FY 2022 BUDGET SUBMISSION

Office of Inspector General

Railroad Retirement Board
UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

September 14, 2020

The Honorable Russell T. Vought 

Director

Office of Management and Budget

Eisenhower Executive Office Building

1650 Pennsylvania Avenue, NW

Washington, DC 20503

Dear Director Vought: 

We are respectfully submitting the fiscal year 2022 budget request for the Office 

of Inspector General (OIG) of the Railroad Retirement Board (RRB). This request 

was prepared in compliance with Office of Management and Budget (OMB) 

Circular No. A-11. In accordance with Section 7(f) of the Railroad Retirement Act, 

our request is being submitted concurrently to OMB and the Congress. 

The 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 and is the exclusive provider of financial and internal audit 

services to the agency. The OIG also operates a nationwide investigative 

program to address allegations of fraud and employee misconduct.

We are requesting $11,728,000 in fiscal year 2022 to continue our oversight of 

agency programs. This represents the amount needed to fund our requested 

staff level of 54 FTEs; to adequately fund required contracts, indirect costs, and 

other miscellaneous expenses; and to provide the necessary resources for the 

OIG to continue its efforts to perform fraud investigations, detect operational 

weaknesses, and identify internal control deficiencies in RRB benefit programs. 

In compliance with OMB guidance provided in June, 2020, our budget 

submission also includes a fiscal year 2022 budget level of $10,924,000 (equal to 

a five percent reduction below the $11,499,000 provided the RRB OIG in the 

President’s fiscal year 2021 budget). 
Our current fiscal year 2020 appropriation of $11,000,000 has made it possible 

for the RRB OIG to evaluate and upgrade its information technology (IT) 

environment and obtain assistance in improving its information technology 

infrastructure. Continuing funding at a level of $11,000,000, or higher, will make it 

possible for us to advance our primary goal, which is to replace staff lost through 

attrition.

We have begun to hire additional auditors and investigators, and we hope to be 

able to continue with our hiring plans. If we were to receive our requested level of 

$11,728,000 in fiscal year 2022, we would be able to fund a staffing level of 54 

FTEs, which would optimally fulfill our audit and investigative responsibilities. 

We anticipate that providing funding for the RRB OIG at the OMB guidance level 

of $10,924,000 in fiscal year 2022 would stall growth in acquiring new staff, 

meeting statutory obligations and preparing for new IT challenges. 

With less funding, our ability to perform in all areas of the Inspector General’s 

statutory mission and to provide independent oversight of agency operations 

would be affected. That is, if we are unable to maintain or increase our funding, 

mandated annual audit requirements would dominate our efforts, and our ability 

to perform additional audits and investigate allegations of fraud, waste, and 

abuse would be hampered. 

Adequate resources are vital to maintain our ability to pursue investigations

effectively. Fewer resources would impact our ability to pursue investigations of 

fraud schemes targeting RRB programs or beneficiaries, thereby creating a

potential incentive for those who would otherwise be deterred by more effective 

investigative and prosecutorial actions. 

This budget submission includes the OIG’s Performance Budget for fiscal year 

2022, which provides actual performance data for fiscal years 2017 through 2019 

and projected performance for fiscal years 2020 through 2022. 

We are also requesting the following change to our oversight and enforcement 

authority:

• The RRB OIG requests the authority to utilize an independent accounting

(IPA) firm or the Government Accountability Office (GAO) to conduct its

financial statement audit. There are currently 20 OIG Offices of Audit with

between 10 and 100 auditors (including the RRB OIG Office of Audit).

The RRB OIG is the only office of this size to conduct the financial audit

with its own audit staff.
Permitting the RRB OIG to contract with an IPA or the GAO to conduct the 

financial statement audit would allow the RRB OIG to pursue additional 

audit priorities such as RRB benefit program operations, RRB contracting 

activity, improper payments, and security, privacy, and information 

management. With additional staff availability, the RRB OIG will complete 

more audits and provide better oversight of RRB operations. 

This office will continue to use efficiently 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. 

Sincerely,

Martin J. Dickman

Inspector General

Enclosure

Original Signed
UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

September 14, 2020

The Honorable Michael R. Pence

President of the Senate

S-212 Capitol Building

Washington, DC 20510

Dear Mr. President: 

We are respectfully submitting the fiscal year 2022 budget request for the Office 

of Inspector General (OIG) of the Railroad Retirement Board (RRB). This request 

was prepared in compliance with Office of Management and Budget (OMB) 

Circular No. A-11. In accordance with Section 7(f) of the Railroad Retirement Act, 

our request is being submitted concurrently to OMB and the Congress. 

The 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 and is the exclusive provider of financial and internal audit 

services to the agency. The OIG also operates a nationwide investigative 

program to address allegations of fraud and employee misconduct.

We are requesting $11,728,000 in fiscal year 2022 to continue our oversight of 

agency programs. This represents the amount needed to fund our requested 

staff level of 54 FTEs; to adequately fund required contracts, indirect costs, and 

other miscellaneous expenses; and to provide the necessary resources for the 

OIG to continue its efforts to perform fraud investigations, detect operational 

weaknesses, and identify internal control deficiencies in RRB benefit programs. 

In compliance with OMB guidance provided in June, 2020, our budget 

submission also includes a fiscal year 2022 budget level of $10,924,000 (equal to 

a five percent reduction below the $11,499,000 provided the RRB OIG in the 

President’s fiscal year 2021 budget). 

Our current fiscal year 2020 appropriation of $11,000,000 has made it possible 

for the RRB OIG to evaluate and upgrade its information technology (IT) 

environment and obtain assistance in improving its information technology 

infrastructure. Continuing funding at a level of $11,000,000, or higher, will make it 

possible for us to advance our primary goal, which is to replace staff lost through 

attrition. 
We have begun to hire additional auditors and investigators, and we hope to be 

able to continue with our hiring plans. If we were to receive our requested level of 

$11,728,000 in fiscal year 2022, we would be able to fund a staffing level of 54 

FTEs, which would optimally fulfill our audit and investigative responsibilities. 

We anticipate that providing funding for the RRB OIG at the OMB guidance level 

of $10,924,000 in fiscal year 2022 would stall growth in acquiring new staff, 

meeting statutory obligations and preparing for new IT challenges. 

With less funding, our ability to perform in all areas of the Inspector General’s 

statutory mission and to provide independent oversight of agency operations 

would be affected. That is, if we are unable to maintain or increase our funding, 

mandated annual audit requirements would dominate our efforts, and our ability 

to perform additional audits and investigate allegations of fraud, waste, and 

abuse would be hampered. 

Adequate resources are vital to maintain our ability to pursue investigations

effectively. Fewer resources would impact our ability to pursue investigations of 

fraud schemes targeting RRB programs or beneficiaries, thereby creating a

potential incentive for those who would otherwise be deterred by more effective 

investigative and prosecutorial actions. 

This budget submission includes the OIG’s Performance Budget for fiscal year 

2022, which provides actual performance data for fiscal years 2017 through 2019 

and projected performance for fiscal years 2020 through 2022. 

We are also requesting the following change to our oversight and enforcement 

authority:

• The RRB OIG requests the authority to utilize an independent accounting

(IPA) firm or the Government Accountability Office (GAO) to conduct its

financial statement audit. There are currently 20 OIG Offices of Audit with

between 10 and 100 auditors (including the RRB OIG Office of Audit).

The RRB OIG is the only office of this size to conduct the financial audit

with its own audit staff.

Permitting the RRB OIG to contract with an IPA or the GAO to conduct the

financial statement audit would allow the RRB OIG to pursue additional

audit priorities such as RRB benefit program operations, RRB contracting

activity, improper payments, and security, privacy, and information

management. With additional staff availability, the RRB OIG will complete

more audits and provide better oversight of RRB operations.
This office will continue to use efficiently 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. 

Sincerely,

Martin J. Dickman

Inspector General

Enclosure

cc: Honorable Richard Shelby

Chairman, Senate Committee on Appropriations

Honorable Patrick J. Leahy

Vice Chairman, Senate Committee on Appropriations

Honorable Roy Blunt

Chairman, Senate Appropriations Subcommittee on Labor, Health

 and Human Services, Education, and Related Agencies

Honorable Patty Murray

Ranking Member, Senate Appropriations Subcommittee on Labor, Health

 and Human Services, Education, and Related Agencies

Original Signed
UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

September 14, 2020

The Honorable Nancy Pelosi

Speaker of the House of Representatives

H-232 Capitol Building

Washington, DC 20515

Dear Madam Speaker: 

We are respectfully submitting the fiscal year 2022 budget request for the Office 

of Inspector General (OIG) of the Railroad Retirement Board (RRB). This request 

was prepared in compliance with Office of Management and Budget (OMB) 

Circular No. A-11. In accordance with Section 7(f) of the Railroad Retirement Act, 

our request is being submitted concurrently to OMB and the Congress. 

The 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 and is the exclusive provider of financial and internal audit 

services to the agency. The OIG also operates a nationwide investigative 

program to address allegations of fraud and employee misconduct.

We are requesting $11,728,000 in fiscal year 2022 to continue our oversight of 

agency programs. This represents the amount needed to fund our requested 

staff level of 54 FTEs; to adequately fund required contracts, indirect costs, and 

other miscellaneous expenses; and to provide the necessary resources for the 

OIG to continue its efforts to perform fraud investigations, detect operational 

weaknesses, and identify internal control deficiencies in RRB benefit programs. 

In compliance with OMB guidance provided in June, 2020, our budget 

submission also includes a fiscal year 2022 budget level of $10,924,000 (equal to 

a five percent reduction below the $11,499,000 provided the RRB OIG in the 

President’s fiscal year 2021 budget). 

Our current fiscal year 2020 appropriation of $11,000,000 has made it possible 

for the RRB OIG to evaluate and upgrade its information technology (IT) 

environment and obtain assistance in improving its information technology 

infrastructure. Continuing funding at a level of $11,000,000, or higher, will make it 

possible for us to advance our primary goal, which is to replace staff lost through 

attrition.
We have begun to hire additional auditors and investigators, and we hope to be 

able to continue with our hiring plans. If we were to receive our requested level of 

$11,728,000 in fiscal year 2022, we would be able to fund a staffing level of 54 

FTEs, which would optimally fulfill our audit and investigative responsibilities. 

We anticipate that providing funding for the RRB OIG at the OMB guidance level 

of $10,924,000 in fiscal year 2022 would stall growth in acquiring new staff, 

meeting statutory obligations and preparing for new IT challenges. 

With less funding, our ability to perform in all areas of the Inspector General’s 

statutory mission and to provide independent oversight of agency operations 

would be affected. That is, if we are unable to maintain or increase our funding, 

mandated annual audit requirements would dominate our efforts, and our ability 

to perform additional audits and investigate allegations of fraud, waste, and 

abuse would be hampered. 

Adequate resources are vital to maintain our ability to pursue investigations

effectively. Fewer resources would impact our ability to pursue investigations of 

fraud schemes targeting RRB programs or beneficiaries, thereby creating a

potential incentive for those who would otherwise be deterred by more effective 

investigative and prosecutorial actions. 

This budget submission includes the OIG’s Performance Budget for fiscal year 

2022, which provides actual performance data for fiscal years 2017 through 2019 

and projected performance for fiscal years 2020 through 2022. 

We are also requesting the following change to our oversight and enforcement 

authority:

• The RRB OIG requests the authority to utilize an independent accounting

(IPA) firm or the Government Accountability Office (GAO) to conduct its

financial statement audit. There are currently 20 OIG Offices of Audit with

between 10 and 100 auditors (including the RRB OIG Office of Audit).

The RRB OIG is the only office of this size to conduct the financial audit

with its own audit staff.

Permitting the RRB OIG to contract with an IPA or the GAO to conduct the

financial statement audit would allow the RRB OIG to pursue additional

audit priorities such as RRB benefit program operations, RRB contracting

activity, improper payments, and security, privacy, and information

management. With additional staff availability, the RRB OIG will complete

more audits and provide better oversight of RRB operations.
This office will continue to use efficiently 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. 

Sincerely,

Martin J. Dickman

Inspector General

Enclosure

cc: Honorable Nita Lowey

Chairwoman, House Committee on Appropriations

Honorable Kay Granger

Ranking Member, House Committee on Appropriations

Honorable Rosa DeLauro

Chairwoman, House Appropriations Subcommittee on Labor, Health

 and Human Services, Education, and Related Agencies

Honorable Tom Cole

Ranking Member, House Appropriations Subcommittee on Labor, Health

 and Human Services, Education, and Related Agencies

Original Signed
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

Fiscal Year 2022 Budget Submission

Table of Contents

Limitation on the Office of Inspector General Fiscal Year 2022 Budget..................... 1

Administrative Appropriation Request for Fiscal Year 2022........................................ 2

Budget by Appropriation and Object Class..................................................................... 3

Analysis of Resources......................................................................................................... 4

Full Time Equivalent Staff by Grade................................................................................. 5

Office of Audit..................................................................................................................... 6

Office of Investigations...................................................................................................... 9

Requested Change in Operational Authority.................................................................. 12

Fiscal Year 2022 Performance Budget............................................................................. 13

Performance Budget.......................................................................................................... 16

Agency Workforce Plan...................................................................................................... 22
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

1 

Limitation on the Office of Inspector General

Fiscal Year 2022 Budget

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. In fiscal year 

2019, the agency paid approximately $13.1 billion in retirement and survivor benefits to about 

540,000 beneficiaries. The RRB also paid $100.2 million in net unemployment and sickness 

insurance benefits. Approximately 9,000 railroad workers received unemployment benefits and 

15,900 received sickness insurance 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, 2019, there were 

fewer than 446,300 railroad retirement beneficiaries enrolled in the Medicare Part B 

program. During fiscal year 2019, the RRB’s separate Part B carrier paid nearly $832.4 million in 

claims. 

The OIG conducts audits and management reviews 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 OIG is requesting $11,728,000 in fiscal year 2022 to conduct its independent oversight of 

agency operations. At this level of funding, the OIG will have the resources needed to support a 

requested staff level of 54 full-time equivalents (FTEs) and to continue its efforts to conduct 

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 fiscal year 2022 budget submission also includes a budget level of $10,924,000 (equal to a 

five percent reduction below the net Non-Defense Discretionary total of $11,499,000 provided 

the OIG in the Appendix, Budget of the United States Government, Fiscal Year 2021), in 

compliance with the Office of Management and Budget (OMB) guidance. 
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

2 

The fiscal year 2022 Performance Budget is included in this budget document and projects 

performance statistics for fiscal years 2020 – 2022 and provides actual results for fiscal years 

2017 – 2019. 

Budget Account - Limitation on the Office of Inspector General

(60-8018-0-7-601)

Administrative Appropriation Request for Fiscal Year 2022

(in thousands of dollars)

Fiscal Year 2022

Fiscal Year 

2021 RRB

Administration

OMB 

Level*

OIG

Proposed 

Level

Request 

Level

Limitation on the Office of Inspector General 11,499 10,924 11,728

Full-time equivalent (FTE) staff-years 52 50 54

*OMB level includes the 5% reduction pursuant to OMB’s June, 2020 guidance; at that level

FTEs are an estimate based on average 2020 salaries and benefits.
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

3 

Limitation on Administration

Budget by Appropriation and Object Class

(in thousands of dollars)

Fiscal Year 2022

Fiscal Year 2020 Fiscal Year 2021 RRB OIG

Current President’s OMB Request

Appropriation Budget Level Change Level

OMB Object Class

Personnel Compensation:

11.1 Full-Time Permanent 5,100 5,336 5,070 374 5,444

11.3 Other Than Full-Time 

Permanent

11.5 Other Personnel 

Compensation 136 137 130 10 140

11.9 Total Personnel 

Compensation 5,236 5,473 5,200 384 5,584

12.0 Personnel Benefits: 

Civilian 2,147 2,244 2,132 157 2,289

13.0 Benefits for Former 

Personnel 0 0 0 0 0

21.0 Travel and 

Transportation 180 188 179 12 191

23.0 Communications, 

Utilities, and Rent 350 366 348 26 373

25.0 Other Services 2,706 2,829 2,687 198 2,885

26.0 Supplies and Materials 46 48 46 3 49

31.0 Equipment 335 350 333 24 357

Total OIG Direct Obligations 11,000 11,499 10,924 804 11,728 a/

Reimbursable Obligations 1,500 1,500 1,500 0 1,500

Total OIG Obligations 12,500 12,999 12,424 804 13,228

OIG Funded FTE Allocation 45 52 50 4 54

a/ The RRB OIG request level of $11,728,000 for fiscal year 2022 would allow the RRB OIG to fund a staff level of 54

FTEs and provide additional funding for miscellaneous expenses.
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

4 

Budget Account - Limitation on the Office of Inspector General

(60-8018-0-7-601)

Analysis of Resources

(in thousands of dollars)

FY 2022

FY 2020 FY 2021 RRB OIG

Request

Level

Current 

Appropriation

President’s 

Budget

OMB

Level**

Budget Authority........................ 11,000 11,499 10,924 11,728

Outlays....................................... 11,000 11,499 10,924 11,728

Full-time Equivalent Employment

(Work Years):

 Total Funded.......................... 45 52 50 54

FY 2023 FY 2024 FY 2025 FY 2026 FY 2027

Budget Authority:

 OMB Level..................................... 12,000 12,000 12,000 12,000 12,000

 RRB OIG Request Level............... * * * * *

Outlays:

 OMB level.......................................... 12,000 12,000 12,000 12,000 12,000

 RRB OIG Request Level.................. * * * * *

*Amounts for these years to be determined.

** OMB level includes the 5% reduction pursuant to

OMB’s June, 2020 guidance; at that level, FTEs are an 

estimate based on average 2020 salaries and benefits.
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

5 

Budget Account - Limitation on the Office of Inspector General

(60-8018-0-7-601)

Full Time Equivalent Staff by Grade

FY 2022

FY 2020 FY 2021 RRB OIG

Grade Current Administration OMB Request

Personnel Series Level Appropriation * Proposed Level Level** Level

Executive IG 1 1 1 1

Senior Executive 

Service

SES 2 3 3 3

General Schedule GS-15 1 1 1

GS-14 9 9 9 9

GS-13 16 17 16 16

GS-12 11 12 19 19

GS-11 1 8 1 2

GS-10 0 0 0 0

GS-09 8 1 1 3

GS-08 0 0 0 0

GS-07 0 0 0 0

GS-06 0 0 0 0

GS-05 0 0 0 0

GS-04 0 0 0 0

________ ________ _______ ________

Total FTEs Funded 49 52 50 54

* The FTE total for fiscal year 2020 reflects projected FTE usage.

** OMB level includes the 5% reduction pursuant to OMB’s June 21, 2019

memorandum and guidance; at that level, FTEs are an estimate based on 

average 2020 salaries/benefits and the chart presents one possible scenario 

to achieve a reduction.
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

6 

The OIG conducts its operations through two major components: the Office of Audit and the 

Office of Investigations. A discussion of the priority areas in fiscal year 2022 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 2022, OA will focus on meeting its mandated audit requirements; areas 

affecting program performance; the efficiency and effectiveness of agency operations; and 

areas of potential fraud, waste, and abuse. In fiscal year 2022, 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 (RRA) and Railroad Unemployment Insurance Act (RUIA)

benefit program operations;

• RRB contracts and contracting activities;

• Railroad Medicare program operations;

• security, privacy, and information management;

• improper payments; and

• effectiveness and efficiency of agency operations.

During fiscal year 2022, OA must accomplish the following mandated activities in addition to 

other program audits:

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

Accountability of Tax Dollars Act of 2002;

• audit 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;
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

7 

• review of Inspector General requirements for the Government Charge Card Abuse and

Prevention Act of 2012;

• identification of performance and management challenges; and

• semiannual reporting in accordance with the Inspector General’s Act of 1978, as

amended.

During fiscal year 2022, unless budget authority and funding is provided for a contract to 

perform the financial audit (see page 12), OA will complete the audit of the RRB’s fiscal 

year 2021 financial statements and begin its audit of the agency’s fiscal year 2022 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. In addition to the mandated annual evaluation of information security, OA also 

conducts audits of individual computer application systems that are required to support the 

annual FISMA evaluation. OA’s work in this area is targeted toward the identification and 

elimination of security deficiencies and system vulnerabilities, including controls over sensitive 

personally identifiable information. 

In fiscal year 2020, OA expects to complete 8 reports, 5 of which address mandated 

requirements and most of which are completed under Generally Accepted Government 

Auditing Standards. To date in fiscal year 2020, OA has issued 55 recommendations for 

improvement to the agency and reviewed and accepted agency requests to close 75 prior audit 

recommendations. In addition, in fiscal year 2020, OA reported that the RRB is noncompliant

with the Improper Payments Elimination and Recovery Act for the Railroad Medicare program 

and that its payment integrity reporting was incomplete and inaccurate. OA also reported that 

the RRB needs to improve its performance in reducing Railroad Medicare improper payments. 

Improvements are also needed in RRB internal controls for Digital Accountability and 

Transparency Act of 2014. OA also reported on continuing, systemic weaknesses in RRB’s 

information technology security program. 

OA undertakes additional projects to address our oversight responsibilities for newly enacted 

legislation as needed. OA recently began a review of the Coronavirus Aid, Relief, and Economic 

Security Act (CARES Act) signed into law by President Trump on March 27, 2020, which contains

a number of provisions that affect railroad workers. The RRB received an appropriation of

$425 million to pay for increased unemployment benefits for qualified railroad workers. In 

addition, unemployment benefits were extended for railroad workers who received 

unemployment benefits from July 1, 2019, to June 30, 2020. The RRB also received an 

additional $50 million to cover the cost of temporarily waiving the one-week waiting period 

before railroad workers may receive unemployment or sickness benefits. The RRB was also 
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

8 

granted authority to utilize approximately $143 million which remained available from prior 

legislation that provided extended unemployment benefits.

OA issued an Oversight Plan on May 15, 2020 that detailed our plans for the CARES Act review. 

Regularly, the RRB-OIG monitors agency compliance with the various requirements of the law 

and implementing guidance. OA anticipates that our efforts during the RRB’s implementation of 

the CARES Act provisions may identify matters that can best be developed and presented by a 

formal audit process. In addition, increased benefit payments under the CARES Act creates an 

increased potential for fraud. 

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 fiscal 

year activities. 
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

9 

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 may result in criminal convictions, civil penalties, administrative sanctions, and the 

recovery of RRB program benefit funds. 

OI initiates cases based on information from a variety of sources. For instance, 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 OIG audits. 

To date, OI has opened 144 new cases and closed 165 cases. Preliminary OI investigative results 

for FY 2020 are summarized in the table below: 

FY 2020 Year-To-Date Ol Investigative Results 

Civil Judgments Indictments/Informations Convictions Financial Accomplishments

 14 15 22 $298,938,958.76a

In fiscal year 2022, OI anticipates an ongoing caseload of approximately 275 investigations. 

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 41 percent of Ol's total caseload. These cases involve 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 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. These cases also require very 

a 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.
OFFICE OF INSPECTOR GENERAL - RAILROAD RETIREMENT BOARD

10

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 21 percent of OI’s total caseload. OI’s 

collaborative joint investigative efforts ensure that RRB beneficiaries are protected from sham 

medical practitioners, and that the Railroad Medicare program’s interests are safeguarded from 

fraudulent schemes.

OI will continue to investigate fraud violations of railroad employees collecting unemployment 

or sickness insurance benefits while working and receiving wages from an employer. 

Unemployment fraud cases currently constitute approximately 15 percent of OI’s total 

caseload.

OI will also investigate retirement fraud which typically involves the theft and fraudulent 

cashing of U.S. Treasury checks or the withdrawal of electronically deposited RRB benefits. 

OI will continue to utilize the Department of Justice's Affirmative Civil Enforcement Program to 

recover trust fund monies from cases that do not meet U.S. Attorneys’ guidelines for criminal 

prosecution. 

In fiscal year 2022, OI will continue to coordinate its efforts with agency program managers to 

address vulnerabilities in benefit programs 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 to promote economy, efficiency, and 

effectiveness in the RRB’s program and operations. 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. 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.
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Conclusion

In fiscal year 2022, 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. 
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Requested Change in Operational Authority

Outsourcing the Financial Statement Audit of the Railroad Retirement Board

In accordance with the Accountability of Tax Dollars Act of 2002, the RRB is required to produce 

audited financial statements. Prior requirements of the Chief Financial Officers Act of 1990 

required the preparation and audit of RRB trust funds. The RRB OIG has conducted audits of the 

RRB’s financial statements using OIG staff since fiscal year 1997. The OIG was directed to do so 

by Congress, as noted in both Senate and House Reports related to the fiscal year 1994 

appropriation. In accordance with the legislative intent communicated by Congress, the OIG 

financial statement audit opines on the Consolidated Balance Sheet, Consolidated Statement of 

Net Cost, Consolidated Statement of Changes in Net Position, Combined Statement of 

Budgetary Resources, Statement of Social Insurance, and the Statement of Changes in Social 

Insurance Amounts.

There are currently 20 OIG Offices of Audit with between 10 and 100 auditors (including the 

RRB OIG Office of Audit). Of these, all but the RRB OIG utilized an independent public 

accounting (IPA) firm or the Government Accountability Office to conduct its financial 

statement audit. Of the agencies defined in the Chief Financial Officers Act, in recent years, all 

but five issue a financial statement audit opinion issued by an IPA, while many of the remaining 

rely on IPAs to conduct much of the audit work. 

The RRB OIG requests the authority to utilize an IPA to conduct the financial statement audit 

and the budgetary resources to do so. The most significant advantage of utilizing an IPA is that 

OIG staff could be utilized on other audit activities. During the peak of financial statement audit 

work, up to 8 of 18 OIG auditors are working on the financial statement audit. Work on the 

financial statement audit, including additional audits supporting the financial statement audit, 

is equivalent to four to five FTEs each year—nearly a third of the current RRB OIG audit staff. 

We estimate that the cost of utilizing an IPA for the financial statement audit will be between 

$700,000 and $850,000. A formal procurement process would be undertaken to ensure the IPA 

is selected in the most cost effective manner and to ensure continued OIG independence in 

conducting the financial statement audit. 

Permitting the RRB OIG to contract with an IPA for the financial statement audit will allow the 

RRB OIG to pursue additional audit priorities, such as RRB benefit program operations, RRB 

contracting activity, improper payments, and security, privacy, and information management. 

The OA maintains an audit universe of over 100 audit ideas and determines which audits to 

conduct after considering various risk analyses such as program size, potential for fraud and 

abuse, improving efficiency at the RRB, as well as Congressional interest. With additional staff 

availability, we will be able to complete more of these audits and further develop expertise 
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across the RRB’s varied and complex program areas in order to provide better oversight of the 

RRB. 

Fiscal Year 2022 Performance Budget

The audit and investigative programs of the OIG are dedicated to protecting the integrity of the 

RRB’s trust funds and improving the delivery of benefits to the railroad community. The OIG has 

developed the fiscal year 2022 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 will promote 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 will: 

• conduct audits, reviews, and evaluations of the RRB’s programs and operations;

• provide recommendations for improvement to RRB management;

• prevent and detect fraud, waste, and abuse in the RRB’s programs and operations;

• review and make recommendations regarding existing and proposed legislation and

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

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

operations.
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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. 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.
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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 review and investigate 

allegations of fraud that are referred to our office through a variety of internal and external 

sources. We 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 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; the Council of the Inspectors General on Integrity and

Efficiency quality standards for federal Offices of Inspector General; and other

requirements.

Performance Budget 

The Performance Budget for fiscal year 2022 provides performance indicators consistent with 

our strategic goals. Actual performance is provided in the following exhibit for fiscal years 2017 

through 2019. Performance for fiscal year 2020 reflects the level of resources provided by the 

Further Consolidated Appropriations Act, 2020, and fiscal year 2021 performance reflects the 

President’s proposed budget level of $11,499,000. 

Performance data for fiscal year 2022 reflects funding at the fiscal year 2022 OMB guidance 

level of $10,924,000 (reflecting the reduction in OMB’s June, 2020 guidance) and at the RRB 

OIG budget request level of $11,728,000. 
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Railroad Retirement Board

Office of Inspector General

FY 2022 Performance Budget

FY 2017 

Actual

$10.000M

FY 2018 

Actual

$11.000M

FY 2019 

Actual

$11.000M

FY 2020 

Actual

$11.000M

FY 2021 

President’s 

Budget

$11.499M

FY 2022

OMB 

Level 

$10.924M

FY 2022

RRB OIG 

Request

Level 

$11.728M

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 

percent of the agency’s 

organizational components.

100% 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.

75% 100% 79% 78% 80% 80% 80% 

Agency management agrees with 

80 percent of recommendations 

made in audit, evaluation, and 

inspection reports.

76% 92% 42% 80% 80% 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 35 days

The OIG will file 100 percent of 

reports on time, and 

acknowledge 100 percent of 

requests for information within 

three working days.

100% 100% 100% 100% 100% 100% 100%
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Railroad Retirement Board

Office of Inspector General

FY 2022 Performance Budget

FY 2017 

Actual

$10.000M

FY 2018 

Actual

$11.000M

FY 2019 

Actual

$11.000M

FY 2020

Actual

$11.000M

FY 2021 

President’s 

Budget 

$11.499M

FY 2022

OMB 

Level 

$10.924M

FY 2022

RRB OIG 

Request 

Level 

$11.728M

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.

99% 98% 93% 96% 95% 95% 95%

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.

27% 26% n/a n/a n/a n/a n/a

Percentage of investigative cases 

closed during the fiscal year to 

total cases open during the fiscal 

year.

n/a n/a 32% 20% 20% 20% 20%

The OIG will complete four 

projects to identify fraud cases 

that are not detected through 

agency policing procedures.

8 7 8 7 7 7 7 
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Railroad Retirement Board

Office of Inspector General

FY 2022 Performance Budget

FY 2017 

Actual

$10.000M

FY 2018 

Actual

$11.000M

FY 2019 

Actual

$11.000M

FY 2020 

Actual

$11.000M

FY 2021

President’s 

Budget 

$11.499M

FY 2022

OMB 

Level 

$10.924M

FY 2022

RRB OIG 

Request 

Level 

$11.728M

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% 100%

All auditors hold the appropriate 

credentials to satisfy 

government, CIGIE, and 

applicable standards.

100% 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% 100%

Eighty percent of audits, 

evaluations, and inspections are 

subjected to an internal quality 

assurance review.

100% 66.7% 100% 100% 90% 90% 90%
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RRB OIG is responsible for promoting economy, efficiency, and effectiveness; and for identifying 

and preventing fraud, waste, and abuse in agency programs. As part of strategic planning, we 

have often focused audit work on assessments in these priority areas and would continue to 

conduct audits and evaluations in these areas in support of the President’s Management 

Agenda (PMA). 

Several OIG-identified major management challenges facing RRB are related to PMA priority 

areas as shown in the table below.

OIG-Identified Major 

Management Challenge 

Facing RRB

Associated PMA 

Priority Areas RRB OIG Planned Projects/Audits

IT Security and System 

Modernization

IT Modernization FISMA Audit 

Compliance Data, 

Accountability, and 

Transparency 

Purchase Card Audit

FISMA Audit 

Audit of RRB Compliance with Improper Payment 

Legislation

Financial Management 

and Reporting

Data, 

Accountability, and 

Transparency

Audit of Designated Change Receipts

Financial Statement Audit

Audit of RRB Compliance with Improper Payment 

Legislation

Audit of the Effectiveness and Efficiency of the 

RRB’s Treasury, Debt Recovery, and Financial 

Systems Sections within the Bureau of Fiscal 

Operations

Disability Program 

Integrity

Data, 

Accountability, and 

Transparency

Audit of the Disability Briefing Process

In addition, several other management challenges relate to payment accuracy weaknesses such 

as challenges in program integrity related to the RRB disability program, management of the 

Railroad Medicare program, and RRB’s noncompliance with improper payment reporting. 
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Given the significant parallels between the PMA and RRB OIG’s strategic planning related to 

RRB major management challenges, we dedicate significant OIG resources to review and 

provide recommendations for improvement to RRB management to make its activities more 

efficient and cost effective, in support of the PMA. 
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Agency Workforce Plan

The Office of Inspector General (OIG) is committed to fostering a culture that motivates and 

rewards employees not only for their performance but also for their longevity of service, 

innovative ideas, and their contributions to the office. 

The OIG strives to ensure that all personnel are committed to achieving results aligned with 

our office’s strategic goals. One of our major human capital goals is to develop a 

performance management system that distinguishes between high and low performers, links 

individual/team/unit performance to organization goals, and motivates and rewards staff for 

high performance. The agency has a robust Incentive Awards Program that allows for the 

ongoing use of awards and recognition throughout the year to reward high performing 

employees.

In fiscal year 2022, the OIG projects awards spending of approximately $150,000, which 

neither includes QualityStep Increases (QSI) nor Time-Off Awards. Awards spending decisions 

will be decided by the Inspector General. All spending decisions will adhere to the OIG’s 

Incentive Awards Program. 

Awards and Recognition

The OIG recognizes employees for their accomplishments and contributions to the OIG and 

service to the railroad public. The office’s Incentive Awards Program improves office 

operations by encouraging employees to submit constructive suggestions, to perform the 

duties of their position in a superior manner, to make significant accomplishments in the 

area of public service, and to help promote equal employment opportunities in the federal 

service. Following are the various ways in which an individual can be rewarded and 

recognized:

• Performance Awards are recommended annually based on an employee’srating of

record. The rating of record must show that an employee’s performance substantially

exceeds an acceptable level of competence. The amount of the performance award is

calculated in accordance with the performance awards scale, with higher ratings

receiving higher award amounts. This category of awards also includes QSIs. It should

be noted that only employees with an outstanding rating of record can be considered

for a QSI.
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• Superior Accomplishment Awards are used to motivate employees to increase

productivity and creativity by rewarding their contributions resulting in tangible

benefits or savings and/or intangible benefits to the office. A contribution means an

accomplishment achieved through an individual or group effort in the form of a

suggestion or a special act or service in the public interest connected with or related

to their official employment.

• Time-off Incentive Awards recognize a superior accomplishment or an exceptional

personal effort that contributes to the quality, efficiency, or economy of agency

operations. Individual employees or entire teams can be grantedtime off in one

hour increments with a maximum of eight hours per nomination. An employee may

only receive a maximum of 16 hours in a calendar year.

• The RRB Award for Excellence Program is designed to recognize outstanding

employees for their accomplishments and contributions to the office and service to

the railroad public. All OIG employees, supervisors, and work teams have the

opportunity to berecognized for their contributions to the office and agency. The

nominees, finalists, and winners are all honored at an annual ceremony where they

receive an award for their achievements.

Office employees are also recognized for their career longevity. Employees with 15+ years of 

service are eligible to receive a Career Service Recognition Award. The awards are 

commensurate with the number of years that the employee has served in federal service.