Semiannual Report to Congress

April 1, 2012 – September 30, 2012

November 2012

Federal Election Commission - Office of Inspector General

999 E Street, N.W. Suite 940, Washington, D.C. 20463
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April 1, 2012 - September 30, 2012

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

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

MANAGEMENT REPORT ON 

INSPECTOR GENERAL ISSUED REPORTS 

WITH QUESTIONED COSTS 

FOR THE SIX-MONTH PERIOD ENDING SEPTEMBER 30, 2012 

 Number of Questioned Unsupported 

 Reports Costs Costs

A. Reports for which no management decision 

 has been made by commencement of the 

 reporting period 0 0 [0] 

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

Subtotals (A + B) 0 0 [0] 

C. Reports for which a management decision 

 was made during the reporting period 0 0 [0] 

 (i) Dollar value of disallowed costs 0 0 [0] 

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

D. Reports for which no management decision has 

 been made by the end of the reporting period 0 0 [0] 

E. Reports for which no management decision 

 was made within six months of issuance 0 0 [0] 
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April 1, 2012 - September 30, 2012

MANAGEMENT REPORT ON 

INSPECTOR GENERAL ISSUED REPORTS WITH 

RECOMMENDATIONS TO PUT FUNDS TO BETTER USE 

FOR THE SIX-MONTH PERIOD ENDING SEPTEMBER 30, 2012 

 Number of Funds to be Put 

 Reports To Better Use

A. Reports for which no management decision 

 has been made by the commencement 

 of the reporting period 0 0 

B. Reports issued during the reporting period 0 0 

C. Reports for which a management decision 

 was made during the reporting period 0 0 

 (i) Dollar value of recommendations that were 

 agreed to by management 0 0 

 - Based on proposed management action 0 0 

 - Based on proposed legislative action 0 0 

 (ii) Dollar value of recommendations that were 

 not agreed to by management 0 0 

D. Reports for which no management decision 

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

E. Reports for which no management decision 

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

This Page Intentionally Left Blank
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April 1, 2012 - September 30, 2012

FEDERAL ELECTION COMMISSION 

 WASHINGTON, D.C. 20463 

 Office of Inspector General

A Message from the Inspector General 

In the beginning of FY 2012, the OIG made a decision to place an emphasis on following 

up on previous recommendations made to management in audit reports and inspections. 

To do so we made revisions to our Audit Follow-up Process, to include conducting 

quarterly follow-up meetings with management regarding outstanding OIG 

recommendations, and providing a semiannual report to the Commission detailing the 

audit follow-up work conducted by the OIG and the status of outstanding 

recommendations. 

The OIG released the Review of Outstanding Audit Recommendations (OIG-12-04) report 

in June 2012. The review conducted by the OIG included a detailed review of 

outstanding audit recommendations for four (4) OIG audits to determine whether FEC 

management had implemented outstanding audit recommendations. The review also 

assessed the status of outstanding recommendations from several other inspections and 

reviews of agency programs. While we found management had made some progress, 

there are still a great number of recommendations that have not been implemented. The 

OIG also provided suggestions to management on how to improve the FEC’s audit 

follow-up process.

Our plan is to continue placing an emphasis on monitoring open recommendations and 

we have included this task in our annual work plan for fiscal year 2013. We feel this will 

aid management in placing the appropriate focus on continuing to resolve outstanding 

recommendations. 

In May 2012, OIG implemented a new formal risk assessment process to aid in 

developing the annual OIG work plans. The purpose of the risk assessment is to better 

align OIG resources to areas that will provide the most value to the FEC. A risk 
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Office of Inspector General Semiannual Report to Congress

assessment is "a process to identify, assess, respond to, and report on opportunities and 

threats that affect the achievement of objectives.” The new risk assessment process 

entails a comprehensive review of all the risk that could impact the FEC and was 

modeled after the COSO (The Committee of Sponsoring Organizations of the Treadway 

Commission) framework. The risk assessment was performed in three (3) phases, which 

are listed below: 

 Phase 1 – Identifying the Audit Universe 

Phase 2 – Performing the Risk Assessment 

Phase 3 – Developing the Annual Audit Plan 

I feel the OIG has made some major adjustments in how we conduct our work and this 

will enable us to operate in a more efficient and effective manner. I would like to 

congratulate the staff for making the necessary adjustments to ensure that the OIG and its 

work products continue to improve and provide value to the Federal Election 

Commission. 

Lynne A. McFarland 

Inspector General 

Federal Election Commission 

October 23, 2012

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April 1, 2012 - September 30, 2012

Executive Summary 1

The Federal Election Commission 3

Office of Inspector General 4

OIG Audit Activity 5

OIG Audit Follow-up Activity 8

OIG Inspections and Special Projects 9

OIG Hotline Information 11

OIG Investigations 13

Additional OIG Activity 14

Council of the Inspectors General on Integrity and Efficiency (CIGIE) Activity 16

OIG Contacts 17

List of Training, Meetings and Conferences Attended by OIG Staff 18

Reporting Requirements 21

Table I – Questioned Cost 22

Table II – Funds Put To Better Use 23

Table III – Summary Of Audit And Inspection Reports With 24

Corrective Actions Outstanding For More Than Six Months

Appendix A: OIG Fiscal Year 2013 Work Plan 25

Table of Contents
Office of Inspector General Semiannual Report to Congress

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April 1, 2012 - September 30, 2012

Executive Summary

detailed review of outstanding audit recommendations for four (4) OIG audits to determine whether 

FEC management had implemented outstanding audit recommendations. The review also assessed the 

status of outstanding recommendations from several 

other inspections and reviews of agency programs. 

For detailed information pertaining to the Review of 

Outstanding Audit Recommendations, see the section entitled OIG Audit Follow-up Activity (starting 

on page 8).

The OIG completed and released in August 

2012 the 2011 Inspection of the Federal Election 

Commission’s (FEC) Contract Security Guard 

Program (OIG-11-03) report. The inspection resulted 

in one (1) finding and recommendation, and nine (9) 

observations and suggestions to improve the security guard operations. The recommendation and one 

of the suggestions were directed to both FEC management and the Federal Protective Service (FPS), 

four (4) suggestions were directed primarily to FEC 

management, and four (4) suggestions were directed 

primarily to the FPS.

A special project report entitled New Employee 

Orientation (NEO) Survey (OIG-12-08) was also 

completed and released during this reporting period. 

The purpose of the survey was to evaluate the effectiveness of the FEC's NEO program and suggest 

improvements to enhance the program. The 43 survey responses received by the OIG from employees 

hired approximately within the last three years were 

generally positive, nevertheless there is opportunity 

for improvement and the OIG made several suggestions to the FEC to improve the NEO program.

For detailed information pertaining to the 2011 inspection of the security guard program and the survey of the new employee orientation, see the section 

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 economy, efficiency, and effectiveness of 

agency resources and programs, and to prevent 

fraud, waste, abuse, and mismanagement. The IG 

Act also requires the Inspector General to keep 

the Commission and Congress fully and currently 

informed about problems and deficiencies in the 

Commission’s operations and the need for corrective 

action.

The executive summary highlights the most significant activities of the Federal Election Commission 

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

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

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

OIG staff make the major accomplishments of the 

OIG possible.

In September 2012, the OIG completed a Quality 

Assessment Review of the FEC Audit Division (OIG12-01). The primary objective of the audit was 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 professional audit standards 

(best practices) and policies. The audit resulted in 

five (5) findings and eleven (11) recommendations 

to improve the quality control system of the FEC 

Audit Division. For detailed information pertaining 

to the Quality Assessment Review of the FEC Audit 

Division, see the section entitled OIG Audit Activity

(starting on page 5).

The OIG released the Review of Outstanding Audit 

Recommendations (OIG-12-04) report in June 

2012. The review conducted by the OIG included a 
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Office of Inspector General Semiannual Report to Congress

entitled OIG Inspections and Special Projects

(starting on page 9).

In addition to the aforementioned completed projects, the Audit of the FEC’s Human Resources (HR) 

Office commenced during this reporting period. The 

HR Office is a critical component of the agency and 

is responsible for several important functions, including recruitment and retention of qualified FEC 

staff; employee-employer relations; administration 

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

responsibilities. The primary objectives of the audit 

are to assess the HR customer service level and the 

efficient and effective use of automated processes 

for human resource functions. As part of the customer service assessment, the OIG will conduct an 

agency-wide survey of FEC staff to seek feedback 

on their satisfaction level of service provided by the 

FEC HR Office.

The OIG continued work on the Audit of the FEC’s 

Fiscal Year 2012 Financial Statements. The OIG exercised another option year earlier in the year with 

Leon Snead & Co. (LSC) to conduct the FEC’s 2012 

annual financial statement audit. The entrance conference with FEC management, LSC and the OIG 

was held on May 8, 2012. As part of the OIG’s monitoring of the audit, the OIG approved LSC’s planning 

documents and audit program at the beginning of 

the audit. During the audit, biweekly status meetings were held with the auditors, FEC management 

and the OIG to discuss audit issues and provide an 

update of the audit process. LSC completed their 

interim testing phase in September 2012 and identified nine (9) preliminary audit issues related to information technology security. These 9 issues were 

reported to management as notice of findings and 

recommendations, with a request for management 

to respond to the accuracy of the issues. Final yearend audit testing is anticipated to begin October 9, 

2012.

For detailed information pertaining to the Audit of 

the Human Resources Office (see page 6); and 

the Audit of the FEC’s Fiscal Year 2012 Financial 

Statements (see page 6).

The OIG procured contract services to conduct an 

inspection of the FEC’s Disaster Recovery Plan and 

Continuity of Operations Plans. On September 26, 

2012, the contract to conduct the inspection was 

awarded to Brown & Company. The planning phase 

of the inspection has started, and the preliminary 

meetings with the OIG and management are scheduled for early October 2012 (see page 9).

The OIG recently began an inspection of the FEC’s 

Office of Equal Opportunity Employment (OEEO). 

The initial records have been obtained from the 

OEEO and are under review by the OIG in order to 

plan the inspection. The OEEO inspection is expected to be completed and the report published during 

the next reporting period (see page 10).

Two (2) new hotline complaints were opened during this reporting period; one (1) of the two (2) was 

closed and the matter re-opened as an investigative 

file. The OIG has three (3) open hotline complaints 

as of the close of this reporting period, including two 

(2) that were opened prior to the beginning of this 

reporting period. For this reporting period, the OIG 

received four hundred and nineteen (419) hotline 

inquiries; the vast majority of these inquiries were 

related to one matter, which is 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. 

One (1) concerned a follow-up issue to a previous 

OIG audit. No further action was taken against the 

remaining four hundred and fourteen (415) hotline 

inquiries (see page 11). In addition, one (1) investigation was opened during this semiannual reporting 

period and remains open (see page 13).

Finally, in May 2012, the OIG implemented a formal 

risk assessment process to aid in developing the 

OIG’s annual work plans. The purpose of the risk 

assessment is to better align OIG resources to areas 

that will provide the most value to the FEC based 

on risk. A risk assessment is "a process to identify, 

assess, respond to, and report on opportunities and 

threats that affect the achievement of objectives.” 

The new risk assessment process enabled the OIG 

to finalize the FY 2013 work plan detailing the audit, 

inspection and investigative areas the OIG will focus 

resources on during the year (see page 25).
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April 1, 2012 - September 30, 2012

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 – Caroline 

C. Hunter, Chair; Ellen L. Weintraub, Vice Chair; 

and Commissioners Cynthia L. Bauerly; Donald 

F. McGahn II; Matthew S. Petersen; and Steven T. 

Walther.
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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.
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April 1, 2012 - September 30, 2012

Quality Assessment Review of the FEC Audit 

Division

Assignment Number: OIG-12-01

Status: Released September 2012

http://www.fec.gov/fecig/documents/Final-QualityAssessme

ntAuditoftheFECAuditDivision-OIG-12-01.pdf

The OIG completed a quality control assessment 

audit of the FEC Audit Division during this reporting period. The FEC Audit Division (AD) is responsible for conducting audits of political committees, 

and presidential campaigns and convention committees that accept public funds. In addition, the AD 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.

The primary objective of the OIG audit was to ensure that the FEC AD’s quality control system is suitably designed and consistently complied with, to the 

extent necessary, to reasonably ensure compliance 

with professional audit standards (best practices) 

and policies. This audit was intended to model a 

peer review, a review commonly performed on both 

federal and non-federal audit departments. When 

assessing AD’s system of quality control, we considered best practices based on applicable standards 

included in the Generally Accepted Government 

Auditing Standards (GAGAS) and Generally 

Accepted Auditing Standards (GAAS).

During our audit, we interviewed AD auditors to 

obtain an understanding of the nature of the AD organization and the audit process used to conduct 

FEC audits. We also selected a sample of audits 

completed during the established audit period and 

examined the related audit workpapers and reports 

to ensure: auditors consistently adhere to applicable 

OIG Audit Activity

auditing standards (best practices) and policies; audit conclusions are properly supported with sufficient 

and competent evidence; supervisory review of audits is timely throughout the conduct of audits; and 

other requirements are met that contribute to quality 

audits. In addition, to ensure conformity with auditing best practices related to continuing professional 

education (CPE), we performed testing to determine 

if the audit staff regularly obtains adequate training 

to ensure audits are conducted in accordance with 

professional auditing standards (best practices).

Based on our assessment of the Audit Division’s 

quality control policies and procedures, the OIG concluded the AD’s system of quality control needs to be 

enhanced to provide reasonable assurance of performing and reporting in conformity with applicable 

government auditing best practices. Although AD’s 

quality control system needs to be improved and 

formally documented, the OIG found no indications 

that the audit testing actually performed by the AD 

was insufficient to support the findings and conclusions included in the audit reports sampled. In fact, 

the OIG concluded the AD has a very vigorous audit 

planning (pre-audit) process that enables testing to 

concentrate on the most significant (material) and 

high-risk audit areas.

Further, the Audit Division needs to enhance and formalize its existing quality control process to ensure 

adequate evidence is consistently maintained to support audit work performed, and that workpaper review procedures by someone other than the person 

who performed the work is properly documented. 

This documentation ensures that audits consistently 

comply with professional audit standards and internal policies and procedures. The OIG concluded the 

quality of the AD’s audits is acceptable and generally 

consistent with professional auditing standards. OIG 

noted in the audit report that the Audit Division is 
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Office of Inspector General Semiannual Report to Congress

working on enhancing and formalizing a quality control framework which will be applied to all phases of 

the audit process.

The audit resulted in five (5) findings and eleven 

(11) recommendations to improve the quality control process of the FEC Audit Division. Management 

agreed with five (5) recommendations, partially 

agreed with three (3) and disagreed with three (3) 

recommendations.

Audit of the Federal Election Commission’s 

Office of Human Resources

Assignment Number: OIG-12-05

Status: In Progress

The Audit of the FEC’s Office of Human Resources 

(OHR) commenced during this reporting period. The 

OHR is a critical component of the agency and is 

responsible for several important functions including 

recruitment and retention of qualified staff; employee-employer relations; administration of employee 

benefits; maintenance and processing of personnel 

records; and training, among other responsibilities.

The primary objectives of the audit are to assess 

the OHR customer service level and the efficient 

and effective use of automated processes for human 

resource functions. The OIG held an entrance conference on July 5, 2012 to provide management with 

an understanding of the purpose of the audit and to 

discuss the preliminary scope for the HR audit. As 

part of the customer service assessment, the audit includes an agency-wide survey of FEC staff to 

seek feedback on their satisfaction level of service 

provided by the FEC HR Office. The OIG developed the OHR customer service survey which was 

reviewed by OHR management for comments and 

suggestions. The OIG launched the survey agencywide on September 14, 2012 and the results of the 

survey will be shared with OHR and also utilized to 

help the OIG determine which areas to concentrate 

audit testing. The HR audit is scheduled to be completed during the next reporting period.

Audit of the FEC’s Fiscal Year 2012 Financial 

Statements

Assignment Number: OIG-12-03

Status: In Progress

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

conduct the Federal Election Commission’s (FEC) 

annual financial statement audit. The entrance conference was held on May 8, 2012 and audit fieldwork 

commenced on May 18, 2012. The OIG approved 

LSC’s planning documents and audit program for 

the FY 2012 financial statement audit. OIG approval 

of the planning documents and audit program consisted of LSC briefing the OIG on any changes to 

the audit plan from the prior year and a discussion 

on any changes to the audit approach due to new 

accounting and auditing requirements.

During the audit’s review and evaluation phase, LSC 

followed up with management regarding the status 

of prior year findings and recommendations. LSC’s 

review of prior year findings concluded that five (5) 

of the twenty (20) prior audit recommendations were 

properly implemented. Further, LSC reviewed FEC’s 

compliance with applicable laws and regulations 

and the existence and effectiveness of internal controls. During the audit, biweekly status meetings are 

held with the auditors, OIG and FEC management 

to discuss audit issues and provide an update of the 

audit process.
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April 1, 2012 - September 30, 2012

The OIG provided assistance to LSC in gathering 

data regarding current active employees and contractors, as well as researching guidance to verify 

whether Office of Management and Budget M-09-

32: Trusted Internet Connections is applicable to 

the FEC. In addition, the auditors met with the Chair 

and Vice-Chair of the Commission to fulfill the requirements of SAS 114: Communication with Those 

Charged with Governance. The auditors provided 

the Chair and Vice-Chair with an explanation of the 

auditors’ role and responsibilities, an update regarding the progress of the audit, and the audit issues 

identified and provided to management.

LSC completed their interim audit testing phase in 

September 2012, and the OIG reviewed the notice 

of findings and recommendations (NFRs) prior to 

distribution to management. The review and evaluation phase, and interim testing phase, identified nine 

(9) IT security audit issues that were provided to 

management as NFRs. Final audit testing is anticipated to begin October 9, 2012 and the audit completed before November 15, 2012.
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Office of Inspector General Semiannual Report to Congress

Review of Outstanding Audit 

Recommendations

Assignment Number: OIG-12-04

Status: Released June 2012

In the beginning of FY 2012, the OIG made revisions to our Audit Follow-up Process, to include 

conducting quarterly follow-up meetings with management regarding outstanding OIG recommendations, and providing a semiannual report to the 

Commission detailing the audit follow-up work conducted by the OIG and the status of outstanding 

recommendations.

The OIG released the Review of Outstanding Audit 

Recommendations report in June 2012. The report covered four (4) audits with outstanding audit 

recommendations:

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

Transit Benefit Program;

•	 Audit of the Commission’s Property 

Management Controls;

•	 Follow-up Audit of Privacy and Data Protection; 

and

•	 Follow-up Audit of Procurement and Contract 

Management.

The review also assessed the status of outstanding recommendations from several other inspections and reviews of agency programs. The OIG also 

provided suggestions to management on how to improve the FEC’s audit follow-up process.

Based on follow-up work performed since the last 

semi-annual report in March 2012, OIG was able to 

close 23 additional recommendations and the total 

cumulative outstanding recommendations is one 

hundred forty three (143). See Table III for a breakdown of outstanding recommendations.

OIG Audit Follow-up Activity

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

ReviewofOutstandingAuditRecommendationsJune2012_000.pdf
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April 1, 2012 - September 30, 2012

2011 Security Inspection

Assignment Number: OIG-11-03

Status: Released September 2012

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

The inspection of the FEC’s Contract Security 

Guard Program was completed, and the report issued and made publicly available. The purpose of 

this inspection was two-fold. The first purpose was 

to review the security guard contract, policies and 

procedures, standing orders, and guard facilities to 

clarify responsibilities and authorities. This goal was 

informational and intended to provide FEC management with an understanding of the responsibilities 

and authorities of the parties to and beneficiaries of 

the contract. The second purpose was to determine 

compliance with selected contract provisions, policies and procedures.

The inspection resulted in one (1) finding and recommendation, and nine (9) observations and suggestions. The recommendation and one (1) suggestion were directed to both FEC management and the 

Federal Protective Service (FPS), four (4) suggestions were directed primarily to FEC management, 

and four (4) suggestions were directed primarily to 

the FPS.

The inspection did not entail a technical review to 

determine whether the contract, policies and procedures are adequate, appropriate and meet federal, 

legal and industry standards. Further, the inspection 

did not include a comprehensive review of the FEC 

building’s physical security, but instead was limited 

to those aspects of building security as they pertained to the goals and objectives of the inspection. 

Future inspections may be conducted to address 

these areas.

Inspection of the FEC’s Disaster Recovery Plan 

and Continuity of Operations Plan

Assignment Number: OIG-12-06

Status: In Progress

The Office of Inspector General procured contract 

services to conduct an inspection of the FEC’s 

Disaster Recovery Plan (DRP) and Continuity of 

Operations Plan (COOP). The OIG formed a technical evaluation panel (TEP) to evaluate the contract proposals, and the panel rated the proposals 

according to the criteria identified in the contract 

statement of work to select the contractor offering the best value. Based on the combined scores 

of the TEP, on September 26, 2012, the contract 

to conduct the inspection was awarded to Brown 

& Company. The planning phase of the inspection started in late September 2012, and preliminary meetings with the OIG and management were 

scheduled for early October 2012.

The objective of the inspection will be to determine if 

the FEC has effectively implemented the FEC’s DRP 

and COOPs. Specifically, the inspection will determine if FEC has: (1) established an adequate project plan for the development, implementation, and 

testing of the DRP/COOPs; (2) assigned adequate 

resources for completion of a mission critical project; 

and (3) conducts continuous monitoring procedures 

for the DRP and COOPs to ensure the plans are reflective of current business processes. Further, the 

overall inspection will determine whether the FEC 

is in compliance with all applicable guidance (best 

practices) related to federal government agencies 

DRP/COOP.

OIG Inspections

and Special Projects
10

Office of Inspector General Semiannual Report to Congress

Office of Equal Employment Opportunity 

Inspection

Assignment Number: OIG-12-07

Status: In Progress

The OIG recently began an inspection of the FEC’s 

Office of Equal Opportunity Employment (OEEO). 

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

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

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

amended, the Notification and Federal Employment 

Anti-Discrimination and Retaliation Act of 2002 (No 

FEAR Act), the Age Discrimination in Employment 

Act of 1967 (ADEA), the Americans with Disabilities 

Act of 1990 (ADA), the Equal Pay Act of 1963, and 

the Rehabilitation Act of 1973. The OEEO’s general 

responsibilities are twofold – 1) to advise and educate employees and managers of their rights and responsibilities under the EEO laws, and 2) to process 

complaints of alleged violations of EEO laws. The 

OEEO is also responsible for recordkeeping and reporting, especially complaint statistics, as required 

by the EEO laws.

The OIG inspection will evaluate the OEEO’s compliance with specific EEO laws and regulations, to 

include the EEO complaint process, among others. 

The initial background information and records were 

obtained from the OEEO and are being reviewed by 

the OIG to properly plan the inspection. The OEEO 

inspection is expected to be completed and the report published during the next reporting period.

Survey of the Federal Election Commission’s 

New Employee Orientation Program

Assignment Number: OIG-12-08

Status: Released September 2012

The New Employee Orientation (NEO) Survey was 

an OIG special project concerning the FEC’s NEO 

program. The OIG surveyed current FEC employees 

who were hired between June 30, 2009 and June 

30, 2012. The purpose of the survey was to evaluate the effectiveness of the FEC's NEO program and 

suggest improvements.

The OIG survey was conducted between July 31 

and August 15, 2012. The survey was sent to sixtyeight (68) employees; forty-three (43) employees 

responded. The responses were generally positive, 

and the OIG made several suggestions to improve 

the NEO program. The NEO Survey report has been 

posted on the OIG website.

http://www.fec.gov/fecig/documents/Final-SurveyoftheFECs

NewEmployeeOrientationProgram-OIG12-08.pdf
11

April 1, 2012 - September 30, 2012

The OIG hotline exists to enable FEC employees, 

FEC contractors, and the public to have direct and 

confidential contact with the OIG. All allegations or 

referrals of fraud, waste, abuse, mismanagement, 

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

been received, a preliminary inquiry is conducted 

to determine whether the hotline complaint will be 

closed with no further action taken, referred to management or another agency, or an investigation will 

be initiated. 

The OIG considers many factors when evaluating 

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

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

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

priorities, commitments, and resources of the OIG. 

Under this policy, hotline complaints are 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; one (1) of the two 

(2) was closed and the matter re-opened as an investigative file. The OIG has three (3) open hotline 

complaints as of the close of this reporting period, 

including two (2) that were opened prior to the beginning of this reporting period. 

The OIG frequently receives reports and allegations, 

which are misdirected complaints that should have 

been routed to the Office of Complaints and Legal 

Administration within the Office of General Counsel 

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

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

Federal Election Campaign Act of 1971, as amended (FECA), sets forth strict requirements for reporting alleged violations of FECA, and FEC regulations 

direct that such complaints be filed directly by the 

complainant and processed through OGC; still, the 

OIG regularly receives complaints of alleged FECA 

violations, many of which are not legally compliant. 

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

alleging FECA violations, as the OIG cannot simply route FECA complaints to OGC. In other cases 

of misdirected complaints, a response is sent to the 

individual referring him or her to the proper office or 

other agency. 

In some limited instances where a misdirected communication does not concern a FECA violation but 

falls under the purview of another FEC component 

or government agency, such as a candidate with a 

question about filing a report with the FEC, the inquiry may be redirected and sent to the appropriate 

office or agency directly from the OIG. Reviewing 

and, where appropriate, responding to these reports 

and allegations when aggregated can entail a 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 

four hundred and nineteen (419) hotline inquiries, 

the vast majority of these inquiries were related to 

 OIG hotline Information
12

Office of Inspector General Semiannual Report to Congress

one matter, which is 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. One (1) concerned a follow-up issue to a previous OIG audit. No 

further action was taken in four hundred and fourteen (415) of the hotline inquiries.
13

April 1, 2012 - September 30, 2012

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 agency employee, an FEC contractor, 

consultant, or a person or entity involved in alleged 

wrongdoing affecting FEC programs and operations.

As discussed in OIG Hotline Information, all hotline 

complaints are evaluated to determine if they warrant 

an investigation. If an investigation is opened, the 

hotline complaint is closed and the matter re-opened 

as an investigative file. OIG investigations involve a 

detailed examination or inquiry into issues brought 

to our attention by various sources, and may include 

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

At the conclusion of an OIG investigation, the OIG 

prepares a report that sets forth the allegations and 

an objective description of the facts developed during the investigation. 

One (1) investigation was opened during this semiannual reporting period and remains open. 
14

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 are examples of the OIG’s additional activities:

•	 Risk Assessment Process

In May 2012, OIG implemented a new formal 

risk assessment process to aid in developing 

the annual OIG work plans. The purpose of the 

risk assessment is to better align OIG resources to areas that will provide the most value to 

the FEC. A risk assessment is "a process to 

identify, assess, respond to, and report on opportunities and threats that affect the achievement of objectives.” The new risk assessment 

process entails a comprehensive review of all 

the risk that could impact the FEC and was 

modeled after the COSO (The Committee of 

Sponsoring Organizations of the Treadway 

Commission)1 framework. The risk assessment 

was performed in three (3) phases, which are 

described below:

Phase 1 – Identifying the Audit Universe

1 COSO is recognized as a thought leader in the 

global marketplace on the development of guidance in the 

areas of risk and controls which enable good organizational governance and reduction of fraud.

The audit universe was compiled by identifying 

all possible audit segments within the FEC. An 

audit segment includes any program, process, 

function, or division within the FEC that could 

be subject to an audit.

Phase 2 – Performing the Risk Assessment

Once the audit universe was determined, the 

OIG staff held a meeting to identify the types of 

risk (“risk factors”) that could potentially impact 

the FEC. Several brainstorming sessions were 

held to (1) determine what would constitute a 

high, medium or low risk rating for each risk 

factor; (2) assess the degree of risk for the nine 

risk factors for every auditable segment based 

on the likelihood and impact the respective risk 

factor would have on the related auditable segment; and (3) determine how to calculate the 

overall risk score for each auditable segment.

When assigning risk ratings, OIG utilized our 

institutional knowledge and understanding of 

the audit segments, financial data gathered, 

information obtained from previous audits/inspections/investigations, as well as professional judgment. Then, all risk factors were weighted equally to calculate the overall risk score for 

each audit segment as a high, medium or low 

risk.

As part of this risk assessment process, 

OIG also met with the FEC Directors, one 

Commissioner, and several key FEC employees to discuss their individual concerns (if any) 

that they felt could potentially impact the FEC 

from achieving its mission, or have any impact 

to goals/objectives of a specific division within 

the FEC. We also asked for ideas or suggestions for audits/reviews for the upcoming year. 

Information obtained during these meetings 
15

April 1, 2012 - September 30, 2012

was incorporated into the risk assessment as 

we deemed appropriate.

Phase 3 – Developing the Annual Audit Plan

OIG utilized the results of the risk assessment 

to help prioritize projects to be included in the 

annual work plan. The OIG’s goal is to concentrate our efforts on the higher risk audit segments where feasible and appropriate. In addition, we also considered suggestions from FEC 

stakeholders obtained during meetings held 

with management. Once the risk assessment 

was completed, the entire OIG staff participated in planning meetings to help formulate the 

OIG’s FY 2013 work plan which is included in 

Appendix A.

Once the planning meeting(s) were completed, 

the IG, in consultation with the DIG, made the 

final determination for the OIG work plan. Each 

OIG staff person is then assigned projects for 

the upcoming year and the IG approves the 

annual employee performance plans which include the assigned projects. Work projects are 

prioritized and tracked in a planning worksheet. 

This worksheet is used throughout the year and 

assists OIG senior-level management in monitoring job scheduling and completion.

•	 The OIG replied to a Congressional inquiry from 

Congressman Issa requesting information on 

how the FEC OIG keeps Congress informed of 

matters, including use of the “seven-day letter.” 

The OIG also replied to Congressman Issa’s 

annual inquiry regarding open and unimplemented IG recommendations.

•	 The OIG performed the quality control assessment of FEC OIG policies and procedures in 

accordance with the quality control and assurance requirements of the Government Auditing 

Standards. This assessment was also utilized 

to comply with the Office of Management and 

Budget’s A-123: Management’s Responsibility 

for Internal Control, as revised.

•	 The OIG conducted an OIG Community Survey

on IT shared service providers. The purpose of 

this survey was to learn about the OIG community’s use of shared service providers for information technology service.
16

Office of Inspector General Semiannual Report to Congress

Council of the Inspectors General on 

Integrity and Efficiency (cigie) Act

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 Chairs, 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 general business of CIGIE. The Council meets 

monthly to discuss issues that will affect CIGIE.

The Inspector General also chairs the Inspector 

General Candidate Recommendation Panel. 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 Vice Chair of the 

Professional Development Committee. This committee is charged with ensuring there is strong, relevant 

training for the Inspector General community. Part of 

the charge of the committee, is to establish training 

academies for each of the professional designations 

in the IG community. This is an on-going project.

During this semiannual reporting period, the IG reviewed the CIGIE Training Institute Training Plan; 

reviewed CIGIE budget documents for the upcoming fiscal year; provided comments to CIGIE regarding new IGs at smaller agencies; provided additional comments on the revised Quality Standards 

for Federal Offices of Inspector General (also 

known as the Silver Book); and completed CIGIE’s 

Organizational Health Survey.

The IG participated in American University’s 

“Have Lunch with the IG” event sponsored by the 

CIGIE Training Academy. The OIG also attended a 

Congressional hearing on IG vacancies and served 

as a panel member for the CIGIE annual awards 

program.
17

April 1, 2012 - September 30, 2012

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

six months – April 1, 2012 through September 30, 2012.

These contacts were made through various sources such as telephone calls, e-mails, faxes, U.S. mail, and personal visits to the OIG.

Total

Contacts

OIG

Action

No Action

Necessary

Forwarded 

for Action

3,787 35 3,725 27

OIG Contacts
Office of Inspector General Semiannual Report to Congress

18

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, 2012 – September 30, 2012:

MEETINGS:

Host / Sponsor Topic / Subject

Council of Inspectors General on

Integrity and Efficiency 

Monthly Meetings

Executive Council Meetings

Professional Development Committee Meetings

Small OIG Meeting

Council of Counsels to the Inspectors General Monthly Meetings

Assistant Inspector General for Investigations Quarterly Meetings

Financial Statement Audit Network Network Meetings

Association of Government Accountants

The Watchful Eye: Preventing Fraud, Waste, and 

Abuse (breakfast meeting)

Data Analytics (breakfast meeting)

Federal Election Commission

Weekly Director’s Meetings

Finance Committee Meetings

Administrative Liaison Group Meetings

Breach Team Meetings

FEC / Office of Inspector General Bi-weekly Staff Meetings
April 1, 2012 - September 30, 2012

19

TRAINING/CONFERENCES:

Host / Sponsor Topic / Subject

Council of Inspectors General on Integrity and 

Efficiency

Annual Conference

IG Authorities Course

Government Accountability Office Financial Statement Audit Conference

Federal Audit Executive Council Smarter Contract and Acquisition Management Auditing

GAO Green Book: Emotional Intelligence Training

Association of Government Accountants Federal Financial Systems Summit

Professional Development Conference

Association of Certified Fraud Examiners 

23rd Annual Conference and Exhibition

Social Media and Implications to the Fraud Examiner 

Community

Certified Fraud Examiner Review Course

Institute of Internal Auditors End of the Chapter Year Event: Come Celebrate Finding 

Fraud Past, Present, and Future

National Association of Black Accountants National Convention and Expo

Management Concepts Essential Communications for the Audit Lifecycle

Federal TeamMate User Group (FUG) Forum FUG Seminar

Inspector General Criminal Investigators 

Academy IG Public Corruption Investigations Training Program

National Science Foundation / OIG Criminal Discovery Training

USDA Graduate School Residential Professional Development Workshop

AuditNet Adding Value by Auditing Value

Data Analysis using Excel

Hemsley/Fraser Administrative Professional Conference
20

Office of Inspector General Semiannual Report to Congress

Host / Sponsor Topic / Subject

National Seminars / Skillpath

Business Writing Essentials: Make Your Point Clearly and 

Concisely

Strengthening Your People Skills in the Workplace

Communicating with Confidence, Credibility, and 

Influence 

How to Manage Priorities and Time 

Organizational Skills for the Overwhelmed

How to Disarm and Defuse Conflict and Confrontation

Business Etiquette

Combating Apathy in the Workplace

Self Improvement Training

Federal Election Commission

Privacy & PII Security Training

Hatch Act Training

Ethics Training

IT Security Awareness Training

ITD Web Portal Training

VOIP Telephone Training

Sexual Harassment Training 

Update on Litigation

Federal Election Commission / OIG TeamMate Training
21

April 1, 2012 - September 30, 2012

Reporting Requirements

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

General Act Amendments of 1988 are listed below:

 IG ACT DESCRIPTION PAGE

Section 4(a)(2) Review of Legislation 14

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) 24

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) 22

Section 5(a)(9) Recommendations that Funds be put to Better Use (Table II) 23

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
22

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
23

April 1, 2012 - September 30, 2012

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
24

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 26 25

Audit of the Commission’s 

Property Management Controls 

OIG-09-02 03/10 36 15 21

Federal Election2 Commission 

2011 Financial Statement Audit

OIG-11-01 11/11 20 5 15

2010 Follow-up Audit3 of 

Procurement and Contract 

Management

OIG-10-02 06/11 29 0 29

2010 Follow-up Audit4 of 

Privacy and Data Protection

OIG-10-03 03/11 45 7 38

Inspection of the Federal 

Election Commission’s Kastle 

Key Program

OIG-11-02 12/11 15 0 15

Cumulative Total of Outstanding Recommendations 143

2 Follow-up on the 20 open recommendations will be a part of the FEC’s 2012 Financial Statement Audit.

3 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.

4 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.
April 1, 2012 - September 30, 2012

25

Federal Election Commission 

Office of Inspector General 

Fiscal Year 2013 

Work Plan

Lynne A. McFarland 

Inspector General 

APPENDIX A: 
Office of Inspector General Semiannual Report to Congress

26

 TABLE OF CONTENTS 

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

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

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

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

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

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

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

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

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

Attachment 

FEC / OIG Strategic Plan – Fiscal Years 2010 - 2015 
April 1, 2012 - September 30, 2012

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

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

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

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

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

meeting its strategic mission, goals and objectives. 

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

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

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

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

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

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

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

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

cited by the OIG are addressed. 

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

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

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

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

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

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

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

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

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

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

will successfully complete the FY 2013 work plan that follows. 

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

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

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

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

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

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

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

1

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

2012), 3. 

1
Office of Inspector General Semiannual Report to Congress

28

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

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

Lynne A. McFarland 

Inspector General 

Federal Election Commission 

October 3, 2012 

2
April 1, 2012 - September 30, 2012

29

The Federal Election Commission 

In 1975, Congress created the Federal Election Commission (FEC) to administer 

and enforce the Federal Election Campaign Act (FECA). The duties of the FEC, an 

independent regulatory agency, are to disclose campaign finance information; enforce the 

provisions of the law; and oversee the public funding of Presidential elections. 

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

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

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

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

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

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

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

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

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

Office of Inspector General 

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

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

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

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

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

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

Commission and Congress fully and currently informed about problems and deficiencies 

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

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

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

on the following page contains the OIG’s organizational chart. 

3
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 

Senior 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 OIGwide goals and objectives are included in the strategic plan, which are as follows: 

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

FEC policies, programs, and operations. 

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

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

people and products. 

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

that fosters accountability, communications, teamwork, and personal and 

professional growth. 

4
April 1, 2012 - September 30, 2012

31

In addition, strategies and performance measures for each objective are included 

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

using feedback from stakeholder surveys to continually improve the OIG’s audit process. 

At the conclusion of each audit/inspection/review, the OIG distributes a stakeholder 

survey to the program officials to solicit their feedback on the usefulness of the completed 

OIG assignment and their overall satisfaction with the process. 

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

as necessary to ensure maximum effectiveness in meeting the changing needs of the 

FEC, consistent with the OIG’s statutory responsibilities. A detailed illustrative version 

of the OIG’s strategic plan can be found as an attachment of this annual work plan. 

Annual Planning and Methodology Strategies 

The planning methodology adopted by the OIG is based on a formal risk 

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

resources to areas that will provide the most value to the FEC. A risk assessment is a 

process to identify, assess, respond to, and report on opportunities and threats that affect 

the achievement of objectives. The OIG also solicits feedback and ideas from 

stakeholders throughout the year. The annual work plan will, of course, require periodic 

updates to reflect changes, such as new priorities, as well as any changes in OIG 

resources. 

In the summer of 2012, the OIG conducted our fifth annual planning process that 

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

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

also designed to yield work assignments that will identify opportunities for economy, 

efficiency and effectiveness in FEC programs and operations; and detect and prevent 

fraud, waste, abuse and mismanagement. The priority for conducting work assignments 

is based on (1) mandatory legislative requirements; (2) emphasis by the President, 

Congress, and the Commission; (3) a program’s susceptibility to fraud, manipulation, or 

other irregularities; (4) dollar magnitude or resources involved in the proposed area; (5) 

management needs identified through consultation with primary organization heads; (6) 

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

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

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

or other factors. 

5
Office of Inspector General Semiannual Report to Congress

32

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

divided into three primary categories: 

(1) Audits/Inspections/Reviews; 

(2) Investigative Program; and 

(3) Special Projects. 

OIG 2013 Work Plan 

AUDITS/INSPECTIONS/REVIEWS 

The term “audit” is used to describe work performed by auditors in examining 

financial statements, as well as work performed in reviewing compliance with applicable 

laws and regulations, the economy and efficiency of operations, and the effectiveness in 

achieving program results. These audits are prepared in accordance with generally 

accepted government auditing standards and vary in scope and complexity. Inspections 

and reviews are conducted in accordance with quality standards issued by the federal 

Inspector General community. 

For fiscal year 2013, the following assignments are planned: 

1. Audit of the Federal Election Commission’s 2012 and 2013 Financial 

Statements. 

In accordance with the Accountability of Tax Dollars Act of 2002, the FEC is 

required to prepare annual financial statements in accordance with Office of 

Management and Budget (OMB) Circular No. A-136, Financial Reporting 

Requirements. The Chief Financial Officers Act of 1990, as amended, requires the 

FEC Inspector General, or an independent external auditor selected by the IG, to 

audit the agency financial statements. 

We will oversee the audit conducted by the OIG’s independent public accounting 

firm Leon Snead & Company. The OIG is responsible for 1) reviewing the 

auditor’s approach and planning of the audit; 2) evaluating the qualifications and 

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

audit documents and reports to ensure compliance with government auditing 

standards, and OMB Bulletin No. 07-04, Audit Requirements for Federal Financial 

Statements, as revised; and 5) other procedures the OIG deems necessary to 

oversee the contract and audit. 

Planned period of audit: May 2012 – November 2012; 

May 2013 – November 2013. 

6
April 1, 2012 - September 30, 2012

33

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

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

Office during the first part of fiscal year (FY) 2013. The HR Office is a critical 

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

include recruitment and retention of qualified staff; employee-employer relations; 

administration of employee benefits; maintenance and processing of personnel 

records; training; among other responsibilities. The OIG audit will focus on two 

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

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

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

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

Planned period of audit: July – December 2012. 

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

Management Process 

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

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

determine whether the Office of the Chief Financial Officer provides FEC 

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

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

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

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

Planned period of audit: January – April 2013. 

4. On-Going Audit Follow-up. 

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

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

there were 143 outstanding audit recommendations representing five audits and 

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

following responsibilities: (1) review implemented audit recommendations to 

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

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

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

management to discuss progress to implement audit recommendations. 

Planned period of audit followup: On-going throughout FY 2013. 

7
Office of Inspector General Semiannual Report to Congress

34

5. Audit Peer Review. 

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

fiscal year as part of the Council of Inspectors General on Integrity and 

Efficiency’s audit peer review program. Government auditing standards require 

audit organizations to have an external review of their quality control system at 

least every three years. 

Planned period of audit peer review: Fiscal year 2013. 

6. Limited Scope Inspections. 

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

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

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

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

and effectiveness of FEC programs. 

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

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

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

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

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

2012. 

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

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

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

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

information technology planning process, leasehold improvements and the 

agency printing program may be performed, time permitting. 

7. Additional Work Assignments. 

Additional work assignments may be undertaken during FY 2013 based on 

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

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

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35

INVESTIGATIVE PROGRAM 

The OIG’s investigative program is intended to add value to the agency’s programs 

and operations by identifying and investigating allegations of fraud, waste, abuse and 

misconduct leading to criminal, civil, and administrative penalties and recoveries. 

Investigations typically originate as hotline complaints and may result in formal 

investigations if the OIG believes an investigation is warranted. The OIG’s investigative 

program also provides for initiatives designed to monitor specific high-risk areas within 

FEC programs and operations in order to proactively identify vulnerabilities in order to 

prevent fraud, waste and abuse. 

For fiscal year 2013, the following investigative assignments are planned: 

1. Manage Hotline Complaints and Investigation Caseload. 

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

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

investigations. 

2. Proactive Investigative Initiatives. 

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

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

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

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

initiatives to prevent fraud, waste, abuse and misconduct. 

3. Investigative Peer Review. 

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

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

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

to determine whether internal control systems are in place and operating 

effectively to provide reasonable assurance that professional investigative 

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

analyze FEC OIG existing policies and procedures, conduct interviews with 

selected OIG management officials and the investigator, and sample closed 

investigative files and other administrative records, as warranted. 

Planned period of investigative peer review: Fiscal year 2013. 

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Office of Inspector General Semiannual Report to Congress

36

4. Outreach. 

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

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

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

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

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

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

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

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

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

waste and abuse to the OIG. 

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

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

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

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

SPECIAL PROJECTS 

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

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

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

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

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

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

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

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

respond to the additional requirements. 

For fiscal year 2013, the following are examples of the special projects and activities 

planned by the OIG: 

1. Participate and Attend Professional Working Group and Other Meetings. 

The Inspector General or OIG staff will regularly attend the following Council of 

the Inspectors General on Integrity and Efficiency (CIGIE) professional working 

group meetings: monthly CIGIE meetings; Executive Council of CIGIE; CIGIE 

Professional Development Committee; IG Candidate Recommendations Panel 

Committee; IG Council of Counsels; Assistant Inspector General for 

Investigations; Federal Audit Executive Council; and Financial Statement Audit 

Network Group. 

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37

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

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

FEC town-hall meetings during the FY. 

2. Semiannual and Quarterly Reporting. 

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

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

OIG. Semiannual reports summarize OIG activities during the immediately 

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

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

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

3. Professional Development and Training. 

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

increase professional knowledge and proficiency, and ensure staff meet continuing 

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

professional training during the fiscal year to maintain and improve their 

knowledge, skills and abilities. 

4. Update Audit and Investigative Manuals. 

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

updated audit manual will incorporate recent changes to the Government Auditing 

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

to the OIG’s investigative program. 

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Office of Inspector General Semiannual Report to Congress

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FEC / OIG Strategic Plan - Fiscal Years 2010 - 2015 

OIG Products: To provide products 

and services that promote positive 

change in FEC policies, programs, and 

operations. 

OIG Process: To develop and implement 

processes, policies, and procedures to ensure 

the most effective and appropriate use of OIG 

resources in support of our people and 

products. 

OIG Staff: To maintain a skilled and motivated 

work force in an environment that fosters 

accountability, communications, teamwork, and 

personal and professional growth. 

Objective A: Deliver timely, high-quality 

products and services that promote 

positive change. 

Strategy: 

- establish common OIG standards for communicating 

results; 

- conduct quality assurance programs; 

- solicit appropriate internal and external review and 

comment; 

- comply with applicable statutory guidelines and 

standards; 

- set realistic and appropriate milestones. 

Objective B: Address priority issues 

and concerns of the Commission, 

Management, and Congress. 

Strategy: Perform work that supports; 

- Federal Election Commission and Congressional 

priorities; 

- Strategic Management Initiative efforts; 

Focus OIG attention in the following areas of 

emphasis: 

- managing change; 

- resource allocation in relation to policy objectives; 

- delivery of client service; 

- causes of fraud and inefficiency; and, 

- automation and communication. 

Objective C: Follow-up and evaluate 

results of OIG products and services to 

assess their effectiveness in promoting 

positive change. 

Strategy: 

- Identify, as appropriate, lessons learned to improve 

timeliness and quality; and, 

- conduct follow-up reviews to determine if intended 

results have been achieved. 

Objective D: Satisfy customers, 

consistent with the independent nature 

of the OIG. 

Strategy: 

- establish professional communication and 

interaction with customers to promote the open 

exchange of ideas; 

- incorporate customer feedback, as appropriate; and, 

- be open to customer-generated solutions and 

options. 

Objective A: Maintain a dynamic strategic 

planning process. 

Strategy: 

- periodically review and update the strategic plan to 

address changing OIG and FEC priorities; and, 

- identify factors that influence organizational change 

and develop short and long term plans to address them. 

Objective B: Plan and conduct costeffective work that address critical issues 

and results in positive change. 

Strategy: 

- solicit FEC and Congressional input in planning OIG 

activities; 

- develop internal planning mechanisms to support FEC 

goals and priorities; 

- ensure that priorities of IG are effectively 

communicated; and, 

- identify specific targets for OIG review that are the most 

cost-effective 

Objective C: Identify customer needs and 

provide products and services to meet 

them. 

Strategy: 

- establish new customer feed back mechanisms;

- consider and evaluate customers feedback when

planning and developing products and services;

- respond to Congressional inquires and request for

briefing and testimony;

- promote open exchange of ideas and information

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

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

information received through the OIG hotline and other

sources.

Objective D: Implement efficient, effective, 

and consistent resolution and follow-up 

procedures. 

Strategy: 

- ensure that IG follow-up procedures are followed and 

that management is aware of their role in the process; 

- establish common OIG standards for terminology, date 

maintenance and communications. 

Objective E: Establish a positive and 

productive working environment. 

Strategy: 

- reengineer or streamline OIG procedures to achieve the

most effective use of resources; and,

- ensure that necessary technologies, evolving and

otherwise, are made available to staff as needed.

Objective A: Attract and retain well-qualified, 

diverse and motivated employees. 

Strategy: 

- develop and implement a comprehensive recruiting program 

that attracts a broad population with the knowledge, skills, 

abilities, and expertise necessary to make meaningful 

contributions to the OIG; 

- assess employee satisfaction and develop strategies to 

address employee concerns; 

- identify reasons for staff departures and develop plans to 

foster greater staff retention; and, 

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

force. 

Objective B: Provide training and 

developmental opportunities to employees. 

Strategy: 

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

office needs as well; 

- ensure that Government Auditing Standards in relation to 

training are adhered to; and, 

- maintain a reporting system to ensure that educational 

requirements are met. 

Objective C: Assess, recognize, and reward, 

when possible, performance that contributes to 

achieving the OIG mission. 

Strategy: 

- develop and articulate expectations for each employee's 

performance, including contributions in meeting the mission & 

goals of the OIG; and, 

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

exceptional employee performance. 

Objective D: Create and maintain a working 

environment that promotes teamwork and 

effective communication. 

Strategy: 

- ensure that communication between employees is open; 

- provide employees with the tools and incentives they need to 

adequately perform their duties. 

Performance Measures: Determine the 

timeliness and quality of products and Performance Measures: An annual audit Performance Measures: All employees meet 

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

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

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

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

months of the report issue date. 
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