TREASURY DIRECTIVE 21-01

Date: August 5, 1999

Sunset Review: August 5, 2003

SUBJECT: Organizational Changes

1. PURPOSE. This directive establishes policies and procedures for Departmental approval of significant organizational changes within Departmental Offices and the Treasury Bureaus.

2. POLICY. Significant organizational changes will be designed to promote the best use of resources, sound management practices, and customer service. These organizational changes will only be effected with the concurrence of the supervisory policy official (as designated in Treasury Order (TO) 101-05 and the organization chart attached to that Order) and the approval of either the Assistant Secretary for Management and Chief Financial Officer (CFO) or the Secretary of the Treasury.

3. GUIDELINES. Significant organizational changes? requiring approval include:

a. any creation, abolishment, or substantial changes in the organization at the level that reports directly to an Assistant Secretary or above (in Departmental Offices) or a bureau head and/or a deputy bureau head; or

b. proposed changes in mission-critical programs; or

c. major changes in field structures; or

d. changes that will cause controversy or have a major impact on the organization?s customers, stakeholders or Congress; or

e. changes that will have a major budget and/or personnel impact.

4. INFORMATION REQUIREMENTS. Proposals for significant organizational changes should contain the following information:

a. A brief explanation of the purpose of the proposed organizational change. As appropriate, this should include describing how the proposal will enhance the mission of the organization, improve alignment with the strategic plan, improve customer service, improve efficiency, and possibly save money.

b. A succinct description of the differences between the proposed new structure and the present structure, presenting the advantages resulting from each change.

c. A statement of any legal requirements or conditions applicable to the change.

d. All realigned or otherwise affected organizational charts, maps, new or revised functional statements, and a list of positions by occupation/grade for the present and proposed organizations. Organizational charts should include an approval line for the Assistant Secretary for Management and CFO.

e. A brief explanation of the impact on employees, including Senior Executive Service positions, authorized personnel ceilings and the average grade.

f. An assessment of challenges in implementing the proposal. Also, the proposal should assess any possible controversies with members of Congress, employee unions, the public, or other agencies. The proposal should also describe any communications which have taken place.

g. Any draft Treasury Order (TO) or Treasury Directive (TD) that needs revision to reflect the new organizational structure.

5. PROCEDURES FOR REVIEW AND APPROVAL.

a. Heads of bureaus, Under Secretaries, or Assistant Secretaries will submit proposed significant organizational changes to the supervisory policy official (if any) for concurrence. The proposal will then be forwarded to the Assistant Secretary for Management and CFO for approval except as indicated below:

1. In cases where the Secretary is the supervisory policy official (Inspector General, Treasury Inspector General for Tax Administration, Internal Revenue Service, General Counsel, Office of the Comptroller of the Currency, Office of Thrift Supervision) the proposal shall be submitted directly to the Assistant Secretary for Management and CFO for concurrence. The Assistant Secretary for Management and CFO will forward the proposal to the Secretary with a recommendation for action.

2. If the reorganization is for the Office of the Assistant Secretary for Management and CFO, the responsible Deputy Assistant Secretary shall submit the proposal to the Assistant Secretary.

3. PUBLICATION OF CHANGES.

a. Federal Register. Heads of bureaus are responsible for publishing significant organizational changes in the Federal Register when required by 5 U.S.C. 552(a) or other statute or regulation. The Assistant Secretary for Management and CFO (or designee) is responsible for publishing approved changes for Departmental Offices.

b. Treasury Organization Manual. Once the changes have been approved, the Office of Personnel Policy, Departmental Offices, will ensure that the Treasury Organizational Manual on the Department?s World Wide Web site is updated. The revisions will include:

1. the mission statement of the organization;

2. the revised organizational chart; and

3. functional statements for each major organizational component.

7. EXCEPTIONS.

a. The process specified in this Directive does not impinge on the Secretary's authority to organize the Department and its constituent units as the Secretary determines is appropriate.

8. STATUTORY REQUIREMENTS. There may be statutory provisions pertaining to the organization, or procedures for reorganization, of a constituent unit within the Department. This Directive is not intended to modify or affect any such statutory requirement, condition or other limitation.

9. REFERENCES.

a. 31 U.S.C. 321.

b. TO 101-05, "Reporting Relationships and Supervision of Officials, Offices and Bureaus, Delegation of Certain Authority, and Order of Succession in the Department of the Treasury," or successor documents.

c. TO 107-04, ?The General Counsel".

10. CANCELLATION. TD 21-01, "Organizational Changes in the Department of the Treasury," dated August 9, 1990, is superseded.

11. OFFICE OF PRIMARY INTEREST. Office of Personnel Policy, Deputy Assistant Secretary for Human Resources, Assistant Secretary for Management and Chief Financial Officer.