Federal Election Commission 

Office of Inspector General 

Fiscal Year 2010 

Work Plan

Lynne A. McFarland 

Inspector General
 TABLE OF CONTENTS

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

The Federal Election Commission--------------------------------------------------- 2 

Office of Inspector General------------------------------------------------------------ 2 

OIG Strategic Planning----------------------------------------------------------------- 3 

Annual Planning Methodology and Strategies---------------------------------- 4 

OIG 2010 Work Plan-------------------------------------------------------------------- 5 

 Audits/Inspections/Reviews-------------------------------------------------- 5 

 

 Investigative Program--------------------------------------------------------- 8 

 Special Projects------------------------------------------------------------------ 9 
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) 2010 Annual Work Plan. This work plan includes a 

description of audit, investigative and special projects planned for the fiscal year. 

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

and managing its workload and resources for FY 2010. 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 U.S. Federal Election Commission’s (FEC) mission 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. 

I am also committed to ensuring effective lines of communication with the 

Commission regarding OIG work activities and issues of concern and importance to 

the Commission. Information on OIG work activity will be reported to the 

Commission in quarterly reports and also in the OIG’s Semiannual Reports to 

Congress. 

Lynne A. McFarland 

Inspector General 

Federal Election Commission 

October 1, 2009
2 

The Federal Election Commission 

In 1975, Congress created the Federal Election Commission (FEC) to 

administer and enforce the Federal Election Campaign Act (FECA). The duties of 

the FEC, an independent regulatory agency, are to disclose campaign finance 

information; enforce the provisions of the law; and oversee the public funding of 

Presidential elections. 

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

President and confirmed by the Senate. Each member serves a six-year term, and 

two seats are subject to appointment every two years. By law, no more than three 

Commissioners can be members of the same political party, and at least four votes 

are required for any official Commission action. The Chairmanship of the 

Commission rotates among the members each year, with no member serving as 

Chairman more than once during his or her term. Currently the FEC has a full 

complement of Commissioners – Steven T. Walther; Matthew S. Petersen; Cynthia 

L. Bauerly; Caroline C. Hunter; Donald F. McGahn, II; and Ellen L. Weintraub.

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 fiscal year 2010 is 

$1,116,762 to cover salaries and related expenses for six staff members, to include 

audit contracts and training. Exhibit 1 on the following page contains the OIG’s 

organizational chart. 
3 

Exhibit 1: FEC - OIG Organizational Chart

Lynne A. McFarland

Inspector General

J. Cameron Thurber

Counsel to the IG

Chief Investigator

Irene Porter

Sr. Auditor

Mia Forgy

Staff Auditor

Jon Hatfield

Deputy Inspector General

Dorothy Maddox-Holland

Special Assistant to the

Inpsector General

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, in 2005 the 

OIG updated our strategic plan covering the period 2005 through 2010. Three 

major categories of OIG-wide goals and objectives were identified, which are as 

follows: 

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

change in FEC policies, programs, and operations. 

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

procedures to ensure the most effective and appropriate use of OIG resources 

in support of our people and products. 

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

environment that fosters accountability, communications, teamwork, and 

personal and professional growth. 
4 

In addition, strategies and performance measures for each objective are 

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

audits includes using feedback from stakeholder surveys to continually improve the 

OIG’s audit process. At the conclusion of each audit/inspection/review, the OIG 

distributes a stakeholder survey to the program officials to solicit their feedback on 

the usefulness of the completed audit and their overall satisfaction with the audit 

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 that we have adopted is built around the OIG staff 

brainstorming sessions held annually each summer, as well as soliciting and 

receiving feedback and ideas from stakeholders throughout the year. The annual 

work plans 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 2009, the 

OIG conducted our second annual all-day brainstorming session. Similar to 2008, 

the ideas and suggestions generated from the brainstorming session were separated 

into categories to include audits, projects and inspections, and then ranked (i.e., 

high, medium and low) according to priority. 

In anticipation of the OIG annual brainstorming sessions, the OIG sends an 

e-mail to all FEC staff seeking input in formulating the OIG’s work plans. 

Historically, the OIG receives useful audit suggestions from FEC staff which are 

then considered during the annual planning process. 

The OIG planning process is 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 OIG; and (8) the adequacy of 

internal control systems in place for the program or other factors. 
5 

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

plan is divided into three primary categories: 

(1) Audits/Inspections/Reviews; 

(2) Investigative Program; and 

(3) Special Projects. 

OIG 2010 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 2010, the following audit related assignments are planned:

1. Audit of the Federal Election Commission’s 2009 and 2010 Financial 

Statements. 

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

required to prepare annual financial statements in accordance with Office of 

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

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

requires the FEC Inspector General, or an independent external auditor 

selected by the IG, to audit the agency financial statements.

We will oversee the audit conducted by the OIG’s independent public 

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

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

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

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

with Government Auditing Standards, and OMB Bulletin No. 07-04, Audit 

Requirements for Federal Financial Statements, as revised; and 5) other 

procedures the OIG deems necessary to oversee the contract and audit. 

Planned period of audit: May 2009 – November 2009; 

May 2010 – November 2010. 
6 

2. Audit of the Federal Election Commission’s Property Management 

Controls. 

We will conduct an audit of the controls over FEC property, to include 

Blackberry/cellular telephones, FEC vehicles and fleet/fuel charge cards. The 

scope of this audit will include a review of Commission internal controls over 

FEC property from fiscal year (FY) 2007 to present. The audit will assess the 

adequacy of: (1) policies and procedures for managing the assets; (2) business 

processes used to manage the assets; and (3) management control activities 

used to detect and correct potential fraud, waste and abuse of the assets. The 

OIG will also conduct detailed testing of asset use to determine whether 

employees complied with FEC policies and procedures. 

Planned period of audit: September – November 2009. 

3. Audit Follow-up of the OIG’s 2007 Performance Audit of Privacy and 

Data Protection. 

We will conduct an audit follow-up of the 2007 audit of privacy and data 

protection, an audit conducted by an independent public accounting firm on 

behalf of the OIG. 

In 2007, the OIG contracted with Cotton & Company, LLP to conduct a 

performance audit of privacy and data protection policies and procedures and, 

specifically, to determine whether the FEC is adequately protecting 

personally identifiable information (PII). The auditors reported seven 

separate findings and provided thirteen recommendations for improving 

privacy practices at the FEC. The purpose of the audit follow-up will be to 

determine whether FEC management has taken adequate steps to implement 

agreed upon actions on OIG recommendations contained in the 2007 audit 

report. 

Planned period of audit: Early 2010. 

4. Audit Peer Review. 

The OIG will conduct an audit peer review of the Commodity Futures 

Trading Commission OIG 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. The FEC OIG is scheduled 

to be peer reviewed in FY 2011. 

Planned period of review: May – June 2010. 
7 

5. Audit Policies and Procedures Manual. 

The OIG’s current audit policies and procedures manual will be updated and 

finalized during the fiscal year to reflect changes in auditing standards and 

changes in the OIG’s audit environment, to include the use of electronic 

working papers. 

6. Additional Work Assignments. The following additional assignments 

may be undertaken during fiscal year 2010 based on available OIG 

resources, timing of management’s implementation of audit 

recommendations, benefit to the agency and other relevant factors. 

Priorities may be adjusted to reflect emerging issues during the 

fiscal year. 

a. Inspection of the FEC’s Employee/Contractor Background Investigation 

Program. 

b. Audit Follow-up of the OIG’s Transit Benefit Program Audit. 

c. Audit Follow-up of the OIG’s 2009 Procurement and Contract 

Management Audit. 

d. Inspection of the FEC’s Occupant Emergency Program. 

e. Audit of the FEC’s Physical Security / Protection of FEC Records. 

f. Audit of the FEC’s Training Program. 

g. Audit of the FEC’s Debt Collection / Civil Penalties Program. 
8 

INVESTIGATIVE PROGRAM 

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

programs and operations by identifying and investigating allegations of fraud, 

waste, abuse and misconduct leading to criminal, civil, and administrative penalties 

and recoveries. Investigations typically originate as hotline complaints and may 

result in formal investigations if the OIG believes an investigation is warranted. 

The OIG’s investigative program also provides for initiatives designed to monitor 

specific high-risk areas within FEC programs and operations in order to proactively 

identify vulnerabilities in order to prevent fraud, waste and abuse. 

For Fiscal Year 2010, the following investigative assignments are planned:

1. Manage Hotline Complaints and Investigation Caseload. 

We will respond to hotline complaints during the fiscal year and report in a 

timely manner to the appropriate officials on the resolution of hotline 

complaints and investigations. 

2. Outsource OIG Hotline. 

During the fiscal year, the OIG is planning to contract with a vendor to provide 

a hotline service. Hotline complaints and investigations will continue to be 

handled by OIG staff, however, the outsourced OIG hotline will provide FEC 

employees, contractors and interested parties with an additional mechanism to 

submit complaints of fraud, waste, abuse and misconduct to the OIG. 

3. Investigations Manual. 

The OIG plans to update and finalize the OIG’s investigations manual during 

the fiscal year. 

4. 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 plans to 

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

initiatives to prevent fraud, waste, abuse and misconduct. 
9 

5. Outreach. 

During the fiscal year, the OIG will conduct fraud awareness and OIG 

briefings with division management and staff. The fraud briefings are 

intended to educate FEC staff about the potential for fraud in FEC programs, 

such as travel, workers’ compensation, time and attendance, and government 

charge card activity. Discussion and education on fraud will help employees 

to identify and report suspected fraud and help reduce the number of fraud 

cases. In addition, the OIG will continue the new employee orientation 

program to meet with all new employees to discuss the purpose and mission 

of the OIG. Lastly, the OIG will review and revise, as necessary, the OIG’s 

FECNet (intranet) site, public Web site, OIG brochure, fraud poster, and 

other outreach initiatives. 

SPECIAL PROJECTS 

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

be responsible for numerous additional projects and activities during fiscal year 

2010. 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 fiscal 

year and the OIG will prioritize our workload to respond to the additional 

requirements. 

For Fiscal Year 2010, the following special projects and activities are planned:

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: CIGIE; Executive Council of CIGIE; 

CIGIE Professional Development Committee; IG Candidate 

Recommendations Panel Committee; IG Council of Counsels; Assistant 

Inspector General for Investigations; Federal Audit Executive Council; and 

Financial Statement Audit Network Group. 
10 

In addition to CIGIE professional working group meetings, the Inspector 

General or staff will regularly attend FEC weekly senior level meetings, and 

quarterly management and FEC town-hall meetings during the fiscal year. 

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 and conferences during the fiscal year to 

maintain and improve their knowledge, skills and abilities. 

4. Audit Follow-up Tracking Database. 

The OIG will complete and implement the OIG’s new audit follow-up tracking 

database during fiscal year 2010. In partnership with the FEC’s Information 

Technology Division, the OIG is developing the database to assist the FEC to 

adhere to the requirements of the Office of Management and Budget’s 

Circular A-50, Audit Followup, September 29, 1982. The audit follow-up 

database will be an important tool for the Commission, management, 

program officials and OIG to monitor and track the status and 

implementation of audit recommendations by the OIG, Government 

Accountability Office, Office of Personnel Management, and other oversight 

bodies.
FEC / OIG Strategic Plan - Fiscal Years 2005 - 2010

OIG Products: To provide products and

services that promote positive change in

FEC policies, programs, and operations.

OIG Process: To develop and implement

processes, policies, and procedures to ensure

the most effective and appropriate use of OIG

resources in support of our people and products.

Objective A: Deliver timely, high-quality

products and services that promote

positive change.

Strategy:

- establish common OIG standards for communicating

results;

- conduct quality assurance programs;

- solicit appropriate internal and external review and

comment;

- comply with applicable statutory guidelines and

standards;

- set realistic and appropriate milestones.

Objective B: Address priority issues and

concerns of the Commission,

Management, and Congress.

Strategy: Perform work that supports;

- Federal Election Commission and Congressional

priorities;

- Strategic Management Initiative efforts;

Focus OIG attention in the following areas of emphasis:

- managing change;

- resource allocation in relation to policy objectives;

- delivery of client service;

- causes of fraud and inefficiency; and,

- automation and communication.

OIG Staff: To maintain a skilled and motivated

work force in an environment that fosters

accountability, communications, teamwork, and

personal and professional growth.

Objective A: Maintain a dynamic strategic

planning process.

Strategy:

- periodically review and update the strategic plan to

address changing OIG and FEC priorities; and,

- identify factors that influence organizational change and

develop short and long term plans to address them.

Objective A: Attract and retain well-qualified,

diverse and motivated employees.

Strategy:

- develop and implement a comprehensive recruiting program

that attracts a broad population with the knowledge, skills,

abilities, and expertise necessary to make meaningful

contributions to the OIG;

- assess employee satisfaction and develop strategies to address

employee concerns;

- identify reasons for staff departures and develop plans to foster

greater staff retention; and,

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

force.

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

and results in positive change.

Strategy:

- solicit FEC and Congressional input in planning OIG

activities;

- develop internal planning mechanisms to support FEC

goals and priorities;

- ensure that priorities of IG are effectively communicated;

and,

- identify specific targets for OIG review that are the most

cost-effective

Objective B: Provide training and developmental

opportunities to employees.

Strategy:

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

office needs as well;

- ensure that Government Auditing Standards in relation to

training are adhered to; and,

- maintain a reporting system to ensure that educational

requirements are met.

Objective C: Follow-up and evaluate

results of OIG products and services to

assess their effectiveness in promoting

positive change.

Strategy:

- Identify, as appropriate, lessons learned to improve

timeliness and quality; and,

- conduct follow-up reviews to determine if intended

results have been achieved.

Objective D: Satisfy customers,

consistent with the independent nature of

the OIG.

Strategy:

- establish professional communication and interaction

with customers to promote the open exchange of ideas;

- incorporate customer feedback, as appropriate; and,

- be open to customer-generated solutions and

options.

Objective C: Identify customer needs and

provide products and services to meet

them.

Strategy:

- establish new customer feed back mechanisms;

- consider and evaluate customers feedback when

planning and developing products and services;

- respond to Congressional inquires and request for

briefing and testimony;

- promote open exchange of ideas and information through

outreach and through use of e-mail; and,

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

information received through the OIG hotline and other

sources.

Objective D: Implement efficient, effective,

and consistent resolution and follow-up

procedures.

Strategy:

- ensure that IG follow-up procedures are followed and that

management is aware of their role in the process;

- establish common OIG standards for terminology, date

maintenance and communications.

Objective E: Establish a positive and

productive working environment.

Strategy:

- reengineer or streamline OIG procedures to achieve the

most effective use of resources; and,

- ensure that necessary technologies, evolving and

otherwise, are made available to staff as needed.

Objective C: Assess, recognize, and reward,

when possible, performance that contributes to

achieving the OIG mission.

Strategy:

- develop and articulate expectations for each employee's

performance, including contributions in meeting the mission &

goals of the OIG; and,

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

exceptional employee performance.

Objective D: Create and maintain a working

environment that promotes teamwork and

effective communication.

Strategy:

- ensure that communication between employees is open;

- provide employees with the tools and incentives they need to

adequately perform their duties.

Performance Measures: Determine the

timeliness and quality of products and

services; their effectiveness in promoting

positive change; and, reach agreement

with management on at least 90% of

recommendations within six months of

the report issue date.

Performance Measures: An annual audit

plan is issued; strategic plan is periodically

reviewed; and, necessary technology is

provided to staff to enable them to most

efficiently perform their duties.

Performance Measures: All employees meet

the training requirements; all employees have

performance standards; and all employees meet

the basic requirements for the position in which

they were hired to perform.