REPORT NO. 581 

JANUARY 29, 2024 

Opportunities Exist to 

Strengthen the SEC’s Office of 

Equal Employment Opportunity 

Programs and Operations 

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 OFFICE OF 

INSPECTOR GENERAL 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

 WASHINGTON, D.C. 20549 

M E M O R A N D U M 

January 29, 2024 

TO: Rita Sampson, Director, Office of Equal Employment Opportunity 

Mark Reinhold, Chief Human Capital Officer, Office of Human Resources 

FROM: Rebecca L. Sharek, Deputy Inspector General for Audits, Evaluations, 

and Special Projects, Office of Inspector General 

SUBJECT: Opportunities Exist to Strengthen the SEC’s Office of Equal Employment 

Opportunity Programs and Operations, Report No. 581 

Attached is the Office of Inspector General (OIG) final report detailing the results of our audit of 

the U.S. Securities and Exchange Commission’s (SEC) equal employment opportunity 

programs and operations. The report contains 17 recommendations addressed to the Office of 

Equal Employment Opportunity and/or the Office of Human Resources that should further 

strengthen controls over the SEC’s equal employment opportunity complaint program, antiharassment program, and equal employment opportunity-related training. 

On December 20, 2023, we provided management with a draft of our report for review and 

comment. In its January 19, 2024, response, management concurred with our 

recommendations. We have included management’s response as Appendix IV in the final 

report. 

Within the next 45 days, please provide the OIG with a written corrective action plan that 

addresses the recommendations. The corrective action plan should include information such 

as the responsible official/point of contact, timeframe for completing required actions, and 

milestones identifying how management will address the recommendations. 

We appreciate the courtesies and cooperation extended to us during the audit. If you have 

questions, please contact me or Eileen Kao, Audit Manager. 

Attachment 

cc: Gary Gensler, Chair 

Amanda Fischer, Chief of Staff, Office of Chair Gensler 

 Heather Slavkin Corzo, Policy Director, Office of Chair Gensler 

 Kevin Burris, Counselor to the Chair and Director of Legislative and 

 Intergovernmental Affairs 

 Scott Schneider, Counselor to the Chair and Director of Public Affairs 

 Philipp Havenstein, Operations Counsel, Office of Chair Gensler 

 Ajay Sutaria, Legal Counsel, Office of Chair Gensler 

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Ms. Sampson and Mr. Reinhold 

January 29, 2024 

Page 2 

Hester M. Peirce, Commissioner 

 Benjamin Vetter, Counsel, Office of Commissioner Peirce 

Caroline A. Crenshaw, Commissioner 

 Malgorzata Spangenberg, Counsel, Office of Commissioner Crenshaw 

Mark T. Uyeda, Commissioner

 Holly Hunter-Ceci, Counsel, Office of Commissioner Uyeda 

Jaime Lizárraga, Commissioner

 Laura D’Allaird, Counsel, Office of Commissioner Lizárraga 

 Parisa Haghshenas, Counsel, Office of Commissioner Lizárraga 

Megan Barbero, General Counsel 

 Elizabeth McFadden, Deputy General Counsel General Litigation, Office of the 

 General Counsel 

 Lisa Helvin, Principal Deputy General Counsel for Adjudication and Oversight, Office

 of the General Counsel 

 David Leviss, Associate General Counsel for Oversight and Investigations, Office 

of the General Counsel 

 Stephen Jung, Assistant General Counsel for Intragovernmental and 

Congressional Affairs, Office of the General Counsel 

Kenneth Johnson, Chief Operating Officer 

Shelly Luisi, Chief Risk Officer 

Jim Lloyd, Assistant Chief Risk Officer/Audit Coordinator, Office of the Chief Risk 

Officer 

Deborah J. Jeffrey, Inspector General 

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EXECUTIVE SUMMARY 

Opportunities Exist to Strengthen the SEC’s Office of Equal 

Employment Opportunity Programs and Operations 

REPORT NO. 581 | JANUARY 29, 2024 

WHY WE DID THIS AUDIT 

Federal laws and executive orders require 

that all federal personnel decisions 

(including hiring, advancement, retention, 

and other terms, conditions, and privileges 

of employment) be made free of 

discrimination on the basis of race, color, 

religion, sex, national origin, age, disability, 

genetic information, parental status, or 

retaliation. Federal agencies must promote 

equal employment opportunity, evaluate 

overall equal employment opportunity 

program effectiveness, identify and 

eliminate discriminatory practices, and 

prevent and address harassment and other 

prohibited conduct before it becomes 

severe or pervasive. At the U.S. Securities 

and Exchange Commission (SEC or 

Agency), the Office of Equal Employment 

Opportunity (OEEO) seeks to create and 

apply best practices to achieve equal 

employment opportunity in the SEC 

workplace and to support compliance with 

anti-discrimination laws. 

We conducted this audit to assess the 

effectiveness and compliance of OEEO’s 

operations and controls in support of the 

SEC’s equal employment opportunity 

program, including OEEO’s coordination 

and collaboration with other SEC offices 

and management. Specifically, we 

reviewed OEEO’s Equal Employment 

Opportunity Program, Anti-Harassment 

Program, and Barrier Analysis Program for 

the period between fiscal year 2021 and 

fiscal year 2022 (that is, October 1, 2020, 

through September 30, 2022). 

WHAT WE RECOMMENDED 

We made 17 recommendations to further 

strengthen the SEC’s controls over its equal 

employment opportunity complaint program, 

anti-harassment program, and equal 

employment opportunity-related training. 

Management concurred with our 

recommendations, which will be closed 

upon completion and verification of the 

proposed actions. This report contains nonpublic information about the SEC’s equal 

employment opportunity programs. We 

redacted the non-public information to 

create this public version. 

WHAT WE FOUND 

We found that the SEC implemented components of the U.S. Equal Employment 

Opportunity Commission’s (EEOC) model equal employment opportunity 

program. Nonetheless, opportunities exist to strengthen the SEC's OEEO 

programs and operations. 

For example, we evaluated a sample of harassment allegation cases initiated in 

fiscal years 2021 and 2022 and other aspects of the SEC’s anti-harassment 

program and concluded that improvements are needed to enhance the SEC’s 

anti-harassment program. Namely, the Agency failed to (a) prevent an 

appearance of a conflict of interest in its management of the anti-harassment 

program; (b) follow anti-harassment program policies and procedures; 

(c) establish guidance for processing conflict-of-interest cases in its antiharassment program; (d) maintain complete and accurate anti-harassment 

program documentation; (e) conduct training in response to harassment trends; 

and (f) maintain a required Privacy Act System of Records Notice for the antiharassment program. 

We also concluded that the SEC’s equal employment opportunity complaint 

program needs improvement because we identified (a) noncompliance with 

applicable federal and EEOC requirements, management directives, and/or 

guidance; (b) outdated and incomplete standard operating procedures; 

(c) participation in the SEC’s alternative dispute resolution program that fell short 

of the EEOC’s goal; (d) a lack of participant feedback to help assess program 

efficacy; and (e) annual equal employment opportunity policy statements that did 

not include all required principles. 

Several factors caused these conditions, including ineffectively designed and/or 

implemented controls, which impeded the effective functioning of the SEC’s antiharassment and equal employment opportunity efforts. 

In addition, because of employee turnover and other competing OEEO priorities, 

the SEC did not timely conduct equal employment opportunity training. 

Specifically, in 2022, the Agency did not offer No FEAR Act training to employees 

within two years as required. Further, OEEO did not timely provide all new 

managers and supervisors with an equal employment opportunity briefing. 

Without timely training, SEC employees may not be aware of their rights, and 

supervisors may unknowingly engage in unlawful behavior or improperly act 

upon or respond to an employee’s equal employment opportunity concern. 

Lastly, we identified challenges relating to OEEO’s work environment and its 

impact on the Office’s operational effectiveness. Resolution of these matters is 

beyond the scope of our work, however, information brought to our attention may 

hinder OEEO’s programs and operations and warrants management’s attention. 

We encouraged management to assess OEEO’s organizational culture and 

determine what opportunities and resources may assist in its organizational 

transformation efforts. 

For additional information, contact the Office of Inspector General at (202) 551-6061 or http://www.sec.gov/oig 

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SEC | OFFICE OF INSPECTOR GENERAL REDACTED FOR PUBLIC RELEASE January 29, 2024 | Report No. 581 

Contents 

Executive Summary ..................................................................................................................................... i 

Abbreviations ..............................................................................................................................................iii 

Background and Objectives ...................................................................................................................... 1 

Background ...................................................................................................................................... 1 

Objectives ........................................................................................................................................ 3 

Results ......................................................................................................................................................... 5 

Findings ....................................................................................................................................................... 6 

Finding 1. The SEC Implemented Components of EEOC’s Model Equal Employment 

Opportunity Program.............................................................................................................. 6 

Finding 2. Improvements are Needed to Enhance the SEC’s Anti-Harassment Program .............. 8 

Finding 3. The SEC’s Equal Employment Opportunity Complaint Program Needs Improvement...... 20 

Finding 4. The SEC Did Not Timely Conduct Equal Employment Opportunity Training ............... 30 

Other Matters of Interest .......................................................................................................................... 32 

Appendices................................................................................................................................................ 34 

Appendix I. Scope and Methodology ............................................................................................. 34 

Appendix II. Equal Employment Opportunity Complaint Process.................................................. 37 

Appendix III. OEEO Organizational Summary............................................................................... 38 

Appendix IV. Management Comments .......................................................................................... 39 

Figures and Tables 

Figure 1. Elements of a Model Equal Employment Opportunity Program ................................................... 1 

Table 1. Summary of OIG Analysis ............................................................................................................. 5 

Figure 2. SEC Alternative Dispute Resolution Participation Rate vs. EEOC Goal, FY 2021 to FY 2023.. 26 

Figure 3. Equal Employment Opportunity Complaint Process and Timeline ............................................. 37 

Table 2. OEEO Organizational Structure, FYs 2021 and 2022.................................................................. 38 

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Abbreviations 

EEOC U.S. Equal Employment Opportunity Commission 

FY fiscal year 

GAO U.S. Government Accountability Office 

MD Management Directive 

MOU Memorandum of Understanding 

No FEAR Act Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002 

OEEO or Office Office of Equal Employment Opportunity 

OIG Office of Inspector General 

SEC or Agency U.S. Securities and Exchange Commission 

SECOP SEC Standard Operating Procedures 

SORN System of Records Notice 

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Background and Objectives 

BACKGROUND 

Federal laws and executive orders require that all federal personnel decisions (including hiring, 

advancement, retention, and other terms, conditions, and privileges of employment) be made free of 

discrimination on the basis of race, color, religion, sex, national origin, age, disability, genetic information, 

parental status, or retaliation.1 The United States government promotes equal employment opportunity 

not simply as a matter of fairness, but as an economic imperative, to attract, develop, and maintain the 

best available talent.2 Guidance and regulations issued by the U.S. Equal Employment Opportunity 

Commission (EEOC) require Federal agencies to promote equal employment opportunity, evaluate 

overall equal employment opportunity program effectiveness, identify and eliminate discriminatory 

practices, and prevent and address harassment and other prohibited conduct before it becomes severe or 

pervasive.3 The EEOC’s Management Directive 715 (MD-715) sets forth six essential elements of an 

effective equal employment opportunity program and requires agencies to report annually on their 

progress.4 

Figure 1. Elements of a Model Equal Employment Opportunity Program 

A. Demonstrated 

commitment 

from agency

leadership 

B. Integration of

equal

employment

opportunity into 

the agency's 

strategic mission 

C. Management

and program

accountability 

D. Proactive 

prevention of

unlawful 

discrimination 

E. Efficiency 

F. Responsiveness

and legal

compliance 

Source: Office of Inspector General (OIG)-generated based on the EEOC’s Instructions to Federal Agencies for MD-715, Section I, 

The Model EEO Program. 

The U.S. Securities and Exchange Commission’s (SEC or Agency) equal employment opportunity policy 

expresses the Agency’s commitment to maintaining a workforce that is diverse, inclusive, and fosters a 

sense of belonging, wherein everyone enjoys equality of employment opportunity. The SEC’s Office of 

Equal Employment Opportunity (OEEO or Office) supports the implementation of this policy through 

creating and applying best practices to achieve equal employment opportunity in the SEC workplace and 

1 The Civil Rights Act of 1964, as amended, P.L. 88-352, 42 U.S.C. § 2000e, et seq. (July 2, 1964); Section 501 of the Rehabilitation 

Act of 1973, as amended, P.L. 93-112, 29 U.S.C. § 791 (September 26, 1973); the Americans with Disabilities Act Amendments Act 

of 2008, P.L. 110-325, amending 42 U.S.C. § 12101, et seq. (September 25, 2008); Genetic Information Nondiscrimination Act of 

2008, P.L. 110-233, 42 U.S.C. § 2000ff, et seq. (May 21, 2008); Executive Order 13152 (May 2, 2000). 

2 MD-715, Section 1, Element B. Furthermore, EEOC regulation mandates federal agency compliance with all EEOC-issued 

management directives and bulletins. 5 C.F.R. § 1614.102(e). 

3 29 C.F.R. §§ 1614.101-1614.110, U.S. Equal Employment Opportunity Commission Regulations, Federal Sector Equal 

Employment Opportunity, Subpart A—Agency Program to Promote Equal Employment Opportunity and the EEOC’s Instructions to 

Federal Agencies for MD-715, Section I, The Model EEO Program. 

4 The MD-715 model equal employment opportunity program was drafted pursuant to the Civil Rights Act of 1964, as amended, 

42 U.S.C. § 2000e, et seq.; Section 501 of the Rehabilitation Act of 1973, 29 U.S.C. § 791; and the Americans with Disabilities Act 

Amendments Act of 2008, P.L. 110-325, amending 42 U.S.C. § 12101, et seq. 

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supporting compliance with anti-discrimination laws.5 The Equal Employment Opportunity Director 

reports directly to the SEC Chair. By its charter, the Office is required to remain neutral and does not 

represent either management or employees.6 OEEO supports the SEC’s goals by leading and/or 

participating in the Agency’s (1) Equal Employment Opportunity Complaint Program, (2) Policy on 

Preventing Harassment Program (referred to hereafter as the “anti-harassment program”), and (3) Barrier 

Analysis Program.7 

Equal Employment Opportunity Complaint Program. OEEO is exclusively responsible for the SEC’s 

equal employment opportunity complaint program, which focuses on processing, resolving, and/or 

adjudicating complaints of unlawful employment discrimination in a neutral forum.8 This program offers 

multiple pathways to address a complaint. Informal approaches include counseling by an equal 

employment opportunity counselor or mediation through the SEC’s alternative dispute resolution program, 

referred to as the Conflict-to-Resolution program.9 If the matter is not resolved, the complainant may 

elect to proceed formally, with a fact-gathering investigation, culminating in a final written agency decision 

by an OEEO official.10 An aggrieved individual may also request a hearing before an EEOC 

administrative judge.11 

Anti-Harassment Program. The SEC’s anti-harassment program is intended to stop potentially 

harassing conduct before it rises to the level of harassment by becoming severe and/or pervasive.12 

OEEO is authorized to receive harassment allegations, but SEC policy limits its role to documenting 

allegations, sharing allegations with SEC managers, and conducting training and outreach to educate the 

SEC workforce about harassment prevention and applicable legal requirements. 

Barrier Analysis Program. OEEO’s Barrier Analysis Team studies whether Agency policies, 

procedures, or working conditions have inadvertently resulted in barriers for persons belonging to 

protected classes. The Barrier Analysis Team reports their results to SEC senior management, including 

5 OEEO Overview, https://www.sec.gov/page/eeosectionlanding (last accessed on September 19, 2023). 

6 Along with OEEO, the SEC’s Office of Minority and Women Inclusion and Office of Human Resources have specific and 

interrelated responsibilities to foster equal employment opportunity and focus on equal opportunity and diversity-related efforts in the 

Agency’s workforce. 

7 The equal employment opportunity complaint program is administered by OEEO’s Compliance and Resolution Branch. 

8 The equal employment opportunity process seeks to bring “full relief” to a prevailing complainant by placing them in the same 

position they would have been in had the discrimination not occurred. Full relief may be provided with remedies such as 

reinstatement, back pay, compensatory damages, and attorneys fees to the complainant; and corrective actions, such as requiring 

training and considering disciplinary actions for the offender and responsible management official. 

9 The SEC generally uses mediation as the alternative dispute resolution technique to help de-escalate and resolve workplace 

disputes that include allegations of employment discrimination. 

10 The complainant can appeal the final agency decision to the EEOC’s Office of Federal Operations no later than 30 days after the 

final order is received. During the scope of our work, either OEEO’s Deputy Director, Acting Director, or Director approved the 

SEC’s final agency decisions. 

11 See Figure 3 in Appendix II for a graphical representation of the pathways available to a complainant and the deadlines applicable 

to each. Some of these deadlines are jurisdictional, meaning that a complainant may forfeit rights if they fail to act timely. See, e.g., 

29 C.F.R. § 1614.105(a)(1). The employee must contact the SEC’s Equal Employment Opportunity Counselor within 45 days of 

alleged discriminatory action. 

12 SECOP 27-1, Procedures to Implement the SEC’s Policy on Preventing Harassment (April 6, 2021), defines equal employment 

opportunity-based harassment as any conduct that a reasonable person would consider offensive (or unwelcome based on a 

protected equal employment opportunity category (e.g., race, sex, national origin, etc.)). See SECOP 27-01, Section 9.4. 

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the Agency Chair, Chief Operating Officer, and the directors of the Office of Human Resources and the 

Office of Minority and Women Inclusion. 

Staffing and Resources. During fiscal years (FY) 2021 and 2022, OEEO’s organizational structure 

included 13 full-time government positions (three management and ten staff) and four contactor 

positions.13 Notwithstanding these approved slots, OEEO has faced turnover and vacancies in key 

positions. Two out of three management positions—the Director and Branch Chief positions—were 

vacant in FY 2021 and part of FY 2022. On April 30, 2021, the then OEEO Director transitioned to a new 

role in another SEC office and OEEO’s Deputy Director assumed the role of Acting Director while also 

retaining the responsibilities of Deputy Director. A permanent Director joined the SEC in February 2022. 

The Branch Chief position was also vacant for more than a year, requiring other OEEO personnel to 

absorb additional responsibilities. Lastly, between FY 2021 and August 2023, seven OEEO personnel 

left the Agency or moved to other SEC offices.14 

EEOC Technical Review. As part of the EEOC’s oversight responsibility of federal agencies’ equal 

employment opportunity programs, the EEOC assesses agencies’ compliance with its regulations and 

management directives. On February 22, 2023, the EEOC completed an assessment of the SEC’s 

compliance with EEOC regulations and management directives and identified deficiencies in the SEC’s 

equal employment opportunity program.15 Specifically, the EEOC found that (1) the SEC’s equal 

employment opportunity policy statement did not comply with EEOC guidance; (2) the SEC did not 

complete timely equal employment opportunity investigations in FY 2022; (3) the SEC did not issue timely 

final agency decisions on the merits during FYs 2021 and 2022; and (4) the SEC’s alternative resolution 

participation in the pre-complaint stage fell below the EEOC’s goal of 50 percent in FY 2022.16 On May 9, 

2023, OEEO responded to the EEOC’s findings with additional information and plans to address the 

deficiencies identified. In a November 6, 2023 letter, the EEOC noted that the SEC had demonstrated 

progress and was expected to establish plans with activities sufficient to make meaningful progress 

toward eliminating these deficiencies in its FY 2023 MD-715 report.17 

OBJECTIVES 

We conducted this audit to assess OEEO’s operations and controls in support of the SEC’s equal 

employment opportunity program—including coordination and collaboration with other SEC offices and 

management—to determine whether OEEO complies with applicable laws, regulations, guidelines, and 

reporting requirements and effectively supports the Agency’s strategic goals. 

13 Table 2 in Appendix III summarizes the OEEO organization, including positions and responsibilities. 

14 This includes retirements and transfers to other Federal agencies. 

15 While the EEOC assessed OEEO’s compliance with EEOC regulations and management directives, the scope of its assessment 

differed from ours. The EEOC’s assessment was based on reports provided by OEEO, such as the the annual Report on Equal 

Employment Opportunity Program, and the annual Federal Equal Employment Opportunity Statistical Report of Discrimination 

Complaints. As described in this report, our audit scope included a more in-depth review of the SEC’s equal employment 

opportunity complaint program, the anti-harassment program, and the barrier analysis program. 

16 The EEOC also questioned whether the SEC’s reporting structure complied with the Elijah E. Cummings Federal Employee 

Antidiscrimination Act of 2020 (H.R. 6395, Subtitle B), which amended the Notification and Federal Employee Antidiscrimination and 

Retaliation Act of 2002, P.L. 107-174. The EEOC later concluded that the SEC’s reporting structure was compliant. 

17 The EEOC MD-715 report is due by February 28 following the end of the FY that is being reported. 

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Our audit included OEEO’s activities between FYs 2021 and 2022 (that is, October 1, 2020, through 

September 30, 2022). We also monitored for updates in OEEO policies, procedures, and processes. 

Appendices I, II, and III of this report provide information about our methodology, our review of relevant 

internal controls, and prior coverage; the equal employment opportunity complaint process and 

timeframes; and the OEEO organization during FYs 2021 and 2022. 

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Results 

The SEC implemented portions of each of the six elements of the EEOC’s model equal employment 

opportunity program in FYs 2021 and 2022 but did not implement any of the elements in its entirety. In 

particular, we identified opportunities to improve the management of the SEC’s anti-harassment program 

and also found noncompliance with statutory requirements and federal guidelines concerning the SEC’s 

equal employment opportunity complaint program and related training. We discuss each of these issues 

in the report Finding sections referenced in Table 1 below. 

Table 1. Summary of OIG Analysis 

Legend: ● “Follows”—SEC policy or actions are consistent with EEOC guidelines. 

◑ “Partially Follows”—SEC policy or actions are consistent with some, but not all, EEOC guidelines. 

Selected Model Equal Employment Opportunity Program Elements and Related Compliance Indicators SEC 

Status 

Report

Finding 

Element A: Demonstrated Commitment from Agency Leadership 

A.1 Issue an effective, up-to-date equal employment opportunity policy statement ◑

Measure Not Met: The policy statement must include principles covered in EEOC MD-715 3 

A.2 Communicate equal employment opportunity policies and procedures to all employees ● 1 

Element B: Integration of Equal Employment Opportunity into the Agency’s Strategic Mission 

B.1 Reporting structure of the equal employment opportunity program complies with certain guidelines ● 1 

B.2 Issue strategic plan that references equal employment opportunity, diversity, and inclusion ● 1 

B.3 Sufficient budget and staffing exists to support the equal employment opportunity program ◑

Measure Not Met: Ensure timely, thorough, and fair processing of equal employment opportunity complaints 3 

Measure Not Met: Provide workforce with training on the equal employment opportunity program 4 

Measure Not Met: Manage an effective anti-harassment program 2 

Measure Not Met: Investigators receive 8 hours of refresher training 3 

Element C: Management and Program Accountability 

C.1 Establish procedures to prevent all forms of equal employment opportunity discrimination ◑

Measure Not Met: Require prompt inquiry of all harassment allegations 2 

Measure Not Met: Establish a firewall between the Equal Employment Opportunity Director and the AntiHarassment Coordinator 2 

Measure Not Met: Ensure that the anti-harassment program is informed of all equal employment opportunity 

counseling activity alleging harassment 3 

Element D: Proactive Prevention of Unlawful Discrimination 

D.1 Conduct a reasonable assessment to monitor progress toward achieving equal employment opportunity ◑

Measure Not Met: Measure the efficacy of the equal employment opportunity program through feedback 3 

D.2 Identify areas where barriers may exclude equal employment opportunity groups ● 1 

Element E: Efficiency 

E.1 Establish a neutral equal employment opportunity process ● 1 

E.2 Establish and encourage widespread use of a fair alternative dispute resolution program ◑

Measure Not Met: Annually evaluate the effectiveness of the alternative dispute resolution program 3 

E.3 Have effective and accurate data collection systems to evaluate the equal employment opportunity and antiharassment programs ◑

Measure Not Met: Have systems to accurately collect and monitor harassment allegations 2 

Element F: Responsiveness and Legal Compliance 

F.1 Comply with the law, including applicable regulations, management directives, and other written instructions ◑

Measure Not Met: Comply with all applicable requirements of 29 C.F.R. Part 1614 3 

Source: OIG-generated based on OIG fieldwork and aspects of the EEOC’s Instructions to Federal Agencies for MD-715, Section I, The 

Model EEO Program, as further discussed in this report. This table does not follow the organizational structure in EEOC MD-715, as it 

reflects elements and compliance indicators reviewed by the OIG. 

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Findings 

FINDING 1. THE SEC IMPLEMENTED COMPONENTS OF EEOC’S MODEL EQUAL 

EMPLOYMENT OPPORTUNITY PROGRAM 

The SEC took significant steps to implement portions of the EEOC’s six elements for a model equal 

employment opportunity program. In FYs 2021 and 2022, the Agency: 

1. Communicated equal employment opportunity policy statements to all employees. 

2. Maintained a reporting structure in which the OEEO Director reported to the SEC Chair. 

3. Issued strategic plans that referenced equal employment opportunity, diversity, and inclusion. 

4. Followed a neutral equal employment opportunity process. 

5. Met reporting requirements, including those applicable to: 

• the annual Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002 

(No FEAR Act) report; 

• public posting of the Agency’s quarterly No FEAR Act data; 

• the annual Federal Equal Employment Opportunity Statistical Report of Discrimination 

Complaints (EEOC Form 462); and 

• the annual Report on Equal Employment Opportunity Program (MD-715 report).18 

Federal regulation and the EEOC’s MD-715 require agencies to conduct barrier analyses to identify the 

root causes of disparities in equal employment opportunity so that federal agencies can take actions to 

remedy the policies, procedures, and practices that lead to such disparities.19 During FYs 2021 and 

2022, OEEO completed two barrier analysis studies, one for accountants and one for attorneys. Neither 

identified barriers arising from any SEC policy, practice, procedure, or condition.20 

In September 2021, OEEO finalized its first strategic plan to support the Agency’s strategic plan and to 

serve as a blueprint for the SEC to promote equal opportunity in employment. However, the plan, which 

covered FY 2022 through FY 2024, did not include performance measures to gauge program success. 

During our audit, in June 2023, OEEO adopted a new strategic plan for FY 2023 through FY 2026 that 

includes measures of program effectiveness, such as quarterly reviews of the (1) percentage of 

counseling cases completed within 30 days or less; (2) number of report of investigations issued within 

18 The No FEAR Act, Public Law 107-174 (May 15, 2002), requires that federal agencies be publicly accountable for violations of 

anti-discrimination and whistleblower protection laws. Agencies must publicly report statistical data relating to equal employment 

opportunity complaints on a quarterly basis, with a comprehensive report to Congress on an annual basis. Furthermore, agencies 

use EEOC Form 462 to report information on pre-complaint and formal complaint activities, the status of complaint processing, and 

the disposition of complaints to the EEOC. Finally, EEOC MD-715 requires federal agencies to submit an annual report to the 

EEOC that evaluates whether agencies are establishing and maintaining effective equal employment opportunity programs. 

19 29 C.F.R § 1614.102(a)(3) and MD-715, Section I, Element B(D)(1)(b). 

20 OEEO completed an accountant barrier analysis and an attorney barrier analysis study on May 28 and December 9, 2021, 

respectively. 

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the applicable timeframe; (3) number of days it takes to complete complex and amended investigations; 

(4) number of final agency decisions issued within the applicable timeframe; (5) percentage of new 

supervisors OEEO briefed within three months; and (6) percentage of employees who completed No 

FEAR Act training. 

Despite these improvements in OEEO’s strategic planning and performance measures, as shown in 

Table 1 and as we note in Findings 2 through 4, the SEC has not fully implemented each of the six 

elements of a model equal employment opportunity program. Additional actions are needed to improve 

management of the Agency’s anti-harassment program, its equal employment opportunity complaint 

program, and equal employment opportunity-related training. 

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FINDING 2. IMPROVEMENTS ARE NEEDED TO ENHANCE THE SEC’S ANTIHARASSMENT PROGRAM 

The SEC Standard Operating Procedures 27-1 (SECOP 27-1) establishes the SEC’s anti-harassment 

program, allocating responsibilities for its implementation among OEEO, the Office of Human Resources, 

and the Office of the General Counsel. Harassment allegations may be reported to each of these offices 

and, in some circumstances, the OIG.21 The recipient then conducts intake, eliciting and reducing to 

writing the basic information about the events alleged.22 Promptly after assembling this information, 

representatives of OEEO, the Office of Human Resources, and the Office of the General Counsel meet to 

decide: (1) whether the alleged conduct falls within the policy; and (2) what next steps to take depending 

on whether the allegations if true could reasonably result in a personnel action.23 If a personnel action 

may be warranted, the Office of Human Resources, the Office of the General Counsel, or a management 

official conducts an investigation, performing fact-gathering and reaching conclusions.24 

OEEO is barred from investigating, and its only role following intake is to conduct educational awareness, 

which consists of informing the parties and any relevant others of the terms and substance of the policy 

and procedures; the rights and responsibilities of the complainant and the alleged harasser; how the 

alleged harasser's behavior might have been perceived and affected others; and reminders to avoid 

retaliation.25 Although OEEO may not prepare the final report on a matter, it does prepare a written 

summary of its educational awareness outreach, which is included in the final report.26 

To assess OEEO’s participation in the SEC’s anti-harassment program, we evaluated 27 harassment 

allegation cases, representing about 36 percent of all such cases initiated in FYs 2021 and 2022. We 

also assessed aspects of the anti-harassment program that were common to all cases, such as policies 

and procedures. 

We found the following deficiencies in the SEC’s management of its anti-harassment program. First, 

contrary to the EEOC guidance, OEEO did not prevent an appearance of conflict interest in its 

management of the anti-harassment program. Second, OEEO did not (a) establish and follow clear antiharassment program policies and procedures; (b) establish guidance for processing conflict-of-interest 

cases; (c) maintain complete and accurate anti-harassment program documentation as required by 

EEOC MD-715; (d) conduct training in response to harassment trends identified through the antiharassment program; and (e) maintain a required Privacy Act System of Records Notice (SORN) for the 

21 SECOP 27-1, Section 12.1.3. 

22 SECOP 27-1, Section 12.1.3 (this basic information includes the names of all involved individuals; the alleged conduct at issue; 

any initial steps taken; and any other relevant information). 

23 SECOP 27-1, Sections 12.1.4; 12.2.1-2. 

24 SECOP 27-1, Sections 12.4.2; 12.4.3. 

25 SECOP 27-1, Sections 12.2.2; 12.3. 

26 SECOP 27-1, Section 12.3.1 (report on awareness activities); Section 12.2.2 (OEEO’s involvment in inquiry is limited to sharing 

information from intake and educational awareness activities); Section 12.4.5 (OEEO will neither conduct investigations nor 

recommend corrective action); Section 12.7.1 (intake and educational awareness summaries prepared by OEEO may not serve as 

the final report). 

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anti-harassment program.27 Several factors caused these conditions which impeded the effective 

functioning of the SEC’s anti-harassment efforts. 

2a. OEEO Management’s Participation in the Anti-Harassment Program Created 

the Appearance of a Conflict of Interest 

OEEO administers two channels for addressing workplace harassment allegations—the anti-harassment 

program and the equal employment opportunity complaint program. Although employees may use both 

simultaneously, OEEO’s roles differ in the two programs. In the anti-harassment program, OEEO’s 

activities with respect to specific allegations are limited to conducting intake and educational awareness, 

whereas in the equal employment opportunity complaint program, OEEO must remain neutral and may 

be called upon to investigate and make findings regarding the alleged misconduct. Additionally, the goal 

of these two programs differs. The goal of the anti-harassment program is to prevent or stop conduct that 

is offensive or unwelcome on the basis of a protected equal employment opportunity category before it 

rises to the level of illegal harassment. Conversely, the goal of the equal employment opportunity 

complaint program is to determine whether illegal discrimination or harassment occurred. Program 

officials administering the equal employment opportunity complaint program must remain neutral, and 

participation by those program officials in determining whether the anti-harassment policies were violated 

would compromise that neutrality.28 For this reason, EEOC management directives and SEC policy 

require the decision makers in each program to remain independent of one another to prevent a conflict 

of interest. 

EEOC guidelines state that if the anti-harassment program resides within the equal employment 

opportunity office, the agency should consider either establishing a firewall between the anti-harassment 

coordinator and the equal employment opportunity Director or assigning only the investigation function to 

the equal employment opportunity office and allowing another office to decide whether to take corrective 

action.29 Moreover, EEOC MD-715 requires a firewall between the OEEO Director and Anti-Harassment 

Coordinator when the anti-harassment program resides within the equal employment opportunity office to 

prevent the equal employment opportunity Director from involvement in the day-to-day functions of the 

anti-harassment program.30 At the SEC, the Office of Human Resources and OEEO have both 

conducted investigations into anti-harassment program matters; however, only the Office of Human 

Resources serves as the subject-matter expert regarding questions of misconduct and the imposition of 

disciplinary action.31 Agency policy states that OEEO has no authority to conduct investigations within 

27 MD-715, Section 1, Element E(D)(1); SECOP 27-1, Section 12.5.6; P.L. 93-579, 88 Stat. 1896, 5 U.S.C. § 552a (December 31, 

1974). 

28 U.S. Equal Employment Opportunity Commission, Model EEO Programs Must Have an Effective Anti-Harassment Program, 

Appendix 3, https://www.eeoc.gov/federal-sector/model-eeo-programs-must-have-effective-anti-harassment-program (last accessed 

on January 31, 2023). 

29 U.S. Equal Employment Opportunity Commission, Model EEO Programs Must Have an Effective Anti-Harassment Program, 

Part I(C), https://www.eeoc.gov/federal-sector/model-eeo-programs-must-have-effective-anti-harassment-program (last accessed on 

January 31, 2023). 

30 MD-715, Section I, Element C(B)(1)(c). 

31 SECOP 27-1, Section 11.3. 

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the anti-harassment program, nor may OEEO recommend or impose disciplinary or corrective action, 

except with respect to OEEO employees.32 

Further, because the OEEO Director is responsible for providing timely counseling, investigations, and 

final agency actions related to the equal employment opportunity complaint program, EEOC MD-110 also 

requires the OEEO Director to ensure that there is no conflict of interest or appearance of such in the 

investigation of complaints, as agencies must administer a fair and impartial investigative process 

designed to determine the validity of complaints, while employing affirmative efforts to root out 

discrimination and ensure equal employment opportunity.33 SEC policy also prohibits OEEO personnel 

who process complaints under the equal employment opportunity complaint program from performing 

duties in the anti-harassment program (except for referring concerns that came to their attention back to 

the Anti-Harassment Coordinator).34 Doing so could allow for bias or contamination among program 

officials participating in both programs simultaneously, as the type of information shared in the antiharassment program may differ from the equal employment opportunity complaint program. 

Before FY 2022, OEEO’s firewall consisted of 

excluding the Deputy Director, who was responsible 

for the decision-making for the SEC’s equal 

employment opportunity complaint program, from 

participating in anti-harassment program activities. 

However, during FY 2022, we found that OEEO 

An effective firewall would prevent 

the OEEO Director from involvement 

in the day-to-day functions of the antiharassment program 

management involved in the equal employment 

opportunity complaint program also performed substantive duties in the anti-harassment program, which 

violated Agency policy.35 Specifically, there were four instances in which OEEO management had direct 

involvement with anti-harassment program cases. In one instance, the OEEO Director was involved in 

meetings with SEC management and the alleged harasser and oversaw the preparation of the summary 

memorandum to SEC management detailing the circumstances of the case. In the second instance, at 

the request of SEC senior leadership, the OEEO Director conducted an inquiry and prepared a summary 

report regarding an allegation of harassment. The summary report presented action plans discussed 

between the OEEO Director and the involved parties and documented further recommended actions to be 

taken by the involved parties. In the third instance, the OEEO Director met with the complainant, and in 

the fourth instance, the Branch Chief met with the individual alleging harassment because the AntiHarassment Coordinator was on leave. Moreover, the Director and the two other OEEO managers met 

weekly with anti-harassment program staff, where there were discussions of specific anti-harassment 

case information. The same leaders met weekly with the equal employment opportunity complaint team 

to discuss equal employment opportunity discrimination cases. 

We did not find evidence that OEEO officials reached a conclusion as to whether unlawful discrimination 

occurred in these four anti-harassment cases, or that the cases also proceeded in the equal employment 

32 SECOP 27-1, Sections 9.9; 11.2.4. 

33 MD-110, Chapter 1, Part IV. 

34 SECOP 27-1, Section 11.2.3.2. 

35 SECOP 27-1, Section 9.9. 

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opportunity complaint program. Therefore, we did not identify an actual conflict of interest. However, 

given these circumstances, OEEO management’s involvement in the anti-harassment program did not 

comply with EEOC MD-715 and MD-110 requirements, and their actions resulted in the appearance of a 

conflict of interest. EEOC guidance states that agency employees must have confidence that those 

agency officials processing equal employment opportunity complaints are neutral and are free from 

conflicts of interest, in appearance or fact.36 The OEEO Director’s participation in the anti-harassment 

program could erode employee confidence and the appearance of neutrality. 

When interviewed, the OEEO Director justified her day-to-day involvement in anti-harassment cases on 

the ground that she is responsible for being aware of everything that occurs in the Office. OEEO’s 

Director stated that these instances highlight why OEEO should not house the SEC’s anti-harassment 

program and why one of her initiatives upon on-boarding as OEEO Director in February 2022 was to 

conduct a review of the placement of the anti-harassment program within OEEO. The review resulted in 

several recommendations, including a recommendation for placing the program outside of OEEO. 

Accordingly, in January 2024, the SEC plans to move the anti-harassment program to the Office of 

Human Resources, and OEEO’s role will be limited to educating the workforce on harassment matters, as 

needed. Both offices are in the process of assessing the anti-harassment policy (discussed below in 

Finding 2b), infrastructure, and staffing needs for the evolving program. 

RECOMMENDATION, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To better manage the SEC’s anti-harassment program and depending on organizational responsibility for 

the program going forward, we recommend that OEEO or the Office of Human Resources: 

1. Immediately establish processes, such as developing a firewall to prevent the OEEO Director 

from participating in the day-to-day functions of the anti-harassment program, in order to avoid 

any actual or appearance of a conflict of interest. 

Management’s Response. Management concurred with the recommendation. According to 

Agency officials, OEEO and the Office of Human Resources will work together to address the 

OIG’s recommendations with respect to the Agency’s anti-harassment program as it transitions to 

the Office of Human Resources and communicate these changes to the workforce as 

appropriate. Management’s complete response is reprinted in Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

36 MD-110, Chapter 1, Part IV(C) and VI; U.S. Equal Employment Opportunity Commission, Model EEO Programs Must Have an 

Effective Anti-Harassment Program, Appendix 3, https://www.eeoc.gov/federal-sector/model-eeo-programs-must-have-effectiveanti-harassment-program (last accessed on January 31, 2023). 

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2b. Anti-Harassment Program Policies and Procedures Were Unclear and 

Disregarded 

The offices that share responsibility for administering the anti-harassment program (set forth in SECOP 

27-1) had differing understandings of their respective roles and responsibilities, risking gaps in 

coordination and execution of the program. In part because of these disagreements, OEEO assumed 

additional programmatic responsibility, exceeding its charge during the period we reviewed. 

According to an OEEO official, their practices thereafter more closely 

adhered to SECOP 27-1. 

According to SECOP 27-1, OEEO’s role and responsibility with respect to the anti-harassment program is 

limited to conducting intake and educational awareness, when appropriate or when requested by SEC 

management.37 We determined that OEEO’s involvement expanded impermissibly into fact-gathering 

and investigatory activities. For example, in about 37 percent (ten out of 27) of the anti-harassment 

program cases we reviewed, the Anti-Harassment Coordinator contacted knowledgeable individuals, 

including witnesses, collected factual information and evidence, and prepared a report at the conclusion 

of the 38 process. (b)(5)

OEEO personnel acknowledged conducting more than intake, which they justified on the ground that 

another SEC office did not have the subject matter expertise, bandwidth, support, or interest to conduct 

their assigned tasks related to the anti-harassment program. OEEO personnel further stated that an SEC 

office was not able to timely perform the investigatory activities contemplated by SECOP 27-1, leading 

OEEO’s Anti-Harassment Coordinator to assume those responsibilities. Furthermore, staff in the various 

offices did not agree on where one office’s responsibility ended and another’s began and, when asked, 

program officials had various interpretations of terms (such as “intake” and “inquiry”) used in SECOP 27-

1. Although SECOP 27-1 states that non-OEEO staff conduct fact-gathering and fact-finding 

investigations, it does not identify who is responsible for the inquiry process when an investigation is not 

needed. As such, some non-OEEO program officials considered the subsequent gathering of information 

from knowledgeable individuals to be part of the intake process.39 

While the need for timeliness recurs throughout the policy, OEEO’s assumption of post-intake 

responsibility did not guarantee timely processing of allegations. In 11 of the 27 cases we reviewed, 

OEEO personnel did not initiate an inquiry within the required ten calendar days. Instead, in these cases 

OEEO personnel took on average about 47 calendar days, ranging between 13 and 117 days, to initiate 

37 SECOP 27-1 indicates that “inquiry” includes steps the Agency takes to understand and respond to harassment allegations. This 

includes documenting information such as the person making the report, individuals who may be involved, the alleged conduct at 

issue, any initial steps taken in response to the alleged conduct, and any other relevant information. See SECOP 27-1, Section 

12.1.3. 

38 SECOP 27-1 indicates that the investigator, the Office of Human Resources or the Office of the General Counsel representative, 

or management representative is required to prepare a report at the conclusion of the investigation, documenting (1) the alleged 

harassment; (2) the scope of fact-gathering (including witnesses interviewed and documents reviewed); and (3) the investigator’s or 

management’s findings. See SECOP 27-1, Section 12.4.3.8. 

39 SECOP 27-1 provides examples of knowledgeable individuals, such as the person who reported the conduct, the alleged subject, 

and the supervisor(s) of the alleged harasser and subject. See SECOP 27-1, Section 12.4.1. 

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contact with a knowledgeable individual.40 Although the Anti-Harassment Coordinator was unable to 

explain or justify these delays, another OEEO official explained that the Anti-Harassment Coordinator’s 

unavailability was a contributing factor. 

Arguably, the lack of understanding in the program 

Untimely inquiries into alleged officials’ roles and responsibilities contributed to 

harassment may impact misunderstandings and noncompliance with 

ma SECOP 27-1. The policy emphasizes timeliness nagement’s ability to respond and 

indicating that the program goal is to work as investigate as appropriate swiftly as possible and to prevent potentially 

offensive conduct from escalating and/or recurring. 

Therefore, without a prompt response to alleged harassments, those knowledgeable about the events 

may become unavailable in the interim or their recollections may be impaired, undermining the SEC’s 

ability to reach fair, thorough, and reliable conclusions. Not only is it in the interest of the complainant 

and the accused that matters be resolved promptly; unresolved allegations may also affect the functioning 

of the affected offices. 

RECOMMENDATION, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To better manage the SEC’s anti-harassment program and depending on organizational responsibility for 

the program going forward, we recommend that OEEO and/or the Office of Human Resources: 

2. Coordinate with SEC offices and management who share responsibilities in the anti-harassment 

program to (a) update the policies and procedures to clarify key terms, roles, and responsibilities; 

(b) educate program officials on their roles and responsibilities; and (c) ensure established 

timelines are met. 

Management’s Response. Management concurred with the recommendation. According to 

Agency officials, OEEO and the Office of Human Resources will work together to address the 

OIG’s recommendations with respect to the Agency’s anti-harassment program as it transitions to 

the Office of Human Resources and communicate these changes to the workforce as 

appropriate. Management’s complete response is reprinted in Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

40 In another instance, OEEO made several attempts to contact the reporting individual but was unable to do so because the 

employee was on extended leave. However, OEEO personnel did not attempt to contact other knowledgeable individuals in a timely 

manner, resulting in an inquiry process of over 200 days. 

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2c. Guidance for Processing Conflict-of-Interest Cases Is Needed in the AntiHarassment Program 

During our audit, the SEC’s anti-harassment program received three allegations that presented a conflict 

of interest for OEEO. EEOC MD-110 and SECOP 27-1 state that a conflict of interest, real or perceived, 

can arise when the responsible management official who is alleged to have engaged in discriminatory 

conduct is within the equal employment opportunity office or has undue influence over agency personnel 

(such as the agency head).41 The EEOC further directs federal agencies to describe their processes for 

handling conflict-of-interest cases and to establish at least one official outside of the employees’ chain of 

command to receive claims of harassment.42 Additionally, the EEOC recommends that agencies define a 

conflict-of-interest case, create written policies and standard operating procedures for processing such 

cases, ensure confidentiality with respect to such cases, and create a detailed Memorandum of 

Understanding (MOU) between agencies who agree to mutually handle each other’s conflict-of-interest 

cases. Although SECOP 27-1 states that conflict-of-interest cases at the SEC will be handled in 

accordance with EEOC guidelines, the policy does not set forth how to accomplish this.43 During FYs 

2021 and 2022, the SEC’s anti-harassment program did not have an MOU in place with another agency 

to handle conflict-of-interest cases.44 

An OEEO official told us that the Office had not established an MOU for conflict-of-interest cases in the 

anti-harassment program because, in their view, other SEC management (such as management from the 

Office of Human Resources) should oversee the development of such an MOU without OEEO’s 

involvement. After a conflict-of-interest case was 

filed in FY 2023, the Office of Human Resources During FYs 2021 and 2022, the SEC signed an MOU with another federal agency to 

did not have an MOU in place to handle that particular investigation. Although not 

intended as a blanket MOU for future conflict-of- handle harassment allegations that 

interest cases, the January 2023 MOU was used posed a conflict of interest 

to handle two additional conflict-of-interest cases 

that arose later that year. 

Without established policies and procedures to address such allegations, the SEC may lose the 

opportunity to intervene to detect and prevent problems that may interfere with the Agency’s operations. 

Furthermore, an employee who believes that they have experienced harassment by a superior in the 

office in charge of the anti-harassment program may be understandably reluctant to report that 

harassment within that office. The staff may be subject to offensive and inappropriate conduct without 

41 MD-110, Chapter 1, Part IV.(B); SECOP 27-1, Section 13. 

42 U.S. Equal Employment Opportunity Commission, Best Practices in EEO Conflict Case Management for Federal Agencies; June 

2020 and the EEOC’s Enforcement Guidance: Vicarious Liability for Unlawful Harassment by Supervisors, Section V(C); June 1999. 

43 MD-110, Chapter 1, Part IV(B) states that, for example, when an equal employment opportunity complaint alleges that the Equal 

Employment Office Director or a member of his or her immediate staff discriminated, the Director shall recuse himself or herself and 

retain a third party to conduct the counseling and investigation and draft the final agency decision for the agency head to issue. 

44 During the period we reviewed, OEEO had four MOUs for assistance with various matters related to the equal employment 

opportunity complaint process. However, the MOUs did not cover anti-harassment program cases. 

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redress. When these issues are raised, handling them in an ad hoc manner can lead to delays and 

inconsistencies. 

RECOMMENDATIONS, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To better manage the SEC’s anti-harassment program and depending on organizational responsibility for 

the program going forward, we recommend that OEEO and/or the Office of Human Resources: 

3. Establish, implement, and communicate policies and procedures to process anti-harassment 

program cases that present a conflict of interest, and ensure the procedures align with EEOC 

requirements and guidance for anti-harassment programs. 

4. Establish a blanket Memorandum of Understanding with another federal agency and/or enter into 

other written agreements with other entities to process conflict-of-interest harassment cases in a 

timely manner. 

Management’s Response. Management concurred with the recommendations. According to 

Agency officials, OEEO and the Office of Human Resources will work together to address the 

OIG’s recommendations with respect to the Agency’s anti-harassment program as it transitions to 

the Office of Human Resources and communicate these changes to the workforce as 

appropriate. Management’s complete response is reprinted in Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendations will be closed upon completion and verification of the 

proposed actions. 

2d. OEEO Did Not Maintain Complete and Accurate Anti-Harassment Program 

Documentation 

The EEOC’s model program requires that agencies have effective and accurate systems to collect, 

monitor, and analyze harassment allegations.45 The SEC’s anti-harassment system is comprised of a 

spreadsheet to record and track harassment allegations and case files to store communications, including 

summaries and conclusion reports.46 Notably, SECOP 27-1 advises anti-harassment program officials to 

document, to the extent possible, information such as (1) the person who made the report; (2) the 

individual(s) who may be involved; (3) the alleged conduct at issue; (4) the date(s) of occurrence; (5) the 

protected equal employment opportunity basis, if applicable; and (6) any initial steps taken in response to 

the alleged conduct.47 Nonetheless, we determined that the SEC’s anti-harassment system did not 

45 MD-715, Section 1, Element E(D)(1). 

46 Information recorded and tracked includes case file numbers, the name of the OEEO employee who handled the concern, the 

division/office where the concern originated, the relevant equal employment opportunity basis(es), the date the case was opened, 

the date OEEO contacted the person who reported the conduct, the date the matter was closed, and the total days open. 

47 SECOP 27-1 clarifies that, under individual(s) who may be involved, program officials should document: name, position, 

employment status (i.e., staff or contract personnel), office/work location of the person making the report, the subject(s) of the 

alleged conduct (if different from the person making the report), the alleged harasser(s), and any witness(es) or others who may 

have knowledge of the conduct. See SECOP 27-1, Section 12.1.3.1. 

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completely or accurately capture data reported to OEEO, and case file documentation was not properly 

maintained. 

Complaint Tracking Information Was Incomplete and Inaccurate. OEEO’s tracking spreadsheet was 

missing data or contained inaccurate information—including key dates and the equal employment 

opportunity bases of the allegations—for about 81 percent (22 out of 27) of the cases that we reviewed. 

When asked, OEEO personnel stated inconsistencies and errors in documentation were caused by 

human error and due to a lack of standardized procedures to record information in the anti-harassment 

system. Additionally, OEEO does not conduct quality assurance reviews of the tracking data. 

Case File Documentation Was Incomplete and Inconsistent. SEC policy requires program officials to 

document the details of the alleged harassment during the intake process. Program officials rely on this 

information to decide whether an allegation is covered by the anti-harassment program and to determine 

next steps (i.e., investigation vs. another form of inquiry).48 We found that about 78 percent of the case 

files that we reviewed (21 out of 27) omitted available data supposed to be captured at the intake stage. 

In 17 of the 27 case files we reviewed (about 63 percent), OEEO did not document whether the 

allegations fell within the program. OEEO management attributed the omissions and inconsistencies in 

documentation to OEEO personnel’s lack of understanding of their roles and responsibilities related to the 

anti-harassment program. 

Furthermore, SEC policy dictates that, if 30 days have passed from when a decision was made on how to 

handle an allegation, all parties involved—reporting personnel, alleged harasser, and intake employee— 

shall be provided with regular updates on the investigation status. Nineteen of the cases we reviewed 

exceeded the 30-day timeframe and, in 12 of these 19 cases (about 63 percent), OEEO did not request, 

receive, or document investigative updates from SEC management. An OEEO staff member stated that, 

once SEC management takes the lead on the allegation, OEEO’s approach is to let SEC management 

handle the matter. 

Finally, we identified an instance in which OEEO staff did not maintain a case file documenting an 

allegation of harassment. The allegation was recorded in the tracking spreadsheet; however, the AntiHarassment Coordinator was unable to locate the corresponding case file and stated that it may have 

been electronically mislabeled, misfiled, or never created due to the transition between contractor 

personnel assisting with the program at the time 

the allegation was made. The Anti-Harassment OEEO could not locate one case file 

Coordinator believes the matter was addressed, documenting an allegation of as the case involved coordination with individuals 

harassment outside of OEEO who would have otherwise 

notified OEEO if the matter was still outstanding. 

Without complete and accurate anti-harassment program tracking information and case files, including 

thorough documentation of harassment allegations and determinations that allegations were covered by 

48 SECOP 27-1 states that program officials determine whether the allegations are covered by the anti-harassment program and, 

given the circumstances, determine whether an inquiry, investigation, intervention by management, and/or educational awareness is 

a sufficient response to address the harassment allegation. See SECOP 27-1, Section 12.2.3. 

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the program, program officials cannot assess what subsequent steps are appropriate, if any, to address 

the allegations. Further, without updates on investigations and reports from management, OEEO lacks 

assurance that corrective actions were prompt and appropriate to resolve allegations and prevent them 

from escalating.49 

RECOMMENDATION, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To better manage the SEC’s anti-harassment program and depending on organizational responsibility for 

the program going forward, we recommend that OEEO and/or the Office of Human Resources 

5. Develop and implement policies and procedures to ensure anti-harassment cases are 

consistently and accurately tracked and documented, including internal review processes. 

Management’s Response. Management concurred with the recommendation. According to 

Agency officials, OEEO and the Office of Human Resources will work together to address the 

OIG’s recommendations with respect to the Agency’s anti-harassment program as it transitions to 

the Office of Human Resources and communicate these changes to the workforce as 

appropriate. Management’s complete response is reprinted in Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

2e. OEEO Did Not Offer or Conduct Training in Response to Harassment Trends 

According to SECOP 27-1, OEEO offers training as part of the SEC’s proactive harassment prevention 

program. Moreover, division or office-wide training may be an appropriate corrective action if, for 

example, more than one employee in an SEC division or office has engaged in inappropriate conduct, 

does not know what conduct is appropriate and permissible, or appears unaware of how to properly 

respond to harassing conduct.50 

OEEO conducted some trainings in FYs 2021 and 2022; however, the trainings did not cover SECspecific harassment allegation topics reported in those years.51 For example, during those years, OEEO 

received 74 harassment inquiries, 17 of which (about 23 percent) were on the basis of sex. Despite this 

trend, OEEO trainings provided to the SEC 

workforce during the same time did not address OEEO did not provide training that 

that topic in its entirety. Furthermore, the training addressed recurring harassment OEEO offered did not address in detail other 

allegations protected equal employment opportunity bases, 

49 OEEO personnel stated that the SEC is working to acquire a case management application for the anti-harassment program. 

50 SECOP 27-1, Section 12.5.6; U.S. Equal Employment Opportunity Commission, Promising Practices for Preventing Harassment; 

p. 12, April 20, 2023. 

51 We observed that OEEO provides trainings and/or briefings on the following occasions: (1) when new employees are onboarded; 

(2) when new supervisors are promoted; (3) when providing mandated No FEAR Act training; and (4) by request from SEC division 

and office management. Furthermore, in FYs 2021 and 2022, OEEO conducted a Preventing Harassment and Retaliation 

presentation to some SEC offices. 

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specifically those that were among the most frequent bases for harassment at the Agency. Lastly, 

although we saw patterns of repetitive harassment allegations in some SEC offices, our review of antiharassment program case files did not find evidence that OEEO offered or provided those divisions or 

offices with educational awareness training responsive to the recurring issues. OEEO personnel 

explained that, since responsible management officials (not OEEO) determine appropriate corrective 

action(s), training is not provided unless requested by division or office management. 

Without proactive and responsive training that is targeted or tailored to the SEC’s current harassment 

allegations and/or trends, opportunities may be missed to enhance the Agency’s compliance efforts and 

prevent workplace harassment. Furthermore, employees may not recognize and prevent potentially 

offensive conduct or promptly report such conduct, which could impact the SEC’s ability to promote a 

work environment that is respectful and inclusive and allows employees to deliver maximum performance 

in support of the SEC’s mission.52 

RECOMMENDATION, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To better manage the SEC’s anti-harassment program and depending on organizational responsibility for 

the program going forward, we recommend that OEEO and/or the Office of Human Resources: 

6. Establish, as part of proactive prevention efforts, a process to periodically review reported 

harassment concerns and coordinate with divisions and offices to determine whether tailored 

training is needed, and then offer such training agencywide and/or to divisions and offices, as 

appropriate. 

Management’s Response. Management concurred with the recommendation. According to 

Agency officials, OEEO and the Office of Human Resources will work together to address the 

OIG’s recommendations with respect to the Agency’s anti-harassment program as it transitions to 

the Office of Human Resources and communicate these changes to the workforce as 

appropriate. Management’s complete response is reprinted in Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

2f. OEEO Did Not Maintain a Privacy Act SORN for the Anti-Harassment Program 

The Privacy Act of 1974, as amended (Privacy Act) provides safeguards against the misuse of records 

federal agencies maintain about individuals and requires agencies to notify the public about each system 

of records they maintain.53 Specifically, agencies must publish in the Federal Register a System of 

Records Notice (referred to as a SORN) that identifies the purpose of each system of records, the 

52 On October 19, 2023, an OEEO official stated that the Office is working to develop harassment prevention training for the entire 

SEC workforce beginning in FY 2024, as well as updating the Agency’s No FEAR Act training, to incorporate more content on 

harassment prevention and response. 

53 P.L. 93-579, 88 Stat. 1896, 5 U.S.C. § 552a (December 31, 1974). A “system of records” is "a group of any records under the 

control of any agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or 

other identifying particular assigned to the individual.” 5 U.S.C. § 552a(a)(5). 

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individuals covered by information in each system of records, the categories of records maintained about 

individuals, and the ways in which the information is shared. SORNs also notify the public of their rights 

and procedures under the Privacy Act for accessing and collecting information maintained by the agency 

on an individual. 

Historically, OEEO used the EEOC’s governmentOEEO relied on a government-wide wide SORN (EEOC/GOVT-1) for the SEC’s antiSORN that did not identify or protect harassment and equal employment opportunity 

information maintained under the complaint programs and did not have its own 

SORN for either program.54 However, the EEOC’s SEC’s anti-harassment program government-wide SORN does not cover 

information collected or maintained under the 

SEC’s anti-harassment program. Without a SORN specific to the anti-harassment program, the SEC was 

not in compliance with the Privacy Act.55 The lack of a SORN means the SEC had not notified those 

individuals whose information was collected under the SEC’s anti-harassment program and those SEC 

employees serving as custodians of that information of how that information may be legally collected, 

maintained, and disseminated. Ultimately, this means that sensitive information collected as part of the 

SEC’s anti-harassment program—including the names, positions, and employment status of individuals 

and witnesses who may be involved, the protected equal employment opportunity bases, and the 

allegations themselves—was at risk for compromise or misuse. 

Shortly after the arrival of the new OEEO Director in February 2022, the Office drafted a SORN for the 

SEC’s anti-harassment program. During our audit, the SORN was approved by the Commission and was 

posted as a Federal Register Notice on October 31, 2023. 

RECOMMENDATION, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To better manage the SEC’s anti-harassment program, we recommend that, after the program is moved 

to the Office of Human Resources, the Office of Human Resources: 

7. Review and update, as needed, the System of Records Notice for the anti-harassment program 

to ensure it reflects accurate information and safeguards all records collected under the program. 

Management’s Response. Management concurred with the recommendation. According to 

Agency officials, OEEO and the Office of Human Resources will work together to address the 

OIG’s recommendations with respect to the Agency’s anti-harassment program as it transitions to 

the Office of Human Resources and communicate these changes to the workforce as 

appropriate. Management’s complete response is reprinted in Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

54 EEOC/GOVT-1 Equal Employment Opportunity in the Federal Government Complaint and Appeals Records, 67 FR 49338, 

July 30, 2002, modified on November 17, 2016. 

55 5 U.S.C. § 552a(e)(4). 

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FINDING 3. THE SEC’S EQUAL EMPLOYMENT OPPORTUNITY COMPLAINT 

PROGRAM NEEDS IMPROVEMENT 

Federal agencies are prohibited from engaging in discrimination on the basis of race, color, religion, sex, 

national origin, age, disability, genetic information, parental status, or retaliation.56 EEOC regulations 

implement the federal workforce discrimination laws, and the EEOC’s management directives instruct 

federal agencies on administrative procedures for federal employee or applicant claims of employment 

discrimination.57 Furthermore, EEOC guidance addresses important legal issues and explains how the 

laws and regulations apply to specific workplace situations. 

An SEC employee, former employee, or job applicant who believes they have been discriminated against 

has the right to file an equal employment opportunity complaint with OEEO. The equal employment 

opportunity complaint process consists of an informal and a formal stage. The goal of the informal stage 

is to resolve the dispute(s) through equal employment opportunity counseling or alternative dispute 

resolution, which OEEO is responsible for offering. If the counseling or alternative dispute resolution 

does not resolve the dispute(s), the aggrieved individual may decide to proceed with filing a formal 

complaint with OEEO. 

To assess OEEO’s management of the equal employment opportunity complaint program, we reviewed 

12 informal complaints and 12 formal complaints, representing about 38 percent of all complaint cases 

initiated in FYs 2021 and 2022. We also assessed aspects of the SEC’s equal employment opportunity 

complaint program, such as policies and procedures, and program effectiveness. 

We found the following deficiencies in the SEC’s management of the equal employment opportunity 

complaint program. First, OEEO did not comply with federal and EEOC requirements, management 

directives, and/or guidance, as we found (a) instances where the written counselor report was not 

provided to the complainant; (b) a lack of referral to the Anti-Harassment Coordinator of a harassment 

claim brought during the counseling stage; (c) a missing acknowledgement letter or late 

acknowledgements to formal complaints of discrimination; (d) a lack of evidence that contracted 

investigators were properly trained; (e) an untimely equal employment opportunity investigation; and 

(f) incomplete complaint files. Second, OEEO’s informal and formal complaint standard operating 

procedures were outdated and did not cover all aspects of the equal employment opportunity complaint 

process. Third, the Agency’s use of the SEC’s alternative dispute resolution program at the informal 

complaint stage in FYs 2022 and 2023 was below the EEOC’s goal of 50 percent. Fourth, OEEO did not 

request participant feedback to measure the success of the equal employment opportunity complaint 

program. Lastly, contrary to EEOC requirements for the equal employment opportunity policy statement, 

the SEC’s FYs 2021 and 2022 policy statements omitted certain required principles. 

56 The Civil Rights Act of 1964, as amended, P.L. 88-352, 42 U.S.C. § 2000e, et seq. (July 2, 1964); Section 501 of the 

Rehabilitation Act of 1973, as amended, P.L. 93-112, 29 U.S.C. § 791 (September 26, 1973); the Americans with Disabilities Act 

Amendments Act of 2008, P.L. 110-325, amending 42 U.S.C. § 12101, et seq. (September 25, 2008); Genetic Information 

Nondiscrimination Act of 2008, P.L. 110-233, 42 U.S.C. § 2000ff, et seq. (May 21, 2008); Executive Order 13152 (May 2, 2000). 

57 The primary regulations addressing federal workplace discrimination claims are found in Title 29 of the Code of Federal 

Regulations (C.F.R.). 29 C.F.R. Part 1614. 

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These conditions occurred because OEEO's controls over the SEC’s equal employment opportunity 

complaint program were ineffectively designed and/or implemented. The absence of effective controls 

and program evaluation measures creates a heightened risk of recurring errors and noncompliance in the 

handling of future complaints. 

3a. OEEO Did Not Comply with Equal Employment Opportunity Regulations and 

EEOC Management Directives and Guidance 

In FYs 2021 and 2022, aggrieved SEC employees or applicants filed 39 informal complaints and 

25 formal complaints.58 We reviewed 12 of each type (or about 38 percent of all complaint cases) by 

verifying OEEO’s compliance with 29 C.F.R. Part 1614, applicable EEOC regulations, management 

directives, and guidance. As further described below, we observed a half dozen ways in which OEEO did 

not comply with statutory requirements, EEOC regulations, management directives, and/or guidance 

when processing informal and formal equal employment opportunity complaints. 

Written Counselor Report Was Not Always Provided. Federal regulations state that, when a 

complainant files a formal complaint, the Equal Employment Opportunity Counselor has 15 days to 

submit a written counselor report to the agency and the complainant.59 The report must include the 

claim(s) and basis(es) identified by the individual and the actions taken during counseling. However, we 

identified two instances in which OEEO did not comply with this requirement. In one of the instances, 

OEEO was unable to demonstrate that the counselor report was submitted to the complainant. In the 

other instance, the counselor provided the written report to the complainant 21 days after the filing of the 

formal complaint (or six days beyond the required timeframe). OEEO officials explained that the Equal 

Employment Opportunity Specialist was on leave when the formal complaint was filed and could not recall 

the circumstances surrounding the delay in issuing the counselor report. Without a timely counselor 

report detailing the counseling activities, the Agency and the complainant may not be able to determine 

whether all required counseling actions were taken, including whether the complainant opted to 

participate in traditional equal employment opportunity counseling or the Agency’s alternative dispute 

resolution program, where applicable. 

Anti-Harassment Coordinator Did Not Receive Notice of Harassment Allegations. According to 

EEOC MD-715, the equal employment opportunity office is required to notify the Anti-Harassment 

Coordinator when a complainant alleges harassment based on an equal employment opportunity 

protected class during the counseling process.60 In one instance, we found no record of such notice and 

OEEO was unable to provide an explanation for the lack of referral to the Anti-Harassment Coordinator. 

Further, OEEO has a harassment referral tracker to document equal employment opportunity complaint 

cases that were referred to the anti-harassment program and other SEC offices; however, this tracker 

was not used consistently. An OEEO staff member stated that the use of the tracker was not enforced 

58 This reflects complaints and the status of complaints initiated during our audit scope and may differ from information subsequently 

reported by OEEO. 

59 29 C.F.R. § 1614.105(c); MD-110, Chapter 2, Part IX, The EEO Counselor’s Report. 

60 MD-715, Section I, Element C(B)(1)(d). 

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throughout the Office and no new instructions were provided after the change in OEEO management. 

However, an OEEO official stated new leadership saw no need for additional direction as the standard for 

referral was unchanged and the tool remained available to the staff. 

Formal Complaints of Discrimination Were Not Always Acknowledged or Timely Acknowledged. 

EEOC MD-110 requires agencies to immediately acknowledge, in writing, their receipt of a formal 

complaint of discrimination.61 When asked, EEOC officials clarified that the expectation is that the 

acknowledgement occur at least within two weeks. On average, OEEO provided written 

acknowledgement within nine days.62 However, we found three instances in which OEEO personnel 

either never acknowledged receipt of a complaint or did not acknowledge it in a timely manner. 

In one instance, OEEO personnel did not provide the required acknowledgment letter to the complainant. 

OEEO took the position that, where the matter is outsourced to a third party due to OEEO’s conflict of 

interest, the third party is responsible for issuing the acknowledgment letter. Although the SEC’s MOU 

states that the third-party agency is responsible for providing all required documents in conflict-of-interest 

cases, the EEOC clarifies that the requesting agency is responsible for ensuring the third party adheres to 

the requirements established in the EEOC’s management directives.63 

Moreover, we identified two cases in which the acknowledgment letter was issued more than 30 days 

after OEEO received the formal complaint. In the first case, OEEO sent the acknowledgment letter 

32 days after receiving the formal complaint. OEEO personnel explained that work demands of an OEEO 

staff member balancing multiple priorities caused the delay during a period of management turnover. In 

the second case, the acknowledgement letter was sent 47 days after receiving the formal complaint. The 

delay occurred because OEEO was unable to timely execute an MOU with a federal agency to which it 

planned to outsource the matter and instead reverted to an agency with which it had previously entered 

into a case-specific MOU.64 

OEEO Lacked Evidence That Contracted Investigators Were Properly Trained. OEEO is required to 

certify annually to the EEOC that all equal employment opportunity counselors and investigators, whether 

contractors or SEC employees, are properly trained.65 We identified seven instances in which OEEO was 

unable to provide evidence of training certifications for the SEC’s contracted investigators. OEEO 

personnel justified this by stating that contractors agreed through contractual terms to maintain required 

certifications when providing investigative services. However, OEEO is responsible for certifying to the 

EEOC that its contract staff are properly trained. Without requesting and maintaining training 

certifications for contracted investigators, OEEO lacks assurance that its certifications are accurate. 

61 MD-110, Chapter 5, Part I. 

62 This average was calculated using 11 of the formal complaint files we reviewed, as OEEO was unable to provide the 

acknowledgement letter for the remaining complaint. 

63 MD-110, Chapter 1, Part IV(C)(1). 

64 As of July 6, 2023, OEEO had five MOUs with other federal agencies for the processing of conflict-of-interest cases. According to 

OEEO officials, the Office sought to expand the cadre of federal agencies with which it could work expeditiously to provide 

maximum flexibility. 

65 EEOC Form 462, Part III Section B, Agency and Contract Staff Training. As defined in 29 C.F.R. § 1614.103(b), all federal 

agencies and departments are required to file the EEOC Form 462 Report. 

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Equal Employment Opportunity Investigation Was Untimely. Equal employment opportunity 

investigations should be completed within 180 days of the date of filing of an individual complaint.66 

However, we identified an instance in which an investigation exceeded the 180-day timeline by one day 

but was reported to the EEOC as timely. OEEO acknowledged that the investigation was untimely and 

stated that it was because of a due date miscalculation. After this matter was brought to OEEO’s 

attention, the Office updated the SEC’s FY 2023, Quarter 2 No FEAR Act report to reflect the 

investigation as untimely. 

Complaint Files Were Incomplete. EEOC requirements state that equal employment opportunity 

complaint files must include all documents pertinent to the complaint.67 We observed seven instances in 

which the SEC’s equal employment opportunity complaint files were incomplete. Specifically, on five 

occasions, complaint files were missing the notice of incomplete investigation letter, in one instance the 

notice of right to file was missing; and in another instance the file was missing the required 

acknowledgment letter.68 OEEO personnel stated that they inadvertently did not complete or properly file 

the missing documents. 

Noncompliance with federal regulations, EEOC 

Noncompliance affects the SEC’s regulations, management directive and/or guidelines, 

ability to administer an effective equal including inconsistent complaint processes and/or 

employment opportunity program incomplete documentation, affects the SEC’s ability to 

administer a successful and effective equal 

employment opportunity program that secures appropriate relief for discrimination. 

RECOMMENDATIONS, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To improve the SEC’s equal employment opportunity complaint program, we recommend that OEEO: 

8. Develop and implement a review, monitoring, and validation process to ensure complaints, 

including those handled by other third-party agencies, are processed and files are maintained in 

accordance with all statutory and EEOC requirements. 

9. Develop and implement a process to ensure harassment allegations raised during the complaint 

process are tracked and promptly referred to the anti-harassment program. 

66 29 C.F.R. § 1614.108(e) and (f) state that a fact-gathering investigation should be completed within the earlier of 180 days after 

the filing of the last amendment to the complaint or 360 days after the filing of the original complaint. Regardless of amendment or 

consolidation of complaints, the investigation shall be complete in not more than 360 days. 

67 MD-110, Chapter 6, Part VIII(A) and (E). 

68 29 C.F.R. § 1614.108(f) and (g) states that if the agency is unable to complete the investigation within 180 days, as required, it 

shall issue a notice of incomplete investigation to the complainant. In cases where a complainant amends their complaint, the 

agency is provided with additional time to investigate, which is the shorter of 180 days from the date of the amendment, or 360 days 

from the date of the original complaint. However, the agency is still required to issue the complainant notice of the incomplete 

investigation due to the time extension resulting from the amendment. Also, 29 C.F.R. § 1614.105(d) states that a notice of right to 

file a discrimination complaint shall be sent to the complainant within 30 days of the date the complainant contacted the counselor if 

the matter was not resolved in the pre-complaint phase. 

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10. Develop and implement a process to ensure contractor training certifications (such as those for 

contracted counselors, mediators, and investigators) are requested and retained. 

Management’s Response. Management concurred with the recommendations. According to 

OEEO’s Director, in addition to implementing the OIG’s recommendations, OEEO will implement 

initiatives under its new strategic plan to timely resolve all equal employment opportunity 

concerns, maintain neutrality in adjudication of equal employment opportunity complaints, 

conduct analysis, and educate the workforce. Management’s complete response is reprinted in 

Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

3b. Standard Operating Procedures Were Outdated and Incomplete 

Although informal and formal complaint standard operating procedures were available during the period 

we reviewed, the procedures were outdated and did not cover all aspects of the equal employment 

opportunity complaint process.69 Specifically, the SEC did not update its equal employment opportunity 

counseling standard operating procedures to reflect changes in outsourcing certain Office functions. 

The standard operating procedures provided to us state that the SEC strives to have enough collateralduty equal employment opportunity counselors located throughout the country to handle all counseling 

matters at the Agency, ideally consisting of six counselors at headquarters and one or two at each 

regional office. The standard operating procedures were not updated when, in FY 2019, OEEO 

outsourced the counseling function. They were likewise not updated when, in March 2022, OEEO 

management moved counseling back in-house and consolidated counseling responsibility for 

headquarters and the regional offices under OEEO’s only Equal Employment Opportunity Specialist. 

Furthermore, OEEO has not updated the formal Employee turnover, including complaint standard operating procedures in more 

than nine years, and the procedures do not changes in management, delayed 

address the processing of conflict-of-interest updates to OEEO procedures 

cases. An OEEO official explained that changes 

in personnel, including management officials, and other competing needs, such as transitioning to a new 

complaint system, delayed updates to the standard operating procedures. 

OEEO’s policies and procedures must be updated to reflect its current practices. Otherwise, the Office 

risks errors when processing complaints. OEEO’s Director stated that updating policies and procedures 

was an organizational priority and indicated that the Office drafted new internal standard operating 

procedures and an operations manual, which will include a chapter on handling conflict-of-interest cases. 

69 OEEO procedures include (1) Standard Operating Procedures EEO Counseling (revised April 19, 2018); (2) Standard Operating 

Procedures Alternative Dispute Resolution (revised February 2019); (3) Standard Operating Procedures Formal Complaints (revised 

March 13, 2014); and (4) Standard Operating Procedures for Barrier Analysis (dated April 2015). 

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Moreover, the Office is drafting an SEC administrative regulation covering the complaint process and 

finalizing an SEC administrative regulation for the Agency's alternative dispute resolution program. 

RECOMMENDATIONS, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To improve the SEC’s equal employment opportunity complaint program, we recommend that OEEO: 

11. Finalize and distribute updated standard operating procedures for all complaint processes and 

ensure the policies align with OEEO’s current processes, to include defining conflict-of-interest 

cases and steps for processing such cases. 

12. Finalize and distribute the SEC administrative regulations for filing complaints of discrimination 

and the Agency’s Conflict-to-Resolution alternative dispute resolution program. 

Management’s Response. Management concurred with the recommendations. According to 

OEEO’s Director, in addition to implementing the OIG’s recommendations, OEEO will implement 

initiatives under its new strategic plan to timely resolve all equal employment opportunity 

concerns, maintain neutrality in adjudication of equal employment opportunity complaints, 

conduct analysis, and educate the workforce. Management’s complete response is reprinted in 

Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

3c. Participation in the SEC’s Alternative Dispute Resolution Program Has Not 

Met the Federal Goal 

The EEOC encourages the use of alternative dispute resolution to offer parties to discrimination and 

harassment allegations an opportunity for an early, informal resolution of disputes in a mutually 

satisfactory fashion.70 Federal regulations require agencies to establish or make available an alternative 

dispute resolution program during both the informal and formal complaint processes.71 In fact, an agency 

should aspire to use alternative dispute resolution in 50 percent of its informal complaints.72 

Use of the SEC’s alternative dispute resolution program at the informal complaint stage has declined in 

recent years and was below the EEOC’s goal of 50 percent for FY 2022 and FY 2023. See Figure 2. As 

discussed in the background section of this report, the EEOC’s most recent technical review of OEEO 

also cited the SEC’s decrease in alternative dispute resolution in FY 2022 as a source of concern. 

70 MD-110, Chapter 3, Part I. 

71 29.C.F.R § 1614.102(b)(2). 

72 U.S. Equal Employment Opportunity Commission, ADR Report: Part I –Alternative Dispute Resolution FY 2003 – FY 2004 

(September 2005). 

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Figure 2. SEC Alternative Dispute Resolution Participation Ratea vs. EEOC Goal, FY 2021 to FY 2023 

50% 50% 50% 

55% 

32% 

17% 

0% 

10% 

20% 

30% 

40% 

50% 

60% 

FY 2021 FY 2022 FY 2023 

EEOC Alternative Dispute Resolution Goal 

SEC Alternative Dispute Resolution Participation Rate 

Source: OIG-generated based on OEEO’s Complaint Dashboard through September 30, 2023. 

a The participation rate represents alternative dispute resolution conducted at the informal complaint stage based on total 

counseling cases. We rounded the rates presented to the nearest percentage point. 

OEEO staff told us that they attributed the limited use of alternative dispute resolution to their 

management’s preference for counseling, which can be completed more quickly. OEEO management 

reported that they offer alternative dispute resolution whenever management’s experience and analysis of 

a case suggests that it would be useful. OEEO provided a similar response to the EEOC, noting that, 

among other things, written materials provided during equal employment opportunity counseling explain 

the option of mediation. 

In its May 9, 2023, response to the EEOC, OEEO reported that the SEC’s alternative dispute resolution 

program was being revised under the leadership of an Alternative Dispute Resolution Program 

Manager—a senior attorney who is also an experienced mediator—expressing the expectation that the 

redesign and new training would encourage higher participation in mediation. Since that time, however, 

the Alternative Dispute Resolution Program Manager retired and has not been replaced.73 

Without OEEO leveraging circumstances in which 

The program manager responsible for alternative dispute resolution could provide a 

revising the SEC’s alternative dispute successful outcome, the SEC may miss 

resolution program retired and has not opportunities to resolve disputes cooperatively, in 

a manner satisfactory to both parties, without been replaced formal, adversarial proceedings. 

73 On November 1, 2023, an OEEO official informed us that the Conflict Resolution Program Manager interview process was placed 

on hold due to an SEC-wide hiring freeze. 

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RECOMMENDATION, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To improve the SEC’s equal employment opportunity complaint program, we recommend that OEEO: 

13. Reassess the SEC’s equal employment opportunity alternative dispute resolution program to 

(a) identify and leverage circumstances in which alternative dispute resolution is most successful 

during both informal and formal complaint processes; and (b) refresh and implement training for 

SEC managers and employees to encourage higher participation in the Agency’s alternative 

dispute resolution program. 

Management’s Response. Management concurred with the recommendation. According to 

OEEO’s Director, in addition to implementing the OIG’s recommendations, OEEO will implement 

initiatives under its new strategic plan to timely resolve all equal employment opportunity 

concerns, maintain neutrality in adjudication of equal employment opportunity complaints, 

conduct analysis, and educate the workforce. Management’s complete response is reprinted in 

Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

3d. Participant Feedback Is Needed to Assess the Equal Employment Opportunity 

Complaint Program Effectiveness 

The EEOC requires agencies to annually assess whether their equal employment opportunity complaint 

program complies with federal guidelines.74 According to OEEO management, the Office measures the 

effectiveness of its programs by completing the MD-715 annual self-assessment. We obtained and 

reviewed OEEO’s self-assessments for FYs 2021 and 2022 and concluded that OEEO could better 

assess its complaint process efficacy by soliciting feedback from equal employment opportunity complaint 

program participants. 

Participant feedback is a critical tool for evaluating the success of an equal employment opportunity 

program.75 In FYs 2021 and 2022, OEEO had, but did not use, forms to survey participants in its 

counseling and alternative resolution programs. OEEO attributed the lack of survey distribution to an 

oversight and changes in key employees in the alternative resolution program. 

In March 2023, OEEO backfilled a vacant Industrial/Organizational Psychologist position, whose 

responsibilities include developing new surveys for use after counseling, to assess alternative dispute 

74 EEOC’s Instructions to Federal Agencies for MD-715, Section I, The Model EEO Program. 

75 U.S. Equal Employment Opportunity Commission, An Evaluation of the Equal Employment Opportunity Commission Mediation 

Program, Section II (B), September 20, 2000 and OEEO’s counseling and mediation evalution forms. 

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resolution participation, and post-investigation. As of November 1, 2023, OEEO was developing new 

internal surveys to request participant feedback of the SEC’s equal employment opportunity programs.76 

Without surveying program participants or otherwise 

obtaining feedback on OEEO’s informal counseling, OEEO did not solicit participant 

alternative dispute resolution, and formal complaint feedback for the equal employment 

processes, OEEO may miss opportunities to improve the opportunity complaint program in 

SEC’s equal employment opportunity program.77 

FYs 2021 and 2022 

RECOMMENDATION, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To improve the SEC’s equal employment opportunity complaint program, we recommend that OEEO: 

14. Implement the use of participant surveys and/or other methods to solicit feedback from individuals 

who participated in the equal employee opportunity complaint program. 

Management’s Response. Management concurred with the recommendation. According to 

OEEO’s Director, in addition to implementing the OIG’s recommendations, OEEO will implement 

initiatives under its new strategic plan to timely resolve all equal employment opportunity concerns, 

maintain neutrality in adjudication of equal employment opportunity complaints, conduct analysis, 

and educate the workforce. Management’s complete response is reprinted in Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

3e. The SEC’s Annual Equal Employment Opportunity Policy Statements Did Not 

Include All Required Principles 

The EEOC requires agencies to issue an annual policy statement of their commitment to five equal 

opportunity principles: (a) equal employment opportunity for all employees and applicants for 

employment, regardless of their race, religion, color, sex (including pregnancy, gender identity, and 

sexual orientation), national origin, age, genetic information, or disability; (b) all employees will have the 

freedom to compete on a fair and level playing field with equal opportunity for competition; (c) equal 

employment opportunity covers all 

personnel/employment programs, management The SEC Chair issues an annual 

practices, and decisions, including, but not limited statement to declare and demonstrate a 

to, recruitment/hiring, merit promotion, transfer, 

commitment to EEOC principles reassignments, training and career development, 

benefits, and separation; (d) workplace 

76 As of September 5, 2023, OEEO’s contract mediators were required to send feedback surveys to alternative dispute resolution 

participants. 

77 As of September 5, 2023, OEEO’s contract mediators were required to send feedback surveys to alternative dispute resolution 

participants. 

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harassment will not be tolerated and the agency will correct the harassing conduct before it becomes 

severe or pervasive; and (e) reprisal against one who engaged in protected activity will not be tolerated, 

and the agency supports the rights of all employees to exercise their rights under the civil rights 

78 statutes. 

The SEC’s statements for FYs 2021 and 2022 omitted certain elements. Specifically, the FY 2021 

statement did not state that all employees will have the freedom to compete on a fair and level playing 

field with equal opportunity, and the FY 2022 statement did not explain that equal employment 

opportunity applies to all personnel actions, decisions, and conditions, including, but not limited to, 

recruitment/hiring, merit promotion, transfer, reassignments, training and career development, benefits, 

and separation. 

The EEOC’s technical assistance review in February 2023 reached similar conclusions. When notified of 

these deficiencies, an OEEO official stated that they were unaware that language was missing from the 

SEC’s statements and sought clarification. OEEO thereafter acknowledged the need to update the SEC’s 

equal employment opportunity policy statement and included the missing language in the SEC’s FY 2023 

statement.79 

The SEC’s annual equal employment opportunity policy statement, issued by the Chair, expresses the 

senior leadership’s commitment to a workplace that is diverse, inclusive, and fosters a sense of 

belonging, where everyone enjoys equality of employment opportunities. To set an appropriate tone at 

the top, that statement should include every one of the principles identified as important by the EEOC. 

RECOMMENDATION, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To improve the SEC’s equal employment opportunity complaint program, we recommend that OEEO: 

15. Develop and implement a validation process to ensure all required principles are included in 

future equal employment opportunity policy statements. 

Management’s Response. Management concurred with the recommendation. According to 

OEEO’s Director, in addition to implementing the OIG’s recommendations, OEEO will implement 

initiatives under its new strategic plan to timely resolve all equal employment opportunity 

concerns, maintain neutrality in adjudication of equal employment opportunity complaints, 

conduct analysis, and educate the workforce. Management’s complete response is reprinted in 

Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

78 MD-715, Section 1, Element A(A)(2). 

79 On October 19, 2023, the SEC Chair issued the Agency’s FY 2023 Equal Employment Opportunity Policy Statement. 

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Training informs employees of their 

rights and educates supervisors on 

legal requirements and prohibitions 

FINDING 4. THE SEC DID NOT TIMELY CONDUCT EQUAL EMPLOYMENT 

OPPORTUNITY TRAINING 

To strengthen agency accountability for nondiscrimination and whistleblower protection laws, the No 

FEAR Act requires biennial training for federal employees in the rights and remedies available to them.80 

The SEC’s No Fear Act training was delayed in FY 2022 and took place 28 months after the prior cycle, 

four months beyond the prescribed two-year period. The Office of Human Resources attributed the delay 

to personnel turnover. However, an OEEO official attributed it, at least in part, to OEEO’s failure to 

request the training, due to an erroneous belief that the Office of Human Resources would provide it 

automatically through the Agency’s training platform. The Office of Human Resources and OEEO told us 

that they now intend to assign No FEAR Act training to the SEC workforce every 18 months to be sure of 

meeting the two-year requirement. 

OEEO likewise did not meet its goal of providing 

individualized briefings to new supervisors within three 

months of their entrance on duty. Although the SEC 

onboarded or promoted 232 new supervisors in FYs 

2021 and 2022, as of June 2, 2023, more than half of 

them had not received the expected briefing. According 

to OEEO staff, the briefings were not provided due to competing OEEO priorities, a lack of personnel to 

deliver the briefings, absence of responses from new supervisors, and/or separation of supervisors from 

the SEC at the time of outreach. OEEO is considering revising a module in the Agency’s new supervisor 

training to integrate these subjects. 

Without timely training, SEC employees may not be aware of their rights, and supervisors—who play a 

key role in the success of the SEC’s equal employment opportunity program and are responsible for 

compliance with applicable laws, regulations, and policies—may unknowingly engage in unlawful 

behavior or improperly act upon or respond to an employee’s equal employment opportunity concern. 

RECOMMENDATIONS, MANAGEMENT’S RESPONSE, AND EVALUATION OF 

MANAGEMENT’S RESPONSE 

To support equal employment efforts at the SEC, we recommend that OEEO: 

16. Establish a process to timely coordinate with the Office of Human Resources to ensure No FEAR 

Act training is assigned and available to the SEC workforce no less than every two years. 

17. Evaluate available resources and establish a plan to prioritize new supervisor briefings such that 

briefings are provided to all new SEC supervisors in a timely manner. 

Management’s Response. Management concurred with the recommendations. According to 

OEEO’s Director, in addition to implementing the OIG’s recommendations, OEEO will implement 

initiatives under its new strategic plan to timely resolve all equal employment opportunity 

80 P.L.116-283, Title XI, Subtitle B (January 1, 2021) and 5 C.F.R. § 724.203(d). 

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concerns, maintain neutrality in adjudication of equal employment opportunity complaints, 

conduct analysis, and educate the workforce. Management’s complete response is reprinted in 

Appendix IV. 

OIG’s Evaluation of Management’s Response. Management’s proposed actions are 

responsive. The recommendation will be closed upon completion and verification of the proposed 

actions. 

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Other Matters of Interest 

During our audit, we identified challenges relating to OEEO’s work environment and its impact on the 

Office’s operational effectiveness. Although resolution of these matters is beyond the scope of our work, 

we believe that these issues warrant management’s attention. 

As previously mentioned, OEEO experienced turnover in a number of positions during FYs 2021 and 

2022, including at the management level, which affected priorities and strategic direction. In addition, 

during our audit (November 2022 to December 2023), four of OEEO’s ten employees either retired or 

transferred to other SEC offices. OEEO personnel told us that they experienced (1) a lack of 

communication; (2) unwillingness of staff to assist peers with mission-related work; (3) a lack of 

management receptiveness to staff feedback, resulting in a loss of institutional knowledge; (4) employee 

burnout; (5) a culture of little to no trust; (6) micromanagement; (7) low job satisfaction; and (8) a lack of 

cohesion among OEEO management, among other things. 

We observed that current management, in place since February and September 2022, has made efforts 

to transform the organization by drafting new policies and procedures, defining employees’ roles and 

responsibilities, relying on in-house expertise versus contractors for complaint processing, and filling 

vacancies. Implementing large-scale change management is not a simple endeavor, and the “people” 

element should remain an Office priority, as employees define the organization’s culture, drive its 

performance, and embody its knowledge base. Furthermore, as the U.S. Government Accountability 

Office (GAO) has reported, the key to a successful transformation is to implement strategies to help 

individuals maximize their full potential in the new organization, while simultaneously managing the risk of 

reduced productivity and effectiveness that often occurs as a result of the changes.81 

Significant employee turnover, as OEEO has experienced, can result in decreased productivity or 

efficiency, which in turn can result in decreased employee morale. As discussed in the Finding sections 

of this report, some of the issues we identified were caused by attempts to balance multiple and often 

competing priorities, complicated by difficulties moving forward when individual employees were 

unavailable. As Table 2 in Appendix III shows, at the time of our fieldwork, OEEO had one Equal 

Employment Opportunity Specialist responsible for all equal employment opportunity counseling, one 

attorney responsible for conducting and producing fact-gathering investigations, and one employee 

administering the anti-harassment program. Although others informally supported these key roles from 

time to time, the lack of alternate employees contributed to human errors, delays, and additional pressure 

on personnel. Lengthy vacancies, which sometimes exceeded a year, may have played a role in 

employees’ concerns, and created gaps in specialized knowledge, processes, and tasks, as well as in 

OEEO’s coordination with other SEC offices. 

Although we are not making recommendations related to these issues, we believe management should 

address them, including a focus on employee retention and creating contingency plans that assign 

81 U.S. Government Accountability Office, RESULTS-ORIENTED CULTURES Implementation Steps to Assist Mergers and 

Organizational Transformations (GAO-03-669, July 2003). 

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responsibilities if a key role in OEEO is vacated without advanced notice.82 Furthermore, we note that 

management is responsible for evaluating pressure on personnel to help personnel fulfill their assigned 

responsibilities in accordance with applicable standards of performance and conduct.83 We encourage 

management to assess OEEO’s organizational culture and determine what opportunities and resources 

may assist in its organizational transformation efforts. 

82 U.S. Government Accountability Office, Standards for Internal Control in the Federal Government (GAO-14-704G, September 

2014); Principle 3, Organizational Structure (3.03) and Principle 4, Demonstrate Commitment to Competence (4.08). 

83 U.S. Government Accountability Office, Standards for Internal Control in the Federal Government (GAO-14-704G, September 

2014); Principle 5, Enforce Accountability (5.08). 

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Appendix I. Scope and Methodology 

We conducted this performance audit from November 2022 to January 2024, in accordance with 

generally accepted government auditing standards. Those standards require that we plan and perform 

the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and 

conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable 

basis for our findings and conclusions based on our audit objectives. 

Objectives and Scope 

The overall objective of this audit was to assess OEEO’s operations and controls in support of the SEC’s 

equal employment opportunity program—including coordination and collaboration with other SEC offices 

and management—to determine whether OEEO complies with applicable laws, regulations, guidelines, 

and reporting requirements and effectively supports the Agency’s strategic goals. Specifically, we: 

• Reviewed OEEO’s Compliance and Resolution Program, including how complaints are received 

and addressed, and whether they are processed within the required timeframes; 

• Assessed OEEO’s Program for Preventing Harassment, including the intake and reporting 

processes and the Office’s involvement in harassment prevention education; and 

• Reviewed the OEEO Barrier Analysis Program’s compliance with applicable laws, regulations, 

and guidelines, to include barrier analysis and reporting efforts. 

The audit scope period included OEEO’s activities between FY 2021 and FY 2022 (that is, October 1, 

2020, through September 30, 2022). We also monitored for updates in OEEO policies, procedures, and 

processes. We did not review matters that involved OIG personnel or investigations. 

Methodology 

To address our objectives, among other work performed, we: 

• Interviewed SEC personnel from OEEO, the Office of Human Resources, the Office of the 

General Counsel, and the offices of Minority and Women Inclusion and Information Technology. 

• Interviewed EEOC officials to gain an understanding of agency roles and responsibilities with 

respect to managing an equal employment opportunity complaint program. 

• Reviewed applicable federal regulations, EEOC regulation, management directives, and 

guidelines, and Agency and OEEO policies and procedures. 

• Obtained access to and conducted walkthroughs of OEEO’s system for case management and 

complaint tracking, as well as the anti-harassment system. 

We also performed tests and assessments using judgmental or non-statistical samples of complaint and 

anti-harassment data. Specifically, we reviewed a judgmental sample of 12 of 39 informal complaints and 

12 of 25 formal complaints initiated during our scope period. We obtained these populations from reports 

generated by OEEO’s system for case management and complaint tracking, and we tested attributes to 

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complaints and formal complaints. We also reviewed a judgmental sample of 27 of 73 harassment 

allegations received by OEEO during our scope period.84 We obtained the population of allegations from 

the anti-harassment system, and we tested attributes to determine whether OEEO complied with 

applicable policies, procedures, and guidelines when handling allegations of harassment. 

Although these samples were non-statistical and our results cannot be projected to the total population for 

each test performed, the evidence we gathered helped support our findings, conclusions, and 

recommendations. 

Internal Controls 

We identified and assessed internal controls, applicable internal control components, and underlying 

principles significant to our objectives, as described below. 

Control Environment. We interviewed OEEO management and personnel to gain an understanding of 

the control environment and assessed the functioning of key controls. As Findings 2 and 3 describe, we 

found deficiencies in the design and functioning of controls related to the SEC’s anti-harassment program 

and the equal employment opportunity complaint program. We also identified deficiencies that may 

impact OEEO’s operational effectiveness as noted in the Other Matters of Interest. 

Risk Assessment. We obtained and reviewed OEEO’s FY 2021 and FY 2022 risk control matrices, 

which identified risks and controls related to the equal employment opportunity process, the antiharassment program, training and reporting requirements, and security of personally identifiable 

information. We assessed risks identified by the SEC and reviewed a system privacy plan, security 

assessment report, system security plan, system authorization to operate, and other information systems 

control documents for OEEO’s system for case management and complaint tracking. We also 

interviewed SEC personnel to identify risks related to the Agency’s equal employment opportunity 

complaint and anti-harassment programs. 

Control Activities. We reviewed applicable federal laws, regulations, and guidance; SEC policies and 

procedures; and OEEO risk and control matrices to identify and test key control activities. As Findings 2 

and 3 describe, we found deficiencies in the design and functioning of controls related to the SEC’s equal 

employment opportunity complaint and anti-harassment programs. We also tested information systems 

access controls to ensure personally identifiable information was safeguarded. 

Information and Communication. We met with personnel from other SEC offices to evaluate OEEO’s 

coordination and collaboration efforts and reviewed numerous relevant SEC communications to 

employees, including annual policy statements, frequently asked questions, an information portal on the 

SEC’s intranet, and information communicated via briefings and training. As Findings 2, 3, and 4 

describe, there are opportunities to improve OEEO’s communication with anti-harassment program 

officials, other SEC offices, all SEC employees, and newly appointed managers who play a key role in the 

Agency’s equal employment opportunity complaint program. 

84 Between FYs 2021 and 2022, OEEO received 74 harassment allegations. One of those allegations related to OIG personnel. As 

a result, we removed the allegation from the population and selected 29 other allegations to review. We later determined that two of 

the 29 allegations we selected for review related to OIG investigations; therefore, we excluded those two allegations from our 

review. 

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Monitoring. We reviewed OEEO’s internal control documentation, policies and procedures, and 

monitoring activities (including self-assessments and program reviews conducted by the EEOC) related to 

(1) the three OEEO programs we reviewed, and (2) OEEO’s oversight of internal and external vendors. 

As Finding 3 discusses, there are opportunities to strengthen OEEO’s monitoring activities to ensure 

complaints are processed and files are maintained in accordance with statutory requirements and EEOC 

guidance. We also identified opportunities for improved monitoring of OEEO’s programs and operations 

through feedback from equal employment opportunity complaint program participants. 

Based on the work performed, as noted in this report, we identified areas of potential improvement related 

to internal control deficiencies that were significant within the context of our audit objectives. Our 

recommendations, if implemented, should help OEEO better manage the anti-harassment program, 

comply with statutory requirements and guidance applicable to the equal employment opportunity 

complaint program, and implement equal employment opportunity training requirements. 

Data Reliability 

GAO’s Assessing Data Reliability (GAO-20-283G, December 2019) states reliability of data means that 

data are applicable for audit purpose and are sufficiently complete and accurate. Data primarily pertains 

to information that is entered, processed, or maintained in a data system and is generally organized in, or 

derived from, structured computer files. Furthermore, GAO-20-283G defines “applicability for audit 

purpose,” “completeness,” and “accuracy” as follows: 

“Applicability for audit purpose” refers to whether the data, as collected, are valid measures of the 

underlying concepts being addressed in the audit’s research objectives. 

“Completeness” refers to the extent to which relevant data records and fields are present and 

sufficiently populated. 

“Accuracy” refers to the extent that recorded data reflect the actual underlying information. 

To address our objectives, we relied on computer-processed data from OEEO’s system for case 

management and complaint tracking and anti-harassment data on OEEO’s shared drive. Specifically, we: 

• Interviewed knowledgeable OEEO and Office of Information Technology personnel responsible 

for entering data, managing access controls, and generating reports from relevant systems. 

• Reviewed relevant system user manuals and associated policies. 

• Reviewed the universe of informal and formal complaints and harassment allegations and tested 

for missing, duplicative, or irregular data or values. 

• Tested a judgmental sample of informal and formal complaints and harassment allegations, 

tracing each to source documents to verify the completeness and accuracy of the data. 

Based on the work we performed, we found the data sufficiently reliable for the purpose of this audit. 

Prior Coverage 

In 1996, the SEC OIG issued Equal Employment Opportunity Office (Report No. 224; November 2, 1996). 

GAO reports related to equal employment opportunity are available on GAO’s website. 

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Appendix II. Equal Employment Opportunity 

Complaint Process 

This appendix summarizes the equal employment opportunity complaint process and includes required 

timeframes (in calendar days) per 29 C.F.R. Part 1614. 

Figure 3. Equal Employment Opportunity Complaint Process and Timelinea 

Incident 

Pre-complaint Process 

45 days to Contact OEEO 

Counseling 

Notice of Right to File a 

Formal Complaint 

Alternative Dispute 

Resolutionb 

Formal Complaint Filed 

15 days 

Complaint Investigated and 

Report of Investigation 

Issued 

180-360 days 

Request for Final Agency 

Decision Request for Hearing 

30 days 30 days 

Final Agency Decision 

Issued 

Appeal to EEOC 

60 days 

30 days 

Civil Actionc 

Hearing and Decision 

Agency’s Final Order 

180 days 

40 days 

30 days 30 days 

30 days 90 days 

 

 

 

 

 

 

 

Source: OIG-generated based on OEEO complaint process flow chart. 

a This figure is not all inclusive. For related and alternative processes for addressing complaints, refer to 29 C.F.R. Part 1614, 

Subpart C, Related Processes. 

b Alternative dispute resolution is available at all stages of the complaint process. 

c Filing a civil action terminates EEOC processing of an appeal but not all cases result in a civil action. 

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Appendix III. OEEO Organizational Summary 

This appendix summarizes the OEEO organization during FYs 2021 and 2022 and shows the status of its 13 full-time positions (three management and ten 

staff) as of November 27, 2023. 

Table 2. OEEO Organizational Structure, FYs 2021 and 2022 

OEEO Group Position 

Status 

(as of 

11/27/23) 

Responsibilitiese 

Management 

Directora Filled Plans and establishes policy for the SEC’s equal employment opportunity program and directs, coordinates, controls, and 

evaluates the performance of OEEO staff operations. 

Deputy Director Filled Assists the Director in managing OEEO’s day-to-day operations and acts as an expert legal resource with respect to equal 

employment opportunity matters, providing authoritative legal advice and assistance. 

Branch Chiefa Filled Responsible for execution of OEEO’s equal employment opportunity complaint program and anti-harassment program. 

Equal 

Employment 

Opportunity 

Complaint 

Program 

Attorneyb Vacant Conducts formal investigations of complaints and serves as a legal adviser, rendering advice, counsel, and opinions to Agency 

officials regarding situations requiring an advanced level of experience and specialized knowledge of applicable law, regulations, 

Attorney Vacant policies, and precedent-setting cases. 

Equal Employment 

Opportunity Specialist Filled Conducts counseling and serves as a liaison for the SEC’s alternative dispute resolution program. 

Anti-Harassment 

Program Attorney Filled Serves as the Anti-Harassment Coordinator and conducts intake and training for that program. 

Barrier Analysis 

Program 

Senior Counsel Filled Conducts barrier analysis tasks and tasks in support of the SEC’s MD-715 report. Assumed some responsibilities of the Senior 

Counsel - Law, Education, and Policy when the individual who held that position retired. 

Industrial/Organizational 

Psychologista Filled Designs, conducts, or directs studies in support of the SEC’s equal employment opportunity programs and operations. 

Management and 

Program Analyst Filled Designs research, including statistical methodologies, and oversees contractors for barrier analysis projects. 

Program Support 

and Reporting 

Management and 

Program Analyst Filled Manages compliance reporting and assumed some responsibilities of another Management and Program Analyst position when the individual who held that position transferred to another SEC office. 

Management and 

Program Analystc Vacant Serves as a contracting officer’s representative and provides management and program analyses for OEEO program areas, 

including administrative services. 

Senior Counsel - Law, 

Education, and Policyd Vacant 

Responsible for internal and external policy, serves as a consultant on compliance-related matters, and is the OEEO record 

retention point of contact. Also serves as the Alternative Dispute Resolution Program Manager, assists with equal employment 

opportunity one-on-one briefings, and occasionally assists with the anti-harassment program. 

Source: OIG-generated based on OEEO’s organizational chart, performance work plans, and interviews with OEEO personnel. a While these positions were filled as of August 2023, they were vacant at some point during FY 2021 and/or FY 2022. b This attorney position became vacant at the end of 2023. 

c This position was repurposed to an equal employment opportunity attorney position in July 2023. d OEEO plans to repurpose this position to a conflict resolution program manager position in the future. e This table lists the primary responsibilities of each position. It is not reflective of all responsibilities. 

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Appendix IV. Management Comments 

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Major Contributors to the Report 

Eileen Kao, Audit Manager 

Lucia Fuentes, Auditor 

Steve Encomienda, Auditor 

Leann Harrier, Assistant Counsel to the Inspector General 

Comments and Suggestions 

If you wish to comment on the quality or usefulness of this report or suggest ideas for future audits, 

evaluations, or reviews, please send an e-mail to OIG Audit Planning at AUDplanning@sec.gov. 

TO REPORT 

fraud, waste, and abuse 

Involving SEC programs, operations, employees, 

or contractors 

FILE A COMPLAINT ONLINE AT 

www.sec.gov/oig 

CALL THE 24/7 TOLL-FREE OIG HOTLINE 

833-SEC-OIG1