UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

 

 February 8, 2018

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 2019 Congressional Budget 

Justification for the Office of Inspector General of the Railroad Retirement 

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

Management and Budget (OMB) Circular No. A-11. The President’s 

proposed budget for fiscal year 2019 will provide $8,437,000 to the 

Limitation on the Office of Inspector General for audit and investigative 

activities.

The RRB Office of Inspector General (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 agency and operates a nationwide investigative program to address 

allegations of fraud and employee misconduct.

We are requesting your support for the fiscal year 2019 funding level 

of $8,437,000 to continue our oversight of agency programs. In fiscal 

year 2019, 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 agency 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

Martin 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

 

 February 8, 2018

The Honorable Paul D. Ryan 

Speaker of the House of Representatives

Office of the Speaker

United States Capitol

Washington, DC 20515-6501

Dear Mr. Speaker:

We are respectfully submitting the fiscal year 2019 Congressional Budget 

Justification for the Office of Inspector General of the Railroad Retirement 

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

Management and Budget (OMB) Circular No. A-11. The President’s 

proposed budget for fiscal year 2019 will provide $8,437,000 to the 

Limitation on the Office of Inspector General for audit and investigative 

activities.

The RRB Office of Inspector General (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 agency and operates a nationwide investigative program to address 

allegations of fraud and employee misconduct.

We are requesting your support for the fiscal year 2019 funding level 

of $8,437,000 to continue our oversight of agency programs. In fiscal 

year 2019, 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 agency 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 

Martin 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 2019

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 2019 Budget Request.................................................... 12

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

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

Fiscal Year 2019 Annual Performance Budget ........................................................ 18
1

OFFICE OF INSPECTOR GENERAL

RAILROAD RETIREMENT BOARD

EXECUTIVE SUMMARY

The fiscal year 2019 President’s budget for the Railroad Retirement Board – Office of 

Inspector General (RRB-OIG) provides $8,437,000 in budget authority for 45 full-time 

equivalent (FTEs) staff and miscellaneous expenses. With this funding, the RRB-OIG will 

endeavor to meet the productivity goals set forth in its Performance Budget.

The RRB-OIG will focus its efforts on: (1) conducting independent audits and 

investigations relating to agency programs and operations; (2) promoting economy, 

efficiency and effectiveness; (3) detecting fraud and abuse; and (4) keeping the Board 

Members and Congress informed about problems and recommending corrective actions 

concerning RRB operations.

The RRB-OIG is requesting $8,437,000 in fiscal year 2019 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. 
2

 JUSTIFICATION OF ESTIMATES

 

 The Administration’s 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 $8,437,000, to be derived from the railroad retirement accounts and railroad 

unemployment insurance account. 

 

 Note. – A full-year 2018 appropriation for this account was not enacted at the time the 

budget was prepared; therefore, the budget assumes this account is operating under 

the Continuing Appropriations Act, 2018 (Division D of P.L. 115-56, as amended). The 

amounts included for fiscal year 2018 reflect the annualized level provided by the 

continuing resolution. 
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 

$8,437,000, 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 Account.
 4

Current Appropriation

Legislation Authorized Estimate Authorized Requested

Indefinite $10,000,000 a/ Indefinite $8,437,000

a/ This amount reflects the annualized level of funding provided by the Continuing Appropriations 

 Act, 2018 (Division D of P.L. 115-56, 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.

Authorizing legislation - Inspector 

General Act of 1978, as amended

FY 2018 FY 2019

Authorizing Legislation
 5

ACTUAL BUDGET PROJECTED BUDGET PROJECTED BUDGET

FTES AMOUNT FTES AMOUNT FTES AMOUNT

Program by Activity

Office of Inspector General

Audit and Investigation 48 $10,000,000 52 $10,000,000 45 $8,437,000

Authorizing Legislation $10,000,000 a/ $10,000,000 b/ $8,437,000

. .

a/ Represents the level of funding provided by the Consolidated Appropriations Act, 2017 (P.L. 115-31).

b/ Reflects the annualized level of funding provided by the Continuing Appropriations Act, 2018 (Division D of 

of P.L. 115-56, as amended). 

BUDGET AUTHORITY AND STAFFING BY ACTIVITY

FY 2017 FY 2018 FY 2019
6

FISCAL YEAR 2017 

ACTUAL EXPENSES

FISCAL YEAR 2018 

ESTIMATE

FISCAL YEAR 2019 

BUDGET ESTIMATE a/

Limitation on the Office of Inspector General

Direct Obligations by Object Class

Personnel Compensation:

Full-time permanent $4,897,400 $5,625,200 $4,966,000 b/ ($659,200)

Other than full-time permanent 79,800 70,000 70,000 b/ 0

Other personnel compensation 230,000 101,000 101,000 0 ---------------- ---------------- ---------------- ----------------

 Total Personnel Compensation 5,207,200 5,796,200 5,137,000 (659,200)

Personnel Benefits: Civilian 1,857,200 2,158,800 1,909,000 b/ (249,800)

Benefits for former personnel 0 0 0 0

Travel and transportation of persons 251,700 350,000 325,000 (25,000)

Rental Payments to GSA 300,000 300,000 300,000 0

Communications, utilities, and 0

 miscellaneous charges 68,800 89,000 77,000 (12,000)

Consulting Services 0 0 0 0

Other Services 753,600 1,077,000 485,000 c/ (592,000)

Supplies and materials 44,800 54,000 54,000 0

Equipment 635,700 175,000 150,000 (25,000) ---------------- ---------------- ---------------- ----------------

Total Direct Obligations $9,119,000 $10,000,000 $8,437,000 ($1,563,000)

Unobligated Balance 881,000 0 0 0 ---------------- ---------------- ---------------- ----------------

Total Budget Authority $10,000,000 $10,000,000 d/ $8,437,000 e/ ($1,563,000)

Total Full-Time Equivalent Usage 48 52 45 (7)

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

Medicare & Medicaid Services.

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

c/ Includes $60,000 for RRB-OIG training in FY 2019, which will satisfy our minimum training requirements, and $18,561 (0.22% of the budget estimate) 

for support of the Council of the Inspectors General on Integrity and Efficiency (CIGIE) pursuant to the Inspector General Reform Act 

of 2008 (P.L. 110-409). 

d/ Reflects the annualized level of funding provided by the Continuing Appropriations Act, 2018 (Division D of P.L. 115-56, as amended). 

e/ The RRB Office of Inspector General requested $11,525,000 in its FY 2019 budget submission to OMB, including funding for 56 FTEs and contract 

 funding for the financial audit. The RRB OIG request included $70,000 for training. The request also reflected policy pay increase assumptions of

 1.90% effective January 2018 and 2.0% effective January 2019.

BUDGET AUTHORITY BY OBJECT CLASSIFICATION

FY 2019 vs. FY 2018 

INCREASE/ 

(DECREASE)
 7

FY 2017 FY 2018 FY 2019

Program by Activity ACTUAL ESTIMATE ESTIMATE

Contractual Services

Contracts

OPM security investigations $23,800 $30,000 $22,500

Information technology support services 108,320 110,000 75,000

OIG network assessment 47,400 0 0

Microsoft Enterprise 54,348 55,000 55,000

ACL Analytics - data analytics 15,686 0 0

Tripwire security software 11,842 0 0

Audit of Statement of Social Insurance 41,000 50,000 50,000

Contract Program Total $302,396 $245,000 $202,500

CONTRACTUAL SERVICES
 8

 RAILROAD RETIREMENT BOARD - OFFICE OF INSPECTOR GENERAL 

FY 2017 FY 2018 FY 2019

ACTUAL ESTIMATE 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 8 8 8

GS/GM-13 19 20 17

GS-12 12 12 10

GS-11 2 2 2

GS-10 0 0 0

GS-09 2 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 45 46 41

End of Year: total full-time

permanent employment 49 50 45

Full-time equivalent (FTE) usage 48 52 45

END OF YEAR

Average ES Salary $183,850 $186,400 $188,300

Average GS/GM Grade 12.73 12.74 12.76

Average GS/GM Salary

 without Premium Pay $108,222 $110,400 $111,500

Average GS/GM Salary

 with Premium Pay $118,873 $121,200 $122,400

PERSONNEL SUMMARY
 9

Office of Inspector General

FY 2017 FY 2018 FY 2019

Financing actual estimate estimate

Obligations from new authority $9,119,000 $10,000,000 $8,437,000

Plus: Unobligated balance 881,000 0 0

Limitation on the Office of Inspector General $10,000,000 a/ $10,000,000 b/ $8,437,000

Relation of direct obligations to outlays

Obligations incurred $9,119,000 $10,000,000 $8,437,000

Obligated balance, start of year --- 1,088,000 1,088,000

Obligated balance, end of year (1,088,000) (1,088,000) (1,088,000)

Direct Outlays $8,031,000 $10,000,000 $8,437,000

a/ Represents the resources provided by the Consolidated Appropriations Act, 2017 (P.L 115-31).

b/ Reflects the annualized level of funding provided by the Continuing Appropriations Act, 2018 (Division D

 of P.L. 115-56, 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.

LIMITATION ON THE OFFICE OF INSPECTOR GENERAL

AMOUNTS AVAILABLE FOR OBLIGATION
 10

PRESIDENT'S

FISCAL BUDGET HOUSE SENATE

YEAR TO CONGRESS ALLOWANCE 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 ---- ---- $10,000,000 j/

2019 $8,437,000

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/ Reflects the annualized level of funding provided by the Continuing Appropriations Act, 2018 

(Division D of P.L. 115-56, as amended). 

APPROPRIATIONS HISTORY TABLE
STAFFING HISTORY

11

Cumulative 

Percent Cumulative percent change

Fiscal Total change from FTE since fiscal

Year FTEs previous year Changes 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 52 a/ 4 8.3% -47 -47.5%

2019 45 a/ -7 -13.5% -54 -54.5%

a/ Reflects estimated FTEs to be used.

Railroad Retirement Board - Office of Inspector General

Actual and Projected Full-Time Equivalent Employment

Change 

from 

previous 

year
12

OFFICE OF INSPECTOR GENERAL

RAILROAD RETIREMENT BOARD

EXPLANATION OF THE FISCAL YEAR 2019 REQUEST

The Office of Inspector General (OIG) at 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 Railroad 

Retirement Board's (RRB) mission to pay accurate and timely benefits. During fiscal 

year (FY) 2017 the RRB paid approximately $12.5 billion in retirement and survivor 

benefits to 548,000 beneficiaries, including about $1.2 in disability annuities. It also paid 

$105.4 million in unemployment and sickness insurance benefits to about 12,000 

unemployment insurance beneficiaries and 16,000 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, 2017, 

there were about 456,000 such beneficiaries enrolled in the Medicare Part B program 

through the RRB. During FY 2017, the RRB’s separate Part B carrier paid 

approximately $850 million in benefits.

The OIG conducts audits, management reviews, 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 FY 2019 Performance Budget, including the President's proposed administrative 

budget and projected performance statistics for fiscal years 2018 and 2019, is included 

in this budget justification. 

The OIG is requesting $8,437,000 in FY 2019 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. 
13

The Office of Inspector General conducts its operations through two major components: 

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

FY 2019 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 FY 2019, 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 FY 2019, 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

• RRA and 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 FY 2019, 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 

Management Act of 2014 (FISMA)

• Audit of the RRB’s Compliance with the Improper Payments Elimination and

• Recovery Act of 2010

• Audit required under the Digital Accountability and Transparency Act of 2014
14

• Review of IG Requirements for Government Charge Card Abuse and Prevention 

Act of 2012

• Identification of Performance and Management Challenges for FY 2019

• 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 2017, nearly 65 percent of direct audit time was spent completing 

mandated audits, and this number will be consistent, if not more, in FY 2019 as audit 

work related to the Data Act must be completed and there is continued expansion of 

FISMA reporting requirements. These are in addition to the significant resource 

investment in completing the annual financial statement audit, semiannual reporting, 

improper payment audit activities, and information technology security work. This 

mandated work results in important audit findings and agency oversight but also 

increasingly limits other audits that can be undertaken without an increase in resources. 

OA currently reports on seven major challenges facing the RRB. An increase in 

resources would allow OA to provide additional audit oversight to these areas, which

represent billions in taxpayer dollars, and still meet the important mandates of the 

Congress.

During FY 2019, OA will complete the audit of the RRB’s FY 2018 financial statements 

and begin its audit of the agency’s FY 2019 financial statements. OA contracts with a 

consulting actuary for technical assistance in auditing the RRB’s Statement of Social 

Insurance, which became basic financial information effective for FY 2006. In addition to 

performing the annual evaluation of information security, OA also conducts audits of 

individual computer application systems that are required to support the annual FISMA 

evaluation. Our work in this area is targeted toward the identification and elimination of 

security deficiencies and system vulnerabilities, 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 annually. 
15

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 penalties, administrative sanctions, and the recovery of program 

benefit funds for any program administered by the RRB. 

OI initiates cases based on information from a variety of sources. 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 Office of Audit. 

Fraud referrals from the RRB have reduced over the last several fiscal years. 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. 

Ol Investigative Results for FY 2017

Civil Judgments IndIctments/Informations Convictions Financial Accomplishments

 11 29 37 $149,060,851 1

 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 the investigation.
16

OI anticipates an ongoing caseload of approximately 280 investigations in FY 2019. 

During FY 2017, OI opened 211 new cases and closed 155. As of September 30, 2017, 

OI had cases open in 40 states and the District of Columbia, with estimated fraud losses 

totaling over $553 million. 

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 37% of Ol'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 require sizeable resources for travel by special agents to conduct surveillance, 

or 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 also 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 20% of OI’s total 

caseload and more than $334 million in 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 also 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 23% of the total caseload 

of our investigators.

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 also use the Department of Justice's Affirmative Civil Enforcement 

Program to recover trust fund monies from cases that do not meet U.S. Attorney's 

guidelines for criminal prosecution. 
17

In FY 2019, 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 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.

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 will also investigate complaints involving administrative irregularities and any alleged 

misconduct by agency employees. 

Conclusion

In FY 2019, 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 the 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. 
 18

RAILROAD RETIREMENT BOARD 

OFFICE OF INSPECTOR GENERAL

FISCAL 2019 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 trust funds and 

improving the delivery of benefits to the railroad community. The OIG has developed 

the Fiscal Year 2019 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 the RRB’s programs and 

operations;

• 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.
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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.

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.
 20

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, 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.

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. 

 
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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 FY 2019 provides performance indicators 

consistent with our strategic goals. Actual performance is provided in the following 

exhibit for fiscal years 2014 through 2017. Performance for fiscal year 2018 reflects the

annualized level of resources provided by the Continuing Appropriations Act, 2018

(Division D of P.L.115-56, as amended), and fiscal year 2019 performance reflects the 

President’s proposed budget level of $8,437,000. 
22

Railroad Retirement Board

Office of Inspector General

FY 2019 Performance Budget

FY 2014

Actual

($8.272M)

FY 2015

Actual

($8.437M)

FY 2016

Actual

($8.437M)

FY 2017

Actual

($10.000M)

FY 2018

Estimate

($10.000M)

FY 2019

Request 

Level

($8.437M)

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. 67% 65% 67% 75% 75% 65%

Agency management agrees with 80% of 

recommendations made in audit, evaluation, and 

inspection reports. 

86% 80% 75% 76% 75% 75%

Reports on the progress of corrective actions for 

audit recommendations will be issued to the RRB 

Chairman within 35 days of the six 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%

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% 90% 93% 93% 90% 90%
23

Railroad Retirement Board

Office of Inspector General

FY 2019 Performance Budget

FY 2014

Actual

($8.272M)

FY 2015

Actual

($8.437M)

FY 2016

Actual

($8.437M)

FY 2017

Actual

($10.000M)

FY 2018

Estimate

($10.000M)

FY 2019

Request 

Level

($8.437M)

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 

42% 36% 36% 44% 30% 30%

The OIG will complete 4 projects to identify fraud 

cases that are not detected through agency policing 

procedures.

5 7 10 7 7 7

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% 90% 100% 100% 100% 100%

All auditors hold the appropriate credentials to satisfy 

government, PCIE 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% 100% 100% 100%