Treasury Franchise Fund 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2020 to FY 2021 

Budget Activity 

Actuals Revised 

Estimate 

Estimate $ Change % Change 

Treasury Shared Services Program 284,298 299,891 314,318 14,427 4.8% 

Centralized Treasury Administrative Services 121,771 135,203 145,848 10,645 7.9% 

Administrative Support Services 220,180 194,856 211,308 16,452 8.4% 

Information Technology Services 222,547 217,473 221,670 4,197 1.9% 

Subtotal, Treasury Franchise Fund $848,796 $847,423 $893,144 $45,721 5.4% 

Offsetting Collections - Reimbursable 838,745 806,022 857,079 51,057 6.3% 

Recovery from Prior Years 9,472 24,016 22,815 (1,201) -5.0% 

Unobligated Balances Brought Forward 211,208 210,629 193,244 (17,385) -8.3% 

Total Program Operating Level $1,059,425 $1,040,667 $1,073,138 $32,471 3.1% 

Reimbursable FTE 2,069 2,154 2,219 65 3.0% 

Total Full-time Equivalents (FTE) 2,069 2,154 2,219 65 3.0% 

*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 Treasury Franchise Fund (TFF) supports effective administrative and information 

technology services through commitment to service, efficient operations, openness to change, 

and values-based behavior. The TFF achieves cost savings leveraging economies of scale which 

promote efficient use of resources by shared service providers. 

The TFF providers include Departmental Offices’ Treasury Shared Services Programs (TSSP), 

Departmental Offices’ Centralized Treasury Administrative Services (CTAS), and the Bureau of 

the Fiscal Service’s Administrative Resource Center (ARC). TFF shared service providers offer 

financial management, procurement, travel, human resources, information technology, and other 

administrative services to federal customers on a fully cost recoverable, fee-for-service basis. 

The TFF FY 2022 Congressional Justification reflects revised estimates for FY 2021 along with 

new funding estimates for FY 2022. The revised estimates in FY 2021 for ARC Admin includes 

an increase operations and maintenance costs to support an expanded customer base. The 

revised estimates will also support ARC IT’s continued modernization efforts of the bureau’s IT 

infrastructure and technology service delivery (to include cloud adoption and low-code platform 

solutions) implementing enterprise-scale foundational and common technology services, and 

continuing to enhance IT portfolio management practices and the cybersecurity posture across 

the enterprise. The Centralized Treasury Administrative Services (CTAS) programs will reduce 

the FY 2021 operating levels to more accurately reflect the level of administrative support 

services provided for the Foreign Investment Risk Review Modernization Act (FIRRMA) 

initiatives, Departmental Offices (DO) Salaries and Expenses and Terrorism and Financial 

Intelligence offices. 

In FY 2022, the Treasury Shared Services (TSSP) programs will continue to support efforts in 

cybersecurity with the additional operations and maintenance costs transferred for initiatives 

developed under the Cybersecurity Enhancement Account (CEA). These cybersecurity 
initiatives will be deployed and implemented as a shared service provided to Treasury bureaus. 

TSSP will also focus on system modernization investments, IT reporting through Technology 

Business Management (TBM) and continuous improvement of baseline level services support. 

In FY 2022, the US Department of Agriculture (USDA) customers are expected begin 

transitioning to ARC for financial management (FM) services. In addition, ARC will continue to 

progress through a strategic project to continue simplifying customer FM services, increase 

customer FM maturity and public trust, maximize ARC value, and further emphasize law, 

regulations, and federal mandates. These initiatives will allow agencies to focus on mission 

activities and ensure cost sharing opportunities are accessible. 

Budget Highlights

Dollars in Thousands 

 FTE Amount 

FY 2021 President's Budget Estimate 

 

2,112 $869,321 

Adjustments to FY 2021 PB 42 (21,898) 

 Administrative Initiatives Adjustments (CTAS) 0 (27,059) 

 Increased Personnel Resources/IT Support (ARC Admin/IT) 42 5,161 

FY 2021 Revised Estimate 

 

2,154 $847,423 

Changes to Base: 

Maintaining Current Levels (MCLs): 20,192 

Pay Annualization (1.0% average pay raise) 667 

Pay Raise (2.7% average pay raise) 5,420 

FERS Contribution Increase 2,058 

Non-Pay 12,047 

Subtotal Changes to Base 0 20,192 

FY 2022 Current Services 2,154 $867,615 

Program Changes: 

Program Increases: 65 25,529 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance 

(TSSP) 0 5,254 

 Systems Modernization and Program Support (TSSP) 0 2,108 

 Continuous Diagnostic and Mitigation (CDM) Licenses (TSSP) 0 1,184 

 Systems Modernization (CTAS) 0 5,662 

 Electric Vehicles and Associated Infrastructure (CTAS) 0 304 

Customer Growth (ARC Admin) 35 6,017 

FSSP Consolidation (ARC Admin) 30 5,000 

Subtotal Program Changes 65 $25,529 

Total FY 2022 Estimate 

 

2,219 $893,144 
Budget Adjustments 

FY 2021 Adjustments........................................................... -$21,898,000/ +42 FTE 

Centralized Treasury Administrative Services (CTAS) -$27,059,000 / -0 FTE 

In FY 2021, the adjustments for administrative support include the following: 

Administrative Support Reduction for FIRRMA -$20,632,000 / 00 FTE 

Reductions to the planned level of administrative support resulting in a decrease to 

administrative costs necessary to support the Foreign Investment Risk Review Modernization 

Act (FIRMMA) initiatives: 

 Case management (-$13,378,000) 

 Facilities (-$4,800,000) 

 Personnel (-$2,454,000) 

DO and TFI -$6,427,000 / -0 FTE 

Reductions in administrative support for DO that were realized in FY 2020 and carry through 

to FY 2021. This includes reduced level of support for initiatives within DO Salaries and 

Expenses and the Office of Terrorism and Financial Intelligence (TFI). 

Increased Personnel Resources/IT Support (ARC Admin/IT) +$5,161,000 / +42 FTE 

In FY 2021, the adjustments for the ARC Admin and IT budgets include the following: 

ARC Admin +$4,684,000 / +29 FTE 

Revised FY 2021 estimates includes adjustments for human resources staffing required to 

meet critical workforce demands of customers. Without these resources, customers will 

experience delays in hiring, impacting mission success. 

ARC IT +$477,000 / +13 FTE 

In FY 2021, new service offerings and systems were added, offset by the transition of the 

Oracle hosting contract to ARC Admin. The increase will support technology modernization, 

implementation of an on-premise cloud environment, and increased investment in Cyber 

Security measures that will protect the National Critical Financial Infrastructure. 

Maintaining Current Levels (MCLs)......................................... +$20,192,000 / +0 FTE 

Pay Annualization (1.0%) +$667,000 / +0 FTE: 

Funds are required for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$5,420,000 / +0 FTE: 

Funds are required for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$2,058,000 / +0 FTE 

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$12,047,000 / +0 FTE 

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

equipment. 
Program Increases.............................................................. +$25,529,044 / +65 FTE 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (O&M) (TSSP) 

+$5,253,742 / +0 FTE 

Treasury will increase TSSP by $5.26 million to support the transition of the operations and 

maintenance costs from CEA investments to TSSP. The total FY 2022 estimated spending 

transitioned into TSSP since FY 2020 will be $16.48 million including this increase. The FY 

2022 increase will support the operations and maintenance costs for the following initiatives: 

 Fiscal Service Trusted Internet Connection (TIC) (+$3,622,676) 

 Treasury Identity Enterprise Services (+$857,000) 

 Treasury Secured Data Network (+$592,226) 

 Threat Hunting Analysis (+$181,840) 

Systems Modernization and Program Support (TSSP) +2,108,498 / +0 FTE 

Treasury will increase spending to support the system modernization and enhancements across 

TSSP programs to include: 

 O&M costs for the TBM tool that was implemented in FY 2021 (+$1,198,000) 

 Enterprise Data Management Cloud Support (+$581,250) 

 Automation of the change management process (+$374,248) 

 Enhancements for the Equal Employment Opportunity complaint tracking system 

(+$336,000) 

Continuous Diagnostic and Mitigation (CDM) Licenses (TSSP) +$1,184,000 / +0 FTE 

The FY 2022 increase in costs for CDM licenses is $1.184 million for Phase II in support of the 

CEA O&M initiatives transitioning into TSSP. These licenses are provided by the Department of 

Homeland Security (DHS) with the costs allocated to the Treasury bureaus through the TSSP. 

The CDM Program enhances the overall security posture of the Federal Government by 

providing Federal agencies with capabilities to monitor vulnerabilities and threats to their 

networks in near real-time. This increased situational awareness allows agencies to prioritize 

actions to mitigate or accept cybersecurity risks based on an understanding of the potential 

impacts to their mission. Total spending for FY 2022 is estimated at $13.284 million. 

Systems Modernization (CTAS) +$5,662,000 / +0 FTE

IT Modernization investment of $5.7 million will support increase spending for critical lifecycle 

upgrades and enhancements to modernize the DO IT infrastructure and IT server replacements. 

The following projects are included in this initiative:

 End User Equipment Lifecycle – Asset refresh of end of life end equipment (i.e., laptops, 

desktops, zero clients, etc.) and migrate service 

 Telework Workforce Enhancements – Hardware and software hardware/software to support 

efficiency and mission achievement in telework paradigm. 

 Video Teleconferencing – Increased software licenses, support, and services for DO web 

conferencing 

 Managed Remote Access - Transition from government owned and operated to managed 

service remote access for DO user community 

 Managed Desktop/Virtual Desktop Infrastructure (VDI) - Transition from government owned 

and operated virtual desktop infrastructure to managed service 

 IT Server Replacement - In FY 2022, Treasury will replace IT servers that have reached end 
of life. These servers support majority of IT operations and the daily workload within DO. 

By FY 2022, over 120 of these critical servers of will no longer receive vendor support and 

will no longer receive updates, which put critical IT components at risk of failure or breach. 

Cloud migration assessments for these servers have been conducted and results have helped 

to identify servers that can be moved to the cloud and replacement servers that support 

workloads not yet cloud ready. Re-capitalization of servers represents the majority of costs 

incurred, in addition to additional anticipated operational expenses associated with cloud 

computing. 

Electric Vehicle Fleet Management (CTAS) +$304,000 / +0 FTE 

In accordance with Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home and 

Aboard”, Treasury will support the Administration’s priority to develop a comprehensive plan to 

create good jobs and stimulate clean energy industries by revitalizing the Federal Government’s 

sustainability efforts. This includes Treasury’s commitment to use all available procurement 

authorities to augment its Departmentwide fleet management program with a continued focus on 

the purchase and/or leasing of electric vehicles (EV) and its essential infrastructure. 

Currently, DO has a total of 14 vehicles in its fleet, five are EVs. In FY 2022, this investment of 

$304,000 will fund the full conversion of its fleet and the purchase, installation, maintenance, 

and/or upgrade of infrastructure required to maintain an EV fleet management program. 

Customer Growth (ARC Admin) +$6,017,000 / +35 FTE 

Increase reflects operations and maintenance costs and provides cost sharing and avoidance 

opportunities for both the new and current agencies supported by ARC. In FY 2021, ARC 

expanded services with Corporation for National and Community Service (CNCS) and the 

Special Inspector General for Pandemic Recovery (SIGPR). In FY 2022, ARC will expand 

supported shared services transitions for the Office of Personnel Management (OPM) and limited 

new services to the Federal Emergency Management Administration (FEMA). 

Financial Shared Service Provider (FSSP) Consolidation (ARC Admin) +$5,000,000 / +35 FTE 

In FY 2021, portions of USDA’s shared service customer base will be merged into ARC 

operations as USDA is planning to discontinue their shared services operations in response to 

OMB M-19-16. ARC plans to maintain financial management services for current USDA and 

General Services Administration (GSA) customers. 

Legislative Proposals 

The TFF does not have legislative proposals. 

. 
Performance Highlights FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Budget Activity Performance Measure Actual Actual Actual Target Target 

Treasury Shared Services 

Programs Average Cost per FTE N/A 1463.5 1460.0 1580.3 1710.5 

Treasury Shared Services 

Programs Annual Effective Spend Rate N/A 97.1 96 96 96 

Treasury Shared Services 

Programs Customer Satisfaction N/A 75 80 80 80 

Centralized Treasury 

Administrative Services Annual Effective Spend Rate N/A 97.8 97.8 96 96 

Centralized Treasury 

Administrative Services Customer Satisfaction N/A 75 75 80 80 

Administrative Support 

Services Customer Unmodified Audit Opinions [%] 100 100 100 100 100 

Administrative Support 

Services 

Percentage of shared services service level 

agreement performance metrics met or 

exceeded [%] 

NA 89 86.7 94 94 

Administrative Support 

Services 

Customer Satisfaction with ARC Admin 

Services [%] NA 93.2 90.4 80 80 

Information Technology 

Services 

Fiscal IT Hosting – Percentage of Time 

Service is Operational (Uptime Excluding 

Planned Maintenance) 

99.8 99.6 99.0 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 [#] 

1 1 3 DISC DISC 

Information Technology 

Services 

% of IT Portfolio (TFF) Software and 

Hardware Currency N/A N/A N/A B 

Information Technology 

Services 

% of On-Premise Target Service Level 

Agreements Met N/A N/A N/A B 

Key: B -Baseline; DISC- Discontinued 

Description of Performance 

The TSSP annual effective spend rate relates to the financial management and oversight of the 

program. It gives insight into the how much of the resources collected from customers are being 

obligated for service delivery in the fiscal year. In FY 2020, 98.4 percent of the funds collected 

from customers for the shared services was obligated which was above the 96 percent target rate 

set for the fiscal year. 

In FY 2020, the TSSP survey results yielded a 90 percent overall customer satisfaction rating for 

services provided through the TSSP. Planned efforts to achieve this higher rating for customer 

satisfaction going forward will focus on identifying more opportunities for customer engagement 

and improved customer feedback mechanisms. 

The CTAS FY 2020 annual effective spend rate was 97.8 percent, which was above the set target 

rate of 96 percent. The customer satisfaction rate was baselined in FY 2019. Results from a 

survey released in FY 2020, garnered a 75 percent satisfaction rating for the overall program. 

In FY 2020, ARC Admin met performance metrics with the exception of Percentage of Service 

Level Agreement Performance Metrics. This can be attributed to new staff onboarding. ARC has 

worked to strengthen new employee training. ARC continues to work with customer agencies to 

understand the changes thereby enabling them to align resources to support the demand. 
In FY 2020, ARC IT’s hosting performance was 99.9 percent uptime, which exceeded the 

measure target of 99.0. ARC IT also exceeded the target for number 2 engagements in strategic 

sourcing and achieve increased service levels.