Semiannual Report to Congress

April 1, 2010 – September 30, 2010

November 2010

Federal Election Commission - Office of Inspector General

999 E Street, N.W. Suite 940, Washington, D.C. 20463
April 1, 2010 - September 30, 2010

i

November 22, 2010

The Honorable Nancy Pelosi

Speaker of the House of Representatives

Washington, D.C. 20515

Dear Madam Speaker:

Pursuant to the Inspector General Act of 1978, as amended, the Federal Election 

Commission submits the Office of Inspector General’s Semiannual Report to Congress. The 

report summarizes the activity of the FEC Office of Inspector General (“OIG”) from April 1, 

2010 through September 30, 2010. During this reporting period, the FEC’s Inspector General 

commenced an audit of the FEC’s fiscal year 2010 financial statements. The audit was 

completed on time and management issued the final Performance and Accountability Report 

on November 15, 2010. We are pleased to report that the Commission received an unqualified 

opinion from the Inspector General’s independent auditors. We will provide additional 

comments on this audit in the next Semiannual Report to Congress. 

During the semiannual period, the OIG contracted with independent auditors to 

conduct follow-up audits on two previously completed audits: the 2007 Performance Audit of 

Privacy and Data Protection and the 2008 Audit of Procurement and Contract Management. 

Reports on these audits are expected in the next semiannual period. 

The Commission appreciates and shares the Inspector General’s commitment 

to sound financial and management practices, and we anticipate a continued cooperative 

working relationship as management takes appropriate measures to improve operations of the 

Commission. 

Copies of the Semiannual Report are being provided to the Chairman and Ranking 

Members of the FEC’s oversight committees.

On behalf of the Commission,

Matthew S. Petersen

Chairman

Enclosure

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

OFFICE OF THE CHAIRMAN
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April 1, 2010 - September 30, 2010

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April 1, 2010 - September 30, 2010

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FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

Office of Inspector General

A Message from the Inspector General

The Office of Inspector General has had a very successful six months. We surveyed the 

Federal Election Commission (FEC) staff for input into our annual work plan. The office 

also conducted our annual brainstorming session and using both of these events, 

produced our office work plan for Fiscal Year 2011. The work plan contains those areas 

that the OIG will be focusing resources on in the upcoming fiscal year.

We also started the FY 2010 Financial Statement Audit and two follow up audits, all of 

which are being conducted by independent accounting firms under the monitoring of the 

OIG. The OIG has also commenced a peer review of another Office of Inspector 

General. All of these projects will be completed during the next semiannual reporting 

period.

The office has continued its outreach efforts to the staff of the Commission. We have 

updated the presentation the Counsel to the Inspector General conducts for all new FEC 

employees and in the upcoming year are planning on attending the various offices’ and 

divisions’ regular staff meetings to provide information and answer questions about the 

OIG and its work.

As always, the work of the OIG could not be accomplished without the dedication and 

hard work of the OIG staff. I appreciate the time and effort they put into the work they 

do and the care with which they do their jobs.

Lynne A. McFarland

Inspector General

Federal Election Commission

October 29, 2010
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April 1, 2010 - September 30, 2010

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Executive Summary 1

The Federal Election Commission 3

Office of Inspector General 4

OIG Audit Activity 5

Audit of the Federal Election Commission’s Fiscal Year 2010 Financial Statements 5

OIG Audit Follow-up Activity 6

Follow-Up Audit of the 2007 Performance Audit of Privacy and Data Protection 6

Follow-up Audit of the 2008 Audit of Procurement and Contract Management 6

OIG Hotline Information 8

OIG Investigations 9

Additional OIG Activity 10

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 – Inspector General Issued Reports With 17 

Questioned Cost

Table II – Inspector General Issued Reports With 18

Recommendations That Funds Be Put To Better Use

Table III – Summary Of Audit Reports With 19

Corrective Actions Outstanding For More Than Six Months

OIG Fiscal Year 2011 Work Plan 21

Table of Contents
Office of Inspector General Semiannual Report to Congress

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April 1, 2010 - September 30, 2010

1

Executive Summary

The OIG began a Peer Review of the U.S. 

Commodity Futures Trading Commission (CFTC) 

OIG (OIG-10-04) during this semiannual reporting 

period. Inspectors General conduct audits in accordance with generally accepted government auditing 

standards (GAGAS). Audit organizations conducting audits in accordance with 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. The peer review 

entrance conference was held on July 16, 2010, and 

fieldwork was performed August 3 through 20, 2010. 

A discussion meeting was held with the CFTC IG 

and staff on August 27, 2010 to communicate the initial findings noted during the peer review. As of the 

close of this reporting period, the FEC OIG was in 

the process of drafting the peer review draft report 

and plans to issue the final report to the CFTC OIG 

and complete the peer review in the next reporting 

period.

In September 2010, the OIG awarded two contracts 

to the IPA firm of Cherry, Bekaert & Holland (CBH) 

LLP. The OIG contracted with CBH LLP to conduct 

follow-up audits on two previously completed OIG 

audits: 1) OIG-07-02, 2007 Performance Audit 

of Privacy and Data Protection, and 2) OIG-08-

02, 2008 Audit of Procurement and Contract 

Management. The purpose of the follow-up audits 

will be to determine whether management implemented the agreed actions for each audit recommendation contained in the audit reports and whether 

each audit finding has been fully resolved. A kick-off 

meeting was held with CBH, OIG and FEC management in late September 2010 and planning for 

fieldwork is underway. The final report for the Privacy 

and Data Protection Follow-up Audit is scheduled 

The Inspector General Act of 1978, as amended, 

states that the Inspector General is responsible for 

conducting audits, inspections, investigations, and 

recommending policies and procedures that promote economic, efficient, and effective use of agency 

resources and programs that 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 (audits, hotline, and investigations) can be found in subsequent sections of 

this report.

The Audit of the FEC’s Fiscal Year 2010 Financial 

Statements (OIG-10-01) commenced during this 

reporting period. Under a contract monitored by the 

OIG, the independent public accounting (IPA) firm 

of Leon Snead & Company (LSC) is responsible for 

performing the audit of the FEC’s FY 2010 financial statements. The contract requires LSC to issue 

an opinion regarding whether the FEC’s financial 

statements and supplemental information are fairly 

presented in all material respects in accordance with 

Generally Accepted Accounting Principles. In addition, LSC audits internal controls and compliance 

with laws and regulations for matters relevant to the 

financial statements. The 2010 financial statement 

audit report is scheduled to be issued by November 

15, 2010.
Office of Inspector General Semiannual Report to Congress

2

to be issued by January 30, 2011; the report for the 

Procurement and Contract Management Follow-up 

Audit by March 31, 2011.

For detailed information regarding the above audits 

and audit follow-up activity, see the section entitled 

OIG Audit Activity (starting on page 5); and OIG 

Audit Follow-up Activity (starting on page 6).

The Inspector General continues to be very involved 

in the Council of Inspectors General on Integrity 

and Efficiency (CIGIE). Ms. McFarland is a member of the Executive Council, which is composed 

of the Chair, Vice Chair, the past Vice Chair of the 

President’s Council on Integrity and Efficiency, all 

Committee Chairmen and one member appointed by 

the Chair. The Executive Council provides guidance 

on CIGIE initiated projects and the operating plans 

for each fiscal year. The Council meets monthly to 

discuss issues that will affect CIGIE.

The Inspector General also co-chairs the Inspector 

General Candidate Recommendation Panel with 

the Justice Department Inspector General. 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. In addition, 

the Inspector General is Vice Chair of the CIGIE 

Professional Development Committee. This committee is charged with ensuring that there is strong, 

relevant training for the Inspector General community. For more information on the IG’s involvement with CIGIE, see the section entitled Council of 

the Inspectors General on Integrity and Efficiency

(CIGIE) Activity (located on page 12).

As of the end of this reporting period, there are 

two hotline complaints open and in various stages 

(pending, in progress); six new hotline complaints 

were opened; and thirteen hotline complaints were 

closed during this semiannual reporting period. In 

addition, there are two open investigations and five 

investigations were closed this reporting period. For 

more information pertaining to the hotline issues, 

see the section entitled OIG Hotline Information (located on page 8); for more information on investigations, see the section entitled OIG Investigations (located on page 9).
April 1, 2010 - September 30, 2010

3

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 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 – Matthew 

S. Petersen, Chairman; Cynthia L. Bauerly, Vice 

Chairman; and Commissioners; Caroline C. Hunter; 

Donald F. McGahn II; Steven T. Walther, and Ellen L. 

Weintraub.
Office of Inspector General Semiannual Report to Congress

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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 agency; 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.
April 1, 2010 - September 30, 2010

5

Audit of the Federal Election Commission’s 

Fiscal Year 2010 Financial Statements

Assignment Number: OIG-10-01

Status: In Progress

The Chief Financial Officers Act of 1990 (Public Law 

101-576, commonly referred to as the “CFO Act”), as 

amended, requires the FEC OIG or an independent 

external auditor, as determined by the Inspector 

General, to audit the agency financial statements. 

Under a contract monitored by the OIG, Leon Snead 

& Company (LSC), an independent certified public 

accounting and management consulting firm was 

awarded a five year contract to audit the FEC’s financial statements beginning in FY 2009.

LSC was contracted to conduct the financial 

statement audit following Generally Accepted 

Government Auditing Standards (GAGAS) and 

Office of Management and Budget (OMB) Bulletin 

No. 07-04, Audit Requirements for Federal Financial 

Statements, as revised. The audit contract requires 

LSC to issue an opinion regarding whether the 

FEC’s financial statements and supplemental information are fairly presented in all material respects 

in accordance with Generally Accepted Accounting 

Principles. In addition, LSC audits internal controls 

and compliance with laws and regulations for matters relevant to the financial statements. The audit 

is completed in four phases: planning; review and 

evaluation; testing (interim and final); and reporting 

and work paper delivery.

The OIG is responsible for oversight of the financial statement audit, which includes: 1) reviewing 

the auditors’ approach and planning of the audit; 2) 

evaluating the qualifications and independence of 

the auditors; 3) monitoring the work of the auditors; 

OIG Audit Activity

4) examining audit documents and reports to ensure 

compliance with GAGAS, and OMB Bulletin No. 07-

04; and 5) other procedures the OIG deems necessary to oversee the contract and audit.

The audit entrance conference was held on May 5, 

2010. Representatives from the OIG, LSC, and FEC 

attended the entrance conference and discussed the 

audit scope, objectives and ways to ensure an efficient and effective audit process. An audit timeline 

was established, along with requests to management for necessary documentation and information 

concerning the financial statements. The planning 

and interim audit testing phases were completed by 

LSC during this semiannual period. The OIG reviewed LSC’s audit planning methodology and interim audit testing results, and provided comments 

to LSC. In addition, LSC prepared several notices of 

findings and recommendations which were reviewed 

by the OIG and then issued to FEC management for 

a response.

The OIG coordinated and attended regular biweekly 

audit status meetings with LSC and FEC management during the audit; more frequent meetings will 

be held in the month of October as the audit nears 

completion. In addition, the OIG coordinated and attended meetings with LSC and the FEC’s Chairman 

and Vice Chair to discuss the audit objectives and 

progress of the audit. The 2010 financial statement 

audit report is scheduled to be issued by November 

15, 2010.
Office of Inspector General Semiannual Report to Congress

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Follow-Up Audit of the 2007 Performance Audit of 

Privacy and Data Protection

Follow-up Audit of the 2008 Audit of Procurement 

and Contract Management

Assignment Numbers: OIG – 10-02 

 OIG – 10-03

Status: In Progress

In September 2010, the OIG awarded two contracts to the IPA firm of Cherry, Bekaert & Holland 

(CBH) LLP. The OIG contracted with CBH LLP to 

conduct follow-up audits on two previously completed OIG audits: 1) OIG-07-02, 2007 Performance 

Audit of Privacy and Data Protection, and 2) OIG08-02, 2008 Audit of Procurement and Contract 

Management. 

The first audit contract will focus on determining 

whether the FEC has implemented audit recommendations contained in previously issued OIG audit/

inspection reports on privacy. Specifically, in 2006, 

the OIG contracted with an IPA to conduct an inspection of personally identifiable information within 

the FEC. The 2006 Inspection Report on Personally 

Identifiable Information provided FEC management 

with thirteen recommendations to correct privacy 

weaknesses identified during the review. In addition, in 2007 the OIG contracted with a different IPA 

to conduct a performance audit of privacy and data 

protection policies and procedures and, specifically, to determine if the FEC is complying with privacy requirements contained in section 522 of the 

Consolidated Appropriations Act, 2005. The 2007 

audit identified seven significant issues and made 

thirteen recommendations to address the audit findings, however FEC management did not agree with 

two findings (six recommendations) included in the 

OIG Audit Follow-up Activity

report. Also, the 2007 audit included a follow-up 

review of the thirteen prior-year recommendations 

contained in the OIG’s 2006 Inspection Report on 

Personally Identifiable Information; the auditors 

determined that seven recommendations from the 

2006 inspection were fully implemented (closed) 

and six remained open. 

The 2010 contracted follow-up audit will determine 

whether management implemented the outstanding 

agreed actions included in the 2007 Performance 

Audit of Privacy and Data Protection and the 

2006 Inspection Report on Personally Identifiable 

Information. For the two findings and six recommendations where management did not agree, followup testing will be performed to determine whether 

revised business processes and controls have addressed the findings and recommendations to the 

extent that they may be classified as fully implemented (closed).

The second audit contract awarded to CBH will determine whether the FEC has implemented the recommendations contained in a previously issued OIG 

procurement audit. Specifically, in 2008 the OIG 

contracted with an IPA to conduct a performance audit of the FEC’s procurement and contract management. The audit included a review of approximately 

$27.6 million of various types of procurement instruments (e.g. contracts, purchase orders, blanket purchase agreements, and one specified interagency 

agreement) awarded/executed by the Procurement 

and Contracting Office in fiscal years 2006 through 

2008. The audit of the FEC’s procurement and 

contract management activities identified nine significant issues that prevent the Procurement Office 

from achieving compliant and effective functions and 

made fifteen recommendations. Management prepared a corrective action plan (CAP) to address the 

findings and recommendations included in the 2008 
April 1, 2010 - September 30, 2010

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Audit of Procurement and Contract Management 

Report. The contracted follow-up audit will determine whether management implemented the agreed 

actions for the fifteen recommendations and whether 

each audit finding has been fully resolved.

In order to procure the contracted follow-up audit 

services from an IPA, the OIG prepared two statements of work and submitted the requests for proposals to prospective contractors. Six IPAs submitted twelve proposals: all firms submitted separate 

proposals to perform both of the follow-up audits. A 

panel of OIG staff members reviewed and scored 

the proposals, and following the completion of the 

review of the proposals, contracts for the two audits 

were awarded to Cherry, Bekaert & Holland LLP 

(CBH). A kick-off meeting was held with CBH, OIG 

and FEC management in late September 2010 and 

planning for fieldwork is underway. The final report 

for the Privacy and Data Protection Follow-up Audit 

is expected to be issued by January 30, 2011 and 

the final report for the Procurement and Contract 

Management Follow-up Audit by March 31, 2011.
Office of Inspector General Semiannual Report to Congress

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or in progress); six new hotline complaints were 

opened; and thirteen hotline complaints were closed 

during this semiannual reporting period.

OIG hotline Information:

The Office of Inspector General (OIG) established a 

hotline to enable employees and others to have direct and confidential contact with the OIG. The OIG 

receives complaints through various means such 

as U.S. mail, telephone, e-mail, fax, inter-office mail, 

and personal visits to the OIG. Once a hotline (HL) 

complaint has been received, a preliminary inquiry 

is conducted. When an evaluation has been completed, the hotline complaint may be closed with no 

further action taken; referred to management or another agency; or an investigation may be initiated.

An OIG hotline complaint policy was developed to 

guide the OIG’s effort to ensure consistency and 

fairness in its case initiation decisions; and serves 

as a guide for the OIG to manage the increased 

case load in the number of hotline complaints. The 

policy defines “hotline complaints” as allegations or 

referrals of fraud, waste, abuse, mismanagement, 

and misconduct involving FEC employees/contractors, programs, operations, property, or funds.

The OIG considers many factors when evaluating 

whether to open an investigation based on a hotline 

complaint, and acknowledges that every allegation 

or complaint received by the OIG cannot be investigated. The policy includes evaluation considerations, 

such as the merits of an allegation; the availability of 

evidence; and the existing priorities, commitments, 

and resources of the OIG. Under this revised policy, 

hotline complaints shall be 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 an appropriate official for possible further review. Under this 

policy, hotline evaluation decisions are made by the 

Chief Investigator, with concurrence from the Deputy 

IG.

As this reporting period concludes, the OIG has two 

open hotline complaints in various stages (pending 
April 1, 2010 - September 30, 2010

9

OIG investigations:

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. The OIG conducts a detailed examination or inquiry into issues brought to our attention by 

various sources. 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.

As of the end of the semiannual reporting period, 

there are two open investigations and five investigations were closed during this reporting period.
Office of Inspector General Semiannual Report to Congress

10

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. In addition, the Inspector General 

routinely reads all Commission agenda items. The 

Inspector General 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:

• The OIG conducts audits in accordance with 

generally accepted government auditing standards (GAGAS). Audit organizations conducting audits in accordance with GAGAS are 

required to have an independent peer review, 

at least every three years, of their quality control system. This reporting period the FEC OIG 

commenced an audit peer review of the U.S. 

Commodity Futures Trading Commission OIG 

as part of the CIGIE audit peer review program. The FEC OIG expects to finalize the peer 

review of the CFTC OIG in the next reporting 

period. The FEC OIG is scheduled to be peer 

reviewed in FY 2011.

• The OIG responded to Representative Darrell 

Issa’s correspondence regarding outstanding 

recommendations. The OIG created a spreadsheet listing all outstanding recommendations 

and forwarded the results to Representative 

Issa’s office (141 open recommendations that 

have not yet been implemented; 35 were less 

than 6 months old as of 04/16/10).

• The OIG met with representatives from the 

Government Accountability Office OIG and 

Office of Personnel Management Federal 

Investigative Services regarding background 

information relevant to their investigations. The 

OIG also responded to GAO’s Statement of 

Facts referring to the work GAO is conducting concerning the Association of Community 

Organizations for Reform Now (ACORN).

• The IG participated in an Association of 

Government Accountants (AGA) roundtable 

discussion for accounting professionals early 

in their careers. Topics of discussion included 

career choices/decisions, and the effect those 

choices can have on one’s career, followed 

by a question and answer session from the 

participants.

• The OIG completed its annual work plan, the 

work plan includes a description of audits, inspections, investigative and special projects 

planned for fiscal year 2011. In addition, the 

OIG updated the office’s strategic plan for the 

period 2010-2015.

• The OIG participated in a one day Continuity of 

Operations Plan (COOP) / Disaster Recovery 

Plan (DRP) workshop. The OIG reviewed and 

provided comments on the written business 

impact analysis, one of the deliverables from 

the COOP/DRP workshop. The results of the 

workshop will be used to create recovery plans 

for the OIG to ensure maximum continuity of 

operations for the office and its services to the 

agency.

• The OIG prepared the annual assessment 

of the most serious management and performance challenges facing the FEC. The 

IG identified three management and performance challenges for inclusion in the FEC’s 

2010 Performance and Accountability Report 

(PAR): Governance Framework; Human Capital 
April 1, 2010 - September 30, 2010

11

Management; and Information Technology 

Security.

• The OIG reviewed the FEC’s corrective action plan for the OIG’s 2010 Audit of the 

Commission’s Property Management Controls

and provided feedback to management. The 

OIG also met with the Acting Staff Director and 

staff to discuss differences of opinion between 

FEC management and the OIG regarding the 

FEC’s planned actions to address the weaknesses cited in the audit report.

• An annual review of systems of internal control for the OIG was conducted in compliance 

with the Federal Managers’ Financial Integrity 

Act, OMB Directive A-123, and FEC Directive 

#53. The OIG’s training program was selected 

for review to assess the internal controls of the 

program.

• The OIG Investigative Manual was updated 

and finalized during this reporting period.

• The OIG revised the office’s portion of the 

FEC’s new employee orientation briefing outline and presented the revised version to employees new to the FEC.

• The OIG performed and documented a local 

destruction of eight cubic feet of OIG excess 

paper records in accordance with the OIG’s 

record retention/destruction plan. The OIG also 

met with the FEC’s new Records Officer and 

provided a briefing on the state of FEC paper records management efforts from 2002 to 

present.
Office of Inspector General Semiannual Report to Congress

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Council of the Inspectors General on 

Integrity and Efficiency (cigie) Activity:

The Inspector General continues to be very involved in CIGIE. Ms. McFarland is a member of the 

Executive Council, which is composed of the Chair, 

Vice Chair, the past Vice Chair of the PCIE, all 

Committee Chairmen and one member appointed by 

the Chair. The Executive Council provides guidance 

on CIGIE initiated projects and the operating plans 

for each fiscal year. The Council meets monthly to 

discuss issues that will affect CIGIE.

The Inspector General co-chairs the Inspector 

General Candidate Recommendation Panel with the 

Justice Department Inspector General. 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.

The Inspector General also serves as Vice Chair 

of the CIGIE Professional Development Committee. 

This committee is charged with ensuring that there 

is strong, relevant training for the Inspector General 

community. Part of the charge of the committee is to 

establish training academies for each of the professional designations in the IG community. This is an 

on-going project.

During this reporting period, the Inspector General 

led a panel of IGs conducting interviews of candidates for the position of Executive Director of CIGIE, 

and served as a panel member for the interview 

process for the Executive Director of the Training 

Institutes for CIGIE. The Inspector General also responded to the CIGIE Legislative Committee’s request for input concerning various legislation affecting the OIG community.
April 1, 2010 - September 30, 2010

13

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

126 50 47 29

OIG Contacts

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

for the past six months – April 1, 2010 through 

September 30, 2010.

These contacts were made through various sources 

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

and personal visits to the OIG.
Office of Inspector General Semiannual Report to Congress

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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, 2010 – September 30, 2010.

Host/Sponsor Topic/Subject

CIGIE

Monthly Meetings

Executive Council Meetings

Professional Development Committee Meetings

Financial Statement Audit Network (FSAN) Meetings

New Leadership Development Program

CIGIE/GAO Annual Audit Conference

Council of Counsels to the Inspectors General Monthly CCIG Meetings

Assistant Inspector General for Investigations AIGI Quarterly Meetings

Federal Audit Executive Council FAEC Quarterly Meetings

Association of Government Accountants 5th Annual Internal Control and Fraud Conference

59th Annual Professional Development Conference

Executive Women in Government Writing Women Back into History – Annual Summit & 

Training Conference

Management Concepts Preparing High Impact Reports Training 

Federal Law Enforcement Training Center (FLETC) IG Basic Non-Criminal Investigator Training Program

Lincoln Leadership Institute Transformational Journey from Gettysburg Training

American Bar Association (ABA) ABA Legal Training

Human Resources Institute 2010 Black Women’s Conference

Leadership Training for Non-Supervisors

USDA Graduate School Residential Professional Development Workshop
April 1, 2010 - September 30, 2010

15

Host/Sponsor Topic/Subject

Federal Election Commission

Weekly Directors’ Meetings

Finance Committee Meeting

OIG Bi-weekly Staff Meetings

Administrative Liaison Group Meetings

Web Governance Board Planning Meeting

Disaster Recovery/Continuity of Operations Plan

 Meetings 

Federal User Group TeamMate Forum

Hatch Act Training

Privacy; Digital Signature; Comprizon and Security

 Awareness Training

Contracting Officer’s Technical Representative (COTR)

 Training

Creating Forms in PDF Training

OGC Litigation Update Session

Thinking Strategically Training (SkillSoft)

Managerial Skills and Abilities Training (SkillSoft)
Office of Inspector General Semiannual Report to Congress

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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 10

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 5

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
April 1, 2010 - September 30, 2010

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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
Office of Inspector General Semiannual Report to Congress

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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
April 1, 2010 - September 30, 2010

19

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

2007 Performance Audit of 

Privacy and Data

OIG-07-02 12/07 7 0 7

Audit Follow-up Review of the 

FEC’s Employee Transit Benefit 

Program

OIG-08-03 07/09 51 0 51

2008 Audit of Procurement and 

Contract Management

OIG-08-02 09/09 15 0 15

Audit of the FEC’s FY 2009 

Financial Statements

OIG-09-01 11/09 17 0 17
Office of Inspector General Semiannual Report to Congress

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This Page Intentionally Left Blank
April 1, 2010 - September 30, 2010

21

______________________________________________________________________________ Semiannual Report to Congress Page 24 April 2, 2010 – September 30, 2010

Federal Election Commission

Office of Inspector General 

Fiscal Year 2011

Work Plan

Lynne A. McFarland

Inspector General
Office of Inspector General Semiannual Report to Congress

22

TABLE OF CONTENTS

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

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

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

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

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

OIG 2011 Work Plan-------------------------------------------------------------------- 5

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

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

Special Projects------------------------------------------------------------------ 9
April 1, 2010 - September 30, 2010

23

1

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

Office of Inspector General

A Message from the Inspector General

I am pleased to present to the Commission the Office of Inspector General’s 

(OIG) fiscal year (FY) 2011 Annual Work Plan. This work plan includes a 

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

fiscal year. This plan also sets forth the OIG’s formal strategy for identifying 

priority issues and managing its workload and resources for FY 2011. Successful 

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

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

goals and objectives. 

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

corruption in the federal campaign process by administering, enforcing and 

formulating policy with respect to federal campaign finance statutes. The OIG is 

committed to ensuring the integrity of FEC programs and operations. The 

development and continual updating of the OIG’s work plan is a critical aspect of 

accomplishing the OIG’s objectives to promote economy and efficiency in FEC 

programs and to detect and prevent fraud, waste and abuse. Effective work 

planning ensures that audit and investigative resources are used effectively and 

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

audit and investigative support and service to our stakeholders.

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

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

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

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

Congress. 

Lynne A. McFarland

Inspector General 

Federal Election Commission

October 1, 2010
Office of Inspector General Semiannual Report to Congress

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2

The Federal Election Commission

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

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

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

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

Presidential elections.

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

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

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

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

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

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

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

complement of Commissioners – Matthew S. Petersen; Cynthia L. Bauerly; Ellen L. 

Weintraub; Steven T. Walther; Caroline C. Hunter; 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 fiscal year 2011 was 

$1,325,940 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.
April 1, 2010 - September 30, 2010

25

3

Exhibit 1: FEC - OIG Organizational Chart

Lynne A. McFarland

Inspector General

J. Cameron Thurber

Counsel to the IG

Chief Investigator

Irene Porter

Sr. Auditor

Mia Forgy

Staff Auditor

Jon Hatfield

Deputy Inspector General

Dorothy Maddox-Holland

Special Assistant to the

Inpsector General

OIG Strategic Planning

Strategic Plan

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

investigative coverage of the Commission’s programs and operations, in 2010 the 

OIG updated our strategic plan covering the period 2010 through 2015. Three 

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

follows: 

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

change in FEC policies, programs, and operations.

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

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

in support of our people and products.

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

environment that fosters accountability, communications, teamwork, and 

personal and professional growth. 
Office of Inspector General Semiannual Report to Congress

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4

In addition, strategies and performance measures for each objective are 

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

audits includes using feedback from stakeholder surveys to continually improve the 

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

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

the usefulness of the completed 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 2010, the 

OIG conducted our third annual all-day brainstorming session. Similar to 2008 and 

2009, the ideas and suggestions generated from the 2010 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.
April 1, 2010 - September 30, 2010

27

5

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

plan is divided into three primary categories:

(1) Audits/Inspections/Reviews;

(2) Investigative Program; and

(3) Special Projects.

OIG 2011 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 2011, the following audit related assignments are planned:

1. Audit of the Federal Election Commission’s 2010 and 2011 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 2010 – November 2010;

May 2011 – November 2011.
Office of Inspector General Semiannual Report to Congress

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6

2. 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 2011. 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: April – July 2011.

3. Audit Follow-up of the OIG’s 2006 Inspection and 2007 Audit of 

Privacy and Data Protection.

The OIG will oversee an independent public accounting (IPA) firm conduct an

audit follow-up of two previously issued reports on the FEC’s privacy and data 

protection policies, procedures and practices. 

In 2006, the OIG contracted with an IPA firm to conduct an inspection of 

personally identifiable information within the FEC. In addition, in 2007 the 

OIG contracted with another IPA firm to conduct a performance audit of 

privacy and data protection policies as required by section 522 of the 

Consolidated Appropriations Act, 2005. Numerous recommendations were 

reported to the FEC in the inspection and audit reports to correct 

weaknesses, some of which have already been implemented and verified by 

the OIG. The purpose of the audit follow-up will be to determine whether the 

FEC has implemented the outstanding recommendations.

Planned period of audit: October 2010 – January 2011.

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

Management. 

The OIG will oversee an IPA firm conduct an audit follow-up of the 2009 

performance audit of the FEC’s procurement and contract management. 

Previously, the OIG contracted with an IPA firm to conduct a performance 

audit of the procurement and contract management policies and procedures 

used by the FEC and to determine whether the agency is complying with the 
April 1, 2010 - September 30, 2010

29

7

policies and procedures, and applicable federal acquisition laws and 

regulations. The audit of the FEC’s procurement and contract management 

activities identified nine significant issues that warranted corrective action. 

The purpose of the audit follow-up will be to determine whether the FEC has 

taken appropriate corrective action to address the weaknesses.

Planned period of audit: November 2010 – March 2011.

5. Audit Peer Reviews.

The OIG commenced an audit peer review of the Commodity Futures Trading 

Commission OIG in the summer of 2010 as part of the Council of Inspectors 

General on Integrity and Efficiency’s audit peer review program. 

Government auditing standards require audit organizations to have an 

external review of their quality control system at least every three years. 

The OIG is planning to issue the final peer review report by November 2010. 

In addition, the FEC OIG is scheduled to be peer reviewed in FY 2011 by 

another OIG. As a result, the FEC OIG will be required to provide the peer 

review team documentation on the OIG’s quality control processes, audit 

workpapers, and other information for evaluation of the OIG’s compliance 

with government auditing standards and internal policies and procedures. 

6. Audit Policies and Procedures Manual.

The OIG began an update of the OIG’s audit manual in 2010 and expects to 

finalize the manual in late 2010. The updated audit policies and procedures 

manual will reflect changes in auditing standards and the OIG’s audit 

environment, to include the use of electronic working papers.

7. Limited Scope Inspections.

The OIG is planning to conduct a minimum of two limited scope, or shortterm, inspections of FEC programs during FY 2011. The goal of the shortterm 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. 

8. Additional Work Assignments. 

The following additional assignments may be undertaken during FY 2011

based on available OIG resources, timing of management’s implementation of 

audit recommendations, benefit to the agency and other relevant factors. 

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

a. Audit of the FEC’s Training Program.
Office of Inspector General Semiannual Report to Congress

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8

b. Audit of the FEC’s Records Management Program.

c. Inspection of the FEC’s Security and Disposal of Agency Equipment.

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

e. Review of the FEC’s Security Guard Policies and Practices.

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 2011, the following investigative assignments are planned:

1. Manage Hotline Complaints and Investigation Caseload.

The OIG will respond to hotline complaints during the fiscal year and report in 

a timely manner to the appropriate officials on the resolution of hotline 

complaints and investigations. 

2. Outsource OIG Hotline.

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

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

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

employees, contractors and interested parties with an additional mechanism to 

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

3. Proactive Investigative Initiatives.

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

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

several agency data systems, such as financial related systems, and plans to 

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

initiatives to prevent fraud, waste, abuse and misconduct.
April 1, 2010 - September 30, 2010

31

9

4. Outreach.

Throughout the fiscal year, the OIG will conduct fraud/OIG awareness 

briefings with division management and staff. The briefings are intended to 

educate FEC staff about the potential for fraud in FEC programs, such as 

travel, workers compensation, time and attendance, and government charge 

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

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

cases. The briefings will also educate the FEC staff about the OIG’s mission;

how to report complaints to the OIG; and whistleblower protections to 

prevent retaliation against employees and contractors who report allegations 

of serious wrongdoing or gross mismanagement to the OIG or the agency.

In addition, the OIG will continue the new employee orientation program to 

meet with all new employees to discuss the purpose and mission of the OIG. 

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

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

outreach initiatives.

SPECIAL PROJECTS

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

be responsible for numerous additional projects and activities during fiscal year 

2011. For example, as required by the Inspector General Act of 1978, as amended, 

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

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

in several federal Inspectors General community working groups on topics related 

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

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

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

requirements.

For Fiscal Year 2011, 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 
Office of Inspector General Semiannual Report to Congress

32

10

Inspector General for Investigations; Federal Audit Executive Council; and 

Financial Statement Audit Network Group. 

In addition to CIGIE professional working group meetings, the Inspector 

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

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

2. Semiannual and Quarterly Reporting.

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

will prepare and transmit to the Congress semiannual reports on the 

activities of the OIG. Semiannual reports summarize OIG activities during 

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

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

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

Commission on the activities of the office.

3. Professional Development and Training.

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

increase professional knowledge and proficiency, and ensure staff meet 

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

will attend professional training and conferences during the fiscal year to 

maintain and improve their knowledge, skills and abilities.

4. Audit Follow-up Tracking Database.

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

database during fiscal year 2011. In partnership with the FEC’s Information 

Technology Division, the OIG worked in 2010 to develop the database to 

assist the FEC to adhere to the requirements of the Office of Management 

and Budget’s Circular A-50, Audit Followup, September 29, 1982. The audit 

follow-up database will be an important tool for the Commission, 

management, program officials and OIG to monitor and track the status and 

implementation of audit recommendations by the OIG, Government 

Accountability Office, Office of Personnel Management, and other oversight 

bodies.
April 1, 2010 - September 30, 2010

33

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.

FEC/OIG Strategic Plan - Fiscal Years 2005 – 2010
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