Department of the Treasury – Budget in Brief 

Office of Inspector General 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2017* FY 2018 FY 2019 FY 2018 TO FY 2019 

Budget Activity Enacted Annualized 

CR Request $ Change % Change 

Audit $28,524 $28,330 $27,720 ($610) -2.15% 

Investigations $8,520 $8,462 $8,280 ($182) -2.15% 

Subtotal, OIG $37,044 $36,792 $36,000 ($792) -2% 

Offsetting Collections - Reimbursables $10,500 $10,000 $9,000 ($1,000) -10.00% 

Total Program Operating Level $10,500 $10,000 $9,000 ($1,000) -10.00% 

Direct FTE 158 175 175 0 0.00% 

Reimbursable FTE 7 5 5 0 0.00% 

Total FTE 165 180 180 0 0.00% 

*This column reflects levels appropriated in H.R. 255, the Consolidated Appropriations Act of 2017. For further details on the

execution of these resources see the 2019 Budget Appendix chapter for the Department of the Treasury. 

Summary 

The FY 2019 request for $36,000,000 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) Anti-Money Laundering 

and Terrorist Financing/Bank Secrecy Act 

Enforcement, (3) Efforts to Promote Spending 

Transparency and to Prevent and Detect 

Improper Payments, and (4) Management of 

Treasury’s Authorities Intended to Support 

and Improve the Economy, including 

administration of the Gulf Coast Restoration 

Trust Fund. 

Through the audit and investigative functions, 

the OIG supports the Department of the 

Treasury’s FY 2018 – 2022 Strategic Plan. 

The goals are: Goal 1: Boost U.S. Economic 

Growth; Goal 2: Promote Financial Stability; 

Goal 3: Enhance National Security; Goal 4: 

Transform Government-wide Financial 

Stewardship; and Goal 5: Achieve Operational 

Excellence. In support of Treasury’s Strategic 

Plan, the OIG established the following 

strategic goals: 

 Promote the integrity, efficiency, and 

effectiveness of programs and operations 

across Treasury OIG’s jurisdictional 
Department of the Treasury – Budget in Brief 

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 

achieve the Treasury OIG mission, vision, 

and strategic goals 

OIG FY 2019 Budget Highlights 

Dollars in Thousands 

Office of Inspector General FTE Amount 

FY 2018 Annualized CR 175 $36,792 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $305 

Pay Annualization 0 $117 

Non-Pay 0 $188 

Subtotal Changes to Base 0 $305 

Total FY 2019 Base 175 $37,097 

Program Decreases 0 ($1,097) 

 Data Act and Other Workload 0 ($1,097) 

Total FY 2019 Request 175 $36,000 

FY 2019 Budget Adjustments 

Adjustments to Request 

Maintaining Current Level (MCLs) 

Pay Annualization +$117,000 / +0 FTE 

Funds are requested for annualization of the 

January 2018 pay-raise. 

Non-Pay +$188,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Program Decreases 

-$1,097,000 / -0 FTE 

Program decreases in DATA Act and other 

workload. 

Explanation of Budget Activities

Audit $27,720,000 from direct 

appropriations, $9,000,000 from 

reimbursable 

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 programs and 

operations under its jurisdiction, which include 

those of Treasury and the Gulf Coast 

Ecosystem Restoration Council (Council). 

The requested funding for FY 2019 is 

necessary to perform mandated work and 

maintain an appropriate level of oversight of 

these 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. In FY 2019, the 

OIG will also continue to provide oversight of 

Treasury’s government-wide role and 

responsibilities under the DATA Act. 

Reimbursable funding supports agreements for 

contracted audits as well as oversight of the 

Small Business Lending Fund programs. 

Investigations $8,280,000 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. 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 the increased risk of the Recovery Act 

grant programs for low-income housing and 

specific energy properties, OI faces greater 

challenges and anticipated increases in grant 

fraud. In addition, with the establishment of 

Gulf Coast Restoration Trust Fund outreach 

efforts are being made in an effort to prepare 
Department of the Treasury – Budget in Brief 

for future investigative referrals and 

complaints aimed at suspected fraud involving 

the funds with this program. Investigative 

efforts are also 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, 

OI has seen a noted increase in fraud 

impacting other significant Treasury programs 

and operations including fraud impacting the 

Treasury Direct program and the Treasury 

payment processing service operated by the 

Bureau of Fiscal Service. 

OI has also 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 

OIG has no legislative proposals. 

OIG Performance Highlights 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Budget Activity Performance Measure Actual Actual Actual Target Target

Audit Number of Completed Audit 

Products 86 98 90 74 74

Audit 

Percent of Statutory Audits 

Completed by the Required 

Date 

100 100 100 100 100

Investigations 

Percentage of All Cases 

Closed During the Fiscal Year 

That Were Referred for 

Criminal/Civil Prosecution or 

Treasury Administrative Action 

87 84 84 80 80

Description of Performance 

The Office of Audit completed 90 audit 

products in FY 2017 and expects to complete 

74 in FY 2018 due to the reduced funding and 

a significant rent increase that will consume 

resources that would otherwise be used to fully 

staff the Office of Audit. In FY 2019, the 

Office of Audit also expects to complete 74 

audit products. In FY 2017, the Office met its 

mandated audit requirements and identified 

$2.7 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 2017 the OIG exceeded the 

Investigative Performance Measure target, 

opened 100 new investigations, and closed 133 

investigations. The OIG also referred six 

investigations that substantiated administrative 

violations against a Treasury employee to the 

appropriate regulated bureau for action. In 

addition, the OIG referred 135 investigations 

for criminal prosecution and 37 investigations 

for civil prosecution. The OIG arrested 160 

subjects leading to 52 convictions. This, along 

with civil judicial settlements, resulted in 

recoveries ordered to the Treasury of more 

than $639 million. The OIG received 
Department of the Treasury – Budget in Brief 

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, the National Credit Union 

Administration Office of Inspector General 

and the OIG Office of Audit regarding 

potential prosecution of acts which may have 

contributed to the bank failures. Additionally, 

the OIG continues to receive investigative 

referrals from Treasury bureaus, law 

enforcement agencies, and other sources 

regarding fraud impacting Treasury programs 

and operations and routinely conducts 

independent and joint investigations into these 

matters.