Department of the Treasury – Budget in Brief 

Office of Inspector General 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018 

Budget Activity Enacted Annualized CR Request $ Change % Change 

Audit $28,304 $27,219 $26,266 ($953) -3.50% 

Investigations $7,112 $8,130 $7,846 ($284) -3.49% 

Subtotal, OIG $35,416 $35,349 $34,112 ($1,237) -3.50% 

Offsetting Collections - Reimbursables $6,726 $10,500 $10,000 ($500) -4.76% 

Total Program Operating Level $42,142 $45,849 $44,112 ($1,737) -3.79% 

Direct FTE 164 194 175 (19) -9.79% 

Reimbursable FTE 6 19 5 (14) -73.68% 

Total FTE 170 213 180 (33) -15.49% 

Note: FY 2016 FTE and Other Resources are Actual

Summary 

The FY 2018 request for $34,112,000 for the 

OIG will be used to fund critical audit, 

investigative, and mission support activities to 

meet the requirements of the Inspector General 

Act of 1978, and other statutes including, but 

not limited: to the Cybersecurity Act of 2015; 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank); 

Federal Information Security Modernization 

Act (FISMA); Government Management 

Reform Act; Improper Payments Elimination 

and Recovery Act; Digital Accountability and 

Transparency Act of 2014 (DATA Act); 

Federal Deposit Insurance Act; Small Business 

Jobs Act of 2010; and Resources and 

Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the 

Gulf Coast States Act of 2012 (RESTORE 

Act). Specific mandates include audits of the 

Department’s financial statements, the 

Department’s compliance with FISMA, the 

Department’s actions in implementing cyber 

security information sharing, failed insured 

depositary institutions regulated by Treasury, 

and spending data submitted by the 

Department to USASpending.gov. With the 

resources available after mandated 

requirements are met, the OIG will conduct 

audits of the Department’s highest risk 

programs and operations, and respond to 

stakeholder requests for specific work as 

appropriate. Some of the Department’s 

highest risk programs and operations include: 

(1) Cyber Threats, (2) Efforts to Promote 

Spending Transparency and to Prevent and 

Detect Improper Payments, (3) Anti-Money 

Laundering and Terrorist Financing/Bank 

Secrecy Act Enforcement, (4) Management of 

Treasury’s Authorities Intended to Support 

and Improve the Economy, including 

administration of the Gulf Coast Restoration 

Trust Fund. 

In support of Treasury’s mission, the OIG 

established the following strategic goals. 

 Promote the integrity, efficiency, and 

effectiveness of programs and operations 

across Treasury OIG’s jurisdictional 

boundaries through audits and 

investigations 

 Proactively support and strengthen the 

ability of programs across Treasury OIG’s 

jurisdictional boundaries to identify 

challenges and manage risks 

 Fully and currently inform stakeholders of 

Treasury OIG findings, recommendations, 

investigative results, and priorities 

 Enhance, support, and sustain a workforce 

and strengthen internal operations to 
Department of the Treasury – Budget in Brief 

achieve the Treasury OIG mission, vision, 

and strategic goals 

OIG FY 2018 Budget Highlights 

Dollars in Thousands

Office of Inspector General FTE Amount

FY 2017 Annualized CR 194 $35,349

Changes to Base:

Maintaining Current Levels (MCLs): - $729

Pay-Raise - $401

Pay Annualization - $147

Non-Pay - $180

Subtotal Changes to Base - $729

Total FY 2018 Base 194 $36,078

Program Changes:

Program Decreases: - ($1,966)

Reduce Audit Staffing -19 (1,966)

Total FY 2018 Request 175 $34,112

FY 2018 Budget Adjustments 

Adjustments to Request 

Maintaining Current Level (MCLs) 

Pay-Raise +$401,000/ +0 FTE 

Funds are requested for the proposed January 

2018 pay-raise. 

Pay Annualization +$147,000 / +0 FTE 

Funds are requested for annualization of the 

January 2017 pay-raise. 

Non-Pay +$180,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Program Decreases 

Reduce Audit Staffing -$1,966,000 / -19 FTE 

Reduce Audit Staffing. 

Explanation of Budget Activities 

Audit 26,266,000 from direct 

appropriations, $10,000,000 from 

reimbursable resources 

The Office of Audit conducts audits to ensure 

the accountability of resources, protect 

information, and provide recommendations for 

improving the economy, efficiency, 

effectiveness, and integrity of Treasury 

programs and operations under its jurisdiction, 

which include those of Treasury and the Gulf 

Coast Ecosystem Restoration Council 

(Council). The requested funding for FY 2018 

is necessary to perform mandated work and 

maintain an appropriate level of oversight of 

Treasury and Council programs and operations 

consistent with its responsibilities under the 

Inspector General Act. The OIG also responds 

to requests by Treasury and Council officials 

and the Congress for specific work. 

Reimbursable funding supports agreements for 

contracted audits as well as oversight of the 

Small Business Lending Fund (SBLF) 

programs. SBLF program oversight and 

expected performance is detailed in the SBLF 

Program Office budget submission. 

Investigations $7,846,000 from direct 

appropriations 

The Office of Investigations (OI) prevents, 

detects, and investigates complaints of fraud, 

waste, and abuse. This includes the detection 

and prevention or deterrence of employee 

misconduct and fraud, or related financial 

crimes within or directed against Treasury. 

The Office of Investigations 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 the increased risk of the Recovery Act 

grant programs for low-income housing and 

specific energy properties, the Office of 

Investigations faces greater challenges and 

anticipated increases in grant fraud. 

Investigative efforts are being directed towards 

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 Office of Investigations has seen a noted 

increase in fraud impacting other significant 
Department of the Treasury – Budget in Brief 

Treasury programs and operations including 

fraud impacting the myRA program, Treasury 

Direct program, and the Treasury payment 

processing service operated by the Bureau of 

Fiscal Service. 

The OIG has substantially increased its focus 

on the investigation of Treasury related 

improper payment fraud and scams targeting 

U.S. citizens where Treasury employees are 

being impersonated and Treasury seals are 

being used to defraud victims. 

Legislative Proposals 

The OIG has no legislative proposals. 

OIG Performance Highlights 

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measure Actual Actual Actual Target Target Trend

Audit Number of Completed Audit 

Products 75.0 86.0 98.0 86.0 74.0

Audit

Percent of Statutory Audits 

Completed by the Required 

Date

100.0 100.0 100.0 100.0 100.0

Investigations

Percentage (%) of All Cases 

Closed During Fiscal Year that 

were Referred for Criminal/Civil 

Prosecution or Treasury 

Administrative Action

84.0 87.0 84.0 80.0 80.0

Key: DISC - Discontinued, B – Baseline 

Description of Performance 

The Office plans to complete 86 audit products 

in FY 2017 and 74 in FY 2018. The reduced 

number of audit products in FY 2018 is the 

result of a significant rent increase in FY 2018 

that will consume resources that would 

otherwise be used to fully staff the Office of 

Audit. In FY 2016, the Office of Audit 

completed 98 audit products, exceeding the 

planned target of 77. In FY 2016, the Office 

met its mandated audit requirements and 

identified $1.8 million in monetary benefits. 

In keeping with the OIG’s strategy to maintain 

a highly skilled and motivated workforce, the 

OIG plans and executes a meaningful body of 

work designed to help ensure the integrity, 

efficiency, and effectiveness of programs and 

operations across OIG’s jurisdiction while 

looking for opportunities to improve them. 

In FY 2016 the OIG exceeded the 

Investigative Performance Measure target 

(Target-80 percent; Actual 84 percent) opened 

144 new investigations, and closed 72 

investigations. The OIG also referred 43 

investigations that substantiated administrative 

violations against a Treasury employee to the 

appropriate regulated bureau for action. In 

addition, the OIG referred 159 investigations 

for criminal prosecution and 46 investigations 

for civil prosecution. The OIG received 

investigative referrals regarding potential 

criminal misconduct that occurred prior to or 

during bank failures, and has worked criminal 

investigations with the Federal Deposit 

Insurance Corporation Office of Inspector 

General and the OIG Office of Audit regarding 

potential prosecution of acts which may have 

contributed to the bank failures.