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 five management challenges: improper payments, information technology security, oversight and monitoring, data quality and reporting, and information technology system development and implementation. Although the Department made some progress in addressing these areas, each remains as a management challenge for fiscal year (FY) 2016. The FY 2016 management challenges are: (1) Improper Payments; (2) Information Technology Security; (3) Oversight and Monitoring; (4) Data Quality and Reporting; and (5) Information Technology System Development and Implementation. These challenges reflect continuing vulnerabilities and emerging issues faced by the Department as identified through recent OIG audit, inspection, and investigative work. [For the FY 2015 report, see ED621355.]