Treasury Office of Inspector General Semiannual Report—March 2025 (Report to Congress)
Summary
The Treasury Office of Inspector General's Semiannual Report for March 2025 reports $2 billion in potential monetary benefits, 61 products from the Office of Audit, and 33 indictments and 14 convictions from Office of Investigations work. An independent public accounting firm reviewing Coronavirus Relief Fund proceeds identified $1.8 billion in total questioned costs, and Emergency Rental Assistance reviews found $435,658 in questioned costs. A joint investigation with the Federal Reserve Board OIG over a contractor's improper use of anonymized credit card information ended in a $37 million settlement. Deputy Inspector General Loren J. Sciurba's message notes the December 29, 2024 retirement of Acting Inspector General Richard Delmar.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Treasury Office of Inspector General Semiannual Report—March 2025 (Report to Congress).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/semiannual-report-to-congress-mar-2025-08d860be34/
, SHA-256 ebc8e4bd6e244fe0cf0854ab768f3934cc2c30c272f5bb1a16c512d888bdcd46.Full text
re
Highlights
During this semiannual reporting period, the Department of the Treasury (Treasury)
Office of Inspector General (OIG) identified $2 billion in potential monetary benefits. The
Office of Audit issued 61 products and work by the Office of Investigations resulted in 33
indictments and 14 convictions. Some of our more significant results for the period are
described below:
• A certified independent public accounting firm (IPA), working under a contract with
and supervised by our office, reviewed the receipt, disbursement, and use of
Coronavirus Relief Fund (CRF) proceeds by State and Local governments. In
addition to determining whether the State and Local governments complied with
the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT) and Treasury
guidance, the IPA also identified $1.8 billion in total questioned costs.
• Our Office of Audit reviewed complaints regarding the use of Emergency Rental
Assistance (ERA)1 and ERA2 funds. In addition to determining whether ERA
recipients complied with the use of ERA fund requirements, we also identified
$435,658 in total questioned costs based on our reviews and other information
received for the following State and Local governments:
o State of Washington
o Thurston County, Washington
o State of Alaska
o Harris County, Texas
• Our Office of Investigations completed a joint investigation with the Board of
Governors of the Federal Reserve System (Board) OIG. The investigation discovered
the contractor violated the Office of the Comptroller of the Currency (OCC) and
Federal Reserve Board (FRB) contract provisions by improperly using anonymized
credit card information. Our office achieved $37 million settlement with the U.S.
Department of Justice, Civil Division and the U.S. Attorney’s Office for the Eastern
District of Virginia.
• Additionally, our Office of Investigations conducted a joint investigation with the
Internal Revenue Service Criminal Investigations Division of seven subjects
conspiring to defraud the U.S. Treasury through illegal gambling and not reporting
the proceeds. The subjects were sentenced to a total of 36 years and 2 months
incarceration, 21 years probation, and over $15.5 million in fines and restitution
with an additional $1.46 million attained through forfeiture. The U.S. Attorney’s
Office for the Northern District of Ohio prosecuted the case.
Treasury Office of Inspector General Semiannual Report—March 2025 i
Message from the Inspector General
During this reporting period, the Department of the Treasury (Treasury) Office of
Inspector General (OIG) continued its in-depth oversight of the pandemic recovery
programs administered by Treasury. We issued a total of 61 products during the
reporting period, of which 29 were pandemic-related products.
As part of pandemic oversight, the Treasury OIG conducted desk reviews regarding
the receipt, disbursement, and use of Coronavirus Relief Fund (CRF) proceeds. These
reviews revealed that several states failed to comply with the Coronavirus Aid, Relief,
and Economic Security Act (CARES ACT) and Treasury’s guidance, leading to billions
of dollars in questioned costs due to unsupported expenditures. We also performed
desk reviews of the use of Emergency Rental Assistance (ERA)1 and 2 funds based on
several complaints received. We determined multiple states were in violation of ERA1
and ERA2 statutes.
Treasury OIG continues to investigate fraud, waste, and abuse of Treasury programs,
to include pandemic programs, employee misconduct, and various cyber-related
fraud. Treasury OIG participates in several law enforcement working groups and task
forces to investigate external fraud that affects Treasury. We also continue to provide
leadership and administrative support to the Council of Inspectors General on
Financial Oversight, 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, which is chaired by the Secretary of the
Treasury.
In this past reporting period, Acting Inspector General Richard Delmar retired. It was
an honor to work with him. While we will miss his leadership, the OIG’s audits and
investigations will progress without interruption. Amidst the current challenges,
Treasury’s programs and operations benefit immensely from the OIG’s unwavering
commitment to integrity and efficiency, made possible by the exceptional
professionalism and talent of our workforce. Their accomplishments speak volumes
about their dedication and hard work.
Loren J. Sciurba
Deputy Inspector General
Treasury Office of Inspector General Semiannual Report—March 2025 ii
Farewell To Acting Inspector General Delamar
The Department of the Treasury (Treasury) Office of
Inspector General (OIG) congratulates the Honorable Richard
Delmar on his December 29, 2024, retirement. Mr. Delmar
served the Treasury OIG since February 13, 2000, when he
became Counsel to the Inspector General. In that capacity,
he provided comprehensive legal services to the
investigative, audit, and management functions of Treasury
OIG, advising on audit standards, criminal law and
procedure, procurement law, personnel law, and other
statutes, regulations, and policies relevant to OIG operations
and Treasury programs. He became Deputy Inspector
General on April 17, 2019, and Acting Inspector General on
June 8, 2019. He served Treasury as Acting Inspector
General for 2 years and 10 months. Under his leadership, the
OIG has grown commensurate with the increasing duties
placed upon it, including, oversight of an additional $600 billion in federal program funding. He
led 223 investigators, auditors, program analysts, attorneys, and support professionals in the
oversight of Treasury programs and operations.
Earlier in his distinguished public service career, Mr. Delmar served on active duty in the Navy
Judge Advocate General Corps as well as the U.S. Navy Reserve. He subsequently contributed
his skills as a trial attorney in the Department of Justice Tax Division, and as a tax litigator and
criminal tax program manager with the Internal Revenue Service’s Office of Chief Counsel, where
he reviewed proposed criminal tax prosecutions and provided training to investigators and
attorneys on tax, money laundering, Bank Secrecy Act, and forfeiture law, in addition to
supervising attorney staff. His extensive experience has significantly enhanced the effectiveness
of Treasury’s oversight, compliance efforts, and provided invaluable benefit to the OIG enabling
him to serve as an expert as well as a mentor in a wide number of specialties. Through all his
endeavors, Mr. Delmar brought with him a true commitment to public service and ensured that
the agencies he served comport themselves with utmost integrity.
Mr. Delmar has demonstrated extraordinary leadership and commitment to the mission of the
OIG while serving as Acting Inspector General as well as both Deputy Inspector General and
Counsel. He led the expansion of professional staffing and development of audit and investigative
protocols to provide oversight of new pandemic-related fund disbursement programs, assuring
continuation of existing oversight responsibilities despite undertaking significantly expanded
oversight jurisdiction. He also supported the stand-up and operation of the Pandemic Response
Accountability Committee established by the Coronavirus Aid, Relief, and Economic Security Act
to bring together the Inspectors General of affected federal agencies. Mr. Delmar was awarded
the Treasury Medal by the former Secretary of the Treasury in recognition of his singular
accomplishments and leadership in the Treasury Department.
Treasury OIG thanks you, Mr. Delmar.
Treasury Office of Inspector General Semiannual Report—March 2025 iii
Contents
Contents
Highlights ....................................................................................................... i
Message from the Inspector General .......................................................... ii
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
Emergency Rental Assistance Oversight ............................................................................ 24
Cyber/Information Technology ............................................................................................ 26
Manufacturing and Revenue................................................................................................ 27
Office of Investigations – Significant Investigations ................................ 28
CARES Act Investigations .................................................................................................... 28
Other Significant Investigations.......................................................................................... 29
Treasury OIG Accomplishments and Activities ........................................ 32
Statistical Summary ................................................................................... 34
Summary of Treasury OIG Activities .................................................................................. 34
Metrics Used for Office of Investigations Activities........................................................... 34
Reports with Unimplemented Recommendations ............................................................ 35
Closed Investigations of Senior Government Employees Not Publicly Disclosed........... 57
No-Knock Entry Reporting ................................................................................................... 59
Summary of Instances of Whistleblower Retaliation ........................................................ 59
Summary of Attempts to Interfere With Treasury OIG Independence, Including
Instances Where Information or Assistance Request was Refused.................................. 60
Listing of Audit Products Issued ......................................................................................... 61
Audit Reports Issued With Questioned Costs .................................................................... 68
Audit Reports Issued With Recommendations that Funds Be Put to Better Use ............ 69
Reports for Which No Management Comment was Returned Within 60 Days ............... 70
Reports Issued Over 6 Months for Which No Management Decision Has Been Made ... 70
Treasury Office of Inspector General Semiannual Report—March 2025 iv
Contents
Significant Revised Management Decisions ...................................................................... 72
Significant Disagreed Management Decisions................................................................... 72
Peer Reviews ........................................................................................................................ 73
Other Reporting Requirements and Requests .......................................... 74
References to the Inspector General Act .................................................. 76
Abbreviations .............................................................................................. 78
Treasury Office of Inspector General Semiannual Report—March 2025 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 1978. 1
Treasury OIG is headed by an Inspector General appointed by the President with the
advice and consent of the Senate.
Treasury OIG performs independent, objective reviews of Treasury programs and
operations, except for those of the Internal Revenue Service (IRS), and keeps the
Secretary of the Treasury and Congress fully informed of problems, deficiencies, and
the need for corrective action. The Treasury Inspector General for Tax Administration
(TIGTA) and the Government Accountability Office (GAO) perform oversight related
to the IRS. 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). 2 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
(Science Program) administered by the National Oceanic and Atmospheric
Administration (NOAA). With regard to the Council and the Science Program,
Treasury OIG keeps the appointed Chairperson of the Council, the NOAA Science
Program Administrator, and Congress fully informed of problems, deficiencies, and
the need for corrective actions.
Treasury OIG has four components: the Office of Audit, Office of Investigations,
Office of Counsel, and 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,
1
5 U.S.C. §§401-424
2
Public Law (P.L.)112-141
Treasury Office of Inspector General Semiannual Report—March 2025 1
Treasury Office of Inspector General Overview
and evaluations. The Assistant Inspector General for Audit also serves as the Special
Deputy Inspector General for Small Business Lending Fund Program Oversight.
Under the Assistant Inspector General for Audit, there are three deputies. The first
deputy is primarily responsible for financial sector audits such as audits of banking
supervision, Customs revenue collection activities, and alcohol and tobacco excise
tax revenue collection activities. The second deputy is primarily responsible for
financial management and transparency audits including audits of Treasury and
Council’s financial statements, anti-money laundering/terrorist financing, foreign
sanctions, and intelligence programs and operations. The third deputy is primarily
responsible for cybersecurity, and financial assistance audits, including audits of
Treasury and Council’s information systems and domestic assistance and other
capital investment programs.
The Office of Investigations, under the leadership of the Assistant Inspector General
for Investigations, performs investigations and conducts initiatives to detect and
prevent fraud, waste, and abuse in programs and operations within Treasury OIG’s
jurisdictional boundaries; and to investigate threats against Treasury personnel and
assets in designated circumstances as authorized by the Inspector General Act. The
Office of Investigations also manages the Treasury OIG Hotline to facilitate reporting
of allegations involving these programs and operations.
The Office of Counsel, under the leadership of the Counsel to the Inspector General,
provides legal advice to the Inspector General and all Treasury OIG components. The
office represents Treasury OIG in administrative legal proceedings and provides a
variety of legal services, including (1) processing Freedom of Information Act and
Giglio 3 requests; (2) conducting ethics training; (3) ensuring compliance with financial
disclosure requirements; (4) reviewing proposed legislation and regulations;
(5) reviewing administrative subpoena requests; and (6) preparing for the Inspector
General’s signature cease and desist letters and monetary assessments against
persons and entities misusing the Treasury seal and name. The Office of Counsel
also responds to media and Congressional inquiries and serves as the Whistleblower
Protection Coordinator for Treasury.
The Office of Management, under the leadership of the Assistant Inspector General
for Management, provides administrative services to maintain the Treasury OIG
3
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 2025 2
Treasury Office of Inspector General Overview
administrative infrastructure, including facilities, human resources, information
technology, procurement, records management, and security.
Treasury OIG’s fiscal year 2025 appropriation was $48.3 million, which included up to
$2.8 million of 2-year funding for the RESTORE Act programs. Treasury OIG’s
oversight of the State Small Business Credit Initiative and Small Business Lending
Fund 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 $10 million for the Coronavirus Relief Fund, $104,000 for Emergency
Rental Assistance and $30,000 for the Homeowner Assistance Fund. As of March 31,
2025, Treasury OIG had 208 full-time staff.
Treasury Office of Inspector General Semiannual Report—March 2025 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 15, 2024, memorandum to the Secretary of the Treasury, OIG
reported the following four challenges facing the Department, one of which was
new:
• Ongoing Management of Coronavirus Disease 2019 (COVID-19)
Pandemic Relief Programs (reframed from previous challenge, COVID-19
Pandemic Relief)
• Cyber Threats (Repeat)
• Anti-Money Laundering/Terrorist Financing and Bank Secrecy Act
Enforcement (Repeat)
• Crypto and Digital Assets (New)
In addition to these challenges, we reported our concerns about the following
matters: (1) U.S. Mint gold acquisitions, (2) Bureau of Engraving and Printing’s
construction of a new facility, and (3) Treasury’s role with Customs revenue
functions.
Gulf Coast Ecosystem Restoration Council
In an October 3, 2024, letter to Administrator of the U.S. Environmental
Protection Agency, as Chairperson of the Council, OIG reported three
challenges:
• Recruiting and Retaining a Highly Skilled Workforce (Repeat)
• Federal Statutory and Regulatory Compliance (Repeat)
• Grant and Interagency Agreement Compliance Monitoring (Repeat)
.
Treasury Office of Inspector General Semiannual Report—March 2025 4
Office of Audit – Significant Audits and Other Products
Financial Management
Treasury’s Consolidated Financial Statements
A certified independent public accounting (IPA) 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 2024 and 2023 consolidated financial statements.
The IPA reported a significant deficiency in internal control over financial reporting at
the Internal Revenue Service representing a significant deficiency for Treasury as a
whole. The IPA 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. The IPA found no other instances of reportable noncompliance with
laws, regulations, contracts, and grant agreements tested. (OIG-25-009)
In connection with its audit of Treasury’s consolidated financial statements, the IPA
issued a management letter that discussed certain deficiencies in information
technology controls and recommended improvements. (OIG-25-012) Additionally, the
IPA issued a management letter recommending improvements 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 Bureau of the Fiscal Service (Fiscal Service). (OIG-25-013)
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 Internal Revenue Service (IRS) for
annual financial statement 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 2024 and 2023.
Treasury Office of Inspector General Semiannual Report—March 2025 5
Office of Audit – Significant Audits and Other Products
Treasury-audited financial statements and related audits
Fiscal year 2024 audit results Fiscal year 2023 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 1 U 0 2
Internal Revenue Service (A) U 0 1 U 0 2
Other required audits
Bureau of Engraving and
Printing U 0 0 U 0 0
Community Development
Financial Institutions Fund U 0 0 U 1 0
Office of D.C. Pensions U 0 0 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 0
Exchange Stabilization Fund U 0 0 U 0 0
Management-initiated audits
Office of the Comptroller of
the Currency U 0 0 U 0 0
Alcohol and Tobacco Tax
and Trade Bureau U 0 0 U 0 0
U.S. Gold Reserves Held by
Federal Reserve Banks U 0 0 U 0 0
U Unmodified opinion.
(A) Audited by the Government Accountability Office.
In connection with the fiscal year 2024 financial statement audits, the auditors issued
management letters on other matters involving internal control at the United States
Mint (Mint) (OIG-25-016), the Bureau of Engraving and Printing (BEP) (OIG-25-018).
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. 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 2024 and 2023 financial
Treasury Office of Inspector General Semiannual Report—March 2025 6
Office of Audit – Significant Audits and Other Products
statements. The IPA did not identify any matters involving internal control and its
operation that are considered material weaknesses. Additionally, the IPA did not
identify any instances of reportable noncompliance with laws, regulations, contracts,
and grant agreements tested. (OIG-25-008)
Attestation Engagements
An IPA, under a contract monitored by our office, completed the reports described
below in support of the audit of Treasury’s fiscal year 2024 consolidated financial
statements and the financial statement audits of certain other Federal agencies.
Reports on the Processing of Transactions by Fiscal Service
The IPA examined management of the Administrative Resource Center’s
description of its shared service system for processing customer agencies’
financial management, procurement, and human resource services
transactions and general computer and monitoring controls throughout the
period July 1, 2023, to June 30, 2024. The IPA also examined management of
the 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, and general computer and
investment/redemption processing controls used for processing various
Federal agencies’ transactions by Fiscal Service’s Federal Investments and
Borrowings Branch, for the period beginning August 1, 2023, and ending July
31, 2024. The IPA found, in all material respects, that the controls were fairly
presented in the description of controls for these activities and suitably
designed. The IPA also found that controls tested operated effectively
throughout the period. (OIG-25-001, OIG-25-004, and OIG-25-005)
Treasury Office of Inspector General Semiannual Report—March 2025 7
Office of Audit – Significant Audits and Other Products
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 2024 consolidated financial statements.
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 management system
system controls and security programs over its financial management systems in requirements
accordance with the federal financial management systems requirements. (first reported
in fiscal year 1997)
The status of these instances of noncompliance, including progress in implementing
remediation plans, will be evaluated as part of the audit of Treasury’s fiscal year 2025
consolidated financial statements.
Treasury Office of Inspector General Semiannual Report—March 2025 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, the
Department of the Treasury (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 (CAA, 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 Act of 2021 (ARP) 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, a
certified independent public accounting firm (IPA), working under a contract with and
supervised by our office, performed the following audits of air carrier worker support
certifications.
Audit of Air Carrier Worker Support Certifications – Sky Chefs, Inc.
The IPA determined that the contractor, Sky Chefs, Inc., 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. For the Awardable Amounts section, the IPA found that the
company overstated its awardable amount by $8,289,472, due to unsupported
benefit amounts, resulting in an overstatement; and differences between the
actual amounts paid and accrual-based financial information used for benefits.
However, the overstatements were entirely offset by the company’s exclusion
of salaries and wages for employees on non-aviation related activities, and
data compilation errors for salaries and wages.
Overall, Sky Chefs, Inc. understated its requested PSP1 amount by $4,916,391
and did not over-request PSP1 financial assistance despite partial
Treasury Office of Inspector General Semiannual Report—March 2025 9
Office of Audit – Significant Audits and Other Products
non-compliance with application requirements. As a result, no additional
amounts are owed back to Treasury. (OIG-25-010, Redacted)
Audit of Air Carrier Worker Support Certifications – AerSale, Inc.
The IPA determined that the contractor, AerSale, Inc., 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. For the Awardable Amounts section, the IPA found that the
company was unable to provide sufficient supporting documentation to
demonstrate that amounts requested for life insurance benefits were eligible
for PSP1. However, the unsupported life insurance benefit amounts were
entirely offset by differences between actual healthcare benefits paid and the
application figures compiled using actuarial estimates, 4 and exclusion of
non-aviation leased employees’ compensation.
Overall, AerSale, Inc. understated its requested PSP1 amount by $559,783 and
did not over-request PSP1 financial assistance despite partial non-compliance
with application requirements. As a result, no additional amounts are owed
back to Treasury. (OIG-25-011, Redacted)
CARES Act Compliance Monitoring
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) assigned our
office responsibility for monitoring and oversight of the receipt, disbursement, and
use of Coronavirus Relief Fund (CRF) proceeds. To carry out our monitoring
responsibilities, we developed a portal via GrantSolutions, a grants management
system under the U.S. Department of Health and Human Services, for CRF recipients
to report expenditures quarterly. CRF data was collected through September 30,
2023, for payment types related to Contracts greater than or equal to $50,000
(Contracts), Grants greater than or equal to $50,000 (Grants), Loans greater than or
equal to $50,000 (Loans), Transfers greater than or equal to $50,000 (Transfers),
Direct Payments greater than or equal to $50,000 (Direct Payments), Aggregate
Reporting less than $50,000 (Aggregate Reporting), and Aggregate Payments to
Individuals, in any amount (API). This data was displayed on the Pandemic Response
Accountability Committee’s website (https://www.pandemicoversight.gov/).
4
An actuarial estimate is a mathematical model used to forecast uncertain variables or events for the
purposes of calculating insurance premiums or benefits.
Treasury Office of Inspector General Semiannual Report—March 2025 10
Office of Audit – Significant Audits and Other Products
During this semiannual reporting period, as part of our compliance monitoring of
CRF payments, a certified IPA, working under a contract with and supervised by our
office, performed the following activities and outreach efforts for CRF recipients.
Desk Review of the State of Georgia’s Use of Coronavirus Relief
Fund Proceeds
The IPA determined that the State of Georgia’s (Georgia) expenditures related
to the Transfers payment type complied with the CARES Act and Treasury’s
Guidance. The IPA also determined that expenditures related to the Contracts,
Grants, Direct Payments, Aggregate Reporting, and API payment types
complied with the CARES Act but not with Treasury’s Guidance. There were no
questioned costs identified through this desk review.
Based on the work performed, the IPA determined that Georgia’s risk of
unallowable use of funds was low. As a result, the IPA has no
recommendations for follow-up for Treasury OIG. (OIG-CA-25-002)
Desk Review of the Baltimore County, Maryland’s Use of
Coronavirus Relief Fund Proceeds
The IPA determined that Baltimore County, Maryland’s expenditures related to
the Aggregate Reporting payment type did not comply with the CARES Act and
Treasury’s Guidance. The IPA also determined that expenditures related to the
Direct Payments payment type complied with the CARES Act but did not
comply with Treasury’s Guidance. The IPA identified total questioned costs of
$620,189.
Based on the work performed, the IPA determined that Baltimore County,
Maryland’s risk of unallowable use of funds was moderate and recommended
that the Treasury OIG confirm if the transactions noted as unsupported
expenditures can be supported. If support is not provided, Treasury OIG
should recoup the questioned costs or request that Baltimore County,
Maryland provide support for replacement expenses, not previously charged
to CRF, that were incurred during the CRF period of performance. The IPA also
recommended that Treasury OIG determine the feasibility of conducting an
audit. (OIG-CA-25-004) $620,189 Questioned Cost
Treasury Office of Inspector General Semiannual Report—March 2025 11
Office of Audit – Significant Audits and Other Products
Desk Review of the State of North Carolina’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the State of North Carolina’s (North Carolina)
expenditures related to Grants, Direct Payments, and Aggregate Reporting
payment types complied with the CARES Act, but not Treasury’s Guidance.
The IPA also determined that expenditures related to the Transfers and API
payment types did not comply with the CARES Act and Treasury’s Guidance.
The IPA identified total questioned costs of $476,115.
Based on the work performed, the IPA determined that North Carolina’s risk of
unallowable use of funds was moderate and recommended that Treasury OIG
confirm if the transactions noted as unsupported expenditures can be
supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that North Carolina provide support for
replacement expenses, not previously charged to CRF, that were incurred
during the CRF period of performance. The IPA also recommended that
Treasury OIG determine the feasibility of conducting an audit .and
(OIG-CA-25-005) $476,115 Questioned Cost
Desk Review of the State of West Virginia’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the State of West Virginia’s (West Virginia)
expenditures related to the Grants, Transfers, and Aggregate Reporting
payment types complied with the CARES Act and Treasury’s Guidance,
however, expenditures related to the Contracts payment type complied with
the CARES Act but not Treasury’s Guidance. Additionally, the IPA determined
that expenditures related to the Direct Payments and API payment types did
not comply with the CARES Act and Treasury’s Guidance. The IPA identified
total questioned costs of $21,575,074.
Based on the work performed, the IPA determined that West Virginia’s risk of
unallowable use of funds was moderate and recommended that Treasury OIG
confirm if the transactions noted as unsupported or ineligible expenditures can
be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that West Virginia provide support for replacement
expenses, not previously charged to CRF, that were incurred during the CRF
period of performance. The IPA also recommended that Treasury OIG
determine the feasibility of conducting an audit. (OIG-CA-25-007, Redacted)
$21,575,074 Questioned Cost
Treasury Office of Inspector General Semiannual Report—March 2025 12
Office of Audit – Significant Audits and Other Products
Desk Review of the Government of Guam’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the Government of Guam’s expenditures related to
the Direct Payments, Aggregate Reporting, and API payment types did not
comply with the CARES Act and Treasury’s Guidance. The IPA identified total
questioned costs of $3,962,502.
Based on the work performed, the IPA determined that the Government of
Guam’s risk of unallowable use of funds was high and recommended that
Treasury OIG confirm if the transactions noted as unsupported or ineligible
expenditures can be supported. If support is not provided, Treasury OIG
should recoup the questioned costs or request that the Government of Guam
provide support for replacement expenses, not previously charged to CRF, that
were incurred during the CRF period of performance. The IPA also
recommended that Treasury OIG determine the feasibility of conducting an
audit. (OIG-CA-25-010) $3,962,502 Questioned Cost
Desk Review of the Commonwealth of Pennsylvania’s Use of
Coronavirus Relief Funds
The IPA determined that the Commonwealth of Pennsylvania’s (Pennsylvania)
expenditures related to the API payment type complied with the CARES Act
and Treasury’s Guidance, however, expenditures related to the Grants,
Transfers, Direct Payments, and Aggregate Reporting payment types did not
comply with the CARES Act and Treasury’s Guidance. The IPA also determined
that expenditures related to the Contracts payment type complied with the
CARES Act but did not comply with Treasury’s Guidance. The IPA identified
total questioned costs of $61,282,912.
Based on the work performed, the IPA determined that Pennsylvania’s risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm if the transactions noted as unsupported can be supported. If support
is not provided, Treasury OIG should recoup the questioned costs or request
that Pennsylvania provide support for replacement expenses, not previously
charged to CRF, that were incurred during the CRF period of performance. The
IPA also recommended that Treasury OIG determine the feasibility of
conducting an audit of those related transactions. (OIG-CA-25-012) $61,282,912
Questioned Cost
Treasury Office of Inspector General Semiannual Report—March 2025 13
Office of Audit – Significant Audits and Other Products
Desk Review of the City of Fresno, California’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the City of Fresno, California’s expenditures related to
the Direct Payments and Aggregate Reporting payment types complied with
the CARES Act and Treasury’s Guidance, however, expenditures related to the
Contracts and API payment types did not comply with the CARES Act and
Treasury’s Guidance. The IPA identified total questioned costs of $272,083.
Based on the work performed, the IPA determined that City of Fresno,
California’s risk of unallowable use of funds was moderate and recommended
that Treasury OIG confirm if the transactions noted as unsupported
expenditures can be supported. If support is not provided, Treasury OIG
should recoup the questioned costs or request that the City of Fresno,
California provide support for replacement expenses, not previously charged
to CRF, that were incurred during the CRF period of performance. The IPA also
recommended that Treasury OIG determine the feasibility of conducting an
audit. (OIG-CA-25-013) $272,083 Questioned Cost
Desk Review of Dallas County, Texas’ Use of Coronavirus Relief
Funds
The IPA determined that Dallas County Texas’ expenditures related to the
Transfers and Aggregate Reporting payment types complied with the CARES
Act and Treasury’s Guidance, however, expenditures related to the Contracts,
Grants, Direct Payments, and API payment types did not comply with the
CARES Act and Treasury’s Guidance. The IPA identified total questioned costs
of $16,423,761.
Based on the work performed, the IPA determined that Dallas County, Texas’
risk of unallowable use of funds was moderate, and recommended that
Treasury OIG confirm if the transactions noted as unsupported or ineligible
expenditures can be supported. If support is not provided, Treasury OIG
should recoup the questioned costs or request that Dallas County, Texas
provide support for replacement expenses, not previously charged, that were
eligible during the CRF period of performance. The IPA recommended that
Treasury OIG determine the feasibility of conducting an audit.
(OIG-CA-25-014) $16,423,761 Questioned Cost
Treasury Office of Inspector General Semiannual Report—March 2025 14
Office of Audit – Significant Audits and Other Products
Desk Review of the State of Mississippi’s Use of Coronavirus Relief
Fund Proceeds
The IPA determined that the State of Mississippi’s (Mississippi) expenditures
related to Contracts and Grants payment types complied with the CARES Act
and Treasury’s Guidance, however, expenditures for the Aggregate Reporting
payment type complied with the CARES Act but did not comply with Treasury’s
Guidance. The IPA also determined that the expenditures related to the Direct
Payments and API payment types did not comply with the CARES Act and
Treasury’s Guidance. The IPA identified total unsupported questioned costs of
$1,324,066.
Based on the work performed, the IPA determined that Mississippi’s risk of
unallowable use of CRF was moderate and recommended that Treasury OIG
confirm if the transactions noted as unsupported expenditures can be
supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that Mississippi provide support for replacement
expenses, not previously charged, that were eligible during the CRF period of
performance. The IPA also recommended that Treasury OIG determine the
feasibility of conducting a limited scope review of Mississippi’s unemployment
expenditures and of conducting an audit for the Direct Payments and API
payment types. (OIG-CA-25-015) $1,324,066 Questioned Cost.
Desk Review of the State of Arizona’s Use of Coronavirus Relief
Fund Proceeds
The IPA determined that the State of Arizona’s (Arizona) expenditures related
to the Aggregate Reporting payment type complied with the CARES Act and
Treasury’s Guidance, however, expenditures related to Grants, Transfers, and
API payment types did not comply with the CARES Act and Treasury’s
Guidance. The IPA identified total questioned costs of $135,821,457.
Based on the work performed, the IPA determined that Arizona’s risk of
unallowable use of CRF was high and recommended that Treasury OIG
confirm if the transactions noted as unsupported or ineligible expenditures can
be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that Arizona provide support for replacement
expenses, not previously charged, that were eligible during the CRF period of
performance. The IPA also recommended that Treasury OIG determine the
feasibility of conducting an audit. (OIG-CA-25-016) $135,821,457 Questioned
Cost.
Treasury Office of Inspector General Semiannual Report—March 2025 15
Office of Audit – Significant Audits and Other Products
Desk Review of the District of Columbia’s Use of Coronavirus Relief
Fund Proceeds
The IPA determined that the District of Columbia’s (DC) expenditures related to
the Aggregate Reporting payment type complied with the CARES Act and
Treasury’s Guidance, however, expenditures related to Contracts, Grants, and
API payment types did not comply with CARES Act and Treasury’s Guidance.
The IPA also determined that DC did not comply with the reporting timeline as
required under Treasury OIG Guidance, Coronavirus Relief Fund Reporting and
Record Retention Requirements (OIG-CA-20-021). The IPA identified total
questioned costs of $27,481,906.
Based on the work performed, the IPA determined that DC’s risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm that the transactions noted as unsupported or ineligible expenditures
can be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that the DC provide support for replacement
expenses, not previously charged to CRF, that were incurred during the CRF
period of performance. The IPA also recommended Treasury OIG determine
the feasibility of performing additional testing over the portions of the
remaining $5,750,000 not tested and the remaining substantially dedicated API
balance. Additionally, the IPA recommended that Treasury OIG determine the
feasibility of conducting an audit for the Contracts, Grants, and API payment
type. (OIG-CA-25-017) $27,481,906 Questioned Cost.
Desk Review of the State of Utah’s Use of Coronavirus Relief Fund
Proceeds
The IPA determined that the State of Utah’s (Utah) expenditures related to the
Direct Payments payment type complied with the CARES Act and Treasury’s
Guidance, however, expenditures related to the Contracts, Grants, Transfers,
Aggregate Reporting, and API payment types did not comply with the CARES
Act and Treasury’s Guidance. The IPA identified total questioned costs of
$47,161,537.
Based on the work performed, the IPA determined that Utah’s risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm if the transactions noted as unsupported and ineligible expenditures
can be supported. If support is not provided, Treasury OIG should recoup the
Treasury Office of Inspector General Semiannual Report—March 2025 16
Office of Audit – Significant Audits and Other Products
questioned costs or request that the Utah provide support for replacement
expenses, not previously charged to CRF, that were incurred during the CRF
period of performance. The IPA also recommended that Treasury OIG
determine the feasibility of conducting an audit of the Contracts, Grants,
Transfers, Aggregate Reporting and API payment types. and follow-up with
Treasury’s Office of Capital Access on management decision letters
(OIG-CA-25-018) $47,161,537 Questioned Costs
Desk Review of the Commonwealth of Massachusetts’ Use of
Coronavirus Relief Fund Proceeds
The IPA determined that the Commonwealth of Massachusetts’
(Massachusetts) expenditures related to Grants and Aggregate Reporting
payment types complied with the CARES Act and the Treasury’s Guidance,
however, expenditures related to Contracts, Transfers, Direct Payments, and
API payment types did not comply with the CARES Act and Treasury’s
Guidance. The IPA identified total questioned costs of $164,101,025.
Based on the work performed, the IPA determined that Massachusetts’ risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm if the transactions noted as unsupported or ineligible expenditures can
be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that Massachusetts provide support for
replacement expenses, not previously charged to CRF, that were incurred
during the CRF period of performance. Additionally, the IPA recommended that
Treasury OIG determine the feasibility of conducting an audit.
(OIG-CA-25-019) $164,101,025 Questioned Cost.
Desk Review of the State of North Dakota’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the State of North Dakota’s (North Dakota)
expenditures related to the Grants and Transfers payment types complied with
the CARES Act but did not comply with Treasury’s Guidance. Additionally, the
IPA determined Contracts, Direct Payments, Aggregate Reporting, and API
payment types did not comply with the CARES Act and Treasury’s Guidance.
The IPA identified total questioned costs of $712,792.
Based on the work performed, the IPA determined that North Dakota’s risk of
unallowable use of funds was moderate and recommended that Treasury OIG
Treasury Office of Inspector General Semiannual Report—March 2025 17
Office of Audit – Significant Audits and Other Products
confirm if the transactions noted as unsupported or ineligible expenditures can
be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that North Dakota provide support for replacement
expenses, not previously charged to CRF, that were incurred during the CRF
period of performance. The IPA also recommended that Treasury OIG
determine the feasibility of conducting an audit. (OIG-CA-25-020) $712,792
Questioned Costs
Desk Review of the State of New Hampshire’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that State of New Hampshire’s (New Hampshire)
expenditures related to Transfers, Aggregate Reporting, and API payment
types complied with the CARES Act and Treasury’s Guidance, however,
expenditures related to the Contracts payment type complied with the CARES
Act but did not comply with Treasury’s Guidance. Additionally, the IPA
determined the expenditures related to Grants and Direct Payments payment
types did not comply with the CARES Act and Treasury’s Guidance. The IPA
identified total questioned costs of $16,424,839.
Based on the work performed, the IPA determined that New Hampshire’s risk
of unallowable use of funds was moderate and recommended that Treasury
OIG confirm if the transactions noted as unsupported or ineligible expenditures
can be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that New Hampshire provide support for
replacement expenses, not previously charged to CRF, that were incurred
during the CRF period of performance. The IPA also recommended Treasury
OIG determine the feasibility of performing additional follow-up to determine if
there were other instances of unsupported balances within the Direct
Payments payment types. (OIG-CA-25-021) $16,424,839 Questioned Costs
Desk Review of Oklahoma County, Oklahoma’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that Oklahoma County, Oklahoma’s (Oklahoma County)
expenditures related to the Contracts payment type complied with the CARES
Act and Treasury’s Guidance, however, expenditures related to Transfers,
Aggregate Reporting, and API payment types did not comply with the CARES
Act and Treasury’s Guidance. The IPA identified total questioned costs of
$417,882.
Treasury Office of Inspector General Semiannual Report—March 2025 18
Office of Audit – Significant Audits and Other Products
Based on the work performed, the IPA determined that Oklahoma County’s risk
of unallowable use of funds was moderate and recommended that Treasury
OIG confirm if the transactions noted as unsupported or ineligible expenditures
can be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that Oklahoma County provide support for
replacement expenses, not previously charged to CRF, that were incurred
during the CRF period of performance. The IPA also recommended that
Treasury OIG request that Oklahoma County management perform an
assessment of grants funds paid to the Oklahoma County Home Finance
Authority, which were not tested by the IPA, to determine if rental assistance
payments and prepaid debit cards payments were made utilizing solely
Oklahoma County’s CRF proceeds, or if these expenses were paid with State of
Oklahoma and Oklahoma City funding sources. Additionally, the IPA
recommended that Treasury OIG determine the feasibility of conducting an
audit. (OIG-CA-25-022) $417,882 Questioned Costs
Desk Review of the State of Oklahoma’s Use of Coronavirus Relief
Fund Proceeds
The IPA determined that the State of Oklahoma’s (Oklahoma) expenditures
related to the Grants, Transfers, Direct Payments, Aggregate Reporting, and
API payment types did not comply with the CARES Act and Treasury’s
Guidance. The IPA identified total questioned costs of $35,575,107.
Based on the work performed, the IPA determined that Oklahoma’s risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm if the transactions noted as unsupported or ineligible expenditures can
be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that Oklahoma provide support for replacement
expense, not previously charged to CRF, that were incurred during the CRF
period of performance. The IPA also recommended that Treasury OIG
determine the feasibility of conducting an audit.
(OIG-CA-25-023) $35,575,107 Questioned Costs
Desk Review of the Kiowa Tribe of Oklahoma’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the Kiowa Tribe of Oklahoma’s (Kiowa Tribe)
expenditures related to the Contracts, Aggregate Reporting, and API payment
types did not comply with the CARES Act and Treasury’s Guidance. The IPA
Treasury Office of Inspector General Semiannual Report—March 2025 19
Office of Audit – Significant Audits and Other Products
initially identified a total of $8,531,154 in questioned costs. Treasury OIG later
reduced the amounts of questioned costs by $1,000 following its review of
additional supporting documentation provided by the Kiowa Tribe. As such,
the desk review resulted in total questioned costs of $8,530,154.
Based on the work performed, the IPA determined that Kiowa Tribe’s risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm if the transactions noted as unsupported or ineligible expenditures can
be supported. If support is not provided, Treasury OIG should recoup the funds
or request Kiowa Tribe provide support for replacement expenses, not
previously charged to CRF, that were eligible during the CRF period of
performance. interest. The IPA also recommended that Treasury OIG
determine the feasibility of conducting an audit. (OIG-CA-25-024) $8,530,154
Questioned Cost.
Desk Review of the State of Washington’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the State of Washington’s (Washington) expenditures
related to the Contracts and Aggregate Reporting payment types complied
with the CARES Act and Treasury’s Guidance, however, expenditures related
to the Grants, Transfers, Direct Payments, and API payment types did not
comply with the CARES Act and Treasury’s Guidance. The IPA identified total
questioned costs of $14,368,934.
Based on the work performed, the IPA determined that Washington’s risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm if the transactions noted as unsupported or ineligible expenditures can
be supported. If support is not provided, Treasury OIG should recoup the
questioned costs or request that Washington provide support for replacement
expenses, not previously charged to CRF, that were incurred during the CRF
period of performance. The IPA also recommended that Treasury OIG
determine the feasibility of conducting an audit (OIG-CA-25-025) $14,368,934
Questioned Costs
Desk Review of the State of New Jersey’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the State of New Jersey’s (New Jersey) expenditures
related to the Contracts, Grants, Transfers, Direct Payments, Aggregate
Treasury Office of Inspector General Semiannual Report—March 2025 20
Office of Audit – Significant Audits and Other Products
Reporting, and API payment types did not comply with the CARES Act and
Treasury’s Guidance. The IPA identified total questioned costs of
$1,110,559,989.
Based on the work performed, the IPA determined that New Jersey’s risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm if the transactions noted as unsupported expenditures and ineligible
expenditures can be supported. If support is not provided, Treasury OIG
should recoup the funds or request that New Jersey provide support for
replacement expenses, not previously charged to CRF, that were eligible
during the CRF period of performance. The IPA also recommended Treasury
OIG determine the feasibility of performing additional follow-up with New
Jersey to determine if there were other instances of unsupported balances
within the Transfers and the remaining portion of the Grant balance. The IPA
noted unsupported Aggregate Reporting and API questioned costs and
recommended Treasury OIG determine the feasibility of performing additional
follow up with New Jersey to obtain sufficient expenditure level detail needed
to support the claimed amounts.
During the review, New Jersey identified potential fraudulent transactions of
$1,007,050 for the New Jersey Economic Development Authority. The IPA
recommended Treasury OIG determine the feasibility of requesting that New
Jersey perform an assessment to determine if all fraudulent transactions have
been removed from the claimed amounts in the general ledger balances. The
IPA also recommend Treasury OIG determine the feasibility of following up
with New Jersey’s management to obtain the missing New Jersey Economic
Development Authority population questioned as other matters and utilizing
the listing of potential fraudulent transactions to determine if the $1,007,050
potential fraudulent amounts were properly reversed. Furthermore, the IPA
recommended Treasury OIG determine the feasibility of conducting an audit.
(OIG-CA-25-026) $1,110,559,989 Questioned Cost.
Desk Review of the Native Village of Selawik’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the Native Village of Selawik’s expenditures related to
the Direct Payments, Aggregate Reporting, and API payment types did not
comply with the CARES Act and Treasury’s Guidance. The IPA identified total
questioned costs of $1,176,698.
Based on the work performed, the IPA determined that the Native Village of
Selawik’s risk of unallowable use of funds was high and recommended that
Treasury Office of Inspector General Semiannual Report—March 2025 21
Office of Audit – Significant Audits and Other Products
Treasury OIG confirm if the transactions noted as unsupported expenditures
and ineligible costs can be supported. If support is not provided, Treasury OIG
should recoup the questioned costs or request that the Native Village of
Selawik provide support for replacement expenses, not previously charged to
CRF, that were incurred during the CRF period of performance. The IPA also
recommended Treasury OIG determine the feasibility of conducting an audit
(OIG-CA-25-027) $1,176,698 Questioned Costs
Desk Review of the State of Nebraska’s Use of Coronavirus Relief
Fund Proceeds
The IPA determined that the State of Nebraska’s (Nebraska) expenditures
related to the Contracts payment type complied with the CARES Act and
Treasury’s Guidance, however, expenditures related to the Grants, Transfers,
Aggregate Reporting, and API payment types did not comply with the CARES
Act and Treasury’s Guidance. The IPA identified total questioned costs of
$15,830,130.
Based on the work performed, the IPA determined that Nebraska’s risk of
unallowable use of funds was high and recommended that Treasury OIG
confirm if the unsupported expenditures can be supported. If support is not
provided, Treasury OIG should recoup the questioned costs or request that the
Nebraska provide support for replacement expenses, not previously charged to
CRF, that were incurred during the CRF period of performance. The IPA
recommended that Treasury OIG determine the feasibility of conducting an
audit. (OIG-CA-25-028) $15,830,130 Questioned Costs
Desk Review of the State of Connecticut’s Use of Coronavirus
Relief Fund Proceeds
The IPA determined that the State of Connecticut’s (Connecticut) expenditures
related to the Contracts, Grants, Transfers, Direct Payments, Aggregate
Reporting, and API payment types did not comply with the CARES Act and
Treasury’s Guidance. The IPA further determined that the Connecticut did not
comply with the reporting timeline as required under Treasury OIG Guidance,
CRF Reporting and Record Retention Requirements (OIG-CA-20-021). The IPA
identified total questioned costs of $167,633,232
Based on the work performed, the IPA determined that Connecticut’s risk of
unallowable use of CRF was high and recommended that Treasury OIG
confirm if the $167,633,232 noted as unsupported expenditures can be
supported. If support is not provided, Treasury OIG should recoup the
Treasury Office of Inspector General Semiannual Report—March 2025 22
Office of Audit – Significant Audits and Other Products
questioned costs or request that Connecticut provide support for replacement
expenses, not previously charged to CRF, that were incurred during the CRF
period of performance. The IPA recommended that Treasury OIG determine
the feasibility of conducting an audit.
(OIG-CA-25-029) $167,633,232 Questioned Cost.
Treasury Office of Inspector General Semiannual Report—March 2025 23
Office of Audit – Significant Audits and Other Products
Emergency Rental Assistance Oversight
Section 501 of the Consolidated Appropriations Act, 2021 (CAA, 2021) assigned our
office the responsibility to conduct monitoring and oversight of the receipt,
disbursement, and use of Emergency Rental Assistance (ERA)1 and ERA2 funds and
the authority to recoup funds used in violation of the CAA, 2021 and Treasury’s
Guidance. The ERA1 statute, codified at 15 USC § 9058a, and the ERA2 statute,
codified at 15 USC § 9058c, direct Treasury to make allocations and payments to
eligible grantees such as State and Local governments, who in-turn, make funding
available in the form of rental assistance to eligible households. As part of its
oversight authority for ERA1, if Department of the Treasury (Treasury) Office of
Inspector General (OIG) determines that a grantee failed to comply with the use of
funds requirements in the statute, the amount equal to the amount of funds used in
violation shall be booked as a debt of such entity owed to the Federal Government
(i.e., recoup the misused funds). Under ERA2, Treasury OIG reports misused funds to
Treasury management as questioned costs for its action.
During this reporting period we performed the following activities and outreach
efforts for ERA1 and ERA2:
State of Washington
The State of Washington is a recipient of funds under the ERA2 statute. In
August 2023, a Thurston County, WA internal auditor informed the Treasury
OIG of three cases of suspected and confirmed fraudulent ERA2 financial
assistance payments made by Thurston County Public Health and Social
Services, a subrecipient of ERA2 Federal financial assistance awards for the
State of Washington. After assessing the results of the Thurston County, WA
internal auditor’s review, we determined that the State of Washington, through
its subrecipient, paid a total of $74,160 in ERA2 funds to three ineligible
households in violation of the Use of Funds statute. Accordingly, we question
those costs. Treasury agreed with our recommendation that its Office of
Capital Access disallow these costs and direct the State of Washington to
reimburse its ERA2 program $74,160 from non-Federal funds.
(OIG-CA-25-008, Redacted) $74,160 Questioned Costs
Thurston County, Washington
Thurston County, Washington (Thurston County) is a recipient of funds under
the ERA2 statute. In August 2023, a Thurston County internal auditor informed
Treasury Office of Inspector General Semiannual Report—March 2025 24
Office of Audit – Significant Audits and Other Products
the Treasury OIG of 17 cases of suspected and confirmed fraudulent ERA2
financial assistance payments made by Thurston County. After assessing the
results of the Thurston County internal auditor’s review, we determined that
Thurston County paid a total of $341,994.05 in ERA2 funds to 17 ineligible
households in violation of the Use of Funds statute. Accordingly, we question
those costs. Treasury agreed with our recommendation that its Office of
Capital Access disallow these costs and direct Thurston County to reimburse
its ERA2 program $341,994.05 from non-Federal funds.
(OIG-CA-25-009, Redacted) $341,994.05 Questioned Costs
State of Alaska
The State of Alaska is a recipient of funds under the ERA1 statute through its
component unit Alaska Housing Finance Corporation (AHFC). In September
2022, we made an inquiry to AHFC regarding an allegation of fraud reported to
the OIG Hotline that two individuals acting as a landlord and a tenant enrolled
and applied fraudulently to receive rental assistance funds. Based on the
information obtained in response to our inquiry, we determined that AHFC
paid out ERA1 funds in the amount of $16,698.52 in violation of the ERA1
statute because the funds were disbursed to an ineligible household. On
December 11, 2024, Treasury’s Bureau of the Fiscal Service issued an invoice
for $16,698.52 to the State of Alaska, establishing a debt to the Federal
Government. (OIG-CA-25-030, Redacted) $16,698.52 Questioned Costs
Harris County, Texas
Harris County, Texas (Harris County), is a recipient of funds under the ERA1
statute. In March 2023, we made an inquiry to Harris County regarding an
allegation that a landlord received rental assistance funds but proceeded to
evict the tenant from the premises. Based on the results of its review, we
determined that Harris County failed to comply with the ERA1 statute when it
paid out $2,805 of ERA1 funds to an ineligible party. Additionally, Harris
County informed us that it had recharacterized the $2,805 payment from its
ERA1 program to its ERA2 program. In this regard, the recharacterization from
ERA1 to ERA2 was not permissible under Treasury Guidance, because the
ERA1 payment was made to an ineligible household. In response to a draft OIG
Notice of Recoupment, Harris County reimbursed the Federal Government for
$2,805. Accordingly, in our report we make no recommendation to Treasury
management. (OIG-CA-25-036, Redacted) $2,805.00 Questioned Costs
Treasury Office of Inspector General Semiannual Report—March 2025 25
Office of Audit – Significant Audits and Other Products
Cyber/Information Technology
Cybersecurity Act
Section 107 of the Cybersecurity Information Sharing Act (CISA), under Title 1 of the
Cybersecurity Act of 2015, “Oversight of Government Activities,” requires the
Inspectors General of the “appropriate Federal entities,” defined as the Departments
of Commerce, Defense, Energy, Homeland Security, Justice, and the Treasury, and
the Office of the Director of National Intelligence, in consultation with the Intelligence
Community Inspector General (IC IG) and the Council of Inspectors General on
Financial Oversight, to jointly report to Congress on the actions taken by the
respective agencies over the recent two-year period to carry out the provisions of
CISA.
During this semiannual reporting period, we issued a report covering Treasury’s
cybersecurity information activities for calendar years (CY) 2021 and 2022 in support
of the biennial joint report to Congress.
Audit of the Department of the Treasury’s Cybersecurity
Information Sharing
To meet our reporting obligation under Section 107, in support of the fourth
biennial joint report, we conducted an audit of Treasury’s activities during CY
2021 and 2022 to carry out the provisions of CISA to share cyber threat
indicators and defensive measures. The scope of our audit included all of
Treasury’s cyber information sharing policies and procedures as well as
activities for sharing cyber threat indicators and defensive measures during the
two-year period. We applied the common question set created by the IC IG for
the purpose of the CISA Section 107 joint report.
Overall, we had no findings and concluded that Treasury’s activities to share
cyber threat indicators and defensive measures during CY 2021 and CY 2022
were adequate and aligned with CISA’s provisions. As part of our reporting
process, we provided Treasury management an opportunity to comment on a
draft of this report. In a memorandum, management concurred with the
conclusions of the report. (OIG-25-007)
Treasury Office of Inspector General Semiannual Report—March 2025 26
Office of Audit – Significant Audits and Other Products
Manufacturing and Revenue
We conduct audits of the Department of the Treasury (Treasury) coin and currency
and revenue programs. During this semiannual period, we issued the following
reports on these programs.
Complaint Referral Memorandum – United States Mint’s
Congressional Award Medal Loss
Based on a complaint received on the loss of 120 Congressional Award
Program (CAP) medals incurred by the United States Mint’s (Mint) plating
contractor, Treasury’s Office of Audit initiated an inquiry to develop an
understanding of the events surrounding the loss.
The Mint’s contract with its sole source plating contractor prohibited relocating
Mint assets to any location without Mint’s approval. The 120 lost medals were
lost in shipping between the subcontractor and contractor. Mint was unaware
that a subcontractor was being used in the plating of the CAP medals. The
contractor informed the Mint that it subcontracted the plating of the medals
because its plating lines were down and had no plans to bring the plating lines
back up because it was not cost effective. The Mint’s standard cost of the 120
medals is approximately $21,000.
We recommended that the Mint Director ensure that the Mint (1) recovers its
costs on the lost 120 CAP medals from the sole source contractor, (2) engages
its Protection officials to complete the Mint’s investigation of the lost CAP
medals and conducts a lessons-learned review of this incident to implement
process improvements for future contracts, and (3) conducts a fully
competitive solicitation for a source that can provide plating for the CAP
medals. (OIG-CA-25-038)
Treasury Office of Inspector General Semiannual Report—March 2025 27
Office of Investigations – Significant Investigations
CARES Act Investigations
North Carolina Resident Sentenced for Mail Fraud Related to Emergency
Rental Assistance Scheme
On March 19, 2025, the Office of Inspector General (OIG) completed its report of
investigation for a joint Emergency Rental Assistance (ERA) case with the U.S.
Department of Housing and Urban Development Office of Inspector General and the
North Carolina State Bureau of Investigation. The subject, a North Carolina resident,
fraudulently claimed to be the landlord on 26 ERA applications and the tenant on one
application. Eleven of those applications were funded. On March 12, 2025, the
subject, pled guilty to mail fraud; sentenced to 18 months imprisonment, three years
supervised release, and ordered to pay $144,000 in restitution. The U.S. Attorney’s
Office for the Eastern District of North Carolina prosecuted the case.
Civil Settlement for Fraudulently Obtained Emergency Rental Assistance
Benefits
On March 10, 2025, the OIG completed its report of investigation regarding
fraudulent ERA applications resulting in overpayment of federal funds. On June 13,
2024, a civil settlement was reached, and the involved property management
company agreed to pay $300,000 for the fraudulent certification and submittal of
Treasury Rent Assistance Program applications. The U.S. Attorney’s Office for the
Eastern District of Washington negotiated the civil settlement.
Allegation of Payroll Support Program One (PSP1) Fraud by Airline
Contractor Unsubstantiated
On October 2, 2024, the OIG completed its report of investigation for a case initiated
upon receipt of House of Representatives correspondence reporting the misuse of a
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Payroll Support
Program (PSP1) award. The complaint alleges that an airline contractor received a
$171 million PSP1 award but failed to pay employees included on the payroll and
may have manipulated the PSP1 rules and agreements to justify false terminations.
Investigation revealed that although there was a mass layoff prior to receipt of the
Treasury Office of Inspector General Semiannual Report—March 2025 44
Office of Investigations – Significant Investigations
PSP1 award, the airline contractor received pro-rata funding, rehired 60% of staff
initially terminated, and returned over $10.6 million to the U.S. Department of the
Treasury. Additionally, the terminations and furloughs between the PSP1 application
date and agreement date were determined by the U.S. Department of the Treasury
not to be material and in compliance with the PSP1 agreement, thus the allegation
was unsubstantiated.
Other Significant Investigations
Allegations of Misuse of Bank Customer Data and Violation of Contract
Terms by OCC Contractor Substantiated
On December 11, 2024, the Office of Inspector General (OIG) completed its report of
investigation for a joint case with the Board of Governors of the Federal Reserve
System (Board) OIG initiated upon receiving a complaint from the Office of the
Comptroller of the Currency (OCC) alleging an OCC contractor misused bank
customer data and violated terms of contracts with the OCC. The investigation
discovered the contractor violated material OCC and Federal Reserve Board (FRB)
contract provisions by improperly using anonymized credit card information received
pursuant to OCC and FRB contracts for commercial analysis products. Furthermore,
the investigation found the prohibited use of OCC and FRB bank data resulted in
inaccurate and synthetic analyses which the contractor misrepresented in the sale of
commercial products to its clients. On March 11, 2024, following the OIG’s
investigation and findings, the contractor entered a $37 million settlement with the
U.S. Department of Justice, Civil Division and the U.S. Attorney’s Office for the
Eastern District of Virginia, Civil Division for covered conduct under the Financial
Institutions Reform, Recovery and Enforcement Act and False Claim Act.
Seven Subjects Sentenced for Conspiracy and Prohibition of Illegal
Gambling Business
On December 17, 2024, the OIG completed its report of investigation for a joint
Internal Revenue Service Criminal Investigation Division investigation into seven
identified subjects who conspired to defraud the Department of the Treasury by
operating multiple illegal gambling businesses and not reporting the proceeds to the
IRS. The subjects were using OCC regulated banks to facilitate the laundering of their
illegal proceeds and to evade the payment of Federal taxes. All subjects were
sentenced to a total of 36 years’ and 2 months’ incarceration, 21 years’ probation,
Treasury Office of Inspector General Semiannual Report—March 2025 29
Office of Investigations – Significant Investigations
and over $15.5 million in fines and restitution with an additional $1.46 million
attained through forfeiture. The U.S. Attorney’s Office for the Northern District of
Ohio prosecuted the case.
Two Subjects, Including One Who Posed as a Lawyer, Sentenced for
Fraud Conspiracy in Connection with Fraudulent Debt Elimination
Scheme
On March 7, 2025, the OIG completed its report of investigation regarding allegations
that two identified subjects conducted fraudulent in-person trainings purporting to
educate victim-debtors on how to discharge consumer debt using a special bank
account number that could be found on the back of their social security cards and
birth certificates. The subjects were sentenced to serve a total of 34 years’
incarceration and ordered to pay $3.2 million of restitution. The U.S. Attorney’s Office
for the District of Maryland prosecuted the case.
Seven Subjects Sentenced for Access Device Fraud, Money Laundering,
Conspiracy and Identity Theft
On December 10, 2024, the OIG completed its report of investigation regarding a joint
Federal Bureau of Investigation, U.S. Department of Homeland Security, and U.S.
Postal Inspection Service investigation into seven identified subjects that conspired
to conduct a variety of telephone scams, including impersonation of Treasury
employees, leading to fraudulently obtained funds being laundered through Wal-
Mart and Sam’s Club gift cards. Over 400 individuals fell victim to the frauds. All
seven subjects were sentenced to a total of 9 years’ and 10 months’ incarceration, 20
years’ probation, and $198,979.19 in restitution. The U.S. Attorney’s Office for the
Eastern District of Virginia prosecuted the case.
Four Subjects Sentenced for Dealing in Counterfeit Obligations, Delay
and Destruction of Mail, and Bank Fraud
On January 31, 2025, the OIG completed its report of investigation for a joint
investigation involving the United States Postal Service, Office of Inspector General;
the Social Security Administration, Office of Inspector General; and the United States
Postal Inspection Service. Initiated upon notification from the Internal Revenue
Service Criminal Investigation Division alleging that altered Treasury checks were
Treasury Office of Inspector General Semiannual Report—March 2025 30
Office of Investigations – Significant Investigations
negotiated near Chicago, Illinois. The identified subjects defrauded financial
institutions by stealing Treasury checks from the mail, altering them, and negotiating
the altered checks for cash. All four subjects were sentenced to a total of 4 years’
incarceration, 12 years’ probation, and $179,930 in restitution and fines. The United
States Attorney’s Office for the Northern District of Illinois and the Office of the
Illinois Attorney General prosecuted this case.
Jamaican Citizen Sentenced for Operating Fraudulent Debt Relief
Websites
On February 21, 2025, OIG completed its investigation regarding the operation of a
series of fraudulent debt relief websites. On September 19, 2024, a Jamaican citizen
was sentenced to 36 months incarceration and ordered to pay $62,394 in restitution
to over 50 victims of a consumer debt relief scam. Between 2016 and 2018, the
subject operated a series of websites promising consumer debt relief under the
American Recovery and Reinvestment Act of 2008 in exchange for payments of a
portion of the debt relief. The U.S. Attorney’s Office in Washington DC, along with the
Department of Justice Computer Crimes and Intellectual Property Section,
prosecuted this case.
Treasury Office of Inspector General Semiannual Report—March 2025 31
Treasury OIG Accomplishments and Activities
Treasury and OIG Joint Notice to ERA Grantees
On October 4, 2024, Treasury and Office of Inspector General (OIG) issued a
Joint Notice entitled “U.S. Department of the Treasury and the Treasury Office
of Inspector General Reminding All Emergency Rental Assistance (ERA)
Financial Assistance Award Recipients of Responsibilities and Requirements
for Reporting Fraud and Reimbursing Fraud Losses and Unallowable Costs.”
The Joint Notice reminded all grantees and subrecipients of financial
assistance awards of their responsibilities to use the awards only for those
purposes set forth in the ERA authorizing statutes and to comply with the
requirements under Uniform Guidance 5 for reporting fraud and reimbursing
Treasury or grantees’ ERA programs for fraud losses and unallowable costs.
Grantees and /or their subrecipients were also informed to submit individual
cases of fraud, waste, or abuse related to the ERA awards to the OIG hotline
and Treasury’s Office of Capital Access. Additionally, grantees and
subrecipients were provided instructions on how to report “bulk” submissions
of multiple cases of fraud, waste, and abuse related to the ERA awards.
The Joint Notice is available on OIG’s website at Home | Office of Inspector
General and Treasury’s website at Guidance | U.S. Department of the Treasury.
Pursuant to the Joint Notice, during this semiannual reporting period grantees
repaid $137,254.22 to Treasury and $20,620.45 to their ERA2 programs, as
follows:
ERA1 Repayments to Treasury
City of Los Angeles $73,280.85
State of Arkansas $63,973.37
ERA2 Reimbursements to the Grantee ERA Program
Berks County PA $20,620.45
Total Voluntary ERA Repayments $157,874.67
5
Known as Uniform Guidance, the Uniform Administrative Requirements, Cost Principles, and Audit
requirements for Federal Awards are found at 2 CFR Part 200. Among its mandatory requirements and
disclosures, is the timely disclosure in writing to the Federal awarding agency or pass-through entity
of all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially
affecting the Federal award.
Treasury Office of Inspector General Semiannual Report—March 2025 44
Treasury OIG Accomplishments and Activities
Treasury OIG Leadership Roles
Department of the Treasury (Treasury) Office of Inspector General (OIG)
professionals serve on various important public and private professional
organizations supporting the Federal audit community. Examples of participation in
these organizations follow:
Pauletta Battle, Deputy Assistant Inspector General for Financial Management and
Transparency Audits, serves as the Council of the Inspectors General on Integrity and
Efficiency’s Accounting Standards Implementation Committee member on the
Federal Accounting Standards Advisory Board.
Julie Wong, Director, for CARES Act Oversight, is the National Single Audit
Coordinator for Treasury.
Treasury Office of Inspector General Semiannual Report—March 2025 33
Statistical Summary
Summary of Treasury OIG Activities
October 1, 2024, through March 31, 2025
Number or
OIG Activity Dollar Value
Office of Counsel Activities
Regulation and legislation reviews 20
Instances where information was refused 0
Office of Audit Activities
Reports issued and other products 61
Disputed audit recommendations 0
Significant revised management decisions 0
Management decision in which the Inspector General disagrees 0
Questioned costs $1,852,168,042
Funds put to better use $0
Voluntary repayments* $161,540
Total monetary benefits $1,852,329,582
Office of Investigations Activities**
Criminal and judicial actions (including joint investigations)
Investigative reports issued 71
Cases referred for prosecution and/or litigation 39
Individuals referred for criminal prosecution to the Department of Justice 98
Individuals referred for criminal prosecution to state and local authorities 12
Cases accepted for prosecution and/or litigation 43
Arrests 8
Indictments/informations 33
Convictions (by trial and plea) 14
Criminal Fines / Restitution / Court Fees $172,200,000
Total OIG Monetary Results $2,024,529,582
*Voluntary repayment in response to CRF audit work and our October 4, 2024, ERA Joint Notice.
**During the reporting period, subjects were sentenced to 1,383 months of prison time, 610 months of probation, 10 days of
community service.
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 from October 1, 2024, through
March 31, 2025. Some statistics represent actions occurring in the case prior to case
closure and open reporting results.
Treasury Office of Inspector General Semiannual Report—March 2025 45
Other Reporting Requirements and Requests
Reports with Unimplemented Recommendations
Issued prior to October 1, 2024
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 programs and activities of
the Gulf Coast Ecosystem Restoration Council and the National Oceanic and
Atmospheric Administration’s Gulf Coast Ecosystem Restoration Science,
Observation, Monitoring, and Technology Program.
Treasury OIG is reporting 109 open and unimplemented recommendations for
45 reports issued prior to October 1, 2024, with $2.2 billion in potential cost savings.
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 Issued
Year
2018 OIG-18-044 TERRORIST FINANCING/ MONEY 04/18
LAUNDERING: 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 implement a compliance monitoring
program to assess whether intelligence analysts’ activities are conducted
in accordance with Office of Intelligence and Analysis authorities, and
electronic searches and other queries are performed in a manner that fully
protects the rights of U.S. persons. Management agreed with the
recommendation.
Treasury Office of Inspector General Semiannual Report—March 2025 35
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2020 OIG-20-003 INFORMATION TECHNOLOGY: 10/19
Department of the Treasury Federal
Information Security Modernization Act
Fiscal Year 2019 Performance Audit
1.& 2. 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 800-53. Management
agreed with the recommendation.
Fiscal Report Number Report Title Date Issued
Year
2020 OIG-20-007 DATA ACT: Treasury Continues to Make 11/19
Progress 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 Issued
Year
2020 OIG-20-022 FINANCIAL MANAGEMENT: 12/19
Management Report 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 finalize policies
and procedures to review audit logs of production DB2 servers.
2. Implement an oversight process to ensure that designated Fiscal Service
personnel:
a. Reviews the security logs for the UNIX and DB2 servers hosting the
Payment Information Repository, Judgment Fund Internet Claim System,
Treasury Office of Inspector General Semiannual Report—March 2025 36
Other Reporting Requirements and Requests
and Security Payment System applications on a pre-defined frequency, as
indicated in the Fiscal Service Baseline Security Requirements,
b. Formally documents completion of their reviews and any escalations to
the Information System Security Office, and
c. Retains the audit logs and documentation of its reviews for 18 months,
as required by the Baseline Security Requirements.
3. Periodically review Fiscal Service management’s implementation and
operation of the review the security audit logs for the UNIX and DB2
servers hosting the Payment Information Repository, Judgment Fund
Internet Claim System, and Security Payment System 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.
4. 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.
5. Develop and implement documentation to assign responsibility for
ensuring adequacy of UNIX and database security and baseline settings.
6. 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 Security
Technical Implementation Guides. Management should document any
deviations from the Security Technical Implementation Guides and note
compensating controls that mitigate the security risk to an acceptable level.
7. Develop, document, and implement policies, procedures, and controls to
conduct periodic reviews of actual UNIX and database settings against the
security configuration baselines.
8. Provide logging and monitoring of security related events to include the
retention of evidence of reviews performed.
9. Develop a baseline of essential security settings and specifying that
baseline as the standard to be observed.
10. 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.
Treasury Office of Inspector General Semiannual Report—March 2025 37
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2020 OIG-20-027 RESOURCE MANAGEMENT: Audit of 02/20
the Department of the Treasury
Departmental Offices Executive Pay
Adjustments, Bonuses, and Awards
1. Office of the Deputy Assistant Secretary for Human Resources and Chief
Human Capital Officer and Office of Executive Resources calculate the
overpayment amounts for the two Departmental Office Senior Executive
Service members whose pay was set higher than allowed by regulation.
Management agreed with the recommendation.
Fiscal Report Number Report Title Date Issued
Year
2020 OIG-20-042 RESOURCE MANAGEMENT: Audit of 08/20
the Department of the Treasury
Departmental Offices Executive Pay
Adjustments, Bonuses, and Awards
1. The U.S. Mint Director before processing any mutilated or uncurrent
redemptions and ensure the Mint strengthens and finalizes standard
operating procedures 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 of Governors of the Federal Reserve System to develop
appropriate interagency procedures to assure the integrity of the coin
redemption process for uncurrent coins. Management agreed with the
recommendation.
Fiscal Report Number Report Title Date Issued
Year
2021 OIG-21-021 FINANCIAL MANAGEMENT: 02/21
Management Report for the Audit of
the Department of the Treasury's
Consolidated Financial Statements for
Fiscal Years 2020 and 2019
1. Fiscal Service management should perform a review of the current system
environment against the Configuration Management Database to ensure
that all information system components are inventoried.
Treasury Office of Inspector General Semiannual Report—March 2025 38
Other Reporting Requirements and Requests
2. Perform a risk assessment over the subject matter and determine the
appropriate personnel to be responsible for monitoring and updating the
Configuration Management Database.
3. Update policy and procedures related to the above recommendations and
disseminate the documentation to enforce such policy and procedures.
Management agreed with the recommendations.
Fiscal Report Number Report Title Date Issued
Year
2022 OIG-22-004 INFORMATION TECHNOLOGY: 10/21
Department of the 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 Date Issued
Year
2022 OIG-22-005 CYBERSECURITY/ INFORMATION 10/21
TECHNOLOGY: Department of the
Treasury Federal Information Security
Modernization Act Fiscal Year 2021
Performance Audit (Sensitive But
Unclassified)
1.& 2. These recommendations are Sensitive But Unclassified. Management
agreed with the recommendations.
Fiscal Report Number Report Title Date Issued
Year
2022 OIG-22-008 DATA ACT: Treasury Submitted Higher 11/21
Quality Non-IRS Data in its Fiscal Year
2020 Third Quarter DATA Act
Submission, However Improvements
are Still Needed
1. Treasury 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 2025 39
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2022 OIG-22-037 CYBERSECURITY/ INFORMATION 09/22
TECHNOLOGY: Federal Information
Security Modernization Act Fiscal Year
2022 Performance Audit for the
Unclassified Systems (Sensitive But
Unclassified)
1. This recommendation is Sensitive But Unclassified. Management agreed
with the recommendation.
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-23-028 CORONAVIRUS DISEASE 2019 06/23
PANDEMIC RELIEF PROGRAMS: Audit
of Air Carrier Worker Support
Certifications - Ground Services
International, Inc.
1. The Chief Recovery Officer should review Ground Services International,
Inc.'s and Inflight Catering's requested amount for unallowable expenses,
under Payroll Support Program Extension and Payroll Support Program 3,
and seek reimbursement for the overpayment, if applicable. Management
agreed with the recommendation.
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-23-030 ANTI-MONEY 08/23
LAUNDERING/ TERRORIST
FINANCING: Audit of FinCEN's
Management of BSA Data -
Suppression Report
1. The Director of Financial Crimes Enforcement Network (FinCen) should
require agencies that receive bulk data to remove suppressed records as a
condition of their MOUs.
2. Publish and communicate guidance explaining how FinCEN will notify bulk
data agencies of records to be suppressed within bulk data files and
specifying the timelines for FinCEN and the agencies’ required actions
regarding the suppression of the records. Management agreed with the
recommendations.
Treasury Office of Inspector General Semiannual Report—March 2025 40
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-24-022 CYBERSECURITY/ INFORMATION 01/24
TECHNOLOGY: Department of the
Treasury Federal Information Security
Modernization Act Fiscal Year 2023
Performance Audit for the Unclassified
Systems (Sensitive But Unclassified)
1.& 2. Sensitive But Unclassified. Management agreed with the
recommendations.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-24-023 CYBERSECURITY/ INFORMATION 12/23
TECHNOLOGY: Department of the
Treasury Federal Information Security
Modernization Act Fiscal Year 2023
Performance Audit for the Collateral
National Security Systems (Sensitive
But Unclassified)
1. Sensitive But Unclassified. Management agreed with the recommendation.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-24-025 ANTI-MONEY 03/24
LAUNDERING/ TERRORIST
FINANCING: TFI’s Ukraine-/ Russia-
related Sanctions Program Complied
With Requirements But Designation
Decision Records Were Not
Consistently Complete and Closed
Timely
1. The Director of Office of Foreign Assets Control update the Office of Global
Targeting standard operating procedures to establish responsibilities and
expected timeframes for review of evidentiary memoranda and Office of
Foreign Assets Control’s Administrative System for Investigations and
Sanctions case files to ensure they are complete and closed timely.
2. Develop and implement a close-out checklist for the evidentiary
memoranda and Office of Foreign Assets Control’s Administrative System
for Investigations and Sanctions case files that encompasses all necessary
documentation to ensure they are complete and closed timely.
Management agreed with the recommendations.
Treasury Office of Inspector General Semiannual Report—March 2025 41
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-CA-24-015 Memorandum - Inquiry on Revolving 03/24
Door Between the Largest Accounting
Firms and the Department of the
Treasury
1. Treasury's Office of the Assistant General Counsel for General Law, Ethics
and Regulation should develop and implement standard operating
procedures, including monitoring, to ensure ethics officials fully utilize the
Ethics Tracker database to track requests, substantive advice and counsel
provided, as well as documentation of final resolution of issues.
2. Treasury's Office of the Assistant General Counsel for General Law, Ethics
and Regulation should consider completing a cost-benefit analysis to
determine if a fully integrated and automated tracking system would
benefit General Law, Ethics and Regulation with its ethics responsibilities.
Management agreed with the recommendations.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-24-029 FINANCIAL MANAGEMENT: Audit of 05/24
Treasury's Compliance With PIIA FOR
Fiscal Year 2023
1. Treasury's Risk and Control Group work with Office of Capital Access
management to consider all information available when answering risk
assessment questions to ensure adequate completion and conclusion of
susceptibility for these program-specific risk assessments.
2. Treasury's Risk and Control Group require Office of Capital Access
management to conduct and provide an updated analysis and justification
memo that takes into consideration known and likely improper payments
made to recipients at all levels as reflected in audits and other information,
that might impact its conclusion on whether payment recapture audits are
cost-effective for its pandemic relief programs. Management agreed with
the recommendations.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-24-030 ANTI-MONEY 08/24
LAUNDERING/ TERRORIST
FINANCING: Audit of FinCEN's
Management of BSA Data - User
Access
1. The Director of FinCEN should implement quality control measures,
including a timeliness metric for form completion, to ensure supervisors
Treasury Office of Inspector General Semiannual Report—March 2025 42
Other Reporting Requirements and Requests
properly review and complete departed employees' out-processing forms.
Management agreed with the recommendation.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-24-032 GOVERNMENT-WIDE FINANCIAL 09/24
SERVICES: Audit of Direct Express
Program Disputes Related to Certain
Cardholder Accounts
1. The Commissioner of the Fiscal Service should ensure that the financial
agency agreement for Direct Express Program cardholder services
includes adequate provisions to help ensure that open service request
notices are reviewed timely and that investigations are concluded within
10 business days per Regulation E or that the cardholder receives
provisional credit no later than the 10th business day; and as
recommended in our July 2019 report, Fiscal Service should use banking
regulator reports to monitor compliance with the financial agency
agreement and service level requirements. Management agreed with the
recommendation.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-24-034 INFORMATION TECHNOLOGY: 09/24
Department of the Treasury Federal
Information Security Modernization
Act Fiscal Year 2024 Performance Audit
for Unclassified Systems (Sensitive But
Unclassified)
1.-6. Sensitive But Unclassified. Management agreed with the
recommendations.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-CA-24-027 CYBERSECURITY/ INFORMATION 09/24
TECHNOLOGY: Assessment of the
Department of the Treasury's Incident
Response Reporting Process for Select
Incidents (Sensitive But Unclassified)
1.-2. Sensitive But Unclassified. Management agreed with the
recommendations.
Treasury Office of Inspector General Semiannual Report—March 2025 43
Other Reporting Requirements and Requests
Other Federal, State, and Local Entities
Fiscal Report Number Report Title Date Issued
Year
2022 OIG-22-033 REVENUE COLLECTION: The U.S. 03/22
Customs and Border Protection’s
Oversight of the Merchandise
Transported In-Bond Program Needs
Improvement to Better Ensure the
Protection of Revenue
1. Ensure Cargo Security and Controls Division (CSC) officials develop and
disseminate performance measures specific to the In-Bond Program so that
CSC, field offices, and port personnel are aware of program expectations.
These measures should be used to regularly assess port performance and
hold ports accountable.
2. Ensure CSC officials develop written procedures for CSC’s oversight of port
performance relating to the In-Bond Program to include, but not be limited
to, regular data analytics and review of Automated Commercial
Environment (ACE) reports.
3. Ensure CSC officials work with Trade Transformation Office (TTO) officials
to implement a central repository to store ACE reports, compliance
examination documentation, and other in-bond related information,
including training materials, maintained by the ports so that CSC can
oversee in-bond activity. Additionally, CSC should regularly notify field
offices and ports that these documents are available in this repository.
4. Ensure CSC officials expand the Self-Inspection Program in-bond Self-
Inspection Worksheet questions to cover key program areas, such as the
ports’ use of ACE reporting to oversee overdue in-bond shipments and
training for Customs and Border Protection (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 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.
7. Ensure CSC officials issue policies and procedures for CSC to regularly
review the monitoring and tracking of in-bond shipments conducted by the
ports.
8. Ensure CSC officials update in-bond regulations to require a standardized
proof of export to be uploaded to ACE for all cargo exported.
Treasury Office of Inspector General Semiannual Report—March 2025 44
Other Reporting Requirements and Requests
9. 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.
10. 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.
11. 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.
12. 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.
13. Ensure CSC and TTO officials require ACE training related to the oversight
of in-bond cargo for all CBP officers.
14. 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.
Management agreed with the recommendations.
Treasury Office of Inspector General Semiannual Report—March 2025 45
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-018 Desk Review of Chippewa Cree Tribe’s 06/23
Use of Coronavirus Relief Fund
Proceeds
1. Treasury OIG should pursue obtaining documentation from the Chippewa
Cree Tribe's management and ensure reporting corrections are made
within the GrantSolutions portal. Further, based on Chippewa Cree Tribe's
responsiveness to Treasury OIG’s requests and its ability to provide
documentation, Treasury OIG should determine if a focused audit is
feasible for grants greater than or equal to $50,000 and direct payments
greater than or equal to $50,000. Management agreed with the
recommendation. ($75,091 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-024 Desk Review of Lancaster County, 06/23
Pennsylvania’s Use of Coronavirus
Relief Fund Proceeds
1. Treasury OIG should pursue obtaining documentation from Lancaster
County personnel and ensure reporting corrections are made. Further,
based on Lancaster County’s responsiveness to Treasury OIG’s requests
and its ability to provide documentation, Treasury OIG should determine if
a full-scope audit is feasible. Management agreed with the
recommendation. ($38,793,071 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-025 Desk Review of State of California’s 07/23
Use of Coronavirus Relief Fund
Proceeds
1. Treasury OIG should confirm that appropriate corrections have been made,
or if not, determine whether the ineligible expenditures have been returned
to Treasury. Management agreed with the recommendation.
($6,952 Questioned Costs)
Treasury Office of Inspector General Semiannual Report—March 2025 46
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-026 Desk Review of Turtle Mountain Band 07/23
of Chippewa Indians’ Use of
Coronavirus Relief Fund Proceeds
(Redacted)
1. Treasury OIG should pursue obtaining supporting documentation from the
Turtle Mountain Band of Chippewa Indians’ (TMBCI) personnel and ensure
reporting corrections are made. Further, based on TMBCI’s responsiveness
to Treasury OIG’s requests and its ability to provide documentation,
Treasury OIG should determine if a full-scope audit is feasible. ($32,333,620
Questioned Costs)
2. Follow-up with TMBCI personnel to obtain sufficient support to quantify
expenditures related to these allegations and determine whether the
amounts represent eligible Coronavirus Relief Fund (CRF) costs.
Management agreed with the recommendations.
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-027 Desk Review of Los Angeles County, 07/23
California’s Use of Coronavirus Relief
Fund Proceeds
1. Treasury OIG should pursue obtaining documentation from LA County
management and ensure reporting corrections are made. Further, based on
LA County’s responsiveness to Treasury OIG’s requests and its ability to
provide documentation, Treasury OIG should determine if a focused audit
is feasible over LA County’s contracts greater than or equal to $50,000 and
aggregate reporting less than $50,000 payment types. Management agreed
with the recommendation. ($249,052,032 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-028 Desk Review of City of Dallas, Texas’ 07/23
Use of Coronavirus Relief Fund
Proceeds
1. Treasury OIG pursue obtaining documentation from Dallas management
related to the aggregate payments to individuals and ensure that
expenditures reported are properly supported. Further, based on Dallas’
responsiveness to Treasury OIG’s requests and its ability to provide
documentation, we recommend Treasury OIG determine if a focused audit
on aggregate payments to individuals is feasible. Management agreed with
the recommendation. ($2,211,594 Questioned Costs)
Treasury Office of Inspector General Semiannual Report—March 2025 47
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-029 Desk Review of State of Florida’s Use 07/23
of Coronavirus Relief Fund Proceeds
1. Treasury OIG should pursue obtaining missing documentation from Florida
management and ensure reporting corrections are made, or whether
recoupment of funds is necessary. Further, based on Florida's
responsiveness to Treasury OIG's requests and its ability to provide
sufficient documentation, Treasury OIG should determine if a full-scope
audit over Florida's use of its CRF proceeds is feasible. Management agreed
with the recommendation. ($893,154,358 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-030 Desk Review of San Bernardino 07/23
County, California’s Use of Coronavirus
Relief Fund Proceeds
1.-3. San Bernardino County management should provide missing supporting
documentation and make necessary reporting corrections. Additionally,
Treasury OIG should determine if a focused audit over grants greater than
or equal to $50,000 is feasible. Management agreed with the
recommendations. ($4,151,612 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-032 Desk Review of Phoenix, Arizona’s Use 07/23
of Coronavirus Relief Fund Proceeds
1. Treasury OIG follow-up with Phoenix management on the finalization of its
reconciliation and reporting corrections. Based on Phoenix management’s
responsiveness to Treasury OIG’s requests, and its ability to provide
sufficient documentation, we recommend that Treasury OIG determine if a
focused audit is feasible for grants greater than or equal to $50,000.
Management agreed with the recommendation. ($147,379 Questioned
Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-033 Desk Review of Pleasant Point Indian 07/23
Reservation, Maine’s Use of
Coronavirus Relief Fund Proceeds
1. Treasury OIG follow-up on necessary reporting corrections for contracts
greater than or equal to $50,000, transfers greater than or equal to $50,000,
and aggregate payments to individuals. Management agreed with the
recommendation. ($339,672 Questioned Costs)
Treasury Office of Inspector General Semiannual Report—March 2025 48
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-034 Desk Review of State of Texas’ Use of 07/23
Coronavirus Relief Fund Proceeds
1. Treasury OIG obtain documentation from Texas management and follow-
up on necessary reporting corrections. Further, based on Texas’
responsiveness to Treasury OIG’s requests and its ability to provide
sufficient documentation, we recommend Treasury OIG determine if a
focused audit is feasible for contracts greater than or equal to $50,000 and
grants greater than or equal to $50,000. Management agreed with the
recommendation. ($17,288,575 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-035 Desk Review of the State of 07/23
Tennessee’s Use of Coronavirus Relief
Fund Proceeds
1. Treasury OIG should pursue obtaining documentation from Tennessee
personnel and ensure reporting corrections are made. Further, based on
Tennessee's responsiveness to Treasury OIG's requests and its ability to
provide documentation and remove ineligible transactions, Treasury OIG
should determine if a focused audit is feasible for grants greater than or
equal to $50,000 and aggregate payments to individuals. Management
agreed with the recommendation. ($1,162,364 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-037 Desk Review of State of Ohio’s Use of 07/23
Coronavirus Relief Fund Proceeds
1.& 2. State of Ohio management should provide missing supporting
documentation and make necessary reporting corrections.
3. Provide missing supporting documentation and make necessary reporting
corrections. Additionally, Treasury OIG should obtain information to
determine if there are other ineligible severance pay transactions in
addition to those already identified as part of the desk review. Management
agreed with the recommendations. ($86,801 Questioned Costs)
Treasury Office of Inspector General Semiannual Report—March 2025 49
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-038 Desk Review of Native Village of Point 07/23
Hope’s Use of Coronavirus Relief Fund
Proceeds
1. Treasury OIG follow-up on the missing documentation and make a
determination whether to conduct a full-scope audit of Point Hope. In
addition, Treasury OIG personnel determine whether to take further action,
up to and including recoupment of Point Hope’s CRF proceeds, based on
the scope limitation and potential noncompliance with the records retention
requirement. Management agreed with the recommendation. ($2,348,064
Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-039 Desk Review of the Commonwealth of 08/23
the Northern Mariana Islands’ Use of
Coronavirus Relief Fund Proceeds
1. Treasury OIG should request missing documentation from the
Commonwealth of the Northern Mariana Islands management and follow-
up on necessary reporting corrections. Further, based on Commonwealth of
the Northern Mariana Islands responsiveness to Treasury OIG’s requests
and its ability to provide sufficient documentation, Treasury OIG should
determine if a full scope audit is feasible. Management agreed with the
recommendation. ($11,146,813 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-040 Desk Review of the Commonwealth of 08/23
Puerto Rico’s Use of Coronavirus Relief
Fund Proceeds
1. Treasury OIG should follow-up to obtain the status of these Single Audits.
Treasury OIG should pursue obtaining missing documentation from Puerto
Rico’s management and follow-up on necessary reporting corrections
within the GrantSolutions portal. Based on Puerto Rico’s responsiveness to
Treasury OIG’s requests and management’s ability to provide
documentation, Treasury OIG should determine if a full scope audit is
feasible. Management agreed with the recommendation. ($33,681,692
Questioned Costs)
Treasury Office of Inspector General Semiannual Report—March 2025 50
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-041 Desk Review of Navajo Nation Tribal 08/23
Government's Use of Coronavirus
Relief Fund Proceeds (Redacted)
1. Treasury OIG should follow-up on Navajo Nation management's corrective
action related to $141,187 in questioned costs reported in Single Audit
finding number 2020-009.
2. Follow-up to obtain the status of the Navajo Nation's 2021 Single Audit.
3.-5. Follow-up with Navajo Nation management to obtain missing
documentation to support expenditures and that Navajo Nation has made
necessary reporting corrections; and determine the feasibility of performing
a focused audit for grants greater than or equal to $50,000.
6. Follow-up with Navajo Nation management to obtain missing
documentation to support expenditures and that Navajo Nation has made
necessary reporting corrections; and determine the feasibility of performing
a focused audit for aggregate payments to individuals with a specific focus
on Navajo Nation's non-payroll Coronavirus Disease 2019 (COVID-19)
hardship claims and payroll expenditures for employees substantially
dedicated to COVID-19 recovery efforts. ($80,844,219 Questioned Costs)
7. Confirm that Navajo Nation management has reversed $(Amount Redacted)
in duplicate hardship check payments that were fraudulently cashed by
tribal citizens and recorded by management within the aggregate payments
to individuals payment type in the Cycle 3 GrantSolutions submission.
8. Ensure Navajo Nation management re-issued $(Amount Redacted) stale-
dated checks before the end of December 31, 2022, and ensure that checks
were cashed by the beneficiaries, or funds are returned to Treasury.
9. Ensure Navajo Nation management has reversed the sub-recipient incurred
costs that they determined to be ineligible as a result of their internal
investigation. Management agreed with the recommendations.
Treasury Office of Inspector General Semiannual Report—March 2025 51
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2023 OIG-CA-23-042 Desk Review of the Commonwealth of 08/23
Virginia’s Use of Coronavirus Relief
Fund Proceeds
1. Treasury OIG should follow-up with the Commonwealth of Virginia
(Virginia) management on necessary reporting corrections. Specifically,
Items Not Listed Above description corrections are needed in the contracts
greater than or equal to $50,000, grants greater than or equal to $50,000,
transfers greater than or equal to $50,000, and direct payments greater than
or equal to $50,000 payment types. In addition, Treasury OIG should pursue
obtaining documentation from Virginia management for contracts greater
than or equal to $50,000, transfers greater than or equal to $50,000, direct
payments greater than or equal to $50,000, aggregate reporting less than
$50,000, and aggregate payments to individuals. Based on Virginia’s
responsiveness to Treasury OIG’s requests and its ability to provide
documentation, Treasury OIG should determine if a focused audit is
feasible for contracts, transfers, and direct payments greater than or equal
to $50,000, as well as aggregate reporting less than $50,000 and aggregate
payments to individuals. In addition, Treasury OIG should work with
Virginia management to determine whether there are any additional costs
attributable to Virginia Department of Emergency Management and Virginia
Department of Health and to ensure that Virginia management makes any
necessary corrections to those balances. Also, Treasury OIG should follow-
up to obtain the status of the 2021 Single Audit Annual Comprehensive
Financial Report finding. Management agreed with the recommendation.
($870,559,763 Questioned Costs)
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-CA-24-003 City of Springfield, Massachusetts – 10/23
Use of Coronavirus Relief Fund
Proceeds
1. Treasury’s Acting Chief Recovery Officer should work with Treasury OIG to
obtain adequate documentation from the Commonwealth of Massachusetts
for the Department of Health and Human Services $300,000 in expenditures
or begin recoupment proceedings for the disallowed costs. Management
agreed with the recommendation. ($300,000 Questioned Costs)
Treasury Office of Inspector General Semiannual Report—March 2025 52
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-24-026 REVENUE COLLECTION: CBP Needs 03/24
to Enhance its Monitoring and
Tracking of the Outcomes of
Investigations into the Underpayment
of Duties
1. Ensure Office of Trade (OT) and Office of Field Operations (OFO) officials
assess the need for performance metrics once the Commercial Enforcement
Analysis and Response (CEAR) standard operating procedures (SOP) are
updated.
2. Ensure OT and OFO officials responsible for oversight of the CEAR process
review and update the CEAR SOP to ensure the SOPs continue to be
relevant and effective in meeting objectives and addressing risks.
3. Ensure Trade Remedy Law Enforcement Directorate (TRLED) staff
coordinates with appropriate internal offices to track revenue recovered
from the e-Allegations program and uses the information to evaluate the
program’s performance in achieving objectives.
4. Ensure that TRLED officials enhance procedures to ensure that the statuses
of e-Allegations cases are timely, accurate, and complete in its information
system, Analysis and Referral Management system; monitor those
procedures to ensure that they are working as intended; and assess the
need for related training. Management agreed with the recommendations.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-CA-24-019 Desk Review of Bucks County, 08/23
Pennsylvania's Use of Coronavirus
Relief Fund Proceeds
1. Treasury OIG should confirm the transactions noted as unsupported or
ineligible expenditures within Contracts greater than or equal to $50,000,
Aggregate Reporting less than $50,000, and Aggregate Payments to
Individuals are recouped or reallocated to other eligible uses by Bucks
County in conformity with Treasury's Guidance. Based on Bucks County's
responsiveness to Treasury's OIG's requests and its ability to provide
sufficient documentation, we recommend Treasury OIG determine the
feasibility of conducting an audit for Contract greater than or equal to
$50,000, Aggregate Reporting less than $50,000, and Aggregate Payments
to Individuals.
Other matters throughout the course of our desk review, which warrant
recommendations to Treasury OIG for additional action. Treasury OIG
should:
Treasury Office of Inspector General Semiannual Report—March 2025 53
Other Reporting Requirements and Requests
Request Bucks County perform an assessment over whether there were any
additional indirect costs claimed within its Contracts greater than or equal
to $50,000 CRF submission, and identify those for removal and repayment
to Treasury, as applicable.
Bucks County awarded approximately 1,581 businesses a total of
$25,668,250 in granted funds within the Bucks Back to Work grant program,
including our reported Aggregate Reporting less than $50,000 questioned
costs of $5,000. Since the IPA identified unsupported questioned costs
within the Bucks Back to Work grant, we tested, the IPA recommends
Treasury OIG determine the feasibility of performing additional follow-up
with Bucks County to determine if there were other instances of
unsupported balances within this grant program.
Determine the feasibility of following up on the remaining balance of
$72,353 within Aggregate Payments to Individuals for the Recorder of
Deeds and Prothonotary Departments and determine if it is necessary to
question that balance as ineligible as well.
Request Bucks County perform an assessment over claimed non-
substantially dedicated payroll costs to determine if there were any
additional departments with employees who were not working on COVID-
19 related tasks and identify any potential ineligible costs. Management
agreed with the recommendations.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-CA-24-023 City of Springfield, Massachusetts – 08/24
Use of Coronavirus Relief Fund
Proceeds
1. This is a recoupment. Management agreed with the recommendation.
Treasury Office of Inspector General Semiannual Report—March 2025 54
Other Reporting Requirements and Requests
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-CA-24-028 Desk Review of Bergen County, New 09/24
Jersey's Use of Coronavirus Relief
Fund Proceeds
1. Treasury OIG should confirm if the transactions noted as unsupported
expenditures within Aggregate Reporting less than $50,000 can be
supported. If support is not provided, Treasury OIG should recoup the
funds or request that Bergen County management provide support for
replacement expenses, not previously charged, that were eligible during
the CRF period of performance. Further, based on Bergen County's
responsiveness to Treasury OIG's requests and its ability to provide
sufficient documentation and/or replace unsupported transactions charged
to the CRF with valid expenditures, we recommend Treasury OIG determine
the feasibility of conducting an audit for the Aggregate Reporting less than
$50,000 payment type. Management agreed with the recommendation.
Fiscal Report Number Report Title Date Issued
Year
2024 OIG-CA-24-029 Desk Review of Emergency Rental 09/24
Assistance Payments Made by the City
of Houston, TX and Harris County, TX
1. Office of Capital Access (OCA) management should require Houston's and
Harris County's management to take appropriate and timely corrective
actions to (a) determine if payments related to the total population of
1,797 Emergency Rental Assistance (ERA)1 household address groupings
with potential duplicative assistance totaling approximately $20 million as
of December 31, 2021, from which Treasury OIG identified $98,242 in
questioned costs from a sample, were made to eligible beneficiaries in the
correct amounts, (b) identify whether additional ERA1 ineligible and
duplicate payments occurred after December 31, 2021 and, if applicable,
provide the amount of such payments, and (c) identify whether ineligible
and duplicate payments were made during the entire ERA2 award period of
performance and, if applicable, provide the amount of such payments. OCA
should require corrected ERA1 and ERA2 reports from Houston and Harris
County based on the results of the review. For any ERA1 payments
determined to be ineligible or duplicative, OCA should ensure that the
grantees return funds to Treasury. For any ERA2 payments determined to
be ineligible or duplicative, OCA should ensure that the grantees return
funds to Treasury or reimburse the grantees' ERA2 programs with non-
Federal funds, as appropriate.
Treasury Office of Inspector General Semiannual Report—March 2025 55
Other Reporting Requirements and Requests
2. Develop, document, and communicate to Treasury OIG OCA's processes to
monitor grantees for overpayments and duplicate payments, track
grantees' recharacterizations, and ensure data quality for household
addresses provided by grantees.
3. Provide technical advice and counsel to all grantees and Treasury OIG
about the use of funds in circumstances where a landlord and a tenant are
related. While OCA concurred with our recommendations and its planned
corrective actions meet the intent of our recommendations, management
did not provide an implementation date for its planned corrective action for
our third recommendation regarding familial tenant/landlord relationships.
Management agreed with the recommendations.
Treasury Office of Inspector General Semiannual Report—March 2025 56
Other Reporting Requirements and Requests
Closed Investigations of Senior Government Employees Not
Publicly Disclosed
October 1, 2024, through March 31, 2025
The Office of Inspector General (OIG) closed four (4) investigations involving senior
Government employees during the period that were not publicly disclosed. All four
instances of misconduct by senior Government employees were unsubstantiated.
Subsequently, these matters were not referred to Department of Justice (DOJ) for
prosecution.
Allegation/Disposition
On October 7, 2024, OIG completed its report of investigation for a case
initiated upon receipt of a complaint alleging that an identified employee from
the Office of the Director of National Intelligence (ODNI), on Joint Duty
Appointment to the Office of Intelligence and Analysis (OIA), was involved in
an inappropriate negotiation and attempted procurement of computer
software, sought outside employment during official work travel, failed to
disclose outside employment, committed OIA to a $750,000 pilot program
despite not being a Contracting Officer, and committed timecard fraud. The
OIG unsubstantiated this investigation through interviewing OIA personnel,
obtaining and reviewing records including OIA correspondence, ODNI public
financial disclosure report(s), WebTA timesheets, Virtual Private Network
(VPN) logs designed to encrypt data while online, and badge access logs for
Treasury facilities in the District of Columbia and Virginia. This matter was not
referred to the DOJ.
Unsubstantiated
On March 18, 2025, the OIG completed its report of investigation for a case
initiated upon receiving an anonymous complaint alleging that an identified
Bureau of Engraving and Printing (BEP) employee directed federal
government contracts with other federal agencies to companies owned by the
employee’s brother and wife, who gained an unfair advantage in securing
government contracts by receiving confidential or sensitive contract
information from the BEP employee. The OIG unsubstantiated this allegation
Treasury Office of Inspector General Semiannual Report—March 2025 57
Other Reporting Requirements and Requests
through interviews and document reviews. This matter was not referred to the
DOJ.
Unsubstantiated
On February 21, 2025, the OIG completed its report of investigation for a case
initiated upon receiving a complaint alleging a potential conflict of interest
between employees of the Bureau of Engraving and Printing (BEP) and a
subcontractor. The complaint further alleged that personal relationships exist
between BEP employees and the BEP subcontractor, specifically, a BEP
employee served as the Alternate Contracting Officer Representative and held
investments in the subcontractor’s Employee Stock Ownership Plan, where the
BEP employee was previously employed. Additionally, BEP allegedly identified
contract deficiencies indicating the subcontractor had failed to fulfill contract
terms. The OIG unsubstantiated this allegation through coordinated efforts with
the BEP Office of the Chief Counsel through records’ reviews indicating the
individual had recused themself from any official responsibilities related to the
administration of the BEP contract. Additionally, interviews and record reviews
indicated the subcontractor did fulfill the contract agreement. This matter was
not referred to the DOJ.
Unsubstantiated
On October 1, 2024, the OIG completed its report of investigation for a case
initiated upon receipt of a complaint from the Office of the Comptroller of the
Currency (OCC) alleging that an OCC employee made inappropriate or
unwanted verbal advances and comments to current and past OCC
employees. The OIG interviewed OCC employees, as well as individuals who
worked for the banks where the employee was stationed. The investigation
determined the employee did not make unwanted verbal advances, as the
employee initiated unsolicited conversation regarding a past incident which
occurred while employed at a different agency. The OIG has provided a report
to the OCC. This matter was not referred to the DOJ.
Unsubstantiated
Treasury Office of Inspector General Semiannual Report—March 2025 58
Other Reporting Requirements and Requests
Trafficking Victims Prevention and Protection Reauthorization
Act of 2022
October 1, 2024, through March 31, 2025
Number of Suspected Violation Reported: 0
Number of Investigations: 0
Status and Outcome of Investigations: N/A
Recommended Actions to Improve: None
No-Knock Entry Reporting
October 1, 2024, through March 31, 2025
Per Executive Order 14074, Section 10(c), The heads of Federal Law Enforcement
Agencies (LEAs) shall issue annual reports to the President—and post the reports
publicly—setting forth the number of no-knock entries that occurred pursuant to
judicial authorization; the number of no-knock entries that occurred pursuant to
exigent circumstances; and disaggregated data by circumstances for no-knock entries
in which a law enforcement officer or other person was injured in the course of a no-
knock entry. Executive Order 14074 was rescinded as of January 20, 2025. Prior to the
rescission, Treasury OIG had no updates to report.
Summary of Instances of Whistleblower Retaliation
October 1, 2024, through March 31, 2025
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.
Treasury Office of Inspector General Semiannual Report—March 2025 59
Other Reporting Requirements and Requests
Summary of Attempts to Interfere With Treasury OIG
Independence, Including Instances Where Information or
Assistance Request was Refused
October 1, 2024, through March 31, 2025
There were no attempts made to resist, delay, or restrict Treasury OIG access to
records or other information and no instances where an information or assistance
request was refused during this reporting period.
Treasury Office of Inspector General Semiannual Report—March 2025 60
Other Reporting Requirements and Requests
Listing of Audit Products Issued
October 1, 2024, through March 31, 2025
Office of Audit
Report Title Report Number
October 2024
Letter to the Honorable Michael Regan, OIG-CA-25-001
Administrator, Environmental Protection
Agency and Chairperson, Gulf Coast Ecosystem
Restoration Council: 2025 Management and
Performance Challenges
Desk Review of the State of Georgia’s Use of OIG-CA-25-002
Coronavirus Relief Fund Proceeds
Management and Performance Challenges OIG-CA-25-003
Facing the Department of the Treasury FY 2025
FINANCIAL MANAGEMENT: Report on the OIG-25-001
Bureau of Fiscal Service's Description of its
Administrative Resource Center Shared
Services System and the Suitability of the
Design and Operating Effectiveness of its
Controls for the Period July 1, 2023, to June 30,
2024
Desk Review of Baltimore County, Maryland's OIG-CA-25-004
Use of Coronavirus Relief Fund Proceeds
Desk Review of the State of North Carolina's OIG-CA-25-005
Use of Coronavirus Relief Fund Proceeds
FINANCIAL MANAGEMENT: Audit of the OIG-25-002
United States Mint's Schedules of Custodial
Deep Storage Gold and Silver Reserves as of
September 30, 2024, and 2023
Treasury Office of Inspector General Semiannual Report—March 2025 61
Other Reporting Requirements and Requests
FINANCIAL MANAGEMENT: Audit of the OIG-25-003
Department of the Treasury's Schedule of
United States Gold Reserves Held by Federal
Reserve Banks as of September 30, 2024, and
2023
FINANCIAL MANAGEMENT: Report on the OIG-25-004
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, 2023, to July 31, 2024
FINANCIAL MANAGEMENT: Report on the OIG-25-005
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, 2023, to July 31, 2024
Report Title Report Number
November 2024
FINANCIAL MANAGEMENT: Audit of the OIG-25-006
Federal Financing Bank’s Financial Statements
for Fiscal Years 2024 and 2023
Desk Review of the State of West Virginia's Use OIG-CA-25-007
of Coronavirus Relief Fund Proceeds, Redacted
Emergency Rental Assistance Program (ERA2) – OIG-CA-25-008
Questioned Cost Finding, State of Washington,
Redacted
Emergency Rental Assistance Program (ERA2) – OIG-CA-25-009
Questioned Cost Finding, Thurston County,
Washington
CYBERSECURITY/INFORMATION OIG-25-007
TECHNOLOGY: Audit of the Department of the
Treasury’s Cybersecurity Information Sharing
FINANCIAL MANAGEMENT: Audit of the Gulf OIG-25-008
Coast Ecosystem Restoration Council's
Financial Statements for Fiscal Years 2024 and
2023
FINANCIAL MANAGEMENT: Audit of the OIG-25-009
Department of the Treasury's Consolidated
Treasury Office of Inspector General Semiannual Report—March 2025 62
Other Reporting Requirements and Requests
Financial Statements for Fiscal Years 2024 and
2023
CORONAVIRUS DISEASE 2019 PANDEMIC OIG-25-010
RELIEF PROGRAMS: Audit of Air Carrier Worker
Support Certifications - Sky Chefs, Inc.,
Redacted
CORONAVIRUS DISEASE 2019 PANDEMIC OIG-25-011
RELIEF PROGRAMS: Audit of Air Carrier Worker
Support Certifications - AerSale, Inc., Redacted
Report Title Report Number
December 2024
Desk Review of the Government of Guam’s Use OIG-CA-25-010
of Coronavirus Relief Fund Proceeds
Overseas Contingency Operations - Summary OIG-CA-25-011
of Work Performed by the Department of the
Treasury Related to Terrorist Financing and
Anti-Money Laundering for the Fourth Quarter
Fiscal Year 2024
Treasury Office of Inspector General Semiannual Report—March 2025 63
Other Reporting Requirements and Requests
Desk Review of the Commonwealth of OIG-CA-25-012
Pennsylvania’s Use of Coronavirus Relief Fund
Proceeds
FINANCIAL MANAGEMENT: Management OIG-25-012
Letter for the Audit of the Department of the
Treasury's Consolidated Financial Statements
for Fiscal Years 2024 and 2023
FINANCIAL MANAGEMENT: Management OIG-25-013
Letter for the Deficiencies in Internal Control
over Cash Management Systems at the Bureau
of the Fiscal Service Identified during the Audit
of the Department of the Treasury's
Consolidated Financial Statements for Fiscal
Years 2024 and 2023
FINANCIAL MANAGEMENT: Audit of the Office OIG-25-014
of D.C. Pensions' Financial Statements for
Fiscal Years 2024 and 2023
FINANCIAL MANAGEMENT: Audit of the OIG-25-015
United States Mint's Financial Statements for
Fiscal Years 2024 and 2023
FINANCIAL MANAGEMENT: Management OIG-25-016
Letter for the Audit of the United States Mint's
Financial Statements for Fiscal Years 2024 and
2023
Desk Review of the City of Fresno, California’s OIG-CA-25-013
Use of Coronavirus Relief Fund Proceeds
Desk Review of Dallas County, Texas’ Use of OIG-CA-25-014
Coronavirus Relief Fund Proceeds
Desk Review of the State of Mississippi’s Use of OIG-CA-25-015
Coronavirus Relief Fund Proceeds
Desk Review of State of Arizona's Use of OIG-CA-25-016
Coronavirus Relief Fund Proceeds
FINANCIAL MANAGEMENT: Audit of the OIG-25-017
Bureau of Engraving and Printing’s Financial
Statements for Fiscal Years 2024 and 2023
Treasury Office of Inspector General Semiannual Report—March 2025 64
Other Reporting Requirements and Requests
FINANCIAL MANAGEMENT: Management OIG-25-018
Letter for the Audit of the Bureau of Engraving
and Printing’s Financial Statements for Fiscal
Years 2024 and 2023
FINANCIAL MANAGEMENT: Audit of the OIG-25-019R
Department of the Treasury Forfeiture Fund's
Financial Statements for Fiscal Years 2024 and
2023
Desk Review of the District of Columbia’s Use OIG-CA-25-017
of Coronavirus Relief Fund Proceeds
Desk Review of the State of Utah's Use of OIG-CA-25-018
Coronavirus Relief Fund Proceeds
Desk Review of the Commonwealth of OIG-CA-25-019
Massachusetts’ (Massachusetts) Use of
Coronavirus Relief Fund Proceeds
Desk Review of the State of North Dakota's Use OIG-CA-25-020
of Coronavirus Relief Fund Proceeds
Desk Review of the State of New Hampshire’s OIG-CA-25-021
Use of Coronavirus Relief Fund Proceeds
Desk Review of Oklahoma County, Oklahoma's OIG-CA-25-022
Use of Coronavirus Relief Fund Proceeds
Desk Review of the State of Oklahoma's Use of OIG-CA-25-023
Coronavirus Relief Fund Proceeds
Desk Review of the Kiowa Tribe of Oklahoma’s OIG-CA-25-024
Use of Coronavirus Relief Fund Proceeds
Desk Review of the State of Washington's Use OIG-CA-25-025
of Coronavirus Relief Fund Proceeds
Desk Review of the State of New Jersey's Use OIG-CA-25-026
of Coronavirus Relief Fund Proceeds
Desk Review of the Native Village of Selawik’s OIG-CA-25-027
Use of Coronavirus Relief Fund Proceeds
Desk Review of the State of Nebraska’s Use of OIG-CA-25-028
Coronavirus Relief Fund Proceeds
Treasury Office of Inspector General Semiannual Report—March 2025 65
Other Reporting Requirements and Requests
Desk Review of the State of Connecticut’s Use OIG-CA-25-029
of Coronavirus Relief Fund Proceeds
Emergency Rental Assistance (ERA1) Program OIG-CA-25-030
Notice of Recoupment – State of Alaska,
Redacted
FINANCIAL MANAGEMENT: Audit of the OIG-25-020
Community Development Financial Institutions
Fund’s Financial Statements for Fiscal Years
2024 and 2023
FINANCIAL MANAGEMENT: Audit of the Office OIG-25-021
of the Comptroller of the Currency's Financial
Statements for Fiscal Years 2024 and 2023
FINANCIAL MANAGEMENT: Audit of the OIG-25-022
Exchange Stabilization Fund's Financial
Statements for Fiscal Years 2024 and 2023
FINANCIAL MANAGEMENT: Audit of the OIG-25-023
Alcohol and Tobacco Tax and Trade Bureau’s
Financial Statements for Fiscal Years 2024 and
2023
Checklist – ERA1 OIG Notice of Recoupment, OIG-CA-25-031
Internal Memorandum, Not Publicly Disclosed
Checklist – ERA2 OIG Questioned Cost Finding, OIG-CA-25-032
Internal Memorandum, Not Publicly Disclosed
Report Title Report Number
January 2025
2024 Treasury OIG Charge Card Annual Report OIG-CA-25-033
Transmittal to OMB
2024 Annual Report (Gulf Coast) on Charge OIG-CA-25-034
Card Status of Recommendations Transmittal
to OMB
Memorandum for Loren J. Sciurba, Treasury OIG-CA-25-035
Deputy Inspector General: Semi-Annual Joint
Purchase and Integrated Card Violation Report
Treasury Office of Inspector General Semiannual Report—March 2025 66
Other Reporting Requirements and Requests
(April 1, 2024–September 30, 2024), Internal
Memorandum, Not Publicly Disclosed
Report Title Report Number
February 2025
Emergency Rental Assistance Program (ERA1) – OIG-CA-25-036
Notice of Recoupment, Harris County, Texas
Overseas Contingency Operations - Summary OIG-CA-25-037
of Work Performed by the Department of the
Treasury Related to Terrorist Financing and
Anti-Money Laundering for the First Quarter
Fiscal Year 2025
Report Title Report Number
March 2025
Complaint Referral Memorandum – United OIG-CA-25-038
States Mint’s Congressional Award Medal Loss
Safety and Soundness: Failed Bank Limited OIG-25-024
Review – First National Bank of Lindsay
Council of Inspectors General on Financial Oversight
Report Title Report Number
December 2024
Council of the Inspectors General on Financial No Report Number
Oversight 2024 Presidential Transition
Handbook
Treasury Office of Inspector General Semiannual Report—March 2025 67
Other Reporting Requirements and Requests
Audit Reports Issued With Questioned Costs
October 1, 2024, through March 31, 2025
Total No. Total Total
of Questioned Unsupported
Category Reports Costs Costs
For which no management decision had been made by
beginning of reporting period 25 $2,238,488,951 $2,238,488,951
Which were issued during the reporting period 26 $1,852,168,042 $1,852,168,042
Subtotals 51 $4,090,656,993 $4,090,656,993
For which a management decision was made during
the reporting period 2 $438,465 $438,465
Dollar value of disallowed costs 2 $438,465 $438,465
Dollar value of costs not disallowed 0 $0 $0
For which no management decision was made by the
end of the reporting period 49 $4,090,218,528 $4,090,218,528
For which no management decision was made within 6
months of issuance 23 $2,238,050,486 $2,238,050,486
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 2025 68
Other Reporting Requirements and Requests
Audit Reports Issued With Recommendations that Funds Be
Put to Better Use
October 1, 2024, through March 31, 2025
Total Revenue
No. of Enhancemen
Category Reports Total Savings t
For which no management decision had
been made by beginning of reporting period 0 $0 $0 $0
Which were issued during the reporting
period 0 $0 $0 $0
Subtotals 0 $0 $0 $0
For which a management decision was
made during the reporting period 0 $0 $0 $0
Dollar value of recommendations agreed
to by management 0 $0 $0 $0
Dollar value based on proposed
management action 0 $0 $0 $0
Dollar value based on proposed
legislative action 0 $0 $0 $0
Dollar value of recommendations not
agreed to by management 0 $0 $0 $0
For which no management decision was
made by the end of the reporting period 0 $0 $0 $0
For which no management decision was
made within 6 months of issuance 0 $0 $0 $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.
Treasury Office of Inspector General Semiannual Report—March 2025 69
Other Reporting Requirements and Requests
Reports for Which No Management Comment was Returned
Within 60 Days
As of March 31, 2025
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, 2025
As of the end of this semiannual reporting period, Treasury and OIG management
had not decided on recommendations with monetary benefits for 23 reports issued
over 6 months:
Desk Review of Chippewa Cree Tribe’s Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-018, 6/26/2023) $75,091 Questioned Costs
Desk Review of Lancaster County, Pennsylvania’s Use of Coronavirus Relief Fund
Proceeds (OIG-CA-23-024, 6/29/2023) $38,793,071 Questioned Costs
Desk Review of State of California’s Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-025, 7/7/2023) $6,952 Questioned Costs
Desk Review of Turtle Mountain Band of Chippewa Indians’ Use of Coronavirus
Relief Fund Proceeds (Redacted) (OIG-CA-23-026, 7/7/2023) $32,333,620 Questioned
Costs
Desk Review of Los Angeles County, California’s Use of Coronavirus Relief Fund
Proceeds (OIG-CA-23-027, 7/7/2023) $249,052,032 Questioned Costs
Desk Review of City of Dallas, Texas’ Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-028, 7/20/2023) $2,211,594 Questioned Costs
Treasury Office of Inspector General Semiannual Report—March 2025 70
Other Reporting Requirements and Requests
Desk Review of State of Florida’s Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-029, 7/20/2023) $893,154,358 Questioned Costs
Desk Review of San Bernardino County, California’s Use of Coronavirus Relief Fund
Proceeds (OIG-CA-23-030, 7/20/2023) $4,151,612 Questioned Costs
Desk Review of Phoenix, Arizona’s Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-032, 7/21/2023) $147,379 Questioned Costs
Desk Review of Pleasant Point Indian Reservation, Maine’s Use of Coronavirus Relief
Fund Proceeds (OIG-CA-23-033, 7/21/2023) $339,672 Questioned Costs
Desk Review of State of Texas’ Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-034, 7/21/2023) $17,288,575 Questioned Costs
Desk Review of the State of Tennessee’s Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-035, 7/26/2023) $1,162,364 Questioned Costs
Desk Review of State of Ohio’s Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-037, 7/27/2023) $86,801 Questioned Costs
Desk Review of Native Village of Point Hope’s Use of Coronavirus Relief Fund
Proceeds (OIG-CA-23-038, 7/28/2023) $2,348,064 Questioned Costs
Desk Review of the Commonwealth of the Northern Mariana Islands Use of
Coronavirus Relief Fund Proceeds (OIG-CA-23-039, 8/8/2023) $11,146,813
Questioned Costs
Desk Review of the Commonwealth of Puerto Rico’s Use of Coronavirus Relief Fund
Proceeds (OIG-CA-23-040, 8/8/2023) $33,681,692 Questioned Costs
Desk Review of Navajo Nation Tribal Government’s Use of Coronavirus Relief Fund
Proceeds (Redacted) (OIG-CA-23-041, 8/8/2023) $80,844,218 Questioned Costs
Desk Review of the Commonwealth of Virginia’s Use of Coronavirus Relief Fund
Proceeds (OIG-CA-23-042, 8/9/2023) $870,559,763 Questioned Costs
Treasury Office of Inspector General Semiannual Report—March 2025 71
Other Reporting Requirements and Requests
City of Springfield, Massachusetts - Use of Coronavirus Relief Fund Proceeds
(OIG-CA-24-003,10/17/2023) $300,000 Questioned Costs
Desk Review of Bucks County, Pennsylvania’s Use of Coronavirus Relief Fund
Proceeds (OIG-CA-24-019, 8/1/2024) $111,423 Questioned Costs
Emergency Rental Assistance (ERA1) Program Notice of Recoupment - Thurston
County, Washington (Redacted) (OIG-CA-24-019, 8/14/2024) $100,150 Questioned
Costs
Desk Review of Bergen County, New Jersey's Use of Coronavirus Relief Fund
Proceeds (OIG-CA-24-028, 9/20/2024) $57,000 Questioned Costs
Desk Review of Emergency Rental Assistance Payments Made by the City of
Houston, TX and Harris County, TX (OIG-CA-24-029, 9/26/2024) $99,242 Questioned
Costs
Significant Revised Management Decisions
October 1, 2024, through March 31, 2025
There were no significant revised management decisions during the reporting period.
Significant Disagreed Management Decisions
October 1, 2024, through March 31, 2025
There were no significant disagreed management decisions during the reporting
period.
Treasury Office of Inspector General Semiannual Report—March 2025 72
Other Reporting Requirements and Requests
Peer Reviews
October 1, 2024, through March 31, 2025
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
Energy OIG. In its report dated November 27, 2024, the U.S. Department of Energy
OIG rendered a Pass rating for our system of quality control in effect for the year
ended March 31, 2024. External audit peer review reports of our office are available
on Treasury OIG’s website.
Treasury OIG’s review of the U.S. Environmental Protection Agency OIG’s system of
quality control was ongoing as of the end of the March 31, 2025, reporting period.
Office of Investigations
Council of the Inspectors General on Integrity and Efficiency mandates that the
investigative law enforcement operations of all OIGs undergo peer reviews every
three years to ensure compliance with (1) Council of the Inspectors General on
Integrity and Efficiency investigations quality standards and (2) the relevant
guidelines established by the Office of the Attorney General of the United States.
In its report dated November 6, 2024, the U.S. Department of Education, Office of
Inspector General found our office to be in compliance with all relevant guidelines for
the review period.
Treasury Office of Inspector General Semiannual Report—March 2025 73
Other Reporting Requirements and Requests
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 six month period, the Office
of Inspector General of the Federal Banking Agency must (1) identify the
estimated losses that have been incurred by the DIF during that six 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 six month period, we are also required to prepare a report to the failed
institutions’ regulator and the Congress that identifies (1) any loss that
warrants an in--depth review, together with the reasons why such a review is
warranted and when the review will be completed; and (2) any losses where
we determine no in--depth review is warranted, together with an explanation
of how we came to that determination.
During this reporting period, there were no failed banks supervised by the OCC
with material losses to the DIF. There was however, one bank that failed during
the period with a nonmaterial loss to the DIF. First National Bank of Lindsay,
Lindsay, Oklahoma was closed on October 18, 2024, with an estimated loss to
the DIF $42.3 million. (OIG-25-024)
Treasury Office of Inspector General Semiannual Report—March 2025 74
Other Reporting Requirements and Requests
Overseas Contingency Operations 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 disrupting the
Islamic State of Iraq and Syria’s (ISIS) finances. The memorandums included
specific examples of activities to disrupt ISIS’s financing, information on
Treasury programs that combat terrorist financing, and work we performed or
plan to perform to review these programs. (OIG-CA-25-011, OIG-CA-25-037)
Annual Reports on the Status of Implementation of Purchase and
Travel Card Audit Recommendations
We provided annual reports on the progress made by the Department of the
Treasury and by the Gulf Coast Ecosystem Restoration 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
the Department of the Treasury or the Council and did not have anything to
report for fiscal year 2024. (OIG-CA-25-033, OIG-CA-25-034)
Treasury Office of Inspector General Semiannual Report—March 2025 75
References to the Inspector General Act
Section Requirement Page
Section Review of legislation and regulations 45
404(a)(2)
Section Significant problems, abuses, and deficiencies 5-32
405(b)(1)
Section Recommendations with respect to significant problems, abuses, and 5-32
405(b)(2) deficiencies
Section Significant unimplemented recommendations described in previous semiannual 36-57
405(b)(3) reports
Section Matters referred to prosecutive authorities 45
405(b)(4)
Section Summary of instances where information was refused 61
406(c)(2)
Section List of audit reports 62-68
405(b)(6)
Section Summary of significant reports 5-32
405(b)(7)
Section Audit reports with questioned costs 69
405(b)(8)
Section Recommendations that funds be put to better use 70
405(b)(9)
Section Summary of each audit, inspection, and evaluation report issued before the 36-59
405(b)(8)(A) beginning of the reporting period for which no management decision was made
Section Summary of each audit, inspection, and evaluation report issued for which no 71
405(b)(10)(B) management comment was returned within 60 days
Section Summary of each audit, inspection, and evaluation report issued before the 71-73
405(b)(10)(C) beginning of the reporting period for which there are outstanding
unimplemented recommendations, including the aggregate potential cost
savings
Section Significant revised management decisions made during the reporting period 73
405(b)(11)
Section Management decisions with which the Inspector General is in disagreement 73
405(b)(12)
Section Instances of unresolved Federal Financial Management Improvement Act 8
405(b)(13) noncompliance
Section Results of peer reviews conducted of Treasury OIG by another OIG 73-74
405(b)(14)
Section List of outstanding recommendations from peer reviews 73-74
405(b)(15)
Section List of peer reviews conducted by Treasury OIG, including a list of outstanding 73-74
405(b)(16) recommendations from those peer reviews
Section Statistics for the period related to the number of (A) investigative reports issued, 45
405(b)(17)(A- (B) persons referred to the Department of Justice for criminal prosecution,
D) (C) persons referred to state and local authorities for criminal prosecution, and
(D) criminal indictments/informations
Section Description of metrics used to develop investigative statistics in Section 5(a)(17) 45
405(b)(18)
Section Summary of each investigation involving a senior Government employee where 58-59
405(b)(19) allegation of misconduct was substantiated
Treasury Office of Inspector General Semiannual Report—March 2025 45
References to the Inspector General Act
Section Instances of whistleblower retaliation 60
405(b)(20)
Section Summary of attempts to interfere with Treasury OIG independence 61
405(b)(21)
Section Description of each inspection, evaluation, and audit that was closed and not 62-68
405(b)(22)(A) publicly disclosed
Section Description of each investigation closed, involving a senior Government 58-59
405(b)(22)(B) employee, that was not publicly disclosed
Section 405(e) Serious or flagrant problems, abuses, or deficiencies N/A
Section Report to Secretary when information or assistance is unreasonably refused 61
406(c)(2)
Treasury Office of Inspector General Semiannual Report—March 2025 77
Abbreviations
ACE Automated Commercial Environment
AHFC Alaska Housing Finance Corporation
Aggregate Reporting Aggregate Reporting less than $50,000
API Aggregate Payments to Individuals, in any amount
ARP American Rescue Plan Act of 2021
ARC Administrative Resource Center
Arizona the State of Arizona
BEP Bureau of Engraving and Printing
CAA, 2021 Consolidated Appropriations Act, 2021
CARES Act Coronavirus Aid, Relief, and Economic Security Act
CAP Congressional Award Program
CBP Customs and Border Protection
CEAR Commercial Enforcement Analysis and Response
CIGIE Council of the Inspectors General on Integrity and Efficiency
CISA Cybersecurity Information Sharing Act
Connecticut State of Connecticut
Contracts Contracts greater than or equal to $50,000
Council Gulf Coast Ecosystem Restoration Council
COVID-19 Coronavirus Disease 2019
CRF Coronavirus Relief Fund
CSC Cargo Security and Controls Division
CY Calendar Year
DATA Act Digital Accountability and Transparency Act
DC District of Columbia
DIF Deposit Insurance Fund
Direct Payments Direct Payments greater than or equal to $50,000
DO Departmental Offices
DOJ Department of Justice
ERA Emergency Rental Assistance
FDIC Federal Deposit Insurance Corporation
FFMIA Federal Financial Management Improvement Act of 1996
FinCEN Financial Crimes Enforcement Network
Fiscal Service Bureau of the Fiscal Service
FRB Federal Reserve Board
GAO Government Accountability Office
Georgia State of Georgia
Harris County Harris County, Texas
IPA Independent Public Accounting firm
Treasury Office of Inspector General Semiannual Report—March 2024 78
Abbreviations
ISIS Islamic State of Iraq and Syria
IRS Internal Revenue Service
Kiowa Tribe Kiowa Tribe of Oklahoma
LEA Law Enforcement Agencies
Loans Loans greater than or equal to $50,000
Nebraska State of Nebraska
New Hampshire State of New Hampshire
New Jersey the State of New Jersey
NOAA National Oceanic and Atmospheric Administration
North Carolina State of North Carolina
North Dakota State of North Dakota
Massachusetts Commonwealth of Massachusetts
Mint United States Mint
Mississippi the State of Mississippi
OCA Office of Capital Access
OCC Office of the Comptroller of the Currency
ODNI Office of the Director of National Intelligence
OFO Office of Field Operations
OIA Office of Intelligence and Analysis
OIG Office of Inspector General
Oklahoma State of Oklahoma
Oklahoma County Oklahoma County, Oklahoma
OMB Office of Management and Budget
OT Office of Trade
Pennsylvania Commonwealth of Pennsylvania
P.L. Public Law
PRAC Pandemic Response Accountability Committee
PSP1 Air Carrier Payroll Support Program
PSP2 Payroll 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
Science Program Gulf Coast Ecosystem Restoration Science, Observation,
Monitoring, and Technology Program
SOP standard operating procedures
Thurston County Thurston County, Washington
TIGTA Treasury Inspector General for Tax Administration
Treasury Office of Inspector General Semiannual Report—March 2024 79
Abbreviations
TMBCI Turtle Mountain Band of Chippewa Indians
Transfers Transfers greater than or equal to $50,000
Treasury Department of the Treasury
TTO Trade Transformation Office
USAO U.S. Attorney’s Office
Utah State of Utah
Virginia Commonwealth of Virginia
Washington State of Washington
West Virginia State of West Virginia
Treasury Office of Inspector General Semiannual Report—March 2024 80
Treasury Office of Inspector General Locations
1500 Pennsylvania Avenue, N.W., Room 4436
Washington, DC 20230
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/
File and source
- File
- semiannual-report-to-congress-mar-2025.pdf
- Size
- 1,331,892 bytes
- SHA-256
- ebc8e4bd6e244fe0cf0854ab768f3934cc2c30c272f5bb1a16c512d888bdcd46
- Original
- No public link identified.