Treasury Franchise Fund 

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Budget Activity Actuals 

Revised 

Estimate Estimate $ Change % Change 

Treasury Shared Services Program 356,934 314,318 326,772 14,427 3.96% 

Centralized Treasury Administrative Services 131,449 146,043 160,151 10,645 9.66% 

Administrative Support Services 208,491 191,029 205,796 16,452 7.73% 

Information Technology Services 196,417 214,837 220,606 4,197 2.69% 

Subtotal, Treasury Franchise Fund $893,291 $866,227 $913,325 $45,721 5.44% 

Offsetting Collections - Reimbursable 838,745 806,022 857,079 51,057 6.33% 

Recovery from Prior Years 14,000 13,000 13,000 -1,201 0.00% 

Unobligated Balances Brought Forward 168,000 123,946 137,008 -17,385 10.54% 

Total Program Operating Level $1,020,745 $942,968 $1,007,087 $32,471 6.80% 

Reimbursable FTE 2,036 2,212 2,209 65 -0.14% 

Total Full-time Equivalents (FTE) 2,036 2,212 2,209 65 -0.14% 

*The Financial Management Administrative Support Service and Shared Services Programs, as denoted in the President’s budget is also 

referred to as the Administrative Services and Treasury Shared Services Program, respectively. 

Summary 

The Treasury Franchise Fund (TFF) supports effective administrative and information 

technology services through commitment to service, efficient operations, openness to change, 

and values-based behavior. The TFF achieves cost savings leveraging economies of scale which 

promote efficient use of resources by shared service providers. 

The TFF providers include Departmental Offices’ Treasury Shared Services Programs (TSSP), 

Departmental Offices’ Centralized Treasury Administrative Services (CTAS), and the Bureau of 

the Fiscal Service’s Administrative Resource Center (ARC). TFF shared service providers offer 

financial management, procurement, travel, human resources, information technology, and other 

administrative services to federal customers on a fully cost recoverable, fee-for-service basis. 

The TFF FY 2023 Congressional Budget Justification reflects revised estimates for FY 2022 

along with new funding estimates for FY 2023. The revised estimates in FY 2022 for ARC 

Administration (Admin) includes an increase in resources to meet critical workforce demands for 

increased hiring and related human resource actions to help Bureaus and Offices achieve 

missions and priorities. The revised estimates also include a reduction in resources needed in 

ARC Information Technology’s (IT) planned operations and maintenance support because of 

efficiency gains realized from modernizations efforts to transition to cloud and low-code 

solutions for applications and services. Additionally, the FY 2022 revised estimates include a 

decrease in CTAS resources due to deferment of IT modernization investments. 

In FY 2023, TSSP will continue to support efforts in cybersecurity with the additional 

transferred operations and maintenance costs for initiatives developed under the Cybersecurity 

Enhancement Account (CEA). These cybersecurity initiatives will be deployed and 

implemented as a shared service to support enterprise-wide services and capabilities to 

strengthen the cybersecurity posture across the components of the Department of Treasury. 

Additionally, TSSP and CTAS programs will also support efforts related to the Secretary’s 
priorities associated with IT Modernization and Advancing Equity in Treasury Programs. 

In FY 2023, ARC Admin will complete foundational initiatives from the business transformation 

effort (“oneARC”) and begin realizing operational efficiencies. The effort will simplify customer 

financial management (FM) services, increase customer FM maturity and public trust, and 

maximize ARC value. 

Budget Highlights

Dollars in Thousands 

 FTE Amount 

FY 2022 Original Estimate 

 

2,219 $893,144 

Adjustments to FY 2022 Original Estimate (7) ($11,979) 

Deferred IT System Modernization and Investments (CTAS)1

 (27) ($8,497) 

Increased Personnel Resources/IT Modernization (ARC Admin/IT) 20 ($3,482) 

FY 2022 Revised Estimate 

 

2,212 $881,165 

Changes to Base: 

Maintaining Current Levels (MCLs): 

 

$23,695 

Pay Annualization (2.7% average pay raise) $1,832 

Pay-Raise (4.6% average pay raise) $9,429 

Non-Pay $12,434 

Subtotal Changes to Base 

 

$23,695 

FY 2023 Current Services 2,212 $904,860 

Program Changes: 

Program Increases: 10 $24,254 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (TSSP) 4 $1,120 

IT Systems Modernization and Program Support (TSSP) 3 $3,386 

Advancing Equity in Treasury Programs (TSSP) 3 $515 

IT System Modernization (CTAS) 0 $13,835 

Cyber Infrastructure (CTAS) 0 $3,398 

Facilities Infrastructure (CTAS) 0 $2,000 

Program Decreases: (13) ($10,003) 

Business Transformation Efforts (ARC Admin) (13) ($10,003) 

Subtotal Program Changes 

 

(3) $14,251 

FY 2023 Estimate 

 

2,209 $919,111 1

In FY 2022, Centralized Treasury Administrative Services reflects an additional reduction to FTE levels from the amounts 

presented in the President’s budget. This is due to the extended continuing resolution (CR). 

Budget Adjustments 

Adjustments to FY 2022 Original Estimate ................................. -$11,979,000 /-7 FTE 

Deferred IT System Modernization and Investments (CTAS) -$8,497,000/ -27 FTE 

The revised CTAS FY 2022 estimate includes adjustments to decrease labor and non-labor 

estimates from the FY 2022 original estimate. Due to the extended continuing resolution (CR) in 

FY 2022, the customers within Departmental Offices (DO) are unable to fund key initiatives 

proposed in the FY 2022 Budget, including server replacements and modernization to end user 

hardware and software. Those investments in the Departmental Offices are re-proposed in the 

FY 2023 CTAS estimates. 

Increased Personnel Resources/IT Modernization (ARC Admin/IT) -$3,482,000 / +20 FTE 

ARC Admin - Increased Personnel Resources +2,851,000 / +22 FTE 

Revised FY 2022 estimates includes adjustments for additional resources to meet critical 

workforce demands for classification and staffing services provided to customers. As the hiring 
volumes of customers has recovered from the FY 2017 Federal hiring freeze, this resource level 

will provide the necessary support to alleviate delays for the delivery of critical hiring needs 

within targeted service levels. 

ARC IT - IT Modernization -$6,333,000 / -2 FTE 

In FY 2022, efficiency gains are realized as ARC IT modernizes and moves to cloud and lowcode solutions for applications and services. Additionally, the reduction of custom platforms has 

also allowed for rightsizing of licensing and maintenance contracts resulting in cost avoidance 

for the fiscal year. 

Maintaining Current Levels (MCLs)......................................... +$23,695,000 / +0 FTE 

Pay Annualization (2.7%) +$1,832,000 / +0 FTE: 

Funds are required for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% in 2023) +$9,429,000 / +0 FTE: 

Funds are required for a 4.6% average pay raise in January 2023. 

Non-Pay +$12,434,000 / +0 FTE 

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Program Increases.............................................................. +$24,254,423 / +10 FTE 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (O&M) (TSSP) 

+$1,120,000 / +4 FTE 

The TSSP supports the transition of additional O&M costs from CEA for cybersecurity 

enhancements and capabilities that will be deployed enterprise wide. Since FY 2020, the total 

O&M costs transitioned into TSSP is $16.75 million, including this increase. The following 

initiatives will transition in this fiscal year: 

 CEA High Value Assets Staffing Transition (+$890,000 / +4 FTE) 

 PhishMe Licenses and PhishMe Triage (+$230,000 / +0 FTE) 

Systems Modernization and Program Support (TSSP) +3,386,056 / +3 FTE 

Treasury will increase spending for program support and IT system modernization for 

enhancements across TSSP programs to include: 

 O&M and sustainment costs for applications across the Enterprise Business Solution 

Programs (+$1,368,196) 

 IT systems program and contractor support (+$825,260 / +3 FTE) 

 Cloud adoption and transition for financial reporting applications (+$692,600 / +0 FTE) 

 Enterprise cost for the new Line-of-Business for the Federal Executive Boards program 

support the advancement of the Administration’s objectives and strengthen the Federal 

workforce (+$500,000 / +0 FTE) 

 Management support for enterprise-wide data collections efforts (+$350,000 / +0 FTE) 

Advancing Equity in Treasury Programs (TSSP) +$514,705 / +3 FTE 

To further the priorities and objectives set forth by the Treasury Secretary, the TSSP will support 

efforts across the shared services programs to advancing equity for Federal employees. These 

efforts include the development of new diversity and inclusion curriculum within Treasury’s 
Executive Institute. Resources will also support expanded program support for the Offices of 

Civil Rights and Diversity and Equal Employment Opportunity (EEO). 

IT Systems Modernization (CTAS) +$13,835,662 / +0 FTE 

Departmental Offices (DO) IT Modernization investment will support increased spending for 

critical lifecycle equipment upgrades and enhancements to modernize the DO IT infrastructure 

and IT server replacements. 

DO IT Infrastructure Modernization 

1. End User Equipment Lifecycle – Asset refresh of end-of-life end equipment (i.e., laptops, 

desktops, zero clients, etc.) and migrate to cloud services 

2. Telework Workforce Enhancements – Hardware and software to support efficiency and 

mission achievement in telework paradigm 

3. Video Teleconferencing – Increased software licenses, support, and services for DO web 

conferencing 

4. Managed Remote Access - Transition from government owned and operated to managed 

service remote access for DO user community 

5. Managed Desktop/Virtual Desktop Infrastructure (VDI) - Transition from government owned 

and operated virtual desktop infrastructure to managed service 

DO IT Server Replacement 

In FY 2023, Treasury will replace IT servers that have reached end of life. These servers support 

the majority of IT operations and the daily workload within DO. By FY 2023, over 120 of these 

critical servers will no longer receive vendor support or updates, which put critical IT 

components at risk of failure or breach. Cloud migration assessments for have been conducted 

for these servers and results have helped to identify opportunities to transition to cloud services 

for most servers. Re-capitalization of servers represents most of the costs incurred. 

Cyber Infrastructure (CTAS) +$3,398,000 / +0 FTE 

DO must invest in cyber protections commensurate with the risks incurred in Treasury’s efforts 

to safeguard the financial sector, U.S. economy and in combating cybercrimes. DO investments 

will enhance Treasury’s ability to protect the cyber infrastructure and respond to major cyber 

incidents. Investments will also include Microsoft FedRAMP High Government Community 

Compliance (GCC) licenses, which have been a key component of Treasury’s response to 

SolarWinds. This includes enhanced security controls, monitoring, and threat protection, as well 

as improved data and identity management. These new capabilities are crucial to protect the 

3,000 users within DO from potential ransomware. 

Facilities Infrastructure (CTAS) +$2,000,000 / +0 FTE 

This request also provides funding for a repairs and improvements account within DO. Historic 

office buildings like Treasury’s are expected to have costs near $3 per square foot per annum. 

Based on that benchmark the costs for maintaining buildings of the size of Main Treasury (MT) 

and Freedman’s Bank Building (FBB) Treasury Facilities would be approximately $2M in 

funding annually. Treasury’s current funding level is approximately $450K. 

Program Decreases...............................................................-$10,003,000 / -13 FTE 
Business Transformation Efforts (ARC Admin) -$10,003,000 / -13FTE 

In FY 2023, ARC anticipates realized results from the business transformation related to the 

oneARC initiative in FY 2022. This initiative focused on foundational enhancements to business 

operations. The decrease reflects a $7,555 reduction in initiative spending and estimates 

efficiency gains related to oneARC, to include $2,448 and 13 FTE. 

Legislative Proposals 

The TFF has no legislative proposals. 

Performance Highlights FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Budget Activity Performance Measure Actual Actual Actual Target Target 

Treasury Shared Services 

Programs Average Cost per FTE $1,463.50 $1,719.40 $1,805.70 $1,710.50 $1,710.50 

Treasury Shared Services 

Programs Annual Effective Spend Rate (%) 97 98 98 96 96 

Treasury Shared Services 

Programs Customer Satisfaction (%) 75 90 93 80 80 

Centralized Treasury 

Administrative Services Annual Effective Spend Rate (%) 98 94 98 96 96 

Centralized Treasury 

Administrative Services Customer Satisfaction (%) 75 75 83 80 80 

Administrative Support 

Services Customer Unmodified Audit Opinions (%) 100 100 100 100 100 

Administrative Support 

Services 

Percentage of shared services service level 

agreement performance metrics met or 

exceeded (%) 

89 87 90 94 94 

Administrative Support 

Services 

Customer Satisfaction with ARC Admin 

Services (%) 93 90 90 80 80 

Information Technology 

Services 

Parentage of IT Portfolio (TFF) Software 

and Hardware Currency (%) N/A N/A B 75 85 

Information Technology 

Services 

Percentage of On-Premise Target Service 

Level Agreements Met (%) N/A N/A B 80 80 

Key: N/A – Not Applicable, B -Baseline 

Description of Performance 

The TSSP annual effective spend rate relates to the financial management and oversight of the 

program. It measures how much of the resources collected from customers are being obligated 

for service delivery in the fiscal year. This measure captures the efficient use of resources by the 

service providers. In FY 2021, 98 percent of the funds collected from customers for the shared 

services was obligated which was above the 96 percent target rate set for the fiscal year. The 

target will remain at 96 percent for FY 2022 and FY 2023. 

In FY 2021, the survey results yielded a 93 percent overall customer satisfaction rating which is 

up from 80 percent in the prior year for services provided through the TSSP. Strategic 

partnerships with TSSP governance councils, meeting monthly with Treasury budget directors 

and the use of the TSSP Roadshows provides expanded customer engagement opportunities to 

the various stakeholders to better communicate the expected changes to program budgets and the 

impact to their upcoming service level agreements. This level of transparency has contributed to 

the higher rating. The target for this measure is set at 80 percent for both FY 2022 and 2023. 

The CTAS FY 2021 annual effective spend, and customer satisfaction rates were 98 and 83 

percent respectively. Each measure result was above the set targets. The targets set for the 
annual effective spend rate and customer satisfaction measures are mirrored after the TSSP target 

to maintain consistency in overall financial management of the two shared services providers 

within Departmental Offices. The targets set in both FY 2022 and 2023 is 96 and 80 percent, for 

the annual effective spend rate and customer satisfaction measures respectively. 

In FY 2021, ARC Admin received strong customer satisfaction scores and 18th consecutive 

unmodified audit opinion. Despite missing the target for the percentage of shared services 

service level agreements performance metrics, ARC Admin continues to work with customer 

agencies to understand the changes thereby enabling them to align resources to support the 

demand. The FY 2022 and 2023 targets will remain unchanged. 

In FY 2021, ARC IT established a baseline for software/hardware currency and on-premises 

target service level agreements (SLA) met. The goal of these new measures is to reduce the use 

of End of Life (EOL) technology, which in turn further minimizes technical debt and risk for our 

customers, and measure how well technical teams are performing and closing out the requests 

and incidents. The FY 2022 and 2023 targets reflect operational commitments to customers and 

allows room for improvement. 

This year, TFF is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget.