Treasury Office of Inspector General Semiannual Report—September 2025 (Report to Congress)
Summary
The Treasury Office of Inspector General's Semiannual Report for September 2025 reports $50 million in potential monetary benefits, 24 products from the Office of Audit, and 12 indictments and 8 convictions. The Defense Contract Audit Agency examined a Bureau of Engraving and Printing contract proposal and reported $49.1 million in questioned costs. Emergency Rental Assistance desk reviews found $918,745 in questioned costs, and Coronavirus Relief Fund reviews found $32,554. In an Indiana case, a nonprofit submitted 28 fraudulent applications over $200,000, and the director was ordered to pay $221,897 in restitution. An airline agreed to pay an $8.1 million civil settlement over Payroll Support Program certifications.
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“Treasury Office of Inspector General Semiannual Report—September 2025 (Report to Congress).”
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Placeholder for Front Cover of September 2025 Semiannual Report to Congress
e
Highlights
During this semiannual reporting period, the Department of the Treasury (Treasury)
Office of Inspector General (OIG) identified $50 million in potential monetary benefits.
The Office of Audit issued 24 products and work by the Office of Investigations resulted
in 12 indictments and 8 convictions. Some of our more significant results for the period
are described below:
• In a review overseen by our office, the Defense Contract Audit Agency (DCAA)
examined a Bureau of Engraving and Printing (BEP) contract proposal and reported
$49.1 million in questioned costs.
• Office of Audit performed desk reviews of 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 $918,745 in
total questioned costs based on our desk reviews and other information received
for the following State and Local governments:
o State of North Carolina;
o City of Moreno Valley, California (Moreno Valley);
o State of Florida.
• Office of Audit performed desk reviews of 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
Coronavirus Relief Fund Guidance, we also identified $32,554 in total questioned
costs.
• Office of Investigations provided OIG Systemic Observations for the Departmental
Offices of the Treasury. This document provided recommendations to strengthen
policy regarding the usage of Treasury issued mobile devices, usage of third-party
messaging applications and record retention, and security concerns regarding the
download and maintenance of third-party applications on Treasury issued mobile
devices.
• Office of Investigations completed an investigation into the defrauding of an Indiana
ERA Program whereby a local nonprofit submitted 28 fraudulent applications over
$200,000. The director of the nonprofit pled guilty and received a sentence of five
years, two years of probation and was required to pay $221,897 in restitution.
• Office of Investigations, with assistance from Office of Audit, completed an
investigation into a US Airline company abusing the Payroll Support Program (PSP)
under the CARES Act program. The airline inaccurately certified compliance with
the PSP requirements. The airline agreed to pay an $8.1 million civil settlement to
resolve the allegations.
Message from the Inspector General
During this reporting period, Treasury OIG continued its rigorous oversight of
pandemic recovery programs administered by Treasury. A total of 24 oversight
products were issued, five of which specifically addressed pandemic-related
activities.
In addition, Treasury OIG conducted an audit to evaluate the Treasury Office of
Intelligence and Analysis’s (OIA) compliance with Title 67 of the James M. Inhofe
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2023. The audit
determined that OIA did not develop, acquire, or adopt any artificial intelligence (AI)
capabilities during the period under review due to the Director of National
Intelligence not issuing any AI-related guidance pursuant to section 6702(a) of the
NDAA for FY 2023. Accordingly, there are no AI systems within OIA requiring
maintenance or oversight.
Treasury OIG is also actively engaging with stakeholders to explore the current
applications, opportunities, and risks of AI in the financial sector. As OIG operations
evolve, AI presents a promising avenue to enhance efficiency—allowing teams to
achieve more with fewer resources.
This technological shift naturally prompts reflection on the future of traditional roles
within Treasury OIG. Crucially, the successful implementation of AI in Treasury
functions still depends on human judgment. Skilled professionals are essential for
training AI systems and embedding the logic and domain-specific knowledge
required for responsible and effective decision-making. Successful implementation of
AI will require strategic oversight, innovation, and thoughtful governance.
Treasury OIG remains steadfast in its mission to investigate fraud, waste, and abuse
across Treasury programs, including those related to pandemic relief, employee
misconduct, and cyber-related fraud. Our efforts extend beyond internal oversight, as
we actively participate in multiple law enforcement working groups and task forces
dedicated to addressing fraud on Treasury programs and operations perpetrated by
outside parties.
Beyond our investigative work, Treasury OIG continues to provide leadership and
administrative support to the Council of Inspectors General on Financial Oversight.
Treasury Office of Inspector General Semiannual Report—September 2025 ii
Message from the Inspector General
Established under the Dodd-Frank Wall Street Reform and Consumer Protection Act,
the Council of Inspectors General on Financial Oversight plays a key role in
overseeing and monitoring the activities of the Financial Stability Oversight Council,
chaired by the Secretary of the Treasury.
The OIG plays a vital role in safeguarding integrity and enhancing the efficiency of
Treasury’s programs and operations. This impact is made possible by the exceptional
expertise, professionalism, and dedication of our employees. Their contributions are
not only commendable, but they are also central to our mission. I proudly recognize
their commitment and salute their outstanding accomplishments.
Loren J. Sciurba
Deputy Inspector General
Treasury Office of Inspector General Semiannual Report—September 2025 iii
Contents
Contents
Highlights ....................................................................................................... i
Message from the Inspector General .......................................................... ii
Treasury Office of Inspector General Overview.......................................... 5
Management and Performance Challenges ................................................ 7
Office of Audit – Significant Audits and Other Products ........................... 8
CARES Act Compliance Monitoring ...................................................................................... 8
Emergency Rental Assistance Oversight .............................................................................. 9
Cyber/Information Technology ............................................................................................ 11
Anti-Money Laundering/Terrorist Financing and Intelligence ........................................... 13
Manufacturing and Revenue................................................................................................ 14
Financial Management ......................................................................................................... 15
Office of Investigations – Significant Investigations ................................ 17
CARES Act Investigations .................................................................................................... 17
Other Significant Investigations .......................................................................................... 17
Treasury OIG Accomplishments and Activities ........................................ 19
Statistical Summary ................................................................................... 22
Other Reporting Requirements and Requests .......................................... 36
References to the Inspector General Act .................................................. 38
Abbreviations .............................................................................................. 39
Treasury Office of Inspector General Overview
Treasury OIG was established pursuant to the 1988 amendments to the Inspector
General Act of 1978. 1 Treasury OIG is headed by an Inspector General appointed by
the President with the advice and consent of the Senate.
Treasury OIG performs independent, objective reviews of Treasury programs and
operations, except for those of the Internal Revenue Service (IRS), and keeps the
Secretary of the Treasury and Congress fully informed of problems, deficiencies, and
the need for corrective action. The Treasury Inspector General for Tax Administration
and the Government Accountability Office perform oversight related to the IRS. The
Government Accountability Office performs oversight of loans, loan guarantees, and
other investments under the Coronavirus Economic Stabilization Act of 2020.
Treasury OIG also performs independent oversight of programs and operations
funded by the Gulf Coast Restoration Trust Fund established within Treasury by the
Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived
Economies of the Gulf Coast States Act of 2012 (RESTORE Act). 2 In addition, Treasury
OIG performs oversight of programs and operations administered by the Gulf Coast
Ecosystem Restoration Council (Council), established as an independent federal
entity, and the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring,
and Technology Program (Science Program) administered by the National Oceanic
and Atmospheric Administration (NOAA). With regard to the Council and the Science
Program, Treasury OIG keeps the appointed Chairperson of the Council, the NOAA
Science Program Administrator, and Congress fully informed of problems,
deficiencies, and the need for corrective actions.
Treasury OIG has four components: 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,
and evaluations to detect and prevent fraud, waste, and abuse in programs and
operations within Treasury OIG’s jurisdictional boundaries. Reporting to the Assistant
Inspector General for Audit are Deputy Assistant Inspectors General responsible for
1
5 U.S.C. §§401-424
2
Public Law 112-141
Treasury Office of Inspector General Semiannual Report—September 2025 5
Treasury Office of Inspector General Overview
managing a diverse range of audit activities. These activities include financial sector
audits, fiscal management and transparency audits, cybersecurity, and financial
assistance audits. Areas of responsibility span banking supervision, revenue
collection activities, financial statements, anti-money laundering and sanctions
programs, intelligence operations, information systems, and domestic assistance
programs.
The Office of Investigations, under the leadership of the Assistant Inspector General
for Investigations, performs investigations and conducts initiatives to detect and
prevent fraud, waste, and abuse in programs and operations within Treasury OIG’s
jurisdictional boundaries; and to investigate threats against Treasury personnel and
assets in designated circumstances as authorized by the Inspector General Act. The
Office of Investigations also manages the Treasury OIG Hotline to facilitate reporting
of allegations involving these programs and operations.
The Office of Counsel, under the leadership of the Counsel to the Inspector General,
provides legal advice to the Inspector General and all Treasury OIG components. The
office represents Treasury OIG in administrative legal proceedings and provides a
variety of legal services, including (1) processing Freedom of Information Act and
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
administrative infrastructure, including facilities, human resources, information
technology, procurement, records management, and security.
For FY 2025, Treasury OIG received $48.3 million in direct appropriations. Of this
amount, up to $2.8 million is designated for audits and investigations under the
RESTORE Act. As of September 30, 2025, Treasury OIG had 199 full-time staff, before
the departure of Deferred Resignation Program employees.
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—September 2025 6
Management and Performance Challenges
The Reports Consolidation Act of 2000 requires that the Treasury Inspector General
annually provides his perspective on the most serious management and performance
challenges facing Treasury and the Council. The following is a synopsis of our annual
assessments, which are available in their entirety on the Treasury OIG website.
Treasury
In a December 4, 2025, memorandum to Secretary of the Treasury,
Scott Bessent, Deputy Inspector General Loren Sciurba reported the following
five challenges facing the Department, of which two were new:
• Resource Optimization (New)
• Cyber Threats (Repeat)
• Artificial Intelligence Adoption (New)
• Anti-Money Laundering/Terrorist Financing and Bank Secrecy Act
Enforcement (Repeat)
• Crypto and Digital Assets Growth (Repeat)
Gulf Coast Ecosystem Restoration Council
In a November 20, 2025, letter to the Honorable David Fotouhi, Deputy
Administrator of the U.S. Environmental Protection Agency, Deputy Inspector
General Loren Sciurba, serving as Chairperson of the Council, 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—September 2025 7
Office of Audit – Significant Audits and Other Products
CARES Act Compliance Monitoring
The CARES Act assigned our office responsibility for monitoring and oversight of the
receipt, disbursement, and use of 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, Grants greater than or equal to $50,000, Loans 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, in any amount. This data was displayed on the Pandemic Response
Accountability Committee’s website (https://www.pandemicoversight.gov/).
During this semiannual reporting period, as part of our compliance monitoring of
CRF payments, we performed the following activities and outreach efforts for CRF
recipients.
Desk Review of the State of Wisconsin’s Use of Coronavirus Relief
Fund Proceeds
We found that the Financial Progress Report submissions were timely.
Transactions selected for detailed review were supported by documentation
and were allowable expenditures in accordance with the CARES Act and
Treasury’s Coronavirus Relief Fund Guidance. We noted that the tested
Aggregate Payments to Individuals were necessary expenditures due to the
Coronavirus Disease 2019 (COVID-19) public health emergency, were not
accounted for in the budget most recently approved as of March 27, 2020, and
were incurred during the covered period of March 1, 2020, to
December 31, 2021.
We determined that the State of Wisconsin’s risk of unallowable use of funds is
low and we will not be conducting an audit. The State of Wisconsin concurred
with our assessment. (OIG-CA-25-041)
Treasury Office of Inspector General Semiannual Report—September 2025 8
Office of Audits – Significant Audits and Other Products
Desk Review of the State of Oregon’s Use of Coronavirus Relief
Fund Proceeds
We determined that the State of Oregon’s (Oregon) risk of unallowable use of
funds was low; therefore, we will not be conducting an audit of the State.
However, we identified a matter of concern regarding a sub-recipient, the City
of Lakeside, Oregon (Lakeside). We reviewed a complaint about CRF
expenditures Oregon provided to Lakeside. We determined that $18,889 of the
$51,443 in grant funds Lakeside received were spent in accordance with the
CARES Act and Treasury’s Coronavirus Relief Fund Guidance. Accordingly, we
identified $32,554 in questioned costs. We recommended that the Acting Chief
Program Officer of the Treasury Office of Capital Access (OCA) coordinate with
the Treasury OIG to ensure that Oregon returns to Treasury the $32,554 of CRF
proceeds that were improperly used by Lakeside. Treasury OIG will seek
recoupment under its authority granted by the CARES Act. (OIG-CA-25-049)
$32,554 Questioned Cost
Emergency Rental Assistance Oversight
Section 501 of the Consolidated Appropriations Act, 2021 assigned our office the
responsibility to conduct monitoring and oversight of the receipt, disbursement, and
use of ERA1 and ERA2 funds and the authority to recoup funds used in violation of
the Consolidated Appropriations Act, 2021 and Treasury’s guidance. The ERA1
statute, codified at 15 USC § 9058a, and the ERA2 statute, codified at 15 USC § 9058c,
direct Treasury to make allocations and payments to eligible grantees such as State
and Local governments, who in-turn, make funding available in the form of rental
assistance to eligible households. As part of its oversight authority for ERA1, if
Treasury 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 for ERA1 and
ERA2:
Treasury Office of Inspector General Semiannual Report—September 2025 9
Office of Audits – Significant Audits and Other Products
Emergency Rental Assistance (ERA1) Program Notice of
Recoupment – State of North Carolina
The State of North Carolina is a recipient of funds under the ERA1 statute. In
April 2023, we made an inquiry to the State about a complaint reported to the
OIG Hotline. We learned that the State maintained a database of substantiated
ERA fraud, waste, and abuse cases. We requested and reviewed
documentation for five of those cases. Based on the information provided, we
determined that the State’s ERA1 program paid out ERA1 funds totaling
$803,160 that did not comply with the ERA1 statute because the funds were
disbursed to ineligible households. On August 12, 2025, Treasury’s Bureau of
the Fiscal Service (Fiscal Service) issued an invoice for $803,160 to the State of
North Carolina establishing a debt to the Federal Government. (OIG-CA-25-054,
Redacted) $803,160 Questioned Cost
Emergency Rental Assistance Program (ERA1) – Notice of
Recoupment, City of Moreno Valley, California
Moreno Valley is a recipient of funds under the ERA1 statute. In December
2022 and August 2023, OIG received reports from a subrecipient of Moreno
Valley, about four cases of potential improper payments made with ERA1
award funds. We determined that the payments for two cases were eligible
and the payments for the other two cases, totaling $16,975, failed to comply
with the Use of Funds requirements in the ERA1 statute.
Moreno Valley informed us that as instructed by Treasury and OIG in a Joint
Notice issued on October 4, 2024, 4 they repaid the $16,975, as part of a $28,889
payment, to Treasury on December 10, 2024, from city funds. Moreno Valley’s
response and action addressed our recoupment finding. Accordingly, we make
no recommendation in this memorandum. (OIG-CA-25-055, Redacted) $16,975
Questioned Cost
4
The Joint Notice was issued as a reminder to all ERA financial assistance award recipients of
responsibilities and requirements for reporting fraud and reimbursing fraud losses and unallowable
costs from non-ERA funds. The Joint Notice is available on OIG’s website at
https://oig.treasury.gov/system/files/2024-10/ERA-Joint-Treasury-OIG-Notice.pdf and Treasury’s
website at https://home.treasury.gov/system/files/136/ERA-Joint-Treasury-OIG-Notice.docx.
Treasury Office of Inspector General Semiannual Report—September 2025 10
Office of Audits – Significant Audits and Other Products
Emergency Rental Assistance Program (ERA1) – Notice of
Recoupment, State of Florida
The State of Florida is a recipient of funds under the ERA1 statute. Beginning
February 2023 through January 2024, we made inquiries to the state regarding
12 complaints of suspected fraud related to its ERA1 award reported to the OIG
hotline. Based on the information provided, we determined that the State 's
ERA1 program paid out ERA1 funds totaling $98,610 in violation of the ERA 1
statute because the funds were disbursed to ineligible households. On
August 20, 2025, Fiscal Service issued an invoice for $98,610 to State of Florida
establishing a debt to the Federal Government. (OIG-CA-25-056, Redacted)
$98,610 Questioned Cost
Cyber/Information Technology
Federal Information Security Modernization Act of 2014
The Federal Information Security Modernization Act (FISMA) requires Inspectors
General to perform an annual, independent evaluation of their agency’s information
security program and practices. During this semiannual reporting period, Treasury
OIG issued the following reports on Treasury’s and the Council’s compliance with
FISMA.
Audit of the Department of the Treasury Federal Information
Security Modernization Act, Fiscal Year 2025 Performance Audit for
the Unclassified Systems
A certified independent public accounting firm (IPA), working under a contract
with and supervised by our office, performed this year’s annual FISMA audit of
Treasury’s unclassified systems, except for those of the Internal Revenue
Service, which were evaluated by the Treasury Inspector General for Tax
Administration, for the period April 1, 2024, through March 31, 2025. The IPA
conducted its audit in accordance with generally accepted government
auditing standards. In connection with our contract with the IPA, we reviewed
its report and related documentation and inquired of its representatives. Our
review, as differentiated from an audit performed in accordance with generally
accepted auditing standards, was not intended to enable us to conclude on the
effectiveness of Treasury’s information security program or its compliance
with FISMA. The IPA was responsible for its report and the conclusions
expressed therein.
Treasury Office of Inspector General Semiannual Report—September 2025 11
Office of Audits – Significant Audits and Other Products
For FY 2025, the IPA reported that consistent with applicable FISMA
requirements, Office of Management and Budget (OMB) policy and guidance,
and the National Institute of Standards and Technology standards and
guidelines, Treasury’s information security program and practices for its
unclassified systems were established and maintained in alignment with the
six Cybersecurity Functions and ten FISMA Metric Domains. However, the
program was deemed ineffective based on Department of Homeland Security
(DHS) criteria, as evidenced by five deficiencies identified by the IPA across
three of the six Cybersecurity Functions and four of the ten FISMA Metric
Domains.
Accordingly, the IPA made 12 recommendations to the responsible officials to
address the identified deficiencies. Treasury management agreed with the
recommendations and prepared corrective action plans that met the intent of
IPA’s recommendations. Due to the sensitive nature of these findings, this
report is designated Sensitive But Unclassified. (OIG-25-029, Sensitive But
Unclassified)
Audit of the Department of the Treasury Federal Information
Security Modernization Act, Fiscal Year 2025 Performance Audit for
the Collateral National Security Systems
An IPA firm, working under a contract with and supervised by our office,
performed this year’s annual FISMA audit of Treasury’s Collateral National
Security Systems for the period April 1, 2024, through March 31, 2025. In
connection with our contract with the IPA, we reviewed its report and related
documentation and inquired about its representatives. Our review, as
differentiated from an audit performed in accordance with generally accepted
auditing standards, was not intended to enable us to conclude on the
effectiveness of Treasury’s information security program or its compliance
with FISMA. The IPA is responsible for its report and the conclusions
expressed therein.
The IPA reported that consistent with applicable FISMA requirements, OMB
and the Committee on National Security Systems policy and guidance, and the
National Institute of Standards and Technology standards and guidelines,
Treasury established and maintained its information security program and
practices for its Collateral National Security Systems for the six Cybersecurity
Functions and ten FISMA Metric Domains. The IPA assessed Treasury’s
information security programs and practices for both of its Collateral National
Security Systems as Consistently Implemented (Level 3), which was ineffective
Treasury Office of Inspector General Semiannual Report—September 2025 12
Office of Audits – Significant Audits and Other Products
according to DHS criteria. While the IPA did not identify any new findings,
most metrics were not assessed as Managed and Measurable (Level 4) due to
a lack of identified qualitative and quantitative performance measures on the
effectiveness of the security programs and practices. Treasury management
agreed with the report. Due to the sensitive nature of these systems, this report
is designated Sensitive But Unclassified. (OIG-25-030, Sensitive But
Unclassified)
The Gulf Coast Ecosystem Restoration Council Federal Information
Security Modernization Act of 2014 Evaluation Report for Fiscal
Year 2025
An IPA working under a contract supervised by our office, performed the
annual FISMA evaluation of’ Council’s security program and practices for the
period April 1, 2024, through March 31, 2025. The IPA determined that the
Council’s information security program and practices, established and
maintained for the six Cybersecurity Function Areas and ten FISMA Metric
Domains, were effective during the evaluation period. The IPA did not make
any recommendations to the Council. Council’s management concurred with
the report. (OIG-CA-25-053)
Anti-Money Laundering/Terrorist Financing and Intelligence
We conduct audits of Treasury anti-money laundering and terrorist financing
programs. We issued the following report during this semiannual period.
Office of Intelligence and Analysis Does Not Have Artificial
Intelligence Capabilities and Faces Barriers to its Accelerated
Adoption
The NDAA for FY 2023 mandated that we evaluate: (1) the efforts of such
element to develop, acquire, adopt, and maintain AI capabilities for the
purpose of improving intelligence collection and analysis in a timely manner
and the extent to which such efforts are consistent with the policies and
principles described in section 6702(a)(2); (2) the degree to which the element
has implemented each of the provisions of Title LXVII of the NDAA for FY 2023;
and (3) any administrative or technical barriers to the accelerated adoption of
AI by such element. This semiannual reporting period, we issued our report of
OIA’s compliance with Title 67 of the FY 2023 NDAA.
Treasury Office of Inspector General Semiannual Report—September 2025 13
Office of Audits – Significant Audits and Other Products
We found that OIA did not develop, acquire, or adopt any AI capabilities;
therefore, OIA has no AI capabilities to maintain. Additionally, we determined
that of the seven provisions that OIA had a responsibility to implement, OIA
implemented three, but two provisions were not implemented timely, resulting
in two audit findings. OIA did not implement the four remaining provisions.
Three of these provisions were not implemented because the Director of
National Intelligence had not established necessary guidelines, and the fourth
provision was not implemented due to an oversight. Furthermore, we
identified five barriers to the accelerated adoption of AI by OIA and discussed
an “other matter” related to one of those barriers.
We recommended the Assistant Secretary for OIA ensure that OIA personnel
implement a standard operating procedure that defines roles and
responsibilities for legislative requirements. OIA management concurred with
our recommendation and provided their planned corrective action. OIA’s
planned corrective action meets the intent of our recommendation.
(OIG-25-025)
Manufacturing and Revenue
We conduct audits of the Treasury coin, currency, and alcohol, and tobacco tax and
trade programs. We issued the following report during this semiannual period.
Price Proposal in Response to a Bureau of Engraving and Printing
Solicitation
In an examination overseen by our office, the DCAA reviewed a price proposal
submitted in response to a BEP contract solicitation. In its report, DCAA
identified $49.1 million in questioned costs. The examination results were
submitted to BEP, and we made one recommendation. Due to the proprietary
nature of contractor bid and proposal information, this report is designated
Sensitive But Unclassified. (OIG-CA-25-058, Sensitive But Unclassified)
$49,146,917 Questioned Costs
Treasury Office of Inspector General Semiannual Report—September 2025 14
Office of Audits – Significant Audits and Other Products
Financial Management
Payment Integrity Information Act of 2019
We reported on Treasury’s and the Council’s overall compliance with improper
payment reporting as required by the Payment Integrity Information Act of 2019
(PIIA).
Treasury Payment Integrity Information Act FY 2024
An IPA firm, under a contract monitored by our office, audited Treasury’s
compliance with PIIA for FY 2024. The IPA determined that Treasury was not in
compliance with the applicable requirements of PIIA for FY 2024. Treasury did
not comply with 1 of 10 PIIA reporting requirements. Specifically, Treasury did
not comply with the requirement to report an improper payment rate of less
than 10 percent for four IRS programs identified as susceptible to significant
improper payments: (i) Earned Income Tax Credit; (ii) American Opportunity
Tax Credit; (iii) Additional Child Tax Credit; and (iv) Net Premium Tax Credit.
Treasury complied with the remaining nine PIIA requirements.
The IPA also found:
• OCA management’s control activities were inefficient and ineffective in
identifying overpayments for the ERA and Homeowners Assistance Fund
programs.
• OCA management identified overpayments $9,129 related Homeowners
Assistance Fund program that were inadvertently omitted in OCA’s
reporting of overpayments identified outside of payment recapture
audits for FY 2024.
• Four bureau management responses to certain questions in their
qualitative risk assessment were inaccurate in determining the payment
types’ susceptibility to improper payments. However, these inaccurate
responses did not affect the overall risk assessment rating for these fund
groups.
Treasury management concurred with the IPA’s recommendations and
provided their planned corrective actions. Treasury’s planned corrective action
meets the intent of the recommendations. (OIG-25-027)
Treasury Office of Inspector General Semiannual Report—September 2025 15
Office of Audits – Significant Audits and Other Products
Gulf Coast Payment Integrity Information Act FY 2024
We determined that the Council complied with the applicable requirements of
PIIA for FY 2024. We made no recommendations in this report. (OIG-25-026)
Attestation Engagement
An IPA, under a contract monitored by our office, completed the report described
below in support of the audit of Treasury’s FY 2025 consolidated financial statements
and the financial statement audits of certain other Federal agencies.
Report on the Processing of Transactions by Treasury Enterprise
Applications
The IPA examined management of Treasury Enterprise Applications’
description of controls for processing customer agencies’ human resource
transactions in its HRConnect system; and the suitability of the design and
operating effectiveness of these controls for the period beginning July 1, 2024,
and ending June 30, 2025. The IPA found, in all material respects, the controls
were fairly presented in the description of controls for this system, suitably
designed, and controls tested operated effectively throughout the period.
(OIG-25-028)
Federal Financial Management Improvement Act
The following instances of noncompliance with the Federal Financial Management
Improvement Act of 1996 were reported in connection with the audit of Treasury’s FY
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 FY 2025
consolidated financial statements.
Treasury Office of Inspector General Semiannual Report—September 2025 16
Office of Investigations – Significant Investigations
CARES Act Investigations
Oregon Residents Convicted and Sentenced for Oregon Coronavirus
Relief Fund Program Fraud
On September 25, 2025, the OIG completed its investigation into two individuals who
fraudulently obtained business grants from the Oregon Cares Fund, which received
its funding from the CRF. In addition, both individuals fraudulently obtained
Pandemic Unemployment Assistance. Both defendants pled guilty and were
sentenced collectively to 12 months of home detention, 8 years of probation and
restitution, criminal fines, and special assessments totaling $221,897. The OIG and
Department of Labor, OIG conducted the investigation.
Other Significant Investigations
Allegations of Violations of Treasury Records Retention Policy via
Treasury Mobile Devices Substantiated
On September 25, 2025, the OIG completed its investigation regarding concerns over
records retention policies with third party messaging applications used by Treasury
employees. Treasury policy states employees are not allowed to use encrypted
applications like “WhatsApp” or “Signal” to conduct Treasury-related business. A
review of data on Treasury-issued mobile devices shows 93 employees installed
Signal and 190 employees installed WhatsApp. OIG substantiated that Treasury
employees frequently use third party messaging applications, in violation of existing
Treasury policy.
Indiana Non-Profit Director Convicted and Sentenced in Indiana
Emergency Rental Assistance Program Fraud Scheme
On June 9, 2025, the OIG completed its report of investigation into an allegation that
an Indiana non-profit Director submitted 26 applications to the City of Fort Wayne, IN,
ERA Program. These applications contained fraudulent tax documents and numerous
stolen identities to create potential ERA recipients. On May 20th, 2024, the Director
was indicted on 18 counts of Wire Fraud, 18 USC 1343 and subsequently sentenced
Treasury Office of Inspector General Semiannual Report—September 2025 17
Office of Investigations – Significant Investigations
by U.S. District Court, Northern District of Indiana, to 50 months confinement to the
Bureau of Prisons, two years of supervised release, and restitution of $166,292.
Allegations of Excessive Reasonable Accommodation Requests
Submitted to Fiscal Service Unsubstantiated Prompts Policy Change
On June 9, 2025, the OIG completed its report of investigation concerning a surge in
Reasonable Accommodation (RA) requests from Fiscal Service employees. The
alleged surge in RA requests occurred after the mandate for Treasury Department
employees to return to the office for work. OIG unsubstantiated the allegation that a
doctor was issuing numerous, identical medical notes to support the accommodation
request. OIG reviewed the list of RA participants provided by Fiscal Service and
determined there was not a pattern of abuse or overuse of doctors and doctor’s
notes. Fiscal Service has updated the RA approval process to include alternative
solutions for accommodating the request without working from home. In addition,
any request longer than two weeks will require Deputy Director approval. A new
policy is being drafted to formally reflect the changes.
Treasury Office of Inspector General Semiannual Report—September 2025 18
Treasury OIG Accomplishments and Activities
Office of Inspector General of the Intelligence Community Collaboration
Award for Legislative Subcommittee, Intelligence Community Inspector
General Forum
The Treasury OIG was honored with the OIG of the Intelligence Community
Collaboration Award for its contributions to the Legislative Subcommittee of the
Intelligence Community Inspectors General Forum. This recognition highlights
Treasury OIG’s commitment to fostering interagency cooperation and advancing the
mission of the Legislative Subcommittee of the Intelligence Community Inspectors
General Forum, which is to promote collaboration, coordination, and mutual support
among the Inspectors General of the U.S. Intelligence Community.
Treasury and OIG Joint Notice to ERA Grantees
Pursuant to the Joint Notice issued on October 4, 2024, during this semiannual
reporting period grantees repaid $254,524 to Treasury as follows:
ERA1 Repayments to Treasury
City of Fort Wayne IN $168,457
City of Los Angeles $31,250
Berks County, Pennsylvania $21,766
Lake County IN $20,826
State of Idaho $12,225
Total Voluntary ERA Repayments $254,524
Since the Joint Notice was issued, grantees have repaid a total of $391,778 to
Treasury and reimbursed a total of $20,620 to their ERA2 programs.
Treasury Office of Inspector General Semiannual Report—September 2025 19
Treasury OIG Accomplishments and Activities
Delta Air Lines Agrees to Pay $8.1 million to Settle Alleged False Claims
Act Violations Related to Payroll Support Program
In July, the Offices of Investigation and Audit secured an $8.1 million settlement in a
company PSP investigation. The investigation revealed the airline inaccurately
certified compliance with PSP requirements related to the executive compensation in
reports submitted to the Treasury. Throughout the pandemic, both offices worked
diligently alongside the Main Treasury and the Department of Justice (DOJ) to
combat fraud, waste, and abuse in relief programs. As our pandemic-related efforts
end, the dedication and impact of this work remain undiminished—and will not go
unnoticed.
P 57T 3#y
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Former Massachusetts Woman Arrested for Fraudulent Receipt of ERA
Under a COVID-19 Relief Program
The Office of Audit and the Office of Investigations proudly commend one of our
Senior Special Agents and the investigative team for their outstanding work leading
to the arrest and charging of an individual. The individual was suspected of
fraudulently obtaining over $100,000—and attempting to secure more than
$260,000—in ERA funds from the California ERA program in 2021. They posed as a
landlord in Los Angeles while residing in Massachusetts, exploiting pandemic relief
efforts meant for vulnerable households.
This successful enforcement action reflects our continued commitment to combating
pandemic-related fraud and restoring stolen funds to Treasury. Together, we remain
steadfast in the fight to protect public resources and uphold accountability.
P 66T #y
Read Full Article
Treasury Office of Inspector General Semiannual Report—September 2025 20
Treasury OIG Accomplishments and Activities
Man fears deportation after sentencing in Maryland COVID-19 fraud
scheme involving 600 victims
The Office of Audit and the Office of Investigations is pleased to announce another
successful prosecution in the fight against pandemic-related fraud. The final
defendant in a sweeping investigation, uncovering nearly $3 million in fraudulent
unemployment relief affecting over 600 victims—has been sentenced. An individual
received 18 months of imprisonment, was ordered to pay $250,000 in restitution, and
now faces potential deportation. This outcome follows a thorough prosecution by the
U.S. Attorney’s Office for the District of Maryland.
We extend our congratulations to our Special Agent for his leadership and to all
those whose tireless and often unseen efforts helped bring this case to resolution.
Together, we continue to protect public funds and uphold accountability.
P275TB2#y1
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Treasury OIG Leadership Roles
Treasury OIG professionals serve various important public and private professional
organizations supporting the Federal audit community. Examples of participation in
these organizations are as follows:
Pauletta Battle, 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 Coronavirus Aid, Relief, and Economic Security Act
Oversight, is the National Single Audit Coordinator for Treasury.
Treasury Office of Inspector General Semiannual Report—September 2025 21
Statistical Summary
Summary of Treasury OIG Activities
Number or
OIG Activity Dollar Value
Office of Counsel Activities
Regulation and legislation reviews 8
Instances where information was refused 0
Office of Audit Activities
Reports issued and other products 24
Disputed audit recommendations 0
Significant revised management decisions 0
Management decision in which the Inspector General disagrees 0
Questioned costs $50,098,216
Funds put to better use $0
Voluntary repayments* $254,524
Total monetary benefits $50,352,740
Office of Investigations Activities**
Criminal and judicial actions (including joint investigations)
Investigative reports issued 20
Cases referred for prosecution and/or litigation 14
Individuals referred for criminal prosecution to the Department of Justice 12
Individuals referred for criminal prosecution to state and local authorities 2
Cases accepted for prosecution and/or litigation 10
Arrests 5
Indictments/informations 12
Convictions (by trial and plea) 8
Criminal Fines / Restitution / Court Fees $8,488,189
Total OIG Monetary Results $58,840,928
*Voluntary repayment in response to CRF audit work and our October 4, 2024, ERA Joint Notice.
**During the reporting period, subjects were sentenced to 5 years of prison time, 8 years probation, 8 months of home
detention, and 12 days of community service.
Treasury Office of Inspector General Semiannual Report—September 2025 22
Statistical Summary
Metrics Used for Office of Investigations Activities
Treasury OIG investigative statistics listed above were obtained through reports
drawn from Treasury OIG’s Office of Investigations case management system from
April 1, 2025, through September 30, 2025. Some statistics represent actions
occurring in the case prior to case closure but could not be reported until
investigation was officially complete.
Reports with Unimplemented Recommendations
Issued prior to April 1, 2025
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 RESTORE Act programs and activities of the Council and NOAA’s
Science Program; and of DHS, U.S. Customs and Border Protection’s (CBP) programs
and activities related to protecting revenue.
Treasury OIG is reporting 221 open and unimplemented recommendations for
67 reports issued prior to April 1, 2025, with over $4 billion in potential cost saving.
Treasury OIG considers all unimplemented recommendations for reports issued over
six months to be significant.
Treasury Programs and Operations
Date Report Number Report Title Number of Open
Recommendations
4/9/2018 OIG-18-044 TERRORIST FINANCING/MONEY LAUNDERING: Audit 1
of the Office of Intelligence and Analysis’ Authorities
and Actions Related to U.S. Persons’ Financial
Information
2/5/2020 OIG-20-027 RESOURCE MANAGEMENT: Audit of the Department 1
of the Treasury Departmental Offices Executive Pay
Adjustments, Bonuses, and Awards
Treasury Office of Inspector General Semiannual Report—September 2025 23
Statistical Summary
Date Report Number Report Title Number of Open
Recommendations
8/18/2020 OIG-20-042 RESOURCE MANAGEMENT: Audit of the Department 1
of the Treasury Departmental Offices Executive Pay
Adjustments, Bonuses, and Awards
10/27/2021 OIG-22-004 INFORMATION TECHNOLOGY: Department of the 5
Treasury Federal Information Security Modernization
Act Fiscal Year 2021 Performance Audit for Collateral
National Security Systems (Sensitive But Unclassified)
10/28/2021 OIG-22-005 CYBERSECURITY/INFORMATION TECHNOLOGY: 2
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2021
Performance Audit (Sensitive But Unclassified)
11/08/2021 OIG-22-008 DATA ACT: Treasury Submitted Higher Quality Non- 1
IRS Data in its Fiscal Year 2020 Third Quarter DATA Act
Submission, However Improvements are Still Needed
9/2/2022 OIG-22-037 CYBERSECURITY/INFORMATION TECHNOLOGY: 1
Federal Information Security Modernization Act Fiscal
Year 2022 Performance Audit for the Unclassified
Systems (Sensitive But Unclassified)
6/6/2023 OIG-23-028 CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF 1
PROGRAMS: Audit of Air Carrier Worker Support
Certifications - Ground Services International, Inc.
1/16/2024 OIG-24-022 CYBERSECURITY/INFORMATION TECHNOLOGY: 2
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2023
Performance Audit for the Unclassified Systems
(Sensitive But Unclassified)
1/16/2023 OIG-24-023 CYBERSECURITY/INFORMATION TECHNOLOGY: 1
Department of the Treasury Federal Information
Security Modernization Act Fiscal Year 2023
Performance Audit for the Collateral National Security
Systems (Sensitive But Unclassified)
3/6/2024 OIG-24-025 ANTI-MONEY LAUNDERING/TERRORIST FINANCING: 2
TFI’s Ukraine-/Russia-related Sanctions Program
Complied With Requirements But Designation Decision
Records Were Not Consistently Complete and Closed
Timely
3/21/2024 OIG-CA-24-015 Memorandum - Inquiry on Revolving Door Between the 2
Largest Accounting Firms and the Department of the
Treasury
5/29/2024 OIG-24-027 The Mint Needs to Enhance Controls Over Gold 2
Acquisitions
9/9/2024 OIG-24-032 GOVERNMENT-WIDE FINANCIAL SERVICES: Audit of 1
Direct Express Program Disputes Related to Certain
Cardholder Accounts
Treasury Office of Inspector General Semiannual Report—September 2025 24
Statistical Summary
Date Report Number Report Title Number of Open
Recommendations
9/10/2024 OIG-24-034 INFORMATION TECHNOLOGY: Department of the 6
Treasury Federal Information Security Modernization
Act Fiscal Year 2024 Performance Audit for Unclassified
Systems (Sensitive But Unclassified)
9/10/2024 OIG-CA-24-027 CYBERSECURITY/INFORMATION TECHNOLOGY: 2
Assessment of the Department of the Treasury's
Incident Response Reporting Process for Select
Incidents (Sensitive But Unclassified)
11/15/2024 OIG-25-009 FINANCIAL MANAGEMENT: Audit of the Department 2
of the Treasury's Consolidated Financial Statements for
Fiscal Years 2024 and 2023
12/6/2024 OIG-25-013 FINANCIAL MANAGEMENT: Management Letter for 13
the Deficiencies in Internal Control over Cash
Management Systems at the Bureau of the Fiscal
Service Identified during the Audit of the Department
of the Treasury's Consolidated Financial Statements for
Fiscal Years 2024 and 2023
12/10/2024 OIG-25-016 FINANCIAL MANAGEMENT: Management Letter for 2
the Audit of the United States Mint's Financial
Statements for Fiscal Years 2024 and 2023
12/12/2024 OIG-25-018 FINANCIAL MANAGEMENT: Management Letter for 1
the Audit of the Bureau of Engraving and Printing's
Financial Statements for Fiscal Years 2024 and 2023
3/24/2025 OIG-CA-25-038 Complaint Referral Memorandum - United States 3
Mint's Congressional Award Medal Loss
Other Federal, State, and Local Entities
Date Report Number Report Title Number of Open Questioned
Recommendations Costs
3/31/2022 OIG-22-033 REVENUE COLLECTION: The U.S. 12 $0
Customs and Border Protection’s
Oversight of the Merchandise
Transported In-Bond Program Needs
Improvement to Better Ensure the
Protection of Revenue
6/26/2023 OIG-CA-23-018* Desk Review of Chippewa Cree 1 $75,091
Tribe’s Use of Coronavirus Relief
Fund Proceeds
6/29/2023 OIG-CA-23-024* Desk Review of Lancaster County, 1 $38,793,071
Pennsylvania’s Use of Coronavirus
Relief Fund Proceeds
7/7/2023 OIG-CA-23-025* Desk Review of State of California’s 1 $6,952
Use of Coronavirus Relief Fund
Proceeds
Treasury Office of Inspector General Semiannual Report—September 2025 25
Statistical Summary
Date Report Number Report Title Number of Open Questioned
Recommendations Costs
7/7/2023 OIG-CA-23-026* Desk Review of Turtle Mountain 2 $32,333,620
Band of Chippewa Indians’ Use of
Coronavirus Relief Fund Proceeds
(Redacted)
7/7/2023 OIG-CA-23-027* Desk Review of Los Angeles County, 1 $249,052,032
California’s Use of Coronavirus Relief
Fund Proceeds
7/20/2023 OIG-CA-23-028* Desk Review of City of Dallas, Texas’ 1 $2,211,594
Use of Coronavirus Relief Fund
Proceeds
7/20/2023 OIG-CA-23-029* Desk Review of State of Florida’s Use 1 $893,154,358
of Coronavirus Relief Fund Proceeds
7/20/2023 OIG-CA-23-030* Desk Review of San Bernardino 3 $4,151,612
County, California’s Use of
Coronavirus Relief Fund Proceeds
7/21/2023 OIG-CA-23-032* Desk Review of Phoenix, Arizona’s 1 $147,379
Use of Coronavirus Relief Fund
Proceeds
7/21/2023 OIG-CA-23-033* Desk Review of Pleasant Point Indian 2 $339,672
Reservation, Maine’s Use of
Coronavirus Relief Fund Proceeds
7/21/2023 OIG-CA-23-034* Desk Review of State of Texas’ Use 1 $17,288,575
of Coronavirus Relief Fund Proceeds
7/26/2023 OIG-CA-23-035* Desk Review of the State of 2 $1,162,364
Tennessee’s Use of Coronavirus
Relief Fund Proceeds
7/27/2023 OIG-CA-23-037* Desk Review of State of Ohio’s Use 3 $86,801
of Coronavirus Relief Fund Proceeds
7/28/2023 OIG-CA-23-038* Desk Review of Native Village of 2 $2,348,064
Point Hope’s Use of Coronavirus
Relief Fund Proceeds
8/8/2023 OIG-CA-23-039* Desk Review of the Commonwealth 2 $11,146,813
of the Northern Mariana Islands’ Use
of Coronavirus Relief Fund Proceeds
8/8/2023 OIG-CA-23-040* Desk Review of the Commonwealth 2 $33,681,692
of Puerto Rico’s Use of Coronavirus
Relief Fund Proceeds
8/8/2023 OIG-CA-23-041* Desk Review of Navajo Nation Tribal 8 $80,844,219
Government's Use of Coronavirus
Relief Fund Proceeds (Redacted)
8/9/2023 OIG-CA-23-042* Desk Review of the Commonwealth 4 $870,559,763
of Virginia’s Use of Coronavirus
Relief Fund Proceeds
10/17/2023 OIG-CA-24-003* City of Springfield, Massachusetts – 1 $300,000
Use of Coronavirus Relief Fund
Proceeds
Treasury Office of Inspector General Semiannual Report—September 2025 26
Statistical Summary
Date Report Number Report Title Number of Open Questioned
Recommendations Costs
3/26/2024 OIG-24-026 REVENUE COLLECTION: CBP Needs 4 $0
to Enhance its Monitoring and
Tracking of the Outcomes of
Investigations into the
Underpayment of Duties
8/1/2024 OIG-CA-24-019* Desk Review of Bucks County, 1 $111,423
Pennsylvania's Use of Coronavirus
Relief Fund Proceeds
9/20/2024 OIG-CA-24-028* Desk Review of Bergen County, New 1 $57,000
Jersey's Use of Coronavirus Relief
Fund Proceeds
9/26/2024 OIG-CA-24-029* Desk Review of Emergency Rental 1 $98,242
Assistance Payments Made by the
City of Houston, Texas and Harris
County, Texas
10/23/2024 OIG-CA-25-004* Desk Review of Baltimore County, 1 $620,189
MD
10/23/2024 OIG-CA-25-005* Desk Review of the State of North 1 $476,115
Carolina's Use of Coronavirus Relief
Fund Proceed
11/13/2024 OIG-CA-25-007* Desk Review of the State of West 2 $21,575,074
Virginia's Use of Coronavirus Relief
Fund Proceeds
12/2/2024 OIG-CA-25-010* Desk Review of the Government of 4 $3,962,502
Guam's Use of Coronavirus Relief
Fund Proceeds
12/4/2024 OIG-CA-25-012* Desk Review of the Commonwealth 1 $61,282,912
of Pennsylvania's Use of Coronavirus
Relief Fund Proceeds
12/12/2024 OIG-CA-25-013* Desk Review of City of Fresno, 3 $272,083
California’s Use of Coronavirus Relief
Fund Proceeds
12/12/2024 OIG-CA-25-014* Desk Review of Dallas County, Texas’ 1 $16,423,761
Use of Coronavirus Relief Fund
Proceeds
12/12/2024 OIG-CA-25-015* Desk Review of the State of 4 $1,324,066
Mississippi's Use of Coronavirus
Relief Fund Proceeds
12/12/2024 OIG-CA-25-016* Desk Review of State of Arizona's 6 $135,821,457
Use of Coronavirus Relief Fund
Proceeds
12/17/2024 OIG-CA-25-017* Desk Review of the District of 17 $27,481,906
Columbia's Use of Coronavirus Relief
Fund Proceeds
12/17/2024 OIG-CA-25-018* Desk Review of the State of Utah's 9 $47,161,537
Use of Coronavirus Relief Fund
Proceeds
Treasury Office of Inspector General Semiannual Report—September 2025 27
Statistical Summary
Date Report Number Report Title Number of Open Questioned
Recommendations Costs
12/19/2024 OIG-CA-25-019* Desk Review of the Commonwealth 10 $164,101,025
of Massachusetts' Use of
Coronavirus Relief Fund Proceeds
12/17/2024 OIG-CA-25-020* Desk Review of North Dakota’s Use 2 $712,792
of Coronavirus Relief Fund Proceeds
12/18/2024 OIG-CA-25-021* Desk Review of the State of New 1 $16,424,839
Hampshire's Use of Coronavirus
Relief Fund Proceeds
12/18/2024 OIG-CA-25-022* Desk Review of Oklahoma County, 4 $417,882
Oklahoma's Use of Coronavirus
Relief Fund Proceeds
12/18/2024 OIG-CA-25-023* Desk Review of the State of 1 $35,575,107
Oklahoma's Use of Coronavirus
Relief Fund Proceeds
12/20/2024 OIG-CA-25-024* Desk Review of the Kiowa Tribe of 12 $8,530,154
Oklahoma's Use of Coronavirus
Relief Fund Proceeds
12/19/2024 OIG-CA-25-025* Desk Review of the State of 4 $14,368,934
Washington's Use of Coronavirus
Relief Fund Proceeds
2/7/2025 OIG-CA-25-026* Desk Review of the State of New 23 $1,110,559,989
Jersey's Use of Coronavirus Relief
Fund Proceeds
12/19/2024 OIG-CA-25-027* Desk Review of the Native Village of 1 $1,176,698
Selawik's Use of Coronavirus Relief
Fund Proceeds
12/19/2024 OIG-CA-25-028* Desk Review of the State of 1 $15,830,130
Nebraska's Use of Coronavirus Relief
Fund Proceeds
12/20/2024 OIG-CA-25-029* Desk Review of the State of 3 $167,633,232
Connecticut's Use of Coronavirus
Relief Fund Proceeds
*Denotes reports that were issued over 6 months for which no management decision has been made as of September 30, 2025.
Treasury Office of Inspector General Semiannual Report—September 2025 28
Statistical Summary
Closed Investigations of Senior Government Employees Not
Publicly Disclosed
Treasury OIG closed two investigations involving senior Government employees
during the period that were not publicly disclosed. Both investigations substantiated
instances of misconduct of a senior Government employee. One investigation was
referred to the DOJ for prosecution and DOJ declined to prosecute. The second
investigation was referred locally to Washington County Prosecutor’s Office,
Marietta, OH for prosecution where the employee pled guilty.
Allegation/Disposition
On September 25, 2025, Treasury OIG completed its report of investigation into
allegations that a Treasury employee falsified their time and attendance records
claiming shift differential on hours worked during a day shift. An overpayment was
identified over a one-year period based on facility badge records. The investigation
was presented and declined for criminal prosecution by the United States Attorney’s
Office for the District of Columbia due to the availability of administrative remedies.
Substantiated
On August 1, 2024, Treasury OIG completed its report of investigation for a case
alleging a Treasury employee was arrested for a domestic altercation. The
investigation was conducted by Washington County Sheriff's Office, in Marietta,
Ohio. The employee pled guilty to a misdemeanor.
Substantiated
Treasury Office of Inspector General Semiannual Report—September 2025 29
Statistical Summary
Trafficking Victims Prevention and Protection Reauthorization
Act of 2022
Number of Suspected Violation Reported: 0
Number of Investigations: 0
Status and Outcome of Investigations: N/A
Recommended Actions to Improve: None
Summary of Instances of Whistleblower Retaliation
There were no new cases of whistleblower retaliation opened during this reporting
period. No records or other information, and no instances where information or
assistance request was refused during this reporting period.
Summary of Attempts to Interfere With Treasury OIG
Independence, Including Instances Where Information or
Assistance Request was Refused
There were no attempts made to resist, delay, or restrict Treasury OIG access to
records or other information and no instances where an information or assistance
request was refused during this reporting period.
Treasury Office of Inspector General Semiannual Report—September 2025 30
Statistical Summary
Listing of Audit Products Issued
Office of Audit
Report Title Report
Number
April 2025
Termination Memorandum – Audit of the Bureau of the Fiscal Service’s Internal Controls Over its Card OIG-CA-25-039
Acquiring Service Program and Management of Interchange Fees
OIA Does Not Have Artificial Intelligence Capabilities and Faces Barriers to its Accelerated Adoption OIG-25-025
Report Title Report
Number
May 2025
Desk Review of the State of Wisconsin’s Use of Coronavirus Relief Fund Proceeds OIG-CA-25-041
Termination Memorandum – Audit of the Department of the Treasury ‘s Pre-Award Process for the OIG-CA-25-042
State Small Business Credit Initiative (SSBCI) Main Capital Allocation and Distribution for States and
U.S. Territories
Termination Memorandum – Audit of the Office of the Comptroller of the Currency’s Supervision of OIG-CA-25-043
Federal Branches and Agencies of Foreign Banks
Termination Memorandum - Audit of the Department of the Treasury‘s Pre-award Process for the State OIG-CA-25-044
Small Business Credit Initiative (SSBCI) Program Funds for Socially and Economically Disadvantaged
Business Owners for States, U.S. Territories, and Tribal Governments
Termination Memorandum – Audit of the Department of the Treasury's Pre-award Process for the State OIG-CA-25-045
Small Business Credit Initiative (SSBCI) Program Funds for Technical Assistance to States, U.S.
Territories, and Tribal Governments
Termination Memorandum - Audit of the Bureau of the Fiscal Service’s Information Technology OIG-CA-25-048
Infrastructure
Audit of the Gulf Coast Ecosystem Restoration Council’s Compliance With PIIA 2019 for Fiscal Year OIG-25-026
2024
Audit of Treasury’s Compliance with the PIIA Requirements for Fiscal Year 2024 OIG-25-027
Desk Review of the State of Oregon’s Use of Coronavirus Relief Fund Proceeds OIG-CA-25-049
Report Title Report
Number
June 2025
Overseas Contingency Operations - Summary of Work Performed by the Department of the Treasury OIG-CA-25-050
Related to Terrorist Financing and Anti-Money Laundering for the Second Quarter Fiscal Year 2025
Termination Memorandum - Audit of the Bureau of the Fiscal Service’s Treasury Offset Program – Call OIG-CA-25-051
Center Support
Treasury Office of Inspector General Semiannual Report—September 2025 31
Statistical Summary
Report Title Report
Number
July 2025
Joint Purchase and Integrated Card Violation Report Q1-Q2 – Internal Memorandum OIG-CA-25-052
Report Title Report
Number
August 2025
Gulf Coast Ecosystem Restoration Council (Council) Federal Information Security Modernization Act of OIG-CA-25-053
2014 (FISMA) Evaluation Report for Fiscal Year (FY) 2025
Emergency Rental Assistance (ERA1) Notice of Recoupment - State of North Carolina (Redacted) OIG-CA-25-054
Emergency Rental Assistance Program (ERA1) – Notice of Recoupment, City of Moreno Valley, OIG-CA-25-055
California (Redacted)
Emergency Rental Assistance (ERA1) Program Notice of Recoupment – State of Florida (Redacted) OIG-CA-25-056
Report Title Report
Number
September 2025
Overseas Contingency Operations - Summary of Work Performed by the Department of the Treasury OIG-CA-25-057
Related to Terrorist Financing and Anti-Money Laundering for the Third Quarter Fiscal Year 2025
DCAA Examination Report on Crane & Co., Inc.’s Price Proposal for Distinctive Currency Paper in OIG-CA-25-058
Response to Solicitation No. RFP 2031ZA25R00002
Report on the Enterprise Applications’ Description of its HRConnect System and the Suitability of the OIG-25-028
Design and Operating Effectiveness of Its Controls for the Period July 1, 2024 to June 30, 2025
Federal Information Security Modernization Act Fiscal Year 2025 Performance Audit for the Unclassified OIG-25-029
Systems
Federal Information Security Modernization Act Fiscal Year 2025 Performance Audit for the Collateral OIG-25-030
National Security Systems
Council of Inspectors General on Financial Oversight
Report Title Report
Number
July 2025
Annual Report of the Council of Inspector General on Financial Oversight (July 2025) No Report
Number
Treasury Office of Inspector General Semiannual Report—September 2025 32
Statistical Summary
Audit Reports Issued With Questioned Costs
Total Total Total
No. of Questioned Unsupported
Category Reports Costs Costs
For which no management decision had been made by
the beginning of the reporting period 49 $4,090,218,529 $4,090,218,529
Which were issued during the reporting period 5 $50,098,216 $50,098,216
Subtotals 54 $4,140,316,745 $4,140,316,745
For which a management decision was made during the
reporting period 5 $535,808 $535,808
Dollar value of disallowed costs 5 $535,808 $535,808
Dollar value of costs not disallowed 0 $0 $0
For which no management decision was made by the
end of the reporting period 49 $4,139,780,937 $4,139,780,937
For which no management decision was made within 6
months of issuance 44 $4,089,682,721 $4,089,682,721
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—September 2025 33
Statistical Summary
Audit Reports Issued With Recommendations that Funds Be
Put to Better Use
There were no reports issued with recommendations that funds be put to better use.
Reports for Which No Management Comment was Returned
Within 60 Days
As of September 30, 2025
There were no such reports issued for comment over 60 days as of the end of the
reporting period.
Significant Revised Management Decisions
There were no significant management decisions revised during the reporting period.
Significant Disagreed Management Decisions
There were no significant disagreed management decisions during the reporting
period.
Treasury Office of Inspector General Semiannual Report—September 2025 34
Statistical Summary
Peer Reviews
Office of Audit
Audit organizations that perform audits and attestation engagements of Federal
Government programs and operations are required by generally accepted
government auditing standards to undergo an external peer review every three
years. The 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 Department of
Energy’s OIG. In its report dated November 27, 2024, the U.S. Department of Energy
OIG rendered a Pass rating for our system of quality control in effect for the year
ended March 31, 2024. External audit peer review reports of our office are available
on Treasury OIG’s website.
On May 25, 2025, Treasury OIG rendered a Pass rating to the U. S. Environmental
Protection Agency OIG for its system of quality control in effect for the year ended
September 30, 2023.
Office of Investigations
Council of the Inspectors General on Integrity and Efficiency mandates that the
investigative law enforcement operations of all OIGs undergo peer reviews every
three years to ensure compliance with (1) Council of the Inspectors General on
Integrity and Efficiency investigations quality standards and (2) the relevant
guidelines established by the Office of the Attorney General of the United States.
In its report dated November 6, 2024, the U.S. Department of Education OIG found
our office to be in compliance with all relevant guidelines for the review period. No
peer reviews occurred during this reporting period.
Treasury Office of Inspector General Semiannual Report—September 2025 35
Other Reporting Requirements and Requests
This section addresses certain reporting requirements of our office that are separate
from the reporting requirements in the Inspector General Act of 1978 (as amended).
Reviews of Bank Failures with Nonmaterial Losses
We conduct reviews of failed banks supervised by the Office of the Comptroller
of the Currency with losses to the Federal Deposit Insurance Corporation’s
Deposit Insurance Fund (DIF) that do not meet the definition of a material loss
in the Federal Deposit Insurance Act. The reviews are performed to fulfill the
requirements found in 12 U.S.C. §1831o(k). The term “material loss” triggers a
material loss review if a loss to the DIF exceeds $50 million (with provisions to
increase that trigger to a loss that exceeds $75 million under certain
circumstances). For losses that are not material, the Federal Deposit Insurance
Act requires that each 6-month- period, the OIG of the Federal banking agency
must (1) identify the estimated losses that have been incurred by the DIF
during that 6-month period and (2) determine the grounds identified by the
failed institution’s regulator for appointing the Federal Deposit Insurance
Corporation as receiver, and whether any unusual circumstances exist that
might warrant an in--depth review of the loss. For each 6-month period, we are
also required to prepare a report to the failed institutions’ regulator and to
Congress that identifies (1) any loss that warrants an in-depth review, together
with the reasons why such a review is warranted and when the review will be
completed; and (2) any losses where we determine no in-depth review is
warranted, together with an explanation of how we came to that
determination.
During this reporting period, there were no failed banks supervised by the
Office of the Comptroller of the Currency with material losses to DIF. There
was, one bank that failed during the period with a non-material loss to the DIF.
Santa Anna National Bank, Santa Anna, Texas was closed on June 27, 2025,
with an estimated loss to the DIF of $23.5 million. This work is ongoing, and
results will be included in the next Semiannual Report.
Treasury Office of Inspector General Semiannual Report—September 2025 36
Other Reporting Requirements and Requests
Overseas Contingency Operations Quarterly Summary
Memorandums to the Department of Defense Office of Inspector
General
During this reporting period, we issued two summary memorandums to the
Department of Defense OIG regarding information we obtained on Treasury’s
activities with respect to disrupting the Islamic State of Iraq and Syria’s
finances. The memorandums included specific examples of activities to disrupt
Islamic State of Iraq and Syria’s financing, information on Treasury programs
that combat terrorist financing, and work we performed or plan to perform to
review these programs. (OIG-CA-25-050, OIG-CA-25-057)
Joint Purchase Card Violations Report
The Government Charge Card Abuse Prevention Act of 2012, Public Law 112-
194, requires the head of each executive agency with more than $10 million in
purchase card spending annually, and each Inspector General of such an
executive agency, on a semiannual basis, to submit to the Director of OMB a
joint report on confirmed violations involving misuse of a purchase card by
employees of such executive agency and the related disciplinary actions. OMB
prescribed the format for the semiannual report, which is transmitted by
Treasury to OMB. We reviewed the report, Semi-Annual Report on Purchase
Card Violations, for the period of October 1, 2024, through March 31, 2025.
Consistent with supporting documents provided by Treasury’s bureaus and
offices, there were no confirmed purchase charge card violations during this
reporting period. (OIG- CA-25-052)
Treasury Office of Inspector General Semiannual Report—September 2025 37
References to the Inspector General Act
Section Requirement Page
Section 5(a)(1) Significant problems, abuses and deficiencies 8-18
Section 5(a)(2) Significant recommendations for corrective action 23-28
Section 5(a)(3) Reports with corrective action not completed 23-28
Section 5(a)(4) Matters referred to prosecutive authorities 22
Section 5(a)(5) Information or assistance refused 30
Section 5(a)(6) List of audit, inspection, and evaluation reports issued 31-32
Section 5(a)(7) Summaries of significant reports 8-18
Section 5(a)(8) Audit, inspection, and evaluation reports—questioned costs 22
Section 5(a)(9) Audit, inspection and evaluation reports—funds to be put to better use 22
Section Prior audit, inspection, and evaluation reports unresolved 23-28
5(a)(10)
Section Significant revised management decisions 34
5(a)(11)
Section Significant management decisions with which OIG disagreed 34
5(a)(12)
Section Peer reviews conducted 35
5(a)(14–16)
Section Statistics on investigative reports, referrals, prosecutions, indictments 22
5(a)(17–18)
Section Substantiated Investigations involving senior government employees 29
5(a)(19)
Section Description of whistleblower retaliation 30
5(a)(20)
Section Any establishment attempts to interfere with independence 30
5(a)(21)
Section Closed audits, evaluations, inspections, and investigations not disclosed to 29
5(a)(22) public
Treasury Office of Inspector General Semiannual Report—September 2025 38
Abbreviations
Abbreviations
Abbreviation Definition
AI Artificial Intelligence
BEP Bureau of Engraving and Printing
CARES Act Coronavirus Aid, Relief, and Economic Security Act
CBP U.S. Customs and Border Protection
Council Gulf Coast Ecosystem Restoration Council
COVID-19 Coronavirus Disease 2019
CRF Coronavirus Relief Fund
DCAA Defense Contract Audit Agency
DHS Department of Homeland Security
DIF Deposit Insurance Fund
DOJ Department of Justice
ERA Emergency Rental Assistance
Fiscal Service Bureau of the Fiscal Service
FISMA Federal Information Security Modernization Act
FY Fiscal Year
IPA Independent Public Accounting firm
IRS Internal Revenue Service
Lakeside City of Lakeside, Oregon
NDAA National Defense Authorization Act
Moreno Valley City of Moreno Valley, California
NOAA National Oceanic and Atmospheric Administration
OCA Office of Capital Access
OIA Office of Intelligence and Analysis
OIG Office of Inspector General
OMB Office of Management and Budget
Oregon State of Oregon
PIIA Payment Integrity Information Act of 2019
PSP Payroll Support Program
RA Reasonable Accommodation
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
SSBCI State Small Business Credit Initiative
Treasury Department of the Treasury
Treasury Office of Inspector General Semiannual Report—September 2025 39
Treasury Office of Inspector General Locations
1500 Pennsylvania Avenue, N.W., Room 4436
Washington, DC 20220
875 15th Street, N.W., Suite 200
Washington, DC 20005
Report Waste, Fraud, and Abuse
Submit a complaint regarding Treasury OIG Treasury Programs and Operations and Gulf Coast Restoration using our
online form: https://oig.treasury.gov/report-fraud-waste-and-abuse
Treasury Whistleblower Ombudsman
For information about whistleblowing and reprisal and about your rights and responsibilities as a Treasury employee or
contractor, please contact the OIG Whistleblower Ombudsman Program at 202-927-0650 or Email:
OIGCounsel@oig.treas.gov
Treasury OIG Website
Access Treasury OIG reports and other information online: https://oig.treasury.gov/
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