Semiannual Report to Congress

April 1, 2014 – September 30, 2014

November 2014

Federal Election Commission - Office of Inspector General

999 E Street, N.W. Suite 940, Washington, D.C. 20463
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 FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

Office of Inspector General

A	
  MESSAGE	
  FROM	
  THE	
  INSPECTOR	
  GENERAL

This	
  has	
  been	
  at	
  time	
  of	
  change	
  for	
  the	
  Office	
  of	
  Inspector	
  General	
  (OIG)	
  as	
  we	
  said	
  

goodbye	
  to	
  a	
  long-­‐time	
  OIG	
  employee.	
  	
  Jon	
  Hatfield,	
  Deputy	
  Inspector	
  General,	
  

accepted	
  the	
  Inspector	
  General	
  position	
  at	
  the	
  Federal	
  Maritime	
  Commission.	
  	
  Jon	
  

had	
  been	
  an	
  employee	
  in	
  the	
  OIG	
  for	
  twenty	
  years,	
  starting	
  as	
  an	
  auditor	
  and	
  rising	
  

to	
  the	
  position	
  of	
  Deputy	
  Inspector	
  General.	
  	
  He	
  will	
  be	
  greatly	
  missed,	
  but	
  we	
  all	
  

know	
  he	
  will	
  have	
  nothing	
  but	
  success	
  as	
  he	
  assumes	
  the	
  role	
  of	
  Inspector	
  General.	
  	
  

J.	
  Cameron	
  Thurber	
  was	
  selected	
  to	
  be	
  the Deputy	
  Inspector	
  General,	
  a	
  new	
  role	
  for	
  

him	
  in	
  the	
  OIG,	
  as	
  he	
  had	
  previously	
  served	
  as	
  the	
  Counsel	
  to	
  the	
  Inspector	
  

General/Chief	
  Investigator.	
  	
  I	
  look	
  forward	
  to	
  working	
  with	
  Cam	
  in	
  his	
  new	
  capacity	
  

as	
  I	
  am	
  positive	
  he	
  will	
  bring	
  the	
  same	
  dedication	
  and	
  thoroughness	
  to	
  his	
  new	
  

position	
  as	
  he	
  displayed	
  in	
  his	
  previous	
  one.	
  	
  	
  Once	
  we	
  have	
  filled	
  the	
  vacancy	
  in	
  the	
  

Counsel	
  position,	
  the	
  office	
  will	
  be	
  back	
  to	
  full	
  strength.

Even	
  with	
  the	
  gaps	
  in	
  staffing,	
  the	
  OIG	
  had	
  a	
  successful	
  six	
  months,	
  as	
  evidenced	
  by	
  

the	
  attached	
  Semiannual Report	
  to	
  Congress.	
  	
  We	
  continued	
  to	
  place	
  emphasis	
  on	
  

the	
  outstanding	
  recommendations	
  from	
  previous	
  audit	
  and	
  inspection	
  reports,	
  

started	
  the	
  FY	
  2014	
  Financial	
  Statement	
  Audit,	
  and	
  closed	
  a	
  joint	
  investigation	
  

conducted	
  with	
  the	
  Office	
  of	
  Special	
  Counsel to	
  just	
  highlight	
  a	
  few	
  

accomplishments.

The	
  staff	
  of	
  the	
  OIG	
  continues	
  to	
  be	
  dedicated	
  to	
  the	
  mission	
  of	
  the	
  office	
  and	
  

worked	
  diligently	
  to	
  ensure	
  there	
  were	
  no	
  gaps	
  due	
  to	
  staffing	
  shortages.	
  	
  	
  As	
  

always,	
  each	
  and	
  every	
  staff	
  person	
  performed	
  a	
  variety	
  of	
  duties	
  outside	
  of	
  their	
  

areas	
  of	
  expertise	
  which	
  enables	
  the	
  office	
  to	
  provide	
  a	
  wider	
  range	
  of	
  coverage	
  to	
  

the	
  Federal	
  Election	
  Commission.	
  	
  I	
  am	
  honored	
  to	
  work	
  beside	
  these	
  committed	
  

people.

Lynne	
  A.	
  McFarland

Inspector	
  General

Federal	
  Election	
  Commission

October	
  30,	
  2014
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Executive Summary 1

OIG Audit Activity 3

OIG Audit Follow-up Activity 4

OIG Inspections 5

OIG Hotline Information 8

OIG Investigative Information 10

Additional OIG Activity 11

Council of the Inspectors General on Integrity and Efficiency (CIGIE) Activity 12

OIG Contacts 13

List of Training, Meetings and Conferences Attended by OIG Staff 14

Reporting Requirements 16

Table I – Questioned Cost 17

Table II – Funds Put To Better Use 18

Table III – Summary Of Audit And Inspection Reports With 19

Corrective Actions Outstanding For More Than Six Months

Appendix A

The Federal Election Commission 20

Office of Inspector General 20 

Appendix B

Peer Review Activity 21 

Table of Contents
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Executive Summary

During this semiannual reporting period, the OIG 

released the report titled Review of Outstanding 

Recommendations as of June 2014 (OIG-14-07) to 

the Commission. The OIG semiannually provide the 

Commission with the status of outstanding recommendations detailing the follow-up work conducted 

by the OIG and the status of the outstanding OIG 

audit and inspection recommendations. 

For this reporting period, we reviewed five (5) audits 

and inspections that had a total of 102 outstanding 

recommendations. The OIG was able to collectively 

close fifteen (15) recommendations from three (3) of 

the five (5) audits and inspections. Three (3) of the 

fifteen (15) recommendations were closed due to 

management providing the OIG with written documentation noting their decision to accept the risk of 

not implementing corrective actions. A noteworthy 

accomplishment, the Office of Human Resources 

closed nine (9) of twenty-six (26) audit recommendations from the Audit of the Federal Election 

Commission’s Office of Human Resources within the 

first six (6) months of the follow-up period. For additional information, see the section titled OIG Audit 

Follow-up Activity (starting on page 4).

The inspection of the FEC’s compliance with 

the Federal Managers’ Financial Integrity Act

(FMFIA) requirements, as prescribed by Office of 

Management and Budget (OMB) Circular A-123, was 

completed during this reporting period. According 

to the FMFIA, “...management is responsible for 

establishing and maintaining internal control to 

achieve the objectives of effective and efficient management operations, reliable financial reporting and 

compliance with applicable laws and regulations...” 

The primary objectives of the inspection were to 1) 

assess whether the FEC is complying with the annual assessment requirement of FMFIA; 2) determine if the FEC’s annual internal control review 

The Inspector General Act of 1978, as amended 

(the IG Act), states that the Inspector General is 

responsible for conducting audits, 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.

This semiannual report includes the major accomplishments of the Federal Election Commission 

(FEC) Office of Inspector General (OIG), as well as 

relevant information regarding additional OIG activities. The executive summary highlights the most 

significant activities of the OIG. Additional details 

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

investigations) can be found in subsequent sections 

of this report. The diligent work, outstanding efforts, 

and many contributions of our entire IG staff make 

the major accomplishments of the OIG possible.

On April 21, 2014, Leon Snead & Company LSC 

provided the engagement letter detailing the IPA and 

FEC management roles and responsibilities regarding the audit process. As in prior years, the IPA is 

required by the FEC OIG’s contract to conduct additional testing on information technology (IT) controls, 

as the FEC is exempt from the Federal Information 

Systems Management Act (FISMA) and is not required to perform the annual FISMA audit. The fieldwork phase of the audit began on May 5, 2014. LSC 

will begin final testing in October and the audit is 

scheduled to be completed November 14, 2014. For 

detailed information pertaining to the Audit of the 

FEC’s Fiscal Year 2014 Financial Statements (OIG14-04), see the section titled OIG Audit Activity

(starting on page 3). 

April 1, 2013 - September 30, 2013 April 1, 2014 - September 30, 2014
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(ICR) process is adequately designed and operating 

effectively to meet the requirements of FMFIA/OMB 

Circular A-123; and 3) identify any process improvements. Based on the results of work performed, 

OIG concludes the FEC is generally in compliance 

with FMFIA/OMB A-123 annual internal control assessment requirements. However, we have identified 

that all program managers are not maintaining sufficient documentation nor providing the Office of the 

Chief Financial Officer (OCFO) with adequate documentation to ensure ICRs were properly conducted 

and in compliance with FEC internal control policies 

and procedures. The OIG published the final inspection report June 2014. For detailed information 

pertaining to OIG inspections, see the section titled 

OIG Inspections (starting on page 5). 

The inspection of the FEC’s travel and purchase 

card program commenced during this reporting period. The primary objectives are to 1) ensure card 

holders and approvers are complying with applicable charge card policies, procedures, and regulations; and 2) assess whether the Federal Election 

Commission’s travel and purchase card programs 

are adequately designed to meet the requirements 

of OMB Circular A-123 – Appendix B (Improving 

the Management of Government Charge Card 

Programs, as revised) and the Government Charge 

Card Abuse Prevention Act of 2012 (Public Law 112-

194). Fieldwork was completed during this reporting 

period and the OIG discussed potential findings with 

program managers. The OIG expects to publish the 

final inspection report December 2014 (see page 6). 

During this semiannual reporting period, five (5) new 

hotline complaints were opened and five (5) hotline complaints were closed, one (1) of which was 

merged into an ongoing investigation. The OIG has 

two (2) open hotline complaints as of the close of 

this reporting period, both of which were opened prior to the beginning of this reporting period. The OIG 

received two (2) hotline inquiries, one (1) of which 

required no further action. The other consisted of a 

misdirected complaint; the individual was referred to 

the proper entity.

No new investigations were opened and one (1) investigation was closed during this reporting period. 

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

reporting period. For detailed information pertaining to hotline complaints and investigations, see the 

sections titled OIG Hotline Information (starting on 

page 8) or OIG Investigative Information (starting 

on page 10).
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OIG Audit Activity

Audit of the FEC's Fiscal Year 2014 Financial 

Statements

Assignment Number: OIG-14-04

Status: In Progress

On April 21, 2014, Leon Snead & Company (LSC) 

provided the engagement letter to the Inspector 

General, FEC Commissioners and management 

detailing the IPA’s and FEC management roles and 

responsibilities regarding the audit process. The entrance conference was subsequently held on April 

23, 2014. 

As in prior years, the IPA is required by the FEC 

OIG’s contract to conduct additional testing on information technology (IT) controls, as the FEC 

is exempt from the Federal Information Systems 

Management Act (FISMA) and is not required to perform the annual FISMA audit. The fieldwork phase of 

the audit began on May 5, 2014 and interim testing 

began on July 14, 2014. 

In addition to the normal process of testing internal 

controls, LSC held separate status meetings, as well 

as contractual bi-weekly status meetings with management. As required by the audit process, LSC held 

a meeting to communicate the status of the audit 

process with those charged with governance (Chair 

and Vice-Chair) over the agency. This meeting provided governance with the approach and scope of 

the annual audit, the status of FY 2013 findings, and 

the status of the current (FY 2014) audit. LSC will 

start final testing in October, and the audit is scheduled to be completed November 14, 2014. 

April 1, 2014 - September 30, 2014
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Office of Inspector’s General Review of Outstanding 

Recommendations as of June 2014

Assignment Number: OIG-14-07

Status: Released July 2014

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

ReviewofOutstandingRecommendationsasofJune2014.

pdf

The OIG semiannually provides the Commission with 

the status of outstanding recommendations detailing the 

follow-up work conducted by the OIG and the status of 

the outstanding OIG audit and inspection recommendations. Since the last follow-up report, released December 

2013, the OIG added the Audit of the Federal Election 

Commission’s Office of Human Resources report (released July 2013) to the audit follow-up process because 

the recommendations have been outstanding for more 

than six (6) months. 

For this reporting period, we reviewed the following five 

(5) audits and inspections that contained a combined total 

of 102 outstanding recommendations: 

•	 Audit of the Commission’s Property Management 

Controls;

•	 2010 Follow-up Audit of Privacy and Data Protection;

•	 2010 Follow-up Audit of Procurement and Contract 

Management;

•	 Inspection of the FEC’s Disaster Recovery Plan and 

Continuity of Operations Plans; and 

•	 Audit of the FEC’s Office of Human Resources.

The OIG was able to collectively close fifteen (15) recommendations from three (3) of the five (5) audits and 

inspections. Three (3) of the fifteen (15) recommendations closed this period were closed due to management 

providing the OIG with written documentation noting their 

decision to accept the risk of not implementing corrective 

actions for outstanding recommendations contained in the Audit of the Commission Property 

Management Controls report.

A noteworthy accomplishment identified during 

the most recent audit follow-up review was that 

the Office of Human Resources closed nine (9) 

of twenty-six (26) audit recommendations from 

the Audit of the Federal Election Commission’s 

Office of Human Resources within the first six (6) 

months of the follow-up period. 

The OIG continues to have concerns regarding 

the following areas:

•	 FEC needs to improve the accountability of 

management officials necessary to ensure 

compliance with all aspects of Directive 50: 

Audit Follow-up;

•	 FEC’s IT inventory records are consistently 

inaccurate to include the recently purchased 

iPhones for FEC staff; and

•	 OIG is concerned with the lack of progress 

in addressing the outstanding recommendations for the Inspection of the FEC’s Disaster 

Recovery Plan and Continuity of Operations 

Plan report. Thirty (30) recommendations 

were contained in the report, issued January 

2013. Approximately twenty (20) months 

have passed and all thirty (30) recommendations remain open. The lack of attention to 

these recommendations may put the agency 

at risk in the event of a local disaster. 

OIG Audit Follow-up Activity
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Inspection of FEC’s Compliance with FMFIA/OMB 

Circular A-123

Assignment Number: OIG-14-01

Status: Released June 2014

http://www.fec.gov/fecig/documents/FEC-A123InspectionReport-Final06-17-14-assessed.pdf

The inspection of the FEC’s compliance with 

the Federal Managers’ Financial Integrity Act

(FMFIA) requirements, as prescribed by Office of 

Management and Budget (OMB) Circular A-123 was 

completed during this reporting period. According 

to the FMFIA, “...management is responsible for 

establishing and maintaining internal control to 

achieve the objectives of effective and efficient 

management operations, reliable financial reporting 

and compliance with applicable laws and regulations...” The FEC’s Office of the Chief Financial 

Officer (OCFO) oversees the agency’s internal control program and has operational responsibility for 

FEC’s annual internal control assessment process 

(the ICR process). 

The primary objectives of the inspection were to 1) 

assess whether the FEC is complying with the annual assessment requirement of FMFIA; 2) determine 

if the FEC’s annual internal control review process 

is adequately designed and operating effectively 

to meet the requirements of FMFIA/OMB Circular 

A-123; and 3) identify any process improvements. 

The inspection fieldwork was completed during the 

prior reporting period. The scope of the inspection 

included a review of FEC’s FMFIA and A-123 compliance procedures performed during FYs 2012 and 

2013. The inspection fieldwork included the following:

•	 Reviewed FEC’s policies and procedures 

for compliance with FMFIA and OMB A-123 

requirements to ensure adequate management 

processes and controls are in place;

•	 Reviewed all fifteen (15) program offices’ ICR 

packages submitted for FY 2012 and FY 2013; 

and 

•	 Interviewed five (5) program offices to discuss 

their annual internal control review process.

Based on the results of work performed, OIG concludes that the FEC is generally in compliance with 

FMFIA/OMB A-123 annual internal control assessment requirements. However, we have identified that 

all program managers are not maintaining sufficient 

documentation nor providing the OCFO with adequate documentation to ensure ICRs were properly 

conducted and in compliance with FEC internal control policies and procedures. In addition, there is an 

opportunity to enhance the effectiveness of the risk 

assessments by applying and evaluating specific 

objectives at the program level opposed to using 

general control objectives for all programs. 

The OIG published the final inspection report 

June 2014. The report included three (3) findings and eight (8) recommendations to improve 

the FEC annual A-123 internal control review 

process. Management generally agreed with all 

recommendations. 

OIG Inspections

April 1, 2014 - September 30, 2014
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Inspection of the FEC’s Travel and Purchase

Card Program

Assignment Number: OIG-14-05

Status: In Progress

The inspection of the FEC’s travel and purchase 

card program commenced during this reporting period. The primary objectives of this inspection are to 

1) ensure that card holders and approvers are complying with applicable charge card policies, procedures, and regulations; and 2) assess whether the 

Federal Election Commission’s travel and purchase 

card programs are adequately designed to meet the 

requirements of OMB Circular A-123 – Appendix B 

(Improving the Management of Government Charge 

Card Programs, as revised) and the Government 

Charge Card Abuse Prevention Act of 2012 (Public 

Law 112-194). 

On May 9, 2014, the OIG distributed an inspection 

notification to management; on May 21, 2014, two 

(2) meetings were held to discuss the purpose of 

the inspection and the preliminary scope of the inspection. A meeting was held with members of the 

Office of the Chief Financial Officer (CFO), including 

the Acting CFO and the Acting Accounting Director; 

and a meeting was held with the Administrative 

Services Division (program office responsible for the 

management and distribution of the physical travel 

cards). 

To gain an understanding of the travel and purchase card programs, the OIG reviewed applicable 

FEC policy and procedures and researched all applicable laws, regulations, and guidance. OIG also 

performed observations of the travel and purchase 

card processes. Fieldwork included testing a sample 

of travel vouchers for the top ten (10) travelers and 

a sample of purchase card transactions. For selections made, the supporting documentation was reviewed to ensure the transactions were properly approved and processed in compliance with applicable 

regulations and internal policies and procedures. 

We also assessed the controls over the distribution of physical travel cards and reviewed the FEC’s 

charge card management program to determine 

whether it is aligned with regulations and guidance 

over charge cards. 

Fieldwork was completed during this reporting period and the OIG discussed potential findings with 

program managers. Once OIG receives and reviews 

follow-up responses related to the potential findings, 

the draft report will be completed and distributed for 

management review. The OIG expects to publish the 

final inspection report in December 2014. 

Inspection of the FEC’s Office of Equal 

Employment Opportunity (OEEO)

Assignment Number: OIG -12-07

Status: In Progress

The OIG is conducting an inspection of the FEC’s 

Office of Equal Employment Opportunity (OEEO). 

The OEEO administers and implements anti-discrimination, prohibited personnel practice and affirmative action statutes and regulations, as well 

as related policies, procedures and guidance (collectively, “EEO laws”) for the FEC. These statutes 

include: Title VII of the Civil Rights Act of 1964, as 

amended; the Notification and Federal Employment 

Anti-Discrimination and Retaliation Act of 2002 (No 

FEAR Act); the Age Discrimination in Employment 

Act of 1967 (ADEA); the Americans with Disabilities 

Act of 1990 (ADA); the Equal Pay Act of 1963; and 

the Rehabilitation Act of 1973. 

The OEEO’s general responsibilities are twofold – 

to advise and educate employees and managers of 

their rights and responsibilities under the EEO laws; 

and to process complaints of alleged violations of 

EEO laws. The OEEO is also responsible for recordkeeping and reporting, especially complaint statistics, as required by EEO laws.

The inspection has two goals. The first goal is to 

analyze the OEEO complaint process and statistics. This goal has three objectives: 1) to ensure the 

OEEO is procedurally compliant, both in process 

and practice, with the statutes and regulations governing complaints; 2) to evaluate the effectiveness of 

OEEO educational and outreach efforts concerning 

the complaint process and practice; and 3) provide 

FEC management with an understanding of trends 

in reported allegations of violations of EEO laws. 
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The second goal is to review OEEO-sponsored 

training and post-training survey results from participants. This goal is intended to measure the OEEO’s 

performance in providing training to FEC employees. 

The field work for the OEEO inspection has been 

completed, but high priority investigations have required a reassignment of resources and delayed the 

drafting of the report. Once the investigations are 

complete and resources can be tasked back to the 

inspection, the report will be published.

April 1, 2014 - September 30, 2014
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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. 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, five (5) 

new hotline complaints were opened and five (5) 

hotline complaints were closed, one (1) of which 

was merged into an ongoing investigation. The OIG 

has two (2) open hotline complaints as of the close 

of this reporting period, both of which were opened 

prior to the beginning of this reporting period. 

Preliminary inquiries were conducted of all hotline 

complaints received. The inquiries included reviews 

OIG Hotline Information

of relevant documents and information, legal research, and interviews. In those instances where a 

preliminary inquiry found that the complaint’s allegations were unsubstantiated, lacked merit, did not include enough information to proceed, or had already 

been addressed, the hotline complaint was rated 

low priority and closed. One hotline complaint was 

closed because an investigation into the allegation 

had already been initiated, and another was closed 

after assistance to another federal law enforcement 

agency was provided. Other hotline complaint topics 

included conflict of interest, Privacy Act violations, 

and improper termination.

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 does not 

route FECA complaints to OGC due to legal requirement. 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 
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be redirected and sent to the appropriate office or 

agency directly from the OIG. Reviewing and, where 

appropriate, responding to these reports and allegations when aggregated can entail a significant 

amount of staff time and effort, despite the fact that 

they are not valid hotline complaints.

In order to capture and document these hotline 

contacts, the OIG created a category for “hotline 

inquiries” that do not meet the criteria for hotline 

complaints. Hotline contacts that are misdirected 

complaints, facially unsubstantiated, meritless or 

invalid, and thus do not meet the criteria for classification as a hotline complaint, are categorized as 

hotline inquires. For this reporting period, the OIG 

received two (2) hotline inquiries, one (1) of which 

required no further action. The other consisted of 

a misdirected complaint, and the individual was referred to the proper entity.

April 1, 2014 - September 30, 2014
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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. 

No new investigations were opened and one (1) investigation was closed during this reporting period. 

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

reporting period. 

The closed matter consisted of a joint investigation 

with the Office of Special Counsel (OSC) concerning Hatch Act violations, and potential ethics and 

criminal violations arising, but separate, from the 

Hatch Act violations. The subject of the investigation entered into a settlement agreement with OSC, 

in which the employee admitted to Hatch Act violations, and agreed to resign from the FEC with 

a two (2) year debarment from Federal service. 

Prosecution was declined. Subsequently the case 

was closed.

OIG Investigative Information
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress Office of Inspector General Semiannual Report to Congress

Additional OIG Activity

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 (IG). In addition, the IG routinely 

reads all Commission agenda items for Commission 

meetings.

The IG 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 during this 

reporting period:

•	 An IG staff member conducted a presentation 

for Florida State University Law Students - topic 

of discussion included an overview of the legal 

aspects of the Office of Inspector General.

•	 The OIG held its annual planning session to 

discuss the work plan for FY 2015 during this 

reporting period. OIG personnel also discussed 

several office procedures that no longer pertain to the day-to-day operation of the OIG. The 

OIG policy and procedures manual will be updated to reflect the changes resulting from the 

session.

April 1, 2014 - September 30, 2014
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress Office of Inspector General Semiannual Report to Congress

The Inspector General continues to serve 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. 

As Vice Chair, the IG is a member of the Executive 

Council of CIGIE. The Executive Council is composed of the CIGIE’s Chair, Vice Chair, the past 

Vice Chair of the PCIE, 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 and its members.

The IG is also Chair of the Inspector General 

Recommendation Panel. This panel is charged with 

making recommendations of qualified candidates to 

the White House and heads of various federal agencies to be considered for vacant Inspector General 

positions.

Council of the Inspectors General on 

Integrity and Efficiency (CIGIE) Activity
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Office of Inspector General Semiannual Report to Congress 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, 2014 through 

September 30, 2014.

These contacts were made through various sources 

such as telephone calls, e-mails, faxes, U.S. mail, 

and personal visits to the OIG.

OIG Contacts

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

5,051 29 5,016 6

April 1, 2014 - September 30, 2014
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress Office of Inspector General Semiannual Report to Congress

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, 2014 – September 30, 2014:

MEETINGS:

List of Training, Meetings

and Conferences

Host / Sponsor Topic / Subject

Council of Inspectors General on Integrity and Efficiency 

Weekly Chair/Vice Chair Meetings

Monthly Meetings

Monthly Executive Council Meetings

Professional Development 

 Committee’s Leadership Development 

 Subcommittee Meetings

Public Media Meeting

Council of Counsels to the Inspectors General Monthly Meetings

Small OIG Working Group Meeting

Assistant Inspector General for Investigations Quarterly Meetings

Department of Transportation Federal User Group TeamMate Meeting

Federal Election Commission

Bi-monthy Directors' Meetings

Finance Committee Meetings

Managers' Meeting

New Employee Orientation

FEC / Office of Inspector General Bi-weekly Staff Meetings

TRAINING/CONFERENCES:

Host / Sponsor Topic / Subject

Association of Government Accountants

2014 Professional Development Conference – Challenges, 

Collaboration, Shared Solutions

Fraud Prevention – You Found Outliers; New What?

Assistant Inspector General for Investigations Annual Conference

CIGIE Training Institute Leadership Forum

Introduction to Suspension and Debarment
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress Office of Inspector General Semiannual Report to Congress

Host / Sponsor Topic / Subject

CIGIE / General Accountability Office Financial Statement Audit Conference

CIGIE / Federal Law Enforcement Training 

Center

Essentials of Inspector General Investigations (EIGI)

IG Adjunct Instructor’s Course

Video Surveillance Law 

HIPPA and the LEO Webinars

CIGIE / Federal Audit Executive Council

FAEC Annual Conference

MIS Solutions for Customized Project Status Reports Auditing 

Acquisitions for Fraud

FAEC Procurement Audit Conference

CCH TeamMate CCH TeamMate Conference

GAO – General Accountability Office 20th Biennial Forum of Government Auditors

I-Sight

Mastering Challenging Investigation Interview Subjects

Conducting a Procedurally Fair Investigation

Closing out the Procedurally Fair Investigation and Dealing 

with the Aftermath

OGE – Office of Government Ethics

National Ethics Summit

Introduction to Impartiality in Performing Official Duties

IIA – Institute of Internal Auditors State of the Institute of Internal Auditing

IIA 2014 District Workshop

Federal Bar Association Ethics and the Government Lawyer – 2014 Annual Symposium

Federal Executive Institute Alumni 

Association

Executive Forum 2014 – Leadership Readiness for New 

Realities

Graduate School USA Federal Budgeting for Non-Budgeting Personnel

April 1, 2014 - September 30, 2014
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress Office of Inspector General Semiannual Report to Congress

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 11

Section 5(a)(1) Significant Problems, Abuses, and Deficiencies None

Section 5(a)(2) Recommendations with Respect to Significant Problems, Abuses,

and Deficiencies None

Section 5(a)(3) Recommendations Included in Previous Reports on Which Corrective 

Action Has Not Been Completed (Table III) 19

Section 5(a)(4) Matters Referred to Prosecuting Authorities None

Section 5(a)(5) Summary of Instances Where Information was Refused None

Section 5(a)(7) Summary of Significant Reports 3

Section 5(a)(8) Questioned and Unsupported Costs (Table I) 17

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

Section 5(a)(10) 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
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress 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

April 1, 2014 - September 30, 2014
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Office of Inspector General Semiannual Report to Congress

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
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Office of Inspector General Semiannual Report to Congress

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Office of Inspector General Semiannual Report to Congress

Table III

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

Recommendations

Report Title Report 

Number

Issue 

Date

Number Closed Open

Audit of the Commission’s Property Management 

Controls OIG-09-02 03/10 36 341 2

2010 Follow-up Audit of Procurement and 

Contract Management

OIG-10-02 06/11 29 20 9

2010 Follow-up Audit of Privacy and Data 

Protection OIG-10-03 03/11 45 16 29

Inspection of the Federal Election Commission’s 

Disaster Recovery Plan and Continuity of 

Operations Plans

OIG-12-06 01/13 30 0 30

Audit of the Federal Election Commission’s Office 

of Human Resources

OIG-12-05 07/13 26 9 17

Cumulative Total Of Outstanding Recommendations 87

1 A total of five (5) recommendations were closed this semiannual period. Three (3) of the five (5) recommendations were 

closed based on management accepting the risk of not implementing corrective action to adequately address the recommendations. The remaining two (2) recommendations were closed due to recent changes (January 2014) to the agency’s 

policies.

April 1, 2014 - September 30, 2014
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Office of Inspector General Semiannual Report to Congress

Appendix a

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. 

Currently the FEC has a full complement of 

Commissioners – Lee E. Goodman, Chair; Ann 

M. Ravel, Vice Chair; Commissioners Carolyn C. 

Hunter; Matthew S. Petersen; Steven T. Walther; 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.
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Office of Inspector General Semiannual Report to Congress

Appendix

Peer Review Activity

In accordance with the Dodd-Frank Wall Street 

Reform and Consumer Protection Act of 2010

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

Section 5 of the Inspector General Act of 1978, 

OIGs are required to include in their semiannual reports (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 outstanding and not fully implemented recommendations the 

OIG made in any peer review it performed for another OIG.

The FEC OIG completed an audit peer review of 

the National Endowment for the Humanities (NEH) 

OIG during the prior reporting period and issued the 

final system review report on September 30, 2013. 

The results of our peer review of the NEH OIG resulted in one (1) recommendation for improvement. 

Consistent with the requirements of Section 989C of 

P.L. 111-203, the FEC OIG is required to include in 

our semiannual report a list of any outstanding and 

not fully implemented recommendations by the NEH 

OIG. 

The FEC OIG contacted the NEH IG on October 

1, 2014, to obtain the status of the recommendation contained in the system review report (peer 

review report). According to the NEH IG, corrective 

action has been fully implemented to address this 

recommendation.

April 1, 2014 - September 30, 2014
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