Semiannual Report to Congress

October 1, 2012 – March 31, 2013

May 2013

Federal Election Commission - Office of Inspector General

999 E Street, N.W. Suite 940, Washington, D.C. 20463
i

October 1, 2012 - March 31, 2013

May 20, 2013

The Honorable John A. Boehner

Speaker of the House of Representatives

Washington, D.C. 20515

Dear Mr. 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 October 1,

2012 through March 31, 2013. During this reporting period, the FEC’s Inspector General 

completed, with the assistance of contract auditors, the annual audit of the FEC’s financial 

statements. 

We are pleased to report that the Commission received an unqualified (or clean) opinion 

on the required statements: the FEC’s Balance Sheet as of September 30, 2012, and the related 

Statements of Net Costs, Changes in Net Position, Budgetary Resources, and Custodial Activity

for the year then ended. This marks the fourth consecutive year with no material weaknesses 

identified. The auditors nonetheless provided nine findings. The response of FEC management 

to the issues noted by the auditors appears in the report, which was issued on November 15,

2012.

During the semiannual period, the OIG also completed its Review of Outstanding Audit 

Recommendations, which was released in January 2013, and completed, with the assistance of 

contract auditors, an inspection of the FEC’s disaster recovery and continuity of operations 

plans. The inspection report was released in January 2013 and identified 14 findings. 

Management’s responses to the findings and recommendations are discussed in detail in that 

inspection report.

The Commission appreciates and shares the Inspector General’s commitment to sound 

financial and management practices, and looks forward to continuing its cooperative working 

relationship as management takes appropriate measures to improve operations of the 

Commission. Copies of the Semiannual Report to Congress are being provided to the Chairmen 

and Ranking Members of the FEC’s oversight committees.

On behalf of the Commission,

Ellen L. Weintraub

Chair

Enclosure

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

OFFICE OF THE CHAIR
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Office of Inspector General Semiannual Report to Congress

MANAGEMENT REPORT ON 

INSPECTOR GENERAL ISSUED REPORTS

WITH QUESTIONED COSTS

FOR THE SIX-MONTH PERIOD ENDING MARCH 30, 2013

Number of Questioned Unsupported

Reports Costs Costs

A. Reports for which no management decision

has been made by commencement of the

reporting period 0 0 [0]

B. Reports issued during the reporting period 0 0 [0]

Subtotals (A + B) 0 0 [0]

C. Reports 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. Reports 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]
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October 1, 2012 - March 31, 2013

MANAGEMENT REPORT ON 

INSPECTOR GENERAL ISSUED REPORTS WITH

RECOMMENDATIONS TO PUT FUNDS TO BETTER USE

FOR THE SIX-MONTH PERIOD ENDING MARCH 30, 2013

Number of Funds to be Put

Reports To Better Use

A. Reports for which no management decision

has been made by the commencement

of the reporting period 0 0

B. Reports issued during the reporting period 0 0

C. Reports for which a management decision

was made during the reporting period 0 0

(i) Dollar value of recommendations that 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. Reports for which no management decision

has been made by the end of the reporting period 0 0

E. Reports for which no management decision

was made within six months of issuance 0 0
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Office of Inspector General Semiannual Report to Congress

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v

October 1, 2012 - March 31, 2013

 FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

Office of Inspector General

A Message from the Inspector General

During this reporting period, the Office of Inspector General (OIG) completed another 

year’s audit of the Federal Election Commission’s (FEC) financial statements. 

Congratulations are due to the FEC for again receiving a clean opinion and completing all 

outstanding financial related recommendations. It is hoped that this next year will see the 

agency make additional progress on the remaining outstanding recommendations which 

deal with the Information Technology Division (ITD).

We are also currently conducting an audit and inspection of two areas that have 

significance for all FEC employees, the Human Resources Division and the Equal 

Employment Office. These are two areas of the Commission that have the potential to 

reach and/or affect every staff person. The results of these two projects will be detailed 

in the next semiannual report. I am confident that the results of these projects will provide 

opportunities for improvement in serving the FEC staff.

As always, I would like to thank the OIG staff and the dedication they show in the work 

they accomplish. These staff members perform a variety of duties outside of their 

specialties and these efforts enable the OIG to provide a much wider area of coverage to 

the FEC and its various programs. Their dedication and willingness to “do what it takes” 

to get the job done correctly and fulfill the mission of the OIG is to be commended.

Lynne A. McFarland

Inspector General

Federal Election Commission

April 26, 2013
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Office of Inspector General Semiannual Report to Congress

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vii

October 1, 2012 - March 31, 2013

Executive Summary 1

The Federal Election Commission 3

Office of Inspector General 4

OIG Audit Activity 5 

OIG Audit Follow-up Activity 7

OIG Inspections 8

OIG Hotline Information 10

OIG Investigations 12

Additional OIG Activity 13

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

OIG Contacts 15

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

Reporting Requirements 18

Table I – Questioned Cost 19

Table II – Funds Put To Better Use 20

Table III – Summary Of Audit And Inspection Reports With 21

Corrective Actions Outstanding For More Than Six Months

Appendix A: OIG Fiscal Year 2013 Work Plan 23

Table of Contents
Office of Inspector General Semiannual Report to Congress

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1

October 1, 2012 - March 31, 2013

Executive Summary

improvements needed in the FEC’s information technology security. For detailed information pertaining 

to the Audit of the FEC’s Fiscal Year 2012 Financial 

Statements, as well as an audit of the FEC’s Office 

of Human Resources currently in progress, see the 

section entitled OIG Audit Activity (starting on page 

5). 

The OIG conducted follow-up work for prior audits 

with outstanding audit recommendations. In order 

to ensure audit recommendations are being implemented in a timely manner, the OIG revised its audit 

follow-up process to include conducting quarterly 

status meetings with management and providing 

semiannual reports on the follow-up results to the 

Commission. During this reporting period we released a report titled Review of Outstanding Audit 

Recommendations as of December 2012 (OIG-13-

01). The report covered fi ve (5) audits totaling 127 

outstanding audit recommendations. For details regarding the OIG’s audit follow-up work, see the section entitled OIG Audit Follow-up Activity (starting 

on page 7). 

The OIG procured contract services to conduct an 

inspection of the FEC’s disaster recovery plan (DRP) 

and continuity of operations plans (COOP). On 

September 26, 2012, Brown & Company (Brown) 

was awarded the contract to conduct the inspection under the supervision of the OIG, and in accordance with the Council of the Inspectors General on 

Integrity and Efficiency (CIGIE) Quality Standards 

for Inspections and Evaluations, January 2011. 

Brown performed several inspection steps to include: 

1) physical walkthroughs of the FEC’s disaster recovery facilities; 2) reviewing documentation related 

to the COOPs for each FEC office/division; 3) review 

of the FEC’s disaster recovery plan; and 4) interviews with FEC staff who were identifi ed as having a 

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

amended, states that the Inspector General is responsible for conducting audits, inspections, investigations, and recommending policies and procedures 

that promote economy, efficiency, and effectiveness 

of agency resources and programs, and to prevent 

fraud, waste, abuse, and mismanagement. The 

IG Act also requires the Inspector General to keep 

the Commission and Congress fully and currently 

informed about problems and defi ciencies in the 

Commission’s operations and the need for corrective 

action.

The executive summary highlights the most signifi -

cant activities of the Federal Election Commission 

(FEC) Office of Inspector General (OIG). Additional 

details pertaining to each OIG activity (i.e. audits, 

hotline, and investigations) can be found in subsequent sections of this report. The diligent work, outstanding efforts, and many contributions of our entire 

OIG staff make the major accomplishments of the 

OIG possible.

In November 2012, the OIG completed the Audit 

of the FEC’s Fiscal Year 2012 Financial Statements 

(OIG-12-03). The OIG exercised another option year 

with Leon Snead & Co. (LSC) to conduct the FEC’s 

annual fi nancial statement audit in accordance with 

generally accepted auditing standards. The audit 

was conducted in four phases: Planning; Review 

and Evaluation; Testing; and Reporting. In addition, the OIG provided assistance to LSC in gathering data regarding current active employees/contractors, as well as researching guidance to verify if 

Office of Management and Budget (OMB) M-09-32: 

Trusted Internet Connections is applicable to the 

FEC. The FEC received an unqualifi ed (clean) audit 

opinion. The fi nal audit report, released November 

15, 2012, contained nine (9) fi ndings and thirty-two 

(32) recommendations, all of which were related to 
2

Office of Inspector General Semiannual Report to Congress

significant role in executing the FEC’s COOPs and/

or DRP. 

The final DRP and COOP inspection report, released January 30, 2013 contained 14 findings and 

30 recommendations for improvement. For details 

regarding this and other OIG inspections in progress, see the section entitled OIG Inspections

(starting on page 8). 

In addition to the OIG’s audit and inspection work, 

there was activity during the reporting period on 

hotline and investigative matters. During this semiannual reporting period, three (3) new hotline 

complaints were opened and three (3) hotline complaints were closed. Regarding OIG investigations 

– the OIG currently has one (1) open investigation. 

For details regarding the OIG’s hotline complaints 

and investigations, see the sections entitled OIG 

Hotline Information (starting on page 10) and OIG 

Investigations (starting on page 12).
3

October 1, 2012 - March 31, 2013

The federal election commission

In 1975, Congress created the Federal Election 

Commission to administer and enforce the Federal 

Election Campaign Act (FECA). The duties of the 

FEC, an independent regulatory agency, are to disclose campaign fi nance 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 confi rmed 

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’s Commissioners include – 

Ellen L. Weintraub, Chair; Donald F. McGahn II, Vice 

Chairman; and Commissioners Caroline C. Hunter; 

Matthew S. Petersen; and Steven T. Walther. Former 

Commissioner Cynthia L. Bauerly resigned from the 

FEC in February 2013 and a replacement has not 

been nominated by the President.
4

Offi ce of Inspector General Semiannual Report to Congress

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 defi ciencies in FEC 

agency programs and operations, and the need for 

corrective action. 
5

October 1, 2012 - March 31, 2013

Audit of the FEC’s Fiscal Year 2012 Financial 

Statements

Assignment Number: OIG-12-03

Status: Released November 2012

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

FY12FinancialStatementAuditReport.pdf

The Office of Inspector General (OIG) exercised another option year with Leon Snead & Co. (LSC) to 

conduct the Federal Election Commission’s (FEC) 

annual fi nancial statement audit in accordance with 

generally accepted auditing standards. The entrance conference was held on May 8, 2012 and 

audit fi eldwork commenced on May 18, 2012. During 

the audit, bi-weekly status meetings were held with 

the auditors and FEC management to discuss audit issues and provide a status update of the audit 

progress.

The audit was conducted in four phases: Planning; 

Review and Evaluation; Testing; and Reporting. The 

planning phase consisted of LSC briefi ng the OIG 

on any changes to the audit plan from the prior year, 

new or additional audit steps included in the audit 

plan, and any changes made due to new requirements or audit standards for the 2012 fi nancial statement audit. 

During the review and evaluation phase, LSC followed up with management regarding the status of 

prior year fi ndings and recommendations. LSC’s review of prior year fi ndings concluded that fi ve (5) of 

the 20 prior audit recommendations were properly 

implemented. Further, LSC reviewed FEC’s compliance with applicable laws and regulations, and the 

existence and effectiveness of internal controls. 

OIG Audit Activity

In addition to completing the standard auditing steps, 

during the testing phase, the OIG provided assistance to LSC in gathering data regarding current 

active employees/contractors, as well as researching guidance to verify if OMB M-09-32: Trusted 

Internet Connections is applicable to the FEC. In 

addition, the auditors met with the Chair and Vice 

Chair of the Commission to fulfi ll the requirements of 

SAS 114: Communication with Those Charged with 

Governance. The auditors provided the FEC Chair 

and Vice Chair with an explanation of their audit role 

and responsibilities and an update regarding the 

progress of the audit. 

During the reporting phase, LSC issued nine (9) notices of fi ndings and recommendations (NFRs). All 

nine (9) fi ndings were related to defi ciencies in information technology controls. Management reviewed 

the NFRs and provided written responses to LSC. 

The exit conference for the audit was held November 

13, 2012. The fi nal report, released November 15, 

2012, contained nine (9) fi ndings and 32 recommendations. Among the nine fi ndings were the following: (1) FEC's computer access controls (i.e. passwords) do not meet best practice controls, and in 

some instances FEC's internal policies; (2) FEC has 

not timely implemented actions necessary to remediate identifi ed weaknesses in IT controls, some of 

which were fi rst reported in 2008; and (3) FEC has 

not developed an effective process to periodically 

review user access authorities by the users' supervisors. Without periodically performing a review of user 

access authorities, FEC officials do not have assurance that users only have access to information and 

information systems that are necessary to accomplish job responsibilities.

The FEC received an unqualifi ed (clean) audit opinion on their fi nancial statements.
6

Offi ce of Inspector General Semiannual Report to Congress

Audit of the Federal Election Commission’s 

Office of Human Resources (OHR)

Assignment Number: OIG-12-05

Status: In Progress

The Audit of the FEC’s Office of Human Resources 

(OHR) commenced during the last reporting period. The OHR is a critical component of the agency 

and is responsible for several important functions 

including: recruitment and retention of qualifi ed 

staff; employee-employer relations; administration 

of employee benefi ts; maintenance and processing of personnel records; and training, among other 

responsibilities.

The primary objectives of the audit are to: 1) assess 

the OHR customer service level and identify areas 

for improvement, where warranted; 2) assess the effi cient and effective use of automated processes for 

human resource functions; and 3) assess whether 

OHR has adequate policies that are up to date to 

govern all HR related functions. Determine if additional policies are needed and/or need updating. 

The OIG held an entrance conference on July 5, 

2012 to discuss the preliminary scope for the audit 

and provide management with an understanding of 

the purpose of the audit. As part of the customer 

service assessment, the audit included an agencywide survey of FEC staff to seek feedback on their 

satisfaction level of service provided by the FEC HR 

Office. The OIG launched the survey agency-wide 

on September 14, 2012; the results of the survey 

were shared with OHR (employee names and other 

identifying information were not provided to OHR) 

and utilized to help the OIG determine the areas to 

concentrate audit testing. 

Based on the survey conducted and information 

obtained during the planning phase of the audit, 

OIG testing concentrated on several processes, in 

particular, HR on Demand (which was implemented 

by OHR to track and monitor employee inquiries, 

recruitment & selection, and performance management). The purpose of the testing was to ensure 

that the processes are properly designed, operating effectively, and adhere to current policies, labor 

regulations, and/or guidance. Testing was completed 

at the end of March 2013 and the OIG briefed management on the potential audit fi ndings. The OIG 

will issue formal notices of fi ndings and recommendations (NFRs) to FEC management and begin the 

audit report process. The audit of the FEC’s Office 

of Human Resources is expected to be completed 

during the next reporting period.
7

October 1, 2012 - March 31, 2013

OIG Audit Follow-up Activity

Review of Outstanding Audit 

Recommendations

(as of December 2012) 

Assignment Number: OIG-13-01

Status: Released January 2013

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

Dec2012OutstandingRecommendationReport.pdf

During the previous reporting period the OIG revised its audit follow-up process to include conducting quarterly meetings with management and 

providing semiannual reports to the Commission 

detailing the status of the outstanding recommendations. During this reporting period, the OIG released the December 2012 Review of Outstanding 

Audit Recommendations report to the Commission 

detailing the follow-up work conducted by the OIG 

and the status of the outstanding recommendations. 

The report covered fi ve (5) audits totaling 127 outstanding audit recommendations:

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

Transit Benefi t Program;

• Audit of the Commission’s Property 

Management Controls;

• Follow-up Audit of Privacy and Data Protection; 

• Follow-up Audit of Procurement and Contract 

Management; and

• Inspection of the FEC’s Kastle Key Program.

Based on follow-up work performed during the 

quarter ending December 2012 and reported in 

the December 2012 Review of Outstanding Audit 

Recommendations report, OIG was able to close 

25 recommendations related to three audits (Audit 

Follow-up Review of the FEC’s Employee Transit 

Benefi t Program; Audit of the Commission’s Property 

Management Controls; and Inspection of the FEC’s 

Kastle Key Program). Subsequent to the release of 

the December 2012 Review of Outstanding Audit 

Recommendations report, the OIG met with the 

Director of Procurement during the quarter ending March 2013 to review outstanding audit recommendations pertaining to the Follow-up Audit of 

Procurement and Contract Management. Based on 

the OIG’s review of 13 contract fi les and follow-up 

work performed, the OIG was able to close six (6) of 

the 29 outstanding audit recommendations. 

In total, the OIG closed 31 outstanding recommendations for the semiannual reporting period from 

October 2012 to March 2013 due to adequate corrective actions implemented by management. The 

total cumulative outstanding recommendations is 

140. See Table III for a breakdown of outstanding 

recommendations. 
8

Offi ce of Inspector General Semiannual Report to Congress

Inspection of the FEC’s Disaster Recovery Plan 

and Continuity of Operations Plans

Assignment Number: OIG-12-06

Status: Released January 2013

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

FECDRPandCOOPInspectionReport.pdf

The Office of Inspector General (OIG) procured contract services to conduct an inspection of the FEC’s 

disaster recovery plan (DRP) and continuity of operations plans (COOP). The objectives of the inspection were to determine if FEC: 

1. Established an adequate project plan for the 

completion of the FEC’s DRP/COOPs;

2. Assigned adequate/sufficient resources in order to complete a mission critical project;

3. Conducts continuous monitoring procedures to 

ensure the plans are refl ective of current business processes;

4. Conducts appropriate testing procedures; and

5. Developed, implemented and tested the FEC’s 

DRP/COOPs in compliance with applicable 

guidance (best practices) related to the federal 

government.

On September 26, 2012, Brown & Company (Brown) 

was awarded the contract to conduct the inspection 

under the supervision of the OIG, and in accordance with the Council of the Inspectors General on 

Integrity and Efficiency (CIGIE) Quality Standards 

for Inspections and Evaluations, January 2011. 

A planning meeting was held with Brown on October 

1, 2012 to discuss in detail the inspection objectives, 

requirements and expectations of the contractor. 

The kick-off meeting with Brown and management 

was held on October 9, 2012 and fi eldwork commenced during the week of October 22, 2012. To 

meet the objectives of the inspection, Brown performed several test steps during fi eldwork, to 

include: 

• physical walkthroughs of the FEC’s disaster recovery facilities;

• reviewing documentation related to the COOPs 

for each FEC office/division;

• review of the FEC’s disaster recovery plan; and

• interviews with FEC staff who were identifi ed 

as having a signifi cant role in executing the 

FEC’s COOPs and/or DRP.

At the conclusion of fi eldwork, the contractor conducted a debriefi ng with management regarding 

the issues identifi ed and formally documented the 

issues in notices of fi ndings and recommendations 

(NFRs). Management provided responses to the 

NFRs and Brown drafted the inspection report and 

released the draft report to management for review 

and comment. The fi nal inspection report was released on January 30, 2013 and contained 14 fi ndings and 30 recommendations for improvement. 

Among the fourteen fi ndings, were the following: 

(1) COOP and DRP training is not provided to key 

COOP personnel. Personnel responsible for mission critical systems must be trained to execute 

contingency procedures. If teams are not properly 

trained, the FEC risks the chance of the COOP not 

being properly implemented and can affect the overall strategy of the plan; (2) the System Security Plan 

(SSP), COOPs, and DRP are not reviewed and updated on an annual basis. If plans are not updated 

and tested, at least annually, they will become noneffective and inaccurate; and (3) FEC’s COOP and 

DRP contact lists are outdated and do not contain 

OIG Inspections
9

October 1, 2012 - March 31, 2013

adequate contact information. Important components of a COOP are the Call Trees, contact information, and the roles and responsibilities for all the 

recovery teams. This information helps the agency to quickly respond to any disaster or disruptive 

event. The FEC’s COOP and DRP Call Trees and 

contact lists were in the process of being updated 

at the time of the inspection, for the fi rst time in two 

years.

Office of Equal Employment Opportunity 

Inspection 

Assignment Number: OIG-12-07

Status: In Progress

The OIG is conducting an inspection of the FEC’s 

Office of Equal Employment Opportunity (OEEO). 

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

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

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

amended, the Notifi cation and Federal Employment 

Anti-Discrimination and Retaliation Act of 2002 (No 

FEAR Act), the Age Discrimination in Employment 

Act of 1967 (ADEA), the Americans with Disabilities 

Act of 1990 (ADA), among others. The OEEO’s 

general responsibilities are two-fold – to advise and 

educate employees and managers of their rights 

and responsibilities under the EEO laws, and to process complaints of alleged violations of EEO laws. 

The OEEO is also responsible for recordkeeping 

and reporting, especially of complaint statistics, as 

required by the EEO laws.

The inspection has two goals. The fi rst goal is to 

analyze the OEEO complaint process and statistics. This goal has three objectives: a) To ensure that 

the OEEO is procedurally compliant, both in process and practice, with the statutes and regulations 

governing complaints; b) To evaluate the effectiveness of OEEO educational and outreach efforts 

concerning the complaint process and practice; and 

c) To provide FEC management with an understanding of trends in reported allegations of violations of 

EEO laws. The second goal is to review OEEOsponsored training and post-training OEEO survey results from participants. This goal is intended 

to measure the OEEO’s effectiveness in providing 

training to FEC employees. 

The necessary records and case fi les have been 

reviewed by the OIG, and an OIG survey of FEC 

employees about OEEO practices has been prepared and will be conducted early in the next reporting period. The OEEO inspection is expected to be 

completed and the report published during the next 

reporting period.
10

Offi ce of Inspector General Semiannual Report to Congress

The OIG hotline exists to enable FEC employees, 

FEC contractors, and the public to have direct and 

confi dential contact with the OIG. All allegations or 

referrals of fraud, waste, abuse, mismanagement, 

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

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

be closed with no further action taken, referred to 

management or another agency, or an investigation 

will be initiated.

The OIG considers many factors when evaluating 

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

complaint received by the OIG cannot be investigated, and in many cases do not merit investigation. 

OIG policy requires that hotline complaints be evaluated on certain criteria, including the merits of an allegation, the availability of evidence, and the existing 

priorities, commitments, and resources of the OIG. 

Under this policy, hotline complaints are classifi ed 

as either high or low priority complaints. High priority complaints are investigated, and low priority complaints are either closed with no action or referred 

to the appropriate official for possible further review. 

Hotline evaluation decisions are made by the Chief 

Investigator, with concurrence from the Deputy IG.

During this semiannual reporting period, three (3) 

new hotline complaints were opened and three (3) 

hotline complaints were closed. The OIG has three 

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

reporting period, including two (2) that were opened 

prior to the beginning of this reporting period. 

The OIG frequently receives reports and allegations 

which are misdirected complaints that should have 

been routed to the Office of Complaints and Legal 

Administration within the Office of General Counsel 

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

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

Federal Election Campaign Act of 1971 (FECA), as 

amended, sets forth strict requirements for reporting alleged violations of FECA, and FEC regulations 

direct that such complaints be fi led directly by the 

complainant and processed through OGC; still, the 

OIG regularly receives complaints of alleged FECA 

violations, many of which are not legally compliant. 

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

alleging FECA violations, as the OIG cannot simply 

route FECA complaints to OGC. In other cases of 

misdirected complaints, a response is sent to the 

individual referring him or her to the proper office 

or other agency. In some limited instances where 

a misdirected communication does not concern a 

FECA violation but falls under the purview of another FEC component or government agency, such as 

a candidate with a question about fi ling a report with 

the FEC, the inquiry may be redirected and sent to 

the appropriate office or agency directly from the 

OIG. Reviewing and, where appropriate, responding 

to these reports and allegations when aggregated 

can entail a signifi cant amount of staff time and effort, despite the fact that they are not valid hotline 

complaints.

In order to capture and document these hotline 

contacts, the OIG created a category for “hotline 

inquiries” that do not meet the criteria for hotline 

complaints. Hotline contacts that are misdirected 

complaints, facially unsubstantiated, meritless or 

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

as “hotline inquires.” For this reporting period, the 

OIG received fi ve (5) hotline inquiries. One (1) of 

 OIG hotline Information
11

October 1, 2012 - March 31, 2013

the hotline inquiries was redirected to another FEC 

office, and two (2) were referred to another agency. 

One (1) was outside the OIG’s jurisdiction and under 

investigation by another agency, and no further action was taken on one (1) of the complaints.
12

Offi ce of Inspector General Semiannual Report to Congress

OIG investigations seek out facts related to allegations of wrongdoing. OIG investigations may address administrative, civil, and criminal violations of 

laws and regulations. The subject of an OIG investigation can be any agency employee, an FEC 

contractor, consultant, or a person or entity involved 

in alleged wrongdoing affecting FEC programs and 

operations. 

As discussed in OIG Hotline Information, all hotline 

complaints are evaluated to determine if they warrant an investigation. If an investigation is opened, 

the hotline complaint is closed and merged into the 

investigative fi le. OIG investigations involve a detailed examination or inquiry into issues brought to 

our attention by various sources, and may include 

interviews of relevant witnesses and subjects, document reviews, and computer forensic examinations. 

At the conclusion of an OIG investigation, the OIG 

prepares a report that sets forth the allegations and 

an objective description of the facts developed during the investigation. 

One (1) investigation was opened during the last 

semiannual reporting period and is actively being investigated and remains open.

OIG investigations
13

October 1, 2012 - March 31, 2013

Additional OIG Activity

addition, the OIG destroyed voided OIG credentials, which consisted of outdated credentials that were replaced and those of individuals 

no longer employed by the OIG. The OIG also 

submitted a set of records to the FEC records 

manager to obtain an accession number so 

that temporary fi les on hand can be shipped to 

NARA records center for storage.

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. 

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. In 

addition, the Inspector General routinely reads all 

Commission agenda items. Listed below are examples of the OIG’s additional activities: 

• During this reporting period, the OIG responded 

to two (2) Congressional inquiries. The fi rst requested information about the IG community’s 

highest priority recommendations for reducing waste and increasing efficiency in executive 

branch departments and agencies. The second inquiry was a two-part request – the fi rst 

request concerns the applicability of climate 

change laws and regulations to the FEC, and 

an assessment of whether the FEC is meeting 

applicable standards. The second request was 

an assessment of what authorities the FEC has 

and can use to reduce emissions and strengthen resiliency. The FEC’s Office of General 

Counsel (OGC) was consulted in developing 

the response, as some of the requested information falls under OGC’s purview.

• The OIG reviewed a listing of our annual records, per the OIG’s records management 

policy, to determine what records are scheduled 

to be archived and/or destroyed; we received 

notifi cation from the FEC records officer that 

a set of temporary records previously submitted to NARA by the OIG will be destroyed. In 
14

Offi ce of Inspector General Semiannual Report to Congress

Council of the Inspectors General on 

Integrity and Efficiency (CIGIE) Activity

The Inspector General continues to be very involved 

in the Council of the Inspectors General on Integrity 

and Efficiency (CIGIE) which is composed of the 

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

and all Committee Chairs. The Executive Council 

provides guidance on CIGIE initiated projects, the 

operating plans for each fi scal year, and the general 

business of CIGIE. The Council meets monthly to 

discuss issues that will affect CIGIE. 

During this semiannual reporting period, the IG 

was appointed Vice Chair of the Council of the 

Inspectors General on Integrity and Efficiency. In 

this capacity, the IG supports the Chair, reviews 

various documents, attends weekly meetings with 

the Chair and CIGIE executive staff, and provides input into various issues that come before CIGIE. The 

IG also prepares for and participates in numerous 

conference calls with various government officials 

to discuss a broad range of topics affecting CIGIE 

and the federal government. The IG is also Chair of 

the IG Recommendations Panel and continues to 

receive resumes and questionnaires from individuals seeking to become IGs. The resumes and questionnaires are shared with other members of the IG 

Recommendations Panel. 

The IG, along with the Chair of CIGIE, hosted a 

brown bag luncheon for OIGs on sequestration. The 

IG also participated in American University’s New 

Leaders Course – Lunch with the IG program and 

spoke to participants about leadership style, challenges facing IGs as leaders, and what it takes to 

rise to the executive level in the IG community. 

The IG Counsel served as coordinator of the DFE 

Investigative Peer Review, in this capacity the IG 

Counsel fi nalized the peer review schedule and conducted a presentation on the peer review process to 

the CIGIE Investigations Committee. The IG Counsel 

also participated in a curriculum review of the CIGIE 

leadership programs and presented the results of 

the review to the CIGIE Professional Development 

Committee.
15

October 1, 2012 - March 31, 2013

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

for the past six months – October 1, 2012 through 

March 31, 2013.

These contacts were made through various sources 

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

and personal visits to the OIG.

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

3,218 67 3,107 44

OIG Contacts
Office of Inspector General Semiannual Report to Congress

16

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 October 1, 2012 – March 31, 2013:

MEETINGS:

Host / Sponsor Topic / Subject

Council of Inspectors General on

Integrity and Efficiency 

Weekly Chair/Vice Chair Meetings

Monthly Meetings

Monthly Executive Council Meetings

Professional Development Committee/Leadership 

Development Subcommittee Meetings

Inspector General Criminal Investigator Academy 

Seasoned Training Officers Meeting

Annual Awards Ceremony

Council of Counsels to the Inspectors General Monthly Meetings

Assistant Inspector General for Investigations Quarterly Meetings

Financial Statement Audit Network Network Meetings

Federal Audit Executive Council Bi-monthly Meetings

Federal Election Commission

Bi-weekly Directors' Meetings

Finance Committee Meetings

Managers' Meeting

Administrative Liaison Group Meetings

Occupant Emergency Team Meeting

Employee Recognition Ceremony

FEC / Office of Inspector General Bi-weekly Staff Meetings
October 1, 2012 - March 31, 2013

17

TRAINING/CONFERENCES:

Host / Sponsor Topic / Subject

Council of Inspectors General on Integrity and 

Efficiency

2012 Suspension and Debarment Workshop

Peer Review Training

IG Authorities Training Program

Federal Audit Executive Council

EPA Forensic Audit Product Line and Lessons From

 Treasury Inspector General for Tax Administration 

Association of Certified Fraud Examiners Anti-fraud Efforts in Healthcare seminar

Institute of Internal Auditors

Tools for Effective Collaboration between Internal Audit,

 Compliance, and Risk Management seminar

Creating a World Class Audit Organization seminar

Office of Government Ethics Conflicts of Interest Training

AuditNet Adding Value by Auditing Value training

 Data Analysis using Excel training

FCW Executive Briefings Detecting and Preventing Wasteful and Improper

 Payments

I-Sight

Detecting Deception

Best Practice in Investigative Report Writing

What Analysts need to know about Social Media

Federal Election Commission Procurement 101 Training

SkillPort Tutorial Overview 

Chief Financial Office/International Training 

Consortium Contracting Officers Representative (COR) Training

National Seminars / Skillpath Professional Excellence for Women
18

Office of Inspector General Semiannual Report to Congress

Reporting Requirements

Reporting requirements required by the Inspector General Act of 1978, as amended by the Inspector 

General Act Amendments of 1988 are listed below:

 IG ACT DESCRIPTION PAGE

Section 4(a)(2) Review of Legislation 13

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

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

and Deficiencies None

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

Action Has Not Been Completed (Table III) 21

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

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

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

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

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

Section 5(a)(10) Summary of Audit Reports issued before the start of the Reporting Period 

for which no Management Decision has been made N/A

Section 5(a)(11) Significant revised Management Decisions N/A

Section 5(a)(12) Management Decisions with which the Inspector General is 

in Disagreement None
19

October 1, 2012 - March 31, 2013

TABLE I

INSPECTOR GENERAL ISSUED REPORTS WITH QUESTIONED COSTS

(DOLLAR VALUE IN THOUSANDS)

Number Questioned 

Costs

Unsupported 

Costs

A. For which no management decision has been made 

by commencement of the reporting period

0 0 0

B. Which were issued during the reporting period 0 0 0

Sub-Totals (A&B) 0 0 0

C. For which a management decision was made during 

the reporting period

 0 0 0

(i) Dollar value of disallowed costs 0 0 0

(ii) Dollar value of costs not disallowed 0 0 0

D. For which no management decision has been made 

by the end of the reporting period

0 0 0

E. Reports for which no management decision was 

made within six months of issuance

0 0 0
20

Office of Inspector General Semiannual Report to Congress

TABLE II

INSPECTOR GENERAL ISSUED REPORTS WITH RECOMMENDATIONS THAT 

FUNDS BE PUT TO BETTER USE

Number Dollar value

A. For which no management decision has been made by commencement of 

the reporting period 0 0

B. Which were issued during the reporting period 0 0

C. For which a management decision was made during the reporting period 0 0

(i) dollar value of recommendations were agreed to by management 0 0

based on proposed management action 0 0

based on proposed legislative action 0 0

(ii) dollar value of recommendations that were not agreed to by

 management

0 0

D. For which no management decision has been made by the end of the

reporting period 0 0

E. Reports for which no management decision was made within six months of 

issuance 0 0
21

October 1, 2012 - March 31, 2013

SUMMARY OF AUDIT AND INSPECTION REPORTS WITH CORRECTIVE ACTIONS 

OUTSTANDING FOR MORE THAN SIX MONTHS

Recommendations

Report Title Report 

Number

Issue Date Number Closed Open

Audit Follow-up Review of the 

FEC’s Employee Transit Benefi t 

Program

OIG-08-03 07/09 51 36 15

Audit of the Commission’s 

Property Management Controls 

OIG-09-02 03/10 36 22 14

Federal Election1 Commission 

2012 Financial Statement Audit

OIG-12-03 11/12 32 0 32

2010 Follow-up Audit2 of 

Procurement and Contract 

Management

OIG-10-02 06/11 29 6 23

2010 Follow-up Audit3 of 

Privacy and Data Protection

OIG-10-03 03/11 45 7 38

Inspection of the Federal 

Election Commission’s Kastle 

Key Program

OIG-11-02 12/11 15 8 7

Quality Assessment Audit of the 

Federal Election Commission’s 

Audit Division

OIG-12-01 09/12 11 0 11

Cumulative Total of Outstanding Recommendations 140

1 Follow-up on the 20 open recommendations from the 2011 audit was performed during interim testing for the FEC’s 2012 Financial 

Statement Audit, and as of September 30, 2012 (5) recommendations were reported as closed in the OIG’s previous semiannual report.

2 The 29 open recommendations include 12 of the 15 recommendations from the 2008 Procurement and Contract Management 

Performance Audit, OIG-08-02. Three recommendations were closed from the 2008 audit

3 The 45 open recommendations include 16 of the 19 recommendations from the 2006 Inspection Report on Personally Identifi able 

Information, OIG-06-04, and 2007 Performance Audit of Privacy and Data Protection, OIG-07-02. In total, three recommendations were 

closed from the 2006 inspection and 2007 audit.

TABLE III

1 Follow-up on the 20 open recommendations from the 2011 audit was performed during interim testing for the FEC’s 2012 Financial 
Office of Inspector General Semiannual Report to Congress

22

This Page Intentionally Left Blank
October 1, 2012 - March 31, 2013

23

APPENDIX A: 

APPENDIX A

Federal Election Commission

Office of Inspector General 

Fiscal Year 2013

Work Plan

Lynne A. McFarland

Inspector General

___________________________________________ Semiannual Report to Congress Page 27 October 1, 2012 – March 31, 2013
Offi ce of Inspector General Semiannual Report to Congress

24

TABLE OF CONTENTS

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

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

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

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

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

OIG 2013 Work Plan-------------------------------------------------------------------- 6

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

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

Special Projects------------------------------------------------------------------ 10

Attachment

FEC / OIG Strategic Plan – Fiscal Years 2010 - 2015
October 1, 2012 - March 31, 2013

25

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) 2013 Annual Work Plan. This work plan includes a description of audit, 

inspections, investigative and special projects planned for FY 2013. The plan also sets 

forth the OIG’s formal strategy for identifying priority issues and managing its workload 

and resources for FY 2013. Successful execution of this plan will enable the OIG to 

provide the highest quality work products to our stakeholders and to assist the FEC in 

meeting its strategic mission, goals and objectives. 

The OIG substantially completed the work planned for FY 2012 in the audit and 

investigative programs, as well as special projects; some of the assignments are in 

process spanning fiscal years 2012 and 2013. Among the audits completed in FY 2012

were the Audit of the FEC’s Fiscal Year 2011 Financial Statements, and the Quality 

Assessment Audit of the FEC’s Audit Division. The OIG also devoted resources this past 

FY to audit follow-up with the goal of closing outstanding audit recommendations. I am 

pleased to report the FEC has been able to implement some of the outstanding OIG 

recommendations, but a considerable amount of work remains to ensure weaknesses 

cited by the OIG are addressed. 

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

program accomplished much of the work planned for 2012, to include responding to 

hotline complaints, OIG briefings to new employees, oversight of the OIG’s hotline 

service, among other projects. My office also completed our first voluntary investigative 

peer review of another federal OIG. In addition to the investigative program, the OIG 

staff was actively involved in several professional working groups during the FY, to 

include the Council of the Inspectors General on Integrity and Efficiency Professional 

Development Committee, the Inspector General (IG) Candidate Recommendations Panel 

Committee, the IG Council of Counsels, among others. At the start of FY 2013, the OIG 

is fully staffed with six professional staff members, and therefore, I anticipate the OIG 

will successfully complete the FY 2013 work plan that follows. 

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

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

policy with respect to Federal campaign finance statutes.”1 The OIG is committed to 

ensuring the integrity of FEC programs and operations. The development and continual 

updating of the OIG’s work plan is a critical aspect of accomplishing the OIG’s objectives 

to promote economy and efficiency in FEC programs and to detect and prevent fraud, 

waste and abuse. Effective work planning ensures that audit and investigative resources 

 1 Federal Election Commission, Fiscal Year 2013 Congressional Budget Justification (Washington, DC, February 13, 

2012), 3. 
Offi ce of Inspector General Semiannual Report to Congress

26

2

are used effectively and efficiently. I look forward to a successful year of providing the 

highest quality of audit and investigative support and service to our stakeholders.

Lynne A. McFarland

Inspector General 

Federal Election Commission

October 3, 2012
October 1, 2012 - March 31, 2013

27

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

and confirmed by the Senate. Each member serves a six-year term, and two seats are 

subject to appointment every two years. By law, no more than three Commissioners can 

be members of the same political party, and at least four votes are required for any 

official Commission action. The Chairmanship of the Commission rotates among the 

members each year, with no member serving as Chairman more than once during his or 

her term. Currently the FEC has a full complement of Commissioners – Chair Caroline 

C. Hunter; Vice-Chair Ellen L. Weintraub; Cynthia L. Bauerly; Matthew S. Petersen;

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

Office of Inspector General 

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

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

investigations relating to the Federal Election Commission’s programs and operations; 2) 

detecting and preventing fraud, waste, and abuse of agency programs and operations 

while providing leadership and coordination; 3) recommending policies designed to 

promote economy, efficiency, and effectiveness of the establishment; and 4) keeping the 

Commission and Congress fully and currently informed about problems and deficiencies 

in FEC agency programs and operations, and the need for corrective action. The OIG

budget request for FY 2013 was $ 1,144,237, an amount necessary to cover salaries and 

related expenses for six staff members, to include audit contracts and training. Exhibit 1 

on the following page contains the OIG’s organizational chart.
Offi ce of Inspector General Semiannual Report to Congress

28

4

Exhibit 1: FEC - OIG Organizational Chart

OIG Strategic Planning

Strategic Plan

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

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

strategic plan that covers the period 2010 through 2015. Three major categories of OIGwide goals and objectives are included in the strategic plan, which are as follows: 

 OIG Products: To provide products and services that promote positive change in 

FEC policies, programs, and operations.

 OIG Processes: To develop and implement processes, policies, and procedures to

ensure the most effective and appropriate use of OIG resources in support of our 

people and products.

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

that fosters accountability, communications, teamwork, and personal and 

professional growth. 

Lynne A. McFarland

Inspector General

Jon Hatfield

Deputy Inspector 

General

Dorothy Maddox-Holland

Special Assistant to the 

Inspector General

Shellie Purnell-Brown

Senior Auditor

Mia Forgy

Senior Auditor

J. Cameron Thurber

Counsel to the Inspector 

General/Chief Investigator
October 1, 2012 - March 31, 2013

29

5

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 adopted by the OIG is based on a formal risk 

assessment process. The purpose of the risk assessment process is to better align OIG resources to 

areas that will provide the most value to the FEC. A risk assessment is a process to identify, assess, 

respond to, and report on opportunities and threats that affect the achievement of objectives. The OIG 

also solicits feedback and ideas from stakeholders throughout the year. The annual work 

plan 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 2012, the OIG conducted our fifth annual planning process that 

involved a series of OIG planning meetings to discuss the upcoming fiscal year and OIG 

work assignments. In addition to planning based on risk, the OIG planning process is 

also 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.
Offi ce of Inspector General Semiannual Report to Congress

30

6

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 2013 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 2013, the following assignments are planned:

1. Audit of the Federal Election Commission’s 2012 and 2013 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 2012 – November 2012;

May 2013 – November 2013.
October 1, 2012 - March 31, 2013

31

7

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

The OIG will conduct a performance audit of the FEC’s Human Resources (HR) 

Office during the first part of fiscal year (FY) 2013. 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 OIG audit will focus on two 

main areas, customer service and the efficient and effective use of automated 

processes by the agency for human resource functions. As part of the customer 

service assessment, the OIG will conduct an agency-wide survey of FEC staff to seek 

feedback on their satisfaction level of service provided by the FEC HR Office.

Planned period of audit: July – December 2012.

3. Audit of the Federal Election Commission’s Budget and Financial 

Management Process

The OIG will conduct a performance audit of the FEC’s budget and financial 

management process. The audit will have three primary objectives: (1) to 

determine whether the Office of the Chief Financial Officer provides FEC 

management with timely, accurate and real-time financial information to enable 

managers to effectively monitor and manage FEC programs; (2) to assess the 

benefits and costs of the FEC’s financial line of business with the General Services 

Administration; and (3) assess year-end spending.

Planned period of audit: January – April 2013.

4. On-Going Audit Follow-up. 

An important responsibility of the OIG is to follow-up on previously issued audit 

reports with outstanding audit recommendations. At the beginning of FY 2013, 

there were 143 outstanding audit recommendations representing five audits and 

one inspection. On-going audit follow-up during FY 2013 will consist of the

following responsibilities: (1) review implemented audit recommendations to 

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

management’s corrective action plans that detail plans for resolving outstanding 

audit recommendations; and (3) conduct regular meetings throughout the FY with 

management to discuss progress to implement audit recommendations. 

Planned period of audit followup: On-going throughout FY 2013. 
Offi ce of Inspector General Semiannual Report to Congress

32

8

5. Audit Peer Review.

The OIG will complete an audit peer review of another federal OIG during the 

fiscal year 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. 

Planned period of audit peer review: Fiscal year 2013. 

6. Limited Scope Inspections.

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

inspections of FEC programs during FY 2013. The goal of the short-term 

inspections will be to focus OIG resources on high-risk areas and provide rapid, 

up-to-date information to FEC management and the Commission on the efficiency 

and effectiveness of FEC programs. 

o An inspection related to the Office of Equal Employment Opportunity was 

started in late FY 2012 and is expected to be completed by December 2012. 

o A second inspection is expected to begin in October 2012 on the 

implementation of the agency’s disaster recovery plan and continuity of 

operations plans. The inspection is expected to be completed in December 

2012.

o An inspection on the FEC’s compliance with the Federal Managers’ 

Financial Integrity Act (FMFIA) is planned to begin in the early part of 

calendar year 2013 and is expected to be completed by April 2013. 

o Additional inspections on the FEC’s civil penalties program, FEC’s 

information technology planning process, leasehold improvements and the 

agency printing program may be performed, time permitting.

7. Additional Work Assignments. 

Additional work assignments may be undertaken during FY 2013 based on 

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

Priorities may be adjusted to reflect emerging issues during the FY.
October 1, 2012 - March 31, 2013

33

9

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 2013, the following investigative assignments are planned:

1. Manage Hotline Complaints and Investigation Caseload.

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

manner to the appropriate officials on the resolution of hotline complaints and 

investigations. 

2. Proactive Investigative Initiatives.

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

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

agency data systems, such as financial related systems, and will continue to 

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

initiatives to prevent fraud, waste, abuse and misconduct.

3. Investigative Peer Review.

The FEC OIG participates in the Council of Inspectors General on Integrity and 

Efficiency voluntary peer review program for smaller OIGs, and the FEC OIG is 

expected to be peer reviewed during FY 2013. The objective of the peer review is 

to determine whether internal control systems are in place and operating 

effectively to provide reasonable assurance that professional investigative 

standards are being followed. Specifically, the external peer review team will 

analyze FEC OIG existing policies and procedures, conduct interviews with 

selected OIG management officials and the investigator, and sample closed 

investigative files and other administrative records, as warranted. 

Planned period of investigative peer review: Fiscal year 2013. 
Offi ce of Inspector General Semiannual Report to Congress

34

10

4. Outreach.

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

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

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

mismanagement to the OIG. In FY 2012, the OIG worked with the Office of the 

Chief Financial Officer to identify the contractor personnel for the agency. The 

OIG plans to provide fraud briefings to the contractor personnel in FY 2013. 

Discussion and education on fraud will help contractors to identify and report 

suspected fraud and help reduce the number of fraud cases. The briefings will also 

discuss the OIG’s hotline service and how contract personnel can report fraud, 

waste and abuse to the OIG. 

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

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

OIG will review and revise, as necessary, the OIG’s FECNet (intranet) site, public 

Web site, OIG brochure, fraud poster, and other outreach initiatives.

SPECIAL PROJECTS

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

responsible for numerous additional projects and activities during FY 2013. For 

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

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

General. The Inspector General and staff also participate in several federal Inspectors 

General community working groups on topics related to law, audits, and investigations. 

All of these activities contribute to the success and mission of the OIG. Additional 

special projects will arise throughout the FY and the OIG will prioritize our workload to 

respond to the additional requirements.

For fiscal year 2013, 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: monthly CIGIE meetings; Executive Council of CIGIE; CIGIE

Professional Development Committee; IG Candidate Recommendations Panel 

Committee; IG Council of Counsels; Assistant Inspector General for 

Investigations; Federal Audit Executive Council; and Financial Statement Audit 

Network Group. 
October 1, 2012 - March 31, 2013

35

11

In addition to CIGIE professional working group meetings, the Inspector General 

or staff will regularly attend FEC director level meetings, and management and 

FEC town-hall meetings during the FY. 

2. Semiannual and Quarterly Reporting.

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

prepare and transmit to the Congress semiannual reports on the activities of the 

OIG. Semiannual reports summarize OIG activities during the immediately 

preceding six-month periods ending March 31st and September 30th of each year. 

OIG semiannual reports are also provided to the Commission. The OIG will also 

report on a quarterly basis to the Commission on the activities of the office.

3. Professional Development and Training.

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

increase professional knowledge and proficiency, and ensure staff meet continuing 

professional educational requirements. As a result, the OIG staff will attend 

professional training during the fiscal year to maintain and improve their 

knowledge, skills and abilities.

4. Update Audit and Investigative Manuals.

The OIG will update the office’s audit and investigative manuals in FY 2013. The 

updated audit manual will incorporate recent changes to the Government Auditing 

Standards, and the investigative manual update will reflect changes and additions 

to the OIG’s investigative program.
Offi ce of Inspector General Semiannual Report to Congress

36

12

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.
 

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