U.S. Securities and Exchange Commission

Management Report to Accompany 

the Office of Inspector General 

Semiannual Report to Congress

for the period October 1, 2021 through March 31, 2022

May 2022
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U.S. SECURITIES AND EXCHANGE COMMISSION

Management Report to Accompany the 

Office of Inspector General Semiannual Report to Congress

October 1, 2021 – March 31, 2022

Section 5(b) of the Inspector General Act of 1978, as amended, (Inspector General Act), requires the 

Commission to transmit to the appropriate committees or subcommittees of the U.S. Congress a 

Management Report, containing certain statistical tables and any comments deemed appropriate, to 

accompany the Office of Inspector General’s (OIG’s) Semiannual Report. This Management Report 

presents the required information for the reporting period of October 1, 2021 through March 31, 

2022. 

I. Overview of SEC Audit Follow-up Activities 

The SEC is committed to timely completion of corrective actions on OIG audit recommendations. At 

the commencement of this semiannual reporting period, there were 44 open OIG recommendations. 

During the period, management succeeded in obtaining OIG concurrence to close 23

recommendations. Of the 23 closed recommendations, management submitted 9 (or 39 percent) 

completed corrective actions to OIG for review and concurrence to close in less than one year. The 

SEC also received 3 new OIG reports during the reporting period containing a total of 22

recommendations for improvement to the agency’s processes and programs. At period-end, final 

action was pending on 43 recommendations from 12 reports. One recommendation was pending 

OIG concurrence for closure.

II. Reports with Monetary Savings

Sections 5(b)(2) and (3) of the Inspector General Act require the SEC Management Report to include 

statistical tables summarizing the progress that the agency has made in responding to audit, 

inspection, and evaluation reports containing “disallowed costs” and “recommendations that funds 

be put to better use.”

Disallowed Costs. The term “disallowed costs” means a questioned or unsupported cost that 

management, in a management decision, has sustained or agreed should not be charged to the 

agency. For OIG reports that contain questioned or unsupported costs, SEC management will review 

the facts and determine whether such costs, and the extent to which, should be disallowed. If the 

SEC agrees that such costs should be disallowed, the agency will then evaluate whether to attempt to 

recover such costs. 

During the reporting period, OIG did not issue a report that contained any questioned or 

unsupported costs. In addition, there are no outstanding management decisions on questioned or 

unsupported costs identified in OIG reports issued prior to the reporting period. 

 
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Table 1. Status of Final Action on Audit, Inspection and Evaluation Reports 

with Disallowed Costs

(Reporting Period October 1, 2021 through March 31, 2022) 

Audit, Inspection and Evaluation Reports Number of 

Reports

Dollar Value of 

Disallowed Costs

A. For which final action had not been taken by the beginning of the reporting period 0 $0

B. On which management decisions were made during the reporting period 0 $0

C. For which final action was taken during the reporting period 0 $0

(i) Dollar value of disallowed costs that were recovered through collection, offsets, 

property in lieu of cash, or otherwise $0 

(ii) Dollar value of disallowed costs that were written off by management $0

D. For which no final action has been taken by the end of the period 0 $0

Recommendation that Funds be Put to Better Use. The term “recommendation that funds be put to 

better use” means a recommendation that funds could be used more efficiently if management took 

actions to implement and complete the accompanying recommendation. For OIG reports that 

contain recommendations that funds be put to better use, SEC management will review the facts 

and determine whether to implement such recommendations. 

During the reporting period, OIG did not issue a report that contained a recommendation that funds be 

put to better use as reflected in Table 2. 

Table 2. Status of Final Action on Audit, Inspection and Evaluation Reports 

with Funds Put to Better Use

(Reporting Period October 1, 2021 through March 31, 2022) 

Audit, Inspection and Evaluation Reports Number of 

Reports

Dollar Value of 

Funds Put to 

Better Use

A. For which final action had not been taken by the beginning of the reporting period 0 $0

B. On which management decisions were made during the reporting period 0 $0

C. For which final action was taken during the reporting period 0 $0

(i) Dollar value of recommendations that were actually completed 0 $0

(ii) Dollar value of recommendations that management has subsequently concluded 

should not or could not be implemented or completed 0 $0 

D. For which no final action has been taken by the end of the reporting period 0 $0

III. Reports on Instances of Whistleblower Retaliation

Section 5(b)(4) of the Inspector General Act requires the SEC Management Report to include a 

statement with respect to any settlement agreement entered into by the agency with an official found 

by the Inspector General to have engaged in retaliation against a whistleblower. The SEC has no such 

settlement agreements to report. 
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IV. Reports More than One Year Old with Pending Corrective Action

Section 5(b)(5) of the Inspector General Act requires the SEC Management

Report to include a statement with respect to audit reports on which management decisions have 

been made but final action has not been taken, other than audit reports on which a management 

decision was made within the preceding year. Table 3 presents the required information.

Table 3. Audits and Other Reports More than One Year Old 

(Reporting Period October 1, 2021 through March 31, 2022) 

Report No./Title Report 

Date

Funds Put 

to Better 

Use 

Disallowed 

Costs Status of Final Action

Report 546: Audit of SEC's 

Compliance with the Federal 

Information Security 

Modernization Act for Fiscal 

Year 2017 

3/30/2018 $0 $0 Eighteen of the report’s 20 recommendations have 

been closed with OIG’s concurrence. Since the last 

reporting period, the SEC’s Office of Information 

Technology (OIT) reports it has made substantial 

progress in addressing the remaining 

recommendations, and is currently working to 

finalize revisions to policies and procedures to 

address the remaining elements. OIT anticipates 

completing corrective actions for two

recommendations by the end of fiscal year 2022.

Report 549: The SEC Made 

Progress But Work Remains 

To Address Human Capital 

Management Challenges and 

Align With the Human Capital 

Framework

9/11/2018 $0 $0 Eight of the report’s nine recommendations have 

been closed with OIG’s concurrence. The SEC’s 

Office of Human Resources continues to work on 

the remaining recommendation, with anticipated 

completion by the fourth quarter of fiscal year 

2022. 

Report 552: Fiscal Year 2018 

Independent Evaluation of 

SEC’s Implementation of the 

Federal Information Security 

Modernization Act of 2014

12/17/2018 $0 $0 Nine of the report’s 11 recommendations were

closed with OIG’s concurrence by the end of the 

reporting period. One additional recommendation 

was closed in April 2022. OIT anticipates 

completion of corrective actions on the remaining 

recommendation in the third quarter of fiscal year

2022. 

Report 558: Fiscal Year 2019 

Independent Evaluation of 

SEC's Implementation of the 

Federal Information Security 

Modernization Act of 2014

12/18/2019 $0 $0 Seven of the nine recommendations have been 

closed with OIG concurrence. OIT has completed 

corrective actions and requested closure for the 

final two recommendations.

Report 559: The SEC's Office 

of Broker-Dealer Finances 

Provides Effective Oversight, 

But Opportunities To 

Improve Efficiency Exist

2/26/2020 $0 $0 Two of the three recommendations have been 

closed with OIG concurrence. SEC’s Division of 

Trading and Markets anticipates completion of 

corrective actions by the end of calendar year 

2022. 

Report 562: Opportunities 

Exist To Improve the SEC's 

Management of Mobile 

Devices and Services

9/30/2020 $0 $0 Three of the seven recommendations have been 

closed with OIG concurrence. Corrective actions 

addressing the remaining four recommendations 

are in progress, and OIT anticipates completion in 

Spring 2023.

Report 563: Fiscal Year 2020 

Independent Evaluation of 

SEC's Implementation of the 

Federal Information Security 

Modernization Act of 2014

12/21/2020 $0 $0 Five of the seven recommendations have been 

closed with OIG concurrence. OIT anticipates 

completion of one remaining recommendation by 

the end of calendar year 2022 and completion of 

the other recommendation by the Spring of 2023.