Message from the Secretary of the Treasury 

Dear Member: 

In the Fiscal Year (FY) 2018 Budget Blueprint, the President challenged every agency to realize 

greater efficiencies and savings in order to contribute to the priorities promised to the American 

people. I am proud to submit a budget that achieves this goal. The FY 2018 President's Budget 

requests $11.2 billion for Treasury's operating bureaus and $1.5 billion for our International 

Programs. 

Consistent with the Administration's priorities, Treasury's request prioritizes national security 

and cyber security programs while requiring nearly every other program to find savings through 

efficiencies. The Budget funds core tax administration functions at the Internal Revenue Service 

(IRS), and promotes modernizing and securing legacy systems and platforms for interacting with 

taxpayers. IRS will utilize technology, training, and internal efficiencies to achieve a two 

percent reduction. The Budget also eliminates funding for Community Development Financial 

Institutions (CDFI) Fund grants, a savings of $210 million from the FY 2017 continuing 

resolution level. The CDFI Fund was created more than 20 years ago to jump-start a now mature 

industry in which private institutions have ready access to the capital needed to extend credit and 

provide financial services to underserved communities. 

As directed in the Executive Order on Core Principles for Regulating the United States 

Financial System, I am conducting a thorough review of the extent to which existing laws, 

regulations, and other Government policies promote (or inhibit) the Administration's priorities 

for financial regulation. The President's Budget includes $35 billion in savings to be realized 

through reforms that protect taxpayers and reverse burdensome regulations that hinder financial 

innovation and reduce access to credit for hardworking American families. Treasury is also 

reviewing its programs as directed by the Executive Order on a Comprehensive Plan for 

Reorganizing the Executive Branch, which presents an additional opportunity to more effectively 

achieve our mission. 

The FY 2018 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, 

Steven T. Mnuchin 
Department of the Treasury – Budget in Brief 
U.S. Department of the Treasury 

FY 2018 Budget in Brief 

Summary of FY 2018 President’s Budget 

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

Summary Tables and Charts 

FY 2018 President’s Budget by Function............................................................................................... 1 

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing ............................................................ 3 

Summary of FY 2018 Increases and Decreases ................................................................................... 4 

Appropriated Accounts – Bureau Program Detail 

Departmental Offices Salaries and Expenses ............................................................................................... 5 

Cybersecurity Enhancement Account ............................................................................................................ 9 

Department-wide Systems and Capital Investment Program....................................................................... 13 

Terrorism and Financial Intelligence ............................................................................................................ 15 

Office of Inspector General .......................................................................................................................... 17 

Special Inspector General for TARP ............................................................................................................ 21 

Treasury Inspector General for Tax Administration ..................................................................................... 27 

Community Development Financial Institutions Fund .................................................................................. 33 

Financial Crimes Enforcement Network ....................................................................................................... 35 

Alcohol and Tobacco Tax and Trade Bureau .............................................................................................. 39 

Fiscal Service .............................................................................................................................................. 43 

Internal Revenue Service ............................................................................................................................ 49 

Non-Appropriated Accounts – Bureau Program Detail 

Office of Financial Stability .......................................................................................................................... 57 

Office of Financial Research... .................................................................................................................... 61 

Financial Stability Oversight Council... ........................................................................................................ 63 

Treasury Asset Forfeiture Fund ................................................................................................................... 65 

Bureau of Engraving and Printing ................................................................................................................ 67 

United States Mint ....................................................................................................................................... 71 

Office of Comptroller of the Currency .......................................................................................................... 75 

Treasury International Programs 

International Programs ................................................................................................................................ 81 

Supplemental Information 

Summary of FY 2018 Appropriations Language .......................................................................................... 85 

Mandatory Funding Levels for the FY 2018 President’s Budget – Treasury Chapter .................................. 93 

Treasury Department Mandatory Funding ................................................................................................... 94 

FY 2017 Enacted Funding Levels ................................................................................................................ 95 

The information presented in the FY 2018 Budget in Brief is accurate and complete as of 

May 23, 2017. Any updates will be reflected in the budget available on the Department of the Treasury 

website, www.Treasury.gov. 
Department of the Treasury – Budget in Brief 
Department of the Treasury – Budget in Brief 

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 2018 President’s Budget by Function 

Dollars in Thousands 

1
Department of the Treasury – Budget in Brief 

Funding Highlights 

The President’s Fiscal Year 2018 Budget provides $11.2 billion in discretionary funding (a 4 

percent reduction from FY 2017 annualized continuing resolution (CR) levels) for Treasury’s 

operating accounts and $1.5 billion for Treasury’s international assistance programs. This includes: 

 Investing in core administration functions at IRS, modernizing legacy systems and platforms for 

interacting with taxpayers. IRS will utilize technology, training, and internal efficiencies to 

achieve a modest $239 million (two percent) reduction, in support of the President’s 

commitment to deficit reduction. 

 Eliminating funding for Community Development Financial Institutions (CDFI) Fund grants, a 

savings of $210 million from the 2017 annualized CR level. 

 Prioritizing investments in cybersecurity through a Department-wide plan to strategically 

enhance existing security systems and preempt fragmentation of information technology 

management across the bureaus and financial sector.

 Maintaining funding for Treasury’s array of economic enforcement tools and key programs that 

freeze the accounts of terrorists and proliferators, implement sanctions on rogue nations, and 

link law enforcement agencies with financial institutions are critical to the continued safety and 

financial stability of the Nation. 

 Preserving top donor status with international financial institutions while reducing Treasury 

International Programs funding by $803 million, a 35 percent reduction from the FY 2017 

annualized CR level. 

 Targeted savings in nearly every Treasury program. 

Key Initiatives and Reforms 

 On February 3, 2017, the Administration issued the Executive Order on Core Principles for 

Regulating the United States Financial System. The Secretary of the Treasury, with the heads of 

the member agencies of the Financial Stability Oversight Council, is conducting a thorough 

review of the extent to which existing laws, regulations, and other Government policies promote 

(or inhibit) these Core Principles. The President’s Budget includes $35 billion in savings to be 

realized through reforms that prevent bailouts and reverse burdensome regulations that hinder 

financial innovation and reduce access to credit for hardworking American families. 

 Treasury is developing a plan for responding to the Executive Order on a Comprehensive Plan 

for Reorganizing the Executive Branch which will: 

o identify activities and functions that should be eliminated or consolidated because they 

are not core to our mission, are redundant, or are ineffective; 

o guide Treasury’s efforts to reshape its workforce; 

o determine processes and organizational structures that can be streamlined for greater 

efficiencies; and 

o align reform proposals with the priorities, including goals and objectives, under 

development for the FY 2018-2022 Strategic Plan and the FY 2018 and 2019 budgets. 

 The Budget requests statutory authority for BEP to begin construction of a new currency 

production facility in the vicinity of Washington, D.C.

The Budget includes reauthorization and reforms to the CDFI Bond Guarantee Program to 

encourage provision of community development capital without requiring taxpayer subsidies.

2
Department of the Treasury – Budget in Brief 

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 814 189 1,003 891 107 998 811 107 918

Terrorism and Financial Intelligence 383 31 414 391 31 422 386 31 417Cybersecurity Enhancement 0 0 0 0 0 0 19 0 19

Office of Inspector General 164 6 170 194 19 213 175 5 180

Treasury Inspector General for Tax Administration 787 2 789 859 2 861 819 2 821

Special Inspector General for TARP 137 0 137 192 0 192 100 0 100

Community Development Financial Institutions Fund 77 0 77 77 0 77 42 0 42

Financial Crimes Enforcement Network 278 1 279 338 1 339 332 1 333

Alcohol and Tobacco Tax and Trade Bureau 470 10 480 494 10 504 456 10 466

Bureau of the Fiscal Service 1,626 417 2,043 1,693 427 2,120 1,680 427 2,107

Internal Revenue Service 77,925 640 78,565 77,008 684 77,692 71,199 711 71,910

Subtotal, Treasury Appropriated Level 82,661 1,296 83,957 82,137 1,281 83,418 76,019 1,294 77,313Office of Financial Stability (Administrative Account) 67 0 67 53 0 53 43 0 43

Small Business Lending Fund Program 11 0 11 7 0 7 8 0 8

State Small Business Credit Initiative 10 10 9 9 0

Capital Magnet Fund 7 7 6 6

Office of Financial Research 208 0 208 223 0 223 139 0 139

Financial Stability Oversight Council 22 22 23 23 21 21

Treasury Franchise Fund 0 1,715 1,715 0 1,794 1,794 0 1,848 1,848

Bureau of Engraving and Printing 1,818 0 1,818 1,842 0 1,842 1,842 0 1,842

United States Mint 1,692 0 1,692 1,801 0 1,801 1,801 0 1,801

Office of the Comptroller of the Currency 0 3,845 3,845 0 3,938 3,938 0 4,041 4,041

Terrorism Insurance Program 3 0 3 10 0 10 10 0 10IRS Private Collection Agent Program 5 5 17 17 84 84

Subtotal, Treasury Non-Appropriated Level 3,836 5,560 9,396 3,992 5,732 9,724 3,954 5,889 9,843Total, Treasury 86,497 6,856 93,353 86,129 7,013 93,142 79,973 7,183 87,1561/ A portion of Fiscal Service's Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt Collection Improvement Act (DCIA) of 1996.2/ IRS FY 2018 Total FTE is overstated in the President's Budget Appendix by 102 FTE as a result of a reporting error in the Business Systems Modernization account. 

2016 Actual 2017 Annualized CR Rate 2018 President's Budget

3
Department of the Treasury – Budget in Brief 

DO TFI Cyber DSCIP OIG TIGTA SIGTAR

P CDFI FinCEN T T B FS IRS Subtotal T EOAF T otal

FY 2017 Annualized CR Rate $222,077 $116,778 $0 $4,990 $35,349 $166,957 $40,594 $233,079 $112,764 $106,237 $363,158 $11,213,642 $12,615,625 ($876,000) $11,739,625 

(MCLs)Maintaining Current Levels $4,284 $2,315 - - $729 $3,335 $809 - $2,276 $2,102 $6,971 $220,035 $242,856 - $242,856 

Non-Recurring Costs - - - ($4,990) - - - - - - ($14,890) - ($19,880) - ($19,880)Efficiency Savings - ($2,315) - - - - - - ($1,206) ($570) ($1,935) - ($6,026) - ($6,026)

Adjustments to Base $4,284 $0 $0 ($4,990) $729 $3,335 $809 $0 $1,070 $1,532 ($9,854) $220,035 $216,950 $0 $216,950 FY 2018 Base $226,361 $116,778 $0 $0 $36,078 $170,292 $41,403 $233,079 $113,834 $107,769 $353,304 $11,433,677 $12,832,575 ($876,000) $11,956,575 

Program Decreases ($24,610) - - - ($1,966) ($9,179) ($21,106) ($219,079) ($1,070) ($9,111) ($22,467) ($638,126) ($946,714) - ($946,714)Program Increases - - $27,264 $4,426 - - - - - - - $179,449 $211,139 - $211,139

Subtotal, Program Changes ($24,610) $0 $27,264 $4,426 ($1,966) ($9,179) ($21,106) ($219,079) ($1,070) ($9,111) ($22,467) ($458,677) ($735,575) $0 ($735,575)FY 2018 President's Budget $201,751 $116,778 $27,264 $4,426 $34,112 $161,113 $20,297 $14,000 $112,764 $98,658 $330,837 $10,975,000 $12,097,000 ($876,000) $11,221,000 

(Dollars in Thousands)

Summary of FY 2018 Increases and Decreases

4
Departmental Offices Salaries and Expenses

Program Summary by Budget Activity

Summary

By streamlining its workforce and finding 

more efficient ways to manage its programs, 

Departmental Offices (DO) will achieve 

savings of $20,326,000 in FY 2018. This 

budget request supports the Presidential 

Executive Order on a comprehensive plan for 

reorganizing the Executive Branch to improve 

the efficiency, effectiveness, and 

accountability of federal agencies. Within the 

reduced funding level, DO will maintain its 

commitments to tax reform, cybersecurity, and 

critical infrastructure protection for both 

Treasury information technology systems and 

the U.S. financial sector, while promoting 

economic growth in the U.S., advancing U.S. 

economic and financial policy priorities 

around the world, enhancing U.S. 

competitiveness and job creation, and 

promoting international financial stability. DO 

also expects to maintain effective managerial 

and administrative support to DO offices and 

the Department of the Treasury.

FY 2018 Budget Highlights

Dollars in Thousands

FY 2016 FY 2017 FY 2018

Budget Activity Enacted Annualized CR Request $ Change % Change

Executive Direction $37,943 $38,102 $34,578 ($3,524) -9.25%

Domestic Finance and Tax Policy $84,591 $81,215 $73,804 ($7,411) -9.13%

International Affairs and Economic Policy $58,520 $57,951 $52,875 ($5,076) -8.76%

Treasury-w ide Management and Program $41,446 $44,809 $40,494 ($4,315) -9.63%

Subtotal $222,500 $222,077 $201,751 ($20,326) -9.15%

Offsetting Collections - Reimbursables $102,882 $102,882 $102,882 $0 0.00%

Total Program Operating Level $325,382 $324,959 $304,633 ($20,326) -6.25%

Direct FTE 814 891 811 (80) -8.98%

Reimbursable FTE 189 107 107 0 0.00%

Total FTE 1,003 998 918 (80) -8.02%

FY 2017 TO FY 2018

DO Salaries and Expenses FTE Amount

FY 2017 Annualized CR 891 $222,077

Changes to Base:

Maintaining Current Levels (MCLs): 0 $4,284

Pay-Raise 0 $2,129

Pay Annualization 0 $780

Non-Pay 0 $1,375

Subtotal Changes to Base 0 4,284

Total FY 2018 Base 891 $226,361

Program Changes:

Program Decreases (80) ($24,610)

Streamline Staffing (80) ($14,697)

Reduce Contracts, Supplies, and 

Equipment 0 ($9,913)

Subtotal Program Changes (80) (24,610)

Total FY 2018 Request 811 201,751

Dollars in Thousands

5
FY 2018 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$2,129 / +0 FTE

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$780 / +0 FTE

Funds are requested for annualization of the 

January 2017 pay-raise.

Non-Pay +$1,375,000 / +0 FTE

Funds are requested for non-labor expenses 

such as travel, contracts, rent, supplies, and 

equipment. 

Program Decreases -$24,610,000 / -80 FTE

Streamline Staffing -$14,697,000 / -80 FTE

To align with the Administration’s initiative to 

improve government efficiency and 

effectiveness, DO is implementing a staffing 

streamlining effort to ensure appropriate levels 

for meeting Treasury’s mission and objectives, 

and to maximize effectiveness and efficiency. 

Reduce Contracts, Supplies, and 

Equipment -$9,913,000 / +0 FTE

Departmental Offices will achieve savings 

through reductions to non-labor activities, such 

as service contracts, equipment, and supplies. 

These include potential reductions in advisory 

services, electronic data and periodical 

subscriptions, warehouse footprint, janitorial 

and landscaping services, FOIA assistance, 

internal controls support and contractual 

support to the American Recovery and 

Reinvestment Act.

Explanation of Budget Activities

Executive Direction ($34,578,000 from 

direct appropriation, $29,632,000 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 

($52,875,000 from direct appropriation, 

$14,680,000 from reimbursable resources)

Promotes economic growth in the U.S. by 

producing technical economic analyses for the 

Secretary and advancing U.S. economic and 

financial policy priorities around the world.

Domestic Finance and Tax Policy 

($73,804,000 from direct appropriation, 

$55,231,000 from reimbursable resources) 

Monitors and provides economic and financial 

policy expertise to the Secretary in the areas of 

domestic finance and tax policy, including 

financial markets and the regulation of financial 

institutions. 

 

Treasury-wide Management and Programs 

($40,494,000 from direct appropriation, 

$3,339,000 from reimbursable resources) 

Provides strategic plans and policy direction in 

management fields including, but not limited to:

human resources, information technology 

security, and financial administration, including

the formulation and management of the budget. 

Legislative Proposals

Treasury has no legislative proposals for DO 

Salaries and Expenses.

6
Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Domestic 

Finance and Tax 

Policy

Variance Between Estimated 

and Actual Receipts (Annual 

Forecast)(%)

3.25 2.8 3.1 4.25 4.25

International 

Affairs

IA - Timely Review of CFIUS 

Cases 100.0 100.0 100.0 100.0 100.0

Treasury-wide 

Management and 

Programs

Treasury-wide Leaders Lead 

Index of the Federal Employee 

Viewpoint Survey (FEVS)

53.0 54.0 55.0 55.0 56.0

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 federal government’s central 

operating account and cash position, the Office 

of Fiscal Projections (OFP) in the Office of 

Domestic Finance forecasts net cash flows 

(e.g., federal receipts, outlays, and other 

miscellaneous 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. A lower variance is 

better.

The actual variance for FY 2016 was 

3.1 percent, which is significantly lower than 

the 4.25 percent target for FY 2016. The 

target for both FY 2017 and FY 2018 is 

4.25 percent.

Timely Review of CFIUS Cases: This 

measure tracks compliance with statutory 

deadlines for completing national security 

reviews of transactions notified to the 

Committee on Foreign Investment in the 

United States (CFIUS) to ensure that the 

CFIUS process is timely and efficient. The 

target (100 percent) was met in FY 2016. The 

Office of International Affairs’ target for this 

measure in FY 2017 and FY 2018 is 100 

percent. 

Treasury-wide “Leaders Lead” Index of 

Federal Employee Viewpoint Survey (FEVS): 

Treasury set the goal to increase the “Leaders 

Lead” index above FY 2015 results. 

Treasury’s score for the Leaders Lead Index 

increased from 54 percent in FY 2015 to 

55 percent in FY 2016, and Treasury’s score 

led the government-wide average by two 

percentage points.

7
Department of the Treasury – Budget in Brief 

8
Cybersecurity Enhancement Account

Program Summary by Budget Activity

Summary

Trillions of dollars are accounted for and 

processed by the Department of the Treasury's 

information technology (IT) systems and 

therefore, they are a constant target for 

sophisticated threat actors. To more 

proactively and strategically protect Treasury 

systems against cybersecurity threats, the 

Budget requests $27.264 million for the 

Cybersecurity Enhancement Account (CEA). 

The account identifies and supports 

Department-wide investments for critical IT 

improvements including the systems identified 

as High Value Assets (HVAs). Furthermore, 

the centralization of funds allows Treasury to 

more nimbly respond in the event of a 

cybersecurity incident as well as leverage 

enterprise-wide services and capabilities 

across the components of the Department.

By managing CEA centrally, Treasury elevates 

the importance of such initiatives and provides 

Treasury leadership, OMB, and Congress with 

better transparency into cyber activities across 

the Department. Enhanced transparency also 

improves Department-wide coordination of 

cybersecurity efforts and improves the 

Department’s response and recovery 

capabilities. With high-level support, the 

program provides a platform to enhance 

efficiency, communication, transparency, and 

accountability around the mission. 

The CEA strengthens cybersecurity at 

Treasury and the nation’s financial sector. 

This request is in addition to current bureaulevel cybersecurity activities which remain in 

the base budgets of each Treasury bureau. As 

the CEA matures, Treasury will continue to 

look for targeted opportunities to provide 

shared and cost-effective enterprise solutions 

to improve cybersecurity defenses of Treasury 

and the U.S. financial sector. 

FY 2018 Budget Highlights

Dollars in Thousands

FY 2016 FY 2017 FY 2018

Budget Activity Enacted Annualized CR Request $ Change % Change

Cybersecurity Enhancement Account $0 $0 $27,264 $27,264 NA

Total Program Operating Level $0 $0 $0 $0 NA

Direct FTE 0 0 19 19 NA

Total FTE 0 0 19 19 NA

FY 2017 TO FY 2018

Cybersecurity Enhancement 

Account FTE Amount

FY 2017 Annualized CR 0 $0

Program Increases: 19 $27,264

Malw are Content Filter 0 $2,474

Data Loss Protection at the Fiscal 

Service Trusted Internet 

Connections (TIC) 0 $2,135

Enhanced Incident Response and 

Recovery Capabilities 4 $5,046

Cybersecurity Enhancements for 

Classified Netw orks 3 $1,050

Encrypted Traffic Inspection at the 

Fiscal Service Trusted Internet 

Connections (TIC) 0 $805

Enhancements to the Treasury 

Secure Data Netw ork 0 $5,000

Proactive Cyber Risk and Threat 

Identification 3 $1,948

Improving the Cybersecurity of High 

Value Assets (HVA) 1 $3,537

Enhancements to Cybersecurity 

Infrastructure 0 $3,618

Mitigation of Cyber Threats to United 

States Financial Services Sector 8 $1,651

Total FY 2018 Request 19 $27,264

Dollars in Thousands

9
FY 2018 Budget Adjustments

Adjustments to Request

Malware Content Filter +$2,474,000 / 

+0 FTE

Treasury will fund web and email traffic 

inspection in virtual environments at the 

Treasury Enterprise Trusted Internet 

Connections. This allows dynamic analysis of 

potentially harmful email and web traffic in a 

controlled environment, enabling the Treasury 

enterprise security operations center to identify 

and remove malicious attachments and links 

before they reach the Treasury network. This 

will reduce the risk of compromise for the 

entire Treasury network, as well as systems 

housed on that network, including High Value 

Assets. 

Data Loss Protection at the Fiscal Service 

Trusted Internet Connections (TIC) 

+$2,135,000 / +0 FTE

Funds will expand and accelerate 

implementation of Data Loss Protection at 

Treasury’s Enterprise TICs and at select High 

Value Assets, enabling Treasury to detect the 

exfiltration of sensitive information by either 

threat actors or malicious insiders. This will 

allow Treasury to directly counter the threat of 

data loss through episodic/coordinated 

exfiltration. This will enhance Treasury’s 

ability to detect, investigate, and respond to 

unauthorized attempts to access and remove 

sensitive taxpayer and financial data from the 

Treasury and bureau networks. 

Enhanced Incident Response and 

Recovery Capabilities +$5,046,000 / +4 FTE

This request funds enhancements to response 

and recovery capabilities at Treasury’s 

enterprise security operations center (SOC), 

the lead entity for Department-wide 

cybersecurity incident response and recovery 

actions, resulting in a faster response and 

recovery time. Traditionally this entails: 

retroactive examination of network traffic; 

assessment of adversarial movement within 

the network; determination of the level of 

information compromise; implementation of 

mitigations and countermeasures; and 

reconstitution/resurrection of damaged 

systems. This request also includes funding for 

deployment of an endpoint incident response 

capability, giving the enterprise SOC the 

ability to respond to incidents at the 

workstation level throughout the Department 

in a matter of minutes and hours rather than 

days and weeks. 

Cybersecurity Enhancements for 

Classified Networks +$1,050,000 / +3 FTE

This request supports enhanced monitoring for 

the Treasury-wide collateral classified 

network, including security controls testing, 

monitoring of system security to include 

detection of and response to unauthorized user 

or anomalous network activity, as well as the 

secure implementation of identity and 

credential access management that provides a 

more secure environment for processing 

highly sensitive information. Funding also 

improves Treasury’s ability to continuously 

monitor the network and detect and remediate 

security vulnerabilities, thereby reducing the 

risk of security incidents. 

Encrypted Traffic Inspection at the Fiscal 

Service Trusted Internet Connections (TIC) 

+$805,000 / +0 FTE 

Encryption is required to protect the 

confidentiality of sensitive network 

transactions. However, adversaries use 

encryption to conceal their command/control 

traffic and exfiltration activity. Treasury must 

be able to inspect encrypted network traffic for 

these threats. Enterprise TICs, housed at 

Fiscal Service, enhance Treasury’s ability to 

detect, investigate, and respond to 

unauthorized attempts to access and remove 

sensitive data from the enterprise-wide 

Treasury network. 

10
Enhancements to the Treasury Secure 

Data Network +$5,000,000 / +0 FTE

Funding will be allocated to the Treasury-wide 

SECRET collateral network to: increase 

overall stability; increase the timeliness of 

incident response and recovery; enhance 

security monitoring by the Government 

Security Operations Center; and provide 

advanced toolsets for automated monitoring, 

as well as analyst review of outputs from these 

toolsets. 

Proactive Cyber Risk and Threat 

Identification +$1,948,000 / +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 across 

Treasury have been engineered and developed 

securely from the outset. Additionally, this 

group will carry out penetration tests to 

uncover vulnerabilities in systems throughout 

Treasury, including High Value Assets, before 

they are discovered or exploited by 

adversaries.

Improving the Cybersecurity of High Value 

Assets (HVA) +$3,537,000 / + 1 FTE

HVAs are information systems that Treasury 

has systematically designated as missioncritical and are the most common targets for 

computer network attacks. Cybersecurity 

improvements include the implementation of 

encryption for data in-transit—including 

public-facing web traffic in accordance with 

OMB M-15-13— and data at-rest. For 

FY 2018, this request includes funding to 

increase the resiliency of Treasury’s HVA 

population through Risk and Vulnerability 

Assessments and Security Architecture 

Reviews. Funding will also be used to validate 

that, in the event of an intrusion, the affected 

HVAs have been properly cleaned and 

secured. 

Enhancements to Cybersecurity 

Infrastructure +$3,618,000 / +0 FTE

Treasury will implement user access controls 

for sensitive applications and High Value 

Assets, including greater use of multi-factor 

authentication through Personal Identity

Verification (PIV) cards. This funds operation 

and maintenance for those activities, and 

includes funding for improved security 

architecture design in conjunction with the 

Department of Homeland Security’s 

Continuous Diagnostics and Mitigation 

program, Phase II. This design will result in 

enhanced security for privileged users across 

the Department, as well as identify and reduce 

operational risks in Treasury’s access control 

architecture.

Mitigation of Cyber Threats to United 

States Financial Services Sector 

+$1,651,000 / +8 FTE 

Increasing cyber-attacks against financial 

institutions could lead to a loss in confidence 

in these institutions and to significant 

economic impacts. As the government agency 

charged with coordinating with the financial 

sector on cybersecurity issues, Treasury seeks 

to expand its role as the Sector Specific 

Agency for the financial services sector under 

Executive Order 13636 Improving Critical 

Infrastructure Cybersecurity. The goal is to 

improve the public-private sharing of 

cybersecurity information, promote the use of 

best practices, and respond to cybersecurity 

incidents. In contrast with other initiatives in 

this budget request that support cybersecurity 

enhancements to Treasury Information 

Technology systems, this initiative seeks to 

mitigate cybersecurity threats to the U.S. 

financial infrastructure. 

11
Explanation of Budget Activities

Cybersecurity Enhancement Account

($27,264,000 from direct appropriations) 

The purpose of CEA is to strategically 

mitigate cybersecurity risks through a 

centralized program with Department-wide 

impact. Due to the increasing number and 

sophistication of cyberattacks, Treasury 

leadership has prioritized cybersecurity and 

supports the centralization of department-wide 

cybersecurity initiatives through the CEA 

account and budget activity. Current bureaulevel cybersecurity spending remains in the 

base budgets of each bureau. 

With the exception of the project to mitigate 

cybersecurity threats to the U.S. financial 

infrastructure, all projects have the common 

purpose of strengthening the security of 

Treasury’s IT assets. Additionally, these 

projects will ensure compliance with both 

OMB and Executive Orders involving the 

security of government IT assets. To achieve 

these objectives, Treasury is deploying a 

multi-pronged approach of strategically 

procuring hardware and software, streamlining 

business processes while expanding security 

monitoring, and ensuring accountability at all 

levels. Treasury will work with OMB to select 

performance measures. 

Legislative Proposals

The Cybersecurity Enhancement Account has 

no legislative proposals. 

12
Department-wide Systems and Capital Investments Program

Program Summary by Budget Activity

Summary

Treasury owns and operates two historic office 

buildings in downtown Washington, D.C. – 

the Main Treasury Building and the 

Freedman’s Bank Building. Annually, the 

Department completes a condition assessment 

review of the infrastructure of these buildings. 

This year’s assessment highlights elements 

and infrastructure that has exceeded its 

expected life and has become too costly to 

continually repair. The Department plans to 

work through these accumulated needs over 

time. The FY 2018 request of $4.426 million 

begins this process by focusing on life safety 

renovations, improved electrical service, and 

roof replacement to address systemic and 

mechanical failure, and building 

modernization, while preserving the historic 

fabric of the buildings. 

FY 2018 Budget Highlights

FY 2018 Budget Adjustments

Adjustments to Request

Non-Recurring Costs -$4,990,000 / +0 FTE 

Zero-Based Budget -$4,990,000 / +0 FTE 

In the FY 2017 Annualized Continuing 

Resolution, $2,995,000 is provided for Digital 

Accountability and Transparency Act 

implementation, and $1,995,000 is provided for 

renovation of Treasury buildings.

Program Increases +$4,426,000 / +0 FTE

Add Smoke Evacuation to Freedman’s

Bank Building Stairwells +$350,000 / +0 

FTE

The Freedman’s Bank Building has two 

existing stairwells for emergency egress. 

Dollars in Thousands

Department-wide Systems and FY 2016 FY 2017 FY 2018

Capital Investments Program Enacted Annualized CR Request $ Change % Change

Appropriated Resources $5,000 $4,990 $4,426 ($564) -11.30%

Total, DSCIP $5,000 $4,990 $4,426 ($564) -11.30%

FY 2017 TO FY 2018

Department-wide Systems and Capital 

Investments Program (DSCIP) FTE Amount

FY 2017 Annualized CR 0 $4,990

Changes to Base:

Non-Recurring Costs 0 ($4,990)

Zero based budget 0 ($4,990)

Subtotal Changes to Base 0 ($4,990)

Total FY 2018 Base 0 $0

Program Changes:

Program Increases: 0 $4,426

Add smoke evacuation to stairwells in 

the Freedman's Bank Building 0 $350

Complete delivery of new electric 

service to tenant spaces in Freedman's 

Bank Building 0 $1,000

Phase I Main Treasury Roof 

Replacement 0 $3,076

Subtotal Program Changes 0 $4,426

Total FY 2018 Request 0 $4,426

Dollars in Thousands

13
Neither stairwell is properly pressurized in 

order to deter smoke infiltration in the case of 

a fire. 

Complete Delivery of New Electric Service 

to Freedman’s Bank Building +$1,000,000 / 

+0 FTE

A renovation project in 2013 provided new 

electrical feeders to the building and replaced 

the main switchgear. The project resulted in 

more efficient building service, however, 

further renovations are required to fully take 

advantage of this service within the secondary 

electrical distribution. The building also 

possesses some older aluminum branch wiring 

that needs to be replaced to meet current 

codes, and there is a unit that supplies 

uninterrupted power to the network which is 

approximately 15 years old and needs to be 

replaced. A new primary distribution system 

was installed in 2013, but older transformers 

and distribution panels from the older service 

still exist and will need to be removed as the 

secondary distribution systems are updated as 

part of floor-by-floor renovation. Finally, the 

typical lighting fixtures do not meet current 

federal energy standards and will need to be 

replaced with LED lighting. 

Phase 1 Main Treasury Roof Replacement 

+$3,076,000 / +0 FTE

The Main Treasury Building roof has reached 

its normal life expectancy and routine 

maintenance can no longer prevent leaks. 

New roofing options are being explored 

including removal and replacement of the 

existing roof. Preliminary research suggests 

that a newer technology may have advantages 

that outweigh the current roofing system. The 

new technology can be applied directly over 

the existing roofing system at a fraction of the 

cost and offer the same warranty period as 

conventional systems. In addition to lower 

costs and similar warranty periods, these 

systems also offer shorter installation periods, 

reduced odors, a UL fire rating, and 

manageable maintenance programs.

Explanation of Budget Activities

Department-wide Systems and Capital 

Investments Program ($4,426,000 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. 

14
Terrorism and Financial Intelligence

Program Summary by Budget Activity

Summary

The Office of Terrorism and Financial 

Intelligence (TFI) requests $116.778 million, 

which is level with the FY 2017 Annualized 

Continuing Resolution funding level. The 

budget prioritizes funding for Treasury’s array 

of targeted financial tools. Key Treasury 

programs that freeze the accounts of terrorists 

and proliferators, implement sanctions on 

rogue nations, and link law enforcement 

agencies with financial institutions are critical 

to the continued safety and financial stability 

of the Nation. 

FY 2018 Budget Highlights

FY 2018 Budget Adjustments

Adjustments to Request

Maintaining Current Levels (MCLs) 

2,315,000 / +0 FTE

Pay Raise +$851,000 / +0 FTE 

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$312,000 / +0 FTE 

Funds are requested for annualization of the

January 2017 pay-raise.

Non-Pay +$1,152,000 / +0 FTE 

Funds are requested for non-labor expenses 

such as travel, contracts, rent, supplies, and 

equipment. 

Efficiency Savings -$2,315,000 / -5 FTE

Streamline Staffing -$574,000 / 5 FTE

To align with the administration’s initiative to 

improve government efficiency and 

effectiveness, the Office of Terrorism and 

Financial Intelligence is implementing a 

staffing streamlining effort to ensure 

appropriate levels for maximum efficiency. 

Consolidations and Travel, Supplies, and 

Equipment Savings -$1,741,000/ +0 FTE

The office proposes to decrease foreign travel, 

reduce supplies and equipment purchases, 

consolidate FOIA contracts, and re-organize 

management functions. 

Dollars in Thousands

FY 2016 FY 2017 FY 2018

Budget Activity Enacted Annualized CR Request $ Change % Change

Terrorism and Financial Intelligence $117,000 $116,778 $116,778 $0 0.00%

Subtotal $117,000 $116,778 $116,778 $0 0%

Offsetting Collections - Reimbursables $6,329 $6,329 $6,329 $0 0.00%

Total Program Operating Level $6,329 $6,329 $6,329 $0 0.00%

Direct FTE 383 391 386 (5) -1.28%

Reimbursable FTE 31 31 31 0 0.00%

Total FTE 414 422 417 (5) -1.18%

FY 2017 TO FY 2018

Salaries and Expenses FTE Amount

FY 2017 Annualized CR 391 $116,778

Changes to Base:

Maintaining Current Levels (MCLs): 0 $2,315

Pay-Raise 0 $851

Pay Annualization 0 $312

Non-Pay 0 $1,152

Efficiency Savings (5) ($2,315)

Streamline Staffing (5) ($574)

Consolidations and Travel, Supplies, 

and Equipment Savings 0 ($1,741)

Subtotal Changes to Base (5) 0

Total FY 2018 Base 386 $116,778

Total FY 2018 Request 386 116,778

Dollars in Thousands

15
Explanation of Budget Activities

Terrorism and Financial Intelligence

($116,778,000 from direct appropriations, 

$6,329,000 from reimbursable resources) 

The Office of Terrorism and Financial 

Intelligence (TFI) marshals the Department's 

intelligence and enforcement functions with 

the twin aims of safeguarding the financial 

system against illicit use and combating rogue 

nations, terrorist facilitators, weapons of mass 

destruction proliferators, money launderers, 

drug kingpins, and other national security 

threats. Under Executive Order and legislation 

umbrellas, TFI supports Treasury’s strategic 

and priority goals by the implementation of 

specific sanctions tailored to block assets or 

impose trade restrictions.

Legislative Proposals

TFI has no legislative proposals. 

Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Terrorism and 

Financial 

Intelligence

Impact of TFI Programs and 

Activities 8.5 8.8 8.7 8.5 8.5

Description of Performance

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 production and 

dissemination of intelligence products, and 

implementing IT modernization projects. In 

FY 2016, TFI exceeded its performance goal 

of 8.5 with a score of 8.7 and expects to 

achieve its FY 2017 and FY 2018 target of 8.5.

TFI and Treasury will work with OMB on 

developing new performance measures that 

align to the new TFI Strategic Plan.

16
Department of the Treasury – Budget in Brief 

Office of Inspector General 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018 

Budget Activity Enacted Annualized CR Request $ Change % Change 

Audit $28,304 $27,219 $26,266 ($953) -3.50% 

Investigations $7,112 $8,130 $7,846 ($284) -3.49% 

Subtotal, OIG $35,416 $35,349 $34,112 ($1,237) -3.50% 

Offsetting Collections - Reimbursables $6,726 $10,500 $10,000 ($500) -4.76% 

Total Program Operating Level $42,142 $45,849 $44,112 ($1,737) -3.79% 

Direct FTE 164 194 175 (19) -9.79% 

Reimbursable FTE 6 19 5 (14) -73.68% 

Total FTE 170 213 180 (33) -15.49% 

Note: FY 2016 FTE and Other Resources are Actual

Summary 

The FY 2018 request for $34,112,000 for the 

OIG will be used to fund critical audit, 

investigative, and mission support activities to 

meet the requirements of the Inspector General 

Act of 1978, and other statutes including, but 

not limited: to the Cybersecurity Act of 2015; 

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, the 

Department’s actions in implementing cyber 

security information sharing, failed insured 

depositary institutions regulated by Treasury, 

and spending data submitted by the 

Department to USASpending.gov. With the 

resources available after mandated 

requirements are met, the 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) Efforts to Promote 

Spending Transparency and to Prevent and 

Detect Improper Payments, (3) Anti-Money 

Laundering and Terrorist Financing/Bank 

Secrecy Act Enforcement, (4) Management of 

Treasury’s Authorities Intended to Support 

and Improve the Economy, including 

administration of the Gulf Coast Restoration 

Trust Fund. 

In support of Treasury’s mission, the OIG 

established the following strategic goals. 

 Promote the integrity, efficiency, and 

effectiveness of programs and operations 

across Treasury OIG’s jurisdictional 

boundaries through audits and 

investigations 

 Proactively support and strengthen the 

ability of programs across Treasury OIG’s 

jurisdictional boundaries to identify 

challenges and manage risks 

 Fully and currently inform stakeholders of 

Treasury OIG findings, recommendations, 

investigative results, and priorities 

 Enhance, support, and sustain a workforce 

and strengthen internal operations to 

17
Department of the Treasury – Budget in Brief 

achieve the Treasury OIG mission, vision, 

and strategic goals 

OIG FY 2018 Budget Highlights 

Dollars in Thousands

Office of Inspector General FTE Amount

FY 2017 Annualized CR 194 $35,349

Changes to Base:

Maintaining Current Levels (MCLs): - $729

Pay-Raise - $401

Pay Annualization - $147

Non-Pay - $180

Subtotal Changes to Base - $729

Total FY 2018 Base 194 $36,078

Program Changes:

Program Decreases: - ($1,966)

Reduce Audit Staffing -19 (1,966)

Total FY 2018 Request 175 $34,112

FY 2018 Budget Adjustments 

Adjustments to Request 

Maintaining Current Level (MCLs) 

Pay-Raise +$401,000/ +0 FTE 

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$147,000 / +0 FTE 

Funds are requested for annualization of the 

January 2017 pay-raise. 

Non-Pay +$180,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Program Decreases 

Reduce Audit Staffing -$1,966,000 / -19 FTE 

Reduce Audit Staffing. 

Explanation of Budget Activities 

Audit 26,266,000 from direct 

appropriations, $10,000,000 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 

(Council). The requested funding for FY 2018 

is necessary to perform mandated work and 

maintain an appropriate level of oversight of 

Treasury and Council programs and operations 

consistent with its responsibilities under the 

Inspector General Act. The OIG also responds 

to requests by Treasury and Council officials 

and the Congress for specific work. 

Reimbursable funding supports agreements for 

contracted audits as well as oversight of the 

Small Business Lending Fund (SBLF) 

programs. SBLF program oversight and 

expected performance is detailed in the SBLF 

Program Office budget submission. 

Investigations $7,846,000 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 of Investigations 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, 

and/or perpetrate fraud impacting the Bank 

Secrecy Act oversight responsibilities of 

Treasury Bureaus, subsequently defrauding the 

nation’s financial infrastructure and eroding 

the public’s trust. 

In addition to the grant programs listed above, 

the Office of Investigations has seen a noted 

increase in fraud impacting other significant 

18
Department of the Treasury – Budget in Brief 

Treasury programs and operations including 

fraud impacting the myRA program, Treasury 

Direct program, and the Treasury payment 

processing service operated by the Bureau of 

Fiscal Service. 

The OIG 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 impersonated and Treasury seals are 

being used to defraud victims. 

Legislative Proposals 

The OIG has no legislative proposals. 

OIG Performance Highlights 

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measure Actual Actual Actual Target Target Trend

Audit Number of Completed Audit 

Products 75.0 86.0 98.0 86.0 74.0

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 87.0 84.0 80.0 80.0

Key: DISC - Discontinued, B – Baseline 

Description of Performance 

The Office plans to complete 86 audit products 

in FY 2017 and 74 in FY 2018. The reduced 

number of audit products in FY 2018 is the 

result of a significant rent increase in FY 2018 

that will consume resources that would 

otherwise be used to fully staff the Office of 

Audit. In FY 2016, the Office of Audit 

completed 98 audit products, exceeding the 

planned target of 77. In FY 2016, the Office 

met its mandated audit requirements and 

identified $1.8 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 2016 the OIG exceeded the 

Investigative Performance Measure target 

(Target-80 percent; Actual 84 percent) opened 

144 new investigations, and closed 72 

investigations. The OIG also referred 43 

investigations that substantiated administrative 

violations against a Treasury employee to the 

appropriate regulated bureau for action. In 

addition, the OIG referred 159 investigations 

for criminal prosecution and 46 investigations 

for civil 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. 

19
Department of the Treasury – Budget in Brief 

20
Department of the Treasury – Budget in Brief 

Special Inspector General for TARP 

Program Summary by Budget Activity 

Note: FY 2016 Other resources reflect actual obligations. 

Summary 

The FY 2018 Budget proposes $20,297,000, 

which is 50 percent below the FY 2017 

Annualized CR level.1

 Treasury has 

committed $38 billion for TARP housing 

programs, of which more than $8 billion 

remains outstanding for payments scheduled to 

occur through FY 2023.2

 Currently, TARP 

spending is approximately $1 billion per 

quarter. Of the amount proposed, 81 percent is 

for investigations and 19 percent is for audits. 

SIGTARP’s criminal investigations of TARP 

recipients counter threats to public safety and 

Government interests, including public 

corruption, antitrust (unfair competition), 

contract fraud, financial institution fraud, and 

mortgage fraud. SIGTARP’s audits identify 

costly waste, abuse, risk of fraud, and 

inefficiency. SIGTARP has ongoing criminal 

investigations into TARP recipients, and 

 

1 Including $200,000 for training and $40,000 to the Council of the 

Inspectors General on Integrity and Efficiency. 

2

 Of this amount, $7.01 billion is obligated to be paid and $3.93 billion 

committed in the Making Home Affordable Program and $3.2 billion 

is obligated to be paid in the Hardest Hit Fund program. 

ongoing audits requested by members of 

Congress. Under TARP’s Hardest Hit Fund, 

which was scheduled to end in FY 2018, but 

was extended and expanded by $2 billion in 

the Consolidated Appropriations Act, 2016 

(P.L. 114-113), recipients of TARP dollars 

include 19 state housing finance agencies, 

38 cities/counties, 147 individuals, eight forprofit companies, 158 non-profits, 39 land 

banks, hundreds of demolition contractors, 

homebuyers, and homeowners. Separately, 

recipients of TARP dollars through the 

Making Home Affordable Program include 

Ocwen Loan Servicing, Wells Fargo Bank, 

JPMorgan Chase Bank, Bank of America, 

Nationstar Mortgage, Select Portfolio 

Servicing, CitiMortgage, and more than 130 

other mortgage servicers. 

SIGTARP’s investigations have recovered $10 

billion, which translates to a 40-times return 

on investment from its annual appropriations 

through FY 2016.3

 This is in addition to $2 

 

3

 Includes fines, restitution, forfeiture, and full homeowner relief by a 

large financial institution. 

Dollars in thousands

FY 2016 FY 2017 FY 2018

Budget Activity Enacted Annualized CR Request Change % Change

Investigations 31,801 32,069 16,441 (15,628) -48.73%

Audit 8,870 8,525 3,856 (4,669) -54.77%

Subtotal Appropriated Resources $ 40,671 $ 40,594 $ 20,297 $ (20,297) -50.00%

Unobligated Balances Brought Forward - 4,000 11,090 7,090 177.25%

Available PPIP Funds 475 1,548 1,613 65 4.20%

Total Program Operating Level $ 41,146 $ 46,142 $ 33,000 $ (13,142) -28.48%

FY 2016 FY 2017 FY 2018

Budget Activity Enacted Enacted Request Change % Change

Investigations 32,276 36,770 26,730 (10,040) -27.30%

Audit 8,870 9,372 6,270 (3,102) -33.10%

Total SIGTARP by Budget Activity $ 41,146 $ 46,142 $ 33,000 $ (13,142) -28.48%

Total FTE 192 192 100 (92) -47.92%

FY 2018 to FY 2018

FY 2016 to FY 2017

21
Department of the Treasury – Budget in Brief 

billion in cost-saving audit recommendations, 

including $161 million in savings that will be 

realized from implemented recommendations 

this year. For the last three fiscal years, 

recoveries to the Government exceeded 

SIGTARP’s budget proposal and offset 

taxpayer losses. SIGTARP has developed a 

deep expertise in identifying crime in TARP, 

with 394 defendants criminally charged, nearly 

100 of which were charged in FY 2016-2017. 

SIGTARP investigations have also resulted in 

significant Department of Justice enforcement 

actions against TARP recipients Bank of 

America, JPMorgan Chase Bank, Goldman 

Sachs, Morgan Stanley, Ally Financial, 

SunTrust Bank, Fifth Third Bank, and General 

Motors. SIGTARP audits in FY 2016-2017 

identified costly waste, abuse, and risk of 

criminal behavior in ongoing TARP programs. 

SIGTARP FY 2018 Budget Highlights 

FY 2018 Budget Adjustments 

Pay Raise +$465,000 / +0 FTE 

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$170,000 / +0 FTE 

Funds are requested for annualization of the 

January 2017 pay-raise. 

Non-Pay +$174,000 / +0 FTE 

Funds are requested for non-labor expenses 

such as travel, contracts, rent, contracts, 

supplies, and equipment. 

Technical FTE Adjustment 

-$14,600,000 / -92 FTE 

The technical adjustment reduces the 

appropriated FTE level. 

Reduce Support Services -$6,506,000 / -0 

FTE 

SIGTARP will also seek to reduce nonpersonnel costs. 

Explanation of Budget Activities 

Investigations ($16,441,000 from direct 

appropriations)

The Investigations budget activity supports 

SIGTARP’s priority of law enforcement of 

crimes related to TARP. 

Audit ($3,856,000 from direct 

appropriations) 

The Audit budget activity supports 

SIGTARP’s priority of being an independent 

watchdog over the billions of TARP dollars 

being disbursed. 

Both activities support and complement 

Treasury’s efforts to safeguard and protect the 

integrity of the financial system. SIGTARP 

coordinates with other law enforcement 

agencies, leveraging its unique position and 

expertise by forming law enforcement 

partnerships. 

Public-Private Investment Program (PPIP) 

SIGTARP is requesting that PPIP funds be 

made available to support SIGTARP’s 

oversight of ongoing TARP programs. 

Please refer to the Summary of FY 2018 

Appropriations Language later in this 

document or SIGTARP’s Congressional 

Justification for proposed language.

Special Inspector General for TARP FTE Amount

FY 2017 Annualized CR 184 $40,594 

Changes to Base:

Maintaining Current Levels (MCLs): $809 

Pay raise 465 

Pay annualization 170 

Non-pay 174 

Program Reductions (92) (21,106)

Technical FTE Adjustment (92) (14,600)

Reduce Support Services (6,506)

Subtotal Changes to Base (92) (20,297)

Total FY 2018 Base 92 $20,297 

Total FY 2018 Request 92 $20,297 

22
Department of the Treasury – Budget in Brief 

SIGTARP Performance Highlights 

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Investigations

Percentage of Cases Accepted 

for Consideration by Civil or 

Criminal Authorities Resulting 

in a Positive Final Outcome

N/A N/A 77.0 70.0 70.0 N/A

Investigations

Percentage of Cases 

Presented to Civil or Criminal 

Authorities within Eight Months 

of the Case Being Opened

N/A N/A 80.0 70.0 50.0 N/A

Investigations

Percentage of Cases That are 

Joint Agency/Task Force 

Investigations

75.5 69.65 71.0 70.0 50.0

Investigations

Percentage of Preliminary 

Investigations Converted to 

Full Investigations within 180 

Days

95.75 100.0 99.0 80.0 60.0

Audit

Number of Completed Audit 

Products including Referral to 

Investigations Division (Units)

N/A N/A 11 7.0 3.0 N/A

Key: DISC - Discontinued, B - Baseline

Description of Performance 

SIGTARP exceeded all metrics in FY 2016. 

In FY 2016, the “Percentage of Cases That are 

Joint Agency/Task Force Investigations” with 

other law enforcement agencies was 

71 percent. In FY 2016, “Percentage of 

Preliminary Investigations Converted to Full 

Investigations within 180 days” was 

99 percent, exceeding the target of 80 percent. 

The “Percentage of Cases Accepted for 

Consideration by Civil or Criminal Authorities 

Resulting in a Positive Final Outcome” in 

FY 2016 was 77 percent success rate, 

exceeded its target of 60 percent. During 

FY 2016, the “Percentage of Cases Presented 

to Civil or Criminal Authorities within Eight 

Months of the Case Being Opened,” was 

80 percent, exceeding the target of 70 percent. 

SIGTARP exceeded its performance measure 

“Number of Completed Audit Products 

including Referrals to Investigations Division” 

of seven in FY 2016, with 11 products. 

SIGTARP exceeded its 85 percent goal of 

“Percentage of Congressional Inquiries 

Responded to within 45 Days of Receipt,” at 

100 percent. 

23
Department of the Treasury – Budget in Brief 

Comments of the Honorable Christy Goldsmith Romero 

Special Inspector General Troubled Asset Relief Program 

on the FY 2018 Proposed Funding Level 

Under the provisions of section 6(f)(3)(E) of the Inspector General Act of 1978, as amended, as 

applied through the Emergency Economic Stabilization Act of 2008, the Special Inspector 

General has provided the following comments regarding FY 2018 proposed funding: 

The FY 2018 budget request substantially inhibits the Office of the Special Inspector General 

(OIG) for TARP from performing the duties of the office, including audits and criminal 

investigations. The proposed funding represents a 50% reduction ($20 million) from the FY 

2017 level enacted by the Congress, despite the Federal Government’s continued ownership 

or control of troubled assets in TARP housing programs that are $38 billion in size – the 

same size as last year. This year alone (FY 2018), Treasury will spend $4 billion in TARP. 

This spending is in two programs: (1) the recently expanded and extended Housing Finance 

Agency Innovation Fund for the Hardest Hit Housing Markets (Hardest Hit Fund or HHF); 

and (2) TARP’s Making Home Affordable Program (MHA), which has spent just over half 

(60%) of obligated/committed TARP dollars. 

In the Consolidated Appropriations Act of 2016, the Congress authorized an extension and 

an additional $2 billion in the Hardest Hit Fund. With that authorization, Treasury extended 

the spending of Federal dollars in HHF from FY 2018 to FY 2022. There are $3.2 billion in 

unspent Federal dollars in HHF. Recipients of these Federal TARP dollars are 19 state 

agencies, 38 cities/counties, 147 individuals, 8 for-profit companies, 158 non-profits, 39 land 

banks, hundreds of demolition contractors and subcontractors (including asbestos,

inspection and removal, waste disposal, fill dirt, grading, greening, site inspection, 

maintenance), homebuyers, and homeowners. 

The OIG’s investigations and audits have revealed risks of criminal behavior, fraud, waste, 

and abuse in the Hardest Hit Fund program. The OIG’s FY 2016 audit revealed that the 

HHF blight demolition program is significantly vulnerable to the substantial risk of unfair 

competitive practices, including favoritism, undue influence, contract steering, bid-rigging, 

and other closed-door contracting processes, as well as fraudulent overcharging. Only two 

of 20 recommendations in that audit have been implemented. Other FY 2016 audits revealed 

abuse related to evicting people out of their homes to qualify for TARP-funded demolition, 

and $8.2 million in waste of TARP dollars by a state agency contractor. 

Additionally, in the Consolidated Appropriations Act of 2016, the Congress terminated MHA, 

but exempted homeowners who applied before December 31, 2016. Just over half (60%) of 

these federal dollars have been paid to Ocwen, Wells Fargo, JPMorgan Chase, Bank of 

America, Nationstar, SPS, CitiMortgage, and more than 130 mortgage servicers, investors 

and homeowners. Treasury is obligated or committed to pay a remaining $10.94 billion 

through FY 2023. Program participation has remained steady at about one million 

homeowners in FY 2015, FY 2016 and FY 2017. The OIG’s investigations with the Justice 

Department, and audits, have revealed a track record of violations of TARP rules and the 

24
Department of the Treasury – Budget in Brief 

law by some servicers in MHA and warned of risk of fraud, waste, and abuse to the Federal 

Government and homeowners. 

The OIG has a significant number of ongoing criminal investigations of recipients of Federal 

dollars in TARP, in addition to audits of TARP recipients. The proposed budget effectively 

removes the resources necessary for the OIG to: (1) identify costly waste and abuse, as well 

as cost savings through ongoing and future audits, and (2) conduct ongoing and future 

criminal investigations that (a) counter threats, including public corruption, antitrust (unfair 

competition), contract fraud, financial institution fraud, and mortgage fraud, and (b) lead to 

indictments, convictions, prison sentences, and recoveries. This places critical Federal 

Government interests at risk, and substantially inhibits the OIG in carrying out its duties and 

responsibilities. 

25
Department of the Treasury – Budget in Brief 

26
Department of the Treasury – Budget in Brief 

Treasury Inspector General for Tax Administration 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Enacted Annualized CR Request $ Change % Change

Audit $65,100 $64,976 $62,704 ($2,272) -3.50%

Investigations $102,175 $101,981 $98,409 ($3,572) -3.50%

Subtotal, TIGTA $167,275 $166,957 $161,113 ($5,844) -3.50%

Offsetting Collections - Reimbursables $535 $1,500 $600 ($900) -60.00%

Total Program Operating Level $167,810 $168,457 $161,713 ($6,744) -4.00%

Direct FTE 787 859 819 (40) -4.66%

Reimbursable FTE 2 2 2 0 0.00%

Total FTE 789 861 821 0 -4.65%

Note: FY 2016 FTE & Other Resources are Actual 

Summary 

The Treasury Inspector General for Tax 

Administration’s (TIGTA) Fiscal Year 

(FY) 2018 budget request of $161,113,000 

represents a decrease of 3.5 percent below its 

FY 2017 Annualized Continuing Resolution 

(CR) amount. These resources will fund 

critical audit, investigative, and inspection and 

evaluation services to protect the integrity of 

the Nation’s system of tax administration. 

TIGTA’s vision is 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.” While there are a number of 

critical areas where TIGTA will provide 

oversight, its FY 2018 priorities include: 

 Identifying opportunities to improve the 

administration of the Nation’s tax laws, 

improve tax compliance, and achieve 

program efficiencies and cost savings; 

 Mitigating security risks affecting taxpayer 

data, tax systems, and Internal Revenue 

Service (IRS) employees; 

 Protecting the integrity of the IRS by 

effectively investigating the international 

IRS impersonation scam that has impacted 

more than 1.9 million Americans; 

 Conducting criminal investigations of 

individuals and groups who impersonate 

the IRS in order to victimize senior 

citizens and other vulnerable Americans; 

 Developing advanced analytics and 

innovative approaches to help prevent and 

detect the flow of dollars fraudulently 

obtained by criminals and IRS employees; 

 Providing the IRS with the investigative 

coverage and the information necessary to 

mitigate domestic and foreign threats 

against its employees, facilities, and data 

systems; 

 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; 

 Rapidly and effectively responding to 

attempts to impersonate the IRS for 

fraudulent purposes; 

 Overseeing the IRS’s efforts to administer 

tax law changes related to health care; and 

27
Department of the Treasury – Budget in Brief 

 Overseeing the IRS’s efforts to increase 

international tax compliance. 

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 high-risk 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 ensure the integrity of IRS 

employees, protect the IRS and its employees, 

and help the IRS protect and secure 

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. 

TIGTA FY 2018 Budget Highlights 

Dollars in Thousands

Treasury Inspector General for 

Tax Administration FTE Amount

FY 2017 Annualized CR 859 $166,957

Changes to Base:

Maintaining Current Levels (MCLs): - $3,335

Pay-Raise - $1,951

Pay Annualization - $715

Non-Pay - $669

Subtotal Changes to Base - $3,335

Total FY 2018 Base 859 $170,292

Program Changes:

Program Decreases: (40) ($9,179)

Reduce Audit and Investigation Activity 

Levels for Labor Costs and Staffing (40) ($6,595)

Operating Cost Reductions - ($2,584)

Total FY 2018 Request 819 $161,113

FY 2018 Budget Adjustments 

Adjustments to Request 

Maintaining Current Level (MCLs) 

Pay-Raise +$1,951,000 / +0 FTE 

Funds are required for the proposed January 

2018 pay-raise. 

Pay Annualization +$715,000 / +0 FTE 

Funds are required for annualization of the 

January 2017 pay-raise. 

Non-Pay +$669,000 / +0 FTE 

Funds are requested for non-labor expenses 

such as travel, contracts, rent, supplies, and 

equipment. 

Program Decreases 

Reduce Audit and Investigation Activity 

Levels for Labor Costs and Staffing 

-$6,595,000 / -40 FTE 

Audit and Investigations Activity levels will 

be reduced for labor costs and FTE. Reaching 

this savings target without impacting the 

quality of TIGTA’s programs will require a 

combination of actions to include balancing 

mission and workload with available FTE. 

The reduction of 40 FTE will result in a 

reduced number of investigations and audits in 

FY 2018. Since FY 2015, the number of 

mandated audits increased from 17 to 22. 

28
Department of the Treasury – Budget in Brief 

Therefore, for the Office of Audit (OA), a 

reduction of FTE will result in a higher 

percentage of resources being devoted to 

mandated audits versus the high-risk audits 

that are more likely to result in quantifiable 

outcomes, such as cost savings, revenue 

protection, and taxpayer privacy and security. 

For the Office of Investigations (OI), staffing 

reductions will limit TIGTA’s ability to 

respond to every allegation of IRS employee 

misconduct, and it will extend the amount of 

time it takes to investigate all of the allegations 

received by TIGTA. 

Operating Cost Reductions -$2,584,000 / +0 

FTE 

TIGTA has closely scrutinized its operational 

requirements for the impact of budget 

reductions. With the reduction in FTE levels 

in Audit and Investigations Activities, there 

will be a corresponding reduction in 

operational costs. TIGTA continues to 

identify cost-savings in travel, training, and 

contracts. Further cuts will be made in these 

areas to reduce budget impact on TIGTA’s 

staffing levels. TIGTA will look for contract 

efficiencies from continued evaluation of 

contracts for strategic sourcing and negotiation 

of more advantageous contract terms. 

Additionally, TIGTA has aggressively 

implemented its telework program in order to 

reduce its footprint. 

Explanation of Budget Activities 

Audit $62,704,000 from direct 

appropriations 

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 risk-assessment 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 2016, OA issued 89 audit reports 

that included potential financial benefits of 

approximately $14.6 billion a n d affected 

approximately 1 million taxpayer accounts. In 

FY 2014, several k e y Affordable Care Act 

(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 are eligible to 

receive the Premium Tax Credit. As such, 

FY 2015 and FY 2016 were 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 $98,409,000 from direct 

appropriations, $600,000 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 

29
Department of the Treasury – Budget in Brief 

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 2016, 45 

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. 

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 85,000 employees 

and 540 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 

authorizes 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, including criminal 

misconduct by nonemployees, such as 

impersonation of the IRS, attempted bribery 

of IRS employees, international cybercrime 

and identity theft, and procurement fraud. 

Many IRS employees are in direct contact with 

taxpayers and 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 a threat to the integrity of the IRS 

and the Nation’s system of tax administration. 

 

Additionally, TIGTA is 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. A s o f M a r c h 3 1 , 2 0 1 7 , 

TIGTA received more than 1.9 million reports 

related to this type of contact; and more than 

10,300 taxpayers have been defrauded out of 

more than $55 million as a result of 

impersonation scams. 

In May 2015, the IRS 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 was investigated. 

On June 2016, after an extensive review, the 

IRS turned both the “Get Transcript” 

application and the associated EAuthentication gateway back on. However, 

the security of these two systems continues to 

30
Department of the Treasury – Budget in Brief 

be of great concern and OI is currently 

conducting investigations of recent breaches 

of the “new systems.” 

As part of its overall investigation into the 

data breach, 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. 

TIGTA Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Audit

Percentage of Audit Products 

Delivered when Promised to 

Stakeholders

65.0 80.0 75.0 68.0 68.0

Audit

Percentage of 

Recommendations Made that 

Have Been Implemented

89.0 92.0 97.0 85.0 85.0

Investigations Percentage of Results from 

Investigative Activities 92.0 93.0 90.0 81.0 81.0

Key: DISC - Discontinued, B – Baseline 

Description of Performance 

 For FY 2016, OA issued 89 final audit 

reports identifying approximately $14.6 

billion in potential financial benefits. 

 For FY 2016, the actual Percentage of 

Audit Products Delivered when Promised 

to Stakeholders was 75 percent, which 

exceeded the full-year target of 68 

percent. TIGTA exceeded this target as a 

result of ongoing supervisory monitoring 

of the execution of audits to ensure timely 

audit products to stakeholders. 

 The FY 2016 actual Percentage of 

Recommendations Made that Have Been 

Implemented was 97 percent. TIGTA 

exceeded its target as a result of 

continuous 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 2018, OA’s p e r f o r m a n c e 

targets are 68 percent of Audit 

Products Delivered when Promised to 

Stakeholders and 85 percent of 

Recommendations Made that Have Been 

Implemented. 

 During FY 2016, TIGTA initiated 16 

proactive investigative initiatives to detect 

systemic weaknesses or potential IRS 

31
Department of the Treasury – Budget in Brief 

program vulnerabilities. TIGTA processed 

14,499 complaints, opened 2,879 

investigations, and closed 2,887 

investigations in FY 2016. During this 

period, TIGTA referred for IRS action 

1,032 cases of employee misconduct, and 

122 cases of all types of investigations 

were accepted for criminal prosecution. 

 For FY 2016, the Percentage of Results 

from Investigative Activities was 

90 percent, which exceeded the full-year 

target of 81 percent. OI exceeded the 

FY 2016 performance measure as a result 

of the hard work of experienced 

executives, managers, and special agents. 

 For FY 2018, OI’s performance target is 

79 percent of Results from Investigative 

Activities. This number is adjusted to 

reflect the fewer number of experienced 

FTE which will decrease the total number 

of results OI will achieve as a result of its 

investigative activities. 

32
Community Development Financial Institutions Fund

Program Summary by Budget Activity

Dollars in Thousands

Community Development Fund 

Insitutaions Fund

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Community Development Fund Institutions 

Program 0 $153,423 0 $153,131 0 0 ($153,131) NA -100%

Bank Enterprise Award Program 0 $19,000 0 $18,964 0 0 ($18,964) NA -100.00%

Native American CDFI Assistance 

Program 0 $15,500 0 $15,471 0 0 ($15,471) NA -100.00%

Administration 77 $23,600 77 $23,555 42 $14,000 (35) ($9,555) -45.45% -40.56%

Healthy Food Financing Program 0 $22,000 0 $21,958 0 0 ($21,958) NA -100.00%

Subtotal New Appropriated Resources 77 $233,523 77 $233,079 42 $14,000 (35) ($219,079) -45.45% -93.99%

Other Resources: NA NA

User Fees* 0 $220 0 $362 0 $619 0 $257 NA 70.99%

Recoveries from Prior Years 0 $3,375 0 $3,400 0 $3,400 0 $0 NA 0.00%

Unobligated Balances Brought Forward 0 $5,500 0 $21,545 0 $18,964 0 ($2,581) NA -11.98%

Subtotal Other Resources 0 $9,095 0 $25,307 0 $22,983 0 ($2,324) NA -9.18%

Total Budgetary Resources 77 $242,618 77 $258,386 42 $36,983 (35) ($221,403) -45.45% -85.69%

FY 2016 FY 2017 FY 2018 FY 2017 to FY 2018

*This request reflects authorization of the Bond Guranatee Program in FY 2016

Actual Annualized Request $ Change % Change

Summary

The FY 2018 Budget requests an appropriation 

of $14,000,000 for the Community 

Development Financial Institutions Fund

(CDFI Fund) to maintain the existing portfolio 

of loans and grants and to administer the Bond 

Guarantee (BG) Program and the New 

Markets Tax Credit (NMTC) Program. 

Explanation of Budget Activities

Administration $14,000,000 from direct 

appropriations

Administration encompasses the CDFI Fund’s 

operational support and management activities 

for the CDFI BG Program, the NMTC 

Program, and ongoing certification and 

compliance monitoring for all programs 

including the Bank Enterprise Award (BEA) 

Program, Community Development Financial 

Institutions (CDFI) Program, Native American 

CDFI Assistance (NACA) Program and 

Healthy Food Financing Initiative (HFFI). 

Legislative Proposals

The Budget requests extension of the CDFI 

BG Program through FY 2018. 

By providing guarantees of bonds issued by 

Qualified Issuers, the CDFI BG Program 

injects new capital into our nation’s most 

distressed communities. CDFIs can gain from 

the potential scale of the CDFI BG Program, 

which offers low-cost, long-term credit for the 

development of commercial real estate, rental 

housing, senior living, daycare or healthcare 

centers, small businesses, and rural 

infrastructure, among others. The benefits of 

the program are realized at no cost to 

taxpayers as the program requires no credit 

subsidy. 

The Budget proposes the following legislative 

changes to the BG Program: (i) to reduce the 

minimum bond issue size from $100 million to 

$50 million; and (ii) to revise the relending 

account language to correct a technical 

drafting error.

The Budget proposes to eliminate new 

allocations into the Capital Magnet Fund (CMF)

effective in FY 2018. This would eliminate 

recurrent funding of the CMF through 

allocations from the Government-Sponsored 

Enterprises, Fannie Mae and Freddie Mac.

33
Description of Performance

In the FY 2016 funding round of the CDFI 

Program, the CDFI Fund received applications 

from 423 organizations, requesting over $554 

million in financial and technical assistance 

awards. In addition, 34 qualified organizations 

applied for the HFFI requesting over $121 

million. In September 2016, the CDFI Fund 

awarded more than $148 million in grants and 

loans to 158 CDFIs. Additionally 9 

organizations were awarded $22 million for 

HFFI. In the FY 2016 funding round of the 

NACA Program, the CDFI Fund received 

applications from 61 organizations, requesting 

$38 million in financial and technical 

assistance awards. In September 2016, the 

CDFI Fund awarded $15.5 million in grants to 

38 CDFIs. This activity shows the continued 

strong growth in demand for CDFI Fund 

Programs. 

In FY 2016, CDFI Program awardees reported 

that over 81.5 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 

may need to address safety and soundness by 

maintaining a diversified portfolio. Loans in 

highly distressed areas may be higher risk and 

more costly to underwrite and originate. 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 2016, 23 prior HFFI awardees reported 

261 HFFI investments totaling $137.9 million. 

There were 131 retail investments totaling 

over $115 million that developed 1,581,243 

square feet of new retail space for projects 

ranging from small green grocers to large 

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

130 non-retail investments totaling over $23 

million in projects involving production and 

distribution, which developed 1,718,088 

square feet of space for eligible healthy food 

activities.

The All-application-award Cycle Time 

measures the average time from the date when 

applications are received to the date of award 

announcement (calculated in months as a 

weighted average). In FY 2016, the cycle time 

was 7.6 months, missing the target of 7 months 

as a result of additional application volume 

and implementation of the reestablished CMF 

Program. 

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 and allocatees. In 

FY 2016, the actual results of 35,251 

affordable housing units exceeded the target of 

29,000 units. For FY 2018, a target is set that 

includes expected outcomes for the CMF and 

NMTC programs as well as measureable 

outputs from prior year CDFI and NACA 

program awardees. 

The calendar year 2015 and 2016 NMTC 

investment authority was allocated in 

November 2016 as a combined round. The 

NMTC Program awarded $7 billion in NMTC 

investment authority to 120 Community 

Development Entities from a pool of 238 

applicants 

34
Financial Crimes Enforcement Network 

Program Summary by Budget Activity

Dollars in Thousands

FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Enacted Annualized CR Request $ Change % Change

BSA Administration and Analysis $112,979 $112,764 $112,764 $0 0.00% 

Subtotal, FINCEN $112,979 $112,764 $112,764 $0 0%

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

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

Total Program Operating Level $116,500 $116,264 $116,264 $0 0.00% 

Direct FTE 278 338 332 (6) -1.78% 

Reimbursable FTE 1 1 1 0 0.00%

Total FTE 279 339 333 (6) -1.77% 

Note: FY 2016 is showing actual FTE usage. The 338 Direct FTE in FY 2017 is a reduction from 343 enacted in FY 2016 due to the

absorption of the 2017 pay raise and 2016 pay annualization.

Summary

FinCEN is a bureau in the U.S. Department of 

the Treasury. The Director of FinCEN reports

to the Under Secretary for Terrorism and 

Financial Intelligence. FinCEN’s mission 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. 

FinCEN FY 2018 Budget Highlights

Dollars in Thousands

Financial Crimes Enforcement 

Network (FINCEN) FTE Amount

FY 2017 Annualized CR 338 $112,764 

Changes to Base:

Maintaining Current Levels (MCLs): - $2,276 

Pay-Raise - $783 

Pay Annualization - $287 

Non-Pay - $1,206 

Efficiency Savings - ($1,206)

Efficiency Savings - ($1,206) 

Subtotal Changes to Base - $1,070 

Total FY 2018 Base 338 $113,834 

Program Changes:

Program Decreases (6) ($1,070)

Program Staffing Reductions (6) ($1,070) 

Subtotal Program Changes (6) ($1,070) 

Total FY 2018 Request 332 $112,764 

Note: The 338 FTE in FY 2017 is a reduction from 343 enacted 

in FY 2016 due to the absorption of the 2017 pay raise and 

2016 pay annualization.

FY 2018 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$783,000 / +0 FTE

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$287,000 / +0 FTE

Funds are requested for annualization of the 

January 2017 pay-raise.

Non-Pay +$1,206,000 / +0 FTE

Funds are requested for non-labor expenses 

such as travel, contracts, rent, contracts, 

supplies, and equipment.

Efficiency Savings

Efficiency Savings -$1,206,000 / +0 FTE

These efficiencies are a result of reductions in 

printing and savings realized through re-evaluated 

or negotiated contracts. 

Program Decreases 

Program Staffing Reductions -$1,070,000 / 

-6 FTE This reduction will be taken across 

several FinCEN program areas. FinCEN will 

evaluate open positions for possible absorption 

of workload associated with positions lost 

through attrition. 

35
Explanation of Budget Activities

BSA Administration and Analysis

($112,764,000 from direct appropriations, 

$3,000,000 from reimbursable resources) 

This activity comprises FinCEN’s efforts to 

develop and issue regulations under the Bank 

Secrecy Act (BSA); enforce compliance with 

the BSA in partnership with regulatory 

partners and as the sole BSA regulator across 

numerous 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 financial intelligence units 

(FIU), and industry; and serve as the U.S. FIU 

and maintain a network of information sharing 

with FIUs in partner countries. 

Legislative Proposals

FinCEN has no legislative proposals. 

FinCEN Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

BSA 

Administration 

and Analysis

Percentage of Users Finding 

That the Financial Intelligence 

Collected by FinCEN Pursuant 

its Regulations Provides 

Valuable Information to 

Safeguard the Financial 

System, Combat Money 

Laundering, and Counter 

Terrorist Financing

81.0 83.0 84.0 85.0 86.0

BSA 

Administration 

and Analysis

Percentage of Users Satisfied 

with FinCEN Information 

Sharing Systems

78.0 80.0 83.0 84.0 84.0

Key: DISC - Discontinued, B - Baseline

Description of Performance

FinCEN conducts annual surveys of users on 

the utility and value of FinCEN’s information, 

analysis, and systems. The results provide 

valuable feedback on FinCEN’s performance 

safeguarding the financial system from illicit 

use, combatting money laundering and 

promoting national security. 

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. This measure supports 

FinCEN Strategic Objective 1.1 to adopt 

strong AML/CFT regulatory safeguards. In 

FY 2016, FinCEN met its target of 84 percent, 

with 84 percent finding value. FinCEN 

attained this result by continued emphasis on 

on-line training for users of the FinCEN Query 

tool for their unique cases and situations. The 

target increases to 85 percent and 86 percent in 

FY 2017 and FY 2018. 

FinCEN tracks the percentage of users 

satisfied with FinCEN information sharing 

systems. This measure supports FinCEN 

Strategic Objective 2.2 to develop and support 

effective technology systems to collect and 

analyze financial intelligence from private 

industry and share it with domestic and foreign 

government partners. The measure represents 

user satisfaction with the BSA E-Filing

System, FinCEN Query, and the Egmont 

Secure Web. In FY 2016, FinCEN exceeded 

its target of 80 percent with 83 percent of the 

users satisfied with information sharing 

36
systems. FinCEN strives to provide systems 

with fast response times. FinCEN also 

continues to receive positive feedback on the 

usefulness of the data, and for knowledgeable 

and courteous user support. In FY 2017 and 

FY 2018 targets are set at 84. 

37
Department of the Treasury – Budget in Brief 

38
Alcohol and Tobacco Tax and Trade Bureau

Program Summary by Budget Activity

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Enacted Annualized CR Request $ Change % Change

Collect the Revenue $52,785 $53,458 $49,425 ($4,034) -7.55%

Protect the Public $53,654 $52,779 $49,233 ($3,545) -6.72%

Subtotal, TTB $106,439 $106,237 $98,658 ($7,579) -7.13%

Offsetting Collections - Reimbursables $6,992 $6,972 $6,972 ($0) -00.00%

Total Program Operating Level $113,431 $113,209 $105,630 ($7,579) -6.69%

Direct FTE 470 494 456 (38) -7.69%

Reimbursable FTE 10 10 10 0 0.00%

Total FTE 480 504 466 (38) -7.54%

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 (FAA) 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 2018, 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 2018 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 2018 are $105,630,000, 

including $98,658,000 from direct 

appropriations, and $6,972,000 from other 

offsetting collections and reimbursable 

programs. 

TTB FY 2018 Budget Highlights

Dollars in Thousands

Alcohol and Tobacco Tax and Trade Bureau FTE Amount

FY 2017 Annualized CR 494 $106,237

Changes to Base:

Maintaining Current Levels (MCLs): - $2,102

Pay-Raise - $909

Pay Annualization - $333

Non-Pay - $860

Efficiency Savings: - ($570)

Reduce Infrastructure Footprint - ($250)

Reduce Support Services - ($320)

Subtotal Changes to Base - $1,532

Total FY 2018 Base 494 $107,769

Program Changes:

Program Decreases: (38) ($9,111)

Program Staff Attrition and Incentives (38) ($4,150)

IT Development and Modernization - ($2,500)

Program Contract Reductions - ($2,461)

Total FY 2018 Request 456 $98,658

39
FY 2018 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$909,000 / +0 FTE

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$333,000 / +0 FTE

Funds are requested for annualization of the 

January 2017 pay-raise.

Non-Pay +$860,000 / +0 FTE

Funds are requested for non-labor expenses 

such as travel, contracts, rent, supplies and 

equipment. 

Efficiency Savings

Reduce Infrastructure Footprint -$250,000 / 

-0 FTE

TTB has implemented an aggressive telework 

program that has enabled the bureau to close 

half of its field offices, with the remaining 

field offices being vital to TTB’s mission. 

TTB has also reconfigured and reduced the 

amount of office space needed to operate its 

headquarters in Washington, D.C., and the 

National Revenue Center in Cincinnati. In an 

ongoing effort to improve space utilization, 

TTB has identified additional opportunities to 

reduce leased space, resulting in additional 

savings of $250,000. 

Reduce Support Services -$320,000 / 

-0 FTE

TTB will reduce its operating costs through 

savings in administrative overhead and 

decreased program support operations in line 

with anticipated program staff attrition.

Program Decreases

Program Staff Attrition and Incentives 

-$4,150,000 / -38 FTE

TTB will implement a hiring freeze to achieve 

a workforce reduction of 38 FTE. This 

reduction, 8 percent of TTB’s full-time 

positions, will be taken across multiple 

program areas. TTB will continuously 

evaluate the capacity of its workforce to 

absorb the workload associated with those 

positions lost through attrition and, as 

necessary, adjust its service standards to

coincide with staffing levels. This reduction 

also reduces performance incentives 

recognizing special acts and high-performing 

employees in order to minimize staffing 

losses.

IT Development and Modernization 

-$2,500,000 / -0 FTE

TTB will cut IT development and 

modernization investments in its core business 

systems and focus on the essential 

maintenance of existing systems. 

Program Contract Reductions -$2,461,000 / 

-0 FTE

TTB will reduce its contract services by 

reducing or re-scoping contracts for both its 

commercial vendors and government 

suppliers. TTB will prioritize the criminal 

case pipeline to ensure effective case 

management and resolution. 

Explanation of Budget Activities

Collect the Revenue ($49,425,000 from 

direct appropriations, $3,835,000 from 

reimbursable resources)

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 engage 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 2016, TTB collected excise 

taxes totaling $13 billion for tobacco products, 

40
$8 billion for alcohol beverage products, and 

$750 million for firearms and ammunition. 

Protect the Public ($49,233,000 from direct 

appropriations, $3,137,000 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 82,000 businesses that hold a 

TTB permit or registration. This budget 

activity supports 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 Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 –

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Collect the Revenue Activity of Revenue Collected Per 

Program Dollar 457.0 437.0 414.0* 400.0 400.0

Collect the Revenue

Percent of Voluntary Compliance from 

Large Taxpayers in Filing Tax Payments 

Timely and Accurately (In Terms of 

Revenue)

90.0 88.0 87.0 90.0 90.0

Protect the Public Percent of Electronically Filed Permit 

Applications (Note 1) 80.0 81.0 81.0 82.0 85.0

Protect the Public Percentage of Permit Applications 

Processed within Service Standards 58.0 47.0 32.0 85.0 85.0

Protect the Public Customer Satisfaction Rate with TTB 

Permitting Process B 76.0 71.0 80.0 80.0 

Protect the Public Percent of Electronically Filed Label and 

Formula Applications 93.0 94.0 97.0* 95.0 95.0 

Protect the Public

Percentage of Alcohol Beverage Label 

and Formula Applications Processed 

within Service Standards

67.0 75.0 75.0 85.0 85.0

Key: DISC - Discontinued, B - Baseline

*Exceeded FY16 target 

Note1: Reported results revised for FY14–FY15 due to an error identified in the source data for paper-filed original permit 

applications. 

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 2016, TTB 

met two 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 will continue to monitor its annual 

business plan and use performance 

information to improve the effectiveness of its 

programs. 

41
The investments in the Collect the Revenue 

activity resulted in the following performance 

highlights and accomplishments during 

FY 2016: 

• TTB collected $22 billion in excise taxes 

and other revenues from nearly 13,000 

taxpayers in the alcohol, tobacco, firearms, 

and ammunitions industries. The return on 

investment for the Collect the Revenue 

program was $414 for every $1 expended 

on collection activities, exceeding the 2016 

target of $400. 

• Since 2011, TTB’s criminal enforcement 

program has opened a total of 105 cases, 

with identified liabilities of over $591 

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 $85 

million.

• TTB processed $425 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 $356 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 2016: 

• TTB processed more than 161,000 

Certificate of Label Approvals (COLAs) to 

ensure compliance with the FAA Act 

provisions that prevent consumer 

deception. TTB also achieved a 97 percent 

electronic filing rate for alcohol beverage 

label and formula applications above the 

target of 95 percent. 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 approximately 6,250 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 430 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. 

42
Fiscal Service

Program Summary by Budget Activity

Dollars in Thousands

FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Enacted Annualized CR Request $ Change % Change

Accounting and Reporting $125,752 $124,352 $109,379 ($14,973) -12.04%

Collections $38,798 $38,598 $33,951 ($4,647) -12.04%

Payments $118,454 $117,362 $108,517 ($8,845) -7.54%

Retail Securities Services $70,038 $69,038 $65,712 ($3,326) -4.82%

Wholesale Securities Services $10,808 $13,808 $13,278 ($530) -3.84%

Subtotal, Fiscal Service $363,850 $363,158 $330,837 ($32,321) -8.90%

Reimbursable $349,801 $368,000 $377,980 $9,980 2.71%

Total Program Operating Level $349,801 $368,000 $377,980 $9,980 2.71%

Direct FTE 1,626 1,693 1,680 (13) -0.77%

Reimbursable FTE 417 427 427 0 0.00%

Total FTE 2,043 2,120 2,107 (13) -0.61%

Summary

The Bureau of Fiscal Service’s (Fiscal 

Service) multi-faceted mission supports the 

National Critical Financial Infrastructure of 

the Federal Government. Specifically, Fiscal 

Service provides central payment services to 

Federal Program Agencies (FPAs); operates 

the Federal Government's collections and 

deposit systems; provides government-wide 

accounting and reporting services; conducts all 

Treasury debt financing operations; issues, 

services, and accounts for all Treasury 

marketable securities and non-marketable 

securities, including U.S. savings bonds; 

delivers reimbursable support services to 

FPAs; and manages the collection of 

delinquent debt. The Fiscal Service is focused 

on maximizing efficiencies, transparency, and 

accountability with the goal of transforming 

government-wide financial management and 

the delivery of shared services. 

Fiscal Service FY 2018 Budget Highlights

Dollars in Thousands

Fiscal Service FTE Amount

FY 2017 Annualized CR 1,723 $363,158 

Changes to Base:

Maintaining Current Levels (MCLs): - $6,971 

Pay-Raise - $3,027 

Pay Annualization - $1,109 

Non-Pay - $2,835 

Non-Recurring Costs - ($14,890)

DATA Act - ($10,780)

Rent Savings - ($4,110)

Efficiency Savings (30) ($1,935)

Program Efficiencies (30) ($1,935)

Subtotal Changes to Base (30) (9,854)

Total FY 2018 Base 1,693 $353,304 

Program Changes:

Program Decreases (13) ($22,467)

Accounting and Reporting - ($3,066)

Collections - ($2,788)

Payments - ($2,603)

Retail Securities Services - ($1,600)

Support Services - ($8,323)

Streamlining Staff / Other Efficiencies (13) ($4,087)

Subtotal Program Changes (13) (22,467)

Total FY 2018 Request 1,680 330,837 

43
FY 2018 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$3,027,000 / +0 FTE

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$1,109,000 / +0 FTE

Funds are requested for annualization of the 

January 2017 pay-raise.

Non-Pay +$2,835,000 / +0 FTE 

Funds are requested for inflationary 

adjustments to non-labor costs such as travel, 

contracts, rent, supplies, and equipment. 

Non-recurring Costs and Efficiency 

Savings 

DATA Act -$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. 

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

Anticipated savings from programmatic and 

FTE requirements to align with operating 

levels.

Program Decreases 

Accounting and Reporting -$3,066,000 / +0 

FTE 

Delay the remediation of non-Department of 

Defense material weaknesses related to the 

Financial Report of the U.S. Government and 

the implementation of critical updates to 

systems.

Collections -$2,788,000 / +0 FTE 

Reductions to contractor support and security 

assessments associated with the expansion of 

electronic collections and settlement activities.

Payments -$2,603,000 / +0 FTE 

System modernization efforts related to 

improved customer agency support and the 

ability to decommission costly antiquated 

legacy systems will be delayed. 

Retail Securities Services -$1,600,000 / +0 

FTE 

Lower the service level to retail securities 

customers by increasing inquiry response time. 

Support Services -$8,323,000 / +0 FTE 

Cancel plans to elevate the physical security 

threshold and plans to increase security 

measures in several facilities, resulting in the 

acceptance of a moderate level of risk while 

still maintaining compliance with current 

General Services Administration (GSA) and 

Department of Homeland Security (DHS) 

Federal Protective Service (FPS) requirements. 

Additionally, Fiscal Service will be unable to 

implement planned space efficiencies designed 

to maximize the bureau’s use of space within 

its D.C. facility.

Streamlining Staff and Other Efficiencies -

$4,087,000 / -13 FTE 

Anticipated savings as a result of streamlining 

staff and realizing any associated efficiencies. 

Explanation of Budget Activities

Accounting and Reporting ($109,379,000 

from direct appropriations, $27,399,000 

from reimbursable resources)

The Accounting and Reporting activity 

consists of three programs: Government 

Agency Investment Services, Governmentwide Accounting and Reporting, and Summary 

Debt Accounting. 

44
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 (GWA) 

program produces timely and accurate 

financial information that contributes to the 

improved quality of financial decisions made 

by operating and overseeing the government’s 

Central Accounting Reporting System and 

implementing the data transparency 

requirements included in the DATA Act. 

Fiscal Service collects, analyzes, and publishes 

government-wide financial information made 

available to both the public and private sectors 

to provide transparency on the government’s 

financial status. GWA publications include 

the Daily Treasury Statement, the Monthly 

Treasury Statement, the Treasury Bulletin, the 

Combined Statement of the United States 

Government, and the Financial Report of the 

United States Government (FR). 

The Summary Debt Accounting (SDA) 

program reports daily on the balances and 

composition of the public debt, publishes the 

Monthly Statement of the Public Debt, and 

issues the annual, audited Schedules of Federal 

Debt (Schedules). The Schedules report on the 

single largest liability in Treasury’s Agency 

Financial Report and received an unmodified 

opinion for each of the past 19 years. 

Collections ($33,951,000 from direct 

appropriations, and $10,033,000 from 

reimbursable resources) 

The Collections program supports 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, 

customs duties, loan repayments, fines, and 

proceeds from leases. In addition, the Fiscal 

Service establishes and implements collection 

policies, regulations, standards, and 

procedures for the Federal Government. 

Payments ($108,517,000 from direct 

appropriations, and $119,408,000 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 

(EFT). 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 ($65,712,000 

from direct appropriations, and 

$17,515,000 from reimbursable resources) 

Retail Securities Services (RSS) program 

offers simple, safe, and affordable Treasury 

investment choices that enable Americans to 

invest and save for their future. The RSS 

45
program continues to examine the saving and 

investing needs of customers by researching 

new Treasury retail securities and services that 

will promote savings and appeal to the 

American public. 

Wholesale Securities Services ($13,278,000 

from direct appropriations, and $3,404,000 

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

Fiscal Service has no legislative proposals. 

Fiscal Service Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Governmentwide 

Accounting and 

Reporting

Percentage of GovernmentWide Accounting Reports 

Issued Timely

100.0 99.5 100.0 100.0 100.0

Collections

Percentage of Total Federal 

Government Receipts Settled 

Electronically (in dollars)

98.0 98.0 98.2 98.0 98.0

Payments

Percentage of Treasury 

Payments and Associated 

Information Made 

Electronically

94.4 94.68 94.9 94.9 95.2

Retail Securities 

Services

Cost Per Customer Assisted 

Transaction ($) N/A N/A N/A N/A B N/A

Retail Securities 

Services

Cost Per Electronic 

Transaction ($) N/A N/A N/A N/A B N/A

Wholesale 

Securities 

Services

Percent of Auction Results 

Released Accurately 99.3 97.0 100.0 100.0 100.0

Debt Collection

Amount of Delinquent Debt 

Collected Through All 

Available Tools ($ billions)

6.91 7.28 N/A 7.32 7.54

Key: DISC - Discontinued, B - Baseline

Description of Performance

Accounting and Reporting: The Government 

Agency Investment Services (GAIS) program 

strives to provide high-quality customer 

service, reliable transaction processing, and 

accurate and timely payment distribution. To 

aid in measuring performance, the 

organization conducted an annual customer 

survey with the intent to increase the 

percentage of customers rating GAIS as 

"Excellent." Fiscal Service streamlined the 

customer service surveys by integrating all 

individual surveys into a single annual survey. 

A new efficiency measure to ensure timely and 

accurate reporting of investment and 

borrowing activity is now used to measure the 

success of the GAIS program. The FY 2017 

and FY 2018 reporting targets for the new 

measure are 98 percent. In FY 2016, Fiscal 

Service established and met a target of 100

percent for the Percentage of Governmentwide Accounting Reports, which include the 

46
Daily Treasury Statement (DTS), Monthly 

Treasury Statement (MTS), and consolidated 

Financial Report, issued on time measure for 

FY 2016. Fiscal Service continues to achieve 

its targets by maintaining the established 

process of validating and reconciling data with 

reporting sources such as FPAs and various 

electronic deposit and payment applications. 

The bureau will continue modernization 

efforts to ensure the timeliness of these reports 

and anticipates it will continue to achieve the 

100 percent target for FY 2017 and FY 2018. 

In FY 2017, SDA eliminated unnecessary 

and/or duplicative business processes and 

replaced them with a new measure, 

Percentage of Summary Debt Accounting 

reports submitted timely, with a target of 100 

percent. 

Collections: The measure, Percentage of 

Total Federal Government Receipts Settled 

Electronically, reflects the dollar value of 

collections received (settled) electronically. In 

FY 2016, Fiscal Service’s commitment to 

agency outreach efforts resulted in 98.2 

percent of all Federal Government receipts 

settled electronically, exceeding the 98 percent

target. Fiscal Service will continue agency 

outreach and offer new products, such as 

mobile applications, online bill presentment, 

and expand the use of digital wallets to further 

demonstrate the cost efficiency realized 

through the use of electronic transactions. 

Fiscal Service expects to maintain an annual 

electronic collections rate of at least 98 percent

through FY 2018. 

Payments: The measure, Percentage of 

Treasury Payments and Associated 

Information Made Electronically, supports 

efforts to reform and modernize the federal 

financial management systems. Due to the 

continued success of the Go Direct® and 

Direct Express® programs and 

implementation of the All Electronic Treasury 

priority, Fiscal Service issued 98.1 percent of 

its benefits payments and 94.9 percent of its 

total payments via EFT in FY 2016. Fiscal 

Service expects to achieve its targets in 

FY 2017 and FY 2018, by continuing to 

expand electronic conversion efforts to 

additional benefits agencies and payment types 

such as vendor miscellaneous payments and 

federal tax refunds.

Retail Securities Services: Fiscal Service 

created new baseline performance measures in 

FY 2017 to support the bureau’s goal to serve 

as a catalyst for effective government through 

initiative and innovation. The Cost per 

Electronic Transaction demonstrates the 

efficiency of investor self-service for all retail 

securities currently offered. Customers are 

able to conduct several transactions 

independently of customer service 

representatives, including creating online 

accounts to purchase and hold securities, 

updating account information, purchasing and 

redeeming securities, etc. 

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 2016, Fiscal Service released 

100 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. 

Debt Collection: In FY 2016, the Fiscal 

Service collected $7.41 billion in delinquent 

debt. The goal for FY 2017 and FY 2018 is to 

collect $7.54 billion and $7.57 billion, 

respectively, in delinquent debt by expanding 

the use of the administrative wage garnishment 

collection tool, enhancing the use of analytics. 

In FY 2019, Fiscal Service will propose 

legislative changes such as authorizing 

47
Treasury to offset federal income tax refunds 

to collect delinquent state tax obligations 

regardless of where the debtor resides.

48
Internal Revenue Service

Program Summary by Budget Activity

 

Dollars in Thousands

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Enacted1 Annualized 

CR2 Request $ Change % Change 

Taxpayer Services $2,333,376 $2,328,940 $2,212,311 ($116,629) -5.01%

Pre-filing Taxpayer Assistance and Education 620,338 625,829 600,717 (25,112) -4.01%

Filing and Account Services 1,713,038 1,703,111 1,611,594 (91,517) -5.37%

Enforcement $4,714,936 $4,855,688 $4,706,500 ($149,188) -3.07%

Investigations 596,417 624,462 606,747 (17,715) -2.84%

Exam and Collections 3,981,257 4,083,908 3,967,808 (116,100) -2.84%

Regulatory 137,262 147,318 131,945 (15,373) -10.44%

Operations Support $3,896,688 $3,739,565 $3,946,189 $206,624 5.53%

Infrastructure 848,191 861,229 860,643 (586) -0.07%

Shared Services and Support 1,110,811 1,014,139 1,011,411 (2,728) -0.27%

Information Services 1,937,686 1,864,197 2,074,135 209,938 11.26%

Business Systems Modernization $290,000 $289,449 $110,000 ($179,449) -62.00%

Subtotal Internal Revenue Service $11,235,000 $11,213,642 $10,975,000 ($238,642) -2.13%

Reimbursables 104,358 116,286 122,099 5,813 5.00%

Offsetting Collections - Non Reimbursables 19,212 28,134 29,541 1,407 5.00%

User Fees 343,642 503,076 525,650 22,574 4.49%

Recovery from Prior Years 27,751 4,773 

- (4,773) -100.00%

Unobligated Balances from Prior Years 451,869 374,465 268,875 (105,590) -28.20%

Transfers In/Out3 126 

-

 

-

 

- N/A

Total Program Operating Level $12,181,958 $12,240,376 $11,921,165 ($319,211) -2.61%

Direct FTE 77,400 76,838 71,035 (5,803) -7.55%

Reimbursable FTE 640 684 711 27 3.95%

Offsetting Collections - Non Reimbursables 

-

 

-

 

-

 

- N/A

User Fee FTE 524 170 164 (6) -3.53%

Unobligated Balances from Prior Years -

 

-

 

-

 

- N/A

Resources from Other Accounts4 2 

-

 

-

 

- N/A

Total FTE 78,566 77,692 71,910 (5,782) -7.44%

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. FY 2016 Enacted includes the approved interappropriation transfer of $150 million from Enforcement to Operations Support. 2

A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared; therefore, the budget assumes this 

account is operating under the Further Continuing Appropriations Act, 2017 (P.L. 114–254). The amounts included reflect the annualized 

level provided by the continuing resolution. FY 2017 Annualized CR also includes $289.5 million in Section 113 Administrative Provision 

funding in the following amounts: $208.9 million in Taxpayer Services and $80.6 million in Operations Support.

3

Resources from Transfers In/Out include a FY 2016 transfers between IRS and the Office of National Drug Control Policy (ONDCP) High 

Intensity Drug Trafficking Area (HIDTA) Program (obligations $7000).

4

Resources from Other Accounts include Other Direct FTE funded by the Federal Highway Administration (2 FTE in FY 2016).

49
Summary

The IRS FY 2018 President’s Budget request 

is $10.975 billion, $239 million or 2.1 percent 

below the FY 2017 Annualized Continuing 

Resolution level. The IRS will continue to 

seek less costly ways of delivering taxpayer 

service and maintaining enforcement using 

technology, training, and internal efficiencies. 

The IRS collects revenue to fund the 

government and administers the nation’s tax 

laws. During FY 2016, the IRS collected more 

than $3.3 trillion in tax revenue, processed 

more than 244 million tax returns and other 

forms, and issued more than $426 billion in 

tax refunds and outlays, equating to 93 percent 

of total federal government receipts. The IRS

vision is to uphold the integrity of the nation’s 

tax system and preserve the public trust. Even 

with the increasing complexity of tax laws, 

changing business models, expanding use of 

electronic data and the related security risks, 

accelerating growth in international tax 

activities, and growing human capital 

challenges, the IRS remains focused on 

serving and helping the taxpayer understand 

and meet their tax responsibility with integrity 

and fairness in order to close the nation’s 

estimated $458 billion tax gap through 

voluntary compliance. 

The IRS remains committed to strengthening 

the public’s confidence by protecting the 

privacy rights of all taxpayers. While many of 

these rights are stated in law, the IRS 

recognizes that compliance with legal 

requirements alone is not enough. 

The Department of the Treasury is in the 

process of developing a new strategic plan for 

FYs 2018 – 2022. The IRS will publish its 

FY 2018 – FY 2022 strategic plan by June of 

2018. The IRS is soliciting extensive input on 

the plan from its employees as well as from 

external stakeholders. The plan will serve as a 

roadmap to guide IRS operations to meet the 

changing needs and expectations of the 

nation’s taxpayers and those in the tax 

community who serve them. 

In FY 2016, the IRS delivered a successful 

filing season and opened on time on 

January 19, 2016. Increased funding in

enabled the IRS to provide a higher level of 

service (LOS) during the filing season. During 

the summer and fall of 2015, the IRS revised

635 tax products, including the tax provisions 

associated with the Protecting Americans from 

Tax Hikes (PATH) Act of 2015, and 

implemented more than 400 changes. During 

the 2016 filing season, the IRS: 

• Received more than 29.9 million business 

returns, 3.2 percent more than in 2015; 

• Processed more than 17.5 million 

electronically-filed business returns, 

7.6 percent more than in 2015; and

• Issued more than 97 million refunds in 

total, with an average value of $2,711. 

During the FY 2017 filing season, the IRS 

received more than 135 million individual tax 

returns and issued over 97 million refunds 

totaling over $268 billion. Over 90 percent of 

individual returns received were filed 

electronically. Filing season LOS reached 79 

percent, its highest level since 2007. 

50
IRS FY 2018 Budget Highlights

Dollars in Thousands

FY 2018 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$122,449,000 / +0 FTE

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$44,877,000 / +0 FTE

Funds are requested for annualization of the 

January 2017 pay-raise.

Non-Pay +$52,709,000 / +0 FTE

Funds are requested for non-labor expenses 

such as travel, contracts, rent, supplies, and 

equipment. 

Resource Adjustments

Base Realignment for Support Services

$0 / 0 FTE

In recent years, the IRS has relied on transfers 

of resources from the Enforcement 

appropriations account to maintain core 

functions, information technology, and related 

support services. These transfers have enabled

the IRS to provide front-line employees with 

the tools, equipment, analytics, secure

facilities, and technology support necessary to

serve taxpayers and to maintain taxpayer 

customer service. In lieu of a similar transfer 

in FY 2018, the IRS proposes to permanently 

realign $145 million from Enforcement to 

Operations Support ($55 million) and 

Taxpayer Services ($90 million).

 

Adjustment for Administrative Provision

Section 113 $0 / 0 FTE

Section 113 of the Consolidated 

Appropriations Act, 2016 at the FY 2017 

annualized continuing resolution level 

provides $289.5 million to improve the 

customer service representative LOS rate, 

improve the identification and prevention of 

refund fraud and identity theft, and enhance 

cybersecurity to safeguard taxpayer data. This 

funding is assumed in the FY 2018 base and 

includes $208.9 million in Taxpayer Services 

(an increase of $32.1 million over FY 2016) 

Amount FTE Amount FTE Amount FTE Amount FTE Amount FTE

FY 2017 Annualized CR $2,328,940 28,455 $4,855,688 36,349 $3,739,565 11,441 $289,449 593 $11,213,642 76,838

Changes to Base:

Maintaining Current Levels (MCLs) $46,342 - $96,845 - $75,423 - $1,425 - $220,035 -

Pay Raise 31,005 - 65,828 - 24,573 - 1,043 - 122,449 -

Pay Annualization 11,363 - 24,126 - 9,006 - 382 - 44,877 -

Non-Pay Inflation Adjustment 3,974 - 6,891 - 41,844 - - - 52,709 -

Resource Adjustments $122,378 - ($149,936) - $27,558 - - - - - 

Base Realignment for Support Services 90,000 - (145,000) - 55,000 - - - - - 

Adjustments for Administrative Provision 

Section 113 32,378 - (4,936) - (27,442) - - - - - 

Subtotal Changes to Base $168,720 - ($53,091) - $102,981 - $1,425 - $220,035 -

Total FY 2018 Base $2,497,660 28,455 $4,802,597 36,349 $3,842,546 11,441 $290,874 593 $11,433,677 76,838

Program Changes:

Program Increase:

Realignment to Support Aging IT 

Infrastructure - - - - 179,449 266 - - 179,449 266

Program Decreases:

Actions to Achieve Workforce 

Management Goals (285,349) (4,063) (96,097) (1,300) (75,806) (342) (1,425) (9) (458,677) (5,714)

Realignment to Support Aging IT 

Infrastructure - - - - - - (179,449) (355) (179,449) (355)

Subtotal Program Changes ($285,349) (4,063) ($96,097) (1,300) $103,643 (76) ($180,874) (364) ($458,677) (5,803)

Total FY 2018 Request $2,212,311 24,392 $4,706,500 35,049 $3,946,189 11,365 $110,000 229 $10,975,000 71,035

Taxpayer Services Enforcement Operations Support Business Systems 

Modernization Total

Internal Revenue Service 

51
and $80.6 million in Operations Support (a 

decrease of $27.6 million) for customer 

service. 

Program Changes

Program Increases +$179,449,000 / +266 

FTE

The IRS will make progress towards 

decreasing the backlog of deferred software 

and hardware updates by realigning $179 

million and 266 FTE from the BSM 

appropriation to the Operations Support 

appropriation in FY 2018. 63 percent of IRS 

IT hardware systems are aged and out of 

warranty and 32 percent of software products 

are two or more releases behind the industry 

standard, with 15 percent more than four 

releases behind. Every year, another 

20 percent of hardware moves to a status of 

aged beyond the manufacturers recommended 

useful life, if not replaced. This aging 

infrastructure puts the American tax system at 

risk of failure. Such conditions introduce 

security risks, excessive system downtime, 

systems and hardware no longer supported by 

the vendor, and incompatibilities across 

systems and programs. 

Program Decreases 

Realignment to Support Aging IT 

Infrastructure -$179,449,000 / -355 FTE

An estimated $179 million will be realigned to 

the Operations Support appropriation to 

decrease the backlog of deferred software and 

hardware updates, which are a critical priority 

and must be prioritized before development 

and modernization of new systems. With the 

FY 2018 request, the IRS will pause the 

development of Enterprise Case Selection, 

Event Driven Architecture, and Modernized 

eFile. The IRS will continue development of 

Customer Account Data Engine 2, Return 

Review Program and Web Applications, 

supported by Architecture Integration and 

Management, Core Infrastructure. In addition, 

IRS will continue to explore alternative 

Enterprise Case Management solutions. 

Actions to Achieve Workforce Management 

Goals -$458,677,000 / -5,714 FTE

The IRS will realize reductions in Taxpayer 

Services, Enforcement, Operations Support, 

and Business Systems Modernization (BSM) 

by reducing costs and streamlining operations. 

The IRS will mitigate the effect of this 

reduction by allocating funding from user fees 

to critical performance areas. The IRS will 

reduce staffing, supply, and contractual cost in 

all four accounts by an estimated $220 million. 

Additionally, Taxpayer Services seasonal 

staffing costs will be reduced by an estimated 

by $239 million. The IRS will continue to 

provide service to taxpayers via a range of 

channels from the internet to telephones to 

face-to-face field assistance. The use and 

delivery of more online tools and other 

improved service channels, such as virtual tax 

assistance sites, will help the IRS operate in a 

cost effective manner.

Explanation of Budget Activities

Taxpayer Services

The FY 2018 President’s Budget request is 

$2,212,311,000 in direct appropriations, an 

estimated $38,497,000 from reimbursable 

programs, an estimated $67,600,000 from user 

fees, and an estimated $15,000,000 from 

unobligated balances from prior years for a 

total operating level of $2,333,408,000. This 

appropriation funds the following budget 

activities: 

 

Pre-filing Taxpayer Assistance & 

Education ($600,717,000 from direct 

appropriations, an estimated $15,000 from 

reimbursable resources) 

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 ($1,611,594,000 

from direct appropriations, an estimated 

$38,482,000 from reimbursable resources, 

52
and an estimated $67,600,000 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 2018 President’s Budget request is 

$4,706,500,000 in direct appropriations, an 

estimated $43,717,000 from reimbursable 

programs, an estimated $29,541,000 from 

offsetting collections – non-reimbursables, an 

estimated $16,150,000 from user fees, and an 

estimated $18,321,000 from unobligated 

balances from prior years for a total operating 

level of $4,814,229,000. This appropriation 

funds the following budget activities: 

Investigations ($606,747,000 from direct 

appropriations and an estimated 

$42,993,000 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 when

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 ($3,967,808,000 from 

direct appropriations and an estimated 

$502,000 from reimbursable resources) 

This budget activity funds programs that 

enforce the tax laws, 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 ($131,945,000 from direct 

appropriations, an estimated $222,000 from 

reimbursable resources, and an estimated 

$16,150,000 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 is 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 2018 President’s Budget request is 

$3,946,189,000 in direct appropriations, an 

estimated $39,885,000 from reimbursable 

programs, an estimated $441,900,000 from 

user fees, and an estimated $49,970,000 from 

unobligated balances from prior years for a 

total operating level of $4,477,944,000. This 

appropriation funds the following budget 

activities: 

Infrastructure ($860,643,000 from direct 

appropriations and an estimated $690,000 

from reimbursable resources) 

This budget activity funds administrative 

services related to space and housing, rent and 

53
space alterations, building services, 

maintenance, guard services, and non-IT 

equipment. 

Shared Services & Support ($1,011,411,000 

from direct appropriations, an estimated 

$17,520,000 from reimbursable resources, 

and an estimated $11,900,000 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 ($2,074,135,000 from 

direct appropriations, an estimated 

$21,675,000 from reimbursable resources, 

and an estimated $430,000,000 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 mainframes, servers, 

personal computers, networks, and a variety of 

management information systems.

Business Systems Modernization 

The FY 2018 President’s Budget request is 

$110,000,000 in direct appropriations and an 

estimated $185,584,000 from unobligated 

balances from prior years for a total operating 

level of $295,584,000. This appropriation 

funds the following budget activity: 

 

Business Systems Modernization 

($110,000,000 in direct appropriations) 

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 that enhance the IRS’s capability to 

detect, resolve, and prevent tax refund fraud 

and protect U.S. Treasury revenue, simplify 

the taxpayer’s online experience, provide 

secure digital communications, and add more 

interactive capabilities to existing web 

self-service products. 

Legislative Proposals

The IRS requests Streamlined Critical Pay 

(SCP) authority through September 30, 2021. 

This authority allowed the IRS to recruit and 

retain IT and other senior professionals and 

limited this authority to 40 positions. The 

authority to make new SCP appointments 

expired September 30, 2013. Currently there 

are seven senior employees under SCP 

appointments, down from a high of 30. If the 

SCP is not renewed, the IRS will face 

additional challenges recruiting and retaining 

top level talent as the remaining SCP term 

appointments expire, especially IT 

professionals who can help protect taxpayer 

data from cyberattacks and who can assist with 

modernizing 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.” 

54
IRS Performance Highlights 

Budget Activity Performance Measure FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018

Actual Actual Actual Target Target Target

Filing and 

Account Services

Customer Accuracy - 

Accounts (Phones) 96.2 95.5 96.1 94.0 95.0 95.0

Filing and 

Account Services

Customer Service 

Representative (CSR) 

Level of Service (%) 

64.4 38.1 53.4 47.0 64.0 39.0

Filing and 

Account Services

Percent of Individual 

Returns Processed 

Electronically (%) 

84.1 85.3 86.4 86.0 87.0 88.0

Exam and 

Collections

Automated Collection 

System

(ACS) Accuracy (%) 

95.2 95.3 95.4 95.0 95.0 95.0

Exam and 

Collections

Automated Underreporter 

(AUR)

Coverage (%) 

2.6 2.3 2.3 2.2 2.0 2.0

Exam and 

Collections

Examination Efficiency - 

Individual (Form 1040) 138 148 143 122 118 126

Description of Performance

In FY 2016, the IRS continued to provide 

quality service to taxpayers and enforce the 

law with integrity and fairness but was unable 

to maintain some performance levels due to 

resource constraints. Nevertheless, the IRS 

continued to deliver in key areas, including 

international, tax exempt, refund fraud, and 

identity theft. 

Taxpayer Services

Providing high quality service and helping 

taxpayers understand and meet their tax 

obligations remain priorities for the IRS. 

During FY 2016, the IRS collected more than 

$3.3 trillion in tax revenue, processed more 

than 244 million tax returns and other forms, 

and issued more than $426 billion in tax 

refunds. Other highlights include: 

• Achieved an 86.4 percent individual e-file 

rate and a 50 percent business e-file rate; 

• Delivered a telephone LOS of 53.4 

percent; 

• Answered more than 13.1 million calls, 

5.3 million more calls than in 2015; and

• Correctly answered 96.1 percent of 

account questions over the telephone. 

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. 

The IRS made steady progress on a number of 

efforts that will deliver service efficiently and 

effectively, such as: 

• Launching Finding Out How Much You 

Owe on IRS.gov, which provides taxpayers 

with straightforward balance inquiries in a 

secure, easy, and convenient way. In 

nearly four weeks after launch in late 2016, 

55
taxpayers checked their account balance 

nearly 54,000 times, and made more than 

6,700 tax payments, for more than 

$21 million, through Direct Pay; and 

• Releasing the 100th eBook for mobile 

devices in the ePub format. 

Enforcement

In FY 2016, the IRS collected more than 

$54.3 billion, for a total ROI of $5 to $1. 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 effect. 

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. 

In FY 2016, results for criminal investigation 

completions are 2.1 percent below the 

year-end target and reflect a 17.1 percent 

decrease compared to FY 2015. Overall 

performance in FY 2016 was affected by a 

significant decrease in the number of Special 

Agents in recent years and a focus on more 

complex tax cases, which take longer to 

complete, and a working inventory still in the 

judicial process. CI obtained

2,672 convictions. 

During the past year, the IRS maintained its 

international enforcement presence, continued 

actions to leverage the tax return preparer 

community, and continued prioritizing refund 

fraud prevention. The IRS stopped $4 billion 

in fraudulent refunds claimed by identity 

thieves on 787,000 tax returns through new 

screening criteria. In addition, the IRS worked 

with its Security Summit partners from state 

tax agencies and the broader tax community to 

add extra layers of security protection for the 

filing season. 

Business Systems Modernization

IRS modernization efforts continued in 

FY 2016. Protecting IRS systems and 

taxpayer data is essential for maintaining 

high-quality taxpayer service programs. In 

FY 2016, the IRS: 

• Deployed several CADE 2 Transition State 

2 projects for filing season 2016, which 

allowed a more effective way to record and 

retain taxpayer history, corrected 

automated failure to pay calculations for 

the adjusted refundable credits, and 

aggregated and provided taxpayer data to 

downstream systems across the IRS; and

• Deployed maintenance and enhancements 

for the Return Review Program in 

preparation for the 2016 filing season, 

which allowed for receipt of Forms W-2, 

Wage and Tax Statement, directly from 

reporting agents and other Form W-2 

issuers earlier in the filing season to verify 

income and reduce fraud and anomalies. 

Receiving the Form W-2 information 

earlier allowed the IRS to release good 

returns sooner in the fraud detection 

process, which reduced taxpayer burden. 

56
Department of the Treasury – Budget in Brief

Office of Financial Stability 

Program Summary 

Dollars in Billions 

Cumulative 

Obligated 

Cumulative 

Disbursed 

(as of 

4/30/17) 

Cumulative 

Outstanding 

(as of 

4/30/17) 

Total 

Cumulative 

Income (as 

of 4/30/17) 

Total 

Cash 

Back 

(as of 

4/30/17) 

Total 

Estimated 

Lifetime 

Costs (as 

of 11/30/16) 

 

Bank Support Programs 250 245 0 36 275 -24 

Credit Market Programs 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 25 0 33 ***

Total** $455 $437 $0 $49 $425 $32 

Additional AIG Common 

Shares Held by Treasury 0 0 0 18 18 -18 *

Total for Programs and 

Shares** $455 $437 $0 $66 $442 $15 

* 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. 

***Making Home Affordable (MHA) and Hardest Hit Fund (HHF) Estimated Lifetime Costs are as of 3/31/17. 

Administrative Account Summary 

Dollars in Thousands 

FY 2016 

Actual 

FY 2017 

Estimated 

FY 2018 

Estimated 

FY 17 – FY 18 

Change 

FY 17 – FY 18 

%Change 

TARP Administrative Account 133,759 106,976 83,080 -23,896 -22.34% 

Total Obligations $133,759 $106,976 $83,080 -$23,896 -22.34% 

 

FTE 66.5 52.5 42.5 -10 -19.05% 

Summary and Explanation of Programs 

A central part of the response to the 2008 

financial crisis was the implementation of the 

Troubled Asset Relief Program (TARP), 

which was established in the fall of 2008 under 

the Emergency Economic Stabilization Act of 

2008 (EESA) (P.L. 110-343) within the Office 

of Domestic Finance at the U.S. Department of 

the Treasury (Treasury). TARP was created to 

restore the liquidity and stability of the 

financial system and is administered by the 

Office of Financial Stability (OFS) established 

within Treasury. Since late 2010, OFS has 

focused on carefully winding down TARP’s 

investment programs, recovering the OFS’s 

outstanding investments, and continuing to 

implement the various housing programs 

under TARP. OFS has made significant 

progress in winding down TARP investment 

programs and continues to administer housing 

programs to help struggling families avoid 

foreclosure. As of April 30, 2017, OFS has 

recovered more than 97 percent of the $436.9 

billion in total program funds disbursed under 

TARP, as well as an additional $17.6 billion 

from Treasury’s equity in AIG. When all of 

Treasury’s AIG investments are included, the 

57
Department of the Treasury – Budget in Brief

amount recovered is greater than the funds 

disbursed by $5.5 billion. 

In FY 2018, OFS plans to obligate $83 million 

and use 42.5 FTEs, a decrease of almost $24 

million and 10 FTEs from the updated FY 

2017 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 wind-down of TARP. 

Legislative Proposals 

OFS has no legislative proposals for FY 2018. 

Description of Performance 

Bank Support Programs 

Capital Purchase Program (CPP) 

OFS created CPP, its largest program, in 

October 2008. OFS provided a total of $204.9 

billion in capital to 707 institutions in 48 

states. During FY 2016, OFS continued to 

wind down remaining CPP investments 

through repayments by those institutions that 

were able to do so and restructuring 

investments in limited cases. As of April 30, 

2017, CPP has generated $226.7 billion in 

recoveries for taxpayers with nine institutions 

remaining in the program for a total of $191 

million in investments outstanding.

Community Development Capital Initiative 

(CDCI) 

OFS created CDCI on February 3, 2010, to 

provide investments of capital to certified 

Community Development Financial 

Institutions banks, thrifts, and credit unions. 

The initial dividend or interest rate was two 

percent. To encourage repayment, the 

dividend rate increases to nine percent after 

eight years. On August 1, 2016, Treasury, as 

part of its ongoing effort to wind down TARP, 

offered participating CDCI institutions an 

opportunity to repurchase their outstanding 

securities owned by Treasury at fair value 

ahead of the dividend rate step-ups set to take 

place in 2018. OFS invested $570 million in 

84 CDFIs, of which 28 institutions converted 

$363 million (including warrants) from CPP to 

CDCI. As of April 30, 2017, CDCI has 

generated $508 million in recoveries for 

taxpayers with 27 institutions remaining in the 

program for a total of $98 million in 

investments outstanding. 

Housing Programs 

OFS established several TARP housing 

programs, assisting millions of homeowners 

and introducing reforms for the mortgage 

servicing industry to facilitate mortgage 

modifications. 

Making Home Affordable Program (MHA) 

In 2009, OFS launched MHA to help 

homeowners prevent avoidable foreclosures 

and strengthen 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. 

In accordance with provisions of the 

Consolidated Appropriations Act, 2016 (the 

Act) (P.L. 114-113), MHA terminated on 

December 31, 2016, except with respect to 

certain applications made before such date. As 

of April 30, 2017, OFS had disbursed $17.0 

billion out of a possible $27.8 billion under 

MHA.

Housing Finance Agency (HFA) Hardest Hit 

(HHF) Fund 

HHF was established in 2010 to provide 

targeted aid to homeowners in states hit 

hardest by the economic and housing market 

downturn by providing funding to state HFAs. 

The $7.6 billion initiative encompassed 18 

states and the District of Columbia. In 

December 2015, the Act granted Treasury 

authority to make an additional $2.0 billion in 

commitments through the HHF. As of April 

30, 2017, OFS had disbursed $8.1 billion out 

58
Department of the Treasury – Budget in Brief

of a possible $9.6 billion under the HFA 

Hardest Hit Fund. 

Federal Housing Administration (FHA) - 

Short Refinance Program 

OFS continues to support the FHA Short 

Refinance Program, designed to assist 

borrowers with negative equity. The program 

has seen limited participation. As such, OFS 

has reduced the LOC facility supporting this 

program from $8.0 billion to $100 million. On 

December 31, 2016, the FHA Short Refinance 

Program ended; therefore, OFS plans to lower 

the LOC in FY 2017 to the total amount of 

OFS coverage for the loans in the program. As 

of November 30, 2016, the revised lifetime 

cost estimate for the program was $18 million 

for outstanding refinanced loans. 

Other Programs 

Automotive Industry Financing Program 

(AIFP) 

OFS fully wound down AIFP during FY 2015, 

selling its remaining stake in Ally Financial. 

OFS disbursed $79.7 billion in loans and 

equity investments to the auto industry through 

the AIFP. As of April 30, 2017 OFS has 

collected $70.5 billion through sales, 

repayments, dividends, interest, recoveries, 

and other income. Recoveries from the 

bankruptcy liquidation of Old Chrysler and 

Old GM remain possible. 

All other TARP programs closed prior to 

FY 2016, including the Targeted Investment 

Program, Asset Guarantee Program, PublicPrivate Investment Program, Term AssetBacked Securities Loan Facility, Small 

Business Administration 7(a) Securities 

Purchase Program, and American International 

Group, Inc. Investment Program. 

For more details, please see the Budgetary 

Effects of the Troubled Asset Relief Program 

chapter in the Analytical Perspectives volume 

of the 2018 Budget.

59
Department of the Treasury – Budget in Brief 

60
Office of Financial Research

Program Summary by Budget Activity

Dollars in Thousands

Summary

The Office of Financial Research (OFR or 

Office) resides within the Department of the 

Treasury. In carrying out its mission, the OFR 

seeks to achieve its vision of a transparent, 

efficient, and stable financial system. The 

OFR’s work contributes to making informed 

and comprehensive policies and taking actions 

that will strengthen the financial system. The 

Office monitors the financial environment for 

the emergence of new vulnerabilities and 

migration of financial activity that could 

threaten financial stability.

To align with the Administration’s initiative to 

improve government efficiency and 

effectiveness, the OFR is implementing a 

staffing streamlining effort to ensure 

appropriate levels for maximum efficiency.

OFR FY 2018 Budget Highlights

Dollars in Thousands

Office of Financial Research FTE Amount

FY 2017 Estimated 223 $101,407 

Changes to Base:

Program Changes 

Program Decreases (84) ($25,351) 

Personnel (84) ($17,824) 

Non-Personnel ($7,527) 

FY 2018 Base 139 $76,056 

FY 2018 Estimated 139 $76,056 

Explanation of Budget Activities

Data Center ($16,865,000 from Assessments) 

As required by statute, the Data Center, on 

behalf of the Council, collects, validates, and 

maintains all data necessary to carry out the 

Center’s duties. Under this mandate, the Data 

Center works to increase efficiency in data 

acquisition and management; reduce redundant 

reporting requirements across the regulatory 

system (including through more effective datasharing arrangements); and to ensure the 

security of sensitive data.

Technology Center ($27,281,000 from 

Assessments) 

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

work with complex, sensitive financial data 

and the Office’s research and analysis 

activities. In addition, the Technology Center 

is responsible for safeguarding data and 

systems, and managing all IT capabilities 

within the OFR. These responsibilities include 

computing and analytic platforms, software, 

telecommunications, client applications, and 

office automation solutions. 

Research and Analysis ($11,573,000 from 

Assessments) 

Through its Working Paper Series, Brief 

Series, Staff Discussion Papers Series, and 

OFR annual reports, the OFR publishes results 

of its analysis to be transparent in its 

FY 2016 FY 2017 FY 2018

Budget Activity Actual Estimated Estimated $ Change % Change

Column1 Column3 Column32 Column4 Column5 Column6

Data Center $16,477 $19,157 $16,865 ($2,292) -11.96%

Technology Center $32,132 $35,562 $27,281 ($8,281) -23.29%

Research and Analysis Center $14,239 $17,719 $11,573 ($6,146) -34.69%

Operations and Support Services $32,026 $28,969 $20,337 ($8,632) -29.80%

Total Cost of Operations $94,874 $101,407 $76,056 ($25,351) -25.00%

FTE 208 223 139 (84) -37.67%

FY 2017 TO FY 2018

61
operations and promote public understanding 

of threats to financial stability. In addition, the 

OFR’s Research Seminar Series allows the 

OFR’s research staff opportunities to 

collaborate with external experts and seek 

feedback from them. The OFR is establishing 

forums and networks to bring together experts 

from within and outside the regulatory system. 

Operations and Support Services

($20,337,000 from Assessments) 

This category contains the activities of the 

Director’s Office, Operations, External 

Affairs, and Chief Counsel. The category 

includes support provided through a shared 

services model and reimbursable arrangements 

with Treasury’s Departmental Offices; 

personnel benefits services from the Office of 

the Comptroller of the Currency; and services 

from Treasury’s Bureau of the Fiscal Service 

Administrative Resource Center, including 

services related to human resources, 

procurement, travel, and financial 

management. 

OFR Performance by Budget Activity

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 –

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Data Center

Number of LEIs Issued 

Cumulatively in the United States 

and Internationally

N/A 395,861 464,412 I I N/A

Data Center

Number of Times That Financial

Data Standards Related are 

Incorporated in Rules and 

Regulations

N/A 2 9 I I N/A

Research and 

Analysis Center

Number of Research and Analysis 

Publications Made Public Year-toDate15 34 24 28 35

Research and 

Analysis Center

Number of monitor editions, policy 

analysis, and dashboards produced 

for monitoring threats to financial 

stability

N/A 21 34 12 34

Key: I – Indicator

Description of Performance

The OFR assesses its performance measures 

annually and revises them, if appropriate, to 

ensure their continued usefulness for 

management decision-making and improved 

results. 

62
Financial Stability Oversight Council

Program Summary by Budget Activity

Dollars in Thousands

Summary

The Financial Stability Oversight Council 

(Council) is chaired by the Secretary of the 

Treasury and consists of 10 voting members 

and five nonvoting members who serve in an 

advisory capacity. The Council brings 

together the expertise of the federal financial 

regulators, an insurance expert appointed by 

the President, and state regulators.

The Council’s three statutory purposes are: 

1. to identify risks to the financial stability of 

the United States that could arise from the 

material financial distress or failure, or 

ongoing activities, of large, interconnected 

bank holding companies or nonbank 

financial companies, or that could arise 

outside the financial services marketplace;

2. to promote market discipline, by 

eliminating expectations on the part of 

shareholders, creditors, and 

counterparties of such companies that 

the Government will shield them from

losses in the event of failure; and 

3. to respond to emerging threats to the 

stability of the U.S. financial system.

Over the last year, the Council continued to 

identify and monitor potential risks to U.S. 

financial stability; fulfilled its statutory 

requirements, including transmission of its 

sixth annual report to Congress; and served as 

a forum for discussion and coordination 

among member agencies. 

The Council continues to evaluate its nonbank 

financial company determinations and 

financial market utility designations. In 

FY 2016, the Council rescinded one nonbank 

financial company determination.

Over the next year, the Council will continue 

to 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 information sharing and interagency 

coordination with respect to various regulatory 

initiatives.

By law, the Council is required to convene no 

less than quarterly, but the Council has 

convened on a more frequent basis to share 

information on key financial developments, 

coordinate regulatory implementation, and 

monitor progress on recommendations from 

the Council’s annual reports. In FY 2016, the 

Council convened 10 times. The Council will

remain focused on identifying near-term 

threats and addressing structural vulnerabilities 

in the financial system. Transparency into

Council work has routinely been provided 

through an annual report to Congress, periodic 

Congressional testimony on Council activities 

and emerging threats to financial stability, and 

regular communications to the public about 

Council activities and decisions. 

FY 2016 FY 2017 FY 2018

Budget Activity Actual Estimated Estimated $ Change % Change

Column1 Column3 Column32 Column4 Column5 Column6

FSOC $7,157 $8,156 $7,748 ($408) -5.00%

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

Total Cost of Operations $13,728 $13,282 $12,247 ($1,035) -7.79%

FTE 22 23 21 (2) -8.70%

FY 2017 TO FY 2018

63
FSOC FY 2018 Budget Highlights

To align with the Administration’s initiative to 

improve government efficiency and 

effectiveness, the FSOC is implementing a 

staffing streamlining effort to ensure 

appropriate levels for maximum efficiency.

Explanation of Budget Activities

Financial Stability Oversight Council

($7,748,000 from Assessments) 

The Council has a statutory duty to facilitate 

information sharing and coordination among 

member agencies. The Council will continue 

to monitor the financial system for emerging 

risks and facilitate interagency cooperation to 

identify and analyze emerging threats. The 

Council is not an office or bureau of the 

Department of the Treasury. However, by 

law, the Council’s expenses (and, indirectly, 

Federal Deposit Insurance Corporation (FDIC) 

reimbursements) are considered expenses of 

the Office of Financial Research, an office 

within the Department of the Treasury.

FDIC Reimbursement ($4,499,000 from 

Assessments) 

By law, the Council’s expenses also include 

reimbursement of certain reasonable 

implementation expenses incurred by the 

FDIC in implementing Orderly Liquidation 

Authority. The FDIC must periodically 

submit requests for reimbursement to the 

Chairperson of the Council, who shall arrange 

for prompt reimbursement to the FDIC. FDIC 

expenses are for rule writing and resolution 

planning. 

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. 

Financial Stability Oversight Council FTE Amount

FY 2017 Estimated 23 $13,282

Changes to Base:

Total FY 2018 Base 23 $13,282

Program Changes:

Program Decreases (2) ($1,035)

Personeel (2) ($222)

Non-Personeel ($186)

FDIC Reimbursement ($627)

Total FY 2018 Estimated 21 12,247

Dollars in Thousands

64
Treasury Forfeiture Fund

Program Summary by Budget Activity

Dollars in Thousands

 FY 2016 FY 2017 FY 2018

Budget Activity Actual Estimated3 Estimated $ Change % Change

Mandatory Obligations 1 $451,581 $621,232 $450,000 ($171,232) -27.56%

Secretary's Enforcement Fund $57,165 $7,075 $30,000 $22,925 324.03%

Super Surplus Obligations 2 $0 $114,634 $100,000 ($14,634) -12.77%

Total Cost of Operations $508,746 $742,941 $580,000 ($162,941) -21.93%

Rescissions/Cancellations4 ($4,839,128) ($969,783) ($876,000) $93,783 -9.67%

Contingent Liabilities $485,421 $352,054 $300,000 ($52,054) -14.79%

Total FTE 25 25 25 0.00%

FY 2017 TO FY 2018

1

The Treasury Forfeiture Fund is staffed by Departmental Offices employees and positions are funded via reimbursable agreement. 

The FTE are shown here for clarity, but are also reflected in the Departmental Offices chapter in the reimbursable FTE total. 2

 Treasury will revise the FY 2017 Super Surplus plan based on the Consolidated Appropriations Act, 2017, and resubmit the FY 

2017 Super Surplus plan to Congress. For FY 2018, Treasury will submit a spending plan to Congress for the FY 2018 Super 

Surplus amount.

3

A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared; therefore, the budget assumes 

this account is operating under the Further Continuing Appropriations Act, 2017 (P.L. 114–254). The amounts included for 2017 

reflect the annualized level provided by the continuing resolution.

4 FY 2017 rescissions/cancellations include sequestration.

Summary

The Treasury Executive Office for Asset 

Forfeiture (TEOAF) administers the Treasury 

Forfeiture Fund. The Treasury Forfeiture Fund 

(the Fund) is the receipt account for deposit of 

non-tax forfeitures made pursuant to laws 

enforced or administered by participating 

Treasury and Department of Homeland 

Security agencies. The Fund was established 

in 1992 as the successor to what was then the 

Customs Forfeiture Fund. 

The enabling legislation for the Treasury 

Forfeiture Fund (Title 31 U.S.C. 9705) defines 

the purposes for which Treasury forfeiture 

revenue may be used. 

Explanation of Budget Activities

Mandatory Obligations ($450,000,000 from 

revenue/offsetting collections)

Mandatory Obligations are incurred to meet 

the operating costs of the Fund, including 

expenses of storing and maintaining seized and 

forfeited assets, valid liens and mortgages, 

investigative expenses incurred in pursuing a 

seizure, information and inventory systems, 

remissions, victim restoration, and certain 

costs of local police agencies incurred in joint 

law enforcement operations. Following 

seizure, equitable shares may be paid to state 

and local law enforcement agencies that 

contributed to the seizure activity at a level 

proportionate to their involvement. 

Secretary's Enforcement Fund 

($30,000,000 from revenue/offsetting 

collections) 

Secretary's Enforcement Fund represents 

revenue from equitable shares received from 

Department of Justice (DOJ) or U.S. Postal 

Service (USPS) forfeitures. These shares are 

proportional to Treasury’s participation in the 

overall investigative effort that led to a DOJ or 

USPS forfeiture. SEF revenue is available for 

federal law enforcement related purposes of 

any law enforcement organization 

participating in the Fund. 

65
Super Surplus Obligations ($100,000,000 

from revenue/offsetting collections) 

Super Surplus authority, established by 

Congress in 31 U.S.C. § 9705 (g)(4)(B), 

allows TEOAF to fund priority law 

enforcement initiatives with remaining 

unobligated balances at the close of the fiscal 

year after an amount is reserved for the next 

fiscal year’s operations. This balance can be 

used for any federal law enforcement purpose. 

Contingent Liabilities ($300,000 from 

revenue/offsetting collections) 

Contingent liabilities represent the known 

future remission, refund, and mitigation 

payments. 

Legislative Proposals

P.L. 114-113 permanently rescinded 

$3,800,000,000 of the $3,838,800,000 

forfeited in United States v. BNPP, No.14 Cr. 

460 (S.D.N.Y.). Treasury is unable to obligate 

the remaining $38,800,000 due to a provision 

in section 405, Title IV limiting the use of 

these funds. Treasury proposes to return the 

remaining $38,800,000 to the General Fund. 

Return of these funds to Treasury is being 

done solely to remove them from the Fund’s 

account, but will not count as savings because 

the funds are already precluded from 

obligation. 

TEOAF Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Treasury

Forfeiture Fund

Percent of Forfeited Cash 

Proceeds Resulting from HighImpact Cases

86.73 98.25 89.09 80.0 80.0

Description of Performance

($580,000,000 in obligations from 

revenue/offsetting collections): 

The TEOAF continues to measure the 

performance of the participating law 

enforcement bureaus through the use of the 

performance measure: percent of forfeited 

cash proceeds resulting from high impact 

cases. This measures the percentage of 

forfeited cash proceeds resulting from high 

impact cases, which are cases resulting in a 

cash forfeiture deposit equal to or greater than 

$100,000. 

Focusing on strategic cases and investigations 

that result in high impact forfeitures will do 

the greatest damage to criminal organizations 

while accomplishing the ultimate objective, 

which is to disrupt and dismantle criminal 

activity. Member law enforcement bureaus 

participating in the Fund have met or exceeded 

the performance target since FY 2013. The 

Fund maintains a target of 80 percent because 

some cases may be important to pursue, even 

if they are not high-impact cases and result in 

deposits of less than $100,000. 

The member bureaus exceeded the target 80 

percent by 9.09 percent for FY 2016. For 

FY 2017 and FY 2018, the target will remain 

at 80 percent. 

66
Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in Thousands

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $648,035 $806,355 $839,484 $33,149 4.11%

Total Cost of Operations $648,035 $806,355 $839,484 $33,149 4.11%

FTE 1,818 1,842 1,842 0 NA

Summary

The mission of the Bureau of Engraving and 

Printing (BEP) is to develop and produce 

United States currency notes, trusted 

worldwide. 

The BEP’s FY 2018 request funds the 

following projects: 

Banknote Design and Development: In 2018, 

BEP will continue working with the 

government’s Advanced Counterfeit Deterrent 

Steering Committee to research and develop 

future currency designs for the next family of 

redesigned notes that will enhance and ensure 

the security and integrity of U.S. currency. 

Meaningful Access: Work continues in 

FY 2018 on the goal of redesigning currency 

to better assist domestic and international 

users, including the blind and visually 

impaired, with denominating U.S. currency 

notes. 

Retooling: BEP is in the process of a multiyear effort to retool BEP’s manufacturing 

processes with state-of–the-art intaglio 

printing presses, electronic inspection systems, 

and finishing equipment. In order to ensure 

that the BEP will meet the yearly currency 

order, the Federal Reserve Board (FRB) and 

BEP developed and established short, medium, 

and long-term strategic equipment replacement 

plan for the U.S. Currency Program. 

BEP Workforce: Throughout 2018, the 

Bureau will continue to develop, execute, and 

communicate the results of Employee 

Engagement Plans and the Federal Employee 

Viewpoint Survey annual results. In addition 

to implementing BEP Human Capital Plan 

initiatives, efforts will continue to fill gaps in 

needed Science, Technology, Engineering and 

Mathematics skill sets to support our Currency 

Quality Assurance efforts in addition to adding 

resources in technology development and 

feature testing areas. 

Currency Quality Assurance (CQA) 

Program: BEP has partnered with the FRB to 

reinvent its quality management program 

based on the best practices of leading 

manufacturers. The BEP, in collaboration 

with its stakeholders, developed a robust CQA 

program that began in 2014 and will continue 

to mature in 2018. This reinvention has 

moved BEP to a proactive approach of 

building quality into production processes. 

New International Organization for 

Standardization (ISO) requirements: ISO 

has published updated standards that the BEP 

must adhere to in order to maintain 

certification. In order to pass recertification, 

BEP must align its Quality Management 

System to the ISO 9001:2015 standard and its 

Environment Management System to the ISO 

14001:2015 standard no later than September 

2018. 

Replacement DC Production Facility 

(DCF): BEP’s current Washington, DC 

facility has an aging and outdated 

infrastructure with multiple floors and wings, 

which drives up costs and adversely impacts 

quality. For 2018, BEP is requesting statutory 

authority to purchase land and construct a new

more efficient currency production facility in 

the National Capital Region. The FRB, which 

67
would pay for the construction of a new 

National Capital Region production facility, 

supports this project. Alternately, BEP must 

begin the renovation of the existing Main and 

Annex Buildings to ensure its ability to meet 

its mission. Renovation will cost $1.8 billion, 

approximately $700 million more than the 

purchase and construction of a new facility

and with none of the projected efficiencies (28 

percent less space and a $38 million reduction 

in annual operating costs). 

BEP FY 2018 Budget Highlights

Dollars in Thousands

Bureau Name FTE Materials Operating & 

Capital Total

FY 2017 Estimated 1,842 $300,000 $506,335 $806,335

Changes to Base:

Maintaining Current Levels (MCLs): $10,823 $10,823

Pay-Raise 3,528 3,528

Pay Annualization 1,293 1,293

Non-Pay 6,002 6,002

Subtotal Changes to Base $10,823 $10,823

Total FY 2018 Base 1,842 $300,000 $517,158 $817,158

Program Changes:

Program Decreases: ($10,851) ($30,823) ($41,674)

 Production Efficiency (10,823) (10,823)

 Currency Readers (20,000) (20,000)

 Materials (10,851) (10,851)

 Program Increases $0 $64,000 $64,000

 DCF Production Facility Replacement 64,000 64,000

Total FY 2018 Estimated 1,842 $289,149 $550,335 $839,484

FY 2018 Budget Adjustments

Adjustment to Estimates

Maintaining Current Level (MCLs)

Pay-Raise +$3,528,000

Funds are required for the proposed January 

2018 pay-raise.

Pay Annualization +$1,293,000 / +0 FTE

Funds are required for the annualization of the 

2017 pay-raise. 

Non-Pay +$6,002,000

Funds are required for inflation adjustments in 

non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Production Efficiency -$10,823,000 / -0 FTE 

BEP will strategically prioritize and perform 

critical mission requirements to lower 

production costs to offset increases in MCLs. 

Program Decreases

Currency Reader -$20,000,000 / - 0 FTE

As the Currency Reader distribution program 

matures and downloadable applications and 

image recognition technology becomes more 

commonplace, BEP expects demand for 

currency readers to decline in FY 2018. 

Materials -$10,851,000 / -0 FTE 

Materials reduction: Reduction in materials 

due to program reduction, increased 50 subject 

printing coupled with anticipated reduction in 

spoilage. 

Program Increase

DCF Production Facility Replacement 

+$64,000,000 / +0 FTE

Funding is requested in FY 2018 to award 

replacement facility build design service 

contracts. Absent legislative authority to 

purchase land and construct a new, smaller, 

more efficient currency production facility, an 

additional $15 million would be required in 

FY 2018 to award needed renovation contracts 

in order to ensure BEP’s ability to meet its 

mission. 

68
Legislative Proposals

In 2018 BEP requests statutory authority to 

purchase land and construct a new more 

efficient currency production facility in the 

National Capital Region. 

The FRB supports this project. Alternatively, 

BEP must begin the renovation of the existing 

DC Main and Annex Buildings in FY 2018. 

Renovation will cost approximately $1.8 

billion, $700 million more than the cost of 

purchasing and constructing a new facility,

and would have none of the projected 

efficiencies (28 percent less space and a $38 

million reduction in annual operating costs). 

BEP Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 –

FY 2016

Budget Activity Performance Measure Actual Actual Actual Target Target Trend

Manufacturing Percent of Currency Notes Delivered 

Returned Due to Defects 0.00001 .0000003 .0000003 0.0001 0.0001

Manufacturing Best Places to Work in Federal 

Government Ranking 51 74 97 99 99

Manufacturing Lost Time Accident Rate per 100 

Employees 1.73 1.65 1.77 1.80 1.80

Manufacturing Manufacturing Costs For Currency (Dollar 

Costs Per Thousand Notes Produced) 44.22 42.35 44.25 50.0 50.0

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 2016 the cost of 

manufacturing was lower than anticipated; the 

actual result was $44.25 per 1,000 notes 

produced compared to a target of $50.00. 

BEP’s target for this performance metric in 

both 2017 and 2018 is set at $50.00 per 1,000 

notes produced. 

The Percent of Currency Notes Returned Due 

to Defects is an indicator of the BEP’s ability 

to provide a quality product. BEP’s FY 2016 

target was .0001 percent, and the actual result 

was .0000003 percent. BEP’s target for this 

performance metric will be held constant at 

.0001 percent for both FY 2017 and 2018. 

BEP’s ranking in the Best Place to Work in the 

Federal Government ranking is based on the 

Partnership for Public Service data on three 

questions in the Federal Employee Viewpoint 

Survey. BEP’s 2016 rank was 97 out of 305. 

BEP will continue to target improving its 

ranking and strives to be in the upper quartile 

of Federal agencies.

The Lost Time Accident Rate per 100 

Employees measures the Bureau’s ability to 

reduce injuries and illnesses in the workplace. 

BEP’s 2016 lost time accident rate was 1.77

cases compared to the target of 1.80 cases. 

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 will be held constant at 1.80 per 100 

employees for FY 2017 and FY 2018. 

69
Department of the Treasury – Budget in Brief 

70
United States Mint

Program Summary by Budget Activity

Dollars in Thousands

FY 2016 FY 2017 FY 2018 FY 2017 to FY 2018

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $3,272,106 $2,805,952 $2,694,784 ($120,000) -3.96%

Total Resources $3,272,106 $2,805,952 $2,694,784 ($120,000) -3.96%

FTE 1,692 1,801 1,801 0 0.00%

Summary 

The Mint operates under the United States 

Mint’s Public Enterprise Fund (PEF), as 

codified at 31 U.S.C. § 5136. The Mint 

generates revenue through the sale of 

circulating coins to the Federal Reserve Banks 

(FRB), numismatic products to the public, and 

bullion coins to authorized purchasers. All 

circulating and numismatic operating expenses

along with capital investments incurred for the 

Mint’s operations and programs are paid out of 

the PEF. By law, all funds in the PEF are 

available without fiscal year limitation. 

Revenues determined to be in excess of the 

amount required by the PEF are transferred to 

the United States Treasury General Fund. The 

Mint’s key priorities for FY 2018 include: 

• Circulating - Efficiently and effectively 

mint and issue approximately 16.0 billion 

circulating coins in FY 2018 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 2018 United States Mint estimated total 

revenues are $3,098,226,000, total expenses 

are $2,694,784,000 of which $40,500,000 are 

for capital investments, and net results are 

$403,442,000 in earnings. 

71
US Mint FY 2018 Budget Highlights

Dollars in Thousands

FY 2018 Budget Adjustments

Adjustment to Estimates

Maintaining Current Level (MCLs)

Pay Raise +$3,100,000 / +0 FTE

Funds are required for the January 2018 payraise.

Pay Annualization +$1,136,000 / +0 FTE

Funds are required for and the annualization of 

the 2017 pay-raise. 

Non-Pay +$4,597,000 / +0 FTE

Funds are required for non-labor expenses 

such as travel, contracts, rent, supplies, and 

equipment. 

Program Increases 

Metal Due to Forecast Increase in 

Circulating Coin Metal Prices +$20,000,000 

/ +0 FTE

FRB demand for circulating coins will remain 

flat in FY 2018 at 16.0 billion coins; however, 

metal prices are forecasted to rise modestly, 

causing an increase in overall production costs 

for the circulating program. Increases in 

metals prices result in a $20 million increase 

for metal purchases.

Program Decreases 

Metal Due to Forecast Decrease in 

Numismatic/Bullion Coin Production 

-$140,000,000 / -0 FTE

Forecasted demand for the numismatic 

program continues to decrease in FY 2018. 

The Presidential $1 Coin Program ended in 

2016, and the first full-year impact will be in 

FY 2018. 

Explanation of Budget Activities

Manufacturing $3,098,226,000 from

revenue/offsetting collections

The Mint has one budget activity: 

Manufacturing. This encompasses the 

bureau’s two major programs: circulating 

coinage and numismatic products, including 

bullion coins, collector coins, and national 

medals.

Circulating Coinage Program Circulating 

coinage includes the minting and issuing of 

pennies, nickels, dimes, and quarter-dollars. 

The Mint delivers circulating coinage to the 

FRBs in quantities to support their service to 

commercial banks and other financial 

FTE Materials 

 Operating & 

Capital Total 

FY 2017 Original Estimate 1,874 $2,510,000 $446,207 $2,956,207 

 10 $8,577 $8,577 

($100,000) ($100,000)

($50,000) ($50,000)

 (83) ($8,832) ($8,832)

Revised - FY 2017 Estimated Resources 1,801 2,360,000 445,952 2,805,952

Changes to Base:

Maintain Current Levels (MCLs) $8,832 $8,832 

 Pay-Raise 3,100 3,100 

 Pay Annualization 1,136 1,136 

 Non-Pay 4,597 4,597 

Subtotal, Changes to the Base $8,832 $8,832 

Total FY 2018 Base 1,801 2,360,000 454,784 2,814,784

Program Changes

 Program Decreases:

 Metals due to forecasted decrease in bullion production ($140,000) ($140,000)

 Program Increases:

 Metals due to forecasted increase in circulating coin metals prices $20,000 $20,000 

Subtotal FY 2018 Program Changes ($120,000) ($120,000)

Total FY 2018 Estimate 1,801 2,240,000 454,784 2,694,784

United States Mint

Adjustment to Estimate - Cyber Security Initiative

Adjustment to Estimate - Metal due to forecasted decrease in circulating coin production

Adjustment to Estimate - Metal due to forecasted decrease in numismatic/bullion production

Adjustment to Estimate - Staffing Streamline

72
institutions. The Mint recognizes revenues 

from the sale of circulating coins at face value 

when they are shipped to the FRBs.

The Mint will continue to mint and issue 

circulating 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 Monument (Iowa), Frederick 

Douglass National Historic Site (District of

Columbia), Ozark National Scenic Riverways 

(Missouri), Ellis Island (Statue of Liberty 

National Monument) (New Jersey), and 

George Rogers Clark National Historical Park 

(Indiana). In FY 2018, the Mint will release 

quarters honoring Pictured Rocks National 

Lakeshore (Michigan), Apostle Islands 

National Lakeshore (Wisconsin), Voyageurs 

National Park (Minnesota), Cumberland Island 

National Seashore (Georgia), and Block Island 

National Wildlife Refuge (Rhode Island). 

Numismatic Program

Bullion Coin Program

The Mint produces and issues gold, silver, and 

platinum bullion coins to authorized 

purchasers through the American Eagle, 

American Buffalo, and America the Beautiful 

Silver Bullion Coin Programs to fulfill 

investor demand. Demand for bullion coins is 

greatly influenced by the performance of other 

investment options, such as equities 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 Mint’s numismatic program provides 

high-quality versions of circulating coinage, 

precious metal coins, commemorative coins, 

and medals for sale 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 Mint will continue to mint and issue $1 

coins commemorating 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). 

Commemorative coins are authorized by law 

to recognize and honor people, places, events, 

institutions, and other subjects of historic or 

national significance. In FY 2017, the Mint is 

scheduled to mint commemorative coins for 

two programs: the Lions Club International 

Commemorative Coin (P.L. 112-181) and the 

Boys Town Centennial Commemorative Coins 

(P.L. 114-30). In FY 2018, the Mint has 

authorization to mint commemorative coins

for two programs: the World War I American 

Veterans Centennial Commemorative Coin 

(P.L.113-212) and the Breast Cancer 

Awareness Commemorative Coin (P.L. 114-

148). 

Appropriation Change Proposal

The Mint proposes to increase the limit on 

circulating coinage and protective service 

capital from $20 million to $30 million to 

execute a comprehensive capital strategy that 

focuses on safety, equipment replacements, 

protection, and facility improvements.

73
Mint Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measure Actual Actual Actual Target Target Trend

Manufacturing Customer Satisfaction Index 

(%) 89.8 89.5 91.0 90.0 90.0

Manufacturing Seigniorage per Dollar Issued 

($) 0.37 0.49 0.52 0.48 0.49

Manufacturing Safety Incident Recordable 

Rate 3.31 3.42 2.53 2.83 2.75

Manufacturing Numismatic Sales Units 

(Million Units) 5.7 5.4 4.2 4.4 3.5

Key: DISC - Discontinued, B - Baseline

Description of Performance

Customer Satisfaction Index (CSI) 

The Mint conducts a quarterly survey of a 

random sample of active numismatic 

customers. The survey is intended to 

capture customer satisfaction with the 

Mint’s service performance as a coin 

products supplier and with the quality of 

specific products. The CSI is a single 

quantitative score of the survey results. By 

the end of FY 2016, the CSI reached 91.0 

percent, exceeding its 90.0 percent target. 

The Mint anticipates the FY 2017 and 2018 

CSI ratings will remain steady. The 

performance target for CSI is 90.0 percent 

for both FY 2017 and FY 2018. 

Numismatic Sales Units

The numismatic sales unit metric measures 

public demand for coin products sold from 

numismatic operations. Numismatic sales 

units totaled 4.2 million in FY 2016, falling 

short of the 4.6 million target. The primary 

drivers for this shortfall were lower 

customer demand for silver coin products 

and a loss in unit sales of the American 

Eagle Silver (AE) dollar coin due to 

legislative restrictions on the design of coins 

sold during 2016 (Public Law 114-94). 

Numismatic sales performance targets have 

been established at 4.4 million units for 

FY 2017 and 3.5 million for FY 2018. 

Safety Incident Recordable Rate

Safety incident recordable rate is the number 

of injuries and illnesses meeting the 

Occupational Safety and Health 

Administration (OSHA) recording criteria 

per 100 full-time workers. The safety 

incident recordable rate was 2.53 recordable 

injuries and illnesses per 100 full-time 

workers in FY 2016, which is below the 

2.91 target and significantly below the 

industry average rate of 5.9 for metal 

forging and stamping manufacturers. The 

performance targets for this measure are 

2.83 for FY 2017 and 2.75 for FY 2018 

Seigniorage per Dollar Issued 

Seigniorage per dollar issued is the financial 

return on circulating operations, calculated 

as seigniorage divided by the total face 

value of circulating coins shipped to the 

FRBs. It measures the cost effectiveness of 

minting and issuing the United States’ 

circulating coinage. Seigniorage per dollar 

issued was $0.52 in FY 2016, above the 

performance target of $0.47. FY 2016 

results exceeded the target as a result of a 

one percent increase in circulating shipment 

volumes combined with a 10 percent 

decrease in cost of goods sold. FY 2017 and 

FY 2018 seigniorage per dollar issued 

performance targets are set at $0.48 and 

$0.49, respectively. 

74
Office of Comptroller of the Currency

Program Summary by Budget Activity

Dollars in Thousands

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Actual Estimated Estimated $ Change % Change

Supervise $975,477 $1,057,980 $1,099,477 $41,497 3.92%

Regulate $90,463 $98,114 $101,963 $3,849 3.92%

Charter $23,978 $26,006 $27,026 $1,020 3.92%

Total Cost of Operations $1,089,918 $1,182,100 $1,228,466 $46,366 3.92%

FTE 3,845 3,938 4,041 103 2.62%

Summary

The Office of the Comptroller of the Currency 

(OCC) was created by Congress in 1863 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. 

As of March 31, 2017, the OCC supervised 

973 national bank charters and 48 federal 

branches of foreign banks in the United States 

with total assets of approximately $11.0 

trillion, and 373 federal savings associations 

with total assets of approximately $738 billion. 

In total, the OCC supervises approximately

$11. 7 trillion in financial institution assets.

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) An OCC that is firmly 

positioned to continue to operate 

independently and effectively into the future. 

To achieve its goals and objectives, the OCC 

organizes its programs under three activities: 

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 nationwide staff of bank 

examiners conducts on-site reviews of banks 

and provides sustained supervision of these 

institutions’ operations. Examiners analyze 

asset quality, capital adequacy, earnings, 

liquidity, and sensitivity to market risk for all 

banks, and assess compliance with federal 

consumer protection laws and regulations.

Examiners also evaluate management’s ability 

to identify and control risk, and assess banks’ 

performance in meeting the credit needs of the 

communities in which they operate, pursuant 

to the Community Reinvestment Act (CRA). 

In supervising banks, the OCC has the power 

to: 

• 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;

75
• 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. 

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 ($1,057,980 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.

Regulate ($98,114,000 from 

revenue/offsetting collections) 

The Regulate Program supports the OCC’s 

strategic goal of a vibrant and diverse system 

of national banks and federal savings 

associations that supports a robust U.S. 

economy. Specifically, 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 national banking and federal 

savings association practices, provide 

guidance on risks and responsibilities facing 

national banks and federal savings 

associations, or prohibit (or restrict) national 

banking or federal savings association 

practices deemed to be imprudent or unsafe. 

They also establish standards for ensuring fair 

access to financial services and fair treatment 

of national bank and federal savings 

association customers. This program includes 

establishing examination policies and 

handbooks; interpreting administrative, 

judicial, and congressional proceedings; and 

establishing the applicable legal and 

supervisory framework for new financial 

services and products. 

Charter ($26,006,000 from revenue/offsetting 

collections)

The Charter Program consists of ongoing 

activities that result in the chartering of 

national banks and federal savings associations 

and the evaluation of the permissibility of 

structures and activities of national banks and 

federal savings associations and their 

subsidiaries. This includes the review and 

approval of national bank and federal savings 

association charters, federal branches and 

agencies, mergers, acquisitions, conversions, 

business combinations, corporate 

reorganizations, changes in control, operating 

subsidiaries, branches, relocations, and 

subordinated debt issuances. By supporting 

the entry of new products and institutions into 

the financial system in a manner consistent 

with safety and soundness, the Charter 

Program supports the OCC’s strategic goals of 

76
assuring safety and soundness while allowing 

national banks and federal savings associations 

to offer a full competitive array of financial 

services. 

Legislative Proposals

OCC has no legislative proposals. 

OCC Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Charter

Percentage of Licensing 

Applications and Notices 

Completed within Established 

Timeframes

98.0 97.0 98.0 95.0 95.0

Supervise

Percentage of National Banks 

and Federal Savings 

Associations with Composite 

CAMELS Rating 1 or 2

87.0 91.0 93.0 90.0 90.0

Supervise

Rehabilitated National Banks 

And Federal Savings 

Associations As A Percentage 

Of Problem National Banks One 

Year Ago (CAMEL 3,4, or 5)

39.0 39.0 43.0 40.0 40.0

Supervise

Percentage of National Banks 

and Federal Savings 

Associations With Consumer 

Compliance Rating of 1 or 2

95.0 96.0 98.0 90.0 90.0

Supervise

Total OCC Costs Relative To 

Every $100,000 in Bank And 

Federal Savings Associations 

Assets Regulated ($)

9.75 9.37 9.65 10.2 10.2

Supervise

Percentage of National Banks 

and Federal Savings 

Associations That Are 

Categorized As Well Capitalized 

(Oe)

93.0 95.0 96.0 95.0 95.0

Key: DISC - Discontinued, B - Baseline

77
Description of Performance

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 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. 

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 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, 

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, 2016, 93 percent of 

national banks and federal savings associations 

earned composite CAMELS rating of either 1 

or 2. 

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 98 percent earning a 

consumer compliance rating of either 1 or 2 

through September 30, 2016. 

The OCC’s timely and effective approval of 

corporate applications contributes to the 

nation’s economy by enabling national banks 

78
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 98 percent of 

applications and notices within the time 

standard through September 30, 2016. 

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.

79
Department of the Treasury – Budget in Brief 

80
International Programs

Program Summary

Dollars in Thousands

 FY 2016 

Enacted 

FY 2017 

Annualized 

CR Rate 1/ 

FY 2018 

Request 

FY 2017 to FY 2018

$ Change % 

Change

Multilateral Development Banks (MDBs) $1,816,477 $1,813,024 $1,348,123 ($464,901) -25.64%

International Development Association (IDA) $1,197,128 $1,194,852 $1,097,010 ($97,842) -8.19%

Int'l Bank for Reconstruction and Development (IBRD) $186,957 $186,602 $0 ($186,602) -100.00%

Inter-American Development Bank (IDB) $102,020 $101,827 $0 ($101,827) -100.00%

African Development Fund (AfDF) $175,668 $175,334 $171,300 ($4,034) -2.30%

African Development Bank (AfDB) $34,118 $34,053 $32,418 ($1,635) -4.80%

Asian Development Bank (AsDB) $5,608 $5,598 $0 ($5,598) -100.00%

Asian Development Fund (AsDF) $104,977 $104,777 $47,395 ($57,382) -54.77%

North American Development (NADB) $10,000 $9,981 $0 ($9,981) -100.00%

Food Security $74,930 $74,787 $30,000 ($44,788) -59.89%

Global Agriculture and Food Security Program 

(GAFSP) $43,000 $42,918 $0 ($42,918) -100.00%

Int'l Fund for Agricultural Development (IFAD) $31,930 $31,869 $30,000 ($1,869) -5.87%

Environmental Trust Funds $398,563 $397,806 $102,375 ($295,430) -74.27%

Clean Technology Fund (CTF) $170,680 $170,356 $0 ($170,356) -100.00%

Strategic Climate Fund (SCF) 2/ $59,620 $59,507 $0 ($59,507) -100.00%

Global Environment Facility (GEF) $168,263 $167,943 $102,375 ($65,568) -39.04%

Treasury Office of Technical Assistance (OTA) $23,500 $23,455 $25,455 $2,000 8.53%

TOTAL $2,313,470 $2,309,072 $1,505,953 ($803,119) -34.78%

1/ The FY 2018 President's Budget references the FY 2017 Annualized Continuing Resolution (CR) rate levels for Treasury 150 programs, 

since full-year FY 2017 appropriations for these accounts were not enacted at the time the Budget was prepared. 

2/ Includes transfer from the Economic Support Fund, as required by sec. 7060(c)(5) of the Consolidated Appropriations Act, 2016.

81
Summary

The Treasury Department requests $1.5 

billion for International Programs in FY 2018. 

To help move the Nation toward fiscal 

responsibility, prioritize our military and 

domestic needs here at home, and focus on 

critical strategic objectives internationally, we 

will support the most critical investments in 

multilateral development institutions that 

provide strong benefits for taxpayers, while 

ensuring that U.S. contributions are set at an 

appropriate level relative to our partner 

countries. These investments by Treasury’s 

International Programs strengthen U.S. 

national security by advancing a more secure, 

economically prosperous, and democratic 

world. 

Multilateral Development Banks

Our request includes $1.3 billion for the 

multilateral development banks (MDBs). The 

MDBs play key roles in the effort to increase 

global economic growth and reduce poverty, 

which advances U.S. foreign policy objectives 

of sustaining peace and stability, promoting 

security, and combatting terrorism.

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). 

International Development Association 

(IDA): $1,097 million in support of IDA 

programs over the eighteenth replenishment 

(IDA-18; FY 2018 – FY 2020), including 

towards the first of three installments to IDA18. 

African Development Fund (AfDF): $171.3 

million in support of AfDF programs over the 

fourteenth replenishment (AfDF-14; FY 2018 

– FY 2020), including towards the first of 

three installments to AfDF-14. Together, 

these IDA and AfDF levels reduce the U.S. 

commitment by approximately $650 million 

over three years compared to the previous 

Administration’s pledges, while retaining the 

U.S. current status as a top donor at these 

institutions. 

African Development Bank (AfDB): $32.4 

million for the purchase of 2,170 shares 

towards the seventh of eight installments 

under the AfDB’s Sixth General Capital 

Increase (GCI-6). 

Asian Development Fund (AsDF): $47.4 

million in support of AsDF programs over the 

eleventh replenishment (AsDF-12; FY 2018 – 

FY 2021), including towards the first of four 

installments to AsDF-12. 

North American Development Bank (NADB): 

Treasury is not requesting funding for NADB 

due to budget constraints, and in recognition 

that Congress has not provided authorization 

for NADB for the current general capital 

increase.

Food Security

International Fund for Agricultural 

Development (IFAD): $30.0 million for the 

third of three installments towards IFAD’s 

tenth replenishment (IFAD-10). 

Global Agriculture and Food Security 

Program (GAFSP): Treasury is not 

requesting funding for GAFSP as no new 

funding is required in FY 2018, since the 

2012 pledge period is over, the United States 

has sufficient funding to meet its pledge, and 

other donors’ support has been limited. 

Environmental Trust Funds

Global Environment Facility (GEF): $102.4 

million toward the fourth of four installments 

to the sixth replenishment of the Global 

Environment Facility (GEF-6).

82
Green Climate Fund (GCF): Treasury’s 

request eliminates U.S. funding for GCF in 

FY 2018, in alignment with ending the Global 

Climate Change Initiative (GCCI) and with 

the President’s promise to cease payments to 

the United Nations’ climate change programs.

Clean Technology Fund (CTF): Treasury is 

not requesting funding for the Climate 

Investment Funds (CIFs), including the CTF, 

reflecting the completion of the $2 billion 

U.S. commitment to the CIFs in FY 2016 and 

the intention not to provide any further U.S. 

contributions, in alignment with eliminating 

the GCCI. 

Strategic Climate Fund (SCF): Treasury is 

not requesting funding for the CIFs, including 

the SCF, reflecting the completion of the $2 

billion U.S. commitment to the CIFs in FY 

2016 and the intention not to provide any 

further U.S. contributions, in alignment with 

eliminating the GCCI. 

Treasury Office of Technical Assistance

Treasury Office of Technical Assistance 

(OTA): $25.5 million to support OTA’s work 

to provide developing and transitional 

countries with the knowledge and skills 

required to strengthen revenue collection, 

plan and execute budgets, manage debt, build 

sound banking systems, and develop strong 

controls to combat economic crimes and 

terrorist financing regimes.

83
Department of the Treasury – Budget in Brief 

84
Department of the Treasury – Budget in Brief 

Summary of FY 2018 Appropriations Language 

A full-year 2017 appropriation for this 

account was not enacted at the time the budget 

was prepared; therefore, the budget assumes 

this account is operating under the Further 

Continuing Appropriations Act, 2017 (P.L. 

114–254). 

DEPARTMENTAL OFFICES 

SALARIES AND EXPENSES 

For necessary expenses of the Departmental 

Offices including operation and maintenance 

of the Treasury Building and 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 state and 

local entities; and Treasury-wide management 

policies and programs activities, 

$201,751,000: Provided, That of the amount 

appropriated under this heading— (1) not to 

exceed $350,000 is for official reception and 

representation expenses; 

(2) 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) not to exceed $24,000,000 

shall remain available until September 30, 

2019, 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; (D) the 

development and implementation of programs 

within the Office of Critical Infrastructure 

Protection and Compliance Policy, including 

entering into cooperative agreements;(E) 

operations and maintenance of facilities; and 

(F) international operations. 

OFFICE OF TERRORISM AND 

FINANCIAL INTELLIGENCE 

SALARIES AND EXPENSES 

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, 

$116,778,000: Provided, That of the amounts 

appropriated under this heading, up to 

$5,000,000 shall remain available until 

September 30, 2019. 

CYBERSECURITY ENHANCEMENT 

ACCOUNT 

SALARIES AND EXPENSES 

For salaries and expenses for enhanced 

cybersecurity for systems operated by the 

Department of the Treasury, $27,264,000, to 

remain available until September 30, 2020: 

Provided, That amounts made available under 

this heading shall be in addition to other 

amounts available to Treasury offices and 

bureaus for cybersecurity. 

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, $4,426,000, to remain available 

until September 30, 2020: 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 

85
Department of the Treasury – Budget in Brief 

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, $34,112,000, 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, 2019, 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; 

$161,113,000, of which $5,000,000 shall 

remain available until September 30, 2019; 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 

(CANCELLATION) 

Of the unobligated balances available under 

this heading, $876,000,000 are hereby 

permanently cancelled not later than 

September 30, 2018. 

(INCLUDING RETURN OF FUNDS) 

In addition, of amounts in the Treasury 

Forfeiture Fund, $38,800,000 from funds paid 

to the United States Government by BNP 

Paribas S.A. as part of, or related to, a plea 

agreement dated June 27, 2014, entered into 

between the Department of Justice and BNP 

Paribas S.A., and subject to a consent order 

entered by the United States District Court for 

the Southern District of New York on May 1, 

2015, in United States v. BNPP, No. 14 Cr. 

460 (S.D.N.Y.), are hereby returned to the 

General Fund of the Treasury.

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, 

$14,000,000, to be used for administrative 

expenses, including administration of CDFI 

fund programs and the New Markets Tax 

Credit Program: Provided, That during fiscal 

year 2018, none of the funds available under 

this heading are available for the cost, as 

86
Department of the Treasury – Budget in Brief 

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 further, That 

commitments to guarantee bonds and notes 

under such section 114A shall not exceed 

$500,000,000: Provided further, That such 

section 114A shall remain in effect until 

September 30, 2018. 

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), $20,297,000. 

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, $112,764,000, of 

which not to exceed $34,335,000 shall remain 

available until September 30, 2020. 

BUREAU OF THE FISCAL SERVICE 

SALARIES AND EXPENSES 

For necessary expenses of operations of the 

Bureau of the Fiscal Service, $330,837,000; of 

which not to exceed $4,210,000, to remain 

available until September 30, 2020, is for 

information systems modernization initiatives; 

and of which $5,000 shall be available for 

official reception and representation expenses. 

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, $98,658,000; 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.

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 2018 

under such section 5136 for circulating 

coinage and protective service capital 

investments of the United States Mint shall not 

exceed $30,000,000. 

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Department of the Treasury – Budget in Brief 

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, associated support costs, 

and other services as authorized by 5 U.S.C. 

3109, at such rates as may be determined by 

the Commissioner, $2,212,311,000, 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 remain 

available until September 30, 2019, shall be 

available for a Community Volunteer Income 

Tax Assistance matching grants program for 

tax return preparation assistance, 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.

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)), associated support costs, 

and to provide other services as authorized by 

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

determined by the Commissioner, 

$4,706,500,000, of which not to exceed 

$50,000,000 shall remain available until 

September 30, 2019, and of which not less 

than $60,257,000 shall be for the Interagency 

Crime and Drug Enforcement program. 

OPERATIONS SUPPORT 

For necessary expenses of operating the 

Internal Revenue Service, including rent 

payments; facilities services; printing; 

postage; physical security; oversight and 

management of IRS-wide activities; research 

and statistics of income; telecommunications; 

information technology development, 

enhancement, operations, maintenance, and 

security; the hire of 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; $3,946,189,000, of which 

not to exceed $100,000,000 shall remain 

available until September 30, 2019; 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, 2020, for research; of which 

not to exceed $20,000 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 2019, a summary of cost and schedule 

performance information for its major 

information technology systems. 

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Department of the Treasury – Budget in Brief 

BUSINESS SYSTEMS 

MODERNIZATION 

For necessary expenses of the Internal 

Revenue Service's business systems 

modernization program, $110,000,000, to 

remain available until September 30, 2020, 

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 

notification of the Committees on 

Appropriations. 

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. 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. 106. 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. 107. 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. 108. 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. 109. Section 9503(a)(5) of title 5, United 

States Code, is amended by inserting before 

89
Department of the Treasury – Budget in Brief 

the semicolon the following: ", but are 

renewable for an additional two years, based 

on a critical organizational need".

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", "Community 

Development Financial Institutions Fund", 

"Office of Terrorism and Financial 

Intelligence", "Office of Inspector General", 

"Special Inspector General for the Troubled 

Asset Relief Program", "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 

notification of the Committees on 

Appropriations of the House of 

Representatives and the Senate: Provided, 

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 notification of the 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 

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 advance 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 

90
Department of the Treasury – Budget in Brief 

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 2018 until the 

enactment of the Intelligence Authorization 

Act for Fiscal Year 2018. 

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 full-time equivalents within 

each office during the 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. During fiscal year 2018— 

(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 

91
Department of the Treasury – Budget in Brief 

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. 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"; and 

(b) in subsection (e)(2)(B) by striking 

"$100,000,000" and inserting "$50,000,000". 

SEC. 128. Notwithstanding paragraph (2) of 

section 402(c) of the Helping Families Save 

their Homes Act of 2009, in utilizing funds 

made available by paragraph (1) of section 

402(c) of such Act, the Special Inspector 

General for the Troubled Asset Relief 

Program shall prioritize the performance of 

audits or investigations of any program that is 

funded in whole or in part by funds 

appropriated under the Emergency Economic 

Stabilization Act of 2008, to the extent that 

such priority is consistent with other aspects 

of the mission of the Special Inspector 

General. 

92
Mandatory Funding Levels for the FY 2018 President’s Budget – Treasury Chapter

(Dollars in Millions, Includes Legislative Proposals)

Appropriations (Dollars in Millions) FY 2016 FY 2017

Actual Estimated Estimated $ Change % Change

Payment to the Resolution Funding Corporation 2,628 2,628 2,628 0 0.0%

Interest on Uninvested Funds 3 12 12 0 0.0%

Restitution of Forgone Interest 2,687 0 0 0 0.0%

Federal Interest Liabilities to States 0 1 1 0 0.0%

Interest Paid to Credit Financing Accounts 7,377 10,608 11,152 544 5.1%

Refunding Internal Revenue Collections, Interest 1,530 1,424 1,996 572 40.2%

Interest on Public Debt 429,963 474,506 505,577 31,071 6.5%

Other Interest (45,197) (47,267) (49,206) (1,939) 4.1%

INTEREST PAYMENTS $398,991 $441,912 $472,160 $30,248 6.8%

MANDATORY ACCOUNTS

Build America Bond Payments, Recovery Act 3,646 3,634 3,903 269 7.4%

Capital Magnet Fund, Community Development Financial Institutions 93 118 8 (110) -93.2%

Check Forgery Insurance Fund 9 10 10 0 0.0%

Cheyenne River Sioux Tribe Terrestrial Wildlife Habitat Restoration Trust Fund 1 1 1 0 0.0%

Claims, Judgments, and Relief Acts 4,795 2,255 2,255 0 0.0%

Community Development Financial Institutions Fund Program Account 5 1 0 (1) -100.0%

Comptroller of the Currency 1,170 1,133 1,228 95 8.4%

Continued Dumping and Subsidy Offset 53 40 40 0 0.0%

Exchange Stabilization Fund 55 57 80 23 40.4%

Federal Financing Bank 1,905 1,954 2,388 434 22.2%

Federal Reserve Bank Reimbursement Fund 496 580 586 6 1.0%

Financial Agent Services 726 792 800 8 1.0%

Financial Research Fund 104 87 68 (19) -21.8%

Fiscal Service 141 172 176 4 2.3%

Grants for Specified Energy Property in Lieu of Tax Credits, Recovery Act 126 978 300 (678) -69.3%

GSE Mortgage-backed Securities Purchase Program Account 3 3 2 (1) -33.3%

Gulf Coast Restoration Trust Fund 133 295 177 (118) -40.0%

Hope Reserve Fund 50 114 0 (114) -100.0%

Informant Payments 42 50 54 4 8.0%

Internal Revenue Collections for Puerto Rico 417 384 369 (15) -3.9%

IRS Miscellaneous Retained Fees 380 431 497 66 15.3%

Office of Financial Stability 153 107 83 (24) -22.4%

Payment of Government Losses in Shipment 1 1 1 0 0.0%

Payment to Issuer of New Clean Renewable Energy Bonds 38 37 40 3 8.1%

Payment to Issuer of Qualified Energy Conservation Bonds 36 36 39 3 8.3%

Payment to Issuer of Qualified School Construction Bonds 746 740 795 55 7.4%

Payment to Issuer of Qualified Zone Academy Bonds 58 58 62 4 6.9%

Payment Where Alternative Minimum Tax Credit Exceeds Liability for Tax 2 0 0 0 0.0%

Payment Where American Opportunity Credit Exceeds Liability for Tax 3,993 4,021 4,042 21 0.5%

Payment Where Certain Tax Credits Exceed Liability for Corporate Tax 108 857 856 (1) -0.1%

Payment Where Child Tax Credit Exceeds Liability for Tax 20,188 20,193 19,894 (299) -1.5%

Payment Where Earned Income Credit Exceeds Liability for Tax 60,580 60,943 61,083 140 0.2%

Payment Where Health Coverage Tax Credit Exceeds Liability for Tax 12 21 32 11 52.4%

Payment Where Small Business Health Insurance Tax Credit Exceeds Liability for Tax 15 16 14 (2) -12.5%

Presidential Election Campaign Fund 29 49 53 4 8.2%

Private Collection Agent Program 0 15 60 45 300.0%

Refundable Premium Tax Credit and Cost Sharing Reductions 30,827 40,129 42,930 2,801 7.0%

Reimbursements to Federal Reserve Banks 129 148 149 1 0.7%

Small Business Lending Fund Program Account 6 12 13 1 8.3%

Terrorism Insurance Program 2 48 133 85 177.1%

Travel Promotion Fund 93 93 0 (93) -100.0%

Treasury Forfeiture Fund (2,612) 1,390 1,385 (5) -0.4%

Troubled Asset Relief Program Account 548 10 0 (10) -100.0%

Troubled Asset Relief Program Equity Purchase Program 125 6 0 (6) -100.0%

Subtotal, MANDATORY ACCOUNTS $129,427 $142,019 $144,606 $2,587 1.8%

Offsets:

Treasury Mandatory Offsetting Receipts (17,649) (29,454) (23,413) 6,041 -20.5%

TOTAL, DEPARTMENT OF THE TREASURY $510,769 $554,477 $593,353 $38,876 7.0%

FY 2018

93
Total Treasury Department Mandatory Budget

The Treasury Department Mandatory Budget 

includes $593 billion dollars in interest 

payments, mandatory accounts, and offsetting 

receipts (offsets). These accounts and the 

estimated budget authority are summarized 

above. Account totals include the effects of 

FY 2018 policy proposals. For more detailed 

descriptions of each account, please see the 

Department of the Treasury chapter in the 

FY 2018 Appendix, Budget of the U.S. 

Government at: 

http://www.whitehouse.gov/omb/budget. 

Interest Payments - $472 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 - $145 billion

These are accounts for which the Congress has 

given the Department of Treasury permanent 

authority to expend funds as appropriations. 

These include appropriations that fund a 

number of programs under Treasury 

jurisdiction such as the Terrorism Risk 

Insurance Program and the Treasury 

Forfeiture Fund. 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 2018 Appendix, 

Budget of the U.S. Government. 

Offsetting Receipts - $23 billion

Offsets include payments to the Government 

that are not credited directly to expenditure 

accounts. These receipts offset gross budget 

authority and outlays at the agency or bureau 

level. 

Treasury’s offsetting receipts 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).

94
FY 2017 Enacted Levels

Dollars in Thousands

 

FY 2016 FY 2017 FY 2017 FY 2018 Increase/ Percent

Enacted Annualized CR 

Rate Omnibus1 Request Decrease Change

Management & Financial $1,404,653 $1,401,983 $1,473,456 $1,122,000 ($279,983) -19.97%

Departmental Offices Salaries and Expenses $222,500 $222,077 $224,376 $201,751 ($20,326) -9.15%

Terrorism and Financial Intelligence (TFI) $117,000 $116,778 $123,000 $116,778 $0 0.00%

Cybersecurity Enhancement $0 $0 $47,743 $27,264 $27,264 100.00%

Department-wide Systems and Capital Investments 

Program $5,000 $4,990 $3,000 $4,426 ($564) -11.30%

Office of Inspector General $35,416 $35,349 $37,044 $34,112 ($1,237) -3.50%

Treasury IG for Tax Administration $167,275 $166,957 $169,634 $161,113 ($5,844) -3.50%

Special Inspector General for TARP $40,671 $40,594 $41,160 $20,297 ($20,297) -50.00%

Community Development Financial Institutions Fund $233,523 $233,079 $248,000 $14,000 ($219,079) -93.99%

Financial Crimes Enforcement Network $112,979 $112,764 $115,003 $112,764 $0 0.00%

Alcohol and Tobacco Tax and Trade Bureau $106,439 $106,237 $111,439 $98,658 ($7,579) -7.13%

Bureau of the Fiscal Service $363,850 $363,158 $353,057 $330,837 ($32,321) -8.90%

Tax Administration2 $11,235,000 $11,213,642 $11,235,000 $10,975,000 ($238,642) -2.13%

IRS Taxpayer Services $2,333,376 $2,328,940 $2,333,376 $2,212,311 ($116,629) -5.01%

IRS Enforcement $4,714,936 $4,855,688 $4,864,936 $4,706,500 ($149,188) -3.07%

IRS Operations Support $3,896,688 $3,739,565 $3,746,688 $3,946,189 $206,624 5.53%

IRS Business Systems Modernization $290,000 $289,449 $290,000 $110,000 ($179,449) -62.00%

Subtotal, Treasury Appropriations excluding 

TEOAF $12,639,653 $12,615,625 $12,708,456 $12,097,000 ($518,625) -4.11%

Treasury Forfeiture Fund Total3 ($876,000) ($876,000) ($1,302,000) ($876,000) $0 0.00%

Temporary Rescission ($876,000) ($876,000) ($988,000) $876,000 -100.00%

Permanent Rescission ($314,000) ($876,000) ($876,000) 0.00%

Subtotal, Treasury Appropriations including 

TEOAF $11,763,653 $11,739,625 $11,406,456 $11,221,000 ($518,625) -4.42%

Treasury International Programs $2,313,470 $2,309,072 $1,800,577 $1,505,953 ($803,119) -34.78%

Multilateral Development Banks $1,816,477 $1,813,024 $1,571,014 $1,348,123 ($464,901) -25.64%

Food Security $74,930 $74,787 $53,000 $30,000 ($44,787) -59.89%

Environmental Trust Funds $398,563 $397,806 $146,563 $102,375 ($295,431) -74.27%

Office of Technical Assistance (OTA) $23,500 $23,455 $30,000 $25,455 $2,000 8.53%

Total, Treasury Appropriations $14,077,123 $14,048,697 $13,207,033 $12,726,953 ($1,321,744) -9.41%

1/ The omnibus was passed after the budget was completed. It is presented here for the readers' convenience.

FY 2017 CR to FY 2018

2/ The IRS was provided with $290 million in funding in its administrative provisions. This table shows that funding as allocated. 

FY 2016/2017: $176.8 million Taxpayer Services, $4.9 million Enforcement, and $108.2 million Operations Support.

3/ In FY 2016 and FY 2017 CR, total includes ($176,000,000) of the DHS Rescission (temporary). FY 2017 Ominibus, total includes ($187,000,000) of the 

DHS Rescission (temporary).

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