U.S. Department of the Treasury

DATE: January 31, 2018

SUBJECT: Administrative Expenses for Trust Funds

1. PURPOSE. This directive establishes reporting requirements for administrative expenses incurred by Treasury bureaus and offices in servicing the following accounts:
   1. the Unemployment Trust Fund (UTF), the Federal Old-Age and Survivors Insurance Trust Fund (FOASI);
   2. the Federal Disability Insurance Trust Fund (FDI);
   3. the Federal Hospital Insurance Trust Fund (FHI);
   4. the Federal Supplementary Medical Insurance Trust Fund (FSMI);
   5. the Black Lung Disability Trust Fund (BLD); and
   6. the Oil Spill Liability Trust Fund.
2. SCOPE. This Directive applies to all bureaus, offices, and organizations in the Department, including the Offices of Inspectors General within the Department. The provisions of this Directive shall not be construed to interfere with or impede the authorities or independence of the Treasury Inspector General, the Treasury Inspector General for Tax Administration, or the Special Inspector General for the Troubled Asset Relief Program.
3. BACKGROUND.
   1. The Secretary of the Treasury is directed by statute to (1) charge the trust funds named in paragraph 1, and with the exception of the Oil Spill Liability Trust Fund, to reimburse the general fund of the Treasury for certain administrative expenses (including the collection of employment taxes) incurred by Treasury entities in administering the trust funds; and, (2) be reimbursed for costs incurred in the issuance of payments for certain trust funds.
   2. For the Oil Spill Liability Trust Fund, the Bureau of the Fiscal Service’s reimbursement authority is authorized by annual appropriation act.
4. RESPONSIBILITIES.
   1. The heads of Treasury Bureaus and other Treasury Offices, in fulfillment of the statutory responsibilities contained in paragraph 6. shall submit the following reports to the Director, Funds Management Division, Bureau of the Fiscal Service:
      1. 1) a quarterly report setting out estimates of administrative expenses to be incurred for each of the trust funds for the current quarter, and reconciling the estimate for the previous quarter with actual expenses;
      2. 2) a fiscal year-end report to summarize, and reconcile if necessary, estimated administrative expenses to actual expenses: and
      3. 3) a report of expected annual expenses for budget purposes covering the current and the next ten budget years.
   2. The Commissioner, Bureau of the Fiscal Service, shall request any additional reports and information as may be necessary to meet Departmental or Office of Management and Budget requirements pertaining to administrative expenses for trust funds.
   3. In the event that either an apportionment or an exemption of apportionment, for the administrative expenses should be required for any of the accounts named in paragraph 1, the Treasury bureau or office incurring administrative expenses with respect to the covered trust funds shall cooperate with the Bureau of the Fiscal Service to obtain any necessary apportionment or exemption.
5. IMPLEMENTATION.
   1. Submission of Quarterly and Annual Reports.
      1. 1) Each quarterly report setting out estimates of administrative expenses to be incurred for each of the trust funds shall be submitted as follows:

      2. Estimate Due On or Before	For Quarter Ending
         October 1	December 31
         January 1	March 31
         April 1	June 30
         July 1	September 30

      3. 2) Any revisions of a previous quarterly report should be included in the current quarterly report.
      4. 3) Each annual report summarizing and adjusting estimated administrative expenses to actual expenses chargeable to the trust funds should be submitted, not later than January 1 of the fiscal year following the fiscal year covered by the report.
   2. Annual Estimates for Budget Purposes. Each bureau or office incurring administrative expenses for the trust funds shall submit to the Funds Management Division, Bureau of the Fiscal Service an estimate of expenses incurred, not later than December 1 of each fiscal year. These estimates shall include:
      1. 1) past year actual;
      2. 2) current year actual and estimates by month; and
      3. 3) annual estimates for the next ten fiscal years.
   3. If bureaus and offices are unable to distribute administrative expenses among the FOASI, the FHI, and the FDI trust funds on an actual basis, such expenses should be reported in total under the FOASI classification, and the Bureau of the Fiscal Service will make the distribution. Any expenses relating to the FSMI, the UTF, the BLD, and the Oil Spill Liability trust funds must be reported separately.
   4. In the event the basis used in compiling the estimates for quarterly reports is changed, the first quarterly estimate in which the new basis is applied should be accompanied by an explanation of the new basis.
6. AUTHORITIES.
   1. 42 USC 401(g)(1)(B) and 1101(c)(2).
   2. 26 USC 9501(d)(5)(B).
   3. Section 104 of the Treasury Department Appropriations Act, 1989, Title I, Public Law 101-136 (31 USC 306 note).
   4. Treasury Department Appropriations Act, 1999, as included in Public Law 105-277, 101(h); 112 Stat. 2681-480, 2681-486, 2681-487 (31 USC 306 note).
7. CANCELLATION. Treasury Directive 32-06, "Administrative Expenses for Trust Funds," dated January 15, 2009, is superseded.
8. OFFICE OF PRIMARY INTEREST. Office of the Fiscal Assistant Secretary and Funds Management Division, Bureau of the Fiscal Service.