Semiannual Report to Congress

October 1, 2013 – March 31, 2014

May 2014

Federal Election Commission - Office of Inspector General

999 E Street, N.W. Suite 940, Washington, D.C. 20463
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October 1, 2013 - March 31, 2014

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

OFFICE OF THE CHAIR
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Office of Inspector General Semiannual Report to Congress
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October 1, 2013 - March 31, 2014
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October 1, 2013 - March 31, 2014

Executive Summary 1

The Federal Election Commission 4

Office of Inspector General 5

OIG Audit Activity 6

OIG Audit Follow-up Activity 7

OIG Inspections and Special Reports 9

OIG Hotline Information 11

OIG Investigations 12

Additional OIG Activity 13

Council of the Inspectors General on Integrity and Efficiency (CIGIE) Activity 14

OIG Contacts 15

List of Training, Meetings and Conferences Attended by OIG Staff 16

Reporting Requirements 18

Table I – Questioned Cost 19

Table II – Funds Put To Better Use 20

Table III – Summary Of Audit And Inspection Reports With 21

Corrective Actions Outstanding For More Than Six Months

Appendix A: Peer Review Activity 22 

Table of Contents
Office of Inspector General Semiannual Report to Congress

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October 1, 2013 - March 31, 2014

Executive Summary

control program to comply with OMB Circular A-123, 

Management’s Responsibility for Internal Control. 

The FY 2013 financial statement audit concluded the 

OIG’s contract with Leon Snead & Co. (LSC) to conduct the annual audit. During this reporting period, 

the OIG completed the procurement process to hire 

a public accounting firm to conduct the agency’s FY 

2014 financial statement audit. LSC was awarded 

the contract to conduct the FY 2014 financial statement audit. For detailed information pertaining to 

the Audit of the FEC’s Fiscal Year 2013 Financial 

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

Audit Activity (starting on page 6).

During this semiannual reporting period, the 

OIG released the Review of Outstanding 

Recommendations as of December 2013 (OIG-14-

02) report to the Commission. The report included 

the results of the OIG’s follow up of seven (7) OIG 

audit and inspection assignments totaling ninetysix (96) outstanding recommendations. Based on 

follow-up work performed and FEC management’s 

corrective actions, the OIG was able to collectively 

close 20 outstanding recommendations in report 

OIG-14-02. As a result of the audit follow up, the 

OIG issued a memorandum to the Chief Information 

Officer (CIO) expressing the OIG’s concern with the 

lack of progress by the Office of the CIO to resolve 

outstanding recommendations contained in the Audit 

of the Commission’s Property Management Controls 

(OIG-09-02) report.

In addition to the audit follow up work reported 

in the Office of Inspectors General’s Review of 

Outstanding Recommendations as of December 

2013 (OIG-14-02), the OIG performed additional follow up review for the Audit of the FEC’s Office of 

Human Resources. This additional review resulted in 

the closure of nine (9) additional recommendations, 

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

as amended, 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 OIG staff make 

the major accomplishments of the OIG possible.

The OIG continued its contract with Leon Snead & 

Co. (LSC) to conduct the FEC’s fiscal year (FY) 2013 

annual financial statement audit. The final audit report containing twenty-seven (27) recommendations 

related to information technology weaknesses was 

issued December 12, 2013. Based on the significant 

IT weaknesses reported by the auditors, the OIG 

and LSC briefed the Commissioners on February 4, 

2014 to discuss the results of the FY 2013 audit. In 

addition to the final audit report, LSC issued a management letter to FEC management to report on an 

issue that did not rise to a level to be included in the 

audit report. The management letter included recommendations for the FEC to improve their internal 
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Office of Inspector General Semiannual Report to Congress

for a total of twenty-nine (29) for this semiannual 

reporting period. Please see the section titled OIG 

Audit Follow up Activity (starting on page 7).

Audit organizations conducting audits in accordance with generally accepted government auditing 

standards (GAGAS) are required to have an independent peer review every three years. The objective of the peer review program is to ensure an 

audit organization’s internal quality control system 

adequately provides reasonable assurance that applicable auditing standards, policies and procedures 

are being followed. During this reporting period, 

the International Trade Commission (ITC) OIG conducted an audit peer review of the FEC OIG. A final 

system review report was issued to the FEC OIG 

February 11, 2014 and this office received a pass

rating. There were no weaknesses identified in the 

system review report. See Appendix A (page 22) for 

additional information.

An 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 

commenced during this reporting period. The primary objectives of the inspection are to determine 

if the FEC’s annual internal control review (ICR) 

process is adequately designed and operating effectively to meet the requirements of FMFIA/OMB 

Circular A-123, and to identify any process improvements (best practices). The assessment fieldwork 

was completed in March 2014 and OIG discussed 

the preliminary findings with OCFO management. A 

final report is expected to be issued early in the next 

reporting period.

During this reporting period, the OIG began an analysis to provide a cost estimate to the Commission 

and the Office of the Chief Information Officer 

(OCIO) for implementing the National Institute of 

Standards and Technology (NIST) information technology security standards and the requirements of 

the Federal Information Security Management Act 

(FISMA) of 2002. The FEC is legally exempt from 

the NIST standards and FISMA. Based on this exemption, the FEC’s OCIO has not implemented all 

of the government-wide IT security standards applicable to the agency’s business processes. 

During the FEC’s FY 2013 financial statement audit, 

the OIG and the OIG’s contracted financial statement auditors discussed weaknesses regarding the 

agency’s IT security controls with the Commission 

Chair at the time. The Chair expressed an interest 

in obtaining the cost of implementing the NIST IT 

security standards for the agency. The OIG expects 

to complete the cost analysis during the next reporting period. For detailed information pertaining to 

OIG Inspections and Special Reports, see the section titled OIG Inspections and Special Reports

(starting on page 9).

During this semiannual reporting period, six (6) new 

hotline complaints were opened and eight (8) hotline complaints were closed, including one (1) that 

was merged into an investigation. The OIG has two 

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

reporting period, including one (1) that was opened 

prior to the beginning of this reporting period. The 

closed hotline complaints included allegations of 

improper termination; contract fraud; contracting violations by employees; discrimination in hiring; employee misconduct; waste of resources; and failure 

to provide copies of requested public records that 

had been paid for. The improper termination case 

was referred to another agency, and the waste of 

resources was referred for OIG audit consideration. 

In the public records matter, a preliminary inquiry 

showed the payment never reached the agency and 

there was no withholding of public records. The other complaints were closed after preliminary inquiries 

found the allegations to be unsubstantiated or unsupported due to a lack of evidence or information 

upon which to proceed.

Five (5) investigations were open at the end of the 

reporting period, including four (4) that were opened 

in a prior reporting period and one (1) that was 

opened during this reporting period. No investigations were closed. For detailed information pertaining to hotline complaints and investigations, see the 

sections titled OIG Hotline Information (starting on 

page 11) or OIG Investigations (starting on page 

12).

The Inspector General serves as Vice Chair of the 

Council of the Inspectors General on Integrity and 

Efficiency (CIGIE). In this capacity, the IG supports 
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October 1, 2013 - March 31, 2014

the Chair, reviews various documents, attends 

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

come before CIGIE. The IG is also Chair of the 

Inspector General Recommendation Panel. 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. 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 

CIGIE, and all Committee Chairs. The Executive 

Council provides guidance on CIGIE initiated projects, the operating plans for each fiscal year, and 

the general business of CIGIE. The Council meets 

monthly to discuss issues that will affect CIGIE. The 

IG participated in various projects and events pertaining to CIGIE, this included attending a program 

sponsored by American University and participation 

in a program to enhance the capacity of the Iraqi 

Offices of Inspector General. See the section titled 

Council of the Inspectors General on Integrity 

and Efficiency (CIGIE) Activity (starting on page 

14).
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Office of Inspector General Semiannual Report to Congress

The Federal Election Commission

In 1975, Congress created the Federal Election 

Commission to administer and enforce the Federal 

Election Campaign Act (FECA). The duties of the 

FEC, an independent regulatory agency, are to disclose campaign finance information; enforce the provisions of the law; and oversee the public funding of 

Presidential elections.

The Commission consists of six members who are 

appointed by the President and confirmed by the 

Senate. Each member serves a six-year term, and 

two seats are subject to appointment every two 

years. By law, no more than three Commissioners 

can be members of the same political party, 

and at least four votes are required for any official Commission action. The Chairmanship of the 

Commission rotates among the members each year, 

with no member serving as Chairman more than 

once during his or her term. 

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.
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October 1, 2013 - March 31, 2014

Office of Inspector General.

The Inspector General Act of 1978 (P.L. 100-504), 

as amended, states that the Inspector General is 

responsible for: 1) conducting and supervising 

audits and investigations relating to the Federal 

Election Commission’s programs and operations; 2) 

detecting and preventing fraud, waste, and abuse 

of agency programs and operations while providing 

leadership and coordination; 3) recommending 

policies designed to promote economy, efficiency, 

and effectiveness of the establishment; and 4) 

keeping the Commission and Congress fully and 

currently informed about problems and deficiencies 

in FEC agency programs and operations, and the 

need for corrective action.
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Office of Inspector General Semiannual Report to Congress

OIG Audit Activity

Audit of the FEC’s Fiscal Year 2013 Financial 

Statements 

Assignment Number: OIG-13-02

Status: Released December 2013

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

FY2013FinancialStatementAuditReport.pdf

For the fifth consecutive year, the OIG continued a 

contract with Leon Snead & Co. (LSC) to conduct 

the FEC fiscal year (FY) 2013 annual financial statement audit in accordance with generally accepted 

auditing standards. Due to the Federal government 

shut-down during the beginning of this semiannual 

period, all FY 2013 financial statement audits due 

dates were extended to December 16, 2013. Audit 

fieldwork was completed on December 2, 2013 and 

LSC provided the draft audit report to the OIG for 

review, the report was then issued to FEC management for review and comment. The exit conference 

was held on December 10, 2013, and the final audit 

report was issued on December 12, 2013 containing 

twenty-seven (27) recommendations to improve information technology security at the FEC. 

In addition to the final audit report, LSC provided a 

management letter to FEC management in regards 

to the agency’s annual internal control review and 

annual assurance letter that are required by the FEC 

to comply with OMB Circular A-123, Management’s 

Responsibility for Internal Control. LSC reported to 

management that based on the LSC auditors’ review 

of the Office of the Chief Financial Officer’s (OCFO) 

internal control vulnerability assessment and assurance letter, the OCFO “...did not adequately address internal control deficiencies contained in the 

agency’s financial statement audit reports, or internal control risks...” identified by an independent contractor to adhere to OMB Circular A-123, Section II.B, 

Risk Assessment, which states:

“Management should also consider previous 

findings; e.g., auditor identified, internal management reviews, or noncompliance with laws and 

regulations when identifying risks. Identified risks 

should then be analyzed for their potential effect 

or impact on the agency.”

Included in the OIG’s contract for the annual financial 

statement audit is a Commission briefing that would 

be held at the end of the audit if deemed necessary. 

Based on the significant IT security issues reported 

by the auditors, and the number of repeat findings 

identified during the financial statement audits since 

FY 2004, the OIG determined that a Commission 

briefing was necessary for FY 2013. LSC and the 

OIG briefed the six (6) Commissioners on February 

4, 2014. This briefing allowed the Commissioners an 

opportunity to ask questions regarding the identified 

issues and gain a better understanding of their significance and impact on the agency.
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October 1, 2013 - March 31, 2014

Office of Inspector General’s Review of 

Outstanding Recommendations as of December 

2013

Assignment Number: OIG-14-02

Status: Released February 2014

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

ReviewofOutstandingRecommendationsasof

December2013.pdf

During this semiannual reporting period, the 

OIG released the Review of Outstanding 

Recommendations as of December 2013 report to 

the Commission detailing the follow-up work conducted by the OIG and the status of the outstanding 

OIG audit and inspection recommendations. The 

report covered seven (7) OIG assignments totaling 

ninety-six (96) outstanding recommendations contained in the following reports:

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

Transit Benefit Program;

•	 Audit of the Commission’s Property 

Management Controls;

•	 Follow-up Audit of Privacy and Data Protection; 

•	 Follow-up Audit of Procurement and Contract 

Management; 

•	 Inspection of the FEC’s Kastle Key Program; 

•	 Quality Assessment Audit of the Audit Division; 

and

•	 Inspection of the FEC’s Disaster Recovery 

Plan and Continuity of Operations Plans.

Based on the follow-up work performed, the OIG 

was able to collectively close twenty (20) outstanding recommendations. Adequate implementation 

of these twenty (20) outstanding recommendations 

by management fully resolved the findings for two 

(2) audits, Audit Follow-up Review of the FEC’s 

Employee Transit Benefit Program (released 2009); 

Quality Assessment Audit of the FEC’s Audit Division

(released 2012); and one inspection, Inspection of 

the FEC’s Kastle Key Program (released 2011). 

In addition, the OIG issued a memorandum on 

February 10, 2014 to the Chief Information Officer 

(CIO) during this review period expressing the OIG’s 

concern with the lack of progress from the Office of 

the CIO to resolve outstanding recommendations 

contained in the Audit of the Commission’s Property 

Management Controls report. Management had 

originally stated during the OIG’s audit follow up that 

no further action would be taken to resolve the outstanding issues. As a result, the OIG’s memorandum dated February 10, 2014 requested a written 

statement from the CIO to accept the risks of not 

implementing the outstanding recommendations for 

the audit, in order for the OIG to properly close the 

recommendations. 

On March 4, 2014 the CIO provided a written response to the OIG’s memorandum. The OIG is in 

the process of reviewing the response from the CIO 

to determine if the outstanding recommendations 

should be closed based on management’s risk acceptance or if corrective action has been implemented, and a follow up review is necessary. 

Additional follow up work conducted by the OIG 

during the quarter ending March 31, 2014

Subsequent to the release of the December 2013 

Review of Outstanding Audit Recommendations report, the OIG followed up with the Acting Director of 

the Office of Human Resources regarding outstanding recommendations in the Audit of the Federal 

Election Commission’s Office of Human Resources 

(OHR) which was issued July 2013. Based on the 

OIG Audit Follow-up Activity
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Office of Inspector General Semiannual Report to Congress

OIG’s review of documentation to support corrective 

action by OHR, we were able to close nine (9) of the 

twenty-six (26) outstanding audit recommendations. 

In total, due to adequate corrective actions implemented by management, the OIG closed twentynine (29) outstanding recommendations during this 

semiannual reporting period.
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October 1, 2013 - March 31, 2014

OIG Inspections and Special Reports 

Office of Equal Employment Opportunity 

Inspection 

Assignment Number: OIG -12-07

Status: In Progress

The OIG completed fieldwork for an inspection of 

the FEC’s Office of Equal Opportunity Employment 

(OEEO) in the previous reporting period. 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. 

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 of complaint statistics, as required by the 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 that 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) to provide 

FEC management with an understanding of trends in 

reported allegations of violations of EEO laws. 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 necessary records and case files have been reviewed by the OIG, and a survey has been conducted of FEC employees. The field work for the OEEO 

inspection has been completed, but high priority 

investigations have required a reassignment of resources and delayed drafting of the report. Once the 

investigations are complete and resources can be 

tasked back to the inspection, the OIG will meet with 

the OEEO and an inspection report will be finalized 

and published.

Inspection of the Federal Election Commission’s 

(FEC) Compliance with FMFIA/OMB Circular 

A-123

Assignment Number: OIG-14-01

Status: In Progress

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 commenced 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 are to assess whether the FEC is complying with the annual 

assessment requirement of FMFIA, to determine if 

the FEC’s annual internal control review (ICR) process is adequately designed and operating effectively to meet the requirements of FMFIA/OMB Circular 

A-123, and to identify any process improvements 

(best practices). 
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Office of Inspector General Semiannual Report to Congress

On December 7, 2013, the OIG sent out an inspection notification to management and then met with 

the Acting Chief Financial Officer (CFO) and the 

Acting Accounting Director on January 2, 2014 to 

discuss the purpose of the inspection and to discuss 

the preliminary scope for the inspection. 

To gain an understanding of FEC’s internal control program, the OIG reviewed FEC’s policy and 

procedures related to the program and researched 

all applicable laws, regulations, and guidance. OIG 

reviewed all internal control documentation submitted by FEC program offices to support the annual 

assessments for FYs 2012 and 2013, and to ensure program offices are complying with internal 

policies and procedures. OIG also interviewed five 

(5) program managers to gain an understanding of 

their offices’ annual review process. The OIG then 

evaluated FEC internal control processes against 

the FMFIA/OMB Circular A-123 requirements to determine if the FEC process is adequately designed 

for compliance. The assessment was completed 

in March 2014 and OIG has discussed preliminary 

findings with OCFO management. 

The OIG is in the process of completing the draft 

report and the OIG expects to publish the inspection 

report during the next reporting period.

Cost Analysis of the FEC’s Implementation 

of the National Institute of Standards and 

Technology’s Security Controls and the Federal 

Information Security Management Act of 2002 

Assignment Number: OIG-14-03

Status: In Progress

The FEC is legally exempt from the Federal 

Information Security Management Act (FISMA) of 

2002. Based on this exemption, the FEC’s Office of 

the Chief Information Officer (OCIO) has not implemented all of the government-wide IT security standards applicable to the agency’s business processes. The OIG has reported for several years that the 

agency should formally adopt the National Institute 

of Standards and Technology (NIST) minimum IT 

security standards to improve the FEC’s IT security 

program.

During the FEC’s FY 2013 financial statement audit, 

the OIG and the OIG’s contracted financial statement auditors discussed the weaknesses regarding 

the agency’s IT security controls with the FEC’s FY 

2013 Commission Chair at the time; this discussion 

occurred during a meeting required by Statement of 

Auditing Standards (SAS) 114: Communication With 

Those Charged with Governance. At this meeting, 

the prior Commission Chair expressed an interest in 

obtaining the cost of implementing the NIST IT security standards for the agency; therefore, the OIG 

procured contract services to conduct a cost analysis to provide a cost estimate to the Commission 

and the OCIO for implementing the NIST standards 

and the requirements of FISMA. 

The OIG requested proposals for the contract, and 

after review, awarded the contract to Your Internal 

Controls. The planning meeting for the assignment 

was held on March 26, 2014 to discuss a draft work 

plan to conduct the cost analysis. 
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October 1, 2013 - March 31, 2014

The OIG hotline exists to enable FEC employees, 

FEC contractors, and the public to have direct and 

confidential contact with the OIG. All allegations or 

referrals of fraud, waste, abuse, mismanagement, 

and misconduct involving FEC employees, contractors, programs, operations, property, or funds received through any means are termed “hotline complaints” per OIG policy. Once a hotline complaint 

has been received, a preliminary inquiry is conducted to determine whether the hotline complaint will 

be closed with no further action taken, referred to 

management or another agency, or an investigation 

will be initiated. 

The OIG considers many factors when evaluating 

whether to open an investigation based on a hotline complaint, and acknowledges that every hotline 

complaint received by the OIG cannot be investigated and in many cases do not merit investigation. OIG policy requires that hotline complaints be 

evaluated on certain criteria, including the merits of 

an allegation, the availability of evidence, and the 

existing priorities, commitments, and resources of 

the OIG. Under this policy, hotline complaints are 

classified as either high or low priority complaints. 

High priority complaints are investigated and low 

priority complaints are either closed with no action 

or referred to the appropriate official for possible further review. Hotline evaluation decisions are made 

by the Chief Investigator, with concurrence from the 

Deputy IG.

During this semiannual reporting period, six (6) new 

hotline complaints were opened and eight (8) hotline complaints were closed, including one (1) that 

was merged into an investigation. The OIG has two 

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

reporting period, including one (1) that was opened 

prior to the beginning of this reporting period. The 

closed hotline complaints included allegations of 

improper termination; contract fraud; contracting violations by employees; discrimination in hiring; employee misconduct; waste of resources; and failure 

to provide copies of requested public records that 

had been paid for. The improper termination case 

was referred to another agency, and the waste of 

resources was referred for OIG audit consideration. 

In the public records matter, a preliminary inquiry 

showed the payment never reached the agency and 

there was no withholding of public records. The other complaints were closed after preliminary inquiries 

found the allegations to be unsubstantiated or unsupported due to a lack of evidence or information 

upon which to proceed.

The OIG frequently receives reports and allegations 

which are misdirected complaints that should have 

been routed to the Office of Complaints and Legal 

Administration within the Office of General Counsel 

(OGC), are outside the jurisdiction of the OIG or 

the FEC, or are facially unsubstantiated, meritless or invalid. For example, Section 437g of the 

Federal Election Campaign Act of 1971, as amended (FECA), sets forth strict requirements for reporting alleged violations of FECA, and FEC regulations 

direct that such complaints be filed directly by the 

complainant and processed through OGC; still, the 

OIG regularly receives complaints of alleged FECA 

violations, many of which are not legally compliant. 

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

alleging FECA violations, as the OIG cannot simply 

route FECA complaints to OGC.

 OIG Hotline Information
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Office of Inspector General Semiannual Report to Congress

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. 

Five (5) investigations were open at the end of the 

reporting period, including four (4) that were opened 

in a prior reporting period and one (1) that was 

opened during this reporting period. No investigations were closed.

OIG Investigations
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October 1, 2013 - March 31, 2014

Leadership Alumni Community of Practice 

(CoP). Various documents were reviewed, to 

include the draft mission statement and charter for the CoP, and several examples of established CoPs. The CIGIE Leadership CoP 

Charter was finalized and officially introduced 

at the March 5, 2014 CIGIE Professional 

Development Committee meeting.

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: 

•	 At the start of this reporting period, the 

FEC welcomed two new members to the 

Commission. Lee Goodman and Ann Ravel 

were sworn in as Commissioners in late 

October 2013. Briefing books were compiled 

and the IG met with the new Commissioners to 

provide an overview of the general operating 

procedures of the OIG.

•	 The OIG prepared the annual IG assessment of 

the FEC’s management and performance challenges. For FY 2013, this included information 

technology security; governance framework; 

and human capital management / human resources operations. 

•	 The OIG reviewed the FEC’s Workplace 

Recommendations report and provided the administrative officer with comments and information pertaining to OIG space and resource requirements. The OIG also attended the Senior 

Leader meeting on space requirements.

•	 A member of the OIG participated in several meetings to discuss creating the CIGIE 
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Office of Inspector General Semiannual Report to Congress

Council of the Inspectors General on 

Integrity and Efficiency (CIGIE) Activity

The Inspector General serves as Vice Chair of the 

Council of the Inspectors General on Integrity and 

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

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

come before CIGIE. The IG is also Chair of the 

Inspector General Recommendation Panel. 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. 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 

CIGIE, and all Committee Chairs. The Executive 

Council provides guidance on CIGIE initiated projects, the operating plans for each fiscal year, and 

the general business of CIGIE. The Council meets 

monthly to discuss issues that will affect CIGIE. 

During this reporting period, the IG participated in 

various projects and events pertaining to CIGIE, this 

includes: 

•	 “Lunch with the IG” a program conducted as 

part of the New Leaders program sponsored by 

American University; 

•	 Attended a meeting to discuss the Integrity 

Committee process; Met with the attorney for 

the Denali Commission, Executive Director for 

CIGIE, and the IG of the Appalachian Regional 

Commission to discuss the Denali Commission 

vacant IG position. 

•	 The IG participated in a program implemented by the United Nations Development 

Programme (UNDP) Iraq and funded by the 

U.S. Department of State to enhance the 

capacity of the Iraqi Offices of Inspectors 

General. The purpose of the program was to 

expose the Iraqi IGs to the work of the Federal 

Inspectors General, to exchange information, 

and benefit from the experience of the Federal 

Inspectors General. The IG conducted a presentation at this meeting on IGs, the Council of 

Inspectors General on Integrity and Efficiency, 

and its predecessors. 

•	 The IG also took part in a joint CIGIE /Iraqi IG 

meeting at the Department of State and attended a reception hosted by the Iraqi Ambassador 

in honor of the Iraqi IGs.

Lynne A. McFarland, Inspector General, Federal 

Election Commission, closing out the joint CIGIE/Iraqi 

IGs meeting at the U.S. Department of State
15

October 1, 2013 - March 31, 2014

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

past six months – October 1, 2013 through March 31, 2014.

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

personal visits to the OIG.

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

5,175 39 5,124 12

OIG Contacts
16

Office of Inspector General Semiannual Report to Congress

List of Training, Meetings

and Conferences

The chart listed below depicts training, meetings, programs, seminars, and/or conferences attended by the 

Inspector General and/or the OIG staff for the period April 1, 2013 – September 30, 2013:

MEETINGS:

Host / Sponsor Topic / Subject

Council of Inspectors General on Integrity

and Efficiency 

Weekly Chair/Vice Chair Meetings

Monthly Meetings

Monthly Executive Council Meetings

Professional Development Committee’s Leadership 

Development Subcommittee Meetings

Joint CIGIE/Iraqi IG Meeting

CIGIE Awards Ceremony

Council of Counsels to the Inspectors General Monthly Meetings

Small OIG Working Group Meeting

Assistant Inspector General for Investigations Quarterly Meetings

Federal Election Commission

Bi-monthy Directors' Meetings

Finance Committee Meetings

Managers' Meeting

FEC / Office of Inspector General Bi-weekly Staff Meetings
17

October 1, 2013 - March 31, 2014

TRAINING/CONFERENCES:

Host / Sponsor Topic / Subject

Association of Certified Fraud Examiners Investigative Techniques on Corporate Fraud and Internal 

Investigations

Association of Inspectors General AIG – 2013 Fall Conference

Audit Net Using Excel to Perform Analytics

Institute of Internal Auditors “So you Want to be a CAE?”

CCH TeamMate 2013 TeamMate User Forum Conference

Potomac Forum, LTD IT Investment Management Governance in the Sequestration 

and Post Sequestration Environment

Department of Homeland Security/Federal 

Law Enforcement Training Center Understanding the Inspection Search

George Washington University - Center for 

Excellence in Public Leadership Government Mobility: Catalyst for Change

Partnership for Public Service

Dealing with Data

Driving Change

Engaging Employees Through Appreciation

Federal Election Commission

Email Management Workshop

Maximizing Diversity and Inclusion: The Most Important 

Issue of the FEC

FEC Biennial Survey Training and EEO Policy Review

EEO Webinar: Calming Upset People with Empathy, 

Attention and Respect

Security Awareness Training for Executive Level Staff

Transit Subsidy Benefit Training

Privacy Training

Ethics Annual Training

FEC Publisher (contact manager)

National Seminars / Skillpath Professional Development/Leadership

Seminars/Webinars 
18

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 13

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) 21

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

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

Section 5(a)(7) Summary of Significant Reports 6

Section 5(a)(8) Questioned and Unsupported Costs (Table I) 19

Section 5(a)(9) Recommendations that Funds be put to Better Use (Table II) 20

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
19

October 1, 2013 - March 31, 2014

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
20

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
21

October 1, 2013 - March 31, 2014

Table III

SUMMARY OF AUDIT REPORTS WITH CORRECTIVE ACTIONS OUTSTANDING FOR 

MORE THAN SIX MONTHS

Recommendations

Report Title Report 

Number

Issue 

Date

Number Closed Open

Audit Follow-up Review of the FEC’s Employee 

Transit Benefit Program

OIG-08-03 07/09 51 51 0

Audit of the Commission’s Property Management 

Controls 

OIG-09-02 03/10 36 29 7

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 15 30

Inspection of the Federal Election Commission’s 

Kastle Key Program

OIG-11-02 12/11 15 15 0

Quality Assessment Audit of the FEC’s Audit 

Division

OIG-12-01 09/12 11 11 0

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 93
22

Office of Inspector General Semiannual Report to Congress

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.

In accordance with the Council of Inspectors General on Integrity and Efficiency (CIGIE) Audit Peer Review 

schedule, the United States International Trade Commission (ITC) Office of Inspector General conducted an 

audit peer review of the Federal Election Commission OIG. A final system review report was issued to the FEC 

OIG February 11, 2014 and this office received a pass rating. There were no weaknesses or recommendations 

identified in the system review report.

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 September 30, 2013. The results of our 

peer review of the NEH OIG resulted in one (1) recommendation for improvement. We identified that the NEH 

Inspector General (IG) reports administratively to the Chairman of the National Endowment for the Humanities. 

Because the 26 members of the National Council of the Humanities are not involved in managing and/or overseeing NEH’s daily operations and only meet several times a year, NEH did not believe it was practical for the 

IG to report directly to the full National Council. We recommended that NEH OIG implement additional procedures to ensure the NEH OIG is adhering to the requirements specified in the IG Act, as amended by DoddFrank, which stipulates that the NEH IG shall report only to the National Council on the Humanities. 

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 in April 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 planned to address the recommendation but has not yet 

been fully implemented as of March 31, 2014. The FEC OIG will follow-up with NEH IG during the next reporting period to determine if the recommendation has been fully implemented. 

Appendix 

Peer Review Activity
 

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