Departmental Offices - S & E 

Program Summary by Budget Activity 

(Dollars in thousands) 

FY 2008 FY 2009 FY 2010 Appropriation Enacted ARRA 1/ Enacted Request $ Change % Change

Salaries and Expenses $248,360 $131,000 $278,870 $302,388 $23,518 8.4%

 Executive Direction $20,749 $0 $21,619 $22,383 $764 3.5%

 Economic Policies and Programs $44,242 $0 $45,910 $44,749 ($1,161) -2.5%

 Financial Policies and Programs $29,465 $1,000 $36,038 $47,580 $11,542 32.0%

 Terrorism and Financial Intelligence $56,775 $0 $62,098 $64,611 $2,512 4.1%

 Treasury-wide Management and Programs $18,505 $130,000 $21,600 $22,779 $1,179 5.5%

 Administration Programs $78,624 $0 $91,604 $100,286 $8,682 9.5%

Subtotal, Departmental Offices - S & E $248,360 $131,000 $278,870 $302,388 $23,518 8.4%

Offsetting Collections - Reimbursables $19,800 $0 $38,642 $33,842 ($4,800) -12.4%

Total Program Operating Level $268,160 $131,000 $317,512 $336,230 $18,718 5.9%

1/ ARRA funding includes $123 Million for IRS and $7 Million for FMS. 

Explanation of Request 

 

The Fiscal Year (FY) 2010 President’s Budget 

Request for the Salaries and Expenses 

appropriation provides new resources to 

develop superior capabilities in Offices of 

Domestic Finance and Tax Policy, as well as 

various management areas within the 

Department of the Treasury. In order to meet 

current and future economic challenges, 

Treasury staff must maintain vast expertise in 

an array of complex finance and government 

fields. The Budget supports this need, 

particularly in the areas of housing finance, 

capital markets, and tax administration. The 

Budget also provides resources for the 

Afghanistan Threat Finance Cell and covers 

administrative expenses associated with the 

tax credit exchange programs authorized in the 

American Recovery and Reinvestment Act of 

2009. 

DO’s top priorities and proposed initiatives 

support each of the Department’s strategic 

goals; Effectively Manage U.S. Government 

Finances; Ensure U.S. and World Economies 

Perform at Full Potential; Prevent Terrorism 

and Promote the Nation’s Security Through 

Strengthened International Financial Systems; 

and Promote Management and Organizational 

Excellence 

Total resources requested to support DO 

activities for FY 2010 are $336,230,000, 

including $302,388,000 from direct 

appropriations and $33,842,000 from 

offsetting collections and reimbursable 

programs. 

Purpose of Program 

 

Departmental Offices, as the headquarters 

bureau for the Department of the Treasury, 

provides leadership in such critical areas as 

economic and financial policy, terrorism and 

financial intelligence, financial crimes, and 

general management. The Secretary of the 

Treasury has the primary role in formulating 

and managing the domestic and international 

tax and financial policies of the Federal 

Government. Through effective management, 

policies, and leadership, the Treasury 

Department develops and implements 

strategies to counter terrorist financing and 

money laundering, promotes the stability of 

the nation's financial markets and ensures the 

government's ability to collect revenue. 

Department of the Treasury - Budget in Brief FY 2010 Page 11
DO FY 2010 Budget Highlights

(Dollars in thousands) 

Appropriation Amount

FY 2009 Enacted 278,870

Changes to Base: 

Maintaining Current Levels (MCLs): $4,913

Across the Board program reduction (1,464)

Non-Pay Inflation Adjustment 1,531

Pay Annualization 1,587

Pay Inflation 3,259

Initiative Annualization: $1,731

DF - Debt Management Office Analytical 307

Support 

GSE Support 464

OGC - General Counsel Support for 338

CFIUS 

OIA - Counterintelligence and Security 622

Capabilities Enhancement 

Subtotal FY 2010 Changes to Base $6,644

Total FY 2010 Base 285,514

Program Changes: 

Program Reinvestment: ($2,110)

International Affairs Reduction (2,110)

Program Increases: $18,984

Domestic Finance Staffing 8,731

Tax Policy Staffing 4,863

Management Staffing 3,000

Recovery Act Program Support 400

Afghanistan Threat Finance Cell and 790

International Dues 

CIO Treasury Foreign Intelligence 1,200

Network (TFIN) 

Subtotal FY 2010 Program Changes $16,874

Total FY 2010 President's Budget Request 302,388

FY 2010 Budget Adjustments 

 

FY 2009 Enacted 

The FY 2009 enacted direct appropriation for 

DO is $278,870,000. 

Maintaining Current Levels (MCLs) 

Adjustments Necessary to Maintain 

Current Levels +$4,913,000 / +0 FTE Funds 

are requested for: FY 2010 cost of the January 

2009 pay increase of $1,587,000; proposed 

January 2010 pay raise of $3,259,000; and 

non-labor related items such as contracts, 

travel, supplies, equipment and GSA rent 

adjustments of $1,531,000. In addition, there 

is an across the board program reduction of 

$1,464,000. 

Initiative Annualization 

DF - Debt Management Office Analytical 

Support +$307,000 / +2 FTE Annualization 

of the FY 2009 Domestic Finance initiative to 

modify the debt management system and 

provide dedicated analytical staff. 

GSE Support +$464,000 / +4 FTE

Annualization of the FY 2009 Domestic 

Finance initiative provided for the executing 

and managing of the Government Sponsored 

Enterprises (GSE) program. The funding is 

used for program personnel and their 

administrative expenses as well as audit and 

consulting services. 

OGC - General Counsel Support for CFIUS 

+$338,000 / +2 FTE Annualization of the FY 

2009 initiative which provided legal support to 

the Office of the Assistant General Counsel 

(OGC) for IA. Additional resources will 

enable IA and OGC to meet the increased 

demand to support clients on the Treasurychaired Committee on Foreign Investment in 

the United States. 

OIA - Counterintelligence and Security 

Capabilities Enhancement +$622,000 / +3 

FTE Annualization of the FY 2009 initiative 

which augmented the Department’s efforts to 

address current and emerging threats that 

affect its national security mission. These 

include: preventing espionage in the 

Department; thwarting adversarial threats to 

our personnel, programs, and facilities; and 

identifying and mitigating threats from 

compromise of Treasury critical programs or 

theft. 

Program Reinvestment 

International Affairs Reduction -$2,110,000 

/ -4 FTE The Department considers its attaché 

program to be a valuable asset for building 

relationships with foreign officials and 

working with local U.S. industry and agency 

representatives to advance U.S. interests, but it 

does recognize that with current economic 

conditions a partial amount of the funding for 

Department of the Treasury - Budget in Brief FY 2010 Page 12
this program must be realigned to other offices 

that are focused on the domestic economic 

situation. The Department has identified funds 

in the attaché program, and will reallocate 

these resources to meet the increased workload 

on the Office of Domestic Finance for the 

initiative described in the program increases 

section below. 

Program Increases 

Domestic Finance Staffing +$8,731,000 / 

+26 FTE In order to meet current and future 

economic challenges, Treasury must maintain 

a vast expertise is complex finance and 

government fields, particularly housing 

finance, small business and capital markets. In 

support of this objective, this initiative will 

fund additional staff in the Office of Domestic 

Finance, including two new Deputy Assistant 

Secretary (DAS) positions: one DAS for 

Housing Finance, Small Business and 

Consumer Issues and one DAS for Capital 

Markets. The two DASs will lead teams 

designed to support the economic research and 

modeling for these critical areas. 

Tax Policy +$4,863,000 / +15 FTE To ensure 

Treasury possesses capabilities sufficient to 

support rigorous analysis and implementation 

of revenue policy, the Budget includes funding 

for an additional 15 tax specialists in 

Treasury’s Office of Tax Policy. These new 

tax specialists will apply tax expertise in of the 

following key areas: (1) the financial crisis; (2) 

the financial stimulus plan; (3) climate change; 

and (4) health care reform. 

Management Staffing +$3,000,000 / +13 

FTE DO has identified a number of staffing 

shortfalls in the areas of Treasury-wide human 

capital, IT and procurement policy. The 

Office of the Chief Information Officer 

(OCIO) needs additional staff to support the 

increasingly sophisticated technology needs of 

Treasury leadership and policy offices. As the 

Department takes on broader and more 

complex financial and fiscal issues, 

policymakers and advisors require more IT 

support and programs for their work, in order 

to effectively meet these needs. The new staff 

will support the implementation of new 

procurement requirements associated with the 

Administration's efforts for increased 

transparency in Federal contracting, as well as 

provide additional support to process large, 

complex IT contracts. In addition, the 

additional HR staff and privacy directives staff 

will ensure that Treasury’s directives, both for 

HR and otherwise, are codified and made 

accessible to Treasury employees. 

Recovery Act Program Support +$400,000 / 

+1 FTE In accordance with sections 1602 and 

1603 of the American Recovery and 

Reinvestment Act of 2009 (Recovery Act), the 

Secretary is implementing two new grant 

programs: (1) Grants to States for Low-Income 

Housing Projects in Lieu of Low-Income 

Housing Tax Credits and (2) Grants for 

Specified Energy Property in Lieu of Tax 

Credits. Funding is requested to continue the 

administration of these programs in FY 2010. 

TFI Afghanistan Threat Finance Cell and 

International Dues +$790,000 / +1 FTE

Resources are requested to provide designated 

Treasury staff for the Afghanistan Threat 

Finance Cell and support annual dues to international anti-money laundering or-ganizations. 

The Afghanistan Threat Finance Cell (ATFC) 

was established in FY 2009 on the model of 

the successful Iraq Threat Finance Cell as a 

joint Treasury, State and Defense Department 

initiative. Treasury requests resources to 

provide one dedicated, full-time staff member 

for this important effort. Treasury leads the 

United States delegation at the Asia-Pacific 

Group and the Financial Action Task Force, 

international bodies dedicated to combating 

money laundering and terrorist financing, and 

streng-thening the financial systems of 

member states. Treasury requests funds to 

support dues payments. 

Department of the Treasury - Budget in Brief FY 2010 Page 13
CIO Treasury Foreign Intelligence Network 

(TFIN) +$1,200,000 / +0 FTE Provide ongoing Operations and Maintenance (O&M) 

support for the TFIN system, including 

program management, O&M managed 

services provider contractor support, 

telecommunications and circuit costs, 

hardware and software maintenance, and 

technology refresh. 

Explanation of Budget Activities 

 

Salaries and Expenses 

 

Executive Direction ($22,383,000 from 

direct appropriations and $1,092,000 from 

reimbursable programs) Provides direction 

and policy formulation to the Department, and 

interacts with Congress and the public on 

Departmental policy matters. 

Economic Policies and Programs 

($44,749,000 from direct appropriations 

and $5,097,000 from reimbursable 

programs) Monitors domestic and 

international economic conditions and collects 

and analyzes financial data, including foreign 

credits and credit guarantees. 

Financial Policies and Programs 

($47,580,000 from direct appropriations 

and $5,225,000 from reimbursable 

programs) Monitors and provides economic 

and financial policy expertise in the areas of 

domestic finance and tax policy. 

Terrorism and Financial Intelligence 

($64,610,000 from direct appropriations 

and $5,637,000 from reimbursable 

programs) Develops and implements 

strategies to counter terrorist financing and 

money laundering. 

Treasury-wide Management and Programs 

($22,779,000 from direct appropriations 

and $4,575,000 from reimbursable 

programs) Provides strategic plans, and 

policy direction in the fields of human 

resources, information technology security, 

and financial administration that include the 

formulation and management of the budget. 

Administration Programs ($100,286,000 

from direct appropriations and $12,216,000 

from reimbursable programs) Provides 

operational support and shared services to all 

offices within DO. Activities include 

accounting, budget, human resources, 

information technology, procurement, 

facilities support and travel services. 

Legislative Proposals 

 

The Budget proposes one new Administrative 

Provisions. The Provision would authorize a 

permanent indefinite authority to establish new 

Treasury fund symbols for the payment of tax 

refunds and related interest by Alcohol and 

Tobacco Tax & Trade Bureau, Customs and 

Border Protection, and the Bureau of Alcohol, 

Tobacco, Firearms and Explosives. 

The proposed Administrative Provision will 

greatly improve the efficiency of the payment 

of various types of tax refunds and related 

interest. 

Department of the Treasury - Budget in Brief FY 2010 Page 14
DO Performance by Budget Activity 

Budget Activity Performance Measure Actual Actual Actual Target 

Met? Target Target

Economic Policies Number of new trade and investment 

and Programs negotiations underway or completed (Oe) 

N/A N/A 14 Baseline 6 2 

Terrorism and Number of countries that are assessed for 

Financial Intelligence compliance with the Financial Action Task 

Force (FATF) 40 + 9 recommendations (Ot)

5 6 12 Yes Discontinued Discontinued 

Treasury-wide Completed investigations of EEO 

Management and complaints within 180 days (%) (Oe) 

Programs 

20 52 56 Yes 50 50 

Treasury-wide Injury and illness rate Treasurywide - 

Management and including DO (Oe) 

Programs 

1 0 1.29 Yes Discontinued Discontinued 

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Customer Satisfaction 

Description of Performance 

 

The Treasury Department is committed to 

participating in the negotiation and 

implementation of international agreements, 

which help to remove trade and investment 

barriers and stimulate domestic and global 

growth. Treasury’s Office of International 

Affairs advises and assists in the formulation 

and execution of U.S. international 

economic and financial policy. In FY 2008, 

the office met or exceeded its targets for all 

of its performance measures. During the 

year, the office modified its measure related 

to trade and investment negotiations to 

broaden its scope and added a new measure 

related to the enactment, implementation 

and enforcement of US trade law and 

international agreements. For FY 2009 and 

FY 2010, it is anticipated that completion of 

new international trade and investment 

agreements will be challenged by 

protectionist sentiment associated with the 

global recession. Commitments by G-20 

nations to resume the World Trade 

Organization’s Doha Round of trade 

negotiations and limit protection are 

extremely favorable, but the performance 

results of FY 2008 are likely to be 

unrepeatable in the current climate. 

Performance targets for FY 2009 and FY 

2010 for both measures have consequently 

been set to reflect these economic 

challenges. 

Departmental Offices are primarily 

responsible for managing Treasury-wide 

management programs and initiatives. For 

FY 2008, DO met or exceeded its 

performance measures related to Equal 

Opportunity Employment and Departmentwide injury and illness rates. During FY 

2008 the Office of the Deputy Assistant 

Secretary for Human Resources / Chief 

Human Capital Officer (DASHR/CHCO) 

began using two performance measures to 

assess how well employee expectations 

align with organization performance. 

DASHR/CHCO also implemented its first 

human capital operating plan to ensure 

steady progress towards the goals laid out in 

the Human Capital Strategic Plan. These 

new initiatives have significantly improved 

insight into human capital programs and 

additional measures are being developed to 

determine the effectiveness of strategies 

articulated in the plan. 

The Department is continuing in its efforts 

to develop and replace performance 

measures for the Offices of International 

Affairs, Economic Policy, Domestic 

Finance, Foreign Asset Control, Intelligence 

and Analysis, and Terrorism Financing and 

Department of the Treasury - Budget in Brief FY 2010 Page 15
Financial Crimes to improve alignment with 

the 2007-2012 Treasury Strategic Plan. In 

FY 2008 the Office of Technical Assistance 

established two new, comprehensive 

performance measures to assess the 

effectiveness of assistance programs for 

client countries. Additional measures of this 

type are currently being considered for other 

policy offices 

Department of the Treasury - Budget in Brief FY 2010 Page 16