Federal Election Commission

Office of Inspector General 

Fiscal Year 2016

Work Plan

Lynne A. McFarland

Inspector General
TABLE OF CONTENTS

A Message from the Inspector General-------------------------------------------- 1 

OIG FY 2016 Work Plan--------------------------------------------------------------- 3

Audits/Inspections/Reviews-------------------------------------------------- 3

 Investigative Program--------------------------------------------------------- 5

Special Projects/Other Work Assignments------------------------------ 6

Additional Requirements/Professional Commitments--------------- 7

The Federal Election Commission-------------------------------------------------- 8

Office of Inspector General------------------------------------------------------------ 8

OIG Strategic Planning---------------------------------------------------------------- 9

Annual Planning and Methodology Strategies--------------------------------- 10

Attachment

FEC OIG Strategic Plan – Fiscal Years 2016 - 2020
1

 FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

Office of Inspector General

A Message from the Inspector General

I am pleased to present the Federal Election Commission (FEC) Office of Inspector 

General’s (OIG) fiscal year (FY) 2016 Annual Work Plan. This work plan includes a 

description of audit, inspection, investigative and special projects planned for FY 2016. 

The plan also sets forth the OIG’s formal strategy for identifying priority issues and 

managing its workload and resources for FY 2016. Successful execution of this plan will 

enable the OIG to provide the highest quality work products to our stakeholders and to 

assist the FEC in ensuring their resources are being expended in a responsible and 

reasonable manner and their programs are being run in an efficient and effective way. 

The OIG substantially completed the work planned for FY 2015 in the audit and 

investigative programs, as well as special projects; some of the assignments are in 

process and span FY 2015 and 2016. Among the audits and inspection completed by OIG 

in FY 2015 were the Audit of the FEC’s Fiscal Year 2014 Financial Statements, and the 

Inspection of FEC’s Travel and Purchase Card Programs. The OIG also began an audit 

of the FEC’s Telework/Flexiplace program. The audit and inspection program yielded a 

number of recommendations to improve FEC operations. The OIG devoted resources this 

past FY to audit follow-up and working with agency management toward the goal of 

closing outstanding Inspector General recommendations.

The OIG completed an investigative peer review of the National Credit Union 

Administration’s (NCUA) OIG. The OIG found the NCUA OIG’s investigative program 

to be in compliance with Council of the Inspectors General on Integrity and Efficiency 

(CIGIE) standards for investigative operations. 

The investigative program accomplished much of the work planned for 2015, which 

included responding to hotline complaints, OIG briefings to new employees, and 

oversight of the OIG’s hotline service. In FY 2015, seven hotline complaints and two 

investigations were opened, and five hotline complaints were closed, as was one 

investigation. 

The OIG staff was actively involved in several professional working groups during FY

2015, including the CIGIE Professional Development Committee and Leadership 

Development Subcommittee, the Council of Counsels to Inspectors General, the CIGIE 

Leadership Community of Practice, and the DATA Act working group. I continued as a 

member of the CIGIE Executive Committee and served as CIGIE Vice Chair through 

December, and I also became Vice Chair of the newly created CIGIE Budget Committee. 

Carla Smith was hired as the new Counsel to the Inspector General and Chief 

Investigator in February 2015. Carla previously served as Investigative Counsel with 
2

another OIG, and is a Certified Fraud Examiner and Certified Inspector General 

Investigator. 

Based on the results of the OIG’s planning process, as described in the Annual Planning 

and Methodology Strategies section, the OIG’s annual work plan is divided into four

primary categories:

(1) Audits/Inspections/Reviews;

(2) Investigative Program; 

(3) Special Projects; and

(4) Additional Requirements/Professional Commitments

The development and continual updating of the OIG’s work plan is a critical aspect of 

accomplishing the OIG’s objectives to promote economy and efficiency in FEC programs 

and to detect and prevent fraud, waste and abuse. Effective work planning ensures that 

all OIG resources, including audit and investigative resources, are used effectively and 

efficiently. I look forward to another successful year of providing the highest quality 

support and service to our stakeholders.

Lynne A. McFarland

Inspector General 

Federal Election Commission

October 1, 2015
3

OIG 2016 Work Plan

AUDITS/INSPECTIONS/REVIEWS

 

The term “audit” is used to describe work performed by auditors in examining financial

statements, as well as work performed in reviewing compliance with applicable laws and 

regulations, the economy and efficiency of operations, and the effectiveness in achieving 

program results. Audits are prepared in accordance with generally accepted government 

auditing standards and vary in scope and complexity. Inspections and reviews are 

conducted in accordance with quality standards issued by the federal Inspector General 

community. 

The following audit, inspection, and review assignments are planned for FY 

2016:

1. Audit of the Federal Election Commission’s 2015 and 2016 Financial 

Statements.

In accordance with the Accountability of Tax Dollars Act of 2002, the FEC is 

required to prepare annual financial statements in accordance with Office of 

Management and Budget (OMB) Circular No. A-136, Financial Reporting 

Requirements. The Chief Financial Officers Act of 1990, as amended, requires the 

FEC Inspector General, or an independent external auditor selected by the IG, to 

audit the agency financial statements.

We will oversee the FY 2015 and 2016 audits conducted by the OIG’s independent 

public accounting firm Leon Snead & Company. The OIG is responsible for 1) 

reviewing the auditor’s approach and planning of the audit; 2) evaluating the 

qualifications and independence of the auditors; 3) monitoring the work of the 

auditors; 4) examining audit documents and reports to ensure compliance with 

government auditing standards, and OMB Bulletin No. 07-04, Audit Requirements 

for Federal Financial Statements, as revised; and 5) other procedures the OIG 

deems necessary to oversee the contract and audit.

Planned periods of audit: May 2015 – November 2015;

May 2016 – November 2016.

2. Audit of Contract Management and Oversight by the Federal Election 

Commission’s Operational Units.

The OIG will conduct an audit of contract management and oversight by the FEC’s 

operational units. This audit will concentrate on the larger dollar amount 

contracts. The audit will focus on multiple phases of agency operational unit 

involvement, roles, and responsibilities in the contract process, with an emphasis 
4

on acquisition planning, contract implementation and management, and oversight

by agency components. 

Planned period of audit: January 2016 – May 2016.

3. Study to Determine the Causes of Low Morale at the FEC. 

Results from the Federal Employee Viewpoint Survey revealed a serious morale 

problem at the FEC, which could have an impact on the ability of the FEC to 

achieve its mission in an effective and efficient manner This study will focus on 

determining the root causes of the agency’s morale problems and be completed by 

a contractor in the first half of FY 2016.

Planned period of study: September 2015 – January 2016.

4. On-Going Audit Follow-up. 

An important responsibility of the OIG is to follow-up on previously issued audit 

reports with outstanding audit recommendations. Over the years, there have been

numerous outstanding recommendations relating to audits and inspections. The 

OIG has implemented an ongoing audit process to work with management to close 

recommendations in a timely manner. On-going audit follow-up during FY 2016

will consist of the following responsibilities: 1) review implemented audit 

recommendations to ensure the audit finding has been resolved; 2) review and 

comment on management’s corrective action plans that detail plans for resolving 

outstanding audit recommendations; 3) conduct regular meetings throughout the 

FY with management to discuss progress in implementing audit 

recommendations; and 4) provide semi-annual reports to the Commission detailing 

progress made by management and any ongoing OIG concerns.

Planned period of audit follow-up: On-going throughout FY 2016. 

5. Limited Scope Inspections.

The OIG is planning to complete several limited scope, or short-term, inspections 

of FEC programs during FY 2016. The goal of the short-term inspections will be to 

focus OIG resources on very specific areas and provide timely, up-to-date 

information to FEC management and the Commission on the efficiency and 

effectiveness of FEC programs. 

o An inspection related to the Office of Equal Employment Opportunity was 

started in a prior period and is expected to be completed in early FY 2016. 

o An inspection of FEC’s invitational travel program is planned for the first 

half of FY 2016. 

o Additional inspections may be performed, time permitting.
5

INVESTIGATIVE PROGRAM

The OIG’s investigative program is intended to add value to the agency’s programs and

operations by identifying and investigating allegations of fraud, waste, abuse, and 

misconduct leading to criminal, civil, and administrative penalties and recoveries. 

Investigations typically originate as hotline complaints and may result in formal 

investigations if warranted, based on OIG criteria. The OIG’s investigative program also 

provides for initiatives designed to monitor specific high-risk areas within FEC programs 

and operations in order to proactively identify vulnerabilities in order to prevent fraud, 

waste and abuse.

The following investigative assignments are planned for FY 2016:

1. Manage Hotline Complaints and Investigation Caseload.

The OIG will respond to hotline complaints, assess the information provided and 

decide on course of action. Investigations will be opened when warranted. Existing 

matters will continue to be investigated and brought to a resolution. When an 

investigation is closed, appropriate reports will be issued. The identities of 

complainants and witnesses will be protected pursuant to The Inspector General Act 

of 1978, as amended (IG Act).

2. Proactive Investigative Initiatives.

The OIG will initiate proactive reviews involving high-dollar and high-risk 

programs and operations of the agency. In addition, the OIG plans to conduct two 

fraud risk assessments.

3. Outreach.

The OIG has recently developed Skillport training for new and current employees. 

This training provides information on IG authorities, when and how to contact the 

OIG, and fraud indicators. The OIG will also be looking at further ways to provide 

additional information to FEC staff.

The OIG will continue participating in the new employee orientation program to 

meet with all new employees to discuss the purpose and mission of the OIG. 

Periodic communications to FEC staff on various topics, such as what to report to 

the OIG and what to expect when contacted by the OIG, are planned. Lastly, the

OIG will review and revise, as necessary, the OIG’s FECNet (intranet) site, public 

Web site, OIG brochure, fraud poster, and other outreach initiatives.
6

SPECIAL PROJECTS/OTHER WORK ASSISGNMENTS

A strategic goal of the OIG is to add value to the agency. One way the OIG can add value 

is to take a proactive approach to initiatives that are facing the FEC in the near future 

by performing special projects. Special projects will be conducted in accordance with the 

appropriate quality standards issued by the federal Inspector General community. 

The following special projects/other work assignments are planned for FY 2016:

1. Management Challenges.

The OIG reports annually on the important new and existing issues and 

challenges facing the agency, and on efforts by the agency to meet these 

challenges. 

2. Purchase and Travel Card Reporting.

The OIG conducts annual risk assessments of FEC purchase and travel cards 

pursuant to the Charge Card Abuse Prevention Act of 2012, Public Law 112-194, 

and OMB Memorandum M-13-21. The OIG is required to file a report with OMB 

by January 31st of each year reporting on any audit recommendations from the 

previous FY concerning audits of purchase or travel card programs. 

3. Improper Payments Reporting.

The OIG is required to annually review the FEC’s compliance with OMB 

Memorandum M-15-02, which provides statutory and executive order 

implementation guidance, for the Improper Payments Information Act of 2002, as 

amended, the Improper Payments Elimination and Recovery Act of 2010, the 

Improper Payments Information Improvement Act of 2012, and Executive Order 

13520. The OIG is required to assess agency compliance with M-15-02, and to 

report the results to Congress, the Comptroller General, and OMB.

4. Responses to Congressional Requests

The Chairman of the Senate Judiciary and Homeland Security and Governmental 

Affairs committees have requested semiannual reports on audits, evaluations and 

investigations conducted by the OIG, and on whether the OIG has been provided 

with access to all information needed to accomplish its duties and responsibilities. 

The OIG will respond to other Congressional requests as appropriate.

5. Peer Review of the National Endowment for the Arts (NEA) OIG.

Audit programs of Federal OIG’s are required to be peer reviewed once every three 

years. Under the program the CIGIE has developed to ensure compliance with 

this requirement, each OIG undertakes a peer review of another Federal OIG. 
7

During the second half of FY 2016, the audit program of the NEA OIG will be 

reviewed by the FEC OIG.

 

Additional special projects/work assignments may be undertaken during FY 2016 based 

on available OIG resources, benefit to the agency, and other relevant factors. Priorities 

may be adjusted to reflect emerging issues during the FY.

ADDITIONAL REQUIREMENTS/PROFESSIONAL COMMITTMENTS

In addition to the OIG’s audit and investigative responsibilities, the OIG has numerous 

other requirements, activities, and professional commitments during FY 2016. For 

example, as required by the IG Act, all legislation compiled by the Commission’s 

Congressional Affairs Office is reviewed by the Inspector General. The Inspector General 

and staff also participate in several Federal Inspectors General community working 

groups on topics related to law, audits, and investigations. All of these activities 

contribute to the success and mission of the OIG. Additional special projects will arise 

throughout the FY and the OIG will prioritize our workload to respond to the additional 

requirements.

The following are examples of the activities and commitments planned by the 

OIG for FY 2016:

1. Participate in and Attend Professional Working Group and Other 

Meetings.

The Inspector General or OIG staff will regularly attend the following CIGIE

professional working group meetings: monthly CIGIE meetings; Executive 

Council of CIGIE; CIGIE Professional Development Committee; Budget 

Committee; CIGIE Leadership Community of Practice; Council of Counsels to the 

Inspector General; Assistant Inspector General for Investigations; Federal Audit 

Executive Council; and Financial Statement Audit Network Group. 

In addition to CIGIE professional working group meetings, the Inspector General 

or staff will regularly attend FEC director level meetings, and management and 

FEC town-hall meetings, and the Institute of Internal Auditors (IIA) DC Chapter 

meetings throughout during the FY. 

2. Semiannual and Quarterly Reporting.

In accordance with the IG Act, the OIG will prepare and transmit to the Congress 

semiannual reports on the activities of the OIG. Semiannual reports summarize 

OIG activities during the immediately preceding six-month periods ending March 

31st and September 30th of each year. OIG semiannual reports are provided to the 

Commission. The OIG will also report on a quarterly basis to the Commission on 

the activities of the office.
8

3. Professional Development and Training.

The goal of the OIG’s training program is to provide cost effective training to 

increase professional knowledge and proficiency, and ensure staff meet continuing 

professional educational requirements. As a result, the OIG staff will attend 

professional training during the FY to maintain and improve their knowledge, 

skills and abilities.

The Federal Election Commission

In 1975, Congress created the FEC to administer and enforce the Federal Election 

Campaign Act of 1971, as amended. The duties of the FEC, an independent regulatory 

agency, are to disclose campaign finance information, enforce the provisions of the law,

and oversee the public funding of Presidential elections.

The Commission is made up of six members, who are appointed by the President and 

confirmed by the Senate. Each member serves a six-year term, and two seats are subject 

to appointment every two years. By law, no more than three Commissioners can be 

members of the same political party, and at least four votes are required for any official 

Commission action. The Chairmanship of the Commission rotates among the members 

each calendar year, with no member serving as Chair more than once during his or her 

term. The FEC has a full complement of six Commissioners serving on the Commission 

– Chair Ann Ravel; Vice Chair Matthew S. Petersen; and Commissioners Lee Goodman,

Caroline C. Hunter, Steven T. Walther, and Ellen L. Weintraub. 

Office of Inspector General 

The IG Act states that the Inspector General is responsible for: 1) conducting and 

supervising audits and investigations relating to the Federal Election Commission’s 

programs and operations; 2) detecting and preventing fraud, waste, mismanagement, 

and abuse of agency programs and operations while providing leadership and 

coordination; 3) recommending policies designed to promote economy, efficiency, and 

effectiveness of the agency; and 4) keeping the Commission and Congress fully and 

currently informed about problems and deficiencies in FEC agency programs and 

operations, and the need for corrective action. The OIG budget request for FY 2016 was 

$1,279,816, an amount necessary to cover salaries and related expenses for six current 

and one new staff members, as well as audit contracts and training. See the OIG’s 

organizational chart at Exhibit 1 on the following page.
9

Exhibit 1: FEC - OIG Organizational Chart

* One (1) additional position is allocated for FY’16.

OIG Strategic Planning

To enhance the effectiveness of the OIG and to ensure effective audit and investigative 

coverage of the Commission’s programs and operations, the OIG has a strategic plan that 

covers the period 2016 through 2020. Three major categories of OIG-wide goals and 

objectives are included in the strategic plan, which are as follows: 

• IMPACT: OIG products and services will be designed to positively impact FEC policies, 

programs, and operations by promoting integrity, efficiency, and effectiveness.

• QUALITY: OIG products and services provided to the FEC will be of the highest quality 

and meet or exceed applicable standards.

• EXCELLENCE: OIG will maintain a skilled and motivated work force and empower 

employees to maximize their professional and personal potential by fostering 

accountability, communication, teamwork, and constant growth and development. 

In addition, strategies and performance measures for each objective are included in the 

strategic plan. A detailed version of the OIG’s current strategic plan can be found as an 

attachment of this annual work plan.

Lynne A. McFarland

Inspector General

J. Cameron Thurber

Deputy Inspector 

General

Dorothy Maddox-Holland

Special Assistant to the 

Inspector General

Shellie Purnell-Brown

Senior Auditor

Mia Forgy

Senior Auditor

Carla Smith

Counsel to the Inspector 

General/Chief Investigator
10

Annual Planning and Methodology Strategies

The planning methodology adopted by the OIG is based on a formal risk assessment 

process. The purpose of the risk assessment process is to better align OIG resources to 

areas that will provide the most value to the FEC. A risk assessment is a process to 

identify, assess, respond to, and report on opportunities and threats that affect the 

achievement of objectives. The OIG also solicits feedback and ideas from stakeholders 

throughout the year. The annual work plan will, of course, require periodic updates to 

reflect changes, such as new priorities, as well as any changes in OIG resources. 

In the spring of 2015, the OIG conducted our annual planning process that involved OIG 

planning meetings to discuss the upcoming FY and OIG work assignments. In addition 

to risk base planning, the OIG’s work plan is also designed to yield work assignments 

that will identify opportunities for economy, efficiency and effectiveness in FEC 

programs and operations, and detect and prevent fraud, waste, abuse and 

mismanagement. The priority for conducting work assignments is based on: 1) 

mandatory legislative requirements; 2) emphasis by the President, Congress, and the 

Commission; 3) a program’s susceptibility to fraud, manipulation, or other irregularities; 

4) dollar magnitude or resources involved in the proposed area; 5) management needs 

identified through consultation with primary organization heads; 6) newness, changed 

conditions, or sensitivity of a program or operation; 7) the extent of outstanding issues 

resulting from prior audit coverage or review by the OIG or other oversight body; and 8) 

the adequacy of internal control systems in place for the program or other factors.