Department of the Treasury 

Office of Inspector General 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
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Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement ................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2 – Budget Adjustments Table ................................................................................................. 5

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 6

D – Appropriations Language and Explanation of Changes ...................................................... 7

E – Legislative Proposals ............................................................................................................ 7

Section II – Annual Performance Plan and Report ................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity .................................................................... 14

2.1.1 – Audit Resources and Measures ..................................................................................... 14

Audit Budget and Performance ................................................................................................. 14

2.1.2 – Investigations Resources and Measures ........................................................................ 15

Investigations Budget and Performance ................................................................................... 15

C – Changes in Performance Measures .................................................................................... 16

D –Evidence Building Activity ................................................................................................. 16

Section III – Additional Information ........................................................................................ 17

A – Summary of Capital Investments ....................................................................................... 17

 
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Section I – Budget Request 

A – Mission Statement 

To promote the integrity, efficiency, and effectiveness in programs and operations within the 

Department of the Treasury and OIG’s jurisdictional boundaries. 

B – Summary of the Request 

The FY 2022 request for $42,362,000 for the OIG will be used to fund audit, investigative, and 

mission support activities to meet the requirements of the Inspector General Act of 1978, as 

amended, and other statutes including, but not limited to: the Cybersecurity Act of 2015; DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank); Federal Information 

Security Modernization Act of 2014 (FISMA); Federal Information Technology Acquisition 

Reform Act; Government Management Reform Act; Payment Integrity Information Act of 2019 

(PIIA; Government Charge Card Abuse Prevention Act of 2012; Federal Deposit Insurance Act; 

Small Business Jobs Act of 2010; Resources and Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE); the 

Coronavirus Aid, Relief, and Economic Security Act (CARES Act); the Consolidated 

Appropriations Act, 2021; and the American Rescue Plan Act (ARP). Specific mandates include: 

(1) audits of the Department’s financial statements (2) audits or evaluations of the Department’s 

information systems security program and practices as required by FISMA, (3) assessments of 

the Department’s cybersecurity information sharing, (4) audits of improper payments and 

recoveries under PIIA, (5) risk assessments and audits of charge card programs, and (6) material 

loss reviews of failed insured depositary institutions regulated by the Office of the Comptroller 

of the Currency (OCC). 

 

The OIG will also conduct audits of the Department’s highest risk programs and operations, and 

respond to stakeholder requests for specific work, including: (1) operating in an uncertain 

environment, (2) cyber threats, (3) Bank Secrecy Act, anti-money laundering, and anti-terrorist 

financing enforcement, (4) efforts to promote spending transparency and to prevent and detect 

improper payments, (5) information technology acquisition and project management; and (6) 

certain Treasury Pandemic Relief programs. 

Within its jurisdictional boundaries, the OIG also conducts audit of the highest risk programs and 

operations of Gulf Coast Ecosystem Restoration Council (Council) established under RESTORE. 

The highest risk programs and operations identified as the Council’s management and performance 

challenge include: (1) Federal statutory and regulatory compliance, (2) grant and interagency 

agreement compliance monitoring, and (3) Loss of Key Leadership Over Administration of Gulf 

Coast Restoration Activities. 

The OIG will continue its investigative work to prevent, detect, and investigate complaints of 

fraud, waste, and abuse impacting Treasury programs and operations. This includes the detection 

and prevention or deterrence of employee misconduct and fraud. 

 
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Office of Inspector General’s FY 2022 Budget Request 

In accordance with the requirements of Section 6(f) (1) of the Inspector General Act of 1978, as 

amended, the Treasury Inspector General submits the following information relating to the 

OIG’s requested budget for FY 2022: 

 The aggregate budget request for the operations of the OIG is $52,362,000 comprised of 

$42,362,000 from direct appropriations, and $10,000,000 from reimbursable collections; 

 The portion of this amount needed for OIG training is $650,000; and 

 The portion of this amount estimated in support the Council of Inspectors General on 

Integrity and Efficiency (CIGIE) is $92,500. 

The amount requested for training satisfies all OIG training needs for FY 2022. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audit 128 $30,524 136 $30,524 144 $31,182 5.9% 2.2% 

Investigations 39 $10,520 44 $10,520 46 $11,180 4.5% 6.3% 

Subtotal New Appropriated Resources 167 $41,044 180 $41,044 190 $42,362 5.6% 3.2% 

Other Resources 

Reimbursable 0 $6,000 0 $9,000 0 $9,000 NA 0.0% 

Subtotal Other Resources 0 $6,000 0 $9,000 0 $9,000 NA 0.0% 

Total Budgetary Resources 167 47,044 180 $50,044 190 $51,362 5.6% 2.6% 

FY 2020 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

In FY 2021 additional appropriated resources were provided by the Consolidated Appropriations Act of 2021 (CAA) and the American Rescue 

Plan Act of 2021 (ARP) which are not included above: 

1. $3 Million for oversight of the Emergency Rental Assistance program (ARP). 

2. $6.5 million for oversight of the Emergency Rental Assistance program (CAA). 

3. $2.6 million for oversight of the Homeowner Assistance Fund (ARP). 

4. $35 million for oversight of the programs authorized in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
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1.2 – Budget Adjustments Table 

Dollars in Thousands 

FTE Amount 

FY 2021 Operating Plan 180 $41,044 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 1,258 

Pay Annualization (1.0% average pay raise) 0 75 

Pay Raise (2.7% average pay raise) 0 677 

FERS Contribution Increase 0 284 

Non-Pay 0 222 

FY 2022 Current Services 180 $42,302 

Program Changes: 

Program Decreases 0 (1,709) 

 Reduction in Contracts and Absorption of Rent Increase 0 (1,709) 

Program Increases: 10 1,769 

Workforce FTE Adjustment 10 1,709 

Electric Vehicles and Associated Infrastructure 0 60 

Subtotal Program Changes 10 $60 

FY 2022 President's Budget Request 190 $42,362 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) .......................................................+$1,258,000 / +0 FTE 

Pay Annualization (1.0%) +$75,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$677,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$284,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$222,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Program Decreases................................................................-$1,709,000 / -0 FTE 

Reduction in Contracts and Absorption of Rent Increase -$1,709,000 /-0 FTE 

Program decrease in contracts and to accommodate increased administrative costs, including 

rent. 

Program Increases ...................................................................................+$1,769,000 / +10 FTE 

Workforce FTE Adjustment +$1,709,000 / +10 FTE 

This adjustment is required to right-size the workforce for increased audit and investigative 

oversight and to provide necessary support staff. 
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Electric Vehicles and Associated Infrastructure +$60,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home 

and Abroad”, the U.S. Department of the Treasury (Treasury or Department) joins in the 

Administration’s priority to develop a comprehensive plan to create good jobs and stimulate 

clean energy industries by revitalizing the Federal Government’s sustainability efforts. This 

includes Treasury’s commitment to use all available procurement authorities to augment its 

Departmentwide fleet management program with a continued focus on the leasing of electric 

vehicles (EV) and purchasing, installing, and maintaining essential infrastructure. The planned 

resources will help Treasury comply with the requirements set forth by E.O. 14008 and reduce 

the carbon footprint of emissions into the atmosphere by acquiring an updated fleet of zeroemissions vehicles that can support mission operations. 

For FY 2022, the OIG requests $60,000 to fund the eventual conversion of its fleet to EV. 

Of that money, a to-be-determined amount will be allocated to support the purchase, installation, 

maintenance, and/or upgrade of infrastructure required to maintain an EV fleet management 

program. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 22,000 20,905 22,762 

11.3 - Other than full-time permanent 10 10 10 

11.5 - Other personnel compensation 400 900 900 

11.9 - Personnel Compensation (Total) 22,410 21,815 23,672 

12.0 - Personnel benefits 8,000 8,095 7,575 

13.0 - Benefits for former personnel 15 15 15 

Total Personnel and Compensation Benefits $30,425 $29,925 $31,262 

21.0 - Travel and transportation of persons 700 700 631 

23.1 - Rental payments to GSA 4,126 4,306 4,306 

23.3 - Communications, utilities, and miscellaneous charges 900 900 900 

24.0 - Printing and reproduction 10 10 10 

25.2 - Other services from non-Federal sources 2,100 2,300 2,300 

25.3 - Other goods and services from Federal sources 2,200 2,300 2,300 

25.6 - Medical care 75 75 75 

25.7 - Operation and maintenance of equipment 58 58 58 

26.0 - Supplies and materials 200 200 250 

31.0 – Equipment 250 250 250 

91.0 - Unvouchered 0 20 20 

Total Non-Personnel $10,619 $11,119 $11,100 

Total Obligations $41,044 $41,044 $42,362 

 

Full-time Equivalents (FTE) 167 180 190 

Amounts reflect updated obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

FY 2020 actual obligations are updated from MAX schedule O entry. 

In FY 2021 additional appropriated resources were provided by CAA and ARP which are not included above: 

1. $3 Million for oversight of the Emergency Rental Assistance program (ARP). 

2. $6.5 million for oversight of the Emergency Rental Assistance program (CAA). 

3. $2.6 million for oversight of the Homeowner Assistance Fund (ARP). 

4. $35 million for oversight of the programs authorized in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). 
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D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

OFFICE OF INSPECTOR GENERAL 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Office of Inspector General in 

carrying out the provisions of the Inspector General Act of 

1978, [$41,044,000]$42,362,000, including hire of passenger 

motor vehicles; of which not to exceed $100,000 shall be 

available for unforeseen emergencies of a confidential nature, 

to be allocated and expended under the direction of the 

Inspector General of the Treasury; of which up to $2,800,000 to 

remain available until September 30, [2022]2023, shall be for 

audits and investigations conducted pursuant to section 1608 of 

the Resources and Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the Gulf Coast States 

Act of 2012 (33 U.S.C. 1321 note); and of which not to exceed 

$1,000 shall be available for official reception and 

representation expenses. (Department of the Treasury 

Appropriations Act, 2021.)

E – Legislative Proposals 

The OIG has no legislative proposals. 

 
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Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Through the audit and investigative functions, the OIG supports the Department of the 

Treasury’s Strategic Plan. In accordance with the Government Performance and Results Act 

Modernization Act (GPRAMA) of 2010, Treasury is currently developing the FY 2022 – 2026 

Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. The OIG will publish a component plan that aligns 

bureau activities and priorities to the Department’s by early spring 2022. 

The FY 2022 requested resources will enable the OIG to perform audits and investigations of 

Treasury programs and operations under its jurisdiction, except for those of the Internal Revenue 

Service (IRS), the Troubled Asset Relief Program (TARP), the Special Inspector General for 

Pandemic Recovery (SIGPR), and to keep the Secretary of the Treasury and Congress fully 

informed of problems, deficiencies, and the need for corrective action. By statute, the OIG also 

performs oversight of the Gulf Coast Ecosystem Restoration Council, an independent Federal 

entity. 

Major challenges and risks for Treasury: 

Operating in an Uncertain Environment

This challenge addresses the external factors and future uncertainties that affect the Department’s 

programs and operations. Among the most notable is the COVID-19 outbreak. The COVID-19 

outbreak presented unique complexities for Treasury to include, among other things, 

implementing measures for the health and safety of its workforce, as well as administering more 

than $2 trillion in financial assistance under pandemic-related legislation. Despite these 

challenges, Treasury responded with limited onsite staff and details from within Treasury, other 

Federal agencies, and outside contractors. In addition to its normal payment operations, Treasury 

leveraged existing resources and processes to facilitate the delivery of billions of dollars in 

pandemic funding. While Treasury faces unforeseen challenges working through the COVID-19 

pandemic going into fiscal year 2022, other previously reported uncertainties have yet to be 

resolved. Overall, human capital management remains a high-risk area as the lengthy security 

clearance process has hampered the recruitment of cybersecurity personnel and other mission 

critical positions dealing with programs and materials of the highest sensitivity. 

 

As another complicating factor, Treasury must operate in the repeated cycle of budget and debt 

ceiling stopgaps. While the debt ceiling has been lifted through July 31, 2021, it is only 

temporary. The OIG will assess the Department’s ability to meet new mandates and manage 

challenges and risks to its programs and operations. 

Cyber Threats 

Treasury has maintained steady progress in addressing the continual and on-going challenges 

that the Federal Government and private sector face, including the threat of ransomware and 

difficulty obtaining cybersecurity personnel. Cyber threats are a persistent concern as Treasury’s 

information systems are critical to the core functions of government and the Nation’s financial 

infrastructure. Attempted cyber-attacks against Federal agencies, including Treasury, and 
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financial institutions continue to increase in frequency and severity, in addition to continuously 

evolving. There are risks that Treasury’s systems and resources already in use, including critical 

infrastructure, contain components from sources that have yet to be designated as threats. 

The Department will need to monitor developments in this area closely and plan for the 

possibility that its current supply chain may no longer be available in the near future. 

In addition to its own networks and systems, the Department must be cognizant of, and mitigate, 

the risks posed by attacks made against other agencies and Treasury contractors and 

subcontractors. Furthermore, effective public-private coordination continues to be required to 

address the cyber threat against the Nation’s critical infrastructure. In this regard, Treasury is 

looked upon to provide effective leadership to financial institutions in particular, and the 

financial sector in general, to strengthen awareness and preparedness against cyber threats. 

As an ongoing challenge, Treasury will need to balance cybersecurity demands while 

modernizing and maintaining information technology (IT) systems. This is becoming more and 

more critical, especially since the COVID-19 pandemic shifted the Federal workforce to 

primarily telework status, which increases the opportunities for cyber-attacks. Long-standing 

cyber threats pose increased risks to networks and information systems during the ongoing 

COVID-19 global health pandemic as more opportunities are available for bad actors to stage 

cyber-attacks. As the tools used to perpetrate cyber-attacks become easier to use and more 

widespread, less technological knowledge and fewer resources are needed to launch successful 

attacks of increasing sophistication. To this end, Treasury must ensure that cybersecurity is fully 

integrated in its IT investment decisions. OIG conducts audits of Treasury’s information systems 

and operations. As part of these audits, OIG conducts penetration tests of selected Treasury 

bureaus and offices to determine whether sufficient protections exist to prevent and detect 

unauthorized access to Treasury networks and systems. 

Anti-Money Laundering/Terrorist Financing and Bank Secrecy Act Enforcement 

Identifying, disrupting, and dismantling the financial networks that support rogue regimes, 

terrorist organizations, transnational criminal organizations, and other threats to the national 

security of the United States and our allies continues to be challenging as the Office of Terrorism 

and Financial Intelligence’s (TFI) role to counter these financial networks and threats has grown 

because its economic authorities are key tools to carry out U.S. policy. Effective coordination 

and collaboration and TFI’s ability to effectively gather and analyze intelligence information 

requires a stable cadre of experienced staff. Concerns over TFI’s ability to meet mission critical 

objectives are heightened by multiple vacant key positions. The security clearance process has 

significantly impacted Treasury’s human capital management and is a systemic issue 

government-wide. Stability, experienced leadership, and coordination within TFI is imperative to 

enhance information gathering and intelligence analysis and increase efficiency. 

Data security and information sharing are challenges for the Financial Crimes Enforcement 

Network (FinCEN), which has experienced unauthorized disclosures of Bank Secrecy Act 

information. The challenge for FinCEN is to ensure the Bank Secrecy Act data remain secure to 

maintain the confidence of the financial sector while meeting the access needs of law 

enforcement, regulatory, and intelligence partners. 
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Given the criticality of Treasury’s mission, its role to carry out U.S. policy, and resource 

constraints, the OIG continues to consider anti-money laundering and combating terrorist 

financing programs and operations as inherently high-risk. In addition, the COVID-19 global 

pandemic created additional challenges for TFI senior management. For example, many TFI 

employees regularly work with classified information and with international organizations 

involving travel. Protocols for social distancing and expanded telework are challenges for TFI to 

accomplish its mission. Through OIG’s ongoing audits and reviews, the OIG monitors this highrisk area closely. 

Efforts to Promote Spending Transparency and to Prevent and Detect Improper Payments 

Given the broad implications and critical roles assigned to Treasury by the Digital Accountability 

and Transparency Act of 2014 (DATA Act), there are renewed challenges facing Treasury given 

the need to ensure transparency to the taxpayer and other stakeholders on the use of funds 

distributed under the economic relief packages enacted to address individuals and industry 

sectors impacted by the COVID-19 pandemic. DATA Act reporting is now seen as one of the 

means to ensure transparency into the use of Federal funds related to COVID-19 expenditures. 

In its April 2020 memorandum, Implementation Guidance for Supplemental Funding Provided in 

Response to the Coronavirus Disease 2019 (COVID-19) OMB requires that agencies leverage 

existing financial accountability and transparency mechanisms. In part, OMB requires (1) 

tracking of COVID-19 expenditures with usage of a Disaster Emergency Fund Code; (2) 

reporting financial assistance recipient information within two weeks of issuance, with the 

exception of loans; and (3) reporting outlay information at the financial award transaction level. 

To further enhance transparency, Treasury devoted significant resources and leveraged existing 

financial reporting systems to promote spending transparency and use of Federal financial data to 

strengthen government-wide decision-making. Treasury has also shifted from quarterly to 

monthly reporting and certification beginning with the period ending June 2020, and plans to add 

a program activity attribute beginning with the first quarter of fiscal year 2021. The speed in 

which supplemental funding was distributed created new data management needs for Treasury 

along with labor intensive ingestion of data associated with the application for, and issuance of, 

economic relief. The rapid delivery of funds within short timeframes may create opportunities 

for illicit activity by anyone attempting to misuse or abuse funds that were intended for COVID19 relief. Considering the challenges and risks associated with ensuring economic relief is 

deployed and used for intended purposes, Treasury must continue to address reporting and data 

quality issues noted in DATA Act audits and intensify efforts to reduce improper payments. 

Reliable and transparent data is critical to the Department’s ongoing implementation of 

government-wide reforms for making data accessible and useful for decision-making as 

authorized by the Foundations for Evidence-Based Policymaking Act of 2018 (Evidence Act).

The OIG will monitor the Department’s progress in this area. 

The OIG also continues to identify and analyze the risks of improper payments and reviews the 

controls and safeguards put in place by Treasury to prevent and recover such payments as set 

forth in the Payment Integrity Information Act of 2019 (PIIA).

Information Technology Acquisition and Project Management 

Government-wide implementation of the Federal Information Technology Acquisition Reform 

Act (FITARA) continues to be an ongoing challenge. FITARA expanded the involvement of 

Chief Information Officers of Federal agencies in IT decision making, including annual and 
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multi-year planning, programming, budgeting, execution, reporting, management, governance, 

and oversight functions. Among FITARA-specific requirements, the areas that Treasury needs 

most improvement were enhanced transparency and risk management and improved 

cybersecurity. Since February 2015, the Government Accountability Office has included the 

management of IT acquisitions and operations on its high-risk list as cost overruns and schedule 

delays impact mission related outcomes government-wide. The OIG monitors the Department’s 

progress to fully implement FITARA requirements and management of IT projects. 

Non-IT related acquisitions also require attention to ensure timely delivery and minimize cost 

overruns for achieving cost savings. In this regard, the OIG plans audit oversight of the Bureau 

of Engraving and Printing’s large construction project of a new facility to ensure continuity of 

operations of the bureau. 

 

COVID-19 Pandemic Relief 

The COVID-19 pandemic affected the health and economic stability of communities 

nationwide. Congress passed a series of legislation to address the COVID-19 health crisis and 

the economic fallout affecting individuals, businesses, and other industry sectors. Treasury has 

been instrumental in implementing and/or supporting other Federal agencies in implementation 

of economic relief provisions of the CARES Act, the Consolidated Appropriations Act, 2021, 

and the American Rescue Plan Act (ARP). Along with administering and delivering economic 

relief, Treasury must manage the unprecedented oversight required by the aforementioned 

legislation. In the context of this overarching challenge, OIG recognizes the breadth and scope of 

Treasury’s responsibilities as it impacts programs, operations, and activities regardless of 

jurisdictional oversight boundaries. With no clear end to the COVID-19 pandemic in sight, 

Treasury must continue to navigate through this challenging time and be prepared to administer 

another fast-paced relief package in the near future, if legislated. To date, Treasury has been 

able to leverage its existing workforce and hired contractors to address the demands of the 

CARES Act workload. That said, there was reported strain associated with working remotely 

while managing normal responsibilities and additional work due to the COVID-19 pandemic. 

Going forward, Treasury may experience difficulties in balancing its new responsibilities and 

workloads while managing several ongoing challenges as described throughout this document. 

Major challenges and risks for the Gulf Coast Ecosystem Restoration Council (Council) 

Federal Statutory and Regulatory Compliance 

The Council must ensure that activities and projects funded by the Resources and Ecosystems 

Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 

2012 (RESTORE Act) meet all environmental laws and regulations at the Federal and State 

level, and must also ensure its compliance with applicable laws and regulations as a Federal 

entity. The Council is challenged to follow Federal statutory and regulatory compliance 

requirements related to the DATA Act, IPERA, and the Evidence Act. The Council still faces 

challenges in meeting these Federal statutory and regulatory compliance stemming from the need 

for a reliable grants management system among other things. With the uncertainty of a 

successful transition to a new grants management system, the Council’s ability to comply with 

new as well as existing Federal requirements may be in question. In addition, there has been a 

loss of key leaders at the Council which will make a successful transition even more challenging. 
OIG - 12 

The OIG will continue to focus audits on the Council’s continued implementation and 

compliance with key Federal mandates. 

Grant and Interagency Agreement Compliance Monitoring 

Given the increase in grants and interagency agreements, the OIG continues to emphasize the 

necessity to monitor projects and award recipients of RESTORE Act funds. This challenge is 

further impacted by the Council’s transition to a new grants management system during fiscal 

year 2020. The OIG audits will focus on the Council’s monitoring controls in place to ensure 

projects’ and recipients comply with grant and agency agreements and funds are used as 

intended. 

In the Investigations operational area, OIG has established eight priorities for FY 2021: 

Threats Against Treasury Employees and Facilities 

Investigative efforts into threats against Treasury employees and facilities are critical in ensuring 

safety for the Department. These matters require prompt attention and coordination with federal, 

state, and local authorities to protect those involved.

Criminal and Serious Employee Misconduct 

The OIG Office of Investigation’s highest priority is investigating complaints involving alleged 

criminal and other serious misconduct by Treasury employees. OIG investigates allegations of 

the general crimes enumerated in Title 18 of the U.S. Code, other federal crimes, alleged 

violations of the Ethics in Government Act, and allegations of serious misconduct prohibited by 

the Standards of Ethical Conduct for Employees of the Executive Branch. Several Treasury 

bureaus and offices have additional rules and regulations relating to ethical standards for their 

own employees, and OIG also investigates complaints of alleged violations of these rules and 

regulations. 

Fraud Involving Contracts, Grants, Guarantees, and Federal Funds 

The OIG Office of Investigations conducts investigations into allegations of fraud and other 

crimes involving Treasury contracts, grants, loan guarantees, and federal funds, including 

investigations made in accordance with Sections 1602 and 1603 of the Recovery Act. Such 

allegations often involve contractors, entities, and individuals who are providing or seeking to 

provide goods or services to the Department. The Office of Investigations receives complaints 

alleging criminal or other misconduct from employees, contractors, members of the public, and 

the Congress. 

Financial Programs and Operations Crime 

Investigations relating to Treasury financial programs and operations that involve Treasury 

bureaus issuing licenses, providing benefits, and exercising oversight of U.S. financial 

institutions; frauds involving improper Federal payments such as those involving stolen, 

counterfeit, altered or fraudulently obtained Treasury checks and ACH payments; frauds 

involving improper Federal payments such as those involving Treasury checks and the Check 

Forgery Insurance Fund; crimes involving the improperly-redirected benefits of federal 

government payees; and false claims of any kind that seek Federal payments, including federal 

income tax refunds, Social Security benefits, and Department of Veterans’ Affairs. These matters 

require prompt attention to protect the public and the integrity of the department. 
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Cyber Threats against Treasury Systems and Cyber Enabled Financial Crimes Fraud 

The OIG conducts investigations into Cyber intrusions of Treasury systems, the illicit removal of 

Treasury protected information from Treasury systems and Cyber enabled criminal activity 

impacting Treasury programs and operations, such as Business Email Compromise, Personal 

Email Compromise and other schemes.

Treasury Employee and Bureau Impersonation Scams 

Investigations relating to scammers who represent themselves as Treasury employees to defraud 

the citizens of the U.S. and other countries by the impersonation of Treasury employees and/or 

the fraudulent use of the Treasury and Bureau seals. This is a problem that has significantly 

increased in the last few years. These matters require prompt attention to protect the public and 

the integrity of the Department. 

Investigating Fraud Related to Persons Representing Themselves as “Sovereign Citizens” 

Submitting Fictitious Financial Instruments to Treasury, Financial Institutions, and Private 

Companies 

The OIG conducts investigations into criminal activity associated with individuals who attempt 

to scam the Treasury, financial institutions, private companies, and citizens by submitting 

fictitious financial instruments purporting to be issued by or drawn on the Treasury or other 

counterfeit documents to perpetrate a variety of fraud schemes. These matters have become more 

prevalent and require prompt coordination with Federal, State, and local authorities to protect the 

targets of the scams. 

Identifying and Investigating Fraud Related to the Coronavirus Aid, Relief, and Economic 

Security (CARES) Act and other related special programs related to minimize economic 

consequences of the Pandemic. 

The OIG conducts inquiries and investigations of waste, fraud, and abuse related to Title V of the 

CARES Act, which established the Coronavirus Relief Fund, as well as the Emergency Rental 

Assistance program (ERA/ERA2), the Homeowner Assistance Fund (HAF) and the State Small 

Business Credit Initiative (SSBCI). 
OIG - 14 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $27,653 $26,014 $24,413 $25,699 $30,524 $30,524 $31,182 

Reimbursable $7,299 $6,726 $6,116 $6,236 $9,000 $9,000 $9,000 

Budget Activity Total $34,952 $32,740 $30,529 $31,935 $39,524 $39,524 $41,182 

Full-time Equivalents (FTE) 137 137 115 119 128 128 136 

 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Number of Completed Audit 

Products 98 90 91 79 85 76 74 74 

Percent of Statutory Audits 

Completed by the Required Date 100 100 100 100 100 100 100 100 

Audit Budget and Performance 

($31,182,000 from direct appropriations, and $9,000,000 from reimbursable resources): 

The Office of Audit (OA) conducts audits intended to ensure the accountability of resources, 

protect information, and provide recommendations for improving the integrity, economy, 

efficiency, effectiveness, of programs and operations within the Department and within OIG’s 

jurisdictional boundaries, which include those of the Council. The requested funding for 

FY 2022 is necessary to perform mandated work (including audits/assessments of financial 

statements, information systems security program and practices, cybersecurity information 

sharing, improper payments and recoveries, charge card programs, material loss reviews of failed 

insured depository institutions regulated by the OCC, and data quality audits of spending data), 

and to maintain an appropriate level of oversight of programs and operations consistent with the 

OIG’s responsibilities under the Inspector General Act of 1978, amended. In FY 2022, OIG will 

also continue to provide oversight of Treasury’s government-wide role and responsibilities under 

the CARES Act, FY2021 Consolidated Appropriations Act, and ARP. Reimbursable funding 

agreements support financial statement audits of Treasury and oversight of the State Small 

Business Credit Initiative and the Small Business Lending Fund. Reimbursable funding 

agreements also support Treasury financial audits for which Treasury OIG is the lead office in 

selecting and overseeing contractor selection. 

Description of Performance

OA plans to complete 74 audit products in FY 2021, and 74 in FY 2022. The number of audit 

products was reduced beginning in FY 2019 due to decreased staffing to cover increased 

administrative costs (rent). In FY 2020, the OA completed 85 audit products, and met all 

statutory audit timelines. Audit products included audit reports, evaluation reports, the Inspector 

General’s Semi-Annual Reports to Congress, and the Inspector General’s annual memoranda to 

the Secretary of the Treasury and the designated Chairperson of the Gulf Coast Ecosystem 
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Restoration Council, on the most significant management and performance challenges facing the 

Department and Gulf Coast Ecosystem Restoration Council, respectively. 

Audit products can also include responses to specific information requests by the Congress. By 

completing independent and timely assessments of programs and operations across its 

jurisdiction, the Office of Audit supports the OIG’s mission of promoting integrity, efficiency, 

effectiveness of those programs and operations. The recommendations for improvement in 

programs and operations noted through OIG’s assessments directly support both the Treasury 

Department and the Gulf Coast Ecosystem Restoration Council in achieving their strategic goals 

and meeting their respective missions. 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $6,913 $7,164 $11,512 $11,344 $10,520 $10,520 $11,180 

Budget Activity Total $6,913 $7,164 $11,512 $11,344 $10,520 $10,520 $11,180 

Full-time Equivalents (FTE) 33 43 42 39 39 44 46 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of All Cases Closed During 

Fiscal Year That Were Referred for 

Criminal/Civil/Administrative Action. 

84 84 98 80 91 80 80 80 

Investigations Budget and Performance 

($11,180,000 from direct appropriations): 

The Office of Investigations (OI) prevents, detects, and investigates complaints of fraud, waste, 

and abuse impacting Treasury programs and operations. This includes the detection and 

prevention or deterrence of employee misconduct and fraud, or related financial crimes within or 

directed against Treasury. OI refers its cases to the Department of Justice, state or local 

prosecutors for criminal prosecution or civil litigation, or to agency officials for corrective 

administrative action. 

With almost $4 billion in Treasury-related contracts, there is an increased risk of contract fraud 

across all Treasury bureaus and programs. OI initiated a program of providing integrity briefs to 

contract personnel notifying them of the responsibilities to report fraud, waste, and abuse within 

U.S. Treasury contracts and programs. OI works with the U.S. Department of Justice to 

prosecute False Claims Acts in federal court to recover funds through civil penalties. 

Additionally, OI conducts criminal investigations to prosecute contracts engaging in fraudulent 

activity, such as kickbacks, product substitution, bid manipulation, and many other types of 

contract fraud. OI continues to work allegations directly impacting the American Reinvestment 

and Recovery Act and the Gulf Coast Restoration Trust Fund. 
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OI directs investigative efforts toward those that subvert bank examination processes and/or 

perpetrate fraud impacting the Bank Secrecy Act oversight responsibilities of Treasury bureaus, 

subsequently defrauding the nation’s financial infrastructure, and eroding the public’s trust. 

In addition to the grant programs listed above, the OI has seen a noted increase in fraud 

impacting other significant Treasury programs and operations, including leaks of Treasury 

information, as well as fraud impacting the Treasury payment processing service operated by the 

Bureau of Fiscal Service. OI remains committed to investigating benefit, improper payment and 

other monetary fraud associated with the programs and operations of the Treasury Department. 

Additionally, the OI remains committed to investigating benefit, improper payment and other 

monetary fraud associated with the programs and operations of the Treasury Department. 

Description of Performance

In FY 2020 OI met the Investigative Performance Measure target (Target – 80 percent; Actual – 

91 percent), opened 76 new investigations and closed 107 investigations. The OIG also referred 

13 investigations that substantiated administrative violations against a Treasury employee to the 

appropriate regulated bureau for action. In addition, the OIG referred 119 investigations for 

criminal prosecution and 3 investigations for civil prosecution. In FY 2020 OI charged and/or 

indicted 41 subjects. Ongoing investigations resulted in 23 subjects sentenced which resulted in 

fines, seizures, restitution, penalties, and settlements of more than $15.6 million. 

Since the inception of the CARES Act in March 2020, the OI has increased its caseload by 25 

percent for investigations that involve potential misappropriated funds of state, local, and tribal 

governments. 

OI continues to support frequent congressional inquiries, sensitive investigative requests from 

the Council of the Inspectors General on Integrity and Efficiency, and annual peer reviews of 

other Offices of Inspector General, thus ensuring a high level of professionalism within the 

Inspector General community. 

The Investigative Performance Measure is a percentage of all cases closed by OI during the 

fiscal year referred to Department Bureaus for administrative action or for criminal or civil 

prosecution by Federal or local prosecutors. The goal for OI is that at least 80 percent of closed 

cases meet the aforementioned criteria. Meeting or exceeding this goal demonstrates that OI is 

responsive to allegations and complaints referred to the office and when these referrals require 

investigation, the cases are timely, thoroughly and accurately reported to assist the Department in 

maintaining the integrity of its programs and operations, subsequently ferreting out fraud, waste, 

and abuse. The office is working to meet or exceed this measure in both FY 2021 and FY 2022. 

C – Changes in Performance Measures 

OIG has no changes in performance measures. 

D –Evidence Building Activity 

The OIG will be adding a data analysis function to its audits to use data to assess risk and feed 

decisions about programs requiring further evaluation within Treasury. The auditors within the 
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Office of Audit will use this information to assess individual programs and to assess risk on a 

Treasury-wide level. Additionally, refer to the Executive Summary for a discussion of Treasurywide evidence-building functions.

Section III – Additional Information 

A – Summary of Capital Investments 

The OIG has no capital investments. Capital investments that support the OIG are included in the 

Departmental Offices plan. 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx