Financial Stability Oversight 

Council

Congressional Justification 

for Appropriations and 

Annual Performance 

Report and Plan

FY 2018
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Table of Contents

Section I – Budget Request................................................................................................................3

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

B – Summary of the Request............................................................................................................3

1.1 – Resource Detail Table .............................................................................................................3

C – Vision, Priorities, and Context ..................................................................................................3

1.2 – Budget Adjustments Table ......................................................................................................5

D – Budget Increases and Decreases Description............................................................................5

1.3 – Operating Levels Table ...........................................................................................................6

E – Appropriations Language and Explanation of Changes ............................................................6

F – Legislative Proposals .................................................................................................................6

Section II – Annual Performance Plan and Report ........................................................................7

A – Financial Stability Oversight Council .......................................................................................7

2.1.1 – Financial Stability Oversight Council Annual Performance and Report .............................7

B – FDIC Reimbursement................................................................................................................7

2.1.2 – FDIC Reimbursement Annual Performance Plan and Report .............................................7
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Section I – Budget Request

A – Mission Statement

To identify risks to the financial stability of the United States, to promote market discipline, and to 

respond to emerging threats to the stability of the U.S. financial system.

B – Summary of the Request

The Financial Stability Oversight Council (FSOC or Council) is estimating an FY 2018 operating

level of $12.247 million, which is 7.79 percent below its FY 2017 operating level. This request 

includes $7.748 million for the FSOC Secretariat and the Office of the Independent Member with 

Insurance Expertise, and $4.499 million to reimburse the Federal Deposit Insurance Corporation 

(FDIC) for certain expenses as required by law.

1.1 – Resource Detail Table

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in the unobligated balance line. This is 

because the first assessment covering the fiscal year beginning October 1 is actually collected on September 15 of the prior fiscal year. This makes it 

appear as though large amounts of unobligated balances went unused, when in fact very little, if any, of those balances were from under execution. 

C – Vision, Priorities, and Context

The Council is chaired by the Secretary of the Treasury and consists of 10 voting members and five

nonvoting members who serve in an advisory capacity. The Council brings together the expertise 

of the federal financial regulators, an insurance expert appointed by the President, and state 

regulators. 

The Council’s three statutory purposes are:

1) to identify risks to the financial stability of the United States that could arise from the material 

financial distress or failure, or ongoing activities, of large, interconnected bank holding 

companies or nonbank financial companies, or that could arise outside the financial services 

marketplace;

2) to promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in the 

event of failure; and

Dollars in Thousands

Financial Stability Oversight Council

Budgetary Resources

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections 16FTE 16Amt 17FTE 17Amt 18FTE 18Amt ChgFTE ChgAmt pctFTE pctAmt

Assessments $12,535 $10,355 $7,440 ($2,915) NA -28.15%

Interest $23 $26 $24 ($2) NA -7.69%

Recovery of Prior Year Paid Obligations $31 $30 $18 ($12) NA -40.00%

Recovery of Prior Year Unpaid Obligations $632 $870 $510 ($360) NA -41.38%

Restoration of Sequestration Rescission $811 $854 $716 ($138) NA -16.16%

Unobligated Balances from Prior Years $9,569 $9,020 $7,157 ($1,863) NA -20.65%

Total Revenue/Offsetting Collections $23,601 $21,155 $15,865 ($5,290) NA -25.01%

Expenses/Obligations 16FTE 16Amt 17FTE 17Amt 18FTE 18Amt ChgFTE ChgAmt pctFTE pctAmt

FSOC 22 $7,157 23 $8,156 21 $7,748 (2) ($408) -8.70% -5.00%

FDIC 0 $6,571 0 $5,126 0 $4,499 0 ($627) NA -12.23%

Total Expenses/Obligations 22 $13,728 23 $13,282 21 $12,247 (2) ($1,035) -8.70% -7.79%

Sequestration Rescission ($854) ($716) $0 $716

Net Results $9,019 $7,157 $3,618 ($3,539) -49.45%

FY 2016 FY 2017 FY 2017 to FY 2018

Actual Estimated Estimated Change % Change

FY 2018

1) The FSOC and FDIC reimbursements are financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule and interim final 

rule governing the Assessments process: https://www.financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf
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3) to respond to emerging threats to the stability of the U.S. financial system.

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. Over the next year, the Council 

will continue to monitor the financial system for emerging risks and facilitate interagency 

cooperation to identify and analyze emerging threats. The Council will also continue to facilitate 

information sharing and interagency coordination with respect to various regulatory initiatives.

Over the last year, the Council continued to identify and monitor potential risks to U.S. financial 

stability; fulfilled its statutory requirements, including transmission of its sixth annual report to 

Congress; and served as a forum for coordination among member agencies. The Council continues

to evaluate its nonbank financial company determinations and financial market utility designations. 

In FY 2016, the Council rescinded one nonbank financial company determination.

By law, the Council is required to convene no less than quarterly, but the Council has convened on 

a more frequent basis to share information on key financial developments, coordinate regulatory 

implementation, and monitor progress on recommendations from the Council’s annual reports. In 

FY 2016, the Council convened 10 times. The Council will continue to remain focused on 

identifying near-term threats and addressing structural vulnerabilities in the financial system. 

Transparency into Council work has routinely been provided through an annual report to Congress, 

periodic Congressional testimony on Council activities and emerging threats to financial stability, 

and regular communications with the public about Council activities and decisions.

The Council is an executive agency and is not an office or bureau of the Department of the 

Treasury. However, by law, the Council’s expenses (and, indirectly, FDIC reimbursements) are 

considered expenses of the Office of Financial Research (OFR), an office within the Department of 

the Treasury.

FDIC Reimbursement

By law, the Council’s expenses also include reimbursement of certain reasonable implementation 

expenses incurred by the FDIC in implementing Orderly Liquidation Authority. The FDIC must 

periodically submit requests for reimbursement to the Chairperson of the Council, who shall arrange 

for prompt reimbursement to the FDIC. FDIC expenses are for rule writing and resolution planning.
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1.2 – Budget Adjustments Table

D – Budget Increases and Decreases Description

Program Decreases.....................................................................-$1,035,000 / -2 FTE

Personnel -$222,000 / -2 FTE

To align with the Administration’s initiative to improve Government efficiency and effectiveness, 

the FSOC is implementing a staffing streamlining effort to ensure appropriate levels for maximum 

efficiency.

Non-Personnel -$186,000 / 0 FTE

The Council proposes to reduce administrative costs and eliminate previously-planned construction 

and renovation costs.

FDIC Reimbursement -$627,000 / 0 FTE

The FDIC estimates its reimbursable expenses for FY 2018 at $4,499,000.

Financial Stability Oversight Council FTE Amount

FY 2017 Estimated 23 $13,282

Changes to Base:

Total FY 2018 Base 23 $13,282

Program Changes:

Program Decreases (2) ($1,035)

Personeel (2) ($222)

Non-Personeel ($186)

FDIC Reimbursement ($627)

Total FY 2018 Estimated 21 12,247

Dollars in Thousands
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1.3 – Operating Levels Table

Dollars in Thousands

Financial Stability Oversight Council FY 2016 FY 2017 FY 2018

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 2,862 3,027 2,975 

11.3 - Other than full-time permanent 233 235 230 

11.5 - Other personnel compensation 34 35 34 

11.9 - Total personnel compensation 3,129 3,297 3,239 

12.0 - Personnel benefits 824 1,099 935 

Total Personnel and Compensation Benefits $3,953 $4,396 $4,174 

21.0 - Travel and transportation of persons 40 50 65 

23.1 - Rental payments to GSA (10) 0 0 

25.1 - Advisory and assistance services 250 350 395 

25.2 - Other services from non-Federal sources 85 75 80 

25.3 - Other goods and services from Federal sources 1 8,857 7,851 6,951 

26.0 - Supplies and materials 521 515 499 

31.0 - Equipment 32 45 83 

Total Non-Personnel $9,775 $8,886 $8,073 

Subtotal New Budgetary Resources $13,728 $13,282 $12,247 

FTE 22 23 21

1 Includes FDIC reimbursement.

2 Regarding object class 23.1, beginning in FY 2016, rental payments were no longer a direct charge to the Financial Research Fund. 

In FY 2016, there was a refund of prior-year activity, causing there to be an overall negative for the year.

E – Appropriations Language and Explanation of Changes

The FSOC receives no appropriations from Congress.

F – Legislative Proposals

The FSOC has no legislative proposals.
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Section II – Annual Performance Plan and Report

A – Financial Stability Oversight Council

($7,748,000 from Assessments): 

There are no measures specified for managing Council performance at this time. Information on the 

Council is provided on www.treasury.gov, www.fsoc.gov, and member agency websites to provide 

transparency and accountability.

The FY 2018 - 2022 Strategic Plan is currently under development. The Annual Performance Plan 

will be updated in the FY 2019 Budget to reflect the new priorities.

2.1.1 – Financial Stability Oversight Council Annual Performance and Report

B – FDIC Reimbursement

($4,499,000 from Assessments): 

Certain FDIC expenses are treated as expenses of the Council. For additional detail, see above.

2.1.2 – FDIC Reimbursement Annual Performance Plan and Report

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Estimated Estimated

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column2 Column10

Expense/Obligations $5,428 $5,679 $7,660 $6,236 $7,157 $8,156 $7,748

Budget Activity Total $5,428 $5,679 $7,660 $6,236 $7,157 $8,156 $7,748

FTE 16 23 23 22 22 23 21

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Estimated Estimated

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column2 Column3

Expense/Obligations $4,716 $6,327 $11,592 $7,628 $6,571 $5,126 $4,499

Budget Activity Total $4,716 $6,327 $11,592 $7,628 $6,571 $5,126 $4,499