FY 2020 BUDGET JUSTIFICATION

 

 

Office of Inspector General

Railroad Retirement Board
UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

March 18, 2019

The Honorable Michael R. Pence

President of the Senate

Eisenhower Executive Office Building

1650 Pennsylvania Avenue, NW

Washington, DC 20501

Dear Mr. President:

We are respectfully submitting the fiscal year 2020 Congressional Budget 

Justification for the Office of Inspector General (OIG) for the Railroad Retirement 

Board (RRB). This justification was prepared in compliance with Office of 

Management and Budget Circular No. A-11. The President’s proposed budget for 

fiscal year 2020 will provide $11,000,000 to the Limitation on the Office of 

Inspector General for audit and investigative activities.

The RRB OIG focuses its audit and investigative efforts on protecting the integrity 

of the RRB’s trust funds and improving the delivery of benefits to the railroad 

community. The OIG provides comprehensive oversight of all RRB operations and 

programs.

The OIG is the exclusive provider of financial and internal audit services to the 

RRB and operates a nationwide investigative program to address allegations of 

fraud and employee misconduct.

We are requesting your support for the fiscal year 2020 funding level of 

$11,000,000 to continue our oversight of agency programs. In fiscal year 2020, 

we will conduct audits of agency programs and perform investigations of 

allegations of waste, fraud, and abuse. 
2

This office will continue to efficiently use all available resources to improve 

agency program operations, reduce fraud against benefit programs, and help 

ensure the agency provides the highest level of service to its constituents.

Thank you for your support of this proposed budget.

Sincerely,

Original Signed 

Marin J. Dickman, Inspector General

Enclosure

cc: The Honorable Mick Mulvaney, Director

 Office of Management and Budget
UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

March 18, 2019

The Honorable Nancy Pelosi

Speaker of the House of Representatives

Office of the Speaker

United States Capitol

Washington, DC 20515-6501

Dear Madam Speaker:

We are respectfully submitting the fiscal year 2020 Congressional Budget 

Justification for the Office of Inspector General (OIG) for the Railroad Retirement 

Board (RRB). This justification was prepared in compliance with Office of 

Management and Budget Circular No. A-11. The President’s proposed budget for 

fiscal year 2020 will provide $11,000,000 to the Limitation on the Office of 

Inspector General for audit and investigative activities.

The RRB OIG focuses its audit and investigative efforts on protecting the integrity 

of the RRB’s trust funds and improving the delivery of benefits to the railroad 

community. The OIG provides comprehensive oversight of all RRB operations and 

programs.

The OIG is the exclusive provider of financial and internal audit services to the 

RRB and operates a nationwide investigative program to address allegations of 

fraud and employee misconduct.

We are requesting your support for the fiscal year 2020 funding level of 

$11,000,000 to continue our oversight of agency programs. In fiscal year 2020, 

we will conduct audits of agency programs and perform investigations of 

allegations of waste, fraud, and abuse. 
2

This office will continue to efficiently use all available resources to improve 

agency program operations, reduce fraud against benefit programs, and help 

ensure the agency provides the highest level of service to its constituents.

Thank you for your support of this proposed budget.

Sincerely,

Original Signed

Marin J. Dickman, Inspector General

Enclosure

cc: The Honorable Mick Mulvaney, Director

 Office of Management and Budget
Office of Inspector General - Railroad Retirement Board

JUSTIFICATION OF BUDGET ESTIMATES

FISCAL YEAR 2020

TABLE OF CONTENTS

Executive Summary.........................................................................................1

Proposed Appropriation Language..................................................................2

Explanation of Proposed Appropriation Language ..........................................3

Authorizing Legislation ....................................................................................4

Budget Authority and Staffing by Activity.........................................................5

Budget Authority by Object Classification........................................................6

Contractual Services .......................................................................................7

Personnel Summary ........................................................................................8

Amounts Available for Obligation.....................................................................9

Appropriations History Table .........................................................................10

Staffing History ..............................................................................................11

Explanation of Fiscal Year 2020 Budget Request .........................................12

Office of Audit...........................................................................................13

Office of Investigations.............................................................................15

Fiscal Year 2020 Annual Performance Budget..............................................19
Office of Inspector General - Railroad Retirement Board

1

EXECUTIVE SUMMARY

The fiscal year 2020 President’s budget for the Office of Inspector General –

Railroad Retirement Board (OIG-RRB) provides $11,000,000 in budget authority 

for 54 full-time equivalent (FTEs) staff and miscellaneous expenses. With this 

funding, the OIG-RRB will endeavor to meet the productivity goals set forth in its 

Performance Budget.

The OIG-RRB will focus its efforts relating to agency programs and operations 

on: (1) conducting independent audits and investigations; (2) promoting 

economy, efficiency, and effectiveness; (3) detecting fraud and abuse; and (4) 

keeping the Board Members and the Congress informed about problems and 

recommending corrective actions concerning RRB operations. 

The OIG-RRB is requesting $11,000,000 in fiscal year 2020 to continue audit and 

investigative coverage of the RRB benefit programs, to identify program 

weaknesses, and reduce fraud in agency programs. The office will focus 

resources on operational areas with the greatest impact on RRB activities and 

related customer service. Investigative resources will be devoted to maintaining 

the integrity of RRB programs through the investigation of waste, fraud, and 

abuse. 
Office of Inspector General - Railroad Retirement Board

2

PROPOSED APPROPRIATION LANGUAGE

LIMITATION ON THE OFFICE OF INSPECTOR GENERAL

 For expenses necessary for the Office of Inspector General for audit, investigatory 

and review activities, as authorized by the Inspector General Act of 1978, not more than 

$11,000,000, to be derived from the railroad retirement accounts and railroad 

unemployment insurance account. 

 
Office of Inspector General - Railroad Retirement Board

3

Explanation of Proposed Appropriation Language

Appropriation Language Explanation

For expenses necessary for the 

Office of Inspector General for 

audit, investigatory and review 

activities, as authorized by the 

Inspector General Act of 1978, 

not more than $11,000,000 to be 

derived from the railroad 

retirement accounts and railroad 

unemployment insurance 

account. 

This budget requests funding for 

audit, investigation, and review of the 

railroad retirement/survivor and 

unemployment/sickness insurance 

benefit programs. The Limitation on 

the Office of Inspector General draws 

on the following trust fund accounts 

for funding: Railroad Retirement 

Account, Social Security Equivalent 

Benefit Account, and the Railroad 

Unemployment Insurance Trust Fund. 
Office of Inspector General - Railroad Retirement Board

4

Authorizing Legislation

FY 2019 FY 2020

Authorizing

Legislation Authorized

Current 

Appropriation Authorized

Appropriation 

Requested

Inspector 

General Act of 

1978, as 

amended

Indefinite $11,000,000 a/ Indefinite $11,000,000

a/ This amount reflects the appropriated level of funding provided by the 

Department of Defense and Labor, Health and Human Services, and 

Education Appropriations Act, 2019, and the Continuing Appropriations 

Act, 2019 (Division B of P.L. 115-245, as amended).

Note: The 1988 amendments to the Inspector General Act of 1978 (P.L. 100-

504) included the Railroad Retirement Board as an “establishment” 

covered by the Inspector General Act. Previously, the Railroad 

Solvency Act of 1983 (P.L. 98-76) amended the Railroad Retirement 

Act of 1974 (P.L. 93-445) to provide for an Office of Inspector General 

at the Railroad Retirement Board.
Office of Inspector General - Railroad Retirement Board

5

Budget Authority and Staffing by Activity

FY 2018 FY 2019 FY 2020

Program by Activity

Actual 

FTEs

Budget 

Amount

Projected 

FTEs

Budget 

Amount

Projected 

FTEs

Budget

Amount

Office of Inspector General

Audit and Investigation 48 $11,000,000 54 $11,000,000 54 $11,000,000

Authorizing Legislation $11,000,000 a/ $11,000,000 b/ $11,000,000

a/ Represents the level of funding provided by the Consolidated 

Appropriations Act, 2018 (P.L. 115-141).

b/ Represents the appropriated level of funding provided by the Department of 

Defense and Labor, Health and Human Services, and Education 

Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (Division 

B of P.L. 115-245, as amended). 
Office of Inspector General - Railroad Retirement Board

6

Budget Authority by Object Classification

Limitation on the Office of Inspector General a/

Direct Obligations by Object Class

FY 2018

ACTUAL 

EXPENSES

FY 2019

ESTIMATE 

FY 2020

BUDGET 

ESTIMATE

FY 2020 vs. FY 

2019

INCREASE/

(DECREASE) d/

Personnel Compensation:

Full-time permanent $5,267,498 $5,955,000 b/ $6,736,000 b/ $781,000

Other than full-time permanent 48,278 50,000 b/ 50,000 b/ 0

Other personnel compensation 128,872 130,000 130,000 0

Total Personnel Compensation 5,444,648 6,135,000 6,916,000 781,000

Personnel Benefits: Civilian 2,022,897 2,402,000 b/ $2,733,000 b/ 331,000

Benefits for former personnel 0 0 0 0

Travel and transportation of persons 262,578 300,000 300,000 0

Rental payments to GSA 300,000 300,000 300,000 0

Communications, utilities and miscellaneous 

charges 108,167 75,000 75,000 0

Consulting services 0 0 0 0

Other services 2,115,614 1,563,000 451,000 (1,112,000)

Supplies and materials 39,909 50,000 50,000 0

Equipment 98,500 175,000 175,000 0

Total Direct Obligations $10,392,313 $11,000,000 $11,000,000 0

Unobligated Balance 607,687 0 0 0

Total Budget Authority $11,000,000 $11,000,000 c/ $11,000,000 0

Total Full-Time Equivalent Usage 48 54 54 0

a/ The Limitation on the Office of Inspector General excludes reimbursable funding the OIG-RRB expects to receive from the Centers for 

Medicare & Medicaid Services.

b/ Salary and benefit estimates for FY 2019 and FY 2020 reflect an Office of Management and Budget policy pay freeze in 2019 and 2020.

c/ Represents the appropriated level of funding provided by the Department of Defense and Labor, Health and Human Services, and 

Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (Division B of P.L. 115-245, as amended). 

d/ FY 2020 vs. FY 2019 personnel compensation and benefits change represents fully-staffed salary and benefit costs for 54 FTEs during FY 

2020.
Office of Inspector General - Railroad Retirement Board

7

Contractual Services

FY 2018 

ACTUAL

FY 2019

ESTIMATE

FY 2020 

ESTIMATE

Contracts

OPM security investigations $30,000 $22,500 $20,000

Information technology support 

services 110,000 110,000 112,000

OIG network assessment 0 50,000 50,000

Microsoft Enterprise 55,000 55,000 60,000

Data analytics 15,000 15,000 15,000

Audit of Statement of Social 

Insurance 50,000 55,000 50,000

Contract Program Total $260,000 $307,500 $307,000
Office of Inspector General - Railroad Retirement Board

8

Personnel Summary

FY 2018

ACTUAL

FY 2019

ESTIMATE

FY 2020

ESTIMATE

IG 1 1 1

Subtotal 1 1 1

ES-00 3 3 3

Subtotal 3 3 3

GS/GM-15 2 2 2

GS/GM-14 10 10 10

GS/GM-13 16 18 18

GS-12 12 15 16

GS-11 3 3 2

GS-10 0 0 0

GS-09 1 2 2

GS-08 0 0 0

GS-07 0 0 0

GS-06 0 0 0

GS-05 0 0 0

GS-04 0 0 0

GS-03 0 0 0

GS-02 0 0 0

GS-01 0 0 0

Subtotal 44 50 50

54

End of Year: Total full-time

permanent employment 48 54

Full-time equivalent (FTE) usage 48 54 54

END OF YEAR

Average ES salary $186,146 $186,146 $186,146

Average GS/GM grade 12.82 12.74 12.76

Average GS/GM salary

without premium pay $112,393 $107,398 $107,667

Average GS/GM salary

with premium pay $123,823 $119,681 $119,950
Office of Inspector General - Railroad Retirement Board

9

Amounts Available for Obligation

Financing FY 2018

Actual

FY 2019

Estimate

FY 2020

Estimate

Obligations from new authority $10,392,313 $11,000,000 $11,000,000

Plus: Unobligated balance 607,687 0 0

Limitation on the Office of Inspector General $11,000,000 a/ $11,000,000 b/ $11,000,000

Relation of direct obligations to outlays

Obligations incurred $10,392,313 $11,000,000 $11,000,000

Obligated balance, start of year --- 875,955 875,955

Obligated balance, end of year (875,955) (875,955) (875,955)

Direct Outlays $9,516,358 $11,000,000 $11,000,000

a/ Represents the level of funding provided by the Consolidated Appropriations Act, 2018 (P.L. 115-141).

b/ Represents the appropriated level of funding provided by the Department of Defense and Labor, Health and 

Human Services, and Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (Division B of 

P.L. 115-245, as amended).

Note: Funding for the audit and investigative activities of the Railroad Retirement Board – Office of Inspector General is 

transferred from the Railroad Retirement Account (RRA), the Social Security Equivalent Benefit (SSEB) Account, 

and the Railroad Unemployment Insurance Account (RUIA). The President’s budget reflects budget authority for 

administrative expenses in the RRA, SSEB Account, and the RUIA. The Limitation on the Office of Inspector 

General receives its spending authority from offsetting collections equal to the appropriation amount.
Office of Inspector General - Railroad Retirement Board

10

APPROPRIATIONS HISTORY TABLE

FISCAL 

YEAR

PRESIDENT'S

BUDGET

HOUSE

ALLOWANCE

SENATE

ALLOWANCE APPROPRIATION

2009 $7,806,000 $7,806,000 $7,806,000 $7,806,000 a/

2010 $8,186,000 $8,186,000 $8,186,000 $8,186,000 b/

2011 $8,936,000 ---- ---- $8,169,628 c/

2012 $9,259,000 ---- ---- $8,154,559 d/

2013 $8,820,000 ---- ---- $7,973,686 e/

2014 $8,877,000 ---- ---- $8,272,000 f/

2015 $8,750,000 ---- ---- $8,437,000 g/

2016 $9,450,000 ---- ---- $8,437,000 h/

2017 $10,499,000 ---- ---- $10,000,000 i/

2018 $8,437,000 ---- ---- $11,000,000 j/

2019 $8,437,000 ---- ---- $11,000,000 k/

2020 $11,000,000

a/ Represents the amount made available by the Consolidated Appropriations Act, 2009 

(P.L. 111-8).

b/ Represents the amount made available by the Consolidated Appropriations Act, 2010 

(P.L. 111-117).

c/ Represents the amount made available by the Full-Year Continuing Appropriations Act, 

2011 (P.L. 112-10), less $16,372 rescinded in accordance with P.L. 112-10.

d/ Represents the Consolidated Appropriations Act, 2012 (P.L. 112-74) amount of 

$8,170,000, less $15,441 rescinded in accordance with P.L. 112-74.

e/ Represents the level of funding provided by the Consolidated and Further Continuing 

Appropriations Act, 2013 (P.L. 113-6).

f/ Represents the level of funding provided by the Consolidated Appropriations Act, 2014 

(P.L. 113-76).

g/ Represents the level of funding provided by the Consolidated and Further Continuing 

Appropriations Act, 2015 (P.L. 113-235)

h/ Represents the level of funding provided by the Consolidated Appropriations Act, 2016 

(P.L. 114-113).

i/ Represents the level of funding provided by the Consolidated Appropriations Act, 2017 

(P.L. 115-31).

j/ Represents the level of funding provided by the Consolidated Appropriations Act, 2018 

(P.L. 115-141).

k/ Represents the level of funding provided by the Department of Defense and Labor, Health 

and Human Services, and Education Appropriations Act, 2019 and Continuing 

Appropriations Act, 2019 (Division B of P.L. 115-245, as amended).
Office of Inspector General - Railroad Retirement Board

11

STAFFING HISTORY

Actual and Projected Full-Time Equivalent Employment

Fiscal

Year

Total

FTEs

Change 

from 

previous 

year

Percent

change 

from

previous 

year

Cumulative

FTE

changes

Cumulative

percent 

change

since fiscal

year 1993

1993 99 --- --- --- ---

1994 93 -6 -6.1% -6 -6.1%

1995 88 -5 -5.4% -11 -11.1%

1996 74 -14 -15.9% -25 -25.3%

1997 62 -12 -16.2% -37 -37.4%

1998 59 -3 -4.8% -40 -40.4%

1999 59 0 0.0% -40 -40.4%

2000 54 -5 -8.5% -45 -45.5%

2001 51 -3 -5.6% -48 -48.5%

2002 51 0 0.0% -48 -48.5%

2003 53 2 3.9% -46 -46.5%

2004 51 -2 -3.8% -48 -48.5%

2005 50 -1 -2.0% -49 -49.5%

2006 51 1 2.0% -48 -48.5%

2007 48 -3 -5.9% -51 -51.5%

2008 47 -1 -2.1% -52 -52.5%

2009 48 1 2.1% -51 -51.5%

2010 53 5 10.4% -46 -46.5%

2011 53 0 0.0% -46 -46.5%

2012 52 -1 -1.9% -47 -47.5%

2013 48 -4 -7.7% -51 -51.5%

2014 49 1 2.1% -50 -50.5%

2015 48 -1 -2.0% -51 -51.5%

2016 47 -1 -2.1% -52 -52.5%

2017 48 1 2.1% -51 -51.5%

2018 48 0 0.0% -51 -51.5%

2019 54 a/ 6 12.5% -45 -45.5%

2020 54 a/ 0 0.0% -45 -45.5%

a/ Reflects estimated FTEs.
Office of Inspector General - Railroad Retirement Board

12

EXPLANATION OF THE FISCAL YEAR 2020 REQUEST

The Office of Inspector General (OIG) for the Railroad Retirement Board (RRB) 

is responsible for promoting economy, efficiency, and effectiveness; and for 

identifying and preventing fraud, waste, and abuse in agency programs. The 

RRB administers comprehensive retirement survivor and unemployment 

sickness insurance benefit programs for the nation’s railroad workers and their 

families. It is the RRB’s mission to pay accurate and timely benefits. During fiscal 

year 2018, the RRB paid approximately $13.1 billion in retirement and survivor 

benefits to 540,000 beneficiaries, including $1.1 billion in disability annuities. It 

also paid $100.2 million in unemployment and sickness insurance benefits to 

about 9,000 unemployment insurance beneficiaries and 15,900 sickness 

insurance beneficiaries. 

The RRB contracts with a separate Medicare Part B carrier to process the 

Medicare Part B claims of qualified railroad retirement beneficiaries. As of 

September 30, 2018, there were about 455,300 such beneficiaries enrolled in the 

Medicare Part B program through the RRB. During fiscal year 2018, the RRB’s 

separate Part B carrier paid approximately $868 million in benefits.

The OIG conducts audits, management reviews, and inspections of RRB 

program operations; and provides recommendations for improvement to agency 

management. The OIG also identifies and investigates cases of waste, fraud, 

and abuse in RRB programs; and makes referrals for prosecution and monetary 

recovery actions.

The fiscal year 2020 Performance Budget, including the President’s proposed 

administrative budget and projected performance statistics for fiscal years 2019 

and 2020, is included in this budget justification.

The OIG is requesting $11,000,000 in fiscal year 2020 to conduct its independent 

oversight of agency operations. The OIG will continue its efforts to perform fraud 

investigations, identify operational weaknesses, and detect internal control 
Office of Inspector General - Railroad Retirement Board

13

deficiencies in RRB benefit programs. The OIG will also continue its work with 

agency managers to ensure implementation of corrective actions. 

The OIG conducts its operation through two major components: the Office of 

Audit and the Office of Investigations. A discussion of the priority areas in the 

fiscal year 2020 for audit and investigative activities follows.

OFFICE OF AUDIT

The mission of the Office of Audit (OA) is to (1) promote economy, efficiency, and 

effectiveness in the administration of RRB programs, and (2) detect and prevent 

fraud and abuse in such programs. Through the Inspector General, OA keeps the 

Board Members and the Congress informed of current and potential problems 

and deficiencies in RRB operations and the status of progress towards corrective 

action.

During fiscal year 2020, in addition to its mandated work, OA will focus on areas 

affecting program performance, the efficiency and effectiveness of agency 

operations, and areas of potential fraud, waste, and abuse. In fiscal year 2020, 

OA will continue its emphasis on long term systemic problems and solutions, and 

will address major issues that affect the RRB’s service to rail beneficiaries and 

their families. OA has identified six broad areas of potential audit coverage:

• Financial Accountability

• Railroad Retirement Act (RRA) and Railroad Unemployment Insurance 

Act (RUIA) Benefit Program Operations

• RRB Contracts and Contracting Activities

• Railroad Medicare Program Operations

• Security, Privacy, and Information Management

• Improper Payments Elimination and Recovery Act of 2010 Oversight

During fiscal year 2020, OA must accomplish the following mandated activities:

• Audit of the RRB’s financial statements pursuant to the requirements of 

the Accountability of Tax Dollars Act of 2002
Office of Inspector General - Railroad Retirement Board

14

• Evaluation of information security pursuant to the Federal Information 

Security Management Act of 2014 (FISMA)

• Audit of the RRB’s compliance with the Improper Payments Elimination 

and Recovery Act of 2010

• Review of IG requirements for Government Charge Card Abuse and 

Prevention Act of 2012

• Identification of performance and management challenges for fiscal year 

2020

• Semiannual reporting in accordance with the Inspector General Act of 

1978, as amended

The portion of OA resources dedicated to conducting mandated audits continues 

to be significant. In FY 2018, nearly 65 percent of direct audit time was spent 

completing mandated audits, and this percent should remain consistent in FY 

2020. 

Although our mandated work results in important audit findings and agency 

oversight, it increasingly limits other audits that can be undertaken without an 

increase in resources.

Placed in context, the OA currently reports on these seven major challenges 

facing the RRB:

1. Program Integrity to Strengthen Disability Programs

2. Information Technology Security and System Modernization

3. Management of Railroad Medicare

4. Assessing Payment Accuracy and Transparency

5. Human Capital Management

6. Material Weaknesses Related to Financial Statement Reporting and the 

Control Environment

7. RRB Oversight of the National Railroad Retirement Investment Trust

Consequently, with increased resources, the OA could meet all Congressional 

mandates and provide additional audit oversight.
Office of Inspector General - Railroad Retirement Board

15

During fiscal year 2020, OA will complete the audit of the RRB’s fiscal year 2019 

financial statements and begin its audit of the agency’s fiscal year 2020 financial 

statements. OA contracts with a consulting actuary for technical assistance in 

auditing the RRB’s Statement of Social Insurance and the Statement of Changes 

in Social Insurance Amounts. OA also hired a contractor for the fiscal year 2018 

FISMA audit. In addition, OA conducts audits of individual information systems 

that are required to support an annual evaluation of federal information system 

controls (FISCAM). Our work in this area is targeted toward the identification and 

elimination of security deficiencies and control weaknesses in the RRB’s 

information security systems, including controls over sensitive personally 

identifiable information. 

OA undertakes additional projects with the objective of allocating available audit 

resources to areas in which they will have the greatest value. In making that 

determination, OA utilizes a strategic planning process to focus on areas 

affecting program performance, the efficiency and effectiveness of agency 

operations, and areas of potential fraud, waste, and abuse. OA also considers 

staff availability, current trends in management, and Congressional and

Presidential concerns. The OA annual work plan is the primary tool for directing 

and controlling OA activities. 

OFFICE OF INVESTIGATIONS

The Office of Investigations (OI) focuses its efforts on identifying, investigating 

and presenting cases for prosecution, throughout the United States, concerning 

fraud in RRB benefit programs. OI conducts investigations relating to the 

fraudulent receipt of RRB sickness, unemployment, disability, or retirement 

benefits. OI investigates railroad employers and unions when there is an 

indication that they have submitted false reports to the RRB. OI also conducts 

investigations involving fraudulent claims submitted to the Railroad Medicare 

Program. These investigative efforts can result in criminal convictions, civil 

judgments and penalties, and the recommendation for administrative recovery of 

program benefit funds.
Office of Inspector General - Railroad Retirement Board

16

OI initiates cases based on information from a variety of sources. For example, 

the RRB conducts computer matching of employment and earnings information 

reported to state governments and the Social Security Administration with RRB 

benefits paid data. Fraud referrals are made to OI if a match is found. OI also 

receives allegations of fraud through the OIG Hotline, contacts with state, local 

and federal agencies, and information developed through audits conducted by 

the OIG’s OA. 

The Inspector General Empowerment Act (IGEA) of 2016 strengthened an OIG’s 

ability to identify fraudulent or improper government payments through data 

analytics. The OIG will continue their commitment to proactively designing 

projects aimed at promoting economy, efficiency, and effectiveness in the RRB’s 

program and operations. In addition to identifying potential targets previously 

undetected through the RRB’s standard program integrity measures, OIG will 

make the necessary recommendations to resolve identified program weaknesses 

and prevent future occurrences. 

OI Investigative Results for Fiscal Year 2018

Civil

Judgments Indictments/Informations Convictions

Financial

Accomplishments

22 48 42 $174,377,140.281

OI anticipates an ongoing caseload of approximately 280 investigations in fiscal 

year 2020. During fiscal year 2018, OI opened 144 new cases and closed 160. 

As of September 30, 2018, OI had cases open in 39 states and the District of 

Columbia, with an estimated fraud loss totaling over $558 million. This potential 

fraud amount is related not only to programs administered exclusively by the 

RRB but also to other federal programs such as Medicare or Social Security 

which have been identified during OI’s joint investigative work.

 1 The total amount of financial accomplishments reflect fraud amounts related to programs 

administered exclusively by the RRB and fraud amounts from other federal programs such as 

Medicare or Social Security, which were included in the disposition resulting from our

investigations. 
Office of Inspector General - Railroad Retirement Board

17

OI will concentrate its resources on cases with the highest fraud losses. 

Typically, these cases are related to the RRB’s disability and Medicare programs. 

Disability fraud cases currently constitute approximately 40 percent of OI’s total 

caseload. These cases involve more complicated schemes and often result in the 

recovery of substantial funds for the agency’s trust funds. OI will continue to 

dedicate considerable time and resources in the investigation of nationwide 

schemes to defraud the RRB disability program. These types of cases usually 

require sizeable resources including travel by special agents to conduct 

surveillance, more sophisticated investigative techniques, and numerous witness 

interviews. The schemes are often complex and, in some instances, may include 

conspiratorial involvement by attorneys. These cases usually require very 

sophisticated financial analysis, since the schemes are often cloaked in what 

could appear to be legitimate business practices.

The OI continues to work joint cases with other Offices of Inspector General and 

federal law enforcement agencies that have responsibility for healthcare fraud 

matters. Medicare fraud investigations currently represent approximately 23 

percent of OI’s total caseload and more than $304 million in potential fraud 

losses. OI’s collaborative joint investigative efforts ensure that RRB beneficiaries 

are protected from sham medical practitioners, and that the Railroad Medicare 

program’s interests are safeguarded from fraudulent schemes. 

OI will continue to investigate fraud violations of railroad employees collecting 

unemployment or sickness insurance benefits while working and receiving wages 

from an employer. Unemployment fraud cases currently constitute 19 percent of 

our investigative caseload. OI will also investigate retirement fraud, which 

typically involves the theft and fraudulent cashing of U.S. Treasury checks or the 

withdrawal of electronically deposited RRB benefits.

OI will continue to use the Department of Justice’s Affirmative Civil Enforcement 

program to prosecute cases that do not meet criminal prosecution thresholds. 
Office of Inspector General - Railroad Retirement Board

18

In fiscal year 2020, OI will continue to coordinate its efforts with agency program 

managers to address vulnerabilities in benefit programs that allow fraudulent 

activity to occur and will recommend changes to ensure program integrity. OI

plans to continue proactive projects to identify fraud matters that are not detected 

through the agency’s program policing mechanisms. Findings will be conveyed to 

agency management through OIG systemic implication reports to alert officials of 

operational weaknesses that may result in fraud or abuse against RRB 

programs. OI will also continue to work with RRB program managers to ensure 

the appropriate and timely referral of all fraud matters to the OIG.

OI will also investigate complaints involving administrative irregularities and any 

alleged misconduct by agency employees. 

Conclusion

In fiscal year 2020, the OIG will continue to focus its resources on the review and 

improvement of RRB operations and will conduct activities to ensure the integrity 

of agency trust funds. This office will continue to work with agency officials to 

ensure the agency is providing quality service to railroad workers and their 

families. The OIG will also aggressively pursue all individuals who engage in 

activities to fraudulently receive RRB funds, including Railroad Medicare funds. 
Office of Inspector General - Railroad Retirement Board

19

FISCAL YEAR 2020 PERFORMANCE BUDGET

The audit and investigative programs of the Office of Inspector General (OIG) are 

dedicated to protecting the integrity of the Railroad Retirement Board’s (RRB) 

trust funds and improving the delivery of benefits to the railroad community. The 

OIG has developed the Fiscal Year 2020 Performance Budget to support our 

mission by establishing performance measures for our strategic goals.

The OIG is aware that external factors may significantly affect planned activities 

and the allocation of resources during any given fiscal year. New legislative 

mandates may necessitate the delay of scheduled projects to ensure that we 

meet new statutory requirements.

MISSION STATEMENT

The OIG promotes economy, efficiency, and effectiveness in the RRB’s 

programs and operations by focusing our audit and investigative efforts on 

protecting the integrity of the RRB’s trust funds and improving the delivery of 

benefits to the railroad community.

VISION STATEMENT

The OIG employs a skilled and professional workforce dedicated to the goals and 

mission of the Office. The OIG:

• conducts audits/evaluations, management reviews, and inspections of the 

RRB’s programs and operations;

• provides recommendations for improvement to RRB management;

• prevents and detects fraud, waste, and abuse in RRB’s programs and 

operations;
Office of Inspector General - Railroad Retirement Board

20

• reviews and makes recommendations regarding existing and proposed 

legislation and regulations relating to the RRB’s programs and operations; 

and

• informs RRB Board Members and the Congress of problems in the RRB’s 

programs and operations.

STRATEGIC GOALS

This plan establishes three strategic goals:

1. Add value to the RRB’s programs and operations.

2. Protect the integrity of the RRB’s programs, operations, and trust funds.

3. Ensure quality and excellence in the OIG’s work and products.

The first goal addresses our independent oversight of the RRB’s programs and 

operations. In support of this goal, we evaluate agency program functions, 

assess program efficiency, and advise management regarding necessary actions 

to improve agency performance.

The second goal involves compliance reviews and enforcement activities to 

identify systemic weaknesses in the RRB’s programs and operations. Our 

objective is to reduce the potential for waste, fraud, and abuse in the RRB’s 

programs and operations and to create a deterrent for future fraudulent activities. 

The third goal focuses on the OIG’s internal operations. We will identify ways to 

streamline audits and investigations by utilizing new technologies, providing staff 

training, and improving planning processes.
Office of Inspector General - Railroad Retirement Board

21

Goal 1 – Add value to the RRB’s programs and operations.

The OIG’s products and services are used by the RRB, the Congress, and other 

interested parties to improve the efficiency, effectiveness, and integrity of the 

RRB’s programs and operations.

We will achieve this goal by:

• Focusing the OIG’s work on major RRB programs and operations. Major 

areas include the annual financial statement audit, information systems and 

security, improper payments, and e-Government initiatives. We will review 

operating performance in both program and administrative functions to ensure 

that agency activities promote efficiency and minimize the potential for fraud, 

waste, and abuse. 

• Providing accurate, objective, and timely information to the RRB, the 

Congress, and other interested parties.

• Promoting actions on the OIG’s recommendations.

Goal 2 – Protect the integrity of the agency’s programs, operations, and 

trust funds.

This goal addresses the third element of the OIG’s vision statement, to prevent 

and detect fraud and abuse in the RRB’s programs and operations. To achieve 

this goal, we will review and investigate allegations of fraud that are referred to 

our office through a variety of internal and external sources. We will also develop 

proactive strategies to identify systemic fraud and abuse and make 

recommendations to address the causes. Based on the recommendations issued 

by this office, the agency has the responsibility to establish the necessary 

controls in its programs and operations.
Office of Inspector General - Railroad Retirement Board

22

We will achieve this goal by:

• Analyzing RRB programs and operations to identify those that are most 

susceptible to fraud and abuse and those programs for which the agency’s 

policing mechanisms are ineffective. We will continue to develop 

traditional information sources, both within and outside the agency, that 

provide information concerning allegations of fraud and abuse.

• Taking timely actions in response to allegations of fraud and abuse. We 

will take a proactive approach to developing electronic information sources 

and methodologies that will allow us to conduct our investigations and 

analysis in the most efficient manner. We will provide the necessary 

support for prosecutors to conduct appropriate criminal or civil actions to 

address allegations of fraud or abuse.

• Providing all interested parties, i.e., prosecutors, agency officials, the 

Congress, and others as warranted, with complete, accurate, and timely 

reports concerning the results of our audit and investigative activities. We 

will alert agency officials and the Congress regarding significant issues 

that will impact agency programs and operations. We will encourage 

publication of judicial results by prosecutors to strengthen the deterrent 

effect of those actions. 

• Conducting timely follow-up actions to ensure the agency addresses our 

systemic issue recommendations. 

• Monitoring progress for all matters referred for judicial action.

• Encouraging prosecutors to complete a satisfaction survey at the 

conclusion of all judicial proceedings to provide honest feedback regarding 

OI’s investigative activities. 
Office of Inspector General - Railroad Retirement Board

23

Goal 3 – Ensure quality and excellence in the OIG’s work and products.

To carry out its mission in a competent and efficient manner, the OIG must have 

a skilled and motivated work force. All staff members must have the knowledge 

and skills required to perform their duties. The OIG’s management will support its 

staff by providing the means to carry out the mission of the office and 

implementing a comprehensive quality assurance program.

We will achieve this goal by:

• Focusing on recruitment and retention of a professional staff that is highly 

skilled and appropriately developed.

• Ensuring that the staff is fully supported with the necessary training, tools, 

services, and direction to carry out their oversight duties effectively and 

efficiently.

• Implementing a comprehensive quality assurance program that ensures 

compliance with OIG policies and procedures; Generally Accepted 

Government Auditing Standards; the Council of the Inspectors General on 

Integrity and Efficiency quality standards for federal Offices of Inspector 

General; and other requirements.

PERFORMANCE BUDGET

The Annual Performance Budget for fiscal year 2020 provides performance 

indicators consistent with our strategic goals. Actual performance is provided in 

the following exhibit for fiscal years 2015 through 2018. Performance for fiscal 

year 2019 reflects the appropriated level of resources provided by the 

Department of Defense and Labor, Health and Human Services, and Education 

Appropriations Act, 2019 and by the Continuing Appropriations Act, 2019 

(Division B of P.L. 115-245, as amended). Fiscal year 2020 performance reflects 

the President’s proposed budget level of $11,000,000. 
Office of Inspector General - Railroad Retirement Board

24

Railroad Retirement Board

Office of Inspector General

FY 2020 Performance Budget

FY 2015

Actual

($8.437M)

FY 2016

Actual

($8.437M)

FY 2017

Actual

($10.00M)

FY 2018

Actual

($11.000M)

FY 2019

Estimate

($11.000M)

FY 2020

Request

($11.000M)

Strategic Goal I: Add value to the RRB’s programs and operations.

The OIG will solicit suggestions for 

audits and reviews for the annual audit 

work plan from 100% of the agency’s 

organizational components.

100% 100% 100% 100% 100% 100%

Seventy-five percent of audit reports will 

be issued within 240 days of entrance, or 

by the mandated reporting deadline.

65% 67% 75% 100% 75% 75%

Agency management agrees with 80% of 

recommendations made in audit, 

evaluation, and inspection reports.

80% 75% 76% 92% 80% 80%

Reports on the progress of corrective 

actions for audit recommendations will 

be issued to the RRB Chairman within 

35 days of the 6 month reporting period.

35 days 35 days 35 days 35 days 35 days 35 days

The OIG will file 100% of reports on time, 

and acknowledge 100% of requests for 

information within three working days.

100% 100% 100% 100% 100% 100%

100% 100% 100% 100% 100% 100%
Office of Inspector General - Railroad Retirement Board

25

Railroad Retirement Board

Office of Inspector General

FY 2020 Performance Budget

FY 2015

Actual

($8.437M)

FY 2016

Actual

($8.437M)

FY 2017

Actual

($10.00M)

FY 2018

Actual

($11.00M)

FY 2019

Estimate

($11.00M)

FY 2020

Request

($11.00M)

Strategic Goal II: Protect the integrity of the RRB’s programs, operations, and trust funds.

Percentage of allegations evaluated and 

submitted for disposition within 30 days of 

receipt. 

90% 93% 93% 90% 90% 92%

Percentage of investigative cases closed, or 

in judicial process, during a fiscal year which 

resulted in a successful action, i.e., criminal 

indictment, criminal conviction, civil judgment 

or settlement, administrative action, or 

monetary recovery. 

36% 36% 44%

Percentage of cases closed during fiscal year 

to total cases open during the fiscal year. 37% 35% 35%

Completed OIG projects to identify fraud 

cases that are not detected through agency 

policing procedures.

7 10 7 9 7 7
Office of Inspector General - Railroad Retirement Board

26

Railroad Retirement Board

Office of Inspector General

FY 2020 Performance Budget

FY 2015

Actual

($8.437M)

FY 2016

Actual

($8.437M)

FY 2017

Actual

($10.00M)

FY 2018

Actual

($11.000M)

FY 2019

Estimate

($11.000M)

FY 2020

Request

($11.000M)

Strategic Goal III: Ensure quality and excellence in the OIG’s work and products.

Percentage of employees meeting the 

training requirements of their profession. 90% 100% 100% 100% 100% 100%

All auditors hold the appropriate 

credentials to satisfy government, CIGIE 

and applicable standards. 

100% 100% 100% 100% 100% 100%

All auditors will receive 80 hours of 

continuing professional education over 2 

years.

100% 100% 100% 100% 100% 100%

Eighty percent of audits, evaluations, and 

inspections are subjected to an internal 

quality assurance review. 

100% 100% 100% 66.7% 100% 100%