The Office of Audits, Inspections, and Evaluations' activities include performance audits and evaluations, and financial audits. Performance audits are conducted in accordance with Generally Accepted Government Audit Standards, issued by the U.S. Government Accountability Office. Inspections and evaluations are conducted in accordance with Quality Standards for Inspection and Evaluation, issued by the Council of Inspectors General on Integrity and Efficiency. The Office also monitors the contracts for the (1) audit of the PBGC's financial statements and (2) the review of its information security practices; pursuant to the Chief Financial Officers Act of 1990 and information security reviews as required by the Federal Information Security Management Act of 2014. Other audits, inspections, or evaluations may be contracted out as determined necessary to meet our goals and objectives.
The Office publishes an annual oversight plan that identifies key areas for review based on a risk assessment, input from stakeholders, and our prior work.
The American Rescue Plan (ARP) Act of 2021, enacted on March 11, 2021, allows certain financially troubled multiemployer plans to apply for special financial assistance. The Pension Benefit Guaranty Corporation (PBGC) created a Special Financial Assistance (SFA) Program. This program addresses the immediate financial crisis threatening the retirement security of over three million American workers, retirees, and their families. The program will provide an estimated $74 to $91 billion in assistance to enable eligible multiemployer plans to pay retirement benefits without reduction for many years into the future.
PBGC OIG has developed a framework of three key oversight phases to guide our work. We will align our audits, evaluations, and investigative initiatives within these areas to ensure timely and effective assistance to qualified plans, and that special financial assistance efforts are not undermined by fraud, waste, and abuse.
Types of Reports issued by the Office of Audits, Inspections, and Evaluations
The primary purpose of a financial statement audit is to provide an independent opinion about whether the PBGC's financial statements are presented fairly in all material respects in conformity with an applicable financial reporting framework. Reporting on financial statement audits performed in accordance with generally accepting government auditing standards (GAGAS) also includes reports on internal control over financial reporting and on compliance with provisions of laws, regulations, contracts, that have a material effect on the financial statements.
At PBGC-OIG, we engage non-federal auditors from an independent public accounting firm to conduct the annual financial statement audit. We monitor their work in accordance with GAGAS and professional standards established by the Council of the Inspectors General on Integrity and Efficiency (CIGIE). For examples of these types of reports, please see Audit of Pension Benefit Guaranty Corporation's Limited Purpose Financial Statements for Fiscal Year 2024 and 2023
The purpose of a performance audit is to provide findings, conclusions, and recommendations based on objective analysis of sufficient, appropriate evidence against criteria, in accordance with GAGAS. Performance audits provide management and those charged with governance and oversight with insights and information to improve program performance and operations, reduce costs, facilitate decision-making, and contribute to public accountability. Performance audit objectives vary and may include assessments of program effectiveness, economy, and efficiency; internal control; compliance; and prospective analyses.
Under GAGAS, we plan the audit to reduce audit risk to an appropriate level in order to obtain reasonable assurance that the evidence is sufficient and appropriate to support the auditors’ findings and conclusions. This determination is a matter of professional judgment. In planning the audit, we assess significance and audit risk, and we apply these assessments in defining the audit objectives and the scope and methodology to address those objectives. Planning is a continuous process throughout the audit. Therefore, auditors may need to adjust the audit objectives, scope, and methodology as work is being completed. Auditors assess audit risk and significance within the context of the audit objectives by gaining an understanding of the matters such as the internal control environment, information systems controls, and previous investigations or audit results.
At PBGC-OIG, performance audits begin with an announcement letter to management communicating the commencement of the project and the preliminary objectives and scope. We then meet with management at an entrance conference to discuss the project and establish points of contact. We then gather relevant information relating to the matter under audit for general familiarization; identification of controls and areas of risk, materiality, and sensitivity; and planning and testing. This is called the survey phase of an audit, and objectives, scope and methodology may be adjusted as necessary. We then proceed to the execution phase, which concentrates on data collection and analysis. As the fieldwork progresses, OIG auditors discuss any significant preliminary findings with PBGC management officials. Once we have completed the objectives and developed findings, we generally prepare and issue to management a discussion draft report, followed by an exit conference to discuss the findings, recommendations, and text of the discussion draft. At this meeting, OIG will endeavor to reach agreement on management’s decision on the audit findings and recommendations. We then issue a formal draft report, and request management comments. We then review management’s comments and prepare a final report, which contains management’s comments in their entirety and OIG’s analysis of management’s comments. Final reports are required by law to be provided to the head of the agency and the congressional committees of jurisdiction and posted on the OIG’s public website within 3 days after issuance. As an example of these types of reports, please see PBGC’s Software Self-Attestation Efforts Need Improvement (AUD-2025-10)
The purpose of an evaluation is to provide credible and useful information for PBGC managers, policymakers and others. Evaluations are systematic and independent assessments of the design, implementation, and/or results of PBGC operations, programs, or policies. Like performance audits, an evaluation may result in recommendations for corrective action. Evaluations are conducted in accordance with the CIGIE Quality Standards for Inspection and Evaluation (QSIE) and are used when a project's objectives may not require certain planning assessments required by GAGAS performance audits.
At PBGC-OIG, evaluations generally follow the same process that is used for performance audits. Final evaluation reports are also required by law to be provided to the head of the agency and the congressional committees of jurisdiction and posted on the OIG’s public website within 3 days after issuance. As an example of these types of reports, please see Evaluation of Centenarian Participants Receiving Benefits (EVAL-2025-11)
The purpose of an inspection is to provide timely, credible, and useful information to PBGC managers regarding program performance or compliance with applicable law, regulation, contract and/or policy. Inspections are typically used to provide a periodic snapshot of a government-wide program (e.g., government purchase card, government travel card, telework, or inventory management) or contract performance. Inspections are conducted in accordance with the QSIE and strive to deliver significant information to appropriate management officials in a timely manner. Inspection reports may contain recommendations for corrective action. These recommendations are generally not prescriptive in nature; rather they are crafted in a manner that identifies what needs to be corrected or achieved.
At PBGC-OIG, inspections generally follow the same process that is used for performance audits. Final inspection reports are also required by law to be provided to the head of the agency and the congressional committees of jurisdiction and posted on the OIG’s public website within 3 days after issuance. As an example of these types of reports, please see PBGC’s FY 2018 Annual Performance Report (EVAL-2020-09)
Special Reports are used to provide information to management and those charged with governance and oversight in accordance with our duties and responsibilities. Under the Inspector General Act, we are responsible for providing policy direction, recommending policies, and providing leadership to promote economy, efficiency and effectiveness in PBGC programs and operations. We also are required to keep the Board of Directors and the Congress fully and currently informed concerning fraud and other serious problems, abuses, and deficiencies relating to the administration of PBGC programs and operations and the necessity for and progress of corrective action. To fulfill these responsibilities, we issue the following Special Reports:
Reviews – The purpose of a Review is to provide a timely assessment of facts regarding an allegation of waste, mismanagement, or program deficiencies. Reviews are typically conducted in response to a hotline complaint or to address issues raised in a congressional request. If warranted, a Review may contain recommendations for corrective action. As examples of these types of reports, please see Review of PBGC's Customer Service Goal-Sharing Award Program (SR-2018-13)
Risk Advisories – The purpose of a Risk Advisory is to provide timely information to management regarding our observation of a risk. A Risk Advisory will typically contain suggested corrective action to mitigate the risk. Unlike an audit and due to the limited nature of a Risk Advisory, the suggested corrective action is provided as a professional courtesy and does not require a management response. If management elects to respond, we include this response with the web posting of the Risk Advisory. As examples of these types of reports, please see Recent Court of Appeals Ruling May Cost Taxpayers Approximately $6 Billion More in Special Financial Assistance than Originally Projected (SR-2025-09)
White Papers – The purpose of a White Paper is to provide research, or share best practices or promising approaches White Papers typically involve emerging issues and are designed to provide policy direction and provide leadership to promote economy, efficiency and effectiveness in PBGC programs and operations. White Papers do not contain recommendations. As an example of this type of report, please see White Paper: Searching Plan Records for Deceased Participants (SR-2023-10)