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The Fiscal Service

FY 2013

President’s Budget

Submission
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Table of Contents

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

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

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

1B – Mission, Priorities and Context........................................................................................................................3

Section 2 – Budget Adjustments and Appropriation Language ..............................................................................9

2.1 – Budget Adjustments Table...............................................................................................................................9

2A – Budget Increases and Decreases Description...................................................................................................9

2.2 – Operating Levels Table..................................................................................................................................12

2B – Permanent, Indefinite Appropriations............................................................................................................14

2C – Legislative Proposals......................................................................................................................................15

Section 3 – Budget and Performance Plan ..............................................................................................................17

3A – Collections .....................................................................................................................................................17

3.1.1 – Collections Budget and Performance Report and Plan ...............................................................................18

3B – Debt Collection ..............................................................................................................................................19

3.1.2 – Debt Collection Budget and Performance Report and Plan ........................................................................20

3C – GOVerify Business Center.............................................................................................................................21

3.1.3 – GOVerify Business Center Budget and Performance Report and Plan ......................................................21

3D – Government Agency Investment Services (GAIS) ........................................................................................22

3.1.4 – Government Agency Investment Services Budget and Performance Report and Plan ...............................23

3E – Government-wide Accounting and Reporting (GWA)...................................................................................24

3.1.5 – Government-wide Accounting and Reporting Budget and Performance Report and Plan .........................25

3F – Payments.........................................................................................................................................................26

3.1.6 – Payments Budget and Performance Report and Plan..................................................................................28

3G – Retail Securities Services (RSS) ....................................................................................................................28

3.1.7 – Retail Securities Services Budget and Performance Report and Plan.........................................................31

3H – Summary Debt Accounting (SDA) ................................................................................................................31

3.1.8 – Summary Debt Accounting Budget and Performance Report and Plan......................................................33

3I – Wholesale Securities Services (WSS) .............................................................................................................33

3.1.9 Wholesale Securities Services Budget and Performance Report and Plan ....................................................35

Section 4 – Supplemental Information.....................................................................................................................36

4A – Capital Investment Strategy ...........................................................................................................................36

4B – Historical Tables ............................................................................................................................................37

Table 4.1 – Appropriations Detail Table (BPD).....................................................................................................37

Table 4.2 – Appropriations Detail Table (FMS).....................................................................................................37

Table 4.3 -- Operating Levels Table (BPD)............................................................................................................38

Table 4.4 – Operating Levels Table (FMS) ............................................................................................................39
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Section 1 – Purpose

1A – Mission Statement

The mission of the Fiscal Service is to provide guidance to improve financial management across 

the Federal Government and improve the efficiency of Government financial management by

providing central payment services to Federal Program Agencies, operating the Federal

Government’s collections and deposit systems, delivering Government-wide accounting and 

reporting services, managing the collection of delinquent debt owed to the Government,

borrowing the money needed to operate the Federal Government and accounting for the resulting 

debt, and providing reimbursable support services to Federal agencies.

1.1 – Appropriations Detail Table

Dollars in Thousands

* In FY 2011 and FY 2012 FMS and BPD resources were managed separately. FMS direct programs include: 

Collections, Payments, and Government-wide Accounting and Reporting. BPD programs include: GOVerify 

Business Center, Government Agency Investment Services, Retail Securities Services, Summary Debt Accounting, 

and Wholesale Securities Services.

* Total Appropriated Resources in FY 2011, 2012, and 2013 include $10 million, $8 million, and $1 million in

projected Legacy Treasury Direct User Fee collections, respectively. 

* A portion of the Offsetting Collections/Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt 

Collection Improvement Act (DCIA) of 1996.

1B – Mission, Priorities and Context

The FY 2013 Budget request for the Fiscal Service reflects a consolidation of the Bureau of the 

Public Debt (BPD) and the Financial Management Service (FMS), the operational arms of 

Treasury’s Fiscal Service. This consolidation is consistent with Government-wide initiatives to 

improve the delivery of public service, reduce the footprint of the Federal Government, and 

manage administrative and information technology (IT) costs. Beyond the financial and 

operational benefits, this effort enables the Department of the Treasury to better address the 

financial management needs of the Federal Government. The consolidation will position the

Treasury to create more innovative strategies, streamline its core financial management 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Collections 145 22,624 121 21,166 117 20,387 -3.31% -3.68%

GOVerify Business Center 0 0 7 10,000 7 5,000 0.00% -50.00%

Government Agency Investment Services 88 16,045 83 15,419 76 13,672 -8.43% -11.33%

Government-wide Accounting and Reporting 413 68,804 342 64,374 333 62,002 -2.63% -3.68%

Payments 817 141,358 677 132,265 660 128,040 -2.51% -3.19%

Retail Securities Services 740 135,337 676 116,260 605 101,686 -10.50% -12.54%

Summary Debt Accounting 50 9,195 47 8,836 43 8,254 -8.51% -6.59%

Wholesale Securities Services 131 24,058 124 23,120 113 21,490 -8.87% -7.05%

Subtotal New Appropriated Resources 2,384 $417,421 2,077 $391,440 1,954 $360,531 -5.92% -7.90%

Other Resources:

Reimbursables/Offsetting Collections/Fees 460 239,017 561 255,730 619 247,551 10.34% -3.20%

Unobligated Balances from PY 4,000 4,000 2,000 -50.00%

Subtotal Other Resources 460 $243,017 561 $259,730 619 $249,551 10.34% -3.92%

Total Resources Available for Obligation 2,844 $660,438 2,638 $651,170 2,573 $610,082 -2.46% -6.31%

Resources Available for Obligation

FY 2011 Enacted FY 2012 Enacted FY 2013 Request

% Change 

FY 2012 to FY 2013
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processes, and realize administrative efficiencies while retaining existing core Federal financial 

management responsibilities.

Both bureaus report to the Fiscal Assistant Secretary and provide many of the Federal 

Government’s core financial management services and have similarities in their missions that 

support this consolidation. For example, both bureaus perform functions that are part of the 

National Critical Infrastructure, and provide reimbursable services (administrative, IT, and debt 

collection) to Federal agencies.

The two bureaus have contributed to initiatives such as Paperless Treasury and GOVerify, as 

well as growth in shared services. The bureaus have already taken steps to consolidate their IT 

infrastructures and are currently integrating common IT services under the Data Center 

Consolidation/Fiscal IT initiative. Treasury’s success with Fiscal IT highlights opportunities to 

further improve efficiencies and performance in the areas of administrative and additional IT 

services.

This consolidation will create a more effective and resilient organization that is poised for the 

future to become the catalyst for Government-wide financial management improvements. 

Fiscal Service strategic goals provide the foundation for its programs and include:

• Provide timely, accurate, and efficient collection of Federal Government receipts,

• Maximize collection of delinquent debt owed to the Government,

• Effectively finance Government operations, 

• Effectively account for the debt of the Federal Government,

• Produce timely and accurate financial information that contributes to the improved quality of 

financial decision making,

• Provide timely, accurate, and efficient disbursement of Federal Government payments,

• Provide highly competitive shared services to Federal agencies, and

• Be a great place to work.

The Fiscal Service plays a key role in supporting the Department of the Treasury's strategic goal 

of managing the Government’s finances in a fiscally responsible manner. The organization

collects money due to the United States, disburses its payments, and performs central accounting 

functions. Additionally, the Fiscal Service borrows the money needed to operate the Federal

Government and accounts for the resulting debt. In carrying out its mission, Fiscal Service’s

operations are divided into nine budget activities: 

• Collections, 

• Debt Collection,

• GOVerify Business Center (prevent and reduce improper payments),

• Government Agency Investment Services, 

• Government-wide Accounting and Reporting, 

• Payments,

• Retail Securities Services, 

• Summary Debt Accounting, and

• Wholesale Securities Services.
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FY 2011 Accomplishments

The Fiscal Service significantly contributed to Treasury’s priority goal to “increase electronic 

transactions with the public to improve service, prevent fraud, and reduce costs.” Significant 

progress was made by increasing electronic payments, requiring businesses to pay their taxes 

via electronic Federal Tax Deposit (FTD) coupon payments, and eliminating paper payroll 

savings bonds. The Fiscal Service also took steps to end the issuance of all paper savings 

bonds sold over-the-counter at financial institutions and through mailed applications in 

FY 2012. The total Departmental savings from the Paperless Treasury initiative will be over 

$500 million dollars from FY 2011 to FY 2015 of which over $410 million can be attributed to 

the Fiscal Service. 

The Fiscal Service successfully closed two data centers as part of its Data Center 

Consolidation/Fiscal IT initiative, which consolidates collective IT infrastructure and integrates 

common IT services for FMS and BPD. This initiative helped achieve the Secretary's 

objective of increasing the utilization and efficiency of combined IT assets while reducing 

technology costs, which is in alignment with the Office of Management and Budget’s (OMB)

Data Center Consolidation Directive (M-10-19). 

In addition, the Fiscal Service accomplished the following during FY 2011:

• Took extraordinary actions to keep the total debt below the statutory debt limit,

• Conducted 281 auctions resulting in the issuance of $7.8 trillion in marketable securities,

• Oversaw daily cash flow in excess of $89 billion,

• Disbursed over $2.4 trillion in non-defense payments to more than 100 million people, 

• Collected over $3.06 trillion in Government receipts of which over $2.04 trillion was 

collected via Electronic Federal Tax Payment System (EFTPS), and

• Collected $6.17 billion in delinquent debt, which includes $2.31 billion in past due child 

support payments.

FY 2013 Priorities

The Fiscal Service will implement the consolidation while maintaining a high degree of 

operational excellence. The consolidation will allow the Department of the Treasury to look into 

other overlapping functions and services between the two bureaus and to improve efficiency and 

performance. By combining the two bureaus, the Fiscal Service will be positioned to create a 

new standard of excellence and future leadership for the Federal financial community. The 

Fiscal Service will take advantage of economies of scale, eliminate overlapping and duplicative 

functions, and reduce administrative overhead and support services cost. Starting in FY 2013, 

the operational activities of the Fiscal Service will begin operating under a combined budget 

structure, assessing opportunities to reduce staff and position the organization for the change. 
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Initially the following administrative and support functions are identified for consolidation and 

cost reduction:

• Management staff, by transitioning to one Commissioner responsible for Fiscal Service 

operations,

• Finance and budget, by transitioning to one Chief Financial Officer,

• Information and technology, by transitioning to one Chief Information Officer,

• Legal support, by transitioning to one Chief Counsel, and

• Legislative and public affairs, by combining each bureau’s staffs.

An implementation plan for the consolidation of these administrative and support functions will 

be finalized by the end of FY 2012. Implementation is expected to be completed in FY 2014. 

The consolidation will not directly affect the Office of the Fiscal Assistant Secretary, which will 

continue to be funded through the Treasury Departmental Offices Salaries and Expenses 

appropriation.

The Fiscal Service’s Payments Program will continue to support the Treasury's Paperless 

initiative, and, by March 1, 2013, existing beneficiaries receiving checks will be required to 

receive payments electronically. Reshaping the way the Fiscal Service issues payments will 

enable the organization to consolidate its payment centers from four in FY 2011 to two in 

FY 2014. The Payment Management Reorganization initiative will decommission a payment 

center by FY 2014. 

In June 2010, a Presidential Memorandum (Enhancing Payment Accuracy Through a "Do Not 

Pay List") called for a single point through which Federal agencies can obtain needed data to 

prevent ineligible recipients from receiving payments from the Federal Government. To the 

extent permitted by law, the Fiscal Service will establish the GOVerify Business Center to 

support a one-stop shop for verifying eligibility and employing fraud detection tools and data 

analytics to help reduce improper payments. In FY 2013 the Fiscal Service will continue to 

expand GOVerify Data Analytics Services and streamline matching agreements through 

legislative or regulatory changes. 

The Debt Collection Program has requested several legislative proposals in FY 2011 through 

FY 2013 that will enable it to recover additional delinquent debt. The Fiscal Service will 

continue to implement three management and administrative reforms that will increase the 

number of offsets to collect delinquent debt by an estimated $2.9 billion over ten years.

1. Improve Offset Match Process. Treasury will make system changes to examination 

procedures in order to improve the accuracy of matching an outgoing payment against a list of 

debts, which will increase the number of offsets to collect delinquent debt.

2. Work larger, more collectable debts longer with better analytic tools. Treasury will use 

better collection methods, improve documentation, and pursue more collectable debts for 60-120 

days longer before referral to Private Collection Agencies, particularly larger debts that are 

relatively new. 
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3. Expand Administrative Wage Garnishment. Treasury will work with Federal agencies to 

expand the use of this important tool whereby a non-Federal employer is ordered to withhold up 

to 15 percent of a debtor’s disposable income.

To prepare for the additional influx of delinquent debt collections, the Fiscal Service has 

repurposed the Austin Payment Center into a debt collection center and has updated its business 

strategy with an emphasis on increasing collections. As a result, by FY 2015, the Fiscal Service 

expects to collect over $7 billion in delinquent debt annually, which is a 17 percent increase from 

FY 2011. 

In FY 2013, the top priority for the Wholesale Securities Services (WSS) Program is to 

guarantee operational readiness to meet the Government's critical financing needs. To this end, 

plans are underway to explore new methods of connectivity to Treasury auctions while balancing 

risk and managing a changing infrastructure. By employing the latest technology and software 

applications, the Fiscal Service will continue financing the Government at the lowest cost over 

time.

The Fiscal Service’s Collections Program will continue its Collections and Cash Management 

Modernization (CCMM) initiative to streamline, modernize, and improve the processes and 

systems supporting the Treasury’s collections and cash management program. This effort will 

continue to improve financial performance and timeliness; reduce the number of collections and 

cash management systems and processes; and eliminate the duplication of data, products, 

interfaces, and technologies. This comprehensive effort will simplify and standardize systems 

and processes across Government agencies that have accumulated over 30 years. Full 

implementation of this initiative includes new systems deployment and agency conversions to 

these new systems.

The Government-wide Accounting and Reporting (GWA) Program will continue to focus on 

implementing the Central Accounting and Reporting System (CARS) project. CARS will 

replace the legacy central accounting system (STAR) that uses outdated technology that is costly 

and difficult to maintain. CARS will modernize critical functions of the central accounting 

system.

Additionally, the GWA Program will make progress toward the goal of a clean audit opinion on 

the consolidated Financial Report of the United States Government (FR). The Government 

Accountability Office (GAO) cited three material weaknesses related to the FR opinion: (1) 

Department of Defense accounting challenges; (2) intra-Governmental elimination issues; and 

(3) FR compilation challenges. The General Ledger (GL)/General Fund (GF) initiative 

contributes to the resolution of the latter two items. The initiative entails creating a new Federal

reporting entity for certain cash and budgetary authority accounting events and integrating that 

reporting entity into the FR framework. Together, the CARS and GL/GF initiatives will increase 

the amount and authority of information the Fiscal Service holds in the central accounting 

system.
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Through its Summary Debt Accounting (SDA) Program, the Fiscal Service will continue to work 

to improve the clarity, usefulness, and availability of Federal debt information. By the end of 

FY 2013 the organization will modernize its current summary debt accounting environment by 

reengineering and retooling the processes associated with collecting, verifying, and 

disseminating securities and financial information.

The Retail Securities Services (RSS) Program will remain committed to delivering high-quality 

customer service while selling marketable and savings securities directly to retail investors. For 

instance, the organization will consolidate printing and outbound mailing to take advantage of 

economies of scale. The site will implement intelligent bar-coding on outgoing correspondence 

to facilitate subsequent processing. The organization also plans to create a mechanism for 

managing case files in digital form and develop new customer interaction channels. Through 

these changes, the Fiscal Service will respond to retail securities customers quickly and 

thoroughly in a more streamlined manner. In addition, the Fiscal Service will implement a 

savings program based on pilot project results to continue providing simple, safe, and affordable 

ways for Americans to save. 

For the Government Agency Investment Services (GAIS) Program, quality customer service is 

critical in offering specialized investments to Government entities at the Federal, state, and local 

level to finance their operations. By the end of FY 2013, the Fiscal Service will complete a 

multi-year effort designed to strengthen and streamline controls for GAIS while allowing for 

customers to more effectively manage their investments. The Fiscal Service has established a 

goal of receiving high quality customer satisfaction ratings for this program. In FY 2013, the 

organization will also focus on customer survey results to identify areas for additional 

improvement. 

The Fiscal Service strives to create value for the American people, provides responsible and 

effective stewardship over the Government’s finances, and focuses on quality service, results, 

and innovation. The Fiscal Service has taken aggressive action toward system modernization, 

productivity enhancements, and cost containment in order to absorb reductions to its budget and 

reflect a strong commitment to fiscal stewardship of taxpayers’ funding. While the FY 2013 

Budget represents an almost 14 percent reduction from FY 2011 levels, the Fiscal Service 

demonstrates a commitment to providing continued quality service to customers. Through its 

varied programs, Fiscal Service touches almost every American and every Federal agency.

It will be a tremendous challenge to accomplish all of this following the announcement of the 

Fiscal Service consolidation and during the uncertainty that will naturally flow from planning 

and initial implementation of such a significant organizational change. Nevertheless, the Fiscal 

Service is committed to doing what it has planned and maintaining the tradition of 

accomplishment that has been the consistent hallmark of the Financial Management Service and 

the Bureau of the Public Debt.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

*FY 2012 Enacted combines FMS and BPD appropriated resources. See Section 4B for historical tables. 

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$3,539,000 / +0 FTE

Maintaining Current Levels +$3,539,000 / +0 FTE 

Funds are requested for inflation adjustments (1.7 percent) in non-labor expenses such as GSA 

rent adjustments, postage, supplies and equipment and health benefits and the increase in Federal 

Employees Retirement System participation. Funds are also requested for the proposed 2013 pay 

raise (0.5 percent).

Non-Recurring Costs .................................................................................-$5,582,000 / +0 FTE

GOVerify Business Center Non-Recurring Cost -$5,000,000 / +0 FTE 

The request reflects a non-recurring cost savings of $5,000,000 for the GOVerify Business 

Center.

Government Agency Investment Services Non-Recurring Cost -$582,000 / +0 FTE 

As part of modernizing its GAIS Program, the Fiscal Service made the decision to consolidate its 

GAIS system components into a single, integrated control environment by FY 2012. As a result, 

the bureau expects to realize savings in FY 2013 due to decreased technical development efforts.

The Fiscal Service FTE Amount

FY 2012 Enacted 2,077 $391,440 

Changes to Base:

Maintaining Current Levels (MCLs): - $3,539 

Maintaining Current Levels - $3,539 

Non-Recurring Costs: - ($5,582)

GOVerify Business Center Non-Recurring Cost - ($5,000)

Government Agency Investment Services Non-Recurring Cost - ($582)

Efficiency Savings: (83) ($20,110)

Program Efficiencies (83) ($8,321)

Paperless Treasury - ($875)

Support Services Efficiencies - ($3,000)

Data Center Consolidation/Fiscal IT - ($7,914)

Subtotal FY 2013 Changes to Base (83) ($22,153)

Total FY 2013 Base 1,994 $369,287 

Program Changes:

Program Decreases: (40) ($10,296)

Eliminate Paying Agent Fees - ($4,985)

Eliminate New Issues of Paper Payroll Savings Bonds (6) ($673)

Eliminate Paper Savings Bonds Sold OTC at Financial Institutions (4) ($647)

Administrative Services Reduction (30) ($3,991)

Program Increases: - $1,540 

Payment Management Reorganization - $1,540 

Total FY 2013 Request 1,954 $360,531 

Legacy Treasury Direct User Fees - ($1,000)

Total FY 2013 Request (Net) 1,954 $359,531 
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Efficiency Savings ...................................................................................-$20,110,000 / -83 FTE

Program Efficiencies -$8,321,000 / -83 FTE 

Savings realized from reductions in funded positions across all the Fiscal Service programs.

Paperless Treasury -$875,000 / +0 FTE 

In FY 2013, the Paperless Treasury initiative will save the Government money through 

consumable savings. In FY 2014, the Fiscal Service anticipates decommissioning another 

payment center, which will provide additional savings and rationalize capacity.

Support Services Efficiencies -$3,000,000 / +0 FTE 

Savings realized from reductions in administrative and IT support services.

Data Center Consolidation/Fiscal IT -$7,914,000 / +0 FTE 

The Fiscal Service will consolidate five data centers to two which will begin to produce savings 

due to reductions in energy consumption, equipment, maintenance, software, licensing, lease and 

utilities costs, and professional services contracting costs. 

Program Decreases .................................................................................-$10,296,000 / -40 FTE

Eliminate Paying Agent Fees -$4,985,000 / +0 FTE 

Six months of savings from eliminating fees paid to agents who redeem paper savings bonds.

Eliminate New Issues of Paper Payroll Savings Bonds -$673,000 / -6 FTE 

Savings of paying agent fees from a reduction of paper payroll savings bond redemptions and 

FTE savings from a decline in customer service transactions since new issues of paper payroll 

bonds were eliminated.

Eliminate Paper Savings Bonds Sold OTC at Financial Institutions -$647,000 / -4 FTE 

Savings of paying agent fees from a reduction of paper over-the-counter savings bond 

redemptions and FTE savings from a decline in customer service transactions since new issues of 

over-the-counter paper savings bonds were eliminated.

Administrative Services Reduction -$3,991,000 / -30 FTE 

The Fiscal Service will continue efforts started in prior fiscal years to reduce administrative 

services and administrative support positions.

Program Increases ....................................................................................+$1,540,000 / +0 FTE

Payment Management Reorganization +$1,540,000 / +0 FTE 

The Fiscal Service’s regional financial centers were historically placed throughout the United 

States to be in proximity to its customer base, banking facilities, population distribution, and 

check distribution capability of the U.S. Postal Service. The growth in electronic payments 

combined with the Paperless Treasury initiative has diminished the need for these criteria. As a 

result, the Fiscal Service will not need three payment centers and will begin decommissioning a 

payment center in FY 2013, with complete closure by FY 2014. 
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The Fiscal Service’s base funding does not include resources to cover the total cost of closing a 

center. Therefore, the proposed funding redirect will enable the Fiscal Service to cover 

employee separation expenses and residual costs associated with a center closure. The Fiscal 

Service will initiate outplacement and career services for potentially over 100 affected 

employees as part of this effort. Additionally, the Fiscal Service will transfer existing equipment 

and inventory to the remaining centers. This will require the reconfiguration of existing space at 

its remaining centers enabling them to handle the additional equipment and increased inventory 

needs. To assure a smooth transition and minimize risk, the Fiscal Service will take a staged 

approach and will require FY 2013 to accomplish this reorganization. Once completed, the 

Fiscal Service anticipates that the closure in FY 2014 will result in significant savings to the 

taxpayer.

Offsetting Collections .................................................................................-$1,000,000 / +0 FTE

Legacy Treasury Direct User Fees -$1,000,000 / +0 FTE 

Legacy Treasury Direct account holders with balances over $100,000 (par value) are charged an 

annual account maintenance fee of $100. The Fiscal Service will end the sale of securities in 

Legacy Treasury Direct no later than November 2012. Since the number of securities in the 

system will decline as they mature, the Fiscal Service, projects only $1,000,000 in user fee 

collections for FY 2013. 
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2.2 – Operating Levels Table

Dollars in Thousands

* In FY 2011 and FY 2012 FMS and BPD resources were managed separately. FMS direct programs include: 

Collections, Payments, and Government-wide Accounting and Reporting. BPD Programs include: GOVerify 

Business Center, Government Agency Investment Services, Retail Securities Services, Summary Debt Accounting, 

and Wholesale Securities Services. 

The Fiscal Service FY 2011 

Actual

FY 2012 

President's 

Budget

FY 2012

Enacted

Proposed 

Reprogrammings

FY 2012 

Proposed 

Operating 

Level

FY 2013 

Request

FTE 2,633 2,187 2,077 - 2,077 1,954

Object Classification:

11.1 Full-Time Permanent Positions........................ $176,965 $171,320 $170,786 $170,786 $164,746

11.3 Other than Full-Time Permanent Positions....... 2,376 2,073 $2,073 2,073 $1,927

11.5 Other Personnel Compensation....................... 2,348 7,232 $7,232 7,232 $6,893

11.8 Special Personal Services Payments............... 0 36,559 $36,559 36,559 $29,999

11.9 Personnel Compensation (Total).................. $181,689 $217,184 $216,650 $0 $216,650 $203,565

12.0 Personnel Benefits........................................... 49,627 46,239 46,119 46,119 44,419

13.0 Benefits to Former Personnel........................... 730 210 210 210 647

21.0 Travel............................................................... 1,869 2,643 2,643 2,643 2,631

22.0 Transportation of Things.................................. 293 369 369 369 339

23.1 Rental Payments to GSA................................. 22,324 27,612 27,612 27,612 27,775

23.2 Rent Payments to Others................................. 822 679 679 679 679

23.3 Communications, Utilities, & Misc.................... 16,088 14,894 14,845 14,845 12,289

24.0 Printing and Reproduction................................ 938 1,440 1,440 1,440 884

25.1 Advisory & Assistance Services....................... 6,452 8,049 8,049 8,049 7,656

25.2 Other Services................................................. 33,394 21,953 21,953 21,953 17,740

25.3 Purchase of Goods/Serv. from Govt. Accts...... 58,630 28,497 28,497 28,497 20,481

25.4 Operation & Maintenance of Facilities.............. 1,705 1,301 1,301 1,301 1,124

25.6 Medical Care.................................................... 2 13 13 13 10

25.7 Operation & Maintenance of Equipment........... 10,147 8,350 8,350 8,350 8,298

25.8 Subsistence & Support of Persons................... 8 0 0 0 0

26.0 Supplies and Materials..................................... 4,240 4,551 4,524 4,524 2,993

31.0 Equipment........................................................ 6,468 7,758 7,488 7,488 8,071

32.0 Lands and Structures....................................... 1,214 648 648 648 881

42.0 Insurance Claims & Indemn............................. 12 50 50 50 50

Total Budget Authority..........................................$396,652 $392,440 $391,440 $0 $391,440 $360,531

Budget Activities:

Collections......................................................... 22,143 21,265 21,166 21,166 20,387

GOVerify Business Center.................................... 0 10,000 10,000 10,000 5,000

Government Agency Investment Services............... 16,257 15,419 15,419 15,419 13,672

Government-wide Accounting and Reporting............ 67,342 64,672 64,374 64,374 62,002

Payments......................................................... 138,354 132,868 132,265 132,265 128,040

Retail Securities Services.................................... 118,389 116,260 116,260 116,260 101,686

Summary Debt Accounting.................................... 13,167 8,836 8,836 8,836 8,254

Wholesale Securities Services.............................. 21,000 23,120 23,120 23,120 21,490

Total Budget Authority..........................................$396,652 $392,440 $391,440 $0 $391,440 $360,531
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2B – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

THE FISCAL SERVICE

Federal Funds

For necessary expenses of operations of the Fiscal Service, not including 

expenses of Departmental Offices, $360,531,000; of which not to exceed 

$4,210,000, to remain available until September 30, 2015, is for 

information systems modernization initiatives; and of which $5,000 shall 

be available for official reception and representation expenses: Provided, 

That the sum appropriated herein from the general fund for fiscal year 

2013 shall be reduced by not more than $1,000,000 as definitive security 

issue fees and Legacy Treasury Direct Investor Account Maintenance fees 

are collected, so as to result in a final fiscal year 2013 appropriation from 

the general fund estimated at $359,531,000.

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.

[For necessary expenses of the Financial Management Service, 

$217,805,000, of which not to exceed $4,210,000 shall remain available 

until September 30, 2014, for information systems modernization 

initiatives; and of which not to exceed $2,500 shall be available for official 

reception and representation expenses.]

[For necessary expenses connected with any public-debt issues of the 

United States, $173,635,000, of which not to exceed $2,500 shall be 

available for official reception and representation expenses, and of which 

not to exceed $10,000,000 shall remain available until September 30, 

2014, to reduce improper payments: Provided, That the sum appropriated 

herein from the general fund for fiscal year 2012 shall be reduced by not 

more than $8,000,000 as definitive security issue fees and Legacy 

Treasury Direct Investor Account Maintenance fees are collected, so as to 

result in a final fiscal year 2012 appropriation from the general fund 

estimated at $165,635,000. In addition, $165,000 to be derived from the 

Oil Spill Liability Trust Fund to reimburse the Bureau for 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, 2012.)

This language allows 

consolidation of the 

bureaus without changes 

in authorizing statutes.
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2B – Permanent, Indefinite Appropriations

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. The FRBs support the fiscal 

operations and provide banking and financial services on behalf of the Treasury of the United 

States. Since the FRBs support many Fiscal Service program activities, the performance 

measures listed in the Salaries and Expense section of this budget apply to the work done by the 

FRBs. The Fiscal Service estimates that the cost of FRB services for FY 2013 will be 

approximately $331 million.

Reimbursements to the Federal Reserve Banks

Public Law 101-509, 104 Stat. 1389, 1394 (1990), established a permanent indefinite 

appropriation to pay such sums as necessary to reimburse the FRBs for acting as fiscal agents. A 

permanent indefinite account was established in FY 1992. Claims for reimbursements are 

closely monitored for compliance with the Instructions for Filing Reimbursement Claims for 

Fiscal Agency Services Provided to the Fiscal Service (current edition). Funding for FY 2013 is 

estimated at $106,800,000.

Financial Agent Services Permanent, Indefinite Appropriation

Congress has given the Secretary of the Treasury broad discretion to deposit money in financial 

institutions and to obtain banking services by designating financial institutions to act/serve as 

Financial Agents (FA) of the United States. The services support many Fiscal Service programs 

such as Electronic Federal Tax Payment System (EFTPS), the Lockbox Networks, E-Commerce 

systems, and the deposit reporting and cash concentration system called CA$HLINK II. These 

and other programs are vital to the Fiscal Service’s strategic goals, the National Financial 

Critical Infrastructure, and the expanding E-Government. The services provided by the FAs are 

authorized under numerous statutes including, but not limited to, 12 U.S.C. 90 and 265. In 

FY 2004, Treasury received a Permanent Indefinite appropriation to pay for these services. The 

Fiscal Service estimates that the cost of FA services for FY 2013 will be approximately $631 

million, which includes $17 million for Government Sponsored Enterprise - Mortgage Backed 

Securities administrative costs. 

Government Losses in Shipment

Public Law 103-329 established a permanent indefinite appropriation to pay such sums as 

necessary to make payments for the replacement of valuables, or the value thereof, lost, 

destroyed, or damaged in the course of United States Government shipments. The Government 

Losses in Shipment Act was approved 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, which were fraudulently negotiated even though the paying agent 

followed identification guidelines established by the Treasury). All authority of the Treasury 

under the Act has been delegated to the Commissioner of the Fiscal Service. In FY 2013, the 

funding estimated to support payments for the replacement of valuables is $969,000.
FS - 15

2.3 – Permanent, Indefinite Appropriations Table

(Dollars in Thousands)

Permanent, Indefinite Appropriation 2011 

Enacted

2012 

Enacted 2013 Request

Federal Reserve Bank $321,000 $329,000 $331,000

Reimbursements to the Federal Reserve Banks $124,400 $119,000 $106,800

Financial Agent Services* $625,000 $623,000 $631,000

Government Losses in Shipment $1,155 $800 $969

* FY 2011, FY 2012, and FY 2013 include costs for the Government Sponsored Enterprise – Mortgage Backed 

Securities administrative costs of $21 M, $17 M, and $17 M respectively. 

Note: Approximately $73M is reimbursed from other Government agencies and deposited into the General Fund 

each year.

2C – Legislative Proposals

1. Allow Offset of Federal Income Tax Refunds to Collect Delinquent State Income 

Taxes for Debtors Who Currently Reside in Other States. No Federal budgetary 

impact; $1.2 billion over 10 years for state taxes

Under current law, Federal tax refunds may be offset to collect delinquent state income 

tax obligations only if the delinquent taxpayer resides in the state collecting the tax. This 

proposal will allow the Treasury to offset Federal income tax refunds to collect 

delinquent state tax obligations regardless of where the debtor resides.

2. Increase Levy Authority for Payments to Medicare Providers with Delinquent Tax 

Debt. Estimated revenues: $717 million over 10 years

The Budget proposes a change to the Department of the Treasury’s debt collection 

procedures that will increase the amount of delinquent taxes collected from Medicare 

providers. Through the Federal Payment Levy Program, the Treasury deducts (levies) a 

portion of a Government payment to an individual or business in order to collect unpaid 

taxes. Pursuant to the Medicare Improvements for Patients and Providers Act of 2008, 

Treasury is authorized to continuously levy up to 15 percent of a payment to a Medicare 

provider in order to collect delinquent tax debt. The Budget proposal will allow Treasury 

to levy up to 100 percent of a payment to a Medicare provider to collect unpaid taxes.

3. Clarify Treasury’s Authority to Recover Unclaimed Assets of the United States and 

Pay Costs from Amounts Recovered. Estimated recoveries (net): $20 million over 10 

years

The Budget proposes to clarify Treasury’s authority to recover from states and other 

entities unclaimed assets in the name of the United States or in the name of departments, 

agencies, and other subdivisions of the Federal Government. Many agencies are not 

recovering these assets due to lack of expertise and funding. Under current authority, 

Treasury collects delinquent debts owed to the United States and retains a portion of 

collections, which is the sole source of funding for its debt collection operations. While 
FS - 16

unclaimed Federal assets are generally not considered to be delinquent debts, Treasury’s 

debt collection operations personnel have the skills and training necessary to costefficiently recover these assets. This legislation would authorize Treasury to use its 

resources to recover assets of the United States, and to pay its costs from amounts 

recovered, rather than from direct appropriations.

Sec. 119. Section 3711 of title 31, United States Code, is amended by adding a new 

subsection (j) to read as follows: "(j)(1) The Secretary of the Treasury (referred to in this 

subsection as the "Secretary") may locate and recover assets of the United States 

Government on behalf of any executive, judicial, or legislative agency in accordance with 

such procedures as the Secretary considers appropriate. (2) Notwithstanding any other 

law concerning the depositing and collection of Federal payments, including section 

3302(b) of this title, the Secretary may retain a portion of the amounts recovered 

pursuant to this subsection to cover the Secretary's costs associated with locating and 

recovering assets of the United States. The amounts retained shall be deposited into an 

account established in the Treasury to be known as the "Unclaimed Assets Recovery 

Account" (referred to in this paragraph as the "Account"). Amounts deposited in the 

Account shall be available until expended to cover costs associated with implementation 

and operation of the Secretary's asset recovery program established under this 

subsection. (3) To carry out the purposes of this subsection, the Secretary may: (A) 

Transfer to the Account from funds appropriated to the Department of Treasury such 

amounts as may be necessary to meet liabilities and obligations incurred prior to the 

receipt of recovered assets; and (B) Reimburse any appropriation from which funds were 

transferred under this paragraph from the amounts retained from recovered assets. Any 

reimbursement under this paragraph shall occur during the period of availability of the 

funds originally transferred from an appropriation and shall be available for the same 

time period and purposes as originally appropriated."
FS - 17

Section 3 – Budget and Performance Plan

3A – Collections

($20,387,000 from direct appropriations, and $176,000 from reimbursable programs):

The Collections Program supports its strategic goal to provide timely, accurate, and efficient 

collection of Federal Government receipts. The Fiscal Service manages the collection of Federal

revenues such as individual and corporate income tax deposits, customs duties, loan repayments, 

fines, and proceeds from leases. In addition, the Fiscal Service establishes and implements 

collection policies, regulations, standards, and procedures for the Federal Government.

In addition to implementing the CCMM initiative, which will enable the Fiscal Service and 

Government agencies to more effectively manage and collect Government receipts, the Fiscal 

Service continues to promote the use of electronic systems in the collections process and assist 

agencies in converting collections from paper to electronic media with programs such as:

• Electronic Federal Tax Payment System (EFTPS): The Fiscal Service has been working to 

communicate the benefits of EFTPS – accuracy, security, simplicity, and flexibility – to 

financial institutions, small businesses, and tax practitioners. Internal Revenue Service (IRS) 

research has shown that businesses using EFTPS are 31 times less likely to make an error. 

The goal is to continue to require businesses and individuals to pay their Federal taxes 

electronically through EFTPS. EFTPS currently collects approximately 84 percent of United 

States tax dollars.

• Pay.gov: Pay.gov is a system allowing individuals and businesses to make nontax payments 

to Federal agencies over the internet. New developments will focus on interfaces with new 

systems within the new Collections Business Line Enterprise Architecture, improved 

interfaces with Federal agencies, and enhanced functionality. Pay.gov, currently serves 

157 Federal agencies representing 733 cash flows. In FY 2011, Pay.Gov processed nearly

76.4 million transactions and collected approximately $86.8 billion. 

• Check Conversion and Truncation: It is Fiscal Service's goal that all paper checks remitted 

to the Federal Government will be converted or truncated and processed electronically. 

Paper Check Conversion Over-The-Counter (PCC OTC), OTCnet, and Electronic Check 

Processing (ECP) are programs that provide a complete electronic record of all check images 

and related financial data accessible via a web-based archive and eliminate the need to 

photocopy checks, safeguard checks, or process paper. In FY 2011, over 64.4 million items 

with a value of over $65 billion were processed through these check conversion/truncation 

applications. 

Description of Performance: 

The measure, Percentage Collected Electronically of Total Dollar Amount of Federal 

Government Receipts refers to the dollar value of collections received electronically. In FY 

2011, the Fiscal Service collected 96 percent of collections electronically, exceeding its target of 

82 percent. The Fiscal Service attributes this increase to the new regulation that requires all 

businesses currently required to use a FTD coupon to pay electronically. By continuing to 

implement the Paperless Treasury initiative and the CCMM initiative the Fiscal Service expects 
FS - 18

to continue receiving collections through electronic methods and anticipates maintaining its 96 

percent collection rate in FY 2013. 

The Fiscal Service achieved its target of $1.70 Unit Cost to Process a Federal Revenue 

Collection Transaction by achieving approximately $1.45 per unit in FY 2011. The Fiscal 

Service was able to make its collections process more cost-efficient by converting paper cash 

flows into more efficient electronic processing. The Fiscal Service will continue to promote and 

convert collections from paper to the more efficient electronic media but anticipates the unit cost 

to increase to $1.70 in FY 2012 due to implementation costs associated with the CCMM 

initiative. The CCMM initiative will significantly improve the efficiency of the Fiscal Service to 

collect Government receipts; therefore the unit cost is expected to decrease once the CCMM 

initiative has been fully implemented. However, until full implementation is realized, the Fiscal 

Service must continue to maintain legacy systems and processes, and incur the costs to maintain 

those systems. The Fiscal Service will discontinue reporting this measure externally in FY 2013 

due to an effort to streamline performance reporting, but will continue to track the measure 

internally. The goal owner for this budget activity is the Assistant Commissioner, Federal 

Finance.

3.1.1 – Collections Budget and Performance Report and Plan

Dollars in Thousands 

Collections Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $16,931 $17,434 $19,804 $21,521 $21,911 $22,624 $21,166 $20,387

 Reimbursable Resources $0 $0 $0 $0 $113 $1,419 $198 $176

Total Resources $16,931 $17,434 $19,804 $21,521 $22,024 $24,043 $21,364 $20,563

Budget Activity Total $16,931 $17,434 $19,804 $21,521 $22,024 $24,043 $21,364 $20,563

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Percentage Collected 

Electronically of Total Dollar 

Amount of Federal 

Government Receipts 

79.0 79.0 80.0 84.0 85.0 96.0 96.0 96.0

Unit Cost to Process a 

Federal Revenue Collection 

Transaction

1.1 1.19 1.195 1.57 1.67 1.45 1.7 DISC

Key: DISC - Discontinued and B - Baseline
FS - 19

3B – Debt Collection

($0 from direct appropriations, and $118,616,000 from reimbursable programs):

The Fiscal Service’s debt collection program supports its strategic goal to maximize collection of 

delinquent debt owed to the Government. The Fiscal Service collects delinquent Government

and child support debt by providing centralized debt collection, oversight, and operational 

services to Federal Program Agencies (FPAs) and states pursuant to the Debt Collection 

Improvement Act (DCIA) of 1996 and related legislation. The Fiscal Service uses two debt 

collection programs: Treasury Offset Program (TOP) and Cross Servicing.

In FY 2012, the Fiscal Service expects to increase debt collections by (1) repurposing the Austin 

Payment Center as a debt collection center, (2) undertaking three management and 

administrative reforms, which include improving the offset match process, improving analytic 

tools, and expanding Administrative Wage Garnishment, (3) enhancing the FedDebt system, and 

(4) expanding offset services by improving matching debtors to payments and adding new 

collections like unemployment compensation.

Description of Performance: In FY 2011 the Fiscal Service exceeded its target of $43 in the 

Amount of Delinquent Debt Collected per Dollar Spent with approximately $51.65, exceeding its 

target as a result of an increase in agency referrals, expansions of the State reciprocal and 

Unemployment Insurance Compensation Programs, a salary offset pilot with the Department of 

Education, and system process enhancements. 

The Fiscal Service expects to achieve its target in FY 2012 because of increased collections as a 

result of the conversion of the Austin Payment Center to a Debt Collection Center. The Fiscal 

Service continues to roll out Debt Check, an online program used to help agencies bar delinquent 

debtors from obtaining new loans or loan guarantees. The Fiscal Service began adding alias 

names to TOP database to improve debt matching in TOP and increase offset collections. 

Development of the TOP Next Generation (NG) system began in FY 2011. When completed, 

the TOP NG system will support additional debt, handle increasingly larger volumes of debt 

collection, and emerging and expanding payment throughput into the future, and meet all 

essential stakeholder needs.

Additionally, the Fiscal Service anticipates that several new legislative proposals that will 

increase debt collection will be approved in the FY 2012 and be fully realized in FY 2013. The 

Fiscal Service will discontinue reporting this measure externally in FY 2013 due to an effort to 

streamline performance reporting, but will continue to track the measure internally. 

In FY 2011, the Fiscal Service collected $6.173 billion in Delinquent Debt through All Available 

Tools, achieving its target of $4.84 billion. The amount collected includes $2 million from 

Economic Recovery Payments, $2.31 billion in past due child support, $2.74 billion in Federal

nontax debt, and over $1 billion in Federal tax levies and state tax debt offsets. The target was 

exceeded due to several improvements which include an increase in agency referrals, expansion 

of the State Reciprocal and Unemployment Insurance Compensation Programs, the salary offset 

pilot with the Department of Education, and several debt collection systems and process 

enhancements. The Fiscal Service goal for FY 2012 and FY 2013 is to collect $6.67 billion and 

$7.2 billion respectively in delinquent debts through the use of expanding the administrative 
FS - 20

wage garnishment collection tool and legislative changes such as the proposal to allow the 

Treasury to offset Federal income tax refunds to collect delinquent state tax obligations 

regardless of where the debtor resides. The Fiscal Service is confident it will be able to meet this 

goal.

The DCIA of 1996 requires agencies to refer any delinquent debt over 180 days old. The 

measure, Percentage of Delinquent Debt Referred to Fiscal Service for Collection to Amount 

Eligible for Referral tracks the percentage of dollar volume of debt referred to the total dollar 

volume that is eligible for referral. In FY 2011 the Fiscal Service exceeded its target of 97 

percent with 100 percent of eligible delinquent debt referred. The target was exceeded as a result 

of high performing agency outreach and education efforts and improvements made to debt 

collection systems. The Fiscal Service expects to continue to achieve its target as a result of 

these efforts. The Fiscal Service will discontinue reporting this measure externally in FY 2013 

due to an effort to streamline performance reporting, but will continue to track the measure 

internally. The goal owner for this budget activity is the Assistant Commissioner, Debt 

Management Services.

3.1.2 – Debt Collection Budget and Performance Report and Plan

Dollars in Thousands 

Debt Collection Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $10,162 $5,029 $0 $0 $0 $0 $0 $0

 Reimbursable Resources $40,185 $67,611 $77,330 $86,247 $93,397 $80,036 $97,052 $118,616

Total Resources $50,347 $72,640 $77,330 $86,247 $93,397 $80,036 $97,052 $118,616 

Budget Activity Total $50,347 $72,640 $77,330 $86,247 $93,397 $80,036 $97,052 $118,616 

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Amount of Delinquent Debt 

Collected Per $1 Spent

39.97 53.55 54.76 53.76 54.54 51.65 47.0 DISC

Amount of Delinquent Debt 

Collected Through All 

Available Tools ($ billions) 

3.34 3.76 4.41 5.03 5.45 6.17 6.67 7.20

Percentage of Delinquent 

Debt Referred for Collection 

Compared to Amount Eligible 

for Referral

95.0 100.0 99.0 100.0 100.0 100.0 98.0 DISC

Key: DISC - Discontinued and B - Baseline
FS - 21

3C – GOVerify Business Center

($5,000,000 from direct appropriations): 

Following the June 2010 Presidential Memorandum on Enhancement of Payment Accuracy

Through a “Do Not Pay List,”, the GOVerify Business Center was established for use by all 

departments and agencies in order to achieve the goal of preventing ineligible recipients from 

receiving payments or awards from the Federal Government. The GOVerify Business Center is 

a significant step toward meeting the President’s directive to establish a single-entry point that 

departments and agencies can access to determine eligibility information prior to making an 

award or payment, while also providing other services. Specifically, the GOVerify Business 

Center is comprised of two components geared towards reducing improper payments:

• The GOVerify Portal is a web-based, single-entry access portal that assists efforts to 

prevent improper payments. The GOVerify Portal enables departments and agencies to 

access data sources identified in the Memorandum in a centralized location, including the 

Death Master File, the Excluded Parties List System, and the List of Excluded Individuals 

and Entities. Access to Treasury’s Debt Check database will be available in March 2012. 

Treasury will continue to research and add federal and commercially available data sources 

to the Portal. This data will assist agencies in their efforts to reduce improper payments 

throughout the pre-award, pre-payment, and post-payment review processes.

• The GOVerify Data Analytics Services utilize data sources such as the Office of Foreign 

Assets Control List, zip code data, prison information, and several privately available data 

sources that are in addition to those data sources included in the GOVerify Portal. These 

data resources are augmented by advanced data analytic activities such as identifying trends, 

risks, and patterns of behavior that may warrant a more thorough analysis and investigation 

on the part of the Federal agency.

The Fiscal Service will work on developing a performance measure for the GOVerify Business 

Center once the program is past the initial stages of implementation. The goal owner for this 

budget activity is the Program Manager, GOVerify. 

3.1.3 – GOVerify Business Center Budget and Performance Report and Plan

Dollars in Thousands 

GOVerify Business Center Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $0 $0 $0 $0 $0 $0 $10,000 $5,000

 Reimbursable Resources $0 $0 $0 $0 $0 $0 $107 $0

Total Resources $0 $0 $0 $0 $0 $0 $10,107 $5,000

Budget Activity Total $0 $0 $0 $0 $0 $0 $10,107 $5,000
FS - 22

3D – Government Agency Investment Services (GAIS)

($13,672,000 from direct appropriations, and $2,076,000 from reimbursable programs): 

The GAIS Program works to effectively finance Government operations by offering specialized 

investments for Government entities at the Federal, state, and local levels, as well as borrowings 

by Federal agencies. This program consists of three distinct components: Federal Investments, 

Special Purpose Securities, and Federal Borrowings.

The Federal Investments component includes issuing, servicing and redeeming Government 

Account Series securities for Federal agencies that have specific statutory authority to invest, 

such as the Social Security and Medicare Funds, as well as the Unemployment and Highway 

Trust Funds. Special Purpose Securities are issued to offer a flexible investment alternative for 

state and local governments to refinance their outstanding tax-exempt debt. Federal Borrowings 

account for and report on loans made by other Federal agencies such as education, housing, 

farming, and small business support. The goal owner for this budget activity is the Assistant 

Commissioner, Office of Public Debt Accounting.

Other Resources:

Reimbursements totaling $2,076,000 are allocated to this program for providing administrative 

support to the Fiscal Service’s franchise operation. 

Description of Performance: 

In FY 2011, the cost per Federal funds investment transaction was $84.67, which was below the 

target of $86.18. Efficiencies gained through the Fiscal Service's long term goal to consolidate 

common GAIS control processes helped enable the target to be met. Beginning in FY 2012, the 

costs and volumes used in the calculation of the cost per item will change from a single 

component, Federal funds investments, to a GAIS summary level projection in order to 

incorporate all GAIS components including Federal funds investments, Federal borrowings, and 

special purpose securities. The new GAIS measure will be based upon a five-year rolling 

average volume to limit the impact of external, uncontrollable variables on the measure.

The new consolidated GAIS cost per transaction target in FY 2012 is $34.56 and $33.32 in 

FY 2013. The target cost per item decrease from FY 2012 to FY 2013 is attributable to 

increased costs during FY 2012 associated with a system enhancement project. The Fiscal

Service expects to meet these new targets by realizing the benefits of streamlining and 

standardizing common business processes for all components of the GAIS Program.

The Fiscal Service is working to achieve its long-term goal of consolidating the systems that 

house GAIS data into a single integrated control environment, which will reduce operational 

risks and allow the program to consolidate and standardize internal controls over GAIS 

processes. The control environment originally consisted of 18 processes in 2006 and has been 

consolidated into eight standardized processes as of FY 2011. In FY 2012 the program plans to 

consolidate the remaining two processes, leaving six standardized processes and concluding the 

project. Accordingly, the number of GAIS control processes consolidated measure will be 

discontinued in FY 2013. 
FS - 23

In preparation for the end of the consolidation project, the GAIS Program established a goal of 

providing high quality customer satisfaction, transaction processing, and accurate and timely 

payments to investors. To measure performance in relation to this goal, the organization 

completed an initial customer survey focusing on program and system satisfaction, identifying 

opportunities for improvement. A baseline was determined, and the program set a goal to 

incrementally increase the percentage of respondents giving GAIS the highest level of customer 

satisfaction. During FY 2011, survey results showed 60 percent of respondents rating their 

overall satisfaction with GAIS as "Excellent." This percentage exceeded the goal of 56 percent 

for the year. Using the survey responses, the Fiscal Service plans to target areas for 

improvement, thereby progressively increasing the percentage of customers rating GAIS as 

"Excellent" in FY 2012. Customer responses to the program and system related questions will 

determine cost beneficial enhancements made to the system as well as procedural updates for the 

programs.

3.1.4 – Government Agency Investment Services Budget and Performance Report and Plan

Dollars in Thousands

Government Agency Investment Services Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $13,555 $14,594 $15,745 $17,723 $18,013 $16,045 $15,419 $13,672

 Reimbursable Resources $1,245 $3,454 $4,473 $1,698 $2,008 $1,937 $2,121 $2,076

Total Resources $14,800 $18,048 $20,218 $19,421 $20,021 $17,982 $17,540 $15,748

Budget Activity Total $14,800 $18,048 $20,218 $19,421 $20,021 $17,982 $17,540 $15,748

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Cost Per Government Agency 

Investment Services 

Transaction ($) 

62.64 68.53 64.98 41.71 82.08 84.67 34.56 33.32

Number of Government 

Agency Investment Services 

control processes 

consolidated

N/A 3.0 2.0 0.0 5.0 0.0 2.0 DISC

Percent of Respondents 

Selecting the Highest Rating 

of Customer Satisfaction with 

Government Agency 

Investment Services (%) 

N/A N/A N/A N/A 55.0 60.0 57.0 58.0

Key: DISC - Discontinued and B - Baseline
FS - 24

3E – Government-wide Accounting and Reporting (GWA)

($62,002,000 from direct appropriations, and $3,288,000 from reimbursable programs):

The GWA Program supports the Fiscal Service’s strategic goal to produce timely and accurate 

financial information that contributes to the improved quality of financial decision making by 

operating and overseeing the Government’s central accounting and reporting system. The GWA 

Program also works with FPAs to adopt uniform accounting and reporting standards and 

systems. It provides support, guidance, and training to assist FPAs in improving their 

Government-wide accounting and reporting responsibilities. The Fiscal Service collects, 

analyzes, and publishes Government-wide financial information, which is used by the Federal

Government to establish fiscal and debt management policies and by the public and private 

sectors to monitor the Government’s financial status. Publications include the Daily Treasury 

Statement, the Monthly Treasury Statement, the Treasury Bulletin, the Combined Statement of 

the United States Government, and the FR. 

The GWA cash reporting function supports the National Financial Critical Infrastructure. In this 

capacity GWA continues to obtain an unqualified opinion on the Audit of Non-entity Schedules 

of Government-wide Cash. The Fiscal Service is taking significant steps to address the material 

weaknesses found in the compilation process of the FR including: 

1. Requiring comprehensive accounting data from agencies on a quarterly basis that will 

allow Fiscal Service to better analyze the data for consistency and completeness.

2. Providing agencies with authoritative data to reconcile inter-agency transfers and other 

transactions that agencies report to the central accounting system.

3. Using the Chief Financial Officers (CFO) Council, Central Reporting Team as a forum to 

discuss accounting and reporting issues that affect the FR.

4. Working with the CFO Council and OMB to develop more consistent business rules for 

intra-governmental transactions.

5. Reconciling the agency data to central accounting data, which Fiscal Service uses to 

prepare the Reconciliations of Net Cost and Unified Budget Deficit Statement and the 

Statement of Changes in Cash Balance from Unified Budget and Other Activities.

6. Strengthening internal controls over the process for preparing the FR.

The goal of these actions is to remove the compilation process as a barrier to a clean audit 

opinion for the FR.

Description of Performance: 

In FY 2011, the Fiscal Service continued to achieve its target of 100 percent for its measures 

Percentage of Government-Wide Accounting Reports Issued Accurately and Percentage of 

Government-Wide Accounting Reports Issued Timely. The Fiscal Service continued to achieve 

its target by maintaining its established process of validating and reconciling data with reporting 

sources such as the Regional Finance Centers, FPAs, and various electronic deposit and payment 

applications. The Fiscal Service will continue modernization efforts to ensure the timeliness of 

these reports and anticipates it will continue to achieve the 100 percent target for FY 2013. The 

Fiscal Service will discontinue the Percentage of Government-Wide Accounting Reports Issued 

Accurately measure, but will continue to track the accuracy of reports internally. The measure 

will be discontinued in order to focus on the reports being issued on time and improve financial 
FS - 25

decision making. The discontinued measure will be replaced with the following measure, 

Percentage of Government-wide Accounting Reports, which include the Daily Treasury 

Statement (DTS), Monthly Treasury Statement (MTS), and consolidated Financial Report (FR), 

Issued on Time.

In FY 2011 GWA’s Unit Cost to Manage $1 Million Dollars of Cash Flow was $6.93, achieving 

its target. The decrease unit cost is attributable to the significant increase in cash flows over the 

past two years versus the ten year linear trend on which the target estimate is based. The Fiscal 

Service anticipates the unit cost to increase to $7.32 in FY 2012. In FY 2013 Fiscal Service’s 

implementation of modernization efforts as well as efficiencies gain in information technology 

will help reduce the Fiscal Service’s costs associated with this measure by replacing the legacy 

system which is not cost efficient and uses outdated technology. The new system will provide 

critical financial information to the Federal Government, such as, budgetary results on a monthly 

basis, Federal programs spending authority, maintain the Federal Government’s account 

structure and account for and report the Government’s operating cash. The Fiscal Service will 

discontinue this measure in FY 2013 due to an effort to streamline performance reporting, but 

will continue to track the measure internally. The goal owner for this budget activity is the 

Assistant Commissioner, Government-wide Accounting.

3.1.5 – Government-wide Accounting and Reporting Budget and Performance Report and 

Plan

Government-wide Accounting and Reporting Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $62,653 $64,510 $68,642 $70,547 $71,826 $68,804 $64,374 $62,002

 Reimbursable Resources $500 $1,122 $0 $3,179 $4,123 $4,215 $4,412 $3,288

Total Resources $63,153 $65,632 $68,642 $73,726 $75,949 $73,019 $68,786 $65,290 

Budget Activity Total $62,153 $65,632 $68,642 $3,726 $75,949 $73,019 $68,786 $65,290

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Percentage of GovernmentWide Accounting Reports 

Issued Timely 

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Percentage of GovernmentWide Accounting Reports 

Issued Accurately (%)

100.0 100.0 100.0 100.0 100.0 100.0 100.0 DISC

Unit Cost to Manage $1 

Million Dollars of Cash Flow

B 10.36 8.958 7.08 7.36 6.93 7.32 DISC

Key: DISC - Discontinued and B - Baseline
FS - 26

3F – Payments

($128,040,000 from direct appropriations, and $102,401,000 from reimbursable programs): 

The Payments Program supports the Fiscal Service’s strategic goal to provide timely, accurate, 

and efficient disbursement of Federal Government payments. The Fiscal Service is responsible 

for managing and operating Federal payment systems and disbursing approximately 84 percent 

of all Federal payments. Major payments include: Social Security Benefits, Supplemental 

Security Income, Federal Pension Benefits, Veterans’ Compensation and Pension, Railroad 

Retirement Pensions, and tax refunds. 

The Payments Program is also responsible for controlling and providing financial integrity to the 

payments process through reconciliation, accounting, and claims activities. The claims activity 

settles claims against the United States resulting from Federal Government checks that have been 

forged, lost, stolen, or destroyed as well as claims and reclamations for Electronic Funds 

Transfers (EFTs) payments. The Fiscal Service collects monies from those parties liable for 

fraudulent or otherwise improper negotiation of Government checks. 

The activity also supports the Paperless Treasury initiative by encouraging recipients to convert 

to electronic payment methods. Electronic payments provide timely, accurate, and efficient 

disbursement of Federal Government payments; minimize the costs associated with postage and 

the re-issuance of lost or stolen checks; and protect against fraud and identity theft. The Fiscal 

Service’s nationwide campaign called “Go Direct” encourages current check recipients to switch 

to direct deposit. To date, Go Direct has been responsible for approximately 7.15 million 

estimated EFT conversions. For beneficiaries who prefer a prepaid debit card or those who do 

not have a bank account, the Fiscal Service offers the Direct Express® card, which enables 

benefit payments to be automatically deposited into the recipient’s card account on the payment 

date. The card is currently available to Social Security, Supplemental Security Income, 

Veterans’ Compensation and Pension, Railroad Retirement Board, Office of Personnel 

Management and Department of Labor benefit recipients. In FY 2011, more than 2.45 million 

beneficiaries have signed up for the Direct Express® card. The combined impact of both 

programs will save millions of dollars to the taxpayer in years to come.

In support of its payments function, the Fiscal Service has also undertaken considerable efforts to 

modernize its payment systems, incorporating new technologies and the internet. Some 

programs that will continue to be in focus are:

• Stored Value Card (SVC): The SVC is a smartcard similar to a credit/debit card, which aims 

to reduce the float-loss and risk associated with the more than $2 billion in coin and currency 

in circulation at military bases, ships at sea, and other closed Government locations around

the world. 

• Internet Payment Platform (IPP): The IPP is a centralized, secure, web-based application 

service that accepts, processes, and presents data from agencies and supplier systems related 

to all stages of electronic order-to-payment transactions. IPP will offer an e-invoicing portal 

for all Government agencies and supports the Office of Financial Innovation and 

Transformation’s (OFIT) initiative to develop a standard for electronic invoicing 

Government-wide.
FS - 27

• Payment Application Modernization (PAM): The PAM project is an effort to replace the 

current mainframe-based software applications that are used to disburse approximately one 

billion Federal payments annually. 

• Post Payment Systems Consolidation: The Fiscal Service will undertake an effort to 

streamline its post-payment processes and systems by merging at least seven of its back-end 

systems into a consolidated post-payment system in order to eliminate redundant data, 

systems, and processes, thereby increasing the Fiscal Service's overall operational efficiency 

and cost-effectiveness. 

Description of Performance:

In FY 2011 the Fiscal Service achieved its target of 100 percent for its measure Percentage of 

Paper Check and EFT Payments Made Accurately and On-Time. The Fiscal Service achieved its 

target by continuing to streamline and modernize its payment processes and expects to achieve 

the same results in FY 2012 and FY 2013. The Fiscal Service will discontinue reporting this 

measure externally in FY 2013 due to an effort to streamline performance reporting, but will 

continue to track the measure internally. 

The measure Percentage of Treasury Payments and Associated Information Made Electronically

supports Treasury’s paperless agency priority goal. Due to the continued success of the Go 

Direct and Direct Express® programs and implementation of the Paperless Treasury initiative in

FY 2011, the Fiscal Service issued more than 84 percent of its payments via EFT, exceeding its 

target of 83 percent. The Fiscal Service expects to achieve its targets in FY 2012 and FY 2013 

by expanding electronic conversion efforts to additional benefit agencies and payment types, 

such as other vendor miscellaneous payments and IRS refunds.

The measure Unit Cost for Federal Government Payments measures how efficiently the 

payments program is managed. This includes both paper and electronic payment mechanisms 

and the corresponding aftermath processes (reconciliation and claims). In FY 2011, the Fiscal 

Service unit cost was $0.37, exceeding its target of $0.40 per payment. This is a result of higher 

than expected conversions from paper check to EFT, the Paperless Treasury initiative, and 

transition of the Austin Payment Center to a debt collection center. The Fiscal Service 

anticipates the unit cost per payment to remain constant at $0.37 in FY 2012 due to an increase 

in EFT payments and subsequent decrease in check payments and from the cost savings from the 

payment center conversion. In FY 2013, the modernization efforts along with implementing the 

Paperless Treasury initiative will help to ensure that unit costs continue to decrease. The Fiscal 

Service will discontinue this reporting this measure in FY 2013 due to an effort to streamline 

performance reporting, but will continue to track the measure internally. The goal owner for this 

budget activity is the Assistant Commissioner, Payment Management (Chief Disbursing Officer).
FS - 28

3.1.6 – Payments Budget and Performance Report and Plan

Dollars in Thousands 

Payments Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $144,135 $148,408 $145,977 $147,717 $150,395 $141,358 $132,265 $128,040 

 Reimbursable Resources $127,085 $132,712 $137,849 $138,584 $137,057 $131,060 $129,561 $102,401 

Total Resources $271,220 $281,120 $283,826 $286,301 $287,452 $272,418 $261,826 $230,441 

Budget Activity Total $271,220 $281,120 $283,826 $286,301 $287,452 $272,418 $261,826 $230,441 

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Percentage of Paper Check 

and Electronic Funds Transfer 

(EFT) Payments Made 

Accurately and On-Time

100.0 100.0 100.0 100.0 100.0 100.0 99.9 DISC

Percentage of Treasury 

Payments and Associated 

Information Made 

Electronically 

77.0 78.0 79.0 81.0 82.0 83.0 85.0 89.0

Unit Cost For Federal 

Government Payments

0.37 0.39 0.394 0.37 0.36 0.37 0.37 DISC

Key: DISC - Discontinued and B - Baseline

3G – Retail Securities Services (RSS)

($101,686,000 from direct appropriations, including $1,000,000 from Legacy Treasury Direct 

User Fee collections, and $16,841,000 from reimbursable programs):

Fiscal Service’s RSS Program works to finance Government operations by selling marketable 

and savings securities directly to retail investors. The program serves more than 50 million retail 

customers. The Fiscal Service continues to encourage investors to move their paper savings 

bond holdings to TreasuryDirect, an online system that allows investors to buy, hold, manage, 

and redeem electronic Treasury securities directly from Treasury, through financial literacy 

programs that target customers not yet accustomed to conducting financial transactions online.

The Fiscal Service plans to decommission Legacy Treasury Direct from the Federal Reserve 

mainframe environment to avoid the substantial costs that will fall upon residual systems as that 

environment is phased out. Issues in Legacy Treasury Direct will be eliminated with a sunset 

date of November 2012. 

The RSS Program is working on developing new Treasury securities that will provide simple, 

safe and affordable ways for Americans to save. In FY 2013, new savings program pilots will 

end, and RSS will implement programs based on the results of the pilots. The Fiscal Service will 
FS - 29

continue to oversee the programs and provide customer support as needed. The goal owner for 

this budget activity is the Assistant Commissioner, Office of Retail Securities.

Other Resources: Offsetting collections totaling $1,000,000 are collected for Legacy Treasury 

Direct Investor Account maintenance fees. In addition, reimbursements of $16,841,000 are 

allocated to this program for providing administrative support to the Fiscal Service’s franchise 

operation. 

Description of Performance: 

The Cost per TreasuryDirect Assisted Transaction performance measure demonstrates the Fiscal 

Service’s efficiency in responding to customer inquiries. Although TreasuryDirect promotes 

investor self-service, there are times when assistance from a customer service representative is 

necessary. Representatives handle phone and email inquiries, offline authentication forms 

processing, conversions, changes in bank information, and transactions requiring legal evidence. 

In FY 2011, this cost was $3.00, which was below the target of $7.95. This outcome occurred 

because the volume of customer service requests increased over original projections as customers 

transitioned to TreasuryDirect from Legacy Treasury Direct and the paper payroll savings bond 

program. 

The cost per TreasuryDirect assisted transaction is projected at $4.74 in FY 2012 and $5.70 in 

FY 2013. The Fiscal Service projects a slight increase in the cost per transaction in FY 2013 as 

additional resources are needed to assist new customers who transition from legacy programs 

and are less familiar with online financial systems. The Fiscal Service recently enhanced 

TreasuryDirect to implement machine-to-machine authentication to make it easier for customers 

to access their TreasuryDirect accounts. This new security measure eliminates the need for 

access cards, which is anticipated to increase the number of TreasuryDirect customers. This 

should reduce the number of customers requiring assistance to access their accounts and will 

help offset the services needed by new customers who transition from paper savings bonds and 

the Legacy Treasury Direct system.

The internet-based TreasuryDirect system allows investors to set up accounts, purchase 

electronic securities, and manage their holdings without customer assistance. In FY 2011 the 

Cost per TreasuryDirect Online Transaction was $3.64, which was below the targeted cost of 

$5.46. This occurred because volumes were significantly higher than expected as customers 

transitioned to TreasuryDirect from the Legacy Treasury Direct and paper payroll savings bond 

programs. The cost per TreasuryDirect online transaction is projected at $3.04 in FY 2012 and 

$2.99 in FY 2013. The drop in the cost per transaction is a result of an increase in anticipated 

volumes as customers continue to transition to TreasuryDirect from the paper savings bonds 

program and the Legacy Treasury Direct system. While the Fiscal Service takes steps to 

encourage participation in TreasuryDirect, it is able only to influence rather than control the 

volume of transactions.

RSS is committed to supporting Treasury's Paperless initiative by ending the sale of paper 

savings bonds and decommissioning Legacy Treasury Direct. The program will encourage 

people to buy securities, access their accounts and conduct transactions electronically. 

Beginning in FY 2011, RSS began measuring the increase in the number of customers who buy 
FS - 30

Treasury securities electronically. In FY 2012, the program expects a 20 percent increase from 

FY 2011 levels in customers purchasing retail securities electronically. RSS expects to meet this 

goal since it discontinued the sale of paper savings bonds by December 31, 2011, continued to 

limit certain Legacy Treasury Direct offerings, and enhanced TreasuryDirect to improve the 

customer experience. For FY 2013, the program expects a 10 percent increase over FY 2012 

levels.

The RSS Program did not meet its FY 2011 target for the measure Percentage of Retail 

Customer Service Transactions Completed within 5 Business Days. Performance was on target 

through March 2011, when the announcement to curtail services in Legacy Treasury Direct 

initiated an influx of customer requests to transfer holdings from Legacy Treasury Direct to 

TreasuryDirect. In the last six months of the fiscal year, RSS processed nearly 100 times its 

typical volume of these manually intensive transfer transactions. This increased workload 

caused the Fiscal Service to complete only 73.1 percent of time-sensitive retail customer service 

transactions within five business days and to miss the target of 87 percent. In FY 2012, RSS will 

maintain a target of 87 percent. In FY 2013, RSS anticipates it will meet its target of 88 percent 

by continually streamlining work processes and increasing the volume of electronic business 

transactions. Transactions include answering phone and email inquiries, processing payments or 

changes to payment instructions, and handling TreasuryDirect requests. 
FS - 31

3.1.7 – Retail Securities Services Budget and Performance Report and Plan

Dollars in Thousands 

Retail Securities Services Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $147,529 $137,020 $135,690 $139,109 $139,569 $135,337 $116,260 $101,686

 Reimbursable Resources $13,854 $9,029 $9,066 $16,293 $15,554 $16,336 $17,884 $16,841

Total Resources $161,383 $146,049 $144,756 $155,402 $155,123 $151,673 $134,144 $118,527

Budget Activity Total $161,383 $146,049 $144,756 $155,402 $155,123 $151,673 $134,144 $118,527

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Cost Per TreasuryDirect 

Assisted Transaction ($) 

4.97 6.65 8.19 8.72 8.23 3.00 4.74 5.70

Cost Per TreasuryDirect 

Online Transaction ($) 

3.06 3.24 4.34 5.21 6.12 3.64 3.04 2.99

Increase the Number of 

Customers who buy Treasury 

Retail Securities Electronically

N/A N/A N/A N/A N/A 144,997 174,000 191,400

Percentage of Retail 

Customer Service 

Transactions Completed 

within 5 Business Days (%) 

N/A N/A N/A 86.0 92.7 73.1 87.0 88.0

Key: DISC - Discontinued and B – Baseline

3H – Summary Debt Accounting (SDA)

($8,254,000 from direct appropriations, and $1,153,000 from reimbursable programs): 

The SDA Program is related to the organization’s strategic goal of effectively accounting for the 

debt of the Federal Government. SDA is vital to meeting the Fiscal Service's responsibility to 

account for more than $14 trillion of public debt and over $400 billion in related interest 

expenses incurred to finance the operations of the Federal Government. 

The program produces daily reports on the balances and composition of the public debt, the 

Monthly Statement of the Public Debt, and the annual, audited Schedules of Federal Debt, which 

reports on the single largest liability in the annual FR. SDA has received an unqualified opinion 

on the Schedules of Federal Debt for the past 15 years. The goal owner for this budget activity is

the Assistant Commissioner, Office of Public Debt Accounting.

Other Resources: Reimbursements totaling $1,153,000 are allocated to this program for 

providing administrative support to the Fiscal Service’s franchise operation. 
FS - 32

Description of Performance:

The Fiscal Service tracks the Cost per Summary Debt Accounting Transaction, which includes 

reporting all financial activity related to the public debt of the United States. Issues, 

redemptions, and interest payments on the public debt must be accounted for to calculate the 

amount of debt outstanding and interest paid. In FY 2011, SDA's cost per summary debt 

accounting transaction was $14.80, which was below its targeted transaction cost of $15.50. 

In order to maintain and improve operational efficiency in the future, the Fiscal Service is 

currently modernizing the summary debt accounting environment. As a result, the program 

projects the cost per summary debt accounting transaction to be $23.80 in FY 2012 and $23.29 in 

FY 2013. Beginning in FY 2012, the calculation of the cost per item is based on a five-year 

rolling average volume to limit the impact of transaction volatility in SDA. Prior to FY 2012, 

each calculation was based upon one-year's estimated volumes. The FY 2012 projected cost per 

summary debt accounting transaction is increasing over FY 2011 as a direct result of the 

development costs to redefine and modernize the SDA environment. The FY 2013 projection is 

decreasing due to the reduced level of system development costs during the fiscal year, as well as 

the operational efficiencies gained through the modernization effort. 

In FY 2011 the Percent of Summary Debt Accounting Business Processes Restructured or 

Eliminated was 9.5 percent, surpassing the target of six percent. This goal was met due to an 

increased resource focus as a part of the Fiscal Service’s effort to modernize the debt accounting 

environment and reengineer business processes to better support SDA needs. The Fiscal Service 

plans to restructure or eliminate six percent of business processes during FY 2012 and 26 percent 

of business processes during FY 2013. The organization expects the project to provide 

requirements for moving to a shared service solution, ensure consistent processes across the 

board, drive improvements in the subsidiary reporting systems, and ultimately create greater 

efficiency within the debt accounting programs at the summary and subsidiary levels.
FS - 33

3.1.8 – Summary Debt Accounting Budget and Performance Report and Plan

Dollars in Thousands 

Summary Debt Accounting Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $5,558 $7,244 $7,608 $7,082 $10,266 $9,195 $8,836 $8,254

 Reimbursable Resources $522 $470 $453 $827 $1,144 $1,110 $1,216 $1,153

Total Resources $6,080 $7,714 $8,061 $7,909 $11,410 $10,305 $10,052 $9,407

Budget Activity Total $6,080 $7,714 $8,061 $7,909 $11,410 $10,305 $10,052 $9,407

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Cost Per Summary Debt 

Accounting Transaction ($) 

10.96 9.29 9.11 8.66 11.28 14.80 23.80 23.29

Percent of Summary Debt 

Accounting business 

processes restructured or 

eliminated (%) 

N/A N/A N/A N/A 6.0 9.5 6.0 26.0

Key: DISC - Discontinued and B – Baseline

3I – Wholesale Securities Services (WSS)

($21,490,000 from direct appropriations, and $3,000,000 from reimbursable programs): 

The WSS Program supports the Fiscal Service’s strategic goal to effectively finance Government

operations. WSS is responsible for the announcement, auction, issuance and settlement of 

marketable Treasury bills, notes, bonds and Treasury Inflation-Protected Securities. The 

program also oversees that portion of the Federal infrastructure that provides for the transfer, 

custody and redemption of all Treasury marketable securities, which are purchased mostly by 

commercial market participants. 

The auction program, an element of the WSS Program, is an essential function for Treasury that

enables the Federal Government to finance operations. WSS ensures that communications, 

systems, processes and contingency plans provide for high-level performance and business 

continuity for wholesale auction operations. 

Another major component of this program is the commercial book entry system, which holds 

approximately $9.5 trillion, or 99 percent, of Treasury marketable securities. Treasury uses this 

system to issue most of its marketable debt, make principal and interest payments, and support 

the active secondary market in Treasury securities. It is estimated that about $1 trillion per day 

in Treasury securities are transferred among account holders in the commercial book-entry 

system. The goal owner for this budget activity is the Assistant Commissioner, Office of 

Financing.
FS - 34

Other Resources: Reimbursements totaling $3,000,000 are allocated to this program for 

providing administrative support to the Fiscal Service’s franchise operation.

Description of Performance: 

The Fiscal Service strives to efficiently deliver its debt financing operations, including auctions 

and buybacks, at the lowest possible cost. In FY 2011WSS's Cost per Debt Financing Operation

was $157,284, which was below the targeted cost of $161,726, as both appropriated and Federal 

Reserve Bank expenses were lower than anticipated. Beginning in FY 2012, the cost per debt 

financing operation is calculated by dividing the five-year rolling average of the annual number 

of auctions, rather than by the number of auctions in the current year, into the cost of debt 

financing operations. This limits the impact of external, uncontrollable variables on the measure. 

The cost per debt financing operation is estimated at $173,589 in FY 2012, and $146,218 in FY 

2013. The decrease in the cost per debt financing operation from FY 2012 to FY 2013 is 

primarily due to the cost of the Treasury Automated Auction Processing System software being 

fully amortized by March 2013. In addition to these factors, the Fiscal Service decided to extend 

the useful service life of its fully depreciated auction system hardware, thereby avoiding 

replacement costs and increases in its cost per debt financing.

The Fiscal Service has achieved its target of 100 percent for the measure Percent of Auction 

Results Released in Two Minutes +/- 30 Seconds. This target has been met since the 

implementation of the latest version of the Treasury Automated Auction Processing System in 

April 2008. It is essential that WSS releases auction results accurately and consistently to 

support Treasury's goal to manage the Government’s finances in a fiscally responsible manner by 

issuing debt in a regular and predictable pattern. Ultimately, the accurate and timely release of 

the auction results contributes to the preservation of public confidence in Treasury securities and 

the stability of the financial market. WSS plans to continue to achieve its target by ensuring that 

upgrades to this software keep pace with technology changes. 

The Fiscal Service has implemented a strategic plan with primary dealers for contingency 

auction processing. The plan outlines various operational tests and events that strengthen overall 

readiness to deal with contingencies and ensure the continuity of the auction process. WSS's 

long-term goal of having 90 percent of primary dealers submit live bids from their disaster 

recovery sites on two separate auction dates will conclude in FY 2012. In FY 2011, the Fiscal 

Service achieved 100 Percent of Primary Dealers that Submit Live Bids from Their Disaster 

Recovery Site on Two Separate Auction Dates, exceeding the target of 70 percent. This measure 

will be discontinued in FY 2013, though the Fiscal Service expects dealers to continue to 

regularly participate in live auctions from their disaster recovery sites as part of "best practices" 

for Treasury auctions. New performance measures that will demonstrate the efficiency and/or 

effectiveness of WSS operations will be developed.
FS - 35

3.1.9 Wholesale Securities Services Budget and Performance Report and Plan

Dollars in Thousands 

Wholesale Securities Services Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $11,812 $19,996 $23,828 $23,438 $24,396 $24,058 $23,120 $21,490

 Reimbursable Resources $1,109 $1,298 $1,302 $2,378 $2,719 $2,904 $3,179 $3,000

Total Resources $12,921 $21,294 $25,130 $25,816 $27,115 $26,962 $26,299 $24,490

Budget Activity Total $12,921 $21,294 $25,130 $25,816 $27,115 $26,962 $26,299 $24,490

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Cost Per Debt Financing 

Operation ($) 

148,926 235,172 220,732 170,214 162,378 157,284 173,589 146,218

Percent of Auction Results 

Released in Two Minutes +/-

30 Seconds (%) 

100.0 99.1 100.0 100.0 100.0 100.0 100.0 100.0

Percent of Primary Dealers 

that submit live bids from their 

disaster recovery site on two

separate auction dates (%)

N/A N/A N/A N/A 78.0 100.0 90.0 DISC

Key: DISC - Discontinued and B - Baseline

Detailed information about each performance measure, including definition, verification and 

validation is available.
FS - 36

Section 4 – Supplemental Information

4A – Capital Investment Strategy

The Fiscal Service continues to lead the way for responsible, effective Government through 

commitment to cutting-edge technologies, service, efficient operations, sharing of best practices 

and openness to change, in order to meet the operating needs of the Federal Government. The 

capital investment strategy supports long-range planning and the economic policies and mission 

of the Department of the Treasury. In executing this strategy, Fiscal Service systematically 

analyzes the demand for its services, considers effective methods for delivery of these services 

and identifies the broad asset implications through sound managerial practices.

The Fiscal Service has an established governance process that selects, evaluates and monitors 

new and existing IT investments. This process complies with Department of the Treasury and 

OMB requirements for capital planning and investment control and enterprise architecture. 

Before projects are started or a major change implemented, a formal review process ensures 

alignment of IT investments to strategic plans and identifies potential duplication of systems. 

The process prioritizes new and existing IT investments. Each project provides business case 

documentation, which describes the project, documents benefits, and shows start-up costs, full 

life-cycle costs, other systems impacted, programmatic impact and platforms that will be used.

Additionally, projects are subject to quarterly cost, performance, and schedule updates. Any 

project that is not within acceptable limits must provide a remediation plan detailing the steps it 

plans to implement to get the investment back within acceptable ranges. By tracking and 

reporting the progress of each investment and the performance measures achieved, the 

Fiscal Service ensures its IT investment portfolio is well managed and cost effective. 

In order to execute projects effectively, each IT investment has a program manager and a 

program team to ensure the successful and timely implementation of new products and services. 

The use of commercial, off-the-shelf technology and enterprise solutions has provided benefits 

including decreased costs and development time. The systems that support each investment are 

enhanced using Rapid Application Development techniques that give the program manager the 

flexibility to quickly incorporate new functionality and improve efficiency across the 

organization. 

The Fiscal Service is prioritizing capital investments that will promote the overarching goal of

managing the Government’s finances in a fiscally responsible manner. Efforts include 

modernizing the payments system, the Federal Government’s central accounting and reporting 

system, the summary debt accounting system, and the collections and cash management systems 

to eliminate duplicative functions, simplify systems and enhance service. Additionally, the 

Fiscal Service will reduce improper payments, enhance borrowing capabilities, consolidate 

legacy systems into a more efficient and cost effective program, increase efforts to collect more 

delinquent debt through investments in state-of-the-art debt collection tools, and improve 

Treasury Retail customer service tools.

A summary of capital investment resources, including major information technology and nontechnology investments is available.
FS - 37

4B – Historical Tables

Table 4.1 – Appropriations Detail Table (BPD)

Dollars in Thousands

* Total Appropriated Resources in FY 2011, 2012, and 2013 include $10 million, $8 million, and $1 million in 

projected Legacy Treasury Direct User Fee collections, respectively. 

Table 4.2 – Appropriations Detail Table (FMS)

Dollars in Thousands

* A portion of the Offsetting Collections/Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt 

Collection Improvement Act (DCIA) of 1996.

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

GOVerify Business Center 0 0 7 10,000 7 5,000 0.00% -50.00%

Government Agency Investment Services 88 16,045 83 15,419 76 13,672 -8.43% -11.33%

Retail Securities Services 740 135,337 676 116,260 605 101,686 -10.50% -12.54%

Summary Debt Accounting 50 9,195 47 8,836 43 8,254 -8.51% -6.59%

Wholesale Securities Services 131 24,058 124 23,120 113 21,490 -8.87% -7.05%

Subtotal New Appropriated Resources 1,009 $184,635 937 $173,635 844 $150,102 -9.93% -13.55%

Other Resources:

Offsetting Collections/Reimbursable/Fee $22,287 $24,507 $23,070 0.00% -5.86%

Unobligated Balances from PY 4,000 4,000 2,000 0.00% -50.00%

Subtotal Other Resources 0 $26,287 0 $28,507 0 $25,070 0.00% -12.06%

Total Resources Available for Obligation 1,009 $210,922 937 $202,142 844 $175,172 -9.93% -13.34%

Resources Available for Obligation

FY 2011 Enacted FY 2012 Enacted FY 2013 Request

% Change 

FY 2012 to FY 2013

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Payments 817 $141,358 677 $132,265 660 $128,040 -2.51% -3.19%

Collections 145 22,624 121 21,166 117 20,387 -3.31% -3.68%

Government-wide Accounting and Reportin 413 68,804 342 64,374 333 62,002 -2.63% -3.68%

Subtotal New Appropriated Resources 1,375 $232,786 1,140 $217,805 1,110 $210,429 -2.63% -3.39%

Other Resources:

Offsetting Collections/Reimbursable/Fee 460 216,730 561 231,223 619 224,481 10.25% -2.92%

Subtotal Other Resources 460 $216,730 561 $231,223 619 $224,481 10.25% -2.92%

Total Resources Available for Obligation 1,835 $449,516 1,701 $449,028 1,729 $434,910 1.62% -3.14%

% Change 

FY 2012 to FY 2013

Resources Available for Obligation

FY 2011 Enacted FY 2012 Enacted FY 2013 Request
FS - 38

Table 4.3 -- Operating Levels Table (BPD)

Dollars in Thousands

Bureau of the Public Debt FY 2011 

Actual

FY 2012 

President's 

Budget

FY 2012

Enacted

Proposed 

Reprogrammings

FY 2012 

Proposed 

Operating 

Level

FTE 906 987 937 937

Object Classification:

11.1 Full-Time Permanent Positions........................ $60,763 $64,595 $64,595 $64,595

11.3 Other than Full-Time Permanent Positions....... 589 533 533 533

11.5 Other Personnel Compensation....................... 2,231 2,151 2,151 2,151

11.8 Special Personal Services Payments............... 0 32,956 32,956 32,956

11.9 Personnel Compensation (Total).................. $63,583 $100,235 $100,235 $0 $100,235

12.0 Personnel Benefits........................................... 18,882 19,950 19,950 19,950

13.0 Benefits to Former Personnel........................... 30 30 30 30

21.0 Travel............................................................... 853 1,132 1,132 1,132

22.0 Transportation of Things.................................. 81 91 91 91

23.1 Rental Payments to GSA................................. 9,517 15,299 15,299 15,299

23.2 Rent Payments to Others................................. 4 2 2 2

23.3 Communications, Utilities, & Misc.................... 6,380 4,952 4,952 4,952

24.0 Printing and Reproduction................................ 621 935 935 935

25.1 Advisory & Assistance Services....................... 88 1,987 1,987 1,987

25.2 Other Services................................................. 15,736 11,844 11,844 11,844

25.3 Purchase of Goods/Serv. from Govt. Accts...... 50,177 13,417 13,417 13,417

25.4 Operation & Maintenance of Facilities.............. 793 896 896 896

25.6 Medical Care.................................................... 2 13 13 13

25.7 Operation & Maintenance of Equipment........... 205 265 265 265

25.8 Subsistence & Support of Persons................... 8 0 0 0

26.0 Supplies and Materials..................................... 1,239 1,757 1,757 1,757

31.0 Equipment........................................................ 450 687 687 687

32.0 Lands and Structures....................................... 161 143 143 143

42.0 Insurance Claims & Indemn............................. 3 0 0 0

Total Budget Authority..........................................$168,813 $173,635 $173,635 $0 $173,635

Budget Activities:

Wholesale Securities Services.............................. 21,000 23,120 23,120 23,120

Government Agency Investment Services............... 16,257 15,419 15,419 15,419

Retail Securities Services.................................... 118,389 116,260 116,260 116,260

Summary Debt Accounting.................................... 13,167 8,836 8,836 8,836

GOVerify Business Center.................................... 0 10,000 10,000 10,000

Total Budget Authority..........................................$168,813 $173,635 $173,635 $0 $173,635
FS - 39

Table 4.4 – Operating Levels Table (FMS)

Dollars in Thousands

Financial Management Service FY 2011 

Actual

FY 2012 

President's 

Budget

FY 2012

Enacted

Proposed 

Reprogrammings

FY 2012 

Proposed 

Operating

 Level

FTE 1,727 1,200 1,140 1,140

Object Classification:

11.1 Full-Time Permanent Positions........................ $116,202 $106,725 $106,191 0 $106,191

11.3 Other than Full-Time Permanent Positions....... 1,787 1,540 1,540 0 1,540

11.5 Other Personnel Compensation....................... 117 5,081 5,081 0 5,081

11.8 Special Personal Services Payments............... 0 3,603 3,603 0 3,603

11.9 Personnel Compensation (Total).................. $118,106 $116,949 $116,415 $0 $116,415

12.0 Personnel Benefits........................................... 30,745 26,289 26,169 0 26,169

13.0 Benefits to Former Personnel........................... 700 180 180 0 180

21.0 Travel............................................................... 1,016 1,511 1,511 0 1,511

22.0 Transportation of Things.................................. 212 278 278 0 278

23.1 Rental Payments to GSA................................. 12,807 12,313 12,313 0 12,313

23.2 Rent Payments to Others................................. 818 677 677 0 677

23.3 Communications, Utilities, & Misc.................... 9,708 9,942 9,893 0 9,893

24.0 Printing and Reproduction................................ 317 505 505 0 505

25.1 Advisory & Assistance Services....................... 6,364 6,062 6,062 0 6,062

25.2 Other Services................................................. 17,658 10,109 10,109 0 10,109

25.3 Purchase of Goods/Serv. from Govt. Accts...... 8,453 15,080 15,080 0 15,080

25.4 Operation & Maintenance of Facilities.............. 912 405 405 0 405

25.5 Research & Development Contracts................ 0 0 - 0 0

25.6 Medical Care.................................................... 0 0 - 0 0

25.7 Operation & Maintenance of Equipment........... 9,942 8,085 8,085 0 8,085

25.8 Subsistence & Support of Persons................... 0 0 - 0 0

26.0 Supplies and Materials..................................... 3,001 2,794 2,767 0 2,767

31.0 Equipment........................................................ 6,018 7,071 6,801 0 6,801

32.0 Lands and Structures....................................... 1,053 505 505 0 505

33.0 Investments & Loans........................................ 0 0 - 0 0

41.0 Grants, Subsidies............................................. 0 0 - 0 0

42.0 Insurance Claims & Indemn............................. 9 50 50 0 50

43.0 Interest and Dividends................................. 0 0 - 0 0

44.0 Refunds............................................................ 0 0 - 0 0

Total Budget Authority..........................................$227,839 $218,805 $217,805 $0 $217,805

Budget Activities:

Payments......................................................... 138,354 132,868 132,265 0 132,265

Collections......................................................... 22,143 21,265 21,166 0 21,166

Government-wide Accounting and Reporting............ 67,342 64,672 64,374 0 64,374

Total Budget Authority..........................................$227,839 $218,805 $217,805 $0 $217,805