Office of Inspector General

FY 2014

President’s Budget 
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Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 – Appropriations Detail Table .............................................................................................. 3

1B – Vision, Priorities and Context............................................................................................ 3

Section 2 – Budget Adjustments and Appropriation Language............................................... 8

2.1 – Budget Adjustments Table................................................................................................. 8

2A – Budget Increases and Decreases Description..................................................................... 8

2.2 – Operating Levels Table.................................................................................................... 10

2B – Appropriations Language and Explanation of Changes................................................... 11

2C – Legislative Proposals........................................................................................................ 11

Section 3 – Budget and Performance Plan ............................................................................... 12

3A – Audit................................................................................................................................. 12

3.1.1 – Audit Budget and Performance Plan............................................................................. 13

3B – Investigations ................................................................................................................... 13

3.1.2 – Investigations Budget and Performance Plan ............................................................... 14

Section 4 – Supplemental Information...................................................................................... 15

4A – Summary of Capital Investments..................................................................................... 15
Section 1 – Purpose

1A – Mission Statement

To promote the integrity, efficiency, and effectiveness of Treasury programs and operations. 

1.1 – Appropriations Detail Table

Dollars in Thousands

 FY 2012 FY 2013 FY 2014 FY 2012 to FY 2014

Office of Inspector General Enacted Annualized Request $ Change % Change

Resources 

 CR Rate 

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Audit 142 22,823 142 22,963 161 24,385 19 1,562 13.38% 6.84%

Investigations 31 6,818 30 6,859 33 6,966 2 148 6.45% 2.17%

Subtotal New Appropriated Resources 173 $29,641 172 $29,822 194 $31,351 21 $1,710 12.14% 5.77%

Other Resources:

Reimbursables 19 13,200 19 15,400 19 14,500 0 1,300 0.00% 9.85%

Subtotal Other Resources 19 $13,200 19 $15,400 19 $14,500 0 $1,300 0.00% 9.85%

Total Budgetary Resources 192 $42,841 191 $45,222 213 $45,851 21 $3,010 10.94% 7.03%

1B – Vision, Priorities and Context

OIG performs independent, objective reviews of Treasury programs and operations, except for 

those of the Internal Revenue Service (IRS) and the Troubled Asset Relief Program (TARP), and 

keeps the Secretary of the Treasury and Congress fully informed of problems, deficiencies, and 

the need for corrective action. The Treasury Inspector General for Tax Administration performs 

oversight related to the IRS. A Special Inspector General and the Government Accountability 

Office perform oversight related to TARP.

OIG has five components: (1) Office of Audit, (2) Office of Investigations, (3) Office of Small 

Business Lending Fund (SBLF) Program Oversight, (4) Office of Counsel, and (5) Office of 

Management. OIG is headquartered in Washington, D.C., and has an audit office in Boston, 

Massachusetts. 

-The Office of Audit, under the leadership of the Assistant Inspector General for Audit, 

performs and supervises audits, attestation engagements, and evaluations. The Assistant 

Inspector General for Audit has two deputies. One is primarily responsible for performance 

audits, and the other is primarily responsible for financial management, information technology 

(IT), and grants and other financial assistance audits. 

-The Office of Investigations, under the leadership of the Assistant Inspector General for 

Investigations, performs investigations and conducts initiatives to detect and prevent fraud, 

waste, and abuse in Treasury programs and operations under our jurisdiction. It also manages the 

Treasury OIG Hotline to facilitate reporting of allegations involving Treasury programs and 

activities. 

-The Office of SBLF Program Oversight, under the leadership of a Special Deputy 

Inspector General, conducts, supervises, and coordinates audits and investigations of SBLF and 

the State Small Business Credit Initiative (SSBCI). 
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-The Office of Counsel, under the leadership of the Counsel to the Inspector General, 

provides legal advice to the Inspector General and all OIG components. The office represents 

the OIG in all legal proceedings and provides a variety of legal services including (1) processing 

all Freedom of Information Act and other requests for information about government employees; 

(2) conducting ethics training; (3) ensuring compliance with financial disclosure requirements; 

(4) reviewing proposed legislation and regulations; (5) reviewing administrative subpoena 

requests; and (6) preparing for the Inspector General’s signature, cease and desist letters to be 

sent to persons and entities misusing the Treasury seal and name. 

-The Office of Management, under the leadership of the Assistant Inspector General for 

Management, provides services to maintain the OIG administrative infrastructure. 

Through it audit and investigative function, the OIG supports all of Treasury’s strategic goals, 

but primarily supports Treasury’s strategic Goal #5: “Manage the Government’s Finances in a 

Fiscally Responsible Manner.” OIG own Strategic Goals are:

1. Promote the integrity and effectiveness of Treasury programs and operations through audits 

and investigations;

2. Proactively support and strengthen the Department’s ability to identify and manage 

challenges, both today and in the future;

3. Fully and currently inform stakeholders of Treasury OIG findings, recommendations, 

investigative results, and priorities related to Treasury programs and operations; and 

4. Enhance, support, and sustain a workforce and strengthen internal operations to achieve the 

Treasury OIG mission, vision, and strategic goals.

The FY 2014 budget request will be used to fund critical audit, investigative, and support 

activities to meet the requirements of the Inspector General Act of 1978, the Dodd-Frank Wall 

Street Reform and Consumer Protection Act (Dodd-Frank Act), the Federal Information Security 

Management Act (FISMA), the Government Management Reform Act, the Federal Deposit 

Insurance Act , the Small Business Jobs Act of 2010, the Improper Payments Elimination and 

Recovery Act (IPERA), and the American Recovery and Reinvestment Act of 2009 (Recovery 

Act), among others. Specific mandates require that we audit the Department’s financial 

statements, the Department’s implementation of FISMA, the Department’s implementation of 

IPERA, and failures of Treasury-regulated banks. Recently, under the Resources and Ecosystems 

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

2012 (RESTORE Act), OIG is authorized to conduct, supervise, and coordinate audits and 

investigations of projects, programs, and activities of the Gulf Coast Restoration Trust Fund

(Trust Fund). 

With the resources available after mandated requirements are met, the OIG will conduct audits 

and investigations of the Department’s highest risk programs and operations, as identified in the 

OIG annual plan and as communicated through a memorandum from the Inspector General to 

Secretary Geithner on October 25, 2012. These include: 

 Transformation of Financial Regulation (Repeat Challenge)

 Management of Treasury’s Authorities Intended to Support and Improve the Economy 

(Repeat Challenge)
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 Anti-Money Laundering and Terrorist Financing/Bank Secrecy Act Enforcement (Repeat 

Challenge)

 Gulf Coast Restoration Trust Fund Administration (New Challenge)

Programs that Support the Transformation of Financial Regulation 

The Dodd-Frank Wall Street Reform and Consumer Protection Act (PL 111-203), created the 

Council of Inspectors General on Financial Oversight (CIGFO). CIGFO is chaired by the 

Treasury Inspector General and comprised of nine major financial regulators which are required 

to meet quarterly to share information on financial oversight, and evaluate the Financial Stability 

Oversight Council’s (FSOC) activities through working groups. In this regard, CIGFO is an 

important source of independent and unbiased analysis of FSOC. In FY 2012, CIGFO conveyed 

its first working group, which issued a report, Audit of the Financial Stability Oversight 

Council’s Control’s over Non-public Information. In FY 2013, CIGFO conveyed its second 

working group which is reviewing FSOC and member agencies processes for designating 

financial market utilities as systemically important and therefore subject to enhanced regulation 

and supervision. In the future, CIGFO will continue to evaluate FSOC’s activities. 

The Dodd-Frank Act also mandates Treasury OIG work jointly with the Federal Reserve Board 

(FRB) OIG and Federal Deposit Insurance Corporation (FDIC) OIG to review and report every 6

months on the transfer of Office of Thrift Supervision (OTS) functions to other federal banking 

agencies. This work is anticipated to continue into FY 2014.

Apart from CIGFO, the OIG will provide oversight for four important Treasury offices 

established by the Dodd-Frank Act– the Office of Financial Research, the Federal Insurance 

Office, and the Offices of Minority and Women Inclusion within Departmental Offices and 

OCC. 

The wave of bank failures that began in calendar year 2007 underscores the need for ongoing and 

proactive oversight in the banking area. Under the Federal Deposit Insurance Act, the OIG is 

required to review failures of Treasury-regulated banks. These reviews help identify and correct 

weaknesses in the supervisory process, but they are nevertheless a retrospective look at the 

quality of bank supervision. While the number of failed banks began to diminish considerably in 

2011, a trend that continued in 2012, there are still hundreds of banks on the problem bank list 

and the Dodd-Frank Act threshold for requiring material loss reviews decreases from $150 

million to $50 million in 2014.

Management of Treasury’s Authorities Intended to Support and Improve the Economy 

The Recovery Act provided Treasury with approximately $22 billion in non-IRS funding for 

low-income housing projects and specified energy properties for which the OIG must provide 

oversight. Funds through the Recovery Act are available through FY 2013 and beyond for the 

specified energy properties program and will require continued oversight. The OIG will 

continue this work at Departmental Offices to determine whether the funds were spent as 

intended. The Treasury OIG is providing the only monitoring presence in the field by Treasury 

for this program. The OIG will also need to continue its oversight of the low-income housing 

program as funded projects are being brought on line.
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Another area that requires vigorous oversight by the OIG is Treasury’s responsibilities under the 

Housing and Economic Recovery Act of 2008 (HERA). Under HERA, Treasury continued to 

support the financial solvency of the Federal National Mortgage Association (Fannie Mae) and 

the Federal Home Loan Mortgage Corporation (Freddie Mac) which are under the 

conservatorship of the Federal Housing Finance Agency. As of June 2012, Treasury invested a 

total of $187 billion in the two entities to cover their losses and maintain a positive net worth. 

Although Fannie Mae and Freddie Mac reported a positive net worth in the first three quarters of 

2012, the future of both entities is still in question and prolonged assistance may be required. 

During FY 2014, audit work is planned in the Preferred Stock Purchase Agreement Program, the 

program through which Treasury provides its financial support to Fannie Mae and Freddie Mac. 

The OIG’s HERA oversight work in FY 2014 also includes the Housing Finance Agency (HFA) 

Initiative Programs which consist of the New Issue Bond Program ($15.3 billion) and the 

Temporary Credit and Liquidity Program ($4.5 billion in guaranteed HFA bonds). These 

programs include participation of over 90 state and local HFAs in an effort to support mortgage 

financing. 

Programs to Combat Anti-Money Laundering and Terrorist Financing/Bank Secrecy Act 

Enforcement 

Ensuring criminals and terrorists do not use our financial networks to sustain their operations 

and/or launch attacks against the U.S. continues to be a challenge. Treasury’s Office of 

Terrorism and Financial Intelligence is dedicated to disrupting the ability of terrorist 

organizations to fund their operations. This office brings together intelligence gathering and 

analysis, economic sanctions, international cooperation, and private-sector cooperation to 

identify donors, financiers, and facilitators supporting terrorist organizations, and disrupt their 

ability to fund them. Enhancing the transparency of the financial system is one of the 

cornerstones of this effort. Treasury carries out its responsibilities to enhance financial 

transparency through the Bank Secrecy Act (BSA) and USA Patriot Act. The Financial Crimes 

Enforcement Network (FinCEN) is responsible for administering BSA. Given the criticality of 

this management challenge to the Department’s mission, the OIG continues to consider antimoney laundering and combating terrorist financing as inherently high-risk, and an area that 

demands a major focus of our self-directed resources.

Gulf Coast Restoration Trust Fund Administration

In response to the Deepwater Horizon oil spill, Congress established within Treasury the Gulf 

Coast Restoration Trust Fund and requires Treasury to deposit in the Trust Fund 80 percent of 

administrative and civil penalties paid by responsible parties which will be distributed for 

eligible activities affecting the Gulf Coast states (Alabama, Florida, Louisiana, Mississippi, and 

Texas). Treasury, in consultation with the Departments of the Interior and Commerce, is 

required to develop policies and procedures to administer the Trust Fund by early January 2013.

In the Investigations operational area, OIG has established four priorities for FY 2014.

Criminal and Serious Employee Misconduct

The OIG’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 
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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 Funds

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

crimes involving Treasury contracts, grants, loan guarantees, and federal funds. Such allegations 

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

or services to the Department. OI 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 involve issuing licenses, 

providing benefits, and exercising oversight of U.S. financial institutions.

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 in order to protect those involved.

Key Accomplishments and Challenges

In FY 2012, the Office of Audit completed a total of 91 audit products, which exceeded its 

performance plan. The Office also completed all mandated audit products within required 

timeframes. The audit products identified a number of areas where the Department needs to 

strengthen its controls. The Office plans to complete 70 audit products in FY 2013 and 75 audit 

products in FY 2014. In FY 2012, the Office of Investigations exceeded the investigative 

performance measure, and expects to continue this performance in FYs 2013 and 2014. 

Treasury is a complex agency with many programs and operations that are vital to the Nation’s 

economic and national security. Many of these programs and operations are thinly resourced and 

the OIG is often the only Treasury presence providing on-site verification and quality control.

The implementation of new authorities and regulatory changes brought about by major 

legislation to address the economic crisis and other events, such as the Dodd-Frank Act and the 

RESTORE Act, continue to evolve. The OIG must remain vigilant and have the capacity to 

provide independent assessments of the Department’s activities to stand up and bring to a mature 

state new offices and programs. The OIG must also be able to respond in an expedient and 

effective manner to unanticipated and emerging issues of significant impact to the Department. 

Office of Inspector General’s FY 2014 Budget Request

In accordance with the Inspector General Act, the Treasury Inspector General submits the 

following information relating to the OIG’s requested budget for FY 2014:

 The aggregate budget request for the operations of the OIG is $45,851,000 comprised of 

$31,351,000 from direct appropriation, and $14,500,000 from reimbursable collections,

 The portion of this amount needed for OIG training is $500,000, and

 The portion of this amount needed to support the Council of Inspectors General on Integrity 

and Efficiency (CIGIE) is $60,000.

The amount requested for training satisfies all OIG training needs for fiscal year 2014.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Office of Inspector General FTE Amount

FY 2012 Enacted 173 $29,641

FY 2013 Annualized CR Rate 172 $29,822

Changes to Base:

Adjustment to Request - ($1,229)

Non-Recur CR Increase - ($181)

Non-Recur Workload Management & Decrease in Material Loss 

Review from FY 2013 - ($1,048)

Maintaining Current Levels (MCLs): - $283

Pay-Raise - $196

Non-Pay - $87

Efficiency Savings: - ($325)

Program Efficiencies - ($325)

Subtotal Changes to Base - ($1,271)

Total FY 2014 Base 172 $28,551

Program Changes:

Program Increases: 22 $2,800

Gulf Coast Restoration Trust Fund Oversight 22 $2,800

Total FY 2014 Request 194 $31,351

2A – Budget Increases and Decreases Description

Adjustment to Request ..............................................................................-$1,229,000 / +0 FTE

Non-Recur CR Increase -$181,000 / +0 FTE 

The across-the-board 0.612 percent increase provided in the CR through March 27, 2013 is nonrecurred.

Non-Recur Workload Management & Decrease in Material Loss Review from FY 2013 -

$1,048,000 / +0 FTE 

Decreased workload related to MLRs due to economic improvement and decreasing bank failure 

rate.

Maintaining Current Levels (MCLs) .........................................................+$283,000 / +0 FTE

Pay-Raise +$196,000 / +0 FTE 

The President's Budget proposes a 1 percent pay-raise for federal employees in 2014.

Non-Pay +$87,000 / +0 FTE 

Funds are requested for inflation adjustments in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment.

Efficiency Savings .........................................................................................-$325,000 / +0 FTE

Program Efficiencies -$325,000 / +0 FTE 

General operational efficiencies due to careful and aggressive review of all expenditures and 

imposition of reductions where possible. OIG will continue to very tightly and conservatively 

manage attrition, since the OIG budget is 80 percent personnel costs, there is not significant 
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discretionary spending to reduce without impacting people and performance. OIG will constrain 

spending to the minimum necessary to accomplish the savings. 

Program Increases ..................................................................................+$2,800,000 / +22 FTE

Gulf Coast Restoration Trust Fund Oversight +$2,800,000 / +22 FTE 

The RESTORE Act authorizes the Treasury Office of Inspector General (OIG) to conduct, 

supervise, and coordinate audits and investigations of projects, programs, and activities funded 

under the act. OIG reviewed the RESTORE Act and based on experience determined that

additional resources will be required to support an additional Audit Directorate of 19 FTE, one 

additional investigative FTE for the Office of Investigations along with two support FTE to 

provide required audit oversight and coordination for the Trust Fund projects, programs, and 

activities.
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2.2 – Operating Levels Table

Dollars in Thousands

Office of Inspector General FY 2012 FY 2013 FY 2014

 Actual Annualized Request

Object Classification CR Rate 

11.1 - Full-time permanent 16,492 17,300 20,250

11.3 - Other than full-time permanent 297 105 305

11.5 - Other personnel compensation 856 519 400

11.8 - Special personal services payments 650 1,010 1,025

11.9 - Personnel Compensation (Total) 18,295 18,934 21,980

12.0 - Personnel benefits 5,608 5,119 6,100

13.0 - Benefits for former personnel 9 0 0

Total Personnel and Compensation Benefits $23,912 $24,053 $28,080

21.0 - Travel and transportation of persons 1,041 600 550

23.1 - Rental payments to GSA 2,011 1,902 1,927

23.2 - Rental payments to others 0 0 750

23.3 - Communication, utilities, and misc charges 385 750 834

24.0 - Printing and reproduction 1 12 20

25.2 - Other services 818 16,300 11,858

25.3 - Other purchases of goods & serv frm Govt accounts 10,836 1,050 1,334

25.6 - Medical care 33 45 50

25.7 - Operation and maintenance of equip 58 210 215

26.0 - Supplies and materials 152 150 102

31.0 - Equipment 526 150 131

Total Non-Personnel 15,861 21,169 17,771

Total Budgetary Resources $39,773 $45,222 $45,851

Budget Activities:

Audit 36,023 38,363 38,885

Investigations 6,818 6,859 6,966

Total Budgetary Resources $42,841 $45,222 $45,851

FTE 192 191 213

This table includes all available resources, including annual and available multi-year appropriations, reimbursable resources,

offsetting collections and user fees.
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2B – 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, as amended, including hire of passenger motor vehicles, 

$31,351,000; 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.

2C – Legislative Proposals

The OIG has no legislative proposals.
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Section 3 – Budget and Performance Plan

3A – Audit

($24,385,000 from direct appropriations, and $14,500,000 from reimbursable resources): 

The Office of Audit conducts audits aimed 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. The requested funding 

for FY 2014 is necessary to perform mandated work and maintain an appropriate level of 

oversight of Treasury programs and operations consistent with its responsibilities under the 

Inspector General Act. As a newer responsibility, in FY 2014 the OIG must also provide 

oversight of Gulf Coast Restoration Trust Fund programs, projects and activities. Reimbursable 

funding supports agreements for contract audits of other Treasury bureaus, as well as oversight 

of the Small Business Lending Fund (SBLF) and the State Small Business Credit Initiative 

(SSBCI) programs. SBLF/SSBCI program oversight and expected performance is detailed in the 

SBLF/SSBCI Program Office budget submission.

Description of Performance:

In FY 2012, the Office of Audit completed a total of 91 audit products which exceeded the 

planned target of 70 audit products for the year due to the continuing impact of an unprecedented 

number of mandated failed bank reviews, many of which were either started in a previous fiscal 

year and completed in FY 2012 or were limited in scope. The Office plans to complete 70 audit 

products annually in FY 2013 and 75 audit products in FY 2014 which reflects productivity 

goals under more realistic circumstances and takes into consideration the start-up of oversight 

work for the Gulf Coast Restoration Trust Fund. In FY 2012, the Office met its mandated audit 

requirements. Audit products include audit reports, evaluation reports, the Inspector General’s 

Semi-Annual Report to the Congress, and the Inspector General’s Annual Memorandum to the 

Secretary on the most significant management and performance challenges facing the 

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

Congress on a variety of subjects, with the stand-up of the Consumer Financial Protection 

Bureau and Treasury’s contingency planning during the 2011 debt limit crisis being recent 

examples. By completing independent and timely assessments of Treasury’s programs and 

operations under jurisdiction, OIG supports its mission of promoting efficiency, effectiveness, 

and integrity of Treasury programs and operations. The recommendations for improvement in 

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

Treasury Department in achieving four of its five strategic goals (OIG also incidentally supports

Treasury’s strategic goal of “Pursue Comprehensive Tax and Fiscal Reform”). It should be 

noted that a number of these assessments are mandated in law with specific reporting deadlines 

so that decision makers have timely information.

The Office of Inspector General has a mature audit operation that can well estimate, based on 

historical performance, an accurate prediction of future performance. That said, it has over timedemonstrated agility at redirecting resources as necessary to address new challenges and 

mandates of its stakeholders.
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OIG’s strategy is to continue to maintain a highly skilled and motivated workforce. One way this 

is done is through planning and executing a meaningful body of work designed to help ensure the 

integrity and effectiveness of Treasury programs and operations while looking for opportunities 

to improve them.

3.1.1 – Audit Budget and Performance Plan

Dollars in Thousands

Audit Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Enacted Enacted Enacted Annualized 

CR Rate

Request

 Appropriated Resources $11,561 $12,512 $20,116 $19,721 $22,435 $22,823 $22,963 $24,385

 Reimbursable Resources $1,795 $6,052 $7,381 $16,000 $8,000 $13,200 $15,400 $14,500

Budget Activity Total $13,356 $18,564 $27,497 $35,721 $30,435 $36,023 $38,363 $38,885

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

Number of Completed Audit 

Products 

64 64 68 68 126 91 70 75

Percent of Statutory Audits 

Completed by the Required 

Date 

100.0 100.0 100.0 50.0 100.0 100.0 100.0 100.0

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

3B – Investigations

($6,966,000 from direct appropriations): 

The Office of Investigations 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 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, subsequently defrauding the system and eroding the public’s trust.

Additionally, the OI remains committed to investigating those that threaten, intimidate, or harass 

Treasury employees in the performance of their duties. These types of complaints are received 

frequently given the ongoing economic problems. 

Description of Performance:

In FY 2012, the OIG exceeded the Investigative Performance Measure target, opened 129 new 

investigations, and closed 85 investigations. The OIG also referred 100 percent of investigations 

that substantiated administrative violations against a Treasury employee to the appropriate 
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regulated bureau for action. In addition, the OIG referred 109 investigations for criminal 

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 

FDIC Office of Inspector General (FDIC OIG) and the OIG Office of Audit regarding potential 

prosecution of acts which may have contributed to the bank failures. The Investigative 

performance measure is 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 OIG is that at least 80 percent of closed cases meet the 

aforementioned criteria of closed cases in this fiscal year. Meeting or exceeding this goal 

demonstrates that OI is responsive to allegations and complaints referred to OI and that 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. This goal were developed for use beginning in FY 2012 to 

achieve OIG’s goal of positively impacting Treasury’s strategic goals and providing a more 

meaningful measurement of investigative performance. 

The target for referral rates in FY 2012 was set at 80 percent, which was exceeded with a 90 

percent referral rate. Achieving and exceeding this goal was due to policies and procedures in 

place designed to encourage and motivate agents, while holding them accountable for timely, 

thorough, and accurate investigations reporting. Through OI’s case management system, cases 

were tracked for timely investigative steps, ensuring that documentation is complete, thorough, 

and accurately reported and enabling managers to monitor and maintain investigative 

momentum. In addition, agents were held accountable to these performance measures in their 

annual performance plans, managers were goal oriented and held accountable for the 

performance of their subordinates. Additionally, OIG’s success can also be attributed to 

outreach to the Department’s bureaus, other law enforcement agencies, and continued 

enhancement of its investigative resources. The same strategies and means will be implemented 

to achieve FY 2013 and FY 2014 targets.

3.1.2 – Investigations Budget and Performance Plan

Dollars in Thousands

Investigations Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Enacted Enacted Enacted Annualized 

CR Rate

Request

 Appropriated Resources $5,292 $5,897 $6,009 $6,831 $6,702 $6,818 $6,859 $6,966

Budget Activity Total $5,292 $5,897 $6,009 $6,831 $6,702 $6,818 $6,859 $6,966

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

Percentage (%) of All Cases 

Closed During Fiscal Year that 

were Referred for Criminal/Civil 

Prosecution or Treasury 

Administrative Action

N/A N/A 100.0 93.0 85.0 91.0 80.0 80.0

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline
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Section 4 – Supplemental Information

4A – Summary of Capital Investments

The OIG does not have any IT or Non-IT Capital Investments.

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed/downloaded here: 

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx