Special Inspector General for TARP

Program Summary by Budget Activity

Dollars in Thousands

Appropriation FY 2012 FY 2013 FY 2014 FY 2012 TO FY 2014

 Enacted Annualized CR Request $ Change % Change

Audit $14,626 $14,716 $12,220 ($2,406) -16.45%

Investigations $27,174 $27,340 $22,703 ($4,471) -16.45%

Subtotal, Special Inspector General for 

TARP $41,800 $42,056 $34,923 ($6,877) -16.45%

Available no-year funds – S&E $2,536 $437 $8,663 $6,127 241.60%

Available PPIP Funds $1,264 $1,618 $1,728 $464 36.71%

Total Program Operating Level $45,600 $44,111 $45,314 ($286) -0.63%

Total FTE 192 192 192 0 0

Budget Activity FY 2012 FY 2013 FY 2014 FY 2012 TO FY 2014

 Enacted Annualized CR Request $ Change % Change

Audit $15,955 $15,682 $16,123 $168 1.05%

Investigations $29,645 $28,429 $29,191 ($454) -1.53%

Total SIGTARP by Budget Activity $45,600 $44,111 $45,314 ($286) -0.63%

Total FTE 192 192 192 0 0

Summary

The 2014 President’s Budget request for the 

Special Inspector General for Troubled Asset 

Relief Program (SIGTARP) includes funding 

to support and complement two of Treasury’s 

five enumerated strategic goals: (1) to repair 

and reform the financial system and support 

the recovery of the housing market by 

assessing the effectiveness of Treasury’s 

activities and evaluating whether Troubled 

Asset Relief Program (TARP) recipients are 

satisfying their legal obligation and (5) to 

manage the government’s finances in a fiscally 

responsible manner as they relate to TARP.

SIGTARP’s mission is to advance economic 

stability by promoting the efficiency and 

effectiveness of TARP management, through 

transparency, coordinated oversight, and 

robust enforcement against those persons and 

entities, whether inside or outside of 

Government, who waste, steal or abuse TARP 

funds.

Of the four primary oversight bodies 

referenced in the Emergency Economic 

Stabilization Act of 2008 (“EESA”), (i.e., 

SIGTARP, the Financial Stability Oversight 

Board, the Congressional Oversight Panel, and 

the Government Accountability Office), 

SIGTARP stands as the sole TARP oversight 

body charged with criminal law enforcement 

responsibility. Also, SIGTARP is the only 

agency solely charged with the mission of:

 Transparency – Promote transparency in 

the Government’s response to financial 

crisis including TARP programs;

 Oversight – Advise and provide 

recommendations to Treasury and the 

Federal banking regulators to facilitate 

effective oversight and to prevent fraud, 

waste and abuse;

 Robust Enforcement – Prevent, detect, 

investigate, and refer for prosecution cases 

of fraud, waste, and abuse related to 

TARP.
SIGTARP’s FY 2014 budget request will 

provide resources to (1) quickly detect, stop 

and investigate fraud related to TARP; (2) 

provide significant oversight and transparency 

over the largest remaining TARP investments, 

including General Motors Company (GM), 

Ally Financial Inc. (ALLY) and other financial 

institutions remaining in TARP; (3) protect 

taxpayer investments in the Public-Private 

Investment Program (PPIP) and the Term 

Asset-Backed Securities Loan Facility 

(TALF); (4) provide oversight and 

transparency over TARP-funded housing 

programs which are scheduled to last as late as 

2019. The Government has contracts or 

guarantees for TARP programs that last as 

long as 2020.

Under EESA SIGTARP is to carry out its 

duties until the Government has sold or 

transferred all assets and terminated all 

insurance contracts acquired under TARP. In 

other words, SIGTARP will remain “on 

watch” as long as TARP assets remain 

outstanding.

SIGTARP FY 2014 Budget Highlights

Dollars in Thousands

Special Inspector General for TARP FTE Amount

FY 2012 Enacted 192 $41,800

FY 2013 Annualized CR Rate 192 $42,056

Changes to Base:

Adjustment to Request - ($1,831)

Non-Recur CR Increase - ($256)

Non-Recur Operations Partly Funded 

from No-Year Resources from FY 2013 - ($1,575)

Maintaining Current Levels (MCLs): - $433

Pay-Raise - $240

Non-Pay - $193

Efficiency Savings: - ($5,815)

Operations Partially Funded from NoYear Resources - ($5,815)

Subtotal Changes to Base - ($7,213)

Total FY 2014 Base 192 $34,843

Program Changes:

Program Increases: - $80

Council of the Inspectors General on 

Integrity and Efficiency - $80

Total FY 2014 Request 192 $34,923

FY 2014 Budget Adjustments

Adjustments to Request

Non-Recur CR Increase -$256,000 / +0 FTE

The across-the-board 0.612 percent increase 

provided in the CR through March 27, 2013 is 

non-recurred. 

Non-Recur Operations Partly Funded from 

No-Year Resources from FY 2013 -$1,575 / +0 

FTE

Reduction in general operating costs will occur 

from the annual account. SIGTARP will 

continue to use its mandatory funding.

Maintaining Current Levels (MCLs) 

Pay-Raise +$240,000 / +0 FTE

The President’s Budget proposes a 1 percent 

pay-raise for federal employees in 2014.

Non-Pay +$193,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment.

Efficiency Savings

Operations Partially Funded from No-Year

Resources -$5,815,000 / +0 FTE

Reduction in general operating costs to occur 

from the annual account. SIGTARP will 

instead continue to use its mandatory funding.

Program Increases 

Council of the Inspectors General on Integrity 

and Efficiency +$80,000 / +0 FTE

The Council of Inspectors General on Integrity 

and Efficiency (CIGIE) has assessed 

SIGTARP $80,000 for FY 2014 to support 

coordinated Government-wide activities that 

identify and review areas of weakness and 

vulnerability in Federal programs and 

operations with respect to fraud, waste, and 

abuse.
Explanation of Budget Activities

Audit ($12,220 from direct appropriations)

The Audit Division (AD) conducts, supervises, 

and coordinates programmatic audits with 

respect to Treasury’s operation of TARP and 

the recipients’ compliance with their 

obligations under relevant law and contracts; 

evaluates TARP policies and procedures; and 

provides recommendations to Treasury.

A particular focus of AD is ensuring that 

appropriate internal controls are in place and 

are complied with, both by Treasury in its 

management of TARP and by the recipients of 

TARP funds, including vendors and the 

entities in which money is invested. Where 

controls or compliance are found to be lacking, 

or where particular aspects or policies are 

found ineffective at reaching TARP’s goals, 

AD assists the Special Inspector General to 

fashion recommendations to resolve such 

issues.

Investigations ($22,703 from direct 

appropriations)

Investigations Division (ID) supervises and 

conducts criminal and civil investigations into 

those persons and entities, whether inside or 

outside of government, who waste, steal, or 

abuse TARP funds. One of SIGTARP's 

primary investigative priorities is to operate 

the SIGTARP Hotline, thus providing a 

simple, accessible way for the American 

public to report concerns, allegations, 

information, and evidence of violations of 

criminal and civil laws in connection with 

TARP. From its inception in February 2009

the SIGTARP Hotline has received and 

analyzed more than 31,756 Hotline contacts. 

A substantial number of SIGTARP’s 

investigations were generated in connection 

with Hotline tips. The SIGTARP Hotline can 

receive information anonymously, and the 

confidentiality of whistleblowers is protected 

to the fullest extent possible.

Legislative Proposals

SIGTARP has no legislative proposals.

SIGTARP Performance by Budget Activity

Budget Activity Performance Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Target Target

Audit Number of Completed Audit 

Products (Units)

9 13 13 10 10

Investigations Percentage of Investigations 

Accepted for Consideration by 

Prosecutors (%)

100 94 95 60 70

Key: DISC - Discontinued and B - Baseline

Description of Performance

In FY 2012 SIGTARP met its performance 

goal, “Congressional Requests for Testimony” 

by completing four testimonies. SIGTARP 

anticipates that Congress will continue to have 

interest in SIGTARP’s work. The performance 

goal, “Number of Completed Audit Products” 

includes audit reports and memoranda that 

promote the efficiency and effectiveness of the 

Troubled Asset Relief Program (TARP). In 

FY 2012 SIGTARP completed 13 audit 

products exceeding the goal of 12 for this 

reporting period. In order to more accurately 

measure the impact of reports, SIGTARP 

implemented a new measure in FY 2013 –

“Percent of Recommendations Agreed to by 

the Office of Financial Stability”. Since 

SIGTARP does not have control over
Treasury’s decision to implement SIGTARP 

recommendations it is not productive to 

continue to measure this component for 

program effectiveness. This measure will be 

discontinued in FY 2014.

In FY 2012 SIGTARP referred 76 percent of 

“Hotline Complaints Responded to or Referred 

for Investigation or further action within 14 

days of Receipt”, exceeding the goal of 70 for 

this period. In FY 2012, the “Percentage of 

Preliminary Investigations Converted to Full 

Investigations within 180 Days” was 77 

percent, exceeding the goal of 45 percent. 

This success is attributed to SIGTARP’s 

ability to respond quickly to allegations and 

devote the necessary resources. SIGTARP has 

involved the prosecutors in the early stages of 

the Preliminary Investigations to ensure that

allegations, if proven, will be prosecuted. The 

“Percentage of Investigations Accepted for 

Consideration by Prosecutors” was 95 in FY 

2012, exceeding the target of 55. SIGTARP 

ID coordinates closely with other law 

enforcement agencies with the goal of forming 

law enforcement partnerships across the 

Federal government to leverage SIGTARP’s 

expertise and unique position. The overall 

“Percentage of cases that are joint agency/task 

force Investigations” with other law 

enforcement agencies was 65 percent, 

exceeding the target of 40 percent. This was 

primarily due the significant number of high 

profile cases opened in FY 2012.

It is expected that SIGTARP will continue to 

meet or exceed performance measures in 

FY 2013 and FY 2014.