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Annual Report:
Budget Review
2013

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Annual Report:
Budget Review
2013

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

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This and other Federal Reserve Board reports are also available online at
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iii

Contents

Introduction .................................................................................... 1
Overview of the Federal Reserve System ..................................... 1
Summary of 2012 Income and Expenditures ................................ 2
Operational Areas ....................................................................... 3
Federal Reserve System Budget ........................................................ 9
2013 System Budget Initiatives .................................................. 11
Trends in Expenses and Employment ......................................... 11
2013 Capital Budgets ................................................................ 12
Board of Governors Budgets ......................................................... 13
2012 Budget Performance ......................................................... 13
2013 Budgets ........................................................................... 14
Federal Reserve Bank Budgets ....................................................... 19
2012 Budget Performance ......................................................... 21
Initiatives Affecting the 2013 Budgets ........................................ 22
2013 Personnel Expenses ......................................................... 24
Risks in the 2013 Budgets ......................................................... 25
2013 Capital Budgets ................................................................ 25
Currency Budget ............................................................................ 27
2012 Budget Performance ......................................................... 27
2013 Budget ............................................................................. 28
Appendix A: Federal Reserve Budget Processes ............................. 31
Board of Governors ................................................................... 31
Federal Reserve Banks .............................................................. 32
Currency .................................................................................. 32
Appendix B: Expenses and Employment at the Board of
Governors ..................................................................................... 35
Appendix C: Expenses and Employment at the Federal
Reserve Banks ............................................................................... 39
Appendix D: Maps of the Federal Reserve System ........................ 47
Notes ....................................................................................... 47

1

Introduction

This publication provides current budgeted expenses of the Federal Reserve
Board of Governors and the Federal Reserve Banks, as well as the previous
year’s income and expenses for both the Board and the Banks. It also
describes their budgeting processes and shows trends in their expenses and
employment. For a comprehensive report on the Board and Reserve Banks’
operations and activities during the year, see the Annual Report of the Board
of Governors of the Federal Reserve System at www.federalreserve.gov/
publications/annual-report/default.htm.

Overview of the Federal Reserve System
The Federal Reserve System—the nation’s central bank—consists of the
Board of Governors in Washington, D.C., the 12 Federal Reserve Banks and
their 24 branches distributed throughout the nation, the Federal Open Market Committee (FOMC), and three advisory councils—the Federal Advisory
Council, the Community Depository Institutions Advisory Council, and the
Model Validation Council.1 The System was created in 1913 by the Congress
to establish a safe and flexible monetary and banking system. Over the years,
the Congress has adjusted the Federal Reserve’s authority and responsibility
to help achieve broad national economic and financial objectives.
As the nation’s central bank, the Federal Reserve System performs five general functions:
• conducting the nation’s monetary policy by influencing the money and
credit conditions in the economy in pursuit of maximum employment,
stable prices, and moderate long-term interest rates
• helping maintain the stability of the financial system and containing systemic risks that may arise in financial markets

1

The Model Validation Council was established in 2012 by the Board of Governors to provide
expert and independent advice on its process to rigorously assess the models used in stress
tests of banking institutions; for more information on the advisory councils, see www
.federalreserve.gov/aboutthefed/advisorydefault.htm.

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Annual Report: Budget Review

• supervising and regulating a variety of financial institutions and activities
to ensure the safety and soundness of the nation’s banking and financial
systems and to protect certain rights of consumers
• providing certain financial services to depository institutions, the U.S. government, and foreign official institutions
• promoting consumer protection, fair lending, and community development

Summary of 2012 Income and Expenditures
In carrying out its responsibilities in 2012, the Federal Reserve System
incurred $3.7 billion in net expenses. Total spending of $4.7 billion was offset
by $1.0 billion in revenue from priced services, claims for reimbursement,
and other income. Total 2012 expenses were $29.9 million, or 0.6 percent, less
than the amount budgeted for 2012 (table 1).
Table 1. Total expenses of the Federal Reserve System, 2012
Millions of dollars, except as noted
Variance
Item

Budgeted

Actual
Amount

1

Reserve Banks
Board2
Currency
Total System expenses

3,446.1
532.4
747.0
4,725.5

3,462.1
512.4
721.1
4,695.6

Percent

16.0
-20.0
-26.0
-29.9

0.5
-3.8
-3.5
-0.6

Note: Excludes capital outlays as well as assessments for the Consumer Financial Protection Bureau and the Office of
Financial Research. Components may not sum to totals and may not yield percentages shown because of rounding.
1
The final 2012 budget of $3,441.3 million was approved by the Board in December 2011. In May 2012, the Board
approved an additional $4.8 million for employee equity adjustments, which is included in the 2012 budget number
above.
2
Includes expenses of the Office of Inspector General.

The Reserve Banks’ current income in 2012 was $81.6 billion.2 The major
sources of income were interest earnings from the portfolio of U.S. government securities ($49.0 billion) and federal agency mortgage-backed securities
(MBS) ($31.4 billion) in the System Open Market Account. Earnings in
excess of expenses, dividends, and surplus are transferred to the U.S. Treasury—in 2012, a total of $88.4 billion. (These net earnings are treated as
receipts in the U.S. budget accounting system when received and as antici2

For a list of items included in the Reserve Banks’ current income, refer to Table 10, Income
and expenses of the Federal Reserve Banks, in the “Statistical Tables” section of the 2012
Annual Report of the Board of Governors of the Federal Reserve System, available at www
.federalreserve.gov/publications/annual-report/default.htm. More detailed information on
System income and the distribution of income can also be found in the Annual Report.

2013

3

pated earnings projected by the Office of Management and Budget in the
Budget of the United States Government.)

Operational Areas
The major operations of the Federal Reserve System can be described using
the following broad categories: monetary and economic policy, supervision
of financial institutions, services to financial institutions and the public, and
services to the U.S. Treasury and other government agencies.

Monetary and Economic Policy
The monetary and economic policy operational area encompasses Federal
Reserve System actions to influence the availability and cost of money and
credit in the pursuit of the Federal Reserve’s statutory objectives of maximum employment, stable prices, and moderate long-term interest rates. It
also encompasses broad activities undertaken by the Federal Reserve System
to monitor the stability of financial institutions and financial markets and to
develop appropriate policy responses to structural and emerging risks.
In developing its monetary policy, the Federal Reserve collects vast amounts
of banking, financial, and economic data from the public. This information
generally flows through the Reserve Banks to the Board, where the data are
compiled and made available to the public. The research staffs at the Board
and the Banks use the data, along with information collected by other public
and private institutions, to assess the state of the economy and the relationships between the financial markets and economic activity. Staff members
provide background information to the Board of Governors and the FOMC,
including detailed economic and financial analyses and projections for the
domestic and international economies. These analyses and projections are
used in determining the appropriate stance of monetary policy, including the
path for the federal funds rate and the size and composition of the Federal
Reserve balance sheet. Staff members also conduct longer-run economic
studies on regional, national, and international issues in order to improve
understanding of a range of questions of interest to policymakers and
economists.
To help the Federal Reserve carry out its responsibilities for promoting the
stability of the financial system, the Board’s Office of Financial Stability
Policy and Research coordinates with other groups at the Board and at the
Reserve Banks to monitor financial institutions, markets, and infrastructure;
assess potential risks; and develop appropriate policy responses. It also helps
develop and evaluate alternative approaches to implement macroprudential
regulations and works with bank supervisory committees on a variety of

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Annual Report: Budget Review

issues. Staff members conduct research in banking, finance, and macroeconomics to foster a broader understanding of financial stability issues. In
addition, the office coordinates the Board’s interagency and international
work on financial stability, including the Board’s responsibilities as a member of the Financial Stability Oversight Council and the Financial Stability
Board.
Details on the Federal Reserve’s monetary and economic policy activities
and decisionmaking are published in the Board’s Annual Report and its
semiannual Monetary Policy Reports to the Congress as well as in FOMC
meeting statements and minutes. These publications are available on the
Board’s website at www.federalreserve.gov.

Supervision and Regulation of Financial Institutions
The Federal Reserve is the federal supervisor and regulator of all U.S. BHCs,
including financial holding companies, and state-chartered commercial
banks that are members of the Federal Reserve System. It also has responsibility for supervising the operations of all Edge Act and agreement corporations, the international operations of state member banks and U.S. BHCs,
and the U.S. operations of foreign banking organizations. Furthermore,
through the Dodd-Frank Act, the Federal Reserve has been assigned responsibilities for nonbank financial firms and financial market utilities (FMUs)
designated by the Financial Stability Oversight Council as systemically
important as well as savings and loan holding companies (SLHCs).3 In overseeing the institutions under the Federal Reserve’s authority, the Federal
Reserve seeks primarily to promote safety and soundness, including compliance with laws and regulations.
The Reserve Banks conduct on-site examinations and inspections of state
member banks, BHCs, SLHCs, and branches and agencies of foreign banking organizations; review applications for mergers, acquisitions, and changes
in control from banks and BHCs; and take formal supervisory actions. In
2012, the Federal Reserve conducted 487 examinations of state member
banks (some of them jointly with state agencies); 691 inspections of large
BHCs; 3,150 inspections of small, noncomplex BHCs; and 301 inspections
of SLHCs. It also acted on 1,029 proposals involving BHC and SLHC formations and acquisitions, bank mergers, and other transactions. In coordination with appropriate state regulatory authorities, the Federal Reserve con-

3

Under the Dodd-Frank Act, supervisory and regulatory authority for SLHCs was transferred
from the Office of Thrift Supervision to the Board of Governors on July 21, 2011. For a
fuller discussion of entities supervised and regulated by the Federal Reserve, see the “Supervision and Regulation” section of the Annual Report, available at www.federalreserve.gov/
publications/annual-report/default.htm.

2013

5

ducted or participated in 447 examinations of branches and agencies of foreign banking organizations.
The Board also enforces the compliance of state member banks and certain
foreign banking organizations with the federal laws that protect consumers
who use credit and deposit accounts. During the reporting period from
July 1, 2011, to June 30, 2012, the System conducted 282 consumer compliance examinations of state member banks and 11 examinations of foreign
banking organizations.4 During this period, the System also conducted 256
examinations of banks for their compliance with the Community Reinvestment Act.
Beyond these activities, the Federal Reserve System maintains continuous
oversight of the banking industry as part of its effort to ensure the overall
safety and soundness of the financial system.

Services to Financial Institutions and the Public
The Federal Reserve System plays a central role in the nation’s payment systems by ensuring that enough currency and coin are in circulation to meet
the public’s demand. As the issuing authority for Federal Reserve notes, the
Board orders new currency from the Treasury’s Bureau of Engraving and
Printing and issues that currency to the Reserve Banks. The Reserve Banks
distribute currency and coin to the public through depository institutions to
meet demand. The Reserve Banks process currency that they receive from
depository institutions and remove poor quality and suspect counterfeit
notes. In 2012, the Reserve Banks distributed approximately $747.2 billion in
currency and $6.3 billion in coin to depository institutions. The Reserve
Banks also received approximately $654.5 billion in currency and $5.7 billion
in coin from depository institutions, and they destroyed $105.5 billion in
unfit currency.
The Reserve Banks also play a central role in the nation’s payment systems
by collecting checks and providing a variety of electronic services for depository institutions. In 2012, the Banks collected 6.6 billion commercial checks,
with a total value of $8.1 trillion. The Banks’ automated clearinghouse
(ACH) service allows depository institutions to send or receive credit transfers, such as direct payroll payments and corporate payments to vendors, and
debit payment transactions, such as payments of insurance premiums, mortgages, and other bills from consumer accounts. In 2012, the Reserve Banks
4

The foreign banking organizations examined by the Federal Reserve are organizations that
operate under section 25 or 25A of the Federal Reserve Act (Edge Act and agreement corporations) and state-chartered commercial lending companies owned or controlled by foreign
banks. These institutions are typically not subject to the Community Reinvestment Act, and
they typically engage in relatively few activities covered by consumer protection laws.

6

Annual Report: Budget Review

processed approximately 12 billion ACH transactions, valued at $23.9 trillion. Approximately 11.5 percent of the transactions were for the federal government; the rest were for commercial establishments.
The Reserve Banks’ Fedwire Funds Service allows participants to use their
accounts at the Reserve Banks to transfer funds to other participants. In
2012, the Reserve Banks processed approximately 132 million Fedwire funds
transfers, valued at $599.2 trillion.
The Reserve Banks’ National Settlement Service allows participants in private clearing arrangements to settle transactions through their Federal
Reserve accounts. In 2012, 16 local and national private arrangements used
the National Settlement Service. The Reserve Banks processed 662,912 settlement entries for these arrangements, with a debit value of $16.1 trillion in
2012.
The Reserve Banks’ Fedwire Securities Service provides securities services to
participants, including the settlement of book-entry transfers of securities
issued by the Treasury, federal government agencies, government-sponsored
enterprises, and certain international organizations. In 2012, participants
originated 18.7 million transfers, valued at more than $288.4 trillion.

Services to the U.S. Treasury and
Other Government Agencies
As fiscal agents and depositories for the federal government, the Reserve
Banks auction Treasury securities; process electronic and check payments for
the Treasury; collect funds owed to the federal government; maintain the
Treasury’s bank account; and develop, operate, and maintain a number of
automated systems to support the Treasury’s mission. The Reserve Banks
also provide certain fiscal agency and depository services to other entities.
The Treasury and other entities fully reimburse the Reserve Banks for the
costs of providing fiscal agency and depository services.
The Reserve Banks auction, issue, maintain, and redeem securities, as well as
operate the automated systems supporting paper U.S. savings bonds and
book-entry marketable Treasury securities. In 2012, the Reserve Banks conducted 264 Treasury securities auctions and processed nearly 11.6 million
Treasury securities transfers. The Reserve Banks continued to support the
Treasury’s efforts to improve the quality and efficiency of its securities
services.
The Reserve Banks collect and disburse funds on behalf of the federal government. In 2012, the Reserve Banks processed 1.4 billion government ACH

2013

7

payments and 121 million Treasury check payments. The Reserve Banks continued to support the Treasury’s ongoing effort to convert paper checks to
electronic payments through the Go Direct initiative and operated Pay.gov,
an application supporting the Treasury’s program that allows the public to
use the Internet to authorize and initiate payments to federal agencies.
The Treasury maintains operating cash accounts at the Reserve Banks. In
2012, the Reserve Banks continued to support the Treasury’s effort to modernize its financial management processes, with a focus on improving centralized government accounting and reporting functions. The Reserve Banks
also managed several new and ongoing software development efforts in support of the Treasury’s objectives.
When permitted by federal statute or when required by the Secretary of the
Treasury, the Reserve Banks provide fiscal agency and depository services to
other domestic and international entities. Book-entry securities issuance and
maintenance activities account for a significant amount of the work performed for these entities.

9

Federal Reserve System Budget

Total expenses for the Federal Reserve System for 2013 are budgeted at
$5,072.7 million, an increase of 8.0 percent from 2012 actual expenses. Of
this total, $3,688.2 million is for the Reserve Banks, $586.9 million is for the
Board and the Office of Inspector General, and $797.6 million is for the cost
of new currency (table 2 and table 3). Revenue from priced services provided
to depository institutions is expected to total $423.9 million, or 8.4 percent of
total budgeted expenses. This revenue, combined with claims for reimbursement and other income, results in the recovery of approximately 19 percent
of the System’s budgeted 2013 expenses.5 When these items are deducted
from budgeted expenses, 2013 net expenses for the System are 9.9 percent
higher than 2012 net expenses (table 2). Pursuant to section 318 of the
Dodd-Frank Act, the Board intends to collect assessments from certain large
bank holding companies and savings and loan holding companies and from
nonbank financial companies designated for Board supervision by the
Table 2. Total expenses of the Federal Reserve System, net of receipts and claims
for reimbursement, 2011–13
Millions of dollars, except as noted

2011
(actual)

Item

1

Total System expenses
Less
Revenue from priced services
Claims for reimbursement2
Other income
Equals
Net System expenses

2012
(actual)

2013
(budgeted)

4,363.6

4,695.6

478.6
485.3
1.6
3,398.1

Percent change
2011 to 2012

2012 to 2013

5,072.7

7.6

8.0

449.8
506.4
2.2

423.9
539.4
2.2

-6.0
4.3
38.9

-5.8
6.5
-2.6

3,737.1

4,107.2

10.0

9.9

Note: Excludes capital outlays as well as assessments for the Consumer Financial Protection Bureau and the Office of
Financial Research. Components may not sum to totals and may not yield percentages shown because of rounding.
1
Includes expenses of the Office of Inspector General.
2
Costs of fiscal agency and depository services provided to the U.S. Treasury, other government agencies, and other
fiscal principals that are billed to these agencies.

5

Claims for reimbursement refers to the costs of fiscal agency and depository services provided
to the U.S. Treasury, other government agencies, and other principals, to whom actual costs
are reimbursed by those entities. Other income is the fee that depository institutions pay for
the settlement component of the Fedwire Security Service transactions.

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Annual Report: Budget Review

Table 3. Expenses of the Federal Reserve System for operations and currency, 2011–13
Millions of dollars, except as noted

2011
(actual)

Item

1

Reserve Banks
Personnel
Nonpersonnel
Board of Governors2
Personnel
Nonpersonnel
Currency3
Total System expenses

2012
(actual)

2013
(budgeted)

3,261.3
2,317.2
944.1
452.3
333.1
119.2
650.0
4,363.6

3,462.1
2,491.0
971.1
512.4
367.3
145.1
721.1
4,695.6

3,688.2
2,681.8
1,006.4
586.9
403.4
183.4
797.6
5,072.7

Percent change
2011 to 2012

2012 to 2013

6.2
7.5
2.9
13.3
10.3
21.7
10.9
7.6

6.5
7.7
3.6
14.5
9.8
26.4
10.6
8.0

Note: Excludes capital outlays as well as assessments for the Consumer Financial Protection Bureau and the Office of
Financial Research. Components may not sum to totals and may not yield percentages shown because of rounding.
1
For detailed information on Reserve Bank expenses, see the “Federal Reserve Bank Budgets” section on page 19.
2
Includes expenses of the Office of Inspector General. During 2011, the Board approved a $0.4 million decrease in the
Board’s initial operating budget of $475.6 million. (See table 4 in the “Board of Governors Budgets” section on
page 13.)
3
For more information on currency expenses, see the “Currency Budget” section on page 27.

Financial Stability Oversight Council equal to the estimated cost of supervising and regulating those companies. These funds will be transferred in full by
the Board directly to the U.S. Department of the Treasury.
The distribution of budgeted
expenses is similar to that in previous years, with the Reserve Banks’
expenses accounting for 73 percent
of the total, new currency expenses
accounting for 16 percent, and
Board expenses accounting for the
remainder (figure 1).
System employment is budgeted at
21,196 for 2013, an increase of 428
from the 2012 actual level, primarily
due to planned staff additions in the
supervision function related to portfolio growth, increased supervisory
workload, and requirements under
the Dodd-Frank Act.6
6

Figure 1. Distribution of budgeted
expenses of the Federal Reserve
System, 2013
Board of Governors, 12%

Currency, 16%

Reserve Banks, 73%

Note: Components may not sum to 100 percent
because of rounding.

Employment numbers stated include position counts for the Board and average number of
personnel (ANP) for the Reserve Banks. ANP is the average number of employees expressed
in terms of full-time positions for the period. For instance, a full-time employee who works

2013

11

2013 System Budget Initiatives
The Federal Reserve System budget is funding increases for several initiatives, specifically in supervision and monetary policy to address resource
needs and for modernization efforts in cash operations and Treasury services.
The major factors affecting the 2013 Board and Reserve Bank budgets are
outlined in more detail in the “Board of Governors Budgets” section on
page 13 and the “Federal Reserve Bank Budgets” section on page 19,
respectively.

Trends in Expenses and Employment
From the actual 2004 level to the budgeted 2013 amount, the total expenses
of the Federal Reserve System have increased an average of 4.9 percent per
year (2.4 percent per year when adjusted for inflation) (figure 2). Over the
same period, nondefense discretionary spending by the federal government
has increased an average of 2.9 percent per year (figure 3). Over the 2004–
2013 period, Federal Reserve System employment has decreased by 1,484
(figure 4).
The most recent budgets reflect
increases for resources to address
requirements under the Dodd-Frank
Act and additional workload from
the financial market turmoil and
portfolio growth. Reserve Bank

Figure 3. Cumulative change in
Federal Reserve System expenses and
federal government expenses, 2004–13
Percent

60
50

Figure 2. Total expenses of the
Federal Reserve System, 2004–13

Federal government1

40
30

Billions of dollars

Federal Reserve2

20

6
Current dollars

5

10
0
2004

4

2006

2008

2010

2012

1

2005 dollars

Note: For 2013, budgeted. Federal government
expenses are reported on a fiscal-year basis beginning
October 1; the Federal Reserve System expenses are
reported on a calendar-year basis.

3
2
1
2004

1

Note: For 2013, budgeted. Includes expenses of the
Office of Inspector General.

Discretionary spending less expenditures on defense.
Source: Budget of the United States Government, Fiscal
Year 2013: Historical Tables, Table 8.1. Outlays by Budget Enforcement Act Category, 1962–2017.

1

2

2006

2008

2010

Calculated with the GDP price deflator.

2012

Includes expenses of the Office of Inspector General.

one-half of the year counts as 0.5 ANP for that calendar year; two half-time employees who
work the full year count as 1 ANP.

12

Annual Report: Budget Review

expenses associated with the financial crisis, in particular, peaked in
2010 and have since declined, as
liquidity programs wind down.7
These increases have been offset by
substantial expense and staffing
decreases due to restructuring efforts
in the check processing function and
staff declines and related expenses
due to efficiency measures in cash
operations and support functions.

Figure 4. Employment in the
Federal Reserve System, 2004–13
Thousands of persons

23

22

21

20

19
2004

2006

2008

2010

2012

2013 Capital Budgets

Note: For 2013, budgeted. Employment numbers presented include position counts for the Board and average number of personnel (ANP) for the Reserve Banks.

The capital budgets for the Reserve
Banks and the Board total
$764.3 million, with $492.1 million
budgeted for the Reserve Banks, Federal Reserve Information Technology
(FRIT), and Office of Employee Benefits (OEB) and $272.2 million budgeted for the Board.8 As in previous years, the 2013 capital budgets include
funding for projects that support the strategic direction outlined by the individual Reserve Banks, System business leaders, and the Board. These strategic goals focus on investments that continue to improve operational efficiencies, enhance services to Bank customers, and ensure a safe and productive
work environment. More detailed discussions of the Board and Reserve
Bank capital budgets are included in the “Board of Governors Budgets”
section on page 13 and the “Federal Reserve Bank Budgets” section on
page 19.

7

8

Although most of the liquidity programs have ended, the Federal Reserve Bank of New York
continues to incur costs for several liquidity programs, including Maiden Lane, Maiden Lane
II, Maiden Lane III, and the Term Asset-Backed Securities Loan Facility.
The capital reported for the Board also includes the amount budgeted for the Office of
Inspector General.

13

Board of Governors Budgets

The Board of Governors operates under a one-year budget. In keeping with
its statutory independence, the Office of Inspector General (OIG) prepares
its proposed budget apart from the Board’s budget. The Board and OIG
budgets for 2013 were approved in December 2012.

2012 Budget Performance
Board of Governors
The Board ended 2012 with expenses that totaled less than its operating plan
by $14.3 million. The Board’s 2012 single-year capital spending was also less
than its operating plan, and all multiyear capital projects remained within
their project life budgets.
Expenses for salaries and benefits were $0.3 million, or 0.1 percent, less than
the operating plan, mainly attributable to the following factors:
• Divisions and offices took longer than expected to fill vacancies.
• There were fewer promotions and reclassifications than anticipated.
• Actual payout of accrued annual leave was less than expected.
Expenses for goods and services were $14.1 million, or 8.9 percent, less than
the operating plan; the underrun was primarily in contractual professional
services due to fewer-than-expected executive searches, less utilization of
contractors, and delays in data purchases. Expenses in the “all other” category were also under budget due to lower-than-expected transportation subsidy program expenses, while other expense categories were under budget due
to timing delays.
The Board’s 2012 single-year capital purchases totaled less than the operating plan by $4.3 million. The Board encountered certain project delays, causing some projects to fall below budget expectations. As of year-end 2012,
budgets for the Board’s multiyear capital projects totaled $93.4 million, and
spend to-date totaled $48.1 million. Two multiyear capital projects were com-

14

Annual Report: Budget Review

pleted and retired at year-end; all other multiyear capital projects are still in
process and are expected to be completed within their budgeted amounts.

Office of Inspector General
The OIG’s operating expenses for 2012 totaled $14.9 million, or $5.6 million
less than the $20.6 million operating budget. Expenses for salaries and benefits were $13.0 million, or 19.1 percent less than the operating plan as a
result of slower-than-anticipated hiring as the OIG sought well-qualified
candidates. Expenses for goods and services were $2.0 million, or 56.5 percent less than the operating plan. As a result of delayed hiring, funds allocated for office and computer equipment purchases for new employees
remained unspent, and fewer-than-expected employees traveled to conduct
reviews and attend training.
The OIG’s 2012 single-year capital purchases totaled less than the operating
plan by $0.2 million. The OIG experienced several project delays, resulting in
some projects to fall short of budget estimates. The OIG’s budget for multiyear capital projects totaled $2.7 million. Expenses on these projects to-date
totaled $0.5 million. The OIG’s multiyear capital projects are still in progress
and expected to be completed within their respective timelines and budgets.

2013 Budgets
Board of Governors
For 2013, the Board approved a $560.0 million operating budget, a
$10.8 million single-year capital budget, and a $261.2 million increase to the
multiyear capital projects budget (table 4).
The operating budget includes amounts to fund the Board’s ongoing operations (the current services budget) as well as new initiatives that support the
strategic themes identified in the Board’s Strategic Framework 2012–15 (see
www.federalreserve.gov/publications/gpra/files/2012-2015-strategicframework.pdf). Increases to the current services budget include additional
personnel services costs related to salaries and benefits expenses for 138 positions added in 2012, as well as increases for contractual professional services
to fund the Survey of Consumer Finances, which is conducted every three
years. Every division and office, as part of the budget formulation process,
thoroughly reviewed its proposed budget to identify where potential savings
could be realized. These reductions were incorporated into the divisions’
base budgets.

2013

15

Table 4. Operating expenses and capital expenditures of the Board of Governors,
2011–13
Millions of dollars, except as noted
Item
Board of Governors
Office of Inspector General
Single-year capital expenditures3
Multiyear capital projects4

2011
(budgeted)1

2011
(actual)

2012
(budgeted)2

2012
(actual)

2013
(budgeted)

475.2
18.0
6.2
31.9

440.4
11.9
5.0
23.4

511.8
20.6
17.9
25.1

497.4
14.9
13.5
12.5

560.0
26.9
11.0
261.2

Note: Components may not sum to totals and may not yield percentages shown because of rounding.
During 2011, the Board approved a $0.4 million decrease in the Board’s initial operating budget of $475.6 million, a
$0.7 million increase in the Board’s single-year capital budget, and a $12.2 million increase in the Board’s multiyear
capital budget.
2
During 2012, the Board approved a $2.2 million increase in the Office of Inspector General’s multiyear capital budget.
3
Beginning in 2010, the Board began budgeting and reporting projects that span multiple budget cycles separate from
single-year capital projects. Capital, as shown in this report, includes the Board and Office of Inspector General
capital budgets and expenses.
4
Budget figures for multiyear capital projects represent annual changes to total project budgets.
1

Initiatives submitted by divisions and offices for 2013 underwent a different
review process than in previous years. To be considered for approval, all budget requests had to be firmly grounded in the strategic framework. Initiatives
that clearly supported themes and objectives described in the framework
were approved and included in the 2013 budget request, whereas initiatives
not identified in the strategic plan were referred back to the division to either
self-fund or identify an alternative method of achieving the initiative’s objectives. The approved 2013 operating budget includes $14.7 million in new initiatives to support several themes of the strategic framework. The bulk of the
initiatives are for personnel to support implementation of strategic theme 1
(continue building a robust infrastructure for regulation, supervision, and
monitoring risks to financial stability) and for contractual support to implement the data center project identified as an objective under strategic theme
3 (establish a modern, safe work environment).
The Board’s 2013 single-year capital budget of $10.8 million is for routine
equipment and software replacements. This represents a decrease of
$6.3 million from the 2012 single-year capital budget. No initiatives were
requested for 2013 that required additional single-year funds. The increase in
multiyear capital provides funding for the data center relocation, Martin
Building renovation, and human–resources-related automation projects.

Office of Inspector General
For 2013, the Board approved the OIG’s $26.9 million operating budget and
its $0.2 million single-year capital budget. The operating budget includes

16

Annual Report: Budget Review

amounts to establish regional offices, full-year costs for two new positions
authorized in 2013, and overhead costs previously included in the Board’s
operating expenses.

Authorized Positions
The Board’s 2013 budget includes 2,540 authorized positions, representing a
2.9 percent increase over year-end 2012 total authorized positions (table 5).
The 2013 initiatives include requests to increase staffing by 72 positions. The
requested positions are consistent with the approved strategic framework and
are primarily in support of the Board’s new financial stability and supervisory mandate under the Dodd-Frank Act. Sixty-nine of the requested positions, representing 95.8 percent of the total increase, are in the economics
divisions, the Division of Banking Supervision and Regulation, the Division
of Reserve Bank Operations and Payment Systems, and the Legal Division.
These positions will help the Board to continue building the infrastructure
envisioned in strategic theme 1 using an interdisciplinary approach that combines the skills of economists, legal experts, quantitative analysts, and regulatory experts. The remaining three positions are in the Office of the Chief
Operating Officer to support strategic theme 2 (redesign data governance
and management processes to enhance the Board’s data environment).
The OIG’s 2013 budget includes 115 authorized positions, an increase of 2
positions from the prior year, to address specific needs identified during
workforce planning efforts.
Table 5. Positions authorized at the Board of Governors, 2011–13
Position count1
Item

Board of Governors2
Office of Inspector General

2011
(budgeted)

2011
(ending)

2012
(budgeted)

2012
(ending)

2013
(budgeted)

2,331
85

2,363
85

2,442
113

2,468
113

2,540
115

Note: Includes only those divisions, offices, and special accounts that have authorized position counts.
1
Interns are not included in the numbers for positions or employment.
2
The counts (budgeted and ending) for 2011 include positions for cooperative education, worker trainee, and student
aide programs that assist divisions Boardwide.

Areas of Risk
The Board faces three main areas of risk in its 2013 budget. The first relates
to resource-management and process refinement under its new strategic
framework. The Board’s strategic framework outlines the associated resource
requirements and a budgetary growth target that will guide the Board’s

2013

17

financial approach for implementing the strategic themes. Achieving the
framework’s goals and objectives depends on keeping resources focused on
the highest priorities while also increasing operating efficiencies and reducing
administrative burden. Management has begun redesigning processes to
achieve these objectives. However, establishing a new budgetary paradigm
that strengthens financial discipline and creates opportunities for cost reductions will require time and sustained commitment across the organization.
The second area of risk relates to workforce issues. Workforce risks to the
2013 budget remain largely consistent with those identified during the prior
year. In particular, the Board’s ability to attract and retain qualified staff—
both to meet the challenges associated with implementing Dodd-Frank Act
requirements and to continue to meet the demands of other ongoing work
requirements—remains a concern for a variety of reasons. First, the Board
will continue to face challenges in finding and hiring qualified staff because
of increasingly competitive markets in the federal and private sectors. Furthermore, divisions and offices will face the challenge of effectively integrating the number of positions approved in the 2013 budget.
The third area of risk relates to maximizing the efficiency and effectiveness
of data management at the Board. Over the next few years, significant investments in the Board’s data environment will be required. Indeed, significant
requests for additional data in support of supervisory activities have been
made in previous budget cycles. If data management does not become more
efficient and effective, then staff may encounter difficulties in obtaining,
interpreting, and analyzing large volumes of data that new supervisory tools
will require.

19

Federal Reserve Bank Budgets

The 2013 operating budgets of the 12 Reserve Banks total $3,688.2 million.
The 2013 budget is $226.1 million, or 6.5 percent, above 2012 actual
expenses. The growth continues to be driven by increases in central bank
functions, primarily in supervision, for portfolio growth, workload demand,
national initiatives to improve the function’s analytical capabilities, and
ongoing support of the Dodd-Frank Act. In addition, the cash function
expenses are increasing due to the CashForward automation project, and the
monetary policy function is expanding to meet evolving policy and financial
stability responsibilities.9 In Treasury services, expenses are rising due to
increased demand from the Treasury. These increases are partially offset by
decreases in priced services as a result of continued declines in check volume
and improved operational efficiencies in check processing.

Table 6. Operating expenses of the Federal Reserve Banks, net of receipts and claims
for reimbursement, 2012 and 2013
Millions of dollars, except as noted

Item

Total operating expenses
Less
Revenue from priced services
Claims for reimbursement1
Other income
Equals
Net expenses

2012
(actual)

2013
(budgeted)

3,462.1

Change
Amount

Percent

3,688.2

226.1

6.5

449.8
506.4
2.2

423.9
539.4
2.2

-25.9
33.0
-0.1

-5.8
6.5
-2.6

2,503.6

2,722.7

219.1

8.8

Note: Excludes capital outlays. Includes expenses budgeted by the Federal Reserve Information Technology and Office of
Employee Benefits. Expenses from these entities have been charged to the Reserve Banks, as appropriate, and included
in their budgets. Components may not sum to totals and may not yield percentages shown because of rounding.
Operating expenses reflect redistributions for support costs and allocation of overhead costs.
1
Costs of fiscal agency and depository services provided to the U.S. Treasury, other government agencies, and other
fiscal principals.

9

CashForward is a cash automation platform that will replace legacy software applications,
automate business processes, and employ technologies to meet current and future needs for
the cash function.

20

Annual Report: Budget Review

Table 7. Employment at the Federal Reserve Banks, FRIT, and OEB, 2012 and 2013
Average number of personnel, except as noted

Item

Reserve Banks
Federal Reserve Information Technology (FRIT)
Office of Employee Benefits (OEB)
Total

2012
(actual)

2013
(budgeted)

17,056
1,196
48
18,300

17,400
1,202
53
18,656

Change
Amount

Percent

344
6
5
356

2.0
0.5
11.1
1.9

Note: Components may not sum to totals and may not yield percentages shown because of rounding. See text note 6 for
definition of average number of personnel.

Budgeted net expenses for 2013, after revenue and reimbursements, are
expected to increase by $219.1 million, or 8.8 percent, over actual 2012 net
expenses (table 6). Approximately 26 percent of Reserve Bank expenses in
the 2013 budget are offset by either priced service revenues (11.5 percent) or
reimbursable claims for services provided to the Treasury and other agencies
(14.6 percent).10 Budgeted 2013 priced services revenue is 5.8 percent lower
than the 2012 actual level, reflecting continued declines in check volume as
customers shift to other payment methods. Reimbursable claims are expected
to increase 6.5 percent in 2013, reflecting increased activity on new or
expanded Treasury projects.
Total 2013 projected employment for the Reserve Banks, FRIT, and OEB is
18,656 ANP, an increase of 356 ANP, or 1.9 percent, from the 2012 actual
staff level (table 7). Staffing levels in 2013 are projected to increase, primarily
driven by supervision and information technology (IT). The supervision
function is increasing as resources are added to support portfolio growth,
expanded supervisory responsibilities resulting from the implementation of
the Dodd-Frank Act, and initiatives to improve the function’s analytical
capabilities and infrastructure. IT is also a significant driver of increased
staffing in order to transition to a consolidated IT services delivery model
and to support information security efforts. These increases are offset by a
significant decline in check staff with the consolidation of check processing,
the implementation of a more efficient check processing platform, and continued volume declines.
From 2003 to 2010, total staffing levels consistently decreased, primarily as a
result of the multiyear restructuring efforts in the check-processing function.
During this period, staffing reached its lowest level of 17,459 ANP in 2010.
10

Reimbursable claims include the costs of fiscal agency and depository services provided to the
U.S. Treasury, other government agencies, and other fiscal principals to whom actual costs are
billed and reimbursed by those entities.

2013

21

Subsequent staffing increases have been primarily driven by two factors:
First have been additions—mainly in supervision—spurred initially by the
need to address the financial crisis; then beginning in 2011, to implement the
Dodd-Frank Act; and most recently, to accommodate portfolio growth. Second has been growth in IT and in monetary policy.

2012 Budget Performance
Total 2012 actual expenses were $3,462.1 million, which represents an
increase of $16.0 million, or 0.5 percent, from the approved 2012 budget of
$3,446.1 million.11 Total 2012 actual staffing was 18,300 ANP, an increase of
198 ANP from 2012 budgeted levels of 18,102 ANP.
The 2012 budget overrun is primarily driven by supervision due to accelerated hiring to meet the responsibilities of the Dodd-Frank Act, additional
resources required to support portfolio growth and increased workload, and
the initiative to implement a new supervisory framework ($24.0 million).
The overrun in monetary policy is driven by increased support cost charges
related to IT services, protection, and facilities. Offsetting these increases are
lower personnel expenses resulting from hiring delays for staff with specialized skills ($11.1 million).
Treasury services are slightly over budget due to the Treasury’s request to
expand several existing programs, such as Government-Wide Accounting
and Do Not Pay, and to support new programs such as the Post Payment
System ($2.6 million).12 These increases are partially offset by the completion
of the Treasury Collateral Management and Monitoring application development project, decline in call volume associated with the Go Direct initiative, and shift in the timing of other initiatives.13

11

12

13

The final 2012 budget of $3,441.3 million was approved by the Board in December 2011. In
May 2012, the Board approved an additional $4.8 million for employee equity adjustments.
The Government-Wide Accounting program will streamline and modernize the federal government’s central accounting and reporting systems to enable better financial management
across the government. The Do Not Pay program was established to reduce the number of
improper payments made through major programs administered by the federal government.
The Post Payment System will streamline post-payment processes and eliminate redundant
functionality by consolidating several existing applications into a single, centralized system.
The Treasury Collateral Management and Monitoring application monitors collateral for the
three Treasury Fiscal Service collateral programs: Payment of Federal Taxes and the Treasury
Tax and Loan Program, Depositories and Financial Agents of the Federal Government, and
the Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties. Go Direct supports Treasury’s all-electronic initiative requiring that all federal benefit
payments be issued electronically by March 1, 2013.

22

Annual Report: Budget Review

Partially offsetting the overrun are decreased expenses in priced services
driven by the continued decrease in check operations (-$8.7 million). Additionally, expenses for services to financial institutions and the public (other
than priced services) are under budget primarily due to the refinement of
project costs and timing for the CashForward program and lower-thanexpected public programs costs resulting from shifts in project timing and
use of support services (-$8.2 million).
The overrun in total staffing of 198 ANP, as compared to the budget, reflects
staff additions in IT due to an increase in business-line IT projects, support
of information security enhancements, and the Reserve Banks’ serverconsolidation initiative (217 ANP). Additions in priced services are related to
greater-than-projected resource requirements necessary for the electronic
Check 21 environment and for the FedACH Technology Transition project
(36 ANP). The overrun in supervision is due to accelerated staffing to support Dodd-Frank Act responsibilities, portfolio growth, increased workload
demand, and the implementation of a new supervisory framework (36
ANP). Offsetting these overruns are decreases in the Treasury services function due to changes in the scope, timing, and alignment of projects (34 ANP)
and in cash due to operational efficiencies (24 ANP).

Initiatives Affecting the 2013 Budgets
For 2013, the Reserve Banks’ budgets reflect growth of $226.1 million, or
6.5 percent, compared to the 2012 actual in several initiatives, primarily in
supervision and monetary policy to address resource needs, and in Treasury
services and cash operations to fund modernization efforts. A majority of the
growth is driven by costs associated with the projected staff increases to support these initiatives. The growth is slightly offset by reductions in check
operations.

Central Bank Services
In the central bank services area, which includes supervision, services to
financial institutions and the public (other than priced services), and monetary policy, expenses are increasing $184.4 million, or 7.1 percent, compared
to 2012 actual expenses. The staffing level is increasing 253 ANP, or
3.3 percent.
The largest portion of the increase is in the supervision function, which is
increasing $89.7 million, or 8.5 percent, with a corresponding projected staffing growth of 179 ANP. This expansion is in response to portfolio growth
and expenses in support of infrastructure needs in a growing business function, as well as ongoing support of the Dodd-Frank Act. The expenses of

2013

23

the cash function are increasing $46.3 million, or 8.7 percent, and 23 ANP,
driven primarily by continued work on the CashForward project as it enters
a major development phase. Slightly offsetting the projected growth are
lower cash operation expenses due to continued operational efficiencies.
The total 2013 budget for monetary policy is increasing $39.1 million, or
6.9 percent. Staffing is increasing 37 ANP as several Reserve Banks add
resources to meet policy and research demands, as well as to meet expanded
responsibilities related to financial stability. Also adding to the expense
increase are investments in data and data analytical tools to support policy
and research demands.
The increases in central bank services expenses are being partially offset by a
decrease of $4.5 million, or 5.3 percent, in expenses related to the loans to
depository institutions and others function—primarily at the Federal
Reserve Bank of New York—as a result of staffing reductions of 19 ANP
and lower professional service fees following the ongoing wind down of the
financial stability liquidity facilities created in response to the financial crisis.14

Treasury-Related Functions
The budgeted expenses for services to the Treasury, which are fully reimbursable, are increasing $45.4 million, or 9.5 percent, as a result of large growth
in work on several Treasury projects. These include the continuation of the
Do Not Pay project, the accelerated and expanded Invoice Processing Platform, and the new Payment Information Repository and Financial Information Repository projects.15 Overall staffing for the Treasury function is budgeted to increase by 38 ANP in support of these initiatives.

Priced Services
Total priced services expenses are declining $3.7 million, or 1.0 percent, from
2012 actual expenses. The major driver is check operation costs, which are
decreasing $20.8 million, or 12.7 percent. This decline reflects lower costs
associated with the consolidation of check operations to the Federal Reserve
14

15

Although most of the liquidity programs have ended, the Federal Reserve Bank of New York
continues to incur costs for several liquidity programs, including Maiden Lane, Maiden Lane
II, Maiden Lane III, and Term Asset-Backed Securities Loan Facility.
The Invoice Processing Platform is a secure, web-based system that manages the government’s invoicing processes. The Payment Information Repository is a central repository for all
federal payment transaction data and will be used by Treasury and federal agencies. The
Financial Information Repository is a platform that will consolidate federal government
financial information from its various business lines and provide summarized, aggregated,
and detailed financial information.

24

Annual Report: Budget Review

Bank of Atlanta and efficiencies from the implementation of the check processing platform modernization initiative. Check staffing levels have a corresponding decrease of 119 ANP, or 24.4 percent, in the 2013 budget. Partially
offsetting this decrease is an increase of $10.9 million, or 9.5 percent, for the
Fedwire funds and securities services, primarily due to work for the Fedwire
Modernization program.16 Full cost recovery is projected in the aggregate for
the priced services in 2013.

Support Services
Support costs are increasing $44.2 million, or 4.1 percent, and 78 ANP. The
expense increases are driven primarily by IT ($11.7 million), law enforcement
($8.4 million), and facilities ($7.5 million). IT costs are increasing mainly as a
result of application development in support of cash, Treasury, and priced
services projects at the Reserve Banks. The increases in law enforcement and
facilities are primarily driven by infrastructure improvements and accommodations for staff growth, respectively.

2013 Personnel Expenses
Budgeted Reserve Bank officer and staff salaries and other personnel
expenses for 2013 total $2,040.6 million, an increase of $145.1 million, or
7.7 percent, over 2012 actual expenses. The increase reflects costs associated
with additional staff and budgeted salary administration, including merit
increases, equity adjustments, promotions, and funding for variable pay.
Congress enacted legislation prohibiting statutory pay adjustments for most
federal civilian employees beginning in January 2011, and in 2012, extended
the freeze through March 27, 2013. Although not required to do so under
the legislation, the Reserve Banks complied with the spirit of the civilian federal government salary freeze enacted by Congress and interpreted in subsequent Office of Personnel Management guidance, which permits increases
for staff (but not officers) under performance-based compensation systems
such as those used by the Reserve Banks. The 2013 Reserve Bank budgets
reflect a 3.0 percent merit program, effective January 1 for eligible staff and
April 1 for eligible officers and senior professionals ($44.6 million).
The 2013 budgets also include funding for equity adjustments, promotions,
and variable pay. Equity adjustments and promotions total $7.3 million for
officers and senior professionals and $18.7 million for staff. Funding for vari16

The Fedwire Modernization initiative is a large-scale, multiyear IT project, the goal of which
is to transition the applications that support the Fedwire Funds and Fedwire Securities businesses from the legacy mainframe environment to a distributed platform.

2013

25

able pay programs for officers and staff totals $147.1 million, with incremental funding used to address targeted needs in certain areas.17

Risks in the 2013 Budgets
The most significant risks in the 2013 budget are related to staffing. Reserve
Banks have identified the attraction and retention of qualified staff as potentially challenging, particularly in locations where the employment market is
improving. Most Reserve Banks have aggressive hiring plans, and some
Banks may experience difficulty meeting schedules for hiring staff with specialized skills and experience, particularly in supervision and IT.
An additional area of budgetary risk involves large-scale automation programs, which are subject to changes in schedules that could cause significant
expense variances in 2013. Treasury requests for additional work could also
occur. Moreover, the Federal Reserve Bank of New York will be incurring
costs in 2013 related to Treasury’s planned issuance of floating-rate notes.

2013 Capital Budgets
The 2013 capital budgets submitted by the Reserve Banks, FRIT, and OEB
total $492.1 million, a $5.3 million—or 1.1 percent—decrease from the 2012
actual levels.18 The capital budgets include funding for projects to support
strategies that improve operational efficiencies, enhance services to Bank customers, and ensure a safe and productive work environment. In support of
these strategies, the 2013 budgets include three categories of capital initiatives: Reserve Bank automation projects, building and infrastructure, and
Treasury initiatives.
The Reserve Banks and FRIT included $236.4 million in funding for major
IT initiatives and Reserve Bank automation projects. Multiyear projects currently underway to migrate major applications off the mainframe represent
$43.7 million of the 2013 capital budget.19 Cash services initiatives represent
17

18

19

The 2013 Reserve Bank salary administration budgets reflect no merit or equity funding for
officers and senior professionals (and no base-salary changes for presidents) during the first
quarter of the year. The Reserve Banks are not authorized to distribute the budgeted 2013
officer merit and equity funds until approved to do so by the chair of the Board’s Committee
on Federal Reserve Bank Affairs.
The 2012 actual capital outlays were $93.3 million over the 2012 budget, primarily due to the
Federal Reserve Bank of New York’s unbudgeted purchase of the 33 Maiden Lane building
in February 2012.
The Reserve Bank migration strategy involves moving a majority of applications from the
mainframe to alternate processing environments. Projects included in the 2013 budget include
the migration of the Fedwire, FedACH, accounting, and statistics/reserves systems.

26

Annual Report: Budget Review

$79.3 million of the total capital budgets, including $36.3 million for the
CashForward project and $21.4 million for cash sensor upgrades. The
Reserve Bank server-consolidation effort and related network services
account for an additional $9.2 million. The remaining budgets will fund
other initiatives, such as data security, scheduled software and equipment
upgrades, as well as telecommunications and LAN equipment for renovated
or expanded office space.
Building and infrastructure projects represent $207.8 million of the proposed
capital budgets. Over half of the total building capital is related to projects in
the Federal Reserve Banks of Boston, New York, Chicago, and San Francisco, including new initiatives in Chicago to increase security and in Boston
for reclamation of tenant space for the Bank’s use. Other significant projects
include the acquisition of emergency generators and uninterruptible power
supply equipment at several Banks. The remaining outlays in this category
will fund other building renovation and refurbishment projects and various
facility improvement projects.
The capital budgets also include $47.9 million for reimbursable Treasury initiatives, including support of Treasury Web Application Infrastructure,
Treasury E-Services, Government-Wide Accounting, Post Payment System,
and various other projects.

27

Currency Budget

Each year, under authority delegated by the Board, the director of the Division of Reserve Bank Operations and Payment Systems orders new currency
from the Treasury’s Bureau of Engraving and Printing (BEP). Upon reviewing the order, the BEP estimates printing costs for new currency during the
calendar year, which Board staff uses to prepare the annual budget for new
currency. Each month, the Board assesses the costs of new currency to each
Federal Reserve Bank.

2012 Budget Performance
The cost for new currency during calendar-year 2012 totaled $721.1 million,
which represents a decrease of $26.0 million, or 3.5 percent, from the 2012
budget. The decrease is primarily because of a reduction in Federal Reserve
note printing and currency transportation costs. In February 2012, the director of the Division of Reserve Bank Operations and Payment Systems modified the fiscal year 2012 print order by increasing the number of currentdesign $100 notes by 400 million to meet heightened demand and reducing
the amount of new-design $100 notes by the same amount. This modification resulted in no change to the total number of notes in the order, but
decreased the number of more-expensive new-design $100 notes, thereby
reducing expenses by nearly $13 million.20 Expenses were reduced further
when the BEP refunded approximately $6.9 million to the Board as part of
the transfer of the currency education program from the BEP to the Board.21
Additionally, transportation expenses were $13.5 million under budget primarily because the Board did not ship as many new-design $100 notes as it
had budgeted.

20

21

The variable cost of production for the current-design $100 note is $29.04 per thousand notes
compared with $60.92 for the new-design $100 note.
The Board assumed responsibility from the BEP for the currency education program on
October 1, 2011. However, because the Board operates on a calendar-year basis, it continued
to provide funding to the BEP for the currency education program through the end of 2011.
The BEP then provided a refund to the Board in 2012 because the BEP did not incur
expenses associated with the program during that time.

28

Annual Report: Budget Review

2013 Budget
The approved 2013 new currency budget of $797.6 million is 10.6 percent
higher than 2012 costs (figure 5). Printing costs for Federal Reserve notes
comprise about 92 percent of the new currency budget. Expenses for currency transportation, the currency quality assurance (CQA) program, the
currency education program (CEP), and counterfeit-deterrence research
comprise the remaining 8 percent (table 8).

Figure 5. Federal Reserve costs for new currency, 1999–2013
Millions of dollars

800
700
600
500
400
300
200
100
0
1999

2001

2003

2005

2007

2009

2011

2013

Note: For 2013, budgeted.

Table 8. Federal Reserve budget for new currency, 2012 and 2013
Thousands of dollars, except as noted
Change
Item

2012 (actual)

2013 (budgeted)
Amount

BEP-related expenses
Printing Federal Reserve notes
Other
Board expenses
Currency transportation
Currency quality assurance
Currency education program
Counterfeit-deterrence research
Total cost of new currency
BEP Bureau of Engraving and Printing.

Percent

687,705
3,132

734,774
3,435

47,069
303

6.8
9.7

17,180
7,260
482
5,316
721,074

30,697
13,400
9,512
5,782
797,600

13,517
6,140
9,030
466
76,525

78.7
84.6
1,874.2
8.8
10.6

2013

29

Printing of Federal Reserve Notes
The cost for printing the calendar-year 2013 currency order is budgeted at
$734.8 million, a 6.8 percent increase over the cost for the 2012 order. The
average cost per thousand notes also increased 3.5 percent from $88.73 in
2012 to $91.81 in 2013. The increase is primarily attributable to a higher volume of more-expensive new-design $100 notes included in the 2013 budget
compared with 2012. As the country’s highest denomination note, the $100
note is a prime target of counterfeiters around the world; the new-design
notes are the most expensive of all U.S. notes to produce because they contain new security features to deter counterfeiting.

Currency Transportation
The 2013 currency transportation budget is $30.7 million, which includes the
costs of shipping new currency from the BEP’s two facilities to the Reserve
Banks, of shipping fit and unprocessed currency between Reserve Banks,
and of returning currency pallets to the BEP.
The 2013 budget for currency transportation increased nearly 80 percent
from 2012 costs. More than 95 percent of the difference between the 2013
budget and 2012 estimate ($13 million) is attributable to costs associated
with shipping 2.5 billion new-design $100 notes from the BEP’s two facilities
to each of the Federal Reserve offices in preparation for issuance.

Currency Quality Assurance Program
The 2013 currency quality assurance program budget is $13.4 million. During 2010, the Board hired a consulting firm to assist with the development
and implementation of a comprehensive currency quality assurance program
for the BEP. During 2013, the consultants will continue to facilitate the
implementation of the new quality system for the BEP, support the newdesign $100 note issuance by ensuring the BEP produces a sufficient quantity
of notes that meet agreed-upon quality standards, and provide temporary
resources to the BEP to sustain critical aspects of the quality system.

Currency Education Program
The 2013 currency education program budget is $9.5 million. The goal of the
program is to provide information on the design and security features of
Federal Reserve notes to users worldwide. To do that, the program is focused
on ensuring that users of U.S. currency know what genuine Federal Reserve
notes look like, are aware of the security features in each denomination, and
know how to use those security features to distinguish between genuine and

30

Annual Report: Budget Review

counterfeit notes. In addition to these general currency-education-related
tasks, in 2013, the currency education program will dedicate significant
resources to education efforts in support of the new-design $100 note.
Because there are currently more than 8 billion $100 notes in circulation
worldwide, the currency education program must reach a diverse global
population to ensure a smooth transition to the new design.

Counterfeit-Deterrence Research
The 2013 budget for counterfeit-deterrence research is $5.8 million, which
includes costs associated with the Central Bank Counterfeit Deterrence
Group and the Reprographic Research Center. The Central Bank Counterfeit Deterrence Group, established by the Governors of the G10 central
banks to combat digital counterfeiting, is a consortium of 32 central banks
and monetary authorities that issue bank notes. The Board’s $5.5 million
share of the 2013 Central Bank Counterfeit Deterrence Group budget comprises 95 percent of the Federal Reserve’s counterfeit-deterrence budget. The
remaining 5 percent reflects additional research toward increasing security
features of Federal Reserve notes.

Other Reimbursements to the Bureau of Engraving
and Printing
The 2013 budget includes $3.4 million to reimburse the BEP for expenses
incurred by its Destruction Standards and Compliance Division of the
Office of Compliance and Mutilated Currency Division of the Office of
Financial Management. The Office of Compliance develops Reserve Bank
standards for cancellation and destruction of unfit currency and for note
accountability, and reviews Reserve Banks’ cash operations for compliance
with its standards. As a public service, the Mutilated Currency Division processes claims for the redemption of damaged or mutilated currency.

31

Appendix A

Federal Reserve Budget Processes

The budgets for the Board of Governors, the Federal Reserve Banks, and
currency are separate, and each has its own budget process.

Board of Governors
The Board’s budget covers one calendar year, and the budget process is as
follows:
• The Board’s budget is structured by division, office, or special account (see
appendix B, table B.1 on page 35).
• The Board establishes a base budget to support current operations.
• Each division identifies new initiatives required to achieve its objectives for
the next budget cycle as well as potential savings from its ongoing
operations.
• The Board’s chief operating officer, chief financial officer, and the Executive Committee of the Board evaluate each new initiative and proposed
savings in the context of the Board’s strategic framework.
• New initiatives not aligned with the themes identified in the strategic
framework require savings offsets.
• Staff submits the proposed budget to the Committee on Board Affairs
(CBA) for review.
• The CBA submits the budget to the Board for review and final action.
• Monthly expenses are compared with budgets by division and accounting
classification. Variances are analyzed and reported.
The Board’s Office of Inspector General (OIG), in keeping with its statutory
independence, prepares its proposed budget apart from the Board’s budget.
The OIG presents its budget directly to the Chairman for action by the
Board.

32

Annual Report: Budget Review

Federal Reserve Banks
The Reserve Banks’ budgets cover one calendar year. Annually, each Reserve
Bank establishes major operating goals for the coming year, devises strategies
for attaining those goals, estimates required resources, and monitors results.
The Reserve Banks’ budgets are structured by operational area, with support
and overhead attributable to each area and charged to that area.
The financial performance of the Reserve Banks are monitored throughout
the year by way of a cost-accounting system, the Planning and Control
System (PACS). Under PACS, the costs of all Reserve Bank functions are
grouped by operational area, and the associated costs of support and overhead are charged to these areas accordingly. Apart from the budget approval
process, the Reserve Banks must submit proposals for major capital acquisitions and projects to the Board for further review and approval.
Following is a summary of the Reserve Bank budget process:
• Business area leaders provide budget guidance to the Reserve Banks for the
upcoming budget year.
• The Reserve Banks develop early budget projections that incorporate the
business leader guidance provided. The budgets are reviewed by senior
leadership in the Reserve Banks for consistency with the System direction.
• The Reserve Banks submit preliminary budget information to the Board
for review, including documentation to support the budget request.
• Board staff analyzes the Banks’ budgets, both individually and in the context of Systemwide initiatives and other Banks’ plans.
• The Committee on Federal Reserve Bank Affairs (BAC) reviews the Bank
budgets.
• The Reserve Banks make any requested or needed changes to the budgets,
and the revised projections are submitted to the Board.
• Staff submits the proposed budgets to the BAC for review and the Board
for review and final action.
• Throughout the year, Reserve Bank and Board staff compare actual performance to budgeted projections.

Currency
The currency budget covers one calendar year. On a monthly basis, Board
staff monitors payments of currency to and receipts of currency from circu-

2013

33

lation and the number of unfit notes destroyed at the Reserve Banks. Board
staff estimates the number of notes the Board will order from the Bureau of
Engraving and Printing (BEP) to meet demand based on monthly monitoring and forecasts of growth rates for payments of currency to circulation and
receipts of currency from circulation. Historically, more than 90 percent of
the notes that the Board orders each year replace unfit currency that Reserve
Banks receive from circulation.
The currency budget process is as follows:
• Each August, based on Board staff’s assessment of currency demand, the
director of the Division of Reserve Bank Operations and Payment Systems
submits a fiscal year print order for currency to the director of the BEP.
• Each December, Board staff estimates expenses for the currency budget,
including printing expenses (based on estimated production costs provided
by the BEP); certain other BEP costs; and expenses for the currency education program, currency transportation, and counterfeit-deterrence
research.
• The BAC reviews the new currency budget.
• Board staff makes any requested or needed changes to the new currency
budget and the revised budget is submitted to the Board.
• Staff submits the proposed new currency budget to the BAC for review
and to the Board for final action.
• Throughout the year, Board staff compares actual performance to budgeted projections.

35

Appendix B

Expenses and Employment at the
Board of Governors
Table B.1. Operating expenses of the Board of Governors, by division, office,
or special account, 2011–13
Millions of dollars
Division, office, or special account
Board Members
Secretary
Research and Statistics
International Finance
Monetary Affairs
Office of Financial Stability Policy and
Research
Bank Supervision and Regulation
Consumer and Community Affairs
Legal
Chief Operating Officer2
Financial Management2
Reserve Bank Operations and Payment
Systems
Staff Director3
Information Technology
Management
Data processing income
Residual retirement
Special projects
Savings and reallocations
Extraordinary items
Total, Board operations
Office of Inspector General

2011
(budgeted)1

2011
(actual)

2012
(budgeted)

2012
(actual)

2013
(budgeted)

18.7
8.6
57.9
22.0
23.6

17.5
8.4
55.5
20.1
21.5

24.8
8.9
60.3
22.7
27.7

24.8
9.0
58.6
22.3
26.1

26.9
9.4
64.3
25.1
30.9

2.7
75.0
26.4
21.1
0.0
0.0

1.8
73.8
23.6
18.7
0.0
0.0

3.4
91.4
23.4
20.3
0.0
0.0

3.4
92.9
22.4
19.9
0.1
0.0

4.9
102.6
24.1
22.7
3.0
9.5

32.0
11.6
69.0
107.7
-28.8
12.9
14.3
0.0
0.5
475.2

30.0
10.6
65.8
101.6
-29.0
6.8
13.4
0.0
0.3
440.4

33.7
0.0
78.4
123.3
-33.8
10.4
14.8
0.7
1.5
511.8

33.4
0.0
76.1
118.6
-35.0
11.2
12.2
0.0
1.5
497.4

33.9
0.0
81.6
110.8
-36.5
14.7
17.9
-1.9
16.0
560.0

18.0

11.9

20.6

14.9

26.9

Note: Components may not sum to totals and may not yield percentages shown because of rounding.
During 2011, the Board approved a $0.4 million decrease in the Board’s initial operating budget of $475.6 million, a
$0.7 million increase for the Board’s single-year capital budget, and a $12.2 million increase in the Board’s multiyear
capital budget.
2
Effective October 16, 2012, select office functions, including positions within the Management Division, were
reallocated to formally establish the Office of the Chief Operating Officer and the Division of Financial Management.
3
Effective January 1, 2012, the Office of Staff Director was abolished, and office functions were reallocated to other
divisions.
1

36

Annual Report: Budget Review

Table B.2. Operating expenses of the Board of Governors, by account classification,
2011–13
Millions of dollars
Account classification
Personnel services
Salaries
Retirement/thrift plans
Employee insurance
Subtotal, salaries and benefits
Goods and services
Postage and shipping
Travel
Telecommunications
Printing and binding
Publications
Stationery and supplies
Software
Furniture and equipment
Rentals
Books and subscriptions
Utilities
Repairs and alterations bldg.
Repairs and maintenance F&E
Contingency processing center
Contractual professional services
Interest expense
Tuition
Subsidies and contributions
Depreciation/amortization
All other2
Subtotal, goods and services
Total, Board operations
Office of Inspector General

2011
(budgeted)1

2011
(actual)

2012
(budgeted)

2012
(actual)

2013
(budgeted)

278.1
37.8
27.0
343.0

266.7
35.3
21.0
323.0

294.1
38.4
24.6
357.1

289.4
39.8
25.2
354.3

314.3
43.3
28.9
386.5

0.7
12.8
5.0
2.1
0.8
1.6
10.8
9.2
8.4
1.0
4.0
3.0
2.2
1.3
45.5
0.0
4.4
0.8
18.1
0.4
132.1
475.2

0.5
14.2
4.8
1.6
0.7
1.7
9.3
7.1
6.6
0.8
3.9
2.5
2.2
1.2
37.1
0.0
3.8
0.5
19.4
-0.7
117.4
440.4

0.8
13.4
6.9
2.3
0.6
1.6
11.6
9.0
16.1
1.1
3.9
3.1
2.3
1.4
54.7
0.1
4.6
0.8
20.5
-0.3
154.7
511.8

0.5
14.5
5.9
1.6
0.5
1.7
10.8
7.6
14.4
1.0
3.2
2.9
2.8
1.2
50.5
0.0
3.8
0.7
21.9
-2.3
143.1
497.4

0.7
14.2
7.4
2.4
0.6
1.6
12.1
9.7
12.8
1.1
3.9
3.0
2.9
1.3
71.8
0.0
4.9
0.8
24.1
-1.8
173.5
560.0

18.0

11.9

20.6

14.9

26.9

Note: Components may not sum to totals and may not yield percentages shown because of rounding.
During 2011, the Board approved a $0.4 million decrease in the Board’s initial operating budget of $475.6 million, a
$0.7 million increase for the Board’s single-year capital budget, and a $12.2 million increase in the Board’s multiyear
capital budget.
2
All other includes, among other items, income from outside agencies for data processing services, rental income, and
transportation subsidy benefits for employees.
1

2013

37

Table B.3. Positions authorized at the Board of Governors, by division, office,
or special account, 2011–13
Position count1
Division, office, or special account

Board Members
Secretary
Research and Statistics
International Finance
Monetary Affairs
Office of Financial Stability Policy and Research
Bank Supervision and Regulation
Consumer and Community Affairs
Legal
Chief Operating Officer2
Financial Management2
Reserve Bank Operations and Payment Systems
Staff Director3
Information Technology
Management4
Total, Board operations
Office of Inspector General

2011
(budgeted)

2011
(ending)

2012
(budgeted)

2012
(ending)

2013
(budgeted)

89
51
324
124
112
12
328
95
94
…
…
151
49
369
533
2,331

90
53
325
124
110
14
347
99
94
…
…
154
50
369
534
2,363

115
53
341
129
120
19
383
103
99
…
…
154
…
397
529
2,442

115
53
341
129
144
21
383
103
99
2
…
154
…
397
527
2,468

115
53
353
136
144
34
412
103
105
16
67
156
…
397
449
2,540

85

85

113

113

115

Note: Includes only those divisions, offices, and special accounts that have authorized position counts.
1
Interns are not included in the numbers for positions or employment.
2
Effective October 16, 2012, select office functions, including positions within the Management Division, were
reallocated to formally establish the Office of the Chief Operating Officer and the Division of Financial Management.
3
Effective January 1, 2012, the Office of Staff Director was abolished, and functions of that office were reallocated to
other divisions.
4
The counts (budgeted and ending) for 2011 include positions for cooperative education, worker trainee, and student
aide programs that assist divisions Boardwide.
… Not applicable.

39

Appendix C

Expenses and Employment at the
Federal Reserve Banks
Table C.1. Operating expenses of the Federal Reserve Banks, by district, 2012 and 2013
Thousands of dollars, except as noted
Percent change
District

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

2012
(budgeted)1

2012
(actual)

2013
(budgeted)

2012 actual
compared
with 2012
budgeted

2013
budgeted
compared
with 2012
actual

177,787
848,775
181,466
158,730
342,474
314,935
307,724
234,700
172,645
195,327
207,152
304,337
3,446,053

180,536
875,085
177,948
152,230
355,672
306,022
306,344
234,030
173,046
193,624
207,758
299,786
3,462,081

207,175
896,777
198,951
158,372
372,699
318,710
326,131
258,046
189,561
214,515
214,455
332,772
3,688,165

1.5
3.1
-1.9
-4.1
3.9
-2.8
-0.4
-0.3
0.2
-0.9
0.3
-1.5
0.5

14.8
2.5
11.8
4.0
4.8
4.1
6.5
10.3
9.5
10.8
3.2
11.0
6.5

Note: Excludes capital outlays as well as assessments for the Board of Governors operating expenses, currency costs,
the Consumer Financial Protection Bureau, and the Office of Financial Research. Includes expenses budgeted by Federal
Reserve Information Technology and the System’s Office of Employee Benefits. Reflects all redistributions for support
and allocations for overhead. Components may not sum to totals and may not yield percentages shown because of
rounding.
1
The final 2012 budget of $3,441,287 thousand was approved by the Board in December 2011. In May 2012, the
Board approved an additional $4,767 thousand for employee equity adjustments, which is included in the 2012
budget number above.

40

Annual Report: Budget Review

Table C.2. Employment at the Federal Reserve Banks, by district, and at FRIT and OEB,
2012 and 2013
Average number of personnel
Amount change
District

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, all Districts
Federal Reserve Information
Technology (FRIT)
Office of Employee Benefits (OEB)
Total

2012
(budgeted)

2012
(actual)

2013
(budgeted)

2012 actual
compared
with 2012
budgeted

2013
budgeted
compared
with 2012
actual

968
3,254
917
973
1,506
1,593
1,425
1,006
1,109
1,343
1,340
1,568
17,003

975
3,336
893
979
1,493
1,596
1,441
1,007
1,126
1,384
1,254
1,573
17,056

1,080
3,326
944
908
1,541
1,630
1,490
1,066
1,147
1,430
1,239
1,599
17,400

7
81
-24
5
-14
3
16
2
17
41
-85
5
53

105
-9
51
-70
48
34
49
58
21
47
-16
25
344

1,048
51

1,196
48

1,202
53

147
-3

6
5

18,102

18,300

18,656

198

356

Note: The term average number of personnel (ANP) describes levels and changes in employment. ANP is the average
number of employees in terms of full-time positions for the period. For instance, a full-time employee who starts work
on July 1 counts as 0.5 ANP for that calendar year; two half-time employees who start on January 1 count as 1 ANP.
Components may not sum to totals and may not yield variances shown because of rounding.

2013

41

Table C.3. Operating expenses of the Federal Reserve Banks, FRIT, and OEB,
by operational area, 2012 and 2013
Thousands of dollars, except as noted
Percent change
Operational area

Monetary and economic policy
Services to the U.S. Treasury and other
government agencies
Services to financial institutions and
the public
Supervision and regulation
Fee-based services to financial
institutions
Total
Salary administration adjustments1
Revised total

2012
(budgeted)

2012
(actual)

2013
(budgeted)

2012 actual
compared
with 2012
budgeted

2013
budgeted
compared
with 2012
actual

552,149

563,260

602,317

2.0

6.9

474,653

477,269

522,712

0.6

9.5

985,700
1,032,540

977,472
1,056,582

1,033,104
1,146,259

-0.8
2.3

5.7
8.5

396,244
3,441,287
4,767
3,446,054

387,497
3,462,081

383,773
3,688,165

-2.2
0.6

-1.0
6.5

3,462,081

3,688,165

0.5

6.5

Note: Excludes capital outlays as well as assessments for the Board of Governors operating expenses, currency costs,
the Consumer Financial Protection Bureau, and the Office of Financial Research. Includes expenses budgeted by Federal
Reserve Information Technology (FRIT) and the Office of Employee Benefits (OEB). Reflects all redistributions for support
and allocations for overhead. Components may not sum to totals and may not yield percentages shown because of
rounding.
1
The final 2012 budget of $3,441,287 thousand was approved by the Board in December 2011. In May 2012, the
Board approved an additional $4,767 thousand for employee equity adjustments, which is included in the 2012
budget number above.

42

Annual Report: Budget Review

Table C.4. Employment at the Federal Reserve Banks, and at FRIT and OEB,
by operational area, 2012 and 2013
Average number of personnel
Amount change
Operational area

Monetary and economic policy
Services to U.S. Treasury and other
government agencies
Services to financial institutions and
the public
Supervision and regulation
Fee-based services to financial institutions
Support and overhead
Total

2013
budgeted
compared
with 2012
actual

2012
(budgeted)

2012
(actual)

2013
(budgeted)

2012 actual
compared
with 2012
budgeted

1,236

1,223

1,259

-14

37

1,104

1,071

1,108

-34

38

2,625
3,688
803
8,645
18,102

2,579
3,725
840
8,862
18,300

2,605
3,904
720
9,059
18,656

-45
37
37
217
198

26
179
-120
196
356

Note: Components may not sum to totals and may not yield variances shown because of rounding.
FRIT Federal Reserve Information Technology.
OEB Office of Employee Benefits.

2013

43

Table C.5. Expenses of the Federal Reserve Banks for salaries of officers and
employees, by district, 2012 and 2013
Thousands of dollars, except as noted
Percent change
District

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, all Districts
Federal Reserve Information
Technology (FRIT)
Office of Employee Benefits (OEB)
Total

2012
(budgeted)1

2012
(actual)

2013
(budgeted)

2012 actual
compared
with 2012
budgeted

2013
budgeted
compared
with 2012
actual

93,118
393,929
73,466
77,834
124,738
136,198
134,492
83,659
81,168
98,139
90,049
154,956
1,541,744

92,868
393,188
72,221
76,309
122,999
132,584
131,171
80,789
80,366
97,064
86,381
153,068
1,519,005

106,240
416,877
80,962
78,105
132,561
139,699
142,332
89,085
87,927
106,170
93,895
163,183
1,637,036

-0.3
-0.2
-1.7
-2.0
-1.4
-2.7
-2.5
-3.4
-1.0
-1.1
-4.1
-1.2
-1.5

14.4
6.0
12.1
2.4
7.8
5.4
8.5
10.3
9.4
9.4
8.7
6.6
7.8

103,807
6,823

116,062
6,387

120,711
7,277

11.8
-6.4

4.0
13.9

1,652,375

1,641,453

1,765,024

-0.7

7.5

Note: Components may not sum to totals and may not yield percentages shown because of rounding.
1
The final 2012 salaries budget of $1,647,608 thousand was approved by the Board in December 2011. In May 2012,
the Board approved an additional $4,767 thousand for employee equity adjustments, which is included in the 2012
budget number above.

44

Annual Report: Budget Review

Table C.6. Capital outlays of the Federal Reserve Banks, by district, and
of FRIT and OEB, 2012 and 2013
Thousands of dollars, except as noted
Percent change
District

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, all Districts
Federal Reserve Information
Technology (FRIT)
Office of Employee Benefits (OEB)
Total

2012
(budgeted)

2012
(actual)

2013
(budgeted)

2012 actual
compared
with 2012
budgeted

2013
budgeted
compared
with 2012
actual

29,573
122,319
15,181
14,471
21,797
19,081
39,384
8,378
15,401
7,160
13,385
43,393
349,523

20,934
263,221
13,370
11,711
16,108
16,697
22,236
11,385
17,358
5,952
9,566
22,726
431,263

49,710
122,460
18,833
15,589
32,146
21,874
49,923
8,208
15,624
8,458
15,467
53,137
411,431

-29.2
115.2
-11.9
-19.1
-26.1
-12.5
-43.5
35.9
12.7
-16.9
-28.5
-47.6
23.4

137.5
-53.5
40.9
33.1
99.6
31.0
124.5
-27.9
-10.0
42.1
61.7
133.8
-4.6

53,727
950

65,871
340

80,510
200

22.6
-64.2

22.2
-41.1

404,200

497,474

492,141

23.1

-1.1

Note: Components may not sum to totals and may not yield percentages shown because of rounding.

2013

45

Table C.7. Capital outlays of the Federal Reserve Banks, FRIT, and OEB,
by asset classification, 2012 and 2013
Thousands of dollars, except as noted
Percent change
Asset classification

2012
(budgeted)

2012
(actual)1

2013
(budgeted)

2012 actual
compared
with 2012
budgeted

2013
budgeted
compared
with 2012
actual

Equipment
Furniture, furnishings, and fixtures
Land and other real estate
Building
Building machinery and equipment
Software
Other2
Total

88,182
27,198
430
103,677
31,522
148,475
4,715
404,200

81,009
16,538
47,043
196,525
31,793
119,483
5,083
497,474

116,211
23,831
814
130,250
41,563
176,282
3,190
492,141

-8.1
-39.2
10,840.2
89.6
0.9
-19.5
7.8
23.1

43.5
44.1
-98.3
-33.7
30.7
47.5
-37.2
-1.1

Note: Components may not sum to totals and may not yield percentages shown because of rounding.
1
The 2012 actual capital outlays were $93,274 thousand over the 2012 budget, primarily due to the Federal Reserve
Bank of New York’s unbudgeted purchase of the 33 Maiden Lane building in February 2012, which is mainly reflected
in the building and land and other real estate asset classes reported above.
2
Other includes leasehold improvements and art.
FRIT Federal Reserve Information Technology.
OEB Office of Employee Benefits.

47

Appendix D

Maps of the Federal Reserve System

Notes
The maps below and on the next page identify Federal Reserve Districts by
their official number, city, and letter designations. The maps show the District boundaries as of year-end 2012.

■ Federal Reserve Bank city; ■ Board of Governors of the Federal Reserve System, Washington, D.C.
N

48

Annual Report: Budget Review

■ Federal Reserve Bank city; ● Federal Reserve Branch city; ■ Board of Governors of the Federal Reserve System,
N
Washington, D.C.; — Branch boundary

www.federalreserve.gov
0513