oversight

Semi-annual report: Apr-Sep 2011

Published by the Equal Employment Opportunity Commission, Office of Inspector General on 2011-11-01.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

U.S. Equal Employment
Opportunity Commission



 Office of Inspector General




    Semiannual Report
      to Congress
 April 1, 2011 to September 30, 2011
                 Equal Employment Opportunity Commission




                           OIG VISION

    Agents igniting change and fostering accountability,
        effectiveness, and efficiency in government




                         OIG MISSION

The OIG’s mission is to detect and prevent waste, fraud, and
abuse and to promote economy, efficiency, and effectiveness
           in Agency programs and operations.




            OIG Semiannual Report to Congress April 1, 2011 – September 30, 2011
                          Equal Employment Opportunity Commission



CONTENTS


A Message from the Inspector General                                                1

Executive Summary                                                                   2

Introduction                                                                        4

The Audit and Evaluation Program                                                    7
Completed Projects
New and Ongoing Audit and Evaluation Projects
Audit Follow-Up

The Investigation Program                                                            18
Investigative Inquiries
Completed Investigations
Ongoing Investigative Activities

Other OIG Program Activities                                                         21

Appendixes                                                                          22
Appendix 1.   Final Office of Inspector General Audit and Evaluation Reports
Appendix 2.   Index of Reporting Requirements
Appendix 3.   Single Audit Act Reports




                    OIG Semiannual Report to Congress April 1, 2011 – September 30, 2011
                        A MESSAGE FROM
                     THE INSPECTOR GENERAL



I  n accordance with the Inspector General Act of 1978, as amended, I herewith submit the
   semiannual report for the period April 1, 2011, through September 30, 2011, which
   summarizes the major activities of our office for the reporting period. Section 5 of the
   Inspector General Act requires the Chair to transmit this report to the appropriate
committees or subcommittees of Congress within 30 days of its receipt.

In May 2011, I was appointed the third Inspector General for the U.S. Equal Employment
Opportunity Commission (EEOC) by the Honorable Jacqueline A. Berrien, Chair of the EEOC.
I am honored by her appointment, and I have accepted it with an unswerving commitment to
OIG’s mission to detect and prevent waste, fraud and abuse, and to promote economy, efficiency
and effectiveness in EEOC programs and operations.

I am thankful for a team of professionals with whom I serve that consistently manage to meet the
challenges of the OIG’s mission undergirded by a passion for public service and an unrelenting
commitment to pursuing and maintaining the highest professional standards. Unlike any other
era in modern times, public servants, and particularly those of us in the IG community, will be
called upon to muster the resolve to identify the best opportunities to maximize the efficiency
and effectiveness of Federal operations, while providing the American taxpayer with greater
value for their investment. I am convinced that the staff of the OIG is well prepared and highly
motivated to meet the challenges which lie ahead.

The Office of Inspector General experienced a productive six months. Although lacking essential
staff, the OIG completed six investigations, received and processed 698 investigative inquiries,
and conducted various audit and evaluation activities. Included among the audit and evaluation
projects are two management advisories. These advisories represent the OIG’s efforts to
implement its new approach of conducting limited-scope reviews that maximize the use of its
human capital to provide Agency management with information and recommendations in a
timely and useful format.

I look forward to working with the Berrien administration, the Commissioners, and the EEOC
community at-large as we advance the EEOC’s efforts to improve its efficiency and
effectiveness in carrying out its mission to promote equality of opportunity in the workplace and
enforcing Federal laws prohibiting employment discrimination.



Milton A. Mayo Jr.
Inspector General


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                     OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
EXECUTIVE SUMMARY

This semiannual report is issued by the Equal Employment Opportunity Commission’s
(EEOC’s) Office of Inspector General (OIG) pursuant to the Inspector General Act of
1978, as amended. It summarizes the OIG’s activities and accomplishments for the period
of April 1, 2011, through September 30, 2011.

During the reporting period the OIG issued two management advisories, closed six
investigative matters, and received 698 inquiries, of which 282 were charge-processing
issues, 245 were Title VII complaints, and 171 were other investigative allegations.

The OIG’s completed, newly initiated, and ongoing audit, evaluation, and investigative
projects include these:

     The OIG contracted with Harper, Rains, Knight & Company, P.A., to perform the
      2011 financial statement audit of EEOC as required by the Accountability of Tax
      Dollars Act of 2002.
     The OIG contracted with Clifton Gunderson, LLP, to perform an independent
      evaluation of EEOC’s information security program and of selected EEOC
      systems for compliance with the Federal Information Security Management Act of
      2002 (FISMA) and the Fiscal Year 2011 Inspector General Federal Information
      Security Management Act reporting requirements issued by the Department of
      Homeland Security.
     In August the OIG initiated planning for a review of the Agency’s audit follow-up
      process. The objective of the review is to assess the condition of the program and
      to determine whether there are opportunities for improvement. The OIG will
      commence the project with an entrance conference during the first quarter of fiscal
      year (FY) 2012 and will issue a draft and final report during the third quarter of
      FY 2012.

     The OIG is conducting its annual independent assessment of the Agency’s
      compliance with the Federal Manager’s Financial Integrity Act. We will
      determine whether the Agency’s management control process was conducted in
      accordance with OMB standards. The OIG will issue its findings to the Chair
      prior to the Agency’s reporting deadline of November 15, 2011 for inclusion in the
      FY 2011 Performance and Accountability Report.

     The OIG will issue its findings to the chair of the Agency prior to the Agency’s
      reporting deadline for its FY 2011 Performance and Accountability Report, which
      is November 15, 2011.



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                    OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
     The OIG issued two management advisories during the reporting period. On July
      15, 2011, the OIG issued a management advisory on the status of EEOC’s Open
      Government activities, and on September 30, 2011, the OIG issued a management
      advisory on EEOC’s potential for infrastructure (real estate) cost savings through
      the use of frequent telework

     The OIG completed investigations involving an array of allegations including
      fraud, conflict of interest, inappropriate use of agency resources, erroneous
      position appointment, unauthorized outside employment, and misuse of position.

     There are ongoing investigations in several field offices involving prohibited
      personnel practices, ethics violations, conflicts of interest, fraud, mismanagement,
      falsification of government records, impersonation of a Federal official, theft of
      government property, and threats against the Agency.




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                    OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
INTRODUCTION
The Equal Employment Opportunity Commission

The Equal Employment Opportunity Commission (EEOC) is the Federal agency
responsible for enforcement of Title VII of the Civil Rights Act of 1964, as amended; the
Equal Pay Act of 1963; the Age Discrimination in Employment Act of 1967; Section 501
of the Rehabilitation Act of 1973 (in the Federal sector only); Title I of the Americans
with Disabilities Act of 1990 and Americans with Disabilities Act Amendments Act of
2008; the Civil Rights Act of 1991; the Lilly Ledbetter Fair Pay Act of 2009; and the
Genetic Information Nondiscrimination Act of 2008 (P.L. 110-233 Stat 881), also
referred to as GINA. These statutes prohibit employment discrimination based on race,
sex, color, religion, national origin, age, disability, or genetic information.

EEOC is also responsible for carrying out Executive Order 12067, which promotes
coordination and minimizes conflict and duplication among Federal agencies that
administer statutes or regulations involving employment discrimination.

EEOC is a bipartisan commission composed of five presidentially appointed members,
including a chair, a Vice Chair, and three commissioners. The Chair is responsible for the
administration and implementation of policy and for the financial management and
organizational development of the Commission. The Vice Chair and the commissioners
equally participate in the development and approval of the policies of the EEOC, issue
charges of discrimination where appropriate, and authorize the filing of lawsuits.
Additionally, the President appoints a General Counsel, who is responsible for
conducting litigation under the laws enforced by the Commission.

The Office of Inspector General

The U.S. Congress’s 1988 amendments to the Inspector General Act of 1978 established
an Office of Inspector General (OIG) at the EEOC. In October 2008, Congress passed the
Inspector General Reform Act of 2008, which generally buttressed the independence of
inspectors general, increased their resources, and held them more accountable for their
performance.

The EEOC OIG is under the supervision of the Inspector General (IG), an independent
EEOC official subject to the general supervision of the Chair of EEOC. Under the
direction of the IG, the OIG meets its statutory responsibilities by conducting and
supervising audits, evaluations, and investigations designed to detect and prevent fraud,
waste and abuse, and to promote economy, efficiency, and effectiveness in the
administration of the Agency’s programs and operations.




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                   OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
The IG provides overall direction, coordination, and leadership for the OIG, and is
responsible for establishing and implementing the OIG’s strategic vision and core values.
The IG is the principal advisor to the Chair on all audit and investigative matters
involving the prevention, detection, and elimination of waste, fraud, and or abuse in any
EEOC program or operation. The IG recommends the proper boundaries of audit and
investigative jurisdiction between the OIG and other EEOC organizations. The IG also
develops a separate and independent annual budget for the OIG and responds directly to
inquiries from the public, the Congress, or the news media.

The Deputy Inspector General (DIG) serves as the alter ego of the IG and participates
fully in policy development and management of the diverse audit, investigation,
evaluation, and support operations of the OIG. The DIG also ensures that the Audit,
Evaluation, and Investigation Programs (AEIP) address their mission, goals, and
objectives in accordance with the Inspector General Act, other laws, agency policy, and
congressional requests. The AEIP staff conducts audits, evaluations, and investigations of
EEOC operations and activities and prepares reports for the Chair, EEOC management,
and Congress.

The Counsel to the Inspector General (CIG) is the sole legal advisor in the OIG,
providing advice in connection with matters of importance to the OIG. The CIG provides
day-to-day guidance to the OIG’s investigation team and is the primary liaison with
Agency legal components and the Department of Justice. The CIG assists the IG and DIG
in the development and implementation of the OIG’s policies and procedures. The CIG
conducts legal reviews of all audit, evaluation, and investigation reports; reviews
proposed and revised legislation and regulations; and recommends appropriate responses
and actions.

In addition to these personnel, the OIG staff includes an evaluator, two auditors, two
criminal investigators, an administrative specialist, and a confidential support assistant.
An Agency staff attorney began a career development detail with the OIG during the first
quarter of FY 2011.

The OIG has two critical vacancies. The Deputy Inspector General position, the IG’s
alter-ego and the first line supervisor for the OIG’s auditors, evaluators, and
investigators, has been vacant since May 2011 following the appointment of the
incumbent Deputy Inspector General to the position of Inspector General. The OIG’s
Management Analyst position has been vacant since April 2010. This position, which
was reclassified to a GS-2210 Information Technology Management series, manages the
OIG’s information technology program, including OIG’s oversight of the Agency’s
annual Federal Information Security Management Act (FISMA) evaluation; performs
computer forensics for OIG’s investigative component; designs, procures, implements
and supervises the OIG’s investigative case management and audit tracking systems; and
is responsible for the procurement and maintenance of OIG’s hardware and software. The


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                    OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
OIG awaits an exemption to the government-wide freeze on hiring in order to fill these
essential positions.




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                   OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
                        THE AUDIT AND EVALUATION PROGRAM
                        The Audit and Evaluation Program supports the OIG’s strategic goal to
                        improve the economy, efficiency, and effectiveness of EEOC programs,
                        operations, and activities.



Completed Projects

Management Advisory on EEOC’s Open Government Activities

On December 8, 2009, the OMB issued memorandum M10-06, known as the “Open
Government Directive” (OGD). It requires executive agencies to take specific actions to
implement the three principles of transparency, participation, and collaboration that form
the cornerstone of open government set forth by the President. On July 15, 2011, the OIG
issued a management advisory on EEOC’s Open Government activities.

In addition to developing a draft plan, EEOC took several actions to meet OGD
requirements. EEOC created an Open Government initiative web site on February 5,
2010. The web site, (http://www.eeoc.gov/open/index.cfm), contains information on four
topics: information and data; Open Government Plan; evaluating EEOC progress; and
feedback and input. The information and data section contains links to EEOC data
available at www.data.gov, a website that contains EEOC data sets described later in this
document. The information and data section also contains a link to other information and
data, such as budget and performance data, and meetings of the Commission.

The advisory states that we believe EEOC should (1) maintain approval of an Open
Government Plan as a high priority and (2) regularly communicate EEOC’s Open
Government progress with all Agency staff.

Management Advisory on EEOC’s Potential for Infrastructure (Real Estate) Cost
Saving

On September 30, 2011, the OIG issued a management advisory on EEOC’s potential for
infrastructure (real estate) cost saving. Recent discussions with EEOC leadership
revealed renewed interest in the potential of telework as a key tactic in the Agency’s
overall strategy to achieve improved cost management. Based on the OIG’s previous
studies and those discussions, we believe EEOC is in an ideal position to use frequent
telework1 to achieve major infrastructure cost saving. The OIG frequent telework cost
model, developed in 2003 as the key component of an evaluation concerning Agency

1
    OIG defines frequent telework as telework scheduled to be performed a minimum of two days per week.


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                           OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
infrastructure,2 shows EEOC can achieve major long-term saving by reducing the amount
of space that the Agency uses.

The advisory stated that EEOC should consider forming an Agency wide task force to
review our cost model, and assess the opportunities and risks associated with its use in
the current environment. The task force should include a broad cross-section of those
likely to participate in or be directly affected by a robust telework program.

The OIG views the use of telework to reduce real estate costs as a long-term method to
achieve improved cost management. However, initial measurable cost savings may not be
realized for several years following implementation. Thus, it is prudent to view the
development, implementation and management of a telework program designed to reduce
real estate costs through a strategic lens, and to manage outcomes and expectations from
a long-term fiscal perspective.

New and Ongoing Audit and Evaluation Projects
FY 2011 Audit of the Consolidated EEOC Financial Statements
The OIG contracted with Harper, Rains, Knight & Company, P.A., of Ridgeland,
Mississippi, to perform the 2011 financial statement audit of EEOC, which is required
by the Accountability of Tax Dollars Act of 2002. Fieldwork is ongoing, and the audit
opinion is expected to be issued by November 15, 2011, to meet the OMB’s deadline
and to be included in the Agency’s 2011 Performance and Accountability Report.
Additionally, a management letter report will be issued shortly after the financial
statement audit, identifying any internal control weaknesses.
FY 2011 Federal Information Security Management Act Audit
The OIG contracted with Clifton Gunderson, LLP, to perform an independent
evaluation of EEOC’s information security program and of selected EEOC systems for
compliance with the Federal Information Security Management Act of 2002 (FISMA)
and the FY 2011 Inspector General Federal Information Security Management Act
reporting requirements issued by the Department of Homeland Security. An entrance
conference was held on August 22, 2011. Fieldwork is under way and is scheduled to
be completed early in the first quarter of 2011 to meet the November 15, 2011, OMB
reporting deadline.




2
    Reducing Infrastructure Costs Through Increased Use of Telework, Report No. 01-13-AMR.


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                          OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
Agency Compliance with the Federal Managers’ Financial Integrity Act

EEOC Order 195.001, “Internal Control Systems,” requires the OIG to annually provide
the Chair a written advisory on whether EEOC’s management control evaluation process
complies with OMB guidelines. The OIG’s independent assessment determines whether
the Agency’s management control evaluation process was conducted in accordance with
OMB standards. To make this determination, the OIG is reviewing

     system assurance statements submitted by headquarters and district directors;

     functional area summary tables and functional area reports submitted by
      headquarters and field offices; and

     EEOC’s Office of Research, Information, and Planning’s FY 2011 Federal
      Managers’ Financial Integrity Act (FMFIA) Assurance Statement and Assurance
      Statement Letter, with supporting documents.

The OIG will issue its findings to the Chair of the Agency prior to the Agency’s reporting
deadline for its FY 2011 Performance and Accountability Report, which is November 15,
2011.

Review of EEOC Relocation Planning

The primary purpose of this review is to determine how EEOC can improve its efficiency
and effectiveness in the planning and execution of future EEOC office relocations. The
OIG issued a preliminary draft report to the Office of the Chief Financial Officer (OCFO)
in February 2010 and received OCFO’s comments in March 2010. The OIG suspended
activity on the project in the third quarter of FY 2010 and resumed activity in the fourth
quarter of FY 2011. The OIG plans to issue a draft report in the first quarter of FY 2012
and a final report in the second quarter of FY 2012.

Program Review of Audit Follow-Up Process

According to OMB Circular A-50,

       Audit follow-up is an integral part of good management, and is a shared
       responsibility of agency management officials and auditors. Corrective action
       taken by management on resolved findings and recommendations is essential to
       improving the effectiveness and efficiency of Government operations. Each agency
       shall establish systems to assure the prompt and proper resolution and
       implementation of audit recommendations. These systems shall provide for a
       complete record of action taken on both monetary and nonmonetary findings and
       recommendations.


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                    OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
Over the past several years congressional leaders have expressed a heightened interest in
the disposition of recommendations resulting from IG reports and from external audit
reports issued by other Federal agencies. Similarly, senior Agency management has
committed to redoubling its efforts to resolve pending monetary and nonmonetary audit
findings and recommendations. In light of the foregoing, in August 2011 the OIG
initiated planning for a review of the Agency’s audit follow-up process. The OIG will
commence the project with an entrance conference during the first quarter of FY 2012
and anticipates issuing draft and final reports during the third quarter of FY 2012.

Audit Follow-Up

Audit follow-up is an integral part of good management and is a shared responsibility of
Agency management officials and auditors. Corrective action taken by management to
resolve findings and recommendations is essential to improving the effectiveness and
efficiency of Agency operations.

Section 5(a)(1) of the Inspector General Act of 1978, as amended, requires that
semiannual reports include a summary description of significant problems, abuses, and
deficiencies relating to the Agency’s administration of programs and operations disclosed
by the OIG during the reporting period. No new reports were issued during this reporting
period (April 1, 2011–September 30, 2011).

As required by Section 5(a)(3) of the Inspector General Act of 1978, as amended,
semiannual reports shall provide an identification of each significant recommendation
described in previous semiannual reports on which corrective action has not been
completed. OIG staff met with Agency follow-up officials in August 2011. The OIG is
reporting a total of 12 reviews with a total of 56 open recommendations for this reporting
period. The following table shows those recommendations for which corrective action
has not been completed.




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                   OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
       Recommendations for Which Corrective Actions Have Not Been Completed

     Fiscal
      year    Report number                          Report title                         Date issued
     2010     2010-04-FIN             FY 2010 Financial Statement Audit                    2/7/2011
                                         Management Letter Report

                                       Open Recommendations:
        Report those offices that do not submit property certifications in accordance with
          established policy to the Office of the Chair, and require that justification be provided
          for late certifications.
        Conduct internal audits of submitted property certifications, to ensure reported
          property is correctly reported as to type and location.
        Establish a policy to perform internal audits of the EEOC eOPF system for proper
          implementation and application of all OPM and EEOC policies and procedures over
          the recording and maintaining of official personnel records.
       Establish a policy that requires the system owner to review the service provider SAS 70 or
       equivalent report.

 Implement and document the implementation of all applicable client control considerations
 provided by the service provider. The documentation should be readily available for review
 and shared with all relevant EEOC offices.



     Fiscal
      year    Report number                          Report title                         Date issued
     2010     2010-03-FIN             FY 2010 Financial Statement Audit                   11/10/2010

                                       Open Recommendations:
        Integrate and document the existence of controls in the web based time and attendance
          system set for implementation in January 2011, which address and mitigate the time
          and attendance deficiencies identified in the current year and two previous years.
        Establish a policy and procedure to perform internal audits of the EEOC time and
          attendance system for proper implementation and application of all EEOC policies and
          procedures over the recording and maintaining of time and attendance.
       The Revolving Fund Division (RFD) and CFO should work with the third party
       contractors of EEOC’s on-line registration and payment and core accounting systems to
       identify potential solutions to systems limitations regarding the recording of RF revenue
       and accounts receivable transactions.




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                     OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
        RFD management should continue working with the third party contractor of EEOC’s
         on-line registration and payment system to ensure accurate and complete
         documentation is maintained and readily available to support all RF transactions
         recorded in the general ledger.
        RFD management should document all manual procedures performed to maintain
         proper RF revenue and accounts receivable balances.
       RFD management should maintain complete documentation and justification for all
       manual RF transactions entered in Momentum by RFD personnel.




     Fiscal
      year       Report number                          Report title                         Date issued
     2010           2010-07-        Federal Information Security Management                  11/1/2010
                     FISMA                        Act Report

                                          Open Recommendations:
             Improve documentation of Certification and Accreditation procedures, including the
              POA&M process.
             Bring the security control baseline for all systems up to NIST SP 800-53 Revision 3.
             Develop/improve vulnerability scanning capability, and incorporate the results of
              scanning into the POA&M process.
             Implement multifactor authentication.
             Ensure that procedures are followed for disabling accounts no longer added.
             Implement dual accounts for administrators.
             Implement procedures to disallow sharing of accounts by administrators.
             Implement stronger password complexity requirements for remote access, to meet
              EEOC policy.
             Develop and implement policies and procedures for continuous monitoring.
             Define log retention, auditable events and log monitoring needs for agency system.




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                        OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
     Fiscal
      year       Report number                           Report title                         Date issued
     2010         2010-09-AEP            Evaluation of the Management of the                  3/21/2011
                                          EEOC’s State and Local Programs

                                           Open Recommendations:
             Develop and implement strategic performance goals and objectives that are reflective
              of the program; are measurable, and in accordance with the requirements of GPRA.
             Work with the CFO to include the performance goals, objectives, and measures in the
              annual performance and accountability report.
             Request additional funding to provide Fair Employment Practice Agencies (FEPAs)
              with formal Substantial Weight Review (SWR) training and other alternative training
              methods that will allow FEPAs to take advantage of the actual technology and to reach
              a widest audience in a more efficiently and cost effective structure.
             Request additional funding in future budget request to invest in electronic applications
              and equipment to reduce the cost related to SWRs.
             Perform a full assessment of the cost for resolution and intakes; reassess the current
              payment amounts and the case quotas; and consider making appropriate adjustments to
              the payment amounts and budgeted quotas to provide a fee that covers a greater
              percentage of cost of case processing.
             Request additional funds to provide incentive payments to FEPAs to go beyond their
              case quota in order to encourage continued productivity.
             Revisit their budget allocation process to determine ways that the process can be
              improved to be more efficient and timely and provide better controls designed to
              reduce the potential for fraud.
             Develop and institute a consistent monitoring process for the District Offices that
              occurs throughout the fiscal year, and not just at fiscal year end.
             Develop written procedures for processing voucher payments in collaboration with the
              Office of Finance.


     Fiscal
      year       Report number                           Report title                         Date issued
     2009         2009-05-FIN      FY 2009 Financial Statement Audit              1/12/2010
                                       Management Letter Report
                                    Open Recommendations:
        EEOC should ensure that all users accounts are assigned to a unique individual; ensure
         that all Data Network and e-mail accounts are created and authorized in accordance
         with EEOC policies and procedures; disable network and e-mail accounts that have not
         been used within 30 days, as mandated by the Office of Information Technology’s
         Controls for Creating, Changing, and Terminating System Account Policy; ensure that


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                         OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
          all offices comply with the required annual user account confirmation procedures
          listing within the EEOC OIT policy on creating, changing, and terminating System
          Accounts. (Finding repeated in FY 2010 management letter.)
        EEOC update the Network Vulnerability Scan Policies and Procedures to ensure that
          the volume of medium and high-risk vulnerabilities identified as a result of scanning is
          in accordance with industry best standards. (finding repeated in FY 2010 Management
          Letter.)
       EEOC management develops and implements policies and procedures for outsourced
       applications to ensure application security violations are appropriately reviewed and
       reported. (finding repeated in FY 2010 management Letter.)



     Fiscal
      year    Report number                         Report title                          Date issued
     2008     2008-13-AEP            Independent Evaluation of Agency                     9/24/2008
                                    Compliance with Federal Information
                                         Systems Management Act

                                     Open Recommendations:
        Implement plans and procedures with the Agency field offices to identify and excess
         all old and nonworking information systems by April 30, 2008; also ensure that
         information is appropriately destroyed before the systems’ excess.
        Develop and implement policies and procedures to provide periodic reminders to all
         employees and contractors of their responsibilities to take reasonable measures to
         safeguard authenticators (passwords) from being exposed to unauthorized personnel.


     Fiscal
      year    Report number                         Report title                          Date issued
     2008     2008-12-AEP      FY 2008 Independent Audit of EEOC Privacy                  9/30/2008
                                               Program

                                     Open Recommendations:
        Develop and implement policies and procedures to provide periodic reminders to all
         employees and contractors of their responsibilities to protect sensitive personally
         identifiable information (PII) in both electronic and hard-copy format.
        Develop, document, and implement procedures to monitor compliance with EEOC
         policies and procedures related to the protection, processing, storage, and destruction
         of sensitive hard copy PII.
        Centralize administration of Web site privacy policies.


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                     OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
        Ensure that all privacy policies posted to EEOC Web sites comply with OMB
         requirements.
        Ensure that all privacy policies are posted on (a) EEOC’s principal Web site, (b) any
         known major entry points to EEOC sites, and (c) any Web page that collects
         substantial information in identifiable form.
        Review all privacy laws and regulations and identify those applicable to the EEOC.
        Develop, document, and implement a formal process for ensuring all new privacy-
         related laws and regulations are evaluated to determine whether the EEOC is required
         to follow them.
        Continue with the planned action to implement two-factor authentication with the
         implementation of badges for Homeland Security Presidential Directive 12.

     Fiscal
      year    Report number                          Report title                         Date issued
     2009      2008-06-FIN         FY 2008 Financial Statement Audit               2/12/2009
                                        Management Letter Report
                                    Open Recommendations:
        Office of Human Resources (OHR) obtain and file all documentation supporting
         personnel and payroll actions taken and ensure that information is available for review
         upon request. (Finding repeated in FY 2010 Management Letter.)


     Fiscal
      year    Report number                         Report title                          Date issued
     2008     2008-03-AMR        Oversight of Federal Agency Reporting       9/26/2008
                                Management Directive 715 (MD-715) and
                                             Related Topics
                                    Open Recommendations:
        Obtain customer feedback on MD-715 and other oversight issues using a real-time
         blog or similar mechanism.
        Require Federal agencies to submit Part G, of their Equal Employment Opportunity
         assessment, with their annual MD-715 submissions.




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                     OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
     Fiscal
      year      Report number                       Report title                    Date issued
     2007       2007-12-AMR     Evaluation of EEOC Field Office Continuity           3/27/2008
                                         of Operations (COOP) Plans
                                       Open Recommendations:
        Direct field office directors to prepare COOP activities to ensure that field offices are
         adequately prepared for a COOP event.
        Ensure that all field office staff takes the COOP awareness course.
        Develop and implement policies and procedures instructing field office staff to store
         all mission-critical electronic files on Agency-managed network drives.


     Fiscal
      year       Report number                          Report title                         Date issued
     2008           2007-11-         Performance Audit of the Equal Employment           8/26/2008
                    RFPERF               Opportunity Commission’s Education,
                                     Training, and Technical Assistance Program
                                                    Revolving Fund
                                           Open Recommendations:
             Operate the Revolving Fund as an independent program within the Agency.
             Approve the establishment of the EEOC Training Institute Steering Committee.
             Update the Revolving Fund Business Plan to reflect strategic direction, vision, and
              goals over the next three to five years.
             Initiate cross-training between job functions where reasonable and practical.
             Reconcile spending plans to amounts recorded in the accounting system.
             Seek professional assistance to develop a more effective budgeting method to project
              financial information to plan training events and monitor goals.


     Fiscal
      year      Report number                  Report title                    Date issued
     2007       2007-07-ADV   Strategic Management of Human Capital,            4/29/2009
                                           Succession Planning
                                    Open Recommendations:
        EEOC’s Chair and senior management should take an active role in the Agency's
         succession planning efforts, including ensuring that OHR takes actions to move the
         Executive and Senior Leadership Development Program forward including finalizing
         the document.




16
                        OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
As required by Section 5(a) (10) of the Inspector General Act of 1978, as amended,
semiannual reports shall include a summary of each audit report issued before the start of
the reporting period for which no management decision has been made by the end of the
reporting period. The OIG has no audit or evaluation reports that were issued before the
reporting period began for which no management decision has been made.




17
                   OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
         THE INVESTIGATION PROGRAM
         The Investigation Program supports the OIG’s strategic goal to focus
         limited investigative resources on issues that represent the greatest risk
         and offer the maximum opportunity to detect and prevent fraud, waste,
         and abuse in EEOC programs and operations.


INVESTIGATIVE INQUIRIES


                    Investigative Inquires Received
                   April 1, 2011–September 30, 2011

                   Allegations                   Number

                                                             282
         Charge Processing

         Other Statutes                                       65

         Title VII                                           245

         Mismanagement                                          0

         Ethics Violations                                    10

         Backgrounds                                            9

         Theft                                                  4

         Threats                                              70

         Fraud                                                  0

         Other Criminal Allegations                           12

         Congressional Inquiries                                1

         Total                                               698




18
           OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
COMPLETED INVESTIGATIONS
Conflict of Interest

The EEOC’s Office of Legal Counsel is the Agency’s designated ethics official (DAEO )
and, among other DAEO responsibilities, conducts annual reviews of employees financial
disclosure reports. When those reviews indicate possible violations of ethics regulations
resulting in potential criminal conduct the DAEO refers those matters to the OIG for
investigation. During the reporting period, the OIG completed three investigations of
matters involving alleged conflicts of interest which were referred by the DAEO.

Title 18 U.S.C. §208 prohibits a government employee from participating “personally
and substantially” in a matter in which he has a financial interest.

In one instance, the DAEO referred a matter involving a field office supervisory
investigator and his review of a charge against a company in which he held shares of
stock sufficient in number to warrant his recusal from participating personally and
substantially in the matter. In this instance, the evidence adduced by the OIG
investigation revealed that the aggregate value of the employee’s stock holdings, at the
time of his involvement in the matter, was less than the regulatory threshold set forth in 5
C.F.R. §2640.202(a)(2) requiring recusal from participation. Accordingly, no further
action was warranted and the matter was closed.

In another instance, involving Title 18 U.S.C. §208, the evidence gleaned from the OIG
investigation resulted in a determination that while the employee had involvement in the
disposition of a matter in which she may have had a financial interest, her involvement
was not substantial but rather ministerial and therefore did not constitute a violation of
§208.

The investigation of the third alleged conflict of interest referral from the DAEO resulted
in a similar finding that the subject employee did not participate “personally and
substantially” in the processing and disposition of the matter in which he had a financial
interest. In this instance, a field office supervisory investigator reviewed and signed off
on a charge against a company in which he held shares of stock. After a review of the
charge file, the OIG determined the action was ministerial in nature. Accordingly, the
matter was closed.

False Statements and Unauthorized Outside Business Activities

The OIG received a complaint alleging that EEOC had hired an unqualified applicant
who did not possess the requisite experience for a field office management position. The
complainant alleged as well that the person had submitted a falsified resume and
employment records to EEOC hiring officials. The complainant alleged further that the


19
                    OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
employee engaged in presumably unauthorized outside business activities after being
hired by EEOC. The OIG’s extensive investigation in this matter did not uncover any
evidence to support the allegations, and the matter was closed.

Fraud

The OIG received a complaint from a charging party alleging that the EEOC field office
investigating the complainant’s charge of discrimination had dismissed the charge
without conducting an investigation, having based its determination on erroneous and
malicious misrepresentation of material facts. Moreover, the complainant alleged that
EEOC had fabricated the existence of a confidential “source witness” to support its
dismissal of the complainant’s charge. The complainant also asserted document
tampering by EEOC through its alleged destruction and removal of documents from the
charge file. The OIG’s investigation revealed that the complainant’s allegations were
unfounded. In sum, our investigation disclosed no evidence to support the allegations of
misconduct in the investigation of the complainant’s employment discrimination charges.

Misuse of Position

A complaint alleged that an EEOC field office investigator misused his position in an
attempt to develop personal relationships with charging parties. The subject used his
personal telephone to conduct non-official business (i.e., personal calls), and sent text
messages and pictures of a personal nature to six female charging parties. All of the
contacts with these charging parties were made during the course of his investigation of
their employment discrimination charges. During an OIG interview, the subject admitted
having made numerous attempts to develop personal relationships with the charging
parties during his investigations of their EEOC employment discrimination charges. The
employee subsequently resigned from Federal service. Accordingly, the OIG closed the
matter.

ONGOING INVESTIGATIVE ACTIVITES

The OIG has ongoing investigations in several field offices involving prohibited
personnel practices, ethics violations, conflicts of interest, fraud, mismanagement,
falsification of government records, impersonation of a Federal official, theft of
government property, and threats against the Agency.




20
                     OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
OTHER OIG PROGRAM ACTIVITIES
Peer Review of EEOC Audit Organization

The National Labor Relations Board’s (NLRB) Office of Inspector General completed a
peer review of the audit organization of the EEOC OIG for the three-year period ended
March 31, 2011. The EEOC’s OIG received a rating of Pass, which is the highest peer-
review rating, signifying that EEOC OIG’s system of quality control was suitably
designed to provide reasonable assurance of performing and reporting in conformity with
applicable professional standards. A copy of the NLRB system review report is available
on our Website at http://www.eeoc.gov/eeoc/oig//peer_review.cfm.

Review of Single Audit Act Reports

The Single Audit Act of 1984 requires recipients of Federal funds to arrange for audits of
their activities. Federal agencies that award these funds must receive annual audit reports
to determine whether prompt and appropriate corrective action has been taken in response
to audit findings. During the reporting period, the OIG reviewed 36 audit reports issued
by public accounting firms concerning Fair Employment Practices Agencies (FEPAs)
that have work-sharing agreements with EEOC. Additionally, there were no audit
findings for the FEPAs that involved EEOC funds (see Appendix 3).




21
                    OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
APPENDIX 1. FINAL OFFICE OF INSPECTOR GENERAL
AUDIT AND EVALUATION REPORTS
No final reports issued.




22
                      OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
     APPENDIX 2. INDEX OF REPORTING REQUIREMENTS


Inspector General
                                        Reporting requirement                            Page(s)
   Act citation

Section 4(a)(2)     Review of legislation and regulations                                N/A
Section 5(a)(1)     Significant problems, abuses, and deficiencies                       7-17


                    Recommendations with respect to significant problems,
Section 5(a)(2)                                                           7-8
                    abuses, and deficiencies


                    Significant recommendations included in previous reports on
Section 5(a)(3)                                                                 11-16
                    which corrective action has not been completed

Section 5(a)(4)     Matters referred to prosecutorial authorities                        19-20
Section 5(a)(5)     Summary of instances where information was refused                   N/A
Section 5(a)(6)     List of audit reports                                                N/A
Section 5(a)(7)     Summary of significant reports                                       2-3
Section 5(a)(8)     Questioned and unsupported costs                                     N/A
Section 5(a)(9)     Recommendations that funds be put to better use                      N/A


                    Summary of audit reports issued before the commencement of
Section 5(a)(10)    the reporting period for which no management decision has N/A
                    been made



                    Significant management decisions that were revised during
Section 5(a)(11)                                                              N/A
                    the reporting period

                    Significant management decisions with which the office of
Section 5(a)(12)                                                              N/A
                    inspector general disagreed




23
                    OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
APPENDIX 3. SINGLE AUDIT ACT REPORTS

The Single Audit Act of 1984 requires recipients of Federal funds to arrange for audits of
their activities. Federal agencies that award these funds must receive annual audit reports
to determine whether prompt and appropriate corrective action has been taken in response
to audit findings. During the reporting period, the OIG reviewed 36 audit reports issued
by public accounting firms concerning Fair Employment Practice Agencies (FEPAs) that
have work-sharing agreements with EEOC. There were no audit findings for the FEPAs
that involved EEOC funds.


 The State of California, June 30, 2010              The State of Tennessee, June 30, 2010
 The State of Georgia, June 30, 2010                 The State of Oklahoma, June 30, 2010
 The State of Washington, June 30, 2010              The State of South Dakota, June 30,
                                                     2010
 The State of Rhode Island and Providence            The State of New Hampshire, June 30,
 Plantations, June 30, 2010                          2010
 The State of Connecticut, June 30, 2010             The State of New York, June 30, 2010
 The State of Maryland, June 30, 2010                The State of Delaware, June 30, 2010
 The State of New Jersey, June 30, 2010              The State of Oregon, June 30, 2010
 The State of Virginia, June 30, 2010                The State of North Carolina, June 30,
                                                     2010
 The State of Idaho, June 30, 2010                   The State of Louisiana, June 30, 2010
 The State of Indiana, June 30, 2009                 The State of Ohio, June 30, 2010
 The State of Massachusetts, June 30, 2010           The City of New York, June 30, 2010
 The State of West Virginia, June 30, 2010           The State Utah, June 30, 2010
 The State of Arizona, June 30, 2010                 The State of Wyoming, June 30, 2009
 The State of Alaska, June 30, 2010                  The State of Nevada, June 30, 2010
 The State of Missouri, June 30, 2010                The State of Kansas, June 30, 2010
 The Cherokee Nation, September 30, 2009             The State of Vermont, June 30, 2010
 The State of Maine, June 30, 2010                   The State of Florida, June 30, 2010
 The State of Wisconsin, June 30, 2010               The State of Kentucky, June 30, 2010




24
                    OIG Semiannual Report to Congress April 1, 2011-September 30, 2011
     EEOC-OIG The Hotline

     The EEOC Hotline Program was established for Agency employees, other
     Government employees, contractors, and the general public to report fraud, waste,
     abuse, or wrongdoing by phone, e-mail, or by mail.

     What Should you Report

     You should report any concern you may have over a situation in which EEOC is
     the potential victim of fraudulent acts by employees, contractors, or others. It
     includes any violations of laws, rules, regulations, gross mismanagement, gross
     waste or misappropriation of funds, and abuses of authority


     OIG Hotline Contact Information


                           Call:
                           EEOC-OIG Hotline
                           Toll-free 1-800-849-4230


                          E-Mail:
                          INSPECTOR.GENERAL@EEOC.GOV



                          Write:
                          Equal Employment Opportunity Commission
                          Office of Inspector General
                          PO Box 77067
                          Washington, DC 20013-7067

       Identities of Writers, E-mailers, and Callers are always Fully Protected


25
                      OIG Semiannual Report to Congress April 1, 2011-September 30, 2011