The Office of Inspector General (OIG) works to promote efficiency, effectiveness, and integrity in the programs and operations of the U.S. Department of Education (Department). Through OIG's audits, inspections, investigations, and other reviews, they continue to identify areas of concern within the Department's programs and operations and recommend actions the Department should take to address these weaknesses. The Reports Consolidation Act of 2000 requires the OIG to identify and report annually on the most serious management challenges the Department faces. Last year, OIG presented four management challenges: improper payments, information technology security, oversight and monitoring, and data quality and reporting. Although OIG noted some progress by the Department in addressing these areas, each remains as a management challenge for fiscal year (FY) 2013. The FY 2013 management challenges are: (1) Improper Payments; (2) Information Technology Security; (3) Oversight and Monitoring; and (4) Data Quality and Reporting.