In accordance with the Reports Consolidation Act of 2000, the Office of Inspector General (OIG) reports annually on the most serious management and performance challenges the Department faces. OIG's reports include a brief assessment of the Department's progress in addressing the challenges. They also identify further actions that, if properly implemented, could enhance the effectiveness of the Department's programs and operations. For fiscal year (FY) 2021, OIG identified five management challenges the Department faces as it continues its efforts to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. These challenges are: (1) implementing the Coronavirus Aid, Relief, and Economic Security Act (CARES Act); (2) oversight and monitoring; (3) data quality and reporting; (4) improper payments; and (5) information technology security. OIG included implementation of the CARES Act as a new challenge for FY 2021 because of its breadth, complexity, and overall impact on the Department's programs, operations, and responsibilities. The remaining four challenges were included in OIG's FY 2020 report. While the Department made progress in addressing these challenges, OIG's work continued to identify vulnerabilities within each area. [For the FY 2020 report, see ED621360.]