OIG-CA-26-031: Semiannual Report to Congress, October 1, 2025 – March 31, 2026 (Department of the Treasury)
Summary
The Treasury Office of Inspector General Semiannual Report to Congress for October 1, 2025 through March 31, 2026 (OIG-CA-26-031), listing $50,794,152 in total OIG monetary benefits identified. Deputy Inspector General Loren J. Sciurba's message describes a multi-agency investigation that led to the conviction and sentencing of key participants involved in orchestrating more than $11 million in fraudulent loans. The report lists three Air Carrier Worker Support audit reports identifying $10,799 in questioned costs and 14 Final Determination on Corrective Actions letters to Coronavirus Relief Fund recipients. It also describes an audit of FinCEN's management of BSA data that issued 14 recommendations, and states that Treasury OIG had 154 full-time staff as of March 31, 2026.
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“OIG-CA-26-031: Semiannual Report to Congress, October 1, 2025 – March 31, 2026 (Department of the Treasury).”
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Department of the Treasury
Office of Inspector General
SEMIANNUAL
REPORT TO CONGRESS
October 1, 2025 – March 31, 2026
OIG-CA-26-031
This Page Intentionally Left Blank
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Treasury Office of Inspector General Semiannual Report—March 2026
Highlights
Total OIG Monetary Benefits Identified
$50,794,152
Audit Reports &
Investigative Reports Issued
Other Products
62 52
OI Indictments &
Audit Questioned Costs
Convictions
$31,629 60
Voluntary Repayments Criminal Fines / Restitution /
$93,395 Court Fees
$50,669,128
Page | iii
Message from the Inspector General
During this reporting period, the Department of the Treasury (Treasury) Office of
Inspector General (OIG) continued to advance its mission to promote integrity,
accountability, and efficiency across Treasury programs and operations. Our teams
remained focused on addressing fraud risks, strengthening oversight frameworks, and
responding to emerging threats within the financial and digital ecosystems.
As we draw down oversight of pandemic-related programs, including investigations into
misuse of Paycheck Protection Program funds, this period included a significant
achievement: a successful multi-agency investigation that uncovered a large-scale
Payment Protection Program fraud scheme resulting in substantial financial losses to the
Federal Government. The investigation led to the conviction and sentencing of key
participants involved in orchestrating more than $11 million in fraudulent loans. This
outcome reflects Treasury OIG’s commitment to working closely with law enforcement
partners to ensure accountability for abuse of taxpayer-funded pandemic relief.
Our investigative work also supported the Department of Justice (DOJ) in another
complex Coronavirus Disease 2019 fraud prosecution involving a Maryland individual
who pleaded guilty to lottery fraud scheme charges tied to pandemic-era financial
scams. This case underscores the persistent ingenuity of fraud actors seeking to exploit
federal relief programs, as well as the importance of our continued vigilance in detecting
and preventing such schemes.
Our audit work this period included a review of Treasury’s Financial Crimes Enforcement
Network (FinCEN) and its management of Bank Secrecy Act (BSA) data access. OIG
issued 14 recommendations focused on improving risk-based assessments, updating
standard operating procedures and documentation standards, ensuring the BSA system
of records notice is accurate and compliant, executing and updating required
Memorandum of Understandings (MOU), and enhancing controls for monitoring and
maintaining these agreements. FinCEN concurred with all recommendations and
outlined planned corrective actions to address the deficiencies identified.
Across all mission areas, Treasury OIG employees demonstrated exceptional
professionalism and adaptability. As new technologies, fraud patterns, and policy
priorities emerge, our teams remain committed to producing timely audits, rigorous
investigations, and data-driven reviews that support transparency and protect the public
trust.
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Treasury Office of Inspector General Semiannual Report—March 2026
Message from the Inspector General
I am proud of the quality and impact of the oversight work accomplished during this
period. Treasury OIG will continue to ensure that federal resources are safeguarded,
critical programs operate effectively, and Treasury remains resilient in the face of
longstanding and emerging risks.
Loren J. Sciurba
Deputy Inspector General
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Treasury Office of Inspector General Semiannual Report—March 2026
Contents
Highlights .......................................................................................................... iii
Message from the Inspector General .............................................................. iv
Contents ............................................................................................................ vi
Treasury Office of Inspector General Overview ............................................... 1
Management and Performance Challenges ..................................................... 3
Office of Audit – Significant Audits and Other Products ................................. 4
CARES Act Compliance Monitoring ................................................................................................ 4
Emergency Rental Assistance Oversight......................................................................................... 5
Anti-Money Laundering/Terrorist Financing and Intelligence ....................................................... 6
Financial Management..................................................................................................................... 6
Office of Investigations – Significant Investigations ..................................... 10
CARES Act Investigations .............................................................................................................. 10
Other Significant Investigations .................................................................................................... 11
Treasury OIG Accomplishments and Activities .............................................. 14
Treasury OIG Leadership Roles ....................................................................... 14
Statistical Summary ........................................................................................ 15
Other Reporting Requirements and Requests ............................................... 28
Listing of Audit Products Issued ..................................................................... 30
References to the Inspector General Act ........................................................ 35
Abbreviations ................................................................................................... 36
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Treasury Office of Inspector General Semiannual Report—March 2026
Treasury Office of Inspector General Overview
Treasury OIG was established pursuant to the 1988 amendments to the Inspector General
Act of 1978.1 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 (IRS), 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 and the
Government Accountability Office perform oversight related to the IRS. The Government
Accountability Office 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).2 In addition, 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 (Science Program) administered by the National Oceanic and Atmospheric
Administration (NOAA). With regard to the Council and the Science Program, Treasury
OIG keeps the appointed Chairperson of the Council, the NOAA 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 to detect and prevent fraud, waste, and abuse in programs and
operations within Treasury OIG’s jurisdictional boundaries. Reporting to the Assistant
Inspector General for Audit are Deputy Assistant Inspectors General responsible for
managing a diverse range of audit activities. These activities include financial sector
audits, fiscal management and transparency audits, cybersecurity, and financial
1
5 U.S.C. §§401-424
2
Public Law 112-141
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Treasury Office of Inspector General Semiannual Report—March 2026
Treasury Office of Inspector General Overview
assistance audits. Areas of responsibility span banking supervision, revenue collection
activities, financial statements, anti-money laundering and sanctions programs,
intelligence operations, information systems, and domestic assistance programs.
The Office of Investigations, under the leadership of the Assistant Inspector General for
Investigations, performs investigations and conducts initiatives to detect and prevent
fraud, waste, and abuse in programs and operations within Treasury OIG’s jurisdictional
boundaries; and to investigate 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 Hotline 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 Giglio3
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.
For Fiscal Year (FY) 2026, Treasury OIG received $48.4 million in direct appropriations. Of
this amount, up to $2.8 million is designated for audits and investigations under the
RESTORE Act. As of March 31, 2026, Treasury OIG had 154 full-time staff.
3
Giglio information refers to material that may call into question the character or testimony of a
prosecution witness in a criminal trial.
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Treasury Office of Inspector General Semiannual Report—March 2026
Management and Performance Challenges
The Reports Consolidation Act of 2000 requires Treasury OIG to annually provide its
perspective on the most serious management and performance challenges facing
Treasury and the Council. The following is a synopsis of our annual assessments, which
are available in their entirety on the Treasury OIG website.
Treasury
In a December 4, 2025, memorandum to Secretary of the Treasury, Scott Bessent,
Deputy Inspector General Loren J. Sciurba reported the following five challenges
facing the Department, of which two were new:
• Resource Optimization (New)
• Cyber Threats (Repeat)
• Artificial Intelligence Adoption (New)
• Anti-Money Laundering/Terrorist Financing and Bank Secrecy Act Enforcement
(Repeat)
• Crypto and Digital Assets Growth (Repeat)
Gulf Coast Ecosystem Restoration Council
In a November 20, 2025, letter to the Honorable David Fotouhi, Deputy
Administrator of the U.S. Environmental Protection Agency and Chairperson of the
Council, Deputy Inspector General Loren J. Sciurba reported three challenges.
• Recruiting and Retaining a Highly Skilled Workforce (Repeat)
• Federal Statutory and Regulatory Compliance (Repeat)
• Grant and Interagency Agreement Compliance Monitoring (Repeat)
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Audit – Significant Audits and Other Products
CARES Act Compliance Monitoring
Audit of Air Carrier Worker Support Certifications
Under Title IV, Subtitle B, Air Carrier Worker Support, of the Coronavirus Aid, Relief, and
Economic Security Act (CARES Act), Treasury OIG is required to audit certifications made
by passenger and cargo air carriers that do not report salaries and benefits to the
Department of Transportation and contractors. Our objective is to determine the
accuracy, completeness, and sufficiency of sworn financial statements or other data used
to certify application amounts submitted and approved by Treasury for the Payroll
Support Program. To date, we have issued three reports, identifying $10,799 in
questioned costs. Reports were issued to the following air carriers:
• Air Wisconsin Airlines, LLC – (OIG-26-024, Redacted)
• IBC Airways, Inc. – (OIG-26-025, Redacted)
• Ameriflight, LLC – (OIG-26-026, Redacted)
Follow Up Desk Reviews of Coronavirus Relief Fund Recipients Use of
Funds
The CARES Act assigned Treasury OIG with the authority to recoup funds in the event
that it is determined that a Coronavirus Relief Fund (CRF) recipient failed to comply with
requirements of subsection 601(d) of the Social Security Act, as amended, 42 U.S.C.
801(d). As part of this authority, if OIG determines that a CRF recipient failed to comply
with the use of funds requirements for CRF award funds, the amount equal to the
amount of funds used in violation shall be booked as a debt of such entity owed to the
Federal Government.
Under a contract monitored by our office, a certified independent public accounting
firm (IPA) performed desk reviews to evaluate documentation supporting the use of CRF
proceeds as reported in the GrantSolutions portal. The objective of Treasury OIG’s follow
up desk reviews was to determine if prime recipients could support the questioned costs
identified by the IPA or Treasury OIG should recoup the amounts. We issued 14 Final
Determination on Corrective Actions letters for the following prime recipients:
• City of Fresno, California (OIG-CA-26-002)
• City of Phoenix, Arizona (OIG-CA-26-003)
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Audits – Significant Audits and Other Products
• Bergen County, New Jersey (OIG-CA-26-004)
• Ohio (OIG-CA-26-007)
• Native Village of Point Hope (OIG-CA-26-008)
• New Hampshire (OIG-CA-26-009)
• City of Dallas, Texas (OIG-CA-26-010)
• Dallas County, Texas (OIG-CA-26-011)
• Nebraska (OIG-CA-26-012)
• San Bernardino County, California (OIG-CA-26-013)
• Bucks County, Pennsylvania (OIG-CA-26-015)
• Mississippi (OIG-CA-26-018)
• California (OIG-CA-26-021)
• Lancaster County, Pennsylvania (OIG-CA-26-024)
Emergency Rental Assistance Oversight
Section 501 of the Consolidated Appropriations Act, 2021 assigned our office the
responsibility to conduct monitoring and oversight of the receipt, disbursement, and use
of Emergency Rental Assistance (ERA) 1 and ERA2 funds and the authority to recoup
funds used in violation of the Consolidated Appropriations Act, 2021 and Treasury’s
guidance. The ERA1 statute, codified at 15 USC § 9058a, and the ERA2 statute, codified at
15 USC § 9058c, direct Treasury to make allocations and payments to eligible grantees
such as State and Local governments, who in-turn, make funding available in the form of
rental assistance to eligible households. As part of its oversight authority for ERA2,
Treasury OIG reports misused funds to Treasury management as questioned costs for its
action. We issued a questioned cost notice to the following grantee:
Emergency Rental Assistance Program (ERA2) – Questioned Cost
Finding, Moreno Valley, California
In August 2023, a subrecipient notified the Office of Inspector General of four
instances of potential improper payments under a grantee’s ERA2 award. After
reviewing supporting documentation from both the subrecipient and the grantee,
OIG confirmed that one of the reported cases constituted an improper payment.
Specifically, $20,850 in assistance was issued for an application lacking adequate
documentation to establish eligibility, resulting in a violation of the Use of Funds
statute. This amount was therefore questioned. In response to the draft finding, the
grantee agreed to repay the questioned amount. (OIG-CA-26-026)
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Audits – Significant Audits and Other Products
Anti-Money Laundering/Terrorist Financing and Intelligence
Audit of FinCEN’s Management of BSA Data – User Access and System of
Records Notice
During this reporting period, OIG completed its third audit examining FinCEN’s
management of BSA data. The review focused on FinCEN’s processes for granting bulk
data access, maintaining an accurate and compliant system of records notice and
establishing and managing MOUs with external agencies that use BSA data.
The audit found that FinCEN did not fully adhere to applicable laws, regulations,
standard operating procedures, or government-wide requirements in several critical
areas related to BSA data access. Specifically, FinCEN had not documented or
periodically reevaluated agencies’ need for bulk data access, nor had it updated its BSA
system of records notice to reflect current practices. In addition, the audit identified
shortcomings in FinCEN’s execution, maintenance, and tracking of required MOUs,
including for bulk data access and for agencies participating in the platform program.
Several agencies lacked executed MOUs altogether, while others had MOUs that were
outdated, inaccurately tracked, or improperly maintained.
To address these deficiencies, the OIG issued 14 recommendations aimed at
strengthening FinCEN’s oversight of BSA data. These recommendations include
conducting and documenting risk-based assessments for bulk data access; updating
standard operating procedures to clarify review responsibilities, MOU requirements, and
documentation standards; ensuring the system of records notice is accurate and
compliant with governing guidance; executing outstanding MOUs; periodically
reviewing and updating existing MOUs; and improving controls for tracking,
maintaining, and signing such agreements. FinCEN concurred with all recommendations
and described corrective actions that, if fully implemented, should bring its BSA data
management practices into compliance and enhance the integrity of its data-sharing
operations.(OIG-26-015)
Financial Management
Financial Statement Audits
The Chief Financial Officers Act of 1990, as amended by the Government Management
Reform Act of 1994, requires annual financial statement audits of Treasury. The financial
statements of certain Treasury component entities are audited either pursuant to other
requirements, their materiality to Treasury’s consolidated financial statements, or as a
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Audits – Significant Audits and Other Products
management initiative. The Chief Financial Officers Act of 1990, as amended by the
Accountability of Tax Dollars Act of 2002, also requires an annual audit of the Gulf Coast
Ecosystem Restoration Council’s (Council) financial statements. The table below shows
audit results for fiscal years 2024 and 2025.
Treasury-audited financial statements and related audits
Fiscal year 2025 audit results Fiscal year 2024 audit results
Material
weak- Significant Material Significant
Entity Opinion nesses deficiencies Opinion weaknesses deficiencies
Government Management Reform Act/Chief Financial Officers Act requirements
Department of the
Treasury U 0 1 U 0 1
Internal Revenue
Service (A) U 0 1 U 0 1
Other required audits
Bureau of Engraving
and Printing U 0 0 U 0 0
Community
Development
Financial Institutions
Fund U 0 0 U 0 0
Office of D.C. Pensions U 0 0 U 0 0
Federal Financing
Bank U 0 0 U 0 0
Treasury Forfeiture
Fund U 0 1 U 0 0
U.S. Mint
Financial
Statements U 0 0 U 0 0
Custodial Gold and
Silver Reserves U 0 0 U 0 0
Other audited accounts/financial statements that are material to Treasury’s financial statements
Bureau of the Fiscal Service
Schedule of Federal
Debt (A) U 0 0 U 0 0
Exchange Stabilization
Fund U 0 0 U 0 0
Management-initiated audits
Office of the
Comptroller of the
Currency U 0 0 U 0 0
Alcohol and Tobacco
Tax and Trade Bureau U 0 0 U 0 0
U.S. Gold Reserves
Held by Federal
Reserve Banks U 0 0 U 0 0
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Audits – Significant Audits and Other Products
Treasury-audited financial statements and related audits
Fiscal year 2025 audit results Fiscal year 2024 audit results
Material
weak- Significant Material Significant
Entity Opinion nesses deficiencies Opinion weaknesses deficiencies
Gulf Coast Financial Statements
Gulf Coast Ecosystem
Restoration Council U 0 0 U 0 0
U Unmodified opinion.
(A) Audited by the Government Accountability Office.
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 FY
2025 consolidated financial statements.
Type of
Condition noncompliance
Treasury continues to have deficiencies in IRS financial management systems. Specifically, Federal financial
IRS did not consistently design, implement, and operate information system controls and management system
security programs over its financial management systems in accordance with the federal requirements
financial management systems requirements. (first reported in FY 1997)
The status of these instances of noncompliance, including progress in implementing
remediation plans, will be evaluated as part of the audit of Treasury’s FY 2025
consolidated financial statements.
Attestation Engagements
An IPA, under contracts monitored by our office, completed three Statement of
Standards for Attestation Engagements No. 18 examinations in support of the audit of
Treasury’s FY 2025 consolidated financial statements and the financial statement audits
of certain other Federal agencies. The IPA found, in all material respects, the controls
were fairly presented in the description of controls for the system, suitably designed,
and controls tested operated effectively throughout the period examined for the
following:
• 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, 2024 to June 30, 2025
(OIG-26-001)
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Audits – Significant Audits and Other Products
• Report of the Bureau of Fiscal Service’s Federal Investment and Borrowings
Branch’s Description of its Investment and Redemption Services and the
Suitability of the Design and Operating Effectiveness of its Controls for the Period
August 1, 2024 to July 31, 2025 (OIG-26-005)
• Report of the Bureau of Fiscal Service’s Funds Management Branch’s Description
of its Trust Funds Management Services and the Suitability of the Design and
Operating Effectiveness of its Controls for the Period August 1, 2024 to July 31,
2025 (OIG-26-006)
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Investigations – Significant Investigations
CARES Act Investigations
Joint Investigation Resulting in Multiple Convictions for Emergency Rental
Assistance Theft
On December 4, 2025, the OIG completed its investigation for a joint Treasury OIG and
United States Secret Service matter, regarding multiple subjects who conspired to
defraud the ERA and Payroll Protection programs of approximately $690,000. Three
subjects were ultimately indicted and sentenced to a total of two years’ incarceration,
four years’ probation, and $621,050 in restitution – including $151,780 in criminal
forfeiture. The U.S. Attorney’s Office for the Northern District of Indiana prosecuted the
case.
Homeowners Assistance Fraud Investigation Resulted in $2.7 Million in
Civil Forfeiture
On March 5, 2026, the OIG completed its investigation regarding Homeowners
Assistance Fund fraud under the American Rescue Plan Act of 2021. The investigation
revealed that an unknown third party impersonated a vendor doing business with the
North Carolina Housing Finance Agency and defrauded $2,767,919.94 from the agency’s
Homeowners Assistance Fund program. The U.S. Attorney’s Office for the Eastern District
of North Carolina obtained a Civil Judicial Order and Default Judgement of Forfeiture for
the entire $2,767,919.94. These funds were returned to the Homeowners Assistance Fund
program.
Joint Investigation Resulting in American Rescue Plan Fraud Convictions
On January 20, 2026, the OIG completed its investigation for a joint Treasury OIG, Federal
Bureau of Investigation, and Housing and Urban Development OIG regarding allegations
of fraud against the Treasury funded Coronavirus Disease 2019 Relief programs under
the American Rescue Plan Act. The investigation resulted in a guilty plea of fraud against
the American Rescue Plan Act program and a sentencing of two subjects. The primary
subject was sentenced to 30 months imprisonment and the secondary subject received 3
years’ probation; restitution of $749,940 was also ordered. The United States Attorney’s
Office for the District of Delaware prosecuted the case.
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Investigations – Significant Investigations
Aviation Company Defrauds Payroll Support Program (PSP), Agrees to
Repay Debt
On December 4, 2025, the OIG completed its investigation regarding PSP fraud involving
an aviation company located in Honolulu, HI. The company received $1,697,129.40 in PSP
funds. A compliance review identified the company potentially used $866,910.93 of the
allocated funds for unauthorized expenses to include terminating employees after
receiving the PSP funds in violation of the PSP agreement. An agreement to repay the
funds was reached by the Treasury and the company resulting in the company repaying
the entire allocation of $1,697,129.40.
Prosecution Declined for Sovereign Citizen Defrauding Payment Protection
Program
On March 5th, 2026, the OIG completed its joint investigation with U.S. Postal Inspection
Service regarding an alleged Sovereign Citizen defrauding the Payment Protection
Program. The $126,000 Payment Protection Program loan was disbursed to the subject
although there were no records of any kind on file with the Delaware Department of
Labor. The United States Attorney’s Office for the District of Delaware declined to
prosecute this investigation due to lack of prosecutorial resources. The subject’s loan was
referred to the U.S. Department of the Treasury for non-payment.
Other Significant Investigations
Fraudulently Obtained Treasury Check Investigation Leads to 43
Convictions
On December 19, 2025, the OIG completed its investigation into a stolen identity refund
fraud scheme. The investigation resulted in 43 convictions of individuals involved in
obtaining and cashing fraudulently obtained Treasury checks. The defendants included
employees of money services businesses and the U.S. Postal Service. The charges
resulted in 43 convictions, who were sentenced to a combined 1,300 months in prison,
1,752 months of probation, and ordered to pay $27.5 million in restitution to the U.S.
Treasury. Defendants were also ordered to forfeit $2.24 million and pay $8,500 in special
assessments. In total, court-ordered financial actions totaled $29.83 million. The DOJ in
the District of Columbia, the District of Maryland, Greenbelt Office, and the DOJ Tax
Division prosecuted the case.
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Treasury Office of Inspector General Semiannual Report—March 2026
Office of Investigations – Significant Investigations
Civil Settlement for Maryland-Based Contractor in False Claims Act
Violations
On March 27, 2026, the OIG completed a joint investigation with the U.S. General
Services Administration, OIG, and the Treasury Inspector General for Tax Administration
into a civil False Claims Act case. The investigation determined that Hill ASC, Inc., an
information technology staffing company, engaged in fraudulent billing practices while
providing services to federal agencies from 2018 through 2023 under the U.S. General
Services Administration’s Multiple Award Schedule program. Hill ASC billed for
unqualified personnel, submitted claims outside the contract scope, and charged
unapproved or unallowable costs. The U.S. General Services Administration contract
included more than 100 task orders, most funded by the Office of the Chief Information
Officer within the Treasury. On July 14, 2025, Hill ASC agreed to pay $14,750,000.00 to
resolve allegations of False Claims Act violations related to these practices. The
settlement was negotiated by the U.S. Department of the Justice, Civil Division,
Commercial Litigation Branch, Fraud Section.
Suspected Money Laundering Through the Mutilated Currency Division
(MCD)
On January 30, 2026, the OIG completed its portion of a joint Federal Bureau of
Investigation and U.S. Customs and Border Patrol investigation into an individual
suspected of laundering currency through the Bureau of Engraving and Printing’s
Mutilated Currency Division (MCD). The joint investigation revealed that the subject
submitted more than $250,000 of mutilated currency, from multiple international
transfers from identified terrorist/high crime locations before submission to MCD.
Subject alleged they ultimately wanted to deposit a combined check of the funds into a
personal account in Canada despite the subject having no known ties to the U.S. The U.S.
District of Montana accepted prosecution but due to other prosecutorial priorities,
ultimately decided to not proceed with prosecution. However, this investigation revealed
MCD vulnerabilities resulting in the OIG issuing an OIG Systemic Observation report to
the Bureau of Engraving and Printing.
Page | 12
Treasury Office of Inspector General Semiannual Report—March 2026
Office of Investigations – Significant Investigations
Bureau Employee Sentenced for Possession of Child Sexual Abuse Material
On January 29, 2026, the OIG completed its investigation for a case involving a Bureau
employee possessing Child Sexual Abuse Material. The employee was arrested and
charged by local authorities in Shelby County, Alabama. The employee resigned and was
sentenced to 24 months’ probation, 120 months’ prison with all but 6 months
suspended. The District Attorney of the 18th Judicial Circuit, Shelby County, Alabama
prosecuted the case.
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Treasury Office of Inspector General Semiannual Report—March 2026
Treasury OIG Accomplishments and Activities
Treasury and OIG Joint Notice to ERA Grantees
Pursuant to the Joint Notice issued on October 4, 2024, during this semiannual reporting
period grantees repaid $93,395 to Treasury as follows:
ERA Voluntary Repayments to Treasury
Knox County, TN $87,229
State of Oklahoma $4,240
City of Oklahoma $1,926
Total Voluntary ERA Payments $93,395
Since the Joint Notice was issued, grantees have voluntarily repaid a total of $485,173 to
Treasury.
Treasury OIG Leadership Roles
Treasury OIG professionals serve various important public and private professional
organizations supporting the Federal audit community. Examples of participation in
these organizations are as follows:
Pauletta Battle, Assistant Inspector General for Audits, serves as the Council of the
Inspectors General on Integrity and Efficiency’s Accounting Standards Implementation
Committee member on the Federal Accounting Standards Advisory Board.
Julie Wong, Director, for Coronavirus Aid, Relief, and Economic Security Act Oversight, is
the National Single Audit Coordinator for Treasury.
Javan Wilson, Assistant Inspector General for Investigations, serves as the OIG Liaison to
the Council of the Inspectors General on Integrity and Efficiency and the Inspector
General for the Intelligence Community.
Page | 14
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Summary of Treasury OIG Activities
Number or
OIG Activity Dollar Value
Office of Counsel Activities
Regulation and legislation reviews 14
Instances where information was refused 0
Office of Audit Activities
Reports issued and other products 62
Disputed audit recommendations 0
Significant revised management decisions 0
Management decision in which the Inspector General disagrees 0
Questioned costs $31,629
Funds put to better use $0
Voluntary repayments* $93,395
Total monetary benefits $125,024
Office of Investigations Activities**
Criminal and judicial actions (including joint investigations)
Investigative reports issued 52
Cases referred for prosecution and/or litigation 19
Individuals referred for criminal prosecution to the Department of Justice 20
Individuals referred for criminal prosecution to state and local authorities 1
Cases accepted for prosecution and/or litigation 5
Arrests 3
Indictments/informations 8
Convictions (by trial and plea) 52
Criminal Fines / Restitution / Court Fees $50,669,128
Total OIG Monetary Benefits Identified $50,794,152
*Voluntary repayment in response to CRF audit work and our October 4, 2024, ERA Joint Notice.
**During the reporting period, subjects were sentenced to 1526 months of prison time, 2052 months of probation, 24 days of
community service, 48 months of home detention
Page | 15
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Metrics Used for Office of Investigations Activities
Treasury OIG investigative statistics listed above were obtained through reports drawn
from Treasury OIG’s Office of Investigations case management system from October 1,
2025, through March 31, 2026. Some statistics represent actions occurring in the case
prior to case closure but could not be reported until investigation was officially complete.
Reports with Unimplemented Recommendations
Issued prior to March 31, 2026
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.
Treasury OIG is reporting 219 open and unimplemented recommendations for 62 reports
issued prior to March 31, 2026, with over $4,041,525,549 in potential cost saving.
Treasury OIG considers all unimplemented recommendations for reports issued over
six months to be significant.
Treasury Programs and Operations
Date Report Number Report Title Number of Open
Recommendations
2/5/2020 OIG-20-027 RESOURCE MANAGEMENT: Audit of the Department 1
of the Treasury Departmental Offices Executive Pay
Adjustments, Bonuses, and Awards
8/17/2020 OIG-20-042 MANUFACTURING AND REVENUE: Mint Controls Over 1
Raw Materials and Coin Exchange Programs Need
Improvement
10/27/2021 OIG-22-004 INFORMATION TECHNOLOGY: Department of the 5
Treasury Federal Information Security Modernization
Act Fiscal Year 2021 Performance Audit for the
Collateral National Security Systems (Sensitive But
Unclassified)
10/28/2021 OIG-22-005 CYBERSECURITY/INFORMATION TECHNOLOGY: 2
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2021
Performance Audit (Sensitive But Unclassified)
Page | 16
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Date Report Number Report Title Number of Open
Recommendations
11/8/2021 OIG-22-008 DATA ACT: Treasury Submitted Higher Quality Non- 1
IRS Data in Its Fiscal Year 2020 Third Quarter DATA Act
Submission, However Improvements are Still Needed
9/2/2022 OIG-22-037 CYBERSECURITY/INFORMATION TECHNOLOGY: 1
Federal Information Security Modernization Act Fiscal
Year 2022 Performance Audit for the Unclassified
Systems (Redacted for Internal Use)
6/23/2023 OIG-CA-23-018* Desk Review of Chippewa Cree Tribe's Use of 1
Coronavirus Relief Fund Proceeds
7/7/2023 OIG-CA-23-026* Desk Review of Turtle Mountain Band of Chippewa 2
Indians’ Use of Coronavirus Relief Fund Proceeds
(Redacted)
7/7/2023 OIG-CA-23-027* Desk Review of Los Angeles County, California’s Use of 1
Coronavirus Relief Fund Proceeds
7/20/2023 OIG-CA-23-029* Desk Review of State of Florida’s Use of Coronavirus 1
Relief Fund Proceeds
7/21/2023 OIG-CA-23-033* Desk Review of Pleasant Point Indian Reservation, 2
Maine’s Use of Coronavirus Relief Fund Proceeds
7/21/2023 OIG-CA-23-034* Desk Review of State of Texas’ Use of Coronavirus 1
Relief Fund Proceeds
7/26/2023 OIG-CA-23-035* Desk Review of the State of Tennessee’s Use of 2
Coronavirus Relief Fund Proceeds
7/28/2023 OIG-CA-23-038 Desk Review of Native Village of Point Hope’s Use of 1
Coronavirus Relief Fund Proceeds
8/8/2023 OIG-CA-23-039* Desk Review of the Commonwealth of the Northern 2
Mariana Islands Use of Coronavirus Relief Fund
Proceeds
8/8/2023 OIG-CA-23-040* Desk Review of the Commonwealth of Puerto Rico’s 2
Use of Coronavirus Relief Fund Proceeds
8/8/2023 OIG-CA-23-041* Desk Review of Navajo Nation Tribal Government’s 8
Use of Coronavirus Relief Fund Proceeds (Redacted)
Page | 17
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Date Report Number Report Title Number of Open
Recommendations
8/9/2023 OIG-CA-23-042* Desk Review of the Commonwealth of Virginia’s Use of 4
Coronavirus Relief Fund Proceeds
10/17/2023 OIG-CA-24-003* City of Springfield, Massachusetts – Use of Coronavirus 1
Relief Fund Proceeds
3/21/2024 OIG-CA-24-015 Memorandum – Inquiry on Revolving Door Between 2
the Largest Accounting Firms and the Department of
the Treasury
1/16/2024 OIG-24-022 CYBERSECURITY/INFORMATION TECHNOLOGY: 2
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2023
Performance Audit for the Unclassified Systems
(Sensitive But Unclassified)
1/16/2024 OIG-24-023 CYBERSECURITY/INFORMATION TECHNOLOGY: 1
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2023
Performance Audit for the Collateral National Security
Systems (Sensitive But Unclassified)
5/29/2024 OIG-24-027 BILL AND COIN MANUFACTURING: The Mint Needs to 2
Enhance Controls over Gold Acquisitions
9/9/2024 OIG-24-032 GOVERNMENT-WIDE FINANCIAL SERVICES: Audit of 1
Direct Express Program Disputes Related to Certain
Cardholder Accounts
9/10/2024 OIG-CA-24-027 CYBERSECURITY/INFORMATION TECHNOLOGY: 2
Assessment of the Department of the Treasury’s
Incident Response Reporting Process for Select
Incidents
9/10/2024 OIG-24-034 CYBERSECURITY/INFORMATION TECHNOLOGY: 6
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2024
Performance Audit for the Unclassified Systems
10/23/2024 OIG-CA-25-004* Desk Review of Baltimore County, Maryland's Use of 1
Coronavirus Relief Fund Proceeds
10/23/2024 OIG-CA-25-005* Desk Review of the State of North Carolina's Use of 1
Coronavirus Relief Fund Proceeds
11/13/2024 OIG-CA-25-007* Desk Review of the State of West Virginia's Use of 2
Coronavirus Relief Fund Proceeds (Redacted)
Page | 18
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Date Report Number Report Title Number of Open
Recommendations
12/2/2024 OIG-CA-25-010* Desk Review of the Government of Guam’s Use of 4
Coronavirus Relief Fund Proceeds
12/4/2024 OIG-CA-25-012* Desk Review of the Commonwealth of Pennsylvania’s 1
Use of Coronavirus Relief Fund Proceeds
12/12/2024 OIG-CA-25-013* Desk Review of the City of Fresno, California’s Use of 2
Coronavirus Relief Fund Proceeds
12/6/2024 OIG-25-013 FINANCIAL MANAGEMENT: Management Letter for 3
the Deficiencies in Internal Control over Cash
Management Systems at the Bureau of the Fiscal
Service Identified during the Audit of the Department
of the Treasury's Consolidated Financial Statements for
Fiscal Years 2024 and 2023
12/12/2024 OIG-CA-25-015 Desk Review of the State of Mississippi’s Use of 2
Coronavirus Relief Fund Proceeds
12/12/2024 OIG-CA-25-016* Desk Review of State of Arizona's Use of Coronavirus 6
Relief Fund Proceeds
12/17/2024 OIG-CA-25-017* Desk Review of the District of Columbia’s Use of 17
Coronavirus Relief Fund Proceeds
12/12/2024 OIG-25-018 FINANCIAL MANAGEMENT: Management Letter for 1
the Audit of the Bureau of Engraving and Printing’s
Financial Statements for Fiscal Years 2024 and 2023
12/17/2024 OIG-CA-25-018* Desk Review of the State of Utah's Use of Coronavirus 9
Relief Fund Proceeds
12/19/2024 OIG-CA-25-019* Desk Review of the Commonwealth of Massachusetts’ 10
(Massachusetts) Use of Coronavirus Relief Fund
Proceeds
12/17/2024 OIG-CA-25-020* Desk Review of the State of North Dakota's Use of 2
Coronavirus Relief Fund Proceeds
12/18/2024 OIG-CA-25-022* Desk Review of Oklahoma County, Oklahoma's Use of 4
Coronavirus Relief Fund Proceeds
12/18/2024 OIG-CA-25-023* Desk Review of the State of Oklahoma's Use of 1
Coronavirus Relief Fund Proceeds
Page | 19
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Date Report Number Report Title Number of Open
Recommendations
12/20/2024 OIG-CA-25-024* Desk Review of the Kiowa Tribe of Oklahoma’s Use of 12
Coronavirus Relief Fund Proceeds
4/2/2025 OIG-25-025 ANTI-MONEY LAUNDERING/TERRORIST FINANCING: 1
OIA Does Not Have Artificial Intelligence Capabilities
and Faces Barriers to its Accelerated Adoption
12/19/2024 OIG-CA-25-025* Desk Review of the State of Washington's Use of 4
Coronavirus Relief Fund Proceeds
2/7/2025 OIG-CA-25-026* Desk Review of the State of New Jersey's Use of 23
Coronavirus Relief Fund Proceeds
12/19/2024 OIG-CA-25-027* Desk Review of the Native Village of Selawik’s Use of 1
Coronavirus Relief Fund Proceeds
9/30/2025 OIG-25-029 CYBERSECURITY/INFORMATION TECHNOLOGY: Audit 12
of the Department of the Treasury Federal Information
Security Modernization Act, Fiscal Year 2025
Performance Audit for the Unclassified Systems
12/20/2024 OIG-CA-25-029* Desk Review of the State of Connecticut’s Use of 3
Coronavirus Relief Fund Proceeds
3/20/2025 OIG-CA-25-038 Complaint Referral Memorandum – United States 3
Mint’s Congressional Award Medal Loss
5/29/2025 OIG-CA-25-049* Desk Review of the State of Oregon’s Use of 1
Coronavirus Relief Fund Proceeds
8/13/2025 OIG-CA-25-054* Emergency Rental Assistance (ERA1) Notice of 1
Recoupment - State of North Carolina
8/25/2025 OIG-CA-25-056* Emergency Rental Assistance (ERA1) Program Notice 1
of Recoupment – State of Florida
1/23/2026 OIG-26-012 Audit of the Treasury Forfeiture Fund's Financial 2
Statements for FY 2025
1/23/2026 OIG-26-013 Management Letter for the Audit of the Treasury 2
Forfeiture Fund's Financial Statements for FY 2025
Page | 20
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Date Report Number Report Title Number of Open
Recommendations
1/27/2026 OIG-26-014 Audit of the Department of the Treasury's Consolidated 2
Financial Statements for Fiscal Year 2025
2/12/2026 OIG-26-015 Audit of FinCEN's Management of BSA Data—User 14
Access and System of Records Notice
2/13/2026 OIG-26-016 Management Letter for the Audit of the Department of 2
the Treasury’s Consolidated Financial Statements for
Fiscal Year 2025
2/13/2026 OIG-26-017 Management Letter for the Deficiencies in Internal 11
Control over Cash Management Systems at the Bureau
of the Fiscal Service Identified during the Audit of the
Department of the Treasury’s Consolidated Financial
Statements for Fiscal Year 2025
3/13/2026 OIG-26-024 Audit of Air Carrier Worker Support Certifications - Air 1
Wisconsin Airlines LLC
3/13/2026 OIG-26-025 Audit of Air Carrier Worker Support Certifications - IBC 1
Airways, Inc.
Other Federal, State, and Local Entities
Date Report Number Report Title Number of Open Questioned
Recommendations Costs
9/8/2025 OIG-CA-25-058* DCAA Examination Report on Crane 1 $0
& Co., Inc.’s Price Proposal for
Distinctive Currency Paper in
Response to Solicitation No. RFP
2031ZA25R00002
*Denotes reports that were issued over 6 months for which no management decision has been made as of March 31, 2026.
Page | 21
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Closed Investigations of Senior Government Employees Not
Publicly Disclosed
October 1, 2025 through March 31, 2026
Treasury OIG closed four investigations involving senior Government employees during
the period that were not publicly disclosed. Of these investigations, all four substantiated
an instance of misconduct against a senior Government employee. All instances were
referred to the appropriate venue for action.
Allegation/Disposition
On January 29, 2026, Treasury OIG completed its investigation for a referral from the
Virginia State Police alleging that a Bureau employee engaged their police lights
installed in their personally owned vehicle in the presence of a Virginia State Police
officer on a VA State Highway. When questioned by Virginia State Police, the employee
showed identification indicating they were law enforcement despite no jurisdiction
and/or work-related purpose in the area where the activity occurred. The OIG
investigation determined the employee violated 31 CFR 0.201 Acting within scope of
authority; specifically, engaging in activity contrary to any law. The vehicle in question is
registered as a personally owned vehicle rather than a law enforcement vehicle. The
presence of police lights in the personally owned vehicle renders the vehicle
noncompliant with Virginia State Code. A final report was provided to the Bureau for
action deemed appropriate.
Substantiated
The OIG completed its investigation regarding a Bureau contractor posting concerning
messages about Treasury Secretary Scott Bessent and Immigration, Customs, and
Enforcement agents on their personal social media account during official work hours.
OIG was able to capture and review the messages for prosecution and conduct several
interviews. The United States Attorney’s Office, Northern District of Texas declined to
prosecute citing insufficient evidence to charge a federal violation. Prior to the issuance
of the declination, the Bureau contractor deleted the posts and was terminated from their
position.
Substantiated
Page | 22
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
On December 17, 2025, the OIG completed its investigation into an allegation of
unauthorized sensitive information transfer to an external storage device by a senior-
level former Departmental Office employee. The former employee was interviewed, email
records were reviewed, and external storage devices were examined. The OIG
investigation confirmed suspected sensitive documents were deleted from the devices in
question and the employee confirmed he is no longer in possession of any sensitive
documents. The OIG provided a report to the Departmental Office.
Substantiated
On January 15, 2025, the OIG completed its investigation regarding a Supervisory
Bureau Human Resources Specialist engaging in outside employment during official
government business hours. The U.S. Attorney’s Office for the District of Columbia
declined to prosecute the matter and the case was referred to the Bureau for action
deemed appropriate.
Substantiated
Trafficking Victims Prevention and Protection Reauthorization Act
of 2022
October 1, 2025 through March 31, 2026
There were no suspected violations identified during the period, resulting in zero
investigations initiated. Consequently, there were no investigation outcomes to report,
and no specific actions were recommended for improvement.
Summary of Instances of Whistleblower Retaliation
There were no instances of possible whistleblower retaliation during this reporting
period, October 1, 2025 – March 31, 2026.
Page | 23
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Summary of Attempts to Interfere With Treasury OIG
Independence, Including Instances Where Information or
Assistance Request was Refused
There were no attempts to resist, delay, or restrict Treasury OIG access to records or
other information and no instances where information or assistance request was refused
during this reporting period, October 1, 2025 – March 31, 2026.
Page | 24
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Audit Reports Issued with Questioned Costs
Total No. Total Questioned
Category of Reports Costs
For which no management decision had been made by the beginning
of the reporting period 49 $4,139,780,936
Which were issued during the reporting period 2 $31,629
Subtotals 51 $4,139,812,565
For which a management decision was made during the reporting
period 15 $98,287,017
Dollar value of disallowed costs - $2,942,505
Dollar value of costs not disallowed - $95,344,512
For which no management decision was made by the end of the
reporting period 36 $4,041,525,548
For which no management decision was made within 6 months of
issuance 34 $4,041,493,919
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.
Page | 25
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Audit Reports Issued with Recommendations that Funds Be Put
to Better Use
There were no reports issued with recommendations that funds be put to better use.
Reports for Which No Management Comment was Returned
Within 60 Days
As of March 31, 2026
There were no such reports issued for comment over 60 days as of the end of the
reporting period.
Significant Revised Management Decisions
There were no significant management decisions revised during the reporting period.
Significant Disagreed Management Decisions
There were no significant disagreed management decisions during the reporting period.
Page | 26
Treasury Office of Inspector General Semiannual Report—March 2026
Statistical Summary
Peer Reviews
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 three years. The objective of
an external peer review is 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 Department of Energy’s
OIG. In its report dated November 27, 2024, the U.S. Department of Energy OIG rendered
a Pass rating for our system of quality control in effect for the year ended March 31,
2024. External audit peer review reports of our office are available on Treasury OIG’s
website.
On May 25, 2025, Treasury OIG rendered a Pass rating to the U. S. Environmental
Protection Agency OIG for its system of quality control in effect for the year ended
September 30, 2023.
Office of Investigations
Council of the Inspectors General on Integrity and Efficiency mandates that the
investigative law enforcement operations of all OIGs undergo peer reviews every three
years to ensure compliance with (1) Council of the Inspectors General on Integrity and
Efficiency investigations quality standards and (2) the relevant guidelines established by
the Office of the Attorney General of the United States.
In its report dated November 6, 2024, the U.S. Department of Education OIG found our
office to be in compliance with all relevant guidelines for the review period. No peer
reviews occurred during this reporting period.
Page | 27
Treasury Office of Inspector General Semiannual Report—March 2026
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 (DIF) 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 DIF 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 OIG of the Federal banking agency must
(1) identify the estimated losses that have been incurred by the DIF 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 to 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 failed banks supervised by the Office
of the Comptroller of the Currency with material loss to the DIF. There was one
bank that failed during the prior period with a non-material loss to the DIF. Santa
Anna National Bank, Santa Anna, Texas was closed on June 27, 2025, with an
estimated loss to the DIF of $23.5 million. (OIG-26-023)
Overseas Contingency Operations Quarterly Summary
Memorandums to the Department of War Office of Inspector
General
During this reporting period, we issued two summary memorandums to the
Department of War OIG regarding information we obtained on Treasury’s activities
with respect to disrupting the Islamic State of Iraq and Syria’s finances. The
Page | 28
Treasury Office of Inspector General Semiannual Report—March 2026
Other Reporting Requirements and Requests
memorandums included specific examples of activities to disrupt Islamic State of
Iraq and Syria’s financing, information on Treasury programs that combat terrorist
financing, and work we performed or plan to perform to review these programs.
(OIG-CA-26-022, OIG-CA-26-023)
Joint Purchase Card Violations Report
The Government Charge Card Abuse Prevention Act of 2012, Public Law 112-194,
requires the head of each executive agency with more than $10 million in
purchase card spending annually, and each Inspector General of such an executive
agency, on a semiannual basis, to submit to the Director of OMB a joint report on
confirmed violations involving misuse of a purchase card by employees of such
executive agency and the related disciplinary actions. OMB prescribed the format
for the semiannual report, which is transmitted by Treasury to OMB. We reviewed
the Semi-Annual Report on Purchase and Integrated Card Violations, for the period
of April 1, 2025, through September 30, 2025. Consistent with supporting
documents provided by Treasury’s bureaus and offices, there were no confirmed
purchase charge card violations during this reporting period. (OIG-CA-26-020)
Annual Reports on the Status of Implementation of Purchase
and Travel Card Audit Recommendations
We issued annual reports on the progress made by Treasury and the Council in
implementing charge card related audit recommendations in accordance with the
Charge Card Act and OMB Memorandum M-13-21, “Implementation of the
Government Charge Card Abuse Prevention Act of 2012.” Our office has not issued
any charge card related audit findings and recommendations to Treasury or the
Council and therefore had no updates to report for FY 2025. (OIG-CA-26-016,
OIG-CA-26-017)
Page | 29
Treasury Office of Inspector General Semiannual Report—March 2026
Listing of Audit Products Issued
Office of Audit
Report Title Report Number
November 2025
Gulf Coast Ecosystem Restoration Council Management Challenges Letter 2026 OIG-CA-26-001
Report on the Bureau of the Fiscal Service’s Description of its Administrative Resource Center Shared Services System and the OIG-26-001
Suitability of the Design and Operating Effectiveness of its Controls for the Period July 1, 2024 to June 30, 2025
December 2025
Final Determination on Corrective Actions for Desk Review of City of Fresno, California’s Use of Coronavirus Relief Fund Proceeds OIG-CA-26-002
(OIG-CA-25-013)
Final Determination on Corrective Actions for Desk Review of City of Phoenix, Arizona’s Use of Coronavirus Relief Fund Proceeds OIG-CA-26-003
(OIG-CA-23-032)
Final Determination on Corrective Actions for Desk Review of Bergen County, New Jersey’s Use of Coronavirus Relief Fund OIG-CA-26-004
Proceeds (OIG-CA-24-028)
Management and Performance Challenges Facing the Department of the Treasury OIG-CA-26-005
Termination Memorandum - Audits of the Department of the Treasury's Implementation of Pandemic Programs OIG-CA-26-006
(Job Codes: A-FA-20-039, A-FA-20-040, A-ER-21-039, A-HA-21-045, A-SL-22-079, A-SL-22-002, A-SL-22-078, A-SL-22-081)
Final Determination on Corrective Actions for Desk Review of State of Ohio’s Use of Coronavirus Relief Fund Proceeds OIG-CA-26-007
(OIG-CA-23-037)
Final Determination on Corrective Actions for Desk Review of the Native Village of Point Hope’s Use of Coronavirus Relief Fund OIG-CA-26-008
Proceeds (OIG-CA-23-038)
Audit of the United States Mint's Schedules of Custodial Deep Storage Gold and Silver Reserves as of September 30, 2025 and 2024 OIG-26-002
Final Determination on Corrective Actions for Desk Review of the State of New Hampshire’s Use of Coronavirus Relief Fund OIG-CA-26-009
Proceeds (OIG-CA-25-021)
Final Determination on Corrective Actions for Desk Review of the City of Dallas, Texas’ Use of Coronavirus Relief Fund Proceeds OIG-CA-26-010
(OIG-CA-23-028)
Page | 30
Treasury Office of Inspector General Semiannual Report—March 2026
Report Title Report Number
Audit of the Gulf Coast Ecosystem Restoration Council's Financial Statements for Fiscal Years 2025 OIG-26-003
Audit of the Department of the Treasury’s Schedules of United States Gold Reserves Held by Federal Reserve Banks as of OIG-26-004
September 30, 2025 and 2024
Final Determination on Corrective Actions for Desk Review of Dallas County, Texas’ Use of Coronavirus Relief Fund Proceeds OIG-CA-26-011
(OIG-CA-25-014)
Final Determination on Corrective Actions for Desk Review of State of Nebraska’s Use of Coronavirus Relief Fund Proceeds OIG-CA-26-012
(OIG-CA-25-028)
Report on Bureau of the Fiscal Service's FIBB's Description of its Investment and Redemption Services and the Suitability of the OIG-26-005
Design and Operating Effectiveness of its Controls for the Period August 1, 2024 to July 31, 2025
Report on the Bureau of the Fiscal Service’s Funds Management Branch’s Description of its Trust Funds Management Services and OIG-26-006
the Suitability of the Design and Operating Effectiveness of its Controls for the Period August 1, 2024 to July 31, 2025
Final Determination on Corrective Actions for Desk Review of San Bernardino County, California’s Use of Coronavirus Relief Fund OIG-CA-26-013
Proceeds (OIG-CA-23-030)
Annual Plan, Fiscal Year 2026, Office of Inspector General, Department of the Treasury OIG-CA-26-014
January 2026
Audit of the Federal Financing Bank’s Financial Statements for Fiscal Year 2025 OIG-26-007
Final Determination on Corrective Actions for Desk Review of Bucks County, Pennsylvania’s Use of Coronavirus Relief Fund OIG-CA-26-015
Proceeds (OIG-CA-24-019)
Audit of the Office of D.C. Pensions' Financial Statements for Fiscal Year 2025 OIG-26-008
Audit of the Community Development Financial Institutions Fund’s Financial Statements for Fiscal Year 2025 OIG-26-009
Annual Report to OMB on the Progress of Treasury's Implementation of Charge Card Recommendations OIG-CA-26-016
Audit of the Office of the Comptroller of the Currency's Financial Statements for Fiscal Year 2025 OIG-26-010
2025 Annual Report (Gulf Coast) on Charge Card Status of Recommendations Transmittal to OMB OIG-CA-26-017
Page | 31
Treasury Office of Inspector General Semiannual Report—March 2026
Report Title Report Number
Final Determination on Corrective Actions for Desk Review of State of Mississippi’s Use of Coronavirus Relief Fund Proceeds OIG-CA-26-018
(OIG-CA-25-015)
Audit of the Exchange Stabilization Fund’s Financial Statements for Fiscal Year 2025 OIG-26-011
Audit of the Treasury Forfeiture Fund's Financial Statements for FY 2025 OIG-26-012
Management Letter for the Audit of the Treasury Forfeiture Fund's Financial Statements for FY 2025 OIG-26-013
Audit of the Department of the Treasury's Consolidated Financial Statements for Fiscal Year 2025 OIG-26-014
February 2026
Joint Purchase and Integrated Card Violation Report (April 1, 2025, through September 30, 2025) * OIG-CA-26-020
Audit of FinCEN's Management of BSA Data—User Access and System of Records Notice OIG-26-015
Management Letter for the Audit of the Department of the Treasury’s Consolidated Financial Statements for Fiscal Year 2025 OIG-26-016
Management Letter for the Deficiencies in Internal Control over Cash Management Systems at the Bureau of the Fiscal Service OIG-26-017
Identified during the Audit of the Department of the Treasury’s Consolidated Financial Statements for Fiscal Year 2025
Audit of the Alcohol and Tobacco Tax and Trade Bureau's Financial Statements for Fiscal Year 2025 OIG-26-018R
Final Determination on Corrective Actions for Desk Review of the State of California's Use of Coronavirus Relief Fund Proceeds OIG-CA-26-021
(OIG-CA-23-025)
Audit of the Bureau of Engraving and Printing’s Financial Statements for Fiscal Year 2025 OIG-26-019
Management Letter for the Audit of the Bureau of Engraving and Printing’s Financial Statements for Fiscal Year 2025 OIG-26-020
Audit of the United States Mint's Financial Statements for Fiscal Year 2025 OIG-26-021
Management Letter for the Audit of the United States Mint's Financial Statements for Fiscal Year 2025 OIG-26-022
Page | 32
Treasury Office of Inspector General Semiannual Report—March 2026
Report Title Report Number
March 2026
Overseas Contingency Operations - Summary of Work Performed by the Department of the Treasury Related to Terrorist Financing OIG-CA-26-022
and Anti-Money Laundering for the Fourth Quarter Fiscal Year 2025
Overseas Contingency Operations - Summary of Work Performed by the Department of the Treasury Related to Terrorist Financing OIG-CA-26-023
and Anti-Money Laundering for the First Quarter Fiscal Year 2026
Final Determination on Corrective Actions for Desk Review of Lancaster County, Pennsylvania’s Use of Coronavirus Relief Fund OIG-CA-26-024
Proceeds (OIG-CA-23-024)
Failed Bank Limited Review - Santa Anna National Bank OIG-26-023
Emergency Rental Assistance (ERA1) Program Notice of Recoupment – City of Houston, Texas OIG-CA-26-025
Emergency Rental Assistance Program (ERA2) – Questioned Cost Finding, Moreno Valley, California OIG-CA-26-026
Audit of Air Carrier Worker Support Certifications - Air Wisconsin Airlines LLC OIG-26-024
Audit of Air Carrier Worker Support Certifications - IBC Airways, Inc. OIG-26-025
Audit of Air Carrier Worker Support Certifications - Ameriflight, LLC OIG-26-026
Audit of the Department of the Treasury’s Cybersecurity Information Sharing OIG-26-027
Emergency Rental Assistance Program (ERA 1) Notice of Recoupment – Harris County, Texas OIG-CA-26-027
*Closed audits not disclosed to public
Page | 33
Treasury Office of Inspector General Semiannual Report—March 2026
Council of Inspectors General on Financial Oversight
Report Title Report Number
December 2025
CIGFO December Meeting Minutes No Report Number
Page | 34
Treasury Office of Inspector General Semiannual Report—March 2026
References to the Inspector General Act
Section Requirement Page
Section 5(a)(1) Significant problems, abuses and deficiencies 4-13
Section 5(a)(2) Significant recommendations for corrective action 16-21
Section 5(a)(3) Reports with corrective action not completed 16-21
Section 5(a)(4) Matters referred to prosecutive authorities 15
Section 5(a)(5) Information or assistance refused 24
Section 5(a)(6) List of audit, inspection, and evaluation reports issued 30-34
Section 5(a)(7) Summaries of significant reports 4-13
Section 5(a)(8) Audit, inspection, and evaluation reports—questioned costs 15
Section 5(a)(9) Audit, inspection and evaluation reports—funds to be put to better use 15
Section 5(a)(10) Prior audit, inspection, and evaluation reports unresolved 16-21
Section 5(a)(11) Significant revised management decisions 26
Section 5(a)(12) Significant management decisions with which OIG disagreed 26
Section 5(a)(14– Peer reviews conducted 27
16)
Section 5(a)(17– Statistics on investigative reports, referrals, prosecutions, indictments 15
18)
Section 5(a)(19) Substantiated Investigations involving senior government employees 22-23
Section 5(a)(20) Description of whistleblower retaliation 23
Section 5(a)(21) Any establishment attempts to interfere with independence 24
Section 5(a)(22) Closed audits, evaluations, inspections, and investigations not disclosed to public 30-33
Page | 35
Treasury Office of Inspector General Semiannual Report—March 2026
Abbreviations
Abbreviation Definition
BSA Bank Secrecy Act
CARES Act Coronavirus Aid, Relief, and Economic Security Act
Council Gulf Coast Ecosystem Restoration Council
CRF Coronavirus Relief Fund
DIF Deposit Insurance Fund
DOJ Department of Justice
ERA Emergency Rental Assistance
Fiscal Service Bureau of the Fiscal Service
FINCEN Financial Crimes Enforcement Network
FY Fiscal Year
IPA Independent Public Accounting firm
IRS Internal Revenue Service
Harris County Harris County, Texas
Houston City of Houston, Texas
MOU Memorandum of Understanding
MCD Mutilated Currency Division
NOAA National Oceanic and Atmospheric Administration
OIG Office of Inspector General
OMB Office of Management and Budget
PSP Payroll Support Program
RESTORE Act Resources and Ecosystems Sustainability, Tourist
Opportunities, and Revived Economies of the Gulf Coast
States Act of 2012
Science Program Gulf Coast Ecosystem Restoration Science, Observation,
Monitoring, and Technology Program
Treasury Department of the Treasury
Page | 36
Treasury Office of Inspector General Semiannual Report—March 2026
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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