[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.

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                                    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.