oversight

Semi-annual report: Apr-Sep 2012

Published by the Equal Employment Opportunity Commission, Office of Inspector General on 2012-11-01.

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, 2012, to September 30, 2012




                        Milton A. Mayo, Jr.
                        Inspector General
                     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.
CONTENTS

A Message from the Inspector General                                                         4

Executive Summary                                                                            5

Introduction                                                                                  7

The Audit and Evaluation Program                                                             10
Completed Projects
New and Ongoing Audit Projects
New and Ongoing Evaluation Project
Audit Follow-Up

The Investigation Program                                                                    21
Investigative Inquiries
Completed Investigations
Ongoing Investigative Activities

Appendixes                                                                                   24
Appendix I. 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: April 1, 2012–September 30, 2012
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OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
                        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, 2012, through September 30, 2012, 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.

As I have stated previously, I am thankful and honored to serve with a team of professionals who
consistently manage to meet the challenges of the Office of Inspector General’s (OIG’s) mission,
guided by a passion for public service and an unrelenting commitment to pursuing and
maintaining the highest professional standards. I commend them for their dedication and applaud
their professionalism and patriotism.

The OIG experienced a productive six months. Although lacking essential staff, the OIG
completed three investigations, received and processed 485 investigative inquiries, and
conducted various audit and evaluation activities. Included among the audit and evaluation
projects is the external peer review of the Architect of the Capitol (AOC). We have launched
three important new program reviews which we believe will provide the Equal Employment
Opportunity Commission (EEOC) with opportunities to advance its efforts in improving overall
organizational performance and effectiveness in FY 2013 and beyond.

We look forward to continuing to work with the Agency’s senior leadership, the Commissioners,
and the EEOC community at-large as we advance EEOC’s efforts to improve its efficiency and
effectiveness in carrying out its mission to stop and remedy unlawful employment
discrimination, and to realize its vision of full justice and equality in the workplace.




Milton A. Mayo Jr.
Inspector General




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                       OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
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, 2012, through September 30, 2012.

During the reporting period, the OIG conducted an external audit peer review, closed
three investigative matters, and received 485 inquiries, of which 231 were charge-
processing issues, 183 were Title VII complaints, and 71 were other investigative
allegations.

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

     The OIG contracted with Harper, Rains, Knight & Company, P.A., to perform
      the 2012 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, 2012, to meet the Office of
      Management and Budget’s (OMB’s) deadline and to be included in the
      Agency’s 2012 Performance and Accountability Report.
     The OIG contracted with Clifton Gunderson, LLP, to perform an independent
      evaluation of EEOC’s information security program and selected EEOC
      systems for compliance with the Federal Information Security Management Act of
      2002 (FISMA) and the OMB’s reporting requirements for inspectors general
      contained in OMB Memorandum M-10-15. Fieldwork is under way and is
      scheduled to be completed by November 15, 2012, to meet the OMB reporting
      deadline.
     The OIG conducted an independent assessment of the Agency’s management
      control evaluation process to determine whether it was carried out in accordance
      with OMB standards. The OIG expects to issue the assessment to the Chair prior
      to the reporting deadline of November 15, 2012, for inclusion in the Agency’s
      2012 Performance and Accountability Report.
       The OIG has contracted with Harper, Rains, Knight & Company, P.A., to
        conduct an audit of the Agency’s commercial purchase card program. Fieldwork
        began in fiscal year (FY) 2012, and a final report is expected during the first
        quarter of FY 2013.
     The OIG contracted with the Urban Institute, a nonprofit organization located in
      Washington, D.C., to evaluate EEOC’s performance measures in the EEOC FY
      2012–2016 Strategic Plan. The evaluation will focus on how well the
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                      OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
       performance measures align with critical Agency goals and activities, and
       whether performance measures should be improved. The draft and final reports
       are scheduled to be issued during the second quarter of FY 2013.
     Closed investigations included cases involving two conflict-of-interest matters and
      a falsification of charge files.

     Ongoing investigations continue in several field offices, involving the Federal
      Employee Compensation Act (FECA), conflicts of interest, falsification of
      government records, and other matters.




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                      OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
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: 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’s 1988 amendments to the Inspector General Act of 1978 established
an Office of Inspector General (OIG) at 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 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, 2012–September 30, 2012
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 fraud, waste, 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, 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.

The Agency provided resources to fill the vacant former management analyst position
[now Chief Technology Officer (CTO)], which had been vacant since April 2010. The
newly selected CTO is scheduled to report for duty in early November 2012, bringing
much needed relief to the OIG in this functional area. However, the deputy inspector
general position remains unfilled and continues to create significant day-to-day and
strategic operational challenges for the OIG. The Deputy Inspector General position, the
first-line supervisor for the OIG’s auditors, evaluators, and investigators, has been vacant
since May 2011. Additionally, at the close of the period the OIG’s staff auditor was
offered and accepted a promotion with another Federal OIG, reducing our audit function
by fifty-percent and creating another staff vacancy at the beginning of the first quarter of
FY 2013. The continued vacancy in the important DIG leadership position, coupled with
the departure of the staff auditor, portends a potential threat to the OIG’s ability to meet
its legislative and other mission critical mandates.




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                      OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
OIG Strategic Planning

As the first step toward developing a new OIG strategic plan, which aligns with the new
EEOC strategic plan (FY 2012-2016), the OIG developed a draft strategic framework.
The OIG will finalize the framework in the first quarter of FY 2013, and will issue a
formal strategic plan for FY 2014-2016 in September 2013.




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                     OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
                 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

External Peer Review of the Architect of the Capitol (OIG Report No. 2012-06-
PEER)

During FY 2012, the EEOC OIG conducted an external peer review of the audit
organization of the U.S. Architect of the Capitol (AOC) Office of Inspector General
(OIG). On July 31, 2012, the EEOC OIG issued its report and found that the AOC OIG
system of quality control for its audit organization in effect for the year ended March 31,
2012 was suitably designed and provides the AOC OIG with reasonable assurance of
performing and reporting in conformity with applicable professional standards in all
material respects. There are no outstanding recommendations from this peer review
report.

 Fiscal        Report                                                                          Date
                                                  Report Title
 Year         Number                                                                          Issued
 2012         2012-06-        System Review Report on the Architect of the                  07/31/2012
               PEER            Capitol’s Office of Inspector General Audit
                                              Organization


NEW AND ONGOING AUDIT PROJECTS
FY 2012 Audit of the Consolidated EEOC Financial Statements
The OIG contracted with Harper, Rains, Knight & Company, P.A., to perform the FY
2012 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, 2012, to meet the Office of Management and Budget’s
(OMB’s) deadline and to be included in the Agency’s 2012 Performance and
Accountability Report. Additionally, the auditor will issue a management letter report
identifying any internal control weaknesses shortly thereafter.




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                      OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
FY 2012 Federal Information Security Management Act Audit
The OIG contracted with Clifton Gunderson, LLP (aka CliftonLarsenAllen LLP), to
perform an independent evaluation of EEOC’s information security program and
selected EEOC systems for compliance with the Federal Information Security
Management Act of 2002 (FISMA) and the OMB’s reporting requirements for IGs
contained in OMB Memorandum M-10-15. Fieldwork is under way and is scheduled to
be completed by November 15, 2012, to meet the OMB reporting deadline.


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
complied with OMB guidelines. The OIG’s independent assessment is to determine
whether the Agency’s management control evaluation process was carried out in
accordance with OMB standards during the previous year. 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 2012 Federal
       Managers’ Financial Integrity Act (FMFIA) Assurance Statement and Assurance
       Statement Letter, with supporting documents.

The OIG will report its findings prior to November 15, 2012, for inclusion in the
Agency’s 2012 Performance and Accountability Report.

FY 2012 Audit of the EEOC Commercial Purchase Card Program

The OIG has contracted with Harper, Rains, Knight & Company, P.A., to conduct an
audit of the Agency’s commercial purchase card program. This is the OIG’s first audit of
the program and, in part, is being conducted as an audit program best practice, and to
provide the OIG and the Agency with useful data, observations, and recommendations for
preparation in meeting the new requirements of the Government Charge Card Abuse Act
of 2012. The objectives of the audit are:

      To determine whether internal controls are in place to detect and prevent fraud,
       waste, abuse, and misuse in EEOC’s purchase card program;


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                       OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
      To evaluate the effectiveness of the processes and procedures relating to EEOC’s
       issuing, monitoring, and providing training on the use of the purchase cards/
       convenience checks, and to determine whether training provided to employees
       having responsibilities for purchase cards/convenience checks is adequate;

      To determine whether EEOC’s purchase card/convenience checks program is
       operating in compliance with laws and regulations.

Fieldwork began in FY 2012, and a draft report is expected during the first quarter of FY
2013.

Audit Follow-up Program Review

The OIG is continuing to conduct the Audit Follow-up Program (AFP) review initiated in
the previous reporting period. The review is designed to determine whether the policies,
procedures, and practices utilized by EEOC in administering its AFP are sufficient to
expeditiously resolve audit recommendations resulting from OIG audit activities, as well
as external reviews performed by the Government Accountability Office (GAO), other
executive branch audit organizations, and nongovernmental audit organizations. The
completion of the work and the issuance of the report have been delayed by the departure
of the lead auditor assigned to the project. OIG expects to issue a draft report during the
next semiannual reporting period.

NEW AND ONGOING EVALUATION PROJECTS

EEOC Strategic Plan and Performance Management
During the previous reporting period, the OIG initiated a review designed to assess the
efficacy of EEOC’s newly adopted FY 2012-2016 strategic plan, as well as the Agency’s
progress towards its implementation. Based upon our initial review of the plan, which
contains 14 performance measures, many of which were not in EEOC’s previous
strategic plan, we determined that a more narrowly focused assessment of key
performance measures, including how well they align with critical Agency goals and
activities would provide greater value to EEOC management, customers, and
stakeholders. Accordingly, the OIG contracted with the Urban Institute, a nonprofit
organization located in Washington, D.C., to evaluate EEOC’s performance measures. In
addition to focusing on the alignment of the measures, the evaluation should provide
insight on whether there are opportunities to improve the measures during the early
stages of its implementation. Key areas of the evaluation include:

      Does EEOC have performance measures for its key strategic goals and objectives?



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                      OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
      Are the performance measures effective measures of the Agency’s progress in
       achieving its strategic goals and objectives?
      Are the performance measures objective, understandable (to all stakeholders), and
       outcome-based?

The draft and final reports are scheduled to be issued during the second quarter of FY
2013.

Management of Private-Sector Enforcement Activities

EEOC’s primary activity is enforcement of private-sector employment discrimination
laws. The OIG contracted with IMPAQ, LLC, of Columbia, Maryland, to conduct a
review of evaluations and similar studies concerning EEOC’s private-sector enforcement
activities. The evaluation will focus on whether these studies may provide EEOC’s
workforce with opportunities to improve the efficiency and effectiveness of the
disposition of charges. The scope of the evaluation will focus on determining whether
new and useful conclusions or recommendations regarding enforcement activities can be
drawn by analyzing studies from 1996 to the present. The draft and final reports are
scheduled to be issued during the second quarter of FY 2013.

Open Government and Transparency

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. During the
current period, the OIG initiated a progress review of Open Government activities. The
OIG’s progress review focuses on EEOC Open Government and related activities from
July 16, 2011, to the present. The OIG report is scheduled to issue in the first quarter of
FY 2013.

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.




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                      OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
Reports Issued During This Reporting Period

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. There were no reports issued.

Recommendations for Which Corrective Actions Have Not Been Completed

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 September 2012. The OIG
is reporting a total of 12 reviews with 48 open recommendations for this reporting period.
The tables show those recommendations for which corrective action has not been
completed.


     Fiscal     Report
                                                      Report Title                           Date Issued
     Year       Number
     2011     2011-03-FIN      FY 2011 Financial Statement Management Letter                 12/15/2011
                                                   Report

                                     Open Recommendations:
        Conduct more thorough inspections of submitted property reports to ensure that
         property is correctly reported as to type, location, and proper inclusion on sensitive
         property reports.
        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.
        Establish a policy and procedure to perform internal audits of the EEOC’s electronic
         official personnel file (eOPF) system to ensure proper implementation and application
         of all Office of Personnel Management (OPM) and EEOC policies and procedures
         regarding the recording and maintenance of official personnel records.




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                       OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
     Fiscal      Report
                                                       Report Title                           Date Issued
     Year       Number
     2011       2011-05-               FY 2011 Federal Information Security                   11/17/2011
                 FISMA                  Management Act (FISMA) Report

                                     Open Recommendations:
        Implement a centralized repository to maintain control of access request forms.
        Implement multifactor authentication for network access for nonprivileged accounts.
        Reevaluate and update the Agency’s Business Impact Analysis to ensure that it
         accurately represents the current EEOC environment and addresses the deficiencies
         noted in the disaster recovery tests.
        Apply software security patch releases on a timely basis to protect against known
         vulnerabilities.
        Follow Federal guidance in applying critical patch updates on required timelines to
         ensure that the systems are not left susceptible to known vulnerabilities.
        Perform credential scans.
        Remove virtual private network (VPN) accounts of separated employees and
         contractors and adhere to Agency policy. A recertification of accounts should be
         performed to ensure that only active employees have active accounts.


     Fiscal     Report
                                                       Report Title                           Date Issued
     Year       Number
     2010     2010-04-FIN       FY 2010 Financial Statement Audit Management                   2/7/2011
                                                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 that property is
           correctly reported as to type and location.
          Establish a policy to perform internal audits of the EEOC eOPF system to ensure
           proper implementation and application of all OPM and EEOC policies and procedures
           regarding the recording and maintenance of official personnel records.
          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.



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                        OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
     Fiscal      Report
                                                       Report Title                           Date Issued
     Year       Number
     2010       2010-07-          Federal Information Security Management Act                  11/1/2010
                 FISMA                               Report

                                    Open Recommendations:
        Develop and improve vulnerability scanning capability and incorporate the results of
         scanning into the Plan of Action and Milestones (POA&M) process.
        Implement multifactor authentication.
        Ensure that procedures are followed for disabling accounts no longer needed.


     Fiscal      Report
                                                       Report Title                           Date Issued
     Year       Number
     2010     2010-09-AEP         Evaluation of the Management of the EEOC’s                   3/21/2011
                                            State and Local Programs

                                        Open Recommendations:
          Develop and implement strategic performance goals and objectives that are reflective
           of the program, measurable, and in accordance with the requirements of the
           Government Performance and Results Act (GPRA).
          Work with the Chief Financial Officer 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 wider audience in a more efficient and cost-effective manner.
          Perform a full assessment of the cost for resolution and intakes, reassess the current
           payment amounts and case quotas, and consider making appropriate adjustments to the
           payment amounts and budgeted quotas in order to provide a fee that covers a greater
           percentage of the cost of case processing.
          Request additional funds to provide incentive payments to FEPAs to go beyond their
           case quotas in order to encourage continued productivity.
          Revisit the FEPA 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 is
           carried out 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.


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                        OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
       Fiscal       Report
                                                      Report Title                           Date Issued
       Year        Number
       2009        2009-05-    FY 2009 Financial Statement Audit Management                   1/12/2010
                     FIN                       Letter Report

                                     Open Recommendations:
        Ensure that every user account is 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 (OIT’s)
         Controls for Creating, Changing, and Terminating System Account Policy; and 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.)
        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 standards. (Finding repeated in FY 2010 management letter.)
        Develop and implement policies and procedures for outsourced applications to ensure
         that application security violations are appropriately reviewed and reported. (Finding
         repeated in FY 2010 management letter.)


     Fiscal        Report
                                                      Report Title                           Date Issued
     Year         Number
     2008       2008-13-AEP     Independent Evaluation of Agency Compliance                   9/24/2008
                                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.




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                       OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
     Fiscal      Report
                                                      Report Title                           Date Issued
     Year       Number
     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 EEOC.
        Develop, document, and implement a formal process for ensuring that all new privacy-
         related laws and regulations are evaluated to determine whether 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     Report
                                                      Report Title                           Date Issued
     Year       Number
     2009     2008-06-FIN      FY 2008 Financial Statement Audit Management                   2/12/2009
                                               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.)




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                       OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
     Fiscal      Report
                                                       Report Title                           Date Issued
     Year       Number
     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
         assessments with their annual MD-715 submissions.



     Fiscal      Report
                                                       Report Title                           Date Issued
     Year       Number
     2007     2007-12-AMR         Evaluation of EEOC Field Office Continuity of                3/27/2008
                                            Operations (COOP) Plans

                                      Open Recommendations:
        Ensure that all field office staff members take the continuity of operations (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      Report
                                                       Report Title                           Date Issued
     Year       Number
     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 the 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.

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                        OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
      Seek professional assistance to develop a more effective budgeting method for
       projecting financial information used to plan training events and monitor goals.



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. There are no audit or evaluation reports that the OIG issued before the
reporting period began for which no management decision has been made.




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                     OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
     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, 2012–September 30, 2012

               Allegations                       Number

     Charge Processing                                        231

     Other Statutes                                             30

     Title VII                                                183

     Mismanagement                                               1

     Ethics Violations                                           1

     Backgrounds                                                 7

     Theft                                                       5

     Threats                                                     3

     Fraud                                                       5

     Other Criminal Allegations                                 17

     Congressional Inquiries                                     2

     Total                                                    485



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         OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
COMPLETED INVESTIGATIONS
Conflict of Interest

The OIG was referred an allegation from the Office of Legal Counsel, resulting from its
review of the Financial Disclosure Report filed by an Agency employee, for possible
violation of Title 18 U.S.C. §208. During the course of the investigation, the OIG
reviewed the investigative files on the charge of discrimination, conducted interviews
with the assigned investigators for the specific case files, and interviewed the supervisory
investigator. Based upon the evidence, we determined that the Agency employee had not
participated “personally and substantially” in the discrimination cases in question. The
employee’s actions were strictly perfunctory or administrative in nature, and did not
influence the disposition of the charges. The matter was closed.

Falsification of Charge Files

The OIG received a complaint that an Agency employee willingly and knowingly
falsified a discrimination charge file, presumptively in violation of Title 18 U.S.C. §1001,
by improperly coding the case determination to incorrectly reflect the outcome as having
resulted in a mediation, where, in fact, no mediation had taken place. Our investigation
disclosed that while no mediation occurred, and that the subject admitted to coding the
closure as a mediation, there was no evidence that the subject acted with intent to
willfully and knowingly falsify the charges. Rather, it appears that the employee
erroneously believed that the codes used were appropriate under the circumstances.
Moreover, the evidence demonstrated that there was a lack of clarity and consistency
among staff regarding the use of certain codes, and that other Agency personnel used the
same codes under similar circumstances. Thus, the OIG determined that the evidence
adduced from the investigation failed to support a conclusion that the employee’s actions
constituted a false statement in violation of Title 18 U.S.C. §1001.

Conflict of Interest

The OIG completed its investigation of allegations of conflict of interest concerning an
employee’s involvement in employment discrimination investigations of companies in
which the employee may have had a financial interest. Title 18 U.S.C. §208 prohibits any
government employee from participating personally and substantially, as a government
officer or employee, in investigations and other proceedings in which, to his or her
knowledge, the employee or the employee’s spouse or minor child has a financial
interest. Based upon the evidence uncovered during its investigation, the OIG found no
violation of Title 18 U.S.C. §208 in connection with the employee’s involvement in the
investigations and case resolutions.



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                       OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
ONGOING INVESTIGATIVE ACTIVITES
The OIG is conducting ongoing investigations involving ethics violations, conflicts of
interest, fraud, mismanagement, falsification of government records, impersonation of a
Federal official, theft of government property, misuse of computers, and threats against
the Agency.




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                     OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
APPENDIX I. FINAL OFFICE OF INSPECTOR GENERAL
AUDIT AND EVALUATION REPORTS


                                                                          Funds Put
                                                        Questioned                           Unsupported
        Report Title                 Date Issued                           to Better
                                                          Costs                                 Costs
                                                                              Use
External Peer Review of the
Architect of the Capitol               7/31/2012                    $0              $0                $0




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                       OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
APPENDIX II. INDEX OF REPORTING REQUIREMENTS


Inspector General
                                        Reporting Requirements                              Page
   Act Citation

Section 4(a)(2)     Review of Legislation and Regulations                                  N/A
Section 5(a)(1)     Significant Problems, Abuses, and Deficiencies                         N/A
                    Recommendations with Respect to Significant Problems,
Section 5(a)(2)                                                           N/A
                    Abuses, and Deficiencies
                    Significant Recommendations Included in Previous Reports
Section 5(a)(3)                                                              14–20
                    on Which Corrective Action Has Not Been Completed
Section 5(a)(4)     Matters Referred to Prosecutorial Authorities                          N/A
Section 5(a)(5)     Summary of Instances Where Information Was Refused                     N/A
Section 5(a)(6)     List of Audit Reports                                                  10
Section 5(a)(7)     Summary of Significant Reports                                         10
Section 5(a)(8)     Questioned and Unsupported Costs                                       24
Section 5(a)(9)     Recommendations That Funds Be Put to Better Use                        N/A
                    Summary of Audit Reports Issued Before the Commencement
Section 5(a)(10)    of the Reporting Period for Which No Management Decision N/A
                    Has Been Made
                    Significant Management Decisions That Were Revised
Section 5(a)(11)                                                       N/A
                    During the Reporting Period
                    Significant Management Decisions with Which the Office of
Section 5(a)(12)                                                              N/A
                    Inspector General Disagreed




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                     OIG Semiannual Report to Congress: April 1, 2012–September 30, 2012
APPENDIX III. 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 30 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.


                        SINGLE AUDIT ACT REPORTS


 The Government of the District of Columbia,             The Tribal Council Cherokee Nation,
 September 30, 2010                                      September 30, 2010
 The State of Louisiana, June 30, 2011                   The State of Oregon, June 30, 2011
 The State of West Virginia, June 30, 2011               The State of Alaska, June 30, 2011
 The State of Kentucky, June 30, 2011                    The State of Kansas, June 30, 2010
 The State of Indiana, June 30, 2011                     The State of Oklahoma, June 30, 2010
 The State of Arizona, June 30, 2011                     The State of Missouri, June 30, 2010
 The State of California, June 30, 2011                  The State of Tennessee, June 30, 2011
 The State of Nevada, June 30, 2011                      The State of Vermont, June 30, 2011
 The City of New York, June 30, 2011                     The State of Pennsylvania, June 30, 2011
 The State of New Hampshire, June 30, 2011               The State of New Jersey, June 30, 2011
 The State of Massachusetts, June 30, 2011               The State of Maryland, June 30, 2011
 The State of New York, March 31, 2011                   The State of Ohio, June 30, 2011
 The State of Pennsylvania, June 30, 2010                The State of South Dakota, June 30, 2011
 The State of Colorado, June 30, 2011                    The State of Delaware, June 30, 2011
 The State of Nebraska, June 30, 2011                    The State of Maine, June 30, 2011




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