    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Department of the Treasury]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 2004

    [[Page 765]]

                           DEPARTMENT OF THE TREASURY

                              DEPARTMENTAL OFFICES

                              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;
    not to exceed $3,500,000 for official travel expenses; not to exceed
    $3,000,000, to remain available until September 30, 2005 for information
    technology modernization requirements; not to exceed $150,000 for
    official reception and representation expenses; not to exceed $258,000
    for unforeseen emergencies of a confidential nature, to be allocated and
    expended under the direction of the Secretary of the Treasury and to be
    accounted for solely on his certificate, $166,875,000: Provided, That of
    these amounts $2,900,000 is for grants to State and local law
    enforcement groups to help fight money laundering: Provided further,
    That no less than $21,855,000 is for the Office of Foreign Assets
    Control: Provided further: That of these amounts, $3,393,000, to remain
    available until September 30, 2005, shall be for the Treasury-wide
    Financial Statement Audit 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0101-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Economic policies and programs..          56          56          59
    00.02   Financial policies and programs.          44          43          46
    00.03   Enforcement policies and
              programs......................          61
    00.04   Treasury-wide management
              policies and programs.........          32          32          32
    00.05   Treasury-wide fnancial statement
              audit.........................                       3           3
    00.06   Office of Foreign Assets Control          20          22          22
                                               ---------   ---------  ----------
    01.00   Subtotal, Direct programs.......         213         156         162
    09.11 Reimbursable program..............          13          20          20
                                               ---------   ---------  ----------
    09.99   Subtotal, reimbursable program..          13          20          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         226         176         182
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          71           4           9
    22.00 New budget authority (gross)......         162         181         187
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         237         185         196
    23.95 Total new obligations.............        -226        -176        -182
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7
    24.40 Unobligated balance carried
            forward, end of year............           4           9          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         149         161         167
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          14          20          20
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          13          20          20
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         162         181         187
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          64          82          51
    73.10 Total new obligations.............         226         176         182
    73.20 Total outlays (gross).............        -200        -208        -187
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
    74.40 Obligated balance, end of year....          82          51          46
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         147         161         166
    86.93 Outlays from discretionary
            balances........................          53          47          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         200         208         187
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -14         -20         -20
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         149         161         167
    90.00 Outlays...........................         188         188         167
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           1           1
    92.02 Total investments, end of year:
            Federal securities: Par value...           1
    ---------------------------------------------------------------------------

        Departmental Offices' function in the Department of the Treasury is
    to provide basic support to the Secretary of the Treasury, who is the
    chief operating executive of the Department. The Secretary of the
    Treasury maintains the primary role in formulating and managing the
    domestic and international tax and financial policies of the Federal
    Government. The Secretary's responsibilities funded by the Salaries and
    Expenses appropriation include: recommending and implementing United
    States domestic and international economic and tax policy; fiscal
    policy; governing the fiscal operations of the Government; maintaining
    foreign assets control; managing the public debt; managing development
    financial policy; representing the United States on international
    monetary, trade and investment issues; overseeing Department of the
    Treasury overseas operations; and directing the administrative
    operations of the Department of the Treasury.

        In support of the Secretary, the Salaries and Expenses appropriation
    provides resources for policy formulation and implementation in the
    areas of domestic and international financial, investment, tax,
    economic, trade and financial operations and general fiscal policy. This
    appropriation also provides resources for administrative support to the
    Secretary and policy components, and coordination of Departmental
    administrative policies in financial and personnel management,
    procurement operations, and automated information systems and
    telecommunications.

        Economic Policies and Programs.--The function of the Economic
    Policies and Programs Activity is to advise the Secretary and Deputy
    Secretary in economic areas such as: (1) monitors macro- and micro-
    economic developments and assists in determining appropriate economic
    policies; develops an overall appraisal of the current state of, and
    outlook for the economy; provides written and oral briefing materials
    for the Secretary, other officials, and outsiders; participates in
    interagency groups working on economic matters to develop and maintain a
    coordinated and consistent government-wide economic program; and (2) the
    formulation and execution of U.S. international economic and financial
    policies regarding a wide

    [[Page 766]]

    range of international development and analysis functions involving:
    trade and investment, energy policy, monetary affairs, development
    financing, and general economic research into international financial
    issues. The Office of International Affairs works closely with other
    Federal agencies and international financial institutions, and
    coordinates international financial and macro-economic policy with the
    National Economic Council (Annual Economic Summit), the National
    Security Council, the Council of Economic Advisors, the Office of
    Management and Budget (foreign country risk review), the United States
    Trade Representative (financial services, investment, etc.), and all
    components of the Executive Office of the President. Under Presidential
    Executive order, the Office of International Affairs participates with
    the Department of State in the collection and analysis of economic
    information on foreign countries. In the areas of international monetary
    and foreign exchange policy, the Office of International Affairs shares
    responsibility with the Federal Reserve (principally, the Board of
    Governors, but also the Federal Reserve Bank of New York) in working
    closely with the International Monetary Fund. In the area of
    international development, the Office of International Affairs
    formulates resource needs, notably U.S. contributions, policies and
    programs for various Multilateral Development Banks. With the Export-
    Import Bank, the Office of International Affairs has responsibility for
    export credit finance. This activity includes the Office of the
    Assistant Secretary (Economic Policy), the immediate offices of the
    Under Secretary (International Affairs), the Assistant Secretary
    (International Affairs) and the Office of International Affairs.

        Financial Policies and Programs.--The function of the Financial
    Policies and Programs Activity is to advise the Secretary and Deputy
    Secretary in areas of domestic finance, banking, fiscal policy and
    operations, and other related financial matters, including development
    of policies and guidance in the areas of financial institutions, federal
    debt finance, financial regulation, and capital markets. Specifically,
    this activity ensures that the management of the Federal government's
    cash minimizes risk and strikes a balance between cash needs and short-
    term investments. This activity provides decision makers and
    stakeholders with: (1) timely, concise and thorough policies, guidance
    and analysis in the areas of: financial institutions, financial
    regulation, the equitable and efficient delivery of financial services,
    the availability of credit, financial crimes, federal debt finance,
    capital markets, the privatization of government assets, and any other
    issues related to domestic finance and financial services; and (2)
    recommendations regarding the development and implementation of tax
    policies and programs; official estimates of all Government receipts for
    the President's Budget, fiscal policy decisions, and cash management
    decisions; policy criteria reflected in regulations and rulings to
    implement the Internal Revenue Code; negotiation of tax treaties for the
    United States; and economic and legal policy analysis for domestic and
    international tax policy decisions. This activity includes the immediate
    office of the Under Secretary (Domestic Finance), the Assistant
    Secretary (Financial Institutions), the Assistant Secretary (Financial
    Markets), the Fiscal Assistant Secretary, and the Deputy Assistant
    Secretary for Community Development Policy and the Assistant Secretary
    (Tax Policy).

        Treasury-wide Management Policies and Programs.--The Treasury-wide
    Management Policies and Programs Activity provides policy advice on
    matters involving the internal management of the Department and its
    bureaus; coinage and currency production and security; the sale and
    retention of savings bonds; financial management, information systems,
    security, property management, human resources, procurement and
    contracting, strategic planning; and customer service. This activity is
    responsible for implementing the functions of the Chief Financial
    Officer (CFO), the Government Performance Results Act (GPRA), and the
    Information Technology Management Reform Act which includes efficient
    and effective use of the Treasury's resources. This activity includes
    the Office of the Assistant Secretary (Management) and Chief Financial
    Officer and the Treasurer of the United States.

        Treasury-wide Financial Statement Audit.--This activity has
    responsibility for contracting and funding all financial statement audit
    work that will be done by the OIG. The OIG would streamline the process,
    provide costs savings and accountability for getting these audits done,
    and ensure timeliness and consistency of financial statement audits in
    the Department. The audits would include those of the Financial
    Management Service, the Bureau of Public Debt, the Federal Financing
    Board, the Alcohol and Tobacco Tax and Trade Bureau, the Community
    Development Financial Institutions, and the Departmental Offices.

        Office of Foreign Assets Control.--Manages and enforces economic
    sanctions and embargo programs against targeted foreign governments and
    groups that pose threats to the national security, foreign policy, or
    economy of the United States. These include sanctions programs
    administered under the International Emergency Economic Powers Act, the
    Trading with the Enemy Act, the United Nations Participation Act, the
    Anti-Terrorism and Effective Death Penalty Act, the Foreign Narcotics
    Kingpin Designation Act and other related Executive Orders and statutes.

                             PERFORMANCE MEASURES

                                                           2004 est.
    Economic conditions in developing countries
     (overall percent change in Gross Domestic Product
     from prior calendar year)........................          GDP Growth
    Economic conditions in transitional economies
     (overall percent change in Gross Domestic Product
     from prior calendar year)........................          GDP Growth
    Announce borrowing policies and borrowing
     requirements to financial market participants in
     a timely manner..................................                100%
    Number of open material weaknesses (significant
     management problems identified by GAO, the IGs,
     and/or the bureaus)..............................                  5%
    Percent of new IT capital investments tracked that
     are within costs, on schedule, and meeting
     performance targets..............................                100%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0101-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          87          86          90
    12.1    Civilian personnel benefits.....          20          15          17
    21.0    Travel and transportation of
              persons.......................           4           3           3
    23.1    Rental payments to GSA..........           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          10           9           9
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................          81          32          32
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................           5           5           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............         213         156         162
    99.0  Reimbursable obligations..........          13          20          20
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         226         176         182
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0101-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         825         865         860
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          92         112         112
    ---------------------------------------------------------------------------

      Department-Wide Systems and Capital Investments Programs (including
                               transfer of funds)

        For development and acquisition of automatic data processing
    equipment, software, and services for the Department of the Treasury,
    $36,928,000, to remain available until September 30, 2006: Provided,

    [[Page 767]]

    That these funds shall be transferred to accounts and in amounts as
    necessary to satisfy the requirements of the Department's offices,
    bureaus, and other organizations: Provided further, That this transfer
    authority shall be in addition to any other transfer authority provided
    in this Act.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0115-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          24          37          37
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          24          37          37
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10          27          27
    22.00 New budget authority (gross)......          37          37          37
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          52          64          64
    23.95 Total new obligations.............         -24         -37         -37
    24.40 Unobligated balance carried
            forward, end of year............          27          27          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          44          37          37
    41.00   Transferred to other accounts...          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          37          37          37
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          24          21          15
    73.10 Total new obligations.............          24          37          37
    73.20 Total outlays (gross).............         -23         -43         -42
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.40 Obligated balance, end of year....          21          15          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2          16          16
    86.93 Outlays from discretionary
            balances........................          21          27          26
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          23          43          42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          37          37          37
    90.00 Outlays...........................          23          43          42
    ---------------------------------------------------------------------------

        The 1997 Treasury Postal Appropriations Act established this account
    which is authorized to be used by or on behalf of Treasury bureaus, at
    the Secretary's discretion, to modernize business processes and increase
    efficiency through technology investments.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0115-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    23.1  Rental payments to GSA............           1           1           1
    25.2  Other services....................          20          34          34
    26.0  Supplies and materials............           1
    31.0  Equipment.........................           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          24          37          37
    ---------------------------------------------------------------------------

                           Office of Inspector General

                              salaries and expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0106-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          11          11
    09.01 Reimbursable program..............           1           1
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          12          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1           1
    22.00 New budget authority (gross)......          12          12
    22.21 Unobligated balance transferred to
            other accounts..................                                  -1
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13          13
    23.95 Total new obligations.............         -12         -12
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          11          11
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          12          12
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           2
    73.10 Total new obligations.............          12          12
    73.20 Total outlays (gross).............         -12         -11          -2
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11           9
    86.93 Outlays from discretionary
            balances........................           1           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          11           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11          11
    90.00 Outlays...........................          11          10           2
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           1
    99.01 Outlays...........................           1           1
    ---------------------------------------------------------------------------

        To maximize efficiencies and effectiveness, legislative language is
    being proposed which will merge the Treasury Inspector General and the
    Treasury Inspector General for Tax Administration into a new Inspector
    General office, called the Inspector General for Treasury. The new
    organization will have all of the same powers and authorities as its
    predecessors have under current law.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0106-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           6
    12.1    Civilian personnel benefits.....           1           1
    21.0    Travel and transportation of
              persons.......................           1           1
    23.1    Rental payments to GSA..........           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1
    25.2    Other services..................           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          11          11
    99.0  Reimbursable obligations..........           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          12          12
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0106-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          87          87
    ---------------------------------------------------------------------------

    [[Page 768]]

                         Inspector General for Treasury

                              salaries and expenses

        For necessary expenses of the Inspector General for the Department
    of the Treasury in carrying out the provisions of the Inspector General
    Act of 1978, as amended, including purchase (not to exceed 150 for
    replacement only for police-type use) and hire of passenger motor
    vehicles (31 U.S.C. Sec. 1343(b)); services authorized by 5 U.S.C.
    Sec. 3109, at such rates as may be determined by the Inspector General;
    not to exceed $7,000,000 for official travel expenses; and not to exceed
    $600,000 for unforeseen emergencies of a confidential nature, to be
    allocated and expanded under the direction of the Inspector General for
    the Department of the Treasury, $134,949,000: Provided, That unobligated
    balances available under the headings, ``Office of the Inspector
    General'' and ``Inspector General for Tax Administration,'' shall be
    transferred to this heading.

        Note.--A regular 2003 appropriation for activities financed by this
    account had not been enacted at the time the budget was prepared;
    therefore, this account is operating under a continuing resolution (P.L.
    107-229, as amended). The amounts included for 2003 in this budget
    reflect the Administration's 2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0119-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Audit.............................          49          50          56
    00.02 Investigations....................          76          74          79
    09.01 Reimbursable program..............           4           2           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         129         126         138
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         130         126         138
    22.22 Unobligated balance transferred
            from other accounts.............                                   1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         130         126         139
    23.95 Total new obligations.............        -129        -126        -138
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         126         124         135
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           4           2           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         130         126         138
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15          11          12
    73.10 Total new obligations.............         129         126         138
    73.20 Total outlays (gross).............        -133        -126        -138
    74.40 Obligated balance, end of year....          11          12          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         120         114         125
    86.93 Outlays from discretionary
            balances........................          13          12          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         133         126         138
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -4          -2          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         126         124         135
    90.00 Outlays...........................         129         124         135
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           7           8           9
    99.01 Outlays...........................           7           8           9
    ---------------------------------------------------------------------------

        To maximize efficiencies and effectiveness, legislative language is
    being proposed which will merge the Treasury Inspector General and the
    Treasury Inspector General for Tax Administration into a new Inspector
    General office, called the Inspector General for Treasury. The new
    organization will have all of the same powers and authorities as its
    predecessors have under current law.

        The Inspector General for Treasury conducts and supervises audits,
    investigations, and evaluations to assess the operations and programs of
    the bureaus and offices of the Department of the Treasury. It (1)
    promotes the economy, efficiency, and effectiveness of Departmental
    programs and operations by preventing fraud, waste, and abuse in those
    programs and operations, (2) keeps the Secretary and the Congress fully
    and currently informed of these issues and the progress made toward
    resolving them, (3) reviews existing and proposed legislation and
    regulations relating to the programs and operations of the Department,
    and makes recommendations concerning the impact of such legislation and
    regulations on the economy and efficiency in the administration of
    programs and operations of the Department of the Treasury. The audit
    function provides program audit, contract audit, information technology
    audit, and financial statement audit services. Program audits review and
    audit all facets of agency programs and operations and related entities.
    Contract audits provide professional advice to agency contracting
    officials on accounting and financial matters relative to negotiation,
    award, administration, repricing, and settlement of contracts.
    Information technology audits review all aspects of the acquisition,
    implementation, and security of electronic systems. Financial statement
    audits assess whether financial statements fairly present the agency's
    financial condition and results of operations, the adequacy of
    accounting controls, and compliance with laws and regulations. These
    audits contribute significantly to improved financial management by
    helping Treasury managers identify improvements needed in their
    accounting and internal control systems. The evaluations function
    reviews program performance and issues critical to the mission of the
    Department of the Treasury, including assessing the Department's
    implementation of the Government Performance and Results Act. The
    investigative function provides for the detection, investigation of and
    protection against improper and illegal activities involving programs,
    personnel, and operations of Department of the Treasury including
    external attempts to corrupt or threaten their employees, systems and
    facilities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0119-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          68          68          75
    11.5      Other personnel compensation..           8           8           8
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          76          76          83
    12.1    Civilian personnel benefits.....          20          19          21
    21.0    Travel and transportation of
              persons.......................           5           5           5
    23.1    Rental payments to GSA..........           8           9          10
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    25.1    Advisory and assistance services           4           4           4
    25.2    Other services..................           1           2           2
    25.3    Other purchases of goods and
              services from Government
              accounts......................                       1           2
    25.4    Operation and maintenance of
              facilities....................           1
    25.7    Operation and maintenance of
              equipment.....................           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           6           5           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............         125         124         135
    99.0  Reimbursable obligations..........           4           2           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         129         126         138
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0119-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         928         947         987
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          15          15          15
    ---------------------------------------------------------------------------

    [[Page 769]]

               Treasury Building and Annex Repair and Restoration

        For the repair, alteration, and improvement of the Treasury Building
    and Annex, $25,000,000, to remain available until September 30, 2006.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0108-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Repair and improvement of Main
            Treasury........................          27          33          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          27          33          25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           8           8
    22.00 New budget authority (gross)......          29          33          25
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          35          41          33
    23.95 Total new obligations.............         -27         -33         -25
    24.40 Unobligated balance carried
            forward, end of year............           8           8           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          29          33          25
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          44          27          19
    73.10 Total new obligations.............          27          33          25
    73.20 Total outlays (gross).............         -42         -41         -34
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....          27          19          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      15          11
    86.93 Outlays from discretionary
            balances........................          42          26          23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          42          41          34
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          29          33          25
    90.00 Outlays...........................          42          41          34
    ---------------------------------------------------------------------------

        This appropriation funds repairs and selected improvements to
    maintain the Main Treasury and Annex buildings.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0108-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    23.1  Rental payments to GSA............           4           5           5
    25.2  Other services....................           4           5           3
    26.0  Supplies and materials............           1           1
    31.0  Equipment.........................           1           1
    32.0  Land and structures...............          16          20          16
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          27          33          25
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0108-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          10          10          10
    ---------------------------------------------------------------------------

                      Expanded Access to Financial Services

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0121-0-1-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Expanded access to financial
            services........................           9           2           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           9           2           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10           1           1
    22.00 New budget authority (gross)......                       2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          10           3           1
    23.95 Total new obligations.............          -9          -2          -1
    24.40 Unobligated balance carried
            forward, end of year............           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                       2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       9           2
    73.10 Total new obligations.............           9           2           1
    73.20 Total outlays (gross).............                      -9          -3
    74.40 Obligated balance, end of year....           9           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1
    86.93 Outlays from discretionary
            balances........................                       8           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       9           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       2
    90.00 Outlays...........................                       9           3
    ---------------------------------------------------------------------------

        The Budget does not seek additional funding for Expanded Access to
    Financial Services, though the program will continue to operate on
    unobligated balances of budget authority. Appropriated amounts from 2002
    remain unavailable, however, as the program lacks congressional
    authorization.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0121-0-1-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           1           3           2
    ---------------------------------------------------------------------------

                           Terrorism Insurance Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0123-0-1-376      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative Expenses...........                       8           9
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                       8           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                       8           9
    23.95 Total new obligations.............                      -8          -9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation, P.L. 107-297.....                       8           9
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                       8           9
    73.20 Total outlays (gross).............                      -7          -8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       7           7
    86.98 Outlays from mandatory balances...                                   1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       7           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       8           9
    90.00 Outlays...........................                       7           8
    ---------------------------------------------------------------------------

        On November 26, 2002, President Bush signed into law the Terrorism
    Risk Insurance Act of 2002 (P.L. 107-297). The Act establishes and
    provides mandatory funding for a

    [[Page 770]]

    temporary Terrorism Insurance Program to be administered by the
    Department of the Treasury. Under the program, the Federal Government is
    responsible for paying 90 percent of the insured losses arising from
    acts of terrorism above the applicable insurer deductible and below the
    $100 billion annual cap.

        The budget includes estimates of the general administrative costs of
    the program. Given the uncertainty surrounding the risk of future
    terrorist attacks, the budget does not include estimates of the timing
    or magnitude of potential insurance claims under the program, which is
    scheduled to sunset on December 31, 2005. Any such claims would be paid
    from permanent, indefinite authority and would not require subsequent
    appropriations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0123-0-1-376      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                       1           1
    25.1    Advisory and assistance services                       7           7
                                               ---------   ---------  ----------
    99.0      Direct obligations............                       8           8
    99.5  Below reporting threshold.........                                   1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                       8           9
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0123-0-1-376      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                       5           9
    ---------------------------------------------------------------------------

                            Treasury Forfeiture Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5697-0-2-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
          Receipts:

    02.00   Forfeited cash and proceeds from
              the sale of forfeited property         172         213         213
    02.00   Forfeited cash and proceeds from
              the sale of forfeited property                                -213
          Offsetting receipts (intragovernmental):

    02.40   Earnings on investments.........           6           8           8
    02.40   Earnings on investments.........                                  -8
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         178         221
        Appropriations:
          Appropriations:

    05.00   Department of the Treasury
              forfeiture fund...............        -178        -221        -221
    05.00   Department of the Treasury
              forfeiture fund...............                                 221
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -178        -221
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5697-0-2-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Asset forfeiture fund.............         229         238         221
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         229         238         221
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          90          59          52
    22.00 New budget authority (gross)......         178         221         221
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          20          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         288         290         273
    23.95 Total new obligations.............        -229        -238        -221
    24.40 Unobligated balance carried
            forward, end of year............          59          52          52
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....         178         221         221
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         190         157         170
    73.10 Total new obligations.............         229         238         221
    73.20 Total outlays (gross).............        -242        -215        -221
    73.45 Recoveries of prior year
            obligations.....................         -20         -10
    74.40 Obligated balance, end of year....         157         170         170
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         178         182         199
    86.98 Outlays from mandatory balances...          64          33          22
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         242         215         221
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         178         221         221
    90.00 Outlays...........................         242         215         221
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         175         132         280
    92.02 Total investments, end of year:
            Federal securities: Par value...         132         280         280
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................         178         221         221
      Outlays...........................         242         215         221
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                -221
      Outlays...........................                                -221
                                        ------------------------------------
    Total:
      Budget Authority..................         178         221
      Outlays...........................         242         215
                                        ====================================

        Public Law 102-393 authorized the establishment of the Treasury
    Forfeiture Fund. It is available to pay or reimburse certain costs and
    expenses related to seizures and forfeitures that occur pursuant to the
    Treasury Department's law enforcement activities. The Coast Guard also
    participates in the program. The Treasury Forfeiture Fund is being
    transferred to the Department of Justice Asset Forfeiture Fund in 2004.
    Proposed legislation to effect this transfer will follow.

        The following performance measurements are provided in compliance
    with the Government Performance and Results Act of 1993 (GPRA).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5697-0-2-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         151         163         146
    41.0  Grants, subsidies, and
            contributions...................          78          75          75
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         229         238         221
    ---------------------------------------------------------------------------

                            Treasury Forfeiture Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5697-4-2-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Asset forfeiture fund.............                                -221
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                -221
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                -221

    [[Page 771]]

    22.21 Unobligated balance transferred to
            other accounts..................                                 -52
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                -273
    23.95 Total new obligations.............                                 221
    24.40 Unobligated balance carried
            forward, end of year............                                 -52
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....                                -221
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                -221
    73.20 Total outlays (gross).............                                 221
    73.31 Obligated balance transferred to
            other accounts..................                                -170
    74.40 Obligated balance, end of year....                                -170
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                -199
    86.98 Outlays from mandatory balances...                                 -22
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                -221
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -221
    90.00 Outlays...........................                                -221
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5697-4-2-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                -146
    41.0  Grants, subsidies, and
            contributions...................                                 -75
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                -221
    ---------------------------------------------------------------------------

                       Presidential Election Campaign Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5081-0-2-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Presidential election campaign
            fund............................          67          67          67
        Appropriations:
    05.00 Presidential election campaign
            fund............................         -67         -67         -67
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5081-0-2-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Matching Funds in Primaries.......                                  66
    00.02 Nominating conventions for parties                      29           1
    00.03 General Elections.................                                 151
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                      29         218
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          72         140         178
    22.00 New budget authority (gross)......          67          67          67
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         139         207         245
    23.95 Total new obligations.............                     -29        -218
    24.40 Unobligated balance carried
            forward, end of year............         140         178          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....          67          67          67
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                      29         218
    73.20 Total outlays (gross).............                     -29        -218
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                  67
    86.98 Outlays from mandatory balances...                      29         151
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      29         218
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          67          67          67
    90.00 Outlays...........................                      29         218
    ---------------------------------------------------------------------------

        Matching funds in primaries.--Upon certification by the Federal
    Election Commission, every candidate eligible to receive payments is
    entitled to receive $250 in Federal matching funds for each eligible
    $250 private contribution received after the beginning of the calendar
    year immediately preceding the election year through the end of the
    calendar year of the election.

        Nominating conventions of parties.--Upon certification by the
    Commission, payments may be made to the national committee of a major
    party or a minor party which elects to receive its entitlement. The
    total of such payments will be limited to the amount in the account at
    the time of payment. The national committee of each party may receive
    payments beginning on July 1 of the year immediately preceding the
    calendar year in which a presidential nominating convention of the
    political party is held. By statute, the two major parties receive $4
    million each, plus a cost-of-living increase. In 2000, both parties
    received $13.5 million for their nominating conventions.

        Candidates for general elections.--By statute, the eligible
    candidates of each major party in a presidential election are entitled
    to equal payments in an amount which, in the aggregate, shall not exceed
    $20 million each, plus a cost-of-living increase. In 2000, this amounted
    to $67.6 million for each candidate.

        Also, provision is made for new parties, minor parties and
    candidates, who may receive in excess of 5 percent of the popular vote
    and therefore be entitled to reimbursement of qualified campaign
    expenditures.

                             Sallie Mae Assessments

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5407-0-2-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Sallie Mae assessments............                       1           1
        Appropriations:
    05.00 Sallie Mae assessments............                      -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5407-0-2-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 99.5)...................                       1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                   1
    22.00 New budget authority (gross)......                       1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       1           2
    23.95 Total new obligations.............                      -1          -1
    24.40 Unobligated balance carried
            forward, end of year............                       1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....                       1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                       1           1
    73.20 Total outlays (gross).............                      -1          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            balances........................                                   1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       1           2
    ----------------------------------------------------------------------------

    [[Page 772]]

        Net budget authority and outlays:
    89.00 Budget authority..................                       1           1
    90.00 Outlays...........................                       1           2
    ---------------------------------------------------------------------------

        The Secretary of the Treasury is authorized by the Higher Education
    Act of 1965, as amended to collect from the Student Loan Marketing
    Association an annual assessment of up to $800,000, adjusted by the
    Consumer Price Index, to cover the expenses relating to providing
    financial oversight of the Association.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-5407-0-2-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           3           4           4
    ---------------------------------------------------------------------------

    Public enterprise funds:

                           Exchange Stabilization Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4444-0-3-155      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Direct Program Activity...........         211         215         226
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         211         215         226
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance carried forward, start of
              year:

    21.40   Unobligated balance carried
              forward, start of year
              (Special drawing rights)......      22,829      23,138      23,444
    21.40   Unobligated balance carried
              forward, start of year (Fund
              balance)......................
    21.40   Unobligated balance carried
              forward, start of year (US
              Securities)...................
    22.00 New budget authority (gross)......         520         521         547
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,349      23,659      23,991
    23.95 Total new obligations.............        -211        -215        -226
          Unobligated balance carried forward, end of
              year:

    24.40   Unobligated balance carried
              forward, end of year..........      23,138      23,444      23,765
    24.40   Unobligated balance carried
              forward, end of year (Fund
              Balance)......................
    24.40   Unobligated balance carried
              forward, end of year (US
              Securities)...................
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         520         521         547
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      13,924      14,135      14,350
    73.10 Total new obligations.............         211         215         226
    73.20 Total outlays (gross).............
    74.40 Obligated balance, end of year....      14,135      14,350      14,576
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities        -184        -184        -193
    88.40     Interest on foreign
                investments.................        -336        -337        -354
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -520        -521        -547
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -520        -521        -547
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
          Total investments, start of year: Federal
              securities: Par value:

    92.01   Total investments, start of
              year: Federal securities: Par
              value.........................      10,014       9,717      10,202
          Total investments, end of year: Federal
              securities: Par value:

    92.02   Total investments, end of year:
              Federal securities: Par value.       9,717      10,202      10,713
    ---------------------------------------------------------------------------

        The Secretary of the Treasury is authorized to deal in gold and
    foreign exchange and other instruments of credit and securities as
    deemed necessary, consistent with U.S. obligations in the International
    Monetary Fund (IMF), regarding orderly exchange arrangements and a
    stable system of exchange rates. An Exchange Stabilization Fund, with a
    capital of $200 million, is authorized by law for this purpose (31
    U.S.C. 5302). All earnings and interest accruing to this fund are
    available for the purposes thereof. Transactions in special drawing
    rights (SDR's) and U.S. holdings of SDR's are administered by the fund.
    U.S. drawings from the IMF, if any, are also advanced to the fund.

        The principal sources of the fund's income have been profits on
    foreign exchange transactions and earnings on investments held by the
    fund, including interest earned on fund holdings of U.S. Government
    securities.

        The amounts reflected in the 2002 and 2003 estimates entail only
    projected net interest earnings on Exchange Stabilization Fund (ESF)
    assets. The estimates are subject to considerable variance, depending on
    changes in the amount and composition of assets and the interest rates
    applied to investments. In addition, exchange rate fluctuations can
    cause the dollar value of income received on foreign currency and SDR
    investments to fluctuate. Moreover, estimates make no attempt to
    forecast gains or losses reflecting SDR valuation or foreign currency
    valuation. As required by Public Law 95-612, the fund is not used to
    meet the administrative expenses.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4444-0-3-155    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         342          1,504         1,579          1,658
    0102  Expense...........................                       -312          -328           -344
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         342          1,192         1,251          1,314
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4444-0-3-155    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Investments in US securities:
    1102      Treasury securities, par......      10,014          9,717        10,202         10,713
    1106      Receivables, net..............           2
          Non-Federal assets:

    1201    Foreign Currency Investments....      15,294         16,046        16,848         17,691
    1206    Receivables, net................          65            118           120            126
    1801  Other Federal assets: Cash and
            other monetary assets...........      10,979         11,710        11,800         11,900
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      36,354         37,591        38,970         40,430
        LIABILITIES:
    2207  Non-Federal liabilities: Other....       8,660          8,705         9,140          9,597
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,660          8,705         9,140          9,597
        NET POSITION:
    3100  Appropriated capital..............         200            200           200            200
    3300  Cumulative results of operations..      27,494         28,686        29,630         30,633
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      27,694         28,886        29,830         30,833
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      36,354         37,591        38,970         40,430
    -----------------------------------------------------------------------------------------------

    [[Page 773]]

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4501-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.10 Working capital fund..............         312         279         283
    09.11 Administrative overhead...........          10          10          11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         322         289         294
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          30          27          27
    22.00 New budget authority (gross)......         278         289         294
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          41
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         349         316         321
    23.95 Total new obligations.............        -322        -289        -294
    24.40 Unobligated balance carried
            forward, end of year............          27          27          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         308         289         294
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -30
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         278         289         294
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         159         190         190
    73.10 Total new obligations.............         322         289         294
    73.20 Total outlays (gross).............        -278        -289        -294
    73.45 Recoveries of prior year
            obligations.....................         -41
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          30
    74.40 Obligated balance, end of year....         190         190         190
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         278         289         294
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -308        -289        -294
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -28
    ---------------------------------------------------------------------------

        Central services in the Department of the Treasury working capital
    fund include: telecommunications, printing, reproduction, computer
    support/usage, personnel/payroll, automated financial management
    systems, training, centralized short-term management assistance,
    procurement information, information technology services, public
    education, an environmental health and safety program, and printing
    procurement services. These services are provided on a reimbursable
    basis at rates which will recover the fund's operating expenses,
    including accrual of annual leave and depreciation of equipment.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4501-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          22          26          27
    12.1  Civilian personnel benefits.......           5           6           6
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           3           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           5          11          11
    25.1  Advisory and assistance services..          16          12          12
    25.2  Other services....................          37         162         167
    25.3  Other purchases of goods and
            services from Government
            accounts........................         205          52          52
    26.0  Supplies and materials............           1           2           2
    31.0  Equipment.........................          27          16          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         322         289         294
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-4501-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         283         327         322
    ---------------------------------------------------------------------------

                             Treasury Franchise Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4560-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............         333         351         388
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         333         351         388
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         104         139         139
    22.00 New budget authority (gross)......         354         347         384
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          15           4           4
    22.21 Unobligated balance transferred to
            other accounts..................          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         472         490         527
    23.95 Total new obligations.............        -333        -351        -388
    24.40 Unobligated balance carried
            forward, end of year............         139         139         139
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         323         353         390
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          31          -6          -6
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         354         347         384
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -49         -74         -63
    73.10 Total new obligations.............         333         351         388
    73.20 Total outlays (gross).............        -312        -342        -379
    73.45 Recoveries of prior year
            obligations.....................         -15          -4          -4
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -31           6           6
    74.40 Obligated balance, end of year....         -74         -63         -52
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         162         302         334
    86.93 Outlays from discretionary
            balances........................         150          40          45
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         312         342         379
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -322        -353        -390
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -323        -353        -390
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -31           6           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -11         -11         -11
    ---------------------------------------------------------------------------

        Department of the Treasury was chosen as a pilot Franchise Fund
    under P.L. 103-356, the Government Management and Reform Act of 1994.
    Begun in 1997, financial and administrative services included in the
    Franchise Fund (Fund) are financed on a fee-for-service basis.
    Treasury's Fund is a revolving fund used to supply financial and
    administrative services on the basis of services supplied. For 2004,
    service activities are expected to have spending authority of $384
    million and employ 543 people.

    [[Page 774]]

        Activities included in the Fund are financial training, accounting
    cross-servicing, and various administrative support services. The Fund
    concept is intended to increase competition for government and financial
    administrative services, resulting in lower costs and higher quality.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4560-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          27          30          30
    12.1  Civilian personnel benefits.......           7           9           9
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           3           3           3
    24.0  Printing and reproduction.........           3           4           4
    25.2  Other services....................         285         297         334
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           6           6           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         333         351         388
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-4560-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         473         530         543
    ---------------------------------------------------------------------------

    Credit accounts:

                Air Transportation Stabilization Program Account

        For necessary expenses to administer the Air Transportation
    Stabilization Board, established by section 102 of the Air
    Transportation Safety and System Stabilization Act (Public Law 107-42),
    $2,538,000, to remain until expended.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0122-0-1-402      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Loan guarantee subsidy............         172         386
    00.07 Reestimates of loan guarantee
            subsidy.........................                     113
    00.08 Interest on reestimates of loan
            guarantee subsidy...............                       1
    00.09 Administrative expenses...........           7           6           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         179         506           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       2           2
    22.00 New budget authority (gross)......         172         506           3
    22.22 Unobligated balance transferred
            from other accounts.............           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         181         508           5
    23.95 Total new obligations.............        -179        -506          -3
    24.40 Unobligated balance carried
            forward, end of year............           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                       6           3
          Mandatory:

    60.00   Appropriation...................         172         500
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         172         506           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       4           1
    73.10 Total new obligations.............         179         506           3
    73.20 Total outlays (gross).............        -175        -509          -5
    74.40 Obligated balance, end of year....           4           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       5           3
    86.93 Outlays from discretionary
            balances........................           3           4           2
    86.97 Outlays from new mandatory
            authority.......................         172         500
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         175         509           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         172         506           3
    90.00 Outlays...........................         175         509           5
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0122-0-1-402      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Airline loan guarantees...........         429       1,433
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......         429       1,433
        Guaranteed loan subsidy (in percent):
    232001Airline loan guarantees...........       40.11       26.94
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       40.11       26.94
        Guaranteed loan subsidy budget authority:
    233001Airline loan guarantees...........         172         386
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....         172         386
        Guaranteed loan subsidy outlays:
    234001Airline loan guarantees...........         172         386
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............         172         386
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Airline loan guarantees...........                     114
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................                     114
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Airline loan guarantees...........                     114
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................                     114
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           9           6
    358001Outlays from balances.............           3           4
    359001Outlays from new authority........                       6
    ---------------------------------------------------------------------------

        On September 22, 2001, President Bush signed into law the Air
    Transportation Safety and System Stabilization Act, P.L. 107-42. The Act
    establishes the Air Transportation Stabilization Board. The Board may
    issue up to $10 billion in loan guarantees.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0122-0-1-402      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           1           1           1
    25.2    Other services..................           6           4           1
    41.0    Grants, subsidies, and
              contributions.................         172         500
                                               ---------   ---------  ----------
    99.0      Direct obligations............         179         505           2
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         179         506           3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0122-0-1-402      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           7          12           6
    ---------------------------------------------------------------------------

       Air Transportation Stabilization Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4286-0-3-402      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Claim payments....................                     495         105
                                               ---------   ---------  ----------

    [[Page 775]]

    10.00   Total new obligations...........                     495         105
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                     197         231
    22.00 New financing authority (gross)...         197         529          50
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         197         726         281
    23.95 Total new obligations.............                    -495        -105
    24.40 Unobligated balance carried
            forward, end of year............         197         231         176
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                      10
          Offsetting collections (cash):

    69.00   Offsetting collections (cash)...         172         500
    69.00   Offsetting collections (cash)...          25          10           9
    69.00   Offsetting collections (cash)...                                  33
    69.00   Offsetting collections (cash)...                       9           8
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         197         519          50
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         197         529          50
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                     495         105
    73.20 Total financing disbursements
            (gross).........................                    -495        -105
    87.00 Total financing disbursements
            (gross).........................                     495         105
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -172        -500
    88.25     Interest on uninvested funds..                      -9          -8
    88.40     Non-Federal sources...........         -25         -10         -42
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -197        -519         -50
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      10
    90.00 Financing disbursements...........        -197         -24          55
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4286-0-3-402      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      10,000
    2121  Limitation available from carry-
            forward.........................                   9,571       8,138
    2143  Uncommitted limitation carried
            forward.........................      -9,571      -8,138      -8,138
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         429       1,433
    2199  Guaranteed amount of guaranteed
            loan commitments................         380       1,361
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                     429       1,367
    2231  Disbursements of new guaranteed
            loans...........................         429       1,433
    2251  Repayments and prepayments........                                -165
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................                    -495        -105
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         429       1,367       1,097
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         380       1,230         987
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......                                 495
    2331    Disbursements for guaranteed
              loan claims...................                     495         105
    2351    Repayments of loans receivable..                                 -33
    2361    Write-offs of loans receivable..                                -462
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......                     495         105
    ---------------------------------------------------------------------------

        Numbers shown for 2003 include estimates for loan guarantees that
    have received either conditional or final approval. This presentation
    should not be construed as prejudging the outcome of the Air
    Transportation Stabilization Board's deliberations. The Board does not
    anticipate making any new loan guarantees in 2004.

        As required by the Federal Credit Reform Act of 1990, as amended,
    this non-budgetary account records all cash flows to and from the
    Government resulting from loan guarantees obligated in 1992 and beyond.
    The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4286-0-3-402    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                        301           231            176
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............                                      495            105
    1505    Allowance for subsidy cost (-)..                                     -464            -87
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............                                       31             18
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                        301           262            194
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............                                       10
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                        301           252            194
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                        301           262            194
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                        301           262            194
    -----------------------------------------------------------------------------------------------

                  Community Development Financial Institutions

                              Fund Program Account

        To carry out the Community Development Banking and Financial
    Institutions Act of 1994, including services authorized by 5 U.S.C.
    3109, but at rates for individuals not to exceed the per diem rate
    equivalent to the rate for ES-3, $51,000,000, to remain available until
    September 30, 2005, of which $3,000,000 shall be for financial and
    technical assistance and training programs designed to benefit Native
    American, Native Hawaiian, and Alaskan Native communities, and up to
    $13,000,000 may be used for administrative expenses, including
    administration of the New Markets Tax Credit, up to $6,000,000 may be
    used for the cost of direct loans, and up to $250,000 may be used for
    administrative expenses to carry out the direct loan program: Provided,
    That the cost of direct loans, including the cost of modifying such
    loans, shall be as defined in section 502 of the Congressional Budget
    Act of 1974, as amended: Provided further, That these funds are
    available to subsidize gross obligations for the principal amount of
    direct loans not to exceed $11,000,000.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1881-0-1-451      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           3           2           2
    00.05 Restimate of direct loan subsidy..                       1
    00.10 General administrative expenses...          11          11          13
    00.11 Bank enterprise awards program....          23          17           8
    00.12 Financial Assistance..............          37          28          22
    00.13 Technical Assistance..............           3          10           3
    00.14 Native American/Hawaiian Program..           3           5           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          80          74          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           5
    22.00 New budget authority (gross)......          80          69          51
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          84          74          51
    23.95 Total new obligations.............         -80         -74         -51
    24.40 Unobligated balance carried
            forward, end of year............           5
    ----------------------------------------------------------------------------

    [[Page 776]]

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          80          68          51
          Mandatory:

    60.00   Appropriation...................                       1
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          81          69          51
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         173         114          79
    73.10 Total new obligations.............          80          74          51
    73.20 Total outlays (gross).............        -138        -109         -59
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.40 Obligated balance, end of year....         114          79          71
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          16           9           7
    86.93 Outlays from discretionary
            balances........................         122          99          52
    86.97 Outlays from new mandatory
            authority.......................                       1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         138         109          59
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          79          69          51
    90.00 Outlays...........................         136         109          59
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1881-0-1-451      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Community Development Financial
            Institutions Program Financial
            Assistance Component- Direct
            Loans...........................           8           5           5
                                               ---------   ---------  ----------
    115901Total direct loan levels..........           8           5           5
        Direct loan subsidy (in percent):
    132001Community Development Financial
            Institutions Direct Loan........       38.44       36.94       34.37
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       38.44       36.94       34.37
        Direct loan subsidy budget authority:
    133001Community Development Financial
            Institutions Direct Loan........           3           2           2
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           3           2           2
        Direct loan subsidy outlays:
    134001Community Development Financial
            Institutions Direct Loan........           3           2           2
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           3           2           2
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Community Development Financial
            Institutions Direct Loan........                       1
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................                       1
        Direct loan upward reestimate subsidy outlays:
    136001Community Development Financial
            Institutions Direct Loan........                       1
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...                       1
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Community Development Financial
            Institutions Direct Loan........                      -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................                      -1
        Direct loan downward reestimate subsidy
                    outlays:
    138001Community Development Financial
            Institutions Direct Loan........                      -1
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................                      -1
    ---------------------------------------------------------------------------

        The Riegle Community Development and Regulatory Improvement Act of
    1994 established the Community Development Financial Institutions (CDFI)
    Fund. The CDFI Fund provides equity investments, grants, loans, and
    technical assistance to new and existing community development financial
    institutions (CDFIs) such as community development banks, community
    development credit unions, community development loan and venture
    capital funds, and microenterprise loan funds. Funds provided by the
    CDFI Fund will enhance the capacity of these institutions to finance
    economic development, including small businesses, community facilities,
    housing, and other community development initiatives in distressed
    urban, rural, Native American, Native Hawaiian, and Alaska Native
    communities. The CDFI Fund also provides grants to insured depository
    institutions to facilitate investment in CDFIs and increase community
    lending activities. In addition, the CDFI Fund administers the New
    Markets Tax Credit Program by providing allocations of tax credits to
    Community Development Entities (CDEs) which in turn provide the tax
    credits to entities which invest in the CDEs. The Fund is seeking
    reauthorization of its activities under the Community Development
    Banking and Financial Institutions Act.

        The CDFI Fund helps to address the urgent problems of declining
    economic and social infrastructure, loss of jobs, lack of private
    enterprise, and deteriorating housing facing many American communities
    today. Government investment and technical assistance supplements
    private funds and expertise to ensure that CDFIs are effective in
    restoring and creating healthy economies.

                              PERFORMANCE MEASURES

                                         2002 actual  2003 est.   2004 est.
    Number of CDFIs selected to receive
    financial assistance (includes Core,
    and SECA)...........................          74         N/A         N/A
    Number of organizations that receive
    technical assistance................         119         N/A         N/A

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1881-0-1-451      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           4           5           5
    12.1  Civilian personnel benefits.......           1           1           1
    23.1  Rental payments to GSA............           1           1           1
    25.2  Other services....................           5           4           6
    41.0  Grants, subsidies, and
            contributions...................          69          63          38
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          80          74          51
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-1881-0-1-451      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          59          68          71
    ---------------------------------------------------------------------------

    Community Development Financial Institutions Fund Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4088-0-3-451      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           8           5           5
    08.02 Payment of a downward reestimate
            to a receipt account............                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           8           6           5
    ----------------------------------------------------------------------------

    [[Page 777]]

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          10           7           7
    22.70 Balance of authority to borrow
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           9           7           7
    23.95 Total new obligations.............          -8          -6          -5
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............           5           2           2
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          10           5           5
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -5
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           5           5           5
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          10           7           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          12           9
    73.10 Total new obligations.............           8           6           5
    73.20 Total financing disbursements
            (gross).........................         -20         -10         -10
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           5
    74.40 Obligated balance, end of year....          12           9           6
    87.00 Total financing disbursements
            (gross).........................          20          10          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3          -3          -2
              Non-Federal sources:
    88.40       Non-Federal sources Intrest
                  repayments................          -5          -1          -2
    88.40       Non-Federal sources--
                  Principal.................          -2          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -10          -5          -5
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           5
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           5           2           2
    90.00 Financing disbursements...........          10           5           5
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4088-0-3-451      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          11          11          11
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          11          11          11
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          24          41          50
    1231  Disbursements: Direct loan
            disbursements...................          18          10          10
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1          -1
    1263  Write-offs for default: Direct
            loans...........................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          41          50          59
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4088-0-3-451    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net           3
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          24             41            50             59
    1405    Allowance for subsidy cost (-)..          -9            -16           -18            -20
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          15             25            32             39
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          18             25            32             39
        LIABILITIES:
    2103  Federal liabilities: Debt.........          18             25            32             39
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          18             25            32             39
        NET POSITION:
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          18             25            32             39
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                        Violent Crime Reduction Programs

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-8526-0-1-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Departmental Offices............           1           2
    00.04   Bureau of Alcohol, Tobacco and
              Firearms......................           3           3
    00.05   Customs Service.................           8          16          16
    00.06   Secret Service..................           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          13          22          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          46          38          16
    22.00 New budget authority (gross)......          -1
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          50          38          16
    23.95 Total new obligations.............         -13         -22         -16
    24.40 Unobligated balance carried
            forward, end of year............          38          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.73   Reduction pursuant to P.L. 107-
              206...........................          -1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          81          39           1
    73.10 Total new obligations.............          13          22          16
    73.20 Total outlays (gross).............         -50         -62         -17
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.40 Obligated balance, end of year....          39           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          50          62          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -1
    90.00 Outlays...........................          50          62          17
    ---------------------------------------------------------------------------

        Amounts for the Department of the Treasury's portion of Crime
    Control Programs are derived from transfers from the Violent Crime
    Reduction Trust Fund (VCRTF) as authorized by the Crime Control and Law
    Enforcement Act of 1994. The VCRTF was authorized through 2000. Spending
    of prior-year appropriations continues.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-8526-0-1-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    12.1  Civilian personnel benefits.......           1           1
    25.2  Other services....................           4           6           4
    25.3  Other purchases of goods and
            services from Government
            accounts........................           5          12           9
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          13          22          16
    ---------------------------------------------------------------------------

    [[Page 778]]

                                  Federal Funds

                      Financial Crimes Enforcement Network

                              salaries and expenses

        For necessary expenses of the Financial Crimes Enforcement Network,
    including hire of passenger motor vehicles; travel expenses of non-
    Federal law enforcement personnel to attend meetings concerned with
    financial intelligence activities, law enforcement, and financial
    regulation; not to exceed $14,000 for official reception and
    representation expenses; and for assistance to Federal law enforcement
    agencies, with or without reimbursement, $57,571,000, of which not to
    exceed $4,500,000 shall remain available until September 30, 2006; and
    of which $8,152,000 shall remain available until September 30, 2005:
    Provided, That funds appropriated in this account may be used to procure
    personal services contracts.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0173-0-1-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Investigative analysis, BSA
            administration, and
            international activities........          39          43          50
    00.02 Regulatory support programs,
            including money services
            businesses......................           7           8           8
    09.01 Reimbursable program..............           4           4           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          50          55          59
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           5           5
    22.00 New budget authority (gross)......          52          55          59
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          56          60          64
    23.95 Total new obligations.............         -50         -55         -59
    24.40 Unobligated balance carried
            forward, end of year............           5           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          48          51          58
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           2           4           1
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           4           4           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          52          55          59
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8          11          10
    73.10 Total new obligations.............          50          55          59
    73.20 Total outlays (gross).............         -46         -54         -57
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
    74.40 Obligated balance, end of year....          11          10          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          37          44          46
    86.93 Outlays from discretionary
            balances........................           9          10          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          46          54          57
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -4          -1
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          48          51          58
    90.00 Outlays...........................          44          50          56
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           2           2
    99.01 Outlays...........................           1           2           2
    ---------------------------------------------------------------------------

        FinCEN, created in 1990 and elevated to bureau status in 2001,
    supports law enforcement investigations to prevent and detect money
    laundering, terrorist financing, and other financial crimes. FinCEN
    links law enforcement, financial, and regulatory communities into a
    single information-sharing network. Using Bank Secrecy Act (BSA)
    information reported by banks and other financial institutions, FinCEN
    serves as the nation's central clearinghouse for broad-based financial
    intelligence and information sharing on money laundering. This
    information helps illuminate the financial trail for investigators to
    follow as they track criminals and their assets.

        Investigative Analysis, BSA Administration, and International
    Activities.--Through their investigative analysis efforts, FinCEN
    provides support for the investigation and prosecution of law
    enforcement cases at the Federal, state, local and international levels,
    using financial data collected under the BSA, as well as other
    commercial and law enforcement information. FinCEN serves as a catalyst
    for research, analysis, and dissemination of information on money
    laundering methods and trends through joint case analysis with law
    enforcement, integration of all source information and the application
    of state-of-art data processing techniques. FinCEN also establishes
    policies to administer the BSA effectively while balancing the
    associated burden imposed on the regulated financial institutions.
    Internationally, FinCEN maintains in-depth, country-specific expertise
    concerning money laundering, terrorist financing, and other financial
    crimes around the world to assist decision makers in developing and
    promoting U.S. government anti-money laundering policies. FinCEN also
    uses this expertise to promote the development of Financial Intelligence
    Units (FIUs) in other countries, and to facilitate investigative
    exchanges with them.

        Regulatory Support Program, including Money Services Businesses.--
    This program supports new requirements to strengthen anti-money
    laundering controls with the money services business industry, casino,
    broker/dealer, securities, and other industries with new program or
    reporting requirements under the Bank Secrecy Act (BSA). The USA Patriot
    Act has expanded anti-money laundering program and reporting
    requirements to a number of industries previously not covered by the
    BSA. FinCEN will undertake programs to reach these new industry groups,
    as necessary. FinCEN will also continue efforts with the IRS, especially
    related to the money service business industry, to assure compliance,
    respond to public inquiries, distribute forms and publications, and
    support information processing of the BSA data.

                              PERFORMANCE MEASURES

                                         2002 actual  2003 est.   2004 est.
      Number of subjects in completed
        investigative analytical reports      30,840     34,000-
                                                          40,000     36,000-
                                                                      42,000
      Number of investigative cases
        networked among law enforcement
        agencies........................       1,600 2,000-3,000 4,000-5,000
      Percent of customers satisfied
        with investigative analytical
        reports.........................         79%      80-83%      85-90%
      Average time to process a civil
        penalty case [calendar year]....   1.5 years   1.5 years   1.5 years
      Number of investigative
        information exchanges
        coordinated with foreign
        jurisdictions...................         760     500-600     500-600

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0173-0-1-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          15          19          21
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          16          20          22
    12.1    Civilian personnel benefits.....           3           4           5
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.1    Rental payments to GSA..........           3           3           4
    23.3    Communications, utilities, and
              miscellaneous charges.........                       1           1

    [[Page 779]]

    25.2    Other services..................           3           6           8
    25.3    Other purchases of goods and
              services from Government
              accounts......................          11           8           9
    25.4    Operation and maintenance of
              facilities....................           1           1           1
    25.7    Operation and maintenance of
              equipment.....................           6           5           5
    31.0    Equipment.......................           2           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          46          51          58
    99.0  Reimbursable obligations..........           4           4           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          50          55          59
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0173-0-1-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         200         254         277
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           5           5
    ---------------------------------------------------------------------------

                           INTERAGENCY LAW ENFORCEMENT

                                  Federal Funds

    General and special funds:

                     Interagency Crime and Drug Enforcement

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1501-0-1-751      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Internal Revenue Service..........          66          66
    00.02 Bureau of Alcohol, Tobacco and
            Firearms........................          11          11
    00.03 United States Customs Service.....          31          30
    00.04 Departmental Offices..............                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................         108         108
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         108         108
    23.95 Total new obligations.............        -108        -108
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         108         108
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          64           4
    73.10 Total new obligations.............         108         108
    73.20 Total outlays (gross).............        -168        -112
    74.40 Obligated balance, end of year....           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         104         108
    86.93 Outlays from discretionary
            balances........................          64           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         168         112
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         108         108
    90.00 Outlays...........................         168         112
    ---------------------------------------------------------------------------

        The Interagency Crime and Drug Enforcement fund has been transferred
    from the Department of the Treasury to the Department of Justice.

                          FINANCIAL MANAGEMENT SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        For necessary expenses of the Financial Management Service,
    $228,606,000, of which not to exceed $9,220,000 shall remain available
    until September 30, 2006, for information systems modernization
    initiatives; and of which not to exceed $2,500 shall be available for
    official reception and representation expenses.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1801-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Debt collection fund..............          35          28          30
        Appropriations:
    05.00 Debt collection fund..............         -35         -28         -30
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1801-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.05   Payments........................         143         130         134
    00.06   Collections.....................          12          16          16
    00.07   Debt collection.................          43          48          50
    00.08   Governmentwide accounting and
              reporting.....................          49          55          59
    09.01 Reimbursable program..............         133         110         119
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         380         359         378
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          41          38          38
    22.00 New budget authority (gross)......         367         359         378
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         419         397         416
    23.95 Total new obligations.............        -380        -359        -378
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          38          38          40
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         213         221         229
    40.36   Unobligated balance rescinded...         -14
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         199         221         229
          Mandatory:

    60.20   Appropriation (special fund)....          35          28          30
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         131         110         119
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           2
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         133         110         119
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         367         359         378
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          38          40          41
    73.10 Total new obligations.............         380         359         378
    73.20 Total outlays (gross).............        -359        -358        -376
    73.40 Adjustments in expired accounts
            (net)...........................          -4
    73.45 Recoveries of prior year
            obligations.....................         -11
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -2
    74.40 Obligated balance, end of year....          40          41          41
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         301         289         304
    86.93 Outlays from discretionary
            balances........................          40          41          42
    86.97 Outlays from new mandatory
            authority.......................          17          28          30
    86.98 Outlays from mandatory balances...           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         359         358         376
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -131        -110        -119

    [[Page 780]]

          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         234         249         259
    90.00 Outlays...........................         230         248         257
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          10          11          12
    99.01 Outlays...........................          10          11          12
    ---------------------------------------------------------------------------

        1. Payments.--FMS implements payment policy and procedures for the
    Federal Government, issues and distributes payments, promotes the use of
    electronics in the payment process, and assists agencies in converting
    payments from paper checks to electronic funds transfer (EFT). The
    control and financial integrity of the Federal payments and collections
    process includes reconciliation, accounting, and claims activities. The
    claims activity settles claims against the United States resulting from
    Government checks which have been forged, lost, stolen, or destroyed,
    and collects monies from those parties liable for fraudulent or
    otherwise improper negotiation of Government checks.

                              PERFORMANCE MEASURES

                                         2002 actual  2003 est.   2004 est.
    FMS will make paper check and EFT
    payments on time....................        100%        100%        100%
    FMS will make paper check and EFT
    payments accurately.................        100%        100%        100%

                               WORKLOAD STATISTICS

                                   (Thousands)

                                         2002 actual  2003 est.   2004 est.
    1. Number of check claims submitted.       1,736       1,400       1,350
    2. Number of check payments.........   252,849 *     244,000     238,000
    3. Number of electronic payments....     665,905     677,000     696,000

        * Does not include approximately 86 million tax relief (rebate)
    checks.

        2. Collections.--FMS implements collections policy, regulations,
    standards, and procedures for the Federal Government, facilitates
    collections, promotes the use of electronics in the collections process,
    and assists agencies in converting collections from paper to electronic
    media.

                              PERFORMANCE MEASURES

                                         2002 actual  2003 est.   2004 est.
    FMS will collect electronically the
    total dollar amount of Federal
    government receipts.................         79%         80%         81%

        3. Debt Collection.--FMS provides debt collection operational
    services to client agencies which includes collection of delinquent
    accounts, offset of Federal payments against debts owed the government,
    post-judgment enforcement, consolidation of information reported to
    credit bureaus, reporting for discharged debts or vendor payments, and
    disposition of foreclosed property.

                              PERFORMANCE MEASURES

                                            2002        2003        2004
    Amount of delinquent debt collected
    through all available tools.........      $2.84
                                                  billion
                                                    $2.8 billion$2.9 billion
    Percentage of delinquent debt
    referred to FMS for collection
    compared to amount eligible for
    referral............................         93%         85%         90%

        4. Government-wide Accounting and Reporting.--FMS provides financial
    accounting, reporting, and financing services to the Federal Government
    and the Government's agents who participate in the payments and
    collections process by generating a series of daily, monthly, quarterly
    and annual Government-wide reports. FMS also works directly with
    agencies to help reconcile reporting differences.

                              PERFORMANCE MEASURES

                                         2002 actual  2003 est.   2004 est.
    FMS will issue accurate government-
    wide accounting reports.............        100%        100%        100%
    FMS will issue accurate government-
    wide accounting reports on time.....        100%        100%        100%
    Percentage of reporting locations
    with reconciliation differences, for
    deposits and payments, less than
    four months old.....................         N/A         95%         95%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1801-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         117         123         127
    11.3      Other than full-time permanent           1           1           2
    11.5      Other personnel compensation..           3           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         121         127         132
    12.1    Civilian personnel benefits.....          27          26          28
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.1    Rental payments to GSA..........          15          18          18
    23.3    Communications, utilities, and
              miscellaneous charges.........          13          15          15
    24.0    Printing and reproduction.......           1           1           1
    25.1    Advisory and assistance services           5           4           4
    25.2    Other services..................          26          26          27
    25.3    Other purchases of goods and
              services from Government
              accounts......................           4           5           5
    25.4    Operation and maintenance of
              facilities....................           1           1           1
    25.7    Operation and maintenance of
              equipment.....................           7           8           8
    26.0    Supplies and materials..........           4           5           6
    31.0    Equipment.......................          19          10          11
    32.0    Land and structures.............           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         246         248         258
    99.0  Reimbursable obligations..........         132         110         119
    99.5  Below reporting threshold.........           2           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         380         359         378
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-1801-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,894       2,073       2,086
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          92          39          39
    ---------------------------------------------------------------------------

             Payment to Department of Justice, FIRREA Related Claims

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0177-0-1-752      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           2
    74.40 Obligated balance, end of year....           2           2           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        In 1998, the Secretary of the Treasury was authorized to use funds
    made available to the FSLIC Resolution Fund to reimburse the Department
    of Justice for the reasonable expenses of litigation that were incurred
    in the defense of claims against the U.S. arising from FIRREA and its
    implementation.

    [[Page 781]]

                 Payment to the Resolution Funding Corporation

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1851-0-1-908      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........         675       1,191       1,707
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         675       1,191       1,707
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         675       1,191       1,707
    23.95 Total new obligations.............        -675      -1,191      -1,707
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         675       1,191       1,707
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         675       1,191       1,707
    73.20 Total outlays (gross).............        -675      -1,191      -1,707
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         675       1,191       1,707
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         675       1,191       1,707
    90.00 Outlays...........................         675       1,191       1,707
    ---------------------------------------------------------------------------

        The Financial Institutions Reform, Recovery, and Enforcement Act of
    1989 (FIRREA) authorized and appropriated to the Secretary of the
    Treasury, such sums as may be necessary to cover interest payments on
    obligations issued by the Resolution Funding Corporation (REFCORP).
    REFCORP was established under the Act to raise $31.2 billion for the
    Resolution Trust Corporation (RTC) in order to resolve savings
    institution insolvencies.

        Sources of payment for interest due on REFCORP obligations include
    REFCORP investment income, proceeds from the sale of assets or warrants
    acquired by the RTC, and annual contributions by the Federal Home Loan
    Banks. If these payment sources are insufficient to cover all interest
    costs, funds appropriated to the Treasury shall be used to meet the
    shortfall.

         Payment to Terrestrial Wildlife Habitat Restoration Trust Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1738-0-1-306      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Cheyenne River Sioux Tribe
            terrestrial wildlife habitat
            restoration trust fund..........           4           4           4
    00.02 Lower Breul Sioux Tribe
            terrestrial wildlife habitat
            restoration trust fund..........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           5           5           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           5           5           5
    23.95 Total new obligations.............          -5          -5          -5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           5           5           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           5           5           5
    73.20 Total outlays (gross).............          -5          -5          -5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           5           5           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5           5           5
    90.00 Outlays...........................           5           5           5
    ---------------------------------------------------------------------------

        Section 604(b) of the Water Resources Development Act of 1999 (P.L.
    106-53) requires that the Secretary of the Treasury, beginning in 1999,
    deposit $5 million annually (74 percent into the Cheyenne River Sioux
    Tribe Terrestrial Wildlife Restoration Trust Fund and 26 percent into
    the Lower Brule Sioux Tribe Terrestrial Wildlife Restoration Trust Fund)
    until a total of $57.4 million has been deposited.

                     Federal Reserve Bank Reimbursement Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1884-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........         113         135         150
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................         113         135         150
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          29
    22.00 New budget authority (gross)......          84         135         150
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         113         135         150
    23.95 Total new obligations.............        -113        -135        -150
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          84         135         150
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          28          47          47
    73.10 Total new obligations.............         113         135         150
    73.20 Total outlays (gross).............         -93        -135        -139
    74.40 Obligated balance, end of year....          47          47          58
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          64          57          61
    86.98 Outlays from mandatory balances...          29          78          78
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          93         135         139
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          84         135         150
    90.00 Outlays...........................          94         135         139
    ---------------------------------------------------------------------------

        This fund was established as a permanent, indefinite appropriation
    to allow the Financial Management Service to reimburse the Federal
    Reserve Banks for services provided in their capacity as depositaries
    and fiscal agents for the United States.

                            Financial Agent Services

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1802-2-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                                 386
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.1)...................                                 386
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 386
    23.95 Total new obligations.............                                -386
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                 386
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 386
    73.20 Total outlays (gross).............                                -386
    ----------------------------------------------------------------------------

    [[Page 782]]

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 386
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 386
    90.00 Outlays...........................                                 386
    ---------------------------------------------------------------------------

        The Budget includes a proposal to establish a permanent, indefinite
    appropriation to allow the Financial Management Service to reimburse
    financial institutions for services provided in their capacity as
    depositaries and fiscal agents for the United States. The services
    provided are authorized under numerous statutes, including, but not
    limited to, 12 U.S.C. 90 and 265. The services include the acceptance
    and processing of deposits of public money, as well as services
    essential to the disbursement of and accounting for public monies.

        See Chapter 13, ``Federal Borrowing and Debt,'' of Analytical
    Perspectives for further discussion.

                          Interest on Uninvested Funds

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1860-0-1-908      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           6           8           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................           6           8           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           6           8           6
    23.95 Total new obligations.............          -6          -8          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           6           8           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          20          19          19
    73.10 Total new obligations.............           6           8           6
    73.20 Total outlays (gross).............          -8          -8          -5
    74.40 Obligated balance, end of year....          19          19          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           6           8           5
    86.98 Outlays from mandatory balances...           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           8           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           8           6
    90.00 Outlays...........................           8           8           5
    ---------------------------------------------------------------------------

        Under conditions of the law creating each trust, interest accruing
    and payable from the general fund of the Treasury is appropriated for
    payment to the proper fund receipt accounts (31 U.S.C. 1321; 2 U.S.C.
    158; 20 U.S.C. 74a and 101; 24 U.S.C. 46; and 69 Stat. 533). Pursuant to
    Public Law 101-510, commencing October 1, 1991, the Soldiers' Home
    Permanent Fund will be invested in Treasury securities.

                   Federal Interest Liabilities to the States

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1877-0-1-908      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           6           4           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           6           4           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           6           4           6
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           4           6
    23.95 Total new obligations.............          -6          -4          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           6           4           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1
    73.10 Total new obligations.............           6           4           6
    73.20 Total outlays (gross).............          -6          -4          -6
    73.45 Recoveries of prior year
            obligations.....................          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           6           4           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           4           6
    90.00 Outlays...........................           6           4           6
    ---------------------------------------------------------------------------

        As provided by statute and regulation, interest is paid to States
    when Federal funds are not transferred in a timely manner.

                   Interest Paid to Credit Financing Accounts

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1880-0-1-908      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........       4,276       3,787       3,812
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................       4,276       3,787       3,812
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       4,276       3,787       3,812
    23.95 Total new obligations.............      -4,276      -3,787      -3,812
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       4,276       3,787       3,812
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............       4,276       3,787       3,812
    73.20 Total outlays (gross).............      -4,276      -3,787      -3,812
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       4,276       3,787       3,812
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,276       3,787       3,812
    90.00 Outlays...........................       4,276       3,787       3,812
    ---------------------------------------------------------------------------

        Loan guarantee financing accounts receive various payments and fees
    and make payments on defaults. When cash balances result from an excess
    of receipts over outlays, these balances are deposited at the Treasury
    and earn interest. This account pays such interest to credit loan
    guarantee financing accounts from the general fund of the Treasury in
    accordance with section 505(c) of the Federal Credit Reform Act of 1990.
    The estimates of interest paid by this fund are

    [[Page 783]]

    derived from the estimates of interest received in the various financing
    accounts.

                       Claims, Judgments, and Relief Acts

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1895-0-1-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Claims adjudicated administratively:

    00.01   Claims for damages..............           6           6           7
    00.03   Claims for contract disputes....         338         126         128
                                               ---------   ---------  ----------
    00.91   Total claims adjudicated
              administratively..............         344         132         135
          Court judgments:

    01.01   Judgments, Court of Claims......         313          30          35
    01.02   Judgments, U.S. courts..........       1,193         759         765
                                               ---------   ---------  ----------
    01.91     Total court judgments.........       1,506         789         800
    09.01 Reimbursable program..............           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,855         921         935
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,855         921         935
    23.95 Total new obligations.............      -1,855        -921        -935
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       1,850         921         935
    69.00 Offsetting collections (cash).....           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,855         921         935
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         126         154
    73.10 Total new obligations.............       1,855         921         935
    73.20 Total outlays (gross).............      -1,827      -1,075        -935
    74.40 Obligated balance, end of year....         154
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,827         921         935
    86.98 Outlays from mandatory balances...                     154
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,827       1,075         935
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,850         921         935
    90.00 Outlays...........................       1,822       1,075         935
    ---------------------------------------------------------------------------

        Appropriations are made for payment of claims and interest for
    damages not chargeable to appropriations of individual agencies and for
    payment of private and public relief acts. Public Law 95-26 authorized a
    permanent indefinite appropriation to pay certain judgments from the
    general funds of the Treasury.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1895-0-1-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    42.0  Direct obligations: Insurance
            claims and indemnities..........       1,850         921         935
    99.0  Reimbursable obligations:
            Reimbursable obligations........           5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,855         921         935
    ---------------------------------------------------------------------------

                       Payment of Anti-Terrorism Judgments

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1811-0-1-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........         146          23
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................         146          23
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         169          23
    23.95 Total new obligations.............        -146         -23
    24.40 Unobligated balance carried
            forward, end of year............          23
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         146          23
    73.20 Total outlays (gross).............        -146         -23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...         146          23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         146          23
    ---------------------------------------------------------------------------

        This account was established pursuant to section 2002 of the Victims
    of Trafficking and Violence Protection Act, Public Law 106-386, for the
    purpose of making payments to persons who hold certain categories of
    judgments against Iran in suits brought under 28 U.S.C. 1605a(7).

                        Restitution of Foregone Interest

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1875-0-1-908      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         183
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................         183
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         183
    23.95 Total new obligations.............        -183
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         183
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         183
    73.20 Total outlays (gross).............        -183
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         183
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         183
    90.00 Outlays...........................         183
    ---------------------------------------------------------------------------

        The payment of interest on investments in Treasury securities that
    the Secretary of the Treasury suspended or redeemed during the ``debt
    limit suspension period'' that he declared during 2002. The statutes
    permit this action when Treasury is constrained by the statutory debt
    limit. They require that the Treasury restore all due interest and
    principal to these funds as soon as this can be done without exceeding
    the debt limit. A payment of interest was made to the Civil Service
    Retirement and Disability Fund for $15 million and the G-Fund within the
    Thrift Savings Fund for $168 million.

                           Biomass Energy Development

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0114-0-1-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11          15
    22.00 New budget authority (gross)......           4           4           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          15          19           5

    [[Page 784]]

    23.98 Unobligated balance expiring or
            withdrawn.......................                     -19          -5
    24.40 Unobligated balance carried
            forward, end of year............          15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............           4           4           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           2           2
    74.40 Obligated balance, end of year....           2           2           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.45   Offsetting collections (cash)
              from: Offsetting governmental
              collections (from non-Federal
              sources)......................          -4          -4          -5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -4          -4          -5
    ---------------------------------------------------------------------------

        This account was created to provide loan guarantees for the
    construction of biomass-to-ethanol facilities, as authorized under Title
    II of the Energy Security Act. All of the loans guaranteed by this
    account went into default. The guarantees have been paid off, and the
    assets of all but one of the projects have been liquidated. The one
    remaining project, the New Energy Company of Indiana, continues to make
    payments to the Treasury on their loan, which the government acquired
    after paying off the guarantee.

                      Continued Dumping and Subsidy Offset

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5688-0-2-376      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Continued dumping receipts........         312         321         331
        Appropriations:
    05.00 Continued dumping appropriations..        -312        -321        -331
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5688-0-2-376      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........         543         305         314
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         543         305         314
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         247          16          32
    22.00 New budget authority (gross)......         312         321         331
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         559         337         363
    23.95 Total new obligations.............        -543        -305        -314
    24.40 Unobligated balance carried
            forward, end of year............          16          32          49
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....         312         321         331
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                     312         296
    73.10 Total new obligations.............         543         305         314
    73.20 Total outlays (gross).............        -231        -321        -331
    74.40 Obligated balance, end of year....         312         296         279
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     305         314
    86.98 Outlays from mandatory balances...         231          16          17
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         231         321         331
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         312         321         331
    90.00 Outlays...........................         231         321         331
    ---------------------------------------------------------------------------

        The U.S. Customs Service collects duties assessed pursuant to a
    countervailing duty order, an anitdumping duty order, or a finding under
    the Antidumping Act of 1921. Under a provision enacted in 2000, the
    Customs Service currently distributes these duties to affected domestic
    producers. These distributions provide a significant additional benefit
    to procedures that already gain protection from the increased import
    prices provided by the tariffs. While the Administration does not
    believe that these payments are inconsistent with U.S. treaty
    obligations, legislative repeal of the provision would allow the funds
    to be directed to higher priority uses.

    Public enterprise revolving fund:

                          Check Forgery Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4109-0-3-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................                       3           3
    09.01 Reimbursable program..............          23          20          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          23          23          20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11          11          11
    22.00 New budget authority (gross)......          23          23          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          34          34          31
    23.95 Total new obligations.............         -23         -23         -20
    24.40 Unobligated balance carried
            forward, end of year............          11          11          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                       3           3
    69.00 Offsetting collections (cash).....          23          20          17
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          23          23          20
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1
    73.10 Total new obligations.............          23          23          20
    73.20 Total outlays (gross).............         -24         -23         -20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          23          12          20
    86.98 Outlays from mandatory balances...           1          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          24          23          20
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -23         -20         -17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       3           3
    90.00 Outlays...........................           1           3           3
    ---------------------------------------------------------------------------

        This fund was established as a permanent, indefinite appropriation
    in order to maintain adequate funding of the Check Forgery Insurance
    Fund (Fund). The Fund facilitates timely payments for replacement
    Treasury checks necessitated due to a claim of forgery. The Fund recoups
    disbursements through reclamations made against banks negotiating forged
    checks.

        To reduce hardships sustained by payees of Government checks that
    have been stolen and forged, settlement is made in advance of the
    receipt of funds from the endorsers of the checks. If the U.S. Treasury
    is unable to recover funds through reclamation procedures, the Fund
    sustains the loss.

    [[Page 785]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4109-0-3-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    42.0  Direct obligations: Insurance
            claims and indemnities..........                       3           3
    42.0  Reimbursable obligations:
            Insurance claims and indemnities          23          20          17
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          23          23          20
    ---------------------------------------------------------------------------

                                   Trust Funds

      Cheyenne River Sioux Tribe Terrestrial Wildlife Habitat Restoration
                                   Trust Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-8209-0-7-306      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          16          21          26
        Receipts:
    02.40 General fund payments, Cheyenne
            river sioux tribe terrestrial
            wildlife habitat restoration....           4           4           4
    02.41 Earnings on investments...........                                   1
    02.42 General fund payments, Lower bruel
            sioux tribe terrestrial wildlife
            habitat restoration.............           1           1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..           5           5           6
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          21          26          32
        Appropriations:
    05.00 Cheyenne river sioux tribe
            terrestrial wildlife habitat
            restoration.....................
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          21          26          32
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-8209-0-7-306      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           5           5           5
    60.45   Portion precluded from
              obligation....................          -5          -5          -5
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          16          22          27
    92.02 Total investments, end of year:
            Federal securities: Par value...          22          27          33
    ---------------------------------------------------------------------------

        This schedule reflects the payments made to the Cheyenne River Sioux
    Tribe Terrestrial Wildlife Restoration Trust Fund and the Lower Brule
    Sioux Tribe Terrestrial Wildlife Restoration Trust Fund. After the funds
    are fully capitalized (at a total level of $57.4 million), interest
    earned will be available to carry out the purposes of the funds.

                        FEDERAL FINANCING BANK ACTIVITIES

                                  Federal Funds

    Intragovernmental funds:

                             Federal Financing Bank

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4521-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Administrative expenses...........           3           3           3
    09.02 Interest on borrowings from
            Treasury........................       2,040       2,268       2,482
    09.03 Interest on borrowings from civil
            service retirement trust fund...       1,337         403
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,380       2,674       2,485
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    22.00 New budget authority (gross)......       3,380       2,673       2,485
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,381       2,674       2,486
    23.95 Total new obligations.............      -3,380      -2,674      -2,485
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         139          50          58
    69.00 Offsetting collections (cash).....       3,329       2,623       2,427
    69.47 Portion applied to repay debt.....         -88
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................       3,241       2,623       2,427
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,380       2,673       2,485
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         337         337         337
    73.10 Total new obligations.............       3,380       2,674       2,485
    73.20 Total outlays (gross).............      -3,380      -2,673      -2,485
    74.40 Obligated balance, end of year....         337         337         337
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       3,380       2,673       2,485
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........      -3,329      -2,623      -2,427
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          51          50          58
    90.00 Outlays...........................          51          50          58
    ---------------------------------------------------------------------------

        The Federal Financing Bank (FFB) was created in 1973 to reduce the
    costs of Federal and federally-assisted borrowing and to ensure the
    coordination of such borrowing from the public in a manner least
    disruptive to private financial markets and institutions. Prior to that
    time, many agencies borrowed directly from the private market to finance
    credit programs involving lending to the public at higher rates than on
    comparable Treasury securities. With the implementation of the Federal
    Credit Reform Act in 1992, however, agencies simply finance such loan
    programs through direct loan financing accounts that borrow directly
    from the Treasury. Therefore, FFB loans are now used primarily to
    finance direct agency activities such as construction of Federal
    buildings by the General Services Administration and meeting the
    financing requirements of the U.S. Postal Service. In certain cases, the
    FFB finances Federal direct loans to the public that would otherwise be
    made by private lenders and fully guaranteed by a Federal agency.

        Lending by the FFB is set at \1/8\ percent above Treasury rates and
    may take one of three forms, depending on the authorizing statutes
    pertaining to a particular agency or program: (1) the FFB may purchase
    agency financial assets; (2) the FFB may acquire debt securities that
    the agency is otherwise authorized to issue to the public; and (3) the
    FFB may originate direct loans on behalf of an agency by disbursing
    loans directly to private borrowers and receiving repayments from the
    private borrower on behalf of the agency. Because law requires that
    transactions by the FFB be treated as a means of financing agency
    obligations, the budgetary effect of the third type of transaction is
    reflected in the budget in the following sequence: a loan by the FFB to
    the agency, a loan by the agency to a private borrower, a repayment by a
    private borrower to the agency, and a repayment by the agency to the
    FFB.

        Under a provision in the 1987 enabling legislation for the
    Agriculture Department's Cushion of credit payments program, the FFB
    receives substantially less interest each year on certain loans that it
    holds than it is contractually entitled

    [[Page 786]]

    to receive. This provision, however, does not reduce the amount of
    interest the FFB owes on its corresponding loans from Treasury. The
    shortfalls in interest received by the FFB as a result of the provision
    resulted in substantial losses to the FFB in the past. The FFB will
    likely experience future losses due to this provision.

        The following table shows the annual net lending by the FFB by
    agency and program and the amount outstanding at the end of each year.
    In October 2002, the FFB redeemed $15 billion of debt that it had issued
    to the Civil Service Retirement and Disability Fund. The FFB repaid this
    debt by borrowing from the Treasury.

                 NET LENDING AND LOANS OUTSTANDING, END OF YEAR

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    A. Department of Agriculture:
      1. Rural housing loans:
        Lending, net....................      -1,470      -1,075
        Loans outstanding...............       2,905       1,830       1,830
      2. Rural development loans:
        Lending, net....................      -1,485        -145        -605
        Loans outstanding...............         950         805         200
      3. Rural Utilities Service:
        Lending, net....................         459         437         400
        Loans outstanding...............      18,325      18,762      18,162
    B. Department of Defense:
      1. Defense working capital funds:
        Lending, net....................        -160        -160        -115
        Loans outstanding...............         781         621         506
    C. Department of Education:
      1. Historically black colleges and
        universities:
        Lending, net....................          37          20          40
        Loans outstanding...............          69          89         129
    D. Department of Housing and Urban
        Development:
      1. Section 108 guaranteed loans:
        Lending, net....................          -3          -2          -2
        Loans outstanding...............           5           3           1
      2. Low-rent public housing:
        Lending, net....................         -71         -71         -71
        Loans outstanding...............       1,207       1,136       1,065
    E. Department of the Interior:
      1. Territory of the Virgin
        Islands:
        Lending, net....................          -2          -1          -2
        Loans outstanding...............          11          10           8
    F. Department of Transportation:
      1. Railroad Revitalization and
        Regulatory Reform Act:
        Lending, net....................
        Loans outstanding...............           3           3           3
    G. General Services Administration:
      1. Federal buildings fund:
        Lending, net....................         -62         -10          10
        Loans outstanding...............       2,206       2,198       2,206
    H. International Assistance
        Programs:
      1. Foreign military sales credit:
        Lending, net....................        -234        -234        -223
        Loans outstanding...............       1,923       1,689       1,466
    I. Small Business Administration:
      1. Section 503 guaranteed loans:
        Lending, net....................         -30         -15         -11
        Loans outstanding...............         102          87          76
    J. Postal Service:
      Lending, net......................        -199      -4,291      -3,046
      Loans outstanding.................      11,114       6,823       3,777
                                        ====================================
    Total lending:
      Lending, net......................      -3,220      -5,547      -3,625
      Loans outstanding.................      39,601      34,054      30,429
                                        ====================================

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................          51          50          58
      Outlays...........................          51          50          58
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                       2           5
      Outlays...........................                       2           5
                                        ------------------------------------
    Total:
      Budget Authority..................          51          52          63
      Outlays...........................          51          52          63
                                        ====================================

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4521-0-4-803    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         577            577           577            577
            Investments in US securities:
    1104      Agency securities, par........      42,609         39,230        37,175         36,218
    1106      Receivables, net..............         873            529           457            382
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      44,059         40,336        38,209         37,177
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       1,198            858           786            711
            Debt:
    2103      Borrowing from Treasury.......      27,979         24,792        37,787         36,889
    2103      Borrowing from the Civil
                service retirement trust
                fund........................      15,000         15,000
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      44,177         40,650        38,573         37,600
        NET POSITION:
    3300  Cumulative results of operations..        -118           -314          -364           -423
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............        -118           -314          -364           -423
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      44,059         40,336        38,209         37,177
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4521-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           3           3           3
    43.0  Interest and dividends............       3,377       2,671       2,482
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,380       2,674       2,485
    ---------------------------------------------------------------------------

                             Federal Financing Bank

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4521-2-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest on Borrowing from
            Treasury........................                       2           5
    09.01 Interest on Borrowing from
            Treasury........................                     -25         -78
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                     -23         -73
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     -23         -73
    23.95 Total new obligations.............                      23          73
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                       2           5
    69.00 Offsetting collections (cash).....                     -25         -78
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                     -23         -73
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                     -23         -73
    73.20 Total outlays (gross).............                      23          73
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     -23         -73
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      25          78
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       2           5
    90.00 Outlays...........................                       2           5
    ---------------------------------------------------------------------------

        Two of the Administration's legislative proposals would affect the
    FFB's interest payments and balances of outstanding

    [[Page 787]]

    debt. First, proposed legislation reducing payments from the Postal
    Service to the Civil Service Retirement and Disability Fund would allow
    the Postal Service Fund to repay its loans from the FFB earlier than
    projected under current law. Second, proposed legislation in the Native
    American and Transitional Housing Direct Loan Program would eliminate
    its need to borrow through the FFB.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4521-2-4-803    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Investments in US securities:
    1104      Agency securities, par........                                   -3,499         -6,194
    1106      Receivables, net..............                                       -8            -23
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                   -3,507         -6,217
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................                                       -8            -23
    2103    Borrowing from Treasury.........                                   -3,497         -6,187
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                   -3,505         -6,210
        NET POSITION:
    3300  Cumulative results of operations..                                       -2             -7
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                       -2             -7
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                   -3,507         -6,217
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4521-2-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    43.0  Direct obligations: Interest and
            dividends.......................                       2           5
    43.0  Reimbursable obligations: Interest
            and dividends...................                     -25         -78
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                     -23         -73
    ---------------------------------------------------------------------------

                    ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

                                  Federal Funds

    General and special funds:

                              salaries and expenses

        For necessary expenses of carrying out section 1111 of the Homeland
    Security Act of 2002, including hire of passenger motor vehicles,
    $80,000,000; of which not to exceed $2,000 for official reception and
    representation expenses; not to exceed $50,000 for cooperative research
    and development programs for Laboratory Services; and provision of
    laboratory assistance to State and local agencies with or without
    reimbursement.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1008-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Protect the Public................          21          23          23
    00.02 Collect revenue...................          52          57          57
                                               ---------   ---------  ----------
    01.92   Total direct program............          73          80          80
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          74          81          81
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          74          81          81
    23.95 Total new obligations.............         -74         -81         -81
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          73          80          80
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          74          81          81
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       6           7
    73.10 Total new obligations.............          74          81          81
    73.20 Total outlays (gross).............         -68         -79         -81
    74.40 Obligated balance, end of year....           6           7           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          68          73          73
    86.93 Outlays from discretionary
            balances........................                       6           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          68          79          81
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Drug enforcement............
    88.00       Other Federal sources.......          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          73          80          80
    90.00 Outlays...........................          67          78          80
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           3           3           3
    99.01 Outlays...........................           3           3           3
    ---------------------------------------------------------------------------

        The Homeland Security Act created a new bureau within the United
    States Department of the Treasury charged with collecting revenue and
    protecting the public. This new bureau enforces the Federal laws and
    regulations relating to alcohol and tobacco by working directly and in
    cooperation with others to: (1) Maintain a sound revenue management and
    regulatory system that continues reducing taxpayer burden, improving
    service, collecting the revenue due and preventing tax evasion and other
    criminal conduct; and (2) Protect the public and prevent consumer
    deception in regulated commodities.

        Performance measurements continue to be refined and improved in
    order to provide viable output and outcome measures for the bureau. The
    organization is participating in the American Customer Satisfaction
    Index with the University of Michigan to benchmark customer services
    satisfaction (e.g. Certificates of Label Approvals).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1008-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          27          30          33
    11.5      Other personnel compensation..           6           5           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          33          35          34
    12.1    Civilian personnel benefits.....          12          13          10
    21.0    Travel and transportation of
              persons.......................           2           2           5
    23.1    Rental payments to GSA..........           5           5           7
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           3           2
    25.2    Other services..................          11          11          19
    26.0    Supplies and materials..........           1           2           1
    31.0    Equipment.......................           7           7           2
    32.0    Land and structures.............                       2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          73          80          80
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          74          81          81
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-1008-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         543         544         544
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          16          15          15
    ---------------------------------------------------------------------------

    [[Page 788]]

                  Internal Revenue Collections for Puerto Rico

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5737-0-2-806      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
          Receipts:

    02.00   Deposits, internal revenue
              collections for Puerto Rico...         341         355         307
    02.00   Legislative proposal subject to
              PAYGO.........................                                  57
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         341         355         364
        Appropriations:
          Appropriations:

    05.00   Internal revenue collections for
              Puerto Rico...................        -341        -355        -307
    05.00   Legislative proposal subject to
              PAYGO.........................                                 -57
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -341        -355        -364
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5737-0-2-806      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:

    00.01 Direct program activity...........         341         355         307
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         341         355         307
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:

    22.00 New budget authority (gross)......         341         355         307
    23.95 Total new obligations.............        -341        -355        -307
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:

          Mandatory:

    60.20   Appropriation (special fund)....         341         355         307
    ----------------------------------------------------------------------------

        Change in obligated balances:

    73.10 Total new obligations.............         341         355         307
    73.20 Total outlays (gross).............        -341        -355        -307
    ----------------------------------------------------------------------------

        Outlays (gross), detail:

    86.97 Outlays from new mandatory
            authority.......................         341         355         307
    ----------------------------------------------------------------------------

        Net budget authority and outlays:

    89.00 Budget authority..................         341         355         307
    90.00 Outlays...........................         341         355         307
    ---------------------------------------------------------------------------

        Excise taxes collected under the Internal Revenue laws of the United
    States on articles produced in Puerto Rico and either transported to the
    United States or consumed on the island are paid to Puerto Rico (26
    U.S.C. 7652).

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................         341         355         307
      Outlays...........................         341         355         307
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                  57
      Outlays...........................                                  57
                                        ------------------------------------
    Total:
      Budget Authority..................         341         355         364
      Outlays...........................         341         355         364
                                        ====================================

                  Internal Revenue Collections for Puerto Rico

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5737-4-2-806      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                                  57
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  57
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  57
    23.95 Total new obligations.............                                 -57
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....                                  57
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  57
    73.20 Total outlays (gross).............                                 -57
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                  57
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  57
    90.00 Outlays...........................                                  57
    ---------------------------------------------------------------------------

        Excise taxes imposed on rum at the generally applicable distilled
    spirits rate of $13.50 per proof gallon imported from places other than
    Puerto Rico and the Virgin Islands are transferred (covered over) to
    Puerto Rico and the Virgin Islands under a permanent provision at a rate
    of $10.50 per proof gallon. A temporary cover-over rate of $13.25 a
    proof gallon applies until the end of 2003. The Budget proposes to
    extend the temporary cover-over rate through the end of 2005.

                        BUREAU OF ENGRAVING AND PRINTING

                                  Federal Funds

    Intragovernmental funds:

                      Bureau of Engraving and Printing Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4502-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Currency program..................         384         465         488
    09.02 Postage program...................          46          40          38
    09.03 Other programs....................          13           8           7
    09.11 Purchase of operating equipment...          44          99          99
    09.12 Plant alterations and experimental
            equipment.......................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         488         613         633
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         154         109           9
    22.00 New budget authority (gross)......         443         513         533
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         597         622         542
    23.95 Total new obligations.............        -488        -613        -633
    24.40 Unobligated balance carried
            forward, end of year............         109           9         -91
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............         443         513         533
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          81          25         105
    73.10 Total new obligations.............         488         613         633
    73.20 Total outlays (gross).............        -544        -533        -533

    [[Page 789]]

    74.40 Obligated balance, end of year....          25         105         205
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         443         513         533
    86.93 Outlays from discretionary
            balances........................         101          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         544         533         533
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Postage.....................         -46         -40         -38
    88.00       Other.......................         -13          -8          -7
    88.40     Currency......................        -384        -465        -488
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -443        -513        -533
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         101          20
    ---------------------------------------------------------------------------

        The Bureau of Engraving and Printing designs, manufactures, and
    supplies Federal Reserve notes, various public debt instruments, as well
    as most evidences of a financial character issued by the United States,
    such as postage and internal revenue stamps. The Bureau executes certain
    printings for various territories administered by the United States,
    particularly postage and revenue stamps.

        The anticipated work volume is based on estimates of requirements
    submitted by agencies served. The program comprises the following
    activities:

        Engraving and printing--
            Currency.--Total deliveries of currency for 2003 and 2004 are
        estimated to be 8.2 and 8.5 billion respectively. During 2002, the
        Bureau delivered 7.0 billion Federal Reserve notes.
            Stamps.--This category of work is comprised of postal and
        internal revenue stamps. The projected requirements of 2003 and 2004
        are estimated to be 9.0 billion and 7.5 billion stamps,
        respectively. In 2002, the Bureau delivered 12.2 billion stamps.
            Securities.--This program encompasses the production of a wide
        variety of bonds, notes, and debentures for the Bureau of Public
        Debt and certain other agencies of the Government.
            Commissions, certificates, etc.--This program is comprised
        primarily of Presidential and Department of Defense commissions and
        certificates, White House invitations, and identification cards for
        various Government agencies. It represents a small portion of the
        Bureau's total workload.

        Space utilized by other agencies.--Other agencies are charged for
    services provided in the space occupied in the Bureau's buildings.

        Other miscellaneous services.--A wide variety of miscellaneous
    services are performed by Bureau personnel for other agencies, which are
    charged on an actual cost basis.

        Purchase of operating equipment.--This category consists of new
    purchases and replacement of printing equipment and other related
    printing items.

        Plant alterations and experimental equipment.--This category
    encompasses alterations made on the Bureau's buildings and purchases of
    experimental equipment.

        The operations of the Bureau are currently financed by means of a
    revolving fund established in accordance with the provisions of Public
    Law 656, August 4, 1950 (31 U.S.C. 181), which requires the Bureau to be
    reimbursed by customer agencies for all costs of manufacturing products
    and services performed. The Bureau is also authorized to assess amounts
    to acquire capital equipment and provide for working capital needs.
    Bureau operations during 2002 resulted in a decrease to retained
    earnings of $29 million.

                              PERFORMANCE MEASURES

                                         2002 actual  2003 est.   2004 est.
    Manufacturing workyears.............       1,775       1,820       1,780
    Protection and accountability of
    assets..............................         452         460         460
    Resource management workyears.......         345         340         330
          Total workyears...............       2,572       2,620       2,570
                                        ====================================
    Manufacturing:
      Federal Reserve orders met as
        requested.......................        100%        100%        100%
      USPS orders met as requested......        100%DiscontinuedDiscontinued
      Change in productivity from prior
        year............................       -6.3%          0%Discontinued
      Manufacturing cost for currency
        (cost per 1000 notes)...........      $30.03      $31.00      $35.00
      Manufacturing cost for stamps 100
        stamp flag coil pressure
        sensitive (cost per 1000 stamps)       $1.48DiscontinuedDiscontinued
      Notes returned by Federal Reserve
        due to manufacturing defect (per
        million notes)..................        .006        .025Discontinued
      Stamps returned by USPS due to
        manufacturing defect (per
        million stamps).................         .02DiscontinuedDiscontinued
      Notes returned by Federal Reserve
        because of counterfeit
        deterrence defect (per million
        notes)..........................       .0142DiscontinuedDiscontinued
      Maintain/Upgrade ISO Certification   Certified   Certified   Certified
    Workload Measure:
      Federal Reserve note deliveries
        (in billions)...................         7.0         8.2         8.5
      Postage stamp deliveries (in
        billions).......................        12.2         9.0         7.5
    Protection and Accountability of
        Assets:
      Currency shipment discrepancies
        (per million notes).............         0.0        0.01        0.01
      Postage Stamp discrepancies (per
        million stamps).................        2.11DiscontinuedDiscontinued
    Resource Management:
      Annual financial statement audit
        opinion......................... Unqualified Unqualified Unqualified
        \1\ Unqualified opinion received.
        \2\ Unqualified opinion expected.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4502-0-4-803    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         391            443           513            533
    0102  Expense...........................        -436           -472          -533           -533
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         -45            -29           -20
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4502-0-4-803    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Non-Federal assets:

    1206    Receivables, net................          22             71            30             20
    1207    Advances and prepayments........           2              4             1              1
          Other Federal assets:

    1801    Cash and other monetary assets..         238            137           168            100
    1802    Inventories and related
              properties....................          73             79            49             30
    1803    Property, plant and equipment,
              net...........................         299            307           337            350
    1901    Other assets--Machinery repair
              parts.........................          21             21            20             15
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         655            619           605            516
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           8             16            20             10
          Non-Federal liabilities:

    2201    Accounts payable................          39             26            25             20
    2206    Pension and other actuarial
              liabilities...................          59             57            60             65
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         106             99           105             95
        NET POSITION:
    3100  Appropriated capital..............          32             32            32             32
    3300  Cumulative results of operations..         517            488           468            389
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         549            520           500            421
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         655            619           605            516
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4502-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         148         162         168
    11.3    Other than full-time permanent..           2           5           5
    11.5    Other personnel compensation....          12          23          24
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         162         190         197
    12.1  Civilian personnel benefits.......          42          55          56
    21.0  Travel and transportation of
            persons.........................           1           5           5
    23.1  Rental payments to GSA............           2           3           3
    23.3  Communications, utilities, and
            miscellaneous charges...........          15          30          35
    24.0  Printing and reproduction.........                       1           1
    25.2  Other services....................          46          51          60

    [[Page 790]]

    26.0  Supplies and materials............         157         178         176
    31.0  Equipment.........................          63         100         100
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         488         613         633
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-4502-0-4-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,400       2,627       2,627
    ---------------------------------------------------------------------------

                               UNITED STATES MINT

                                  Federal Funds

    Public enterprise revolving funds:

                    United States Mint Public Enterprise Fund

        Pursuant to section 5136 of title 31, United States Code, the United
    States Mint is provided funding through the United States Mint Public
    Enterprise Fund for costs associated with the production of circulating
    coins, numismatic coins, and protective services, including both
    operating expenses and capital investments. The aggregate amount of new
    liabilities and obligations incurred during fiscal year 2004 under such
    section 5136 for circulating coinage and protective service capital
    investments of the United States Mint shall not exceed $40,652,000.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4159-0-3-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Circulating coinage...............         176         236         244
    09.02 Commemorative states quarters.....         158         226         236
    09.03 Numismatic and investment products         362         445         450
    09.04 Protection........................          42          39          41
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         738         946         971
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          15          64          64
    22.00 New budget authority (gross)......         827         946         971
    22.40 Capital transfer to general fund..         -40
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         802       1,010       1,035
    23.95 Total new obligations.............        -738        -946        -971
    24.40 Unobligated balance carried
            forward, end of year............          64          64          64
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          13
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         804         946         971
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          10
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         814         946         971
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         827         946         971
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         250         237         237
    73.10 Total new obligations.............         738         946         971
    73.20 Total outlays (gross).............        -741        -946        -971
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -10
    74.40 Obligated balance, end of year....         237         237         237
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         741         946         971
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Circulating coinage.........        -206        -254        -262
    88.40       Commemorative quarters......        -194        -247        -259
    88.40       Numismatic and investment
                  products..................        -404        -445        -450
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -804        -946        -971
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          13
    90.00 Outlays...........................         -63
    ---------------------------------------------------------------------------

        The United States Mint manufactures coins, sells numismatic and
    investment products, and provides for security and asset protection.
    Public Law 104-52, dated November 19, 1995, enacted 5136, of Subchapter
    III of chapter 51 of subtitle IV of title 31, United States Code
    established the United States Mint Public Enterprise Fund (the Fund).
    The Fund encompasses the previous Salaries and Expenses, Coinage Profit
    Fund, Coinage Metal Fund, and the Numismatic Public Enterprise Fund. The
    Mint submits annual audited business-type financial statements to the
    Secretary of the Treasury and to Congress in support of the operations
    of the revolving fund.

        The operations of the Mint are divided into three major activities:
    Circulating Coinage; Numismatic and Investment Products; and Protection.
    The Mint is credited with receipts from its circulating coinage
    operations, equal to the full cost of producing and distributing coins
    that are put into circulation, including depreciation of the Mint's
    plant and equipment on the basis of current replacement value. From
    that, the Mint pays its cost of operations, which includes the costs of
    production and distribution. The difference between the face value of
    the coins and these costs are profit, which is deposited as seigniorage
    to the general fund. In 2002, the Mint transferred $1,030 million to the
    general fund. Any seigniorage used to finance the Mint's capital
    acquisitions is recorded as budget authority in the year that funds are
    obligated for this purpose, and as receipts over the life of the asset.

        Circulating Coinage.--This activity funds the manufacture of
    circulating coins for sale to the Federal Reserve System as determined
    by public demand. In 2004, this activity will manufacture 13.8 billion
    coins for sale to the Federal Reserve System. In 1996, with the merger
    of the former Coinage Metal Fund into the Mint Public Enterprise Fund,
    the Mint began including the cost of metal in the Circulating Coinage
    activity.

        Numismatic and Investment Products.--This activity funds the
    manufacture of numismatic and bullion coins, medals, and other products
    for sale to collectors and the general public. These coins include
    annual recurring programs such as proof and uncirculated sets, silver
    proof coins, the American Eagle gold and silver bullion uncirculated and
    proof coins, American Eagle platinum coins, and national and historic
    medals. The activity also includes nonrecurring programs for coins and
    medals which are legislated to commemorate specific events or
    individuals. In 2004, this activity will fund the Thomas A. Edison
    Commemorative Coin Program and the Lewis and Clark Expedition
    Commemorative Coin Program. In addition, the Fifty States Commemorative
    Coin Program Act authorized, beginning in 1999, the issuance of quarters
    for sale to the public and to the Federal Reserve System honoring each
    of the 50 states with a design emblematic of that state. These quarters
    will be issued in the order of each state's admission to the Union. The
    Mint will produce five different state quarter designs each year
    resulting in a 10-year program. All coins produced for this program are
    considered to be numismatic products (Public Law 105-124).

    [[Page 791]]

        Protection.--This activity funds protection of the Government's
    stock of gold and silver bullion, coins, Mint employees and visitors,
    plant facilities and equipment, and all other Mint property against
    abuse, theft, damage, disorders, and all other unsafe or illegal
    practices by utilizing police officers and modern protective devices.

                                         2002 actual  2003 est.   2004 est.

    Lost Time Accident Rate.............        2.24        1.44        1.24
    Workforce Climate**.................         N/A         TBD         TBD
    Cycle Time..........................         112         150         128
    Inventory Turnover..................        1.59         2.4         3.3
    Machine Availability................         52%         51%         57%
    Yield...............................         86%         96%         97%
    Conversion Cost per 1000 Coin
    Equivalents.........................       $8.69      $10.25       $9.75
    SG&A Costs as a % of Revenue (excl.
    Bullion)............................       12.7%        7.7%        7.7%
    Customer Satisfaction Index.........         51%         90%         90%
    Threat Index........................           1           0           0
        **The United States Mint will begin collecting new data in January 2003.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4159-0-3-803    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,120            802         1,010          1,035
    0102  Expense...........................      -1,053           -738          -946           -971
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............          67             64            64             64
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   20-4159-0-3-803    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         279            301           480            550
            Investments in US securities:
    1106      Receivables, net..............           7             17             6              6
    1107      Advances and prepayments......           7              5             7              7
          Other Federal assets:

    1802    Inventories and related
              properties....................         468            336           275            201
    1803    Property, plant and equipment,
              net...........................         327            314           376            398
    1901    Other assets....................           5             13             5              5
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,093            986         1,149          1,167
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................         160            167           179            182
          Non-Federal liabilities:

    2201    Accounts payable................          28             27             7              7
    2207    Other...........................          62             60            62             65
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         250            254           248            254
        NET POSITION:
    3300  Cumulative results of operations..         843            732           901            913
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         843            732           901            913
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,093            986         1,149          1,167
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4159-0-3-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         113         135         141
    11.3    Other than full-time permanent..           1
    11.5    Other personnel compensation....          15          12          12
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         129         147         153
    12.1  Civilian personnel benefits.......          37          39          40
    13.0  Benefits for former personnel.....           3           1           1
    21.0  Travel and transportation of
            persons.........................           3           3           4
    22.0  Transportation of things..........          27          26          27
    23.1  Rental payments to GSA............           1           1
    23.2  Rental payments to others.........          18          18          17
    23.3  Communications, utilities, and
            miscellanoues charges...........          12          15          18
    24.0  Printing and reproduction.........           2           8           8
    25.2  Other services....................          85         124         131
    26.0  Supplies and materials............         367         511         512
    31.0  Equipment.........................          30          42          53
    32.0  Land and structures...............          24          11           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         738         946         971
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-4159-0-3-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,428       2,467       2,610
    ---------------------------------------------------------------------------

                            BUREAU OF THE PUBLIC DEBT

                                  Federal Funds

    General and special funds:

                          Administering the Public Debt

        For necessary expenses connected with any public-debt issues of the
    United States, $178,098,000, of which not to exceed $2,500 shall be
    available for official reception and representation expenses, and of
    which not to exceed $2,000,000 shall remain available until expended for
    systems modernization: Provided, That the sum appropriated herein from
    the General Fund for fiscal year 2004 shall be reduced by not more than
    $4,400,000 as definitive security issue fees and Treasury Direct
    Investor Account Maintenance fees are collected, so as to result in a
    final fiscal year 2004 appropriation from the General Fund estimated at
    $173,698,000. In addition, $40,000, to be derived from the Oil Spill
    Liability Trust Fund, to reimburse the Bureau for administrative and
    personnel expenses for financial management of the Fund, as authorized
    by section 1012 of Public Law 101-380.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0560-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Savings and retirement
              securities....................         135         137         127
    00.02   Marketable and special
              securities....................          50          54          47
    00.03   Reimbursements to Federal
              Reserve Banks.................         135         133         131
    09.01 Reimbursable program..............           8          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         328         334         315
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           5           5
    22.00 New budget authority (gross)......         328         334         315
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         336         339         320
    23.95 Total new obligations.............        -328        -334        -315
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    24.40 Unobligated balance carried
            forward, end of year............           5           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         188         191         174
          Mandatory:

    60.00   Appropriation...................         131         133         131
          Spending authority from offsetting
              collections:

            Discretionary:
              Offsetting collections (cash):
    68.00       Offsetting collections
                  (cash)....................           5           6           6
    68.00       Offsetting collections (user
                  fees).....................           3           4           4
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           9          10          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         328         334         315
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          82          86          90
    73.10 Total new obligations.............         328         334         315
    73.20 Total outlays (gross).............        -322        -330        -317
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1

    [[Page 792]]

    74.40 Obligated balance, end of year....          86          90          88

    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         173         178         163
    86.93 Outlays from discretionary
            balances........................          19          22          23
    86.97 Outlays from new mandatory
            authority.......................          66          98         100
    86.98 Outlays from mandatory balances...          64          32          31
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         322         330         317

    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -5          -6          -6
    88.40     Non-Federal sources...........          -3          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -8         -10         -10
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1

    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         319         324         305
    90.00 Outlays...........................         314         320         307

    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           8           9           9
    99.01 Outlays...........................           8           9           9
    ---------------------------------------------------------------------------

        This appropriation provides funds for the conduct of all public debt
    operations and the promotion of the sale of U.S. savings-type
    securities.

        Processing and accounting for:

        Savings securities.--This activity involves the issuance, servicing,
    and retirement of savings bonds and notes and retirement-type
    securities, including: (1) the maintenance and servicing of individual
    accounts of owners of series H and HH bonds and the authorization of
    interest payments; and (2) the maintenance of accounting control over
    financial transactions, securities transactions and accountability, and
    interest cost. These functions are performed directly by the Bureau of
    the Public Debt, by the Federal Reserve Banks as fiscal agents of the
    United States, and by the qualified agents which issue and redeem
    savings bonds and notes.

        The 2004 Budget does not seek funding for Public Debt to market and
    advertise savings securities.

                                         2002 actual  2003 est.   2004 est.
    Provide accurate and timely public
        debt accounting information:
      Receive unqualified audit opinions
        on the public debt outstanding..         n/a         n/aUnqualified
                                                                     Opinion
      Number of Savings Securities
        Redemptions (000)...............      41,410      42,000      42,000
      Number of Savings Securities
        Issued (000)....................      44,001      52,500      52,500
    Provide quality service to
        purchasers of savings bonds:
      Percent over-the-counter issued
        within three weeks..............      99.93%      99.95%      99.95%
      Percent of customer service
        transactions within three weeks.         95%         90%         n/a
      Percent of customer service
        transactions within 13 business
        days............................         n/a         n/a         90%
      Percent of customers rating their
        overall satisfaction as good or
        excellent.......................         n/a         n/a         90%
    Maintain a high quality workforce:
      Percent of employees rating the
        job satisfaction as satisfied or
        better..........................         n/a         n/a         70%

        Marketable and special securities.--This activity involves all
    securities of the United States, other than savings and retirement
    securities, including securities of Government corporations for which
    the Bureau of the Public Debt provides services. Functions performed
    relate to the issuance, servicing, and retirement of these securities,
    both directly by the Bureau and through the Federal Reserve Banks, as
    fiscal agents, including: (1) The maintenance and servicing of
    individual accounts of owners of registered securities and book-entry
    Treasury bills; (2) the authorization of interest and principal
    payments; and (3) the maintenance of accounting control over financial
    transactions, securities transactions and accountability, and interest
    cost.

                                         2002 actual  2003 est.   2004 est.
    Provide accurate and timely public
        debt accounting information:
      Receive unqualified audit opinions
        on the public debt outstanding..         n/a         n/aUnqualified
                                                                     Opinion
    Meet the borrowing needs of the
        Federal Government:
      Percent completed within one hour.         n/a         n/a         n/a
      Percent completed within 25
        minutes.........................         99%         n/a         n/a
      Percent completed within six
        minutes.........................         n/a         80%         n/a
      Percent completed within 2 minutes
        +/- 30 seconds..................         n/a         n/a         95%
    Quality service to investors:
      Percent of Treasury Direct (TD)
        transactions within 3 weeks.....         97%         90%         90%
      Percent of TD payments timely.....        100%        100%         n/a
      Percent of TD payments accurately.        100%        100%         n/a
      Percent of TD payments timely and
        accurately......................         n/a         n/a        100%
      Percent Commercial Book Entry
        payments accurately and timely..        100%        100%        100%
      Process Government Securities
        Investment Program transactions
        timely..........................        100%        100%         n/a
      Process Government Securities
        Investment Program transactions
        accurately......................         99%         99%         n/a
      Percent of Federal Investment
        Program transactions timely and
        accurately......................         n/a         n/a        100%
      Percent of customers rating their
        overall satisfaction as good or
        excellent.......................         n/a         n/a         90%
    Maintain a high quality workforce:
      Percent of employees rating the
        job satisfaction as satisfied or
        better..........................         n/a         n/a         70%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0560-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          70          76          66
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          74          80          70
    12.1    Civilian personnel benefits.....          18          18          16
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.1    Rental payments to GSA..........           6           6           5
    23.3    Communications, utilities, and
              miscellaneous charges.........          17          18          17
    24.0    Printing and reproduction.......           3           6           4
    25.2    Other services..................          26          35          33
    25.3    Other purchases of goods and
              services from Government
              accounts......................         161         147         146
    25.7    Operation and maintenance of
              equipment.....................           3           2           2
    26.0    Supplies and materials..........           2           3           3
    31.0    Equipment.......................           7           7           7
                                               ---------   ---------  ----------
    99.0      Direct obligations............         319         324         305
    99.0  Reimbursable obligations..........           8          10          10
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         328         334         315
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0560-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,453       1,478       1,333
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           5           5           5
    ---------------------------------------------------------------------------

    [[Page 793]]

                    Payment of Government Losses in Shipment

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-1710-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                       2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................                       2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1
    22.00 New budget authority (gross)......           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           2
    23.95 Total new obligations.............                      -2
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                       2
    73.20 Total outlays (gross).............                      -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1
    90.00 Outlays...........................                       1
    ---------------------------------------------------------------------------

        This account was created as self-insurance to cover losses in
    shipment of Government property such as coins, currency, securities,
    certain losses incurred by the Postal Service, and losses in connection
    with the redemption of savings bonds. Approximately 150 claims are paid
    annually.

                            INTERNAL REVENUE SERVICE

        The mission of the Internal Revenue Service is to provide America's
    taxpayers top quality service by helping them understand and meet their
    tax responsibilities and by applying the tax law with integrity and
    fairness to all.

        To achieve this mission, the Service has established three strategic
    goals. In order to achieve the first goal ``Service to Each Taxpayer,''
    the IRS will make filing easier, provide first quality service to each
    taxpayer needing help with his or her return or account, provide prompt,
    professional, helpful treatment to taxpayers in cases where additional
    taxes may be due, and improve taxpayer access to toll-free telephone
    assistance. Second, to achieve the goal of ``Service to All Taxpayers,''
    the IRS will increase fairness of compliance, and increase overall
    compliance. The Service will meet its third goal ``Productivity Through
    a Quality Work Environment,'' by increasing employee job satisfaction
    and productivity while the economy grows and service improves.

        Ensuring Fair Compliance: The IRS is shifting enforcement resources
    from lower income individual and small corporate returns to focus on
    higher income individual returns, tax shelters and abusive schemes. In
    addition, the Budget includes a $133 million initiative for 1,700 staff
    to help insure that compliance is enforced fairly for all taxpayers.

        Reengineering of the Collection Process: The IRS goal is to collect
    all unpaid tax assessments that can be reasonably collected while
    protecting taxpayer rights through efficient, least burdensome
    techniques. The key to this goal is to identify taxpayer accounts with a
    high risk of non-payment as early as possible and to intervene
    immediately. To achieve this, the Budget proposes legislation to allow
    the use of contract collection agents. In addition, IRS is completely
    reengineering the collection process using new technology.

        The IRS is changing the way it uses measures to focus attention on
    priorities, assess organizational performance and identify improvement
    opportunities. Management processes and activities are being realigned
    to ensure that they support the mission of the IRS and incorporate the
    principles of a balanced measurement system. Under this new approach,
    the framework for measuring organizational performance is aligned with
    its strategic goals and balances the Service's focus across three major
    areas: business results, customer satisfaction, and employee
    satisfaction, with business results being comprised of measures of
    quality and quantity.

        The IRS has a long-term plan to raise performance in all dimensions
    of its mission by modernizing and reengineering all basic activities to
    conform to known best practices. In FY 2004, the IRS will improve
    performance primarily through better management and fundamental
    reengineering of business processes, and secondarily by increases in
    resources.

        Business Systems Modernization: The Business Systems Modernization
    (BSM) appropriation provides for revamping business practices and
    acquiring new technology by a formal process of prioritization,
    approval, funding, and evaluation of an investment portfolio.

        Telephone Level of Service: The goal is to provide service
    comparable to the best quality telephone based customer service
    organizations. This is measured by access, quality, and customer
    satisfaction. Success in these areas can be achieved by continuing
    implementation of our long-term plan which includes using technology to
    route telephone calls automatically to employees with specialized
    training.

        Increased e-File/e-Services: Additional electronic filing options
    continue to produce long-term resource savings as we promote e-filed
    returns. Further savings will be realized during migration to an
    information- and transaction-based web site, facilitating more efficient
    communication with stakeholders.

        Health Insurance Tax Credit Administration: The Budget includes a
    new account to fund the administrative costs of administering the new
    Trade Adjustment Assistance health insurance tax credit.

               KEY OPERATIONAL MEASURES AND PERFORMANCE INDICATORS

                                         2002 actual    2003
                                                     Performance
                                                         Plan       2004
                                                                 President's
                                                                    Budget
        Performance goal A: Provide
         assistance to taxpayers in
          understanding their tax
       responsibilities and preparing
              accurate returns

    Performance measures:
       1. Number of taxpayers assisted
        (direct)........................          NA   7,000,000   6,000,000
       2. EP/EO determination letters...     129,680     189,000     128,000
       3. Advanced pricing agreements
        and negotiated positions........         176         140         160
       4. Number of taxpayers assisted
        (indirect)......................          NA  17,000,000  23,000,000
       5. Total Published Guidance Items
        Published.......................         367         330         400
        Performance goal B: Provide
     assistance to taxpayers in filing
     returns, receiving refunds, making
      payments and resolving questions
            about their accounts

    Performance measures:
       1. Individual 1040 returns
        (paper) (thousands).............      84,740      79,000      75,000
       2. Business returns (thousands)
        (paper).........................      37,126      34,000      33,000
       3. Individual 1040 returns
        (thousands) (electronic)........      46,785      54,000      60,000
       4. Total primary electronic
        returns (thousands).............      53,026      61,000      68,000
       5. Total primary paper returns
        filed (thousands)...............     174,892     174,000     176,000
       6. Percent of individual returns
        filed electronically............         36%         41%         44%
       7. Information returns filed
        electronically (thousands)......     367,063         TBD         TBD
       8. Information returns filed
        electronically (%)..............         26%         TBD         TBD
       9. IRS digital daily hits
        (billions)......................        3.11        4.00        4.70
      10. Customer account
        correspondence (millions).......        22.5        22.6        23.2
      11. Teletax and toll-free
        automated calls (thousands).....      63,796      50,000      50,000
      13. Assistor call answered
        (thousands).....................      30,525      33,700      35,000
      14. Toll-free customer
        satisfaction:
          % satisfied...................         56%         56%         57%
          % dissatisfied................          2%          2%          2%
      15. Toll-free level of service....         68%         72%         73%
      16. Toll-free tax law quality.....         81%         tbd         tbd
      17. Toll-free account quality.....         74%         77%         tbd

    [[Page 794]]

      18. Customer Satisfaction Walk-in:
          % satisfied...................         86%         88%         88%
          % dissatisfied................          8%          7%          7%
      19. Total returns prepared
        (thousands).....................       886.8         737         589
      20. Payment received
        electronically (thousands)......      66,029      66,200      67,100
      21. IRS Digital daily downloads
        (millions)......................         438         496         579
      22. Tax law contracts.............   1,843,000   1,900,000   2,000,000
      23. Customer accounts
        correspondence quality..........         75%         79%         TBD
      24. Accounts contacts.............   3,110,000   3,300,000   3,600,000
      25. Toll-free tax law accuracy....          NA         86%         89%
      26. Toll-free accounts accuracy...          NA         91%         93%
    Performance goal C: Bring taxpayers
        into compliance with the law

    Performance measures:
      1. Telephone customer satisfaction
        (ACS)
          % satisfied...................         53%         45%         48%
          % dissatisfied................          3%          7%          6%
      2. ACS closures--Taxpayer
        delinquent accounts                  950,696   1,050,000   1,138,000
      3. ACS closures--Taxpayer
        delinquent investigations            190,411     202,000     220,000
      4. Automated collection system
        (ACS) level of service                   69%         74%         80%
      5. Customer satisfaction--
        collection field
          % satisfied...................         51%         50%         51%
          % dissatisfied................         23%         15%         14%
       6. Field collection--number of
        cases closed (TDA)..............     724,430     714,000     769,000
       7. Field collection--number of
        cases closed TDI................     140,737     113,000     122,000
       8. Field collection quality......         84%         87%         89%
       9. Offers in compromise processed     110,205     100,000     125,000
      10. Automated underreporter
        closures........................   2,922,182   2,900,000   3,100,000
      11. Automated underreporter
        quality.........................         95%         95%         tbd
      12. Correspondence examination
        customer satisfaction
          % satisfied...................         33%         33%         34%
          % dissatisfied................         41%         35%         33%
      13. Correspondence returns
        examined
          EITC..........................     367,799     349,000     364,000
          Non EITC......................     177,447     246,000     227,000
      14. Correspondence examination
        quality.........................         71%         73%         tbd
      15. Field exam customer
        satisfaction
          % satisfied...................         47%         52%         53%
          % dissatisfied................         27%         17%         17%
      16. Individual return examinations
        >$100,000.......................      64,911      62,000      82,000
      17. Individual return examinations
        <$100,000.......................     140,350     121,000     148,000
      18. Field exam quality SBSE
          Quality--Office...............         74%         73%         74%
          Quality--Field................         71%         76%         78%
      19. Field exam quality LMSB
           quality--industry cases......         69%         75%         77%
           quality--coordinated industry
            cases.......................         78%         85%         85%
      20. Business returns examined.....      21,159      18,000      18,000
      21. Corporate cases examined
        (large case)....................         528         486         486
      22. Number of returns closed
        (large case)....................       4,851       4,100       4,100
      23. EP and EO exam customer
        satisfaction
          % satisfied...................         70%         71%         71%
          % dissatisfied................          8%          7%          7%
      24. EP/EO examination closed......      13,549      15,000      20,400
      25. EP and EO examination quality.         75%         79%         82%
      26. Innocent spouse determinations
        made claimant notified..........      60,730      52,000      51,000
      27. Appeals cases closed
        (disposals).....................      68,015      77,000      77,000
      28. Criminal Investigations
        completed.......................       3,201       3,250       3,400
      29. Total Tax court cases
        (beginning inventory and
        receipts).......................      36,141      30,000      31,000
      30. Taxpayer advocate closure to
        receipt ratio...................         n/a        105%        105%
      31. Taxpayer advocate casework
        quality index...................         72%         90%         90%
      32. Total enforcement revenue
        (billions)......................         tbd       $33.9       $34.5
      33. Agency-wide employee
        satisfaction....................         55%         58%         62%
      34. Individual return examinations     205,261     183,000     230,000
      35. Number of tax court receipts..      17,371      18,000      18,500
      36. Taxpayer contact full-time
        equivalent positions (with EITC)      68,243      67,534      69,290
      37. Full-time equivalent positions
        per billion dollars of real
        gross domestic product..........       10.17        9.98         tbd
      38. Employee health and safety--
        lost workday case rate..........       0.98%       0.49%         tbd

                                  Federal Funds

    General and special fund:

                     Processing, Assistance, and Management

        For necessary expenses of the Internal Revenue Service for pre-
    filing taxpayer assistance and education, filing and account services,
    shared services support, general management and administration; and
    services as authorized by 5 U.S.C. 3109, at such rates as may be
    determined by the Commissioner, $4,074,694,000, of which up to
    $3,950,000 shall be for the Tax Counseling for the Elderly Program, of
    which $7,000,000 shall be available for low-income taxpayer clinic
    grants, and of which not to exceed $25,000 shall be for official
    reception and representation expenses.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0912-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           5           6           6
        Receipts:
    02.00 Enrolled agent fee increase.......           2           2           2
    02.20 New installment agreements fees...          54          53          53
    02.21 Restructured installment
            agreements fees.................           8           8           8
    02.22 General user fees, miscellaneous
            retained fees...................           7           7           7
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          71          70          70
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          76          76          76
        Appropriations:
    05.00 Processing, assistance, and
            management......................         -18         -40         -29
    05.01 Tax law enforcement...............         -19          -1         -10
    05.02 Information systems...............         -33         -29         -31
                                               ---------   ---------  ----------
    05.99   Total appropriations............         -70         -70         -70
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           6           6           6
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0912-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Pre-filing taxpayer assistance
              and education.................         568         634         652
    00.02   Filing and account services.....       1,590       1,637       1,668
    00.03   Shared services support.........       1,215       1,203       1,240
    00.04   General management and
              administration................         479         526         544
                                               ---------   ---------  ----------
    01.00   Subtotal, direct programs.......       3,852       4,000       4,104
    09.01 Reimbursable program..............          31          31          31
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,883       4,031       4,135
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          38          30          30
    22.00 New budget authority (gross)......       3,874       4,031       4,135
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,917       4,061       4,165
    23.95 Total new obligations.............      -3,883      -4,031      -4,135
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
    24.40 Unobligated balance carried
            forward, end of year............          30          30          30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,811       3,958       4,075
    50.00   Reappropriation.................          14           2
          Mandatory:

    60.20   Appropriation (special fund)....          18          40          29
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          31          31          31
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,874       4,031       4,135
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         559         447         432
    73.10 Total new obligations.............       3,883       4,031       4,135
    73.20 Total outlays (gross).............      -4,001      -4,046      -4,122
    73.40 Adjustments in expired accounts
            (net)...........................          11
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.40 Obligated balance, end of year....         447         432         445
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       3,423       3,554       3,656
    86.93 Outlays from discretionary
            balances........................         560         452         437
    86.97 Outlays from new mandatory
            authority.......................          18          40          29
                                               ---------   ---------  ----------

    [[Page 795]]

    87.00   Total outlays (gross)...........       4,001       4,046       4,122
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -31         -31         -31
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,843       4,000       4,104
    90.00 Outlays...........................       3,970       4,015       4,091
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................         173         191         204
    99.01 Outlays...........................         173         191         204
    ---------------------------------------------------------------------------

        This appropriation provides for: processing tax returns and related
    documents; assisting taxpayers in the filing of their returns, paying
    taxes that are due, and complying with tax laws; issuing technical
    rulings; revenue accounting, conducting background investigations;
    managing financial resources, rent and utilities.

        Pre-Filing Taxpayer Assistance and Education.--This activity
    includes resources to support services provided before a return is filed
    to assist the taxpayer in filing a correct return. Included in this
    activity are staffing, training and direct support for (1) pre-filing
    services operational management; (2) tax law interpretation and
    published guidance; (3) taxpayer communication and education to research
    customer needs, develop and manage education programs, establish
    partnerships with stakeholder groups, and disseminate tax information to
    taxpayers and the general public; (4) media and publications to supply
    notices and printed and electronic tax materials to taxpayers; (5)
    rulings and agreements to apply the tax law to specific taxpayers in the
    form of pre-filing agreements, determination letters, advance pricing
    agreements and other pre-filing determinations and advice; (6) marketing
    of electronic tax administration products and services; and (7) ensuring
    that taxpayers have an advocate to prevent future problems by
    identifying the underlying causes of taxpayers' problems and to
    participate in the development of systemic and/or procedural remedies.

        Filing and Account Services.--This activity provides resources to
    support services provided to a taxpayer in the process of filing returns
    and paying taxes in addition to issuance of refunds and maintenance of
    taxpayers accounts. Included in this activity are staffing, training and
    direct support for (1) filing and account services operational
    management; (2) submission processing of paper and electronically
    submitted tax returns and supplemental documents which account for tax
    revenues, and issue refunds and tax notices; (3) electronic/
    correspondence assistance to taxpayers to resolve account and notice
    inquires, either electronically or by telephone; (4) face-to-face
    assistance to taxpayers, including return preparation, answering tax
    questions, resolving account and notice inquiries, and supplying forms
    and publications to taxpayers; and (5) processing of information
    documents which enables the Service to match this information with that
    provided by taxpayers on their returns.

        Shared Services Support.--This activity provides staffing, training
    and direct support for: (1) services and supplies to manage IRS
    facilities; (2) human resources programs including recruitment, labor
    and employee relations, workforce planning and evaluation, performance
    management, employee benefits, personnel security and transactional
    processing; (3) procurement; (4) the Servicewide EEO and Diversity
    program; (5) financial services including relocation, travel, imprest
    fund, purchase cards, corporate express and employee clearance; and (6)
    Treasury complaint centers. This activity also provides resources for
    (1) building rent; (2) IRS building services, maintenance space
    alterations, guard services, custodial overtime, utility services, and
    non-information technology equipment; (3) shared support such as
    copiers, postage meters, shredders, courier services, P.O. boxes, etc.;
    and (4) cleaning, maintenance, utilities, security and repair costs of
    delegated buildings.

        General Management and Administration.--This activity provides
    staffing, training and direct support for (1) business unit headquarters
    management activities of strategic planning, communications and liaison,
    finance, human resources, EEO and diversity, and business systems
    planning; (2) national headquarters management and administration of
    policy making and goal setting, leadership and direction for the IRS,
    building partner relationships with key stakeholders (e.g., Congress,
    OMB, etc.); (3) strategic direction Servicewide for communications,
    government liaison and disclosure, legislative affairs and public
    liaison; (4) general legal advice to the IRS on non-tax legal issues
    including procurement, personnel, labor relations, equal employment
    opportunity, fiscal law, tort claims and damages, ethics, and conflict
    of interest; and (5) payments for workmen's compensation benefits and
    unemployment compensation payments.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0912-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       1,431       1,522       1,550
    11.3      Other than full-time permanent         393         361         356
    11.5      Other personnel compensation..         105         124         134
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       1,929       2,007       2,040
    12.1    Civilian personnel benefits.....         527         546         566
    13.0    Benefits for former personnel...          33          32          33
    21.0    Travel and transportation of
              persons.......................          63          68          75
    22.0    Transportation of things........          23          18          19
    23.1    Rental payments to GSA..........         588         595         621
    23.2    Rental payments to others.......           1
    23.3    Communications, utilities, and
              miscellaneous charges.........         133         152         155
    24.0    Printing and reproduction.......          82          85          87
    25.1    Advisory and assistance services          61          17          17
    25.2    Other services..................         125         259         264
    25.3    Other purchases of goods and
              services from Government
              accounts......................          97          11          11
    25.4    Operation and maintenance of
              facilities....................         116         137         140
    25.6    Medical care....................          11           2           2
    25.8    Subsistence and support of
              persons.......................                       3           3
    26.0    Supplies and materials..........          23          24          25
    31.0    Equipment.......................          27          33          35
    41.0    Grants, subsidies, and
              contributions.................          11          11          11
    42.0    Insurance claims and indemnities           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,852       4,000       4,104
    99.0  Reimbursable obligations..........          31          31          31
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,883       4,031       4,135
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0912-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      43,866      43,246      42,407
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         531         546         510
    ---------------------------------------------------------------------------

                               Tax Law Enforcement

        For necessary expenses of the Internal Revenue Service for
    determining and establishing tax liabilities; providing litigation
    support; conducting criminal investigation and enforcement activities;
    securing unfiled tax returns; collecting unpaid accounts; conducting a
    document matching program; resolving taxpayer problems through prompt
    identification, referral and settlement; compiling statistics of income
    and conducting compliance research; purchase (for police-type use, not
    to exceed 850) and hire of passenger motor vehicles (31 U.S.C. 1343(b));
    and services as authorized by 5 U.S.C. 3109, at such rates as may be
    determined by the Commissioner, $3,976,641,000 of which not to

    [[Page 796]]

    exceed $1,000,000 shall remain available until September 30, 2006, for
    research.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0913-0-1-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Compliance services.............       3,481       3,639       3,894
    00.02   Research and statistics of
              income........................          81          90          93
                                               ---------   ---------  ----------
    01.00   Subtotal, Direct program........       3,562       3,729       3,987
    09.01 Reimbursable program..............          99          99          99
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,661       3,828       4,086
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......       3,662       3,829       4,086
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,663       3,830       4,086
    23.95 Total new obligations.............      -3,661      -3,828      -4,086
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,543       3,729       3,977
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -6
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,538       3,729       3,977
    50.00   Reappropriation.................           6
          Mandatory:

    60.20   Appropriation (special fund)....          19           1          10
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          99          99          99
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,662       3,829       4,086
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         299         161         298
    73.10 Total new obligations.............       3,661       3,828       4,086
    73.20 Total outlays (gross).............      -3,804      -3,691      -4,067
    73.40 Adjustments in expired accounts
            (net)...........................           5
    74.40 Obligated balance, end of year....         161         298         317
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       3,485       3,529       3,758
    86.93 Outlays from discretionary
            balances........................         300         161         299
    86.97 Outlays from new mandatory
            authority.......................          19           1          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,804       3,691       4,067
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -99         -99         -99
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,563       3,730       3,987
    90.00 Outlays...........................       3,705       3,592       3,968
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................         244         259         277
    99.01 Outlays...........................         244         259         277
    ---------------------------------------------------------------------------

        This appropriation funds IRS's ability to provide equitable
    application and enforcement of the tax laws, identify possible nonfilers
    for investigations, investigate violations of criminal statutes, and
    supports the Statistics of Income program.

        Compliance Services.--This activity funds services provided to a
    taxpayer after a return is filed to identify and correct possible errors
    or underpayment. Included in this activity are staffing, training and
    support for: (1) compliance services operational management; (2) the
    centralized automated collection system (ACS) and collection by
    correspondence in service centers; (3) field investigations and
    collection efforts associated with delinquent taxpayer and business
    entity liabilities; (4) documents matching; (5) examination of taxpayer
    returns at service centers; (6) field exam to determine corresponding
    tax liabilities; (7) enforcement of criminal statutes related to
    violations of internal revenue laws and other financial crimes; (8)
    processing of reports for current transactions over $10,000; (9) case
    settlement through the appeals process; (10) litigation; and (11)
    taxpayer advocate case processing.

        Research and Statistics of Income.--This activity funds research and
    statistical analysis support for the Service. It provides annual income,
    financial, and tax data from tax returns filed by individuals,
    corporations, and tax-exempt organizations. Likewise it provides
    resources for market-based research to identify compliance issues, for
    conducting tests of treatments to address non-compliance, and for the
    implementation of successful treatments of taxpayer non-compliant
    behavior.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0913-0-1-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       2,462       2,566       2,717
    11.3      Other than full-time permanent         103         110         114
    11.5      Other personnel compensation..          98         109         115
    11.8      Special personal services
                payments....................           6           8           9
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       2,669       2,793       2,955
    12.1    Civilian personnel benefits.....         627         651         714
    21.0    Travel and transportation of
              persons.......................         109         100         113
    22.0    Transportation of things........           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          41          41          42
    24.0    Printing and reproduction.......           1           2           2
    25.1    Advisory and assistance services          24          28          38
    25.2    Other services..................          38          74          82
    25.3    Other purchases of goods and
              services from Government
              accounts......................          20           1           1
    25.4    Operation and maintenance of
              facilities....................           1
    25.5    Research and development
              contracts.....................           2           5           5
    25.7    Operation and maintenance of
              equipment.....................           1           6           6
    25.8    Subsistence and support of
              persons.......................                       3           3
    26.0    Supplies and materials..........          18          19          20
    31.0    Equipment.......................           6
    42.0    Insurance claims and indemnities           1           1           1
    91.0    Unvouchered.....................           2           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,562       3,729       3,987
    99.0  Reimbursable obligations..........          99          99          99
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,661       3,828       4,086
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0913-0-1-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      45,174      45,531      46,656
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         495         700         650
    ---------------------------------------------------------------------------

                 Earned Income Tax Credit Compliance Initiative

        For funding essential earned income tax credit compliance and error
    reduction initiatives $251,167,000, of which not to exceed $10,000,000
    may be used to reimburse the Social Security Administration for the
    costs of implementing section 1090 of the Taxpayer Relief Act of 1997
    (Public Law 105-33).

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

    [[Page 797]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0917-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Earned income tax credit..........         146         146         251
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         146         146         251
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         146         146         251
    23.95 Total new obligations.............        -146        -146        -251
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         146         146         251
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         145         146         251
    50.00   Reappropriation.................           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         146         146         251
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          28          23          22
    73.10 Total new obligations.............         146         146         251
    73.20 Total outlays (gross).............        -151        -147        -230
    74.40 Obligated balance, end of year....          23          22          43
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         123         117         201
    86.93 Outlays from discretionary
            balances........................          28          30          29
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         151         147         230
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         146         146         251
    90.00 Outlays...........................         153         147         230
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           8           8           9
    99.01 Outlays...........................           8           8           9
    ---------------------------------------------------------------------------

        This appropriation provides for expanded customer service and public
    outreach programs, strengthened enforcement activities, and enhanced
    research efforts to reduce overclaims and erroneous filings associated
    with the Earned Income Tax Credit (EITC).

        The budget includes a $100 million initiative to implement an
    integrated approach to enhancing EITC administration. This approach
    recommended by Treasury's EITC Task Force would have claimants provide
    additional information to the IRS to validate eligibility before
    payment. Two principles underlie this approach: (1) the IRS will only
    refund EITC after there is clear information that the EITC filer is
    entitled to the EITC and (2) the IRS will use compliance and other
    available data to determine whether specific groups of claimants can be
    eliminated from certain certification requirements because they pose
    less risk. This approach promises to reduce non-compliance while
    minimizing burden and providing certainty to eligible claimants. A
    significant portion of the FY 2004 request will be used to develop new
    business processes and supporting technology infrastructure. Remaining
    funds will be used to begin the certification proposal with the
    recommendation of the EITC Task Force.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0917-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          79          82         121
    11.3    Other than full-time permanent..          17          14          15
    11.5    Other personnel compensation....           8           7           7
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         104         103         143
    12.1  Civilian personnel benefits.......          27          27          38
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1
    24.0  Printing and reproduction.........           3           3           3
    25.1  Advisory and assistance services..           2           1           1
    25.2  Other services....................           7          10          64
    25.3  Other purchases of goods and
            services from Government
            accounts........................           1
    31.0  Equipment.........................                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         146         146         251
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0917-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,467       2,353       2,994
    ---------------------------------------------------------------------------

                          Collection Contractor Support

                    (Legislation proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0929-4-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Collection Contractor Support.....                                   2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................                                   2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   2
    23.95 Total new obligations.............                                  -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                   2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   2
    73.20 Total outlays (gross).............                                  -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                   2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                   2
    90.00 Outlays...........................                                   2
    ---------------------------------------------------------------------------

        The Budget proposes legislation to allow IRS to employ private
    collection agents (PCAs) to help collect known tax debt and to pay PCA
    fees. Many states and other federal agencies already use private
    collectors, with impressive results. This legislation includes strong
    protections for taxpayer's rights.

                   Health Insurance Tax Credit Administration

        For expenses necessary to implement the health insurance tax credit
    included in the Trade Act of 2002 (P.L. 107-210), $35,000,000, to remain
    available until September 30, 2005.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0928-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Health Care Tax Administration....                      70          35
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................                      70          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      70          35
    23.95 Total new obligations.............                     -70         -35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                      70          35
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  17
    73.10 Total new obligations.............                      70          35

    [[Page 798]]

    73.20 Total outlays (gross).............                     -53         -50
    74.40 Obligated balance, end of year....                      17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      53          32
    86.93 Outlays from discretionary
            balances........................                                  18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      53          50
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      70          35
    90.00 Outlays...........................                      53          50
    ---------------------------------------------------------------------------

        This appropriation provides operating funding to administer the
    advance payment feature of a new Trade Adjustment Assistance health
    insurance tax credit program to assist dislocated workers with their
    health insurance premiums. The tax credit program was enacted by the
    Trade Act of 2002 (P.L. 107-210) and is effective in August of 2003.

                               Information Systems

        For necessary expenses of the Internal Revenue Service for
    information systems and telecommunications support, including
    developmental information systems and operational information systems;
    the hire of passenger motor vehicles (31 U.S.C. 1343(b)); and services
    as authorized by 5 U.S.C. 3109, at such rates as may be determined by
    the Commissioner, $1,670,039,000, of which $200,000,000 shall remain
    available until September 30, 2005.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0919-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Information systems improvement
              programs......................          39          50          50
    00.02   Information services............       1,589       1,611       1,651
                                               ---------   ---------  ----------
    01.00   Subtotal, Direct program........       1,628       1,661       1,701
    09.01 Reimbursable program..............           8           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,636       1,669       1,709
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          18          21          21
    22.00 New budget authority (gross)......       1,605       1,669       1,709
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          34
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,657       1,690       1,730
    23.95 Total new obligations.............      -1,636      -1,669      -1,709
    24.40 Unobligated balance carried
            forward, end of year............          21          21          21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................       1,558       1,632       1,670
    40.00     Appropriation.................          16
    40.73   Reduction pursuant to P.L. 107-
              206...........................         -10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,564       1,632       1,670
          Mandatory:

    60.20   Appropriation (special fund)....          33          29          31
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           8           8           8
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,605       1,669       1,709
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         559         411         363
    73.10 Total new obligations.............       1,636       1,669       1,709
    73.20 Total outlays (gross).............      -1,750      -1,717      -1,759
    73.45 Recoveries of prior year
            obligations.....................         -34
    74.40 Obligated balance, end of year....         411         363         313
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,163       1,313       1,344
    86.93 Outlays from discretionary
            balances........................         554         375         384
    86.97 Outlays from new mandatory
            authority.......................          33          29          31
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,750       1,717       1,759
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -8          -8          -8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,597       1,661       1,701
    90.00 Outlays...........................       1,742       1,709       1,751
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          42          43          46
    99.01 Outlays...........................          42          43          46
    ---------------------------------------------------------------------------

        This appropriation provides for Servicewide information systems
    operations and maintenance, and investments to enhance or develop
    business applications for the IRS Business Units. The appropriation
    includes staffing, telecommunications, hardware and software (including
    commercial-off-the-shelf), and contractual services.

        Information services.--This activity provides the salaries,
    benefits, and related costs to manage, maintain, and operate the
    information systems that support tax administration. The Service's
    business activities rely on these information systems to process tax and
    information returns, account for tax revenues collected, send bills for
    taxes owed, issue refunds, assist in the selection of tax returns for
    audit, and provide telecommunications services for all business
    activities including the public's toll free access to tax information.
    These systems are located in a variety of sites including the
    Martinsburg, Tennessee and Detroit Computing Centers; Service Centers;
    and in other field office operations. Staffing in this activity develops
    and maintains the millions of lines of programming code supporting all
    aspects of tax-processing; as well as operating and administering the
    Service's hardware infrastructure of mainframes, minicomputers, personal
    computers, networks, and a variety of management information systems.

        Information systems improvement programs.--This activity funds
    improvements or enhancements to business applications. These investments
    conform to the modernized IRS architecture. These projects differ in
    scope from those funded by the Business Systems Modernization Program,
    which addresses major common tax administration systems.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0919-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         542         556         580
    11.3      Other than full-time permanent           5           3           3
    11.5      Other personnel compensation..          21          23          24
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         568         582         607
    12.1    Civilian personnel benefits.....         120         125         128
    21.0    Travel and transportation of
              persons.......................          20          22          22
    23.3    Communications, utilities, and
              miscellaneous charges.........         211         210         208
    25.1    Advisory and assistance services           2           4           4
    25.2    Other services..................         337         343         351
    25.3    Other purchases of goods and
              services from Government
              accounts......................           9          13          13
    25.4    Operation and maintenance of
              facilities....................           3           1           1
    25.7    Operation and maintenance of
              equipment.....................          85          93          84
    26.0    Supplies and materials..........          15          17          17
    31.0    Equipment.......................         258         251         266
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,628       1,661       1,701
    99.0  Reimbursable obligations..........           8           8           8
                                               ---------   ---------  ----------

    [[Page 799]]

    99.9    Total new obligations...........       1,636       1,669       1,709
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-0919-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       7,674       8,025       7,986
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          10          10          10
    ---------------------------------------------------------------------------

                         Business Systems Modernization

        For necessary expenses of the Internal Revenue Service,
    $429,000,000, to remain available until September 30, 2006, for the
    capital asset acquisition of information technology systems, including
    management and related contractual costs of said acquisitions, including
    contractual costs associated with operations authorized by 5 U.S.C.
    3109: Provided, That none of these funds may be obligated until the
    Internal Revenue Service submits to the Committees on Appropriations, a
    plan for expenditure that: (1) meets the capital planning and investment
    control review requirements established by the Office of Management and
    Budget, including Circular A-11 part 3; (2) complies with the Internal
    Revenue Service's enterprise architecture, including the modernization
    blueprint; (3) conforms with the Internal Revenue Service's enterprise
    life cycle methodology; (4) is approved by the Internal Revenue Service,
    the Department of the Treasury, and the Office of Management and Budget;
    (5) has been reviewed by the General Accounting Office; and (6) complies
    with the acquisition rules, requirements, guidelines, and systems
    acquisition management practices of the Federal Government.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0921-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Information technology investments         320         450         500
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         320         450         500
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          77         171         101
    22.00 New budget authority (gross)......         406         380         429
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         491         551         530
    23.95 Total new obligations.............        -320        -450        -500
    24.40 Unobligated balance carried
            forward, end of year............         171         101          30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         392         380         429
    50.00   Reappropriation.................          14
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         406         380         429
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         192         183         205
    73.10 Total new obligations.............         320         450         500
    73.20 Total outlays (gross).............        -321        -428        -444
    73.45 Recoveries of prior year
            obligations.....................          -8
    74.40 Obligated balance, end of year....         183         205         261
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         176         228         257
    86.93 Outlays from discretionary
            balances........................         145         200         187
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         321         428         444
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         406         380         429
    90.00 Outlays...........................         321         428         444
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0921-0-1-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         271         450         500
    25.7  Operation and maintenance of
            equipment.......................           7
    31.0  Equipment.........................          42
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         320         450         500
    ---------------------------------------------------------------------------

        This appropriation provides for revamping business practices and
    acquiring new technology. The agency is using a formal methodology to
    prioritize, approve, fund, and evaluate its portfolio of business
    systems modernization investments. This methodology enforces a
    documented, repeatable, and measurable process for managing investments
    throughout their life cycle. Investment decisions are approved by the
    IRS Core Business System Executive Steering Committee, chaired by the
    Commissioner.

          Payment Where Earned Income Credit Exceeds Liability for Tax

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0906-0-1-609      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........      27,826      30,606      31,375
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................      27,826      30,606      31,375
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      27,826      30,606      31,375
    23.95 Total new obligations.............     -27,826     -30,606     -31,375
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................      27,826      30,606      31,375
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............      27,826      30,606      31,375
    73.20 Total outlays (gross).............     -27,826     -30,606     -31,375
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      27,826      30,606      31,375
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      27,826      30,606      31,375
    90.00 Outlays...........................      27,826      30,606      31,375
    ---------------------------------------------------------------------------

        As provided by law, there will be instances wherein the earned
    income tax credit will exceed the amount of tax liability owed through
    the individual income tax system, resulting in an additional payment to
    the tax filer. The Earned Income Credit was originally authorized by the
    Tax Reduction Act of 1975 (Public Law 94-12) and made permanent by the
    Revenue Adjustment Act of 1978 (Public Law 95-600). The Tax Reform Act
    of 1986 and the Omnibus Budget Reconciliation Acts of 1990 and 1993 have
    increased the credit amount and expanded the eligibility for earned
    income credit.

        The budget proposes to permanently extend the EITC provisions in the
    Economic Growth and Tax Relief Reconciliation Act of 2001, which sunset
    on December 31, 2010. These provisions reduce EITC-related marriage
    penalties, simplify certain eligibility criteria for the credit, and
    allows the IRS to use more cost-efficient procedures to deny
    questionable EITC claims.

    [[Page 800]]

    Payment Where Alternative to Failing School Credit Exceeds Liability for
                                       Tax

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0927-4-1-501      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                                 213
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 44.0)...................                                 213
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 213
    23.95 Total new obligations.............                                -213
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                 213
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 213
    73.20 Total outlays (gross).............                                -213
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 213
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 213
    90.00 Outlays...........................                                 213
    ---------------------------------------------------------------------------

              Payment Where Child Credit Exceeds Liability for Tax

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0922-0-1-609      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........       5,060       5,870       5,863
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       5,060       5,870       5,863
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       5,060       5,870       5,863
    23.95 Total new obligations.............      -5,060      -5,870      -5,863
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       5,060       5,870       5,863
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............       5,060       5,870       5,863
    73.20 Total outlays (gross).............      -5,060      -5,870      -5,863
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       5,060       5,870       5,863
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       5,060       5,870       5,863
    90.00 Outlays...........................       5,060       5,870       5,863
    ---------------------------------------------------------------------------

        As provided by law, there will be instances wherein the child credit
    will exceed the amount of tax liability owed through the individual
    income tax system, resulting in an additional payment to the tax filer.
    The child credit was originally authorized by the Taxpayer Relief Act of
    1997 (Public Law 105-34).

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................       5,060       5,870       5,863
      Outlays...........................       5,060       5,870       5,863
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                     300       1,074
      Outlays...........................                     300       1,074
                                        ------------------------------------
    Total:
      Budget Authority..................       5,060       6,170       6,937
      Outlays...........................       5,060       6,170       6,937
                                        ====================================

              Payment Where Child Credit Exceeds Liability for Tax

                     (Legislative proposal subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0922-4-1-609      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                     300       1,074
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                     300       1,074
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     300       1,074
    23.95 Total new obligations.............                    -300      -1,074
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                     300       1,074
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                     300       1,074
    73.20 Total outlays (gross).............                    -300      -1,074
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     300       1,074
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     300       1,074
    90.00 Outlays...........................                     300       1,074
    ---------------------------------------------------------------------------

        The President's Growth Package proposes to permanently extend the
    Child Tax Credit provisions in the Economic Growth and Tax Relief
    Reconciliation Act of 2001, which sunset on December 31, 2010. These
    provisions increase the amount of the child tax credit to $1,000, and
    make the credit partially refundable for many families with earned
    income.

           Payment Where Health Care Credit Exceeds Liability for Tax

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0923-0-1-551      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........                       4         212
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                       4         212
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                       4         212
    23.95 Total new obligations.............                      -4        -212
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                       4         212
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                       4         212
    73.20 Total outlays (gross).............                      -4        -212
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       4         212
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       4         212
    90.00 Outlays...........................                       4         212
    ---------------------------------------------------------------------------

        The Trade Act of 2002 established an advanceable, refundable tax
    credit for 65 percent of cost of qualified insurance. This credit is
    available to recipients of trade adjustment as

    [[Page 801]]

    sistance (TAA) and Pension Benefit Guaranty Corporation pension benefits
    who are aged 55-64 and have lost their employer health benefits.

        To help lower income families purchase private health insurance, the
    budget includes a proposed new refundable tax credit for health
    insurance purchased by individuals and families who are neither covered
    by employer-sponsored insurance nor enrolled in public programs. This
    schedule reflects the effects of this proposed credit in cases where the
    credit exceeds the individual tax liability resulting in payment to the
    tax filer.

                Refunding Internal Revenue Collections, Interest

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0904-0-1-908      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........       4,208       3,219       2,689
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................       4,208       3,219       2,689
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       4,208       3,219       2,689
    23.95 Total new obligations.............      -4,208      -3,219      -2,689
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       4,208       3,219       2,689
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............       4,208       3,219       2,689
    73.20 Total outlays (gross).............      -4,208      -3,219      -2,689
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       4,208       3,219       2,689
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,208       3,219       2,689
    90.00 Outlays...........................       4,208       3,219       2,689
    ---------------------------------------------------------------------------

        Under certain circumstances, as provided in 26 U.S.C. 6611, interest
    is paid on Internal Revenue collections that must be refunded. The Tax
    Equity and Fiscal Responsibility Act of 1982 (Public Law 97-248)
    provides for daily compounding of interest. Under the Tax Reform Act of
    1986 (Public Law 99-514), interest paid on Internal Revenue collections
    will equal the Federal short-term rate plus two percentage points, such
    rate to be adjusted quarterly.

           Gifts to the United States for Reduction of the Public Debt

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5080-0-2-808      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....           1           1           1
    60.47   Portion applied to repay debt...          -1          -1          -1
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        31 U.S.C. 3113 authorizes the Secretary of the Treasury to accept
    conditional gifts to the United States for the purpose of reducing the
    public debt.

                               Informant Payments

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5433-0-2-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............                                   4
        Receipts:
    02.40 Underpayment and fraud collection.           9           7           7
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           9           7          11
        Appropriations:
    05.00 Informant payments................          -9          -3          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............                       4           8
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-5433-0-2-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Informant Payments................           9           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 91.0)...................           9           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9           3           3
    23.95 Total new obligations.............          -9          -3          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....           9           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           9           3           3
    73.20 Total outlays (gross).............          -9          -3          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           9           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9           3           3
    90.00 Outlays...........................           9           3           3
    ---------------------------------------------------------------------------

        As provided by law (26 U.S.C. 7623), the Treasury Secretary may make
    payments to individuals resulting from information given that leads to
    the collection of Internal Revenue taxes. The Taxpayer Bill of Rights of
    1996 (Public Law 104-168) provides for payments of such sums to
    individuals from the proceeds of amounts (other than interest) collected
    by reason of the information provided, and any amount collected shall be
    available for such payments. This information must lead to the detection
    of underpayments of taxes, or detection and bringing to trial and
    punishment persons guilty of violating the internal revenue laws (in
    cases where such expenses are not otherwise provided for by law).

    Public enterprise funds:

                         Federal Tax Lien Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4413-0-3-803      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............           7           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................           7           6           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           5           4
    22.00 New budget authority (gross)......           5           6           6
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          12          11          10
    23.95 Total new obligations.............          -7          -6          -6
    24.40 Unobligated balance carried
            forward, end of year............           5           4           4
    ----------------------------------------------------------------------------

    [[Page 802]]

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           5           6           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           7           6           6
    73.20 Total outlays (gross).............          -6          -4          -6
    73.45 Recoveries of prior year
            obligations.....................          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           6           4           6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -5          -6          -6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1          -2
    ---------------------------------------------------------------------------

        This revolving fund was established pursuant to section 112(a) of
    the Federal Tax Lien Act of 1966, to serve as the source of financing
    the redemption of real property by the United States. During the process
    of collecting unpaid taxes, the government places a tax lien on real
    estate in order to protect the government's interest. Situations arise
    where property of this nature is collateral for other indebtedness and
    the tax lien is subordinate to the original indebtedness. In this
    circumstance, it is often to the government's interest to purchase the
    property during the foreclosure sale. The advantage arises when the
    property is worth substantially more than the first lienholder's equity
    but is being sold for an amount that barely covers that equity, thereby
    leaving no proceeds to apply against delinquent taxes. Under these
    circumstances, if the Government buys the property and subsequently puts
    it up for sale under more advantageous conditions, it is possible to
    realize sufficient profit on the transaction to fully or partially
    collect the amount of taxes due. The revolving fund is reimbursed from
    the proceeds of the sale in an amount equal to the amount expended from
    the fund for the redemption. The balance of the proceeds are applied
    against the amount of the tax, interest, penalties, and additions
    thereto, and for the costs of sale. The remainder, if any, would revert
    to the parties legally entitled to it.

        As directed by the Internal Revenue Service Restructuring and Reform
    Act of 1998 (section 7802(d) 26 U.S.C.), the Internal Revenue Service
    Oversight Board shall annually review and approve a budget request for
    the Internal Revenue Service. The Oversight Board's approved request
    shall be submitted to the President by the Secretary without revision,
    and the President shall submit the request, without revision, to
    Congress together with the President's Budget request for the Internal
    Revenue Service. The 2004 Oversight Board budget recommendation for the
    Internal Revenue Service is $10,724 million.

               Administrative Provisions--Internal Revenue Service

        Sec. 101. Not to exceed 5 percent of any appropriation made
    available in this Act to the Internal Revenue Service may be transferred
    to any other Internal Revenue Service appropriation fifteen days after
    notification of the Committees on Appropriations.
        Sec. 102. The Internal Revenue Service shall maintain a training
    program to ensure that Internal Revenue Service employees are trained in
    taxpayers' rights, in dealing courteously with the taxpayers, and in
    cross-cultural relations.
        Sec. 103. The Internal Revenue Service shall institute and enforce
    policies and procedures that will safeguard the confidentiality of
    taxpayer information.
        Sec. 104. Funds made available by this or any other Act to the
    Internal Revenue Service shall be available for improved facilities and
    increased manpower to provide sufficient and effective 1-800 help line
    service for taxpayers. The Commissioner shall continue to make the
    improvement of the Internal Revenue Service 1-800 help line service a
    priority and allocate resources necessary to increase phone lines and
    staff to improve the Internal Revenue Service 1-800 help line service.

                           COMPTROLLER OF THE CURRENCY

                                   Trust Funds

                                Assessment Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-8413-0-8-373      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Assessment funds, offsetting
            collections.....................         449         456         476
        Appropriations:
    05.00 Assessment funds..................        -449        -456        -476
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-8413-0-8-373      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Bank supervision..................         417         439         459
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         417         439         459
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         281         313         330
    22.00 New budget authority (gross)......         449         456         476
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         730         769         806
    23.95 Total new obligations.............        -417        -439        -459
    24.40 Unobligated balance carried
            forward, end of year............         313         330         347
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         449         456         476
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          63          67          71
    73.10 Total new obligations.............         417         439         459
    73.20 Total outlays (gross).............        -413        -435        -454
    74.40 Obligated balance, end of year....          67          71          76
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         413         435         454
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities         -17         -16         -17
    88.40     Non-Federal sources:
                Assessments.................        -432        -440        -459
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -449        -456        -476
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -36         -21         -22
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         345         378         403
    92.02 Total investments, end of year:
            Federal securities: Par value...         378         403         418
    ---------------------------------------------------------------------------

    [[Page 803]]

        The Office of the Comptroller of the Currency was created for the
    purpose of establishing and regulating a national banking system. The
    National Currency Act of 1863 (12 U.S.C. 1 et seq., 12 Stat. 665)
    rewritten and reenacted as the National Bank Act of 1864, provided for
    the chartering and supervising functions in this connection. The income
    of the bureau is derived principally from assessments paid by national
    banks and interest on investments in U.S. Government securities.

        As the Administrator of National Banks, the Office of the
    Comptroller of the Currency charters new banking institutions only after
    investigation and due consideration of charter applications. Supervision
    of existing national banks is aided by the required submission of
    periodic reports and detailed onsite examinations, which are conducted
    by a staff of approximately 1,900 national bank examiners. At present,
    there are approximately 2,100 national banks and 52 Federal branches
    with total assets of more than $3.8 trillion.

        In addition, the Comptroller considers applications for mergers in
    which the resulting bank will be a national bank and applications from
    banks to establish branches. The Comptroller of the Currency also
    promulgates rules and regulations for the guidance of national banks and
    bank directors.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-8413-0-8-373      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         227         243         256
    11.3    Other than full-time permanent..           5           5           6
    11.5    Other personnel compensation....           2           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         234         250         264
    12.1  Civilian personnel benefits.......          61          65          70
    21.0  Travel and transportation of
            persons.........................          26          27          27
    22.0  Transportation of things..........           1           1           1
    23.2  Rental payments to others.........          26          27          27
    23.3  Communications, utilities, and
            miscellaneous charges...........           9           9           9
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................          42          45          47
    26.0  Supplies and materials............           4           4           4
    31.0  Equipment.........................          12           6           5
    32.0  Land and structures...............           1           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         417         439         459
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-8413-0-8-373      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,792       2,813       2,813
    ---------------------------------------------------------------------------

                          OFFICE OF THRIFT SUPERVISION

                                  Federal Funds

    Public enterprise funds:

                          Office of Thrift Supervision

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4108-0-3-373      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Office of Thrift Supervision......         148         157         161
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         148         157         161
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         122         136         147
    22.00 New budget authority (gross)......         163         168         168
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         285         304         315
    23.95 Total new obligations.............        -148        -157        -161
    24.40 Unobligated balance carried
            forward, end of year............         136         147         154
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         163         168         168
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          27          23          11
    73.10 Total new obligations.............         148         157         161
    73.20 Total outlays (gross).............        -153        -168        -168
    74.40 Obligated balance, end of year....          23          11           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         153         168         168
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3          -3          -3
    88.20     Interest on Federal securities          -2          -5          -5
    88.40     Non-Federal sources...........        -158        -160        -160
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -163        -168        -168
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -10
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         148         158         158
    92.02 Total investments, end of year:
            Federal securities: Par value...         158         158         158
    ---------------------------------------------------------------------------

        The Office of Thrift Supervision (OTS) was created by the Financial
    Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
    1811 note). The OTS assumed the regulatory functions of the Federal Home
    Loan Bank Board dissolved by the same act.

        The OTS charters, regulates and examines Federal thrifts, all of
    which are insured by the Savings Association Insurance Fund. In
    addition, the OTS cooperates in the examination and supervision of
    State-chartered thrifts insured by the Savings Association Insurance
    Fund. The OTS sets capital standards for Federal and State thrifts and
    reviews applications of State-chartered thrifts for conversion to
    Federal thrifts. It also reviews applications for establishment of
    branch offices.

        Income of the bureau is derived principally from assessments on
    thrifts, examination fees and interest on investments in U.S. Government
    obligations. As of September 30, 2002, OTS oversees 983 thrifts with
    total assets of $987 billion.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-4108-0-3-373      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          88          85          88
    11.5    Other personnel compensation....           1
    11.8    Special personal services
              payments......................           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          90          86          89
    12.1  Civilian personnel benefits.......          26          33          33
    21.0  Travel and transportation of
            persons.........................          10           9          10
    23.2  Rental payments to others.........           6           7           7
    23.3  Communications, utilities, and
            miscellaneous charges...........           3           4           4
    25.2  Other services....................          10          13          13
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           2           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         148         157         161
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 20-4108-0-3-373      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,087         959         959
    ---------------------------------------------------------------------------

    [[Page 804]]

                           INTEREST ON THE PUBLIC DEBT

                                  Federal Funds

    General and special funds:

                  Interest on Treasury Debt Securities (Gross)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0550-0-1-901      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest on Treasury Securities...     332,537     328,292     352,765
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................     332,537     328,292     352,765
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......     332,537     328,292     352,765
    23.95 Total new obligations.............    -332,537    -328,292    -352,765
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................     332,537     328,292     352,765
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............     332,537     328,292     352,765
    73.20 Total outlays (gross).............    -332,537    -328,292    -352,765
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................     332,537     328,292     352,765
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................     332,537     328,292     352,765
    90.00 Outlays...........................     332,537     328,292     352,765
    ---------------------------------------------------------------------------

        Such amounts are appropriated as may be necessary to pay the
    interest each year on the public debt (31 U.S.C. 1305, 3123). Interest
    on Government account series securities is generally computed on a cash
    basis. Interest is generally computed on an accrual basis on all other
    types of securities.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................     332,537     328,292     352,765
      Outlays...........................     332,537     328,292     352,765
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                      24        -430
      Outlays...........................                      24        -430
                                        ------------------------------------
    Total:
      Budget Authority..................     332,537     328,316     352,335
      Outlays...........................     332,537     328,316     352,335
                                        ====================================

                  Interest on Treasury Debt Securities (Gross)

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 20-0550-2-1-901      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest on Treasury Securities...                      24        -430
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................                      24        -430
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      24        -430
    23.95 Total new obligations.............                     -24         430
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                      24        -430
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                      24        -430
    73.20 Total outlays (gross).............                     -24         430
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                      24        -430
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      24        -430
    90.00 Outlays...........................                      24        -430
    ---------------------------------------------------------------------------

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    Governmental receipts:
      20-015800  Transportation fuels tax:
        Enacted/requested...................         814         869         939
        Legislative proposal, subject to
          PAYGO.............................                                -643
      20-065000  Deposit of earnings,
        Federal Reserve System: Enacted/
        requested...........................      23,683      23,565      27,078
      20-085000  Registration, filing, and
        transaction fees: Enacted/requested.           5           5           5
      20-086100  Charges for expenses,
        settlement of international claims:
        Enacted/requested...................                       1           1
      20-086900  Fees for legal and judicial
        services, not otherwise classified:
        Enacted/requested...................          72          72          72
      20-089100  Miscellaneous fees for
        regulatory and judicial services,
        not otherwise classified: Enacted/
        requested...........................           8           8           8
      20-101000  Fines, penalties, and
        forfeitures, agricultural laws:
        Enacted/requested...................           2           2           2
      20-102000  Fines, penalties, and
        forfeitures, economic stabilization
        laws: Enacted/requested.............           9           9           9
      20-103000  Fines, penalties, and
        forfeitures, immigration and labor
        laws: Enacted/requested.............          72          72          72
      20-104000  Fines, penalties, and
        forfeitures, customs, commerce, and
        antitrust laws: Enacted/requested...         100         100         100
      20-105000  Fines, penalties, and
        forfeitures, narcotic prohibition
        and alcohol laws: Enacted/requested.           2           2           2
      20-106000  Forfeitures of unclaimed
        money and property: Enacted/
        requested...........................          25          36          36
      20-108000  Fines, penalties, and
        forfeitures, Federal coal mine
        health and safety laws: Enacted/
        requested...........................          18          18          18
      20-129900  Gifts to the United States,
        not otherwise classified: Enacted/
        requested...........................           6           1           1
      20-241100  User fees for IRS: Enacted/
        requested...........................          59          66           5
        Legislative proposal, subject to
          PAYGO.............................                                  68
      20-309200  Recovery from highway trust
        fund for refunds of taxes: Enacted/
        requested...........................       1,195         988       1,015
      20-309400  Recovery from airport and
        airway trust fund for refunds of
        taxes: Enacted/requested............          60          47          50
      20-309500  Recovery from leaking
        underground storage tank trust fund
        for refunds of taxes, EPA: Enacted/
        requested...........................           6           5           5
      20-309990  Refunds of moneys
        erroneously received and recovered
        (20X1807): Enacted/requested........        -336        -312        -324
      95-085015  Registration, filing, and
        transaction fees, SEC: Enacted/
        requested...........................           1
      95-109900  Fines, penalties, and
        forfeitures, not otherwise
        classified: Enacted/requested.......         667         399         399
      99-011050  Individual income taxes:
        Enacted/requested...................     858,278     877,144     953,574
        Legislative proposal, subject to
          PAYGO.............................                 -28,158    -103,761
      99-011100  Corporation income and
        excess profits taxes: Enacted/
        requested...........................     148,037     145,799     173,659
        Legislative proposal, subject to
          PAYGO.............................                  -2,613      -4,599
      99-015250  Other Federal fund excise
        taxes: Enacted/requested............        -519         164         106
        Legislative proposal, subject to
          PAYGO.............................                     -16        -264
      99-015300  Estate and gift taxes:
        Enacted/requested...................      26,507      20,209      23,913
        Legislative proposal, subject to
          PAYGO.............................                                -534
      99-015500  Tobacco excise tax:
        Enacted/requested...................       8,274       8,158       8,015
      99-015600  Alcohol excise tax:
        Enacted/requested...................       7,764       7,840       7,979
        Legislative proposal, subject to
          PAYGO.............................                                 -57
      99-015700  Telephone excise tax:
        Enacted/requested...................       5,829       6,205       6,611
      99-031050  Other Federal fund customs
        duties: Enacted/requested...........      12,080      12,519      13,651
        Legislative proposal, subject to
          PAYGO.............................                                 -34
                                               ---------   ---------  ----------
    General Fund Governmental receipts......   1,092,718   1,073,204   1,107,177
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      20-143500  General fund proprietary
        interest receipts, not otherwise
        classified: Enacted/requested.......         294         221         221
      20-145000  Interest payments from
        States, cash management improvement:
        Enacted/requested...................          47          35          40

    [[Page 805]]

      20-146310  Interest on quota in
        International Monetary Fund:
        Enacted/requested...................         481         481         481
      20-146400  Interest received on loans
        and credits to foreign nations:
        Enacted/requested...................         131         117         111
      20-148400  Interest on deposits in tax
        and loan accounts: Enacted/requested         341         225         450
      20-149900  Interest received from
        credit financing accounts: Enacted/
        requested...........................      11,050      11,147      11,747
      20-276330  Community Development
        Financial Institutions Fund,
        downward re-estimate of subsidies:
        Enacted/requested...................                       1
      20-286800  Dollar conversion of
        foreign currency loan repayments:
        Enacted/requested...................           3           4           4
      20-286900  Repayment of loans and
        credits to foreign nations: Enacted/
        requested...........................          71          85          88
      20-322000  All other general fund
        proprietary receipts: Enacted/
        requested...........................       1,088       1,092       1,092
      20-387500  Budget clearing account
        (suspense): Enacted/requested.......        -223
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................      13,283      13,408      14,234
    ----------------------------------------------------------------------------
    Intragovernmental payments:
      13-141000  Interest on investment,
        economic development revolving fund:
        Enacted/requested...................           2           2           2
      14-142400  Interest on investment,
        Colorado River projects: Enacted/
        requested...........................           4           4           4
      14-142700  Interest on advances to
        Colorado River Dam fund, Boulder
        Canyon project: Enacted/requested...          12          12          11
      20-133800  Interest on loans to the
        Presidio: Enacted/requested.........           3           3           3
      20-135100  Interest on loans to BPA:
        Enacted/requested...................         547         502         481
      20-135400  Interest on loans for
        housing for the elderly or
        handicapped: Enacted/requested......         274         229         188
      20-136100  Interest on loans to the
        Secretary of Transportation,
        railroad rehabilitation and
        improvement fund: Enacted/requested.           5           5           5
      20-136300  Interest on loans for
        college housing and academic
        facilities loans, Education:
        Enacted/requested...................          16          11          10
      20-140100  Interest on loans to
        Commodity Credit Corporation:
        Enacted/requested...................         283         206         333
      20-140500  Interest on loans to
        H.U.D., college housing loans,
        Education: Enacted/requested........           3           2           1
      20-141700  Interest on loans to
        Tennessee Valley Authority: Enacted/
        requested...........................                                   2
      20-141800  Interest on loans to
        Federal Financing Bank: Enacted/
        requested...........................       2,040       2,268       2,482
        Legislative proposal, not subject to
          PAYGO.............................                     -23         -72
      20-142500  Interest on loans to rural
        development insurance fund: Enacted/
        requested...........................          34          20          12
      20-143300  Interest on loans to
        national flood insurance fund, DHS:
        Enacted/requested...................          14
      20-149500  Interest payments on
        repayable advances to the black lung
        disability trust fund: Enacted/
        requested...........................         596         621         640
        Legislative proposal, not subject to
          PAYGO.............................                               1,851
      20-149700  Payment of interest on
        advances to the Railroad Retirement
        Board: Enacted/requested............         222         194         160
      20-241600  Charges for administrative
        expenses of Social Security Act as
        amended: Enacted/requested..........         321         327         328
      20-310100  Recoveries from Federal
        agencies for settlement of claims
        for contract disuptes: Enacted/
        requested...........................         196
      20-320000  Receivables from cancelled
        accounts: Enacted/requested.........         320         100         100
      20-330600  Transfer of excess receipts
        to the general fund, Federal fund
        payments: Enacted/requested.........                       2
      20-388500  Undistributed
        intragovernmental payments: Enacted/
        requested...........................        -293
      73-142800  Interest on advances to
        Small Business Administration:
        Enacted/requested...................          45          25           9
      91-142200  Interest on loans, higher
        education facilities loan fund:
        Enacted/requested...................           2           1           1
                                               ---------   ---------  ----------
    General Fund Intragovernmental payments.       4,646       4,511       6,551
    ---------------------------------------------------------------------------

                       Other Consolidated Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
      20-977920  Interest, Miscellaneous
        trust funds, government-wide........           1           1           1
    ---------------------------------------------------------------------------

                 GENERAL PROVISIONS--DEPARTMENT OF THE TREASURY

        Sec. 110. Appropriations to the Department of the Treasury in this
    Act shall be available for uniforms or allowances therefor, as
    authorized by law (5 U.S.C. 5901), including maintenance, repairs, and
    cleaning; purchase of insurance for official motor vehicles operated in
    foreign countries; purchase of motor vehicles without regard to the
    general purchase price limitations for vehicles purchased and used
    overseas for the current fiscal year; entering into contracts with the
    Department of State for the furnishing of health and medical services to
    employees and their dependents serving in foreign countries; and
    services authorized by 5 U.S.C. 3109.
        Sec. 111. Not to exceed 2 percent of any appropriations in this Act
    made available to the Departmental Offices, Inspector General for
    Treasury, Financial Management Service, Alcohol and Tobacco Tax and
    Trade Bureau, Financial Crimes Enforcement Network, and Bureau of the
    Public Debt, may be transferred between such appropriations upon advance
    notification of the Committees on Appropriations. No transfer may
    increase or decrease any such appropriation by more than 2 percent.
        Sec. 112. Not to exceed 2 percent of any appropriation made
    available in this Act to the Internal Revenue Service may be transferred
    to the Inspector General for Treasury appropriation upon advance
    notification of the Committees on Appropriations. No transfer may
    increase or decrease any such appropriation by more than 2 percent.
        Sec. 113. Of the funds available for the purchase of law enforcement
    vehicles, no funds may be obligated until the Secretary of the Treasury
    certifies that the purchase by the respective Treasury bureau is
    consistent with Departmental vehicle management principles: Provided,
    That the Secretary may delegate this authority to the Assistant
    Secretary for Management.
        Sec. 114. The Secretary of the Treasury may transfer funds from
    ``Salaries and Expenses'', Financial Management Service, to the Debt
    Services Account as necessary to cover the costs of debt collection:
    Provided, That such amounts shall be reimbursed to such Salaries and
    Expenses account from debt collections received in the Debt Services
    Account.
        Sec. 115. None of the funds appropriated or otherwise made available
    by this or any other Act may be used by the United States Mint to
    construct or operate any museum without advance notification of the
    House Committee on Financial Services and the Senate Committee on
    Banking, Housing, and Urban Affairs.
        Sec. 116. The Treasury Department Appropriations Act, 1997 (as
    contained in section 101(f), Division A of Public Law 104-208), under
    the heading ``Treasury Franchise Fund'', as amended by section 120 of
    the Treasury Department Appropriations Act, 2001 (as enacted into law by
    section 1(a)(3) of Public Law 106-554), is further amended by replacing
    ``October 1, 2002'' with ``October 1, 2004''.
        Sec. 117. Section 122 of Public Law 105-119 (5 U.S.C. 3104 note), as
    amended, is further amended in subsection (g)(1), by striking ``4
    years'' and inserting ``5 years''.
        Sec. 118. (a) Short Title.--This Act may be cited as the
    ``Department of the Treasury Inspector General Consolidation Act of
    2003''.
        (b) Consolidation of Offices.--Beginning in fiscal year 2004 and
    thereafter, the Office of Treasury Inspector General for Tax
    Administration established by the Internal Revenue Service Restructuring
    and Reform Act of 1998, and the Office of Inspector General of the
    Department of the Treasury established by the Inspector General Act
    Amendments of 1988, are consolidated. The consolidated entity shall be
    established as the Office of Inspector General of the Department of the
    Treasury, and all powers, duties and responsibilities assigned to each
    entity shall be transferred to the consolidated entity. Effective upon
    such consolidation and consistent with section 3 of this Act, the Office
    of Treasury Inspector General for Tax Administration established by the
    Internal Revenue Service Restructuring and Reform Act of 1998, and the
    Office of Inspector General of the Department of the Treasury
    established by the Inspector General Act Amendments of 1988 are
    abolished.
        (c) Amendments to the Inspector General Act of 1978.--The Inspector
    General Act of 1978, as amended, is further amended--
            (1) in section 2 (5 U.S.C. app. 3 Sec. 2), by striking the
        matter following ``there is established'' and inserting the
        following: ``in each of such establishments an Office of Inspector
        General.'';
            (2) in section 8D (5 U.S.C. app. 3 Sec. 8D), by striking the
        matter following the title (``Special provisions concerning the
        Department of the Treasury'') and inserting the following:

    [[Page 806]]

        ``(a)(1) Notwithstanding the last two sentences of section 3(a) [5
    U.S.C. app. 3 Sec. 3(a)], the Inspector General of the Department of the
    Treasury shall be under the authority, direction, and control of the
    Secretary of the Treasury with respect to audits or investigations, or
    the issuance of subpoenas, which require access to sensitive information
    concerning--
            (A) ongoing criminal investigations or proceedings;
            (B) undercover operations;
            (C) the identity of confidential sources, including protected
        witnesses;
            (D) deliberations and decisions on policy matters, including
        documented information used as a basis for making policy decisions,
        the disclosure of which could reasonably be expected to have a
        significant influence on the economy or market behavior;
            (E) intelligence or counterintelligence matters; or
            (F) other matters the disclosure of which would constitute a
        serious threat to national security.
        (2) With respect to the information described under paragraph (1),
    the Secretary of the Treasury may prohibit the Inspector General of the
    Department of the Treasury from carrying out or completing any audit or
    investigation, or from issuing any subpoena, after such Inspector
    General has decided to initiate, carry out, or complete such audit or
    investigation or to issue such subpoena, if the Secretary of the
    Treasury determines that such prohibition is necessary to prevent the
    disclosure of any information described under paragraph (1) or to
    prevent significant impairment to the national interests of the United
    States.
        (3) If the Secretary of the Treasury exercises any power under
    paragraph (1) or (2), the Secretary of the Treasury shall notify the
    Inspector General of the Department of the Treasury in writing stating
    the reasons for such exercise. Within 30 days after receipt of any such
    notice, the Inspector General of the Department of the Treasury shall
    transmit a copy of such notice to the Committees on Governmental Affairs
    and Finance of the Senate and the Committees on Government Reform and
    Ways and Means of the House of Representatives, and to other appropriate
    committees or subcommittees of the Congress.
        (4) The Secretary of the Treasury may not exercise any power under
    paragraph (1) or (2) with respect to the duties and responsibilities of
    the Inspector General of the Department of the Treasury concerning the
    Internal Revenue Service, the Internal Revenue Service Oversight Board,
    or the Office of Chief Counsel of the Internal Revenue Service.
        (b)(1) The Inspector General of the Department of the Treasury shall
    exercise all duties and responsibilities of an Inspector General of an
    establishment with respect to the Department of the Treasury and the
    Secretary of the Treasury.
        (2) Subject to subsection (a), the Inspector General of the
    Department of the Treasury may initiate, conduct and supervise such
    audits and investigations in the Department of the Treasury as the
    Inspector General of the Department of the Treasury considers
    appropriate.
        (3) If the Inspector General of the Department of the Treasury
    initiates an audit or investigation under subsection (b), the Inspector
    General of the Department of the Treasury may provide the head of the
    affected bureau or office which is the subject of the audit or
    investigation with written notice that the Inspector General of the
    Department of the Treasury has initiated such audit or investigation. If
    the Inspector General of the Department of the Treasury issues a notice
    under the preceding sentence, no other audit or investigation shall be
    initiated into the matter under audit or investigation by the Inspector
    General of the Department of the Treasury and any other audit or
    investigation of such matter shall cease.
        (c)(1) The Inspector General of the Department of the Treasury shall
    have access to returns and return information, as defined in section
    6103(b) of the Internal Revenue Code of 1986 [26 U.S.C. Sec. 6103(b)],
    only in accordance with the provisions of section 6103 of such Code [26
    U.S.C. Sec. 6103] and this Act.
        (2) The Internal Revenue Service shall maintain the same system of
    standardized records or accounting of all requests from the Inspector
    General of the Department of the Treasury for inspection or disclosure
    of returns and return information (including the reasons for and dates
    of such requests), and of returns and return information inspected or
    disclosed pursuant to such requests, as described under section
    6103(p)(3)(A) of the Internal Revenue Code of 1986 [26 U.S.C.
    Sec. 6103(p)(3)(A)]. Such system of standardized records or accountings
    shall also be available for examination in the same manner as provided
    under section 6103(p)(3) of the Internal Revenue Code of 1986 [26 U.S.C.
    Sec. 6103(p)(3)(A)].
        (3) The Inspector General of the Department of the Treasury shall be
    subject to the same safeguards and conditions for receiving returns and
    return information as are described under section 6103(p)(4) of the
    Internal Revenue Code of 1986 [26 U.S.C. Sec. 6103(p)(4)].
        (d) An audit or investigation conducted by the Inspector General of
    the Department of the Treasury shall not affect a final decision of the
    Secretary of the Treasury or the Secretary's delegate under section 6406
    of the Internal Revenue Code of 1986 [26 U.S.C. Sec. 6406].
        (e)(1) Any report required to be transmitted by the Secretary of the
    Treasury to the appropriate committees or subcommittees of the Congress
    under section 5(d) [5 U.S.C. app. 3 Sec. 5(d)] shall also be
    transmitted, within the seven-day period specified under such section,
    to the Committees on Governmental Affairs and Finance of the Senate and
    the Committees in Government Reform and Ways and Means of the House of
    Representatives.
        (2) Any report made by the Inspector General of the Department of
    the Treasury concerning the Internal Revenue Service, the Internal
    Revenue Service Oversight Board, or the Office of Chief Counsel of the
    Internal Revenue Service that is required to be transmitted by the
    Secretary of the Treasury to the appropriate committees or subcommittees
    of Congress under section 5(d) [5 U.S.C. app. 3 Sec. 5(d)] shall also be
    transmitted, within the seven-day period specified under such
    subsection, to the Internal Revenue Service Oversight Board and the
    Commissioner of Internal Revenue.
        (f) In addition to the requirements of the first sentence of section
    3(a) [5 U.S.C. app. Sec. 3(a)], the Treasury Inspector General of the
    Department of the Treasury should have demonstrated ability to lead a
    large and complex organization.
        (g) An individual appointed to the position of Inspector General of
    the Department of the Treasury may not be an employee of the Internal
    Revenue Service--
            (1) during the two-year period preceding the date of appointment
        to such position; or
            (2) during the five-year period following the date such
        individual ends service in such position.
        (h)(1) In addition to the duties and responsibilities exercised by
    an inspector general of an establishment, the Inspector General of the
    Department of the Treasury--
            (A) shall have the authority and duty to enforce the criminal
        provisions within the scope of the Inspector General of the
        Department of the Treasury's jurisdiction, powers, duties and
        responsibilities as an Inspector General of an establishment under
        this Act;
            (B) in enforcing the criminal provisions described in
        subparagraph (A), shall have the authority to:
                (1) execute and serve search warrants and arrest warrants,
            and serve subpoenas and summonses issued under authority of the
            United States;
                (2) make arrests without warrant for any offense against the
            United States relating to the laws under the jurisdiction,
            powers, duties and responsibilities of the Inspector General of
            the Department of the Treasury committed in the presence of an
            employee of the Inspector General of the Department of the
            Treasury authorized to enforce such laws, or for any felony
            cognizable under such laws if there is a reasonable ground to
            believe that the person to be arrested has committed or is
            committing any such felony;
                (3) make seizures of property subject to forfeiture under
            such laws; and
                (4) carry firearms.
            (C) shall be responsible for protecting the Internal Revenue
        Service against external attempts to corrupt or threaten employees
        of the Internal Revenue Service, but shall not be responsible for
        the conducting of background checks and the providing of physical
        security; and
            (D) may designate any employee in the Office of the Inspector
        General of the Department of the Treasury to enforce such laws and
        perform such functions referred to under subparagraphs (A), (B) and
        (C).
        (2)(A) In performing a law enforcement function under paragraph
    (h)(1), the Inspector General of the Department of the Treasury shall
    report any reasonable grounds to believe there has been a violation of
    Federal criminal law to the Attorney General at an appropriate time as
    determined by the Inspector General of the Department of the Treasury,
    notwithstanding section 4(d) [5 U.S.C. app. 3 Sec. 4(d)].
        (B) in the administration of section 5(d) [5 U.S.C. app. 3
    Sec. 5(d)] and subsection (e)(2) of this section, the Secretary of the
    Treasury may transmit the required report at an appropriate time as
    deter

    [[Page 807]]

    mined by the Secretary, if the problem, abuse, or deficiency relates
    to--
            (i) the performance of a law enforcement function under
        paragraph (h)(1); and
            (ii) sensitive information concerning matters under subsection
        (a)(1)(A) through (F).
        (3) Nothing in this subsection shall be construed to affect the
    authority of any other person to carry out or enforce any provision
    specified in paragraph (h)(1).
        (i)(1) The Commission of Internal Revenue or the Internal Revenue
    Service Oversight Board may request, in writing, the Inspector General
    of the Department of the Treasury to conduct an audit or investigation
    concerning the Internal Revenue Service. If the Inspector General of the
    Department of the Treasury determines not to conduct such audit or
    investigation, the Inspector General shall timely provide a written
    explanation for such determination to the person making the request.
        (2)(A) Any final report of an audit conducted by the Inspector
    General of the Department of the Treasury concerning the Internal
    Revenue Service, the Internal Revenue Service Oversight Board, and the
    Office of the Chief Counsel of the Internal Revenue Service, shall be
    timely submitted by the Inspector General to the Commissioner of
    Internal Revenue and the Internal Revenue Service Oversight Board.
        (B) The Inspector General of the Department of the Treasury shall
    periodically submit to the Commissioner and Board a list of
    investigations concerning the Internal Revenue Service, the Internal
    Revenue Service Oversight Board, and the Office of the Chief Counsel of
    the Internal Revenue Service, for which a final report has been
    completed by the Inspector General and shall provide a copy of any such
    report upon request of the Commissioner or Board.
        (C) This paragraph applies regardless of whether the applicable
    audit or investigation is requested under paragraph (i)(1).''
        (3) in section Sec. 9(a)(1)(L) 95 U.S.C. app. 3 Sec. 9(a)(1)(L)), by
    striking the matter following ``(L)'' and inserting the following: ``of
    the Department of the Treasury, the offices of that department referred
    to as the ``Office of Inspector General'' and the ``Treasury Inspector
    General for Tax Administration.''.''
        (d) Savings Provisions.--(1) Completed or pending administrative
    actions, proceedings, orders, determinations, rules, regulations,
    personnel actions, permits, agreements, grants, contracts, certificates,
    licenses, registrations, privileges, or civil actions, of either the
    Inspector General of the Department of the Treasury or the Treasury
    Inspector General for Tax Administration shall not be affected by the
    enactment of this Act or the consolidation of the entities, but shall
    continue in effect according to their terms until amended, modified,
    superseded, terminated, set aside, or revoked, in accordance with law by
    an officer of the United States or a court of competent jurisdiction, or
    by operation of law.
        (2) References to either the Inspector General of the Department of
    the Treasury or the Treasury Inspector General for Tax Administration in
    statutes, Executive Orders, rules, regulations, directives, or
    delegations of authority that precede the effective date of this Act
    shall be deemed to refer to the Inspector General of the Department of
    the Treasury established by this Act, unless otherwise provided by this
    Act.
        (e) Amendments to the Internal Revenue Code of 1986.--The Internal
    Revenue Code of 1986 (I.R.C.), as amended, is further amended--
        (1) in I.R.C. Sec. 6103(h)(6)(A), by replacing ``Treasury Inspector
    General for Tax Administration'' with ``Inspector General of the
    Department of the Treasury'';
        (2) in I.R.C. Sec. 6103(h)(6)(B)(i), by replacing ``Treasury
    Inspector General for Tax Administration'' with ``Inspector General of
    the Department of the Treasury'';
        (3) in I.R.C. Sec. 6103(k)(6), by replacing ``Treasury Inspector
    General for Tax Administration'' with ``Inspector General of the
    Department of the Treasury'';
        (4) in I.R.C. Sec. 7803(c)(2)(B)(iv), by replacing both ``treasury
    inspector general for tax administration'' and ``Treasury Inspector
    General for Tax Administration'' with ``Inspector General of the
    Department of the Treasury'';
        (5) in the heading of I.R.C. Sec. 7803(d), by replacing ``Treasury
    Inspector General for Tax Administration'' with ``Inspector General of
    the Department of the Treasury'';
        (6) in I.R.C. Sec. 7803(d)(1), by replacing ``Treasury Inspector
    General for Tax Administration'' with ``Inspector General of the
    Department of the Treasury'';
        (7) in I.R.C. Sec. 7803(d)(2)(A), by replacing ``Treasury Inspector
    General for Tax Administration with ``Inspector General of the
    Department of the Treasury''; and
        (8) in I.R.C. Sec. 7803(d)(3), by replacing ``Treasury Inspector
    General for Tax Administration'' with ``Inspector General of the
    Department of the Treasury'';
        (f) Transition Provision.--The President may designate an individual
    to serve as the Inspector General of the Department of the Treasury
    established by this Act until an Inspector General of the Department of
    the Treasury is appointed pursuant to section 3 of the Inspector General
    Act of 1978, as amended.

                                    \

                                        deg.

                           TITLE V--GENERAL PROVISIONS

                                    This Act

        Sec. 501. No part of any appropriation contained in this Act shall
    remain available for obligation beyond the current fiscal year unless
    expressly so provided herein.
        Sec. 502. The expenditure of any appropriation under this Act for
    any consulting service through procurement contract, pursuant to 5
    U.S.C. 3109, shall be limited to those contracts where such expenditures
    are a matter of public record and available for public inspection,
    except where otherwise provided under existing law, or under existing
    Executive order issued pursuant to existing law.
        Sec. 503. No funds appropriated pursuant to this Act may be expended
    by an entity unless the entity agrees that in expending the assistance
    the entity will comply with sections 2 through 4 of the Act of March 3,
    1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy American Act'').
        Sec. 504. (a) Purchase of American-Made Equipment and Products.--In
    the case of any equipment or products that may be authorized to be
    purchased with financial assistance provided under this Act, it is the
    sense of the Congress that entities receiving such assistance should, in
    expending the assistance, purchase only American-made equipment and
    products.
        (b) Notice to Recipients of Assistance.--In providing financial
    assistance under this Act, the Secretary of the Treasury shall provide
    to each recipient of the assistance a notice describing the statement
    made in subsection (a) by the Congress.
        Sec. 505. No funds appropriated by this Act shall be available to
    pay for an abortion, or the administrative expenses in connection with
    any health plan under the Federal employees health benefit program which
    provides any benefits or coverage for abortions.
        Sec. 506. The provision of section 505 shall not apply where the
    life of the mother would be endangered if the fetus were carried to
    term, or the pregnancy is the result of an act of rape or incest.
        Sec. 507. None of the funds made available in this Act may be used
    by the Executive Office of the President to request from the Federal
    Bureau of Investigation any official background investigation report on
    any individual, except when--
            (1) such individual has given his or her express written consent
        for such request not more than 6 months prior to the date of such
        request and during the same presidential administration; or
            (2) such request is required due to extraordinary circumstances
        involving national security.
        Sec. 508. The cost accounting standards promulgated under section 26
    of the Office of Federal Procurement Policy Act (Public Law 93-400; 41
    U.S.C. 422) shall not apply with respect to a contract under the Federal
    Employees Health Benefits Program established under chapter 89 of title
    5, United States Code.
        Sec. 509. For the purpose of resolving litigation and implementing
    any settlement agreements regarding the nonforeign area cost-of-living
    allowance program, the Office of Personnel Management may accept and
    utilize (without regard to any restriction on unanticipated travel
    expenses imposed in an Appropriations Act) funds made available to the
    Office pursuant to court approval.
        Sec. 510. Sections 2471 and 2471a of Title 42, U.S. Code, are hereby
    repealed.
        Sec. 511. Beginning in fiscal year 2004 and thereafter, (a) section
    754 of the Tariff Act of 1930 (19 U.S.C. 1675c) is repealed: Provided,
    That duties assessed and collected in fiscal year 2003 pursuant to such
    section shall be distributed as provided in that section; and (b) the
    Commissioner of Customs shall deposit into the miscellaneous receipts of
    the Treasury all antidumping or countervailing duties (including
    interest earned on such duties) that are collected after September 30,
    2003 under the antidumping orders or findings of the countervailing duty
    orders.