oversight

Semi-annual report: Oct-Mar 2011

Published by the Equal Employment Opportunity Commission, Office of Inspector General on 2011-04-30.

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
 October 1, 2010 to March 31, 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 October 1, 2010 - March 31, 2011
                         Equal Employment Opportunity Commission




CONTENTS


A Message from the Acting Inspector General                                        1

Executive Summary                                                                  2

Introduction                                                                       4

The Audit and Evaluation Program                                                   6
Completed Projects
New and Ongoing Audit and Evaluation Projects
Audit Follow-up

The Investigation Program                                                          16
Investigative Inquiries
Completed Investigations
Ongoing Investigative Activity

Other OIG Program Activities                                                       19

Appendixes                                                                         21
Appendix 1. Final Office of Inspector General Audit and Evaluation Reports
Appendix II. Index of Reporting Requirements
Appendix III. Single Audit Act Reports




                    OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                          Equal Employment Opportunity Commission




              A MESSAGE FROM THE
           ACTING INSPECTOR GENERAL


I   n accordance with the Inspector General Act of 1978, as amended, I herewith submit
the Semiannual Report for the period October 1, 2010 through March 31, 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 the Congress within 30 days of its receipt.

The Office of the Inspector General (OIG) enjoyed a productive six months. Faced with
austere budgets that continue to affect essential staffing, the OIG completed eight
investigations and received 525 investigative inquiries.

Included among significant audit and evaluation projects is the evaluation of the State
and Local Programs. This is the first report in the OIG’s efforts to implement its new
approach of conducting short term evaluations that maximize the impact of the evaluation
function by providing current and relevant information for use by Agency leadership to
improve the potential for more immediate gains in program performance and results. In
continuing this new evaluation process, the office has begun exploring academic
partnerships that will assist the OIG in its efforts to deliver a series of efficient and timely
reviews.

On behalf of the OIG, I want to extend our thanks to the Chair, Jacqueline Berrien and
her leadership team for their cooperation and support during the reporting period. We
look forward to continuing to work with Chair Berrien and her leadership team as we
pursue our oversight efforts.

In closing, I would like to thank the dedicated staff of the OIG for maintaining the
highest standards of integrity and professionalism, and for their continued commitment to
the mission of this office.


Milton A. Mayo Jr.
Acting Inspector General
April 30, 2011



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                     OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                         Equal Employment Opportunity Commission




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 October 1, 2010, through March 31, 2011.

During the reporting period the OIG issued three audit products, closed eight
investigative matters, and received 525 inquiries, of which 224 were charge-processing
issues, 182 were Title VII complaints, and 119 were other investigative allegations.

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

     The OIG conducted an independent evaluation of the Agency’s information
      security program pursuant to requirements of the Federal Information Security
      Management Act (FISMA). The evaluation disclosed that the EEOC had a robust
      security program and was in substantial compliance with FISMA. However, five
      areas were identified for improvement: Certification and Accreditation,
      Configuration Management, Remote Access Management, Identity and Access
      Management, and the Agency’s Continuous Monitoring program.

     OIG contractor Harper, Rains, Knight & Company, P.A., issued an unqualified
      opinion of the EEOC’s fiscal year (FY) 2010 financial statements. The
      Independent auditors Report on internal controls identified significant deficiencies
      in time and attendance controls and controls over revenue and receivables.

     OIG issued a management letter for the EEOC fiscal year ending 2010. Internal
      control weaknesses were identified relating to controls over property and
      equipment, electronic official personnel file management, and Statement on
      Auditing Standards no. 70 (SAS 70) client control considerations and Information
      Technology.

     The firm of Harper, Rains, Knight & Company, P.A. commenced an audit of the
      EEOC’s FY 2011 financial statements.

     The OIG’s first review of the EEOC’s State and Local Programs was completed
      by independent contractor Williams, Adley & Company, LLP. The purpose of the
      review was to generally assess the Agency’s performance in managing this
      program and to establish a baseline for future more comprehensive reviews
      focused on critical performance metrics and operations of the State and Local

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                    OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                         Equal Employment Opportunity Commission

       Programs. Recommendations were made in key areas of performance goals and
       objectives, oversight of case quality, payment eligibility and amounts, and the
       voucher payment process.

     In accordance with Agency policy directive EEOC Order 195.001 Management
      Accountability and Controls, the OIG issued its annual report to the Chair on
      November 13, 2010, validating the Agency’s compliance with the Federal
      Managers Financial and Integrity Act. No material weaknesses were identified.

     The OIG initiated a review of the EEOC’s Open Government activities, and will
      issue a draft and a final report during the third quarter of FY 2011.

     The OIG completed investigations involving an array of allegations including
      fraud, loss of Personally Identifiable Information (PII), and prohibited personnel
      practices.

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




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                    OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                        Equal Employment Opportunity Commission



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 presidential 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 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’ 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 the 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 October 1, 2010 - March 31, 2011
                        Equal Employment Opportunity Commission



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 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, an IT specialist, 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 vacant positions. The position of Inspector General has been vacant
since January 2010 following the retirement of the previous IG. The OIG’s Management
Analyst position has been vacant since April 2010. The Management Analyst managed
the OIG’s IT program, including its oversight of the Agency’s annual Federal
Information Security Management Act (FISMA) evaluation. Following a desk audit by
the EEOC’s Office of Human Resources (OHR), the position was reclassified into the
GS-2210 series Information Technology Management. However, in light of a mandatory
freeze on government hiring, the OIG awaits clearance to recruit for this essential
position.



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                   OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                          Equal Employment Opportunity Commission




                   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

Fiscal Year 2010 FISMA Independent Evaluation

The OIG contracted with Delta Corporate Services-Government Solutions Group (Delta)
to perform the OIG’s independent evaluation of the effectiveness of the Agency’s
information security program. Delta reported that the EEOC had a robust security
program and was in substantial compliance with the FISMA. However, Delta noted the
following areas where improvements were needed to better comply with National
Institute of Standards and Technology (NIST) standards and guidelines and FISMA
requirements:

    1.   Certification and accreditation
    2.   Configuration management
    3.   Remote access management
    4.   Identity and access management
    5.   Continuous monitoring

Audit of the EEOC’s Fiscal Year 2010 Financial Statements

The OIG contracted with the independent certified public accounting firm of Harper,
Rains, Knight & Company, P.A. (HRK) to audit the financial statements of the EEOC for
FY 2010. HRK issued an unqualified opinion on EEOC’s FY 2010 financial statements.
In its Report on Internal Control over Financial Reporting, HRK noted two areas
involving internal control that were considered to be significant deficiencies. These
included time and attendance controls and controls over revenue and receivables. In its
report on Compliance with Applicable Laws and Regulations, HRK noted no instances of
non compliance with laws and regulations applicable to the Agency.




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                     OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                        Equal Employment Opportunity Commission

Management Letter for the EEOC for Year Ending September 30, 2010

On February 7, 2011, OIG issued its management letter in connection with the FY 2010
financial statement audit. This year’s management letter identified internal control
weaknesses relating to the following areas: property and equipment, electronic official
personnel files, SAS 70 client control considerations and information technology.
Included in the recommendations to EEOC management were to report those offices that
do not submit property certifications in accordance with established policy to the Office
of the Chair, and require that justifications be provided for late certifications; and to
conduct internal audits of submitted property certifications to ensure reported property is
correctly reported as to type and location. Also, the report included recommendations
relating to information technology that were contained in the FY 2010 FISMA report.

Management generally concurred with HRK’s recommendations with the exception of
the recommendation #2 relating to conducting internal audits of submitted property
certifications. Responses from management were included as part of the report.

Evaluation of the Management of the EEOC’s State and Local Programs

EEOC provided about $30 million in FY 2010 to its state and local partners, known as
Fair Employment Practice Agencies (FEPAs), to resolve employment discrimination
charges. The OIG contracted with the Washington, D.C., office of Williams, Adley &
Company, LLP (Williams Adley), to conduct a program evaluation of the EEOC State
and Local Programs Office to generally assess the Agency’s performance in managing
this program.

Williams Adley issued a final report with these key findings and conclusions:
   1. EEOC has not established any performance goals or objectives for the FEPAs.
   2. Potential areas for improving efficiency through the use of technology and training
      should be capitalized upon by EEOC.
   3. The internal EEOC budget allocation and funding process is not efficient because
      the allocations are not available and recorded in the financial management system
      until the middle of the fiscal year and thus no FEPA payments can be processed
      until that point.
   4. The EEOC’s financial policies and procedures related to the voucher payment
      process are not documented and communicated effectively throughout the
      organization.
The report recommends
   1. management of the Office of Field Programs develop and implement strategic
      performance goals and objectives;
   2. management of the State and Local Programs Office consider including additional
      funding in future budget requests to invest in electronic applications and related



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                   OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                        Equal Employment Opportunity Commission

       technology for the EEOC review of the FEPA work performed for EEOC (known
       as substantial weight reviews) and additional training for the FEPAs;
    3. management of the State and Local Office perform a full assessment of the costs
       for resolution and intake; reassess the current payment amounts and the case
       quotas and consider that State and Local Program management consider allocating
       additional funds to provide incentive payments to FEPAs to go beyond their case
       quotas in order to encourage increased productivity;
    4. EEOC revisit its budget allocation process to determine ways that the process can
       be made more efficient and timely and to provide better controls designed to
       reduce the potential for fraud; and
    5. EEOC develop written procedures for processing voucher payments and develop
       and institute a consistent monitoring process for the District Offices that occurs
       throughout the fiscal year, not just at year-end.

Agency Compliance with the Federal Managers’ Financial Integrity Act

Agency policy directive EEOC Order 195.001 Management Accountability and Controls
requires the OIG to annually provide a written advisory to the head of the Agency
regarding whether the management control evaluation process complied with the Office
of Management and Budget (OMB) guidelines. The OIG issued its annual report to the
Chair on November 13, 2010, validating the Agency’s compliance with the Federal
Managers’ Financial Integrity Act (FMFIA). To make this determination, the OIG
reviewed:

           assurance statements submitted by headquarters and district office directors
            attesting that their systems of management accountability and control were
            effective and that resources under their control were used consistent with
            the Agency’s mission and in compliance with the laws and regulations set
            out in the FMFIA,
           all functional area summary tables and functional area reports submitted by
            headquarters and field offices, and
           the FY 2010 FMFIA assurance statement and assurance statement letter of
            the Office of Research, Information and Planning’s (ORIP’s), with
            supporting documents.

The OIG concluded that the Agency’s management control evaluation was conducted in
accordance with OMB’s standards and concurred with ORIP’s assertion that the Agency
had no material weaknesses during the reporting cycle.




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                   OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                        Equal Employment Opportunity Commission

NEW AND ONGOING AUDIT AND EVALUATION PROJECTS

Audit of EEOC’s FY 2011 Financial Statements

The OIG has contracted with Harper, Rains, & Knight to perform the FY 2011 financial
statement audit of the EEOC, which is required by the Accountability of Tax Dollars Act
of 2002. An entrance conference was held on February 17, 2011. Fieldwork will begin
in April 2011. OIG expects the audit opinion to be issued prior to November 15, 2011, to
meet OMB’s reporting deadline and for inclusion 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.


Internal Control Review of the Miami District Office

The OIG deferred issuing this internal review report pending the completion of an OIG
investigative review of allegations of misuse of government convenience checks and time
and attendance fraud. The deferred draft report will be released in the third quarter of FY
2011.

Management Advisory on EEOC’s Open Government Activities

The OIG initiated a progress review of the Agency’s success in implementing the
President’s 2009 open government initiative issued by the OMB (memorandum M10-06)
and referred to as the “Open Government Directive” (OGD). In general, M10-06
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. The OIG’s review is not a compliance review or a
comprehensive performance assessment. Rather, the review is intended to broadly assess
the Agency’s OGD activities to date, and provide observations for its consideration as it
proceeds to full implementation of the OGD. The OIG will issue draft and final reports
during the third quarter of FY 2011.




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                   OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                        Equal Employment Opportunity Commission

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
resolved findings and recommendations is essential to improving the effectiveness and
efficiency of Agency operations. Therefore, EEOC needs to review and enhance the
corrective action process to ensure the prompt resolution and implementation of audit
recommendations.

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. The following table shows reports issued during
this reporting period (October 1, 2010–March 31, 2011) that contained findings.

                    Reports Issued During This Reporting Period

 Fiscal     Report number                           Report title                        Date issued
  year
 2010        2010-04-FIN              FY 2010 Financial Statement Audit                  2/7/2011
                                          Management Letter Report
  2010       2010-03-FIN              FY 2010 Financial Statement Audit                 11/10/2010
  2010      2010-07-FISMA         Federal Information Security Management               11/1/2010
                                                   Act Report
  2010       2010-09-AEP         Evaluation of the Management of the EEOC’s             3/21/2011
                                           State and Local Programs

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 the Agency follow-up officials in April 2011. No
corrective action plans had been received since our meeting held in August 2010. The
OIG’s fall 2010 Semiannual Report to Congress disclosed no reviews with 52 open
recommendations. The OIG is reporting a total of 10 reviews with a total of 32 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 October 1, 2010 - March 31, 2011
                          Equal Employment Opportunity Commission

       Recommendations for Which Corrective Actions Have Not Been Completed

     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
         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
     2009     2009-04-FIN         FY 2009 Financial Statement Audit Report                11/13/2009

                                    Open Recommendations:
        The Chief Financial Officer (CFO), along with the Director of the Revolving Fund
         Division (RFD), review accrual procedures in place and refine these procedures to
         ensure that all revenue not earned at year end is properly classified as deferred in the
         financial statement.




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                     OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                          Equal Employment Opportunity Commission

     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.
        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.




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                     OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                             Equal Employment Opportunity Commission

     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:
             Develop a written plan, including a schedule, to ensure timely training for staff with
              major oversight assignments.
             Assess the Federal Sector Programs’ organizational structure based on the currently
              authorized positions in order to create more stability.
             Develop a plan with milestones for making MD-715 a Web-based submission process.
             Ensure that all agencies receive feedback from the Office of Federal Operations’ on
              MD-715 in time to fully prepare for FY 2008 submissions.
             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 October 1, 2010 - March 31, 2011
                               Equal Employment Opportunity Commission

     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 take 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.




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                        OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                          Equal Employment Opportunity Commission

     Fiscal
      year    Report number                     Report title                       Date issued
     2006      2006-04-FIN         FY 2006 Management Letter Report                02/09/2007
                                     Open Recommendations:
        Report headquarters offices to the Office of the Chair and field offices to the director
         of the Office of Field Programs for their noncompliance with the property certification
         policy.

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.




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                     OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
               Equal Employment Opportunity Commission


        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 Inquiries Received
                  October 1, 2010–March 31, 2011

                       Allegations             Number
                                                         224
               Charge Processing
                                                          46
               Other Statutes
                                                         182
               Title VII
                                                           1
               Mismanagement
                                                           1
               Ethics
                                                          13
               Backgrounds
                                                           3
               Theft
                                                          39
               Threats
               Fraud                                       4
               Other Criminal                             10
               Violations
               Congressional Inquiries                     2

                                                         525
               Total




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          OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011
                        Equal Employment Opportunity Commission

COMPLETED INVESTIGATIONS

Mail Fraud

The OIG conducted an investigative review of a suspicious survey sent to numerous
United States postmasters in the Kansas City, Kansas area. The survey requested
responses to questions about sexual relationships with subordinate employees.
Upon determining that the matter was being investigated by the United States Postal
Inspection Service (USPIS), the OIG deferred its investigation to the USPIS and closed
the matter.

Check Fraud

The OIG conducted an investigation into allegations of fraud related to the misuse of
government convenience checks, mismanagement, and time and attendance fraud in an
Agency district office. Based on an OIG internal control review of the office, and action
taken by Agency management to install new leadership in the office, the OIG determined
that further investigative action was unwarranted. The allegations of mismanagement
were addressed by the Agency. The OIG closed the matter.

Misuse of a Government Vehicle

The OIG received an allegation that a district office employee was using a government
owned vehicle to transport drugs. The anonymous complainant further alleged that the
employee was stealing government computers and equipment, and trading them for
narcotics. The OIG conducted a preliminary inquiry of the matter which included
conferring with a local law enforcement drug task force. The complaint was closed due to
insufficient evidence to support the allegation.

Misuse of the Government Travel Card

The OIG received a complaint alleging misuse of the Citibank government travel card by
an employee prior to and following the employee’s separation from the Agency. The
employee used the travel card to pay for personal telephone services and made cash
withdrawals. The OIG documented approximately $3,000 in unauthorized spending.
The employee retired before paying the debt and subsequently became delinquent in
payment of the debt. The OIG contacted the Assistant United States Attorney (AUSA)
for the district to address the misuse by the employee. The AUSA declined to prosecute
in the matter. The OIG proposed that Citibank take civil action against the employee to
recover the debt.




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                        Equal Employment Opportunity Commission



Fraud

The OIG received numerous complaints involving the solicitation for advertisement by
an Internet magazine. The solicitation implied that the EEOC supported the magazine,
and that companies would be violating the law by not placing an advertisement in the
magazine. The OIG conducted a preliminary investigation to determine whether further
evidence could be obtained. The OIG succeeded in identifying potential victims of this
illegal scheme and referred the matter to the Federal Bureau of Investigation (FBI). The
matter was closed following the referral.

Loss of Personally Identifiable Information (PII)

The Office of Inspector General received a complaint involving the possible release of
personally identifiable information (PII) in an Agency district office. The preliminary
investigation revealed the PII had been posted on an Agency shared drive. The share
drive is an internal drive accessed through the Agency Local Area Network (LAN). The
complaint alleged contractors or temporary employees within the district office could
have obtained the information for illegal activity. The OIG contacted the Agency PII
Core Management Group and alerted it of the potential loss of PII. The Agency took
appropriate action as prescribed by the U.S. Computer Emergency Readiness Team (US
CERT).

ONGOING INVESTIGATIVE ACTIVITES

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




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OTHER OIG PROGRAM ACTIVITIES
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 did not receive any 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 III).

OIG Implementation of New Telework Policy in Compliance with the President’s
Telework Enhancement Act of 2010

The success of the OIG’s 2005 telework pilot and the enactment of the President’s
Telework Enhancement Act of 2010 provided the framework for the new telework
program. The OIG implemented a new office wide telework policy in an effort to
improve its continuity of operations, promote management effectiveness and enhance
work-life balance.

In recent years, the OIG participated in a telework pilot program as an experiment to see
how well the telework concept works for the organization and its employees. The OIG’s
objective during the pilot was to determine whether telework would result in improved
efficiency in its use of office space, without negative impacts on the quality of our work.
Participants in the pilot were required to work a minimum of four days per pay period
from an approved telework site.

On December 9, 2010 President Obama signed the Telework Enhancement Act of 2010.
This act provides a framework for federal agencies to better leverage technology and to
maximize the use of flexible work arrangements, which will aid in recruiting new Federal
workers, help retain valuable talent and allow the Federal government to maintain
productivity in various situations including those involving national security and other
emergency situations. In order to maximize the impact of this new law, agencies are
expected to coordinate with the U.S. Office of Personnel Management (OPM) to help
with efforts to build effective telework programs with three key objectives in mind:

     1. Improve Continuity of Operations (COOP) - use telework as a strategy to keep
        government operational during inclement weather or other emergencies.




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                         Equal Employment Opportunity Commission

     2. Promote Management Effectiveness-use telework to target reductions in
        management costs related to employee turnover and absenteeism, and to reduce
        real estate costs, environmental impact, and transit costs.

     3. Enhance Work-life Balance- use telework to allow employees to better manage
        their work and family obligations, retaining a more resilient Federal workforce
        able to better meet Agency goals.

The OIG’s telework program was implemented in February, 2011 in accordance with
guidelines and recommendations provided by OPM on the Telework Enhancement Act of
2010.




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                         Equal Employment Opportunity Commission



     APPENDIX I. FINAL OFFICE OF INSPECTOR GENERAL
            AUDIT AND EVALUATION REPORTS

                                                                    Funds Put
                                                    Questioned                    Unsupported
         Report Title              Date issued                       to Better
                                                      costs                          costs
                                                                        use
FY 2010 Financial Statement       11/12/2010
Audit                                                         $0             $0            $0

FY 2010 Financial Statement       2/7/2011
Audit Management Letter                                       $0             $0            $0

Federal Managers’ Financial       11/10/2010
Integrity Act                                                 $0             $0            $0

Evaluation of the Management      3/21/ 2011
of EEOC’s State and Local                                     $0             $0            $0
Programs




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     APPENDIX II. INDEX OF REPORTING REQUIREMENTS


Inspector General
                                        Reporting requirements                             Page
   Act citation

Section 4(a)(2)      Review of Legislation and Regulations                               NA
Section 5(a)(1)      Significant Problems, Abuses, and Deficiencies                      6-15


                     Recommendations with Respect to Significant Problems,
Section 5(a)(2)                                                            6-15
                     Abuses, and Deficiencies


                     Significant Recommendations Included in Previous Reports
Section 5(a)(3)                                                               11-15
                     on Which Corrective Action Has Not Been Completed

Section 5(a)(4)      Matters Referred to Prosecutorial Authorities                       17-18
Section 5(a)(5)      Summary of Instances in which Information Was Refused               NA
Section 5(a)(6)      List of Audit Reports                                               10
Section 5(a)(7)      Summary of Significant Reports                                      2-3
Section 5(a)(8)      Questioned and Unsupported Costs                                    21
Section 5(a)(9)      Recommendations That Funds Be Put to Better Use                     21


                     Summary of Audit Reports Issued Before the Commencement
Section 5(a)(10)     of the Reporting Period for Which No Management Decision 11
                     Has Been Made



                     Significant Management Decisions That Were Revised
Section 5(a)(11)                                                        NA
                     During the Reporting Period

                     Significant Management Decisions with Which the OIG
Section 5(a)(12)                                                         NA
                     disagreed




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          APPENDIX III. SINGLE AUDIT ACT REPORTS


None issued.




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                          Equal Employment Opportunity Commission




     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


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                     OIG Semiannual Report to Congress October 1, 2010 - March 31, 2011