Appendices

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Appendix A: Organizations of the Department of the Treasury

Appendix B: The Strategic Framework of the Department of the Treasury

Appendix C: The Strategic-Operational Relationship

Appendix D: Key Factors Affecting the Strategic Outlook of the Department of the Treasury

Appendix E: Summary of Consultation Efforts

Appendix F: Strategic Goal Linkage to Federal Partners

Appendix A: Organizations of the Department of the Treasury

The Department of the Treasury (www.treas.gov) is organized into two major components, the departmental offices and the bureaus. The departmental offices are primarily responsible for policy formulation, while the bureaus are primarily the operating units of the organization.

Departmental Offices

Domestic Finance (www.treas.gov/offices/domestic-finance/) advises and assists in areas of domestic finance, banking, and other related economic matters. In addition, this office develops policies and guidance for Treasury Department responsibilities in the areas of financial institutions, federal debt finance, financial regulation, capital markets, financial management, fiscal policy and cash management decisions.

Economic Policy (www.treas.gov/offices/economic-policy/) reports on current and prospective economic developments and assists in the determination of appropriate economic policies. The office is responsible for the review and analysis of domestic economic issues and developments in the financial markets.

Terrorism and Financial Intelligence (www.treas.gov/offices/enforcement/) marshals the Department’s intelligence and enforcement functions with the twin aims of safeguarding the financial system against illicit use and combating rogue nations, terrorist facilitators, money launderers, drug kingpins, and other national security threats.

International Affairs (www.treas.gov/offices/international-affairs/) advises and assists in the formulation and execution of U.S. international economic, financial monetary, trade, investment, bilateral aid, environment, debt, development, and energy policy, including U.S. participation in international financial institutions.

Tax Policy (www.treas.gov/offices/tax-policy/) develops and implements tax policies and programs, reviews regulations and rulings to administer the Internal Revenue Code, negotiates tax treaties and provides economic and legal policy analysis for domestic and international tax policy decisions. Tax policy also provides estimates for the President’s budget.

Treasurer of the United States (www.treas.gov/offices/treasurer/) advises the Secretary on matters relating to coinage, currency, and the production of other financial instruments. The Treasurer also serves as one of the Department’s principal advisors and a spokesperson in the area of financial literacy and education.

The Community Development Financial Institutions Fund (www.cdfifund.gov) expands the capacity of community development financial institutions and community development entities to provide credit, capital, tax credit allocations, and financial services to underserved populations and communities in the United States.

Internally, Treasury’s Departmental Offices are responsible for the overall management of the Department. The Office of Management and the Chief Financial Officer is responsible for internal management and controls. Support organizations include General Counsel, Legislative Affairs, and Public Affairs. Also, two inspector general organizations, the Treasury Inspector General for Tax Administration and the Office of the Inspector General provide independent audits, investigations, and oversight to the Department of the Treasury and its programs.

Bureaus

Bureaus employ 98 percent of the work force and are responsible for carrying out specific operations assigned to the Department.

The Alcohol and Tobacco Tax and Trade Bureau (www.ttb.gov) collects excise taxes on alcohol, tobacco, and firearms that are lawfully due the government, protects consumers of alcoholic beverages through voluntary compliance programs that are based on education and enforcement to ensure a fair marketplace, and assists industry members in understanding and complying voluntarily with federal tax, product, and marketing requirements.

The Bureau of Engraving and Printing (www.moneyfactory.gov) designs and manufactures high quality notes and other financial documents that deter counterfeiting and meet customer requirements for quality, quantity, and performance.

The Bureau of the Public Debt (www.publicdebt.treas.gov) borrows the money needed to operate the federal government through the sale of U.S. Treasury marketable, savings, and special purpose securities. In addition, it accounts for and services the resulting public debt and provides reimbursable support services to federal agencies.

The Financial Crimes Enforcement Network (www.fincen.gov) safeguards the financial system from the abuses of financial crime, including terrorist financing, money laundering, and other illicit activity.

The Financial Management Service (www.fms.treas.gov) provides central payment services to federal program agencies, operates the federal government’s collections and deposit systems, provides government-wide accounting and reporting services and manages the collection of delinquent debt owed to the U.S. Government.

The Internal Revenue Service (www.irs.gov) is the largest of the Department’s bureaus and it determines, assesses, and collects tax revenue for the federal government.

The United States Mint (www.usmint.gov) designs, produces, and issues circulating and bullion coins, numismatic coins and other items, Congressional gold medals, and other medals of national significance. The United States Mint maintains physical custody and protection of the nation’s gold assets.

The Office of the Comptroller of the Currency (www.occ.treas.gov) charters, regulates, and supervises national banks to ensure a safe, sound, and competitive banking system that supports citizens, communities, and the economy.

The Office of Thrift Supervision (www.ots.treas.gov) charters, examines, supervises, and regulates federal and many state-chartered thrift associations in order to maintain their safety and soundness and compliance with consumer laws, and to encourage a competitive industry that meets America’s financial services needs.

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Appendix B: The Strategic Framework of the Department of the Treasury

The Department’s strategic framework is a summary of its goals, objectives, outcomes, value chains, strategies, indicators, and measures. This framework provides the basis for performance planning and continuous improvement.

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Appendix C: The Strategic-Operational Relationship

The following chart shows the relationship between the Department’s strategic goals and its annual program performance goals.

The Treasury Department’s strategic goals are long-term outcomes which will assist the organization in achieving its mission. Strategic objectives are broad-based outcome statements for a group of value chains. Value chains are programs grouped by a common purpose. Value chain outcomes are important results for each of the Department’s major functions. Departmental strategies are agency-wide methods used to achieve value chain outcomes and guide program activities.

To achieve performance goals, program resources must be properly managed to generate desired outcomes and output. Departmental indicators and measures are used to guide the development of long-term and annual performance targets associated with performance goals, which are essential components of the annual performance budget.

The example below illustrates how the “disburse” value chain outcome links to performance goals, measures, and costs. This value chain supports the strategic goal of “Effectively Managed U.S. Government Finances.”

Data is Illustrative – Goals, targets, timeframes, and costs are simulated and may not represent actual values.

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Appendix D: Key Factors Affecting the Strategic Outlook of the Department of the Treasury

A strategic outlook is an appraisal of significant outside forces, such as threats or opportunities, which influence the success an agency will have in achieving its mission and goals. Successful strategic planning efforts develop strategies that respond to a range of alternative futures and consider economic, political, technological, legal, and demographic factors.

The Department of the Treasury, in identifying its own strategic outlook, considered a broad range of possible alternative futures across multiple dimensions, for example: the challenge to a nation-state’s power and influence, the gap in the global standard of living, U.S. economic competitiveness, and U.S. public perception of threats to security and quality of life. These dimensions used in the planning process were based on the examination of information from Project Horizon, bureau environmental scans, and the National Intelligence Council 2020 Project.

Review of this information identified a need for the Treasury Department to effectively respond to a number of foreseeable challenges to successfully achieve its goals. The Department’s operations are influenced by numerous factors, many not under its direct control. It is important to acknowledge these factors when executing the strategic plan. The following were identified as the most critical factors potentially affecting the achievement of the Department’s goals:

Budget Environment

Rapid growth in government spending on major entitlement programs is anticipated, representing a critical economic challenge. If left unchecked, spending on these programs could significantly impair U.S. economic flexibility and erode competitiveness. Tight fiscal constraints will drive fiscally conservative budgets and will be increasingly important for deficit reduction. The Department of the Treasury will need to leverage greater efficiencies to better stretch existing funding. Optimizing resources across the Department and aligning the budget with priorities will become important tools.

Technology

The Department of the Treasury must keep pace with and adapt to technological advancements including those in the areas of electronic commerce and security. The Treasury Department must design information technology that is flexible and allows for rapid response to a constantly changing environment. Furthermore, the Department will need to work across its bureaus to leverage department-wide resources and knowledge.

The continuing rise of electronic commerce will require more efficient and secure processing of electronic collections and payments in an ever-increasing volume. Advances in duplication technology are becoming more affordable and widely used, thereby broadening the counterfeiting threat. Other new technologies, such as electronic cash, internet electronic payment systems, and internet banking increase the ability of individuals to rapidly transfer large sums of money, making it increasingly challenging to track transactions related to money laundering and other financial crimes.

Workforce

The Department of the Treasury is not immune to the management challenges which will occur government-wide over the next five years and beyond. These challenges include the increase in the number of employees eligible for retirement, closing skill gaps, and leadership development.

As more of the workforce ages and readies for retirement, the Treasury Department must increase its ability to compete effectively for personnel resources. People are no longer seeking lifetime employment but rather lifetime employability. The Department will need to respond to changes in workforce trends by implementing systemic changes that will attract and retain talent as an employer of choice.

The Department of the Treasury will need to make continued progress in executive development by building a cadre of leaders with the necessary skills to lead the Department effectively in the future. In addition, the Treasury Department will need to provide specialized training programs to enhance the skills of its existing workforce, and aggressively recruit workers into mission critical positions related to its core competencies. These constraints and challenges will require the Department’s management to use foresight in identifying and addressing workforce trends on the horizon.

Cooperation

Controlling the flow of funds to terrorists, enforcing international sanctions, and battling money laundering and other financial crimes will require cooperation at all levels of government and with global partners. The degree of commitment by major U.S. trading partners to strengthen regional and multilateral trading initiatives and further open domestic markets will have an impact on the achievement of the Treasury Department’s objectives for economic growth. The inability of different countries and international organizations to agree on a flexible approach to economic and regulatory cooperation and stability could delay progress in establishing new or existing arrangements and limit growth opportunities. Reaching widespread cooperation will be an enormous endeavor, but one which must be achieved to accomplish the Department’s economic and national security objectives.

Economy

Economic and financial crises are difficult to predict, and the quality of responses to them depends on the adoption of effective policies and the reaction of financial markets. Factors such as natural disasters, infectious disease, war, and civil unrest may adversely affect economic performance. For example: international terrorism and large scale natural disasters can potentially have a profound impact on the nation’s economy due to the amount of required insurance to cover losses. Federal programs are authorized to borrow from the Treasury Department, increasing taxpayer liability, potentially displacing private sector insurance companies, and decreasing the incentive for individuals to purchase private insurance. The Department will need to work closely with its federal partners to minimize any negative economic impact as a result of catastrophic events.

Financial Services

Changes in the financial service industry, such as the consolidation of institutions, variations in the personal savings rate, and the development of new products and services will continue to be a regulatory challenge. Another increasing challenge for the Treasury Department is integrating the millions of “un-banked” American households into the financial mainstream.

Changes in the market will influence the Department’s efforts to modernize, improve reliability, and maintain the integrity of the U.S. financial system, affecting economic performance and competitiveness.

Globalization

The increase in the scope of the financial system and the effects of a globalized economy will continue to present a challenge to the Treasury Department and the regulatory community to remain modern in its efforts to promote financial stability.

Legislation

Legislative mandates will continue to affect the Treasury Department’s work. Statutory limits on the total debt could potentially restrict the Department’s ability to borrow and finance the activities of the federal government. The Department of the Treasury’s desire to effect change, such as modernizing the nation’s entitlement programs and simplifying the tax code, can only happen through political consensus and effective legislation.

Society

Changes in American culture affect the way the Treasury Department operates. The Department must be constantly aware of the public’s perception of government. Changing demographics will put pressure on the Social Security and Medicare systems and will affect retirement security objectives.

National Security Threats

As the U.S. wages the war on terror, our national security is subject to various threats and challenges. The Department of the Treasury is actively involved in ensuring national security. The Department’s success is affected by the willingness of other nations and organizations to cooperate in actions against terrorism, proliferation of weapons of mass destruction, drug trafficking, international crime, and the underground economy. The Treasury Department functions in an environment where financial crime trends and patterns change quickly. The Department will need to stay ahead of financial criminals, requiring increased global cooperation with foreign governments and private sector partners, while minimizing the flow of illegal goods and services.

Immigration

Immigration plays a vital role in the dynamic U.S. economy. Historically, high levels of migration can be an indicator of a strong national economy due to better wages and jobs available to more people. Current trends suggest that economic forces will continue to attract migration to the United States for years to come. Immigration policy reform will be a significant factor in the American economy.

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Appendix E: Summary of Consultation Efforts

The Department of the Treasury, as an integral part of the strategic planning process, consulted with its federal government partners and stakeholders in preparing its strategic plan for fiscal years 2007-2012. Federal agency partners, congressional contacts, and independent sources were encouraged to submit comments on the plan which were reviewed and incorporated.

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Appendix F: Strategic Goal Linkage to Federal Partners

Strategic Goals:

Goal 1: Effectively Managed U.S. Government Finances

Goal 2: U.S. and World Economies Perform at Full Economic Potential

Goal 3: Prevented Terrorism and Promoted the Nation’s Security Through Strengthened International Financial Systems

Goal 4: Management and Organizational Excellence

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