FISCAL YEAR 2023

BUDGET JUSTIFICATION

 

 

Office of Inspector General

Railroad Retirement Board
UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

March 28, 2022

The Honorable Kamala D. Harris

President of the Senate

S-212 Capitol Building

Washington, D.C. 20510

Dear Madam President:

We are respectfully submitting the fiscal year 2023 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 2023 will provide $13,269,000 to the Limitation on the OIG for audit 

and investigative activities.

The OIG provides audit services to the RRB and operates a nationwide 

investigative program focused 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.

We are requesting your support for the fiscal year 2023 funding level of 

$13,269,000 to continue our oversight of agency programs. In fiscal year 2023, 

we will conduct audits of agency programs and perform investigations of 

allegations of waste, fraud, and abuse. 

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.
2

Thank you for your support of this proposed budget.

 Sincerely,

 Original Signed

 Martin J. Dickman, Inspector General

Enclosure

cc: The Honorable Shalanda D. Young

 Director, Office of Management and Budget

The Honorable Patrick J. Leahy

Chairman, Senate Committee on Appropriations

The Honorable Richard C. Shelby

Vice Chairman, Senate Committee on Appropriations

The Honorable Patty Murray

Chairwoman, Senate Appropriations Subcommittee on Labor, Health 

 and Human Services, Education, and Related Agencies 

The Honorable Roy Blunt

Ranking Member, Senate Appropriations Subcommittee on Labor, Health 

 and Human Services, Education, and Related Agencies
UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

March 28, 2022

The Honorable Nancy Pelosi

Speaker of the House of Representatives

H-232 Capitol Building

Washington, D.C. 20515

Dear Madam Speaker:

We are respectfully submitting the fiscal year 2023 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 2023 will provide $13,269,000 to the Limitation on the OIG for audit 

and investigative activities.

The OIG provides audit services to the RRB and operates a nationwide 

investigative program focused 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.

We are requesting your support for the fiscal year 2023 funding level of 

$13,269,000 to continue our oversight of agency programs. In fiscal year 2023, 

we will conduct audits of agency programs and perform investigations of 

allegations of waste, fraud, and abuse. 

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.
2

Thank you for your support of this proposed budget.

 Sincerely,

 Original Signed

 Martin J. Dickman, Inspector General

Enclosure

cc: The Honorable Shalanda D. Young

Director, Office of Management and Budget

The Honorable Rosa DeLauro

Chairwoman, House Committee on Appropriations

The Honorable Kay Granger

Ranking Member, House Committee on Appropriations

The Honorable Rosa DeLauro

Chairwoman, House Appropriations Subcommittee on Labor, Health 

 and Human Services, Education, and Related Agencies 

The Honorable Tom Cole

Ranking Member, House Appropriations Subcommittee on Labor, Health 

 and Human Services, Education, and Related Agencies
JUSTIFICATION OF BUDGET ESTIMATES

FISCAL YEAR 2023

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 2023 Budget Request .........................................12

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

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

Fiscal Year 2023 Annual Performance Budget..............................................19
Office of Inspector General for the Railroad Retirement Board

1

EXECUTIVE SUMMARY

The fiscal year 2023 President’s budget for the Office of Inspector General (OIG) 

for the Railroad Retirement Board (RRB) provides $13,269,000 in budget 

authority for 56 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 RRB-OIG 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 RRB-OIG requests $13,269,000 in fiscal year 2023 to continue audit and

investigative coverage of the RRB benefit programs and 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 for the 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 

$13,269,000, to be derived from the railroad retirement accounts and railroad 

unemployment insurance account. 

 
Office of Inspector General for the 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 $13,269,000 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 for the Railroad Retirement Board

4

Authorizing Legislation

FY 2022 FY 2023

Authorizing

Legislation Authorized

Current 

Appropriation Authorized

Appropriation 

Requested

Inspector 

General Act of 

1978, as 

amended

Indefinite $12,650,000 a/ Indefinite $13,269,000

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

Consolidated Appropriations Act, 2022 (P.L. 117-103).

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 for the Railroad Retirement Board

5

Budget Authority and Staffing by Activity

FY 2021 FY 2022 FY 2023

Program by Activity

Actual 

FTEs

Budget 

Amount

Projected 

FTEs

Budget 

Amount

Projected 

FTEs

Budget

Amount

Office of Inspector General

Audit and Investigation 47 $11,500,000 54 $12,650,000 56 $13,269,000

Authorizing Legislation $11,500,000 a/ $12,650,000 b/ $13,269,000

a/ Represents the level of funding provided by the Consolidated 

Appropriations Act, 2021 (P.L. 116-260).

b/ Represents the level of funding provided by the Consolidated 

Appropriations Act, 2022 (P.L. 117-103).
Office of Inspector General for the Railroad Retirement Board

6

Budget Authority by Object Classification

Limitation on the Office of Inspector General a/

Direct Obligations by Object Class

FY 2021 

ACTUAL 

EXPENSES

FY 2022

ESTIMATE 

FY 2023

BUDGET 

ESTIMATE

FY 2023 vs. 

FY 2022

INCREASE/

(DECREASE) d/

Personnel Compensation:

Full-time permanent $4,955,344 $5,700,000 $6,000,000 b/ $300,000

Other than full-time permanent 0 53,000 15,000 (38,000)

Other personnel compensation 122,704 155,000 160,000 5,000

Total Personnel Compensation 5,078,048 5,908,000 6,175,000 267,000

Personnel Benefits: Civilian 2,232,588 2,600,000 $2,730,000 b/ 130,000

Travel and transportation of persons 211,849 250,000 270,000 20,000

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

Communications, utilities, and miscellaneous 

charges 51,634 60,000 65,000 5,000

Other services 2,506,708 2,925,000 3,100,000 175,000

Supplies and materials 39,723 52,000 50,000 (2,000)

Equipment 473,909 555,000 579,000 24,000

Total Direct Obligations $10,894,459 $12,650,000 $13,269,000 619,000

Unobligated Balance 605,541 0 0 0

Total Budget Authority $11,500,000 $12,650,000 c/ $13,269,000 619,000

Total Full-Time Equivalent Usage 47 54 56 e/ 2

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/ Fiscal year 2023 salary and benefit estimates include a cost of living adjustment of 4.6% per annum from January, 2023 through

September, 2023.

c/ Represents the appropriated level of funding provided by the Consolidated Appropriations Act, 2022 (P.L. 117-103). 

d/ Fiscal year 2023 versus fiscal year 2022 personnel compensation and benefits change represents fully-staffed salary and benefit costs for 

56 FTEs.

e/ Fiscal year 2023 FTEs have been reduced from an anticipated level of 58 to 56 due to the expected use of contractual services. 
Office of Inspector General for the Railroad Retirement Board

7

Contractual Services

FY 2021

ACTUAL

FY 2022 

ESTIMATE

FY 2023

ESTIMATE

Contracts

Security investigations $35,000 $35,000 $35,000

OPM personnel consulting 96,000 125,000 125,000

Federal Occupational Health 37,000 20,000 20,000

GSA Renovation 30,000 0 0

Network Assessment 0 50,000 0

Information technology support 

services 110,000 115,000 120,000

IT Licenses & Maintenance 159,000 175,000 200,000

Data analytics 165,000 175,000 200,000

Other Services 238,000 200,000 200,000

Contract Audits 1,120,000 900,000 1,500,000

Statement of Social Insurance Audit 63,000 52,000 53,000

Contract Program Total $2,053,000 $1,847,000 $2,453,000
Office of Inspector General for the Railroad Retirement Board

8

Personnel Summary

FY 2021

ACTUAL

FY 2022

ESTIMATE

FY 2023

ESTIMATE

IG 1 1 1

IG Subtotal 1 1 1

ES-00 3 3 3

ES Subtotal 3 3 3

GS/GM-15 0 1 0

GS/GM-14 8 8 8

GS/GM-13 14 11 11

GS-12 10 15 15

GS-11 10 7 14

GS-10 0 0 0

GS-09 1 8 4

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

GS Subtotal 43 50 52

56

End of Year: Total full-time

permanent employment 47 54

Full-time equivalent (FTE) usage 47 54 56

END OF YEAR

Average ES salary $184,536 $189,463 $198,178

Average GS/GM grade 12.39 11.98 12.02

Average GS/GM salary

without premium pay $112,688 $115,697 $121,019

Average GS/GM salary

with premium pay $122,408 $125,676 $131,457
Office of Inspector General for the Railroad Retirement Board

9

Amounts Available for Obligation

Financing FY 2021

Actual

FY 2022

Estimate

FY 2023

Estimate

Obligations from new authority $10,894,459 $12,650,000 $13,269,000

Plus: Unobligated balance 605,541 0 0

Limitation on the Office of Inspector General $11,500,000 a/ $12,650,000 b/ $13,269,000

Relation of direct obligations to outlays

Obligations incurred $10,894,459 $12,650,000 $13,269,000

Obligated balance, start of year --- 2,021,839 2,021,839

Obligated balance, end of year (2,021,839) (2,021,839) (2,021,839)

Direct Outlays $8,872,620 $12,650,000 $13,269,000

a/ Represents the level of funding provided by the Further Consolidated Appropriations Act, 2021 (P.L. 116-94).

b/ Represents the level of funding provided by the Consolidated Appropriations Act, 2022 (P.L. 117-103).

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 for the 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 ---- ---- $11,000,000 l/

2021 $11,500,000 ---- ---- $11,500,000 m/

2022 $12,650,000 $12,650,000 n/

2023 $13,269,000

a/ Consolidated Appropriations Act, 2009 (P.L. 111-8).

b/ Consolidated Appropriations Act, 2010 (P.L. 111-117).

c/ Full-Year Continuing Appropriations Act, 2011 (P.L. 112-10), less $16,372 rescinded in 

accordance with P.L. 112-10.

d/ 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/ Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6).

f/ Consolidated Appropriations Act, 2014 (P.L. 113-76).

g/ Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235).

h/ Consolidated Appropriations Act, 2016 (P.L. 114-113).

i/ Consolidated Appropriations Act, 2017 (P.L. 115-31).

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

k/ Consolidated Appropriations Act, 2019 (P.L. 116-6).

l/ Consolidated Appropriations Act, 2020 (P.L. 116-94).

m/ Consolidated Appropriations Act, 2021 (P.L. 116-260).

n/ Consolidated Appropriations Act, 2022 (P.L. 117-103).
Office of Inspector General for the 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 48 0 0.0% -51 -51.5%

2020 48 0 0.0% -51 -51.5%

2021 47 -1 -2.1% -52 -52.5%

2022 54 a/ 7 14.9% -45 -45.5%

2023 56 a/ 2 3.7% -43 -43.4%

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

12

EXPLANATION OF THE FISCAL YEAR 2023 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 2021, the RRB paid approximately $13.3 billion in 

retirement and survivor benefits to 519,000 beneficiaries, including approximately 

$887 million in disability annuities. It also paid $156.9 million in regular 

unemployment and sickness insurance benefits. The RRB paid approximately 

$112.7 million for extended unemployment and sickness benefits payable under 

the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The 

number of beneficiaries was about 17,200 for unemployment benefits and about 

24,500 for sickness benefits.

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, 2021, there were approximately 447,150 such beneficiaries 

enrolled in the Medicare Part B program through the RRB. During fiscal year 

2021, the RRB’s separate Part B carrier paid approximately $920 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 2023 Performance Budget, including the President’s proposed 

administrative budget and projected performance statistics for fiscal years 2021

through 2023, is included in this budget justification.
Office of Inspector General for the Railroad Retirement Board

13

The OIG is requesting $13,269,000 in fiscal year 2023 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

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 fiscal year 2023 priority 

areas 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 2023, 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. Additionally, 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 seven broad areas of potential audit coverage:

• Financial Accountability

• Railroad Retirement Act and Railroad Unemployment Insurance Act 

Benefit Program Operations

• Information Technology

• Railroad Medicare Program Operations

• Disability Program Integrity

• Compliance Audits

• Effectiveness and Efficiency of Agency Operations
Office of Inspector General for the Railroad Retirement Board

14

During fiscal year 2023, 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

• Evaluation of information security pursuant to the Federal Information 

Security Modernization Act of 2014 (FISMA)

• Audit of the RRB’s compliance with the Payment Integrity Information Act 

of 2019

• Review of IG requirements for Government Charge Card Abuse and 

Prevention Act of 2012

• Identification of performance and management challenges for fiscal year 

2022

• 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 fiscal year 2021, nearly 71 percent of direct audit time was 

spent completing mandated audits, and this percent is expected to remain 

consistent in fiscal year 2023.

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 six major challenges facing

the RRB:

1. Agency Disability Integrity 

2. Information Technology Security and System Modernization

3. Management of Railroad Medicare

4. Payment Accuracy and Transparency

5. Financial Management and Reporting Issues

6. Compliance
Office of Inspector General for the Railroad Retirement Board

15

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

mandates and provide additional audit oversight.

During fiscal year 2023, OA will complete the audit of the RRB’s fiscal year 2022

financial statements and begin its audit of the agency’s fiscal year 2023 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 and may seek a contractor for the financial 

statement audit in fiscal year 2023. For the FISMA audits, OA hired a contractor 

for fiscal year 2022 and will seek a contractor for fiscal year 2023. In addition, OA 

conducts audits of individual information systems that are required to support an 

annual evaluation of federal information system controls. 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, 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 
Office of Inspector General for the Railroad Retirement Board

16

judgments and penalties, or the recommendation for administrative recovery of 

program benefit funds.

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 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 2021

Civil

Judgments Indictments/Informations Convictions

Financial

Accomplishments

15 16 25 $64.3 million

During fiscal year 2021, OI opened 101 new cases and closed 90. As of 

September 30, 2021, OI had cases open in 40 states and the District of 

Columbia, with an estimated fraud loss totaling over $348 million. This potential 

fraud amount reflects programs administered exclusively by the RRB and 

potential fraud amounts from other federal programs, such as Medicare, which 

have been identified during OI’s joint investigative work. Potential fraud amounts 

associated with joint casework may not necessarily be delineated by agency. OI 

anticipates an ongoing caseload of approximately 290 investigations in fiscal 

year 2023.
Office of Inspector General for the 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 30 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.

OI will continue to work joint cases with other Offices of Inspector General and 

federal law enforcement agencies that have responsibility for healthcare fraud 

matters. Railroad Medicare fraud investigations currently represent 

approximately 19 percent of OI’s total caseload and more than $329.7 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 allegations of railroad employees collecting 

unemployment or sickness insurance benefits while working and receiving wages 

from an employer. Unemployment/sickness insurance fraud cases currently 

constitute 33 percent of our investigative caseload. This increase is attributed to 

fraud referrals involving CARES Act funds. 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.
Office of Inspector General for the Railroad Retirement Board

18

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

program to prosecute cases that do not meet criminal prosecution thresholds. 

In fiscal year 2023, 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 2023, 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 for the Railroad Retirement Board

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FISCAL YEAR 2023 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 2023 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 for the Railroad Retirement Board

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• 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 the following 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 for the Railroad Retirement Board

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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 OIG 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 for the Railroad Retirement Board

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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 for the Railroad Retirement Board

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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 2023 provides performance 

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

the following exhibit for fiscal years 2018 through 2021. Performance for fiscal 

year 2022 reflects the appropriated level of resources provided by the

Consolidated Appropriations Act, 2022 (P.L. 117-103). Fiscal year 2023

performance reflects the President’s proposed budget level of $13,269,000. 
Office of Inspector General for the Railroad Retirement Board

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Railroad Retirement Board

Office of Inspector General

FY 2023 Performance Budget

FY 2018

Actual

($11.000M)

FY 2019

Actual

($11.000M)

FY 2020

Actual

($11.000M)

FY 2021

Actual

($11.500M)

FY 2022

Estimate

($12.650M)

FY 2023

Request

($13.269M)

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.

100% 79% 80% 65% 75% 75%

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%
Office of Inspector General for the Railroad Retirement Board

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Railroad Retirement Board

Office of Inspector General

FY 2023 Performance Budget

FY 2018

Actual

($11.000M)

FY 2019

Actual

($11.000M)

FY 2020

Actual

($11.000M)

FY 2021

Actual

($11.500M)

FY 2022

Estimate

($12.650M)

FY 2023

Request

($13.269M)

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. 

93% 94% 90% 90% 90% 90%

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. 

44%

Percentage of cases closed during 

fiscal year to total cases open during 

the fiscal year.

32% 38% 24% 35% 30%

Completed OIG projects to identify 

fraud cases that are not detected 

through agency policing procedures.

7 8 7 7 7 8
Office of Inspector General for the Railroad Retirement Board

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Railroad Retirement Board

Office of Inspector General

FY 2023 Performance Budget

FY 2018

Actual

($11.000M)

FY 2019

Actual

($11.000M)

FY 2020

Actual

($11.000M)

FY 2021

Actual

($11.500M)

FY 2022

Estimate

($12.650M)

FY 2023

Request

($13.269M)

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

Percentage of employees meeting the 

training requirements of their 

profession.

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