Department of Education

OFFICE OF INSPECTOR GENERAL

Fiscal Year 2015 Budget Request

CONTENTS

Page

_Toc350155958

Appropriations Language................................................................................................... CC-1

Amounts Available for Obligation....................................................................................... CC-2

Obligations by Object Classification................................................................................... CC-3

Summary of Changes........................................................................................................ CC-4

Authorizing Legislation....................................................................................................... CC-6

Appropriations History ....................................................................................................... CC-7

Activity:.............................................................................................................................. CC-8

Inspector General.......................................................................................................... CC-8
OFFICE OF INSPECTOR GENERAL

CC-1

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] $59,181,000. (Department 

of Education Appropriations Act, 2014)
OFFICE OF INSPECTOR GENERAL

CC-2

Amounts Available for Obligation

(dollars in thousands)

Appropriation and Adjustments 2013 2014 2015

Discretionary appropriation:

Discretionar y Appropriation $59,820 $57,791 $59,181

Across-the-board rescission (P.L. 113-6) -120 0 0

Subtotal, appropriation 59,700 57,791 59,181

Sequester (P.L. 112-25) -3,009 0 0

Transfer from Student Aid Administration

(P.L. 112-74 and P.L. 113-6) 1,100 0 0

Subtotal, adjusted discretionary appropriation 57,791 57,791 59,181

Unobligated balance expiring -141 0 0

Subtotal, direct obligations 57,650 57,791 59,181

Total, direct obligations 57,650 57,791 59,181
OFFICE OF INSPECTOR GENERAL

CC-3

Obligations by Object Classification

(dollars in thousands)

Object Class 2013 2014 2015

11.10 Full-time permanent 27,439 27,541 27,515

11.31 Full-time temporary 360 1,620 1,632

11.32 Part-time 210 116 117

11.51 Overtime 2,035 0 0

11.52 Awards 296 316 316

Compensation subtotal 30,340 29,593 29,580

12.00 Benefits 10,552 10,460 10,958

13.00 Benefits for former personnel 0 175 0

Comp/benefits subtotal 40,892 40,228 40,538

21.00 Travel 876 1,809 1,686

22.00 Transportation of things 0 75 75

23.10 Rental payments to GSA 5,327 5,395 5,648

23.31 Communications 191 163 169

23.32 Postage/fees 1 39 36

Subtotal 23 5,519 5,597 5,853

24.00 Printing and reproduction 1 1 1

25.10 Advisory and assistance services 630 627 645

25.21 Other services 2,071 1,977 2,066

25.22 Training/tuition contracts 171 450 438

25.23 Field readers 0 0 0

25.30 Goods/services from Federal sources 1,220 1,648 2,034

25.40 Operations/maint of facilities 0 0 0

25.70 Operations/maint of equipment 29 3 3

25.72 IT services/contracts 5,520 4,325 4,372

Subtotal 25 9,641 9,030 9,558

26.00 Supplies 148 136 130

31.10 IT equipment/software 353 380 568

 

31.30 Other equipment 194 28 29

Subtotal 31 547 408 597

32.00 Building alterations 26 507 743

43.10 Prompt payment interest 0 0 0

Total, Obligations 57,650 57,791 59,181
OFFICE OF INSPECTOR GENERAL

CC-4

Summary of Changes

(dollars in thousands)

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

2015 ............................................................................................ 59,181

Net change ........................................................... +1,390

Increases: 2014 base

Change 

from base

Built-in:

Increase in salaries due to the proposed 1 percent pay raise. $29,277 +$220

Increase in benefits for OIG’s share of health, retirement, and 

other benefits, as well as increased FERS contribution rates 

starting October 2014.

10,460 +583

Increase in GSA rental payments due to anticipated rate 

increases and tax escalations.

5,395 +253

Program:

Increase in goods and services from Federal sources for OIG’s 

share of expenses for the Council of inspectors General on 

Integrity and Efficiency (CIGIE) 136 +287

Increase in building alterations. 507 +236

Increase in IT acquisition 357 +186

Net increase in central IT 3,867 +100

Increase in cost for audit of the Department’s financial 

statements.

920 +48

Increase in goods and services from Federal sources for 

miscellaneous agreements 146 +46

Net increase in central support services 1,688 +43

Increase in advisory and assistance services for FISMA audits. 627 +18

Net changes in other areas. 1,668 +12

Subtotal, increases +2,032
OFFICE OF INSPECTOR GENERAL

CC-5

Summary of Changes

(dollars in thousands)

Decreases: 2014 base

Change 

from base

Program:

Decrease in personnel compensation and benefits resulting 

from a reduction of 2 FTE due to attrition

$39,737 -$318

Decrease benefits for former personnel due to completion of 

buyouts.

175 -175

Decrease in travel $1,809 -123

Decrease 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. 759 -26

Subtotal, decreases -642

Net change +1,390
OFFICE OF INSPECTOR GENERAL

CC-6

Authorizing Legislation

(dollars in thousands)

Activity

2014

Authorized

2014

Estimate

2015

Authorized

2015

Request

Inspector General (DEOA, Section 212) Indefinite $57,791 Indefinite $59,181

Total definite authorization 0 0

Total appropriation 57,791 59,181
OFFICE OF INSPECTOR GENERAL

CC-7

Appropriations History

(dollars in thousands)

Year

Budget 

Estimate

to Congress

House 

Allowance

Senate 

Allowance Appropriation

2006 $49,408 $49,000 $49,408 $48,510

2007 53,145 N/A1N/A148,802

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

8

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

2014 62,347 N/A859,700357,791

2015 59,181

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.
OFFICE OF INSPECTOR GENERAL

CC-8

Activity

Inspector General

(DEOA, section 212)

(dollars in thousands)

FY 2015 Authorization: Indefinite

Budget Authority:

Annual Fund

2014 2015

Change 

from 2014

Personnel costs $40,228 $40,538 +$310

Non-Personnel costs 17,563 18,643 +1,080

Total 57,791 59,181 +1,390

FTE 253 251 -2

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.
OFFICE OF INSPECTOR GENERAL

CC-9

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2010 .................................................................. $60,053

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

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

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

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

FY 2015 BUDGET REQUEST

The OIG requests $59.181 million and 251 full time equivalents (FTE) for FY 2015, an increase 

of $1.390 million over the FY 2014 appropriation. A 10-year history of the OIG’s staffing is 

shown in the following chart:

Almost 69 percent of the requested amount, or $40.538 million, is for personnel compensation 

and benefits to support the requested staffing level of 251 FTE. The remaining $18.643 million 

is for non-personnel costs, of which $11.346 million, or 19 percent of the total OIG request, is for 

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

and information technology services contracts. The remainder of the non-personnel request, 

$7.297 million, or 12 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 $423,000 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

2006200720082009201020112012201320142015

FTE

Year

OIG Full-Time Equivalent Employment (FTE)

OIG ARRA FTE

OIG Regular FTE
OFFICE OF INSPECTOR GENERAL

CC-10

The scope of OIG planned work in FY 2015 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 accuracy and reliability of consumer information 

provided to students and borrowers, 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 plans to continue to evaluate the cost of attendance as prescribed in the Higher 

Education Act of 1965 (HEA) to determine if changes to the statute are needed.

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, lenders, 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 grant programs with overlapping goals and activities. 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, and purchase and travel 

card programs.

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 22 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 

A-133 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.
OFFICE OF INSPECTOR GENERAL

CC-11

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. Then, in FY 2013, 

sequestration resulted in a budget reduction of 5 percent. In recognition of the budget 

constraints faced by the Federal Government, the OIG identified ways to reduce expenses 

without sacrificing quality, including reducing support costs such as supplies, subscriptions, and 

reimbursement programs, cancelling contractor support for both our FISMA audit and for 

development of analytical tools and risk models, and significantly reducing travel and training. 

Because employee pay and benefits is our largest expense at approximately 70 percent of our 

overall budget in FY 2013, reductions in staffing through attrition and through the termination of 

some temporary employees also have been necessary.

The FY 2015 request funds a staffing level of 251, a reduction of two FTE from FY 2014 level, 

and a reduction of 19 FTE from the FY 2013 level. The requested funding would provide the 

reduced staff with the tools needed to perform their work. It provides funding for FISMA 

contractor support. Without contractor support, the OIG would have to downsize the scope and 

coverage of the Department’s information technology (IT) security functions and limit the type of 

technical testing conducted on the Department’s and FSA’s data systems and infrastructure. At 

the FY 2015 request level, the OIG would obtain contractor support for the development of data 

mining that assist 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 reducing 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 2012, 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.
OFFICE OF INSPECTOR GENERAL

CC-12

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

certifies that the amount of $558,350 requested for required training of our staff, including the 

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

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

Criminal Investigator Academy (IGCIA), would satisfy all the OIG’s FY 2015 training 

requirements.

________________________

Kathleen Tighe

Inspector General

Overhead

$11.3 

Other Non-Personnel

$7.3 

Personnel

$40.6 

FY 2015 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.
OFFICE OF INSPECTOR GENERAL

CC-13

In FY 2015, the OIG will continue to operate from 19 regional and field offices, as well as 

headquarters in Washington, DC. 163 FTE, or 65 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 88 FTE will be located in the Washington, DC headquarters office.

FY 2015 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.

• 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.

Boston

New York City

Philadelphia

Washington, D.C.

Regional Offices

Field Offices

Location of OIG Headquarters,

Regional, and Field Offices

Denver Kansas

City

Chicago

Atlanta

Dallas

Sacramento

Long Beach

Puerto Rico Pembroke 

Pines

Pittsburgh

St. Paul

Austin

Phoenix

Nashville

Ann Arbor
OFFICE OF INSPECTOR GENERAL

CC-14

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

assistance necessary to achieve the 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 2015 budget request of $40.538 million for personnel compensation and benefits is an 

increase of $310,000 from the FY 2014 estimate. The request covers a proposed 2015 

one percent government-wide pay raise, as well as increased benefits costs, including 

increased FERS contribution rates starting October 2014. The requested level provides funding 

for a staffing level of 251 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 251 FTE in FY 2015 is a decrease of two FTE from the estimated 

FY 2014 level of 253. The 251 FTE for FY 2015 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 $69 billion in discretionary grants and a loan portfolio of approximately $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 achieve reduced staffing levels, the OIG has limited hiring to that necessary to fill only 

essential positions and may request authority to offer voluntary early retirement and voluntary 

separation incentive payments.

Audit Priorities

In FY 2015, 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

o 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. Areas of potential audit coverage are provided below:

 Loan delinquencies and defaults — Rising tuitions and fees will result in 

increased borrowing and increased defaults. The OIG will continue to 
OFFICE OF INSPECTOR GENERAL

CC-15

examine increased defaults, questionable debt collection practices, wage 

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

 Consumer information — Without adequate and accurate consumer 

information, students cannot make informed decisions when selecting 

schools, taking out loans, and accepting debit cards. Areas of audit coverage 

may include information such as graduation rates and crime statistics 

reported by schools, disclosure and notification requirements for schools, 

loan servicers, debit cards, and financial literacy programs.

o Cost of Attendance — Cost of attendance is the driving force behind the amount 

of Title IV financial aid that a student is eligible to receive and impacts the amount 

of loan debt a student can accumulate. The cost of attendance is prescribed in 

the HEA and prohibits the Department from issuing regulations. The OIG will 

continue to evaluate the dynamics of the cost of attendance, with a goal of 

determining whether changes to the statute are needed.

o 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.

o New programs and requirements — Over the past 6 years, the 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.

o 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 2015, 

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.

o School Compliance Issues:

 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.

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

traditional semester, trimester, and quarter programs, institutions use 
OFFICE OF INSPECTOR GENERAL

CC-16

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.

 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.

State and Local Programs

o Individuals with Disabilities Education Act (IDEA) — The OIG will address a 

variety of issues related to IDEA funding in traditional and online charter schools.

o Elementary and Secondary Education Act (ESEA) — The OIG will audit key areas

such as Department-issued ESEA waivers, charter schools, and teacher quality 

initiatives.

o 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.

o Overlapping Programs — To improve the efficiency and effectiveness of Education 

programs, the OIG will examine grants that have overlapping goals and activities. 

Planned work includes examination of selected TRIO programs.

o 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

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

grants through its program offices. Effective monitoring and oversight are essential for 
OFFICE OF INSPECTOR GENERAL

CC-17

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.

o 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.

o 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 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 due to the OIG outreach undertaken as part of the OIG Recovery Act 

work. 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 Recovery Act, even though Recovery Act funds are 

no longer available. The Department of Education’s OIG has received almost four times more 

Recovery Act whistleblower reprisal complaints than any other OIG. Additionally, beginning in 

July 2013, the OIG is now also 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 
OFFICE OF INSPECTOR GENERAL

CC-18

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 2015, 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 February 2014, the OIG had 106 ongoing investigations of postsecondary 

institutions, representing about 27 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 63 charter school investigations resulting in 

37 indictments, 31 convictions, and over $10.7 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 

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

agencies have resulted in 154 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 22 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 Cyber Crime 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 data mining. The OIG data mining 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 mining 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 Title IV 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 
OFFICE OF INSPECTOR GENERAL

CC-19

investigate network intrusions, criminal misuse of Department systems and electronic data, and 

look for systemic IT problems as new computer threats occur.

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 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.

In addition, the OIG will continue to play a primary role in the Department’s computer incident 

response capability by responding to and investigating destructive network intrusion incidents, 

securing and preserving electronic evidence, performing forensic analysis on attacked systems, 

and determining the extent of damage to the Department’s systems, users’ identity, or data.

Non-Personnel Costs

The OIG request includes $18.643 million for non-personnel costs, an increase of $1.080 million

from the FY 2014 level. Of the total, $11.346 million is for departmental centralized services 

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

(EDUCATE), and $7.297 million is for other non-personnel operational costs

Departmental Centralized Services

The OIG request of $11.346 million for overhead is an increase of $374,000 over the FY 2014 

estimate, 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, and 

background security investigations; communications; and IT services and contracts. The 

communications and IT amounts will be used primarily for EDUCATE, which covers 

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

and improvements. Rent and EDUCATE use approximately 74 percent of the centralized 

services resources.
OFFICE OF INSPECTOR GENERAL

CC-20

Centralized Services

(dollars in thousands)

Item 2014 2015 Difference

Rent $5,395 $5,648 +$253

IT and telecommunications services 

and contracts (including 

interagency agreements) 3,867 3,967 +100

Other interagency agreements 1,065 1,091 +26

Other 645 640 -5

Non-Pay Centralized Services $10,972 $11,346 +$374

Other Non-Personnel Costs

Travel

The OIG is requesting $1.686 million in travel funds, $123,000 less than FY 2014. The 

small decrease in 2015 travel offsets an increase in funding provided to CIGIE. In 

FY 2013, the OIG eliminated training-related travel, restricted managers’ travel to 

regional offices, and delayed audit projects involving large amounts of travel in order to 

manage within a severely limited budget. Much of the travel funding was restored in 

2014. The requested amount for FY 2015 covers travel expenses for the requested 

staff of auditors, investigators, and other specialists, as well as anticipated increases in 

the overall costs of traveling, such as increases for fuel surcharges and airline fees. 

Travel 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, the OIG will be able to 

conduct essential nationwide audits and investigations, inspections, and other related 

work.

Advisory and Assistance Services

The OIG is requesting $645,200 to contract for audit services that support mandated 

the 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.
OFFICE OF INSPECTOR GENERAL

CC-21

Other Services

The OIG is requesting $968,000, an increase of $48,000 over FY 2014, 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 Student Aid 

Administration 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 Federal Student Aid’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 2015 budget request — Other 

Non-Personnel Costs, Departmental Centralized Services, and Interagency 

Agreements. Under the other non-personnel section, the OIG is requesting $318,000

for OIG-specific staff training, a decrease of $7,000 from FY 2014. Also, within the 

departmental centralized services section, the OIG requests $120,000 in support of 

Department training operations, which reflects a decrease of $5,000 from FY 2014. In 

addition, within the interagency agreements section, the OIG requests $120,350 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 $30,400 from the FY 2014 level. The total training request for FY 2015 

is $558,350, an increase of $8,000 from FY 2014.

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 FLETC/IGCIA; and obtain advanced IT skills to 

combat new computer threats and weaknesses.
OFFICE OF INSPECTOR GENERAL

CC-22

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 as much of OIG continuing education requirements as 

is possible, as well as using qualified OIG staff to deliver required training. 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 $423,000 in FY 2015 to cover the OIG’s funding support for 

CIGIE. 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 $192,300, an increase of $46,300 

from the FY 2014 level.

Equipment Operations/Maintenance

For FY 2015, the OIG requests $3,000, the same as in FY 2014, for copier 

maintenance.

IT Services/Contracts 

For FY 2015, the OIG is requesting $733,000 for contracts for system support and 

expertise, of which $231,000 is for a senior programmer, $168,000 for software 

licenses, $226,000 for servers and software programmer maintenance support for the 

OIG investigations case management system, $14,000 for OIG-specific items under 

EDUCATE, $76,000 for miscellaneous IT services such as recertification of the OIG 

specific IT systems, and $18,000 for an Oracle services contract to support IT security 

operations, computer forensics, and data mining experts. None of these purchases are 

covered by centralized IT funding.

IT Equipment/Software 

The OIG is requesting $543,000, an increase of $186,000 from FY 2014, to support 

non-centralized IT software maintenance agreements, software license renewals, and 

equipment purchases. In addition, the Department’s Office of the Chief Information 

Officer is requiring $3.967 million from the OIG for centralized IT and 

telecommunications contracts, an increase of $100,000 from the FY 2014 level. The 

OIG’s combined central and non-central IT request for FY 2015 is $5.243 million.

Building Alterations

The OIG’s request includes $743,000, an increase of $236,000 over FY 2014, in noncentralized building alterations costs. This amount will provide funding for pending 

lease renewals and possible office moves for headquarters in Washington, DC and for 

the Chicago regional office, as well as for miscellaneous facilities projects, such as 

maintenance of air conditioning units, space reconfigurations, furniture repair and/or 

replacement, and other costs associated with maintaining the work environment.
OFFICE OF INSPECTOR GENERAL

CC-23

Other Items

There are also changes from the FY 2014 estimate in the following items:

• Communications - $169,000, an increase of $6,000

• Postage - $22,000 for overnight shipping and $1,000 for other postage, which were

formerly included as part of departmental centralized non-pay costs. The total amount 

is the same as in 2014, but is no longer a centralized cost.

• Contracts for other services - $112,000, an increase of $16,000

• Supplies - $127,000, an decrease of $5,000

• Other equipment - $29,000, an increase of $1,000

PROGRAM PERFORMANCE INFORMATION

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

OIG Semiannual Report to Congress. All OIG reports, including full audit, inspection, and 

investigation reports, are available on OIG’s website,

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

OIG performance measures:

In 2011, OIG established the strategic goals and objectives shown below. Performance 

measures are reviewed annually and revised as necessary. The performance measurement 

data shown below are from the 2012 Budget Service Program Performance Report, and data 

quality validation is performed internally.

Objective 1 of 2: (a) Conduct audits, inspections/evaluations, investigations, and other reviews 

and provide services in order to evaluate program results; examine allegations of waste, fraud, 

and abuse; review internal controls; provide technical assistance; identify systemic weaknesses; 

highlight best practices; and make recommendations for improvement in programs and 

operations; (b) continuously assess risk in order to concentrate OIG resources and efforts on 

issues that have the greatest impact and usefulness to the stakeholders with emphasis on 

maximizing the recovery of public resources and deterring future wrongdoing; (c) develop 

analytical tools to proactively identify vulnerabilities, propose protective actions, and measure 

the effectiveness of such actions; (d) provide outreach to increase awareness of the role of the 

OIG and educate both Department employees and external customers on how to recognize 

fraud, waste, and abuse, and the mechanisms available for reporting concerns; and 

(e) communicate the results of our work to stakeholders by providing timely, relevant, and high 

impact OIG products that result in improvements in program performance and enforcement.
OFFICE OF INSPECTOR GENERAL

CC-24

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

2015 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

2015 80

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

Year Target Percent Actual Percent

2011 85% 93%

2012 90 92

2013 90 95

2014 90

2015 90

Measure: Audit initial results determined by the agreed-upon date.

Year Target Percent Actual Percent

2012 70% 100%

2013 80 100

2014 80

2015 80

Measure: Audit field work completed and draft report submitted for review by the agreed-upon 

date.

Year Target Percent Actual Percent

2012 70% 100%

2013 70 94

2014 75 0

2015 75
OFFICE OF INSPECTOR GENERAL

CC-25

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

2015

Measure: Case closing Reports of Investigations submitted within 150 days of last reportable 

investigative action (90 days for 2011).

Year Target Percent Actual Percent

2011 75% 54%

2012 70 70

2013 70 71

2014 70

2015 70

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

within 90 days.

Year Target Percent Actual Percent

2011 70% 78%

2012 70 82

2013 70 79

2014 70

2015 70

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

monetary result.

Year Target Percent Actual Percent

2011 65% 71%

2012 68 84

2013 74 87

2014 74

2015 74
OFFICE OF INSPECTOR GENERAL

CC-26

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

Year Target Percent Actual Percent

2013 75% 75%

2014 75

2015 75

Additional information: This measure was new in 2013.

Measure: Development milestones are met by agreed-upon dates for proactive analytical 

projects developed to identify adverse trends and/or possible fraud, waste, and abuse if 

Department programs and operations.

Year Target Percent Actual Percent

2012 70% 97%

2013 85 93

2014 85

2015 85

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

Year Target Percent Actual Percent

2011 60% 72%

2012 60 90

2013 70 97

2014 70

2015 70

Objective 2 of 2: Hire, develop, and retain a highly qualified, diverse workforce with the skills

to meet current and emerging mission requirements; Provide employees with the physical work 

space, technology, equipment, and other resources necessary to support accomplishment of 

the goals of the OIG; Foster an environment of open communication, respect for ideals, and 

understanding of the value of each individual's contribution to promote employee satisfaction 

and motivation; and Support the integrity of OIG operations by maintaining an effective quality 

assurance and internal review program.
OFFICE OF INSPECTOR GENERAL

CC-27

Measure: Counsel work products meeting required or agreed-upon deadlines.

Year Target Percent Actual Percent

2011 80% 91%

2012 80 97

2013 85 95

2014 85

2015 85

Measure: Freedom of Information Act responses meeting required deadlines.

Year Target Actual

2011 97% 98%

2012 97 99

2013 95 94

2014 95

2015 95

Measure: Requests for forensic or analytical assistance completed within 75 days.

Year Target Actual

2011 65% 87%

2012 65 86

2013 70 86

2014 70

2015 70

Measure: Computer-assisted assessment technology products delivered to the requestor 

within agreed-upon dates.

Year Target Actual

2011 90% 98%

2012 90 100

2013 90 100

2014 90

2015 90
OFFICE OF INSPECTOR GENERAL

CC-28

Measure: Products related to budget and other administrative operations developed, executed, 

and delivered to OMB, Department, OIG leadership, and other applicable stakeholders within 

agreed-upon timeframes.

Year Target Actual

2011 80% 100%

2012 80 87

2013 80 100

2014 80

2015 80

Measure: Report to appropriate stakeholders on Recovery Act activities within established 

timeframes.

Year Target Percent Actual Percent

2011 90% 100%

2012 90 92

2013 90 100

2014 90

2015 90

Measure: Quality assurance review and internal control review recommendations are accepted 

by the OIG.

Year Target Percent Actual Percent

2012 70% 91%

2013 80 99

2014 90

2015 90

Measure: OIG Data Analytics Systems are operational during normal work hours.

Year Target Percent Actual Percent

2011 95% 92%

2012 90 100

2013 95 100

2014 95

2015 95
OFFICE OF INSPECTOR GENERAL

CC-29

Measure: Hotline controlled correspondence processed within the established deadlines

Year Target Percent Actual Percent

2013 95% 100%

2014 95

2015 95

Additional information: This measure was new in 2013.

Measure: Operational staff completed at least one work-related training.

Year Target Percent Actual Percent

2011 70% 100%

2012 70 90

2013 70 92

2014 70

2015 70