Federal Election Commission 

Office of Inspector General 

Fiscal Year 2013 

Work Plan
 

Lynne A. McFarland 

Inspector General 
 

 

 

 

 TABLE OF CONTENTS 

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

The Federal Election Commission--------------------------------------------------- 3 

Office of Inspector General------------------------------------------------------------ 3 

OIG Strategic Planning----------------------------------------------------------------- 4 

Annual Planning and Methodology Strategies---------------------------------- 5 

OIG 2013 Work Plan-------------------------------------------------------------------- 6 

 Audits/Inspections/Reviews-------------------------------------------------- 6 

 Investigative Program--------------------------------------------------------- 9 

 Special Projects------------------------------------------------------------------ 10 

Attachment 

FEC / OIG Strategic Plan – Fiscal Years 2010 - 2015 
 

 

 

 

 

FEDERAL ELECTION COMMISSION 

WASHINGTON, D.C. 20463 

Office of Inspector General 

A Message from the Inspector General 

I am pleased to present to the Commission the Office of Inspector General’s (OIG) 

fiscal year (FY) 2013 Annual Work Plan. This work plan includes a description of audit, 

inspections, investigative and special projects planned for FY 2013. The plan also sets

forth the OIG’s formal strategy for identifying priority issues and managing its workload 

and resources for FY 2013. 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 

meeting its strategic mission, goals and objectives. 

The OIG substantially completed the work planned for FY 2012 in the audit and 

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

process spanning fiscal years 2012 and 2013. Among the audits completed in FY 2012

were the Audit of the FEC’s Fiscal Year 2011 Financial Statements, and the Quality 

Assessment Audit of the FEC’s Audit Division. The OIG also devoted resources this past 

FY to audit follow-up with the goal of closing outstanding audit recommendations. I am 

pleased to report the FEC has been able to implement some of the outstanding OIG 

recommendations, but a considerable amount of work remains to ensure weaknesses 

cited by the OIG are addressed. 

In addition to the accomplishments in the audit program, the investigative 

program accomplished much of the work planned for 2012, to include responding to 

hotline complaints, OIG briefings to new employees, oversight of the OIG’s hotline 

service, among other projects. My office also completed our first voluntary investigative 

peer review of another federal OIG. In addition to the investigative program, the OIG 

staff was actively involved in several professional working groups during the FY, to 

include the Council of the Inspectors General on Integrity and Efficiency Professional 

Development Committee, the Inspector General (IG) Candidate Recommendations Panel 

Committee, the IG Council of Counsels, among others. At the start of FY 2013, the OIG 

is fully staffed with six professional staff members, and therefore, I anticipate the OIG 

will successfully complete the FY 2013 work plan that follows. 

The U.S. Federal Election Commission’s (FEC) mission statement is “to prevent 

corruption in the Federal campaign process by administering, enforcing and formulating 

policy with respect to Federal campaign finance statutes.”1 The OIG is committed to 

ensuring the integrity of FEC programs and operations. 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 audit and investigative resources 

1

 Federal Election Commission, Fiscal Year 2013 Congressional Budget Justification (Washington, DC, February 13, 

2012), 3. 

1 
are used effectively and efficiently. I look forward to a successful year of providing the 

highest quality of audit and investigative support and service to our stakeholders. 

Lynne A. McFarland 

Inspector General 

Federal Election Commission 

October 3, 2012 

2 
The Federal Election Commission 

In 1975, Congress created the Federal Election Commission (FEC) 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 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 year, with no member serving as Chairman more than once during his or 

her term. Currently the FEC has a full complement of Commissioners – Chair Caroline 

C. Hunter; Vice-Chair Ellen L. Weintraub; Cynthia L. Bauerly; Matthew S. Petersen; 

Steven T. Walther; and Donald F. McGahn, II. 

Office of Inspector General 

The Inspector General Act of 1978 (P.L. 100-504), as amended, 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, 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. The OIG 

budget request for FY 2013 was $ 1,144,237, an amount necessary to cover salaries and 

related expenses for six staff members, to include audit contracts and training. Exhibit 1 

on the following page contains the OIG’s organizational chart. 

3 
Exhibit 1: FEC - OIG Organizational Chart 

Lynne A. McFarland 

Inspector General 

Jon Hatfield 

Deputy Inspector 

General 

Dorothy Maddox-Holland 

Special Assistant to the 

Inspector General 

Shellie Purnell-Brown 

Senior Auditor 

Mia Forgy 

Senior Auditor 

J. Cameron Thurber 

Counsel to the Inspector

General/Chief Investigator 

OIG Strategic Planning 

Strategic Plan 

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 2010 through 2015. Three major categories of OIGwide goals and objectives are included in the strategic plan, which are as follows: 

•	 OIG Products: To provide products and services that promote positive change in 

FEC policies, programs, and operations. 

•	 OIG Processes: To develop and implement processes, policies, and procedures to 

ensure the most effective and appropriate use of OIG resources in support of our 

people and products. 

•	 OIG Staff: To maintain a skilled and motivated work force in an environment 

that fosters accountability, communications, teamwork, and personal and 

professional growth. 

4 
In addition, strategies and performance measures for each objective are included 

in the strategic plan. For example, an OIG performance measure for audits includes 

using feedback from stakeholder surveys to continually improve the OIG’s audit process. 

At the conclusion of each audit/inspection/review, the OIG distributes a stakeholder 

survey to the program officials to solicit their feedback on the usefulness of the completed 

OIG assignment and their overall satisfaction with the process. 

The OIG strategic plan will continue to evolve and will be reviewed and updated 

as necessary to ensure maximum effectiveness in meeting the changing needs of the 

FEC, consistent with the OIG’s statutory responsibilities. A detailed illustrative version 

of the OIG’s strategic plan can be found as an attachment of this annual work plan. 

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 summer of 2012, the OIG conducted our fifth annual planning process that 

involved a series of OIG planning meetings to discuss the upcoming fiscal year and OIG 

work assignments. In addition to planning based on risk, the OIG planning process 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 an organization; (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. 

5 
 

 

Based on the results of the OIG’s planning process, the OIG’s annual work plan is 

divided into three primary categories: 

(1) Audits/Inspections/Reviews; 

(2) Investigative Program; and 

(3) Special Projects. 

OIG 2013 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. These 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. 

For fiscal year 2013, the following assignments are planned: 

1. Audit of the Federal Election Commission’s 2012 and 2013 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 audit 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 period of audit: May 2012 – November 2012; 

May 2013 – November 2013. 

6 
 

 

2. Audit of the Federal Election Commission’s Human Resources Office. 

The OIG will conduct a performance audit of the FEC’s Human Resources (HR) 

Office during the first part of fiscal year (FY) 2013. The HR Office is a critical 

component of the agency and is responsible for several important functions, to 

include recruitment and retention of qualified staff; employee-employer relations; 

administration of employee benefits; maintenance and processing of personnel 

records; training; among other responsibilities. The OIG audit will focus on two 

main areas, customer service and the efficient and effective use of automated 

processes by the agency for human resource functions. As part of the customer 

service assessment, the OIG will conduct an agency-wide survey of FEC staff to seek 

feedback on their satisfaction level of service provided by the FEC HR Office. 

Planned period of audit: July – December 2012. 

3. Audit of the Federal Election Commission’s Budget and Financial 

Management Process 

The OIG will conduct a performance audit of the FEC’s budget and financial 

management process. The audit will have three primary objectives: (1) to 

determine whether the Office of the Chief Financial Officer provides FEC 

management with timely, accurate and real-time financial information to enable 

managers to effectively monitor and manage FEC programs; (2) to assess the 

benefits and costs of the FEC’s financial line of business with the General Services 

Administration; and (3) assess year-end spending. 

Planned period of audit: January – April 2013. 

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. At the beginning of FY 2013, 

there were 143 outstanding audit recommendations representing five audits and 

one inspection. On-going audit follow-up during FY 2013 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; and (3) conduct regular meetings throughout the FY with 

management to discuss progress to implement audit recommendations. 

Planned period of audit followup: On-going throughout FY 2013. 

7 
 

5. Audit Peer Review. 

The OIG will complete an audit peer review of another federal OIG during the 

fiscal year as part of the Council of Inspectors General on Integrity and 

Efficiency’s audit peer review program. Government auditing standards require 

audit organizations to have an external review of their quality control system at 

least every three years. 

Planned period of audit peer review: Fiscal year 2013. 

6. Limited Scope Inspections. 

The OIG is planning to conduct two to four limited scope, or short-term, 

inspections of FEC programs during FY 2013. The goal of the short-term 

inspections will be to focus OIG resources on high-risk areas and provide rapid, 

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 late FY 2012 and is expected to be completed by December 2012. 

o	 A second inspection is expected to begin in October 2012 on the 

implementation of the agency’s disaster recovery plan and continuity of 

operations plans. The inspection is expected to be completed in December 

2012. 

o	 An inspection on the FEC’s compliance with the Federal Managers’ 

Financial Integrity Act (FMFIA) is planned to begin in the early part of 

calendar year 2013 and is expected to be completed by April 2013. 

o	 Additional inspections on the FEC’s civil penalties program, FEC’s 

information technology planning process, leasehold improvements and the 

agency printing program may be performed, time permitting. 

7. Additional Work Assignments. 

Additional work assignments may be undertaken during FY 2013 based on 

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

Priorities may be adjusted to reflect emerging issues during the FY.
 

8 
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 the OIG believes an investigation is warranted. 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. 

For fiscal year 2013, the following investigative assignments are planned: 

1. Manage Hotline Complaints and Investigation Caseload. 

The OIG will respond to hotline complaints during the FY and report in a timely 

manner to the appropriate officials on the resolution of hotline complaints and 

investigations. 

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 has identified several 

agency data systems, such as financial related systems, and will continue to 

pursue direct read-access for OIG personnel as part of the OIG’s proactive 

initiatives to prevent fraud, waste, abuse and misconduct. 

3. Investigative Peer Review. 

The FEC OIG participates in the Council of Inspectors General on Integrity and 

Efficiency voluntary peer review program for smaller OIGs, and the FEC OIG is 

expected to be peer reviewed during FY 2013. The objective of the peer review is 

to determine whether internal control systems are in place and operating 

effectively to provide reasonable assurance that professional investigative 

standards are being followed. Specifically, the external peer review team will 

analyze FEC OIG existing policies and procedures, conduct interviews with 

selected OIG management officials and the investigator, and sample closed 

investigative files and other administrative records, as warranted. 

Planned period of investigative peer review: Fiscal year 2013. 

9 
 

 

 

4. Outreach. 

In FY 2011, the OIG conducted a series of OIG briefings with FEC division 

management and staff. The briefings were intended to educate FEC staff about 

the mission and authority of the OIG, and how to report fraud, waste, abuse or 

mismanagement to the OIG. In FY 2012, the OIG worked with the Office of the 

Chief Financial Officer to identify the contractor personnel for the agency. The 

OIG plans to provide fraud briefings to the contractor personnel in FY 2013. 

Discussion and education on fraud will help contractors to identify and report 

suspected fraud and help reduce the number of fraud cases. The briefings will also 

discuss the OIG’s hotline service and how contract personnel can report fraud, 

waste and abuse to the OIG. 

In addition, the OIG will continue the new employee orientation program to meet 

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

SPECIAL PROJECTS 

In addition to the OIG’s audit and investigative responsibilities, the OIG will be 

responsible for numerous additional projects and activities during FY 2013. For 

example, as required by the Inspector General Act of 1978, as amended, 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. 

For fiscal year 2013, the following are examples of the special projects and activities 

planned by the OIG: 

1. Participate and Attend Professional Working Group and Other Meetings. 

The Inspector General or OIG staff will regularly attend the following Council of 

the Inspectors General on Integrity and Efficiency (CIGIE) professional working 

group meetings: monthly CIGIE meetings; Executive Council of CIGIE; CIGIE 

Professional Development Committee; IG Candidate Recommendations Panel 

Committee; IG Council of Counsels; Assistant Inspector General for 

Investigations; Federal Audit Executive Council; and Financial Statement Audit 

Network Group. 

10 
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 during the FY. 

2. Semiannual and Quarterly Reporting. 

In accordance with the Inspector General Act of 1978, as amended, 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 also provided to the Commission. The OIG will also 

report on a quarterly basis to the Commission on the activities of the office. 

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 fiscal year to maintain and improve their 

knowledge, skills and abilities. 

4. Update Audit and Investigative Manuals. 

The OIG will update the office’s audit and investigative manuals in FY 2013. The 

updated audit manual will incorporate recent changes to the Government Auditing 

Standards, and the investigative manual update will reflect changes and additions 

to the OIG’s investigative program. 

11 
12

 

 

 

 

 

 

FEC / OIG Strategic Plan - Fiscal Years 2010 - 2015 

OIG Products: To provide products 

and services that promote positive 

change in FEC policies, programs, and 

operations. 

OIG Process: To develop and implement 

processes, policies, and procedures to ensure 

the most effective and appropriate use of OIG 

resources in support of our people and 

products. 

OIG Staff: To maintain a skilled and motivated 

work force in an environment that fosters 

accountability, communications, teamwork, and 

personal and professional growth. 

Objective A: Deliver timely, high-quality 

products and services that promote 

positive change. 

Strategy: 

- establish common OIG standards for communicating 

results; 

- conduct quality assurance programs; 

- solicit appropriate internal and external review and 

comment; 

- comply with applicable statutory guidelines and 

standards; 

- set realistic and appropriate milestones. 

Objective B: Address priority issues 

and concerns of the Commission, 

Management, and Congress. 

Strategy: Perform work that supports; 

- Federal Election Commission and Congressional 

priorities; 

- Strategic Management Initiative efforts; 

Focus OIG attention in the following areas of 

emphasis: 

- managing change; 

- resource allocation in relation to policy objectives; 

- delivery of client service; 

- causes of fraud and inefficiency; and, 

- automation and communication. 

Objective C: Follow-up and evaluate 

results of OIG products and services to 

assess their effectiveness in promoting 

positive change. 

Strategy: 

- Identify, as appropriate, lessons learned to improve 

timeliness and quality; and, 

- conduct follow-up reviews to determine if intended 

results have been achieved. 

Objective D: Satisfy customers, 

consistent with the independent nature 

of the OIG. 

Strategy: 

- establish professional communication and 

interaction with customers to promote the open 

exchange of ideas; 

- incorporate customer feedback, as appropriate; and, 

- be open to customer-generated solutions and 

options. 

Objective A: Maintain a dynamic strategic 

planning process. 

Strategy: 

- periodically review and update the strategic plan to 

address changing OIG and FEC priorities; and, 

- identify factors that influence organizational change 

and develop short and long term plans to address them. 

Objective B: Plan and conduct costeffective work that address critical issues 

and results in positive change. 

Strategy: 

- solicit FEC and Congressional input in planning OIG 

activities; 

- develop internal planning mechanisms to support FEC 

goals and priorities; 

- ensure that priorities of IG are effectively 

communicated; and, 

- identify specific targets for OIG review that are the most 

cost-effective 

Objective C: Identify customer needs and 

provide products and services to meet 

them. 

Strategy: 

- establish new customer feed back mechanisms;
 

- consider and evaluate customers feedback when
 

planning and developing products and services;
 

- respond to Congressional inquires and request for
 

briefing and testimony;
 

- promote open exchange of ideas and information
 

through outreach and through use of e-mail; and,
 

- receive, evaluate, and respond, as appropriate, to
 

information received through the OIG hotline and other
 

sources.
 

Objective D: Implement efficient, effective, 

and consistent resolution and follow-up 

procedures. 

Strategy: 

- ensure that IG follow-up procedures are followed and 

that management is aware of their role in the process; 

- establish common OIG standards for terminology, date 

maintenance and communications. 

Objective E: Establish a positive and 

productive working environment. 

Strategy: 

- reengineer or streamline OIG procedures to achieve the
 

most effective use of resources; and,
 

- ensure that necessary technologies, evolving and
 

otherwise, are made available to staff as needed.
 

Objective A: Attract and retain well-qualified, 

diverse and motivated employees. 

Strategy: 

- develop and implement a comprehensive recruiting program 

that attracts a broad population with the knowledge, skills, 

abilities, and expertise necessary to make meaningful 

contributions to the OIG; 

- assess employee satisfaction and develop strategies to 

address employee concerns; 

- identify reasons for staff departures and develop plans to 

foster greater staff retention; and, 

- adhere to EEO principles and strive to maintain a diverse work 

force. 

Objective B: Provide training and 

developmental opportunities to employees. 

Strategy: 

- assess training needs in relation not only to employee but also 

office needs as well; 

- ensure that Government Auditing Standards in relation to 

training are adhered to; and, 

- maintain a reporting system to ensure that educational 

requirements are met. 

Objective C: Assess, recognize, and reward, 

when possible, performance that contributes to 

achieving the OIG mission. 

Strategy: 

- develop and articulate expectations for each employee's 

performance, including contributions in meeting the mission & 

goals of the OIG; and, 

- ensure that rewards, when possible, are given in recognition of 

exceptional employee performance. 

Objective D: Create and maintain a working 

environment that promotes teamwork and 

effective communication. 

Strategy: 

- ensure that communication between employees is open; 

- provide employees with the tools and incentives they need to 

adequately perform their duties. 

Performance Measures: Determine the 

timeliness and quality of products and Performance Measures: An annual audit Performance Measures: All employees meet 

services; their effectiveness in plan is issued; strategic plan is periodically the training requirements; all employees have 

promoting positive change; and, reach reviewed; and, necessary technology is performance standards; and all employees 

agreement with management on at least provided to staff to enable them to most meet the basic requirements for the position in 

90% of recommendations within six efficiently perform their duties. which they were hired to perform. 

months of the report issue date.