oversight

Semi-annual report: Apr-Sep 2013

Published by the Equal Employment Opportunity Commission, Office of Inspector General on 2013-11-06.

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, 2013-September 30, 2013

                      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                                             11

Completed Projects
New and Ongoing Audit and Evaluation Projects
Audit Follow-up

The Investigation Program                                                    23

Investigative Inquiries
Completed Investigative Activities
Ongoing Investigative Activity

Appendixes                                                                   26

Appendix I. Final Office of Inspector General Audit and Evaluation Reports
Appendix II. Index of Reporting Requirements
Appendix III. Single Audit Act Report
This page intentionally left blank
                          Equal Employment Opportunity Commission




                    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, 2013 through September 30, 2013, 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.

During this period, the OIG issued one final audit/evaluation report, completed three
investigations, and received 790 investigative inquiries, of which 329 were charge
processing issues, 352 were Title VII complaints, and 109 were other investigative
allegations.

The OIG staff remains resolute in our commitment to our mission and the U.S. Equal
Employment Opportunity Commission’s efforts to achieve Justice and Equality in the
Workplace.

As always, we appreciate the support and cooperation of Chair Jacqueline A. Berrien, the
Commissioners, and employees of the Commission.

Respectfully,



Milton A. Mayo Jr.
Inspector General
November 6, 2013




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                OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         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 April 1, 2013, through September 30, 2013.

During this period, the OIG issued one final audit/evaluation report, completed three
investigations, and received 790 investigative inquiries, of which 329 were charge
processing issues, 352 were Title VII complaints, and 109 were other investigative
allegations.

Included among the OIG’s completed, newly initiated, and ongoing audit, evaluation and
investigative projects are:

     A review of evaluations and similar studies of the EEOC’s private-sector
      enforcement activities, conducted by IMPAQ, LLC. The evaluation made several
      recommendations to EEOC to improve the efficiency and effectiveness of the
      disposition of charges.

     Completed several investigations involving a variety of allegations, including
      falsification of investigative file documents, and the improper processing of
      discrimination charges, and misuse of government equipment in the furtherance of
      a federal tax fraud scheme.

     The OIG issued an advisory to the Agency involving the misuse of a government
      travel card by an employee who used the card for 73 personal cash advances,
      gasoline, food and other items between August 2012 and June 2013.

     The OIG contracted with Harper, Rains, Knight & Company, to perform the 2013
      financial statement audit of the EEOC.

     The OIG contracted with Brown and Company, PLLC to perform an independent
      evaluation of EEOC's information security program for compliance with the
      Federal Information Security Management Act of 2002 (FISMA).

     The OIG contracted with Williams, Adley & Company-DC, LLP to conduct a
      performance audit of the EEOC Personnel Security Program.




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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         Equal Employment Opportunity Commission

     Ongoing investigations continue in several field offices involving ethics
      violations, conflicts of interest, fraud, mismanagement, falsification of government
      records, impersonation of a Federal official, misuse of travel and purchase cards,
      and theft.




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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         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.

The 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.

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

The Office of Inspector General

The U.S. Congress established the Office of Inspector General (OIG) at the EEOC
through the 1988 amendments of the Inspector General Act of 1978, which expanded
authority to designated Federal entities to create independent and objective OIGs. Under
the direction of the Inspector General (IG), the OIG meets this statutory responsibility by
conducting and supervising audits, evaluations, and investigations relating to the
programs and operations of the Agency; providing leadership and coordination; and
recommending policies for activities designed to promote economy, efficiency, and
effectiveness in the administration of programs and operations.




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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         Equal Employment Opportunity Commission

In October 2008, Congress passed the Inspector General Reform Act of 2008, which
generally buttressed the independence of IGs, increased their resources, and held them
more accountable for their performance. The OIG is under the supervision of the IG, an
independent EEOC official subject to the general supervision of the Chair. The IG must
not be prevented or prohibited by the Chair or any other EEOC official from initiating,
carrying out, or completing any audit, investigation, evaluation, or other inquiry or from
issuing any report.

The IG provides overall direction, coordination, and leadership to the OIG; is the
principal advisor to the Chair in connection with all audit and investigative matters
relating to the prevention, identification, and elimination of waste in any EEOC program
or operation; and recommends the proper boundaries of audit and investigation
jurisdiction between the OIG and other EEOC organizations. The IG also develops a
separate and independent annual budget for the OIG; responds directly to inquiries from
the public, Congress, or the news media; and prepares press releases, statements, and
other information about the OIG’s activities.

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 DIG provides overall direction, program guidance, and
supervision to the AEIP. The AEIP staff conducts audits, evaluations, and investigations
of EEOC operations and activities and prepares reports for issuance to 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 positions, the OIG staff includes a chief technology officer, an
evaluator, one auditor, two criminal investigators, an administrative specialist, and a
confidential support assistant.

As previously reported the Office of Inspector General has vacancies in two key
positions, Deputy Inspector General and Staff Auditor, which represents a fifty percent
reduction in the audit. Since January 2010, the OIG has had at least two vacancies in key


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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         Equal Employment Opportunity Commission

staff positions, including either the Chief Technology Officer, Inspector General, or the
Deputy Inspector General position. In 2012, the OIG filled the Chief Technology Officer
position, while the Deputy Inspector General has remained vacant since May 2011. The
staff auditor position has been vacant since October 2012. The continued vacancy in this
position reduces the OIG’s capacity to perform legislatively required audits, hinders
initiating discretionary audits, and hampers the OIG audit organization’s ability to meet
external obligations including responding to congressional inquiries and fulfilling certain
responsibilities it has to the Council of the Inspectors General on Integrity and Efficiency,
such as conducting audit peer reviews of other Designated Federal Entities (DFE).

Since January 2010, the Counsel to the Inspector General has served as the Acting
Deputy Inspector General, in addition to her counsel duties which include the day-to-day
oversight of the OIG’s investigative program. As noted in previous semiannual reports,
this DIG vacancy adversely impacts the qualitative managerial review needed to ensure
that OIG work products are of a consistently high caliber. The OIG can no longer
continue to operate at the current staffing level without severely risking its ability to meet
mission critical responsibilities.

During this reporting period, the OIG completed a draft of its first Information
Technology Work Plan (ITWP). This ITWP will guide OIG efforts in planning future IT
Evaluation/Audit projects as well as internal OIG IT infrastructure initiatives. The ITWP
will be incorporated as part of the overall OIG Work Plan.

Among the critical pillars of the ITWP is its focus on discovering and developing
methodologies to improve and sustain successful collaboration among staff in an
environment trending towards increased mobilization. During the past several years, the
OIG has explored various uses of information technology to improve collaboration
among staff. This includes the testing of a cloud-based project management system;
converting to an investigative management and tracking system with remote access; the
phased implementation of an automated audit tracking system; and the use of cloud-based
meeting and conferencing tools such as GotoMeeting.

While this initiative is reliant upon technology, it is not technology-driven. OIG
strategically incorporates technology to improve its business processes, practices,
planning, collaboration, and products rather than adopting new and emerging
technologies simply because they are deemed to be on leading edge, but may be ill-suited
to our mission, vision, and organizational culture.

In addition:
     The OIG began implementing phase two of the System Development Lifecycle for
       the OIG’s automated audit tracking system. Phase three work should commence
       during third quarter FY 2014, and phase four (operations and maintenance) during
       the fourth quarter FY 2014.


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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                          Equal Employment Opportunity Commission



      The OIG began upgrading the operating system and database of its investigative
       case management system. Work should be completed on these upgrades during the
       second quarter FY 2014.

      The OIG is in phase two of developing a new OIG Website. The new website will
       be used as a mechanism to provide: (1) greater transparency of the operations of
       the OIG by enhancing access to audit and evaluation reports and other public
       documents; (2) an improved electronic portal for the public to report fraud, waste,
       and abuse; and (3) a medium to implement the use of social media to boost our
       ability to reach and inform our stakeholders about the OIG’s vision, mission, and
       operations. Work began on this project in the fourth quarter FY 2013, and should
       be completed by the end of the second quarter FY 2014.




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                OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                          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

Review of Evaluations (OIG Report No. 2012-09-REV)

The EEOC is responsible for enforcing private-sector employment discrimination laws.
Over the years, a wide range of studies have been conducted by academic institutions,
Federal entities, etc., of the Agency’s private-sector enforcement activities, resulting in
various findings and recommendations. The OIG contracted with IMPAQ International,
LLC, a social science research firm, to conduct a synthesized review of these studies to
determine whether new and useful conclusions or recommendations could be ascertained
that may provide EEOC’s workforce with opportunities to improve the efficiency and
effectiveness of its management of the Agency’s private-sector enforcement activities.

The review focused on synthesizing information from studies (circa 1996-2012)
examining EEOC's key charge processing activities, as well as input obtained through
interviews conducted by IMPAQ with EEOC leadership and staff. Key questions for the
review included:

      What factors are associated with the efficiency with which the EEOC carries out
       private sector charge processing activities?
      What factors are associated with the effectiveness with which the EEOC carries
       out private sector charge processing activities?
      What are the key information gaps related to developing strategies to more
       efficiently and effectively carry out private sector charge processing activities?

On April 9, 2013, the final report issued and recommended that:

     1. The EEOC should further standardize intake procedures across field offices.
        Consistent with ongoing efforts to improve the uniformity of intake materials and
        other efforts to establish greater communication with and between field offices,
        best practices related to the intake interview should be identified and widely
        adopted with accompanying training as needed.



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                OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                          Equal Employment Opportunity Commission

     2. The EEOC should document criteria for determining Category C charges. To
        enhance efficiency and effectiveness and promote the delivery of excellent and
        consistent service as sought in the Strategic Plan, the EEOC should continue to
        pursue ways to improve its triaging of charges, especially with regard to
        identifying Category C charges.

     3. The EEOC should continue efforts to develop a national approach for addressing
        systemic discrimination. The EEOC has made progress in recent years addressing
        systemic discrimination. The Commission has set a target that by FY 2016, 22-24
        percent of the cases on its active litigation docket will constitute systemic cases.
        This is an increase from the 20 percent baseline of FY 2012. To attain the FY
        2016 goal, we encourage the EEOC to remain committed to identifying systemic
        discrimination through a strategic, nationwide, and coordinated approach aided by
        newly adopted and future technological capabilities, excellent guidance from
        subject experts, and continued oversight by EEOC leadership.

     4. The EEOC should continue to review the range of information obtained during
        intake interviews and how it is stored in IMS. Along with further standardizing
        intake procedures, the EEOC should examine the information that is currently
        obtained from charging parties and assess whether every element of information is
        essential and whether additional information is needed for a given charge or for
        addressing systemic discrimination.

     5. The EEOC should investigate the merits of expanding the information it obtains
        related to hiring and terminations. The EEOC should investigate whether it would
        be advantageous to its mission to obtain more information. Currently, much of the
        data collected on hiring and termination is determined by law. The EEOC should
        consider both obtaining additional information from the employers, employees,
        and applicants currently providing information, and expanding the groups of
        employers and employees required to provide the EEOC with information.




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                OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                          Equal Employment Opportunity Commission

NEW AND ONGOING AUDIT AND EVALUATION PROJECTS
FY 2013 Audit of the Consolidated EEOC Financial Statements

The public accounting firm of Harper, Rains, Knight & Company, P.A., is performing the
2013 financial statement audit of the EEOC, which is required by the Accountability of
Tax Dollars Act of 2002. Fieldwork is ongoing, and the audit opinion will be included in
the Agency’s 2013 Performance and Accountability Report. Additionally, the auditor will
issue a management letter report identifying any internal control weaknesses shortly
thereafter.

Agency Compliance with the Federal Managers’ Financial Integrity Act (FMFIA)

The OIG’s independent assessment is to determine if the Agency’s management control
evaluation process was conducted in accordance with Office of Management and Budget
(OMB) standards. 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. 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 2013 Federal
       Managers’ Financial Integrity Act (FMFIA) Assurance Statement and Assurance
       Statement Letter, with supporting documents.

Cooperative Audit Resolution and Oversight Initiative (CAROI)

The OIG continued work on its CAROI, launched in 2012, and continues to achieve
improvements in its relationship with the auditees, and Agency audit follow-up officials.
These improvements have resulted in the closure of a number of unresolved audit
recommendations, better communications among participants in the audit follow-up
program, and improved accuracy in audit follow-up reporting, and better overall
implementation of the process. An advisory report on the CAROI effort, originally
scheduled for the third quarter of FY 2013, is now planned for the first quarter of FY
2014.




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                OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         Equal Employment Opportunity Commission

Also during this reporting period, OIG’s Senior Evaluator made a presentation at a
CAROI conference sponsored by the State of Maryland. The presentation, EEOC and
CAROI, a Promising Beginning, explained how the CAROI could be applied in a smaller
Federal entity and underscored how it contributed to improvements in EEOC’s audit
follow-up program.

Open Government and Transparency Progress Review

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. OIG’s progress
review focuses on EEOC Open Government and related activities from July 16, 2011, to
the present. During this reporting period, EEOC circulated, within EEOC, a draft update
to its Open Government Plan. Once OIG has reviewed the final plan, we will issue our
progress report.

Fiscal Year 2013 Federal Information Security Management Act Independent
Evaluation (FISMA)

OIG contracted with Brown and Company, PLLC 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). Fieldwork is
underway and is scheduled to be completed to meet the OMB reporting deadline.

Personnel Security Program Performance Audit

OIG contracted with Williams Adley & Company-DC, LLP to conduct a performance
audit of the EEOC Personnel Security Program. The objective of this audit is to ensure
that EEOC has implemented a personnel security program that adheres to federal
government laws, regulations, and policies. Work began during the fourth quarter FY
2013 and should be completed by the beginning of the third quarter.


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, 2013 – September 30, 2013
                            Equal Employment Opportunity Commission

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. One new report was issued during this reporting
period (April 1, 2013–September 30, 2013), which contained findings.

                       Reports Issued During This Reporting Period

       Fiscal Year     Report Number                 Report Title                 Date Issued
          2013         2012-09-REV              Review of Evaluations              04/09/13


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 2013. The OIG
is reporting a total of 15 reviews with a total of 50 open recommendations for this
reporting period. The following table shows those recommendations for which corrective
action has not been completed.

            Recommendations for Which Corrective Actions Have Not Been Completed

     Fiscal
      year     Report number                           Report title                       Date issued
     2013       2012-01-FIN        FY 2012 Financial Statement Audit Report                11/16/2012


        Update controls over maintenance of personnel files and perform a thorough review of
         its employees’ personnel files to ensure that documentation is current and complete.
        Identify and update all policies and procedures impacted by the implementation of
         FCS.
        Document and Monitor implementation of all complimentary user control
         considerations.
        Implement stringent reconciliations and resolution procedures over financial reporting
         reconciliations of management reports/sub- ledgers to FCS general ledger data.
        Implement procedures over manual adjustments made by its service provider that
         meets the same rigor and documentation standards as internally generated manual
         adjustments.




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                  OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                           Equal Employment Opportunity Commission



     Fiscal
      year    Report number                          Report title                      Date issued
     2013       2012-03-            FY 2012 Federal Information Security               11/14/2012
                 FISMA                    Management Act Report

        EEOC implement a centralized repository to maintain control of access request forms.
        EEOC implement multifactor authentication for network access to non-privileged and
         privileged accounts.
        EEOC management ensure that all network users have read and signed
         acknowledgement of receipt of Information Security Responsibilities of EEOC System
         Users and that forms are managed in a centralized location.
        EEOC management revise the agency’s policy to correctly reflect the entire severity
         rating list published by US CERT.


     Fiscal
      year    Report number                          Report title                      Date issued
     2013      2012-02-FIN       FY 2012 Financial Statement Management                12/19/2012
                                              Letter Report

        Update controls over maintenance of personnel files and perform a thorough review of
         its employees’ personnel files to ensure that documentation is current and complete.
        Identify and update all policies and procedures impacted by the implementation of
         FCS.
        Document and Monitor implementation of all complimentary user control
         considerations.
        Implement stringent reconciliations and resolution procedures over financial reporting
         reconciliations of management reports/sub- ledgers to FCS general ledger data.
        Implement procedures over manual adjustments made by its service provider that meet
         the same rigor and documentation standards as internally generated manual
         adjustments.
        Depreciation be calculated and recorded in FCS on a monthly basis.

     Fiscal
      year    Report number                          Report title                      Date issued
     2013     2012-10-PMEV            Evaluation of EEOC’s Performance                 03/21/2013
                                                   Measures

        Include measures such as proposed in Section III of this report as soon as possible in


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                OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                               Equal Employment Opportunity Commission

              EEOC’s annual Performance and Accountability Report (PAR) These are the
              outcomes that citizens, Congress, and OMB are most likely to consider important.
              Progress o the measures should be a major focus of EEOC.
             Plan to include at least a subset of the measures as the principal outcome measures in
              EEOC’s next strategic plan. The data obtained from 2012-2016 on the measures will
              provide baseline data for establishing targets for the next strategic plan.
             Begin introducing some of these measures in to updates of the current strategic plan.
             Expand the new Strategic Enforcement Plan (SEP) requirement for quarterly reviews
              to include not only SEP progress reflected in the latest EEOC performance
              reports…EEOC management would likely benefit considerably with the
              implementation of quarterly data driven reviews such as those required by large
              federal agencies.
             Provide commissioners and managers with easy access to relevant disaggregation of
              the outcome measure values. Outcome data would be broken out by such
              characteristics as priority level, industry, and key characteristics of charging parties.
             Ask the appropriate office to provide explanations for unexpectedly poor, and very
              good, measurement data values shown in the latest performance report. Such
              explanations should be included as part of both external and internal performance
              reports. Such information would be part of the performance reports and would
              encourage management at all levels to focus on needed improvements.

     Fiscal
      year       Report number                           Report title                      Date issued
     2013           2012-08-         Performance Audit of EEOC Charge Card                 03/28/2013
                    PURCH                          Program

        Perform further analysis on its government charge card operations to identify all of the
         controls that should be implemented per OMB directives including the identification
         of procedures performed utilizing the new accounting system (FCS) as well as the
         current duties of personnel interacting with the system. Specifically, EEOC should:
         meet with all process lead personnel to determine what controls are or should be in
         place to ensure that fraud, waste, abuse and misuse are not present in the charge card
         program; identify all requirements in OMB Circular A-123, Appendix B and
         determine procedures necessary to comply with the requirements, and ensure policies
         and procedures are reviewed on an annual basis or more frequently if substantial
         changes have occurred in EEOC’s systems or laws and regulations have been issued to
         ensure that policies and procedures are appropriate for the current environment.
        Develop a system to (1.)identify and track all of its charge card activity, including
         open accounts, closed accounts, cardholder approver levels, and cardholder training
         (2.) perform an evaluation of its service providers controls over the charge card
         program to ensure that controls are appropriate and operating effectively (3.) monitor
         all of its controls whether performed at EEOC or at a service provider at least annually


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                    OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         Equal Employment Opportunity Commission

         to ensure that controls remain adequate and continue to operate effectively.
        Develop policies and procedures to identify and track all cardholder required training.
         Documentation should be maintained following NARA requirements for cardholders
         who have successfully completed training requirements.
        Develop controls over the retention of application documents for charge card accounts.
        Monitor controls over transaction approval whether performed at EEOC or at a service
         provider.
        Implement policies and procedures over record retention for purchase and travel card
         transactions.
        Improve controls over the closure of charge card accounts. The Purchase Card
         Program Manager should maintain documentation of all account closures
         electronically or in hard copy to include name of DRM or A/OPC who received the
         employee’s charge card, date of turn in of card, date of card destruction, and
         confirmation date of account closure from the Charge Card vendor.
        Develop and implement policies to require reviews of total cardholder activity to
         ensure compliance with monthly spending authority for all cardholders.
         Documentation of authority to exceed cardholders spending limits should be
         maintained by management. Penalties for exceeding authorized spending limits
         should be established and enforced.
        Develop and implement policies and procedures to use data mining to monitor charge
         card activity.
        Consider supplementing the listing of disallowed merchant category codes used by its
         charge card vendor with additional disallowed codes based on EEOC’s policies on
         purchase and travel expenses.




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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                            Equal Employment Opportunity Commission



     Fiscal
      year    Report number                           Report title                      Date issued
     2012        2011-05-         Federal Information Security Management               11/17/2011
                  FISMA                         Act Report

        EEOC implement a centralized repository to maintain control over access forms.
        Implement multifactor authentication for network access to non-privileged and
         privileged accounts.



     Fiscal
      year    Report number                          Report title                       Date issued
     2012     2011-03-FIN             FY 2011 Financial Statement Audit                 12/15/2011
                                         Management Letter Report

        Establish a policy and procedure to perform internal audits of the EEOC eOPF system
         for proper implementation and application of all OPM and EEOC policies and
         procedures over the recording and maintaining of official personnel records.




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

        Establish a policy to perform internal audits of the EEOC eOPF system for proper
         implementation and application of all OPM and EEOC policies and procedures over
         the recording and maintaining of official personnel records.
        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, 2013 – September 30, 2013
                           Equal Employment Opportunity Commission



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

        Develop/improve vulnerability scanning capability, and incorporate the results of
         scanning into the POA&M process.
        Implement multifactor authentication.
        Ensure that procedures are followed for disabling accounts no longer added.


     Fiscal
      year    Report number                           Report title                      Date issued
     2009     2009-05-FIN              FY 2009 Financial Statement Audit                1/12/2010
                                          Management Letter Report

        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.)




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                 OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                           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

        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.

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

        Continue with the planned action to implement two-factor authentication with the
         implementation of badges for Homeland Security Presidential Directive 12.

     Fiscal
      year    Report number                          Report title                       Date issued
     2008     2008-03-AMR          Oversight of Federal Agency Reporting                9/26/2008
                                  Management Directive 715 (MD-715) and
                                               Related Topics

        Require Federal agencies to submit Part G, of their Equal Employment Opportunity
         assessment, with their annual MD-715 submissions.

     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

        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.




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                 OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                           Equal Employment Opportunity Commission



     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

        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.
        Seek professional assistance to develop a more effective budgeting method to project
         financial information 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. 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 April 1, 2013 – September 30, 2013
               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
               April 1, 2013 – September 30, 2013

                 Allegations                    Number

       Charge Processing                                   329
       Other Statutes                                        67

       Title VII                                           352

       Mismanagement                                          0

       Ethics Violations                                      6

       Backgrounds                                            5

       Theft                                                  1

       Threats                                                1

       Fraud                                                  2

       Other Criminal Allegations                            25

       Congressional Inquiries                                2

       Total                                               790




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     OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         Equal Employment Opportunity Commission



COMPLETED INVESTIGATIVE ACTIVITIES

Misuse of Government Travel Card Privileges

An OIG performance audit of the Agency’s travel card program revealed that the
program was at high risk of fraud, waste, and abuse. Government travel card procedures
state that the travel card should be used for major expenses connected with official
government travel and prohibits the use of the card for the “withdrawal of cash for any
other purpose other than a travel advance.” As a follow-up to the audit, OIG obtained and
reviewed Citibank travel card records and found evidence that an employee used the
government travel card to get 73 cash advances between August 2012 and June 2013.
During this same period, the employee used the card to purchase gasoline, food, etc. All
of the transactions occurred within the employee’s local commuting area, and there was
no evidence that any of the cash advances or other transactions were for official
government travel. The employee’s use of the card was deemed misuse, and the OIG
issued an advisory citing its findings to the Office of the Chief Financial Officer which
oversees and administers the Agency’s purchase card and employee travel card programs.

Falsification and Improper Handling of Discrimination Charges

The Office of Inspector General received a complaint from a confidential source alleging
that an EEOC investigator failed to properly investigate charges of discrimination by
denying large numbers of charging parties their right to due process, failing to follow
EEOC policies and procedures in the processing of charges, failing to conduct
determination conferences with charging parties prior to closing charges, and falsifying
charge processing forms, all in an effort to close large volumes of discrimination cases.
The Office of Inspector General obtained and reviewed discrimination charge files closed
by the employee for FY 2012. While our review disclosed inconsistencies in the charge
files and data contained in the Agency’s Information Management System, the Agency
determined there was no evidence of falsification of documents. Moreover, the Office of
Field Programs advised that its review of the charge files investigated by the employee
revealed that his overall work was good; his categorization of charges was done in
accordance with the Agency’s Priority Charge Handling Procedures, and his case
resolutions were appropriately documented. In light of these findings, the matter was
closed.

Agency Employee Uses EEOC Equipment in Tax Fraud Scheme

The Office of Inspector General assisted the Internal Revenue Service Criminal
Investigative Division in a matter involving an EEOC employee who prepared fraudulent
Federal tax returns. The employee prepared twenty tax returns for friends and family
members during the 2009, 2010, 2011 tax years while employed full-time with the


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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         Equal Employment Opportunity Commission

EEOC. The employee used Agency time and equipment to process the fraudulent returns
involving phony information related to educational expenses and business information to
illegally obtain tax credits for the filers, resulting in a tax loss to the U.S. Treasury of
more than $90,000. The employee kept a large percentage of the refunds generated. The
employee was indicted and pleaded guilty to 13 charges related to tax fraud and has since
resigned from federal service.

Alleged Improper Use of Position

The OIG received several anonymous complaints alleging that an EEOC senior official,
whose confirmation to a second term was pending before the U.S. Senate, was
improperly influenced in the performance of their official duties by a party with a matter
pending before the EEOC. The alleged improper influence was a purported offer to assist
the official in obtaining confirmation by the Senate to a second term in office, ostensibly
in return for the official’s support on the matter before the EEOC. The OIG’s review of
the allegation failed to adduce any credible evidence that the official was improperly
influenced by an offer of support for re-confirmation to a second term. Indeed, there was
no evidence adduced which established that a offer of assistance was ever made.
Accordingly, the OIG determined that no further investigative action is warranted, and
the matter was closed.


ONGOING INVESTIGATIVE ACTIVITY

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




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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                         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

     Review of Evaluations            4/9/13                   $0            $0            $0




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               OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                            Equal Employment Opportunity Commission



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)
                        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                                            11-14
Section 5(a)(7)         Summary of Significant Reports                                   11-14
Section 5(a)(8)         Questioned and Unsupported Costs
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, 2013 – September 30, 2013
                         Equal Employment Opportunity Commission


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 26 audit reports issued
by public accounting firms concerning Fair Employment Practice Agencies (FEPAs) that
have work-sharing agreements with the EEOC. There were no audit findings for the
FEPAs that involved EEOC funds.

                        SINGLE AUDIT ACT REPORTS

 State of Rhode Island, June 30, 2011            State of Massachusetts, June 30, 2012

 State of New York, March 31, 2012               District of Columbia, September 30, 2011
 State of Missouri, June 30, 2012                State of California, June 30, 2012
 State of Arizona, June 30, 2012                 State of Pennsylvania, June 30, 2012
 State of Delaware, June 30, 2012                State of New Jersey, June 30, 2012
 State of Kentucky, June 30,2012                 State of Louisiana, June 30, 2012
 State of Nevada, June 30, 2012                  City of New York, June 30, 2012
 State of Nebraska, June 30, 2012                State of Tennessee, June 30, 2012
 State of North Carolina, June 30, 2012          State of Kansas, June 30, 2012
 State of Alaska, June 30, 2012                  State of Colorado, June 30, 2012
 State of Illinois, June 30, 2012                State of Maryland, June 30, 2012
 State of Oregon, June 30, 2012                  State of South Dakota, June 30, 2012
 State of Oklahoma, September 30, 2012           State of Georgia, June 30, 2012




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     OIG Semiannual Report to Congress April 1, 2013 – September 30, 2013
                          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 April 1, 2013 – September 30, 2013