Semiannual Report to Congress

October 1, 2016 – March 31, 2017

May 2017

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

The Office of Inspector General (OIG) experienced a significant change in the midst of 

a productive six months. Lynne A. McFarland, the first and only permanent Inspector 

General (IG) of the Federal Election Commission (FEC), retired as of March 3, 2017. 

IG McFarland began her career at the FEC in 1976. On February 9, 1990, she was appointed the IG at the FEC, a position she held for 27 years while building the OIG from 

the ground up. IG McFarland served with distinction on the Council of the Inspectors 

General on Integrity and Efficiency as vice chair, as a member of the Professional Development Committee, and IG Candidate Recommendation Panel, among other leadership positions. IG McFarland also represented the interests of IGs from smaller Federal 

agencies. Not only did IG McFarland retire as the longest-serving Federal IG, but she 

served as a mentor to two future IGs, including the current IG at the Federal Maritime 

Commission.

This semiannual report incorporates changes mandated by the Inspector General 

Empowerment Act, which became law in December 2016. During this busy reporting 

cycle, the FEC OIG passed both its audit and investigative peer reviews, and conducted 

a peer review of the National Endowment for the Arts OIG.

As always, the OIG staff has remained diligent and hard-working, and I commend their 

professionalism during this reporting period. The OIG is fortunate to have employees 

of such a high caliber.

J. Cameron Thurber

Deputy Inspector General

Federal Election Commission

April 28, 2017

A Message from the Deputy Inspector General

OFFICE OF THE INSPECTOR GENERAL

J. Cameron Thurber
v

April 1, 2013 - September 30, 2013

v

October 1, 2016 – March 31, 2017

Executive Summary 1

OIG Audit Activity 3

OIG Audit Follow-up Activity 5

OIG Special Review Activity 6

OIG Hotline Information 7

OIG Investigative Information 8

Additional OIG Activity 10

Council of the Inspectors General on Integrity and Efficiency (CIGIE) Activity 11

OIG Contacts 12

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

Reporting Requirements 15

Table I – Questioned Costs 17

Table II – Funds Put To Better Use 18

Table III – Summary Of Audit And Inspection Reports With 19

Corrective Actions Outstanding For More Than Six Months

Table IV – Summary of Investigative Reports 20

Appendix A: Peer Review Results 21

Appendix B: Review of Outstanding Recommendations as of February 2017 23

Appendix C: The Federal Election Commission 43

 Office of the Inspector General

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

1

October 1, 2016 – March 31, 2017

Executive Summary

began on the FY 2017 Financial Statement Audit (see 

page 3).

A risk assessment was accomplished for the Audit 

of Contract Management and Oversight. In an effort to streamline the workload of the auditors, a decision was made to merge the monitoring of the FEC’s 

contract with The Elocen Group LLC, which is assisting with the logistics of the move of the FEC’s headquarters, into the audit (see page 3).

The Review of Outstanding Recommendations as 

of February 2017 was released this reporting period. 

We continued our review of recommendations from 

the previous six audits and inspections that were outstanding as of August 2016, and added the Audit of 

the FEC’s Telework Programs. The OIG semiannually 

provides the Commission with the status of outstanding recommendations as of February and August of 

each year. For this reporting period, the OIG was 

able to collectively close 16 outstanding recommendations from 2 inspections and 1 audit. Additionally, 

11 more outstanding recommendations were closed 

based on the Risk Acceptance Memorandum dated 

December 19, 2016. Noteworthy progress has also 

been made by the agency with outstanding recommendations in the area of the IT security program 

(see page 5).

The FEC’s Digital Accountability and Transparency 

Act of 2014 (DATA Act) Readiness Review was published, and the OIG concluded that the agency appears to be on schedule to meet the first reporting 

deadline under the DATA Act in May 2017. The OIG is 

also participating in a Council of Inspectors General 

on Integrity and Efficiency (CIGIE) government purchase card data project, which is currently in the 

planning phase; testing should be completed during 

the next reporting period (see page 6).

The Inspector General Act of 1978, as amended (IG 

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

economy, efficiency, and effectiveness of agency resources and programs; and preventing fraud, waste, 

abuse, and mismanagement. The IG Act also requires 

the IG to keep the Federal Election Commission 

(Commission or FEC) and Congress fully and currently informed about problems and deficiencies in 

the Commission’s operations and the need for corrective action.

This semiannual report (SAR) includes the major accomplishments of the FEC Office of Inspector 

General (OIG), as well as relevant information regarding additional OIG activities. The executive summary highlights the most significant completed activities of the OIG. The Inspector General Empowerment 

Act, which became law in December 2016, added 

additional reporting requirements to the SAR; those 

changes are incorporated herein. Additional details 

pertaining to each activity (e.g., audits, hotline, and 

investigations) can be found in subsequent sections 

of this report. The honesty, integrity, and diligent work 

of our entire IG staff make the accomplishments of 

the OIG possible.

The Audit of the FEC’s Fiscal Year (FY) 2016 

Financial Statements was completed and released 

during this reporting period. Leon Snead & Company 

(LSC), the independent auditor contracted to perform 

the audit, reported one significant deficiency related 

to the FEC’s Information Technology (IT) Security 

Program, on which progress was being made, and 

noted 14 individual recommendations for improvement. Overall, LSC issued an unmodified opinion on 

the agency’s financial statements for FY 2016, finding them to be presented fairly in accordance with 

accounting principles. The OIG exercised the third 

year option on LSC’s contract, and preliminary work 
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress

Six investigations were closed this reporting period, 

including one in which a senior official was allowed to 

telework cross-country and use family medical leave 

in violation of policies at a cost to the agency of approximately $68,000. Investigations of FEC staff communications with the Internal Revenue Service (IRS) 

and misuse of transit benefits were also closed (see 

page 8).

This reporting period was especially active in the areas of peer reviews. Both the FEC OIG’s audit and 

investigative programs passed their respective peer 

reviews. The FEC OIG also conducted a peer review 

of the National Endowment for the Arts OIG. (see 

page 21).
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April 1, 2013 - September 30, 2013

3

October 1, 2016 – March 31, 2017

Audit of the FEC’s FY 2016 Financial Statement

Assignment Number: OIG-16-01

Status: Released November 2016

Report Location:

http://www.fec.gov/fecig/documents/FY2016Financi

alStatementAuditReport-Final.pdf

Leon Snead & Company began final testing for the 

audit at the start of this semiannual reporting period. Once testing was completed, LSC provided the 

OIG with the final audit report containing all final audit results and findings. LSC reported 1 significant 

deficiency related to the FEC’s IT Security Program, 

and noted 14 individual recommendations for improvement. LSC acknowledged the progress that the 

FEC’s Office of the Chief Information Officer (OCIO) 

has made to address this internal control weakness.

OCIO management has taken on a large project to 

implement applicable National Institute of Standards 

and Technology’s (NIST) IT security standards to improve the agency’s security program. Many of the 

recommendations reported for improvement are dependent on the completion of the NIST implementation project.

Based on the audited information as a whole, LSC 

determined that the FEC’s financial statements were 

presented fairly in accordance with accounting principles generally accepted in the United States, resulting in an unmodified opinion on the agency’s financial 

statements for FY 2016.

Audit of Contract Management and Oversight

Assignment Number: OIG-16-02

Status: In Progress

During this semiannual reporting period, the OIG 

completed an audit risk assessment. The risk assessment focused directly on the scope and objective of the audit to ensure significant areas of concern 

and high risk were captured in the audit plan procedures for testing.

In addition, the OIG’s Chief Investigator and Counsel 

to the IG identified three closed hotline cases involving agency contracts which did not warrant an investigation but were appropriate for audit follow-up. The 

case details were forwarded to the auditor-in-charge 

for potential inclusion in the audit. The auditor-incharge reviewed the cases, and revised the audit 

plan and procedures to capture the areas from the 

hotline case files that could be reviewed from an audit perspective. Also, for purposes of efficiency and 

leveraging other OIG work, the OIG decided to merge 

the planned assignment for Monitoring the Elocen 

Contract with the Audit of Contract Management and 

Oversight, as the anticipated work for the monitoring 

assignment would also be conducted during the audit and merging the matters would avoid a duplication 

of effort.

The OIG’s next steps for the audit will be to obtain 

system information from management listing all 

agency contracts for sampling and testing purposes.

OIG Audit Activity
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Office of Inspector General Semiannual Report to Congress

Audit of the FEC’s FY 2017 Financial Statements

Assignment Number: OIG-17-01

Status: In Progress

The OIG exercised the third option year of its contract with LSC to perform the agency’s annual financial statement audit. The preliminary planning phase 

of the audit began during this reporting period. LSC 

provided the Audit Engagement Letters to management and the OIG on March 14, 2017, detailing the 

audit scope, objective, and the role of management 

throughout the audit process.

As in the past, LSC has requested a signed letter be 

provided from those charged with governance and 

the Acting Chief Financial Officer confirming their 

understanding of the audit engagement letter. Also, 

the OIG Contracting Officer’s Representative (COR) 

scheduled the audit entrance conference for April 18, 

2017, and planned and scheduled audit status meetings for all phases of the audit.

The audit timeline has been finalized by LSC, and 

the prepared by client (PBC) list that details all the 

required documentation that will need to be provided 

by management throughout the entire audit process 

has been finalized and distributed for management’s 

review.

The OIG COR is in the process of gathering the necessary administrative documentation and clearances 

to approve LSC to begin work on site as scheduled 

on May 9, 2017.
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April 1, 2013 - September 30, 2013

5

October 1, 2016 – March 31, 2017

Review of Outstanding Recommendations as of 

February 2017

Assignment Number: OIG-16-04

Status: Released March 2017

Report Location:

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

OutstandingRecommendationsasofFebruary2017-

OIG-16-04.pdf

The OIG semiannually provides to FEC a report on 

the status of outstanding recommendations as of 

February and August of each year.

For this reporting period, we continued our review 

of the previous six audits and inspections that were 

outstanding as of August 2016, and added the Audit 

of the FEC’s Telework Programs, as its recommendations have been outstanding for more than six 

months since the release date of the report.

Based on the results of the audit follow-up review, the 

OIG was able to collectively close16 outstanding recommendations from the following OIG reports:

• Inspection of the FEC’s Disaster Recovery 

Plan and Continuity of Operations Plans

• Inspection of the FEC’s Compliance 

with FMFIA/OMB A-123

• Audit of the FEC’s Telework Programs

In addition to the normal audit follow-up process, the 

OIG provided management with a Risk Acceptance 

Memorandum that included 13 outstanding recommendations, collectively, from the Follow-up Audit 

of Privacy and Data Protection and the Continuity 

of Operations Plan Inspection (COOP Inspection) 

that management has not agreed to sufficiently implement since the release of both reports. The Risk 

Acceptance Memorandum, dated December 19, 2016, 

included an assessment of the 13 recommendations 

OIG Audit Follow-up Activity

and any potential risks to the agency if not sufficiently implemented. Based on management responses, 

the OIG closed 11 of the 13 recommendations, and 

2 additional recommendations remain open as management subsequently agreed to implement both 

recommendations.

Based on the 2 separate reviews and various assessments, a total of 27 recommendations were closed, 

leaving 59 recommendations open as of February 

2017.

A noteworthy accomplishment was identified by the 

OIG during this audit follow-up review. The OIG determined that progress is being made with the agency’s IT security program in areas addressed by the 

OIG’s report containing the highest number of outstanding recommendations, the COOP Inspection, 

since the agency’s new Chief Information Security 

Officer (CISO) has been onboard. Information has 

been readily provided by the CISO to the OIG to support corrective actions being made, and the CISO 

has shown a willingness to work with the OIG in resolving outstanding issues. The OIG greatly appreciates this open collaboration and hopes for a continued cooperative working relationship in the future.

For a summary of each audit, inspection, and evaluation report issued prior to the commencement of this 

reporting period for which there are outstanding recommendations, please see Appendix B, OIG Review 

of Outstanding Recommendations as of February 

2017. There are no audit, inspection, and evaluation reports for which a management decision has 

not been made or management has not returned a 

comment within 60 days after being provided with the 

report.
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Office of Inspector General Semiannual Report to Congress

Results of the FEC’s Digital Accountability and 

Transparency Act of 2014 Readiness Review

Assignment Number: OIG-17-02

Status: Completed

The FEC’s DATA Act Readiness Review was completed during this reporting period. The primary objective 

of the readiness review was to determine the status 

of the FEC’s preparedness efforts to report financial and payment information in accordance with the 

DATA Act and related guidance issued by the Office of 

Management and Budget (OMB) and the Department 

of the Treasury (The Treasury). The review included an 

assessment of the governance structure, the FEC’s 

implementation plans submitted to OMB, and internal 

project management activities that have been planned 

and completed regarding the reporting of financial and 

payment information in accordance with the DATA Act. 

This review was generally conducted in accordance 

with the CIGIE Quality Standards for Inspections and 

Evaluations.

The scope of the review included an assessment of the 

FEC’s DATA Act implementation activities and status 

as of October 31, 2016. Our assessment concentrated 

on Steps 1- 4 of the Treasury’s Agency 8-Step Plan and 

Playbook, Version 2.0.1

 We also reviewed the status 

of FEC’s efforts to address Steps 5-7 of the Playbook 

even though they were not scheduled to be fully addressed until a later time. Based on our review of the 

FEC’s DATA Act Implementation project, we concluded 

that the FEC appears to be on schedule to meet the 

first established reporting deadline of May 2017.

The OIG notes that the FEC is dependent on its 

Federal Shared Services Provider, which is the United 

States Department of Agriculture (USDA), to capture 

1

 Treasury released versions 1.0 and 2.0 of the Playbook in June 

2015 and June 2016, respectively.

and provide standard data elements with the exception 

of award specific data elements.

The OIG issued a Management Letter summarizing 

the results on December 1, 2016. We did not make any 

formal recommendations and therefore, Management 

Responses were not requested nor received.

The Council of Inspectors General on Integrity and 

Efficiency (CIGIE) Purchase Card Project

Assignment Number: OIG-17-04

Status: In Progress

The CIGIE IT Committee’s mission is to facilitate effective IT audits, evaluations, and investigations by OIGs, 

and to provide a vehicle to express the OIG community’s perspective on Government-wide IT operations.

In October 2016, the CIGIE IT Committee initiated a 

Government-wide project to analyze and review government purchase card data to determine risks associated with purchase card transactions. The FEC OIG 

volunteered to participate in this Government-wide project, and planning meetings began in December 2016.

The CIGIE IT community has created standard algorithms to be used for data-analysis and to identify highrisk transactions. Each participating OIG will independently conduct a review of their respective agencies 

and departments’ transactions using the standard algorithms and applicable methodologies to determine each 

agency’s results. Each OIG will be required to certify its 

results through its internal quality control process to ensure that the information has been reviewed in accordance with required standards. The participating OIGs 

will then provide their certifications to the USDA OIG, 

which has agreed to compile the results and publish a 

consolidated report for the CIGIE IT Committee.

OIG SPECIAL REVIEW Activity
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017

OIG Hotline Information

The OIG Hotline exists to enable FEC employees, 

FEC contractors, and the public to have direct and 

confidential contact with the OIG. All allegations and 

referrals of fraud, waste, abuse, mismanagement, 

and misconduct involving FEC employees, contractors, programs, operations, property, or funds received through any means 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 have an 

investigation initiated, referred to management or another agency, or closed with no further action taken.

The OIG considers many factors when evaluating 

whether to open an investigation based on a hotline 

complaint, and acknowledges that every hotline complaint received by the OIG will not be investigated, 

and in many cases a complaint does not merit an 

investigation. 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 FEC official for 

possible further review. Often, a hotline complaint will 

be closed because a preliminary inquiry found the 

allegations to be unsubstantiated, there is a lack of 

information to proceed, or the issue giving rise to the 

allegation has been otherwise resolved. Hotline evaluation decisions are made by the Chief Investigator, 

with concurrence from the IG.

The OIG frequently receives reports and allegations 

which are misdirected complaints that should have 

been routed to the 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. In cases of misdirected complaints, a response is 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 campaign finance violation but 

falls under the purview of another FEC component 

or government agency 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.

During this reporting period, 15 new hotline complaints were opened and 16 hotline complaints were 

closed; 12 hotline complaints remain open.
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress

OIG Investigative Information

OIG investigations seek out facts related to allegations of wrongdoing. OIG investigations may address 

administrative, civil, and criminal violations of laws, 

regulations, and policies. The subject of an OIG investigation can be any agency employee, an FEC 

contractor, 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.

During this reporting period no new investigations 

were opened, six investigations were closed, and 

four investigations remain open. The closed investigations included:

Possible Theft by Employee

An FEC employee alleged that unauthorized 

withdrawals from a personal checking account 

were possibly made by another unknown FEC 

employee who had access to the account information in performance of official duties. The OIG 

found no evidence that an FEC employee was 

involved in the unauthorized withdrawals and the 

OIG closed the case. No reasonable grounds of a 

violation of Federal criminal law were established 

that would have warranted a referral to the United 

States Department of Justice (DOJ).

Misuse of Transit Subsidy

The transit subsidy investigation involved a review of the current and former employees’ use 

of the FEC SmarTrip card transit subsidy. The 

OIG found that from January 2015 to June 2016, 

SmarTrip usage was not reviewed periodically as required by the FEC’s Directive 54, and 

recommendations from the 2006 Audit of the 

Commission’s Transit Benefits Program had not 

been implemented, contrary to statements by 

FEC management. Other findings included instances of separated employees not removed 

from the Program and some using benefits after 

their departure from the FEC, employees receiving a subsidy even though they were ineligible, 

employees whose transit subsidy documents 

were not amended to reflect telework or commuting schedules, and employees receiving a subsidy in excess of commuting costs. The report was 

provided to the Commission and FEC management for review. Due to potential criminal violations, the case was discussed with the DOJ on 

February 21, 2017, and a declination was issued 

on February 23, 2017, but no formal presentation 

of an individual for prosecution was made.

Senior Level Employee’s Telework use and the 

Family Medical Leave Act (FMLA)

A Senior Level employee was allowed to telework from California for six months and then take 

FMLA leave for an additional six months until the 

employee was eligible for retirement. The employee requested, and was allowed, to be demoted from a Senior Level to a new grade 15 position created specifically for the former employee. 

The OIG found that by accommodating the employee’s position change and telework allowance 

from California, the FEC’s FMLA policy, telework 

policy, and OPM requirements were violated. As 
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017

a result of preferential treatment, the former employee stayed onboard the FEC payroll for an additional six months, at a cost to the agency of 

$68,099 in salary and benefits, and retired with 

full benefits. The results were reported to the 

Commission and the case was closed. No reasonable grounds of a violation of Federal criminal 

law were established that would have warranted 

a referral to the DOJ.

Potential Contracting Violation

An FEC manager allegedly bypassed contracting 

policies and violated provisions of the Federal 

Acquisition Register (FAR). During the OIG’s investigation, expert assistance was sought from 

the General Services Administration (GSA) OIG. 

No violation of the FAR or statute was found, and 

the case was closed. No reasonable grounds of a 

violation of Federal criminal law were established 

that would have warranted a referral to the DOJ.

Communications with the Internal Revenue 

Service (IRS)

FEC employees were alleged to have committed 

statutory and regulatory violations in communicating with the IRS on non-public enforcement 

matters, and to have coordinated with the IRS 

in order to target tax exempt political organizations for increased scrutiny for political purposes. 

Allegations focused on whether the communications with the IRS constituted unapproved investigative activity, as actions defined by statute and 

regulation as investigative activity must not be 

undertaken by FEC personnel without approval 

by the Commission. Additionally, the alleged purpose of the communications was to coordinate 

the targeting of certain political organizations. 

An extensive investigation was initiated. Several 

Congressional committees notified the FEC that 

they were concurrently looking into the allegations. The investigation determined that the FEC 

employees did not violate any statute or regulation in their communications with the IRS, specifically that the communications did not constitute unapproved investigative activity as defined 

by statute and regulation. Further, no evidence 

was found that FEC staff attempted to improperly target any tax exempt organization. A report 

was provided to the Commission. No reasonable 

grounds of a violation of Federal criminal law 

were established that would have warranted a 

referral to the DOJ.

Improper Promotion

The OIG received information that an employee 

may have been pre-selected for a supervisory 

position and improperly promoted, which would 

constitute statutory violations concerning prohibited personnel practices. The allegation involved 

former managers, and no evidence was found 

that the promoted employee had knowledge of 

any violations. Expert assistance from the OPM 

was obtained in reviewing the matter. Based on 

the OPM review, it was determined that FEC 

management may have committed violations 

of prohibited personnel practices, and the matter was referred to the Office of Special Counsel 

(OSC) for further investigation. The OSC found 

technical FEC policy violations concerning promotions, but no evidence of a statutory violation 

involving preselection or the granting of an illegal preference. The OSC informed the OIG that 

FEC management had agreed to institute corrective action, and the case was closed. No reasonable grounds of a violation of Federal criminal 

law were established that would have warranted 

a referral to the DOJ.
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress

In addition to audit, inspection, hotline, and investigative work, the OIG performs an array of additional 

projects and activities. The IG also reviews and provides comments, when appropriate, on legislation 

provided by the CIGIE Legislative Committee.

Listed below are examples of the OIG’s additional activities during this reporting period:

• The OIG conducted an annual risk assessment of the FEC’s government purchase card program during this reporting 

period. The assessment resulted in no outstanding recommendations, and all recommendations pertaining to our February 

2015 travel card audit have been closed.

• An OIG senior auditor continues to serve 

as planning coordinator for the DATA Act 

working sub-group. The working subgroup, composed of select CIGIE and 

Government Accountability Office members, 

meets on a bi-weekly or monthly basis.

• Occasionally the OIG receives correspondence 

requesting specific information pertaining to 

the OIG. During this reporting period the OIG 

received three separate inquiries. Senators 

Grassley and Johnson requested information 

concerning outstanding recommendations, and 

the OIG provided the requested information.

• The Department of Veterans Affairs contacted the OIG to obtain information on what 

OIG positions are considered Capstone officials, and the OIG replied. The GSA OIG 

requested information concerning what other OIGs are doing with regards to workplace 

flexibility options such as telework and alternative schedules, and copies of our various workplace policies were provided.

Additional OIG Activity

• The Inspector General Empowerment Act of 

2016 was reviewed, and reporting changes 

were incorporated into the semiannual report.
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017

Council of the Inspectors General on 

Integrity and Efficiency

Prior to Inspector General Lynne McFarland’s retirement on March 4, 2017, she was an active member 

of the Executive Council, which is composed of the 

Chair, Vice Chair, the immediate past Chair and Vice 

Chair, an at-large member, and all CIGIE Committee 

Chairs. The Executive Council provides guidance on 

CIGIE initiated projects, the operating plans for each 

fiscal year, and the general business of CIGIE.

As a member of the Executive Council, the IG reviewed and rated nominees proposed to receive specific CIGIE awards. The IG served as a panel member for the 2016 Leadership Development program, 

and attended a program on “Improving your OIG and 

Employee Engagement.” In addition, the IG was a 

member of the Professional Development Committee 

and Vice Chair of the Budget Committee.

As part of the CIGIE Training Institute’s New Leaders 

program, the IG participated in “Lunch with the IG” 

sessions. The IG covered various subjects pertaining 

to leadership, CIGIE and issues that could impact the 

IG community. 
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OIG contacts run the gamut, from citizens expressing their views or trying to reach the right FEC component to 

graduate students doing research. Contacts requesting information concerning where to submit a complaint or 

concern are directed to the appropriate FEC component or other agency. Other citizen contacts are handled and 

responded to as appropriate for the circumstances.

The table below is a reflection of the total contacts received by the OIG for the reporting period. These contacts 

were made through various sources such as telephone calls, emails, faxes, U.S. mail, and personal visits to the 

OIG. Those forwarded for action were referred to another FEC component and/or appropriate outside source

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

2,992 140 2,814 38

OIG Contacts
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017

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, 2016 – March 31, 2017:

MEETINGS:

List of Training, Meetings

and Conferences

Host / Sponsor Topic / Subject

Council of Inspectors General on 

Integrity and Efficiency (CIGIE) 

Monthly Meetings

Executive Council Meetings

Budget Committee Meetings

Professional Development 

Committee Meetings

Leadership Development 

Subcommittee Meetings

Quarterly Small / Unique IG 

Quarterly Meetings

2017 GAO Coordination Meeting

Council of Counsels to the Inspectors General Monthly Meetings

Small OIG Working Group Meeting

Government Accountability Office DATA Act Working Group Joint Meetings

Federal Election Commission

Bi-weekly Directors’ Meetings with 

IG, Acting GC, SD & Acting CFO

Finance Committee Meetings

Lease Renewal Team Meetings

New Employee Orientations

Administrative Liaison Groups Meetings
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HOST / SPONSOR TOPIC / SUBJECT

Council of the Inspectors General 

on Integrity and Efficiency

2016 Leadership Forum

Culture Risk: How to Mitigate it in 

your Office and Agency

Introductory Auditor

FAEC – DATA Act Required Review Workshop

Association of Inspectors General AIG Annual Conference

Association of Certified Fraud Examiners

2016 ACFE Law Enforcement and 

Government Anti-Fraud Summit

Principles of Fraud Examination

Human Resources Institute

Federal Human Resources: An Overview

Federal Employee Relations: An Introduction

Institute of Internal Auditors Conducting a Contract Fraud and 

Abuse Risk Examination

Office of Special Counsel Prohibited Personnel Practices 

i-Sight Investigation Report Writing: A Nuts and Bolts Approach

Wolters Kluwer 2016 TeamMate Conference

Financial Research Associates Fraud Risk Management for Government

Gov-Loop How to Define and Build your Personal Brand

Federal Election Commission

Supervisory Training: Whistleblower Protection

Mandatory Ethics Training

Pre-Retirement Workshop

TRAINING/CONFERENCES/PRESENTATIONS:
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April 1, 2013 - September 30, 2013

15

October 1, 2016 – March 31, 2017

Reporting Requirements

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) 19

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) 17

Section 5(a)(9) Recommendations that Funds be put to Better Use (Table II) 18

Section 5(a)(10)(A) 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)(10)(B) Summary of Audit Reports Issued Before the start of the Reporting 

Period for which No Management Comment was Returned Within 

60 Days

N/A

Section 5(a)(10)(C) Summary of Audit Reports Issued Before the 

Start of the Reporting Period for which There Are 

Outstanding Unimplemented Recommendations

23; App. B

Section 5(a)(11) Significant Revised Management Decisions None

Section 5(a)(12) Management Decisions with which the 

Inspector General is in Disagreement None

Section 5(a)(14) Peer Review Recommendations 21; App. A

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

General Act Amendments of 1988 are listed below:
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IG ACT DESCRIPTION PAGE

Section 5(a)(17), (18) Investigative Reports Table and Metrics (Table IV) 20

Section 5(a)(19) Investigations Involving a Senior Government 

Employee with Substantiated Misconduct 8

Section 5(a)(20) Instances of Whistleblower Retaliation None

Section 5(a)(21) Attempts by the Agency to Interfere with OIG Independence None

Section 5(a)(22) Undisclosed Inspections, Evaluations, Audits, and Investigations None
17

April 1, 2013 - September 30, 2013

17

October 1, 2016 – March 31, 2017

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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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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April 1, 2013 - September 30, 2013

19

October 1, 2016 – March 31, 2017

RECOMMENDATIONS

Dollar Value of 

Aggregate Potential 

Report Title Cost Savings Report 

Number

Issue

Date Number Closed Open

Audit of the Commission’s 

Property Management Controls OIG-09-02 03/10 36 35 1 0

2010 Follow-up Audit 

of Procurement and 

Contract Management

OIG-10-02 06/11 29 28 1 0

2010 Follow-up Audit of 

Privacy and Data Protection OIG-10-03 03/11 45 202 25 0

Inspection of the Federal 

Election Commission’s Disaster 

Recovery Plan and Continuity 

of Operations Plans

OIG-12-06 01/13 30 193 10 0

Audit of the Federal Election 

Commission’s Office of 

Human Resources

OIG-12-05 07/13 26 18 8 0

Inspection of FEC’s Compliance 

with FMFIA/ OMB Circular A-123

OIG-14-01 06/14 8 3 5 0

Audit of the FEC’s 

Telework Programs

OIG-15-03 06/16 11 2 9 0

Table III

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

than six months

Cumulative Total Of Outstanding Recommendations 59

2

 Three recommendations closed due to management’s acceptance of risk.

 3 Eight recommendations closed due to management’s acceptance of risk.
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Number

Total Number of Investigative Reports Issued 6

Total Number of Persons Referred to 

DOJ for Criminal Prosecution 0

Total Number of Persons Referred to 

State and Local Prosecuting Authorities 

for Criminal Prosecution 0

Total Number of Indictments and Criminal 

Information Resulting from Any Prior 

Referral to Prosecuting Authorities

0

Table IV

Summary of Investigative Reports

Metrics Used for Developing Data for Table IV:

The Total Number of Investigative Reports Issued reflects the number of all Reports of Investigation (ROI) issued to FEC management, 

the Department of Justice, or State and local prosecuting authorities during the reporting period;

The Total Number of Persons Referred to DOJ for Criminal Prosecution and Total Number of Persons Referred to State and Local Prosecuting Authorities for Criminal Prosecution reflects the total number of presentations of individuals for criminal prosecution made by the 

FEC OIG to the respective criminal prosecuting authorities during the reporting period;

The Total Number of Indictments and Criminal Informations Resulting from Any Prior Referral to Prosecuting Authorities includes all indictments and informations issued during the reporting period by Federal, State, or local criminal prosecuting authorities based upon any 

referral by the FEC OIG, whether the referral was made during this reporting period or a prior reporting period.
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017

Appendix A

PEER REVIEW RESULTS

In accordance with the Dodd-Frank Wall Street 

Reform and Consumer Protection Act of 2010

(Section 989C of P.L. 111-203), which amended 

Section 5 of the Inspector General Act of 1978, OIGs 

are required to include in their semiannual reports to 

Congress the results of peer reviews of their offices, 

as well as outstanding and not fully implemented recommendations from peer reviews the OIG received 

from another OIG, and outstanding and not fully implemented recommendations the OIG made in any 

peer review it performed for another OIG.

OIG PEER REVIEW ACTIVITY

Peer Review of the FEC OIG’s Audit Program

Assignment Number: N/A

Status: Completed

In accordance with the Council of Inspectors General 

on Integrity and Efficiency Audit Peer Review schedule, the Farm Credit Administration (FCA) OIG conducted an audit peer review of the FEC OIG for 2016. 

The entrance conference and FCA OIG fieldwork 

was conducted at the FEC on January 24, 2017.

During fieldwork, the FCA OIG selected and reviewed the FEC OIG’s Audit of the Federal Election 

Commission’s Telework Programs and the OIG’s 

monitoring documentation of the 2015 Federal 

Election Commission Financial Statement Audit. A final system review report was issued to the FEC OIG 

on February 11, 2014 and we received a pass rating. 

There were no weaknesses identified in the system 

review report.

Peer Review of the National Endowment for the 

Arts (NEA) OIG’s Audit Program

Assignment Number: OIG –17-02

Status: Completed January, 2017

The FEC OIG conducted a peer review of the NEA 

OIG during this reporting period. The peer review entrance conference was held on December 6, 2016, 

and fieldwork was completed in December 2016. 

Following the completion of the fieldwork, the FEC 

peer review team held an exit conference with the 

NEA IG and staff on January 5, 2017, to discuss the 

results of the peer review and findings to be included 

in the draft report and letter of comment. The FEC 

OIG prepared the draft report and comment letter 

based on the documentation and evidence reviewed, 

and information discussed during the exit conference.

The draft report was provided to NEA OIG on January 

13, 2017, and the letter of comment was provided on 

January 23, 2017. The NEA OIG provided official written response to the FEC OIG on January 23, 2017. 

The NEA OIG did not have any suggested changes to the report and agreed with the peer review results. The FEC OIG completed and provided the final 

peer review report and comment letter to NEA OIG 

on January 27, 2017. The final peer review report contained one recommendation for the NEA to rescind 

its designation of the NEA chairman “as the point-ofcontact for day-to-day supervision and reporting purposes,” which is in conflict with the IG Act.
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Quality Assessment of the Federal Election 

Commission’s Investigative Program

Assignment Number: N/A

Status: Completed November, 2016

The OIG recently passed its quality assessment review, or peer review, of its investigative program and 

operations. The peer review was conducted by the 

Securities and Exchange Commission (SEC) OIG. 

Unlike mandatory audit peer reviews, investigative 

peer reviews for OIGs that do not have statutory law 

enforcement authority, such as the FEC OIG, are 

strictly voluntary. The FEC OIG has been involved in 

the voluntary investigative peer review program since 

its inception, as the OIG believes it is important to 

ensure its investigative operations meet the quality 

standards for internal controls and management procedures established by CIGIE.

On January 11, 2016, SEC IG Carl Hoecker issued 

the investigative peer review report on the FEC OIG’s 

investigative operations. The report included a determination that the FEC OIG’s investigative operations 

are “in compliance with the quality standards established by the CIGIE.” The report included no recommendations for improvement.
23

April 1, 2013 - September 30, 2013

23

October 1, 2016 – March 31, 2017

Federal Election Commission

Office of Inspector General

Review of Outstanding Recommendations 

as of February 2017

March 2017

Assignment No. OIG-16-04

Appendix B
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April 1, 2013 - September 30, 2013

25

October 1, 2016 – March 31, 2017
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October 1, 2016 – March 31, 2017
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017
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October 1, 2016 – March 31, 2017
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017
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April 1, 2013 - September 30, 2013

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October 1, 2016 – March 31, 2017
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October 1, 2016 – March 31, 2017

Appendix C

The Federal Election 

Commission

In 1975, Congress created the Federal Election 

Commission 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 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 Commissioners consist of – 

Matthew S. Petersen, Chair; Steven T. Walther, Vice 

Chair; Commissioners Lee E. Goodman; Carolyn C. 

Hunter; 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
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