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, four of the five remain as a management challenge for fiscal year (FY) 2018. OIG removed information technology system development and implementation because their current body of work does not support its continued reporting as a challenge to the Department. The FY 2018 management challenges are: (1) Improper Payments; (2) Information Technology Security; (3) Oversight and Monitoring; and (4) Data Quality and Reporting. 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 2017 report, see ED621357.]