**Department of the Treasury — Special Inspector General for Pandemic Recovery (SIGPR)**
Congressional Budget Justification and Annual Performance Plan and Report — FY 2025

## Section I – Budget Request

### A – Mission Statement

To promote the economy, efficiency, effectiveness, and integrity of CARES Act funds and programs. SIGPR was established by section 4018 of the CARES Act with duties, responsibilities, and authority under the Inspector General Act of 1978. SIGPR employs proactive efforts to detect and investigate fraud, waste, and abuse involving CARES Act funds and programs within SIGPR's jurisdiction and support agreements with the PRAC Task Force.

### B – Summary of the Request

The $5.3 million FY 2025 request is a 56 percent reduction from the FY 2023 enacted level. The FY 2025 request aligns with SIGPR's 'Winddown' plan. In anticipation of OMB policy guidance, SIGPR plans to utilize remaining minimal carryover balance and requesting an absolute minimum amount of funds to keep investigators and auditors in place as long as possible into FY 2025 to accomplish the SIGPR mission while maximizing available technical staff to focus during the first six months of FY 2025 to complete and finalize the following objectives:
- Winddown SIGPR's operations in a responsible and orderly manner to hand off remaining open cases (investigative and administrative) and audits to future stewards.
- Assist all career employees in finding new permanent jobs matching their experience, proven professional ability and career goals.
- Manage and archive records upon closure of the agency.

The $5.3 million funds requested for FY 2025 are critically important to ensure maintaining maximum staff in place until the last minute focused on continuing existing case/audit finalization while being available to knowledgeably support pending DOJ pandemic fraud prosecutions to obtain closure/remittance of $582 million in identified fraud.

### 1.1 – Appropriations Detail Table (Dollars in Thousands)

| Appropriated Resources | FY 2023 Operating Plan FTE | FY 2023 Amount | FY 2024 Annualized CR FTE | FY 2024 Amount | FY 2025 Request FTE | FY 2025 Amount | % Change FTE | % Change Amount |
|---|---|---|---|---|---|---|---|---|
| Audits and Investigations | 53 | $12,000 | 38 | $12,000 | 11 | $5,327 | -71.1% | -55.6% |
| Subtotal New Appropriated Resources | 53 | $12,000 | 38 | $12,000 | 11 | $5,327 | -71.1% | -55.6% |
| Reimbursables | 0 | $15 | 0 | $100 | 0 | $0 | 0 | -100.0% |
| Unobligated Balances from Prior Years | 0 | $5,697 | 0 | $2,842 | 0 | $2,899 | 0 | -68.4% |
| Subtotal Other Resources | 0 | $5,712 | 0 | $2,942 | 0 | $2,899 | 0 | -69.4% |
| Total Budgetary Resources | 53 | $17,712 | 38 | $14,942 | 11 | $8,226 | -71.1% | -58.3% |

(FY 2023 Other Resources and FTE reflect actuals.)

### 1.2 – Budget Adjustments Table

| | FTE | Amount |
|---|---|---|
| FY 2024 Annualized CR | 38 | $12,000 |
| Adjustment to Reach Winddown Level | -27 | -$6,995 |
| MCLs subtotal | 0 | $322 |
| Pay Annualization (2024 5.2% average pay raise) | 0 | $142 |
| Pay Raise (2025 2.0% average pay raise) | 0 | $121 |
| Non-Pay (2025 2.2% non-pay inflation) | 0 | $59 |
| Subtotal Changes to Base | (27) | ($6,673) |
| FY 2025 Current Services | 11 | $5,327 |
| FY 2025 President's Budget Request | 11 | $5,327 |

### C – Budget Increases and Decreases Description

- Other Adjustments: -$6,995,000 / -27 FTE — Reduction to Winddown Level. Proceeding with orderly program winddown through March 2025 shutdown.
- Maintaining Current Levels (MCLs): +$322,000 / +0 FTE
  - Pay Annualization (5.2% in 2024): +$142,000
  - Pay Raise (2.0% in FY 2025): +$121,000
  - Non-Pay (2.2% in FY 2025): +$59,000

### 1.3 – Object Classification (Schedule O) Obligations (Dollars in Thousands)

| Object Classification | FY 2023 Actual | FY 2024 Estimated | FY 2025 Estimated |
|---|---|---|---|
| 11.1 - Full-time permanent | $8,823 | $7,028 | $2,499 |
| 11.9 - Personnel Compensation (Total) | $8,823 | $7,028 | $2,499 |
| 12.0 - Personnel benefits | $2,347 | $1,577 | $469 |
| Total Personnel and Compensation Benefits | $11,170 | $8,605 | $2,968 |
| 21.0 - Travel and transportation of persons | $115 | $222 | $63 |
| 23.0 – Rental Payments to GSA | $905 | $960 | $240 |
| 25.0 - Other goods and services from Federal sources | $2,547 | $2,070 | $2,000 |
| 26.0 - Supplies and materials | $110 | $77 | $23 |
| 31.0 - Equipment | $7 | $8 | $4 |
| Total Non-Personnel | $3,684 | $3,337 | $2,330 |
| Total Obligations | $14,854 | $11,942 | $5,298 |
| Full-time Equivalents (FTE) | 53 | 38 | 11 |

(Reimbursables: FY 2023 = $15,000, FY 2024 = $100,000, FY 2025 = $0. Carryover balances: FY 2023 = $5,697, FY 2024 = $2,842, FY 2025 = $2,899.)

### D – Appropriations Language and Explanation of Changes

DEPARTMENT OF THE TREASURY — SPECIAL INSPECTOR GENERAL FOR PANDEMIC RECOVERY (SIGPR) — Salaries and Expenses. Sec. 125: In addition to amounts otherwise available, there is appropriated to the Special Inspector General for Pandemic Recovery, $5,327,000 to remain available until expended, for necessary expenses in carrying out section 4018 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136). (The SIGPR appropriations language is included in the Treasury administrative provisions.)

### E – Legislative Proposals

SIGPR has no legislative proposals.

## Section II – Annual Performance Plan and Report

### A – Strategic Alignment

The $5.3 million FY 2025 request is a 56 percent reduction from the FY 2023 enacted level. The FY 2025 request aligns with SIGPR's 'Winddown' plan. SIGPR plans to utilize remaining minimal carryover balance and requesting an absolute minimum amount of funds to keep investigators and auditors in place as long as possible into FY 2025 to accomplish the SIGPR mission supporting DOJ prosecution teams pursuing closure on $582 million in identified pandemic fraud.

SIGPR leads the way by providing oversight of Treasury activities under the CARES Act by conducting independent audits and investigations necessary to prevent and detect waste, fraud, and abuse in programs and operations. SIGPR's CARES Act program jurisdiction includes two significant programs, the Direct Loan Program (loans to air carriers and national security businesses consisting of 35 loans, 35 borrowers for $2.7 billion), and the Main Street Lending Program (loans to small and medium-sized for-profit businesses and nonprofit organizations consisting of 319 lenders, 1,830 loans for $17.5 billion). SIGPR conducts audits of these Treasury programs, investigates fraud by recipients of CARES Act funds, and makes recommendations designed to improve the administration of pandemic recovery programs. SIGPR also conducts criminal investigations into allegations of waste, fraud, and abuse while helping to ensure that SIGPR protects and secures taxpayer data.

SIGPR continues to keep Congress, the Department of the Treasury, and other stakeholders aware of an impending crisis in the programs created in March 2020 via the CARES Act. For both the Main Street Lending Program (MSLP) and Treasury's Direct Loan Program, SIGPR notes an alarming rate of defaults by borrowers who are failing to pay even the interest payments on the loans.

SIGPR has developed 90 percent of its investigative cases proactively rather than waiting for tips or defaults and is investigating cases nationwide with potential fraud totaling more than $582 million. SIGPR has opened a total of 65 cases, of which 47 cases remain pending, with at least 130 potential defendants. 94 percent of SIGPR's investigations involve a combination of MSLP, Payroll Protection Program, and Economic Injury Disaster Loan Program fraud (double and triple dippers). SIGPR's investigations have thus far resulted in 21 federal indictments, 21 arrests, four guilty pleas, and four sentencings which have generated more than $11.9 million in court ordered restitution, $9.8 million in seizure/forfeiture orders, and a $350,000 civil settlement. $20.8 million in MSLP loans have been repaid following notification of an investigation. Recently, multiple arrests were made in connection with a complex fraud scheme representing over $52 million in alleged fraud loss.

The $5.3 million funds requested for FY 2025 are critically important to ensure maintaining maximum staff in place until the last minute focused on continuing existing case/audit finalization while being available to knowledgeably support pending DOJ pandemic fraud prosecutions to obtain closure/remittance of $582 million in identified fraud.

## Section III – Additional Information

### A – Summary of Capital Investments

SIGPR has no capital investments. Capital investments that support SIGPR are included in the Departmental Offices plan. A summary of capital investment resources, including major information technology and nontechnology investments, can be found at: https://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx