Department of Education

OFFICE OF INSPECTOR GENERAL

Fiscal Year 2020 Budget Request

CONTENTS

Page

Appropriations Language ......................................................................................................AA-1

Amounts Available for Obligation ..........................................................................................AA-2

Obligations by Object Classification ......................................................................................AA-3

Summary of Changes ...........................................................................................................AA-4

Authorizing Legislation..........................................................................................................AA-5

Appropriations History...........................................................................................................AA-6

Activity:

Office of Inspector General...............................................................................................AA-7
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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, [$61,143,000] $63,418,000, of which $2,000,000 

is available until expended. (Department of Education Appropriations Act, 2019)
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Amounts Available for Obligation

(dollars in thousands)

Appropriation and Adjustments 2018 2019 2020

Discretionary appropriation:

 Appropriation........................................................................ $61,143 $61,143 $63,418

 Transfer from Department of Education, Bipartisan Budget 

Act of 2018, for Inspector General.................................... 4,000 0 0 

Subtotal, discretionary appropriation .......................... 65,143 61,143 63,418

 Bipartisan Budget Act of 2018 unobligated balance, start 

of year.............................................................................. 0 4,000 2,917

 Unobligated balance, expiring .............................................. -491 0 0

 Bipartisan Budget Act of 2018 unobligated balance, end 

of year.............................................................................. -4,000 -2,917 -1,714

Total, direct obligations............................................... 60,652 62,226 64,621
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Obligations by Object Classification

(dollars in thousands)

Object Class

2018

Actual

2019

Appropriation

2020

Request

Change from 

2019 to 2020

11.10 Full-time permanent $25,838 $29,294 $30,268 $974

11.31 Full-time temporary 247 123 123 0

11.32 Part-time 142 123 123 0

11.51 Overtime 1,996 0 0 0

11.52 Awards 476 501 501 0

Compensation subtotal 28,699 30,041 31,015 974

12.00 Benefits 10,799 11,266 11,622 356

13.00 Benefits for former personnel 0 0 0 0

Comp/benefits subtotal 39,498 41,307 42,637 1,330

21.00 Travel 1,165 1,372 1,396 24

22.00 Transportation of things 0 0 0 0

23.10 Rental payments to GSA 6,288 6,671 6,916 245

23.31 Communications 167 185 191 6

23.32 Postage/fees 1 2 4 2

Subtotal 23 6,456 6,858 7,111 253

24.00 Printing and reproduction 7 1 1 0

25.10 Advisory and assistance services 743 306 327 21

25.21 Other services 2,213 2,311 2,394 83

25.22 Training/tuition contracts 304 416 537 121

25.30

Goods/services from Federal 

sources 1,411 1,307 1,513 206

25.40 Operations/maint of facilities 0 0 0 0

25.70 Operations/maint of equip. 3 6 5 -1

25.72 IT services/contracts 7,136 6,354 6,374 20 

Subtotal 25 11,810 10,700 11,150 450

26.00 Supplies 112 98 95 -3

31.10 IT equipment/software 908 746 855 109

31.30 Other equipment 52 23 75 52

Subtotal 31 960 769 930 161

32.00 Building alterations 644 38 98 60

 Subtotal, Obligations 60,652 61,143 63,418 2,275

Subtotal, Bipartisan Obligations 0 1,083 1,203

Total, Obligations 60,652 62,226 64,621
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Summary of Changes

(dollars in thousands)

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

2020................................................................................................. 63,418

Net change ................................................................ +2,275

Increases:

2019

Appropriation

Change from

Appropriation

Built in:

Increase of 7 additional FTE and increase salaries and 

benefits due to one additional paid day, and increased

benefits for FERS contributions rate. $41,307 +$1,330

Increase in rental payments to GSA. 6,671 +245

Program:

Travel $1,372 +$24

Training 298 +68

Increase in OIG’s cost for IT Equipment/Software 746 +109

Increase in OIG’s share of the Department’s Central Support 

non-personnel costs. 1,590 +264

Increase in building alterations 38 +60

Net change in other areas. 9,423 +175

Subtotal, increases +2,275

Net changes +2,275
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Authorizing Legislation

(dollars in thousands)

Activity 2019

Authorized

2019 

Appropriation

2020

Authorized

2020

Request

Inspector General (DEOA, Section 212).........................................Indefinite 61,143 Indefinite $63,418

Total appropriation .................................................................... 61,143 63,418
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Appropriations History

(dollars in thousands)

Year

Budget Estimate 

to Congress

House 

Allowance

Senate 

Allowance AppropriationFootnote

2011 65,238 60,053165,238159,9331

2012 67,187 59,933259,933259,820

2013 62,401 59,820359,820356,691

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

2014 62,347 N/A459,700457,791

2015 59,181 N/A558,791557,791

2016 59,256 59,256657,791659,256

2017 61,941 59,256759,256759,2567

2018 61,143 59,256861,143861,1438

2019 63,418 61,143961,143961,1439

2020 63,418

 

1

The level for the House allowance reflects the House-passed full-year continuing resolution; Senate 

allowance reflects Committee action only; the Appropriation reflects the Department of Defense and FullYear Continuing Appropriations Act, 2011 (P.L. 112-10).

2

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

reflects Senate Committee action only.

3

The levels for the House and Senate allowances reflect action on the regular annual 2013 

appropriations bill, which proceeded in the 112th Congress only through the House Subcommittee and 

the Senate Committee.

4

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

reflects Committee action only.

5

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

reflects Senate Subcommittee action only.

6

The levels for House and Senate allowances reflect action on the regular annual 2016 appropriations 

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

7

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

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

8

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

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

reflects the Consolidated Appropriations Act, 2018 (P.L. 115-141).

9

The levels for the House and Senate Allowance reflect Committee action on the regular annual 2019

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

and Human Services, and Education Appropriations Act, 2019 (P.L. 115-245).
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Office of Inspector General

(Department of Education Organization Act, Section 212)

(dollars in thousands)

FY 2020 Authorization: Indefinite

Budget Authority:

2019

Appropriation

2020

Request Change

Personnel Compensation and

Benefits Costs $41,307 $42,637 +$1,330

Non-Personnel Costs 19,836 20,781 +945

Total 61,143 63,418 +2,275

FTE 241* 248* 7

*Excludes 6 FTE associated with Bipartisan Budget Act of 2018.

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 the OIG is to 

monitor the Department's performance and report to the Congress and to the Secretary on 

opportunities for improvement and any problems or deficiencies.

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

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

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

inquiries.

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

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

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

investigates allegations of fraud by recipients of program funds and of employee misconduct 

involving the Department’s programs and operations.

In addition, the OIG operates a hotline website in five languages (https://oighotline.ed.gov) and 

monitors a hotline phone number (1-800-MISUSED) where anyone may report fraud, waste, or 

abuse involving Department of Education funds or programs. Each month the hotline has 

approximately 200 telephone contacts and approximately 300 complaints. Since the middle of 

fiscal year 2016, the OIG hotline has had to evaluate over 100 additional complaints per month 
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that were received as suspicious activity reports through Federal Student Aid’s (FSA) Feedback 

system.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

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

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

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

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

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

FY 2020 BUDGET REQUEST

For fiscal year 2020, the Budget Request includes $63.4 million and 248 full-time equivalents 

(FTE) employment for the Office of Inspector General, an increase of $2.3 million over the fiscal 

year 2019 appropriation of $61.1 million. With the additional funding, the requested FTE level 

for fiscal year 2020 is 248. A 10-year history of the OIG’s staffing is shown in the following chart:

Sixty-seven percent of the requested amount, or $42.6 million, is for Personnel Compensation 

and Benefits (PC&B) to support the requested staffing level of 248 FTE. The remaining 

$20.8 million is for Non-Personnel costs, of which $14.5 million, or 22 percent of the total OIG 

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

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

Non-Personnel request, $6.3 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. 

The $6.3 million also includes a payment of $139,077 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)(3)(A); 

5 U.S.C. app 3 § 5(g).

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

2011201220132014201520162017201820192020

FTE

Year

OIG Full-Time Equivalent Employment (FTE)

OIG ARRA FTE

OIG Regular FTE
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The scope of the OIG planned work in fiscal year 2020 will cover multiple diverse and evolving 

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

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

example, audits of Federal student assistance programs, which involve over $1.4 trillion of 

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

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

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

related to the disaster recovery assistance programs, statewide accountability systems under 

the Every Student Succeeds Act (ESSA), the Department’s control over Student and Academic 

Enrichment program grants, and school choice. The OIG further plans to evaluate the 

Department of Education’s business operations in areas such as human resources, the 

implementation of the Federal Information Technology Acquisition Reform Act (FITARA), and 

Office for Civil Rights’ complaint dismissal process. 

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

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

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

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

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

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

non-Federal auditors, including single audits and proprietary school compliance and financial 

statement audits of the recipients of Department funds. Further, the OIG will continue to work 

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

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

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

single audits, including providing training to non-Federal auditors.

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

the number of fraud and corruption cases involving charter schools and local school districts. A

large number of these complex and resource-intensive investigations involve subjects who are 

geographically dispersed, which results in greater travel costs for OIG investigators. The OIG 

also will continue to work a significant number of cases involving fraud rings in postsecondary 

distance education programs, even though the OIG issued a report recommending that the 

Department implement program improvements to reduce this fraud. The distance education 

fraud ring investigations represent, on average, 28 percent of the cases conducted by the OIG

since fiscal year 2012.

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

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

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

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

more than two dollars for each dollar it spent.
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In accordance with the Inspector General Act, 5 U.S.C. app 3 § 6, the Inspector General has 

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

designated for the statutorily required training provided by the Federal Law Enforcement 

Training Center (FLETC), the Inspector General Criminal Investigator Academy (IGCIA), and in 

the Department’s centralized services, would satisfy all the OIG’s fiscal year 2020 training 

requirements.

In fiscal year 2020, the OIG will continue to operate from various locations throughout the 

country. Approximately 62 percent of the OIG’s staff will be assigned to 16 regional and field 

office locations in New York, Boston, San Juan (Puerto Rico), Philadelphia, Atlanta, Chicago, 

Ann Arbor, Nashville, Dallas, Denver, Kansas City, Sacramento, Long Beach, Pittsburgh, 

Phoenix, and Pembroke Pines. The remaining 38 percent will be located in the Washington, 

D.C., headquarters office.

FY 2020 Priorities and Goals

The OIG’s strategic goals are the following:

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

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

 Goal 2: Cultivate a diverse, highly skilled, and inspired workforce with sufficient resources to 

carry out the OIG’s mission.

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

stewardship of resources, and accountability.

Overhead includes: Rent, telecommunications, interagency agreements 

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

assistance services, training, and CIGIE support.

Overhead

22%, $14.5

Other Non-Personnel

11%, $6.3

Personnel 

Compensation & 

Benefits

67%, $42.6

FY 2020 Distribution of Costs

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

risk management, and other activities. These activities 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.

Bipartisan Budget Act of 2018

In fiscal year 2018, the OIG received $4 million in no-year funds to conduct audits and 

investigations through the Bipartisan Budget Act of 2018, which provided disaster relief funding. 

The Department is authorized $2.7 billion of funding by the Bipartisan Budget Act of 2018 to be 

used to help K-12 school districts and schools as well as institutions of higher education (IHEs) 

in their recovery efforts. 

Based on the current plans to oversee this work, the OIG is projected to obligate more than 50 

percent of the funds through fiscal year 2020. All comparisons in the narrative below exclude 

the Bipartisan Budget Act of 2018 funding.

No-Year Funding

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

delays in hiring, multiyear funds provide additional flexibility to allow the OIG to restore its FTE 

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

by the Department, multiyear funds allow for flexibility when funds are returned to the OIG at the

end of the fiscal year, or if costs come in higher than expected.

Personnel Compensation and Benefits (PC&B) Costs

The fiscal year 2020 Budget Request of $42.6 million for Personnel Compensation and Benefits 

is an increase of $1.3 million over the fiscal year 2019 appropriation. The PC&B increase covers 

an additional seven FTE, increased PC&B costs associated with an additional paid day, and 

increased FERS contributions in fiscal year 2020.

The fiscal year 2020 request includes 248 FTE to support audit and investigation activities, as 

well as IT audits and computer crime investigations (cybersecurity) for all Department programs. 

This staff level is responsible for providing oversight of the Department, which administers more 

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

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

numerous other grantees and sub-grantees. In addition, the Department’s fiscal year 2019 

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

outstanding loan portfolio of $1.3 trillion.

The additional FTE are also a step towards moving the OIG to its historical FTE level. Prior to 

fiscal year 2014, the OIG dropped below 270 FTE only 4 times in its history: 1982 (269 FTE),

2000 (262 FTE), 2004 (268 FTE), and 2008 (264 FTE). Since fiscal year 2014, the OIG has had 

fewer than 250 FTE each year, with the lowest point being 224 FTE in fiscal year 2018. Having 

adequate FTE is essential for the OIG to fulfil its mission.
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The 2020 Request also covers law enforcement availability pay (required by 5 U.S.C. § 5545) 

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

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

the regular personnel compensation amount.

Audit Priorities

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

 William D. Ford Federal Direct Loan Program

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

provide the credit and manage and service the loan portfolio. Audits may assess the 

Department’s implementation of new initiatives, analyze FSA’s loan portfolio, review the 

Federal recognition process for the Accrediting Council for Independent Colleges and 

Schools, and evaluate the oversight of the servicing and collection of delinquent and 

defaulted loans.

 Contractors

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

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

consistently identified problems with FSA’s contract oversight. In fiscal year 2020, the OIG’s

work on FSA’s contractor oversight will concentrate on FSA’s ability to effectively oversee

contractors that service student loans for the Department and review the acceptability of 

schools’ annual audit report submissions.

 School Compliance Issues:

o Postsecondary Institutions— The OIG plans to continue to conduct audits of

proprietary, non-profit, and public schools. The interests of schools may not always 

align with the purposes of the Federal student financial assistance programs and could 

harm students and lead to the misuse of Federal funds. Planned and ongoing work may 

include school’s verification of applicant data, compliance with incentive compensation 

law and regulations, use of online program management providers, and compliance with 

Career Pathway program and Ability to Benefit requirements. 

o Department Oversight and Monitoring of Student Financial Assistant Program 

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

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

continue reviews of FSA’s Ombudsman Group’s processes to handle borrower 

complaints, FSA's controls over the Free Application for Federal Student Aid verification 

process, and the Department's controls over schools’ Clery Act reporting. The OIG also 

plans to conduct audits of emerging areas.
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State and Local Programs

 Disaster Recovery— The Bipartisan Budget Act of 2018 authorized $2.7 billion to help the 

recovery efforts of States, school districts, schools, and institutions of higher education that 

were impacted by Hurricanes Harvey, Irma and Maria and the 2017 California wildfires. The 

Department is in the process of awarding funds to affected areas. The OIG plans to perform 

work that includes reviews of funding allocations, data reliability, and uses of funds under 

five programs: Immediate Aid to Restart School Operations, Emergency Impact Aid for 

Displaced Students, Assistance for Homeless Children and Youth, Emergency Assistance to 

Institutions of Higher Education, and Defraying Costs of Enrolling Displaced Students in 

Higher Education.

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

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

States with more flexibility and control over education policy. States are implementing

accountability plans, and the Department must develop oversight processes to ensure that 

the plans are being followed. The OIG plans to review States’ implementation of their ESSA 

State Plans and the Department’s oversight of ESSA Statewide accountability systems.

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

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

special education, and related services. Our ongoing work includes State Educational 

Agencies' oversight over virtual school implementation of IDEA.

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

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

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

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

Replication and Expansion of High-Quality Charter Schools. This includes both the 

Department’s program oversight and implementation by selected grantees.

Departmental Operations

 FITARA— FITARA was enacted to improve the acquisition and management of Federal 

information technology (IT) assets. OMB has published related guidance to ensure that 

FITARA is applied consistently governmentwide in a way that is both workable and effective.

The Department contracts for many IT systems that support critical activities such as loan 

servicing and debt collection, technical assistance for grantees, and education research and 

program evaluations. The OIG’s ongoing work includes a review of the Department’s 

implementation of FITARA.

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

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

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

Department’s business operations and identify opportunities for improvement. Our planned 
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and ongoing work includes audits to assess selected aspects of the Department’s human 

resources functions, required assessments of the Department’s purchase card and travel 

card programs, and the Office for Civil Rights complaints dismissal process.

Investigation Priorities

At the requested staffing level, the OIG will conduct investigations of institutions (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 ESSA-funded programs. The OIG will also continue to investigate only the 

most significant fraud rings targeting Title IV through distance education.

Investigations of State and local programs are on the rise due in part to an increased ability to 

identify fraud and reporting by State and local officials resulting from the OIG outreach efforts. 

For example, the OIG continues to investigate providers of Supplemental Educational Services 

(SES) despite significant changes in the program. Fraud by SES providers involves 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. Based on current 

investigative activity and reporting, the OIG anticipates an increase in the number of 

investigations involving another non-school-hours program, 21st Century Community Learning 

Centers. Although this program may not continue to be funded by Congress, funds have 

already been disbursed.

Another area of concern requiring further investigation is related to total and permanent 

disability discharges of federal student loans. Due to information uncovered during a recent, 

successful case involving disability discharges, coupled with a rapid increase in discharges and 

apparent weaknesses in the program, OIG anticipates that there is significant fraud in this 

program. However, due to reduced staffing, the OIG will be limited in how aggressively it can 

proactively address this area.

Investigation Services updated its nationwide stakeholder outreach and fraud awareness 

training initiative. The initiative covers a 3-year cycle and will incorporate outreach opportunities 

through social media. The outreach plan supports OIG’s mission to promote the efficiency, 

effectiveness, and integrity of the Department’s programs and operations. Investigation 

Services conducts investigations and provides other assistance, including outreach, fraud 

awareness training, and stakeholder education to help ensure the integrity of the Department’s 

operations and programs and identify opportunities for improvement. The OIG can increase its 

brand awareness and educate both Department employees and external customers on how to 

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

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

expertise of the criminal investigators who execute these outreach activities. This plan aims to 

maximize outreach efficiency to ensure sufficient funds are available for essential investigative 

travel.

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

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

programs and operations. OIG investigations are often based on complex regulatory schemes, 
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involve persons and entities that are geographically dispersed, and can take several years to 

fully develop and resolve — but can result in significant recoveries for the Federal government.

In fiscal year 2020, the OIG anticipates focusing on the following areas:

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

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

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

Federal student aid programs represent the largest concentration of education program 

dollars at risk. In fiscal year 2018, our postsecondary investigations resulted in the recovery 

of approximately $42 million. These investigations currently represent approximately 

63 percent of OIG’s investigative inventory.

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

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

From fiscal year 2014 to fiscal year 2018, the OIG investigated 112 cases involving 

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

resulted in 130 indictments and 63 convictions securing more than $60.8 million in 

restitution, fines, and civil recoveries.

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

charter schools. From fiscal year 2014 through fiscal year 2018, the OIG conducted 44

investigations, which represented 39 percent of the OIG’s Elementary and Secondary 

inventory. During that time, charter school investigations resulted in 10 indictments, 

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

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

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

education; however, due to limited investigative resources, the OIG will generally focus on

only cases involving a significant financial loss. Distance education fraud rings represent, 

on average, 19 percent of the cases conducted by the OIG between fiscal years 2014 and 

2018. Currently these investigations represent about 25 percent of all open OIG cases. 

The OIG will continue to refer other matters to the Department so that future disbursements 

can be stopped. From fiscal year 2014 to fiscal year 2018, investigations in this area 

resulted in 181 indictments, 167 convictions, and recoveries of approximately $18.5 million. 

The OIG also referred to the Department distance education matters not investigated by the

OIG totaling more than $18.4 million in potential fraud.

 Disability Discharges—In fiscal year 2017, the Department discharged approximately 

$4.0 billion in student loans due to total and permanent disability. This figure has increased 

steadily from $2.3 billion since fiscal year 2013. Based on recent investigative activity, the 

OIG believes there is significant fraud in this area, and the OIG has initiated a proactive 

investigative project to identify it. The OIG anticipates it will have a significant number of 

investigations in this area in fiscal year 2020 but may be limited in the resources it can 

dedicate to these investigations.
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 Whistleblower and Retaliation Investigations—The OIG will continue to conduct

administrative investigations of whistleblower reprisal complaints, as well as to evaluate the 

underlying allegations to determine if criminal or civil investigations are warranted. Due to 

increased awareness, as well as legislative changes that now cover sub-grantees, OIG has 

seen the number of whistleblower reprisal complaints increase from 4 to 35 (775%) from FY 

2016 to FY 2018. This has resulted in an increase in the number of inquiries initiated by the 

OIG to resolve these allegations from 3 to 29 (867%).

IT Audits and Cybercrime Priorities

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

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

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

analytics.

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

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

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

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

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

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

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

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

Department’s programs.

The OIG cybercrime investigations include the investigation of intrusions and unauthorized 

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

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

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

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

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

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

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

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

OIG is requesting $20.8 million in fiscal year 2020 for Non-Personnel costs, an increase of $1.0

million over the fiscal year 2019 Appropriation. Of the total, $14.5 million is for Departmental 

Centralized Services (overhead expenses), including the Department’s IT infrastructure and 

support contracts (Department IT contracts), and $6.3 million is for other non-personnel 

operational costs.
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Departmental Centralized Services

OIG is requesting $14.5 million in fiscal year 2020 for Non-Personnel Overhead, an increase of 

$418,000 over the fiscal year 2019 appropriation. The major items included in overhead costs 

are: rent, interagency agreements for services such as payroll processing, guard services, 

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

communications and IT amounts will be used primarily for the Department IT contracts, which 

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

support, maintenance, and improvements. Rent and the Department IT contract use 

approximately 87 percent of the centralized services resources.

Departmental Centralized Services

(dollars in thousands)

Item

2019

Appropriation 2020 Request Difference

Rent $6,671 $6,916 $245

Central IT 5,811 5,720 -91

Other Central Support 1,590 1,854 264

Centralized Services $14,072 $14,490 $418

Other Non-Personnel Costs

Travel

OIG is requesting $1.4 million in fiscal year 2020 for travel, an increase of $24,000 over the

fiscal year 2019 appropriation. The requested amount for fiscal year 2020 covers travel 

expenses for the requested staff of auditors, investigators, and other specialists and is 

necessary to perform the OIG audit and investigative mission. 

Most OIG work involves travel to SEAs, LEAs, schools, other grantees, loan servicers, 

contractors, and other recipients of Federal education funds, to conduct audits and 

investigations, interview witnesses and subjects, and gather evidence. Many of these entities 

and people are not located in the cities where the OIG has staff, thus necessitating travel.

Advisory and Assistance Services

OIG is requesting $327,000 in fiscal year 2020 for advisory and assistance services, an 

increase of $21,000 over the fiscal year 2019 appropriation, to contract for audit services that 

support mandated OIG FISMA work. The requested funding level would provide contractor 

support for IT security reviews of systems; audits of the Department’s IT contracts; reviews of 

systems development life cycles, enterprise architecture, and IT project management; and 

computer forensic analysis. 
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Other Services

OIG is requesting $1.793 million in fiscal year 2020 for other services, an increase of $51,000 

over the fiscal year 2019 appropriation. This amount is primarily to contract with an 

independent certified public accounting firm to audit the Department-wide financial statements. 

In accordance with the Inspectors General Act of 1978, as amended, and the Chief Financial 

Officer Act, the OIG oversees the financial statement audits. The audits will result in reports on 

the Department-wide financial statements, FSA’s financial statements, and the Closing 

Package. Audits will examine and analyze account balances, review applicable financial 

systems, and evaluate internal controls and compliance with significant laws, regulations, 

contracts, and grant agreements. Audit results will assess the fair presentation of the financial 

statements, make recommendations for improving financial management, accountability and 

stewardship, and identify areas requiring further review by management. The 2020 Request 

also includes $476,000 for car leases, an increase of $14,000 over the fiscal year 2019

appropriation.

Training

OIG is requesting $366,000 in fiscal year 2020 for training, an increase of $68,000 over the 

2019 appropriation, for the OIG-specific training of auditors, investigators, and business 

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

$117,000 in support of Department training operations, which reflects a $53,000 increase from 

the fiscal year 2019 appropriation.

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

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

performing work under generally accepted Government auditing standards must maintain 

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

every 2 years, 80 hours of governmental auditing training, with at least 20 hours of CPEs in 

each 2-year period. The OIG’s criminal investigators must also complete periodic statutory and 

Attorney General-mandated law enforcement training requirements to maintain their statutory 

law enforcement authorities. The OIG maintains a staff of accredited trainers to deliver firearms 

and other mandated training to the OIG investigators, and the trainers require specific refresher 

courses to maintain their accreditation. In addition, the requested amount will cover the costs of 

review courses and examinations to obtain professional certifications, such as Certified Public 

Accountant, Certified Information Systems Auditor, Computer Forensic Examiner, and Certified 

Fraud Examiner; send the OIG investigators to FLETC/IGCIA; and obtain advanced IT skills to 

address ever increasing computer requirements and processes, as well as combat new threats 

and weaknesses.

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

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

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

required training while attending only essential/critical vendor-offered courses. The OIG will 

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

community-sponsored training events.
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Goods/Services from Federal Sources

OIG is requesting $412,000 in fiscal year 2020 for goods and services from Federal sources, an 

increase of $15,000 over the fiscal year 2019 appropriation. Within this request, $139,077 will

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

Efficiency (CIGIE). This contribution is 0.22 percent of the OIG 2020 designated funding level 

based on a total budget request of $63.4 million, including the CIGIE amount. The fiscal year

2020 request also includes $180,250 in miscellaneous interagency agreements covering a 

variety of services provided by other Federal agencies, of which $105,000 is designated for 

FLETC and IGCIA training cost for the OIG Investigations staff.

Equipment Operations/Maintenance

OIG is requesting $5,000 in fiscal year 2020 for equipment operations/maintenance, a decrease 

of $1,000 below the fiscal year 2019 appropriation, for equipment repair and maintenance of 

copiers.

IT Services/Contracts

OIG is requesting $700,000 in fiscal year 2020 for IT services/contracts, an increase of 

$127,000 million over the fiscal year 2019 appropriation, for contracts for system support and 

expertise. This request includes programmer services and maintenance for various OIG 

systems and applications, and services and support for IT security operations, computer 

forensics, and data analytics experts. None of these costs are covered by the Department 

Centralized Services IT funding.

IT Equipment/Software 

OIG is requesting $824,000 in fiscal year 2020 for IT equipment/software, an increase of 

$103,000 over the fiscal year 2019 appropriation, to support non-centralized IT software 

maintenance agreements, software license renewals, and equipment purchases. 

Building Alterations

OIG is requesting $98,000 in fiscal year 2020 for building alternations, an increase of 

$60,000 over the fiscal year 2019 appropriation, in building alterations costs not included in 

the Department Centralized Services. This amount will provide funding for miscellaneous 

facilities projects, such as space reconfigurations, furniture repair and/or replacement, and 

other costs associated with maintaining the work environment.
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PROGRAM PERFORMANCE INFORMATION

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

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

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

Performance Measures:

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

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

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

evaluate our performance.

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

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

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

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

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

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

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

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

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

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

workplace environment, and (4) recognize achievement.

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

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

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

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

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

performance measures are shown below.
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Measure: Audits initiated each year in accordance with policy and focused on areas of high risk 

or significant importance.

Year Target Percent Actual Percent

2016 85 100

2017 85 100

2018 85 100

2019 85

2020 85

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

high risk or significant importance.

Year Target Percent Actual Percent

2016 80 90

2017 80 89

2018 80 92

2019 80

2020 80

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

Department and corrective action plans agreed to by OIG management.

Year Target Percent Actual Percent

2016 90 99

2017 90 98

2018 90 95

2019 90

2020 90

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

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

Year Target Percent Actual Percent

2016 70 95

2017 70 93

2018 70 92

2019 70

2020 70
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Measure: Preliminary inquiries of fraud, waste, and abuse were processed for case initiation 

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

Year Target Percent Actual Percent

2016 75 79

2017 75 76

2018 75 76

2019 75

2020 75

Measure: Preliminary inquiries converted to full investigations by ITACCI that resulted in a 

criminal, civil or administrative action, or monetary result.

Year Target Percent Actual Percent

2016 65 75

2017 50 63

2018 50 50

2019 50

2020 50

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

management by the agreed upon date.

Year Target Percent Actual Percent

2016 75 100

2017 75 100

2018 75 100

2019 75

2020 75

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

regulations, or other policies.

Year Target Percent Actual Percent

2016 70 85

2017 70 77

2018 70 86

2019 70

2020 70
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Measure: Freedom of Information Act responses processed in accordance with statutory 

requirements and delivered to requestors within required deadlines.

Year Target Actual

2016 90 91

2017 90 77

2018 90 91

2019 90

2020 90

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

established deadlines.

Year Target Percent Actual Percent

2016 95 100

2017 95 100

2018 75 94

2019 80

2020 80