Semiannual Report to Congress

April 1, 2011 – September 30, 2011

November 2011

Federal Election Commission - Office of Inspector General

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

April 1, 2011 - September 30, 2011

November 16, 2011

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 April 1, 2011 through September 30, 2011. During this reporting period, the FEC’s 

Inspector General commenced, with the assistance of contract auditors, the annual audit 

of the FEC’s financial statements. The audit was completed on time and management 

issued the final Performance and Accountability Report on November 15, 2010. We are 

pleased to report that the Commission received an unqualified opinion from the Inspector 

General’s independent auditors. We will provide additional comments on this audit in the 

next Semiannual Report to Congress. 

During the semiannual period, the OIG completed, with the assistance of contract 

auditors, the 2010 Follow-Up Audit of Procurement and Contract Management. This 

follow-up audit was released in June 2011. Management’s responses to the findings and 

recommendations are discussed in detail in that follow-up audit 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,

Cynthia L. Bauerly

Chair

Enclosure

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

OFFICE OF THE CHAIRMAN
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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 SEPTEMBER 30, 2011

Number of Reports Questioned Costs Unsupported 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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April 1, 2011 - September 30, 2011

MANAGEMENT REPORT ON 

INSPECTOR GENERAL ISSUED REPORTS WITH

RECOMMENDATIONS TO PUT FUNDS TO BETTER USE

FOR THE SIX-MONTH PERIOD ENDING SEPTEMBER 30, 2011

Number of Reports Funds to be

Put 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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April 1, 2011 - September 30, 2011

FEDERAL ELECTION COMMISSION 

 WASHINGTON, D.C. 20463 

 Office of Inspector General

A Message from the Inspector General 

During the last six months, the Federal Maritime Commission Office of Inspector 

General conducted a peer review on the Federal Election Commission Office of Inspector 

General. I am happy to announce that we received a peer review rating of pass. The 

system of quality control which encompasses the OIG’s organizational structure and 

policies adopted and procedures established to provide it with reasonable assurance of 

conforming to Government Auditing Standards is reviewed during the peer review 

process. I would like to congratulate the OIG staff who ensures that all of our work 

follows established policies and procedures and continues to produce significant work 

products that aid the Federal Election Commission in meeting its mission in an efficient 

and effective manner. We also conducted a peer review of the Commodity Futures 

Trading Commission Office of Inspector General during this reporting period. 

Additional information concerning these two peer reviews can be found in Appendix A 

of this report. 

I would also like to welcome a new auditor, Shellie Purnell-Brown who joined our staff 

this summer. She has already proven to be an asset to the office. The staff of the OIG 

continues to produce quality products in every discipline. I look forward to the next six 

months working alongside these dedicated people. 

Lynne A. McFarland 

Inspector General 

Federal Election Commission 

October 28, 2011

 
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Office of Inspector General Semiannual Report to Congress

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vii

April 1, 2011 - September 30, 2011

Executive Summary 1

The Federal Election Commission 3

Office of Inspector General 4

OIG Audit Activity 5

OIG Audit Follow-up Activity 6

OIG Inspections 7

OIG Hotline Information 9

OIG Investigations 11

Additional OIG Activity 12

Council of the Inspectors General on Integrity and Efficiency (CIGIE) Activity 13

OIG Contacts 14

List of Training, Meetings and Conferences Attended by OIG Staff 15

Reporting Requirements 17

Table I – Questioned Cost 18

Table II – Funds Put To Better Use 19

Table III – Summary Of Audit Reports With 20

Corrective Actions Outstanding For More Than Six Months

Appendix A: Peer Review Results 21

Appendix B: OIG Fiscal Year 2012 Work Plan 23

Table of Contents
Office of Inspector General Semiannual Report to Congress

This Page Intentionally Left Blank
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April 1, 2011 - September 30, 2011

Executive Summary

The OIG also completed a follow-up audit on procurement and contract management. The 2010 

Follow-up Audit of Procurement and Contract 

Management – OIG-10-02 was conducted by Cherry 

Bekaert & Holland, LLP (CBH). The audit objectives 

were to determine whether management implemented the agreed upon actions for each of the fifteen 

(15) recommendations and whether the nine (9) findings had been fully resolved. CBH selected a sample 

of procurement actions to test and interviewed staff 

to determine if the recommendations were fully implemented. Testing revealed that only three (3) of the 

fifteen (15) recommendations had been fully implemented and several other recommendations were 

added to the follow-up audit. For detailed information 

regarding the 2010 Follow-up Audit of Procurement 

and Contract Management, see the section entitled 

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

In addition to the contract audits, the OIG is in the 

process of conducting an inspection of the FEC’s 

Kastle Key system. The OIG met with the Manager 

of the Administrative Services Division along with 

Kastle Key administrators to gain an understanding 

of the day to day business processes for managing 

the Kastle Key function. The OIG made requests for 

report data and management’s policies and procedures to review the adequacy, effectiveness, and efficiency of management’s overall business processes, Kastle Key data, and monitoring procedures. The 

OIG reviewed the documentation and conducted follow-ups via meetings and e-mails with management 

regarding the provided information. The OIG currently has a status meeting scheduled with management 

to discuss the preliminary issues identified. For detailed information pertaining to the OIG’s Kastle Key 

Inspection, see the section entitled OIG Inspections 

(starting on page 7).

The evaluation process of hotline complaints are 

conducted by the Chief Investigator and the Deputy 

The Inspector General Act of 1978, as amended, 

states that the Inspector General is responsible for 

conducting audits, inspections, investigations, and 

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

resources and programs that prevent fraud, waste, 

abuse and mismanagement. The IG act also requires 

the Inspector General to keep the Commission and 

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

This semiannual report includes the major accomplishments of the Federal Election Commission 

(FEC) Office of Inspector General (OIG), as well as 

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

significant activities of the OIG. Additional details 

pertaining to each activity (audits, hotline, and investigations) can be found in subsequent sections of 

this report.

The OIG has exercised another option year with 

Leon Snead & Company (LSC) to conduct the FEC’s 

2011 Financial Statement Audit. LSC has completed 

the planning phase, review and evaluation phase, 

and the interim testing phase of the 2011 audit. The 

OIG has provided continuous monitoring throughout 

the audit process and conducted bi-weekly status 

meetings with management and LSC. At the completion of the interim testing phase, the auditors have 

issued twelve (12) notice of findings and recommendations to management. The auditors will be completing final testing during the month of October and 

providing the final deliverables to the OIG with the 

anticipation of a final audit report being released 

November 14, 2011.

For detailed information pertaining to the FEC’s 2011 

Financial Statement Audit, see the section entitled 

OIG Audit Activity (starting on page 5).
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Office of Inspector General Semiannual Report to Congress

Inspector General. During the semiannual reporting 

period, the OIG received two (2) new hotline complaints in which one (1) hotline complaint developed 

into an investigation. Further, one (1) hotline complaint the OIG opened prior to the current semiannual reporting period, was closed. For details regarding 

the FEC OIG’s hotline complaints, see the section 

entitled OIG Hotline Information (starting on page 

9).

In addition, the OIG has incorporated a new hotline system for FEC contractors and FEC employees to anonymously report fraud, waste, or 

abuse, MySafeWorkPlace. MySafeWorkPlace allows any FEC contractor and/or FEC employee to 

report fraud, waste, or abuse via telephone with a 

MySafeWorkPlace operator or a direct online submission. The complainant has the option of remaining completely anonymous or providing their contact 

information. This system also gives the complainant the ability to anonymously respond to follow-up 

questions from the OIG. For details regarding the 

FEC OIG’s new hotline system, MySafeWorkPlace, 

see the section entitled OIG Hotline Information 

(starting on page 9).

Regarding OIG investigations, the OIG opened one 

(1) investigation during this semiannual reporting 

period and also closed (1) investigation. The investigation that was closed during this reporting period 

involved the misuse of Transit Subsidy benefits by 

an FEC employee. For further details regarding the 

OIG’s investigation, see the section entitled OIG 

Investigations (starting on page 11).
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April 1, 2011 - September 30, 2011

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

Presidential elections.

The Commission consists of six members who are 

appointed by the President and confirmed by the 

Senate. Each member serves a six-year term, and 

two seats are subject to appointment every two 

years. By law, no more than three Commissioners 

can be members of the same political party, 

and at least four votes are required for any official Commission action. The Chairmanship of the 

Commission rotates among the members each year, 

with no member serving as Chairman more than 

once during his or her term. Currently the FEC has 

a full complement of Commissioners – Cynthia L. 

Bauerly, Chair; Caroline C. Hunter, Vice Chair; and 

Commissioners Donald F. McGahn II; Matthew S. 

Petersen; Steven T. Walther; and Ellen L. Weintraub.
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Office 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 deficiencies in FEC 

agency programs and operations, and the need for 

corrective action.

The OIG welcomed Shellie Purnell-Brown (pictured) 

to the OIG staff in August 2011. Mrs. Purnell-Brown 

is a certified public accountant with over 20 years 

of experience in the private sector. She has spent 

most of her career in internal auditing but also held 

various positions in finance and accounting. Shellie 

has a background in several industries which include 

telecommunications and consumer goods. The 

OIG's former Senior Auditor, Mrs. Irene B. Porter, 

resigned from the FEC OIG in March 2011 in order 

to assume greater responsibilities with the Federal 

Housing Finance Agency OIG.

Inspector General Lynne A. McFarland (left) pictured with new OIG 

auditor Shellie Purnell-Brown
5

April 1, 2011 - September 30, 2011

Audit of the Federal Election Commission’s 

Fiscal Year 2011 Financial Statements

Assignment Number: OIG – 11-01

Status: In Progress

The OIG exercised another contract option year with 

Leon Snead & Co. (LSC) to conduct the FEC’s annual financial statement audit. The OIG and LSC 

held the audit entrance conference for the FEC’s 

2011 financial statement audit on April 27, 2011. 

Audit work commenced on May 16, 2011 and LSC 

has completed the planning phase; review and evaluation phase; and interim testing. 

The OIG approved LSC’s planning documents and 

audit program for the 2011 financial statement audit. The planning phase consisted of LSC briefing 

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 and/or standards for the 2011 financial statement audit. This year, the auditors included 

a more detailed review of the FEC’s intragovernmental receipts and reconciliations to adhere to 

the Department of Treasury financial management 

guidance. In addition, LSC also added audit testing steps to review the FEC’s controls over copyright 

software. 

During the audit review and evaluation phase, LSC 

followed up with management regarding the status 

of prior year findings and recommendations. Further, 

LSC reviewed FEC’s compliance with applicable 

laws and regulations and the existence and effectiveness of internal controls. Status meetings were 

held bi-weekly with the auditors and FEC management to discuss audit issues and provide an update 

of the audit progress. 

OIG Audit Activity

LSC also completed the interim testing phase during this semiannual period. The OIG provided assistance to the auditors in completing the new audit 

step of reviewing the controls over copyright software. Specifically, the OIG assisted in retrieving 

the proper audit documentation from management 

for the auditors to review. In addition, the auditors 

and OIG auditor met with the Chair and Vice Chair 

of the Commission to fulfill the requirements of 

SAS 114: Communication with Those Charged with 

Governance. The auditors provided the Chair and 

Vice Chair with an explanation of their audit role and 

responsibilities, an update regarding the progress of 

the audit, and a summary of the audit issues identified and provided to management. At the completion 

of the interim testing phase, the OIG reviewed LSC’s 

interim audit workpapers. 

The OIG also reviewed the notice of findings and 

recommendations (NFRs) prior to distribution to 

management by the auditors. The review and evaluation phase, and interim testing phase, identified 

twelve (12) audit issues that were provided to management as NFRs. The auditors will begin final testing in October 2011 and status meetings will be held 

weekly during the month of October. The final audit 

report is scheduled to be finalized and released by 

November 14, 2011.
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Office of Inspector General Semiannual Report to Congress

2010 Follow-Up Audit of Procurement and 

Contract Management

Assignment Number: OIG – 10-02 

Status: Released June 2011

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

ProcurementandContractManagement2010.pdf

In September 2010, the OIG awarded a contract to 

the auditing firm of Cherry, Bekaert & Holland (CBH) 

LLP to conduct a follow-up audit of the OIG’s 2008 

Audit of Procurement and Contract Management - 

OIG-08-02. The objective of the audit follow-up review was to determine whether each of the nine (9) 

audit findings contained in the 2008 audit report had 

been fully resolved.

At the beginning of the audit, the OIG held a meeting with the CBH auditors on September 27, 2010 to 

discuss the general working arrangements and provide background information for the follow-up audit. 

A formal entrance conference with key FEC personnel responsible for procurement activities was held 

on October 14, 2010. After which, the CBH auditors completed the following planning steps, among 

others: 1) reviewed current and prior FEC procurement policies and procedures; 2) interviewed the 

FEC Contracting Officer on several occasions; and 

3) reviewed a sample of procurement files in order 

to gain an understanding of current procurement 

processes and develop a detailed audit plan. The 

auditors submitted draft audit plans to the OIG and a 

final audit plan was approved on March 3, 2010. 

The contractors then selected an audit sample and 

commenced detailed testing to determine whether 

the 2008 audit recommendations had been fully 

implemented. 

OIG Audit Follow-up Activity

During the testing phase, CBH reviewed: 

•	 contract files for compliance with the Federal 

Acquisition Regulation; FEC procurement 

policies and procedures; and federal laws and 

regulations;

•	 held interviews with FEC employees who were 

identified as Contracting Officer Technical 

Representatives (COTRs) and Points of Contact 

(POCs) regarding their specific roles and responsibilities for FEC contracts; and

•	 discussed with management preliminary issues 

identified throughout audit testing. 

The auditors finalized all audit steps and provided a 

draft report to management for review and comment. 

The final 2010 Follow-up Audit of Procurement and 

Contract Management report was released by the 

OIG on June 9, 2011. The auditors concluded that 

twelve (12) of the 2008 audit’s fifteen (15) recommendations were still unresolved and several new 

recommendations were added to address new weaknesses. This audit follow-up shows that the FEC’s 

procurement function continues to experience great 

risk and has made little progress since 2008 to address the findings in the initial performance audit. 
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April 1, 2011 - September 30, 2011

OIG INSPECTIONS

Kastle Key Inspection

Assignment Number: OIG –11-02 

Status: In Progress

The OIG’s inspection of the Kastle key system commenced during this reporting period. Kastle is the 

building security system that is utilized to control 

physical access to the FEC building during nonworking hours. This inspection is based upon the 

OIG’s annual workplan and previous OIG audits and 

investigations that identified weaknesses with the 

Kastle key system. The purpose of this inspection 

is to identify any management processes or controls 

concerning the FEC’s Kastle key system that can 

be improved, and provide management with recommendations to help strengthen this function.

The scope of this inspection includes a review of 

the internal controls over the Kastle key system and 

the overall process for managing Kastle keys. The 

inspection will include a review of program documentation and an assessment of the adequacy of 

policies and procedures for managing the Kastle key 

system. In addition, inspection testing will determine 

if internal controls necessary to detect and prevent 

unauthorized keyholders, and misuse of FEC issued 

Kastle keys, are operating effectively. 

The OIG held an entrance conference on August 3, 

2011 to provide management with an understanding of the purpose, scope, and inspection plan for 

the Kastle key inspection. The OIG reviewed the 

Kastle key policies and procedures and is in the process of completing detailed testing. As of the end 

of this reporting period, the OIG planned a meeting in October 2011 with the Administrative Services 

division manager and program staff to discuss 

the status of open items and potential inspection 

findings. 

The Kastle key inspection testing is scheduled to 

be completed in October 2011 and a report issued shortly thereafter. The OIG is confident this 

inspection will provide valuable information to the 

Commission and management to ensure internal controls over the FEC’s Kastle key function are 

strengthened and effective.

Security Inspection

Assignment Number: OIG –11-03 

Status: In Progress

The OIG’s inspection of the FEC’s building security 

contract commenced during this reporting period. 

Physical security and access control for the FEC 

building at 999 E Street, NW, Washington, DC, is 

covered by a contract (the “Contract”) with a contract guard company (the “Contractor). The purpose 

of this inspection is two-fold. The first purpose is to 

review the Contract, policies and procedures, standing orders, and guard facilities to clarify responsibilities and authorities. This goal is informational and 

intended to provide FEC management with a basic 

understanding of the responsibilities and authorities 

of the parties to and beneficiaries of the Contract. 

The second purpose is to determine compliance 

with selected Contract provisions, policies and 

procedures. 

The completed inspection will encompass the 

Contract; relevant policies, procedures, and standing orders concerning the Contract, guards and 
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Office of Inspector General Semiannual Report to Congress

Contractor; types of routine and incident logs, forms 

and reports kept or filed by the guards or Contractor; 

the selection and training of guards; duties, responsibilities and authority of the guards and Contractor; 

lines of authority and communication, and chain-ofcommand, for the guards and Contractor; and the 

roles and responsibilities of all FEC offices and personnel and non-FEC entities concerning the guards 

and Contractor. 

The 2011 security inspection is scheduled to be 

completed during the next reporting period. 
9

April 1, 2011 - September 30, 2011

OIG hotline Information

The OIG hotline exists to enable FEC employees, 

FEC contractors, and the public to have direct and 

confidential contact with the OIG. The OIG hotline 

had until recently consisted primarily of an email address, and telephone number, which is answered 

during normal business hours, and utilizes voicemail after hours and on weekends. On September 

20, 2011, the OIG launched a new hotline service 

offered through a contractor. The new OIG hotline 

service allows employees and contractors to file a 

complaint using either a toll free telephone number 

that is answered by a live operator twenty-four (24) 

hours a day, including nights and weekends, or a 

web-based complaint form. The new OIG hotline 

service is available only for use by FEC employees 

and contractors. The public, as well as FEC employees and contractors, may still make a hotline complaint through the main telephone number, the OIG 

email account, the U.S. mail, facsimile, among other 

methods. 

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 by the OIG 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 

classified as either high or low priority complaints. 

High priority complaints are investigated and low 

priority complaints are either closed with no action 

or referred to 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, two (2) 

new hotline complaints were opened and one (1) 

hotline complaint was closed and merged into an investigative case. The OIG has two (2) open hotline 

complaints as of the close of this reporting period, 

including one (1) that was 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 FEC’s 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, as 

amended (FECA), sets forth strict requirements for 

reporting alleged violations of FECA, and FEC regulations direct that such complaints be processed 

through OGC; still, the OIG regularly receives complaints of alleged FECA violations, many of which 

are not statutorily compliant. Reviewing and, where 

appropriate, responding to these reports and allegations when aggregated can entail a significant 

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 has created a category for “hotline inquiries” that do not meet the criteria for hotline complaints. For this reporting period, the OIG received 
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Office of Inspector General Semiannual Report to Congress

approximately six thousand nine hundred and 

seventeen (6,917) hotline inquiries. Approximately 

six thousand nine hundred and ten (6,910) concerned allegations of improprieties with a Wisconsin 

Supreme Court election and were clearly outside the 

jurisdiction of the OIG. Two (2) of the hotline inquiries were referred or redirected to other FEC offices, 

and one (1) was referred or redirected to another 

agency. No further action was taken in four (4) of 

the hotline inquiries.
11

April 1, 2011 - September 30, 2011

OIG investigations

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

laws and regulations. The subject of an OIG investigation can be any FEC employee, an FEC contractor, consultant, or a person or entity involved in 

alleged wrongdoing affecting FEC programs and 

operations. 

The OIG conducts a detailed examination or inquiry 

into issues deemed appropriate for investigation. At 

the conclusion of an OIG investigation, the OIG prepares a report that sets forth the allegations and an 

objective description of the facts developed during 

the investigation. 

As of the end of the semiannual reporting period, there is one (1) open investigation, which was 

opened during the reporting period, and one (1) 

investigation was closed. The closed investigation 

involved allegations that an employee collected transit subsidy benefits to which the employee was not 

entitled through a SmarTrip account, and improperly 

used transit subsidy benefits to pay for parking, between September 2007 and July 2009. The investigation substantiated the allegation, and a Report 

of Investigation was issued to the Commission. The 

employee received an oral admonishment, agreed 

to repay $805 in improperly collected and used transit subsidy benefits, and agreed to monitoring of the 

employee’s SmarTrip account.
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Office of Inspector General Semiannual Report to Congress

Additional OIG Activity

Besides conducting audits, inspections, and investigations, the OIG performs, and is involved in an array of additional projects and activities. As required 

by the Inspector General Act of 1978, as amended, all legislation compiled by the Commission’s 

Congressional Affairs office is reviewed by the 

Inspector General. 

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 is an example of the OIG’s additional activity: 

•	 During this reporting period, the OIG responded 

to Representative Darrell Issa’s annual correspondence regarding outstanding recommendations. The OIG compiled a spreadsheet listing 

all outstanding recommendations and forwarded the results to Representative Issa’s office. 

Overall, the FEC has agreed with the majority of recommendations contained in our audit 

reports. There is still some work to be done 

in ensuring the recommendations are implemented in a timely manner, but we are working 

with management to assist them in establishing an effective procedure that sets time frames 

for completion and keeps the Commission informed of their progress. The OIG’s report to 

Representative Issa included 171 open recommendations that have yet to be implemented by 

the FEC. The IG’s report noted that 53 of the 

171 recommendations are less than six months 

old.
13

April 1, 2011 - September 30, 2011

Council of the Inspectors General on 

Integrity and Efficiency (cigie) Activity

The Inspector General continues to be very 

involved in CIGIE. She is a member of the 

Executive Council, which is composed of the 

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

all Committee Chairmen, and one member appointed by the Chair. The Executive Council provides guidance on CIGIE initiated projects, the operating plans for each fiscal year, and the standing 

up of the CIGIE and the training academies. The 

Council meets monthly to discuss issues that will 

affect CIGIE.

The Inspector General also Co-Chairs the 

Inspector General Candidate Recommendation 

Panel with the Justice Department Inspector 

General. This panel is charged with making recommendations of qualified candidates to the White 

House and heads of various federal agencies to be 

considered for vacant Inspector General positions.

The Inspector General is also Vice Chair of the 

Professional Development Committee. This committee is charged with ensuring there is strong, relevant training for the Inspector General community 

and provides advice and guidance to the Executive 

Director of the CIGIE Training Institute.
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Office of Inspector General Semiannual Report to Congress

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, 2011 through September 30, 2011. 

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

1,906 45 1,834 27
15

April 1, 2011 - September 30, 2011

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, 2011 – September 30, 2011:

MEETINGS:

Host / Sponsor Topic / Subject

Council of Inspectors General on

Integrity and Efficiency 

Monthly Meetings

Executive Council Meetings

Professional Development Committee Meetings

IG Recommendations Panel

Council of Counsels to the Inspectors General Monthly Meetings

Assistant Inspector General for Investigations Quarterly Meetings

Association of Government Accountants Meet the Financial Management Policy Makers 

(breakfast series with Congressman Issa

Interagency Ethics Council Meeting IEC Meeting

Financial Statement Audit Network Monthly Meetings

Federal Election Commission

Weekly Director’s Meetings

Finance Committee Meetings

Administrative Liaison Group Meetings

FEC / Office of Inspector General Bi-weekly Staff Meetings

Brainstorming Session / Planning Day
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Office of Inspector General Semiannual Report to Congress

TRAINING/CONFERENCES:

Host / Sponsor Topic / Subject

Association of Government Accountants 2011 Annual Professional Development Conference

National Science Foundation Federal Audit Executive Council (FAEC) Conference

Office of Government Ethics 18th National Government Ethics Conference

American University New Leadership Development Program (session 1 of 2)

Council of Inspectors General on Integrity and 

Efficiency

Introduction to Federal Auditing

IG Authorities Training

New IG Attorney Training

Annual GAO / Inspectors General Conference

Association of Certified Fraud Examiners (ACFE) ACFE Annual Conference

Management Concepts Performance Auditing Training

Business Controls, Inc. MySafeWorkplace Hotline Service Provider Training

USDA Graduate School Introduction to Federal Budgeting

Managing Multiple Priorities

Career Track Management Skills for Support Staff

Federal Election Commission 

Privacy Training

No Fear Act Training

Computer Security Awareness Training

FEC System Access Refresher Training

Invoice Tracking System Training

WebTA Timekeepers Conference

Directive 32 – Review of 2011 Anti- Harassment Policy

GovDelivery Training
17

April 1, 2011 - September 30, 2011

Reporting Requirements

 IG ACT DESCRIPTION PAGE

Section 4(a)(2) Review of Legislation 12

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) 20

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) 18

Section 5(a)(9) Recommendations that Funds be put to Better Use (Table II) 19

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

Section 5(a)(14) Peer Review Results or Last Peer Review Date 21

Section 5(a)(15) Peer Review Performed on Another OIG 21

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

General Act Amendments of 1988 are listed below:
18

Office of Inspector General Semiannual Report to Congress

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
19

April 1, 2011 - September 30, 2011

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
20

Office of Inspector General Semiannual Report to Congress

TABLE III

SUMMARY OF AUDIT REPORTS WITH CORRECTIVE ACTIONS OUTSTANDING FOR 

MORE THAN SIX MONTHS

Recommendations

Report Title Report 

Number

Issue Date Number Closed Open

Audit Follow-up Review of the 

FEC’s Employee Transit Benefit 

Program

OIG-08-03 07/09 51 0 51

Audit of the Commission’s 

Property Management Controls 

OIG-09-02 03/10 36 0 36

Federal Election Commission1

2010 Financial Statement Audit

OIG-10-01 11/10 11 0 11

2010 Follow-up Audit2 of 

Procurement and Contract 

Management

OIG-10-02 06/11 29 0 29

2010 Follow-up Audit3 of 

Privacy and Data Protection

OIG-10-03 03/11 45 0 45

1 Follow-up on the 11 open recommendations are currently in progress as part of the FEC’s 2011 Financial Statement Audit.

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 Identifiable 

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.
21

April 1, 2011 - September 30, 2011

APPENDIX A: PEER REVIEW RESULTS

In accordance with the Dodd-Frank Wall Street 

Reform and Consumer Protection Act of 2010 

(Section 989C of P.L. 111-203), which amended 

Section 5 of the Inspector General Act of 1978, 

OIGs are required to include in their semiannual reports (SAR) to Congress the results of peer reviews 

of their offices, as well as outstanding and not fully 

implemented recommendations from peer reviews 

the OIG received from another OIG, and outstanding and not fully implemented recommendations the 

OIG made in any peer review it performed for another OIG.

An audit peer review was conducted on the FEC 

OIG by the Federal Maritime Commission (FMC) 

OIG during this reporting period. A final system review report was issued to the FEC OIG on May 5, 

2011 and we received a pass rating and there were 

no weaknesses identified in the system review report that would result in recommendations for improvement. The peer review comment letter, that accompanied the system review report, did include five 

findings and recommendations. However, none of 

the findings were considered to be of sufficient significance to affect the peer review opinion expressed 

in the system review report. The FEC OIG has 

implemented the five recommendations contained 

in the comment letter by addressing the weaknesses in new policies and procedures contained in the 

OIG Audit Manual that was updated and finalized 

on March 31, 2011 (http://www.fec.gov/fecig/documents/PeerReview2010.pdf).

The FEC OIG completed an audit peer review 

of the Commodity Futures Trading Commission 

(CFTC) OIG on March 31, 2011. Our peer review 

was conducted in accordance with Government 

Auditing Standards and guidelines established by 

the Council of the Inspectors General on Integrity 

and Efficiency (CIGIE). During our review, we interviewed CFTC OIG personnel and obtained an 

understanding of the nature of the CFTC OIG audit 

organization, and the design of the CFTC OIG’s system of quality control sufficient to assess the risks 

implicit in its audit function. Based on our assessments, we selected engagements and administrative files to test for conformity with professional 

standards and compliance with the CFTC OIG’s 

system of quality control.

The results of our peer review of the CFTC OIG 

resulted in recommendations for improvement. 

Consistent with the requirements of Section 989C 

of P.L. 111-203, the FEC OIG is required to include 

in our semiannual report a list of any outstanding 

and not fully implemented recommendations by the 

CFTC OIG. The FEC OIG contacted the CFTC IG 

in October 2011 to obtain the status of the recommendations contained in the system review report 

(peer review report). According to the CFTC IG, 

all recommendations contained in the peer review report of the CFTC OIG were implemented 

by September 30, 2011. In accordance with the 

CIGIE’s peer review guidelines, it is not the responsibility of the FEC OIG to verify whether the recommendations have been implemented by the CFTC 

OIG, and as such, the FEC OIG has not conducted 

any follow-up review of the CFTC OIG to verify implementation of corrective actions. (http://www.cftc.

gov/ucm/groups/public/@aboutcftc/documents/file/

oig_peerreview.pdf)
Office of Inspector General Semiannual Report to Congress

22

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April 1, 2011 - September 30, 2011

23

APPENDIX B :

Federal Election Commission 

Office of Inspector General 

Fiscal Year 2012 

Work Plan

Lynne A. McFarland 

Inspector General 
Office of Inspector General Semiannual Report to Congress

24

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April 1, 2011 - September 30, 2011

25

 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 2012 Work Plan-------------------------------------------------------------------- 6 

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

 

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

 Special Projects------------------------------------------------------------------ 10 
Office of Inspector General Semiannual Report to Congress

26

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April 1, 2011 - September 30, 2011

27

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) 2012 Annual Work Plan. This work plan includes a 

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

FY. This plan also sets forth the OIG’s formal strategy for identifying priority 

issues and managing its workload and resources for FY 2012. 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 2011 in the audit 

and investigative programs, as well as special projects, notwithstanding the 

resignation of the OIG’s Senior Auditor in March 2011. Among the audits 

completed in FY 2011 were the FY 2010 annual financial statement audit, and two 

follow-up audits of procurement and privacy practices. These three audits yielded a 

combined total of 85 audit recommendations to improve FEC programs and 

operations. An audit peer review of my office was also conducted in FY 2011 and 

resulted in a pass rating, and my office also conducted a peer review of another 

federal OIG. Lastly, the OIG finalized a new audit manual in FY 2011. 

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

program accomplished all of the work planned for 2011, to include responding to 

hotline complaints, OIG briefings to all FEC staff and the implementation of a new 

hotline service, among other projects. 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 2012, the OIG is fully staffed with six professional staff members, 

and therefore I anticipate the OIG will successfully complete the FY 2012 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 

1

1

 Federal Election Commission, Fiscal Year 2012 Congressional Budget Justification (Washington, DC, February 

14, 2011), 3. 
Office of Inspector General Semiannual Report to Congress

28

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

planning ensures that audit and investigative resources are used effectively and 

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

audit and investigative support and service to our stakeholders. 

Lynne A. McFarland 

Inspector General 

Federal Election Commission 

October 3, 2011

2
April 1, 2011 - September 30, 2011

29

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 Cynthia L. Bauerly; Vice-Chair Caroline C. 

Hunter; Matthew S. Petersen; Ellen L. Weintraub; 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 2012 was 

$ 1,062,237, 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. 
Office of Inspector General Semiannual Report to Congress

30

Exhibit 1: FEC - OIG Organizational Chart

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

Staff Auditor 

J. Cameron Thurber

Counsel to the Inspector 

General/Chief Investigator

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 

OIG-wide 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. 

4
April 1, 2011 - September 30, 2011

31

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 that we have adopted is built around the OIG staff 

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

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

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

priorities, as well as any changes in OIG resources. In the summer of 2011, the 

OIG conducted our fourth annual all-day brainstorming session. Similar to prior 

years, the ideas and suggestions generated from the 2011 brainstorming session 

were separated into categories to include audits, inspections, investigative program, 

and special projects, and then ranked (i.e., high, medium and low) according to 

priority. 

In anticipation of the OIG annual brainstorming sessions, the OIG sends an 

e-mail to all FEC staff seeking input in formulating the OIG’s work plans. 

Historically, the OIG receives useful audit suggestions from FEC staff which are 

then considered during the annual planning process. 

The OIG planning process is designed to yield work assignments that will 

identify opportunities for economy, efficiency and effectiveness in FEC programs 

and operations; and detect and prevent fraud, waste, abuse and mismanagement. 

The priority for conducting work assignments is based on (1) mandatory legislative 

requirements; (2) emphasis by the President, Congress, and the Commission; (3) a 

program’s susceptibility to fraud, manipulation, or other irregularities; (4) dollar 

magnitude or resources involved in the proposed area; (5) management needs 

identified through consultation with primary organization heads; (6) newness, 

changed conditions, or sensitivity of an organization; (7) the extent of outstanding 

issues resulting from prior audit coverage or review by the OIG or other oversight 

body; and (8) the adequacy of internal control systems in place for the program or 

other factors. 
Office of Inspector General Semiannual Report to Congress

32

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 2012 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 2012, the following audit related assignments are planned:

1. Audit of the Federal Election Commission’s 2011 and 2012 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 2011 – November 2011; 

May 2012 – November 2012. 
April 1, 2011 - September 30, 2011

33

7

2. Quality Control Assessment of the FEC Audit Division. 

The OIG will conduct a quality control assessment audit of the FEC Audit 

Division. The primary objectives of the audit will be to ensure that the FEC 

Audit Division’s quality control system is suitably designed and consistently 

complied with to the extent necessary to reasonably ensure compliance with 

audit standards and policies. For example, the audit will include a review of 

the Audit Division’s audit workpapers and reports to ensure that auditors 

consistently adhere to applicable auditing standards and policies; audit 

conclusions are properly supported with sufficient and competent evidence; 

auditors are properly trained; supervisory review of audits is timely 

throughout the conduct of audits; and other requirements that contribute to 

quality audits. Consistent with professional auditing standards and best 

practices, external quality control assessments should be conducted on a 

regular schedule, generally every three to five years, to ensure effective and 

efficient audit practices and adherence to applicable audit standards by the 

audit unit. 

The FEC Audit Division is responsible for conducting audits of political 

committees, and presidential campaigns and convention committees that 

accept public funds. In addition, the Audit Division is responsible for 

evaluating the Presidential primary candidates’ applications for matching 

funds and determining the amount of contributions that may be matched 

with federal funds. 

Planned period of audit: November 2011 – February 2012. 

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

The OIG is planning to conduct a performance audit of the FEC’s Human 

Resources (HR) Office during fiscal year (FY) 2012. The HR Office is a critical 

component of the agency and is responsible for several important functions, to 

include recruitment and retention of qualified staff; employee-employer 

relations; administration of employee benefits; maintenance and processing of 

personnel records; training; among other responsibilities. The Office of 

Personnel Management (OPM) conducted a Human Capital Management 

Evaluation of the FEC in 2009 and reported numerous weaknesses and 

deficiencies. The purpose of the OIG’s audit will be to follow-up on the 

weaknesses identified by OPM to ensure appropriate corrective action has been 

taken by the FEC; and also focus on additional high-risk areas not covered by 

the 2009 OPM evaluation. 

Planned period of audit: March – June 2012. 
Office of Inspector General Semiannual Report to Congress

34

8

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 2012, there were 130 outstanding audit recommendations representing 

four OIG audits. On-going audit follow-up during FY 2012 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 2012. 

5. Limited Scope Inspections. 

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

of FEC programs during FY 2012. 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. Two inspections started in FY 2011 on 

building security and internal controls over Kastle Keys will be completed in 

early FY 2012. In addition to these two inspections, an additional four 

inspections are planned for FY 2012. 

Planned period of inspections: FY 2012. 

6. Additional Work Assignments. 

Additional work assignments may be undertaken during FY 2012 based on 

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

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

 
April 1, 2011 - September 30, 2011

35

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 2012, 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 is 

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

initiatives to prevent fraud, waste, abuse and misconduct. 

3. Investigative Peer Reviews. 

The OIG will conduct an investigative peer review of another federal OIG in 

FY 2012. 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 FEC OIG peer review team will analyze existing policies and 

procedures, conduct interviews with selected OIG management officials and 

the investigative staff, and sample closed investigative files and other 

administrative records, as warranted. 

Planned period of peer review: January – March 2012.

In addition to a peer review of another OIG, the FEC OIG will participate in 

the Council of Inspectors General on Integrity and Efficiency voluntary peer 

review program for smaller OIGs, and the FEC OIG will be peer reviewed 

during FY 2012. 

Planned period of peer review: April – June 2012. 
Office of Inspector General Semiannual Report to Congress

36

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 will continue our 

outreach program and conduct fraud briefings. The fraud briefings will 

provide information on the potential for fraud in FEC programs, such as 

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

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

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

cases. The briefings will also discuss the OIG’s new hotline service launched 

in late fiscal year 2011. 

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 2012. 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 2012, the following are examples of the special projects and activities

planned by the OIG:

1. Participate and Attend Professional Working Group and Other 

Meetings. 

The Inspector General or OIG staff will regularly attend the following 

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

professional working group meetings: CIGIE; Executive Council of CIGIE; 

CIGIE Professional Development Committee; IG Candidate 

Recommendations Panel Committee; IG Council of Counsels; Assistant 

Inspector General for Investigations; Federal Audit Executive Council; and 

Financial Statement Audit Network Group. 
April 1, 2011 - September 30, 2011

37

11

In addition to CIGIE professional working group meetings, the Inspector 

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

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

maintain and improve their knowledge, skills and abilities. 
Office of Inspector General Semiannual Report to Congress

38

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