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Board of Governors of the Federal Reserve System
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Annual Report 2014

Federal Reserve System Budgets

The Federal Reserve Board of Governors and the Federal Reserve Banks prepare annual budgets as part of their efforts to ensure appropriate stewardship and accountability. This section presents information on the 2014 budget performance of the Board and Reserve Banks, as well as their 2015 budgets, budgeting processes, and trends in expenses and employment.1 This section also presents information on the costs of new currency.2


System Budgets Overview

Tables 1 and 2 summarize the Federal Reserve Board of Governors' and Federal Reserve Banks' 2014 budgeted and actual and 2015 budgeted operating expenses and employment.3

Table 1. Total operating expenses of the Federal Reserve System, net of receipts and claims for reimbursement, 2014-15
Millions of dollars, except as noted
Item 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Board 584.2 565.3 -18.9 -3.2 629.3 64.0 11.3
OIG 26.9 25.4 -1.5 -5.6 29.0 3.6 14.2
Reserve Banks 1 3,795.7 3,752.3 -43.3 -1.1 3,968.7 216.3 5.8
Currency 826.7 707.4 -119.3 -14.4 717.9 10.5 1.5
Total System operating expenses 2 5,233.5 5,050.4 -183.0 -3.5 5,344.9 294.4 5.8
 
Revenue from priced services 423.6 433.1 9.5 2.3 414.4 -18.7 -4.3
Claims for reimbursement 3 569.1 569.6 0.5 0.1 626.1 56.4 9.9
Other income 4 2.7 2.7 0.0 0.5 2.9 0.2 6.7
Revenue and claims for reimbursement 5 995.4 1,005.5 10.1 1.0 1,043.4 37.9 3.8
 
Total System operating expenses, net of revenue and claims for reimbursement 4,238.1 4,045.0 -193.1 -4.6 4,301.5 256.5 6.3

Note: Here and in subsequent tables, components may not sum to totals and may not yield percentages shown because of rounding.

1. Excludes Reserve Bank capital outlays as well as assessments by the Board of Governors for costs related to currency and the operations of the Board of Governors and the Consumer Financial Protection Bureau (CFPB). Return to table

2. Includes total operating expenses of the Federal Reserve Information Technology (FRIT) support function and the System's Office of Employee Benefits (OEB), the majority of which are in the Reserve Banks. Return to table

3. Reimbursable claims include the expenses of fiscal agency and depository services provided to the U.S. Treasury, other government agencies, and other fiscal principals. Return to table

4. Fees that depository institutions pay for the settlement component of the Fedwire Securities Service transactions for Treasury securities transfers. Return to table

5. Excludes annual assessments for the supervision of large financial companies pursuant to Regulation TT, which are not recognized as revenue or used to fund Board expenses. (See section 4, "Supervision and Regulation," for more information.)  Return to table

Table 2. Employment in the Federal Reserve System, 2014-15
Item 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Board 1 2,620 2,625 5 0.2 2,673 48 1.8
OIG1 120 120 0 0.0 125 5 4.2
Reserve Banks 2 18,979 18,744 -236 -1.2 19,295 552 2.9
Total System employment 21,719 21,489 -231 -1.1 22,093 605 2.8

Note: Employment numbers presented include authorized 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 and includes outside agency help.

1. Budget represents authorized position count at the beginning of the year and actual represents authorized position count at year-end. Return to table

2. Includes employment of the FRIT support function and the OEB. Return to table

2014 Budget Performance

In carrying out its responsibilities in 2014, the Federal Reserve System incurred $4.0 billion in net expenses. Total spending of $5,050.4 million was offset by $1,005.5 million in revenue from priced services, claims for reimbursement, and other income. Total 2014 expenses were $183.0 million, or 3.5 percent, less than the amount budgeted for 2014.

2015 Operating Expense Budget

Budgeted 2015 operating expenses, net of revenue and reimbursements, are $256.5 million, or 6.3 percent, higher than 2014 actual expenses. The Reserve Bank budgets comprise almost three-quarters of the System budget (figure 1). Budgeted 2015 revenue from priced services is 4.3 percent lower than 2014 revenue, largely because of continued declines in check volume as customers shift to other payment methods. Claims for reimbursements are expected to increase 9.9 percent in 2015, reflecting increased expenses for several Treasury Department initiatives and as a result of transition costs related to the Treasury fiscal agent consolidation.4

Figure 1. Distribution of budgeted expenses of the Federal Reserve System, 2015

Figure 1. Distribution of budgeted expenses of the Federal Reserve System, 2015
Accessible Version | Return to text

1. Includes expenses of the Office of Inspector General (OIG).

Trends in Expenses and Employment

From the actual 2005 level to the budgeted 2015 amount, the total expenses of the Federal Reserve System have increased an average of 4.7 percent per year (figure 2). Over the same period, nondefense discretionary spending by the federal government has increased an average of 1.7 percent per year (figure 3). From 2005 through 2010, Federal Reserve System employment declined. It has subsequently increased because of requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) and responses to the financial crisis (figure 4).

Growth in supervision expenses over the past 10 years has been driven by additional supervisory resources needed to respond to the financial crisis, to continue to implement expanded supervisory responsibilities mandated by the Dodd-Frank Act, and to maintain appropriate coverage following growth in the number of supervised state member banks. Expense growth in the monetary policy area during the financial crisis has been followed by a focus on enhancing financial stability monitoring and dedicating additional resources to regional economic research.

Expenses in the cash area have increased as a result of a multiyear effort to modernize the cash-processing and inventory-tracking infrastructure. Expenses for services provided to the Treasury have grown to meet that agency's evolving needs, including the automation of the Treasury's collection and payment services, the addition of Treasury applications to the Treasury Web Application Infrastructure, and other requested projects. These increases have been partially offset by substantial expense and staffing decreases related to efficiencies from automation or organizational changes in electronic check-processing, fiscal agency, cash, and support functions. They have also been partially offset by the continued decline of paper check volume.

Figure 2. Total expenses of the Federal Reserve System, 2005-15

Figure 2. Total expenses of the Federal Reserve System, 2005-15
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Note: For 2015, budgeted. Includes expenses of the OIG.

1. Calculated with the GDP price deflator.

Figure 3. Cumulative change in Federal Reserve System expenses and federal government expenses, 2005-15

Figure 3. Cumulative change in Federal Reserve System expenses 
and federal government expenses, 2005-15
Accessible Version | Return to text

Note: For 2015, 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.

1. Discretionary spending less expenditures on defense. Source: Budget of the United States Government, Fiscal Year 2014: Historical Tables, Table 8.1. Outlays by Budget Enforcement Act Category, 1962-2019.

2. Includes expenses of the OIG.

Figure 4. Employment in the Federal Reserve System, 2005-15

Figure 4. Employment in the Federal Reserve System, 2005-15
Accessible Version | Return to text

Note: For 2015, budgeted. Employment numbers presented include position counts for the Board and average number of personnel (ANP) for the Reserve Banks.

2015 Capital Budgets

The capital budgets for the Board and Reserve Banks total $76.6 million and $454.0 million, respectively.5 As in previous years, the 2015 capital budgets include funding for projects that support the strategic direction outlined by the Board and each Reserve Bank. These strategic goals emphasize investments that continue to improve operational efficiencies, enhance services to Bank customers, and ensure a safe and productive work environment.

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Board of Governors Budgets

The Board's budget is grounded in the direction
set by its Strategic Framework 2012-15 (www.federalreserve.gov/publications/gpra/files/2012-2015-strategic-framework.pdf).6 The budget is structured by division, office, or special account.

The Board's budget process is as follows:

  • At the start of the budget process, the chief operating officer (COO) and chief financial officer (CFO) meet with the Committee on Board Affairs (CBA) and recommend a specific growth target for the Board's operating budget.
  • The recommendation is based on a growth projection that includes known changes in the Board's base budget (personnel expenses as well as goods and services), positions and funding clearly defined in the framework, and additional initiatives.
  • The projection also incorporates the full-year impact of positions added during the prior year as well as proposed changes to the Board's compensation and benefit programs and historic spending trends in goods and services.
  • Staff reviews initial budget requests submitted by divisions and offices, including proposed initiatives and potential savings, and work collaboratively with all divisions and offices to refine budget submissions and bring the proposed operating budget in line with the growth target.
  • The COO and CFO subsequently meet with the Executive Committee and the CBA to further review and refine the budget submissions.
  • Staff submits the proposed budget to the CBA for review.
  • The administrative governor submits the budget to the full Board for review and final action.
  • Expenses are monitored throughout the year. 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 Board for approval; thus, information on the OIG's budget is also provided in the discussion that follows.

Tables 3 and 4 summarize the Board's 2014 budgeted and actual expenditures, as well as its 2015 budgeted expenditures by division, office, or special account and by account classification, respectively. Table 5 summarizes the Board's budgeted and actual authorized position count for 2014 and 2015. Each table also includes a line item for the OIG.

Table 3. Operating expenses of the Board of Governors, by division, office, or special account, 2014-15
Millions of dollars, except as noted
Division, office, or special account 2014 budget 1 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Board Members 26.5 25.5 -1.0 -3.8 27.3 1.8 7.1
Secretary 9.7 9.6 -0.1 -1.0 10.0 0.4 4.2
Research and Statistics 61.7 62.5 0.8 1.3 66.2 3.7 5.9
International Finance 27.0 25.0 -2.0 -7.4 28.6 3.6 14.4
Monetary Affairs 32.3 30.4 -1.9 -5.9 34.0 3.6 11.8
Office of Financial Stability Policy and Research 7.0 6.5 -0.5 -7.1 7.6 1.1 16.9
Bank Supervision and Regulation 106.5 113.2 6.7 6.3 122.4 9.2 8.1
Consumer and Community Affairs 24.5 25.0 0.5 2.0 27.3 2.3 9.2
Legal 24.3 25.4 1.1 4.5 25.9 0.5 2.0
Chief Operating Officer 10.2 9.3 -0.9 -8.8 14.0 4.7 50.5
Financial Management 10.3 10.6 0.3 2.9 11.1 0.5 4.7
Reserve Bank Operations and Payment Systems 34.7 34.5 -0.2 -0.6 39.6 5.1 14.8
Information Technology 93.5 83.7 -9.8 -10.5 94.8 11.1 13.3
Management 111.7 108.1 -3.6 -3.2 114.0 5.9 5.5
Data processing income -36.7 -39.8 -3.1 8.4 -44.0 -4.2 10.6
Residual retirement 9.9 9.5 -0.4 -4.0 9.8 0.3 3.2
Special projects 13.6 16.8 3.2 23.5 14.7 -2.1 -12.5
Savings and reallocations 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Extraordinary items 17.8 9.4 -8.4 -47.2 26.0 16.6 176.6
Total, Board operations 584.2 565.3 -18.9 -3.2 629.3 64.0 11.3
 
Office of Inspector General 26.9 25.4 -1.5 -5.6 29.0 3.6 14.2

1. 2014 budget figures do not reflect internal transfers between divisions during the year. Return to table

Table 4. Operating expenses of the Board of Governors, by account classification, 2014-15
Millions of dollars, except as noted
Account classification 2014 budget 1 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Personnel services
Salaries 328.0 335.9 7.9 2.4 362.5 26.6 7.9
Retirement/thrift plans 2 42.2 42.3 0.1 0.2 44.8 2.5 5.9
Employee insurance 28.6 29.4 0.8 2.8 31.3 1.9 6.5
Subtotal, personnel services 398.7 407.5 8.8 2.2 438.6 31.1 7.6
 
Goods and services
Postage and shipping 0.5 0.3 -0.2 -40.0 0.8 0.5 166.7
Travel 15.1 14.9 -0.2 -1.3 14.7 -0.2 -1.3
Telecommunications 7.9 7.0 -0.9 -11.4 6.8 -0.2 -2.9
Printing and binding 2.2 1.3 -0.9 -40.9 1.8 0.5 38.5
Publications 0.6 0.5 -0.1 -16.7 0.5 0.0 0.0
Stationery and supplies 2.3 1.6 -0.7 -30.4 1.5 -0.1 -6.3
Software 17.1 13.4 -3.7 -21.6 15.3 1.9 14.2
Furniture and equipment 14.3 9.8 -4.5 -31.5 7.5 -2.3 -23.5
Rentals 16.2 14.3 -1.9 -11.7 22.9 8.6 60.1
Books and subscriptions 1.3 2.0 0.7 53.8 15.0 13.0 650.0
Utilities 3.6 3.4 -0.2 -5.6 2.9 -0.5 -14.7
Repairs and alterations bldg. 3.0 2.4 -0.6 -20.0 2.9 0.5 20.8
Repairs and maintenance F&E 3.3 4.1 0.8 24.2 5.2 1.1 26.8
Contingency processing center 1.3 1.2 -0.1 -7.7 1.3 0.1 8.3
Contractual professional services 64.5 55.4 -9.1 -14.1 51.6 -3.8 -6.9
Interest expense * * * 0.0 0.0 * 0.0 0.0
Tuition 5.1 3.8 -1.3 -25.5 4.6 0.8 21.1
Subsidies and contributions 0.8 0.8 0.0 0.0 0.8 0.0 0.0
Depreciation/amortization 27.7 24.4 -3.3 -11.9 36.9 12.5 51.2
All other 3 -1.3 -2.9 -1.6 123.1 -2.2 0.7 -24.1
Subtotal, goods and services 185.5 157.8 -27.7 -14.9 190.8 33.0 20.9
Total, Board operations 584.2 565.3 -18.9 -3.2 629.3 64.0 11.3
 
Office of Inspector General
Personnel services 18.3 19.3 1.0 5.5 21.1 1.8 9.3
Goods and services 8.7 6.1 -2.6 -29.9 7.9 1.8 29.5
Total, OIG operations 26.9 25.4 -1.5 -5.6 29.0 3.6 14.2

1. 2014 budget figures do not reflect internal transfers between divisions during the year. Return to table

2. Includes expenses related to Board participants in the Benefit Equalization Retirement Plan and Pension Enhancement Plan. Return to table

3. All other includes, among other items, income from outside agencies for data processing services, rental income, and transportation subsidy benefits for employees. Return to table

*Less than $500 thousand. Return to table

Table 5. Positions authorized by the Board of Governors, by division, office, or special account, 2014-15
Division, office, or special account 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Board Members 117 118 1 0.9 118 0 0.0
Secretary 53 53 0 0.0 53 0 0.0
Research and Statistics 336 336 0 0.0 343 7 2.1
International Finance 145 144 -1 -0.7 150 6 4.2
Monetary Affairs 151 151 0 0.0 157 6 4.0
Office of Financial Stability Policy and Research 37 37 0 0.0 42 5 13.5
Bank Supervision and Regulation 423 428 5 1.2 441 13 3.0
Consumer and Community Affairs 103 103 0 0.0 107 4 3.9
Legal 110 110 0 0.0 115 5 4.5
Chief Operating Officer 59 59 0 0.0 59 0 0.0
Financial Management 69 69 0 0.0 69 0 0.0
Reserve Bank Operations and Payment Systems 168 168 0 0.0 170 2 1.2
Information Technology 409 409 0 0.0 409 0 0.0
Management 440 440 0 0.0 440 0 0.0
Total, Board operations 1 2,620 2,625 5 0.2 2,673 48 1.8
 
Office of Inspector General 120 120 0 0.0 125 5 4.2

1. Budget represents authorized position count at the beginning of the year and actual represents authorized position count at year-end. Return to table

2014 Budget Performance

Board of Governors

Total expenses for Board operations were $565.3 million, which was $18.9 million, or 3.2 percent, less than the approved 2014 budget of $584.2 million. The Board's 2014 single-year capital spending was also less than budgeted by $2.2 million, or 44.3 percent, and multiyear capital projects remained within their projects budgets with actual spending less than budgeted by $37.1 million, or 31.1 percent.

The 2014 operational underrun was primarily driven by lower-than-planned goods and services expenses. Personnel services were $8.8 million over the 2014 budget primarily due to the ability of divisions to hire faster than projected, unplanned overtime, and revisions to the variable pay program. Goods and services were $27.7 million less than budgeted because divisions and offices spent less than anticipated for contractual professional services for automation projects, software, furniture and equipment, and for the Martin Building renovation and Data Center relocation projects.

Office of Inspector General

Total expenses for OIG operations were $25.4 million, or $1.5 million less than the approved 2014 operating budget. Personnel services were $1.0 million more than budgeted, largely because hiring was earlier than anticipated. Goods and services were $2.6 million less than budgeted, mainly due to costs related to project delays.

2015 Operating Expense Budget

Board of Governors

The 2015 budget for Board operations is $629.3 million, which is $64.0 million, or 11.3 percent, higher than 2014 actual expenses. The operating budget includes amounts to fund the Board's ongoing operations and to support the strategic themes identified in the Board's 2012-15 strategic framework. This is the third budget since the Board approved the framework in June 2012.

For 2015, authorized positions for Board operations total 2,673, an increase of 48 positions, or 1.8 percent, from 2014 actual levels. The positions are aligned with the strategic framework themes and will primarily support the Board's financial stability and supervisory mandate under the Dodd-Frank Act and new regulatory responsibilities. The budget reflects the full authorization of all 192 positions identified in the strategic framework.

Office of Inspector General

The 2015 budget for OIG operations is $29.0 million, which is $3.6 million, or 14.2 percent, higher than 2014 actual expenses. This includes an increase of 5 positions, for a total of 125 positions. The additional funding and positions will assist the OIG in achieving its objectives laid out in its strategic plan, including delivering timely, high-quality products and services that promote agency improvement; increasing employee engagement and leadership development; and enhancing the capacity of the OIG to accomplish expanded oversight of the Board's and the Consumer Financial Protection Bureau's core mission areas related to supervision and regulation while improving operational effectiveness.

Risks in the 2015 Budget

When the Board approved the 2012-15 strategic framework, the governors considered the resources necessary to implement the strategic themes, as well as budgetary growth targets to manage costs. The 2014 operating budget took an initial step to better align the personnel services budget with actual hiring patterns. Additional steps taken for 2015 in budgeting for personnel expenses, as well as in goods and services, should bring the entire operating budget much closer to actual historic spending patterns. Better alignment between the budget and spending trends will demonstrate continued commitment to the framework's goal for fiscal responsibility, while providing necessary resources for the Board to achieve its goals and objectives.

During the budget process, several divisions identified potential future staffing needs to help finish implementing requirements stemming from the Dodd-Frank Act and to meet new requests from Board members while continuing to achieve ongoing operational requirements. Projected increases in staffing will impact support functions, including placing additional demands on available office space.

Other budget risks stem from uncertainty about the rising expenses associated with the Board's data needs and the infrastructure necessary to support effective data management. As part of the strategic framework, the Board approved its two largest capital projects in recent years: the renovation of the Martin Building and the relocation of the Data Center. The Board has retained consultants to assist in these efforts and has capable staff who have experience dealing with complex projects, and both initiatives continue to receive careful monitoring given the size of their budgets and critical importance. The Board has also begun developing a strategic plan to guide its operations over the 2016-19 horizon, which will help inform future budget requests.

2015 Capital Budget

Table 6 summarizes the Board's and the OIG's budgeted and actual capital outlays for 2014 and 2015.

Table 6. Capital outlays of the Board of Governors, by capital type, 2014-15
Millions of dollars, except as noted
Item 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Board
Single-year capital outlays 5.0 2.8 -2.2 -44.3 11.1 8.3 299.4
Multiyear capital outlays 119.5 82.4 -37.1 -31.1 64.3 -18.1 -21.9
Total capital outlays 124.5 85.2 -39.3 -31.6 75.4 -9.7 -11.4
 
OIG
Single-year capital outlays 0.1 0.0 0.0 -61.5 0.2 0.1 502.6
Multiyear capital outlays 3.2 1.4 -1.9 -57.7 1.0 -0.3 -24.6
Total capital outlays 3.3 1.4 -1.9 -57.7 1.2 -0.2 -14.6
 
Combined total capital outlays 127.8 86.6 -41.2 -32.3 76.6 -9.9 -11.5

Note: The amount reported for the multiyear capital budget represents the expected expenditure for the budget year.

Board of Governors

The Board's 2015 capital budget totals $11.1 million for single-year capital, which represents an increase over 2014 actuals that is primarily driven by technology infrastructure projects, including general network systems, statistics function upgrades, and infrastructure growth. The Board's multiyear capital budget totals $437.5 million, which includes 2015 expected cash outlays of $64.3 million. The two largest components of the Board's multiyear capital budget are the Martin Building renovation and Data Center relocation projects. The Martin Building renovation project includes a complete building renovation, construction of a visitor screening and conference center, and leased space to accommodate employees relocated during construction. The Data Center relocation project includes build out, along with software and hardware acquisitions needed to support a network infrastructure that can accommodate the increased demand for data.

Office of Inspector General

The OIG's 2015 capital budget totals $0.2 million for single-year capital and $1.0 million for multiyear capital outlays. The OIG's single-year capital budget is primarily driven by information technology (IT) equipment that will enhance the data storage capabilities within its IT operating environment. The multiyear capital budget includes the continued build out of its regional offices; no new funding was requested for the OIG's multiyear capital budget.

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Federal Reserve Banks Budgets

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 functional area, with attributable support and overhead charged to each area. In addition to the budget approval process, the Reserve Banks must submit proposals for major capital expenditures to the Board for further review and approval.

The Reserve Bank budget process is as follows:

  • Reserve Bank and Board governance bodies provide budget guidance for major functional areas for the upcoming budget year.
  • The Reserve Banks develop budgets that incorporate this guidance, which are reviewed by senior leadership in the Reserve Banks for alignment with Reserve Bank and System priorities.
  • 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 System initiatives.
  • The Board's Committee on Federal Reserve Bank Affairs (BAC) reviews the Bank budgets.
  • The Reserve Banks make any requested or needed changes, and the BAC chair submits the revised budgets to Board members for review and final action.
  • Throughout the year, Reserve Bank and Board staffs monitor actual performance and compare it with approved budgets and forecasts.

Tables 7, 8, and 9 summarize the Reserve Banks' 2014 budgeted and actual expenses and 2015 budgeted expenses by Reserve Bank, functional area, and account classification.7 In addition, table 10 shows the Reserve Banks' budgeted and actual employment for 2014 and budgeted employment for 2015.

Table 7. Operating expenses of the Federal Reserve Banks, by district, 2014-15
Millions of dollars, except as noted
District 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Boston 220.1 220.6 0.4 0.2 231.6 11.0 5.0
New York 908.9 889.7 -19.2 -2.1 938.3 48.6 5.5
Philadelphia 202.6 197.6 -5.0 -2.5 200.8 3.2 1.6
Cleveland 176.2 163.2 -13.1 -7.4 173.5 10.3 6.3
Richmond 361.0 357.3 -3.6 -1.0 359.7 2.4 0.7
Atlanta 319.0 339.4 20.5 6.4 323.0 -16.4 -4.8
Chicago 340.7 334.7 -6.0 -1.8 356.6 21.9 6.6
St. Louis 285.8 282.8 -3.0 -1.0 335.4 52.6 18.6
Minneapolis 199.8 190.8 -9.0 -4.5 214.5 23.7 12.4
Kansas City 222.4 218.9 -3.4 -1.5 255.3 36.4 16.6
Dallas 212.2 211.7 -0.5 -0.3 223.3 11.6 5.5
San Francisco 347.0 345.6 -1.4 -0.4 356.7 11.1 3.2
 
Total Reserve Bank operating expenses 3,795.7 3,752.3 -43.3 -1.1 3,968.7 216.3 5.8

Note: Includes expenses of the FRIT support function and the OEB, and reflects all redistributions for support and allocation for overhead. Excludes Reserve Bank capital outlays as well as assessments by the Board of Governors for costs related to currency and the operations of the Board of Governors and the CFPB.

Table 8. Operating expenses of the Federal Reserve Banks, by operating area, 2014-15
Millions of dollars, except as noted
Operating area 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Monetary and economic policy 614.1 609.2 -4.9 -0.8 636.8 27.5 4.5
Services to the U.S. Treasury and other
government agencies
550.2 531.7 -18.5 -3.4 579.9 48.2 9.1
Services to financial institutions and the public 1,048.5 1,032.7 -15.9 -1.5 1,073.6 40.9 4.0
Supervision and regulation 1,189.4 1,168.5 -20.9 -1.8 1,260.2 91.7 7.8
Fee-based services to financial institutions 393.4 410.3 16.9 4.3 418.2 7.9 1.9
 
Total Reserve Bank operating expenses 1 3,795.7 3,752.3 -43.3 -1.1 3,968.7 216.3 5.8

1. Operating expenses exclude pension costs, Board-related expenses, and reimbursements. Return to table

Table 9. Operating expenses of the Federal Reserve Banks, by account classification, 2014-15
Millions of dollars, except as noted
Account classification 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Personnel 1 2,787.4 2,784.6 -2.8 -0.1 2,938.8 154.2 5.5
Building 320.3 315.2 -5.1 -1.6 326.6 11.4 3.6
Equipment 197.3 177.8 -19.6 -9.9 195.8 18.1 10.2
Software costs 211.9 227.1 15.2 7.2 224.8 -2.3 -1.0
Travel 96.2 89.3 -6.9 -7.2 95.1 5.8 6.5
Materials and supplies 70.1 64.1 -6.1 -8.6 69.1 5.0 7.8
Communications 49.2 46.4 -2.8 -5.7 47.3 0.9 1.9
Shipping 15.5 13.9 -1.6 -10.6 15.5 1.6 11.7
All other 2 47.6 34.0 -13.6 -28.6 55.7 21.7 63.8
 
Total Reserve Bank operating expenses 3,795.7 3,752.3 -43.3 -1.1 3,968.7 216.3 5.8

1. Personnel includes salaries, other personnel expense, and retirement and other employment benefit expenses. It does not include pension expenses related to all the participants in the Retirement Plan for Employees of the Federal Reserve System and the Reserve Bank participants in the Benefit Equalization Plan and the Supplemental Retirement Plan for Select Officers of the Federal Reserve Banks. These expenses are recorded as a separate line item in the financial statements; see "Table 10. Income and expenses of the Federal Reserve Banks, by Bank" in section 11, "Statistical Tables."  Return to table

2. Includes outside fees, recoveries, and the transfer of expenses for capitalizable software development efforts. Return to table

Table 10. Employment at the Federal Reserve Banks, by District, and at FRIT and OEB, 2014-15
District 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Boston 1,097 1,071 -26 -2.3 1,109 38 3.5
New York 3,247 3,214 -33 -1.0 3,294 80 2.5
Philadelphia 946 937 -8 -0.9 921 -16 -1.8
Cleveland 968 943 -26 -2.7 990 47 5.0
Richmond 1,586 1,559 -28 -1.7 1,546 -13 -0.8
Atlanta 1,627 1,581 -46 -2.9 1,594 14 0.9
Chicago 1,512 1,496 -16 -1.0 1,529 33 2.2
St. Louis 1,145 1,141 -4 -0.3 1,246 104 9.1
Minneapolis 1,133 1,088 -45 -4.0 1,114 26 2.4
Kansas City 1,512 1,515 2 0.1 1,688 173 11.4
Dallas 1,217 1,234 17 1.4 1,267 33 2.7
San Francisco 1,671 1,663 -8 -0.5 1,700 37 2.2
Total, all Districts 17,662 17,442 -220 -1.2 17,998 556 3.2
 
Federal Reserve Information Technology (FRIT) 1,265 1,252 -14 -1.1 1,244 -7 -0.6
Office of Employee Benefits (OEB) 52 50 -2 -3.7 53 3 5.3
 
Total 18,979 18,744 -236 -1.2 19,295 552 2.9

2014 Budget Performance

Total 2014 operating expenses for the Reserve Banks were $3,752.3 million, which is $43.3 million, or 1.1 percent, less than the approved 2014 budget of $3,795.7 million. The actual average number of personnel (ANP) is less than the 2014 budget, largely because of turnover and hiring delays.

Supervision and regulation operating expenses are less than budget because of increased turnover, delays in hiring budgeted staff, and a System initiative to reduce travel. In the services to financial institutions and the public, cash expenses were lower than anticipated because of updated plans for the CashForward project, cash-processing equipment delays, and higher-than-expected recoveries for cross-shipping fees.8 Decreasing volumes and program changes for several Treasury initiatives, including those related to the Treasury Web Application Infrastructure, were partially offset by transition expenses related to the fiscal agent consolidation. Increased expenses in the fee-based services area include the disposition of the FedACH Technology Transition program asset.9

Total 2014 actual employment of 18,744 ANP represents an underrun of 236 ANP, or 1.2 percent, from 2014 budgeted levels of 18,979 ANP. Increased turnover and hiring delays in the supervision function are large drivers of the underrun. In Treasury services, program resource reductions in several Treasury initiatives in response to volume declines are partially offset by temporary staff additions to support the fiscal agent consolidation. Staffing delays in monetary policy and public programs and resource changes, primarily in support and overhead areas, also contribute to the reduction.

2015 Operating Expense Budget

The 2015 operating budgets of the Reserve Banks total $3,968.7 million, which is $216.3 million, or 5.8 percent, higher than 2014 actual expenses. The largest increase is in the supervision and regulation function, which is adding resources to support expanded supervisory responsibilities, primarily for large financial institutions and national supervision initiatives. In the monetary and economic policy function, several Reserve Banks are adding resources to meet policy, research, and outreach demands, including investments in analytical capacity.

Budgeted expenses for services to the Treasury, which are fully reimbursable, are increasing to support the expansion of the Treasury Web Application Infrastructure ($17.7 million) and as a result of transition costs related to the Treasury fiscal agent consolidation ($9.6 million). In addition, the Reserve Banks will provide increased support for technology modernization for several Treasury initiatives.

Increases in services to financial institutions and the public include the completion of development work and the start of quality assurance testing for the CashForward project as well as increased law enforcement and video surveillance systems support. In addition, the budget includes funding for "Strategies for Improving the U.S. Payment System," a multifaceted plan for collaborating with payment system stakeholders to enhance the speed, safety, and efficiency of the U.S. payment system. Expenses related to fee-based services are increasing for the Fedwire Modernization program initiative, offset by the one-time disposition of the FedACH Technology Transition program asset in 2014.10

The Reserve Bank 2015 budgets include $1,331.2 million in expenses and 4,991 ANP for IT. These resources support application development, information security, infrastructure, and end-user services and are allocated to all operating areas listed in table 8.

Total 2015 budgeted employment for the Reserve Banks, FRIT, and OEB is 19,295 ANP, an increase of 552 ANP, or 2.9 percent, from 2014 actual staff levels. The increase is primarily driven by the needs of the supervision, Treasury, and IT operating areas. Supervision ANP is increasing as resources are added to support expanded supervisory responsibilities, primarily for large financial institutions. In the Treasury operating area, personnel are being added for planning and knowledge transfer as part of the fiscal agent consolidation and for ongoing projects.

IT staff is increasing to support application development projects, primarily for the Supervision and Treasury operating areas, offset by a reduction in development work for the CashForward project. Additional IT increases are for information security efforts. Staff is also increasing to support monetary policy and public programs, for the Fedwire modernization program, and for other support areas across the System.

Reserve Bank officer and staff personnel expenses for 2015 total $2,938.8 million, an increase of $154.2 million, or 5.5 percent, from 2014 actual expenses. The increase reflects expenses associated with additional staff and budgeted salary adjustments, including merit increases, equity adjustments, promotions, and funding for variable pay.

The 2015 Reserve Bank budgets include a 3.0 percent merit program for eligible officers, senior professionals, and staff totaling $53.1 million. Equity adjustments and promotions total $8.5 million for officers and senior professionals and $22.8 million for staff. Funding for variable pay programs for officers, senior professionals, and staff totals $170.7 million.

Risks in the 2015 Budget

The most-significant risks in the 2015 budget are related to personnel. Changes in assumptions and updated demographic information that are used to determine benefit expense would affect Reserve Bank budgets. Additionally, Banks are concerned about their ability to hire and retain staff. A number of 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. The primary risks in supervision relate to the implementation of key supervisory responsibilities under the Dodd-Frank Act that still require final rulemaking and changing supervisory programs. The Treasury's fiscal agent consolidation effort will continue to affect projects over a longer-term planning horizon as the future vision for collections, payments, and cash management systems is refined.

2015 Capital Budget

Table 11 shows the Reserve Banks' budgeted and actual capital outlays for 2014 and budgeted capital for 2015.

The 2015 capital budgets submitted by the Reserve Banks, FRIT, and OEB total $454.0 million. The increase in the 2015 capital budget is $118.9 million, or 35.5 percent, above the 2014 actual levels of $335.1 million, largely reflecting ongoing multiyear building and infrastructure and automation projects. New initiatives in the 2015 capital budget support workplace renovations and optimization projects, conference facilities, and expansion of the Treasury Web Application Infrastructure. In support of the Reserve Bank strategies, the 2015 budget includes three major categories of capital initiatives: Reserve Bank automation/IT projects, building and infrastructure, and Treasury initiatives.

Table 11. Capital outlays of the Federal Reserve Banks, by District, and of FRIT and OEB, 2014-15
Millions of dollars, except as noted
District 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
Boston 41.9 23.8 -18.2 -43.3 28.5 4.8 20.0
New York 115.0 71.8 -43.1 -37.5 115.9 44.0 61.3
Philadelphia 21.2 15.5 -5.7 -26.8 20.5 5.0 32.3
Cleveland 22.0 14.5 -7.6 -34.3 17.0 2.5 17.6
Richmond 15.7 12.7 -3.1 -19.4 15.2 2.6 20.2
Atlanta 16.7 26.9 10.2 60.9 16.1 -10.8 -40.0
Chicago 38.1 17.7 -20.4 -53.4 26.5 8.8 49.4
St. Louis 13.5 8.8 -4.8 -35.2 14.3 5.6 63.3
Minneapolis 13.5 5.9 -7.7 -56.6 4.7 -1.2 -20.7
Kansas City 15.6 14.2 -1.3 -8.6 25.8 11.6 81.1
Dallas 18.1 10.5 -7.6 -42.0 17.3 6.8 65.2
San Francisco 65.1 53.3 -11.8 -18.1 60.5 7.1 13.4
Total, all Districts 396.5 275.6 -120.9 -30.5 362.4 86.8 31.5
 
Federal Reserve Information Technology (FRIT) 78.4 59.1 -19.4 -24.7 91.1 32.0 54.1
Office of Employee Benefits (OEB) 0.5 0.4 -0.1 -14.8 0.6 0.2 37.7
 
Total 475.4 335.1 -140.3 -29.5 454.0 118.9 35.5
Automation/IT

The Reserve Banks, FRIT, and OEB included $193.0 million in 2015 funding for major IT initiatives and Reserve Bank automation projects. About 25 percent of the automation capital outlays, or $50.1 million, supports the System's computing and network infrastructure. Multiyear projects currently under way to migrate major applications off the mainframe account for $19.1 million of the 2015 capital budget. Cash automation initiatives include $39.3 million for the CashForward project and $5.1 million for cash sensor upgrades. Investments in analytical, technological, and operational tools are proposed for monetary policy and to support new and ongoing supervisory responsibilities. Other automation investments include enhanced functionality for applications that support the Federal Reserve financial services, information security projects, and scheduled software and equipment upgrades.

Building and Infrastructure

Building and infrastructure projects account for $183.2 million of the 2015 capital budget. Renovations to reconfigure and optimize existing building space are included for the Federal Reserve Banks of New York, Cleveland, Richmond, Kansas City, and Chicago. The Federal Reserve Bank of Kansas City will build an addition to its parking garage to accommodate staffing growth. The Federal Reserve Banks of Dallas and San Francisco will continue their space renovation programs, the Federal Reserve Bank of Chicago will continue its building security project and cash reconfiguration project, and the Federal Reserve Bank of Cleveland plans to invest in conference facilities. The remaining outlays in this category fund other ongoing safety and maintenance needs and facility improvements.

Treasury

The capital budget includes $77.8 million for
Treasury initiatives, including additional space to accommodate staff at the Federal Reserve Bank of St. Louis for expanded Treasury operations, support for Treasury Web Application Infrastructure, and application-development efforts supporting multiple projects.

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Currency Budget

Board staff monitors payments of currency to and receipts of currency from circulation and the number of unfit notes destroyed at the Reserve Banks. 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, forecasts of growth rates for payments of currency to circulation and receipts of currency from circulation, operational factors, and other policy considerations. The Board reimburses the BEP for all costs related to the production of currency.11 Historically, more than 90 percent of the notes that the Board orders each year replace unfit currency that Reserve Banks receive from circulation.

The annual 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 (FY) print order for currency to the director of the BEP.
  • Each December, Board staff estimates expenses for the calendar year 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 proposed currency budget.
  • The BAC chair submits the proposed currency budget to the Board for final action.

2014 Budget Performance

The Board's total 2014 actual expenses for new currency were $707.4 million, which represents a decrease of $119.3 million, or 14.4 percent, from the 2014 budget. The budget underrun is primarily attributable to lower printing costs resulting from a smaller order for Federal Reserve notes, as well as lower-than-projected costs for the currency reader program and transporting new and fit notes. The 2014 budget included costs to print nearly 2.2 billion $100 notes because the issuance plan for the new-design $100 note was based on an aggressive replacement rate of the over nine billion $100 notes in circulation. Board staff planned for high demand for the new $100 note to avoid the risk of stock-outs and potential concerns in domestic and international markets that the Reserve Banks would not be able to meet demand. The initial FY 2014 order for $100 notes was based on payments that exceeded the record-high gross payments in 2012 by 40 percent. Although actual demand in 2014 has been about 4 percent higher than the 2012 level, it was far less than the worst-case demand scenario upon which the order was based. As a result, the FY 2014 print order for new $100 notes was lowered, which resulted in a $116.4 million reduction in budgeted variable printing costs. Some of this reduction was offset, however, by higher-than-budgeted production of lower-denomination ($1, $5, $10, and $20) notes during the fourth quarter.12

2015 Budget

The 2015 new currency budget of $717.9 million is $10.5 million, or 1.5 percent, higher than 2014 actual expenditures (figure 5). Printing costs for Federal Reserve notes make up about 90 percent of the new currency budget. Expenses for currency transportation, the currency reader program, the currency
quality assurance (CQA) program and counterfeit-deterrence research, and the currency education program (CEP) constitute the remaining 10 percent (table 12).

Figure 5. Federal Reserve costs for new currency, 2001-15

Figure 5. Federal Reserve costs for new currency, 2001-15
Accessible Version | Return to text

Note: For 2015, budgeted.

Table 12. Federal Reserve budget for new currency, 2014 and 2015
Thousands of dollars, except as noted
Item 2014 budget 2014 actual Variance
2014 actual to 2014 budget
2015 budget Variance
2015 budget to 2014 actual
Amount Percent Amount Percent
BEP-related expenses
Printing Federal Reserve notes 745,387 656,810 -88,577.0 -11.9 642,527 -14,283 -2.2
Currency reader 19,384 808 -18,576.0 -95.8 17,120 16,312 2018.8
Other 3,225 3,500 275.0 8.5 3,674 174 5.0
Board expenses
Currency transportation 33,222 27,460 -5,762.0 -17.3 29,235 1,775 6.5
Currency quality assurance and counterfeit deterrence 21,091 16,788 -4,303.0 -20.4 20,993 4,205 25.0
Currency education program 4,357 2,036 -2,321.0 -53.3 4,390 2,354 115.6
Total cost of new currency 826,665 707,402 -119,263.0 -14.4 717,939 10,537 1.5

BEP Bureau of Engraving and Printing.

Printing of Federal Reserve Notes

The currency budget includes $642.5 million in printing costs for 2015, which represents a decrease of 13.8 percent from the 2014 budget and 2.2 percent from 2014 actual expenses. The decrease is primarily because the BEP agreed to reduce the amount of its working capital fund by $40 million to $90 million, to better align it with the BEP's expected expenses and obligations.

Currency Reader Program

The 2015 currency reader budget is $17.1 million, which is approximately $16.3 million higher than 2014 expenses and $2.3 million lower than the 2014 budget. Lower reader orders in 2014 resulted in the majority of 2014 budgeted expenses being moved into 2015. The budget includes $15.0 million to purchase and distribute more than 250,000 currency readers to qualified individuals who are blind or visually impaired at no cost to the user.13 In addition, the budget includes $1.8 million to reimburse the Library of Congress for administering the program through the existing infrastructure of its book reader program, which is managed by the National Library Service. The BEP will continue to bill the Board quarterly based on actual expenses, rather than including an estimated cost for the program in its billing rates.

Other Reimbursements to the Bureau of Engraving and Printing

The 2015 budget includes $3.7 million to reimburse the BEP for expenses incurred by its Destruction Standards and Compliance Division of the Office of Compliance (OC) and Mutilated Currency Division (MCD) of the Office of Financial Management. The OC develops standards for cancellation and destruction of unfit currency and for note accountability at the Reserve Banks, and reviews Reserve Banks' cash operations for compliance with its standards. As a public service, the MCD also processes claims for the redemption of damaged or mutilated currency.

Currency Transportation

The 2015 currency transportation budget is $29.2 million, which is nearly $1.8 million, or 6.5 percent, higher than 2014 expenses. The budget includes the cost of shipping new currency from the BEP to Reserve Banks, of intra-System shipments of fit and unprocessed currency, and of returning currency pallets from the Reserve Banks to the BEP. More notes are projected to be shipped in 2015 than in 2014 because the 2015 budget includes nearly 6.0 percent more notes than the 2014 estimate.

Currency Quality Assurance

The 2015 budget for the CQA program is $13.9 million. The budget will allow the CQA consultants to continue facilitating the implementation of the new quality system at the BEP; support the research, technology, and product development required for the next design family of Federal Reserve notes; and continue providing temporary resources to the BEP to sustain critical programs that have been implemented for the quality system.

Counterfeit Deterrence

The 2015 budget for counterfeit-deterrence research is $7.1 million. The budget includes $5.0 million for membership in the Central Bank Counterfeit Deterrence Group (CBCDG). The CBCDG operates under the auspices of the G-10 central bank governors to combat digital counterfeiting and includes 34 central banks.

Currency Education Program

The 2015 CEP budget is $4.4 million, which represents an increase of nearly $2.4 million from 2014 expenses but is nearly equivalent to the 2014 budget. The CEP program protects and maintains confidence in U.S. currency worldwide by providing educational information on all circulating designs of Federal Reserve notes to the global public and key stakeholder groups.

In 2015, the CEP will continue to use in-house resources and, when possible, capitalize on existing Reserve Bank, United States Secret Service, State Department, and BEP partnerships in order to minimize expenses. Tasks that either cannot be or would be too resource-intensive to be sourced internally will be contracted; these tasks account for more than 90 percent of the 2015 CEP budget. The major expense drivers for the 2015 budget include the fulfillment of educational materials in 30 languages, international outreach to businesses and retailers, and hosting and developing the NewMoney.gov educational website. New initiatives in 2015 include the development of a tailored education program for the U.S. retail sector and the development of a new, comprehensive educational guide for consumers and businesses.

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References

1. Each budget covers one calendar year. Return to text

2. Before 2013, information about the budgeted expenses of the Board and Reserve Banks was presented in a separate report titled Annual Report: Budget Review. Copies of that report are available at www.federalreserve.gov/publications/budget-review/default.htmReturn to text

3. Substantially all employees of the Board and Reserve Banks participate in the Retirement Plan for Employees of the Federal Reserve System (System Plan). Reserve Bank employees at certain compensation levels participate in the Benefit Equalization Plan, and certain Reserve Bank officers participate in the Supplemental Retirement Plan for Select Officers of the Reserve Banks. The operating expenses of the Reserve Banks presented in this section do not include expenses related to the retirement plans; additional information about these expenses can be found in section 11, "Statistical Tables" (see "Table 10. Income and expenses of the Federal Reserve Banks, by Bank").

Board employees also participate in the Benefit Equalization Plan, and Board officers participate in the Pension Enhancement Plan for Officers of the Board of Governors of the Federal Reserve System (PEP). The operating expenses of the Board presented in this section include expenses related to Board participants in the Benefit Equalization Plan and PEP, but do not include expenses related to the System Plan. Return to text

4. In April 2014, the Treasury announced the consolidation of the fiscal agent services provided by the Federal Reserve Banks as part of the federal government's effort to increase operational efficiency and effectiveness. Although the Treasury anticipates long-term savings, expenses increased in 2014 as select business lines prepared to transition to other Reserve Banks. Expenses are projected to increase in 2015 as services are consolidated from ten sites to four over the next several years. Increased expenses are primarily for severance and retention payments in exiting Banks. Return to text

5. The capital budget reported for the Board includes the amount budgeted for the Office of Inspector General (OIG). The capital budget reported for the Reserve Banks includes the amounts budgeted for the Federal Reserve Information Technology (FRIT) support function and the Office of Employee Benefits (OEB). Return to text

6. The document identified and framed six overarching themes for the Board to address over the four-year planning horizon, along with recommended resource investments in terms of personnel and facilities. Return to text

7. Additional information about the operating expenses of each of the Reserve Banks can be found in section 11, "Statistical Tables" (see "Table 10. Income and expenses of the Federal Reserve Banks, by Bank"). Return to text

8. The CashForward initiative will replace legacy software applications, automate business processes, and employ technologies to meet current and future needs for the cash function. Phase 1 was completed in 2010 and Phase 2 was completed in July 2012. The project's planned completion date is 2017. Return to text

9. The Reserve Banks have been engaged in a multiyear technology initiative to modernize the FedACH processing platform by migrating the service from a mainframe system to a distributed computing environment. In late 2013, the Reserve Banks conducted an assessment focused on the viability and cost-effectiveness of the program. As a result, the Reserve Banks suspended the program in 2014 and began to investigate the use of other technology solutions. Return to text

10. The Fedwire Modernization initiative involves the transition of the Fedwire Funds and Fedwire Securities applications from the legacy mainframe environment to a distributed platform. Return to text

11. The BEP does not receive federal appropriations; all operations of the BEP are financed by a revolving fund that is reimbursed through product sales, virtually all of which are sales of Federal Reserve notes to the Board to fulfill its annual print order. Customer billings are the BEP's only means of recovering costs of operations and generating funds necessary for capital investment. Section 16 of the Federal Reserve Act requires all costs incurred for the issuing of notes shall be paid for by the Board and included in its assessments to Reserve Banks. Return to text

12. Because the BEP operates on a fiscal year that begins on October 1 and ends September 30, the Board's calendar-year budget for new currency excludes the cost of notes that the BEP will produce in the first quarter of its fiscal year and includes the estimated costs of notes the BEP is projected to produce in the fourth quarter of the calendar year. Return to text

13. The BEP estimates that it may distribute up to 500,000 readers over a three-year period. Return to text

Last update: July 17, 2015

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