Federal Election Commission 

Office of Inspector General 

Fiscal Year 2012 

Work Plan

Lynne A. McFarland 

Inspector General
 TABLE OF CONTENTS

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

The Federal Election Commission--------------------------------------------------- 3 

Office of Inspector General------------------------------------------------------------ 3 

OIG Strategic Planning----------------------------------------------------------------- 4 

Annual Planning and Methodology Strategies---------------------------------- 5 

OIG 2012 Work Plan-------------------------------------------------------------------- 6 

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

 

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

 Special Projects------------------------------------------------------------------ 10 
 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) 2012 Annual Work Plan. This work plan includes a 

description of audit, inspections, investigative and special projects planned for the 

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

issues and managing its workload and resources for FY 2012. Successful execution 

of this plan will enable the OIG to provide the highest quality work products to our 

stakeholders and to assist the FEC in meeting its strategic mission, goals and 

objectives. 

The OIG substantially completed the work planned for FY 2011 in the audit 

and investigative programs, as well as special projects, notwithstanding the 

resignation of the OIG’s Senior Auditor in March 2011. Among the audits 

completed in FY 2011 were the FY 2010 annual financial statement audit, and two 

follow-up audits of procurement and privacy practices. These three audits yielded a 

combined total of 85 audit recommendations to improve FEC programs and 

operations. An audit peer review of my office was also conducted in FY 2011 and 

resulted in a pass rating, and my office also conducted a peer review of another 

federal OIG. Lastly, the OIG finalized a new audit manual in FY 2011. 

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

program accomplished all of the work planned for 2011, to include responding to 

hotline complaints, OIG briefings to all FEC staff and the implementation of a new 

hotline service, among other projects. In addition to the investigative program, the 

OIG staff was actively involved in several professional working groups during the 

FY, to include the Council of the Inspectors General on Integrity and Efficiency 

Professional Development Committee, the Inspector General (IG) Candidate 

Recommendations Panel Committee, the IG Council of Counsels, among others. At 

the start of FY 2012, the OIG is fully staffed with six professional staff members, 

and therefore I anticipate the OIG will successfully complete the FY 2012 work plan 

that follows. 

The U.S. Federal Election Commission’s (FEC) mission statement is “to 

prevent corruption in the Federal campaign process by administering, enforcing and 

formulating policy with respect to Federal campaign finance statutes.”1 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 

 

1

 Federal Election Commission, Fiscal Year 2012 Congressional Budget Justification (Washington, DC, February 

14, 2011), 3. 
programs and to detect and prevent fraud, waste and abuse. Effective work 

planning ensures that audit and investigative resources are used effectively and 

efficiently. I look forward to a successful year of providing the highest quality of 

audit and investigative support and service to our stakeholders. 

Lynne A. McFarland 

Inspector General 

Federal Election Commission 

October 3, 2011

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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 – Chair Cynthia L. Bauerly; Vice-Chair Caroline C. 

Hunter; Matthew S. Petersen; Ellen L. Weintraub; Steven T. Walther; and Donald 

F. McGahn, II.

Office of Inspector General 

The Inspector General Act of 1978 (P.L. 100-504), as amended, states that the 

Inspector General is responsible for: 1) conducting and supervising audits and 

investigations relating to the Federal Election Commission’s programs and 

operations; 2) detecting and preventing fraud, waste, and abuse of agency programs 

and operations while providing leadership and coordination; 3) recommending 

policies designed to promote economy, efficiency, and effectiveness of the 

establishment; and 4) keeping the Commission and Congress fully and currently 

informed about problems and deficiencies in FEC agency programs and operations, 

and the need for corrective action. The OIG budget request for FY 2012 was 

$ 1,062,237, an amount necessary to cover salaries and related expenses for six staff 

members, to include audit contracts and training. Exhibit 1 on the following page 

contains the OIG’s organizational chart. 
Exhibit 1: FEC - OIG Organizational Chart

Lynne A. McFarland

Inspector General

Jon Hatfield

Deputy Inspector 

General 

Dorothy Maddox-Holland

Special Assistant to the 

Inspector General

Shellie Purnell-Brown

Senior Auditor

Mia Forgy

Staff Auditor 

J. Cameron Thurber

Counsel to the Inspector 

General/Chief Investigator

OIG Strategic Planning 

Strategic Plan 

To enhance the effectiveness of the OIG and to ensure effective audit and 

investigative coverage of the Commission’s programs and operations, the OIG has a 

strategic plan that covers the period 2010 through 2015. Three major categories of 

OIG-wide goals and objectives are included in the strategic plan, 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. 

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In addition, strategies and performance measures for each objective are 

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

audits includes using feedback from stakeholder surveys to continually improve the 

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

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

the usefulness of the completed OIG assignment and their overall satisfaction with 

the process. 

The OIG strategic plan will continue to evolve and will be reviewed and 

updated as necessary to ensure maximum effectiveness in meeting the changing 

needs of the FEC, consistent with the OIG’s statutory responsibilities. A detailed 

illustrative version of the OIG’s strategic plan can be found as an attachment of this 

Annual Work Plan. 

Annual Planning and Methodology Strategies

The planning methodology 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 2011, the 

OIG conducted our fourth annual all-day brainstorming session. Similar to prior 

years, the ideas and suggestions generated from the 2011 brainstorming session 

were separated into categories to include audits, inspections, investigative program, 

and special projects, 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 the OIG or other oversight 

body; and (8) the adequacy of internal control systems in place for the program or 

other factors. 
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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 2012 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 2012, the following audit related assignments are planned:

1. Audit of the Federal Election Commission’s 2011 and 2012 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 2011 – November 2011; 

May 2012 – November 2012. 
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2. Quality Control Assessment of the FEC Audit Division. 

The OIG will conduct a quality control assessment audit of the FEC Audit 

Division. The primary objectives of the audit will be to ensure that the FEC 

Audit Division’s quality control system is suitably designed and consistently 

complied with to the extent necessary to reasonably ensure compliance with 

audit standards and policies. For example, the audit will include a review of 

the Audit Division’s audit workpapers and reports to ensure that auditors 

consistently adhere to applicable auditing standards and policies; audit 

conclusions are properly supported with sufficient and competent evidence; 

auditors are properly trained; supervisory review of audits is timely 

throughout the conduct of audits; and other requirements that contribute to 

quality audits. Consistent with professional auditing standards and best 

practices, external quality control assessments should be conducted on a 

regular schedule, generally every three to five years, to ensure effective and 

efficient audit practices and adherence to applicable audit standards by the 

audit unit. 

The FEC Audit Division is responsible for conducting audits of political 

committees, and presidential campaigns and convention committees that 

accept public funds. In addition, the Audit Division is responsible for 

evaluating the Presidential primary candidates’ applications for matching 

funds and determining the amount of contributions that may be matched 

with federal funds. 

Planned period of audit: November 2011 – February 2012. 

3. Audit of the Federal Election Commission’s Human Resources Office. 

The OIG is planning to conduct a performance audit of the FEC’s Human 

Resources (HR) Office during fiscal year (FY) 2012. The HR Office is a critical 

component of the agency and is responsible for several important functions, to 

include recruitment and retention of qualified staff; employee-employer 

relations; administration of employee benefits; maintenance and processing of 

personnel records; training; among other responsibilities. The Office of 

Personnel Management (OPM) conducted a Human Capital Management 

Evaluation of the FEC in 2009 and reported numerous weaknesses and 

deficiencies. The purpose of the OIG’s audit will be to follow-up on the 

weaknesses identified by OPM to ensure appropriate corrective action has been 

taken by the FEC; and also focus on additional high-risk areas not covered by 

the 2009 OPM evaluation. 

Planned period of audit: March – June 2012. 

4. On-Going Audit Follow-up. 
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An important responsibility of the OIG is to follow-up on previously issued 

audit reports with outstanding audit recommendations. At the beginning of 

FY 2012, there were 130 outstanding audit recommendations representing 

four OIG audits. On-going audit follow-up during FY 2012 will consist of the 

following responsibilities: (1) review implemented audit recommendations to 

ensure the audit finding has been resolved; (2) review and comment on 

management’s corrective action plans that detail plans for resolving 

outstanding audit recommendations; and (3) conduct regular meetings 

throughout the FY with management to discuss progress to implement audit 

recommendations. 

Planned period of audit followup: On-going throughout FY 2012. 

5. Limited Scope Inspections. 

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

of FEC programs during FY 2012. The goal of the short-term inspections will 

be to focus OIG resources on high-risk areas and provide rapid, up-to-date 

information to FEC management and the Commission on the efficiency and 

effectiveness of FEC programs. Two inspections started in FY 2011 on 

building security and internal controls over Kastle Keys will be completed in 

early FY 2012. In addition to these two inspections, an additional four 

inspections are planned for FY 2012. 

Planned period of inspections: FY 2012. 

6. Additional Work Assignments. 

Additional work assignments may be undertaken during FY 2012 based on 

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

Priorities may be adjusted to reflect emerging issues during the FY.

 
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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 2012, the following investigative assignments are planned:

1. Manage Hotline Complaints and Investigation Caseload. 

The OIG will respond to hotline complaints during the FY and report in a 

timely manner to the appropriate officials on the resolution of hotline 

complaints and investigations. 

2. Proactive Investigative Initiatives. 

The OIG will initiate proactive reviews involving high-dollar and high-risk 

programs and operations of the agency. In addition, the OIG has identified 

several agency data systems, such as financial related systems, and is 

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

initiatives to prevent fraud, waste, abuse and misconduct. 

3. Investigative Peer Reviews. 

The OIG will conduct an investigative peer review of another federal OIG in 

FY 2012. The objective of the peer review is to determine whether internal 

control systems are in place and operating effectively to provide reasonable 

assurance that professional investigative standards are being followed. 

Specifically, the FEC OIG peer review team will analyze existing policies and 

procedures, conduct interviews with selected OIG management officials and 

the investigative staff, and sample closed investigative files and other 

administrative records, as warranted. 

Planned period of peer review: January – March 2012.

In addition to a peer review of another OIG, the FEC OIG will participate in 

the Council of Inspectors General on Integrity and Efficiency voluntary peer 

review program for smaller OIGs, and the FEC OIG will be peer reviewed 

during FY 2012. 

Planned period of peer review: April – June 2012. 
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4. Outreach. 

In FY 2011, the OIG conducted a series of OIG briefings with FEC division 

management and staff. The briefings were intended to educate FEC staff 

about the mission and authority of the OIG, and how to report fraud, waste, 

abuse or mismanagement to the OIG. In FY 2012, the OIG will continue our 

outreach program and conduct fraud briefings. The fraud briefings will 

provide information on 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. The briefings will also discuss the OIG’s new hotline service launched 

in late fiscal year 2011. 

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 FY 2012. For 

example, as required by the Inspector General Act of 1978, as amended, all 

legislation compiled by the Commission’s Congressional Affairs Office is reviewed 

by the Inspector General. The Inspector General and staff also participate in 

several federal Inspectors General community working groups on topics related to 

law, audits, and investigations. All of these activities contribute to the success and 

mission of the OIG. Additional special projects will arise throughout the FY and the 

OIG will prioritize our workload to respond to the additional requirements. 

For fiscal year 2012, the following are examples of the special projects and activities

planned by the OIG:

1. Participate and Attend Professional Working Group and Other 

Meetings. 

The Inspector General or OIG staff will regularly attend the following 

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

professional working group meetings: 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. 
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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 FY. 

2. Semiannual and Quarterly Reporting. 

In accordance with the Inspector General Act of 1978, as amended, the OIG 

will prepare and transmit to the Congress semiannual reports on the 

activities of the OIG. Semiannual reports summarize OIG activities during 

the immediately preceding six-month periods ending March 31st and 

September 30th of each year. OIG semiannual reports are also provided to 

the Commission. The OIG will also report on a quarterly basis to the 

Commission on the activities of the office. 

3. Professional Development and Training. 

The goal of the OIG’s training program is to provide cost effective training to 

increase professional knowledge and proficiency, and ensure staff meet 

continuing professional educational requirements. As a result, the OIG staff 

will attend professional training and conferences during the fiscal year to 

maintain and improve their knowledge, skills and abilities. 
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FEC / OIG Strategic Plan - Fiscal Years 2010 - 2015

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.