Semiannual Report to Congress

October 1, 2014 – March 31, 2015

May 2015

Federal Election Commission - Office of Inspector General

999 E Street, N.W. Suite 940, Washington, D.C. 20463



FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

Office of the Inspector General

A MESSAGE FROM THE INSPECTOR GENERAL

The Office of Inspector General (OIG) continued to see numerous changes over the past 

six months as the newly appointed Deputy Inspector General settled into his new position and transitioned away from the Counsel to the Inspector General/Chief Investigator 

position. In February, 2015 Carla Smith joined our staff as the new Counsel to the IG/

Chief Investigator. Ms. Smith has a wealth of experience not only in the legal arena, but 

in conducting investigations. She has already had a positive impact on the office and I 

look forward to working with her in the future. In addition, this is the first time the OIG 

has been fully staffed since May, 2014.

The OIG staff has continued to rise to the challenges and work load of the office, even 

when short staffed. The required Annual Financial Statement Audit was completed with 

the FEC receiving an unmodified opinion. We continued to keep a strong focus on follow up activity on recommendations contained in previously completed audits and 

inspections. We provided a semiannual report to the Commission on where management stands on completing outstanding recommendations and provided the Commission 

with OIG concerns about the pace of completing recommendations on certain audits/

inspections.

I am confident the OIG staff will continue to provide well thought out work that will 

provide the Commission and management with concrete recommendations to enable 

them to meet the mission of the Federal Election Commission in an efficient and effective manner.

Lynne A. McFarland

Inspector General

Federal Election Commission

April 30, 2015
v

April 1, 2013 - September 30, 2013

v

October 1, 2014 – March 31, 2015

Executive Summary 1

OIG Audit Activity 3

OIG Audit Follow-up Activity 5

OIG Inspections 6

OIG Hotline Information 7

OIG Investigative Information 9

Additional OIG Activity 10

Council of the Inspectors General on Integrity and Efficiency 11

OIG Contacts 12

List of Training, Meetings and Conferences Attended by OIG Staff 13

Reporting Requirements 15

Table I – Questioned Cost 16

Table II – Funds Put To Better Use 17

Table III – Summary Of Audit And Inspection Reports With 18

Corrective Actions Outstanding For More Than Six Months

Appendix A

The Federal Election Commission 19

Office of Inspector General 19

Table of Contents
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April 1, 2013 - September 30, 2013

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October 1, 2014 – March 31, 2015

Executive Summary

We reviewed six (6) audits and inspections that had 

a total of ninety-five (95) outstanding recommendations. The OIG was able to collectively close fourteen (14) recommendations from four (4) of the six 

(6) audits and inspections. A noteworthy accomplishment, the Office of Human Resources (OHR) has 

closed more than half of the outstanding recommendations within the first year of the follow-up process. 

However, the OIG continues to have concerns regarding the FEC privacy program and audit followup accountability. For additional information, see the 

section titled OIG Audit Follow-up Activity (starting 

on page 5).

The OIG completed and released the inspection report titled Inspection of the FEC’s Travel and 

Purchase Card Programs (OIG-14-05) during this reporting period. The primary objectives for this inspection were to 1) ensure card holders and approvers 

are complying with applicable charge card policies, 

procedures, and regulations, and 2) assess whether 

the FEC’s travel and purchase card programs are adequately designed to meet the requirements of the 

Office of Management and Budget (OMB) Circular 

A-123 – Appendix B (Improving the Management of 

Government Charge Card Programs, as revised) and 

the Government Charge Card Abuse Prevention Act 

of 2012. 

Based on the results of work performed, the OIG 

concludes that the FEC has adequately designed 

controls for both the travel card and purchase card 

program. In addition, the OIG did not find any indications of potential travel or purchase card abuse, and 

given the current environment, the risk of fraudulent 

transactions are low at this time. 

The final inspection report, released February 2015, 

included four (4) recommendations related to finalizing the written policies and control procedures for the 

travel program. For detailed information pertaining 

The Inspector General Act of 1978, as amended (the 

IG Act), states that the Inspector General is responsible for: conducting audits and investigations; recommending policies and procedures that promote 

economy, efficiency, and effectiveness of agency 

resources and programs; and endeavoring to prevent fraud, waste, abuse, and mismanagement. The 

IG Act also requires the Inspector General to keep 

the Commission and Congress fully and currently informed about problems and deficiencies in the 

Commission’s operations and the need for corrective 

action.

This semiannual report includes the major accomplishments of the Federal Election Commission 

(FEC) Office of Inspector General (OIG), as well as 

relevant information regarding additional OIG activities. The executive summary highlights the most significant activities of the OIG. Additional details pertaining to each activity (e.g., audits, hotline, and 

investigations) can be found in subsequent sections 

of this report. The diligent work, outstanding efforts, 

and many contributions of our entire IG staff make 

the accomplishments of the OIG possible.

Leon Snead & Company’s (LSC) final testing audit 

phase for the annual financial statement audit began at the start of this semiannual reporting period. 

The final audit report, which included an unmodified 

opinion, was released on November 18, 2014. For detailed information pertaining to the Audit of the FEC’s 

Fiscal Year 2014 Financial Statements (OIG-14-04), 

see the section titled OIG Audit Activity (starting on 

page 3). 

During this semiannual reporting period, the OIG released the report titled Office of Inspector General’s 

Review of Outstanding Recommendations as of 

February 2015 (OIG-15-02) to the Commission. The 

OIG semiannually provides a report to the Commission 

on the status of outstanding recommendations. 
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress

to the OIG inspection, see the section titled OIG 

Inspections (starting on page 6).

During this semiannual reporting period, five (5) new 

hotline complaints were opened and three (3) hotline complaints were closed, including one (1) that 

was merged with another hotline complaint. The OIG 

has four (4) open hotline complaints as of the close 

of this reporting period, including two (2) that were 

opened prior to the beginning of this reporting period. 

The closed hotline complaints included allegations of 

telework irregularities, false statements, and fraud. 

For this reporting period, the OIG received three (3) 

hotline inquiries. 

Five (5) investigations were open at the end of the 

reporting period, including four (4) that were opened 

at the beginning of and one (1) that was opened 

during this reporting period. No investigations were 

closed. For detailed information pertaining to hotline 

complaints and investigations, see the sections titled 

OIG Hotline Information (starting on page 7) or OIG 

Investigative Information (starting on page 9).
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April 1, 2013 - September 30, 2013

3

October 1, 2014 – March 31, 2015

OIG Audit Activity

Audit of the FEC's Fiscal Year 2014 Financial 

Statements

Assignment Number: OIG-14-04

Status: Released November 2014

http://www.fec.gov/fecig/documents/

FEC2014FinancialStatementAuditReport.pdf

Leon Snead & Company’s (LSC) final testing audit 

phase for the annual financial statement audit began at the start of this semiannual reporting period. 

During the financial audit status meeting on October 

8, 2014 the OIG received a request from the prior 

Commission Chair to provide written documentation 

explaining how the notice of findings and recommendations (NFR) related to information technology (IT) 

security controls impacted the FEC’s financial systems and data, which was completed by LSC. The 

OIG provided the document to the Chair on October 

24, 2014. In addition to the Chair’s request, the 

document included the related National Institute of 

Standards and Technology Controls (NIST) that each 

IT NFR issue relates to in an effort to assist management in decisions that were being made to improve 

the overall agency IT security program to potential 

align with NIST.

Also during final testing, the acting CFO placed a request with the OIG to have LSC complete an assessment of the IT security control recommendations that 

management implemented after LSC’s completion 

of the IT internal control testing. FEC management 

identified eight (8) open recommendations they considered closed and wanted to report as implemented 

to the Commission. The OIG met with the acting CFO 

and IT management to discuss the corrective actions 

implemented for the open items to determine if there 

would be enough information available for LSC to 

adequately review the corrective actions. Based on 

this meeting, the OIG determined that six (6) of the 

eight (8) corrective actions would be included in the 

additional assessment by LSC, which was scheduled 

for December 1 through December 5, 2014.

The final audit report, which included an unmodified opinion, was released on November 18, 2014. 

Management also received a management letter of 

issues that were identified during the audit but did not 

rise to the level of a reportable condition. 

On December 1, 2014 LSC began the assessment 

of the six (6) open IT Security Control recommendations. On December 10, 2014, upon conclusion of 

the assessment, LSC provided the Inspector General 

with written documentation detailing the results of 

their assessment which concluded five (5) of the six 

(6) recommendations were adequately implemented.

Audit of the Federal Election Commission's 

(FEC) Flexiplace/Telework Program

Assignment Number: OIG-15-03

Status: In Progress

The Audit of the FEC’s Flexiplace/Telework Program 

(OIG-15-03) commenced during this reporting period. The primary objectives of the audit are to 1) 

determine whether the Agency’s telework related 

programs are being administered by the agency in 

accordance with federal law, regulations, Office of 

Personnel Management (OPM) guidance, and FEC 

policies and procedures; and 2) assess whether the 

internal controls over the program are operating effectively and within the spirit of federal guidance.

The preliminary audit planning has been completed and the audit notification letter has been sent to 

management. The entrance conference between the 

OIG and the OHR, scheduled for April 8, 2015 provided management with an overview of the purpose 

of the audit and to discuss the preliminary scope of 

the audit. 
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To gain an understanding of FEC’s Flexiplace/

Telework program and requirements, the OIG reviewed FEC’s policies and researched all applicable 

laws, regulations, and guidance. In addition, to help 

assess the effectiveness of the FEC’s Flexiplace/

Telework programs, the OIG developed a survey and 

distributed to all agency employees on March 26, 

2015. The OIG will conduct fieldwork between April 

and June 2015

We expect to release the audit report during the next 

semiannual reporting period.
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April 1, 2013 - September 30, 2013

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October 1, 2014 – March 31, 2015

Office of Inspector’s General Review of 

Outstanding Recommendations as of February 

2015

Assignment Number: OIG-15-02

Status: Released March 2015

http://www.fec.gov/fecig/documents/ReviewofO

utstandingRecommendationsasofFebruary2015-

FinalReport.pdf

The OIG semiannually provides a report to the 

Commission on the status of outstanding recommendations. Since the last report released in July 

2014, we added the Inspection of FEC’s Compliance 

with FMFIA1 /OMB Circular A-123 report (released 

June 2014) to the audit follow-up process because 

the recommendations have been outstanding for 

more than six (6) months. For this reporting period, 

we reviewed the following six (6) audits and inspections that had a total of ninety-five (95) outstanding 

recommendations: 

•	 Audit of the Commission’s Property 

Management Controls;

•	 2010 Follow-up Audit of Privacy and Data 

Protection;

•	 2010 Follow-up Audit of Procurement and 

Contract Management;

•	 Inspection of the FEC’s Disaster Recovery 

Plan and Continuity of Operations Plans; 

•	 Audit of the FEC’s Office of Human Resources; 

and

•	 Inspection of FEC’s Compliance with FMFIA/

OMB A-123.

1

 Federal Managers’ Financial Integrity Act

The OIG was able to collectively close fourteen (14) 

recommendations from four (4) of the six (6) audits and inspections. A noteworthy accomplishment 

identified during the most recent audit follow-up review was that the OHR has closed more than half of 

the outstanding recommendations from the Audit of 

the Federal Election Commission’s Office of Human 

Resources within the first year of the follow-up process. However, the OIG continues to have concerns 

regarding the following areas:

FEC Privacy Program

•	 The agency has designated two Co-Chief 

Privacy Officers (the Deputy Chief Information 

Officer of Operations and Deputy General 

Counsel), instead of a singular responsible official, to oversee the agency’s privacy programs. 

The lack of one fully dedicated Privacy Officer 

has delayed progress in improving the agency’s 

overall privacy program and places the agency 

at risk of not following proper privacy protocol.

Audit Follow-up Accountability

•	 The FEC needs to improve the accountability 

of management officials necessary to ensure 

compliance with all aspects of Directive 50: 

Audit Follow-up. Without accountability to ensure implementation of corrective actions, the 

agency is exposed the potential for fraud waste 

and abuse of agency programs. 

OIG Audit Follow-up Activity
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Inspection of the FEC’s Travel and Purchase Card 

Programs

Assignment Number: OIG-14-05

Status: Released February 2015

http://www.fec.gov/fecig/documents/FinalReport-Ins

pectionoftheFECsTravelandPurchaseCardProgramsOIG-14-05-June2015.pdf

The OIG completed the inspection titled Inspection 

of the FEC’s Travel and Purchase Card Programs 

(OIG-14-05) during this reporting period. The primary objectives for this inspection were to 1) ensure 

card holders and approvers are complying with applicable charge card policies, procedures, and regulations, and 2) to assess whether the FEC’s travel and purchase card programs are adequately 

designed to meet the requirements of OMB Circular 

A-123 – Appendix B (Improving the Management of 

Government Charge Card Programs, as revised) and 

the Government Charge Card Abuse Prevention Act 

of 2012. 

The inspection fieldwork was completed during the 

prior reporting period. The scope of the inspection included a review and assessment of the FEC’s internal controls over charge card management programs 

to determine whether the controls are aligned with 

regulations and guidance over charge cards. We also 

reviewed travel and purchase card activity reports 

from January 2013 to April 2014 to look for any unusual transactions and for potential misuse, abuse, 

or fraud by cardholders. From the activity reports, we 

took a sample of thirty (30) travel cards and thirtyfive (35) purchase card transactions and reviewed 

the supporting documentation to ensure the transactions were properly approved and paid in compliance 

with applicable regulations and internal policies and 

procedures. 

Based on the results of work performed, the OIG 

concludes that the FEC has adequately designed 

controls for both the travel card and purchase card 

programs. Also, the controls are operating effectively to ensure only authorized travel-related and business expenses that are in compliance with applicable 

regulations are paid by the Agency. In addition, the 

OIG did not find any indications of potential travel or 

purchase card abuse, and given the current environment, the risk of fraudulent transactions are low at 

this time. 

The final inspection report, released February 2015, 

included four (4) recommendations related to finalizing the written policies and control procedures for the 

travel program. 

OIG Inspections
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April 1, 2013 - September 30, 2013

7

October 1, 2014 – March 31, 2015

The OIG hotline exists to enable FEC employees, 

FEC contractors, and the public to have direct and 

confidential contact with the OIG. All allegations or 

referrals received by the OIG of fraud, waste, abuse, 

mismanagement, and misconduct involving FEC employees, contractors, programs, operations, property, or funds are termed “hotline complaints” per OIG 

policy. Once a hotline complaint has been received, a 

preliminary inquiry is conducted to determine whether the hotline complaint will be closed with no further action taken, referred to management or another 

agency, or converted into an investigation. 

The OIG considers many factors when evaluating 

whether to open an investigation based on a hotline 

complaint. OIG policy requires that hotline complaints 

be evaluated on certain criteria, including the merits of an allegation, the availability of evidence, and 

the existing priorities, commitments, and resources 

of the OIG. Under this policy, hotline complaints are 

classified as either high or low priority complaints. 

High priority complaints are investigated and low priority complaints are either closed with no action or 

referred to the appropriate official for possible further 

review. Hotline evaluation decisions are made by the 

Chief Investigator, with concurrence from the Deputy 

IG.

During this semiannual reporting period, five (5) new 

hotline complaints were opened and three (3) hotline complaints were closed. The OIG has four (4) 

open hotline complaints as of the close of this reporting period, including two (2) that were opened prior 

to the beginning of this reporting period. The closed 

hotline complaints included allegations of telework irregularities, false statements, and fraud. Two (2) hotline complaints were closed after preliminary evaluations revealed that in one case the allegation was 

without merit and in another the issue had already 

been brought forth in a more appropriate legal forum; 

the third closed complaint was merged with another 

complaint containing similar allegations.

The OIG frequently receives reports and allegations 

which are misdirected complaints that either should 

have been routed to the FEC’s Office of Complaints 

and Legal Administration within the Office of General 

Counsel (OGC), are outside the jurisdiction of the 

OIG or the FEC, or are facially unsubstantiated, meritless or invalid. For example, Section 437g of the 

Federal Election Campaign Act of 1971, as amended (FECA), sets forth strict requirements for reporting 

alleged violations of FECA, and FEC regulations direct that such complaints be filed directly by the complainant and processed through OGC. Still, the OIG 

regularly receives complaints of alleged FECA violations, many of which are not legally compliant. 

Form responses containing information about properly filing a complaint with OGC are sent to complainants alleging FECA violations, as the OIG does not 

route FECA complaints to OGC due to legal requirements. In other cases of misdirected complaints, a response may be sent to the individual referring him or 

her to the proper office or other agency. In some limited instances where a misdirected communication 

does not concern a FECA violation but falls under the 

purview of another FEC component or government 

agency, such as a candidate with a question about 

filing a report with the FEC, the inquiry may be redirected and sent to the appropriate office or agency 

directly from the OIG. Reviewing and, where appropriate, responding to these reports and allegations 

when aggregated can entail a significant amount of 

staff time and effort, despite the fact that they are not 

valid hotline complaints.

In order to capture and document these hotline contacts, the OIG created a category for “hotline inquiries” that do not meet the criteria for hotline 

complaints. Hotline contacts that are misdirected 

OIG Hotline Information
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress

complaints, facially unsubstantiated, meritless or invalid, and thus do not meet the criteria for classification as a hotline complaint, are categorized as hotline 

inquires. For this reporting period, the OIG received 

three (3) hotline inquiries. 
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April 1, 2013 - September 30, 2013

9

October 1, 2014 – March 31, 2015

OIG Investigative Information

OIG investigations seek out facts related to allegations of violations of statute, regulation, rule, policy or 

procedure. OIG investigations may address administrative, civil, or criminal violations of laws and regulations. The subject of an OIG investigation can be any 

agency employee, an FEC contractor or consultant, 

or a person or entity involved in alleged wrongdoing 

affecting FEC programs and operations. 

As discussed in OIG Hotline Information, all hotline 

complaints are evaluated to determine if they warrant an investigation. If an investigation is opened, 

the hotline complaint is closed and merged into the 

investigative file. OIG investigations involve a detailed 

examination or inquiry into issues brought to our attention by various sources, and may include interviews of relevant witnesses and subjects, document 

reviews, and computer forensic examinations. At the 

conclusion of an OIG investigation, the OIG prepares 

a report that sets forth the allegations and an objective description of the facts developed during the 

investigation. 

Five (5) investigations were open at the end of the reporting period, including four (4) that were opened at 

the beginning of and one (1) that was opened during 

this reporting period. No investigations were closed.
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress

Additional OIG Activity

Besides conducting audits, inspections, and investigations, the OIG performs and is involved in an array of additional projects and activities. As required 

by the Inspector General Act of 1978, as amended, all legislation related to the programs and operations of the FEC compiled by the Commission’s 

Congressional Affairs Office is reviewed by the 

Inspector General (IG). In addition, the IG routinely 

reads all Commission agenda items for Commission 

meetings. 

The IG also reviews and provides comments, when 

appropriate, on legislation provided by the Council 

of Inspectors General on Integrity and Efficiency 

(CIGIE) Legislative Committee. Listed below are examples of the OIG’s additional activities during this 

reporting period: 

•	 The OIG responded to two (2) congressional 

requests. One was from the House Committee 

on Oversight and Government Reform regarding open and implemented IG recommendations, and whether we are receiving 

complete, unfiltered, and timely access to 

agency records. The second request, from the 

Senate Committee on Homeland Security and 

Government Affairs and the Senate Committee 

on the Judiciary, asked our office to provide 

information regarding audits, evaluations, and 

investigations conducted by the FEC OIG. 

•	 The IG conducted two (2) “Lunch with the IG” 

sessions at American University for CIGIE’s 

New Leaders program. The IG also spoke 

to George Washington University’s Institute 

of Brazilian Issues Spring Minerva Students 

on the role of IGs and CIGIE in the Federal 

government. 
11

April 1, 2013 - September 30, 2013

11

October 1, 2014 – March 31, 2015

The IG continues to serve as Chair of the Inspector 

General Recommendation Panel. This panel is 

charged with making recommendations of qualified 

candidates to the White House and heads of various federal agencies to be considered for vacant IG 

positions. 

As this semiannual reporting period commenced, the 

Inspector General served as Vice Chair of the CIGIE. 

In this capacity, the IG supported the Chair, reviewed 

various documents, attended weekly meetings with 

the Chair and CIGIE executive staff, and provided input on various issues pertaining to the CIGIE. The 

IG also participated in small group meetings with the 

CIGIE Chair to ascertain members’ thoughts on various CIGIE issues. The IG’s term as Vice Chair of the 

CIGIE ended December 31, 2014. 

The IG is still a member of the Executive Council 

which is composed of the CIGIE Chair, Vice Chair, 

the immediate past Chair and Vice Chair, an at-large 

member, and all Committee Chairs. 

The Executive Council provides guidance on CIGIE 

initiated projects, the operating plans for each fiscal 

year, and the general business of CIGIE and meets 

monthly to discuss issues that will affect CIGIE and 

its members. 

Council of the Inspectors General on 

Integrity and Efficiency
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Office of Inspector General Semiannual Report to Congress

This section documents the non-hotline communications received by the OIG from the public and 

other government agencies. OIG contacts run the 

gamut from citizens expressing their views or trying to reach the right FEC component to graduate 

students doing research. Contacts may be made 

through telephone calls, emails, faxes, U.S. mail, 

and personal visits to the OIG. The table below indicates the total amount of contacts received by 

the OIG for the past six months – October 1, 2014 

through March 31, 2015. Those forwarded for action were referred to another FEC component or 

appropriate resource.

OIG Contacts

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

3,624 29 3,587 8
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April 1, 2013 - September 30, 2013

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October 1, 2014 – March 31, 2015

The chart listed below depicts training, meetings, programs, seminars, and/or conferences attended by the 

Inspector General and/or the OIG staff for the period October 1, 2014 – March 31, 2015:

MEETINGS:

List of Training, Meetings

and Conferences

Host / Sponsor Topic / Subject

Assistant Inspector General for Investigations Quarterly Meetings

Council of Counsels to the Inspectors General Monthly Meetings

Small OIG Working Group Meeting

Council of Inspectors General on 

Integrity and Efficiency (CIGIE) 

Weekly Chair/Vice Chair Meetings

Monthly Meetings

Monthly Executive Council Meetings

Professional Development Committee

 Meetings 

Professional Development Committee’s

 Leadership Development Subcommittee

 Meetings

Public Media Meeting

Leadership Community of Practice Meeting

Department of Transportation Federal User Group TeamMate Meeting

Federal Audit Executive Council Bi-monthly Meetings

Data Act Workshop Group

Federal Election Commission

Bi-monthy Directors' Meetings

Finance Committee Meetings

Managers' Meeting

DC District Court's CFO Meeting

Introduction to Enterprise Content

 Management

New Employee Orientation

All-Hands Meeting

Federal Election Commission/

Office of Inspector General

Bi-weekly Staff Meetings

Weekly Meetings w/Staff Assistant, Deputy IG

 and Counsel to the IG/Chief Investigator

Institute of Internal Auditors Monthly Officers Meetings
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Host / Sponsor Topic / Subject

Association of Certified Fraud Examiners Emerging Crimes of the Digital World

CIGIE Training Institute Coaching Effective Writing

How to Streamline Audit Reports

Federal Election Commission

Annual Ethics Training

Annual Privacy Training

IT Security Awareness Training

How to Remain Calm and Collected in Challenging

 Conversations

Federal User's Group TeamMate Conference

General Services Administration Financial Services Transition to NFC Webinar

Institute of Internal Auditors

2014 Mid-Atlantic District Conference

Hollate Manufacturing Case Study

New Jersey Society of

Certified Public Accountants New Jersey Law and Ethics Webinar

The Watchful Eye Mitigating Risk in the Cloud

TRAINING/CONFERENCES:
15

April 1, 2013 - September 30, 2013

15

October 1, 2014 – March 31, 2015

Reporting Requirements

Reporting requirements required by the Inspector General Act of 1978, as amended by the Inspector 

General Act Amendments of 1988 are listed below:

IG ACT DESCRIPTION PAGE

Section 4(a)(2) Review of Legislation 10

Section 5(a)(1) Significant Problems, Abuses, and Deficiencies None

Section 5(a)(2) Recommendations with Respect to Significant Problems, Abuses,

and Deficiencies None

Section 5(a)(3) Recommendations Included in Previous Reports on Which 

Corrective Action Has Not Been Completed (Table III) 18

Section 5(a)(4) Matters Referred to Prosecuting Authorities None

Section 5(a)(5) Summary of Instances Where Information was Refused None

Section 5(a)(7) Summary of Significant Reports 3

Section 5(a)(8) Questioned and Unsupported Costs (Table I) 16

Section 5(a)(9) Recommendations that Funds be put to Better Use (Table II) 17

Section 5(a)(10) Summary of Audit Reports issued before the start of the Reporting 

Period for which no Management Decision has been made N/A

Section 5(a)(11) Significant revised Management Decisions N/A

Section 5(a)(12) Management Decisions with which the Inspector General is 

in Disagreement None
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NUMBER QUESTIONED 

COSTS

UNSUPPORTED 

COSTS

A. For which no management decision has been made 

by commencement of the reporting period

0 0 0

B. Which were issued during the reporting period 0 0 0

Sub-Totals (A&B) 0 0 0

C. For which a management decision was made during 

the reporting period

0 0 0

(i) Dollar value of disallowed costs 0 0 0

(ii) Dollar value of costs not disallowed 0 0 0

D. For which no management decision has been made 

by the end of the reporting period

0 0 0

E. Reports for which no management decision was 

made within six months of issuance

0 0 0

Table I

Inspector General issued reports with questioned costs (dollar value in thousands)
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April 1, 2013 - September 30, 2013

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October 1, 2014 – March 31, 2015

Number Dollar Value

(In Thousands)

A. For which no management decision has been made by the 

commencement of the reporting period

0 0

B. Which were issued during the reporting period 0 0

C. For which a management decision was made during the reporting period

0 0

(i) dollar value of recommendations were agreed to by 

management

0 0

based on proposed management action 0 0

based on proposed legislative action 0 0

(ii) dollar value of recommendations that were not agreed to 

by management

0 0

D. For which no management decision has been made by the 

end of the reporting period

0 0

E. Reports for which no management decision was made within 

six months of issuance

0 0

Table II

Inspector general issued reports with recommendations that funds be put to better use
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Recommendations

Report Title Report 

Number

Issue 

Date

Number Closed Open

Audit of the Commission’s Property 

Management Controls OIG-09-02 03/10 36 35 1

2010 Follow-up Audit of Procurement and 

Contract Management

OIG-10-02 06/11 29 26 3

2010 Follow-up Audit of Privacy and 

Data Protection OIG-10-03 03/11 45 17 28

Inspection of the Federal Election 

Commission’s Disaster Recovery Plan and 

Continuity of Operations Plans

OIG-12-06 01/13 30 0 30

Audit of the Federal Election Commission’s 

Office of Human Resources

OIG-12-05 07/13 26 15 11

Inspection of FEC’s Compliance with FMFIA/ 

OMB Circular A-123

OIG-14.01 06/14 8 0 8

Cumulative Total Of Outstanding Recommendations 81

Table III

Summary of audit and inspection reports with corrective actions outstanding for more than six 

months
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April 1, 2013 - September 30, 2013

19

October 1, 2014 – March 31, 2015

Appendix a

The Federal Election 

Commission

In 1975, Congress created the Federal Election 

Commission to administer and enforce the Federal 

Election Campaign Act (FECA). 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 consists 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 year, with no member serving as 

Chairman more than once during his or her term. 

Currently the FEC has a full complement of 

Commissioners – Ann M. Ravel, Chair; Matthew 

S. Petersen, Vice Chair; Commissioners Lee E. 

Goodman; Carolyn C. Hunter; Steven T. Walther; and 

Ellen L. Weintraub. 

Office of Inspector General

The Inspector General Act of 1978, as amended, 

states that the Inspector General is responsible for: 

1) conducting and supervising audits and investigations relating to the FEC’s programs and operations; 

2) detecting and preventing fraud, waste, and abuse 

of agency programs and operations while providing 

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

effectiveness of the establishment; 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.

During this reporting period, the OIG welcomed 

Carla Smith to the IG staff in February 2015 as 

Counsel to the IG and Chief Investigator. Ms. Smith 

is an attorney with over ten (10) years of legal experience in the areas of regulatory law and investigations. Prior to coming to the FEC, Ms. Smith 

served as Senior Investigative Counsel in the Legal 

Services Corporation’s Office of Inspector General. 

The OIG’s former Counsel to the IG and Chief 

Investigator, James Cameron Thurber, was promoted to Deputy IG during this reporting period.

Inspector General, Lynne A. McFarland (left); Deputy IG, 

J. Cameron Thurber (center); and Counsel to the IG/Chief 

Investigator, Carla Smith (right).
or toll free at 1-800-424-9530 (press 0; then dial 1015) 

Fax us at 202-501-8134 or e-mail us at oig@fec.gov 

Visit or write to us at 999 E Street, N.W., Suite 940, Washington DC 20463 

Federal Election Commission 

Office of Inspector General 

Individuals including FEC and FEC contractor employees are encouraged to alert the OIG to 

fraud, waste, abuse, and mismanagement of agency programs and operations. Individuals 

who contact the OIG can remain anonymous. However, persons who report allegations are encouraged 

to provide their contact information in the event additional questions arise as the OIG evaluates the 

allegations. Allegations with limited details or merit may be held in abeyance until further specific details 

are reported or obtained. Pursuant to the Inspector General Act of 1978, as amended, the Inspector 

General will not disclose the identity of an individual who provides information without the consent of that 

individual, unless the Inspector General determines that such disclosure is unavoidable during the course 

of an investigation. To learn more about the OIG, visit our Website at: http://www.fec.gov/fecig/fecig.shtml 

Together we can make a difference. 

Fraud Hotline 

202-694-1015