Treasury OIG: Semiannual Report to Congress, October 1, 2022 – March 31, 2023 (OIG-CA-23-016)
Summary
This Treasury Office of Inspector General Semiannual Report to Congress (OIG-CA-23-016) covers October 1, 2022 to March 31, 2023. The Office of Audit issued 35 products and identified $28,152 in questioned costs, and work by the Office of Investigations resulted in 3 indictments and 12 convictions. Saggar & Rosenberg, P.C. checked Air Carrier Payroll Support Program (PSP1) data for three carriers and found that Wings Air Helicopters, LLC incorrectly reported information on its application. Castro & Company, LLC reviewed Coronavirus Relief Fund use by Broward County, the Fort McDermitt Paiute-Shoshone Tribe, the State of New York and the Town of Hempstead. Acting Inspector General Richard K. Delmar writes that the office oversaw 12 pandemic recovery programs and set up a team to resolve complaints about the Emergency Rental Assistance programs.
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“Treasury OIG: Semiannual Report to Congress, October 1, 2022 – March 31, 2023 (OIG-CA-23-016).”
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Semiannual Report to Congress
October 1, 2022 – March 31, 2023
OIG-CA-23-016
Office of Inspector General
Department of the Treasury
Highlights
During this semiannual reporting period, the Office of Audit issued 35 products. The
office also identified $28,152 in questioned costs. Work by the Office of Investigations
resulted in 3 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 Corvus Airlines, Inc.
o Empire Airlines, Inc.
o Wings Air Helicopters, LLC
S&R determined that Wings Air Helicopters, LLC, incorrectly reported information on
its PSP1 Application to the Department of the Treasury (Treasury).
Castro & Company, LLC (Castro), a certified independent public accounting firm,
working under a contract with and supervised by our office, assesed the use of
Coronavirus Relief Funds (CRF) Proceeds for the following recipients:
o Broward County (Florida)
o Fort McDermitt Paiute-Shoshone Tribe
o The State of New York
o Town of Hempstead (New York)
Castro determined that either the CRF recipients’ risk of unallowable use of CRF was
low or moderate, and did not recommend Treasury Office of Inspector General
perform an audit.
Our joint investigation revealed eleven subjects conspired to defraud financial
institutions by depositing forged, counterfeit, or stolen checks using stolen identities.
The U.S. Attorney’s Office for the Eastern District of North Carolina prosecuted the
subjects who were sentenced to 52 months in prison, 852 months of probation, and
$600,000 in restitution.
Treasury Office of Inspector General Semiannual Report—March 2023 ii
Message from the Acting Inspector General
During this reporting period, the Department of the Treasury (Treasury) Office of
Inspector General (OIG) continued its in-depth oversight of the 12 pandemic recovery
programs administered by Treasury, and issued a total of 23 audits, 4 desk reviews,
and 8 additional evaluation and other oversight review products. In addition, we
established a cross-functional team to review and resolve a large number of complaints
about the Emergency Rental Assistance programs.
Treasury OIG continues to provide leadership and administrative support to the Council
of Inspectors General on Financial Oversight (CIGFO), the organization established by
the Dodd-Frank Wall Street Reform and Consumer Protection Act to oversee and
monitor the activities of the Financial Stability Oversight Council (FSOC), which is
chaired by the Secretary of the Treasury. During this reporting period, CIGFO
heightened its monitoring of FSOC’s responses to the financial sector disturbances
generated by failures in financial institutions with services concentrated in the
technology industry.
I am very proud of Treasury OIG’s accomplishments during this past 6-month reporting
period, and of the impressive expertise and professionalism of all of our employees,
who continue to rise to the dual challenges of remote work and expanded workload
caused by the coronavirus disease pandemic.
Richard K. Delmar
Acting Inspector General
Treasury Office of Inspector General Semiannual Report—March 2023 iii
Contents
Highlights ......................................................................................... ii
Message from the Acting Inspector General ......................................... iii
Contents ......................................................................................... iv
Treasury Office of Inspector General Overview .................................... 1
Management and Performance Challenges ........................................... 4
Office of Audit – Significant Audits and Other Products ........................ 5
Financial Management ............................................................................................ 5
CARES Act Oversight ............................................................................................. 9
CARES Act Compliance Monitoring ........................................................................ 10
Other Product ...................................................................................................... 13
Office of Investigations – Significant Investigations ............................ 15
CARES Act Investigations ..................................................................................... 15
Other Significant Investigations .............................................................................. 15
Treasury OIG Accomplishments and Activities ................................... 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 ............ 41
Summary of Instances of Whistleblower Retaliation .................................................. 42
Summary of Attempts to Interfere With Treasury OIG Independence, Including Instances
Where Information or Assistance Request was Refused............................................. 42
Listing of Audit Products Issued ............................................................................. 43
Audit Reports Issued With Questioned Costs ........................................................... 47
Audit Reports Issued With Recommendations that Funds Be Put to Better Use ............. 48
Reports for Which No Management Comment was Returned Within 60 Days ............... 49
Reports Issued Over 6 Months for Which No Management Decision Has Been Made ..... 49
Significant Revised Management Decisions .............................................................. 49
Significant Disagreed Management Decisions ........................................................... 50
Peer Reviews ....................................................................................................... 50
Treasury Office of Inspector General Semiannual Report—March 2023 iv
Contents
Other Reporting Requirements and Requests ...................................... 52
References to the Inspector General Act............................................ 54
Abbreviations ................................................................................. 55
Treasury Office of Inspector General Semiannual Report—March 2023 v
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 19781.
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 and the Government Accountability Office (GAO) perform oversight
related to the Internal Revenue Service. A Special Inspector General and GAO perform
oversight related to the Troubled Asset Relief Program. The Special Inspector General
for Pandemic Recovery and GAO perform 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
1
5 U.S.C. §§401-424
Treasury Office of Inspector General Semiannual Report—March 2023 1
Treasury Office of Inspector General Overview
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
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 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 Worker Support programs authorized by
the Coronavirus Aid, Relief, and Economic Security Act, and other pandemic
legislation.
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 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 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
Giglio2 requests; (2) conducting ethics training; (3) ensuring compliance with financial
2
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—March 2023 2
Treasury Office of Inspector General Overview
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 2023 appropriation is $48.8 million, which includes 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 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, which included $24.9 million for the
Coronavirus Relief Fund, $2.8 million for ERA-Oversight, $2.8 million for ERA-
Monitoring, and $1.72 million for Homeowner Assistance Fund programs. As of March
31, 2023, Treasury OIG had 243 full-time staff.
Treasury Office of Inspector General Semiannual Report—March 2023 3
Management and Performance Challenges
The Reports Consolidation Act of 2000 requires that the Department of the Treasury
(Treasury) Inspector General annually provide information 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, Acting 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
Grant and Interagency Agreement Compliance Monitoring
.
Treasury Office of Inspector General Semiannual Report—March 2023 4
Office of Audit – Significant Audits and Other Products
Financial Management
Treasury’s Consolidated Financial Statements
KPMG LLP (KPMG), a certified independent public accounting firm working under a
contract with and supervised by our office, issued an unmodified opinion on the
Department of the Treasury’s (Treasury) fiscal years 2022 and 2021 consolidated
financial statements. KPMG reported (1) a significant deficiency in internal control over
cash management information systems at the Bureau of the Fiscal Service (Fiscal
Service), representing a significant deficiency for Treasury as a whole, and (2) a
significant deficiency in internal control over unpaid tax assessments and a significant
deficiency in internal control over financial reporting systems at the Internal Revenue
Service (IRS), collectively representing a significant deficiency for Treasury as a whole.
KPMG also reported that Treasury’s financial management systems did not
substantially comply with certain requirements of the Federal Financial Management
Improvement Act of 1996 (FFMIA) related to Federal financial management systems
requirements. KPMG found no other instances of reportable noncompliance with laws,
regulations, contracts, and grant agreements tested. (OIG-23-007)
In connection with its audit of Treasury’s consolidated financial statements, KPMG
issued a management report, which provided the specific findings and
recommendations pertaining to the significant deficiency in internal control over cash
management information systems and the related noncompliance with FFMIA’s Federal
financial management systems requirements at Fiscal Service that were summarized in
the auditor’s report. (OIG-23-019) Additionally, KPMG issued a management letter
recommending improvements to strengthen internal control over financial reporting
with respect to (1) segregation of duties for database audit log reviews, (2) periodic
review of user access, (3) review over Treasury Information Executive Repository fund
symbol reference report, (4) documentation and review of the State and Local Fiscal
Recovery Program recipients reporting submissions, and (5) review of the Office of the
Recovery Programs manual journal entries. (OIG-23-009)
Other Treasury Financial 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 and any component entities designated by the Office of Management and
Budget (OMB). In this regard, OMB designated IRS for annual financial statement
Treasury Office of Inspector General Semiannual Report—March 2023 5
Office of Audit – Significant Audits and Other Products
audits. The financial statements of certain other Treasury component entities are
audited either pursuant to other requirements, their materiality to Treasury’s
consolidated financial statements, or as a management initiative. The table below
shows the audit results for fiscal years 2022 and 2021.
Treasury-audited financial statements and related audits
Fiscal year 2022 audit results Fiscal year 2021 audit results
Material Material
weak- Significant weak- Significant
Entity Opinion nesses deficiencies Opinion nesses deficiencies
Government Management Reform Act/Chief Financial Officers Act requirements
Department of the Treasury U 0 2 U 0 2
Internal Revenue Service (A) U 0 2 U 0 2
Other required audits
Office of Financial Stability
(TARP) (A) U 0 0 U 0 0
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 1 U 0 1
Federal Financing Bank U 0 0 U 0 0
Treasury Forfeiture Fund U 0 0 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 1
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
(U) Unmodified opinion.
(A) Audited by the Government Accountability Office.
In connection with the fiscal year 2022 financial statement audits, the auditors issued
management letters on certain matters involving deficiencies in internal control at the
United States Mint (Mint) (OIG-23-011), the Bureau of Engraving and Printing (BEP)
(OIG-23-015), and the Office of the Comptroller of the Currency (OCC) (OIG-23-018).
Treasury Office of Inspector General Semiannual Report—March 2023 6
Office of Audit – Significant Audits and Other Products
Gulf Coast Ecosystem Restoration Council’s Financial Statements
The audit of the Gulf Coast Ecosystem Restoration Council’s (Council) financial
statements is also required by the Chief Financial Officers Act of 1990, as amended
by the Accountability of Tax Dollars Act of 2002. RMA Associates, LLC (RMA), a
certified independent public accounting firm working under a contract with and
supervised by our office, issued an unmodified opinion on the Council’s fiscal years
2022 and 2021 financial statements. RMA did not identify any matters involving
internal control and its operation that are considered material weaknesses.
Additionally, RMA did not identify any instances of reportable noncompliance with
laws, regulations, contracts, and grant agreements tested. (OIG-23-008)
Attestation Engagements
Independent certified public accounting firm, KPMG, under a contract monitored 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 Fiscal Service
KPMG examined general computer and investment/redemption processing
controls used for processing various Federal agencies’ transactions by Fiscal
Service’s Federal Investments and Borrowings Branch, and general computer
and trust funds management processing controls used for processing various
Federal and State agencies’ transactions by the Fiscal Service’s Funds
Management Branch for the period beginning August 1, 2021, and ending
July 31, 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-23-001, OIG-23-002)
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 2022 consolidated financial statements.
Treasury Office of Inspector General Semiannual Report—March 2023 7
Office of Audit – Significant Audits and Other Products
Type of
Condition noncompliance
Treasury continues to have deficiencies in IRS financial management systems. Federal financial
Specifically, IRS did not consistently design, implement, and operate information system management system
controls and security programs over its financial management systems in accordance requirements
with the Federal financial management systems 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
management and Federal debt information systems in accordance with the Federal
financial management systems 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 2023
consolidated financial statements.
Treasury Office of Inspector General Semiannual Report—March 2023 8
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, Treasury was to provide
$32 billion in financial assistance to passenger air carriers, cargo air carriers, and
certain contractors to be used exclusively 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.
Wings Air Helicopters, LLC.
S&R determined that the passenger air carrier, Wings Air Helicopters, LLC.
(Wings Air Helicopters), reported correct information for three of the four
sections reviewed on its PSP1 Application. These sections are: (1) Applicant
Information, (2) Applicant Type, and (3) Certification. S&R also determined that
the air carrier incorrectly reported information in the awardable amounts section,
resulting in an 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.
Treasury Office of Inspector General Semiannual Report—March 2023 9
Office of Audit – Significant Audits and Other Products
Applying this formula, Wings Air Helicopters received an overpayment from
Treasury.
S&R recommended the Treasury’s Chief Recovery Officer (1) seek
reimbursement of the overpayment of PSP1 financial assistance; and (2) review
Wings Air Helicopters’ 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
recommendation. (OIG-23-023, Redacted)
Corvus Airlines, Inc.
S&R determined that the passenger air carrier, Corvus Airlines, Inc. (Corvus
Airlines), reported correct information for each of the sections reviewed on its
PSP1 Application, and in its Permitted Withdrawal Certification reporting to
Treasury in accordance with the Pledge Agreement.3 Corvus Airlines incurred
higher eligible compensation in accordance with the Pledge Agreement than the
amount awarded by Treasury. As such, Corvus Airlines did not over-request
PSP1 financial assistance. (OIG-23-021, Redacted)
Empire Airlines, Inc.
S&R determined that the cargo air carrier, Empire Airlines Inc. (Empire Airlines),
reported correct information for each of the four sections reviewed on their
PSP1 Application to Treasury. Although, Empire Airlines included unallowable
corporate officer compensation, the total actual compensation incurred between
April 1, 2019, and September 30, 2019, exceeded the amount certified to
Treasury. As a result, Empire Airlines did not over-request PSP1 financial
assistance. (OIG-23-022, Redacted)
CARES Act Compliance Monitoring
The CARES Act assigned us 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
3
Corvus Airlines filed for Chapter 11 bankruptcy on April 5, 2020, two days after the submission of
the PSP1 Application and was later purchased by new ownership via stock acquisition and continued
operations under the same company name. Treasury formally agreed to terms with Corvus Airlines’
new ownership on October 16, 2020, in the form of a “Pledge Agreement” to further protect
Treasury’s financial interests in use of PSP1 funds. The Awardable Amounts section was superseded
by Corvus Airlines’ Permitted Withdrawal Certification reporting requirements stemming from the
company sale.
Treasury Office of Inspector General Semiannual Report—March 2023 10
Office of Audit – Significant Audits and Other Products
management system under U.S. Department of Health and Human Services, for CRF
recipients to report expenditures quarterly. To date, CRF data has been collected up to
and through December 31, 2022. This data is displayed on the Pandemic Response
Accountability Committee’s website (https://www.pandemicoversight.gov/).
During this semiannual reporting period, as part of our compliance monitoring of CRF
payments, Castro & Company, LLC (Castro), a certified independent public accounting
firm, working under a contract with and supervised by our office, performed the
following activities and outreach efforts for CRF recipients.
Desk Review of Fort McDermitt Paiute-Shoshone Tribe’s Use of
Coronavirus Relief Fund Proceeds
Castro found that Fort McDermitt Paiute-Shoshone Tribe personnel were late in
filing or did not file the required quarterly grant reports by the required
submission date. In addition, there were instances in which supporting
documentation provided to Castro for expenditures did not agree with amounts
reported in the quarterly reports. Castro also found the transactions selected for
detail review were adequately supported by documentation in accordance with
the CARES Act and Treasury Guidance. Castro determined that the risk of
unallowable use of funds was moderate.
Castro did not recommend Treasury OIG perform an audit of the Fort McDermitt
Paiute-Shoshone Tribe. However, Castro recommended Treasury OIG follow up
with the tribe to ensure unrecorded transactions are reported in future cycles.
(OIG-CA-23-011)
Desk Review of the State of New York’s Use of Coronavirus Relief
Fund Proceeds
Castro found that the State of New York’s (NY) Aggregate Payments to
Individuals (API) were not in compliance with the CARES Act and Treasury’s
guidance because the NY Department of Corrections and Community
Supervision inadvertently used CRF to pay ineligible payroll costs associated
with back pay resulting from a suspension for a period not covered by CRF. NY
self-identified this issue and implemented a corrective action plan, which
resulted in NY identifying employees who were suspended during the ineligible
period, removing all associated payroll costs transferred to the CRF, and
implementing internal controls to ensure that any payroll expenses associated
with an employee who was suspended during the ineligible time period were not
transferred to the CRF moving forward. NY provided evidence of the reversal in
Treasury Office of Inspector General Semiannual Report—March 2023 11
Office of Audit – Significant Audits and Other Products
Cycle 74 of $22,029,825.19 payroll and fringe benefit costs associated with
this issue.
Except for NY’s API, Castro did not identify reporting issues or variances and
found the transactions selected for detailed review were supported by
documentation in accordance with the CARES Act and Treasury’s guidance.
Castro determined that NY’s risk of unallowable use of CRF was low and did
not recommend Treasury OIG perform an audit of the State of NY.
(OIG-CA-23-013)
Desk Review of the Town of Hempstead (New York) Use of
Coronavirus Relief Fund Proceeds
Castro found the Town of Hempstead did not have reporting issues or variances
and found the transactions selected for detailed review were supported by
documentation in accordance with the CARES Act and Treasury’s guidance.
Castro determined that the Town of Hempstead’s risk of unallowable use of
CRF was low. Castro did not recommend Treasury OIG perform an audit of the
Town of Hempstead. (OIG-CA-23-006)
Desk Review of Broward County Florida’s Use of Coronavirus Relief
Fund Proceeds
Castro found Broward County did not have reporting issues or variances and
found the transactions selected for detailed review were supported by
documentation in accordance with the CARES Act and Treasury’s guidance.
Castro determined that Broward County’s risk of unallowable use of CRF was
low. Castro did not recommend Treasury OIG perform an audit of Broward
County. (OIG-CA-23-010)
CARES Act oversight reports and, CRF guidance, are available on the Treasury
OIG CARES Act web page: https://oig.treasury.gov/cares-act
4
Calendar quarter ending December 31, 2021.
Treasury Office of Inspector General Semiannual Report—March 2023 12
Office of Audit – Significant Audits and Other Products
Other Product
Inquiry into Allegations of Racially Disparate Treatment of U.S. Mint
Employees
We performed an inquiry in response to a request from then-Secretary of the
Treasury, Steven Mnuchin, regarding a complaint received from six African
American U.S. Mint (Mint) employees5. The complainants alleged a pattern of
“rampant racism,” an “oppressive environment,” and “systematic racism”
against African American employees at the Mint. The OIG initiated a review of
workforce diversity and personnel practices at the Mint to determine whether:
(1) There are patterns or practices of racial discrimination, including but not
limited to, intimidation or disproportionate and meritless investigatory actions;
and (2) The quality of the Equal Employment Opportunity (EEO) and other
complaint processes are satisfactory.
We found that the quality of the Mint’s EEO program is generally satisfactory;
however, there are opportunities to improve certain aspects of how anti-
harassment program complaint data (including inquiry information such as
Management Inquiries and Administrative Investigations) are tracked and
analyzed. In addition, the Mint’s outdated policies for how complaints are
investigated create confusion among employees and potential risk for the
agency.
Due to the scope of our review and challenges with access to complete and
reliable data, we were neither able to substantiate nor unsubstantiate whether
there are patterns or practices of racial discrimination; however, we made
several key observations using available workforce and formal EEO complaint
statistics.
Our review of workforce statistics showed that the percentage of Black or
African American General Schedule (GS) workforce at the Mint among the
higher grades was higher than the overall percentage of the Black or African
American GS workforce for the rest of Treasury; however, among the Non-GS
workforce at the Mint, we observed that the percentage of Black or African
American employees in higher grade positions was appreciably lower when
compared to the overall percentage of Black or African American employees in
the Non-GS workforce for the rest of Treasury.
Our review of formal EEO complaints over a 5-year period from fiscal year 2017
through fiscal year 2021 found a higher percentage of complaints filed with
5
US Mint employees will be referred to as complainants.
Treasury Office of Inspector General Semiannual Report—March 2023 13
Office of Audit – Significant Audits and Other Products
alleged discrimination on the basis of race, Black or African American, at the
Mint when compared to the rest of Treasury, and complaints on this basis are
increasing at a higher rate at the Mint. In addition, we observed that reprisal
claims at the Mint were filed by Black or African American employees more
often than by employees of all other races combined.
While we were unable to identify a definitive root cause for these observations,
we believe that a number of the recent actions taken by the Mint management
are steps in the right direction, and we recommend that the Mint management
continues proactively addressing the findings from the TI Verbatim Consulting
(TIVC) Culture Assessment as well as the Treasury Office of Civil Rights and
Diversity (OCRD) audit and Federal Mediation and Conciliation Service (FMCS)
conflict assessment. We plan to follow up on the Mint’s progress in
implementing corrective actions in response to our recommendations as well as
the reports issued by TIVC, OCRD, and FMCS. We will work with the Mint
management on the timing of our follow-up review. (OIG-CA-23-003)
Treasury Office of Inspector General Semiannual Report—March 2023 14
Office of Investigations – Significant Investigations
CARES Act Investigations
Allegations Against Major Airline Regarding Use of CARES Act Payroll
Support Program Funds Unsubstantiated
On September 21, 2022, the OIG completed its report of investigation for a case
initiated upon notification that an airline allegedly failed to comply with the mandatory
recall provisions contained in the Payroll Support Program (PSP) extension agreement.
The investigation determined that the employees volunteered to take lower paying jobs
without coercion by the airline.
Other Significant Investigations
Two Defendants Convicted of Fraud Against the American Recovery and
Reinvestment Act (ARRA)
On December 19, 2022, the Office of Inspector General (OIG) completed its report of
investigation for a case initiated upon receipt of information from a Treasury
representative that two individuals in Massachusetts may have filed false claims to the
Treasury and fraudulently obtained funds under section 1603 of the American
Recovery and Reinvestment Act (ARRA). The defendants were responsible for a
scheme to defraud Treasury of more than $50 million in tax free energy grants for
wind farms and gasification systems that convert trash into electricity. The defendants
claimed costs on properties that did not exist and inflated costs on other properties.
One defendant pled guilty to one count of Attempting to Interfere with Administration
of Internal Revenue laws, was sentenced time served, 12 months’ probation and a
$100 special assessment. The second defendant was convicted of three counts of
Wire Fraud and one count of Conspiracy to Defraud the United States after a jury trial
and was sentenced to 84 months’ prison, thirty-six months’ probation, restitution of
$8.7 million, and a $400 special assessment. The case was investigated jointly with
the Internal Revenue Service, Criminal Investigation. The U.S. Attorney’s Office
(USAO) for the District of Massachusetts prosecuted the case.
Pay.gov Fraud Identified and Prevented
On October 7, 2022, the OIG completed its report of investigation for a case initiated
upon receipt of information from the Bureau of Fiscal Service (BFS) that an individual
Treasury Office of Inspector General Semiannual Report—March 2023 15
Office of Investigations – Significant Investigations
attempted $304 million in fraud through 25 fraudulent transactions submitted to the
Pay.gov system. BFS identified the fraud and prevented loss to the government. The
investigation determined that the subject suffers from psychological issues. Criminal
prosecution was presented and declined by the USAO, Northern District of Texas.
Prosecution Declined for Suspected Money Laundering Subject
On January 24, 2023, the OIG completed its report of investigation initiated upon
receipt of information from the Bureau of Engraving and Printing, Mutilated Currency
Division (MCD), reporting suspected money laundering through the MCD. The OIG
conducted interviews and document reviews, revealing the subject was operating as a
Money Service Business (MSB), but was not registered as an MSB with the Financial
Crimes Enforcement Network. In addition, the investigation determined the subject
transported damaged/mutilated currency into the United States (U.S.) and deposited
approximately $3 million in currency into U.S. bank accounts since 2020. Criminal
prosecution of this matter was presented and declined by the USAO for the Southern
District of Texas.
Allegations of ERA Program Fraud Substantiated
On November 1, 2022, the OIG completed its report of investigation for a case
initiated upon information from the King County Department of Community and Human
Services, concerning ERA program fraud. The investigation determined that an
individual received $61,000 in ERA funds as a landlord but was not the owner of
properties reported. Criminal prosecution was presented and declined by the USAO for
the Western District of Washington.
Landlord Committed Fraud Against Minnesota ERA Program
On March 7, 2023, the OIG completed its report of investigation for a case initiated
upon notification that a Minnesota (MN) landlord submitted ERA Program applications
to MN Housing, without authorization. Several of the tenants were interviewed and
stated they applied for the program or granted the landlord permission to apply. Two
tenants denied authorization for the landlord to apply on their behalf, resulting in
$30,000 in fraudulent payments to the landlord. Criminal prosecution was presented
and declined by the USAO for the District of MN. Additionally, the case was presented
and declined by the Ramsey County Attorney’s Office, St. Paul, MN. MN Housing
indicated that they would attempt to recoup the funds.
Treasury Office of Inspector General Semiannual Report—March 2023 16
Office of Investigations – Significant Investigations
Substantiated ERA fraud involving Bering Strait Region Housing Authority
On October 18, 2022, the OIG completed its report of investigation for a case initiated
upon receipt of information regarding ERA program fraud within the Bering Strait
Region, alleging favoritism and corruption. The investigation determined that the
individuals did manipulate the application and approval process for friends and family,
resulting in the fraudulent distribution of ERA funds, however, the loss did not meet
Federal prosecutorial thresholds, and the employees resigned. Criminal prosecution
was presented and declined by the USAO for the District of Alaska.
ERA and Paycheck Protection Program Fraud
On December 14, 2022, the OIG completed its report of investigation for a case
initiated upon information from the Social Security Administration OIG concerning ERA
program fraud associated with the Kansas Eviction Protection Program. The OIG
investigation determined that an individual received $15,000 in ERA funds as a
landlord, but was not the owner of the properties. Additionally, the investigation
revealed the individual received two Paycheck Protection Program payments for
businesses which did not exist. Criminal prosecution of the individual was presented
and declined by the USAO for the District of Kansas.
Investigation of Bank Fraud and Identity Theft in North Carolina
On October 11, 2022, the final subject in a joint OIG and Fayetteville, North Carolina
(NC) Police Department investigation was sentenced. Eleven subjects conspired to
defraud financial institutions by depositing forged, counterfeit, or stolen checks using
stolen identities as part of an elaborate bank fraud scheme.
The subjects were convicted and sentenced to a total of 552 months in prison, 852
months’ of probation, and $600,000 in restitution. The case was prosecuted by the
USAO for the Eastern District of NC.
Theft of Retirement Benefits
On November 20, 2022, the OIG completed its report of investigation for a case
initiated upon notification that a deceased employee’s relative was fraudulently
collecting retirement benefits from the Office of DC Pensions. The investigation
determined that the annuitant died in 2001, and the annuitant’s relative continued to
receive $482,000 in benefits through a joint bank account until 2019, when a status
verification was performed by the Office of DC Pensions. Criminal prosecution of the
subject was presented and declined by the USAO for the District of Maryland. A report
Treasury Office of Inspector General Semiannual Report—March 2023 17
Office of Investigations – Significant Investigations
was provided to the Office of DC Pensions and Departmental Offices for their
information, with recommendations to prevent unauthorized receipt of annuitant
pension funds.
Alaskan Tribes Receive Duplicate American Rescue Plan Act (ARP)
Payments for Joint Tribe
On November 4, 2022, the OIG completed its report of investigation for a case
initiated upon receipt of information that two Alaskan tribes had applied for and were
awarded American Rescue Plan Act (ARP) funding on behalf of their individual tribes
and additionally applied for ARP funding using a federally recognized joint tribe. The
investigation determined that each tribe voted individually to apply for the funding and
no outside influence was a factor in the application process. Due to the uniqueness of
tribal laws, the investigation was presented to the USAO, District of Alaska for
review. The USAO could find no violation of law concerning the funding and declined
prosecution. Additionally, the tribes were unable to coordinate a joint budget regarding
the use of the joint tribe funding and have since decided to return the ARP funding for
the joint tribe to the Treasury.
Workers’ Compensation Fraud by U.S. Mint Employee
On December 1, 2022, the OIG completed its report of investigation for a case
initiated upon notification that a U.S. Mint (USM) employee filed for, and received,
worker’s compensation benefits for a back injury incurred in 2020, while working at
the USM despite telling two other USM employees the injury was sustained outside of
work. Notwithstanding whether the employee may have injured, or re-injured their
back at the USM, the employee did not disclose the prior injury in a certified statement
to the Office of Workers’ Compensation Program. Furthermore, the employee later
acted to conceal the previous injury by asking at least one of the two USM employees
to not tell anyone about the previous injury. Criminal prosecution of the employee was
presented to and declined by the USAO for the District of Colorado.
Allegations of Coronavirus Aid, Relief, and Economic Security (CARES)
Act Funds Misuse Against Former Mayor Unsubstantiated
On December 15, 2022, the OIG completed its report of investigation for a case
initiated upon receipt of multiple allegations of misuse of Coronavirus Aid, Relief, and
Economic Security (CARES) Act relating to Anchorage and/or surrounding areas in
Alaska. The joint investigation with the Federal Bureau of Investigation determined
Treasury Office of Inspector General Semiannual Report—March 2023 18
Office of Investigations – Significant Investigations
there was insufficient evidence to support prosecution. Criminal prosecution was
presented to and declined by the USAO, District of Alaska.
Following is information related to significant investigative activities from prior
semiannual periods.
Subject Sentenced for Access Device Fraud Using Stolen Credit Cards
As reported in previous semiannual periods, our investigation of an organized criminal
group using stolen credit cards issued by Treasury-regulated financial institutions to
purchase $400,000 in gift cards from stores, identified five subjects for prosecution.
One subject pled guilty in U.S. District Court, District of Maryland, to Access Device
Fraud for using stolen credit cards to purchase gift cards.
One subject, a former grocery store employee, was sentenced to 24 months of
probation, a $100 special assessment, and ordered to pay $12,000 in restitution. To
date, two additional subjects have been indicted.
Update: On November 1, 2022, the OIG completed its report of investigation for a
case involving access device fraud in a joint Treasury OIG and U.S. Postal Inspection
Service investigation. Of the five subjects identified for prosecution three were
sentenced and two were declined for prosecution. The last two subjects were
criminally charged and pled guilty to conspiring to use stolen credit cards in order to
facilitate the purchase of approximately $400,000 in commercial gift cards. The final
two subjects sentenced to a total of 22 months home detention, 72 months of
probation, and $364,000 in restitution. The USAO for the District of Maryland,
Greenbelt Division, prosecuted the case.
Congressional Inquiry
On February 20, 2023, the OIG completed its report of investigation for a case
initiated upon receipt of a Congressional referral from the Office of U.S. Senator John
Boozman from Arkansas received through the Financial Crimes Enforcement Network
(FinCEN). The allegation revealed that a constituent of the Senator reported losing an
estimated $300,000 as part of an advance-fee scam, involving the impersonation of a
Treasury Official. The investigation determined the victim made payments to an
unknown subject between 20l8 to 2022, to purportedly release a $10 million
inheritance. One unwitting “money mule” was identified in the U.S., but all the funds
were transferred to unknown subjects in Kampala, Uganda. The case was presented
and declined by the U.S. Attorney’s Office for the District of Arkansas.
Treasury Office of Inspector General Semiannual Report—March 2023 19
Treasury OIG Accomplishments and Activities
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, is the Chair of the Council of
the Inspectors General on Integrity and Efficiency’s (CIGIE) Federal Audit Executive
Council.
Cecilia Howland, Acting Deputy Assistant Inspector General for Cyber and Financial
Assistance Audits, is the National Single Audit Coordinator for Treasury.
Treasury Office of Inspector General Semiannual Report—March 2023 20
Statistical Summary
Summary of Treasury OIG Activities
October 1, 2022, through March 31, 2023
Number or
OIG Activity Dollar Value
Office of Counsel Activities
Regulation and legislation reviews 22
Instances where information was refused 0
Office of Audit Activities
Reports issued and other products 35
Disputed audit recommendations 0
Significant revised management decisions 0
Management decision in which the Inspector General disagrees 0
Monetary benefits (audit)
Questioned costs $28,152
Funds put to better use $0
Total monetary benefits $28,152
Office of Investigations Activities*
Criminal and judicial actions (including joint investigations)
Investigative reports issued 88
Cases referred for prosecution and/or litigation 43
Individuals referred for criminal prosecution to the Department of Justice 47
Individuals referred for criminal prosecution to state and local authorities 7
Cases accepted for prosecution and/or litigation 5
Arrests 0
Indictments/informations 3
Convictions (by trial and plea) 12
*During the reporting period, subjects were sentenced to 495 months of prison time, 492 months of
probation, and ordered to pay fines, restitution, and court fees in the amount of $10,354,041.03, and
seizures and forfeitures in the amount of $38,180.86.
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—March 2023 21
Statistical Summary
Reports with Unimplemented Recommendations
Issued prior to October 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 Operations, and Revived Economies of the Gulf
Coast States Act of 2012 (RESTORE Act) 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 of U.S. Department of Homeland Security, U.S.
Customs and Border Protection’s (CBP) programs and activities related to protecting
revenue.
Treasury OIG is reporting 169 open and unimplemented recommendations for
35 reports issued prior to October 1, 2022, with $1,156,093 in potential monetary
benefits.
Treasury OIG considers all unimplemented recommendations for reports issued over
six months to be significant.
Treasury Programs and Operations
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
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
Treasury Office of Inspector General Semiannual Report—March 2023 22
Statistical Summary
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’ (OIA) 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 OIA 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. Management agreed with the recommendation.
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. U.S. Mint (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—March 2023 23
Statistical Summary
2. 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. Bureau of the Fiscal Service (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
privileges of the operating system (whether purchased from software vendors or
Treasury Office of Inspector General Semiannual Report—March 2023 24
Statistical Summary
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.
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
Treasury Office of Inspector General Semiannual Report—March 2023 25
Statistical Summary
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.
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
Treasury Office of Inspector General Semiannual Report—March 2023 26
Statistical Summary
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
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
Treasury Office of Inspector General Semiannual Report—March 2023 27
Statistical Summary
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
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
Treasury Office of Inspector General Semiannual Report—March 2023 28
Statistical Summary
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-20-040 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, should:
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.
Treasury Office of Inspector General Semiannual Report—March 2023 29
Statistical Summary
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 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.
2. 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.
3. 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
Year Issued
2021 OIG-21-013 FINANCIAL MANAGEMENT: Audit of the Office 12/20
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
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 Date
Year Issued
2021 OIG-21-020 FINANCIAL MANAGEMENT: Management Letter 12/20
for the Audit of the Department of the
Treasury's Financial Statements for Fiscal Years
2020 and 2019
1. Departmental Offices (DO) Information Technology (IT) management should ensure
that the configured schedule/frequency of Financial Analysis and Reporting System
Treasury Office of Inspector General Semiannual Report—March 2023 30
Statistical Summary
(FARS) backups is implemented in accordance with the minimum backup
frequency required by DO and Treasury policy.
2. Ensure that system-generated logs of backups, including failures, are retained for
the examination period and can be provided upon request.
3. Assist management in mitigating the risk of potential noncompliance with the
Federal Managers Financial Integrity Act if (1) results of testing were not
documented or (2) were not consistently tested by the components, management
should enforce guidance on how to improve A-123 documentation and
implementation of internal controls. Additionally, management should perform a
more detailed review of the sufficiency of the component submissions, follow up
with all inconsistencies, and have documentation readily available to substantiate
the conclusion that was reached. Management agreed with the recommendations.
Treasury Office of Inspector General Semiannual Report—March 2023 31
Statistical Summary
Fiscal Report Number Report Title Date
Year Issued
2021 OIG-21-021 FINANCIAL MANAGEMENT: Management 02/21
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.
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.
Treasury Office of Inspector General Semiannual Report—March 2023 32
Statistical Summary
Fiscal Report Number Report Title Date
Year Issued
2021 OIG-21-026 BILL AND COIN MANUFACTURING: Audit of 04/21
Physical Security at U.S. Mint Production
Facilities (Sensitive But Unclassified)
1-3. These recommendations are Sensitive But Unclassified. Management agreed with
the recommendations.
Fiscal Report Number Report Title Dates
Year Issued
2021 OIG-21-028 FINANCIAL MANAGEMENT: Audit of Treasury's 05/21
Compliance With the PIIA Requirements for Fiscal
Year 2020
1. Treasury’s Risk and Control Group (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
recommendation.
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-004 INFORMATION TECHNOLOGY: Department of the 10/21
Treasury Federal Information Security
Modernization Act Fiscal Year 2021 Performance
Audit for Collateral National Security Systems
(Sensitive But Unclassified)
1-5. These recommendations are Sensitive But Unclassified. Management agreed with
the recommendations.
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-005 CYBERSECURITY/INFORMATION TECHNOLOGY: 10/21
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2021
Performance Audit (Sensitive But Unclassified)
1-4. These recommendations are Sensitive But Unclassified. Management agreed with
the recommendations.
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-008 DATA ACT: Treasury Submitted Higher Quality 11/21
Non-IRS Data in its Fiscal Year 2020 Third
Quarter DATA Act Submission, However
Improvements are Still Needed
1. Treasury should continue working with the Treasury Executive Office for Asset
Forfeiture to ensure proper submission of Equitable Sharing financial assistance
awards on USAspending.gov. Management agreed with the recommendation.
Treasury Office of Inspector General Semiannual Report—March 2023 33
Statistical Summary
Fiscal Report Number Report Title Dates
Year Issued
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.
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
Year Issued
2022 OIG-22-014 FINANCIAL MANAGEMENT: Management Letter 12/21
for the Audit of the Department of the Treasury's
Consolidated Financial Statements for Fiscal Years
2021 and 2020
1. DO management should assist the Minority Lending Program 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 recommendation.
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-015 FINANCIAL MANAGEMENT: Audit of the Office of 12/21
D.C Pensions' Financial Statements for Fiscal
Years 2021 and 2020
1. Office of D.C. Pensions management should 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
Treasury Office of Inspector General Semiannual Report—March 2023 34
Statistical Summary
maintaining evidence of such review, investigation and resolution. Management
agreed with the recommendation.
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-027 DOMESTIC ASSISTANCE: Audit of Wisconsin 02/22
Housing and Economic Development Authority
New Markets Tax Credit Allocations
1. The Director of the Community Development Financial Institutions (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.
2. Update the memorandum of understanding with the IRS to incorporate improved
communication strategies for any completed Treas. Reg. §1.45D-1 compliance
reviews. Management agreed with the recommendations.
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-028 CORONAVIRUS DISEASE 2019 PANDEMIC 03/22
RELIEF PROGRAMS: Audit of 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
Year Issued
2022 OIG-22-031 RESOURCE MANAGEMENT: Audit of the 03/22
Department of the Treasury's Use of Cash
Discounts ($50,837 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. Maintains adequate controls on internal processes related to payment approvals.
3. The Commissioner of the Fiscal Service ensures that Contracting Officer
Representatives (COR) approve invoices with discounts timely.
4. Participates in required training, as necessary.
5. Distributes SOPs and/guidance relating to cash discounts to FinCEN's
management, staff, Contracting Officer's, and COR, including provide training, as
necessary.
Treasury Office of Inspector General Semiannual Report—March 2023 35
Statistical Summary
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. 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 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)
9. Maintains adequate controls on internal processes related to payment approvals.
10. Ensures that CORs approve invoices with discounts timely.
11. 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
Year Issued
2022 OIG-22-035 FINANCIAL MANAGEMENT: Audit of Treasury's 06/22
Compliance With the PIIA Requirements for Fiscal
Year 2021
1. Treasury's RCG work with management at the Fiscal Service, Exchange
Stabilization Fund, and Office of the Assistant Secretary for International Affairs to
complete proper review of the program-specific risk assessments to better ensure
management responses to risk assessment questions are accurate.
2. Treasury's RCG perform sufficient review of the annual Office of Management and
Budget (OMB) data call to ensure the information published on
paymentaccuracy.gov are complete and accurate. Management agreed with the
recommendations.
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-037 CYBERSECURITY/INFORMATION TECHNOLOGY: 09/22
Federal Information Security Modernization Act
Fiscal Year 2022 Performance Audit for the
Unclassified Systems (Sensitive But Unclassified)
1-4. These recommendations are Sensitive But Unclassified. Management agreed with
the recommendations.
Treasury Office of Inspector General Semiannual Report—March 2023 36
Statistical Summary
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-038 CYBERSECURITY/INFORMATION TECHNOLOGY: 09/22
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2022
Performance Audit for the Collateral National
Security Systems (Sensitive But Unclassified)
1-5. These recommendations are Sensitive But Unclassified. Management agreed with
the recommendations.
Fiscal Report Number Report Title Dates
Year Issued
2022 OIG-22-041 CORONAVIRUS DISEASE 2019 PANDEMIC 09/22
RELIEF PROGRAMS: Audit of Air Carrier Worker
Support Certifications - XOJET Aviation, LLC
REDACTED ($172,218 Questioned Costs)
1. The Chief Recovery Officer should seek reimbursement of the $172,218
overpayment of Payroll Support Program, CARES Act (PSP1) financial assistance.
($172,218 Questioned Costs)
2. Review XOJET's requested amount for unallowable expenses under Payroll
Support Program Extension, Consolidated Appropriations Act, 2021 (PSP2) and
Payroll Support Program 3, American Rescue Plan Act of 2021 (PSP3), and seek
reimbursement for the overpayment, if applicable. Management agreed with the
recommendations.
Fiscal Report Number Report Title Dates
Year Issue
2022 OIG-22-042 CORONAVIRUS DISEASE 2019 PANDEMIC 09/22
RELIEF PROGRAMS: Audit of Air Carrier Worker
Support Certifications: Alpine Aviation, Inc.
REDACTED ($165,586 Questioned Costs)
1. The Chief Recovery Officer should seek reimbursement of the $165,586
overpayment of PSP1 financial assistance. ($165,586 Questioned Costs)
Management agreed with the recommendation.
Fiscal Report Number Report Title Dates
Year Issue
2022 OIG-22-043 CORONAVIRUS DISEASE 2019 PANDEMIC 09/22
RELIEF PROGRAMS: Audit of Air Carrier Worker
Support Certifications: Pegasus Elite Aviation, Inc.
REDACTED ($767,452 Questioned Costs)
1. The Chief Recovery Officer seek reimbursement of the $299,965 overpayment
related to averaging salary, wage, and benefit costs, which is inclusive of
corporate officer compensation. ($299,965, Questioned Costs)
Treasury Office of Inspector General Semiannual Report—March 2023 37
Statistical Summary
2. Review Pegasus' PSP2 and PSP3 certifications to determine if corporate officer
compensation was requested and seek reimbursement for the overpayment, if
applicable.
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.
($467,487 Questioned Cost)
4. The Chief Recovery Officer review Pegasus' PSP2 and PSP3 certifications to
determine if employer-side payroll tax was requested and seek reimbursement for
the overpayment, if applicable.
5. The Chief Recovery Officer review Pegasus' PSP2 and PSP3 certifications to
determine if per diem allowances were requested and seek reimbursement for the
overpayment, if applicable. Management agreed with the recommendations.
Other Federal Agencies
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-007 GULF COAST RESTORATION - DATA Act: 11/21
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
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. Management agreed
with the recommendation.
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,
Treasury Office of Inspector General Semiannual Report—March 2023 38
Statistical Summary
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 CBP officers on in-
bond compliance examinations and audits.
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.
Treasury Office of Inspector General Semiannual Report—March 2023 39
Statistical Summary
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.
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.
Fiscal Report Number Report Title Dates Issued
Year
2022 OIG-22-034 FINANCIAL MANAGEMENT: Audit of the 06/22
Gulf Coast Ecosystem Restoration
Council's Compliance with PIIA for Fiscal
Year 2021
1. Council 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 or its subsequent revisions to determine the required risk
assessment factors and methodology for its agency.
4. Include unknown payments in its improper payment risk assessment.
5. Adequately conclude whether its programs are likely to make improper payments
and unknown payments above or below the statutory threshold. Management
agreed with the recommendations.
Treasury Office of Inspector General Semiannual Report—March 2023 40
Statistical Summary
Closed Investigations of Senior Government Employees Not
Publicly Disclosed
October 1, 2022, through March 31, 2023
Treasury OIG closed 2 investigations involving senior Government employees during
the period that were not publicly disclosed. Of these investigations, 0 substantiated an
instance of misconduct against a senior Government employee and 2 were
unsubstantiated.
Case Number Allegation/Disposition
DO-22-0086-I On October 5, 2022, the OIG completed its report of
investigation for a case initiated upon notification that a
Departmental Office employee violated 31 CFR § 800.601(d)
pertaining to certain investments in the U.S. by foreign
persons, by failing to include another agency on material
communication(s) with the complainant of a matter involving
the Committee on Foreign Investment in the U.S. (CFIUS). The
OIG unsubstantiated the allegation because the matter
involving CFIUS was in a “mitigation phase” and did not fall
within the notification requirements of 31 CFR § 00.601(d)
which applies to CFIUS matters in a “covered transaction”
phase. This matter was not referred to the Department of
Justice.
Unsubstantiated
FinCEN-22-0079-I On October 7, 2022, the OIG completed its report of
investigation for a case initiated based on an allegation of
conflict of interest involving a senior level official at the
Financial Crime Enforcement Network (FinCEN) and their
previous employment with a private company. The OIG
unsubstantiated the allegation based on interviews, review of
records, and reviews conducted by FinCEN's Counsel and the
Office of General Counsel for Treasury's Departmental Offices
(OGC-DO). A review of all pertinent information was also
conducted by the OIG Office of Counsel, and no violations
Treasury Office of Inspector General Semiannual Report—March 2023 41
Statistical Summary
were identified. This matter was not referred to the Department
of Justice.
Unsubstantiated
Summary of Instances of Whistleblower Retaliation
October 1, 2022, through March 31, 2023
There were no new cases of whistleblower retaliation opened during this reporting
period. No records or other information, and no instances where information or
assistance request was refused during this reporting period.
Summary of Attempts to Interfere With Treasury OIG
Independence, Including Instances Where Information or
Assistance Request was Refused
October 1, 2022, through March 31, 2023
There were no attempts made 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.
Treasury Office of Inspector General Semiannual Report—March 2023 42
Statistical Summary
Listing of Audit Products Issued
October 1, 2022, through March 31, 2023
Office of Audit
Letter to the Honorable Michael Regan, Administrator, Environmental Protection
Agency and Chairperson, Gulf Coast Ecosystem Restoration Council: 2023
Management and Performance Challenges (OIG-CA-23-001, 10/12/2022)
Management and Performance Challenges Facing the Department of the Treasury FY
2023 (OIG-CA-23-002, 10/14/2022)
Inquiry into Allegations of Racially Disparate Treatment of U.S. Mint Employees
(OIG- CA-23-003, 10/17/2022)
FINANCIAL MANAGEMENT: Report on the Bureau of the Fiscal Service’s Description
of its Investment and Redemption Shared Services System and the Suitability of the
Design and Operating Effectiveness of its Controls for the Period August 1, 2021 to
July 31, 2022 (OIG-23-001, 10/25/2022)
FINANCIAL MANAGEMENT: Report on the Bureau of the Fiscal Service’s Description
of its Trust Funds Management Shared Services System and the Suitability of the
Design and Operating Effectiveness of its Controls for the Period August 1, 2021 to
July 31, 2022 (OIG-23-002, 10/25/2022)
FINANCIAL MANAGEMENT: Audit of the United States Mint’s Schedules of Custodial
Deep Storage Gold and Silver Reserves as of September 30, 2022 and 2021
(OIG-23-003, 10/26/2022)
FINANCIAL MANAGEMENT: Audit of the Department of the Treasury's Schedule of
United States Gold Reserves Held by Federal Reserve Banks as of September 30,
2022 and 2021 (OIG-23-004, 10/28/2022)
FINANCIAL MANAGEMENT: Audit of the Federal Financing Bank’s Financial
Statements for Fiscal Years 2022 and 2021 (OIG-23-005, 11/14/2022)
FINANCIAL MANAGEMENT: Audit of the Community Development Financial
Institutions Fund's Financial Statements for Fiscal Years 2022 and 2021 (OIG-23-006,
11/14/2022)
Treasury Office of Inspector General Semiannual Report—March 2023 43
Statistical Summary
FINANCIAL MANAGEMENT: Audit of the Department of the Treasury’s Consolidated
Financial Statements for Fiscal Years 2022 and 2021 (OIG-23-007, 11/15/2022)
FINANCIAL MANAGEMENT: Audit of the Gulf Coast Ecosystem Restoration Council’s
Financial Statements for Fiscal Years 2022 and 2021 (OIG-23-008, 11/15/2022)
Overseas Contingency Operations - Summary of Work Performed by the Department
of the Treasury Related to Terrorist Financing and Anti-Money Laundering for Fourth
Quarter Fiscal Year 2022 (OIG-CA-23-005, 11/16/2022)
FINANCIAL MANAGEMENT: Management Letter for the Audit of the Department of
the Treasury’s Consolidated Financial Statements for Fiscal Years 2022 and 2021
(OIG-23-009, 12/06/22)
FINANCIAL MANAGEMENT: Audit of the United States Mint's Financial Statements
for Fiscal Years 2022 and 2021 (OIG-23-010, 12/07/2022)
FINANCIAL MANAGEMENT: Management Letter for the Audit of the United States
Mint's Financial Statements for Fiscal Years 2022 and 2021 (OIG-23-011,
12/07/2022)
FINANCIAL MANAGEMENT: Audit of the Office of D.C. Pensions’ Financial
Statements for Fiscal Years 2022 and 2021 (OIG-23-012, 12/14/2022)
FINANCIAL MANAGEMENT: Audit of the Department of the Treasury Forfeiture Fund’s
Financial Statements for Fiscal Years 2022 and 2021 (OIG-23-013, 12/15/2022)
FINANCIAL MANAGEMENT: Audit of the Bureau of Engraving and Printing's Financial
Statements for Fiscal Years 2022 and 2021 (OIG-23-014, 12/16/2022)
FINANCIAL MANAGEMENT: Management Letter for the Audit of the Bureau of
Engraving and Printing's Financial Statements for Fiscal Years 2022 and 2021
(OIG-23-015, 12/16/2022)
FINANCIAL MANAGEMENT: Audit of the Alcohol and Tobacco Tax and Trade Bureau's
Financial Statements for Fiscal Years 2022 and 2021 (OIG-23-016, 12/19/2022)
FINANCIAL MANAGEMENT: Audit of the Office of the Comptroller of the Currency's
Financial Statements for Fiscal Years 2022 and 2021 (OIG-23-017, 12/21/2022)
FINANCIAL MANAGEMENT: Management Letter for the Audit of the Office of the
Comptroller of the Currency's Financial Statements for Fiscal Years 2022 and 2021
(OIG-23-018, 12/21/2022)
Treasury Office of Inspector General Semiannual Report—March 2023 44
Statistical Summary
FINANCIAL MANAGEMENT: Management Report for the Audit of the Department of
the Treasury’s Consolidated Financial Statements for Fiscal Years 2022 and 2021
(OIG-23-019, 12/21/2022)
Town of Hempstead Uses of Coronavirus Relief Fund Payment (OIG-CA-23-006,
01/09/2023)
Annual Report on the Status of the Implementation of Purchase and Travel Card Audit
Recommendations (Treasury) Transmittal to OMB (OIG-CA-23-007, 01/23/2023)
Memorandum for the Honorable Richard K. Delmar, Treasury Deputy Inspector
General: Joint Purchase and Integrated Card Violation Report (April 1, 2022–
September 30, 2022) (OIG-CA-23-008, 01/20/2023) Internal Memorandum, Not
Publicly Disclosed
Treasury OIG (Gulf Coast) 2022 Annual Report on Status of Implementation of CC
Audit Recommendations Transmittal to OMB (OIG-CA-23-009, 01/24/2023)
FINANCIAL MANAGEMENT: Audit of the Exchange Stabilization Fund’s Financial
Statements for Fiscal Years 2022 and 2021 (OIG-23-020, 01/26/2023)
Desk Review of Broward County, FL Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-010, 01/31/2023)
Desk Review of the State of New York’s Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-013, 02/14/2023)
Overseas Contingency Operations - Summary of Work Performed by the Department
of the Treasury Related to Terrorist Financing and Anti-Money Laundering for First
Quarter Fiscal Year 2023 (OIG-CA-23-015, 02/14/2023)
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier
Worker Support Certifications - Corvus Airlines, Inc. (REDACTED) (OIG-23-021,
03/27/2023)
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier
Worker Support Certifications - Empire Airlines, Inc. (REDACTED) (OIG-23-022,
03/27/2023)
Desk Review of Fort McDermitt Paiute-Shoshone Tribe's Use of Coronavirus Relief
Fund Proceeds (OIG-CA-23-011, 03/28/2023)
Treasury Office of Inspector General Semiannual Report—March 2023 45
Statistical Summary
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air Carrier
Worker Support Certifications - Wings Air Helicopters, LLC (REDACTED) (OIG-23-023,
03/31/2023)
Treasury Office of Inspector General Semiannual Report—March 2023 46
Statistical Summary
Audit Reports Issued With Questioned Costs
October 1, 2022 through March 31, 2023
Total Total
Total No. Questioned Unsupported
Category of Reports Costs Costs
For which no management decision had been made by
the beginning of the reporting period 3 $1,105,256 $1,105,256
Which were issued during the reporting period 1 $28,152 $28,152
Subtotals 4 $1,133,408 $1,133,408
For which a management decision was made during the
reporting period 0 $0 $0
Dollar value of disallowed costs 0 $0 $0
Dollar value of costs not disallowed 0 $0 $0
For which no management decision was made by the
end of the reporting period 1 $28,152 $28,152
For which no management decision was made within 6
months of issuance 3 $1,105,256 $1,105,256
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.
Treasury Office of Inspector General Semiannual Report—March 2023 47
Statistical Summary
Audit Reports Issued With Recommendations that Funds Be Put
to Better Use
October 1, 2022 through March 31, 2023
Total
No. of Revenue
Category Reports Total Savings Enhancement
For which no management decision had been
made by beginning of reporting period 1 $66,686 $66,686 $0
Which were issued during the reporting
period 0 $0 $0 $0
Subtotals 1 $66,686 $66,686 $0
For which a management decision was made
during the reporting period 16 $15,849 $15,849 $0
Dollar value of recommendations agreed to
by management 1 $15,849 $15,849 $0
Dollar value based on proposed
management action 1 $15,849 $15,849 $0
Dollar value based on proposed
legislative action 0 $0 $0 $0
Dollar value of recommendations not
agreed to by management 0 $0 $0 $0
For which no management decision was
made by the end of the reporting period 1 $50,837 $50,837 $0
For which no management decision was
made within 6 months of issuance 1 $50,837 $50,837 $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.
6
There was a management decision on 1of 4 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—March 2023 48
Statistical Summary
Reports for Which No Management Comment was Returned
Within 60 Days
As of March 31, 2023
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 March 31, 2023
As of the end of this semiannual reporting period, Treasury management had not
decided on recommendations with monetary benefits for four reports:
RESOURCE MANAGEMENT: Audit of the Department of the Treasury’s Use of
Cash Discounts (OIG-22-031, 03/23/2022) $50,837 Funds Put to Better Use
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air
Carrier Worker Support Certifications Audit of Air Carrier Worker Support
Certifications - XOJET Aviation, LLC (REDACTED) (OIG-22-041, 09/28/2022)
$172,218 Questioned Costs
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air
Carrier Worker Support Certifications - Alpine Aviation, Inc. (REDACTED)
(OIG-22-042, 09/28/2022) $165,586 Questioned Costs
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF PROGRAMS: Audit of Air
Carrier Worker Support Certifications - Pegasus Elite Aviation, Inc. (REDACTED)
(OIG-22-043, 09/28/2022) $767,452 Questioned Costs
Significant Revised Management Decisions
October 1, 2022, through March 31, 2023
There were no significant revised management decisions during the reporting period.
Treasury Office of Inspector General Semiannual Report—March 2023 49
Statistical Summary
Significant Disagreed Management Decisions
October 1, 2022, through March 31, 2023
There were no significant disagreed management decisions during the reporting period.
Peer Reviews
October 1, 2022, through March 31, 2023
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
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 complete any peer reviews of other
Federal audit organizations during this reporting period.
Office of Investigations
Council of the Inspectors General on Integrity and Efficiency (CIGIE) mandates that the
investigative law enforcement operations of all OIGs undergo peer reviews every three
years to ensure compliance with (1) CIGIE’s investigations quality standards and
(2) the relevant guidelines established by the Office of the Attorney General of the
United States.
Treasury Office of Inspector General Semiannual Report—March 2023 50
Statistical Summary
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—March 2023 51
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 (OCC) with losses to the Federal Deposit Insurance
Corporation’s (FDIC) 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 Office of
Inspector General (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 FDIC 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.
There were no banks supervised by OCC that failed during this reporting period.
Overseas Contingency Operation Quarterly Summary Memorandums
to the Department of Defense OIG
During this reporting period, we issued two summary memorandums to the
Department of Defense OIG regarding information we obtained on the
Department of the Treasury’s (Treasury) activities with respect to tracking and
disrupting the Islamic State of Iraq and Syria and al-Qaeda's finances. The
memorandums included specific examples of activities to disrupt terrorist
financing, and information on Treasury programs that combat terrorist financing
Treasury Office of Inspector General Semiannual Report—March 2023 52
Other Reporting Requirements and Requests
related to Operation Inherent Resolve and Operation Enduring Sentinel.
(OIG- CA- 23-005, OIG-CA-23-015)
Annual Reports on the Status of Implementation of Purchase and
Travel Card Audit Recommendations
We provided annual reports on the progress made by Treasury and by 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” (M-13-21). Our office has not issued any charge card related audit
findings and recommendations to Treasury or the Council and did not have
anything to report for fiscal year 2022. (OIG-CA-23-007, OIG-CA-23-009)
Treasury Office of Inspector General Semiannual Report—March 2023 53
References to the Inspector General Act
Section Requirement Page
Section 404(a)(2) Review of legislation and regulations 21
Section 405(b)(1) Significant problems, abuses, and deficiencies 5-19
Section 405(b)(2) Recommendations with respect to significant problems, abuses, and 5-19
deficiencies
Section 405(b)(3) Significant unimplemented recommendations described in previous 22-40
semiannual reports
Section 405(b)(4) Matters referred to prosecutive authorities 21
Section 406(c)(2) Summary of instances where information was refused 42
Section 405(b)(6) List of audit reports 43-46
Section 405(b)(7) Summary of significant reports 5-19
Section 405(b)(8) Audit reports with questioned costs 47
Section 405(b)(9) Recommendations that funds be put to better use 48
Section 405(b)(8)(A) Summary of each audit, inspection, and evaluation report issued before the 22-40
beginning of the reporting period for which no management decision was
made
Section 405(b)(10)(B) Summary of each audit, inspection, and evaluation report issued for which 49
no management comment was returned within 60 days
Section 405(b)(10)(C) Summary of each audit, inspection, and evaluation report issued before the 49
beginning of the reporting period for which there are outstanding
unimplemented recommendations, including the aggregate potential cost
savings
Section 405(b)(11) Significant revised management decisions made during the reporting period 49
Section 405(b)(12) Management decisions with which the Inspector General is in disagreement 51
Section 405(b)(13) Instances of unresolved Federal Financial Management Improvement Act 8
noncompliance
Section 405(b)(14) Results of peer reviews conducted of Treasury OIG by another OIG 50-51
Section 405(b)(15) List of outstanding recommendations from peer reviews 50-51
Section 405(b)(16) List of peer reviews conducted by Treasury OIG, including a list of 50-51
outstanding recommendations from those peer reviews
Section 405(b)(17)(A- Statistics for the period related to the number of (A) investigative reports 21
D) 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 405(b)(18) Description of metrics used to develop investigative statistics in Section 21
405(b)(18)
Section 405(b)(19) Summary of each investigation involving a senior Government employee 40-41
where allegation of misconduct was substantiated
Section 405(b)(20) Instances of whistleblower retaliation 42
Section 405(b)(21) Summary of attempts to interfere with Treasury OIG independence 42
Section 405(b)(22)(A) Description of each inspection, evaluation, and audit that was closed and 43-46
not publicly disclosed
Section 405(b)(22)(B) Description of each investigation closed, involving a senior Government 40-41
employee, that was not publicly disclosed
Section 405(e) Serious or flagrant problems, abuses, or deficiencies N/A
Section 406(c)(2) Report to Secretary when information or assistance is unreasonably 42
refused
Treasury Office of Inspector General Semiannual Report—March 2023 54
Abbreviations
ACE Automated Commercial Environment
API Aggregate Payments to Individuals
ARP American Rescue Plan Act of 2021
ARRA American Recovery and Reinvestment Act
BEP Bureau of Engraving and Printing
CARES Act Coronavirus Aid, Relief, and Economic Security Act
Castro Castro & Company, LLC
CBP U.S. Customs and Border Protection
CDFI Community Development Financial Intuitions
CFIUS Committee on Foreign Investment in the United States
CIGFO Council of Inspectors General on Financial Oversight
CIGIE Council of the Inspectors General on Integrity and
Efficiency
Council Gulf Coast Ecosystem Restoration Council
COR Contracting Officer Representative
Corvus Airlines Corvus Airlines, Inc.
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
EEO Equal Employment Opportunity
Empire Airlines Empire Airlines Inc.
ERA Emergency Rental Assistance
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
GS General Schedule
IRS Internal Revenue Service
JFICS Judgment Fund Internet Claim System
KPMG KPMG LLP
MCD Mutilated Currency Division
Mint United States Mint
MN Minnesota
NY State of New York
Treasury Office of Inspector General Semiannual Report—March 2023 55
Abbreviations
NC North Carolina
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
PSP1 Payroll Support Program
PSP2 Support Program Extension
PSP3 Payroll Support Program 3
RESTORE Act Resources and Ecosystems Sustainability, Tourist
Opportunities, and Revived Economies of the Gulf Coast
States Act of 2012
RCG Risk and Control Group
RMA RMA Associates, LLC
SBLF Small Business Lending Fund
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
Treasury Department of the Treasury
TTO Trade Transformation Office
USAO U.S. Attorney’s Office
Wings Air Helicopters Wings Air Helicopters, LLC.
Treasury Office of Inspector General Semiannual Report—March 2023 56
Stairway 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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