Office of Inspector General 

Mission Statement 

To: (1) conduct and supervise audits and investigations of Treasury programs and 

operations; (2) provide leadership and coordination and recommend policies for activities 

designed to (a) promote economy, efficiency, and effectiveness in the administration of 

Treasury programs and operations, and (b) prevent and detect fraud, waste, and abuse in 

Treasury programs and operations; and (3) keep the Secretary and the Congress fully and 

currently informed about problems, abuses, and deficiencies in Treasury programs and 

operations. 

Program Summary by Budget Activity 

Dollars in Thousands 

Appropriation FY 2007 FY 2008 FY 2009

Salaries and Expenses Enacted Enacted Request $ Change % Change 

Audit $11,639 $12,658 $13,280 $622 4.91%

Investigations 5,318 5,792 6,076 284 4.90%

Total Appropriated Resources $16,957 $18,450 $19,356 $906 4.91%

Total FTE 111 112 115 3 2.68%

FY 2009 Priorities 

Ensure the effectiveness and integrity of Treasury programs by: 

• Completing 100 percent of mandated audits on time; 

• Focusing on programs to combat terrorist financing and money laundering, the 

security of Treasury’s information systems, and Treasury’s management of capital 

investments; 

• Addressing requirements related to financial statements, information security and 

failed financial institutions; 

• Investigating allegations of fraud, waste, abuse, and employee misconduct; and 

• Conducting proactive efforts to detect, deter and investigate electronic crimes and 

threats to Treasury’s physical and cyber infrastructure. 
Table of Contents 

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

1A – Description of Bureau Vision and Priorities.......................................................... 1 

1B – Program History and Future Outlook..................................................................... 2 

Section 2 – Budget Adjustments and Appropriation Language................................... 3 

2.1 – Budget Adjustments Table..................................................................................... 3 

2A – Budget Increases and Decreases Description ........................................................ 3 

2.2 – Operating Levels Table.......................................................................................... 4 

2.3 – Appropriations Detail Table .................................................................................. 5 

2B – Appropriations Language and Explanation of Changes......................................... 5 

2C – Legislative Proposals ............................................................................................. 5 

Section 3 – Budget and Performance Plan ..................................................................... 6 

3.1 – Budget by Strategic Outcome ................................................................................ 6 

3A – Audit ..................................................................................................................... 6 

3.2.1 – Audit Budget and Performance Plan .................................................................. 6 

3B – Investigations ........................................................................................................ 7 

3.2.2 – Investigations Budget and Performance Plan ..................................................... 7 

Section 4 – Supporting Materials.................................................................................... 9 

4A – Human Capital Strategy Description ..................................................................... 9 

4.1 – Summary of IT Resources Table ......................................................................... 10 

4B – Information Technology Strategy ........................................................................ 11 

4.2 – PART Evaluation Table....................................................................................... 12 
Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The Fiscal Year (FY) 2009 President’s Budget request for the Office of Inspector General 

(OIG) will be used to provide critical audit and investigative services, ensuring the 

effectiveness and integrity of Treasury’s programs and operations. OIG will continue, as 

the first audit priority, to address mandated requirements related to financial statements, 

information security, and as necessary, failed financial institutions resulting in material 

losses (more than $25 million) to the deposit insurance funds. While there are a number 

of critical areas where the OIG will provide audit oversight, highlights of three of the 

Department’s most serious management challenges where OIG will focus its resources 

include: 

• Improving regulatory gaps in the detection of and/or timely enforcement action 

against financial institutions for Bank Secrecy Act (BSA) and related violations, and 

strengthening Office of Foreign Assets Control (OFAC) compliance examinations for 

the institutions examined by the Office of the Comptroller of the Currency (OCC) and 

the Office of Thrift Supervision (OTS). 

• Improving the Department’s compliance with information technology security 

policies, procedures, standards, and guidelines as required by the Federal Information 

Security Management Act (FISMA) 

• Improving Treasury’s management of large acquisitions of systems and other capital 

investments to prevent costly or failed acquisition projects 

The requested funding will also allow OIG to continue to prevent fraud, waste and abuse, 

at all non-IRS Treasury bureaus and offices, including investigating complaints of alleged 

employee misconduct, and allegations of fraud and other crimes involving Treasury 

programs, performing oversight of the Treasury's police operations at the Bureau of 

Engraving and Printing and the U.S. Mint, and conducting proactive efforts to detect, 

investigate, and deter electronic crimes and other threats to the Department’s physical 

and cyber critical infrastructure. 

Additional resources provided in the FY 2009 Budget request will enable OIG to hire two 

auditors and one investigator to assist in the oversight of the critical management 

challenges cited above. 

Total resources required to support OIG activities for FY 2009 are $25,656,000, 

including $19,356,000 from direct appropriation, and $6,300,000 from offsetting 

collections and reimbursable programs. 

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1B – Program History and Future Outlook 

In FY 2007, the OIG completed 64 Audit products, reviewed 450 allegations, opened 

130 investigations, and referred 188 investigations, including 64 one-time referrals 

from a GAO investigation into Metrocheck fraud and 10 one-time referrals from a 

cyber initiative. Audits identified potential monetary benefits totaling nearly 

$35 million. Investigations led to nearly $700 thousand collected in fines, restitution, 

recoveries, and settlements. 

In FYs 2008 and 2009, the OIG expects to complete 56 and 60 Audit products, 

respectively, and refer 105 investigations (each year) for criminal prosecution, civil 

litigation, or administrative action. 

In FYs 2006 and 2007, the OIG met mandated audit requirements while focusing its 

self-initiated audit resources to address the major management and performance 

challenges identified by the Inspector General. The OIG expects to continue this trend

in FYs 2008 and 2009. 

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Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands

Salaries and Expenses FTE Amount

FY 2008 Enacted 112 $18,450

Maintaining Current Levels (MCLs):

 Non-Pay Inflation Adjustment 87

 Pay Annualization 101

 Pay Inflation Adjustment 318

Total FY 2009 Base 112 $18,956

Program Increases:

 Increased Audit & Investigative Capability 3 400

Subtotal FY 2009 Program Changes 3 400

Total FY 2009 President's Budget Request 115 $19,356

2A – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..............................................+$506,000 / +0 FTE 

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

Funds inflation for non-labor related items such as contracts, travel, supplies, equipment 

and GSA rent. 

Pay Annualization +$101,000 / +0 FTE 

Funds are requested for the FY 2009 cost of the January 2008 pay raise. 

Pay Inflation Adjustment +$318,000 / +0 FTE 

Funds are requested for the January 2009 pay raise. 

Program Increases ............................................................................+$400,000 / +3 FTE 

Increased Audit & Investigative Capability +$400,000 / +3 FTE 

This initiative provides funding for two auditors and one investigator. These FTE will 

enable OIG to improve audit coverage in high risk areas, such as programs to combat

terrorist financing and money laundering, management of capital investments, 

particularly IT projects, and IT system security in meeting FISMA and OMB 

requirements. These additional FTE will also help to reduce investigative caseload 

backlog. 

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 2.2 – Operating Levels Table 

Dollars in Thousands

Bureau: Salaries and Expenses

FY 2007 Enacted

FY 2008 

President's 

Budget

Cong. Action 

including 

Recission

FY 2008 Enacted 

Level

FY 2009 

Requested Level

FTE 112 112 112 115

Object Classification:

 11.1 - Full-time permanent 10,740 10,765 0 10,765 11,303

 11.3 - Other than full-time permanent 45 60 0 60 65

 11.5 - Other personnel compensation 400 500 0 500 515

 11.8 - Special personal services payments 0 0 0 0 0

 12 - Personnel benefits 0 2,775 0 2,775 2,894

 13 - Benefits for former personnel 2,480 0 0 0 0

 21 - Travel and transportation of persons 240 475 0 475 450

 22 - Transportation of things 0 0 0 0 0

 23.1 - Rental payments to GSA 0 1,326 0 1,326 1,240

 23.2 - Rental payments to others 1,410 0 0 0 0

 23.3 - Comm, utilities, and misc charges 350 439 0 439 500

 24 - Printing and reproduction 10 15 0 15 15

 25 - Other contractual Services 0 0 0 0 0

 25.1 - Advisory and assistance services 0 0 0 0 0

 25.2 - Other services 200 385 0 385 450

 25.3 - Other purchases of goods and services from Govt.

accounts 

710 975 0 975 1,013

 25.4 - Operation and maintenance of facilities 0 225 0 0 0

 25.5 - Research and development contracts 0 0 0 0 0

 25.6 - Medical care 32 40 0 40 42

 25.7 - Operation and maintenance of equip 150 0 0 225 250

 25.8 - Subsistence and support of persons 0 0 0 0 0

 26 - Supplies and materials 90 150 0 150 244

 31 - Equipment 100 320 0 320 375

 32 - Land and structures 0 0 0 0 0

 33 - Investments and loans 0 0 0 0 0

 41 - Grants, subsidies, and contributions 0 0 0 0 0

 42 - Insurance claims and indemnities 0 0 0 0 0

 43 - Interest and dividends 0 0 0 0 0

 44 - Refunds 0 0 0 0 0

Total Budget Authority $16,957 $18,450 $0 $18,450 $19,356

Budget Activities:

 Audit 11,639 12,658 0 12,658 13,280

 Investigations 5,318 5,792 0 5,792 6,076

Total Budget Authority $16,957 $18,450 $0 $18,450 $19,356

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2.3 – Appropriations Detail Table 

Dollars in Thousands

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Audit 72 $11,561 72 $11,639 72 $12,658 74 $13,280 2.78% 4.91%

Investigations 39 5,292 40 5,318 40 5,792 41 6,076 2.50% 4.90%

Subtotal New Appropriated Resources 111 $16,853 112 $16,957 112 $18,450 115 $19,356 2.68% 4.91%

Other Resources:

Offsetting Collections - Reimbursable 3 1,375 4 1,300 0 6,300 0 6,300 0.00% 0.00%

Transfer in of Multi-year Funds/50%Balance 420 431

Subtotal Other Resources 3 $1,795 4 $1,731 0 $6,300 0 $6,300 0.00% 0.00%

Total Resources Available for Obligation 114 $18,648 116 $18,688 112 $24,750 115 $25,656 2.68% 3.66%

% Change

Obligations Enacted to FY 2009

FY 2008

Resources Available for Obligation

FY 2007 FY 2007 FY 2008 FY 2009

Enacted Request

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, not to exceed $2,000,000 for official travel 

expenses, including hire of passenger motor vehicles; of 

which not to exceed $100,000 for unforeseen emergencies 

of a confidential nature, to be allocated and expended 

under the direction of the Inspector General of the 

Treasury; [$18,450,000] $19,356,000, of which not to 

exceed $2,500 shall be available for official reception and 

representation expenses. (Consolidated Appropriations 

Act, 2008) 

2C – Legislative Proposals 

The Office of Inspector General has no legislative proposals for FY 2009 

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Section 3 – Budget and Performance Plan

This table lists all FY 2009 resources by strategic goal, objective and outcome outlined in 

the FY 2007-2012 Treasury Department Strategic Plan. The Treasury Strategic Plan is a 

corporate level plan for the Department that provides a description of what the agency 

intends to accomplish over the next five years. 

For detailed information about the FY 2007-2012 Treasury Strategic Plan, please go to: 

http://www.treas.gov/offices/management/budget/strategic-plan/

3.1 – Budget by Strategic Outcome 

Dollars in Thousands

TREASURY Strategic Outcome FY 2008 FY 2009 Percent

Enacted Request Change

AMOUNT AMOUNT AMOUNT 

 Accountability & trans 24,750 25,656 3.7%

Total $24,750 $25,656 3.7%

3A – Audit ($13,280,000 from direct appropriations and $6,300,000 from 

reimbursable programs): The Office of Audit conducts audits and produces more than 

50 products annually; and provides firsthand, unbiased perspectives and

recommendations for improving the economy, efficiency, and effectiveness of Treasury 

programs and operations. The Office often identifies significant cost savings to the 

government, principally through self-initiated audits. The Office also responds to 

requests by Treasury officials and the Congress for specific work. While statute requires 

certain audits be conducted every year, the number of required and requested products 

has increased in recent years. Reimbursable funding supports agreements for contract 

audits of other Treasury bureaus. 

3.2.1 – Audit Budget and Performance Plan 

Audit Budget Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $10,582 $11,549 $11,561 $12,658 $13,280

 Reimbursable Resources $2,208 $2,009 $1,795 $6,300 $6,300

Total Resources $12,790 $13,558 $13,356 $18,958 $19,580

Budget Activity Total $12,790 $13,558 $13,356 $18,958 $19,580

Audit Budget Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

Percent of statutory audits completed by the 

required date (%) (E)

 100.00% 100.00% 100.00% 100.00% 100.00%

Number of completed audit products (Ot) 54 57 64 56 60

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

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Description of Performance: In FYs 2006 and 2007, the Office of Audit completed 57 

and 64 audit products, identified potential monetary benefits totaling nearly 

$35 million and $7 million, respectively, and completed all statutory audits by the 

required dates. In FYs 2008 and 2009, the Office plans to complete 56 and 60 Audit 

products, respectively.

In FYs 2006 and 2007, the Office of Audit met mandated audit requirements while 

focusing its self-initiated audit resources to address the major management and 

performance challenges identified by the OIG. In FY 2007 those challenges were 

(1) Corporate Management, (2) Management of Capital Investments, (3) Information 

Security, (4) Linking Resources to Results and (5) Anti-Money Laundering and 

Terrorist Financing/Bank Secrecy Act Enforcement. The OIG expects to continue to 

meet mandated audit requirements and focus its self-initiated audit resources to address 

the major management and performance challenges identified by the OIG in FYs 2008 

and 2009. 

3B – Investigations ($6,076,000 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 and state or local prosecutors for criminal prosecution 

or civil litigation, or to agency officials for corrective administrative action. 

3.2.2 – Investigations Budget and Performance Plan 

Investigations Budget Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Enacted Request

 Appropriated Resources $5,621 $5,281 $5,292 $5,792 $6,076

 Reimbursable Resources $0 $0 $0 $0 $0

Total Resources $5,621 $5,281 $5,292 $5,792 $6,076

Budget Activity Total $5,621 $5,281 $5,292 $5,792 $6,076

Investigations Budget Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

Number of investigations referred for criminal

prosecution, civil litigation or corrective 

administrative action. (Oe) 

 85 144 188 105 105

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: In FY 2006, the Office of Investigations reviewed 489 

allegations, opened 129 investigations, and referred 144 investigations. Investigations led 

to nearly $600 thousand collected in fines, restitution, recoveries, and settlements. In 

FY 2007, the Office reviewed 450 allegations, opened 130 investigations, and referred 188 

investigations, including 64 one-time referrals from a GAO investigation into Metrocheck 

fraud, and 10 one-time referrals from a cyber initiative. Investigations led to nearly $700 

thousand collected in fines, restitution, recoveries, and settlements. In FYs 2008 and 2009, 

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the Office expects to refer 105 investigations for criminal prosecution, civil litigation, or 

corrective administrative action. 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treasury.gov/offices/management/dcfo/accountability-reports/2007-par.shtml

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Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

The OIG identified two mission critical occupations that closely align to its two budget 

activities, audit and investigations, and has integrated workforce plans for these 

specialized professionals (auditors, criminal investigators) with strategic and annual plan 

goals and objectives. 

The OIG has had exceptional recruitment success using automated tools to re-establish 

and then maintain its human capital pipeline for the past four years, with OIG job 

announcements attracting up to 1,000 applicants, and selections made and positions 

offered within 30-days, on average. 
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4.1 – Summary of IT Resources Table 

Dollars in Thousands

Information Technology Investments 1/

FY 2006 FY 2007 FY 2008 

Major IT Investments / Funding Source Budget Activity

& Earlier 

Enacted 2/ Enacted

Likely

Enacted 

N/A 

Subtotal, Major IT Investments $0 $0 $0 Non-Major IT Investments

Audit Investigations $900 $390 -56.7% $450 

OIG STEADY STATE OPERATING COSTS

Infrastructure Investments $0Enterprise Architecture $0Total IT Investments $900 $390 -56.7% $450 1/ This chart includes appropriated resources only, and may not reflect total project costs.2/ This column reflects appropriated resources provided to a project in FY 2006 and any previous years.

% Change 

from FY06 to 

FY07

% Cha

from FY

FY0
4B – Information Technology Strategy 

Information technology (IT) funding has been critical in enabling OIG to make 

significant progress in providing technology refreshment that allows our auditors, 

investigators, and support personnel to use hardware and software actively maintained by 

the manufacturers. IT funding also strengthens OIG’s entity-wide IT security program, 

with equipment designed for anti-virus detection/protection, anti-spam detection, anti-spy 

detection, intrusion detection/prevention, monitoring and patch management, and disaster 

recovery. This ensures that the OIG IT infrastructure operates in a secure manner and that 

the information collected during audits and investigations of the Department’s operations 

and resources are not susceptible to computer attacks and terrorist activities. Maintaining 

the OIG IT infrastructure and its IT security program at an acceptable level requires ongoing upgrades of tools and technologies. 

IT funding has also enhanced OIG’s ability to perform computer forensics during 

investigations and computer vulnerability scanning during audits of the Department’s IT 

operations and resources. Maintaining these capabilities requires on-going upgrades of 

tools and technologies. 

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4.2 – PART Evaluation Table 

Not applicable to the OIG. 

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