U.S. Securities and Exchange Commission

Management Report to Accompany 

the Office of Inspector General 

Semiannual Report to Congress

for the period April 1, 2022 through September 30, 2022

November 2022
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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, 2022 – September 30, 2022

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

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

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

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

presents the required information for the reporting period of April 1, 2022 through September 30, 

2022. 

I. Overview of SEC Audit Follow-up Activities 

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

the commencement of this semiannual reporting period, there were 43 open OIG recommendations. 

During the period, management succeeded in obtaining OIG concurrence to close 14

recommendations. Of the 14 closed recommendations, management submitted 11 (or 79 percent) 

requests for closure in less than one year. The SEC also received 3 new OIG reports during the 

reporting period containing a total of 2 recommendations for improvement to the agency’s 

processes and programs. At period-end, final action was pending on 31 recommendations from 11

reports. Four of those recommendations were pending OIG concurrence for closure.

II. Reports with Monetary Savings

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

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

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

be put to better use.”

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

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

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

the facts and determine whether any or all of such costs should be disallowed. If the SEC agrees that 

such costs should be disallowed, the agency will then evaluate whether to attempt to recover such

costs. 

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

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

unsupported costs identified in OIG reports from prior reporting periods. 

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

with Disallowed Costs

(Reporting Period April 1, 2022 through September 30, 2022) 

Audit, Inspection and Evaluation Reports Number of 

Reports

Dollar Value of

Disallowed Costs

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

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

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

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

property in lieu of cash, or otherwise $0 

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

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

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

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

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

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

and determine whether to implement such recommendations. 

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

put to better use as reflected in Table 2. 

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

with Funds Put to Better Use

(Reporting Period April 1, 2022 through September 30, 2022) 

Audit, Inspection and Evaluation Reports Number of 

Reports

Dollar Value of 

Funds Put to 

Better Use

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

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

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

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

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

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

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

III. Reports on Instances of Whistleblower Retaliation

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

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

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

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

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

statement with respect to audit reports on which management decisions have been made but final 

action has not been taken, other than audit reports on which a management decision was made 

within the preceding year. Table 3 presents the required information.

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

(Reporting Period April 1, 2022 through September 30, 2022) 

Report No./Title Report 

Date

Funds Put 

to Better 

Use 

Disallowed 

Costs Status of Final Action

Report 546: Audit of SEC's 

Compliance with the 

Federal Information 

Security Modernization Act 

for Fiscal Year 2017 

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

been closed with OIG’s concurrence. Corrective 

actions on one of the remaining recommendation 

were completed in October 2022 and submitted for 

OIG review in a formal request for recommendation 

closure. Completion of corrective actions on the 

remaining recommendation are anticipated in Fall 

2023.

Report 549: The SEC Made 

Progress But Work Remains 

To Address Human Capital 

Management Challenges 

and Align With the Human 

Capital Framework

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

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

of Human Resources continues to work on the 

remaining recommendation, with anticipated 

completion by the end of calendar year 2022.

Report 552: Fiscal Year 

2018 Independent 

Evaluation of SEC’s 

Implementation of the 

Federal Information 

Security Modernization Act 

of 2014

12/17/2018 $0 $0 Ten of the report’s 11 recommendations have been 

closed with OIG’s concurrence. Corrective actions on 

the remaining recommendation were completed in 

October 2022 and submitted for OIG review in a 

formal request for recommendation closure.

Report 559: The SEC's 

Office of Broker-Dealer 

Finances Provides Effective 

Oversight, But 

Opportunities To Improve 

Efficiency Exist

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

with OIG concurrence. The SEC’s Division of Trading 

and Markets anticipates completion of corrective 

actions by the end of calendar year 2022. 

Report 562: Opportunities 

Exist To Improve the SEC's 

Management of Mobile 

Devices and Services

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

closed with OIG concurrence. Corrective actions 

addressing the remaining four recommendations are 

in progress, and anticipated completion in Spring 

2023. 

Report 563: Fiscal Year 

2020 Independent 

Evaluation of SEC's 

Implementation of the 

Federal Information 

Security Modernization Act 

of 2014

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

closed with OIG concurrence. OIT anticipates 

completion of one remaining recommendation by 

the end of calendar year 2022 and completion of the 

other recommendation by the Spring of 2023.

Report 568: Additional 

Steps Are Needed For the 

SEC To Implement a WellDefined Enterprise 

Architecture

9/29/2021 $0 $0 As of September 30, 2022, three of the report’s 

seven recommendations were closed with OIG’s 

concurrence. Three additional recommendations 

were closed in October 2022. Completion of 

corrective actions on the remaining recommendation 

is anticipated in the third quarter of fiscal year 2023.