The Office of Inspector General (OIG) works to assist the Department of Education in ensuring the integrity of its operations and improving its programs. During the 6 months this report covers, OIG issued 60 audit and inspection reports and memoranda, and closed 104 investigations. More specifically, OIG investigated purchase-card abuse and high-risk contracts; conducted extensive work in information technology management and security; continued to investigate federal student-aid programs; commented on final rulemaking pertaining to the Higher Education Act; and performed audits on programs, systems, and financial operations. As a result of its investigations, OIG made the following recommendations: correct long-standing financial management problems; strengthen information technology (IT) security; improve internal controls; improve contract monitoring; balance compliance monitoring and technical assistance; work to remove federal student-aid programs from the Government Accounting Office high-risk list; pursue appropriate electronic government initiatives; improve strategic management of human capital; improve and test continuity of operations plans; improve management of IT assets; and obtain reliable performance data and improve performance measures. The results of some of the audits and investigations, as well as recommendations and lists of unresolved reports, are presented in 10 tables. (WFA)