Department of Education

OFFICE OF INSPECTOR GENERAL

Fiscal Year 2021 Budget Request

CONTENTS

Page

Appropriations Language ......................................................................................................BB-1

Analysis of Language Provisions and Changes.....................................................................BB-2

Amounts Available for Obligation ..........................................................................................BB-3

Obligations by Object Classification ......................................................................................BB-4

Summary of Changes ...........................................................................................................BB-5

Authorizing Legislation..........................................................................................................BB-6

Appropriations History...........................................................................................................BB-7

Activity: 

Office of Inspector General...............................................................................................BB-8

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Appropriations Language

For expenses necessary for the Office of Inspector General, as authorized by section 212 of 

the Department of Education Organization Act, [$63,000,000] $68,019,000, of which $2,000,000 

shall remain available until expended.1 (Department of Education Appropriations Act, 2020)

NOTE

Each language provision that is followed by a footnote reference is explained in the Analysis of Language 

Provisions and Changes document which follows the appropriations language.
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Analysis of Language Provisions and Changes

Language Provision Explanation

1

...of which up to $2,000,000, shall remain 

available until expended.

 

The language provides that of the amount 

appropriated, $2 million would be no-year 

funding. The need for the additional flexibility 

is for two main reasons: (1) due to delays in 

hiring, multiyear funds provide additional 

flexibility to allow the OIG to restore its FTE 

level; and (2) since 22 percent of the OIG 

budget is associated with common support 

provided by the Department, multiyear funds 

allow for flexibility if actual costs are lower 

than expected and funds are returned to the 

OIG at end of the fiscal year, or if actual costs 

are higher than expected and additional funds 

are required for the OIG.
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Amounts Available for Obligation

(dollars in thousands)

Appropriation and Adjustments 2019 2020 2021 

Discretionary appropriation:

 Appropriation........................................................................ $61,143 $63,000 $68,019

 Transfer from Department of Education, Disaster Relief 1,

for Inspector General........................................................ 2,000 0 0 

Subtotal, discretionary appropriation........................... 63,143 63,000 68,019

 Disaster Relief unobligated balance, start 

of year .............................................................................. 4,000 4,697 3,197

 Unobligated balance, expiring .............................................. 0 0 0

 Disaster Relief unobligated balance, end 

of year .............................................................................. -4,697 -3,197 -1,097

Total, direct obligations............................................... 62,446 64,500 70,119

1 Disaster Relief Funding includes appropriations from the Bipartisan Budget Act of 2018 and the Additional 

Supplemental Appropriations for Disaster Relief Act of 2019. 
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Obligations by Object Classification

(dollars in thousands)

Object Class

2019 

Actual

2020

Appropriation

2021 

Request

Change

from 2020

to 2021

11.10 Full-time permanent $24,627 $28,800 $31,635 $2,835

11.31 Full-time temporary 107 126 127 1

11.32 Part-time 346 126 127 1

11.33 Consultants 3

11.51 Overtime 1,854 0 0 0

11.52 Awards 462 633 1,331 698

Compensation subtotal 27,399 29,685 33,220 3,535

12.00 Benefits 10,358 11,959 13,261 1,302

13.00 Benefits for former personnel 0 0 0 0

Comp/benefits subtotal 37,757 41,644 46,481 4,837

21.00 Travel 1,350 1,429 1,507 78

22.00 Transportation of things 0 0 0 0

23.10 Rental payments to GSA 6,285 7,133 7,133 0

23.31 Communications 163 203 200 -3

23.32 Postage/fees 2 2 2 0

Subtotal 23 6,450 7,338 7,335 -3 

24.00 Printing and reproduction 4 1 1 0

25.10 Advisory and assistance services 757 327 327 0

25.21 Other services 2,331 2,387 2,527 140

25.22 Training/tuition contracts 285 538 574 36

25.30

Goods/services from Federal 

sources 1,570 1,515 1,485 -30

25.40 Operations/maint of facilities 0 0 0 0

25.71 Operations/maint of equip. 3 5 5 0

25.72 IT services/contracts 8,596 6,726 6,238 -488 

Subtotal 25 13,542 11,498 11,156 -342

26.00 Supplies 99 102 115 13

31.10 IT equipment/software 1,165 817 880 63

31.30 Other equipment 66 73 25 -48

Subtotal 31 1,231 890 905 -15

32.00 Building alterations 414 98 519 421

 Subtotal, Obligations 60,847 63,000 68,019 5,019

Subtotal, Disaster Relief

Obligations

 

1,301 1,500 2,100 600

Total, Obligations 61,148 64,500 70,119 5,619

 
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Summary of Changes

(dollars in thousands)

2020.................................................................................................. $63,000

2021................................................................................................ 68,019

Net change................................................................. +5,019

Increases:

2020

Appropriation

Change from

2020

Built in:

Increase of 21 additional FTE and increase in benefits for 

FERS contributions rates, and one percent pay raise.

$41,644 +$4,837

Program:

Increase in Travel. $1,429 +$78

Increase in Training. 538 +36

Increase in OIG’s cost for IT Equipment/Software. 817 +63

Increase in building alterations. 98 421

Net change in other non-personnel areas. 12,373 +98

 Subtotal, increases -5,533

Decreases:

Program:

Decrease in Department’s Central Support IT 

services/contracts. 6,101 -514

 Subtotal, decreases -514

 Net changes +5,019
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Authorizing Legislation

(dollars in thousands)

Activity 2020

Authorized

2020

Appropriation

2021

Authorized

2021

Request

Inspector General (DEOA, Section 212)........................... Indefinite 63,000 Indefinite $68,019

Total appropriation ...................................................... 63,000 68,019
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Appropriations History

(dollars in thousands)

Year

Budget Estimate 

to Congress

House 

Allowance

Senate 

Allowance AppropriationFoototen

2012 $65,238 $60,0531 $65,2381 $59,9331

2013 67,187 59,9332 59,9332 59,820

2014 62,401 59,8203 59,8203 56,691

Transfer (P.L.113-6) 0 0 0 1,100

2015 62,347 N/A4 59,7004 57,791

2016 59,181 N/A5 58,7915 57,791

2017 59,256 59,2566 57,7916 59,256

2018 61,941 59,2567 59,2567 59,2567

2019 61,143 59,2568 61,1438 61,1438

2020 63,418 67,418 61,1439 63,0009

2021 68,019

1The level for the House allowance reflects an introduced bill and the level for the Senate allowance reflects Senate 

Committee action only.

2The levels for the House and Senate allowances reflect action on the regular annual 2013 appropriations bill, which 

proceeded in the 112th Congress only through the House Subcommittee and the Senate Committee.

3The House allowance is shown as N/A because there was no Subcommittee action; Senate allowance reflects 

Committee action only.

4The House allowance is shown as N/A because there was no Subcommittee action; Senate allowance reflects 

Senate Subcommittee action only. 5The levels for House and Senate allowances reflect action on the regular annual 2016 appropriations bill, which 

proceeded in the 114th Congress only through the House Committee and Senate Committee. 

6The levels for the House and Senate allowances reflect Committee action on the regular annual 2017 appropriations 

bill; the Appropriation reflects the Consolidated Appropriations Act, 2017.

7The level for the House allowance reflects floor action on the Omnibus appropriation bill; the Senate allowance 

reflects Committee action on the regular annual 2018 appropriations bill; the Appropriation reflects the Consolidated 

Appropriations Act, 2018 (P.L. 115-141). 8The levels for the House and Senate allowance reflect Committee action on the regular annual 2019 appropriations 

bill; the Appropriation reflects enactment of the Department of Defense and Labor, Health and Human Services, and 

Education Appropriations Act, 2019 (P.L. 115-245). 9 The Senate allowance reflects the Chairman’s mark; the Appropriation reflects the Further Consolidated 

Appropriations Act, 2020 (P.L. 116-94).
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Office of Inspector General 

(Department of Education Organization Act, Section 212) 

(dollars in thousands)

FY 2021 Authorization: Indefinite

Budget Authority:

2020

Appropriation

2021

Request Change

Personnel Compensation and

Benefits Costs $41,644 $46,481 +$4,837

Non-Personnel Costs 21,356 21,538 +182

Total 63,000 68,019 +5,019

FTE 2311 2521 21

1 Excludes 6 FTE associated with Disaster Relief funding. 

PROGRAM DESCRIPTION

The Office of Inspector General’s (OIG) mission is to promote efficiency, effectiveness, and 

integrity in the U.S. Department of Education's (Department) programs and operations through 

independent and objective audits, investigations, inspections, and other activities. The role of 

the OIG is to monitor the Department's performance and report to the Congress and to the 

Secretary on opportunities for improvement and any problems or deficiencies.

The OIG has authority to inquire about all program and administrative activities of the 

Department and related activities of all parties working under contracts, grants, or other 

arrangements with the Department. OIG staff and contracted auditors both make these 

inquiries.

To carry out its responsibilities, the OIG audits and inspects Department programs and 

operations to determine compliance with applicable laws and regulations, economy and 

efficiency of operations, and effectiveness in achieving program goals. The OIG also conducts 

criminal, civil, and administrative investigations related to the Department’s programs and 

operations.

In addition, the OIG maintains a hotline portal (https://oighotline.ed.gov) where anyone may 

report fraud, waste, or abuse involving Department of Education funds or programs as well as 

whistleblower reprisal complaints. Allegations can be reported in six languages. The OIG also 

maintains a hotline phone number (1-800-MISUSED) that provides instructions on how to report 

fraud, waste, or abuse. Each month the hotline receives approximately 300 complaints and 

approximately 200 telephone contacts. The OIG also receives over 100 complaints per month 

through Federal Student Aid’s (FSA) Feedback system.
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Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2016...............................................................................$59,256

2017.................................................................................59,256

2018.................................................................................61,143

2019.................................................................................61,143

2020.................................................................................63,000

FY 2021 BUDGET REQUEST

For fiscal year 2021, the Administration is requesting $68 million and 252 full-time equivalents 

(FTE) employment for the Office of Inspector General, an increase of $5 million more than the

fiscal year 2020 appropriation of $63 million. The increase is primarily to support additional 

FTE. A 10-year history of the OIG’s staffing is shown in the following chart:

Sixty-eight percent of the requested amount, or $46.5 million, is for Personnel Compensation 

and Benefits (PC&B) to support the requested staffing level of 252 FTE. The remaining 

$21.5 million is for Non-Personnel costs, of which $14.8 million, or 22 percent of the total OIG 

request, is for Departmental Centralized Services such as rent, telecommunications, payroll 

processing, information technology (IT), and various service contracts. The remainder of the 

Non-Personnel request, $6.8 million, or 10 percent, is for Non-Personnel costs that directly 

support the OIG’s mission, such as travel, training, and the financial statement audit contract. 

The $6.8 million also includes a payment of $201,652 to help fund the Council of the Inspectors 

General on Integrity and Efficiency (CIGIE), in accordance with §§ 6(g) and 11(c)(3)(A) of the 

Inspector General Act of 1978, as amended, 5 U.S.C. app.

The scope of the OIG planned work in fiscal year 2021 will cover multiple diverse and evolving 

programs. The OIG’s limited resources will be significantly stretched in order to conduct work 

that focuses on high-risk programs and operations, while also meeting statutory obligations. For 

0

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60

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100

120

140

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200

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260

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320

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

FTE

Fiscal Year

OIG Full-Time Equivalent (FTE) Employment

OIG ARRA FTE

OIG Regular FTE
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example, audits of Federal student financial assistance programs, which involve over 

$1.4 trillion of taxpayer dollars, are a priority. The OIG will focus on issues such as FSA’s 

implementation of new initiatives, FSA’s oversight of its business partners, and school 

accountability.

For State and local education programs, the OIG will focus significant resources on areas 

related to the disaster recovery assistance programs authorized under the Bipartisan Budget 

Act of 2018 and the Additional Supplemental Appropriations for Disaster Relief Act of 2019, 

Statewide accountability systems that are being implemented pursuant to the Every Student 

Succeeds Act (ESSA), the Student Support and Academic Enrichment program, and charter 

schools. The OIG further plans to evaluate the Department of Education’s business operations 

in areas such as human resources, Federal Student Aid’s accountability as a performancebased organization, and Office for Civil Rights’ complaint dismissal process. 

The OIG also must devote significant resources to mandated work, including annual audits of 

the Department, FSA, and Special Purpose financial statements; and annual audits and other 

reviews under the Federal Information Security Modernization Act of 2014 (FISMA), the

Improper Payments Elimination and Recovery Act, and the Digital Accountability and 

Transparency Act. The OIG will continue to assess and report on the Department’s efforts to 

identify, address, and mitigate improper payments and provide oversight of work performed by 

non-Federal auditors, including single audits of the recipients of Department funds and 

proprietary school compliance and financial statement audits. Further, the OIG will continue to 

work with the Department and the Office of Management and Budget (OMB) as they update the 

Single Audit Compliance Supplement to address risk and statutory changes. Lastly, the OIG 

will continue to work with OMB and the audit community to evaluate and improve the quality of 

single audits, including conducting outreach and providing guidance to non-Federal auditors.

On the investigative side, the OIG must devote considerable resources to combat an increase in 

the number of fraud and corruption cases involving charter schools and local school districts, to 

include fraud within the disaster recovery assistance programs. A large number of these 

complex and resource-intensive investigations involve subjects who are geographically 

dispersed, which results in greater travel costs for OIG investigators. The OIG also will continue 

to work a significant number of cases involving fraud rings in postsecondary distance education 

programs. The distance education fraud ring investigations represent, on average, 20 percent of 

the cases conducted by the OIG since fiscal year 2014.

The OIG will continue to focus resources on high-risk areas and work that will result in improved 

oversight by the Department of its programs and operations. Over the past 5 years, the OIG 

identified for recovery —in terms of questioned and unsupported costs, fines and restitutions 

ordered, recoveries, civil settlements/judgments, forfeitures/seizures, and estimated savings —

more than two dollars for each dollar it spent.
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In accordance with § 6(g) of the Inspector General Act of 1978, as amended, 5 U.S.C. app, the 

Deputy Inspector General Delegated the Duties of the Inspector General has certified that the 

amount requested for required training of our staff, including amounts designated for the 

statutorily required training provided by the Federal Law Enforcement Training Center (FLETC), 

the Inspector General Criminal Investigator Academy (IGCIA), and in the Department’s 

centralized services, would satisfy all the OIG’s fiscal year 2021 training requirements.

In fiscal year 2021, the OIG will continue to operate from various locations throughout the 

country. Approximately 60 percent of the OIG’s staff will be assigned to 16 regional and field 

office locations in Ann Arbor, Atlanta, Boston, Chicago, Dallas, Denver, Kansas City, Long 

Beach, Nashville, New York, Philadelphia, Pittsburgh, Pembroke Pines (Florida), Phoenix, 

Sacramento, and San Juan (Puerto Rico). The remaining 40 percent will be assigned to the 

Washington, D.C., headquarters office.

FY 2021 Priorities and Goals

The OIG’s strategic goals are the following: 

• Goal 1: Deliver high-quality, timely, and impactful products and services that promote 

efficiency, effectiveness, and integrity in the Department’s operations and programs. 

• Goal 2: Cultivate a diverse, highly skilled, and inspired workforce with enough resources to 

carry out the OIG’s mission. 

• Goal 3: Implement internal processes that promote organizational effectiveness, 

stewardship of resources, and accountability. 

Overhead includes: Rent, telecommunications, interagency agreements 

and IT services. Other Non-Personnel includes: Travel, advisory and 

assistance services, training, and CIGIE support.

Overhead

22%, $14.8

Other Non-Personnel

10%, $6.8

Personnel 

Compensation & 

Benefits

68%, $46.5

FY 2021 Distribution of Costs

($ in millions)
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The OIG will meet these goals through audits, investigations, human capital planning, enterprise 

risk management, and other activities. These activities may identify problems, deficiencies, or 

opportunities for improvement and the OIG will communicate the results to those who need the 

information and who will monitor the results of the work to ensure issues are addressed.

Additional Supplemental Appropriations for Disaster Relief Act of 2019

In fiscal year 2019, the OIG received $2 million in no-year funds to conduct audits and 

investigations through the Additional Supplemental Appropriations for Disaster Relief Act of 

2019, which provided disaster relief funding. The Department is authorized $165 million of 

funding in the supplemental appropriations to be used to assist in meeting the educational 

needs of individuals affected by a covered disaster or emergency. 

All comparisons in the narrative below exclude the Additional Supplemental Appropriations for 

Disaster Relief Act of 2019 funding.

No-Year Funding

The OIG is requesting language that would allow, of the amount appropriated, $2 million in noyear funding. The need for the additional flexibility is for two main reasons: (1) due to delays in 

hiring, multiyear funds provide additional flexibility to allow the OIG to restore its FTE level; and 

(2) since 22 percent of the OIG budget is associated with common support provided by the 

Department, multiyear funds allow for flexibility if actual costs are lower than expected and 

funds are returned to the OIG at the end of the fiscal year, or if actual costs are higher than 

expected and additional funds are required from the OIG.

Personnel Compensation and Benefits (PC&B) Costs

The fiscal year 2021 request of $46.5 million for Personnel Compensation and Benefits (PC&B) 

is an increase of $4.8 million over the fiscal year 2020 appropriation. The increase includes 21

additional FTE, increased PC&B costs associated with increased FERS contributions in fiscal 

year 2021, and a one percent governmentwide fiscal year 2021 pay raise.

The fiscal year 2021 request includes 252 FTE to expand audit and investigation coverage, 

enhance IT security and cybersecurity efforts, and modernize internal business operations. The 

increased staffing will better position the OIG in providing oversight of the Department, which 

administers more than 100 programs that involve 55 State and territorial educational agencies, 

approximately 18,300 school districts, 132,000 schools, more than 6,000 institutions of higher 

education, and numerous other grantees and sub-grantees. In addition, the Department’s FY 

2020 appropriation included a discretionary budget of $71 billion, and it manages an 

outstanding loan portfolio of $1.4 trillion. 

The 2021 request also covers law enforcement availability pay (required by 5 U.S.C. § 5545) 

paid to criminal investigators who are required to be available during hours that are not part of 

the regular work week. For the budget request, law enforcement availability pay is included in 

the regular personnel compensation amount.
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Audit Priorities

The OIG will focus its audit efforts on Federal student financial assistance programs and State 

and local programs, as well as high-priority departmental operations. Specifically, audit 

coverage will include the following high-risk areas:

Student Financial Assistance Programs

• William D. Ford Federal Direct Loan Program

As the Direct Loan portfolio continues to increase every year, so does the risk and costs to 

provide the credit and manage and service the loan portfolio. Our ongoing work includes a 

review of the Federal recognition process for the Accrediting Council for Independent 

Colleges and Schools. The OIG plans to conduct Audits to assess the Department’s 

implementation of new initiatives and evaluate FSA’s oversight of the Career Pathways 

program. 

• Contractors

FSA relies on contractors to operate its computer systems and perform many of the

functions necessary to process, award, service, and account for student aid. The OIG has 

consistently identified problems with FSA’s contract oversight. In fiscal year 2021, the OIG’s

work on FSA’s contractor oversight will concentrate on activities related to FSA’s Next 

Generation Financial Services Environment. 

• Postsecondary Institutions— The OIG plans to continue to conduct audits of proprietary, 

non-profit, and public schools. The interests of schools may not always align with the 

purposes of the Federal student financial assistance programs and could harm students and 

lead to the misuse of Federal funds. Planned and ongoing work may include reporting of 

campus crime statistics under the Clery Act, use of online program management providers, 

and compliance with Career Pathway program and Ability to Benefit requirements, and 

compliance with requirements for using professional judgement to adjust student’s financial 

information. 

• Department Oversight and Monitoring of Student Financial Assistance Program 

Participants— The OIG’s audits of FSA’s oversight of program participants, schools, 

lenders, and servicers have consistently identified weaknesses. The OIG plans to continue 

its review of FSA's controls over the Free Application for Federal Student Aid verification 

process, the Department's oversight of Dream Center Holdings acquisition of Education 

Management Corporation schools, and the Department's controls over schools’ Clery Act 

reporting. 

State and Local Programs

• Disaster Recovery— The Bipartisan Budget Act of 2018 authorized $2.7 billion for the 

Department to help the recovery efforts of States, school districts, schools, and institutions 

of higher education that were impacted by Hurricanes Harvey, Irma, and Maria and the 2017 

California wildfires. The OIG plans to perform work that includes reviews of funding 
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allocations, data reliability, and uses of funds under the Immediate Aid to Restart School 

Operations and Temporary Emergency Impact Aid for Displaced Students programs. We 

will also be reviewing the Department’s processes for awarding and monitoring funds under 

the Emergency Assistance to Institutions of Higher Education and Defraying Costs of 

Enrolling Displaced Students in Higher Education programs, and for reallocating campusbased student financial assistance program funds to schools impacted by the disasters.

The Additional Supplemental Appropriations for Disaster Relief Act of 2019 authorized 

$165 million for necessary expenses related to the consequences of Hurricanes Florence 

and Michael, Typhoon Mangkhut, Super Typhoon Yutu and wildfires, earthquakes, and 

volcanic eruptions occurring in calendar year 2018 and tornadoes and floods occurring in 

calendar year 2019 in those areas for which a major disaster or emergency has been 

declared. The OIG plans to perform work involving related programs that includes reviews of 

funding allocations, data reliability, and uses of funds.

• Every Student Succeeds Act (ESSA)— ESSA reauthorized the Elementary and 

Secondary Education Act. ESSA is a departure from its predecessor, as it provides States 

with more flexibility and control over education policy. The OIG plans to review States’ 

implementation of their ESSA State plans, focusing specifically on Statewide accountability 

systems, and the Department’s oversight processes to ensure that the plans are being 

followed. We will also be reviewing the Department’s oversight of grants awarded under the 

newly created Student Support and Academic Enrichment program and determining how 

States and school districts are using these funds.

• Individuals with Disabilities Education Act (IDEA)— IDEA ensures services to children 

with disabilities and governs how States and public agencies provide early intervention, 

special education, and related services. Our ongoing work includes reviews of States' 

oversight of virtual charter schools’ implementation of IDEA. We are particularly interested 

in determining whether students with disabilities who attend virtual charter schools are being 

provided with the services described in their individualized education plans. We also plan to 

conduct work on the Department’s oversight of State-level requirements related to local 

educational agencies (LEA) annual determinations under IDEA.

• Charter Schools— The Department’s Charter Schools Program provides funding that is 

intended to help create new public charter schools, replicate high-quality public charter 

schools, and disseminate information about effective practices within charter schools. The 

OIG’s ongoing work includes reviews relating to Charter School Program Grants for 

Replication and Expansion of High-Quality Charter Schools, also known as Charter 

Management Organization grants. This includes both the Department’s program oversight 

and implementation by selected grantees.

• Vocational Rehabilitation—The State Vocational Rehabilitation Services program provides 

more than $3 billion in grant funds to about eighty State Vocational Rehabilitation agencies.

These funds are intended to provide services for individuals with disabilities, consistent with 

their strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed 

choice, so that they may prepare for and engage in competitive integrated employment and

achieve economic self-sufficiency. The OIG planned work includes a review of effectiveness 

of the Department’s technical assistance to grantees under this program.
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Departmental Operations

• FSA’s Accountability as a Performance-Based Organization—The Higher Education 

Amendments of 1998 established FSA as a Performance-Based Organization to administer 

the Title IV programs. As a federally designated Performance-Based Organization, FSA

operates under a congressional mandate to achieve concrete results while improving 

performance. We plan to conduct work to assess FSA’s alignment of goals and 

performance measures and its processes to establish objectives and report on its 

performance.

• Financial Statement Audits—The Government Management Reform Act of 1994 

expanded the Chief Financial Officers Act of 1990 by requiring, among other things, the 

annual preparation and audit of organization-wide financial statements of the Executive 

Branch departments. The OIG annually oversees and monitors the work performed by an 

independent public accounting firm contracted to provide an opinion on whether 

Department-wide and FSA financial statements are fairly presented. Also, under OIG 

oversight, the independent public accounting firm reports any material weaknesses and 

significant deficiencies in the Department’s or FSA’s internal control over financial reporting. 

• Business Operations— The effectiveness and efficiency of the Department’s business 

operations are critical to ensure its capability to successfully manage its programs and 

protect its assets. The OIG regularly devotes resources to reviews that assess the 

Department’s business operations and identify opportunities for improvement. Our planned 

and ongoing work includes audits to assess selected aspects of the Department’s human 

resources functions, required assessments of the Department’s grant closeout process and 

purchase and travel card programs, and the Office for Civil Rights complaints dismissal 

process.

Investigation Priorities

At the requested staffing level, the OIG will conduct investigations of institutions (schools, 

lenders, guaranty agencies, servicers, and collection agencies) that are alleged to have 

defrauded Title IV student financial assistance programs. In addition, the OIG will continue to 

investigate allegations of corruption and fraud in State agencies and local school districts, 

including charter schools, charter management organizations and other ESSA-funded 

organizations. The OIG will also continue to investigate only the most significant fraud rings 

targeting Title IV through distance education.

Investigations of State and local programs continue to be over 21 percent of our case load due 

in part to increased identification of fraud and reporting by State and local officials resulting from

the OIG outreach efforts. The OIG continues to investigate providers of after school programs, 

including 21st Century Community Learning Centers. Fraud by providers involves falsified 

student rosters and fictitious billing, which often go undetected due to weak internal controls 

and, in some cases, corrupt public officials. 

Investigation Services continues the use of its nationwide stakeholder outreach and fraud 

awareness training initiative. The initiative covers a 3-year cycle and incorporates outreach 

opportunities through social media. The outreach plan supports OIG’s mission to promote the 
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efficiency, effectiveness, and integrity of the Department’s programs and operations. 

Investigation Services conducts investigations and provides other assistance, including 

outreach, fraud awareness training, and stakeholder education to help ensure the integrity of the 

Department’s operations and programs and identify opportunities for improvement. The OIG 

can increase its public profile and educate both Department employees and external customers 

on how to recognize fraud, waste, and abuse, and the mechanisms available for reporting 

concerns, through social media and traditional outreach. The OIG’s success relies on the 

experience and expertise of the criminal investigators who execute these outreach activities. 

This plan aims to maximize outreach efficiency to ensure enough funds are available for 

essential investigative travel.

The OIG strives to investigate matters with the highest priority that would have the most 

significant impact on the Department’s programs and operations. OIG investigations are often 

based on complex regulatory schemes, involve persons and entities that are geographically 

dispersed, and can take several years to fully develop and resolve — but can result in 

significant recoveries for the Federal government.

In fiscal year 2021, the OIG anticipates focusing on the following areas:

• Postsecondary Institutions—The OIG will continue to devote significant resources to 

conducting criminal and civil investigations of postsecondary schools (i.e., for-profit, public, 

and private nonprofit institutions), as well as other entities that participate in these programs. 

Federal student aid programs represent the largest concentration of education program 

dollars at risk. In fiscal year 2019, our postsecondary investigations resulted in the recovery 

of approximately $23.6 million. These investigations currently represent approximately 

57 percent of OIG’s investigative inventory.

• Elementary and Secondary Education Fraud—The OIG will continue to focus significant 

resources on allegations of bribery and theft involving State and local public-school officials. 

From fiscal year 2015 through fiscal year 2019, the OIG investigated 118 cases involving 

elementary and secondary education programs. During that time, these investigations have 

resulted in 132 indictments and 67 convictions, and 16 civil actions securing more than 

$52 million in restitution, fines, and civil recoveries. 

• Charter Schools—The OIG will continue to conduct criminal investigations of fraud in 

charter schools. From fiscal year 2015 through fiscal year 2019, the OIG conducted 

43 investigations, which represented 36 percent of the OIG’s Elementary and Secondary 

inventory. During that time, charter school investigations resulted in 15 indictments, 

15 convictions, and the recovery of over $13 million.

• Distance Education Fraud—The OIG will continue to conduct criminal investigations 

involving fraud resulting from the vulnerabilities associated with the delivery of distance 

education; however, the OIG will generally only focus on cases involving a significant 

financial loss. Currently, these investigations represent about 25 percent of all open OIG 

cases. The OIG will continue to refer matters that are not investigated or prosecuted to the

• Department so that it can take appropriate action to avoid future improper payments. 

Distant education fraud rings represent, on average, 19 percent of the cases conducted by 
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the OIG between fiscal years 2015 and 2019. During this time period, investigations in this 

area resulted in 165 indictments, 140 convictions, and recoveries of approximately 

$17 million. The OIG also referred to the Department distance education matters not 

investigated by the OIG totaling more than $18.4 million in potential fraud.

• Whistleblower Reprisal Investigations—The OIG continues to conduct administrative 

investigations of whistleblower reprisal complaints, as well as evaluate the underlying 

allegations to determine if criminal or civil investigations are warranted. In 2019, the OIG 

received 26 whistleblower reprisal complaints resulting in 21 inquiries initiated by the OIG to 

resolve these allegations.

IT Audits and Cybercrime Priorities

The OIG requested staffing level includes staff with expertise necessary to conduct audits of the 

Department’s IT systems and operations, investigate cybercrime, and provide technical support 

for investigative activities, including digital forensics, financial document analysis, and data 

analytics. 

The OIG data analytics efforts will focus on the detection of illegal electronic financial 

transactions, including unauthorized payment requests, ineligible program participants, and 

program abuse and fraud. This data analytics activity requires the OIG to continue to maintain 

its data risk assessment model: E-Fraud Student Fraud Ring System, state educational 

agencies (SEA) and local educational agencies (LEA) Ranking Model, and Purchase Card Risk 

Model. These systems allow the OIG staff to discern patterns indicating fraud, waste, and 

abuse and allow dynamic audit and investigative planning using risk-based analysis. The OIG 

will also conduct data analytics projects to proactively identify criminal activity impacting the 

Department’s programs.

The OIG cybercrime investigations include the investigation of intrusions and unauthorized 

access into the Department’s systems and criminal misuse of the Department’s systems and 

electronic data. These investigations also include the investigations of intrusions into higher 

education computer systems used to administer student financial aid. While conducting these 

investigations, the OIG will identify systemic IT security problems as new threats emerge. OIG 

cybercrime investigators also conduct advanced digital forensics in support of high-technology 

investigations, as well as supporting traditional white-collar fraud cases.

The OIG IT audit efforts will include assessing the effectiveness of the Department’s information 

security program as mandated by FISMA. As part of that review, the OIG will continue to 

evaluate the effectiveness of general and technical IT security controls of the Department’s 

mission-critical and support systems and the Department’s overall information security plans, 

programs, and practices. Without the requested increase in appropriations for fiscal year 2021, 

the OIG’s IT audits will be limited to statutorily requirements.

Non-Personnel Costs

OIG is requesting $21.5 million in fiscal year 2021 for Non-Personnel costs, $182,000 more than 

the fiscal year 2020 appropriation. Of the total, $14.8 million is for Departmental Centralized 

Services (overhead expenses), including the Department’s IT infrastructure and support 
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contracts (Department IT contracts), and $6.8 million is for other non-personnel operational 

costs.

Departmental Centralized Services

OIG is requesting $14.8 million in fiscal year 2021 for Non-Personnel Overhead, $384,000 less 

than the fiscal year 2020 appropriation. The major items included in overhead costs are rent, 

interagency agreements for services such as payroll processing, guard services, background 

security investigations, communications, and IT services and contracts. The communications 

and IT amounts will be used primarily for the Department’s IT contracts, which cover IT 

equipment, telecommunications, IT processing services, network support, end-user support, 

maintenance, and improvements. Rent and the Department’s IT contract use approximately 86

percent of the centralized services resources.

Departmental Centralized Services

(dollars in thousands)

Item

2020

Appropriation 2021 Request Difference

Rent $7,133 $7,133 $0

Central IT 6,101 5,587 -514

Other Central Support 1,903 2,033 130

Centralized Services $15,137 $14,753 -$384

Other Non-Personnel Costs

Travel

OIG is requesting $1.5 million in fiscal year 2021 for travel, $78,000 more than the fiscal 

year 2020 appropriation. The requested amount for fiscal year 2021 covers travel expenses for 

the requested staff of auditors, investigators, and other specialists and is necessary to perform 

the OIG audit and investigative mission. 

Most OIG work involves travel to state educational agencies (SEAs), local educational agencies 

(LEAs), schools, other grantees, loan servicers, contractors, and other recipients of Federal 

education funds, to conduct audits and investigations, interview witnesses and subjects, and 

gather evidence. Many of these entities and people are not located in the cities where the OIG 

has staff, thus necessitating travel.

Advisory and Assistance Services

OIG is requesting $327,000 in fiscal year 2021 for advisory and assistance services, level with 

the fiscal year 2020 appropriation, to contract for audit services that support mandated OIG 

FISMA work. The requested funding level would provide contractor support for IT security 
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reviews of systems; audits of the Department’s IT contracts; reviews of systems development 

life cycles, enterprise architecture, and IT project management; and computer forensic analysis. 

Other Services

OIG is requesting $2.5 million in fiscal year 2021 for other services, $140,000 more than the

fiscal year 2020 appropriation. This amount is primarily to contract with an independent certified 

public accounting firm to audit the Department-wide financial statements. In accordance with 

the Inspectors General Act of 1978, as amended, and the Chief Financial Officer Act, the OIG

oversees the financial statement audits. The audits will result in reports on the Departmentwide financial statements, FSA’s financial statements, and the Closing Package. Audits will 

examine and analyze account balances, review applicable financial systems, and evaluate 

internal controls and compliance with significant laws, regulations, contracts, and grant 

agreements. Audit results will assess the fair presentation of the financial statements, make 

recommendations for improving financial management, accountability and stewardship, and 

identify areas requiring further review by management. The 2021 request also includes 

$488,000 for car leases, an increase of $12,000 over the fiscal year 2020 appropriation.

Training

OIG is requesting $394,000 in fiscal year 2021 for training, $25,000 more than the fiscal year

2020 appropriation, for the OIG-specific training of auditors, investigators, and business 

operations staff. Within the Departmental Centralized Services section, the OIG requests 

$180,000 in support of Department training operations, which reflects a $11,000 increase from 

the fiscal year 2020 appropriation.

Training funds are needed to provide professional and statutorily mandated training for the 

OIG’s auditors and investigators. As required by the Government Accountability Office, auditors 

performing work under generally accepted Government auditing standards must maintain 

professional competencies through continuing professional education (CPE) by completing,

every 2 years, at least 80 hours of CPE that directly enhance the auditor’s professional 

proficiency to perform audits or attestation engagements. At least 20 hours of the 80 should be 

completed in any 1 year of the 2-year period. The OIG’s criminal investigators must also 

complete periodic statutory and Attorney General-mandated law enforcement training 

requirements to maintain their statutory law enforcement authorities. The OIG maintains a staff 

of accredited trainers to deliver firearms and other mandated training to the OIG investigators, 

and the trainers require specific refresher courses to maintain their accreditation. In addition, 

the requested amount will cover the costs of review courses and examinations to obtain 

professional certifications, such as Certified Public Accountant, Certified Information Systems 

Auditor, Computer Forensic Examiner, and Certified Fraud Examiner; send the OIG 

investigators to FLETC/IGCIA; and obtain advanced IT skills to address ever increasing

computer requirements and processes, as well as combat new threats and weaknesses.

To control the costs associated with mandatory training requirements, the OIG plans to continue 

to use such technologies as WebEx, video conferencing, and web-enabled training courses to 

accomplish continuing education requirements, as well as using qualified OIG staff to deliver 

required training while attending only essential/critical vendor-offered courses. The OIG will 
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also continue to minimize training costs by having staff attend CIGIE-supported or OIG 

community-sponsored training events.

Goods/Services from Federal Sources

OIG is requesting $457,000 in fiscal year 2021 for goods and services from Federal sources, 

$30,000 less than the fiscal year 2020 appropriation. Within this request, $201,652 will cover 

the OIG’s funding support for the Council of the Inspectors General on Integrity and 

Efficiency (CIGIE). This contribution is 0.30 percent of the OIG 2021 designated funding level 

based on a total budget request of $68 million, including the CIGIE amount. The fiscal year 

2021 request also includes $182,315 in miscellaneous interagency agreements covering a 

variety of services provided by other Federal agencies, of which $95,000 is designated for 

Federal Law Enforcement Training Center (FLETC) and Inspector General Criminal Investigator 

Academy (IGCIA) training cost.

Equipment Operations/Maintenance

OIG is requesting $5,000 in fiscal year 2021 for equipment operations/maintenance, level with 

the fiscal year 2020 appropriation, for equipment repair and maintenance of copiers.

IT Services/Contracts

OIG is requesting $630,000 in fiscal year 2021 for IT services/contracts, $23,000 more than the 

fiscal year 2020 appropriation, for contracts for system support and expertise. This request 

includes programmer services and maintenance for various OIG systems and applications, and 

services and support for IT security operations, computer forensics, and data analytics experts. 

None of these costs are covered by the Department Centralized Services IT funding.

IT Equipment/Software 

OIG is requesting $880,000 in fiscal year 2021 for IT equipment/software, $63,000 more than 

the fiscal year 2020 appropriation, to support non-centralized IT software maintenance 

agreements, software license renewals, and equipment purchases. 

Building Alterations

OIG is requesting $519,000 in fiscal year 2021 for building alterations, $421,000 more than 

the fiscal year 2020 appropriation, in building alterations costs not included in the 

Department Centralized Services. The amount has increased due to anticipated expiring 

leases. This amount will provide funding for miscellaneous facilities projects, such as space 

reconfigurations, furniture repair and/or replacement, and other costs associated with 

maintaining the work environment.
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PROGRAM PERFORMANCE INFORMATION

Specific results from audits and investigations are summarized twice yearly in the OIG 

Semiannual Report to Congress. All OIG reports are available on OIG’s website, 

http://www2.ed.gov/about/offices/list/oig/reports.html.

Performance Measures:

In 2017, OIG developed its “Five-Year Strategic Plan” covering fiscal years 2018-2022. The plan 

describes the focus and direction of OIG’s operations, establishes our organizational goals, and 

outlines the strategies we will employ to reach those goals and the measures we will use to 

evaluate our performance.

Our first goal is to deliver high-quality, timely, and impactful products and services that promote 

efficiency, effectiveness, and integrity in the Department’s operations and programs. The 

strategies adopted to achieve this goal include: (1) maximize value through risk-based resource 

allocation, (2) provide value-added audit, investigative, and other services, (3) deliver timely 

results, (4) effectively and efficiently use technology to identify threats to the department’s 

programs and operations, (5) promote data protection and information technology security, and 

(6) conduct effective outreach to promote programmatic and operational integrity.

Our second goal is to cultivate a diverse, highly skilled, and inspired workforce with enough

resources to carry out the OIG’s mission. The strategies implemented to achieve this goal are 

to: (1) cultivate workforce excellence, (2) provide necessary resources, (3) promote an inclusive 

workplace environment, and (4) recognize achievement. OIG issued a Diversity and Inclusion 

Strategic Plan this year that articulated specific strategies and actions to move OIG forward

towards this second goal.

Our third goal is to implement internal processes that promote organizational effectiveness, 

stewardship of resources, and accountability. The strategies in place to achieve this goal are to: 

(1) promote effective financial operations, (2) deliver superior operational support, (3) provide 

effective quality assurance, and (4) apply an effective enterprise risk management framework.

Performance measures are reviewed annually and revised as necessary. Several key 

performance measures are shown below.

Measure: Audits initiated each year in accordance with policy and focused on areas of high risk 

or significant importance.

Year Target Actual 

2016 85% 100%

2017 85 100

2018 85 100

2019 85 100

2020 85

2021 85
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Measure: Investigations initiated each year in accordance with policy and focused on areas of 

high risk or significant importance.

Year Target Actual 

2016 80% 90%

2017 80 89

2018 80 92

2019 80 89

2020 75

2021 75

Measure: Recommendations in reports issued during the fiscal year accepted by the 

Department and corrective action plans agreed to by OIG management.

Year Target Actual 

2016 90% 99%

2017 90 98

2018 90 95

2019 90 93

2020 90

2021 90

Measure: Draft and final audit and alternative project reports issued in accordance with policy, 

including applicable standards, and by the agreed-upon date.

Year Target Actual 

2016 70% 90%

2017 70 93

2018 70 92

2019 70 96

2020 70

2021 70
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Measure: Preliminary inquiries of fraud, waste, and abuse processed for case initiation 

(investigation) or closure with a final disposition within 120 days.

Year Target Actual 

2016 75% 79%

2017 75 76

2018 75 76

2019 70 77

2020 70

2021 70

Measure: Preliminary inquiries converted to full investigations by OIG management that 

resulted in a criminal, civil or administrative action, or monetary result (Investigation Services).

Year Target Actual 

2016 74% 95%

2017 74 93

2018 70 81

2019 70 80

2020 70

2021 70

Measure: Preliminary inquiries converted to full investigations by OIG management that 

resulted in a criminal, civil or administrative action, or monetary result, or actionable referral to 

the Department (ITACCI).

Year Target Actual 

2016 65% 75%

2017 50 63

2018 50 50

2019 70 100

2020 70

2021 70
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Measure: Information technology audits issued in accordance with policy and accepted by 

management by the agreed upon date.

Year Target Actual 

2016 75% 100%

2017 75 100

2018 75 100

2019 90 98

2020 75

2021 75

Measure: Substantive comments provided by OIG resulted in changes in legislation, 

regulations, or other policies.

Year Target Actual 

2016 70% 85%

2017 70 77

2018 70 86

2019 70 78

2020 70

2021 70

Measure: Freedom of Information Act responses processed in accordance with statutory 

requirements and delivered to requestors within required deadlines.

Year Target Actual

2016 90 91

2017 90 77

2018 90 91

2019 90 78

2020 90

2021 90

Measure: Hotline complaints processed in accordance with policy and within the established 

deadlines.

Year Target Actual 

2016 95% 100%

2017 95 100

2018 75 94

2019 80 95

2020 85

2021 85