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TREASURY DIRECTIVE 27-12

DATE:  September 16, 2011
 
SUBJECT:    Organization and Functions of the Office of Inspector General
 
 
1.    PURPOSE.  This directive describes the organization and functions of the Office of Inspector General (OIG).
 
2.    SCOPE.  This directive applies to all bureaus, offices, and organizations in the Department of the Treasury, except as noted herein. The Inspector General is appointed by the President and confirmed by the Senate, and reports to the Secretary through the Deputy Secretary.  The Inspector General carries out the duties and responsibilities set out in Treasury Order 114-01, “Office of Treasury Inspector General.”  The Inspector General is responsible for ensuring a comprehensive audit and investigative program for the Department, subject to subsection 8D(a) of the Inspector General Act of 1978, as amended, 5 U.S.C.A. Appendix 3 (IG Act), except for audits and investigations concerning the Secretary and the Department on all matters relating to the Internal Revenue Service (IRS), and concerning the IRS Oversight Board and the Chief Counsel for the IRS, all of which are the responsibility of the Treasury Inspector General for Tax Administration (TIGTA), as set forth in Section 8D of the IG Act and Treasury Order (TO) 115-01,and audits and investigations concerning the Troubled Assets Relief Program (TARP) established by the Emergency Economic Stabilization Act of 2008, Pub. L. 110-343, which are the responsibility of the Special Inspector General for the TARP (SIGTARP).
 
3.    RESPONSIBILITIES.
 
      a.    The Inspector General is responsible for the performance of the following functions:
 
            1)    Conduct audits and inquiries into the programs and operations of the Departmental Offices (DO); the Office of the Comptroller of the Currency (OCC); the Bureau of Engraving and Printing (BEP); the Financial Management Service (FMS); the Community Development Financial Institutions Fund (CDFI); the U.S. Mint (Mint); the Bureau of the Public Debt (Public Debt); the Financial Crimes Enforcement Network (FinCEN); the Alcohol and Tobacco Tax and Trade Bureau (TTB); the State Small Business Credit Initiative established by Title III and the Small Business Lending Fund Program established by Title IV of the Small Business Jobs Act of 2010, Pub. L. 111-240, and all other Treasury components and programs except those within the jurisdiction of the TIGTA or the SIGTARP.
 
            2)    Investigate allegations of crime and other serious misconduct by employees, contractors, grantees, related parties, and other persons in connection with the programs and operations of DO, OCC, BEP, FMS, CDFI, Mint, Public Debt, FinCEN, TTB, and all other Treasury components and programs except those within the jurisdiction of the TIGTA or the SIGTARP; and investigate or oversee other cases, events, programs and other matters, as appropriate, throughout the Department.
 
            3)    Serve on the Council of Inspectors General on Integrity and Efficiency (CIGIE).
 
            4)    Review and investigate referrals from the Office of Special Counsel.
 
            5)    Promote integrity awareness, among employees in conjunction with the Designated Agency Ethics Official, and fraud awareness among employees, contractors, grantees, and related parties in conjunction with Bureau and Departmental procurement and grant officials.
 
            6)    Recommend policies designed to promote economy, efficiency and integrity in the administration of Departmental and bureau programs and activities.
 
            7)    Advise and assist management in preventing and detecting fraud, waste, and abuse in Departmental programs and operations.
 
            8)    Serve on and act as Chair of the Council of Inspectors General on Financial Oversight (CIGFO) established by Section 989E of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Pub. L. 111-203.
 
            The OIG is independent of DO and all other offices and bureaus within the Department.  The OIG is led by the Inspector General.  The Inspector General supervises two deputies, the Deputy Inspector General, and the Special Deputy Inspector General for Small Business Lending Program Oversight, as well as the Assistant Inspector General for Investigations and the Counsel to the Inspector General.  The Deputy Inspector General supervises the Assistant Inspectors General for Audit and for Management.  (See Attachment 1)
 
      b.    The Deputy Inspector General assists the Inspector General in conducting, supervising and coordinating audits, investigations, inquiries, and the administrative and support services necessary to accomplish the OIG mission, and administers the OIG internal investigative program.  The Deputy Inspector General acts for the Inspector General when the Inspector General is absent and also works closely with the AIGs and the Counsel to:
 
            1)    establish priorities;
 
            2)    provide direction or guidance on projects of special significance; and
 
            3)    coordinate personnel assignments as necessary and appropriate.
 
      c.    The Special Deputy Inspector General for Small Business Lending Fund Oversight heads the Office of Small Business Lending Fund Program Oversight, established by Section 4107 of the Small Business Jobs Act of 2010, Pub. L. 111-240.  The Special Deputy IG is responsible for all audits and investigations constituting oversight of the Small Business Lending Fund Program and the State Small Business Credit Initiative.
 
      d.    The Counsel to the Inspector General, as authorized by Section 3(g) of the IG Act, provides all administrative legal services within the OIG, including responses to requests made under the Freedom of Information Act and Privacy Act, provides legal advice and training to OIG personnel, conducts and supervises administrative and judicial litigation relating to personnel issues, reviews administrative subpoenas prepared for issuance by the Inspector General, conducts ethics training and advice and administers financial disclosure reporting and review, reviews legislation and regulations that affect the Department of the Treasury.  The Counsel reports to the Inspector General, and is not a part of the Department’s Legal Division.
 
      e.    The Assistant Inspector General for Audit (AIGA), appointed in accordance with Section 3(d)(1) of the IG Act is responsible for the following functions:
 
            1)    Manages OIG audit activities.
 
            2)    Coordinates and participates with the Assistant Inspector General for Investigations on efforts requiring joint audit and investigative activities.
 
            3)    Supervises the Deputy Assistant Inspector General for Financial Management and Information Technology Audit, and the Deputy Assistant Inspector General for Performance Audit.
 
      f.    The Deputy Assistant Inspector General for Financial Management and Information Technology Audit has audit responsibilities for all Departmental and bureau program areas within the OIG’s jurisdiction, and is responsible for the following functions:
 
            1)    Manages, directs and coordinates the execution of all financial audits, and all performance audits related to information technology and the Department’s financial assistance programs, within the OIG’s audit jurisdiction.
 
            2)    Assists the AIGA with planning and developing audit policies, program goals, and objectives.
 
      g.    The Deputy Assistant Inspector General for Performance Audit has audit responsibilities for all departmental, office and bureau program areas within the OIG’s jurisdiction, and is responsible for the following functions:
 
            1)    Manages, directs, and coordinates the execution of all other performance audits within the OIG’s audit jurisdiction, and
 
            2)    Assists the AIGA in planning and developing audit policies, program goals and objectives.
 
      h.    The Assistant Inspector General for Investigations (AIGI), appointed in accordance with Section 3(d)(2) of the IG Act, carries out the following duties:
 
            1)    Acting in accordance with statutory law enforcement authority (IG Act) and applicable U.S. Department of Justice (DOJ) Guidelines.  In the course of executing this function, Office of Investigation (OI) criminal investigative (special agent) personnel carry firearms and intermediate weapons, make arrests, execute search warrants, serve subpoenas, and may conduct undercover operations.  OI investigative personnel use these authorities to support the investigation of allegations of criminal violations of Federal statutes as well as violations of other laws and regulations set forth in TO 114-01.  The resolution of such matters may involve criminal prosecution, civil litigation, and administrative actions (e.g. adverse personnel as well as suspension and/or debarment actions).
 
            2)    In accordance with the responsibilities set forth in the Memorandum of Understanding effective July 6, 2005, OI conducts internal investigations of employees of the TTB.  The OI is responsible for the following functions:
 
                  a)    In accordance with the IG Act, OI investigative personnel conduct oversight reviews of Treasury Bureau law enforcement programs and operations (Mint Police and BEP Office of Security, Police Operations Division).
 
                  b)    Promotes integrity awareness, among employees in conjunction with the Designated Agency Ethics Official, as well as fraud awareness among employees, contractors, grantees, and related parties in conjunction with Bureau and Departmental procurement and grant officials.
 
                  c)    Operates the OIG Hotline.
 
                  d)    Coordinates and participates with the AIGA on efforts requiring joint audit and investigative activities.
 
                  e)    Supervises the Special Agent-in-Charge for the Investigations Division,
 
                        (1)   The Special Agent-in-Charge for Investigations is responsible for managing, directing, and coordinating all OI investigative divisional activities.
 
      i.    The Assistant Inspector General for Management (AIGM) carries out the following duties:
 
            1)    Advise the Inspector General and Deputy Inspector General on all administrative management matters.
 
            2)    Serve as OIG CIGIE liaison, including responding to CIGIE and other requests for information and as liaison to and executive director of the CIGFO.
 
            3)    Lead the Deputy AIGM and employees that provide or coordinate policies and services in five management areas for the OIG, including:
 
                  a)    Administrative Services:  Emergency preparedness, obtaining and maintaining leased space, records retention management, property management, travel program, travel and small-purchase credit cards, and procurement.
 
                  b)    Budget and Reporting:  Formulation, presentation and execution of the OIG budget and performance reporting.
 
                  c)    Finance:  Execution of financial plan and OIG administrative management controls.
 
                  d)    Human Resources:  Recruitment, position classification, employee performance, awards and recognition.
 
                  e)    Information Technology:  Computers, telephones, networks, wireless devices, software, automated systems, and IT training.
 
4.    AUTHORITIES.     
 
      a.    5 U.S.C.A. Appendix 3, Inspector General Act of 1978, as amended.
 
      b.    Pub. L. 110-203, Dodd-Frank Wall Street Reform and Consumer Protection Act.
 
      c.    Pub. L. 111-240, Small Business Jobs Act.
 
5.    REFERENCES.
 
      a.    TO 114-01, “Office of Treasury Inspector General.”
 
      b.    Treasury Directive 40-01, “Responsibilities of and to the Inspector General.”
 
      c.    TO 115-01, “Office of the Treasury Inspector General for Tax Administration,” dated January 14, 1999.
 
6.    CANCELLATION.  Treasury Directive 27-12,”Organization and Functions of the Office of Inspector General,” dated May 26, 1992, is superseded.
 
7.    OFFICE OF PRIMARY INTEREST.  Office of Inspector General.
 
 
 
                                    /S/
                                    Eric M. Thorson
                                    Inspector General
 
 
Attachment:
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Last Updated: 10/21/2011 3:50 PM