Departmental Offices 

Mission Statement 

Serve the American people and strengthen national security by managing the U.S. 

Government’s finances effectively, promoting economic growth and stability, and 

ensuring the safety, soundness, and security of U.S. and international financial systems. 

Program Summary by Budget Activity 

Dollars in Thousands 

Appropriation FY 2007 FY 2008 FY 2009

Departmental Offices - S & E Enacted Enacted Request $ Change % Change 

Executive Direction $19,728 $20,749 $21,592 $843 4.06%

Economic Policies and Programs 38,393 44,242 45,853 1,611 3.64%

Financial Policies and Programs 24,695 29,465 34,735 5,270 17.89%

Terrorism and Financial Intelligence 47,540 56,775 61,712 4,937 8.70%

Treasury-wide Management and 

Programs 16,748 18,505 19,009 504 2.72%

Administration Programs 69,244 78,624 90,994 12,370 15.73%

Total Appropriated Resources $216,348 $248,360 $273,895 $25,535 10.28%

Total FTE 1,055 1,133 1,200 66 5.87%

FY 2009 Priorities 

The FY 2009 budget request supports the Departmental Offices’ (DO’s) leading role in 

accomplishing key Administration goals: 

• Effectively Manage U.S. Government Finances – The Department will dedicate 

significant resources to increasing the efficiency and sophistication of debt 

management tools, which will result in taxpayer savings. 

• Ensure U.S. and World Economies Perform at Full Economic Potential – The 

Department strives to maintain America’s strength and prosperity, and will 

continue to do so by developing and implementing policies that encourage overall 

economic growth, protecting key financial infrastructure, and ensuring foreign 

investment in the U.S. economy is sound and secure. The Department will also 

build a Operations center to improve its ability to provide timely response to 

financial crises. 

• Prevent Terrorism and Promote the Nation’s Security Through Strengthened 

International Financial Systems – The Department will maximize its impact by 

increasing its role as a leader in the area of financial intelligence, setting the 

guidelines for the Intelligence Community (IC) in the area of financial 

intelligence. The Department will increase its counterintelligence capabilities and 

enhance its capacity to administer sanctions against terrorist groups and their 

sponsors. 

• Promote Management and Organizational Excellence – The Department 

continues to develop integrated plans where policies and operations align to 

produce maximum value for the American people. DO will fund technology 

investments and disaster recovery planning. 
Table of Contents 

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

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

1B – Program History and Future Outlook..................................................................... 2 

Section 2 – Budget Adjustments and Appropriation Language................................... 8

2.1 – Budget Adjustments Table..................................................................................... 8 

2A – Budget Increases and Decreases Description ........................................................ 8 

2.2 – Operating Levels Table........................................................................................ 13 

2.3 – Appropriations Detail Table ................................................................................ 14 

2B – Appropriations Language and Explanation of Changes....................................... 15 

2C – Legislative Proposals ........................................................................................... 16 

Section 3 – Budget and Performance Plan ................................................................... 18

3.1 – Budget by Strategic Goal..................................................................................... 18 

3A – Executive Direction ............................................................................................. 18 

3.2.1 – Executive Direction Budget and Performance Plan ......................................... 19 

3B – Economic Policies and Programs......................................................................... 19 

3.2.2 – Economic Policies and Programs Budget and Performance Plan..................... 20 

3C – Financial Policies and Programs.......................................................................... 21 

3.2.3 – Financial Policies and Programs Budget and Performance Plan...................... 22 

3D – Terrorism and Financial Intelligence ................................................................... 23 

3.2.4 – Terrorism and Financial Intelligence Budget and Performance Plan............... 25 

3E – Treasury-wide Management and Programs......................................................... 25 

3.2.5 – Treasury-wide Management and Programs Budget and Performance Plan ..... 26 

3F – Administration Programs...................................................................................... 27 

3.2.6 – Administration Programs Budget and Performance Plan................................. 27 

Section 4 – Supporting Materials.................................................................................. 29

4A – Human Capital Strategy Description ................................................................... 29 

4.1 – Summary of IT Resources Table ......................................................................... 34 

4B – Information Technology Strategy ........................................................................ 35 

4.2 – PART Evaluation Table....................................................................................... 37 

4C – Terrorism Risk Insurance (TRIA)........................................................................ 38 

4.3 – TRIA Baseline Outlays and Receipt Table.......................................................... 38 
Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The Departmental Offices (DO), as the headquarters of the Department of the Treasury, 

performs core functions vital to national security, the promotion of economic growth, and 

the management of the nation’s finances. 

The FY 2009 budget request supports DO’s leading role in accomplishing the outcomes 

of the Treasury strategic framework: 

• Managing the Government’s Finances – The ability of the Department of the 

Treasury to manage the nation’s finances with integrity is paramount to 

maintaining financial stability and enabling economic growth. DO will continue 

to play an important role in this effort through sound fiscal management enabling 

continual operation of essential government services and allowing the Department 

to meet its financial obligations while minimizing borrowing costs. 

• Securing America’s Economic and Financial Future – The integration of the 

global economy and liberalization of markets holds forth the promise of an

increasingly prosperous and secure world. DO will continue to work toward an 

economic system that promotes competitive capital markets, free trade and 

investment, while always striving to decrease the gap in the global standard of 

living. 

• Strengthening National Security – The Department plays an integral role in 

stopping the financing of terrorism and identifying and dismantling terrorist 

organizations’ support networks. DO will continue to lead the effort, working 

closely with other agencies and with governments around the world, to identify 

and block financial assets of terrorists, proliferators of weapons of mass 

destruction, and narcotics traffickers and their support networks. Doing so will 

impair, impede, and economically isolate these individuals, organizations and 

entities. 

• Producing Effective Results – The Department is committed to creating the 

conditions that allow its programs and activities to perform efficiently and 

effectively, while continuing to drive results through performance and cost-based 

decision-making, DO will continue to align resources to deliver outcomes; to 

invest in, secure and leverage information technology; to close skill gaps, recruit 

and retain a high performing workforce; and to develop effective leadership. 

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1B – Program History and Future Outlook 

DO has transitioned to operate beyond the scope of traditional headquarters 

responsibilities, allowing it to accomplish multiple missions that are broad in scope. DO 

plays a direct role in fighting the war on terror and in promoting the President's economic 

policy agenda domestically and abroad. 

Managing the Government’s Finances – The primary function of the Department of the 

Treasury is the management of the monetary resources of the United States. Many 

critical aspects of that management function fall under the scope of DO; including the 

determination of domestic and international economic policy and debt management. The 

Departmental Offices have recently experienced success in both of these areas. 

 

In FY 2007, the Office of Tax Policy continued to support the Administration’s health 

care initiatives through significant and timely analysis of the taxation and employee 

benefits issues underlying many health and Medicare reform proposals. The office 

worked to develop a proposal that would make health care more affordable and more 

accessible. Under this proposal, all taxpayers who buy health insurance, whether on their 

own or through their employer, and no matter the cost of the plan, would get the same

standard tax deduction for health insurance. The proposal would help hold down healthcare costs by removing the current tax bias that encourages over-spending. 

The Department of the Treasury released a comprehensive seven-point strategy in a 

continuing effort to reduce the tax gap and increase compliance. This budget includes 

resources critical to implementing that strategy, including new funding for research on 

noncompliance with the tax law. Analytical support will focus on developing tools for 

narrowing the tax gap without imposing excessive burdens on compliant taxpayers. 

The Office of Tax Policy also released a study titled “Approaches to Improve the 

Competitiveness of the U.S. Business Tax System for the 21st Century,” which examined 

the impact of tax policy on the global competitiveness of U.S. companies and workers. 

This study is part of an ongoing effort by the Department to explore opportunities that 

will enhance U.S. competitiveness. 

In FY 2009, the Department will continue working toward the full automation of the 

interest rate and yield curve certifications presently executed by the Office of Debt 

Management. Treasury is required by statute and regulation to determine a broad array 

of critical interest rates including rates for savings bonds, Social Security Trust Funds, 

and State and Local Government Series securities. Treasury also creates the official real 

and nominal yield curves for financial markets. The implementation of these efforts will 

ensure that Treasury can produce these mission-critical processes on a timely basis, 

provide them to market participants quickly, and bolster contingency procedures. 

Securing America’s Economic and Financial Future – The Department plays a key 

policy role in promoting prosperous U.S. and world economies, raising standards of 

living, and protecting domestic and international economic and financial systems. The 

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Department will strive to maintain America’s strength and prosperity by developing and 

implementing policies that encourage overall economic growth, protect key financial 

infrastructure, and ensure investment in the U.S. economy is sound. 

In FY 2007, the Office of Financial Market Policy (OFMP) took a lead role in the 

President’s Working Group on Financial Markets (PWG) acting as liaison to other PWG 

agencies, the Government Accountability Office (GAO), and Congressional staff. As the 

internal Treasury coordinator for PWG issues OFMP coordinated meetings on various 

issues including Private Pools of Capital/Hedge Funds with hedge fund managers, prime 

brokers/counterparties, investors, fiduciaries/pension funds/endowments, and support 

industries (lawyers, accountants/auditors). These efforts culminated in the release of the 

PWG’s Principles and Guidelines Regarding Private Pools of Capital in February 2007 

to address systemic risk and investor protection issues

FY 2007 also saw an increased effort by the Treasury Department to increase financial 

education. Department officials traveled to 20 states, held 95 financial education 

sessions, responded to approximately 220 inquiries from financial education providers 

through the Department’s Technical Assistance Center, and recognized three 

organizations for their exemplary financial education programs. As part of its leadership 

of the Financial Literacy and Education Commission, Treasury hosted three statutorily 

required public meetings, submitted the annual Strategy for Assuring Financial 

Empowerment to Congress in a timely fashion, completed 15 calls to action as outlined in 

the National Strategy for Financial Literacy, and implemented two recommendations of 

the GAO’s recently issued report. In addition, the promotion of the MyMoney.gov Web 

site and the 1-888-MyMoney toll-free hotline resulted in more than 900,000 visits and 

more than 16,000 calls respectively. The office also released its evaluation of First 

Accounts Program recipients and testified before Congress on the status of financial 

literacy efforts, and collaborated (and continues to collaborate) with the White House to 

launch a financial literacy initiative. 

Treasury’s Office of Critical Infrastructure Protection, in conjunction with regional 

coalitions in Chicago and San Francisco, led the financial industry-wide pandemic flu 

exercise held in the fall of 2007. Additionally, the Office organized and ran a crossborder exercise between the President’s Working Group on Financial Markets and the 

Tripartite Standing Committee in the United Kingdom. This exercise highlighted the 

need for continued efforts between the financial authorities in these countries and others

to come together to focus on areas where further collaboration is necessary to address 

potentially global financial crises. 

In FY 2009, the Department of the Treasury will launch a cross-departmental strategic 

initiative to better manage the government’s finances with increased levels of automation, 

resiliency, reporting, transparency and cost savings. The Department plans to design, 

build and implement cash and debt management systems, analytics, policies, and 

procedures to administer the nation’s finances, arming the Department of the Treasury 

with 21st century tools to efficiently and effectively execute its core mission. The 

initiative has four principal components: cash management modernization, debt 

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management modernization, enhanced reporting and transparency, and improved risk 

management. 

As the lead agency for the banking and finance sector, the Treasury Department will 

continue to work to ensure the resilience of the American financial services sector, and 

by extension the American economy, so it is resilient and able to withstand natural 

disasters or man-made attacks intended to disrupt, dismantle, or destroy its critical 

infrastructure. Economic security has been identified as a National Essential Function, 

and the confidence of our citizens and our trading partners depends in part on the 

knowledge that the U.S. financial system is at all times available and resilient in the face 

of all such potential incidents. 

In FY 2008, the Department implemented a three point plan to avoid preventable 

foreclosures and to minimize the impact of the housing downturn on the U.S. economy. 

The plan included: increasing efforts to reach able homeowners who are struggling with 

their mortgages; working to increase the availability of affordable mortgage solutions for 

these borrowers; and leading the industry to develop a systematic means of efficiently 

moving able homeowners into sustainable mortgages. In FY 2009 the Department will 

also continue its industry-wide effort to respond to the downturn in the housing and 

mortgage markets. By preventing avoidable foreclosures, the Department will help to 

safeguard neighborhoods and communities, and fulfill our primary responsibility of 

protecting the broader U.S. economy. 

Strengthening National Security – The Treasury Department leads the U.S. 

government’s multi-faceted effort to keep the world’s financial systems free and open to 

legitimate uses, while excluding those who wish to use those systems for illegal purposes, 

through its Office of Terrorism and Financial Intelligence (TFI). Since its creation in FY 

2004, TFI has expanded its capabilities from focusing on the current intelligence process 

to the production and dissemination of analysis on strategic and systemic issues. 

TFI’s Office of Foreign Asset Control (OFAC) successfully executes sanctions against 

foreign countries, targeted regimes, and entities and individuals, including residual 

enforcement actions associated with programs that have been lifted. Although these 

many programs differ in terms of their scope and application, they all involve the 

exercise of the President’s constitutional and statutory wartime and national emergency 

powers to impose controls on transactions and trade, and to freeze foreign assets that 

come within the jurisdiction of the United States. In administering and enforcing these 

economic sanctions, it is imperative that OFAC maintain a close working relationship 

with other federal departments and agencies in order to ensure both that these programs 

are implemented in a manner consistent with U.S. national security and foreign policy 

interests, and that they are enforced effectively. 

Over the past several years, the Department has focused its efforts on exploiting current 

intelligence, building breadth and depth in its analytic ranks, improving its strategic 

analytic capability, and building the capacity to perform systemic analyses of national 

security threats. 

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In FY 2009, the Department will build on these capabilities by using its unique expertise 

to help coordinate the collection and analysis of information regarding the means, 

methods, and networks that form the financial underpinning of national security threats, 

and develop the tools to address those threats. Requested resources will be targeted to 

aligning collection on finance-related issues more closely with policymaker needs by 

driving the requirements process; developing and taking advantage of new sources of 

information; enhancing analysis on finance-related issues in coordination with the 

intelligence community (IC); expanding Treasury’s role and relationships within the IC; 

and ensuring TFI’s Office of Intelligence and Analysis’ infrastructure meets these new 

responsibilities. 

Producing Effective Results – The Department continues to work at providing the tools 

necessary to execute the Treasury Department’s mission in the most efficient and cost 

effective manner. Essential components required for achieving the Department’s mission 

include human resources, facility services, information technology, budgetary services, 

and procurement. 

In FY 2007, the Treasury Department ably executed initiatives aimed at supporting the 

goals of the organization. For example, the Department successfully transitioned to a 

new Department-wide Complaint Management Tool, which enabled the capture of 

Treasury-wide data at the pre-complaint phase of the EEO process. The data provided by 

the system is being used by management to measure the timeliness and effectiveness of

the EEO counseling process. For the first time, the Treasury Department instituted 

service-wide standards for the operation of the Treasury Complaint Center to assist us in 

meeting our oversight responsibility. 

During FY 2007, DO led a successful Department-wide effort to address a number of 

human capital issues. Program accomplishments included implementing of a human 

capital accountability and audit program; developing and issuing Succession 

Management and Workers Compensation policies; leading efforts to strengthen agencywide performance management; improving hiring processes and timeliness; and leading 

or facilitating initiatives that added value to the agency’s ability manage the workforce. 

The Department built a Treasury-wide training program to provide the required training 

to meet the first year requirements of the No Fear Act. In addition to making that training 

available across the Department, the program has been shared with other federal 

agencies. 

To enhance human capital management within the Department in FY 2009, focus will be 

placed on: improved outreach to diverse groups, including establishing intern programs

from sources such as the Hispanic Association of Colleges and Universities, Historically 

Black Colleges and Universities, the Washington Internships for Native Students, and the 

Workforce Recruitment Program; enhanced oversight of the Treasury Complaint Mega 

Center in Dallas, Texas; improved overall processing times for EEO formal complaints; 

increased participation in Alternative Dispute Resolution (ADR) programs and activities, 

with an emphasis on dispute prevention and conflict resolution; and establishment of

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Treasury-wide goals to measure our progress in hiring individuals with disabilities, with 

monitoring of accomplishments in this area. 

Within DO, resources will be dedicated to: revising and developing personnel policies, 

programs and processes; developing and delivering new supervisory and leadership 

training to create and sustain a learning environment within DO; assisting offices in 

focusing on succession planning; providing the necessary support to implement ongoing 

government-wide initiatives to build a robust intelligence analysis capability; and 

expanding and formalizing the DO telework program to help attract, employ and retain 

the best and brightest from among today’s workforce. 

The Department of the Treasury is committed to strengthening the IT investment 

management, and has recently taken additional steps to do so. First, the Department has 

included all IT investments under the Department’s IT Capital Planning and Investment 

Control Policy processes. Second, the Department is establishing a process to ensure that 

the Project and Program Managers are certified in accordance with OMB requirements.

Finally, the Department is working to better engage the Department’s executive 

leadership by re-establishing the Executive Investment Review Board (E-Board). The EBoard will: make recommendations to the Secretary on strategic IT priorities for the 

Treasury based on statutory requirements, the President’s Management Agenda, the 

Treasury Strategic Plan, or issues identified by GAO or the Department’s Inspectors 

General; annually review the IT Strategic Plan prepared by the Chief Information Officer 

(CIO); determine the IT investments (and corresponding budgets) that best support the 

Treasury’s missions and program delivery processes; review the progress of existing 

systems and ongoing IT projects to determine if they should proceed as planned, be 

redirected or discontinued; and evaluate the results achieved by the use/operation of 

Treasury IT systems to ensure Treasury IT investments yield the planned results.

The Office of the Procurement Executive (OPE) continues to provide Department-wide 

acquisition policy and oversight, ensuring proper business controls, continuous 

improvement and achievement of key acquisition goals. OPE, in conjunction with the 

CIO, implemented a High Impact Acquisition (HIA) program designed to support 

improved oversight and management of the Department’s information technology 

investments. The HIA program requires contract reviews by contracting officers in 

consultation with program managers as part of the quarterly Capital Planning and 

Investment Control quarterly reviews. These reviews cover over 150 contracts each 

quarter, and result in an executive scorecard of investments with contract issues that 

require corrective action planning. The HIA scorecard promotes executive level 

engagement in IT issues as it is distributed regularly to the Treasury Acquisition Council, 

the CIO Council (the Treasury Investment Review Board), and the Chief Financial 

Officer Council, and will be used in assessments of bureau budget requests. 

Finally, the Office of Emergency Programs (OEP) facilitated a series of training exercises 

in the area of continuity of operations during critical national security and emergency 

events. OEP worked with the Secret Service to standardize emergency notification 

procedures in the Secret Service-Treasury Command Center. The office provided 

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management support to over 30 Main Treasury incidents in FY 2006, and is on track to 

double this number in FY 2007. This office took the lead in managing numerous 

Treasury-wide incidents such as hurricanes, floods, and security incidents at remote 

facilities throughout the year and will continue to do so going forward. 

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Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands

Departmental Offices - S & E FTE Amount

FY 2008 Enacted 1,133 $248,360

Base Realignment:

 OIA – Base Realignment (1,000)

 OIA – Global Finance Initiative 1,000

Maintaining Current Levels (MCLs):

 Non-Pay Inflation Adjustment 2,396

 Pay Annualization 837

 Pay Inflation Adjustment 2,849

Initiative Annualization:

 IA - Annualization of FY 2008 Initiative 4 748

 OFAC - Annualization of FY 2008 Initiatives 5 986

 OIA - Annualization of FY 2008 Initiatives 9 1,465

 TFFC - Annualization of FY 2008 Initiatives 4 803

 TP - Annualization of FY 2008 Initiatives 2 431

Non-Recurring Costs:

SCIF (1,500)

Transfers In:

 DOIT - Disaster Recovery 1,724

Total FY 2009 Base 1,156 $259,099

Program Increases:

 DF - Debt Management Office Analytical Support 2 3,000

 DF - Ensuring National Security Through CIP 1,300

 DO - Operations Center 24 6,200

 OFAC - State Sponsored Terrorism (Iran and Sudan) 4 1,380

 OGC - General Counsel Support for CFIUS 2 483

 OIA - Counterintelligence and Security Capabilities Enhancement 3 1,433

 OIA - Global Finance Initiative 10 1,000

Subtotal FY 2009 Program Changes 44 14,796

Total FY 2009 Request 1,200 $273,895

2A – Budget Increases and Decreases Description 

Base Realignment .........................................................................................+$0 / +0 FTE 

Office of Intelligence Analysis (OIA) - Base Realignment -$1,000,000 / +0 FTE 

A portion of the Treasury base funding will be transferred within the DO budget to 

support the Global Finance Initiative. 

OIA - Global Finance Initiative +$1,000,000 / +0 FTE 

In FY 2009, Treasury will realign $1 million in base resources to support the Global 

Finance Initiative for a total of $2 million. This investment is described in more detail in 

the “Program Increases” section below. 

Maintaining Current Levels (MCLs) ...........................................+$6,082,000 / +0 FTE 

Non-Pay Inflation Adjustment +$2,396,000 / +0 FTE 

Funds are requested for the inflationary increases to non-labor related items such as 

contracts, travel, supplies, equipment, and General Services Administration (GSA) rent 

adjustments; and Department of State overseas Capital Security Cost Sharing. 

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Pay Annualization +$837,000 / +0 FTE 

Funds are requested for the FY 2009 cost of the January 2008 pay increase. 

Pay Inflation Adjustment +$2,849,000 / +0 FTE 

Funds are requested for the proposed January 2009 pay raise. 

Initiative Annualization ...............................................................+$4,433,000 / +23 FTE 

Funds are requested for completing the full-year cost and FTE realization of positions

from enacted FY 2008 initiatives. 

Office of International Affairs (IA) - Annualization of FY 2008 Initiative +$748,000 / +4 

FTE 

In FY 2008, funds were enacted to recruit investment flow analysts and other specialists. 

This function is necessary to provide adequate support for, and measure progress toward, 

achieving the International Affairs objective of ensuring national security and increasing 

economic growth. 

Office of Foreign Asset Control (OFAC) - Annualization of FY 2008 Initiatives 

+$986,000 / +5 FTE 

In FY 2008, resources were enacted to continue the Treasury Department's efforts in 

combating terrorism networks and state sponsors of terrorism. New Executive Orders 

with respect to Sudan and Syria were issued in 2006 and the Administration is 

extensively engaged with respect to Iran. Funding was also enacted to expand the 

weapons of mass destruction (WMD) sanctions program by strengthening OFAC's ability 

to track, identify, and designate financiers and other supporters of WMD proliferation. 

Finally, additional support was enacted to expand enforcement capacity in support of 

investigation and blocking activities, which are critical to the enforcement of sanctions. 

OIA - Annualization of FY 2008 Initiatives +$1,465,000 / +9 FTE 

In FY 2008, funding was enacted to expand OIA's analytic programs to meet increased 

demands and expand the breadth and depth of its analytic coverage to address emerging

national security threats and issues. Additionally, resources were provided to integrate 

Treasury further into the Intelligence Community (IC); to increase Departmental access 

to critical intelligence; and to expand the Department’s ability to coordinate on terroristfinancing and WMD proliferation matters with the IC, law enforcement communities, 

and foreign partners. Finally, funding was enacted for OIA’s Office of Intelligence 

Support (OIS) to provide intelligence on a full range of political, economic, and security 

matters to the Secretary, Deputy Secretary and other senior Treasury leadership. The 

information provided by OIS is critical for the participation by the Treasury Department's

senior leaders in the policymaking process National Security Council. 

Office of Terrorist Financing and Financial Crimes (TFFC) - Annualization of FY 2008 

Initiatives +$803,000 / +4 FTE 

In FY 2008, resources were enacted for additional policy advisors dedicated to disrupting 

terrorist financial networks in the Western Hemisphere, Africa and the Middle East-South 

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Asia nexus, bringing together the U.S. government tools available to law enforcement 

and national security agencies. Funding was also provided to target rogue regimes such 

as North Korea and other significant national security hot spots (including Afghanistan, 

Pakistan, India, and Central Asia). 

Office of Tax Policy (TP) - Annualization of FY 2008 Initiatives +$431,000 / +2 FTE 

In FY 2008, funds were enacted to increase tax policy analytical support. TP presently 

has only limited capability to produce analyses for a narrow range of tax policy changes. 

Additional resources dedicated to to this analysis will afford decision makers estimates of

the full effect of tax policy changes decision-makers in order to inform tax policy 

determinations. The resources requested will facilitate production of these estimates for 

proposed Federal tax legislation. This funding annualizes that initiative to ensure full year 

funding for FY 2008 hires. 

Non-Recurring Costs ......................................................................-$1,500,000 / +0 FTE 

Sensitive Compartmented Information Facility (SCIF) -$1,500,000 / +0 FTE 

Of the $3 million in SCIF funding enacted in FY 2008, $1.5 million is non-recurred in 

FY 2009. 

Transfers In ....................................................................................+$1,724,000 / +0 FTE 

DOIT - Disaster Recovery +$1,724,000 / +0 FTE 

The FY 2009 budget proposes to transfer funding for its disaster recovery site from the 

Department-wide Systems and Capital Investments Program account to the DO Salaries 

and Expenses account due to the fact that the funds are for continuing operations and not 

development. The DO disaster recovery site was established in 2002 at another 

government site in West Virginia. The servers, workstations and network devices were 

procured and installed as part of the seat management contract. Thus, the systems are 

paid for over a three- or four-year period and refreshed at the end of the cycle. The fixed 

cost of equipment, labor and leased telecommunications lines are mandatory expenses 

that will continue in perpetuity. 

Program Increases .....................................................................+$14,796,000 / +44 FTE 

DF - Debt Management Office Analytical Support +$3,000,000 / +2 FTE 

A complete revamp of the Office of Debt Management's (ODM) information technology 

systems is necessary to equip decision makers with better models so that more accurate 

and timely projections can be made. This will result in more effective financing of the 

Federal Government and will increase the reliability of crucial data on which the capital 

markets rely. By investing in ODM’s systems, the Treasury Department will be in a 

position to significantly reduce the risk of operational failure, better manage its $9+ 

trillion debt portfolio and improve national security. Securing the ODM infrastructure 

through multiple failsafe mechanisms and backup facilities will ensure that the U.S. 

Treasury market remains the most important sovereign issuer in global capital markets. 

This modernization will make the U.S. debt management technology more comparable to 

the sophisticated systems used in other countries like the United Kingdom, Canada, and 

Japan. Additionally, the potential cost savings for the American public from completing 

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this initiative is significant - a one basis point reduction in interest costs would save the 

US taxpayer $430 million annually. 

DF - Ensuring National Security Through the Office of Critical Infrastructure Protection

+$1,300,000 / +0 FTE 

This funding will help prepare the American financial services sector against disasters,

either natural or manmade. The mission of this office is to lead the efforts of the Banking 

and Finance Sector to maintain and improve the security and resilience of the U.S. 

financial infrastructure. Initiatives currently underway have made a direct and positive 

impact on cooperative public-private sector efforts to identify threats and vulnerabilities, 

to share critical information, and to work together to mitigate risks to the sector and 

protect the U.S. economy and our national security. Given the important mission and its 

many accomplishments, the FY 2009 budget seeks additional resources to expand the 

work of providing for the resilience and protection of the Nation's financial services 

infrastructure. Additional funding will allow for further international exercises with 

entities such as the European Central Bank, extensive mapping of the financial sector, 

and the establishment of secure communications with financial institutions. 

DO - Operations Center +$6,200,000 / +24 FTE 

The war on terror and the increasing globalization of the world economy requires the 

Department of the Treasury’s policy offices and bureaus to coordinate actions in a 

dynamic environment. Interactions with international financial markets, regulation of 

domestic financial markets, and the financial analysis of terrorist organizations demand 

continuous coordination. The global scope of the Treasury Department’s operation 

requires a 24/7 monitoring capability. Only instant communication and continuous 

coordination will enable the Department to respond efficiently to an international or 

domestic financial crisis. The FY 2009 budget establishes an Operations Center that will 

act as a fusion center for the processing, dissemination, and coordination of crisis 

management actions of policy offices including international affairs, domestic finance, 

and intelligence analysis. It will incorporate and expand the existing Market Room’s 

capacity to monitor international and domestic financial markets; coordinate actions with 

Federal agencies, foreign governments, and global financial markets; and manage the 

Department’s global operations on a daily basis. The center will include representatives 

from key Treasury Department policy offices and will provide them with necessary 

communication equipment and information technology. 

OFAC - State Sponsored Terrorism (Iran and Sudan) +$1,380,000 / +4 FTE 

The FY 2009 budget proposes to enhance capacity to effectively administer and 

implement the application of economic sanctions to state-sponsors of terrorism, such as 

Iran and Sudan, as well as terrorists, terrorist groups, and their support networks. The 

funds will provide additional sanctions investigators; enforcement, compliance, licensing, 

blocking, and civil penalties officers; Freedom of Information Act specialists; and 

program advisor and records management specialists to support these efforts. 

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Office of General Counsel (OGC) - General Counsel Support for the Committee on 

Foreign Investment in the United States (CFIUS) +$483,000 / +2 FTE 

The Office of the Assistant General Counsel for IA requires additional legal support so

that it may meet the increased demand to support clients on the Treasury-chaired 

Committee on Foreign Investment in the United States. The number of cases reviewed 

by CFIUS has substantially increased, as has the scrutiny accorded to each case. 

Treasury Department attorneys are involved much earlier in the process of case review 

and are devoting far more time to each case in order to examine jurisdictional issues and 

participate in interagency discussions of possible mitigation agreements when potential

national security threats are present. 

OIA - Counterintelligence and Security Capabilities Enhancement +$1,433,000 / +3 FTE 

Funding this initiative is critical to the Department’s efforts to address current and 

emerging threats that affect its national security mission. These include: preventing 

espionage in the Department; thwarting adversarial threats to our personnel, programs,

and facilities; and identifying and mitigating threats from compromise of Treasury 

critical programs or theft. As Treasury's national security mission increases, Treasury 

becomes a greater target of foreign adversaries. This initiative builds on the recent 

Departmental Counterintelligence assessment. Furthermore, this initiative aligns with the 

Director of National Intelligence’s National Intelligence Strategy Enterprise Objective 

Seven and the National Counterintelligence Strategy. 

OIA - Global Finance Initiative +$1,000,000 / +10 FTE 

Targeted financial measures supported by sound financial intelligence have become one 

of the most effective weapons against national security threats, as policymakers continue 

to seek options short of military force. Treasury’s efforts in this area have been 

instrumental in disrupting terrorist financing and applying pressure on countries such as 

Iran and North Korea in direct support of U.S. policy goals. This initiative provides $2 

million, including a realignment of $1 million in base resources, and 10 positions to 

establish a capability to facilitate the coordination of global finance intelligence issues

within the IC. These resources will enable OIA, Treasury’s intelligence component, to 

effectively leverage information from the IC to provide actionable intelligence to senior 

policymakers in support of these increasingly utilized measures, and to play a critical role 

in facilitating coordination across the IC on matters related to financial intelligence. 

Resources will be targeted to aligning collection requirements on finance-related issues

more closely with policymaker needs; developing and taking advantage of new sources of 

information; enhancing analysis on finance-related issues in coordination with the IC; 

expanding OIA’s role and relationships within the IC; and ensuring OIA’s infrastructure 

meets these new responsibilities. This initiative is aligned with key tasks and objectives 

of the National Security Strategy, the National Intelligence Strategy, the National 

Implementation Plan for the War on Terror, and the Treasury Strategic Plan. 

DO - 12 
 2.2 – Operating Levels Table 

Dollars in Thousands

Bureau: Departmental Offices - S & E

FY 2007 Enacted

FY 2008 

President's 

Budget

Cong. Action 

including 

Rescission

FY 2008 Enacted 

Level

FY 2009 

Requested Level

FTE 1,055 1,133 1,200

Object Classification:

 11.1 - Full-time permanent 107,172 112,379 0 112,378 130,297

 11.3 - Other than full-time permanent 2,781 2,781 0 2,781 2,781

 11.5 - Other personnel compensation 197 197 0 197 197

 11.8 - Special personal services payments 0 0 0 0 0

 12 - Personnel benefits 23,792 23,843 0 23,843 28,377

 13 - Benefits for former personnel 0 0 0 0 0

 21 - Travel and transportation of persons 4,200 6,789 0 6,790 5,047

 22 - Transportation of things 0 0 0 0 0

 23.1 - Rental payments to GSA 4,000 5,239 0 5,239 4,000

 23.2 - Rental payments to others 0 0 0 0 0

 23.3 - Comm, utilities, and misc charges 13,146 7,967 0 7,967 14,058

 24 - Printing and reproduction 2,715 3,615 0 2,715 2,715

 25 - Other contractual services 0 0 0 0 0

 25.1 - Advisory and assistance services 26,690 52,837 (1,782) 51,055 37,699

 25.2 - Other services 13,612 0 0 9,724 19,229

 25.3 - Other purchases of goods and services from Govt.

accounts 

15,751 28,564 0 18,840 22,249

 25.4 - Operation and maintenance of facilities 900 0 0 900 900

 25.5 - Research and development contracts 0 0 0 0 0

 25.6 - Medical care 0 0 0 0 0

 25.7 - Operation and maintenance of equip 1,000 1,000 0 1,000 1,000

 25.8 - Subsistence and support of persons 0 0 0 0 0

 26 - Supplies and materials 0 3,857 0 3,857 3,426

 31 - Equipment 392 1,073 0 1,073 1,920

 32 - Land and structures 0 0 0 0 0

 33 - Investments and loans 0 0 0 0 0

 41 - Grants, subsidies, and contributions 0 0 0 0 0

 42 - Insurance claims and indemnities 0 0 0 0 0

 43 - Interest and dividends 0 0 0 0 0

 44 - Refunds 0 0 0 0 0

Total Budget Authority $216,348 $250,141 $(1,782) $248,360 $273,895

Budget Activities:

 Executive Direction 19,728 19,816 933 20,749 21,592

 Economic Policies and Programs 38,393 45,450 (1,208) 44,242 45,853

 Financial Policies and Programs 24,695 28,869 595 29,465 34,735

 Terrorism and Financial Intelligence 47,540 56,224 551 56,775 61,712

 Treasury-wide Management and Programs 16,748 19,010 (348) 18,505 19,009

 Administration Programs 69,244 80,772 (2,305) 78,624 90,994

Total Budget Authority $216,348 $250,141 $(1,782) $248,360 $273,895

DO - 13 
2.3 – Appropriations Detail Table 

Dollars in Thousands

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Newly Appropriated Resources:

Executive Direction Programs 119 $19,094 119 $19,728 129 $20,749 131 21,592 1.16% 4.06%

Economic Policies and Programs 232 35,581 232 38,393 244 44,242 247 45,853 1.44% 3.64%

Financial Policies and Programs 181 24,878 181 24,695 194 29,465 198 34,735 1.80% 17.89%

Terrorism and Financial Intelligence 264 43,115 264 47,540 308 56,775 342 61,712 11.06% 8.70%

Treasury-wide Management Policies and Programs 99 15,705 99 16,748 99 18,505 99 19,009 0.00% 2.72%

Administration Programs 160 75,154 160 69,244 160 78,624 184 90,994 15.00% 15.73%

Subtotal Newly Appropriated Resources 1,055 213,527 1,055 216,348 1,133 248,360 1,200 273,895 5.87% 10.28%

Other Resources:

Offsetting Collections - Reimbursable 86 $17,816 86 $19,800 90 $19,800 90 $18,500 0.00% -6.57%

Subtotal Other Resources 86 17,816 86 19,800 90 19,800 90 18,500 0.00% -6.57%

Total Resources Available for Obligation 1,141 $231,343 1,141 $236,148 1,223 $268,160 1,290 $292,395 5.44% 9.04%

1/ FY 2007 Obligations equal enacted less anticipated lapse

FY 2007 FY 2008 FY 2009 FY 2008

Resources Available for Obligation Request to FY 2009

FY 2007

Obligations Enacted Enacted 1

% Change

DO - 14 
2B – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

Federal Funds 

SALARIES AND EXPENSES: 

For necessary expenses of the Departmental Offices 

including operation and maintenance of the Treasury 

Building and Annex; 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, [$248,360,000] 

$273,895,000, [of which not to exceed $10,840,000 is for 

executive direction program activities; not to exceed 

$9,909,000 is for general counsel program activities; not to 

exceed $44,242,000 is for economic policies and programs 

activities; not to exceed $29,464,000 is for financial 

policies and programs activities; not to exceed $56,775,000 

is for terrorism and financial intelligence activities; not to 

exceed $18,505,000 is for Treasury-wide management 

policies and programs activities; and not to exceed 

$78,625,000 is for administration programs activities: 

Provided, That the Secretary of the Treasury is authorized 

to transfer funds appropriated for any program activity of 

the Departmental Offices to any other program activity of 

the Departmental Offices upon notification to the House 

and Senate Committees on Appropriations: Provided 

further, That no appropriation for any program activity 

shall be increased or decreased by more than 2 percent by 

all such transfers: Provided further, That any change in 

funding greater than 2 percent shall be submitted for 

approval to the House and Senate Committees on 

Appropriations:] Provided [further], That of the amount 

appropriated under this heading, not to exceed $3,000,000, 

to remain available until [September 30, 2009] September 

30, 2010, is for information technology modernization 

requirements; not to exceed [$150,000] $200,000 is for 

official reception and representation expenses; and 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 

The language has been 

amended to remove the 

allocation of appropriated 

funds by budget activity. 

The amended language 

provides flexibility to the 

Secretary of the Treasury

to meet critical 

requirements in a timely 

manner. This 

methodology is in line 

with submissions from

prior years, and will 

make DO’s 

reprogramming 

requirements the same as 

all other Treasury 

bureaus. 

The language requests 

that representation funds 

be increased by $50,000 

to reflect Treasury’s 

greater overseas presence 

and increased 

DO - 15 
accounted for solely on his certificate: Provided further, 

That of the amount appropriated under this heading, 

$[5,114,000] 5,232,443, to remain available until 

[September 30, 2009] September 30, 2010, is for the 

Treasury-wide Financial Statement Audit and Internal 

Control Program, of which such amounts as may be 

necessary may be transferred to accounts of the 

Department’s offices and bureaus to conduct audits: 

Provided further, That this transfer authority shall be in 

addition to any other provided 

in this Act: Provided further, That of the amount 

appropriated under this heading, [$3,000,000] $500,000, to 

remain available until [September 30, 2009] September 30, 

2010, is for secure space requirements: Provided further, 

That of the amount appropriated under this heading, 

[$2,300,000] $1,100,000, to remain available until 

[September 30, 2009] September 30, 2010, is for salary and 

benefits for hiring of personnel whose work will require 

completion of a security clearance investigation in order to 

perform highly classified work to further the activities of

the Office of Terrorism and Financial Intelligence: 

Provided further, That of the amount appropriated under 

this heading, [$2,100,000] $3,400,000, to remain available 

until [September 30, 2010] September 30, 2011, is to 

develop and implement programs within the Office of 

Critical Infrastructure Protection and Compliance Policy, 

including entering into cooperative agreements, Provided 

further, That of the amount appropriated under this 

heading $3,000,000 to remain available until September 

30, 2011, is for modernizing the Office of Debt 

Management's information technology.

international 

responsibilities. 

2C – Legislative Proposals 

Legislation has been proposed that will give the Secretary of the Treasury the ability to

manage the government’s short-term excess operating cash more efficiently. Under the 

current authority, which is codified at 31 U.S.C. 323, the Government is authorized to 

invest its short-term excess cash in obligations of the United States Government and 

depositary institutions, principally banks, savings and loan associations, and credit 

unions. This initiative would enable the Secretary of the Treasury to broaden investment 

options and improve earnings on investments. This initiative is expected to increase the 

interest earnings on the Treasury’s investment of short-term excess cash by 

approximately $10 million a year. Such earnings would be deposited in the general fund 

of the Treasury. 

DO - 16 
This proposal is consistent with recommendations in the September 2007 GAO report 

entitled “Treasury has Improved Short-Term Investment Programs, but Should Broaden 

Investments to Reduce Risks and Increase Return.” In its report, GAO suggests that 

Congress consider providing the Secretary of the Treasury with broader authority in the 

design of an expanded repossession program. Specifically, GAO recommended that 

Treasury explore the reallocation of its short-term investments and, if provided the 

authority to do so, implement a permanent expanded repossession program that would 

meet Treasury’s short-term investment objectives while maintaining current minimal risk 

investment policies. 

DO - 17 
Section 3 – Budget and Performance Plan

This table lists all FY 2009 resources by strategic goal, objective and outcome outlined in 

the FY 2007-2012 Treasury Department Strategic Plan. The Treasury Strategic Plan is a 

corporate level plan for the Department that provides a description of what the agency 

intends to accomplish over the next five years. 

For detailed information about the FY 2007-2012 Treasury Strategic Plan, please go to: 

http://www.treas.gov/offices/management/budget/strategic-plan/

3.1 – Budget by Strategic Goal1

Dollars in Thousands

FY 2008 

Enacted 

FY 2009 

Request

Percent 

Change

AMOUNT AMOUNT AMOUNT

Effectively Managed U.S. Government Finances 56,431 60,087 6.48%

U.S. & World Economies Perform at Full Economic

Potential 78,011 82,007 5.12%

Prevented Terrorism & Promoted the Nation's Security

Through Strengthened International Systems 106,461 112,937 6.08%

Management and Organizational Excellence 25,957 37,364 43.95%

Total $266,860 $292,395 9.57%

TREASURY Strategic Goal

3A – Executive Direction ($21,592,000 from direct appropriations and $700,000 from 

reimbursable programs): The Executive Direction program area provides direction and 

policy formulation to the Department and DO, and interacts with Congress and the public 

on Departmental policy matters. These include: the Office of the Secretary, Deputy 

Secretary, Chief of Staff, Executive Secretary, General Counsel, Legislative Affairs, 

Public Affairs, and Treasurer. 

A portion of the funds from all reimbursable programs are allocated to the Executive 

Direction and Administrative Programs budget activities to support management and 

legal services provided to reimbursable programs 

 

1

 DO activities support each of the Department’s sixteen strategic outcomes. Presenting these dollars at the 

strategic goal level provides a better demonstration of DO’s activity levels. 

DO - 18 
3.2.1 – Executive Direction Budget and Performance Plan

Executive Direction Budget Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $14,430 $16,329 $19,094 $20,749 $21,592

 Reimbursable Resources $0 $0 $660 $0 $700

Total Resources $14,430 $16,329 $19,754 $20,749 $22,292

Budget Activity Total $14,430 $16,329 $19,754 $20,749 $22,292

No specific performance goals/measures are presented for this budget activity as the 

activity supports the mission of the entire Department. 

3B – Economic Policies and Programs ($45,853,000 from direct appropriations and 

$3,200,000 from reimbursable programs): A major mission of the Departmental Offices 

is to promote economic growth and security. The Offices pursue this mission by 

providing economic guidance and support to the Secretary in his role as the President’s 

chief economic adviser. Offices within Economic Policies and Programs monitor 

domestic and international economic conditions and developments, and collect and 

analyze financial data including foreign credits and credit guarantees. They also provide 

advice and assistance to the Secretary in the formulation and execution of U.S. and 

international economic and financial policies. 

Other Resources: Reimbursements totaling $3.2 million are collected from the U.S. 

Agency for International Development for Treasury economic and financial technical 

assistance to foreign governments and from the Mansfield Center for Pacific Affairs for 

personnel services rendered on a rotational basis to the Government of Japan’s Ministry 

of Finance. (Note: A portion of these funds are allocated to the Executive Direction and 

Administrative Programs budget activities to support management and legal services 

provided to reimbursable programs.) 

Office of International Affairs

The mission of the Office of International Affairs is to raise economic growth in 

developed and developing countries; improve financial stability and security in emerging 

and world markets; increase the effectiveness of U.S. assistance to the world’s poorest 

countries; enhance the functioning of the international financial institutions; and promote 

an open and transparent international trade and investment regime. 

IA leads the Treasury Department effort in the development of policies and guidance 

related to international monetary affairs, trade and investment policy, international debt 

strategy, and United States participation in international financial institutions. IA 

coordinates United States economic policies with the finance ministers of other G-7 

industrial nations and prepares the President for annual economic summits. 

DO - 19 
Office of Economic Policy 

The Office of Economic Policy plays a key role in supporting the Secretary by providing 

technical analysis, economic forecasting, and policy guidance on issues ranging from 

changes in entitlement policy to responding to international financial crises. EP provides 

economic intelligence through the analysis and reporting of current and prospective 

economic developments in the U.S. and world economies. EP also provides assistance in 

the evaluation and determination of the appropriate economic approach. 

In recent years, Treasury has taken a leadership role on the Social Security and Medicare 

Working Group with EP representing the Treasury Department. This group has proposed 

and implemented significant changes in the Trustees Reports, including perpetuity 

estimates of unfunded liabilities in the Social Security and Medicare reports. EP has 

published a series of Issue Briefs detailing a set of criteria and associated metrics to allow 

evaluations and analysis of options related to Social Security reform. 

3.2.2 – Economic Policies and Programs Budget and Performance Plan 

Economic Policies and Programs Budget 

Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $31,203 $31,691 $35,581 $44,242 $45,853

 Reimbursable Resources $2,379 $8,504 $3,195 $7,204 $3,200

Total Resources $33,582 $40,195 $38,776 $51,446 $49,053

Budget Activity Total $33,582 $40,195 $0 $51,446 $49,053

Economic Policies and Programs Budget

Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

Number of new trade and investment 

negotiations underway or completed (Oe) 

 N/A N/A N/A Baseline 6

Improve International Monetary Fund (IMF) 

effectiveness and quality through periodic 

review of IMF programs (%)(Oe) 

 78% 100% 100% 90% 90%

Percentage of grant and loan proposals 

containing satisfactory frameworks for results 

measurement (%) (Oe) 

 78% 88% 92% 90% 90%

U.S. unemployment rate (%) (Oe) 5% 5% 5% 5% 5%

US Real Gross Domestic Product (GDP) 

growth rate (%) (Oe)

 4% 3% 2% 3% 3%

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

Description of Performance: The Treasury Department is committed to participating in 

the negotiation and implementation of international agreements, which help to remove 

trade and investment barriers and stimulate domestic and global growth. This goal is 

accomplished by increasing the number of new Free Trade Agreements (FTAs) and 

Bilateral Investment Treaties (BITs). The Department continues to seek strong 

commitments from its trading partners to ensure those markets are available to the United 

States on a fair and open basis. Once implemented, the agreements serve as a core 

element for a trading partner’s economic infrastructure, helping to enhance international 

DO - 20 
economic and financial stability. In FY 2007, the Department of the Treasury surpassed 

its target. 

To help ensure that the Multilateral Development Banks (MDBs) demonstrate results of 

their development assistance, MDBs closely monitor the percentage of grant and loan 

proposals containing satisfactory measurement frameworks. Over the past few years, 

most of the MDBs have made substantial progress towards developing frameworks that 

measure the results of their development assistance. For FY 2007, 92 percent of grant 

and loan proposals contained results measurement frameworks, exceeding the 

Department’s target of 90 percent. 

Currently, DO is working to develop meaningful performance measures that will align to 

the Treasury Department’s Strategic Plan. Once completed in FY 2008, these new 

measures will replace the existing measures. 

3C – Financial Policies and Programs ($34,735,000 from direct appropriations and 

$4,300,000 from reimbursable programs): Offices within Financial Policies and 

Programs monitor and provide advice and assistance to the Secretary in the areas of tax 

policy and domestic finance. 

Other Resources: Reimbursements totaling $4.3 million are collected from the Council 

of Economic Advisors and the Board of Governors of the Federal Reserve for personnel 

services rendered. (Note: A portion of these funds is allocated to the Executive 

Direction and Administrative Programs budget activities to support management and 

legal services provided to reimbursable programs.) 

Office of Tax Policy

The Office of Tax Policy supports the Secretary of the Treasury through the provision of 

technical analysis, economic forecasting, and policy guidance on issues relating to 

Federal tax policy. TP’s analysis also supports the Department’s management of the

Federal revenues, collection of tax revenues due the United States, and Federal debt 

management - all essential for ensuring the integrity of the American financial system. 

TP has supported the Administration’s health care initiatives through significant and 

timely analysis of the taxation and employee benefits issues underlying many health and 

Medicare reform proposals. TP is currently facing two significant challenges: to improve 

its analytical capabilities by expanding its data systems and its economic modeling 

capabilities, and, working with the Internal Revenue Service, to reduce the “tax gap” 

through initiatives to enhance taxpayer compliance. 

DO - 21 
Office of Domestic Finance 

The mission of the Office of Domestic Finance is to advise and assist the Secretary and 

Deputy Secretary on the domestic financial system, fiscal policy and operations, 

governmental assets and liabilities, and related economic and financial matters, as well as 

create the conditions necessary for the financial sector to be resilient in the event of

unforeseeable future events. 

DF covers diverse areas such as trading and clearing initiatives, risk mitigation, 

derivatives issues, bankruptcy/netting, hedge funds, Social Security reform, contingency 

of operations/business continuity planning, corporate governance and accounting issues, 

maintenance of the integrity of United States currency (including new currency design 

features), threat assessment issues, specific research and development, program planning 

and control, and analysis of policies related to government borrowing, banking and 

investing. 

3.2.3 – Financial Policies and Programs Budget and Performance Plan 

Financial Policies and Programs Budget 

Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $25,231 $26,308 $24,878 $29,465 $34,735

 Reimbursable Resources $900 $936 $4,304 $936 $4,300

Total Resources $26,131 $27,244 $29,182 $30,401 $39,035

Budget Activity Total $26,131 $27,244 $0 $30,401 $39,035

Financial Policies and Programs Budget

Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

Audit opinion received on government-wide 

financial statements (Oe) 

 1 1 1 1 1

Release Federal Government-wide financial

statements on time (Oe) 

 1 1 1 1 1

Variance between estimated and actual 

receipts (annual forecast) (%) (Oe) 

 5% 4% 2% 5% 5%

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction. *This data is an 

estimate. 

Description of Performance: In FY 2007, for the fourth consecutive year, the Treasury 

Department’s Office of Domestic Finance released the federal government-wide financial 

statements on time, and expects to meet its target for both FY 2008 and 2009. The 

prompt release of this statement is important because it represents the culmination of the 

recent government-wide campaign to accelerate the issuance of financial reporting. In 

addition, the Department manages the government’s cash position to ensure that funds 

are available on a daily basis to cover federal payments and to maximize investment 

earnings and minimize borrowing costs. The Department of the Treasury met its goal of 

receiving audit opinions on government-wide financial statements, and has plans to meet 

FY 2008 and 2009 targets. 

DO - 22 
The Office of Fiscal Projections ensures that funds are available on a daily basis to cover 

federal payments, maximize investment earnings, and minimize borrowing costs. The 

metric “variance between estimated and actual receipts” measures the accuracy of the 

office’s monthly forecast of budget receipts over the entire year. 

In FY 2007, the Office of Fiscal Projections continued to improve its receipt forecasting 

and exceeded its targeted variance level of 5 percent. In FYs 2008 and 2009, a new 

analytical functionality will be added to make additional improvements in receipt 

projections. Combining improved receipt forecasting with more accurate projection of 

outlays and other cash flow components will allow the Department to reach its primary 

goals of cash and debt management: (1) lowest cost of borrowing over time; (2) adequate 

cash balances to meet Federal obligations at all times; and (3) investment of excess cash 

balances to increase the rate of return and lower even further the net cost of borrowing. 

After review, it has been determined that the current performance measures are not 

adequate or meaningful. Therefore, the Department is in the process of developing new 

measures that align with the Treasury Strategic Plan. Once the new measures have been 

developed in FY 2008, existing measures will be discontinued and replaced. 

3D – Terrorism and Financial Intelligence ($61,712,000 from direct appropriations 

and $4,000,000 from reimbursable programs): The Office of Terrorism and Financial 

Intelligence (TFI) marshals the department's functions that strengthen national security 

with the twin aims of safeguarding financial systems against illicit use and combating 

rogue nations, terrorist facilitators, money launderers, drug kingpins, proliferators of 

weapons of mass destruction, and other national security threats. 

Other Resources: Reimbursements totaling $4.0 million are collected from the Executive 

Office of Asset Forfeiture and the U.S. Department of Defense. (Note: A portion of these 

funds is allocated to the Executive Direction and Administrative Programs budget 

activities to support management and legal services provided to reimbursable programs.) 

 

The Office of Foreign Asset Control 

The Office of Foreign Asset Control is dedicated to carrying out the complex mission of 

administering and enforcing economic and trade sanctions based on U.S. foreign policy 

and national security goals. OFAC administers approximately 30 economic sanctions 

programs against foreign countries, targeted regimes, and entities and individuals, 

including residual enforcement actions associated with programs that have been lifted. 

Although these programs differ in terms of their scope and application, they all involve 

the exercise of the President’s constitutional and statutory wartime and national 

emergency powers to impose controls on transactions and trade, and to freeze foreign 

assets that come within the jurisdiction of the United States. 

The majority of programs administered and enforced by OFAC arise from the President’s 

authorities under the International Emergency Economic Powers Act (IEEPA). In 

DO - 23 
administering and enforcing these economic sanctions, OFAC must maintain a close 

working relationship with other federal departments and agencies in order to ensure both 

that these programs are implemented in a manner consistent with U.S. national security 

and foreign policy interests, and that they are enforced effectively. To fulfill its mission, 

OFAC works directly with the Departments of State, Commerce, and Justice (including

the Federal Bureau of Investigation and the Drug Enforcement Administration); the 

Department of Homeland Security's U.S. Customs and Border Protection and U.S. 

Immigration and Customs Enforcement; the Department of Defense; bank regulatory 

agencies; and other law enforcement and intelligence community agencies. 

Office of Intelligence and Analysis

The Office of Intelligence and Analysis is responsible for the receipt, analysis, collation, 

and dissemination of foreign intelligence and foreign counterintelligence information 

related to the operation and responsibilities of the Department of the Treasury. OIA’s 

mission is to support the formulation of policy and execution of Treasury authorities. 

OIA executes this mission by producing expert intelligence analysis on financial and 

other support networks for terrorist groups, proliferators, and other key national security 

threats, and by providing timely, accurate, and focused intelligence on the full range of 

economic, political, and security issues. 

The Office of Terrorist Financing and Financial Crimes

The Office of Terrorist Financing and Financial Crimes is the policy and outreach 

apparatus for the Office of Terrorism and Financial Intelligence on terrorist financing, 

money laundering, financial crime, and sanctions issues. It develops and implements 

strategies, policies, and initiatives to identify and address vulnerabilities in the U.S. and 

the international financial system and to disrupt and dismantle terrorist and WMD 

proliferation financial networks. TFFC collaborates with the other elements of TFI and 

other Treasury offices and works closely with the federal law enforcement community – 

in particular, IRS-CI criminal investigators – as well as with the regulatory community, 

the private sector, and its counterparts abroad to identify and address terrorist financing 

and WMD proliferation threats. 

More specifically, TFFC leads and coordinates the United States representation at 

international bodies dedicated to fighting terrorist financing and financial crime such as 

the Financial Action Task Force and increases our multilateral and bilateral efforts in this 

field. The office advances international standards, conducts assessments, and applies 

protective countermeasures against high-risk foreign jurisdictions and financial 

institutions. Bilaterally, TFFC works with foreign counterparts to craft strategies to 

jointly attack terrorist financing both globally and within specific regions. 

DO - 24 
3.2.4 – Terrorism and Financial Intelligence Budget and Performance Plan 

Terrorism and Financial Intelligence Budget 

Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $34,796 $39,540 $43,115 $56,775 $61,712

 Reimbursable Resources $6,167 $6,987 $3,934 $6,987 $4,000

Total Resources $40,963 $46,527 $47,049 $63,762 $65,712

Budget Activity Total $40,963 $46,527 $47,049 $63,762 $65,712

Terrorism and Financial Intelligence 

Budget Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

Increase the number of outreach engagements

with the charitable and international financial 

communities (Ot) 

 95 45 85 70 70

Number of countries that are assessed for 

compliance with the Financial Action Task

Force (FATF) 40+9 recommendations (Ot)

 49 5 6 12 12

Number of open civil penalty cases that are 

resolved within the Statute of Limitations

period (Ot) 

 85 85 296 120 120

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

Description of Performance: Currently, DO is working to develop meaningful 

performance measures that will align to the Treasury Department’s Strategic Plan. Once 

these new measures have been developed in FY 2008, existing measures will be 

discontinued and replaced. 

3E – Treasury-wide Management and Programs ($19,009,000 from direct 

appropriations and $2,700,000 from reimbursable programs): Treasury-wide

Management’s (TWM) primary responsibility within the Department of Treasury is to 

create the conditions that allow for Administration priorities and goals to be achieved in 

the most efficient and effective manner. Treasury-wide Management provides strategic 

plans and policy direction in the fields of: human resources; emergency management 

(including Treasury employee evacuation and Continuity of Operations); information 

technology security; and financial administration (including the formulation and 

management of the Treasury budget). The development of these integrated plans helps to 

align policy and operations in order to produce maximum value for the American people. 

Other Resources: Reimbursements totaling $2.7 million are collected from the Internal 

Revenue Service Oversight Board, Department of Homeland Security, D.C. Pensions, 

and other Treasury bureaus for services rendered. (Note: A portion of these funds is 

allocated to the Executive Direction and Administrative Programs budget activities to 

support management and legal services provided to reimbursable programs.) 

DO - 25 
3.2.5 – Treasury-wide Management and Programs Budget and Performance Plan 

Treasury-wide Management and Programs

Budget Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $16,245 $16,674 $15,705 $18,505 $19,009

 Reimbursable Resources $0 $3,373 $2,696 $3,373 $2,700

Total Resources $16,245 $20,047 $18,401 $21,878 $21,709

Budget Activity Total $16,245 $20,047 $18,401 $21,878 $21,709

Treasury-wide Management and Programs

Budget Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

Injury and illness rate Treasurywide-including

DO (Oe) 

 3 1 1 1 1

Number of open material weaknesses closed 

identified (Oe) 

 7 1 0 3 1

Management cost per Treasury employee ($) 

(E) 

$ 39 $ 41 $ 30 $ 38 $ 38

Complete investigations of EEO complaints 

within 180 days (%) (Oe) 

 36% 20% 52% 50% 50%

Percent of complainants informally contacting

EEO (for the purposes of seeking counseling

or filing a complaint) who participate in the 

ADR process (% ) (Oe) 

 25% 25% 29% 30% 30%

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

Description of Performance: DO, through TWM, is committed to building a strong 

institution that is dedicated to serving the public’s interest and focused on delivering 

results. The focus of the past year has been on ways to measure progress toward key 

goals related to building a world-class organization Treasury-wide. 

The Department met its goal of completing investigations of Equal Employment 

Opportunity (EEO) complaints within 180 days. In FY 2007, the Treasury Department 

instituted service level standards to assess the performance of the Treasury Complaint 

Mega Center, which processes all EEO complaints for all Treasury bureaus. This is part 

of the Department’s initiative to improve oversight of the center and ensure continuous 

improvement in operations. The establishment of the position for Chief, Complaint 

Operations, is needed to assist the efforts to hold the organization accountable for 

improvements in quality and reduction in timeframes to process complaints. 

The FY 2007 performance goal to reduce the percent of complainants informally 

contacting EEO (for the purposes of seeking counseling or filing a complaint) who 

participate in the ADR process was met. However, to reduce the Department’s costs, 

increased attention and emphasis should be placed on effective dispute prevention 

programs, in addition to an effective ADR program that is viewed as fair and objective by 

employees and managers. In FY 2006, the Treasury Department spent over $1 million 

dollars to settle EEO complaints, and over $9 million in a U.S. Mint class action 

settlement. 

In FY 2004, the Department of Labor recognized Treasury for reducing the total injury 

and lost time injury rates by more than 10 percent each, well below the recommended 3 

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percent for all federal agencies. In 2007, Treasury continued its aggressive occupational 

safety and health program and had an additional 1.4 percent reduction. In February 2007, 

Treasury received an award from the Department of Labor for reducing more injuries and 

illnesses, including those that resulted in time away from work, than any other Federal 

Agency. 

The Department works to attract and retain the best talent while rewarding employees for 

their individual performance. Building a stronger management infrastructure through 

Department-wide management training and by linking organization accomplishments to 

individual performance is a key step. The Department’s leadership strives to create an 

environment that offers purposeful, challenging work in a constructive performance 

culture. TWM has laid a foundation that is focused on results-oriented performance, 

leadership succession planning, and accountability, to not only to maintain the present 

skills base and diversity in the Department’s workforce, but to also to meet future human 

resource needs. The Department-wide succession plan ensures that future management

acquires appropriate skills to enable them to lead the Department in an ever-changing 

environment. 

3F – Administration Programs ($90,994,000 from direct appropriations and 

$3,600,000 from reimbursable programs): Administration Programs provides operational 

support and shared services to all offices within DO. Activities include accounting, 

budget, human resources, information technology, procurement, facilities support, and 

travel services. Approximately one-third of the budget activity relates to information 

technology support (including desktop computers, printers, faxes, copiers, and helpdesk 

support). Another one-third consists of shared services: GSA rent, utilities, 

telecommunications, printing and graphics, public transit subsidy, workers compensation, 

and financial system support. By centralizing shared services, economies of scale and 

workload efficiencies are achieved. The final third consists of employee salaries, routine 

building maintenance, custodial services, library services, and the like. 

A portion of the funds from all reimbursable programs is allocated to the Executive 

Direction and Administrative Programs budget activities to support management and 

legal services provided to reimbursable programs. 

3.2.6 – Administration Programs Budget and Performance Plan 

Administration Programs Budget Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $56,506 $63,094 $75,154 $78,624 $90,994

 Reimbursable Resources $0 $0 $3,028 $0 $3,600

Total Resources $56,506 $63,094 $80,878 $78,624 $94,594

Budget Activity Total $56,506 $63,094 $80,878 $78,624 $94,594

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No specific performance goals/measures are presented for this budget activity as the 

activity supports the mission of the entire DO, whose work is captured in other 

performance measures. 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treasury.gov/offices/management/dcfo/accountability-reports/2007-par.shtml

DO - 28 
Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

By providing sound advice and guidance on staff employment/retention, recognition, 

relations/benefits, performance and development, the DO’s Office of Human Resources 

(OHR) helps ensure the availability of HR tools required to manage human capital 

effectively to support relevant strategic goals and mission accomplishment. 

Specific accomplishments for fiscal year 2007 include the following: 

HC Strategic Goal 1: Organizational Effectiveness – Align human capital plans, 

strategies, and systems to achieve organizational effectiveness and mission

accomplishment.

• Upon issuance of the 2006 Federal Human Capital Survey Results by the 

Office of Personnel Management (OPM), OHR immediately took assessment 

of the results specific to DO, which were generally quite favorable. 

Management briefings were conducted and action plans implemented to 

address areas of concern and the greatest challenges. Many of the issues 

raised in the survey were addressed through prior initiatives to revise several 

DO policies such as those covering Performance Management and telework. 

New strategies are being developed to better assess the training/developmental 

needs of all DO staff. 

• Several DO Management and Policy offices have been identified for skill gap 

analyses and detailed succession plans to ensure vital components within 

Main Treasury continue to have the talent and skills necessary to accomplish 

their missions. 

• Within OHR, further organizational restructuring resulted in the establishment 

of an area specifically dedicated to staff development and workforce analysis. 

Enhancements were made to all existing supervisory/leadership programs to 

better clarify training objectives and complete requirements. and ensure closer 

alignment with DO subject matter that is mission-related. 

• OHR has worked to establish Senior Administrative Contacts for each policy 

office to partner with in the implementation of significant HR initiatives and 

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provide administrative support and a sounding board for management to 

communicate their own unique organizational challenges. 

HC Strategic Goal 2: Recruitment and Diversity – Recruit and hire a highly skilled 

and diverse workforce aligned with business goals. 

• OHR continues to work closely with OIA to effectively meet and deal with 

significant recruitment challenges and quickly filling analyst positions with 

the best-qualified individuals to support anti-terrorist efforts. 

• DO continued its exercise of excepted appointments to ensure that new talent 

is hired as quickly as possible, e.g., by using Presidential Management 

Fellows, the Student Career Experience Program, DO specific fellowship 

programs, and other authorities. DO actively supports initiatives aimed at 

increasing the diversity of its workforce, including the use of student interns 

under the Hispanic National Internship Program and the Washington 

Internships for Native American Students (WINS). Selected entry-level 

vacancy announcements are also referred automatically to organizations 

assisting qualified disabled applicants. 

• DO also continues to advocate the use of pay and workplace scheduling 

flexibilities, where appropriate, e.g., recruitment bonuses, superior 

qualifications appointments, alternative work schedules and telework. 

HC Strategic Goal 3: Employee Retention and Satisfaction – Retain a high 

performing workforce while maintaining an environment conducive to a high level of 

employee satisfaction. 

• OHR has continued conducting “Benefits Brown Bag” sessions. These onehour sessions are scheduled to address staff benefit programs to help 

employees make better informed choices and relevant decisions in order to 

enhance their quality of life. Sessions fill quickly and the feedback is 

overwhelmingly positive. 

• Because of the substantial number of DO employees eligible to retire within 

the next five years, OHR plans to contract with an outside vendor to provide 

several retirement seminars during this fiscal year. 

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• Plans have also been implemented to conduct a special session for DO staff 

concerning Estate Planning. 

HC Strategic Goal 4: Information Technology – Enhance workforce capabilities to 

support the use of current, new and evolving technologies. 

• Plans are underway to implement the E-OPF (Official Personnel Folder) 

initiative mandated by the Office of Personnel Management by FY 2010. Cost 

projections have been prepared, appropriate requests submitted and a search 

has begun for possible immediate residual funding resources. Electronic 

employment files will contribute to the paperless, efficient, versatile operation 

of OHR particularly in meeting the challenges associated with employment 

data needs on short notice or during government shutdowns or other 

unexpected emergencies. Employee access to electronic SF-50 Personnel 

Actions was accomplished in July, 2007. 

• Concerted efforts have been implemented to identify those remaining DO staff

not registered into the HR Connect system. A concentrated marketing effort 

and plan is being implemented to get to a 100% staff registration rate. A 

special training system on HR Connect system capabilities has been provided 

to the Senior Administrative Contacts. Also, an HR Connect training session 

for participants was incorporated into the DO New Supervisory Readiness 

Training Program.

• A new OHR phone system is being implemented to connect customers 

directly to the appropriate resource based on specific customer needs. Callers 

will also have the option of remaining on the line for the next available staff

member (as opposed to leaving a voicemail). 

As in the previous fiscal year, DO is confronted with numerous human capital 

challenges in FY 2008: 

• Increasing competition from private sector and other government agencies for 

mission-critical positions such as intelligence analysts, economists and 

information technology specialists. 

Strategies for Addressing Challenge: 

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• Increase education about and support of a variety of 

hiring/retention flexibilities and incentives, such as direct 

hire (where request to OPM is appropriate), superior 

qualifications appointments, recruitment bonuses, student 

loan repayment, retention allowances, alternative work 

arrangements/schedules and other work life issues. 

• Contractual arrangements are under consideration to obtain 

the services of the Corporate Executive Board Recruiting 

Roundtable to explore cutting edge strategies to meet DO’s 

most challenging recruitment goals. 

• Enhance workplace flexibilities such as implementation of 

a revised telework policy to attract good applicants, 

increase employee job satisfaction, and retain employees 

them for years to come. 

• Loss of institutional knowledge through retirement waves, particularly for critical 

subject experts, managers and senior executives. 

Strategies for Addressing Challenge: 

• Increase emphasis on determining leadership bench 

strength and supporting leadership/executive development 

programs that help to identify and prepare cadres of future 

leaders, and gain approval to hire at a level needed to 

continue to meet mission objectives. 

• Work with DO policy offices to identify succession issues 

and develop appropriate strategies, emphasizing an overall 

need to conduct workforce planning to transition and 

maintain technical knowledge. 

• Implement a broad, systematic approach whereby both line 

staff and management can assess individual staff training 

needs on an annual basis and identify relevant fiscal 

requirements in meeting them. 

• Instilling and developing a performance management culture that is resultsoriented. 

Strategies for Addressing Challenge: 

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DO - 33 

• Implementation of a revised performance management 

policy that is clear, direct, and identifies and links 

commitments to organizational goals that are measurable 

and results-based. 

• Conduct perpetual reviews of DO policy office 

performance management programs to ensure staff are on 

performance plans and receiving timely feedback from 

their supervisors. 

• Ensure performance awards are distributed in a fair manner 

and that their justification is based on objective, relevant, 

and merit-based criteria. 
DO - 34 

4.1 – Summary of IT Resources Table 

Dollars in Thousands

Information Technology Investments 1/

FY 2006 FY 2007 FY 2008 

Major IT Investments / Funding Source Budget Activity

& Earlier 

Enacted 2/ Enacted Enacted 

Securities Management Financial Policies and Programs $425 $0 $0 N/A Treasury Foreign Intelligence Network (TFIN)

Terrorism and Financial Intelligence(TFI) $0 $0 $3,000 N/A 

Treasury Secure Data Network (TSDN) Executive Direction, Economic Policy, TFI $2,772 $1,283 $3,072 139.4% Subtotal, Major IT Investments $3,197 $1,283 $6,072 373.3% Non-Major IT Investments $4,937 $5,112 $4,779 -6.5% Infrastructure Investments $20,100 $26,483 $29,347 10.8% Enterprise Architecture $1,397 $0 $2,120 N/A Total IT Investments $29,631 $32,878 $42,318 28.7% 1/ This chart includes appropriated resources only, and may not reflect total project costs.2/ This column reflects appropriated resources provided to a project in FY 2006 and any previous years.

% Change from

FY07 to FY08
4B – Information Technology Strategy 

The Office of the Chief Information Officer (OCIO) Telecommunications Management 

organization (OCIO-TM) provides direct and indirect support to the Secretary in the fight 

against terrorism by providing technology and communications required to ensure a 

stable domestic and international economy. In addition to supporting the Secretary, the 

OCIO-TM supports the IT infrastructure and operations of critical offices including the 

Office of the Secretary, the Assistant Secretary for Management, DO policy offices, and 

the Office of Terrorism and Financial Intelligence. OCIO-TM also provides the Office of

Domestic Finance with support to facilitate timely decisions on yield curve and interest 

rates; provides the Office of Intelligence Analysis with the ability to communicate timely 

data between bureaus and other intelligence communities; shares finance-related data to 

protect the banking and financial industry against cyber-terrorism; and provides oversight 

to the District of Columbia's pension fund. 

As part of the OCIO-TM strategy the CIO’s office established a governance structure that 

ensures Treasury delivers quality, responsive services that securely meet our customers 

needs most economically. As discussed in Section 1B, the Department of the Treasury is 

taking steps to improve its IT management. The Department is now including all IT 

investments under the Department’s IT Capital Planning and Investment Control Policy

processes; has established a process to ensure that the Project and Program Managers are 

certified in accordance with OMB requirements; and is re-establishing the Executive 

Investment Review Board (E-Board). 

Modernize the DO IT Infrastructure: Modernization of the DO IT infrastructure

provides enhanced functionality, performance, and security to allow offices to 

achieve their missions more effectively. Specific projects will include enhanced 

disaster recovery capabilities, consolidation of remote access solutions, software and 

hardware upgrades, and overall optimization of the DO IT network. Realignment 

with the Infrastructure Line of Business is in the initial stages, and DO continues to 

integrate and consolidate network components where feasible and practical. 

Improve IT Governance and Project Management: OCIO is committed to 

ensuring that information and IT resources are managed efficiently and effectively. 

In support of DO IT governance and project management, the OCIO 

Telecommunications Management team was successful in establishing a separate 

governance structure for the Departmental Offices to provide greater oversight and 

guidance to the non-enterprise major and non-major investments. 

The Departmental Office’s envisions a two year effort to consolidate services under 

the pending OCIO TNET wide area network service offering. The vision is as 

follows: 

FY08 Transition of Existing TCS Contract Services: The risk-mitigating strategy 

of the Departmental Offices (OCIO, HQ IT) is to limit the FY 2008 focus to 
transitioning the existing DO funded TCS services to the TNET offering. The TCS 

contract provisioned services for the DO includes: 

o 36 TCS circuits of various types 

o 3 Firewalls 

o 4 ATM connections 

o VPN services; and 

o Hosting services for a DO application. 

FY09 Business Case Assessment for Further Consolidation: Outside the TCS 

contract, DO has an inventory of circuits and services obtained from a it’s existing 

GSA and Treasury infrastructure contracts. In early FY 2009, HQ IT will conduct 

Business Case Assessment for the consolidation of these non-TCS circuits and 

network services to the Treasury TNET contract. Thereafter, based upon the funding 

and the business case approved recommendations, the DO will commence a two-year

phased consolidation consistent with the business case recommendations. 

DO investments met 99 percent of their performance goals in FY 2007. In its diligence 

to provide taxpayers with the most efficiency, OCIO-TM continues working with 

Enterprise Architecture (EA) staff and the Office of Performance Budgeting (OPB) to 

improve its metrics and methodologies to better track established milestones. For 

instance, DO delivered uninterrupted network availability 99.9 percent of the time in FY 

2007 with a satisfaction rate of 3.61, slightly higher than the planned 3.5. 

The secure systems Treasury Foreign Intelligence Network (TFIN) and the Treasury 

Secure Data Network (TSDN) work in conjunction with the intelligence community to 

provide faster, more timely data to an increased number of users with access to secret and 

top secret information in order to support the fight against terrorism. By the end of the 

FY 2007, all metrics were on target for both TSDN and TFIN with the number of TFIN

users increasing to 115. 

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4.2 – PART Evaluation Table 

PART Name: Economic and Trade Sanctions Program - OFAC

Year PARTed: FY 2002

Rating: RND

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

2. Adopting annual performance goals and aligning them with the long-term performance goals. 

1. The program lacks long-term performance goals with specific targets.

2. The program has not yet instituted annual performance goals to determine the effectiveness of its

sanctions. 

3. The program is lacking unit cost measures. 

1. Working to develop long-term performance goals with specific timeframes and measures.

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

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

DO - 37 
4C – Terrorism Risk Insurance (TRIA) 

The Terrorism Risk Insurance Program Reauthorization Act of 2007 (P.L. 110-160) 

reauthorized and revised the program established by the Terrorism Risk Insurance Act 

(TRIA) of 2002 (P.L. 107-297). The Act extended the Terrorism Insurance Program for 

seven years, through December 31, 2014. The 2007 extension of TRIA added a 

requirement for commercial property and casualty insurance companies to make available 

coverage for losses from domestic as well as foreign acts of terrorism. The Act maintains 

for all seven years an insurer deductible of 20 percent of direct earned premiums and an 

insurer co-payment of 15 percent of insured losses above the insurer's deductible. In 

addition, the Act sets the event trigger amount for Federal payments at $100 million in 

aggregate insured losses from an act of terrorism and the annual cap of $100 billion on 

total insurer losses from acts of terrorism for which payment of the Federal share of

compensation could be made. The 2007 extension changes recoupment provisions, 

requiring Treasury to collect 133 percent of the Federal payments made under the 

program up to $27.5 billion, and accelerates time horizons for recoupment by certain 

dates up to September 30, 2017. 

The Budget, for the first time, includes the estimated Federal cost of compensating 

providers of terrorism risk insurance, reflecting the 2007 TRIA extension. The growth in 

the private insurance market for this coverage provides data in the form of insurance 

premiums that show how private insurers estimate the likelihood of attack and price their 

projected losses. Using this market driven data, the Government can project annual 

outlays and recoupment under TRIA. These estimates represent the weighted average of 

TRIA payments over a full range of scenarios, most of which include no acts of terrorism

(and therefore no TRIA payments), and some of which include acts of terrorism of 

varying magnitudes. The Budget projections, however, are in no way an official forecast 

of future attacks. On this basis, the Budget projects the 2007 TRIA extension will have a 

net deficit impact (spending less receipts from premium surcharges) of $1.78 billion over 

the 2009-2013 period and $3.85 billion over the 2009-2018 period. 

4.3 - TRIA Baseline Outlays and Receipt Table 

Dollars in billions 

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009-

2013

2009-

2018

Changes in Direct Spending (Insurance Claim Outlays)

Projected Budget Authority 0.1 0.4 0.7 1 1.3 1.4 1.6 1.5 1.2 0.9 0.6 4.9 10.8

Projected Outlays 0.1 0.4 0.7 1 1.3 1.4 1.6 1.5 1.2 0.9 0.6 4.9 10.8

Change in Revenues (Recoupment of Claim Outlays)

Projected Revenues 0 0.1 0.3 0.6 1.3 0.8 0.9 1 1 0.8 0.1 3.1 6.9

Net Impact

Projected Net Outlays 0.1 0.3 0.4 0.5 -0.1 0.7 0.7 0.5 0.3 0.1 0.5 1.8 3.8

DO - 38