Office of Inspector General 

Program Summary by Budget Activity Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 FY 2020 TO FY 2021 

Budget Activity Operating Plan Enacted Request $ Change % Change 

Audit $28,524 $30,524 $29,524 ($1,000) 0.01% 

Investigations $8,520 $10,520 $9,811 ($709) 0.01% 

Subtotal, OIG $37,044 $41,044 $39,335 ($1,709) -11.00% 

Offsetting Collections - Reimbursables $6,000 $9,000 $9,000 $0 0.00% 

Total Program Operating Level $6,000 $9,000 $9,000 $0 -0.00% 

Direct FTE 154 167 180 13 7.70% 

Total FTE 154 167 180 0 0.00% 

FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. This column reflects levels appropriated in P.L 116-93, the 

Appropriations Act of 2019. For further details on the execution of these resources see the 2021 Budget Appendix chapter for the Department 

of the Treasury. 

Summary 

The FY 2021 request for $39,335,000 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, as amended, 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 of 2014 (FISMA); Federal Information Technology 

Acquisition Reform Act; Government Management Reform Act; Improper Payments 

Elimination and Recovery Act of 2010; Digital Accountability and Transparency Act of 2014 

(DATA Act); Federal Deposit Insurance Act; Small Business Jobs Act of 2010; the Government 

Charge Card Abuse Protection Act of 2012; and Resources and Ecosystems Sustainability, 

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

Act). Specific mandates include (1) audits of the Department’s financial statements, (2) audits 

and/or evaluations of the Department’s information systems security program and practices as 

required by FISMA, (3) assessments of the Department’s cyber security information sharing, (4) 

audits of improper payments and recoveries under IPERA, (5) risk assessments and audits of 

charge card programs, (6) material loss reviews of failed insured depositary institutions regulated 

by the Office of the Comptroller of the Currency (OCC), and (7) data quality audits of spending 

data submitted by the Department to USASpending.gov. 

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 and-terrorist 

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

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

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

operations of the Gulf Coast Ecosystem Restoration Council (Council) established under the 

RESTORE Act. The highest risk programs and operations identified as the Council’s 

management and performance challenges include: (1) Federal Statutory and Regulatory 

Compliance and (2) Grant and Interagency Agreement Compliance Monitoring. 
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. 

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 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. 

The Budget includes language that would allow, contingent upon enactment of authorizing 

legislation to transfer the United States Secret Service to Treasury, the Secretary of Homeland 

Security to transfer amounts from the Department of Homeland Security Office of Inspector 

General to support the Treasury OIG’s oversight of the Secret Service.

FY 2021 Budget Highlights 

Dollars in Thousands 

 FTE Amount 

FY 2020 Enacted 167 $41,044 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $982 

Pay Annualization (2020 3.1% average pay raise) 0 $237 

Pay-Raise (1% average pay raise) 0 $231 

FERS Contribution Increase 0 $304 

Non-Pay 0 $210 

Other Adjustments: 13 $0 

Workforce FTE Adjustment 13 $0 

Subtotal Changes to Base 13 $982 

FY 2021 Current Services 180 $42,026 

Program Changes: 

Program Decreases - ($2,691) 

Reduction in Contracts and Absorption of Rent 

Increases - ($2,691) 

FY 2021 President's Budget Request 180 $39,335 
FY 2021 Budget Adjustments 

Adjustments to Request 

Maintaining Current Levels (MCLs)............................................+$982,000 / +0 FTE 

Pay Annualization (3.1%) +$237,000 /+0 FTE 

Funds are requested for annualization of the January 2020 3.1% average pay raise.

Pay-Raise (1.0% in FY 2021) +$231,000 / +0 FTE 

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$304,000 / +0 FTE 

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

effective FY 2021. 

Non-Pay +$210,000 / +0 FTE 

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

adjustments, postage, supplies and equipment.

Other Adjustments..........................................................................+$0 / +13 FTE 

Workforce FTE Adjustment +$0 / +13 FTE 

This adjustment is required to right-size the workforce to the funded FTE level. 

Program Decreases................................................................-$2,691,000 / -0 FTE 

Reduction in Contracts and Absorption of Rent Increase -$2,691,000 /-0 FTE 

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

rent. 

Explanation of Budget Activities

Audit $29,524,000 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 across its jurisdictional boundaries, 

which include those of Treasury and the Gulf Coast Ecosystem Restoration Council (Council). 

The requested funding for FY 2021 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, as amended. The OIG also responds to requests 

by Treasury and Council officials and the Congress for specific work. In FY 2021, 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 financial statement 

audits as well as oversight of the Small Business Lending Fund program. 

Investigations $9,811,000 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 almost $4 billion in U.S. Treasury related contracts, there is an increased risk of contract 

fraud across all U.S. 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 contractors 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. 

OI directs investigative efforts toward those that subvert bank examination processes and/or 

perpetrate fraud affecting 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 leaks of Treasury information, as 

well as fraud impacting the Treasury payment processing service operated by the Bureau of the 

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

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

Legislative Proposals 

OIG has no legislative proposals. 

Performance Highlights 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target 

Audit Number of Completed Audit Products 90 91 79 82 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 

84 98 80 80 80 

Description of Performance 

The Office of Audit completed 79 audit products in FY 2019 and expects to complete 82 in 

FY 2020 due to the increased funding. In FY 2019, OA met its mandated audit requirements and 

identified $18.2 million of questioned costs. 

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 2019 the OIG exceeded the Investigative Performance Measure target, opened 63 new 

investigations, and closed 119 investigations. The OIG also referred 10 investigations that 

substantiated administrative violations against a Treasury employee to the appropriate regulated 

bureau for action. In addition, the OIG referred 81 investigations for criminal prosecution and 3 

investigations involving 13 entities for civil prosecution. The Office of Investigations charged 

and/or indicted 19 subjects. Ongoing investigations resulted in 32 subjects sentenced which 

resulted in fines, seizures, restitution, penalties and settlements of more than $29.5 million. The 

OIG received investigative referrals regarding potential criminal misconduct that occurred prior 

to or during bank failures, and has worked on criminal investigations with the Federal Deposit 

Insurance Corporation Office of Inspector General, the National Credit Union Administration 

Office of Inspector General 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. 

The Office of Investigations 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.