Department of Education

OFFICE OF INSPECTOR GENERAL

Fiscal Year 2016 Budget Request

CONTENTS

Page

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

Amounts Available for Obligation........................................................................................BB-2

Obligations by Object Classification....................................................................................BB-3

Summary of Changes.........................................................................................................BB-4

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

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

Activity:...............................................................................................................................BB-8

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, [$57,791,000] $59,256,000. (Department 

of Education Appropriations Act, 2015)

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Amounts Available for Obligation

(dollars in thousands)

Appropriation and Adjustments 2014 2015 2016

Discretionary appropriation:

Discretionar y Appropriation $57,791 $57,791 $59,256

Total, appropriation 57,791 57,791 59,256

Unobligated balance expiring -1,374 0 0

Total, direct obligations 56,417 57,791 59,256

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Obligations by Object Classification

(dollars in thousands)

Object Class 2014 2015 2016

11.10 Full-time permanent 26,410 28,268 28,751

11.31 Full-time temporary 248 238 604

11.32 Part-time 82 119 121

11.51 Overtime 1,937 0 0

11.52 Awards 298 296 297

Compensation subtotal 28,975 28,921 29,773

12.00 Benefits 10,205 10,627 11,224

13.00 Benefits for former personnel 175 0 0

Comp/benefits subtotal 39,355 39,548 40,997

21.00 Travel 1,081 1,626 1,523

22.00 Transportation of things 28 300 75

23.10 Rental payments to GSA 5,445 5,631 6,001

23.31 Communications 193 212 218

23.32 Postage/fees 21 15 14

Subtotal 23 5,659 5,858 6,233

24.00 Printing and reproduction 0 0 0

25.10 Advisory and assistance services 816 660 665

25.21 Other services 1,810 2,056 2,152

25.22 Training/tuition contracts 224 479 458

25.23 Field readers 0 0 0

25.30 Goods/services from Federal sources 1,554 1,246 1,304

25.40 Operations/maint of facilities 0 0 0

25.70 Operations/maint of equipment 4 11 12

25.72 IT services/contracts 4,816 4,688 4,952

Subtotal 25 9,224 9,140 9,543

26.00 Supplies 145 136 131

31.10 IT equipment/software 722 614 549

31.30 Other equipment 149 36 33

Subtotal 31 871 650 582

32.00 Building alterations 54 533 172

43.10 Prompt payment interest 0 0 0

Total, Obligations 56,417 57,791 59,256

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OFFICE OF INSPECTOR GENERAL

Summary of Changes

(dollars in thousands)

2015 ............................................................................................ $57,791

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

Net change ........................................................... +1,465

Increases: 2015 base

Change 

from base

Built-in:

Increase in salaries and benefits due to the proposed 1.3

percent pay raise, one additional paid day, and increased FERS 

contribution rates.

$39,099 +$975

Increase in GSA rental payments due to anticipated rate 

increases and tax escalations. 5,631 +370

Program:

Increase in salaries and benefits for 3 additional FTE 0 +499

Increase in central information technology. 3,659 +229

Net increase in central support non-pay charges. 1,514 +68

Increase in OIG’s cost for the audit of the Department’s financial 

statements 968 +50

Increase in information technology contracts for support for IT 

security operations, computer forensics and data mining experts 

for the Information Technology Audits and Computer Crimes 

(ITACCI) group. 1,029 +35

Increase in miscellaneous interagency agreements. 192 +34

Increase in other services for car leases, which partially offsets 

the decrease in travel

507 +25

Subtotal, increases +2,285

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Summary of Changes

(dollars in thousands)

Decreases: 2015 base

Change 

from base

Program:

Decrease building alterations. $533 -$361

Decrease in transportation for permanent changes of station. 300 -225

Decrease in travel. 1,626 -103

Decrease in non-centralized IT equipment purchases. 589 -65

Decrease in training 346 -36

Decrease in benefits due to lower transit subsidies 100 -26

Net changes in other areas. 1,698 -4

Subtotal, decreases -820

Net change +1,465

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Authorizing Legislation

(dollars in thousands)

Activity

2015

Authorized

2015

Estimate

2016

Authorized

2016

Request

Inspector General (DEOA, Section 212) Indefinite $57,791 Indefinite $59,256

Total definite authorization 0 0

Total appropriation 57,791 59,256
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Appropriations History

(dollars in thousands)

Year

Budget 

Estimate

to Congress

House 

Allowance

Senate 

Allowance Appropriation

2007 $53,145 N/A1N/A1$48,802

Transfer (P.L. 110-5) 0 0 0 1,464

2008 53,239 $53,239 $54,239 50,849

2009 54,539 54,539254,539254,539

Recovery Act Supplemental 

(P.L. 111-5)

0 0 4,000 14,000

2010 60,053 60,053 60,053360,053

2011 65,238 60,053465,238359,9335

2012 67,187 59,933659,933659,820

2013 62,401 59,820759,820756,691

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

2014 62,347 N/A859,700357,791

2015 59,181 N/A858,791957,791

2016 59,256

1 This account operated under a full-year continuing resolution (P.L. 110-5). House and Senate Allowance 

amounts are shown as N/A (Not Available) because neither body passed a separate appropriations bill. 2 The levels for the House and Senate allowances reflect action on the regular annual 2009 appropriations bill, 

which proceeded in the 110th Congress only through the House Subcommittee and the Senate Committee. 3 The level for the Senate allowance reflects Committee action only. 4 The level for the House allowance reflects the House-passed full-year continuing resolution. 5 The level for appropriation reflects the Department of Defense and Full-Year Continuing Appropriations Act, 2011 

(P.L. 112-10). 6 The level for the House allowance reflects an introduced bill and the level for the Senate allowance reflects 

Senate Committee action only. 7 The level for the House and Senate allowances reflect action on the regular 2013 appropriations bill, which 

proceeded in the 112th Congress only through the House Subcommittee and the Senate Committee. 8 The House allowance is shown as N/A because there was no Subcommittee action.

9The level for the Senate allowance reflects Senate Subcommittee action only.

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Activity:

Inspector General

(DEOA, section 212)

(dollars in thousands)

FY 2016 Authorization: Indefinite

Budget Authority:

Annual Fund

2015 2016 Change

Personnel costs $39,548 $40,997 +$1,449

Non-Personnel costs 18,243 18,259 +16

Total 57,791 59,256 +1,465

FTE 241 244 3

PROGRAM DESCRIPTION

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

integrity in the Department of Education's programs and operations through independent and 

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

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 in headquarters and the regional offices 

make these inquiries.

To carry out its responsibilities, 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 Office also investigates 

allegations of fraud by recipients of program funds and of employee misconduct involving the 

Department’s programs and operations.

In addition, OIG operates both a website, http://www.ed.gov/misused, and a hotline (1-800-

MISUSED) that anyone may call to report fraud, waste, or abuse involving Department of 

Education funds or programs or to make suggestions for saving Federal funds and for ways 

Federal education services could be more effective.

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Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2011 .................................................................. $59,933

2012 .................................................................... 59,820

2013 .................................................................... 57,791

2014 .................................................................... 57,791

2015 .................................................................... 57,791

FY 2016 BUDGET REQUEST

The Office of Inspector General (OIG) requests $59.256 million and 244 full time equivalents 

(FTE) for fiscal year (FY) 2016, an increase of $1.465 million over the FY 2015 level. A 10-year 

history of the OIG’s staffing is shown in the following chart:

Over 69 percent of the requested amount, or $40.997 million, is for personnel compensation 

and benefits to support the requested staffing level of 244 FTE. The remaining $18.259 million 

is for non-personnel costs, of which $11.471 million, or 19 percent of the total OIG request, is for 

administrative and overhead services, such as rent, telecommunications, payroll processing, 

and information technology (IT) services contracts. The remainder of the non-personnel 

request, $6.788 million, or 11 percent, is for non-personnel costs that directly support the OIG’s 

mission, such as travel, training, and the financial statement audit contract. This amount 

includes a payment of $161,000 to help fund the Council of the Inspectors General on Integrity 

and Efficiency (CIGIE), in accordance with 5 U.S.C. app. 3 § 11(c)(1).

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

2007200820092010201120122013201420152016

FTE

Year

OIG Full-Time Equivalent Employment (FTE)

OIG ARRA FTE

OIG Regular FTE

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The scope of OIG planned work in FY 2016 will cover multiple, diverse, and evolving programs. 

The OIG’s limited resources will be significantly stretched in order to conduct much-needed 

work that focuses on high risk programs and operations while meeting statutory obligations. For 

example, continuing audits of Federal student assistance programs, which involve hundreds of 

billions of taxpayer dollars, are a high priority. The OIG will focus on issues such as the rising 

rate of loan delinquencies and defaults, the ability of the Department to make and service 

student loans, and the challenges presented by the introduction of new loan program 

requirements.

The OIG anticipates conducting reviews of Federal Student Aid’s (FSA) oversight of contractors 

involved in such activities as servicing direct loans, collecting on defaulted loans, and operating 

FSA computer systems. The OIG plans to look at issues concerning the delivery of education 

and FSA’s oversight of program participants, schools, and servicers. For State and local 

education programs, the OIG will focus resources on areas related to the Individuals with 

Disabilities Education Act (IDEA) and Elementary and Secondary Education Act (ESEA) 

programs, data reliability, and high-risk grantees. The OIG also plans to expend resources to 

assess the Department’s administration of discretionary grants, review the Department’s 

monitoring and controls over contracts, and evaluate the Department’s business operations in 

areas such as performance data.

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

dramatic increase in the number of fraud and corruption cases involving charter schools and 

local school districts. The large number of these complex and resource-intensive investigations 

often involve subjects who are geographically dispersed, which results in greater travel costs for 

the OIG investigators. The number of cases involving fraud in higher education distance 

education programs also has skyrocketed. Although the OIG issued a report recommending 

that the Department implement program improvements to reduce distance education fraud, the 

number of these cases still represents about 24 percent of all the OIG investigations. Lastly, the 

OIG has new statutory and regulatory whistleblower protection investigative responsibilities, 

which are administrative but require the use of criminal investigator resources to address cases.

The OIG also must devote significant resources to statutory and regulatory 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 Management Act

(FISMA) and Improper Payments Elimination and Recovery Act. The OIG must continue to 

assess and report Departmental efforts to identify, address, and mitigate improper payments 

and provide oversight of work performed by non-Federal auditors, including single audits and 

compliance audits of the recipients of Department funds. Further, with the possible 

reauthorization of the ESEA and the IDEA, the OIG will have to work with the Department and 

the Office of Management and Budget (OMB) to develop new audit guidance to update the 

Single Audit Compliance Supplement to address changes to the laws, such as risks identified 

with IDEA maintenance of effort and State assessment scoring. The OIG will also continue to 

work with OMB and the audit community to evaluate and improve the quality of single audits.

The OIG faces significant challenges to performing the work necessary to assess the 

Department’s compliance with multiple statutory requirements and to prevent waste, fraud, and 

abuse. As the OIG’s cost of operations rose due to increased audit and investigative 

requirements, the OIG’s budget remained static at approximately $60 million. In FY 2013, 

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sequestration resulted in a budget reduction of 4%. A modest budget increase in FY 2014 

allowed OIG to lessen the impact of the sequestration reduction. However, we continue to 

struggle to cover multiple competing high priority requirements with reduced staffing levels.

The FY 2016 request funds a staffing level of 244, an increase of 3 FTE over the 2015 level. 

The requested funding would provide staff with the tools needed to perform their work. It 

provides funding for FISMA contractor support. Without contractor support, the OIG would have 

to significantly reduce the scope and coverage of the Department’s IT security functions and 

limit the type of technical testing performed on the Department’s and FSA’s data systems and

infrastructure. At the FY 2016 request level, the OIG would obtain contractor support for the 

development of data mining that assists in identifying patterns of fraud and risk, allowing the 

OIG to better target audit and investigative work. The request level would provide adequate 

training funds to ensure auditors comply with mandatory Federal auditing standards for 

continuing professional education and criminal investigators receive training required to 

maintain their law enforcement authority. Travel funds requested would prevent the OIG from 

having to reduce the number of sites covered under nationwide audit projects and from 

potentially limiting the geographic reach of investigations. Although a smaller staff will result in 

fewer audits and investigations and may limit the OIG’s ability to respond to Departmental and 

congressional requests for specific reviews, the OIG will continue to focus needed resources on 

high risk areas and work that would have great potential to result in significant savings to the 

Government. In FY 2013, 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 of two dollars for each dollar it spent.

In accordance with the Inspector General Act, 5 U.S.C. app. 3 § 6, the Inspector General 

certifies that the amount of $628,000 requested for required training of our staff, including the 

amount designated in the Department’s centralized services and the statutorily required training 

Overhead

$11.5 

Other Non-Personnel

$6.8 

Personnel

$41.0 

FY 2016 Distribution of Costs

($ in millions)

Overhead includes: Rent, telecommunications, interagency agreements 

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

assistance services, training, and CIGIE support.

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provided by the Federal Law Enforcement Training Center (FLETC) and the Inspector General 

Criminal Investigator Academy (IGCIA), would satisfy all the OIG’s FY 2016 training 

requirements.

________________________

Kathleen Tighe

Inspector General

In FY 2016, the OIG will continue to operate from 19 regional and field offices, as well as 

headquarters in Washington, DC. Approximately 66 percent of the OIG’s staff will be assigned 

to regional offices, field offices, and flexiplace locations in New York, Boston, San Juan (Puerto 

Rico), Philadelphia, Washington, D.C., Atlanta, Chicago, Ann Arbor, Nashville, St. Paul, Dallas, 

Denver, Austin, Kansas City, Sacramento, Long Beach, Pittsburgh, Phoenix, and Pembroke 

Pines. The remaining 34 percent will be located in the Washington, DC headquarters office.

FY 2016 Priorities and Goals

The OIG’s strategic goals are:

• Goal 1: Improve the Department’s ability to effectively and efficiently implement its 

programs to promote educational excellence and opportunity for all students.

• Goal 2: Strengthen the Department’s efforts to improve the delivery of student financial 

assistance.

Bos ton

New York City

Philadelphia

Washington, D.C.

Regional Offices

Field Offices

Location of OIG Headquarters,

Regional, and Field Offices

Denv er Kans as

City

Chic ago

Atlanta

Dallas

Sac ram ento

Long Beac h

Puerto Ric o

Pem brok e 

Pines

Pitts burgh

St. Paul

Aus tin

Phoenix

Nas hv ille

Ann Arbor

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• Goal 3: Protect the integrity of the Department’s programs and operations by detecting and 

preventing vulnerabilities to fraud, waste, and abuse.

• Goal 4: Contribute to improvements in the Department’s business operations.

• Goal 5: Strive for a diverse and skilled workforce that is provided with the means and 

assistance necessary to achieve OIG’s mission with excellence, accountability, and integrity.

The OIG will meet these goals through audits, investigations, inspections, human capital 

planning, and other activities. These activities will identify problems, deficiencies, or 

opportunities for improvement and will communicate the results to the people who need the 

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

Personnel Costs

The FY 2016 budget request of $40.997 million for personnel compensation and benefits is an 

increase of $1.449 million from the FY 2015 level. The request covers a proposed 2016

1.3 percent government-wide pay raise and an additional paid day, as well as increased 

benefits costs. The request provides funding for a staffing level of 244 FTE and covers law 

enforcement availability pay (required by 5 U.S.C. § 5545) paid to 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.

The OIG’s request for 244 FTE in FY 2016 is 3 FTE more than the FY 2015 level. The 244 FTE 

for FY 2016 will be used to support audit, investigation, and inspection activities, as well as IT 

audits and computer crime investigations (cyber security) for all Department programs. This 

minimal staff is responsible for providing oversight of the Department, which administers over 

150 educational programs and is responsible for approximately $71 billion in discretionary 

grants and a loan portfolio of over $1 trillion. The funding is distributed to 55 State and territorial 

educational agencies, more than 13,000 school districts, and over 6,000 institutions of higher 

education.

To maintain staffing levels, the OIG continues to restrict hiring to that necessary to fill only 

essential positions.

Audit Priorities

In FY 2016, the OIG will focus its audit efforts on Federal student 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

• Student Loan Debt — the aggregate amount of outstanding Federal and private student 

loan debt has passed the total amount of outstanding credit card debt and exceeds 

$1 trillion. Rising tuitions and fees will result in increased borrowing and defaults. The 

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OIG’s work may examine such issues as increased defaults, questionable debt collection 

practices, wage garnishment, reporting to credit bureaus, and loan rehabilitation practices.

• William D. Ford Federal Direct Loan Program — As the Direct Loan portfolio increases 

and all new loans are now originated by the Department, the Department’s resources will 

continue to be stretched and its ability to make and service student loans will be tested. 

Audits will assess the Department’s diligence in making and consolidating loans, addressing 

borrower complaints, and managing Title IV Additional Servicers (TIVAS) and the increasing 

number of non-profit servicers.

• New programs and requirements — Over the past 6 years, the Higher Education Act 

(HEA) and its regulations have been amended numerous times, implementing new 

programs and requirements. The OIG oversight may focus on deferments, forbearance, 

and forgiveness provisions, PLUS loans for graduate students, 3-year cohort default rates, 

and maximum lifetime limits for receipt of Pell grants.

• Contractors — FSA relies on contractors to service Direct Loans, collect on defaulted 

loans, design and operate its computer systems, and perform many other functions. The 

OIG has consistently identified problems with FSA’s contract oversight. In 2016, the OIG 

work on FSA’s contractor oversight will concentrate not just on individual contractors, but the 

overall contracting process to identify root causes for contract problems. OIG work will also 

examine FSA’s ability to effectively oversee IT development.

• School Compliance Issues:

o Schools — The OIG plans to continue to conduct audits and inspections of

proprietary schools. These schools are driven by profit, and their need for growth is 

often counter to the purposes of the Federal student financial assistance programs, 

which could harm students and lead to the misuse of Federal funds. The OIG will 

also conduct audits of not-for-profit and public schools.

o Issues Concerning Title IV and the Delivery of Education — In addition to 

traditional semester, trimester, and quarter programs, institutions use modules and 

non-standard terms. There are two modes of education delivery ─ on ground and 

distance education. The progress of the student in an educational program can be 

measured in credit hours earned or through direct assessment. The diversity of 

education delivery complicates the Title IV programs. The areas that the OIG will 

audit include student eligibility, institutional eligibility, disbursement of Title IV 

financial aid, adequacy of accreditation review, and State authorization.

o 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 

may conduct follow-up audits on past work or audits of emerging areas.

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State and Local Programs

• IDEA — The OIG will address a variety of issues related to IDEA funding in traditional and 

online charter schools.

• ESEA — The OIG will audit key areas such as Department-issued ESEA waivers, charter 

schools, and teacher quality initiatives.

• Compliance Requirements and Monitoring at State Education Agencies (SEAs) and 

Local Education Agencies (LEAs) — Each State and local program comes with its own set 

of compliance requirements that takes time and resources to administer. SEAs and LEAs 

must conduct sub-recipient monitoring for each program; however, States may lack 

sufficient resources for monitoring or designing an effective monitoring program. Prior 

audits have identified numerous instances of noncompliance and deficiencies; therefore, the 

OIG will review selected SEAs and LEAs for compliance and general administrative 

capability. The OIG also will review States’ implementation of complex discretionary grant 

programs, such as Race to the Top.

• Data Reliability — Many critical decisions in Education programs are based on data 

supplied by grantees. To be useful, the data must be accurate, reliable, and complete. The 

OIG will examine the accuracy of grantee data, including reviewing performance data 

related to the Vocational Rehabilitation State Grant Program.

Departmental Operations

• Discretionary Grants — The Department awards a significant number of discretionary 

grants through its program offices. Effective monitoring and oversight are essential for 

ensuring that grantees meet grant requirements and achieve program goals and objectives. 

The OIG will continue to review processes and controls in place over competitions and grant 

funds and determine whether the Department’s monitoring of grants is sufficient to ensure 

that grantees are performing the work as stated in their grant agreements.

• Contracts — The Department contracts for many services that are critical to its operations. 

These services include systems development, operation, and maintenance; loan servicing 

and debt collection; technical assistance for grantees; administrative and logistical support; 

and education research and program evaluations. Responsibility for oversight and 

monitoring of contracts and contractor performance at the Department is shared by staff in 

the program offices and the Department’s Contracts and Acquisition Management, a 

component of the Office of the Chief Financial Officer. The FSA program office has 

delegated authority for its own procurement function. The OIG will review the Department’s 

monitoring processes and controls to ensure that it receives the quality and quantity of 

products or services for which it is paying.

• Business Operations — The OIG will devote resources to reviews which impact the 

Department’s business operations. This includes planned work to assess the value of 

performance data collected by the Department, the resolution of complaints by the 

Department’s Office of Civil Rights, and required assessments of the Department’s purchase 

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card and travel card programs to identify illegal, improper, or erroneous purchases and 

payments.

Investigation Priorities

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

guaranty agencies, servicers, collection agencies, and schools) that participate in the 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, and other ESEA funded programs.

Investigations of State and local programs are on the rise due in part to increased awareness by 

State and local officials resulting from OIG outreach efforts. For example, the OIG has seen a 

large growth in Supplemental Educational Services complaints and cases since FY 2011. 

These crimes involve falsified student rosters and fictitious billing for student tutoring services, 

which often go undetected due to weak internal controls and in some cases, corrupt public 

officials.

In addition to these investigations, the OIG will continue to investigate allegations of 

whistleblower reprisals as mandated by the American Recovery and Reinvestment Act of 2009. 

The OIG has received almost four times more Recovery Act whistleblower reprisal complaints 

than any other federal OIG. Additionally, the OIG is responsible for conducting investigations of 

whistleblower reprisals raised by employees of all Department contractors, subcontractors, and 

grantees, as required under the National Defense Authorization Act for Fiscal Year 2013 

(NDAA), and for investigations relating to Department employees who allege that they lost their 

security clearance due to whistleblowing, under Presidential Policy Directive-19 (PPD-19).

The OIG strives to investigate matters with the highest priority (established by our investigative 

priority matrix) that would have the most significant impact on the Department’s programs and 

operations. The 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.

In FY 2016, the OIG anticipates focusing on the following areas:

• Postsecondary Institutions — Continue to devote significant resources to conducting 

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

non-profit 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. As of December 2014, the OIG had 118 ongoing investigations of postsecondary 

institutions, representing about 30 percent of the OIG investigative inventory. 

• Charter Schools — Continue to conduct criminal investigations of fraud in charter schools. 

Since FY 2005, the OIG has opened 65 charter school investigations resulting in 

41 indictments, 30 convictions, and over $11.3 million recovered to date.

• State and Local School Corruption — Continue to focus significant resources on 

allegations of bribery and theft involving State and local public school officials. From 

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FY 2008 to December 2014, the OIG investigations involving State or local education 

agencies have resulted in 162 indictments.

• Distance Education — Continue to conduct criminal investigations involving fraud 

resulting from the vulnerabilities associated with the delivery of distance education. 

Investigations in this area represent about 24 percent of all the OIG investigations.

• Whistleblower and Recovery Act Fraud — Continue to conduct statutorily mandated 

administrative investigations of whistleblower reprisal complaints, as well as criminal and 

civil investigations of theft and corruption involving Recovery Act funds still within the 

statute of limitations. Additionally, the OIG is also now required to conduct whistleblower 

reprisal investigations as mandated by the NDAA and PPD-19.

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 and data mining. 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 requires the OIG to continue to maintain its data risk assessment systems —

E-Fraud Student Fraud Ring System, State and Local Education Agencies Risk 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 into Department 

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 systematic IT security problems as new computer threats emerge.

The OIG IT audit efforts will include assessing the Department’s compliance with FISMA 

information security provisions and related information security standards in accordance with 

OMB and Department of Homeland Security reporting guidelines. The OIG will also 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.

Non-Personnel Costs

The OIG request includes $18.259 million for non-personnel costs, an increase of $16,000 from 

the FY 2015 level. Of the total, $11.471 million is for departmental centralized services 

(overhead expenses), including the Department’s IT infrastructure and support contract 

(EDUCATE), and $6.788 million is for other non-personnel operational costs.

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Departmental Centralized Services

The OIG request of $11.471 million for overhead is an increase of $667,000 over the FY 2015

level and will cover a variety of costs. 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 EDUCATE, which covers IT equipment, 

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

and improvements. Rent and EDUCATE use approximately 86 percent of the centralized 

services resources.

Centralized Services

(dollars in thousands)

Item 2015 2016 Request Difference

Rent $5,631 $6,001 +$370

IT and telecommunications services 

and contracts (including 

interagency agreements) 3,659 3,888 +229

Other interagency agreements 898 917 +19

Other 616 665 +49

Non-Pay Centralized Services $10,804 $11,471 +$667

Other Non-Personnel Costs

Travel

The OIG is requesting $1.523 million in travel funds, $103,000 less than the FY 2015 level. The 

requested amount for FY 2016 covers travel expenses for the requested staff of auditors, 

investigators, and other specialists and is necessary to perform the OIG audit, investigative, and 

outreach mission. Most OIG work involves travel to SEAs, LEAs, schools, other grantees, 

guaranty agencies, and other recipients of Federal education funds, to 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. The OIG recognizes the importance of 

reducing or eliminating non-essential travel and using technologies such as video conferencing, 

WebEx, and SharePoint to accomplish training and conduct internal and external meetings. At 

the requested funding level and by using available conference technologies, the OIG will be 

able to conduct essential nationwide audits and investigations, as well as inspections and other 

related work.

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Advisory and Assistance Services

The OIG is requesting $665,000, an increase of $5,000 over the FY 2015 level to contract for 

audit services that support mandated OIG FISMA work. The requested funding level would 

provide contractor support to expand the coverage needed for IT security reviews of systems; 

audits of EDUCATE; reviews of systems development life cycles, enterprise architecture and IT 

project management; and computer forensic analysis.

Other Services

The OIG is requesting $1.678 million, an increase of $62,000 over the FY 2015 level, primarily 

to contract with an independent certified public accounting firm to audit the Department-wide 

financial statements. In addition to this amount, $725,000 is included in the FSA budget request 

for additional work under the financial statement contract. In accordance with various statutory 

requirements, the OIG will oversee the financial statement audits. The audits will result in 

reports on Department-wide financial statements, including FSA’s financial statement, the 

special purpose financial statement, and Federal intergovernmental balances. Audits will

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

internal controls and compliance with significant laws and regulations. Audit results will assess 

the fair presentation of the financial statements, make recommendations for improving financial 

accountability and stewardship, and identify areas requiring further review.

Training

Training for the OIG auditors, investigators, inspectors, and business operations staff is divided 

among three separate sections in the FY 2016 budget request — Other Non-Personnel Costs, 

Departmental Centralized Services, and Interagency Agreements. Under the other nonpersonnel section, the OIG is requesting $310,000 for OIG-specific staff training, a decrease of 

$36,000 from the FY 2015 level. Also, within the departmental centralized services section, the 

OIG requests $148,000 in support of Department training operations, which reflects an increase 

of $15,000 from the FY 2015 level. In addition, within the interagency agreements section, the 

OIG requests $147,000 to cover Federal Law Enforcement Training Center (FLETC) and

Inspector General Criminal Investigator Academy (IGCIA) costs for the OIG investigations staff, 

which is an increase of $23,000 from the FY 2015 estimate. The total training request for 

FY 2016 is $628,000, an increase of $2,000 from FY 2015.

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

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, 80 hours of governmental auditing training with at least 20 hours of CPE in each 

2-year period. The OIG 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 and Certified Information Systems Auditor; send the OIG investigators to 

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

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

To minimize 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 also continue to minimize training costs by having staff attend CIGIE-supported or IG 

community-sponsored training events.

Interagency Agreements

The OIG request includes $161,149 in FY 2016 to cover the OIG’s funding support for CIGIE. 

This contribution is .27% of the OIG FY 2016 designated funding level based on a total budget 

request of $59.3 million, including the CIGIE amount. Other interagency agreements covering a 

variety of services provided by other Federal agencies, such as FLETC/IGCIA training, 

mandated bi-annual physicals for investigators, and the use of firearms ranges, total $226,000, 

an increase of $34,000 from the FY 2015 level.

Equipment Operations/Maintenance

For FY 2016, the OIG requests $12,000, an increase of $1,000 from the FY 2015 level, for 

maintenance of copiers and heating, ventilation, and air conditioning units.

IT Services/Contracts

For FY 2016, the OIG is requesting $1.064 million for contracts for system support and 

expertise which includes $769,000 for senior programmer services and maintenance for various 

OIG systems and applications, $150,000 for software licenses, $34,000 for Oracle services and 

support for IT security operations, computer forensics, and data mining experts, $57,000 for 

OIG-specific items under EDUCATE, and $54,000 for IT hardware. None of these purchases 

are covered by centralized IT funding.

IT Equipment/Software 

The OIG is requesting $524,000, a decrease of $65,000 from the FY 2015 level, to support noncentralized IT software maintenance agreements, software license renewals, and equipment 

purchases. In addition, the Department’s Office of the Chief Information Officer is requiring 

$3.888 million from the OIG for centralized IT and telecommunications contract support, an 

increase of $229,000 from the FY 2015 level. The OIG’s combined central and non-central IT 

request for FY 2016 is $5.476 million.

Building Alterations

The OIG’s request includes $172,000, a decrease of $361,000 from the FY 2015 level, in 

non-centralized building alterations costs. 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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Other Items

There are also changes from the FY 2015 level in the following items:

• Communications - $22,000 for overnight shipping and $196,000 for other communications, 

an overall increase of $6,000

• Contracts for other services - $128,000, a decrease of $13,000

• Supplies - $125,000, a decrease of $6,000

• Other equipment - $33,000, a decrease of $3,000

PROGRAM PERFORMANCE INFORMATION

Specific results from audits, inspections, 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.

OIG performance measures:

In 2014, OIG developed its Five-Year Strategic Plan covering fiscal years 2014-2018. The Plan 

established the strategic goals and strategies shown below.

Strategic Plan Goals: (1) improve the Department’s ability to effectively and efficiently 

implement its programs to promote educational excellence and opportunity for all students, 

(2) strengthen the Department’s efforts to improve the delivery of student financial assistance,

(3) protect the integrity of the Department’s programs and operations by detecting and 

preventing vulnerabilities to fraud, waste, and abuse, (4) contribute to improvements in the 

Department’s business operations, and (5) strive for a diverse and skilled workforce that is 

provided with the means and assistance necessary to achieve OIG’s mission with excellence, 

accountability, and integrity.

Strategies Associated with OIG Strategic Plan Goals: (a) provide value-added audit, 

investigative, and other services; (b) allocate resources based on risk assessments; (c) use 

proactive analytical tools; (d) conduct effective outreach; (e) cultivate workforce excellence; 

(f) provide necessary resources; and (g) promote an inclusive workplace environment.

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

performance measures from the Budget Service Program Performance Report are shown 

below.

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Measure: Audits initiated each year that focus on areas of high risk or significant importance.

Year Target Percent Actual Percent

2012 85% 100%

2013 85 100

2014 85 100

2015 85

2016 85

Measure: Investigations initiated each year that focus on areas of high risk or significant 

importance.

Year Target Percent Actual Percent

2012 75% 85%

2013 80 93

2014 80 87

2015 80

2016 80

Measure: Recommendations accepted by the Department during the fiscal year.

Year Target Percent Actual Percent

2012 90% 92%

2013 90 95

2014 90 96

2015 90

2016 90

Measure: Draft and final audit reports issued by the agreed-upon date.

Year Target Percent Actual Percent

2012 70% 90%

2013 70 95

2014 70 97

2015 70

2016 70

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Measure: Complaints of fraud, waste, and abuse evaluated and closed with a final disposition 

within 90 days.

Year Target Percent Actual Percent

2012 70% 82%

2013 70 79

2014 70 78

2015 70

2016 70

Additional information: This metric changes from 90 to 120 days starting in FY 2015.

Measure: Closed investigations that resulted in a criminal, civil or administrative action, or 

monetary result.

Year Target Percent Actual Percent

2012 68% 84%

2013 74 87

2014 74 79

2015 74

2016 74

Measure: Agreed-upon milestones for inspections and information technology audits are met.

Year Target Percent Actual Percent

2013 75% 75%

2014 75 100

2015 75

2016 75

Additional information: This measure was new in 2013.

Measure: Comments that resulted in changes in legislation, regulations, or other policies.

Year Target Percent Actual Percent

2012 60% 90%

2013 70 97

2014 70 83

2015 70

2016 70

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Measure: Freedom of Information Act responses meeting required deadlines.

Year Target Actual

2012 97% 99%

2013 95 94

2014 95 87

2015 95

2016 95

Measure: Hotline controlled correspondence processed within the established deadlines.

Year Target Percent Actual Percent

2013 95% 100%

2014 95 100

2015 95 100

2016 95

Additional information: This measure was new in 2013.

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