i 

MESSAGE FROM THE ACTING INSPECTOR GENERAL

On behalf of the Commodity Futures Trading Commission (CFTC) Office of Inspector General (OIG), 

I am pleased to present this Semiannual Report to the Congress covering the six-month period ending 

March 31, 2023. Our work reflects the legislative mandate of the Inspector General Act, which is to 

prevent and detect fraud, waste, and abuse through the conduct of audits, evaluations, and 

investigations relating to CFTC programs and operations. My appointment as Acting Inspector 

General began May 17, 2023. I am honored for the opportunity to lead the audit, investigative, legal 

and support staff who do this important oversight work, as well as the contractors who provide 

important assistance. I want to summarize the highlights of this report. 

During the reporting period our Office completed three audits, and began or continued work on five 

audits, including one audit in collaboration with the Council of Inspectors General on Financial 

Oversight. There was one open recommendation at the close of the reporting period; this 

recommendation has been pending for more than six months due to the complexity of the 

recommendation. We continue to work closely with the agency to close out recommendations as 

corrective actions are implemented. We began the reporting period with six investigations pending, 

opened one additional investigation, and closed three investigations, ending the reporting period with 

four open investigations. We received 31 allegations during the reporting period, and four were under 

development at the close of the reporting period. The remaining 27 allegations were referred to the 

CFTC Division of Enforcement (22), closed due to inadequate evidence (4), and opened as the new 

investigation (1). Four inspections and evaluations (I&E) and two white papers were pending 

throughout the reporting period, due to staff departures. More information may be found in the audits, 

investigations, inspection and evaluations, and legal & economic review sections of our Semiannual 

Report. 

CFTC OIG remains committed to helping the agency to maximize the integrity, efficiency, and 

effectiveness of CFTC programs and operations; our audits, investigations, and other activities 

demonstrate our ongoing commitment. Further, our success will not be possible without the 

collaborative efforts between the OIG, CFTC, and the Congress to promote effective stewardship of 

agency programs and operations. I look forward to establishing effective working relationships with 

the Commission and with Congress based on mutual trust and rooted in our commitment to our 

respective missions. I thank all parties for their dedication, and I look forward to leading the CFTC 

OIG as it embarks on a new chapter. 

 

 Dr. Brett M. Baker

 Acting Inspector General 
ii

SEMIANNUAL REPORT 

OF THE U.S. COMMODITY FUTURES TRADING COMMISSION

OFFICE OF THE INSPECTOR GENERAL

October 1, 2022 – March 31, 2023 

TABLE OF CONTENTS

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

CFTC PROGRAMS and OPERATIONS .................................................................................. 2

CFTC OIG RESPONSIBILITIES, RESOURCES, ORGANIZATION, and 

INDEPENDENCE......................................................................................................................... 3

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 2022 Annual Financial Report ........................................................ 6

Audit of the CFTC’s FY 2022 Customer Protection Fund ..................................................... 6

Federal Information Security Management Act (FISMA) Review: FY 2022 ......................... 6

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

Audit of the CFTC’s FY 2023 Annual Financial Report ........................................................ 6

Audit of the CFTC’s FY 2023 Customer Protection Fund ..................................................... 6

Federal Information Security Management Act (FISMA) Review: FY 2023 ......................... 7

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

Climate-Related Financial Risk .............................................................................................. 7

Follow-up Review: FY 2022 Compliance with the PIIA Act of 2019 – This management 

letter evaluation follows up on our previous review’s 2 recommendations and independently 

assesses payment risk. ............................................................................................................. 7

AUDIT REPORTS AND REVIEWS OVER SIX MONTHS OLD; REQUIRED STATEMENTS .................... 7

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

Table 2: Detail of Unimplemented Recommendations ...................................................... 8

INSPECTIONS & EVALUATIONS ........................................................................................... 8

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

• CFTC Whistleblower Office’s Confidentiality Protections ............................................ 9

• CFTC Policies and Procedures Concerning Capturing, Retaining and Accessing Cell 

Phone Data, Including Text Messages, Location, and Other Information / Data .................. 9

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

Operations and Space Planning ............................................................................................. 9

• OIG Inspection and Evaluation of the CFTC’s Disaster Preparedness ......................... 9

INVESTIGATIVE OPERATIONS ........................................................................................... 10

INVESTIGATIONS ........................................................................................................................ 10
iii

ALLEGATIONS ............................................................................................................................ 10

ONGOING INVESTIGATIVE MATTERS AND REQUIRED DISCLOSURES .......................................... 10

Table 3: Investigative Statistics for Referrals and Whistleblower Retaliation ................ 11

LEGAL & ECONOMIC RESEARCH ..................................................................................... 11

ONGOING LEGAL & ECONOMIC RESEARCH PROJECTS ............................................................... 11

LEGISLATIVE & REGULATORY PROJECTS ................................................................... 11

PEER REVIEWS ........................................................................................................................ 12

Most Recent Peer Review of the CFTC OIG Audit Function ............................................... 12

Most Recent Peer Review of the CFTC OIG Investigative Function.................................... 13

Peer Reviews completed by CFTC OIG during the reporting period .................................. 13

SUMMARY of FINAL REPORTS NOT MADE PUBLIC .................................................... 13

STRATEGIC PLAN for the OFFICE of INSPECTOR GENERAL ..................................... 13

MISSION, VISION, AND VALUES ................................................................................................. 13

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

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

REVIEWS, AND OTHER PRODUCTS .............................................................................................. 14

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

Review Agenda ...................................................................................................................... 14

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

PERFORMANCE ........................................................................................................................... 15

Office of Audits: Audit and Review Agenda .......................................................................... 15

STRATEGIC GOAL 3: ADDRESS EMPLOYEE AND CONTRACTOR MISCONDUCT PROMPTLY,

THOROUGHLY, AND RELIABLY .................................................................................................. 16

Office of Investigations: Investigative Agenda ..................................................................... 17

STRATEGIC GOAL 4: ADDRESS MINOR OPERATIONAL AND MANAGEMENT ISSUES PROMPTLY 

THROUGH THE USE OF INSPECTIONS & EVALUATIONS (I&E) ..................................................... 17

CONTACTING the OFFICE of the INSPECTOR GENERAL ............................................. 18

APPENDICES ............................................................................................................................. 19

Appendix 1 – Reports Issued with Questioned Costs .............................................................. 19

Appendix 2 – Reports Issued with Recommendations That Funds Be Put to Better Use .... 20

Appendix 3 - Index of IG Act Reporting Requirements ......................................................... 21
1

EXECUTIVE SUMMARY

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.1 It summarizes OIG’s activities and accomplishments for the period October 1, 2022, 

through March 31, 2023. During this period: 

• The Office of Audits completed three audits in compliance with financial and information 

security requirements, with no significant issues noted. We continued work on two

financial audits, one cybersecurity audit, one payment compliance follow-up review, and

one audit in collaboration with CIGFO. 

• We began the reporting period with six investigations pending, opened one additional 

investigation, and closed three investigations. We ended the reporting period with four 

open investigations. 

• We began the reporting period with four pending Inspections and Evaluations (I&E). In 

the prior reporting period we issued one of the four in management draft form to the 

Commission, and management comments were pending with OIG at the close of the prior 

reporting period. During this reporting period we clarified the management draft, reissued 

it to management, and received a second round of comments, which were pending at the 

close of this reporting period. Staff departures in 2022 have impeded progress on I&Es, 

and we finished the reporting period with four pending I&E’s. 

• The Office of Legal and Economic Research suspended work due to the departure of two 

attorneys in 2022. We continued recruitment efforts during this reporting period. In 

order to better assure our independence, we have entered into an agreement with the 

Office of Personnel Management HR Solutions to assist our recruitment. During this 

reporting period, we brought in a consultant: Professor Craig Pirrong of the C.T. Bauer 

college of Business, University of Houston. Professor Pirrong brings a wealth of 

information and experience on the economics of commodity markets, the relation 

between market fundamentals and commodity price dynamics, and the implications of 

this relation for the pricing of commodity derivatives. 

 

1 P.L. 95-452, 92 Stat. 1101 (1978). 
2

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.2

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

derivatives markets through sound regulation.”3 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 

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

oversight of the swaps marketplace.4 

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.5 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):6

• Division of Clearing and Risk (DCR)

• Division of Enforcement, including the Whistleblower Office (DOE)

• Division of Market Oversight (DMO)

• Market Participants Division (MPD)

• Division of Data (DOD) 

• Office of the General Counsel (OGC) 

• Division of Administration (DA)

• Office of the Chief Economist (OCE)

• Office of International Affairs (OIA)

• Office of Public Affairs (OPA)

• Office of Technology Innovation (OTI) 

• Office of Legislative and Intergovernmental Affairs (OLIA)

• Office of Minority and Women Inclusion (OMWI)

 

2 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, 2023. 

3 Id., page 3. 

4 Id., page 4.

5 7 U.S.C. § 2(a)(2). 

6 https://www.cftc.gov/About/CFTCOrganization/index.htm. 
3

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 1978.7 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; 

• 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.8 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/InspectorGeneral. 

 

7 The Inspector General Act Amendments of 1988, P.L. 100-504, 102 Stat. 2515 (1988). 8 5 U.S.C. §§ 415(c) and 415(e).
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 eleven 

FTEs. However, in 2022 two attorneys departed, severely hampering our ability to complete 

investigations, inspections & evaluations, and white papers, some already in progress. We are in 

the process of backfilling these positions. During this reporting period, we brought in a 

consultant to assist with economic analysis. Our organizational chart follows: 
5

OIG INDEPENDENCE

OIG operates independently of the Agency. Our investigations have been pursued 

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

evaluations, and reviews without intentional, substantive interference whenever it has perceived 

the opportunity to recommend improvement to agency administration and to futures regulation 

efforts, again without regard to the party affiliation of any Chairman or Commissioner.9 

REQUIRED STATEMENT REGARDING INFORMATION ACCESS AND ASSISTANCE

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

information or assistance unreasonably refused or not provided;10 however, we took steps to 

increase our independence through the establishment of an interagency agreement with Office of 

Personnel Management HR Solutions in order to independently develop positions as we backfill 

two attorneys who departed during the past year and establish two additional attorney positions. 

In addition, we are continuing to assert the authority to designate an amount of the OIG earmark 

as two-year funds, to expire on September 30, 2024, in accordance with the CFTC’s current 

appropriation, which specifies “of which not less than $20,000,000 shall remain available until 

September 30, 2024.” 

Type of Interference Number Explanation

Budget constraints 0 N/A

Resistance to oversight 0 N/A

Delayed information access 0 N/A

Other (Intimidation) 0 N/A

 

9 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). 10 5 U.S.C. §406(c)(2), §405(a)(15)(B).
6

AUDIT OPERATIONS 

COMPLETED AUDITS, AUDIT REVIEWS, AND OTHER AUDIT

PROJECTS

Financial 

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

mandated audit11 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 audit12 is to render an opinion on customer protection fund financial 

statements in accordance with GAGAS. 

Information Technology Management and Security 

Federal Information Security Management Act (FISMA) Review: FY 2022 – The objective of 

this review is to evaluate CFTC’s information security program and practices as required by 

FISMA.

13 These years audit focused on 20 core controls and the results are not published.

ONGOING AUDITS, AUDIT REVIEWS, AND OTHER AUDIT PROJECTS

Financial 

Audit of the CFTC’s FY 2023 Annual Financial Report – The objective of this Congressionally 

mandated audit14 is to render an opinion on the agency financial report (financial statements) in 

accordance with GAGAS. 

Audit of the CFTC’s FY 2023 Customer Protection Fund (CPF) – The objective of this 

Congressionally mandated audit15 is to render an opinion on customer protection fund financial 

statements in accordance with GAGAS. 

 

11 The Accountability of Tax Dollars Act, P.L. 107-289, 116 Stat. 2049 (2002). 12 P.L. 111-203, § 748, 124 Stat. 1739 (2010). 13 Federal Information Security Management Act of 2002 (FISMA), P.L. 107-347 (Title III), 116 Stat. 2946 (2002). 14 See fn.12. 15 See fn.13. 
7

Information Technology Management and Security 

Federal Information Security Management Act (FISMA) Review: FY 2023 – The objective of 

this review is to evaluate CFTC’s information security program and practices as required by 

FISMA.

16 This year’s audit focused on 40 core controls and was performed with support from 

cybersecurity subject matter experts.

Other

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) 14030,17 and whether 

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

Follow-up Review: FY 2022 Compliance with the PIIA Act of 2019 – This management letter 

evaluation follows up on our previous review’s 2 recommendations and independently assesses 

payment risk. 

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.

 

16 See fn.15. 17 Executive Order (EO) 14030, Climate-Related Financial Risk, 86 F.R. 27967 (May 20, 2021).
8

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

2021 1 1 0 0

Totals 1 1 0 0

Table 2: Detail of Unimplemented Recommendations 

Fiscal 

Year

Audit Report Unimplemented Recommendations

2021 Federal Information Security 

Management Act Review: FY 2020*

One recommendation to enhance 

CFTC’s privacy program.

* In FY20, the privacy program determined the Commission’s existing privacy policies and 

procedures were out-of-date. In FY21, the program commenced a comprehensive review of 

federal privacy laws and policies. In FY22, the privacy program began to work with 

stakeholders across the Commission to draft an enterprise privacy policy that aligns with the 

requirements in federal privacy laws and policies. In FY23, the privacy program planned to 

finalize the draft enterprise privacy program policy and work with the CFTC Policy Governance 

Board (PGB) to facilitate the intra-agency review of the proposed policy. The development of 

procedures is ongoing. The Acting Chief Privacy Officer continues to work with the Senior 

Agency Official for Privacy to review the privacy program’s staffing and resourcing and to 

develop a plan to address the current resource constraints.

INSPECTIONS & EVALUATIONS

We began the reporting period with four I&E in process. In 2022, two attorneys assigned 

to assist I&E departed for the private sector, which severely impacted our timeline for 

completion of projects. During this reporting period we evaluated comments received in 

response to a management draft for one I&E, reissued the I&E with an amended management 

draft, and received managements comments on the second draft. There was no change of status 

to the other three I&Es. All four I&E were ongoing at the close of the reporting period. 
9

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; 

• CFTC Policies and Procedures Concerning Capturing, Retaining and Accessing Cell 

Phone Data, Including Text Messages, Location, and Other Information / Data (2021-IE3) – 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. The March 31, 

2022, Management Draft contained six proposed recommendations, and during the prior 

reporting period we received the management response. During this reporting period we 

clarified the management draft and recommendations, and reissued it to management on 

December 22, 2022. We received a second management response on February 23, 2023, 

and this second response was pending with our office at the close of this reporting period. 

• 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 
10

and capabilities. This I&E is a component of a broader effort by CIGFO18 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. 

INVESTIGATIVE OPERATIONS

INVESTIGATIONS

We began the reporting period with six investigations pending, opened one additional 

investigation, and closed three investigations. 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. We ended the 

reporting period with four open investigations. 

ALLEGATIONS

We began the reporting period with no allegations pending and received 31 allegations during 

the reporting period through the OIG email hotline (26), the OIG online complaint form (3), and 

the OIG phone hotline (2). We closed 27 allegations as follows: 

o Referred 22 allegations to Division of Enforcement, including the Whistleblower Office 

within the Division of Enforcement (or advised the complainant to reach out to the 

Division of Enforcement or Whistleblower Office) 

o Closed 4 allegations due to inadequate evidence19

o Closed 1 allegation with a new investigation opened 

Four 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 four ongoing investigations and four open 

allegations under consideration. 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. 

 

18 Council of Inspectors General on Financial Oversight Guidance in Preparing for and Managing Crises, June 

2022, CIGFO-2022-1. 19 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. 
11

Table 3: Investigative Statistics for Referrals and Whistleblower Retaliation

October 1, 2022 – March 31, 202320

A. Completed investigations 3

B. Referrals to prosecuting authorities for criminal prosecution 0 

C. Indictments from prior referrals 0

D. Whistleblower retaliation findings 0

These statistics were generated through an examination of 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. 

LEGAL & ECONOMIC RESEARCH

ONGOING LEGAL & ECONOMIC RESEARCH PROJECTS

In 2022, the two attorneys with responsibility for ongoing our Office of Legal and Economic 

Research projects departed CFTC OIG for the private sector. The two projects pending at the 

close of the last reporting period, White Paper Evaluating CFTC Experience with the 

Administrative Procedures Act, and White Paper Evaluating CFTC Experience with Digital 

Assets, have been suspended. 

LEGISLATIVE & REGULATORY PROJECTS

1. Introduction and Summary 

As specified in Section 4(a)(2) of the Inspector General Act of 1978,21 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. 

 

20 We compiled these statistics from a review of our digital files. 21 Codified at 5 USC § 404(a)(2) (made applicable to CFTC OIG at 5 USC § 415(g)).
12

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. 

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.” 
13

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. 

Peer Reviews completed by CFTC OIG during the reporting period

CFTC OIG completed no peer reviews of other OIGs during this reporting period. There are 

no open recommendations from prior peer reviews conducted by CFTC OIG. 

SUMMARY of FINAL REPORTS NOT MADE PUBLIC

 All reports issued during this reporting period were published as required by law. The 

OIG report titled Federal Information Security Management Act (FISMA) Review: FY 2022 was 

not published due to information technology sensitivities. In addition, reports of investigation 

generally are not published unless the information has become public, or the matter has received 

widespread attention. 

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;
14

• 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. 

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.22

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.

 

22 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. § 404(a)(2) (made applicable to the designated federal entity IGs at 5 U.S.C. § 415(g)). 
15

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. 

Audit of CFTC Financial Statements

In FY 2002, Congress passed the Accountability of Tax Dollars Act.23 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 Act24 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. 

 

23 See fn. 13. 24 See fn. 14. 
16

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 200025 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, FMFIA26

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 Act27 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, 

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. 

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. 

 

25 P.L. 106-531, 114 Stat. 2537 (2000). 26 P.L. 97-255, 96 Stat. 814 (1982). 27 See fn. 15. 
17

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. You 

may choose to remain anonymous.

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 an additional 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 an additional four staff years for management, administrative, and 

outreach efforts. Our estimated resource needs necessitate the growth of this office to 20 FTE

roughly over the next four years. 

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. 
18

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. You may choose to remain 

anonymous.
19

APPENDICES 

Appendix 1 – Reports Issued with Questioned Costs

October 1, 2022 – March 31, 2023 

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
20

Appendix 2 – Reports Issued with Recommendations That Funds Be 

Put to Better Use

October 1, 2022 – March 31, 2023

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
21

Appendix 3 - Index of IG Act Reporting Requirements 

Section 4(a)(2) Review of legislation and regulations...............................................11

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...................7

Section 5(a)(4) Matters referred to prosecutorial authorities....................................11

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.............................................19

Section 5(a)(9) Statistical Table—Funds Recommended for Better Use ......................20

Section 5(a)(10) Audit reports lacking management decision .....................................7

Section 5(a)(10) Audit reports without Commission response after 60 days....................7

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

recommendations, including the aggregate potential cost savings ...........7

Section 5(a)(11) Significant revised management decisions ....................................... 7 

Section 5(a)(12) Significant management decisions where the IG disagrees....................7

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 ........................................................12

Section 5(a)(17) Statistical tables for investigations.............................................11

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

investigations......................................................................11

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

where allegations of misconduct were substantiated .........................10

Section 5(a)(20) Whistleblower retaliation findings ..............................................10

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

Section 5(a)(22) Summary of final reports not made public.....................................13

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