U.S. Securities and Exchange Commission

Management Report to Accompany 

the Office of Inspector General 

Semiannual Report to Congress

For the period April 1, 2023 through September 30, 2023

November 2023
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U.S. SECURITIES AND EXCHANGE COMMISSION

Management Report to Accompany the 

Office of Inspector General Semiannual Report to Congress

April 1, 2023 – September 30, 2023

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

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

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

accompany the Office of Inspector General’s (OIG’s) Semiannual Report.1 This Management Report 

presents the required information for the reporting period of April 1, 2023 through September 30, 

2023. 

I. Overview of SEC Audit Follow-up Activities 

The SEC is committed to timely completion of corrective actions on OIG audit, inspection, and 

evaluation recommendations. At the commencement of this semiannual reporting period, there 

were 45 open OIG recommendations. During the period, management succeeded in obtaining OIG 

concurrence to close 35 recommendations. Of the 35 closed recommendations, management 

submitted 22 (or 63 percent) requests for closure in less than one year. The SEC also received 4 

new OIG reports during the reporting period containing a total of 2 recommendations for improving

the agency’s processes and programs. At period-end, final action was pending on 12

recommendations from 6 reports. One of those recommendations was pending OIG concurrence for 

closure.

II. Reports on Instances of Whistleblower Retaliation

Section 5(b)(3) of the Inspector General Act requires the SEC Management Report to include a 

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

found by the Inspector General to have engaged in retaliation against a whistleblower. The SEC has 

no such settlement agreements to report. 

III. Reports with Monetary Savings

Section 5(b)(2) of the Inspector General Act requires the SEC Management Report to include 

statistical information regarding any management decision or final action taken on each audit, 

inspection, or evaluation report on which final action had not been taken before the reporting 

period. The information required to be reported includes the dollar value of any “disallowed cost” 

or “recommendation that funds be put to better use.”

The Inspector General Act defines a “disallowed cost” as a cost questioned by the OIG that agency 

management has decided should not be charged to the agency. The Inspector General Act defines 

“recommendation that funds be put to better use” to mean an OIG recommendation that funds 

could be used more efficiently if management took actions to implement and complete the 

accompanying recommendation. During the reporting period, OIG did not issue a report that 

contained any questioned costs or any recommendations that funds be put to better use. In 

1 The SEC’s Management Response is based on the requirements of Section 5 of the Inspector General Act as 

amended by the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, Pub. L. No. 117-263, 

§ 5273, Dec. 23, 2022, 136 Stat. 2395, 3241. 
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addition, there are no outstanding management decisions on questioned costs or recommendations 

that funds be put to better use identified in OIG reports from prior reporting periods. 

Additional information regarding management decisions and final actions taken during the 

reporting period for reports on which final action had not been taken before the reporting period 

began is included below in the next section and Table 1.

IV. Reports with Pending Corrective Action

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

statement with respect to each audit, inspection, and evaluation report on which a management 

decision has been made but final action has not been taken. Table 1 presents the required 

information.

Table 1. Reports Pending Final Action at Start of Reporting Period 

(Reporting Period April 1, 2023 through September 30, 2023) 

Report No./Title for the 10 Reports with 

Pending Final Action at Start of Period Report Date

Status of Final Action

Final Action Completed: 5 Reports/ Pending at End of 

Period: 5 Reports

Report 546: Audit of SEC's Compliance 

with the Federal Information Security 

Modernization Act for Fiscal Year 2017

3/30/2018 Nineteen of the report’s 20 recommendations 

have been closed with OIG’s concurrence. 

Completion of corrective actions on the remaining 

recommendation is anticipated in fall 2023.

Report 559: The SEC's Office of BrokerDealer Finances Provides Effective 

Oversight, But Opportunities To Improve 

Efficiency Exist

2/26/2020 Final action taken during reporting period.

Report 562: Opportunities Exist To

Improve the SEC's Management of Mobile 

Devices and Services

9/30/2020 Six of the seven recommendations have been 

closed with OIG concurrence. Corrective actions 

addressing the remaining recommendation are in 

progress, with anticipated completion by the end 

of calendar year 2023.

Report 563: Fiscal Year 2020 Independent 

Evaluation of SEC's Implementation of the 

Federal Information Security 

Modernization Act of 2014

12/21/2020 Final action taken during reporting period.

Report 570: Fiscal Year 2021 Independent 

Evaluation of SEC's Implementation of the 

Federal Information Security 

Modernization Act of 2014

9/29/2021 Final action taken during reporting period.

Report 572: The SEC Can Improve in 

Several Areas Related to Hiring

2/28/2022 Final action taken during reporting period.

Report 574: Fiscal Year 2022 Independent 

Evaluation of the SEC’s Implementation of 

the Federal Information Security 

Modernization Act of 2014

11/15/2022 Eight of the 13 recommendations have been 

closed with OIG concurrence. Corrective actions 

addressing the remaining recommendations are in 

progress, with anticipated completion dates for 

four recommendations by the end of calendar 

year 2023 and one recommendation by fall 2025.

Report 575: SEC’s Whistleblower Program: 

Additional Actions Are Needed To Better 

Prepare for Future Program Growth, 

Increase Efficiencies, and Enhance 

Program Management

12/19/2022 Final action taken during reporting period.
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Report No./Title for the 10 Reports with 

Pending Final Action at Start of Period Report Date

Status of Final Action

Final Action Completed: 5 Reports/ Pending at End of 

Period: 5 Reports

Report 576: Enforcement Investigations: 

Measures of Timeliness Showed Some 

Improvement But Enforcement Can Better 

Communicate Capabilities for Expediting 

Investigations and Improve Internal 

Processes

2/15/2023 Completion of corrective actions on the three 

recommendations are anticipated by spring 2024. 

Report 577: The SEC Supported Federal 

Small Business Contracting Objectives, Yet 

Could Make Better Use of Data and Take 

Other Actions To Further Promote Small 

Business Contracting

2/28/2023 Seven of the report’s eight recommendations 

have been closed with OIG’s concurrence. 

Completion of corrective actions on the remaining 

recommendation is anticipated in fall 2023.

All management decisions for the listed reports were made during prior reporting periods. For the 

5 reports listed in Table 1 for which final action was taken during the reporting period, none of the 

reports involved any questioned costs or recommendations that funds be put to better use.

Section 5(b)(4)(A) of the Inspector General Act states that a report may be excluded from the list of 

reports pending final action if (i) a management decision was made on that report within the 

preceding year or (ii) the report is under formal administrative or judicial appeal or management 

has decided to pursue a legislative solution. In this report, the SEC did not exclude any such reports 

from this list.