Office of the Inspector General

Commodity Futures Trading Commission

Semiannual Report to Congress

October 1, 2021 – March 31, 2022
INSPECTOR GENERAL A. ROY LAVIK

Roy Lavik is the longest serving Inspector General 

currently in office.1 He has served since 1990. 

Roy Lavik has over 50 years of federal service, primarily in the area of anti-trust and regulatory 

law. He has held evaluation review positions at the Federal Trade Commission and the Federal 

Reserve Board, and has supervised litigation in antitrust cases. Additionally, he has spent time in 

private practice performing corporate counseling. A Knoxville, Tennessee native, Mr. Lavik 

received undergraduate, law school, and graduate business school degrees from the University of 

Chicago. Mr. Lavik began service as Inspector General for the CFTC in October 1990. 

The IG is a member of the Council of Inspectors General on Financial Oversight (CIGFO), created 

under the Dodd-Frank Act to examine the work of the Financial Stability Oversight Council 

(FSOC). The IG is also member of the Council of the Inspectors General on Integrity and 

Efficiency (CIGIE), an independent entity established within the executive branch to address 

integrity, economy and effectiveness issues that transcend individual Government agencies and to 

aid in the establishment of a professional, well-trained and highly skilled workforce in the Offices 

of Inspectors General. The IG is a member of the CIGIE Legislation Committee, which monitors 

legislation impacting the IG community and creates a yearly legislative agenda for the IG 

community. 

 

1

 Frank Chen, Employment Duration and Attrition of Federal and State Inspectors General in the United States, 

page 75, The Graduate Center, City University of New York, September 2019 

(https://academicworks.cuny.edu/gc_etds/3289/). 
U.S. COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW, Washington, DC 20581

Telephone: (202) 418-5110

April 29, 2022 

TO: Rostin Behnam, Chairman 

Kristin Johnson, Commissioner

Christy Goldsmith Romero, Commissioner

Summer Mersinger, Commissioner 

Caroline Pham, Commissioner 

FROM: A. Roy Lavik

Inspector General

SUBJECT: Semiannual Report of the Office of the Inspector General 

Attached is the Office of the Inspector General’s Semiannual Report for the period from 

October 1, 2021, through March 31, 2022. This report is submitted to you in accordance with the 

requirements of Section 5 of the Inspector General Act of 1978, as amended, and summarizes 

completed reports and ongoing projects during the reporting period. 

I appreciate your continuing support of my Office. 

:OIG OFFICE OF THE 

INSPECTOR GENERAL 
i 

SEMIANNUAL REPORT 

OF THE U.S. COMMODITY FUTURES TRADING COMMISSION

OFFICE OF THE INSPECTOR GENERAL

October 1, 2021 – March 31, 2022 

TABLE OF CONTENTS

EXECUTIVE SUMMARY .......................................................................................................... 1

CFTC PROGRAMS and OPERATIONS .................................................................................. 1

CFTC OIG RESPONSIBILITIES, RESOURCES, ORGANIZATION, and 

INDEPENDENCE......................................................................................................................... 2

REQUIRED STATEMENT REGARDING INFORMATION ACCESS AND ASSISTANCE ........................... 5

AUDIT OPERATIONS ................................................................................................................ 6

COMPLETED AUDITS, AUDIT REVIEWS, AND OTHER AUDIT PROJECTS ........................................ 6

Audit of the CFTC’s FY 2021 Annual Financial Report ........................................................ 6

Audit of the CFTC’s FY 2021 Customer Protection Fund ..................................................... 6

Federal Information Security Management Act Review: FY 2021 ........................................ 6

Modified Peer Review of Denali Commission Office of the Inspector General ..................... 7

ONGOING AUDITS, AUDIT REVIEWS, AND OTHER AUDIT PROJECTS ............................................ 7

Audit of the CFTC’s FY 2022 Annual Financial Report ........................................................ 7

Audit of the CFTC’s FY 2022 Customer Protection Fund ..................................................... 7

CFTC Compliance with the Payment Integrity Information Act ............................................ 7

Council of Inspectors General on Financial Oversight: Crisis Response .............................. 7

Council of Inspectors General on Financial Oversight: Response to the Executive Order on 

Climate-Related Financial Risk .............................................................................................. 8

AUDIT REPORTS AND REVIEWS OVER SIX MONTHS OLD; REQUIRED STATEMENTS .................... 8

Table 1: Unimplemented Recommendations ..................................................................... 8

Table 2: Detail of Unimplemented Recommendations ...................................................... 9

INSPECTIONS & EVALUATIONS ........................................................................................... 9

ONGOING INSPECTIONS & EVALUATIONS .................................................................................. 10

CFTC Whistleblower Office’s Confidentiality Protections .................................................. 10

CFTC Policies and Procedures Concerning Capturing, Retaining and Accessing Cell 

Phone Data, Including Text Messages, Location, and Other Information / Data ................ 10

OIG Inspection and Evaluation of the CFTC’s Current and Post-Covid Lease Operations 

and Space Planning .............................................................................................................. 10

OIG Inspection and Evaluation of the CFTC’s Disaster Preparedness ............................... 10

INVESTIGATIVE OPERATIONS ........................................................................................... 11

INVESTIGATIONS ........................................................................................................................ 11

2021-I-4 Pay Protection Program Proactive Investigation, Phase One .............................. 11
ii

2021-I-6 Allegation of Unqualified Personnel ..................................................................... 11

2021-I-8 Allegation of Misuse of Personal Email and Equipment ....................................... 12

2021-I-9 Time and Attendance Fraud Allegation ................................................................. 12

ALLEGATIONS ............................................................................................................................ 12

ONGOING INVESTIGATIVE MATTERS AND REQUIRED DISCLOSURES .......................................... 13

Table 3: Investigative Statistics for Referrals and Whistleblower Retaliation ................ 13

LEGAL & ECONOMIC RESEARCH ..................................................................................... 14

ONGOING LEGAL & ECONOMIC RESEARCH PROJECTS ............................................................... 14

White Paper Evaluating CFTC Experience with Digital Assets ........................................... 14

White Paper Evaluating CFTC Experience with the Administrative Procedure Act (APA) 14

LEGISLATIVE & REGULATORY PROJECTS ................................................................... 14

PEER REVIEWS ........................................................................................................................ 15

Most Recent Peer Review of the CFTC OIG Audit Function ............................................... 15

Most Recent Peer Review of the CFTC OIG Investigative Function.................................... 16

SUMMARY of FINAL REPORTS NOT MADE PUBLIC .................................................... 16

ADMINISTRATIVE ACTIVITIES .......................................................................................... 16

ESTABLISHMENT OF AUDIT PROTOCOLS .................................................................................... 16

MIGRATION TO THE CLOUD ....................................................................................................... 16

UPDATE TO OIG WEBPAGES AND ESTABLISHMENT OF OIG ALLEGATION INTAKE FORM ......... 17

OIG TRANSITION TO A POST-PANDEMIC WORKPLACE .............................................................. 17

STRATEGIC PLAN for the OFFICE of INSPECTOR GENERAL ..................................... 18

MISSION, VISION, AND VALUES ................................................................................................. 18

STRATEGIC GOAL 1: EVALUATE THE ECONOMIC IMPACT OF CFTC REGULATORY ACTIONS

THROUGH LEGAL ANALYSIS, WHITE PAPERS, INSPECTIONS AND EVALUATIONS, MANAGEMENT

REVIEWS, AND OTHER PRODUCTS .............................................................................................. 19

Office of Legal and Economic Research (OLER): Legislative, Economic, and Regulatory 

Review Agenda ...................................................................................................................... 19

STRATEGIC GOAL 2: ADDRESS HIGH IMPACT ISSUES IN CFTC ADMINISTRATIVE AND MISSION

PERFORMANCE ........................................................................................................................... 19

Office of Audits: Audit and Review Agenda .......................................................................... 19

STRATEGIC GOAL 3: ADDRESS EMPLOYEE AND CONTRACTOR MISCONDUCT PROMPTLY,

THOROUGHLY, AND RELIABLY .................................................................................................. 21

Office of Investigations: Investigative Agenda ..................................................................... 21

STRATEGIC GOAL 4: ADDRESS MINOR OPERATIONAL AND MANAGEMENT ISSUES PROMPTLY

THROUGH THE USE OF INSPECTIONS & EVALUATIONS (I&E) ..................................................... 21
iii

CONTACTING the OFFICE of the INSPECTOR GENERAL ............................................. 22

APPENDICES ............................................................................................................................. 23

Appendix 1 – Reports Issued with Questioned Costs .............................................................. 23

Appendix 2 – Reports Issued with Recommendations That Funds Be Put to Better Use .... 24

Appendix 3 - Index of IG Act Reporting Requirements ......................................................... 25
EXECUTIVE SUMMARY

1

This semiannual report is issued by the Commodity Futures Trading Commission 

(CFTC) Office of the Inspector General (OIG) pursuant to the Inspector General Act of 1978, as 

amended.2 It summarizes OIG’s activities and accomplishments for the period October 1, 2021, 

through March 31, 2022. During this period: 

• The Office of Audits completed three audits, and two technical reviews of CFTC’s

compliance with financial and information security requirements, with no significant

issues noted; completed a peer review of the Denali Commission OIG’s audit function;

and began or continued work on two audits, one review, and two collaborative surveys.

• The Office of Investigations began the reporting period with four investigations and four

allegations pending. We completed two of the pending investigations, opened two

investigations, completed one of the new investigations, and finished the reporting period

with three investigations pending. We received and closed, referred, or investigated 39

incoming allegations, with no pending allegations at the close of the reporting period.

• We began the reporting period with two pending Inspections and Evaluations (I&E), and

issued a Management Draft to the Commission for one pending I&E prior to the close of

the reporting period. We began work on two new I&Es; both were pending at the close of 

the reporting period. We finished the reporting period with four pending I&Es.

• The Office of Legal and Economic Research continued work on two whitepaper projects

begun in a prior reporting period.

• A senior OIG employee served on detail during this reporting period to the U.S.

Department of the Treasury, contributing to efforts to establish an interagency committee

to address Household Resilience to Climate Change.

CFTC PROGRAMS and OPERATIONS

Established by statute as an independent agency in 1974, the CFTC assumed 

responsibilities previously belonging to the U.S. Department of Agriculture since the 1920s.3

The mission of the CFTC is: “To promote the integrity, resilience, and vibrancy of the U.S. 

derivatives markets through sound regulation.”4 The CFTC and its predecessor were established 

to protect market participants and the public from fraud, manipulation, and other abusive 

practices in the commodity futures and options markets. After the 2008 financial crisis and the 

2 P.L. 95-452, 92 Stat. 1101 (1978). 3 U.S. Commodity Futures Trading Commission, Strategic Plan FY 2020-2024 (May 2020), page 4. All links in this 

paper were last tested on April 24, 2022. 

4 Id., page 3. 
2

subsequent enactment of the Dodd-Frank Act, the CFTC’s mission expanded to include 

oversight of the swaps marketplace.5

 

The Commission consists of five Commissioners appointed by the President, with the 

advice and consent of the Senate, who serve staggered five-year terms. The President appoints 

one of the Commissioners to serve as Chairman. No more than three Commissioners may be 

from the same political party.6 The CFTC maintains offices in Washington, D.C.; New York, 

NY; Chicago, IL; and Kansas City, MO. The CFTC organization consists of the following 

Divisions and Offices (not including OIG):7

• Division of Clearing and Risk (DCR)

• Division of Enforcement (DOE)

• Division of Market Oversight (DMO)

• Market Participants Division (MPD)

• Division of Data (DOD)

• Legal Division (LD)

• Division of Administration (DA)

• Office of the Chief Economist (OCE)

• Office of International Affairs (OIA)

• Office of Public Affairs (OPA)

• LabCFTC

• Office of Legislative and Intergovernmental Affairs (OLIA)

• Office of Minority and Women Inclusion (OMWI)

CFTC OIG RESPONSIBILITIES, RESOURCES, ORGANIZATION, 

and INDEPENDENCE

CFTC OIG RESPONSIBILITIES

The CFTC OIG was created in 1989 in accordance with the 1988 amendments to the 

Inspector General Act of 1978.8 OIG was established as an independent unit to: 

• Promote economy, efficiency, and effectiveness in the administration of CFTC programs

and operations, and detect and prevent fraud, waste, and abuse in such programs and

operations;

5 Id., page 4.

6 7 U.S.C. § 2(a)(2). 7 https://www.cftc.gov/About/CFTCOrganization/index.htm. 8 The Inspector General Act Amendments of 1988, P.L. 100-504, 102 Stat. 2515 (1988). 
3

• Conduct and supervise audits and, where necessary, investigations relating to the

administration of CFTC programs and operations;

• Review existing and proposed legislation, regulations, and exchange rules and make

recommendations concerning their impact on the economy and efficiency of CFTC

programs and operations or the prevention and detection of fraud and abuse;

• Recommend policies for, and conduct, supervise, or coordinate other activities carried out

or financed by such establishment for the purpose of promoting economy and efficiency

in the administration of, or preventing and detecting fraud and abuse in, its programs and

operations; and

• Keep the Commission and Congress fully informed about any problems or deficiencies in

the administration of CFTC programs and operations and provide recommendations for

correction of these problems or deficiencies.

The IG is appointed by the Commission in accordance with the applicable laws and regulations

governing appointments within the CFTC, and may be removed upon the written concurrence of 

a 2/3 majority of the Commission.9 CFTC OIG conducts audits engagement in accordance with

the Generally Accepted Government Auditing Standards (GAGAS) issued by the Government 

Accountability Office (GAO). OIG conducts inspections, evaluations, and other covered 

products in accordance with the Quality Standards for Inspection and Evaluation issued by the 

CIGIE. OIG investigations are performed in accordance with the Quality Standards for

Investigations issued by the CIGIE. The Office of Legal and Economic Research may conduct 

inspections, evaluations, and other covered products in accordance with the CIGIE standards 

cited above, and may produce white papers and other studies in accordance with internal 

standards. Our webpage is located at https://www.cftc.gov/About/OfficeoftheInspectorGeneral/index.htm. 

Inspector General A. Roy Lavik has served since 1990.

10 The IG is a member of the 

CIGFO, created under the Dodd-Frank Act to examine the work of the FSOC.

11 The IG is also

member of the CIGIE, an independent entity established within the executive branch to address 

integrity, economy and effectiveness issues that transcend individual Government agencies and 

to aid in the establishment of a professional, well-trained and highly skilled workforce in the 

Offices of Inspectors General; and the CIGIE Legislation Committee, which monitors legislation

impacting the IG community and creates a yearly legislative agenda for the IG community. 

9 5 U.S.C. App. §§ 8G(c), 8G(e)(1). 10 Inspector General Lavik has been recognized as the longest serving Inspector General currently in office. See fn.1. 11 Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L.111-203, 124 Stat. 1376 (2010) (“Dodd-Frank 

Act” or “Dodd-Frank”). CIGFO is chaired by the Inspector General of the U.S. Dept of the Treasury and its 

members include the Inspectors General of Treasury, the Federal Deposit Insurance Corporation, the CFTC, the 

Department of Housing and Urban Development, the Board of Governors of the Federal Reserve System, the 

Consumer Financial Protection Bureau, the Federal Housing Finance Agency, the National Credit Union 

Administration, the Securities and Exchange Commission, and the Special Inspector General for the Troubled Asset 

Relief Program. FSOC consists of 10 voting members and 5 nonvoting members and brings together the expertise of 

federal financial regulators, state regulators, and an independent insurance expert appointed by the President.
4

CFTC OIG RESOURCES AND ORGANIZATION

CFTC OIG maintains an Office of Audits, Office of Investigations, and Office of Legal 

and Economic Research. At the end of the reporting period, the CFTC OIG consisted of nine 

FTEs. Our organizational chart follows: 

A. Roy Lavik

Inspector General

(vacant)

Administrative 

Assistant

(Contractor)

Judith Ringle

Deputy IG/Counsel

OFFICE OF AUDIT

Miguel Castillo, Assistant Inspector 

General for Audit

OFFICE OF LEGAL AND ECONOMIC 

RESEARCH

OFFICE OF INVESTIGATIONS

Assistant Inspector General for 

Investigations (Vacant)

Tony Baptiste 

Senior Program Analyst

(Detailed U.S. Dept of the Treasury)

Branco Garcia

Senior Auditor 

Performance and IT Audits

Timothy Peoples

Senior Auditor

Financial and Performance Audits

Christopher Mufarrige

Attorney/Economist

Thomas Burnham

Attorney/Economist

Stephen J. Obie

Attorney

CFTC OIG

March 2022

Natalie Abbas

Paralegal (Contractor)

At the end of this reporting period we said farewell to our contracted administrative 

assistant, Erica Bridges, who excelled in the execution of her duties for OIG CFTC. She left to 

pursue other career opportunities, and we wish her well in all her future endeavors. 
5

In addition, we would like to recognize our interns who participated in the A. Roy Lavik 

Honors Inspector General Legal Clerkship Program and produced work of exceptional quality 

for our Office during the reporting period: 

• Ben Hyman, Georgetown University Law Center, J.D. Candidate 2023

• Jenna Fattah, George Washington University Law School J.D. Candidate 2022

• Olivia Van Dervort, Georgetown University Law Center, J.D. Candidate 2023

• Tyler Piper, George Washington University Law School, J.D. Candidate 2023

• Marsha Jobaida, George Washington University Law School, J.D. Candidate

2022

OIG INDEPENDENCE

OIG operates independently of the Agency and has not experienced any interference from 

the CFTC Chairman or Commissioners in connection with the conduct of any investigation, 

inspection, evaluation, review, or audit. Our investigations have been pursued regardless of the 

rank or party affiliation of the target. OIG also has conducted audits, inspections, evaluations, 

and reviews without interference where it has perceived the opportunity to recommend 

improvement to futures regulation efforts, again without regard to the party affiliation of any 

Chairman or Commissioner.12 

REQUIRED STATEMENT REGARDING INFORMATION ACCESS AND ASSISTANCE

During the reporting period, no reports were made to the Agency head under section 

6(b)(2) concerning information or assistance unreasonably refused or not provided (mandated 

under section 5(a)(5) of the Act), and there were no direct or intentional attempts by CFTC to 

interfere with Inspector General independence through: 

Type Number Explanation

Budget constraints 0 N/A

Resistance to oversight 0 N/A

Delayed information access 0 N/A

Other 0 N/A

12 The Inspector General Act of 1978, as amended, states: “[T]he head of the designated Federal entity shall not 

prevent or prohibit the Inspector General from initiating, carrying out, or completing any audit or investigation....” 5 

U.S.C. App. 3 § 8G(d)(1). 
AUDIT OPERATIONS 

6

COMPLETED AUDITS, AUDIT REVIEWS, AND OTHER AUDIT

PROJECTS

Financial 

Audit of the CFTC’s FY 2021 Annual Financial Report – The objective of this Congressionally 

mandated audit13 is to render an opinion on the agency financial report (financial statements) in 

accordance with GAGAS. The independent public auditor rendered an “unqualified” or clean 

opinion for the agency’s financial statements. 

Audit of the CFTC’s FY 2021 Customer Protection Fund (CPF) – The objective of this 

Congressionally mandated audit14 is to render an opinion on customer protection fund financial 

statements in accordance with GAGAS. The independent public auditor rendered an 

“unqualified” or clean opinion for the CPF financial statements.

Information Technology Management and Security 

Federal Information Security Management Act Review: FY 2021 – The objective of this review 

was to evaluate CFTC’s information security program and practices as required by FISMA.15 In 

addition, the following technical assessments were completed by contracted information security 

professionals in coordination with OIG and reported separately: 

 IT Risk Management Program and Procedures Assessment: the objective was to assess and

evaluate the effectiveness of risk management procedures in applying NIST guidance.

 Vulnerability Management Program and Procedures Assessment: the objective was to assess

and evaluate the effectiveness of the Information Security Continuous Monitoring (ISCM)

program.

We made one significant recommendation to improve vulnerability management in which CFTC 

was making corrective actions. We also performed follow-up to prior year process controls 

notice of findings and recommendations. There was one prior year recommendations open at the 

end of this reporting period. Given the sensitivity of the reports, we did not publish them on our 

webpage.

13 The Accountability of Tax Dollars Act, P.L. 107-289, 116 Stat. 2049 (2002). 14 P.L. 111-203, § 748, 124 Stat. 1739 (2010). 15 Federal Information Security Management Act of 2002 (FISMA), P.L. 107-347 (Title III), 116 Stat. 2946 (2002).
7

Other

Modified Peer Review of Denali Commission Office of the Inspector General

The objective of this modified peer review was to determine whether, for the 3-year period 

ending September 30, 2020, Denali OIG audit organization’s established policies and procedures 

for the audit function are current and consistent with applicable professional standards. The 

review also determined whether controls over monitoring of contracted GAGAS engagements 

performed by Independent Public Accountants (IPAs), where the IPA serves as the auditor, are 

suitably designed, and complied with. We determined that monitoring controls were effective, 

and that audit policies were not required because the Denali OIG audit organization relied solely 

on IPAs during the period reviewed. 

ONGOING AUDITS, AUDIT REVIEWS, AND OTHER AUDIT PROJECTS

Financial 

Audit of the CFTC’s FY 2022 Annual Financial Report – The objective of this Congressionally 

mandated audit16 is to render an opinion on the agency financial report (financial statements) in 

accordance with GAGAS. 

Audit of the CFTC’s FY 2022 Customer Protection Fund (CPF) – The objective of this 

Congressionally mandated audit17 is to render an opinion on customer protection fund financial 

statements in accordance with GAGAS. 

CFTC Compliance with the Payment Integrity Information Act (PIIA) of 2019 – Our objectives 

are to determine whether the CFTC is compliant with PIIA18 given that it did not report on 

payment integrity in its 2021 Financial Statements and to perform an independent risk 

assessment of CFTC payments to determine whether CFTC is a Phase 1 or Phase 2 agency.19 

Other

Council of Inspectors General on Financial Oversight: Crisis Response – During the prior 

reporting period, CIGFO convened a working group to compile guidance to FSOC for preparing 

16 See fn. 13. 17 See fn. 14. 18 P.L. 116-117, 134 Stat. 113 (2020). 19 All programs with annual outlays over $10,000,000 will fall into one of two possible classifications: Phase 1 or 

Phase 2. Programs that are not likely to have an annual amount of improper payments (IP) plus unknown payments 

(UP) above the statutory threshold (which is either (1) both 1.5 percent of program outlays and $10,000,000 of all 

program payments made during the FY or (2) $100,000,000) are referred to as being in Phase 1. If a program in 

Phase 1 is determined likely to exceed the Phase 1 statutory threshold, then the program will move into ‘Phase 2’ the 

following year. Once in Phase 2, a program will have additional requirements. See, OMB Circular A-123, Appendix 

C, Requirements for Payment Integrity Improvement, OMB M-21-19, p.6, March 5, 2021.
8

for a crisis, along with crisis response lessons learned, based on detailed survey responses from 

the FSOC member agencies. This project was ongoing at the close of the reporting period, and 

we commented on a final report prior to the close of this reporting period. 

Council of Inspectors General on Financial Oversight: Response to the Executive Order on 

Climate-Related Financial Risk - The review objective is to determine what actions FSOC 

members have taken, or planned, in response to Executive Order (EO) 14030,20 and whether 

those actions are consistent with the policy, objectives, and directives set forth in the EO.

AUDIT REPORTS AND REVIEWS OVER SIX MONTHS OLD; REQUIRED STATEMENTS

Required Statements Regarding Commission Response Exceeding 60 Days, and Regarding 

Management Decisions Not Made

There were no audit reports issued during the reporting period lacking Commission 

response within 60 days, and no instances of an audit report issued before the commencement of 

the reporting period for which a management decision had not been made by the end of the 

reporting period. 

Required Statements Regarding Revised Management Decisions, and Regarding Inspector 

General Disagreement

No management decisions were revised during the reporting period, and the Inspector 

General did not disagree with any management decisions on OIG audit recommendations during 

the reporting period. 

Required Statements Regarding Significant Recommendations that have not been 

Completed, and Audit Reports for which there are any Outstanding Unimplemented 

Recommendations, Including Aggregate Potential Cost Savings 

There were no audit reports with a management action date over six months old where 

the recommendation for corrective action had not been completed. Outstanding 

recommendations are relayed in the two tables that follow, with explanatory text.

Table 1: Unimplemented Recommendations 

Fiscal

Year

Number of Reports 

with Unimplemented 

Recommendations 

Number of 

Unimplemented 

Recommendations 

Dollar Value of 

Aggregate 

Potential Cost 

Savings

No Comment 

Returned 

w/in 60 days

2022 1 1 0 0

2021 1 1 0 0

2020 1 1 0 0

Totals 3 3 0 0

20 Executive Order (EO) 14030, Climate-Related Financial Risk, 86 F.R. 27967 (May 20, 2021).
9

Table 2: Detail of Unimplemented Recommendations 

Fiscal 

Year

Audit Report Unimplemented Recommendations

2022 Federal Information Security 

Management Act Review: FY 

2021*

One significant recommendation to improve 

vulnerability management.

2021 Federal Information Security

Management Act Review: FY 

2020**

One recommendation to enhance CFTC’s privacy 

program. 

2020 CFTC’s Policies and Procedures 

Regarding Oversight of 

Cybersecurity Safeguards by 

Registered Entities***

Increase the number of dedicated employees to 

the divisions’ System Safeguard Examination 

(SSE) teams, in order to continuously assess 

cybersecurity risks at CFTC registrants.

* DA-Cybersecurity has updated the Vulnerability Management Policy to further meet the

deficiencies of the finding. DA-Cybersecurity has also established a tracking repository on

SharePoint to document vulnerabilities that cannot be remediated within the defined policy

timeframes. A set of standard operating procedures to guide its usage will be available by April

2022.

** The Commission continues to actively work on updating its privacy policies and procedures 

to ensure that they reflect current requirements in law and government-wide policies. 

*** Based upon the current threat intelligence landscape, DCR believes that an additional 

supervisory resource is needed to ensure adequate supervision of activities related to the DCO 

system safeguard program which includes examinations of DCOs for compliance with system 

safeguard regulations, notices identifying hardware or software malfunctions, notices identifying 

information security incidents, and notices identifying threats. A resource has been designated by 

the Chairman’s Office and all paperwork related to this initiative has been completed. DCR 

believes the progress made thus far in responding to the recommendations demonstrates a 

commitment to resolving the issue identified by the OIG. DCR requests that this 

recommendation be kept open with a revised target date for completion of June 30, 2022. 

INSPECTIONS & EVALUATIONS

We began the reporting period with two I&Es in process. During the reporting period 

we commenced two evaluations. One I&E was issued in Management Draft form during the 

reporting period, and all four I&Es were ongoing at the close of the reporting period. 
10

ONGOING INSPECTIONS & EVALUATIONS

CFTC Whistleblower Office’s Confidentiality Protections (2021-IE-2) – to assess the policies

and procedures concerning whistleblower confidentiality protections, including policies and 

procedures concerning inadvertent disclosures; and 

CFTC Policies and Procedures Concerning Capturing, Retaining and Accessing Cell Phone Data,

Including Text Messages, Location, and Other Information / Data (2021-IE-3) – to assess the

collection and retention policies of the CFTC with respect to CFTC issued mobile devices. OIG

assessed CFTC’s practices for capturing, retaining, and accessing data created on smartphones

issued to CFTC employees and contractors, including text messages, recorded messages and 

other recordings, lists, documents, location data, and other data. On March 31, 2022, OIG issued 

its draft report and draft recommendations to agency management. Preliminarily, OIG

determined that current practices risk violations of the Federal Records Act, and are not best

practices. OIG recommended the Agency adjust current practices and current controls, in 

accordance with the Federal Records Act, to better enable the Agency to regulate the markets

under its jurisdiction. Because CFTC requires significantly greater retention of electronic 

communications data of CFTC registrants, OIG believes the Agency should be able to undertake 

comparable practices both technologically and practically. We issued a Management Draft to the 

Commission for comment on March 31, 2022, with six proposed recommendations. 

During the reporting period, we commenced the following: 

OIG Inspection and Evaluation of the CFTC’s Current and Post-Covid Lease Operations and

Space Planning (2022-IE-1) – to assess the CFTC’s space needs post-pandemic and its plans to 

meet those needs in an efficient and compliant manner without undue taxpayer expense. This

assessment will be made against the backdrop of the unique opportunity of the federal 

government in right-sizing its real estate needs in light of the adoption of telework and remote 

work policies and in light of the CFTC’s efforts in promoting Diversity, Equity, and Inclusion 

(“DEI”) and the CFTC’s opportunity to support that DEI vision through nationwide recruiting 

and employment efforts utilizing remote work policies. OIG intends to analyze whether CFTC is

spending efficiently on current leases and current space build out, as well as the lessons learned 

and applied for each project. The scope of this inspection and evaluation will be FY2019 through 

FY2022. 

OIG Inspection and Evaluation of the CFTC’s Disaster Preparedness (2022-IE-2) – to assess the 

CFTC’s operations for crises preparedness. In particular, OIG will assess senior leadership’s 

knowledge and preparedness of succession authorities, continuity of operations planning and 

operations, use of GETS cards, and remote, offsite awareness and capabilities. This I&E is a

component of a broader effort by CIGFO21 to identify risks to the financial stability of the United

States; promote market discipline; and respond to emerging threats to the stability of the U.S. 

financial system. 

We finished this reporting period with four pending I&Es and no pending recommendations. 

21 See fn. 11. 
11

INVESTIGATIVE OPERATIONS

INVESTIGATIONS

We began the reporting period with four investigations pending, opened two additional 

investigations, and closed three investigations, therefore ending the reporting period with three 

pending investigations. Reports of Investigation issued during this reporting period follow: 

2021-I-4 Pay Protection Program Proactive Investigation, Phase One 

In the previous reporting period, OIG began a proactive investigation (2021-I-4) in 

coordination with CIGIE’s Pandemic Response Accountability Committtee (PRAC), CIGIE’s 

Pandemic Analytics Center for Excellence, and the Small Business Administration, involving 

multiple phases. Congress provided OIGs an exemption from the Computer Matching Act which 

enables greater data sharing, and many OIGs have created their own data analytics units. While 

we do not have a data analytics unit, we contracted with a third-party vendor for analytic support. 

OIG completed the first phase of this multipart investigation on March 30, 2022. In the 

first phase of this investigation, OIG matched Paycheck Protection Program (“PPP”) loan fund 

recipients with CFTC employees and determined whether those matched CFTC employees have 

approval for their outside business activities. CFTC employees may not engage in outside 

business activities without prior agency authorization, and may not operate an outside business 

using CFTC equipment or during CFTC working hours. OIG found irregularities in record 

keeping but did not uncover intentional misconduct by matched CFTC employees. OIG made ten 

recommendations regarding the streamlining of processes, development of training, and 

improvements in reporting to the Agency following the completion of the first phase of this 

investigation. The Agency’s response has not been received, and OIG intends to follow up on 

these recommendations after 30 days following issuance of the report. We note that there were 

positive improvements just from the fact that OIG requested documents in this investigation; we 

believe the Agency updated its Customer Reparations22 data as a result of a document request.

OIG is continuing the second and third phases of the investigation. OIG contracted with a 

third-party vendor to provide analytic support for examining the millions of records received in 

this investigation. OIG shared its findings and has collaborated with other OIG’s on investigative 

methods to maximize the value of this investigation to the oversight community. This 

investigative effort will support the oversight community as they root out purported historic 

levels of fraud, waste, and abuse in pandemic relief programs to ensure funds are used for their 

intended purpose. 

2021-I-6 Allegation of Unqualified Personnel

During the prior reporting period we received an allegation that two staff level employees

were unqualified to hold their positions, and opened an investigation. After reviewing 

communications by the staff in question, their performance assessments, and after interviews 

22 The CFTC’s Reparations Program provides a forum for resolving disputes between customers and registered 

commodity futures trading professionals. Information on the CFTC Reparations program may be found here. 
with co-workers and management, OIG determined that the allegations were not sustained. OIG 

closed the investigation with a memo to the file on March 28, 2022. 

12

Closed all four allegations pending at the close of the prior reporting period:

o Closed one allegation with the opening of an investigation

o Closed one allegation with a referral to another agency for action

o Closed one allegation upon consultation with the Department of Justice

o Closed one allegation when we learned the complainants had left CFTC or were no

longer interested in pursuing the matter, which was non-criminal

 Received 39 new allegations through the OIG email hotline (33), OIG phone hotline (4),

and by other OIG phone (2), and closed all 39 as follows:

ALLEGATIONS

2021-I-8 Allegation of Misuse of Personal Email and Equipment

The third investigation, begun in the prior reporting period, involved allegations that a 

CFTC employee used personal email and equipment to conduct official business, including 

potential improper transfer of confidential information and PII. Following investigation, OIG 

determined the employee’s actions did not rise to the level of criminal violations, but that 

misconduct on the part of the employee had occurred and recommended, in part, that the Agency 

consider disciplinary action. OIG made four recommendations to the agency in total. OIG issued 

its report of investigation to the Commission on March 31, 2022, requesting a response within 30 

days. 

2021-I-9 Time and Attendance Fraud Allegation 

During the prior reporting period we received an anonymous allegation that a CFTC 

employee had been falsely reporting time worked on their timesheets during the work-fromhome period of the COVID-19 pandemic. OIG opened an investigation during this reporting 

period, did not uncover any evidence of wrongdoing on the part of the employee, and closed the 

investigation; however, OIG became aware of the growing use of “mouse-movers” and other 

devices used to give the false impression of being active on the computer or working. OIG issued 

a report on January 14, 2022, with two recommendations to the Agency: that supervisors and 

employees be made aware that the use of these methods by a federal employee could provide the 

public with the wrong impression of the vital work being done remotely during the pandemic and 

that CFTC employees be reminded of the potential security risks of attaching unapproved 

devices to a CFTC computer. 

We have not reported on the implementation of the recommendations for investigations 

in this reporting period so as to provide the Agency with sufficient time to respond and/or 

implement. It is our intention to report on the implementation of recommendations made 

through completed investigations in future Semiannual Reports. 

We began the reporting period with four allegations pending and received an additional 39 

allegations during the reporting period which were dispensed as follows: 


13

o Referred 31 allegations to DOE

o Referred two complainants to CFTC (questions@cftc.gov) to address general

questions

o Referred one complainant to the CFTC Office of Proceedings Reparations Program

within DA for information and assistance

o Referred one complainant to the CFTC MPD for information and assistance

o Closed three allegations due to inadequate evidence23

o Closed one allegation with a new investigation opened

No allegations were pending at the close of the reporting period. 

ONGOING INVESTIGATIVE MATTERS AND REQUIRED DISCLOSURES

At the close of this reporting period we had three ongoing investigations, one initiated during 

this reporting period. All open investigations are confidential, as are the content of incoming 

allegations. As a policy, CFTC OIG does not disclose non-public details regarding open

investigations absent good cause; if an ongoing investigation is disclosed to the public it will be 

listed here. 

Table 3: Investigative Statistics for Referrals and Whistleblower Retaliation

October 1, 2021 – March 31, 2022 

A. Completed investigations 4

B. Referrals to prosecuting authorities for criminal prosecution 0 

C. Indictments from prior referrals 0

D. Whistleblower retaliation findings 0

We compiled these statistics from a review of our digital files.

It is our practice to discuss potential criminal investigations early with an Assistant 

United States Attorney (AUSA) in order to ensure matters of interest are coordinated from the 

outset. While we engaged with AUSAs during the reporting period as necessary to complete our 

work, no formal referrals for prosecution were made. 

There were no findings of whistleblower retaliation during this reporting period. There 

were no reports of investigation involving a senior Government employee where allegations of 

misconduct were substantiated.

23 Please know that OIG retains all investigation and allegation files for a period of 10 years; if additional 

information or allegations are received in the future, a closed matter may be reopened. 
14

LEGAL & ECONOMIC RESEARCH

ONGOING LEGAL & ECONOMIC RESEARCH PROJECTS

White Paper Evaluating CFTC Experience with Digital Assets

Digital assets—including, among other things, cryptocurrency—have been widely 

adopted and used by both market participants and ordinary consumers. The CFTC has played an 

active role in the digital asset space, offering information to the public in the form of education 

and guidance as well as prosecuting digital asset-related conduct that violates the CEA. This 

white paper will provide a general background of the digital asset market, the CFTC’s 

participation in the digital asset market, an overview of CFTC staff views and experience with 

digital assets, and potential recommendations for future CFTC engagement. This project was 

ongoing at the close of the reporting period. 

White Paper Evaluating CFTC Experience with the Administrative Procedure Act (APA)

The CFTC regularly adopts interpretations of law and uses a wide-range of formats to 

present and communicate these interpretations to its supervised entities, its own personnel, and 

the general public. This white paper has three principal goals: (1) Provide general background 

information regarding the APA’s requirements; (2) Provide the general public and Congress a 

taxonomy of the CFTC’s panoply of regulatory tools; and (3) Critically evaluate whether the 

CFTC’s regulatory tools and implementation comply with the APA. This analysis will include an 

evaluation of whether CFTC provides guidance that appears to be non-legislative in form but in 

substance attempts to bind the public. This project was ongoing at the close of the reporting 

period. 

LEGISLATIVE & REGULATORY PROJECTS

1. Introduction and Summary

As specified in Section 4(a)(2) of the Inspector General Act of 1978,24 the Office of

Legal and Economic Research (OLER) within OIG reviews the impact of existing and proposed 

legislation and regulations on CFTC programs and operations and makes recommendations 

regarding more effective or efficient alternatives or protections against fraud and abuse. The OIG

also reviews exchange rule proposals circulated to senior staff at the CFTC. 

OIG notifies the responsible Divisions as to any concerns with draft and final documents 

relating to legislation, rules or investigations. Formal comments were not submitted to the 

Commission during this reporting period. 

24 5 USC App. § 4(a)(2) (made applicable to CFTC OIG at 5 USC App. § 8G(g)).
2. Legislative Activities

OIG reviews legislation impacting programs and operations of the CFTC, and initiates

contact with Congressional staff concerning various Agency and IG issues as appropriate. This 

work is performed by OLER. In addition, the IG serves on the legislation committee for the 

Council of Inspectors General on Integrity and Efficiency, which comments on proposed 

amendments to the IG Act and other legislation affecting the IG community. CFTC OIG 

participated in legislation committee efforts. No formal projects were undertaken during this 

reporting period. 

15

PEER REVIEWS

An important function in each agency OIG is the peer review process. GAGAS require 

that audit organizations conducting audits of Federal agencies undergo peer reviews every three

years. The IG community has implemented a process to meet this requirement and, in accordance 

with GAGAS and CIGIE peer review quality control and assurance standards, an OIG audit team 

assesses other OIGs’ audit functions. The purpose of the peer review is to determine whether the 

reviewed audit organization’s internal quality control systems are adequate and provide 

reasonable assurance that applicable auditing standards, policies and procedures are met. We are 

required to include in each OIG semiannual report:

• The results of any peer review conducted by another Office of Inspector General during the

reporting period; or if no peer review was conducted within that reporting period, a statement

identifying the date of the last peer review conducted by another Office of Inspector General;

• A list of any outstanding recommendations from any peer review conducted by another

Office of Inspector General that have not been fully implemented, including a statement

describing the status of the implementation and why implementation is not complete; and

• A list of any peer reviews conducted by the Inspector General of another Office of the

Inspector General during the reporting period, including a list of any outstanding

recommendations made from any previous peer review (including any peer review conducted

before the reporting period) that remain outstanding or have not been fully implemented.

The required information follows: 

Most Recent Peer Review of the CFTC OIG Audit Function

The Federal Maritime Commission, Office of the Inspector General, reviewed the system of 

quality control for the CFTC OIG audit organization in effect for the year ending March 31, 

2019. In their opinion, the system of quality control for the audit organization of CFTC has been 

suitably designed and complied with to provide CFTC with reasonable assurance of performing 

and reporting in conformity with applicable professional standards in all material respects. CFTC 

OIG received the highest external peer review rating of “pass.” 
16

Most Recent Peer Review of the CFTC OIG Investigative Function

Investigative peer reviews are conducted under CIGIE peer review standards to evaluate

compliance with the requirements of the CIGIE Quality Standards for Investigations and the 

adequacy of internal safeguards and management procedures. Because it is a Designated Federal 

Entity Inspector General, the CFTC OIG investigative function is not required to undergo peer 

review. CFTC OIG last voluntarily submitted to a peer review of its investigative function in 

2013; the Federal Trade Commission, Office of Inspector General, reviewed the system of 

quality control for the CFTC OIG investigative function and concluded that the system of 

internal safeguards and management procedures for the CFTC OIG investigative function 

complied with the quality standards adopted by CIGIE, and provided a reasonable assurance of 

conforming with professional standards in the conduct of investigations. 

CFTC OIG completed a peer review of the audit function of the Denali Commission Office 

of Inspector General during this reporting period, as previously discussed. 

SUMMARY of FINAL REPORTS NOT MADE PUBLIC

No reports of investigation were published during this reporting period. Our 

investigations are generally summarized here. We did not publish our FISMA review and 

technical reports for FY2021 due to the sensitivity of the report. Our FISMA reports and related 

technical reports for this reporting period are generally summarized here. 

ADMINISTRATIVE ACTIVITIES

ESTABLISHMENT OF AUDIT PROTOCOLS

The CFTC Division of Administration (DA), CFTC Legal Division, and OIG have 

established a CFTC/OIG Audit Engagement Protocol to create a repeatable, efficient, and 

effective process for how the Commission and the OIG engage together in the OIG Audit 

Program. The protocol identifies the OIG Liaison role, who will coordinate all activities with the 

OIG Audit Program to ensure that there is a consistent process to support OIG Audit activities, 

including audit planning, audit kickoff, data access, audit reporting and recommendation follow 

up. 

MIGRATION TO THE CLOUD

During this reporting period, we migrated our data servers to a cloud environment. By 

doing so, we have been able to improve our disaster recovery processes and utilize enhanced 

security tools in protecting our data. 
17

UPDATE TO OIG WEBPAGES AND ESTABLISHMENT OF OIG

ALLEGATION INTAKE FORM

During the prior reporting period the OIG webpages received an update, with OIG reports 

organized into categories that should be easier to access. In addition, OIG for the first time 

established an online allegation intake form. This form and the webpage for its submission 

clearly instructed the webpage visitor how to report potential misconduct by CFTC employees 

and contractors, and clearly distinguished reporting potential misconduct involving market 

participants. We believe the new allegation intake webpage resulted in the receipt of fewer 

allegations that were necessary to refer to the CFTC Division of Enforcement. 

OIG TRANSITION TO A POST-PANDEMIC WORKPLACE

On March 18, 2020, CFTC announced a “temporary change” to its work schedule policy, 

essentially implementing a maximum telework policy.25 Since that time the majority of OIG staff 

has worked from home, and we have not detected any decline in productivity. Howover, we have 

worked on site as necessary, including travel necessary for an investigation, and travel to a 

conference (also attended by CFTC employees). The Inspector General has worked on site, full 

time, throughout the pandemic. 

CFTC began its Phase I return to work on October 4, 2021. Further reopening is 

apparently subject to collective bargaining. The OIGs are not subject to collective bargaining; 

moreover, IGs are authorized to “select, appoint, and employ” OIG staff “as may be necessary 

for carrying out the functions, powers, and duties of the [OIG].” 5 USC Appx. § 8G(b)(2). We 

interpret the IG Act to authorize separate telework policies for the OIG (that are compliant with 

applicable laws and regulations governing employment by the Agency). Currently we are 

following Agency policy. 

During this reporting period, the Inspector General worked on-site on a full-time basis, 

the Deputy Inspector General/Chief Counsel began working onsite one day a week, and the 

Assistant Inspector General for Auditing began working on-site two days a week. In addition, 

one OIG staff on detail during this period to the U.S. Treasury Department, working on 

establishing an interagency committee to address Household Resilience to Climate Change, 

adhered to a hybrid telework policy which included limited on-site presence, with no loss to 

productivity. Beginning in April 2022, the Deputy Inspector General/Chief Counsel will increase 

onsite work to two days a week. 

25 The Office of Personnel Management currently advises the nationwide status is “OPEN WITH MAXIMUM 

TELEWORK FLEXIBILITIES TO ALL CURRENT TELEWORK ELIGIBLE EMPLOYEES, PURSUANT TO 

DIRECTION OF AGENCY HEADS.” 
18

STRATEGIC PLAN for the OFFICE of INSPECTOR GENERAL

MISSION, VISION, AND VALUES

Mission

Our mission is to promote integrity, efficiency, and effectiveness by promoting for 

continuous improvement in our agencies' management and program operations of the CFTC. To

accomplish our mission, we: 

• Conduct independent and objective audits, reviews, and other types of engagements of the

CFTC programs and operations;

• Conduct independent and objective investigations of potential criminal, civil, and

administrative violations that could undermine the ability of the CFTC perform its mandated

mission;

• Conduct independent and objective reviews of regulatory economic laws under the

jurisdiction of the CFTC programs and operations;

• Identify maturity challenges in IT programs and make attainable recommendations to further

mature them;

• Prevent and detect fraud, waste and abuse in CFTC programs and operations;

• Communicate timely and efficiently with CFTC programs and operations stakeholders by

providing quick responses with value added results; and

• Keep agency chairperson, commissioners and Congress fully and currently informed of

significant issues and developments.

Vision Statement 

The OIG is an independent, professional organization that contributes to the success of 

the CFTC through audits, investigations, economic analysis, and other activities, and thereby acts 

as a champion for positive change in the CFTC’s programs and operations. 

Values Statement 

We most value integrity, accuracy, accountability, effective communication, and efficient 

operations. These values are fundamental to the accomplishment of our mission and our daily 

operations. 
19

STRATEGIC GOAL 1: EVALUATE THE ECONOMIC IMPACT OF CFTC REGULATORY

ACTIONS THROUGH LEGAL ANALYSIS, WHITE PAPERS, INSPECTIONS AND

EVALUATIONS, MANAGEMENT REVIEWS, AND OTHER PRODUCTS

Office of Legal and Economic Research (OLER): Legislative, Economic, and Regulatory 

Review Agenda

OLER plans to continue to identify and explore areas where OIG legal and/or economic 

review might aid the CFTC in improving the economy and efficiency of its programs. OLER 

products may include white papers, management reviews, legal opinion, and other products.26

These efforts are particularly important since the CFTC is an economic regulatory agency. We 

will continue to seek staff that possesses exceptional expertise in relevant law and economics.

STRATEGIC GOAL 2: ADDRESS HIGH IMPACT ISSUES IN CFTC ADMINISTRATIVE

AND MISSION PERFORMANCE

Office of Audits: Audit and Review Agenda

A. Introduction

The primary objectives of OIG’s audit and review agenda are to promote long-term 

efficiency and effectiveness in the administration and operation of the Commission and to 

protect against fraud and abuse. The agenda and priorities for OIG are determined based on the 

following factors: 

• Adequacy of internal control systems as indicated by vulnerability assessments and

internal control reviews recommended by OMB Circular A-123;

• Changes in the program conditions or particular vulnerability of the organization,

program, activity, or function to problems or deficiencies;

• Current and potential dollar magnitude and likely benefits of a review on the efficiency or

effectiveness of CFTC programs and operations;

• Management priorities and improvements that may be possible;

• Results of audits of CFTC programs and operations by other federal agencies; and

• Availability of audit resources and the potential opportunity costs to the agency.

B. Annual Audits. The following required audits are performed on an annual basis.

26 As stated in the Inspector General Act, it is our duty and responsibility to continually review existing and 

proposed legislation and regulations relating to CFTC programs and operations, and to make recommendations

concerning the impact of such legislation or regulations on the economy and efficiency in the administration of such 

programs. 5 U.S.C. App. § 4(a)(2) (made applicable to the designated federal entity IGs at 5 U.S.C. App. §8G(g)). 
Audit of CFTC Financial Statements

In FY 2002, Congress passed the Accountability of Tax Dollars Act.27 The Act requires 

the CFTC, along with numerous other Federal entities, to have its financial statements audited 

annually. To this end, OIG has engaged a contractor to provide the audit effort required to enable 

the contractor to render an opinion on the Agency’s financial statements for each fiscal year in 

accordance with GAGAS and OMB Bulletin 19-01. 

Audit of the CFTC Customer Protection Fund 

Section 748 of the Dodd-Frank Act28 requires the Agency to submit to Congress a yearly 

report on the Commission’s whistleblower award program that includes a complete set of audited 

financial statements, including a balance sheet, income statement, and cash flow analysis. To this 

end, OIG has engaged a contractor to perform the audit. 

C. Annual Reviews. OIG will perform the following reviews and evaluations annually.

Inspector General’s Assessment of the CFTC’s Most Serious Management and Performance 

Challenges

The Reports Consolidation Act of 200029 requires the Inspector General to summarize the 

most serious management and performance challenges facing the CFTC and to assess the 

Agency’s progress in addressing those challenges.

Review of Compliance with the Federal Managers' Financial Integrity Act, FMFIA30

In support of OMB Circular A-123, the Inspector General will evaluate, provide technical 

assistance and advise the Agency head as to whether the Agency's review and evaluation process 

was conducted in accordance with the circular's requirements. 

Evaluation of Compliance with Federal Information Security Management Act, FISMA

The Federal Information Security Management Act31 requires the Inspector General or 

his designee to perform annual independent evaluations of the information security program and 

practices of the Agency. This compliance may also be performed through an audit. 

D. Other Audits, Reviews, and Audit Projects; Data Analytics

OIG will focus the balance of its resources on the review of CFTC program and 

management operations (giving priority to activities relating to the most serious management 

challenges facing the CFTC), and compliance with Congressional mandates. Toward that end, 

27 See fn. 13. 28 See fn. 11. 29 P.L. 106-531, 114 Stat. 2537 (2000). 30 P.L. 97-255, 96 Stat. 814 (1982). 31 See fn. 15. 

20
OIG intends to increase the use of data analytics to enable audit operations. Data Analytics 

within the Office of Inspector General supports data services and analyses, and provides the 

competency to deliver short-turnaround projects that produce quick, valuable successes. Finally, 

OIG will stand ready to respond to issues and requests as they are received from Congress, the 

Agency, members of the public, or any other source. 

21

STRATEGIC GOAL 3: ADDRESS EMPLOYEE AND CONTRACTOR MISCONDUCT

PROMPTLY, THOROUGHLY, AND RELIABLY

As a chain is only as strong as its weakest link, CFTC likewise depends on each and 

every employee and contractor to perform with competence, and to refrain from misconduct. 

CFTC OIG considers and investigates every credible allegation to ensure that CFTC employees 

and contractors uphold the public trust and perform their work with integrity and competence. 

Office of Investigations: Investigative Agenda 

The Inspector General Act of 1978, as amended, provides that the Inspector General may 

receive and investigate complaints or information from the Commission's employees concerning 

the possible existence of an activity constituting a violation of law, rules or regulations; or 

mismanagement, gross waste of funds, or abuse of authority; or a substantial and specific danger 

to the public health and safety.

CFTC is an independent regulator with a mission that does not involve grants, substantial 

contracts, or other benefits to administer, and is therefore less likely than some agencies to 

generate a substantial investigative workload. Historically, OIG has conducted only a reactive 

investigative program, chiefly relying on unsolicited complaints as the source of investigative 

leads. Allegations and complaints are received primarily from CFTC staff and management, 

CFTC ethics officials, the general public, and Congress. We also receive referrals from other law 

enforcement agencies. Should further experience show areas at CFTC on which to focus 

proactively, we will consider establishing an investigative agenda. To ensure that employee 

complaints easily reach OIG, we maintain a 24-hour hotline. The hotline phone number is (202) 

418-5510. We also maintain an email address for complaints, OIGComplaint@cftc.gov.

STRATEGIC GOAL 4: ADDRESS MINOR OPERATIONAL AND MANAGEMENT ISSUES

PROMPTLY THROUGH THE USE OF INSPECTIONS & EVALUATIONS (I&E) 

I&E provides the Inspector General with an alternative method to conduct independent, 

credible, and thorough reviews of CFTC’s programs and operations to prevent waste, fraud and 

abuse. Through and I&E, OIG can quickly analyze CFTC concerns or issues that need immediate 

attention by using a variety of review methods and evaluation techniques. The I&E reports 

provide CFTC management with findings and practical recommendations that will assist in 

enhancing program operations, efficiency, effectiveness, and compliance with applicable policies 

and procedures. As stated previously, OIG conducts inspections, evaluations, and other covered 

products in accordance with the Quality Standards for Inspection and Evaluation issued by the 

CIGIE. 
RESOURCES REQUIRED

OIG estimates that approximately four staff years of effort will be devoted over each of 

the next five years to the annual audit, the annual review, and the annual evaluation described 

above. OIG estimates 12 staff years of effort will be necessary over each of the next five years to 

complete the audit, investigative, I&E, and legal and economic review functions. OIG estimates 

four staff years for management, administrative, and outreach efforts. Our estimated resource 

needs necessitate the growth of this office to 20 FTE. 

Because OIG resources can be diverted at any time in order to address current issues or 

allegations, completed timely in order to be of assistance to the Agency or Congress, it is not 

possible to forecast with complete accuracy how resources will be utilized from year to year. 

22

CONTACTING the OFFICE of the INSPECTOR GENERAL 

OIG is located at 1155 21st Street, N.W., Washington, D.C. 20581. Regular business 

hours are between 8:30 AM and 5:00 PM, Monday through Friday, except federal holidays. Our

general telephone number is (202)418-5110. Our facsimile number is (202)418-5522. Our email 

address for general questions and discussion is OIG@cftc.gov. 

Our email for complaints is OIGComplaint@cftc.gov. The hotline phone number is 

(202)418-5510. OIG’s web page, with a link to the OIG online complaint form, is located at

http://www.cftc.gov/About/OfficeoftheInspectorGeneral/index.htm.
23

APPENDICES 

Appendix 1 – Reports Issued with Questioned Costs

October 1, 2021 – March 31, 2022 

Dollar Value

Thousands

Number Questioned Unsupported

A. For which no management decision has

been made by the commencement of the

reporting period 0 0 0

B. Which were issued during the reporting

period 0 0 0

Subtotals (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
24

Appendix 2 – Reports Issued with Recommendations That Funds Be

Put to Better Use

October 1, 2021 – March 31, 2022

Dollar Value

Number 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

Subtotals (A + B) 0 0

C. 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

( 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
25

Appendix 3 - Index of IG Act Reporting Requirements

Section 4(a)(2) Review of legislation and regulations...............................................14

Section 5(a)(1) Significant problems, abuses and deficiencies.....................................6

Section 5(a)(2) Recommendations with respect to significant problems............................6

Section 5(a)(3) Significant recommendations that have not been completed...................8

Section 5(a)(4) Matters referred to prosecutorial authorities....................................13

Section 5(a)(5) Summary of instances where information was refused ..........................5

Section 5(a)(6) Completed audit reports...............................................................6

Section 5(a)(7) Significant audit reports..............................................................6

Section 5(a)(8) Statistical Table—Questioned Costs.............................................23

Section 5(a)(9) Statistical Table—Funds Recommended for Better Use ......................24

Section 5(a)(10) Audit reports lacking management decision .....................................8

Section 5(a)(10) Audit reports without Commission response after 60 days....................8

Section 5(a)(10) Audit reports for which there are any outstanding unimplemented 

recommendations, including the aggregate potential cost savings ...........8

Section 5(a)(11) Significant revised management decisions .......................................8

Section 5(a)(12) Significant management decisions where the IG disagrees....................8

Section 5(a)(13) Information described under § 804(b) of the Federal Financial 

Management Improvement Act of 1996 .....................................N/A 

Section 5(a)(14)-(16) Peer Review information ........................................................15

Section 5(a)(17) Statistical tables for investigations.............................................13

Section 5(a)(18) Description of metrics used to develop the statistical tables for 

investigations......................................................................13

Section 5(a)(19) Report on each investigation involving a senior Government employee 

where allegations of misconduct were substantiated .........................13

Section 5(a)(20) Whistleblower retaliation findings ..............................................13

Section 5(a)(21) Attempts to interfere with OIG independence .................................5

Section 5(a)(22) Summary of final reports not made public.....................................16

Section 6(b)(2) Summary of reports to Chairman where assistance was refused.............5