Treasury OIG: Semiannual Report to Congress, April 1, 2022 – September 30, 2022 (OIG-CA-23-004)
Summary
The Department of the Treasury Office of Inspector General's Semiannual Report to Congress OIG-CA-23-004 covers April 1, 2022 through September 30, 2022. It states that the Office of Audit issued 22 products and identified about $1.1 million in questioned costs, and that work by the Office of Investigations resulted in 5 indictments and 12 convictions. The highlights report that Saggar & Rosenberg, P.C. found questioned costs of $767,452 at Pegasus Elite Aviation Inc., $172,218 at XOJET Aviation, LLC and $165,586 at Alpine Aviation, Inc. in their Air Carrier Payroll Support Program applications. They also describe subjects sentenced to a total of 60 months of probation and $298,000 in restitution for fraudulent Emergency Rental Assistance applications.
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Semiannual Report to Congress
April 1, 2022 – September 30, 2022
OIG-CA-23-004
Office of Inspector General
Department of the Treasury
Highlights
During this semiannual reporting period, the Office of Audit issued 22 products. The office
also identified about $1.1 million in questioned costs. Work by the Office of Investigations
resulted in 5 indictments and 12 convictions. Some of our more significant results for the
period are described below:
• Saggar & Rosenberg, P.C. (S&R), a certified independent public accounting firm,
working under a contract with and supervised by our office, assessed the accuracy,
completeness, and sufficiency of financial statement and other data used to certify the
wages, salaries, benefits, and other compensation amounts submitted and approved for
the Air Carrier Payroll Support Program (PSP1). For the following air carriers:
o Pegasus Elite Aviation, Inc.,
o XOJET Aviation, LLC, and
o Alpine Aviation, Inc.
S&R determined that the air carriers incorrectly reported information on its PSP1
Application to the Department of the Treasury (Treasury). S&R found Pegasus Elite
Aviation Inc., had $767,452 in questioned costs, XOJET Aviation, LLC. had $172,218
in questioned costs, and Alpine Aviation, Inc. reported $165,586 in questioned costs,
resulting in a total of $1.1 million in questioned costs.
• Our joint investigation revealed that a subject provided false documents to a financial
institution and obtained millions of dollars in loans. The subject was sentenced to
7 years of incarceration and $8.4 million in restitution.
• Our joint investigation determined that two subjects conspired to defraud the Treasury
by filing fraudulent Emergency Rental Assistance applications. The subjects were
sentenced to a total of 60 months of probation and $298,000 in restitution.
Treasury Office of Inspector General Semiannual Report—September 2022 i
Message from the Deputy Inspector General
This report summarizes the important work we completed during this semiannual reporting
period on a number of critical activities within the Department of the Treasury (Treasury). Over
the past 6 months, our office issued reports addressing programs established under the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Consolidated
Appropriations Act of 2021, and the American Rescue Plan Act, including the Emergency
Rental Assistance and Air Carrier Payroll Support Programs. Congress enacted this legislation
to provide unprecedented levels of financial assistance under stimulus programs to provide
much needed relief in response to the Coronavirus Disease 2019 (COVID-19) pandemic. We
continue to dedicate significant resources to oversight of these programs.
During this reporting period we also completed statutorily mandated work related to the
Federal Information Security Modernization Act of 2014, the Payment Information Integrity
Act of 2019, and the Geospatial Data Act of 2018.
In addition, as a member of the Council of Inspectors General on Financial Oversight (CIGFO),
we completed work related to our oversight of the Financial Stability Oversight Council (FSOC)
established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Since 2011, CIGFO has established working groups that are comprised of staff from CIGFO
member Inspector General offices to conduct reviews of FSOC operations. CIGFO convened
one such working group and in June 2022 and issued Guidance in Preparing for and Managing
Crises. This guidance is a compilation of lessons learned from the experiences of Federal
agencies during prior crises and during the current pandemic. This forward-looking guidance
will facilitate effective crisis response as FSOC fulfills its mission.
In keeping with its mission, CIGFO continues to monitor the ongoing response of FSOC and
its member agencies related to the COVID-19 public health and financial crisis, as well as
other risks. This past year, FSOC issued a report on climate-related financial risk in response to
Executive Order 14030, Climate-related Financial Risk, and a report on digital assets required
by Executive Order 14067, Ensuring Responsible Development of Digital Assets. Meanwhile,
the war in Ukraine has the potential to pose new challenges to financial stability that warrant
monitoring by FSOC and its member agencies.
I extend my sincere gratitude to our professional staff, who, after seamlessly transitioning to a
remote work environment, have continued to work with admirable diligence and creativity to
achieve the mission of this Office. The value-added work that our staff accomplished this
period is due to their commitment to excellence, continued growth, and dedicated work effort.
Thank you,
/s/
Richard K. Delmar
Deputy Inspector General
Treasury Office of Inspector General Semiannual Report—September 2022 ii
Contents
Highlights ..................................................................................................................... i
Message from the Deputy Inspector General .....................................................................ii
Treasury Office of Inspector General Overview ................................................................. 1
Management and Performance Challenges ....................................................................... 4
Office of Audit – Significant Audits and Other Products..................................................... 7
CARES Act Oversight ............................................................................................. 7
CARES Act Compliance Monitoring .......................................................................... 9
Cyber/Information Technology ................................................................................. 9
Geospatial Data Act ............................................................................................. 11
Financial Management .......................................................................................... 12
Other Audits or Products Issued Related to Treasury Programs and Operations ............ 15
Office of Investigations – Significant Investigations......................................................... 16
Treasury OIG Accomplishments and Activities ................................................................ 20
Treasury OIG Leadership Roles ............................................................................... 20
Statistical Summary .................................................................................................... 21
Summary of Treasury OIG Activities ....................................................................... 21
Metrics Used for Office of Investigations Activities ................................................... 21
Reports with Unimplemented Recommendations ...................................................... 22
Closed Investigations of Senior Government Employees Not Publicly Disclosed ............ 43
Summary of Instances of Whistleblower Retaliation .................................................. 46
Summary of Attempts to Interfere With Treasury OIG Independence, Including Instances
Where Information or Assistance Request was Refused............................................. 46
Listing of Audit Products Issued ............................................................................. 47
Audit Reports Issued With Questioned Costs ........................................................... 49
Audit Reports Issued With Recommendations that Funds Be Put to Better Use ............. 50
Reports for Which No Management Comment was Returned Within 60 Days ............... 51
Reports Issued Over 6 Months for Which No Management Decision Has Been Made ..... 51
Significant Revised Management Decisions .............................................................. 51
Significant Disagreed Management Decisions ........................................................... 51
Peer Reviews ....................................................................................................... 52
Treasury Office of Inspector General Semiannual Report—September 2022 iii
Contents
Other Reporting Requirements and Requests .................................................................. 53
References to the Inspector General Act ........................................................................ 54
Abbreviations ............................................................................................................. 55
Treasury Office of Inspector General Semiannual Report—September 2022 ii
Treasury Office of Inspector General Overview
The Department of the Treasury’s (Treasury) Office of Inspector General (OIG) was established
pursuant to the 1988 amendments to the Inspector General Act of 1978. Treasury OIG is
headed by an Inspector General appointed by the President with the advice and consent of the
Senate.
Treasury OIG performs independent, objective reviews of Treasury programs and operations,
except for those of the Internal Revenue Service, the Troubled Asset Relief Program, and
certain pandemic-related loans, loan guarantees, and other investments, and keeps the
Secretary of the Treasury and Congress fully informed of problems, deficiencies, and the need
for corrective actions. The Treasury Inspector General for Tax Administration performs
oversight related to the Internal Revenue Service. The Special Inspector General for the
Troubled Asset Relief Program performs oversight related to the eponymous Program. The
Special Inspector General for Pandemic Recovery performs oversight of loans, loan guarantees,
and other investments under the Coronavirus Economic Stabilization Act of 2020.
Treasury OIG also performs independent oversight of programs and operations funded by the
Gulf Coast Restoration Trust Fund established within Treasury by the Resources and
Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast
States Act of 2012 (RESTORE Act). In addition to performing oversight of Treasury-related
activities, Treasury OIG performs oversight of programs and operations administered by the
Gulf Coast Ecosystem Restoration Council (Council), established as an independent Federal
entity, and the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and
Technology Program. With regard to the Council and the Science Program, Treasury OIG keeps
the appointed Chairperson of the Council, the National Oceanic and Atmospheric
Administration Science Program Administrator, and Congress fully informed of problems,
deficiencies, and the need for corrective actions.
Treasury OIG has four components: (1) Office of Audit; (2) Office of Investigations; (3) Office
of Counsel; and (4) Office of Management. Treasury OIG is headquartered in Washington, DC.
The Office of Audit, under the leadership of the Assistant Inspector General for Audit,
performs and supervises financial and performance audits, attestation engagements, and
evaluations. The Assistant Inspector General for Audit also serves as the Special Deputy
Inspector General for Small Business Lending Fund (SBLF) Program Oversight. Under the
Assistant Inspector General for Audit, there are four deputies. The first deputy is primarily
responsible for financial sector audits to include audits of banking supervision, manufacturing
of currency and coins, resource management, procurement, alcohol and tobacco excise tax
revenue collection activities, SBLF programs, and the State Small Business Credit Initiative
authorized by the American Rescue Plan Act of 2021 (ARP). The second deputy is primarily
responsible for financial management and transparency audits to include financial audits of
Treasury and the Council performed by Treasury OIG staff and contractors; audits of
Treasury Office of Inspector General Semiannual Report—September 2020 1
Treasury Office of Inspector General Overview
Government-wide collection, payment, and debt programs and operations; audits of anti-
money laundering/terrorist financing, foreign sanctions, intelligence programs and operations,
and international programs; and audits of Emergency Rental Assistance (ERA) and Homeowner
Assistance Fund programs authorized by the Consolidated Appropriations Act, 2021 and ARP.
The third deputy is primarily responsible for cybersecurity and financial assistance audits to
include audits of Treasury and the Council information systems performed by Treasury OIG
staff and contractors; RESTORE Act programs and operations; the Emergency Capital
Investment Program and the Community Development Financial Institutions Rapid Response
Program authorized by the Consolidated Appropriations Act, 2021; and the State and Local
Fiscal Recovery Funds authorized by ARP. The fourth deputy is primarily responsible for the
Coronavirus Relief Fund and the Air Carrier Payroll Support programs authorized by the
Coronavirus Aid, Relief, and Economic Security Act.
The Office of Investigations, under the leadership of the Assistant Inspector General for
Investigations, conducts investigations and identifies initiatives to detect and prevent fraud,
waste, and abuse in programs and operations within Treasury OIG’s jurisdictional boundaries,
and investigates threats against Treasury personnel and assets in designated circumstances as
authorized by the Inspector General Act. The Office of Investigations also manages the
Treasury OIG online form to facilitate reporting of allegations involving these programs and
operations.
The Office of Counsel, under the leadership of the Counsel to the Inspector General, provides
legal advice to the Inspector General and all Treasury OIG components. The office represents
Treasury OIG in administrative legal proceedings and provides a variety of legal services,
including (1) processing Freedom of Information Act and Giglio 1 requests; (2) conducting
ethics training; (3) ensuring compliance with financial disclosure requirements; (4) reviewing
proposed legislation and regulations; (5) reviewing administrative subpoena requests; and
(6) preparing for the Inspector General’s signature, cease and desist letters and monetary
assessments against persons and entities misusing the Treasury seal and name. The Office of
Counsel also responds to media and Congressional inquiries and serves as the Whistleblower
Protection Coordinator for Treasury.
The Office of Management, under the leadership of the Assistant Inspector General for
Management, provides administrative services to maintain the Treasury OIG administrative
infrastructure, including facilities, human resources, information technology, procurement,
records management, and security.
Treasury OIG’s fiscal year 2022 appropriation was $42.3 million, which included up to
$2.8 million of 2-year funding for the RESTORE Act programs. Treasury OIG’s oversight of the
State Small Business Credit Initiative and SBLF programs is funded on a reimbursable basis. In
1
Giglio information refers to material that may call into question the character or testimony of a
prosecution witness in a criminal trial.
Treasury Office of Inspector General Semiannual Report—September 2022 2
Treasury Office of Inspector General Overview
addition to the annual fiscal year appropriation, Treasury OIG carried over additional multi-year
and no-year funding from the previous fiscal year for oversight of pandemic relief programs,
including the Coronavirus Relief Fund, ERA, and the Homeowner Assistance Fund. As of
September 30, 2022, Treasury OIG had 222 full-time staff.
Treasury Office of Inspector General Semiannual Report—September 2022 3
Management and Performance Challenges
The Reports Consolidation Act of 2000 requires that the Department of the Treasury
(Treasury) Inspector General annually provide his perspective on the most serious management
and performance challenges facing Treasury and the Gulf Coast Ecosystem Restoration
Council (Council). The following is a synopsis of our annual assessments, which are available,
in their entirety, on the Treasury Office of Inspector General (OIG) website.
Treasury
In an October 14, 2022, memorandum to Secretary of the Treasury, Janet Yellen,
Deputy Inspector General Richard Delmar reported the following five challenges facing
the Department, of which one was new.
• COVID-19 Pandemic Relief (Repeat)
• Cyber Threats (Repeat)
• Anti-Money-Laundering/ Terrorist Financing and Bank Secrecy Act Enforcement
(Repeat)
• Information Technology Acquisition and Project Management (Repeat)
• Climate Initiatives Risk (New)
Gulf Coast Ecosystem Restoration Council
In an October 12, 2022, letter to the Honorable Michael Regan, Administrator of the
U.S. Environmental Protection Agency, as Chairperson of the Council, we reported two
challenges, both are repeat challenges.
• Federal Statutory and Regulatory Compliance (Repeat)
• Grant and Interagency Agreement Compliance Monitoring (Repeat)
.
Treasury Office of Inspector General Semiannual Report—September 2022 4
Office of Audit – Significant Audits and Other Products
CARES Act Oversight
Our office’s oversight of the Air Carrier Payroll Support Program (PSP1) was mandated by
Title IV, Subtitle B, Air Carrier Worker Support, of the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act). Under the CARES Act, the Department of the Treasury (Treasury)
was to provide $32 billion in financial assistance to passenger air carriers, cargo air carriers,
and certain contractors exclusively used for the continuation of payment of employee wages,
salaries, and benefits, in response to the economic impact of the Coronavirus Disease 2019
(COVID-19). The Consolidated Appropriations Act, 2021 created the Airline Worker Support
Extension for passenger air carriers and certain contractors. Treasury refers to this as Payroll
Support Program Extension (PSP2). The American Rescue Plan of 2021 created the Air
Transportation Payroll Support Program Extension authorizing Treasury to provide additional
assistance to passenger air carriers and contractors that received financial assistance under
PSP2. Treasury refers to this as Payroll Support Program 3 (PSP3).
We are required to audit certifications made by passenger and cargo air carriers that do not
report salaries and benefits to the Department of Transportation (referred to as “non-241 air
carriers”) and contractors. During this semiannual reporting period, Saggar & Rosenberg, P.C.
(S&R), a certified independent public accounting firm, working under a contract with and
supervised by our office, performed the following audits of air carrier worker support
certifications.
Audit of Air Carrier Worker Support Certifications – Pegasus Elite
Aviation, Inc.
S&R determined that the passenger air carrier, Pegasus Elite Aviation, Inc., reported
correct information for three of the four sections reviewed on their PSP1 Application to
Treasury. These sections are: (1) Applicant Information, (2) Applicant Type, and
(3) Certification. However, S&R also determined that the air carrier incorrectly reported
information in the Awardable Amounts section, resulting in a $981,397 overstatement
in its awardable amount request. Specifically, S&R found that (1) averaging company
employee salary, wage, and benefits compensation, which also included unallowable
compensation paid to corporate officers, resulted in an overstatement and (2) the
inclusion of unallowable compensation related to employer-side payroll taxes and per
diem allowances resulted in an overstatement. Treasury’s awards to passenger air
carriers under PSP1 included a 78.2 percent pro rata distribution of application
amounts. Applying this formula, S&R found that the air carrier received a $767,452
overpayment from Treasury.
Treasury Office of Inspector General Semiannual Report—September 2022 7
Office of Audit – Significant Audits and Other Products
S&R recommended Treasury management (1) seek reimbursement of the $299,965
overpayment related to averaging salary, wage, and benefit costs, which is inclusive of
corporate officer compensation; (2) review the air carrier’s PSP2 and PSP3
certifications to determine if corporate officer compensation was requested and seek
reimbursement for the overpayment; (3) seek reimbursement of the $467,487
overpayment related to the inclusion of employer-side payroll taxes and per diem
allowances on the PSP1 Application; (4) review the air carrier’s PSP2 and PSP3
certifications to determine if employer-side payroll tax was requested and seek
reimbursement for the overpayment; and (5) review the air carrier’s PSP2 and PSP3
certifications to determine if per diem allowances were requested and seek
reimbursement for the overpayment. Management’s planned corrective actions met the
intent of the recommendations. (OIG-22-043, Redacted) $767,452 Questioned Costs
Audit of Air Carrier Worker Support Certifications – XOJET Aviation,
LLC
S&R determined that the passenger air carrier, XOJET Aviation, LLC, reported correct
information for three of the four sections reviewed on its PSP1 Application to Treasury.
These sections are: (1) Applicant Information, (2) Applicant Type, and (3) Certification.
However, S&R found the air carrier reported incorrect information in the Awardable
Amounts section of its PSP1 Application. The air carrier included unallowable corporate
officer compensation, resulting in an overstatement. Additionally, the air carrier’s
accrual-based financial accounting data used to prepare the PSP1 Application was less
than the actual compensation paid to its employees, resulting in an understatement of
the requested amounts. The net overstatement was $220,228. Since Treasury
disbursed PSP1 funds pro rata for passenger air carriers at 78.2 percent of the
requested awardable amount, the cargo air carrier received an overpayment of
$172,218.
Treasury awarded the air carrier $10 million under PSP2 and $9 million under PSP3.
S&R noted the air carrier’s inclusion of unallowable corporate officer compensation in
its audit of the air carrier’s PSP1 requested amount. It is likely that the air carrier
included corporate officer compensation in its PSP2 and PSP3 financial assistance
requests.
Accordingly, S&R recommended the Treasury’s Chief Recovery Officer (1) seek
reimbursement of the $172,218 overpayment of PSP1 financial assistance; and
(2) review the air carrier’s requested amount for unallowable expenses under PSP2 and
PSP3, and seek reimbursement for the overpayment, if applicable. Management’s
planned corrective actions met the intent of the recommendations. (OIG-22-041,
Redacted) $172,218 Questioned Costs
Treasury Office of Inspector General Semiannual Report—September 2022 8
Office of Audit – Significant Audits and Other Products
Audit of Air Carrier Worker Support Certifications – Alpine Aviation,
Inc.
S&R determined that the cargo air carrier, Alpine Aviation, Inc., reported correct
information for three of the four sections reviewed on their PSP1 Application to
Treasury. These sections are: (1) Applicant Information, (2) Applicant Type, and (3)
Certification. However, S&R found that the air carrier incorrectly reported information in
the Awardable Amounts section, resulting in a $165,586 overstatement of the
awarded amount. Specifically, S&R found (1) differences between accrual-based
general ledger accounting data used to prepare the PSP1 Application and the actual
compensation paid, and (2) inclusion of corporate officer compensation. As a result,
S&R questioned costs totaling $165,586.
S&R recommended the Treasury’s Chief Recovery Officer seek reimbursement of the
$165,586 overpayment of PSP1 financial assistance. Treasury management concurred
with the recommendation and agreed that any overpayments of PSP1 funds should be
recouped. Management’s planned corrective actions met the intent of the
recommendation. (OIG-22-042, Redacted) $165,586 Questioned Costs
CARES Act Compliance Monitoring
The CARES Act assigned us with responsibility for monitoring and oversight of the receipt,
disbursement, and use of Coronavirus Relief Fund (CRF) proceeds. To carry out our monitoring
responsibilities, we developed a portal via GrantSolutions, a grants management system under
U.S. Department of Health and Human Services, for CRF recipients to report expenditure data
on a quarterly basis. To date, CRF data has been collected up to and through September 30,
2022. This data is displayed on the Pandemic Response Accountability Committee’s (PRAC)
website (https://www.pandemicoversight.gov/).
Cyber/Information Technology
FISMA
The Federal Information Security Modernization Act of 2014 (FISMA) requires Inspectors
General to perform an annual, independent evaluation of their agency’s information security
program and practices. During this semiannual reporting period, we issued the following
reports on Treasury’s and the Gulf Coast Ecosystem Restoration Council’s (Council)
compliance with FISMA.
Treasury Office of Inspector General Semiannual Report—September 2022 9
Office of Audit – Significant Audits and Other Products
Fiscal Year 2020 Audit of Treasury’s Information Security Program
and Practices for Its Intelligence Systems
In our FISMA audit of Treasury’s intelligence systems for the audit period July 1, 2019,
through June 30, 2020, we reported unresolved deficiencies from the prior audit and
identified new matters that require management’s attention 2. Treasury management
concurred with the recommendations made in our report. Due to the sensitive nature of
these systems, this report is designated as classified. (OIG-22-036, Classified).
Fiscal Year 2022 Audit of Treasury’s Information Security Program
and Practices for Its Unclassified Systems
KPMG LLP (KPMG), a certified independent public accounting firm, working under a
contract supervised by our office, performed the annual FISMA audit of Treasury’s
unclassified systems for the period July 1, 2021, through March 31, 2022. The
Treasury Inspector General for Tax Administration performed the annual FISMA
evaluation of the Internal Revenue Services’ (IRS) unclassified systems. For fiscal year
2022, KPMG reported that Treasury’s information security program and practices for its
unclassified systems were established and maintained for the 5 Cybersecurity
Functions and 9 FISMA Metric Domains. KPMG assessed Treasury’s
information security program and practices for its unclassified systems as effective
according to DHS criteria, however, it noted 4 deficiencies within 3 of the 5
Cybersecurity Functions and within 4 of the 9 FISMA Metric Domains. KPMG made 8
recommendations to the responsible officials to address the identified deficiencies.
Treasury management concurred with the recommendations and prepared planned
corrective actions that were responsive to the intent of KPMG’s recommendations. Due
to the sensitive nature of these systems, this report was designated Sensitive But
Unclassified. (OIG-22-037, Sensitive But Unclassified)
Fiscal Year 2022 Audit of Treasury’s Information Security Program
and Practices for Its Collateral National Security Systems
KPMG also performed the annual FISMA audit of Treasury’s Collateral National Security
Systems for the period July 1, 2021, through March 31, 2022. KPMG reported that
Treasury’s information security program and practices for its Collateral systems were
established and maintained for 5 Cybersecurity Functions and 9 FISMA Metric
2
Due to the Coronavirus Disease 2019 (COVID-19) pandemic and social distancing protocols, the
Department of the Treasury (Treasury) had restricted access to secured space for our office to
complete the Federal Information Security Modernization Act (FISMA) Audit of Treasury’s Intelligence
Systems for fiscal years (FY) 2020 and 2021. Treasury has provided additional secured space to us.
We are working expeditiously to issue the FY 2021 and FY 2022 FISMA audit reports.
Treasury Office of Inspector General Semiannual Report—September 2022 10
Office of Audit – Significant Audits and Other Products
Domains. However, the program was not effective according to Department of
Homeland criteria. KPMG identified 2 deficiencies within 1 of the 5 cybersecurity
functions and within 2 of the 9 FISMA Metric Domains. KPMG made 5
recommendations to the responsible officials to address the identified deficiencies.
Treasury management concurred with the recommendations and prepared corrective
action plans that met the intent of KPMG’s recommendations. Due to the sensitive
nature of these systems, this report is designated Sensitive But Unclassified.
(OIG-22-038, Sensitive But Unclassified)
The Gulf Coast Ecosystem Restoration Council Federal Information
Security Modernization Act of 2014 Evaluation Report for Fiscal
Year 2022
RMA Associates, LLC (RMA), a certified independent public accounting firm, working
under a contract supervised by our office, performed the annual FISMA evaluation of
the Council’s security program and practices for the period July 1, 2021, through
March 31, 2022. RMA reported that the Council’s information security program and
practices were established and effective for the period. RMA did not make any
recommendations to the Council. Council’s management concurred with the report.
(OIG-CA-22-018)
Geospatial Data Act
Title VII, Subtitle F, Section 759(c) of the Geospatial Data Act of 2018 requires our office to
submit to Congress an audit of Treasury’s collection, production, acquisition, maintenance,
distribution, use, and preservation of geospatial data on a biennial basis. Treasury’s Office of
the Chief Information Officer is responsible for the oversight of implementing the Act at
Treasury. Of the Treasury bureaus, only the Alcohol and Tobacco Tax and Trade Bureau (TTB)
currently has reportable geospatial data. We issued the following biennial report on the
oversight of the Act during this semiannual reporting period.
Audit of Treasury’s Compliance with the Geospatial Data Act of
2018
We concluded that Treasury complied with the applicable 13 covered agency
responsibilities identified under Section 759(a) of the Act. However, we found that
standard quality review procedures performed by TTB for ensuring that American
Viticultural Areas (AVA) are mapped correctly in the AVA Map Explorer were not
formally documented. We recommended that the Administrator of TTB ensure that TTB
documents its standard quality review procedures for mapping AVAs in its AVA Map
Explorer. Both Treasury’s Office of the Chief Information Officer and TTB management
Treasury Office of Inspector General Semiannual Report—September 2022 11
Office of Audit – Significant Audits and Other Products
concurred with our finding and recommendation. Management’s response and planned
corrective action met the intent of our recommendation. (OIG-22-040)
Financial Management
Payment Integrity Information Act of 2019
RMA, a certified independent public accounting firm, working under a contract with and
supervised by our office, performed an audit of Treasury’s compliance with the Payment
Integrity Information Act of 2019 (PIIA) for fiscal year 2021. In its audit, RMA also assessed
Treasury’s compliance with additional improper payment reporting requirements set forth in
Executive Order 13520, Reducing Improper Payments and Eliminating Waste in Federal
Programs. Office of Management and Budget (OMB) Circular No. A-123, Appendix C,
Requirements for Payment Integrity Improvement and OMB Circular No. A-136, Financial
Reporting Requirements. Our office performed the audit of the Council compliance with PIIA
for fiscal year 2021.
Treasury PIIA for Fiscal Year 2021
RMA reported that Treasury was not in compliance with PIIA for fiscal year 2021 due
to the IRS not (1) conducting a risk assessment for the Sick and Paid Family Leave
Credit and the Employee Retention Tax Credit as required; (2) adequately concluding on
the susceptibility of the U.S. Coronavirus Economic Impact Payment program to
improper payments; and (3) reporting an improper payment rate of less than 10 percent
for three of its programs identified as susceptible to significant improper payments.
RMA reported that Treasury complied with the other seven PIIA requirements. In
addition, RMA identified inaccurate responses by management officials of the Bureau of
the Fiscal Service (Fiscal Service), the Exchange Stabilization Fund, and the Office of
the Assistant Secretary for International Affairs to some risk assessment questions for
certain qualitative risk assessment fund groups. RMA also noted that Treasury’s Risk
and Control Group (RCG) provided incomplete and inaccurate reporting of Fiscal
Service’s and Office of D.C. Pensions’ payment recapture information as part of the
annual OMB data call.
RMA recommended: (1) RCG work with management at the Fiscal Service, the
Exchange Stabilization Fund, and the Office of the Assistant Secretary for International
Affairs to complete a proper review of the program-specific risk assessments to better
ensure management responses to risk assessment questions are accurate and that
(2) RCG perform a sufficient review of the annual OMB data call to ensure the
information published on paymentaccuracy.gov is complete and accurate. Treasury
management concurred with RMA’s recommendations. Management’s response and
planned corrective action met the intent of RMA’s recommendations. (OIG-22-035)
Treasury Office of Inspector General Semiannual Report—September 2022 12
Office of Audit – Significant Audits and Other Products
Gulf Coast PIIA for Fiscal Year 2021
We determined that the Council did not comply with 2 of the 10 applicable
requirements of PIIA for fiscal year 2021. Specifically, Council did not publish its
payment integrity information with the annual financial statement in accordance with
OMB Circular A-136 and did not adequately conclude whether its programs are likely to
make improper and unknown payments above or below the statutory threshold.
We recommended that the Council (1) consult OMB M-21-19 or its subsequent
revisions and OMB Circular A-136 annually to determine the payment integrity reporting
requirements applicable to their agency; (2) report payment integrity information to the
OMB Annual Data Call in accordance with OMB guidance; (3) consult OMB M-21-19,
Transmittal of Appendix C to OMB Circular A-123, Requirements for Payment Integrity
Improvement, to determine the required risk assessment factors and methodology for
its agency; (4) include unknown payments in its improper payment risk assessment;
and (5) adequately conclude whether its programs are likely to make improper
payments and unknown payments above or below the statutory threshold. Council
management concurred with our recommendations. Management’s response and
planned corrective action met the intent of our recommendations. (OIG-22-034)
Attestation Engagements
RMA and KPMG, certified independent public accounting firms, working under a contract with
and supervised by our office, completed the reports described below in support of the audit of
Treasury’s fiscal year 2022 consolidated financial statements and the financial statement
audits of certain other Federal agencies.
Reports on the Processing of Transactions by Treasury Enterprise
Applications
RMA examined Treasury Enterprise Applications’ description of controls for processing
user entities’ human resource transactions in its HRConnect system; and the suitability
of the design and effectiveness of these controls for the period beginning July 1, 2021
and ending June 30, 2022. RMA found, in all material respects, the controls were fairly
presented in the description of controls for this system, suitably designed, and controls
tested operated effectively throughout the period. (OIG-22-044)
Reports on the Processing of Transactions by Fiscal Service
KPMG examined the accounting and procurement processing and general computer
controls related to financial management services provided to various Federal agencies
by Fiscal Service’s Administrative Resource Center for the period July 1, 2021, to
Treasury Office of Inspector General Semiannual Report—September 2022 13
Office of Audit – Significant Audits and Other Products
June 30, 2022. KPMG found, in all material respects, that the controls were fairly
presented in the description of controls for these activities and suitably designed.
KPMG also found that controls tested operated effectively throughout the period.
(OIG-22-039)
Federal Financial Management Improvement Act
The following instances of noncompliance with the Federal Financial Management
Improvement Act of 1996 were reported in connection with the audit of Treasury’s fiscal year
2021 consolidated financial statements.
Type of
Condition noncompliance
Treasury continues to have deficiencies in IRS financial reporting systems. Specifically, Federal financial
Treasury did not consistently design, implement, and operate information system controls management system
and security programs over its financial reporting systems in accordance with the Federal requirements
financial management system requirements. (First reported in fiscal year 1997)
Treasury has deficiencies in Fiscal Service government-wide cash and Federal debt Federal financial
management information systems. Specifically, Fiscal Service did not consistently design, management system
implement, and operate information system controls and security programs over its cash requirements
and Federal debt systems in accordance with the Federal financial management system
requirements. (First reported in fiscal year 2018)
The status of these instances of noncompliance, including progress in implementing
remediation plans, will be evaluated as part of the audit of Treasury’s fiscal year 2022
consolidated financial statements.
Treasury Office of Inspector General Semiannual Report—September 2022 14
Office of Audit – Significant Audits and Other Products
Other Audits or Products Issued Related to Treasury Programs
and Operations
This section addresses certain reporting requirements of our office that are separate from the
reporting requirements in the Inspector General Act of 1978 (as amended).
Inquiry on Use of Pandemic Relief Funds for Increased Broadband
Access to Unserved Communities
We performed an inquiry in response to a request from the Ranking Member of the
Senate Committee on Commerce, Science, and Transportation to the Pandemic
Response Accountability Committee (PRAC) to prioritize a study of programs funding
broadband services and coordinate reviews among the oversight community. To assist
the PRAC with the request, we obtained responses from Treasury’s Office of Recovery
Programs to questions specifically directed at Treasury’s role in ensuring that
broadband funding serves unserved persons or communities. (OIG-CA-22-020)
Council of Inspectors General on Financial Oversight – Guidance in
Preparing for and Managing Crises
The Council of Inspectors General on Financial Oversight convened a Working Group to
compile forward-looking guidance for the Financial Stability Oversight Council (FSOC)
and its members to consider in preparing for and managing a crisis. The guidance is a
compilation of lessons learned drawn from the experiences of Federal agencies during
prior crises and any learned during the current pandemic. This forward-looking guidance
will facilitate effective crisis response as FSOC fulfills its mission to identify threats to
the financial stability of the country, promote market discipline, and respond to
emerging threats to the stability of the U.S. financial system.
The guidance did not assess the degree to which the FSOC member agencies employ
any of the actions or activities discussed. The Working Group did not make any
recommendations to FSOC as a result of this effort. (CIGFO-2022-01)
Treasury Office of Inspector General Semiannual Report—September 2022 15
Office of Investigations – Significant Investigations
Subject Sentenced in Bank Fraud Investigation
On June 1, 2022, a subject was sentenced to 84 months’ incarceration, 36 months’
probation, and $8.4 million in restitution. The subject provided false documents to a financial
institution and fraudulently obtained millions in loans under false pretenses. The United States
Attorney's Office (USAO) for the Northern District of Oklahoma prosecuted our joint
investigation with Internal Revenue Service - Criminal Investigation, Federal Bureau of
Investigation (FBI), and Federal Deposit Insurance Corporation – Office of Investigations.
Subjects Sentenced for ERA Fraud
On April 25, 2022, subjects in our joint investigation with the Fort Bend County, Texas
District Attorney's Office (DAO) were sentenced. Two subjects conspired to defraud the
Treasury by filing fraudulent applications for Emergency Rental Assistance (ERA). The subjects
were sentenced to a total of 60 months’ probation and $298,000 in restitution. The Fort Bend
County, TX DAO prosecuted the case.
Former Government Employee Sentenced for Procurement Card Theft
On May 19, 2022, the Department of the Treasury (Treasury) Office of Inspector General
(OIG) completed its report of investigation for a case initiated upon receipt of information from
the Bureau of Fiscal Service that an employee was using a procurement card to illegally
purchase items for her own benefit. The employee pled guilty and was sentenced to 36
months’ probation and $37,000 in restitution. The USAO for the Southern District of West
Virginia prosecuted the case.
Subject Sentenced for Making False Statement to Obtain ERA
On May 18, 2022, the OIG completed its report of investigation for a case initiated upon
receipt of an anonymous tip regarding an ERA recipient falsifying their ERA application to
fraudulently receive funds. The complaint alleged the subject used a previous address
belonging to a separate family member to receive assistance, although the subject no longer
resided at the residence. Our investigation determined the subject falsified records to
fraudulently obtain ERA funds through Manatee County, Florida. The subject was sentenced to
1 month’ incarceration, 60 months’ probation, 4 days community service, and $7,500 in
restitution. This matter was investigated by the Manatee County Sheriff’s Office and
prosecuted by the State Attorney's Office for the Twelfth Judicial District of the State of
Florida.
Treasury Office of Inspector General Semiannual Report—September 2022 16
Office of Investigations – Significant Investigations
ERA Program Fraud
On September 23, 2022, the OIG completed its reports of investigation for two cases initiated
upon information from the Missouri Housing Development Commission concerning ERA
program fraud. Our investigation determined that two individuals received $52,000 in ERA
funds as a landlord, but they were not the owner of the properties reported. Criminal
prosecution of the individuals was presented and declined by the USAO for the Eastern District
of Missouri.
Former Bank President Sentenced
On June 28, 2022, the OIG completed its report of investigation for a case that was initiated
upon receipt of information from the FBI regarding a bank president who allegedly embezzled
bank funds, and stole from customer accounts to include a non-profit, and elderly citizens'
accounts. Our investigation determined the bank officer fraudulently paid for personal
expenses with others’ bank funds. The subject pled guilty to Theft by a Bank Officer and was
sentenced to 24 months’ probation, a $4,000 fine, and forfeiture of $16,000. The USAO for
the Eastern District of Texas prosecuted the joint Treasury OIG and FBI case.
Time and Attendance Misconduct by FinCEN Employee
On September 22, 2022, the OIG completed its report of investigation for a case initiated
upon receipt of information that a Financial Crimes Enforcement Network (FinCEN) employee
was falsifying the reporting of her time and attendance (WebTA) by reporting more hours than
worked. Our investigation substantiated the allegations, and the bureau revoked the subjects’
access to classified information.
Allegations of Misuse of CDFI Grant Funds Unsubstantiated
On June 27, 2022, the OIG completed its report of investigation for a case initiated upon
receipt of information from a Whistleblower that a Community Development Financial
Institutions Fund (CDFI) awardee had misused funds and was terminated from his employment
when he notified the organization's management. The organization also received federal funds
from the U.S. Department of Agriculture (USDA) and the Appalachian Regional Commission
(ARC). The complainant reached a settlement with the organization and withdrew his
complaint. Our joint investigation with the USDA-OIG and ARC-OIG provided there were no
findings of misconduct related to the misuse of grant funds and the allegations were
unsubstantiated.
Treasury Office of Inspector General Semiannual Report—September 2022 17
Office of Investigations – Significant Investigations
Stolen Identities Used to Apply for ERA
On August 31, 2022, the OIG completed its report of investigation for a case initiated upon
receipt of information concerning fraudulent ERA applications submitted with stolen identities
of medical professionals. Our investigation determined that one fraudulent ERA application
was awarded; however, the ERA funds were returned to the ERA program by the financial
institution after confirming fraudulent activity. Criminal prosecution was presented and
declined by the USAO for the Middle District of Pennsylvania.
Hundreds of Fraudulent CERTS Program Applications Submitted Without
Success
On April 15, 2022, the OIG completed its report of investigation for a case initiated upon
notification that unknown persons submitted hundreds of fraudulent Coronavirus Economic
Relief for Transportation Services (CERTS) applications in an effort to receive Coronavirus
Disease 2019 (COVID-19) related financial assistance. Treasury personnel identified each
fraudulent application and denied payment. Criminal prosecution was presented and declined
by the USAO for the Middle District of Pennsylvania.
Fraudulent CERTS Program Applications Verified with Stolen Identifies
On July 11, 2022, the OIG completed its report of investigation for a case initiated upon
notification of unidentified persons who submitted thousands of fraudulent CERTS
applications. Our investigation determined that the identities associated with the fraudulent
applications were verified by an identity verification company; however, the identities were
obtained through illicit means. The investigation did not find evidence the vendor violated
conditions of the contract. The case was presented for civil prosecution and declined by the
Department of Justice, Civil Division, and the USAO for the Middle District of Pennsylvania.
Georgia Department of Revenue Employees Produced False Statements to
Obtain Information from FinCEN
On July 18, 2022, the OIG completed its Report of Investigation for a case initiated upon
receipt of information regarding Georgia Department of Revenue (GDOR) personnel making
false statements to obtain financial information through FinCEN. The GDOR employees falsely
certified the GDOR had a significant money laundering investigation on individuals that were
submitted to FinCEN to obtain financial information. The employees involved with the improper
use of the law enforcement tools have been removed from government service. The case was
presented and declined for prosecution the USAO for the Northern District of Georgia.
Treasury Office of Inspector General Semiannual Report—September 2022 18
Office of Investigations – Significant Investigations
Misconduct by Mint Police Officer Substantiated
On July 1, 2022, the OIG completed its report of investigation for a case initiated upon receipt
of information from the OIG Complaint Hotline, alleging that a United States Mint (Mint) Police
Officer knowingly submitted an altered training request. Our investigation determined an
original training request was submitted and denied, then a second request for the same
training class was submitted and approved, containing false course dates. Criminal prosecution
was presented and declined by the USAO for the Southern District of New York. A report was
provided to the Mint for appropriate action.
Website Advertising Sale of Coins Using Mint Seal
On July 25, 2022, the OIG completed its report of investigation for a case initiated upon
receipt of information from the Mint concerning a website advertising coins for sale utilizing
the Mint seal without permission. Our investigation determined that the website did not
explicitly state that they were selling coins directly from the Mint but displayed the Mint seal
within the website. Prior to issuing a Cease-and-Desist letter, the website was removed.
Treasury Office of Inspector General Semiannual Report—September 2022 19
Treasury OIG Accomplishments and Activities
OIG Led Accounting Workshops
Andrea Smith, Audit Director, with the Assistance of Nikki Holbrook, Auditor, led a half-day
workshop that the Department of the Treasury (Treasury) Office of Inspector General (OIG)
hosted for the National Association of Black Accountants, Inc. Accounting Career Awareness
Program on July 18, 2022, in Washington, DC. The program’s primary objective is to increase
the understanding of accounting and business career opportunities among high school
students from underrepresented ethnic groups. The program, a one-week residency program at
Howard University, introduced students to accounting, finance, economics, and management
through a focused, undergraduate-level program taught by college faculty and guest lecturers
from business and Government. During the week, students had the opportunity to attend
classes on careers in accounting and business, personal development, college preparation, and
tour college campuses, local companies, and certified public accounting (CPA) firms. The
OIG’s workshop encouraged students to learn about auditing and other career disciplines in
the Federal Sector through technical sessions and teambuilding exercises.
Andrea Smith also led a half-day workshop that the OIG hosted for the Howard University’s
School of Business Center for Accounting Education Accounting Scholars Development
Program on July 19, 2022. The program is a residential summer program that gives minority
community college students a glimpse of university life and the accounting profession. The
program offers a range of academic and professional activities that promote transfer to a
bachelor's degree-granting institution to be eligible for the Certified Public Accountant (CPA)
license. The program is a week-long program focused exclusively on accounting. Participants
engage in rigorous, hands-on sessions taught by senior accounting faculty and experts from
CPA firms, the Internal Revenue Service, and OIG. Sessions are designed to provide
participants with the skills needed to successfully manage the transition from community
college, knowledge about the accounting curriculum and profession, and confidence to
establish leadership cohorts to support them through academia.
Treasury OIG Leadership Roles
Treasury OIG professionals serve on various important public and private professional
organizations supporting the Federal audit community. Examples of participation in these
organizations follow:
Deborah Harker, Assistant Inspector General for Audit, serves as the Chair of the Council of
the Inspectors General on Integrity and Efficiency’s (CIGIE) Federal Audit Executive Council.
Donna Joseph, Deputy Assistant Inspector General for Cyber and Financial Assistance Audits,
serves as the National Single Audit Coordinator for Treasury.
Treasury Office of Inspector General Semiannual Report—September 2022 20
Statistical Summary
Summary of Treasury OIG Activities
April 1, 2022, through September 30, 2022
Number or
OIG Activity Dollar Value
Office of Counsel Activities
Regulation and legislation reviews 12
Instances where information was refused 0
Office of Audit Activities
Reports issued and other products 22
Disputed audit recommendations 0
Significant revised management decisions 0
Management decision in which the Inspector General disagrees 0
Monetary benefits (audit)
Questioned costs $1,105,256
Funds put to better use $0
Total monetary benefits $0
Office of Investigations Activities*
Criminal and judicial actions (including joint investigations)
Investigative reports issued 96
Cases referred for prosecution and/or litigation 30
Individuals referred for criminal prosecution to the Department of Justice 38
Individuals referred for criminal prosecution to state and local authorities 3
Cases accepted for prosecution and/or litigation 3
Arrests 0
Indictments/informations 5
Convictions (by trial and plea) 12
* During the reporting period defendants were sentenced to 168 months of prison time, 150 months of
probation, 6 months of home detention, and ordered to pay fines, restitution, and court fees in the amount
of $8,524,868.95, and seizures and forfeitures in the amount of $16,000.00.
Metrics Used for Office of Investigations Activities
Department of the Treasury (Treasury) Office of Inspector General (OIG) investigative statistics
listed above were obtained through reports drawn from Treasury OIG’s Office of Investigations
case management system.
Treasury Office of Inspector General Semiannual Report—September 2022 21
Statistical Summary
Reports with Unimplemented Recommendations
Issued prior to April 1, 2022
The following list of Treasury OIG reports with unimplemented recommendations is based on
information in Treasury’s automated audit recommendation tracking system, which is
maintained by Treasury management officials, and recommendations tracked by other Federal
organizations related to Treasury OIG’s oversight of the Resources and Ecosystems
Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of
2012 programs and activities of the Gulf Coast Ecosystem Restoration Council (Council) and
the National Oceanic and Atmospheric Administration’s Gulf Coast Ecosystem Restoration
Science, Observation, Monitoring, and Technology Program, and the U.S. Customs and Border
Protection.
Treasury OIG is reporting 185 open and unimplemented recommendations for 34 reports
issued prior to April 1, 2022. Treasury OIG has $66,686 in potential cost savings on one of
the reports.
Treasury OIG considers all unimplemented recommendations for reports issued over 6 months
to be significant.
Treasury Programs and Operations
Fiscal Report Number Report Title Date
Year Issued
2016 OIG-16-010 INFORMATION TECHNOLOGY: Department of the 11/15
Treasury Federal Information Security
Modernization Act Fiscal Year 2015 Performance
Audit
1. The United States Mint (Mint) management ensures that its third-party cloud
service provider provides Federal Information Security Modernization Act of 2014
related artifacts to demonstrate Federal Information Security Modernization Act of
2014 compliance to the Mint security compliance team. Management agreed with
the recommendation.
Fiscal Report Number Report Title Date
Year Issued
2016 OIG-16-059 GENERAL MANAGEMENT: Treasury Has Policies 09/16
and Procedures to Safeguard Classified
Information but They Are Not Effectively
Implemented
1. The Assistant Secretary for Intelligence and Analysis should direct the Deputy
Treasury Office of Inspector General Semiannual Report—September 2022 22
Statistical Summary
Assistant Secretary for Security to update the Treasury Security Manual to include
procedures requiring the Office of Security Programs to follow up and obtain all
bureau self-inspection reports. Management agreed with the recommendation.
Fiscal Report Number Report Title Date
Year Issued
2018 OIG-18-018 TERRORIST FINANCING/MONEY LAUNDERING: 11/17
OFAC Human Resources Practices Need
Improvement
1. The Office of Foreign Assets Control (OFAC) Director should ensure that legacy
employees' current position descriptions are evaluated to ensure that the
documented promotion potential of these nonsupervisory employees is consistent
with OFAC's current promotion practices. Management agreed with the
recommendation.
Fiscal Report Number Report Title Date
Year Issued
2018 OIG-18-044 TERRORIST FINANCING/MONEY LAUNDERING: 04/18
Audit of the Office of Intelligence and Analysis’
Authorities and Actions Related to U.S. Persons’
Financial Information
1. The Under Secretary for Terrorism and Financial Intelligence, as expeditiously as
possible, should ensure that the Office of Intelligence and Analysis’ U.S. Persons
Procedures are finalized and submitted for approval to the Attorney General of the
United States.
2. Implement a compliance monitoring program to assess whether intelligence
analysts' activities are conducted in accordance with Office of Intelligence and
Analysis authorities, and electronic searches and other queries are performed in a
manner that fully protects the rights of U.S. persons. Management agreed with the
recommendations.
Fiscal Report Number Report Title Date
Year Issued
2019 OIG-19-007 INFORMATION TECHNOLOGY: Department of the 10/18
Treasury Federal Information Security
Modernization Act Fiscal Year 2018 Performance
Audit
1. Treasury Inspector General for Tax Administration (TIGTA) management should
establish a current enterprise baseline of software and related configurations for
the TIGTA System.
2. Develop and disseminate to TIGTA personnel a TIGTA System Information System
Contingency Plan that addresses purpose, scope, roles, responsibilities,
management commitment, coordination, and compliance to facilitate the
implementation of the contingency planning policy and associated contingency
Treasury Office of Inspector General Semiannual Report—September 2022 23
Statistical Summary
planning controls. TIGTA should conduct disaster recovery and business continuity
testing for the TIGTA System on the frequency stipulated by a Business Impact
Analysis. Management agreed with the recommendations.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-003 INFORMATION TECHNOLOGY: Department of the 10/19
Treasury Federal Information Security
Modernization Act Fiscal Year 2019 Performance
Audit
1. Bureau of the Fiscal Service (Fiscal Service) management should protect the
confidentiality and integrity of transmissions by encrypting Fiscal Service System 2
data in transit as required by National Institute of Standards and Technology
Special Publication 800-53 Revision 4, Security and Privacy Controls for Federal
Information Systems and Organizations.
2. Mint management should finalize and implement its bureau-wide privacy program
that includes a strategic organizational privacy plan for implementing applicable
privacy control and procedures in accordance with National Institute of Standards
and Technology Special Publication 800-53
Treasury Office of Inspector General Semiannual Report—September 2022 24
Statistical Summary
3. Mint management should establish sufficient controls to ensure
supervisors/managers are held accountable for the completion of the role-based
specialized information technology security training by their employees with
security roles and responsibilities. Management agreed with the recommendations.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-007 DATA ACT: Treasury Continues to Make Progress 11/19
in Meeting its DATA Act Reporting Requirements
1. Treasury's Assistant Secretary for Management, working as needed with
Treasury's Senior Accountable Official, the Senior Procurement Executive,
reporting entities, the Program Management Office, and the Office of Management
and Budget should develop and implement a method and procedures to submit
Treasury Forfeiture Fund financial assistance award data to the Financial
Assistance Broker Submission in accordance with the reporting submission
specifications established by the Digital Accountability and Transparency Act
(DATA Act) Information Model Schema. Management agreed with the
recommendation.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-022 FINANCIAL MANAGEMENT: Management Report 12/19
for the Audit of the Department of the Treasury's
Consolidated Financial Statements for Fiscal Years
2019 and 2018
1. Fiscal Service management should address the mainframe operating system
vulnerabilities noted in the condition as soon as possible.
2. Develop a tailored mainframe operating system security configuration baseline that
specifies how security configuration options are to be set based on the selected
industry guidance.
3. Ensure that the chief information security officer assigns specific responsibility for
providing controls over operating system security, including access permissions to
all system datasets and all security-related option settings.
4. Develop and document controls over changes and monitor update access to all key
system datasets.
5. Develop and document controls and baseline documentation of mainframe
operating system options specified in the configuration files.
6. Establish which techniques are to be used to control update access to key system
datasets and to control read access to sensitive system datasets (such as the
security software database and the page files), whether a third-party tool is to be
used, or tailored change control mechanisms, and develop procedures and
documentation to support their use.
7. Develop procedures to provide assurance that programs installed with the
Treasury Office of Inspector General Semiannual Report—September 2022 25
Statistical Summary
privileges of the operating system (whether purchased from software vendors or
internally developed) do not introduce security weaknesses.
8. Develop, document, and implement policies, procedures, and controls to conduct
periodic reviews of actual mainframe security software settings against the
security baseline.
9. Develop a mainframe security software risk assessment process using the Defense
Information Systems Agency Security Technical Implementation Guide (STIG) as a
guideline.
10. Develop a tailored mainframe security software configuration baseline that
specifies how security configuration options should be set based on the industry
guidance. As part of this action, management should develop and document a
baseline specifying for each possible setting in the security software control file
how the option should be set and who is responsible for approving the setting.
11. Use the mainframe security software configuration baseline to harden the
mainframe environment, including the Payment Authorization Manager and
Payments, Claims, and Enhanced Reconciliations production.
12. Remove duplicate and excessive permissions in the mainframe security software
database.
13. Perform an annual comparison of each actual setting in the mainframe security
software control file to each setting specified in the baseline to verify compliance
with the baseline.
14. Develop and document procedures for controlling updates to the mainframe
security software control file.
15. Define and document the segregation of functions and privileges based on the
principle of least privilege for mainframe security software and operating system.
16. Review and establish access permissions to the mainframe system and security
software based on the principle of least privilege access.
17. Review and re-assess each access permission in the mainframe security software
dataset and resource rules on a periodic basis.
18. Develop procedures and documentation to establish the following for each dataset
permission, resource permission, and mainframe security software privilege: a.
Responsibility for approving access and enforcing compliance with the principle of
least privilege; b. Actual access meets the principle of least privilege; and c. Any
discrepancy from approved access will be identified and corrected.
19. Develop, document, and implement policies, procedures, and controls for
comprehensive logging and monitoring of events. Procedures and controls should
include an annual re-assessment of whether logging and reporting is adequate.
20. Review and determine which profiles, applications, databases, and other processes
on the mainframe will be logged and reviewed.
21. Assess all mainframe logs to determine which logs should be evaluated by the
incident management tool.
Treasury Office of Inspector General Semiannual Report—September 2022 26
Statistical Summary
22. Establish appropriate alerts and event thresholds for those mainframe logs required
to be evaluated by the external tracking tool.
23. Develop and implement data and analysis tools and processes for identifying event
trends, patterns, spikes, and exceptions.
24. Identify non security related purposes for logging and monitoring (including
performance tuning, problem management, capacity planning, and management of
service level agreements); assign responsibility for addressing and integrating them
with security uses of logging and monitoring.
25. Identify the possible sources of log information; determine how each is to be used
for security monitoring; and develop procedures to ensure that each type of
logging which is necessary for effective security monitoring is activated.
26. Annually assess the effectiveness of security logging and monitoring, ensuring that
the volume of logged events is limited to just those that are needed for security,
and ensuring that monitoring results include effective identification and response
for any violations and for any significant trends (such as an increase in the number
of password resets for a given group of users or repetition of the same attempted
but failed attempt to access a productions dataset or resource).
27. Identify, document, and assess the mainframe security controls affecting the
system software to fully describe how mainframe security is provided. These Fiscal
Service management controls should include a. Specific assignment of
responsibility for maintaining operating security, b. Skill assessment and
remediation for operating system security maintenance, c. Baseline documents for
mainframe configuration files, d. Standard procedures for review and maintenance
of operating system security, and e. Standard procedures to compare actual
configuration settings to baseline documents.
28. Update mainframe documentation to be consistent with Fiscal Service and
Treasury Directive Publication 85-01, Department of the Treasury Information
Technology Security Program.
29. Develop procedures and documentation to establish who is responsible and how
effective security is achieved for controls.
30. Implement an oversight process to determine that designated Fiscal Service
personnel review and reevaluate privileges associated with the UNIX production
environment semiannually for privileged accounts.
31. Configure the systems-management software agents to include all UNIX servers,
databases, and users' accounts within the UNIX environment when generating the
users' lists for the semiannual review and recertification process so that all
privileged and non-privileged users' access is reviewed.
32. Update UNIX semiannual account review and recertification procedures to include
quality control steps to validate that systems-management software is generating
complete and accurate account listings for all UNIX servers and databases
privileged and non-privileged user accounts within the UNIX environment prior to
completing the review and recertification process.
Treasury Office of Inspector General Semiannual Report—September 2022 27
Statistical Summary
33. Finalize policies and procedures to review audit logs of production DB2 servers.
34. Implement an oversight process to ensure that designated Fiscal Service personnel:
a. Review the security logs for the UNIX and DB2 servers hosting the Payment
Information Repository (PIR), Judgment Fund Internet Claim System (JFICS), and
Security Payment System (SPS) applications on a predefined frequency, as
indicated in the Fiscal Service Baseline Security Requirements. b. Formally
document the completion of their reviews and any escalations to the Information
System Security Office, and c. Retain the audit logs and documentation of their
reviews for 18 months, as required by the Baseline Security Requirements.
35. Periodically review Fiscal Service management's implementation and operation of
the review of the security audit logs for the UNIX and DB2 servers hosting the PIR,
JFICS, and SPS applications to determine that Fiscal Service management
completes the reviews on a pre-defined basis, documents completion of the
reviews and escalations, and maintains such documentation.
36. Establish an effective enforcement process or mechanism to ensure that a. UNIX
and DB2 events and monitoring controls are followed, and b. Fiscal Service
management has confidence it consistently reviews for potential unauthorized or
inappropriate activity.
37. Update its current PIR security procedures to require that management obtain
current PIR developer access requirement listings from the service provider and use
them when validating the appropriateness of PIR developer access during the
semiannual access reviews and recertification of the PIR and UNIX environments.
38. Maintain the documentation used to review and recertify the access of the known
PIR service provider developers evidencing that their access to the UNIX
environments is commensurate with their job functions and responsibilities.
39. Ensure that developers do not have the ability to make changes to the PIR
production environment.
40. Remove users' access once validated by the Federal Program Agency during the
SPS annual user access review.
41. Retain evidence of recertification of all users.
42. Oversee the recertification process and ensure that access corrections are
processed once received from the Federal Program Agency.
43. Remove and disable the two users' access immediately.
44. Implement a quality control process to ensure that PIR application accounts defined
to the PIR production environment that have been inactive for over 120 days are
disabled.
45. Develop and implement documentation to assign responsibility for ensuring
adequacy of UNIX and database security and baseline settings.
46. Update existing UNIX and database configuration security baseline documents to
ensure that these documents fully incorporate and enforce the components of the
Defense Information Systems Agency STIG. Management should document any
Treasury Office of Inspector General Semiannual Report—September 2022 28
Statistical Summary
deviations from the STIG and note compensating controls that mitigate the
security risk to an acceptable level.
47. Develop, document, and implement policies, procedures, and controls to conduct
periodic reviews of actual UNIX and database settings against the security
configuration baselines.
48. Provide logging and monitoring of security-related events to include the retention
of evidence of reviews performed.
49. Develop a baseline of essential security settings and specify that baseline as the
standard to be observed.
50. Implement corrective actions to address all vulnerabilities associated with the
baseline enforcement to include removing the three default user accounts on UNIX
servers. Management agreed with the recommendations.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-023 BILL AND COIN MANUFACTURING: BEP Improved 12/19
Governance and Oversight over Note Development
and Production But Challenges Remain
1. The Director of the Bureau of Engraving and Printing (BEP) should finalize the
required 5-year update of the memorandum of understanding with the Board of
Governors of the Federal Reserve System (Board) to formalize BEP and the Board's
responsibilities and authorities related to notes including activities, procedures, and
obligations related to the annual production, destruction, and research and
development of notes. Management agreed with the recommendation.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-027 RESOURCE MANAGEMENT: Audit of the 02/20
Department of the Treasury Departmental Offices
Executive Pay Adjustments, Bonuses, and Awards
1. Treasury's Assistant Secretary for Management should ensure that the Office of
the Deputy Assistant Secretary for Human Resources and Chief Human Capital
Officer (DASHR/CHCO) and the Office of Executive Resources (OER) develop,
implement, and include effective internal controls within its policies and standard
operating procedures (SOP) to ensure Treasury's Senior Executive Service (SES)
basic pay rates are in compliance with 5 CFR 534.403(a)(3)(b), Suspension of
certification of performance appraisal system and 5 CFR 534.404 (h)(2), Setting
pay upon transfer.
2. DASHR/CHCO and OER calculate the overpayment amounts for the two
Departmental Office (DO) SES members whose pay was set higher than allowed by
regulation.
3. DASHR/CHCO and OER complete Office of Personnel Management (OPM) data
calls in accordance with OPM's applicable instructions and guidance to ensure all
Treasury Office of Inspector General Semiannual Report—September 2022 29
Statistical Summary
required employees, such as those who have left Treasury, are properly reported.
4. DASHR/CHCO finalizes and approves Treasury's SES Pay and Awards policy, and
then periodically reviews it for continued relevance, effectiveness, and
transparency in making pay decisions and awarding bonuses, assesses staffing
levels, workforce skills, and respective budgets to determine whether additional
personnel should and can plausibly be incorporated into future strategic planning to
ensure OER can meet its goals and mission.
5. DASHR/CHCO finalizes and approves Treasury's SES Pay and Awards policy, and
then periodically reviews it for continued relevance, effectiveness, and
transparency in making pay decisions and awarding bonuses.
6. OER documents the processes and SOP, with appropriate detail, followed in
administering Treasury DO SES member performance ratings, pay adjustments, and
bonuses.
7. OER oversees the process regarding exceptions to the 12-month rule.
8. OER includes information regarding the approval process for waiver requests for
exceptions to the 12-month rule in the instructions provided to bureau heads and
DO policy offices. This information should be consistent with Federal regulations
and Treasury's SES Pay and Awards policy.
9. OER submits Treasury's respective data call report to OPM by the due dates
established by 5 CFR 534.405, Performance awards, and before any established
deadlines per OPM's annual data call memorandum. Management agreed with the
recommendations.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-029 GULF COAST RESTORATION: Jefferson Parish's 03/20
Internal Control over Federal Awards
1. & 2. The Fiscal Assistant Secretary should ensure that deficiencies identified in
Jefferson Parish, Louisiana's controls over Federal awards are considered as part
of the Treasury's oversight of future awards as well as risk assessments of
Jefferson Parish as required by the Uniform Administrative Requirements, Cost
Principals, and Audit Requirements for Federal Awards (2 CFR Part 200). This
recommendation is counted as two recommendations because it applies to both
findings in the report. Management agreed with the recommendations.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-030 BILL AND COIN MANUFACTURING: The United 03/20
States Mint Numismatic Order Management
System is Meeting User Needs But Improvements
to Oversight are Needed
1. The Mint Director ensures the Numismatic and Bullion Directorate retains evidence
of its monitoring activities outlined in the contract's Quality Assurance Surveillance
Treasury Office of Inspector General Semiannual Report—September 2022 30
Statistical Summary
Plan to better document the Mint's oversight of the contractor's compliance with
contract requirements. Management agreed with the recommendation.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-036 Interim Audit Update – Coronavirus Relief Fund 05/20
Recipient Reporting
1. Treasury management should support our office in accomplishing our monitoring
and oversight responsibilities in the following ways: (1) assist in communications
with Coronavirus Relief Fund recipients on matters that include, but are not limited
to, communications of reporting and record-keeping requirements and other audit
inquiries, as needed; (2) ensure that Treasury maintains communication channels
with recipients to obtain and address post payment inquiries regarding specific
payments; and (3) continue to update Coronavirus Relief Fund guidance and
disseminate to recipients as needed. Management agreed with the
recommendation.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-040 BILL AND COIN MANUFACTURING: Audit of 06/20
Bureau of Engraving and Printing’s Implementation
of Security Features and Meaningful Access for
the Blind and Visually Impaired into New Note
Design
1. The Director of BEP in collaboration, as necessary, with members of the United
States Currency Program:
Ensure the Advanced Counterfeit Deterrence Steering Committee charter is
updated in a timely manner, and as needed, to ensure roles, responsibilities, and
current practices, such as the attendance of Advanced Counterfeit Deterrence
Steering Committee monthly meetings by appropriate personnel, are clearly defined
and communicated to its members. Management agreed with the recommendation.
Fiscal Report Number Report Title Date
Year Issued
2020 OIG-20-042 MANUFACTURING AND REVENUE: Mint Controls 08/20
Over Raw Materials and Coin Exchange Programs
Need Improvement
1. The Mint Director should conduct regular reviews of the suppliers’ quality systems
to ensure that the suppliers are acting in the best interest of the Mint. This includes
regular site visits or periodic reviews of the suppliers’ quality system
documentation.
Treasury Office of Inspector General Semiannual Report—September 2022 31
Statistical Summary
2. Consider sampling and testing the material after blanking in order to assess the
material quality throughout the coil.
3. Verify incoming raw material weights to ensure that the Mint is receiving the raw
materials paid for.
4. Strengthen and finalize SOPs for all coin exchange programs before accepting any
redemptions. This would include using tests and subject matter experts to
authenticate the genuineness of coins redeemed, as well as working with the Board
to develop appropriate interagency procedures to assure the integrity of the coin
redemption process for uncurrent coins.
5. Follow all SOPs, including but not limited to, procedures related to sampling,
inspecting, and testing coins, and appropriately document redemptions.
Additionally, ensure that adequate background investigations are conducted on bulk
redeemers and decisions to allow participation into the Mutilated Coin Redemption
Program are based on relevant data from the background investigation. The Mint
should add criteria, such as obtaining financial statements for analyses of the
potential bulk redeemers and performing site visits at their premises, as part of the
background investigation process for entry into the program. The Mint should
document how this criteria was met, and if these steps were not performed, the
reasons why.
6. Ensure that all coins returned to the Mint and removed from circulation are
destroyed timely and sufficiently accounted for. Management agreed with the
recommendations.
Fiscal Report Number Report Title Date Issued
Year
2021 OIG-21-010 INFORMATION TECHNOLOGY: 11/20
Department of the Treasury Federal
Information Security Modernization Act
Fiscal Year 2020 Performance Audit for
Collateral National Security Systems
(Sensitive But Unclassified)
1-9. This recommendation is Sensitive But Unclassified. Management agreed with the
recommendations.
Fiscal Report Number Report Title Date Issued
Year
2021 OIG-21-013 FINANCIAL MANAGEMENT: Audit of 12/20
the Office of D.C. Pensions' Financial
Statements for Fiscal Years 2020 and
2019
1. Office of D.C. Pensions management should fully develop existing policies and
procedures to document a process for reviewing, investigating, and resolving
Treasury Office of Inspector General Semiannual Report—September 2022 32
Statistical Summary
unusual or suspicious activity identified during the audit log review, as well as
maintaining evidence of such review, investigation, and resolution. Management
agreed with the recommendation.
Treasury Office of Inspector General Semiannual Report—September 2022 33
Statistical Summary
Fiscal Report Number Report Title Date Issued
Year
2021 OIG-21-021 FINANCIAL MANAGEMENT: 02/21
Management Report for the Audit of the
Department of the Treasury's
Consolidated Financial Statements for
Fiscal Years 2020 and 2019
1. Fiscal Service management should complete its periodic review of the PIR user
access within the annual timeframe in accordance with the PIR System Security
Plan (SSP).
2. Address resource constraints and prioritize efforts to perform reviews within the
annual timeframe in accordance with the PIR SSP.
3. Retain evidence to demonstrate PIR auditable events are reviewed timely in
accordance to policy and procedures.
4. Consider resource constraints and prioritize efforts to perform timely audit logging
reviews in accordance with policy and procedures.
5. Review the current population of JFICS accounts and disable application user
access that has been inactive for greater than 120 days.
6. Design and implement a control to automatically disable the JFICS application user
accounts after 120 days of inactivity.
7. Retain evidence to demonstrate that access is disabled in a timely manner in
accordance with the JFICS SSP.
8. Perform a review of the current system environment against the Configuration
Management Database to ensure that all information system components are
inventoried.
9. Perform a risk assessment over the subject matter and determine the appropriate
personnel to be responsible for monitoring and updating the Configuration
Management Database.
10. Update policy and procedures related to the above recommendations and
disseminate the documentation to enforce such policy and procedures.
11. Conduct a review of the UNIX Mid-Tier production servers to validate that backups
are scheduled for all servers based on the frequency defined in the Enterprise
Information Technology Infrastructure SSP for the full fiscal year.
12. Perform a risk assessment over the subject matter and determine the appropriate
personnel to be responsible for developing a Plan of Action & Milestones or formal
risk acceptance for vulnerabilities identified.
Treasury Office of Inspector General Semiannual Report—September 2022 34
Statistical Summary
13. Disseminate policy and procedures related to the use of a Plan of Action &
Milestones or formal risk acceptance to the appropriate personnel determined above
to enforce the respective vulnerability management requirements. Management
agreed with the recommendations.
Fiscal Report Number Report Title Date Issued
Year
2021 OIG-21-025 Interim Audit Update - Air Carrier and 03/21
Contractor Certifications for Payroll
Support Program
1. As expeditiously as possible, Treasury management should review payments issued
under Payroll Support Program 1 to ensure awarded amounts are allowable per the
Coronavirus Aid, Relief, and Economic Security Act and Treasury guidance.
2. As expeditiously as possible, Treasury management should remedy the incorrect
amounts awarded under Payroll Support Program 1. Management agreed with the
recommendations.
Fiscal Report Number Report Title Date Issued
Year
2021 OIG-21-026 BILL AND COIN MANUFACTURING: 04/21
Audit of Physical Security at U.S. Mint
Production Facilities (Sensitive But
Unclassified)
1-4. This recommendation is Sensitive But Unclassified. Management agreed with the
recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2021 OIG-21-028 FINANCIAL MANAGEMENT: Audit of 05/21
Treasury's Compliance With the PIIA
Requirements for Fiscal Year 2020
1. Treasury's Risk and Control Group (RCG) should work with Fiscal Service
management to revise its controls over the review and approval process to verify
the quantitative risk assessment includes sufficient supporting documentation to
substantiate Fiscal Service's improper payment amount derived from its non-
statistical sampling methodology.
2. Treasury’s RCG should Work with Fiscal Service and Mint management to provide
evidence of sufficient review and approval on the program-specific risk
assessments indicating management responses to risk assessment questions are
complete and accurate. Management agreed with the recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-004 INFORMATION TECHNOLOGY: 10/21
Department of the Treasury Federal
Information Security Modernization Act
Treasury Office of Inspector General Semiannual Report—September 2022 35
Statistical Summary
Fiscal Year 2021 Performance Audit for
Collateral National Security Systems
(Sensitive But Unclassified)
1-7. This recommendation is Sensitive But Unclassified. Management agreed with the
recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-005 CYBERSECURITY/INFORMATION 10/21
TECHNOLOGY: Department of the
Treasury Federal Information Security
Modernization Act Fiscal Year 2021
Performance Audit (Sensitive But
Unclassified)
1-7. This recommendation is Sensitive But Unclassified. Management agreed with the
recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-008 DATA ACT: Treasury Submitted Higher 11/21
Quality Non-IRS Data in its Fiscal Year
2020 Third Quarter DATA Act
Submission, However Improvements are
Still Needed
1. Treasury continue working with the Treasury Executive Office for Asset Forfeiture
to ensure proper submission of Equitable Sharing financial assistance awards on
USAspending.gov.
2. Treasury perform an analysis of the issues encountered in recording Coronavirus
Aid, Relief, and Economic Security Act financial assistance awards and develop
lessons learned based on this analysis.
3. Treasury develop procedures and perform training to ensure personnel are better
prepared for future emergency funding events and Treasury's increased role as a
grant-making agency. Management agreed with the recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-012 FINANCIAL MANAGEMENT: Audit of the 11/21
Department of the Treasury's
Consolidated Financial Statements for
Fiscal Years 2021 and 2020
1. The Acting Assistant Secretary for Management and Acting Chief Financial Officer
should ensure that Fiscal Service implements requisite corrective actions to resolve
control deficiencies over its cash management and debt information systems.
Separate reports with additional details and recommendations for corrective action
were provided to Fiscal Service management.
Treasury Office of Inspector General Semiannual Report—September 2022 36
Statistical Summary
2. Ensure that the Internal Revenue Service (IRS) implements corrective actions to
resolve the control deficiencies at IRS. A separate report was provided to IRS
management detailing the conditions identified and recommendations to address
the significant deficiency.
3. Ensure that the IRS and the Fiscal Service develop and implement remediation plans
outlining actions to be taken to resolve noncompliance with the federal financial
management system requirements and the resources and responsible organizational
units for such planned actions. Separate reporting with recommendations was
provided to IRS and Fiscal Service management to address the noncompliance with
the federal financial management system requirements. Management agreed with
the recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-014 FINANCIAL MANAGEMENT: 12/21
Management Letter for the Audit of the
Department of the Treasury's
Consolidated Financial Statements for
Fiscal Years 2021 and 2020
1. DO management should establish a timeframe requirement for removing or disabling
system (e.g., FARS) access of terminated employees and contractors that is from
the user's effective termination date. This established timeframe requirement
should be included in the DO Information Technology Security Policy Handbook
(DO-910) policy.
2. DO management should develop, document, and implement procedures that
enforce the timeframe for removing or disabling system (e.g., FARS) access of
terminated users. This may include timely notification from DO management to
system (e.g., FARS) management of user's termination dates.
3. DO management should implement monitoring policies and procedures to ensure
the Administrative Resource Center performs the Core Trial Balance to Treasury
Information Executive Repository reconciliation timely and in accordance with the
current Departmental Accounting Policy.
4. To assist management in mitigating the risk of potential inaccurate reporting and
noncompliance with public laws, management should complete a full review of all
Treasury Account Symbols, compare all attributes to the Federal Account Symbols
and Titles book, and create policies and procedures to adequately document the
review of new Treasury Account Symbols. Management agreed with the
recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-015 FINANCIAL MANAGEMENT: Audit of the 12/21
Office of D.C Pensions' Financial
Treasury Office of Inspector General Semiannual Report—September 2022 37
Statistical Summary
Statements for Fiscal Years 2021 and
2020
1. Office of D.C. Pensions management enhance existing policies and procedures to
document a process for reviewing, investigating, and resolving unusual or
suspicious activity identified during the audit log review, as well as maintaining
evidence of such review, investigation and resolution. Management agreed with the
recommendation.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-017 FINANCIAL MANAGEMENT: 12/21
Management Letter for the Audit of the
United States Mint's Financial
Statements for Fiscal Years 2021 and
2020
1. Mint management should enforce termination and transfer procedures to remove
system access of terminated or transferred employees and contractors in a timely
manner from the network.
2. Mint management should implement controls to ensure that expenses and related
accruals are appropriately accounted for and reported in the Mint's financial
statements in accordance with U.S. Generally Accepted Accounting Principles.
Management agreed with the recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-027 DOMESTIC ASSISTANCE: Audit of 02/22
Wisconsin Housing and Economic
Development Authority New Markets Tax
Credit Allocations
1. The Director of the Community Development Financial Institutions (CDFI) Fund
should include as part of Allocation Agreement(s) a requirement that Community
Development Entities establish and adhere to written policies and procedures
governing the selection of entities for New Markets Tax Credit program
investments or loans.
2. The Director of the CDFI Fund should update the memorandum of understanding
with the IRS to include compliance monitoring of the New Markets Tax Credit
program with current processes and systems and language permitting CDFI Fund
requests of specific Treas. Reg. §1.45D-1 compliance reviews by the IRS.
Management agreed with the recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-028 CORONAVIRUS DISEASE 2019 03/22
PANDEMIC RELIEF PROGRAMS: Audit of
Treasury Office of Inspector General Semiannual Report—September 2022 38
Statistical Summary
Treasury's Implementation of the
Emergency Capital Investment Program
1. The Deputy Assistant Secretary should ensure the Interim Director of the
Emergency Capital Investment Program finalizes policies and procedures and key
documentation to govern full program implementation and ongoing administration
of Emergency Capital Investment Program investments, as well as effective internal
control over the program. Management agreed with the recommendation.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-031 RESOURCE MANAGEMENT: Audit of the 03/22
Department of the Treasury's Use of
Cash Discounts ($66,686 Funds Put to
Better Use)
1. The Director of the Financial Crimes Enforcement Network (FinCEN) ensures that
FinCEN develops, revises, and/or finalizes SOPs for taking cash discounts to ensure
the process is adequately revised and documented to take full advantage of cash
discounts when offered, and when applicable, as required by Section 2060 of the
Treasury Financial Manual (TFM). ($41,426, Funds Put to Better Use)
2. The Director of FinCEN ensures that FinCEN maintains adequate controls on internal
processes related to payment approvals.
3. The Director of FinCEN ensures that FinCEN ensures that Contracting Officer
Representatives (COR) approve invoices with discounts timely.
4. The Director of FinCEN ensures that FinCEN participates in required training, as
necessary.
5. The Director of FinCEN ensures that FinCEN distributes SOPs and/guidance relating
to cash discounts to FinCEN's management, staff, Contracting Officer's, and COR,
including provide training, as necessary.
6. The Commissioner of the Fiscal Service ensures that Fiscal Service maintains
adequate controls on internal processes related to payment approvals. ($8,274,
Funds Put to Better Use)
7. The Commissioner of the Fiscal Service ensures that Fiscal Service follows Fiscal
Service's SOP and/or guidance relating to cash discounts including, but not limited
to, COR approving invoices with discounts timely.
8. The Director of the Mint ensures that the Mint develops, revises, and/or finalizes
SOPs for taking cash discounts to ensure the process is adequately documented
and personnel are instructed to take full advantage of cash discounts when offered
and applicable, as required by Section 2060 of the TFM. ($15,849, Funds Put to
Better Use)
9. The Director of the Mint ensures that the Mint maintains adequate controls on
internal processes related to payment approvals.
Treasury Office of Inspector General Semiannual Report—September 2022 39
Statistical Summary
10. The Director of the Mint ensures that the Mint ensures that CORs approve invoices
with discounts timely.
11. The Director of the Mint ensures that the Mint encourages vendors to use the
Invoice Processing Platform when submitting their invoices for the processing of
payment of invoices with discounts to be more efficient.
12. The Director of the Mint ensures that the Mint participates in required training, as
necessary.
13. The Director of the Mint ensures that the Mint distributes SOPs and guidance
relating to cash discounts to Mint's management, staff, Contract Officer’s, and
CORs, and provides training, as necessary.
14. The Director of the Comptroller of the Currency ensures that Office of the
Comptroller of the Currency (OCC) develops, revises, and/or finalizes SOPs for
taking full advantage of cash discounts when offered and applicable, as required by
Section 2060 of the TFM. ($1,137, Funds Put to Better Use)
15. The Director of the Comptroller of the Currency ensures that OCC maintains
adequate controls on internal processes related to payment approvals.
16. The Director of the Comptroller of the Currency ensures that OCC ensures that
CORs approve invoices with discounts timely.
17. The Director of the Comptroller of the Currency ensures that OCC distributes SOPs
and/or guidance relating to cash discounts to OCC management, staff, Contract
Officers, and CORs and provide training, as necessary. Management agreed with
the recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-032 CONTRACT AUDIT: Audit of the Bureau 03/22
of Engraving & Printing's eFiling System
1. The Director of BEP should ensure BEP performs periodic internal reviews to ensure
that contract award files within the eFiling system are complete, accurate, and in
compliance with the Federal Acquisition Regulation and BEP's internal policies.
Management agreed with the recommendation.
Other Federal Agencies
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-007 GULF COAST RESTORATION - DATA 11/21
Act: Council Met DATA Act Reporting
Requirements but Improvements Are
Needed
1. The Council Executive Director should ensure that the Senior Accountable Official
(SAO) updates the Council’s “Financial Policies and Procedures Handbook” and
Treasury Office of Inspector General Semiannual Report—September 2022 40
Statistical Summary
other applicable policies and procedures to incorporate the new grant management
systems and to clarify that all obligations, including grant awards, must be
processed in Oracle within three business days. The SAO should also ensure that
Council staff is adequately trained on all updated guidance.
2. The SAO should ensure that Council staff continues to work closely with the
Administrative Resource Center to reduce timing errors for future DATA Act
submissions.
3. The SAO should ensure that Council staff documents and implements additional
procedures for Council staff to review periodic data element reports prior to the
SAO asserting to the completeness, accuracy, timeliness, and quality of Council’s
DATA Act submission.
4. The SAO should ensure that Council staff continues to improve oversight of the
Center’s future DATA Act submissions to ensure the accuracy of the Council’s
procurement data, which reaffirms our recommendation from our prior DATA Act
audit report. Management agreed with the recommendations.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-033 REVENUE COLLECTION: The U.S. 03/22
Customs and Border Protection’s
Oversight of the Merchandise
Transported In-Bond Program Needs
Improvement to Better Ensure the
Protection of Revenue
1. Ensure Cargo Security and Controls Division (CSC) officials develop and
disseminate performance measures specific to the In-Bond Program so that CSC,
field offices, and port personnel are aware of program expectations. These
measures should be used to regularly assess port performance and hold ports
accountable.
2. Ensure CSC officials develop written procedures for CSC’s oversight of port
performance relating to the In-Bond Program to include, but not be limited to,
regular data analytics and review of Automated Commercial Environment (ACE)
reports.
3. Ensure CSC officials work with Trade Transformation Office (TTO) officials to
implement a central repository to store ACE reports, compliance examination
documentation, and other in-bond related information, including training materials,
maintained by the ports so that CSC can oversee in-bond activity. Additionally,
CSC should regularly notify field offices and ports that these documents are
available in this repository
4. Ensure CSC officials expand the Self-Inspection Program in-bond Self-Inspection
Worksheet questions to cover key program areas, such as the ports’ use of ACE
reporting to oversee overdue in-bond shipments and training for U.S. Customs and
Border Protection (CBP) officers on in-bond compliance examinations and audits.
Treasury Office of Inspector General Semiannual Report—September 2022 41
Statistical Summary
5. Ensure CSC officials provide guidance to the ports on how to respond to in-bond
Self-Inspection Worksheet questions to include scenarios and the appropriate
response given those scenarios.
6. Ensure Office of Information and Technology officials assess and address each
port’s need for infrastructure and equipment upgrades to effectively operate and
meet information system requirements.
7. Ensure CSC officials issue policies and procedures for ports on ACE reports they
are expected to run regularly to oversee in-bond shipments and ensure in-bonds are
closed out. This should include guidance necessary to monitor shipments in ACE as
well as review proof of exports.
8. Ensure CSC officials issue policies and procedures for CSC to regularly review the
monitoring and tracking of in-bond shipments conducted by the ports.
9. Ensure CSC officials update in-bond regulations to require a standardized proof of
export to be uploaded to ACE for all cargo exported.
10. Ensure CSC officials provide TTO official’s business requirements after regulations
are updated so that TTO can update ACE to require proof of export for closure of
in-bonds that are exported.
11. Ensure Office of Trade officials, with input from CSC officials, update regulations to
support ACE functionality and data quality to modernize the in-bond process. This
includes improving the report processing time, improving the quality of reports, and
addressing Commercial Customs Operations Advisory Committee concerns
regarding the system.
12. Ensure CSC officials provide TTO officials with business requirements after
regulations are updated so that TTO can implement changes in ACE to modernize
in-bond tracking and automation processes and enhance data quality to meet user
needs.
13. Direct CSC officials to consider updating guidance on compliance examinations to
require ports to examine a statistically valid sample of in-bond shipments so that
cargo reviewed is more representative of all in-bond shipments. Additionally, the
guidance should contain instructions on waivers of examination including
documenting the justification for these waivers.
14. Ensure CSC officials provide the ports with written policies and procedures to
ensure compliance examinations are adequate and consistent. These procedures
should include selecting cargo for review, conducting examinations, documenting
the process used for the review and the results, and storing the records.
15. Ensure CSC officials regularly sample, and review compliance examinations
conducted by the ports to ensure ports are complying with CBP policy.
16. Ensure CSC and TTO officials formalize standardized in-bond training for
Headquarters’ offices, field offices, and ports to ensure all ports are operating under
national policy. Training should cover key areas such as compliance examinations
and audits, ACE reports, bonding requirements, and risk assessments of the trade
community.
Treasury Office of Inspector General Semiannual Report—September 2022 42
Statistical Summary
17. Ensure CSC and TTO officials require ACE training related to the oversight of in-
bond cargo for all CBP officers.
18. Ensure that CSC and TTO officials coordinate to provide regular and comprehensive
ACE training course offerings related to the oversight of in-bond cargo to satisfy
employee training needs.
19. Ensure the Commercial Operations Revenue & Entry Division coordinates with the
Revenue Division and CSC officials to improve custodial bonding to address the
risks of merchandise transported in-bond and update CBP’s bonding policy. The
policy should improve the connectivity between in-bond shipments and respective
duties, taxes, and fees by considering estimated duties when determining the
appropriate bond coverage.
20. Ensure the Commercial Operations Revenue & Entry Division provides general bond
training to include setting the appropriate bond amounts. Management agreed with
the recommendations.
Closed Investigations of Senior Government Employees Not
Publicly Disclosed
April 1, 2022, through September 30, 2022
Treasury OIG closed 8 investigations involving senior Government employees during the period
that were not publicly disclosed. Of these investigations, 4 substantiated an instance of
misconduct against a senior Government employee and 4 were unsubstantiated.
Case Number Allegation/Disposition
DO-22-0083-I On June 27, 2022, the OIG completed its report of investigation for
a case initiated upon receipt of information from the Treasury, that a
Departmental Offices (DO) employee, with dual citizenship of the
United States (U.S.) and a foreign country, who held a Secret
Clearance, was given permission to telework from the foreign
country for approximately 15 months during the pandemic. The OIG
investigation determined that the employee’s supervisor, a senior
official, approved the telework and violated Treasury policy for
allowing an employee to work in a foreign country without being a
sponsored employee or a dependent of a U.S. Government employee
assigned to the overseas location and violated U.S. Department of
State policy for failing to obtain permission from the Chief of
Mission. All executive branch employee activities overseas fall under
the authority of the Chief of Mission. The telework abroad also
Treasury Office of Inspector General Semiannual Report—September 2022 43
Statistical Summary
violated Treasury policy for failing to complete a new telework
agreement and to adjust the duty station, creating an overpayment of
salary to the employee for the period the employee worked at the
foreign location. The investigation determined the allegation was
substantiated. Treasury OIG prepared a report for DO, for their
information. This matter was not referred to the Department of
Justice.
Substantiated
DO-22-0085-I On September 13, 2022, the OIG completed its report of
investigation for a case initiated upon notification that a DO senior
official entered the Main Treasury building with a loaded firearm in
their bag. The senior official advised that they did not intentionally
bring the weapon into the building and placed the bag with the
weapon on the magnetometer conveyor belt prior to it being
detected. Criminal prosecution was presented and declined by the
U.S. Attorney’s for the District of Columbia.
Substantiated
OCC-22-0096-I On July 12, 2022, the OIG completed its report of investigation
based on receipt of an anonymous complaint alleging OCC, Senior
Deputy Comptrollers (SDC) awarded themselves bonuses and merit
pay awards in violation of government policy and regulation. The OIG
unsubstantiated the allegation based on an interview with the
employee who established the bonus and merit pay policy for the
OCC and established the max bonus amounts, in which SDCs had no
input. Additionally, the SDCs were not responsible for creating their
own performance appraisals, which were determinant in merit pay
award and bonus compensation; the Comptroller made those
determinations. This matter was not referred to the Department of
Justice.
Unsubstantiated
OFAC-20-0033-I On September 16, 2022, the OIG completed its report of
investigation for a case initiated upon receipt of information from a
foreign government. Our investigation revealed that a senior official
with the OFAC mishandled classified foreign documents and engaged
in behavior prejudicial to the U.S. Government. Our office provided
its report to OFAC and was informed the subject’s eligibility for
access to classified information and access to Sensitive
Compartmented Information were revoked and was reassigned to a
Treasury Office of Inspector General Semiannual Report—September 2022 44
Statistical Summary
moderate-risk position. This matter was not referred to the
Department of Justice.
Substantiated
USM-21-0016-I On August 18, 2022, the OIG completed its report of investigation
for a case initiated upon notification from a Mint employee that a
confidential EEO settlement agreement was disseminated to various
other Mint employees not authorized to receive the document. The
investigation determined the confidential EEO settlement agreement
was sent to multiple Mint employees from a personal email address
registered to a senior mint official without a legitimate business
purpose in violation of Disclosure of Records or Information. Treasury
OIG provided a report to the Mint for their information. Criminal
prosecution was presented and declined by the U.S. Attorney's
Office for the Eastern District of Virginia.
Substantiated
USM-22-0018-I On April 7, 2022, the OIG completed its report of investigation for a
case initiated upon receipt of information that a Mint senior official
gave Mint products to the U.S. Naval Academy (USNA) after being
informed by Mint Counsel that it was not authorized and violated
agency policy. The OIG found that the Mint had a Memorandum of
Understanding written and approved by Mint Counsel to supply the
coins to the USNA at Mint cost; therefore, there was no violation.
This matter was not referred to the Department of Justice.
Unsubstantiated
USM-22-0050-I On April 15, 2022, the OIG completed its report of investigation for
a case initiated upon receipt of information from a Mint employee
that senior officials in San Francisco installed four Tesla charging
stations at the facility, even though the Mint did not have any
electric vehicles or a policy regarding electric vehicles. The
complainant also alleged that only three employees were in the pilot
program and no other employees were asked to enroll. Our
investigation found that the Mint recently installed six charging units
and were conducting a pilot program in accordance with federal
policies and created a Memorandum of Understanding regarding the
use of the stations. The Mint will purchase electric vehicles, as
required by Fixing America’s Surface Transportations (FAST) Act and
Executive Order. Employees may participate in the program and use
the chargers for a monthly nominal fee; however, priority will be
given to government vehicles. A report was provided to the Mint, for
Treasury Office of Inspector General Semiannual Report—September 2022 45
Statistical Summary
information. This matter was not referred to the Department of
Justice.
Unsubstantiated
USM-22-0082-I On July 1, 2022, the OIG completed its report of investigation for a
case initiated upon receipt of information from the OIG Complaint
Hotline, alleging that a senior official, a Mint Police Officer’s
supervisor, knowingly approved a falsified training request for a
direct report. The senior official approved the falsified training
request; however, our investigation was unable to substantiate the
allegation due to conflicting statements between the senior official
and direct report, as well as a lack of additional evidence. Criminal
prosecution was presented and declined by the USAO for the
Southern District of New York.
Unsubstantiated
Summary of Instances of Whistleblower Retaliation
April 1, 2022, through September 30, 2022
There was one new case of possible whistleblower retaliation opened during this reporting
period.
Summary of Attempts to Interfere With Treasury OIG
Independence, Including Instances Where Information or
Assistance Request was Refused
April 1, 2022, through September 30, 2022
There were no attempts made to resist, delay, or restrict Treasury OIG access to records or
other information, and no instances where an information or assistance request was refused
during this reporting period.
Treasury Office of Inspector General Semiannual Report—September 2022 46
Statistical Summary
Listing of Audit Products Issued
April 1, 2022, through September 30, 2022
Office of Audit
Emergency Rental Assistance Government Grantee Quarterly Reporting Desk Review
Procedures (OIG-CA-22-013, 04/22/2022)
Overseas Contingency Operations – Summary of Work Performed by the Department of the
Treasury Related to Terrorist Financing and Anti-Money Laundering for Second Quarter Fiscal
Year 2022 (OIG-CA-22-015, 05/17/2022)
Annual Plan, Fiscal Year 2022, Office of Inspector General, Department of the Treasury
(OIG-CA-22-016, 05/26/2022)
FINANCIAL MANAGEMENT: Audit of the Gulf Coast Ecosystem Restoration Council's
Compliance with PIIA for Fiscal Year 2021 (OIG-22-034, 06/07/2022)
FINANCIAL MANAGEMENT: Audit of Treasury's Compliance with the PIIA Requirements for
FY 2021 (OIG-22-035, 06/27/2022)
Memorandum for the Honorable Richard K. Delmar, Treasury Deputy Inspector General: Joint
Purchase and Integrated Card Violation Report (October 1, 2021–March 31, 2022)
(OIG-CA-22-017, 07/20/2022) Internal Memorandum
INFORMATION TECHNOLOGY: The Gulf Coast Ecosystem Restoration Council Federal
Information Security Modernization Act of 2014 Evaluation Report for Fiscal Year 2022
(OIG-CA-22-018, 8/15/2022)
Overseas Contingency Operations – Summary of Work Performed by the Department of the
Treasury Related to Terrorist Financing and Anti-Money Laundering for Third Quarter Fiscal
Year 2022 (OIG-CA-22-019, 8/16/2022)
Inquiry on Use of Pandemic Relief Funds for Increased Broadband Access to Unserved
Communities (OIG-CA-22-020, 8/30/2022)
CYBERSECURITY/INFORMATION TECHNOLOGY: Fiscal Year 2020 Audit of the Department of
the Treasury’s Information Security Program and Practices for Its Intelligence Systems
(Classified) (OIG-22-036, 09/01/2022)
Treasury Office of Inspector General Semiannual Report—September 2022 47
Statistical Summary
CYBERSECURITY/INFORMATION TECHNOLOGY: Federal Information Security Modernization
Act Fiscal Year 2022 Performance Audit for the Unclassified Systems (Sensitive But
Unclassified) (OIG-22-037, 09/02/2022)
CYBERSECURITY/INFORMATION TECHNOLOGY: Department of the Treasury Federal
Information Security Modernization Act Fiscal Year 2022 Performance Audit for the Collateral
National Security Systems (Sensitive But Unclassified) (OIG-22-038, 09/02/2022)
Report on the Bureau of the Fiscal Service’s Description of its Administrative Resource Center
Shared Services System and the Suitability of the Design and Operating Effectiveness of its
Controls for the Period July 1, 2021, to June 30, 2022 (OIG-22-039, 09/16/2022)
Termination Memorandum – Audit of the Department of the Treasury's Implementation of the
State Small Business Credit Initiative Program (OIG-CA-22-021, 09/20/2022)
Termination Memorandum – Audit of the Office of Foreign Assets Control’s Iran Sanctions
Program (OIG-CA-22-022, 09/22/2022)
Audit of the Department of the Treasury's Compliance with the Geospatial Data Act of 2018
(OIG-22-040, 09/26/2022)
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier Worker
Support Certifications – XOJET Aviation, LLC (REDACTED) (OIG-22-041, 09/28/2022)
Questioned Costs $172,218
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier Worker
Support Certifications – Alpine Aviation, Inc. (REDACTED) (OIG-22-042, 09/28/2022)
Questioned Costs $165,586
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier Worker
Support Certifications – Pegasus Elite Aviation, Inc. (REDACTED) (OIG-22-043, 09/28/2022)
Questioned Costs $767,452
FINANCIAL MANAGEMENT: Report on the Enterprise Applications’ Description of its
HRConnect System and the Suitability of the Design and Operating Effectiveness of its
Controls for the Period July 1, 2021, to June 30, 2022 (OIG-22-044, 09/28/2022)
Council of Inspectors General on Financial Oversight
Council of the Inspectors General on Financial Oversight Guidance in Preparing and Managing
Crises (Redacted) (CIGFO-2022-01, 06/30/2022)
Annual Report of the Council of Inspectors General on Financial Oversight (July 29, 2022)
Treasury Office of Inspector General Semiannual Report—September 2022 48
Statistical Summary
Audit Reports Issued With Questioned Costs
April 1, 2022, through September 30, 2022
Total Total
Total No. Questioned Unsupported
Category of Reports Costs Costs
For which no management decision had been made by
the beginning of reporting period 1 $500,000 $0
Which were issued during the reporting period 3 $1,105,256 $0
Subtotals 4 $1,605,256 $0
For which a management decision was made during the
reporting period 1 $500,000 $0
Dollar value of disallowed costs 13 $500,000 $0
Dollar value of costs not disallowed 0 $0 $0
For which no management decision was made by the
end of the reporting period 3 $1,105,256 $0
For which no management decision was made within 6
months of issuance 0 $0 $0
Questioned costs include expenditures: (1) that are questioned because of an alleged violation of a provision of a
law, regulation, contract, or other requirement governing the expenditure of funds; (2) that, at the time of the
audit, are not supported by adequate documentation (i.e., unsupported costs); or (3) used for the intended
purpose that are unnecessary or unreasonable.
3
Disallowed cost of $500,000 is tracked outside of Treasury’s audit follow-up system, the Joint Audit
Management Enterprise System, for the report, Treasury OIG, Apache Tribe of Oklahoma's Use of
Coronavirus Relief Fund Payment (Redacted), OIG-CA-22-006, (December 21, 2021).
Treasury Office of Inspector General Semiannual Report—September 2022 49
Statistical Summary
Audit Reports Issued With Recommendations that Funds Be Put
to Better Use
April 1, 2022, through September 30, 2022
Total
No. of Revenue
Category Reports Total Savings Enhancement
For which no management decision had been
made by the beginning of reporting period 1 $67,448 $67,448 $0
Which were issued during the reporting
period 0 $0 $0 $0
Subtotals 1 $67,448 $67,448 $0
For which a management decision was made
during the reporting period 14 $762 $762 $0
Dollar value of recommendations agreed to
by management 0 $0 $0 $0
Dollar value based on proposed
management action 0 $0 $0 $0
Dollar value based on proposed
legislative action 0 $0 $0 $0
Dollar value of recommendations not
agreed to by management 1 $762 $762 $0
For which no management decision was
made by the end of the reporting period 1 $66,686 $66,686 $0
For which no management decision was
made within 6 months of issuance 1 $66,686 $66,686 $0
A recommendation that funds be put to better use denotes funds could be used more efficiently if management took
actions to implement and complete the recommendation including: (1) reduction in outlays; (2) de-obligations of
funds from programs or operations; (3) costs not incurred by implementing recommended improvements related to
operations; (4) avoidance of unnecessary expenditures noted in pre-award review of contract or grant agreements;
(5) any other savings which are specifically identified; or (6) enhancements to revenues of the Federal Government.
4
There was a management decision on 1of 5 recommendations with funds put to better use, for
report, Treasury OIG, RESOURCE MANAGEMENT: Audit of the Department of the Treasury’s Use of
Cash Discounts, OIG-22-031 (March 23, 2022).
Treasury Office of Inspector General Semiannual Report—September 2022 50
Statistical Summary
Reports for Which No Management Comment was Returned
Within 60 Days
As of September 30, 2022
There were no such reports issued for comment over 60 days as of the end of the reporting
period.
Reports Issued Over 6 Months for Which No Management
Decision Has Been Made
As of September 30, 2022
As of the end of this semiannual reporting period, Treasury management had not decided on
four recommendations with funds put to better use, totaling $66,686, on the report,
RESOURCE MANAGEMENT: Audit of the Department of the Treasury’s Use of Cash Discounts
(OIG-22-031, 3/23/2022).
Significant Revised Management Decisions
April 1, 2022, through September 30, 2022
There were no significant revised management decisions during the reporting period.
Significant Disagreed Management Decisions
April 1, 2022, through September 30, 2022
There were no significant disagreed management decisions during the reporting period.
Treasury Office of Inspector General Semiannual Report—September 2022 51
Statistical Summary
Peer Reviews
April 1, 2022, through September 30, 2022
Office of Audit
Audit organizations that perform audits and attestation engagements of Federal Government
programs and operations are required by generally accepted government auditing standards to
undergo an external peer review every 3 years. The objectives of an external peer review are
to determine, during the period under review, whether the audit organization was complying
with its quality control system to provide the audit organization with reasonable assurance
that it was conforming to applicable professional standards. Federal audit organizations can
receive a peer review rating of Pass, Pass with Deficiencies, or Fail.
The most recent peer review of our office was performed by the U.S. Department of Health
and Human Services (HHS) OIG. In its report dated September 27, 2021, HHS OIG rendered a
Pass rating for our system of quality control in effect for the year ended March 31, 2021.
External audit peer review reports of our office are available on Treasury OIG’s website.
Treasury OIG did not perform any peer reviews of other Federal audit organizations during this
reporting period.
Office of Investigations
The Council of the Inspectors General on Integrity and Efficiency mandates that the
investigative law enforcement operations of all OIGs undergo peer reviews every 3 years to
ensure compliance with (1) the Council of the Inspectors General on Integrity and Efficiency’s
investigations quality standards and (2) the relevant guidelines established by the Office of the
Attorney General of the United States.
In its report dated January 5, 2021, the Federal Housing Finance Agency OIG found our office
to be in compliance with all relevant guidelines for fiscal year 2020. During this reporting
period, our office did not perform a peer review of another OIG.
Treasury Office of Inspector General Semiannual Report—September 2022 52
Other Reporting Requirements and Requests
This section addresses certain reporting requirements of our office that are separate from the
reporting requirements in the Inspector General Act of 1978 (as amended).
Reviews of Bank Failures with Nonmaterial Losses
We conduct reviews of failed banks supervised by the Office of the Comptroller of the
Currency with losses to the Federal Deposit Insurance Corporation’s Deposit Insurance
Fund that do not meet the definition of a material loss in the Federal Deposit Insurance
Act. The reviews are performed to fulfill the requirements found in
12 U.S.C. §1831o(k). The term “material loss” triggers a material loss review if a loss
to the Deposit Insurance Fund exceeds $50 million (with provisions to increase that
trigger to a loss that exceeds $75 million under certain circumstances). For losses that
are not material, the Federal Deposit Insurance Act requires that each 6-month period,
the Office of Inspector General (OIG) of the Federal banking agency must (1) identify
the estimated losses that have been incurred by the Deposit Insurance Fund during that
6-month period and (2) determine the grounds identified by the failed institution’s
regulator for appointing the Federal Deposit Insurance Corporation as receiver, and
whether any unusual circumstances exist that might warrant an in-depth review of the
loss. For each 6-month period, we are also required to prepare a report to the failed
institutions’ regulator and the Congress that identifies (1) any loss that warrants an in-
depth review, together with the reasons why such a review is warranted and when the
review will be completed; and (2) any losses where we determine no in-depth review is
warranted, together with an explanation of how we came to that determination.
During this reporting period, there were no banks supervised by the Office of the
Comptroller of the Currency that failed.
Overseas Contingency Operations Quarterly Summary Memoranda to
the Department of Defense OIG
During this reporting period, we issued two summary memoranda to the Department of
Defense Office of Inspector General regarding information we obtained on the
Department of the Treasury’s activities with respect to disrupting the Islamic State of
Iraq and Syria’s finances. The memoranda included specific examples of activities to
disrupt the Islamic State of Iraq and Syria’s financing and information on the
Department of the Treasury programs that combat terrorist financing. (OIG-CA-22-015,
OIG-CA-22-019)
Treasury Office of Inspector General Semiannual Report—September 2022 53
References to the Inspector General Act
Section Requirement Page
Section 4(a)(2) Review of legislation and regulations 21
Section 5(a)(1) Significant problems, abuses, and deficiencies 7-19
Section 5(a)(2) Recommendations with respect to significant problems, abuses, and 7-19
deficiencies
Section 5(a)(3) Significant unimplemented recommendations described in previous 22-43
semiannual reports
Section 5(a)(4) Matters referred to prosecutive authorities 21
Section 5(a)(5) Summary of instances where information was refused 46
Section 5(a)(6) List of audit reports 47-48
Section 5(a)(7) Summary of significant reports 7-19
Section 5(a)(8) Audit reports with questioned costs 49
Section 5(a)(9) Recommendations that funds be put to better use 51
Section 5(a)(10)(A) Summary of each audit, inspection, and evaluation report issued before the 22-43
beginning of the reporting period for which no management decision was
made
Section 5(a)(10)(B) Summary of each audit, inspection, and evaluation report issued for which 51
no management comment was returned within 60 days
Section 5(a)(10)(C) Summary of each audit, inspection, and evaluation report issued before the 51
beginning of the reporting period for which there are outstanding
unimplemented recommendations, including the aggregate potential cost
savings
Section 5(a)(11) Significant revised management decisions made during the reporting period 51
Section 5(a)(12) Management decisions with which the Inspector General is in disagreement 51
Section 5(a)(13) Instances of unresolved Federal Financial Management Improvement Act 14
noncompliance
Section 5(a)(14) Results of peer reviews conducted of Treasury OIG by another OIG 52
Section 5(a)(15) List of outstanding recommendations from peer reviews 52
Section 5(a)(16) List of peer reviews conducted by Treasury OIG, including a list of 52
outstanding recommendations from those peer reviews
Section 5(a)(17) (A-D) Statistics for the period related to the number of (A) investigative reports 21
issued, (B) persons referred to the Department of Justice for criminal
prosecution, (C) persons referred to state and local authorities for criminal
prosecution, and (D) criminal indictments/informations
Section 5(a)(18) Description of metrics used to develop investigative statistics in Section 21
5(a)(17)
Section 5a (19) Summary of each investigation involving a senior Government employee 43-46
where allegations of misconduct were substantiated
Section 5a (20) Instances of whistleblower retaliation 46
Section 5a(21) Summary of attempts to interfere with Treasury OIG independence 46
Section 5a(22)(A) Description of each inspection, evaluation, and audit that was closed and 47-48
not publicly disclosed
Section 5a(22)(B) Description of each investigation closed, involving a senior Government 43-46
employee, that was not publicly disclosed
Section 5(d) Serious or flagrant problems, abuses, or deficiencies N/A
Section 6(b)(2) Report to Secretary when information or assistance is unreasonably refused 46
Treasury Office of Inspector General Semiannual Report—September 2022 54
Abbreviations
ACE Automated Commercial Environment
ARP American Rescue Plan Act of 2021
AVA American Viticultural Areas
BEP Bureau of Engraving and Printing
Board Board of Governors of the Federal Reserve System
CARES Act Coronavirus Aid, Relief, and Economic Security Act
CBP U.S. Customs and Border Protection
CDFI Community Development Financial Intuitions
CERTS Coronavirus Economic Relief for Transportation Services
CIGFO Council of Inspectors General on Financial Oversight
CIGIE Council of the Inspectors General on Integrity and Efficiency
Council Gulf Coast Ecosystem Restoration Council
CPA Certified Public Accountant
CRF Coronavirus Relief Fund
CSC Cargo Security and Controls Division
DASHR/CHCO Office of the Deputy Assistant Secretary for Human Resources
and Chief Human Capital Officer
DATA Act Digital Accountability and Transparency Act
DO Departmental Offices
ERA Emergency Rental Assistance
FBI Federal Bureau of Investigation
FinCEN Financial Crimes Enforcement Network
Fiscal Service Bureau of the Fiscal Service
FISMA Federal Information Security Modernization Act of 2014
FSOC Financial Stability Oversight Council
GAO Government Accountability Office
GDOR Georgia Department of Revenue
IRS Internal Revenue Service
JFICS Judgment Fund Internet Claim System
KPMG KPMG LLP
Mint United States Mint
OCC Office of the Comptroller of the Currency
OER Office of Executive Resources
OFAC Office of Foreign Assets Control
OIG Office of Inspector General
OMB Office of Management and Budget
OPM Office of Personnel Management
PIIA Payment Integrity Information Act of 2019
PIR Payment Information Repository
PRAC Pandemic Response Accountability Committee
PSP1 Payroll Support Program
PSP2 Support Program Extension
Treasury Office of Inspector General Semiannual Report—September 2022 55
Abbreviations
PSP3 Payroll Support Program 3
RCG Risk and Control Group
RESTORE Act Resources and Ecosystems Sustainability, Tourist Opportunities,
and Revived Economies of the Gulf Coast States Act of 2012
RMA RMA Associates, LLC
SAO Senior Accountable Official
SBLF Small Business Lending Fund
SDC Senior Deputy Comptrollers
SES Senior Executive Service
SPS Security Payment System
SOP standard operating procedures
S&R Saggar & Rosenberg, P.C.
SSP System Security Plan
STIG Security Technical Implementation Guide
TFM Treasury Financial Manual
TIGTA Treasury Inspector General for Tax Administration
Treasury Department of the Treasury
TTB Alcohol and Tobacco Tax and Trade Bureau
TTO Trade Transformation Office
USAO U.S. Attorney’s Office
Treasury Office of Inspector General Semiannual Report—September 2022 56
Stairway Ironwork in the Treasury Building, Washington, DC
Source: Treasury Graphics Branch
Treasury Office of Inspector General Locations
1500 Pennsylvania Avenue, N.W., Room 4436
Washington, DC 20220
875 15th Street, N.W., Suite 200
Washington, DC 20005
Report Waste, Fraud, and Abuse
Submit a complaint regarding Treasury OIG Treasury Programs and Operations and Gulf Coast Restoration using our
online form: https://oig.treasury.gov/report-fraud-waste-and-abuse
Treasury Whistleblower Ombudsman
For information about whistleblowing and reprisal and about your rights and responsibilities as a Treasury employee or
contractor, please contact the OIG Whistleblower Ombudsman Program at 202-927-0650 or Email:
OIGCounsel@oig.treas.gov
Treasury OIG Website
Access Treasury OIG reports and other information online: https://oig.treasury.gov/
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