SPECIAL REVIEW 19-01 

Use of TRANServe Benefits During the 

FY 19 Government Shutdown

(Dec 22, 2018 – Jan 25, 2019)

July 31, 2020

_____________

FEDERAL ELECTION COMMISSION

Office of Inspector General
Table of Contents Page 

I. EXECUTIVE SUMMARY ........................................................................................................................ 3

II. INTRODUCTION AND OBJECTIVE ........................................................................................................ 4

III. RESULTS ............................................................................................................................................... 5

IV. RECOMMENDATIONS ........................................................................................................................... 9

V. BACKGROUND AND SCOPE ................................................................................................................ 10

VI. CONCLUSION ...................................................................................................................................... 16

APPENDIX A: RELEVANT STATUES, POLICIES, AND GUIDANCE......................................................... 17

APPENDIX B: ACRONYMS ...................................................................................................................... 19

APPENDIX C: MANAGEMENT RESPONSE .............................................................................................. 20
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

3

I. EXECUTIVE SUMMARY

____________________________________ 

FEC Office of Inspector General 

Special Review

USE OF TRANSERVE BENEFITS DURING 

THE FY 19 GOVERNMENT SHUTDOWN

July 1, 2020

WHY WE CONDUCTED THE REVIEW

We received information through the OIG 

hotline that three FEC employees allegedly 

violated the FEC Transit (TRANServe) Program 

rules by utilizing their transit benefits for 

personal use during scheduled telework days.

The OIG opened an investigation into the matter 

on May 22, 2019. As a result, we did not find 

definitive evidence to prove or disprove that the 

subject employees were using their TRANServe

benefits for personal use on telework days as 

alleged; however, we identified anomalies in 

TRANServe benefits during the FY 19 

government shutdown (December 22, 2018 

through January 25, 2019). 

WHAT WE DID

In efforts to provide FEC management insight 

into the TRANServe program’s internal controls 

and operations, we sought answers to the 

following questions: 

 Did FEC employees misuse their 

TRANServe benefits during the FY 19 

shutdown? 

 Has management established adequate 

internal controls to monitor compliance 

with FEC Commission Directive 54, 

Employee Transit Benefit Program?

WHAT WE FOUND

The 35-day shutdown consumed four out of five 

weeks in January 2019. Specifically, FEC 

employees were permitted to use their 

TRANServe benefits on 4 out of 21 (19%) 

working days in January 2019; thus, any 

TRANServe usage over 20% indicate potential 

abuse. As a result of our review, we found: 

1. Data indicating that 30 employees used 

more than 20% of their January 2019 

TRANServe benefits are indicia that those 

employees potentially violated Commission 

Directive 54, Section VI, part C (10)(a). 

2. That FEC Office of Human Resources 

(OHR) does not periodically review 

employees’ SmarTrip usage to identify 

unusual commuting patterns and recognize

significant changes in commuting activity or 

potential abuse of the program, as provided 

in FEC Commission Directive 54, Section V, 

part C(4). 

WHAT WE RECOMMENDED

We developed three recommendations to 

improve the operations and monitoring of the 

FEC TRANServe Program. These 

recommendations serve to enhance the integrity 

and effectiveness of the FEC TRANServe 

Program and the accuracy of the agency transit 

subsidy allocations. 
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

4

II. INTRODUCTION AND OBJECTIVE

_______________________________________________________________________________

The Federal Election Commission (FEC) Office of Inspector General (OIG) received an 

allegation through the OIG hotline that three FEC employees allegedly abused the FEC Transit

Program by utilizing their transit benefits for personal use during scheduled telework days. The 

FEC Transit Subsidy Program is administered by the U.S. Department of Transportation (DOT) 

and is designated as the “TRANServe Program.”

The OIG opened an investigation into the matter on May 22, 2019. Based on the evidence 

obtained, we could not determine whether employees had used their TRANServe benefits for 

personal use on telework days as alleged; however, we identified anomalies in TRANServe 

benefit usage during the fiscal year (FY) 19 government shutdown.1 The 35-day government 

shutdown occurred from December 22, 2018, through January 25, 2019.2

On September 6, 2019, the OIG closed the investigation and initiated this Special Review to 

evaluate employee use and agency monitoring of FEC Transit Subsidy benefits during the FY 19 

government shutdown. FEC Commission Directive 54, Employee Transit Benefit Program, 

provides in pertinent part that, “The objective of the FEC Transit Subsidy Program is to 

encourage FEC employees to use mass transit for commuting from their residence to and/or 

from their official duty station in efforts to reduce air pollution, noise, and traffic congestion.”

Therefore, the OIG sought answers to the following questions:

 1 A government shutdown occurs during a lapse in appropriations when Congress has not approved a federal budget 

for the upcoming fiscal year and non-essential functions close until lawmakers can agree on a budget.

2 FEC employees received their first furlough notice on December 26, 2018, in which FEC employees were 

instructed not to return to work unless required. A second furlough notice not to exceed 30 days was issued January 

23, 2019 to continue the shutdown for all furlough status employees. On January 25, 2019, the FY 19 government 

shutdown was resolved and employees were notified to return to work on their next regularly scheduled work day.

• Did FEC employees misuse 

their TRANServe benefits 

during the FY 19 shutdown?

• Has management established 

suitable internal controls to monitor 

compliance with Commission 

Directive 54, Employee Transit 

Benefit Program?
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

5

III. RESULTS

_________________________________________________________________________________ 

After gathering data from multiple sources and interviewing FEC staff and DOT representatives, 

the OIG identified the following findings:3

The 35-day shutdown consumed four out of five weeks in January 2019; thus, any used 

TRANServe allocations over 20% indicate potential misuse. FEC Commission Directive 54 

specifically provides that participants should not use the transit subsidy for any purpose other 

than commuting to the employees’ official duty stations and that any other uses constitutes 

“personal use.” As shown in Figure 1, this review identified 30 FEC employees whose use 

exceeded 20% during January 2019. Figure 1 further illustrates that seven of those 30 users 

expended more than 61% of their January 2019 monthly benefits. 

Figure 1 

TRANServe program rules concerning SmarTrip card usage likely exacerbated this problem. 

Specifically, Commission Directive 54 advises, but does not require, employees to obtain two 

SmarTrip cards from WMATA: one to contain transit subsidy benefits and one for personal use. 

 

3 The OIG gathered data from the DOT and cross-referenced the figures with information obtained from FEC OHR. 

17

6

3

4

>20-40% 41-60% 61-80% 81-100%

Number of 

Employees

Percentage of monthly allocation used (January 2019) 

Employee TRANServe Usage for January 2019 

(WMATA Users Only)

1. Data indicating that 30 employees used more than 20% of their January 2019 

TRANServe benefits are indicia that those employees potentially violated 

Commission Directive 54, Section VI, part C (10)(a). 
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

6

According to WMATA4 and DOT,

5 if a government employee elects to use only one SmarTrip 

card, the money is deposited into two separate “purses,” one for TRANServe benefits and the 

other for personal use. An employee can add money to their SmartTrip card either online or via 

a kiosk, but if an employee adds money to the card, it is deposited directly to the personal use 

purse. WMATA will deduct funds from the personal use account if the TRANServe purse is 

empty and/or if the individual pays for parking. Transit subsidy funds are non-transferable from 

one account to another. 

As a result, it is not clear if the 30 employees in question each utilized one SmarTrip card in 

January 2019 for both business and personal use.6 Additionally, it is not clear if those employees

that utilized one SmarTrip card knowingly and willfully used their January 2019 TRANServe 

allocations for personal use. Accordingly, we determined that the excess usage potentially 

violated FEC policy but was not dispositive in such a determination. 

The FEC Staff Director directed agency employees not to use transit benefits during the FY 19 

government shutdown in an email dated December 26, 2018 (see Figure 2).

Figure 2 – Relevant Excerpts of Staff Director’s Email of December 26, 2018 

(Highlighted Emphasis Added)

 

4 Retrieved from Washington Metropolitan Area Transit Authority - Claiming Transit or Parking Benefits.

5 Retrieved from U.S. Department of State Transit Subsidy Federal Employee Assistance Program (FAQs).

6 There may be a legitimate explanation for the apparent excess charges but FEC management should inquire further 

into each employee's TRANServe usage to reconcile the disparities identified in this report and take such action as 

may be warranted.
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

7

During the FY 19 government shutdown, FEC remained proactive by requesting that DOT 

TRANServe suspend all employee TRANServe benefits for February 2019 if the shutdown 

continued into February (see Figure 3). Agencies are required to notify DOT TRANServe before

the 20th of each month if an agency determines to suspend TRANServe benefits for the 

succeeding month. Therefore, if the FEC sought to suspend TRANServe benefits for the month 

of January 2019, the agency would have been required to make that request prior to 

December 20, 2018, a time when the shutdown was not in effect. 

Figure 3 – Email Request to Suspend FEC February 2019 TRANServe Benefits

In efforts to review external guidance related to the use of transit benefits during a government 

shutdown, the OIG reviewed the DOT Transit Benefit Approver Guide and the DOT Transit 

Benefit Applicant Guide, both dated July 2012, but found no relevant supplementary information. 

Additionally, the OIG reviewed the DOT Transit Benefit Application System Applicant Training

PowerPoint presentation updated September 2017; however, that training did not provide 

guidance associated with the use of transit benefits in the event of a government shutdown. As a 

result, the OIG proposes that the agency should provide additional guidance in its annual training 

and recertification process.
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

8

The OIG found that FEC management did not conduct any reviews of employee SmarTrip 

accounts following the FY 19 government shutdown. The Transit Subsidy Benefits Program 

Manager stated that the FEC OHR could manually review DOT TRANServe monthly reports 

upon request; however, OHR examines such reports on occasion when deemed necessary. DOT 

routinely generates monthly agency reports, but agencies must request a password from DOT to

access the protected documents. The agency lacks a formalized procedure to identify and

address employee monthly allocation and expenditure anomalies. Further, FEC does not have a 

mechanism or internal controls in place to assist management with identifying unusual 

commuting patterns or misuse of TRANServe benefits (i.e., personal use).

Moreover, the FEC relocated to a new physical location in March 2018; as such, the OIG found 

that nine of the 30 employees under review lacked current business addresses documented on 

their TRANServe applications. This data suggests that employee transit applications are not 

updated regularly and that at least nine applications are not accurate, as allocations are calculated 

by mileage to and from employees’ official duty stations and home addresses.

FEC should ensure internal controls are implemented into the FEC transit benefit program to:

• Identify and prevent non-compliance with the transit benefit policy;

• Deter employees from abusing or misusing program funds;

• Ensure that FEC OHR is forecasting its budget accurately; and

• Certify that FEC is expending its annual funds efficiently and effectively.

Further, in efforts to expend all FEC program dollars effectively and efficiently, the Office of the 

Chief Financial Officer (OCFO) advised the OIG that it contacts each program office on a 

quarterly basis to evaluate office budget projections for the remaining FY. If there appears to be 

an excess of program funds, the OCFO will work with each office to redistribute those funds to 

other programs in need to meet mission requirements.

7 OCFO confirmed that it redistributes

outstanding TRANServe funds to other FEC programs in need when warranted.

 7 The agency is issued one-year funds, therefore, any excess of funds is returned/lapsed to the U.S. Department of 

Treasury at the end of each FY.

2. That FEC Office of Human Resources (OHR) does not periodically review 

employees’ SmarTrip usage to identify unusual commuting patterns and 

recognize significant changes in commuting activity or potential abuse of the 

program, as provided in FEC Commission Directive 54, Section V, part C(4).
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

9

IV. RECOMMENDATIONS

_____________________________________________________________________________

Based on the foregoing findings, the OIG recommends the following actions for management to 

implement in efforts to enhance the effectiveness of the FEC TRANServe Program and to 

strengthen agency operations during a government shutdown.

1. That FEC regularly request, retrieve, and review monthly TRANServe 

subsidy benefit reports from the DOT in efforts to monitor benefit usage and

prevent fraud, waste, and/or abuse of government funds.

2. That FEC management incorporate guidance into Commission Directive 54 

that addresses transit benefits for furloughed and non-furloughed employees 

in the event of a government shutdown.

3. That FEC management include specific guidance related to the use of transit 

benefits during a government shutdown within the annual transit 

recertification application and within the agency PowerPoint training.
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

10

V. BACKGROUND AND SCOPE

_______________________________________________________________________________

In 2017, the OIG conducted an investigation (INV 16-06) regarding the misuse of employee 

transit benefits and found that OHR staff were not reviewing employee SmarTrip benefits on a 

periodic basis as required by Commission Directive 54. The findings were documented in 

Report of Investigation (ROI) dated March 3, 2017. In response, FEC management advised the 

OIG that OHR had implemented and administered the agency’s transit benefit program through 

TRANServe, a web-based application managed by the DOT.

Over a four-year period (FY16 – FY 19), the FEC received an average of $410,265.50 annually 

to allocate towards the TRANServe Program (see Figure 4).8 During that period, FEC has 

obligated an average of 87% of those funds annually. 9 Moreover, in FY 19 the percentage of 

obligated funds decreased by 18% from FY18 in large part due to the FY 19 government 

shutdown.

Figure 4 – FEC TRANServe Subsidy Benefits Budget From FY16 to FY 19

FY Transit benefits budget Obligated amount Percentage used

2016 $425,000.00 $394,818.00 93%

2017 419,500.00 349,780.00 83%

2018 380,745.00 365,925.00 96%

2019 415,817.00 324,552.00 78%

Average $410,265.50 $358,768.75 87%

At the OIG’s request, the FEC OHR provided the names of 245 employees who were enrolled in 

the TRANServe benefits program from December 2018 through January 2019. The information 

included each employee’s monthly allocation and usage rates. The OIG narrowed the scope of 

this review to focus on the month of January 2019 in efforts to determine if FEC employees 

misused transit benefits during the FY 19 government shutdown.

The OIG analyzed and evaluated 245 transit users and determined that 215 users would be

excluded from further review and/or complied with agency guidance for the reasons detailed 

herein:

• 34 employees were excepted from the shutdown by FEC management and continued to 

work.

o The OIG requested and received a list of 49 FEC employees whom the agency

excepted from the FY 19 government shutdown. The OIG found that 34 of the 49 

 8 All figures provided by the FEC OCFO.

9 The FEC Budget Director defines “obligated” as funds that are committed based on terminology provided by the 

U.S. Government Accountability Office (GAO)/OMB Circular A-11.
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

11

excepted employees were enrolled in the TRANServe Program. 10 The OIG 

determined that the foregoing employees should be excluded from further review.

• 136 employees utilized 20% or less of their January 2019 allocated TRANServe benefits.

o The OIG excluded from further review employees who utilized less than 20% of 

their monthly allocation benefits since the shutdown took effect four out of the 

five weeks in January. Employees (not deemed mission critical) who used less 

than 20% of their January 2019 TRANServe benefits appeared to comply with 

Commission Directive 54. Accordingly, the OIG determined that an employee 

who used less than 20% of their January 2019 allocation should be excluded from 

further review.

• 30 employees had identical expenditure amounts for December 2018 and January 2019, 

which indicated that the employees were potentially enrolled in an automatic payment 

deduction through various transit vendors each month.

o If an employee enrolls with CommuterDirect or directly with a service such as the 

Virginia Railway Express (VRE)/Maryland Rail Commuter (MARC), the 

employee may elect to have recurring orders for their TRANServe benefits. 

Allowing reoccurring orders will enable the employee to automatically receive 

their monthly TRANServe benefits without manually logging into the system to 

purchase tickets. The OIG determined that an employee with a regular and 

recurring payment should be excluded from further review. 

• 14 employees utilized VRE, MARC, automobile, bus, or a combination thereof (which 

may also include WMATA). 11 This increases the likelihood that a user would be 

enrolled in a regular and recurring payment system. 

o In additional efforts to capture accurate data for this review, we focused on

reviewing users who solely utilized WMATA metrorail assuming that those trips 

required employees to swipe their respective metro card each time a metrorail was 

used.

• 1 FEC employee was detailed to the Department of Justice beginning January 7, 2019. 

As a result of this detail assignment, the employee was not subject to the shutdown 

furlough and excluded from this review. 

 10 OPM provides in its Guidance for Shutdown Furloughs, dated September 2015, “In the context of shutdown 

furloughs, the term “excepted” is used to refer to employees who are funded through annual appropriations who are 

nonetheless excepted from the furlough because they are performing work that, by law, may continue to be 

performed during a lapse in appropriations. Excepted employees may include employees who are performing 

emergency work involving the safety of human life or the protection of property or performing certain other types of 

excepted work.”

11 WMATA includes Metrorail and/or Metrobus.
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

12

As a result, the OIG focused this review on 30 (12% of TRANServe users) FEC employees 

who:

• Were furloughed during the FY 19 shutdown;

• Expended more than 20% of their January 2019 TRANServe benefits;

• Did not appear to have a regular or recurring monthly payment activated; and

• Solely used WMATA metro for commuting purposes.

Figure 5 provides a graphic illustration of the breakdown of the criteria and aforementioned data

used to scope this review. 

Figure 5 – Criteria Used to Narrow FEC TRANServe Users Under Review

Certified WebTA timesheets of the second pay period for FY 19 provided additional information 

related to the number of days that the 30 employees under review commuted to work in January 

2019 following the shutdown. Figure 6 indicates that the 30 employees under review traveled to 

work an average of 2.60 days in January 2019. Additionally, the OIG reviewed the employees’

certified TRANServe applications in conjunction with their timesheets to determine the 

maximum commuting expense for January 2019.

30 

Users 

reviewed

1 - Detail 

assignment with 

another agency

14 - Use rail or 

combination of vendors

30 - Perceived to have regular and 

recurring payments

136 - Expended more than 20% of January 

2019 TRANServe benefits

34 -Were furloughed during the FY 19 shutdown

245 - FEC employees enrolled in TRANServe benefits 

during FY19 government shutdown

211

75

45

31

Running 

Total

30
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

13

Figure 6

Number of days that employees

were permitted to commute to work 

in January 2019

Number of employees that 

commuted to work 

1 2

2 14

3 8

4 6

Based on our review, we conclude that 30 employees used more than 20% of their January 2019 

TRANServe benefits. Figure 7 provides individual transit totals for January 2019 calculated by 

multiplying daily commute cost by the number of commutes the employee made to the FEC 

following the furlough.12 Collectively, these individuals should not have exceeded a total of 

$547 in subsidized transit benefits during the last week of January. However, the actual total 

expenditures for these individuals were $1,459, which may represent excessive disbursement of 

$911, and is indicia that those employees violated Commission Directive 54. As a result, in 

efforts to ensure accountability, we have provided the names and related data of those employees 

to management for action deemed appropriate.

Figure 7 – Commuting Expenses Calculated Using Transit Applications and Timesheets

Per Employee13

Employee

Daily 

expense14

Authorized 

number of 

commutes 

in January 

201915

Authorized 

expenses

for January 

2019

Actual 

expenses 

for January 

201916

Potential 

unauthorized 

excess

1 $8.00 2 $16.00 $32.20 $16.20

2 $4.80 3 $14.40 $24.00 $9.60

3 $18.30 3 $54.90 $35.60 ($19.30)17

4 $6.90 4 $27.60 $80.10 $52.50

5 $11.10 3 $33.30 $76.80 $43.50

6 $5.20 2 $10.40 $44.00 $33.60

 12 The daily commute cost for the employee was provided by the most current TRANServe application on file with 

the agency during the review. The certified WebTA timesheets for January 2019 provided the number of commutes 

the employee made to the office.

13 The OIG will refer this data along with employee names to FEC management for further evaluation regarding

whether each employee exceeded their TRANServe benefit allocation for January 2019 and such further action as 

may be warranted. 14 Per the employee’s most current certified TRANServe application. 15 Per the employee’s certified WebTA timesheet from the second pay period of 2019. 16 Per data provided by the Department of Transportation.

17 The data reflects that this employee commuted to the office three days at $18.30 per day, but only expended 

$35.60, implying that the individual did not use TRANServe funds for at least one daily commute. However, this 

individual’ expenditures are included because he/she expended 22 percent of his/her January 2019 benefits. 
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

14

7 $9.10 2 $18.20 $25.20 $7.00

8 $4.50 1 $4.50 $28.25 $23.75

9 $4.50 4 $18.00 $38.10 $20.10

10 $6.00 1 $6.00 $33.40 $27.40

11 $12.00 2 $24.00 $108.75 $84.75

12 $4.50 2 $9.00 $35.00 $26.00

13 $7.00 3 $21.00 $32.75 $11.75

14 $4.00 4 $16.00 $21.55 $5.55

15 $8.90 2 $17.80 $27.70 $9.90

16 $6.00 4 $24.00 $49.60 $25.60

17 $7.60 3 $22.80 $56.45 $33.65

18 $6.50 3 $19.50 $48.40 $28.90

19 $8.30 2 $16.60 $127.00 $110.40

20 $4.50 2 $9.00 $51.45 $42.45

21 $5.30 4 $21.20 $24.65 $3.45

22 $4.50 2 $9.00 $34.75 $25.75

23 $6.00 2 $12.00 $29.35 $17.35

24 $5.90 4 $23.60 $26.05 $2.45

25 $10.20 2 $20.40 $173.00 $152.60

26 $1.70 3 $5.10 $8.50 $3.40

27 $4.50 3 $13.50 $85.80 $72.30

28 $12.80 2 $25.60 $31.80 $6.20

29 $10.30 2 $20.60 $41.10 $20.50

30 $6.50 2 $13.00 $27.25 $14.25

Total - - $547.00 $1,458.55 $911.55

Additionally, the agency did not complete any subsequent reviews of TRANServe program 

expenditures following the FY 19 government shutdown, nor has it done so on a regular and 

recurring basis to determine unusual spending and/or abuse of government funds. The FEC 

relocated to a new physical location in March 2018 and as such, the OIG found that nine 

employee TRANServe applications did not reflect the agency’s current address. Figure 8 reveals 

that on average, the 30 applicants had not recertified their transit benefits in 326 days. The 

longest period between benefit recertification exceeded 486 days.

Figure 8 – Time Since Certification Per Employee

Employee

Date of last 

certification

Number of days 

since certification

1 2/28/2018 326

2 9/21/2017 486

3 8/2/2018 171

4 2/15/2018 339

5 9/20/2017 487
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

15

6 9/21/2017 486

7 9/21/2017 486

8 12/6/2018 45

9 3/5/2018 321

10 10/3/2018 109

11 3/14/2018 312

12 2/22/2018 332

13 6/12/2018 222

14 9/21/2017 486

15 2/22/2018 332

16 12/18/2018 33

17 2/22/2018 332

18 9/21/2017 486

19 2/22/2018 332

20 3/5/2018 321

21 2/22/2018 332

22 9/21/2017 486

23 5/7/2018 258

24 2/15/2018 339

25 9/19/2017 488

26 10/3/2018 109

27 8/2/2018 171

28 9/21/2017 486

29 2/15/2018 339

30 2/22/2018 332
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

16

VI. CONCLUSION

_________________________________________________________________________________

As a result of our review, it is not clear if the 30 employees in question utilized one SmarTrip 

card in January 2019 for both business and personal use. Additionally, it is not clear if those 

employees that utilized one SmarTrip card knowingly and willfully used their January 2019 

TRANServe allocations for personal use. Accordingly, we determined that the excess usage 

potentially violated FEC policy but was not dispositive in such a determination.

The OIG found that FEC management did not conduct any subsequent reviews of employee 

SmarTrip accounts following the FY 19 government shutdown. The agency does not have a 

procedure in place to address employee monthly allocation and expenditure anomalies. Further, 

FEC does not have a mechanism or internal control(s) in place to assist management with 

identifying unusual commuting patterns or misuse of TRANServe benefits (i.e., personal use).

FEC management remained proactive during the FY 19 government shutdown by providing 

continuous updates to staff and implementing steps to suspend agency TRANServe benefits. 

However, when the agency transitioned to TRANServe in 2017, Commission Directive 54, 

“Employee Transit Benefit Program,” was not updated to reflect changes resulting from the new 

service. The agency should update the FEC transit program policy and improve and strengthen 

the design of its internal controls related to the monitoring of the TRANServe program in efforts 

to eliminate fraud, waste, and/or abuse.

Considering the agency’s current state of remote operations due to the coronavirus (COVID-19) 

pandemic, we highly encourage FEC management to review employee TRANServe expenditures 

as recommended in this report in efforts to prevent fraud, waste, and/or abuse of government 

funds.
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

17

APPENDIX A: RELEVANT STATUES, POLICIES, AND GUIDANCE

_______________________________________________________________________________

A. FEC, Commission Directive 54, Employee Transit Benefit Program, signed January 8, 2013, 

provides in pertinent part:

Section I:

The objective of the FEC Transit Subsidy program 

is to encourage FEC employees to use mass transit 

to commute from their residence to and/or from 

their official duty station in order to reduce air 

pollution, noise and traffic congestion.

Section V (C)(4) The Director of Human Resources shall:

4. periodically review employee’s SmarTrip card 

usage to ensure no unusual commuting patterns, 

significant changes in commuting activity or 

potential abuse of program; and

Section V (F)(3) The Transit Subsidy Benefits Program 

Manager shall:

3. Monitor program integrity by ensuring 

completion of required internal controls and 

reviewing any Office of Inspector General or other 

review reports on the transit subsidy program;

Section VI (C)(10) Personal Use; Temporary Conditions 

Impacting Full Use of Subsidy.

(a) Participants should not use the transit subsidy 

for any purpose other than commuting to the 

Official Duty Station (ODS). Use for a purpose 

other than commuting to the ODS constitutes 

"personal use." Employees are advised, though not 

required, to obtain two SmarTrip cards from 

WMATA: one to contain transit subsidy benefits 

and be used for commuting, and one for personal 

use.
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

18

B. U.S. Office of Management and Budget (OMB), OMB Circular No. A-11, 2019, provides in 

pertinent par:

Section 124.2 Agency heads, in consultation with 

their general counsels, must develop and maintain 

plans for an orderly shutdown in the event of a lapse 

in appropriations.

C. U.S. OPM, Guidance for Shutdown Furlough, dated September 2015, 

provides in pertinent part:

Section B (1)(A) Who are “excepted” employees?

In the context of shutdown furloughs, the term 

“excepted” is used to refer to employees who are 

funded through annual appropriations who are 

nonetheless excepted from the furlough because 

they are performing work that, by law, may 

continue to be performed during a lapse in 

appropriations. Excepted employees include 

employees who are performing emergency work 

involving the safety of human life or the protection 

of property or performing certain other types of 

excepted work. Agency legal counsels, working 

with senior agency managers, determine which 

employees are designated to be handling “excepted” 

and “non-excepted” functions.
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

19

APPENDIX B: ACRONYMS

________________________________________________________________________________

DOT U.S. Department of Transportation

FEC Federal Election Commission

FY Fiscal Year(s)

GAO U.S. Government Accountability Office

MARC Maryland Rail Commuter

OCFO Office of Chief Financial Officer

ODS Official Duty Station

OHR Office of Human Resources

OIG Office of Inspector General

OMB U.S. Office of Management and Budget

OPM U.S. Office of Personnel Management

ROI Report of Investigation

VRE Virginia Railway Express

WMATA Washington Metropolitan Area Transit Authority
Special Review 19-01: Use of TRANServe Benefits During FY 19 Government Shutdown

20

APPENDIX C: MANAGEMENT RESPONSE

________________________________________________________________________________

This page is intentionally left blank. 
 FEDERAL ELECTION COMMISSION WASHINGTON, D.C. 20463

July 30, 2020 

MEMORANDUM

To: Christopher Skinner 

Inspector General

From: Kate Higginbothom 

Deputy Staff Director for Mgmt. & Admin.

Subject: Management Response to Special Review 19-01: 

Use of TRANServe Benefits during the FY 19 Government Shutdown 

This memorandum responds to the findings and recommendations from the Office of Inspector 

General’s (OIG) Special Review 19-01 “Use of TRANServe Benefits During the FY 19 

Government Shutdown (Dec 22, 2018 – Jan 25, 2019),” which were transmitted to Federal 

Election Commission (FEC) management by email dated July 1, 2020. 

FEC management is committed to working with OIG regarding the agency’s transit benefit 

program, as evidenced by management’s in-depth review of the report and preliminary feedback 

while it was in draft form, and detailed communications with members of the OIG team while 

the report was being developed. FEC management takes the findings and recommendations of 

OIG’s report seriously and has developed the following planned corrective actions to address the 

recommendations in the Special Review. 

Recommendation 1: That FEC regularly request, retrieve, and review monthly TRANServe 

subsidy benefit reports from the Department of Transportation (DOT) in efforts to monitor 

benefit usage and prevent fraud, waste, and/or abuse of government funds. 

The Office of Human Resources (OHR) is creating a TRANServe Control Program, wherein it 

will annually review use of the TRANServe program and perform monitoring activity regarding 

employees’ usage of transit benefits utilizing the reports available from DOT. This review will 

ensure that all employees who participate in the program have updated their transit applications 

to reflect the correct address for the FEC headquarters and monitor the percentage of benefits 

used by employees to assess potential anomalies in employees’ commuting patterns. During 

times in which normal employee commuting patterns are suspended, OHR will monitor the use 

of TRANServe at a time deemed appropriate based on the situation causing the suspension of 
normal commuting patterns. For example, in cases where the agency is using extended telework, 

OHR will monitor the use of TRANServe on an ongoing basis, as it is currently doing while the 

agency is under an evacuation order due to the COVID-19 pandemic. In any future government 

shutdowns, OHR will evaluate the use of TRANServe once the agency is permitted to resume 

normal operations to avoid potential violations of the Anti-Deficiency Act. 

Recommendation 2: That FEC management incorporate guidance into Commission Directive 

54 that addresses transit benefits for furloughed and non-furloughed employees in the event of a 

government shutdown. 

Management plans to draft an updated version of Commission Directive 54 to address employee 

use of transit benefits during a government shutdown, as recommended by OIG. Any updates to 

Directive 54 are subject to approval by the Commission. The Federal Election Campaign Act 

(FECA) requires that the Commission have a quorum of four or more commissioners to carry out 

many agency functions. The FEC has been without a quorum since July 4, 2020. Due to this 

loss of quorum, the Commission is currently unable to approve any new or revised Commission 

Directives. Therefore, timing for the adoption of a revised version of Directive 54 is contingent 

on when the Commission regains a quorum. 

Recommendation 3: That FEC management include specific guidance related to the use of 

transit benefits during a government shutdown within the annual transit recertification 

application and within the agency PowerPoint training. 

To address OIG’s concerns about management giving staff specific guidance related to the use of 

transit benefits during a government shutdown, management plans to update the FEC’s Plan for 

Agency Operation in the Absence of an Appropriation (“shutdown plan”) to include a 

requirement for OHR to send a separate, standalone email to staff regarding use of transit 

benefits during a government shutdown. OHR will send this email to all agency employees at 

the start of any future shutdown. This email will be in addition to including information about 

transit subsidy use in the furlough notice emails that are sent to all staff, and is similar to the 

standalone emails that have been sent to employees regarding transit benefits during the COVID19 pandemic. Additionally, management will work with the Office of the Chief Information 

Officer to update the TRANServe training materials, which were developed by DOT, to include 

guidance covering the use of transit benefits during a government shutdown. This training is 

mandatory for all new program participants before they can receive transit benefits from the 

agency. 

Other Proposed Management Action

In addition to the three primary recommendations, OIG’s report suggests that management 

should inquire further into the TRANServe usage of the employees who utilized more than 20 

percent of their normal monthly benefit during January 2019 to reconcile the disparities 

identified in the report and take such as action as may be warranted. Management appreciates 

OIG sharing the specific findings from its view and takes seriously any potential misuse of 

transit subsidy funds by employees. However, at this time, management does not plan to inquire 

further into these specific employees’ TRANServe usage during the shutdown to reconcile the 

apparent disparities identified in the Special Review given the amount of time that has elapsed 

2
since the time period in question and the relatively small amount of funds potentially misused. 

Since the FY 2019 partial federal government shutdown ended on January 25, 2019, which was 

over 18 months ago, we do not believe that questioning employees regarding commuting 

anomalies during that period is likely to yield actionable information, especially when 

TRANServe records do not provide enough information to substantiate findings of waste, fraud, 

or abuse on a per-employee basis, as noted in OIG’s report. Additionally, of the list of 30 

employees who potentially misused funds, which OIG supplied to management during the draft 

phase of the report, five of the individuals are no longer employed with the Commission. 

Furthermore, the Special Review identifies potential issues regarding a total of $911.55 in transit 

benefits for all agency employees during the period of time that was the subject of this review. 

The agency allocated $324,552 to the transit benefit program for FY 2019. As such, the amount 

potentially in question in the Special Review represents only 0.28 percent of the funding that the 

agency allocated to the transit benefit program for FY 2019. Given the de minimis amount of 

the potential misuse, we do not believe that further inquiry would be the best use of management 

and OHR staff resources. We also note that, during the agency’s fourth quarter meeting with 

TRANServe on July 23, 2020, the FEC’s DOT account representative stated that TRANServe 

does not currently have a mechanism for an employee to repay their TRANServe account if they 

find that transit benefit funds were misused, whether accidentally or otherwise, for personal 

purposes. 

Due to the length of intervening time since the government shutdown, the low dollar amount of 

aggregate transit benefits in question, and the number of employees no longer at the agency, 

management does not believe it is prudent to inquire further into each employee’s TRANServe 

usage during the FY 2019 partial government shutdown. We believe that our other proposed 

corrective actions, which are aimed at curbing any future misuse of transit subsidy funds, will be 

the most effective ways to address the findings of this report on a forward-looking basis. 

Management appreciates the opportunity to provide a response to OIG’s Special Review 19-01 

“Use of TRANServe Benefits During the FY 19 Government Shutdown (Dec 22, 2018 – Jan 25, 

2019),” and plans to move forward implementing the corrective actions described herein. If 

there are any questions regarding this response, please feel free to reach out to me at (202) 694-

1594 or khigginbothom@fec.gov, or Lauren Lien, Human Resources Director, at (202) 694-1135 

or llien@fec.gov. 

cc: Commissioner Offices

Alec Palmer, Staff Director

Lisa Stevenson, Acting General Counsel 

Gregory Baker, Deputy General Counsel for Administration

John Quinlan, Chief Financial Officer 

Gilbert Ford, Budget Director 

Lauren Lien, Human Resources Director

3