Bureau of the Public Debt 

Mission Statement 

To borrow the money needed to operate the federal government, account for the resulting debt, 

and provide reimbursable support services to federal agencies. 

Program Summary by Appropriations Account Dollars in Thousands 

Appropriation FY 2006 FY 2007 FY 2007 FY 2008

Salaries and Expenses Enacted

President's 

Budget CR-rate Request

$ from 

CR-rate 

% from 

CR-rate 

Wholesale Securities 

Services $11,812 $11,986 $11,842 $12,474 $632 5.34% 

Government Agency 

Investment Services 13,255 13,451 13,289 13,239 (50) -0.38% 

Retail Securities Services 147,529 149,711 147,912 151,359 3,447 2.33% 

Summary Debt Accounting 5,558 5,641 5,573 5,799 226 4.06% 

Total Appropriated Resources $178,154 $180,789 $178,616 $182,871 $4,255 2.38%

Note: FY 2006 and FY 2007 Total Appropriated Resources includes $3,000,000 in projected user fee 

collections. FY 2008 Total Appropriated Resources includes $10,000,000 in projected user fee 

collections. 

FY 2008 Priorities 

• Conduct more than 200 error-free marketable securities auctions that will result in the issue 

of more than $4 trillion in Treasury bills, notes, bonds and Treasury Inflation-Protected 

Securities. 

• Administer some $3.76 trillion in investments for about 230 federal trust funds. 

• Manage 6,600 state and local government accounts valued at approximately $250 billion. 

• Complete 90 percent of retail customer service transactions within 12 business days. 

• Reconcile more than $72 trillion in securities transactions. 
Table of Contents 

Section 1 – Purpose..........................................................................................2

1A – Description of Bureau Vision and Priorities...................................................................... 2 

1B – Program History and Future Outlook................................................................................. 3 

Section 2 – Budget Adjustments and Appropriation Language....................................5

2.1 – Budget Adjustments Table................................................................................................. 5 

2A – Budget Increases and Decreases Description..................................................................... 5 

2.2 – Operating Levels Table...................................................................................................... 7 

2B – Appropriation Language .................................................................................................... 8 

2B – Permanent, Indefinite Appropriations................................................................................ 8 

2C – Legislative Proposals.......................................................................................................... 9 

Section 3 – Budget and Performance Plan............................................................10

3.1 – Appropriation Detail Table.............................................................................................. 10 

3A – Wholesale Securities Services ......................................................................................... 10 

3.2.1 – Wholesale Securities Services Budget and Performance Plan ..................................... 11 

3B – Government Agency Investment Services....................................................................... 12 

3.2.2 – Government Agency Investment Services Budget and Performance Plan................... 13 

3C – Retail Securities Services................................................................................................. 13 

3.2.3 – Retail Securities Services Budget and Performance Plan............................................. 14 

3D – Summary Debt Accounting.............................................................................................. 15 

3.2.4 – Summary Debt Accounting Budget and Performance Plan.......................................... 16 

Section 4 – Supporting Materials........................................................................17

4.1 – Human Resources Table .................................................................................................. 17 

4A – Human Capital Strategy Description ............................................................................... 17 

4.2 – Summary of IT Resources Table ..................................................................................... 19 

4B – Information Technology Strategy .................................................................................... 20 

4.3 – PART Evaluation Table................................................................................................... 21 

BPD - 1 
Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The Bureau of the Public Debt’s (BPD) vision is to lead the way for responsible, effective 

government through commitment to service, efficient operations, openness to change, and 

values-based behavior. In light of its mission and vision, BPD annually auctions and issues more 

than $4 trillion in Treasury bills, notes, bonds and Treasury Inflation-Protected Securities (TIPS); 

effectively administers the regulation of the primary and secondary Treasury securities markets; 

ensures that reliable systems and processes are in place for issuing, transferring, paying interest 

on, and redeeming Treasury securities; issues and redeems more than 79 million paper savings 

bonds each year; administers approximately $3.76 trillion in investments for some 230 federal 

trust funds; and provides timely and accurate information on the public debt. 

In support of Treasury’s objective to finance the needs of the federal government at the lowest 

cost over time, Public Debt’s top priority is to ensure that the most efficient systems are in place 

to conduct borrowing and deliver securities services to investors. To that end, BPD continues to 

enhance its TreasuryDirect system through which retail customers can purchase and manage 

their holdings of electronic Treasury securities through the internet. With the increased reliance 

on conducting business electronically, Public Debt also places a high priority on adopting 

technological advances to ensure that its systems remain secure. 

 

With its resources, Public Debt: 

• Conducts more than 200 marketable securities auctions annually, resulting in the issue of 

more than $4 trillion in Treasury bills, notes, bonds and TIPS; 

• Administers approximately $3.76 trillion in Government Account Series (GAS) investments, 

which comprise about 44 percent of the public debt outstanding; 

• Manages some 6,600 active State and Local Government Series (SLGS) accounts valued at 

$250 billion; 

• Serves more than 50 million retail customers holding marketable and savings securities, 

including nearly 600,000 investor accounts in the internet-based TreasuryDirect system; 

• Accounts for and reports on $228 billion in federal agency borrowings from Treasury in 

more than 80 accounts; 

• Accounts for and reports on the balance and composition of the more than $8 trillion public 

debt, the single largest liability on the federal government’s balance sheet, and reconciles 

more than $72 trillion in securities transactions reported from numerous systems to cash 

flowing in and out of the federal government each year; 

• Receives unqualified audit opinions on the Schedules of Federal Debt every year since there 

was a requirement to produce financial statements; 

• Provides reimbursable administrative and information technology services to more than 75 

federal agencies. 

The total resources required to support BPD activities for FY 2008 are $198,603,000, including 

$182,871,000 from direct appropriations, of which $10,000,000 is in user fees, and $15,732,000 

from offsetting collections and reimbursable programs. 

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1B – Program History and Future Outlook 

In keeping with its vision, BPD is dedicated to maintaining high levels of performance, and its 

budget is structured to effectively align resources with performance. As a result, Public Debt 

will successfully carry out its mission, which contains three elements: 

Borrow the money needed to operate the federal government: Public Debt will continue to 

enhance the mechanisms for participation by a wide range of investors in its wholesale, 

government agency investment services, and retail programs. 

Wholesale Program: Over the years, Public Debt has dramatically reduced the times required to 

complete marketable securities auctions. It now consistently releases auction results within two 

minutes, plus or minus 30 seconds, of the auction close. This is extremely important because 

shorter and consistent auction releases reduce the time auction bidders are exposed to the risk of 

adverse market movements. Hence, by limiting this risk, the implicit premium associated with 

this period of uncertainty is reduced substantially. 

In FY 2007, BPD will replace its aging auction system to fully integrate the automated 

announcement, auction and issuance of marketable securities, and, at the same time, provide 

greater speed and flexibility to Treasury debt managers in bringing new types of securities to 

market. BPD has expanded its ability to provide contingency processing at three auction 

processing sites and provided a new feature to allow certain large non-primary dealer bidders to 

submit bids in a secure internet environment. The 2008 request includes funding to support and 

maintain the new auction system once this transition is complete. 

Public Debt will continue to improve the processes for submitting auction bids and enhancing 

auction systems. Investments in technology and continuity of operations will continue to ensure 

that payments to investors will be made timely with 100 percent accuracy. Public Debt has 

improved its service to large institutional investors by enhancing the automated bid submission 

system for all competitive auction participants in order to keep it current and make it more 

efficient. 

Government Agency Investment Services Program: Public Debt is committed to continuously 

provide efficient mechanisms to federal, state and local government entities who purchase GAS 

and SLGS securities and borrow from Treasury. The goal is to conduct 80 percent of 

customer-initiated transactions online by FY 2008. While BPD’s pace with this goal is well 

ahead of schedule, the Bureau will remain focused on obtaining the highest level of customer 

self-sufficiency. BPD will also continue to work with the Financial Management Service and 

federal agency customers to simplify their financial reporting and streamline the reconciliation 

processes associated with producing government-wide financial statements. 

Public Debt’s major operational initiative is to consolidate all Government Agency Investment 

Services functions into one automated system to reduce costs and facilitate future enhancements. 

To date, the GAS and borrowings are operating from the same automated platform and the effort 

to merge the SLGS program is underway. 

Retail Program: Public Debt will continue to enhance and support TreasuryDirect, the 

internet-accessed system where all Treasury securities are offered in electronic form. To 

BPD - 3 
accelerate efficiencies involved with all electronic processing, Public Debt will continue to 

encourage customers to convert their paper securities and holdings in the legacy direct-access 

marketable securities system to TreasuryDirect. Planned improvements to TreasuryDirect 

include enhancing technological and operational measures to further secure the system and 

adding the capability to establish accounts for non-individual entities, such as fiduciaries, trusts, 

and organizations. 

Issuing all Treasury securities electronically is a long-term goal for the retail program; however 

the timetable will depend on several factors. One of which, a key challenge, will be to 

communicate with customers about the benefits of dealing directly with Treasury to manage their 

investments online. As the public becomes increasingly comfortable with conducting financial 

business online, Public Debt believes more and more customers will appreciate these benefits. 

Account for the resulting debt: Public Debt is working to improve the clarity, utility and 

availability of federal debt information. The goal is to produce daily public debt financial 

statements by year-end FY 2007. This supports the President’s Management Agenda goal of 

providing accurate and timely financial information. Public Debt will also continue its focus on 

providing financial statements that receive unqualified audit opinions and support improved 

government-wide accounting. Additionally, Public Debt will continue to provide accurate 

accounting data with intragovernmental payments and implement other procedures to reduce and 

ultimately eliminate reconciliation problems in the federal government-wide financial 

statements. 

Provide reimbursable support services to federal agencies: Although this is part of Public Debt’s 

mission statement, appropriated funds are not used. BPD’s Administrative Resource Center, a 

recognized Shared Service Provider (SSP), supplies reimbursable support services to federal 

agencies, generating revenue to pay all organizational expenses. This designation fosters 

customer growth, as agencies will be encouraged by the Office of Management and Budget and 

the General Services Administration to use the efficiencies offered by SSPs, thus allowing 

customers to focus on mission-related activities. For FY 2008, BPD’s Administrative Resource 

Center projects to serve 63 customers with $80 million in revenue. 

BPD also offers investment accounting, training request processing, administrative support to 

Treasury-managed trust funds, and IT services under the Economy Act. All reimbursable support 

services are expected to experience strong growth over the next several years. 

BPD - 4 
Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands 

Appropriation: Administering the Public Debt FTE Amount

FY 2006 Appropriation (P.L. 109-115) 1,390 $179,923

Rescission (P.L. 109-148) 0 (1,769)

FY 2006 Enacted 1,390 $178,154

FY 2007 President's Budget 1,390 $180,789

CR-rate Adjustment (2,173) 

FY 2007 CR-rate 1,390 $178,616

Changes to Base: 

Technical Adjustment to FY 2007 Base due to CR:

Pay Inflation Adjustment 336 

Maintaining Current Levels (MCLs):

Non-Pay Inflation Adjustment 1,666 

Pay Annualization 590 

Pay Inflation Adjustment 3,456 

Total FY 2008 Base 1,390 $184,664

Program Decreases:

Decline in non-recurring DME Spending for SaBRe (233) 

Decline in non-recurring spending for GAISS (563) 

Projected Growth in TreasuryDirect (1,997) 

Program Reinvestment:

E-Commerce Risk Management Program 1,000 

Subtotal FY 2008 Program Changes 0 ($1,793)

Total FY 2008 Request 1,390 $182,871

Adjustments to Request:

User Fees (10,000) 

Subtotal FY 2008 Offsetting Fees and Rescissions 0 (10,000)

Total FY 2008 1,390 $172,871

2A – Budget Increases and Decreases Description 

Adjustments .....................................................................................-$2,173,000 / +0 FTE 

CR-rate Adjustment -$2,173,000 / +0 FTE Adjustment from the FY 2007 President's Budget to 

reach the FY 2007 Continuing Resolution annualized rate (CR-rate). 

Technical Adjustment to FY 2007 Base due to CR ........................+$336,000 / +0 FTE 

Pay Inflation Adjustment +$336,000 / +0 FTE Technical adjustment to FY 2007 Base due to 

CR. 

Maintaining Current Levels (MCLs) ...........................................+$5,712,000 / +0 FTE 

Non-Pay Inflation Adjustment +$1,666,000 / +0 FTE Funds are requested for non-labor related 

items such as contracts, travel, supplies, equipment, and GSA rent adjustments. 

Pay Annualization +$590,000 / +0 FTE Funds are requested for the FY 2008 cost of the January 

2007 pay increase. 

Pay Inflation Adjustment +$3,456,000 / +0 FTE Funds are requested for the proposed January 

2008 pay raise. This includes funds for two compensable days. 

BPD - 5 
Program Decreases .........................................................................-$2,793,000 / +0 FTE 

Decline in non-recurring DME Spending for SaBRe -$233,000 / +0 FTE Funds are reduced for 

the Savings Bond Replacement System due to non-recurring Development Modernization and 

Enhancement spending. 

Decline in non-recurring Spending for GAISS -$563,000 / +0 FTE Funds are reduced for the 

Government Agency Investment Services System due to non-recurring spending. 

Projected Growth in TreasuryDirect -$1,997,000 / +0 FTE Projected reduction in costs due to 

the growth of TreasuryDirect and as investors choose to transfer legacy system holdings to 

TreasuryDirect accounts. 

Program Reinvestment ..................................................................+$1,000,000 / +0 FTE 

E-Commerce Risk Management Program +$1,000,000 / +0 FTE To strengthen security for the 

TreasuryDirect program, the purchase of software licenses and technology will provide for the 

implementation of two-factor authentication. It will also fund the renewal of software licenses, 

enhancement of security features, customer support and the cyclical replacement of security 

tokens. This enhancement will strengthen an E-Commerce program that is critical to effective 

and efficient debt management and further reduction of paper transactions. 

Adjustments to Request ................................................................-$10,000,000 / +0 FTE 

User Fees -$10,000,000 / +0 FTE The account maintenance fees that BPD charges to account 

holders in the Legacy TreasuryDirect system with an account balance of more than $100,000 in 

par value, will be raised from $25 to $100 per year. The increased fees will help to partially 

offset the cost to the Treasury of providing these services. Although the fees may induce some

customers to transfer their account holdings to the new internet-accessed TreasuryDirect system, 

the expected receipts are adjusted to reflect this possibility. 

BPD - 6 
2.2 – Operating Levels Table 

Dollars in Thousands 

Appropriation Title: Administering the Public Debt FY 2006 

Enacted

FY 2007 

President's 

Budget

CR-rate 

Adjustment

FY 2007

CR-rate

Proposed

Reprogrammings

FY 2007 

Proposed 

Operating 

Level

FY 2008 

Requested

Level

FTE 1,390 1,390 1,390 1,390 1,390

Object Classification:

11.1 Full-Time Permanent Positions................................. $83,379 $85,735 - $85,735 - $85,735 $89,149

11.3 Other than Full-Time Permanent Positions.............. 199 205 - 205 - 205 213

11.5 Other Personnel Compensation................................ 4,282 2,883 - 2,883 - 2,883 2,989

11.8 Special Personal Services Payments..................... - - - - - - -

11.9 Personnel Compensation (Total)........................... $87,860 $88,823 $ - $88,823 $ - $88,823 $92,351

12.0 Personnel Benefits.................................................... 22,422 22,549 - 22,549 - 22,549 23,403

13.0 Benefits to Former Personnel................................... 16 16 - 16 - 16 28

21.0 Travel........................................................................ 1,206 1,233 - 1,233 - 1,233 1,732

22.0 Transportation of Things........................................... 7 70 - 70 - 70 85

23.1 Rental Payments to GSA.......................................... 6,120 6,205 - 6,205 - 6,205 6,393

23.2 Rent Payments to Others.......................................... 96 98 (93) 5 - 5 5

23.3 Communications, Utilities, & Misc............................. 16,528 16,892 (1,047) 15,845 - 15,845 15,384

24.0 Printing and Reproduction......................................... 2,051 2,096 (140) 1,956 - 1,956 1,837

25.1 Advisory & Assistance Services................................ 213 218 - 218 - 218 472

25.2 Other Services.......................................................... 24,582 25,162 - 25,162 - 25,162 25,402

25.3 Purchase of Goods/Serv. from Govt. Accts...... 9,039 9,237 (426) 8,811 - 8,811 7,392

25.4 Operation & Maintenance of Facilities................... - - - - - - 742

25.5 Research & Development Contracts......................... - - - - - - -

25.6 Medical Care............................................................. - - - - - - 18

25.7 Operation & Maintenance of Equipment................... 2,125 2,172 - 2,172 - 2,172 2,273

25.8 Subsistence & Support of Persons........................... - - - - - - -

26.0 Supplies and Materials.............................................. 2,462 2,516 (151) 2,365 - 2,365 2,222

31.0 Equipment................................................................. 3,376 3,450 (316) 3,134 - 3,134 3,030

32.0 Lands and Structures................................................ 33 34 - 34 - 34 89

33.0 Investments & Loans................................................ - - - - - - -

41.0 Grants, Subsidies...................................................... - - - - - - -

42.0 Insurance Claims & Indemn...................................... 4 4 - 4 - 4 2

43.0 Interest and Dividends....................................... 14 14 - 14 - 14 11

44.0 Refunds.................................................................... - - - - - - -

Total Budget Authority................................................ $178,154 $180,789 (2,173) $178,616 $ - $178,616 $182,871

Budget Activities:

Wholesale Securities Services $11,812 $11,986 (144) $11,842 - $11,842 $12,474

Government Agency Investment Services 13,255 13,451 (162) 13,289 - 13,289 $13,239

Retail Securities Services 147,529 149,711 (1,799) 147,912 - 147,912 $151,359

Summary Debt Accounting 5,558 5,641 (68) 5,573 - 5,573 $5,799

Total Budget Authority................................................ $178,154 $180,789 (2,173) $178,616 $ - $178,616 $182,871

BPD - 7 
2B – Appropriation Language 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT 

Federal Funds 

Administering the Public Debt 

For necessary expenses connected with any public-debt 

issues of the United States, $182,871,000, of which not to 

exceed $2,500 shall be available for official reception 

and representation expenses, and of which not to exceed 

$2,000,000 shall remain available until 

September 30, 2010 for systems modernization: 

Provided, That the sum appropriated herein from the 

general fund for fiscal year 2008 shall be reduced by not 

more than $10,000,000 as definitive securities issue fees 

and Legacy Treasury Direct Investor Account 

Maintenance fees are collected, so as to result in a final 

fiscal year 2008 appropriation from the general fund 

estimated at $172,871,000. In addition, $70,000 to be 

derived from the Oil Spill Liability Trust Fund, to 

reimburse the Bureau for administrative and personnel 

expenses for financial management of the Fund, as 

authorized by section 1012 of Public Law 101-380. 

2B – Permanent, Indefinite Appropriations 

Reimbursements to the Federal Reserve Banks

Public Law 101-509, 104 Stat. 1394, established a permanent indefinite appropriation to pay 

such sums as necessary to reimburse the Federal Reserve Banks (FRB) for acting as fiscal agents 

of the federal government in support of financing the public debt. A permanent indefinite 

account was established in FY 1992. Claims for reimbursements or services related to this 

account are closely monitored for compliance with the Instructions for Filing Reimbursement 

Claims for Fiscal Agency Services Provided to the Bureau of the Public Debt (current edition). 

The FY 2008 funding to support FRB reimbursements is $95,755,000. 

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Government Losses in Shipment

Public Law 103-329 established a permanent indefinite appropriation to pay such sums as 

necessary to make payments for the replacement of valuables, or the value thereof, lost, 

destroyed, or damaged in the course of United States government shipments. The Government 

Losses in Shipment Act was approved July 8, 1937, to dispense with the necessity for insurance 

by the government against loss or damage to valuables in shipment and for other purposes. The 

Act was amended in 1943 to cover losses resulting from the redemption of savings bonds (for 

example, stolen bonds which were fraudulently negotiated even though the paying agent 

followed identification guidelines established by the Treasury). All authority of the Treasury 

under the Act has been delegated to the Commissioner of the Bureau of the Public Debt. In 

FY 2008, the funding estimated to support payments for the replacement of valuables is 

$500,000. 

2C – Legislative Proposals 

BPD has no Legislative Proposals for FY 2008. 

BPD - 9 
Section 3 – Budget and Performance Plan

3.1 – Appropriation Detail Table 

Dollars in Thousands 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Wholesale Securities Services 98 $11,812 136 $17,987 98 $11,986 98 $11,842 145 $12,474 47.96% 5.34%

Government Agency Investment Services 112 13,255 110 14,599 112 13,451 112 13,289 118 13,239 5.36% -0.38%

Retail Securities Services 1,134 147,529 1,004 132,939 1,134 149,711 1,134 147,912 1,075 151,359 -5.20% 2.33%

Summary Debt Accounting 46 5,558 49 6,431 46 5,641 46 5,573 52 5,799 13.04% 4.06%

Subtotal New Appropriated Resources 1,390 $178,154 1,299 $171,956 1,390 $180,789 1,390 $178,616 1,390 $182,871 0.00% 2.38%

Other Resources:

Offsetting Collections - Reimbursable 64 $16,730 69 $17,456 18 $15,204 18 $15,204 21 $15,732 16.67% 3.47%

Available multi-year/no-year funds 3,654 2,523 3,111 3,111

User Fees 2,793

Subtotal Other Resources 64 $20,384 69 $22,772 18 $18,315 18 $18,315 21 $15,732 16.67% -14.10%

Total Resources Available for Obligation 1,454 $198,538 1,368 $194,728 1,408 $199,104 1,408 $196,931 1,411 $198,603 0.21% 0.85%

1/ Subtotal New Appropriated Resources includes $3,000,000 in projected user fee collections.

2/ Subtotal New Appropriated Resources includes $10,000,000 in projected user fee collections.

to FY 2008

FY 2007

% Change

FY 2007

Resources Availab President's Budget 1/ le for Obligation

FY 2006 FY 2006 FY 2007 FY 2008

Enacted 1/ Obligations CR-rate 1/ Request 2/

3A – Wholesale Securities Services ($12,474,000 from direct appropriations and $1,354,000 

from reimbursable programs): The Wholesale Securities Services activity involves the 

announcement, auction and issue of marketable Treasury bills, notes, bonds and Treasury 

Inflation-Protected Securities. It also provides an efficient infrastructure for the transfer, custody 

and redemption of these securities. Large market participants buy most of Treasury’s marketable 

securities at auction. In FY 2006, Public Debt conducted more than 200 marketable securities 

auctions resulting in the issuance of more than $4 trillion in securities. Treasury’s commercial 

book-entry system holds approximately $4.3 trillion, or 98 percent, of Treasury marketable 

securities. Treasury uses this system to issue most of its marketable debt, make principal and 

interest payments, and support the active secondary market in Treasury securities. It is estimated 

that about $1.23 trillion per day in Treasury securities are transferred among account holders in 

the commercial book-entry system. 

 

This activity directly supports Treasury’s objective of financing the government at the lowest 

possible borrowing cost to taxpayers over time. To help meet this objective, BPD continuously 

improves its auction and debt management systems to provide investors with critical 

auction-related information faster and enhance customers’ abilities to participate easily and 

securely in Treasury auctions. BPD will also seek opportunities in U.S. and global markets to 

listen and learn from holders of its securities and share information with them. The Bureau will 

also educate current and potential investors about Treasury’s debt financing policies, the auction 

process and its securities. 

Another responsibility the Bureau has is regulating the government securities market. Public 

Debt administers Treasury’s regulations that provide investor protection and maintain the 

integrity, liquidity, and efficiency in the government securities market under the Government 

Securities Act of 1986. BPD also administers the rules for Treasury’s securities auctions and 

buybacks and prescribes provisions for collateral eligibility and valuation. One of its recent 

BPD - 10 
regulatory initiatives was to rewrite, in plain language, the Uniform Offering Circular, which 

explains Treasury’s marketable securities auction rules. 

Other Resources: 

Reimbursements totaling $1,354,000 are collected for providing: administrative and IT support 

for the Administrative Resource Center, Public Key Infrastructure (PKI) and Secure Socket 

Layer (SSL) operations for Treasury and training request processing for the Alcohol and 

Tobacco Tax and Trade Bureau. 

3.2.1 – Wholesale Securities Services Budget and Performance Plan 

Dollars in Thousands 

Wholesale Securities Services Budget 

Activity

Includes Strategic Objective F4B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $12,064 $11,905 $11,812 $11,986 $12,474 

 Other Resources 274 666 1,189 1,077 1,354 

Total Operating Level $12,338 $12,571 $13,001 $13,063 $13,828

Human Resources

 Appropriated FTE 92 92 98 98 145 

 Other FTE 0 0 3 0 0 

Total FTE (direct and reimbursable) 92 92 101 98 145

Wholesale Securities Services Budget 

Activity

Includes Strategic Objective F4B

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline $133,683 $219,114 $159,580

Actual $126,828 $148,926

Cost per debt financing operation ($) (E) 

Met Yes No

Target 95% 95% 95% 95% 95% 

Actual 99.53% 95% 100%

Percent of auction results released in 2 minutes 

+/- 30 seconds (%) (Oe) 

Met Yes Yes Yes

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

Description of Performance: In FY 2006, Public Debt released auction results within two 

minutes, plus or minus 30 seconds, 100 percent of the time, surpassing its performance target of 

95 percent. In addition, in FY 2007, BPD will replace its aging auction system to fully integrate 

the automated announcement, auction and issuance of marketable securities and provide greater 

speed and flexibility to Treasury debt managers in bringing new types of securities to market. 

BPD has also expanded its ability to provide contingency processing at three auction processing 

sites and provided a new feature to allow certain large non-primary dealer bidders to submit bids 

in a secure internet environment. 

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3B – Government Agency Investment Services ($13,239,000 from direct appropriations and 

$3,068,000 from reimbursable programs): The Government Agency Investment Services 

program supports federal, state and local government agency investments in non-marketable 

Treasury securities as well as federal agency borrowing from Treasury. 

Public Debt offers two major non-marketable special purpose investment programs to 

government agencies. Government Account Series (GAS) securities are issued only to federal 

agencies with statutory investment authority. There are currently about 230 trust and investment 

funds held by some 75 agencies. For 18 of the funds, Public Debt also maintains the investment 

accounts and performs additional administrative functions on behalf of the Secretary of the 

Treasury. These additional functions include processing receipts into and transfers out of the 

funds to the related federal program agencies for the purpose of administering the underlying 

programs that are supported by the trust funds. Some of the more recognizable federal trust 

funds are the four Social Security and Medicare Funds, as well as the Unemployment and 

Highway Trust Funds. With more than $3.76 trillion in investments, federal government and 

other entities’ holdings of GAS securities comprise approximately 44 percent of the public debt 

outstanding. 

State and Local Government Series (SLGS) securities are issued to state and local government 

entities across the nation. At approximately $250 billion outstanding, the SLGS program is 

important to over 6,600 state and local government entities that use these securities to help 

comply with provisions of the Internal Revenue Code. 

BPD also accounts for and reports on the principal borrowings from and repayments to Treasury 

for approximately 80 funds managed by other federal agencies, as well as the related interest due 

to Treasury. These agencies are statutorily authorized to borrow from Treasury to make loans 

for a broad range of purposes, such as education, housing, farming, and small business support. 

The funds hold roughly $228 billion in loans and loan guarantees. These federal agencies can 

conduct their principal transactions online via the Government-Wide Accounting system. The 

corresponding interest transactions are also processed online through the Intra-governmental 

Payment and Collection system. 

At the federal level, Public Debt’s services in this activity also directly assist customers in 

producing timely and accurate financial information that contributes to the reliability and 

usefulness of the government-wide financial statements. Instant access to account information 

has significantly simplified reconciliation and audit confirmation efforts across the country and 

assisted SLGS purchasers in complying with the Internal Revenue Service’s requirements related 

to the issuance of tax exempt securities. 

 

Other Resources: 

Reimbursements totaling $3,068,000 are collected for providing: administrative and IT support 

for the Administrative Resource Center, Public Key Infrastructure (PKI) and Secure Socket 

Layer (SSL) operations for Treasury, training request processing for the Alcohol and Tobacco 

Tax and Trade Bureau, investment accounting performed on behalf of the Secretary of the 

Treasury, and investment accounting services for the Department of Housing and Urban 

Development and the Securities and Exchange Commission.

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3.2.2 – Government Agency Investment Services Budget and Performance Plan 

Dollars in Thousands 

Government Agency Investment 

Services Budget Activity

Includes Strategic Objective F4B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $13,756 $13,360 $13,255 $13,451 $13,239 

 Other Resources 2,530 3,278 3,634 3,101 3,068 

Total Operating Level $16,286 $16,638 $16,889 $16,552 $16,307

Human Resources

 Appropriated FTE 105 105 112 112 118 

 Other FTE 5 17 17 11 14 

Total FTE (direct and reimbursable) 110 122 129 123 132

Government Agency Investment Services 

Budget Activity

Includes Strategic Objective F4B

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline $90.15 $64.5 $62.5

Actual $88.74 $62.64

Cost per federal funds investment transaction ($) 

(E) 

Met Yes Yes

Target Baseline 65% 75% 80% 

Actual 72.7% 97.03%

Percentage of Government Agency customer 

initiated transactions conducted online (%) (Oe) 

Met Yes Yes

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

Description of Performance: Public Debt has established a long-term goal to expand automation 

to its customers. BPD will enhance online services provided to federal, state and local 

government customers so that Public Debt will meet its long-term goal of conducting 80 percent 

of customer-initiated transactions online by the end of FY 2008. Currently, Public Debt receives 

more than 95 percent of all investment transactions online. These results are due to three factors. 

First, all loans receivable transactions are conducted using the Government-Wide Accounting 

application. Second, regulatory changes effective as of August 2005 require investors in state 

and local government securities to perform all investment transactions online using the SLGSafe 

internet application. Finally, the Federal Investments Program made a comprehensive effort to 

convert and train its user community to conduct investment transactions through the FedInvest 

internet application. 

3C – Retail Securities Services ($151,359,000 from direct appropriations, including 

$10,000,000 from user fee collections, and $10,768,000 from offsetting collections and 

reimbursable programs): Public Debt’s Retail Securities Services program serves more than 

50 million retail customers who hold marketable and savings securities directly with Treasury in 

support of the government’s financing needs. The focus of this program is to deliver Treasury 

securities services at the lowest reasonable operational cost through the internet-accessed 

TreasuryDirect system. TreasuryDirect offers all Treasury securities available to the public—

Series EE and I savings bonds and Treasury bills, notes, bonds, and TIPS—in book-entry form. 

By enabling investors to manage their savings bond and marketable securities holdings online, 

Public Debt will serve customers more effectively and manage resources more efficiently. 

BPD - 13 
To accelerate the efficiencies that will result from electronic investing, Public Debt is 

encouraging customers to convert their holdings to TreasuryDirect. The potential for 

conversions is significant—there are over 700 million paper savings bonds and nearly 400,000 

accounts in the legacy marketable securities system. The conversion effort will be ongoing over 

a number of years. 

Throughout this multi-year push toward book-entry and all-electronic processing, Public Debt 

will remain committed to supporting customers of legacy programs but will also actively 

encourage them to move to TreasuryDirect. These efforts will position Treasury to eliminate 

paper securities and replace the legacy marketable system when the time is right. These changes 

build on a tradition of continuous operational improvement and position Public Debt to offer 

high quality and easy-to-use investment services to millions of retail customers. 

Other Resources: 

Offsetting collections totaling $10,000,000 are collected for definitive securities issue and 

Legacy TreasuryDirect Investor Account maintenance fees, while $10,768,000 in 

reimbursements are collected for providing: administrative and IT support for the Administrative 

Resource Center, Public Key Infrastructure (PKI) and Secure Socket Layer (SSL) operations for 

Treasury, training request processing for the Alcohol and Tobacco Tax and Trade Bureau, and 

computer matching for the Social Security Administration. 

3.2.3 – Retail Securities Services Budget and Performance Plan 

Dollars in Thousands 

Retail Securities Services Budget 

Activity

Includes Strategic Objective F4B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $145,419 $147,298 $147,529 $149,711 $151,359 

 Other Resources 3,260 8,557 15,002 13,630 10,768 

Total Operating Level $148,679 $155,855 $162,531 $163,341 $162,127

Human Resources

 Appropriated FTE 1,092 1,060 1,134 1,134 1,075 

 Other FTE 0 0 42 7 7 

Total FTE (direct and reimbursable) 1,092 1,060 1,176 1,141 1,082

Retail Securities Services Budget Activity Includes Strategic Objective F4B

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline $7.75 $4.73 $4.57

Actual $8.51 $4.97

Cost per TreasuryDirect assisted transaction ($) 

(E) 

Met Yes Yes

Target Baseline $2.99 $2.21 $1.79 

Actual $3.43 $3.06

Cost per TreasuryDirect online transaction ($) 

(E) 

Met Yes No

Target 90% 90% 90% 90% 90%

Actual 92.5% 88.7% 98%

Percentage of retail customer service 

transactions completed within 12 business days 

(%) (Oe) Met Yes No Yes

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

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Description of Performance: In FY 2006, BPD processed 98 percent of retail customer service 

transactions within 13 business days, surpassing its performance target of 90 percent. For 

FY 2007, the Bureau’s goal is to complete 90 percent of retail customer service transactions 

within 12 business days and strive toward a long-term goal to complete 90 percent of retail 

customer service transactions within ten business days by FY 2010. Efficiencies gained from

improved work processes and an increase in electronic transactions will allow Public Debt to 

meet these goals. 

3D – Summary Debt Accounting ($5,799,000 from direct appropriations and $542,000 from 

reimbursable programs): The Summary Debt Accounting program accurately accounts for and 

reports timely on the outstanding public debt and related interest expenses. The program

provides daily information on the balance and composition of the public debt, and summary level 

accounts represent the control totals for dozens of subordinate investment systems. 

Each year, Public Debt reconciles more than $72 trillion in securities transactions reported from

numerous systems to cash flowing in and out of the federal government. BPD’s summary level 

accounting system provides detailed financial information on the more than $8 trillion public 

debt and associated interest expense for publication in the annual Financial Report of the United 

States Government, Treasury’s Performance and Accountability Report, and the Schedules of 

Federal Debt Managed by the Bureau of the Public Debt. 

The Bureau publishes information on the balance and composition of the public debt in the 

Monthly Statement of the Public Debt of the United States on its website. Strategically, BPD’s 

direction is to make the Schedules of Federal Debt and other related financial data available on a 

daily basis. 

Public Debt has always been committed to maintaining strong accounting controls to ensure the 

integrity of operations and the accuracy of the information provided to the public. The Bureau 

has consistently received unqualified audit opinions on the Schedules of Federal Debt, which 

presents details supporting the largest single liability on the government-wide financial 

statement. 

Other Resources: 

Offsetting collections and reimbursements totaling $542,000 are collected for providing: 

administrative and IT support for the Administrative Resource Center, Public Key Infrastructure 

(PKI) and Secure Socket Layer (SSL) operations for Treasury and training request processing for 

the Alcohol and Tobacco Tax and Trade Bureau. 

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3.2.4 – Summary Debt Accounting Budget and Performance Plan 

Dollars in Thousands 

Summary Debt Accounting Budget 

Activity

Includes Strategic Objective F4D

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $5,788 $5,602 $5,558 $5,641 $5,799 

 Other Resources 131 143 559 507 542 

Total Operating Level $5,919 $5,745 $6,117 $6,148 $6,341

Human Resources

 Appropriated FTE 44 44 46 46 52 

 Other FTE 0 0 2 0 0 

Total FTE (direct and reimbursable) 44 44 48 46 52

Summary Debt Accounting Budget Activity Includes Strategic Objective F4D

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline $11.59 $10.34 $10.49

Actual $12.62 $10.96

Cost per summary debt accounting transaction 

($) (E) 

Met Yes Yes

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

Description of Performance: Public Debt established an efficiency measure to track the cost per 

transaction of performing Summary Debt accounting. Public Debt accounts for and reports on 

all financial activity related to the public debt of the United States. The transactions being 

tracked are those that must be accounted for to calculate the amount of public debt outstanding 

and interest paid on the public debt. These transactions include, for example, issues, 

redemptions, and interest payments on all Treasury securities. Lower costs per item are driven 

by transaction volumes increasing as a result of continued efforts to convert customers from

paper to electronic holdings. Volumes were assumed constant in FY 2008, resulting in an 

estimated cost per item of $10.49. 

For detailed information about each performance measure, including definition, verification and 

validation, please go to: http://www.treas.gov/offices/management/dcfo/accountabilityreports/2006-par/Part_IV_Appendices.pdf

BPD - 16 
Section 4 – Supporting Materials 

4.1 – Human Resources Table 

Changes in Full Time Equivalents

Direct FTE FY 2006 FY 2007 FY 2008

Base: Year-end Actual from Prior Year 1,206 1,299 1,390

Increases:

Reason #1:

Increase in direct FTE due to realignment of

core administrative and policy functions back 

into Public Debt from the Franchise Fund. 93

Reason #2:

Increase in direct FTE due to realizing a full 

year of FTE reporting for employees hired late 

in FY 2006. 91

Subtotal, Increases 93 91 0

Decreases:

Subtotal, Decreases 0 0 0

Year-end Actual/Estimated FTEs 1,299 1,390 1,390

Net Change from prior year SOY to budget year EOY 91

4A – Human Capital Strategy Description 

Public Debt’s strategic management of human capital is consistent with its mission, vision, and 

priorities and supports not only the President’s Management Agenda, but also Treasury’s 

strategic goal to Manage the U.S. Government’s Finances Effectively. 

Public Debt has high expectations of all employees and recognizes the value of their 

contributions. BPD’s performance appraisal system is supplemented with specific expectations 

appropriate to the individual employee and the Bureau’s current priorities and strategic 

initiatives. As a result, employees know what is expected of them and how these expectations 

relate to the mission, objectives, and performance goals. Public Debt’s appraisals effectively 

distinguish between high and low levels of performance. 

Leadership training is important at Public Debt. BPD offers extensive in-house training and 

takes advantage of many opportunities to use the Office of Personnel Management’s 

Management Development Centers to develop leadership competencies in leads, supervisors, 

managers, and executives. Senior-level employees receive training through the Treasury 

Executive Institute, the Treasury Executive Leadership Program, and the Federal Executive 

Institute. 

Human capital initiatives, including succession planning, are an important part of Public Debt’s 

Strategic Plan. The Bureau has a Management Candidate Development Program and a Senior 

Executive Service Candidate Development Program that were designed and implemented to 

BPD - 17 
provide Public Debt with a trained, capable pool of managers and executives to fill future 

vacancies. All of these programs use Individual Development Plans, mentoring, shadowing, 

position exchanges, and skills development to build leadership/management skills. 

Public Debt has a comprehensive recruitment program in place to close skill gaps. BPD attends 

approximately 25 career fairs per year. Much of its recruitment occurs at colleges and 

universities with a diverse population or at diversity-specific career fairs. To further its 

recruiting efforts, Public Debt is also experimenting with more non-traditional recruiting 

methods such as diversity-specific internet sites to attract candidates. For example, sites such as 

HBCUConnect.com are making it easier for Public Debt to reach out and specifically target 

students and alumni of Historically Black Colleges and Universities. BPD will continue to refine 

its efforts and look for more opportunities to attract and retain diversity candidates in an effort to 

establish a culturally diverse workforce. 

Public Debt uses the full realm of pay flexibilities to recruit and retain high quality candidates 

with the skills necessary to accomplish its mission. Specifically, Public Debt uses superior 

qualifications appointments, student loan repayments, and recruitment and retention incentives. 

BPD also uses special employment programs to hire quality candidates. The Bureau has been 

very successful using the Federal Career Intern Program, Student Career Experience Program, 

and Veterans’ Recruitment Act to provide a source of highly qualified applicants. The Bureau’s 

recognition of the need for a balanced family and work life makes it an attractive employer. The 

use of Flexi-time, Alternative Work Schedule, and Flexi-place schedules assist BPD in recruiting 

and retaining highly talented individuals. 

Public Debt has identified three Mission Critical Occupations (MCOs): Customer Service 

Specialist (CSS), Accountant, and Financial Systems Analyst. Although BPD’s workforce will 

remain relatively stable over the next five years, the retirement eligibility among the CSS 

positions is relatively high compared to its other MCOs. To offset the potential retirement issue 

among the CSS positions, BPD recruits applicants with basic communication and customer 

service skills. Once on board, these basic skills, coupled with specific training, ensure a ready 

source of qualified employees. Public Debt’s workforce analysis indicates that as employees 

retire, it will continue to have a sufficient pool of internal candidates to fill the CSS positions. 

Public Debt believes that training is crucial. BPD determines the readiness of its workforce, 

including MCOs, through skills gap assessments. BPD works with focus groups to assess the 

training needs necessary to keep employee skills current and to develop the future training 

opportunities needed to prevent skills gaps. These focus groups were developed to ensure that 

Public Debt’s employees are among the best trained in the government and are able to stay 

abreast of new technologies affecting their work. These groups concentrate on broad ranging 

disciplines including: Accounting, Administration and Analysis, Computer End-Users, 

Customer Service and Communication, Management, Information Technology, and Human 

Resources. 

BPD - 18 
4.2 – Summary of IT Resources Table 

Dollars in Millions

Information Technology Investments 

FY 2006 FY 2007 

Major IT Investments Budget Activity

Identify the Program that the System is

Aligned to

Operating 

Plan Obligations

Operating

Plan Enacted 

Invest One Government Agency Investment Services Administering the Public Debt $1.7 $1.7 $1.8 5.9% - 

Oracle Federal Financials Systems

Wholesale Securities Services, Retail Securities Services, Government Agency Investment Services, Summary Debt Accounting

Administering the Public Debt 2.9 2.9 3.3 13.8% 4.0 

Public Debt Accounting and Reporting System (PARS) Summary Debt Accounting Administering the Public Debt 2.0 2.0 2.0 0.0% 2.1 

SaBRe Retail Securities Services Administering the Public Debt 4.2 4.2 4.3 2.4% 4.9 

Special Purpose Securities System 

(SPSS) Government Agency Investment Services Administering the Public Debt 1.7 1.7 1.8 5.9% - 

TreasuryDirect Retail Securities Services Administering the Public Debt 4.4 4.4 5.0 13.6% 5.2 

Government Agency InvestmentServices System (GAISS) 1/ Government Agency Investment Services Administering the Public Debt - - - N/A 5.4 

Treasury Automated Auction Processing System (TAAPS) Wholesale Securities Services Administering the Public Debt and Reimbursements to Federal Reserve Banks 2.5 2.5 44.9 N/A 47.1 

Subtotal, Major IT Investments $19.4 $19.4 $63.1 225.2% $68.8 

Non-Major IT Investments $16.4 $16.4 $9.5 -42.3% $9.7 

Infrastructure Investments $24.6 $24.6 $25.4 3.3% $29.9 

Enterprise Architecture $0.0 $0.3 $0.4 27.7% $0.6 

Total IT Investments $60.4 $60.7 $98.3 62.0% $109.0 

1/ InvestOne and SPSS have merged into GAISS beginning FY 2007. 

FY 2005 % Change 

from FY05 

Obligations to 

FY06

% 

fro

BPD - 19 
4B – Information Technology Strategy 

Public Debt's major IT systems directly relate to and support its four budget activities. The goals 

of each of the four budget activities are specifically tied to the Bureau’s strategic and annual 

performance plans, and fully support Treasury’s long-term direction. Because BPD’s operations 

have been highly automated, these systems are the primary means by which the Bureau achieves 

objectives and addresses major challenges. 

Public Debt has developed and continually enhances systems to process a wide range of 

servicing transactions, initiate trillions of dollars in customer payments, and account for the 

public debt at both the detail and summary accounting levels. By delivering services to 

customers online and automating work processes, these major IT investments support BPD’s 

vision of responsible, effective government through commitment to service, efficient operations, 

openness to change, and values-based behavior. These major IT investments represent the most 

cost-effective means to conduct borrowings and deliver securities services to investors. 

The Bureau’s IT portfolio of mission critical systems is comprised of certified and accredited 

applications. Systems modification expenses are being incurred for the continued operation of 

TreasuryDirect, which will eventually serve as a replacement for other, more expensive, systems. 

To ensure continuity of operations for these significant technology investments, Public Debt 

partnered with the Financial Management Service for the use of one of their geographically 

remote processing centers for hot site contingency. Data is pre-staged and updated in near real 

time, and recoverability at this location has been fully tested. 

BPD - 20 
4.3 – PART Evaluation Table 

PART Name: Administering the Public Debt

Year PARTed: FY 2005

Rating: Effective

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

1. Continue to improve annual performance measures.

Public Debt identified three new long-term goals that will continue its long-standing tradition of operational 

efficiency and effectiveness.

2. Identify new long-term goals to improve efficiency and effectiveness.

For a complete list of PART results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html

BPD - 21