Treasury Franchise Fund

Program Summary by Budget Activity

Dollars in Thousands

 FY 2022 FY 2023 FY 2024 FY 2023 to FY 2024

Budget Activity Actuals Revised 

Estimate Estimate $ Change % Change

Treasury Shared Services Program $437,060 $338,400 $358,661 $20,261 5.99%

Centralized Treasury Administrative Services $138,866 $160,151 $166,058 $5,907 3.69%

Administrative Services $224,844 $225,227 $238,664 $13,437 5.97%

Information Technology Services $221,461 $230,390 $246,817 $16,427 7.13%

Subtotal, Treasury Franchise Fund $1,022,231 $954,168 $1,010,200 $56,032 5.87%

Recovery from Prior Years $23,269 $13,000 $13,000 $0 0.00%

Unobligated Balances Brought Forward $123,571 $137,008 $125,000 ($12,008) -8.76%

Total Program Operating Level $146,840 $150,008 $138,000 ($12,008) -8.00%

Reimbursable FTE 2,047 2,185 2,233 48 2.20%

Total Full-time Equivalents (FTE) 2,047 2,185 2,233 48 2.20%

*The Financial Management Administrative Support Service and Shared Services Programs, as denoted in the President’s budget is also

referred to as the Administrative Services and Treasury Shared Services Program, respectively. 

Summary

The FY 2024 Treasury Franchise Fund’s (TFF) estimate reflects the revised estimates for FY 

2023 along with new funding estimates for FY 2024. The revised estimates in FY 2023 for 

Administrative Resource Center Administration (ARC Admin.) includes an increase in customer 

project and system investments to achieve mission and priorities. The revised estimates also 

include a reduction in staffing resources needed in Administrative Resource Center 

Administration Information Technology’s (ARC IT) planned operations and maintenance 

support because of a revision to staffing methodology to align projections more closely to 

budgetary resources. Additionally, the FY 2023 revised estimates include an increase in Treasury 

Shared Services Program (TSSP) resources to facilitate the modernization of the Internal 

Revenue Service (IRS) Human Resources IT systems and improve employee experience aligned 

with delivery of commodity applications through Treasury’s enterprise shared service offerings. 

In FY 2024, TSSP will continue to support efforts in cybersecurity with the additional 

transferred operations and maintenance costs for initiatives developed under the Cybersecurity 

Enhancement Account (CEA). These cybersecurity initiatives will be deployed and 

implemented as a shared service to support enterprise-wide services and capabilities to 

strengthen the cybersecurity posture across the components of the Department of Treasury. 

Additionally, the Departmental Offices plans to improve hiring and recruitment in FY 2024 to 

make investment in Human Resources and Human Capital. Also, the Centralized Treasury 

Administrative Services (CTAS) program will continue to invest into resources to maintain the 

Treasury’s owned spaces (Main Treasury Building and Freedman’s Bank Building). 

In FY 2024, ARC Admin’s priorities include a balance of continuous improvement, strategic 

investments in solutions of the future through the Financial Management Quality Service 

Management Office (FM QSMO) marketplace and continuing to increase federal agency 

adoption of services. ARC IT’s FY 2024 objectives are centered around consistently 

implementing, optimizing, securing, and scaling technology and services from end-to-end in 
alignment with federal technology priorities, including Executive Order 14028, Improving the 

Nation’s Cybersecurity and subsequent OMB Memoranda. 

Budget Highlights

Dollars in Thousands

Treasury Franchise Fund FTE Amount

FY 2023 Estimate

 

2,209 $919,111 

Adjustment to FY 2023 Estimate (24) 35,057 

Support Customer Projects (ARC Admin) $14,146

Revised Estimates and IT Maintenance (ARC IT) (28) $8,720

IRS Human Resources Information Technology Modernization (TSSP) 4 $12,191

FY 2023 Revised Estimate

 

2,185 $954,168 

Changes to Base:

Maintaining Current Levels (MCLs): $28,096

Pay Annualization (2023 4.6% average pay raise) $3,349

Pay Raise (5.2% average pay raise) $11,488

Non-Pay $13,259

Subtotal Changes to Base $28,096

FY 2024 Current Services

 

2,185 $982,264 

Program Changes: 

Program Increases: 48 $27,936

IRS Human Resources Information Technology Modernization (TSSP) 5 $9,295

Cyber Enhancement Act Investments in Shared Services (TSSP) 8 $1,600

IT Systems Modernization and Program Support (TSSP) $800

Common Approach to Identity Assurance (ARC IT) 2 $9,673

Existing and New Customer Growth (ARC Admin) 26 $4,825

Facilities and Office Infrastructure (CTAS) 3 $755

Improve Hiring and Recruitment Programs (CTAS) 3 $736

Promote Evidence Act and Treasury Data Strategy (CTAS) 1 $252

Subtotal Program Changes 48 $27,936 

FY 2024 Estimate 2,233 $1,010,200 

Budget Adjustments

Adjustments to FY 2023 Original Estimate ................................ +$35,057,000/ -24 FTE

Support Customer Projects (ARC Admin) +$14,146,000 / +0 FTE 

The revised ARC Admin FY 2023 includes adjustments to support customer projects and system 

investments to meet the demands of the customers. Without these resources, customers will 

experience delays in projects, impacting mission success and other federal priorities. 

Revised Estimates and IT Maintenance (ARC IT) +$8,720,000 / -28 FTE

Revised FY 2023 estimates includes adjustments to reflect declines in projected staffing levels 

and anticipated vacancies along with increased cost in non-labor related to ongoing maintenance 

costs for computing solutions. 
IRS Human Resources Information Technology Modernization (TSSP) +$12,191,000 / +4 FTE

The revised TSSP FY 2023 estimate includes adjustments to modernize the IRS HRIT system 

and improve employee experience aligned with delivery of commodity applications through 

TSSP. The IRS HRIT portfolio includes approximately 100 applications, 100 workflows and 

multiple supplemental Excel and Access-based processes. This will be a multi-year effort that 

will start this effort in FY 2023. 

Maintaining Current Levels (MCLs)......................................... +$28,096,000 / +0 FTE 

Pay Annualization (4.6%) +$3,349,000 / +0 FTE: 

Funds are required for annualization of the January 2024 4.6% average pay raise. 

Pay Raise (5.2%) +$11,488,000 / +0 FTE: 

Funds are required for a 5.2% average pay raise in January 2024. 

Non-Pay +$13,259,000 / +0 FTE 

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Program Increases.............................................................. +$27,936,000 / +48 FTE

IRS Human Resources Information Technology Modernization (TSSP) +$9,295,000/ +5 FTE 

Treasury will increase spending to continue to modernize the IRS HRIT system and improve 

employee experience aligned with delivery of commodity applications through TSSP. The IRS 

HRIT portfolio includes approximately 100 applications, 100 workflows and multiple 

supplemental Excel and Access-based processes. FY 2024 will be the second year of this effort 

that initially started in FY 2023. 

Cyber Enhancement Act Investments in Shared Services (TSSP) +$1,600,000 / +8 FTE

The TSSP supports the transition of additional O&M costs from CEA for cybersecurity 

enhancements and capabilities that will be deployed enterprise wide to be in accordance with 

Executive Order 14028 Improving the Nation’s Cybersecurity and subsequent OMB 

Memoranda. The investments will be made in the following Cyber Categories: 

• Other Cybersecurity Priorities (+$1,000,000 / +5 FTE) 

• Cloud Adoption (+$400,000 / +2 FTE)

• Zero Trust Architecture (+$200,000 / +1 FTE) 

IT Systems Modernization and Program Support (TSSP) +$800,000 / +0 FTE 

Treasury will increase spending for program support for the IT system modernization for 

enhancements to the Technology Business Management (TBM) to improve the IT cost 

transparency across the Department. 

Common Approach to Identity Assurance (ARC IT) +$9,673,000 / +2 FTE 

ARC IT increased funding supports the growing Common Approach to Identity Assurance 

(CAIA) that will assist with implementing, optimizing, securing, and scaling technology and 

services from end-to-end in alignment with federal technology priorities, including Executive 

Order 14028, Improving the Nation’s Cybersecurity and subsequent OMB Memoranda. 
Existing and New Customer Growth (ARC Admin) +$4,825,000 / +26 FTE 

FY 2024 estimate includes strategic investments in solutions and continuous improvements of 

the Financial Management Quality Service Management Office (FM QSMO) to support 

customer growth consistent with FM QSMO’s goal to increase the number of agency 

subcomponents using common financial management solutions by 25 percent. ARC Admin will 

continue to support the marketplace for scalable growth by simplifying the delivery of complex 

financial management services. 

Facilities and Office Infrastructure (CTAS) +$755,000 / +3 FTE 

This request also provides funding for a repairs and improvements account within Departmental 

Offices. Historic office buildings like Treasury’s are expected to have costs near $3 per square 

foot per annum. Based on that benchmark the costs for maintaining buildings of the size of Main 

Treasury (MT) and Freedman’s Bank Building (FBB) Treasury Facilities would be 

approximately $2 million in funding annually. Treasury’s current funding level is approximately 

$450,000. 

Improve Hiring and Recruitment Programs (CTAS) +$736,000 / +3 FTE 

Increase spending for additional staffing in Human Resources and Human Capital to improve the 

hiring and recruitment efforts for Departmental Offices in the Office of Terrorism and Financial 

Intelligence , International Affairs and the Committee of Foreign Investment in the United 

States. 

Promote Evidence Act and Treasury Data Strategy (CTAS) +$252,000 / +1 FTE 

FY 2024 estimates include additional staff in the Office of the Chief Data Officer (OCDO) to 

engage with the Departmental Offices, data owners and staff to modernize data infrastructure, 

build and manage the enterprise data inventory, and identify and pursue priority data sharing 

opportunities. This investment will also enable OCDO staff to lead analytics efforts for high 

priority projects and programs, including long-range analytic studies aligned to the 

Administration and Learning Agenda priorities. 

Legislative Proposals 

The TFF has no legislative proposals. 
Performance Highlights

 

Description of Performance

The TSSP annual effective spend rate provides insight to the financial management and 

oversight of the TSSP programs. It measures how much of the resources collected from 

customers are being obligated for service delivery in the fiscal year. This measure captures the 

efficient use of resources by the service providers. In FY 2022, 93 percent of the funds collected 

from customers for the shared services was obligated, which was slightly below the 96 percent 

target rate set for the fiscal year. The target will remain at 96 percent for FY 2023 and FY 2024. 

In FY 2022, the TSSP survey results yielded a 73 percent overall customer satisfaction rating, 

which is down from 80 percent target. Strategic partnerships with TSSP governance councils, 

meeting monthly with Treasury budget directors and the use of the TSSP Roadshows provides 

expanded customer engagement opportunities to the various stakeholders to better communicate 

the expected changes to program budgets and the impact to their upcoming service level 

agreements. Treasury will continue to build on these transparency initiatives to improve the 

customer satisfaction scores. The target for this measure is set at 80 percent for both FY 2023 

and 2024. 

The CTAS FY 2022, the annual effective spend and customer satisfaction rates were 96 and 78 

percent respectively. The annual effective spend target was met however the customer 

satisfaction score was slightly below the FY 2022 target score of 80. The targets set for the 

annual effective spend rate and customer satisfaction measures are mirrored after the TSSP target 

to maintain consistency in overall financial management of the two shared services providers 

within Departmental Offices. The targets set in both FY 2023 and 2024 is 96 and 80 percent, for 

the annual effective spend rate and customer satisfaction measures respectively.

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2022 FY 2023 FY 2024

Treasury Shared Services Average Cost per FTE N/A $1,463.50 $1,460.00 $1,580.30 $1,951.00 $1,710.50 $1,710.50 DISC

Treasury Shared Services Annual Effective Spend Rate N/A 97% 96% 96% 93% 96% 96% 96%

Treasury Shared Services Customer Satisfaction N/A 75% 80% 80% 73% 80% 80% 80%

Centralized Treasury Administrative 

Services Annual Effective Spend Rate N/A 98% 94% 96% 96% 96% 96% 96%

Centralized Treasury Administrative 

Services Customer Satisfaction N/A 75% 75% 80% 78% 80% 80% 80%

Administrative Support Services Customer Unmodified Audit Opinions [%] NA 100% 100% 100% 100% 100% 100% 100%

Administrative Support Services Percentage of shared services service level agreement 

performance metrics met or exceeded [%] NA 89% 87% 94% 97% 94% 94% 94%

Administrative Support Services Customer Satisfaction with ARC Admin Services [%] 90% 86% 91% 93% 90% 80% 80% 80%

Information Technology Services Fiscal IT Hosting – Percentage of Time Service is 

Operational (Uptime Excluding Planned Maintenance) 99.2 99.8 99 DISC DISC DISC DISC DISC

Information Technology Services

Number of engagements in strategic sourcing, to 

include new IT customers, new scope of work for 

existing customers, or new FITARA compliant 

contracts available beyond Fiscal Service [#]

2 1 3.3 DISC DISC DISC DISC DISC

Information Technology Services % of IT Portfolio (TFF) Software and Hardware 

Currency N/A N/A N/A B 76% 75% 75% 85%

Information Technology Services % of On-Premise Target Service Level Agreements Met N/A N/A N/A B 94% 80% 80% 80%

Target Target

Key: B - Baseline; DISC - Discontinued

Budget Activity Performance Measure Actual Actual Actual Actual Actual Target
In FY 2022, ARC Admin received an unmodified opinion on franchise operations for the 20th 

consecutive year and met its performance target of 100 percent of customer unmodified audit 

opinions (33). By meeting this metric consistently year after year, ARC has improved public 

confidence in federal stewardship, operations, and reporting.

In FY 2022, ARC IT established a baseline for software/hardware currency and on-premises 

target service level agreements met. The goal of these new measures is to reduce the use of End 

of Life technology, which in turn further minimizes technical debt and risk for our customers, 

and measure how well technical teams are performing and closing out the requests and incidents. 

The FY 2023 and 2024 targets reflect operational commitments to customers and allows room 

for improvement. 

This year, TFF is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2025 budget.