FISCAL YEAR 2024 

BUDGET JUSTIFICATION 

Office of Inspector General

Railroad Retirement Board
UNITED ST ATES RAILROAD RETIREMENT BOARD 

OFFICE OF INSPECTOR GENERAL 

The Honorable Kamala D. Harris 

President of the Senate 

S-212 Capitol Building

Washington, D.C. 20510

Dear Madam President: 

March 13, 2023 

We respectfully submit the fiscal year 2024 Congressional Budget Justification for 

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

This justification was prepared per Office of Management and Budget Circular 

No. A-11. The President's proposed budget for fiscal year 2024 will provide 

$14,600,000 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 RR B'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 request your support for the fiscal year 2024 funding level of $14,600,000 to 

continue our oversight of agency programs. In fiscal year 2024, we will conduct 

audits of agency programs and perform investigations of allegations of waste, 

fraud, and abuse. 

This office will continue to use all available resources efficiently 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. 

Enclosure 

cc: The Honorable Shalanda D. Young 

Sincerely, 

Director, Office of Management and Budget 

The Honorable Patty Murray 

Chair, Senate Committee on Appropriations 

The Honorable Susan Collins 

Vice Chair, Senate Committee on Appropriations 

The Honorable Tammy Baldwin 

Chair, Senate Appropriations Subcommittee on Labor, Health 

and Human Services, Education, and Related Agencies 

The Honorable Shelley Moore Capito 

Ranking Member, Senate Appropriations Subcommittee on Labor, Health 

and Human Services, Education, and Related Agencies 

Original Signed by

Martin J. Dickman

Inspector General

Railroad Retirement Board 
UNITED ST A TES RAILROAD RETIREMENT BOARD 

OFFICE OF INSPECTOR GENERAL 

The Honorable Kevin McCarthy 

Speaker of the House of Representatives 

H-232 Capitol Building

Washington, D.C. 20515

Dear Mr. Speaker: 

March 13, 2023 

We respectfully submit the fiscal year 2024 Congressional Budget Justification for 

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

This justification was prepared per Office of Management and Budget Circular 

No. A-11. The President's proposed budget for fiscal year 2024 will provide 

$14,600,000 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 request your support for the fiscal year 2024 funding level of $14,600,000 to 

continue our oversight of agency programs. In fiscal year 2024, we will conduct 

audits of agency programs and perform investigations of allegations of waste, 

fraud, and abuse. 

This office will continue to use all available resources efficiently 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. 

Enclosure 

cc: The Honorable Shalanda D. Young 

Sincerely, 

Director, Office of Management and Budget 

The Honorable Kay Granger 

Chairwoman, House Committee on Appropriations 

The Honorable Rosa Delaura 

Ranking Member, House Committee on Appropriations 

The Honorable Robert Aderholt 

Chair, House Appropriations Subcommittee on Labor, Health 

and Human Services, Education, and Related Agencies 

The Honorable Rosa Delaura 

Ranking Member, House Appropriations Subcommittee on Labor, Health 

and Human Services, Education, and Related Agencies 

Original Signed by

Martin J. Dickman

Inspector General

Railroad Retirement Board
JUSTIFICATION OF BUDGET ESTIMATES

FISCAL YEAR 2024

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 2024 Budget Request .........................................12

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

Office of Investigations............................................................................. 16 

Fiscal Year 2024 Performance Budget..........................................................20
Office of Inspector General for the Railroad Retirement Board

1 

EXECUTIVE SUMMARY

The fiscal year 2024 President’s budget for the Office of Inspector General (OIG) 

for the Railroad Retirement Board (RRB) provides $14,600,000 in budget 

authority for 56 full-time equivalents (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 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 $14,600,000 in fiscal year 2024 to continue audit and 

investigative coverage of the RRB benefit programs, identify program 

weaknesses and reduce fraud in agency programs. Investigative resources will 

be devoted to maintaining the integrity of RRB programs by investigating waste, 

fraud, and abuse. The office will focus resources on operational areas with the 

greatest impact on RRB activities and related customer service.
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 

$14,600,000, 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 $14,600,000 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 2023 FY 2024

Authorizing

Legislation Authorized

Current 

Appropriation Authorized

Appropriation

Requested

Inspector 

General Act of 

1978, as 

amended

Indefinite $14,000,000 a/ Indefinite $14,600,000 

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

Consolidated Appropriations Act, 2023 (P.L. 117-328).

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 2022 FY 2023 FY 2024

Program by Activity

Actual 

FTEs

Budget 

Amount

Projected 

FTEs

Budget 

Amount

Projected 

FTEs

Budget

Amount

Office of Inspector General 

Audit and Investigation 45 $12,650,000 56 $14,000,000 56 $14,600,000

Authorizing Legislation $12,650,000 a/ $14,000,000 b/ $14,600,000

a/ Represents the level of funding provided by the Consolidated 

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

b/ Represents the level of funding provided by the Consolidated 

Appropriations Act, 2023 (P.L. 117-328).
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 2022 

ACTUAL 

EXPENSES

FY 2023 

ESTIMATE 

FY 2024 

BUDGET 

ESTIMATE

FY 2024 vs. 

FY 2023

INCREASE/

(DECREASE) d/

Personnel Compensation:

Full-time permanent $4,756,008 $5,800,000 $6,075,600 b/ $275,600

Other than full-time permanent 42,519 50,000 53,000 3,000

Other personnel compensation 112,177 125,000 132,000 7,000

Total Personnel Compensation 4,910,704 5,975,000 6,260,600 285,600

Personnel Benefits: Civilian 2,208,432 2,450,000 2,577,400 b/ 127,400

Travel and transportation of persons 278,276 340,000 360,000 20,000

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

Communications, utilities, and miscellaneous 

charges 57,606 82,000 87,000 5,000

Other services 3,893,413 4,090,000 4,250,000 160,000

Supplies and materials 44,554 99,000 100,000 1,000

Equipment 395,990 664,000 665,000 1,000

Total Direct Obligations $12,088,975 $14,000,000 $14,600,000 $600,000

Unobligated Balance 561,025 0 0 0

Total Budget Authority $12,650,000 $14,000,000 c/ $14,600,000 $600,000

Total Full-Time Equivalent Usage 45 56 56 -0-

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/ Fiscal year 2024 salary and benefit estimates include a cost of living adjustment of 5.2% per annum from January, 

2024 through September, 2024.

c/ Represents the appropriated level of funding provided by the Consolidated Appropriations Act, 2023 (P.L. 117-328). 

d/ Fiscal year 2024 versus fiscal year 2023 personnel compensation and benefits change represents fully-staffed salary 

and benefit costs for 56 FTEs.
Office of Inspector General for the Railroad Retirement Board

7 

Contractual Services

FY 2022

ACTUAL

FY 2023

ESTIMATE

FY 2024

ESTIMATE

Contracts

Security investigations $14,219 $30,000 $30,000

OPM personnel consulting 200,000 200,000 200,000

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

GSA Renovation 59,938 0 0

Information technology support 

services 120,000 151,000 160,000

IT Licenses & Maintenance* 221,156 250,000 262,500

Data analytics 347,902 356,300 375,000

Other Services** 124,776 75,000 50,000

Contract Audits 2,516,300 2,125,000 2,230,000

Contract Program Total $3,624,291 $3,207,300 $3,327,500

*Total cybersecurity spending is estimated as $82,200 for each fiscal year and

composed of the following NIST categories: (a) Identify- $28,440, (b) Protect - $7,220,

(c) Detect - $28,440, (e) Respond - $6,300 and (f) Recover - $11,800.

** Per E.O. 14074, fiscal years 2023 and 2024 include body-worn camera estimates.
Office of Inspector General for the Railroad Retirement Board

8 

Personnel Summary

FY 2022

ACTUAL

FY 2023

ESTIMATE

FY 2024

ESTIMATE

IG 1 1 1

IG Subtotal 1 1 1

ES-00 2 3 3

ES Subtotal 2 3 3

GS-15 1 2 2

GS-14 8 8 8

GS-13 11.5 11 11

GS-12 14 14 18

GS-11 3 4 4

GS-10 0 0 0

GS-09 1 5 4

GS-08 0 0 0

GS-07 0 3 3

GS-06 0 0 0

GS-05 0 3 0

GS-04 0 2 2

GS-03 0 0 0

GS-02 0 0 0

GS-01 0 0 0

GS Subtotal 38.5 52 52

56 

End of Year: Total full-time 

permanent employment 41 56 

Full-time equivalent (FTE) usage 45 56 56

END OF YEAR

Average ES salary $194,740 $192,700 $202,720

Average GS grade 12.64 11.27 11.7

Average GS salary

without premium pay $114,001 $106,599 $115,459

Average GS salary

with premium pay $128,294 $130,689 $126,095
Office of Inspector General for the Railroad Retirement Board

9 

Amounts Available for Obligation

Financing FY 2022

Actual

FY 2023

Enacted

FY 2024

Estimate

Obligations from new authority $12,088,975 $14,000,000 $14,600,000

Plus: Unobligated balance 561,025 0 0 

Limitation on the Office of Inspector General $12,650,000 a/ $14,000,000 b/ $14,600,000

Relation of direct obligations to outlays

Obligations incurred $12,088,975 $14,000,000 $14,600,000

Obligated balance, start of year --- 1,934,907 1,934,907

Obligated balance, end of year (1,934,907) (1,934,907) (1,934,907)

Direct Outlays $10,154,068 $14,000,000 $14,600,000

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

b/ Represents the level of funding provided by the Consolidated Appropriations Act, 2023 (P.L. 117-328).

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 APPROPRIATION

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

2010 $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 $14,000,000 o

2024 $14,600,000

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).

o/ Consolidated Appropriations Act, 2023 (P.L. 117-328).
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 45 -2 -4.3% -54 -54.5%

2023 56 a/ 11 24.4% -43 -43.4%

2024 56 a/ 0 0.0% -43 -43.4%

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

12

EXPLANATION OF THE FISCAL YEAR 2024 BUDGET REQUEST

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

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

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. As of 

September 30, 2022, the RRB was 26th in Federal Government spending with a 

total obligated amount of $16,969,500,652. 

During fiscal year 2022, which ended September 30, 2022, the RRB paid 

approximately $13.6 billion in benefit payments, net of recoveries and offsetting 

collections. Of this amount, benefit payments for the railroad retirement and 

survivor benefits program totaled $13.5 billion (including almost $1 billion in 

disability annuities), for the railroad unemployment and sickness insurance 

benefits program totaled $90.4 million, for the Coronavirus Aid, Relief, and 

Economic Security Act (CARES Act) programs totaled $3.1 million, and for the 

vested dual benefits program totaled $9.5 million, net of recoveries and offsetting

collections. During fiscal year 2022, the RRB also paid benefits on behalf of the 

Social Security Administration (SSA) (for which the RRB is reimbursed), 

amounting to $2.2 billion for about 126,000 beneficiaries. During this period, the 

RRB paid approximately the following number of beneficiaries: 

• 506,000 for retirement and survivors,

• 6,000 for unemployment insurance,

• 17,000 sickness insurance, and

• 4,000 vested dual 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, 2022, approximately 442,615 such beneficiaries were enrolled in 

the Medicare Part B program through the RRB. During fiscal year 2022, the 

RRB’s separate Part B carrier paid approximately $923,663,912 in benefits and 

processed 7,978,574 Medicare Part B claims.
Office of Inspector General for the Railroad Retirement Board

13

The OIG conducts audits and management reviews of RRB operations and 

provides recommendations for improvement to agency management. The OIG 

also identifies and investigates waste, fraud, and abuse in RRB programs and 

makes referrals for prosecution and monetary recovery actions.

The fiscal year 2024 Performance Budget, including the President’s proposed 

administrative budget and projected performance statistics for fiscal years 2023 

through 2024, is included in this budget justification.

The OIG is requesting $14,600,000 in fiscal year 2024 to conduct its independent 

oversight of agency operations and the agency’s potential obligations of 

approximately $17 billion. The OIG will continue to perform fraud investigations, 

identify operational weaknesses, review RRB’s financials, 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 2024 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. OA provides auditing services by conducting 

audits with its own audit resources or overseeing audit work by independent 

public accounting firms. Through the Inspector General, OA keeps the Board 

Members and the Congress informed of current and potential problems and 

deficiencies in RRB operations, financial management and progress towards 

corrective action.

During fiscal year 2024, in addition to its congressionally mandated work, OA will 

focus on areas affecting program performance, financial accountability, 

mismanagement, the efficiency and effectiveness of agency operations, and 

areas of potential fraud, waste, and abuse. OA will continue its emphasis on long 
Office of Inspector General for the Railroad Retirement Board

14

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

During fiscal year 2024, 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

2023

• Semiannual reporting and audit follow-up in accordance with the Inspector

General Act of 1978, as amended

• Completion of continuing professional education hours as required by

Government Auditing Standards

• Summarization of the Office of Audit’s quality monitoring process,

including internal quality assurance reviews, as required by Government

Auditing Standards

The portion of OA resources dedicated to conducting mandated work continues 

to be significant. In fiscal year 2022, approximately 64 percent of direct auditor 
Office of Inspector General for the Railroad Retirement Board

15

time was spent completing mandated audits, overseeing mandated contracted 

audits, mandated reviews, Railroad Medicare work, and other required work. This 

percent is expected to remain consistent in fiscal year 2024. 

It is important to note that our mandated work limits the conduct of discretionary, 

RRB program-specific audits.

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

the RRB:

1. Agency Disability Program 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

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

mandates and provide additional audit oversight.

During fiscal year 2024, OA will complete the audit of the RRB’s fiscal year 2023

financial statements and begin its audit of the agency’s fiscal year 2024 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 will continue to contract the financial statement 

audit in fiscal year 2024. For the FISMA audit, OA hired a contractor for fiscal 

year 2023 and will seek a contractor for fiscal year 2024. 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 to allocate available audit resources to areas 

where they will have the greatest value. In making that determination, OA utilizes 

a strategic planning process to focus on areas affecting program performance, 
Office of Inspector General for the Railroad Retirement Board

16

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 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, 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. 

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. The OIG will continue our commitment to proactively design 

projects to promote economy, efficiency, and effectiveness in the RRB’s program 

and operations.
Office of Inspector General for the Railroad Retirement Board

17

OI Investigative Results for Fiscal Year 2022

Civil

Judgments Indictments/Informations Convictions

Financial

Accomplishments

14 8 15 $9.6 million*

During fiscal year 2022, OI opened 106 new cases and closed 78 cases. As of 

September 30, 2022, OI had 319 cases open in 48 states and the District of 

Columbia, with an estimated fraud loss totaling about $141.5 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 at least 300 investigations in both 

fiscal years 2023 and 2024.

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 29 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, more sophisticated 

investigative techniques, and numerous witness interviews. Additionally, these 

cases usually require very sophisticated financial analysis, since the schemes 

are often cloaked in what could appear to be legitimate business practices.

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

administered exclusively by the Railroad Retirement Board (RRB) and fraud amounts from other

federal programs, such as Medicare, which were included in the disposition resulting from the

investigation. Judicial sentences associated with joint casework are not necessarily delineated by

agency. If delineated, the associated RRB loss amount will be reflected in the calculation.
Office of Inspector General for the Railroad Retirement Board

18

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. In fiscal year 2022, 

Railroad Medicare fraud investigations represented approximately 15 percent of 

OI’s total caseload and about $134.1 million in potential fraud losses. OI will 

continue to work joint cases with other offices of Inspectors General and federal 

law enforcement agencies responsible for healthcare fraud matters. 

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 constituted 

about 33 percent of our fiscal year 2022 investigative caseload. This increase is 

attributed to fraud referrals involving CARES Act funds. OI will also investigate 

retirement fraud, typically involving 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. 

In fiscal year 2024, OI will continue coordinating 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 not detected through 

the agency’s program policing mechanisms. 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. 
Office of Inspector General for the Railroad Retirement Board

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Conclusion

In fiscal year 2024, the OIG will continue to focus its resources on reviewing and 

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

agency trust funds. This office will continue working with agency officials to 

ensure the agency provides quality service to railroad workers and their families.

The OIG will also aggressively pursue all individuals who engage in activities to 

receive fraudulently obtained RRB funds, including Railroad Medicare funds. 
Office of Inspector General for the Railroad Retirement Board

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FISCAL YEAR 2024 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 2024 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 and management reviews 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.
Office of Inspector General for the Railroad Retirement Board

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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. We aim to 

reduce the potential for waste, fraud, and abuse in the RRB’s programs and 

operations and to deter 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 RRB, the Congress, and other interested parties use the OIG's products and 

services 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 OIG’s vision statement's third element: 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 referred to our Office 

through various 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 competently and efficiently, the OIG must have a skilled 

and motivated workforce. 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 recruiting and retaining a highly skilled and appropriately

developed professional staff.

• 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 2024 provides performance 

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

the following exhibit for fiscal years 2019 through 2022. Performance for fiscal 

year 2023 reflects the appropriated level of resources provided by the 

Consolidated Appropriations Act, 2023 (P.L. 117-328). Fiscal year 2024

performance reflects the President’s proposed budget level of $14,600,000. 
Office of Inspector General for the Railroad Retirement Board

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Railroad Retirement Board

Office of Inspector General

FY 2024 Performance Budget

FY 2019

Actual

($11.00M)

FY 2020

Actual

($11.00M) 

FY 2021

Actual

($11.50M) 

FY 2022

Actual

($12.65M) 

FY 2023

Estimate

($14.00M) 

FY 2024

Request

($14.60M) 

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%

For discretionary audits, seventy-five percent of 

draft reports will be issued to agency 

management within 240 days of entrance. 

N/A N/A N/A N/A 75% 75%

For all mandated work products, ninety percent 

will be issued by the reporting deadline. N/A N/A N/A 100% 90% 90%

For audit follow-up, eighty percent of requests 

to close an audit recommendation will be 

evaluated and responses sent within thirty 

business days of receipt.

N/A N/A N/A 71% 80% 80%

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
Office of Inspector General for the Railroad Retirement Board

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Railroad Retirement Board

Office of Inspector General

FY 2024 Performance Budget

FY 2019

Actual

($11.00M)

FY 2020

Actual

($11.00M)

FY 2021

Actual

($11.50M)

FY 2022

Actual

($12.65M)

FY 2023

Estimate

($14.00M)

FY 2024

Request

($14.60M)

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

Percentage of allegations evaluated and reviewed for 

investigative action within 30 days of receipt. 94% 90% 90% 95% 96% 96% 

Percentage of investigative cases closed during fiscal 

year to total cases open during the fiscal year. 32% 38% 21% 20% 17% 17% 

The OIG will complete four projects to identify fraud 

cases that are not detected through agency policing 

procedures.

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

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Railroad Retirement Board

Office of Inspector General

FY 2024 Performance Budget

FY 2019

Actual

($11.00M)

FY 2020

Actual

($11.00M)

FY 2021

Actual

($11.50M)

FY 2022

Actual

($12.65M)

FY 2023

Estimate

($14.00M)

FY 2024

Request

($14.60M)

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 are subject to an internal 

quality assurance review. 66.7% 100% 100% 100% 80% 80% 
____________________________________________________________________________________________________________ ____________________________________________________________ ________________________________________________