Office of Inspector General—Office of Audit

OFFICE OF FEDERAL CONTRACT 

COMPLIANCE PROGRAMS 

RECOVERY ACT: ENFORCEMENT OF FEDERAL 

EQUAL EMPLOYMENT OPPORTUNITY LAWS 

This audit was performed by Ollie Green & Company, CPA’s, under contract to 

the Office of Inspector General, and by acceptance, it becomes a report of the 

Office of Inspector General. 

__________________________________ 
 

Assistant Inspector General for Audit 
 

Date Issued: March 31, 2011 

Report Number: 18-11-007-04-410 
 

U.S. Department of Labor 

Office of Inspector General 

Office of Audit 

BRIEFLY... 

Highlights of Report Number: 18-11-007-04-410, to the 

Director, Office of Federal Contract Compliance 

Programs. 

WHY READ THE REPORT 

Congress enacted the American Recovery and 

Reinvestment Act of 2009 (Recovery Act), to promote 

economic recovery and assist those impacted by the 

recession. Title VIII of the Recovery Act provided the 

Department of Labor (DOL) with $80 million for 

Departmental Management funds specifically for 

enforcement of worker protection laws in the Act. As 

part of its operating plan for the Departmental 

Management funds the U.S. Department of Labor 

allocated $7.2 million to the Office of Federal Contract 

Compliance Programs (OFCCP) for enforcement of 

Federal equal employment opportunity (EEO) 

requirements on Recovery Act contracts. 

WHY OIG CONDUCTED THE AUDIT 

The Office of Inspector General (OIG) conducted an 

audit to determine OFCCP’s activities to enforce 

compliance with Federal laws and an executive order 

on equal employment opportunity by Federal 

contractors that received Recovery Act funds. 

Specifically, our audit objectives were to answer the 

following questions: 

(1)What compliance evaluations had been conducted 

by OFCCP of contractors with Recovery Act funding, 

and what were the results of those evaluations? 

(2)What pre-award reviews of supply and service 

contractors with Recovery Act funding has OFCCP 

conducted, and what were the results of those reviews? 

(3)What outreach activities had OFCCP conducted for 

companies seeking Recovery Act contracts, and what 

were the results of those outreach activities? 

(4)What has been the impact of OFCCP’s increased 

workload due to the Recovery Act on the program’s 

ability to meet its regularly scheduled enforcement, 

compliance, and outreach activities? 

READ THE FULL REPORT 

To view the report, including the scope, methodology, 

and full agency response, go to: 

http://www.oig.dol.gov/public/reports/oa/2011/18-11-

007-04-410.pdf

March 2011 

Recovery Act: Enforcement of Federal Equal 

Employment Opportunity Laws 

WHAT OIG FOUND 

The OIG found that OFCCP adequately conducted 649 

Recovery Act compliance evaluations, 14 pre-award 

reviews, and 120 outreach activity events from 

Recovery Act inception (February 17, 2009) through 

October 31, 2010. This level of activity was consistent 

with OFCCP’s Recovery Act program goals. Our audit 

also found that OFCCP’s workload was not impacted by 

the Recovery Act workload. 

WHAT OIG RECOMMENDED 

There were no findings and recommendations as a 

result of this audit. 

The OFCCP agrees with the report results. 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

Prepared by Ollie Green & Company, CPA’s 

for the U.S. Department of Labor – Office of Inspector General 

Table of Contents 

Independent Auditor's Report ..................................................................................... 1 

Results In Brief.............................................................................................................. 2

Objective 1 — What compliance evaluations had been conducted by OFCCP of 

contractors with Recovery Act funding, and what were the results 

of those evaluations? .......................................................................... 3

OFCCP conducted 649 Recovery Act compliance evaluations to 

increase contractors’ awareness of their roles and responsibilities 

regarding EEO. ............................................................................................... 3

Objective 2 — What pre-award reviews of supply and service contractors with 

Recovery Act funding had OFCCP conducted, and what were the 

results of those reviews? .................................................................... 4

OFCCP conducted 14 pre-award reviews, resulting in one Letter of 

Compliance with a Conciliation Agreement..................................................... 4

Objective 3 — What outreach activities had OFCCP conducted for companies 

seeking Recovery Act contracts, and what were the results of 

those outreach activities? ................................................................... 5

OFCCP conducted 120 outreach activities to educate the public and 

interested parties about EEO requirements .................................................... 5

Objective 4 — What was the impact as a result of the Recovery Act on the 

program’s ability to meet its regularly scheduled enforcement, 

compliance, and outreach activities?................................................. 5

OFCCP’s regularly scheduled workload was not impacted by the 

Recovery Act workload.................................................................................... 5

Exhibit 

Exhibit 1 Outreach Activities Selected In Sample................................................. 9

Appendices 

Appendix A Background ..................................................................................... 13

Appendix B Objectives, Scope, Methodology, and Criteria ................................ 17

Appendix C Acronyms and Abbreviations .......................................................... 21

Appendix D OFCCP Response to Draft Report.................................................. 23

Appendix E Acknowledgements ......................................................................... 25

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Recovery Act: Enforcement of Federal EEO Laws 

Report No. 18-11-007-04-410 
 

Prepared by Ollie Green & Company, CPA’s 

for the U.S. Department of Labor – Office of Inspector General 

Independent Auditor’s Report 

Ms. Patricia A. Shiu 

Director Office of Federal Contract 

Compliance Programs 

U.S. Department of Labor 

200 Constitution Avenue, NW 

Washington, D.C. 20210 

The American Recovery and Reinvestment Act of 2009 (Recovery Act) was passed to 

preserve and create jobs, promote economic recovery, and assist those most impacted 

by the recession. Title VIII of the Recovery Act provided the Department of Labor with 

$80 million for Departmental Management Funds specifically for enforcement of worker 

protection laws in the Act. As part of its operating plan for the Departmental 

Management funds, the Department of Labor allocated $7.2 million to the Office of 

Federal Contract Compliance Programs (OFCCP) for enforcement of Federal Equal 

Employment Opportunity (EEO) requirements on Recovery Act contracts. 

The OFCCP is responsible for ensuring the compliance of Federal contractors and 

subcontractors with Federal EEO laws and with one executive order on affirmative 

action. To assist employers in meeting these requirements, OFCCP provides 

compliance assistance programs intended to increase awareness of the importance of 

monitoring workplaces to prevent discriminatory practices and behavior. 

In its initial operating plan submitted March 2009, the Department estimated that 

OFCCP’s EEO enforcement workload would increase by an additional 3,350 contractors 

and 15,070 facilities and construction sites because of Recovery Act contracts. These 

figures represented an increase from “some 28,000 contractors in 137,000 facilities and 

construction sites.” 

Our audit objectives were to determine (1) what compliance evaluations had been 

conducted by OFCCP of contractors with Recovery Act funding, and what were the 

results of those evaluations; (2) what pre-award reviews of supply and service 

contractors with Recovery Act funding had OFCCP conducted, and what were the 

results of those reviews; (3) what outreach activities had OFCCP conducted for 

companies seeking Recovery Act contracts, and what were the results of those 

outreach activities; and (4) what was the impact as a result of the Recovery Act on the 

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OFCCP’s ability to meet its regularly scheduled enforcement, compliance and outreach 

activities. 

To conduct our audit, we tested compliance evaluations, pre-award reviews, and 

outreach activities that occurred from February 17, 2009, (Recovery Act inception) 

through September 30, 2010, against Recovery Act provisions. We collected 

information from structured interviews with OFCCP officials and from other sources at 

OFCCP in national, regional, and district offices. 

RESULTS IN BRIEF 

OFCCP conducted 649 ARRA compliance evaluations. Our audit found that 51 of 131 

documented compliance evaluations selected in our sample resulted in the issuance of a 

Letter of Compliance. Another 67 resulted in the issuance of a Letter of Compliance with 

Conciliation Agreements for EEO violations. The remaining 13 were administratively 

closed. 

We also found that OFCCP conducted 14 Recovery Act Pre-Award Reviews. Our audit 

found that Letters of Compliance had been issued to 12 contractors reviewed signifying 

compliance with EEO Laws and Executive Order 11246. One contractor was issued a 

Letter of Compliance with a Conciliation Agreement for EEO violations. The remaining 

compliance evaluation was administratively closed because the contractor did not have 

50 employees. OFCCP provided sufficient evidentiary documentation to verify that 13 

pre-award reviews were adequately conducted. 

Our audit found that OFCCP conducted 120 outreach activities for contractors and other 

interested parties seeking Recovery Act contracts. OFCCP indicated in its Program 

Specific Recovery Act plan that 8,882 contractors and other interested parties attended 

its outreach activities. OFCCP provided sufficient documentation to verify that the 20 

outreach activities selected in our sample were properly conducted. 

Finally, our audit found that OFCCP’s ability to meet its regularly scheduled 

enforcement, compliance, and outreach activities was not negatively impacted by the 

additional Recovery Act workload. The fiscal year 2010 ARRA workload of regular 

4,377 compliance evaluations, pre-award reviews, and Functional Affirmative Action 

Plans (FAAP) remained virtually unchanged from the fiscal year 2008 pre-ARRA 

workload of 4,333. Our audit also found that OFCCP had received a budget increase 

that allowed it to hire additional staff to conduct evaluations and reviews. These funds 

were allocated to OFCCP in addition to the Recovery Act allocation. 

We determined that OFCCP conducted Recovery Act compliance evaluations, preaward reviews and outreach activities. At the same time they continued regularly 

scheduled enforcement, compliance, and outreach activities; therefore, the report does 

not include recommendations to DOL. 

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Prepared by Ollie Green & Company, CPA’s 

for the U.S. Department of Labor – Office of Inspector General 

The Office of Federal Contract Compliance Programs (OFCCP) was generally pleased 

with the results of the audit entitled "Recovery Act: Enforcement of Federal Equal 

Employment Opportunity Laws.” The audit also demonstrated that the agency exceeded 

its goals as described in the Plan and met all reasonable expectations of performance 

providing enforcement activities and compliance assistance for companies contracting 

with the Federal government via the Recovery Act. OFCCP’s comments are included in 

their entirety in Appendix D. 

There were no findings and recommendations as a result of this audit. The OIG has 

made technical changes to the report based on comments OFCCP provided in 

response to the draft report. We believe OFCCP enforcement of Federal EEO laws 

effectively complied with the Recovery Act activities funding requirements and funds 

were spent consistent with OFCCP’s Recovery Act program goals. 

RESULTS 

Objective 1 — What compliance evaluations had been conducted by OFCCP of 

contractors with Recovery Act funding, and what were the results 

of those evaluations? 

OFCCP conducted 649 Recovery Act compliance evaluations to increase 

contractors’ awareness of their roles and responsibilities regarding EEO. 

OFCCP conducted 649 compliance evaluations and exceeded the stated goal of 450. 

OFCCP achieved 144 percent (144%) of its program plan goals from Recovery Act 

inception to October 31, 2010. We obtained and reviewed 131 case files judgmentally 

selected to validate that OFCCP sufficiently documented the required scope of the 

compliance evaluation work. 

Federal contractors in receipt of Recovery Act funds must be compliant with EEO laws 

and regulations and ensure fairness in employment activities. Through compliance 

evaluations and outreach activities, OFCCP increased contractors’ awareness of their 

roles and responsibilities with its EEO laws and regulations. OFCCP conducted 

compliance evaluations of construction contractors, as well as supply and service 

contractors, who were in receipt of Recovery Act funding and grants. The majority of 

federal contractors were recipients of direct or federally-assisted funds for construction 

projects. Consequently, OFCCP placed a special emphasis on the construction 

industry. 

From our sample of 131 compliance evaluations, we found that 51 resulted in the 

issuance of Letters of Compliance. Another 67 resulted in the issuance of Letters of 

Compliance with Conciliation Agreements for EEO violations, while the remaining 13 

were administratively closed. OFCCP closed 11 of the 13 administratively because the 

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employer had less than 50 employees. OFCCP closed the remaining two for other 

reasons (see Table 1 below). 

Table1: Compliance Evaluations Selected In Sample and Results 

No. No. That No. That No. That Resulted 

Selected Resulted In Resulted In in 

Region & District In Letter of Conciliation Administrative 

Office Sample Compliance Agreement Closing 

Mid-Atlantic 

Baltimore 14 7 5 2 
 

Richmond 15 4 10 1 
 

Mid-West 

Chicago 60 19 32 9 
 

Detroit 4 2 2 
 

Pacific 

San Francisco 13 11 2 

Phoenix 25 8 16 1 

Total 131 51 67 13 

Objective 2 — What pre-award reviews of supply and service contractors with 

Recovery Act funding had OFCCP conducted, and what were the 

results of those reviews? 

OFCCP conducted 14 pre-award reviews, resulting in one Letter of Compliance 

with a Conciliation Agreement. 

We obtained and reviewed the case files for the 14 Recovery Act pre-award reviews 

conducted by OFCCP to verify that the file sufficiently documented the required scope of 

the pre-award review work. OFCCP conducted the 14 pre-award reviews of new 

Recovery Act supply and service contractors with contracts of $10 million or more and 

evaluated compensation practices of Recovery Act contractors. 

OFCCP issued Letters of Compliance to 12 of the 14 contractors reviewed signifying 

compliance with EEO Laws and Executive Order 11246. OFCCP issued one contractor 

a Letter of Compliance with a Conciliation Agreement for EEO violations and one 

compliance evaluation was administratively closed because the contractor did not have 

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Prepared by Ollie Green & Company, CPA’s 

for the U.S. Department of Labor – Office of Inspector General 

50 employees. OFCCP provided sufficient documentation to verify the adequacy of the 

pre-award reviews conducted. 

Objective 3 — What outreach activities had OFCCP conducted for companies 

seeking Recovery Act contracts, and what were the results of 

those outreach activities? 

OFCCP conducted 120 outreach activities to educate the public and interested 

parties about EEO requirements. 

We judgmentally selected a sample of 20 Recovery Act outreach activities and validated 

they were conducted as required by Recovery Act provisions. Exhibit 1 provides the list 

of Recovery Act outreach activities selected in our sample and details the number of 

attendees, dates, and locations for the outreach activities. Our audit found that OFCCP 

provided sufficient documentation to verify that the 20 outreach activities randomly 

selected in our sample were adequately conducted. Documentation provided also 

substantiated that 1,671 contractors and other interested parties had attended and 

received training. 

OFCCP indicated in its Program Specific Recovery Act Plan that it hosted 120 

compliance events, reaching 8,882 contractors, to educate the public and interested 

parties about EEO requirements in federal contracts. OFCCP worked with General 

Services Administration and state contracting agencies to participate in pre-construction 

conferences with general or prime contractors. This effort included meeting with union 

representatives to communicate requirements that must be adhered to by general and 

prime contractors. General and prime contractors have the responsibility of 

communicating EEO requirements to subcontractors. OFCCP provided assistance in 

preparing these notifications. 

Objective 4 — What was the impact as a result of the Recovery Act on the 

program’s ability to meet its regularly scheduled enforcement, 

compliance, and outreach activities? 

OFCCP’s regularly scheduled workload was not impacted by the Recovery Act 

workload. 

Table 2 below illustrates that OFCCP conducted 4,333 regularly scheduled evaluations 

and reviews from October 1, 2007, through September 30, 2008, (pre-Recovery Act 

period) and 4,377 regularly scheduled evaluations and reviews from October 1, 2009, 

through September 30, 2010, (Recovery Act era). We did not include a comparative 

analysis of the period October 1, 2008, through September 30, 2009, because we 

considered this a transition year for Recovery Act activity. As indicated in Table 2, 

OFCCP conducted 44 more regularly scheduled evaluations and reviews during the 

Recovery Act era than in the pre-Recovery Act period. OFCCP management indicated 

that OFCCP received a budget increase to hire additional staff to conduct evaluations 

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for the U.S. Department of Labor – Office of Inspector General 

and reviews. These funds were allocated to OFCCP in addition to the Recovery Act 

funds. Based on the pre-Recovery Act/Recovery Act era comparative workload 

analysis, OFCCP’s ability to meet its regularly scheduled enforcement, compliance, and 

outreach activities were not impacted as a result of the additional Recovery Act 

workload. Overall, regularly scheduled workload remained virtually unchanged. 

Table2: Pre-Recovery Act and Recovery Act Era Workload 

Pre-Recovery Act Recovery Act Era 

Workload Volume Volume Workload 

Type1 (10/1/07 to 9/30/08) (10/1/09 to 9/30/10) Variance 

Compliance Evaluations 4,125 4,166 41 
 

Pre-Award Reviews 134 185 51 

FAAP 74 26 (48) 

Total 4,333 4,377 44 

At the same time OFCCP continued regularly scheduled enforcement, compliance and 

outreach activities, we determined they conducted Recovery Act compliance 

evaluations, pre-award reviews and outreach activities. Therefore, the report does not 

include recommendations to DOL. 

We appreciate the cooperation and courtesies that OFCCP personnel extended to the 

Ollie Green & Company, CPA’s during this audit. Personnel who made major 

contributions to this report are listed in Appendix E. 

Ollie Green, MBA, CPA 

Managing Partner 

1

 This workload is regularly scheduled (non-Recovery Act) Workload. 

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for the U.S. Department of Labor – Office of Inspector General 

Exhibit 

Recovery Act: Enforcement of Federal EEO Laws 

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for the U.S. Department of Labor – Office of Inspector General 

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Prepared by Ollie Green & Company, CPA’s 

for the U.S. Department of Labor – Office of Inspector General 

Exhibit 1 

Outreach Activities Selected In Sample 

Outreach Activity 

Conducted 

By 

OFCCP 

Number of 

Contractor/ 

Other 

Attendees 

Date(s) 

Of 

Events 

Location(s) 

Of 

Events 

Hudson County Counsel’s Office (EEO Staff) 3 10/20/09 Jersey City, NJ 

ARRA-MEGA PROJECT–DBE-Pre-Bid 

Conference JV Barnrad/Judlau 100 10/23/10 Newark, NJ 

Compliance Assistance at the Safety 

NETworking Information Event 170 11/17/09 New York, NY 

ARRA Mega Mass Transit Tunnel Project 

Steering Committee Meeting 25 1/21/10 Newark, NJ 

ARRA Construction Webinar 415 3/16/10 Washington, DC 

ARRA Construction Webinar 10 3/30/10 Washington, DC 

Mid-Atlantic Regional ARRA Forum for 

Construction Contractors, Supply & Service 

Contractors and Community Based 

Organizations from Pennsylvania, Delaware 

and Maryland area. 120 11/4/09 Wilmington, DE 

ARRA Preconstruction Meeting 20 11/17/09 Virginia Beach, VA 

Homeless Veterans Workshop 110 8/11/10 Richmond, Va. 

Affirmative Action Plan development and 

Preparing for a Desk Audit for ARRA 

Contractors 5 8/12/10 Baltimore, MD 

How Diversity Positively Impacts 

Business/Frank K. Ross Scholastic 

Achievement Award Ceremony and 

Networking Reception 150 8/4/00 Chicago, IL 

Los Angeles District Office: Town Hall on the 

American Recovery and Reinvestment Act for 

Southern California Small Businesses 200 02/26/10 Los Angeles, CA 

Los Angeles District Office: EEO (including 

ARRA) Public Forum 50 03/11/10 Los Angeles, CA 

Los Angeles District Office: Century Training 

Organization 10 12/07/09 Los Angeles, CA 

Greater San Francisco/Bay District Office: 

GSA Small Business 100 02/10/10 San Francisco, CA 

Seattle District Office: ARRA Forum – 

Technical Assistance with Governor’s 

Marketplace 118 10/08/09 Portland, OR 

Engineering & Construction Mgmt (ECM)-

Compliance Assistance 3 2/22/10 New Orleans, LA 

C&C Technologies- Compliance Assistance 2 2/24/10 New Orleans, LA 

AARA Federal Department of Transportation 20 12/1/09 Orlando, FL 

Minact Incorporated 40 12/2/09 Jackson, MS 

1,671 

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Appendices 

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Prepared by Ollie Green & Company, CPA’s 

for the U.S. Department of Labor – Office of Inspector General 

 Appendix A 

Background 

The Recovery Act was signed into law by the President on February 17, 2009, to 

preserve and create jobs, promote economic recovery, and assist those most impacted 

by the recession. As of August 19, 2010, Congress provided $70.8 billion to DOL. See 

Table 3 below. 

Table 3: Department of Labor Recovery Act Funding, as of August 19, 2010 

Amount a 

Program (millions) Percent 

Unemployment Insurance & $65,996 93.17 

Training and Employment Services 3,950 5.58 

State Unemployment Insurance and Employment 

Service Operations 400 0.56 

Community Service Employment for Older Americans 120 0.17 

National Emergency Grants for Health Insurance 

Coverage 40 0.06 

Job Corps 250 0.35 

Departmental Management 80 0.11 

Total $70,836b 100.00 

a – The amounts other than “Unemployment Insurance and National Emergency Grants for Health Insurance 

Coverage” were obtained from the Recovery Act dated February 17, 2009. The “Unemployment Insurance” amount 

was provided by the Office of the Assistant Secretary for Administration and Management, and includes amounts 

made available for Federal and State Extended Benefits, Extension of Emergency Unemployment Compensation, 

and Federal Additional Unemployment Compensation programs. The National Emergency Grants for Health 

Insurance Coverage amounts were adjusted in United States Public Law 111-226 (HR1586). b – The total amount does not include $6 million provided to the OIG to provide oversight over the Department’s 

Recovery Act activities. 

The Recovery Act provided the U.S. Department of Labor (Department/DOL) with funds 

to, among other things, increase employment and training opportunities. The stated 

purposes of the Recovery Act were to: 

•	 Preserve and create jobs and promote economic recovery; 

•	 Assist those most impacted by the recession; 

•	 Provide investments needed to increase economic efficiency by spurring 
 

technological advances in science and health; and 
 

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•	 Invest in transportation, environmental protection, and other infrastructure 

that will provide long-term economic benefits; and stabilize state and local 

government budgets, in order to minimize and avoid reductions in essential 

services and counterproductive state and local tax increases. 

The Recovery Act required agencies to implement an unprecedented level of 

transparency and accountability to ensure the public could see where and how their tax 

dollars were spent and recipients of these funds delivered programmatic results. 

Title VIII of the Recovery Act provided the Department of Labor with $80 million for 

Departmental Management funds specifically for enforcement of worker protection laws 

in the Act. As part of its operating plan for the Departmental Management funds, the 

U.S. Department of Labor allocated $7.2 million to the Office of Federal Contract 

Compliance Programs (OFCCP) for enforcement of Federal equal employment 

opportunity (EEO) requirements on Recovery Act contracts. OFCCP’s Recovery Act 

Plan described how it would spend the $7.2 million it received under the Departmental 

Management appropriation. These activities included: 

•	 Conducting compliance evaluations of construction contractors with Recovery 

Act funding; 

•	 Conducting compliance evaluations of supply and service contractors with 
 

Federal contracts funded by the Recovery Act; 
 

•	 Conducting a limited number of pre-award reviews of new and service 
 

contractors with contracts of $10 million or more; 
 

• Evaluating compensation practices of Recovery Act contractors; 

•	 Scheduling outreach events for new contractors, current Federal contractors, 

Contracting Officers (at least 10 Federal Agencies) to educate them on EEO 

Requirements; and 

•	 Recommending enforcement for contractors where discrimination is identified or 

access denied and conciliation efforts have failed. 

As a result of the evaluations, OFCCP issued Letters of Compliance confirming that an 

evaluation was performed and that no evidence of discriminatory practices and behavior 

was found. In those instances where it was found, OFCCP enters into compilation 

Agreement with the contractors. 

The OFCCP is responsible for ensuring Federal contractors’ and subcontractors’ 

compliance with Federal EEO laws and one executive order on affirmative action. 

These laws and the order prohibit Federal employers and contractors from 

discriminating on the basis of race, color, religion, gender, national origin, disability and 

protected veterans’ status. They include Section 503 of the Rehabilitation Act of 1973, 

the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, and Executive Order 

11246. In addition to enforcing Federal EEO requirements, OFCCP provides 

compliance assistance programs to help employers monitor their workplaces to prevent 

discriminatory practices and behavior. 

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OFCCP administers its programs through a national office in Washington, D.C., and six 

(6) regional offices that cover 47 district offices. Compliance officers, investigators, and 

other field staff carry out compliance and enforcement actions. 

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 Appendix B 

Objectives, Scope, Methodology, and Criteria 

Objectives 

Our audit objectives were to determine: 

(1) & What compliance evaluations had been conducted by OFCCP of contractors with 

Recovery Act funding, and what were the results of those evaluations; 

(2) & What pre-award reviews of supply and service contractors with Recovery Act 

funding had OFCCP conducted, and what were the results of those reviews; 

(3) & What outreach activities had OFCCP conducted for companies seeking 

Recovery Act contracts, and what were the results of those outreach activities; 

and 

(4) & What was the impact as a result of the Recovery Act on the OFCCP’s ability to 

meet its regularly scheduled enforcement, compliance, and outreach activities. 

Scope 

Our performance audit period was from February 17, 2009, (the enactment of the 

Recovery Act) through October 31, 2010. We also reviewed non-ARRA evaluations 

from October 1, 2007, through, September 30, 2008. Our field verification work was 

conducted at the National Office in Washington D.C., the Mid-West Regional Office and 

five District Offices located within the following three Regions: 

• Region – 3 – Mid-Atlantic – Baltimore and Richmond; 

• Region – 5 – Mid-West – Chicago and Detroit; 

• Region – 6 – Pacific – San Francisco and Phoenix. 

The information in this report was developed by DOL-OIG independent of OFCCP. The 

DOL-OIG is legislatively independent and charged with performing independent audits 

of DOL. Ollie Green and Company under contract with the DOL-OIG collected 

information from structured interviews, OFCCP, OFCCP’s web-site, and field work 

conducted at the national, regional, and district offices from January 31, 2011, through 

February 25, 2011. Our performance audit was not designed to and we did not perform 

financial audits of the amounts obligated or expended by OFCCP. 

We conducted this performance audit 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 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. 

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Methodology 

Our methodology for this performance audit included the use of random sampling. 

Three separate universes were identified and used in developing the sampling plan. 

The first universe consisted of Recovery Act DOL compliance evaluations conducted by 

OFCCP from Recovery Act inception through October 31, 2010; the second universe 

consisted of Recovery Act DOL pre-award reviews of supply and service contractors 

conducted by OFCCP from Recovery Act inception through October 31, 2010; the third 

universe consisted of DOL outreach activities conducted from Recovery Act inception 

through October 31, 2010. The audit covered the period from Recovery Act inception 

(February 17, 2009) through October 31, 2010. 

We performed a data reliability assessment to ensure we were receiving complete and 

accurate data sufficient to conduct our audit. To determine whether the data was 

reliable, we met with the Deputy Director of OFCCP at the National Office to discuss 

controls over the processing and reporting of fiscal and performance data. To gain a 

better understanding of OFCCP’s processes and systems, we requested and received a 

description of systems and controls in place designed to ensure the integrity of data 

processed at national, regional, and district offices. We used checklists to assess the 

integrity of the information reviewed in each case file selected in our sample. If case file 

documentation was questionable or incomplete based on checklist requirements, we 

discussed concerns with Regional and/or District Directors and requested clarification 

and/or explanation. Based on this assessment, we concluded that the data received 

from OFCCP was sufficiently reliable for our audit purposes. 

For Recovery Act compliance evaluations, we used random sampling to select the 

Regions and Districts where the audit verification work was to be conducted. 

Depending on the district, we either selected all evaluations, a representative mix of 

supply and service and construction contractor evaluations, or just large construction 

contractor evaluations. For Recovery Act pre-award reviews, we selected all 14 

conducted by OFCCP during the audit period. For Recovery Act outreach activities, we 

judgmentally selected 20 of 120 events conducted by OFCCP during the audit period. 

Each sampling unit was tested for multiple characteristics to establish compliance with 

Recovery Act provisions. An explanation of the audit test results and relevance of the 

test to the audit’s objectives is provided in the body of the audit report. 

Our methodology also included assessing the impact of OFCCP’s increased workload 

due to the Recovery Act on the program’s ability to meet its regularly scheduled 

enforcement, compliance, and outreach activities. To conduct this part of our work we 

requested and received the pre-recovery Act period enforcement, compliance, and 

outreach activities workload and compared this data to the enforcement, compliance, 

and outreach activities workload for the period beginning February 17, 2009, through 

October 31, 2010. We then calculated the variance. 

A performance audit includes gaining an understanding of internal controls considered 

significant to the audit objectives, testing controls, and testing compliance with 

Recovery Act: Enforcement of Federal EEO Laws 

18 Report No. 18-11-007-04-410 
 
 	 

Prepared by Ollie Green & Company, CPA’s 

for the U.S. Department of Labor – Office of Inspector General 

significant laws, regulations, and other requirements. For this engagement, we 

obtained an understanding of OFCCP’s processes for evaluating the integrity and 

quality of its compliance evaluations, pre-award reviews, and outreach activities. The 

testing of internal controls over this process was not determined to be significant to our 

audit objectives. 

Criteria 

We used the following Criteria to accomplish our audit: 

1. The American Recovery and Reinvestment Act of 2009 (P.L. 111-5); 

2. Initial Implementing Guidance for the American Recovery and Reinvestment Act of 

2009 - (M-09-10) dated February 18, 2009; 

3. Updated Implementing Guidance for the American Recovery and Reinvestment Act 

of 2009- (M-09-15) dated April 3, 2009; 

4. Section 503 of the Rehabilitation Act of 1973; 

5. The Vietnam Era Veterans’ Readjustment Assistance Act of 1974; 

6. Executive Order 11246; 

7. The Federal Acquisition Regulations (FAR); 

8. Civil Rights Act of 1964 – Title VII – Equal Employment Opportunities; 

9. OFCCP Ord. No. ADM-09-1/SEL 

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19 Report No. 18-11-007-04-410 
 
 

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Recovery Act: Enforcement of Federal EEO Laws 

20 Report No. 18-11-007-04-410 
 

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 Appendix C 

Acronyms and Abbreviations 

ARRA American Recovery and Reinvestment Act of 2009 

DOL Department of Labor 

EEO Equal Employment Opportunity 

FAAPS Functional Affirmative Action Plans 

OFCCP Office of Federal Contract Compliance Programs 

OG&C Ollie Green & Company, CPA’s 

OIG Office of Inspector General 

Recovery Act American Recovery and Reinvestment Act of 2009 

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21 Report No. 18-11-007-04-410 
 
 

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Recovery Act: Enforcement of Federal EEO Laws 
 

22 Report No. 18-11-007-04-410 
 
 

U.S. Department of Labor Office of Federal Conlracl 

Compliance Programs 

MAR 2 5 2011 

200 Constitution Avenue, N.W. 

Washington, D.C. 20210 

MEMORANDUM FOR ELIOIT P. LEWIS 

FROM: 

SUBJECT: 

Assistant Inspector Genera1 for Audit 

Officc of Inspector General 

PATRICIA A. SHIU;'> / c0. Directo, (el 1/ I! td L" '{[I'-'~ Office of Federal Contract CMrlphance Programs 

Response to Draft Report No. 18-11-007-04-410 

Recovery Act: Enforcement of Federal Equal 

Employment Opportunity Laws 

The Office of Federal Contract Compliance Programs (OFCCP) is generally pleased with the 

results of the audit entitled "Recovery Act: Enforcement of Federal EquaJ Employment 

Opportunity Laws." OFCCP's program activities were essential to providing protection against 

discrimination for workers who were employed by. or sought employment with. federaJ 

contractors receiving funding from the American Recovery and Reinvestment Act of2009. 

While the Recovery Act was enacted to provide an economic stimulus, it was important for 

OFCCP to represent a consistent commitment on behalf of the Federal government to ensure 

equal opportunity and fairness in how the country's resources were deployed. The draft report 

verifies the performance of compliance evaluations, pre-award reviews and outreach as 

stipulated in OFCCP's Program Specific Recovery Act Plan. Your audit results also demonstrate 

that the agency exceeded its goals as described in the Plan and met all reasolmbh:: c::xpcctatiums uf 

perfonnance providing enforcement activities and compliance assistance for companies 

contracting with the Federal government via the Recovery Act. 

As stated, we are generally pleased and agree with your findings. There are, however, several 

specific comments we offer in order to improve the report's communication. First, given the 

auditor's positive findings we think it would be appropriate to describe more clearly that OFCCP 

performed well and implemented the Recovery Act program successfully in the "Results In 

Brief' section. Lastly, it is important for reviewers of this report to know that OFCCP Recovery 

Act program activities have ceased as of September 30, 2010. In some instances, the report may 

be interpreted as though our Recovery Act program is still in effect. 

We appreciate the professional manner in which the audit was conducted. 

Prepared by Ollie Green & Company, CPA’s 

for the U.S. Department of Labor – Office of Inspector General 

Appendix D 

Office of Federal Contract Compliance Program Response to Draft Report 

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24 Report No. 18-11-007-04-410 
 
 

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Appendix E 

Acknowledgements 

Key contributors to this report were Ollie Green, MBA, CPA (Managing Partner) Mr. 

Jerome Cooper (OIG Task Monitor), Susan Savitch, MS, CPA (Audit Manager), Andrea 

Morris, CPA (Audit Manager), Sharon Adams, CIA, CPA (Audit Manager), Nermina 

Mustafic (Staff Accountant), Elaine Styles (Staff Accountant). 

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25 Report No. 18-11-007-04-410 
 

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Recovery Act: Enforcement of Federal EEO Laws 
 

26 Report No. 18-11-007-04-410 
 
	 

TO REPORT FRAUD, WASTE, OR ABUSE, PLEASE CONTACT: 

Online: http://www.oig.dol.gov/hotlineform.htm 
 

Email: hotline@oig.dol.gov 
 

Telephone:& 1-800-347-3756 
 

202-693-6999 
 

Fax: & 202-693-7020 

Address: & Office of Inspector General 
 

U.S. Department of Labor 
 

200 Constitution Avenue, N.W. 
 

 & Room S-5506 

Washington, D.C. 20210