OFFICE OF

INSPECTOR GENERAL

Semiannual Report to Congress

October 1, 2000 - March 31, 2001

Federal Election Commission

999 E Street, N.W.

Suite 940

Washington, D.C. 20463

202-694-1015

Toll-Free: 1-800-424-9530

e-mail address: oig@fec.gov

website address: http://www.fec.gov/fecig.htm

May 2001
TABLE OF CONTENTS 

SUBJECT PAGE 

EXECUTIVE SUMMARY......................................................... 1

FEDERAL ELECTION COMMISSION.................................... 7

AUDITS................................................................................... 10

AUDIT FOLLOW-UP.............................................................. 12

INSPECTIONS....................................................................... 15

INVESTIGATIONS.................................................................. 19

ADDITIONAL OFFICE OF INSPECTOR GENERAL

ACTIVITY......................................................................... 20

ECIE AND PCIE ACTIVITY..................................................... 26

REPORTING REQUIREMENTS.............................................. 28

TABLE I - QUESTIONED COSTS........................................... 29

TABLE II - FUNDS PUT TO BETTER USE............................. 30

TABLE III - SUMMARY OF AUDIT REPORTS WITH

CORRECTIVE ACTIONS OUTSTANDING

FOR MORE THAN SIX MONTHS....................... 31

FEC/OIG STRATEGIC PLAN................................................... 32

CONTACTING THE OFFICE OF INSPECTOR

GENERAL.......................................................................... 33

October 1, 2000 - March 31, 2001 
EXECUTIVE SUMMARY 

This report is submitted pursuant to the Inspector General Act of 1978, 

as amended. This Executive Summary provides a brief synopsis of 

accomplishments and general activities pertaining to the Office of Inspector 

General (OIG) for the period October 1, 2000 through March 31, 2001. 

During this semiannual reporting period, the Office of Inspector 

General continued to work on the audit entitled, Procurement Operations 

(OIG-00-03). The primary objectives of this audit are to 1) determine 

whether or not the FEC has an efficient and effective procurement system in 

place; and 2) determine whether the FEC’s procurement process complies 

with statutory and regulatory requirements. The audit is being conducted to 

see if the Commission has implemented the key acquisition reforms contained 

in the Federal Acquisition Streamlining Act (FASA) of 1994. 

In order to achieve the audit objectives, steps taken to complete the 

audit have included reviewing records and selecting the audit sample. 

Additional information regarding this audit is located on page 10, the Audit 

section of this report. 

The Office of Inspector General released one follow-up report during 

this reporting period. The original audit report entitled, Review of 

October 1, 2000 - March 31, 2001 Page 1 
Commission’s Employee Appraisal Process (OIG-97-02), was released 

January, 1998. The primary objectives of the audit were to 1) determine 

whether the Commission’s Employee Appraisal Process was in compliance 

with applicable Federal regulations and Commission Personnel instructions; 

and 2) determine whether the Commission’s monetary incentive process was 

in compliance with applicable Federal regulations and Commission Personnel 

instructions. The original report contained four audit recommendations. 

Three recommendations have been closed during previous reporting periods. 

After completion of the follow-up work, the OIG determined that the 

Personnel Office has taken sufficient steps to address the weaknesses 

identified in our audit report. All four recommendations have been addressed 

by management and are now closed. The Audit Follow-up section, located 

on page 12, contains further information regarding this report. 

During this reporting period, the OIG began work on three 

inspections. The first one entitled, Inspection of the Commission’s Web 

Site Privacy Practices (OIG-01-02), was in response to a statutory 

requirement with regards to Section 646 of the Treasury and General 

Government Appropriations Act 2001, which requires each Federal Inspector 

General to report to Congress on Agency practices/policies with respect to 

personally identifiable information collected via the agencies’ Web site. 

October 1, 2000 - March 31, 2001 Page 2 
Actions taken to assist in completing the inspection include meeting 

with FEC management and conducting tests to determine whether the FEC’s 

Web site uses Internet cookies or Web bugs. Significant information 

pertaining to this inspection is located on page 15, the Inspections section of 

this report. 

The second inspection entitled, Inspection of the Commission’s 

Compliance with the Federal Managers Financial Integrity Act 

(FMFIA) of 1982 (OIG-01-03), is being conducted to determine whether or 

not the FEC is in compliance with the FMFIA Act of 1982. 

An inspection guide was developed using information obtained during 

the research phase of the inspection. Meetings were conducted with the 

FMFIA program manager, who is responsible for preparing the annual 

assurance statement to the President. Information received from 

management has been reviewed and analyzed. Further details regarding this 

inspection can be found on page 16, the section entitled Inspections. 

The OIG is also conducting an inspection of the FEC’s Westlaw 

Service entitled Inspection of the Commission’s Westlaw Database 

Service (OIG-01-05). The Westlaw service provides commission staff with 

on-line research information and is administered by the FEC library. 

October 1, 2000 - March 31, 2001 Page 3 
Located on page 18, the Inspections section of this report, is more 

information relating to this topic. 

Listed below are highlights of additional activities conducted by the 

Office of Inspector General during this reporting period. Items are described 

in greater detail, starting on page 20, the section entitled Additional Office 

of Inspector General Activity. 

• Congress enacted the Omnibus Consolidated Appropriation Act on 

December 21, 2000. There was a requirement included in the Act 

that stated each Federal Inspector General provide quarterly 

reports to the Committees on Appropriations analyzing the 

promptness of payment for water and sanitary sewer services 

received by Federal agencies from the District of Columbia Water 

and Sewer Authority (WASA). After further research, we 

concluded that the reporting requirement does not apply to our 

office. The Senate and House Appropriations Committees were 

notified of our findings. 

• The OIG responded to a request from the Chairman of the 

Committee on Government Reform regarding recovery auditing. 

The Chairman requested that each Office of Inspector General 

provide significant examples of instances where their agency has 

October 1, 2000 - March 31, 2001 Page 4 
overpaid or not been credited properly on a contract for goods and 

services. 

Our response indicated that the OIG did not have any significant 

instances where the FEC has overpaid or has not been credited 

properly on a contract for goods or services within the past three to 

five years. 

• The OIG also responded to an issue raised by the FEC’s Personnel 

Director, with respect to Federal law, regulations, and other 

guidance applicable to the safeguarding of Commission property, 

specifically laptop computers. 

• The Data Systems Development Division (DSDD), asked the OIG 

to attend and provide comments on a training program being 

developed by DSDD on information systems security. The training 

will eventually be presented to all Commission staff. 

• Also during this reporting period, the OIG provided comments on 

the President’s Council on Integrity and Efficiency/Executive 

Council on Integrity and Efficiency’s (PCIE/ECIE) Strategic Plan. 

Suggestions provided by the OIG focused on projects that may be 

beneficial for the OIG community to undertake. These suggestions 

October 1, 2000 - March 31, 2001 Page 5 
were forwarded to the PCIE/ECIE Strategic Plan Committee for 

their consideration. 

• Given the amount of publicity aimed at the Florida election, during 

this reporting period, the OIG received over 400 inquiries regarding 

the Presidential voting procedures in Florida. 

A staff member responded to the inquiries with a brief reply that 

stated their correspondence had been forwarded to the FEC’s Office 

of Election Administration. 

• The Special Assistant to the Inspector General is assigned to 

conduct quarterly cash counts of the Agency’s imprest fund. Three 

cash counts were performed during this reporting period (OIG-00-

07, OIG-01-01 and OIG-01-04). 

October 1, 2000 - March 31, 2001 Page 6 
THE FEDERAL ELECTION COMMISSION 

The Federal Election Commission (FEC) is an independent, 

regulatory agency responsible for administering and implementing the 

Federal Election Campaign Act (FECA). The FEC is composed of six 

Commissioners who are appointed for six year terms by the President of the 

United States, with the advice and consent of the Senate. The FECA 

likewise established the positions of Staff Director and General Counsel, who 

are appointed by the Commissioners. 

During this reporting period, the Commission elected Danny L. 

McDonald to be its Chairman and David M. Mason to be its Vice Chairman. 

Currently, the FEC has a full compliment of Commissioners. 

OFFICE OF INSPECTOR GENERAL 

The Federal Election Commission is one of the thirty-three designated 

agencies required to have an Inspector General under the 1988 amendments 

to the Inspector General Act of 1978 (P.L. 100-504). 

The responsibilities of the Inspector General as stated in P.L. 100-504 

are as follows: 

October 1, 2000 - March 31, 2001 Page 7 
• conduct and supervise audits and investigations relating to 

the Federal Election Commission’s programs and operations; 

• provide leadership, coordination, and to recommend policies 

for activities designed to promote economy, efficiency and 

effectiveness in the administration of Commission programs 

and operations. To prevent and detect fraud, waste and 

abuse in these programs and operations, and; 

• keep the Commissioners and Congress fully and currently 

informed about problems and deficiencies and the need for 

and progress of corrective actions. 

The OIG is under the supervision of the Inspector General who 

provides overall direction to the staff. One of the two OIG auditors resigned 

in November, 2000 which left the OIG at 50% of its auditing capability for 

half of the reporting period. A new auditor was hired in February, 2001 

bringing the OIG to its full compliment of four full time employees. The staff 

consists of the Inspector General, the Special Assistant to the Inspector 

General and two Senior Auditors. 

In FY’01, the Inspector General requested an additional auditor 

position. At the request of the FEC’s Finance Committee, the Inspector 

October 1, 2000 - March 31, 2001 Page 8 
General researched the feasibility of using contracting services instead of 

receiving an additional staff position. A conclusion was reached that the use 

of contracting funds was a reasonable alternative to the additional position. 

$65,000 in contracting funds was requested for FY’01. When the FY’01 

management plan was developed a request for $65,000 was again made, with 

the understanding that the minimum amount needed for contracting was 

$30,000. No contracting funds were able to be provided to the OIG for FY’01. 

For the FY’02 Budget, the IG requested an upgrade of one auditor position 

and $65,000 in contract funds. 

October 1, 2000 - March 31, 2001 Page 9 
AUDITS 

TITLE: Procurement Operations

ASSIGNMENT #: OIG-00-03

RELEASE DATE: In Progress

PURPOSE: The primary objectives of this audit are to 1)

determine whether or not the FEC has an efficient and effective procurement

system in place; and 2) determine whether the FEC’s procurement process

complies with statutory and regulatory requirements.

The audit is being performed to determine if the Commission has 

implemented the key acquisition reforms contained in the Federal 

Acquisition Streamlining Act (FASA) of 1994. The audit will include 

soliciting feedback from Commission divisions on the positive and negative 

aspects of the Commission’s process to purchase goods and services. The OIG 

is also interested in knowing if the goods and services are delivered in a 

timely manner; would written guidelines on how to order goods and services 

be helpful; and is there a need for additional staff training to address the 

procedures for acquiring goods and services. 

October 1, 2000 - March 31, 2001 Page 10 
Audits (continued) 

Steps taken to complete the audit have included conducting interviews, 

reviewing records, and selecting the audit sample. Review of the audit 

sample has started and is continuing. 

October 1, 2000 - March 31, 2001 Page 11
AUDIT FOLLOW-UP 

TITLE: Review of Commission’s Employee Appraisal 

Process 

ASSIGNMENT #: OIG-97-02 

RELEASE DATE: January, 1998 

(audit report) 

PURPOSE: During this reporting period, the OIG continued to 

follow-up on the status of this report. Follow-up work conducted during 

previous reporting periods revealed that the Personnel Office had resolved 

three of the four recommendations contained in the original audit report -

OIG-97-02, Review of the Commission’s Employee Appraisal Process, released 

January, 1998. We continued to monitor the progress of the Personnel 

Office’s actions to address the one outstanding audit finding and 

recommendation. 

The primary objectives of the audit were to determine whether or not 

the Commission’s employee appraisal process and the monetary incentive 

process were in compliance with applicable Federal regulations and 

Commission Personnel Instructions. 

The remaining outstanding recommendation recommended the 

Personnel Office take measures to ensure that all performance standards 

October 1, 2000 - March 31, 2001 Page 12 
Audit Follow-up (continued) 

used to evaluate employees are written in accordance with employee 

performance management requirements contained in Title 5 of the Code of 

Federal Regulations (CFR). In addition, the OIG recommended the Personnel 

Office develop a system to review all new performance standards prepared by 

supervisors to ensure standards are written in compliance with regulation 

and Commission policy. 

A Personnel Office Standard Operating Procedures on Performance 

Standards Management has been issued to document the Personnel Office’s 

procedures for ensuring that the performance standards are in compliance 

with Commission policy and Title 5 of the CFR. The Personnel Office has 

agreed to a process that will include reviewing performance standards on file 

upon receipt of employee appraisals. In addition, the appraisal and 

performance plan will be compared to ensure employees are properly 

evaluated based on the expectations contained in the performance plan on file 

in the Personnel Office. 

The OIG concluded that the Personnel Office has taken sufficient steps 

to address the weaknesses identified in our 1998 audit report. Therefore, the 

OIG closed the outstanding recommendation and all four audit 

October 1, 2000 - March 31, 2001 Page 13 
Audit Follow-up (continued) 

recommendations contained in the January, 1998 audit report have been 

addressed by management and are now closed. 

October 1, 2000 - March 31, 2001 Page 14
INSPECTIONS 

TITLE: Inspection of the Commission’s Web Site 

Privacy Practices 

ASSIGNMENT #: OIG-01-02 

RELEASE DATE: In Progress 

PURPOSE: This inspection is being conducted due to a 

statutory requirement with regards to Section 646 of the Treasury and 

General Government Appropriations Act, 2001. The Act requires each 

Federal Inspector General to report to Congress on Agency practices/policies 

with respect to personal and identifiable information collected via the 

agencies’ Web site. 

Tests were conducted to determine whether the FEC’s Web site uses 

Internet cookies or Web bugs. Internet cookies and Web bugs are methods 

used by some Web sites to track and/or record personal information about 

Web users. Meetings were held with FEC management, criteria applicable to 

the inspection was reviewed and external parties were contacted. 

The OIG sent letters to the Subcommittees on Treasury, Postal 

Service and General Government, stating that the FEC OIG is actively 

working on the issue. 

October 1, 2000 - March 31, 2001 Page 15 
Inspections (continued) 

TITLE: Inspection of the Commission’s Compliance 

with the Federal Managers’ Financial 

Integrity Act (FMFIA) of 1982 

ASSIGNMENT #: OIG-01-03 

RELEASE DATE: In Progress 

PURPOSE: The inspection is being conducted to ensure that 

the Commission is meeting the requirements of the Federal Managers’ 

Financial Integrity Act of 1982. The Act requires all federal agencies to 

establish internal accounting and administrative controls in accordance with 

standards prescribed by the Comptroller General. In addition, Agency heads 

are required to submit an annual statement of assurance to the President on 

the adequacy of internal controls and actions taken to correct any identified 

weaknesses. 

The primary objectives of the inspection are to 1) evaluate the 

Commission’s compliance with the provisions of the FMFIA Act of 1982, GAO 

Standards, OMB policies, and Commission directives; 2) determine whether 

the Commission adequately implemented agency policies and procedures to 

assess, as well as strengthen the internal control environment; 3) determine 

whether the Commission’s Annual FMFIA report of 2000 to the President 

accurately represented the adequacy of the review process 

October 1, 2000 - March 31, 2001 Page 16 
Inspections (continued) 

within the Commission; and 4) follow-up on issues addressed during the 1991 

audit of the Commission FMFIA program. 

The work on this inspection is on-going, with an anticipated completion 

date during the next reporting period. 

October 1, 2000 - March 31, 2001 Page 17 
Inspections (continued) 

TITLE: Inspection of the Commission’s Westlaw 

Database Service 

ASSIGNMENT #: OIG-01-05 

RELEASE DATE: In Progress 

PURPOSE: The Westlaw service provides Commission staff 

with on-line research information and is administered by the FEC Library. 

The inspection has included a review of a fiscal year 2001 duplicate payment 

paid to the Westlaw vendor by the Commission in the amount of $10,908. 

The OIG has interviewed staff from the Administrative, Accounting, and 

Library divisions to determine the cause of the duplicate payment and the 

likelihood of a re-occurrence. Accounting and administrative documents 

related to the Westlaw account are also being reviewed. Additional work 

performed on the inspection of the Westlaw service will be detailed in the 

final inspection report to be released by the OIG. 

October 1, 2000 - March 31, 2001 Page 18 
INVESTIGATIONS 

At the request of the U.S. Postal Inspection Service, the Office of 

Inspector General assisted in an investigation of a FEC employee. The OIG 

confirmed that the subject of their investigation was an employee and 

provided requested information such as his location in the agency, work 

hours, computer access, and other details. 

The OIG was also present when the special agents from the Postal 

Inspection Service executed their search warrant for the employee’s work 

station and the computer assigned to the employee. 

The OIG has also periodically contacted the special agent in charge to 

ascertain the status of the case. The case is still open and the employee has 

yet to be indicted. 

October 1, 2000 - March 31, 2001 Page 19 
ADDITIONAL OFFICE OF INSPECTOR GENERAL ACTIVITY 

All legislation, as compiled by the Commission’s Congressional Affairs 

Office, was reviewed by the Inspector General, as required by the Inspector 

General Act of 1978, as amended. The Inspector General reviews and 

comments, when appropriate, on all legislation provided by the PCIE 

Legislative Committee. In addition, the Inspector General routinely reads all 

Commission agenda items and attends Finance Committee meetings. 

On December 21, 2000, Congress enacted the Omnibus Consolidated 

Appropriations Act. There was a requirement contained in the Act that 

states each Federal Inspector General is to provide quarterly reports to the 

Committees on Appropriations, analyzing the promptness of payment for 

water and sanitary sewer services received by Federal agencies from the 

District of Columbia Water and Sewer Authority (WASA). 

During the research conducted to comply with this requirement, the 

OIG found that both locations occupied by FEC staff receive services from the 

DC WASA, but the cost of these services is included in the monthly rent paid 

by the FEC to the General Services Administration (GSA). The GSA is 

responsible for the payment of rent to the property management/building 

owner who in turn is responsible for the payment to the DC WASA for water 

and sanitary services. Consequently, we concluded that the reporting 

October 1, 2000 - March 31, 2001 Page 20 
requirement does not apply to the agency since the FEC does not pay water 

and sanitary services directly to the DC WASA. Both the Senate and House 

Appropriations Committees were notified on January 11, 2001 on the results 

of our review. 

We also responded to a request by the Chairman of the Committee on 

Government Reform regarding recovery auditing. This request was sent to 

all IGs. The Chairman requested examples of significant instances in which 

government agencies have overpaid or not been credited properly on a 

contract for goods or services within the past three to five years. The OIG 

responded that the FEC OIG did not have any significant instances 

uncovered by the OIG in the past five years where the FEC has overpaid or 

has not been credited properly on a contract for goods or services. 

The OIG responded to a request for assistance from the FEC’s Director 

of Personnel. The Director of Personnel raised an issue with the OIG in 

regards to Federal law, regulations, and other guidance applicable to the 

safeguarding of Commission property, specifically laptop computers. In order 

to ensure the Commission’s computer assets and the computer data stored on 

those assets are protected, management and staff must both play an active 

role to safeguard computer equipment and data. Management’s primary 

responsibilities include the establishment of adequate policies and procedures, 

and provide the training necessary to educate computer users on their 

October 1, 2000 - March 31, 2001 Page 21 
responsibilities and the risks associated with the use of computer equipment. 

The Director of Personnel was provided with several criteria that the OIG 

felt would give him a better understanding of the duties Federal employees 

have to protect government property. 

The Data Systems Development Division training staff invited the 

OIG to attend a training program being developed by the DSDD on 

information systems security. The training will eventually be presented to 

all Commission staff. The OIG provided not only our verbal comments 

during and after the presentation, but gave written comments to DSDD 

training staff on improvements to the oral presentation and the written 

guidelines to be provided to staff. 

The OIG provided comments on the President’s Council on Integrity 

and Efficiency/Executive Council on Integrity and Efficiency’s (PCIE/ECIE) 

Strategic Plan. Two suggestions were provided, which the OIG believes 

would be beneficial for the OIG community to undertake. 

The first suggestion was to develop an Internet search capability to 

enable the OIG community, the Congress, and the public to easily locate OIG 

documents, including audit, inspection, and evaluation reports. There are 

several groups which would benefit from the creation of an OIG search 

capability. The OIG community would be one of the primary beneficiaries of 

October 1, 2000 - March 31, 2001 Page 22 
the technology. One benefit would be the ability to identify from other OIG’s 

work potential government-wide problems dealing with a particular audit 

subject. 

Another potential beneficiary of a search capability of OIG work is the 

Congress. Members of Congress and their staffs would be able to quickly and 

efficiently locate and obtain OIG work by subject matter or work performed 

by a particular OIG. 

The public could also benefit from a search capability of OIG work. A 

common complaint by the public was the inability to determine which 

government department or agency is responsible for a particular program. 

FirstGov.gov was created to solve this problem and enable citizens to search 

by subject and quickly identify the department/agency responsible for that 

program. An OIG search engine would provide a similar benefit to parties 

interested in OIG work. 

The second suggestion involved distributing a periodic OIG community 

newsletter summarizing activities of the OIG community. The newsletter 

would provide a brief synopsis of events and/or activities of the OIG 

community. The primary benefit of a newsletter is to ensure the OIG 

community is informed of past and future events, projects and issues, and to 

October 1, 2000 - March 31, 2001 Page 23 
maximize participation in OIG events, such as training and working group 

meetings. 

This reporting period, the OIG received numerous e-mails and 

correspondence regarding the Presidential voting procedures in Florida. Our 

office responded to the inquiries with a brief reply that stated their 

correspondence had been forwarded to the FEC’s Office of Election 

Administration Division. 

In addition to the 400 plus communications regarding the Florida 

election, we also received complaints pertaining to other election matters 

such as, immigrants voting in California, cigarettes being handed out to woo 

voters to the polls, and the illegal disposal of ballots. These issues were 

forwarded to the appropriate FEC offices. 

As an ongoing task, the Special Assistant to the Inspector General is 

assigned to conduct quarterly cash counts of the Agency’s impest fund. Three 

unannounced cash counts of the FEC’s imprest fund were performed this 

reporting period (OIG-00-07, OIG-01-01, and OIG 01-04). The imprest fund 

consist of three drawers totaling $2,500. The results of the cash counts 

revealed that all cash was accounted for and cash disbursements from the 

imprest were reasonable and consistent with FEC imprest fund policy. 

October 1, 2000 - March 31, 2001 Page 24 
There have been several discussions pertaining to the abolishment of 

the imprest fund since most transactions by the Commission are electronic, 

however a final decision has not been made. 

October 1, 2000 - March 31, 2001 Page 25
ECIE AND PCIE ACTIVITY 

The Executive Council on Integrity and Efficiency was established by 

Executive Order on May 11, 1992. It consists of Designated Federal Entity 

Inspectors General and representatives of the Office of Government Ethics, 

the Office of Special Counsel, the Federal Bureau of Investigation and the 

Office of Management and Budget. 

The Inspector General (or staff) attended the following training, 

programs and/or conferences during this reporting period: 

• ECIE - Monthly Meetings 

• PCIE/ECIE - Joint Quarterly Meeting 

• National Aeronautics and Space Administration - Webmasters 

Meeting 

• Inspector General Auditor Training Institute - GPRA Strategic 

Plans, Performance Plans, and Performance Reports 

• Institute of Internal Auditors - Internal Auditing: New Knight of 

the Board and CEO Roundtable 

• U.S. Postal Service - Directors of Investigation Conference, 

Williamsburg, Virginia 

• Inspectors General Meeting - Discussion by Virginia Thomas, 

Heritage Foundation, concerning the new administration and the 

role of IGs 

• Institute of Internal Auditors - 21st Annual Conference: 

Maximizing the Power of Information, Technology and Human 

Capitol 

October 1, 2000 - March 31, 2001 Page 26 
• Association of Government Accountants - Auditor Independence and 

other “Yellow Book” issues 

• U. S. Department of Agriculture - 30th Annual JFMIP Conference: 

New Horizons for Financial Management 

• Federal Audit Executive Council - Government Information Security 

Reform Act Conference 

• Department of Commerce - Semiannual Report Coordinators’ 

(SARC) meeting 

• Federal Election Commission - Ethical Conduct for Executive 

Branch Employees 

• Federal Election Commission - Administrative Liaisons Meeting 

• Federal Election Commission - FEC provided computer training 

classes 

• Office of Government Ethics - “Brown Bag” session on preparing for 

an ethics program review 

• OIG Liaisons Meeting - Discussion of IGnet Statistician Advisory 

Group - OIG wide meeting of statistician advisory group 

• Certified Internal Auditors Review Class - Review course offered by 

the Inspector General Auditor Training Institute in cooperation 

with Institute of Internal Auditing 

October 1, 2000 - March 31, 2001 Page 27 
IG ACT REPORTING REQUIREMENTS PAGE 

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

the Inspector General Act Amendments of 1988 are listed below: 

Section 4(a)(2) Review of Legislation-----------------------------------------------20 

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-----------------------------------------------31 

Section 5(a)(4) Matters Referred to Prosecutive 

Authorities---------------------------------------------------------None 

Section 5(a)(5) Summary of Instances Where Information 

was Refused-------------------------------------------------------None 

Section 5(a)(6) List of Audit Reports-----------------------------------------------10 

Section 5(a)(7) Summary of Significant Reports-------------------------------10 

Section 5(a)(8) Questioned and Unsupported Costs---------------------------29 

Section 5(a)(9) Recommendations that Funds be put 

to Better Use---------------------------------------------------------30 

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 

October 1, 2000 - March 31, 2001 Page 28 
TABLE I 

INSPECTOR 

WITH 

DOLLAR VALUE (in thousands) 

QUESTIONED UNSUPPORTED 

NUMBER COSTS COSTS 

GENERAL ISSUED REPORTS 

QUESTIONED COSTS 

A. For which no management 0 0 [0] 

decision has been made by 

commencement of the reporting 

period 

B. Which were issued during the 0 0 [0] 

reporting period 

Sub-Totals (A&B) 0 0 [0] 

C. For which a management 0 0 [0] 

decision was made during 

the reporting period 

(i) Dollar value of disallowed 0 0 [0] 

costs 

(ii) Dollar value of costs 0 0 [0] 

not disallowed 

D. For which no management 0 0 [0] 

decision has been made by the 

end of the reporting period 

E. Reports for which no management 0 0 [0] 

decision was made within 

six months of issuance 

October 1, 2000 - March 31, 2001 Page 29 
TABLE II 

INSPECTOR 

RECOMMENDATIONS THAT FUNDS BE PUT TO BETTER USE 

NUMBER DOLLAR VALUE 

(in thousands 

GENERAL ISSUED REPORTS WITH 

A. For which no management 

decision has been made by 

the commencement of the 

reporting period 

B. Which were issued during 

the reporting period 

C. For which a management 

decision was made during 

the reporting period 

(i) dollar value of 

recommendations 

were agreed to by 

management 

based on proposed 

management action 

based on proposed 

legislative action 

(ii) dollar value of 

recommendations 

that were not agreed 

to by management 

D. For which no management 

decision has been made by 

the end of the reporting period 

E. Reports for which no 

management decision 

was made within six months 

of issuance 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

October 1, 2000 - March 31, 2001 Page 30 
TABLE III 

SUMMARY OF AUDIT REPORTS WITH CORRECTIVE ACTIONS 

OUTSTANDING FOR MORE THAN SIX MONTHS 

Recommendations 

Audit Report 

Report Issue 

Number Date 

97-02 01/98 

98-08 05/99 

00-01 09/00 

Management 

Response 

Date 

01/98 

04/99 

06/00 

Number Closed Open 

4 4 0

9 3 6

7 3 4

October 1, 2000 - March 31, 2001 Page 31
FEC / OIG Strategic Plan 

OIG Products: To provide products and 

services that promote positive change in 

FEC policies, programs, and operations. 

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, Congress, 

and Management. 

Strategy: Perform work that supports; 

- Federal Election Commission and Congressional 

priorities; 

- National Performance Review objectives; 

- Strategic Management Initiative efforts; 

Focus OIG attention in the following areas of emphasis: 

- managing change; 

- resource allocation in relation to policy objectives; 

- delivery of client service; 

- causes of fraud and inefficiency; and, 

- automation and communication. 

Objective C: Follow-up and evaluate 

results of OIG products and services to 

assess their effectiveness in promoting 

positive change. 

Strategy: 

- Identify, as appropriate, lessons learned to improve 

timeliness and quality; and, 

- conduct follow-up reviews to determine if intended 

results have been achieved. 

Objective D: Satisfy customers, 

consistent with the independent nature of 

the OIG. 

Strategy: 

- establish professional communication and interaction 

with customers to promote the open exchange of ideas; 

- incorporate customer feedback, as appropriate; and, 

- be open to customer-generated solutions and 

options. 

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. 

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: Maintain a dynamic strategic 

planning process. 

Strategy: 

- periodically review and update the strategic plan 

address changing OIG and FEC priorities; and, 

-

develop short and long term plans to address them. 

to 

identify factors that influence organizational change and 

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

and results in positive change. 

Strategy: 

- solicit FEC and Congressional input in planning OIG 

activities; 

- develop internal planning mechanisms to support FEC 

goals and priorities; 

- ensure that priorities of IG are effectively communicated; 

and, 

- identify specific targets for OIG review that are the most 

cost-effective 

Objective C: Identify customer needs and 

provide products and services to meet 

them. 

Strategy: 

- establish new customer feed back mechanisms; 

- consider and evaluate customers feedback when 

planning and developing products and services; 

- respond to Congressional inquires and request for 

briefing and testimony; 

- promote open exchange of ideas and information through 

outreach and through use of e-mail; and, 

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

information received through the OIG hotline and other 

sources. 

Objective D: Implement efficient, effective, 

and consistent resolution and follow-up 

procedures. 

Strategy: 

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

management is aware of their role in the process; and, 

- 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. 

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. 

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: Attract and retain well-qualified, 

diverse and motivated employees. 

Strategy: 

- develop and implement a comprehensive recruiting program 

that attracts a broad population with the knowledge, skills, 

abilities, and expertise necessary to make meaningful 

contributions to the OIG; 

- assess employee satisfaction and develop strategies to address 

employee concerns; 

- identify reasons for staff departures and develop plans to foster 

greater staff retention; and, 

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

force. 

Objective B: Provide training and developmental 

opportunities to employees. 

Strategy: 

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

office needs as well; 

- ensure that Government Auditing Standards in relation to 

training are adhered to; and, 

- maintain a reporting system to ensure that educational 

requirements are met. 

Objective C: Assess, recognize, and reward, 

when possible, performance that contributes to 

achieving the OIG mission. 

Strategy: 

- develop and articulate expectations for each employee's 

performance, including contributions in meeting the mission & 

goals of the OIG; and, 

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

exceptional employee performance. 

Objective D: Create and maintain a working 

environment that promotes teamwork and 

effective communication. 

Strategy: 

- ensure that communications between employees is open; and, 

- provide employees with the tools and incentives they need to 

adequately 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. 

October 1, 2000 - March 31, 2001 Page 32 
CONTACTING THE OFFICE OF INSPECTOR GENERAL 

The success of the OIG mission to prevent fraud, waste, and abuse depends 

on the cooperation of FEC employees (and the public). There are several 

ways to report questionable activity. 

Call us at 202-694-1015 or toll-free 1-800-424-9530. A confidential or 

anonymous message can be left 24 hours a day / 7 days a week. 

Write or visit us - we are located at: Federal Election Commission 

Office of Inspector General 

999 E Street, N.W., Suite 940 

Washington, DC 20463 

Mail is opened by OIG staff members only. 

You can also contact us by e-mail at: oig@fec.gov. 

Individuals may be subject to disciplinary or criminal action for knowingly 

making a false complaint or providing false information. 

October 1, 2000 - March 31, 2001 Page 33