Federal Election Commission 

Office of Inspector General 

Fiscal Year 2011 

Work Plan
 

Lynne A. McFarland 

Inspector General
 
 

 

 

 

 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 
 

 

 

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 

1 
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. 

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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. 

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In addition, strategies and performance measures for each objective are 

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

audits includes using feedback from stakeholder surveys to continually improve the 

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

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

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

the process. 

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

updated as necessary to ensure maximum effectiveness in meeting the changing 

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

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

Annual Work Plan. 

Annual Planning and Methodology Strategies 

The planning methodology that we have adopted is built around the OIG staff 

brainstorming sessions held annually each summer, as well as soliciting and 

receiving feedback and ideas from stakeholders throughout the year. The annual 

work plans will, of course, require periodic updates to reflect changes, such as new 

priorities, as well as any changes in OIG resources. In the summer of 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. 

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

plan is divided into three primary categories: 

(1) Audits/Inspections/Reviews; 

(2) Investigative Program; and

(3) Special Projects. 

OIG 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. 

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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 

6 
 

 

 

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. 

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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. 

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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 

9 
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. 

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FEC / OIG Strategic Plan - Fiscal Years 2010 - 2015 

OIG Products: To provide products 

and services that promote positive 

change in FEC policies, programs, and 

operations. 

OIG Process: To develop and implement 

processes, policies, and procedures to ensure 

the most effective and appropriate use of OIG 

resources in support of our people and 

products. 

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: 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. 

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 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 B: Plan and conduct costeffective work that address critical issues 

and results in positive change. 

Strategy: 

- solicit FEC and Congressional input in planning OIG 

activities; 

- develop internal planning mechanisms to support FEC 

goals and priorities; 

- ensure that priorities of IG are effectively 

communicated; and, 

- identify specific targets for OIG review that are the most 

cost-effective 

Objective C: Identify customer needs and 

provide products and services to meet 

them. 

Strategy: 

- establish new customer feed back mechanisms; 

- consider and evaluate customers feedback when 

planning and developing products and services; 

- respond to Congressional inquires and request for 

briefing and testimony; 

- promote open exchange of ideas and information 

through outreach and through use of e-mail; and, 

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

information received through the OIG hotline and other 

sources. 

Objective D: Implement efficient, effective, 

and consistent resolution and follow-up 

procedures. 

Strategy: 

- ensure that IG follow-up procedures are followed and 

that management is aware of their role in the process; 

- 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 A: Attract and retain well-qualified, 

diverse and motivated employees. 

Strategy: 

- develop and implement a comprehensive recruiting program 

that attracts a broad population with the knowledge, skills, 

abilities, and expertise necessary to make meaningful 

contributions to the OIG; 

- assess employee satisfaction and develop strategies to 

address employee concerns; 

- identify reasons for staff departures and develop plans to 

foster greater staff retention; and, 

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

force. 

Objective B: Provide training and 

developmental opportunities to employees. 

Strategy: 

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

office needs as well; 

- ensure that Government Auditing Standards in relation to 

training are adhered to; and, 

- maintain a reporting system to ensure that educational 

requirements are met. 

Objective C: Assess, recognize, and reward, 

when possible, performance that contributes to 

achieving the OIG mission. 

Strategy: 

- develop and articulate expectations for each employee's 

performance, including contributions in meeting the mission & 

goals of the OIG; and, 

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

exceptional employee performance. 

Objective D: Create and maintain a working 

environment that promotes teamwork and 

effective communication. 

Strategy: 

- ensure that 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 Performance Measures: An annual audit Performance Measures: All employees meet 

services; their effectiveness in plan is issued; strategic plan is periodically the training requirements; all employees have 

promoting positive change; and, reach reviewed; and, necessary technology is performance standards; and all employees 

agreement with management on at least provided to staff to enable them to most meet the basic requirements for the position in 

90% of recommendations within six efficiently perform their duties. which they were hired to perform. 

months of the report issue date.