Semiannual Report to Congress

April 1, 2008 – September 30, 2008

November 2008

Federal Election Commission - Office of Inspector General

999 E Street, N.W. Suite 940, Washington, D.C. 20463
April 1, 2008 - September 30, 2008

i

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

November 19, 2008

The Honorable Nancy Pelosi

Speaker of the House of Representatives

Washington, D.C. 20515

Dear Madam Speaker:

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

Commission submits the Inspector General's Semiannual Report to Congress. The report 

summarizes the FEC’s Inspector General’s activity from April 1, 2008 through September 30, 

2008. During this reporting period the FEC’s Inspector General commenced an audit of the 

FEC’s  scal year 2008  nancial statements. The audit was completed on time and management 

issued the  nal Performance and Accountability Report on November 14, 2008. We are pleased 

to report that the Commission received an unquali ed opinion from its outside auditors. We will 

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

During the semiannual period, the FEC’s Of ce of the Inspector General (“OIG”) 

continued follow-up veri cation activity for a previous audit of the FEC’s employee transit 

bene t program. This audit was released in February 2007 and resulted in 25 recommendations 

to improve management of this program. FEC management continues to review these 

recommendations to identify and implement measures that will improve the management of this 

program in a cost-effective manner. 

The OIG also performed follow-up work on a 2007 audit of the FEC’s privacy and data 

protection practices, which had resulted in seven  ndings. In response to the audit and with input 

from the Inspector General, FEC management promptly developed a corrective action plan to 

implement the audit recommendations and continues to pursue the actions identi ed in that plan. 

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

sound  nancial and management practices, and we anticipate a continued cooperative 

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

Commission. Copies of this semiannual report are being provided to the Chairman and Ranking 

Members of the FEC’s oversight committees.

On behalf of the Commission,

 Donald F. McGahn II

 Chairman

Enclosure

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

ii

MANAGEMENT REPORT ON FINAL ACTION

ON AUDITS WITH QUESTIONED COSTS

FOR THE SIX-MONTH PERIOD ENDING SEPTEMBER 30, 2008

Number of

Audit Reports

Questioned 

Costs

Unsupported 

Costs

A. Audit reports for which no management 

decision has been made by commencement 

of the reporting period

0 0 [0]

B. Audit reports issued during the reporting 

period 0 0 [0]

Subtotals (A + B) 0 0 [0]

C. Audit 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. Audit Reports for which no management 

decision has been made by the end of the 

reporting period

0 0 [0]

E. Audit Reports for which no management 

decision was made within six months of 

issuance

0 0 [0]
April 1, 2008 - September 30, 2008

iii

MANAGEMENT REPORT ON FINAL ACTION

ON AUDITS WITH RECOMMENDATION TO PUT FUNDS TO BETTER USE

FOR THE SIX-MONTH PERIOD ENDING SEPTEMBER 30, 2008

Number of Audit 

Reports

Funds to be Put to 

Better Use

A. Audit reports for which no management decision has 

been made by the commencement of the reporting 

period

0 0

B. Audit reports issued during the reporting period 0 0

C. Audit 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. Audit Reports for which no management decision has 

been made by the end of the reporting period 0 0

E. Audit Reports for which no management decision was 

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

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April 1, 2008 - September 30, 2008

v

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

OFFICE OF THE INSPECTOR GENERAL

A Message from the Inspector General

This has been a very dynamic time for the Federal Election Commission. During the 

past six months, the FEC received  ve new Commissioners, ending a period where 

the agency lacked a quorum and was unable to carry out parts of its mission. The 

past three years has been a period of instability with respect to governance in the 

FEC. Speci cally, there has been a lack of continuity in several key senior leadership 

positions of the agency. For example, there have been four different Staff Directors, 

two of which have been “acting” rather than permanently assigned. In addition, 

there have been four different Chief Financial Of cers (CFOs), two of which were 

also in “acting” positions. There has also been lack of continuity at other vital positions. For example, the head of the Administrative Division retired in 2007 and her 

replacement was employed at the FEC for only ten months. The current Of ce of 

Human Resources Director, in place only  fteen months, is currently detailed to the 

Deputy Staff Director for Management and Administration position, and therefore 

is currently serving in both positions. I feel that it is imperative that these senior 

management positions are  lled as soon as possible with well quali ed individuals 

who can assist the Commissioners in ensuring that the mission of the FEC is moved 

forward. 

The OIG has also had a very active six months. We  lled our Counsel to the Inspector General/Chief Investigator vacancy, a new position within the of ce. A new auditor position was also  lled. These two new positions represent the  rst growth the 

OIG has experienced in fourteen years and will provide the OIG with much needed 

assistance. 

We have continued to work with management on our previously conducted Section 

522 Privacy Audit, discussing their Corrective Action Plan (CAP) and the audit 

follow-up process. The FY 08 Financial Statement Audit is being conducted and we 

have started an audit of the FEC’s procurement and contract management function. 

We have also seen an increase in hotline complaints and our new counsel is actively 

working on those issues.

I would like to again thank the staff of the Of ce of Inspector General for their 

hard work and dedication. I am honored to work with this intelligent and motivated 

group of people.

Lynne A. McFarland

Inspector General

Federal Election Commission

October 31, 2008
Office of Inspector General Semiannual Report to Congress

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April 1, 2008 - September 30, 2008

vii

Table of Contents

Executive Summary 1

The Federal Election Commission 3

Office of Inspector General 4

OIG Audit Activity

Audit of the Federal Election Commission’s Fiscal Year 

2008 Financial Statements

Audit of the FEC’s Contract and Procurement 

Management Process 6

OIG Audit Follow-Up Activity 7

OIG Hotline Information 9

OIG Investigations 10

Additional OIG Activity 11

ECIE and PCIE Activity 13

Reporting Requirements 14

Table I – Inspector General Issued Reports With 

Questioned Costs

Table II – Inspector General Issued Reports With Recommendations 

That Funds Be Put To Better Use

Table III – Summary Of Audit Reports With Corrective Actions 

Outstanding For More Than Six Months

OIG Contacts 18

List of Training, Meetings and Conferences 19

OIG Strategic Plan - Fiscal Years 2005 – 2010 21

Contacting the Office of Inspector General (inside back cover)

5

15

16

17
Office of Inspector General Semiannual Report to Congress

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April 1, 2008 - September 30, 2008

1

Executive Summary

LLP, discussed the audit scope and ways to ensure 

an efficient and effective audit process for fiscal year 

2008. A timeline was established for the audit, along 

with requests to management for necessary documentation and information concerning the financial 

statements.

Based on the discussions with management and 

the OIG’s efforts to validate deliverables provided by 

two former contractors, the OIG decided to conduct 

an Audit of the FEC’s Contract and Procurement 

Management Process – OIG-08-02. The OIG began 

the process of hiring an auditing firm to conduct the 

audit. The Request for Proposal was submitted to 

prospective contractors. After completing the reviewing process, the OIG awarded the contract to Regis 

& Associates PC.

During a prior reporting period, the OIG attempted to conduct a follow-up of the Audit of the FEC’s 

Employee Transit Benefit Program – OIG-06-01. 

The audit was released February, 2007 and can be 

found on the OIG’s Website at http://www.fec.gov/

fecig/transit07.pdf. The OIG made 23 recommendations to aid in improving management of the transit 

benefit program. The OIG met with management to 

discuss the status of the open recommendations, the 

OIG concluded that no recommendations had been 

closed during this reporting period.

The OIG conducted audit follow-up work on the 2007 

Performance Audit of Privacy and Data Protection 

– OIG – 07-02. On December 8, 2005, the President 

signed the Transportation, Treasury, Independent 

Agencies and General Government Appropriations 

Act 2005. This annual appropriations bill contained 

a new section, Division H, Title V, § 522 relating to privacy controls of certain Federal agencies. 

Section 522 requires certain agencies to assign a 

Chief Privacy Officer (CPO) who is responsible for 

identifying and safeguarding personally identifiable 

The Inspector General Act of 1978, as amended, 

states that the Inspector General is responsible for 

conducting audits, inspections, investigations, and 

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

resources and programs that prevent fraud, waste, 

abuse and mismanagement. The IG act also requires 

the Inspector General to keep the Commission and 

Congress fully and currently informed about problems and deficiencies in the Commission’s operations and the need for corrective action.

This semiannual report includes the major accomplishments of the Office of Inspector General, as well 

as relevant information regarding additional OIG activities. The executive summary highlights the most 

significant activities of the OIG. Additional details 

pertaining to each activity can be found in subsequent sections of this report.

The Audit of the FEC’s Fiscal Year 2008 Financial 

Statements – OIG-08-01 commenced during this 

reporting period. Under a contract monitored by the 

OIG, Clifton Gunderson LLP (CG-LLP), an independent certified public accounting firm, is performing the audit of the FEC’s FY 2008 financial statements. The OIG is responsible for oversight of the 

financial statement audit. This includes: 1) reviewing 

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

evaluating the qualifications and independence of 

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

4) examining audit documents and reports to ensure 

compliance with Government Auditing Standards, 

and OMB Bulletin No. 08-24 Audit requirements for 

Federal Financial Statements; and 5) other procedures the OIG deems necessary to oversee the contract and audit.

The entrance conference was conducted, at which 

time management, the OIG, and Clifton Gunderson, 
Office of Inspector General Semiannual Report to Congress

2

information (PII). Section 522 also required an independent third-party review, contracted by the OIG, 

of agency use of PII and of its privacy and data protection policies and procedures at least every two 

years.

The OIG selected Cotton & Company as the independent contractor to conduct the performance 

audit of privacy and data protection policies and procedures. The audit resulted in seven findings. The 

OIG conducted the follow-up and concluded that the 

outstanding recommendations will remain open.

For detailed information regarding the above audits 

and audit follow-up activity, see the section entitled 

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

Audit Follow-up Activity (starting on page 8).

As this reporting period comes to a close, there are 

sixteen open hotline complaints in various stages 

(pending, in progress); and there are three open investigations. For more information pertaining to the 

hotline issues, see the section entitled OIG Hotline 

Information (located on page 12); for more information on investigations, see the section entitled OIG 

Investigations (located on page 13).
April 1, 2008 - September 30, 2008

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 sixyear 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 compliment of Commissioners – 

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

Vice Chairman; Cynthia L. Bauerly, Commissioner; 

Caroline C. Hunter, Commissioner; Matthew S. 

Petersen, Commissioner; and Ellen L. Weintraub, 

Commissioner.
Office of Inspector General Semiannual Report to Congress

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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.

Office of Inspector General
April 1, 2008 - September 30, 2008

5

Audit of the Federal Election Commission’s 

Fiscal Year 2008 Financial Statements

Assignment Number: OIG – 08-01

Status: In Progress

The Chief Financial Officers Act of 1990 (Public Law 

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

as amended requires the FEC Office of Inspector 

General, or an independent external auditor as 

determined by the Inspector General, to audit the 

agency financial statements. Under a contract monitored by the OIG, Clifton Gunderson LLP (CG-LLP), 

an independent certified public accounting firm is 

performing the audit of the FEC’s FY 2008 financial 

statements.

The OIG is responsible for oversight of the financial 

statement audit. This includes: 1) reviewing the auditors’ approach and planning of the audit; 2) evaluating the qualifications and independence of the 

auditors; 3) monitoring the work of the auditors; 4) 

examining audit documents and reports to ensure 

compliance with Government Auditing Standards, 

and OMB Bulletin No. 08-24 Audit requirements for 

Federal Financial Statements; and 5) other procedures the OIG deems necessary to oversee the contract and audit.

The entrance conference was conducted, at which 

time management, the OIG, and Clifton Gunderson, 

LLP, discussed the audit scope and ways to ensure 

an efficient and effective audit process for fiscal year 

2008. A timeline was established for the audit, along 

with requests to management for necessary documentation and information concerning the financial 

statements.

The OIG coordinated and participated in audit status 

meeting, with CG-LLP and management to discuss 

the progress of the audit and areas of concern. CGLLP has started providing management with notice 

of findings and recommendations (NFR). The NFRs 

inform management of potential audit findings and 

allow management the opportunity to respond to the 

issues before the final audit report is issued.

The OIG participated with the Clifton Gunderson auditors in their fraud brainstorming session for the audit. SAS 109 and SAS 99 were used as the basis for 

the session. The purpose of this session was to assess how fraud could be committed and concealed 

within the FEC’s environment, specifically focusing 

on the risk of material misstatement. We assessed 

prior years’ risk and analyzed their potential of being 

a risk of material misstatement to the current year 

audit and considered any new potential risk that 

could possibly occur in this year’s audit.

The Inspector General, at the request of the auditors, reviewed all agendas and minutes from the 

FEC Executive Meetings from October to June to 

ensure that they did not contain any information that 

may have an impact in relation to the financial statements. The Inspector General has also met with the 

auditors to discuss what recommendations contained in last year’s Financial Statement Audit report 

can be considered closed and which ones still need 

to be addressed by management.

The IG attended the SAS 99 meeting with the outgoing Staff Director and the Clifton Gunderson auditors 

to assess the Staff Director’s opinion on possible 

fraud issues at the FEC.

The Inspector General and CG-LLP have met with 

the FEC’s Finance Committee, composed of three 

Commissioners, to discuss the progress of the audit 

and the steps required to ensure that all of the auditors’ and management’s needs are met. We have 

found these meetings to be very productive and 

OIG Audit Activity
Office of Inspector General Semiannual Report to Congress

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are encouraged with the level of interest from the 

Committee.

Audit of the FEC’s Contract and Procurement 

Management Process

Assignment Number: OIG – 08-02

Status: In Progress

Based on discussions with management and efforts 

by the OIG to validate the deliverables of two former 

contractors; the OIG decided to conduct an audit of 

the procurement and contract management functions of the agency.

The OIG began the process of hiring an auditing 

firm to conduct the audit. The Request for Proposal

was submitted to prospective contractors; the OIG 

received and reviewed the proposals, and following the completion of the reviewing process, the 

contract was awarded to Regis & Associates PC to 

conduct the FEC’s procurement and contract management audit. A kick-off meeting was held with the 

contractor at the end of the reporting period. We 

anticipate the audit to commence shortly and expect 

the final report to be delivered at the beginning of 

the new calendar year.
April 1, 2008 - September 30, 2008

7

FEC staff and the revised forms have not yet been 

placed in use.

The OIG interviewed the Human Resource staff to 

gain an understanding of former and current operating practices used to manage the program. Records 

were reviewed of staff who resigned or were placed 

on administrative leave during the 2007 calendar 

and fiscal year since the Transit audit report was 

issued. The OIG obtained copies of transit applications and annual recertification forms submitted by 

FEC staff. The FEC’s Washington Metropolitan Area 

Transit Authority (WMATA) account representative 

was contacted to gain an understanding of the system controls and downloadable data available for 

use in verifying FEC staff compliance with Transit 

Benefit Program policies.

Detailed testing of the transit benefit program was 

performed to determine whether the program weaknesses, as a whole, had been addressed and 

whether the prior OIG recommendations had been 

implemented and achieved the desired result. This 

involved reviewing internal documentation from 

various offices, compiling and analyzing electronic 

transit information, conducting interviews with staff 

of HR, Administration and Finance, as well as with 

external stakeholders such as WMATA customer 

service representative, and LAZ and MetroPark 

parking managers. As a result of speaking to the 

business responsible for managing FEC parking, 

information on employees who pay for parking has 

been provided to the FEC Administrative Division 

and disseminated to Human Resources. This will 

help ensure that staff who pay to park in the parking 

garage are not allowed to participate in the transit 

benefit program.

The results of testing are being compiled and the 

draft report is in progress and should be completed 

soon.

Audit Follow-up of the FEC’s Transit Benefit 

Program

Assignment Number: OIG – 08-03

Status: In Progress

During a prior reporting period, the OIG conducted the Audit of the FEC’s Employee Transit Benefit 

Program – OIG-06-01. The audit was released 

February, 2007 and can be found on the OIG’s 

Website at http://www.fec.gov/fecig/transit07.pdf. 

The audit was conducted in response to a 2005 OIG 

hotline complaint alleging that some participants received transit benefits while on extended business 

travel, which is a violation of FEC policy. The OIG 

made 25 recommendations to aid in improving management of the transit benefit program.

In December 2007, the OIG initiated audit follow-up 

verification activity for the Transit Benefit Audit. The 

OIG met again with management on February 20, 

2008 to determine status of the open recommendations. We were unable to get an updated status at 

that time but eventually received an updated corrective action plan (CAP) from management on March 

14, 2008. The OIG attempted to verify whether the 

actions had been fully implemented and therefore 

corrected the deficiencies described in the findings. 

Because management did not provide the CAP by 

the requested date, the OIG was unable to complete 

verification activities, prior to cut-off for semiannual 

reporting, for the three recommendations management put forth as fully implemented.

The FEC OIG reviewed and provided comment on 

draft policies and procedures as well as clearance 

forms used to document whether staff claimed excessive transit benefits which require repayment. 

Based on discussion with the Human Resource 

staff, the policies have not been communicated to 

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

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2007 Performance Audit of Privacy and Data 

Protection

Assignment Number: OIG – 07-02

Release Date: December, 2007

Website Address: http://www.fec.gov/

fecig/2007Privacy.pdf

Audit follow-up work was performed on the 2007 

Performance Audit of Privacy and Data Protection 

– OIG – 07-02. On December 8, 2005, the President 

signed the Transportation, Treasury, Independent 

Agencies and General Government Appropriations 

Act 2005. This annual appropriations bill contained 

a new section, Division H, Title V, § 522 relating to 

privacy controls of certain Federal agencies. Section 

522 requires certain agencies to assign a Chief 

Privacy Officer (CPO) who is responsible for identifying and safeguarding personally identifiable information (PII). Section 522 also required an independent 

third-party review, contracted by the OIG, of agency use of PII and of its privacy and data protection 

policies and procedures at least every two years. 

The OIG contracted Cotton & Company to conduct the required audit. The audit resulted in seven 

findings, two of which did not have management 

concurrence.

During the previous reporting period, the OIG coordinated a management briefing about the audit and 

the importance of effective internal controls. The 

briefing included the two Commissioners serving at 

that time, the Staff Director, General Counsel and 

Chief Financial Officer. This reporting period the OIG 

briefed the Co-Chief Privacy Officers, shared the 

Cotton & Company presentation, and discussed the 

context of the slide presentation.

In accordance with Office of Management and 

Budget (OMB) Circular No. A-50, Audit Follow-up, 

revised, the FEC developed a corrective action plan 

(CAP) to set forth the specific action planned to 

implement the recommendations and the schedule 

for implementation. The OIG met with management 

to discuss the CAP provided. The OIG provided detailed written comments to management regarding 

required and suggested elements to reach resolution on the CAP. Management provided the OIG 

with a revised CAP, the OIG met with the Co–Chief 

Privacy Officer and team to discuss the revised plan 

and resolution process.

It is important to note that management continues 

to disagree with two of the seven audit findings. As 

part of the OIG’s audit follow-up process, the OIG 

assess whether actual corrective action taken by 

management has mitigated or eliminated the two 

audit findings with non-concurrence. The OIG considers findings “closed” based on the audit follow-up 

work that involves verification that management’s 

corrective actions have addressed the weaknesses 

identified during the audit.

The OIG concluded that the seven outstanding recommendations will remain open. The OIG believes 

that management’s implementation of the recommendations will enable the FEC to reach an appropriate level of compliance with respect to privacy 

practices.
April 1, 2008 - September 30, 2008

9

OIG hotline Information

The Office of Inspector General established a hotline 

to enable employees and others to have direct and 

confidential contact with the OIG. The OIG receives 

complaints through various means such as U.S. 

mail, telephone, e-mail, and personal visits to the 

OIG. Once a hotline (HL) complaint has been received, a preliminary inquiry is conducted. When the 

inquiry has been completed, the hotline complaint 

can be closed with no further action taken, referred 

to management for action, or closed and an investigation opened on the issue.

Seven (7) new HL complaints were opened during 

the fourth quarter. Two (2) of the seven (7) new HL 

complaints were also closed during the fourth quarter and converted into investigations. There are now 

sixteen (16) open hotline complaints at the end of 

the reporting period in various stages (pending, in 

progress). Eleven (11) of the sixteen (16) open HL 

complaints have been reviewed during this quarter 

and discussions have been held to determine what 

further action, if any, will be taken. The OIG also 

drafted new hotline complaint procedures and a new 

hotline complaint form.
Office of Inspector General Semiannual Report to Congress

10

At the end of the reporting period there were three 

(3) open investigations. Two (2) new administrative investigations were opened during this quarter. One (1) criminal investigation (OIG-06-03) 

remained open from previous reporting periods. 

Approximately nine (9) investigative interviews 

were conducted in connection with these investigations. Agency records were requested and obtained from the Office of Human Resources and the 

Office of Administration. Investigative records were 

also requested and obtained from the Washington 

Metropolitan Area Transit Authority.

The OIG Investigation Manual was revised and new 

language was added. In addition, new investigation forms including case initiation; memorandum 

of interview; memorandum of activity; investigative 

plan and worksheet; an employee Kalkine advisory 

form; and an employee Garrity advisory form were 

created.

OIG investigations
April 1, 2008 - September 30, 2008

11

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 PCIE/ECIE Legislative 

Committee. In addition, the Inspector General routinely reads all Commission agenda items. The following are examples of those additional activities:

● During the previous reporting period the OIG 

worked on finalizing its record retention and 

disposition schedule to be submitted to the 

National Archives and Records Administration 

(NARA) for approval. The purpose of the record retention and disposition schedule is to 

list the types of records maintained by the OIG 

and the time period after which destruction or 

permanent retention is authorized. The record 

retention schedule will also provide for the 

transfer of inactive records from the OIG to an 

off-site records center.

During this reporting period the OIG researched the NARA record retention schedule 

for OIG law enforcement agencies to determine how grand jury records are retained. In 

addition, the OIG attended a meeting with the 

FEC’s Records Analyst and the NARA representative to gain an understanding of the OIG’s 

ability to classify and process records in an efficient manner. Following the meeting the OIG 

received a draft records schedule which was 

reviewed, modified, and forwarded to the FEC 

Records Officer for formal submission to NARA 

for consideration and approval by the NARA 

archivist.

The OIG also conducted an informal debrief 

session with the FEC’s records clerk prior to 

his departure from the agency. The purpose of 

the meeting was to identify the various forms 

required and the boxing method used to transfer records to the Washington Records Center 

in Suitland. The OIG anticipates composing 

a procedures guide for the office to ensure a 

clear and consistent approach to managing 

OIG records.

● The OIG provided the FEC’s Information 

Systems Security Officer (ISSO) with information pertaining to the FEC’s Social Security 

Number Reduction Program. As part of an 

agency wide request, the ISSO requested the 

OIG identify documents containing social security numbers, and any alternative identifiers to 

using the social security number. The OIG submitted the name and type of every document 

retained in our office that contained a SSN. 

This included documents which may not have 

originated from the OIG but the OIG uses on 

a regular basis. The OIG determined that we 

do not collect SSN’s directly from employees. 

However, the Time and Attendance Reports 

and the leave balance reports come with the 

SSN’s pre printed on the form. The OIG ensures that they are stored under lock and key. 

The SF-182 training forms only contain the last 

4 digits of the employee’s SSN, and they are 

stored under lock and key as well.

● The OIG worked with the FEC’s IT division to 

create an electronic audit follow-up tool that 

can be used by both the OIG and agency management to record recommendation implementation and verification activities. The tool is 

designed to provide regular and ad hoc audit 

recommendation status reporting for the OIG. 

While the concept is sound and the application 

Additional OIG Activity
Office of Inspector General Semiannual Report to Congress

12

shows promise, there appears to be a compatibility issue between the software version the 

tool was developed in, and the version running 

on OIG computers. The OIG plans to revisit the 

compatibility issue with the IT division and finalize plans to develop and utilize the electronic 

audit follow-up tool.

● The OIG prepared comments regarding pending legislation – the Federal Information 

Infrastructure Response Act of 2008 (FIIRE 

Act); and the Government Credit Card Abuse 

Prevention Act of 2008. Comments pertaining to 

Credit Card Abuse prevention were provided to 

the USDA Counsel to the IG.

● The OIG provided comments to FEC management on the following topics: FEC draft Travel 

Policy; the FEC Employee Recognition Awards 

Program; Performance Awards; and the Transit 

Benefit Subsidy Procedures.

● The OIG completed a Government 

Accountability Office questionnaire; the purpose 

of the questionnaire was to evaluate agency governance and the relationship with the 

Inspector General.

● The OIG acted as an independent assessor and assisted the Federal Housing Finance 

Board (FHFB) OIG with evaluating proposals 

for their annual FISMA review. The intent was 

to provide independent assessment on proposals submitted, reach consensus as a group, and 

award a contract to the organization that represented the best value for money.

● The OIG met with an audit representative from 

another OIG to respond to questions about the 

OIG’s responsibility for overseeing the annual 

financial statement audit of a federal agency. 

The OIG provided specific examples, forms, 

and other guidance to educate the OIG representative on the responsibilities for monitoring a 

financial statement audit.
April 1, 2008 - September 30, 2008

13

ECIE and PCIE Activity

The President’s Council on Integrity and Efficiency 

(PCIE) and the Executive Council on Integrity and 

Efficiency (ECIE) were established May 11, 1992 

by Executive Order 12805, and are chaired by the 

Office of Management and Budget, Deputy Director 

for Management. In addition to the Inspectors 

General, the councils include representatives from 

the Office of Personnel and Management, the Office 

of Government Ethics, the Office of Special Counsel, 

and the Federal Bureau of Investigations.

The PCIE/ECIE have identical functions and responsibilities to coordinate and enhance governmental 

efforts to promote integrity and efficiency, and to detect and prevent fraud, waste and abuse in Federal 

programs. The PCIE is comprised of IGs appointed 

by the President of the United States and confirmed 

by the Senate. The ECIE consists of IGs appointed 

by the heads of their respective agencies.

The Inspector General is an active member of the 

Executive Council on Integrity and Efficiency and has 

provided input on a number of initiatives proposed by 

the Council. The IG participates in joint meetings and 

activities with the President’s Council on Integrity 

and Efficiency.

As a member of the Executive Council of the PCIE/

ECIE, the IG reviewed and scored 18 separate nominations for seven awards that are to be presented 

at the annual PCIE/ECIE awards ceremony. These 

awards include the Alexander Hamilton Award, the 

Glenn/Roth Award for Exemplary Service and the 

Award for Individual Accomplishment. The IG also 

represented the ECIE Chair at two PCIE meetings.

In anticipation of pending legislation, the IG community formed the IG Act Implementation Committee. 

The Inspector General is a member of this committee. The committee is composed of eight Inspectors 

General, four from the President’s Council on 

Integrity and Efficiency and four from the Executive 

Council on Integrity and Efficiency. The Committee 

devised an implementation plan for the Inspectors 

General to follow to ensure that the requirements 

under the new IG act are met. One of the biggest issues was the combining of the two existing Councils 

into one and electing a Chairman from the membership. The Committee drafted a plan for this transition for consideration by the Councils and a charter 

under which the new Council would operate. The 

Committee also devised a nominating and election 

process to fill the position of Chairman.
Office of Inspector General Semiannual Report to Congress

14

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 11

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)

17

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) 15

Section 5(a)(9) Recommendations that Funds be put to Better Use (Table II) 16

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

for which no Management Decision has been made

N/A

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

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

in Disagreement

None
April 1, 2008 - September 30, 2008

15

TABLE I

INSPECTOR GENERAL ISSUED REPORTS WITH QUESTIONED COSTS 

(DOLLAR VALUE IN THOUSANDS)

Number Questioned 

Costs

Unsupported 

Costs

A. For which no management decision has been made by 

commencement of the reporting period

0 0 0

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

Sub-Totals (A&B) 0 0 0

C. For which a management decision was made during 

the reporting period

 0 0 0

(i) Dollar value of disallowed costs 0 0 0

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

D. For which no management decision has been made by 

the end of the reporting period

0 0 0

E. Reports for which no management decision was made 

within six months of issuance

0 0 0
Office of Inspector General Semiannual Report to Congress

16

TABLE II

INSPECTOR GENERAL ISSUED REPORTS WITH RECOMMENDATIONS THAT 

FUNDS BE PUT TO BETTER USE

Number Dollar Value

(In Thousands)

A. For which no management decision has been made by the 

commencement of the reporting period

0 0

B. Which were issued during the reporting period 0 0

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

0 0

(i) dollar value of recommendations were agreed to by 

management

0 0

based on proposed management action 0 0

based on proposed legislative action 0 0

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

management

0 0

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

of the reporting period

0 0

E. Reports for which no management decision was made within 

six months of issuance

0 0
April 1, 2008 - September 30, 2008

17

TABLE III

SUMMARY OF AUDIT REPORTS WITH CORRECTIVE ACTIONS OUTSTANDING FOR MORE 

THAN SIX MONTHS

Financial Statement Audits

Recommendations

Fiscal Year Report 

Number

Repeat* New Closed Total

Fiscal Year 2004 OIG-04-01 0 42 12 30

Fiscal Year 2005 OIG-05-01 30 11 15 26

Fiscal Year 2006 OIG-06-02 26 13 10 29

Fiscal Year 2007 OIG-07-01 14 7 11 10

*Repeat column represents recommendations from the prior fiscal year report that are still applicable to 

the current fiscal year report.

Recommendations

Report Title Report 

Number

Issue 

Date

Number Closed Open

Audit of the FEC’s Employee 

Transit Program

OIG-06-01 02/07 22 0 22

2007 Performance Audit of 

Privacy and Data Protection

OIG-07-02 12/07 7 0 7
Office of Inspector General Semiannual Report to Congress

18

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

533 25 501 7

OIG Contacts

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

six months – April 1, 2008 through September 30, 2008. 

These contacts were made through various sources such as telephone calls, personal visits to the OIG, emails, faxes, and U.S. mail – the OIG received a total of 533 contacts, 501 of those contacts were retrieved 

from the OIG SPAM account and required no additional action; 25 contacts required OIG action; and 7 contacts 

were forwarded to other agencies or another division within the Federal Election Commission. 
April 1, 2008 - September 30, 2008

19

List of Training, Meetings 

and Conferences

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

Inspector General and/or the OIG staff for the period April 1, 2008 – March 31, 2008.

Host/Sponsor Topic/Subject

ECIE Monthly Meetings

PCIE Financial Statement Audit Network (FSAN) Meetings

PCIE/ECIE Committee Meetings

PCIE/ECIE

2008 PCIE/ECIE Annual Training Conference: 

Transitioning to a New Administration – Role of 

Inspectors General

Council of Counsels to the Inspectors General CCIG Meeting

Assistant Inspector General for Investigations AIGI Quarterly Meetings

Association of Government Accountants AGA’s Third National Internal Control and Fraud 

Conference

AGA’s 57th Annual Professional Development 

Conference

Federal Dispute Resolution Conferences, Inc. 23rd Annual FDR Conference

General Accountability Office Principles of Appropriations Law Training

American University Key Executive Leadership – Session Two

USDA Graduate School Basic Governmental Auditing

Fundamentals of Writing

U.S. Postal Service/OIG Introductory TeamMate Electronic Workpapers

National Procurement Fraud Task Force Conference

Association of Certified Fraud Examiners Certified Fraud Examiners Preparation Training 

Certified Fraud Examiners Conference

Federal Audit Executive Council 2008 FAEC Conference

Office of Government Ethics National Government Ethics Conference

Office of Thrift Supervision/Internal Coaching Alliance Reach Your Full Potential Through Coaching

(Cont.)
Office of Inspector General Semiannual Report to Congress

20

Host/Sponsor Topic/Subject

Potomac Forum E-Records in Government

Federal Election Commission

Weekly Senior Level Meetings

Annual Ethics Training

Annual IT Security Awareness Training

Annual Privacy Awareness Training

Hatch Act Training

ComprizonSuite Training – Submitting Electronic

Procurement Requests 

Project Management Fundamentals (SkillPort)

Introduction to Program Management (SkillPort)

Government Purchase Card Fraud, Waste, and Abuse 

Webcast Seminar

Accession (Records Management) Training 

Kronos Automated Time and Attendance Tutorial

Presented OIG information in New Employee 

Orientations
April 1, 2008 - September 30, 2008

21

FEC / OIG Strategic Plan - Fiscal Years 2005 - 2010

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.

 __________________________________________________________________________________ Semiannual Report to Congress Page 26 April 1, 2008 – September 30, 2008 

FEC/OIG Strategic Plan - Fiscal Years 2005 – 2010
CONTACTING THE 

OFFICE OF INSPECTOR GENERAL

The success of the OIG mission to prevent fraud, waste, and abuse depends on the cooperation of FEC employees (and the public). There are several ways to report questionable activity. 

Call us at 202-694-1015 or toll-free 1-800-424-9530. A confidential or anonymous message can be left 24 hours a day/7 days a week.

Write or visit us - we are located at: Federal Election Commission

Office of Inspector General

999 E Street, N.W., Suite 940

Washington, D.C. 20463

Mail is opened by OIG staff members only.

You can also fax us at 202-501-8134 or contact us by e-mail at: oig@fec.gov.

Website address: http://www.fec.gov/fecig/fecig.shtml

Individuals may be subject to disciplinary or criminal action for knowingly making a false complaint or providing 

false information.