Message from the Secretary of the Treasury

Dear Member:

The Fiscal Year (FY) 2017 President’s Budget requests $13.3 billion for Treasury’s operating 

bureaus and $2.3 billion for our International Programs. The proposal identifies investments to 

fairly collect revenue—including a program integrity cap adjustment yielding a net increase of 

$46 billion over the next ten years—and investments that fight terrorism, improve cybersecurity,

and continue strengthening our nation’s long-term economic and fiscal position. 

The request makes strategic investments in the Internal Revenue Service (IRS) to improve 

service to tens of millions of taxpayers and reduce the deficit through more effective tax 

administration. The IRS collects more than 90 percent of federal revenue and interacts with 

virtually every American. We recognize the increased funding for the IRS in FY 2016 and hope 

it reflects a step back towards providing the resources needed to fulfil its critical mission. 

Despite the increase, the IRS remains severely underfunded; its current operating budget is $911 

million lower than it was in FY 2010. These reductions are costing billions of dollars each year 

in lost enforcement revenue, yielding poor customer service for taxpayers and resulting in 

insufficient investment in the cybersecurity programs necessary to protect taxpayer data from 

illicit access. The FY 2017 request begins to restore these funds and allow the IRS to rebuild the 

quality service that American taxpayers deserve.

Treasury’s request also includes funding to combat the Islamic State of Iraq and the Levant 

(ISIL), as well as other international threats, by bolstering our economic sanctions regimes, and 

leveraging intelligence collection and international partnerships. It includes a new centralized 

cybersecurity fund to invest in improved protection for Treasury systems that house taxpayer, 

financial sector and other business, and government data. The request also invests in the 

Community Development Financial Institutions Fund to promote economic development in lowincome and underserved communities.

Treasury’s International Programs request funds general capital increases and replenishments in 

multilateral development banks and continues making progress on reducing our unpaid 

commitments, a top Administration priority. The request also invests in the Office of Technical 

Assistance (OTA) as the first step towards meeting the Administration’s commitment to double 

OTA resources by 2020 and provides investments in the Green Climate Fund to support the 

transition of developing countries to a low-emission and climate resilient development path. 

The FY 2017 Congressional Budget Justification includes the information required for the 

Annual Performance Report. I have validated the accuracy, completeness and reliability of the 

performance data in this report. 

Sincerely,

Jacob J. Lew

U.S. Department of the Treasury

FY 2017 Budget in Brief

Summary of FY 2017 President’s Budget

Executive Summary....................................................................................................................................... 1 

Summary Tables and Charts

FY 2017 President’s Budget by Function ................................................................................................ 1 

FY 2017 President’s Budget by Strategic Goal ....................................................................................... 7 

Fiscal Year Comparison of Full-Time Equivalent Staffing ....................................................................... 8 

Summary of FY 2017 Increases and Decreases..................................................................................... 9 

Appropriated Accounts – Bureau Program Detail

Departmental Offices Salaries and Expenses ............................................................................................. 11

Department-wide Systems and Capital Investments Program..................................................................... 17 

Cybersecurity Enhancement Account.......................................................................................................... 19

Office of Inspector General.......................................................................................................................... 25

Special Inspector General for the Troubled Asset Relief Program............................................................... 31

Treasury Inspector General for Tax Administration ..................................................................................... 35

Community Development Financial Institutions Fund.................................................................................. 41

Financial Crimes Enforcement Network....................................................................................................... 47

Alcohol and Tobacco Tax and Trade Bureau .............................................................................................. 51

Fiscal Service .............................................................................................................................................. 55

Internal Revenue Service ............................................................................................................................ 61

Non-Appropriated Accounts – Bureau Program Detail

Office of Financial Stability .......................................................................................................................... 79 

Office of Financial Research....................................................................................................................... 83 

Financial Stability Oversight Council ... ....................................................................................................... 87 

Bureau of Engraving and Printing................................................................................................................ 89

United States Mint ....................................................................................................................................... 95

Office of the Comptroller of the Currency .................................................................................................... 99

Treasury International Programs

International Programs .............................................................................................................................. 105

Supplemental Information

Summary of FY 2017 Appropriations Language........................................................................................ 109

Mandatory Funding Levels for the FY 2017 President’s Budget—Treasury Chapter and 

Total Treasury Mandatory Funding............................................................................................................ 121

The information presented in the FY 2017 Budget in Brief is accurate and complete as of February 9, 2016. 

Any updated information will be reflected in the budget available on the Treasury Department website, 

Treasury.gov.

Executive Summary - 1

Mission Statement

Maintain a strong economy and create economic and job opportunities by promoting conditions 

that enable economic growth and stability at home and abroad; strengthen national security by 

combating threats and protecting the integrity of the financial system; and manage the U.S. 

government’s finances and resources effectively.

Executive Summary

FY 2017 President’s Budget by Function

Dollars in Thousands

 

FY 2015 FY 2016 FY 2017 Increase/ Percent

Enacted Enacted Request Decrease Change

Management & Financial $1,343,704 $1,404,653 $1,520,463 $115,810 8.2%

Departmental Offices Salaries and Expenses $210,000 $222,500 $217,376 ($5,124) -2.3%

Terrorism and Financial Intelligence (TFI) $112,500 $117,000 $117,000 $0 0.0%

Departmental Offices Salaries and Expenses $322,500 $339,500 $334,376 ($5,124) -1.5%

Cybersecurity Enhancement $0 $0 $109,827 $109,827 100.0%

Department-wide Systems and Capital Investments 

Program $2,725 $5,000 $5,000 $0 0.0%

Office of Inspector General $35,351 $35,416 $37,044 $1,628 4.6%

Treasury IG for Tax Administration $158,210 $167,275 $169,634 $2,359 1.4%

Special Inspector General for TARP $34,234 $40,671 $41,160 $489 1.2%

Community Development Financial Institutions Fund $230,500 $233,523 $245,923 $12,400 5.3%

Financial Crimes Enforcement Network $112,000 $112,979 $115,003 $2,024 1.8%

Alcohol and Tobacco Tax and Trade Bureau $100,000 $106,439 $111,439 $5,000 4.7%

Program Cap Adjustment Included in IRS $0 $0 ($5,000) ($5,000) NA

Net, Alcohol and Tobacco Tax and Trade $100,000 $106,439 $106,439 $0 0.0%

Bureau of the Fiscal Service $348,184 $363,850 $353,057 ($10,793) -3.0%

Treasury Franchise Fund $0 $0 $3,000 $3,000 100.0%

Tax Administration $10,945,000 $11,235,000 $12,280,095 $1,045,095 9.3%

IRS Taxpayer Services $2,156,554 $2,156,554 $2,406,318 $249,764 11.6%

IRS Enforcement $4,860,000 $4,860,000 $5,216,263 $356,263 7.3%

IRS Operations Support $3,638,446 $3,638,446 $4,314,099 $675,653 18.6%

IRS Business Systems Modernization $290,000 $290,000 $343,415 $53,415 18.4%

IRS Administrative Provisions2 $0 $290,000 $0 ($290,000) -100.0%

Less, IRS Cap Adjustment $0 $0 $514,748 $514,748 NA

IRS Total, Excluding Cap Adjustment $10,945,000 $11,235,000 $11,765,347 $530,347 4.7%

Subtotal, Treasury Appropriations Committee 

excluding Cap Adjustment and TEOAF $12,288,704 $12,639,653 $13,285,810 $646,157 5.1%

Treasury Forfeiture Fund ($944,000) ($876,000) ($657,000) $219,000 25.0%

Subtotal, Treasury Appropriations Committee 

including TEOAF $11,344,704 $11,763,653 $12,628,810 $865,157 7.4%

Cap Adjustment $0 $0 $514,748 $514,748 N/A

Total, Treasury Appropriations Committee 

including Cap Adjustment and TEOAF $11,344,704 $11,763,653 $13,143,558 $1,379,905 11.7%

Treasury International Programs $2,454,304 $2,313,470 $2,318,521 $5,051 0.2%

Economic Growth, National Security and Poverty 

Reduction (Multilateral Development Banks) $1,999,804 $1,816,477 $1,802,958 ($13,519) -0.7%

Food Security $30,000 $74,930 $53,000 ($21,930) -29.3%

Environmental Trust Funds $401,000 $398,563 $409,063 $10,500 2.6%

Global Infrastructure Facility $0 $0 $20,000 $20,000 100.0%

Office of Technical Assistance (OTA) $23,500 $23,500 $33,500 $10,000 42.6%

International Monetary Fund1 $0 $0 $0 $0 NA

Total, Treasury Appropriations $13,799,008 $14,077,123 $15,462,079 $1,384,956 9.8%

1/ Allocated as follows: $176.8 million Taxpayer Services, $4.9 million Enforcement, and $108.2 million Operations Support.

FY 2016 to FY 2017

2/ The Consolidated Appropriations Act, 2016 includes IMF quota reform. The reforms will not be funded through Treasury's 150s Account, 

but rather through emergency funding.
Treasury’s mission is to maintain a strong 

economy and create economic and job 

opportunities by promoting conditions that 

enable growth and stability at home and 

abroad; strengthen national security by 

combating threats and protecting the 

integrity of the financial system; and 

manage the federal government’s finances. 

To support this mission, the FY 2017 

President’s Budget requests $13.3 billion in 

discretionary appropriations for Treasury’s 

operating accounts. The Budget also 

proposes a multi-year program integrity cap 

adjustment, including $515 million in 

FY 2017, for critical IRS tax enforcement 

and compliance functions estimated to 

reduce the deficit by $46 billion over the 10-

year budget window. In addition, the 

Budget proposes $2.3 billion for Treasury’s 

International Assistance programs to 

promote our national security, open new 

markets for U.S. exporters, drive progress 

on sustainable development, and address key 

global challenges such as food security and 

the environment. 

Funding Highlights

The President’s Fiscal Year (FY) 2017 Budget provides $13.3 billion for Treasury’s operating 

accounts and $2.3 billion for Treasury’s international assistance programs in discretionary 

funding. This includes: 

• Helping developing nations reduce carbon pollution, strengthen climate resilience, and pursue 

smart and sustainable long-term economic growth through a $250 million contribution to the 

Green Climate Fund as part of a combined Treasury Department and State Department 

investment of $750 million. 

• Investing $11.8 billion in base discretionary resources for the Internal Revenue Service (IRS), 

an increase of $530 million (4.7 percent) from FY 2016, to fairly enforce the tax code and 

improve taxpayer services, including by developing and enhancing online tools for taxpayers. 

• Enhancing existing security systems on its internal Department networks and public websites, 

and supporting public-private cybersecurity coordination with a new $110 million Departmentwide Cybersecurity Enhancement Account. 

• Funding the Office of Terrorism and Financial Intelligence with $117 million to curb terrorist 

financing, including ISIL financing, and to implement sanctions targeting Iran, North Korea, 

Syria, and more, as well as $115 million for the Financial Crimes Enforcement Network. 

• Promoting economic development in low-income and underserved communities through a $12 

million increase (5.3 percent) from FY 2016 for the Community Development Financial 

Institutions Fund for a total of $246 million. 

Reforms

• The Budget proposes a multi-year program integrity cap adjustment for tax enforcement 

activities, including $515 million in FY 2017 to reduce the deficit and narrow the tax gap, 

yielding net taxpayer savings of $46 billion over the next 10 years. 

• It also proposes legislation authorizing and funding new programs to facilitate private 

investment to renew our Nation’s infrastructure, invest in small business job creation, and 

partner with private industry and local governments to promote stable income and sustainable 

savings practices for working families.

Department of the Treasury - Budget in Brief 2
Encouraging International Economic 

Growth and Stability

The Treasury Department’s $2.3 billion 

FY 2017 International Assistance programs 

budget offers a cost effective way to provide 

U.S. leadership in international 

development, advance national security, and 

expand export markets for American 

businesses by promoting international 

financial stability and supporting key global 

initiatives such as reducing poverty, 

improving food security, investing in 

infrastructure, and addressing climate

change. The Budget fully funds annual 

payments to the multilateral development 

banks to maintain U.S. shareholding 

positions and to provide a source of low-cost 

loans and grants for the world’s poorest 

countries. Additionally, the Budget includes 

$20 million for the World Bank Global 

Infrastructure Facility, a fund that will 

catalyze private investment in public 

infrastructure projects. The Budget also 

includes a significant increase for Treasury’s 

Office of Technical Assistance (OTA), as 

the first step toward meeting the 

Administration’s commitment at the 

Financing for Development conference in 

July 2015 to double OTA resources by 2020 

as part of the U.S. effort to significantly 

increase funding for domestic resource 

mobilization. 

The Budget includes $250 million toward 

the U.S. pledge to the Green Climate Fund, 

providing a total of $750 million when 

combined with $500 million provided 

through the Department of State. The 

request will support climate finance for 

developing nations, especially the poorest 

and most vulnerable, as they strengthen 

climate resilience, invest in clean energy, 

and implement their commitments to reduce 

carbon pollution on a pathway towards 

sustainable economic growth and 

development. The Budget also includes 

$137 million for the annual replenishment 

commitment to the Global Environment 

Facility (GEF) and $13 million to help 

Central American countries plus the 

Dominican Republic purchase catastrophe 

risk insurance and enhance disaster risk 

management capacity through the CCRIF

Segregated Portfolio Company (formerly 

known as the Caribbean Catastrophe Risk 

Insurance Facility).

In addition Budget includes $53 million for 

investments to support food security. By 

harnessing the power of public-private 

partnerships and encouraging innovative 

financing mechanisms, donors have 

committed to funding agricultural 

investment plans to improve nutritional 

outcomes in poor countries, with the goal of 

eliminating world hunger. 

Fairly Enforcing the Tax Code 

In FY 2016, IRS funding remains $911 

million lower than its FY 2010 level despite 

an increasing workload resulting in part 

from new legislative mandates. The 

FY 2017 Budget provides the IRS with 

$11.8 billion in base discretionary resources,

an increase of $530 million (4.7 percent) 

from FY 2016, restoring the resource levels 

necessary to maintain the integrity of the tax 

system, fairly enforce the tax code, and 

provide adequate levels of taxpayer services. 

With these investments, the IRS will 

increase staffing for traditional taxpayer 

services, bolster defenses against stolen 

identify refund fraud, and provide assistance 

to taxpayers who call the IRS for assistance. 

In addition, the Budget invests in new IT 

architecture that will enable the IRS to 

modernize and secure its online services and 

provides taxpayers with an experience 

comparable to what they have come to 

expect from financial institutions. 

Department of the Treasury - Budget in Brief 3
Additionally, the Budget includes a $515 

million FY 2017 cap adjustment to support 

program integrity efforts aimed at restoring 

enforcement of current tax laws to 

acceptable levels, investigating transnational 

organized crime, pursuing abusive tax 

schemes, and enforcing the new Foreign 

Account Tax Compliance Act (FATCA). 

The targeted investments funded from the 

cap adjustment in FY 2017 are expected to 

generate nearly $3 billion in annual revenue 

once fully operationalized in FY 2019, 

returning roughly $6 to the government for 

every dollar invested for these initiatives.

Improving the Cybersecurity of 

Treasury’s Networks and Data

The Budget proposes a new $110 million 

Department-wide Cybersecurity 

Enhancement Account to more strategically 

focus Treasury’s cybersecurity efforts and 

avoid fragmentation of IT management 

across bureaus that leads to cost 

inefficiencies and limits Treasury’s ability to 

nimbly respond in the event of a 

cyberattack. The IRS is currently partnering 

with the U.S. Digital Service to bolster 

electronic authentication procedures for 

access to all IRS digital services, and in 

FY 2017 Treasury will expand on this effort 

by deploying a new Digital Infrastructure 

Security Team to enhance existing security 

systems on its internal networks and public 

websites, thereby safeguarding the data on 

those systems department-wide. 

Combating ISIL and Other International 

Threats

Treasury’s Office of Terrorism and 

Financial Intelligence (TFI) is responsible 

for leading the policy, enforcement, 

regulatory, and intelligence functions of 

Treasury aimed at identifying and disrupting 

financial support to international terrorist 

organizations, proliferators of weapons of 

mass destruction, narcotics traffickers, and 

other illicit actors. This includes efforts to 

cut off ISIL from the international financial 

system and to combat the threats we face 

from Iran and North Korea, among others. 

The Budget invests $117 million to support 

TFI in the Treasury’s efforts to combat 

money laundering and terrorist financing, 

implement sanctions programs, and manage 

Treasury’s intelligence and other functions 

in support of U.S. national security policies 

and interests and law enforcement. 

The Budget also provides $115 million for 

the Financial Crimes Enforcement Network 

(FinCEN) to support Treasury’s efforts to 

safeguard the financial system from illicit 

use, combat money laundering, and promote 

national security. FinCEN’s data analytics 

and unique authorities under the Bank 

Secrecy Act are important tools in the U.S. 

effort to combat ISIL and other threats to 

national security. 

Empowering Community Development 

and Economic Growth 

The Budget includes $246 million for the 

Community Development Financial 

Institutions (CDFI) Fund, a $12 million 

increase (5.3 percent) from FY 2016, to 

promote economic development investments 

in low-income and underserved 

communities. The request provides funding 

for the CDFI Program, the Healthy Food 

Financing Initiative, the Native American 

CDFI Assistance Program, and the Bank 

Enterprise Award Program. 

The 2017 Budget also provides funding for a 

new CDFI small dollar loan program to

support broader access to safe and 

affordable financial products and provide an 

alternative to predatory lending. 

The Budget also extends the CDFI Bond 

Guarantee program through FY 2017, 

providing up to $1 billion of long-term 

capital to CDFIs that support lending in 

Department of the Treasury - Budget in Brief 4
underserved communities. The CDFI Bond 

Guarantee program will continue to operate 

with no taxpayer funded subsidy. 

New Mandatory Programs 

The Budget includes a series of mandatory 

proposals to facilitate private investment to 

renew our Nation’s infrastructure, invest in 

small business job creation, and partner with 

private industry and local governments to 

promote stable income and sustainable 

savings practices for working families.

Allotment for Puerto Rico EITC Payments

The Budget proposes a $600 million annual 

allotment, indexed to inflation, to create a 

refundable locally-administered Earned 

Income Tax Credit (EITC) for residents of 

Puerto Rico. Unlike Americans living in the 

50 states and the District of Columbia, 

residents of Puerto Rico are not eligible for 

an EITC. Given Puerto Rico’s low labor 

force participation rate, the existence of an 

EITC should increase employment in Puerto 

Rico’s formal sector by providing higher 

incomes to workers who file taxes. This 

added incentive for participation in Puerto 

Rico’s formal economy should also increase 

Puerto Rico’s tax compliance and tax 

revenues.

Investing in Infrastructure

The Budget establishes a new Financing 

America’s Infrastructure Renewal (FAIR) 

program within Treasury that would provide 

direct loans to U.S. infrastructure projects 

developed through public-private 

partnerships. Eligible projects under the 

program will encompass the transportation, 

water, energy, and broadband sectors, as 

well as certain social infrastructure, such as 

educational facilities, and must meet all 

applicable environmental and labor 

standards. The program is estimated to 

provide $15 billion in direct loans over 10 

years at no cost to taxpayers. 

Supporting Small Businesses 

The Budget includes a new authorization of 

$1.5 billion for the State Small Business 

Credit Initiative (SSBCI) to build on the 

momentum of the program by strengthening 

the federal government's relationships with 

state economic development agencies, and 

providing capital to America's diverse 

community of entrepreneurs. Since it was 

first enacted in 2010, SSBCI has supported 

over 12,400 private sector loans or 

investments in small businesses, and helped 

create or retain over 140,000 jobs as 

reported by recipient small businesses. The 

additional $1.5 billion would be awarded in 

two allocations: $1 billion awarded on a 

competitive basis to states best able to target 

local market needs, promote inclusion, 

attract private capital for start-up and scaleup businesses, strengthen regional 

entrepreneurial ecosystems, and evaluate 

results; and $500 million awarded by a 

formula based on economic factors such as 

job losses and the pace of economic 

recovery.

Encouraging Projects that Pay for Success 

The Budget includes a $300 million onetime mandatory appropriation for a new Pay 

for Success (PFS) program administered by 

Treasury. This program will support the 

growing number of state and local 

governments seeking to establish projects 

that use PFS financing. These projects 

leverage private investment to provide 

preventive social services that measurably 

`improve outcomes for families and 

communities while generating value to 

the government, including savings. The PFS 

Incentive Fund will help to strengthen the 

ability of state and local governments to 

achieve measurable impact for people and 

communities. In addition, by providing 

centralized support and expertise for PFS at 

Treasury, the Incentive Fund will encourage 

the evolution of this nascent field into a 

Department of the Treasury - Budget in Brief 5
more robust and sustainable public and 

private market.

Financial Innovation for Working 

Families Fund

The Budget includes a $100 million 

mandatory fund for Treasury to encourage 

the development of innovative private-sector 

financial products and services that would 

help low- to moderate-income workers build 

up “rainy day” reserves. The reserves would 

provide these workers and their families 

with a buffer against shocks to income and 

spending needs. 

Department of the Treasury - Budget in Brief 6
FY 2017 President's Budget by Strategic Goal 

Dollars in Thousands

Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $

Management & Financial $ 492,016 $ 27,676 $ 86,277 $ 20,667 $ 619,258 $ 279,461 $ 254,171 $ 57,449 $ 68,741 $ 6,537 $ 1,520,463 $ 391,790 

Departmental Offices Salaries and Expenses 68,530 14,878 86,277 20,667 46,347 13,561 115,573 47,249 17,649 6,537 334,376 102,892 Cybersecurity Enhancement 62,084 1,651 46,092 109,827 - Department-wide Systems and Capital Investments Program 5,000 5,000 - Office of Inspector General 15,100 1,800 21,944 8,700 37,044 10,500 Treasury Inspector General for Tax Administration 169,634 1,500 169,634 1,500 Special Inspector General for TARP 41,160 41,160 - Community Development Financial Institutions Fund 245,923 245,923 - Financial Crimes Enforcement Network 115,003 1,500 115,003 1,500 Alcohol and Tobacco Tax and Trade Bureau 52,879 3,318 53,560 3,594 106,439 6,912 Bureau of the Fiscal Service 83,524 9,480 269,533 259,006 353,057 268,486 Treasury Franchise Fund 3,000 3,000 - 

Tax Administration $ - $ - $ - $ - $ 12,280,095 $ 140,686 $ - $ - $ - $ - $ 12,280,095 $ 140,686 

IRS Taxpayer Services 2,406,318 36,465 2,406,318 36,465 IRS Enforcement 5,216,263 47,222 5,216,263 47,222 IRS Operations Support 4,314,099 56,999 4,314,099 56,999 Business Systems Modernization 343,415 343,415 - 

Total, Treasury Appropriations Committee $ 492,016 $ 27,676 $ 86,277 $ 20,667 $ 12,899,353 $ 420,147 $ 254,171 $ 57,449 $ 68,741 $ 6,537 $ 13,800,558 $ 532,476 

Treasury International Programs 2,318,521 2,318,521 - 

Total, Appropriated Level 492,016 27,676 2,404,798 20,667 12,899,353 420,147 254,171 57,449 68,741 6,537 16,119,079 532,476 Non-Appropriated Bureaus $ 147,162 $ 5,059,334 $ - $ - $ - $ - $ 3,000 $ 21,963 $ - $ - $ 150,162 $ 5,081,297 

Office of Financial Stability (Administrative Account) 127,430 127,430 - Small Business Lending Fund Program (Administrative) 13,405 13,405 - State Small Business Credit Initiative (Administrative) 6,327 6,327 - Terrorism Risk Insurance (Administrative) 3,000 3,000 - Financial Stability Oversight Council 18,019 - 18,019 Office of Financial Research 104,770 - 104,770 Bureau of Engraving and Printing 846,335 - 846,335 United States Mint 2,956,207 - 2,956,207 Office of the Comptroller of the Currency 1,134,003 21,963 - 1,155,966 

Subtotal, Direct $ $ 639,178 $ 2,404,798 $ 12,899,353 $ 257,171 $ 68,741 $ 16,269,241 Subtotal, Reimbursable $ $ 5,087,010 $ 20,667 $ 420,147 $ 79,412 $ 6,537 $ 5,613,773 Total, Treasury Level $ 5,726,188 $ 2,425,465 $ 13,319,500 $ 336,583 $ 75,278 $ 21,883,014 1/ Total does not include the proposed $657 million Forfeiture Fund permanent cancellation. 

Total Treasury Goal/Objective

Promote domestic economic 

growth and stability while 

continuing reforms of the 

f nancial system i

Enhance U.S. competitiveness 

and job creation, and promote international financial stability 

and more balanced global 

growth

Fairly and effectively reform 

and modernize federal 

financial management, 

accounting, and tax systems

Safeguard the financial 

system and use financial 

measures to counter national 

security threats

Create a 21st-century 

approach to government by 

improving efficiency, 

effectiveness and customer 

interaction

Department of the Treasury - Budget in Brief 7
Dollars in Thousands

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing (Direct and Reimbursable)

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

Departmental Offices Salaries and Expenses 771 197 968 872 197 1,069 1,290 166 1,456Terrorism and Financial Intelligence 356 29 385 377 29 406 0 0 0Cybersecurity Enhancement 0 0 0 0 0 0 86 0 86Office of Inspector General 151 10 161 194 19 213 194 19 213Treasury Inspector General for Tax Administration 756 2 758 859 2 861 859 2 861Special Inspector General for TARP 150 0 150 192 0 192 192 0 192Community Development Financial Institutions Fund 75 0 75 79 0 79 87 0 87Financial Crimes Enforcement Netw ork 275 1 276 343 1 344 343 1 344Alcohol and Tobacco Tax and Trade Bureau 456 10 466 494 10 504 529 10 539Bureau of the Fiscal Service 1,753 243 1,996 2,042 245 2,287 1,912 240 2,152Internal Revenue Service 80,180 612 80,792 82,462 643 83,105 86,347 675 87,022Subtotal, Treasury Appropriated Level 84,923 1,104 86,027 87,914 1,146 89,060 91,839 1,113 92,952Office of Financial Stability (Administrative Account) 74 0 74 72 0 72 64 0 64Small Business Lending Fund Program 14 0 14 19 0 19 19 0 19State Small Business Credit Initiative 9 0 9 9 0 9 17 0 17Office of Financial Research 194 0 194 230 0 230 255 0 255Financial Stability Oversight Council 22 0 22 34 0 34 36 0 36Treasury Franchise Fund 0 1,545 1,545 0 1,785 1,785 0 1,888 1,888Bureau of Engraving and Printing 0 1,800 1,800 0 1,924 1,924 0 1,924 1,924United States Mint 0 1,651 1,651 0 1,874 1,874 0 1,874 1,874Office of the Comptroller of the Currency 0 3,805 3,805 0 3,955 3,955 0 3,955 3,955Pay for Success 0 0 0 0 0 0 7 0 7Terrorism Insurance Program 4 0 4 10 0 10 10 0 10Financing America's Infrastucture Renew al 0 0 0 0 0 0 11 0 11Financial Innovation For Working Families Fund 0 0 0 0 0 0 8 0 8

Allotment For Puerto Rico EITC Payments 0 0 0 0 0 0 2 0 2Total 85,240 9,905 95,145 88,288 10,684 98,972 92,268 10,754 103,022funded from the Federal Highw ay Transportation Authority Account.2/ IRS FY 2015 Direct FTE include 287 FTE funded through a transfer from Health and Human Services for the Affordable Care Act. IRS FY 2015-2017 Direct FTE include 7 FTE 1/ A portion of Fiscal Service's Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt Collection Improvement Act (DCIA) of 1996.

2015 Actual 2016 Enacted 2017 President's Budget

Department of the Treasury - Budget in Brief 8
DO Cyber DSCIP OIG TIGTA SIGTARP CDFI FinCEN TTB FS TFF IRS Subtotal TEOAF Total

FY 2016 Enacted $ 339,500 $ - $ 5,000 $ 35,416 $ 167,275 $ 40,671 $ 233,523 $ 112,979 $ 106,439 $ 363,850 $ - $ 11,235,000 $ 12,639,653 $ (876,000) $ 11,763,653 

Adjustment to Request (10,050.00) 3,050.00 - - - - - - - - - - (7,000.00) - (7,000.00Maintaing Current Levels (MCLs) 5,312.00 - - 508.00 2,376.00 588.00 412.00 1,824.00 1,562.00 6,032.00 - 170,348.00 188,962.00 - 188,962.0 Non-Recurring Costs (1,050.00) - (5,000.00) - - - (337.00) - - - - - (6,387.00) - (6,387.00Efficiency Savings (1,430.00) - - - (17.00) (99.00) - (1,300.00) - (1,935.00) - (3,766.00) (8,547.00) - (8,547.00Other Adjustments - - - - - - - - (1,562.00) - - - (1,562.00) - (1,562.00

Adjustments to Base $ (7,218) $ 3,050 $ (5,000) $ 508 $ 2,359 $ 489 $ 75 $ 524 $ - $ 4,097 $ - $ 166,582 $ 165,466 $ - $ 165,466 FY 2017 Base $ 332,282 $ 3,050 $ - $ 35,924 $ 169,634 $ 41,160 $ 233,598 $ 113,503 $ 106,439 $ 367,947 $ - $ 11,401,582 $ 12,805,119 $ (876,000) $ 11,929,119 

Program Decreases - - - - - - - - - (14,890.00) - - (14,890.00) - (14,890.00Program Increases 2,094.00 106,777.00 5,000.00 1,120.00 - - 12,325.00 1,500.00 - 3,000.00 363,765.00 495,581.00 - 495,581.0 Program Integrity Cap Adjustment - - - - - - - - - - - 514,748.00 514,748.00 - 514,748.0 

Subtotal, Program Changes $ 2,094 $ 106,777 $ 5,000 $ 1,120 $ - $ - $ 12,325 $ 1,500 $ - $ (14,890) $ 3,000 $ 878,513 $ 995,439 $ - $ 995,439 Change to the Forfeiture Fund Cancellations/Rescission - - - - - - - - - - - - - 219,000.00 219,000.0 FY 2017 President's Budget $ 334,376 $ 109,827 $ 5,000 $ 37,044 $ 169,634 $ 41,160 $ 245,923 $ 115,003 $ 106,439 $ 353,057 $ 3,000 $ 12,280,095 $ 13,800,558 $ (657,000) $ 13,143,558 

Summary of FY 2017 Increases and Decreases

Dollars in Thousands

Department of the Treasury - Budget in Brief 9
Department of the Treasury - Budget in Brief 10
Departmental Offices Salaries and Expenses

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Enacted Enacted Request 2/ $ Change % Change

DO S&E

 Executive Direction $36,002 $37,943 $38,240 $297 0.78%

 International Affairs and Economic Policy $56,266 $58,520 $59,467 $947 1.62%

 Domestic Finance and Tax Policy $78,589 $84,591 $76,304 ($8,287) -9.80%

 Treasury-wide Management and Programs $39,143 $41,446 $43,365 $1,919 4.63%

 Terrorism and Financial Intelligence $0 $0 $117,000 $117,000 NA

TFI

 Terrorism and Financial Intelligence 1/ $112,500 $117,000 $0 ($117,000) -100.00%

Subtotal, Departmental Offices - S & E $322,500 $339,500 $334,376 ($5,124) -1.51%

DO S&E – Reimbursables 1/ $130,032 $123,026 $102,892 ($20,134) -16.37%

TFI Reimbursables $18,442 $6,966 $0 ($6,966) -100.00%

Total Program Operating Level $470,974 $469,492 $437,268 ($32,224) -6.86%

DO S&E - Direct FTE 781 872 1,290 418 47.94%

TFI - Direct FTE 377 377 0 (377) -100.00%

DO S&E - Reimbursable FTE 184 197 166 (31) -15.74%

TFI - Reimbursable FTE 39 29 0 (29) -100.00%

Total FTE 1,381 1,475 1,456 (19) -1.29%

1/ In FY 2016, the Office of Terrorism and Financial Intelligence (TFI) was funded through a separate 

appropriation of $117.0 million, which includes $27.1 million for administrative support.

2/ The FY 2017 Budget maintains TFI at $117.0 million and includes TFI activities in the DO S&E appropriation, 

where it has been each year except FY 2015 and FY 2016.

3/ The Budget also proposes to transfer $7.0 million from the Gulf Coast Restoration Trust Fund for DO’s 

administration and oversight responsibilities for this program. This funding is not included above.

 

Summary 

Departmental Offices (DO) is the headquarters 

bureau for the Department of the Treasury. It 

provides leadership in economic and financial 

policy, financial intelligence and enforcement, 

and general management. Treasury utilizes 

effective management, policies, and leadership 

to protect our national security through 

targeted financial actions, to promote the 

stability of the nation’s financial markets, and 

to ensure the Government’s ability to collect 

revenue and fund its operations. The

Department’s strategic plan guides program 

and budget decisions for DO. 

The FY 2017 Budget request supports DO’s 

leading role in accomplishing the Treasury 

strategic goals:

• Promote domestic economic growth and 

stability while continuing to reform the 

financial system;

• Enhance U.S. competitiveness and job 

creation, and promote international 

financial stability and more balanced 

global growth; 

• Fairly and effectively reform and 

modernize Federal financial management, 

accounting, and tax systems;

Department of the Treasury - Budget in Brief 11
• Safeguard the financial system and use 

financial measures to counter national 

security threats; and 

• Create a 21st-century approach to

government by improving efficiency, 

effectiveness and customer interaction. 

DO FY 2017 Budget Highlights

Dollars in Thousands

Departmental Offices - S & E FTE Amount

FY 2016 Enacted 1,249 $339,500

DO S&E 872 $222,500

TFI 377 $117,000

Changes to Base:

Adjustment to Request (22) ($10,050)

Fund RESTORE Act Administrative 

Expenses from Trust Fund (14) ($7,000)

DO Cybersecurity Enhancements (2) ($1,050)

Digital Infrastructure Security Team (6) ($2,000)

Maintaining Current Levels (MCLs): - $5,312

Pay-Raise - $2,316

Pay Annualization - $682

Non-Pay - $2,314

Non-Recurring Costs: - ($1,050)

Kline-Miller Amendment - ($1,050)

Efficiency Savings: - ($1,430)

TFI Contractual Support - ($1,325)

Virtualization of the Foreign Credit 

Reporting System - ($105)

Other Adjustments 60 -

Technical FTE Adjustment 60 -

Subtotal Changes to Base 38 ($7,218)

Total FY 2017 Base 1,287 $332,282

Program Changes:

Program Decreases: - -

Program Increases: 3 $2,094

Rationalization of the Tax Code - $392

Corporate Bond Yield Curve 1 $202

Data and Risk Analysis 2 $1,500

Total FY 2017 Request 1,290 $334,376

FY 2017 Budget Adjustments 

Adjustment to Request

Fund RESTORE Act Administrative 

Expenses from Trust Fund -$7,000,000 / 

 -14 FTE 

For FY 2017, the Department proposes 

legislative language to allow Treasury to draw 

$7,000,000 from the Gulf Coast Restoration 

Trust Fund (GCRTF) for management of the 

fund, including administering the civil and 

administrative penalties arising from the Deep 

Water Horizon oil spill, supporting 

environmental and economic restoration of the 

Gulf Coast region, as well as managing grants, 

compliance, and audit programs. 

DO Cybersecurity Enhancements -$1,050,000 

/ -2 FTE

In the FY 2016 Consolidated Appropriations 

Act, $1,050,000 and two FTE were provided 

for Security Enhancements to Classified 

Networks and expansion of Departmental 

Offices’ (DO) Wireless Intrusion Prevention 

System. For FY 2017, DO proposes to fund 

this request through the new appropriation 

account, “Cybersecurity Enhancement 

Account.” 

Digital Infrastructure Security Team -

$2,000,000 / -6 FTE

In the FY 2016 Consolidated Appropriations 

Act, $2,000,000 and six FTE were provided 

for the Digital Infrastructure Security Team. 

For FY 2017, DO proposes to fund this request 

through the new appropriation account, 

“Cybersecurity Enhancement Account.” 

Maintaining Current Levels (MCLs)

Pay-Raise +$2,316,000 / +0 FTE 

Funds are requested for the proposed January 

2017 pay-raise. 

Pay Annualization +$682,000 / +0 FTE 

Funds are requested for annualization of the 

January 2016 pay-raise.

Non-Pay +$2,314,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Non-Recurring Costs

Kline-Miller Amendment -$1,050,000 / 

+0 FTE 

In the FY 2016 Consolidated Appropriations 

Act, $3,000,000 and six FTE were provided to 

support Treasury’s responsibilities under the 

Kline-Miller Amendment (previously referred 

to in the FY 2016 budget request as 

Multiemployer Pension Reform Act) of the 

FY 2015 Omnibus Bill. For FY 2017, 

Department of the Treasury - Budget in Brief 12
DO would reduce the contractual support to 

this program, which is for a surge in program 

applications. 

Efficiency Savings 

TFI Contractual Support -$1,325,000 / 

+0 FTE 

DO will achieve cost savings and efficiencies 

in TFI contract services through more efficient 

oversight of all TFI contracts, consolidating 

contracts where appropriate, and partnering 

with other agencies and DO components to 

leverage common technology or administrative 

support needs. 

Virtualization of the Foreign Credit 

Reporting System -$105,000 / +0 FTE 

DO plans to virtualize the Federal Credit 

Reporting System (FCRS) in FY 2016, at the 

end of the current server’s lifecycle. FCRS 

provides for the input, retrieval, and analysis 

of foreign credit and related data. 

Virtualization will eliminate data center 

hosting charges and reduce system operations 

and maintenance costs as well.

Other Adjustments

Technical FTE Adjustment +$0 / +60 FTE 

An estimated 60 reimbursable FTE, supporting 

TFI) in FY 2016, will be converted to direct 

FTE in FY 2017. The mission for the 

converted FTE remains the same--full 

administrative support of the TFI program. 

Program Increases

Rationalization of the Tax Code +$392,000 / 

+0 FTE 

The exponential growth, availability, and 

variety of data from multiple sources have 

rapidly changed expectations regarding the 

Office of Tax Policy’s analytical capabilities. 

To continue meeting the analytical requests of

the Secretary and the Administration, the

Office of Tax Policy must upgrade the existing 

computing platform. The current platform is 

at risk due to lack of commercially available 

resources. Therefore, the office must migrate

to a more current operating system. The 

FY 2017 request of $392,000 will provide the 

remaining resources necessary to upgrade the 

existing computing platform. 

Corporate Bond Yield Curve +$202,000 / 

+1 FTE 

Since 2006, the Office of Economic Policy has 

been producing the corporate bond yield 

curve, which single-employer defined-benefit 

pension plans are required by law to use to 

compute the present value of their current 

liabilities and lump sum payments. In 2014, 

the office began producing the Treasury 

constant maturity (TCM) curve. The TCM 

curve is used by several federal agencies to 

evaluate their pension liabilities and military 

disability payments, which amount to more 

than $6 trillion and are the second largest 

liability on the U.S. Balance Sheet. 

Production of both sets of data is a highly 

technical job that requires expertise in 

financial markets and the complexity of bond 

markets. Currently, this responsibility falls to 

one economist. The Office of Economic 

Policy requests one additional economist to 

ensure the continuity of this work, alleviate 

pressure on existing staff, and provide 

Economic Policy with additional flexibility to 

engage in forward-looking research and 

analysis.

Data and Risk Analysis +$1,500,000 / 

+2 FTE 

To increase data and risk analysis across DO, 

the following are requested in FY 2017: 

• $169,000 and one FTE in the Office of 

Risk Management (ORM). ORM was 

created with a mission to exercise 

leadership across a broad range of crossagency risk management efforts. 

• $237,000 and one FTE to establish a 

Digital Accountability and Transparency 

Act (DATA Act) Program Management 

Office (PMO) within the Office of the 

Department of the Treasury - Budget in Brief 13
Deputy Chief Financial Officer to oversee 

and coordinate Treasury’s DATA Act 

implementation. The Departmental 

DATA Act PMO will coordinate, manage, 

and improve upon Treasury’s data 

transparency and standardization across 

financial management, procurement, 

grants, and loans as they relate to DATA 

Act requirements. The PMO would 

support expanded data analytics, 

consolidated management reporting, and 

potentially folding in current financial 

reporting functions from a single data 

repository by managing technical 

contractor support and implementing 

system enhancements within the scope of 

the DATA Act with its stakeholders. 

• $180,000 for the Office of the 

Procurement Executive to establish a

contract for Fed Data analytics. Use of 

FedDataCheck services increases the 

accuracy of the Department's procurement 

spending data in support of benchmarking 

and provides procurement spending data 

reporting in support of strategic sourcing 

opportunities. 

• $350,000 to enhance DO-wide eDiscovery 

capabilities, primarily for the Office of 

General Counsel. This funding will 

provide capability to more expeditiously 

and accurately identify, collect, process, 

review, analyze, redact (as appropriate), 

and produce emails and other electronic 

records in connection with litigation, 

Freedom of Information Act requests, and 

similar matters.

• $564,000 for the Office of International 

Affairs to develop enhanced capability for 

the interagency Committee on Foreign 

Investment in the United States (CFIUS), 

which Treasury chairs, to receive, track, 

and analyze data, including CFIUS case 

data, third party industry and merger and 

acquisitions data, and other data relevant 

to national security reviews conducted by 

CFIUS.

Explanation of Budget Activities

Executive Direction ($38,240,000 from direct 

appropriations, $12,177,000 from 

reimbursable resources) 

Provides direction and policy guidance to the 

Department, and interacts with Congress and 

the public on departmental policy matters.

International Affairs and Economic Policy 

($59,467,000 from direct appropriations, 

$3,545,000 from reimbursable resources) 

Monitors domestic and international economic 

conditions and collects and analyzes financial 

data.

Domestic Finance and Tax Policy 

($76,304,000 from direct appropriations, 

$24,346,000 from reimbursable resources) 

Monitors and provides economic and financial 

policy expertise in the areas of domestic finance 

and tax policy. 

Terrorism and Financial Intelligence 

($117,000,000 from direct appropriations, 

$21,719,000 from reimbursable resources) 

Develops and implements strategies to counter 

terrorist financing and money laundering.

Treasury-wide Management and Programs 

($43,365,000 from direct appropriations, 

$41,105,000 from reimbursable resources) 

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.

Legislative Proposals

Departmental Offices has no discretionary 

legislative proposals. 

Department of the Treasury - Budget in Brief 14
Mandatory Proposals

As in the FY 2016 Budget, Treasury proposes

legislative language for FY 2017 to allow 

Treasury to draw $7,000,000 from the Gulf 

Coast Restoration Trust Fund for management of 

the fund, including administering the civil and 

administrative penalties arising from the Deep 

Water Horizon oil spill, supporting 

environmental and economic restoration of the 

Gulf Coast region, and standing up grants, 

compliance, and audit programs.

The following are new proposals for mandatory 

funding, which are described in detail in the 

introduction to the Budget-in-Brief. 

• Financing America’s Infrastructure Renewal 

(FAIR) 

• Financial Innovation for Working Families 

Fund 

• Allotment for Puerto Rico EITC Payments 

• Pay for Success

DO Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Domestic Finance and Tax Policy Variance Between Estimated and 

Actual Receipts (Annual 

Forecast)(%)

2.5 3.25 2.8 4.25 4.25

Terrorism and Financial 

Intelligence

Impact of TFI Programs and 

Activities

8.3 8.5 8.8 8.5 8.5

Treasury-wide Management and 

Programs

Treasury-wide Leaders Lead 

Index of the Federal Employee 

Viewpoint Survey (FEVS)

N/A 53.0 54.0 55.0 55.0

Key: DISC – Discontinued

Description of Performance

The following performance measures provide 

a snapshot of DO performance: 

Variance between estimated and actual 

receipts (annual forecast) (percent): As part 

of managing the Government’s central 

operating account and cash position, the Office 

of Fiscal Projections (OFP) forecasts net cash 

flows to ensure that adequate funds are 

available daily to cover federal payments. To 

determine its overall effectiveness, one of 

OFP’s metrics is to measure the variance 

between actual and projected Federal receipts.

The actual variance for FY 2015 was 

2.8 percent, which is significantly lower than 

the 4.25 percent target for FY 2015. 

Therefore, performance was better than the 

target level. In addition, the FY 2015 

performance compares favorably with the 

actual variance for FY 2014, which was 

3.25 percent. The target for both FY 2016 and 

FY 2017 is 4.25 percent. 

Impact of TFI Programs and Activities: In 

order to gauge its performance, TFI created a 

composite measure consisting of three 

program office focus areas related to its 

mission and strategic goals, including 

customer outreach, increasing budget 

production and dissemination of intelligence 

products, and implementing IT modernization 

projects. In FY 2015, TFI exceeded its 

performance goal of 8.5 with a score of 8.8 

and expects to achieve its FY 2016 and 

FY 2017 target of 8.5. 

Department of the Treasury - Budget in Brief 15
Treasury-wide “Leaders Lead” Index of 

Federal Employee Viewpoint Survey 

(FEVS): Treasury set the goal to increase the 

“Leaders Lead” index above 2014 results. 

Treasury’s score for the Leaders Lead Index 

increased from 53 percent in 2014 to 54 

percent in 2015 and set a target of 55 for 

FY 2016. 

Department of the Treasury - Budget in Brief 16
Department-wide Systems and Capital Investments Program

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Enacted Enacted Request $ Change % Change

Department-wide Systems and Capital 

Investments Program $2,725 $5,000 $5,000 $0 0%

Subtotal, Department-wide Systems and 

Capital Investments Program $2,725 $5,000 $5,000 $0 0%

Total Program Operating Level $2,725 $5,000 $5,000 $0 0%

Direct FTE 0 0 0 0 NA

Reimbursable FTE 0 0 0 0 NA

Total FTE 0 0 0 0 NA

Summary

The Department-wide Systems and Capital 

Investments Program (DSCIP) is authorized to 

be used by or on behalf of the Department of 

the Treasury’s bureaus, at the Secretary’s 

discretion, to improve infrastructure, 

modernize business processes, and increase 

efficiency through technology investments. 

DSCIP FY 2017 Budget Highlights

Dollars in Thousands

Department-wide Systems and Capital 

Investments Program FTE Amount

FY 2016 Enacted - $5,000

Changes to Base:

Non-Recurring Costs: - ($5,000)

Zero-Based Budget - ($5,000)

Subtotal Changes to Base - ($5,000)

Total FY 2017 Base - -

Program Changes:

Program Increases: - $5,000

Digital Accountability and Transparency 

Act - $3,000

Renovation of Treasury Buildings - $2,000

Total FY 2017 Request - $5,000

FY 2017 Budget Adjustments

Adjustments to Request

Non-Recurring Costs

Zero-Based Budget -$5,000,000 / +0 FTE 

In the FY 2016 Consolidated Appropriations 

Act, $650,000 was provided for South Plaza 

Restoration of the Main Treasury Building. 

Also, $4,350,000 was provided to support 

mission-critical Treasury functions by 

investing in computing resources and security 

infrastructure. Investments are geared to meet 

the demand from multiple entities for the 

architecture needed to support big data. 

Program Increases

Digital Accountability and Transparency Act 

+$3,000,000 / +0 FTE 

This investment will support Department and 

bureau specific development, modification, 

and integration of attributes to address gaps at 

the transaction level for interfaces and help to 

ensure that the Department and all bureaus 

have resources to meet the minimum 

requirements for the DATA Act. While the 

Department expects bureaus to undertake data 

validation, data stewardship, and data 

maintenance activities, this funding will be 

used to establish a data repository at the 

Department level. More, specifically, the 

investment will support the expansion of the 

Enterprise Data Management infrastructure to 

ensure that bureaus can leverage the 

repository for their own data analytics and 

uses. 

Renovation of Treasury Buildings 

+$2,000,000 / +0 FTE 

Treasury requests $2,000,000 to stabilize the 

bridge that connects the motor pool entrance 

to the Main Treasury Building. Employees 

and contractors use the driveway under the 

bridge to access vehicle and bicycle parking, 

Department of the Treasury - Budget in Brief 17
deliver equipment and mail, and for trash 

removal. The bridge poses a safety risk in its 

current condition. 

Explanation of Budget Activities

Department-wide Systems and Capital 

Investments Program ($5,000,000 from direct 

appropriations) 

The purpose of DSCIP funds is to modernize 

business processes and increase efficiencies 

within Treasury and across the government 

through capital investment. 

Legislative Proposals

DSCIP has no legislative proposals. 

Department of the Treasury - Budget in Brief 18
Cybersecurity Enhancement Account

Program Summary by Budget Activity

Dollars in Thousands

Cybersecurity Enhancement Account FY 2015 FY 2016 FY 2017 FY 2016 to FY 2017

Appropriated Resources Enacted Enacted Request $ Change % Change

New Appropriated Resources:

Internal Revenue Service 0 0 62,084 62,084 0.00%

Treasury-wide 0 0 47,743 47,743 0.00%

Subtotal New Appropriated Resources $0 $0 $109,827 $109,827 0.00%

Total Budgetary Resources $0 $0 $109,827 $109,827 0.00%

Summary

The Cybersecurity Enhancement Account

(CEA) is a new dedicated account designed to 

bolster the Department’s cybersecurity posture 

and mitigate cybersecurity threats to the U.S. 

financial infrastructure. 

Due to increasing cyberattacks on critical 

government systems Treasury aims to mitigate 

this escalating risk by creating a new and 

centralized cybersecurity account. CEA

supports the Treasury Department Strategic

Goal 3 to “Fairly and effectively reform and 

modernize federal financial management, 

accounting, and tax systems,” Strategic Goal 4 

to “Safeguard the financial system and use 

financial measures to counter national security 

threats,” and Strategic Goal 5 to “Create a 

21st-century approach to government by 

improving efficiency, effectiveness, and 

customer interaction.” 

The creation of a centralized program and 

dedicated funding source for cybersecurity will 

enhance Department-wide coordination of 

cybersecurity efforts and improve the 

Department’s responsiveness to cybersecurity 

threats. It will also provide leadership with 

greater visibility into cybersecurity efforts and 

further encourage information sharing across 

Bureaus. The program will improve the 

identification of these threats and better protect 

information systems from attack. With highlevel leadership support, the program will also 

provide a platform to enhance efficiency, 

communication, collaboration, and 

transparency around a common goal—

improving not only the cybersecurity of the 

Department of the Treasury, but also that of 

the nation’s financial sector. 

In FY 2017, the program includes investments 

in two budget activities (Treasury-wide and the 

Internal Revenue Service (IRS)). Spending on 

existing activities remains in the base budgets 

of each bureau. As the program matures, the 

goal is to integrate additional cybersecurity 

investments to fully leverage centralized 

cybersecurity leadership and expertise across 

the Department. 

The $48 million in Department-wide funding 

focuses on critical improvements to Treasurywide systems including the Treasury Secure 

Data Network, the Fiscal Service Trusted 

Internet Connections, and the other systems 

that have been identified as High Values 

Assets. The investments focus on identifying 

and protecting information systems; detecting 

threat actors; and responding to and recovering 

from cyber incidents. A portion of the 

resources will also support a dedicated 

innovation fund for evolving high impact 

cyber investments throughout the Department. 

The $62 million in IRS investments focus on 

two main initiatives: Cyber Defense and eAuthentication. The IRS will enhance the 

security of its overall networks via the use of a 

cyber threat forensics capability, 

Department of the Treasury - Budget in Brief 19
implementation of a comprehensive patch 

management system, and the adoption of 

government-wide information security 

continuous monitoring (ISCM) tools as parts 

of a layered defense. In this Budget request, 

the IRS invests in the technology that allows 

for timely risk assessments, strong prevention 

techniques, and analysis of data that can 

identify and develop solutions for stolen 

identity theft refund fraud. 

Treasury Cybersecurity Enhancement 

Account FY 2017 Budget Highlights

Dollars in Thousands

Cybersecurity Enhancement Account FTE Amount

FY 2016 Enacted - -

Program Changes:

Program Increases: 80 $109,827

IRS Program Increases

Cyber Defense 16 $54,732

e-Authentication 19 $7,352

Treasury-wide Program Increases

Pooled Innovation Fund for Evolving 

High Impact Cyber Investments - $10,000

Encrypt Sensitive Data at Rest and in 

Motion - $7,440

User Access Controls for Sensitive 

Applications - $5,727

Digital Infrastructure Security Team 22 $5,000

Digital Infrastructure Security Team 

(existing DO S&E program funded in the 

CEA) 6 $2,000

Treasury Secure Data Network (TSDN) 

System Upgrades and Security 

Enhancements 4 $4,717

Detect System Vulnerabilities and 

Unauthorized Data Transfers - $3,360

Enhance Incident Response and 

Forensics Capabilities - $2,325

Proactive Cyber Risk and Threat 

Identification 3 $2,098

Mitigate Cyber Threats to U.S. Financial 

Infrastructure 8 $1,651

Proxying Capability at the Fiscal Service 

Trusted Internet Connections (TICs) for 

Encrypted Traffic Inspection - $1,375

IT Cybersecurity Enhancements

(existing DO S&E program funded in the 

CEA) 2 $1,050

Web Domain Encryption - $1,000

Total FY 2017 Request 80 $109,827

FY 2017 Budget Adjustments

IRS Program Increases

Cyber Defense +$54,732,000 / +16 FTE 

This investment provides a set of capabilities 

that protect the IRS’s sensitive data and 

enhances the security posture of its IT 

infrastructure. It provides funding to secure 

data leading to the prevention and elimination 

of vulnerabilities associated with sensitive but 

unclassified data; to conduct external site 

reviews ensuring security controls are in place; 

to implement a consistent, government-wide 

set of information security continuous 

monitoring tools; and to provide a 

comprehensive incident response capability 

bolstering the resilience of mission critical IRS 

operations and their enabling technologies. 

e-Authentication +$7,352,000 / +19 FTE 

This investment funds the design and 

implementation of a common service to verify 

user identity, register individuals, and provide 

and validate their credentials allowing 

taxpayers expanded access to IRS data through 

the use of mobile devices, cloud computing, 

and collaborative technology. 

Treasury-wide Program Increases:

Pooled Innovation Fund for Evolving High 

Impact Cyber Investments +$10,000,000 / 

+0 FTE 

To ensure that new and ever-evolving threats 

can be rapidly addressed before they are 

exploited, Treasury requests resources for a 

pooled innovation fund designed for 

Department-wide high impact cyber 

initiatives. Treasury leadership will manage 

the fund, to include receiving solicitations 

from across the Department and managing and 

dispersing resources based on criteria and need 

at Treasury offices and bureaus.

Department of the Treasury - Budget in Brief 20
Encrypt Sensitive Data at Rest and in Motion 

+$7,440,000 / +0 FTE 

In addition to protecting information residing 

on HVAs through access control, Treasury has 

also identified several opportunities to protect 

these systems’ data at rest and in motion. This 

initiative area would support strong encryption 

of data at rest within HVA databases as well as 

encrypt data in transit via email and publicfacing websites. This would also enable secure 

cloud computing by establishing a cloud 

environment certified at the Federal Risk and 

Authorization Management Program’s 

(FedRAMP) High security baseline. This 

initiative will also protect sensitive data 

through enhanced deployment of application 

firewalls and expanded user awareness 

training, which would lessen the risk of 

malicious and unintentional data breaches,

respectively.

User Access Controls for Sensitive 

Applications +$5,727,000 / +0 FTE 

Funding will strengthen the identification and 

authentication requirements for users logging 

on to individual Treasury applications. 

Strengthening these systems will decrease the 

likelihood that an intruder on the network will 

be able to access sensitive information 

regarding the public, the economy and the 

Treasury workforce that is housed in these 

applications by implementing strong 

authentication at both the application level and 

the network level for applications identified as 

High Value Assets (HVAs).

Digital Infrastructure Security Team 

+$7,000,000 / +28 FTE

The FY 2016 Consolidated Appropriations Act 

provides $2,000,000 and six FTE in the 

Departmental Offices (DO) Salaries and 

Expenses (S&E) account to establish a Digital

Infrastructure Security Team (DIST). Because 

of the Treasury-wide cybersecurity focus of 

this initiative, Treasury proposes to fund this 

initiative in the CEA in FY 2017. To build on 

the $2,000,000 provided in the FY 2016 

Consolidated Appropriations Act in the

Departmental Offices (DO) Salaries and 

Expenses (S&E) account, Treasury requests an 

additional $5,000,000 and 22 FTE, which will 

form a centralized cohort of web/cyber experts 

to protect and transform Treasury’s digital 

services. They will have a specific focus on a 

secure system that promotes ease of use and 

system cost-effectiveness, as well as possesses 

a robust virtual cybersecurity infrastructure to 

protect Treasury’s cyber assets, especially 

those assets with the greatest impact to 

citizens. Treasury’s digital government 

strategy will continue to be guided by four 

principles: 

• Prioritizing the safe and secure delivery and 

use of digital services and protecting 

information and privacy; 

• Enabling secure access to high-quality 

digital government information and services 

anywhere, anytime, on any device;

• Unlocking the power of government data to 

spur innovation and improve the quality of 

services; and

• Procuring and managing secure devices, 

applications, and data in smart and 

affordable ways.

The digital service experts on the team will 

bring best practices in the disciplines of 

cybersecurity, design, software engineering, 

and product management to bear on the 

agency’s most important services Treasury 

will increase operational and technical controls 

related to essential digital services functions, 

including security and privacy oversight, web 

application security, vulnerability assessment, 

predictive intelligence analysis, privacy 

analysis, and security coding and testing. This 

initiative will protect the data and 

infrastructure that supports U.S. citizens, while 

improving accessibility and maintaining 

transparency.

Department of the Treasury - Budget in Brief 21
Treasury Secure Data Network (TSDN) 

System Upgrades and Security 

Enhancements +$4,717,000 / +4 FTE 

This investment will fund critical 

improvements to the TSDN in three areas: 

• Treasury requests hardware and technical 

support to transform TSDN into a private 

cloud at a remote data center. Through 

virtualization, the network will be more 

secure and facilitate faster patching of 

newly discovered vulnerabilities. 

Replacing this aging hardware with a cloudbased model will also improve mission 

productivity for system users, who are 

carrying out Treasury’s most sensitive 

functions; 

• This investment will increase incident 

response after-hours system maintenance 

and improve identification of anomalous 

and/or malicious behavior. This investment 

in hardware, software, technical support and 

FTE will increase the NOC/SOC 

capabilities for the TSDN and enhance 

security monitoring of the TSDN perimeter 

to a level commensurate with the system’s 

sensitivity; and

• This request will provide advanced toolsets 

for automated monitoring, as well as a 

dedicated analyst to review outputs from 

these toolsets. These capabilities will enable 

better detection of anomalous internal 

TSDN traffic, such as unauthorized 

attempts to access information and 

suspicious exfiltration of data. These 

additional safeguards will also enable 

compliance with several areas of Executive 

Order 13587, which instructs agencies 

operating classified networks to 

appropriately share and safeguard classified 

information on computer networks. 

Detect System Vulnerabilities and 

Unauthorized Data Transfers +$3,360,000 / 

+0 FTE 

The longer a breach goes unnoticed, the higher 

the probability that its severity will increase. 

For this reason, detection of anomalous and/or 

malicious activity must be spotted quickly. 

Increased deployment of data loss prevention 

tools to Treasury’s sensitive enterprise 

information systems will improve the 

Department’s ability to detect unauthorized 

access of information and track its movement 

across the network. Additionally, Treasury 

will adopt advanced intrusion detection 

methods and systems used by credit card 

companies to detect anomalous behavior to 

improve Treasury’s ability to detect malicious

actors within its networks.

Enhance Incident Response and Forensics 

Capabilities +$2,325,000 / +0 FTE 

In the event that malicious activity is 

discovered on Treasury’s networks, rapid 

response to and recovery from said activity is 

largely reliant on being able to examine past 

network traffic to understand where the 

adversary has traveled within the network, 

what information has been compromised, and 

how to mitigate and minimize the damage. 

Treasury needs to extend its retention of key 

data sources in order to support forensics and 

investigations of cyber incidents. Treasury 

seeks to enhance its respond and recover 

capabilities by extending network traffic 

capture and increase its capacity to aid bureaus 

during cyber incident investigations. This will 

result in a faster response and recovery time in 

the event of a cyberattack.

Proactive Cyber Risk and Threat 

Identification +$2,098,000 / +3 FTE

The foundation of a strong cybersecurity 

program is proper identification of risk and 

threat vectors, and appropriate documentation 

of those risks and threats to enable decision 

making. This will be accomplished in part 

through strong security assessment and 

authorization of enterprise systems. Treasury 

will also establish a dedicated group of 

security experts to validate that systems have 

been engineered and developed securely from 

Department of the Treasury - Budget in Brief 22
the outset. Additionally, this group will carry 

out penetration tests to uncover vulnerabilities 

in Treasury’s systems before they are 

discovered or exploited by adversaries. 

Mitigate Cyber Threats to U.S. Financial 

Infrastructure +$1,651,000 / +8 FTE 

Treasury requests funds and personnel to 

expand Treasury’s capabilities to promote the 

security and resilience of the financial 

services sector. (Treasury is the sectorspecific lead agency under Presidential Policy 

Directive 21: Critical Infrastructure Security 

and Resilience.) The request will allow 

Treasury and its partners, including other 

federal agencies, to expand work with the 

financial services sector to improve the sharing 

of cybersecurity information, promote the use 

of best practices, and respond to cyber 

incidents. 

• Information Sharing. Over the past several 

years, malicious cyber activity has 

increased, and the financial services sector 

has been one of the major areas of concern. 

The number and extent of threats to 

financial services networks has grown 

significantly. To guard against these 

threats, it is vital to share timely and 

actionable cybersecurity information among 

the public and private sectors. Working 

closely with the Department of Homeland 

Security, the Federal Bureau of 

Investigation, and the Intelligence 

Community, Treasury develops timely and 

actionable information sharing products 

tailored specifically to the financial services 

sector. However, Treasury needs to expand 

and enhance its efforts to match the rapid 

increase in malicious cyber activity;

• Best Practices. Treasury also is responsible 

for promoting the use of best practices 

among the financial services sector. These 

best practices help improve baseline 

security levels. Treasury works to ensure 

that the needs and interests of the financial 

services sector are represented as such 

guidelines are developed and communicates 

opportunities for firms to participate in their 

development directly or through trade 

associations or consortia. Treasury requires 

additional specialized staff with knowledge 

or experience from the financial services 

sector who are experienced in how to 

engage the wider financial services 

community in the development, 

implementation, and promotion of 

voluntary cybersecurity standards and best 

practices in the sector and can operate from 

Treasury’s neutral perspective of promoting 

security, but not a specific technology; and 

• Incident Response. Treasury is responsible 

for coordinating with firms and other 

agencies to respond to significant cyber 

incidents affecting the financial services 

sector. The number of significant cyber 

incidents impacting the financial services 

sector continues to rise. Therefore, 

Treasury must expand its capabilities to 

plan for and respond to major incidents 

through a strong and growing cybersecurity 

exercise program for the financial services 

sector and the development of appropriate 

incident response plans. 

Proxying Capability at the Fiscal Service 

Trusted Internet Connections (TICs) for 

Encrypted Traffic Inspection +$1,375,000 / 

+0 FTE 

Internet traffic is increasingly composed of 

encrypted messages that Treasury is unable to

scan for threats. The procurement of 

additional hardware, software and Fiscal 

Service support will allow for 100 percent

inspection of all in-bound and out-bound 

encrypted internet traffic and support 

compliance with Data Loss Prevention (DLP) 

policies. 

IT Cybersecurity Enhancements +$1,050,000 

/ +2 FTE 

The FY 2016 Consolidated Appropriations Act 

provides $1,050,000 and two FTE in the DO 

Department of the Treasury - Budget in Brief 23
S&E account for security enhancements to 

classified networks and expansion of DO’s 

Wireless Intrusion Prevention System. 

Because of the cybersecurity focus of this 

initiative, Treasury proposes to fund this 

initiative in the CEA in FY 2017. 

Web Domain Encryption +$1,000,000 / 

 +0 FTE 

This request meets compliance requirements 

for the OMB mandate M-15-13, requiring that 

all publically accessible federal websites and 

web services only provide service through a 

secure connection. Treasury will use these 

funds to ensure compliance of all new services 

and websites, as well as complete the 

transition of legacy sites. 

Explanation of Budget Activities

Internal Revenue Service ($62,084,000 from 

direct appropriations) 

The Department requests dedicated funding 

for IRS to strengthen the security posture of its 

IT infrastructure and to improve authentication 

technologies allowing taxpayers expanded 

access to web-based IRS account data.

Treasury-wide ($47,743,000 from direct 

appropriations) 

The Treasury Department requests funds that 

have a Treasury-wide focus to bolster the 

Department’s cybersecurity posture and 

mitigate cybersecurity threats to the U.S. 

financial infrastructure. 

Legislative Proposals

The Treasury Cyber Program has no 

legislative proposals.

Department of the Treasury - Budget in Brief 24
Office of Inspector General

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Enacted Enacted Request $ Change % Change

Audit $28,275 $28,304 $29,605 $1,301 4.60%

Investigations $7,076 $7,112 $7,439 $327 4.60%

Subtotal, Office of Inspector General $35,351 $35,416 $37,044 $1,628 4.60%

Offsetting Collections - Reimbursables $13,000 $13,000 $10,500 ($2,500) -19.23%

Total Program Operating Level $48,351 $48,416 $47,544 ($872) -1.80%

Direct FTE 194 194 194 0 0.00%

Reimbursable FTE 19 19 19 0 0.00%

Total FTE 213 213 213 0 0.00%

Summary

The Inspector General Act of 1978 gives the 

Treasury Office of Inspector General (OIG) 

the authority and responsibility to (1) audit and 

investigate the Department of the Treasury’s 

programs and operations under its 

jurisdictional oversight; (2) provide leadership 

and coordination and recommend policies 

designed to promote economy, efficiency, and 

effectiveness, and prevent and detect fraud and 

waste in those programs and operations; and 

(3) provide a means for keeping the Secretary 

and Congress fully and currently informed 

about problems and deficiencies relating to the 

administration of such programs and 

operations and the necessity for and progress 

of corrective action.

The OIG provides independent oversight of 

Treasury and its bureaus except the Internal 

Revenue Service (IRS) and the Troubled Asset 

Relief Program (TARP). The OIG has four 

components, including two mission offices – 

the Office of Audit and the Office of 

Investigations. In support of Treasury’s 

strategic goals, the OIG established the 

following strategic goals: (1) promote the 

integrity, efficiency, and effectiveness of 

programs and operations across the OIG’s 

jurisdictional boundaries through audits and 

investigations; (2) proactively support and 

strengthen the ability of programs across the 

OIG’s jurisdictional boundaries to identify 

challenges and manage risks; (3) fully and 

currently inform stakeholders of OIG findings, 

recommendations, investigative results, and 

priorities; and (4) enhance, support, and 

sustain a workforce and strengthen internal 

operations to achieve the OIG mission, vision, 

and strategic goals.

The FY 2017 request for OIG will be used to 

fund critical audit, investigative, and mission 

support activities to meet the requirements of 

the Inspector General Act, and other statutes 

including, the Dodd-Frank Wall Street Reform 

and Consumer Protection Act (Dodd-Frank); 

Federal Information Security Modernization 

Act (FISMA); Government Management 

Reform Act; Improper Payments Elimination 

and Recovery Act, Digital Accountability and 

Transparency Act of 2014 (DATA Act); 

Federal Deposit Insurance Act, Small Business 

Jobs Act of 2010; and Resources and 

Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the 

Gulf Coast States Act of 2012 (RESTORE 

Act). Specific mandates include audits of the 

Department’s financial statements, the 

Department’s compliance with FISMA, failed 

Department of the Treasury - Budget in Brief 25
depositary institutions regulated by Treasury, 

and data submitted to USAspending.gov. 

With the resources available after mandated 

requirements are met, OIG will conduct audits 

of the Department’s highest risk programs and 

operations, and respond to stakeholder 

requests for specific work as appropriate. 

Some of the Department’s highest risk 

programs and operations include: (1) Cyber 

Threats; (2) Management of Treasury’s 

Authorities Intended to Support and Improve 

the Economy; (3) Efforts to Promote Spending 

Transparency and to Prevent and Detect 

Improper Payments; (4) Anti-Money 

Laundering and Terrorist Financing/Bank 

Secrecy Act Enforcement; and (5) Gulf Coast 

Restoration Trust Fund Administration. 

Cyber Threats

Cybersecurity represents one of the most 

serious challenges facing the Nation today. A 

reliable infrastructure, including information 

systems and networks, is vital to our national 

security and economic stability. Cyber threats 

are a persistent concern as Treasury’s 

information systems are critical to the core 

functions of government and the Nation’s

financial infrastructure. As cyber threats 

become more sophisticated and subtle, they 

pose an ongoing challenge for Treasury to 

fortify and safeguard its internal systems and 

operations and the financial sector it oversees. 

Effective public-private coordination 

continues to be required to address the cyber 

threats against the Nation’s critical 

infrastructure. In this regard, Treasury is

looked upon to provide effective leadership to 

financial institutions in particular, and the 

financial sector in general, to strengthen 

awareness and preparedness against cyber 

threats. 

Management of Treasury’s Authorities 

Intended to Support and Improve the 

Economy 

Congress provided Treasury with broad 

authorities to address the recent financial crisis 

under the Housing and Economic Recovery 

Act (HERA) and the Emergency Economic 

Stabilization Act (EESA) enacted in 2008, the 

American Recovery and Reinvestment Act of 

2009 (Recovery Act), and the Small Business 

Jobs Act of 2010. In response to the call for 

further financial reform, Congress passed 

Dodd-Frank in July 2010. While Treasury’s 

program administration under these Acts has, 

for the most part matured, challenges remain

in managing these programs and investments. 

This challenge focuses on the broad authorities 

given to Treasury: 

• Dodd-Frank established the Financial 

Stability Oversight Council (FSOC), which 

is chaired by the Treasury Secretary. 

FSOC’s mission to identify risks to 

financial stability that could arise from 

activities of large, interconnected financial 

companies; promote market discipline; and 

respond to emerging threats to the financial 

system. 

• The Small Business Jobs Act of 2010 

created within Treasury the Small Business 

Lending Fund. Through that fund, 

Treasury invested $4 billion in financial 

institutions intended to increase the 

availability of credit to small businesses. 

The Act also provided $1.5 billion to 

Treasury to allocate to eligible State 

programs through the State Small Business 

Credit Initiative. 

• The Small Business Jobs Act also provided 

Treasury with authority to guarantee bonds 

issued for certain community and 

economic development activities. That 

function was established through

Treasury’s Community Development 

Financial Institutions (CDFI) Fund in June 

2013. 

Department of the Treasury - Budget in Brief 26
• Under HERA, Treasury supports the 

financial solvency of the Federal National 

Mortgage Association (Fannie) and the 

Federal Home Loan Mortgage Corporation 

(Freddie). To maintain the positive net 

worth of these two government sponsored 

enterprises (GSEs), Treasury invested 

about $187 billion in senior preferred stock 

in the two GSEs. While the GSEs have not 

needed additional support since fiscal year 

2012, their futures remain uncertain and 

more assistance may be needed. If such 

support is needed, the funding capacity 

available is $117.6 billion and

$140.5 billion, to Fannie and Freddie, 

respectively.

• The American Recovery and Reinvestment 

Act of 2009 (Recovery Act) provided 

Treasury with approximately $30 billion in 

non-IRS funding for low-income housing 

and specified energy properties for which 

OIG provides oversight. 

Efforts to Promote Spending Transparency 

and to Prevent and Detect Improper 

Payments

The DATA Act requires the Federal 

Government to provide consistent, reliable, 

and useful online data about how it spends 

money. As a result, the DATA Act put certain 

requirements on the Secretary, the Director of 

the Office of Management and Budget (OMB), 

the Inspectors General of each Federal agency, 

and the Comptroller General of the United 

States. Implementing the DATA Act is a 

complex task requiring a substantial level of 

interagency coordination and cooperation to 

develop, establish, and apply new financial 

data standards and to develop new data 

handling methodologies within a short 

timeframe.

In light of the continuing problem with 

improper payments (estimated at $125 billion, 

or 4.5 percent of all program outlays, for fiscal 

year 2014), the Federal Government has 

intensified efforts to reduce improper 

payments in major Federal programs. The Do 

Not Pay Initiative, and the Treasury Bureau of 

the Fiscal Service’s (Fiscal Service) Do Not 

Pay Business Center, are chief components of 

efforts designed to prevent and detect 

improper payments to individuals and entities. 

With its potential to reduce improper 

payments, the Do Not Pay Program is a major 

and important undertaking by Fiscal Service 

and Treasury. 

Anti-Money Laundering and Terrorist 

Financing/Bank Secrecy Act Enforcement 

Preventing criminals and terrorists from using 

financial networks to sustain their operations 

and/or launch attacks against the U.S. 

continues to be a challenge. Treasury’s Office 

of Terrorism and Financial Intelligence (TFI) 

is dedicated to disrupting the ability of terrorist 

organizations to fund their operations. TFI 

brings intelligence gathering and analysis, 

economic sanctions, international cooperation, 

and private-sector cooperation to identify 

donors, financiers, and facilitators supporting 

terrorist organizations, and disrupt their ability 

to fund such organizations. Treasury carries 

out its responsibilities to enhance financial 

transparency through the laws collectively 

known as the Bank Secrecy Act (BSA). The 

Financial Crimes Enforcement Network 

(FinCEN) is the Treasury bureau responsible 

for administering BSA, while Treasury’s 

Office of Foreign Assets Control administers 

U.S. foreign sanction programs. Given the 

criticality of this challenge to the Department’s 

mission, we continue to consider anti-money 

laundering and combating terrorist financing 

programs and operations as inherently highrisk.

Gulf Coast Restoration Trust Fund 

Administration

In response to the Deepwater Horizon oil spill, 

Congress enacted the RESTORE Act. This 

law established within Treasury the Gulf Coast 

Department of the Treasury - Budget in Brief 27
Restoration Trust Fund (Trust Fund). It

requires Treasury to deposit 80 percent of 

administrative and civil penalties paid by 

responsible parties pursuant to the Federal 

Water Pollution Control Act (Clean Water 

Act) into the Trust Fund. Thne monies 

deposited are to be distributed to the affected

Gulf Coast States (Alabama, Florida, 

Louisiana, Mississippi, and Texas) for 

environmental and economic restoration. As 

of December 2015, the Trust Fund received 

about $816 million from the Federal 

Government’s settlement with the Transocean 

defendants. In July 2015, BP Exploration & 

Production Inc. (BPXP), agreed to settle with 

the Federal Government and the Gulf Coast 

States. This will result in about $4.4 billion 

plus interest expected to be deposited into the

Trust Fund over a 15-year period. With the 

amount and timing of the money resolved,

Treasury, the Gulf Coast States, and impacted 

local governments are challenged to meet the 

intent of the Act within the expected funding 

levels and timing of payments. 

In the Investigations operational area, OIG has 

established five priorities for FY 2017: 

Criminal and Serious Employee Misconduct

The OIG’s highest investigative priorities are 

complaints involving alleged criminal and 

other serious misconduct by Treasury 

employees. OIG investigates allegations of 

the general crimes enumerated in Title 18 of 

the U.S. Code, other federal crimes, alleged 

violations of the Ethics in Government Act, 

and allegations of serious misconduct 

prohibited by the Standards of Ethical Conduct 

for Employees of the Executive Branch. Some 

Treasury bureaus and offices have additional 

rules and regulations relating to ethical 

standards for their employees. OIG also 

investigates those complaints and alleged 

violations. 

Fraud Involving Contracts, Grants, 

Guarantees, and Funds

The OIG investigates allegations of fraud and 

other crimes involving Treasury contracts, 

grants, loan guarantees, and federal funds, 

including investigations made in accordance 

with Sections 1602 and 1603 of the Recovery 

Act. Such allegations often involve 

contractors, entities, and individuals who are 

providing or seeking to provide goods or 

services to the Department. OIG receives 

complaints alleging criminal or other 

misconduct from employees, contractors, the 

public, and Congress. 

Financial Programs and Operations Crime 

Investigations relating to Treasury financial 

programs and operations involve issuing 

licenses, providing benefits, and exercising 

oversight of U.S. financial institutions; fraud 

involving improper Federal payments such as 

those involving Treasury checks and the Check 

Forgery Insurance Fund (“CFIF”); crimes 

involving the improperly-redirected benefits of 

federal government payees; and false claims of 

any kind that generate inappropriate Federal 

payments, including federal income tax 

refunds, Social Security benefits, and 

Veterans’ Administration payments.

Threats Against Treasury Employees and 

Facilities

Investigative efforts into threats against 

Treasury employees and facilities are critical 

in ensuring safety. These matters require 

prompt attention and coordination with 

federal, State, and local authorities in order to 

protect those involved.

Treasury Employee and Bureau 

Impersonation Scams

Investigations relating to scammers who 

defraud the citizens of the U.S. and other 

countries by impersonating Treasury 

employees and/or by fraudulently using the 

Treasury and Bureau seals. These scams have

significantly increased in the last few years, 

Department of the Treasury - Budget in Brief 28
and require prompt attention to protect the 

public and the integrity of the Department.

OIG FY 2017 Budget Highlights

Dollars in Thousands

Office of Inspector General FTE Amount

FY 2016 Enacted 194 $35,416

Changes to Base:

Maintaining Current Levels (MCLs): - $508

Pay-Raise - $269

Pay Annualization - $89

Non-Pay - $150

Subtotal Changes to Base - $508

Total FY 2017 Base 194 $35,924

Program Changes:

Program Increases: - $1,120

DATA Act and Other Audit Workload - $1,120

Total FY 2017 Request 194 $37,044

FY 2017 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$269,000 / +0 FTE

Funds are requested for the proposed January 

2017 pay-raise. 

Pay Annualization +$89,000 / +0 FTE

Funds are requested for annualization of the 

January 2016 pay-raise.

Non-Pay +$150,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

DATA Act and Other Audit Workload 

+$1,120,000 / +0 FTE

Funds are requested for anticipated increase in 

DATA Act and other audit workload.

Explanation of Budget Activities

Audit ($29,605,000 from direct 

appropriations, $10,500,000 from 

reimbursable resources) 

The Office of Audit conducts audits to ensure 

the accountability of resources, protect 

information, and provide recommendations for 

improving the economy, efficiency, 

effectiveness, and integrity of Treasury 

programs and operations under its jurisdiction, 

which include those of Treasury and the Gulf 

Coast Ecosystem Restoration Council. The 

requested funding for FY 2017 is necessary to 

perform mandated work and maintain an 

appropriate level of oversight of Treasury 

programs and operations consistent with its 

responsibilities under the Inspector General 

Act. The OIG also responds to requests by 

Treasury officials and the Congress for 

specific work. Reimbursable funding supports 

agreements for contracted audits as well as 

oversight of the SBLF/SSBCI programs. 

SBLF/SSBCI program oversight and expected 

performance is detailed in the SBLF/SSBCI 

Program Office budget submission. 

Investigations ($7,439,000 from direct 

appropriations) 

The Office of Investigations (OI) prevents, 

detects, and investigates complaints of fraud, 

waste, and abuse. This includes the detection 

and prevention or deterrence of employee 

misconduct and fraud, or related financial 

crimes within or directed against Treasury. 

The Office refers its cases to the Department 

of Justice, State or local prosecutors for 

criminal prosecution or civil litigation, or to 

agency officials for corrective administrative 

action. 

With the increased risk of the Recovery Act 

grant programs for low-income housing and 

specific energy properties, the Office of 

Investigations faces greater challenges and 

anticipated increases in grant fraud. 

Investigative efforts are being directed towards 

those that subvert bank examination processes, 

subsequently defrauding the system and 

eroding the public’s trust. 

OI also has substantially increased its focus on 

the investigation of Treasury related improper 

payment fraud and scams targeting U.S. 

citizens where Treasury employees are being 

Department of the Treasury - Budget in Brief 29
impersonated and Treasury seals are being 

used to defraud victims.

Legislative Proposals

OIG has no legislative proposals. 

OIG Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Audit Number of Completed Audit 

Products

72 75 86 77 86

Audit Percent of Statutory Audits 

Completed by the Required Date

100.0 100.0 100.0 100.0 100.0

Investigations Percentage (%) of All Cases 

Closed During Fiscal Year that 

were Referred for Criminal/Civil 

Prosecution or Treasury 

Administrative Action

84.0 84.0 87.0 80.0 80.0

Key: DISC – Discontinued

Description of Performance

The Office plans to complete 86 audit products 

in FY 2017 and 77 in FY 2016. In FY 2015, 

the Office of Audit completed 86 audit 

products, exceeding the planned target of 75. 

In FY 2015, the Office met its mandated audit 

requirements and identified $48.9 million in 

monetary benefits. 

In keeping with the OIG’s strategy to maintain 

a highly skilled and motivated workforce, the 

OIG plans and executes a meaningful body of 

work designed to help ensure the integrity, 

efficiency, and effectiveness of programs and 

operations across OIG’s jurisdiction while 

looking for opportunities to improve them. 

In FY 2015 the OIG exceeded the 

Investigative Performance Measure target, 

opened 133 new investigations, and closed 70

investigations. The OIG also referred 27 

investigations that substantiated administrative 

violations against a Treasury employee to the 

appropriate regulated bureau for action. In 

addition, the OIG referred 72 investigations 

for criminal prosecution. The OIG received 

investigative referrals regarding potential 

criminal misconduct that occurred prior to or 

during bank failures, and has worked criminal 

investigations with the Federal Deposit 

Insurance Corporation Office of Inspector 

General and the OIG Office of Audit regarding 

potential prosecution of acts which may have 

contributed to the bank failures. 

Department of the Treasury - Budget in Brief 30
Special Inspector General for the Troubled Asset Relief Program

Program Summary by Budget Activity

Dollars in Thousands

Summary

The FY 2017 President’s Budget request for 

the Special Inspector General for the Troubled 

Asset Relief Program (SIGTARP) includes 

funding to support and complement Treasury’s 

Strategic Goal 1: Promote domestic economic 

growth and stability while continuing reforms 

of the financial system. Through open and 

transparent communication with Congress, 

SIGTARP also supports Treasury’s Strategic 

Goal 5: Create a 21st-century approach to 

government by improving efficiency, 

effectiveness, and customer interaction. 

SIGTARP promotes the efficiency and 

effectiveness of TARP management through 

transparency, coordinated oversight, and 

robust enforcement. Congress created 

SIGTARP to protect taxpayers who funded the 

TARP from fraud, waste, and abuse through 

SIGTARP oversight and audits, and through 

investigations to combat fraud and other 

crime. SIGTARP is a white-collar law 

enforcement agency with the authority to 

search, seize, and arrest. Fraud prevention and 

law enforcement are at the heart of 

SIGTARP’s mission. SIGTARP has been 

responsible for many of the significant 

financial crisis cases, but these complex cases 

take time to investigate. Considering most 

complex financial fraud investigations can 

take several years to complete, SIGTARP’s 

high arrest and conviction rates are particularly 

notable. 

Of the four primary oversight bodies 

referenced in the Emergency Economic 

Stabilization Act of 2008 (EESA), (i.e., 

SIGTARP, the Financial Stability Oversight 

Board, the Congressional Oversight Panel, and 

the Government Accountability Office), 

SIGTARP stands as the sole TARP oversight 

body responsible for criminal law 

enforcement. Also, SIGTARP is the only 

agency solely charged with the mission of: 

• Transparency – Promote transparency in 

the government’s response to the financial 

crisis, including TARP programs; 

• Oversight – Advise and provide 

recommendations to Treasury and the 

federal banking regulators to facilitate 

FY 2015 FY 2016 FY 2017

Budget Activity Enacted Enacted Request Change % Change

Audit 9,243 8,870 8,644 (226) -2.55%

Investigations 24,991 31,801 32,516 715 2.25%

Subtotal Appropriated Resources $ 34,234 $ 40,671 $ 41,160 $ 489 1.20%

Unobligated Balances from Prior Years 10,957 6,495 3,790 (2,705) -41.65%

Available PPIP Funds 965 928 1,548 620 66.81%

Total Program Operating Level $ 46,156 $ 48,094 $ 46,498 $ (1,596) -3.32%

Total FTE 192 192 192 N/A N/A

FY 2015 FY 2016 FY 2017

Budget Activity Enacted Enacted Request Change % Change

Audit 12,201 10,266 9,440 (826) -8.05%

Investigations 33,955 37,828 37,058 (770) -2.04%

Total SIGTARP by Budget Activity $ 46,156 $ 48,094 $ 46,498 $ (1,596) -3.32%

Total FTE 192 192 192 N/A N/A

FY 2016 to FY 2017

FY 2016 to FY 2017

Department of the Treasury - Budget in Brief 31
effective oversight and to prevent fraud, 

waste, and abuse; and

• Robust Enforcement – Prevent, detect, 

investigate, and refer for prosecution cases 

of fraud, waste, and abuse related to 

TARP.

SIGTARP’s FY 2017 President’s Budget 

request will provide resources to (1) detect, 

stop, and investigate crime related to TARP; 

(2) support prosecutions of those defendants 

SIGTARP investigates; and (3) provide 

oversight and transparency over TARP-funded 

housing programs. 

Under EESA, SIGTARP is mandated to carry

out its duties until the government has sold or 

transferred all assets and terminated all 

obligations under TARP. SIGTARP’s 

mission, which is independent of Treasury’s 

mission related to TARP, is to remain “on 

watch” as long as TARP assets remain 

outstanding, which Treasury currently has 

scheduled until at least the year 2023. 

SIGTARP FY 2017 Budget Highlights

Dollars in Thousands

FY 2017 Budget Adjustments

Maintaining Current Level (MCLs)

Pay-Raise +$303,000 / +0 FTE 

Funds are requested for the proposed 

January 2017 pay-raise. 

Pay Annualization +$101,000 / +0 FTE 

Funds are requested for annualization of the 

January 2016 pay-raise.

Non-Pay +$184,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment. 

Technical FTE Adjustment -$0 / -8 FTE

The technical FTE adjustment reduces the 

appropriated FTE level but does not reduce 

SIGTARP’s overall FTE levels. The eight 

FTE will be absorbed in SIGTARP’s PPIP 

fund to more accurately reflect work 

performed and prior year usage. 

Efficiency Savings -$99,000 / -8 FTE

SIGTARP will reduce costs through 

efficiencies identified in technology 

investments.

Explanation of Budget Activities

Audit ($8,644,000 from direct appropriations) 

The Audit budget activity supports 

SIGTARP’s priority of coordinated oversight 

by providing recommendations to Treasury to 

improve the effectiveness and efficiency of 

TARP programs; to bring transparency to 

decisions made in TARP; and to prevent fraud, 

waste, and abuse. SIGTARP conducts, 

supervises, and coordinates programmatic 

audits of TARP without sacrificing the rigor of 

required methodology. SIGTARP’s audits 

facilitate transparency and opportunities to 

improve TARP. 

Investigations ($32,516,000 from direct 

appropriations) 

The Investigations budget activity supports 

SIGTARP’s priority of robust law 

enforcement of crimes and other violations of 

the law related to TARP. SIGTARP conducts 

criminal and civil investigations related to 

TARP using a staff of experienced 

investigators, including special agents, 

forensic agents, investigators, analysts, and 

investigative attorneys. This structure 

provides SIGTARP with a broad array of 

expertise and perspective in detecting and 

Special Inspector General for TARP FTE Amount

FY 2016 Enacted 192 $40,671 

Changes to Base:

Maintaining Current Levels (MCLs): $588 

Pay raise 303 

Pay annualization 101 

Non-pay 184 

Efficiency Savings (8) $(99)

Technical FTE Adjustment (8)

Efficiency Savings (99)

Subtotal Changes to Base (8) $489 

Total FY 2017 Base 184 $41,160 

Total FY 2017 Request 184 $41,160 

Department of the Treasury - Budget in Brief 32
unravelling the most sophisticated of crimes. 

In the interest of maximizing resources, 

SIGTARP coordinates closely with other law 

enforcement agencies. In forming law 

enforcement partnerships and task force 

relationships across federal and state 

governments, SIGTARP leverages its unique 

position and expertise. 

Legislative Proposals

SIGTARP has no legislative proposals. 

SIGTARP Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Audit Number of Completed Audit Products 

(Units) 10 10 8 DISC DISC

Audit

Number of Completed Audit Products 

Including Referrals to Investigations 

Division (Units)

N/A N/A N/A 7 7 

Audit

Percentage of Congressional Inquiries 

Responded to within 45 Days of 

Receipt (%)

N/A N/A 100 85 85

Investigations

Percentage of Cases Accepted for 

Consideration by Civil or Criminal 

Authorities Resulting in a Positive 

Final Outcome (%)

N/A N/A N/A 60 70

Investigations

Percentage of Cases Presented to 

Civil or Criminal Authorities Within 

Eight Months of the Case Being 

Opened (%)

N/A N/A N/A 70 70

Investigations Percentage of Cases that are Joint 

Agency/Task Force Investigations (%) 79 76 70 70 70

Investigations

Percentage of Hotline Complaints 

Responded to or Referred for 

Investigation or further action with 14 

days of Receipt (%)

 83 95 94 DISC DISC

Investigations Percentage of Investigations Accepted 

for Consideration by Prosecutors (%) 94 98 95 DISC DISC

Investigations

Percentage of Preliminary 

Investigations Converted to full 

Investigations within 180 days (%)

 82 96 100 80 80

Key: DISC - Discontinued

Department of the Treasury - Budget in Brief 33
Description of Performance

The performance measure “Number of 

Completed Audit Products” includes issuing 

audit products that promote the efficiency and 

effectiveness of TARP and prevent waste, 

fraud, and abuse. 

SIGTARP met its target of eight audit 

products for FY 2015. In recognition of the 

shift of increasing resources to law 

enforcement and to reflect expected results of 

the new forensic audit unit, SIGTARP 

changed this target in FY 2016 to more 

accurately reflect the relationship between the 

Audit and Investigations activities. The new 

measure, “Number of Completed Audit 

Products including Referrals to Investigations 

Division,” tracks the ties between the two 

activities and continues to measure the number 

of audit reports that promote the efficiency and 

effectiveness of TARP. The target for this new 

metric is seven in FY 2016 and seven in 

FY 2017. 

In FY 2015, SIGTARP added a new measure 

to track the responsiveness of information flow 

between SIGTARP and Congress. 

“Percentage of Congressional Inquiries 

Responded to within 45 days of Receipt”

tracks SIGTARP’s promptness in providing 

developments of its oversight activities to 

Congress. In FY 2015, SIGTARP exceeded 

its 85 percent target in all inquiries, responding 

within 45 days 100 percent of the time. 

SIGTARP’s targets are 85 percent for 

FY 2016 and 85 percent for FY 2017. 

The SIGTARP Hotline has analyzed more than 

34,968 Hotline contacts. The “Percentage of 

Hotline Complaints Responded to or Referred 

for Investigation or Further Action within 

14 Days of Receipt” was almost 94 percent for 

FY 2015, exceeding the target of 75 percent. 

As SIGTARP transitions to alternative means 

of uncovering TARP-related crimes, it is 

discontinuing this measure in FY 2016. 

Instead, SIGTARP will measure the 

“Percentage of Cases Accepted for 

Consideration by Civil or Criminal Authorities 

Resulting in a Positive Final Outcome.” For 

this new metric, SIGTARP’s targets are 

60 percent for FY 2016 and 70 percent for 

FY 2017. 

During FY 2015, “Percentage of Investigations 

Accepted for Consideration by Prosecutors” 

was more than 95 percent, exceeding the target 

of 70 percent. SIGTARP will discontinue this 

performance metric in FY 2016 and replace it 

with “Percentage of Cases Presented to Civil 

or Criminal Authorities within Eight Months 

of the Case Being Opened.” The targets for 

this new metric are 70 percent in FY 2016 and 

70 percent in FY 2017. 

In FY 2015, “Percentage of Cases That are 

Joint Agency/Task Force Investigations” with 

other law enforcement agencies was just under 

70 percent, exceeding the target of 50 percent. 

SIGTARP’s target is 70 percent for FY 2016 

and 70 percent for FY 2017. 

In FY 2015, “Percentage of Preliminary 

Investigations Converted to Full Investigations 

within 180 days” was 100 percent, exceeding 

the target of 70 percent. As SIGTARP has 

gained expertise in investigating TARP-related 

crime, it has efficiently leveraged its resources 

to handle its growing inventory and to 

expedite these investigations. As SIGTARP’s 

workforce has evolved, so has its ability to 

respond quickly to allegations and to devote 

the necessary resources. SIGTARP has 

involved prosecutors in preliminary 

investigations to ensure that allegations, if 

proven, will be prosecuted. The result is a 

greater number of preliminary investigations 

converted to full investigations within the 180-

day timeframe. Based on these efficiencies, 

future targets will increase to 80 percent in 

FY 2016 and 80 percent in FY 2017. 

Department of the Treasury - Budget in Brief 34
Treasury Inspector General for Tax Administration

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Enacted Enacted Request $ Change % Change

Audit $61,572 $65,100 $66,020 $920 1.41%

Investigations $96,638 $102,175 $103,614 $1,439 1.41%

Subtotal, Treasury Inspector General for 

Tax Administration $158,210 $167,275 $169,634 $2,359 1.41%

Offsetting Collections - Reimbursables $1,500 $1,500 $1,500 $0 0.00%

Total Program Operating Level $159,710 $168,775 $171,134 $2,359 1.40%

Direct FTE 835 859 859 0 0.00%

Reimbursable FTE 2 2 2 0 0.00%

Total FTE 837 861 861 0 0.00%

Summary

The FY 2017 President’s Budget request for 

the Treasury Inspector General for Tax 

Administration (TIGTA) will be used to provide 

high quality professional audit, investigative, 

and inspection and evaluation services that 

promote integrity, economy, and efficiency in

the administration of the Nation’s tax system.

TIGTA’s Fiscal Year 2013 – 2016 Strategic 

Plan guides program and budget activities and 

supports the Department of the Treasury’s 

FY 2014-2017 Strategic Plan (the Plan), which 

includes Strategic Goal 3: “Fairly and 

effectively reform and modernize federal

financial management, accounting, and tax 

systems.” 

Specifically, TIGTA’s vision is consistent with 

Objective 3.2 of the Plan, “Improve the 

disbursement and collection of federal funds, 

and reduce improper payments made by the U.S. 

Government.” Likewise, TIGTA’s vision to

“maintain a highly skilled, proactive, and diverse 

Inspector General organization dedicated to 

working in a collaborative environment with key 

stakeholders to foster and promote fair tax 

administration” supports Objective 3.3 of the 

Plan, “Pursue tax reform, implement the 

Patient Protection and Affordable Care Act

(ACA) and the Foreign Account Tax 

Compliance Act, and improve the execution of 

the Internal Revenue Code.” While there are a 

number of critical areas where TIGTA will

provide oversight, its FY 2017 priorities 

include: 

• Identifying opportunities to improve the 

administration of the Nation’s tax laws and 

achieve program efficiencies and cost 

savings;

• Mitigating risks associated with security 

of taxpayer data and IRS 

employees; tax systems and online services; 

identity theft; oversight of tax-exempt 

organizations; tax compliance; the 

implementation of tax law changes; and 

human capital challenges facing the IRS in

its domestic and/or international operations; 

• Develop advanced analysis and innovative 

approaches to help prevent and detect the 

flow of dollars fraudulently obtained by 

criminals and IRS employees to ensure the 

security of IRS and TIGTA data;

• Providing the IRS with the investigative 

coverage and the information necessary to 

mitigate threats against its employees, 

facilities, and data systems;

• Responding to domestic and foreign 

threats to, and attacks against, 

Department of the Treasury - Budget in Brief 35
 IRS employees, property, data infrastructure, 

and sensitive information; 

• Rapidly and effectively responding to 

attempts to impersonate the IRS for 

fraudulent purposes;

• Improving the integrity of IRS operations 

by detecting and deterring waste, fraud, 

abuse, and misconduct, including the 

unauthorized disclosure of confidential 

taxpayer information by IRS employees;

• Conducting comprehensive audits and 

inspections and evaluations that provide 

recommendations for achieving monetary 

benefits, addressing erroneous and improper 

payments, and enhancing the service the IRS 

provides to taxpayers;

• Informing the American people, Congress, 

and the Secretary of the Treasury of 

problems on a timely basis once all facts

are known; 

• Overseeing the IRS’s efforts to administer 

tax provisions of the ACA; and 

• Overseeing the IRS’s efforts to increase 

international tax compliance. 

its employees and to ensure that the IRS protects 

and secures taxpayers’ data. TIGTA’s 

inspections and evaluations provides responsive, 

timely, and cost-effective inspections and 

evaluations of challenging areas in IRS 

programs. TIGTA’s oversight is essential to the 

efficiency and equity of the IRS’s tax 

administration system. TIGTA ensures that 

taxpayers can have confidence that the IRS 

collects more than $3.1 trillion in tax revenue 

in an effective and efficient manner. 

Total resources required to support TIGTA 

activities for FY 2017 are $171,134,000, 

including $169,634,000 from direct 

appropriations and $1,500,000 from offsetting 

collections and reimbursable programs.

TIGTA FY 2017 Budget Highlights

Dollars in Thousands

TIGTA was created by Congress as a part of 

the Internal Revenue Service Restructuring and 

Reform Act of 1998 (RRA 98). TIGTA’s audits, 

investigations, inspections, and evaluations 

protect and promote the fair administration of 

the U.S. tax system. TIGTA conducts audits 

that advise the public, Congress, the Secretary 

of the Treasury, and IRS management of highrisk issues, problems, and deficiencies related to 

the administration of IRS programs and 

operations. TIGTA’s audit recommendations 

improve the administration of the federal tax 

system. TIGTA’s administrative and criminal 

investigations help to protect the IRS and

2017 Request 859 $169,634

FY 2017 Budget Adjustments 

Adjustments to Request 

Maintaining Current Level (MCLs)

Pay-Raise +$1,315,000 / +0 FTE

Funds are requested for the proposed January 

2017 pay-raise. 

Pay Annualization +$437,000 / +0 FTE

Funds are requested for annualization of the 

January 2016 pay-raise.

Treasury Inspector General for Tax 

Administration FTE Amount

FY 2016 Enacted 859 $167,275

Changes to Base:

Maintaining Current Levels (MCLs): - $2,376

Pay-Raise - $1,315

Pay Annualization - $437

Non-Pay - $624

Efficiency Savings: - ($17)

Personnel Security Background 

Investigations - ($17)

Subtotal Changes to Base - $2,359

Total FY 2017 Base 859 $169,634

Total FY 2017 Request 859 $169,634

Department of the Treasury - Budget in Brief 36
Non-Pay +$624,000 / +0 FTE

Funds are requested for inflation adjustments

in non-labor costs such as travel, contracts, rent, 

and equipment. 

Efficiency Savings

Personnel Security Background Investigations 

-$17,200 / +0 FTE

TIGTA will generate a savings from a 

reduction in the number of personnel 

investigations it will need to conduct based on 

the results of an ongoing position sensitivity 

designation review.

Explanation of Budget Activities

Audit ($66,020,000 from direct appropriations; 

$600,000 from reimbursable resources)

TIGTA’s audit work is concentrated on highrisk areas and the IRS’s progress in achieving its

strategic goals. TIGTA strategically evaluates 

IRS programs, activities, and functions so that 

resources are expended in the areas of highest

vulnerability of the Nation’s system of tax 

administration. TIGTA’s audit program 

includes both statutory audit requirements and 

specific audits identified through TIGTA’s riskassessment process. By focusing on the most 

critical areas, TIGTA identifies and 

recommends improvements that add value while

addressing high-risk tax administration issues. 

TIGTA’s audits and recommendations help

promote the economy, efficiency, and 

effectiveness of IRS programs; ensure the fair

and equitable treatment of taxpayers; and detect 

and deter waste, fraud, and abuse. 

During FY 2015, the Office of Audit (OA) 

issued 92 audit reports that included potential 

financial benefits of approximately $26.6 

billion, an increase of $10 billion over FY 2014

and affected approximately 5.3 million

taxpayer accounts. In FY 2014, several key

ACA provisions became effective. Beginning 

in Calendar Year 2014, most individuals were

required to maintain minimum essential 

coverage, and some low to

middle-income individuals will be eligible to

receive the Premium Tax Credit. As such, 

FY 2015 and FY 2016 will be significant years 

for oversight of ACA provisions. TIGTA’s 

independent oversight plays a key role in 

ensuring that these provisions are implemented 

and administered in accordance with the law 

and the intent of Congress.

Investigations ($103,614,000 from direct 

appropriations; $900,000 from reimbursable 

resources)

TIGTA has a statutory responsibility to protect 

the integrity of tax administration and to 

protect the ability of the IRS to collect revenue 

for the federal government. To accomplish this,

TIGTA investigates allegations of serious 

administrative and criminal misconduct 

committed by IRS employees. TIGTA’s 

investigative resources focus on three primary 

areas of investigation: Employee Integrity; 

Employee and Infrastructure Security; and 

External Attempts to Corrupt Tax 

Administration. 

Employee Integrity: IRS employee misconduct, 

real or perceived, can erode public trust and 

impede the IRS’s ability to enforce tax laws

effectively. This misconduct manifests itself in

a variety of ways, including misuse of IRS 

resources or authority; theft; fraud; extortion; 

taxpayer abuses; and unauthorized access to, and 

disclosure of, tax return information. During 

FY 2015, 49 percent of TIGTA’s investigative 

body of work involved alleged employee 

misconduct. TIGTA’s special agents possess the 

knowledge, skills, and expertise to investigate 

such matters. TIGTA’s investigation of 

employee misconduct conveys a message to IRS 

employees that these types of activities will

not go unchecked. TIGTA promotes employee 

integrity by conducting proactive investigative 

initiatives to detect criminal activity and other 

serious misconduct in the administration of IRS 

programs.

Department of the Treasury - Budget in Brief 37
Employee and Infrastructure Security: Physical 

violence, harassment, and intimidation of IRS 

employees pose some of the most significant 

challenges to the implementation of a fair and 

effective system of tax administration. 

TIGTA’s investigative efforts place high 

priority on its oversight of IRS employee 

safety and physical security, protecting 

approximately 91,000 employees and 601 

facilities throughout the country. TIGTA 

maintains IRS employee and infrastructure 

security by conducting investigations into 

incidents that threaten IRS employees, facilities, 

and infrastructure. The Inspector General 

Reform Act of 2008 allows TIGTA to provide 

physical security to protect IRS employees 

against external threats. TIGTA works 

aggressively and takes swift action to protect 

IRS employees, including providing armed 

escorts to IRS employees in dangerous 

situations. 

External Attempts to Corrupt Tax 

Administration: TIGTA is statutorily mandated 

to investigate external attempts to corrupt tax 

administration, which includes criminal 

misconduct by non-employees such as 

attempted bribery of IRS employees and the 

impersonation of the IRS. 

Many IRS employees are in direct contact with

taxpayers and often encounter situations in 

which a taxpayer may challenge the employee’s 

integrity with a bribe. Bribery, or attempted 

bribery, of a public official is a criminal offense, 

and an attack on the integrity of the entire IRS 

organization and the Nation’s system of tax 

administration. TIGTA is currently 

investigating nationwide IRS impersonation 

schemes in which criminals are pretending to be

IRS employees and are attempting to collect 

phantom tax liabilities from innocent taxpayers. 

In FY 2015, TIGTA received more than 

896,000 reports related to this type of contact;

and more than 5000 taxpayers have been 

defrauded out of more than $26.5 million as a

result of impersonation scams. 

In May 2015, the IRS originally reported to 

TIGTA that criminals used taxpayer-specific 

data acquired from non-IRS sources to

successfully gain unauthorized access to more 

than 100,000 tax accounts through IRS’s “Get 

Transcript” application. In August 2015, as a 

result of TIGTA’s investigative findings, the 

IRS conducted a deeper analysis in which it

identified an additional 220,000 successful 

attempts to clear the “Get Transcript” 

verification process by individuals with 

taxpayer-specific sensitive data. The updated 

review also identified an additional 170,000 

suspected attempts that failed to clear the 

authentication processes. Following TIGTA’s 

advice, the IRS disabled the “Get Transcript” 

application until this matter is investigated. As 

of February 2016, the “Get Transcript” 

application is still disabled. 

As part of its overall investigation into the data 

breach, the Office of Investigations (OI) is 

conducting an in-depth forensic review of more 

than 300,000 accounts to determine if they 

were used for any other type of identity theft. 

The investigation will also identify the 

vulnerabilities that allowed the accounts to be 

stolen and will generate the evidence necessary 

to bring the responsible individuals to justice. 

Legislative Proposals

TIGTA has no legislative proposals.

Department of the Treasury - Budget in Brief 38
TIGTA Performance by Budget Activity

Key: DISC – Discontinued

Description of Performance

• For FY 2015, OA issued 9 2 audit reports

identifying approximately $26.6 billion in

potential financial benefits (i.e., costs

savings, increased or protected revenue, 

taxpayer rights and entitlements, and 

inefficient use of resources).

• For FY 2015, TIGTA surpassed its target of 

6 8 percent of Audit Products Delivered 

when Promised to Stakeholders. TIGTA 

achieved 80 percent as a result of 

monitoring the execution of its audit 

programs. The FY 2015 actual percentage 

of Recommendations Made that Have Been 

Implemented was 92 percent. TIGTA 

exceeded its target as a result of continued 

discussions with the IRS throughout the 

audit process, both on the findings and on 

the potential recommended solutions, to

ensure that feasible alternatives were 

identified. 

• For FY 2017, OA’s performance

targets are 68 percent of Audit Products 

Delivered when Promised to Stakeholders 

and 85 percent of Recommendations Made 

that Have Been Implemented. 

• During FY 2015, TIGTA initiated 37 

proactive investigative initiatives to detect 

systemic weaknesses or potential IRS 

program vulnerabilities. TIGTA received

12,080 complaints and opened 2,726 

investigations in FY 2015. During this time 

period, TIGTA also closed 2,797 

investigations, which included 1,185 cases of 

employee misconduct referred for IRS action

and 146 cases of all types of investigations 

accepted for criminal prosecution. 

• For FY 2017, OI’s performance target is 81 

percent of Results from Investigative 

Activities.

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Audit Percentage of Audit Products 

Delivered when Promised to 

Stakeholders 

84.0 65.0 80.0 68.0 68.0

Audit Percentage of Recommendations 

Made that Have Been Implemented

87.0 89.0 92.0 85.0 85.0 

Investigations Percentage of Results from 

Investigative Activities 

90.0 92.0 93.0 81.0 81.0 

Department of the Treasury - Budget in Brief 39
Department of the Treasury - Budget in Brief 40
Community Development Financial Institutions Fund

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 to FY 2017

Budget Activity Enacted Enacted Request $ Change % Change

Community Development Financial Institutions Program $152,400 $153,423 $153,423 $0 0.00%

Bank Enterprise Award Program $18,000 $19,000 $19,000 $0 0.00%

Native American CDFI Assistance Program $15,000 $15,500 $15,500 $0 0.00%

Administration $23,100 $23,600 $26,000 $2,400 10.17%

Healthy Food Financing Initiative $22,000 $22,000 $22,000 $0 0.00%

Small Dollar Loan Program $0 $0 $10,000 $10,000 N/A

Subtotal, Community Development Financial 

Institutions Fund $230,500 $233,523 $245,923 $12,400 5.31%

User Fees $1,040 $1,059 $1,269 $210 19.83%

Recovery from Prior Years $3,924 $5,200 $5,200 $0 0.00%

Unobligated Balances from Prior Years $10,856 $5,500 $5,500 $0 0.00%

Total Program Operating Level $246,320 $245,282 $257,892 $12,610 1.79%

Direct FTE 79 79 87 8 10.13%

Reimbursable FTE 0 0 0 0 N/A

Total FTE 79 79 87 8 10.13%

Summary 

The FY 2017 Budget requests an appropriation 

of $245,923,000 for the Community 

Development Financial Institutions Fund 

(CDFI Fund) to support its mission of 

promoting economic opportunity and 

community development. 

The CDFI Fund expands the availability of 

credit, investment capital, and financial 

services in distressed urban and rural 

communities and for underserved populations. 

The CDFI Fund carries out the Community 

Development Banking and Financial 

Institutions Act of 1994, as well as certain 

programmatic provisions of the Community 

Renewal Tax Relief Act of 2000, the Housing 

and Economic Recovery Act of 2008 (HERA), 

and the Small Business Jobs Act of 2010. 

The CDFI Fund supports the creation and 

expansion of diverse Community 

Development Financial Institutions (CDFIs), 

which provide loans, investments, business 

counseling, basic banking services, and 

financial literacy training to underserved 

communities. Working primarily through 

CDFIs, the CDFI Fund facilitates business 

development, commercial real estate, housing 

development and home ownership. The CDFI 

Fund’s activities leverage billions of private 

sector investment dollars from banks, 

foundations, and other funding sources on a 

cumulative basis.

The FY 2017 Budget proposes funding for the 

CDFI Program and Native American CDFI 

Assistance (NACA) Program, the Bank 

Enterprise Award Program, the Small Dollar 

Loan Program, and the Healthy Food 

Financing Initiative (HFFI). The CDFI Fund’s

request also includes funding for the 

administration, operational support, and 

management associated with these programs 

and the New Markets Tax Credit (NMTC) 

Department of the Treasury - Budget in Brief 41
Program, the CDFI Bond Guarantee Program, 

and the Capital Magnet Fund (CMF). 

CDFI FY 2017 Budget Highlights

Dollars in Thousands

Community Development Financial 

Institutions Fund

 

FTE Amount

FY 2016 Enacted 79 $233,523

Changes to Base:

Maintaining Current Levels (MCLs): - $412

Pay-Raise - $100

Pay Annualization - $33

Non-Pay - $279

Non-Recurring Costs: - ($337)

Research and Evaluation (Data 

Collection) - ($337)

Subtotal Changes to Base - $75

Total FY 2017 Base 79 $233,598

Program Changes:

Program Increases: - $12,325

Administration 8 $2,325

Small Dollar Loan Program - $10,000

Total FY 2017 Request 87 $245,923

FY 2017 Budget Adjustments 

Maintaining Current Levels (MCLs) 

Pay-Raise +$100,000 / +0 FTE 

Funds are requested for the proposed January 

2017 pay-raise. 

Pay Annualization +$33,000 / +0 FTE 

Funds are requested for annualization of 

January 2016 pay-raise.

Non-Pay +$279,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Non-Recurring Costs 

Administration – Research and Evaluation 

(Data Collection) -$337,000 / +0 FTE 

The CDFI Fund will non-recur a portion of 

research and evaluation funding. This 

reduction will not impact on-going research 

and evaluation. 

Program Increases

Administration +$2,325,000 / +8 FTE 

This increase will allow the CDFI Fund to 

allocate an estimated $74 million in awards 

under the CMF in FY 2017 and to develop the 

Community Development Impact Measuring 

Estimator (CDIME) modeling tool. Awards 

made through the CMF program will be 

funded by annual transfers from Fannie Mae 

and Freddie Mac pursuant to HERA. 

Small Dollar Loan Program +$10,000,000 / 

+0 FTE 

The CDFI Fund requests $10 million for the 

Small Dollar Loan Program to provide CDFIs 

with Financial Assistance grants to establish 

loan loss reserve funds and Technical 

Assistance grants for capacity building. These 

awards will encourage CDFIs to address the 

issue of predatory lending in their 

communities and provide an alternative to 

payday lenders. 

Explanation of Budget Activities

Community Development Financial 

Institutions Program ($153,423,000 from 

direct appropriations) 

The CDFI Program uses federal resources to 

invest in and build the capacity of CDFIs to 

serve low-income and underserved individuals 

and communities lacking adequate access to 

affordable financial products and services. 

The CDFI Program provides monetary awards 

for financial assistance to further economic 

development (job creation, business financing, 

and commercial real estate development); 

affordable housing (housing development and 

homeownership); and community 

development financial services (provision of 

banking services to underserved communities 

and financial literacy training).

The CDFI Program also provides technical 

assistance awards to help CDFIs build their 

capacity to serve their target markets through 

the acquisition of consulting services, 

technology purchases, and training. 

Additionally, CDFI Program provides 

capacity-building initiatives that foster the

Department of the Treasury - Budget in Brief 42
development of CDFIs through training and 

technical assistance. 

New Markets Tax Credit Program ($0 from 

direct appropriations) 

The NMTC Program attracts private sector 

capital into low-income communities. 

Community Development Entities (CDEs) 

apply to the CDFI Fund for allocations of tax 

credit authority in annual competitive rounds. 

Taxable investors receive NMTCs in exchange 

for making equity investments in these CDEs, 

which in turn invest equity or debt into 

qualified businesses. In addition to awarding 

tax credit allocation authority, the CDFI Fund 

monitors CDE compliance through the terms 

of their allocation agreements. 

On December 18, 2015, Congress extended the 

authorization of the NMTC Program for $3.5 

billion per year in qualifying investments, and 

permitted the NMTC to offset the Alternative 

Minimum Tax (AMT) liability. 

Bank Enterprise Award Program 

($19,000,000 from direct appropriations) 

Through the BEA Program, the CDFI Fund 

encourages insured depository institutions to 

increase investments and services in distressed 

communities and to provide financial 

assistance to CDFIs. Organizations that 

receive BEA Program awards are required to 

reinvest those funds back into distressed 

communities.

Native American CDFI Assistance Program 

($15,500,000 from direct appropriations) 

The Native Initiatives include two 

components: (i) the NACA Program through 

which financial assistance and technical 

assistance awards are provided to build the 

capacity of new or existing Native CDFIs 

serving Native Communities; and (ii) 

complementary capacity-building initiatives 

that foster the development of Native CDFIs 

through training and technical assistance, 

strengthen their operational capacity, and 

guide them in the creation of important 

financial education and asset-building 

programs for their communities.

Healthy Food Financing Initiative 

($22,000,000 from direct appropriations) 

Through the Administration’s Healthy Food 

Financing Initiative, the CDFI Fund will build 

on program achievements in FYs 2011 - 2015 

by continuing to support and finance healthy 

food alternatives in low-income communities. 

CDFI Bond Guarantee Program ($0 from 

direct appropriations) 

The Small Business Jobs Act of 2010 (Public 

Law 111-240) created the CDFI Bond 

Guarantee Program. Bonds issued under the 

program support CDFI lending activity in 

underserved communities by providing a 

source of long-term capital. Qualified Issuers 

(CDFIs or their designees) issue bonds that are 

guaranteed by the Secretary of the Treasury 

and use the bond proceeds to make loans to 

Eligible CDFIs for eligible community and 

economic development purposes. These 

purposes include community and economic 

development financing for affordable multifamily rental housing, small businesses, 

healthcare facilities, charter schools, and 

commercial real estate in low-income or 

underserved rural areas. 

Capital Magnet Fund ($0 from direct 

appropriations) 

The Housing and Economic Recovery Act of 

2008 authorized CMF to be administered by 

the CDFI Fund. The purpose of CMF is to 

make awards to CDFIs and qualified nonprofit 

housing providers that would be leveraged to 

attract other financing sources for affordable 

housing. By statute, recipients must leverage 

CMF dollars by a factor of at least 10:1.

Department of the Treasury - Budget in Brief 43
Administration ($26,000,000 from direct 

appropriations) 

Administration encompasses the CDFI Fund’s 

operational support and management activities 

for each of the monetary award, bond 

guarantee, and tax credit programs that it 

administers. This includes finalizing the terms 

of assistance agreements with awardees, 

making disbursements, and monitoring 

awardee compliance with the terms of their 

multi-year assistance and allocation 

agreements. In addition, resources will be 

utilized for a business application 

enhancement upgrade and external program 

research evaluations. Administration funds 

will also support the non-monetary award 

programs and activities (the NMTC Program, 

CDFI and CDE certification and 

recertification) and the administration of the 

CDFI Bond Guarantee Program and the CMF. 

Legislative Proposals

Treasury requests extension of the CDFI Bond

Guarantee Program through FY 2017 and 

proposes reforms to the program to increase 

participation and ensure credit-worthy CDFIs 

have access to this important source of capital, 

while continuing to maintain strong 

protections against credit risk. Treasury 

proposes the following legislative changes to 

the CDFI Bond Guarantee Program: (i) to 

extend the program through FY 2017; (ii) to 

reduce the minimum bond issue size from 

$100 million to $25 million; (iii) to permit the 

Secretary to adjust the risk-share pool payment 

requirement, based on the borrower’s credit 

quality, from zero to four percent; (iv) to 

collect a mandatory one percent fee from all 

borrowers; and (v) to revise the relending 

account language to correct a technical 

drafting error.

CDFI Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY2017

Actual Actual Actual Target Target

Community Development 

Financial Institutions Program

CDFI - Percent of Loans & 

Investments Originated in 

Distressed communities and to 

underserved populations by 

amount of loans (Annual) %

77.1% 70.8% 80.1% 60.0% 60.0%

Administration ALL - Award Cycle Time 

(months) 6.8 7.1 8.3 7.0 7.0

Administration ALL – Affordable Housing 

(units) 26,391 32,621 27,004 29,000 29,000

New Markets Tax Credit 

Program

Community Development 

Entities' Annual Qualified Equity 

Investments In Low-Income 

Communities ($ billions)

$5.5 $4.0 $3.0 $3.5 $3.5

New Markets Tax Credit 

Program

NMTC-Percentage of Loans and 

Investments that went into 

Severely Distressed 

Communities (percentage)

78.50% 73.80% 75.20% 72.00% 72.00%

Key: DISC – Discontinued

Description of Performance

In the FY 2015 funding round of the CDFI 

Program, the CDFI Fund received applications 

from 356 organizations, requesting over $435 

million in financial and technical assistance 

awards. In addition, 33 qualified organizations 

applied for the Healthy Food Financing 

Initiative (HFFI) requesting $101 million. In 

September 2015, the CDFI Fund awarded 

more than $160 million in grants to 152 

Department of the Treasury - Budget in Brief 44
CDFIs. Additionally 11 organizations were 

awarded $22 million for HFFI. This activity 

shows the continued strong growth in demand 

for CDFI Fund Programs. 

As detailed in the CDFI Fund Performance by 

Budget Activity Table, in FY 2015, CDFI 

Program awardees reported that over 80 

percent of loans were originated in distressed 

communities and to underserved populations. 

By regulation, CDFIs must originate 60 

percent or more of their loans and investments 

in eligible distressed census tracts or to 

underserved populations. The threshold is set 

at 60 percent in recognition that CDFIs need to 

balance safety and soundness by maintaining a 

diversified portfolio. Loans in highly 

distressed areas tend to be higher risk as well 

as less efficient to originate and manage. The 

trend for FY 2012-2015 indicates that CDFI 

awardees have been successful in meeting

their mission of serving distressed 

communities and underserved populations 

while maintaining sound investment portfolio 

performance.

In FY 2015, 21 prior HFFI awardees reported 

206 HFFI investments totaling $88.3 million. 

There were 119 retail investments totaling 

over $69 million that developed 1,564,732 

square feet of new retail space for projects 

ranging from small green grocers to large 

supermarkets which served low-income, lowaccess census tracts. In addition, there were 87 

non-retail investments totaling over $19 

million in projects involving production and 

distribution, which developed 1,718,088 

square feet of space for eligible healthy food 

activities. 

In FY 2015, the application-award timeframe

was missed by more than one month because 

of a change in matching funds requirements 

under the December 2014 appropriation 

language which required supplemental 

notification to applicants and additional 

reviews of the applicant’s matching funds 

documentation. The seven-month target has 

been retained for both FY 2016 and 2017 

because the CDFI Fund has revised its internal 

policies and procedures to improve the cycle 

times for the application review and matching 

funds procedures. In addition, once the CDFI 

Fund’s new Awards Management Information 

System (AMIS) is fully deployed, the 

application cycle time should further benefit 

from the automation of application intake and 

review.

The All-Affordable Housing measure captures 

the number of affordable housing units 

developed or produced as a result of CDFI 

Fund awards, as reported by CDFI, NMTC 

and CMF program awardees. The actual 

results of 27,000 affordable housing units for 

FY 2015 fell short of the ambitious target of 

36,000 units. The target was missed due to 

changes in housing investments across 

programs. There were declines in housing 

lending by CDFI awardees largely due to a 

decline in the number of awardees focusing on 

housing (3,000 fewer units than the prior 

year), a slight decline in NMTC housing 

investments (540 fewer than the prior year) 

and a deferral of the completion of 1,300 CMF

funded housing units to 2016. A provisional 

target is retained for 2016 which does not 

factor in results from future rounds of funding 

for CMF. Please note that for CMF awards 

made in FY 2016, the outcomes will not be 

reported until FY 2018. 

The 2014 NMTC investment authority was 

allocated in FY 2015 due to delayed passage 

of the authorizing legislation. In the 2014 

round, the NMTC Program awarded $3.5 

billion in NMTC investment authority to 76 

CDEs, out of a pool of applicants requesting 

$19.9 billion. 

The FY 2015 target for Qualified Low-Income 

Community Investments (QLICIs) was set at 

$5 billion to reflect the actual annual tax credit 

Department of the Treasury - Budget in Brief 45
authority requested. The FY 2015 target was 

not met because the prior year’s tax credit 

authority had been limited to $3.5 billion. The 

2011-2013 trends reflect the effect of higher 

tax credit authority at $5 billion and the 

subsequent decrease in 2014 for QLICIs 

reflects the lower levels of tax credit authority. 

A complementary measure of program 

performance is investments in severely 

distressed communities because it measures 

impact. In FY 2015 the investments in 

severely distressed communities exceeded the 

target. This performance indicates that NMTC 

investors continue to meet their commitments 

in severely distressed communities.

Department of the Treasury - Budget in Brief 46
Financial Crimes Enforcement Network

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 to FY 2017

Budget Activity Enacted Enacted Request $ Change % Change

BSA Administration and Analysis $112,000 $112,979 $115,003 $2,024 1.79%

Subtotal, Financial Crimes Enforcement Network $112,000 $112,979 $115,003 $2,024 1.79%

Offsetting Collections - Reimbursables $3,000 $1,500 $1,500 $0 0.00%

Recovery from Prior Years $500 $500 $500 $0 0.00%

Unobligated Balances from Prior Years $50,000 $42,000 $38,000 ($4,000) -9.52%

Total Program Operating Level $165,500 $156,979 $155,003 ($1,976) -1.26%

Direct FTE 345 343 343 0 0.00%

Reimbursable FTE 1 1 1 0 0.00%

Total FTE 346 344 344 0 0.00%

Summary 

The mission of the Financial Crimes 

Enforcement Network (FinCEN) is to 

safeguard the financial system from illicit use, 

and combat money laundering and promote 

national security through the collection, 

analysis, and dissemination of financial 

intelligence and strategic use of financial 

authorities.

In carrying out its mission, FinCEN has 

numerous statutory areas of responsibility: 

developing and issuing regulations under the 

Bank Secrecy Act (BSA); enforcing 

compliance with the BSA in partnership with 

law enforcement and other regulatory partners; 

serving as the U.S. Financial Intelligence Unit 

(FIU) and maintaining a network of 

information sharing with FIUs in more than 

147 partner countries; receiving millions of 

new financial reports each year and 

maintaining a database of over 190 million 

reports; analyzing and disseminating financial 

intelligence to federal, state, and local law 

enforcement, federal and state regulators, 

foreign FIUs, and industry; and bringing 

together the disparate interests of law 

enforcement, FIUs, regulatory partners, and 

industry. 

FinCEN’s priorities include:

• Target examination and enforcement 

efforts to high risk and priority areas,

with increased focus on money 

services businesses;

• Expand understanding and analysis of 

illicit networks, institutions, 

jurisdictions, and schemes, with 

emphasis on national security threats 

and terrorist groups such as ISIL;

• Ensure the BSA regulatory structure 

effectively and efficiently targets illicit

financing risks;

• Manage the efficient collection,

processing, and retrieval of BSA data; and

• Foster strong public-private partnerships 

with the financial industry.

Department of the Treasury - Budget in Brief 47
FinCEN FY 2017 Budget Highlights

Dollars in Thousands 

Financial Crimes Enforcement Network 

FTE Amount

FY 2016 Enacted 343 $112,979

Changes to Base:

Maintaining Current Levels (MCLs): - $1,824

Pay-Raise - $528

Pay Annualization - $175

Non-Pay - $1,121

Efficiency Savings: - ($1,300)

Efficiency Savings - ($750)

Commercial Database Contract Savings - ($550)

Subtotal Changes to Base - $524

Total FY 2017 Base 343 $113,503

Program Changes:

Program Increases:

 National Security Response Capacity - $1,500

Total FY 2017 Request 343 $115,003

FY 2017 Budget Adjustments 

Adjustments to Request

Maintaining Current Levels (MCLs) 

Pay-Raise +$528,000 / +0 FTE 

Funds are requested for the proposed January 

2017 pay-raise.

Pay Annualization +$175,000 / +0 FTE 

Funds are requested for annualization of the 

January 2016 pay-raise.

Non-Pay +$1,121,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment. 

Efficiency Savings 

Efficiency Savings -$750,000 / +0 FTE 

These efficiencies are a result of reductions in 

travel, printing, and savings realized through 

re-evaluated or negotiated contracts.

Commercial Database Contract Savings 

-$550,000 / +0 FTE 

These savings are the result of renewed 

contract pricing for open source commercial 

databases used in FinCEN’s intelligence 

analysis. These savings resulted from 

Treasury’s strategic sourcing initiative that 

renegotiated contract pricing on several 

commercial databases and from reassessment 

of usage categories. 

Program Increases

National Security Response Capacity 

+$1,500,000 / +0 FTE 

FinCEN will use these funds to sustain 

increased contractor support for FinCEN’s 

intelligence analysis and reporting for efforts 

against ISIL. In FY 2015, FinCEN 

temporarily increased the number of contractor 

personnel who process alerts on BSA filings 

and develop reports for dissemination to 

FinCEN customers in law enforcement, the 

intelligence community, and foreign FIUs. 

These customers indicate the enhanced level of 

support has aided investigations and increased 

their capacity to address an increasing number 

of threats from groups like ISIL. The demand 

for FinCEN’s financial intelligence has 

solidified the need for the bureau to continue 

to support critical national security activities 

whenever they arise. In many cases, FinCEN 

is the only link between the intelligence 

community and the financial intelligence 

maintained pursuant to the reporting 

obligations under the BSA. The information 

available from FinCEN’s new capability to 

provide red flag alerts on BSA filings has 

become extremely valuable to the intelligence 

and law enforcement community. In order to 

address emerging issues and provide the level 

of support that law enforcement and the 

intelligence community have come to rely on, 

FinCEN needs additional funding to continue 

the current contractor support.

Explanation of Budget Activities

BSA Administration and Analysis 

($115,003,000 from direct appropriations,

and $1,500,000 from reimbursable resources) 

The programs funded by this budget activity 

support Treasury Strategic Goal 4: “Safeguard 

the financial system and use financial 

measures to counter national security threats.” 

This activity comprises FinCEN’s efforts to 

develop and issue regulations under the BSA; 

enforce compliance with the BSA in 

partnership with regulatory partners and as the 

sole BSA regulator across numerous 

Department of the Treasury - Budget in Brief 48
industries; receive BSA reports and maintain a 

database; analyze and disseminate financial 

intelligence to federal, state, and local law 

enforcement, federal and state regulators, 

foreign FIUs, and industry; and serve as the 

U.S. FIU and maintain a network of 

information sharing with FIUs in partner 

countries. The goal owner for this budget 

activity is the Director of FinCEN.

Legislative Proposals

FinCEN has no legislative proposals. 

FinCEN Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

BSA Administration and Analysis Percentage of Users Finding That 

the Financial Intelligence Collected 

by FinCEN Pursuant to its 

Regulations Provides Valuable 

Information to Safeguard the 

Financial System, Combat Money 

Laundering, and Counter Terrorist 

Financing

80.0 81.0 83.0 84.0 85.0

BSA Administration and Analysis Percentage of Stakeholders Finding 

FinCEN’s Information Sharing Has 

Contributed to Their Organization’s 

Responsibilities

N/A 89.0 91.0 92.0 92.0

BSA Administration and Analysis Percentage of Users Satisfied with 

FinCEN Information Sharing 

Systems

N/A N/A 80.0 80.0 80.0

Key: DISC – Discontinued

Description of Performance

FinCEN tracks the percentage of users finding 

that financial intelligence collected by FinCEN 

pursuant to its regulations provides valuable 

information to safeguard the financial system, 

combat money laundering, and counter 

terrorist financing. The survey looks at the 

value of FinCEN data, such as whether the 

data provided unknown information, 

supplemented or expanded known 

information, verified information, helped 

identify new leads, opened a new investigation 

or examination, supported an existing 

investigation or examination, or provided 

information for an investigative or 

examination report. In FY 2015, FinCEN 

surpassed its target of 82 percent with 83 

percent finding value. FinCEN attained this 

result by placing greater emphasis on both inperson and online training that will better 

assist users in understanding and utilizing the 

new FinCEN Query tool for their unique cases 

and situations. 

FinCEN measures the percentage of 

stakeholders finding FinCEN’s information 

sharing has contributed to their organization’s 

responsibilities. The measure examines the 

survey responses of customers who have had 

contact with FinCEN to exchange information, 

including industry, regulators, and law 

enforcement, both domestic and foreign. This 

is a fairly new composite measure that consists 

of the following questions: call center 

guidance response was understandable; rate 

the usefulness of the 314(a) requests FinCEN 

processed on behalf of your agency for 

investigations of financial crimes or money 

laundering; how satisfied are you with the 

information sharing you have with FinCEN; 

and over the past 12 months how satisfied are 

you with FinCEN. This is a meaningful 

measure as it tracks FinCEN’s efforts to share 

Department of the Treasury - Budget in Brief 49
financial intelligence. In FY 2015, FinCEN 

surpassed its target of 89 percent with 91 

percent finding the information sharing 

helpful. FinCEN was able to attain this 

performance by maximizing the sharing of 

financial intelligence between FinCEN and its 

domestic and foreign partners in government 

and private industry. 

FinCEN tracks the percentage of users 

satisfied with FinCEN information sharing 

systems. The measure is based on survey 

responses and represents user satisfaction with 

the BSA E-Filing System, FinCEN Query, and 

the Egmont Secure Web. Starting with

industry, FinCEN collects and maintains BSA 

reports filed by financial institutions and other 

filers. In turn, FinCEN provides authorized 

users (including Treasury and the Office of 

Terrorism and Financial Intelligence) access to 

a query system containing 11 years of BSA 

data. FinCEN also provides foreign FIUs in 

the Egmont Group with a secure system for 

exchanging financial intelligence to combat 

money laundering and terrorist financing. 

This measure is meaningful because the 

technology allows authorized persons to more 

readily access BSA information and better 

enables them to conduct investigations more 

efficiently and effectively. In FY 2015, 

FinCEN exceeded its target of 78 percent with 

80 percent of the users satisfied with 

information sharing systems. During 

FY 2015, FinCEN continued to address critical 

system issues and make minimal enhancement 

requests as part of its ongoing operations and 

maintenance.

Department of the Treasury - Budget in Brief 50
Alcohol and Tobacco Tax and Trade Bureau

Program Summary by Budget Activity

Dollars in thousands

FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Enacted Enacted Request $ Change % Change

Collect the Revenue $52,721 $52,785 $53,560 $775 1.47%

Protect the Public $47,279 $53,654 $52,879 ($775) -1.44%

Subtotal, Alcohol and Tobacco Tax and 

Trade Bureau $100,000 $106,439 $106,439 $0 0.00%

Offsetting Collections - Reimbursables $7,022 $6,992 $6,912 ($80) -1.14%

Appropriations Transferred from IRS Program 

Integrity Cap Adjustment $0 $0 $5,000 $5,000 NA

Total Program Operating Level $107,022 $113,431 $118,351 $4,920 4.34%

Direct FTE 473 494 494 0 0.00%

Reimbursable FTE 10 10 10 0 0.00%

Appropriations Transferred from IRS Program 

Integrity Cap Adjustment FTE 0 0 35 35 NA

Total FTE 483 504 539 35 6.94%

Summary

The Alcohol and Tobacco Tax and Trade 

Bureau (TTB) serves as the Nation’s primary 

Federal authority in the taxation and regulation 

of the alcohol and tobacco industries. TTB is 

responsible for the administration and 

enforcement of the Internal Revenue Code 

associated with the collection of excise taxes 

on alcohol, tobacco, firearms, and 

ammunition, and the Federal Alcohol 

Administration Act, which provides for the 

regulation of the alcohol beverage industry to 

protect U.S. consumers and ensure a fair and 

competitive marketplace for U.S. businesses.

In FY 2017, TTB will continue to focus its 

efforts on enforcing compliance with alcohol, 

tobacco, firearms, and ammunition laws and 

regulations in the interest of collecting all 

appropriate excise taxes and promoting a 

marketplace for alcohol beverages that 

complies fully with Federal production, 

labeling, advertising, and marketing standards. 

The FY 2017 President’s Budget request 

enables TTB to continue the programs and 

activities necessary to meet its strategic goals 

of collecting revenue and protecting the 

public.

Total resources required to support TTB 

activities for FY 2017 are $118,351,000, 

including $106,439,000 from direct 

appropriations, $6,912,000 from other 

offsetting collections and reimbursable 

programs, and $5,000,000 in appropriations 

transferred from other accounts.

TTB FY 2017 Budget Highlights

Dollars in Thousands

Alcohol and Tobacco Tax and Trade 

Bureau FTE Amount

FY 2016 Enacted 494 $106,439

Changes to Base:

Maintaining Current Levels (MCLs): - $1,562

Pay-Raise - $598

Pay Annualization - $199

Non-Pay - $765

Other Adjustments: - ($1,562)

IT Investments in Application Systems - ($1,562)

Subtotal Changes to Base - $0

Total FY 2017 Base 494 $106,439

Program Changes:

Program Increases: 35 $5,000

Alcohol and Tobacco Enforcement 

Program 35 $5,000

Total FY 2017 Operating Level 529 $111,439

Program Integrity Cap Adjustment 

Included in IRS Budget Request - ($5,000)

Total FY 2017 Net Appropriation Request 529 $106,439
FY 2017 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$598,000 / +0 FTE

Funds are requested for the proposed January 

2017 pay-raise.

Pay Annualization +$199,000 / +0 FTE

Funds are requested for annualization of the 

January 2016 pay-raise.

Non-Pay +$765,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment.

Other Adjustments

IT Investments in Application Systems

-$1,562,000 / -0 FTE

TTB will defer additional IT enhancements for 

its labeling program modernization effort 

while continuing to retain the additional label 

specialists, formula specialists, and chemists 

hired to improve processing times of labels 

and formulas.

Program Increases

Alcohol and Tobacco Enforcement Program 

+$5,000,000 / +35 FTE

The FY 2017 President’s Budget includes a 

proposal to amend section 251 of the Balanced 

Budget and Emergency Deficit Control Act of 

1985, as amended, to provide a program 

integrity cap adjustment of $5 million for 

TTB’s tax enforcement and compliance 

program to narrow the tax gap in the tobacco 

and alcohol industries and reduce the deficit 

through increased revenue collections. This 

specific funding request is included under the 

IRS budget, which includes the tax 

enforcement and compliance program integrity 

cap adjustment for both the IRS and TTB.

Under the TTB budget, this item is being 

reported as “Appropriations Transferred from 

IRS Program Integrity Cap Adjustment.”

The proposed cap adjustment for TTB tax 

enforcement and compliance activities 

includes $5 million in new revenue-producing 

tax compliance initiatives in FY 2017 and $5 

million in additional new initiatives each fiscal 

year from 2018 through 2021. TTB will target 

known points in the supply chain that are 

susceptible to diversion activity and prioritize 

forensic audits and investigations of high-risk 

activity and entities in the alcohol and tobacco 

trade. Because these enforcement initiatives

must be sustained over time to maximize their 

potential taxpayer returns, the total above-base 

cap adjustment including inflation is $189

million over the 10-year period. Over this 

same time period, these investments will 

generate an estimated $338 million in 

additional tax revenue over the 10-year period.

The net savings from these investments is 

$149 million.

Program Integrity Cap Adjustment Included 

in IRS Budget Request -$5,000,000 / -0 FTE

This adjustment ensures that the program 

increase for TTB’s Alcohol and Tobacco 

Enforcement Program is reflected only once in 

the FY 2017 President’s Budget as part of the

IRS’s program integrity cap adjustment.

Explanation of Budget Activities

Collect the Revenue ($53,560,000 from direct 

appropriations, $3,594,000 from 

reimbursable resources, and a transfer of 

$5,000,000)

This budget activity includes all tax 

processing, verification, enforcement, and 

outreach efforts related to administering the 

Federal excise tax on alcohol, tobacco, 

firearms, and ammunition products. TTB 

regulates and collects taxes from distilleries, 

breweries, bonded wineries, bonded wine 

cellars, manufacturers of cigarette papers and 

tubes, manufacturers of tobacco products, and 

manufacturers and importers of firearms and 

ammunition. In ensuring a level playing field 

for all those engaged in the trade of these 

strictly regulated commodities, TTB also takes 
appropriate enforcement action to detect and 

address diversion activity and ensure all 

products sold in the marketplace are properly 

taxpaid. In FY 2015, excise tax collections 

reached $13.6 billion for tobacco products, 

nearly $8 billion for alcohol beverage 

products, and $638 million for firearms and 

ammunition. This budget activity supports 

Treasury’s strategic objective to improve the 

execution of the tax code and TTB’s strategic 

goal of ensuring that industry remits the proper 

Federal tax on these products.

Protect the Public ($52,879,000 from direct 

appropriations, $3,318,000 from 

reimbursable resources)

This budget activity funds the programs that 

ensure the integrity of the products and 

industry members in the marketplace by 

promoting compliance with Federal alcohol 

and tobacco laws and regulations by the 

approximately 76,000 businesses that hold a 

TTB permit or registration. This budget 

activity supports Treasury’s strategic objective 

to facilitate commerce through trusted and 

secure U.S. currency, products, and services 

and TTB’s strategic goal of ensuring that 

alcohol and tobacco industry operators meet 

permit qualifications, and alcohol beverage 

products comply with Federal production, 

labeling, and marketing requirements.

Legislative Proposals

TTB has no legislative proposals.

TTB Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Collect the Revenue Amount of Revenue Collected Per 

Program Dollar

457.0 457.0 437.0 400.0 400.0

Collect the Revenue Percent of Voluntary Compliance from 

Large Taxpayers in Filing Tax Payments 

Timely (In Terms of Revenue)

92.0 90.0 88.0 92.0 94.0

Protect the Public Percent of Electronically Filed Permit 

Applications

70.0 79.0 84.0 87.0 89.0

Protect the Public Percentage of Permit Applications 

Processed with Service Standards

50.0 58.0 47.0 85.0 85.0

Protect the Public Customer Satisfaction Rate with TTB 

Permitting Process

N/A B 76.0 80.0 80.0

Protect the Public Percent of Electronically Filed Label and 

Formula Applications

90.0 93.0 94.0 95.0 95.0

Protect the Public Percentage of Alcohol Beverage Label 

and Formula Applications Processed 

within Service Standards

49.0 67.0 75.0 85.0 85.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

The bureau continues to collect the Federal

excise taxes due on its regulated commodities 

in a highly efficient manner, and continues to 

enforce compliance with alcohol and tobacco 

laws and regulations. During FY 2015, TTB 

met three out of seven of its targeted 

performance goals, and made substantial 

progress in its initiatives intended to improve

performance in all other performance metrics. 

The bureau plans to continue to monitor its 

performance, and will use performance 

information to improve the effectiveness of its 

programs.
The investments in the Collect the Revenue 

activity resulted in the following performance 

highlights and accomplishments during FY 

2015:

• TTB collected $22.3 billion in excise taxes 

and other revenues from nearly 11,700

taxpayers in the alcohol, tobacco, firearms, 

and ammunition industries. The return on 

investment for the Collect the Revenue 

program was $437 for every $1 expended 

on collection activities.

• In four years of operating, TTB’s Criminal 

Enforcement program has opened a total of 

91 criminal cases, with identified liabilities 

of over $551 million in estimated alcohol, 

tobacco, firearms, and ammunition excise 

taxes and approximately $124 million in 

criminal seizures. Further, TTB has 

maintained a 100 percent conviction rate 

on cases fully resolved through the legal 

system.

• TTB completed approximately 400 audits, 

examinations, and revenue investigations, 

which contributed to the identification of 

additional tax revenue of more than $57

million.

• TTB processed $350 million in cover-over 

payments to Puerto Rico and the U.S. 

Virgin Islands. Federal excise taxes 

collected on rum produced in Puerto Rico 

and the Virgin Islands that are 

subsequently imported into the United 

States are “covered-over,” or paid into the 

treasuries of Puerto Rico and the U.S. 

Virgin Islands.

• TTB processed $307 million in drawback 

claims. Under current law, persons who 

use nonbeverage alcohol in the 

manufacture of medicines, food products, 

flavors, extracts, or perfume and other nonpotable products may be eligible to claim 

drawback of excise taxes paid on distilled 

spirits used in their products.

The investments in the Protect the Public 

activity resulted in the following performance 

highlights and accomplishments during

FY 2015:

• TTB issued nearly 136,000 Certificate of 

Label Approvals (COLAs) to ensure 

compliance with the FAA Act provisions 

that prevent consumer deception. TTB also 

achieved a 94 percent electronic filing rate 

for alcohol beverage label and formula 

applications. Federal law prohibits the 

import or domestic bottling of an alcohol 

beverage without an approved COLA, 

making this TTB service integral to U.S. 

business operations.

• TTB issued over 5,450 Federal permits, 

primarily to new alcohol beverage 

producers, importers, and wholesalers. A 

TTB permit or registration is required 

before a business can lawfully operate in 

the alcohol and tobacco industries. TTB 

ensures a fair and lawful marketplace and 

protects consumers by screening permit 

applicants to ensure only qualified persons 

engage in operations in the alcohol and 

tobacco industries.

• TTB completed more than 580 field 

investigations of industry members in the 

areas of permit qualification, consumer 

complaints, trade practice violations, and 

product integrity verifications, all of which 

serve the bureau’s dual mission of revenue 

collection and consumer protection.
Fiscal Service

Program Summary by Budget Activity

Dollars in Thousands

Summary

The Bureau of the Fiscal Service (Fiscal 

Service) is focused on maximizing 

efficiencies, transparency, and accountability 

with the goal of transforming governmentwide financial management and the delivery of 

shared services. These themes are reinforced 

through Strategic Goals that promote 

leadership and innovation, an engaged and 

highly effective workforce, delivery of 

exceptional programs and services, data 

transparency and usefulness, and the 

expansion of shared services. 

Fiscal Service FY 2017 Budget Highlights

FY 2017 Budget Adjustments

Adjustments to Request

Base Realignment

Technical FTE Adjustment +$0 / +108 FTE 

Maintaining Current Level (MCLs)

Pay-Raise +$2,295,000 / +0 FTE 

Funds are requested for the proposed January 

2017 pay-raise.

Pay Annualization +$620,000 / +0 FTE 

Funds are requested for annualization of the 

January 2016 pay raise.

Non-Pay +$3,117,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent, 

postage, supplies, and equipment.

Efficiency Savings 

Program Efficiencies -$1,935,000 / -30 FTE 

Anticipated savings realized from reduced 

programmatic and FTE requirements to align 

with estimated operating levels.

Dollars in Thousands

Bureau of the Fiscal Service FTE Amount

FY 2016 Enacted 1,586 $363,850 

Changes to Base

Base Realignment 108 $0 

Technical FTE Adjustment 108 $0 

Maintaining Current Levels (MCLs) $6,032 

Pay-Raise $2,295 

Pay Annualization $620 

Non-Pay $3,117 

Efficiency Savings (30) ($1,935)

Program Efficiencies (30) ($1,935)

Total FY 2017 Base 1,664 $367,947 

Program Changes 

Program Decreases ($14,890)

DATA Act Implementation ($10,780)

Rent Savings ($4,110)

Total FY 2017 Request 1,664 $353,057 

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Enacted Enacted Request $ Change % Change

Accounting and Reporting $104,725 $125,752 $114,167 ($11,585) -9.21%

Collections $35,029 $38,798 $40,225 $1,427 3.68%

Payments $120,912 $118,454 $115,141 ($3,313) -2.80%

Retail Securities Services $76,819 $70,038 $71,186 $1,148 1.64%

Wholesale Securities Services $10,699 $10,808 $12,338 $1,530 14.16%

Subtotal, Fiscal Service $348,184 $363,850 $353,057 ($10,793) -2.97%

Offsetting Collections -

Reimbursables $277,674 $292,381 $268,486 ($23,895) -8.17%

Total Program Operating Level $277,674 $656,231 $621,543 ($34,688) -5.29%

Direct FTE 1,636 1,586 1,664 78 4.92%

Reimbursable FTE 714 701 488 -213 -30.39%

Total FTE 2,350 2,287 2,152 -135 -5.90%

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. 

Please see Section 4B of the Congressional Justification for additional information.

Department of the Treasury - Budget in Brief 55
Program Decreases

DATA Act Implementation -$10,780,000 / 

+0 FTE 

With the implementation of the DATA Act 

anticipated to be well underway, it is expected 

that Fiscal Service will be able to decrease the 

funding needed to complete the balance of the 

government-wide legislative requirements.

Rent Savings -$4,110,000 / +0 FTE 

With the final closeout of the Emeryville, 

California lease, Fiscal Service is realizing the 

last portion of the Payment Center Closure 

savings.

Explanation of Budget Activities

Accounting and Reporting ($114,167,000 

from direct appropriations, $13,344,000 from 

reimbursable resources) 

The Accounting and Reporting activity 

consists of three programs: Government 

Agency Investment Services, Governmentwide Accounting and Reporting, and Summary 

Debt Accounting. In prior budget 

submissions, these three programs were 

separate budget activities. Fiscal Service has 

combined the three programs into one budget 

activity due to their commonalities. 

Additionally, all three support the Treasury 

Strategic Goal Three to “Fairly and effectively 

reform and modernize the federal financial 

management, accounting, and tax systems.” 

The Government Agency Investment Services 

program issues, services, and redeems 

Government Account Series securities for 

federal agencies that have legislative authority 

to invest, administers State and Local 

Government Series securities and offers a 

flexible investment alternative for state and 

local governments to refinance their 

outstanding tax-exempt debt, and represents 

Treasury’s role in the federal loan program.

The Government-wide Accounting and 

Reporting (GWA) activity accounts for the 

monetary assets and liabilities of the Federal 

Government. It also works with federal 

agencies to adopt uniform accounting and 

reporting standards and provides support, 

guidance, and training to assist federal 

program agencies in improving their 

Government-wide accounting and reporting 

responsibilities. GWA gathers and publishes 

government-wide financial information in the 

Daily Treasury Statement, the Monthly 

Treasury Statement and the Financial Report 

of the United States Government that are used 

in establishing fiscal and debt management 

policies and by the public and private sectors 

to monitor the government’s financial status. 

The Summary Debt Account (SDA) 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 

Treasury’s annual Agency Financial Report. 

SDA also consistently receives unqualified 

opinions on the Schedules of the Federal Debt. 

Collections ($40,225,000 from direct 

appropriations, $4,869,000 from 

reimbursable resources) 

The Collections Program supports Treasury’s 

Strategic Goal Three to “Fairly and effectively 

reform and modernize the federal financial 

management, accounting and tax systems”

which includes the objective “to improve the 

disbursement and collection of federal funds 

and reduce improper payments made by the 

U.S. Government.” The Fiscal Service 

manages the collection of federal revenues 

such as individual and corporate income tax 

deposits, custom 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.

Department of the Treasury - Budget in Brief 56
Debt Collection ($0 from direct 

appropriations, $151,934,000 from 

reimbursable resources)

The Debt Collection Program supports 

Treasury Strategic Goal Three to “Fairly and 

effectively reform and modernize the federal 

financial management, accounting and tax 

systems” which includes the objective “to 

improve the disbursement and collection of 

federal funds and reduce improper payments 

made by the U.S. Government.” Fiscal 

Service collects delinquent federal, state, and 

child support debt by providing centralized 

debt collection, oversight, and operational 

services to federal program agencies and states 

pursuant to the Debt Collection Improvement 

Act of 1996 (DCIA) and related legislation. 

The Fiscal Service uses two debt collection 

programs: Treasury Offset Program (TOP) 

and Cross-Servicing.

Payments ($115,141,000 from direct 

appropriations, $88,858,000 from 

reimbursable resources) 

The Payments activity issues and distributes 

payments, develops and implements federal 

payment policy and procedures, promotes the 

use of electronics in the payment process, and 

assists agencies in converting payments from 

paper checks to Electronic Funds Transfer. 

This activity also includes controlling and 

providing financial integrity to the payments 

process through reconciliation, accounting, 

and claims activities. In addition, Fiscal 

Service collects monies from those parties 

liable for fraudulent or otherwise improper 

negotiation of government checks. 

The Do Not Pay Business Center (DNP) 

provides a single centralized point of entry to 

access timely, reliable, and actionable data and 

information that can help identify, prevent, 

detect, and recover improper payments 

throughout the payment life cycle while 

protecting individuals’ privacy. DNP provides 

agencies insights and analytics based on 

reviews of multiple payment streams. 

Additionally, the DNP working system is 

integrated into the Treasury payment stream, 

enabling real-time at payment matching with 

selected data sources.

Retail Securities Services ($71,186,000 from 

direct appropriations, $8,080,000 from 

reimbursable resources) 

The Retail Securities Services (RSS) Program 

offers simple, safe, and affordable securities 

that enable Americans to invest and save for 

their future. The program serves more than 50 

million investors by processing millions of 

transaction annually. In support of the 

President’s initiative to help millions of 

Americans start saving for retirement, myRA, a 

new retirement savings account following 

Roth Individual Retirement Account rules, was 

launched in FY 2015. 

Wholesale Securities Services ($12,338,000 

from direct appropriations, $1,400,000 from 

reimbursable resources) 

The Wholesale Securities Services program is 

responsible for the announcement, auction, 

issuance and settlement of marketable 

Treasury bills, notes, bonds and Treasury 

Inflation-Protected Securities. It also oversees 

an infrastructure that provides for the transfer, 

custody and redemption of all Treasury 

marketable securities that are purchased 

mostly by commercial market participants.

Legislative Proposals

New for FY 2017 President’s Budget 

1. Option to access the National Directory 

of New Hire Data via the Do Not Pay 

Business Center

The 2017 Budget includes a package of 

proposals to allow additional programs and 

agencies authority to access the National 

Directory of New Hire Data, a federal 

database of employment and 

unemployment insurance information 

administered by the Office of Child 

Department of the Treasury - Budget in Brief 57
Support Enforcement within the 

Department of Health and Human 

Services. Access to this data is tightly 

controlled by statute, and HHS implements 

strong privacy, confidentiality, and 

security protections to protect the data 

from unauthorized use or disclosure. 

Re-proposed from FY 2016 President’s 

Budget 

1. Increase delinquent state income tax 

debt collections by allowing offset of 

federal income tax refunds to collect 

delinquent state income taxes for out-ofstate residents. Estimated collections: 

$2.3 billion in state taxes over 10 years (no 

federal revenue) 

2. Reduce costs for states collecting 

delinquent income tax obligations by 

allowing states to send notices of intent 

to offset federal tax refunds to collect 

state income tax obligations by regular 

first-class mail, rather than by certified 

mail. Estimated savings: $202.4 million 

over 10 years (no federal revenue)

3. Increase delinquent federal non-tax debt 

collections by authorizing 

administrative bank garnishment for 

non-tax debts of commercial entities. 

Estimated Collections: $320 million in 

commercial debts over 10 years

4. Increase and streamline recovery of 

unclaimed assets owed to the United 

States by authorized Treasury to locate 

and recover assets of the United States 

and to retain a portion of amounts 

collected to pay for the costs of the 

recovery. Estimated recoveries $85 

million over 10 years

Fiscal Service Performance by Budget Activity

Description of Performance

Accounting and Reporting: In FY 2015 the 

Fiscal Service achieved 99.5 percent timely 

provision of Government-wide Accounting 

reports. These reports include the Daily 

Treasury Statement, Monthly Treasury 

Statement, and Consolidated Financial Report. 

The Fiscal Service continues to maintain the 

established process of validating and 

reconciling data with reporting sources such as 

Payment Centers, federal program agencies, 

and various electronic deposit and payment 

applications. The bureau will continue 

modernization efforts to ensure the timeliness 

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Collections

Percentage Collected Electronically of Total 

Dollar Amount of Federal Government 

Receipts

97 98 98 98 98

Debt Collection Amount of Delinquent Debt Collected Through 

All Available Tools ($ billions) 7.02 6.91 7.28 7.36 7.56

Accounting and 

Reporting

Percentage of Government-Wide Accounting 

Reports Issued Timely 100 100 99.5 100 100

Payments Percentage of Treasury Payments and 

Associated Information Made Electronically

92.5 94.4 94.8 95 95

Retail Securities 

Services

Cost Per Customer Assisted Transaction N/A N/A N/A N/A B

Retail Securities 

Services

Cost per Electronic Transaction N/A N/A N/A N/A B

Wholesale Securities 

Services

Percent of Auction Results Released 

Accurately

99.6 99.3 97 100 100

Key: DISC - Discontinued

Department of the Treasury - Budget in Brief 58
of these reports and anticipates it will achieve 

the 100 percent target for FY 2016 and 

FY 2017. 

Collections: The measure, Percentage 

Collected Electronically of Total Dollar 

Amount of Federal Government Receipts, 

refers to the dollar value of collections 

received (settled) electronically. In FY 2015, 

98 percent of revenue collections were settled 

electronically. The Fiscal Service expects to 

maintain an electronics collections rate of at 

least 98 percent in FY 2016 and FY 2017. 

Debt Collection: In FY 2015, the Fiscal 

Service collected $7.28 billion in delinquent 

debt. The goal for FY 2016 and FY 2017 is to 

collect $7.36 billion and $7.56 billion, 

respectively, in delinquent debt by expanding 

the use of the administrative wage garnishment 

collection tool, enhancing the use of analytics, 

and proposing 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.

Payments: The measure Percentage of 

Treasury Payments and Associated 

Information Made Electronically supports 

Treasury Strategic Goal Three to “Fairly and 

effectively reform and modernize the federal 

financial management, accounting and tax 

systems”. Due to the continued success of the 

Go Direct® and Direct Express® programs and 

implementation of the All Electronic Treasury 

priority, Fiscal Service has issued 98 percent 

of its benefits payments and 94.8 percent of its 

total payments via EFT. Fiscal Service 

expects to achieve its targets in FY 2016 and 

FY 2017 by expanding electronic conversion 

efforts to additional benefits agencies and 

payment types such as vendor miscellaneous 

payments and federal tax refunds.

Retail Securities Services: Fiscal Service will 

add new performance measures in FY 2017 to 

support Treasury’s goal of promoting savings 

and the bureau’s goal to serve as a catalyst for 

effective government through initiative and 

innovation. The Cost per Electronic 

Transaction and Cost per Customer Assisted 

Transaction measures will demonstrate 

investor self-service and customer service 

efficiency, respectively, for all securities 

currently offered as well as future offerings. 

Fiscal Service plans to establish targets for 

each measure in FY 2016 and meet those 

targets by maintaining a skilled customer 

workforce and streamlining operations to 

effectively manage costs.

Wholesale Securities Services: The accurate 

release of auction results is critical to the 

success of the Wholesale Securities Services 

Program. An emphasis on accuracy ensures 

preservation of public confidence in Treasury 

securities and stability of the financial market. 

Therefore, in FY 2015, Fiscal Service released 

99.6 percent of auction results accurately. 

Fiscal Service anticipates meeting its future 

year targets of 100 percent through ongoing 

business process reviews and regularly 

scheduled contingency planning and mock 

auction exercises.

Department of the Treasury - Budget in Brief 59
Department of the Treasury - Budget in Brief 60
Internal Revenue Service

Program Summary by Appropriations Account and Budget Activity

FY 2015 FY 2016 FY 2017

Budget Activity Actuals Enacted1 Request $ Change % Change 

Taxpayer Services $2,173,684 $2,333,376 $2,406,318 $72,942 3.13%

Pre-filing Taxpayer Assistance and Education 609,196 629,920 643,197 13,277 2.11%

Filing and Account Services 1,564,488 1,703,456 1,763,121 59,665 3.50%

Enforcement $4,767,563 $4,864,936 $5,216,263 $351,327 7.22%

Investigations 601,665 604,620 714,208 109,588 18.13%

Exam and Collections 4,018,292 4,108,566 4,347,684 239,118 5.82%

Regulatory 147,606 151,750 154,371 2,621 1.73%

Operations Support $3,601,436 $3,746,688 $4,314,099 $567,411 15.14%

Infrastructure 833,846 832,543 895,094 62,551 7.51%

Shared Services and Support 1,126,230 1,141,485 1,197,954 56,469 4.95%

Information Services 1,641,360 1,772,660 2,221,051 448,391 25.29%

Business Systems Modernization $107,745 $290,000 $343,415 $53,415 18.42%

Subtotal Internal Revenue Service $10,650,428 $11,235,000 $12,280,095 $1,045,095 9.30%

Reimbursables 103,474 133,987 140,686 6,699 5.00%

Offsetting Collections - Non Reimbursables 10,314 42,797 44,937 2,140 5.00%

User Fees 438,557 509,309 399,730 (109,579) -21.52%

Recovery from Prior Years 1,908 

Unobligated Balances from Prior Years 294,625 453,357 384,544 (68,813) -15.18%

Transfers In/Out2 7 (5,000) (5,000)

Total Program Operating Level $11,499,313 $12,374,450 $13,244,992 $870,542 7.03%

Direct FTE 78,107 81,572 84,803 3,231 3.96%

Reimbursable FTE 612 643 675 32 4.98%

Offsetting Collections - Non Reimbursables 11 12 12 

User Fee FTE 1,344 876 1,530 654 74.66%

Unobligated Balances from Prior Years 428 

Resources from Other Accounts3 290 2 2 

Total FTE 80,792 83,105 87,022 3,917 4.71%

Dollars in Thousands

FY 2016 TO FY 2017

1

Resources from Transfers In/Out include a FY 2015 transfers between IRS and the Office of National Drug Control Policy 

(ONDCP) High Intensity Drug Trafficking Area (HIDTA) Program (obligations $7K), and a 2017 transfer out to the Alcohol 

and Tobacco Tax and Trade Bureau (TTB) ($5M).

2

Resources from Other Accounts include Other Direct FTE funded by the Department of Health and Human Services (287 FTE 

in FY 2015) and the Federal Highway Administration (3 FTE projected for FY 2015, and 2 FTE projected for FY 2016 and 

FY 2017).

1

FY 2016 Enacted includes $290 million in Section 113 Administrative Provision funding in the following amounts: $176.8 

million in Taxpayer Services, $4.9 million in Enforcement, and $108.2 million in Operations Support.

Department of the Treasury - Budget in Brief 61
Summary

The Internal Revenue Service (IRS) collects 

the revenue to fund the government and 

administer the nation’s tax laws. 

In fiscal year (FY) 2015, the IRS processed 

over 244 million tax returns and other forms, 

and collected $3.3 trillion in taxes (gross tax 

receipts before tax refunds of $403 billion), 

equating to 93 percent of total federal 

government receipts. The IRS is focusing on a 

series of improvements to the tax 

administration system: a more integrated and 

secure delivery of taxpayer services, a 

movement to administer taxes through more 

efficient customer-focused channels, a more 

streamlined compliance program that identifies 

issues sooner and resolves them more 

efficiently, and a stronger set of foundational 

capabilities to support those efforts. 

The IRS is committed to making the tax law 

easier to access and understand through 

taxpayer service and enforcement programs 

that protect the flow of revenue to the 

government; to improving voluntary 

compliance in order to reduce the tax gap (the 

difference between taxes owed and taxes paid 

on time); and to pursuing those who evade or 

misrepresent their tax responsibility. 

While the IRS continues to respond to new 

requirements and rapid changes, many of its

innovative and far-reaching programs risk 

delay or cancellation without adequate 

funding. Over the last several years, the IRS 

has experienced significant budget reductions 

that are creating serious obstacles to its ability 

to fulfill its mission. Fortunately, the IRS has 

been able to execute successful filing seasons 

despite these cuts, but this success is often at 

the expense of other important but less visible 

activities including service to taxpayers and 

enforcement activities. These reductions put 

voluntary compliance, the foundation of our 

tax system, at risk. 

Total resources requested to support IRS 

activities for FY 2017 are $13,244,992,000. 

This includes $12,280,095,000 from direct 

appropriations, of which $514,748,000 is 

provided via a program integrity cap 

adjustment intended to improve the integrity of 

the tax system, and includes a $5,000,000 

transfer to the Alcohol and Tobacco Tax and 

Trade Bureau (TTB) for high return on 

investment enforcement activities. Resources 

also include an estimated $140,686,000 from 

reimbursable programs, an estimated 

$44,937,000 from offsetting collections, an 

estimated $399,730,000 from user fees, and an 

estimated $384,544,000 from prior year 

unobligated balances. The direct 

appropriations before the cap adjustment

represent an increase of $530,347,000 from the 

FY 2016 Enacted level of $11,235,000,000. 

The total Budget request including the 

program integrity cap adjustment is 

$12,280,095 and 84,803 full time equivalents 

(FTEs). 

The IRS Strategic Plan guides program and 

budget decisions and supports Goal 3 of the 

Department of the Treasury FY 2014 to 2017 

Strategic Plan to “Fairly and effectively 

reform and modernize federal financial 

management, accounting, and tax systems.” 

IRS senior leaders recognize the need to focus 

its investment process on elements that support 

increased digital service delivery while 

preserving its core mission functions. 

Additionally, IRS recognizes the importance of

improving enforcement processes through 

early issue detection and resolution while 

ensuring minimal taxpayer burden, and

simultaneously maximizing revenue by 

prioritizing the highest value work. The IRS 

has established a new investment process and 

created six strategic themes and one focus area 

to guide its investment strategy and resource 

allocation. These themes align with existing 

Strategic Goals and Objectives and clearly 

Department of the Treasury - Budget in Brief 62
articulate the strategic outcomes which the IRS 

seeks to achieve. 

The FY 2017 Budget request balances IRS 

priorities with resource availability and 

provides funding to support: 

Theme 1: Facilitate voluntary compliance 

by empowering taxpayers with secure 

innovative tools and support – Drives the 

IRS towards better delivery of tax 

administration by developing a more 

taxpayer-centric service and compliance model 

with a variety of self-service options, early 

error detection, and resolution tools that will 

reduce taxpayer burden and facilitate 

voluntary compliance. Investments will also

support the implementation of necessary 

technology enhancements related to legislative 

mandates, including the Affordable Care Act 

(ACA).

Theme 2: Understand non-compliant 

taxpayer behavior and develop approaches 

to deter and change it – Leverages data and 

behavioral analytics to target the most 

effective non-compliance work in collection 

and enforcement while delivering a 

compressed, efficient enforcement cycle with 

early, upfront error detection and resolution. 

These investments will fund the use of 

network analysis to investigate abusive tax 

schemes, the enforcement and deterrence of 

non-compliance abroad through the 

implementation of the Foreign Account Tax 

Compliance Act (FATCA), and appropriate, 

balanced coverage by improving audit and 

collection coverage rates. 

Theme 3: Leverage and collaborate with 

external stakeholders - While the IRS is not 

requesting new investments in this theme, the 

IRS is continuing existing efforts to improve 

partnerships with all its stakeholders. 

Theme 4: Cultivate a well-equipped, 

diverse, skilled workforce – Although no new 

investments are being requested for this theme, 

the IRS will continue to advance it using 

available resources. Deliberate workforce 

planning and knowledge management are 

cornerstones to the IRS’s ability to execute a 

new era of tax administration. Knowledge 

management and a diverse, skilled workforce 

will be achieved through active corporate 

workforce planning that identifies and closes 

skill gaps across the organization. 

Theme 5: Select highest value work using 

data analytics and a robust feedback loop –

The IRS is not requesting new investments for 

this theme. With the next generation of 

analytics, the IRS will continuously improve 

tax administration and the taxpayer experience 

by evaluating the effectiveness of data-driven 

approaches for identifying and resolving 

taxpayer issues accurately and early. This 

theme focuses on harnessing data to inform 

work streams and enhance case selection 

capabilities and also includes an internal and

external feedback loop to avert or address 

compliance issues quickly. 

Theme 6: Drive more agility, efficiency, and 

effectiveness in IRS Operations – Ensures 

compliance with Federal Records Act of 1950 

as amended (44 U.S.C. Chapter 31), which 

requires all systems to implement an electronic 

retention policy and the Managing 

Government Records Directive (M-12-18) 

which instructs agencies to manage electronic 

records more efficiently and effectively. 

Investments in this area enable faster 

responses to customers. Investments include: 

A robust electronic records management 

program, new software for processing

information returns from third parties; 

improvements to the IRS’s revenue financial 

accounting systems; and funds to keep 

Information Technology (IT) infrastructure

current for existing and newly deployed 

systems. 

Department of the Treasury - Budget in Brief 63
These investments will increase organizational 

performance by reducing and eliminating 

manual processes and improving the reliability 

of enterprise infrastructure to support new and 

changing requirements from legislation, 

presidential orders, Government 

Accountability Office (GAO)

recommendations, and demands from 

taxpayers. 

Focus Area: Strengthen Cybersecurity and 

Eliminate Identity Theft – Provides 

investments that combat Stolen Identity

Refund Fraud and includes detection and 

prevention, assistance to victims, and law 

enforcement. In addition, the IRS plans to 

institute multiple layers of electronic security, 

including multi-factor authentication for 

access to taxpayer-facing systems and 

authentication at the time of filing. The IRS 

will enhance the security of its networks via 

the use of a cyber-threat forensics, 

implementation of a comprehensive patch 

management system, and the adoption of 

government-wide information security 

continuous monitoring tools as parts of a 

layered defense. 

IRS FY 2017 Budget Highlights

Internal Revenue Service $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2016 Enacted (before Administrative Provision 113) $2,156,554 27,887 $4,860,000 38,840 $3,638,446 11,752 $290,000 440 $10,945,000 78,919

FY 2016 Administrative Provision 113 $176,822 2,483 $4,936 $108,242 170 $290,000 2,653

Improve Taxpayer Service 176,622 2,483 1,800 178,422 2,483

Cyber Security 95,442 170 95,442 170

Strengthening the Prevention of Identity Theft 200 4,936 11,000 16,136

FY 2016 Enacted $2,333,376 30,370 $4,864,936 38,840 $3,746,688 11,922 $290,000 440 $11,235,000 81,572

Changes to Base:

Maintaining Current Levels (MCLs): $33,446 $75,008 $60,994 $900 $170,348

Pay Annualization 6,440 14,952 5,392 191 26,975

Pay Raise 23,856 55,386 19,975 709 99,926

Non-Pay 3,150 4,670 35,627 43,447

Efficiencies/Savings: ($3,708) (72) - ($58) - ($3,766) (72)

Increase e-File Savings (3,708) (72) - (58) - (3,766) (72)

Subtotal FY 2017 Changes to Base $29,738 (72) $75,008 $60,936 $900 $166,582 (72)

FY 2017 Current Services (Base) $2,363,114 30,298 $4,939,944 38,840 $3,807,624 11,922 $290,900 440 $11,401,582 81,500

Program Increases:

Budget Request Program Increases:

Facilitate Voluntary Compliance by Empowering Taxpayers with Secure Innovative 

Tools and Support

Implement Changes to Deliver Tax Credits and Other Requirements for the 

Affordable Care Act 153,240 153,240

Leverage New Technologies to Advance the IRS Mission 973 52,515 29 53,488 29

Improve Taxpayer Service 33,503 604 14,952 9 48,455 613

Subtotal $33,503 604 $169,165 9 $52,515 29 $255,183 642

Drive More Agility and Efficiency in IRS Operations

Enterprise Electronic Records Management Solution 18,543 46 18,543 46

Subtotal $18,543 46 $18,543 46

Strategic Focus: Strengthen Cybersecurity and Eliminate Identity Theft 

Prevent Identity Theft and Refund Fraud and Reduce Improper Payments 9,701 154 44,975 301 35,363 36 90,039 491

Subtotal $9,701 154 $44,975 301 $35,363 36 $90,039 491

Subtotal FY 2017 Budget Request Program Increases $43,204 758 $44,975 301 $223,071 91 $52,515 29 $363,765 1,179

Total FY 2017 Total Budget Request $2,406,318 31,056 $4,984,919 39,141 $4,030,695 12,013 $343,415 469 $11,765,347 82,679

Cap Adjustment Program Increases:

Facilitate Voluntary Compliance by Empowering Taxpayers with Secure Innovative 

Tools and Support

Enterprise Case Management 7,369 22 598 7,967 22

Subtotal $7,369 22 $598 $7,967 22

Understand Non-Compliant Taxpayer Behavior and Develop Approaches to Deter 

and Change It

Increase Collection Coverage 58,213 678 32,254 21 90,467 699

Increase Audit Coverage 74,161 816 54,274 40 128,435 856

Digitizing Form 990 80 1 2,298 6 2,378 7

FATCA: Implement, Expand Filing Coverage, and Combat Criminal Non-compliance 49,889 203 76,850 70 126,739 273

Pursue Employment Tax and Abusive Tax Schemes 7,210 37 8,576 15,786 37

Increase Investigations of Transnational Organized Crime (TOC) 29,422 130 6,142 35,564 130

Subtotal $218,975 1,865 $180,394 137 $399,369 2,002

Drive More Agility and Efficiency in IRS Operations

Operations and Maintenance for Deployed Business Systems Modernization (BSM) 

Projects 92,174 73 92,174 73

Maintain Integrity of Revenue Financial Systems 10,238 27 10,238 27

Subtotal $102,412 100 $102,412 100

Alcohol and Tobacco Tax and Trade Bureau Transfer:

Transfer to TTB for High-Return on Investment (ROI) Tax Enforcement Activities 5,000 5,000

Subtotal $5,000 $5,000

Subtotal FY 2017 Cap Adjustment Program Increases $231,344 1,887 $283,404 237 $514,748 2,124

Subtotal FY 2017 Total Program Increases Including Cap Adjustment $43,204 758 $276,319 2,188 $506,475 328 $52,515 29 $878,513 3,303

Total FY 2017 Total Budget Request Including Cap Adjustment $2,406,318 31,056 $5,216,263 41,028 $4,314,099 12,250 $343,415 469 $12,280,095 84,803

Taxpayer Services Enforcement Operations Support BSM TOTAL

Department of the Treasury - Budget in Brief 64
IRS Budget Adjustments

FY 2016 Administrative Provision 113 

(Public Law 114-113) 

+$290,000,000 / +2,653 FTE

Section 113 of the Department of the Treasury 

Appropriations Act of 2016 provided 

$290,000,000 to: measurably improve the 

customer service representative level of 

service (LOS) rate (the percentage of callers to 

the IRS who receive service from an assistor 

or automated system), improve the 

identification and prevention of refund fraud 

and identity theft, and enhance cybersecurity 

to safeguard taxpayer data. 

These resources, supplemented with user fees,

will allow the IRS to achieve a 65 percent 

LOS during the filing season and 47 percent 

for FY 2016; this is a substantial improvement 

over FY 2015 levels. These resources will also 

increase staff and support technology 

innovation efforts in relation to cybersecurity; 

and improve methods of detecting and 

preventing identity theft/refund fraud patterns 

and schemes.

Maintaining Current Level (MCLs)

Pay Annualization +$26,975,000 / +0 FTE

Funds are requested for annualization of the 

January 2016 pay-raise.

Pay-Raise +$99,926,000 / +0 FTE

Funds are requested for the proposed January 

2017 pay raise.

Non-Pay +$43,447,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Efficiency Savings

-$3,766,000 / -72 FTE

These e-file savings are a result of reduced 

paper returns. The IRS projects 1,026,100 

fewer returns filed on paper in FY 2017

(525,100 individual and 501,000 business

returns).

 

FY 2017 Budget Request Program Increases by Theme and Investment

Investments

(dollars in thousands)

$000 FTE $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2017 Budget Request Program Increase $255,183 642 $18,543 46 $90,039 491 $363,765 1,179

Implement Changes for the ACA 153,240 153,240

Improve Taxpayer Service 48,455 613 48,455 613

Leverage New Tech to Adv the IRS Mission 53,488 29 53,488 29

Enterprise eRecords Management 18,543 46 18,543 46

Identity Theft/Refund Fraud 90,039 491 90,039 491

Cap Adjustment $7,967 22 $399,369 2,002 $102,412 100 $5,000 $514,748 2,124

Enterprise Case Management (PMO) 7,967 22 7,967 22

Increase Collection Coverage 90,467 699 90,467 699

Increase Audit Coverage 128,435 856 128,435 856

Digitizing Form 990 2,378 7 2,378 7

FATCA 126,739 273 126,739 273

Emplymt Tax & Abusive Schemes 15,786 37 15,786 37

Transnat'l Organized Crime (TOC) 35,564 130 35,564 130

O & M for Deployed BSM Projects 92,174 73 92,174 73

Maintain Integrity of Rev Fin Sys 10,238 27 10,238 27

Transfer to TTB 5,000 5,000

FY 2017 Budget Request Program Increase 

including Cap $263,150 664 $399,369 2,002 $120,955 146 $90,039 491 $5,000 $878,513 3,303

The table reflects four of our seven strategic themes or focus areas that were the primary emphasis of our FY 2017 request. The remaining themes (Leverage and collaborate with External stakeholders; Cultivate a well-equipped, 

diverse, skilled and flexible workforce; and Select highest value work using data analytics and robust feedback loop) are also key to advancing our strategic vision, but were not the subject of specific investments in the FY 2017 

Theme 1 Theme 2 Theme 6 Focus Area TTB 

Transfer to TTB High-Return 

on Investment (ROI) Tax 

Enforcement Activities Total

Facilitate Voluntary 

Compliance by Empowering 

Taxpayers with Secure 

Innovative Tools and Support

Understand Non-Compliant 

Taxpayer Behavior and 

Develop Approaches to Deter 

and Change It

Drive More Agility, 

Efficiency, and 

Effectiveness in IRS 

Operations

Strengthen Cybersecurity and 

Eliminate Identity Theft 

Department of the Treasury - Budget in Brief 65
Program Increases

FY 2017 Budget Request 

+$363,765,000 / +1,179 FTE

Implement Changes to Deliver Tax Credits 

and Other Requirements for the Affordable 

Care Act (ACA) +$153,240,000 / +0 FTE

This investment will support established ACA 

systems capabilities by validating tax credits 

claimed on individual tax returns; assessing 

and collecting penalties, taxes, and fees; 

providing federal tax information to non-IRS 

entities in the insurance marketplaces; and 

reconciling reported income, tax credits, and 

individual shared responsibility payments with 

information returns. While the Department of 

Health and Human Services is responsible for 

health care policy and insurance provisions in 

the legislation, the IRS administers more than 

45 specific tax provisions and numerous crossagency sections related to tax administration. 

This funding will also improve technology 

infrastructure and applications support and 

provide necessary, major modifications to 

existing IRS tax administration systems.

This investment supports the Implement 

Legislative Mandates component of Theme 1, 

Facilitate voluntary compliance by 

empowering taxpayers with secure innovative 

tools and support. 

Leverage New Technologies to Advance the 

IRS Mission +$53,488,000 / +29 FTE 

This investment supports voluntary 

compliance through technology projects that 

will enable better tax administration and 

simple, consistent taxpayer interactions 

through the following three investments: Event 

Driven Architecture (EDA), which reduces 

return processing time; Enterprise Case 

Management (ECM), which consolidates and 

improves multiple case management systems; 

and a Business Systems Modernization (BSM) 

expansion to improve core IRS systems and 

develop systems needed to support the IRS’s 

taxpayer service programs by migrating 

services from expensive, traditional channels 

to the internet through the development of 

additional web applications. 

This investment will support the Development 

of Innovative Technology and Tools 

component of Theme 1, Facilitate voluntary 

compliance by empowering taxpayers with 

secure innovative tools and support. 

Improve Taxpayer Service 

$48,455,000 / +613 FTE 

• This investment, along with an estimated 

$100 million provided from user fees, will 

allow the IRS to increase full year LOS in 

FY 2017 to 70 percent, up from 47 percent 

in FY 2016, and handle additional 

workload from the expansion of 

enforcement programs. Taxpayers’

expectations are evolving as they continue 

to shift to completing more day-to-day 

tasks and responsibilities online. The IRS 

will invest in delivering high quality and 

timely service to reduce taxpayer burden 

and effectively facilitate voluntary 

compliance. The IRS will also: Invest $5.1 

million and 9 FTE for online accounts to 

modernize and improve self-service 

options for individual taxpayers, and 

ultimately business and international 

taxpayers, by creating an integrated and 

easy-to-use source for timely, accurate, 

and consolidated tax filing and tax account 

information. It will provide the ability to 

correct returns online, which will reduce 

the time and money spent on processing 

amended returns. 

• Invest $1.9 million and 14 FTE to support 

both IRS’s Taxpayer Service and 

Enforcement programs by handling the 

downstream impact in the Taxpayer 

Advocate Service (TAS) from increased 

collection and audit coverage. The 

additional TAS specialists will ensure the 

IRS does not create unnecessary burdens 

Department of the Treasury - Budget in Brief 66
or compromise taxpayers’ rights. This 

investment will support the Facilitate 

Voluntary Compliance through Taxpayer 

Service component of Theme 1, Facilitate 

voluntary compliance by empowering 

taxpayers with secure innovative tools and 

support. 

Enterprise Electronic Records Management 

Solution +$18,543,000 / +46 FTE 

This investment will allow the IRS to manage 

official records more effectively by 

implementing new systems to maintain unified 

records of IRS policy, program, and project 

development and to create a unified, 

searchable archive of IRS e-mails to avoid 

redundant archiving. 

This investment will support the Implement 

New Capabilities and Systems component of 

Theme 6, Drive more agility, efficiency, and 

effectiveness in IRS operations. 

Prevent Identity Theft and Refund Fraud and 

Reduce Improper Payments 

+$90,039,000 / +491 FTE 

This investment will support a variety of 

capabilities and activities that address 

cybercrime, identity theft, and refund fraud. 

The IRS’s investments to combat stolen 

identity refund fraud include detection and 

prevention, assistance to victims, and law 

enforcement. The IRS will protect taxpayer 

data, successfully combat cyber threats, and 

support taxpayer, partner, and IRS business 

needs using innovative, secure technology. 

This investment supports the Address the 

Increased Workload Associated with Identity 

Theft, Refund Fraud, and Improper Payments, 

and Strengthen Technology to Improve the 

Prevention of Refund Fraud and Improper 

Payments components of the IRS’s Focus 

Area.

FY 2017 Budget Request Cap Adjustment 

Program Increases 

+$514,748,000 / +2,124 FTE

Enterprise Case Management 

+$7,967,000 / +22 FTE 

This investment will fund the ECM Project 

Management Office (PMO) to integrate ECM 

implementation throughout the agency and 

ensure alignment with goals and business 

plans. The PMO will manage collaboration 

and alignment with all aspects of case 

management. 

This investment will support the Facilitate 

Voluntary Compliance through Taxpayer 

Service component of Theme 1, Facilitate 

voluntary compliance by empowering 

taxpayers with secure innovative tools and 

support. 

Increase Collection Coverage 

+$90,467,000 / +699 FTE 

This investment provides nearly 400 additional 

field collection staff to handle more than 

30,000 additional collection cases. Resources 

will support more than 350 additional 

Automated Collection System (ACS) staff to 

address an additional 302,000 ACS cases, and 

expand several Compliance Services 

Collection Operations (CSCO) programs that 

address non-filing and underpayment of taxes 

in the notice process by more than 

320,000 notice dispositions.

This investment will also increase collection 

coverage through the Withholding Compliance

(WHC) program by bringing taxpayers who 

have serious under-withholding problems into 

compliance with tax withholding 

requirements. This program will provide a 

single-entry system to populate multiple 

databases, generate WHC correspondence 

letters, and increase efficiency of WHC 

employees and the accuracy of the data. 

Department of the Treasury - Budget in Brief 67
This investment supports the Strengthen Core 

Enforcement Programs and Develop 

Innovative Technology components of 

Theme 2, Understand non-compliant taxpayer 

behavior and develop approaches to deter and 

change it. 

Increase Audit Coverage 

+$128,435,000 / +856 FTE 

This investment will improve the audit 

coverage rate and close over 32,000 additional 

individual examination cases. Resources will 

also expand the Automated Underreporter 

(AUR) program to process more than 

400,000 additional cases. The IRS will 

implement a quality review program for 

penalty and interest computations.

Audit Coverage investments will provide 

resources for the following projects: 

• Correspondence Imaging for Compliance - 

creates a central repository for imaged 

correspondence and allows IRS employees 

to collaborate and resolve compliance 

cases more efficiently.

• QuickBooks accounting software - 

provides license for QuickBooks software 

to all revenue agents enabling them to 

accept electronic accounting records and 

reducing taxpayer burden. 

• Innocent Spouse Application (ISA) in 

Accounts Management System - enhances

letter generation, post-case closing 

transactions, assigns inventory, and create 

reports that can be queried. 

• Corporate Data Initiative (CDI) - 

establishes an enterprise service model for 

developing, operating, and maintaining 

small corporate databases and spreadsheets 

originally developed in Microsoft Access 

or Excel.

• 2D Barcoding for Paper Forms 1040, 

1040X - allows paper returns using 2D 

barcodes to be processed electronically. 

This investment will support the Strengthen 

Core Enforcement Programs and Develop 

Innovative Technology components of 

Theme 2, Understand non-compliant taxpayer 

behavior and develop approaches to deter and 

change it. 

Digitizing Form 990 +$2,378,000 / +7 FTE 

This investment will electronically capture 

data from paper-filed Form 990, Return of 

Organization Exempt from Income Tax, and 

implement 2D barcodes on these returns. This 

will increase audit effectiveness and return 

processing speed, reduce transcription errors, 

and reduce the incidence of inadvertent 

disclosure of information resulting from 

manual redaction errors when posting Forms 

990 to public sources. 

This investment will support the Develop 

Innovative Technology components of 

Theme 2, Understand non-compliant taxpayer 

behavior and develop approaches to deter and 

change it. 

FATCA: Implement, Expand Filing 

Coverage, and Combat Criminal 

Non-compliance +$126,739,000 / +273 FTE 

This investment will provide staff to identify 

and address high priority international issues

that will ensure that financial institutions and 

other entities comply with FATCA 

requirements. Resources will support the 

build-out of FATCA systems requirements. It 

will fund updates to the legacy electronic 

filing system to modify and process FATCA 

forms, add additional capabilities in the webbased registration system, and enhance 

functionality in the systems that facilitate the 

exchange and processing of FATCA data to 

and from withholding agents, Foreign 

Financial Institutions (FFIs) and Host Country 

Tax Authorities and the United States. 

Department of the Treasury - Budget in Brief 68
This investment will support the Strengthen 

Core Enforcement Programs and Develop 

Innovative Technology components of 

Theme 2, Understand non-compliant taxpayer 

behavior and develop approaches to deter and 

change it. 

Pursue Employment Tax and Abusive Tax 

Schemes +$15,786,000 / +37 FTE

This investment will fund a network analysis 

tool that will enable the IRS to link multiple 

potentially abusive returns or information 

items, facilitating identification of any central 

figure behind a scheme. 

This investment will support the Strengthen 

Core Enforcement Programs and Develop 

Innovative Technology components of 

Theme 2, Understand non-compliant taxpayer 

behavior and develop approaches to deter and 

change it. 

Increase Investigations of Transnational 

Organized Crime (TOC) 

+$35,564,000 / +130 FTE 

This investment will allow IRS employees to 

work with the Office of National Drug Control 

Policy (ONDCP) as well as several 

multiple-agency task forces to support 

investigations of illegal drug trafficking and 

money laundering perpetrated by organizations 

involved in TOC. This investment will allow 

the IRS to complete an additional 

360 investigations annually once new hires 

reach full potential in FY 2019. 

This investment will support the Strengthen 

Core Enforcement Programs component of 

Theme 2, Understand non-compliant taxpayer 

behavior and develop approaches to deter and 

change it. 

Operations and Maintenance for Deployed 

Business Systems Modernization (BSM)

+$92,174,000 / +73 FTE

This investment increases IRS IT operations 

funding for BSM projects. Once systems 

which are developed and modernized using 

funds from the BSM appropriation are 

deployed into regular operation, they must be 

operated and maintained using funds from the 

Operations Support appropriation. This 

investment partially restores the operations 

support base (FTE, hardware, software, and 

contractual services). 

This investment will support the Implement 

New Capabilities and Systems component of 

Theme 6, Drive more agility, efficiency, and 

effectiveness in IRS Operations. 

Maintain Integrity of Revenue Financial 

Systems +$10,238,000 / +27 FTE 

This investment will support and improve the 

IRS’s revenue financial accounting systems to 

ensure timely and accurate reporting of tax 

data. 

This investment will support the Provide 

Support for Existing Systems component of 

Theme 6, Drive more agility, efficiency, and 

effectiveness in IRS Operations. 

 

Transfer to TTB for High-Return on 

Investment (ROI) Tax Enforcement Activities 

+$5,000,000 

The IRS will transfer $5 million to the Alcohol 

and Tobacco Tax and Trade Bureau (TTB) for 

high-ROI tax enforcement activities. More 

detailed information can be found in the TTB 

chapter of this volume. 

Department of the Treasury - Budget in Brief 69
Explanation of Budget Activities

Taxpayer Services

The FY 2017 President’s Budget request is 

$2,406,318,000 in direct appropriations, an 

estimated $36,465,000 from reimbursable 

programs, an estimated $116,841,000 from 

user fees, and an estimated $12,000,000 from 

unobligated balances from prior years for a 

total operating level of $2,571,624,000. This 

appropriation funds the following budget 

activities.

Pre-filing Taxpayer Assistance & Education 

($643,197,000 from direct appropriations, an 

estimated +$83,000 from reimbursable 

resources, and an estimated $3,386,000 from 

user fees) 

This budget activity funds services to assist 

taxpayers with understanding and meeting 

their tax obligations, including tax law 

interpretation, publication, production, and 

advocate services. 

Filing & Account Services ($1,763,121,000 

from direct appropriations, an estimated 

$36,382,000 from reimbursable resources, 

and an estimated $113,455,000 from user 

fees) 

This budget activity funds programs that 

provide filing and account services to 

taxpayers, process paper and electronically 

submitted tax returns, issue refunds, and 

maintain taxpayer accounts. The IRS 

continues to make progress in decreasing 

paper returns and increasing the use of 

electronic filing and payment methods.

Enforcement

The FY 2017 President’s Budget request is 

$4,984,919,000 in direct appropriations, an 

estimated $47,222,000 from reimbursable 

programs, an estimated $44,937,000 from 

non-reimbursable offsetting collections, an 

estimated $14,594,000 from user fees, an 

estimated $30,147,000 from unobligated 

balances from prior years, $231,344,000 as 

part of a program integrity cap adjustment, and 

Return on Investment (ROI) for IRS FY 2017 Enforcement Initiatives 

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI

FY 2017 Revenue Producing Enforcement Initiatives $388.1 $397.5 1.0 $475.1 $2,643.1 5.6

Cap Adjustment Enforcement Initiatives $388.1 $397.5 1.0 $475.1 $2,643.1 5.6

Immediate and Directly Measurable Revenue-Producing Initiatives $207.6 $397.5 1.9 $282.6 $2,643.1 9.4

Increase Collection Coverage 90.5 160.5 1.8 127.3 1,216.4 9.6

Increase Audit Coverage 117.1 237.0 2.0 155.3 1,426.7 9.2

Strategic Revenue-Producing Initiatives (which do not have immediately measurable ROI, 

but clear long-term revenue effects) $180.5 $0.0 0.0 $192.5 $0.0 0.0

Digitizing Form 990 2.4 0.0 0.0 3.1 0.0 0.0

FATCA: Implement, Expand Filing Coverage, and Combat Criminal Non-compliance 126.7 0.0 0.0 141.6 0.0 0.0

Pursue Employment Tax and Abusive Tax Schemes 15.8 0.0 0.0 10.1 0.0 0.0

Increase Investigations of Transnational Organized Crime (TOC) 35.6 0.0 0.0 37.7 0.0 0.0

First Year (FY 2017) Full Performance (FY 2019)

FY 2017 Revenue-Protecting Enforcement Initiatives

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI

Revenue Protecting Initiatives (which protect taxpayer information, prevents identity theft, 

and results in long-term revenue protection) $101.3 $676.0 6.7 $124.3 $1,526.0 12.3

Before Cap Adjustment Revenue Protecting Initiative $90.0 $612.0 6.8 $107.6 $1,146.0 10.7

Prevent Identity Theft and Refund Fraud and Reduce Improper Payments 90.0 612.0 6.8 107.6 1,146.0 10.7

Cap Adjustment Revenue Protecting Initiative $11.3 $64.0 5.7 $16.7 $380.0 22.8

Increase Audit Coverage (revenue-protecting portion) 11.3 64.0 5.7 16.7 380.0 22.8

First Year (FY 2017) Full Performance (FY 2019)

Department of the Treasury - Budget in Brief 70
a negative $5,000,000 transfer from the cap 

adjustment request to the TTB. The total FY 

2017 operating level is $5,348,163,000. 

In conjunction with specified funds provided 

in the IRS Operations Support account, the 

program integrity cap adjustment of 

$514,748,000 will support tax compliance 

investments expected to generate high returns 

on investment in the form of increased tax 

revenues. This appropriation funds the 

following budget activities.

Investigations ($714,208,000 from direct 

appropriations, and an estimated 

$45,789 from reimbursable resources) 

This budget activity funds the Criminal 

Investigation (CI) programs that explore 

potential criminal and civil violations of tax 

laws, enforce criminal statutes relating to 

violations of tax laws and other financial 

crimes, and recommend prosecution as 

warranted. These programs identify and 

document the movement of legal and illegal 

sources of income and instances of suspected

intent to defraud. This budget activity also 

provides resources for international 

investigations involving U.S. citizens residing 

abroad, non-resident aliens, and expatriates, 

and includes investigation and prosecution of 

tax and money laundering violations 

associated with narcotics organizations. 

Exam & Collections ($4,347,684,000 from

direct appropriations, an estimated 

$606,000 from reimbursable resources, and 

an estimated $574,000 from user fees) 

This budget activity funds programs that 

enforce the tax laws and increase compliance 

through examination and collection and ensure 

proper payment and tax reporting. It also 

includes campus support of the Questionable 

Refund program and appeals and litigation 

activities associated with exam and collection. 

Regulatory ($154,371,000 from direct 

appropriations, an estimated $827,000 from 

reimbursable resources, and an estimated 

$14,020,000 from user fees) 

This budget activity funds the development 

and printing of published IRS guidance 

materials; interpretation of tax laws; internal 

advice to the IRS on general non-tax legal 

issues such as procurement, personnel, and 

labor relations; enforcement of regulatory 

rules, laws, and approved business practices; 

and support of taxpayers in the areas of 

pre-filing agreements, determination letters, 

and advance pricing agreements. The Return 

Preparer Program is funded within this activity 

as well as the Office of Professional 

Responsibility, which identifies, 

communicates, and enforces Treasury Circular 

230 standards of competence, integrity, and 

conduct of professionals representing 

taxpayers before the IRS. 

Operations Support

The FY 2017 President’s Budget request is 

$4,030,695,000 in direct appropriations, an 

estimated $56,999,000 from reimbursable 

programs, an estimated $268,295,000 from 

user fees, an estimated $66,200,000 from 

unobligated balances from prior years, and 

$283,404,000 as part of a program integrity 

cap adjustment, for a total operating level of 

$4,705,593,000. 

In conjunction with specified funds provided 

to the IRS Enforcement account, the program 

integrity cap adjustment of $514,748,000 will 

support new tax compliance investments that 

are expected to generate high returns on 

investment in the form of increased tax 

revenues. This appropriation funds the 

following budget activities. 

Infrastructure ($895,094,000 from direct 

appropriations, and an estimated 

$772,000 from reimbursable resources) 

This budget activity funds administrative 

services related to space and housing, rent and 

Department of the Treasury - Budget in Brief 71
space alterations, building services, 

maintenance, guard services, and non-IT 

equipment. 

Shared Services & Support ($1,197,954,000 

from direct appropriations, an estimated 

$23,152,000 from reimbursable resources, 

and an estimated $19,574,000 from user fees) 

This budget activity funds policy management, 

IRS-wide support for research, strategic 

planning, communications and liaison, 

protection of sensitive information and the 

privacy of taxpayers and employees, finance, 

human resources, and equity, diversity, and 

inclusion programs. It also funds printing and 

postage, business systems planning, physical 

security, corporate training, legal services, 

procurement, and employee benefits programs. 

Information Services ($2,221,051,000 from 

direct appropriations, an estimated 

$33,075,000 from reimbursable resources, 

and an estimated $248,721,000 from user 

fees) 

This budget activity funds staffing, equipment, 

and related costs to manage, maintain, and 

operate the information systems critical to the 

support of tax administration programs. This 

includes the design and operation of security 

controls and disaster recovery planning. This 

budget activity funds the development and 

maintenance of the millions of lines of 

programming code that support all aspects and 

phases of tax processing and the operation and 

administration of the mainframes, servers, 

personal computers, networks, and a variety of 

management information systems. 

Business Systems Modernization

The FY 2017 President’s Budget request is 

$343,415,000 in direct appropriations, and an 

estimate of $276,197,000 from unobligated 

balances from prior years for a total operating 

level of $619,612,000. This appropriation 

funds the following budget activity. 

Business Systems Modernization 

This budget activity funds the planning and 

capital asset acquisition of IT to modernize 

IRS business systems, including labor and 

related contractual costs. It funds investments 

in systems which enhance the IRS’s capability 

to detect, resolve, and prevent tax 

noncompliance, simplify the taxpayer’s online 

experience, provide secure digital 

communications, and add more interactive 

capabilities to existing web self-service 

products. 

Legislative Proposals

The FY 2017 President’s Budget request 

includes a number of legislative proposals 

intended to reduce the tax gap and improve tax 

compliance with minimal taxpayer burden. 

The Treasury Office of Tax Analysis (OTA) 

estimates these new tax gap proposals will 

increase revenue by $82.2 billion over the next 

ten years, which includes $63.6 billion 

generated by program integrity cap 

adjustments. The IRS estimates the 

implementation costs for the FY 2017 

President’s Budget tax gap proposals to be 

$57.2 million (excluding the program integrity 

cap adjustments ten-year cost) over three 

years, including the initial startup, processing, 

and compliance operational costs. Note that in 

a few cases estimates are not yet available. 

The Administration proposes to expand 

information reporting and sharing, improve 

compliance by businesses, and strengthen tax 

administration. The Budget also proposes to 

amend the Balanced Budget and Emergency 

Deficit Control Act of 1985 (BBEDCA), as 

amended, to provide 10-years (FYs 2017-

2026) of discretionary caps to permit program 

integrity cap adjustments, which cost about 

$18 billion while generating approximately 

$64 billion, for a net savings of $46 billion

over the 10-year budget window. 

The IRS requests Streamlined Critical Pay 

(SCP) authority through September 30, 2020. 

Department of the Treasury - Budget in Brief 72
This authority expired September 30, 2013. 

Currently there are 14 senior employees under 

SCP appointments, down from a peak of 30. 

If the SCP is not renewed, the IRS will face 

challenges recruiting and retaining top-level 

talent through FY 2017 as the remaining SCP 

term appointments expire, especially IT 

professionals who can help protect taxpayer 

data from cyber-attacks and who are working 

to modernize the IRS's IT infrastructure. 

According to Treasury Inspector General for 

Tax Administration report 2015-IE-R001, The 

Internal Revenue Service’s Use of Its 

Streamlined Critical Pay Authority, “Private 

sector expertise had been crucial to 

introducing new leadership to supplement 

in-house expertise, and the IRS had taken 

advantage of the private sector expertise by 

retaining the critical pay appointees whenever 

feasible.” 

The IRS requests that the Commissioner 

position be permanently added to 31 U.S.C § 

1344(b)(6) as one of the government officials 

authorized home-to-work transportation. The 

IRS Criminal Investigations unit completed an 

extensive assessment of the Commissioner’s 

threat environment and has classified the threat 

as high. The Treasury Inspector General for 

Tax Administration (TIGTA) has also 

recommended that precautions continue to be 

taken regarding the Commissioner’s safety due 

to the elevated threat environment.

IRS Performance by Program

Key: DISC – Discontinued 

Description of Performance

In FY 2015, the IRS continued to provide 

quality service to taxpayers and enforce the 

laws with integrity and fairness, but was 

unable to maintain some of its performance 

levels due to resource constraints. 

Nevertheless, the IRS continued to deliver in 

key areas, including international, tax exempt, 

and refund fraud, including identity theft. 

Taxpayer Service Customer Contacts Resolved Per 

Staff Year (E) 20,767 21,018 26,245 21,000 28,000 25,700 

Taxpayer Service Customer Service Representative 

(CSR) Level of Service (%) (Oe) 60.5 64.4 38.1 38.0 47.0 70.0

Taxpayer Service Percent of Individual Returns 

Processed Electronically (%) (Oe) 82.5 84.1 85.3 84.6 86.0 86.0

Enforcement Automated Collection System

(ACS) Accuracy (%) (Oe) 94.4 95.2 95.3 94.0 95.0 95.0

Enforcement Automated Underreporter (AUR)

Coverage (%) (E) 2.8 2.6 2.3 2.6 2.2 2.3

Enforcement Examination Efficiency - Individual 

(Form 1040) (E) 142 138 148 135 122 122 

 

FY 2017

Target

FY 2016

Target Programs Performance Measure FY 2013

 Actual

FY 2015

Actual

FY 2014

Actual

FY 2015

Target

Department of the Treasury - Budget in Brief 73
Taxpayer Services 

Providing taxpayers top-quality service and 

helping them understand and meet their tax 

obligations remain top priorities for the IRS. 

The IRS strives to deliver high quality and 

timely service to taxpayers and stakeholders. 

Although the IRS had significant 

accomplishments serving taxpayers in 

FY 2015, budget constraints forced the IRS to 

focus on its top priorities and reduce funding 

in many areas. The IRS achieved the 

following results through September 2015: 

• Published more than 90 percent of the 

700 revised or newly created individual 

and business tax products prior to the start 

of the filing season; 

• Received more than 139 million individual 

returns, of which 87 percent were filed 

electronically

• Provided a 38.1 percent LOS; 

• Answered more than 9.7 million assistor 

calls; and

• Achieved accuracy rates of 95.0 percent 

for tax law questions and 95.5 percent of 

account questions received via the 

telephone. 

In FY 2015, the IRS provided valuable 

services to millions of taxpayers while making 

it easier for them to participate in the tax 

system. The IRS:

• Assisted over 217,000 customers with 

return preparation at VITA sites through 

Facilitated Self-Assistance (FSA) and 

30,000 using Virtual VITA; 

• Launched the Free File campaign at the 

beginning of the 2015 filing season and 

received more than 650,0000 visits to the 

Free File website in the first week;

• Completed evaluations and onsite visits for 

several countries that have signed or 

agreed-in-substance intergovernmental 

agreements (IGAs) to determine a 

country’s ability to safeguard taxpayer 

information, in accordance with FATCA 

guidelines; 

• Produced 117 Tax Tips (110 with Spanish 

translations) reaching more than 

632,000 e-mail subscribers; and 

• Issued 102.6 million refunds to individuals 

totaling $276.9 billion. 

The IRS is building an environment of 

multiple digital service options. In FY 2015, 

the IRS launched or enhanced an array of 

services: 

• IRS2Go Mobile, Version 5. IRS2Go 

Mobile enables taxpayers to make 

electronic payments, find the nearest 

location offering free volunteer tax help, 

and uses responsive design to update the 

app for screen sizes of multiple devices. In 

FY 2015, IRS2Go was downloaded more 

than 2.3 million times and had over 3.8 

million active users 

• Third Party Data Services Pilot. Enables 

the IRS to share refund status data with 

third parties (tax preparation firms, tax 

preparation software, and state and federal 

agencies) that require individual taxpayer 

information. 

• Online Payment Agreement (OPA). New 

updates improved the user experience for a 

number of functions including log-in and 

authentication, setting up direct debit, and 

providing better access for business users. 

Since its launch, more than 200,000 OPA 

agreements were completed representing 

more than $650 million in revenue from 

web transactions.

• IRS Direct Pay, Release 3. Adds 

responsive design and enhancements; 

email confirmations of payments, 

cancellations, or reversals, and a Spanish 

language version. Since the November 

2013 launch, the IRS has collected 

$17 billion through this application, of 

which $14.9 billion was collected in 

FY 2015. 

• Directory of Federal Preparers with 

Credentials and Select Qualifications. 

Provides a lookup tool to find return 

Department of the Treasury - Budget in Brief 74
preparers by location. Since its launch in 

January 2015, customers performed more 

than 200,000 searches.

• Payment Mix Comparison Tool. Enables 

preparers, on behalf of the business 

taxpayer community, to compare the 

portion of gross receipts from credit card 

receipts to the business plans of similar 

businesses from prior years. This tool is 

intended to encourage accurate reporting 

by payment recipients and help close the 

tax gap.

• Optimized Virtual Service Technology 

Delivery (VSD). Allows taxpayers to have 

face-to-face interactions with an IRS 

assistor who is working in a remote 

location by using video monitors stationed 

at non-IRS owned taxpayer support sites. 

So far, IRS has deployed this technology at 

five sites. 

These new services improved existing 

in-person assistance and phone service to help 

the IRS collect $3.3 trillion in revenue for 

FY 2015 and process 244 million tax returns 

and other forms. 

The IRS continues to improve and expand its 

outreach and educational services through 

partnerships with state taxing authorities, 

volunteer groups, and other organizations. 

Volunteer Income Tax Assistance (VITA) and 

Tax Counseling for the Elderly (TCE) sites 

provided free tax assistance for the elderly, 

disabled, and limited English proficient 

individuals and families. More than 

3.6 million tax returns were filed at Volunteer 

Income Tax Assistance/Tax Counseling for the 

Elderly volunteer sites.

Enforcement

In FY 2015, the IRS collected more than 

$54.2 billion, a 9 percent decrease from 

FY 2014. This is the sixth consecutive year 

the IRS exceeded $50 billion in enforcement 

revenue for a total IRS-wide ROI of $5.0 to 

$1. It is important to note, however, that a 

variety of factors beyond the IRS’s control 

impact enforcement revenue collections, 

including changes in tax policy and the health 

of the macroeconomy. Thus, the relatively 

stable revenues should not be interpreted to 

suggest that budget cuts have not reduced 

IRS’s enforcement capabilities. In fact, the 

individual examination coverage rate has 

steadily declined from 1.1 percent in FY 2010 

to 0.8 percent in FY 2015. If IRS enforcement 

funding had remained at FY 2010 levels, 

FY 2015 collections would have been higher. 

Figure 1: IRS Enforcement Revenue

The ROI estimate does not include the revenue 

effect of the indirect deterrence value of these 

investments and other IRS enforcement 

programs, which is conservatively estimated to 

be at least three times the direct revenue 

impact.

The IRS CI program investigates potential 

criminal violations of the Internal Revenue 

Code and related financial crimes such as 

money laundering, currency violations, 

tax-related identity theft fraud, and terrorist 

financing that adversely affect tax 

administration. Highlights of IRS CI’s 

Enforcement performance through FY 2015 

include: 

• Completed 4,486 criminal investigations 

and obtained 2,879 convictions; 

• Identified 1,281 questionable refund 

schemes reflecting $1.2 billion in 

potentially fraudulent refunds claims and 

also imposed limits on the number of 

refunds that can be deposited in a single 

bank account. As a result, 205,019 refunds 

totaling $863 million were converted to 

paper. 

48.9 57.6 55.2 50.2 53.3 57.1 54.2

0

10

20

30

40

50

60

FY

2009

FY

2010

FY

2011

FY

2012

FY

2013

FY

2014

FY

2015

In Billions

 

Department of the Treasury - Budget in Brief 75
• Received 28,635 taxpayer applications 

from the Offshore Voluntary Compliance 

Disclosure Program, which permits 

taxpayers to voluntarily disclose that they 

failed to report income in offshore bank 

accounts.

Congress passed FATCA in 2010 to improve 

tax compliance for foreign accounts and 

cross-border transactions. FATCA aims to 

ensure that offshore investment activities are 

properly captured for tax administration 

purposes by instituting reporting requirements 

for foreign financial institutions. In FY 2015, 

the IRS: 

• Added additional capabilities to the 

FATCA registration website and released 

second-generation software for FATCA 

registration. 

• Released the International Data Exchange 

Service – which consists of testing with 

foreign partners to enable them to conduct 

FATCA reporting; and 

• Initiated and deployed the International 

Compliance Management Model (ICMM), 

a new system that receives processes, 

manages, and stores FATCA data and 

modernizes communications with foreign 

governments that have Intergovernmental 

Agreements (IGAs) and Competent 

Authority Arrangements (CAAs). ICMM 

processes FATCA reports filed 

electronically or on paper. 

The IRS also implemented an initiative to 

improve the Fraud Referral Program and 

examinations of 501(c) tax exempt entities

allowing the IRS to identify 19 entities 

involved in illicit terrorist financing schemes.

During FY 2015, the IRS continued its 

implementation of the ACA and outreach 

activities to ensure that taxpayers were aware 

of the new tax provisions under the ACA. The 

IRS successfully implemented two major 

provisions: the Refundable Premium Tax 

Credit; and individual shared responsibility for 

both individual taxpayer returns and 

information returns from employers and 

insurers. 

During the 2015 filing season, new technology 

allowed taxpayers to report health insurance 

coverage, claim health coverage exemptions, 

report a shared responsibility payment, and 

claim the Premium Tax Credit. 

The IRS also built the ACA Verification 

Service (AVS), to enable at-filing checks of 

tax returns for reporting the Premium Tax 

Credit, leveraging third-party data from the 

Insurance Marketplaces and validating ACArelated tax forms. This system, which 

processed millions of tax returns, helped 

identify fraudulent and erroneous returns at the 

initial processing stage, thereby reducing the 

number of erroneous refunds. 

Business Systems Modernization

IRS modernization efforts continued in 

FY 2015: 

• Return Review Program (RRP) Initiated 

the RRP pilot project, which successfully 

loaded and scored over 98 million 

electronic refund returns. Of those returns, 

nearly 800,000 were identified as potential 

ID theft fraud, representing potentially 

more than $4.7 billion in government 

revenues protected. By identifying 

suspicious cases earlier in the process, 

RRP was able to reduce the amount of 

manual analysis work by 20 percent. In its 

inaugural filing season, RRP operated 

without interruption.

• CADE 2 Received Executive Steering 

Committee approval of the Customer 

Account Data Engine (CADE) 2 Transition 

State 2 (TS2) five-year release plan. In 

addition to continued support of the IRS’s 

current tax processing needs, the plan 

includes expansion of CADE 2 

capabilities. The TS2 five-year release 

plan will address the Unpaid Assessment 

Financial Material Weakness, leverage the 

Department of the Treasury - Budget in Brief 76
CADE 2 database as the Authoritative 

Source for Financial Statement Audit and 

Reporting, and begin the migration of core 

Individual Master File (IMF) functions 

from Assembly Language Code (ALC) to a 

modern computer language. Notably, an 

update in FY 2015 prevented issuance of 

erroneous notices for limited Failure to Pay 

Penalties and another enabled capturing 

historic financial data expected to be useful 

in audit processes.

Summary of IRS FY 2017 ACA Budget Request

Affordable Care Act (ACA) $000 FTE $000 FTE $000 FTE $000 FTE

FY 2016 Enacted $71,793 935 $19,984 185 $112,840 724 $204,617 1,844

Changes to Base:

Maintaining Current Levels (MCLs): $1,108 $310 $1,719 $3,137

Pay Annualization 233 66 344 643

Pay Raise 865 243 1,273 2,381

Non-Pay 10 2 102 114

Subtotal FY 2017 Changes to Base $1,108 $310 $1,719 $3,137

FY 2017 Current Services (Base) $72,901 935 $20,294 185 $114,559 724 $207,754 1,844

Program Increases:

Budget Request Program Increases:

Implement Changes to Deliver Tax Credits 

and Other Requirements for the ACA 153,240 153,240

Improve Taxpayer Service 32,021 590 9,399 41,420 590

Subtotal FY 2017 Budget Request Program Increa $32,021 590 $162,639 $194,660 590

Total FY 2017 Total Budget Request $104,922 1,525 $20,294 185 $277,198 724 $402,414 2,434

TAXPAYER SERVICES ENFORCEMENT OPERATIONS SUPPORT TOTAL

Department of the Treasury - Budget in Brief 77
Department of the Treasury - Budget in Brief 78
Office of Financial Stability

Program Summary

Dollars in Billions

Cumulative 

Obligated

Cumulative 

Disbursed

Cumulative 

Outstanding

Total 

Cumulative 

Income

Total 

Cash 

Back

Total 

Estimated 

Lifetime 

Costs (as of 

11/30/15)

 

Bank Support Programs 250 245 1 36 275 -24

19 19 0 5 24 -3

AIG Investment Program (AIG) 68 68 0 1 55 15 *

Automotive Industry Financing 

Program 80 80 0 7 71 12

Treasury Housing Programs 38 19 0 35

Total** $455 $430 $1 $49 $425 $35 

Additional AIG Common Shares 

Held by Treasury 0 0 0 18 18 -18 *

Total for Programs and Shares** $455 $430 $1 $66 $442 $17 

* If all Treasury AIG Investments are combined, it results in a net gain of nearly $2.4 billion on those shares.

**Totals may not foot due to rounding.

Summary and Explanation of Programs

The Emergency Economic Stabilization Act 

(ESSA) was enacted in October 2008 in 

response to one of the worst financial crises in 

United States history. To address the crisis, 

EESA established the Office of Financial 

Stability (OFS) within the Treasury 

Department to implement the Troubled Asset 

Relief Program (TARP). EESA vested 

authority in the Secretary of the Treasury to 

“purchase, and to make and fund commitments 

to purchase, troubled assets from any financial 

institution, on such terms and conditions as are 

determined by the Secretary.” 

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act) 

enacted on July 21, 2010, reduced the TARP 

authority to purchase troubled assets to $475 

billion from an original $700 billion. 

As a result of careful stewardship of the 

program and improved financial conditions, 

the ultimate cost to the taxpayers of TARP 

investments has dropped from the FY 2009 

estimate of $341.0 billion to $34.5 billion as of 

November 30, 2015 ($17.0 billion when

Treasury’s additional AIG receipts are 

included). 

In FY 2017, OFS plans to obligate $127 

million and use 64 FTEs, a decrease of more 

than $20 million and 8 FTEs from the updated 

FY 2016 estimates, to fund the management of 

the TARP housing programs and the 

continuing disposition of OFS’s remaining 

investments. The decrease in FTEs and 

outside contracts reflects the continued winddown of TARP. 

Legislative Proposals

OFS has no legislative proposals for FY 2017. 

Description of Performance

Bank Support Programs 

Capital Purchase Program (CPP) 

The CPP - OFS’s largest program - was 

launched to stabilize and build confidence in 

the financial system by bolstering the capital 

position of viable institutions. OFS ultimately 

provided a total of $204.9 billion in capital to 

Department of the Treasury - Budget in Brief 79
707 institutions in 48 states, including more 

than 450 small and community banks and 22 

Community Development Financial 

Institutions (CDFIs). 

As of November 30, 2015, the CPP has 

generated $226.6 billion, $21.7 billion in 

excess of disbursements, in proceeds for 

taxpayers with 18 institutions remaining in the 

program for a total of $263 million in 

investments outstanding. 

Targeted Investment Program (TIP)

OFS completed the wind-down of the $40.0 

billion TIP in December 2009 and received net 

proceeds of $4.4 billion in excess of 

disbursements. For additional information on 

TIP, please reference previous budget 

submissions. 

Asset Guarantee Program (AGP) 

OFS completed the wind-down of the $5 

billion AGP in February 2013, and received 

more than $4.1 billion in proceeds from the 

AGP without disbursing any claim payments. 

For additional information on AGP, please 

reference previous budget submissions. 

Community Development Capital Initiative 

(CDCI)

To help mitigate the adverse impact that the 

financial crisis had on communities 

underserved by traditional banks, OFS

launched CDCI to provide capital to banks, 

thrifts, and credit unions that qualified as 

Community Development Financial 

Institutions (CDFIs) in February 2010. Under 

this program, CDFI banks and thrifts received 

investments of capital with an initial dividend 

or interest rate of two percent, compared to the 

five percent rate offered under the CPP. 

OFS invested a total of $570 million in 84 

CDFIs. As of November 30, 2015, 23 

institutions have fully repaid their investment, 

5 institutions have partially repaid their 

investment, and one has been taken into 

receivership, and the program has 

approximately $445 million in investments

outstanding.

Credit Market Programs 

Public-Private Investment Program (PPIP)

On March 23, 2009, OFS launched the Legacy 

Securities Public-Private Investment Program 

(PPIP) to help restart the market for nonagency residential mortgage-backed securities 

(RMBS) and commercial mortgage-backed 

securities (CMBS). The purpose of PPIP was 

to draw new private capital into the market for 

legacy RMBS and CMBS by providing 

financing on attractive terms as well as a 

matching equity investment from OFS. 

Treasury invested a total of $18.6 billion in the 

program. All of the PPIFs have been 

effectively wound down and OFS has 

recovered all of its debt and equity 

investments plus an additional $3.9 billion in 

revenue.

Term Asset-Backed Securities Loan Facility 

(TALF)

OFS completed the wind-down of TALF in 

February 2013 when OFS’s $100 million 

disbursed investment was fully repaid. OFS

received net proceeds of $685 million in 

excess of disbursements. For additional 

information on TALF, please reference 

previous budget submissions. 

Small Business Administration (SBA) 7(a) 

Securities Purchase Program 

OFS sold all its SBA 7(a) securities in the 

portfolio by FY 2012, marking the successful 

wind-down of the $368 million program. OFS

received net proceeds of $9 million in excess 

of disbursements. For additional information 

on SBA, please reference previous budget 

submissions. 

Department of the Treasury - Budget in Brief 80
American International Group, Inc. (AIG) 

Investment Program

The Federal Reserve, and later OFS, after 

EESA became law, provided assistance to AIG 

totaling approximately $182 billion, which 

included $70 billion from OFS and $112 

billion committed by the FRBNY. In FY

2013, OFS and the FRBNY completed the 

recovery of their investments in AIG. OFS 

and FRBNY have recovered that entire amount 

and an additional $22.7 billion and Treasury 

fully exited its investment in AIG in FY 2013.

For additional information on AIG, please 

reference previous budget submissions. 

Automotive Industry Financing Program 

(AIFP)

Under AIFP, OFS invested a total of $79.7 

billion in GM, Ally Financial (Ally), and 

Chrysler. 

OFS made loans totaling $50.2 billion 

(including funds for warranty suppliers) to 

GM. Some of those loans were subsequently 

converted to common stock in GM. Through 

share repurchases by the company, as well as 

sales of shares to investors, OFS completed its 

disposition of GM in December 2013, with 

proceeds of $10.5 billion less than invested. 

OFS committed a total of $12.4 billion to 

Chrysler under TARP. In July 2011, OFS

fully exited its investment in Chrysler, six 

years ahead of schedule. Of the $12.4 billion 

disbursed to Chrysler under TARP, OFS

recovered more than $11.2 billion for 

taxpayers through principal repayments, 

interest, and cancelled commitments. OFS is 

unlikely to fully recover the difference of $1.2

billion owed by Old Chrysler. 

OFS invested $17.2 billion in Ally under 

TARP (including $884 million invested 

through GM). OFS has fully liquidated its 

investment in Ally Financial through 

repurchases, private placements, an initial 

public offering (IPO), and underwritten 

common stock sales and has realized 

cumulative receipts of $19.6 billion, $2.4 

billion more than invested. 

Treasury Housing Programs Under TARP 

OFS established several programs under 

TARP to address the historic housing crisis 

and help struggling homeowners avoid

foreclosure wherever possible. These 

programs have helped millions of homeowners 

avoid foreclosure and introduced important 

new reforms for the mortgage servicing 

industry to help make mortgage modifications 

become more sustainable and affordable.

Making Home Affordable Program (MHA) 

In early 2009, OFS launched the Making 

Home Affordable® Program (MHA) to help 

struggling homeowners avoid foreclosure and 

stabilize the housing market. The cornerstone 

of MHA is the Home Affordable Modification 

Program (HAMP), which provides eligible 

homeowners the opportunity to reduce their 

monthly mortgage payments to more 

affordable levels. OFS also introduced 

additional programs under MHA to help 

homeowners who are unemployed, 

“underwater” on their loan (those who owe 

more on their home than it is currently worth), 

or are struggling with a second lien. It also 

includes options for homeowners who would 

like to transition to a more affordable living 

situation through a short sale or deed-in-lieu of 

foreclosure. On June 26, 2014, the 

Administration extended the application 

deadline for MHA programs to at least 

December 31, 2016. In addition, OFS has

recently made changes to MHA programs to 

better assist homeowners avoid foreclosure 

and create a safety net for borrowers facing

rate step-ups in a HAMP modification which 

include increasing borrower incentives, 

lowering interest rates, and providing payment 

relief on HAMP modifications. In July 2015, 

OFS announced a streamlined modification 

Department of the Treasury - Budget in Brief 81
process under HAMP to assist homeowners 

who are seriously delinquent and have not 

completed a HAMP application.

In addition to HAMP, MHA includes 

additional programs to help homeowners with 

specific types of mortgages, in conjunction 

with the Federal Housing Administration 

(FHA) and the United States Department of 

Agriculture (USDA). As of November 30, 

2015, OFS had disbursed $12.9 billion out of a 

possible $29.8 billion under MHA.

Housing Finance Agency (HFA) Hardest-Hit 

Fund

The Administration established the Hardest 

Hit Fund (HHF) in February 2010 to provide 

targeted aid to homeowners in states hit 

hardest by the economic and housing market 

downturn. As part of the Administration’s 

overall strategy for restoring stability to

housing markets, HHF provides funding for 

state Housing Finance Agencies (HFAs) to 

develop locally-tailored foreclosure prevention 

solutions in areas that have been hardest hit by 

home price declines and high unemployment. 

From its initial announcement, this program 

evolved from a $1.5 billion initiative focused 

on HFAs in the five states with the steepest 

home price declines and the vast majority of 

underwater homeowners to a broader-based 

$7.6 billion initiative encompassing 18 states 

and the District of Columbia (DC). In 

December 2015, the Consolidated 

Appropriations Act, 2016 (P.L. 114-113) 

granted Treasury authority to make an 

additional $2.0 billion in commitments 

through the HHF. 

HHF programs vary state to state, but may 

include such programs as mortgage payment 

assistance for unemployed or underemployed 

homeowners, principal reduction to help 

homeowners get into more affordable 

mortgages, funding to eliminate homeowners’ 

second lien loans, help for homeowners who 

are transitioning out of their homes and into 

more affordable living situations, blight 

elimination in an effort to stabilize 

neighborhoods and prevent foreclosures, and 

down payment assistance to moderate-income 

qualified homebuyers in distressed markets. 

As of November 30, 2015, OFS had disbursed 

$5.8 billion under the HFA Hardest-Hit Fund. 

Federal Housing Administration (FHA)-

Refinance Program 

OFS also continues to support the Federal 

Housing Administration Short Refinance 

Program. Under this program, eligible 

borrowers who are current on their mortgage 

or complete a trial payment plan but owe more 

than their home is worth, can refinance into an 

FHA-insured loan if the lender writes off at 

least 10 percent of the existing loan. 

Utilization of the program has been limited 

with OFS providing coverage for only 

approximately 4,200 loans refinanced as of 

September 30, 2015. As such, OFS has 

reduced the letter of credit (LOC) facility 

supporting this program from $8.1 billion to 

$100 million. As of September 30, 2015, the 

revised lifetime cost estimate for the program 

is $29 million for outstanding refinanced 

loans. 

Department of the Treasury - Budget in Brief 82
Office of Financial Research

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Actual Estimated Estimated $ Change % Change

Data Center $17,240 $24,933 $26,039 $1,106 4.44%

Technology Center $30,970 $28,964 $35,391 $6,427 22.19%

Research and Analysis Center $10,396 $15,446 $17,156 $1,710 11.07%

Operations and Support Services $26,110 $29,962 $26,184 ($3,778) -12.61%

Total Cost of Operations $84,716 $99,305 $104,770 $5,465 5.50%

FTE 194 230 255 25 10.87%

Summary

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 (the DoddFrank Act) established the Office of Financial 

Research (OFR or Office) within the 

Department of the Treasury (Treasury) to 

serve the Financial Stability Oversight Council

(Council), its member agencies, and the public

by improving the quality, transparency, and 

accessibility of financial data and information; 

conducting and sponsoring research related to 

financial stability; and promoting best 

practices in risk management. 

The OFR, as an office within the Treasury 

Department, is aligned with Treasury Strategic 

Goal 1: Promote domestic economic growth 

and stability while continuing reforms of the 

financial system, and Objective 1.3: Complete 

implementation of financial regulatory reform 

initiatives, continue monitoring capital

markets, and address threats to stability. The 

OFR also is aligned with Treasury Strategic 

Goal 5: Create a 21st

-century approach to 

government by improving efficiency, 

effectiveness, and customer interaction, and 

Objective 5.2: Support effective, data-driven 

decision-making and encourage transparency 

through intelligent gathering, analysis, sharing, 

use and dissemination of information. 

Aligning to these Treasury goals and 

objectives, and consistent with the Dodd-Frank 

Act, the OFR has established three strategic 

goals to help achieve its mission, as described 

below.1 

The OFR is an essential source of data and 

analysis for monitoring threats to financial 

stability.

Key objectives of this goal include: 

• The OFR’s monitoring tools and analysis 

are widely used and critical to assessing 

financial stability; 

• Data used to monitor financial stability are 

comprehensive, reliable, and accessible to 

policy makers and the public through the 

OFR; and 

• Data providers and the public trust that 

OFR data are protected and secure.

Standards that improve the quality and 

usefulness of financial data are identified 

and adopted.

Key objectives underlying this goal include: 

• Recognition of the need for standards by 

policy makers and industry; 

1 See the OFR’s Strategic Plan for FY 2015-2019 at 

http://financialresearch.gov/strategy-budget/files/Office-of-FinancialResearch-Strategic-Plan-2015-2019.pdf and Treasury’s FY 2014-2017 

Strategic Plan at http://www.treasury.gov/about/budgetperformance/strategic-plan/Documents/2014-

2017_US_TreasuryStrategicPlan.pdf.

Department of the Treasury - Budget in Brief 83
• The OFR is the source of expert 

knowledge needed to develop and 

implement types and formats of data 

reported and collected; and

• Financial data standards that create 

efficiencies and facilitate analysis are 

widely used. 

Leading edge research improves financial 

stability monitoring and the scope and quality 

of financial data, and informs policy and risk 

management.

Key objectives underlying this goal include: 

• The OFR is the recognized center for 

objective, innovative research on financial 

stability and

• OFR research is widely cited and used in 

policy making, risk management, and data 

management.

OFR FY 2017 Budget Highlights

Dollars in Thousands

Office of Financial Research FTE Amount

FY 2016 Estimated 230 $99,305 

Changes to Base:

Program Changes 

Program Increases 25 $5,465 

Personnel Steady State 25 $3,523 

Non-Personnel Steady State $1,942 

FY 2017 Base 255 $104,770 

FY 2017 Estimated 255 $104,770 

Explanation of Budget Activities

Data Center ($26,039,000 from Assessments) 

The Dodd-Frank Act requires the Data Center, 

on behalf of the Council, to collect, validate, 

and maintain all data necessary to carry out the 

duties of the Office. Under this mandate, the 

Data Center provides data services to federal 

financial regulators to increase efficiency in 

data acquisition and management, reduce 

redundant reporting requirements across the 

regulatory system (including through more 

effective data sharing arrangements), and 

secure sensitive data. The promotion of 

standards for financial data is expected to 

provide benefits to regulators and financial 

market participants by making data 

aggregation easier, improving analysis, and 

reducing costs associated with data collection. 

To support transparency in its operations and 

better public understanding of risks to financial 

stability, the Data Center also publishes data 

and data-related information, as well as 

information on its activities.

Technology Center ($35,391,000 from 

Assessments) 

The Technology Center provides missioncritical analytic services to support the OFR’s 

work with complex, sensitive financial data 

and the Office’s expanding research and 

analysis activity. In addition, the Technology 

Center is responsible for safeguarding data and 

systems, and managing all information 

technology capabilities within the OFR. These 

responsibilities include computing and analytic 

platforms, software, telecommunications, 

client applications, and office automation 

solutions. 

Research and Analysis ($17,156,000 from 

Assessments) 

The Dodd-Frank Act provided that the 

Research and Analysis Center, on behalf of the 

Council, develop and maintain independent 

analytical capabilities and computing 

resources: 

• To develop and maintain metrics and 

reporting systems for risks to the financial 

stability of the United States;

• To monitor, investigate, and report on 

changes in system-wide risk levels and 

patterns to the Council and to Congress; 

• To conduct, coordinate, and sponsor 

research to support and improve regulation 

of financial entities and markets;

Department of the Treasury - Budget in Brief 84
• To evaluate and report on stress tests or 

other stability-related evaluations of 

financial entities overseen by Council 

member agencies;

• To maintain the expertise necessary to 

support specific requests for advice and 

assistance from financial regulators;

• To investigate disruptions and failures in 

the financial markets, report findings, and 

make recommendations to the Council 

based on those findings; 

• To conduct studies and provide advice on 

the impact of policies related to systemic 

risk; and 

• To promote best practices for financial risk 

management.

To support effective achievement of these 

objectives, the OFR is also establishing forums 

and networks to bring together experts from 

within and outside the regulatory system. In 

addition, the OFR is publishing key results of 

its analyses to support transparency in its 

operations and promote public understanding 

of threats to financial stability.

Operations and Support Services

($26,184,000 from Assessments) 

These activities cover all operational, legal, 

and administrative functions that support the 

effective, transparent, and well-monitored 

delivery of the OFR’s core outputs related to 

data, research, and analysis. This includes 

support provided through reimbursable 

arrangements with other activities in 

Treasury’s Departmental Offices, as well as 

other service providers. 

OFR Performance by Budget Activity

Description of Performance

The OFR is continuing to review its

performance measures in FY 2016 and may 

revise them based the ability to obtain 

additional data. The OFR will continue to 

review all measures as the organization 

matures, and revise them as necessary.

OFR Performance by Budget Activity

Budget 

Activity

Performance Measure 

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2014

Actual 

FY 2015 

Actual

FY 2016 

Target

FY 2017 

Target

Data 

Center

Number of LEIs assigned cumulatively to 

date in the United States and internationally

N/A N/A N/A N/A 395,861 I I 

Data 

Center

Number of times that financial data 

standards are incorporated in rules and 

regulations

N/A N/A N/A N/A 2 I I 

Research 

and 

Analysis 

Number of research and analysis

publications made public year-to-date

N/A 10 15 11 34 25 35

Research 

and 

Analysis 

Number of monitor editions, policy analyses, 

and dashboards produced for monitoring 

threats to financial stability 

N/A N/A N/A N/A 21 12 15

Key: DISC – Discontinued

Department of the Treasury - Budget in Brief 85
Department of the Treasury - Budget in Brief 86
Financial Stability Oversight Council

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Actual Estimated Estimated $ Change % Change

Financial Stability Oversight Council $6,236 $8,133 $8,519 $386 4.75%

Federal Deposit Insurance Corporation 

Payments $7,628 $6,570 $9,500 $2,930 4.46%

Total Cost of Operations $13,864 $14,703 $18,019 $3,316 22.55%

FTE 22 34 36 2 5.88%

Summary

Prior to the 2008 financial crisis, the existing 

financial regulatory framework focused 

narrowly on individual institutions and 

markets, which allowed supervisory gaps to 

grow and regulatory inconsistencies to emerge 

– in turn, allowing arbitrage and weakened 

standards. The Dodd-Frank Wall Street 

Reform and Consumer Protection Act (the 

Dodd-Frank Act) established the Financial 

Stability Oversight Council (Council) with a 

clear statutory mandate that created for the 

first time collective accountability for 

identifying and responding to emerging threats 

to financial stability. The Council is chaired 

by the Secretary of the Treasury and consists 

of 10 voting members and five nonvoting 

members. 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 primary purposes under 

the Act 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 U.S. government will shield them from 

losses in the event of failure. 

3. To respond to emerging threats to the 

stability of the U.S. financial system.

Over the last year, the Council has continued 

to evaluate whether to designate certain 

nonbank financial companies for Federal 

Reserve supervision and enhanced prudential 

standards, and conducted annual reviews for 

each of the three companies designated in

2013. The Council continued to monitor the 

eight financial market utilities (FMUs) that 

were designated as systemically important by 

the Council in 2012. The Council also 

continued to identify and monitor potential 

risks to U.S. financial stability; fulfilled 

explicit statutory requirements, including the 

completion of its fifth annual report to 

Congress; and served as a forum for discussion 

and coordination among the member agencies 

implementing the Dodd-Frank Act.

Over the next year, the Council will continue 

to evaluate nonbank financial companies for 

potential designation for Federal Reserve 

supervision and enhanced prudential 

standards; consider whether to designate 

additional FMUs as systemically important; 

monitor the financial system for emerging

risks; and facilitate interagency cooperation to 

identify and analyze potential emerging 

threats. The Council will also continue to 

facilitate interagency coordination and 

Department of the Treasury - Budget in Brief 87
information sharing with respect to various 

regulatory initiatives.

The Council is required by the Dodd-Frank 

Act 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 2015, the Council convened nine 

times. The Council will continue to remain 

focused on both 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 to the public about 

Council activities and decisions. 

FSOC FY 2017 Budget Highlights

Dollars in Thousands

Financial Stability Oversight Council FTE Amount

FY 2016 Estimated 34 $14,703 

Changes to Base:

Program Changes 

Program Increases 2 $3,346 

Personnel Steady State 2 $416 

Non-Personnel Steady State ($30) 

FDIC Payment Adjustment $2,930 

FY 2016 Base 36 $18,019 

FY 2017 Estimated 36 $18,019 

Explanation of Budget Activities

Financial Stability Oversight Council

($8,519,000 from Assessments) 

The Council has a clear statutory mandate to 

facilitate coordination among financial 

regulators and identify risks and respond to 

emerging threats to U.S. financial stability. 

The Council is not a bureau or office of the 

Department of the Treasury. However, under 

the Dodd-Frank Act, the Council’s expenses 

are considered expenses of the Office of 

Financial Research, an office within the 

Department of the Treasury.

Federal Deposit Insurance Corporation 

(FDIC) Payments ($9,500,000 from 

Assessments) 

Section 210(n)(10) of the Dodd-Frank Act

provides that certain reasonable 

implementation expenses of the FDIC incurred 

after the enactment of the Dodd-Frank Act 

shall be treated as expenses of the Council. 

The FDIC must periodically submit 

requests for reimbursement for implementation 

expenses to the Chairperson of the Council, 

who shall arrange for prompt reimbursement 

to the FDIC of reasonable implementation 

expenses. The expenses estimated are for rule 

writing and resolution planning consistent with 

the FDIC’s implementation of its 

responsibilities under Title II of the DoddFrank Act.

Description of Performance

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. 

Department of the Treasury - Budget in Brief 88
Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $636,489 $863,940 $846,335 ($17,605) -2.04%

Total Cost of Operations $636,489 $863,940 $846,335 ($17,605) -2.04%

FTE 1,800 1,924 1,924 0 0.00%

Summary

In support of Treasury’s strategic goal of 

“Enhance U.S. Competitiveness and Promote 

International Financial Stability and Balanced 

Global Growth”, the mission of the Bureau of 

Engraving and Printing (BEP) is to develop 

and produce United States currency notes, 

trusted worldwide. 

FY 2017 Priorities

Produce and deliver U.S. currency notes 

ordered by the Federal Reserve Board that 

consistently meet the customer’s high quality 

standards. Create innovative currency designs 

to provide effective counterfeit deterrence and 

meaningful access to currency note usage for 

all; achieve organizational excellence and 

customer satisfaction through balance 

investment in people, processes, facilities, and 

technology. 

Banknote Design and Development – There 

are two main components of currency 

redesign: Technical and Aesthetic. The 

primary technical goals in the redesign of U.S. 

currency are to: Ensure that U.S. currency 

employs unique and technologically advanced 

features to deter counterfeiting; facilitate the 

public’s use and authentication; provide 

accessibility and usability and maintain public 

confidence. The aesthetic goals in the 

redesign of U.S. currency are to 

institutionalize our American history by 

depicting people, monuments, symbols, and 

concepts that reflect the past and reinforce a 

theme for that particular era of currency 

design. 

Meaningful Access – Assist users of U.S. 

currency, including the blind and visually 

impaired, with a means to denominate 

currency. BEP is following two project paths 

to provide meaningful access, a Currency 

Reader (an electronic assistive device that can 

identify a note’s value and communicate it to 

the user) as well as a Raised Tactile Feature 

(RTF) that will be on future notes. 

The Bureau of Engraving and Printing 

operates on the basis of authority conferred 

upon the Secretary of the Treasury by 31 

U.S.C. 321(a) (4) to engrave and print 

currency and other security documents. 

Operations are financed through a revolving 

fund established in 1950 in accordance with 

Public Law 81-656. The fund is reimbursed 

for direct and indirect costs of operations, 

including administrative expenses, through 

product sales. In 1977, Public Law 95-81 

authorized the Bureau to include an amount 

sufficient to fund capital investment and to 

meet working capital requirements in the 

prices charged for products, eliminating the 

need for appropriations from Congress. 

The Bureau produces the paper currency notes 

ordered by the Federal Reserve Board (FRB). 

During FY 2017, BEP expects to produce and 

deliver 8.0 billion notes to the FRB to meet 

currency demand. The FY 2017 order 

represents a slight decrease in the number of 

Department of the Treasury - Budget in Brief 89
notes expected to be delivered in the FY 2016 

program. 

Research and development of new 

technologies for use in currency note 

production is a priority at the Bureau as more 

sophisticated counterfeit deterrent features are 

needed to protect future generations of 

currency notes. In 2017, BEP will continue its 

efforts to research and develop security 

features working with the National Research 

Labs to expand our outreach to identify new 

technologies that may be used. In addition, via 

its website, www.bep.gov, BEP seeks 

information on technologies that would 

enhance the longevity and durability of 

currency notes in circulation and new 

technologies or materials that could be 

developed for future use in counterfeit 

deterrence. 

BEP supports a comprehensive anticounterfeiting program built around effective 

note design, public education, and aggressive 

law enforcement. The Bureau will continue its 

work in 2017 with the Advanced Counterfeit 

Deterrent (ACD) Steering Committee to 

research and develop future currency designs 

that will enhance and protect U.S. currency 

notes. The ACD Committee includes 

representatives from BEP, the Department of 

the Treasury, the U.S. Secret Service, and the 

FRB. It was with guidance from the ACD

Committee, that the $10 note was selected as 

the first denomination for redesign. While 

many factors are taken into consideration, the 

primary reason for redesigning currency is to 

address current and potential counterfeiting 

threats.

Work will continue in FY 2017 on the goal of 

enabling the Nation’s currency to better serve 

domestic and international users, including the 

blind and visually impaired. BEP will 

continue its efforts to research, develop, and 

test tactile features that will enhance future 

note designs. Testing and refinement of 

features will continue to determine which 

processes and features work best at the 

production volumes needed for U.S. currency. 

The FY 2017 Budget requests funding to 

continue the BEP Currency Reader 

distribution program in coordination with the 

Library of Congress’ National Library Service. 

Under this program, United States citizens and 

legal residents who are blind or visually 

impaired are provided a currency reader to aid 

in the denomination of US currency. 

In addition, funding is requested to continue 

the Currency Quality Assurance (CQA) 

Program. The Bureau, in collaboration with its 

stakeholders, developed a robust CQA 

Program that began in 2014 and will continue 

to mature in 2017. Every BEP work activity 

was aligned and will be resourced to support 

this integrated, collaborative, and rigorous 

quality assurance program that focuses on 

every step of the supply chain from raw 

material, through the manufacturing process 

steps to final packaging and delivery. CQA 

reaches into nearly every “corner” of the BEP 

organization and its effectiveness depends on a 

strong cadre of process and production 

engineers, quality assurance specialists and 

other specialists in related science and 

engineering disciplines. 

In 2017, the Bureau will continue to 

implement BEP Human Capital Plan 

initiatives; efforts will continue to fill gaps in 

needed STEM skill sets to support our CQA 

efforts in addition to adding resources in 

technology development and feature testing 

areas. 

2017 funding is requested to support BEP’s 

Phase II of a retooling equipment project 

which includes an equipment replacement 

plan, tactile feature testing equipment, labor 

Department of the Treasury - Budget in Brief 90
relations/staffing strategy and alternatives for 

material handling.

BEP’s current Washington, DC facility has an 

aging and outdated infrastructure which drives 

up costs and adversely impacts quality. Work 

on a replacement production facility is going 

forward; in May 2015 a site selection 

evaluation contract was awarded. In 2016 

BEP will award a construction management 

administrative support contract and facility 

design programming contract. Efforts are also 

underway in 2016 to narrow down the possible 

site selections to the top 3 for further 

evaluation. The new production facility is 

projected to be completed in the 2022

timeframe, with the new facility fully 

operational by 2025; however this is subject to 

change as the project evolves. The Federal 

Reserve Board, which would pay for a 

replacement of the Washington, DC facility, 

supports this project. 

BEP FY 2017 Budget Highlights

Dollars in Thousands

Bureau of Engraving and Printing FTE Materials Operating & 

Capital Total

FY 2016 Estimated 1,924 $292,250 $571,690 $863,940

Changes to Base:

Maintaining Current Levels (MCLs): - - $9,395 $9,395

Pay-Raise - - $2,404 $2,404

Pay Annualization - - $799 $799

Non-Pay - - $6,192 $6,192

Efficiency Savings: - - ($2,000) ($2,000)

Reduction in Overtime - - ($2,000) ($2,000)

Subtotal Changes to Base - - $7,395 $7,395

Total FY 2017 Base 1,924 $292,250 $579,085 $871,335

Program Changes:

Program Decreases: - - ($25,000) ($25,000)

Currency Reader - - ($5,000) ($5,000)

DCF Production Facility Replacement - - ($10,000) ($10,000)

Reduction in Retooling - - ($10,000) ($10,000)

Total FY 2017 Estimated 1,924 $292,250 $554,085 $846,335

FY 2017 Budget Adjustments

Adjustment to Estimates

Maintaining Current Level (MCLs)

Pay-Raise +$2,404,000 / +0 FTE 

Funds are required for the proposed January 

2017 pay-raise.

Pay Annualization +$799,000 / +0 FTE 

Funds are required for and the annualization of 

the 2016 pay-raise. 

Non-Pay +$6,192,000 / +0 FTE 

Funds are required for inflation adjustments in 

non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Efficiency Savings 

Reduction in Overtime -$2,000,000 / +0 FTE 

As a result of CQA driven improvements, BEP 

anticipates better production yields which will 

in turn reduce overtime costs. 

Program Decreases 

Currency Reader -$5,000,000 / +0 FTE 

As currency readers are released to the public, 

fewer devices will be needed to fulfill 

customers’ orders. 

DCF Production Facility Replacement 

-$10,000,000 / +0 FTE 

The Project Management contract for BEP’s

new facility investment was funded in

Department of the Treasury - Budget in Brief 91
FY 2016, therefore funding is not needed in 

FY 2017. 

Reduction in Retooling -$10,000,000 / 

+0 FTE 

BEP’s retooling needs for FY 2017 are not as 

large as FY 2016; therefore funding is not 

needed in FY 2017. 

Explanation of Budget Activities

Manufacturing ($846,335,000 from 

revenue/offsetting collections) 

The BEP has one budget activity: 

Manufacturing. This budget activity supports 

all of BEP’s strategic goals.

Legislative Proposals

BEP has no legislative proposals.

BEP Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Manufacturing Best Places to Work in Federal 

Government Ranking

47 51 74 99 99

Manufacturing Lost Time Accident Rate per 100 

Employees

1.63 1.73 1.65 1.8 1.8

Manufacturing Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced)

50.45 44.22 42.35 50.0 50.0

Manufacturing Percent of Currency Notes 

Delivered Returned Due to 

Defects

.466 .00001 .0000003 .0001 .0001

Description of Performance

Manufacturing Costs for Currency (dollar 

cost per 1,000 notes produced) is an 

indicator of manufacturing efficiency and 

effectiveness of program management. The 

measure is based on contracted price factors, 

productivity improvements, as well as the 

mix of denominations ordered. Actual 

performance against standard cost depends 

on BEP’s ability to meet spoilage, 

efficiency, and capacity utilization goals. In 

2015 the cost of manufacturing was lower 

than anticipated; the actual result realized 

was $42.35 per 1,000 notes produced against 

a target of $54.00. BEP target for this 

performance metric in both 2016 and 2017 

is set at $50.00 per 1,000 notes produced. 

Percent of currency notes returned due to 

defects is an indicator of the Bureau’s ability 

to provide a quality product. BEP’s 

FY 2015 target for this performance metric 

was .0001 percent, and the actual result 

realized for this measure was .0000003 

percent. BEP’s target for this performance 

metric will be held constant at .0001 percent 

for both FY 2016 and 2017. 

Department of the Treasury - Budget in Brief 92
BEP’s Best Places to Work in Federal 

Government Ranking is a based on the 

results of the Partnership for Public Service 

data on three questions in the Federal 

Employee Viewpoint Survey. BEP’s 2015 

rank was 74 out of 320. BEP will continue 

to target achievement of an improvement in 

rank. 

Reduction in Regulated Waste (Pounds of 

waste per 1000 notes delivered of regulated 

air emissions, wastewater, and solid waste 

combined) is a quantitative indicator of the 

effectiveness of BEP environmental 

programs, which are assessed through the 

BEP ISO 14001 certified Environmental 

Management System (EMS). BEP’s 

FY 2015 performance of 27.3 pounds of 

regulated waste for this metric was against a 

target of 30 pounds per 1000 notes 

delivered. 

Lost Time Accident Rate per 100 

Employees measures the Bureau’s ability to 

reduce injuries and illnesses in the 

workplace. BEP’s 2015 lost time case rate 

was favorable during the fiscal year at 1.65 

against a target of 1.8 cases per 100 

employees. The Bureau remains committed 

to improving the safety of its employees and 

has undertaken analysis to determine the 

root causes of injury and to identify best 

practices in safety. BEP’s target for this 

performance metric will be held constant at 

1.8 per 100 employees for FY 2016 and 

FY 2017. 

Department of the Treasury - Budget in Brief 93
Department of the Treasury - Budget in Brief 94
United States Mint

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2016 FY 2016 TO FY 2017

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $2,937,553 $2,896,207 $2,956,207 $60,000 2.0%

Total Cost of Operations $2,937,553 $2,896,207 $2,956,207 $60,000 2.0%

FTE 1,651 1,874 1,874 0 0.0%

Summary

The United States Mint (Mint) supports the 

Department of the Treasury’s strategic 

objectives to: facilitate commerce by 

providing trusted and secure U.S. currency, 

products, and services for use by the public 

(1.4); promote efficient use of resources 

through shared services, strategic sourcing, 

streamlined business processes, and 

accountability (5.3); and create a culture of 

service through relentless pursuit of customer 

value (5.4). 

The Mint operates under the United States 

Mint’s Public Enterprise Fund (PEF). As 

authorized by Public Law 104-52 (31 U.S.C. § 

5136), the PEF makes amounts available 

without further appropriation. Proceeds from 

the sales of circulating coins to the Federal 

Reserve Banks and numismatic items to the 

public are the source of funding for operations. 

Both operating expenses and capital 

investments are associated with the production 

of circulating and numismatic coins and coinrelated products. Revenues in excess of 

amounts required by the PEF are transferred to 

the Treasury General Fund. 

The Mint’s key priorities for FY 2017 include:

• Circulating - Efficiently and effectively 

mint and issue approximately 16.9 billion 

circulating coins in FY 2017 to meet the 

needs of commerce.

• Numismatic Program Bullion Products – 

Mint and issue bullion coins to meet 

customer demand efficiently and 

effectively. 

• Other Numismatic Products - Produce and 

distribute numismatic products in 

sufficient quantities, through appropriate 

channels, to make them accessible, 

available, and affordable to people who 

choose to purchase them. Design, strike 

and prepare for presentation Congressional 

Gold Medals. 

FY 2017 United States Mint estimated total 

revenues are $3,443,193,000, total expenses 

are $2,956,207,000, of which $40,500,000 are 

for capital investments, and net results are 

$486,986,000 in earnings. 

Department of the Treasury - Budget in Brief 95
Mint FY 2017 Budget Highlights

Dollars in Thousands

United States Mint FTE Materials Operating & 

Capital Total

FY 2016 Estimated 1,874 $2,460,000 $436,207 $2,896,207

Changes to Base:

Maintaining Current Levels (MCLs): - - $6,791 $6,791

Pay-Raise - - $2,079 $2,079

Pay Annualization $691 $691

Non-Pay - - $4,021 $4,021

Efficiency Savings: - - ($6,791) ($6,791)

Reduction – Absord MCLs - - ($6,791) ($6,791)

Subtotal Changes to Base - - $0 $0

Total FY 2017 Base 1,874 $2,460,000 $436,207 $2,896,207

Program Changes:

Program Increases:

Circulating and Protection Capital Limitation 

Increase - - $10,000 $10,000

Metal due to Forecast Increase in Circulating Coin 

Production - $40,000 - $40,000

Metal Due to Forecast Increase in 

Numismatic/Bullion Production - $10,000 - $10.000

Subtotal FY 2017 Program Changes $50,000 $10,000 $60,000

Total FY 2017 Estimated 1,874 $2,510,000 $446,207 $2,956,207

FY 2017 Budget Adjustments

Adjustments to Estimates

Maintaining Current Level (MCLs)

Pay-Raise +$2,079,000 / +0 FTE

Funds are required for the proposed January 

2017 pay-raise. 

Pay Annualization +$691,000 / +0 FTE

Funds are required for annualization of the 

proposed January 2016 pay-raise.

Non-Pay +$4,021,000 / +0 FTE

Funds are required for inflation adjustments in 

non-labor costs such as travel, contracts, rent, 

supplies, and equipment. 

Efficiency Savings 

Operating Cost Savings -$6,791,000 / 

+0 FTE

The Mint will absorb annual inflationary costs 

within the current operating budget by 

effective cost management across all 

departments within the Mint.

Program Increases

Circulating and Protection Capital 

LimitationIincrease +$10,000,000 / +0 FTE

The bureau has identified an urgent need to 

increase its legislative limit by $10 million. 

This will raise the current limit from $20 

million to $30 million beginning in FY 2017.

The increased capital limit will allow the Mint 

to execute a comprehensive capital strategy 

that focuses on safety, equipment 

replacements, protection, and facility 

improvements. 

 

Metal Due to Forecast Increase in 

Circulating Coin Production +$40,000,000 / 

+0 FTE

The Mint forecasts that demand for circulating 

coins will remain strong in FY 2016 and 2017, 

at 16.3 billion coins and 16.9 billion coins, 

respectively. To meet the growth in demand, a 

$40 million increase for metal purchases is 

required. 

Department of the Treasury - Budget in Brief 96
Metal Due to Forecast Increase in 

Numismatic and Bullion Coin Production 

+$10,000,000 / +0 FTE

The Mint forecasts that the FY 2017 

numismatic coin production cost will 

experience a slight growth of $20 million and 

the FY 2017 bullion coin production cost will 

be $10 million lower than the FY 2016 

projected level. The net effect is $10 million 

increase in required metal purchases. 

Explanation of Budget Activities

Manufacturing ($2,956,207,000 from 

revenue/offsetting collections) 

The Mint has one budget activity: 

manufacturing. This budget activity 

encompasses the bureau’s two major 

programs: circulating coinage and numismatic 

coin products including bullion coins, collector 

coins and national medals. 

Circulating Coinage Program 

Circulating coinage includes the penny, nickel, 

dime, and quarter-dollar coins. 

The United States Mint delivers circulating 

coinage to the Federal Reserve Banks at face 

value for subsequent distribution to the 

commercial banking system as required to 

transact commerce.

The Mint will continue to mint and issue 

quarter-dollar coins honoring America’s 

national parks and other national sites in 

accordance with the America’s Beautiful 

National Parks Quarter Dollar Coin Act of 

2008 (Public Law 110-456). In 2017, the 

Mint will release quarters honoring Effigy 

Mounds National Moument (Iowa), Frederick 

Douglass National Historic Site (District of 

Columbia), Ozark National Scenic Riverways 

(Missouri), Ellis Island National Monument 

(Statue of Liberty) (New Jersey), and George 

Rogers Clark National Historical Park 

(Indiana). 

Numismatic Program

Bullion Coin Program 

The United States Mint produces bullion coins 

under American Eagle, American Buffalo, and 

America the Beautiful Silver Bullion Coin

Programs to fulfill investor demand. Bullion 

coins are largely bought by precious metal 

dealers and sold to consumers who desire 

precious metals as part of an investment 

portfolio. The demand for bullion coins is 

greatly influenced by the performance of other 

investment options, such as equities markets or 

currency markets, and therefore is highly 

unpredictable. The content and purity of the 

precious metal in the bullion coins are backed 

by the United States Government.

Other Numismatic Products 

The United States Mint produces and 

distributes numismatic products, including 

proof and uncirculated versions of coins, 

directly to the public. For some numismatic 

products, authorizing legislation specifies 

program requirements, such as design theme, 

mintage level and duration of product 

availability. Other programs are structured by 

law to grant the Secretary of the Treasury 

discretion in determining product 

specifications. The Numismatic Program 

includes the American Eagle Program, the 

American Buffalo Program, the America the 

Beautiful Quarters Program, the Presidential 

and Native American $1 Coin Programs, 

recurring programs, and commemorative coins 

and medals. 

In FY 2017, the Mint has authorization to mint 

two commemorative coins, the Lions Club 

International Commemorative Coin (Public 

Law 112-181) and the Boys Town Centennial 

Commemorative Coin (Public Law 114-30). 

The Mint will continue to mint and issue 

numismatic versions of $1 coins honoring the 

Nation’s past Presidents in accordance with 

the Presidential $1 Coin Act of 2005 (Public 

Department of the Treasury - Budget in Brief 97
Law 109-145). In 2016, the Mint will release 

Presidential $1 Coins honoring Presidents 

Richard M. Nixon, Gerald R. Ford, and 

Ronald Reagan. 

The Presidential $1 Coin Program ends in 

2016. The Mint will also continue to mint and 

issue $1 coins celebrating the important 

contributions made by Indian tribes and 

individual Native Americans to the 

development and history of the United States 

in accordance with the Native American $1 

Coin Act (Public Law 110-82).

In FY 2017, the Mint’s total estimated 

budgetary requirements for operating, metal 

and capital investments are $2,956 million.

Legislative Proposals

Mint repeats a proposal from the FY 2016 

President’s Budget, to eliminate the 20 percent 

requirement in the Native American $1 Coin 

Act. 

Mint Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Manufacturing Customer Satisfaction Index (%) 92.6 89.8 89.5 90.0 90.0

Manufacturing Numismatic Sales Units (Million Units) 5.51 5.7 5.4 4.6 4.1

Manufacturing Safety Incident Recordable Rate 2.9 3.31 3.42 2.96 2.96

Manufacturing Seigniorage per Dollar Issued ($) .24 .37 .49 .47 .46

Key: DISC - Discontinued

Description of Performance

Customer Satisfaction Index (CSI) 

The Mint conducts a quarterly Customer 

Satisfaction Measure Tracking Survey among 

a random sample of active numismatic 

customers. The survey is intended to capture 

customer satisfaction with the Mint’s service 

and product quality. The CSI is a quantitative 

score of survey results. The Mint’s CSI 

reached 89.5 percent in FY 2015, below the 

target of 90.0 percent. 

Numismatic Sales Units

The numismatic sales units metric measures

the public demand for coin products sold from 

numismatic operations. It quantifies the 

demand for the Nation’s official numismatic 

products. Numismatic sales units totaled 5.4 

million in FY 2015, falling short of the 5.6 

million target. The decrease mainly resulted 

from lower customer demand. 

Safety Incident Recordable Rate 

Safety incident recordable rate is the number 

of injuries and illnesses meeting the 

Occupational Health and Safety 

Administration recording criteria per 100 fulltime workers. The safety incident recordable

rate was 3.42 recordable injuries and illnesses 

per 100 full-time workers in FY 2015, above 

the 2.96 target but below the industry average 

rate of 5.9 for forging and stamping 

manufacturers. 

Seigniorage per Dollar Issued 

Seigniorage is the financial return on 

circulated coinage shipped to the FRB and the 

public. It measures the cost-effectiveness of 

the United States’ circulating coinage. 

Seigniorage per dollar issued was $0.49 in 

FY 2015, above the performance target of 

$0.24. Results exceeded the target mainly due 

to a 57 percent increase in FRB orders for 

circulating quarter-dollar coins above forecast

along with lower metals costs and reduced 

general and administrative costs. 

Department of the Treasury - Budget in Brief 98
Office of the Comptroller of the Currency

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Actual Estimated Estimated $ Change % Change

Supervise $873,414 $993,905 $1,013,782 $19,878 2.00%

Regulate $103,574 $117,863 $120,221 $2,357 2.00%

Charter $18,992 $21,532 $21,963 $431 2.00%

Total Cost of Operations $995,910 $1,133,300 $1,155,966 $22,666 2.00%

FTE 3,805 3,955 3,955 0 0.00%

 

Summary

The Office of the Comptroller of the Currency 

(OCC) was created by Congress to charter 

national banks; oversee a nationwide system of 

banking institutions; and ensure national banks 

are safe and sound, competitive and profitable, 

and capable of serving in the best possible 

manner the banking needs of their customers. 

Effective on July 21, 2011, Title III of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act), 

transferred to the OCC the responsibility for 

the supervision of federal savings associations 

and rulemaking authority for all savings 

associations. 

As of September 30, 2015, the OCC 

supervised 1,010 national bank charters and 49 

federal branches of foreign banks in the United 

States with total assets of approximately $10.4 

trillion, and 416 federal savings associations 

(which include 165 mutual institutions) with

total assets of approximately $688 billion. In 

total, the OCC supervises approximately $11.1

trillion in financial institution assets. The 

average size and complexity of financial 

institutions continue to grow. This creates 

increasing and diverse challenges for the OCC. 

The OCC has established three goals outlined 

in its strategic plan that help support a strong 

economy for the American public: 1) A 

vibrant and diverse system of national banks 

and federal savings associations that supports a 

robust U.S. economy; 2) “One OCC” focused 

on collaboration, innovation, coordination, and 

process efficiency; 3) The OCC is firmly 

positioned to continue to operate 

independently and effectively into the future. 

To achieve its goals and objectives, the OCC 

organizes its activities under three programs: 

1) Supervise, 2) Regulate, and 3) Charter. 

Effective supervision and a comprehensive 

regulatory framework are the key tools that the 

OCC uses to ensure that national banks and 

federal savings associations operate in a safe

and sound manner and that they provide fair 

access to financial services and fair treatment 

of their customers. A robust chartering 

program allows new entrants into the financial 

services sector while ensuring that they have 

the necessary capital, managerial, and risk 

management processes to conduct activities in 

a safe and sound manner. 

The OCC’s priorities focus on strengthening 

the resiliency of the institutions subject to its 

jurisdiction through its supervisory and 

regulatory programs and activities. A stronger 

and more resilient banking system directly 

supports three of the Department of the 

Treasury’s FY 2014-2017 (Treasury) strategic 

goals: 1) Promote domestic economic growth 

and stability while continuing reforms of the 

financial system; 4) Safeguard the financial 

system and use financial measures to counter 

Department of the Treasury - Budget in Brief 99
national security threats; and 5) Create a 21st

-

century approach to government by improving 

efficiency, effectiveness, and customer 

interaction.

In supervising banks, the OCC has the power 

to: 

• Examine banks; 

• Approve or deny applications for new 

charters, branches, capital, or other 

changes in corporate or banking structure;

• Take supervisory and enforcement actions 

against banks that do not comply with laws 

and regulations or that otherwise engage in 

unsafe or unsound practices; 

• Remove and prohibit officers and 

directors, negotiate agreements—both 

formal (i.e., public) and informal (i.e., nonpublic)—to change banking practices, and 

issue cease-and-desist orders as well as 

Civil Money Penalties (CMP); and

• Issue rules and regulations, legal 

interpretations, supervisory guidance, and 

corporate decisions governing investments, 

lending, and other practices. 

Through on-site examinations, the OCC 

assesses whether national banks and federal 

savings associations appropriately identify, 

account for, and follow prudent strategies for 

problem assets; and maintain a strong 

corporate governance culture that fosters 

sound loan underwriting standards, properly 

aligned incentive compensation structures, and 

strong internal controls, risk management, and 

compliance functions. 

The OCC continues to encourage lenders to 

work with creditworthy borrowers who may be 

facing financial difficulties. The OCC 

continues to be actively involved in the 

residential foreclosure oversight process to 

ensure that all foreclosures are handled 

consistent with regulatory requirements. 

While assessing credit quality, adequacy of 

loan loss reserves, interest rate risk and capital 

adequacy, risk management practices have 

been and continue to be areas of focus. 

Operational risk issues – the risk of loss due to 

failures of people, processes, systems, and 

external events – have become an area of 

heightened risk and supervisory attention. 

Strong enterprise risk management processes 

have been and will continue to be a point of 

emphasis, particularly at larger institutions. In 

addition, the OCC continues to assess and 

address supervisory issues in the areas of fair 

lending, consumer protection, Bank Secrecy 

Act/Anti-Money Laundering, and information 

security.

Operations are funded primarily 

(approximately 97 percent) from semiannual 

assessments levied on national banks and 

federal savings associations. Revenue from 

investments in Treasury securities and other 

income comprise the remaining three percent 

of the OCC’s funding. 

The OCC does not receive congressional 

appropriations to fund any portion of its 

operations. 

Explanation of Budget Activities

Supervise ($993,905,000 from 

revenue/offsetting collections) 

The Supervise program consists of ongoing 

supervision and enforcement activities 

undertaken to ensure that each national bank 

and federal savings institution is operating in a 

safe and sound manner and is complying with 

applicable laws, rules, and regulations relative 

to the financial institution and the customers 

and communities it serves. Included are 

examinations and enforcement activities; 

resolution of disputes through a formal 

appeals process; ongoing monitoring of 

national banks and federal savings 

associations; and analysis of systemic risks 

and market trends in the federal banking 

system, the financial services industry, and the 

economic and regulatory environment. 

Department of the Treasury - Budget in Brief 100
Regulate ($117,863,000 from 

revenue/offsetting collections) 

The Regulate program consists of ongoing 

activities that result in the establishment of 

regulations, policies, operating guidance, and 

interpretations of general applicability to 

national banks and federal savings 

associations. These regulations, policies, and 

interpretations may establish system-wide 

standards, define acceptable banking practices, 

provide guidance on risks and responsibilities 

facing national banks and federal savings 

associations, or prohibit (or restrict) banking 

practices deemed to be imprudent or unsafe. 

This includes the establishment of examination 

policies, handbooks, and interpretations for 

examiners as well as representation of the 

OCC’s regulatory authorities and 

interpretations in administrative, judicial, and 

congressional hearings. 

Charter ($21,532,000 from revenue/offsetting 

collections) 

The Charter program consists of ongoing 

activities that result in the chartering of 

national banks and federal savings associations 

as well as the evaluation of the permissibility 

of structures and activities of banks, federal 

savings association, and their subsidiaries. 

This includes the review and approval of new 

national bank and thrift charters, federal 

branches and agencies, mergers, acquisitions, 

conversions, business combinations, corporate 

reorganizations, changes in control, operating 

subsidiaries, branches, relocations, and 

subordinated debt issues. 

Legislative Proposals

OCC has no legislative proposals. 

OCC Performance by Budget Activity

Actual Actual Actual Target Target

Supervise Percent of National Banks and 

Federal Savings Associations with 

Composite CAMELS Rating 1 or 2

80.0 87.0 91.0 90.0 90.0

Supervise Percentage of National Banks and 

Federal Savings Associations That 

Are Categorized As Well 

Capitalized 

94.0 93.0 95.0 95.0 95.0

Supervise Percentage of National Banks and 

Federal Savings Associations With 

Consumer Compliance Rating of 1 

or 2

94.0 95.0 96.0 94.0 94.0

Supervise Rehabilitated National Banks And 

Federal Savings Associations As A 

Percentage Of Problem National 

Banks One Year Ago (CAMEL 3,4, 

or 5)

34.0 39.0 39.0 40.0 40.0

Supervise Total OCC Costs Relative To 

Every $100,000 in Bank And 

Federal Savings Associations 

Assets Regulated ($)

9.99 9.75 9.37 10.20 10.20

Charter Percentage of Licensing 

Applications and Notices 

Completed within Established 

Timeframes

97.0 98.0 97.0 95.0 95.0

Key: DISC – Discontinued

Department of the Treasury - Budget in Brief 101
Description of Performance

The OCC’s Supervision Program specifically 

supports the following Treasury Objectives: 

1.3: Complete implementation of financial 

regulatory reform initiatives and continue 

monitoring the markets for threats to stability;

1.4: Facilitate commerce by providing trusted 

and secure U.S. currency, products, and 

services for use by the public;

4.3: Improve the cybersecurity of our Nation’s 

financial sector critical infrastructure; and

4.4: Protect the integrity of the financial 

system by implementing, promoting, and 

enforcing anti-money laundering and 

counterterrorism financing standards.

 

The OCC charters, regulates and supervises all 

national banks and federal savings 

associations, as well as supervises federal 

branches and agencies of foreign banks. The 

primary goal of the OCC’s Supervision 

Program is to ensure that these institutions 

operate in a safe and sound manner and in 

compliance with laws requiring fair treatment 

of their customers and fair access to credit and 

financial products. The OCC’s Supervision 

Program supports the implementation of the 

financial regulatory reform initiatives 

including those in the Dodd-Frank Wall Street 

Reform and Consumer Protection Act as well 

as other regulatory initiatives designed to 

strengthen the nation’s federal banking 

system. The OCC also monitors risks and 

threats to the stability of the federal banking 

system through its regular examinations of the 

institutions it supervises and other monitoring 

programs such as its Semi-annual Risk 

Perspectives Report, participation in the 

Shared National Credit Program, and its Credit 

Underwriting Survey. 

The overall objective of the OCC’s 

Supervision Program supports facilitating 

commerce through the goal of ensuring the 

safety and soundness of the federal banking 

system. Through its Supervision Program the 

OCC supports facilitating commerce through 

the goal of ensuring the safety and soundness 

of the federal banking system. The OCC has 

taken a number of steps to improve the 

cybersecurity of the nation’s financial sector 

critical infrastructure including organizing 

webinars for community bankers. The agency 

continues to update examiner handbooks, 

procedures, and training materials to ensure 

that, as threats evolve, all national banks and 

federal savings associations can identify cyber 

risks and strengthen their risk management and 

control systems. The OCC is an active 

member of the Financial Services Information 

Sharing and Analysis Center, which provides 

greater real-time insight into a broad range of 

potential threats to the industry and the ability 

to assist, when appropriate, in a coordinated 

response with other government 

agencies. Finally, the OCC supports 

protecting the integrity of the financial system 

through its examinations of compliance with 

BSA/AML and through the initiation of 

enforcement actions for non-compliance with 

BSA/AML laws and regulations. 

The Federal Deposit Insurance Act established 

a system that classifies insured depository 

institutions into five categories (wellcapitalized, adequately capitalized, 

undercapitalized, significantly 

undercapitalized, and critically 

undercapitalized) based on their capital levels 

relative to their risks. Through September 30, 

2015, 95 percent of national banks and federal 

savings associations were classified as well 

capitalized. 

The composite CAMELS (Capital adequacy, 

Asset quality, Management, Earnings, 

Liquidity, and Sensitivity to market risk) 

rating reflects the overall condition of a bank. 

Bank regulatory agencies use the Uniform 

Financial Institutions Rating System, 

CAMELS, to provide a general framework for 

evaluating all significant financial, operational, 

Department of the Treasury - Budget in Brief 102
and compliance factors inherent in a bank. 

The rating scale is 1 through 5 of which 1 is 

the highest rating granted. CAMELS ratings 

are assigned at the completion of every 

supervisory cycle or when there is a significant 

event leading to a change in CAMELS. 

Through September 30, 2015, 91 percent of 

national banks and federal savings associations 

earned composite CAMELS rating of either 1 

or 2. 

Problem banks ultimately can reach a point at 

which rehabilitation is no longer feasible. The 

OCC’s early identification and intervention 

with problem banks can lead to successful 

remediation of these banks. The OCC 

recommends corrective actions to problem 

banks for improving their operations and, as a 

result, 39 percent of banks with composite 

CAMELS ratings of 3, 4, or 5 one year ago 

have improved their ratings to either 1 or 2 this

year. The OCC continues to focus on the early 

identification and rehabilitation of problem 

institutions.

To ensure fair access to financial services and 

fair treatment of bank customers, the OCC 

evaluates a bank’s compliance with consumer 

laws and regulations. Bank regulatory 

agencies use the Uniform Financial 

Institutions Rating System, Interagency 

Consumer Compliance Rating, to provide a 

general framework for assimilating and 

evaluating significant consumer compliance 

factors inherent in a bank. Each financial 

institution is assigned a consumer compliance 

rating based on an evaluation of its present 

compliance with consumer protection and civil 

rights statutes and regulations, and the 

adequacy of its operating systems designed to 

ensure continuing compliance. Ratings are on 

a scale of 1 through 5 in increasing order of 

supervisory concern. National banks and 

federal savings associations continue to show 

strong compliance with consumer protection 

regulations with 96 percent earning a 

consumer compliance rating of either 1 or 2 

through September 30, 2015. 

The OCC’s timely and effective approval of 

corporate applications contributes to the 

nation’s economy by enabling national banks 

and federal savings associations to complete 

various corporate transactions and introduce 

new financial products and services. Delays in 

providing prompt decisions on applications 

and notices can deprive a bank of a 

competitive or business opportunity, create 

business uncertainties, or diminish financial 

results. Time frames have been established for 

completing each type of application and 

notice. The OCC completed 97 percent of 

applications and notices within the time 

standard through September 30, 2015. 

The OCC monitors the efficient use of its 

resources by measuring Total OCC Costs 

Relative to Every $100,000 in Bank Assets 

Regulated. This measure reflects the 

efficiency of its operations while meeting the 

increasing supervisory demands of a growing 

and more complex financial system. This 

measure supports the OCC’s strategic goal of 

efficient use of agency resources. The OCC’s 

ability to control its costs while ensuring the 

safety and soundness of national banks and 

federal savings associations benefits all 

national bank and federal savings association 

customers. The OCC will continue its efforts 

to ensure that resources are used prudently and 

that programs are carried out in a cost effective 

manner.

Department of the Treasury - Budget in Brief 103
Department of the Treasury - Budget in Brief 104
International Programs

Program Summary

Dollars in Thousands

Budget Activity FY 2015 Enacted FY 2016 Enacted FY 2017 Request

Of which, payment 

toward unmet 

commitments

International Monetary Fund (IMF) $0 1/ $0 $0

Multilateral Development Banks (MDBs) Total $1,999,804 $1,816,477 $1,802,958 $150,040

Int'l Bank for Reconstruction and Development (IBRD) $186,957 $186,957 $5,963 $5,963

African Development Bank (AfDB) $32,418 $34,118 $32,418 $0

Asian Development Bank (AsDB) $106,586 $5,608 $0 $0

Inter-American Development Bank (IDB) $102,020 $102,020 $21,940 $21,940

North American Development (NADB) $0 $10,000 $45,000 $0

International Development Association (IDA) $1,287,800 $1,197,128 $1,384,072 $93,472

African Development Fund (AfDF) $175,668 $175,668 $214,332 $19,332

Asian Development Fund (AsDF) $104,977 $104,977 $99,233 $9,333

Multilateral Investment Fund (MIF) $3,378 $0 $0 $0

Food Security Total $30,000 $74,930 $53,000 $0

Global Agriculture and Food Security Program (GAFSP) 2/ $43,000 $23,000 $0

Int'l Fund for Agricultural Development (IFAD) $30,000 $31,930 $30,000 $0

Environmental Trust Funds Total $401,000 $398,563 $409,063 $10,000

Clean Technology Fund (CTF) $184,630 $170,680 $0 $0

Strategic Climate Fund (SCF) $49,900 $49,900 $0 $0

ESF Statutory Transfer 3/ $29,907 $9,720 $0 $0

Green Climate Fund (GCF) $0 $0 $250,000 $0

Central America and Caribbean Catastrophic Risk Insurance Program $0 $0 $12,500 $0

Global Environment Facility (GEF) $136,563 $168,263 $146,563 $10,000

Infrastructure $0 $0 $20,000 $0

Global Infrastructure Facility (GIF) $0 $0 $20,000 $0

Treasury Office of Technical Assistance $23,500 $23,500 $33,500 $0

TOTAL $2,454,304 $2,313,470 $2,318,521 $160,040

1/ The Consolidated Appropriations Act, 2016 includes IMF quota reform. The reforms will not be funded through Treasury's 150s Account, but rather through emergency funding.

2/ Includes permissive transfer authority from USAID to GAFSP, if such contribution will not cause the United States' contribution to exceed 33 percent of total donor contributions.

3/ Provided by sec. 7060(c)(8) of the Consolidated and Further Continuing Appropriations Act, 2015 and sec. 7060(c)(5) of the Consolidated Appropriations Act, 2016.

Department of the Treasury - Budget in Brief 105
Summary

The Treasury Department requests $2.3 

billion for International Programs in 

FY 2017. The request provides a cost 

effective way to provide leadership in 

international development, advance national 

security, and expand export markets for 

American businesses by promoting 

international financial stability and supporting 

key global initiatives such as poverty 

reduction, improved food security, 

infrastructure investments, and climate 

change mitigation and adaptation. 

Multilateral Development Banks

Treasury requests $105.3 million for annual 

general capital increase (GCI) commitments 

at the multilateral development banks 

(MDBs). GCI payments for the African 

Development Bank (AfDB) are scheduled to 

continue through FY 2019. GCI payments for 

the North American Development Bank 

(NADB) are scheduled to continue through 

FY 2021. FY 2017 is the first year since 

FY 2012 that funding is not requested for 

scheduled annual installments at the World 

Bank’s International Bank for Reconstruction 

and Development (IBRD) and the InterAmerican Development Bank (IDB), whose 

GCIs conclude during FY 2016. The 

FY 2017 request includes $22 million to clear 

unmet commitments to the IDB and $6 

million to clear unmet commitments to the 

IBRD. The IBRD funding will protect U.S. 

shareholding at the World Bank by avoiding a 

forfeiture of shares by the United States.

The request also includes $1.6 billion to fully 

meet annual replenishment commitments to 

the World Bank’s International Development 

Association (IDA), the African Development 

Fund (AfDF), and the Asian Development 

Fund (AsDF). 

Food Security

The request includes $23 million for the 

Global Agriculture and Food Security 

Program (GAFSP), the multilateral 

component of the President’s Feed the Future 

initiative. In 2012, the United States pledged 

to contribute $1 for every $2 in new 

contributions by other donors up to $475 

million during the pledge period. While U.S. 

leadership of GAFSP has been an important 

component of its success to date, the 

Administration continues to work with other 

donors to increase their contributions and to 

strive for a United States’ share of 

contributions of no more than one-third of 

total contributions since GAFSP’s inception 

in 2010. In addition, the request includes the 

second payment of $30 million towards the 

current replenishment of the International 

Fund for Agricultural Development (IFAD). 

Environment and Clean Energy

Treasury’s request fully funds the annual 

installation of the replenishment commitment 

to the Global Environment Facility (GEF) at 

$137 million. Also, the request includes $250 

million toward the U.S. pledge to the Green 

Climate Fund (GCF), providing a total of 

$750 million for the GCF when combined 

with $500 million requested through the 

Department of State. Joining other nations, 

the United States in 2014 pledged $3 billion – 

not to exceed 30 percent of total confirmed 

pledges – to the GCF, which has received 

over $10 billion in pledges to support the 

transition of developing countries to a lowemission and climate resilient development 

path. The GCF includes innovative 

mechanisms to help mobilize significant 

private-sector finance and is building on the 

best practices and lessons learned from the 

Climate Investment Funds (CIFs), to which 

the United States has contributed with 

bipartisan support. FY 2017 is the first year 

since the United States made its original 

pledge to the CIFs that funding is not 

Department of the Treasury - Budget in Brief 106
requested for the CIFs because the $2 billion 

pledge has been fulfilled. 

The request also includes $13 million for the 

Central America and Caribbean Catastrophe 

Risk Insurance Program multi-donor trust 

fund. This is the first time Treasury has 

requested funding for CCRIF. A U.S. 

contribution will help the six countries of 

Central America plus the Dominican Republic 

purchase catastrophe risk insurance coverage 

under the CCRIF Segregated Portfolio 

Company and access technical assistance to 

enhance their disaster risk management 

capacity, improving their resilience to natural 

disasters. 

Infrastructure

Treasury’s request includes $20 million for 

U.S. support to new infrastructure 

investments for the World Bank Global 

Infrastructure Facility (GIF). The GIF aims 

to catalyze private capital for public 

infrastructure projects by addressing 

constraints arising from countries’ legal and 

regulatory regimes, project design and 

implementation, and project and financing 

structures. Participation in this initiative will 

demonstrate a commitment to helping 

developing and emerging markets, bolster 

existing infrastructure financing from the 

MDBs, and reinforce U.S. leadership at the 

World Bank. 

Unmet Commitments

U.S. unmet commitments, which are 

approaching $1.6 billion, erode U.S. 

leadership and influence, pose a threat to 

shaping the policy priorities of the MDBs and 

related funds, and hamper the ability of these 

entities to deliver results. The FY 2017 

request would reduce these unmet 

commitments by $160 million for both GCIs 

and replenishments. In making allocations, 

Treasury has prioritized unmet commitments 

at institutions where contributions will most 

effectively showcase strong U.S. leadership of 

and commitment to the international financial 

architecture. The U.S. endeavors to avoid 

incurring new unmet commitments, but will 

not fully achieve that goal due to new unmet 

commitments to the Multilateral Debt Relief 

Initiative (MDRI).

Specifically, the FY 2017 request allocates 

$93 million for unmet commitments at IDA. 

The approximately $777 million in U.S. 

unmet commitments to IDA severely 

constrain IDA’s overall programming 

capacity. Paying down unmet commitments 

would demonstrate sustained support for this 

global institution, which makes critical 

contributions to fragile states, citizen security 

in Central America, international efforts to 

address disaster responsiveness, and 

infrastructure financing for the world’s 

poorest countries. Additionally, 

demonstrating strong progress towards 

meeting the IDA and IBRD commitments is 

critical for maintaining U.S. leadership in the 

World Bank. 

The FY 2017 request includes $19 million to 

pay down U.S. unmet commitments to the 

AfDF. The nearly $227 million in U.S. unmet 

commitments constrain the AfDF’s capacity 

to make new investments. Paying down some 

of the U.S. unmet commitments would 

increase AfDF assistance, including support 

for Power Africa, as well as the fight against 

extremism and instability on that continent. 

Treasury’s FY 2017 request allocates $9 

million for unmet commitments at the AsDF, 

which is the largest on-budget financier of 

infrastructure and other services in 

Afghanistan. The AsDF also promotes 

energy sector reform in Pakistan, bolsters the 

democratic transition in Burma, and helps 

strategic partners in Central Asia reduce their 

economic dependence on Russia. 

Department of the Treasury - Budget in Brief 107
The FY 2017 request includes $10 million for 

unmet GEF commitments, which total $180 

million ($135 million from GEF-2 and $45 

million from GEF-6). These resources will 

further increase the GEF’s ability to fund 

environmental projects that support key U.S. 

priorities, such as the President’s Executive 

Order on Combating Wildlife Trafficking and 

reducing mercury emissions that contaminate 

our food supply. Addressing these unmet 

commitments will help position the United 

States to capture a GEF-6 encashment bonus 

for prompt payment. 

Treasury Office of Technical Assistance

The FY 2017 request includes $33.5 million 

for Treasury’s Office of Technical Assistance 

(OTA), representing a $10 million increase 

over the FY 2016 enacted level. The 

requested increase would be a down payment 

on Secretary Lew’s commitment at the 

Financing for Development conference 

(Ethiopia, July 2015) to double OTA 

assistance by 2020 to support developing 

countries’ domestic resource mobilization and 

sound public financial management. If 

received, this significant and critical funding 

increase will help enable OTA to respond in a 

quick and sustained manner to the growing 

international demand for financial technical 

assistance around the world, thereby 

supporting U.S. national security, foreign 

policy, and economic development priorities, 

including, for instance, supporting the whole 

of government effort to expand U.S. 

engagement in Central America.

Department of the Treasury - Budget in Brief 108
Summary of FY 2017 Appropriations Language

Below is a summary of proposed Treasury 

appropriations language changes from the FY 

2016 enacted bill. Please note that brackets 

indicate which material will be deleted, and 

italics indicate which material will be inserted. 

DEPARTMENTAL OFFICES

SALARIES AND EXPENSES

For necessary expenses of the Departmental 

Offices including operation and maintenance 

of the Treasury Building and [Annex]

Freedman's Bank Building; hire of passenger 

motor vehicles; maintenance, repairs, and 

improvements of, and purchase of commercial 

insurance policies for, real properties leased or 

owned overseas, when necessary for the 

performance of official business; executive 

direction program activities; international 

affairs and economic policy activities; 

domestic finance and tax policy activities, 

including technical assistance to [Puerto 

Rico] state and local entities; terrorism and 

financial intelligence activities; and Treasurywide management policies and programs

activities, [$222,500,000] $334,376,000: 

Provided, That of the amount appropriated 

under this heading—(1) Not less than 

$117,000,000 is for the Office of Terrorism

and Financial Intelligence to safeguard the 

financial system against illicit use and to 

combat rogue nations, terrorist facilitators, 

weapons of mass destruction proliferators, 

money launderers, drug kingpins, and other 

national security threats;(2) not to exceed 

$350,000 is for official reception and 

representation expenses; ([2]3) not to exceed

$258,000 is for unforeseen emergencies of a 

confidential nature to be allocated and

expended under the direction of the Secretary

of the Treasury and to be accounted for solely 

on the Secretary's certificate; and ([3]4) not 

to exceed [$22,200,000] $22,000,000 shall

remain available until September 30, 

[2017]2018, for—(A) the Treasury-wide

Financial Statement Audit and Internal Control 

Program; (B) information technology 

modernization requirements; (C) [the audit, 

oversight, and administration of the Gulf Coast

Restoration Trust Fund; and] support for the 

Office of Terrorism and Financial 

Intelligence; (D) the development and 

implementation of programs within the Office 

of Critical Infrastructure Protection and 

Compliance Policy, including entering into 

cooperative agreements; and (E) international 

operations: Provided further, That, in addition 

to the amount otherwise made available under

this heading, $7,000,000 shall remain

available until September 30, 2018, for 

necessary expenses for carrying out subtitle F 

of title I of division A of Public Law 112–141, 

to be derived from the trust fund established 

under section 1602 of such Public Law, 

without altering the percentages of funds made 

available for other purposes from the 

remaining balance of the trust fund. 

OFFICE OF TERRORISM AND 

FINANCIAL INTELLIGENCE

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

[For the necessary expenses of the Office of 

Terrorism and Financial Intelligence to 

safeguard the financial system against illicit 

use and to combat rogue nations, terrorist 

facilitators, weapons of mass destruction 

proliferators, money launderers, drug 

kingpins, and other national security threats, 

$117,000,000: Provided, That of the amount 

appropriated under this heading: (1) not to 

exceed $27,100,000 is available for 

administrative expenses; and (2) $5,000,000, 

to remain available until September 30, 2017.]

Department of the Treasury - Budget in Brief 109
CYBERSECURITY ENHANCEMENT 

ACCOUNT

SALARIES AND EXPENSES

For salaries and expenses for enhanced 

cybersecurity for systems operated by the 

Department of the Treasury, $109,827,000, to 

remain available until September 30, 2019: 

Provided, That amounts made available under 

this heading shall be in addition to other 

amounts available to Treasury offices and 

bureaus for cybersecurity: Provided further, 

That amounts made available under this 

heading may be obligated and expended 

through allocation accounts available to 

individual offices and bureaus. 

DEPARTMENT-WIDE SYSTEMS AND 

CAPITAL INVESTMENTS PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

For development and acquisition of automatic 

data processing equipment, software, and 

services and for repairs and renovations to 

buildings owned by the Department of the 

Treasury, $5,000,000, to remain available 

until September 30, [2018] 2019: Provided, 

That these funds shall be transferred to 

accounts and in amounts as necessary to 

satisfy the requirements of the Department's 

offices, bureaus, and other organizations: 

Provided further, That this transfer authority 

shall be in addition to any other transfer 

authority provided in this Act [: Provided 

further, That none of the funds appropriated 

under this heading shall be used to support or 

supplement "Internal Revenue Service, 

Operations Support" or "Internal Revenue 

Service, Business Systems Modernization"]. 

OFFICE OF THE INSPECTOR 

GENERAL

SALARIES AND EXPENSES

For necessary expenses of the Office of 

Inspector General in carrying out the 

provisions of the Inspector General Act of 

1978, [$35,416,000] $37,044,000, including 

hire of passenger motor vehicles; of which not 

to exceed $100,000 shall be available for 

unforeseen emergencies of a confidential 

nature, to be allocated and expended under the 

direction of the Inspector General of the 

Treasury; of which up to $2,800,000, to 

remain available until September 30, [2017] 

2018, shall be for audits and investigations 

conducted pursuant to section 1608 of the 

Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived 

Economies of the Gulf Coast States Act of 

2012 (33 U.S.C. 1321 note) [; and of which 

not to exceed $1,000 shall be available for 

official reception and representation 

expenses].

TREASURY INSPECTOR GENERAL 

FOR TAX ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses of the Treasury 

Inspector General for Tax Administration in 

carrying out the Inspector General Act of 

1978, as amended, including purchase and 

hire of passenger motor vehicles (31 U.S.C. 

1343(b)); and services authorized by 5 U.S.C. 

3109, at such rates as may be determined by 

the Inspector General for Tax Administration; 

[$167,275,000] $169,634,000, of which 

$5,000,000 shall remain available until 

September 30, [2017] 2018; of which not to 

exceed $6,000,000 shall be available for 

official travel expenses; of which not to 

exceed $500,000 shall be available for 

unforeseen emergencies of a confidential 

nature, to be allocated and expended under the 

direction of the Inspector General for Tax 

Administration [; and of which not to exceed 

$1,500 shall be available for official reception 

and representation expenses]. 

TREASURY FORFEITURE FUND

[(RESCISSION)] (CANCELLATION)

Of the unobligated balances available under 

this heading, [$700,000,000] $657,000,000 are 

Department of the Treasury - Budget in Brief 110
[rescinded] hereby permanently cancelled not 

later than September 30, 2017.

TREASURY FRANCHISE FUND

For provision of necessary financial and 

administrative support services by the 

Administrative Resource Center to implement 

requirements of the Digital Accountability and 

Transparency Act (DATA Act; Public Law 13–

101) for Federal agencies, $3,000,000, to 

remain available until expended: Provided, 

That such amount shall be in addition to any 

other amounts available for such purpose. 

COMMUNITY DEVELOPMENT 

FINANCIAL INSTITUTIONS FUND 

PROGRAM ACCOUNT

To carry out the Riegle Community 

Development and Regulatory Improvements 

Act of 1994 (subtitle A of title I of Public Law 

103–325), including services authorized by 

section 3109 of title 5, United States Code, but 

at rates for individuals not to exceed the per 

diem rate equivalent to the rate for EX-3, 

[$233,523,000] $245,923,000. Of the amount 

appropriated under this heading—(1) not less 

than $153,423,000, notwithstanding section 

108(e) of Public Law 103–325 (12 U.S.C. 

4707(e)) with regard to Small and/or 

Emerging Community Development Financial 

Institutions Assistance awards, is available 

until September 30, [2017]2018, for financial 

assistance and technical assistance under 

subparagraphs (A) and (B) of section 

108(a)(1), respectively, of Public Law 103–

325 (12 U.S.C. 4707(a)(1)(A) and (B)), of 

which up to [$3,102,500] $2,882,500 may be

used for the cost of direct loans: Provided, 

That the cost of direct and guaranteed loans, 

including the cost of modifying such loans, 

shall be as defined in section 502 of the 

Congressional Budget Act of 1974: Provided 

further, That these funds are available to 

subsidize gross obligations for the principal 

amount of direct loans not to exceed 

$25,000,000; (2) not less than $15,500,000, 

notwithstanding section 108(e) of Public Law 

103–325 (12 U.S.C. 4707(e)), is available 

until September 30, [2017]2018, for financial 

assistance, technical assistance, training and 

outreach programs designed to benefit Native 

American, Native Hawaiian, and Alaskan 

Native communities and provided primarily 

through qualified community development 

lender organizations with experience and 

expertise in community development banking 

and lending in Indian country, Native 

American organizations, tribes and tribal 

organizations, and other suitable providers; 

(3) not less than $19,000,000 is available until 

September 30, [2017]2018, for the Bank 

Enterprise Award program; (4) not less than 

$22,000,000, notwithstanding subsections (d) 

and (e) of section 108 of Public Law 103–325 

(12 U.S.C. 4707(d) and (e)), is available until 

September 30, [2017]2018, for a Healthy 

Food Financing Initiative to provide financial 

assistance, technical assistance, training, and 

outreach to community development financial 

institutions for the purpose of offering 

affordable financing and technical assistance 

to expand the availability of healthy food 

options in distressed communities; (5) up to 

[$23,600,000] $26,000,000 is available until 

September 30, [2016]2018, for administrative 

expenses, including administration of CDFI 

fund programs and the New Markets Tax 

Credit Program, of which [not less than 

$1,000,000 is for capacity building to expand 

CDFI investments in underserved rural areas, 

and] up to $300,000 is for administrative 

expenses to carry out the direct loan program; 

[and] (6) not less than $10,000,000 is 

available until September 30, 2018, to provide 

grants for loan loss reserve funds and to 

provide technical assistance for small dollar 

loan programs under section 1206 of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Public Law 111–

203); and ([6]7) during fiscal year 

[2016]2017, none of the funds available under 

Department of the Treasury - Budget in Brief 111
this heading are available for the cost, as 

defined in section 502 of the Congressional 

Budget Act of 1974, of commitments to 

guarantee bonds and notes under section 114A 

of the Riegle Community Development and 

Regulatory Improvement Act of 1994 (12 

U.S.C. 4713a): Provided, That commitments 

to guarantee bonds and notes under such 

section 114A shall not exceed [$750,000,000] 

$1,000,000,000: Provided further, That such 

section 114A shall remain in effect until 

September 30, [2016]2017. 

SPECIAL INSPECTOR GENERAL FOR 

THE TROUBLED ASSET RELIEF 

PROGRAM

SALARIES AND EXPENSES

For necessary expenses of the Office of the 

Special Inspector General in carrying out the 

provisions of the Emergency Economic 

Stabilization Act of 2008 (Public Law 110–

343), [$40,671,000] $41,160,000.

FINANCIAL CRIMES ENFORCEMENT 

NETWORK

SALARIES AND EXPENSES

For necessary expenses of the Financial 

Crimes Enforcement Network, including hire 

of passenger motor vehicles; travel and 

training expenses of non-Federal and foreign 

government personnel to attend meetings and 

training concerned with domestic and foreign 

financial intelligence activities, law 

enforcement, and financial regulation; services 

authorized by 5 U.S.C. 3109; not to exceed 

$10,000 for official reception and 

representation expenses; and for assistance to 

Federal law enforcement agencies, with or 

without reimbursement, [$112,979,000] 

$115,003,000, of which not to exceed 

$34,335,000 shall remain available until 

September 30, [2018]2019. 

BUREAU OF THE FISCAL SERVICE

SALARIES AND EXPENSES

For necessary expenses of operations of the 

Bureau of the Fiscal Service, [$363,850,000] 

$353,057,000; of which not to exceed 

$4,210,000, to remain available until 

September 30, [2018] 2019, is for information 

systems modernization initiatives; and of 

which $5,000 shall be available for official 

reception and representation expenses [; and 

of which not to exceed $19,800,000, to remain 

available until September 30, 2018, is to 

support the Department's activities related to 

implementation of the Digital Accountability 

and Transparency Act (DATA Act; Public 

Law 113–101), including changes in business 

processes, workforce, or information 

technology to support high quality, transparent 

Federal spending information]. In addition, 

$165,000, to be derived from the Oil Spill 

Liability Trust Fund to reimburse 

administrative and personnel expenses for 

financial management of the Fund, as 

authorized by section 1012 of Public Law 

101–380. 

ALCOHOL AND TOBACCO TAX AND 

TRADE BUREAU

SALARIES AND EXPENSES

For necessary expenses of carrying out section 

1111 of the Homeland Security Act of 2002, 

including hire of passenger motor vehicles, 

$106,439,000; of which not to exceed $6,000 

for official reception and representation 

expenses; not to exceed $50,000 for 

cooperative research and development 

programs for laboratory services; and 

provision of laboratory assistance to State and 

local agencies with or without reimbursement: 

Provided, That of the amount appropriated 

under this heading, [$5,000,000 shall be for 

the costs of accelerating the processing of 

formula and label applications] such sums as 

are necessary shall be available to fully 

support tax enforcement and compliance 

activities including tax compliance to address 

the Federal tax gap, as specified for purposes 

of section 251(b)(2) of the Balanced Budget

Department of the Treasury - Budget in Brief 112
and Emergency Deficit Control Act of 1985, 

as amended. 

UNITED STATES MINT PUBLIC 

ENTERPRISE FUND

Pursuant to section 5136 of title 31, United 

States Code, the United States Mint is 

provided funding through the United States 

Mint Public Enterprise Fund for costs 

associated with the production of circulating 

coins, numismatic coins, and protective 

services, including both operating expenses 

and capital investments: Provided, That the 

aggregate amount of new liabilities and 

obligations incurred during fiscal year [2016] 

2017 under such section 5136 for circulating 

coinage and protective service capital 

investments of the United States Mint shall 

not exceed [$20,000,000] $30,000,000. 

INTERNAL REVENUE SERVICE

TAXPAYER SERVICES

For necessary expenses of the Internal 

Revenue Service to provide taxpayer services, 

including pre-filing assistance and education, 

filing and account services, taxpayer advocacy 

services, and other services as authorized by 5 

U.S.C. 3109, at such rates as may be 

determined by the Commissioner, 

[$2,156,554,000] $2,406,318,000, of which 

not less than $6,500,000 shall be for the Tax 

Counseling for the Elderly Program, of which 

not less than $12,000,000 shall be available 

for low-income taxpayer clinic grants, [and] of 

which not less than [$15,000,000, to] 

$191,822,000 shall remain available until 

September 30, [2017, shall be available for a 

Community Volunteer Income Tax Assistance 

matching grants program for tax return 

preparation assistance] 2018, and of which not 

less than $206,000,000 shall be available for 

operating expenses of the Taxpayer Advocate 

Service: Provided, That of the amounts made 

available for the Taxpayer Advocate Service, 

not less than $5,000,000 shall be for identity 

theft casework: Provided further, That, of the 

amounts made available until September 30, 

2018, not less than $15,000,000 shall be 

available for a Community Volunteer Income 

Tax Assistance matching grants program for 

tax return preparation assistance. 

ENFORCEMENT

For necessary expenses for tax enforcement 

activities of the Internal Revenue Service to 

determine and collect owed taxes, to provide 

legal and litigation support, to conduct 

criminal investigations, to enforce criminal 

statutes related to violations of internal 

revenue laws and other financial crimes, to 

purchase and hire passenger motor vehicles 

(31 U.S.C. 1343(b)), and to provide other 

services as authorized by 5 U.S.C. 3109, at 

such rates as may be determined by the 

Commissioner, [$4,860,000,000] 

$5,216,263,000, of which not to exceed 

[$50,000,000] $54,936,000 shall remain 

available until September 30, [2017] 2018, 

and of which not less than $60,257,000 shall 

be for the Interagency Crime and Drug 

Enforcement program: Provided, That, of the 

amounts provided under this heading, not less 

than $231,344,000, of which $5,000,000 shall 

be transferred to the Alcohol and Tobacco Tax 

and Trade Bureau, shall be for an additional 

appropriation for tax activities, including tax 

compliance to address the Federal tax gap, as 

specified for purposes of section 251(b)(2) of 

the Balanced Budget and Emergency Deficit 

Control Act of 1985, as amended.

OPERATIONS SUPPORT

For necessary expenses of the Internal 

Revenue Service to support taxpayer services 

and enforcement programs, including rent 

payments; facilities services; printing; 

postage; physical security; headquarters and 

other IRS-wide administration activities; 

research and statistics of income; 

telecommunications; information technology 

development, enhancement, operations, 

maintenance, and security; the hire of 

Department of the Treasury - Budget in Brief 113
passenger motor vehicles (31 U.S.C. 1343(b)); 

the operations of the Internal Revenue Service 

Oversight Board; and other services as 

authorized by 5 U.S.C. 3109, at such rates as 

may be determined by the Commissioner; 

[$3,638,446,000] $4,314,099,000, of which 

not to exceed [$50,000,000] $158,242,000 

shall remain available until September 30, 

[2017]2018; of which not to exceed 

$10,000,000 shall remain available until 

expended for acquisition of equipment and 

construction, repair and renovation of 

facilities; of which not to exceed $1,000,000 

shall remain available until September 30, 

[2018]2019, for research; of which not to 

exceed [$20,000] $25,000 shall be for official 

reception and representation expenses: 

Provided, That not later than 30 days after the 

end of each quarter, the Internal Revenue 

Service shall submit a report to the 

Committees on Appropriations of the House 

of Representatives and the Senate and the 

Comptroller General of the United States 

detailing the cost and schedule performance 

for its major information technology 

investments, including the purpose and lifecycle stages of the investments; the reasons 

for any cost and schedule variances; the risks 

of such investments and strategies the Internal 

Revenue Service is using to mitigate such 

risks; and the expected developmental 

milestones to be achieved and costs to be 

incurred in the next quarter: Provided further, 

That the Internal Revenue Service shall 

include, in its budget justification for fiscal 

year [2017]2018, a summary of cost and 

schedule performance information for its 

major information technology systems: 

Provided further, That, of the amounts 

provided under this heading, such sums as are 

necessary shall be available to fully support 

tax enforcement and compliance activities, 

including not less than $283,404,000, for an 

additional appropriation for tax activities, 

including tax compliance to address the 

Federal tax gap, as specified for purposes of 

Section 251(b)(2) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as 

amended. 

BUSINESS SYSTEMS 

MODERNIZATION

For necessary expenses of the Internal 

Revenue Service's business systems 

modernization program, [$290,000,000] 

$343,415,000, to remain available until 

September 30, [2018] 2019, for the capital 

asset acquisition of information technology

systems, including management and related 

contractual costs of said acquisitions,

including related Internal Revenue Service 

labor costs, and contractual costs associated 

with operations authorized by 5 U.S.C. 3109: 

Provided, That not later than 30 days after the 

end of each quarter, the Internal Revenue 

Service shall submit a report to the 

Committees on Appropriations of the House 

of Representatives and the Senate and the 

Comptroller General of the United States 

detailing the cost and schedule performance 

for CADE 2 and Modernized e-File 

information technology investments, including 

the purposes and life-cycle stages of the 

investments; the reasons for any cost and 

schedule variances; the risks of such 

investments and the strategies the Internal 

Revenue Service is using to mitigate such 

risks; and the expected developmental 

milestones to be achieved and costs to be 

incurred in the next quarter.

ADMINISTRATIVE PROVISIONS— 

INTERNAL REVENUE SERVICE

(INCLUDING TRANSFER OF FUNDS)

SEC. 101. Not to exceed 5 percent of any 

appropriation made available in this Act to the 

Internal Revenue Service may be transferred 

to any other Internal Revenue Service 

appropriation upon the advance [approval] 

notification of the Committees on 

Appropriations. 

Department of the Treasury - Budget in Brief 114
SEC. 102. The Internal Revenue Service shall 

maintain an employee training program, 

which shall include the following topics: 

taxpayers' rights, dealing courteously with 

taxpayers, cross-cultural relations, ethics, and 

the impartial application of tax law.

SEC. 103. The Internal Revenue Service shall 

institute and enforce policies and procedures 

that will safeguard the confidentiality of 

taxpayer information and protect taxpayers 

against identity theft.

SEC. 104. Funds made available by this or 

any other Act to the Internal Revenue Service 

shall be available for improved facilities and 

increased staffing to provide sufficient and 

effective 1–800 help line service for 

taxpayers. The Commissioner shall continue 

to make improvements to the Internal 

Revenue Service 1–800 help line service a 

priority and allocate resources necessary to 

enhance the response time to taxpayer 

communications, particularly with regard to 

victims of tax-related crimes. 

[SEC. 105. None of the funds made available 

to the Internal Revenue Service by this Act 

may be used to make a video unless the 

Service-Wide Video Editorial Board 

determines in advance that making the video 

is appropriate, taking into account the cost, 

topic, tone, and purpose of the video.] 

SEC. [106]105. The Internal Revenue Service 

shall issue a notice of confirmation of any 

address change relating to an employer 

making employment tax payments, and such 

notice shall be sent to both the employer's 

former and new address and an officer or 

employee of the Internal Revenue Service 

shall give special consideration to an offer-incompromise from a taxpayer who has been the 

victim of fraud by a third party payroll tax 

preparer.

[SEC. 107. None of the funds made available 

under this Act may be used by the Internal 

Revenue Service to target citizens of the 

United States for exercising any right 

guaranteed under the First Amendment to the 

Constitution of the United States.] 

[SEC. 108. None of the funds made available 

in this Act may be used by the Internal 

Revenue Service to target groups for 

regulatory scrutiny based on their ideological 

beliefs.] 

[SEC. 109. None of funds made available by 

this Act to the Internal Revenue Service shall 

be obligated or expended on conferences that 

do not adhere to the procedures, verification

processes, documentation requirements, and 

policies issued by the Chief Financial Officer, 

Human Capital Office, and Agency-Wide 

Shared Services as a result of the 

recommendations in the report published on 

May 31, 2013, by the Treasury Inspector 

General for Tax Administration entitled 

"Review of the August 2010 Small 

Business/Self-Employed Division's 

Conference in Anaheim, California" 

(Reference Number 2013–10–037).] 

[SEC. 110. None of the funds made available 

in this Act to the Internal Revenue Service 

may be obligated or expended—(1) to make a 

payment to any employee under a bonus, 

award, or recognition program; or (2) under 

any hiring or personnel selection process with 

respect to re-hiring a former employee, unless 

such program or process takes into account the 

conduct and Federal tax compliance of such 

employee or former employee.] 

[SEC. 111. None of the funds made available 

by this Act may be used in contravention of 

section 6103 of the Internal Revenue Code of 

1986 (relating to confidentiality and disclosure 

of returns and return information).] 

[SEC. 112. Except to the extent provided in 

section 6014, 6020, or 6201(d) of the Internal 

Revenue Code of 1986, no funds in this or any 

other Act shall be available to the Secretary of 

the Treasury to provide to any person a 

proposed final return or statement for use by 

such person to satisfy a filing or reporting 

requirement under such Code.] 

Department of the Treasury - Budget in Brief 115
[SEC. 113. In addition to the amounts 

otherwise made available in this Act for the 

Internal Revenue Service, $290,000,000, to be 

available until September 30, 2017, shall be 

transferred by the Commissioner to the 

"Taxpayer Services", "Enforcement", or 

"Operations Support" accounts of the Internal 

Revenue Service for an additional amount to 

be used solely for measurable improvements 

in the customer service representative level of 

service rate, to improve the identification and 

prevention of refund fraud and identity theft, 

and to enhance cybersecurity to safeguard 

taxpayer data: Provided, That such funds shall 

supplement, not supplant any other amounts 

made available by the Internal Revenue 

Service for such purpose: Provided further, 

That such funds shall not be available until the 

Commissioner submits to the Committees on 

Appropriations of the House of 

Representatives and the Senate a spending 

plan for such funds: Provided further, That 

such funds shall not be used to support any 

provision of Public Law 111–148, Public Law 

111–152, or any amendment made by either 

such Public Law.] 

SEC. 106. Section 9503(a) of title 5, United 

States Code, is amended by striking the clause 

"before September 30, 2013" and inserting 

"before September 30, 2021". 

SEC. 107. Section 9503(a)(5) of title 5, United 

States Code, is amended by inserting before 

the semicolon the following: "renewable for 

an additional two years, based on a critical 

organizational need". 

SEC. 108. Section 1344(b)(6) of title 31, 

United States Code, is amended by adding a 

comma before "the Administrator of the Drug 

Enforcement Administration", by striking 

"and" after "Drug Enforcement 

Administration", and by inserting ", and the 

Commissioner of Internal Revenue" after 

"National Aeronautics and Space 

Administration".

ADMINISTRATIVE PROVISIONS—

DEPARTMENT OF THE TREASURY

(INCLUDING TRANSFERS OF FUNDS)

SEC. 114. Appropriations to the Department 

of the Treasury in this Act shall be available 

for uniforms or allowances therefor, as 

authorized by law (5 U.S.C. 5901), including 

maintenance, repairs, and cleaning; purchase 

of insurance for official motor vehicles 

operated in foreign countries; purchase of 

motor vehicles without regard to the general 

purchase price limitations for vehicles 

purchased and used overseas for the current 

fiscal year; entering into contracts with the 

Department of State for the furnishing of 

health and medical services to employees and 

their dependents serving in foreign countries; 

and services authorized by 5 U.S.C. 3109.

SEC. 115. Not to exceed 2 percent of any 

appropriations in this title made available

under the headings "Departmental Offices—

Salaries and Expenses", "Office of Inspector 

General", "Special Inspector General for the 

Troubled Asset Relief Program", "Community 

Development Financial Institutions Fund"

,"Financial Crimes Enforcement Network", 

"Bureau of the Fiscal Service", and "Alcohol 

and Tobacco Tax and Trade Bureau" may be 

transferred between such appropriations upon 

the advance [approval]notification of the 

Committees on Appropriations of the House 

of Representatives and the Senate: Provided, 

[That, upon advance approval of such

Committees, not to exceed 2 percent of any 

such appropriations may be transferred to the 

"Office of Terrorism and Financial 

Intelligence": Provided further,] That no

transfer under this section may increase or 

decrease any such appropriation by more than 

2 percent.

SEC. 116. Not to exceed 2 percent of any 

appropriation made available in this Act to the 

Internal Revenue Service may be transferred 

to the Treasury Inspector General for Tax 

Administration's appropriation upon the 

advance [approval]notification of the 

Department of the Treasury - Budget in Brief 116
Committees on Appropriations of the House 

of Representatives and the Senate: Provided, 

That no transfer may increase or decrease any 

such appropriation by more than 2 percent. 

SEC. 117. None of the funds appropriated in 

this Act or otherwise available to the

Department of the Treasury or the Bureau of 

Engraving and Printing may be used to 

redesign the $1 Federal Reserve note. 

SEC. 118. The Secretary of the Treasury may 

transfer funds from the "Bureau of the Fiscal 

Service-Salaries and Expenses" to the Debt 

Collection Fund as necessary to cover the 

costs of debt collection: Provided, That such 

amounts shall be reimbursed to such salaries 

and expenses account from debt collections 

received in the Debt Collection Fund. 

SEC. 119. None of the funds appropriated or 

otherwise made available by this or any other 

Act may be used by the United States Mint to 

construct or operate any museum without the 

[explicit approval]prior notification of the 

Committees on Appropriations of the House 

of Representatives and the Senate, the House 

Committee on Financial Services, and the 

Senate Committee on Banking, Housing, and 

Urban Affairs.

SEC. 120. None of the funds appropriated or 

otherwise made available by this or any other 

Act or source to the Department of the 

Treasury, the Bureau of Engraving and 

Printing, and the United States Mint, 

individually or collectively, may be used to 

consolidate any or all functions of the Bureau 

of Engraving and Printing and the United 

States Mint without the [explicit 

approval]prior notification of the House

Committee on Financial Services; the Senate 

Committee on Banking, Housing, and Urban 

Affairs; and the Committees on 

Appropriations of the House of 

Representatives and the Senate.

SEC. 121. Funds appropriated by this Act, or 

made available by the transfer of funds in this 

Act, for the Department of the Treasury's 

intelligence or intelligence related activities 

are deemed to be specifically authorized by 

the Congress for purposes of section 504 of 

the National Security Act of 1947 (50 U.S.C. 

414) during fiscal year [2016]2017 until the 

enactment of the Intelligence Authorization 

Act for Fiscal Year [2016]2017. 

SEC. 122. Not to exceed $5,000 shall be made 

available from the Bureau of Engraving and 

Printing's Industrial Revolving Fund for 

necessary official reception and representation 

expenses.

SEC. 123. The Secretary of the Treasury shall 

submit a Capital Investment Plan to the 

Committees on Appropriations of the Senate 

and the House of Representatives not later 

than 30 days following the submission of the 

annual budget submitted by the President: 

Provided, That such Capital Investment Plan 

shall include capital investment spending from 

all accounts within the Department of the 

Treasury, including but not limited to the 

Department-wide Systems and Capital 

Investment Programs account, Treasury 

Franchise Fund account, and the Treasury 

Forfeiture Fund account: Provided further, 

That such Capital Investment Plan shall 

include expenditures occurring in previous 

fiscal years for each capital investment project 

that has not been fully completed.

SEC. 124. (a) Not later than 60 days after the 

end of each quarter, the Office of Financial 

Stability and the Office of Financial Research 

shall submit reports on their activities to the 

Committees on Appropriations of the House 

of Representatives and the Senate, the 

Committee on Financial Services of the House 

of Representatives and the Senate Committee 

on Banking, Housing, and Urban Affairs. (b) 

The reports required under subsection (a) shall 

include—(1) the obligations made during the 

previous quarter by object class, office, and 

activity; (2) the estimated obligations for the 

remainder of the fiscal year by object class, 

office, and activity; (3) the number of fulltime equivalents within each office during the 

Department of the Treasury - Budget in Brief 117
previous quarter; (4) the estimated number of 

full-time equivalents within each office for the 

remainder of the fiscal year; and (5) actions 

taken to achieve the goals, objectives, and 

performance measures of each office. (c) At 

the request of any such Committees specified 

in subsection (a), the Office of Financial 

Stability and the Office of Financial Research 

shall make officials available to testify on the 

contents of the reports required under 

subsection (a). 

SEC. 125. Within 45 days after the date of 

enactment of this Act, the Secretary of the 

Treasury shall submit an itemized report to the 

Committees on Appropriations of the House 

of Representatives and the Senate on the 

amount of total funds charged to each office 

by the Franchise Fund including the amount 

charged for each service provided by the 

Franchise Fund to each office, a detailed 

description of the services, a detailed 

explanation of how each charge for each 

service is calculated, and a description of the 

role customers have in governing in the 

Franchise Fund. 

[SEC. 126. The Secretary of the Treasury, in 

consultation with the appropriate agencies, 

departments, bureaus, and commissions that 

have expertise in terrorism and complex 

financial instruments, shall provide a report to 

the Committees on Appropriations of the 

House of Representatives and Senate, the 

Committee on Financial Services of the House 

of Representatives, and the Committee on 

Banking, Housing, and Urban Affairs of the 

Senate not later than 90 days after the date of

enactment of this Act on economic warfare 

and financial terrorism.] 

[SEC. 127. During fiscal year 2016— 

(1) none of the funds made available in this or 

any other Act may be used by the Department 

of the Treasury, including the Internal 

Revenue Service, to issue, revise, or finalize 

any regulation, revenue ruling, or other 

guidance not limited to a particular taxpayer 

relating to the standard which is used to 

determine whether an organization is operated 

exclusively for the promotion of social

welfare for purposes of section 501(c)(4) of 

the Internal Revenue Code of 1986 (including 

the proposed regulations published at 78 Fed. 

Reg. 71535 (November 29, 2013)); and (2) 

the standard and definitions as in effect on 

January 1, 2010, which are used to make such 

determinations shall apply after the date of the 

enactment of this Act for purposes of 

determining status under section 501(c)(4) of 

such Code of organizations created on, before, 

or after such date.] 

SEC. 126. Of the funds made available by this 

Act to the Internal Revenue Service and 

Alcohol Tobacco Tax and Trade Bureau, not 

less than $8,854,065,000 shall be specified to 

pay for the costs of activities, including tax 

compliance to address the Federal tax gap, as 

specified for purposes of section 251(b)(2) of 

the Balanced Budget and Emergency Deficit 

Control Act of 1985, as amended.

SEC. 127. AMENDMENTS TO COMMUNITY 

DEVELOPMENT FINANCIAL

INSTITUTIONS BOND PROGRAM. Section 

114A of the Riegle Community Development 

and Regulatory Improvement Act of 1994 (12 

U.S.C. 4713a) is amended—(a) in subsection 

(c)(2) by striking ", multiplied by an amount 

equal to the outstanding principal balance of 

issued notes or bonds"; (b) by amending 

subsection (d) to read as follows—"(d) RISKSHARE POOL.—Each qualified issuer shall, 

during the term of a guarantee provided under 

the Program, establish a risk-share pool, 

capitalized by contributions from eligible 

community development financial institution 

participants in amounts that shall not exceed 4 

percent of the guaranteed amount outstanding 

on the subject notes and bonds, which 

contribution amounts shall be determined by 

the Secretary for each eligible community 

development financial institution participant 

based on the Secretary's assessment of the 

participant's credit quality."; (c) in subsection 

(e)(2)(B), by striking "$100,000,000" and 

Department of the Treasury - Budget in Brief 118
inserting "$25,000,000"; (d) in subsection (g) 

by amending the subsection to read as 

follows: "(g) FEES.—"(1) IN GENERAL.—

"(A) QUALIFIED ISSUER.—A qualified 

issuer that receives a guarantee issued under 

this section on a bond or note shall pay a fee 

to the Secretary, in an amount equal to 10 

basis points of the amount of the unpaid 

principal of the bond or note guaranteed. "(B) 

ELIGIBLE CDFI PARTICIPANT.—An 

eligible community development financial 

institution participant that receives a bond 

loan under this section shall pay a fee to the 

Secretary, in an amount equal to 1 percent of 

the unpaid principal of the bond or note 

guaranteed. "(2) PAYMENT.—"(A) 

QUALIFIED ISSUER.—A qualified issuer 

shall pay the fee required under paragraph 

(1)(A) on an annual basis. "(B) ELIGIBLE 

CDFI PARTICIPANT.—An eligible 

community development financial institution 

participant shall pay the fee required under 

paragraph (1)(B) at the time of loan 

disbursements to the participant. "(3) USE OF 

FEES.—Fees collected by the Secretary—"(A) 

under paragraph (1)(A) shall be used to 

reimburse the Department of the Treasury for 

any administrative costs incurred by the 

Department in implementing the Program 

established under this section and shall be 

available until expended; and "(B) under 

paragraph (1)(B) shall be deposited by the 

Secretary into an account that shall be 

available to the Secretary to cover credit 

subsidy costs and to pay principal and interest 

on the guaranteed bonds or notes in the event 

of a delinquency in repayment of loans to 

eligible community development financial 

institution participants."; and (e) in 

subsection (k), by striking "This section is 

repealed, and the" and inserting "The", by 

striking the comma after "terminate", and by 

striking "2014" and inserting "2017". 

SEC. 128. Paragraph 5112(r)(5) of title 31, 

United States Code, is amended by inserting 

"for circulation" after both instances of 

"minted and issued". 

SEC. 129. Paragraph 3111(c)(2) of title 5, 

United States Code, is amended by inserting 

"or the Office of Tax Policy," after "the 

Internal Revenue Service,". 

Explanation for proposed section 129: 

Treasury requests that like students hired by 

IRS, students hired by the Office of Tax 

Policy be treated as employees for purposes of 

section 6103. Officers and employees of the 

Department of Treasury are authorized to 

access return information if required by their 

official duties for tax administration. The 

provision would not change current law 

treating IRS student interns as employees for 

purposes of section 6103.

Department of the Treasury - Budget in Brief 119
Department of the Treasury - Budget in Brief 120
Mandatory Funding Levels for the FY 2017 President’s Budget—Treasury Chapter

(Dollars in Millions, includes Legislative Proposals)

Appropriations (Dollars in Millions) FY 2015 FY 2016

Actual Estimated Estimated $ Change % Change

Restoration of Lost Interest, Medicare Trust Funds $251 $0 $0 $0 0.0%

Payment to the Resolution Funding Corporation 2,628 2,628 2,628 0 0.0%

Interest on Uninvested Funds 30 30 30 0 0.0%

Restitution of Forgone Interest 0 1,717 0 (1,717) -100.0%

Federal Interest Liabilities to States 1 2 2 0 0.0%

Interest Paid to Credit Financing Accounts 8,115 14,855 16,260 1,405 9.5%

Refunding Internal Revenue Collections, Interest 1,061 1,309 1,680 371 28.3%

Interest on Public Debt 402,184 447,293 511,659 64,366 14.4%

Other Interest (41,789) (62,702) (68,146) (5,444) 8.7%

INTEREST PAYMENTS $372,481 $405,132 $464,113 $58,981 14.6%

MANDATORY ACCOUNTS

Allotment for Puerto Rico EITC Payments 0 0 6,642 6,642 0.0%

America Fast Forward Bonds 0 0 288 288 0.0%

Build America Bond Payments, Recovery Act 3,499 3,518 3,775 257 7.3%

Capital Magnet Fund, Community Development Financial Institutions 0 91 80 (11) -12.1%

Check Forgery Insurance Fund 14 16 16 0 0.0%

Cheyenne River Sioux Tribe Terrestrial Wildlife Habitat Restoration Trust Fund 1 1 1 0 0.0%

Claims, Judgments, and Relief Acts 2,436 1,330 928 (402) -30.2%

Community Development Financial Institutions Fund Program Account 2 5 0 (5) -100.0%

Comptroller of the Currency 1,593 1,081 1,134 53 4.9%

Continued Dumping and Subsidy Offset 105 57 49 (8) -14.0%

Enforcement, IRS 8 0 0 0 0.0%

Exchange Stabilization Fund 39 50 73 23 46.0%

Federal Financing Bank 2,591 2,294 2,164 (130) -5.7%

Federal Reserve Bank Reimbursement Fund 469 524 529 5 1.0%

Federal Tax Lien Revolving Fund 0 1 1 0 0.0%

Financial Agent Services 627 713 676 (37) -5.2%

Financial Innovation for Working Families Fund 0 0 100 100 0.0%

Financial Research Fund 94 113 131 18 15.9%

Financing America's Infrastructure Renewal (FAIR) Program 0 0 2 2 0.0%

Fiscal Service 151 139 166 27 19.4%

Grants for Specified Energy Property in Lieu of Tax Credits, Recovery Act 1,959 1,118 650 (468) -41.9%

GSE Mortgage-Backed Securities Purchase Program Account 178 3 3 0 0.0%

Gulf Coast Restoration Trust Fund 175 132 178 46 34.8%

Hope Reserve Fund 0 87 70 (17) -19.5%

Informant Payments 71 63 63 0 0.0%

Internal Revenue Collections for Puerto Rico 343 403 372 (31) -7.7%

IRS Miscellaneous Retained Fees 391 411 404 (7) -1.7%

Office of Financial Stability 182 148 127 (21) -14.2%

Pay for Success 0 0 300 300 0.0%

Payment in Lieu of Tax Credits for Promise Zones 0 0 27 27 0.0%

Payment of Government Losses in Shipment 1 1 1 0 0.0%

Payment to Issuer of New Clean Renewable Energy Bonds 29 29 31 2 6.9%

Payment to Issuer of Qualified Energy Conservation Bonds 34 34 37 3 8.8%

Payment to Issuer of Qualified School Construction Bonds 643 646 693 47 7.3%

Payment to Issuer of Qualified Zone Academy Bonds 52 52 56 4 7.7%

Payment Where Adoption Credit Exceeds Liability for Tax 16 1 0 (1) -100.0%

Payment Where Alternative Minimum Tax Credit Exceeds Liability for Tax 7 5 1 (4) -80.0%

Payment Where American Opportunity Credit Exceeds Liability for Tax 4,153 4,398 4,308 (90) -2.0%

Payment Where Certain Tax Credits Exceed Liability for Corporate Tax 152 198 3,388 3,190 1611.1%

Payment Where Child Tax Credit Exceeds Liability for Tax 20,592 21,627 21,579 (48) -0.2%

Payment Where Earned Income Credit Exceeds Liability for Tax 60,084 61,381 62,211 830 1.4%

Payment Where Health Coverage Tax Credit Exceeds Liability for Tax 0 6 21 15 250.0%

Payment Where Small Business Health Insurance Tax Credit Exceeds Liability for Tax 38 59 80 21 35.6%

Payment Where Specified Energy Property Credit Exceeds Liability for Tax 0 0 58 58 0.0%

Presidential Election Campaign Fund 30 49 53 4 8.2%

Provide a Carbon Dioxide Investment and Sequestration Credit 0 0 0 0 0.0%

Refundable Premium Tax Credit and Cost Sharing Reductions 30,058 39,285 57,700 18,415 46.9%

Reimbursements to Federal Reserve Banks 122 137 138 1 0.7%

Small Business Lending Fund Program Account 31 14 13 (1) -7.1%

State Small Business Credit Initiative 1 0 1,500 1,500 0.0%

Terrorism Insurance Program 2 88 233 145 164.8%

Travel Promotion Fund 93 93 100 7 7.5%

Treasury Forfeiture Fund 4,252 (2,982) 1,387 4,369 -146.5%

Troubled Asset Relief Program Account 0 548 0 (548) -100.0%

Troubled Asset Relief Program Equity Purchase Program 3 100 0 (100) -100.0%

Troubled Asset Relief Program, Housing Programs 40 0 0 0 0.0%

Yankton Sioux Tribe Development Trust Fund 2 0 0 0 0.0%

Subtotal, MANDATORY ACCOUNTS $135,363 $138,067 $172,537 $34,470 25.0%

Offsets:

Treasury Mandatory Offsetting Receipts (26,857) (21,825) (23,935) (2,110) 9.7%

TOTAL, DEPARTMENT OF THE TREASURY $480,987 $521,374 $612,715 $91,341 17.5%

FY 2017

Department of the Treasury - Budget in Brief 121
Total Treasury Department Mandatory Budget

The Treasury Department Mandatory Budget 

includes $613 billion dollars in interest 

payments, mandatory accounts, and offsetting 

collections (offsets). These accounts and the 

estimated budget authority are summarized 

above. Account totals include the effects of 

FY 2017 policy proposals. For more detailed 

descriptions of each account, please see the 

Department of the Treasury chapter in the 

FY 2017 Appendix, Budget of the U.S. 

Government at: 

http://www.whitehouse.gov/omb/budget. 

 

Interest Payments - $464 billion

These are permanent, indefinite funds for 

interest payments. This includes Interest on 

the Public Debt, which consists of all interest 

paid on Treasury securities and sold to the 

public and to Federal Government trust Funds, 

revolving funds and deposit funds. Treasury 

interest payment accounts also consist of

Refunds on Internal Revenue Collections

interest, Interest on Uninvested Funds, Interest 

paid to Credit Financing Accounts, Federal 

Interest Liabilities to the States, and Payments 

to the Resolution Funding Corporation.

Mandatory Accounts - $173 billion

These are accounts for which the Congress has 

given the Department of Treasury permanent 

authority to expend funds as appropriations. 

These include permanent authority 

appropriations that fund a number of programs 

under Treasury jurisdiction such as the 

Terrorism Risk Insurance Program; the Small 

Business Lending Fund and the State Small 

Business Credit Initiative. This also includes 

programs run out of the Office of Financial 

Stability, including the Troubled Asset Relief 

Program (TARP). Other accounts that fall 

under mandatory programs include all Internal 

Revenue Service refundable tax credit 

accounts, certain user fees, and informant 

payments, as well as Grants for Specified 

Energy Property. The Department is also a 

custodian for a number of government 

accounts and funds listed in this section and 

further detailed in the FY 2017 Appendix, 

Budget of the U.S. Government. 

Offsetting Collections Payments - $24 

billion

Offsets collections include payments to the 

Government that, by law, are credited directly 

to expenditure accounts and deducted from 

gross budget authority and outlays of the 

expenditure account. 

Treasury’s Offsetting Collections accounts 

include the non-budgetary accounts that

record all cash flows to and from the 

Government resulting from direct loans 

obligated in 2008 and beyond (including 

modifications of direct loans that resulted 

from obligations in any year). 

Department of the Treasury - Budget in Brief 122