Semiannual Report to Congress

April 1, 2013 – September 30, 2013

November 2013

Federal Election Commission - Office of Inspector General

999 E Street, N.W. Suite 940, Washington, D.C. 20463
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April 1, 2013 - September 30, 2013

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

OFFICE OF THE CHAIR
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Office of Inspector General Semiannual Report to Congress
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April 1, 2013 - September 30, 2013
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Office of Inspector General Semiannual Report to Congress

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April 1, 2013 - September 30, 2013

Executive Summary 1

The Federal Election Commission 4

Office of Inspector General 5

OIG Audit Activity 6

OIG Audit Follow-up Activity 8

OIG Hotline Information 9

OIG Investigations 11

Additional OIG Activity 12

Council of the Inspectors General on Integrity and Efficiency (CIGIE) Activity 13

OIG Contacts 14

List of Training, Meetings and Conferences Attended by OIG Staff 15

Reporting Requirements 17

Table I – Questioned Cost 18

Table II – Funds Put To Better Use 19

Table III – Summary Of Audit And Inspection Reports With 20

Corrective Actions Outstanding For More Than Six Months

Appendix A: Peer Review Results 21 

Appendix B: OIG Fiscal Year 2013 Work Plan 23

Table of Contents
Office of Inspector General Semiannual Report to Congress

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April 1, 2013 - September 30, 2013

Executive Summary

In April 2013, the OIG issued formal notices of findings and recommendations (NFRs) to FEC management; and the final report was released on July 31, 

2013. Based on the results of audit work performed, 

the OIG concluded the OHR has significant leadership and operational weaknesses that are impacting 

the office’s ability to provide effective customer service and fulfill the day-to-day responsibilities of the 

office. OIG notes that subsequent to the completion 

of the OIG’s audit fieldwork, and prior to the release 

of the final audit report, management and OHR had 

already begun to implement corrective actions they 

believed would address some of the recommendations included in the audit report. 

The audit resulted in nine (9) findings and twenty-six 

(26) recommendations to improve the FEC Office of 

Human Resources. Management generally agreed 

with twenty-five (25) and disagreed with one (1) 

recommendation. For detailed information pertaining to the Audit of the FEC’s Human Resources 

Office (OIG-12-05), see the section titled OIG Audit 

Activity (starting on page 6). 

For the fifth (5) consecutive year, the Office of 

Inspector General continued its contract with Leon 

Snead & Co. (LSC) to conduct the Federal Election 

Commission’s annual financial statement audit in accordance with generally accepted auditing standards. 

The fiscal year (FY) 2013 financial statement audit is 

conducted in four phases: planning; review and evaluation; testing; and reporting. During this semiannual reporting period, LSC completed the planning

phase, the review and evaluation phase, and part of 

the testing phase. 

During the review and evaluation phase, LSC reviewed the FEC’s compliance with applicable laws 

and regulations, and followed up with management regarding the status of the prior year’s audit 

The Inspector General Act of 1978 (the IG Act), as 

amended, states that the Inspector General is responsible for conducting audits, inspections, investigations, and recommending policies and procedures 

that promote economy, efficiency, and effectiveness 

of agency resources and programs, and 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.

The executive summary highlights the most significant activities of the Federal Election Commission 

(FEC) Office of Inspector General (OIG). Additional 

details pertaining to each OIG activity (i.e. audits, 

hotline, and investigations) can be found in subsequent sections of this report. The major accomplishments of the OIG would be impossible to achieve 

without the dedicated and outstanding efforts of the 

entire OIG staff. 

The Audit of the FEC’s Office of Human Resources 

(OHR) was completed during this reporting period. The OHR is a critical component of the agency 

and is responsible for several important functions 

including: recruitment and retention of qualified 

staff; employee-employer relations; administration 

of employee benefits; maintenance and processing of personnel records; and training, among other 

responsibilities.

The primary objectives of the audit were to: 1) assess the OHR customer service level and identify 

areas for improvement, where warranted; 2) assess 

the efficient and effective use of automated processes for human resource functions; and 3) assess 

whether OHR has adequate policies that are up to 

date to govern all HR related functions. 
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Office of Inspector General Semiannual Report to Congress

findings and recommendations. For the testing 

phase of the audit, the auditors conducted their 

SAS 114: Communication with Those Charged 

with Governance meeting with the Chair of the 

Commission, and the interim audit testing was also 

completed by the auditors. The final testing portion 

of the audit is expected to begin October 21, 2013. 

For detailed information pertaining to the Audit of 

the FEC’s Fiscal Year 2013 Financial Statements 

(OIG-13-02), see the section titled OIG Audit 

Activity (page 7).

During this semiannual reporting period, the 

OIG released the Review of Outstanding 

Recommendations as of June 2013 report to the 

Commission detailing the follow-up work conducted 

by the OIG and the status of the outstanding OIG 

audit and inspection recommendations. The report covered six (6) OIG assignments totaling 114 

outstanding recommendations; the OIG was able to 

collectively close forty-two (42) outstanding recommendations due to FEC management’s corrective 

actions. In addition, the OIG closed six (6) additional recommendations in part because management 

disagreed with these recommendations and made 

the decision not to apply the resources necessary 

to fully or adequately implement corrective actions. 

For detailed information pertaining to the Office 

of Inspector’s General Review of Outstanding 

Recommendations as of June 2013 (OIG-13-03), 

see the section titled OIG Audit Follow-up Activity

(starting on page 8).

Audit organizations conducting audits in accordance 

with generally accepted government auditing standards (GAGAS) are required to have an independent 

peer review every three years. The objective of the 

peer review program is to ensure an audit organization’s internal quality control system adequately 

provides reasonable assurance that applicable auditing standards, policies, and procedures are being 

followed.

The FEC OIG completed an audit peer review of the 

National Endowment for the Humanities (NEH) OIG 

on September 30, 2013. The final peer review report 

contained one (1) recommendation for NEH OIG to 

improve their system of quality control. For detailed 

information pertaining to the Peer Review of the 

National Endowment for the Humanities (NEH) OIG 

(OIG-13-04), see Appendix A (page 21).

During this reporting period, the Securities 

Exchange Commission (SEC) OIG conducted an 

investigative peer review of the FEC OIG. The investigative peer review process is a voluntary program for the FEC OIG, and is intended to ensure 

quality standards of investigations are followed. On 

September 23, 2013, SEC’s Inspector General 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. 

The OIG opened four (4) new hotline complaints 

and three (3) hotline complaints were closed during 

this reporting period. The OIG had four (4) open hotline complaints as of the close of the reporting period, including three (3) that were opened prior to the 

beginning of the reporting period. In addition, four 

(4) investigations were open at the end of the reporting period, including one (1) that was opened at 

the beginning of the reporting period and three (3) 

that were 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 9) or OIG Investigations (starting 

on page 11).

The Inspector General also serves as Vice Chair of 

the Council of the Inspectors General on Integrity 

and Efficiency (CIGIE). In this capacity, the IG supports the Chair, reviews various documents, attends 

weekly meetings with the Chair and CIGIE executive staff, and provides input into various issues that 

come before CIGIE. The IG is also Chair of the 

Inspector General Recommendation Panel.

The IG continues to be very involved in the 

Executive Council of CIGIE. The Executive Council 

is composed of the CIGIE’s Chair, Vice Chair, the 

past Vice Chair of the CIGIE, 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. 
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April 1, 2013 - September 30, 2013

The Council meets monthly to discuss issues that 

will affect CIGIE. For additional information pertaining to CIGIE activity, see the section titled Council 

of the Inspectors General on Integrity and Efficiency 

(CIGIE) Activity (starting on page 13).
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Office of Inspector General Semiannual Report to Congress

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. 

As of the end of this reporting period, September 

30, 2013, the FEC had four sitting Commissioners 

– Chair Ellen L. Weintraub; and Commissioners 

Caroline C. Hunter; Matthew S. Petersen and Steven 

T. Walther. On September 23, 2013, the U.S. Senate 

confirmed two new members to the Commission - 

Lee Goodman and Ann Ravel, in late October 2013, 

they were sworn in as Commissioners of the FEC. 
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April 1, 2013 - September 30, 2013

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.
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Office of Inspector General Semiannual Report to Congress

OIG Audit Activity

Audit of the Federal Election Commission’s 

Human Resources Office

Assignment Number: OIG-12-05

Status: Released July 2013

http://www.fec.gov/fecig/documents/HRaudit2013.

pdf

The Audit of the FEC’s Office of Human Resources 

(OHR) was completed during this reporting period. The OHR is a critical component of the agency 

and is responsible for several important functions 

including: recruitment and retention of qualified 

staff; employee-employer relations; administration 

of employee benefits; maintenance and processing of personnel records; and training, among other 

responsibilities.

The primary objectives of the audit were to: 1) assess the OHR customer service level and identify 

areas for improvement, where warranted; 2) assess 

the efficient and effective use of automated processes for human resource functions; and 3) assess 

whether OHR has adequate policies that are up to 

date to govern all HR related functions. 

The OIG held an entrance conference on July 5, 

2012 to discuss the preliminary scope of the audit 

and provide management with an understanding of 

the purpose of the audit. As part of the customer 

service assessment, the audit included an agencywide survey of FEC staff to seek feedback on their 

satisfaction level of service provided by the FEC HR 

Office. The OIG launched the agency-wide survey 

on September 14, 2012 and at the conclusion of the 

survey, the results of the survey were shared with 

OHR (employee names and other identifying information were not provided to OHR). The OIG utilized 

the survey results to help determine the areas for 

audit testing. 

Based on the survey conducted and information obtained during the planning phase of the audit, OIG 

testing focused on several areas, customer service, 

utilization of automated processes, and the adequacy of policies and procedures. The OIG’s audit 

testing of customer service included a review of the 

OHR’s HR on Demand system, a process which was 

implemented by OHR to track and monitor employee 

inquiries to OHR. Audit testing was completed at the 

end of March 2013 and the OIG briefed management 

on the potential audit findings. In April 2013, the OIG 

issued formal notices of findings and recommendations (NFRs) to FEC management and the final report was released on July 31, 2013. 

Based on the results of audit work performed, the 

OIG concluded the OHR has significant leadership 

and operational weaknesses that are impacting the 

office’s ability to provide effective customer service 

and fulfill the day-to-day responsibilities of the office. The audit also revealed that HR related policies are either outdated or do not exist. Further, the 

OIG identified another major factor hindering OHR’s 

ability to provide acceptable customer service is the 

poor planning and implementation of available tools 

and technology to streamline processes and improve 

operational efficiencies. 

OIG notes that subsequent to the completion of the 

OIG’s audit fieldwork, management and OHR had 

already begun to implement corrective actions they 

believe will address some of the recommendations 

included in the audit report. For example, corrective actions were underway to implement a new 

automated customer service tracking system called 

“Remedy,” pilot testing of human resources software 

(Federal Human Resources System) to help automate the OHR functions had started, and work on 
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April 1, 2013 - September 30, 2013

improved policies and procedures was evident. In 

addition, management had temporarily brought on 

a Senior Executive Service (SES) candidate from 

another agency to help the Director of OHR improve 

the office.

The audit resulted in nine (9) findings and twenty- six (26) recommendations to improve the FEC 

Office of Human Resources. Management generally 

agreed with twenty-five (25) and disagreed with one 

(1) recommendation. 

Audit of the FEC’s Fiscal Year 2013 Financial 

Statements 

Assignment Number: OIG-13-02

Status: In progress

For the fifth (5) consecutive year, the Office of 

Inspector General (OIG) continued its contract with 

Leon Snead & Co. (LSC) to conduct the Federal 

Election Commission’s (FEC) fiscal year (FY) 2013 

annual financial statement audit in accordance with 

generally accepted auditing standards. The entrance conference was held on April 24, 2013 and 

audit fieldwork commenced on May 13, 2013. 

The 2013 financial statement audit is conducted 

in four phases: Planning; Review and Evaluation; 

Testing; and Reporting. In addition, the OIG conducts bi-weekly status meetings with the auditors 

and FEC management to discuss any audit issues 

and provide a status update of the audit process. 

During this semiannual reporting period, LSC completed the planning, and review and evaluation

phases, and part of the testing phase. The planning

phase consisted of LSC preparing the Prepared by 

Client (PBC) listing1; and briefing the OIG on any 

changes to the audit plan from the prior year audit to 

include new requirements and/or standards for the 

2013 financial statement audit. 

1 List of documentation/reports requested by the Independent 

Public Accounting firm that are prepared and provided by the FEC 

for audit testing and completion of audit steps.

During the review and evaluation phase, LSC reviewed the FEC’s compliance with applicable laws 

and regulations, and followed up with management 

regarding the status of the prior year’s findings and 

recommendations. LSC’s review of prior year findings concluded that several of the audit recommendations had not been implemented, and as a result, 

several notices of findings and recommendations 

were provided to management in regards to the repeat findings and any new findings identified. All 

of the findings identified as of September 30, 2013 

were related to the agency’s information technology controls that can have an impact on financial 

reporting. 

For the testing phase of the audit, the auditors conducted their SAS 114: Communication with Those 

Charged with Governance meeting with the Chair 

of the Commission, and the interim audit testing 

was also completed by the auditors. The SAS 114 

meeting was conducted to provide governance with 

an explanation of LSC’s audit role and responsibilities, an update regarding the progress of the audit, and the audit issues identified and provided to 

management. 

The auditor’s also provided the Chair a detailed 

overview of the significant IT findings identified during the review and evaluation phase of the audit. 

The final testing portion of the testing phase is expected to begin October 21, 2013. 
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Office of Inspector General Semiannual Report to Congress

Office of Inspector’s General Review of 

Outstanding Recommendations as of June 

2013

Assignment Number: OIG-13-03

Status: Released August 2013

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

June2013OutstandingRecommendations.pdf

During this semiannual reporting period, the 

OIG released the Review of Outstanding 

Recommendations as of June 2013 report to the 

Commission detailing the follow-up work conducted 

by the OIG and the status of the outstanding OIG 

audit and inspection recommendations. The report 

covered six (6) OIG assignments totaling 114 outstanding recommendations contained in the following reports:

•	 Audit Follow-up Review of the FEC’s Employee 

Transit Benefit Program;

•	 Audit of the Commission’s Property 

Management Controls;

•	 Follow-up Audit of Privacy and Data Protection; 

•	 Follow-up Audit of Procurement and Contract 

Management; 

•	 Inspection of the FEC’s Kastle Key Program; 

and

•	 Quality Assessment Audit of the Audit Division

Based on the follow-up work performed, the OIG 

was able to collectively close 42 outstanding recommendations. In addition, the OIG closed six 

(6) additional recommendations from the Property 

Audit (2) and the Privacy Audit (4), in part because 

management has disagreed with these recommendations and made the decision not to apply the 

OIG Audit Follow-up Activity

resources necessary to fully or adequately implement corrective actions. In accordance with policy, 

the IG can decide to close recommendations or 

seek resolution from the Commission for recommendations where the OIG and management disagree. Although these six (6) recommendations 

were closed based on management’s decision to 

not implement the OIG’s recommendations, the OIG 

continues to believe the recommendations would improve operations; and agency management continues to be exposed to the potential risks associated 

with the respective findings. Therefore, the OIG continues to believe these six (6) recommendations are 

important and if implemented would reduce the risk 

of fraud, waste, or abuse. See Table III for a breakdown of outstanding recommendations (located on 

page 24).
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April 1, 2013 - September 30, 2013

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 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 

be closed with no further action taken, referred to 

management or another agency, or an investigation 

will be initiated. 

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 cannot be investigated and in many cases do not merit 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 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, four (4) 

new hotline complaints were opened and three (3) 

hotline complaints were closed. The OIG had four 

(4) open hotline complaints as of the close of the reporting period, including three (3) that were opened 

prior to the beginning of the reporting period. 

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. 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 with information about properly filing a complaint with OGC are sent to complainants 

alleging FECA violations, as the OIG cannot simply 

route FECA complaints to OGC. 

In other 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 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 has created a category for “hotline inquiries” that do not meet the criteria for 

hotline complaints. Hotline contacts that are misdirected complaints, facially unsubstantiated, meritless or invalid, and thus do not meet the criteria for 

 OIG Hotline Information
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Office of Inspector General Semiannual Report to Congress

classification as a hotline complaint, are categorized 

as “hotline inquires.” 

For this reporting period, the OIG received four (4) 

hotline inquiries. Three (3) hotline inquiries were referred or redirected to another FEC office, and one 

(1) was forwarded to another Federal OIG. 
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April 1, 2013 - September 30, 2013

OIG investigations seek out facts related to allegations of wrongdoing. OIG investigations may address administrative, civil, and criminal violations of 

laws and regulations. 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. 

Four (4) investigations were open at the end of the 

reporting period, including one (1) that was open at 

the beginning of the reporting period and three (3) 

that were opened during this reporting period. 

OIG Investigations
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Office of Inspector General Semiannual Report to Congress

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 compiled by the Commission’s 

Congressional Affairs Office is reviewed by the 

Inspector General. In addition, the Inspector 

General routinely reads all Commission agenda 

items. 

The Inspector General 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: 

•	 The OIG responded to two (2) Congressional 

inquiries – the first to Senators Grassley and 

Coburn, a biannual communication concerning 

any investigations, evaluations or audits that 

were not disclosed to the public by our office 

– there were none. The second to Chairman 

Issa and Ranking Member Cummings of the 

Committee on Oversight and Government 

Reform. The response included information requested by the committee on outstanding OIG 

audit recommendations. 

•	 OIG’s Annual Work Plan – the OIG sent out an 

agency-wide e-mail seeking input from FEC 

staff regarding any concerns and/or suggestions for audits. In addition, the OIG held its 

annual brainstorming session to discuss ideas 

for OIG audits and other oversight reviews. As 

a result of the OIG brainstorming session, the 

Annual Work Plan was created. The IG also 

developed an assignment spreadsheet that 

identifies OIG staff, their work assignments, 

and an at-a-glance visual of the estimated 

timeframe for each assignment.

•	 The OIG created the 2013 Documentation 

of Records Destroyed schedule to detail the 

2013 disposal schedule for OIG records. The 

schedule was submitted to the FEC’s Records 

Officer, and during this reporting period, records were disposed of as well as transferred 

to an off-site records retention center.

Additional OIG Activity
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April 1, 2013 - September 30, 2013

Council of the Inspectors General on 

Integrity and Efficiency (CIGIE) Activity

The Inspector General continues to serve as Vice 

Chair of the CIGIE. In this capacity, the IG supports the Chair, reviews various documents, attends 

weekly meetings with the Chair and CIGIE executive staff, and provides input into various issues that 

come before CIGIE. The IG also prepares for and 

participates in numerous conference calls with various government officials to discuss a broad range of 

topics affecting CIGIE and the federal government. 

The IG continues to be very involved in the 

Executive Council of the Council of the Inspectors 

General on Integrity and Efficiency (CIGIE). The 

Executive Council is composed of the Chair, Vice 

Chair, the past Vice Chair of the CIGIE, 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. The Council meets monthly to discuss issues that will affect CIGIE. 

The IG also serves as Chair of the Inspector 

General Recommendation Panel which receives 

resumes from those interested in presidentially or 

agency appointed inspector general positions. The 

panel reviews the resumes, along with a questionnaire all applicants are asked to complete, and forwards those applicants to the White House Office of 

Personnel that would appear to be qualified candidates for their consideration. The panel also provides assistance to those agencies that select their 

own IGs through their competitive process.

The IG participated and was involved in a variety 

of special projects and issues during the reporting period, to include: two (2) “Lunch with the IG” 

programs at American University; spoke to the 

GAO International Fellows about IGs; two (2) presentations on IGs and CIGIE – one to a group of 

journalists from Paul Miller Washington Reporting 

Fellowships and one to Brazilian officials; provided 

comments to the Executive Director of CIGIE on the 

FY 2012 Progress Report to the President; received 

and forwarded new IG candidate information to other 

members of the CIGIE panel; met with the Federal 

Co-Chair of the Denali Commission concerning 

IG issues contained in the Dodd-Frank Wall Street 

Reform and Consumer Protection Act. 
14

Office of Inspector General Semiannual Report to Congress

The table below indicates the total amount of contacts received by the Office of Inspector General for the 

past six months – April 1, 2013 through September 30, 2013.

These contacts were made through various sources such as telephone calls, e-mails, faxes, U.S. mail, and 

personal visits to the OIG.

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

4,914 22 4,870 22

OIG Contacts
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April 1, 2013 - September 30, 2013

List of Training, Meetings

and Conferences

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 April 1, 2013 – September 30, 2013:

MEETINGS:

Host / Sponsor Topic / Subject

Council of Inspectors General on Integrity

and Efficiency 

Weekly Chair/Vice Chair Meetings

Monthly Meetings

Monthly Executive Council Meetings

Special Executive Council Meeting

Professional Development Committee's Leadership 

Development Subcommittee Meetings

Media Counsel Meeting

CIGIE/GAO Annual Financial Statement Conference

Council of Counsels to the Inspectors General Monthly Meetings

Small OIG Working Group Meeting

Assistant Inspector General for Investigations Quarterly Meetings

Financial Statement Audit Network Monthly Meetings

Federal Audit Executive Council Bi-monthly Meetings

Federal Election Commission

Bi-monthy Director’s Meetings

Finance Committee Meetings

Managers' Meeting

Administrative Liaison Group Meeting

FEC / Office of Inspector General Bi-weekly Staff Meetings
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Office of Inspector General Semiannual Report to Congress

TRAINING/CONFERENCES:

Host / Sponsor Topic / Subject

Council of Inspectors General

on Integrity and Efficiency

CIGIE/GAO Annual Financial Statement Conference

CIGIE/OPM – HR Evaluator Training

IG Conference

Citizens Engagement Seminar

Lincoln Leadership Training - A Transformational Journey 

from Gettysburg

Federal Audit Executive Council Specific Challenges for Performing Oversight / Challenges of 

Smaller OIGs 

Institute of Internal Auditors Personality Risk Profiles of Procurement Personnel

Treasury Inspector General for Tax 

Administration

TeamMate – OIGs Electronic Audit Workpaper Software

(2 sessions)

TeamMate User Forum 2013 TeamMate Conference

Association of Government Accountants AGA 62nd Annual Professional Development Conference – 

Big Challenges Bigger Thinking

FCW Executive Briefings Detecting and Preventing Wasteful and Improper Payments

USDA Graduate School Introduction to Government Contracting

Regional Computer Forensics Group Computer Forensics Training

Federal Election Commission

Active Client

Windows 7

Lotus Notes 8.5.3

Adobe’

TeamMate 10

IT Security Awareness Training

No Fear Training

Labor Management Agreement Training

Social Security Retirement Planning Seminar

How to Advance your Federal Career (OPM Webcast)

National Seminars / Skillpath

Leading the Way – Managing Change in the Workplace

Public Speaking without Fear

How to Manage Priorities & Time
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April 1, 2013 - September 30, 2013

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 12

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) 20

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 6

Section 5(a)(8) Questioned and Unsupported Costs (Table I) 18

Section 5(a)(9) Recommendations that Funds be put to Better Use (Table II) 19

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
18

Office of Inspector General Semiannual Report to Congress

Table I

INSPECTOR GENERAL ISSUED REPORTS WITH QUESTIONED COSTS

(DOLLAR VALUE IN THOUSANDS)

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
19

April 1, 2013 - September 30, 2013

Table II

INSPECTOR GENERAL ISSUED REPORTS WITH RECOMMENDATIONS THAT 

FUNDS BE PUT TO BETTER USE

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
20

Office of Inspector General Semiannual Report to Congress

Table III

SUMMARY OF AUDIT REPORTS WITH CORRECTIVE ACTIONS OUTSTANDING FOR 

MORE THAN SIX MONTHS

Recommendations

Report Title Report 

Number

Issue 

Date

Number Closed Open

Audit Follow-up Review of the FEC’s Employee 

Transit Benefit Program

OIG-08-03 07/09 51 43 8

Audit of the Commission’s Property Management 

Controls 

OIG-09-02 03/10 36 29 7

Federal Election2 Commission 2012 Financial 

Statement Audit

OIG-12-03 11/12 32 0 32

2010 Follow-up Audit3 of Procurement and 

Contract Management

OIG-10-02 06/11 29 12 17

2010 Follow-up Audit4 of Privacy and Data 

Protection

OIG-10-03 03/11 45 15 30

Inspection of the Federal Election Commission’s 

Kastle Key Program

OIG-11-02 12/11 15 14 1

Quality Assessment Audit of the FEC’s Audit 

Division

OIG-12-01 09/12 11 8 3

Inspection of the Federal Election Commission’s 

Disaster Recovery Plan and Continuity of 

Operations Plans

OIG-12-06 01/13 30 0 30

Cumulative Total of Outstanding Recommendations 128

2 Follow-up on the 20 open recommendations will be a part of the FEC’s 2012 Financial Statement Audit.

3 The 29 open recommendations include 12 of the 15 recommendations from the 2008 Procurement and Contract Management 

Performance Audit, OIG-08-02. Three recommendations were closed from the 2008 audit.

4 The 45 open recommendations include 16 of the 19 recommendations from the 2006 Inspection Report on Personally Identifiable 

Information, OIG-06-04, and 2007 Performance Audit of Privacy and Data Protection, OIG-07-02. In total, three recommendations were 

closed from the 2006 inspection and 2007 audit.
21

April 1, 2013 - September 30, 2013

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 re¬ports (SAR) 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 

outstand¬ing and not fully implemented recommendations the OIG made in any peer review it performed for 

an¬other OIG.

Inspectors General conduct audits in accordance with generally accepted government auditing standards 

(GAGAS). Audit organizations conducting audits in accordance with GAGAS are required to have an independent peer review every three years. The objective of the peer review program is to ensure an audit organization’s internal quality control system adequately provides reasonable assurance that applicable auditing standards, policies, and procedures are being followed

The FEC OIG conducted a peer review of the National Endowment for the Humanties Office of Inspector 

General during this reporting period. The peer review entrance conference was held on June 12, 2013; and 

fieldwork was performed August 1 through 29, 2013. Following the completion of the fieldwork, the FEC peer 

review team held a discussion meeting with the NEH IG and staff on August 29, 2013 to communicate the preliminary findings noted during the peer review. 

The exit conference was held on September 19, 2013 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 and comment letter was provided to NEH OIG on September 26, 2013. The NEH OIG provided 

an official written response to the FEC OIG on September 30, 2013. The NEH 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 NEH OIG on September 30, 2013 (OIG-13-04). The final peer review 

report contained one (1) suggested recommendation for NEH OIG to improve their system of quality control. 

The OIG recently passed its first 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 September 23, 2013, SEC’s Inspector General 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. 

Appendix A: Peer Review Resul
22

Office of Inspector General Semiannual Report to Congress

This Page Intentionally Left Blank
April 1, 2013 - September 30, 2013

23

Federal Election Commission

Office of Inspector General 

Fiscal Year 2014

Work Plan

Lynne A. McFarland

Inspector General

Appendix B: 
Office of Inspector General Semiannual Report to Congress

24

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 2014 Work Plan-------------------------------------------------------------------- 6

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

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

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

Attachment

FEC / OIG Strategic Plan – Fiscal Years 2010 - 2015
April 1, 2013 - September 30, 2013

25

1

 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) 2014 Annual Work Plan. This work plan includes a description of audit, 

inspections, investigative and special projects planned for FY 2014. The plan also sets 

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

and resources for FY 2014. 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 2013 in the audit and 

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

process spanning fiscal years 2013 and 2014. Among the audits completed in FY 2013

were the Audit of the FEC’s Fiscal Year 2012 Financial Statements, and the Audit of the 

FEC’s Office of Human Resources. In addition to these audits, the OIG also contracted 

with an independent public accounting firm to conduct an inspection of the FEC’s 

disaster recovery plan and continuity of operations plans. These audits and the 

inspection yielded numerous recommendations improve FEC operations. The OIG also 

devoted resources this past FY to audit follow-up with the goal of closing outstanding 

Inspector General recommendations.

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

program accomplished much of the work planned for 2013, to include responding to 

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

service, among other projects. In 2013, my office also voluntarily participated in a 

relatively new program to have the office’s investigative program peer reviewed. The 

peer review is an independent assessment of the effectiveness of the office’s investigative 

program and is conducted by another OIG. The review provides reasonable assurance on 

whether the office is adhering to applicable investigative standards and policies. I am 

pleased to report that in late September 2013 my office received a “compliant” peer 

review rating, also known as an unqualified clean opinion, from the Securities and 

Exchange Commission 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 (CIGIE) Professional Development 

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

the IG Council of Counsels, among others. I also assumed the role of Vice Chair of CIGIE

starting in fiscal year 2013. At the start of FY 2014, the OIG is fully staffed with six 

professional staff members, and therefore, I anticipate the OIG will successfully complete

the FY 2014 work plan that follows. 
Office of Inspector General Semiannual Report to Congress

26

2

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.” 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 

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 21, 2013
April 1, 2013 - September 30, 2013

27

3

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 four sitting Commissioners – Chair Ellen L. 

Weintraub; and Commissioners Caroline C. Hunter, Matthew S. Petersen and Steven T. 

Walther. On September 23, 2013, the U.S. Senate confirmed two new members to the 

Commission, Ann Ravel and Lee Goodman. As a result, the agency will soon have a fullcompliment of six Commissioners serving on the Commission.

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 2014 was $ 1,110,500, 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.
Office of Inspector General Semiannual Report to Congress

28

4

Exhibit 1: FEC - OIG Organizational Chart

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 promotes 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. 

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
April 1, 2013 - September 30, 2013

29

5

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 2013, the OIG conducted our 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.
Office of Inspector General Semiannual Report to Congress

30

6

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 2014 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 2014, the following assignments are planned:

1. Audit of the Federal Election Commission’s 2013 and 2014 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 fiscal year 2013 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.

The OIG’s contract with Leon Snead & Company ends at the completion of the FY 

2013 audit. Therefore, the OIG will devote resources in late calendar year 2013 to 

solicit and review bids to award a new audit contract for future years.

Planned period of audit: May 2013 – November 2013;

May 2014 – November 2014.
April 1, 2013 - September 30, 2013

31

7

2. Audit of the Federal Election Commission’s Civil Penalties Program.

The OIG will conduct an audit of the FEC’s Civil Penalties Program. The Federal 

Election Campaign Act (FECA) of 1971, as amended, created the FEC, and also 

established civil penalties for violations of FECA and other statutes within the 

Commission’s jurisdiction. The OIG audit objectives will determine whether the 

program is being administered by the agency in accordance with federal law, 

regulations, and FEC policies and procedures. The OIG will also assess the internal 

controls over the program and provide recommendations to management, if 

warranted. 

Planned period of audit: April – July 2014.

3. 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 2014, 

there were numerous outstanding recommendations representing five audits and 

two inspections. On-going audit follow-up during FY 2014 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 2014. 
Office of Inspector General Semiannual Report to Congress

32

8

4. Audit Peer Review.

The OIG will be peer reviewed by another OIG during FY 2014 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: First half of fiscal year 2014. 

5. Limited Scope Inspections.

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

inspections of FEC programs during FY 2014. 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 a prior period and is expected to be completed by March 2014. 

o Planning for an inspection on the FEC’s compliance with the Federal 

Managers’ Financial Integrity Act (FMFIA) has begun and the inspection is 

planned for the first quarter of fiscal year 2014. 

o Another inspection is planned for the first half of FY 2014 on the financial 

management services received by the FEC from the General Services 

Administration line of business. 

o Additional inspections on the FEC’s off-site records storage, travel/purchase 

cards, and information technology security may be performed, time 

permitting.

6. Additional Work Assignments. 

Additional work assignments may be undertaken during FY 2014 based on 

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

Priorities may be adjusted to reflect emerging issues during the FY.
April 1, 2013 - September 30, 2013

33

9

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 2014, 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. 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. The OIG plans to provide fraud briefings to 

contractor personnel in FY 2014. 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.
Office of Inspector General Semiannual Report to Congress

34

10

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 2014. 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 2014, 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. 

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.
April 1, 2013 - September 30, 2013

35

11
 

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