 / +0 FTE 

Investments in cloud-based security will focus on the sufficient security of systems and 

information that have been moved to cloud-based platforms. This includes; assessing 

potential cloud services for alignment with established Federal Risk Authorization 

Management Program (FedRAMP) security baselines, acquiring tools to enhance the security 

of cloud-based applications, granting agency Authority to Operate (ATO) for systems and 

service with an existing FedRAMP ATO, and the granting of ATOs to cloud service 

providers. 

High Value Assets (HVA) +$2,834,536 / +2 FTE 

In FY 2017, Treasury began funding Risk Vulnerability Assessments (RVA) and Security 

Architectural Reviews (SAR) within the CEA Account. This has allowed Treasury to analyze 

key systems more frequently than the SARs/RVAs performed by the Department of 

Homeland Security (DHS). To date, Treasury has conducted 11 RVAs/SARs (9 in FY 2020 

and 2 in FY 2021) outside of the DHS process. This request is estimated to fund 

approximately 18 additional assessments. These assessments include a review of Treasury’s 

critical networks, systems, and data through a continuous cycle of planning, identification, 

categorization, prioritization, reporting, assessment, and remediation. This cycle enables 

Treasury to better understand the security needs of its most critical assets and how these 

assets fit into the larger Federal enterprise. The increase in funding and FTEs will support 

continuous reviews of all critical assets, systems, information, and data, which will help 

Treasury better understand what is on their network, what is valuable to their stakeholders, 

and what is valuable to individuals with malicious intent. 

Infrastructure +$2,037,000 / +0 FTE 

IT infrastructure improvements will include expanding the security controls for enterprise 

applications through secured license upgrades, expanded data processing and storage, and 

new recovery capabilities. This will help to protect the conversion of Active Directory 

Trusts to Federation, the hardening of shared service applications which provides for the 

authorization, and the authentication and single sign-on functionalities for applications and 

incident managements tools. 

Centralized Key Management Services (CKMS) +$740,197 / +0 FTE 

In the Cybersecurity Act of 2015, agencies were directed to encrypt information at rest and in 

transit. While increasing encryption ensures that data is being processed and stored securely, 

it also creates new requirements for managing the encryption keys required to access this 

data and increases the number of keys to be inventoried and managed. Further, Treasury may 
CEA - 7 

decide that segmenting keys by system, service, or mission function may be advantageous. 

As decisions are made to segment keys, tracking and maintaining inventory becomes 

increasingly complex. 

This initiative is a second-year investment building upon a CEA FY 2021 request to design, 

procure, and implement a service for Treasury and its Bureaus to manage encryption keys 

centrally. The initial 12-month pilot will have been completed using CEA FY 2021 funds. 

This request will be used to fund the subsequent 18 months needed to reach initial operating 

capabilities. Once operational, CKMS will provide Treasury with the ability to automate key 

management and quickly revoke keys should they be compromised. The ability to quickly 

revoke keys is important to keeping Treasury systems and data safe; it extends to the overall 

IT Operations environment, since expiring certificates/keys can contribute to availability 

failures. 

NIST Cross-Functional Investments (Protect the Delivery of Critical Infrastructure Services) 

+37,321,106 / +1 FTE 

The following investments are allocated across multiple NIST framework categories for 

improving critical infrastructure cybersecurity. 

Post-Incident Response +$5,397,500 / +0 FTE 

Additional details about this investment is available at the end of this section. 

Treasury Shared Services Secure Operations Center (TSSSOC) 

+$8,707,267 / +1 FTE 

Additional details about this investment is available at the end of this section. 

Threat Hunting, Treasury-wide Log Collection, Management and Certificate 

Security for Identification Management +$23,216,339 / +0 FTE 

Additional details about this investment is available at the end of this section. 

Detected Cybersecurity Events +18,712,493 / +2 FTE 

Goal: Develop and implement appropriate activities to identify the occurrence of a cybersecurity event. 

NIST Cross-Functional Investments, (Detect Cybersecurity Events) +18,712,493 / +2 FTE 

The following investments are allocated across multiple NIST framework categories for 

improving critical infrastructure cybersecurity. 

Treasury Shared Services Secure Operations Center (TSSSOC) 

+$8,707,267 / +2 FTE 

Additional details about this investment is available at the end of this section. 

Threat Hunting, Treasury-wide Log Collection, Management and Certificate 

Security for Identification Management +$10,005,226 / +0 FTE 

Additional details about this investment is available at the end of this section. 
CEA - 8 

Respond to Detected Cybersecurity Incidents +$21,258,493 / +2 FTE 

Goal: Develop and implement appropriate activities to take action regarding a detected cybersecurity incident. 

Incident Analysis +2,546,000 / +0 FTE 

This investment is designated for Treasury’s efforts in investigative, forensics, advisory and 

strategic support in response to ongoing cybersecurity incident response. DO will also 

strategically source additional professional support services to maintain daily operational 

needs and capabilities for incident response activities. 

NIST Cross-Functional Investments (Respond to Detected Cybersecurity Incidents) 

+18,712,493 / +2 FTE 

The following investments are allocated across multiple NIST framework categories for 

improving critical infrastructure cybersecurity. 

Treasury Shared Services Secure Operations Center (TSSSOC) 

+$8,707,267 / +2 FTE 

Additional details about this investment is available at the end of this section. 

Threat Hunting, Treasury-wide Log Collection, Management and Certificate 

Security for Identification Management +$10,005,226 / +0 FTE 

Additional details about this investment is available at the end of this section. 

Recover by Maintaining Resilience and Restoration Plans +$9,781,285 / +0 FTE 

Goal: Develop and implement appropriate activities to maintain plans for resilience and to restore any capabilities 

or services that were impaired due to a cybersecurity incident. 

Enterprise Wide Cyber Exercise and Instrumentation +$998,000 / +0 FTE 

This initiative will plan, conduct, and report results from a large-scale cyber exercise across 

Treasury, in addition to implementing security instrumentation that empowers incident 

responders to share a common system view. This would be the first enterprise wide 

cybersecurity exercise conducted by Treasury and would test existing incident plans to 

ensure that plans recover vital services in the order needed. 

Treasury will also test to ensure that components work together effectively in the face of a 

large-scale cyber incident and ensure that existing instrumentation within Treasury (e.g. 

Splunk, SCCM, Active Directory, etc.) are normalized to report consistent information. 

This initiative aims to improve visibility into cybersecurity efforts, encourage information 

sharing across Bureaus, identify potential gaps in present plans, and reduce inconsistencies 

between systems to provide Treasury leadership with a Department-wide view while working 

to protect information systems from attack and recover critical functionality. 

Containment +5,092,000 / +0 FTE 

These investments, to rebuild a clean environment, will provide full confidence to mission 

support activities. Safeguarding against threats requires investments to rebuild Treasury’s 

compromised environment to mitigate threat of lateral movement/burrowing by adversaries. 
CEA - 9 

NIST Cross-Functional Investments (Recover by Maintaining Resilience and Restoration 

Plans) +$3,691,285 / +0 FTE 

The following investments are allocated across multiple NIST framework categories for 

improving critical infrastructure cybersecurity. 

Threat Hunting, Treasury-wide Log Collection, Management and Certificate 

Security for Identification Management +$3,691,285 / +0 FTE 

Additional details about this investment is available at the end of this section. 

NIST Cross-Functional Investments 

The following investments are allocated across multiple NIST framework categories for 

improving critical infrastructure cybersecurity. 

 Post-Incident Response, 

This will enhance cybersecurity posture by addressing the IT architecture with investments in 

zero trust implementation, expanded SOC capabilities and data scanning tools for better 

threat analysis. The functions of this investment align with the Identify and Protect 

categories. 

 Treasury Shared Services Secure Operations Center (TSSSOC), 

Treasury’s Security Operations Centers (SOCs) are presently set up with GSOC to monitor 

the security for the perimeter of the Treasury enterprise’s Trusted Internet Connections 

(TIC), while Bureaus are responsible for their own SOCs which monitor Bureau-specific 

perimeters and systems. All of Treasury’s Bureaus utilize at least a portion of the 39 shared 

service services from the Treasury Franchise Fund. These services include programs that 

form the backbone of Treasury's HR systems (HR Connect) and security credentials 

(TEICAM). Currently, there is no dedicated SOC responsible for monitoring these shared 

services systems. This investment will establish the new SOC capabilities and FTEs will be 

supporting these efforts for implementation and ongoing monitoring. 

Presently, these systems utilize siloed approaches to incident response, log/vulnerability 

analysis, and system monitoring. While each system individually has some of these 

capabilities, no single entity has a mission to comprehensively manage them. This creates 

possible security gaps. As a result, past alerts have been missed, coordination problems 

exacerbated, and incident response time lengthened. For example, when security incidents 

occur that impact multiple systems, IT teams need additional time to manually consolidate 

data to obtain decisions from authorizing officials. Any delay in response time increases 

security risks for the shared services programs, some of which manage massive amounts of 

important data, such as HR Records and identity management. To cite a specific example, on 

August 29, 2019, an Enterprise Application Cybersecurity (EAC) system was improperly 

made Internet accessible. No alerts or alarms went off when Internet traffic started going to 

the system. EAC only possesses system-specific monitoring capabilities, and GSOC only 

monitors the Department’s perimeter. All traffic had gone through Network Address 

Translation at Fiscal Service and consisted of valid, internal IPs. At the perimeter, GSOC did 

not possess system-specific workflow knowledge to discern “good” versus “bad” traffic, so 

they also did not raise any alarms. In this instance, Treasury was able to mitigate the 
CEA - 10 

problem, but any time an internal facing system is hacked or becomes exposed to the internet 

numerous potential risks can occur, including unauthorized access or data loss. The functions 

of the TSSSOC investment align with the Protect, Detect and Respond categories. 

 Threat Hunting, Treasury-wide Log Collection, Management and Certificate Security 

for Identification Management, 

The funding and FTEs will be used to address the critical cybersecurity needs across the 

Treasury network enterprise to support the deployment and implementation of advanced 

network traffic protocol analysis, dynamic and static malware analysis, and applicable 

forensic analytics. This funding will also support the threat intelligence providing proactive 

posture with regards to emergent threats. Investments in annual exercises to identify threats 

in targeted systems provides for automated incident investigations and accelerates triage and 

response to operational incidents with advanced reporting and resource, and access to threat 

analysts. This will also assist in automating prevention and detection of malware, exploits, 

and in-process attacks through enhanced endpoint visibility. The functions of this investment 

align with the Identify, Detect and Respond categories. 

1.3 Object Classification (Schedule O) Obligations 

Dollars in Thousands

 FY 2020 FY 2021 FY 2022 

 Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Object Classification Obligations 

11.1 - Full-time permanent 1,736 1,909 1,935 

11.5 - Other personnel compensation 28 0 0 

11.9 - Personnel Compensation (Total) 1,764 1,909 1,935 

12.0 - Personnel benefits 552 570 669 

Total Personnel and Compensation Benefits $2,316 $2,480 $2,604 

21.0 - Travel and transportation of persons 1 0 0 

23.3 - Communications, utilities, and miscellaneous charges 0 82 2,900 

25.1 - Advisory and assistance services 25,671 10,307 30,315 

25.2 - Other services from non-Federal sources 3 0 2,231 

25.3 - Other goods and services from Federal sources 973 1,034 1,594 

25.7 - Operation and maintenance of equipment 1,783 9,627 5,744 

26.0 - Supplies and materials 10 0 0 

31.0 - Equipment 1,838 276 7,424 

32.0 - Land and structures 0 147 0 

Total Non-Personnel $30,279 $21,473 $50,207 

Total Obligations $32,595 $23,953 $52,811 

 

FTE 3 6 10 

*Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
CEA - 11 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

CYBERSECURITY ENHANCEMENT ACCOUNT 

(INCLUDING TRANSFER OF FUNDS) 

For salaries and expenses for enhanced cybersecurity for 

systems operated by the Department of the Treasury, 

[$18,000,000] $132,027,000, to remain available until 

September 30, [2023] 2024: Provided, That such funds 

shall supplement and not supplant any other amounts made 

available to the Treasury offices and bureaus for 

cybersecurity: Provided further, That of the total amount 

made available under this heading [$1,000,000] $4,000,000 

shall be available for administrative expenses for the 

Treasury Chief Information Officer to provide oversight of 

the investments made under this heading: Provided further, 

That such funds shall supplement and not supplant any 

other amounts made available to the Treasury Chief 

Information Officer. (Department of the Treasury 

Appropriations Act, 2021.) 

Increasing the amount of multiyear 

funding provides the ability to 

proactively and strategically protect 

Treasury systems against 

cybersecurity threats. This allows 

Treasury to nimbly respond in the 

event of a cybersecurity incident as 

well as leverage enterprise-wide 

services and capabilities across the 

components of the Department. 

Increasing administrative resources 

addresses anticipated additional 

indirect costs associated with the 

multiyear funding increase and 

service provider capacity constraints.

E – Legislative Proposals 

The Cybersecurity Enhancement Account has no legislative proposals. 
CEA - 12 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

B – Budget and Performance by Budget Activity 

2.1.1 Cybersecurity Enhancement Account Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actuals Actuals Actuals Actuals Actuals Operating 

Plan Request 

Appropriated Resources 0 $47,743 $24,000 $25,208 $20,538 $132,027 $132,027 

Budget Activity Total 0 $47,743 $24,000 $25,208 $20,538 $132,027 $132,027 

Full-time Equivalents (FTE) 0 1 8 12 3 6 10 

The FY 2016 – 2019 appropriated resources represent the approved operating plan. FY 2016 - FY 2019 FTE are actuals. 

Performance Measure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Number of Major Incidents N/A N/A 0 0 1 2 0 1 

Number of Reported Incidents N/A N/A 225 152 206 280 150 150 

Percentage of Tier I HighValue 

Assets (HVA) where Risk and 

Vulnerability Assessment (RVA) or 

Security Architecture Review 

(SAR) are Completed on Time 

N/A N/A 100% 100% 100% 100% 100% 100% 

Percentage of High and/or Critical 

Findings from RVAs or SARs on 

Tier I HVAs that are closed by the 

end of the FY 

N/A N/A N/A 57% 80% 65% 75% 75% 

Risk Management Assessment 

Overall Rating N/A N/A 68% 68% 75% 70% DISC DISC 

Key: Disc - Discontinue; I - Indicator

Cybersecurity Enhancement Account (CEA) Budget and Performance

($132,026,534 from direct appropriations): 

The purpose of CEA is to strategically mitigate cybersecurity risks through a centralized 

program with Department-wide impact. Investments will support the core framework for the 

Department’s IT infrastructure and provide funding to assess and address the SolarWinds 

incident. Due to the increasing volume and sophistication of cyberattacks, Treasury leadership 

has prioritized cybersecurity and supports the centralization of department-wide cybersecurity 

initiatives through the CEA account and budget activity. Current bureau-level cybersecurity 

spending remains in the base budgets of each bureau. 

Description of Performance 

Number of Major Incidents: 

The number of major incidents, as defined in OMB M-19-02, reported by Treasury to 

Congress in a given fiscal year. This is a measure of how effective Treasury’s collective 

defenses are at mitigating the most damaging security threats. 
CEA - 13 

On December 12, 2020, the Department of the Treasury notified the Department of 

Homeland Security (DHS) Cybersecurity and Infrastructure Security Agency (CISA) of a 

major security incident as a result of the Department’s deployment of the SolarWinds Orion 

software product. The Department has completed compromise assessments, and all 

SolarWinds Orion products continue to remain offline across the Treasury Enterprise 

environment. The FY 2022 request includes additional funding to mitigate weaknesses 

identified through the SolarWinds incident and for investments that support critical IT 

improvements. 

Number of Reported Incidents: 

Each fiscal year, Treasury tracks the number of cybersecurity incidents reported to the United 

States Computer Emergency Readiness Team (US-CERT). This helps measure the 

effectiveness of Treasury’s defenses at mitigating security threats and is an indicator of how 

often Treasury is being targeted by malicious actors. If the number of reported incidents rises 

while the number of major incidents remains steady or declines, it indicates an effective 

cybersecurity program. The incidence of intrusion events at Treasury has not remained 

constant over time, and our projections must be used as a baseline measure only. As reflected 

in the Actual value column, there was a lower number of reported incidents at 206 for 

FY 2020 in comparison to those projected by Treasury. The target goal of 280 for FY 2020 

was chosen as an increase in recognized incidents of up to 25 percent from FY 2018 actuals, 

applying the same criteria, within the FY 2019 and 2020 timeframe was expected. 

In FY 2020, Treasury witnessed a greater number of incidents being reported, this is 

indicative of increased threat activity coupled with enhanced detection and mitigation 

capabilities. The enhanced capabilities factored into the elevated target projection for FY 

2020. Natural variation in actual results also played a role in the variation from FY 2019 to 

FY 2020. The FY 2021 target was decreased to reflect improved ability to validate incidents 

prior to submission. It was decided that the FY 2022 target should remain flat from FY 2021 

numbers. 

Percentage of High and/or Critical Findings from Risk and Vulnerability Assessment (RVAs) 

or Security Architecture Review (SARs) on Tier I High Value Assets (HVAs) that are closed 

by the end of the Fiscal Year (FY):

This is a measure of how Treasury addresses the vulnerabilities and potentially exploitable 

weaknesses of its most important systems, based on its HVA assessment process. Treasury’s 

CEA performance targets are based upon the percentage of HVA system assessments that are 

conducted in accordance with the HVA assessment cycle and the closure rate of resulting 

findings and/or Plans of Action and Milestones (POAMs) within the fiscal year. Treasury has 

consistently recorded a 100% completion rate for system assessments and currently has a 

77% closure rate for associated findings and POAMs. This focus helps to ensure that the 

proper POAMs are in place for all assessed systems and that they are being acted upon in a 

timely manner. The investment will focus on remediation of vulnerabilities, as well as 

increased review and reporting on corrective actions to resolve all findings and 

recommendations discerned during the assessment process. It was decided that the FY 2022 

target should remain flat from FY 2021 numbers. 
CEA - 14 

Additionally, the FY 2020 Risk Management Rating of 70 percent was exceeded through 

mitigation of known vulnerabilities and deployment of additional cyber capabilities. This 

performance measure was discontinued for FY 2021. 

C – Changes in Performance Measures 

CEA has no changes to any performance measures from the previous year President’s Budget. 

D – Evidence-Building Activity 

CEA initiatives result from the ongoing analysis and review of current risk posture (threat, 

configuration, and operational data). This is accomplished through proactive RVAs and SARs, 

which generate data to inform leadership where critical remediation is required and to identify 

opportunities to leverage shared services to solve common problems across the Department. 

Metrics surrounding detection, attack vectors, depth into our defenses, and containment inform 

operational decisions on capabilities and configurations for the defensive and analytical 

capabilities in the Department’s cybersecurity infrastructure. The CEA is also critical to 

systematize and automate the collection of cybersecurity operational data, increasing its accuracy 

and accelerating its availability so that resources and organizational capacity can be directed in a 

timely and efficient manner. Improvements in these foundational capabilities will improve 

Treasury’s ability to use data to refine the operational decision-making process. 

Section III – Additional Information 

A – Summary of Capital Investments 

Capital investments that support CEA are included in the Departmental Offices plan. 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Department-wide Systems and 

Capital Investments Program 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2022 
DSCIP - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

1.1– Appropriations Detail Table ............................................................................................... 4

1.2– Budget Adjustments Table .................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals ............................................................................................................ 5

Section II – Annual Performance Plan and Report ................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Budget and Performance by Budget Activity ...................................................................... 6

2.1 – DSCIP Resources and Measures ........................................................................................ 6

Department-wide Systems and Capital Investments Program Fund Budget and Performance .. 6

Section III – Additional Information .......................................................................................... 7

A – Summary of Capital Investments ......................................................................................... 7
DSCIP - 3 

Section I – Budget Request 

A – Mission Statement 

Improve infrastructure, modernize business processes, and increase efficiency through 

technology and capital investments that support the missions of Treasury bureaus and programs. 

B – Summary of the Request 

An icon of American architecture, the Main Treasury Building is the third oldest Federal 

building in Washington, after the Capitol and the White House, in continuous use. Unlike the 

Capitol or the White House, the Main Treasury Building is not under the jurisdiction of the 

Architect of the Capitol or GSA, respectively, but rather is the direct responsibility of the 

Treasury Department. The bulk of funding for its care through capital investments is provided 

through Department-wide Systems and Capital Investments Program (DSCIP). 

The Main Treasury Building was built with Congressional appropriations from 1836 to1869. 

From 1909 to 1910, the building received a special appropriation to modernize its infrastructure, 

which helped to bring the building into the 20th century. A major fire in 1996 resulted in a series 

of Congressional appropriations that ushered the Treasury Building into the 21st century. Now, 

25 years later, the building faces a magnitude of issues that need to be addressed, some of which 

pose life safety concerns, including issues related to Treasury and the Freedman’s Bank 

Buildings’ external and internal infrastructure and security posture. 

In FY 2016, Treasury conducted an internal facilities condition assessment of both buildings and 

found a range of needs to be addressed. Problems that were identified include immediate health 

and safety, potential system and mechanical failures, as well as areas in need of building 

modernization to improve efficiency, safety, and security. In FY 2017, an external architectural 

and engineering firm validated an estimated $98.7 million in remaining costs from that report. 

In addition to validating the identified repair needs, the report identified additional repairs and 

cyclic investment needs that are required over the next 20 years to maintain the building in 

adequate working order. 

Treasury’s FY 2022 request reflects a limited subset of those previously identified needs, which 

the Department plans to continue to work to address over time. Treasury will use a three-step 

long-term strategy to continue to maintain and modernize its owned spaces: (1) secure the 

building’s outer envelope; (2) conduct a condition assessment to identify additional needs 

associated with the buildings’ continual aging and deferred maintenance; and (3) based on this 

assessment, conduct an holistic modernization of the building’s systems and infrastructure. 

The FY 2021 Operating Plan prioritized $0.550 million to update the facility condition 

assessment. The FY 2022 request prioritizes work on the outer envelope of the Main Treasury 

Building. 

May 2021, Treasury Departmental Offices provided notification of our intent to reallocate $3.7 

million originally provided as part of the FY 2021 Department-wide Systems and Capital 

Investment Program (DSCIP) appropriation to meet pressing needs associated with the 
DSCIP - 4 

SolarWinds incident. In parallel with this change, DO is realigning currently available DSCIP 

resources towards priority capital facilities investments. 

1.1– Appropriations Detail Table 

Dollars in Thousands FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Department-Wide Systems and 

Capital Investments Program 0 $6,118 0 $6,118 0 $6,118 NA 0.0% 

Subtotal New Appropriated 

Resources 0 $6,118 0 $6,118 0 $6,118 NA 0.0% 

Total Budgetary Resources 0 6,118 0 $6,118 0 $6,118 NA 0.0% 

1.2– Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 Operating Plan 0 $6,118 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $0 

Non-Recurring Costs 0 ($6,118) 

MT Exterior Repairs 0 ($5,118) 

MT/FBB interior repairs 0 ($450) 

Condition Assessment 0 ($550) 

Subtotal Changes to Base 0 ($6,118) 

FY 2022 Current Services 0 $0 

Program Changes: 

Program Increases: 0 $6,118 

Main Treasury Exterior Repairs 0 $6,118 

FY 2022 President's Budget Request 0 $6,118 

C – Budget Increases and Decreases Description 

Non-Recurring Costs ................................................................................... -$6,118,000 / -0 FTE 

This amount represents non-recurring initial investments. 

Program Increases ..................................................................................... +$6,118,000 / +0 FTE

Main Treasury Exterior Repairs +6,118,000 / +0 FTE 

Funds the multiyear building maintenance effort to prevent more expensive repair work. 

Exterior repairs are needed to address weather-related water intrusion which are impacting 

interior spaces, creating the need for water damage remediation and mold control. Work items 

include: 

• Repairing failed masonry joints to protect from moisture penetration, cleaning the stone 

surfaces, and repairing damaged stone; 

• Repairing or replacing window frames suffering varying degrees of damage from years of 

weather exposure. Window work will require scaffolding which is expensive to rent/contract. 
DSCIP - 5 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 0 0 0 

11.3 - Other than full-time permanent 0 0 0 

11.5 - Other personnel compensation 0 0 0 

Total Personnel and Compensation Benefits $0 $0 $0 

32.0 - Land and structures 3,195 6,118 6,118 

Total Non-Personnel $3,195 $6,118 $6,118 

Total Obligations $3,195 $6,118 $6,118 

 

Full-time Equivalents (FTE) 0 0 0 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

Department-wide Systems and Capital Investments Program 

For development and acquisition of automatic data processing 

equipment, software, and services and for repairs and renovations 

to buildings owned by the Department of the Treasury, 

$6,118,000, to remain available until September 30, [2023]2024: 

Provided, That these funds shall be transferred to accounts and in 

amounts as necessary to satisfy the requirements of the 

Department’s offices, bureaus, and other organizations: Provided 

further, That this transfer authority shall be in addition to any other 

transfer authority provided in this Act: Provided further, That none 

of the funds appropriated under this heading shall be used to 

support or supplement ‘‘Internal Revenue Service, Operations 

Support’’ or ‘‘Internal Revenue Service, Business Systems 

Modernization.’’(Consolidated Appropriations Act, 2021, Public 

Law 116-260)

E – Legislative Proposals 

DSCIP has no legislative proposals. 
DSCIP - 6 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The DSCIP account provides a mechanism for Treasury to fund capital investments that have 

complex contracts for projects that span several fiscal years. Through the DSCIP account, 

Treasury has been able to develop a Treasury-wide human resources information technology 

solution, as well as fund the continual repair and restoration of the Main Treasury Building and 

the Freedman’s Bank Building. 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

B – Budget and Performance by Budget Activity 

2.1 – DSCIP Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Department-wide Systems 

and Capital Investments 

Program (DSCIP) 

$5,000 $3,000 $4,426 $4,000 $6,118 $6,118 $6,118 

Budget Activity Total $5,000 $3,000 $4,426 $4,000 $6,118 $6,118 $6,118 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

Actual appropriation levels for FY 2016 - FY 2021 as reflected in the annual operating plan and the FY 2022 request level 

Department-wide Systems and Capital Investments Program Fund Budget and 

Performance 

($6,118,000 from direct appropriations) 

Treasury Owned Buildings - Repairs and Renovations 

Treasury Operations has continued to strategically focus on restoring the health of the building 

envelope (shell), in an effort to correct the deteriorating building structure and infrastructure. 

Components of the Main Treasury building that have been repaired, replaced, or funded, include 

new roofs FY 2019/2021 and repairs to 40 percent of the windows FY 2015/2017. The 

Freedman’s Bank Building components that have been repaired, replaced, or funded/planned 

include new roofs FY 2017/2019, repair of the domestic water line FY 2020/2022, and 

replacement of all windows FY 2009/2011. Funding and completion of these exterior items 

represent significant progress towards the preservation of the two buildings, maintaining a safe 

and healthy workplace, and reducing damage to the interior plaster and paint. 

The FY 2021 award of the expanded Facility Condition Assessment (FCA) will provide an 

update and validation to the immediate repair needs previously identified that will identify longterm capital expenses based on the expected useful life of the building systems and 
DSCIP - 7 

components. In addition to immediate repairs and long-term needs, the expanded FCA will 

provide feedback on code compliance, energy saving opportunities, and ADA compliance. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/summary-of-capital-investments


Department of the Treasury 

Office of Terrorism and 

Financial Intelligence 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2022 

 
TFI - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

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

1.2 – Budget Adjustments ........................................................................................................... 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance/Workforce Indicators by Budget Activity ................................... 9

2.1.1 – Terrorism and Financial Intelligence Resources and Measures ..................................... 9

Terrorism and Financial Intelligence Budget and Performance ............................................... 10

C– Evidence-Building Activity ................................................................................................. 12

Section III – Additional Information ........................................................................................ 12

A – Summary of Capital Investments ....................................................................................... 12
TFI - 3 

Section I – Budget Request 

A – Mission Statement 

Enhance national security by applying Treasury’s unique policy, enforcement, intelligence, and 

regulatory tools to identify, disrupt and disable terrorists, criminals, and other national security 

threats to the United States and to protect the U.S. and international financial systems from abuse 

by illicit actors. 

B – Summary of the Request 

TFI requests $185.192 million, which is a $10.192 million increase from the FY 2021 enacted 

level. TFI requests these additional resources to continue to invest in its people as well as 

infrastructure, systems, and automated tools, thereby ensuring that TFI remains agile, innovative, 

and strategic in responding to the most pressing U.S. national security concerns. The FY 2022 

budget request also includes funding that represents TFI’s portion of a larger Treasury 

Departmental Offices (DO) project to modernize critical equipment and software that supports 

the DO workforce’s fundamental information technology needs, and replace servers that have 

now reached the end of their useful life. The budget prioritizes funding for Treasury’s targeted 

financial tools that protect the U.S. and international financial system from abuse, as well as 

countering the financial networks that support terrorists, weapons proliferators, organized 

transnational crime, rogue regimes, and other threats. 

TFI’s economic authorities continue to play an increasingly central role in countering some of 

the nation’s most critical security threats. This Administration and Congress rely upon TFI to 

develop strategies that employ all targeted financial measures, including sanctions, to proactively 

implement U.S. national security and foreign policy goals towards China, Iran, Russia, 

Venezuela, Burma, Islamic State of Iraq and Syria (ISIS) and other terrorist organizations, 

human rights abusers and corrupt actors, narcotics traffickers, and other malign and destabilizing 

actors. This request also includes targeted tools that protect the U.S. and international financial 

system from abuse by illicit actors, to include unexpected challenges such as COVID-19 related 

illicit finance concerns. As reliance upon TFI’s authorities has grown, the corresponding growth 

in personnel across TFI and increased demand placed upon secure systems requires additional 

investment in mission support areas. TFI’s infrastructure investments have been developed with 

careful consideration of the personnel increase request with the intent of developing and 

maintaining a collaboration network that facilitates our operational and policy goals. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Terrorism and Financial Intelligence 477 $169,712 551 $175,000 575 $185,192 4.4% 5.8% 

Subtotal New Appropriated Resources 477 $169,712 551 $175,000 575 $185,192 4.4% 5.8% 

Other Resources 

Reimbursable 39 $8,543 35 $10,500 41 $10,500 17.1% 0.0% 

Subtotal Other Resources 39 $8,543 35 $10,500 41 $10,500 17.1% 0.0% 

Total Budgetary Resources 516 178,255 586 $185,500 616 $195,692 5.1% 5.5% 

 Note: FTE = Full-time Equivalent employment
TFI - 4 

1.2 – Budget Adjustments 

Dollars in Thousands 

 FTE Amount 

FY 2021 Operating Plan 551 $175,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $4,817 

Pay Annualization (1.0% average pay raise) 0 $234 

Pay Raise (2.7% average pay raise) 0 $2,119 

FERS Contribution Increase 0 $836 

Non-Pay 0 $1,628 

Other Adjustments: 8 $0 

Contracts 0 ($1,330) 

FTE Adjustment 8 $1,330 

Subtotal Changes to Base 8 $4,817 

FY 2022 Current Services 559 $179,817 

Program Changes: 

Program Adjustments 16 $0 

Non-recur 0 ($2,750) 

FTE Adjustment 16 $2,750 

Program Increases: 0 $5,375 

Replacement of End of Life Servers 0 $1,659 

IT Modernization 0 $3,716 

FY 2022 President's Budget Request 575 $185,192 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ...................................................... +$4,817,000 / +0 FTE 

Pay Annualization (1.0%) +$234,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$2,119,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$836,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$1,628,000 / +0 FTE 

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

equipment. 

Other Adjustments ................................................................................................... +$0/ +8 FTE 

Contracts -$1,330,000 / -0 FTE 

As a result of hiring delays due to the pandemic, funds initially intended to support FTE 

increases were applied to finance one-time contract requirements in FY 2021. These funds are 

no longer needed to support contracts in FY 2022. 

 
TFI - 5 

FTE Adjustment +$1,330,000 / +8 FTE 

The FY 2022 Budget reflects a +8 FTE technical adjustment from the FY 2021 Enacted Budget. 

This technical adjustment reflects increased efforts at TFI to hire and on-board new staff. 

Program Adjustments .......................................................................................... +$0 / +16 FTE 

Non-recur Costs -$2,750,000 / +0 FTE 

These funds are no longer needed to support renovation requirements in FY 2022 and can 

support expanded staffing. 

FTE Adjustment +$2,750,000 / +16 FTE 

The FY 2022 Budget reflects a +16 FTE technical adjustment from the FY 2021 Enacted Budget. 

This technical adjustment reflects increased efforts at TFI to hire and on-board new staff with 

funds no longer required for use towards renovations that program anticipates will be completed 

in FY 2022. 

Program Increases ..................................................................................... +$5,375,000 / +0 FTE 

Replacement of End of Life Servers +$1,659,000 / +0 FTE 

Funds are requested for TFI’s portion of a larger DO project to replace servers that have now 

reached the end of their useful life. 

April 2021 marks one year that DO’s workforce has been in a remote work environment due to 

the coronavirus pandemic. The challenges, weaknesses, and vulnerabilities of DO’s current 

infrastructure have been magnified in a way that may not have been apparent previously. 

Separately, the SolarWinds incident, which impacted the Treasury Department and other federal 

departments and agencies on a much broader level, has exacerbated an already tenuous situation. 

This is particularly acute with respect to Treasury’s server infrastructure. Over the past several 

months, several servers have reached their end of life, and over 120 additional servers will reach 

end of life by FY 2022. If these servers are allowed to reach end of life, key IT infrastructure 

responsible for housing the data of vital programs used by every TFI employee (e.g., email and 

virtual desktops) as well as data for critical national security programs will be put at risk of 

failure or breach. 

DO has been able to negotiate extensions for some of these service contracts over the past few 

months, but this is at best a stopgap remedy. To present the most cost-effective, long-term 

solution, DO conducted several comprehensive studies to review its existing server infrastructure 

and application base. These assessments analyzed DO applications and workloads to determine 

their cloud suitability. Factors considered include: 

1) Suitability for migration to a cloud environment (i.e. whether the workload is elastic or if its 

migration presents any security concerns); 

2) Readiness to move to the cloud (i.e. understanding whether any remediation is required prior 

to migration); and 

3) Level of complexity (i.e. how critical the business processes supported are). 

 
TFI - 6 

IT Modernization +$3,716,000 / +0 FTE 

Funds are requested for TFI’s portion of a larger DO project to modernize critical equipment and 

software. Treasury leadership, over the past few years, made the conscious decision to focus 

investments and resources on DO’s policy mission. This request’s key investments include: 

1) End user equipment refreshes and enhancements to support a sustained telework 

posture. Many end user computing devices have reached the end of their useful life and 

require lifecycle replacement. Without a meaningful refresh, end user devices will fail, 

which will have an impact on staff productivity and ultimately impact Treasury’s ability to 

deliver on its mission. This refresh also encompasses equipment that would improve 

telework productivity for TFI staff. DO recently conducted a survey of IT needs and 

satisfaction. The single largest requirement set by users was for additional equipment to 

support their productivity in a remote environment.

2) Redesign of Treasury’s intranet to improve user experience, site navigation, search 

capabilities and information architecture. Improvements should simplify actions, accelerate 

processing, and increase intranet performance collectively by greater than 20 percent. 

3) Modernization of legacy applications/enhancement of existing applications. DO has a need 

to retire legacy applications built on aged technologies to reduce cybersecurity risk, 

standardize low-code platform adoption, and realize operational efficiencies through 

common systems. DO also has identified technology gaps and business process automation 

opportunities which will be prioritized to shift staff focus from low to high value work. This 

initiative will reduce the administrative burden on our IT development staff through 

automation and common tool sets. DO plans to leverage this funding to secure a dedicated 

agile development sprint team comprised of seven resources to continually improve the DO 

application portfolio. The remainder will be used to procure low-code software as a service 

(SaaS) licensing on which legacy applications will continue to be re-platformed. DO will 

prioritize legacy application modernization while integrating enhancements across mission 

support technologies (OSP Tracker, Nuvolo, Impress, etc.). 

4) Migration to managed remote access and remote desktop. DO’s current remote access and 

virtual desktop infrastructure were designed a decade ago and intended to support traveling 

staff as well as a small number of telecommuters for episodic telework and days where a 

large telework load would be supported for a day or two (such as “inclement weather 

events”). While hardware has been occasionally refreshed over the years, the underlying 

architecture has not changed over the past decade. This comes amid increased usage of 

telework flexibilities over this same period, which necessitate a new posture. DO intends to 

migrate to a new managed remote access platform which leverages a similar solution to the 

one IRS has used for its 80,000 plus users during the pandemic. This should help DO to 

leverage IRS’s implementation lessons as well as reduce the Department’s overall attack 

surface area for cyber threats. Both the new managed remote access and virtual desktop 

infrastructure will provide DO with added resiliency, support greater swings in demand, and 

scalability which does not exist in DO’s current posture.
TFI - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification Actual Estimated Estimated 

Obligations Obligations Obligations 

11.1 - Full-time permanent 63,253 74,309 80,485 

11.3 - Other than full-time permanent 431 551 568 

11.5 - Other personnel compensation 2,002 2,332 2,405 

11.9 - Personnel Compensation (Total) 65,686 77,192 83,458 

12.0 - Personnel benefits 21,544 25,125 27,128 

Total Personnel and Compensation Benefits $87,230 $102,317 $110,586 

21.0 - Travel and transportation of persons 1,397 1,367 1,394 

22.0 - Transportation of things 95 94 96 

23.2 - Rental payments to others 222 4 4 

23.3 - Communications, utilities, and miscellaneous charges 48 47 48 

24.0 - Printing and reproduction 4 0 0 

25.1 - Advisory and assistance services 15,837 20,590 19,289 

25.2 - Other services from non-Federal sources 1,089 1,892 1,914 

25.3 - Other goods and services from Federal sources 47,024 42,423 40,103 

25.4 - Operation and maintenance of facilities 27 0 0 

25.7 - Operation and maintenance of equipment 6,693 6,353 10,118 

26.0 - Supplies and materials 3,320 3,209 3,237 

31.0 – Equipment 5,043 2,009 3,682 

32.0 - Land and structures 8,598 5,194 5,221 

Total Non-Personnel $89,397 $83,182 $85,106 

Total Obligations $176,627 $185,500 $195,692 

 

Full-time Equivalents (FTE) 516 586 616 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
TFI - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

OFFICE OF TERRORISM AND FINANCIAL 

INTELLIGENCE 

Federal Funds 

SALARIES AND EXPENSES 

For the necessary expenses of the Office of Terrorism and 

Financial Intelligence to safeguard the financial system against 

illicit use and to combat rogue nations, terrorist facilitators, 

weapons of mass destruction proliferators, human rights abusers, 

money launderers, drug kingpins, and other national security 

threats, [$175,000,000] $185,192,000, of which not less than 

$3,000,000 shall be available for addressing human rights 

violations and corruption, including activities authorized by the 

Global Magnitsky Human Rights Accountability Act (22 U.S.C. 

2656 note): Provided, That of the amounts appropriated under 

this heading, up to $10,000,000 shall remain available until 

September 30, [2022] 2023. (Department of the Treasury 

Appropriations Act, 2021.)

 

 

E – Legislative Proposals 

The Office of Terrorism and Financial Intelligence has no legislative proposals. 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives 
TFI - 9 

B – Budget and Performance/Workforce Indicators by Budget Activity 

2.1.1 – Terrorism and Financial Intelligence Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $117,000 $123,000 $141,778 $159,000 $169,712 $175,000 $185,192 

Reimbursable $6,329 $6,491 $8,626 $7,756 $8,543 $10,500 $10,500 

Budget Activity Total $123,329 $129,491 $150,404 $166,756 $178,255 $185,500 $195,692 

Full-time Equivalents (FTE) 414 428 444 480 516 586 616 

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan. The FY 2016 - FY 2020 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees. 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Number of new or modified 

sanctions programs modified by 

EO or Congressional mandate 

during the fiscal year

N/A N/A N/A N/A 7 I I I 

Regulatory documents published 

in the Federal Register within 

four months of publication of an 

Executive order or Congressional 

mandate during the fiscal year

N/A N/A N/A N/A 67% 75% 75% 75% 

Designations and identifications 

released on time to the public 

without errors 

N/A N/A N/A N/A 97% 90% 90% 90% 

Conduct outreach events for the 

other US government agencies, 

the public, the business sector, 

and foreign government per 

calendar year

N/A N/A N/A N/A 0 40 60 60 

Participation in FATF 

international mutual evaluations 

and follow up reports 

N/A N/A N/A N/A 32 I I I 

Number of roundtables with 

private sector on AML/CFT 

threats, vulnerabilities, and risk 

N/A N/A N/A N/A 13 I I I 

# of overseas/domestic 

engagements with foreign 

officials by TFFC officials 

N/A N/A N/A N/A > 690 I I I 

Respond to de-confliction 

requests received from law 

enforcement

N/A N/A N/A N/A 7 days 7 days 7 days 7 days 

# of security clearances processed N/A N/A N/A N/A 1131 B B B 

Number of analytic products 

published (includes number of 

IIRs published, number of 

finished intelligence pieces 

published) 

N/A N/A N/A N/A 446 

IIRs/297 FI I I I 

Percent customer satisfaction 

with OIA products N/A N/A N/A N/A 

Customer 

Satisfaction 

Surveys not 

conducted in 

FY 2020 due 

to the 

COVID-19 

pandemic. 

74% 74% 74% 

Key: I – Indicator; B - Baseline 

Note: All performance measures are new beginning in FY 2020, so no results were reported for FYs 2016 - 2019. 
TFI - 10 

Terrorism and Financial Intelligence Budget and Performance 

($185,192,000 from direct appropriations, $10,500,000 from reimbursable resources) 

TFI has strategically applied Treasury’s powerful tools and authorities against bad actors, 

including rogue regimes, terrorist financiers, human rights abusers, proliferators of weapons of 

mass destruction, drug kingpins, and others. Since the beginning of FY 2020, Treasury has 

established four new and six modified sanctions programs. This included the use of tools and 

authorities to deter Iran’s nuclear and ballistic missile program, hindering Iran’s support of 

global terrorism, and offsetting efforts to destabilize the Middle East, Burma, Hong Kong, 

Venezuela, and others. 

On Iran, Treasury targeted terrorist financing and money laundering activity and imposed a 

series of sanctions designed to disrupt Iran’s nuclear program and its ability to acquire and sell 

conventional arms. Treasury imposed sanctions on the Iranian ambassador to Iraq responsible 

for coordinating the activity of Iran’s Islamic Revolutionary Guard Corps Quds Force (IRGCQF) throughout Iraq. Additionally, Treasury imposed sanctions on a huge network on 150 

targets in addition to metals and petrochemical companies. Through the Terrorist Financing 

Targeting Center’s (TFTC) partnership with seven Gulf nations, joint sanctions against the 

Islamic State of Iraq and Syria (ISIS), Hizballah, and Iran’s IRGC were successfully taken. 

Additionally, Treasury applied its tools and authorities against Venezuela’s Maduro regime to 

deny the regime revenue and sanctioned members of the regime for human rights violations and 

corruption. Additionally, Treasury used sanctions to place pressure on North Korea, including 

designations focused on North Korea’s continued supply of unlawful labor to overseas markets, 

which is used to generate income in contravention of United Nations sanctions. Treasury 

countered Russian illicit financing by working with foreign partners and through strategic use of 

sanctions authorities. TFI also formed an election security team in response to foreign 

interference and influence threats to the American electoral system and designated four Russialinked individuals for attempting to influence the U.S. electoral process. 

In addition to administering global programs targeting sanctionable activity, Treasury issued two 

actions under Section 311 of the USA PATRIOT Act and issued eight special collection requests 

on major illicit financing issues. On China, TFI realigned analytic resources to anticipate and 

analyze more thoroughly the security threats China poses and took action to impose costs on 

China for human rights abuses in Xinjiang and for undermining Hong Kong’s autonomy. On 

Burma, Treasury implemented a new sanctions regime in response to the Burmese military’s 

coup against the democratically elected civilian government of Burma. In coordination with the 

issuance of a new Executive Order (E.O.), Treasury designated, pursuant to that E.O. 

approximately 10 individuals and three entities connected to the military apparatus responsible 

for the coup. These actions were taken quickly and at the direction of the White House, in 

response to violence and suppression of peaceful protests over the weekend of February 21, 

2021. 

To strengthen Treasury’s ability to target and combat risks, TFI built a tailored financial 

intelligence data platform that aggregates and overlays TFI data holdings. This platform hosts 

foreign government information, open source corporate registry information, and Financial 
TFI - 11 

Action Task Force (FATF) publications, among other resources, to help TFI personnel make 

more effective national security decisions. 

The Office of Terrorist Financing and Financial Crimes-led Illicit Finance Fusion Cell (IFFC), an 

interagency body established in 2018 to use advanced data analytics and public records in 

support of Treasury’s national security priorities, partnered closely with the TFI Chief Data 

Officer to acquire and ingest over 300 million corporate records into the TFI data platform. The 

IFFC’s methodology prioritizes detecting anomalous patterns in publicly available data (PAI) 

that are both indicative of illicit activity and uncover new information previously unknown to the 

interagency community. The IFFC expanded in 2020 beyond its original focus on Iran to 

produce analysis of corporate networks conducting illicit activity, including corruption, bribery, 

and other financial crimes, in support of rogue actors in China, Russia, Lebanon, Syria, Bahrain, 

Venezuela, Malta, and Turkey. The IFFC’s unique methodology detected previously unreported 

illicit or suspicious activity, enhanced foreign engagement, and informed targeting efforts. 

The introduction of new government programs in response to COVID-19 and the economic 

distress caused by the pandemic resulted in an uptick in fraud and illicit activities. Treasury 

worked with the federal banking community to coordinate an interagency response and publish 

advisories for financial institutions (Advisories). 

In FY 2020, Treasury further expanded its role in cybersecurity through the creation of the Cyber 

Analysis Office, which worked with the governmental partners and major financial institutions to 

gather intelligence aimed at disrupting global cyber theft operations. OIA’s Cyber Analysis 

Office also augmented analytic resources to detect and analyze emerging trends in state and nonstate use of virtual currencies to undermine U.S. national security. In September 2020, TFI 

worked with the Department of Justice and Department of Homeland Security to sanction two 

Russian nationals for their involvement in a sophisticated phishing campaign that resulted in 

losses of at least $16.8 million in 2017 and 2018. 

Terrorism and Financial Intelligence Offices Supporting the AML/CFT Mission

The NDAA legislation codified practices that will enable Treasury to address key threats, 

including traditional methods of money laundering and emerging issues related to financial 

technology and virtual currency. The law also creates an expansive whistleblower rewards 

system that is expected to increase BSA enforcement. 

TFI also leveraged its partnerships to strengthen the international regulatory framework for 

AML/CFT. In FY 2020, Treasury strengthened its programs that were established during the 

U.S. presidency the FATF, the intergovernmental body that sets global AML/CFT standards. 

TFI led efforts focused on virtual currencies and the combating of terrorist financing and the 

financing of weapons of mass destruction, to strengthen the U.S. and international financial 

systems. Under Treasury’s leadership, the FATF revised its standards to also apply to virtual 

assets and virtual asset service providers. The revision included commitments from 205 

countries to comply with the FATF standards and to effectively regulate and supervise virtual 

asset service providers for anti-money laundering and counter the financing of terrorism. In 

addition, the FATF assisted countries in combating terrorist financing, which included training 
TFI - 12 

prosecutors and judges from around the world on how to conduct terrorist financing 

investigations and prosecute terrorist financers. 

The FATF adopted new standards on proliferation financing and advanced work on COVID-19 

AML/CFT risks and trade-based money laundering. The enhancements on these standards 

ensures that jurisdictions around the world will equip their financial institutions and other 

covered entities with targeted information on proliferation financing risk that can be used to 

detect shell companies and other individuals or entities acting on behalf of designated persons. 

Treasury also augmented resources to detect and analyze emerging trends in state and non-state 

use of virtual currencies to undermine U.S. national security and led the G7 in producing an 

annex on ransomware in the Ministerial statement on digital payments. 

C– Evidence-Building Activity 

TFI is an organization of 900+ people in five independent but complementary offices that work 

together using tools and authorities, including sanctions, to achieve U.S. national security and 

foreign policy goals. This is done through strategies that employ our policy, law enforcement, 

intelligence, and regulatory tools to identify, disrupt, and dismantle threats, such as rogue 

regimes, terrorist organizations, human rights abusers, drug traffickers, money launders, 

proliferators of weapons of mass destruction, and more. Our comprehensive data analytics, 

regulatory reporting, foreign government information, and record keeping rules inform our 

approach to policy implementation, diplomatic engagement, sanctions, designation targets, and 

more. Similar sources of analytics and data are also used to ensure that the domestic and 

international financial systems are protected from abuse by illicit actors. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Committee on Foreign 

Investment in the United States 

Activities 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2022 

 
CFIUS - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table .............................................................................................. 5

1.2.1 – CFIUS Fund Budget Adjustments Table ........................................................................ 5

1.2.2 – Departmental Offices Budget Adjustments Table .......................................................... 6

C – Budget Increases and Decreases Description ....................................................................... 6

1.3– Object Classification (Schedule O) Obligations ................................................................. 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity ...................................................................... 9

2.1.1 – Treasury CFIUS Activities Resources and Measures ..................................................... 9

2.1.2 – Other Member CFIUS Activities Resources and Measures ........................................... 9

CFIUS Budget and Performance ................................................................................................ 9

C – Changes in Performance Measures .................................................................................... 10

D– Evidence-Building Activity ................................................................................................ 10

Section III – Additional Information ........................................................................................ 10

A – Summary of Capital Investments ....................................................................................... 10
CFIUS - 3 

Section I – Budget Request 

A – Mission Statement 

Review certain transactions involving foreign investment in the United States and certain real 

estate transactions by foreign persons to determine the effect of such transactions on the national 

security of the United States and to address any identified national security risks. 

B – Summary of the Request 

The Committee on Foreign Investment in the United States (CFIUS) was established in 1975 

under Executive Order 11858 to monitor the impact of foreign investment in the United States, 

and to coordinate and implement federal policy on such investment. CFIUS is composed of nine 

voting member agencies. The Committee’s unique design leverages the skills, subject matter 

expertise, and integrated analysis of Committee members and other relevant agencies. CFIUS 

voting members include: 

 Department of the Treasury 

 Department of Commerce 

 Department of Defense 

 Department of Energy 

 Department of Homeland Security 

 Department of Justice 

 Department of State 

 Office of Science Technology and Policy 

 Office of the United States Trade Representative 

As both Chair and member of CFIUS, Treasury is responsible for leading CFIUS in establishing 

policies, implementing processes and functions, and managing its daily operations. Treasury 

participates in every aspect of CFIUS, including reviews and investigations, policy and 

international relations, mitigation monitoring and enforcement, non-notified transaction analysis, 

legal support, and national security threat assessments. The Office of International Affairs (IA) 

is responsible for case management and coordination and representing the Committee to parties 

that file notices or declarations. The Office of General Counsel (OGC) provides legal support to 

IA and is responsible for certain analyses conducted on each notice filed with CFIUS. 

The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) strengthened 

CFIUS to better address national security concerns arising from some types of investments and 

transactions that were previously outside its jurisdiction. Additionally, FIRRMA modernized 

Committee processes to better enable timely and effective reviews of covered transactions. 

FIRRMA also established the CFIUS Fund (the Fund), to be administered by the chairperson 

(the Secretary of the Treasury), to accept appropriated funds for these expanded responsibilities 

and functions, and to collect filing fees. 

The Treasury Department issued a final rule—effective August 27, 2020—establishing fees for 

any formal written notice of a “covered transaction” or “covered real estate transaction” filed 

with CFIUS. The fee applies to transactions filed as voluntary notices and not to transactions 

submitted as declarations (an abbreviated notification form). The revenue generated from the 

filing fees will offset some of the expenses associated with CFIUS’s activities to protect U.S. 
CFIUS - 4 

national security. The fee amount is based on the value of the transaction, according to tiers set 

forth in the rule, and range from $750 to $300,000. 

Pursuant to the final rule establishing filing fees, CFIUS collected over $3 million in filing fees 

in FY 2020, all of which were deposited into the General Fund of the Treasury. For FY 2021, 

over $11 million has been collected through May 21, 2021. While informed by historical 

transaction data, it is inherently difficult to estimate expected filing fee collections, given the 

number of external factors that influence the volume and nature of CFIUS filings in any given 

year—especially in the first year of a new regulatory regime. FY 2020 collections differ from 

the estimate assumed in the FY 2020 budget request for several reasons: that estimate was 

prepared before the final FIRRMA regulations and fee scale were developed and finalized; 

Treasury’s fee rule became effective later than assumed in the FY 2020 budget request; and, the 

COVID-19 pandemic affected global mergers and acquisition activity, which tends to broadly 

correlate with CFIUS filings. 

Case volume has increased significantly in recent years, from 172 notices formally reviewed in 

calendar year (CY) 2016 to 325 cases (comprised of 231 notices and 94 declarations reviewed 

under the critical technology pilot program) formally reviewed in CY 2019. The expanded 

jurisdiction authorized by FIRRMA took effect February 13, 2020. In FY 2021, a planned final 

rule took effect, which modified the mandatory declaration requirement for certain transactions 

involving U.S. businesses that produce, design, test, manufacture, fabricate, or develop one or 

more critical technologies. As 2020 data is not yet publicly available, the case volume reported 

here does not reflect the full impact of that legislation. The FY 2022 budget requests resources 

necessary to handle an anticipated workload of 1,000 cases per year (including significantly 

expanded activity with respect to non-notified transactions), mitigation monitoring, and 

international engagement. 

Treasury requests $20 million for the CFIUS Fund in upfront appropriations that will be offset 

by an estimated $20 million in offsetting collections from filing fees, of which $15 million is 

proposed for transfer to Treasury to fund capital investments and staff to support Committee 

activities. The remaining $5 million will be available for transfers to CFIUS member agencies to 

facilitate, for example, interagency connectivity with Treasury’s information technology (IT) and 

case management systems, and to address other emerging needs. 
CFIUS - 5 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Treasury CFIUS Activities 0 $15,000 0 $15,000 0 $15,000 NA 0.0% 

Other Member CFIUS Activities 0 $5,000 0 $5,000 0 $5,000 NA 0.0% 

New Appropriated Resources - 

Member Agencies 

Treasury Departmental Offices S&E 56 $22,341 93 $22,661 120 $24,556 29.0% 8.4% 

Subtotal New Appropriated Resources 56 $42,341 93 $42,661 120 $44,556 29.0% 4.4% 

Other Resources 

Anticipated User Fees - CFIUS Fund 0 ($20,000) 0 ($20,000) 0 ($20,000) NA 0.0% 

Subtotal Other Resources 0 ($20,000) 0 ($20,000) 0 ($20,000) NA 0.0% 

Total Budgetary Resources 56 22,341 93 $22,661 120 $24,556 29.0% 8.4% 

*Treasury Departmental Offices S&E values and requests are reflected here for illustrative purposes. Those resources are being requested for the 

Departmental Offices S&E Account. 

**Treasury FY 2022 CFIUS Activities total $39.6 million - $15 million transferred from the CFIUS Fund and $24.6 million requested for the 

Departmental Offices S&E Account. 

***The FY 2020 actuals for user fees collected was $3.1 million. FY 2020 collections were impacted by the timing of the final rule issuance and 

decreases to global merger and acquisition activity as a result of the COVID-19 pandemic. 

 

1.2.1 – CFIUS Fund Budget Adjustments Table 

The FY 2022 total request for Treasury is $39.6 million, with requested funding increases shown 

in the two Budget Adjustment tables below: 

Dollars in Thousands 

Dollars in Thousands FTE Amount 

FY 2021 Operating Plan 0 $20,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $0 

Non-Recurring Costs 0 $0 

Subtotal Changes to Base 0 $0 

FY 2022 Current Services 0 $20,000 

Program Changes: 

Anticipated User Fees - CFIUS Fund 0 ($20,000) 

FY 2022 President's Budget Request 0 $0 
CFIUS - 6 

1.2.2 – Departmental Offices Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 Operating Plan 93 $22,661 

Transfer in from CFIUS Fund $15,000 

FY 2021 DO SE CFIUS Base 93 $37,661 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $544 

Pay Annualization (1.0% average pay raise) 0 $40 

Pay Raise (2.7% average pay raise) 0 $326 

FERS Contribution Increase 0 $150 

Non-Pay 0 $28 

Non-Recurring Costs 0 ($3,013) 

Non-Recur to CFIUS Investments 0 ($3,013) 

Subtotal Changes to Base 0 ($2,469) 

FY 2022 Current Services 93 $35,192 

Program Changes: 

Program Increases: 27 $4,364 

Staffing to Support CFIUS Caseload Growth 27 $4,364 

Subtotal Program Changes 27 $4,364 

FY 2022 President's Budget Request 120 $39,556 

Note: CFIUS Fund transfers to non-Treasury agencies of $5 million are not included in this table.

C – Budget Increases and Decreases Description 

Offsetting User Fees -$20,000,000 / -0 FTE 

Treasury and IA anticipate collection of filing fees that will be credited to the Fund as offsetting 

collections. 

Transfer in from CFIUS Fund +$15,000,000 / +0 FTE 

The CFIUS Fund anticipates transferring $15.0 million dollars to the DO Salaries and Expenses 

account to provide for Treasury DO CFIUS activities. 

Maintaining Current Levels (MCLs) .......................................................... +$544,000 / +0 FTE

Pay Annualization (1.0%) +$40,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$326,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$150,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$28,000 / +0 FTE 

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

equipment. 
CFIUS - 7 

Non-Recurring Costs .................................................................................. -$3,013,000 / -0 FTE 

CFIUS will non-recur costs associated with configuring secure spaces for new CFIUS staff. This 

money is anticipated to be reinvested as staff on-board. 

Program Increases ................................................................................... +$4,364,000 / +27 FTE 

Staffing to Support Caseload Growth +$4,364,000 / +27 FTE 

Increase in CFIUS staffing to continue in light of anticipated program growth. 

1.3– Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 0 0 0 

11.9 - Personnel Compensation (Total) 0 0 0 

12.0 - Personnel benefits 0 0 0 

Total Personnel and Compensation Benefits $0 $0 $0 

94.0 - Financial Transfers 15,000 20,000 20,000 

Total Non-Personnel $15,000 $20,000 $20,000 

Total Obligations $15,000 $20,000 $20,000 

 

Full-time Equivalents (FTE) 0 0 0 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
CFIUS - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

Federal Funds 

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED 

STATES FUND 

(Including transfer of funds) 

For necessary expenses of the Committee on Foreign Investment in 

the United States, $20,000,000, to remain available until expended: 

Provided, That the chairperson of the Committee may transfer 

such amounts to any department or agency represented on the 

Committee (including the Department of the Treasury) subject to 

advance notification to the Committees on Appropriations of the 

House of Representatives and the Senate: Provided further, That 

amounts so transferred shall remain available until expended for 

expenses of implementing section 721 of the Defense Production 

Act of 1950, as amended (50 U.S.C. 4565), and shall be available 

in addition to any other funds available to any department or 

agency: Provided further, That fees authorized by section 721(p) 

of such Act shall be credited to this appropriation as offsetting 

collections: Provided further, That the total amount appropriated 

under this heading from the general fund shall be reduced as such 

offsetting collections are received during fiscal year [2021] 2022, 

so as to result in a total appropriation from the general fund 

estimated at not more than [$15,000,000]$0. (Department of the 

Treasury Appropriations Act, 2021.)

E – Legislative Proposals 

CFIUS has no legislative proposals. 
CFIUS - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

B – Budget and Performance by Budget Activity 

2.1.1 – Treasury CFIUS Activities Resources and Measures 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Treasury CFIUS Activities 0 0 0 0 $15,000 $15,000 $15,000 

Budget Activity Total 0 0 0 0 $15,000 $15,000 $15,000 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Timely Review of CFIUS 

cases 100 100 100 100 100 100 100 100 

Key: DISC - Discontinued; B - Baseline 

2.1.2 – Other Member CFIUS Activities Resources and Measures 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Other CFIUS Activities 0 0 0 0 $5,000 $5,000 $5,000 

Budget Activity Total 0 0 0 0 $5,000 $5,000 $5,000 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

CFIUS Budget and Performance 

($20,000,000 from direct appropriations): 

In February 2020, Treasury published final regulations implementing FIRRMA. These 

regulations effectuated FIRRMA's expansion of the jurisdiction of CFIUS to review certain noncontrolling, non-passive investments by foreign persons into certain types of U.S. businesses, as 

well as certain transactions by foreign persons involving real estate in the United States. The 

regulations also implemented mandatory declarations for two types of transactions—where a 

foreign government is acquiring a “substantial interest” in certain U.S. businesses, and 

transactions involving certain U.S. businesses that produce, design, test, manufacture, fabricate, 

or develop one or more critical technologies. Additionally, the regulations created an exception 

to the mandatory declaration provision for investments by certain foreign persons defined as 

“excepted investors” based on their ties to certain countries identified as “excepted foreign 

states,” and their compliance with certain laws, orders, and regulations. In May 2020, Treasury 

initiated the collection of filing fees for notices filed with CFIUS and launched a secure webbased portal for parties to submit notices and declarations. 
CFIUS - 10 

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

completing national security reviews of transactions notified to the CFIUS to ensure that the 

CFIUS process is timely and efficient. The target (100 percent) was met in CY 2020. IA’s 

target for this measure in CY 2021 and CY 2022 is 100 percent. 

C – Changes in Performance Measures 

CFIUS has no changes to the performance measures. 

D– Evidence-Building Activity 

In May 2020, CFIUS began using a new case management system and requiring use of a public 

portal to enable a more secure and structured intake of filings. The case management system has 

already improved administrative efficiency, and it will remain in development through 2021. In 

addition to adding capabilities to enhance collaboration and record retrieval, the Office of 

Investment Security (OIS) is also integrating machine-learning capabilities to better analyze 

CFIUS data, automate production of metrics and displays of data, and create template wizards to 

standardize documents. Complementary to this effort, OIS is building, improving, and 

expanding databases of case information to facilitate future analytic efforts. Such analyses will 

provide greater insight into Committee decisions and performance over time, as well as 

perspectives on broader market activities and trends. CFIUS evidence-building activities are 

reflected in Section II D of the Departmental Offices Salaries & Expenses Congressional 

Justification. Additionally, refer to the Executive Summary for a discussion of Treasury-wide 

evidence-building functions. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investment resources, including major information technology and nontechnology investments related to CFIUS can be found with other DO IT investments at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx 


COVID - i

Treasury Coronavirus 

Relief, Response, Aid, and Recovery Programs

Mission Statement

Continue to administer multiple relief and recovery programs authorized through the Families 

First Coronavirus Response Act (FFCRA), Coronavirus Aid, Relief, and Economic Security Act

(CARES), Consolidated Appropriations Act (CAA), 2021, and the American Rescue Plan Act

(ARP). The responsibilities that have been assigned to the Treasury Department are central to the 

Administration’s overall relief and recovery agenda. They offer unique opportunities to secure a 

robust, equitable recovery through tools including state and local aid, rental assistance to 

struggling tenants, help for homeowners facing foreclosure, and the provision of capital to 

communities that have traditionally been left behind.

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority1

O bligations 2 Enacted

Budget 

Authority

Estimated

O bligations

Budget 

Authority

AMO UNT AMO UNT AMO UNT AMO UNT AMO UNT

Statute

FFCRA 706,000 200,988 0 408,000 97,000

CARES Ac t 1,059,961,350 485,667,054 0 68,810,684 38,332,000

CAA, 20213

0 0 (277,940,257) 198,731,500 1,801,400

ARP 0 0 847,843,900 830,263,500 20,634,700

Total $1,060,667,350 $485,868,042 $577,805,643 $1,098,213,684 $60,865,100 

Total Full-time Equivalents (FTE) 2 1 2 0 221 221 264

Treasury Amounts in the U.S. Government's COVID-19 Response

1Enacted budget authority includes varying periods of availibility depending on the program legislation.

2Obligations are based on FY 2022 President’s Budget estimates.

3

Section 1003 of the CAA, 2021, rescinded unobligated balances from the CARES Act 2020 appropriation to the Economic Stabilization 

Program; the ultimate effect of Sec. 1003 rescinded $478,796,257,000 from this program.
COVID - ii

Table of Contents

Section I – Vision, Purpose and Context..................................................................................... 1

A – Enacted Legislation........................................................................................................................1

B – Strategic Approach.........................................................................................................................2

Section II – Program Summary................................................................................................... 4

A – Assistance for Taxpayers...............................................................................................................4

1.1 Economic Impact Payments..................................................................................................4

1.2 Employer Refundable Credits...............................................................................................4

1.3 Child and Dependent Care Tax Credits, Advance Payments of Child Tax Credit, Child Tax 

Credit, and Earned Income Tax Credit Changes.........................................................................6

B – Assistance to American Industry & Small Businesses...................................................................7

1.1 Transportation Services.........................................................................................................8

1.2 Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation 

Workers.......................................................................................................................................8

1.3 Economic Stabilization Program...........................................................................................9

C – Assistance for State, Local, & Tribal Governments.......................................................................9

1.1 Coronavirus Relief Fund.......................................................................................................9

1.2 Homeowner Assistance Fund.............................................................................................. 10

1.3 Emergency Rental Assistance ............................................................................................. 10

1.4 State Small Business Credit Initiative (SSBCI).................................................................. 11

D – Community Development............................................................................................................ 11

1.1 Community Development Financial Institutions Fund, Emergency Support ..................... 11

1.2 Emergency Capital Investment Program ............................................................................ 12

E – COVID Program Administration and Oversight.......................................................................... 13

1.1 Bureau of the Fiscal Service (Fiscal Service) ..................................................................... 13

1.2 IRS COVID Response (Admin.)......................................................................................... 14

1.3 Departmental Offices.......................................................................................................... 14

1.4 Special Inspector General for Pandemic Recovery............................................................. 15

1.5 Office of the Inspector General........................................................................................... 16

1.6 Treasury Inspector General for Tax Administration ........................................................... 16

Section III –Appropriations Language ..................................................................................... 18

A – Treasury Administrative Provisions............................................................................................. 18

1.1 Special Inspector General for Pandemic Recovery............................................................. 18

1.2 Administrative Funding Transfer Authority ....................................................................... 18
COVID - 1

Section I – Vision, Purpose and Context

A – Enacted Legislation

The coronavirus pandemic has had unprecedented, widespread impacts on the economy and 

caused significant disruptions to industries and families across America. FY 2020 saw the start 

of the COVID-19 pandemic and in response, Congress passed the Families First Coronavirus 

Response Act (FFCRA) (P.L. 116-127) and the Coronavirus Aid, Relief, and Economic Security 

Act (CARES) (P.L. 116-136). As the pandemic continued into FY 2021, Congress provided

additional relief in the Consolidated Appropriations Act (CAA), 2021 (P.L. 116-260) and passed 

the American Rescue Plan Act (ARP) (P.L. 117-2). The legislative intent and focus of the 

Department of the Treasury (Treasury) is to provide fast, effective and efficient direct economic 

assistance to American workers, families, small businesses, and industries.

The FFCRA was enacted on March 18, 2020. The FFCRA, amended by the COVID-related Tax 

Relief Act of 2020, and the ARP, provides small and midsize employers refundable tax credits 

that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages 

to their employees for leave related to COVID-19. The FFCRA gives businesses with fewer than 

500 employees funds to provide employees with paid sick and family and medical leave for 

reasons related to COVID-19, either for the employee's own health needs or to care for family 

members.

 

The CARES Act, enacted on March 27, 2020, created a variety of programs to address the 

COVID-19 pandemic. The CAA, enacted on December 27, 2020, created several new programs 

and maintained many of the CARES Act programs by adding new phases, new allocations, and 

new guidance.

The ARP continues many of the programs started by the CARES Act and CAA, 2021. The ARP

also created a variety of new programs to address continuing pandemic-related crises, and fund 

recovery efforts as the United States begins to emerge from the pandemic.

On April 28, 2021, the President announced the American Jobs Plan (AJP) and the American 

Families Plan (AFP). The AJP aims to create millions of jobs, rebuild the country’s physical 

infrastructure and workforce, and spark innovation and manufacturing here at home, whereas, 

the AFP intends to help families cover the basic expenses, lower health insurance premiums, and 

continue the ARP’s reduction to child poverty. Together, the AJP and AFP aspires to reinvest in 

the future of the American economy and American workers with the goal of giving American 

industries the competitive advantage to out-compete countries around the world.

Treasury categorizes enacted COVID related programs into four categories: assistance to

taxpayers, which includes individuals and businesses, assistance to American industry and small 

businesses, assistance for State, Local, and Tribal Governments, and Community Development.

Treasury also received funding for program administration and oversight. 
COVID - 2

B – Strategic Approach

In response to enacted legislation, Treasury has created multiple programs to aid the American 

public including establishing the Office of Recovery Programs, managed by the Chief Recovery

Officer, to lead the Department’s implementation of various COVID-19 related programs. This

office will be principally focused on efficiently establishing and administering Treasury’s 

programs to support an equitable and swift recovery from the economic challenges precipitated 

by the COVID-19 pandemic.

Dollars in Thousands

2020 Enacted 2020 Enacted 2021 Enacted 2021 Enacted

FFCRA CARES Act CAA, 2021 ARP

AMO UNT AMO UNT AMO UNT AMO UNT

Assistance to Taxpayers 2

Ec onomic Impa c t P a yme nts 3

0 276,592,000 145,222,000 374,015,000

U.S . Corona virus Re funda ble Cre dits 4

691,000 100,480,000 0 53,378,000

Assistance to Industry & Small Businesses

Tra nsporta tion S e rvic e s 0 0 1,950,000 0

P a yroll S upport P rogra m, Air Ca rrie r Worke r S upport & 

P a nde mic Re lie f for Avia tion Worke rs 0 31,900,000 16,000,000 14,990,000

Ec onomic S ta biliza tion P rogra m5

0 499,875,000 (478,671,257) 0

Assistance for State, Local & Tribal Governments

Corona virus Re lie f Fund 0 150,000,000 0 362,000,000

Home owne r Assista nc e Fund 0 0 0 9,915,400

Eme rge nc y Re nta l Assista nc e 0 0 24,978,500 21,517,000

S ta te S ma ll Busine ss Cre dit Initia tive (S S BCI) 0 0 0 9,800,000

Community Development Financial Institutions

Community De ve lopme nt Fina nc ia l Institutions Fund, 

Eme rge nc y S upport 0 0 3,000,000 0

Eme rge nc y Ca pita l Inve stme nt P rogra m 0 0 9,000,000 0

CO VID Program Administration & O versight

Bure a u of the Fisc a l S e rvic e (Fisc a l S e rvic e ) 0 78,650 0 23,200

IRS COVID Re sponse (Admin.) 15,000 750,700 509,000 1,861,700

De pa rtme nta l Offic e s 0 225,000 65,000 330,000

S pe c ia l Inspe c tor Ge ne ra l for P a nde mic Re c ove ry 0 25,000 0 0

Offic e of the Inspe c tor Ge ne ra l 0 35,000 6,500 5,600

Tre a sury Inspe c tor Ge ne ra l for Ta x Administra tion 0 0 0 8,000

$706,000 $1,059,961,350 ($277,940,257) $847,843,900 

Treasury COVID-19 Budget Authority Overview1

2Mandatory funding; Amounts will change as funds are needed and obligated; Assistance to Taxpayers also includes some support for 

businesses; Under the Assistance to Taxpayers category, the ARP also expanded the Child Tax Credit and created advance payments; 

established a child and dependent care tax credits; and made changes to the Earned Income Tax Credits.

5The Budget proposes to repurpose $25M of Economic Stabilization Program funds for Special Inspector General for Pandemic 

Recovery; Section 1003 of the CAA, 2021, rescinded unobligated balances from the CARES Act 2020 appropriation to the Economic 

Stabilization Program; the ultimate effect of Sec. 1003 rescinded $478,796,257,000 from this program.

4This estimate only included the advance portions of the credits; other impacts of the credits are reflected in the FY 2022 Budget 

receipt estimates.

1Budget authority is based on enacted legislation; subsequent legislation extending existing authority increases the initial legislative 

authority. The table displays both mandatory and discretionary funding.

3Economic Impact Payments excludes Recovery Rebate Credits; FY 2021 Budget Authority $27,669 million of which $24,902 million 

is estimated to be obligated in FY 2021 and $2,767 million is estimated to be obligated in FY 2022.
COVID - 3

The implementation of the recovery programs disbursed through the tax code, including 

Economic Impact Payments, the enhanced Child Tax Credit (CTC), and the CTC advance 

payments, will continue to be led by the Office of Tax Policy, the Internal Revenue Service, and 

the Bureau of Fiscal Service, in coordination with the Office of Recovery Programs.
COVID - 4

Section II – Program Summary 

A – Assistance for Taxpayers

The Treasury Department, the Bureau of the Fiscal Service (Fiscal Service), and the Internal 

Revenue Service (IRS) have provided three rounds of fast and direct relief payments during the 

COVID-19 crisis. Payments from the third round continue to be disbursed rapidly to Americans 

across the country.

1.1 Economic Impact Payments

These payments, which provide relief to the American people, including those residing in the 

U.S. territories, include the 2020 and 2021 recovery rebate credits, including the advance 

Economic Impact Payments of those credits, enacted in Section 2201 of the CARES Act, Section 

272 of the CAA, 2021, and Section 9601(a) of the ARP.

Economic Impact Payments1

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 276,592,000 274,654,000 0 1,913,000 25,000 

CAA, 2021 0 0 145,222,000 145,207,000 15,000 

ARP 0 0 374,015,000 373,602,000 413,000 

Total $276,592,000 $274,654,000 $519,237,000 $520,722,000 $453,000 

Total Full-time Equivalents (FTE) 0 0 0 0 0

1Excludes Recovery Rebate Credits; FY 2021 Budget Authority $27,669 million of which $24,902 million is estimated to be obligated in FY 

2021 and $2,767 million is estimated to be obligated in FY 2022.

1.2 Employer Refundable Credits

Employee Retention Credit (ERC); Section 2301 of the CARES Act created the employee 

retention credit, a refundable tax credit against certain employment taxes equal to 50 percent of 

the qualified wages certain businesses and tax-exempt employers pay to employees (up to 

$10,000 per employee) after March 12, 2020, and before January 1, 2021. Eligible employers 

could get immediate access to the credit by reducing employment tax deposits they are otherwise 

required to make or requesting an advance of the credit. 

Section 206 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted as Division 

EE of the CAA, 2021 amended and made technical changes to section 2301 of the CARES Act 

retroactive to the original effective date of section 2301, in particular to permit an employer that 

received a Paycheck Protection Program (PPP) loan to be eligible to claim an employee retention 

credit under section 2301 of the CARES Act, provided the wages reported in support of the 

forgiveness of the PPP loan are not the same wages for which the credit is claimed. 

Section 207 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 extended the 

employee retention credit to qualified wages paid after December 31, 2020 and before July 1, 
COVID - 5

2021; increased the maximum credit amount that may be claimed per employee (making it equal 

to 70 percent of $10,000 of qualified wages paid to an employee per calendar quarter); limited

eligibility for and amount of the credit advance, and expanded the category of employers that 

may be entitled to claim the credit, among other technical amendments. 

Section 9651 of the ARP extended the availability of the employee retention credit to wages paid 

after June 30, 2021, and before January 1, 2022. Section 3134 generally maintained the structure 

of the employee retention credit as provided under section 2301 of the CARES Act, as amended, 

with certain changes. 

Employers in a U.S. Territory that otherwise qualify for the employee retention credit can claim 

the credit. Payments of wages by employers in U.S. Territories are wages within the meaning of 

section 3121(a) and therefore employers eligible to claim the credit include employers in the 

U.S. Territories that pay qualified wages and otherwise meet the requirements for the credit. 

Paid Leave Credits.

Sections 7001 and 7003 of Division G of the FFCRA created refundable tax credits against 

certain employment taxes for small and midsize employers to reimburse them for the cost of 

providing required paid sick and family leave wages to their employees for leave related to 

COVID-19 as set forth under Division E, the Emergency Paid Sick Leave Act (EPSLA) and 

Division C, the Emergency Family and Medical Leave Expansion Act (Expanded FMLA) of the 

FFCRA. Sections 7002 and 7004 of the FFCRA created similar credits for certain self-employed 

persons in similar COVID-related circumstances. An employer is eligible for credits for qualified 

sick leave wages up to $511 per day and $5,110 in the aggregate (for up to 10 days of leave) and 

up to $200 per day and $10,000 in the aggregate (for up to 10 weeks of leave) for qualifying 

COVID-related leave reasons. Eligible employers could get immediate access to the credit by 

reducing employment tax deposits they are otherwise required to make or requesting an advance 

of the credit. The requirement to provide leave under the EPSLA and Expanded FMLA expired 

on December 31, 2020, but the credits for paid leave that otherwise would have satisfied the 

requirements under the EPSLA and Expanded FMLA were extended through subsequent 

legislation through September 30, 2021. 

Sections 286, 287 and 288 of the COVID-related Tax Relief Act of 2020, enacted under Division 

N of the CAA, 2021 extended the credits for periods of leave from January 1, 2021, through 

March 31, 2021, and made certain technical improvements to the FFCRA credit provisions.

Section 9641 of the ARP extended the credits through the period from April 1, 2021 through 

September 30, 2021; expanded the category of employers eligible for the credit, reset the 

limitations on the amount of qualified wages that may be taken into account for purposes of the 

credits (and increase the aggregate cap for paid family leave wages from $10,000 to $12,000); 

expanded the category of qualifying reasons for paid leave wages eligible for the credits 

(including leave to receive and recover from a COVID-19 vaccine), and made other technical 

amendments. (Sections 9642 and 9643 of the ARPA amended and extended the equivalent tax 

credits for certain self-employed individuals for April 1, 2021, through September 30, 2021.)

Employers in a U.S. Territory that otherwise qualify for the paid leave credits can claim the 
COVID - 6

credit. Payments of wages by employers in U.S. Territories are wages within the meaning of 

section 3121(a) and therefore employers eligible to claim the credit include employers in the 

U.S. Territories that pay qualified wages and otherwise meet the requirements for the credit.

Section 9501 of the ARP required certain employers to offer free Consolidated Omnibus Budget 

Reconciliation Act (COBRA) coverage to certain qualified individuals for periods of coverage 

from April 1, 2021 through September 30, 2021. The ARP provided tax credits to employers to 

offset the cost of the COBRA coverage. It subsidized 100 percent of COBRA premiums for six 

months for individuals who lost employment or had reduced hours.

1.3 Child and Dependent Care Tax Credits, Advance Payments of Child Tax Credit, Child Tax 

Credit, and Earned Income Tax Credit Changes

Section 9631(a) of the ARP amended Section 21 of the Internal Revenue Code (Code) to provide 

special rules for the Child and Dependent Care Tax Credit (CDCTC) solely for Tax Year 2021. 

Specifically, the ARP made the CDCTC fully refundable. In addition, the maximum credit rate 

of the CDCTC increased from 35 percent to 50 percent. The amount of expenses that are eligible 

for the CDCTC was increased from $3,000 to $8,000 for one qualifying dependent (from $6,000 

to $16,000 for two or more qualifying dependents). The ARP increased the phase-out threshold 

of the CDCTC from $15,000 of AGI to $125,000. The credit rate is phased down, but not below 

20 percent, by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayers 

adjusted gross income (AGI) exceeds this threshold. The ARP further phased down the credit 

rate of 20 percent by 1 percentage point for each $2,000 (or fraction thereof) by which the 

taxpayers AGI exceeds $400,000. Section 9631(b) of the ARP amended Section 21 of the Code 

to authorize payments to U.S. territories with mirror code tax systems and to U.S. territories with 

non-mirror code tax systems. 

Section 9632(a) of the ARP amended Section 129(a)(2) of the Code to increase, for Tax Year 

2021 only, the maximum amount of employer-provided dependent care assistance that may be 

excluded from gross income. This increase doubles the generally applicable amounts that is, 

$5,000 (or $2,500 in the case of a married individual filing a separate return) such that an eligible 

employee for Tax Year 2021 can receive an exclusion of $10,500 (or $5,250 in the case of a 

married individual filing a separate return).

The Budget proposes to extend permanently the changes to the Child and Dependent Care Tax 

Credit made by the ARP, including the refundability of the credit and increases in the maximum

credit rate and maximum amount of allowable expenses. Under the proposal, eligible taxpayers 

may claim a refundable credit for up to 50 percent of up to $8,000 in eligible expenses for one 

child or disabled dependent and up to $16,000 in eligible expenses for more than one child 

and/or disabled dependent. The credit rate is reduced for taxpayers with incomes above 

$125,000.

In Sections 9611 and 9612 of the American Rescue Plan Act of 2021, P.L. No. 117-2, 135 Stat. 4 

(Mar. 11, 2021) (American Rescue Plan) amended the Internal Revenue Code (Code) to modify 

the CTC for 2021 only. Section 9611 of the American Rescue Plan amended Section 24 of the 

Code to make the entire amount of the CTC refundable and extended the CTC to cover children 

17 years old and younger. The legislation also increased the amount of the CTC from $2,000 to 
COVID - 7

$3,600 for children under age 6, and $3,000 for other children under age 18. The amount of this 

increase in the CTC that is, the $1,600 in the case of a qualifying child under age 6 and $1,000 in 

the case of another qualifying children under age 18 is reduced by $50 for each $1,000 (or 

fraction thereof) by which the taxpayers modified adjusted gross income (MAGI) exceeds certain 

thresholds. These thresholds are (i) $150,000 for joint filers and surviving spouses, (ii) $112,500 

for heads of household, and (iii) $75,000 in all other cases. In addition, the American Rescue 

Plan amended the Code to require advance payments of the CTC to be made periodically 

throughout 2021, beginning after July 1, based on the taxpayers 2020 or 2019 tax returns, in an 

aggregate amount equal to 50 percent of the amount of the taxpayers refundable CTC. Section 

9612 of the American Rescue Plan amended Section 24 of the Code to provide that bona fide 

residents of the U.S. territories also are eligible for the expanded refundable CTC for 2021. 

The Budget proposes to extend permanently the full refundability of the Child Tax Credit made 

by the American Rescue Plan of 2021. In addition, the proposal would extend through 2025, 

other changes made by the American Rescue Plan, including: increasing to 17 the maximum age 

an individual may be claimed as a qualifying child; increasing the maximum credit amount to 

$3,600 for each qualifying children under age 6 and to the $3,000 for each other qualifying 

children under age 18; and allowing half of the credit to be paid in advance.

Section 211 of the Consolidated Appropriations Act, 2021 (P.L. 116-260) and Sections Added 

CTC language and proposal from MAX.9621 through 9626 of the American Rescue Plan Act of 

2021, Pub. Law No. 117-2, 135 Stat. 4 (Mar. 11, 2021) (American Rescue Plan) modified the 

EITC. For Tax Year 2021 only, the American Rescue Plan, generally, (i) reduced from 25 to 19 

the minimum age to claim the EITC with no qualifying children (Childless EITC); (ii) eliminated 

the upper-age limit for the Childless EITC; (iii) increased the credit and phaseout percentages for 

the Childless EITC; and (iv) allowed individuals to use their earned income from Tax Year 2019

instead of their earned income from Tax Year 2021, if earned income from Tax Year 2021 is 

less, for purposes of calculating the EITC for Tax Year 2021. The American Rescue Plan also 

permanently modified the rules, beginning in 2021, regarding (i) children who fail to meet 

certain identification requirements, (ii) separated spouses, (iii) the disqualified investment 

income test, and (iv) the application of the EITC to the U.S. territories.

The Budget proposes to extend permanently the changes made by the ARP to the Earned Income 

Tax Credit for individuals with no qualifying children.

B – Assistance to American Industry & Small Businesses

The COVID-19 public health crisis and resulting economic crisis have put many sectors of the 

American economy under unprecedented strain. The Treasury Department is offering financial 

support to American industry so they can better support American workers and play a pivotal 

part in driving the national recovery effort.

The pandemic has also created a variety of challenges for small, micro, and solo businesses in 

communities across the country. Treasury is also providing critical assistance to small businesses 

across the country, facilitating the urgent deployment of capital and support to help these 

organizations not just persevere, but recover on solid footing.
COVID - 8

1.1 Transportation Services

The CAA, 2021 Section 421 authorized the Secretary of the Treasury, in consultation with the 

Secretary of Transportation, to make grants available to eligible providers of transportation 

services that were negatively impacted by the coronavirus pandemic. This includes, but is not 

limited to, eligible companies providing charter, local, commuter, school, and tour bus services 

and eligible small passenger vessels (as defined in 46 U.S.C 85, 116, and 2101).

Transportation Services

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority1

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 0 0 0 0 0 

CAA, 2021 0 0 1,950,000 1,950,000 0 

ARP 0 0 0 0 0 

Total $0 $0 $1,950,000 $1,950,000 $0 

Total Full-time Equivalents (FTE) 0 0 20 20 20

1Funds available until expended, no more than $50M for administrative expenses.

1.2 Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation 

Workers

The CARES Act, Section 4112, CAA, 2021 Division N Section 402, and the ARP, Section 7301 

each authorized the Secretary of the Treasury to provide financial assistance to the aviation 

industry for the continued payment of employee wages, salaries, and benefits. The CARES Act 

provided for financial assistance to passenger air carriers, cargo air carriers, and airline 

contractors. The two subsequent laws provided for additional financial assistance only for 

passenger air carriers and airline contractors.

Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation 

Workers

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 31,900,000 28,199,000 0 3,793,000 0 

CAA, 2021 0 0 16,000,000 16,000,000 0 

ARP1 0 0 14,990,000 11,736,000 7,000 

Total $31,900,000 $28,199,000 $30,990,000 $31,529,000 $7,000 

Total Full-time Equivalents (FTE) 8 8 14 14 17

1Funds available until expended
COVID - 9

1.3 Economic Stabilization Program

The CARES Act (P.L. 116–136) authorized the Department of the Treasury to make up to $500 

billion in loans and other investments in support of and to provide liquidity to eligible 

businesses, nonprofits, states, and municipalities impacted by the COVID-19 pandemic. This 

included investments in facilities established by the Board of Governors of the Federal Reserve 

System pursuant to Section 13(3) of the Federal Reserve Act to provide liquidity to the financial 

system. The CARES Act also authorized Treasury to use up to $46 billion of these funds to make 

loans to passenger and cargo air carriers, certain other aviation businesses, and businesses critical 

to maintaining national security. As required by the Federal Credit Reform Act of 1990, as 

amended, this account records the subsidy costs associated with these loans and investments, 

which are estimated on a present value basis. The Consolidated Appropriations Act, 2021 (P.L. 

116–260) rescinded this authority, though any loans and investments already made will remain 

active until obligations are fully liquidated.

Economic Stabilization Program

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority2

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act1 499,875,000 31,823,000 0 998,000 0 

CAA, 2021 0 0 (478,671,257) 0 0 

ARP 0 0 0 0 0 

Total $499,875,000 $31,823,000 ($478,671,257) $998,000 $0 

Total Full-time Equivalents (FTE) 11 11 12 12 9

1

$25M transferred to SIGPR, $100M for administrative expenses available until expended.

2Prior year obligations were recovered before the January 9, 2021 recission deadline

C – Assistance for State, Local, & Tribal Governments

The COVID-19 public health crisis and resulting economic crisis have put state, local, and Tribal 

governments under unprecedented strain. The Treasury Department is providing needed relief to 

state, local, and Tribal governments to enable them to continue to support the public health 

response and lay the foundation for a strong and equitable economic recovery.

1.1 Coronavirus Relief Fund

The CARES Act, Section 5001, as amended by the CAA, 2021 Section 1001, and the ARP, 

Section 9901, amended the Social Security Act (42 U.S.C. 301 et seq.) to authorize the Secretary 

of the Treasury to make payments to states, territories, tribal governments, and units of local 

government to assist with expenditures related to, as well as to mitigate the fiscal effects 

stemming from, the coronavirus pandemic.

In addition, the ARP established a Coronavirus Capital Projects Fund and a Local Assistance and 

Tribal Consistency Fund. The Coronavirus Capital Projects Fund provides $10 billion in

payments to states, territories, and tribal governments to carry out critical capital projects directly 

enabling work, education, and health monitoring, including remote options, in response to the 
COVID - 10

coronavirus pandemic. The Local Assistance and Tribal Consistency Fund provides $2 billion in 

payments to eligible revenue sharing counties and eligible tribal governments for any 

governmental purpose other than lobbying activity to be obligated in FYs 2022 and 2023.

Coronavirus Relief Fund

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority1

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 150,000,000 150,000,000 0 0 0 

CAA, 2021 0 0 0 0 0 

ARP 0 0 362,000,000 360,000,000 1,000,000 

Total $150,000,000 $150,000,000 $362,000,000 $360,000,000 $1,000,000 

Total Full-time Equivalents (FTE) 0 0 10 10 18

1

$2B available through 2023, $350B available through 2025 and $10.05B available until expended. $35M

1.2 Homeowner Assistance Fund

The ARP, Section 3206, established the Homeowner Assistance Fund to mitigate financial 

hardships associated with the coronavirus pandemic by providing funds to states, territories, 

tribes, and other eligible entities in order to prevent homeowner mortgage delinquencies, 

defaults, foreclosures, loss of utilities or home energy services, displacements, and postforeclosure evictions.

Homeowner Assistance Fund

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority1

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 0 0 0 0 0 

CAA, 2021 0 0 0 0 0 

ARP 0 0 9,915,400 9,915,400 0 

Total $0 $0 $9,915,400 $9,915,400 $0 

Total Full-time Equivalents (FTE) 0 0 7 7 16

1 Funds available through FY 2025; $3M transferred to CDFI

1.3 Emergency Rental Assistance

The CAA, 2021 Division N Section 501 established the Emergency Rental Assistance fund to 

provide payments to states, territories, tribes, localities, and other eligible entities to provide 

financial assistance and housing stability services to eligible households. These services may 

include the payment of rent, rental arrears, and utilities and home energy costs for a specified 

period of time. The ARP, Section 3201 provided for additional assistance and expanded housing 
COVID - 11

stability services, in addition to allocating a subset of the funds specifically for high-need 

grantees in FY 2022 and FY 2023.

Emergency Rental Assistance

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 0 0 0 0 0 

CAA, 20211 0 0 24,978,500 24,978,500 0 

ARP2 0 0 21,517,000 21,517,000 0 

Total $0 $0 $46,495,500 $46,495,500 $0 

Total Full-time Equivalents (FTE) 0 0 9 9 16

1One-year funding

2Funds available through FY 2027; $3M transferred to OIG

1.4 State Small Business Credit Initiative (SSBCI)

The ARP, Section 3301 amends the State Small Business Credit Initiative Act of 2010 (12 

U.S.C. 4701 et seq.) in order to re-establish the State Small Business Credit Initiative and 

provide funds to states and tribal governments through September 29, 2030. The overall purpose 

of this account is to provide support to small businesses responding to and recovering from the 

economic effects of the coronavirus pandemic, ensure business enterprises owned and controlled 

by socially and economically disadvantaged individuals have access to credit and investments, 

and provide technical assistance to help small businesses applying for various support programs.

State Small Business Credit Initiative (SSBCI)

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority1

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 0 0 0 0 0 

CAA, 2021 0 0 0 0 0 

ARP 0 0 9,800,000 9,800,000 0 

Total $0 $0 $9,800,000 $9,800,000 $0 

Total Full-time Equivalents (FTE) 0 0 32 32 32

1Funds available until expended.

D – Community Development 

1.1 Community Development Financial Institutions Fund, Emergency Support 

The CAA, 2021 provided $3 billion to deliver immediate assistance to CDFIs in communities 

impacted by the COVID-19 pandemic. In the spring of 2021, the CDFI Fund plans to award 
COVID - 12

$1.25 billion of these funds through its newly established CDFI Rapid Response Program (CDFI

RRP), which is designed to quickly deploy capital to CDFIs through a streamlined application 

and review process. Through the CDFI RRP, CDFIs will be provided with resources necessary to 

respond to the economic impacts of the COVID-19 pandemic in distressed and underserved 

communities and people. 

To further assist distressed and underserved communities in responding to the economic impacts 

of the COVID19 pandemic, the CDFI Fund will also begin the process of making $1.75 billion in 

funds available to support lending in minority communities and minority lending institutions 

through its Minority Lending Program (MLP) in 2022. Of these funds, $1.2 billion is reserved 

for awards to minority lending institutions, which are CDFIs that are designated as Minority 

Depository Institutions (MDIs) or meet other standards for accountability to minority 

populations as determined by the CDFI Fund; and, $550 million will be awarded to CDFIs to 

expand their lending, grant making, or investment activity in low- or moderate-income minority 

communities and to minorities that have significant unmet capital or financial service needs.

CDFI Emergency Support

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority1

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 0 0 0 0 0 

CAA, 2021 0 0 3,000,000 1,250,000 1,741,000 

ARP 0 0 0 0 0 

Total $0 $0 $3,000,000 $1,250,000 $1,741,000 

Total Full-time Equivalents (FTE) 0 0 7 7 14

1

$1.75B Funds available until expended

1.2 Emergency Capital Investment Program

The CAA, 2021 Division N Section 522 amended the Community Development Banking and 

Financial Institutions Act of 1994 (12 U.S.C. 4701 et seq.) to establish the Emergency Capital 

Investment Fund and authorized the Emergency Capital Investment Program. This program 

supports the efforts of low- and moderate-income community financial institutions to, among 

other things, provide loans, grants, and forbearance for small businesses, minority-owned 

businesses, and consumers, especially in low-income and underserved communities, including 

persistent poverty counties, that may be disproportionately impacted by the coronavirus 

pandemic by providing direct and indirect capital investments.
COVID - 13

Emergency Capital Investment Program

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority1

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 0 0 0 0 0 

CAA, 2021 0 0 9,000,000 8,796,000 20,000 

ARP 0 0 0 0 0 

Total $0 $0 $9,000,000 $8,796,000 $20,000 

Total Full-time Equivalents (FTE) 0 0 12 12 14

1Funds available until expended.

E – COVID Program Administration and Oversight

1.1 Bureau of the Fiscal Service (Fiscal Service)

The CARES Act provided the Fiscal Service $78.65 million in supplemental appropriations for 

the implementation of the Economic Impact Payments (EIP) as well as the implementation of 

reporting requirements associated with spending of COVID-19 supplemental appropriations. In 

the first round of EIPs, Fiscal Service issued more than 160 million EIPs totaling more than 

$270 billion. The CAA, 2021 authorized a second round of EIPs and allowed for the transfer up 

to $63 million of the $78.65 million appropriated under CARES to offset any losses attributable 

to debt collection activities. 

During FY 2021, Fiscal Service issued more than 147 million EIP2s and as of May 12, 2021, has 

issued approximately 165 million EIP3s. In total, as of May 2021, over 472 million EIPs have 

been disbursed during FY 2020 and FY 2021. The ARP provided Fiscal Service $23.2 million 

for implementation of Recovery Rebates to Individuals and Child Tax Credit Advanced 

Payments. In addition to the funds appropriated by the CARES Act, the CAA, 2021, and the 

ARP, the IRS reimburses Fiscal Service for the cost of postage (see 31 U.S.C. 306 note) 

associated with EIPs.
COVID - 14

Bureau of the Fiscal Service

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority1

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act2 78,650 12,538 0 17,500 0 

CAA, 2021 0 0 0 0 0 

ARP 0 0 23,200 19,100 4,100 

Total3$78,650 $12,538 $23,200 $36,600 $4,100 

Total Full-time Equivalents (FTE) 0 0 0 0 0

1 CARES funding is available until September 30, 2021. ARP funding is available until September 30, 2022.

2 The CAA, 2021, authorized the transfer of up to $63M to offset the losses resulting from the suspension of debt collection receipts during the 

coronavirus pandemic. Fiscal Service estimates that $48.5M will be transferred to the Debt Collection Fund. 

3 Total excludes reimbursed postage cost from the IRS (31 U.S.C. 306); In FY 2020, IRS reimbursed Fiscal Service $16.9 million for postage 

cost and in FY 2021, Fiscal Service estimates the postage cost to total $20M. 

1.2 IRS COVID Response (Admin.)

The IRS received $15 million in the FFCRA and $750.7 million in the CARES Act for the 

resources for the IRS to change its operations to operate during the pandemic and implement

EIPs and other tax changes. The IRS received an additional $509 million in the CAA, 2021 to 

carry out a second round of EIPs and address COVID-related tax administration issues. Finally, 

the IRS received $1.465 billion in the ARP for a third round of EIPs and information technology

modernization as well as $397.2 million to carry out advance payments for the CTC. 

IRS COVID Response (Admin.)1

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 15,000 14,988 0 0 0 

CARES Act2 750,700 423,516 0 327,184 0 

CAA, 20212 0 0 509,000 509,000 0 

ARP3 0 0 1,861,700 898,000 564,000 

Total $765,700 $438,504 $2,370,700 $1,734,184 $564,000 

Total Full-time Equivalents (FTE) 0 0 0 0 0

1

Includes funds for Taxpayer Services, Enforcement, Operations Support and Systems Modernization with multiple periods of availability.

2Obligations are based on estimates as of the time of the FY 2022 Budget; assumes funding will be fully obligated by the end of FY 2021.

1.3 Departmental Offices

This account received additional appropriations in the CARES Act to support the Small Business 

Administration Paycheck Protection Program. Additionally, the Treasury Departmental Offices 

provide administrative support to the following programs: Economic Impact Payments; 
COVID - 15

Economic Stabilization Program Payroll Support Program; Air Carrier Worker Support & 

Pandemic Relief for Aviation Workers; Transportation Services; Coronavirus Relief Fund; 

Homeowner Assistance Fund; Emergency Rental Assistance and State Small Business Credit 

Initiative

Departmental Offices

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act2 225,000 24,000 0 26,000 30,000 

CAA, 20213 0 0 65,000 40,000 25,000 

ARP 0 0 330,000 68,000 61,000 

Total5$225,000 $24,000 $395,000 $134,000 $116,000 

Total Full-time Equivalents (FTE) 0 0 32 32 32

1Funds available through FY 2021.

2

$100M for Economic Stabilization Program and Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation 

Workers, fund available until expended available until expended.

3

$50M for Transportation Services, available through FY 2022; $15M for Emergency Rental Assistance, available through end of FY 2021.

4

$10M for administrative expenses related to Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation Workers, 

available until expended; $50M for administrative expenses related to Coronavirus Relief Fund, available until expended; $40M for 

administrative expenses related to Homeowner Assistance Fund, available until expended; $30M for administrative expenses related to 

Emergency Rental Assistance, available through FY 2025; $200M for administrative expenses related to State Small Business Credit 

Initiative, available until expended. 

5Administrative support for Economic Impact Payments are excluded from this table.

1.4 Special Inspector General for Pandemic Recovery

The Special Inspector General for Pandemic Recovery (SIGPR) was established by Section 4018 

of the CARES Act. 

SIGPR has the duty to conduct, supervise, and coordinate audits, evaluations, and investigations 

of the making, purchase, management, and sale of loans, loan guarantees, and other investments 

made by the Secretary of the Treasury under programs established by the Secretary, as 

authorized by Section 4018(c) of the CARES Act, and the management by the Secretary of 

programs, as authorized by Section 4018(c) of the CARES Act.

By express incorporation, SIGPR also has the duties, responsibilities, powers, and authorities 

granted inspectors general under the Inspector General Act of 1978, including broad subpoena 

authority. 

The role and mission of SIGPR is to safeguard the peoples' tax dollars appropriated by Congress 

through the CARES Act. SIGPR strives to ensure that the American taxpayer gets the best return 

on investment by efficiently rooting out fraud, waste, and abuse. In carrying out its mission, 

SIGPR’s goal is to treat everyone with respect, to operate with the utmost integrity, and to be 

fair, objective, and independent. 
COVID - 16

SIGPR received an initial appropriation of $25 million derived from amounts made available 

under Section 4027 of the CARES Act. The Budget proposes appropriations language to provide 

SIGPR an additional $25 million in 2022 from unobligated balances that remain available under 

Section 4027. This funding is critical in ensuring that SIGPR's audit and investigative services 

have the necessary resources to protect the integrity of CARES Act funds. 

Special Inspector General for Pandemic Recovery

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority

Estimated

Obligations

Estimated

Obligations2

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 25,000 1,000 0 18,000 25,000 

CAA, 2021 0 0 0 0 0 

ARP 0 0 0 0 0 

Total $25,000 $1,000 $0 $18,000 $25,000 

Total Full-time Equivalents (FTE) 2 1 66 66 76

1Funds shall remain available until expended

2Anticipating $25M increase from transfer in FY 2022

1.5 Office of the Inspector General

This account also supports the oversight of COVID response programs, such as the Coronavirus 

Relief Fund, Emergency Rental Assistance, and the Homeowner Assistance Fund pursuant to the 

CARES Act, Division N of the CAA, 2021, and the ARP.

Office of the Inspector General

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act1 35,000 2,000 0 11,000 7,000 

CAA, 20212 0 0 6,500 1,000 400 

ARP3 0 0 5,600 3,000 2,600 

Total $35,000 $2,000 $12,100 $15,000 $10,000 

Total Full-time Equivalents (FTE) 0 0 0 0 0

1Funds shall remain available until expended; 

2ERA funds available until expended

3HAF is 21/25 Funding and ERA is 21/27 Funding 

1.6 Treasury Inspector General for Tax Administration

This account also supports the oversight of EIPs and other fast and direct relief pursuant to the 

CARES Act, Division N of the CAA, 2021, and the ARP.
COVID - 17

Treasury Inspector General for Tax Administration

Dollars in Thousands

FY 2020 FY 2020 FY 2021 FY 2021 FY 2022

Enacted 

Budget 

Authority

Obligations Enacted 

Budget 

Authority1

Estimated

Obligations

Estimated

Obligations

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Statute

FFCRA 0 0 0 0 0 

CARES Act 0 0 0 0 0 

CAA, 2021 0 0 0 0 0 

ARP 0 0 8,000 3,000 5,000 

Total $0 $0 $8,000 $3,000 $5,000 

Total Full-time Equivalents (FTE) 0 0 0 0 0

1Funds to remain available until September 30, 2023
COVID - 18

Section III –Appropriations Language

A – Treasury Administrative Provisions 

1.1 Special Inspector General for Pandemic Recovery

Sec. 124 intends to ensure sufficient resources so that the critical work that SIGPR does on 

behalf of the American public continues. SIGPR’s resources originally provided by the CARES 

Act are at risk of running out during FY 2022, well before the work of the SIGPR would need to 

end. 

Of the amounts appropriated in section 4027(a) of the Coronavirus Aid, Relief, and Economic 

Security Act (15 U.S.C. 9061) that are available for obligation as a result of the deobligation of 

amounts that were, as of January 9, 2021, obligated for the credit subsidy cost of loans and loan 

guarantees that the Secretary of the Treasury had committed under paragraphs (1) through (3) 

of section 4003(b) of the Coronavirus Aid, Relief, and Economic Security Act (15 U.S.C. 

9042(b)(1)-(3)), $25,000,000 shall be available to the Special Inspector General for Pandemic 

Recovery to carry out section 4018 of the Coronavirus Aid, Relief, and Economic Security Act 

(15 U.S.C. 9053): Provided, that such amounts shall be in addition to any other amounts 

available for such purpose.

1.2 Administrative Funding Transfer Authority

Sec. 125 enables the Secretary of the Treasury to ensure resources are effectively and efficiently 

utilized for a centralized and consistent approach to administering and managing the various 

coronavirus recovery and stabilization programs implemented by Treasury.

Notwithstanding any other provision of law, the unobligated balances from amounts made 

available to the Secretary of the Treasury for administrative expenses pursuant to sections 

4003(f) and 4112(b) of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-

136); section 421(f)(2) of Division N of the Consolidated Appropriations Act, 2021 (Public Law 

116-260); sections 3201(a)(2)(B), 3206(d)(1)(A), and 7301(b)(5) of the American Rescue Plan 

Act of 2021 (Public Law 117-2); and section 602(a)(2) of the Social Security Act, as added by 

section 9901 of the American Rescue Plan Act of 2021 (Public Law 117-2), shall be available for 

any administrative expenses determined by the Secretary of the Treasury to be necessary to 

respond to the coronavirus, including but not limited to expenses necessary to implement any 

provision of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), 

Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260), the American 

Rescue Plan Act (Public Law 117-2), or title VI of the Social Security Act: Provided, That such 

unobligated balances shall be available in addition to any other appropriations provided for 

such purposes.


Department of the Treasury 

Office of Inspector General 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
OIG - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2 – Budget Adjustments Table ................................................................................................. 5

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 6

D – Appropriations Language and Explanation of Changes ...................................................... 7

E – Legislative Proposals ............................................................................................................ 7

Section II – Annual Performance Plan and Report ................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity .................................................................... 14

2.1.1 – Audit Resources and Measures ..................................................................................... 14

Audit Budget and Performance ................................................................................................. 14

2.1.2 – Investigations Resources and Measures ........................................................................ 15

Investigations Budget and Performance ................................................................................... 15

C – Changes in Performance Measures .................................................................................... 16

D –Evidence Building Activity ................................................................................................. 16

Section III – Additional Information ........................................................................................ 17

A – Summary of Capital Investments ....................................................................................... 17

 
OIG - 3 

Section I – Budget Request 

A – Mission Statement 

To promote the integrity, efficiency, and effectiveness in programs and operations within the 

Department of the Treasury and OIG’s jurisdictional boundaries. 

B – Summary of the Request 

The FY 2022 request for $42,362,000 for the OIG will be used to fund audit, investigative, and 

mission support activities to meet the requirements of the Inspector General Act of 1978, as 

amended, and other statutes including, but not limited to: the Cybersecurity Act of 2015; DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank); Federal Information 

Security Modernization Act of 2014 (FISMA); Federal Information Technology Acquisition 

Reform Act; Government Management Reform Act; Payment Integrity Information Act of 2019 

(PIIA; Government Charge Card Abuse Prevention Act of 2012; Federal Deposit Insurance Act; 

Small Business Jobs Act of 2010; Resources and Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE); the 

Coronavirus Aid, Relief, and Economic Security Act (CARES Act); the Consolidated 

Appropriations Act, 2021; and the American Rescue Plan Act (ARP). Specific mandates include: 

(1) audits of the Department’s financial statements (2) audits or evaluations of the Department’s 

information systems security program and practices as required by FISMA, (3) assessments of 

the Department’s cybersecurity information sharing, (4) audits of improper payments and 

recoveries under PIIA, (5) risk assessments and audits of charge card programs, and (6) material 

loss reviews of failed insured depositary institutions regulated by the Office of the Comptroller 

of the Currency (OCC). 

 

The OIG will also conduct audits of the Department’s highest risk programs and operations, and 

respond to stakeholder requests for specific work, including: (1) operating in an uncertain 

environment, (2) cyber threats, (3) Bank Secrecy Act, anti-money laundering, and anti-terrorist 

financing enforcement, (4) efforts to promote spending transparency and to prevent and detect 

improper payments, (5) information technology acquisition and project management; and (6) 

certain Treasury Pandemic Relief programs. 

Within its jurisdictional boundaries, the OIG also conducts audit of the highest risk programs and 

operations of Gulf Coast Ecosystem Restoration Council (Council) established under RESTORE. 

The highest risk programs and operations identified as the Council’s management and performance 

challenge include: (1) Federal statutory and regulatory compliance, (2) grant and interagency 

agreement compliance monitoring, and (3) Loss of Key Leadership Over Administration of Gulf 

Coast Restoration Activities. 

The OIG will continue its investigative work to prevent, detect, and investigate complaints of 

fraud, waste, and abuse impacting Treasury programs and operations. This includes the detection 

and prevention or deterrence of employee misconduct and fraud. 

 
OIG - 4 

Office of Inspector General’s FY 2022 Budget Request 

In accordance with the requirements of Section 6(f) (1) of the Inspector General Act of 1978, as 

amended, the Treasury Inspector General submits the following information relating to the 

OIG’s requested budget for FY 2022: 

 The aggregate budget request for the operations of the OIG is $52,362,000 comprised of 

$42,362,000 from direct appropriations, and $10,000,000 from reimbursable collections; 

 The portion of this amount needed for OIG training is $650,000; and 

 The portion of this amount estimated in support the Council of Inspectors General on 

Integrity and Efficiency (CIGIE) is $92,500. 

The amount requested for training satisfies all OIG training needs for FY 2022. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audit 128 $30,524 136 $30,524 144 $31,182 5.9% 2.2% 

Investigations 39 $10,520 44 $10,520 46 $11,180 4.5% 6.3% 

Subtotal New Appropriated Resources 167 $41,044 180 $41,044 190 $42,362 5.6% 3.2% 

Other Resources 

Reimbursable 0 $6,000 0 $9,000 0 $9,000 NA 0.0% 

Subtotal Other Resources 0 $6,000 0 $9,000 0 $9,000 NA 0.0% 

Total Budgetary Resources 167 47,044 180 $50,044 190 $51,362 5.6% 2.6% 

FY 2020 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

In FY 2021 additional appropriated resources were provided by the Consolidated Appropriations Act of 2021 (CAA) and the American Rescue 

Plan Act of 2021 (ARP) which are not included above: 

1. $3 Million for oversight of the Emergency Rental Assistance program (ARP). 

2. $6.5 million for oversight of the Emergency Rental Assistance program (CAA). 

3. $2.6 million for oversight of the Homeowner Assistance Fund (ARP). 

4. $35 million for oversight of the programs authorized in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
OIG - 5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

FTE Amount 

FY 2021 Operating Plan 180 $41,044 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 1,258 

Pay Annualization (1.0% average pay raise) 0 75 

Pay Raise (2.7% average pay raise) 0 677 

FERS Contribution Increase 0 284 

Non-Pay 0 222 

FY 2022 Current Services 180 $42,302 

Program Changes: 

Program Decreases 0 (1,709) 

 Reduction in Contracts and Absorption of Rent Increase 0 (1,709) 

Program Increases: 10 1,769 

Workforce FTE Adjustment 10 1,709 

Electric Vehicles and Associated Infrastructure 0 60 

Subtotal Program Changes 10 $60 

FY 2022 President's Budget Request 190 $42,362 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) .......................................................+$1,258,000 / +0 FTE 

Pay Annualization (1.0%) +$75,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$677,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$284,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$222,000 / +0 FTE 

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

and equipment. 

Program Decreases................................................................-$1,709,000 / -0 FTE 

Reduction in Contracts and Absorption of Rent Increase -$1,709,000 /-0 FTE 

Program decrease in contracts and to accommodate increased administrative costs, including 

rent. 

Program Increases ...................................................................................+$1,769,000 / +10 FTE 

Workforce FTE Adjustment +$1,709,000 / +10 FTE 

This adjustment is required to right-size the workforce for increased audit and investigative 

oversight and to provide necessary support staff. 
OIG - 6 

Electric Vehicles and Associated Infrastructure +$60,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home 

and Abroad”, the U.S. Department of the Treasury (Treasury or Department) joins in the 

Administration’s priority to develop a comprehensive plan to create good jobs and stimulate 

clean energy industries by revitalizing the Federal Government’s sustainability efforts. This 

includes Treasury’s commitment to use all available procurement authorities to augment its 

Departmentwide fleet management program with a continued focus on the leasing of electric 

vehicles (EV) and purchasing, installing, and maintaining essential infrastructure. The planned 

resources will help Treasury comply with the requirements set forth by E.O. 14008 and reduce 

the carbon footprint of emissions into the atmosphere by acquiring an updated fleet of zeroemissions vehicles that can support mission operations. 

For FY 2022, the OIG requests $60,000 to fund the eventual conversion of its fleet to EV. 

Of that money, a to-be-determined amount will be allocated to support the purchase, installation, 

maintenance, and/or upgrade of infrastructure required to maintain an EV fleet management 

program. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 22,000 20,905 22,762 

11.3 - Other than full-time permanent 10 10 10 

11.5 - Other personnel compensation 400 900 900 

11.9 - Personnel Compensation (Total) 22,410 21,815 23,672 

12.0 - Personnel benefits 8,000 8,095 7,575 

13.0 - Benefits for former personnel 15 15 15 

Total Personnel and Compensation Benefits $30,425 $29,925 $31,262 

21.0 - Travel and transportation of persons 700 700 631 

23.1 - Rental payments to GSA 4,126 4,306 4,306 

23.3 - Communications, utilities, and miscellaneous charges 900 900 900 

24.0 - Printing and reproduction 10 10 10 

25.2 - Other services from non-Federal sources 2,100 2,300 2,300 

25.3 - Other goods and services from Federal sources 2,200 2,300 2,300 

25.6 - Medical care 75 75 75 

25.7 - Operation and maintenance of equipment 58 58 58 

26.0 - Supplies and materials 200 200 250 

31.0 – Equipment 250 250 250 

91.0 - Unvouchered 0 20 20 

Total Non-Personnel $10,619 $11,119 $11,100 

Total Obligations $41,044 $41,044 $42,362 

 

Full-time Equivalents (FTE) 167 180 190 

Amounts reflect updated obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

FY 2020 actual obligations are updated from MAX schedule O entry. 

In FY 2021 additional appropriated resources were provided by CAA and ARP which are not included above: 

1. $3 Million for oversight of the Emergency Rental Assistance program (ARP). 

2. $6.5 million for oversight of the Emergency Rental Assistance program (CAA). 

3. $2.6 million for oversight of the Homeowner Assistance Fund (ARP). 

4. $35 million for oversight of the programs authorized in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). 
OIG - 7 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

OFFICE OF INSPECTOR GENERAL 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Office of Inspector General in 

carrying out the provisions of the Inspector General Act of 

1978, [$41,044,000]$42,362,000, including hire of passenger 

motor vehicles; of which not to exceed $100,000 shall be 

available for unforeseen emergencies of a confidential nature, 

to be allocated and expended under the direction of the 

Inspector General of the Treasury; of which up to $2,800,000 to 

remain available until September 30, [2022]2023, shall be for 

audits and investigations conducted pursuant to section 1608 of 

the Resources and Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the Gulf Coast States 

Act of 2012 (33 U.S.C. 1321 note); and of which not to exceed 

$1,000 shall be available for official reception and 

representation expenses. (Department of the Treasury 

Appropriations Act, 2021.)

E – Legislative Proposals 

The OIG has no legislative proposals. 

 
OIG - 8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Through the audit and investigative functions, the OIG supports the Department of the 

Treasury’s Strategic Plan. In accordance with the Government Performance and Results Act 

Modernization Act (GPRAMA) of 2010, Treasury is currently developing the FY 2022 – 2026 

Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. The OIG will publish a component plan that aligns 

bureau activities and priorities to the Department’s by early spring 2022. 

The FY 2022 requested resources will enable the OIG to perform audits and investigations of 

Treasury programs and operations under its jurisdiction, except for those of the Internal Revenue 

Service (IRS), the Troubled Asset Relief Program (TARP), the Special Inspector General for 

Pandemic Recovery (SIGPR), and to keep the Secretary of the Treasury and Congress fully 

informed of problems, deficiencies, and the need for corrective action. By statute, the OIG also 

performs oversight of the Gulf Coast Ecosystem Restoration Council, an independent Federal 

entity. 

Major challenges and risks for Treasury: 

Operating in an Uncertain Environment

This challenge addresses the external factors and future uncertainties that affect the Department’s 

programs and operations. Among the most notable is the COVID-19 outbreak. The COVID-19 

outbreak presented unique complexities for Treasury to include, among other things, 

implementing measures for the health and safety of its workforce, as well as administering more 

than $2 trillion in financial assistance under pandemic-related legislation. Despite these 

challenges, Treasury responded with limited onsite staff and details from within Treasury, other 

Federal agencies, and outside contractors. In addition to its normal payment operations, Treasury 

leveraged existing resources and processes to facilitate the delivery of billions of dollars in 

pandemic funding. While Treasury faces unforeseen challenges working through the COVID-19 

pandemic going into fiscal year 2022, other previously reported uncertainties have yet to be 

resolved. Overall, human capital management remains a high-risk area as the lengthy security 

clearance process has hampered the recruitment of cybersecurity personnel and other mission 

critical positions dealing with programs and materials of the highest sensitivity. 

 

As another complicating factor, Treasury must operate in the repeated cycle of budget and debt 

ceiling stopgaps. While the debt ceiling has been lifted through July 31, 2021, it is only 

temporary. The OIG will assess the Department’s ability to meet new mandates and manage 

challenges and risks to its programs and operations. 

Cyber Threats 

Treasury has maintained steady progress in addressing the continual and on-going challenges 

that the Federal Government and private sector face, including the threat of ransomware and 

difficulty obtaining cybersecurity personnel. Cyber threats are a persistent concern as Treasury’s 

information systems are critical to the core functions of government and the Nation’s financial 

infrastructure. Attempted cyber-attacks against Federal agencies, including Treasury, and 
OIG - 9 

financial institutions continue to increase in frequency and severity, in addition to continuously 

evolving. There are risks that Treasury’s systems and resources already in use, including critical 

infrastructure, contain components from sources that have yet to be designated as threats. 

The Department will need to monitor developments in this area closely and plan for the 

possibility that its current supply chain may no longer be available in the near future. 

In addition to its own networks and systems, the Department must be cognizant of, and mitigate, 

the risks posed by attacks made against other agencies and Treasury contractors and 

subcontractors. Furthermore, effective public-private coordination continues to be required to 

address the cyber threat against the Nation’s critical infrastructure. In this regard, Treasury is 

looked upon to provide effective leadership to financial institutions in particular, and the 

financial sector in general, to strengthen awareness and preparedness against cyber threats. 

As an ongoing challenge, Treasury will need to balance cybersecurity demands while 

modernizing and maintaining information technology (IT) systems. This is becoming more and 

more critical, especially since the COVID-19 pandemic shifted the Federal workforce to 

primarily telework status, which increases the opportunities for cyber-attacks. Long-standing 

cyber threats pose increased risks to networks and information systems during the ongoing 

COVID-19 global health pandemic as more opportunities are available for bad actors to stage 

cyber-attacks. As the tools used to perpetrate cyber-attacks become easier to use and more 

widespread, less technological knowledge and fewer resources are needed to launch successful 

attacks of increasing sophistication. To this end, Treasury must ensure that cybersecurity is fully 

integrated in its IT investment decisions. OIG conducts audits of Treasury’s information systems 

and operations. As part of these audits, OIG conducts penetration tests of selected Treasury 

bureaus and offices to determine whether sufficient protections exist to prevent and detect 

unauthorized access to Treasury networks and systems. 

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

Identifying, disrupting, and dismantling the financial networks that support rogue regimes, 

terrorist organizations, transnational criminal organizations, and other threats to the national 

security of the United States and our allies continues to be challenging as the Office of Terrorism 

and Financial Intelligence’s (TFI) role to counter these financial networks and threats has grown 

because its economic authorities are key tools to carry out U.S. policy. Effective coordination 

and collaboration and TFI’s ability to effectively gather and analyze intelligence information 

requires a stable cadre of experienced staff. Concerns over TFI’s ability to meet mission critical 

objectives are heightened by multiple vacant key positions. The security clearance process has 

significantly impacted Treasury’s human capital management and is a systemic issue 

government-wide. Stability, experienced leadership, and coordination within TFI is imperative to 

enhance information gathering and intelligence analysis and increase efficiency. 

Data security and information sharing are challenges for the Financial Crimes Enforcement 

Network (FinCEN), which has experienced unauthorized disclosures of Bank Secrecy Act 

information. The challenge for FinCEN is to ensure the Bank Secrecy Act data remain secure to 

maintain the confidence of the financial sector while meeting the access needs of law 

enforcement, regulatory, and intelligence partners. 
OIG - 10 

Given the criticality of Treasury’s mission, its role to carry out U.S. policy, and resource 

constraints, the OIG continues to consider anti-money laundering and combating terrorist 

financing programs and operations as inherently high-risk. In addition, the COVID-19 global 

pandemic created additional challenges for TFI senior management. For example, many TFI 

employees regularly work with classified information and with international organizations 

involving travel. Protocols for social distancing and expanded telework are challenges for TFI to 

accomplish its mission. Through OIG’s ongoing audits and reviews, the OIG monitors this highrisk area closely. 

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

Given the broad implications and critical roles assigned to Treasury by the Digital Accountability 

and Transparency Act of 2014 (DATA Act), there are renewed challenges facing Treasury given 

the need to ensure transparency to the taxpayer and other stakeholders on the use of funds 

distributed under the economic relief packages enacted to address individuals and industry 

sectors impacted by the COVID-19 pandemic. DATA Act reporting is now seen as one of the 

means to ensure transparency into the use of Federal funds related to COVID-19 expenditures. 

In its April 2020 memorandum, Implementation Guidance for Supplemental Funding Provided in 

Response to the Coronavirus Disease 2019 (COVID-19) OMB requires that agencies leverage 

existing financial accountability and transparency mechanisms. In part, OMB requires (1) 

tracking of COVID-19 expenditures with usage of a Disaster Emergency Fund Code; (2) 

reporting financial assistance recipient information within two weeks of issuance, with the 

exception of loans; and (3) reporting outlay information at the financial award transaction level. 

To further enhance transparency, Treasury devoted significant resources and leveraged existing 

financial reporting systems to promote spending transparency and use of Federal financial data to 

strengthen government-wide decision-making. Treasury has also shifted from quarterly to 

monthly reporting and certification beginning with the period ending June 2020, and plans to add 

a program activity attribute beginning with the first quarter of fiscal year 2021. The speed in 

which supplemental funding was distributed created new data management needs for Treasury 

along with labor intensive ingestion of data associated with the application for, and issuance of, 

economic relief. The rapid delivery of funds within short timeframes may create opportunities 

for illicit activity by anyone attempting to misuse or abuse funds that were intended for COVID19 relief. Considering the challenges and risks associated with ensuring economic relief is 

deployed and used for intended purposes, Treasury must continue to address reporting and data 

quality issues noted in DATA Act audits and intensify efforts to reduce improper payments. 

Reliable and transparent data is critical to the Department’s ongoing implementation of 

government-wide reforms for making data accessible and useful for decision-making as 

authorized by the Foundations for Evidence-Based Policymaking Act of 2018 (Evidence Act).

The OIG will monitor the Department’s progress in this area. 

The OIG also continues to identify and analyze the risks of improper payments and reviews the 

controls and safeguards put in place by Treasury to prevent and recover such payments as set 

forth in the Payment Integrity Information Act of 2019 (PIIA).

Information Technology Acquisition and Project Management 

Government-wide implementation of the Federal Information Technology Acquisition Reform 

Act (FITARA) continues to be an ongoing challenge. FITARA expanded the involvement of 

Chief Information Officers of Federal agencies in IT decision making, including annual and 
OIG - 11 

multi-year planning, programming, budgeting, execution, reporting, management, governance, 

and oversight functions. Among FITARA-specific requirements, the areas that Treasury needs 

most improvement were enhanced transparency and risk management and improved 

cybersecurity. Since February 2015, the Government Accountability Office has included the 

management of IT acquisitions and operations on its high-risk list as cost overruns and schedule 

delays impact mission related outcomes government-wide. The OIG monitors the Department’s 

progress to fully implement FITARA requirements and management of IT projects. 

Non-IT related acquisitions also require attention to ensure timely delivery and minimize cost 

overruns for achieving cost savings. In this regard, the OIG plans audit oversight of the Bureau 

of Engraving and Printing’s large construction project of a new facility to ensure continuity of 

operations of the bureau. 

 

COVID-19 Pandemic Relief 

The COVID-19 pandemic affected the health and economic stability of communities 

nationwide. Congress passed a series of legislation to address the COVID-19 health crisis and 

the economic fallout affecting individuals, businesses, and other industry sectors. Treasury has 

been instrumental in implementing and/or supporting other Federal agencies in implementation 

of economic relief provisions of the CARES Act, the Consolidated Appropriations Act, 2021, 

and the American Rescue Plan Act (ARP). Along with administering and delivering economic 

relief, Treasury must manage the unprecedented oversight required by the aforementioned 

legislation. In the context of this overarching challenge, OIG recognizes the breadth and scope of 

Treasury’s responsibilities as it impacts programs, operations, and activities regardless of 

jurisdictional oversight boundaries. With no clear end to the COVID-19 pandemic in sight, 

Treasury must continue to navigate through this challenging time and be prepared to administer 

another fast-paced relief package in the near future, if legislated. To date, Treasury has been 

able to leverage its existing workforce and hired contractors to address the demands of the 

CARES Act workload. That said, there was reported strain associated with working remotely 

while managing normal responsibilities and additional work due to the COVID-19 pandemic. 

Going forward, Treasury may experience difficulties in balancing its new responsibilities and 

workloads while managing several ongoing challenges as described throughout this document. 

Major challenges and risks for the Gulf Coast Ecosystem Restoration Council (Council) 

Federal Statutory and Regulatory Compliance 

The Council must ensure that activities and projects funded by the Resources and Ecosystems 

Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 

2012 (RESTORE Act) meet all environmental laws and regulations at the Federal and State 

level, and must also ensure its compliance with applicable laws and regulations as a Federal 

entity. The Council is challenged to follow Federal statutory and regulatory compliance 

requirements related to the DATA Act, IPERA, and the Evidence Act. The Council still faces 

challenges in meeting these Federal statutory and regulatory compliance stemming from the need 

for a reliable grants management system among other things. With the uncertainty of a 

successful transition to a new grants management system, the Council’s ability to comply with 

new as well as existing Federal requirements may be in question. In addition, there has been a 

loss of key leaders at the Council which will make a successful transition even more challenging. 
OIG - 12 

The OIG will continue to focus audits on the Council’s continued implementation and 

compliance with key Federal mandates. 

Grant and Interagency Agreement Compliance Monitoring 

Given the increase in grants and interagency agreements, the OIG continues to emphasize the 

necessity to monitor projects and award recipients of RESTORE Act funds. This challenge is 

further impacted by the Council’s transition to a new grants management system during fiscal 

year 2020. The OIG audits will focus on the Council’s monitoring controls in place to ensure 

projects’ and recipients comply with grant and agency agreements and funds are used as 

intended. 

In the Investigations operational area, OIG has established eight priorities for FY 2021: 

Threats Against Treasury Employees and Facilities 

Investigative efforts into threats against Treasury employees and facilities are critical in ensuring 

safety for the Department. These matters require prompt attention and coordination with federal, 

state, and local authorities to protect those involved.

Criminal and Serious Employee Misconduct 

The OIG Office of Investigation’s highest priority is investigating complaints involving alleged 

criminal and other serious misconduct by Treasury employees. OIG investigates allegations of 

the general crimes enumerated in Title 18 of the U.S. Code, other federal crimes, alleged 

violations of the Ethics in Government Act, and allegations of serious misconduct prohibited by 

the Standards of Ethical Conduct for Employees of the Executive Branch. Several Treasury 

bureaus and offices have additional rules and regulations relating to ethical standards for their 

own employees, and OIG also investigates complaints of alleged violations of these rules and 

regulations. 

Fraud Involving Contracts, Grants, Guarantees, and Federal Funds 

The OIG Office of Investigations conducts investigations into allegations of fraud and other 

crimes involving Treasury contracts, grants, loan guarantees, and federal funds, including 

investigations made in accordance with Sections 1602 and 1603 of the Recovery Act. Such 

allegations often involve contractors, entities, and individuals who are providing or seeking to 

provide goods or services to the Department. The Office of Investigations receives complaints 

alleging criminal or other misconduct from employees, contractors, members of the public, and 

the Congress. 

Financial Programs and Operations Crime 

Investigations relating to Treasury financial programs and operations that involve Treasury 

bureaus issuing licenses, providing benefits, and exercising oversight of U.S. financial 

institutions; frauds involving improper Federal payments such as those involving stolen, 

counterfeit, altered or fraudulently obtained Treasury checks and ACH payments; frauds 

involving improper Federal payments such as those involving Treasury checks and the Check 

Forgery Insurance Fund; crimes involving the improperly-redirected benefits of federal 

government payees; and false claims of any kind that seek Federal payments, including federal 

income tax refunds, Social Security benefits, and Department of Veterans’ Affairs. These matters 

require prompt attention to protect the public and the integrity of the department. 
OIG - 13 

Cyber Threats against Treasury Systems and Cyber Enabled Financial Crimes Fraud 

The OIG conducts investigations into Cyber intrusions of Treasury systems, the illicit removal of 

Treasury protected information from Treasury systems and Cyber enabled criminal activity 

impacting Treasury programs and operations, such as Business Email Compromise, Personal 

Email Compromise and other schemes.

Treasury Employee and Bureau Impersonation Scams 

Investigations relating to scammers who represent themselves as Treasury employees to defraud 

the citizens of the U.S. and other countries by the impersonation of Treasury employees and/or 

the fraudulent use of the Treasury and Bureau seals. This is a problem that has significantly 

increased in the last few years. These matters require prompt attention to protect the public and 

the integrity of the Department. 

Investigating Fraud Related to Persons Representing Themselves as “Sovereign Citizens” 

Submitting Fictitious Financial Instruments to Treasury, Financial Institutions, and Private 

Companies 

The OIG conducts investigations into criminal activity associated with individuals who attempt 

to scam the Treasury, financial institutions, private companies, and citizens by submitting 

fictitious financial instruments purporting to be issued by or drawn on the Treasury or other 

counterfeit documents to perpetrate a variety of fraud schemes. These matters have become more 

prevalent and require prompt coordination with Federal, State, and local authorities to protect the 

targets of the scams. 

Identifying and Investigating Fraud Related to the Coronavirus Aid, Relief, and Economic 

Security (CARES) Act and other related special programs related to minimize economic 

consequences of the Pandemic. 

The OIG conducts inquiries and investigations of waste, fraud, and abuse related to Title V of the 

CARES Act, which established the Coronavirus Relief Fund, as well as the Emergency Rental 

Assistance program (ERA/ERA2), the Homeowner Assistance Fund (HAF) and the State Small 

Business Credit Initiative (SSBCI). 
OIG - 14 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $27,653 $26,014 $24,413 $25,699 $30,524 $30,524 $31,182 

Reimbursable $7,299 $6,726 $6,116 $6,236 $9,000 $9,000 $9,000 

Budget Activity Total $34,952 $32,740 $30,529 $31,935 $39,524 $39,524 $41,182 

Full-time Equivalents (FTE) 137 137 115 119 128 128 136 

 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Number of Completed Audit 

Products 98 90 91 79 85 76 74 74 

Percent of Statutory Audits 

Completed by the Required Date 100 100 100 100 100 100 100 100 

Audit Budget and Performance 

($31,182,000 from direct appropriations, and $9,000,000 from reimbursable resources): 

The Office of Audit (OA) conducts audits intended to ensure the accountability of resources, 

protect information, and provide recommendations for improving the integrity, economy, 

efficiency, effectiveness, of programs and operations within the Department and within OIG’s 

jurisdictional boundaries, which include those of the Council. The requested funding for 

FY 2022 is necessary to perform mandated work (including audits/assessments of financial 

statements, information systems security program and practices, cybersecurity information 

sharing, improper payments and recoveries, charge card programs, material loss reviews of failed 

insured depository institutions regulated by the OCC, and data quality audits of spending data), 

and to maintain an appropriate level of oversight of programs and operations consistent with the 

OIG’s responsibilities under the Inspector General Act of 1978, amended. In FY 2022, OIG will 

also continue to provide oversight of Treasury’s government-wide role and responsibilities under 

the CARES Act, FY2021 Consolidated Appropriations Act, and ARP. Reimbursable funding 

agreements support financial statement audits of Treasury and oversight of the State Small 

Business Credit Initiative and the Small Business Lending Fund. Reimbursable funding 

agreements also support Treasury financial audits for which Treasury OIG is the lead office in 

selecting and overseeing contractor selection. 

Description of Performance

OA plans to complete 74 audit products in FY 2021, and 74 in FY 2022. The number of audit 

products was reduced beginning in FY 2019 due to decreased staffing to cover increased 

administrative costs (rent). In FY 2020, the OA completed 85 audit products, and met all 

statutory audit timelines. Audit products included audit reports, evaluation reports, the Inspector 

General’s Semi-Annual Reports to Congress, and the Inspector General’s annual memoranda to 

the Secretary of the Treasury and the designated Chairperson of the Gulf Coast Ecosystem 
OIG - 15 

Restoration Council, on the most significant management and performance challenges facing the 

Department and Gulf Coast Ecosystem Restoration Council, respectively. 

Audit products can also include responses to specific information requests by the Congress. By 

completing independent and timely assessments of programs and operations across its 

jurisdiction, the Office of Audit supports the OIG’s mission of promoting integrity, efficiency, 

effectiveness of those programs and operations. The recommendations for improvement in 

programs and operations noted through OIG’s assessments directly support both the Treasury 

Department and the Gulf Coast Ecosystem Restoration Council in achieving their strategic goals 

and meeting their respective missions. 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $6,913 $7,164 $11,512 $11,344 $10,520 $10,520 $11,180 

Budget Activity Total $6,913 $7,164 $11,512 $11,344 $10,520 $10,520 $11,180 

Full-time Equivalents (FTE) 33 43 42 39 39 44 46 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of All Cases Closed During 

Fiscal Year That Were Referred for 

Criminal/Civil/Administrative Action. 

84 84 98 80 91 80 80 80 

Investigations Budget and Performance 

($11,180,000 from direct appropriations): 

The Office of Investigations (OI) prevents, detects, and investigates complaints of fraud, waste, 

and abuse impacting Treasury programs and operations. This includes the detection and 

prevention or deterrence of employee misconduct and fraud, or related financial crimes within or 

directed against Treasury. OI refers its cases to the Department of Justice, state or local 

prosecutors for criminal prosecution or civil litigation, or to agency officials for corrective 

administrative action. 

With almost $4 billion in Treasury-related contracts, there is an increased risk of contract fraud 

across all Treasury bureaus and programs. OI initiated a program of providing integrity briefs to 

contract personnel notifying them of the responsibilities to report fraud, waste, and abuse within 

U.S. Treasury contracts and programs. OI works with the U.S. Department of Justice to 

prosecute False Claims Acts in federal court to recover funds through civil penalties. 

Additionally, OI conducts criminal investigations to prosecute contracts engaging in fraudulent 

activity, such as kickbacks, product substitution, bid manipulation, and many other types of 

contract fraud. OI continues to work allegations directly impacting the American Reinvestment 

and Recovery Act and the Gulf Coast Restoration Trust Fund. 
OIG - 16 

OI directs investigative efforts toward those that subvert bank examination processes and/or 

perpetrate fraud impacting the Bank Secrecy Act oversight responsibilities of Treasury bureaus, 

subsequently defrauding the nation’s financial infrastructure, and eroding the public’s trust. 

In addition to the grant programs listed above, the OI has seen a noted increase in fraud 

impacting other significant Treasury programs and operations, including leaks of Treasury 

information, as well as fraud impacting the Treasury payment processing service operated by the 

Bureau of Fiscal Service. OI remains committed to investigating benefit, improper payment and 

other monetary fraud associated with the programs and operations of the Treasury Department. 

Additionally, the OI remains committed to investigating benefit, improper payment and other 

monetary fraud associated with the programs and operations of the Treasury Department. 

Description of Performance

In FY 2020 OI met the Investigative Performance Measure target (Target – 80 percent; Actual – 

91 percent), opened 76 new investigations and closed 107 investigations. The OIG also referred 

13 investigations that substantiated administrative violations against a Treasury employee to the 

appropriate regulated bureau for action. In addition, the OIG referred 119 investigations for 

criminal prosecution and 3 investigations for civil prosecution. In FY 2020 OI charged and/or 

indicted 41 subjects. Ongoing investigations resulted in 23 subjects sentenced which resulted in 

fines, seizures, restitution, penalties, and settlements of more than $15.6 million. 

Since the inception of the CARES Act in March 2020, the OI has increased its caseload by 25 

percent for investigations that involve potential misappropriated funds of state, local, and tribal 

governments. 

OI continues to support frequent congressional inquiries, sensitive investigative requests from 

the Council of the Inspectors General on Integrity and Efficiency, and annual peer reviews of 

other Offices of Inspector General, thus ensuring a high level of professionalism within the 

Inspector General community. 

The Investigative Performance Measure is a percentage of all cases closed by OI during the 

fiscal year referred to Department Bureaus for administrative action or for criminal or civil 

prosecution by Federal or local prosecutors. The goal for OI is that at least 80 percent of closed 

cases meet the aforementioned criteria. Meeting or exceeding this goal demonstrates that OI is 

responsive to allegations and complaints referred to the office and when these referrals require 

investigation, the cases are timely, thoroughly and accurately reported to assist the Department in 

maintaining the integrity of its programs and operations, subsequently ferreting out fraud, waste, 

and abuse. The office is working to meet or exceed this measure in both FY 2021 and FY 2022. 

C – Changes in Performance Measures 

OIG has no changes in performance measures. 

D –Evidence Building Activity 

The OIG will be adding a data analysis function to its audits to use data to assess risk and feed 

decisions about programs requiring further evaluation within Treasury. The auditors within the 
OIG - 17 

Office of Audit will use this information to assess individual programs and to assess risk on a 

Treasury-wide level. Additionally, refer to the Executive Summary for a discussion of Treasurywide evidence-building functions.

Section III – Additional Information 

A – Summary of Capital Investments 

The OIG has no capital investments. Capital investments that support the OIG are included in the 

Departmental Offices plan. 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx 


Office of the Special Inspector 

General for TARP 

(SIGTARP) 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
SIGTARP - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

SIGTARP Audit .......................................................................................................................... 6

1.1 – Appropriations Detail Table .......................................................................................... 7

1.2 – Budget Adjustments Table ................................................................................................. 7

C – Budget Increases and Decreases Description ....................................................................... 7

1.3 – Object Classification (Schedule O) Obligations ................................................................ 9

D – Appropriations Language and Explanation of Changes ...................................................... 9

E – Hiring Authority Proposal .................................................................................................. 10

Section II – Annual Performance Plan and Report ................................................................. 11

A – Strategic Alignment ........................................................................................................... 11

B – Budget and Performance by Budget Activity .................................................................... 12

2.1.1 – Investigations Resources and Measures ........................................................................ 12

Investigations Budget and Performance ................................................................................... 12

2.1.2 – Audit Resources and Measures ..................................................................................... 13

Audit Budget and Performance ................................................................................................. 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
SIGTARP - 3 

Section I – Budget Request 

A – Mission Statement 

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) 

was established by section 121 of the Emergency Economic Stabilization Act of 2008 (EESA) 

(P.L. 110-343). The mission of SIGTARP is to prevent and detect fraud, waste, and abuse in the 

more than $442 billion in funds from the EESA and $2 billion in funds from the Consolidated 

Appropriations Act of 2016, and to promote economy, efficiency, effectiveness, and 

accountability in these economic stability programs. EESA programs have included bank 

investments programs, assistance to AIG and the auto industry, and housing programs intended 

to bring economic stability by preventing avoidable foreclosures, keeping people in their homes, 

and neighborhood stabilization. Under the largest ongoing housing program, Making Home 

Affordable, Treasury continues to provide incentive payments to borrowers, investors, and 

mortgage servicers – including more than 150 financial institutions – for permanently lowering 

mortgage payments to terms that are affordable and sustainable for homeowners at risk of 

foreclosure. In addition, through the Hardest Hit Fund, state housing finance agencies have 

developed locally tailored foreclosure prevention solutions in areas hard-hit by the financial 

crisis. In 2016, an additional $2 billion was allocated to participating HHF states to continue 

foreclosure prevention and neighborhood stabilization efforts, which includes for homeowners 

who are unemployed, underemployed, or suffering other hardships due to the COVID-19 

pandemic.

SIGTARP received an initial appropriation of $50 million in permanent, indefinite budget 

authority in EESA. The Public-Private Investment Program Improvement and Oversight Act of 

2009 (12 U.S.C. 5231a) provided $15 million in supplemental funding. Since 2010, SIGTARP 

has received annual appropriations to fund its operations. 

B – Summary of the Request 

The Fiscal Year (FY) 2022 Budget proposes $17 million, a reduction of 10.5 percent from the 

FY 2021 enacted level of $19 million. It also reflects a reduction of 59 percent from the FY 

2017 enacted level. The proposed budget is intended to fund Congressionally mandated 

independent oversight of EESA programs through SIGTARP criminal and civil investigations 

and independent audits. SIGTARP prioritizes investigations and audits of MHA’s Home 

Affordable Modification Program (HAMP) (which has 664,644 homeowners participating as of 

March 17, 2021) and the Hardest Hit Fund. In April 2020, SIGTARP recommended that 

Treasury shift HHF to address the pandemic and shift available EESA funding to HHF 

unemployment mortgage assistance programs. Treasury has been implementing this 

recommendation. In April 2020, Treasury extended HHF, citing employment hardships caused 

by the pandemic. 

 

SIGTARP’s work has led to recoveries for the government and other victims of $11.2 billion – a 

30 times cumulative return on investment (ROI) from SIGTARP’s annual budgets. Every year, 

the Government and other victims recover dollars that exceed SIGTARP’s enacted level. 

Recoveries to date in FY 2021 are $87 million, exceeding SIGTARP’s $19 million enacted level 

by more than four times. FY 2020 recoveries were $157.3 million, exceeding SIGTARP’s $22 

million enacted level by more than seven times. 
SIGTARP - 4 

SIGTARP Investigations

SIGTARP is a law enforcement office as Congress provided SIGTARP the authority to search, 

seize and arrest. SIGTARP’s law enforcement work has resulted in criminal charges against 456 

defendants. SIGTARP has a 97% Department of Justice (DOJ) conviction rate. Courts have 

already sentenced 306 of these defendants to prison including 74 bankers. Other convicted 

defendants await sentencing. SIGTARP’s investigations also resulted in enforcement actions by 

DOJ, the Securities and Exchange Commission (SEC) and others against 25 entities (including 

large Wall Street institutions). 

SIGTARP Investigations Related to HAMP 

SIGTARP continues its long-standing record of holding financial institutions accountable, with 

the top law enforcement priority to bring justice to unlawful conduct by financial institutions in 

HAMP. As with all investigations, SIGTARP’s investigations are backwards-looking, 

investigating past conduct and spending. SIGTARP has a number of open confidential 

investigations. SIGTARP has referred some of these investigations to DOJ. SIGTARP 

continues to work HAMP investigations cases with DOJ, other prosecutors, and regulatory 

enforcement divisions. 

In December 2020, SIGTARP’s investigation of Nationstar resulted in an $86.3 million 

enforcement action by 51 state Attorney Generals, 53 state financial regulators, and the 

Consumer Financial Protection Bureau for violating consumer protection laws and harming 

40,000 homeowners, including in HAMP, during the time period of 2012-2016. The 

investigation found that Nationstar conducted improper foreclosures, improper escrow practices, 

and improperly increased monthly payments, among other violations. Treasury distributed $1.7 

billion to Nationstar in HAMP mortgage servicer, investor, and borrower incentives ($117.7 

million in FY 2020-21), making it the third largest current HAMP institution. 

Recent HAMP activity and spending adds to SIGTARP’s existing case load. In FY 2020-2021, 

Treasury distributed $919.5 million in incentive payments under HAMP for mortgage servicers, 

investors, and borrowers. Treasury sends the distributions to the mortgage servicer, including 

banks (i.e. $91.7 million to Wells Fargo, $51.4 million to JP Morgan Chase, $49.4 million to 

Bank of America, and $17.7 million to Citigroup), and non-banks (i.e. $233.6 million to Ocwen 

Financial, $117.7 million to Nationstar). 

SIGTARP also investigated and supported the prosecution of 121 convicted scammers who 

victimized nearly 31,000 homeowners seeking foreclosure relief through HAMP. For example, 

in August 2020, a Federal court sentenced the two owners of U.S. Homeowners Relief to 12 

years and 5 years in prison for a nationwide $3.5 million fraud scheme targeting more than 250 

homeowners seeking loan modifications, including through HAMP. The company’s marketing 

materials implied they were affiliated with HAMP’s umbrella program the Making Home 

Affordable Program, made specific reference to the government website, and displayed official 

government logos. 

 
SIGTARP - 5 

SIGTARP’s Investigations Related to the Hardest Hit Fund 

SIGTARP also investigates corruption, fraud, and environmental/safety crimes such as illegal 

dumping, asbestos exposure, or contaminated dirt in demolitions of blighted properties under 

HHF. Public results from SIGTARP’s corruption investigations in HHF blight include: 

 In FY 2019, the Detroit city official in charge of demolition bids for HHF was sentenced to 

prison after his conviction for bribery conspiracy and fraud related to HHF contracts. 

 In FY 2019, a senior official from one of the largest Detroit HHF blight contractors was 

sentenced to prison after his conviction to commit fraud by taking bribes and kickbacks from 

a subcontractor related to demolition contracts, including in HHF. 

 In FY 2019, DOJ resolved False Claims Act violations against a contractor in Fort Wayne, 

Indiana who the city had awarded all its HHF blight contracts. Instead of filling postdemolition excavation sites with clean fill dirt as required, the contractor filled the holes with 

construction debris and then falsely billed HHF. 

 In FY 2020, the head of a major Detroit asbestos abatement subcontractor, and the 

subcontractor itself, was barred for 20 years from contracts in Detroit for paying bribes for 

HHF contracts. 

 In FY 2020, SIGTARP agents arrested an Illinois contractor charged with fraud in HHF 

demolitions in Hammond, Indiana. The Department of Justice charged the contractor with 

failing to dispose of demolition debris properly, and allegedly disposing of the demolition 

debris in unknown locations enabling him to avoid the registered facility fee. According to 

the indictment, the contractor allegedly submitted false disposal, dumping, and clean fill dirt 

documentation. 

 In FY 2020, SIGTARP agents arrested an Indiana contractor who the Department of Justice 

charged with submitting false documents for HHF demolitions stating that he properly 

disposed of demolition debris. The indictment alleges that the contractor improperly disposed 

of demolition debris on-site in Logansport, Indiana. 

 In FY 2021, an asbestos abatement contractor who allegedly was chosen as a subcontractor 

in Detroit demolitions was criminally charged by the Michigan Attorney General for bribery, 

false pretenses, and money laundering, including charges related to public health laws for 

asbestos removal. 

 In FY 2021, a Cleveland, Ohio land bank official was sentenced for lying to federal agents, 

including a SIGTARP agent, who were conducting an investigation about work by a 

demolition contractor awarded HHF contracts on the official’s house, for which work the 

official did not pay. 

 In FY 2021, an investigation into contractors conducting demolitions in Detroit resulted in 

the Detroit Inspector General finding that four contractors used unapproved dirt from I-94 as 

backfill. 

SIGTARP also investigates HHF mortgage assistance recipients for fraud and works with DOJ 

or state and local prosecutors to hold these defendants accountable and recover dollars lost to 

fraud. In FY 2020-21, defendants prosecuted defrauded HHF in California, Indiana, Illinois, 

Ohio, Georgia, Michigan, and South Carolina. 

SIGTARP Investigations Related to EESA Investment Programs 

SIGTARP continues to support criminal prosecutions by the Department of Justice of defendants 

that SIGTARP investigated. SIGTARP’s investigations have resulted in criminal prosecutions of 
SIGTARP - 6 

107 bankers and 100 of their co-conspirators. Courts sentenced 74 of the bankers to prison, 

along with 67 of their co-conspirators. Criminal prosecutions take time, and SIGTARP does not 

control the pace of DOJ prosecutions. Despite delays in prosecutions related to the pandemic, in 

FY 2020-21, SIGTARP has seen progress in several high-profile prosecutions in cases that have 

lasted many years, including: 

 7-year 3-month prison sentence for a Mexican national involved in a criminal enterprise to 

launder international narcotics trafficking proceeds including for the Sinaloa drug cartel 

through Saigon Bank while the bank was in TARP, in Operation Phantom Bank that charged 

25 defendants. 

 2-year prison sentence for CEO of failed TARP bank Cecil Bank in Maryland for fraud 

conspiracy and bribery that included lying to the bank’s board and a Federal Reserve 

examiner. Treasury wrote off more than $10 million in TARP when the bank filed 

bankruptcy. 

 Home confinement sentence for supervisory trader at Nomura Securities convicted of 

conspiracy to commit securities fraud in residential mortgage backed securities, including 

through EESA’s PPIP program, that caused more than $15 million in losses. The SEC also 

brought charges against this trader, others, and Nomura (who repaid $25 million to 

customers). 

SIGTARP Audit 

SIGTARP audits promote transparency, effectiveness, and efficiency, identify waste, abuse, and 

mismanagement, and prevent future fraud, waste, and abuse, in HAMP and HHF. For example: 

 SIGTARP audits identified obstacles and roadblocks to homeowners timely receiving 

assistance and made recommendations to speed assistance. 

 SIGTARP identified mismanagement by the Georgia HHF agency who had the lowest 

admission rate of any state agency in HHF, with the agency turning away two-thirds of all 

applicants and made recommendations that resulted in an increase in homeowners receiving 

assistance. 

 SIGTARP audits identified $11 million in waste, abuse, and questioned costs by HHF state 

agencies, including a Mercedes Benz, a motivational speaker who spoke about “Motivation 

by Chocolate,” holiday parties, picnics, celebratory dinners, employee gifts, employee gym 

memberships, flowers, gift cards, conferences at resorts, etc. State agency employees were 

the first recipients of the $2 billion that Congress provided HHF in 2016. One state agency 

paid for an employee lunch, “to celebrate getting new HHF funds and an employee’s 

upcoming wedding.” Another state agency threw catered barbeques, inviting 50, 60, and 90 

people, charging it to HHF. 

 SIGTARP identified abuse of HHF blight demolition program when it was used to demolish 

lived-in houses on the desired relocation site of a car dealership. 

 SIGTARP identified risks in the HHF blight demolition program of illegal dumping, 

contaminated dirt, and exposure to asbestos. 

SIGTARP’s work ensures that programs are operating effectively and efficiently, that EESA 

dollars are used as Congress intended, and that the government does not pay more for EESA than 

is necessary. 
SIGTARP - 7 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Investigations 72 $18,920 65 $16,550 59 $14,485 -9.2% -12.5% 

Audit 8 $3,080 9 $2,450 9 $2,515 0.0% 2.7% 

Subtotal New Appropriated Resources 80 $22,000 74 $19,000 68 $17,000 -8.1% -10.5% 

Other Resources 

Unobligated Balances from Prior Years 0 $1,000 0 $0 0 $0 NA NA 

Subtotal Other Resources 0 $1,000 0 $0 0 $0 NA NA 

Total Budgetary Resources 80 23,000 74 $19,000 68 $17,000 -8.1% -10.5% 

FY 2020 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 Operating Plan 80 $19,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $544 

Pay Annualization (1.0% average pay raise) 0 $39 

Pay Raise (2.7% average pay raise) 0 $313 

FERS Contribution Increase 0 $120 

Non-Pay 0 $72 

Subtotal Changes to Base 0 $544 

FY 2022 Current Services 80 $19,544 

Program Changes: 

Program Decreases (12) ($2,544) 

Staff Reduction (12) ($2,298) 

Efficiency Savings 0 ($246) 

FY 2022 President's Budget Request 68 $17,000 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) .......................................................... +$544,000 / +0 FTE 

Pay Annualization (1.0%) +$39,000 / +0 FTE 

Funds are requested for annualization of the January 2020 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$313,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise for January 2022. 

FERS Contribution Increase +$120,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

 
SIGTARP - 8 

Non-Pay +$72,000 / +0 FTE 

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

and equipment. 

Program Decreases .................................................................................... -$2,544,000 / -12 FTE 

Staff Reduction -$2,298,000 / -12 FTE 

Reduction in SIGTARP staff levels to 68 FTE. The reduction of FTE is part of responsible 

planning towards SIGTARP’s sunset. 

Efficiency Savings -$246,000/ -0 FTE 

Effect of reduction of FTE on Non-Personnel costs (training, travel, support services, etc.) 

Other adjustment (not reflected in table)

Realignment from Annual to No-Year -$3,000,000/ -0 FTE

SIGTARP will fund a portion of its operations from its no-year account. SIGTARP actively 

reduces costs and its footprint, while creating an appropriately sized, skilled, and structured 

workforce. 

SIGTARP has decreased its footprint, with ~51 percent reduction in square foot entering 

FY 2022. 

 In FY 2018, SIGTARP eliminated 50 percent of its Washington, D.C. headquarters annual 

rent expenses. 

 In FY 2019, SIGTARP eliminated 100 percent of its San Francisco annual rent expense. 

 In FY 2020, SIGTARP decreased rent under Treasury lease for the New York office ≈ 43 

percent reduction from $90K to $51K per year. 

 At the end of FY 2021, SIGTARP will close its Atlanta office eliminating 100 percent of the 

Atlanta rent expense. 

 SIGTARP reduced fleet-related expenses by 40 percent since FY 2014, with another 10 

percent reduction planned for FY 2022. 

 In FY 2022, over $6 million of the proposed budget (35 percent) will be spent on goods and 

services from the government, more than 90 percent of which will be paid to Treasury. 

 SIGTARP has eliminated management layers and is structuring the workforce in such a way 

to create maximum flexibility. 

 SIGTARP coordinates with other law enforcement agencies and Inspectors General, 

leveraging its unique position and expertise by forming law enforcement and other 

partnerships to create operational efficiencies and realize cost savings. 
SIGTARP - 9 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 9,278 6,313 5,514 

11.3 - Other than full-time permanent 1,725 700 700 

11.5 - Other personnel compensation 1,036 500 800 

11.9 - Personnel Compensation (Total) 12,039 7,513 7,014 

12.0 - Personnel benefits 3,391 3,411 2,174 

Total Personnel and Compensation Benefits $15,430 $10,924 $9,188 

21.0 - Travel and transportation of persons 115 117 150 

23.1 - Rental payments to GSA 109 100 100 

23.3 - Communications, utilities, and miscellaneous charges 13 12 12 

25.1 - Advisory and assistance services 283 175 150 

25.2 - Other services from non-Federal sources 21 16 15 

25.3 - Other goods and services from Federal sources 6,778 7,450 7,180 

25.6 - Medical care 55 35 30 

25.7 - Operation and maintenance of equipment 20 15 15 

26.0 - Supplies and materials 176 156 160 

Total Non-Personnel $7,570 $8,076 $7,812 

Total Obligations $23,000 $19,000 $17,000 

 

Full-time Equivalents (FTE) 80 74 68 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and 

transfers. 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

SPECIAL INSPECTOR GENERAL FOR THE 

TROUBLED ASSET RELIEF PROGRAM 

Federal funds 

SALARIES AND EXPENSES 

For necessary expenses of the Office of the Special 

Inspector General in carrying out the provisions of 

the Emergency Economic Stabilization Act of 2008 

(Public law 110-343), [$19,000,000] $17,000,000. 

(Depart of the Treasury Appropriations Act, 2021.)
SIGTARP - 10 

E – Hiring Authority Proposal 

Hiring Authority Similar to Other Special IG’s 

SIGTARP is requesting additional special hiring authority to enable SIGTARP to backfill critical 

vacancies with qualified personnel. This authority is similar to the special authority available to 

the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR), another 

special inspector general, pursuant to 5 U.S.C. 3161. 

Proposed Language 

‘Sec. _________ 

Section 121 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5231) is amended 

in subsection (e)(1)(B)(ii) by striking “subparagraph” and all that follows through the period at 

the end and inserting “subparagraph, the Special Inspector General may not make any 

appointment that exceeds 24 months or that extends beyond the date on which the Special 

Inspector General terminates under subsection (k).”.’
SIGTARP - 11 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The Investigations activity supports SIGTARP’s priority of law enforcement of crimes and civil 

violations of the law related to EESA, and the Audit activity supports SIGTARP’s independent 

audits of EESA. 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

SIGTARP’s goals through 2024 are: 

 Justice - protect Americans through law enforcement’s fight against EESA-related crime. 

 Impact - assess, understand, and counter the most serious risks, threats, and challenges to 

EESA. 

 Innovation - expand the use of technology, virtual information sharing, and data analytics to 

increase the expedited identification of EESA-related crime, fraud, waste, and abuse; and 

 Stewardship - ensure EESA programs and oversight proceed responsibly and transparently. 

Justice: As a law enforcement office with 86 percent of its resources focused on criminal 

investigations, SIGTARP strives to bring justice, accountability, and deterrence in the fight 

against EESA-related crimes. SIGTARP has a high DOJ conviction rate of 97 percent. 

SIGTARP’s law enforcement results are 456 defendants charged with crimes, and law 

enforcement actions against 25 corporations/organizations. SIGTARP has investigated bankers 

and banks that led to DOJ and state criminal prosecutions of more than 100 bankers (including 

74 sentenced to prison) and 100 of their co-conspirators; and civil actions by DOJ, the Securities 

and Exchange Commission and bank regulators against individuals and banks. SIGTARP caught 

and investigated 121 foreclosure rescue scammers who were convicted after DOJ prosecutions. 

These scammers victimized nearly 31,000 homeowners seeking foreclosure relief through 

HAMP. 

Impact: SIGTARP analyzes risks from the most serious and imminent threats to EESA. 

SIGTARP prioritizes its resources and conducts confidential investigations to combat serious 

threats, the largest of which SIGTARP believes is potential wrongdoing by the more than 150 

financial institutions in HAMP. Criminal and civil violations of the law by these financial 

institutions directly lead to foreclosures and other harm to homeowners. SIGTARP’s 

investigations into corruption into the HHF blight demolition program impact competition in, 

and the integrity of, this federally funded program. SIGTARP’s investigations into illegal 

dumping, contaminated dirt, and the exposure of asbestos or other hazardous materials impact 

the integrity of this federally funded program and the health, safety, and environment of the 

communities this program was intended to help. 

Innovation: SIGTARP achieved an unparalleled record of criminal charges against more than 

100 bankers through innovation. SIGTARP developed an intelligence-based method to find 
SIGTARP - 12 

crime in banks proactively without waiting for a whistleblower. SIGTARP is deploying similar 

techniques to find and investigate crime proactively in the housing, foreclosure, and demolition 

industries. By expanding the use of technology, virtual information sharing using central 

repositories of information, and data analytics, SIGTARP can expedite its identification of crime, 

fraud, waste, and abuse in HAMP and HHF. 

Stewardship: SIGTARP stands as the independent watchdog for Americans, ensuring that EESA 

programs operate and spend responsibly. SIGTARP investigators uncover costly fraud and other 

crimes. SIGTARP auditors uncovered $11 million in waste, abuse and questioned costs. 

SIGTARP leverages task forces and other partnerships to reduce its number of personnel. 

SIGTARP reduces its operating budget each year. Additionally, SIGTARP seeks to recover 

dollars lost to fraud, waste, and abuse for taxpayers and other victims, with SIGTARP achieving 

a lifetime return on investment (ROI) of 30 times its annual budget. Every year, recoveries 

exceed SIGTARP’s budget. 

 

B – Budget and Performance by Budget Activity 

2.1.1 – Investigations Resources and Measures 

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $32,478 $32,103 $28,855 $19,550 $18,920 $16,550 $14,485 

Other Resources $376 $82 $1,311 $1,000 $1,000 $3,000 $3,000 

Budget Activity Total $32,854 $32,185 $30,166 $20,550 $19,920 $19,550 $17,485 

Full-time Equivalents (FTE) 103 114 106 87 72 65 59 

 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Cases Accepted 

for Consideration by Civil or 

Criminal Authorities Resulting 

in a Positive Final Outcome 

77 81 79 77 77 60 70 70 

Percentage of Cases Presented 

to Civil or Criminal 

Authorities within Eight 

Months of Being Opened 

80 80 85 75 75 50 65 65 

Percentage of Cases That are 

Joint Agency/Task Force 

Investigations 

71 75 78 76 86 70 70 70 

Investigations Budget and Performance

($14,485,000 from discretionary appropriations, $3,000,000 from other resources) 

SIGTARP exceeded all metric targets in FY 2020. The “Percentage of Cases Accepted for 

Consideration by Civil or Criminal Authorities Resulting in a Positive Final Outcome” in 

FY 2020 was 77 percent, which exceeded the target of 60 percent. Typically, the positive 

outcome is indictment and criminal conviction of individual defendants, with a high 97 percent 

DOJ conviction rate, and enforcement actions against 25 entities. As an investigative agency, 

SIGTARP must depend on DOJ’s and other prosecutors’ ability to accept its cases for 

prosecution. 
SIGTARP - 13 

The “Percentage of Cases Presented to Civil or Criminal Authorities within Eight Months of the 

Case Being Opened” was 75 percent, which exceeded the target of 70 percent. The “Percentage 

of Cases that are Joint Agency/Task Force Investigations” with other law enforcement agencies 

was 76 percent, which exceeded the target of 70 percent. Both measures recognize that as 

SIGTARP reduces spending and staffing, it must act with efficiency, shorten its investigative 

timeline, and leverage other law enforcement partnership resources. 

2.1.2 – Audit Resources and Measures 

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $7,618 $7,530 $5,092 $3,450 $3,080 $2,450 $2,515 

Other Resource $99 0 $231 0 0 0 0 

Budget Activity Total $7,717 $7,530 $5,323 $3,450 $3,080 $2,450 $2,515 

Full-time Equivalents (FTE) 34 27 25 9 8 9 9 

 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Number of Completed Audit 

Products Identifying Waist, 

Abuse, Mismanagement, 

Inefficiencies, or Referrals to 

Investigations Division (units) 

N/A N/A 6 4 4 3 3 3 

 

Audit Budget and Performance

($2,515,000 from discretionary appropriations) 

SIGTARP exceeded its FY 2020 audit performance target of three for the “Number of 

Completed Audit Products Identifying Waste, Abuse, Mismanagement, Inefficiencies, or 

Referrals to Investigations Division,” with four products. This included SIGTARP’s 

recommendations to shift HHF to address hardships caused by the pandemic, including 

unemployment. 

D – Evidence-Building Activity 

In FY 2020, SIGTARP engaged in the following evidence-building activities: 

 Linked spending to program outputs by maintaining recoveries that exceed SIGTARP’s 

enacted levels, resulting in a positive annual ROI. 

 Determined short term and long-term questions about how SIGTARP’s audits and 

recommendations improve program effectiveness, efficiency, and prevent fraud, waste, and 

abuse. 

 Determined short term and long-term questions to ensure successful prosecutions in 

SIGTARP investigations. 

 Engaged stakeholder state agencies in the HHF to understand the demands to use HHF for 

pandemic-related unemployment and other hardships. 

 Engaged Treasury stakeholders to determine their extension of HHF and allowing changes in 

the program to address pandemic-related unemployment and other hardships. 

 Engaged law enforcement stakeholders to understand their priorities and requirements for 

criminal and civil prosecutions. 

 Engaged the public through SIGTARP’s hotline. 

 Undertook data analysis related to Hardest Hit Fund to target SIGTARP’s investigative 

efforts. 
SIGTARP - 14 

 Undertook data analysis related to HAMP to target SIGTARP’s investigative efforts.

Section III – Additional Information 

A – Summary of Capital Investments 

SIGTARP has no capital investments. Capital investments that support SIGTARP are included in 

the Departmental Offices’ plan. A summary of capital investments, including major information 

technology and non-technology investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. This website also contains a digital copy of this document.


Department of the Treasury 

Treasury Inspector General for 

Tax Administration 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022

 
TIGTA - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

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

1.2 – Budget Adjustments ........................................................................................................... 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 5

D – Appropriations Language and Explanation of Changes ...................................................... 6

E – Legislative Proposals ............................................................................................................ 6

Section II – Annual Performance Plan and Report ................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B – Budget and Performance by Budget Activity ...................................................................... 7

2.1.1 – Audit Resources and Measures ....................................................................................... 7

Audit Budget and Performance ................................................................................................... 7

2.1.2 – Investigations Resources and Measures .......................................................................... 9

Investigations Budget and Performance ................................................................................... 10

Inspections and Evaluations ...................................................................................................... 12

C – Changes in Performance Measures .................................................................................... 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments ....................................................................................... 13

 
TIGTA - 3 

Section I – Budget Request 

A – Mission Statement 

Provide quality professional audit, investigative, and inspection and evaluation services that 

promote integrity, economy, and efficiency in the administration of the Nation’s tax system. 

B – Summary of the Request 

The Treasury Inspector General for Tax Administration’s (TIGTA) Fiscal Year (FY) 2022 

budget request of $175,762,000 represents an increase of 3.24 percent above its FY 2021 enacted 

level. Funding TIGTA’s FY 2022 budget request will enable TIGTA to conduct critical audit, 

investigative, and inspection and evaluation services to protect the integrity of the Nation’s 

Federal tax system. In accordance with the requirements of Section 6(f)(1) of the Inspector 

General Act of 1978 (as amended),1 TIGTA submits the following information related to its 

FY 2022 budget request: 

• The aggregate budget request for TIGTA operations is $175,762,000; 

• The portion of the request needed for TIGTA training is $1,800,000; and 

• The portion of the request needed to support the Council of the Inspectors General on 

Integrity and Efficiency is $632,743. 

Funding for TIGTA allows its oversight efforts to continue, and for each dollar invested over the 

five-year period covering FY 2016 – FY 2020, TIGTA has produced an average annual return of 

$94. 

1.1 – Appropriations Detail 

Dollars in Thousands 

FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audit 328 $66,260 341 $64,851 341 $65,216 0.0% 0.56% 

Investigations 403 $103,990 419 $105,399 419 $110,546 0.0% 4.88% 

Subtotal New Appropriated 

Resources 731 $170,250 760 $170,250 760 $175,762 0.0% 3.24% 

Other Resources 

Reimbursable 2 $624 2 $700 2 $700 0.0% 0.00% 

Recoveries from Prior Years 0 $220 0 $0 0 $0 NA NA 

Unobligated Balances from Prior 

Years 0 $5,012 0 $3,729 0 $5,000 NA 34.08% 

Subtotal Other Resources 2 $5,856 2 $4,429 2 $5,700 0.0% 28.70% 

Total Budgetary Resources 733 176,106 762 $174,679 762 $181,462 0.0% 3.88% 

FY 2020 Other Resources and Full-time Equivalents (FTE) reflect actuals. In FY 2021, $8M in additional appropriated resources were provided in the American Rescue Plan Act of 2021 that are not reflected above. 

 

1

 5 U.S.C. app. 3 § 6(f)(1). 
TIGTA - 4 

1.2 – Budget Adjustments 

Dollars in Thousands 

FTE Amount 

FY 2021 Operating Plan 760 $170,250 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $5,300 

Pay Annualization (1.0% average pay raise) 0 $349 

Pay Raise (2.7% average pay raise) 0 $3,165 

FERS Contribution Increase 0 $1,177 

Non-Pay 0 $609 

Subtotal Changes to Base 0 $5,300 

FY 2022 Current Services 760 $175,550 

Program Changes: 

Program Increases: 0 $212 

Electric Vehicles and Associated Infrastructure 0 $212 

FY 2022 President's Budget Request 760 $175,762 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs).........................................................+$5,300,000 / +0 FTE 

Pay Annualization (1.0%) +$349,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$3,165,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$1,177,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$609,000 / +0 FTE 

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

and equipment. 

Program Increases....................................................................................+$212,000 / +0 FTE 

Electric Vehicles and Associated Infrastructure +$212,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home 

and Abroad”, the U.S. Department of the Treasury (Treasury or Department) joins in the 

Administration’s priority to develop a comprehensive plan to create good jobs and stimulate 

clean energy industries by revitalizing the Federal Government’s sustainability efforts. This 

includes Treasury’s commitment to use all available procurement authorities to augment its 

Departmentwide fleet management program with a continued focus on the leasing of electric 

vehicles (EV) and purchasing, installing, and maintaining essential infrastructure. The planned 

resources will help Treasury comply with the requirements set forth by E.O. 14008 and reduce 

the carbon footprint of emissions into the atmosphere by acquiring an updated fleet of zeroemissions vehicles that can support mission operations. 
TIGTA - 5 

For FY 2022, TIGTA requests $212,000 to fund the eventual full conversion of its fleet to 

EV. A portion of this amount will be allocated to support the purchase, installation, 

maintenance, and/or upgrade of infrastructure required to maintain an EV fleet management 

program. Currently, TIGTA has a total of 272 leased vehicles in its fleet, of which one is an 

EV. TIGTA owns an additional six vehicles that are used for communications and surveillance. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 87,437 91,059 94,328 

11.3 - Other than full-time permanent 404 455 465 

11.5 - Other personnel compensation 8,644 8,901 9,140 

11.9 - Personnel Compensation (Total) 96,485 100,415 103,933 

12.0 - Personnel benefits 40,243 43,065 46,238 

13.0 - Benefits for former personnel 0 0 0 

Total Personnel and Compensation Benefits $136,728 $143,480 $150,171 

21.0 - Travel and transportation of persons 1,988 1,988 3,004 

22.0 - Transportation of things 38 38 38 

23.1 - Rental payments to GSA 9,195 9,138 7,829 

23.2 - Rental payments to others 166 166 166 

23.3 - Communications, utilities, and miscellaneous charges 786 786 835 

24.0 - Printing and reproduction 4 4 4 

25.1 - Advisory and assistance services 2,118 1,500 1,500 

25.2 - Other services from non-Federal sources 546 546 546 

25.3 - Other goods and services from Federal sources 13,544 10,847 11,700 

25.7 - Operation and maintenance of equipment 2,055 1,485 1,485 

26.0 - Supplies and materials 733 733 733 

31.0 - Equipment 3,952 3,017 3,229 

32.0 - Land and structures 1 0 0 

42.0 - Insurance claims and indemnities 2 2 2 

91.0 - Unvouchered 220 220 220 

Total Non-Personnel $35,348 $30,470 $31,291 

Total Obligations $172,076 $173,950 $181,462 

 

Full-time Equivalents (FTE) 731 760 760 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

TIGTA received $8M in multi-year funds in the American Rescue Plan Act of 2021. The table reflects TIGTA’s plan to 

obligate $3M in FY 2021 and $5M in FY 2022. 
TIGTA - 6 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

TREASURY INSPECTOR GENERAL FOR TAX 

ADMINISTRATION 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Treasury Inspector General for Tax 

Administration in carrying out the Inspector General Act of 1978, 

as amended, including purchase and hire of passenger motor 

vehicles (31 U.S.C. 1343(b)); and services authorized by 5 U.S.C. 

3109, at such rates as may be determined by the Inspector General 

for Tax Administration; [$170,250,000]$175,762,000, of which 

$5,000,000 shall remain available until September 30, 

[2022]2023; of which not to exceed $6,000,000 shall be available 

for official travel expenses; of which not to exceed $500,000 shall 

be available for unforeseen emergencies of a confidential nature, 

to be allocated and expended under the direction of the Inspector 

General for Tax Administration; and of which not to exceed 

$1,500 shall be available for official reception and representation 

expenses. (Department of the Treasury Appropriations Act, 

2021.)

E – Legislative Proposals 

TIGTA has no legislative proposals. 
TIGTA - 7 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

TIGTA, an independent office within the Treasury, was established by Congress under the 

Internal Revenue Service (IRS) Restructuring and Reform Act of 1998.2 It provides oversight of 

IRS activities by conducting independent audits, investigations, and inspections and evaluations 

necessary to prevent and detect waste, fraud, and abuse in IRS programs and operations. TIGTA 

conducts audits of IRS operations and makes recommendations designed to improve the 

administration of the Federal tax system. TIGTA also conducts administrative and criminal 

investigations into allegations of waste, fraud, and abuse while helping to ensure that the IRS 

protects and secures taxpayer data. TIGTA also has the unique responsibility of protecting the 

IRS and its employees. 

In accordance with the Government Performance and Results Act Modernization Act (GPRAMA)

of 2010, Treasury is currently developing the FY 2022 – 2026 Departmental Strategic Plan. The 

Strategic Plan is scheduled for publication in 2022. The Annual Performance Plan will be 

updated in the FY 2023 President’s Budget to reflect new departmental strategic goals and 

objectives. TIGTA will publish a component plan that aligns bureau activities and priorities to 

the Department’s by early spring 2022. 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $59,752 $64,240 $61,099 $62,676 $65,308 $64,851 $65,216 

Reimbursable Resources $60 0 0 0 $88 0 0 

Unobligated Balances Brought 

Forward $1,780 $1,524 $1,674 $1,947 $1,908 $1,384 $1,855 

Budget Activity Total $61,592 $65,764 $62,773 $64,623 $67,304 $66,235 $67,071 

Full-time Equivalents (FTE) 335 339 328 323 328 341 341 

 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Audit Products 

Delivered When Promised to 

Stakeholders 

75 79 81 84 79 70 70 70 

Percentage of 

Recommendations Made That 

Have Been Implemented 

97 92 85 83 86 85 85 DISC 

Percentage of New Audit 

Reports with Recommendations 

to Improve Tax Administration 

N/A N/A N/A N/A N/A N/A B 70 

Key: DISC - Discontinued; B - Baseline 

Audit Budget and Performance 

($65,216,000 from direct appropriations): 

TIGTA’s Office of Audit (OA) strives to promote the economy, efficiency, and effectiveness of 

tax administration. TIGTA provides recommendations to improve IRS systems and operations 

2

 Pub. L. No. 105-206, 112 Stat. 685. 
TIGTA - 8 

and to ensure the fair and equitable treatment of taxpayers. TIGTA’s comprehensive and 

independent performance and financial-related audits of the IRS’s programs and operations 

primarily address statutorily mandated reviews and high-risk challenges the IRS faces. 

In FY 2020 and FY 2021, OA conducted multiple audits with significant impacts on critical 

areas of IRS operations, including Coronavirus Aid, Relief, and Economic Security (CARES) 

Act payments, high-income taxpayer compliance, virtual currency transactions, and tax 

withholding from foreign persons. These audits along with the accompanying recommendations 

have the potential to significantly affect millions of taxpayers and improve IRS service and 

enforcement efforts. 

The American Rescue Plan Act of 2021 (ARP Act), enacted on March 11, 2021, requires the IRS 

to issue recovery rebate payments to individuals and expands a number of tax credits. The ARP 

Act also directs the Secretary of the Treasury to establish a program to make periodic advance 

payments of the Child Tax Credit to eligible taxpayers in the second half of 2021. These 

changes will require numerous program updates to IRS systems and will likely have a significant 

impact on the 2022 Filing Season. The ARP Act provided TIGTA $8,000,000 in multi-year 

funds for oversight of recovery rebates. TIGTA plans to obligate $3,000,000 in FY 2021 and 

$5,000,000 in FY 2022. 

The IRS has played a vital role in the nationwide effort to provide economic aid to American 

families and businesses through tax relief programs and the dissemination of stimulus 

payments. As the IRS implements the tax provisions of the ARP Act, TIGTA will perform 

audits of high profile programs, such as the Child Tax Credit, to ensure that eligible taxpayers 

receive timely needed relief from financial hardship and to identify process deficiencies to 

prevent Federal Government funds from being wasted. In addition to the ARP Act audits, OA 

will continue efforts to protect and strengthen Federal tax administration by assessing IRS 

programs to implement other tax law changes, support an enhanced taxpayer experience, and 

improve tax reporting and payment compliance. 

The IRS’s implementation of audit recommendations results in: 

• Cost savings; 

• Increased or protected revenue; 

• Protection of taxpayers’ rights and entitlements; and 

• More efficient use of resources. 

In FY 2020, OA issued 75 final audit reports and other products, that: 

• Addressed a variety of high-risk issues, such as the IRS’s implementation of law changes, 

including the CARES Act, tax compliance, impact of global economies, security over 

taxpayer data, and the taxpayer experience; 

• Reported potential financial benefits totaling approximately $17.3 billion, including 

o Increased and/or protected revenue in the amount of $16.7 billion; and 

o Cost savings of $380 million; 

• Affected approximately 16.1 million taxpayer accounts; and 

• Returned an estimated $261 for every dollar invested in TIGTA’s audit program. 
TIGTA - 9 

Description of Performance 

TIGTA uses two performance measures to gauge the success of its audit program: 

• Percentage of Audit Products Delivered to Stakeholders When Promised - TIGTA’s products 

will have a more significant impact if they are delivered when needed to support 

congressional and IRS decision making. 

To determine whether products are timely, TIGTA tracks the percentage of products that are 

delivered on or before the date promised (contract date). At the end of FY 2020, the actual 

Percentage of Audit Products Delivered When Promised to Stakeholders was 79 percent, 

which exceeded the full-year target of 70 percent. TIGTA exceeded this target as a result of 

ongoing supervisory monitoring of the execution of audits to ensure timely delivery of audit 

products to stakeholders. 

• Percentage of Recommendations Made That Have Been Implemented - This measure 

assesses TIGTA’s effect on improving the IRS’s accountability, operations, and services. 

TIGTA proposes to stop reporting this metric in FY 2022 because it is no longer 

representative of the agency’s audit accomplishments. To review the IRS’s implementation 

of tax laws (including those laws that provide financial hardship relief to taxpayers), OA is 

performing more online auditing with immediate corrective action versus formal 

recommendations. As such, the data for this measure is no longer representative of TIGTA’s 

total body of audit work. 

• Percentage of New Audit Reports with Recommendations to Improve Tax Administration - 

These recommendations enhance management practices and procedures, offer ways to better 

use agency funds, and question actual expenditures. 

TIGTA proposes to add this new measure that tracks the number of new audit reports with 

recommendations to improve tax administration. 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $108,106 $100,819 $107,501 $106,866 $106,143 $105,399 $110,546 

Reimbursable Resources $475 $357 $414 $797 $536 $700 $700 

Unobligated Balances Brought 

Forward $3,220 $2,392 $3,326 $3,053 $3,104 $2,345 $3,145 

Budget Activity Total $111,801 $103,568 $111,241 $110,716 $109,783 $108,444 $114,391 

Full-time Equivalents (FTE) 454 464 438 415 403 419 419 

 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Closed Investigations 

Resulting in a Criminal, 

Administrative, or Law 

Enforcement Action 

90 90 89 91 92 81 85 85 

Key: DISC - Discontinued; B - Baseline 
TIGTA - 10 

Investigations Budget and Performance 

($110,546,000 from direct appropriations, $700,000 from reimbursable sources): 

TIGTA is statutorily mandated to protect the integrity of Federal tax administration. TIGTA 

accomplishes this mission through the investigative work conducted by the Office of 

Investigations (OI). Through its investigative programs, OI protects the integrity of the IRS and 

its ability to collect revenue owed to the Federal Government by investigating violations of 

criminal and civil law that adversely affect Federal tax administration, as well as administrative 

misconduct by IRS employees, both of which undermine the integrity of the Nation’s voluntary 

tax system. 

TIGTA’s OI uses a performance model that focuses on three primary areas of investigative 

responsibility: 

• Employee integrity; 

• Employee and infrastructure security; and 

• External attempts to corrupt tax administration. 

The performance model uses a ratio of those investigations that have the greatest impact on IRS 

operations or the protection of Federal tax administration to the total number of investigations 

conducted. These performance measures guide OI’s activities and demonstrate the value of 

TIGTA’s investigative accomplishments to its external stakeholders. 

Using investigative activities from FY 2019 and FY 2020 as a baseline, OI projects that it will 

receive approximately 7,500 complaints, open 2,400 investigations, close 2,300 investigations, 

and obtain approximately 126 criminal prosecutions in FY 2022. TIGTA’s OI conducts 

investigations with the intent of securing an actionable outcome, such as a clearance letter, or a 

criminal, civil, or administrative action. Not all investigations; however, result in an actionable 

outcome due to numerous, uncontrollable variables. Based on the total investigative hours 

logged in 2020, OI invested an average of 297.7 hours to successfully generate an actionable 

outcome. 

TIGTA’s OI expects employee integrity investigations to increase in FY 2022 to preCoronavirus pandemic levels as IRS employees return to workplaces in 2021 and expected 

increase in IRS personnel in part due to additional IRS funding in the ARP Act. Examples of 

TIGTA investigations into employee misconduct during FY 2020 include an IRS employee 

sentenced to one day imprisonment for wire fraud and theft of Government property, in 

connection with a scheme to fraudulently obtain paid military leave and other benefits from the 

IRS. In another case, an IRS employee pled guilty to multiple counts of aiding and assisting in 

the filing of a false tax return by an employee of the United States.3

 

TIGTA has a statutory responsibility to identify, investigate, and respond to threats against IRS 

personnel and physical infrastructure. With the media focused on the IRS and its policies and 

tax law revisions, TIGTA expects these types of investigations to increase through FY 2022. 

From FY 2012 through FY 2020, TIGTA processed more than 17,221 threat-related complaints 

and investigated more than 9,833 threats against IRS employees. One example of these types of 

investigations in FY 2021 involved a man indicted for threatening to blow up an IRS office. 

3 The facts in the summarized cases on this page come from court documents of the respective jurisdictions. 
TIGTA - 11 

TIGTA investigates criminal activity originating outside the IRS, such as impersonation of an 

IRS employee, attempted bribery of IRS employees, international cybercrime and identity theft, 

and procurement fraud. Currently, the IRS has approximately 53 public facing applications for 

taxpayers and businesses, and the Coronavirus pandemic has increased the need for more online 

resources for taxpayers. With additional Economic Impact Payments and Paycheck Protection 

Program (PPP) disbursements, OI expects an increase in fraudulent attempts to obtain benefits. 

In FY 2020, CARES Act cases represented 12.3 percent of OI’s investigative work hours. For 

example, a man was arrested and charged with wire and bank fraud in connection with the 

CARES Act, seeking more than $1.5 million under the PPP. He obtained an Employer 

Identification Number from the IRS and submitted loan applications which included multiple 

false documents and statements. 

Investigations into telephonic IRS impersonations is another high visibility area. Between 

October 2013 and September 2020, more than 2.5 million Americans have reportedly received 

unsolicited telephone calls from individuals who claimed to be IRS agents. The caller, using a 

fake name, provides a “badge number” and claims the victim owes taxes and is criminally liable 

for the amount owed. The victim is threatened that if he or she fails to pay the tax immediately, 

the victim will be arrested, a suit will be filed, or some other form of adverse action will be 

taken. More than 15,919 victims have reported that they had collectively paid upwards of $81.9 

million to the scammers. By the end of FY 2020, TIGTA investigations resulted in 213 

individuals charged in Federal court. For example, an Indian-based Voice over Internet Protocol 

provider and its director were indicted in a first-of-its-kind indictment for conspiracy to commit 

wire fraud and wire fraud in connection with facilitating tens of millions of scam calls to 

American taxpayers on behalf of India-based phone scammers, causing a financial loss of more 

than $20 million. As a result of OI’s efforts, reports of this activity to TIGTA have reduced from 

a high of 180,000 reports in September 2016, to approximately 137 in September 2020. 

Although this demonstrates that significant results can be obtained by forward-leaning 

investigations, it also illustrates that this activity will not likely cease as long as the scammers 

can identify potential victims. In FY 2020, OI’s total protection of dollars and financial 

accomplishments as a result of investigative activities was $43.7 million. Additionally, TIGTA’s 

investigative efforts resulted in more than $29.3 million in court-ordered fines, penalties, and 

restitution. 

Description of Performance 

TIGTA’s OI uses performance measures that identify the percentage of results derived from 

investigative activities that most accurately align with the strategic goals of the organization and 

provide the greatest impact on the protection of the integrity of Federal tax administration. At 

the end of FY 2020, the Percentage of Closed Investigations Resulting in a Criminal, 

Administrative, or Law Enforcement Action was 92 percent, which exceeded the full-year target 

of 81 percent. OI exceeded the FY 2020 performance measure target as a result of the diligent 

work of experienced executives, managers, and special agents. 

For FY 2022, OI’s performance target will remain at 85 percent for Percentage of Closed 

Investigations Resulting in a Criminal, Administrative, or Law Enforcement Action. TIGTA’s 

OI will continue to provide the IRS with the investigative coverage and information necessary to 

improve the integrity of IRS operations and mitigate threats against its employees, facilities, and 
TIGTA - 12 

data infrastructure. In addition, OI will maintain highly trained personnel available to address 

the significant vulnerabilities of taxpayer and IRS data and effectively combat compromises of 

IRS computer systems in the expanding digital environment of Federal tax administration, all of 

which contribute to maintaining the public’s confidence in the safe, fair, and effective 

administration of the Federal tax system. Through its investigative programs, OI will continue to 

protect the IRS’s ability to process approximately 253 million tax returns, collect more than 

$3.5 trillion in tax revenue, and issue more than $452 billion in refunds for the Federal 

Government.4

 

 

Inspections and Evaluations 

TIGTA’s Office of Inspections and Evaluations (I&E) identifies opportunities for improvement 

in IRS and TIGTA programs by performing inspections and evaluations that report timely, 

useful, and reliable information to decision makers and stakeholders. 

Inspections are intended to: 

• Provide factual and analytical information; 

• Monitor compliance; 

• Measure performance; 

• Assess the effectiveness and efficiency of programs and operations; 

• Share best practices; and 

• Inquire into allegation of waste, fraud, abuse, and mismanagement. 

Evaluations are intended to: 

• Provide in-depth reviews of specific management issues, policies, or programs; 

• Address Government-wide or multi-agency issues; and 

• Develop recommendations to streamline operations, enhance data quality, and minimize 

inefficient and ineffective procedures. 

In FY 2020, I&E produced seven external reports, which included reviews of: 

• Physical Security Controls; 

• Follow-up Reports (I&E Recommendations); 

• IRS Pseudonym Program; and 

• IRS Cash Payments. 

4

 Data related to the number of returns, revenue collected, and refunds comes from the IRS Data Book, 2019.
TIGTA - 13 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

1. Percentage of recommendations 

that have been implemented 

(discontinue) 

TIGTA proposes to stop reporting this metric in the 

CJ/BIB because it is no longer representative of the 

agency’s audit accomplishments. To review the 

IRS’s implementation of tax laws, TIGTA’s OA 

performs more online auditing with immediate 

corrective action versus formal recommendations. 

As such, the data for this measure is no longer 

representative of TIGTA’s total body of audit work. 

2. Percentage of audit reports with 

recommendations to improve tax 

administration (new measure) 

This measure provides information on the 

percentage of new products that include 

recommendations designed to improve tax 

administration. These recommendations enhance 

management practices and procedures, offer ways to 

better use agency funds, and question actual 

expenditures. 

D – Evidence-Building Activity 

Refer to the Executive Summary for a discussion of Treasury-wide evidence-building functions. 

Section III – Additional Information 

A – Summary of Capital Investments 

Technology Investments – TIGTA has no major information technology investments. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx 


Department of the Treasury 

Special Inspector General for 

Pandemic Recovery 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 

 
SIGPR - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

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

1.2 – Object Classification (Schedule O) Obligations ................................................................ 4

C – Appropriations Language ..................................................................................................... 4

Section II – Annual Performance Plan and Report ................................................................... 5

A – Strategic Alignment ............................................................................................................. 5

B – Budget and Performance by Budget Activity ...................................................................... 6

Audit Budget and Performance ................................................................................................... 6

Investigations Budget and Performance ..................................................................................... 7

C – Evidence-Building Activity .................................................................................................. 7

Section III – Additional Information .......................................................................................... 8

A – Summary of Capital Investments ......................................................................................... 8

 
SIGPR - 3 

Section I – Budget Request 

A – Mission Statement 

To ensure that the American taxpayer gets the best return on investment by promoting the 

economy, efficiency, effectiveness, and integrity of Coronavirus Relief and Economic Security 

(CARES) Act1 funds and programs. 

B – Summary of the Request 

The Special Inspector General for Pandemic Recovery (SIGPR) received an initial appropriation 

of $25 million derived from amounts made available under Section 4027 of the CARES Act. The 

Budget proposes appropriations language to provide SIGPR an additional $25 million in 2022 

from unobligated balances that remain available under Section 4027, the Economic Stabilization 

Fund. This funding is critical in ensuring that SIGPR's audit and investigative services have the 

necessary resources to protect the integrity of CARES Act funds. 

SIGPR’s Fiscal Year (FY) 2022 budget request of $25,000,000 will enable SIGPR to conduct 

critical audit, investigative, and inspection and evaluation services to protect the integrity of the 

covered funds under the CARES Act. SIGPR’s FY 2021 Full-time equivalent (FTE) projection 

is 66. In accordance with the requirements of section 6(g)(1) of the Inspector General Act of 

1978 (as amended),2

 SIGPR submits the following information in support of its appropriations 

request for FY 2022 operations: 

 The aggregate budget request for the operations of SIGPR is $25,000,000; 

 The portion of this amount needed for SIGPR training is $500,000; and 

 The portion of this amount estimated in support the Council of Inspectors General on 

Integrity and Efficiency (CIGIE) is estimated to be $60,000. 

The amount requested for training satisfies all SIGPR training needs for FY 2022. 

1.1 – Appropriations Detail 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request * % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audit 2 $15,000 0 $0 38 $12,500 NA NA 

Investigations 0 $10,000 0 $0 38 $12,500 NA NA 

Subtotal New Appropriated 

Resources 2 $25,000 0 $0 76 $25,000 NA NA 

Other Resources 

Unobligated Balances from Prior 

Years 0 $0 66 $24,000 0 $0 -100.0 NA 

Subtotal Other Resources 0 $0 66 $0 0 $0 -100.0 NA 

Total Budgetary Resources 2 $25,000 66 $24,000 76 $25,000 -100.0 NA 

In FY 2020, $25M in appropriated no-year resources were provided to establish SIGPR under the Coronavirus Aid, Relief, and Economic 

Security (CARES) Act. 

*Includes funding for administrative, information technology, counsel, and external affairs to support the mission of the Office of Audits and the

Office of Investigations. 

1

 Pub. L. 116-136, 134 Stat. 281 (2020). 

2

 5 U.S.C. app. 3 § 6(g)(1); cf. 15 U.S.C. § 9053(c)(1) (directing SIGPR to perform enumerated duties “in 

accordance with” the Inspector General Act of 1978). 
SIGPR - 4 

1.2 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 202 FY 2021 FY 2022 

Object Classification 

Actual

Obligatio

Estimated 

Obligations 

Estimated 

Obligations * 

11.1 - Full-time permanent 0 6,000 12,000 

11.9 - Personnel Compensation (Total) 0 6,000 12,000 

12.0 - Personnel benefits 0 2,000 5,000 

Total Personnel and Compensation Benefits $0 $8,000 $17,000 

23.1 - Rental payments to GSA 0 0 2,000 

25.3 - Other goods and services from Federal sources 1,000 8,000 6,000 

Total Non-Personnel $1,000 $8,000 $8,000 

Total Obligations $1,000 $16,000 $25,000 

 

Full-time Equivalents (FTE) 2 66 76 

In FY 2020, $25M in appropriated no-year resources were provided to establish SIGPR under section 4027 of the Coronavirus Aid, 

Relief, and Economic Security (CARES) Act. 

*Includes funding for administrative, information technology, counsel, and external affairs to support the mission of the Office of Audits 

and the Office of Investigations. 

C – Appropriations Language 

Of amounts appropriated by section 4027(a) of the CARES Act (15 U.S.C. § 9061) that are 

available for obligation as a result of the deobligation of amounts that were, as of January 9, 

2021, obligated for the credit subsidy cost of loans, loan guarantees, or other investments that the 

Secretary of the Treasury had committed to make under paragraphs (1) through (3) of subsection 

4003(b) of the CARES Act (15 U.S.C. § 9042(b)(1)-(3)), $25,000,000 shall be available to the 

Special Inspector General for Pandemic Recovery to carry out section 4018 of the CARES Act 

(15 U.S.C. § 9053): Provided, That such funds shall be available in addition to any other 

amounts available for that purpose. 
SIGPR - 5 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

SIGPR, an independent office within the Department of the Treasury (Treasury), was established 

by section 4018 of the CARES Act in 2020. It provides oversight of Treasury activities under the 

CARES Act by conducting independent audits, investigations, and inspections and evaluations 

necessary to prevent and detect waste, fraud, and abuse in programs and operations. SIGPR 

conducts audits of these Treasury programs, investigates fraud by recipients of CARES Act 

funds, and makes recommendations designed to improve the administration of pandemic 

recovery programs. SIGPR also conducts criminal investigations into allegations of waste, 

fraud, and abuse while helping to ensure that SIGPR protects and secures taxpayer data. 

In accordance with the Government Performance and Results Act Modernization Act (GPRAMA)

of 2010, Treasury is currently developing the FY 2022 – 2026 Departmental Strategic Plan. The 

Strategic Plan is scheduled for publication in 2022. The Annual Performance Plan will be 

updated in the FY 2023 President’s Budget to reflect new departmental strategic goals and 

objectives. SIGPR published a Strategic Plan for FY 2021 - 2023 and will publish a new 

component plan that aligns bureau activities and priorities to the Department’s in 2022.

Priority 1: High Impact Work 

SIGPR offices of audit and investigations deliver timely, relevant, and high impact results. 

SIGPR’s objectives are to identify risk and weaknesses in program areas within SIGPR’s 

jurisdiction and recommend solutions that help mitigate fraud, waste, abuse, and 

mismanagement. In doing so, SIGPR employs risk-based approaches to prioritize and target 

audits and investigations in areas that provide the greatest impact and address the highest risks. 

SIGPR achieves these objectives through several strategies. SIGPR provides timely information, 

conclusions, and recommendations to SIGPR stakeholders for appropriate action and resolution. 

The offices of audit and investigations design and implement a comprehensive process that 

identifies, prioritizes, and assesses risks. Both offices develop and implement a process for 

proactive efforts that focus on high dollar loans or high impact projects. SIGPR leverages data 

analytics to identify meaningful indicators of fraud or misuse of CARES Act funds. Finally, 

SIGPR allocates resources to projects that address the highest risk and most vulnerable areas. 

Priority 2: Integrity in Oversight Work

SIGPR offices of audits and investigations delivers accurate, professional, independent, and 

actionable work products. 

SIGPR’s objective is to employ work processes that drive the timely completion of accurate, 

relevant, and impactful projects that adhere to professional standards. 

To do so, SIGPR develops policies, processes, and procedures to ensure that SIGPR work 

complies with the quality standards used in the federal inspector general community. The offices 

of audit and investigations ensure that projects and work products comply with professional 

standards, including, but not limited to the Government Auditing Standards and Quality 
SIGPR - 6 

Standards for Investigations. Finally, SIGPR participates in the CIGIE audit and investigation 

external peer review process. 

Priority 3: Inclusiveness and Innovation 

SIGPR promotes a diverse and inclusive culture that is innovative, high performing, and 

engaged. 

SIGPR’s objectives are to recruit and retain diverse, high-performing talent; to use innovative 

techniques and approaches that improve efficiency and effectiveness; and to promote transparent 

and timely communications and inclusiveness. 

SIGPR employs several strategies to do so. SIGPR develops a recruitment strategy that targets 

the knowledge and skills necessary to meet the mission critical needs of the organization and 

provides opportunities for continuous development and professional growth to meet current and 

future needs of the organization. SIGPR provides a work environment that promotes a positive 

work-life balance. SIGPR provides data analytic capabilities to support projects. SIGPR also 

collaborates with other agencies to leverage best practices, tools, data, and technologies. 

Priority 4: Effective Collaboration and Outreach

SIGPR will work with oversight partners and others to ensure efficiency, effectiveness, and 

transparency in SIGPR’s work. 

SIGPR’s objective is to leverage strategic communications to expand outreach to and 

collaboration with SIGPR’s stakeholders and partners, as well as to communicate SIGPR’s 

findings to Executive Branch leaders, Congress, and the public. 

To do so, SIGPR builds strong relationships with internal and external partners and stakeholders 

to identify emerging trends of fraud, waste, and abuse and share best practices. SIGPR develops 

a communications plan for outreach and collaboration and reports on SIGPR findings and 

activities. Finally, SIGPR tracks, analyzes, and reports on Department of the Treasury CARES 

Act relief. 

B – Budget and Performance by Budget Activity 

Audit Budget and Performance

($12,500,000 from direct appropriations): 

SIGPR’s Office of Audit (OA) conducts audits, reviews, and evaluations of loans, loan 

guarantees, and other investments made by Treasury under programs established under the 

CARES Act as well as Treasury’s management of programs established under the CARES Act. 

The Office of Audits takes an analytic approach to auditing CARES Act programs and has 

populated databases with CARES Act funding recipient information. The office is calculating 

individual risk scores to pinpoint where auditing resources can be best applied. The office also 

refers instances of suspected abuse to other SIGPR offices and outside entities. 

The most recent highlights include: 

 Compiled and developed a data set including more than 50 million rows of data, covering 

more than $150 billion in CARES Act funding; and 
SIGPR - 7 

 Initiated three new projects about the Direct Loan Program, the Main Street Lending 

Program, and the CARES Act funds given to the U.S. Postal Service. 

Investigations Budget and Performance 

($12,500,000 from direct appropriations): 

SIGPR’s Office of Investigations prevents, detects, and investigates allegations of fraud, abuse, 

or misconduct involving CARES Act funds and programs within SIGPR’s jurisdiction. In 

addition, the office manages SIGPR’s hotline. The office receives complaints, conducts 

investigations, and works in partnership with U.S. Attorneys’ Offices on these matters. These 

investigations relate to activities that, in the aggregate, potentially represent millions of dollars of 

questionable expenditures related to funds distributed under the CARES Act. 

The Office of Investigations also participates in several working groups. These include the 

CIGIE Financial Oversight Assistant Inspector General for Investigations Working Group and 

federal Office of Inspector General Investigation COVID-19 working groups, including 

subcommittees of the Pandemic Response Accountability Committee. The Office of 

Investigations has also formed new referral protocols with the Office of Compliance Inspections 

and Examinations (OCIE) of the Securities and Exchange Commission (SEC) and Treasury’s 

suspension and debarment unit in the Office of the Procurement Executive. These new referral 

protocols have already produced referrals to SIGPR. The office also continues to coordinate 

closely with other law-enforcement agencies with the goal of forming law-enforcement 

partnerships, including task-force relationships, across the federal government. 

The most recent highlights include: 

 Assisted the U.S. Attorney’s Office for the District of South Dakota in a recently indicted 

case involving multiple fraud counts regarding pandemic relief programs; 

 Uncovered and developed 35 new investigative leads relating to suspected fraud under 

various CARES Act programs; and 

 Received and vetted 363 hotline complaints during the second quarter. 

SIGPR is developing performance measures for the Audits and Investigations programs. 

C – Evidence-Building Activity 

The Foundations for Evidence-Based Policymaking Act of 20183

 emphasizes collaboration to 

advance data and evidence-building function in the Federal Government by statutorily mandating 

Federal evidence-building activities, open government data, confidential information protection, 

and statistical efficiency.

SIGPR supports Treasury’s efforts to use data and evidence for decision-making about program 

operations, policy, and regulations. As described above, SIGPR supports these efforts through 

data-driven decision-making when selecting which audits and investigations to pursue that have 

the most significant impact on detecting fraud, waste, and abuse in CARES Act programs. 

Additionally, refer to the Executive Summary for a discussion of Treasury-wide evidencebuilding functions.

3

 Pub. L. 115-435, 132 Stat. 5529 (2018). 
SIGPR - 8 

Section III – Additional Information 

A – Summary of Capital Investments 

SIGPR has no capital investments. Capital investments that support SIGPR are included in the 

Departmental Offices plan. 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx 


Department of the Treasury 

Community Development 

Financial Institutions Funds 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
CDFI – 2 

Table of Contents

Section I – Budget Request........................................................................................................... 4

A – Mission Statement ................................................................................................................ 4

B – Summary of the Request ...................................................................................................... 4

1.1 – Appropriations Detail Table .............................................................................................. 5

1.2 – Budget Adjustments Table ................................................................................................. 6

C – Budget Increases and Decreases Description ....................................................................... 6

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals .......................................................................................................... 10

Section II – Annual Performance Plan and Report ................................................................. 11

A – Strategic Alignment ........................................................................................................... 11

B – Budget and Performance by Budget Activity .................................................................... 12

2.1.1 – Administration Resources and Measures ...................................................................... 12

2A – Administration Budget and Performance ......................................................................... 12

2.1.2 – Community Development Financial Institutions Program Resource and Measures .... 13

2B – Community Development Financial Institutions Program............................................... 14

2.1.3 – New Markets Tax Credit Resources and Measures ...................................................... 15

2C – New Markets Tax Credit Program ................................................................................... 15

2.1.4 – Bank Enterprise Award Program Resources and Measures ......................................... 16

2D – Bank Enterprise Award Program ..................................................................................... 16

2.1.5 – Native American CDFI Assistance Program Resources and Measures ........................ 17

2E – Native American CDFI Assistance Program .................................................................... 17

2.1.6 – Healthy Food Financing Initiative Detail Resources and Measures ............................. 18

2F – Healthy Food Financing Initiative .................................................................................... 18

2.1.7 – Small Dollar Loan Program Resource and Measures ................................................... 18

2G - Small Dollar Loan Program .............................................................................................. 19

2.1.8 – Capital Magnet Fund Program Resource Detail Table ................................................. 19

2H. – Capital Magnet Fund Program ........................................................................................ 19

2.1.9 – CDFI Bond Guarantee Program Resource Detail Table ............................................... 20

2.1.10 – CDF Bond Guarantee Program Financing Account – Non-Budgetary Summary ...... 20

2I. – CDFI Bond Guarantee Program Budget and Performance .............................................. 20

C – Changes in Performance Measures .................................................................................... 21
CDFI – 3 

D– Evidence-Building Activity ................................................................................................ 23

Section III – Additional Information ........................................................................................ 25

A – Summary of Capital Investments ....................................................................................... 25
CDFI – 4 

Section I – Budget Request 

A – Mission Statement 

To expand economic opportunity for underserved people and communities by supporting the 

growth and capacity of a national network of community development lenders, investors and 

financial service providers. 

B – Summary of the Request 

The Community Development Financial Intuitions Fund (CDFI Fund) requests the following for 

fiscal year (FY) 2022: 

 $215.4 million for the Community Development Financial Institutions Program (CDFI 

Program) to provide Financial Assistance (FA) and Technical Assistance (TA) awards, 

training and technical assistance. Through the CDFI Program, the CDFI Fund makes awards 

to invest in and build the capacity of Community Development Financial Institutions 

(CDFIs) to serve low-income communities lacking adequate access to affordable financial 

products and services. Increased investment in the CDFI Program supports the need for 

greater capital flow to communities and geographies where access to capital is least efficient 

and most needed, including rural areas and persistent poverty counties, and to CDFIs seeking 

to build both capital and capacity to deploy resources. The proposed budget supports FA and 

TA awards to CDFIs to further goals that include, among others: 

- Economic development (job creation, small business lending, and commercial real estate 

development); 

- Affordable housing development (housing development and homeownership); 

- Provision of financial services (such as basic banking services to underserved 

communities); and 

- Provision of development services (such as financial literacy or homebuyer counseling 

and education). 

 $2 million for the AmeriCorps CDFI Economic Mobility Corps, to be operated in 

conjunction with Corporation for National and Community Service (CNCS) to place national 

service members at Certified CDFI’s to strengthen the capacity of CDFI’s to perform 

activities related to financial literacy, financial planning, and other financial counseling 

activities, giving priority to positions in rural areas and to veterans. 

 $26 million for the Bank Enterprise Award Program (BEA Program), which incentivizes 

insured banks and thrifts to invest in CDFIs and increase their lending and financial services 

in economically distressed communities. 

 $21.5 million for FA and TA awards for the Native CDFI Assistance Program (NACA 

Program), which provides awards and training to CDFIs that primarily serve Native 

Communities and to entities proposing to become or create Native CDFIs. These awards will 

increase access to credit, capital, and financial services in Native Communities. 

 $33.6 million in administrative funding to support a variety of purposes, including: 

- Staffing and resource demands created by significant growth across all programs, 

including the NMTC Program and the CDFI Bond Guarantee Program (BG Program); 

- Administration of non-monetary programs and activities, including compliance 

monitoring and CDFI Certification; 
CDFI – 5 

- Enhancement of the Awards Management Information System (AMIS) including 

automation of key elements of the compliance and reporting systems and continuing 

improvements to operational efficiency and effectiveness; and 

- Continued refinement of the CDFI Program Assessment and Risk Management (ARM) 

Framework - a suite of tools that the CDFI Fund uses to assess the financial and 

programmatic risk of CDFI Program applicants and award recipients, enhance datadriven decision-making, and mitigate post-award compliance reporting risks. 

 $23 million for Healthy Food Financing Initiative (HFFI) awards to CDFIs to expand 

financing for healthy food options in underserved urban and rural communities. 

 $8.5 million for the Small Dollar Loan Program (SDL Program) to provide grants for Loan 

Loss Reserves and Technical Assistance to CDFIs to establish and maintain small dollar loan 

programs. The SDLP Program funding is intended to expand consumer access to mainstream 

financial institutions by providing alternatives to high cost small dollar lending. The SDLP 

Program funding is also intended to help unbanked and underbanked populations build 

credit, access affordable capital, and allow greater access into the mainstream financial 

system. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Community Development 

Financial Institutions Fund 

Program 

0 $163,500 0 $165,000 0 $215,383 NA 30.5% 

Economic Mobility Corps 0 $2,000 0 $2,000 0 $2,000 NA 0.0% 

Bank Enterprise Award Program 0 $25,000 0 $26,000 0 $26,000 NA 0.0% 

Native American CDFI 

Assistance Program 0 $16,000 0 $16,500 0 $21,500 NA 30.3% 

Administrative 70 $28,500 82 $29,000 89 $33,617 8.5% 15.9% 

Healthy Food Financing 

Initiative 0 $22,000 0 $23,000 0 $23,000 NA 0.0% 

Small Dollar Loan Program 0 $5,000 0 $8,500 0 $8,500 NA 0.0% 

Subtotal New Appropriated 

Resources 70 $262,000 82 $270,000 89 $330,000 8.5% 22.2% 

Other Resources 

User Fees 0 $1,043 0 $1,164 0 $1,200 NA 3.1% 

Recoveries from Prior Years 0 $600 0 $500 0 $500 NA 0.0% 

Unobligated Balances from Prior 

Years 0 $193,017 0 $13,569 0 $31,169 NA 129.7% 

Subtotal Other Resources 0 $194,660 0 $15,233 0 $32,869 NA 115.8% 

Total Budgetary Resources 70 $456,660 82 $285,233 89 $362,869 8.5% 27.2% 

FY 2020 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

 
CDFI – 6 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 Operating Plan 82 $270,000 

Program Changes: 

Program Increases: 7 $60,000 

CDFI Program 0 $50,383 

Native American CDFI Assistance (NACA) Program 0 $5,000 

Administration 7 $4,617 

FY 2022 President's Budget Request 89 $330,000 

C – Budget Increases and Decreases Description 

Program Increases .................................................................................... +$60,000,000/ +7 FTE 

CDFI Program +$50,383,000 / +0 FTE 

The CDFI Fund will increase the amount of Financial Assistance (FA) and Technical Assistance 

(TA) awards. An increase of $50.4 million to the CDFI Program will result in larger FA awards 

to increase the number of business and microenterprise loans, home improvement and purchase 

loans, residential real estate transactions, and other consumer loans and products offered by 

CDFI awardees. This increase would also support Small and/or Emerging Community 

Development Financial Assistance applicants and provide more funding for capacity building 

grants through the technical assistance component. 

Native American CDFI Assistance (NACA) Program +$5,000,000 / +0 FTE 

The CDFI Fund will increase the NACA Program by $5 million, which will result in larger FA 

awards to increase the number of business and microenterprise loans, home improvement and 

purchase loans, residential real estate transactions, and other consumer loans and products in 

Native Communities. It will also be used to increase participation by Native communities by 

improving technical assistance and capacity building for Native CDFIs. 

Administration +$4,617,000 / +7 FTE 

An increase of $4.6 million in administration funding will support the hiring of seven new staff 

for program, compliance, performance reporting and data collection, and IT system 

development. It will support research on the Growth and Self-sufficiency of the CDFI Sector and 

its Impact on Underserved Communities, Minorities and Economic Inequality. In addition, it will 

enable the CDFI Fund to prepare for updating all its program eligibility data based on the 

forthcoming Decennial Census data, and update the CDFI Impact Mapping System (CIMS) used 

for compliance and performance reporting across programs. Finally, it will provide more support 

for IT contracts related to system enhancement and development, especially new program 

applications and improved efficiency and automation of compliance validation processes. 
CDFI – 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 9,539 10,319 11,173 

11.9 - Personnel Compensation (Total) 9,539 10,319 11,173 

12.0 - Personnel benefits 3,170 3,489 3,818 

Total Personnel and Compensation Benefits $12,709 $13,808 $14,991 

21.0 - Travel and transportation of persons 23 72 70 

24.0 - Printing and reproduction 0 2 2 

25.1 - Advisory and assistance services 4,484 3,938 1,743 

25.2 - Other services from non-Federal sources 44 20 20 

25.3 - Other goods and services from Federal sources 6,630 9,410 10,171 

25.7 - Operation and maintenance of equipment 386 1,918 2,600 

26.0 - Supplies and materials 24 25 26 

31.0 – Equipment 3,912 4,807 6,494 

41.0 - Grants, subsidies, and contributions 422,332 236,000 323,383 

Total Non-Personnel $437,835 $256,192 $344,509 

Total Obligations $450,544 $270,000 $359,500 

 

Full-time Equivalents (FTE) 70 82 89 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

 
CDFI – 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

COMMUNITY DEVELOPMENT FINANCIAL 

INSTITUTIONS FUND 

SALARIES AND EXPENSES 

To carry out the Riegle Community Development and 

Regulatory Improvement Act of 1994 (subtitle A of title I of 

Public Law 103–325), including services authorized by section 

3109 of title 5, United States Code, but at rates for individuals 

not to exceed the per diem rate equivalent to the rate for EX-III, 

[$270,000,000]$330,000,000. Of the amount appropriated under 

this heading— 

(1) not less than [$167,000,000]$217,383,000, notwithstanding 

section 108(e) of Public Law 103–325 (12 U.S.C. 4707(e)) with 

regard to Small and/or Emerging Community Development 

Financial Institutions Assistance awards, is available until 

September 30, [2022]2023, for financial assistance and technical 

assistance under subparagraphs (A) and (B) of section 108(a)(1), 

respectively, of Public Law 103–325 (12 U.S.C. 4707(a)(1)(A) 

and (B)), of which up to $1,600,000 may be available for 

training and outreach under section 109 of Public Law 103–325 

(12 U.S.C. 4708), of which up to [$2,374,500]$3,153,750 may 

be used for the cost of direct loans, of which up to $6,000,000, 

notwithstanding subsection (d) of section 108 of Public Law 

103–325 (12 U.S.C. 4707 (d)), may be available to provide 

financial assistance, technical assistance, training, and outreach 

to community development financial institutions to expand 

investments that benefit individuals with disabilities, and of 

which not less than $2,000,000 shall be for the Economic 

Mobility Corps to be operated in conjunction with the 

Corporation for National and Community Service, pursuant to 

42 U.S.C. 12571: Provided, That the cost of direct and 

guaranteed loans, including the cost of modifying such loans, 

shall be as defined in section 502 of the Congressional Budget 

Act of 1974: Provided further , That these funds are available to 

subsidize gross obligations for the principal amount of direct 

loans not to exceed $25,000,000: Provided further, That of the 

funds provided under this paragraph, excluding those made to 

community development financial institutions to expand 

investments that benefit individuals with disabilities and those 

made to community development financial institutions that serve 

populations living in persistent poverty counties, the CDFI Fund 

shall prioritize Financial Assistance awards to organizations that 
CDFI – 9 

invest and lend in high-poverty areas: Provided further, That for 

purposes of this section, the term "high-poverty area" means any 

census tract with a poverty rate of at least 20 percent as 

measured by the 2011–2015 5-year data series available from 

the American Community Survey of the Bureau of the Census 

for all States and Puerto Rico or with a poverty rate of at least 20 

percent as measured by the 2010 Island areas Decennial Census 

data for any territory or possession of the United States; 

(2) Not less than [$16,500,000]$21,500,000, notwithstanding 

section 108(e) of Public Law 103–325 (12 U.S.C. 4707(e)), is 

available until September 30, [2022]2023, for financial 

assistance, technical assistance, training, and outreach programs 

designed to benefit Native American, Native Hawaiian, and 

Alaska Native communities and provided primarily through 

qualified community development lender organizations with 

experience and expertise in community development banking 

and lending in Indian country, Native American organizations, 

Tribes and Tribal organizations, and other suitable providers; 

(3) not less than $26,000,000 is available until September 30, 

[2022]2023, for the Bank Enterprise Award program; 

(4) not less than $23,000,000, notwithstanding subsections (d) 

and (e) of section 108 of Public Law 103–325 (12 U.S.C. 

4707(d) and (e)), is available until September 30, [2022]2023, 

for a Healthy Food Financing Initiative to provide financial 

assistance, technical assistance, training, and outreach to 

community development financial institutions for the purpose of 

offering affordable financing and technical assistance to expand 

the availability of healthy food options in distressed 

communities; 

(5) not less than $8,500,000 is available until September 30, 

[2022]2023, to provide grants for loan loss reserve funds and to 

provide technical assistance for small dollar loan programs 

under section 122 of Public Law 103–325 (12 U.S.C. 4719): 

Provided, That sections 108(d) and 122(b)(2) of such Public 

Law shall not apply to the provision of such grants and technical 

assistance; 

(6) up to [$29,000,000]$33,617,000 is available until September 

30, [2021]2022, for administrative expenses, including 

administration of CDFI Fund programs and the New Markets 

Tax Credit Program, of which not less than $1,000,000 is for the

development of tools to better assess and inform CDFI 
CDFI – 10 

investment performance and CDFI Fund program impacts, and 

up to $300,000 is for administrative expenses to carry out the 

direct loan program; and 

(7) during fiscal year [2021]2022, none of the funds available 

under this heading are available for the cost, as defined in 

section 502 of the Congressional Budget Act of 1974, of 

commitments to guarantee bonds and notes under section 114A 

of the Riegle Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. 4713a): Provided, That 

commitments to guarantee bonds and notes under such section 

114A shall not exceed $500,000,000: Provided further, That 

such section 114A shall remain in effect until December 31, 

[2021]2022: Provided further, That of the funds awarded under 

this heading, except those provided for the Economic Mobility 

Corps, not less than 10 percent shall be used for awards that 

support investments that serve populations living in persistent 

poverty counties: Provided further, That for the purposes of this 

paragraph and paragraph (1), the term "persistent poverty 

counties" means any county, including county equivalent areas 

in Puerto Rico, that has had 20 percent or more of its population 

living in poverty over the past 30 years, as measured by the 

1990 and 2000 decennial censuses and the 2011–2015 5-year 

data series available from the American Community Survey of 

the Bureau of the Census or any other territory or possession of 

the United States that has had 20 percent or more of its 

population living in poverty over the past 30 years, as measured 

by the 1990, 2000 and 2010 Island Areas Decennial Censuses, 

or equivalent data, of the Bureau of the Census. (Department of 

the Treasury Appropriations Act, 2021.)

Extension of the Bond 

Guarantee Program 

through December 31, 

2022 to allow more time 

to close complex and 

time-consuming bond 

commitments 

E – Legislative Proposals 

The Budget proposes to expand the Capital Magnet Fund by $12 billion as part of the American 

Jobs Plan. 

 
CDFI – 11 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The CDFI Fund’s mission is to expand economic opportunity for underserved people and 

communities by supporting the growth and capacity of a national network of community 

development lenders, investors, and financial service providers. 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

 

The CDFI Fund’s award recipients provide loans, investments, business counseling, basic 

banking services, and financial literacy training in some of the most distressed communities in 

the nation. These are the communities where job opportunities remain stagnant and that 

otherwise lack access to more mainstream forms of capital – the places in the United States that 

are not progressing economically as other parts of our economy have improved. CDFI Fund 

award recipients use their awards to increase access to capital and help improve the quality of 

life and boost the local economy in these communities. 

The CDFI Fund has articulated five goals in its FY 2018-2022 Strategic Plan aimed at 1) 

increasing the impact of the CDFI Fund network by supporting the growth, reach, and 

performance of CDFI Fund awardees; 2) building the capacity of the CDFI Fund and its network 

to better capture, produce, and utilize data to improve decision-making, performance and 

accountability; 3) ease the customer experience and create on-ramps for new and emerging 

CDFIs and CDEs to access CDFI Fund programs; 4) promote awareness of CDFIs in order to 

expand their access to new resources; and 5) create organizational excellence by increasing 

workforce engagement, enhancing team performance, and improving operational efficiency. 

The FY 2022 Budget will advance these goals by allowing the CDFI Fund to administer and 

fully staff all programs including those that are authorized by Congress but do not require annual 

appropriations (i.e., the NMTC Program). In addition, the CDFI Fund will continue to conduct 

ongoing program compliance for prior-year award recipients for all programs. 

The Budget request is also intended to cover the cost to administer certification of CDFIs, as 

required by the Riegle Act, as well as Community Development Entities (CDEs), as required by 

the NMTC program. CDFI certification is a prerequisite for eligibility for the BG Program, the 

SDL Program and the Capital Magnet Fund (CMF), as well as other federal programs outside of 

the CDFI Fund. CDE certification is a prerequisite for eligibility for the NMTC program. 

The Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (P. L. 116-260) 

provided $3 billion to the CDFI Fund to CDFIs deliver immediate assistance in communities 

impacted by the COVID-19 pandemic. In the spring of FY 2021, the CDFI Fund plans to award 

$1.25 billion of these funds through its newly established CDFI Rapid Response Program (CDFI 

RRP), which is designed to quickly deploy capital to CDFIs through a streamlined application 
CDFI – 12 

and review process. Through the CDFI RRP, CDFIs will be provided with resources necessary to 

respond to the economic impacts of the COVID-19 pandemic in distressed and underserved 

communities and people. 

To further assist distressed and underserved communities in responding to the economic impacts 

of the COVID–19 pandemic, the CDFI Fund will also begin the process of making $1.75 billion 

in funds available to support lending in minority communities and minority lending institutions 

through its Minority Lending Program (MLP) in FY 2022. Of these funds, $1.2 billion is 

reserved for award to minority lending institutions, which are CDFIs, that are designated as 

Minority Depository Institutions (MDIs) or meet other standards for accountability to minority 

populations as determined by the CDFI Fund; and, $550 million will be awarded to CDFIs to 

expand their lending, grant making, or investment activity in low- or moderate-income minority 

communities and to minorities that have significant unmet capital or financial service needs.

B – Budget and Performance by Budget Activity 

2.1.1 – Administration Resources and Measures 

Dollars in Thousands

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $23,600 $26,000 $27,000 $27,000 $28,500 $29,000 $33,617 

Budget Activity Total $23,600 $26,000 $27,000 $27,000 $28,500 $29,000 $33,617 

Full-time Equivalents (FTE) 77 74 66 67 76 82 89 

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan. The FY 2016 - FY 2020 columns represent realized 

resources for full-time equivalents. 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

All Award Cycle Time (Months) 7.6 6.3 5.8 6.4 5.5 6.5 6.5 6.5 

All-Time to Initial Disbursement 

(#Months) B 7.5 7.0 7.0 4.4 4.5 4.5 4.5 

ALL- Number of Affordable 

Housing Units Developed or 

Produced 

35,251 27,443 34,083 61,839 44,361 21,500 I I 

Key: B – Baseline; I – Indicator 

2A – Administration Budget and Performance 

($33,617,000 from direct appropriations): 

This encompasses the CDFI Fund’s operational support and management activities for each of its 

ongoing award programs. It includes, among other activities, developing notices of award 

availability and application materials; reviewing and evaluating certification and award 

applications; selecting awardees; finalizing the terms of award agreements; making 

disbursements; collecting and evaluating performance data; monitoring awardees’ compliance; 

and award closeout processes.

 
CDFI – 13 

Description of Performance: 

The CDFI Fund’s three administrative performance measures focus on organization-wide 

efficiency, measuring how quickly awards are made and funds are disbursed, and the creation of 

affordable housing units across all CDFI Fund programs. 

• The All Cycle Time measures the average time from the date when applications are received 

to the date of award announcement (calculated in months as an average across all programs). 

The Award Cycle Time in FY 2020 was 5.5 months, thereby exceeding the target of 6.5 

months. This achievement reflects improved efficiency in making awards, which is largely a 

function of the implementation of the AMIS system. For FY 2021 and FY 2022 the target will 

remain at 6.5 months because the CDFI Fund will be standing up additional programs funded 

by the Consolidated Omnibus Act, 2021 and the SDL Program. 

• The Time to Initial Disbursement indicates how quickly the CDFI Fund completes award 

agreements and makes the first disbursement of funds or issues tax credits. The FY 2019 

program disbursement results were tabulated in FY 2020 at 4.4 months which exceeded the 

4.5 month target due to improved efficiencies through the AMIS system. The target will 

remain at 4.5 months for FY 2021 and FY 2022. 

 

• The Number of Affordable Housing Units Developed or Produced metric measures the 

number of affordable housing units developed or produced as a result of CDFI Fund awards as 

reported by CDFI Program, NMTC Program, and CMF awardees and NMTC allocation 

recipients. The FY 2020 actual result of 44,361 affordable housing units was well above the 

target of 21,500 affordable housing units. This measure is being converted to an indicator 

because of the variability in projecting annually the number of affordable housing units 

funded for three programs makes it difficult to project a reliable target. See section C: 

Proposed Changes to Performance Measures. 

2.1.2 – Community Development Financial Institutions Program Resource and Measures 

Dollars in Thousands

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $153,423 $161,500 $160,000 $160,000 $165,500 $167,000 $215,383 

Budget Activity Total $153,423 $161,500 $160,000 $160,000 $165,500 $167,000 $215,383 

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan. 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY2021 FY2022 

Actual Actual Actual Actual Actual Target Target Target 

CDFI - Percentage of Loans & 

Investments Originated in 

Eligible Distressed or 

Underserved Communities by 

Dollar Amount of Loans 

(Annual %) 

80.9 81.2 73.7 75.6 75.0 60.0 60.0 60.0 

CDFI - Percentage of Loans & 

Investments Originated in 

Eligible Distressed or 

Underserved Communities by 

Number of Loans 

81.5 83.0 72.1 78.8 79.6 60.0 60.0 60.0 
CDFI – 14 

2B – Community Development Financial Institutions Program 

($217,383,000 from direct appropriations) 

The CDFI Program makes FA awards to CDFIs that have comprehensive business plans for 

creating community development impact and that demonstrate the ability to leverage private 

sector sources of financing, as well as TA grants to CDFIs and entities proposing to become 

CDFIs. CDFIs use FA awards to further goals such as: 

• Economic development (job creation, business development, and commercial real estate 

development); 

• Affordable housing (rental housing and homeownership); and 

• Financial services (provision of basic banking services and financial literacy training to 

underserved people and communities). 

For the FY 2020 CDFI Program round, the CDFI Fund awarded $142.8 million in Base-FA and 

TA awards to 357 organizations in 45 states, the District of Columbia, and Puerto Rico. In 

addition to the Base-FA awards, the CDFI Fund will also provide the following supplemental FA 

awards: 

 $22 million to 13 CDFIs through the Healthy Food Financing Initiative-Financial Assistance 

(HFFI-FA) awards, a supplemental program designed to encourage investments in businesses 

that provide healthy food options for communities; 

 $4 million to 17 CDFIs through the Disability Funds-Financial Assistance (DF-FA) awards, a 

supplemental program designed to help CDFIs finance projects and services that will assist 

individuals with disabilities; and 

 $18.5 million to 106 CDFIs through the Persistent Poverty Counties-Financial Assistance 

(PPC-FA) awards, which is a supplemental program designed to encourage investments in 

Persistent Poverty Counties nationwide. 

The request includes $2 million for the AmeriCorps CDFI Economic Mobility Corps (EMC), 

which is a joint initiative of the CDFI Fund and CNCS that places full-time national service 

members in Certified CDFIs to enhance their capacity to provide financial literacy, financial 

planning, budgeting, saving, and other financial counseling activities. Award funding for the 

inaugural round of EMC was made available through the CNCS FY 2021 AmeriCorps State and 

National Grant program Notice of Funding Opportunity (NOFO) that was released September 

2020. EMC awards will be announced May 2021. 

Description of Performance: 

The CDFI Program has two measures: (1) the percentage of loans and investments originated in 

eligible distressed communities or made to underserved populations, as measured against the 

total dollar amount of loans originated by awardees; and (2) the percentage of loans and 

investments originated in eligible distressed communities or to underserved populations, as 

measured against the total number of loans originated by awardees. 

Certification criteria require that all certified CDFIs originate at least 60.0 percent of their loans 

and investments in eligible distressed census tracts or to underserved populations. The target is 

set at a level that allows CDFIs to balance their mission to serve distressed communities and 

underserved populations with their safety and soundness considerations. 
CDFI – 15 

In FY 2020, the CDFI Program surpassed the 60.0 percent threshold for the percentage of both 

the dollar amount (75 percent) and the number of CDFI loans (79.6 percent) made to eligible 

distressed communities and underserved populations. 

2.1.3 – New Markets Tax Credit Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $0 $0 $0 $0 $0 $0 $0

Budget Activity Total 0 0 0 0 0 0 0

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

NMTC - Percentage of Loans and 

Investments That Went Into Severely 

Distressed Communities 

74.5 77.5 73.6 80.3 77.2 75.0 75.0 75.0 

2C – New Markets Tax Credit Program 

($0 from direct appropriations): 

The NMTC Program stimulates capital investment in low-income communities nationwide by 

permitting individual and corporate taxpayers to receive a non-refundable tax credit against 

federal income taxes for making equity investments in CDEs. CDEs that receive the tax credit 

allocation authority under the program are domestic corporations or partnerships that provide 

loans, investments, or financial counseling in low-income urban and rural communities. 

On December 27, 2020, legislation was enacted extending allocation authority of the NMTC 

Program for five years through calendar year (CY) 2025 at $5 billion. 

Description of Performance: 

In FY 2020, the CDFI Fund awarded $3.5 billion in CY 2019 NMTC Program allocation 

authority to 76 organizations out of a pool of 206 applicants that requested $14.7 billion in 

NMTC allocations. 

In FY 2020, CDEs reported that 77.2 percent of NMTC investments were made in severelydistressed communities, exceeding the target of 75 percent. The expectation is that the NMTC 

investments performance report for FY 2021 and FY 2022 will meet or exceed the 75 percent 

target. 
CDFI – 16 

2.1.4 – Bank Enterprise Award Program Resources and Measures 

Dollars in Thousands

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $19,000 $23,000 $25,000 $25,000 $25,000 $26,000 $26,000

Budget Activity Total $19,000 $23,000 $25,000 $25,000 $25,000 $26,000 $26,000 

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan. 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

BEA - Increase in Community 

Development Activities Over 

Prior Year For All BEA Program 

Applicants ($ million) 

539 522 646 429 469 530 DISC DISC 

Bank Enterprise Award Program 

(BEA) leverage ratio is the dollar 

sum of all award recipients’ 

qualified activities to the dollar 

sum of all awards in a given year. 

NA NA NA NA NA NA B B 

Key: B – Baseline, DISC - Discontinued 

2D – Bank Enterprise Award Program 

($26,000,000 from direct appropriations): 

The BEA Program provides monetary awards to regulated banks and thrifts for increasing their 

investments in CDFIs through grants, stock purchases, loans, deposits, and other forms of 

financial and technical assistance, and for increasing their lending, investment, and service 

activities in economically-distressed communities where at least 30 percent of residents have 

incomes less than the national poverty level and where the unemployment rate is at least 1.5 

times the national unemployment rate. 

Description of Performance: 

The BEA Program measures applicants’ increase in qualified community development activities 

over the prior year. For the FY 2020 BEA Program round, the CDFI Fund awarded $25.2 

million in grants to 138 organizations. 

In FY 2020, the BEA Program reported $469 million in qualified community development 

activities, which was below the target of $530 million. However, the FY 2020 results are the last 

year for reporting on this performance measure as it is being replaced by a new performance 

measure. The new BEA Program performance measure is a leverage ratio of the dollar sum of all 

award recipients’ qualified activities to the dollar sum of all awards in a given year. See section 

C: Proposed Changes to Performance Measures for an explanation of the change. 
CDFI – 17 

2.1.5 – Native American CDFI Assistance Program Resources and Measures 

Dollars in Thousands

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $15,500 $15,500 $16,000 $16,000 $16,000 $16,500 $21,500

Budget Activity Total $15,500 $15,500 $16,000 $16,000 $16,000 $16,500 $21,500 

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan. 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

NACA - Percentage of NACA 

Loans and Investments in Native 

Areas ($ Amount of Loans) 

61.2 47.9 84.9 78.0 57.2 50.0 50.0 50.0 

NACA - Percentage of NACA 

Loans and Investments in Native 

Areas (# of Loans) 

96.3 95.1 94.4 86.0 72.1 50.0 50.0 50.0 

2E – Native American CDFI Assistance Program 

($21,500,000 from direct appropriations): 

Through the NACA Program, the CDFI Fund assists entities in overcoming barriers that prevent 

access to credit, capital, and financial services in American Indian, Alaska Native, and Native 

Hawaiian communities. The NACA Program makes monetary awards to increase the number 

and capacity of existing or new Native CDFIs (i.e., CDFIs that serve Native communities). In 

addition, the NACA Program provides training to help strengthen and develop Native CDFIs. 

Native CDFIs lend where other mainstream financial institutions do not and serve the poorest 

individuals, families, and businesses in Native communities 

For the FY 2020 round of the NACA Program, The CDFI Fund awarded $15.2 million in FY 

2020 NACA Program Base-FA and TA awards to 40 organizations in 18 states. In addition, the 

CDFI Fund awarded $1.6 million in NACA Program PPC-FA awards to 11 Native CDFIs. 

Description of Performance: 

The two measures of performance for the NACA Program are: (1) the percentage of the number 

of loans, and (2) the dollar amount of loans, made in tribal lands (based on Federal Designations 

of Tribal Areas) or to Native people. In accordance with their Assistance Agreements, NACA 

awardees are required to originate 50 percent or more of their loans and investments in Native 

areas or to Native populations. This threshold is set to allow the awardees to balance their 

mission of serving Native areas and populations with safety and soundness considerations. 

In FY 2020, NACA recipients reported outcome data for their 2019 activities, which showed that 

57.2 percent of loans by dollar amount and 72.1 percent of the number of loans originated were 

in Native Areas or to Native borrowers, thereby exceeding the target of 50 percent for both 

measures. 
CDFI – 18 

2.1.6 – Healthy Food Financing Initiative Detail Resources and Measures 

Dollars in Thousands

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $22,000 $22,000 $22,000 $22,000 $22,000 $23,000 $23,000

Budget Activity Total $22,000 $22,000 $22,000 $22,000 $23,000 $23,000 $23,000 

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan. 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

HFFI - Retail Outlets 

Created/Preserved 19 24 20 23 25 20 I I 

Key: I – Indicator 

2F – Healthy Food Financing Initiative 

($23,000,000 from direct appropriations):

The HFFI aims to eliminate “food deserts” – low-income urban and rural areas in the United 

States with limited access to affordable and nutritious food – by financing interventions that 

expand the supply of, and demand for, nutritious foods. The objectives include increasing the 

distribution of agricultural products, developing and equipping grocery stores, and strengthening 

producer-to-consumer relationships. 

Through the HFFI, the CDFI Fund provides awards to Certified CDFIs to help address the need 

for healthy food in underserved and low-income communities. These organizations use federal 

grants, below market-rate loans, loan guarantees, and tax credits to attract private sector 

financing for projects that increase access to healthy food options. 

Description of Performance: 

The primary HFFI performance measure is the number of healthy food retail stores created and 

maintained in low-income areas that have been identified through detailed census tract analysis 

as having limited access to healthy food options. In FY 2020, the number of HFFI Retail outlets 

created was 25, thereby exceeding the target of 20 new retail outlets for activities carried out in 

2019. See Section C: below for a discussion of the changes to the HFFI performance measure 

which is being converted to an indicator. 

2.1.7 – Small Dollar Loan Program Resource and Measures 

Dollars in Thousands

FY 2020 FY 2021 FY 2022 

Resource Level Actual Operating Plan Request 

Appropriated Resources $5,000 $8,500 $8,500 

Budget Activity Total $5,000 $8,500 $8,500 

FY 2020 appropriated resources represents the approved operating plan. 
CDFI – 19 

2G - Small Dollar Loan Program 

($8,500,000 from direct appropriations): 

Authorized by Section 1206 of the Dodd-Frank Wall Street Reform and Consumer Protection 

Act (P.L. 111-203), the SDL Program provides grants for Loan Loss Reserves and Technical 

Assistance to CDFIs to establish and maintain small dollar loan programs. SDL Program funding 

is intended to expand consumer access to mainstream financial institutions by providing 

alternatives to high cost small dollar lending. The SDL Program funding is also intended to help 

unbanked and underbanked populations build credit, access affordable capital, and allow greater 

access into the mainstream financial system. 

Description of Performance: 

This is a new program and the performance measures are still being developed in consultation 

with Office of Strategic Planning and Performance Improvement (OSPPI) and the Office of 

Performance Budget (OPB). 

2.1.8 – Capital Magnet Fund Program Resource Detail Table 

Dollars in Thousands

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Actual Estimate 

GSE Distribution $100,292 $119,413 $144,917 $131,884 $175,809 $382,748 $200,000 

Budget Activity Total $100,292 $119,413 $144,917 $131,884 $175,809 $382,748 $200,000 

FTE 0 4 4 3 5 5 6 

2H. – Capital Magnet Fund Program 

($0 from direct appropriations): 

The CMF Program authorized by the Housing and Economic Recovery Act of 2008 (P.L. 110-

289), establishes recurrent funding of the CMF through allocations from the GovernmentSponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. Through CMF, the CDFI Fund 

provides grants to CDFIs and qualified non-profit housing organizations to finance affordable 

housing, community service facilities, and economic development facilities. Award recipients 

can use funds to create financing tools such as loan funds, loan loss reserves, revolving loan 

funds, risk-sharing loans, and loan guarantees. 

Description of Performance: 

The primary performance measures of the CMF are the number of affordable housing units for 

which CMF funding was a source of financing, and the degree to which private funding sources 

were leveraged by CMF financing. Data on affordable housing units are included in performance 

table 2.1.1. 

Based on award recipients’ projections, the FY 2020 round of the CMF will leverage an 

estimated $5.3 billion in public and private investment. The award recipients plan to develop 

more than 23,000 affordable housing units, including nearly 20,300 rental units and more than 

2,600 homeownership units. Of these: 

• 97 percent of all housing units will be developed for low-income families (80 percent of the 

area median income or below). 
CDFI – 20 

• 98 percent of the homeownership units will be developed for low-income families (80 percent 

of the area median income or below). 

• 61 percent of the rental units will be developed for very low-income and extremely low-income 

families (50 percent of the area median income or below). 

2.1.9 – CDFI Bond Guarantee Program Resource Detail Table 

Dollars in Thousands

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Obligations $265,000 $245,000 $150,000 $150,000 $100,000 $500,000 $500,000 

Loan Limitation Obligation 

Authority $750,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 

2.1.10 – CDF Bond Guarantee Program Financing Account – Non-Budgetary Summary 

Dollars in Thousands

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Obligations $265,000 $245,000 $150,000 $150,000 $100,000 $500,000 $500,000 

Collections* 9,377 $19,789 $34,337 $51,493 $61,621 $79,473 $97,396 

*Includes the principal and interest repayments and a 10 basis point fee for administrative expenses pursuant to Section 1134 of the Small 

Business Jobs Act of 2010. These amounts assume a zero subsidy rate with bond loan disbursement of $230 million and $305 million in FY 2021 

and FY 2022, respectively. 

 

2I. – CDFI Bond Guarantee Program Budget and Performance 

Through the BG Program, Treasury provides a 100 percent guarantee of bonds (including 

principal, interest, and call premiums) issued by Qualified Issuers. Bonds issued through the 

program support CDFI lending and investment activity in underserved communities by providing 

a source of long-term capital. Qualified Issuers use bond proceeds to finance loans to eligible 

CDFIs for community and economic development purposes. 

Since the inception of the program, the total amount of bonds guaranteed is $1.692 billion. A 

total of 26 Eligible CDFIs and three Qualified Issuers participate in the BG Program. Upon the 

closing of each bond, the eligible CDFIs have five years to lend or disburse the bond proceeds. 
CDFI – 21 

The table below provides the year-to-date (FYE) and proposed disbursement for the top eight 

asset classes:

C – Changes in Performance Measures 

In FY 2021, the CDFI Fund worked with OSPPI and the OPB to make improvements and 

changes to existing performance measures and to develop new measures for new programs in FY 

2022. The table below details the proposed changes to existing measures. In addition, the CDFI 

Fund is working with OSSPI and OPB to develop a performance measure for the Small Dollar 

Loan Program. 

Performance Measure or Indicator Proposed Change and Justification 

1. Performance Measure: Bank Enterprise 

Award Program (BEA) leverage ratio is the 

dollar sum of all award recipients’ qualified 

activities to the dollar sum of all awards in a 

given year. 

The Bank Enterprise Award Program 

performance measure is recommended for 

replacement. The current metric measures the 

BEA-Increase in Community Development 

Activities Over Prior Year for All BEA Program 

Applicants ($ million) which was based on all 

applicant data. The variability of annual reported 

activity was volatile and hence unstable to 

forecast a reliable target based on applicants’ 

baseline forecasts. The new measure will 

establish a baseline from which to compute a 

target threshold for the leverage ratio that must 

be met or exceeded by the program’s annual 

eligible activities. 

2. Indicator Name: The Number of new 

Healthy Food Financing Initiative 

(HFFI) Retail Outlets 

The HFFI performance measure is 

recommended to be converted to an indicator 

because the variability of investments in new 

retail HFFI outlets makes it difficult to forecast 
CDFI – 22 

an annual target. The current measure reports the 

number of new healthy food retail stores created 

or maintained in low-income areas that have 

been identified by the USDA as having lowincome and limited access to healthy food 

options. 

3. Indicator Name: The All‐Affordable 

Housing measure 

The All‐Affordable Housing measure tabulates 

the number of affordable housing units 

developed or produced as reported by CMF, 

CDFI and NACA programs and NMTC 

Allocations award recipients. The measure is 

recommended for conversion to an indicator 

because the variability in investments made 

annually by the three programs that fund 

affordable housing units has made it difficult to 

reliably project a target. 
CDFI – 23 

D– Evidence-Building Activity 

The table below describes the CDFI Fund’s major evidence-building activities and corresponding 

resources. Additionally, refer to the Executive Summary for a discussion of Treasury-wide evidencebuilding functions. 

Type of Evidence 

Building Activity 

Major Activities and Planned 

Projects

Resource Types Use 

Evaluation 

Collection and 

analysis of data to 

assess effectiveness 

and efficiency of 

programs, policies, or 

procedures

Estimated share of all 

Evidence-Building 

Activities: 

 10 %

Major activities: 

 Use of ARM framework to 

conduct certification and 

award application data 

evaluation, post-award 

compliance, and reporting 

risks 

 FS&R: 2 FTEs, series 

1101, 

 CCME: 4 FTEs, series 

1160, 

 CDFI/NACA: 4 

FTEs, series 1101, 

1160 

 IT support: 1 FTE, 

series 2210 

 ARM Contract IT 

Services Task Order: 

o FY21: $ TBD 

 IAA with GSA OES: 

TBD 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 

management 

processes 

☒ By external 

partners 

(government) 

☐ By external 

partners (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Rapid Response Program 

evaluation 

Research 

Modeling or other 

systematic use of data 

to explore emerging 

issues or potential 

scenarios to generate 

new knowledge

Estimated share of all 

Evidence-Building 

Activities: 

 10 %

Major activities: 

 PPC research with MITRE 

 MITRE task order 

 FS&R: 2 FTEs, series 

1101 

 FS&R: 2 FTEs, series 

1101, 

 CDFI 25 Years 

Contract: est. @ 

$500K 

 CDFI Minority 

Impact contract: est. 

@ $200K 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 

management 

processes 

☒ By external 

partners 

(government) 

☐ By external 

partners (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

Tentative FY22 projects: 

 25 Years and Counting: An 

Examination of Growth and 

Self-Sufficiency in the 

Community Development 

Financial Institutions (CDFI) 

Industry 

 CDFI Sector’s Impact on 

Underserved Racial and 

Minority Communities and 

Inequality 

Analysis 

Routine and frequent 

use of data that 

produces insights for 

decision making and 

program management

Major activities: 

 Certification, Compliance and 

Performance data collection 

and reporting: ACR, NMTC, 

CDFI, CMF, BEA 

 FS&R: 4 FTEs, series 

1101 

 CCME: 4 FTEs, 

series 1160 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 
CDFI – 24 

Type of Evidence 

Building Activity 

Major Activities and Planned 

Projects

Resource Types Use 

Estimated share of all 

Evidence-Building 

Activities: 

 75 %

FY22 projects: 

 ARM framework: Scope 

possible changes to the: 

Certification Assessment Tool 

(CAT) due to deployment of 

new certification application, 

the Non-Compliance 

Scorecard, (NCS), and the 

Application Assessment Tool 

(AAT). Additional will be 

based on need and budget 

availability. 

 BEA: 4 FTEs, series 

1160 

 IT support: 2 FTEs, 

series 2210 

 Data Collection IT 

TOs: 

o FY21: $650,000 

o FY22: $ TBD 

 FS&R: 2 FTEs, series 

1101 

 CCME: 4 FTEs, 

series 1160 

 CDFI/NACA: 4 

FTEs, series 1101, 

1160 

 IT support: 1 FTE, 

series 2210 

 ARM IT TO: 

o FY22: $ TBD 

management 

processes 

☒ By external 

partners 

(government) 

☐ By external 

partners (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

Statistics 

Collection, 

compilation, and 

processing of data for 

describing or 

estimating 

characteristics or 

insights concerning 

groups

Estimated share of all 

Evidence-Building 

Activities: 

 5 %

Major activities: 

 InfoUSA or comparable 

database to replace Business 

Analyst for ESRI. 

 STATA software concurrent 

licenses for 5-7 staff. 

 Procurement est.: @ 

$10K 

 Procurement est.: 

$10-12K 

 Hire 1 FS&R FTE 

series 1101 to 

manage Census data 

and CIMS updates. 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 

management 

processes 

☒ By external 

partners 

(government) 

☒ By external 

partners (nongovernment) 

☒ By unaffiliated 

external 

researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Decennial Census data update 

of all CDFI Fund program 

eligibility requirements. 

 CIMS Mapping System update 
CDFI – 25 

Section III – Additional Information 

A – Summary of Capital Investments 

As part of its FY 2022 capital investment strategy, the CDFI Fund plans to spend approximately 

$8.64 million for enhancements, operations, and maintenance of its IT infrastructure. The CDFI Fund 

has no major IT investments, nor any capital investments other than IT. 

Non-Major IT Investments: 

For FY 2022, the CDFI Fund has identified two non-major IT investments: AMIS and the CDFI Fund 

public website. AMIS is an enterprise-wide commercial, cloud-based solution that supports CDFI 

Fund certification, tax credit allocation, bond guarantee, and all grant programs. The CDFI Fund 

public website, another cloud-based solution, provides access to general information about the CDFI 

Fund and is used to ensure the public can obtain information and guidance regarding CDFI Fund 

programs. In FY 2022, the CDFI Fund plans to provide Operations and Maintenance (O&M) support 

for these two investments, as well as enhancements to AMIS. O&M includes system updates, help 

desk support, and software licenses. AMIS enhancements include annual program updates and 

improvements to program compliance monitoring and reporting. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx. 


Department of the Treasury 

Financial Crimes Enforcement 

Network 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
FinCEN - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

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

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 13

2.1.1 – BSA Administration and Analysis Resources and Measures ....................................... 13

BSA Administration and Analysis Budget and Performance ................................................... 13

C – Evidence-Building Activity ................................................................................................ 15

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

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

 
FinCEN - 3 

Section I – Budget Request 

A – Mission Statement 

To safeguard the financial system from illicit use, combat money laundering, and promote 

national security through the strategic use of financial authorities and the collection, analysis, 

and dissemination of financial intelligence. 

B – Summary of the Request 

The FY 2022 President’s Budget requests additional resources totaling $63,576,000 providing 

$60,279,000 for the implementation of the Anti-Money Laundering Act/Corporate Transparency 

Act (AMLA/CTA) of the William M. (Mac) Thornberry National Defense Authorization Act 

(NDAA) for Fiscal Year (FY) 2021 and $87,000 for the leasing of electric vehicles and purchase 

of associated infrastructure. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

BSA Administration and Analysis 264 $126,000 300 $126,963 380 $190,539 26.7% 50.1% 

Subtotal New Appropriated 

Resources 264 $126,000 300 $126,963 380 $190,539 26.7% 50.1% 

Other Resources 

Reimbursable 1 $1,613 3 $6,000 3 $6,000 0.0% 0.0% 

Recoveries from Prior Years 0 $143 0 $0 0 $0 NA NA 

Unobligated Balances from Prior 

Years 0 $26,416 0 $29,000 0 $29,000 NA 0.0% 

Subtotal Other Resources 1 $28,172 3 $35,000 3 $35,000 0.0% 0.0% 

Total Budgetary Resources 265 154,172 303 $161,963 383 $225,539 26.4% 39.3% 

FY 2020 Other Resources and Full-time Equivalents (FTE) reflect actuals. 
FinCEN - 4 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

FTE Amount 

FY 2021 Operating Plan 300 $126,963 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $3,210 

Pay Annualization (1.0% average pay raise) 0 $137 

Pay Raise (2.7% average pay raise) 0 $1,109 

FERS Contribution Increase 0 $517 

Non-Pay 0 $1,447 

Subtotal Changes to Base 0 $3,210 

FY 2022 Current Services 300 $130,173 

Program Changes: 

Program Increases: 80 $60,366 

FinCEN AMLA/CTA Implementation* 80 $60,279 

Purchase of Electric Vehicles and Associated Infrastructure 0 $87 

FY 2022 President's Budget Request 380 $190,539 

*Amounts shown reflect enacted appropriations for 2021, which do not include dedicated funding for

development of the beneficial ownership data system and CTA implementation. However, FY 2022 staffing 

does assume funding, yet to be identified, is provided for this purpose in 2021. FinCEN estimates a total of 

131 new positions will be needed for full implementation of the CTA and Anti-Money Laundering Act (P.L. 

116-283). 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ......................................................... +3,210,000 / +0 FTE 

Pay Annualization (1.0%) +137,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$1,109,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$517,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$1,447,000 / +0 FTE 

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

and equipment. 

Program Increases ................................................................................. +$60,366,000 / +80 FTE 

FinCEN AMLA/CTA Implementation +$60,279,000 / +80 FTE 

The enactment of the FY 2021 National Defense Authorization Act (NDAA) included significant 

reforms to the U.S. anti-money laundering and countering the financing of terrorism (AML/CFT) 

regime through the AMLA and the CTA. 

The AMLA seeks to strengthen, modernize, and streamline the existing AML/CFT regime by 

promoting innovation, regulatory reform, and industry engagement through forums, such as the 

Bank Secrecy Act Advisory Group (BSAAG) and FinCEN Exchange. The AMLA calls for 

FinCEN to work closely with our regulatory, national security, and law enforcement partners to 

identify risks and priorities and provide valuable feedback to our industry partners. 
FinCEN - 5 

Within the AMLA, the CTA establishes uniform beneficial ownership reporting requirements for 

corporations, limited liability companies, and other similar entities formed or registered to do 

business in the United States. The CTA provides FinCEN with the authority to collect that 

information and share it with authorized government authorities and financial institutions, 

subject to effective safeguards and controls. To that end, FinCEN will use this funding to 

develop and maintain a data system for the reporting of information on beneficial ownership, 

collecting and securing the data, and creating access protocols. 

The AMLA and the CTA together set forth approximately 40 rulemaking or other requirements, 

including periodic Congressional reporting on implementation efforts, assessments, and 

findings. Some key requirements include: 

1. Establishing standards for the reporting of information on beneficial ownership, building an 

information technology system to collect and secure the data, and creating access protocols; 

2. Establishing national anti-money laundering and countering the financing of terrorism 

priorities; 

3. Enhancing the whistleblower provisions to provide for a robust whistleblower program and 

new anti-retaliation protections; 

4. Reviewing, and revising as appropriate, Currency Transaction Report (CTR) and Suspicious 

Activity Report (SAR) reporting requirements, and other existing Bank Secrecy Act (BSA) 

regulations and guidance; 

5. Expanding BSA requirements and obligations to persons engaged in the trade of antiquities, 

and mandating a study on the potential expansion of BSA requirements to persons engaged in 

the art trade; 

6. Codifying the FinCEN Exchange program; 

7. Hosting a Financial Crimes Tech Symposium, and establishing two new BSAAG 

subcommittees to enhance public-private partnerships in the areas of innovation and 

technology as well as information security; 

8. Establishing a BSA Analytical Hub; 

9. Law enforcement reporting to FinCEN on the use of BSA data, procedures for additional 

feedback between FinCEN and financial institutions on the usefulness of SARs, and semiannual publication of review of SAR activity and other BSA reports, including threat 

patterns, trends, and typologies; and 

10. Codifying a pilot program to allow financial institutions to share SARs with their foreign 

branches, subsidiaries, and affiliates. 

Timely and effective AMLA and CTA implementation will be challenging and is FinCEN’s top 

priority, and we are working diligently with our domestic and international industry partners and 

law enforcement and regulatory stakeholders to implement these numerous provisions to further 

the national security and innovative strength of the United States and protect the American 

people. 

The January 1, 2021, enactment of the AMLA and CTA did not come with accompanying 

funding, and FinCEN has been diverting existing resources to meet the rigorous deadlines set 

forth in the legislation. Therefore, in order to meet this new, expansive statutory mandate, 
FinCEN - 6 

FinCEN requests this significant program increase to fund the FTE positions and information 

technology systems needed to effectively implement the AMLA and CTA. 

Purchase of Electric Vehicles and Associated Infrastructure +$87,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home 

and Aboard”, the U.S. Department of the Treasury joins in the Administration’s priority to 

develop a comprehensive plan to create good jobs and stimulate clean energy industries by 

revitalizing the Federal Government’s sustainability efforts. This includes Treasury’s 

commitment to use all available procurement authorities to augment its Department-wide fleet 

management program with a continued focus on the leasing of electric vehicles (EV) and 

purchasing, installing, and maintaining essential infrastructure. The planned resources will help 

Treasury comply with the requirements set forth by E.O. 14008 and reduce the carbon footprint 

of emissions into the atmosphere by acquiring an updated fleet of zero-emissions vehicles that 

can support mission operations. 

For FY 2022, the Financial Crimes Enforcement Network (FinCEN) will receive $87,000 to fund 

the full conversion of its fleet to EV. Of that money, approximately $25,000 will be allocated to 

the purchase, installation, maintenance, and/or upgrade of infrastructure required to maintain an 

EV fleet management program. Additionally, FinCEN will purchase one additional charging 

station to support its future EV state. Currently, FINCEN has a total of four vehicles in its fleet, 

of which two are EVs. 
FinCEN - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 35,409 41,247 51,975 

11.3 - Other than full-time permanent 409 150 150 

11.5 - Other personnel compensation 1,032 845 845 

11.8 - Special personal services payments 5 0 0 

11.9 - Personnel Compensation (Total) 36,855 42,242 52,970 

12.0 - Personnel benefits 12,093 12,799 15,479 

Total Personnel and Compensation Benefits $48,948 $55,041 $68,449 

21.0 - Travel and transportation of persons 276 816 1,155 

23.1 - Rental payments to GSA 4,570 4,971 4,971 

23.2 - Rental payments to others 29 51 3,192 

23.3 - Communications, utilities, and miscellaneous charges 2,508 2,137 2,187 

24.0 - Printing and reproduction 62 65 67 

25.1 - Advisory and assistance services 1,588 1,552 9,938 

25.2 - Other services from non-Federal sources 40,984 46,638 76,570 

25.3 - Other goods and services from Federal sources 8,972 10,143 12,939 

25.4 - Operation and maintenance of facilities 1 0 0 

25.6 - Medical care 200 226 231 

25.7 - Operation and maintenance of equipment 8,878 9,497 9,718 

26.0 - Supplies and materials 351 278 324 

31.0 - Equipment 7,187 1,928 6,798 

32.0 - Land and structures 5 0 0 

Total Non-Personnel $75,611 $78,302 $128,090 

Total Obligations $124,559 $133,343 $196,539 

 

Full-time Equivalents (FTE) 265 303 383 

Amounts reflect actual and anticipated obligations of annually appropriated resources and reimbursables. 
FinCEN - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

FINANCIAL CRIMES ENFORCEMENT NETWORK 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Financial Crimes Enforcement 

Network, including hire of passenger motor vehicles; travel and 

training expenses of non-Federal and foreign government 

personnel to attend meetings and training concerned with 

domestic and foreign financial intelligence activities, law 

enforcement, and financial regulation; services authorized by 5 

U.S.C. 3109; not to exceed [$12,000]$45,000 for official 

reception and representation expenses; and for assistance to 

Federal law enforcement agencies, with or without 

reimbursement, [$126,963,000]$190,539,000 of which not to 

exceed [$34,335,000]$94,600,000 shall remain available until 

September 30, [2023]2024 for information technology and to 

implement Division F of the William M. (Mac) Thornberry 

National Defense Authorization Act for Fiscal Year 2021 

(Public Law 116-283). (Consolidated Appropriations Act, 2021, 

Public Law 116-260) 

Changes to the 

appropriations language 

represent the additional 

amount for necessary 

expenses of the Financial 

Crimes Enforcement 

Network for the 

implementation of 

Division F of the William 

M. (Mac) Thornberry 

National Defense 

Authorization Act for 

Fiscal Year 2021 (Public 

Law 116-283).

E – Legislative Proposals 

FinCEN has no legislative proposals. 
FinCEN - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. FinCEN will publish a component plan that aligns 

bureau activities and priorities to the Department’s by early 2022. 

In FY 2020, FinCEN has had several noteworthy accomplishments highlighted below: 

Modernize, Streamline, and Simplify Regulatory Authorities: FinCEN made significant 

progress with respect to advancing regulatory initiatives impacting the AML framework this 

year. 

 FinCEN issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking comment on 

the AML program effectiveness in order to provide financial institutions its greater flexibility 

in the allocation of resources and enhance the effectiveness and efficiency of AML programs. 

 FinCEN issued two Notices of Proposed Rulemaking (NPRM) related to virtual currency and 

to proposed reductions in the recordkeeping requirements for cross-border funds transmittals. 

FinCEN also issued a final rule to require customer identification program, AML program, 

and beneficial ownership requirements for banks lacking a federal functional regulator. 

 FinCEN drafted and coordinated numerous significant guidance documents: (1) Politically 

Exposed Persons (PEP) statement (August 21), (2) FinCEN Enforcement of the BSA (August 

18, (3) FAQs Regarding Customer Due Diligence Requirements for Covered Financial 

Institutions (August 3), (4) Guidance Regarding Due Diligence Requirements under the BSA 

for Hemp-Related Business Customers (June 29), (5) Clarification of Requirements for 

Providing Financial Services to Hemp-related Businesses (December 3, 2019), and (6) Joint 

Statement of FinCEN, SEC, and CFTC on Activities Involving Digital Assets (October 11, 

2019); and (7) a new Fact Sheet providing clarification on FinCEN’s information sharing 

program under Section 314(b) of the USA PATRIOT Act.. 

 Published another three advisories associated with the result of the Financial Action Task 

Force decisions on countries with problematic AML/CFT regimes (July 14, 2020, March 26, 

2020, and November 12, 2019). 

 The results of the multi-year BSA Value Study, which provided the valuable insights into the 

use and value of BSA reporting (including a quantification of the estimated annual value to 

American public welfare of BSA data), was initially shared at the May 2020 BSAAG 

Plenary. 

COVID 19: FinCEN took a whole of agency approach to tackling the COVID-19 pandemic and 

illicit finance threats that it generated. Among other things, FinCEN: 

 Issued Notices to financial institutions—one on March 16, one on April 3, and another on 

May 18—advising them to remain alert to fraudulent, COVID-19 related transactions, and 
FinCEN - 10 

providing instructions on BSA filing requirements. Most recently, FinCEN issued a notice 

on December 28, to alert financial institutions about the potential for fraud, ransomware 

attacks, or similar types of criminal activity related to COVID-19 vaccines and their 

distribution. 

 Published three advisories related to COVID-19 medical fraud (May 18), imposter scams 

(July 7), and cyber-enabled crime (July 30), and defrauding of the unemployment insurance 

system (and reissued each one in Spanish) and one Alert related to fraud conducted through a 

hack of Twitter accounts (July 16). Issued Frequently Asked Questions in connection with 

the Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection 

Program (PPP), to clarify the applicability of beneficial ownership information collection 

requirements to PPP loans. 

 Responded to approximately 750 incoming queries related to the implementation of the 

CARES Act and its intersection with the BSA. 

 FinCEN quickly expanded its Rapid Response Program, which assists law enforcement in the 

recovery of funds stolen via fraud and business email compromise to include requests related 

to COVID-19. Since the beginning of the pandemic, FinCEN has supported several requests 

from federal, state, and international law enforcement agencies, aiding in the successful 

recovery of almost $325 million stolen in COVID-19 related fraud by illicit actors around the 

world. 

 Continued to host Innovation Hours meetings with Financial Technology, Regulatory 

Technology, and other firms creating innovative solutions to AML/CFT challenges, which 

FinCEN is using to enhance our national security through the promotion of responsible 

financial services innovation that furthers the purposes of the Bank Secrecy Act (BSA). 

FinCEN held ten monthly sessions during FY 2020 (of which five were held virtually in light 

of the pandemic) and one special regional event in New York in partnership with the Office 

of the Comptroller of the Currency in November 2019. 

Expand Supervision over Non-bank Financial Institutions (NBFIs):

 Led or participated in three examinations of NBFIs. 

 Conducted the first FinCEN-only examination of compliance with a Geographical Targeting 

Order, including the development of attendant policies and procedures (this also represented 

FinCEN's first examination of a title insurance company). 

Enhance Systems and Analytical Capabilities:

 Deployed new search capabilities targeted at transaction data and visualization capabilities 

on BSA reports information and transaction data. 

Expand Special Measures Efforts:

 In October 2019, FinCEN found Iran to be a jurisdiction of primary money laundering 

concern under Section 311 of the USA PATRIOT Act and issued a regulation prohibiting the 

opening or maintaining of correspondent accounts in the United States for, or on behalf of, 

Iranian financial institutions, and the use of foreign financial institutions’ correspondent 
FinCEN - 11 

accounts at covered U.S. financial institutions to process transactions involving Iranian 

financial institutions.

 On August 10, 2020, FinCEN withdrew the 2005 Notice of Finding and repealed the 2007 

Final Rule against Banco Delta Asia, S.A.R.L., Delta Asia Group Ltd. imposing Special 

Measure 5 under Section 311 of the USA PATRIOT Act. 

 FinCEN also prepared, researched and issued nine new special collection requests and one 

renewal (demand letters, foreign financial agency regulations, and/or geographic targeting 

orders) on major illicit finance issues around the world. 

Financial Intelligence:

 Developed at least 58 tactical and strategic intelligence products for law enforcement and 

other interagency partners that track the illicit financial flows associated with cybercrime and 

cyber-enabled threats. 

 Published nine products to FinCEN’s Secure Information Sharing System portal for industry 

and law enforcement, containing more than 23,000 unique cyber indicators derived from 

BSA data. 

 Produced six strategic or tactical Intelligence Assessments, nine Network Analyses, and eight 

Investigative Memos profiling terrorist threats. 

 Produced monthly and weekly assessments of terrorism financing trends and reports 

supporting specific law enforcement investigations. 

Expand Threat and Information Sharing:

 Hosted two virtual FinCEN Exchange events to enhance information sharing with and 

provide feedback to financial institutions: a November 2020 Exchange focused on 

ransomware detection and reporting, emerging trends and typologies, and recovery of victim 

assets and a March 2021 Exchange focused on providing trends and statistics regarding lowdollar, voluntarily-filed Suspicious Activity Reports. 

 Led various Egmont Group projects, to include a project focused on the role of financial 

intelligence units in detecting human trafficking illicit flows through the misuse of virtual 

assets and a webinar focused on virtual assets and the role of financial intelligence units, law 

enforcement, and prosecutors. 

 In addition to expanding the Rapid Response Program (RRP) as mentioned above to assist in 

the recovery of COVID-19 related fraud, FinCEN launched two pilot programs to handle all 

RRP referrals regardless of the crime or monetary threshold and on domestic wire transfers 

related to business email compromise. From FY20 to the present, the RRP processed over 

1150 referrals, involving over $867 million in allegedly fraudulently stolen funds and 

assisting in the recovery of over $525 million. 

FinCEN’s FY 2021 and FY 2022 Priorities include: 

 Timely and effectively implementing the AMLA/CTA, including: 1) the design and 

development of the beneficial ownership information technology system, 2) the statutorily 

mandated beneficial ownership rulemakings under the CTA, and 3) approximately 40 

additional regulatory and other requirements under the AMLA, to include additional 

rulemakings, assessments, and guidance documents; periodic Congressional reporting; and 

numerous other provisions requiring coordination, collaboration with and feedback to law 
FinCEN - 12 

enforcement and financial institutions, among other things. FinCEN seeks the resources for 

the personnel and technology needed to meet these significant and impactful statutory 

provisions. 

 Updating FinCEN’s mission and priorities in the context of a post-pandemic economic 

recovery, rising domestic violent extremism, AMLA/CTA implementation, interference from 

foreign state actors, and a new Administration. This includes an emphasis on advancing the 

innovative strength of the U.S. financial system, financial inclusion, and countering abuse by 

malign state actors and domestic terrorists, as well as corporate and political corruption that 

undermine the integrity and opportunity of the financial system, beyond the prior, post-9/11 

emphasis on foreign terrorists. FinCEN also was prescient in seeking to develop cyber and 

cryptocurrency capabilities for the past few years despite resource limitations, but threats 

related to those issues have grown faster than our resourcing (people and technology) and the 

demand from Treasury and the National Security Council, so those need to be addressed 

deliberately. 

 Filling FinCEN’s vacancies, continue training and developing our workforce and leadership 

teams, and continue to improve our technology. 
FinCEN - 13 

B – Budget and Performance by Budget Activity 

2.1.1 – BSA Administration and Analysis Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $112,979 $115,003 $115,003 $117,800 $126,000 $126,963 $190,539 

Reimbursable Resources $1,721 $2,526 $2,198 $1,771 $1,613 $6,000 $6,000 

Budget Activity Total $114,700 $117,529 $117,201 $119,571 $127,613 $132,963 $196,539 

Full-time Equivalents (FTE) 279 275 281 273 265 303 383 

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan. The FY 2016 - FY 2020 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees. 

Workload 

Output/Activity 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Estimate Estimate Estimate 

Number of SARs filed 2,316,550 2,401,896 2,537,225 2,698,841 3,039,421 2,779,806 2,863,200 2,949,096 

Number of total BSA 

reports filed 19,244,824 19,322,891 20,393,947 20,755,285 20,051,834 21,170,391 21,593,799 22,025,674 

Number of BSA users 10,833 11,452 11,739 12,801 13,047 

13,185 

 

13,581 

 

13,852 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Domestic 

Law Enforcement and 

Foreign FIUs who Assert 

Analytic Products Used 

Led to Detection and 

Deterrence of Illicit 

Activity 

95% 92% 95% 92% 97% 90% 90% 90% 

Percentage of Domestic 

Law Enforcement and 

Regulators Who Assert 

Queried BSA Data Led 

to Detection and 

Deterrence of Illicit 

Activity 

83% 86% 85% 92% 90% 88% 89% 90% 

Percentage of Users 

Satisfied with FinCEN 

Information Sharing 

Systems 

80% 87% 86% 89% 88% 84% 85% 85% 

BSA Administration and Analysis Budget and Performance 

($190,539,000 from direct appropriations, $6,000,000 from reimbursable sources)

FinCEN is a bureau in the U.S. Department of the Treasury. The Director of FinCEN reports to 

the Under Secretary for the Office of Terrorism and Financial Intelligence (TFI). FinCEN serves 

two primary roles in the national security apparatus: 1) administrator and primary regulator of 

the BSA, and 2) Financial Intelligence Unit for the United States. In carrying out its mission, 

FinCEN has numerous statutory areas of responsibility: 

 Developing and issuing regulations under the BSA; 

 Developing and issuing regulations pursuant to the CTA, including the development of the 

information technology system for beneficial ownership data; 

 Enforcing compliance with the BSA in partnership with law enforcement and other 

regulatory partners; 
FinCEN - 14 

 Serving as the U.S. Financial Intelligence Unit (FIU) and maintaining a network of 

information sharing with FIUs in 164 partner countries; 

 Receiving millions of new financial reports each year; 

 Securing and maintaining a database of over 300 million reports; 

 Analyzing and disseminating financial intelligence to federal, state, and local law 

enforcement, federal and state regulators, foreign FIUs, and industry; and 

 Bringing together the disparate interests of law enforcement, FIUs, regulatory partners, and 

industry. 

Description of Performance: 

FinCEN conducts four annual surveys of the BSA user-facing systems, information sharing tools 

and to assess the value of FinCEN’s data and analysis. The results provide valuable feedback on 

FinCEN’s performance safeguarding the financial system from illicit use, combatting money 

laundering, and promoting national security. 

The first performance measure is the percentage of domestic law enforcement and foreign FIUs 

who assert analytic products led to the detection and deterrence of illicit activity. This 

performance measure tracks what the analytics products are intended to do, i.e., be useful to a 

wide range of customers and have impact, such as identifying new leads or provide previously 

unknown information. In FY 2020, 97 percent found the analytic products and research had 

impact on the investigations, meeting the target of 90 percent or above. FinCEN was able to 

achieve this high level of performance by continuously improving processes to increase and 

rapidly disseminate intelligence reports to a wider audience, maintaining the high quality of its 

reporting through stringent review processes, and covering issues and topics that meet the 

operational and intelligence demands of its domestic and international stakeholders. For 

example, in FY 2020, FinCEN integrated the dissemination function into the Intelligence 

Division, which streamlined the dissemination process and improved communications between 

analysts, operations support, and customers. FinCEN also increased dissemination of its 

domestic intelligence products by increasing the number of products posted on the FinCEN 

Portal and on FinCEN’s public website and by highlighting certain reports on the main page of 

the Portal. This process resulted in greater and more informative feedback from customers. 

Also, by reducing the average response time for completing these requests by 14 days, and by 

working more closely with U.S. law enforcement and Treasury components to resolve 

deconfliction issues, FinCEN has been able respond to international requests at a faster rate. In 

FY 2021 and FY 2022, the target is set at 90 percent and above. 

Additionally, FinCEN monitors the percentage of domestic law enforcement and regulators who 

assert that queried BSA data led to the detection and deterrence of illicit activity. The survey 

looks at the value of FinCEN data, such as whether the data provided unknown information; 

supplemented or expanded known information; verified information; helped identify new leads; 

opened a new investigation or examination; supported an existing investigation or examination; 

or, provided information for an investigative or examination report. In FY 2020, FinCEN 

surpassed its target of 88 percent with 90 percent asserting the queried BSA data led the 

detection and deterrence of illicit activity. FinCEN achieved this performance by expanding its 

FinCEN Portal and Query training efforts and supplementing that training by posting useful, 

mission-oriented material on FinCEN Portal. In FY 2021, FinCEN will continue to expand its 
FinCEN - 15 

training efforts and content to provide the FinCEN Portal and FinCEN Query user community 

with the information they need to successfully enhance their investigative efforts. In FY 2021, 

the target is set at 89 percent and in FY 2022 at 90 percent. 

The final performance measure is based on survey responses and represents user satisfaction 

with the BSA E-Filing System, FinCEN Query, and the Egmont Secure Web (ESW). Starting 

with industry, FinCEN collects and maintains BSA reports filed by financial institutions and 

other filers. In turn, FinCEN provides authorized users (including Treasury and TFI) access to a 

query system containing 15 years of BSA data. FinCEN also provides foreign FIUs in the 

Egmont Group with a secure system for exchanging financial intelligence to combat money 

laundering and terrorist financing. This measure is meaningful because the technology allows 

authorized persons to access BSA information more readily and better enables them to conduct 

investigations more efficiently and effectively. In FY 2020, FinCEN exceeded its target of 84 

percent with 88 percent of the users satisfied with information sharing systems. FinCEN 

attributes the increase to specific customer service support provided to the Egmont Group with 

tasks, such as improving the content management organization and how users access much of the 

content within the ESW. FinCEN recently completed a technology refresh of ESW and is 

targeting a refresh of the FinCEN Portal and Query applications in FY 2021. These efforts will 

make significant updates to the underlying technologies and bring about some enhanced 

capabilities to the user community for the Portal/Query Applications. Since we anticipate 

somewhat of a learning curve associated with these updates, the targets are set at 85 percent for 

FY 2021 and FY 2022. 

C – Evidence-Building Activity 

The BSA Value Project provided FinCEN with a methodology and initial calculation of the value 

of BSA reporting. The Project information and final results (1) informed and helped measure the 

potential impact of proposed regulatory reform actions, including regulatory or compliance 

changes; (2) established a greater public understanding of how BSA reporting is used; (3) 

supported the development of more targeted feedback to financial institutions on the use and 

value of their reporting; (4) identified additional measures or actions that FinCEN and other 

stakeholders can take to improve the tracking and calculation of BSA reporting value; and (5) 

identified actions that can enhance the underlying value and use of BSA reporting. 

FinCEN also conducts research for its guidance and regulations. FinCEN worked closely with 

its Congressional, Main Treasury, and interagency partners on the AMLA/CTA legislation 

passed as part of the FY 2021 NDAA which made sweeping, positive changes to the AML 

system, including the creation of a beneficial ownership registry. Implementation of this 

legislation will occur over several years. 

The table below describes FinCEN’s major evidence-building activities and corresponding 

resources. Additionally, refer to the Executive Summary for a discussion of Treasury-wide 

evidence-building functions. 
FinCEN - 16 

Type of 

Evidence 

Building 

Activity 

Major Activities and Planned 

Projects

Resource Types Use 

Evaluation 

Collection and 

analysis of data 

to assess 

effectiveness and 

efficiency of 

programs, 

policies, or 

procedures

Estimated share 

of all EvidenceBuilding 

Activities:

 20 %

Major activities: 

 Implementation of the Anti-Money 

Laundering (AML) Act of 2020, 

including the Corporate 

Transparency Act through the 

issuance of guidance and regulations 

required by the legislation, as well as 

create a functional beneficial 

ownership information system. 

 Modernize, Streamline, and Simplify 

Regulatory Authorities 

 Review of Rapid Response Program 

(RRP) requests, responses, recovery 

rates, and other data to determine 

effectiveness and efficiency of 

program, and potential trends. 

 23 PD FTEs in 

FY 2020, Series 

0301 

 SOD 1 FTE in 

FY 2021, Series 

0301 and 

approximately 3 

firm, fixedprice 

contractors. 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 

management 

processes 

☒ By external 

partners 

(government) 

☒ By external 

partners (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) FY21 and FY22 projects: 

 Implement the AML Act of 2020, 

including the Corporate 

Transparency Act through the 

issuance of guidance and regulations 

required by the legislation 

 Modernize, Streamline, and Simplify 

Regulatory Authorities 

 Review of RRP requests, responses, 

recovery rates, and other data to 

determine effectiveness and 

efficiency of program, and potential 

trends. 

Research 

Modeling or 

other systematic 

use of data to 

explore emerging 

issues or 

potential 

scenarios to 

generate new 

knowledge

Estimated share 

of all EvidenceBuilding 

Activities:

 20 %

Major activities: 

 Advisory support research 

 Analyze data filed with FinCEN 

pursuant to the Bank Secrecy Act 

(BSA) to support law enforcement 

and other customers to combat 

money laundering and other forms of 

illicit finance. 

 Perform BSA-related research in 

support of the Treasury 

Department’s review of applications 

submitted to the Committee on 

Foreign Investment in the United 

States (CFIUS). 

 Perform BSA-related research to 

support FinCEN’s role as Financial 

 23 PD FTEs in 

FY 2020 Series 

0301 

 9 SOD FTEs in 

FY2020 Series 

0301 and 

approx. 8 firm, 

fixed-price 

contractors 

 83 ID FTE in 

FY 2020, Series 

0132 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 

management 

processes 

☒ By external 

partners 

(government) 

☒ By external 

partners (nongovernment) 
FinCEN - 17 

Type of 

Evidence 

Building 

Activity 

Major Activities and Planned 

Projects

Resource Types Use 

Intelligence Unit of the United 

States. 

 Perform BSA-related research to 

support the FinCEN Exchange 

public-private partnership to enhance 

information sharing. 

 Perform open source and 

commercial database research to 

explore emerging geopolitical issues 

and foreign FIU developments to 

inform decision making related to 

Egmont exchange activity. 



☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Issue advisories as necessary or 

appropriate. 

 Develop and host FinCEN 

Exchanges as appropriate. 

 Research and evaluate sensitive 

Egmont exchanges. 

 Create BSA foreign country fact 

sheets to assist with engagement and 

operational activity. 

Analysis 

Routine and 

frequent use of 

data that 

produces insights 

for decision 

making and 

program 

management

Estimated share 

of all EvidenceBuilding 

Activities:

 30 %

Major activities: 

 Performance Measurement 

 BSA data analysis 

 Support law enforcement 

GPRA 

Performance 

Measurement: 

 1 MD FTE, 

Series 0343 

BSA data 

analysis: 

 83 ID FTE in 

FY 2020, Series 

0132 

 2 SOD FTEs in 

FY 2020, series 

0301 and 

approx. 8 firm, 

fixed-price; 76 

other 

contractors 

 6 TD FTE FY 

2020, Series 

2210 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 

management 

processes 

☒ By external 

partners 

(government) 

☒ By external 

partners (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Increase Intelligence Capacity (FY 

2021) 

 Enhance Systems and Analytical 

Capabilities (FY 2021) 

 Expand Threat and Information 

Sharing (FY 2021) 

 Detect and mitigate money 

laundering vulnerabilities. 

 Support law enforcement 
FinCEN - 18 

Type of 

Evidence 

Building 

Activity 

Major Activities and Planned 

Projects

Resource Types Use 

Statistics 

Collection, 

compilation, and 

processing of 

data for 

describing or 

estimating 

characteristics or 

insights 

concerning 

groups

Estimated share 

of all EvidenceBuilding 

Activities:

 30 %

Major activities: 

 Regulatory impact analyses for 

purposes of the Paperwork 

Reduction Act and to implement 

Executive Order 12866 (1993). 

 Compile data and related analysis in 

connection with publishing the SAR 

Activity Reviews mandated by the 

Anti-Money Laundering Act of 

2020. 

 Compile data and related analysis to 

determine effectiveness, efficiency, 

and potential trends regarding the 

RRP. 

 Compile statistics and create reports 

to support the FinCEN Exchange 

public-private partnership and to 

provide feedback to financial 

institutions and regulators as 

required by the AML Act of 2020. 

 23 PD FTEs in 

FY 2020 Series 

0301 

 9 SOD FTEs in 

FY2020 Series 

0301, 

approximately 8 

firm, fixedprice 

contractors 

 83 ID FTE in 

FY 2020, Series 

0132 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 

management 

processes 

☒ By external 

partners 

(government) 

☒ By external 

partners (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Regulatory impact analyses for 

purposes of the Paperwork 

Reduction Act and to implement 

Executive Order 12866 (1993). 

These will need to be done when 

FinCEN issues regulations to 

implement the AML Act, and to 

renew OMB control numbers. 

 Compile data and related analysis to 

determine effectiveness and 

efficiency of RRP and to detect

potential BEC or fraud trends.

 Create BSA foreign country fact 

sheets to assist with engagement and 

operational activity. 

 Provide feedback and improve 

coordination with impacted financial 

institutions and regulators, as 

required by the AML Act of 2020. 
FinCEN - 19 

Section III – Additional Information 

A – Summary of Capital Investments 

As the administrator of the BSA, FinCEN receives valuable information reported and collected 

under BSA requirements, which totaled approximately 20 million filings in FY 2020. To 

successfully fulfill its mission, FinCEN relies on secure, advanced IT to manage the collection, 

processing, storage, and dissemination of BSA information that contributes to the soundness and 

confidence in America’s financial system. On January 1, 2021, Congress passed the National 

Defense Authorization Act (NDAA), which includes the Corporate Transparency Act (CTA). 

The CTA dictates that companies disclose beneficial ownership information to FinCEN. As a 

result, FinCEN, has expanded its IT investment portfolio to include the resources necessary 

securely collect, process, store, and disseminate beneficial ownership information. 

 

FinCEN’s IT strategy already takes into account the growing need for financial institutions to 

meet obligations as efficiently as possible, while ensuring that FinCEN and law enforcement 

agencies receive accurate, timely, and reliable BSA and beneficial ownership information to 

track money trails, identify money laundering, and unravel terrorist financing networks. 

FinCEN’s IT strategy also focuses on the critical need to improve the quality and accessibility of 

its data and increase responsiveness to stakeholders by maintaining and building upon flexible 

and innovative technical solutions. Beginning in FY2022, FinCEN is increasing its IT portfolio 

by approximately $29M annually to support FinCEN’s current mission architecture and to begin 

development, support, and maintenance for the beneficial ownership requirements of the CTA. 

This increase is required to fully fund FinCEN’s mission IT platform, which is the foundational 

architecture for the CTA beneficial ownership system. To timely and effectively implement these 

new and additional requirements, FinCEN estimates spending $64M in initial development costs 

with estimated obligations of roughly $7M in FY2021, $37M in FY2022, and $20M in FY2023. 

Within those amounts, FinCEN estimates beneficial ownership-specific spending to be $33M in 

the initial development costs with estimated obligations of roughly $4M in FY2021, $23M in 

FY2022, and $6M in FY2023. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


 

Department of the Treasury 

Alcohol and Tobacco Tax and 

Trade Bureau 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
TTB - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2 – Budget Adjustments Table ................................................................................................. 5

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

2.1.1 – Collect the Revenue Resources and Measures .............................................................. 10

Collect the Revenue Budget and Performance ......................................................................... 11

2.1.2 – Protect the Public Resources and Measures .................................................................. 16

Protect the Public Budget and Performance ............................................................................. 17

C – Changes in Performance Measures .................................................................................... 23

D– Evidence-Building Activity ................................................................................................ 23

Section III – Additional Information ........................................................................................ 26

A – Summary of Capital Investments ....................................................................................... 26

 
TTB - 3 

Section I – Budget Request 

A – Mission Statement 

To collect the taxes on alcohol, tobacco, firearms, and ammunition; protect the consumer by 

ensuring the integrity of alcohol products; ensure only qualified businesses enter the alcohol and 

tobacco industries; and prevent unfair and unlawful market activity for alcohol and tobacco 

products. 

B – Summary of the Request 

Supporting the nation’s economic vitality is at the core of the work performed by the Alcohol 

and Tobacco Tax and Trade Bureau (TTB). The bureau’s role in permitting, regulating, and 

taxing the alcohol, tobacco, and firearms industries facilitates a compliant and fair marketplace 

for those engaged in the manufacture and trade of these commodities, and ensures that the 

Federal government has the resources needed to fund national priorities. In FY 2020, TTB 

collected approximately $20 billion in excise taxes from the alcohol, tobacco, firearms, and 

ammunition industries. 

Many U.S. businesses experienced significant financial hardships due to the pandemic, including 

many of the small breweries, wineries, and distilleries that comprise the majority of TTB 

taxpayers. At the FY 2022 funding level, and in support of the Administration’s pandemic 

recovery and economic growth priorities, TTB plans to focus on timely service levels and 

facilitating voluntary compliance by simplifying tax and regulatory requirements, modernizing 

its online filing systems, and issuing clear and timely industry guidance. 

Complex or overly burdensome regulatory requirements do not serve the interests of taxpayers or 

the government. In FY 2022, TTB plans to pursue three major regulatory reform efforts in 

permitting, tax, and alcohol beverage labeling to consolidate, clarify, or simplify requirements 

and, where possible, minimize filing frequency. The revised requirements will ease applicant 

burden and make it easier for industry members to voluntarily comply. At the same time, TTB 

plans to tailor the requirements to improve data quality and better detect risk to direct its 

enforcement efforts. 

At the FY 2022 funding level, TTB will also prioritize improvements to its online filing systems 

as part of its IT modernization strategy to develop an integrated online experience for all tax and 

regulatory transactions with TTB. By improving the ease and usability of its online platforms, 

TTB aims to increase electronic submissions, improve timely filings, and support taxpayer 

compliance. Reducing paper submissions also supports “green” filing practices in line with the 

Administration’s climate change agenda. 

TTB will also continue to focus on providing clear and consistent industry guidance to facilitate 

the submission of compliant filings. Omissions and errors on permit and alcohol label 

applications create inefficiencies for TTB and delays in service to industry. Undue delays in 

service can be a barrier to industry expansion and ongoing product innovation that fuel the 

economy. Further, to support these industries as they rebound, TTB plans to use compliance data 

to target and tailor its guidance, industry outreach, and enforcement activities, ensuring that 

businesses have the information they need to comply and are operating on a level playing field. 
TTB - 4 

Additionally, TTB is working with Treasury on options to administer statutory changes to the 

import refund program included in the Taxpayer Certainty and Disaster Tax Relief Act of 2020. 

The law made permanent most Craft Beverage Modernization Act (CBMA) provisions of the 

Tax Cuts and Jobs Act of 2017 with several amendments, including transferring responsibility 

for administering certain provisions related to imported alcohol from U.S. Customs and Border 

Protection (CBP) to Treasury after December 31, 2022. The law requires that importers submit 

refund claims to Treasury to receive the reduced CBMA tax rates and credits as opposed to 

taking them at the time of entry. TTB and Treasury are still assessing the overall impact, 

including the resources, personnel, and information technology systems needed to implement 

and administer the import claims program. A report detailing Treasury’s plans to implement and 

administer the refund program starting in 2023 will be submitted to Congress and made publicly 

available in June 2021 as required by P.L. 116-260. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to 

FY 2022 

Appropriated Resources Operating Plan1 Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Collect the Revenue 206 $57,513 222 $57,526 222 $60,761 0.0% 5.6% 

Protect the Public 256 $62,087 265 $66,811 265 $70,569 0.0% 5.6% 

Subtotal New Appropriated Resources 462 $119,600 487 $124,337 487 $131,330 0.0% 5.6% 

Other Resources 

Reimbursable and Offsetting Collections2 11 $6,744 12 $7,977 12 $7,977 0.0% 0.0% 

Unobligated Balances from Prior Years3

 22 $4,577 21 $4,696 21 $4,680 0.0% -0.3% 

Transfers In/Out4

 0 $349 0 $350 0 $0 NA -100.0% 

Subtotal Other Resources 33 $11,670 33 $13,023 33 $12,657 0.0% -2.8% 

Total Budgetary Resources 495 $131,270 520 $137,360 520 $143,987 0.0% 4.8% 

1/ FY 2020 New Appropriated Resources by Budget Activity reflect levels appropriated in P.L. 116-93, the Consolidated Appropriations Act of 

2020. FY 2020 Full-time Equivalents (FTE) and FY 2020 Other Resources reflect actuals. 

2/ Includes reimbursements from the Treasury Executive Office of Asset Forfeiture (TEOAF) Mandatory Fund, Community Development

Financial Institution (CDFI) Fund, and Treasury Departmental Offices (DO), and offsetting collections from Puerto Rico cover-over program. 

3/ All years include carryover unobligated balances from prior two-year set aside funding for trade practice enforcement and education as well 

as recoveries of 50 percent in unobligated balances from prior one-year funding. 

4/ Actual obligations (FY 2020) and approved allocation (FY 2021) from TEOAF Secretary's Enforcement Fund transfer. 
TTB - 5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

Alcohol and Tobacco Tax and Trade Bureau FTE Amount 

FY 2021 Operating Plan 508 $124,337 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $3,885 

Pay Annualization (1.0% average pay raise) 0 $196 

Pay Raise (2.7% average pay raise) 0 $1,774 

FERS Contribution Increase 0 $995 

Non-Pay 0 $920 

Subtotal Changes to Base 0 $3,885 

FY 2022 Current Services 508 $128,222 

Program Changes: 

Program Increases: 0 $3,108 

MyTTB IT System Modernization 0 $2,500 

Electric Vehicles and Associated Infrastructure 0 $608 

FY 2022 President's Budget Request 508 $131,330 

C – Budget Increases and Decreases Description 

Maintaining Current Level (MCLs)........................................... +$3,885,000 / +0 FTE 

Pay Annualization (1.0%) +$196,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$1,774,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$995,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$920,000 / +0 FTE 

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

equipment. 

Program Increases................................................................. +$3,108,000 / +0 FTE

MyTTB IT System Modernization +$2,500,000 / +0 FTE 

TTB will continue to invest in IT system modernization to transform the industry member 

service experience. The desired end-state, known as MyTTB, will provide a personalized “onestop shop” to help industry members efficiently conduct all business transactions online. This 

initiative would transform the industry member experience with TTB incrementally through the 

development and delivery of functional modules to provide a seamless and consistent experience 

across all permitting, tax, and alcohol labeling interactions. MyTTB would also facilitate 

improved data integration and data quality across TTB programs and systems, enabling TTB to 

better detect noncompliance and fraud, validate application data, automate workflows, and 

increase data-driven decision making. 
TTB - 6 

Electric Vehicles and Associated Infrastructure +$608,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home 

and Abroad,” the U.S. Department of the Treasury joins in the Administration’s priority to 

develop a comprehensive plan to create good jobs and stimulate clean energy industries by 

revitalizing the Federal Government’s sustainability efforts. This includes Treasury’s 

commitment to use all available procurement authorities to augment its Department-wide fleet 

management program with a continued focus on the leasing of electric vehicles (EV) and 

purchasing, installing, and maintaining its essential infrastructure. The requested resources will 

help Treasury comply with the requirements of E.O. 14008 and reduce the carbon footprint of 

emissions into the atmosphere by acquiring an updated fleet of zero-emissions vehicles that can 

support mission operations. 

For FY 2022, TTB requests $608,000 to fund the conversion of its fleet to EV. Of that money, 

approximately $50,000 will be allocated to the purchase, installation, maintenance, and/or 

upgrade of infrastructure required to maintain an EV fleet management program, including 

charging stations to support its future EV fleet. Currently, TTB has a total of 21 vehicles in its 

fleet, none of which are EVs. 

 
TTB - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations* 

Estimated 

Obligations* 

Estimated 

Obligations* 

11.1 - Full-time permanent 55,418 58,541 60,112 

11.5 - Other personnel compensation 953 1,005 1,006 

11.5 - Overtime 423 584 669 

11.9 - Personnel Compensation (Total) 56,794 60,130 61,787 

12.0 - Personnel benefits 19,660 21,573 22,986 

13.0 - Benefits for former personnel 0 5 5 

Total Personnel and Compensation Benefits $76,454 $81,708 $84,778 

21.0 - Travel and transportation of persons1 767 1,344 2,364 

22.0 - Transportation of things 23 30 32 

23.1 - Rental payments to GSA 4,070 4,342 4,425 

23.3 - Communications, utilities, and miscellaneous charges 894 1,300 1,325 

24.0 - Printing and reproduction 153 315 321 

25.1 - Advisory and assistance services 13,829 14,082 15,736 

25.2 - Other services from non-Federal sources 14,390 13,533 14,486 

25.3 - Other goods and services from Federal sources 8,750 9,388 9,883 

25.4 - Operation and maintenance of facilities 2 22 22 

25.7 - Operation and maintenance of equipment 3,302 2,595 2,639 

26.0 - Supplies and materials 380 375 386 

31.0 - Equipment 3,189 3,194 2,890 

32.0 - Land and structures 49 0 0 

Total Non-Personnel $49,798 $50,520 $54,509 

Total Obligations2 $126,252 $132,228 $139,287 

 

Full-time Equivalents (FTE)3 495 520 520 

*Amounts reflect actual and anticipated obligations from all fund sources including annual appropriated resources, carryover balances, 

reimbursables, offsetting collections, and transfers. 

1/ The FY 2022 Request for BOC 21.0 includes $608 thousand for leasing of electric vehicles through GSA. 

2/ FY 2020 reflects actual obligations totaling $126.3 million, of which $119.5 million was from direct resources (new 

appropriations, carryover from prior years, and a TEOAF transfer) and $6.7 million was from reimbursable resources/offsetting 

collections. FY 2021 reflects anticipated obligations totaling $132.2 million, of which $124.5 million is from direct resources

(new appropriations and carryover from prior years) and $7.7 million is from reimbursable resources/offsetting collections. 

FY 2022 reflects anticipated obligations totaling $139.3 million, of which $131.6 million is from direct resources (new 

appropriations and carryover from prior years) and $7.7 million is from reimbursable resources/offsetting collections. 

3/ FY 2020 FTE reflects actual total FTE of 495, of which 484 FTE were from direct resources and 11 FTE were from 

reimbursable resources/offsetting collections. FY 2021 reflects anticipated total FTE of 520, of which 508 FTE are anticipated 

from direct resources and 12 FTE are anticipated from reimbursable resources/offsetting collections. FY 2022 reflects 

anticipated total FTE of 520, of which 508 FTE are anticipated from direct resources and 12 FTE are anticipated from 

reimbursable resources/offsetting collections. 

 
TTB - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of carrying out section 1111 of the 

Homeland Security Act of 2002, including hire of passenger motor 

vehicles, [$124,337,000]$131,330,000; of which $5,000,000 shall 

remain available until September 30, 2023; of which not to exceed 

$6,000 shall be available for official reception and representation 

expenses; and of which not to exceed $50,000 shall be available for 

cooperative research and development programs for laboratory 

services; and provision of laboratory assistance to State and local 

agencies with or without reimbursement[: Provided, That of the 

amount appropriated under this heading, $5,000,000 shall be for the 

costs of accelerating the processing of formula and label 

applications: Provided further, That of the amount appropriated 

under this heading, $5,000,000, to remain available until September 

30, 2022, shall be for the costs associated with enforcement of and 

education regarding the trade practice provisions of the Federal 

Alcohol Administration Act (27 U.S.C. 201 et seq.)] (Department 

of the Treasury Appropriations Act, 2021.)

The 2022 Budget 

proposes $5M in two-year 

funding to allow greater 

flexibility to use funds for 

all FAA Act/IRC 

enforcement activities that 

promote a level playing 

field for industry 

members. 

E – Legislative Proposals 

TTB has no legislative proposals. 
TTB - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act (GPRAMA)

of 2010, Treasury is currently developing the FY 2022 – 2026 Departmental Strategic Plan. The 

Strategic Plan is scheduled for publication in 2022. The Annual Performance Plan will be 

updated in the FY 2023 President’s Budget to reflect new departmental strategic goals and 

objectives. TTB will publish a component plan that aligns bureau activities and priorities to the 

Department’s by the fall of 2022. 

TTB is responsible for administering and enforcing the sections of the Internal Revenue Code of 

1986 associated with the collection of excise taxes on alcohol, tobacco, firearms, and 

ammunition, and the Federal Alcohol Administration Act, which provides for the regulation of 

the alcohol beverage industry for the protection of U.S. consumers. TTB generally administers 

its jurisdiction according to five strategic goals that support U.S. economic growth and stability: 

1) Business Qualification; 2) Labeling Modernization; 3) Tax Compliance; 4) Cross-Border Tax 

Risk; and 5) Workforce Readiness. TTB’s strategic goal of Workforce Readiness underpins 

TTB’s performance across all of its goals and objectives. 

TTB’s strategic goals to improve Tax Compliance and address Cross-Border Tax Risk ensure 

that the Federal government has the resources needed to fund national priorities through fair and 

effective administration and enforcement of tax laws. The FY 2022 funding level continues the 

investment in a multi-year IT system modernization effort, leveraging technology to improve 

mission outcomes and reduce paper filings, consistent with the Administration’s priorities. In 

addition, the industries TTB regulates have grown significantly in recent years, which presents 

workload and enforcement challenges, particularly in light of recent tax reform legislation. 

Funding is required to address outdated tax and regulatory systems to support efficient filing and 

processing. IT modernization also facilitates data analytics to timely detect fraud, tax evasion, 

and critical compliance issues that undermine a level playing field. 

TTB’s strategic goals to enhance Business Qualification and implement Labeling Modernization 

ensure that lawful U.S. alcohol businesses are competitive and thriving in the global 

marketplace. Timely service remains a priority for TTB and the businesses it regulates. As the 

demand for TTB services from these businesses continues to increase, TTB will aim, within 

FY 2022 resources, to sustain improved service times for permit, label, and formula approvals. 

TTB will combine IT system modernization efforts with streamlined application requirements 

and enhanced guidance to achieve its performance goals for customer service. These strategies 

will help TTB maintain timely service by increasing the number of first-time approvals and 

reducing delays caused by extensive back-and-forth with industry members in order to correct 

application errors. 
TTB - 10 

B – Budget and Performance by Budget Activity 

2.1.1 – Collect the Revenue Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $52,785 $53,560 $53,560 $58,856 $57,513 $57,526 $60,761 

Reimbursable & Offsetting Collections $3,143 $3,217 $3,923 $3,573 $4,131 $4,866 $4,866 

Unobligated Balances from Prior Years $170 $125 $112 $214 $98 $113 $125 

Transfers In/Out $0 $197 $902 $597 $349 $350 $0 

Budget Activity Total $56,098 $57,099 $58,497 $63,240 $62,091 $62,855 $65,752 

Full-time Equivalents (FTE) 234 223 212 213 211 227 227 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Amount of Revenue Collected 

Per Program Dollar ($) 414 406 369 339 380 I I I 

Voluntary Compliance from 

Large Taxpayers in Filing Tax 

Returns/Payments Timely (by 

taxpayer) (%) 1

- 60 69 69 DISC DISC N/A N/A 

Voluntary Compliance from 

Large Taxpayers in Filing 

Operational Reports Timely (by 

taxpayer) (%) 

- 66 74 76 DISC DISC N/A N/A 

Voluntary Compliance from 

Large Taxpayers - Overall (%) 90 90 90 91 91 95 95 95 

By Payment 99 99 99 99 99 - - - 

By Tax Return 81 79 82 84 84 - - - 

By Operational Report 82 82 82 83 83 - - - 

Electronically Filed Tax Returns 

- Pay.gov (%) 33 35 37 41 43 50 55 65 

Electronically Filed Operational 

Reports - Pay.gov (%) 39 40 42 46 50 50 55 65 

Key: DISC – Discontinued; I - Indicator 

1/ TTB revised its measure of taxpayer compliance for FY 2020, enabling more accurate and timely analysis of compliance trends by 

taxpayers; the new method also supports separate reporting of compliance rates by payments, tax returns, and operational reports. 
TTB - 11 

Collect the Revenue Budget and Performance 

($60,761,000 from new direct appropriations, $125,000 from unobligated balances from the 

prior year, and $4,866,000 from reimbursable sources): 

This budget activity includes all tax processing, verification, enforcement, and outreach efforts 

related to administering the Federal tax code for alcohol, tobacco, firearms, and ammunition 

products. TTB collects approximately $20 billion in Federal tax revenue annually from a tax 

base of nearly 35,000 businesses. TTB’s regulated taxpayers include distilleries, breweries, and 

wineries, as well as manufacturers and importers of tobacco and firearms. 

TTB extends the reach of its enforcement resources through advanced analytics and risk-based 

audits and investigations. To ensure a level playing field for those engaged in the trade of these 

regulated commodities, TTB also takes appropriate enforcement action to detect and address 

diversion activity to ensure all products sold in the marketplace are properly taxpaid. 

Other Resources.............................................................................. $4,991,000 

Unobligated Balances from the Prior Year.........................................................$125,000 

Offsetting Collections/Reimbursables.............................................................$4,866,000 

Other resources that fund this budget activity include unobligated balances from the prior year 

appropriation; reimbursement for the operating costs of TTB’s Puerto Rico field office, which 

are offset against the roughly $470 million in taxes collected on the alcohol beverage products 

that are manufactured in Puerto Rico and imported to the United States; reimbursement from 

CDFI for IT services provided by TTB; and funding from the TEOAF Mandatory Fund to cover 

investigative expenses, data systems, and training. 

Description of Performance: 

TTB combines measures and indicators to demonstrate the effectiveness and efficiency 

with which TTB operates its tax administration function, including through facilitating 

voluntary compliance as well as field enforcement efforts to address critical threats to 

Federal revenues. Through FY 2022, TTB plans to improve tax compliance by updating 

its tax filings, processes, and technologies; enhancing its capacity to timely identify and 

address non-compliance through analytics and other detection tools; and continuing to 

improve taxpayer education and outreach. 

The Amount of Revenue Collected per Program Dollar indicator uses annual collections 

figures and the actual expenditures and obligations for collection activities to quantify the 

efficiency of the TTB tax collection program. In FY 2020, TTB achieved a return on 

investment of $380 for every program dollar spent on collection activities. 

Revenue from the alcohol, tobacco, and firearms and ammunition industries increased yearto-year, with alcohol collections up three percent and firearms and ammunition excise tax 

revenues up 17 percent compared to FY 2019. Tobacco revenues have steadily declined in 

line with shifts in consumption patterns, product manufacturing, and trade. In total, revenue 

collections are up approximately one percent compared to FY 2019. 
TTB - 12 

At the same time, TTB’s tax administration and enforcement costs decreased, as TTB 

significantly curtailed in-person outreach and enforcement activities following the outbreak of 

COVID-19. TTB antitipates returning to a more robust in-person outreach and enforcement 

posture in FY 2021, guided by direction from the Administration and public health officials. 

Going forward, TTB will continue to monitor its return on investment for its Collect the 

Revenue activities as a key indicator; however, results will depend on several external factors, 

including the long-term effects of the craft beverage modernization provisions and the 

duration of the COVID-19 pandemic. 

Fostering voluntary compliance among taxpayers is a primary tax administration strategy for 

TTB. The Percent of Voluntary Compliance from Large Taxpayers is a key performance 

measure that shows the rate of compliance by large taxpayers (i.e., those that pay more than 

$50,000 in annual taxes) in voluntarily filing their required tax returns, operational reports, 

and payments on or before the scheduled due date. In FY 2020, TTB revised this measure 

based on a new scoring method to better reflect risk by filing type and revenue exposure. 

With this update, TTB maintained a comprehensive picture of compliance by taxpayer, but 

improved the bureau’s ability to rate and prioritize taxpayers based on relative risk to ensure 

TTB pursues the most serious patterns of non-compliance. 

To ensure adequate protection of Federal tax revenue, TTB established a high standard for 

its largest taxpayers, with a targeted filing compliance rate of 95 percent. In FY 2020, TTB 

achieved an overall compliance rate of 91 percent from its large taxpayers in meeting all tax 

filing requirements. Payment compliance rates remained high, at over 99 percent, indicating 

that the majority of reported liabilities are paid on time. Compliance rates for tax returns and 

operational reports were 84 percent and 83 percent, respectively. Although below target, 

these rates held constant with FY 2019, even with disruptions to TTB and industry 

operations caused by COVID-19. 

 

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Collections (in Millions)

Alcohol and Tobacco Excise Tax Collections

Alcohol Tobacco

$50

$150

$250

$350

$450

$550

$650

$750

$850

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Collections (in Millions)

Firearms andAmmunition Excise Tax Collections

FAET

Dollars in Thousands

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Alcohol 7,596,587 $ 7,849,426 $ 7,851,953 $ 7,924,951 $ 7,997,467 $ 8,075,476 $ 8,103,714 $ 7,877,214 $ 7,865,036 $ 8,088,717 $ 

Tobacco 15,515,073 $ 15,015,830 $ 14,321,017 $ 13,553,508 $ 13,623,229 $ 13,274,371 $ 12,966,317 $ 12,050,283 $ 11,375,038 $ 11,239,189 $ 

Firearms 344,262 $ 514,622 $ 764,675 $ 768,927 $ 638,518 $ 749,789 $ 761,630 $ 624,802 $ 567,330 $ 665,650 $ 

TOTAL $ 23,379,878 23,455,922 $ 22,937,645 $ 22,937,645 $ 22,259,214 $ 22,099,636 $ 21,831,661 $ 20,552,299 $ 19,807,404 $ 19,993,556 $ 
TTB - 13 

As the taxpayer universe grows, TTB faces resource challenges in maintaining industry 

compliance. In the last five years, the number of TTB taxpayers has increased nearly 60 

percent, which has created additional workload and enforcement challenges in maintaining 

industry compliance, particularly in light of recent tax reforms. This growth has cut across 

industry types, with the most significant increases in small businesses entering the alcohol 

industry. Over time, with limited resources, TTB outreach efforts to educate industry 

members on tax requirements have also decreased. More recently, TTB has also faced 

competing enforcement priorities, including efforts to address illicit trade practice activity in 

the alcohol industry. 

In FY 2020, to improve tax oversight, TTB piloted new analytics tools and internal 

procedures to address identified non-compliance. TTB created dashboard views of taxpayer 

compliance scores, including summary and detailed information about each compliance 

factor (i.e., late/missing returns, late/missing reports, late payments, and underpayments). 

Based on these scores, TTB tested and validated streamlined procedures for reconciling 

taxpayer accounts and issuing assessments. At the same time, TTB established and validated 

new risk criteria for taxpayer referrals for field audits to address serious non-compliance 

issues that undermine the level playing field. These policy and process improvements proved 

effective, with TTB assessing approximately $60 million in delinquent taxes in FY 2020. 

While these assessments were necessary to protect revenue, at the same time, TTB also 

provided additional guidance to industry on payment options in cases of financial distress 

caused by COVID-19. 

In fiscal years 2021-2022, improving compliance rates will remain a priority for TTB, as 

non-compliance undermines the level playing field, which is particularly critical for the 

small producers who comprise the majority of TTB taxpayers. Plans over the next year 

include continuing TTB’s risk-based reviews of taxpayer accounts, with a focus on 

improving analytics tools and expanding the pilot to include additional taxpayer segments. 

Over the next several years, TTB also plans to improve its education and outreach strategies 

to drive compliant behavior across TTB taxpayers. TTB will continue to actively manage its 

online guidance to provide current information on rules and requirements related to the craft 

beverage modernization provisions, which were permanently enacted in December 2020. 

TTB plans to use data on common compliance issues and trends to direct its annual outreach 

plan as well as to prioritize the development of new online tax guidance. 

 
TTB - 14 

TTB will also focus on improving tax compliance through developing the integrated, 

modernized IT systems supported by the FY 2022 budget request. Today, TTB relies on 

Pay.gov, a Bureau of the Fiscal Service system designed for government payments, for the 

electronic filing of tax returns and operational reports. TTB’s two measures to monitor the 

Electronic Filing Rates for Tax Returns and Operational Reports in Pay.gov support 

ongoing efforts to reduce paper filings. 

E-filing rates for tax returns and operational reports trended positively in FY 2020, but 

remain low compared to other TTB online systems. TTB ended the year at 43 percent of tax 

returns and 50 percent of operational reports submitted electronically. These low rates 

impede TTB’s ability to timely and effectively detect and address non-compliance and add 

costs to making the data available for routine reconciliation or advanced analytics. 

Additional Pay.gov promotion may improve e-filing rates in the near term to achieve its 

FY 2022 target of 65 percent, although more significant tax system modernization is likely 

required for TTB to achieve its long-term target of 80 percent. 

At the FY 2022 funding level, and as part of its IT modernization efforts, TTB intends to 

implement phased releases to its tax system, including developing a custom external 

interface for electronic tax filings and enhancing internal workflows to support TTB tax 

administration. In FY 2020, TTB deployed new document and imaging archives and an 

internal claims processing module to streamline internal processes and improve service times 

for issuing refunds on claims – filling a critical need for businesses potentially experiencing 

cash flow issues during the pandemic. TTB also initiated critical identity management work, 

laying the groundwork for a single industry member login across TTB’s online systems. 

Combined, these releases provide foundational infrastructure for the new integrated 

“MyTTB” system. 

Effective tax administration also requires modernized systems to facilitate TTB’s data-driven 

approach to monitoring compliance and timely identifying potential tax evasion – even more 

critical in light of recent tax reforms. At present, resource-intensive manual analysis and 

94%

90%

91%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Large Taxpayers Oveall Compliance Rate

Overall Compliance

TARGET: 95%

100% 99%

88%

81%

84%

87% 82%

83%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Large Taxpayers Oveall Compliance Rate

Payments Tax Returns Operational Reports

Large Taxpayer Filing Compliance Rate – Overall Large Taxpayer Filing Compliance Rate – By Filing Type

Overall compliance has trended down over the past decade – 

down from 94% in FY 13 to 91% today – requiring enhanced 

technology and guidance to support voluntary compliance by the 

increased number of taxpayers. 

Compliance with tax payment remains high; however, lower 

compliance scores for required tax returns and operational reports 

pose challenges to verifying the taxes paid. In addition to IT and 

guidance, TTB plans to issue rulemaking to streamline its tax 

requirements to minimize filing burden and support voluntary 

compliance. 
TTB - 15 

reconciliation of multiple reports and returns, in combination with other data sources, by 

specialists, auditors, and investigators are required to detect and address high-risk activity. 

In the years ahead, and at the requested funding level, TTB will enhance its tax systems and 

analytics tools to facilitate TTB’s use of its tax information, in combination with other data 

sources such as import and export data, to more effectively target its limited resources to 

suspected evasion schemes. This includes continued coordination CPB to support 

implementation of the import-related provisions of the tax reform legislation, which requires 

coordinating data and information sharing needs and identifying opportunities for joint 

enforcement to effectively combat revenue risks. 

Starting in January 2023, Treasury will be responsible for administering refund claims to 

importers eligible for reduced tax rates and credits under CBMA. Currently administered by 

CBP, the Taxpayer Certainty and Disaster Tax Relief Act of 2020 transferred this 

jurisdiction from CBP to Tresaury as of December 31, 2022. TTB is supporting Treasury in 

its analysis of options for implementing and administering refund claims to importers, with a 

proposed plan for implementation and adminstration due to Congress in June 2021. 

 

At the FY 2022 funding level, TTB also plans to continue pursuing regulatory remedies to 

improve tax administration and industry compliance. TTB recognizes that a number of current 

tax-related reporting requirements are burdensome on industry and, in some cases, require 

significant TTB resources to administer. To address these issues, and to ensure that TTB’s tax 

requirements are commensurate with revenue risk, TTB completed a broad-based review of its 

tax return and operational report filing requirements. 

The review generated recommendations to significantly streamline requirements to decrease 

both the amount of information collected as well as the frequency with which it is collected. 

The review also incorporated changes to TTB requirements to address new risks to 

underreporting introduced by recent tax reforms. The net effect of these revisions would 

substantially reduce reporting and filing burdens for industry. 

This multi-year initiative will require rulemaking to implement. TTB will work these 

efforts in tandem with the IT modernization efforts funded through FY 2022 to deliver 

these new requirements through a new tax system interface. As TTB initiates these efforts, 

the bureau will continuously evaluate and refine its regulatory and statutory options to find 

solutions to gain efficiencies for industry and TTB, while also boosting overall tax 

compliance. 
TTB - 16 

2.1.2 – Protect the Public Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $53,654 $57,879 $57,879 $60,744 $62,087 $66,811 $70,569 

Reimbursable & Offsetting Collections $2,577 $2,637 $2,366 $2,666 $2,613 $3,111 $3,111 

Unobligated Balances from Prior Years $170 $125 $4,166 $4,865 $4,479 $4,582 $4,554 

Transfers In/Out $0 $0 $87 $0 $0 $0 $0 

Budget Activity Total $56,401 $60,641 $64,498 $68,275 $69,179 $74,504 $78,235 

Full-time Equivalents (FTE) 246 265 273 282 284 293 293 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Permit Applications Processed within 

Service Standards 

(75 days) (%) 

32 48 71 58 84 85 85 85 

Alcohol Beverage Label and Formula 

Applications Processed within Service 

Standards (15 days) (%)1

80 62 84 48 83 85 85 85 

Initial Error Rate for Permit 

Applications 81 83 80 71 62 25 25 25 

Initial Error Rate for Label and 

Formula Applications 44 43 40 37 34 25 25 25 

Electronically Filed Permit 

Applications (%) 81 85 87 89 92 95 95 98 

Electronically Filed Label and 

Formula Applications (%) 97 98 98 99 99 I I I 

Customer Satisfaction Rate with eGov 

Systems - COLAs Online 74 82 81 77 80 80 80 80 

Customer Satisfaction Rate with eGov 

Systems - Permits Online 54 68 77 68 78 80 80 80 

Customer Satisfaction Rate with eGov 

Systems - Formulas Online2 58 70 79 70 73 80 80 80 

Key: I - Indicator 

1/ Service standards are set annually based on TTB analysis of submission volume, error rates, and resource levels. In FY 2016, the service 

standards were 30 days for labels and 45 days for formulas. In FY 2017, TTB set the service standards at 10 days for both labels and formulas, 

after receiving dedicated funding to support accelerated processing times. In FY 2018, following a spike in submission volume, TTB established 

new service standards of 15 days for both labels and formulas; these standards remain in effect through 2020. 

2/ Results represent beverage alcohol filers only (nonbeverage alcohol formula submissions are excluded). 
TTB - 17 

Protect the Public Budget and Performance 

($70,569,000 from new direct appropriations, $4,554,000 from unobligated balances from the 

prior year, and $3,111,000 from reimbursable sources): 

This budget activity funds the programs that ensure the integrity of the products and industry 

members in the marketplace; promote compliance with Federal laws and regulations by more 

than 106,000 businesses that TTB regulates; facilitate fair and lawful domestic and international 

trade in the alcohol and tobacco commodities; and provide full and accurate alcohol beverage 

product information to the public as a means to prevent consumer deception. 

Other Resources..................................................................................$7,665,000 

Unobligated Balances from the Prior Year...........................................................$4,554,000 

Offsetting Collections/Reimbursables..................................................................$3,111,000 

Other resources that support this budget activity include unobligated balances from the prior year 

appropriation; reimbursement for the operating costs of the TTB Puerto Rico field office, which 

are offset against the roughly $470 million in taxes collected on the alcohol beverage products 

that are manufactured in Puerto Rico and imported into the United States; reimbursement by 

CDFI for TTB’s IT services; and funding from the TEOAF Mandatory Fund to cover 

investigative expenses, data systems, and training. 

Description of Performance: 

TTB uses a combination of measures to monitor the degree to which the bureau is meeting 

its established service standards for permit, label, and formula applications; its effectiveness 

in reducing error rates on applications to address processing delays caused by incomplete or 

non-compliant submissions; and the level of satisfaction that industry members have with 

TTB’s online systems. TTB’s strategies to achieve its performance targets for these 

measures include a combination of improving internal processes, streamlining application 

requirements, modernizing its IT systems, and providing clearer guidance to industry 

members. 

TTB monitors its timeliness in processing permit applications through its measure of the 

Percentage of Permit Applications Processed within Service Standards. As businesses rely 

on accurate information related to TTB service delivery in their operational planning, this 

measure provides important data related to a key outcome for TTB and its stakeholders. 

In recent years, the volume of submissions, particularly in the more complex permit 

application types for alcohol beverage producers, has caused approval times to increase. 

Approval times spiked to an average of 122 days in FY 2016, and over 200 days for alcohol 

producer applications, delaying operations for these applicants, many of whom had already 

made significant upfront investments. Under a two-year Agency Priority Goal (APG) for 

FY 2018 – 2019, TTB and Treasury set a performance goal to improve the timeliness and 

consistency of service levels by reducing average processing times for new permit 

applications by 20 percent and achieving its service standard for 85 percent of applicants. 
TTB - 18 

TTB met one of its two APG targets in FY 2019, 

reducing average approval times to 75 days. 

However, TTB fell short of its second target to 

achieve the 75-day service standard for 85 

percent of permit applicants. In FY 2020, TTB 

retained this second prong of its priority goal 

and, by year-end, nearly achieved the target by 

meeting the standard for 84 percent of applicants. 

Average review times also decreased 

significantly, down to 42 days overall in 

FY 2020, with improvements across all 

application types. TTB attributes these gains to 

improved backlog management, which was 

facilitated by new permit application dashboards 

that display key metrics on the status and age of 

pending applications to support effective 

processing and management. 

TTB achieved these improvements even as the 

volume of permit applications spiked in 

FY 2020, driven by new and amended permits 

related to hand sanitizer production. TTB 

expedited its processing of over 2,400 permit applications, facilitating a shift in industry 

operations to hand sanitizer production following the Coronavirus Aid, Relief, and Economic 

Security (CARES) Act. Under the law, Congress provided certain flexibilities for tax-free 

withdrawals of spirits used to produce hand sanitizer in accordance with U.S. Food and Drug 

Administration guidance through the end of calendar year 2020. Recognizing the urgency, 

TTB approved many of these applications within one day. 

Sustaining these performance improvements in FY 2022 and beyond will require progress on 

several cross-cutting initiatives. At the requested funding level, TTB will focus on achieving 

its performance target through continued process improvements, IT system enhancements, 

and updates to its permit applications to simplify and streamline requirements. TTB will also 

continue to update its procedures to screen permit applicants, refining the risk criteria, tools, 

and procedures used to vet applicants for suitability to hold a Federal permit. TTB will use the 

results of its field investigations to inform its risk factors to improve the timeliness and 

effectiveness of its business qualification process. 

TTB measures the Initial Error Rate on Permit Applications, which tracks how many 

applications are submitted either incomplete or with errors, to develop directed strategies to 

maintain timely service by increasing the number of first-time permit application approvals. 

Errors increase the overall workload volume, requiring extensive back-and-forth with 

applicants to ensure the application is complete prior to TTB review and verification, which 

adds to the total processing time. Over the last five years, TTB’s ability to meet its service 

standard for new permit applications has been challenged by high error rates, which had 
TTB - 19 

consistently remained around 80 percent. Error rates are much higher for prospective 

breweries, wineries, and distilleries, which have more complex applications compared to 

non-manufacturers (i.e., wholesalers and importers). With recent system and guidance 

enhancements, as well as the permit application changes implemented to date, TTB has been 

able to reduce the high volume of applications submitted with errors. For FY 2020, the error 

rate on permit applications decreased to 62 percent, with improvements achieved across most 

application types. 

Further, to improve both error rates and approval times, TTB plans to implement 

recommendations from a review of its process for returning permit applications for 

corrections. In FY 2020, TTB integrated new tools and processes to streamline the 

application return process and standardize internal procedures. In fiscal years 2021 - 2022, 

to continue making progress toward its target of 25 percent, TTB plans to implement system 

enhancements to provide greater consistency in reviews and improve industry interactions 

with TTB. Presently, Permits Online, the online filing system for permit applications, does 

not allow an applicant to add or correct information on the application after it is submitted. 

This is instead handled via email exchange between the TTB specialist and applicant, 

creating processing inefficiencies and limiting effective oversight of in-process applications. 

As part of the MyTTB IT modernization initiative, TTB plans to enable incomplete 

applications to be returned and corrected within Permits Online, which should result in 

processing efficiencies, reduced error rates, and a better user experience for industry. 

According to its measure of the Percent of Electronically Filed Permit Applications, which 

tracks the electronic filing rate for new business applications, TTB received 92 percent of 

permit applications via Permits Online in FY 2020. TTB attributes this ongoing increase to 

TTB.gov improvements following the release of the redesigned Permits Online system in 

2018, which included improved guidance for first-time filers to help them navigate the 

application process. These system changes, combined with the online training available to 

industry, will support TTB in achieving its FY 2022 targets of increasing the electronic filing 

rate to 98 percent and reducing the initial error rate on permit applications to 25 percent. 

In alignment with its strategy to optimize its electronic filing systems, TTB measures 

Customer Satisfaction with the Permits Online eGov System through an e-mail survey to 

assess how satisfied businesses are in applying for a permit or registration through Permits 

Online. In FY 2020, system satisfaction rates increased 10 percent, from 68 percent in 

FY 2019 to 78 percent in FY 2020. Notably, satisfaction rebounded significantly with 

improved permit approval times later in the year, demonstrating a strong correlation between 

service levels and system satisfaction. Although still below the annual target of 80 percent, 

TTB expects the positive trend to continue in line with overall improvements in service levels, 

and as TTB initiates broader system modernization efforts supported by FY 2022 funding. 

TTB will also focus on improving the level of service provided to customers seeking live 

assistance with the permit application process via TTB’s call center. 

Broader changes to TTB’s application requirements, some of which require rulemaking, are 

underway and may need to be fully implemented before TTB can achieve and sustain its targeted 

performance levels for FY 2022, particularly as the alcohol beverage industry continues to 
TTB - 20 

recover from the pandemic. In FY 2020, TTB continued to make progress towards modernizing 

its permit applications. Using a multi-disciplinary team, TTB has reviewed its permit 

requirements and developed recommendations to modernize and streamline the applications 

based on TTB’s statutory responsibilities and enforcement needs. These proposals are being 

informed by industry input on Treasury regulations that can be eliminated, modified, or 

streamlined to reduce burdens. 

Certain changes in the Brewer’s Notice application have been implemented in advance of 

rulemaking, including the elimination of lease or proof of ownership agreements. The bureau 

intends to publish a series of rulemakings in fiscal years 2021 and 2022 for more significant 

modifications to TTB permit applications that should result in additional burden reductions for 

both industry and TTB. Further, simplifying and clarifying TTB’s regulatory requirements 

should also result in a reduced volume of initial permit applications submitted with errors, which 

would contribute to improved approval times. 

In FY 2020, TTB received approximately 183,000 label applications and 24,000 formula 

applications for new alcohol beverage product approvals. Given the importance of timely 

TTB approvals and the negative impact that delays have on U.S. businesses, TTB monitors 

its ability to provide timely and consistent service through its measure of the Percentage of 

Alcohol Beverage Label and Formula Applications Processed within Service Standards. 

TTB combines label and formula applications in this measure given the interdependent 

nature of these approvals. 

In the last five years, in line with industry expansion and product innovation, submission 

volume has increased nearly 15 percent for labels and nearly 70 percent for formulas. 

COVID-19 temporarily halted this growth in label applications, with volume down 8 

percent overall compared to FY 2019. This decline was driven by reductions in wine and 

malt beverage label applications, with a decrease of 11 percent in wine and 5 percent in malt 

beverages in FY 2020. Distilled spirits label applications, however, continued to increase, 

with another 4 percent growth over prior years, driven by innovation in the craft spirits 

sector. Formula submissions continued their growth trend, indicating continued industry 

innovation during the pandemic. Although all alcohol beverage commodities contributed to 

the increase in formula submissions, malt beverage submissions increased at the fastest rate, 

up over 40 percent compared to last year, due to the use of innovative ingredients and 

market trends such as flavored malt beverage products. 
TTB - 21 

In light of customer expectations, as well 

as ongoing program improvements 

supported by directed funding enacted in 

the FY 2020 budget to accelerate approval 

times, TTB maintained its service 

standards for beverage alcohol labels and 

formulas at 15 days in FY 2020. Despite 

increased submission volume, the 

formulation area achieved the targeted 

performance level, and ended the year at 

87 percent of formula applications meeting 

the 15‐day standard, exceeding the target 

of 85 percent. This was achieved through 

effective monitoring and management of 

the application backlog combined with 

strategic workforce management to 

efficiently deploy staff. By employing 

similar strategies, label performance nearly 

achieved the target in FY 2020 at 83 

percent. Performance significantly improved 

for both application types in the latter half 

of the fiscal year as TTB cleared backlogs 

while the overall label application volume 

decreased, with the vast majority of 

applications processed in 10 days or less. 

TTB expects the positive trends to continue 

through FY 2022 through continuous 

management of pending applications and 

strategic resource alignment. TTB plans to 

maintain its 15-day service standard for 

label and formula applications, and will 

work toward its fiscal years 2021 and 2022 

targets of meeting this standard for 85 

percent of applications through strategic initiatives to upgrade online systems and guidance, 

with particular focus on reducing application errors that increase total workload and 

challenge timely processing. 

Application errors are a key driver of label and formula processing times due to the 

additional review required for each resubmitted application. TTB relies on its measure of the 

Initial Error Rate of Label and Formula Applications to monitor error trends and evaluate 

the effect of system and guidance enhancements on first-time approvals. In FY 2020, 

approximately 34 percent of label and formula applications were submitted incomplete or 

with errors, falling short of the targeted performance level of 25 percent, although 

demonstrating year-to-year progress. 

TTB successfully reduced approval times in the latter half of 

FY 2020 in efforts to support industry members in 

maintaining operations during the COVID-19 pandemic. 

Commodity

% Meeting

Standard Median

% Meeting

Standard Median

DISTILLED SPIRITS 41% 19 75% 8

MALT BEVERAGE 46% 16 86% 6

WINE 91% 5 94% 3

Overall 74% 7 90% 4

Commodity

% Meeting

Standard Median

% Meeting

Standard Median

DISTILLED SPIRITS 80% 8 88% 5

MALT BEVERAGE 86% 7 95% 4

WINE 86% 7 91% 4

Overall 83% 7 91% 5

Completed Formula Application Statistics

Pre‐COVID

(10/01/19 ‐ 3/14/20)

Post‐COVID

(3/15/20 ‐ 9/30/20)

Completed Label Application Statistics

Pre‐COVID

(10/01/19 ‐ 3/14/20)

Post‐COVID

(3/15/20 ‐ 9/30/20)
TTB - 22 

In FY 2020, TTB continued to use a data-driven strategy to address the most frequent 

application errors, with the goal of increasing the number of applications that do not need to 

be returned for correction. This year, TTB made progress in issuing improved guidance on 

TTB.gov. This includes detailed examples of compliant label and formula submissions by 

commodity, as well as web-based tools to make it easier for industry members to determine if 

their products require TTB formula approval prior to filing a label. Going forward, TTB 

intends to further reduce error rates by increasing and integrating industry guidance available 

on TTB.gov and its online systems. 

In addition, TTB continued its initiative to modernize Federal alcohol beverage labeling 

regulations to reflect current TTB policy and modern industry practices. In FY 2020, TTB 

published a final rule as part of its multi-year labeling modernization rulemaking project. 

This final rule codified liberalizing proposals that received broad industry consensus. 

Subsequent phases planned for fiscal years 2021 and 2022 will address specific labeling and 

advertising proposals for each alcohol beverage commodity, as well as crosscutting labeling 

issues. TTB will also indicate issues the bureau intends to close or reserve for future 

rulemaking. Through rulemaking, as well as policy guidance, TTB is seeking to equip 

industry with the information needed to submit more complete and accurate label and 

formula applications. 

Sustaining service levels will also be supported through ongoing enhancements to TTB’s 

eGov systems. Over the last several years, TTB has deployed system enhancements to 

COLAs Online and Formulas Online, focusing its efforts on compliance validations and 

embedded help features to address frequent application errors. These system releases have 

targeted both application and label compliance errors and, in FY 2020, results indicate that 

the changes implemented to date have proven effective, with error rates down 4 percent 

overall for both application types compared to last year, with labels ending the year at 33 

percent (down from 37 percent) and formulas at 35 percent (down from 39 percent). 

To be successful in this strategy, TTB must maintain high rates of electronic filing for label and 

formula applications. According to its measure of the Percent of Electronically Filed Label and 

Formula Applications, TTB now receives 99 percent of applications via COLAs Online and 

Formulas Online, indicating that continued focus on system validations is warranted and will 

support performance goals in increasing accurate applications and accelerating approval times. 

Going forward, through its IT system modernization efforts funded in FY 2022, TTB plans to 

expand and improve system-based validations. These efforts include testing artificial intelligence 

techniques to detect text and image errors on label applications, with the goal of alerting users to 

certain types of errors prior to submitting an application. TTB will also continue to employ user 

testing and feedback to make iterative enhancements to COLAs Online and Formulas Online to 

reduce application errors. 

Through its measures of Customer Satisfaction with COLAs Online and Formulas Online, 

TTB monitors user satisfaction with the process of submitting an application through its 

eGov systems, collecting responses via e-mail survey to assess factors such as ease of access, 

guidance, and overall experience. In FY 2020, satisfaction rates increased from 77 percent to 

80 percent for COLAs Online users and 70 percent to 73 percent for Formulas Online users. 
TTB - 23 

TTB generally attributes these increases to reduced processing times and anticipates that 

performance will continue to improve through FY 2021 in line with timely service levels. 

Further, TTB expects that planned system improvements and regular review of survey 

feedback will help TTB to exceed its user satisfaction target of 80 percent and continue to 

attract users to its online systems to maintain electronic filing rates above its target of 95 

percent. 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

Voluntary Compliance from Large 

Taxpayers in Filing Tax 

Returns/Payments Timely (by 

taxpayer) 

Replaced by Voluntary Compliance from Large 

Taxpayers - Overall. TTB revised its measure of 

taxpayer compliance for FY 2020, enabling more 

accurate and timely analysis of compliance trends 

by taxpayers. The new method provides an overall 

compliance score based on late and missed tax 

filings, and also supports separate reporting of 

compliance rates by payments, tax returns, and 

operational reports. 

Voluntary Compliance from Large 

Taxpayers in Filing Operational 

Reports Timely (by taxpayer) 

See above. 

D– Evidence-Building Activity 

Type of 

EvidenceBuilding Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

Evaluation 

Collection and 

analysis of data to 

assess effectiveness 

and efficiency of 

programs, policies, 

or procedures

Estimated share of all 

Evidence-Building 

Activities: 

 15%

Major activities: 

 Requirements Analysis 

 Customer/User Experience 

(CX/UX) Research and Analysis 

 Customer Surveys 

 0301 – 

Miscellaneous 

Administration 

and Program 

 0340 – 

Program 

Manager 

 0343 – 

Management 

& Program 

Analyst 

 1530 – 

Statistics 

 1801 – 

General 

Inspection, 

Investigation, 

☒ For internal 

policy 

 decisionmaking 

☒ During 

internal 

 strategic 

management 

 processes 

☐ By external 

partners 

 (government) 

☐ By external 

partners 

 (nongovernment) 

FY21 and FY22 projects: 

 Permit Simplification: Internal 

evaluation of permit application 

requirements (Active) 

 Tax Simplification: Internal 

evaluation of tax filing 

requirements (tax returns/ 

operational reports) (Active) 

 MyTTB IT Modernization UX 

Testing: Collection of customer 

feedback on usability of new 
TTB - 24 

Type of 

EvidenceBuilding Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

system features prior to release 

(Active) 

 Customer Satisfaction Survey: 

Annual survey to collect data on 

industry demographics, 

priorities, and satisfaction 

(Active)

and 

Compliance 

 Analytics 

Contract 

☐ By 

unaffiliated 

 external 

researchers 

☐ Other 

(describe) 

Research 

Modeling or other 

systematic use of data 

to explore emerging 

issues or potential 

scenarios to generate 

new knowledge

Estimated share of all 

Evidence-Building 

Activities: 

 15%

Major activities: 

 Company/Taxpayer 

Relationships 

 Taxpayer Compliance 

 Alcohol Market Trends 

 0301 – 

Miscellaneous 

Administration 

and Program 

 0340 – 

Program 

Manager 

 0343 – 

Management 

& Program 

Analyst 

 1530 – 

Statistics 

 1801 – 

General 

Inspection, 

Investigation, 

and 

Compliance 

 Analytics 

Contract 

☒ For internal 

policy 

 decisionmaking 

☒ During 

internal 

 strategic 

management 

 processes 

☐ By external 

partners 

 (government) 

☐ By external 

partners 

 (nongovernment) 

☐ By 

unaffiliated 

 external 

researchers 

☐ Other 

(describe) 

FY21 and FY22 projects: 

 Controlled Groups: 

Compilation of data to identify 

controlled groups and other 

company relationships for tax 

administration and enforcement 

(Active) 

 Taxpayer Notice Redesign: 

Apply behavioral science to the 

design and issuance of taxpayer 

notices, starting with 

information sharing with the 

Internal Revenue Service 

(Active/Planned) 

 Alcohol Market Trends: Initial 

research into data sources for 

analysis of alcohol beverage 

industry trends based on market 

data (Planned) 

Analysis 

Routine and frequent 

use of data that 

produces insights for 

decision making and 

program 

management

Estimated share of all 

Evidence-Building 

Activities: 

 50%

Major activities: 

 Management Dashboards 

 Performance Measurement 

 Risk Assessment 

 Industry Guidance & Outreach 

 Workforce Analysis

 0301 – 

Miscellaneous 

Administration 

and Program 

 0340 – 

Program 

Manager 

 0343 – 

Management 

& Program 

Analyst 

 1530 – 

Statistics 

 1801 – 

General 

☒ For internal 

policy 

 decisionmaking 

☒ During 

internal 

 strategic 

management 

 processes 

☐ By external 

partners 

 (government) 

☐ By external 

partners 

FY21 and FY22 projects: 

 Permit Dashboard: Views of 

original and amended permit 

application backlog by type, 

age, and status (Active) 

 Tax Compliance Dashboard: 

View of TTB taxpayer 
TTB - 25 

Type of 

EvidenceBuilding Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

compliance scores for filing tax 

returns, operational reports, and 

payments (Active) 

 Executive Dashboards: Views 

of strategic performance 

measures and other key 

indicators that serve as the basis 

for internal strategic 

management meetings (Active) 

 Call Center Dashboard: View 

of call center performance 

measures (e.g., volume, 

handled, abandoned, call wait 

time, handle time) to support 

management decisions (Active) 

 Applicant Risk Review: 

Automated pre-screening of 

permit applicants based on risk 

criteria (Active) 

 TTB.gov Guidance: Prioritizing 

and developing new and 

updated web content based on 

high frequency application 

errors and/or compliance issues 

(Active) 

 Workforce Analysis: Ad hoc 

analyses of staffing levels and 

allocation based on workload 

volume and targeted service 

level scenarios (Active) 

Inspection, 

Investigation, 

and 

Compliance 

 Analytics 

Contract 

 (nongovernment) 

☐ By 

unaffiliated 

 external 

researchers 

☐ Other 

(describe) 

Statistics 

Collection, 

compilation, and 

processing of data for 

describing or 

estimating 

characteristics or 

insights concerning 

groups

Estimated share of all 

Evidence-Building 

Activities: 

 20%

Major activities: 

 Statistical Releases 

 Data Quality Assessment 

 0301 – 

Miscellaneous 

Administration 

and Program 

 0343 – 

Management 

& Program 

Analyst 

 1530 – 

Statistics 

 1801 – 

General 

Inspection, 

Investigation, 

and 

Compliance 

☒ For internal 

policy 

 decisionmaking 

☒ During 

internal 

 strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☒ By external 

partners 

 (nongovernment) 
TTB - 26 

Type of 

EvidenceBuilding Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

FY21 and FY22 projects: 

 Commodity Statistical Reports: 

Public data on production and 

trade of alcohol and tobacco 

products (Active) 

 Data Quality (DQ) Assessment: 

Collection and compilation of 

data quality issues in DQ 

Monitoring Tool by data 

characteristic, issue type, and 

priority level (Active) 

 Analytics 

Contract 

☒ By 

unaffiliated 

 external 

researchers 

☒ Other: Tax 

administration 

and 

enforcement 

Section III – Additional Information 

A – Summary of Capital Investments 

Information Technology 

TTB’s Strategic Plan establishes the vision and objectives for the bureau in the business context. 

TTB’s Information Technology (IT) Strategic Plan is a five-year plan based on its business 

strategy, which includes the bureau’s mission, vision, goals, and objectives from an IT 

perspective. This plan charts the course the bureau will follow in the coming years to develop 

and implement IT solutions that are aimed at streamlining the collection of data, leveraging web 

technologies, and continuing to make the internet the method of choice for the reporting and 

exchanging of information between businesses and TTB. By aligning business and technical 

strategy, TTB is able to leverage technology to enable the bureau to meet its objectives in the 

most efficient and cost-effective manner while identifying ways to minimize system redundancy. 

TTB has no major IT investments based on the OMB and the Department of Treasury criteria. 

Several non-major investments, however, directly support the mission, strategy, and day-to-day 

operations of the bureau. These include: 

TTB Tax System: This investment consists of several component applications that ensure fair 

and proper collection of revenue from the industry members for alcohol, tobacco, firearms, and 

ammunition excise taxes and compliance with excise tax laws and regulations. 

TTB Regulatory System: This investment includes applications that streamline the beverage 

and nonbeverage alcohol formula approval process and COLA issuance for tax and regulatory 

compliance. 

TTB General Support Services: This investment provides TTB users with the infrastructure 

applications necessary to conduct daily business. 

TTB Enterprise Architecture: This investment supports strategic management of IT operations 

(e.g., business process redesign efforts not part of an individual investment, enterprise 

architecture development, capital planning and investment control processes, procurement 
TTB - 27 

management, and IT policy development and implementation) and costs for Chief Information 

Officer functions. 

In addition to leveraging IT to support the mission, strategy, and day-to-day operations of the 

bureau, TTB supports and maintains strategy alignment with OMB and Treasury through 

enterprise-wide IT initiatives. These include Cyber Security; IT Infrastructure; Electronic 

Identity and Access Management (HSPD-12); Enterprise-wide Contracts and Services; and 

Program Metrics and Milestones. 

Scientific Equipment for Laboratories 

This investment will enable TTB’s chemists to continue to provide accurate and reproducible 

scientific data and laboratory results to support regulatory compliance, tax enforcement, tax 

classification, rulemaking, and investigations for both the alcohol and tobacco commodities. 

Laboratory instruments require periodic replacement, as they have finite lifecycles due to use and 

as advances in scientific technology render older instruments obsolete. Periodic replacement of 

the existing technologies and equipment is essential for TTB laboratories to remain state-of-theart and effective to support the bureau’s mission, strategy, and day-to-day operations. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Bureau of the Fiscal Service 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 

 
Fiscal - 2 

Table of Contents 

Section I – Budget Request........................................................................................................... 3

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

B – Summary of Request ............................................................................................................ 3

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

1.4 – Permanent, Indefinite Appropriations Table ...................................................................... 9

Section II – Annual Performance Plan and Report ................................................................. 10

A – Strategic Alignment ........................................................................................................... 10

B – Budget and Performance by Budget Activity .................................................................... 11

2.1.1 – Accounting and Reporting Resources and Measures .................................................... 11

Accounting and Reporting Budget and Performance ............................................................... 11

2.1.2 – Collections Resources and Measures ............................................................................ 13

Collections Budget and Performance ........................................................................................ 13

2.1.3 – Payments Resources and Measures .............................................................................. 14

Payments Budget and Performance .......................................................................................... 15

2.1.4 – Retail Securities Services Resources and Measures ..................................................... 17

Retail Securities Services Budget and Performance ................................................................. 17

2.1.5 – Wholesale Securities Services Resources and Measures .............................................. 19

Wholesale Securities Services Budget and Performance .......................................................... 19

2.1.6 – Debt Collection Resources and Measures ..................................................................... 21

Debt Collection Budget and Performance ................................................................................ 21

C – Changes in Performance Measures .................................................................................... 23

D– Evidence-Building Activity ................................................................................................ 23

Section III – Additional Information ........................................................................................ 28

A – Summary of Capital Investments ....................................................................................... 28

 

 
Fiscal - 3 

 

Section I – Budget Request 

A – Mission Statement 

To promote the financial integrity and operational efficiency of the Federal Government through 

exceptional accounting, financing, collections, payments, and shared services. 

B – Summary of Request 

The Bureau of the Fiscal Service (Fiscal Service) plays an integral role in the National Financial 

Critical Infrastructure (NFCI) of the entire Federal Government and touches the lives of nearly 

every American. Fiscal Service is guided by its enduring aspiration that the Government is an 

efficient steward of its financial resources; that financial information provided by the 

Government is accurate; and that financial interactions with the Government are inclusive, 

modern, seamless, and secure. 

The FY 2022 request for the Fiscal Service is $360.3 million. The Budget ensures the viability of 

the Government’s NFCI that finances Federal operations, collects revenue, disburses payments, 

and reports on the Government’s financial position. Because of Fiscal Service’s central role in 

government-wide financial operations, the Budget also supports Treasury’s leadership in 

transforming Federal financial management to become more efficient, more accurate and deliver 

better service to citizens. 

The Budget invests in business modernization, customer experience, increasing availability of 

data, expanding financial management solutions, innovation, operational integrity, and our 

workforce. These priorities will advance Fiscal Service’s vision to transform federal financial 

management and allow the Bureau to deliver critical financial operations to the American public. 

The Financial Management Quality Service Management Office (FM QSMO) is a key initiative 

that supports multiple goals in Treasury’s 10-year Vision for the Future of Federal Financial 

Management. This program is responsible for operating the Federal marketplace and making 

quality core financial service offerings available to all Federal agencies. FM QSMO seeks to 

partner with agency leaders, provide agencies with access to innovative and standardsbased financial management solutions, and deliver expert guidance that will advance 

government-wide financial management goals. 

 
Fiscal - 4 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Accounting and Reporting 355 $98,937 398 $96,472 417 $103,242 5% 7% 

Collections 148 $37,948 161 $41,109 165 $42,417 2% 3% 

Payments 487 $123,015 490 $123,190 501 $127,110 2% 3% 

Retail Securities Services 393 $58,403 406 $59,312 412 $61,200 1% 3% 

Wholesale Securities Services 116 $21,977 122 $25,486 122 $26,297 0% 3% 

Matured Unredeemed Debt 0 $25,000 0 $25,000 0 $0 N/A -100% 

Subtotal New Appropriated 

Resources 1499 $365,280 1577 $370,569 1617 $360,266 3% -3% 

Other Resources 

Reimbursable/Debt 358 $399,681 412 $402,000 412 $412,831 0% 3% 

Unobligated Balances from Prior 

Years 0 $92,000 0 $137,546 0 $150,000 N/A 9% 

Subtotal Other Resources 358 $491,681 412 $539,546 412 $562,831 0% 4% 

Total Budgetary Resources 1857 $856,961 1989 $910,115 2029 $923,097 2% 1% 

Note: FY 2020 Other Resources and Full-time Equivalents (FTE) reflect actuals. Table does not include the $78.7 million supplemental funding 

provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) in FY 2020 and the $23.2 million provided 

by the American Rescue Plan (ARP) (P.L. 117-2) in FY 2021. Additionally, unobligated balances do not include CARES and ARP. Other 

Resources does not include IRS reimbursements for EIP postage cost. 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 Operating Plan 1,577 $370,569 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $10,234 

Pay Annualization (1.0% average pay raise) 0 $557 

FERS Contribution Increase 0 $1,676 

Pay Raise (2.7% average pay raise) 0 $5,049 

Non-Pay 0 $2,952 

Non-Recurring Costs: 

Matured Unredeemed Debt 0 ($25,000) 

Other Adjustments: 

Annualization of Hires 38 $5,428 

Efficiency Savings: 

Non-Pay Decreases 0 ($5,428) 

Subtotal Changes to Base 38 ($14,766) 

FY 2022 Current Services 1,615 $355,803 

Program Changes: 

Program Increases: 

Quality Service Management Office 2 $3,700 

Electric Vehicles and Associated Infrastructure 0 $763 

Subtotal Program Changes 2 $4,463 

Total FY 2022 President's Budget 1,617 $360,266 
Fiscal - 5 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs)........................................ +$10,234,000 / +0 FTE

Pay Annualization (1.0%) +$557,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

FERS Contribution Increase +$1,676,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Pay Raise (2.7% in 2022) +$5,049,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

Non-Pay +$2,952,000 / +0 FTE 

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

equipment. 

Non-recurring Cost............................................................ -$25,000,000 / -0 FTE 

Matured Unredeemed Debt -$25,000,000 / -0 FTE 

United States Savings Bonds that have reached final maturity and stopped earning interest are 

considered Matured Unredeemed Debt (MUD). As of the end of FY 2020, the MUD balance 

had reached $27.5 billion. The Consolidated Appropriations Act, 2021, (P.L. 116-260) provided 

$25 million, available until expended, for the digitization of records of matured savings bonds 

that have not been redeemed. This adjustment removes the FY 2021 appropriation from the FY 

2022 base. 

Other Adjustments............................................................ +$5,428,000 / +38 FTE

Annualization of Hires +$5,428,000 / +38 FTE 

Funds are requested for annualization of salary and benefits for hires that occur during FY 2021. 

These hires support the bureau’s priorities and the staffing levels required to ensure effective 

operational activities. 

Efficiency Savings................................................................... -$5,428,000 / -0 FTE

Non-Pay Decreases -$5,428,000 / -0 FTE 

Anticipated savings from reduced non-pay programmatic requirements to align with operating 

levels. 

Program Increases................................................................. +$4,463,000 / +2 FTE 

Quality Service Management Office +$3,700,000 / +2 FTE 

This funding will support the Department’s implementation of the Financial Management 

Quality Service Management Office (FM QSMO). Federal agency financial systems face 

critical modernization needs, and opportunities exist for improving compliance with financial 

management standards, leveraging technology and shared solutions, and reducing lengthy 

deployment delays and cost overruns. By leveraging the FM QSMO’s Marketplace of 

core financial systems preconfigured with standards-based capabilities, agencies will share in the 

initial cost of modernizing a system as well as keep systems up to date by utilizing Marketplace 

providers. 
Fiscal - 6 

Increased funding will allow Treasury to continue establishment and implementation of the 

FM QSMO Marketplace of solutions and services which will help agencies meet their financial 

management needs and accomplish shared government-wide goals. During FY 2022, Treasury 

plans to stand-up the initial Marketplace for agencies to acquire core financial system solutions 

through a government-wide contract vehicle. It is envisioned that the Marketplace will also 

include other financial management solutions and services complementary to core financial 

systems as well as Treasury centralized services. In addition, the increased funding will enable 

the Treasury FM QSMO team to work with agencies to assess adoption readiness, plan for use of 

the Marketplace solutions and services, and provide the necessary support to ensure agency 

participation in the design of the Marketplace. 

Electric Vehicles and Associated Infrastructure +$763,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home 

and Abroad”, the U.S. Department of the Treasury joins in the Administration’s priority to 

develop a comprehensive plan to create good jobs and stimulate clean energy industries by 

revitalizing the Federal Government’s sustainability efforts. This includes Treasury’s 

commitment to use all available procurement authorities to augment its Departmentwide fleet 

management program with a continued focus on the leasing of electric vehicles (EV) and 

purchasing, installing, and maintaining essential infrastructure. The planned resources will help 

Treasury comply with the requirements set forth by E.O. 14008 and reduce the carbon footprint 

of emissions into the atmosphere by acquiring an updated fleet of zero-emissions vehicles that 

can support mission operations. 

For FY 2022, the Bureau of Fiscal Service (Fiscal Service) requests $763,000 to fund the 

eventual full conversion of its fleet to EV. Of that money, approximately $50,000 will be 

allocated to support the purchase, installation, maintenance, and/or upgrade of infrastructure 

required to maintain an EV fleet management program. It is expected that Fiscal Service will 

need two charging stations to support its future EV state. Currently, Fiscal Service has a total of 

29 vehicles in its fleet, of which two are EVs. 

 
Fiscal - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 181,357 198,853 208,133 

11.3 - Other than full-time permanent 239 170 177 

11.5 - Other personnel compensation 6,072 5,603 5,934 

11.9 - Personnel Compensation (Total) $187,668 $204,626 $214,244 

12.0 - Personnel benefits 67,423 74,944 80,041 

13.0 - Benefits for former personnel 0 0 0 

Total Personnel and Compensation Benefits $255,091 $279,569 $294,285 

21.0 - Travel and transportation of persons 974 1,346 1,559 

22.0 - Transportation of things 95 75 77 

23.1 - Rental payments to GSA 24,640 22,135 33,114 

23.2 - Rental payments to others 6 5 5 

23.3 - Communication, utilities, and misc charges 59,780 88,937 65,023 

24.0 - Printing and reproduction 122 109 111 

25.1 - Advisory and assistance services 67,812 28,253 21,976 

25.2 - Other services from non-Federal sources 18,133 28,413 37,254 

25.3 - Other goods and services from Federal sources 305,965 341,745 314,015 

25.4 - Operation and maintenance of facilities 2,260 2,894 2,952 

25.7 - Operation and maintenance of equip 10,915 9,358 8,067 

26.0 - Supplies and materials 5,042 4,805 4,535 

31.0 - Equipment 4,980 4,714 3,113 

32.0 - Land and structures 424 10 10 

43.0 - Interest and dividends 38 0 0 

Total Non-Personnel $501,187 $532,801 $491,811 

New Budgetary Resources $756,278 $812,370 $786,097 

 

FTE 1,857 1,989 2,029 

Note: Table does not include obligations from direct supplemental funding provided under the Coronavirus Aid, Relief, Economic Security 

(CARES) Act (P.L. 116-136) for $12.6 million in FY 2020 and $17.5 million in FY 2021, and the American Rescue Plan (ARP) (P.L.117-2) 

for $19.1 million in FY 2021 and $4.1M in FY 2022. FY 2021 includes $9.5 million in MUD estimated obligations. FY 2022 includes $13.0 

million in MUD estimated obligations. 

 
Fiscal - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

BUREAU OF THE FISCAL SERVICE 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of operations of the Bureau of the Fiscal 

Service, [$345,569,000] $360,266,000; of which not to exceed 

$8,000,000, to remain available until September 30, [2023] 2024, 

is for information systems modernization initiatives; and of which 

$5,000 shall be available for official reception and representation 

expenses. 

In addition, $165,000, to be derived from the Oil Spill Liability 

Trust Fund to reimburse administrative and personnel expenses 

for financial management of the Fund, as authorized by section 

1012 of Public Law 101-380. (Department of the Treasury 

Appropriations Act, 2021.)

Federal Reserve Bank Permanent, Indefinite Appropriation 

The Federal Reserve Banks (FRBs) act as fiscal agents of the United States when directed by the 

Secretary of the Treasury in accordance with 12 U.S.C. § 391. Under this account, the FRBs 

support fiscal operations unrelated to the administration of the public debt and provide banking 

and financial services on behalf of the United States Treasury. Specifically, this account supports 

accounting and reporting, collections, payments, and debt collection programs. These, and other 

programs, are vital to the NFCI, Fiscal Service’s strategic goals, and the expansion of 

e-government efforts to reduce costs, improve accuracy and increase options available to citizens 

to conduct transactions with the Federal Government. Fiscal Service estimates that the cost of 

FRB services for FY 2022 will be approximately $659 million. 

Reimbursements to the Federal Reserve Banks 

Public Law (P.L.) 101-509, 104 Stat. 1389, 1394 (1990), established a permanent, indefinite 

appropriation to pay such sums as may be necessary to reimburse the FRBs for acting as fiscal 

agents. This account was further defined in FY 1992 to solely support those activities related to 

the administration of the public debt. Funding for FY 2022 is estimated at $180 million. 

Financial Agent Services Permanent, Indefinite Appropriation 

Congress has given the Secretary of the Treasury authority to deposit money in financial 

institutions and obtain banking and financial services by designating qualified financial 

institutions to act/serve as Financial Agents (FAs) of the United States. The services support 

many Fiscal Service programs, such as collections, payments, and debt collection. The services 

provided by the FAs are authorized under numerous statutes including, but not limited to, 12 

U.S.C. 90 and 265. Fiscal Service estimates the cost of FA services for FY 2022 will be 

approximately $881 million, which includes $1.3 million for Government Sponsored Enterprise 

– Mortgage Backed Securities administrative costs. 
Fiscal - 9 

Government Losses in Shipment 

P.L. 103-329 established a permanent, indefinite appropriation to pay such sums as necessary to 

make payments for the replacement (or value) of valuables lost, destroyed, or damaged during 

United States Government shipments. The Government Losses in Shipment Act (the Act) was 

enacted July 8, 1937 to dispense with the necessity for insurance by the Government against loss 

or damage to valuables in shipment and for other purposes. The Act was amended in 1943 to 

cover losses resulting from the redemption of savings bonds (for example, stolen bonds that were 

fraudulently negotiated even though the paying agent followed identification guidelines 

established by the Treasury). All Authority of the Treasury under the Act is delegated to the 

Fiscal Service Commissioner. In FY 2022, the funding estimated to support payments for the 

replacement of valuables is approximately $1.9 million. 

1.4 – Permanent, Indefinite Appropriations Table 

 

Permanent, Indefinite Appropriation FY 2020

Actual

FY 2021 

Estimated

FY 2022 

Request

Federal Reserve Bank1 $599,000 $646,000 $659,000

Reimbursements to the Federal Reserve Banks $147,000 $177,000 $180,000

Financial Agent Services1,2 $856,000 $864,000 $881,000

Government Losses in Shipment $2,204 $1,452 $1,909

Dollars in Thousands

1/ Approx $91M was reimbursed from other government agencies and deposited into the General Fund in 

2/ FY 2020 - FY 2022 includes $1 M per year for the Government Sponsored Enterprise - Mortgage Backed 

Securities administrative costs.

FY 2020.
Fiscal - 10 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In FY 2020, Fiscal Service collected over $4.24 trillion in revenue, issued more than 1.4 billion 

payments to over 120 million Americans, and conducted 447 auctions that sold $18.67 trillion in 

Treasury securities to finance the Federal Government. Fiscal Service accounted for the Nation’s 

$26.9 trillion public debt down to the penny, every day. 

In accordance with the Government Performance and Results Act Modernization Act (GPRAMA)

of 2010, the Department of the Treasury is currently developing the FY 2022 – 2026 

Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. Fiscal Service will publish a component plan that 

aligns bureau activities and priorities to the Department’s by Spring 2022. 

Fiscal Service continues its mission to promote the financial integrity and operational efficiency 

of the Federal Government through exceptional accounting, financing, collections, payments, 

and shared services. Fiscal Service is guided by the Future of Federal Financial Management 

Vision (FM Vision) which outlines three expectations citizens have for federal financial 

management which guide the work within Fiscal Service: 

 The Government is an efficient steward of its financial resources; 

 Financial information provided by the Government is accurate; and 

 Financial interactions with the Government are inclusive, modern, seamless, and secure. 

Fiscal Service is committed to providing it’s customers with innovative, modern financial 

management solutions. This includes providing a modern customer experience to the American 

public, leading the federal financial management community, and unlocking value for agency 

Chief Financial Officers (CFOs). 

To transform financial management, Fiscal Service is guided by its strategic vision to deliver 

operational excellence and business modernization, provide a modern customer experience, 

engage its diverse high-performing workforce, increase data integrity and transparency, and 

provide innovative financial management solutions to the financial management community. 

These transformations are more important than ever as Fiscal Service moves forward. 

Fiscal Service fulfills its mission and strategic vision through appropriated budget activities - 

Accounting and Reporting, Collections, Payments, Retail Securities Services, Wholesale 

Securities Services - and one mandatory budget activity - Debt Collection, which is funded 

through delinquent debt collection revenue. 

The following sections detail how specific budget activities support the strategic direction and 

illustrate FY 2020 performance accomplishments and FY 2021 and 2022 performance goals. 
Fiscal - 11 

B – Budget and Performance by Budget Activity 

2.1.1 – Accounting and Reporting Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $113,413 $114,829 $90,291 $94,104 $94,446 $96,472 $103,242 

Reimbursable Resources $24,155 $23,800 $18,923 $20,114 $21,205 $21,547 $26,365 

Budget Activity Total $137,568 $138,629 $109,214 $114,218 $115,651 $118,019 $129,607 

Full-time Equivalents (FTE) 425 381 400 373 355 398 417 

Note: The FY 2016 - FY 2020 appropriated resources represent actual obligations. 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

 Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Percentage of Government-wide 

Accounting Reports Issued Timely 

(%) 

100.0 100.0 100.0 99.6 100.0 99.5 99.5 99.5 

Accounting and Reporting Budget and Performance 

($103,242,000 from direct appropriations, $26,365,000 from reimbursable sources) 

Fiscal Service collects, analyzes, and publishes government-wide financial information, made 

available to both the public and private sectors, to provide transparency on the Government’s 

financial status. Fiscal Service is responsible for maintaining the Federal Government’s set of 

accounts and serves as the repository of information for the financial position of the United 

States Government. The Bureau closely monitors the Government’s monetary assets and 

liabilities through its oversight of central accounting and reporting systems. Fiscal Service 

oversight responsibilities include helping Federal agencies use uniform accounting and reporting 

standards and systems and assuring the continuous exchange of financial information between 

Federal agencies, OMB, and financial institutions. The Bureau also gathers and publishes 

government-wide financial information for use in establishing fiscal and debt management 

policies, as well as to allow the public and private sectors to monitor the Government's financial 

status. In FY 2020, Fiscal Service issued a total of 265 government-wide accounting reports. 

 

262 263 262 263 263 265 264 266

0

50

100

150

200

250

300

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Projected

FY 2022

Projected

Count of Government-wide Account Reports Issued
Fiscal - 12 

Description of Performance: 

In FY 2020, Fiscal Service continued its strong performance by issuing 100 percent of 

government-wide accounting reports on time. This is an improvement over FY 2019, where a 

one-time system error impacted the annual performance. Fiscal Service expects to meet its 

FY 2021 and FY 2022 performance targets by transforming the quality, effectiveness, and 

transparency of Federal financial management data; delivering value-added business process and 

system improvements; and expanding/enhancing relationships with stakeholders and customers. 

Other Accounting and Reporting performance accomplishments include the following: 

Financial Data Access and Use: In July 2020, Fiscal Service launched 

FiscalData.Treasury.gov, which provides the public with centralized access to Fiscal Service’s 

financial data through a modern user experience. Fiscal Data includes topics such as debt, 

interest rates, and revenue through an accessible, easy-to-follow, interactive website. 

Treasury also collaborated with OMB and other federal agencies to issue guidance on 

supplemental funding provided in response to COVID-19 and worked with federal agencies to 

report this information to the public on USAspending.gov. 

General Fund: GAO’s FY 2018 Schedules of the General Fund report for the Bureau of the 

Fiscal Service was published in May 2019 and identified opportunities to advance the 

auditability of the Schedules of the General Fund. In FY 2020, Fiscal Service implemented a 

comprehensive remediation plan to address these issues with the following actions: 1) 

implementing processes for validating the integrity of certain beginning balances; 2) developing 

an automated reconciliation to readily trace payment transactions; and 3) working diligently with 

the federal agency community to provide guidance to improve the accuracy of the Schedules. 

GAO has confirmed that the Fiscal Service successfully completed remediation activities to 

adequately address two of the three outstanding scope limitations from the FY 2018 audit. 

Additionally, GAO confirmed six of twelve financial audit recommendations were successfully 

addressed since the last audit cycle, along with successful closure of eight of seventeen 

information technology recommendations. 

Modernize and Streamline Federal Reporting and Audit Model: Federal agencies (and other 

entities) use the Government-wide Treasury Account Symbol Adjusted Trial Balance System 

(GTAS) to provide proprietary financial reporting information about budget execution to the 

Treasury. This information is used to compile the Financial Report of the U.S. Government. In 

FY 2020, Fiscal Service implemented key enhancements, including data automation to support 

the elimination of 40 agency closing packages for the U.S. Consolidated Financial Statements, 

and made progress in standardizing the Balance Sheet between the financial statement lines 

presented by agencies. 

In FY 2022, Accounting and Reporting will engage in projects and activities that improve data 

use and transparency, streamline, and improve debt management and modernize federal financial 

performance. The Debt Information Management System (DIMS) modernization effort will 

allow the Bureau to provide more accurate and timely reporting of the national debt. 
Fiscal - 13 

Additionally, timelines were established to move towards an improved intragovernmental 

invoicing system, improved auditing procedures, and advanced analytics. 

2.1.2 – Collections Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $37,394 $35,281 $38,338 $42,333 $38,976 $41,109 $42,417 

Reimbursable Resources $8,265 $7,028 $8,042 $7,804 $8,535 $8,248 $7,754 

Budget Activity Total $45,659 $42,309 $46,380 $50,137 $47,511 $49,357 $50,171 

Full-time Equivalents (FTE) 152 159 160 156 148 161 165 

Note: The FY 2016 - FY 2020 appropriated resources represent actual obligations. 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Percentage of Total Federal 

Government Receipts Settled 

Electronically (%) 

98.2 98.3 98.0 98.4 99.0 98.0 98.0 98.3 

Collections Budget and Performance 

($42,417,000 from direct appropriations, $7,754,000 from reimbursable sources)

The Collections budget activity supports the NFCI and Treasury by administering the world’s 

largest government funds collections system through a network of Fiscal and Financial Agents. 

Fiscal Service’s collections network supports a significant number of transactions and dollars 

collected, demonstrating the criticality of our program to the economy, the operations of the 

Government, and the daily lives of the public and businesses. 

In FY 2020, Fiscal Service collected over $4.24 trillion in federal revenue, such as individual 

and corporate income tax deposits, customs duties, fees for government services, fines, and 

loan repayments. Within the federal revenue collected, the Electronic Federal Tax Payment 

System (EFTPS) processed over 190 million transactions valued at nearly $3.03 trillion in tax 

revenue while Pay.gov processed nearly 152 million transactions worth nearly $202 billion. 

$3.98 $3.96 $4.09 $4.15 $4.26 $4.24 $4.25 $4.25

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Projected

FY 2022

Projected

Total Revenue Collected ($ Trillions)
Fiscal - 14 

Description of Performance: 

In FY 2020, Fiscal Service continued growth in electronic collections by electronically settling 

99.0 percent of all Federal Government receipts, in dollars, which exceeded the target of 98.0 

percent. The performance results were achieved because of our continuing efforts to move 

paper-based transactions to electronic alternatives (e.g., Pay.gov and eCommerce alternatives 

such as digital wallets), and a decline in non-electronic collections due to the pandemic. Fiscal 

Service expects to maintain the 98.0 percent target in FY 2021 by continuing to promote the 

use of electronic systems in the collections process and assisting agencies in converting 

collections from paper to electronic media, which supports the Administration’s climate 

priority. While the 99.0 percent rate was achieved in FY 2020, the target for FY 2021 will 

remain at 98.0 percent due to the uncertainty and potential impacts from the pandemic on 

FY 2021 collections. 

In FY 2020, Fiscal Service also continued efforts to streamline lockbox networks, which 

process paper-based payments and forms. The General Lockbox Network (GLN), which 

provides services to a variety of agencies, streamlined 65 cash flows and Fiscal Service reduced 

the GLN lockbox footprint from four sites managed by three financial agents, to two sites 

managed by a single financial agent. In FY 2022, the Fiscal plans to assess volume and policy 

impacts resulting from the pandemic and new climate policies to determine plans for its 

lockbox networks. Additionally, Fiscal Service has initiated the Transforming Tax Collections 

(T2C) initiative, a modernization effort which will transition to a new, modernized tax 

collection service that provides better customer experience, leverages available technologies to 

improve cybersecurity and fraud monitoring and detection, and enhances resiliency. 

2.1.3 – Payments Resources and Measures 

Dollars in Thousands 

   FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $127,943 $133,998 $131,160 $122,835 $136,678 $123,190 $127,110 

Reimbursable Resources $111,088 $111,464 $117,264 $113,313 $118,127 $123,880 $125,098 

Budget Activity Total $239,031 $245,462 $248,424 $236,148 $254,805 $247,070 $252,208 

Full-time Equivalents (FTE) 562 597 508 477 487 490 501 

Note: The FY 2016 - FY 2020 appropriated resources represent actual obligations. 

   FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Percentage of Treasury Payments 

Made Electronically (%) 94.9 95.1 95.4 95.6 96.0 95.8 96.1 96.4 

Count of Improper Payments 

Identified or Stopped (# in 

Thousands) 

33.7 21.4 20.3 22.4 22.8 20.5 21.5 22.5 

Dollar Amount of Improper 

Payments Identified or Stopped 

($ Millions) 

59.0 36.6 35.5 41.1 43.5 35.3 37.0 38.8 
Fiscal - 15 

Payments Budget and Performance 

($127,110,000 from direct appropriations, $125,098,000 from reimbursable sources)

The Fiscal Service Payments budget activity supports the NFCI and delivers Federal payments 

on behalf of more than 250 Federal entities through disbursement mechanisms such as paper 

checks, Electronic Fund Transfers (EFT), and benefit cards. The public relies on the Fiscal 

Service disbursement of payments, including programs such as Veterans’ Compensation and 

Pension, Social Security Benefits, Federal and Railroad Pensions, IRS tax refunds, and 

Supplemental Security Income (SSI). Fiscal Service continues to focus on promoting the use of 

electronic channels in the payment process and assisting agencies in converting payments from 

paper checks to EFTs and strives towards all-electronic disbursements to streamline processes, 

reduce cost of operations, and deliver payments and related services expeditiously to the 

American public. 

Fiscal Service continues to increase the percentage of federal payments which are Treasurydisbursed. In FY 2020, Fiscal Service disbursed 88 percent of all federal payments. 

In FY 2020, the Fiscal Service payments activity encountered unprecedented increases in 

workload in support of the CARES legislation, specifically the delivery of Economic Impact 

Payments (EIP) to the American public. In FY 2020, Fiscal Service securely disbursed 1.4 

billion payments totaling $5.4 trillion; of these totals, EIPs accounted for more than 160 million 

payments to individuals totaling more than $270 billion. During FY 2021, Fiscal Service issued 

147 million EIP2s and as of May 12, 2021 has issued 165 million EIP3s. In total, over 472 

million economic impact payments have been disbursed during FY 2020 and FY 2021. 

Description of Performance: 

In FY 2020 and FY 2021, Fiscal Service was critical to the rapid implementation of programs 

providing relief to American workers and families during the coronavirus pandemic. Fiscal 

Service’s use of modern, seamless, and secure electronic payment methods dramatically 

improved the speed and delivery of payments, including 472 million Economic Impact Payments 

(EIPs). In 2008, during the last major stimulus effort, it took more than two months to issue the 

first 800,000 stimulus payments to the American public. By comparison, in FY 2020, Fiscal 

Service disbursed more than 159 million EIPs within two months of the CARES Act being 

1.16 1.18 1.20 1.22 1.23

1.44

1.59

1.29

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Projected

FY 2022

Projected

Total Number of Payments Disbursed (# Billions)
Fiscal - 16 

signed into law. This included all eligible Americans for whom the IRS had the necessary 

information to make payments. In two subsequent rounds, Fiscal Service disbursed a majority of 

EIPs in approximately one month. In December 2020, Fiscal Service disbursed more than 113 

million electronic EIPs totaling $112.2 billion within two days of the signing of the 

legislation. For EIP3s, Fiscal Service disbursed more than 90 million electronic EIPs totaling 

$242.3 billion in less than 24 hours of the signing of the legislation. For all three rounds of EIPs, 

Fiscal Service leveraged the use of debit cards for a portion of EIPs that would have otherwise 

been issued via paper checks. To further facilitate delivery of payments, Fiscal Service also 

issued electronic EIPs using information from other agencies. 

While in the midst of supporting the CARES Act, Fiscal Service also continued advancing its 

planned actions within the Payments activity. One major initiative in this area is the Treasury 

FY 2020 – FY 2021 Agency Priority Goal (APG) to improve the public’s experience by 

increasing electronic payments and reducing paper checks. Excluding EIPs and Department of 

Education checks directly related to the pandemic, Treasury reduced the total number of paper 

checks issued by -3.7 million compared to FY 2019 levels. 

*Excludes EIPs and Department of Education checks directly related to the pandemic. 

In FY 2022, Fiscal Service plans to support the Administration’s climate priority and 

commitment to streamline the delivery of benefit payments by continuing to promote and 

increase the delivery of payments through EFT, with an emphasis on tax refunds, vendor 

payments, benefit payments, and other miscellaneous payments. Additionally, the Bureau plans 

to explore, develop, and deploy innovative, customer-driven electronic payment solutions. 

Fiscal Service also continues to grow the number of CFO Act agencies using and increase the 

dollar value of invoices processed through the Invoice Processing Platform (IPP). IPP is a 

secure, web-based service that automates government invoicing from purchase order through 

payment notification, resulting in reduced costs, faster payments, more accurate data, better 

cash management, and an improved customer experience. 

In FY 2022, Fiscal Service will continue its Payment Modernization efforts through the 

Disbursement Services Modernization Initiative and Post Payment Modernization Initiative. 

54.2

50.5* 49.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

FY 2019 Actual FY 2020 Actual FY 2021 APG Target

Number of Paper Checks Disbursed (Millions)
Fiscal - 17 

These efforts will modernize the disbursement processes to increase efficiencies, improve 

resiliency and security, enhance the customer experience, and enable the flexibility to adapt to 

future payment channels. 

Additionally, Fiscal Service plans to initiate an enterprise project aimed at modernizing the 

electronic invoicing system. This initiative will provide a simple and easy-to-use e-Invoicing 

platform that will deliver economies of scale across the Federal Government and simplify the 

accounts payable process, while providing security and performance features required by 

agencies and vendors. 

Fiscal Service will also continue to advance the Payment Integrity Center of Excellence 

(PICOE) and Do Not Pay (DNP) programs in FY 2022. These programs support agencies, law 

enforcement, and states in combatting fraud, waste, abuse, and improper payments. PICOE and 

DNP will continue to provide actionable business insights and solutions that transform how 

Federal agencies approach identifying, preventing, stopping, and recovering improper payments 

and related fraudulent activity. 

In FY 2020, nine new state programs utilized DNP analytical services, 13 new federal programs 

used DNP analytical services, and 12 state or federal programs expanded DNP portal 

functionality. This growth has led to continued progress in identifying or stopping improper 

payments – specifically, the count and dollar amount of improper payments identified and 

prevented. 

2.1.4 – Retail Securities Services Resources and Measures 

Dollars in Thousands 

   FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $71,252 $61,910 $60,491 $55,465 $56,344 $59,312 $61,200 

Reimbursable Resources $16,026 $12,642 $12,100 $13,306 $12,406 $14,544 $15,549 

Matured Unredeemed Debt $0 $0 $0 $0 $401 $25,000 $0 

Budget Activity Total $87,278 $74,552 $72,591 $68,771 $69,151 $98,856 $76,749 

Full-time Equivalents (FTE) 436 472 434 388 393 406 412 

Note: The FY 2016 - FY 2020 appropriated resources represent actual obligations. 

   FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Percentage of Retail Customer 

Service Transactions That Are 

Unassisted (%) 

N/A N/A N/A 69 70 B 71 72 

Key: B - Baseline 

Retail Securities Services Budget and Performance 

($61,200,000 from direct appropriations, $15,549,000 from reimbursable sources)

Fiscal Service provides simple, safe, and affordable ways for investors to directly interact with 

the Department of the Treasury to save for their future by investing in Treasury securities. The 

U.S. Treasury began offering savings bonds in paper in 1935. Today, electronic savings bonds 

and marketable securities are sold through TreasuryDirect, an internet-based book-entry system 

for purchasing, holding, and conducting Treasury securities transactions. In FY 2020, Fiscal 
Fiscal - 18 

Service electronically issued $98.1 billion in Treasury retail securities (includes sales and 

reinvestments), processed $114.7 billion in redemptions, added 100,044 new accounts to 

TreasuryDirect, and made 2.8 million retail payments worth $36 billion. 

Description of Performance: 

Retail Securities Services has demonstrated progress with improving customer self-sufficiency. 

In FY 2020, the percentage of unassisted retail securities transactions increased over the 

FY 2019 baseline, with 70 percent of retail securities transactions unassisted. In FY 2021 and 

beyond, Fiscal Service will continue to modernize its business to improve the customer 

experience by increasing customer self-sufficiency and encouraging more investors to save for 

the future, while achieving Treasury’s financing mission in a cost-effective manner. These 

improvements will enhance the customers’ ability to purchase, reinvest, and manage their 

Treasury retail investments. 

Retail Securities Services is also launching multiple initiatives to help owners find and claim 

their matured savings bonds. The initiatives focus on matured unredeemed debt (MUD), or 

savings bonds that have reached final maturity and stopped earning interest. The initiatives will 

include records modernization, online search tools, state partnerships, data analysis, customer 

research, communications, and longer-term initiatives to improve customer experience. 

Improving savings bond records over time will enable collaboration with stakeholders in locating 

MUD bondholders. Fiscal Service continues to work with the National Association of Unclaimed 

Property Administrators (NAUPA) and the National Association of State Treasurers (NAST) to 
Fiscal - 19 

find collaborative solutions to locate owners of MUD bonds. In addition to adding links to 

TreasuryHunt.gov on unclaimed property websites and other locations, the collaboration includes 

the creation of workgroups with states to consider best practices in identifying customers, 

encouraging redemption, and finding heirs and owners of savings bonds. Fiscal Service is also 

leveraging data matching with federal agencies to better identify updated bond owner contact 

information. 

2.1.5 – Wholesale Securities Services Resources and Measures 

Dollars in Thousands 

   FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $13,848 $16,796 $21,851 $23,522 $23,414 $25,486 $26,297 

Reimbursable Resources $3,115 $4,214 $4,613 $4,599 $5,062 $4,797 $4,888 

Budget Activity Total $16,963 $21,010 $26,464 $28,121 $28,476 $30,283 $31,185 

Full-time Equivalents (FTE) 78 117 116 112 116 122 122 

Note: The FY 2016 - FY 2020 appropriated resources represent actual obligations. 

   FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Percentage of Auction Results 

Released Accurately (%) 100 98.9 98.9 98.8 100 100 100 100 

Percentage of Auctions 

Successfully Completed by the 

Scheduled Close Date (%) 

N/A N/A N/A 100 100 B 100 100 

Key: B - Baseline 

Wholesale Securities Services Budget and Performance 

($26,297,000 from direct appropriations, $4,888,000 from reimbursable sources)

The Wholesale Securities Services (WSS) budget activity finances daily government operations 

by offering Treasury securities through reliable, accurate, and secure electronic systems. Fiscal 

Service oversees the announcement, auction, and issuance of marketable Treasury bills, notes, 

bonds, floating rate notes, and inflation-protected securities. 

In FY 2020, the Federal Government’s response to the COVID-19 pandemic resulted in 

unprecedented increase in Treasury borrowing needs. Treasury successfully conducted 

447 auctions and raised more than $18.6 trillion without disrupting financial markets. In 

FY 2020, Fiscal Service set many records for auction-related workload indicators. Thirteen 

auctions, the most since 2008, were conducted during the week of April 6‐10, auctioning 

$611 billion in Treasury securities. Five auctions in a single day were conducted for the first time 

ever on May 27, and six auctions in a single day were conducted on September 8. 

Prior to the economic stimulus package, WSS averaged 28 auctions and $1.06 trillion securities 

awarded per month. Since April 2020, the monthly averages have increased to 47 auctions 

(+67.7 percent) and $2.04 trillion awarded (+89.18 percent) per month. 
Fiscal - 20 

Description of Performance: 

In FY 2020, Fiscal Service saw unprecedented demand for borrowing needs and set several 

workload volume records. Through this increased workload, Fiscal Service continued to 

demonstrate operational excellence by successfully completing 100 percent of auctions by the 

scheduled close date and by releasing 100 percent of auction results accurately. 

Additionally, Treasury conducted substantial market outreach to a broad range of market 

participants to gather information on market conditions and help inform Treasury’s policy 

decisions. Simultaneously, Treasury worked to improve its internal data and analytics 

platform to handle growing data sets and facilitate additional analyses. 

Fiscal Service also continued efforts to modernize the Treasury securities auction system. 

Key FY 2020 accomplishments included implementing an enhanced operations and 

269 269 275 270

325

447 435 435

0

50

100

150

200

250

300

350

400

450

500

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Projected

FY 2022

Projected

Total Number of Auctions Conducted

$6.9 $8.0 $8.6

$10.0

$11.7

$18.7

$21.8 $23.0

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Projected

FY 2022

Projected

Dollar Amount of Marketable Securities Issued ($ Trillions)
Fiscal - 21 

maintenance program to ensure the resiliency, reliability, and high-performance of the 

existing technology; developing a roadmap for additional system enhancements; and 

initiating additional discovery activities beyond the current enhancement roadmap for the 

auction modernization effort. In FY 2021, Fiscal Service will complete the Financing 

Modernization Discovery Phase to determine which approach to take to move forward with 

the Financing Modernization effort. 

2.1.6 – Debt Collection Resources and Measures 

Dollars in Thousands 

   FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Reimbursable Resources $187,152 $176,928 $167,726 $204,512 $214,910 $228,984 $233,177 

Budget Activity Total $187,152 $176,928 $167,726 $204,512 $214,910 $228,984 $233,177 

Full-time Equivalents (FTE) 390 417 389 366 348 403 412 

Note: The FY 2016 - FY 2020 appropriated resources represent actual obligations. 

   FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Amount of Delinquent Debt 

Collected Through All Available 

Tools ($ Billions) 

7.41 7.61 7.44 9.65 10.68 8.88 8.81 9.04 

All Delinquent Debt Collected as 

a Percentage of All Delinquent 

Debt Referred (%) 

N/A N/A N/A 14.3 15.7 14.9 14.9 14.9 

Percentage of the Active 

Delinquent Debt Portfolio 

Collected (%) 

N/A N/A N/A 6.8 9.2 7.0 7.0 7.0 

Debt Collection Budget and Performance 

($233,177,000 from reimbursable sources)012017 FY 2018 FY 2019 FY 2020 FY 2021 

Fiscal Service is the Government’s central debt collection agency, managing the Government’s 

delinquent debt portfolio and collecting delinquent debts owed to the United States, such as 

Federal mortgage, small business, or student loans; Federal salary or benefit overpayments; and 

fines or penalties assessed by Federal agencies. Fiscal Service collects delinquent debt through 

two programs: Treasury Offset Program (TOP) and Cross-Servicing. Through TOP, the names 

and taxpayer identifying numbers of debtors included in a Fiscal Service database are matched 

against the names and taxpayer identifying number of recipients of Federal payments. If there are 

matches, the amounts of the payments are reduced (“offset”) to satisfy the delinquent debts. In 

FY 2020, Fiscal Service processed 12.78 million debts through TOP. 
Fiscal - 22 

Through Cross-Servicing, delinquent debts referred to Fiscal Service by Federal agencies are 

collected several ways, including offsetting Federal payments, sending demand letters to debtors, 

entering into payment agreements, withholding wages administratively, referring debts to the 

Department of Justice for action, reporting credit to bureaus, and contracting for the services of 

private collection agencies. In FY 2020, Fiscal Service processed 1.60 million debts through 

Cross-Servicing. 

Fiscal Service continues to increase the amount of delinquent debt collected through all available 

tools. During FY 2020, the COVID-19 pandemic had a significant impact on delinquent debt 

collection. Beginning in April 2020, several federal and state creditor agencies suspended 

collection activities due to economic concerns related to the pandemic. In FY 2020, Fiscal 

11.39 11.98

14.90

13.26

16.30

12.78

17.97

18.87

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Projected

FY 2022

Projected

Number of Debts Processed Through TOP (Millions)

0.34 0.41

1.97

2.40 2.53

1.60

2.78 2.92

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Projected

FY 2022

Projected

Number of Debts Processed Through Cross Servicing (Millions)
Fiscal - 23 

Service was still able to exceed its $8.8 billion collection target with a total $10.68 billion 

collected. Of the $10.68 billion collected in delinquent debt, $10.41 billion was collected through 

the Treasury Offset Program (TOP) and $268.9 million through the Cross-Servicing program. 

This total also includes a collection of $3.4 billion from economic impact payments (EIPs) to 

satisfy delinquent child support. 

Fiscal Service also continued to exceed targets for delinquent debt collected as a percentage of 

delinquent debt referred, and the percentage of the active delinquent debt portfolio collected. 

However, Fiscal Service anticipates continuing challenges in delinquent debt collection in 

FY 2021 due to ongoing concerns about the COVID-19 pandemic. In FY 2020, the collections 

success was driven by offsets of the first round of EIP. The second and third rounds of EIP did 

not allow for the same offsets and resulted in a decline in collections revenue. Fiscal Service 

made efforts to reduce expenditures to address these challenges. Additionally, Fiscal Service 

received new authority to use CARES Act implementation funds to offset some of this lost debt 

collection revenue and continue these operations. However, agencies continuing to suspend 

collections is resulting in an overall decrease in Fiscal Service’s collections revenue. As such, the 

collection targets for FY 2021 are significantly reduced from the collection amounts of FY 2020, 

and the pandemic impacts on future collections remain uncertain. Collection projections are 

contingent on timeframes for agency suspension of debt collection activities. 

C – Changes in Performance Measures 

There are no changes to performance measures since the FY 2021 Congressional Justification. 

D– Evidence-Building Activity 

The table below describes Fiscal’s major evidence-building activities and corresponding 

resources. Additionally, refer to the Executive Summary for a discussion of Treasury-wide 

evidence-building functions. 

Type of 

Evidence 

Building 

Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Evaluation 

Collection and 

analysis of data 

to assess 

effectiveness 

and efficiency of 

programs, 

policies, or 

procedures

Estimated share 

of all EvidenceBuilding 

Activities: 

Major activities: 

 Program Evaluation 

 Assessing Innovative, 

Emerging Technology 

 Data Quality 

 0340 – Program 

Manager 

 0343 – Management 

& Program Analyst 

 Contract Resources 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☐ By external 

partners 

 (non-government) 
Fiscal - 24 

Type of 

Evidence 

Building 

Activity 

Major Activities and 

Planned Projects

Resource Types Use 

 10% FY21 and FY22 projects: 

 Program Evaluation: 

Establish an Evidence 

Register, create an 

Enterprise Learning 

Agenda, and an Annual 

Evaluation Plan. (Active) 

 Blockchain for Grant 

Payments: Examine 

distributed ledger 

technology (i.e. blockchain) 

to understand its value 

proposition and legal and 

regulatory implications in 

the federal grant payment 

domain. Evidence will 

enable Fiscal Service to 

make a “Go/No Go” 

recommendation for 

continuing to a potential 

pilot. (Active) 

 Emerging Technology 

Incubator: Launch a beta 

blockchain incubator, 

complete an Artificial 

Intelligence (AI) Warrant 

Lab and make a “Go/No 

Go” decision on whether to 

proceed with proof of 

concept / pilot, and identify 

one additional emerging 

technology proof of concept 

/ pilot. (Active) 

 Data Quality: Initiate data 

quality research project and 

develop data quality 

improvement plans. 

(Active) 

☒ By unaffiliated 

 external researchers 

☐ Other (describe) 

Research 

Modeling or 

other systematic 

use of data to 

Major activities: 

 Customer Research 

 Environmental Scans / 

Research 

 0340 – Program 

Manager 

 0343 – Management 

& Program Analyst 

☒ For internal policy 

 decision-making 

☒ During internal 
Fiscal - 25 

Type of 

Evidence 

Building 

Activity 

Major Activities and 

Planned Projects

Resource Types Use 

explore 

emerging issues 

or potential 

scenarios to 

generate new 

knowledge

Estimated share 

of all EvidenceBuilding 

Activities: 

 50%

FY21 and FY22 projects: 

 Future Readiness 

Assessment: Align Fiscal 

Service resources to achieve 

the vision for the future of 

federal financial 

management. (Active) 

 Matured Unredeemed Debt 

(MUD): Customer research. 

(Active) 

 Treasury Retail Investment 

Manager (TRIM): Customer 

journey research. (Active) 

 Disbursement Services 

Modernization Initiative 

(DSMI): Conduct Benefit 

agency user experience and 

feedback session(s) centered 

on future of payment 

disbursements. (Active) 

 Financing Modernization: 

Conduct project discovery 

phase and financing 

environmental scan to 

inform options and 

recommendations. (Active) 

 Treasury Financial 

Experience (TFX): Utilize 

user focus groups during the 

TFX design process. 

(Active) 

 Contract Resources strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☐ By external 

partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 
Fiscal - 26 

Type of 

Evidence 

Building 

Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Analysis 

Routine and 

frequent use of 

data that 

produces 

insights for 

decision making 

and program 

management

Estimated share 

of all EvidenceBuilding 

Activities: 

 25%

Major activities: 

 Performance Measurement 

 Alternatives Analysis 

 0301 – 

Miscellaneous 

Administration and 

Program 

 0340 – Program 

Manager 

 0343 – Management 

& Program Analyst 

 Contract Resources 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☒ By external 

partners 

 (non-government) 

☒ By unaffiliated 

 external researchers 

☐ Other (describe) 
Fiscal - 27 

Type of 

Evidence 

Building 

Activity 

Major Activities and 

Planned Projects

Resource Types Use 

FY21 and FY22 projects: 

 Mainframe Strategy: 

Conduct a modernization 

study to determine a path 

forward for aging 

mainframe platform. 

(Active) 

 E-Invoicing Modernization: 

Complete E-Invoicing 

alternative analysis and 

develop future state 

recommendation. (Active) 

 Payment Integrity Center of 

Excellence (PICOE): 

Complete a pilot and 

implementation planning 

that will support increased 

recovery and prevention of 

payments to the deceased. 

Research, analyze, and 

design a solution that 

supports sharing of 

compromised accounts and 

payees. Determine 

approaches for sharing data 

with two agencies. 

 Participate in Joint 

Financial Management 

Improvement Program 

(JFMIP) project that studies 

the effects of integrating 

identity management as a 

mitigation strategy to 

reduce billions of dollars 

annual in improper 

payments, including those 

that should never have been 

made. (Active) 
Fiscal - 28 

Type of 

Evidence 

Building 

Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Statistics 

Collection, 

compilation, 

and processing 

of data for 

describing or 

estimating 

characteristics 

or insights 

concerning 

groups

Estimated share 

of all EvidenceBuilding 

Activities: 

 15%

Major activities: 

 Analytics Projects 

 0340 – Program 

Manager 

 0343 – Management 

& Program Analyst 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☒ By external 

partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Do Not Pay (DNP) 

Analytics: Initiate analytics 

projects with new state and 

new federal programs, and 

expand DNP Portal 

functionality to state and 

federal programs. (Active) 

Section III – Additional Information 

A – Summary of Capital Investments 

Fiscal Service leads the way for responsible, effective government through our commitment to 

technology enablement, customer-focused service, efficient operations, strategic partnering, and 

agility to enable the missions of the Federal Government. Fiscal Service strategically governs 

and manages its information technology (IT) portfolio lifecycle, and continually harnesses IT 

resources, investment health, and portfolio performance insights for capital planning decisions to 

deliver secure, flexible, extensible, and resilient technology services and solutions that maximize 

business value. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 

Effective Investment Governance 

Fiscal Service Governance focuses on overall progress in achieving the outcomes described in 

the bureau’s Strategic Plan and the Future of Federal Financial Management vision. The 

governance and portfolio management functions ensure that the IT Portfolio maintains cost 

effectiveness and continuously delivers intended results throughout the lifecycle of investments. 

A monthly investment health assessment of cost, schedule, scope, operational performance, and 

risk is in place, as are an informal ChatStat process – which uses internal Bureau meetings to 
Fiscal - 29 

discuss investment, program, or project plans and performance concerns and identify actionable 

steps for course correction – and a formal TechStat process that engages appropriate senior level 

officials for insight and successful remediation of significant issues or risks. Financial data 

transparency and benchmarking capabilities are being matured through the implementation of the 

Technology Business Management (TBM) framework and Total Cost of Ownership (TCO) 

model; the bureau has achieved 99 percent IT financial data transparency through alignment to 

the TBM IT and finance layers. The value insights being gained inform governance decisions 

around investment planning, selection, resourcing, and prioritization to best support the mission 

and long-term plans for Fiscal Service and Treasury. 

Effective Project Execution 

Fiscal Service has a disciplined and consistent approach to project management (PM) rooted in 

industry standard best practices and supported through a bureau-wide project management center 

of excellence. The Project Management Competency Center provides input and guidance on PM 

standards, procedures, and training as well as actionable insights and recommendations based on 

the latest trends in project management. In addition, a fully supported project management 

community of practice is in place providing practitioners with special programming, surveys, and 

communication focused on collaboration, unique learning opportunities, creative problem 

solving, and leadership led discussions on practical lessons learned. Each IT investment has a 

dedicated program manager and a fully staffed integrated program team. The systems that 

support each investment are enhanced using iterative development techniques, with over 85 

percent of the bureau’s current software development projects using an iterative development 

methodology. Project-based reporting is used to align projects from governance through 

execution and thus improve the bureau’s ability to monitor performance and shape IT strategy. 

Additionally, Fiscal Service is continually assessing and improving its program and project 

management capability, and is implementing principles outlined in the Program Management 

Improvement Accountability Act (PMIAA). 

Enterprise Architecture Services 

Enterprise Architecture (EA) services ensure that Fiscal Service applies a common framework, 

using consistency and standardization practices, to describe and analyze investments which 

enables the bureau to proactively plan for changes, according to business vision and technology 

trends. Fiscal Service’s EA program is designed to facilitate cross-agency analysis of 

capabilities, knowledge, processes, and relationships to apply evidence-based techniques, 

identify duplicative investments, discover goals and opportunities for collaboration with other 

agencies, and establish a line-of-sight from the highest-level strategic goals to the infrastructure 

that enables the achievement of those goals. The value provided by the bureau’s EA services is 

demonstrated through the development of a Fiscal Service technology roadmap, which is 

leveraged in tandem with IT Portfolio rationalization and investment and cost optimization 

efforts to continuously transform methods of IT service and product delivery. Service Brokers 

ensure this transformation is designed and implemented in a standardized manner while also 

aligned with customer expectations by engaging with stakeholders ahead of their modernization 

needs. 

 
Fiscal - 30 

Enterprise Risk Management (ERM) 

The nature of Fiscal Service’s work requires effective enterprise risk management and high 

levels of performance to ensure the bureau maintains operational excellence while seeking 

innovative solutions to improve efficiencies and transform financial management and the 

delivery of shared services in the Federal Government. To this end, Fiscal Service has 

established an Office of Enterprise Risk Management (OERM) to promote a common 

understanding and approach to risk management and strengthen organizational capabilities to 

recognize, assess, and address risks that could disrupt the successful achievement of strategic 

goals and objectives. Fiscal Service has also established a Bureau Risk Committee to provide 

executive-level accountability for identifying, managing, and monitoring enterprise risk for the 

bureau, making timely and collaborative risk decisions, providing transparency around enterprise 

risks, and enabling a risk-aware culture. In collaboration with the Executive Board/Risk 

Committee, OERM has developed the Fiscal Service Risk Appetite Statement to guide bureau’s 

strategic direction. Moreover, through the development and issuance of an ERM framework, 

policies, guidance, and tools, the bureau incorporates risk management practices in decisionmaking processes such as strategic and tactical planning, workforce planning, capital investment 

planning, objective prioritization, and budget formulation. Fiscal Service continues to 

communicate the importance of effective risk management to all employees. 

Cybersecurity 

Fiscal Service has a multi-faceted mission that promotes financial integrity and operational 

efficiency across the Federal Government. As such, protecting the information and technology 

resources that support the bureau’s mission with more modern solutions that will support 

security, resiliency, and agility are critically important. Fiscal Service manages 60 FISMA 

systems with billions of PII records, including multiple High Value Assets (HVAs) that support 

the Financial Services Sector of the Critical Infrastructure (CI) of the Federal Government. Fiscal 

Service invests in strengthening the cyber defenses of HVAs against the increasing volume, 

sophistication, frequency, impact and brazenness of global cybersecurity threats. These 

investments are critical to maintain confidence in the financial ecosystem of the United States 

and avoid the immeasurable reputational damage Treasury would suffer in the event of a 

significant data breach or cybersecurity incident. Financial integrity and operational efficiency 

are accomplished by effective, coordinated management of security risks and incidents that 

ensure the confidentiality, integrity, and availability of the bureau’s systems are maintained. 

Fiscal Service employs an in-depth defense strategy to protect against, detect, and respond to 

anomalies in the bureau’s network and systems. In addition, Enterprise Cybersecurity ensures 

Fiscal Service information technology resources are compliant with the National Institute of 

Standards and Technology security standards and satisfies annual security audit requirements. 

While Fiscal Service has not identified any data or security compromises associated with the 

recent supply chain threats impacting the IT sector, Fiscal Service is accelerating efforts that will 

enhance cybersecurity, including protection, detection, and response capabilities, in 2021 and 

beyond, to include adopting a Zero Trust approach. 



Department of the Treasury

Office of Financial Stability

Congressional Budget

Justification and Annual 

Performance Plan and Report

FY 2022
OFS – 2

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

1.1 - Program Account Summary........................................................................................... 3

1.2 – Financing Account Summary ............................................................................................ 4

1.3 – Program Disbursement, Repayments, and Cost/Savings................................................... 4

B – Vision, Priorities and Context .............................................................................................. 4

C – Credit Reform Account Description .................................................................................... 5

1.4 – Budget Adjustments Table................................................................................................. 7

D – Budget Increases and Decreases Description....................................................................... 7

1.5 – Object Classification (Schedule O) Obligations................................................................ 8

E – Appropriations Language and Explanation of Changes....................................................... 8

Section II – Annual Performance Plan and Report................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

C – Operational Goals............................................................................................................... 11

D – Evidence-Building Activity ............................................................................................... 12

Section III – Additional Information ........................................................................................ 12

A – Summary of Capital Investments....................................................................................... 12
OFS - 3

Section I – Budget Request

A – Mission Statement

A central part of the response to the 2008 financial crisis was the implementation of the Troubled 

Asset Relief Program (TARP), which was established in the fall of 2008 under the Emergency 

Economic Stabilization Act of 2008 (EESA) (P.L. 110-343) within the Office of Domestic 

Finance at the U.S. Department of the Treasury (Treasury). TARP was created to restore the 

liquidity and stability of the financial system, and it is administered by the Office of Financial 

Stability (OFS).

Since late 2010, OFS has made significant progress in winding down TARP investment 

programs and in recovering OFS’s outstanding investments. OFS continues to operate a housing 

program under TARP to help struggling families avoid foreclosure, but in fiscal year (FY) 2016 

began to wind-down the largest TARP housing program. As of November 30, 2020, OFS has 

recovered more than 96 percent of the $442.7 billion in total program funds disbursed under 

TARP, as well as an additional $17.6 billion from Treasury’s equity in American International 

Group, Inc. (AIG). When all of Treasury’s AIG investments are included, the amount recovered 

is greater than the funds disbursed by nearly $0.2 billion.

1.1 - Program Account Summary

Dollars in Thousands

FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022

Actual Estimated Estimated Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Obligations

Equity Program Account 6,671 5,000 0 (5,000) -100.00%

Housing Account 0 0 0 0 NA

TARP Direct Program Account 0 0 0 0 NA

TARP Administrative Account 43,078 40,789 37,637 (3,152) -7.73%

TARP Negative Downward Reestimate 

Receipt Account (74,433) 0 0 0 NA

Total Obligations ($24,684) $45,789 $37,637 ($8,152) -17.80%

Budget Authority 

Equity Program Account 6,671 5,000 0 (5,000) NA

Housing Account 0 0 0 0 NA

TARP Direct Program Account 0 0 0 0 NA

TARP Administrative Account 51,399 40,789 37,637 (3,152) -7.73%

TARP Negative Downward Reestimate 

Receipt Account (74,433) 0 0 0 NA

Total Budget Authority ($16,363) $45,789 $37,637 ($8,152) -17.80%

Outlays

Equity Program Account 6,671 5,000 0 (5,000) NA

Housing Account 669,436 643,944 426,846 (217,098) -33.71%

TARP Direct Program Account 0 0 0 0 NA

TARP Administrative Account 43,962 43,154 37,637 (5,517) -12.78%

TARP Negative Downward Reestimate 

Receipt Account (74,433) 0 0 0 NA

Total Outlays $645,635 $692,098 $464,483 ($227,615) -32.89%

Total Full-time Equivalents (FTE) 14 11 10 (1) -9.09%
OFS - 4

1.2 – Financing Account Summary

Dollars in Thousands

FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022

Actual Estimated Estimated Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

TARP Direct Loans

Obligations 73,222 0 0 0 NA

Collections 0 0 0 0 NA

Financing Authority (net) 0 0 0 0 NA

Financing Disbursements (net) 73,222 0 0 0 NA

Equity Purchases

Obligations 1,371 4,000 0 (4,000) NA

Collections 12,491 13,000 3,000 (10,000) NA

Financing Authority (net) (10,147) (8,000) (3,000) 5,000 NA

Financing Disbursements (net) (11,299) (12,000) (3,000) 9,000 NA

Housing

Obligations 975 1,000 0 (1,000) NA

Collections 17 0 0 0 NA

Financing Authority (net) 0 0 0 0 NA

Financing Disbursements (net) 958 1,000 0 (1,000) NA

1.3 – Program Disbursement, Repayments, and Cost/Savings

Dollars in Billions

Cumulative 

Obligated 

(as of 

11/30/2020)

Cumulative 

Disbursed

(as of 

11/30/2020)

Cumulative 

Outstanding 

(as of 

11/30/2020)

Total 

Cumulative 

Income 

(as of 

11/30/2020)

Total Cash 

Back (as of 

11/30/2020)

Total 

Estimated 

Life Costs 

(as of 

11/30/2020)

Bank Support Programs 250.5 245.5 0.0 35.7 275.6 (24.3)

Credit Market Programs 19.1 19.1 0.0 4.5 23.6 (3.3)

AIG Investment Program (AIG) 67.8 67.8 0.0 1.0 55.3 15.2 

Automotive Industry Financing Program 79.7 79.7 0.0 7.4 70.6 12.1 

Treasury Housing Programs 32.6 30.9 0.0 0.0 0.0 32.4 

Total 449.6 443.0 0.0 48.6 425.1 32.1 

Additional AIG Common Shares Held by 

Treasury 0.0 0.0 0.0 17.6 17.6 (17.6)

Total for Programs and Shares 449.6 443.0 0.0 66.2 442.7 14.5 

*If all Treasury AIG Investments are combined, we currently estimate a net gain of nearly $2.4 

billion on those shares.

B – Vision, Priorities and Context

TARP was created by EESA in October 2008 as part of a broad-based federal response to the 

financial crisis. The purposes of EESA were —
OFS - 5

(1) to immediately provide authority and facilities that the Secretary of the Treasury could use to 

restore liquidity and stability to the financial system of the United States; and

(2) to ensure that such authority and facilities were provided in a manner that would —

(A) protect home values, college funds, retirement accounts, and life savings;

(B) preserve homeownership and promote jobs and economic growth;

(C) maximize overall returns to the taxpayers of the United States; and

(D) provide public accountability for the exercise of such authority.

EESA vested authority in the Secretary of the Treasury to “purchase, and to make and fund 

commitments to purchase, troubled assets from any financial institution, on such terms and 

conditions as are determined by the Secretary.” 

As a result of improved financial conditions and careful stewardship of the program, the ultimate 

cost to taxpayers of TARP investments is estimated to be significantly lower than initially 

expected. In FY 2009, the program was projected to cost $341 billion, but as of November 30, 

2020, it is estimated to cost only $32.1 billion (of which $-0.3 billion relates to investments and 

$32.4 billion relates to housing programs that do not require repayments by recipients). Lifetime 

costs are projected to be $14.5 billion with the inclusion of receipts from Treasury’s sale of 

additional AIG common stock.

During FY 2021 and FY 2022, OFS’s priority is to continue the responsible wind-down of all 

TARP programs. OFS is expected to complete its wind-down in FY 2024.

OFS Administrative Expenses

The authority for OFS’s administrative funding is provided in section 118 of EESA. In 

FY 2021, OFS plans to obligate just over $40 million and use 10 Full-Time Equivalent (FTE) 

employees. In FY 2022, OFS plans to obligate just over $38 million and use 10 FTE employees, 

a reduction of over 6% and 9%, respectively, from the current FY 2021 estimates, to fund the 

management, maintenance and continued wind-down of the TARP housing programs and the 

disposition of OFS’s remaining investments.

C – Credit Reform Account Description

Section 123 of EESA requires the cost of TARP programs to be calculated using the methods 

required by the Federal Credit Reform Act of 1990 (“credit reform”). In addition to the OFS 

Administrative Account, the organization manages six accounts to comply with the credit reform 

accounting requirements: (1) the TARP Equity Purchase Program Account; (2) the TARP 

Equity Purchase Financing Account; (3) the TARP Housing Programs Account; (4) the TARP 

Housing Programs, Letter of Credit (LOC) Financing Account; (5) the TARP Program Account; 

and (6) the TARP Direct Loan Financing Account.

Account Descriptions

TARP Equity Purchase Program Account: The TARP Equity Purchase Program Account 

records the subsidy costs (cost to the government) associated with federal equity injections into 

qualifying financial institutions. Subsidy costs are calculated on a net present value basis.
OFS - 6

TARP Equity Purchase Financing Account: The account is a non-budgetary account that records 

all financial transactions to and from the government resulting from equity purchases. The 

account primarily tracks each cohort year’s purchase activity (dividend payments, the exercise of 

warrants, Treasury borrowings, interest paid to or received from Treasury, etc.) and, as a means 

of financing, is not included in the budget totals when calculating total government spending.

TARP Housing Programs Account: The TARP Housing Programs Account records the subsidy 

costs and cash outlays associated with Treasury’s housing programs under TARP. The Making 

Home Affordable (MHA) and Hardest Hit Fund (HHF) housing programs are recorded on a cash 

basis, and the Federal Housing Administration (FHA) Short-Refinance Program is subject to 

credit reform accounting requirements, whereby its subsidy cost is calculated on a net present 

value basis.

TARP Housing Programs, LOC Financing Account: The TARP Housing Programs, LOC 

Financing Account is a non-budgetary account that records all financial transactions to and from 

the government resulting from OFS’s FHA Short-Refinance Program. Like other financing 

accounts, its primary purpose is the financial tracking of each cohort year’s loan activity. It is 

not included in the budget totals.

TARP Program Account: The TARP Program Account records the subsidy costs associated with 

direct loans obligated to qualifying institutions. Subsidy costs are calculated on a net present 

value basis.

TARP Direct Loan Financing Account: The account is a non-budgetary account that records all 

financial transactions to and from the government resulting from direct loans. Like the TARP 

Equity Purchase Financing Account, its primary purpose is the financial tracking of each cohort 

year’s loan activity. It is not included in the budget totals.

OFS Administrative Account: This account provides for the administrative costs of OFS.
OFS - 7

1.4 – Budget Adjustments Table

Dollars in Thousands

FTE Amount

FY 2021 Estimate 11 $40,751 

Changes to Base: 

Maintaining Current Levels (MCLs):

 

- 815 

Pay Annualization (1.1% average pay raise)

 

- 6 

Pay Raise (2.7% average pay raise)

 

- 17 

FERS Contribution Increase

 

- 22 

Non-Pay

 

- 771 

Subtotal Changes to Base 0 815 

FY 2022 Current Services 11 $41,566 

Program Changes: 

Program Decreases (1) (3,929)

Housing Program Support 0 (1,000)

Maintenance and Disposition of Assets 0 (381)

OFS Salaries and Benefits (1) (300)

Organizational Support 0 (2,248)

Subtotal Program Changes (1) ($3,929)

Total FY 2022 Estimate 10 $37,637 

D – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs).............................................+$815,000 / +0 FTE

Pay Annualization (1.0%) +$6,000 / +0 FTE

Funds are required for annualization of the January 2021 pay raise.

Pay-Raise (2.7% in 2022) +$17,000 / +0 FTE 

Funds are required for a 2.7% average pay raise in January 2022.

FERS Contribution Increase +$22,000 / +0 FTE 

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022.

Non-Pay +$771,000 / +0 FTE 

Funds are required for non-labor costs such as travel, contracts, rent, supplies, and equipment.

Program Decreases..................................................................-$3,929,000 / -1 FTE

Housing Program Support -$1,000,000 / +0 FTE 

Administrative and compliance functions will continue to wind-down during FY 2021 and over 

time as programs close and no new assistance actions are provided and commitments are paid. 

Maintenance and Disposition of Assets -$381,000 / +0 FTE 

During FY 2020, OFS will continue the disposition of its position in the remaining Capital 

Purchase Program (CPP) and Community Development Capital Initiative institutions (CDCI). 

In FY 2021, OFS expects its portfolio to be composed of a few institutions, primarily CDCI 

institutions.
OFS - 8

OFS Salaries and Benefits -$300,000 / -1 FTE 

Savings resulted from natural attrition and expiration of term appointments due to the winddown of various TARP programs.

Organizational Support -$2,248,000/ +0 FTE 

Administrative costs associated with managing OFS’s portfolio will decline over time as TARP 

winds down. However, many duties and responsibilities will remain and are not directly 

correlated to the volume of assets held by OFS. Many of these organizational support functions 

will be run in-house and relate to legislative and oversight-mandated reporting functions, as well 

as the management and maintenance of TARP’s housing programs.

1.5 – Object Classification (Schedule O) Obligations

Dollars in Thousands

Object Classification

FY 2020 

Actual 

Obligations

FY 2021 

Estimated 

Obligations

FY 2022 

Estimated 

Obligations

11.1 - Full-time permanent 2,407 1,763 1,489 

11.5 - Other personnel compensation 72 45 42 

11.9 - Personnel Compensation (Total) 2,479 1,808 1,531 

12.0 - Personnel benefits 757 407 384 

Total Personnel and Compensation Benefits $3,236 $2,215 $1,915 

21.0 - Travel and transportation of persons 9 5 15 

23.3 - Communication, utilities, and misc charges 1 1 1 

25.1 - Advisory and assistance services 4,024 3,418 2,510 

25.2 - Other services from non-Federal sources (TOTAL) 30,191 29,031 27,650 

25.3 - Other goods and services from Federal sources 5,616 6,070 5,536 

26.0 - Supplies and materials 0 3 3 

31.0 - Equipment 0 8 8 

Total Non-Personnel $39,842 $38,536 $35,722 

New Budgetary Resources $43,077 $40,751 $37,637 

FTE 14 11 10 

*Amounts include all budgetary resources. 

E – Appropriations Language and Explanation of Changes

OFS does not receive discretionary appropriations from Congress. Therefore, no appropriations 

language is proposed.
OFS - 9

Section II – Annual Performance Plan and Report

A – Strategic Alignment

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 –

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

Bank Support Programs

CPP: OFS created CPP, its largest program, in October 2008. OFS provided a total of $204.9 

billion in capital to 707 institutions in 48 states. During FY 2020, OFS continued to wind-down 

remaining CPP investments. As of November 30, 2020, CPP has generated $226.4 billion in 

recoveries for taxpayers with two institutions remaining in the program, for a total of $17 million 

in investments outstanding.

CDCI: OFS created CDCI on February 3, 2010, to provide investments of capital to certified 

Community Development Financial Institutions (CDFI) banks, thrifts, and credit unions. OFS 

invested $570 million in 84 CDFIs, of which 28 institutions converted $363 million (including 

warrants) from CPP to CDCI. As of November 30, 2020, CDCI has generated $592 million in 

recoveries for taxpayers with two institutions remaining in the program, for a total of $1 million 

in investments outstanding. 

Housing Programs

OFS established several TARP housing programs, assisting millions of homeowners and 

introducing reforms for the mortgage servicing industry to facilitate mortgage modifications.

MHA: In 2009, OFS launched MHA to help homeowners prevent avoidable foreclosures and 

strengthen the housing market. The cornerstone of MHA is the Home Affordable Modification 

Program (HAMP), which provides eligible homeowners the opportunity to reduce their monthly 

mortgage payments. In accordance with provisions of the Consolidated Appropriations Act, 

2016 (P.L. 114-113), MHA terminated on December 31, 2016, except with respect to certain 

applications made before such date. MHA servicers were required to design policies and 

procedures to reasonably ensure that all MHA transactions were completed by December 1, 

2017. As of November 30, 2020, OFS had disbursed $21.4 billion out of a possible $22.9 billion 

under MHA.

HHF: Established in 2010 to provide aid to homeowners in states hit hardest by the economic 

and housing market downturn. The $7.6 billion initiative encompassed 18 states and the District 

of Columbia (DC). In December 2015, P.L. 114-113 granted Treasury authority to make an 

additional $2.0 billion in commitments through the HHF. As of November 30, 2020, OFS had 

disbursed $9.5 billion out of a possible $9.6 billion under HHF.

FHA Short-Refinance Program: OFS continues to support the FHA Short-Refinance Program, 

which was intended to assist borrowers with negative equity. The program has seen limited 

participation. As such, OFS has incrementally reduced the LOC Facility supporting this program 
OFS - 10

from an initial $8.0 billion to $27 million in FY 2017, which matches OFS’s maximum liability 

for loans covered by the program as of December 31, 2016, when the program ended for new 

refinances. As of November 30, 2020, the revised lifetime cost estimate for the program was 

$13 million for outstanding refinanced loans.

Other Programs

Automotive Industry Financing Program (AIFP): OFS fully wound down AIFP during FY 2015, 

selling its remaining stake in Ally Financial. OFS disbursed $79.7 billion in loans and equity 

investments to the automotive industry through the AIFP. As of November 30, 2020, OFS had 

collected $70.6 billion through sales, repayments, dividends, interest, recoveries, and other 

income. Recoveries from the bankruptcy liquidation of Old Chrysler and Old GM remain 

possible. 

All other TARP programs closed prior to FY 2016, including the Targeted Investment Program, 

Asset Guarantee Program, Public-Private Investment Program, Term Asset-Backed Securities 

Loan Facility, Small Business Administration 7(a) Securities Purchase Program, and AIG

Investment Program.

B – Budget and Performance by Budget Activity

Performance Measure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Actual Actual Actual Actual Actual Target Target Target

Clean Audit Opinion on TARP 

Financial Statements (ensure 

transparency of operations to 

the public)

1 1 1 1 1 1 1 1

Percentage of Congressional 

Constituent Correspondence 

Responses Completed within 

10 Business Days of Receipt

66.75 87.5 100 94 100 100 100 100

Percentage of FOIA 

Assignments On-Time or Less 

Than 30-Days Overdue 

(ensure transparency within 

the government)

56.56 85 85 98 100 95 95 95

Percentage of SIGTARP and 

GAO Oversight 

Recommendations Responded 

to On-Time (ensure 

transparency of operations to 

the public)

100 100 100 100 100 100 100 100

Percentage of Statutorily 

Mandated Reports Submitted 

On-Time (ensure transparency 

of operations to the public)

94.7 96.25 100 100 100 100 100 100

The authority for OFS’s administrative funding is provided in section 118 of EESA. The 

administrative budget consists primarily of contracting and financial agent support costs 

associated with OFS’s ongoing implementation and management of the TARP housing programs 

and the management and disposition of OFS’s remaining investments. In addition, continuing 

organizational support, including information technology, facilities, legal, compliance, 

accounting, and human resources, will be needed to manage and wind-down these ongoing 

initiatives. OFS’s senior management is responsible for performance on its operational goals.
OFS - 11

C – Operational Goals

OFS’s strategic goal is to transform government-wide financial stewardship and the request will 

support the underlying operational goals to help OFS achieve this strategic goal. These 

operational goals include: 

1. Completing the wind-down of remaining TARP investment programs;

2. Continuing to help struggling homeowners avoid foreclosure;

3. Minimizing the cost of the TARP programs to the taxpayer; and

4. Operating with the highest standards of transparency, accountability, and integrity.

Completing the wind-down of remaining TARP investment programs

The first Operational Goal is to complete the wind-down of the remaining TARP investment 

programs, the CPP and CDCI. OFS continues to exit CPP and CDCI by either: (i) allowing 

banks that are able to repurchase in full in the near future to do so; or (ii) restructuring and 

selling OFS’s investments in limited cases. OFS continues to work with CPP institutions to 

restructure certain investments that will allow them to exit TARP. As of November 30, 2020, 

OFS had $17 million in outstanding CPP investments and $1 million in outstanding CDCI 

investments.

Continuing to help struggling homeowners avoid foreclosure

OFS’s second Operational Goal is to continue helping struggling homeowners avoid foreclosure. 

P.L. 114-113, signed into law on December 18, 2015, provided that the MHA program would 

terminate on December 31, 2016, except with respect to certain loan modification applications 

made before such date. As set forth in program guidelines, MHA servicers were required to 

evaluate applications submitted before the deadline and offer trial modifications to eligible 

applicants. All MHA transactions, including first and second lien permanent modifications, 

short sales or deeds-in-lieu of foreclosure, and unemployment forbearance plans, were required 

to be completed per program guidelines by December 1, 2017. Under this program, as of 

November 30, 2020, more than 1.7 million homeowners have secured permanent mortgage 

modifications. In addition, the HHF Program provides funding to 18 states and DC to assist 

struggling homeowners. As of November 30, 2020, HHF has disbursed approximately $9.5

billion in total program and administrative funds, and HFAs have drawn approximately $9.5 

billion to prevent avoidable foreclosures and help stabilize neighborhoods. Based on 

information provided by the HFAs, 6 states are projected to be fully closed by the end of FY 

2021, including having completed final compliance reviews and returning any unused funds to 

Treasury. 

Minimizing the cost of the TARP programs to the taxpayer

The third Operational Goal of OFS is to minimize the cost of the TARP programs to the 

taxpayer. OFS pursues this goal by carefully managing the timely exit of these investments to 

reduce taxpayers’ exposure, returning TARP funds to reduce the federal debt, and continuing to 

replace government assistance with private capital in the financial system. OFS also takes steps 

to confirm that TARP recipients comply with any TARP-related statutory or contractual 

obligations such as executive compensation requirements and restrictions on dividend payments.
OFS - 12

Operating with the highest standards of transparency, accountability, and integrity

OFS’s final Operational Goal is to continue to operate with the highest standards of 

transparency, accountability, and integrity. OFS posts a variety of reports online that provide 

taxpayers with regular and comprehensive information about how TARP funds are spent, who 

received them and on what terms, and how much has been recovered to date. OFS also publishes 

the annual audited Agency Financial Report and continues to maintain productive working 

relationships with the three oversight bodies charged with auditing and reviewing TARP 

activities.

D – Evidence-Building Activity

Refer to the Executive Summary for a discussion of Treasury-wide evidence-building functions.

Section III – Additional Information

A – Summary of Capital Investments

OFS uses Departmental Offices (DO) systems and is part of DO’s capital investment strategy.

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: https://home.treasury.gov/about/budget-financial-reportingplanning-and-performance/budget-requestannual-performance-plan-and-reports



Department of the Treasury 

Office of Financial Research 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2022 

 
OFR - 2 

Table of Contents 

Section I - Budget Request ........................................................................................................... 3

A – Mission and Vision Statement ............................................................................................. 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Resource Detail Table ................................................................................................... 3

1.2 - Budget Adjustments Table ................................................................................................. 4

1.2 – Object Classification (Schedule O) Obligations ........................................................... 5

E – Appropriations Language and Explanation of Changes ....................................................... 5

F – Legislative Proposals ............................................................................................................ 5

Section II – Annual Performance Plan and Report ................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B –Budget and Performance by Budget Activity ....................................................................... 7

2.1.1 – Data Center Resources and Measures ............................................................................. 7

Data Center Budget and Performance ......................................................................................... 7

2.1.2 – Technology Center Resources and Measures ................................................................. 9

Technology Center Budget and Performance ............................................................................. 9

2.1.3 – Research and Analysis Center Resources and Measures .............................................. 10

Research and Analysis Center Budget and Performance .......................................................... 11

2.1.4 – Operations and Support Services Resources and Measures ......................................... 11

Operations and Support Services Budget and Performance ..................................................... 11

C – Evidence-Building Activity ................................................................................................ 12

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments ....................................................................................... 13

 
OFR - 3 

Section I - Budget Request 

A – Mission and Vision Statement 

Mission: Promote financial stability by delivering high-quality financial data, standards and 

analysis principally to support the Financial Stability Oversight Council and its member 

agencies. 

Vision: A transparent, efficient, and stable financial system. 

B – Summary of the Request 

The Office of Financial Research (OFR or Office) is estimating a fiscal year (FY) 2022 funding 

level of $75.271 million, which is $3.090 million higher than its FY 2021 estimated funding 

level. The FY 2022 Budget includes increases in funding for both the Technology Center and 

Research and Analysis Center (RAC). The increased funding will assist these offices as they 

continue to build out their infrastructure in support of OFR’s legislative mandate under the 

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (P.L. 111-203). 

1.1 – Resource Detail Table 

Dollars in Thousands FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Budgetary Resources Actual Estimate Estimate % Change 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting Collections Assessments 0 $64,761 0 $50,099 0 $70,594 NA 40.9% 

Interest 0 $476 0 $64 0 $440 NA 584.9% 

Recoveries 0 $2,064 0 $4,438 0 $3,080 NA -30.6% 

Restoration of Sequestration 

Rescission 0 $3,563 0 $3,849 0 $2,859 NA -25.7% 

Unobligated Balances from Prior Years 0 $50,420 0 $54,725 0 $38,168 NA -30.3% 

Total Revenue/Offsetting 

Collections 0 $121,285 0 $113,176 0 $115,142 NA 1.7% 

Expenses/Obligations 

Data Center 9 $2,771 11 $3,576 11 $3,710 0.0% 3.7% 

Technology Center 47 $35,739 60 $35,750 66 $37,541 10.0% 5.0% 

Research and Analysis Center 21 $7,340 26 $13,290 32 $14,718 23.1% 10.7% 

Operations and Support Services 25 $17,237 31 $19,565 36 $19,302 16.1% -1.3% 

Total Expenss/Obligations 102 $63,087 128 $72,181 145 $75,271 13.3% 4.3% 

Sequestration Reduction (3,849) (2,859) (4,049) 

Net Results 102 54,349 128 38,136 145 35,822 13.3% -6.1% 

FY 2020 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

1) The OFR is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule. 

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in Unobligated Balances from Prior 

Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 

3) The assessments, recoveries, interest and FTE estimates in the table above differ from the amounts in the 2022 President’s Budget. This 

difference is primarily due to adjustments made subsequent to the Appendix submission to account for lower interest income, higher-thananticipated recoveries and anticipated carryover funding from FY 2020 to FY 2021, as well as slower than anticipated hiring. 

 
OFR - 4 

1.2 - Budget Adjustments Table 

Dollars in Thousands

 FTE Amount 

FY 2021 Estimate 128 $72,181 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $1,051 

FERS Contribution Increase 0 $276 

Non-Pay 0 $775 

Non-Recurring Costs 0 ($2,651) 

Subtotal Changes to Base 0 ($1,600) 

FY 2022 Current Services 128 $70,581 

Program Changes: 

Program Increases: 17 $4,690 

Increased Staffing 17 $4,690 

Subtotal Program Changes 17 $4,690 

FY 2022 Estimate 145 $75,271 

Note: The assessments, recoveries, interest and FTE estimates in the table above differ from the amounts in the 2022 President’s Budget. 

This difference is primarily due to adjustments made subsequent to the Appendix submission to account for lower interest income, 

higher-than-anticipated recoveries and anticipated carryover funding from FY 2020 to FY 2021, as well as slower than anticipated hiring. 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ......................................................+$1,051,000 / +0 FTE

FERS Contribution Increase +$276,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$775,000 / +0 FTE 

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

equipment. 

Non-Recurring Costs................................................................................-$2,651,000 / +0 FTE 

Non-Recurring Costs -$2,651,000 / +0 FTE 

The OFR’s FY 2022 request redirects non-labor cost savings from Operations and 

Administrative Support Services that included non-recurring investments as part of the OFR’s 

migration to a cloud-based infrastructure and short-term initiatives in FY 2021. 

Program Increases ....................................................................................+$4,690,000 / +17 FTE 

Increased Staffing +$4,690,000 / +17 FTE 

The FY 2022 staffing model continues the OFR’s planned recruitment that came out of its 

reshaping; the OFR will bring its workforce up to the targeted 145 FTE. This includes 6 

additional FTEs in the Research and Analysis Center to support long-term research and 

monitoring initiatives. It also includes 6 FTEs within the Technology Center and 5 FTEs within 

the Operations Division to support the IT and operational support infrastructure needed for the 

OFR’s research and data efforts. Funds are also requested for anticipated increases to labor costs 

to include merit pay increases for qualifying current staff. 
OFR - 5 

1.2 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 19,112 24,768 28,214 

11.3 - Other than full-time permanent 0 305 615 

11.5 - Other personnel compensation 338 0 0 

11.9 - Personnel Compensation (Total) 19,450 25,073 28,829 

12.0 - Personnel benefits 7,194 8,358 9,610 

Total Personnel and Compensation Benefits $26,644 $33,431 $38,439 

21.0 - Travel and transportation of persons 77 415 425 

23.3 - Communications, utilities, and miscellaneous charges 116 167 167 

24.0 - Printing and reproduction 14 0 0 

25.1 - Advisory and assistance services 14,073 14,855 13,487 

25.2 - Other services from non-Federal sources 798 938 2,340 

25.3 - Other goods and services from Federal sources 5,842 6,568 6,593 

25.4 - Operation and maintenance of facilities 0 89 90 

25.7 - Operation and maintenance of equipment 5,028 3,565 3,810 

26.0 - Supplies and materials 9,864 9,513 8,805 

31.0 - Equipment 541 2,640 1,115 

32.0 - Land and structures 90 0 0 

Total Non-Personnel $36,443 $38,750 $36,832 

Total Obligations $63,087 $72,181 $75,271 

 

Full-time Equivalents (FTE) 102 128 145 

1) Personnel compensation and benefits include direct OFR staff members only. Object Classification 25.3, “Other goods and services from 

Federal sources,” and expenditures of “Operations and Support Services” include reimbursable support received from Treasury’s Departmental 

Offices; personnel benefits services from the Office of the Comptroller of the Currency; and, services from Treasury’s Bureau of the Fiscal 

Service Administrative Resource Center, including human resource, procurement, travel, and financial management services. 

2) The assessments, recoveries, interest and FTE estimates in the table above differ from the amounts in the 2022 President’s Budget. This 

difference is primarily due to adjustments made subsequent to the Appendix submission to account for lower interest income, higher-thananticipated recoveries and anticipated carryover funding from FY 2020 to FY 2021, as well as slower than anticipated hiring. 

E – Appropriations Language and Explanation of Changes

The OFR receives no annual appropriations from Congress. 

F – Legislative Proposals 

The OFR has no legislative proposals. 

 
OFR - 6 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The OFR was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act 

of 2010 to assist the Financial Stability Oversight Council (FSOC) and its member agencies 

though research, analytic tools, and data-related support on issues related to financial stability. 

Serving principally the FSOC and its member agencies, the OFR is tasked with improving the 

quality, transparency, and accessibility of financial data and information; assessing and 

monitoring threats to financial stability; conducting and sponsoring research related to financial 

stability; and promoting best practices in risk management. 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

OFR priorities for FYs 2021 and 2022 include: 

1. Conducting relevant research and providing timely financial stability analysis and data 

products to the FSOC, its member agencies, and other stakeholders. 

2. Administering highly secure and efficient service-oriented technology, data collection, data 

management, and data mandate-oriented programs; continuing engagement as an essential 

source of standards expertise and becoming a source of standardized data necessary for 

financial stability risk measurement and monitoring. 

3. Strengthening management accountability and employee engagement to continuously 

improve support for the FSOC and its member agencies. 

The Office will continue to focus on monitoring risks to financial stability and enhancing and 

expanding tools for the OFR, FSOC, and its member agencies to monitor those risks. The OFR 

will continue to provide stakeholders with high-quality, timely research and policy analysis. The 

OFR will also continue its work to identify and fill financial data gaps and to develop and 

implement financial data standards that underpin the quality and comparability of financial data 

needed for regulatory oversight work. Specific examples of this work include the OFR’s 

ongoing data collection of centrally-cleared repurchase agreements, as well as support for the 

Secured Overnight Financing Rate planned as an alternative to LIBOR. 

The OFR will continue to publish its statutorily-mandated Annual Report that assesses the state 

of the U.S. financial system and presents key findings from the OFR’s research. The OFR will 

also continue in to assist the FSOC Secretariat by providing data, analysis, and other resources 

needed for its annual report to Congress. High quality data, strong research expertise, and 

capable and flexible information technology (IT) are essential to continue to support these 

assessments. 

The OFR is implementing a broad human capital strategy to strengthen management 

accountability and employee engagement. In recognition that organizational excellence is 

necessary for the OFR to achieve its mission, work slated for FYs 2021 and 2022 includes a 
OFR - 7 

range of initiatives targeting this area. The OFR will continue work related to Federal Employee 

Viewpoint Survey results. Upcoming work will focus on internal communications, workforce 

planning, organizational performance management, enterprise risk management, and 

establishment of a new framework for enterprise-level strategic and tactical planning, among 

other areas. 

B –Budget and Performance by Budget Activity 

2.1.1 – Data Center Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $16,477 $17,833 $15,967 $5,849 $2,771 $3,576 $3,710 

Budget Activity Total $16,477 $17,833 $15,967 $5,849 $2,771 $3,576 $3,710 

Full-time Equivalents (FTE) 37 44 42 9 9 11 11 

Measure 

FY 2016 

 Actual 

FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2020 

Target 

FY 2021 

Target 

FY 2022 

Target 

Number of Legal Entity 

Identifiers (LEIs) Issued 

Cumulatively in the 

United States and 

Internationally 

464,412 587,941 1,300,832 1,487,695 1,733,473 I I I

Number of Times That 

Financial Data Standards 

are Incorporated in Rules 

and 

Regulations 

9 4 1 1 3 I I I

Percent of monitors updated 

or expanded during the 

reporting period 

N/A N/A N/A N/A 100 90 95 95

I = Performance Indicator 

Data Center Budget and Performance 

($3,710,000 from Assessments):

The Data Center seeks new ways to promote and share the OFR’s data and data analytic products 

with external stakeholders and advances the development and use of data standards to improve 

the quality and sharing of data across the regulatory system. The Data Center’s efforts are 

divided into two major focus areas: 1) Data Products, and 2) Data Strategy and Standards. 

Data Products 

The Data Products Team serves as the product integrator of the overall vision, management, and 

implementation of the data products program at the OFR. They serve as product owners in various 

cross-functional OFR teams—comprised of subject matter experts, engineers, and product 

designers—that facilitate issue resolution, promote enterprise-wide collaboration, and balance 

scope and resources. 

The Data Products Team was launched at the start of FY 2019 to provide industry liaison support 

for the OFR’s financial stability risk monitors. The team is maturing from a basic product 

promotion and support function to a unit that incorporates elements of data science in expanding 

the ability to gain deeper insight of data the OFR produces. This work includes developing a 

data science framework to define a path from conception to production for machine learning 
OFR - 8 

products, perform exploratory data analysis for the development of new data visualizations, and 

increase the interpretability of complex financial data. 

An OFR data product is a holistic asset whose primary function is to leverage data in a recurring 

and reproducible manner, to provide financial market transparency, analytical insights, or to 

make the organization’s work more efficient and effective. This holistic view encompasses 

functionality (the product features), technology that enables the product features, user experience

design that presents this functionality, and how the OFR attracts users and promotes product 

adoption. Data products also include offline experiences (i.e. training and press conferences), 

that are essential to delivering the products’ value, and automations that make OFR’s work more 

efficient and effective. Each data product meets OFR quality control, compliance, and records 

management standards. 

The OFR envisions its data products as high-quality tools for financial monitoring and related 

aims to be used by key stakeholders, such as the FSOC and its member agencies, and other 

stakeholders. Current tools include four online monitors (for more info see sub-section C), links 

to the global Legal Entity Identifier (LEI) system (a data standard that identifies parties to 

financial transactions), and an interagency data inventory, described in more detail below in subsection C on Evidence-Building Activity. In FY 2021, the OFR began phasing in another tool, 

the Financial Instrument Reference Database (FIRD). The FIRD establishes a set of granular 

data that are the basis for creating and describing financial instruments. The foundational 

component is a data dictionary that leverages an international standard for the development of 

financial messages. 

Data Strategy and Standards

The Data Strategy and Standards (DSS) team is the OFR’s principal unit for ensuring the OFR 

meets its standards mandates. To meet these mandates, DSS participates in domestic and 

international financial data standards organizations that meet the definition of a voluntary 

consensus standards organization, as established in Circular No. A-119 of the Office of 

Management and Budget. Standards for financial data benefit regulators and financial market 

participants by making data aggregation easier, improving analysis, and reducing data collection 

costs. 

While promotion of the LEI remains a foundational standards focus for the OFR, the DSS team 

continues to play a leading role in the development of international consensus for, and 

governance of, vital identifiers for products, transactions, and the data elements critical to 

derivatives market reporting and regulation. Throughout FYs 2021 and 2022, the team will also 

continue analyses to identify data standards gaps and the potential to fill them. Specific 

engagements include contributing to the International Standards Organization (ISO) 

development of the Unique Production Identifier for Over-The-Counter Derivatives in 

partnership with other FSOC members and integration of Critical Data Elements for Derivatives 

data harmonization into the ISO 20022 standard. 

The DSS team also leads the development of the FIRD and will conduct analysis and validation 

of open datasets for use in future phases of the FIRD. To assist the OFR’s partners in Treasury’s 

Office of International Financial Markets, the DSS team continues to engage in research and 

monitoring of emerging developments in the area of payments. 
OFR - 9 

The OFR monitors progress through the following key performance indicators:1

 Number of Legal Entity Identifiers (LEIs) Issued Cumulatively in the United States and 

Internationally – The LEI helps the financial industry, regulators, and policymakers trace 

exposures and connections across the financial system. It also generates efficiencies for 

financial companies in internal reporting; risk management; and in collecting, cleaning, and 

aggregating data. In addition, the LEI can ease companies’ regulatory reporting burdens by 

reducing overlap and duplication with respect to the multiple identifiers reporting firms must 

manage. The indicator developed for the LEI tracks the progress of industry’s use of the LEI 

over time. The Data Center monitors this indicator with the expectation that it will continue 

to rise over time. If that trend were to reverse, the Data Center would revisit its strategies for 

promoting the adoption of this important identifier. 

 Number of Times that Financial Data Standards are Incorporated in Rules and Regulations – 

This data point serves as an indicator of regulators’ awareness of the importance of data 

standards and the extent to which those standards are being adopted in rules and regulations. 

Similar to the indicator above, the Data Center monitors activity in this area to determine 

whether relevant pending rules and regulations incorporate financial data standards, as 

appropriate. 

During FY 2020, the number of LEIs issued continued its upward trend, increasing by 

approximately 16 percent from the prior year. The Data Center will continue its strategy of 

engagement with financial data standards-setting organizations. 

For FY 2020, the OFR saw an uptick in rules that incorporate use of financial data standards, 

with two final rules and a rule change that covered the LEI, among other matters. 

2.1.2 – Technology Center Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $32,132 $29,235 $23,530 $28,278 $35,739 $35,750 $37,541 

Budget Activity Total $32,132 $29,235 $23,530 $28,278 $35,739 $35,750 $37,541 

Full-time Equivalents (FTE) 61 63 52 47 47 60 66 

Technology Center Budget and Performance 

($37,541,000 from Assessments):The OFR Technology Center oversees OFR’s information 

technology systems and system security, including an information technology platform to 

support analysis of large-scale data sets. The Technology Center also acquires commercial, 

nonpublic, and proprietary data through procurements, provider agreements, and the OFR’s own 

collection activities. To advance Treasury’s strategic goal to promote financial stability, the 

Technology Center provides mission-critical technology resources needed to produce financial 

stability monitors, research and briefings for the FSOC and other stakeholders, and evaluations 

of financial stability policies. It is responsible for secure access to data sets, and maintenance of 

1

Note that these are not measures, but indicators because the OFR, through its leadership in standards and regulatory 

oversight bodies and provision of technical guidance to other regulators, can influence these metrics but cannot 

directly control them. 
OFR - 10 

data lineage, privacy, and governance. It provides data stewardship, onboarding, processing, 

storing, and archiving of data and work products. 

 

U.S. Centrally-Cleared Repurchase Agreement Data Collection 

In the fourth quarter of FY 2020, the OFR fully operationalized its new daily collection of 

repurchase agreement (repo) data. The OFR also began daily publication of prototype series on 

rates and volumes in three segments of repo markets. These series include information on rates 

and volumes in each segment, with detail available by tenor (the amount of time before that 

contract expires) or collateral. 

The Technology Center will continue to streamline the daily collection processes that include 

validation and transformation of the collected data to support business uses. Another key focus 

is to develop and implement preliminary and final versions of the data release, shifting 

production from the initial prototype. This budget request provides for the needed capacity and 

capabilities to support and mature this critical daily collection. In FY 2021, the OFR is 

establishing baseline experience with the data collection and series publication, which will 

inform the development of potential performance measures in FY 2022. 

 

Cloud Transition 

OFR’s mission requires the use of vast amounts of data to identify financial risks while reducing 

the burden of regulation and direct costs to the public. During the most recent technology 

refresh cycle, the OFR took the opportunity to reevaluate its information technology systems and 

services, taking into account risk management and compliance practices to ensure proper 

protection of all managed data assets. As a result of this evaluation, OFR's three-year strategy 

moves most IT services and infrastructure to the cloud by the end of FY 2022. OFR expects to 

spend an additional $1.3M to finish this work in FY 2021. The OFR has internal performance 

measures for this activity; however, they are not public because the measures contain sensitive 

information. 

2.1.3 – Research and Analysis Center Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $14,239 $15,605 $12,302 $8,238 $7,340 $13,290 $14,718 

Budget Activity Total $14,239 $15,605 $12,302 $8,238 $7,340 $13,290 $14,718 

Full-time Equivalents (FTE) 54 53 42 24 21 26 32 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Measure Actual Actual Actual Actual Actual Target Target Target 

Timeliness of 

responses to FSOC 

research and 

analysis requests % 

N/A N/A N/A N/A 90 90 95 95 
OFR - 11 

Research and Analysis Center Budget and Performance 

($14,718,000 from Assessments): 

The Research and Analysis Center conducts applied research and analysis and essential longterm research on systemic risk, macroprudential policy, and financial stability to support the 

stability of the U.S. financial system. The Center’s work aims to inform sound policy and 

develop tools for risk monitoring. Working closely with the FSOC, Treasury, the Financial 

Research Advisory Council, and other key stakeholders, the OFR collaboratively identifies 

important issues that need to be addressed. The OFR focuses its resources on delivering 

impactful results that identifies financial system fragilities and vulnerabilities, and the channels 

and sources of risk amplification through which vulnerabilities can affect financial stability. 

Supporting the FSOC and Congress with Timely and Relevant Research, Analysis, and 

Risk Monitoring Tools. 

The Research and Analysis Center contributes to nearly all of the OFR’s priorities. In particular, 

the Center is focused on engaging with FSOC and others to drive its research agenda and to help 

identify the tools needed for risk monitoring. 

Throughout FYs 2021 and 2022, the Research and Analysis Center will continue its direct work 

for the FSOC Secretariat, providing support for the FSOC’s annual report to Congress in the 

form of research, analysis, and other resources. The Center will contribute to the FSOC’s 

transition to an activities-based approach for the non-bank designation process and will continue 

to respond to specific requests for research and analysis . The Center also provides subjectmatter experts to FSOC committees and working groups, and routinely collaborates on policy 

evaluation and financial research with staff from FSOC member agencies. Staffers frequently 

make presentations of their research and analysis to FSOC committees, such as the Systemic 

Risk Committee. 

The Center will also continue to provide thought leadership, research, and analysis to enhance 

the OFR’s existing financial monitoring tools. An important initiative this year is the 

development of metrics for assessing the risks of central counterparties (entities that help 

facilitate trading in derivatives and equities markets) and the potential for contagion if a central 

clearing counterparty should default. 

2.1.4 – Operations and Support Services Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $32,026 $26,533 $24,226 $17,496 $17,237 $19,565 $19,302 

Budget Activity Total $32,026 $26,533 $24,226 $17,496 $17,237 $19,565 $19,302 

Full-time Equivalents (FTE) 56 59 49 25 25 31 36 

Operations and Support Services Budget and Performance 

($19,302,000 from Assessments): 

The category “Operations and Support Services” contains the activities of the Director’s Office, 

Operations, and Chief Counsel. The category includes support provided through a shared 

services model and reimbursable arrangements with Treasury’s Departmental Offices; personnel 
OFR - 12 

benefits services from the Office of the Comptroller of the Currency; and services from 

Treasury’s Bureau of the Fiscal Service Administrative Resource Center, including services 

related to human resources, procurement, travel, and financial management. 

The OFR has made organizational excellence a critical priority. Initiatives related to Federal 

Employee Viewpoint Survey results, internal communications, workforce planning activities, 

process improvements, organizational performance management, and enterprise planning 

frameworks are led by Operations and guided by the Director’s Office and Chief Counsel. 

In FYs 2021 and 2022, Operations will develop an enterprise risk management program and, in 

cooperation with Treasury’s Chief Risk Officer’s team, conduct an organizational risk 

assessment. Operations will also seek to improve efficiency and effectiveness of strategic and 

tactical planning and organizational performance measurement with a more integrated approach. 

C – Evidence-Building Activity 

The OFR’s overall function and purpose—on behalf of the FSOC—is to provide high-quality 

financial data and data-driven research and analysis to inform policymakers, regulators, financial 

market participants, and the American public about threats to the financial stability of the United 

States. In FY 2020, the OFR delivered a report to Congress covering macroeconomic, credit, 

market, liquidity, and funding risks; leverage in the financial system; potential financial firm 

insolvency and contagion; uncertainty around cybersecurity, natural disasters, the transition from 

LIBOR to alternative reference rates, the United Kingdom’s exit from the European Union; as 

well as an exploration of systemic risk in the information markets. Similar work assessing the 

state of the U.S. financial system will continue during FY 2022 and beyond.

OFR continues to fulfill its data-related mandates through an array of initiatives, including 

publication of a new daily data release on transactions in the $4 trillion market for centrally 

cleared repos, which provide funding to securities dealers and others. The data release improves 

transparency and risk monitoring of the market; the OFR will continue making enhancements to 

the data series into the next fiscal year and beyond. 

The OFR has also continued its work to provide data-driven tools for risk measurement and 

monitoring and make them available to the public. Current offerings include: 

 Bank Systemic Risk Monitor: 

This monitor presents key measures of systemic risks posed by the largest banks, including 

systemic importance scores for international and U.S. banks, the OFR's Contagion Index, and 

more.

 Financial Stress Index: 

The daily index supports the monitoring of stress in the financial system. It is constructed 

from 33 financial market indicators, such as yield spreads, valuation measures, and interest 

rates. 

 Interagency Data Inventory: 

The inventory is a product of the FSOC Data Committee that catalogs the data collected by 

FSOC member organizations, along with key metadata that describes each collection. The 

inventory may be used for identifying data gaps and for improving research and analysis to 

understand threats and vulnerabilities in the financial system. 
OFR - 13 

 Short-term Funding Monitor: 

This daily monitor provides new insights into short-term funding activities captured by 

repurchase rate agreements, the core of liquidity and maturity transformation in financial 

markets. It places these data in context with other data sources, such as primary dealer 

statistics and Treasury reference rates. 

 U.S. Money Market Fund Monitor: The monthly monitor converts data from a Security 

and Exchange Commission reporting form into a user-friendly format. Users can examine 

individual funds and the industry as a whole.



In FYs 2021 and 2022, the OFR will continue to produce and evaluate the development of new 

products, as appropriate. Additionally, refer to the Executive Summary for a discussion of 

Treasury-wide evidence-building functions. 

Section III – Additional Information 

A – Summary of Capital Investments 

The OFR has no capital investments. Capital investments that support OFR are included in the 

Departmental Offices plan. A summary of capital investment resources, including major IT and 

non-IT investments can be found at: 

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx


Department of the Treasury 

Financial Stability Oversight 

Council 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
FSOC - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

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

1.2 – Budget Adjustments Table ............................................................................................ 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ........................................................... 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals ............................................................................................................ 5

Section II – Annual Performance Plan and Report ................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Financial Stability Oversight Council .................................................................................. 6

2.1.1 – Financial Stability Oversight Council Resources and Measures .................................... 6

C – FDIC Reimbursement .......................................................................................................... 7

2.1.2 – FDIC Reimbursement Resources and Measures............................................................. 7

D – Evidence-Building Activity ................................................................................................. 7

Section III – Additional Information .......................................................................................... 8

A – Summary of Capital Investments ......................................................................................... 8

 
FSOC - 3 

Section I – Budget Request 

A – Mission Statement 

To identify risks to the financial stability of the United States, to promote market discipline, and 

to respond to emerging threats to the stability of the U.S. financial system. 

B – Summary of the Request 

The Financial Stability Oversight Council (FSOC or Council) is estimating a fiscal year 

(FY) 2022 funding level of $10.821 million, which is an increase of $0.370 million from the 

FY 2021 estimated funding level. This request includes $6.520 million for the FSOC Secretariat 

and the Office of the Independent Member with Insurance Expertise, and $4.301 million to 

reimburse the Federal Deposit Insurance Corporation (FDIC) for certain expenses as required by 

law. On March 31, 2021, the Council re-established the Hedge Fund Working Group to share 

data, identify risks and address potential issues related to hedge funds. The Council also 

committed to the coordination of regulators’ efforts to improve the measurement and 

management of climate-related risks in the financial system as the country transitions to a netzero carbon economy. 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Budgetary Resources Actual Estimate Estimate % Change 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting 

Collections Assessments 0 $8,831 0 $6,832 0 $9,627 NA 40.9% 

Interest 0 $65 0 $9 0 $60 NA 584.9% 

Recoveries 0 $282 0 $605 0 $420 NA -30.6% 

Restoration of Sequestration 

Rescission 0 $486 0 $525 0 $390 NA -25.7% 

Unobligated Balances from 

Prior Years 0 $6,876 0 $7,463 0 $5,205 NA -30.3% 

Total Revenue/Offsetting 

Collections 0 $16,539 0 $15,433 0 $15,701 NA 1.7% 

Expenses/Obligations 

FSOC 15 $4,865 18 $6,000 21 $6,520 16.7% 8.7% 

FDIC 0 $2,993 0 $4,451 0 $4,301 NA -3.4% 

Total Expenss/Obligations 15 $7,858 18 $10,451 21 $10,821 16.7% 3.5% 

Sequestration Reduction (525) (390) (552) 

Net Results 15 8,156 18 4,592 21 4,328 16.7% -5.7% 

1) The FSOC is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule and 

interim final rule governing the Assessments process: https://www.financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf 

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in Unobligated Balances from Prior 

Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 

3) The amounts of obligations, assessments, interest, and FTEs in the table above differ from the amounts in the 2022 President’s Budget . This 

difference is primarily due to adjustments for lower interest income and higher-than-anticipated recoveries as well as lags in hiring due to the 

COVID-19 pandemic and other factors in FY 2020 and FY 2021. 

 
FSOC - 4 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 Estimate 18 $10,451 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $233 

Pay Annualization (1.0% average pay raise) 0 $9 

Pay Raise (2.7% average pay raise) 0 $72 

FERS Contribution Increase 0 $14 

Non-Pay 0 $139 

Efficiency Savings 0 ($190) 

Subtotal Changes to Base 0 $43 

FY 2022 Current Services 18 $10,494 

Program Changes: 

Program Decreases 0 ($150) 

FDIC Cost Adjustment 0 ($150) 

Program Increases: 3 $477 

FTE Adjustment 3 $477 

FY 2022 Estimate 21 $10,821 

Note: The amounts of obligations and FTEs for 2021 in the table above differ from the amounts in the 2022 President’s Budget. 

This difference is primarily due to adjustments in anticipated spending for FSOC related to lags in hiring due to the COVID-19 

pandemic and other factors efforts. 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..........................................................+$233,000 / +0 FTE 

Pay Annualization (1.0%) +$9,000 / +0 FTE: 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$72,000 / +0 FTE: 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$14,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$139,000 / +0 FTE 

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

and equipment. 

Efficiency Savings........................................................................................-$190,000/ +0 FTE 

DO will achieve cost savings and efficiencies in contract services through more efficient contract 

oversight, consolidating contracts where appropriate, and partnering with other agencies and DO 

components to leverage common technology or administrative support needs. 

Program Decreases.........................................................................................-$150,000 / +0 FTE 

FDIC Cost Adjustment -$150,000 / +0 FTE 

Cost decrease for FDIC reimbursable expenses. FDIC reimbursable expenses for FY 2022 are 

estimated at a commensurate level with FY 2019, which reflects a slight decrease from FY 2021.
FSOC - 5 

Program Increases ......................................................................................+$477,000 / +3 FTE 

FTE Adjustment +$477,000 / +3 FTE 

The Secretariat expects to hire additional staff in FY 2021, bringing total Secretariat and Office 

of the Independent Member staff from its FY 2020 level of 15 onboards to 21 onboards. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 2,282 2,562 3,024 

11.3 - Other than full-time permanent 169 0 0 

11.5 - Other personnel compensation 66 174 206 

11.9 - Personnel Compensation (Total) 2,517 2,736 3,230 

12.0 - Personnel benefits 742 788 930 

Total Personnel and Compensation Benefits $3,259 $3,524 $4,160 

21.0 - Travel and transportation of persons 16 55 53 

25.1 - Advisory and assistance services 153 349 336 

25.2 - Other services from non-Federal sources 10 19 19 

25.3 - Other goods and services from Federal sources 4,498 5,480 5,270 

26.0 - Supplies and materials 245 1,012 973 

31.0 - Equipment 2 12 11 

Total Non-Personnel $4,923 $6,927 $6,661 

Total Obligations $8,182 $10,451 $10,821 

 

Full-time Equivalents (FTE) 15 18 21 

The amounts of obligations and FTEs for 2021 in the table above differ from the amounts in the 2022 President’s Budget. This difference is 

primarily due to adjustments in anticipated spending for FSOC related to lags in hiring due to the COVID-19 pandemic and other factors. 

D – Appropriations Language and Explanation of Changes 

The FSOC receives no annual discretionary appropriations from Congress. 

E – Legislative Proposals 

The FSOC does not have any legislative proposals at this time. 
FSOC - 6 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

The Council is chaired by the Secretary of the Treasury and consists of ten voting members and 

five nonvoting members who serve in an advisory capacity. The Council brings together the 

expertise of the federal financial regulators, an insurance expert appointed by the President, and 

state regulators. 

The Council’s three statutory purposes are to: 

1) identify risks to the financial stability of the United States that could arise from the material 

financial distress or failure, or ongoing activities, of large, interconnected bank holding 

companies or nonbank financial companies, or that could arise outside the financial services 

marketplace; 

2) promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in 

the event of failure; and 

3) respond to emerging threats to the stability of the U.S. financial system. 

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. 

B – Financial Stability Oversight Council 

($6,-520,000 from Assessments): 

There are no measures specified for managing Council performance. The FSOC’s annual reports 

and other public documents, as well as individual Council member agencies’ performance 

documents, provide information to the public relevant to the Council’s performance. 

Information on the Council is provided on www.treasury.gov, www.fsoc.gov, and member 

agency websites to provide transparency and accountability. 

2.1.1 – Financial Stability Oversight Council Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $7,157 $5,655 $4,966 $5,246 $4,865 $6,000 $6,520 

Budget Activity Total $7,157 $5,655 $4,966 $5,246 $4,865 $6,000 $6,520 

Full-time Equivalents (FTE) 22 17 13 14 15 18 21 

The amounts of obligations and FTEs for 2021 in the table above differ from the amounts in the 2022 President’s Budget. 

This difference is primarily due to adjustments in anticipated spending for FSOC related to slower-than-anticipated hiring efforts. 
FSOC - 7 

During 2020 the Council met a total of five times. During the year, member agencies provided 

updates on the impact of COVID-19 and steps taken by agencies in response to the pandemic. 

In March 2020, the Council approved by notational vote the final rule for assessments to fund the 

Financial Research Fund (FRF). The rule increased the consolidated assets under control for 

bank holding companies and nonbank financial companies supervised by the Board of Governors 

of the Federal Reserve System (the Board) to be subject to assessment from $50 billion to $250 

billion. 

On December 3, 2020, the Council published its annual report. The report analyzed the financial 

effects of the COVID-19 pandemic and the policy responses taken to mitigate its impact on the 

economy and the financial system, in addition the annual report described significant financial 

market and regulatory developments, potential emerging threats to U.S. financial stability, 

recommendations to promote U.S. financial stability, and the activities of the Council. 

C – FDIC Reimbursement 

($4,301,000 from Assessments):

Certain FDIC expenses are treated as expenses of the Council. By law, the Council’s expenses 

include reimbursement of certain reasonable implementation expenses incurred by the FDIC in 

implementing Orderly Liquidation Authority. The FDIC must periodically submit requests for 

reimbursement to the Chairperson of the Council, who shall arrange for prompt reimbursement 

to the FDIC. FDIC expenses are for rule writing and resolution planning. 

2.1.2 – FDIC Reimbursement Resources and Measures 

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $6,571 $5,126 $4,162 $4,301 $2,993 $4,451 $4,301 

Budget Activity Total $6,571 $5,126 $4,162 $4,301 $2,993 $4,451 $4,301 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

D – Evidence-Building Activity 

To ensure all research, recommendations, and decisions of the Council are evidence-based, the 

Council routinely uses a variety of data sources. These include commercially available products 

widely used throughout the financial services and markets, publicly available data from U.S. 

federal and state agencies, international governments, trade associations, academic and public 

policy groups, and non-public data from financial regulatory agencies. At the direction of the 

Council, member agency staff may also produce original research and analysis on specific 

financial and economic topics. 

Additionally, refer to the Executive Summary for a discussion of Treasury-wide evidencebuilding functions. 
FSOC - 8 

Section III – Additional Information 

A – Summary of Capital Investments 

The FSOC has no capital investments. Capital investments that support the FSOC are included in 

the Treasury Franchise Fund Plan. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at:

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports. 


Department of the Treasury 

Treasury Franchise Fund 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
TFF – 2 

Table of Contents 

Section I – Budget Request ......................................................................................... 3

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

B – Summary of the Request .................................................................................... 3

1.1 – Resource Detail Table ...................................................................................... 4

1.2 – Budget Adjustments Table ............................................................................... 4

C – Budget Increases and Decreases Description ..................................................... 5

1.3 – Object Classification (Schedule O) Obligations ........................................... 8

D – Appropriations Language and Explanation of Changes .................................... 8

E – Legislative Proposals .......................................................................................... 8

Section II – Annual Performance Plan and Report ................................................. 9

A – Strategic Alignment ........................................................................................... 9

B – Budget and Performance by Budget Activity .................................................... 9

2.1.1 – Treasury Shared Services Program Resources and Measures ...................... 9

Treasury Shared Services Programs Budget and Performance ................................. 9

2.1.2 – Centralized Treasury Administrative Services Resources and Measures 10

Centralized Treasury Administrative Services Budget and Performance ............... 10

2.1.3 – Administrative Services Resources and Measures ................................... 11

Administrative Services Budget and Performance ................................................. 11

2.1.4 – Information Technology Resources and Measures .................................. 13

Information Technology Services Budget and Performance .................................. 13

C – Changes in Performance Measures .................................................................. 14

D – Evidence-Building Activity ............................................................................. 14

Section III – Additional Information ...................................................................... 15

A – Summary of Capital Investments ..................................................................... 15

B – Treasury Franchise Fund Program Costs ......................................................... 16
TFF – 3 

Section I – Budget Request 

A – Mission Statement 

To assist customer agencies in meeting their mission by providing responsive, customer-focused, 

cost-effective administrative and information technology support services. 

B – Summary of the Request 

The Treasury Franchise Fund (TFF) supports effective administrative and information 

technology services through commitment to service, efficient operations, openness to change, 

and values-based behavior. The TFF achieves cost savings leveraging economies of scale which 

promote efficient use of resources by shared service providers. 

The TFF providers include Departmental Offices’ Treasury Shared Services Programs (TSSP), 

Departmental Offices’ Centralized Treasury Administrative Services (CTAS), and the Bureau of 

the Fiscal Service’s Administrative Resource Center (ARC). TFF shared service providers offer 

financial management, procurement, travel, human resources, information technology, and other 

administrative services to federal customers on a fully cost recoverable, fee-for-service basis. 

The TFF FY 2022 Congressional Budget Justification reflects revised estimates for FY 2021 

along with new funding estimates for FY 2022. The revised estimates in FY 2021 for ARC 

Administration (Admin) includes an operations and maintenance costs increase to support an 

expanded customer base. The revised estimates will also support ARC Information Technology’s 

(IT) continued modernization efforts of the bureau’s IT infrastructure and technology service 

delivery (to include cloud adoption and low-code platform solutions), implementing enterprisescale foundational and common technology services, and continuing to enhance IT portfolio 

management practices and the cybersecurity posture across the enterprise. The Centralized 

Treasury Administrative Services (CTAS) programs will reduce the FY 2021 operating levels to 

more accurately reflect the level of administrative support services provided for the Foreign 

Investment Risk Review Modernization Act (FIRRMA) initiatives, Departmental Offices (DO) 

Salaries and Expenses and Terrorism and Financial Intelligence offices. 

In FY 2022, the Treasury Shared Services programs (TSSP) will continue to support efforts in 

cybersecurity with the additional operations and maintenance costs transferred for initiatives 

developed under the Cybersecurity Enhancement Account (CEA). These cybersecurity 

initiatives will be deployed and implemented as a shared service provided to the Department of 

the Treasury (Treasury) bureaus. TSSP will also focus on system modernization investments, IT 

reporting through Technology Business Management (TBM) and continuous improvement of 

baseline level services support. 

In FY 2022, the US Department of Agriculture (USDA) customers are expected begin 

transitioning to ARC for financial management (FM) services. In addition, ARC will continue to 

progress through a strategic project to continue simplifying customer FM services, increase 

customer FM maturity and public trust, maximize ARC value, and further emphasize laws, 

regulations, and federal mandates. These initiatives will allow agencies to focus on mission 

activities and ensure cost sharing opportunities are accessible.
TFF – 4 

1.1 – Resource Detail Table 

Dollars in Thousands 

Treasury Franchise Fund FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Budgetary Resources Actuals Revised Estimate Estimate Change % Change 

Revenues/Offsetting 

Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Treasury Shared Services 

Program

 

287,914 

 

299,891 

 

314,318 

 

14,427 4.8% 

Centralized Treasury 

Administrative Services 

 

166,591 

 

135,203 

 

146,043 

 

10,840 8.0% 

Administrative Services 

188,832 

 

177,925 

 

201,008 

 

23,083 13.0% 

Information Technology 

Services 

 

195,408 

 

193,003 

 

195,710 

 

2,707 1.4% 

Recovery from Prior Years 

9,472 

 

24,016 

 

22,815 

 

(1,201) -5.0% 

Unobligated Balances from 

Prior Years 

 

211,208 

 

210,629 

 

193,244 

 

(17,385) -8.3% 

Total Revenues/Offsetting 

Collections $1,059,425 $1,040,667 $1,073,138 $32,471 3.1% 

Expenses/Obligations Treasury Shared Services 

Program 252 284,298 269 299,891 269 314,318 0 14,427 0.0% 4.8% 

Centralized Treasury 

Administrative Services 161 121,771 197 135,203 197 145,848 0 10,645 0.0% 7.9% 

Administrative Services 1,152 220,180 1,171 194,856 1,236 211,308 65 16,452 5.6% 8.4% 

Information Technology 

Services 504 222,547 517 217,473 517 221,670 0 4,197 0.0% 1.9% 

Totals Expenses/Obligations 2,069 $848,796 2,154 $847,423 2,219 $893,144 65 $45,721 3.0% 5.4% 

Net Results 2,069 $210,629 2,154 $193,244 2,219 $179,994 65 ($13,250) 3.0% -6.9% 

*The Financial Management Administrative Support Service and Shared Services Programs, as denoted in the President’s budget is also referred to as the 

Administrative Services and Treasury Shared Services Program, respectively. 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 President's Budget Estimate 2,112 $869,321 

Adjustments to FY 2021 President’s Budget 42 (21,898) 

 Administrative Initiatives Adjustments (CTAS) 0 (27,059) 

 Increased Personnel Resources/IT Support (ARC Admin/IT) 42 5,161 

FY 2021 Revised Estimate 2,154 $847,423 

Changes to Base: 

Maintaining Current Levels (MCLs): 20,192 

Pay Annualization (1.0% average pay raise) 667 

Pay Raise (2.7% average pay raise) 5,420 

FERS Contribution Increase 2,058 

Non-Pay 12,047 

Subtotal Changes to Base 0 20,192 

FY 2022 Current Services 2,154 $867,615 

Program Changes: 

Program Increases: 65 25,529 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (TSSP) 0 5,254 

 Systems Modernization and Program Support (TSSP) 0 2,108 

 Continuous Diagnostic and Mitigation (CDM) Licenses (TSSP) 0 1,184 

 Systems Modernization (CTAS) 0 5,662 

 Electric Vehicles and Associated Infrastructure (CTAS) 0 304 

Customer Growth (ARC Admin) 35 6,017 

FSSP Consolidation (ARC Admin) 30 5,000 

Subtotal Program Changes 65 $25,529 

Total FY 2022 Estimate 2,219 $893,144 
TFF – 5 

C – Budget Increases and Decreases Description 

FY 2021 Adjustments........................................................... -$21,898,000/ +42 FTE 

Centralized Treasury Administrative Services (CTAS) -$27,059,000 / -0 FTE 

In FY 2021, the adjustments for administrative support include the following: 

Administrative Support Reduction for FIRRMA -$20,632,000 / -0 FTE 

Reductions to the planned level of administrative support resulting in a decrease to 

administrative costs necessary to support the Foreign Investment Risk Review Modernization 

Act (FIRMMA) initiatives: 

 Case management (-$13,378,000) 

 Facilities (-$4,800,000) 

 Personnel (-$2,454,000) 

DO and TFI -$6,427,000, / -0 FTE 

Reductions in administrative support for DO that were realized in FY 2020 and carry through 

to FY 2021. This includes reduced level of support for initiatives within DO Salaries and 

Expenses and the Office of Terrorism and Financial Intelligence (TFI). 

Increased Personnel Resources/IT Support (ARC Admin/IT) +$5,161,000 / +42 FTE 

In FY 2021, the adjustments for the ARC Admin and IT budgets include the following: 

ARC Admin +$4,684,000 / +29 FTE 

Revised FY 2021 estimates includes adjustments for human resources staffing required to 

meet critical workforce demands of customers. Without these resources, customers will 

experience delays in hiring, impacting mission success. 

ARC IT +$477,000 / +13 FTE 

In FY 2021, new service offerings and systems were added, offset by the transition of the 

Oracle hosting contract to ARC Admin. The increase will support technology modernization, 

implementation of an on-premise cloud environment, and increased investment in Cyber 

Security measures that will protect the National Critical Financial Infrastructure. 

Maintaining Current Levels (MCLs)......................................... +$20,192,000 / +0 FTE 

Pay Annualization (1.0%) +$667,000 / +0 FTE: 

Funds are required for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$5,420,000 / +0 FTE: 

Funds are required for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$2,058,000 / +0 FTE 

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$12,047,000 / +0 FTE 

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

equipment. 
TFF – 6 

Program Increases.............................................................. +$25,529,044 / +65 FTE 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (O&M) (TSSP) 

+$5,253,742 / +0 FTE 

Treasury will increase TSSP by $5.26 million to support the transition of the operations and 

maintenance costs from CEA investments to TSSP. The total FY 2022 estimated spending 

transitioned into TSSP since FY 2020 will be $16.48 million including this increase. The FY 

2022 increase will support the operations and maintenance costs for the following initiatives: 

 Fiscal Service Trusted Internet Connection (TIC) (+$3,622,676) 

 Treasury Identity Enterprise Services (+$857,000) 

 Treasury Secured Data Network (+$592,226) 

 Threat Hunting Analysis (+$181,840) 

Systems Modernization and Program Support (TSSP) +2,108,498 / +0 FTE 

Treasury will increase spending to support the system modernization and enhancements across 

TSSP programs to include: 

 O&M costs for the TBM tool that was implemented in FY 2021 (+$1,198,000) 

 Enterprise Data Management Cloud Support (+$581,250) 

 Automation of the change management process (+$374,248) 

 Enhancements for the Equal Employment Opportunity complaint tracking system 

(+$336,000) 

Continuous Diagnostic and Mitigation (CDM) Licenses (TSSP) +$1,184,000 / +0 FTE 

The FY 2022 increase in costs for CDM licenses is $1.184 million for Phase II in support of the 

CEA O&M initiatives transitioning into TSSP. These licenses are provided by the Department of 

Homeland Security (DHS) with the costs allocated to the Treasury bureaus through the TSSP. 

The CDM Program enhances the overall security posture of the Federal Government by 

providing Federal agencies with capabilities to monitor vulnerabilities and threats to their 

networks in near real-time. This increased situational awareness allows agencies to prioritize 

actions to mitigate or accept cybersecurity risks based on an understanding of the potential 

impacts to their mission. Total spending for FY 2022 is estimated at $13.284 million. 

Systems Modernization (CTAS) +$5,662,000 / +0 FTE

IT Modernization investment of $5.7 million will support increase spending for critical lifecycle 

upgrades and enhancements to modernize the DO IT infrastructure and IT server replacements. 

The following projects are included in this initiative:

 End User Equipment Lifecycle – Asset refresh of end of life end equipment (i.e., laptops, 

desktops, zero clients, etc.) and migrate service 

 Telework Workforce Enhancements – Hardware and software hardware/software to support 

efficiency and mission achievement in telework paradigm. 

 Video Teleconferencing – Increased software licenses, support and services for DO web 

conferencing 

 Managed Remote Access - Transition from government owned and operated to managed 

service remote access for DO user community 

 Managed Desktop/Virtual Desktop Infrastructure (VDI) - Transition from government owned 

and operated virtual desktop infrastructure to managed service 

 IT Server Replacement - In FY 2022, Treasury will replace IT servers that have reached end 
TFF – 7 

of life. These servers support majority of IT operations and the daily workload within DO. 

By FY 2022, over 120 of these critical servers of will no longer receive vendor support and 

will no longer receive updates, which put critical IT components at risk of failure or breach. 

Cloud migration assessments for these servers have been conducted and results have helped 

to identify servers that can be moved to the cloud and replacement servers that support 

workloads not yet cloud ready. Re-capitalization of servers represents the majority of costs 

incurred, in addition to additional anticipated operational expenses associated with cloud 

computing. 

Electric Vehicle Fleet Management (CTAS) +$304,000 / +0 FTE 

In accordance with Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home and 

Abroad”, Treasury will support the Administration’s priority to develop a comprehensive plan to 

create good jobs and stimulate clean energy industries by revitalizing the Federal Government’s 

sustainability efforts. This includes Treasury’s commitment to use all available procurement 

authorities to augment its Departmentwide fleet management program with a continued focus on 

the purchase and/or leasing of electric vehicles (EV) and its essential infrastructure. 

Currently, DO has a total of 14 vehicles in its fleet, five are EVs. In FY 2022, this investment of 

$304,000 will fund the full conversion of its fleet and the purchase, installation, maintenance, 

and/or upgrade of infrastructure required to maintain an EV fleet management program. 

Customer Growth (ARC Admin) +$6,017,000 / +35 FTE 

Increase reflects operations and maintenance costs and provides cost sharing and avoidance 

opportunities for both the new and current agencies supported by ARC. In FY 2021, ARC 

expanded services with Corporation for National and Community Service (CNCS) and the 

Special Inspector General for Pandemic Recovery (SIGPR). In FY 2022, ARC will expand 

supported shared services transitions for the Office of Personnel Management (OPM) and limited 

new services to the Federal Emergency Management Administration (FEMA). 

Financial Shared Service Provider (FSSP) Consolidation (ARC Admin) +$5,000,000 / +35 FTE 

In FY 2021, portions of USDA’s shared service customer base will be merged into ARC 

operations as USDA is planning to discontinue their shared services operations in response to 

OMB M-19-16. ARC plans to maintain financial management services for current USDA and 

General Services Administration (GSA) customers. 
TFF – 8 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

Object Classification 

FY 2020 

Actual 

Obligations 

FY 2021 

Revised Estimated 

Obligations 

FY 2022 

Estimated 

Obligations 

11.1 - Full-time permanent 178,024 185,193 192,824 

11.3 - Other than full-time permanent 1,023 998 1,036 

11.5 - Other personnel compensation 7,075 5,258 5,487 

11.9 - Personnel Compensation (Total) 186,122 191,449 199,347 

12.0 - Personnel benefits 65,752 70,262 72,118 

Total Personnel and Compensation Benefits $251,874 $261,711 $271,464 

21.0 - Travel and transportation of persons 498 1,399 1,069 

22.0 - Transportation of things 47 5 5 

23.1 - Rental payments to GSA 30,438 32,328 33,200 

23.2 - Rental payments to others 50 544 543 

23.3 - Communication, utilities, and misc charges 79,340 87,103 88,492 

24.0 - Printing and reproduction 148 268 243 

25.1 - Advisory and assistance services 170,393 120,969 126,887 

25.2 - Other services from non-Federal sources 33,957 31,017 31,912 

25.3 - Other goods and services from Federal sources 144,287 147,544 155,220 

25.4 - Operation and maintenance of facilities 45 2,446 2,448 

25.7 - Operation and maintenance of equip 84,084 114,425 128,168 

26.0 - Supplies and materials 3,296 2,857 3,022 

31.0 - Equipment 46,491 43,770 49,434 

32.0 - Land and structures 2,989 1,037 1,037 

44.0 - Refunds 859 0 0 

Total Non-Personnel $596,922 $585,712 $621,680 

New Budgetary Resources $848,796 $847,423 $893,144 

FTE 2,069 2,154 2,219 

*Amounts include all budgetary resources. 

D – Appropriations Language and Explanation of Changes 

The TFF receives no annually appropriated resources from Congress. 

E – Legislative Proposals 

The TFF does not have legislative proposals. 
TFF – 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Alignment with the Treasury Strategic Plan 

In accordance with the Government Performance and Results Act Modernization Act (GPRAMA)

of 2010, the Department of the Treasury is currently developing the FY 2022 – 2026 

Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

The TFF is well positioned in FY 2022 to be a key federal resource. The TFF service providers 

aim to enhance federal mission effectiveness through increased use of cloud-based solutions, 

reduce cybersecurity risks, and build a modern Information Technology (IT) workforce. The TFF 

emphasizes this through a standardized “build once, use many” service model with a focus on 

providing economies of scale enabling agencies to concentrate on mission critical activities. 

B – Budget and Performance by Budget Activity 

2.1.1 – Treasury Shared Services Program Resources and Measures 

Dollars in Thousands 

Resource Level FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations 229,070 235,811 241,845 235,515 284,298 299,891 314,318 

Budget Activity Total $229,070 $235,811 $241,845 $235,515 $284,298 $299,891 $314,318 

Full-time Equivalents (FTE) 228 235 234 225 252 269 269 

*The FY 2016 - FY 2020 columns represent realized resources for full-time equivalents, reimbursables, and user fees. 

 Measure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Average Cost per FTE N/A N/A N/A 1,463.5 1,719.4 1,460.0 1,580.3 1,710.5 

Annual Effective Spend 

Rate N/A N/A N/A 97.1 98.4 96.0 96.0 96.0 

Customer Satisfaction N/A N/A N/A 75.0 90.0 80.0 80.0 80.0 

Treasury Shared Services Programs Budget and Performance 

($314,318,000 from offsetting collections): 

Treasury Shared Services Programs (TSSP) provides administrative and information technology 

services on a competitive basis, and also delivers outstanding customer service. TSSP supports 

the goals and objectives for the current Treasury Strategic Plan by allowing customers to 

maximize their operations support resources and the benefit from centralized approaches to 

program support and administration. 

Description of Performance 

TSSP measures focus on customer satisfaction and the value proposition of the services 

provided. 
TFF – 10 

The Current TSSP performance measures are: 

 Average Cost per FTE 

 Annual Effective Spend Rate 

 Customer Satisfaction 

In order to provide greater transparency into the value proposition of shared services, the average 

cost per FTE and annual effective spend rate measures have been identified as measures to 

demonstrate the value. As agencies budgets shrink, it becomes increasingly important to 

demonstrate clear insight into the current cost of shared services and to help customers assess the 

cost efficiency benefits of the shared approach. 

The annual effective spend rate provides insight to the financial management and oversight of 

the program. It measures how much of the resources collected from customers are being 

obligated for service delivery in the fiscal year. This measure captures the efficient use of 

resources by the service providers. In FY 2020, 98.4 percent of the funds collected from 

customers for the shared services was obligated which was above the 96 percent target rate set 

for the fiscal year. The target will remain at 96 percent for FY 2021 and FY 2022. 

In FY 2020, the survey results yielded a 90 percent overall customer satisfaction rating which is 

up from 75 percent in the prior year for services provided through the TSSP. Strategic 

partnership with TSSP governance councils, meeting monthly with Treasury budget directors 

and the use of the TSSP Roadshows provides expanded customer engagement opportunities to 

the various stakeholders to better communicate the expected changes to program budgets and the 

impact to their upcoming service level agreements. This level of transparency has contributed to 

the higher rating. The target for this measure is set at 80 percent for both FY 2021 and 2022. 

2.1.2 – Centralized Treasury Administrative Services Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020 

Actual

FY 2021 

Estimate 

FY 2022 

Estimate 

 Expenses/Obligations NA NA NA 136,565 122,034 135,203 145,848 

 Budget Activity Total $0 $0 $0 $136,565 $122,034 $135,203 $145,848 

 Full-time Equivalents (FTE) NA NA NA 196 161 197 197 

*The FY 2016 - FY 2020 columns represent realized resources for full-time equivalents, reimbursables, and user fees. 

Measure FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019 

Actual 

FY 2020 

Actual 

FY 2020

Target

FY 2021

Target

FY 2022 

Target 

Annual Effective Spend Rate N/A N/A N/A 97.8 94.3 96.0 96.0 96.0 

Customer Satisfaction N/A N/A N/A 75.0 75.0 80.0 80.0 80.0 

Centralized Treasury Administrative Services Budget and Performance 

($145,848,000 from offsetting collections): 

The Centralized Treasury Administrative Services (CTAS) program provides administrative 

support to offices within Treasury’s Departmental Offices. This support includes administrative 

functions such as financial management, travel, human resources, information technology, and 

facilities management. 
TFF – 11 

Description of Performance 

FY 2019 was the first year of inclusion CTAS program into the TFF. CTAS has identified the 

following performance measures: 

• Annual Effective Spend Rate 

• Customer Satisfaction 

In FY 2020, the annual effective spend rate was 94.3 percent, which was slightly below the set 

target rate of 96 percent. The customer satisfaction rate was baselined in FY 2019. Results from a 

survey released in FY 2020, garnered a 75 percent satisfaction rating for the overall program. 

The targets set for the annual effective spend rate and customer satisfaction measures are 

mirrored after the TSSP target to maintain consistency in overall financial management of the 

two shared services providers within Departmental Offices. The targets set in both FY 2021 and 

2022 is 96 and 80 percent, for the annual effective spend rate and customer satisfaction measures 

respectively. 

2.1.3 – Administrative Services Resources and Measures 

Dollars in Thousands

 Resource Level FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations 156,869 157,284 150,876 170,184 220,180 194,856 211,308 

Budget Activity Total $156,869 $157,284 $150,876 $170,184 $220,180 $194,856 $211,308 

Full-time Equivalents (FTE) 936 988 957 988 1152 1,171 1,236 

The FY 2016 - FY 2020 columns represent realized resources for full-time equivalents, reimbursables, and user fees. 

Measure

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual 

FY 2020

Target

FY 2021

Target

FY 2022 

Target 

Customer Unmodified Audit Opinions 

[%] NA NA 100 100 100 100 100 100 

Percentage of shared services service 

level agreement performance metrics 

met or

exceeded [%]

NA NA NA 89.4 86.7 94.0 94.0 94.0 

Customer Satisfaction with ARC 

Admin

Services [%]

NA NA NA 93.2 90.4 80.0 80.0 80.0 

Administrative Services Budget and Performance 

($211,308,000 from offsetting collections): 

ARC, as a critical strategic partner to OMB and Treasury, supports the Financial Management 

Line of Business, designated Federal Shared Services Provider by OMB; the Budget Formulation 

and Execution Line of Business, designated Federal Shared Service Provider by OMB; and 

Treasury's Human Resources Line of Business. 

ARC provides administrative services in the areas of financial management, human resources, 

procurement, and travel to our Federal customers to support core business activities. ARC’s 

services allow agencies to focus on their missions and avoid redundancies within administrative 

operations, creating cost avoidance across the Federal government, including more than 

$100,000,000 in FY 2020. Using shared services reduces the need for Treasury to maintain 
TFF – 12 

duplicative financial management systems, thereby promoting efficiency and cost savings while 

enhancing the quality, timeliness, and accuracy of financial management processes. ARC and 

Fiscal Service continue to focus on financial innovation and transformation. 

Description of Performance: 

In FY 2020, ARC continues to receive strong customer satisfaction scores, with 90.4 percent of 

customers being satisfied with ARC Administrative Services. ARC service lines of Financial 

Management, Human Resources, and Procurement all improved with their customer satisfaction 

percentages from 2019 to 2020. 

In FY 2020, ARC received 17 consecutive unmodified opinions on franchise operations and 

supported 31 customer clean audits meeting its performance target of 100 percent of customer 

unmodified audit opinions. ARC continues to gain public confidence in federal stewardship, 

operations, and accuracy of information shared through transparency information by meeting this 

metric consistently year after year. 

ARC supported the Coronavirus Aid, Relief, and Economic Security Act (CARES) by 

processing over 4,800 payments providing relief to taxpayers, American industry and small 

businesses and relief for state, local, and Tribal governments. Additionally, during the pandemic, 

ARC was able to continue hiring, implemented CARES Act employee benefits, and worked with 

regulatory agencies to adjust processes requiring non-digital signatures such as retirement 

packages. ARC continued to streamline its processes by implementing 66 robotic process 

automation bots into production, resulting in a cost avoidance of over $1.5 million and 10.75 

FTE. 

In FY 2021 and FY 2022, ARC is committed to Financial Management Quality Service 

Management Office (FM QSMO) readiness, continuing improvements to customer experience, 

increasing the number of streamlined processes, meeting or exceeding service level agreement 

metrics, using technology and automation to reduce manual work and provide increased 

economies of scale, and further improving the efficiency and effectiveness of its services. 
TFF – 13 

2.1.4 – Information Technology Resources and Measures 

Dollars in Thousands 

 Resource Level 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations 192,877 195,441 197,009 179,631 222,547 217,473 221,670 

Budget Activity Total 192,877 195,441 197,009 179,631 222,547 217,473 221,670 

Full-time Equivalents (FTE) 499 493 465 465 504 517 517 

*The FY 2016 - FY 2020 columns represent realized resources for full-time equivalents, reimbursables, and user fees

Information Technology Services Budget and Performance 

($221,670,000 from offsetting collections): 

ARC Information Technology Services (ARC IT) provides shared services to a variety of federal 

customers, delivering value through consolidated IT infrastructures and standardized IT service 

delivery in a modern, technically innovative, and secure environment. 

 

Description of Performance: 

In FY 2020, ARC IT exceeded its hosting performance target, percentage of time service is 

operational (uptime excluding planned maintenance), with 99.9 percent uptime. As 

modernization efforts advance within the Bureau, high availability (measured as percent uptime) 

proves to be crucial to perform the Bureau's functions. ARC IT also achieved its target by having 

2 engagements in strategic sourcing. These engagements allow the Bureau to realize certain 

economies of scale through leveraging shared services and Treasury-wide contracts. 

In FY 2021, ARC IT plans to continue modernizing the integration and delivery of technology 

solutions. ARC IT will implement an enterprise hosting strategy to provide a coordinated, 

standardized, and optimized set of platforms across multiple environments; implement a network 

architecture strategy to include Trusted Internet Connections migrations to co-location data 

centers, software defined networking, and redesign Wide Area Network; conduct a 

modernization study with the IT Hosting customers to determine a path forward for aging 

mainframe applications; and define a common, enterprise approach to provide access to data 

through Application Program Interfaces. 

Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actuals Target Target Target 

Fiscal IT Hosting – Percentage of Time 

Service is Operational (Uptime 

Excluding Planned Maintenance) 

99.8 99 99.8 99.6 99.9 99.0 Disc Disc 

Number of engagements in strategic 

sourcing, to include new IT customers, 

new scope of work for existing 

customers, or new FITARA compliant 

contracts available beyond Fiscal 

Service [#] 

1 2 1 1 3 2 Disc Disc 

Percentage of POA&Ms Scheduled for 

closure in last 30 days - closed early or 

on time 

N/A 69.6 90.0 N/A N/A Disc Disc Disc 

Percentage of IT Portfolio (TFF) 

Software and Hardware Currency N/A N/A N/A N/A N/A N/A B 

Percentage of On-Premise Target 

Service Level Agreements Met N/A N/A N/A N/A N/A N/A B 

*B- Baseline; Disc- Discontinued 
TFF – 14 

C – Changes in Performance Measures 

The following are the proposed changes in the TFF performance measures: 

D – Evidence-Building Activity 

As the shared services landscape evolves and expands to support the widening needs across the 

federal government, the TFF shifts to evidence based decision making for the management and 

oversight of the services provided. Using the policy analysis approach, the TFF issued a 

customer satisfaction survey for FY 2020 to a wide range of customers both internal and 

external. The TFF worked with the Office of Strategic Planning and Performance Improvement 

to develop a well-rounded survey tool that would give customers the opportunity to provide 

detailed feedback. Overall, the feedback was positive with TFF receiving an 85.1 percent 

satisfaction rating (average is based on results from TSSP, CTAS, and ARC FY 2020 surveys). 

The feedback received from the survey will give much needed insight that can be used by fund’s 

oversight body to have more substantive conversations with service providers to focus on the 

following: 

 Transparency efforts 

 Customer engagement efforts 

 Optimal service delivery model 

The TFF will continue to pursue the use of evidence and data necessary to make critical 

decisions about program operations, policies and the overall management of the shared services 

programs. Additionally, refer to the Executive Summary for a discussion of Treasury-wide 

evidence-building functions.

Current Performance Measures New Proposed Performance Measures 

Fiscal IT Hosting – Percentage of Time 

Service is Operational (Uptime Excluding 

Planned Maintenance) 

Percentage of IT Portfolio (TFF) Software and 

Hardware Currency (Measure) 

Indicates the percentage of IT portfolio 

Treasury Franchise Fund (TFF) software and 

hardware that has current vendor support and 

are not end-of-life 

Number of engagements in strategic 

sourcing, to include new IT customers, new 

scope of work for existing customers, or new 

FITARA compliant contracts available 

beyond Fiscal Service. 

Percentage of on-premise target service level 

agreements met (Measure) 

Indicates the percentage of service level 

agreement targets that are met or exceeded, 

where on-premise is defined by the 

technology infrastructure housed and 

managed onsite in ARC IT locations. 
TFF – 15 

Section III – Additional Information 

A – Summary of Capital Investments 

The TFF’s planned investments enhance the capabilities and capacity of our financial 

management shared services. Investing in service-oriented architecture will allow customers to 

streamline application connections resulting in benefits that include reducing development time, 

using industry development best practices for coding efforts, allowing real time processing of 

transactional data between systems, and independent communication between systems. This 

effort will also reduce redundancy, providing more flexible and efficient interfaces with 

customers' third-party applications. 

The TFF plans to expand the use of an enterprise-wide financial statement reporting tool and 

update operational (transactional) reporting and analytical tools in order to provide a more 

efficient interpretation of large volumes of data, long-term stability, and improved presentation 

and distribution capabilities. 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx. 

The Administrative Resource Center capital investments are contained within the Fiscal Service 

capital investment summary. The Treasury Shared Service Programs capital investments are 

contained within the Departmental Offices capital investment summary. 
TFF – 16 

B – Treasury Franchise Fund Program Costs 

This information is provided to fulfill requirements of Section 121 of the FY 2021 Financial 

Services and General Government appropriations bill. 

Treasury Franchise Fund – Treasury Shared Services Programs, FY 2020 Total Charges by Customer

FY 2020 TSSP Customers

Enterprise Business 

Solutions

Infrastructure 

Operations Cybersecurity

IT Strategy and 

Technology Management

Non-Information 

Technology Services Total

Alcohol Tobacco Tax and Trade Bureau $ 297,383.16 $ 589,629.08 $ 14,437.26 $ 15,583.31 $ 591,640.54 $ 1,508,673.36 

Bureau of Printing and Engraving $ 617,783.17 $ 3,509,865.76 $ 51,261.04 $ 55,330.22 $ 1,297,732.76 $ 5,531,972.95 

Bureau of the Fiscal Service $ 1,511,897.57 $ 533,151.92 $ 59,385.65 $ 64,099.77 $ 2,134,469.90 $ 4,303,004.80 

Consumer Financial Protection Bureau $ 430,099.27 $ - $ - $ - $ 97,257.69 $ 527,356.96 

DHS - Immigration & Customs Enforcement $ - $ - $ - $ - $ 68,390.78 $ 68,390.78 

DHS Office of Inspector General $ - $ - $ - $ - $ 8,484.81 $ 8,484.81 

DHS Customs and Immigration Service $ - $ - $ - $ - $ 44,465.75 $ 44,465.75 

DHS Headquarters $ - $ - $ - $ - $ 98,265.84 $ 98,265.84 

DHS U.S. Secret Service $ 1,187,434.58 $ - $ - $ - $ 101,239.51 $ 1,288,674.10 

Departmental Offices - CARES Administrative/Operations $ 2,254,078.66 $ - $ - $ - $ 68,531.22 $ 2,322,609.88 

Community Development Financial Institutions Fund $ 103,943.79 $ 257,915.16 $ 2,045.77 $ 2,208.16 $ 430,794.70 $ 796,907.57 

DC Pensions $ 25,491.10 $ 64,988.23 $ 496.83 $ 536.27 $ 76,187.59 $ 167,700.01 

Departmental Offices - Economic Stabiliazaion Fund $ 1,793,400.34 $ - $ - $ - $ 1,093,215.48 $ 2,886,615.82 

Federal Financing Bank $ 29,918.51 $ 479,684.93 $ 350.70 $ 378.54 $ 126,095.84 $ 636,428.53 

Financial Stability Oversight Council $ 285,725.55 $ 208,024.90 $ 379.93 $ 410.09 $ 91,451.99 $ 585,992.46 

Treasury Office of Financial Research $ 265,677.04 $ 5,265,743.70 $ 2,980.97 $ 3,217.61 $ 465,853.16 $ 6,003,472.48 

Treasury Office of Financial Stability $ 520,139.21 $ 51,757.18 $ 526.05 $ 567.81 $ 748,379.36 $ 1,321,369.62 

Treasury Office of Technical Assistance $ 18,033.62 $ 69,966.70 $ 350.70 $ 378.54 $ 169,607.94 $ 258,337.51 

Small Business Lending Fund Administration $ 4,089.73 $ 8,363.23 $ 204.58 $ 220.82 $ 110,343.87 $ 123,222.23 

Treasury Departmental Offices Salaries and Expenses $ 15,274,250.65 $ 2,833,445.21 $ 24,607.64 $ 26,561.03 $ 3,771,910.40 $ 21,930,774.92 

Treasury Executive Office of Asset Forfeiture $ 2,226,699.40 $ 102,600.76 $ 672.18 $ 725.54 $ 172,297.13 $ 2,502,995.01 

Departmental Offices - Terrorism and Financial Intelligence $ 2,123,015.44 $ 2,001,866.39 $ 14,232.68 $ 15,362.49 $ 1,310,682.29 $ 5,465,159.30 

Treasury Terrorism Risk Insurance Program $ 1,468.39 $ 3,112.49 $ 29.23 $ 31.55 $ 36,714.87 $ 41,356.53 

Department of Commerce $ 9,777,507.25 $ - $ - $ - $ 436,608.48 $ 10,214,115.73 

DOC - National Oceanic & Atmosphere Administration $ - $ - $ - $ - $ 34,589.51 $ 34,589.51 

DOC - International Trade Administration $ - $ - $ - $ - $ 18,437.64 $ 18,437.64 

DOD- Defence Security Corporation Agency $ - $ - $ - $ - $ 71,543.94 $ 71,543.94 

DOD - U.S. Air Force $ - $ - $ - $ - $ 140,670.86 $ 140,670.86 

Department of Energy $ - $ - $ - $ - $ 3,946.94 $ 3,946.94 

Department of Interior $ 98,345.55 $ - $ - $ - $ 4,207.19 $ 102,552.74 

DOJ - Drug Enforcement Agency $ - $ - $ - $ - $ 46,216.88 $ 46,216.88 

DOJ - Executive Office of Immigration Review $ - $ - $ - $ - $ 8,839.41 $ 8,839.41

DOJ - U.S. Marshal Service $ - $ - $ - $ - $ 28,878.95 $ 28,878.95 

DOJ Alcohol Tobacco Firearms and Explosives $ 819,244.60 $ - $ - $ - $ 73,699.71 $ 892,944.31 

Department of Labor $ 2,986,499.63 $ - $ - $ - $ 144,908.98 $ 3,131,408.60 

DOL - Bureau of Labor Statistics $ - $ - $ - $ - $ 12,666.51 $ 12,666.51 

DOL - Office of the Inspector General $ - $ - $ - $ - $ 6,584.01 $ 6,584.01 

DOT-Build America Bureau $ - $ - $ - $ - $ 14,397.12 $ 14,397.12 

DOT- Federal Transit Agency $ - $ - $ - $ - $ 9,999.31 $ 9,999.31 

Department of Education $ - $ - $ - $ - $ 509,204.94 $ 509,204.94 

Export Import Bank-Office of the Inspector General $ - $ - $ - $ - $ 2,633.60 $ 2,633.60 

Environmental Protection Agency $ - $ - $ - $ - $ 188,993.28 $ 188,993.28 

Federal Communications Commission $ 48,573.20 $ - $ - $ - $ 2,035.99 $ 50,609.19 

Federal Deposit Insurance Corporation $ 22,647.18 $ 96,000.00 $ - $ - $ 4,337.47 $ 122,984.65 

Federal Emergency Management Agency $ - $ - $ - $ - $ 52,214.19 $ 52,214.19 

Federal Housing Finance Agency $ - $ - $ - $ - $ 32,920.03 $ 32,920.03 

Financial Crimes Enforcement Network $ 108,534.40 $ 1,302,299.58 $ 7,890.81 $ 8,517.19 $ 336,044.44 $ 1,763,286.42 

Government Accountability Office $ 600,210.77 $ - $ - $ - $ 26,470.96 $ 626,681.73 

General Service Administration $ - $ - $ - $ - $ 68,876.46 $ 68,876.46 

HHS - Agency for Healthcare Research and Quality $ - $ - $ - $ - $ 2,630.83 $ 2,630.83 

HHS- Centers for Medicare and Medicaid Services $ - $ - $ - $ - $ 116,785.25 $ 116,785.25 

HHS- Headquarters $ - $ - $ - $ - $ 6,221.79 $ 6,221.79 

Housing and Urban Development $ 3,120,215.16 $ - $ - $ - $ 199,343.63 $ 3,319,558.79 

HUD - Office of Inspector General $ 19,642.69 $ - $ - $ - $ 2,794.80 $ 22,437.48 

Internal Revenue Service $ 30,995,893.25 $ 89,818,073.63 $ 2,347,808.21 $ 2,534,180.67 $ 32,354,117.32 $ 158,050,073.08 

Millennium Challenge Corporation $ - $ - $ - $ - $ 21,715.88 $ 21,715.88 

U.S. Mint $ 539,339.49 $ 2,823,720.32 $ 45,415.99 $ 49,021.18 $ 1,321,488.18 $ 4,778,985.17 

National Records and Archives Administration $ - $ - $ - $ - $ 25,674.85 $ 25,674.85 

National Transportation Safety Board $ - $ - $ - $ - $ 11,066.81 $ 11,066.81 
TFF – 17 

Treasury Franchise Fund – Treasury Shared Services Programs, FY 2020 Total Charges by Customer 

(continued) 

Treasury Franchise Fund – Centralized Treasury Administrative Services Programs, FY 2020 Total Charges 

by Customer 

FY 2020 TSSP Customers

Enterprise Business 

Solutions

Infrastructure 

Operations Cybersecurity

IT Strategy and 

Technology Management

Non-Information 

Technology Services Total

Office of the Comptroller of the Currency $ 3,482,635.23 $ 1,746,326.64 $ 107,081.21 $ 115,581.48 $ 1,953,446.47 $ 7,405,071.03 

Office of Government Ethics $ - $ - $ - $ - $ 2,634.99 $ 2,634.99 

Treasury Office of Inspector General $ 102,349.52 $ 130,761.03 $ 4,588.36 $ 4,952.59 $ 230,430.76 $ 473,082.26 

Office of Management and Budget $ - $ - $ - $ - $ 50,908.85 $ 50,908.85 

Peace Corps $ 135,826.55 $ - $ - $ - $ 5,401.81 $ 141,228.36 

Small Business Administration $ 68,407.36 $ - $ - $ - $ 48,716.70 $ 117,124.06 

Special Inspector General for Pandemic Releif $ 258,500.00 $ 117,049.00 $ - $ - $ 33,868.49 $ 409,417.49 

Special Inspector General for TARP $ 543,809.43 $ 434,069.96 $ 2,454.92 $ 2,649.79 $ 214,945.35 $ 1,197,929.45 

Centralized Treasury Administrative Services $ 1,065,138.84 $ 1,450,481.25 $ 5,406.67 $ 5,835.86 $ 472,988.01 $ 2,999,850.62 

TFF - Administrative Resources Center $ 1,410,102.21 $ 4,354,073.36 $ 110,115.86 $ 39,305.27 $ 744,671.22 $ 6,658,267.92 

Treasury Inspector General for Tax Administration $ 346,823.73 $ 1,475,492.66 $ 21,509.76 $ 23,217.24 $ 787,274.90 $ 2,654,318.29 

USAID $ 1,206,918.11 $ - $ - $ - $ 84,196.36 $ 1,291,114.47 

Grand Total 86,727,693.34 $ 119,728,463.10 $ 2,824,233.00 $ 2,968,873.02 $ 54,085,263.49 $ 266,334,525.95 $ 

FY 2020 CTAS Customers

Information 

Technology Services

Treasury Facilities 

and Operations 

Serivces

Financial 

Management Services

Budget and Travel 

Services

Human Resource 

Services

Privacy, 

Transparency and 

Records Services 

Other 

Administrative 

Services Total

Consumer Financial Protection Bureau $ 5,459.00 $ 732,926.82 $ - $ - $ - $ - $ 40,749.72 $ 779,135.54 

Departmental Offices - CARES Administrative/Operations $ - $ - $ - $ - $ - $ 101,625.00 $ - $ 101,625.00 

Community Development Financial Institutions Fund $ - $ 967,999.25 $ 524,869.30 $ 143,108.73 $ 190,054.88 $ - $ 87,611.90 $ 1,913,644.06 

DC Pensions $ 513,993.94 $ 683,987.63 $ - $ 189,018.06 $ 56,213.41 $ - $ 61,633.95 $ 1,504,846.99 

Departmental Offices - Economic Stabiliazaion Fund $ - $ - $ - $ - $ - $ 33,875.00 $ - $ 33,875.00 

Federal Financing Bank $ 2,816,744.79 $ 448,928.79 $ - $ 51,806.15 $ 77,628.05 $ - $ 145,680.25 $ 3,540,788.03 

Financial Stability Oversight Council $ 214,232.48 $ 345,503.45 $ - $ 165,380.70 $ 40,152.44 $ - $ 33,109.15 $ 798,378.22 

Treasury Office of Financial Research $ 25,000.00 $ 4,052,886.26 $ - $ 1,542,359.13 $ 273,036.59 $ - $ 242,460.84 $ 6,135,742.82 

Treasury Office of Financial Stability $ 356,018.79 $ 760,174.65 $ 199,830.26 $ 307,563.74 $ 53,536.59 $ 123,569.28 $ 85,065.04 $ 1,885,758.35 

Treasury Office of Technical Assistance $ 142,938.91 $ 725,631.36 $ - $ 2,501,499.28 $ 32,121.95 $ - $ 145,680.25 $ 3,547,871.76 

Small Business Lending Fund Administration $ 39,252.23 $ 120,698.51 $ 147,515.77 $ 53,341.94 $ 8,030.49 $ - $ 16,809.26 $ 385,648.19 

Treasury Departmental Offices Salaries and Expenses $ 14,942,919.30 $ 11,409,579.28 $ 1,156,518.92 $ 8,714,482.99 $ 1,715,847.56 $ 1,645,050.39 $ 1,645,779.37 $ 41,230,177.82 

Treasury Executive Office of Asset Forfeiture $ 963,858.06 $ 10,477,049.34 $ - $ 1,047,468.97 $ 72,274.39 $ - $ 527,199.52 $ 13,087,850.28 

Departmental Offices - Terrorism and Financial Intelligence $ 10,882,222.24 $ 6,976,116.48 $ 51,000.00 $ 6,642,469.77 $ 1,244,725.61 $ 741,518.75 $ 1,112,976.76 $ 27,651,029.61 

Treasury Terrorism Risk Insurance Program $ 49,892.70 $ 58,230.45 $ - $ 46,356.68 $ 10,707.32 $ - $ 7,131.20 $ 172,318.35 

Financial Crimes Enforcement Network $ 551,058.47 $ 738,567.26 $ - $ - $ - $ - $ 52,465.27 $ 1,342,091.00 

Office of the Comptroller of the Currency $ 19,680.66 $ 534.98 $ - $ - $ - $ - $ 1,528.11 $ 21,743.76 

Treasury Office of Inspector General $ 19,680.66 $ - $ - $ - $ - $ - $ 1,528.11 $ 21,208.77 

Special Inspector General for Pandemic Releif $ 40,030.00 $ 2,588.18 $ - $ 11,053.05 $ 6,692.07 $ - $ - $ 60,363.30 

Special Inspector General for TARP $ 1,265,753.72 $ 1,427,887.72 $ - $ 68,995.29 $ - $ 7,399.98 $ 121,230.42 $ 2,891,267.12 

TFF- Shared Services Program $ 5,967,001.91 $ 4,689,630.10 $ - $ 5,992,754.59 $ 615,670.73 $ 352,484.43 $ 759,982.30 $ 18,377,524.06 

Treasury Inspector General for Tax Administration $ 104,970.36 $ - $ - $ - $ - $ 6,578.00 $ 509.37 $ 112,057.73 

Grand Total $ 38,920,708.23 $ 44,618,920.52 $ 2,079,734.25 $ 27,477,659.05 $ 4,396,692.07 $ 3,012,100.83 $ 5,089,130.82 $ 125,594,945.77 
TFF – 18 

Treasury Franchise Fund – Administrative Resource Center, FY 2019 Total Charges by Customer 

F Y 2 0 19 A R C C us t o me rs

Financial 

M anag e me nt 

S e rvice s

F M Lo B F EES

Human 

Re s o urce 

S e rvice s

Pro c ure me nt 

S ervic es

Trave l 

S e rvice s

Inf o rma t io n 

Techno lo g y 

S ervic es

To tal

ACCESS BOARD $ 2 62 ,149 $ 10 0 ,719 $ 50 ,4 34 $ 24 ,26 7 $ 43 7,56 9 

ADMIN OFFICES OF THE US COURTS $ 76 ,3 28 $ 76 ,32 8 

ADMINISTRATION FOR CHILDREN AND 

FAMILIES $ 106 ,52 5 $ 2 ,6 6 1 $ 10 9 ,18 6 

AFRICAN DEVELOPMENT FOUNDATION $ 8 8 4,456 $ 3 00 ,54 9 $ 2 1,50 3 $ 1,2 06 ,50 8 

AGENCY FOR INTERNATIONAL 

DEVELOPMENT $ 8 6,374 $ 9 5,8 19 $ 18 2 ,19 3 

AGENCY FOR INTERNATIONAL 

DEVELOPMENT - OIG $ 99 ,4 19 $ 9 9,419 

ALCOHOL AND TOBACCO TAX AND TRADE 

BUREAU $ 8 0 2,356 $ 1,0 10,157 $ 8 91,9 34 $ 18 9,00 6 $ 2,8 93 ,4 53 

ALCOHOL TOBACCO FIREARMS AND 

EXPLOSIVES $ 9 72 ,9 16 $ 9 72,916 

ARCHITECT OF THE CAPITOL $ 6 0 ,3 84 $ 60 ,3 8 4 

ARMED FORCES RETIREMENT HOME $ 8 77,4 34 $ 1,171,872 $ 4 48 ,78 3 $ 13 ,34 9 $ 2,511,43 8 

BUREAU OF ENGRAVING AND PRINTING $ 2 ,0 57,0 69 $ 145,26 2 $ 2 ,2 0 2,33 1 

BUREAU OF THE FISCAL SERVICE $ 9 ,74 6 ,518 $ 4 ,9 56,474 $ 3,14 6,86 3 $ 4 52 ,29 8 $ 159 ,979 ,2 10 $ 178,28 1,36 3 

CDFI PROGRAM FUND $ 90 8 ,6 26 $ 172 ,2 88 $ 19 0 ,4 63 $ 15,02 8 $ 1,2 86 ,4 0 5

CENTER FOR DISEASE CONTROL $ 1,88 7,0 52 $ 1,8 8 7,0 52 

CHEMICAL SAFETY AND HAZARD BOARD $ 3 12 ,3 15 $ 33 3 ,9 24 $ 2 7,8 3 5 $ 674 ,0 74 

COMPTROLLER OF THE CURRENCY $ 12 4 ,9 28 $ 124 ,92 8 

CONSUMER FINANCIAL PROTECTION 

BUREAU $ 1,00 5,8 71 $ 2 ,9 0 5,3 83 $ 1,0 0 2,22 7 $ 8 79 ,44 7 $ 5,792 ,9 2 8 

CONSUMER PRODUCT SAFETY COMMISSION $ 6 26 ,759 $ 58 1,82 8 $ 46 ,03 2 $ 1,2 54 ,6 19 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE $ 54 0,88 7 $ 2 18 ,8 62 $ 19 1,9 58 $ 16 ,18 2 $ 96 7,8 8 9 

DC PENSIONS PROJECT OFFICE $ 2 ,157,89 5 $ 2 8 ,54 1 $ 4 0,542 $ 1,80 3 $ 1,6 28 ,08 3 $ 3,8 56 ,86 4 

DEFENSE HEALTH AGENCY $ 6 1,33 6 $ 6 1,3 3 6 

DEFENSE LOGISTICS AGENCY $ 2 99 ,778 $ 29 9 ,778 

DENALI COMMISSION $ 572 ,3 12 $ 86 ,9 57 $ 137,46 0 $ 16 ,99 3 $ 813 ,72 2 

DEPARTMENT OF AGRICULTURE $ 16 7,510 $ 167,510 

DEPARTMENT OF COMMERCE $ 9 5,8 19 $ 9 5,8 19 

DEPARTMENT OF DEFENSE $ 187,34 2 $ 18 7,3 4 2 

DEPARTMENT OF EDUCATION $ 2 30 ,6 16 $ 23 0 ,6 16 

DEPARTMENT OF ENERGY $ 152 ,19 5 $ 12 4 ,2 36 $ 2 76,43 1 

DEPARTMENT OF HEALTH & HUMAN 

SERVICES $ 2 30 ,6 16 $ 2 78 ,22 2 $ 508 ,8 3 8 

DEPARTMENT OF HOMELAND SECURITY $ 358 ,4 6 1 $ 187,34 2 $ 58 7,0 6 7 $ 1,132 ,8 70 

DEPARTMENT OF HOMELAND SECURITY - CIS $ 3 86 ,76 6 $ 38 6 ,76 6 

DEPARTMENT OF HOMELAND SECURITY - OIG $ 8 13 ,0 64 $ 8 6 ,2 39 $ 2 47,29 3 $ 3 43 ,12 9 $ 1,4 8 9,725 

DEPARTMENT OF HOUSING AND URBAN 

DEVELOPMENT $ 17,79 5,6 02 $ 2 30 ,6 16 $ 12,34 1,99 7 $ 2,18 7,0 40 $ 2,520 ,79 8 $ 3 5,0 76 ,0 53 

DEPARTMENT OF JUSTICE $ 11,4 17 $ 11,417 

DEPARTMENT OF JUSTICE 

JMD/OCIO/EGSS/BOG $ 2 48 ,4 72 $ 24 8 ,4 72 

DEPARTMENT OF LABOR $ 10 5,3 28 $ 2 82 ,79 8 $ 38 8 ,12 6 

DEPARTMENT OF STATE $ 2 31,9 88 $ 19 1,78 4 $ 42 3 ,772 

DEPARTMENT OF THE INTERIOR $ 6 93 ,56 5 $ 12 4 ,2 36 $ 817,80 1 

DEPARTMENT OF TRANSPORTATION $ 2 30 ,6 16 $ 23 0 ,6 16 

DEPARTMENT OF VETERANS AFFAIRS $ 158 ,9 98 $ 8,60 2 $ 16 7,6 0 0 

DEPARTMENT OF VETERANS AFFAIRS - OIG $ 2,782 ,8 77 $ 2 ,78 2 ,8 77 

DEPARTMENT OF VETERANS AFFAIRS - TAC $ 14 5,2 62 $ 571,612 $ 716 ,8 74 

ELECTION ASSISTANCE COMMISSION $ 3 72 ,0 62 $ 13 7,4 73 $ 65,69 2 $ 575,2 2 7 
TFF – 19 

Treasury Franchise Fund – Administrative Resource Center, FY 2019 Total Charges by Customer 

(continued) 

F Y 2 0 19 A R C C us t o me rs

Financial 

M anag e me nt 

S ervice s

F M Lo B F EES

Huma n 

Re s o urc e 

S e rvic e s

Pro c ure me nt 

S ervice s

Trave l 

S e rvice s

Inf o rma t io n 

Techno lo g y 

S e rvic es

To tal

ENVIRONMENTAL PROTECTION AGENCY $ 9 5,8 19 $ 9 5,8 19 

EXECUTIVE OFFICE OF THE PRESIDENT $ 1,2 3 9,578 $ 2 80 ,0 73 $ 3 2 5,32 1 $ 1,8 44 ,9 72 

FARM CREDIT ADMINISTRATION $ 44 7,0 63 $ 68 ,16 5 $ 18 2,24 2 $ 6 97,4 70 

FARM CREDIT SYSTEM INSURANCE 

CORPORATION $ 213 ,719 $ 2 ,0 93 $ 5,0 54 $ 22 0,86 6 

FEDERAL EMERGENCY MANAGEMENT 

AGENCY $ 13,818 $ 13,818 

FEDERAL HOUSING FINANCE AGENCY $ 96 7,0 39 $ 188 ,3 10 $ 2 18 ,59 7 $ 1,3 73,94 6 

FEDERAL HOUSING FINANCE AGENCY - OIG $ 3 6 6,68 1 $ 2 64 ,9 4 3 $ 184 ,2 6 1 $ 76,90 3 $ 8 92 ,78 8 

FEDERAL LABOR RELATIONS AUTHORITY $ 49 9,529 $ 35,70 0 $ 55,90 1 $ 591,13 0

FEDERAL MARITIME COMMISSION $ 3 6 5,42 5 $ 110 ,0 0 0 $ 79,177 $ 27,20 2 $ 58 1,8 0 4 

FEDERAL MEDIATION & CONCILIATION 

SERVICE $ 3 2 6,36 1 $ 53 ,3 33 $ 52 ,9 76 $ 4 32 ,6 70 

FEDERAL MINE SAFETY AND HEALTH REVIEW 

COMMISSION $ 3 54,94 5 $ 13 0,18 8 $ 14,64 7 $ 28 ,2 4 8 $ 528 ,0 2 8 

FEDERAL TRADE COMMISSION $ 554 ,4 00 $ 12 3 ,2 92 $ 56,20 8 $ 733 ,9 0 0 

FINANCIAL CRIMES ENFORCEMENT 

NETWORK $ 6 0 2,188 $ 2 17,54 1 $ 8 65,566 $ 6 7,3 95 $ 2 ,0 3 5,08 1 $ 3,78 7,771 

FOOD AND DRUG ADMINISTRATION $ 53 7,4 37 $ 53 7,4 37 

GENERAL SERVICE ADMINISTRATION $ 4 1,3 3 2 $ 4 1,3 3 2 

GULF COAST ECOSYSTEM RESTORATION 

COUNCIL $ 28 9,115 $ 74 ,0 8 3 $ 75,06 9 $ 21,777 $ 46 0,04 4 

INTER AMERICAN FOUNDATION $ 66 2,254 $ 52 9,00 3 $ 30 ,8 2 7 $ 1,2 22 ,0 8 4 

INTERNAL REVENUE SERVICE $ 1,16 7,554 $ 8 ,4 75 $ 1,176,02 9 

MERIT SYSTEMS PROTECTION BOARD $ 576,709 $ 30 ,18 2 $ 55,0 0 6 $ 6 6 1,8 97 

NATIONAL AERONAUTICS AND SPACE 

ADMINISTRATION $ 16 2,706 $ 12 4,23 6 $ 4 92 ,8 2 9 $ 779,771 

NATIONAL ARCHIVES & RECORDS 

ADMINISTRATION $ 3 ,79 4,53 7 $ 3,13 4,416 $ 524 ,3 41 $ 2 81,68 0 $ 7,734 ,9 74 

NATIONAL CAPTIAL PLANNING COMMISSION $ 2 33 ,8 15 $ 16 ,54 1 $ 7,16 1 $ 257,517 

NATIONAL MEDIATION BOARD $ 3 0 5,958 $ 147,48 2 $ 4 7,6 50 $ 50 1,0 9 0 

NATIONAL SCIENCE FOUNDATION $ 13 9,09 4 $ 30 ,58 4 $ 169 ,6 78 

NUCLEAR REGULATORY COMMISSION $ 1,6 9 2,077 $ 4 1,3 3 2 $ 2 9 1,8 76 $ 2,02 5,2 85 

OCCUPATIONAL SAFETY AND HEALTH 

REVIEW COMMISSION $ 2 92 ,3 48 $ 13,88 6 $ 2 5,6 74 $ 3 31,90 8 

OFFICE OF FINANCIAL STABILITY $ 30 8,728 $ 8 5,310 $ 70 ,4 30 $ 12,773 $ 4 77,2 41 

OFFICE OF GOVERNMENT ETHICS $ 3 74,68 5 $ 2 25,139 $ 144 ,190 $ 9,90 2 $ 753 ,9 16 

OFFICE OF PERSONNEL MANAGEMENT $ 3 56,163 $ 4 1,3 3 2 $ 3 97,4 9 5 

OFFICE OF TECHNICAL ASSISTANCE $ 88 8,506 $ 2 8 ,74 6 $ 3 9,358 $ 97,09 3 $ 1,053 ,70 3 

OFFICE OF THE INSPECTOR GENERAL $ 3 51,2 20 $ 52 0,166 $ 16 9 ,2 92 $ 70,179 $ 1,110,857 

RAILROAD RETIREMENT BOARD $ 6 ,4 47 $ 6 ,4 47 

SECURITIES AND EXCHANGE COMMISSION $ 33 7,6 09 $ 7,73 0 $ 3 45,3 3 9 

SMALL BUSINESS ADMINISTRATION $ 6 7,4 75 $ 6 7,4 75 

SOCIAL SECURITY ADMINISTRATION $ 6 7,4 75 $ 6 94 ,6 2 6 $ 762 ,10 1 

SPECIAL INSPECTOR GENERAL - TARP $ 378 ,8 69 $ 3 55,92 1 $ 256 ,19 4 $ 84 ,9 78 $ 22,928 $ 1,098,890 

TREASURY DEPARTMENTAL OFFICES $ 13,971 $ 3,83 9 ,8 28 $ 3,853 ,79 9 

TREASURY EXECUTIVE OFFICE FOR ASSET 

FORFEITURE $ 194 ,0 23 $ 5,538 $ 199 ,56 2 

TREASURY FRANCHISE 

FUND/ADMINISTRATIVE SERVICES $ 15,10 2 ,3 27 $ 15,102 ,3 2 7 

TREASURY FRANCHISE FUND/INFORMATION 

TECHNOLOGY $ 1,0 92 ,14 7 $ 1,0 6 9,014 $ 1,166 ,152 $ 113 ,0 72 $ 3 ,4 40 ,3 8 5 

TREASURY FRANCHISE FUND/SHARED 

SERVICES PROGRAM $ 3 ,56 9,46 5 $ 95,89 2 $ 5,12 5,56 8 $ 1,22 3,94 4 $ 6 05,0 4 2 $ 6,24 0 ,0 95 $ 16,86 0,00 6 

TREASURY INSPECTOR GENERAL FOR TAX 

ADMINISTRATION $ 6 10 ,2 44 $ 1,4 51,2 8 3 $ 76 6,711 $ 3 92 ,4 55 $ 3 ,2 20 ,6 9 3 

TRUST FUND - BLACK LUNG DISABILITY $ 75,93 5 $ 75,9 3 5 

TRUST FUND - FEDERAL DISABILITY $ 2 10 ,2 63 $ 2 10,26 3 

TRUST FUND - FEDERAL HOSPITAL 

INSURANCE $ 2 77,94 7 $ 2 77,9 47 
TFF – 20 

Treasury Franchise Fund – Administrative Resource Center, FY 2019 Total Charges by Customer 

(continued) 

F Y 2 0 19 A R C C us t o me rs

Financial 

M anag e me nt 

S ervices

F M Lo B F EES

Huma n 

Re s o urc e 

S ervices

Pro c ure ment 

S e rvic e s

Trave l 

S e rvic es

Inf o rma t io n 

Techno lo g y 

S e rvic e s

To tal

TRUST FUND - FEDERAL OLD AGE & 

SURVIVORS $ 2 10,2 6 3 $ 2 10 ,2 6 3 

TRUST FUND - FEDERAL SUPPLEMENT 

INSURANCE $ 2 77,94 7 $ 2 77,9 4 7 

TRUST FUND - OIL SPILL LIABILITY $ 16 5,0 0 0 $ 16 5,0 00 

TRUST FUND - UNEMPLOYMENT $ 311,2 4 4 $ 311,2 4 4 

U.S. DEPARTMENT OF COMMERCE OFFICE OF 

INSPECTOR GENERAL $ 75,0 0 0 $ 75,0 00 

UNITED STATES MARSHALS SERVICE $ 11,2 19 $ 11,219 

UNITED STATES MINT $ 8 ,3 45,811 $ 2,9 16 ,0 73 $ 2,19 0 ,754 $ 215,03 0 $ 2 7,14 5 $ 13 ,6 94 ,8 13 

US COURT OF APPEALS FOR VETERANS $ 2 79 ,478 $ 11,578 $ 13 ,44 4 $ 3 0 4 ,500 

US DEPARTMENT OF JUSTICE $ 125,59 3 $ 125,59 3 

US TAX COURT $ 15,0 0 0 $ 1,0 0 0 $ 1,0 0 0 $ 17,0 0 0 

USDA FOOD AND NUTRITION $ 9 3 5,8 0 5 $ 9 35,80 5 

USDA OCIO INTERNATIONAL TECHNOLOGY 

SERVICES $ 1,4 8 4 ,0 9 9 $ 1,4 84 ,0 99 

USDA OFFICE OF INSPECTOR GENERAL $ 59 ,52 1 $ 59 ,52 1 

Gra nd To t a l $ 7 2 ,8 0 7 ,9 19 $ 3 ,5 0 0 ,8 0 7 $4 6 ,4 2 1,7 2 9 $ 19 ,2 8 9 ,9 6 2 $ 12 ,4 7 0 ,7 9 5 $ 19 2 ,15 6 ,6 3 7 $ 3 4 6 ,6 4 7,8 4 9 


Department of the Treasury 

Treasury Executive Office of 

Asset Forfeiture 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2022 
TEOAF – 2 

Table of Contents

Section I – Purpose........................................................................................................................ 3

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

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table .......................................................................................... 8

1.2 – Obligations Detail Table ............................................................................................... 9

1.3 – Object Classification (Schedule O) Obligations ........................................................... 9

E – Legislative Proposals ............................................................................................................ 9

Section II – Annual Performance Plan and Report ................................................................. 10

A – Strategic Alignment ........................................................................................................... 10

B – Budget and Performance by Budget Activity .................................................................... 10

2.1.1 Treasury Forfeiture Fund Resources and Measures ......................................................... 10

D– Evidence-Building Activity ................................................................................................ 11

Section III – Additional Information ........................................................................................ 11

A – Summary of Capital Investments ....................................................................................... 11
TEOAF – 3 

Section I – Purpose 

A – Mission Statement 

To affirmatively influence the consistent and strategic use of asset forfeiture by law enforcement 

bureaus that participate in the Treasury Forfeiture Fund (TFF or the Fund) to disrupt and 

dismantle criminal enterprises. 

B – Summary of the Request 

The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Fund, which is the 

receipt account for deposit of non-tax forfeitures made pursuant to laws enforced or administered 

by participating Treasury and Department of Homeland Security (DHS) bureaus. Principal 

revenue-producing bureaus include U.S. Customs and Border Protection (CBP), U.S. 

Immigration and Customs Enforcement (ICE), the Internal Revenue Service (IRS), the U.S. 

Secret Service (USSS), the U.S. Coast Guard (USCG), and Alcohol and Tobacco Tax and Trade 

Bureau (TTB), among others. The Fund is a special fund, defined as a Federal fund account for 

receipts earmarked for specific purposes and the expenditure of those receipts. The law (31 

U.S.C. 9705) allows TEOAF to use the funds for payment of all proper expenses of seizure or 

the proceedings of forfeiture and sale. 

Revenues deposited in the Fund can be allocated and used as the result of a permanent indefinite 

appropriation provided by Congress. A forfeiture process begins once currency or property is 

seized. Seized currency is deposited into a suspense account (holding account) until forfeited. At 

that time, the forfeited amount is transferred (deposited) to the Fund as revenue. Forfeited 

properties are usually sold, and the proceeds are also deposited into the Fund as revenue. This 

revenue represents budget authority for meeting obligations and expenses of the program. 

Expenses of the Fund are set in a relative priority so that operating costs are met first and may 

not exceed revenues. 

 Mandatory expenses represent operating costs of the Fund, including storing and 

maintaining seized and forfeited assets, valid liens and mortgages, investigative expenses 

incurred in pursuing a seizure, information and inventory systems, remissions, victim 

restoration, and certain costs of local police agencies incurred in joint law enforcement 

operations. Following seizure, equitable shares may be paid to state and local law 

enforcement agencies that contributed to the seizure activity at a level proportionate to their 

involvement. 

 Secretary’s Enforcement Fund (SEF) expenses are funded from revenue from equitable 

shares received from Department of Justice (DOJ) or U.S. Postal Service (USPS) forfeitures. 

These shares are proportionate to Treasury’s participation in the overall investigative effort 

that led to a DOJ or USPS forfeiture. SEF revenue is available for Federal law enforcementrelated purposes of any bureau participating in the Fund. 

 Strategic Support authority, established in 31 U.S.C. 9705(g)(4)(B), allows TEOAF to fund 

priority Federal law enforcement initiatives with remaining unobligated balances at the close 

of the fiscal year, after an amount is reserved for the next fiscal year’s operations. 

FY 2020-2021 Case Highlights: The following case highlights are intended to provide examples 

of the types of investigative cases worked by the Fund’s law enforcement bureaus during 
TEOAF – 4 

FY 2020-2021 that resulted in the seizure and forfeiture of assets. Such cases as those profiled 

below are consistent with the strategic mission and vision of the Fund, which seeks to use highimpact asset forfeiture in investigative cases to disrupt and dismantle criminal enterprises. 

 Airbus Has Entered into a Three-year Deferred Prosecution Agreement (DPA) with 

DOJ Resulting in a $55 million Forfeiture in a Foreign Bribery and ITAR Case 

Airbus, a France based aerospace company, entered into a three year DPA with the U.S. 

Department of Justice. As part of the DPA, Airbus agreed to pay the U.S. Government $527 

million dollars for Foreign Corrupt Practice Act (FCPA) and International Traffic in Arms 

Regulation (ITAR) violations. They also agreed to a civil forfeiture of approximately $55 

million dollars for violations tied to ITAR related conduct. The DPA was a part of a $4 

billion-dollar global settlement with the US, France, and the UK to resolve charges that 

Airbus violated the anti-bribery provisions of the FCPA. Additionally, Airbus was charged 

with conspiracy to violate the Arms Export Control Act and the ITAR. The investigation was 

conducted by ICE’s Homeland Security Investigations (HSI). 

 HSBC pays penalty and forfeits $71.850 million after helping to hide over $1 billion in 

U.S. clients’ assets from the IRS 

HSBC Switzerland, a private bank headquartered in Geneva, entered into a DPA with the 

U.S. Department of Justice, admitting to conspiring with their U.S. accountholders to hide 

their assets abroad to evade U.S. taxes. According to the DPA, HSBC Switzerland agreed to 

pay $192.35 million in three parts. The first part was $60.6 million to the IRS as restitution 

for unpaid taxes on the undeclared assets. Secondly, the bank forfeited $71.850 million, 

which represented gross fees it charged clients, and finally, it agreed to pay a $59.9 million 

penalty. The investigation was conducted by IRS Criminal Investigations. 

 Border Patrol Bike Unit Arrests Two Men Smuggling 165 Pounds of Methamphetamine 

through Drainage Tunnel 

In January 2020, agents from the Nogales Border Patrol Bike Unit received intelligence that 

narcotics were being smuggled though storm drains that originate in Mexico and extend 

approximately 20 miles into the United States. Based off the intelligence, agents dropped into 

the tunnel and located two suspects floating 70 packages through the storm drain. Agents 

observed them pulling the packages through grates on the Mexico side into the United States 

and stuffing the packages into duffle bags. After apprehending the two men, agents 

determined through interviews that there was another individual waiting for the narcotics in a 

car, which they quickly located. 

COVID 19 Related Case Highlights 

 Homeland Security Investigations Operation Stolen Promise Targets Counterfeit 

Vaccines and Treatments for COVID-19 

Since April 2020, ICE’s HSI Cyber Crimes Center (C3) and Intellectual Property Rights 

(IPR) Center have been successfully targeting online fraud schemes and the sale of illicit 

COVID 19 vaccines and treatments using illicit websites and dark net marketplaces. As of 

March 1, 2021, using advanced analytical tools, attribution tools, cyber threat intelligence 

tools, and online undercover activities, ICE agents have initiated 123 criminal investigations, 

disrupted 378 COVID-19 fraud websites and 11 COVID-19 counterfeit vaccines and 

treatments websites. Case highlights include: 

 In December 2020, HSI New York and HSI Baltimore, with assistance from C3 and the 

IPR Center, executed seizure orders for websites GRASSEPHARM[.]COM, 
TEOAF – 5 

mordernatx.com and regeneronmedicals.com. These sites purported to belong to biotech 

companies developing treatments for COVID-19 virus but in reality, were spoof/ 

phishing sites designed to collect personal identifiable information (PII) of individuals 

visiting the site. Currently, the site visitors see a message informing them that these sites 

have been seized by the federal government; 

 In February 2021, HSI Baltimore agents arrested three subjects for violations of Wire 

Fraud in connection to the creation of spoof/fraudulent COVID-19 vaccine website and 

the illegal sale of a COVID-19 vaccine. They also seized Modernatx[.]shop, a 

spoof/fraudulent website offering the sale of COVID-19 vaccines. A search warrant was 

also executed at a residence of a subject who accepted payment for fraudulent COVID-19 

vaccines. The subject agreed to cooperate with HSI and identified other individuals who 

orchestrated the fraud;

 In March 2021, HSI Baltimore seized another spoof/ phishing website 

“remdesivirmx.com,” which purported to sell and distribute Remdesivir, an antiviral drug 

approved for COVID-19 treatment. 

 USSS San Antonio obtains $5.250 million in a COVID-19 fraud investigation 

In April 2020, USSS San Antonio Field Office initiated an investigation involving the $5.25 

million deposit related to the purchase of 3M N95 Masks by a medical supply company Med 

Tech LLC. The agents have determined that the suspect supplier was not a verified 

distributor of N95 masks and had no association with 3M. After receiving the $5.25 million 

deposit, subjects of the investigation transferred out $520,000 to an account that supposedly 

belonged to a “mask supplier”; but in reality, belonged to another suspect recruited online to 

convert these funds into Bitcoins. Additional investigation revealed that the targets used 

various counterfeit certificates to portray themselves as legitimate suppliers. The 

$5.250million was forfeited for violations of Title 18 USC 1342, Wire Fraud. A Petition for 

Remission or Mitigation of Forfeiture for the loss has been submitted by the defrauded party, 

Med Tech, LLC. 

Priorities: In FY 2022, TEOAF will continue to support the investigations and activities of the 

participating law enforcement bureaus. The bulk of TEOAF expenses include supporting 

seizures and forfeitures and funds are expended for seizure, storage, maintenance, disposition, 

and destruction and all costs associated with those activities. 

TEOAF focuses on supporting cases and investigations that meet the mission of disrupting and 

dismantling criminal enterprises. To this end, TEOAF prioritizes major case1

 initiatives when 

allocating funding to member agencies, including the purchase of evidence and information, joint 

operations expenses, investigative expenses leading to seizure as well as software tools used for 

computer forensics and analysis of financial data. Major case initiatives are aligned directly to 

the National Money Laundering and Southwest Border strategies. 

Often, the assets identified in these investigations are proceeds of fraud schemes with multiple 

victims. TEOAF allocates significant resources to ensure that such investigations are adequately 

1

 A major case refers to a case where the forfeiture results in a deposit greater than $5 million, or a case that disrupts, dismantles, or interrupts 

money laundering networks or other financial activities that threaten the financial stability, financial system, or financial interests of the United 

States. 
TEOAF – 6 

funded to yield successful prosecutions and forfeitures. The resulting forfeiture deposits are used 

to compensate the victims defrauded by the violators. 

One of TEOAF’s highest immediate priorities now is supporting TFF participating law 

enforcement agencies’ response to COVID-19 related crimes. Our agencies are facing 

formidable challenges dealing with massive COVID-19 related fraud schemes such the use of PII 

obtained via network intrusion or phishing schemes or the sales of counterfeit vaccines and 

COVID treatments online and via Darknet marketplaces. Many of these investigations require 

analytical and cyber-investigative tools and services that are currently not available or 

insufficient. From the start of the pandemic, TEOAF has made it a priority to support our 

agencies’ efforts aimed at intercepting, disrupting and dismantling multi-million-dollar COVID 

fraud schemes and returning the money to the victims. It will remain a TEOAF high priority in 

FY 2021-2022, as the number of COVID-19 crimes is still growing, and the new financial 

assistance programs on federal and state levels will likely generate a significant number of fraud 

cases. 

The most notable financial investigations conducted by the TFF agencies involve professional 

money launderers who utilize highly sophisticated money laundering methods, global trade and 

finance, and emerging technologies such as cryptocurrencies. They launder illicit funds derived 

from many criminal violations, including drug trafficking, human smuggling and COVID-19 

fraud. This type of investigation requires extraordinary law enforcement efforts, manpower, and 

resources. TEOAF prioritizes the support of such investigations, including their ongoing 

operation’s needs and cutting-edge technology capabilities required for big data analytics, dark 

net investigations, block chain analysis, and mobile forensics necessary for these operations. 

These investments buttress the anti-money laundering and countering the financing of terrorism 

(AML/CFT) strategy of DHS and Treasury and uncertainty about future funding for 

investigations and forfeitures 

Challenges: Large rescissions enacted in prior years have resulted in inconsistent Strategic 

Support allocations and have led to uncertainty about future funding for financial investigations 

and forfeitures. 

The table below reflects forfeiture revenue from all sources including direct revenue, reverse 

asset sharing, and interest earned. 
TEOAF – 7 

*FY 2015 data does not include the BNP Paribas S.A. forfeiture in the amount of $3,839 million. Of that amount, $3,800 million was 

permanently rescinded and transferred by Congress under the Consolidated Appropriations Act of 2016, Pub. L. 114-113, Div. O, Tit. IV, §404(e) 

and §405(b). The remainder was returned to the General Fund in FY 2018. 

For operational support of TFF agencies’ investigations, both Mandatory and SEF are critical 

funding sources. The Mandatory funding supports investigative expenses only for seizure cases, 

but the vast majority of seizure cases do not t initially start as financial cases. They grow out of 

other cases pursuing specified unlawful activities such as drug trafficking, human smuggling, or 

cybercrime, which are all dependent on SEF funding for operational support. The nature of 

revenue and expenses for both Mandatory and SEF funding is equally dynamic, requiring 

adjustments during the fiscal year. 

In addition, TEOAF tracks future remission payments to third parties as contingent liabilities. 

However, these amounts are not recorded as Fund obligations until the Department of Justice 

grants the petition for remission. The third parties are predominantly victims of crimes that 

triggered the forfeiture (e.g., Ponzi scheme or kleptocracy victims). Amounts recorded are 

significant because remission payments from multiple years are recorded and carried forward. 

The amounts change constantly as payments are made and amounts for new remission cases are 

added. TEOAF considers the amounts recorded as contingent liabilities as unavailable and 

consideration of contingent liabilities provides a more accurate representation of the Fund’s 

financial position. 

 

$579 $556

$1,143

$931

$524

$1,715

$785 $795 $884

$516

$1,279

$876

$513

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Millions

FORFEITURE REVENUE FROM ALL SOURCES
TEOAF – 8 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

Treasury Forfeiture Fund FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Budgetary Resources Actual Estimated Estimated $ Change % Change 

 FTE 1 AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting 

Collections 

Interest $18,565 $25,000 $25,000 $0 NA 0% 

Restored Prior Year 

Sequestration Reduction $54,340 $30,294 $32,609 $2,315 NA 8% 

Forfeited Revenue $494,893 $547,096 $547,096 $0 NA 0% 

Recovery from Prior Years $32,358 $12,000 $12,000 $0 NA 0% 

Unobligated Balances 

from Prior Years $609,632 $691,453 $717,902 $26,449 NA 4% 

Total Revenue/Offsetting 

Collections $1,209,788 $1,305,843 $1,334,607 0 $28,764 NA 2% 

Expenses/Obligations 

Mandatory Obligations 27 ($465,205) 27 ($445,332) 27 ($445,332) $0 0.00% 0% 

Secretary's Enforcement ($22,836) ($35,000) ($35,700) ($700) NA 2% 

Strategic Support 2 $0 TBD TBD NA NA NA 

Total Expenses/Obligations 27 ($488,041) 27 ($480,332) 27 ($481,032) 0 ($700) 0.00% 0% 

Rescissions/Cancellations 

Sequestration Reduction 0 ($30,294) ($32,609) ($32,609) NA NA NA 

Permanent Cancellation 0 $0 ($75,000) $0 $75,000 NA -100% 

Total 

Rescission/Cancellations ($30,294) ($107,609) ($32,609) $75,000 NA -70% 

Net Results 27 $691,453 27 $717,902 27 $820,966 0 $103,064 0.00% 14% 

 

Contingent Liabilities ($512,764) ($465,000) ($465,000) $0 NA 0% 

1/ The Treasury Forfeiture Fund is staffed by Departmental Offices employees and positions are funded via reimbursable agreement. The FTE 

are shown here for clarity but are also reflected in the Departmental Offices chapter in the reimbursable FTE total. 

2/ For FY 2021 and FY 2022, Treasury will revise Strategic Support based on enacted appropriations and may submit a plan to Congress if 

funding is available, once more is known about collections and expenses. 

 
TEOAF – 9 

1.2 – Obligations Detail Table 

Dollars in Thousands 

Treasury Forfeiture Fund Obligations 

FY 2020 

Actual 

FY 2021 

Estimated 

FY 2022 

Estimated 

% Change FY 2021 

to FY 2022 

Mandatory 

 CBP $41,687 $42,110 $42,110 0.0% 

 ICE $162,302 $123,195 $123,195 0.0% 

 IRS $98,569 $124,484 $124,484 0.0% 

 USSS $49,258 $43,829 $43,829 0.0% 

 USCG $1,124 $1,428 $1,428 0.0% 

 TEOAF $81,799 $91,180 $91,180 0.0% 

 TTB $774 $1,058 $1,058 0.0% 

 DOJ $29,692 $18,048 $18,048 0.0% 

Total Mandatory $465,205 $445,332 $445,332 

SEF 

 CBP $4,370 $4,400 $4,488 2.0% 

 ICE $7,034 $12,123 $12,365 2.0% 

 IRS $6,734 $12,001 $12,241 2.0% 

 USSS $4,348 $6,126 $6,249 2.0% 

 TTB $350 $350 $357 2.0% 

Total SEF $22,836 $35,000 $35,700 

Strategic Support 

Total Strategic Support $0 TBD TBD NA 

Total Expenses/Obligations $488,041 $480,332 $481,032 0.1% 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification Actual Estimated Estimated 

25.2 - Other services from non-Federal sources 12,412 46,532 46,532 

25.3 - Other goods and services from Federal sources 246,657 140,546 140,546 

26.0 - Supplies and materials 1 1 1 

41.0 - Grants, subsidies, and contributions 131,218 115,502 115,502 

43.0 - Interest and dividends 170 19 20 

44.0 - Refunds 73,133 142,032 142,731 

94.0 - Financial Transfers 24,450 35,700 35,700 

Total Non-Personnel $488,041 $480,332 $481,032 

Total Budgetary Resources $488,041 $480,332 $481,032 

 

FTE 1 27 27 27 

1/ The Treasury Forfeiture Fund is staffed by Departmental Offices employees and positions are funded via reimbursable 

agreement. The FTE are shown here for clarity but are also reflected in the Departmental Offices chapter in the reimbursable 

FTE total. 

E – Legislative Proposals 

TEOAF has no legislative proposals. 
TEOAF – 10 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act (GPRAMA)

of 2010, the Department of the Treasury is currently developing the FY 2022 – 2026 

Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

The purpose of the Fund is to ensure resources are managed to cover the costs of an effective 

asset seizure and forfeiture program, including the costs of seizure or the proceedings of 

forfeiture and sale, including the expenses of detention, inventory, security, maintenance, 

advertisement, or disposal of the property. Additionally, the Fund is used to support law 

enforcement priorities, financial investigative capabilities, and the seizure of physical and 

financial resources to disrupt and dismantle criminal enterprises. 

B – Budget and Performance by Budget Activity 

2.1.1 Treasury Forfeiture Fund Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Resource Level Actual Actual Actual Actual Actual Estimated Estimated 

Expenses/Obligations $508,746 $526,228 $1,007,426 $1,022,684 $488,041 $480,332 $481,032 

Budget Activity Total $508,746 $526,228 $1,007,426 $1,022,684 $488,041 $480,332 $481,032 

FTE 25 25 25 26 27 27 27 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Measure Actual Actual Actual Actual Target Actual Target Target 

Percent of Forfeited Cash 

Proceeds Resulting from 

High-Impact Cases 

81.79 80 94.19 90.8 80 82.87 80 80 

Treasury Forfeiture Fund Budget and Performance 

($481,032,000 in obligations from revenue/offsetting collections): 

The Fund continues to measure the performance of the participating law enforcement bureaus 

through the “percent of forfeited cash proceeds resulting from high-impact cases, “which are 

cases that yield a cash forfeiture deposit equal to or greater than $100,000.” 

The high-impact cases are cases that pursue major criminal targets and their financial networks, 

and therefore, central to disrupting and dismantling criminal enterprises. At the same time, these 

cases are heavily dependent on TEOAF’s funding due to their high operational costs and reliance 

on sophisticated technologies and analytical tools that are not adequately covered by the 

appropriated funds. The dominant share of high-impact forfeitures reflects TEOAF’s 

effectiveness in supporting such major investigations. 

While the specific numbers shown in the chart fluctuate due to the unusually big forfeitures, the 

consistently dominant (80 percent or more) share of major forfeiture year after year demonstrates 
TEOAF – 11 

TEOAF’s consistent commitment to supporting high-impact cases. Member law enforcement 

bureaus participating in the Fund have met or exceeded the performance target since FY 2014. 

For FY 2021 and FY 2022, the target will remain at 80 percent. The Fund maintains a target of 

80 percent because some cases may be important to pursue, even if they are not high-impact 

cases and result in deposits of less than $100,000. 

D– Evidence-Building Activity 

In FY 2020 TEOAF has conducted various analyses related to the TFF member agencies’ 

investigative capabilities, resource needs and funding requests to determine the most effective 

ways to allocate TEOAF’s funds. 

For example, TEOAF also have been actively analyzing over 100 cases designated for TEOAF’s 

support through the Third-Party Money Laundering (3PML) Program. The 3PML Program is a 

TEOAF-led collaborative effort with the TFF member agencies. It is focused on identifying and 

supporting TFF agencies’ most important and complex cases targeting professional money 

launderers (individuals or entities), and performing analyses of the associated money laundering 

typologies, emerging trends and investigative needs. This includes analysis of deficiencies and 

emerging needs related to the TFF agencies’ investigative capabilities and infrastructure, and 

possible ways to use TFF funds to facilitate improvements. For instance, TEOAF has identified a 

growing need for IT tools to support analyses of large volumes of email data in foreign 

languages, and with agency assistance formulated a plan to fund and build the required solutions. 

Additionally, TEOAF has been conducting outreach and exploratory discussions with TFF 

agencies about the creation/enhancement of joint financial taskforces aimed at increasing the 

efficiency of TFF funding support through the shared use of TEOAF-funded resources. 

TEOAF plans to continue its high-impact work in FY 2021 and 2022. For example, a newly 

launched effort is the upgrade of technology for member agencies for scanning and analysis of 

financial records funded by TEOAF and utilized jointly by TFF agencies. 

Section III – Additional Information 

 

A – Summary of Capital Investments 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Bureau of Engraving and 

Printing 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
BEP – 2 

Table of Contents 

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

1.1 – Resources Detail Table ...................................................................................................... 5

1.2 – Budget Adjustments Table ................................................................................................. 6

C – Budget Increases and Decreases Description ....................................................................... 6

1.3 – Object Classification (Schedule O) Obligations ................................................................ 8

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

2.1 – Manufacturing Resources and Measures ......................................................................... 10

Manufacturing Budget and Performance .................................................................................. 10

C – Changes in Performance Measures .................................................................................... 11

D – Evidence-Building Activity ............................................................................................... 11

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments ....................................................................................... 13
BEP – 3 

Section I – Budget Request 

A – Mission Statement 

To develop and produce United States currency notes trusted worldwide. 

B – Summary of the Request 

The Bureau of Engraving and Printing (BEP) produces and delivers U.S. currency notes for the 

Federal Reserve System ordered by the Board of Governors of the Federal Reserve (FRB) and other 

security products for the Federal Government. BEP began printing currency in 1862 and operates on 

the basis of authority conferred upon the Secretary of the Treasury by 31 U.S.C. 321(a) (4) to 

engrave and print currency and other security documents. Operations are financed through a 

revolving fund established in 1950 in accordance with Public Law 81-656. The fund is reimbursed 

for direct and indirect costs of operations, including administrative expenses, through product sales. 

In 1977, Public Law 95-81 authorized BEP to include an amount sufficient to fund capital investment 

and to meet working capital requirements in the prices charged for products, eliminating the need for 

annual discretionary appropriations. 

BEP provides technical assistance, advice, and some production services to other federal agencies in 

the development of security documents that require counterfeit deterrent features due to their innate 

value or other characteristics. Other activities at BEP include engraving plates and dyes; 

manufacturing inks used to print security products; purchasing materials, supplies and equipment; 

and storing and delivering products in accordance with customer requirements. BEP supports 

BEP’s FY 2022 request funds the following projects: 

1. Replacement Production Facility: In FY 2019, BEP received legislative authority to acquire 

land and fund construction of a more efficient production facility to replace BEP’s current aging 

Washington, D.C. facility. Additionally, a provision of the 2018 Farm Bill authorizes the 

transfer of a U.S. Department of Agriculture (USDA) land parcel in Beltsville, Maryland to the 

Department of the Treasury to be the site for BEP’s replacement production facility. BEP is 

conducting a suitability assessment of the site with support from the U.S. Army Corps of 

Engineers. The property transfer Memorandum of Agreement (MOA) between USDA and 

Treasury was finalized in early 2020. The formal transfer of administrative control from USDA 

to Treasury is anticipated in late 2021. A replacement facility will save an estimated $579 

million over 10 years, as compared to the cost of the renovation of the existing facility. In 

addition, BEP will reduce its annual operating costs by at least $38 million through production, 

material handling, and other operational/support efficiencies. 

In 2021, BEP plans to begin early site development construction activities estimated at $30 

million to include the removal of hazardous building materials, demolition of twenty-two former 

agriculture research buildings and minor utility system relocations to support the BEP 

development. Contracts for this work will be awarded in late summer 2021. FY 2022 funding in 

the amount of $897 million will include the award of the construction contract for the 

replacement facility. Specifically, it will fund the structure of the building. The contract will 

cover the construction of a smaller, more efficient facility to support current and future 

manufacturing processes.

2. Western Currency Facility Expansion: BEP began expanding the Western Currency Facility 

(WCF) in FY 2018 to house and support the new equipment required for the next generation of 
BEP – 4 

currency design. Producing the next family of updated notes requires that BEP purchase and 

install new production equipment to support the new designs. The expansion will provide the 

space and infrastructure necessary to successfully meet the production requirements of the next 

family of U.S. currency banknotes that focus on the integration of strong, new security features. 

The expansion work is expected to be completed in FY 2022. The FY 2022 projected cost for the 

WCF is $1 million for construction close-out activities. 

3. Banknote Design and Development: In FY 2022, BEP will continue to work on this multi-year 

project with the Federal Government’s Advanced Counterfeit Deterrent (ACD) Steering 

Committee to research and develop improved security features for the next family of updated 

notes. The ACD Committee is an inter-agency group established to monitor and explore existing 

and emerging technologies to deter the counterfeiting of U.S. currency. It includes 

representatives from BEP, the Department of the Treasury, the U.S. Secret Service, and the 

Federal Reserve Board (FRB). The updated notes will focus on innovative banknote security 

and anti-counterfeit technology that will enhance and ensure the security and integrity of U.S. 

currency. While many factors are taken into consideration when updating currency, the primary 

purpose for updating notes is to improve the security of U.S. banknotes and ensure they maintain 

their position as being trusted worldwide. 

4. Retooling: BEP is conducting a multi-year effort to retool its manufacturing processes with stateof-the-art intaglio printing presses, electronic inspection systems, and finishing equipment. To 

ensure that BEP will meet the annual currency order, the FRB and BEP developed short, 

medium, and long-term strategic equipment replacement plans for the U.S. Currency Program. 

Successful implementation of advanced technology improves productivity, reduces 

environmental impact, and enhances counterfeit deterrence of U.S. currency notes. In 

FY 2021/2022, the major retooling initiatives include:

 Upgrade and completely automate the $100 finishing line to integrate Single Note 

Inspection technology. The capability to inspect single notes provides a significant 

improvement over BEP’s traditional sheet inspection process. Spoilage will be reduced 

significantly, and processing efficiency will increase resulting in cost savings. 

 Replace obsolete electrical and mechanical parts on existing presses and upgrade the 

inspection system to meet present and future currency printing requirements, as well as to 

extend the life of electrical and mechanical systems in the existing machinery. 

 Replace aging COPE–PAK equipment with the next generation of processing technology 

including the Large Examining and Printing Equipment (ns-LEPE). This project will 

replace the existing aging equipment and will expand BEP capabilities to manufacture 50 

notes per sheet across all production lines. This will improve productivity for the 

remaining currency denominations that continue to be produced at 32 notes per sheet. 

 Replace existing electrolytic chrome line with a PVD (Physical Vapor Deposition) 

Chrome system. PVD has known environmental plate life improvement benefits. This 

project will eliminate the BEP's need to use hexavalent chromium to coat printing plates. 

PVD coatings could also improve plate life. 

 The LEPE Inspection and Electrical Upgrades project is to make improvements to the 

existing system in operation to bring them up to the new capabilities that are included on 

the next generation LEPE system mentioned above. 
BEP – 5 

5. Human Capital/Talent Management: The BEP will continue its designated talent 

management initiatives, while filling personnel gaps in needed STEM and cybersecurity skill 

sets. The BEP has proactively continued to fill the gaps in STEM and cybersecurity positions 

in FY 2021 by utilizing a variety of hiring authorities and participating in a virtual fair in 

November 2020, which specifically targeted STEM positions in the federal government. 

Additionally, the BEP attended six recruitment events in the D.C. and Dallas/Ft. Worth 

locations to attract potential candidates in targeted demographic areas. STEM positions will 

continue to be highlighted by the BEP during our participation in four upcoming Recruit 

Military career fairs targeting potential veteran applicants. To date we have on boarded 13 

new hires in the STEM field. 

In terms of Employee Engagement, BEP continued making deliberate efforts to assess and 

track all engagement related activities and metrics including: implementation of a “Core 

Values” program; development and implementation of a Collaborative Communication 

Network; development of an Employee Appreciation program; and the establishment of a 

BEP Community Spirit program that took place during FY 2020. Throughout FY 2021, BEP 

will rebrand employee engagement by educating the workforce on important engagement 

topics, reevaluating the current Engagement Strategy, recruiting new volunteers to implement 

the engagement initiatives, and promoting direct communications with BEP executive 

leadership to reinforce that their voices are heard. BEP will also continue to develop, 

execute, and communicate the results of Employee Engagement Plans and the annual Federal 

Employee Viewpoint Survey (FEVS) results. 

1.1 – Resources Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Budgetary Resources Actual Revised Estimate Estimate % Change 

Revenue/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Currency Program 1,737 $863,552 1,860 $1,029,054 1,860 $1,037,205 0.00% 0.79% 

Other Programs 0 10,009 0 10,000 0 10,000 0.00% 0.00% 

DC Replacement Facility 3 5,050 3 29,940 3 897,048 0.00% 2896.15% 

Total Revenue/Offsetting Collections 1,740 $878,611 1,863 $1,068,994 1,863 $1,944,253 0.00% 81.88% 

Expenses/Obligations 

Direct Manufacturing 823 415,585 876 429,104 876 429,961 0.00% 0.20% 

Indirect Manufacturing Support 914 457,976 984 609,950 984 617,244 0.00% 1.20% 

DC Replacement Facility 3 5,050 3 29,940 3 897,048 0.00% 2896.15% 

Total Expenses/Obligations 1,740 878,611 1,863 1,068,994 1,863 1,944,253 0.00% 81.88% 

Net Results 0 $0 0 $0 0 $0 NA NA 

 

 
BEP – 6 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Materials Operating 

& Capital Total 

FY 2021 Original Estimate 1,863 $248,921 $638,479 $887,400 

Program Changes 

Program Increases 0 140,079 41,515 181,594 

Currency Program (6.8B to 7.6B) 0 120,079 41,515 161,594 

Currency Paper Production COOP 0 20,000 0 20,000 

Subtotal Program Changes 0 140,079 41,515 181,594 

FY 2021 Revised Estimate 1,863 $389,000 $679,994 $1,068,994 

Changes to Base 

Maintaining Current Levels (MCLs) 0 5,278 11,145 16,423 

Pay Annualization (1.0% average pay raise) 0 0 726 726 

Pay Raise (2.7% average pay raise) 0 0 5,894 5,894 

FERS Contribution Increase 0 0 2,010 2,010 

Non-Pay 0 5,278 2,515 7,793 

Subtotal Changes to Base 0 5,278 11,145 16,423 

FY 2022 Current Services 1,863 $394,278 $691,139 $1,085,417 

Program Changes 

Program Decreases 0 (20,000) (25,247) (45,247) 

Currency Paper Production COOP 0 (20,000) 0 (20,000) 

Facilities Support 0 0 (4,890) (4,890) 

Manufacturing Support 0 0 (10,512) (10,512) 

WCF Building Expansion 0 0 (3,770) (3,770) 

Security and Accountability 0 0 (6,075) (6,075) 

Program Increases 0 0 904,083 904,083 

Washington D.C. Replacement Facility 0 0 867,108 867,108 

Retooling 0 0 36,975 36,975 

Subtotal Program Changes 0 (20,000) 878,836 858,836 

Total FY 2022 Estimate 1,863 $374,278 $1,569,975 $1,944,253 

C – Budget Increases and Decreases Description 

FY 2021 Adjustments 

Program Increases............................................................+$181,594,000 / +0 FTE 

Currency Program +161,594,000 / +0 FTE 

This increase is to reflect the currency order commitment increase from 6.8B to 7.6B notes. 

Currency Paper Production COOP +$20,000,000 / +0 FTE 

This increase is for the one-time COOP improvement to the currency paper production. 

Maintaining Current Levels (MCLs) ......................................................+$16,423,000 / +0 FTE 

Pay Annualization (1.0%) +$726,000 / +0 FTE 

Funds are required for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$5,894,000 / +0 FTE 

Funds are required for a 2.7% average pay raise in January 2022. 
BEP – 7 

FERS Contribution Increase +$2,010,000 / +0 FTE 

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$7,793,000 / +0 FTE 

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

and equipment. 

FY 2022 Program Decreases.................................................................... -$45,247,000 / -0 FTE 

Currency Paper Production COOP -$20,000,000 / -0 FTE 

This is a reduction for the FY21 COOP improvement to the currency paper production. 

Facilities Support -$4,890, 000 / -0 FTE 

WCF vault automated racking system and shipping roof replacement. 

Manufacturing Support -$10,512,000 / -0 FTE 

Barcoding and RFID implementation and inspection equipment. 

WCF Building Expansion -$3,770,000 / -0 FTE 

Construction will be completed in FY 2022. 

Security and Accountability -$6,075,000 / -0 FTE 

Radio system upgrade for both facilities. 

FY 2022 Program Increases...................................................................+$904,083,000 / +0 FTE 

Washington DC Replacement Facility +867,108,000 / +0 FTE 

This amount reflects the increase of planned obligation for the new DC facility for FY 2022. 

Retooling +$36,975,000 / +0 FTE 

This increase reflects the planned capital spending for PVD (Physical Vapor Deposition) chrome 

system, offset press replacement and acquisition of additional LEPEs (Large Examining and 

Printing Equipment) and upgrade of existing LEPEs now in production. (LEPEs combine three 

previously separate processes of inspection, printing serial numbers and seals and final 

packaging). 
BEP – 8 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

Object Classification 

FY 2020 

Actual 

Obligations 

FY 2021 

Estimated 

Obligations 

FY 2022 

Estimated 

Obligations 

11.1 - Full-time permanent 173,869 176,850 189,926 

11.3 - Other than full-time permanent 250 200 200 

11.5 - Other personnel compensation 20,618 8,012 7,500 

11.6 - Overtime 20,653 32,000 25,300 

11.9 - Personnel Compensation (Total) 215,390 217,062 222,926 

12.0 - Personnel benefits 73,509 73,274 73,730 

13.0 - Benefits for former personnel 1 3 3 

Total Personnel and Compensation Benefits $288,900 $290,340 $296,659 

21.0 - Travel and transportation of persons 786 1,927 1,965 

22.0 - Transportation of things 442 128 130 

23.1 - Rental payments to GSA 3,231 4,204 3,641 

23.2 - Rental payments to others 630 768 783 

23.3 - Communication, utilities, and misc. charges 20,113 23,133 24,150 

24.0 - Printing and reproduction 12 13 250 

25.1 - Advisory and assistance services 4,187 81,932 9,007 

25.2 - Other services 141,517 98,292 177,020 

25.3 - Other purchases of goods and services from Government 

Accounts 35,277 40,917 908,019 

25.4 - Operation and maintenance of facilities 39,528 6,126 6,159 

25.5 - Research and development contracts 7,127 4,397 4,083 

26.0 - Supplies and materials 236,419 389,069 376,129 

31.0 - Equipment 100,048 127,187 136,103 

42.0 - Insurance claims and indemnities 395 561 155 

Total Non-Personnel $589,711 $778,654 $1,647,594 

Total Obligations $878,611 $1,068,994 $1,944,253 

 

FTE 1,740 1,863 1,863 

D – Appropriations Language and Explanation of Changes 

The BEP does not require annual appropriations language. 

E – Legislative Proposals 

BEP has no legislative proposals. 
BEP – 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

BEP's vision is to be the world’s standard securities printer providing its customers and the public 

with superior products through excellence in manufacturing and innovation. 

U.S. currency is used globally and as its manufacturer, BEP needs to achieve and maintain bestin-class practices for U.S. currency to be accepted worldwide. Working closely with its partners 

in the U.S. Currency Program, BEP looks forward to updating the next series of secure notes. 

BEP continues to make every effort to meet its mission to manufacture sophisticated and 

technologically advanced notes that are dependable in commerce. This achievement requires the 

focus and determination of the entire agency, since BEP faces challenges and is committed to 

stay ahead of increasingly sophisticated counterfeiters. 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan for publication in 2022. The Annual Performance Plan will be 

updated in the FY 2023 President’s Budget to reflect new departmental strategic goals and 

objectives. The Bureau of Engraving and Printing will also publish a component plan in FY 2022 

that aligns bureau activities and priorities to the Department’s Strategic Plan by the 3rd quarter of 

FY 2022. 

 
BEP – 10 

B – Budget and Performance by Budget Activity 

2.1 – Manufacturing Resources and Measures 

Dollars in Thousands

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $648,365 $712,920 $914,134 $955,212 $878,611 $1,068,994 $1,944,253 

Budget Activity Total $648,365 $712,920 $914,134 $955,212 $878,611 $1,068,994 $1,944,253 

Full-time Equivalents (FTE) 1,790 1,818 1,748 1,727 1,740 1,863 1,863 

Performance Measure

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Actual Actual Actual Actual Actual Target Target Target

Currency Notes Delivered 

Returned Due to Defects 

(Parts per Million)

N/A B .0031ppm .09ppm .02ppm <1ppm <1ppm <1ppm

FEVS Satisfaction Index

N/A 73 74 74 74 >65% >65% >65%

Lost Time Accident Rate 

per 100 Employees2 1.77 1.36 0.78 1.48 1.01 <1.8 <1.8 <1.8

Manufacturing Costs For 

Currency (Dollar Costs Per 

Thousand Notes Produced) $44.25 $43.58 $47.41 $50.33 $56.19 $59.651 $64.33 $65.00

Yearly Currency Order 

(percent of order completed 

versus planned) N/A N/A N/A 100% 100% 100% 100% 100%

Key: B - Baseline

1 Target Manufacturing Cost in FY 2020 was increased from $55.73 to $59.65 in Jun 2020 in response to an increase in FY 2020 

order due to pandemic demand. 

2 Lost Time Accident Rates are adjusted following adjudication of accident reports received during each fiscal year. 

The FY 2016, 2017 and 2018 numbers shown reflect these adjustments. 

Manufacturing Budget and Performance 

($1,944,253,000 from reimbursable sources)

The BEP has one budget activity: Manufacturing. This budget activity supports all of BEP’s strategic 

goals. 

Description of Performance: 

Currency Notes Returned Due to Defects (in parts per million or ppm) is an indicator of BEP’s 

ability to provide a quality product. The target for this performance metric is <1 ppm. BEP was able 

to exceed the established target in FY 2020 due to improved quality assurance processes with an 

actual result of 0.02 ppm notes returned due to a defect. BEP’s target for this performance metric will 

be held constant at <1 ppm for FY 2021 and FY 2022. 

The Federal Employees Viewpoint Survey (FEVS) allows employees to share their opinion on what 

matters most to them. Based on the results of the survey, BEP can target areas for improvement or 
BEP – 11 

additional employee engagement. The measure uses the Department’s standard FEVS Satisfaction 

Index with a target of 65 percent. In FY 2021 and 2022, BEP will continue to strive for 

improvements in overall employee satisfaction. 

The Lost Time Accident Rate per 100 employees measures the BEP’s ability to reduce injuries and 

illnesses in the workplace. BEP’s FY 2020 Lost Time Accident rate was at 1.01 cases per 100 

employees, lower than the target of 1.80 cases per 100 employees. This performance resulted from 

increased focus on following safe work practices, avoiding hazards, and being a Director’s priority. 

For FY 2022, BEP remains committed to maintaining and improving the safety of its employees. 

BEP will continue to perform analysis to determine the root causes of any injury and to identify best 

practices in safety. A 1.8 case rate represents approximately one injury per facility per month, 

which is quite low. Therefore, BEP’s target will be held at 1.80 cases per 100 employees for 

FY 2021 and FY 2022.

Manufacturing Cost for Currency (dollar cost per 1,000 notes produced) is an indicator of 

manufacturing efficiency and effectiveness of program management. The measure is based on 

contracted price factors, productivity improvements, and the mix and timing of denominations 

ordered. Actual performance against standard costs depends on BEP’s ability to meet spoilage, 

efficiency, and capacity utilization goals. The final FY 2020 cost was $56.19 per 1,000 notes 

produced. BEP’s target for this performance metric is $59.65 in FY 2020 and $64.33 in FY 2021. 

The target for FY 2022 is set at $65.00 per 1,000 notes produced and will be refined once the 

currency order is received. 

The Yearly Currency Order measures BEP’s success in delivering the total number of currency notes 

ordered by the Federal Reserve Board annually. In FY 2020, BEP met its target of delivering 100 

percent of the currency notes ordered, including a 20 percent increase mid-year due to increased 

demand during the COVID-19 pandemic. In FY 2021, BEP has committed to deliver 7.6B notes. 

Additionally, the FRB will accept any additional production up to a total of 9.6B notes. Should 

production exceed the commitment of 7.6B notes, the Yearly Currency Order figure reported will be 

greater than 100percent (applicable to FY 2021 only). 

C – Changes in Performance Measures 

BEP has no changes in performance measures. 

D – Evidence-Building Activity 

The table below describes the BEP’s major evidence-building activities and corresponding 

resources. Additionally, refer to the Executive Summary for a discussion of Treasury-wide 

evidence-building functions. 

 

Type of Evidence 

Building Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Evaluation 

Collection and analysis 

of data to assess 

effectiveness and 

efficiency of programs, 

policies, or procedures

Major activities: 

 Data collection and 

analysis is a key 

feature of production 

 Data collection performed 

by personnel in numerous 

job series, in addition to 

automated data collection 

systems. 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 
BEP – 12 

Type of Evidence 

Building Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Estimated share of all 

Evidence-Building 

Activities: 

 40 %

processes organizationwide. 

 Data Evaluation is 

performed at several levels, 

including on-press, in 

summary reports by 

management and senior 

leadership. 

management 

processes 

☐ By external 

partners 

(government) 

☐ By external 

partners 

 (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

FY21 and FY22 

projects: 

 CQA 

Research 

Modeling or other 

systematic use of data 

to explore emerging 

issues or potential 

scenarios to generate 

new knowledge

Estimated share of all 

Evidence-Building 

Activities: 

 20 %

Major activities: 

 Currency security and 

other feature research 

and development 

 Correction and 

Preventive Actions 

 Security and other feature 

research and development 

consists of both basic and 

applied/practical research 

efforts. Personnel 

involved: doctorallyeducated research scientists 

(13xx) of various series. 

 Corrective and preventive 

actions (CAPA) result from 

process and or quality 

concerns, and involves 

practical research in both 

how our outcomes are 

produced, and how 

outcomes can be improved. 

Personnel involved: 

personnel in quality 

assurance (19xx) and 

production roles throughout 

the bureau. 

☒ For internal 

policy decisionmaking 

☐ During internal 

strategic 

management 

processes 

☐ By external 

partners 

(government) 

☐ By external 

partners 

 (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

FY21 and FY22 

projects: 

 None 

Analysis 

Routine and frequent

use of data that 

produces insights for 

decision making and 

program management

Major activities: 

 Performance 

Measurement activities 

 Currency Quality 

Assurance (CQA) 

 As a normal part of its 

business, BEP manages 

using a number of metrics 

(both strategic and tactical), 

and takes action when 

parameters exceed 

established norms, or when 

☒ For internal 

policy decisionmaking 

☒ During internal 

strategic 

management 

processes 
BEP – 13 

Type of Evidence 

Building Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Estimated share of all 

Evidence-Building 

Activities: 

 25 %

FY21 and FY22 

projects: 

 None 

product quality concerns 

are noted. 

 The quarterly Quality 

Management Review 

involves analysis of key 

metric data and 

performance, and allows

continuing review of 

suitability, adequacy, and 

effectiveness of its Quality 

Management System 

(QMS) and its alignment 

with the strategic direction 

of the Bureau. This 

meeting involves leaders 

from throughout the bureau 

in various job series. 

 These activities involve 

personnel in numerous job 

series. 

☐ By external 

partners 

(government) 

☐ By external 

partners 

 (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

Statistics 

Collection, 

compilation, and 

processing of data for 

describing or 

estimating 

characteristics or 

insights concerning 

groups

Estimated share of all 

Evidence-Building 

Activities: 

15%

Major activities: 

 Characterization of 

product parameters 

using statistical 

process and quality 

control. 

 We use statistics to analyze 

results, product 

characteristics and 

performance to 

requirements. Examples of 

this include durability 

testing, in-line and offline 

currency inspection 

systems, and single note 

inspection (SNI). Job series 

involved in these activities 

include wage grade 

employees and 

management on press, 

engineers (08xx), scientists 

(13xx) and quality 

assurance specialists (19xx) 

offline. 

☒ For internal 

policy decisionmaking 

☐ During internal 

strategic 

management 

processes 

☐ By external 

partners 

(government) 

☐ By external 

partners 

 (nongovernment) 

☐ By unaffiliated 

external 

researchers 

☐ Other (describe) 

FY21 and FY22 

projects: 

 None 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

United States Mint 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 

 
MINT - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

1.1 – Resource Detail Table ........................................................................................................ 4

1.2 – Budget Adjustments Table ................................................................................................. 5

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

2.1.1 – Manufacturing Resources and Measures ...................................................................... 10

Manufacturing Budget and Performance .................................................................................. 11

C – Changes in Performance Measures .................................................................................... 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
MINT - 3 

Section I – Budget Request 

A – Mission Statement 

To enable America’s economic growth and stability by protecting assets entrusted to us and 

manufacturing coins and medals to facilitate national commerce. 

B – Summary of the Request 

In Fiscal Year (FY) 2022, the Mint’s total estimated budgetary requirements for operations, 

metal, and capital investments are $3.31 billion. This budget will support the production of 18 

billion circulating coins, as well as the production of bullion and other numismatic products 

sufficient to meet customer demand. The Mint has one budget activity: manufacturing, which 

encompasses the bureau’s two major programs, circulating coinage and numismatic products 

(including bullion coins, collector coins, and national medals). 

To maintain its reputation as one of the finest mints in the world, the Mint is committed to 

operating according to the core values of service, quality, and integrity. The Mint has three 

strategic goals to help fulfill its mission and values: 1) Advancing our circulating mission 

through innovation and technology; 2) Foster a safe, flexible, diverse and engaged workforce; 

3) Introducing diverse products to new customers and revitalizing the Mint customer base 

through the use of industry-proven marketing approaches. 

Mint operations are funded through the Mint Public Enterprise Fund (PEF), 31 U.S.C. § 5136. 

The Mint generates revenue through the sale of circulating coins to the Federal Reserve Banks 

(FRB), numismatic products to the public, and bullion coins to authorized purchasers. All 

circulating and numismatic operating expenses, along with capital investments incurred for the 

Mint’s operations and programs, are paid out of the PEF. By law, all funds in the PEF are 

available without fiscal year limitation. Revenues determined to be in excess of the amount 

required by the PEF are transferred to the United States Treasury General Fund. 

Circulating 

Circulating coin production projections are based on current economic data and forecasts of FRB 

coin orders. Circulating coin production for FY 2021 and FY 2022 is forecasted at 20.0 billion 

and 18.0 billion coins, respectively. This level reflects a 29 percent increase for FY 2021 and a 

16 percent increase for FY 2022 in shipments of all coin denominations, as compared to 15.5 

billion in FY 2020. Circulating revenue is forecasted at $1.678 billion in FY 2021 and $1.382 

billion in FY 2022. FY 2020 unit costs decreased for all denominations except the dime 

compared to last year. The unit cost for both pennies (1.76 cents) and nickels (7.42 cents) 

remained above face value for the 15th consecutive fiscal year. 

Numismatic Program 

The numismatic program, which includes bullion coins, is designed to prepare and distribute 

premium products to collectors and those who desire quality versions of coinage. Numismatic 

products are priced to cover metal and production costs. 

 
MINT - 4 

Bullion Coins 

The bullion coin program provides the public a means to acquire precious metal coins as part of 

an investment portfolio. In FY 2020, bullion demand increased to 24.7 million ounces from the 

18.8 million ounces sold in FY 2019. Demand for bullion is forecasted at 21.1 million ounces 

for both FY 2021 and FY 2022. Bullion revenue is forecasted to be $1.99 billion in FY 2021 and 

$2.1 billion in FY 2022. 

Numismatic (Collector Coins and Medals) 

The numismatic program provides high-quality versions of circulating coinage, precious metal 

coins, commemorative coins, and national medals for sale to the public. Numismatic revenue 

decreased by 0.9 percent from $349.6 million in FY 2019 to $346.6 million in FY 2020 due to a 

$23.0 million increase in gold and platinum products offset by a $34.3 million decrease in 

commemorative product revenues. Total units decreased by 20.9 percent from 4.3 million in 

FY 2019 to 3.4 million in FY 2020. FY 2021 and FY 2022 numismatic revenues are projected to 

be $514.5 million and $454.5 million, based on projected demand for numismatic products of 3.6 

million in FY 2021 and increasing to 3.8 million in FY 2022. 

1.1 – Resource Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Budgetary Resources Actual Estimate Estimate % Change 

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting Collections 

Other Income 

Circulating 0 $1,168,492 0 $1,678,351 0 $1,381,960 NA -17.66% 

Bullion/Numismatic 0 $2,458,264 0 $2,509,019 0 $2,573,819 NA 2.58% 

Total Revenue/Offsetting Collections 0 $3,626,756 0 $4,187,370 0 $3,955,779 NA -5.53% 

Expenses/Obligations 

Manufacturing 

Circulating 831 $1,115,526 919 $1,168,175 919 $1,237,311 0.00% 5.92% 

Bullion/Numismatic 708 $2,346,835 752 $2,132,325 752 $2,075,287 0.00% -2.67% 

Total Expenses/Obligations 1,539 $3,462,361 1,671 $3,300,500 1,671 $3,312,598 0.00% 0.37% 

Net Results 1,539 $164,395 1,671 $886,870 1,671 $643,181 0.00% -27.48% 

Coin Shipments (Units In Millions/Coins) FY 2020 FY 2021 FY 2022 % Change 

Circulating: 

One Cent 8,174 9,550 9,223 -3.4% 

5-Cent 1,598 2,623 2,045 -22.0% 

Dime 2,801 3,366 3,303 -1.9% 

Quarter 2,906 4,460 3,429 -23.1% 

Half-Dollar - - - 0.0% 

Dollar - - - 0.0% 

Total Circulating 15,479 20,000 18,000 -10.0% 

FY 2020 FY 2021 FY 2022 

Budget Category Actual Estimated Estimated % Change 

Administrative Operating Costs 

$404,433 

$430,000 $442,098 2.8% 

Capital Investments $39,463 $60,500 $60,500 0.0% 

Metals and Materials Costs $3,018,466 $2,810,000 $2,810,000 0.0% 

Total Budgetary Resources $3,462,361 $3,300,500 $3,312,598 0.4% 

 
MINT - 5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Materials Operating 

& Capital Total 

FY 2021 Original Estimate 1,705 $2,080,000 $467,197 $2,547,197 

Program Changes 

Program Decreases: (34) $0 ($9,827) ($9,827) 

FTE Reduction (34) $0 ($2,107) ($2,107) 

Operating Efficiencies 0 $0 ($7,720) ($7,720) 

Program Increases: 0 $730,000 $33,130 $763,130 

Metal Due to Forecasted Increase in Circulating Coin Production 0 $250,000 $0 $250,000 

Metal Due to Forecasted Increase in Bullion and Numismatic Production 0 $480,000 $0 $480,000 

COVID-19 Requirements 0 $0 $5,410 $5,410 

Increased Shipping and Handling 0 $0 $17,744 $17,744 

Equipment and Facilities O&M 0 $0 $9,976 $9,976 

Subtotal Program Changes (34) $730,000 $23,303 $753,303 

FY 2021 Revised Estimate 1,671 $2,810,000 $490,500 $3,300,500 

Changes to Base 

Maintaining Current Levels (MCLs) 0 $0 $12,098 $12,098 

Pay Annualization (1.0% average pay raise) 0 $0 $547 $547 

Pay Raise (2.7% average pay raise) 0 $0 $4,443 $4,443 

FERS Contribution Increase 0 $0 $1,675 $1,675 

Non-Pay 0 $0 $5,433 $5,433 

Subtotal Changes to Base 0 $0 $12,098 $12,098 

FY 2022 Current Services 1,671 $2,810,000 $502,598 $3,312,598 

FY 2022 Estimate 1,671 $2,810,000 $502,598 $3,312,598 

C – Budget Increases and Decreases Description 

Program Decreases............................................................-$9,827,000 / -34 FTE 

FTE Reduction -$2,107,000 / -34 FTE 

Salary savings will be realized through natural attrition across all directorates. 

Operating Efficiencies -$7,720,000 / -0 FTE 

The Mint will reduce its operating budget by continuing to monitor costs and implement various 

savings strategies. 

Program Increases............................................................. +$763,130,000 / +0 FTE

Metal Due to Forecasted Increase in Circulating Coin Production +$250,000,000 / +0 FTE 

FY 2021 forecasted circulating coin production is increasing by 29%, from 15.5 billion coins in 

FY 2020 to approximately 20 billion coins. Metal prices are also projected to increase which 

results in an overall increase in circulating coin program costs. 

Metal Due to Forecasted Increase in Bullion and Numismatic Production +$480,000,000 / +0 

FTE 

FY 2021 forecasted demand for the bullion coin program is increasing metal requirements by 

$480 million. Bullion program sales are forecasted to increase by 6 percent, and precious metal 
MINT - 6 

prices have surged. The projected increase is bullion sales coupled with the surge in metal prices 

results in an overall increase in program costs. 

COVID-19 Requirements +$5,410,000 / +0 FTE 

COVID -19 funding is required to maintain a healthy and safe workforce. The Mint has taken 

steps to ensure the safety of its employees by installing plexi-glass shields in areas with high 

customer interaction. Touchless faucets, touchless paper towel dispensers, and touchless soap 

dispensers are being installed in bathrooms throughout our facilities, and water fountains are 

being converted to water bottle filling stations. In FY 2022, the Mint will continue to provide all 

our facilities with Personal Protective Equipment (PPE) and enhanced janitorial cleaning 

services to ensure the safety of all who enter our buildings. In addition, as coin demand has 

soared during the pandemic and is expected to remain high, overtime will be used to ensure these 

elevated production levels are met. 

Increased Shipping and Handling +$17,744,000 / +0 FTE 

As a result of the increase in FY 2021 forecasted demand for the bullion coin program and 

circulating coin production, operating cost has also increased requiring additional funding for 

freight. 

Equipment and Facilities O&M +$9,976,000 / +0 FTE 

With increases to FY 2021 forecasted demand for the bullion coin program and circulating coin 

production, operation and maintenance of equipment and facilities cost has also increased 

requiring additional funding.

 

Maintaining Current Levels (MCLs)..................................................... +$12,098,000 / +0 FTE

Pay Annualization (1.0%) +$547,000 / +0 FTE 

Funds are required for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$4,443,000 / +0 FTE 

Funds are required for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$1,675,000 / +0 FTE 

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$5,433,000 / +0 FTE 

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

and equipment. 
MINT - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

Object Classification 

FY 2020 

Actual 

Obligations 

FY 2021 

Estimated 

Obligations 

FY 2022 

Estimated 

Obligations 

11.1 - Full-time permanent 138,201 150,696 166,705 

11.3 - Other than full-time permanent 266 161 161 

11.5 - Other personnel compensation 16,111 12,000 15,700 

11.9 - Personnel Compensation (Total) 154,579 162,857 182,566 

12.1 - Personnel benefits 55,222 54,990 54,990 

13.0 - Benefits for former personnel 18 1,019 1,019 

Total Personnel and Compensation Benefits $209,818 $218,866 $238,575 

21.0 - Travel and transportation of persons 911 900 2,663 

22.0 - Transportation of things 33,310 39,144 21,400 

23.1 - Rental Payments to GSA 1 0 0 

23.2 - Rental payments to others 11,292 14,000 14,000 

23.3 - Communication, utilities, and misc charges 13,807 18,960 18,960 

24.0 - Printing and reproduction 1,728 2,000 3,366 

25.1 - Advisory and assistance services 52,143 52,000 60,621 

25.2 - Other services 18,988 19,000 21,063 

25.3 - Other purchases of goods & serv from Govt accounts 20,105 20,500 20,586 

25.4 - Operation and maintenance of facilities 9,955 10,000 9,375 

25.5 - Research and development contracts 72 100 900 

25.6 - Medical care 1,106 900 900 

25.7 - Operation and maintenance of equip 9,726 11,000 7,059 

26.0 - Supplies and materials 18,140 19,050 19,050 

26.0 - Raw Materials 3,018,466 2,810,000 2,810,000 

31.0 - Equipment 29,883 51,000 52,266 

32.0 - Land and structures 12,911 13,080 11,814 

Total Non-Personnel 3,252,543 3,081,634 3,074,023 

Total Obligations $3,462,362 $3,300,500 $3,312,598 

 

Full-time Equivalents (FTE) 1,539 1,671 1,671 
MINT - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

United States Mint 

Federal Funds 

Pursuant to section 5136 of title 31, United States Code, 

the United States Mint is provided funding through the 

United States Mint Public Enterprise Fund for costs 

associated with the production of circulating coins, 

numismatic coins, and protective services, including both 

operating expenses and capital investments: Provided, 

That the aggregate amount of new liabilities and 

obligations incurred during fiscal year [2021] 2022 under 

such section 5136 for circulating coinage and protective 

service capital investments of the United States Mint shall 

not exceed $50,000,000. (Department of the Treasury 

Appropriations Act, 2021.)

 

 

E – Legislative Proposals 

Mint has no legislative proposals. 

 
MINT - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. 

The Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. The Mint will publish a component plan that aligns 

bureau activities and priorities to the Department’s by Spring 2022. 

Circulating Coinage Program 

Circulating coinage includes the minting and issuing of pennies, 5-cent coins, dimes, and quarter 

dollars. The Mint delivers circulating coinage to the FRBs in quantities to support their service 

to commercial banks and other financial institutions. These financial institutions then meet the 

coinage needs of retailers and the public. The Mint recognizes revenues from the sale of 

circulating coins at face value when they are shipped to the FRBs. 

The Mint will continue to mint and issue circulating quarter-dollar coins honoring America’s 

national parks and other national sites, in accordance with the America the Beautiful National 

Parks Quarter Dollar Coin Act of 2008 (Public Law 110-456). In 2021, the program will end 

with one final quarter honoring Tuskegee Airmen National Historic Site (Alabama). The 

Circulating Collectible Coin Redesign Act of 2020 (Public Law 116-330) will begin in 2022 with 

the first redesign and issuance of quarters emblematic of prominent American Women and 

commemorating the 19th Amendment. 

Numismatic Program 

The Mint’s numismatic program provides high-quality versions of circulating coinage, precious 

metal coins, commemorative coins, and national medals for sale directly to the public. For some 

numismatic products, authorizing legislation specifies program requirements, such as design 

theme, mintage level, and duration of product availability. Other programs are structured by law 

to grant the Secretary of the Treasury discretion in determining product specifications. 

Bullion Coins 

The Mint produces and issues gold, silver, platinum, and palladium bullion coins to authorized 

purchasers through the American Eagle, American Buffalo, and America the Beautiful Silver 

Bullion Coin Programs. The authorized purchasers agree to maintain an open, two-way market 

for these coins, ensuring their availability for consumers who desire them for investment 

portfolios. Demand for bullion coins is greatly influenced by the performance of other 

investment options, such as equities or currency markets, and therefore is highly unpredictable. 

The content and purity of the precious metal in the bullion coins are backed by the United States 

Government. 

Other Numismatic Products 

The Mint will continue to mint and issue $1 coins commemorating the important contributions 

made by Indian tribes and individual Native Americans to the development and history of the 

United States in accordance with the Native American $1 Coin Act (Public Law 110-82). 
MINT - 10 

In addition, the Mint started the American Innovation $1 Coin Program (Public Law 115-197) in 

2018. This is a multi-year $1 coin series to honor innovation and innovators for each of the 50 

states, the District of Columbia and the five U.S. territories – Puerto Rico, Guam, American 

Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana 

Islands. Four new $1 coins with distinctive reverse designs will be released each year through 

2032, in the order the states ratified the Constitution of the United States or were admitted to the 

Union. Once a coin is issued for each state, coins will be released for the District of Columbia 

and the territories. The 100th anniversary of the Mint’s last strike of the Morgan Silver Dollar and 

first strike of the Peace Silver Dollar will occur in 2021. In accordance with the 1921 Silver 

Dollar Coin Anniversary Act (Public Law 116-286), the Mint will produce both Peace and 

Morgan Silver Dollars to honor the anniversary of the 1921 designs of both coins. 

Commemorative coins are authorized by law to recognize and honor people, places, events, 

institutions, and other subjects of historic or national significance. Each coin is minted and 

issued by the Mint in a limited quantity and is available only for a limited time. Included in the 

price is a surcharge that is authorized to be paid to the designated recipient organizations, 

assuming all legal requirements have been met. Recipient organizations must use the proceeds 

for the purposes specified in the enabling legislation. In 2021, the Mint has authorization to mint 

commemorative coins honoring Christa McAuliffe (Public Law 116-65) and National Law 

Enforcement (Public Law 116-94). In 2022, the Mint has authorization to mint commemorative 

coins commemorating National Purple Heart Hall of Honor (Public Law 116-247) and Negro 

Leagues Baseball Centennial (Public Law 116-209). 

B – Budget and Performance by Budget Activity 

2.1.1 – Manufacturing Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $3,272,106 $2,203,909 $1,424,770 $1,555,462 $3,462,361 $3,300,500 $3,312,598 

Budget Activity Total $3,272,106 $2,203,909 $1,424,770 $1,555,462 $3,462,361 $3,300,500 $3,312,598 

FTE 1,695 1,645 1,545 1,536 1,539 1,671 1,671 

Performance Measure

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Actual Actual Actual Actual Actual Target Target Target

Circulating On-Time Delivery 100 100 100 100 100 97.5 97.5 97.5 

Customer Satisfaction Index (%) 91 91.7 93.6 93.6 91.7 90.0 87.0 90.0 

Numismatic Sales Units 

(Million Units) 4.2 3.9 3.3 4.3 3.4 3.8 3.6 3.8 

Safety Incident Recordable Rate 2.53 1.96 1.9 1.45 1.29 2.32 2.30 2.16 

Seigniorage per Dollar Issued 

($) 0.52 0.45 0.37 0.4 0.47 0.36 0.41 0.41 
MINT - 11 

Manufacturing Budget and Performance 

($3,312,598,000 from offsetting collections) The Mint will mint and issue circulating coins and 

produce numismatic products, including bullion, to meet demand. 

Description of Performance: 

Several key performance measures are used to gauge the bureau’s progress in achieving its 

strategic goals and to assess its Manufacturing Budget Activity performance. 

Customer Satisfaction Index (CSI) 

The Mint conducts a quarterly survey of a random sample of active numismatic customers. 

The survey is intended to capture customer satisfaction with the Mint’s service performance as a 

coin products supplier and with the quality of specific products. The CSI metric is a quantitative 

score summarizing the survey’s results into one consolidated value. This metric gauges 

performance results in the effort to achieve the Mint’s internal strategic plan goal, 

“Revitalization of products and customer base,” and the Mint’s internal strategic objective linked 

to this goal, “Integrated marketing plan”, which includes metrics for performance, customer 

engagement and customer satisfaction to evaluate the health of the Mint’s sales and marketing 

program. 

In FY 2020, the CSI was 91.7 percent, exceeding its 90.0 percent target. The Mint was able to 

exceed its target by providing high-quality products, adding innovative features, and improving 

the Mint’s customer loyalty program. The Mint has set the target for this metric at 87.0 percent 

for FY 2021 and at 90.0 percent for FY 2022. 

Numismatic Sales Units 

The numismatic sales unit metric measures public demand for coin products sold from 

numismatic operations. This metric also measures performance results achieving the Mint’s 

internal strategic plan goal, “Revitalization of products and customer base” and the Mint’s 

internal strategic objective linked to this goal, “Increasing brand awareness.” 

Numismatics product sales for FY 2020 totaled 3.4 million units, missing its 3.8 million unit 

target. The Mint’s numismatic unit sales fell in FY 2020, likely as a result of the worldwide 

COVID-19 pandemic. Currently the environment for numismatic sales overall remains 

challenging. The performance target for numismatic sales units is 3.6 million for FY 2021 and 

3.8 million for FY 2022. Targets are representative of anticipated results for the various 

numismatic product programs for that year. Therefore, targets tend to vary year over year. To 

meet these targets, the Mint will continue to provide high-quality products and maintain 

outstanding customer service and deepen engagement with coin collectors. 

Safety Incident Recordable Rate

The safety incident recordable rate is the number of injuries and illnesses meeting the 

Occupational Safety and Health Administration recording criteria per 100 full-time workers. 

It measures the occurrence of work-related incidents involving death, lost-time and restricted 

work, loss of consciousness, or medical treatment. The safety incident recordable rate indicates 

performance results in the effort to achieve the Mint’s internal strategic plan goal, “Foster a safe, 
MINT - 12 

flexible, diverse, and engaged workforce,” and the corresponding Mint internal strategic 

objective linked to this goal, “Continue to cultivate a safe working environment.” 

In FY 2020, the total recordable case rate reached 1.29, well below the Mint’s FY 2020 target of 

2.32, and significantly below the most recently published industry average rate of 4.9 for 

comparable private sector manufacturing operations. During FY 2020, the Mint continued 

implementing and updating risk management guidelines to prioritize resources and mitigate risks 

in advance of injuries or catastrophic events at each plant. Mint facility leadership and 

employees continue to interact on a daily basis on the importance of safety. The performance 

targets for the safety incident recordable rate are 2.30 for FY 2021 and 2.16 for FY 2022. The 

Mint is currently on target to exceed its FY 2021 goal. 

Seigniorage per Dollar Issued 

Seigniorage per Dollar Issued is the financial return on circulating operations, calculated as 

seigniorage divided by the total face value of circulating coins shipped to the FRBs. Seigniorage 

is the difference between the face value and cost of producing circulating coinage. It measures 

the cost effectiveness of minting and issuing the United States’ circulating coinage. It also 

measures performance results in achieving the Mint’s internal strategic plan goal, “Advancing 

the circulating mission,” as well as the Mint’s internal strategic objective linked to the goal, 

“Utilize research, analysis, and technology for enhancement of circulating coin output and 

input.” 

At the end of FY 2020, Seigniorage per Dollar Issued was $0.47, well above the FY 2020 

performance target of $0.36 as a result of an increase in circulating units shipped. The FY 2021 

and FY 2022 target increases are a result of anticipated increases in production volumes, as well 

as base metals cost for all denominations, as market prices are expected to escalate. The 

Seigniorage per Dollar Issued performance targets are set at $0.41 for both FY 2021 and 

FY 2022. 

Circulating On-time Delivery 

Circulating On time Delivery is the percentage total scheduled circulating coin orders shipped on 

time to the Federal Reserve Banks. Each month, the FRB provides Mint a report detailing the 

next month's requirements for coinage. Based on this report, the Mint establishes a shipment 

schedule that is captured in the Oracle manufacturing system. Changes to the schedule are only 

made when the FRB provides formal documentation of a requested adjustment to scheduled 

orders. The Mint will continue to respond to FRB orders as needed, as well as make every effort 

to have the appropriate amount of coinage available to accommodate timely shipments. On-time 

delivery to the Federal Reserve Banks (FRB) is the percentage of total scheduled orders shipped 

on time to the FRB. Performance over the past few years has consistently averaged around 100 

percent. On time delivery for FY 2020 was 100 percent. The performance targets for circulating 

on-time delivery is set at 97.5 percent for both FY 2021 and FY 2022. 
MINT - 13 

C – Changes in Performance Measures 

Performance Measure Proposed Change and Justification 

1. Circulating On-Time Delivery The Mint is reactivating this measure to ensure 

the Mint responds to FRB orders as needed, as 

well as make every effort to have the appropriate 

amount of coinage available to accommodate 

timely shipments. 

D – Evidence-Building Activity 

The table below describes the Mint’s major evidence-building activities and corresponding 

resources. Additionally, refer to the Executive Summary for a discussion of Treasury-wide 

evidence-building functions. 

Type of Evidence 

Building Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Evaluation 

Collection and 

analysis of data to 

assess effectiveness 

and efficiency of 

programs, policies, or 

procedures

Estimated share of 

all Evidence-Building 

Activities:

 35%

Major activities: 

 Business cases and After 

Actions Reports 

Series 0343 dedicated to 

safety measurement 

Series 0501 dedicated to 

project analysis 

Series 0510 dedicated to 

program and budget 

analysis 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☐ By external partners 

 (government) 

☐ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Net income 

maximization project for 

numismatic portfolio 

(active) 

Research 

Modeling or other 

systematic use of data 

to explore emerging 

issues or potential 

scenarios to generate 

new knowledge

Estimated share of 

all Evidence-Building 

Activities:

 25%

Major activities: 

 Demand and sales 

forecasting 

 Numismatic product 

pricing 

 Payments market trend 

analysis 

Series 0343 dedicated to 

forecasting and pricing 

analysis 

Series 1101 dedicated to 

forecasting 

Economic research 

contract 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☒ By external partners 

 (government) 

☒ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Long-term circulating 

coin demand trend 

modelling (active) 

 Improved numismatic 

modelling (active) 
MINT - 14 

Type of Evidence 

Building Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Analysis 

Routine and frequent 

use of data that 

produces insights for 

decision making and 

program management

Estimated share of 

all Evidence-Building 

Activities:

 30%

Major activities: 

 Performance 

Measurement 

Series 0343 dedicated to 

safety measurement 

Series 1035 dedicated to 

public engagement 

analysis 

Series 0343 dedicated to 

performance reporting 

Series 0501 dedicated to 

performance reporting 

Series 0510 dedicated to 

performance reporting 

Marketing contract 

☒ For internal policy 

 decision-making 

☒ During internal 

 strategic 

management 

 processes 

☐ By external partners 

 (government) 

☐ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 Data warehouse 

implementation 

(planned) 

 Executive level 

dashboards (planned) 

Statistics 

Collection, 

compilation, and 

processing of data for 

describing or 

estimating 

characteristics or 

insights concerning 

groups

Estimated share of 

all EvidenceBuilding Activities: 

 10%

Major activities: 

 Numismatic customer 

base research 

 Customer satisfaction 

measurement 

Series 1101 dedicated to 

survey research 

Survey research contract 

☒ For internal policy 

 decision-making 

☐ During internal 

 strategic 

management 

 processes 

☐ By external partners 

 (government) 

☐ By external partners 

 (non-government) 

☐ By unaffiliated 

 external researchers 

☐ Other (describe) 

FY21 and FY22 projects: 

 None 

Section III – Additional Information 

A – Summary of Capital Investments 

The Mint’s capital investment requirements are predominantly for manufacturing-type 

equipment. Capital investments, along with its operating expenses, are paid out of the Mint’s 

PEF. Current annual appropriations legislation caps the aggregate amount of new liabilities and 

obligations incurred during a fiscal year for capital investments in circulating coinage operations 

and protective service at $50 million. 

The Mint's manufacturing capital investment projects focus on safety, equipment replacement, 

protection, and facility improvements. 

In addition, the Mint’s capital investments encompass a robust information technology (IT) 

portfolio of investments and programs that modernize and secure the bureau’s infrastructure. 

The bureau’s governance structures ensure that the IT portfolio is managed in accordance with 

cost, schedule, risk, and performance goals, and that expected results and benefits are achieved. 
MINT - 15 

Enterprise architecture reviews assess and reinforce alignment to the bureau’s strategic plan and 

the strategic enterprise direction of the Department of the Treasury. 

In accordance with the Statement of Federal Financial Accounting Standard (SFFAS) No. 6, the 

Condition Index and the Deferred Maintenance assessments for purposes of Federal Real 

Property Profile, the Mint’s maintenance is scheduled and performed regularly to keep the 

manufacturing equipment operating at optimal levels. 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Office of the Comptroller of the 

Currency 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
OCC - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

1.1 – Resource Detail Table ........................................................................................................ 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 6

D – Appropriations Language and Explanation of Changes ...................................................... 6

E – Legislative Proposals ............................................................................................................ 6

Section II – Annual Performance Plan and Report ................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B – Budget and Performance by Budget Activity ...................................................................... 8

2.1.1 – Supervise Resources and Measures ................................................................................ 8

Supervise Budget and Performance ............................................................................................ 8

2.1.2 – Regulate Resources and Measures ................................................................................ 11

Regulate Budget and Performance ............................................................................................ 11

2.1.3 Charter Resources and Measures ..................................................................................... 12

Charter Budget and Performance .............................................................................................. 12

C – Changes in Performance Measures .................................................................................... 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
OCC - 3 

Section I – Budget Request 

A – Mission Statement 

To ensure that national banks and federal savings associations operate in a safe and sound 

manner, provide fair access to financial services, treat customers fairly, and comply with 

applicable laws and regulations. 

B – Summary of the Request 

The Office of the Comptroller of the Currency (OCC) was created by Congress in 1863 to 

charter national banks; oversee a nationwide system of banking institutions; and ensure national 

banks are safe and sound, competitive and profitable, and capable of serving in the best possible 

manner the banking needs of their customers. Effective on July 21, 2011, Title III of the DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), transferred to the 

OCC the responsibility for the supervision of federal savings associations and rulemaking 

authority for all federal savings associations. 

As of September 30, 2020, the OCC supervised 821 national bank charters, 53 federal branches 

and agencies, and 284 federal savings associations. In total, the OCC supervises approximately 

$14.1 trillion in financial institution assets. 

Goals: 

The OCC has established three goals to affirm its mission: 1) The OCC fosters a safe, sound, and 

fair system of national banks, federal savings associations and federal branches of foreign banks 

and agencies of foreign banks that is a source of economic strength and opportunity that meets 

the evolving needs of consumers, businesses, and communities; 2) OCC employees are engaged, 

prepared, and empowered to meet its mission; 3) The OCC operates efficiently and effectively. 

To achieve its goals and objectives, the OCC organizes its programs under three activities: 1) 

Supervise; 2) Regulate; and 3) Charter. Effective supervision and a comprehensive regulatory 

framework are the key tools that the OCC uses to ensure that national banks and federal savings 

associations operate in a safe and sound manner and that they provide fair access to financial 

services and fair treatment of their customers. A robust chartering program allows new entrants 

into the financial services sector while ensuring that they have the necessary capital, managerial, 

and risk management processes to conduct activities in a safe and sound manner. 

The OCC’s priorities focus on strengthening the resiliency of the institutions subject to its 

jurisdiction through its supervisory and regulatory programs and activities. 

The OCC receives no appropriated funds from congress for any portion of its operations. 

Operations are funded primarily (approximately 97 percent) from semiannual assessments levied 

on national banks and federal savings associations. Revenue from investments in Treasury 

securities and other income comprise the remaining three percent of the OCC’s funding. 

FY 2021 and 2022 Priorities 

A major focus of the OCC’s supervisory, regulatory, and charter programs for FY 2021 and 

forward involves reviews of existing regulations to consider changes consistent with safety and 
OCC - 4 

soundness and fair treatment of bank customers, with the goal of enhanced regulatory 

coordination, reducing unnecessary regulatory burden, and increasing examination efficiency. 

The COVID-19 pandemic and efforts to contain its spread in the United States caused a historic 

economic downturn in early 2020. While economic activity is rebounding, there is significant 

ongoing financial risk. The OCC is observing signs that credit risk is transitioning as the 

economic downturn affects customer ability to service debts. Credit risk is evolving as 

government assistance programs expire and unemployment levels remain elevated. Strategic risk 

is an emerging issue due to the impact on bank profitability of the historically low-rate 

environment and potential credit stress. Operational risk is elevated as banks respond to altered 

work environments, an evolving and complex operating environment, and cybersecurity threats. 

Compliance risk is also elevated due to a combination of altered work environments and the 

requirement to quickly implement new federal, state, and proprietary programs designed to 

support businesses and consumers. 

The OCC will conduct examinations based on the risk profile of individual national banks and 

federal savings associations to ensure they are safe and sound, sufficiently capitalized, and 

comply with all laws and regulations, including consumer protection laws and regulations. 

Priorities and activities will include supervisory reviews of commercial and retail credit quality 

and control functions, cybersecurity and operational resiliency, the implementation of pandemic 

assistance programs such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s 

Paycheck Protection Program (PPP) and other federal, state, and bank-initiated forbearance and 

deferred payment programs, the impact of changing interest rate outlooks, implementation and 

preparedness for the current expected credit losses (CECL) accounting standard, preparation for 

the phaseout of the London Interbank Offering Rate (LIBOR), technological innovation, Bank 

Secrecy Act/Anti Money Laundering (BSA/AML) under delegated authority from Treasury’s 

Financial Crimes Enforcement Network (FinCEN) and in line with Federal Financial Institutions 

Examination Council (FFIEC) guidance, and fair access and fair lending. Examiners will work 

to resolve problem national bank and federal savings association situations effectively by 

identifying problems at the earliest possible stage, clearly communicating concerns and 

expectations to bank management through Reports of Examination and appropriate enforcement 

actions and ensuring timely follow-up on needed corrective actions. 

 
OCC - 5 

1.1 – Resource Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Budgetary Resources Actual Estimated Estimated % Change 

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting Collections 

Assessments 0 $1,022,157 0 $1,059,445 0 $1,059,445 NA 0.00% 

Interest 0 $15,330 0 $21,464 0 $21,464 NA 0.00% 

Other Income 0 $18,075 0 $13,791 0 $13,791 NA 0.00% 

Unobligated Balances from Prior 

Years 0 $1,669,476 0 $1,656,000 0 $1,588,000 NA -4.11% 

Total Revenue/Offsetting 

Collections 0 $2,725,038 0 $2,750,700 0 $2,682,700 NA -2.47% 

Expenses/Obligations 

Supervise 3,202 $953,433 3,125 $1,030,945 3,125 $1,038,425 0.00% 0.73% 

Regulate 318 $94,738 332 $109,481 332 $110,275 0.00% 0.73% 

Charter 69 $20,519 66 $21,715 66 $21,873 0.00% 0.73% 

Total Expenses/Obligations 3,589 $1,068,690 3,523 $1,162,141 3,523 $1,170,573 0.00% 0.73% 

Net Results $1,656,348 $1,588,559 $1,512,127 NA -4.81% 

 The Comptroller may impose and collect assessments, fees, or other charges as necessary or appropriate to carry out his responsibilities 

and to meet the expenses of the OCC. 12 U.S.C. 482. At September 30, 2020, the net position of the OCC was $1,574.7 million. 

 The Comptroller has sole authority to determine how OCC funds are obligated and its expenses incurred and paid. 12 U.S.C. 16. 

 OCC funds are not appropriated funds or government monies. 12 U.S.C. 481. 

 As part of its annual budget formulation process, the OCC re‐evaluates the size of the reserve based on a disciplined analysis of the impact 

of material events on its ability to fund operations. 

 
OCC - 6 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 554,034 570,242 575,944 

11.3 - Other than full-time permanent 4,710 3,703 3,703 

11.5 - Other personnel compensation 2,731 2,722 2,722 

11.9 - Personnel Compensation (Total) 561,475 576,667 582,369 

12.0 - Personnel benefits 237,138 272,903 275,632 

13.0 - Benefits for former personnel 342 230 230 

Total Personnel and Compensation Benefits $798,955 $849,800 $858,231 

21.0 - Travel and transportation of persons 17,570 21,186 21,186 

22.0 - Transportation of things 812 2,417 2,417 

23.1 - Rental payments to GSA 68 79 79 

23.2 - Rental payments to others 69,212 66,577 66,577 

23.3 - Communication, utilities, and misc charges 17,725 21,084 21,084 

24.0 - Printing and reproduction 535 592 592 

25.1 - Advisory and assistance services 23,672 21,742 21,742 

25.2 - Other services 26,141 31,117 31,117 

25.3 - Other purchases of goods & serv frm Govt accounts 10,866 8,729 8,729 

25.4 - Operation and maintenance of facilities 5,641 8,622 8,622 

25.7 - Operation and maintenance of equip 58,783 73,618 73,618 

26.0 - Supplies and materials 4,682 6,259 6,259 

31.0 – Equipment 23,830 24,777 24,777 

32.0 - Land and structures 4,856 25,158 25,158 

33.0 - Investments and loans 5,000 0 0 

42.0 - Insurance claims and indemnities 344 384 384 

Total Non-Personnel $269,735 $312,341 $312,341 

Total Budgetary Resources $1,068,690 $1,162,141 $1,170,572 

 

Full-time Equivalents (FTE) 3,589 3,523 3,523 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

 

D – Appropriations Language and Explanation of Changes 

The OCC receives no appropriated funds from Congress. 

E – Legislative Proposals 

The OCC has no legislative proposals. 
OCC - 7 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act (GPRAMA)

of 2010, the Department of the Treasury is currently developing the FY 2022 – 2026 

Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. The OCC will publish a component plan that aligns 

bureau activities and priorities to the Department’s by fall 2022, or within 12 months of the 

confirmation of a new Comptroller of the Currency. 

As such, the OCC’s nationwide staff of bank examiners conducts on-site and off-site reviews of 

banks and provides sustained supervision of these institutions’ operations. Examiners analyze 

asset quality, capital adequacy, earnings, liquidity, and sensitivity to market risk for all banks, 

and assess compliance with federal consumer protection laws and regulations. Examiners also 

evaluate management’s ability to identify and control risk and assess banks’ performance in 

meeting the credit needs of the communities in which they operate, pursuant to the Community 

Reinvestment Act (CRA). 

In addition, under the bank supervision program, the OCC will also: 

 Approve or deny applications for new charters, branches, capital, or other changes in 

corporate or banking structure; 

 Take supervisory and enforcement actions against banks that do not comply with laws and 

regulations or that otherwise engage in unsafe or unsound practices; 

 Remove and prohibit officers and directors, negotiate agreements—both formal (i.e., public) 

and informal (i.e., non-public)—to change banking practices, and issue cease-and-desist 

orders as well as Civil Money Penalties (CMPs); and 

 Issue rules and regulations, legal interpretations, supervisory guidance, and corporate 

decisions governing investments, lending, and other practices. 
OCC - 8 

B – Budget and Performance by Budget Activity 

2.1.1 – Supervise Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimated Estimated 

Expenses/Obligations $975,477 $993,680 $1,105,022 $939,193 $953,433 $1,030,945 $1,038,425 

Budget Activity Total $975,477 $993,680 $1,105,022 $939,193 $953,433 $1,030,945 $1,038,425 

Full-time Equivalents (FTE) 3,441 3,498 3,434 3,289 3,202 3,125 3,125 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of National Banks 

and Federal Savings Associations 

with Composite CAMELS Rating 

1 or 2 

93 94 96 96 96 90 90 90 

Percentage of National Banks 

and Federal Savings Associations 

That Are Categorized as Well 

Capitalized 

96 97 95 98 99 95 95 95 

Percentage of National Banks 

and Federal Savings Associations 

with Consumer Compliance 

Rating of 1 or 2 

98 97 98 98 98 94 94 94 

Rehabilitated National Banks and 

Federal Savings Associations as 

A Percentage of Problem 

National Banks One Year Ago 

(CAMEL 3,4, or 5) 

43 40 44 15 23 40 40 40 

Total OCC Costs Relative to 

Every $100,000 in Bank and 

Federal Savings Associations 

Assets Regulated ($) 

9.65 9.49 9.12 8.07 7.78 8.10 7.71 7.71 

Supervise Budget and Performance 

($1,038,425 from revenue/offsetting collections): 

An effective supervision program is the cornerstone of the OCC’s activities that support its 

strategic goals. Specifically, the Supervise Program consists of ongoing supervision and 

enforcement activities that directly support the OCC’s strategic goal to foster a safe, sound, and 

fair system of national banks, federal savings associations and federal branches of foreign banks 

and agencies of foreign banks that is a source of economic strength and opportunity that meets 

the evolving needs of consumers, businesses, and communities. The condition and risk 

management practices of national banks and federal savings associations, and requiring 

corrective actions when weaknesses are found, directly supports Treasury’s goal to promote 

financial stability. In FYs 2020 and 2021, the OCC took a number of enforcement actions, 

including imposition of large CMPs to address violations of the Bank Secrecy Act and AntiMoney Laundering requirements, and/or failure to maintain effective risk management programs 

for enterprise-wide risk management, compliance risk management, internal controls, or IT risk 

governance that are commensurate with the bank’s size, complexity, and risk profile. 

 
OCC - 9 

Description of Performance: 

Percentage of National Banks and Federal Savings Associations with Composite CAMELS 

Rating of 1 or 2: 

The composite Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and 

Sensitivity (CAMELS) rating reflects the overall condition of a national bank or federal savings 

association. Bank regulatory agencies use the Uniform Financial Institutions Rating System, 

CAMELS, to provide a general framework for evaluating all significant financial, operational, 

and compliance factors inherent in a national bank or federal savings association. The rating 

scale is 1 through 5 of which 1 is the highest rating granted and represents the lowest supervisory 

risk. These CAMELS ratings are assigned at the completion of every supervisory cycle or when 

there is a significant event leading to a change in CAMELS. 

The OCC established a target outcome measure that 90 percent of the institutions under its 

supervision have a composite CAMELS rating of 1 or 2. Such a rating is consistent with the 

strategic goal of a safe and sound banking system, that banks maintain adequate capital and 

liquidity and have strong risk management practices. As of September 30, 2020, 96 percent of 

national banks and federal savings associations earned composite CAMELS ratings of either 1 or 

2. Degradation in CAMELS can reflect weaknesses in risk management systems that need 

corrective action. The OCC, consistent with Treasury’s goals of boosting U.S. economic growth 

and promoting financial stability, has instructed bank examiners to identify and seek corrective 

action at the earliest stage to address potential problems or weaknesses. The OCC’s primary 

focus is to ensure that CAMELS ratings are an accurate reflection of each institution's current 

financial position and risk controls, and thus the OCC would not prematurely restore a favorable 

CAMELS rating. 

 

Percentage of National Banks and Federal Savings Associations that are Considered WellCapitalized: 

The Federal Deposit Insurance Act established a system that classifies insured depository 

institutions into five categories (well capitalized, adequately capitalized, undercapitalized, 

significantly undercapitalized, and critically undercapitalized) based on their capital levels 

relative to their risks. The OCC established a target outcome measure that 95 percent of national 

banks and federal savings associations will meet or exceed the well-capitalized threshold. 

The OCC works closely with problem national banks and federal savings associations to develop 

rehabilitation plans. Such plans typically include directives to improve or restore capital levels. 

These efforts, combined with a more stable operating environment, have resulted in 

improvement in this performance measure since FY 2009. As of September 30, 2020, 99 percent 

of national banks and federal savings associations were classified as well capitalized. 

Percentage of National Banks and Federal Savings Associations with Consumer Compliance 

Rating of 1 or 2: 

To ensure fair access to financial services and fair treatment of national bank and federal savings 

association customers, the OCC evaluates an institution’s compliance with consumer laws and 

regulations. Bank regulatory agencies use the Uniform Financial Institutions Rating System, 

Interagency Consumer Compliance Rating, to provide a general framework for evaluating 

significant consumer compliance factors inherent in an institution. Each institution is assigned a 
OCC - 10 

consumer compliance rating based on an evaluation of its present compliance with consumer 

protection and civil rights statutes and regulations, and the adequacy of its operating systems 

designed to ensure continuing compliance. Ratings are on a scale of 1 through 5 of which 1 is 

the highest rating granted and represents the lowest risk for noncompliance. The target for 

FY 2021 remains unchanged at 94 percent. As of September 30, 2020, national banks and 

federal savings associations continue to show strong compliance with consumer protection 

regulations with 98 percent earning a consumer compliance rating of either 1 or 2. Under the 

Dodd-Frank Act, the OCC has enforcement and supervisory authority for those institutions with 

total assets of no more than $10 billion. 

Rehabilitated National Banks and Federal Savings Associations:

The OCC’s early identification and intervention with problem financial institutions can lead to a 

successful rehabilitation. As of September 30, 2020, 23 percent of national banks and federal 

savings associations with composite CAMELS ratings of 3, 4, or 5 one year ago have improved 

their ratings to either 1 or 2 this year. In addition, there were no national bank or federal savings 

association failures in FY 2020 compared to the 2 failures in FY 2019 and 0 in FY 2018. The 

OCC continues to focus on the early identification and rehabilitation of problem institutions. 

As previously noted, the OCC continuously takes steps through its Supervise and Regulate 

programs to make national banks and federal savings associations more resilient to financial 

stresses and to identify and obtain corrective action at an early stage, when problems can be 

addressed most successfully. These efforts include heightened capital and liquidity standards 

and increased emphasis on the need for stress testing, designed to provide financial institutions 

with stronger capital buffers to withstand unforeseen events. These are multi-year efforts that 

will continue in FY 2021 and beyond. 

Total OCC Costs Relative to Every $100,000 in National Bank and Federal Savings Association 

Assets Regulated: 

The OCC measures the efficiency of its operations while meeting the increasing supervisory 

demands of a growing and more complex national banking system. 

The OCC costs are those reported as total program operating costs that include obligations 

incurred in each fiscal year. National bank and federal savings association assets are those 

reported quarterly by national banks and federal savings associations on the Reports of Condition 

and Income. Total national bank and federal savings association assets represent the growth and 

complexity of the financial institutions under the jurisdiction of the OCC. This measure supports 

the OCC’s strategic goal of efficient use of agency resources. The OCC’s ability to control its 

costs while ensuring the safety and soundness of national banks and federal savings associations 

benefits all national bank and federal savings association customers. As of September 30, 2020, 

total OCC cost relative to every $100,000 in assets regulated was $7.78 compared to the 

FY 2020 target of $8.10. The OCC continues to meet its efforts to ensure that resources are 

used prudently and that programs are carried out in a cost-effective manner ensuring that the 

OCC operates as efficiently and effectively as possible. 
OCC - 11 

2.1.2 – Regulate Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimated Estimated 

Expenses/Obligations $90,463 $92,151 $106,649 $93,323 $94,738 $109,481 $110,275 

Budget Activity Total $90,463 $92,151 $106,649 $93,323 $94,738 $109,481 $110,275 

Full-time Equivalents (FTE) 319 324 331 327 318 332 332 

Regulate Budget and Performance

($110,275 from revenue/offsetting collections): 

The Regulate Program supports the OCC’s strategic goal of a vibrant and diverse system of 

national banks and federal savings associations that supports a robust U.S. economy. 

Specifically, the Regulate Program consists of ongoing activities that result in the establishment 

of regulations, policies, operating guidance, and interpretations of general applicability to 

national banks and federal savings associations. These regulations, policies, and interpretations 

may establish system-wide standards, define acceptable national banking and federal savings 

association practices, provide guidance on risks and responsibilities facing national banks and 

federal savings associations, or prohibit (or restrict) national banking or federal savings 

association practices deemed to be imprudent or unsafe. They also establish standards for 

ensuring fair access to financial services and fair treatment of national bank and federal savings 

association customers. This program includes establishing examination policies and handbooks; 

interpreting administrative, judicial, and congressional proceedings; and establishing the 

applicable legal and supervisory framework for new financial services and products. 

Description of Performance: 

The OCC has recently undertaken action to reduce regulatory burden on and expand economic 

opportunity, including in response to the pandemic. To implement a provision of the CARES 

Act, the agency adopted interim and final rules to temporarily lower the community bank 

leverage ratio and to provide a graduated transition back to its pre-pandemic level. The OCC 

issued a final rule to codify the agency’s longstanding understanding that a bank may transfer a 

loan without affecting the permissible interest term. This rule clarifies banks’ ability to serve 

consumers, businesses, and the broader economy effectively and effectively, particularly in times 

of economic crisis. To address sudden disruptions in financial markets as a result of the 

pandemic, the OCC issued an interim final rule and order to temporarily extend the maturity 

limits for short-term investment funds affected by the market effects of Covid-19. The agency 

also issued, after extensive opportunity for public input, a final rule strengthening and 

modernizing the agency's regulations under the Community Reinvestment Act (CRA). OCC 

actions also supported responsible innovation by regulated institutions. For example, the OCC 

issued an advanced notice of proposed rulemaking inviting comment on its rules governing 

banks’ digital activities. This rulemaking is part of the agency’s ongoing efforts to remain 

responsive to rapidly changing trends and technology developments in the financial marketplace. 

OCC continued to support responsible industry innovation by offering a program of Office 

Hours and Listening Sessions, sponsored by its Office of Innovation, and established a voluntary 
OCC - 12 

pilot program to support the testing of innovative products, services, and processes that could 

benefit consumers, businesses, and communities. 

2.1.3 Charter Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimated Estimated 

Expenses/Obligations $23,978 $24,426 $24,033 $20,212 $20,519 $21,715 $21,873 

Budget Activity Total $23,978 $24,426 $24,033 $20,212 $20,519 $21,715 $21,873 

Full-time Equivalents (FTE) 85 86 75 71 69 66 66 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Licensing 

Applications and Notices 

Completed within 

Established Timeframes 

98 96 97 99 98 95 95 95 

Charter Budget and Performance 

($21,873 from revenue/offsetting collections): 

The Charter Program consists of ongoing activities that result in the chartering of national banks 

and federal savings associations and the evaluation of the permissibility of structures and 

activities of national banks and federal savings associations and their subsidiaries. This includes 

the review and approval of new national bank and federal savings association charters, federal 

branches and agencies, mergers, acquisitions, conversions, business combinations, corporate 

reorganizations, changes in control, operating subsidiaries, branches, relocations, and 

subordinated debt issuances. By supporting the entry of new products and institutions into the 

financial system with a national charter in a manner consistent with safety and soundness, the 

Charter Program supports the OCC’s strategic goals of assuring safety and soundness while 

allowing national banks and federal savings associations to offer a full competitive array of 

financial services. 

Description of Performance: 

Percentage of Licensing Applications and Notices Completed within Established Time Frames: 

The OCC’s timely and effective approval of corporate applications contributes to the nation’s 

economy by enabling national banks and federal savings associations to complete various 

corporate transactions and introduce new financial products and services. Delays in providing 

prompt decisions on applications and notices can deprive a national bank or federal savings 

association of a competitive or business opportunity, create business uncertainties, or diminish 

financial results. Time frames have been established for completing each type of application and 

notice. As of September 30, 2020, the OCC completed 98 percent of national bank and federal 

savings association applications and notices within the required time frame, above the target of 

95 percent. The OCC will continue to meet its Charter Program goals by providing staff 

training, coordinating efforts between charter and supervisory staff on safety and soundness and 

compliance matters, issuing updated procedures, and maintaining an emphasis on accessibility 
OCC - 13 

and early consultation with national bank and federal savings association organizers and others 

proposing national bank and federal savings association structure changes. 

C – Changes in Performance Measures 

OCC has no changes in performance measures. 

D – Evidence-Building Activity 

The table below describes the OCC’s major evidence-building activities and corresponding 

resources. Additionally, refer to the Executive Summary for a discussion of Treasury-wide 

evidence-building functions. 

Type of Evidence 

Building Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Evaluation 

Collection and 

analysis of data to 

assess effectiveness 

and efficiency of 

programs, policies, or 

procedures

Estimated share of all 

Evidence-Building 

Activities: 

 20 %

Major activities: 

 OCC Strategic 

Operating Plan 

FTE Series 0301, 

0343, 0570, 0110, 

2210 

☒ For internal policy 

decision-making 

☒ During internal strategic 

management processes 

☐ By external partners 

(government) 

☐ By external partners 

(non-government) 

☐ By unaffiliated external 

researchers 

☐ Other (describe) 

FY 2021 and FY 2022 

projects: 

 Enterprise Workforce 

Planning

Research 

Modeling or other 

systematic use of data 

to explore emerging 

issues or potential 

scenarios to generate 

new knowledge

Estimated share of all 

Evidence-Building 

Activities: 

 60 %

Major activities: 

 Economic and financial 

research functions 

 Issuance of interpretive 

letters that provide legal 

certainty for 

cryptocurrency 

activities 

FTE Series 0110, 

0343, 0301, 2210 

☒ For internal policy 

decision-making 

☒ During internal strategic 

management processes 

☐ By external partners 

(government) 

☒ By external partners 

(non-government) 

☐ By unaffiliated external 

researchers 

☐ Other (describe)

FY 2021 and FY 2022 

projects: 

 Economics to establish 

policy research 

workgroups in 

numerous areas with 

both internal and 

external SMEs 

 Technology 

Modernization 

 Single Supervisory 

Platform Project 

 Enterprise Data 

Governance 
OCC - 14 

Type of Evidence 

Building Activity 

Major Activities and 

Planned Projects

Resource Types Use 

Analysis 

Routine and frequent 

use of data that 

produces insights for 

decision making and 

program management

Estimated share of all 

Evidence-Building 

Activities: 

 15 %

Major activities: 

 Performance 

Measurement 

 Financial sector and 

policy analysis 

 Strategic analysis 

FTE Series 0301, 

0343, 0570, 0110 

☒ For internal policy 

decision-making 

☒ During internal strategic 

management processes 

☐ By external partners 

(government) 

☐ By external partners 

(non-government) 

☐ By unaffiliated external 

researchers 

☐ Other (describe) 

FY 2021 and FY 2022 

projects: 

 None 

Statistics 

Collection, 

compilation, and 

processing of data for 

describing or 

estimating 

characteristics or 

insights concerning 

groups

Estimated share of all 

Evidence-Building 

Activities: 

 5 %

Major activities: 

 None 

FTE Series 1160 ☒ For internal policy 

decision-making 

☒ During internal strategic 

management processes 

☐ By external partners 

(government) 

☐ By external partners 

(non-government) 

☐ By unaffiliated external 

researchers 

☐ Other (describe) 

FY 2021 and FY 2022 

projects: 

 None 

Section III – Additional Information 

A – Summary of Capital Investments 

Modernizing the OCC’s approach to bank supervision through standardizing data and 

information, reducing duplication of effort, and leveraging technology is an agency priority. A 

single supervisory platform will provide data, information, and analytics to OCC staff to assist in 

making better decisions, in near real time, to support the agency’s mission. 

The OCC Chief, Information Officer’s (CIO) strategy aligns information technology initiatives 

and investments to the OCC’s core mission, including the development of new or enhanced 

applications and services and the disposition of redundant or “end-of-lifecycle” applications, 

capabilities, and services. 

The CIO strategy is implemented through the budget formulation and the Capital Planning and 

Investment Control processes. These processes ensure that all IT investments are aligned with 

the OCC’s mission, goals, objectives, and target enterprise architecture before a project is 

funded. The OCC ensures funding and staff resources to address IT investment priorities and 

considers risk mitigation strategies for IT investments to ensure that they are meeting stated 

performance goals. Performance metrics are linked to the delivery, alignment, and achievement 
OCC - 15 

of the OCC’s strategic program objectives to support evaluation of cost effectiveness for each 

investment. 

FY 2021 and 2022 Plans - The OCC has 4 major IT initiatives in FY 2021 and 2022: 

 Server Support Services (SSS) - The SSS supports the OCC’s server Operations and 

Maintenance, including refreshes of End-of-Life hardware. The infrastructure staff continues 

to build out additional capacity and support server technology refresh, business resiliency, 

and enterprise storage capacity. 

 Telecommunications Services and Support (TSS) - TSS includes telecommunications Wide 

Area Network (WAN) and Local Area Network (LAN) infrastructure. Remote access to the 

OCC systems is facilitated via a virtual private network, dial-in, and cellular wireless access 

using two-factor authentication. This also includes messaging services supporting highly 

mobile bank examiners and the OCC workforce. In FY 2021, the OCC will continue to 

refresh telecommunication infrastructure to increase capacity, maximize uptime, and ensure 

maintenance and security are maintained. 

 End User Services and Support (EUSS) - EUSS includes help desk/customer service support, 

computer hardware and software operations and maintenance, mobile devices, printers, asset 

management, and desktop engineering and image management. In FY 2021, OCC will 

refresh mobile devices and begin the planning for the next computer refresh. 

 Cyber Security (CS) – CS includes technologies, processes and practices aligned to protect 

networks, computers, programs and data from attack, damage, or unauthorized access. In 

alignment with Federal and Treasury requirements, the OCC has transitioned the Agency's 

systems and applications into Information System Continuous Monitoring and Ongoing 

Authorization. In FY 2021, the OCC will continue to deploy additional cloud-based services 

to minimize dependence on the OCC Data Center for critical network security and 

infrastructure services. 

 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


International Programs 

The Department of the Treasury’s FY 2022 budget request for International Programs is included 

in the State, Foreign Operations, and Other Related Programs Appropriation. 

Treasury’s International Programs Justification of Appropriations can be found at the following: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/treasury-international-programs-justification-ofappropriations


Summary of FY 2022 Appropriations Language 

Below is a summary of proposed Treasury appropriations language changes from the FY 2021 

enacted bill. Please note that brackets indicate which material will be deleted, and italics indicate 

which material will be inserted. 

DEPARTMENTAL OFFICES 

SALARIES AND EXPENSES

For necessary expenses of the Departmental Offices including operation and maintenance of the 

Treasury Building and Freedman's Bank Building; hire of passenger motor vehicles; 

maintenance, repairs, and improvements of, and purchase of commercial insurance policies for, 

real properties leased or owned overseas, when necessary for the performance of official 

business; executive direction program activities; international affairs and economic policy 

activities; domestic finance and tax policy activities, including technical assistance to State, 

local, and territorial entities; and Treasury-wide management policies and programs activities, 

[$233,000,000] $270,669,000: Provided, That of the amount appropriated under this heading— 

(1) not to exceed $350,000 is for official reception and representation expenses; (2) not to exceed 

$258,000 is for unforeseen emergencies of a confidential nature to be allocated and expended 

under the direction of the Secretary of the Treasury and to be accounted for solely on the 

Secretary's certificate; and (3) not to exceed [$24,000,000] $34,000,000 shall remain available 

until September 30, [2022] 2023, for— (A) the Treasury-wide Financial Statement Audit and 

Internal Control Program; (B) information technology modernization requirements; (C) the audit, 

oversight, and administration of the Gulf Coast Restoration Trust Fund; (D) the development and 

implementation of programs within the Office of Cybersecurity and Critical Infrastructure 

Protection, including entering into co- operative agreements; (E) operations and maintenance of 

facilities; and (F) international operations. 

OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE 

SALARIES AND EXPENSES 

For the necessary expenses of the Office of Terrorism and Financial Intelligence to safeguard the 

financial system against illicit use and to combat rogue nations, terrorist facilitators, weapons of 

mass destruction proliferators, human rights abusers, money launderers, drug kingpins, and other 

national security threats,[ $175,000,000,] $185,192,000 of which not less than $3,000,000 shall 

be available for addressing human rights violations and corruption, including activities 

authorized by the Global Magnitsky Human Rights Accountability Act (22 U.S.C. 2656 note): 

Provided, That of the amounts appropriated under this heading, up to $10,000,000 shall remain 

available until September 30, [2022] 2023.

CYBERSECURITY ENHANCEMENT ACCOUNT 

For salaries and expenses for enhanced cybersecurity for systems operated by the Department of 

the Treasury, [$18,000,000] $132,027,000, to remain available until September 30, [2023] 2024: 

Provided, That such funds shall supplement and not supplant any other amounts made available 

to the Treasury offices and bureaus for cybersecurity: Provided further, That of the total amount 

made available under this heading [$1,000,000] $4,000,000 shall be available for administrative 

expenses for the Treasury Chief Information Officer to provide oversight of the investments 
made under this heading: Provided further, That such funds shall supplement and not supplant 

any other amounts made available to the Treasury Chief Information Officer. 

DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAM 

For development and acquisition of automatic data processing equipment, software, and services 

and for repairs and renovations to buildings owned by the Department of the Treasury, 

$6,118,000, to remain available until September 30, [2023] 2024: Provided, That these funds 

shall be transferred to accounts and in amounts as necessary to satisfy the requirements of the 

Department's offices, bureaus, and other organizations: Provided further, That this transfer 

authority shall be in addition to any other transfer authority provided in this Act: Provided 

further, That none of the funds appropriated under this heading shall be used to support or 

supplement "Internal Revenue Service, Operations Support" or "Internal Revenue Service, 

Business Systems Modernization". 

OFFICE OF THE INSPECTOR GENERAL 

SALARIES AND EXPENSES 

For necessary expenses of the Office of Inspector General in carrying out the provisions of 

the Inspector General Act of 1978, [$41,044,000] $42,362,000, including hire of passenger 

motor vehicles; of which not to exceed $100,000 shall be available for unforeseen 

emergencies of a confidential nature, to be allocated and expended under the direction of the 

Inspector General of the Treasury; of which up to $2,800,000 to remain available until 

September 30, [2022] 2023, shall be for audits and investigations conducted pursuant to 

section 1608 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and 

Revived Economies of the Gulf Coast States Act of 2012 (33 U.S.C. 1321 note); and of which 

not to exceed $1,000 shall be available for official reception and representation expenses. 

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES 

For necessary expenses of the Committee on Foreign Investment in the United States, 

$20,000,000, to remain available until expended: Provided, That the chair- person of the 

Committee may transfer such amounts to any department or agency represented on the 

Committee (including the Department of the Treasury) subject to advance notification to the 

Committees on Appropriations of the House of Representatives and the Senate: Provided 

further, That amounts so transferred shall re- main available until expended for expenses of 

implementing section 721 of the Defense Production Act of 1950, as amended (50 U.S.C. 4565), 

and shall be available in addition to any other funds available to any department or agency: 

Provided further, That fees authorized by section 721(p) of such Act shall be credited to this 

appropriation as offsetting collections: Provided further, That the total amount ap- propriated 

under this heading from the general fund shall be reduced as such offset- ting collections are 

received during fiscal year [2021] 2022, so as to result in a total appropriation from the 

general fund estimated at not more than [$15,000,000]$0. For necessary expenses of the 

Committee on Foreign Investment in the United States, $20,000,000, to remain available until 

expended: Provided, That the chair- person of the Committee may transfer such amounts to any 

department or agency represented on the Committee (including the Department of the Treasury) 

subject to advance notification to the Committees on Appropriations of the House of 

Representatives and the Senate: Provided further, That amounts so transferred shall re- main 
available until expended for expenses of implementing section 721 of the Defense Production 

Act of 1950, as amended (50 U.S.C. 4565), and shall be available in addition to any other funds 

available to any department or agency: Provided further, That fees authorized by section 721(p) 

of such Act shall be credited to this appropriation as offsetting collections: Provided further, 

That the total amount ap- propriated under this heading from the general fund shall be reduced as 

such offset- ting collections are received during fiscal year [2021] 2022, so as to result in a total 

appropriation from the general fund estimated at not more than [$15,000,000] $0. 

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION 

SALARIES AND EXPENSES 

For necessary expenses of the Treasury Inspector General for Tax Administration in carrying out 

the Inspector General Act of 1978, as amended, including purchase and hire of passenger motor 

vehicles (31 U.S.C. 1343(b)); and services authorized by 5 U.S.C. 3109, at such rates as may be 

determined by the Inspector General for Tax Administration; [$170,250,000]$175,762,000, of 

which $5,000,000 shall remain available until September 30, [2022]2023; of which not to exceed 

$6,000,000 shall be available for official travel expenses; of which not to exceed $500,000 shall 

be available for unforeseen emergencies of a confidential nature, to be allocated and expended 

under the direction of the Inspector General for Tax Administration; and of which not to exceed 

$1,500 shall be available for official reception and representation expenses. For necessary 

expenses of the Treasury Inspector General for Tax Administration in carrying out the Inspector 

General Act of 1978, as amended, including purchase and hire of passenger motor vehicles (31 

U.S.C. 1343(b)); and services authorized by 5 U.S.C. 3109, at such rates as may be determined 

by the Inspector General for Tax Administration; [$170,250,000] $175,762,000, of which 

$5,000,000 shall remain available until September 30, [2022] 2023; of which not to exceed 

$6,000,000 shall be available for official travel expenses; of which not to exceed $500,000 shall 

be available for unforeseen emergencies of a confidential nature, to be allocated and expended 

under the direction of the Inspector General for Tax Administration; and of which not to exceed 

$1,500 shall be available for official reception and representation expenses. 

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM 

ACCOUNT 

Act of 1994 (subtitle A of title I of Public Law 103–325), including services authorized by 

section 3109 of title 5, United States Code, but at rates for individuals not to exceed the per diem 

rate equivalent to the rate for EX-III, [$270,000,000] $330,000,000. Of the amount appropriated 

under this heading—(1) not less than [$167,000,000] $217,383,000, notwithstanding section 

108(e) of Public Law 103–325 (12 U.S.C. 4707(e)) with regard to Small and/or Emerging 

Community Development Financial Institutions Assistance awards, is available until September 

30, [2022] 2023, for financial assistance and technical assistance under subparagraphs (A) and 

(B) of section 108(a)(1), respectively, of Public Law 103–325 (12 U.S.C. 4707(a)(1)(A) and 

(B)), of which up to $1,600,000 may be available for training and outreach under section 109 of 

Public Law 103–325 (12U.S.C. 4708), of which up to [$2,374,500] $3,153,750 may be used for 

the cost of direct loans, of which up to $6,000,000, notwithstanding subsection (d) of section 108 

of Public Law 103–325 (12 U.S.C. 4707 (d)), may be available to provide financial assistance, 

technical assistance, training, and outreach to community development financial institutions to 

expand investments that benefit individuals with disabilities, and of which not less than 

$2,000,000 shall be for the Economic Mobility Corps to be operated in conjunction with the 
Corporation for National and Community Service, pursuant to 42 U.S.C. 12571: Provided, That 

the cost of direct and guaranteed loans, including the cost of modifying such loans, shall be as 

defined in section 502 of the Congressional Budget Act of 1974: Provided further, That these 

funds are available to subsidize gross obligations for the principal amount of direct loans not to 

exceed $25,000,000: Provided further, That of the funds provided under this paragraph, 

excluding those made to community development financial institutions to expand investments 

that benefit individuals with disabilities and those made to community development financial 

institutions that serve populations living in persistent poverty counties, the CDFI Fund shall 

prioritize Financial Assistance awards to organizations that invest and lend in high- poverty 

areas: Provided further, That for purposes of this section, the term "high- poverty area" means 

any census tract with a poverty rate of at least 20 percent as measured by the 2011–2015 5-year 

data series available from the American Community Survey of the Bureau of the Census for all 

States and Puerto Rico or with a poverty rate of at least 20 percent as measured by the 2010 

Island areas Decennial Census data for any territory or possession of the United States; (2) Not 

less than [$16,500,000] $21,500,000, notwithstanding section 108(e) of Public Law 103–325 (12 

U.S.C. 4707(e)), is available until September 30, [2022] 2023, for financial assistance, technical 

assistance, training, and outreach programs designed to benefit Native American, Native 

Hawaiian, and Alaska Native communities and provided primarily through qualified community 

development lender organizations with experience and expertise in community development 

banking and lending in Indian country, Native American organizations, Tribes and Tribal 

organizations, and other suitable providers; (3) not less than $26,000,000 is available until 

September 30, [2022] 2023, for the Bank Enterprise Award program; (4) not less than 

$23,000,000, notwithstanding subsections (d) and (e) of section 108 of Public Law 103–325 (12 

U.S.C. 4707(d) and (e)), is available until September 30, [2022] 2023, for a Healthy Food 

Financing Initiative to provide financial assistance, technical assistance, training, and outreach to 

community development financial institutions for the purpose of offering affordable financing 

and technical assistance to expand the availability of healthy food options in dis- tressed 

communities; (5) not less than $8,500,000 is available until September 30, [2022] 2023, to 

provide grants for loan loss reserve funds and to provide technical assistance for small dollar 

loan programs under section 122 of Public Law 103–325 (12 U.S.C. 4719): Provided, That 

sections 108(d) and 122(b)(2) of such Public Law shall not apply to the provision of such grants 

and technical assistance; up to [$29,000,000] $33,617,000 is available until September 30, 

[2021]2022, for administrative expenses, including administration of CDFI Fund programs and 

the New Markets Tax Credit Program, of which not less than $1,000,000 is for the development 

of tools to better assess and inform CDFI in- vestment performance and CDFI Fund program 

impacts, and up to $300,000 is for administrative expenses to carry out the direct loan program; 

and (7) during fiscal year [2021] 2022, none of the funds available under this heading are 

available for the cost, as defined in section 502 of the Congressional Budget Act of 1974, of 

commitments to guarantee bonds and notes under section 114A of the Riegle Community 

Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4713a): Provided, That 

commitments to guarantee bonds and notes under such section 114A shall not exceed 

$500,000,000: Provided further, That such section 114A shall remain in effect until December 

31, [2021] 2022: Provided further, That of the funds awarded under this heading, except those 

provided for the Economic Mobility Corps, not less than 10 percent shall be used for awards that 

support investments that serve populations living in persistent poverty counties: Provided further, 

That for the purposes of this paragraph and paragraph (1), the term "persistent poverty counties" 
means any county, including county equivalent areas in Puerto Rico, that has had 20 percent or 

more of its population living in poverty over the past 30 years, as measured by the 1990 and 

2000 decennial censuses and the 2011–2015 5-year data series available from the American 

Community Survey of the Bureau of the Census or any other territory or possession of the United 

States that has had 20 percent or more of its population living in poverty over the past 30 years, 

as measured by the 1990, 2000 and 2010 Island Areas Decennial Censuses, or equivalent data, of 

the Bureau of the Census.

SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF 

PROGRAM 

SALARIES AND EXPENSES 

For necessary expenses of the Office of the Special Inspector General in carrying out the 

provisions of the Emergency Economic Stabilization Act of 2008 (Public Law 110–343), 

[$19,000,000] $17,000,000. 

FINANCIAL CRIMES ENFORCEMENT NETWORK 

SALARIES AND EXPENSES 

For necessary expenses of the Financial Crimes Enforcement Network, including hire of 

passenger motor vehicles; travel and training expenses of non-Federal and foreign government 

personnel to attend meetings and training concerned with domestic and foreign financial 

intelligence activities, law enforcement, and financial regulation; services authorized by 5 

U.S.C. 3109; not to exceed [$12,000] $45,000 for official reception and representation expenses; 

and for assistance to Federal law enforcement agencies, with or without reimbursement, 

[$126,963,000] $190,539,000, of which not to exceed [$34,335,000] $94,600,000 shall remain 

available until September 30, [2023] 2024 for information technology and to implement 

Division F of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal 

Year 2021 (Public Law 116–283). 

BUREAU OF THE FISCAL SERVICE 

SALARIES AND EXPENSES 

For necessary expenses of operations of the Bureau of the Fiscal Service, [$345,569,000] 

$360,266,000; of which not to exceed $8,000,000, to remain available until September 30, 

[2023] 2024, is for information systems modernization initiatives; and of which $5,000 shall be 

available for official reception and representation expenses. In addition, $165,000, to be derived 

from the Oil Spill Liability Trust Fund to re- imburse administrative and personnel expenses for 

financial management of the Fund, as authorized by section 1012 of Public Law 101–380. 

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU 

SALARIES AND EXPENSES 

For necessary expenses of carrying out section 1111 of the Homeland Security Act of 2002, 

including hire of passenger motor vehicles, [$124,337,000] $131,330,000; of which $5,000,000 

shall remain available until September 30, 2023; of which not to exceed $6,000 shall be 

available for official reception and representation expenses; and of which not to exceed $50,000 

shall be available for cooperative research and development programs for laboratory services; and 

provision of laboratory assistance to State and local agencies with or without reimbursement[: 
Provided, That of the amount appropriated under this heading, $5,000,000 shall be for the costs 

of accelerating the processing of formula and label applications: Provided further, That of the 

amount appropriated under this heading, $5,000,000, to remain available until September 30, 

2022, shall be for the costs as- sociated with enforcement of and education regarding the trade 

practice provisions of the Federal Alcohol Administration Act (27 U.S.C. 201 et seq.)]. 

UNITED STATES MINT PUBLIC ENTERPRISE FUND 

Pursuant to section 5136 of title 31, United States Code, the United States Mint is provided 

funding through the United States Mint Public Enterprise Fund for costs associated with the 

production of circulating coins, numismatic coins, and protective services, including both 

operating expenses and capital investments: Provided, That the aggregate amount of new 

liabilities and obligations incurred during fiscal year [2021] 2022 under such section 5136 for 

circulating coinage and protective service capital investments of the United States Mint shall not 

exceed $50,000,000. 
INTERNAL REVENUE SERVICE 

TAXPAYER SERVICES 

For necessary expenses of the Internal Revenue Service to provide taxpayer ser- vices, including 

pre-filing assistance and education, filing and account services, taxpayer advocacy services, and 

other services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the 

Commissioner, [$2,555,606,000] $2,940,876,000, of which not less than $11,000,0000 shall 

be for the Tax Counseling for the Elderly Program, of which not less than $13,000,000 shall be 

available for low-income taxpayer clinic grants, of which not less than $30,000,000, to remain 

available until September 30, [2022] 2023, shall be available for the Community Volunteer 

Income Tax Assistance Matching Grants Program for tax return preparation assistance, and of 

which not less than $211,000,000 shall be available for operating expenses of the Taxpayer 

Advocate Service: Provided, That of the amounts made available for the Taxpayer Advocate 

Service, not less than$5,500,000 shall be for identity theft and refund fraud casework. 

ENFORCEMENT 

For necessary expenses for tax enforcement activities of the Internal Revenue Service to 

determine and collect owed taxes, to provide legal and litigation support, to conduct criminal 

investigations, to enforce criminal statutes related to violations of internal revenue laws and other 

financial crimes, to purchase and hire passenger motor vehicles (31 U.S.C. 1343(b)), and to 

provide other services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the 

Commissioner, [$5,212,622,000] $5,462,823,000, of which not to exceed $250,000,000 shall 

remain available until September 30, [2022] 2023; of which not less than $60,257,000 shall be 

for the Interagency Crime and Drug Enforcement program; and of which not to exceed 

[$15,000,000] $21,000,000 shall be for investigative technology for the Criminal Investigation 

Division: Provided, That the amount made available for investigative technology for the Criminal 

Investigation Division shall be in addition to amounts made available for the Criminal 

Investigation Division under the "Operations Support" heading. In addition, $287,452,000, for an 

additional amount to meet the terms of a concur rent resolution on the budget for tax enforcement 

activities under this heading, including tax compliance to address the Federal tax gap: 

Provided, That such additional amounts may not be transferred or reprogrammed for any other 

activity.

OPERATIONS SUPPORT 

For necessary expenses of the Internal Revenue Service to support taxpayer services and 

enforcement programs, including rent payments; facilities services; printing; postage; physical 

security; headquarters and other IRS-wide administration activities; research and statistics of 

income; telecommunications; information technology development, enhancement, operations, 

maintenance, and security; the hire of passenger motor vehicles (31 U.S.C. 1343(b)); the 

operations of the Internal Revenue Service Oversight Board; and other services as authorized by 

5 U.S.C. 3109, at such rates as may be determined by the Commissioner; [$3,928,102,000] 

$4,448,195,000, of which not to exceed $275,000,000 shall remain available until September 30, 

[2022] 2023; of which not to exceed $10,000,000 shall remain available until expended for 

acquisition of equipment and construction, repair and renovation of facilities; of which not to 

exceed $1,000,000 shall remain available until September 30, [2023] 2024, for research; of 

which not less than $10,000,000, to remain available until expended, shall be available for 
establishment of an application through which entities registering and renewing registrations in 

the System for Award Management may request an authenticated electronic certification stating 

that the entity does or does not have a seriously delinquent tax debt; and of which not to exceed 

$20,000 shall be for official reception and representation expenses: Provided, That not later than 

30 days after the end of each quarter, the Internal Revenue Service shall submit a report to the 

Committees on Appropriations of the House of Representatives and the Senate and the 

Comptroller General of the United States detailing major information technology investments in 

the Internal Revenue Service Integrated Modernization Business Plan portfolio, including 

detailed, plain language summaries on the status of plans, costs, and results; prior results and 

actual expenditures of the prior quarter; upcoming deliverables and costs for the fiscal year; risks 

and mitigation strategies associated with ongoing work; reasons for any cost or schedule 

variances; and total expenditures by fiscal year: Provided further, That the Internal Revenue 

Service shall include, in its budget justification for fiscal year [2022] 2023, a summary of cost 

and schedule performance information for its major information technology systems. In addition, 

$129,445,000, for an additional amount to meet the terms of a concur- rent resolution on the 

budget for tax enforcement activities under this heading, including tax compliance to address 

the Federal tax gap: Provided, That such additional amounts may not be transferred or 

reprogrammed for any other activity. 

BUSINESS SYSTEMS MODERNIZATION 

For necessary expenses of the Internal Revenue Service's business systems modernization 

program,[ $222,724,000] $305,032,000, to remain available until September 30, [2023] 

2024, for the capital asset acquisition of information techno- logy systems, including 

management and related contractual costs of said acquisitions, including related Internal 

Revenue Service labor costs, and contractual costs associated with operations authorized by 5 

U.S.C. 3109: Provided, That not later than 30 days after the end of each quarter, the Internal 

Revenue Service shall submit a report to the Committees on Appropriations of the House of 

Representatives and the Senate and the Comptroller General of the United States detailing major 

information technology investments in the Internal Revenue Service Integrated Modernization 

Business Plan portfolio, including detailed, plain language summaries on the status of plans, 

costs, and results; prior results and actual expenditures of the prior quarter; upcoming 

deliverables and costs for the fiscal year; risks and mitigation strategies associated with ongoing 

work; reasons for any cost or schedule variances; and total expenditures by fiscal year. 

ADMINISTRATIVE PROVISIONS— INTERNAL REVENUE SERVICE 

SEC. 101. Not to exceed 4 percent of the appropriation made available in this Act to the 

Internal Revenue Service under the "Enforcement" heading, and not to exceed 5 percent of any 

other appropriation made available in this Act to the Internal Revenue Service, may be 

transferred to any other Internal Revenue Service appropriation upon [the] advance [approval of] 

notice to the Committees on Appropriations of the House of Representatives and the Senate. 

SEC. 102. The Internal Revenue Service shall maintain an employee training program, which 

shall include the following topics: taxpayers' rights, dealing courteously with taxpayers, crosscultural relations, ethics, and the impartial application of tax law. 

SEC. 103. The Internal Revenue Service shall institute and enforce policies and procedures that 

will safeguard the confidentiality of taxpayer information and protect taxpayers against identity 

theft. 
SEC. 104. Funds made available by this or any other Act to the Internal Revenue Service shall 

be available for improved facilities and increased staffing to provide sufficient and effective 1–

800 help line service for taxpayers. The Commissioner shall continue to make improvements to 

the Internal Revenue Service 1–800 help line service a priority and allocate resources necessary 

to enhance the response time to taxpayer communications, particularly with regard to victims of 

tax-related crimes. 

SEC. 105. The Internal Revenue Service shall issue a notice of confirmation of any address 

change relating to an employer making employment tax payments, and such notice shall be sent 

to both the employer's former and new address and an officer or employee of the Internal 

Revenue Service shall give special consideration to an offer-in-compromise from a taxpayer 

who has been the victim of fraud by a third party payroll tax preparer. 

SEC. 106. None of the funds made available under this Act may be used by the Internal 

Revenue Service to target citizens of the United States for exercising any right guaranteed under 

the First Amendment to the Constitution of the United States. 

SEC. 107. None of the funds made available in this Act may be used by the Internal Revenue 

Service to target groups for regulatory scrutiny based on their ideological beliefs. 

SEC. 108. None of funds made available by this Act to the Internal Revenue Service shall be 

obligated or expended on conferences that do not adhere to the procedures, verification processes, 

documentation requirements, and policies issued by the Chief Financial Officer, Human Capital 

Office, and Agency-Wide Shared Services as a result of the recommendations in the report 

published on May 31, 2013, by the Treasury Inspector General for Tax Administration entitled 

"Review of the August 2010 Small Business/Self-Employed Division's Conference in Anaheim, 

California" (Reference Number 2013–10–037). 

SEC. 109. None of the funds made available in this Act to the Internal Revenue Service may be 

obligated or expended (1) to make a payment to any employee under a bonus, award, or 

recognition program; or (2) under any hiring or personnel selection process with respect to rehiring a former employee; unless such program or process takes into account the conduct and 

Federal tax compliance of such employee or former employee. 

SEC. 110. None of the funds made available by this Act may be used in contravention of section 

6103 of the Internal Revenue Code of 1986 (relating to confidentiality and disclosure of returns 

and return information). 

SEC. 111. Notwithstanding any Congressional notification requirements for a re programming 

of funds in this Act, funds provided in this Act for the Internal Revenue Service shall be available 

for obligation and expenditure through a reprogramming of funds that augments or reduces 

existing programs, projects, or activities by up to $10,000,000 without prior Congressional 

notification of such action. 

SEC. 112. There is hereby established the Internal Revenue Service Working Capital Fund 

(Fund), which shall be available without fiscal year limitation, for expenses necessary for 

facility services, technology, and other centralized services that the Commissioner of Internal 

Revenue, subject to prior notice to the Office of Management and Budget, deems appropriate 

and advantageous to provide on a reimbursable basis: Provided, That amounts deposited in the 

Fund shall be in addition to funds otherwise available for such purposes, and shall remain 

available until expended: Provided further, That the Fund may receive advances and 

reimbursements from funds available to the business units and offices of the Internal Revenue 

Service for which such centralized services are performed at rates which will return in full all 

expenses of operation: Provided further, That unobligated balances of expired amounts 
appropriated or otherwise made available for this or any succeeding fiscal year to the Internal 

Revenue Service may be transferred and merged into the Fund no later than the end of the fifth 

fiscal year after the last fiscal year for which such funds are available for the purposes for which 

appropriated: Provided further, That no funds may be transferred pursuant to the previous 

proviso unless advance notification is provided to the Committees on Appropriations of the 

House of Representatives and the Senate. 

ADMINISTRATIVE PROVISIONS—DEPARTMENT OF THE TREASURY 

SEC. 111. Appropriations to the Department of the Treasury in this Act shall be available for 

uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901), including maintenance, 

repairs, and cleaning; purchase of insurance for official motor vehicles operated in foreign 

countries; purchase of motor vehicles without regard to the general purchase price limitations for 

vehicles purchased and used overseas for the current fiscal year; entering into contracts with the 

Department of State for the furnishing of health and medical services to employees and their 

dependents serving in foreign countries; and services authorized by 5 U.S.C. 3109. 

SEC. 112. Not to exceed 2 percent of any appropriations in this title made available under the 

headings "Departmental Offices—Salaries and Expenses", "Office of Inspector General", 

"Special Inspector General for the Troubled Asset Relief Program", "Financial Crimes 

Enforcement Network", "Bureau of the Fiscal Service", and "Alcohol and Tobacco Tax and 

Trade Bureau" may be transferred between such appropriations upon the advance [approval] 

notification of the Committees on Appropriations of the House of Representatives and the 

Senate: Provided, That no transfer under this section may increase or decrease any such 

appropriation by more than 2 percent. 

SEC. 113. Not to exceed 2 percent of any appropriation made available in this Act to the Internal 

Revenue Service may be transferred to the Treasury Inspector General for Tax Administration's 

appropriation upon the advance [approval] notification of the Committees on Appropriations of 

the House of Representatives and the Senate: Provided, That no transfer may increase or decrease 

any such appropriation by more than 2 percent. 

SEC. 114. None of the funds appropriated in this Act or otherwise available to the Department 

of the Treasury or the Bureau of Engraving and Printing may be used to redesign the $1 Federal 

Reserve note. 

SEC. 115. The Secretary of the Treasury may transfer funds from the "Bureau of the Fiscal 

Service—Salaries and Expenses" to the Debt Collection Fund as necessary to cover the costs of 

debt collection: Provided, That such amounts shall be reimbursed to such salaries and expenses 

account from debt collections received in the Debt Collection Fund. 

SEC. 116. None of the funds appropriated or otherwise made available by this or any other Act 

may be used by the United States Mint to construct or operate any museum without the [explicit 

approval] prior notification of the Committees on Appropriations of the House of 

Representatives and the Senate, the House Committee on Financial Services, and the Senate 

Committee on Banking, Housing, and Urban Affairs. 

SEC. 117. None of the funds appropriated or otherwise made available by this or any other Act 

or source to the Department of the Treasury, the Bureau of Engraving and Printing, and the 

United States Mint, individually or collectively, may be used to consolidate any or all functions 

of the Bureau of Engraving and Printing and the United States Mint without the [explicit 

approval] prior notification of the House Committee on Financial Services; the Senate 

Committee on Banking, Housing, and Urban Affairs; and the Committees on Appropriations of 
the House of Representatives and the Senate. 

SEC. 118. Funds appropriated by this Act, or made available by the transfer of funds in this 

Act, for the Department of the Treasury's intelligence or intelligence related activities are 

deemed to be specifically authorized by the Congress for purposes of section 504 of the 

National Security Act of 1947 (50 U.S.C. 414) during fiscal year [2021] 2022 until the 

enactment of the Intelligence Authorization Act for Fiscal Year [2021] 2022.

SEC. 119. Not to exceed $5,000 shall be made available from the Bureau of Engraving and 

Printing's Industrial Revolving Fund for necessary official reception and representation 

expenses. 

SEC. 120. The Secretary of the Treasury shall submit a Capital Investment Plan to the 

Committees on Appropriations of the House of Representatives and the Senate not later than 30 

days following the submission of the annual budget submitted by the President: Provided, That 

such Capital Investment Plan shall include capital investment spending from all accounts within 

the Department of the Treasury, including but not limited to the Department-wide Systems and 

Capital Investment Programs account, Treasury Franchise Fund account, and the Treasury 

Forfeiture Fund account: Provided further, That such Capital Investment Plan shall include 

expenditures occurring in previous fiscal years for each capital investment project that has not 

been fully completed. 

SEC. 121. Within 45 days after the date of enactment of this Act, the Secretary of the Treasury 

shall submit an itemized report to the Committees on Appropriations of the House of 

Representatives and the Senate on the amount of total funds charged to each office by the 

Franchise Fund including the amount charged for each service provided by the Franchise Fund to 

each office, a detailed description of the services, a detailed explanation of how each charge for 

each service is calculated, and a de- scription of the role customers have in governing in the 

Franchise Fund. 

SEC. 122. During fiscal year [2021] 2022— (1) none of the funds made available in this or 

any other Act may be used by the Department of the Treasury, including the Internal 

Revenue Service, to issue, revise, or finalize any regulation, revenue ruling, or other 

guidance not limited to a particular taxpayer relating to the standard which is used to 

determine whether an organization is operated exclusively for the promotion of social 

welfare for purposes of section 501(c)(4) of the Internal Revenue Code of 1986 (including 

the proposed regulations published at 78 Fed. Reg. 71535 (November 29, 2013)); and (2) 

the standard and definitions as in effect on January 1, 2010, which are used to make such 

determinations shall apply after the date of the enactment of this Act for purposes of 

determining status under section 501(c)(4) of such Code of organizations created on, 

before, or after such date. 

SEC. 123. (a) Not later than 60 days after the end of each quarter, [the Office of Financial 

Stability and] the Office of Financial Research shall submit reports on their activities to the 

Committees on Appropriations of the House of Representatives and the Senate, the 

Committee on Financial Services of the House of Representatives and the Senate 

Committee on Banking, Housing, and Urban Affairs. 

(b) The reports required under subsection (a) shall include— (1) the obligations made 

during the previous quarter by object class, office, and activity; (2) the estimated 

obligations for the remainder of the fiscal year by object class, office, and activity; (3) the 

number of full-time equivalents within each office during the previous quarter; (4) the 

estimated number of full-time equivalents within each office for the remainder of the fiscal 
year; and (5) actions taken to achieve the goals, objectives, and performance measures of 

each office. (c) At the request of any such Committees specified in subsection (a), [the 

Office of Financial Stability and] the Office of Financial Research shall make officials 

available to testify on the contents of the reports required under subsection (a). 

[SEC. 124. In addition to the amounts otherwise made available to the Department of the 

Treasury, $25,000,000, to remain available until expended, shall be for expenses associated 

with digitization and distribution of the Department's records of matured savings bonds that 

have not been redeemed.] 

SEC. 124. Of the amounts appropriated in section 4027(a) of the Coronavirus Aid, Relief, and 

Economic Security Act (15 U.S.C. 9061) that are available for obligation as a result of the 

deobligation of amounts that were, as of January 9, 2021, obligated for the credit subsidy cost of 

loans and loan guarantees that the Secretary of the Treasury had committed under paragraphs 

(1) through (3) of section 4003(b) of the Coronavirus Aid, Relief, and Economic Security Act 

(15 U.S.C. 9042(b)(1)-(3)), $25,000,000 shall be available to the Special Inspector General for 

Pandemic Recovery to carry out section 4018 of the Coronavirus Aid, Relief, and Economic 

Security Act (15 U.S.C. 9053): Provided, That such amounts shall be in addition to any other 

amounts available for such purpose. 

SEC. 125. Notwithstanding any other provision of law, the unobligated balances from amounts 

made available to the Secretary of the Treasury for administrative expenses pursuant to sections 

4003(f) and 4112(b) of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 

116–136); section 421(f)(2) of Division N of the Consolidated Appropriations Act, 2021 (Public 

Law 116–260); sections 3201(a)(2)(B), 3206(d)(1)(A), and 7301(b)(5) of the American Rescue 

Plan Act of 2021 (Public Law 117–2); and section 602(a)(2) of the Social Security Act, as added 

by section 9901 of the American Rescue Plan Act of 2021 (Public Law 117–2), shall be available 

for any administrative expenses determined by the Secretary of the Treasury to be necessary to 

respond to the coronavirus, including but not limited to expenses necessary to implement any 

provision of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136), 

Division N of the Consolidated Appropriations Act, 2021 (Public Law 116–260), the American 

Rescue Plan Act (Public Law 117–2), or title VI of the Social Security Act: Provided, That such 

un- obligated balances shall be available in addition to any other appropriations provided for 

such purposes. 

SEC. 126. Section 121 of the Emergency Economic Stabilization Act of 2008 (12U.S.C. 5231) is 

amended in subsection (e)(1)(B)(ii) by striking "subparagraph" and all that follows through the 

period at the end and inserting "subparagraph, the Special Inspector General may not make any 

appointment that exceeds 24 months or that extends beyond the date on which the Special 

Inspector General terminates under subsection (k).”