oversight

Semiannual Report: Apr-Sep 2015

Published by the Equal Employment Opportunity Commission, Office of Inspector General on 2015-11-01.

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 the                  April 1, 2015–September 30, 2015
  U.S. Congress




                Milton A. Mayo Jr.
                Inspector General
EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT




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                            OIG VISION

 Effective, efficient and accountable management of Agency
             programs, operations and personnel.




                          OIG MISSION

  To detect and prevent waste, fraud, and abuse, and promote
  economy, efficiency, and effectiveness in the programs and
operations of the Equal Employment Opportunity Commission.




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CONTENTS
Message from the Inspector General …………………………………………...6

Executive Summary ……………………………………………………………7

Introduction ……………………………………………………………………8

The Audit and Evaluation Program ……………………………………………10

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

The Investigation Program …………………………………………………….21

Investigative Inquiries
Completed Investigative Activities
Ongoing Investigative Activities

Appendixes…………………………………………………………………….25
Appendix I. Final OIG Audit and Evaluation Reports
Appendix II. Index of Reporting Requirements
Appendix III. Single Audit Act Reports




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                             Message from the Inspector General

In accordance with the Inspector General Act of 1978, as amended, I herewith submit the
semiannual report for the period April 1, 2015, through September 30, 2015, 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 Office of Inspector General (OIG) issued 3 final audit/evaluation reports,
completed 5 investigations, and received 305 investigative inquiries, of which 144 were charge
processing issues, 91 were Title VII complaints, and 70 were other investigative allegations.

As the Commission continues to commemorate its 50th anniversary at the forefront of enforcing
federal laws intended to “Stop and Remedy Unlawful Employment Discrimination” the OIG
remains unwavering in its commitment to assist the Agency in effectuating its mission, by
promoting effective, efficient and accountable management of Agency programs, operations and
personnel.

We thank Chair Jenny R. Yang, the Commissioners, and the employees of the Commission for
your continued support of our office.

Respectfully,



Milton A. Mayo Jr.
Inspector General




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                       OIG Semiannual Repor t       Apr il 1, 2015–September 30, 2015
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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 April 1, 2015, through
September 30, 2015.
During this period, the OIG issued 3 final audit/evaluation reports, completed 5 investigations,
and received 305 hotline inquiries, of which 144 were charge processing issues, 91 were Title
VII complaints, and 70 were other investigative allegations.
The OIG’s completed, newly initiated, and ongoing audit, evaluation, and investigative projects
include the following:

   •   The OIG reported to the U.S. Senate Committee on Homeland Security and Government
       Affairs that no non-career officials had been involved in the Freedom of Information Act
       process at EEOC from January 1, 2007, to the present.

   •   The OIG contracted with the Urban Institute, a nonprofit organization located in
       Washington, D.C., to evaluate the efficiency and effectiveness of EEOC’s Outreach and
       Education Program. The five-month evaluation concluded with a final report, issued May
       8, 2015, which provided a broad overview examining the EEOC’s outreach and education
       efforts and, where appropriate, suggested areas the EEOC might improve its effectiveness
       or efficiency.

   •   Agency policy directive EEOC Order 195.001 Management Accountability and Controls
       requires the OIG to annually provide a written advisory to the Agency head regarding
       whether the management control evaluation process complied with Office of
       Management and Budget guidelines. Fieldwork is underway to ensure that the OIG meets
       its mandated reporting deadline requirement.

   •   In several field offices, ongoing investigations continue, 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, misuse of position, and threats against the
       Agency.




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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
the Americans with Disabilities Act Amendments Act of 2008; the Civil Rights Act of 1991; the
Lilly Ledbetter Fair Pay Act of 2009; and the Genetic Information Nondiscrimination Act of
2008 (P.L. 110-233 Stat. 881), also referred to as GINA. These statutes prohibit employment
discrimination based on race, sex, color, religion, national origin, age, disability, or genetic
information.
EEOC is also responsible for carrying out Executive Order 12067, which promotes coordination
and minimizes conflict and duplication among Federal agencies that administer statutes or
regulations involving employment discrimination.
EEOC is a bipartisan commission composed of five presidentially appointed members, including
a Chair, a Vice Chair, and three Commissioners. The Chair is responsible for the administration
and implementation of policy and for the Commission’s financial management and
organizational development. The Vice Chair and the Commissioners equally participate in
developing and approving EEOC policies, issuing charges of discrimination where appropriate,
and authorizing the filing of lawsuits. In addition, 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 EEOC through the 1988
amendments to the Inspector General Act of 1978; these amendments expanded the authority of
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 Agency programs and operations; providing
leadership and coordination; and recommending policies for activities designed to promote
economy, efficiency, and effectiveness in administering programs and operations.
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
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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 serves as the IG’s alter ego and participates fully in policy
development and in management of the OIG’s diverse audit, investigation, evaluation, and
support operations.
The Counsel to the Inspector General is the sole legal advisor in the OIG, providing day-to-day
guidance to the OIG’s investigation team, and is the primary liaison with Agency legal
components and the Department of Justice.
In addition to these positions, the OIG staff includes a chief technology officer, an evaluator, two
auditors, two criminal investigators, an administrative specialist, and a confidential support
assistant.




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                   THE AUDIT AND EVALUATION PROGRAM
                   The Audit and Evaluation Program supports the OIG’s strategic goal of
                   improving the economy, efficiency, and effectiveness of EEOC programs,
                   operations, and activities.




COMPLETED PROJECTS
Non-Career Officials Involvement in the EEOC Freedom of Information Act (FOIA)
Process
The OIG responded to a June 23, 2015, Congressional request to determine if any non-career
EEOC officials' had any involvement in the Agency’s Freedom of Information Act (FOIA)
response process for the period of January 1, 2007 to the date of the request. The OIG was asked
to analyze whether non-career officials' involvement, if any, resulted in any undue delay of a
response to any FOIA request or the withholding of any document or portion of any document
that would have otherwise been released, but for the non-career official's involvement in the
process. The request also asked the OIG to obtain a written certification from the agency's chief
FOIA officer that 1) no non-career officials were involved in the agency's response to any FOIA
request or 2) if such involvement occurred, the involvement of non-career officials had ever
resulted in undue delay of a response to a FOIA request or the provision of less information than
would have been provided but for the involvement of the non-career officials. Based on
interviews and analysis, the OIG found non-career officials had not been involved in the FOIA
process at the EEOC during that period. The OIG also provided a written certification from the
chief FOIA officer stating the same.
Compliance with the Improper Payments Elimination and Recovery Improvement Act
(IPERIA)
On May 13, 2015, the OIG reported that the Agency complied with the Improper Payments
Information Act, as amended by the Improper Payments Elimination and Recovery Improvement
Act. The Agency conducted an Agency-wide risk assessment of vendor and travel payments
made in fiscal year (FY) 2014. In addition, the Agency relied on internal controls currently in
place relating to payments and indicated it would use the U.S. Treasury’s FedDebt System to
recapture any potential improper payments.

Evaluation of EEOC’s Outreach and Education (OIG Report No. 2014-03-OE)
The office of the OIG contracted with the Urban Institute, a nonprofit organization located in
Washington, D.C., to evaluate the efficiency and effectiveness of EEOC’s Outreach and
Education Program. The key questions for the evaluation included the following:

   •   How are outreach and education efforts organized and managed at the EEOC?


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   •   How are financial, human, and other resources used in the EEOC’s outreach and
       education efforts?
   •   How does the EEOC establish and accomplish its outreach and education objectives,
       goals, and performance measures?
   •   What can the EEOC learn from other organizations regarding management of outreach
       and education?
   •   How can the EEOC improve its organization, management, and delivery of outreach
       and education?
The five-month evaluation concluded with a final report, issued May 8, 2015, which provided a
broad overview examining the EEOC’s outreach and education efforts and, where appropriate,
suggested areas the EEOC might improve its effectiveness or efficiency.
The evaluation relied on two sources to build its findings and conclusions: a series of interviews
with key staff involved in outreach and education and an examination of relevant documents.
Those interviewed included staff at the EEOC headquarters, staff at the EEOC district and field
offices, representatives from some Fair Employment Practices Agencies, one interview with the
outreach and education office at the US Department of Housing and Urban Development, and
three interviews with the staff working on outreach at the Department of Labor.
The report disclosed that the EEOC performs a significant amount of outreach and education.
The EEOC’s outreach and education is diffused throughout the different offices of the EEOC.
The primary outreach and education responsibilities fall within the Office of Field Programs
(OFP). Nineteen program analysts (who are spread among 15 district offices) conduct and
organize a significant portion of the EEOC’s outreach and education. Many other staff,
including regional attorneys, investigators, legal counsel, and attorneys both at the EEOC
headquarters offices and in district and field offices, participates in presentations and events that
occur throughout the year. Overall, the report contained 14 recommendations:

   •   Create a more centralized operation for outreach and education, perhaps developing a
       role for a director of outreach and education.
   •   Alleviate some of the administrative burden that program analysts in the district and field
       offices experience in organizing outreach and education.
   •   Evaluate the feasibility of funding more local outreach and education through EEOC’s
       Fair Employment Practices Agencies.
   •   Seek more “earned media” (regular opportunities to evoke news coverage), possibly
       through a regular update on the state of employment discrimination; deliver EEOC’s
       message in an empowering way with a human connection.
   •   Improve the EEOC website. Specifically, improve navigation, tailor content to various
       audiences and keep information updated about ongoing outreach and education
       opportunities.
   •   Evaluate how EEOC’s audiences view the agency; one way to achieve this is to conduct a
       brand evaluation, possibly including an audit of communications materials and/or surveys
       of audience opinion on EEOC’s image and communications.

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   •   Use the EEOC’s internal intranet (InSite) to facilitate communications among program
       analysts including the creation of an outreach and education “clearinghouse” with past
       materials used by program analysts for presentations and events.
   •   Provide analytical support to district and field offices to help in prioritizing audiences and
       subject matter based on a thorough examination of charge data.
   •   Regularly survey event attendees to measure the effectiveness of outreach and education
       efforts.
   •   Review website analytics regularly; look specifically at the EEO guidance consumers
       view.
   •   Regularly survey EEOC’s significant partners to track how partners are using EEOC
       materials and information.
   •   Track the source of charges to identify the extent to which significant partners or other
       sources have helped those who have been discriminated against access EEOC’s services.
   •   Use charge data to provide evidence of the outreach and education outcomes.
   •   Change the position title of “program analyst” to something like “outreach and education
       coordinator.”

The Agency’s response to the draft report stated that many of the recommendations were
consistent with the Agency’s assessment, and that the Agency had already begun to implement
changes to how it integrates and coordinates outreach and education work in a number of areas.
The Agency’s response also stated EEOC would seriously consider all of the recommendations,
recognizing their need to prioritize their activities, in light of limited resources.

NEW AND ONGOING AUDIT AND EVALUATION PROJECTS
FY 2015 Audit of the Consolidated EEOC Financial Statements
The public accounting firm of Harper, Rains, Knight & Co., P.A., is performing the 2015
financial statement audit of EEOC, which is required by the Accountability of Tax Dollars Act of
2002. To ensure that the OIG meets its mandated reporting deadline requirements, fieldwork is
ongoing, and the audit opinion will be included in the Agency’s 2015 Performance and
Accountability Report. In addition, shortly thereafter, the auditor will issue a management letter
report identifying any internal control weaknesses.

Agency Compliance with the Federal Managers’ Financial Integrity Act (FMFIA)
Agency policy directive EEOC Order 195.001 Management Accountability and Controls
requires the OIG to provide an annual written advisory to the head of the Agency regarding
whether the management control evaluation process complied with Office of Management and
Budget (OMB) guidelines. The OIG’s independent assessment is to determine whether the
Agency’s management control evaluation process was conducted in accordance with OMB
standards. Fieldwork is underway to ensure that the OIG meets its mandated reporting deadline
requirement. Evaluation results will be included in the 2015 Performance and Accountability
Report.



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FY 2015 Independent Evaluation Regarding Agency Compliance with Federal Information
Security Modernization Act (FISMA)
The OIG contracted with Brown and Company, PLLC, to perform an independent evaluation of
the EEOC's information security program compliance with the Federal Information Security
Modernization Act of 2014. Fieldwork is underway and is scheduled to meet the OMB
Cyberscope reporting deadline.

Evaluation of Litigation
The OIG contracted with the Urban Institute to conduct an evaluation that assesses the Agency’s
Litigation Program. The Urban Institute will assess the Agency’s litigation efforts, focusing on
areas where gains in efficiency and effectiveness may be obtained. The draft report is planned for
the second quarter of FY 2016 and the final report for the third quarter of FY 2016.

Open Government and Transparency Progress Review
On December 8, 2009, the OMB issued Memorandum M-10-06, known as the Open Government
Directive, which 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. Other pressing work priorities prevented the OIG from
issuing a progress report during this reporting period. Our report issue in the first quarter of FY
2016.

AUDIT FOLLOW-UP
Audit follow-up is an integral part of good management and is a shared responsibility of Agency
management officials and auditors. Corrective action taken by management to resolve findings
and recommendations is essential to improving the effectiveness and efficiency of Agency
operations.
Section 5(a)(1) of the Inspector General Act of 1978, as amended, requires that semiannual
reports include a summary description of significant problems, abuses, and deficiencies relating
to the Agency’s administration of programs and operations as disclosed by the OIG during the
reporting period. Three new reports were issued during this reporting period (April 1, 2015–
September 30, 2015); one of those reports contained findings.




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                       OIG Semiannual Repor t       Apr il 1, 2015–September 30, 2015
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                         Reports Issued During This Reporting Period

       Fiscal Year     Report Number                  Report Title                  Date Issued

          2015         2015-01-IPERA       Agency Compliance with the                05/13/15
                                                Improper Payments
                                           Elimination and Recovery Act
                                                     (IPERIA)

          2015                                    Non Career Officials               08/24/15
                                                Involvement in the EEOC
                                                      FOIA Process

          2015          2014-003-OE             Evaluation of Outreach &              5/18/15
                                                       Education



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 2015. For this reporting period, the OIG is reporting 15
reviews, with a total of 80 open recommendations. The following table shows those
recommendations for which corrective actions have not been completed.

          Recommendations for Which Corrective Actions Have Not Been Completed
 Fiscal       Report Number                           Report Title                              Date Issued
 Year
   2014       2014-08-EOIG            FY 2014 Federal Information Security                 12/16/14
                                             Management Act Report
   •    Update policies and procedures to include file integrity process for detecting
        unauthorized changes to software, firmware, and information.
   •    Implement full device encryption or container-based encryption for mobile laptops.
   •    Develop policies and procedures for managing shared group accounts.

 Fiscal       Report Number                           Report Title                              Date Issued
 Year
   2015          2014-01-FIN           Audit of the EEOC’s FY 2014 Financial              11/17/14
                                                     Statements
   •    Update controls over the maintenance of official personnel files. Management should
        perform a thorough review of its employees’ personnel files to ensure that documentation
        is current and complete.
   •    Implement procedures to ensure that EEOC has a complete understanding of policies and
        procedures at its service providers.

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                       OIG Semiannual Repor t         Apr il 1, 2015–September 30, 2015
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Fiscal     Report Number                           Report Title                          Date Issued
Year
 2015       2014-02-FIN        FY 2014 Financial Statement Audit Management                01/13/15
                                                    Letter Report
 •   Monitor and enforce EEOC policies and procedures over sensitive property to ensure that
     controls remain adequate and continue to operate effectively.
 •   Update EEOC policy and procedures to correctly state the current process.
 •   Monitor and enforce EEOC policies and procedures over record retention for purchase
     and travel card transactions to ensure that the controls remain adequate and continue to
     operate effectively. Enforce penalties such as disciplinary action including restitution to
     the government and/or dismissal.
 •   Implement and monitor controls to ensure Approving Officials review and approval are
     documented for each purchase and travel card transactions. This should establish an
     appropriate period of time for retention of records, monitoring by the Purchase Card
     Program Manager, and appropriate disciplinary action for non compliance.
 •   Follow EEOC guidelines for all expense transactions and develop an assessment of
     EEOC’s internal control process in order to proactively manage internal controls to get
     the most from them.
 •   Implement procedures to ensure thatEEOC has read and implemented all Federal
     guidance issued throughout the year.
 •   Work with EEOC service providers to implement internal controls that will catch all
     transactions with a “zero” object class. A monthly review of expense transactions would
     identify all “zero” object class transactions.

Fiscal     Report Number                           Report Title                          Date Issued
Year
 2014       2013-08-PSA                Performance Audit of the Agency’s                     9/4/14
                                          Personnel Security Program
 •   Identify all headquarters and field offices where classified national security information
     is safeguarded, handled, processed, reproduced, transmitted, transported, or destroyed.
 •   Identify all EEOC employees with
         o current or prior access to classified national security information;
         o a current adjudicated security clearance and the sponsoring agency, if applicable;
             and
         o special access or interim clearance and the sponsoring agency, if applicable.

 •   Develop and implement policies and procedures to address the safeguarding, transfer,
     storage, or disposal of classified information. The policy should include the requirements
     for memorandums of understanding between agencies.
 •   Designate a senior agency official to direct and administer the program in accordance
     with Executive Order 13526 and 32 Code of Federal Regulation (CFR) Parts 2001 and
     2003. This senior agency official/office must be provided the resources and authority to


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    achieve compliance with the requirements associated with Classified National Security
    Information program.
•   Implement a formalized training program for individuals who use classified information
    as part of their duties. If an external agency is to assume the responsibility of training
    these individuals, this agreement should be documented in an MOU.
•   Perform and document an assessment or evaluation of current classified information
    practices and safeguarding at headquarters and field offices to determine any non-
    compliance. Immediate corrective action should be taken to address any non-compliance
    noted.
•   Incorporate a review of controls over classified information in EEOC’s annual Federal
    Managers Financial Integrity Act process.
•   Complete risk designations for the remaining estimated 194 EEOC covered positions.
•   Complete and begin any outstanding reinvestigations as required by the CFR.
•   Adhere to EEOC policy and federal requirements pertaining to reinvestigations. EEOC
    should follow its internal policy until further guidance is provided by Office of Personnel
    Management (OPM).
•   Update the policy for the Federal Personnel Payroll System (FPPS) with a timeline and
    implement the revised standard.
•   Review all employee electronic official personnel files to ensure proper inclusion of the
    employee’s certificate of investigation (COI) and in instances where the documentation is
    missing, insert the COI.
•   Report any outstanding EEOC adjudication decisions to the OPM and going forward
    adhere to the 90-day timeline.
•   Develop and implement a procedure to maintain relevant evidence documenting that
    EEOC has informed OPM of EEOC’s adjudication decisions.
•   Explore and document the decision of using alternative staffing options, such as contract
    employees, part time employees, or obtaining an employee on detail in order to become
    current on risk designations, reinvestigations, FPPS, COIs, and adjudication reporting.
•   Update and implement comprehensive policies and procedures for physical security.
    These policies and procedures should include but not be limited to:
        o providing training for the Federal Supply Class (FSC) member or designee at each
            field office location at least annually;
        o developing and implementing a field office onsite security assessment program,
            that includes performing assessments and/or spot checks of field office security
            measures by the Office of the Chief Financial Officer (OCFO) on a rotational
            basis as it relates to Interagency Security Committee requirements; and
        o assisting and ensuring field offices correct noted security weaknesses or document
            acceptance of risk where EEOC has determined corrective action will not be
            taken.
•   Revise the field office self-assessment checklist to include facility security and
    credentialing information.
•   Immediately correct any known weaknesses. If EEOC determines not to correct a noted
    weakness, it should document this analysis and its acceptance of the associated risk.
•   Increase coordination between OCFO and OFP to improve field office security posture,
    awareness and training to ensure compliance with applicable EEOC orders and guides;
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       Facility Security Committees, An ISC Standard, 2nd edition, dated January 1, 2012; and
       other applicable Interagency Security Committee standards.

Fiscal       Report Number                         Report Title                        Date Issued
Year
 2014          2013-FIN-01              FY 2013 Financial Statement Audit               12/16/13

   •      Update and revise the manner in which EEOC controls maintenance of its official
          personnel files. Additionally, management perform a thorough review of its employees’
          personnel files to ensure that documentation is current and complete. (Repeat Finding
          from 2012)

 Fiscal      Report Number                         Report Title                        Date Issued
 Year
 2014          2013-02-FIN          FY 2013 Financial Statement Management              1/31/14
                                                 Letter Report

   •      Work toward prompt resolution of these differences as this is an essential component of
          financial data integrity, and its absence compromises the integrity of the financial
          reporting.
   •      Have management consistently review and approve all documents as prescribed by
          EEOC policies and procedures. Policies and procedures should be reviewed and updated
          to ensure that they reflect the most current protocol.
   •      Ensure that EEOC property records contain accurate and complete property information.
          A review of property records and property inventory should be conducted at least
          annually, but preferably semi-annually.
   •      Establish and implement controls to prevent waste, fraud, and misuse in the Charge Card
          Program. On an annual basis, EEOC should review and update the Charge Card Program
          Guide for substantial changes. Monitor the controls to ensure that they are working
          effectively.

 Fiscal      Report Number                         Report Title                        Date Issued
 Year
 2014        2013-05-FISMA            FY 2013 Federal Information Security              12/10/13
                                            Management Act Report

   •      The OIG recommends that EEOC’s Office of Information Technology implement
          multifactor authentication for remote access. The OIG further recommends that EEOC
          use multifactor authentication in which one of the factors is provided by a device
          separate from the computer gaining access. (Repeat Finding from 2008)




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

  •    Further standardize intake procedures across field offices.
  •    Document criteria for determining Category C charges.
  •    Continue efforts to develop a national approach for addressing and eliminating systemic
       discrimination.
   • Continue to review the range of information obtained during intake interviews and
       review the manner in which the intake information is stored in the Integrated Mission
       System (IMS).
   • Investigate the merits of expanding the information it obtains related to employee hiring
       and terminations.
Fiscal     Report Number                          Report Title                     Date Issued
Year
2013         2012-01-FIN         FY 2012 Financial Statement Audit Report             11/16/2012

  •      Document and monitor implementation of all complementary user control considerations.
         (Repeat Finding from 2010)


Fiscal      Report Number                          Report Title                       Date Issued
Year
2013        2012-03-FISMA           FY 2012 Federal Information Security              11/14/2012
                                          Management Act Report

  •      Have management revise the Agency’s policy to correctly reflect the entire severity
         rating list published by the United States Computer Emergency Readiness Team.


Fiscal      Report Number                          Report Title                       Date Issued
Year
2013         2012-02-FIN          FY 2012 Financial Statement Management              12/19/2012
                                               Letter Report

  •      Implement stringent reconciliation and resolution procedures for reconciliation of
         management reports and sub-ledgers to FSC general ledger data.




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 Fiscal       Report Number                           Report Title                        Date Issued
 Year
 2013        2012-10-PMEV          Evaluation of EEOC’s Performance Measures              03/21/2013

   •      Expand the new Strategic Enforcement Plan requirement for quarterly reviews. EEOC
          management would likely benefit considerably from the implementation of quarterly data-
          driven reviews, such as those required by large Federal agencies.
   •      Provide EEOC Commissioners and managers with easy access to relevant disaggregation
          of outcome values. Outcome data would be broken out by such characteristics as priority
          level, industry, and key characteristics of charging parties.

Fiscal        Report Number                           Report Title                        Date Issued
Year
 2013        2012-08-PURCH           Performance Audit of EEOC Charge Card                03/28/2013
                                                   Program

   •      Perform further analysis on government charge card operations to identify the controls to
          be implemented in compliance with OMB directives. Specifically, review and update the
          identification of procedures performed using the new accounting system (FCS) as well as
          the current duties of personnel interacting with the system. Meet with all process lead
          personnel to determine which 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 the procedures
          necessary to comply with the requirements. Ensure that policies and procedures are
          reviewed on an annual basis, or more frequently, if substantial changes have occurred in
          EEOC’s systems or of laws and regulations have been issued. This will help ensure that
          policies and procedures are appropriate for the current environment.
   •      Develop a system to (1) identify and track all charge card activity, including open
          accounts, closed accounts, cardholder approver levels, and cardholder training; (2)
          perform an evaluation of service providers’ controls over the Charge Card Program to
          ensure that controls are appropriate and operating effectively; and (3) monitor all controls,
          whether performed at EEOC or at a service provider, at least annually, 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 National Archives and Records
          Administration 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 regarding record retention for purchase and travel card
          transactions.
   •      Develop and implement policies to require reviews of total cardholder activity to ensure
          compliance with monthly spending authority for all cardholders. Management should
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                       OIG Semiannual Repor t        Apr il 1, 2015–September 30, 2015
   EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT
           maintain documentation of authority to exceed cardholders’ spending. Establish and
           enforce 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.

  Fiscal
  Year        Report Number                        Report Title                        Date Issued
   2008       2008-03-AMR          Oversight of Federal Agency Reporting               09/26/2008
                                Management Directive 715 (MD-715) and Related
                                                   Topics

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

 Fiscal       Report Number                         Report Title                       Date Issued
 Year
   2008          2007-11-         Performance Audit of the Equal Employment            08/26/2008
                 RFPERF          Opportunity Commission’s Education, Training,
                                  and Technical Assistance Program Revolving
                                                     Fund

     •     Approve the establishment of EEOC’s Training Institute Steering Committee.
     •     Update the Revolving Fund Business Plan to reflect the Agency’s 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 in order 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 Repor t      Apr il 1, 2015–September 30, 2015
EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT

        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 Inquires Received
                    April 1, 2015 – September 30, 2015

                    Allegations                  Number

        Charge Processing                           144

        Other Statutes                               55

        Title VII                                    91

        Mismanagement                                  1

        Ethics Violations                              1

        Backgrounds                                    2

        Theft                                          0

        Threats                                        0

        Fraud                                          4

        Other Criminal Allegations                     4

        Congressional Inquiries                        3

        Total                                       305




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            OIG Semiannual Repor t       Apr il 1, 2015–September 30, 2015
       EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT
COMPLETED INESTIGATIVE ACTIVITIES

Misuse of Position/Harassment of a Charging Party


The OIG received allegations that an employee was misusing his position, acted inappropriately
with a charging party (Complaint 1), misused his official agency credentials, and generally
engaged in infamous conduct as a federal employee.
The OIG found that the employee’s conduct violated 5 C.F.R. 735.203, which advises employees
to avoid engaging in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct,
or other conduct prejudicial to the government. The employee had engaged in inappropriate
conduct with a charging party in a charge of discrimination that was assigned to him for
investigation.
The employee’s actions were documented in 72 e-mails between him and the charging party.
There were also 91 phone calls with the charging party; testimony from the charging party stated
that these conversations involved comments of a sexual nature.
The OIG found that the employee’s conduct also violated 18 U.S.C. §912, 1 impersonating a law
enforcement officer (LEO), when on December 16, 2010, December 21, 2010, and November 2,
2012, he attempted to bypass normal security procedures in the airports, stating he was traveling
armed and with a prisoner in each instance.

       •   On December 16, 2010, the employee completed and signed the Transportation Security
           Administration (TSA) Checkpoint Sign-In Log, identifying himself as an LEO flying
           armed with a prisoner from Seattle, Washington, to Las Vegas, Nevada.
       •   On December 21, 2010, the employee completed and signed the TSA Checkpoint Sign-In
           Log, identifying himself as an LEO flying armed with a prisoner from Las Vegas to
           Seattle.
       •   On November 2, 2012, the employee completed and signed the TSA Checkpoint Sign-In
           Log, identifying himself as an LEO flying armed with a prisoner from Seattle to San
           Jose, California.
       •   On November 2, 2012, the employee made numerous false statements to TSA officers
           concerning the EEOC Unique Federal Agency Number (UFAN), stating he could not
           remember it, that it had changed, and that it had been a while since he had flown,
           indicating and implying that he knew he was authorized to use the EEOC UFAN.

The OIG also found that the employee’s conduct violated 5 C.F.R. 735.203, which advises
employees to avoid engaging in criminal, infamous, dishonest, immoral, or notoriously
disgraceful conduct, or other conduct prejudicial to the government. On November 2, 2012, he
completed and signed the Alaskan Airlines Notice to Armed Individuals and identified himself
as an LEO with a low-risk prisoner. The employee retired from federal service before any
personnel action could be taken in this matter.

1
    The U.S. Attorney’s Office in Seattle declined prosecution in this matter.

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                              OIG Semiannual Repor t             Apr il 1, 2015–September 30, 2015
   EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT

Disclosure of Confidential Information
The OIG was contacted regarding a breach of confidentiality by an EEOC employee. A private
attorney contacted EEOC regarding information received by his/her law firm regarding
employees in an EEOC district office.
An employee was immediately identified as a possible subject of this investigation due to his/her
access to the information and his/her current disciplinary problems (suspension and being on a
Performance Improvement Plan) in the EEOC district office.
The OIG contacted the law firm and obtained the original documents and envelope used to mail
the information and determined that the mailing occurred outside the office zip code. The OIG
conducted background checks and Internet searches involving the employee and his/her actions
around the time the information was sent to the law firm. During this investigation, the employee
advised the officer that his/her laptop computer had been stolen on the local transit system.
The employee also engaged in a physical altercation with an employee in the office and was
placed on administrative leave during this investigation. During this suspension, the employee
was granted disability retirement prior to the OIG’s opportunity to interview him/her on this
matter.

Conflict of Interest
EEOC’s Office of Legal Counsel referred to the OIG a matter for investigation consistent with
the requirements of 28 U.S.C. §535. In June 2014, the OIG conducted a review of the Public
Financial Disclosure and identified an employee who may have taken an official action in a
matter involving an entity in which he/she had a financial interest.
Title 18 U.S.C. §208 requires an individual to have substantial participation in a particular
matter; however, this provision was not intended to prohibit an employee’s involvement in
purely ministerial or procedural acts. Accordingly, the regulations interpreting the meaning of
substantiality expressly exclude such minor activities. A finding requires more than official
responsibility, knowledge, perfunctory involvement, or involvement on administrative or
peripheral issues.
The OIG found that the employee’s signatory action on the Certification/Attestation of Records,
as the custodian of records in a Freedom of Information Action request was purely an
administrative action. Accordingly, the OIG found no violation of 18 U.S.C. §208.

Misuse of Agency Purchase Card
The OIG was contacted concerning allegations of possible misuse of the government purchase
card by an Agency employee.
The investigation revealed purchases from the ABC Stores in Virginia, the Virginia Railway
Express, CVS Pharmacy, Walmart, and several grocery stores, between November 2012 and
April 2015. Purchases totaled approximately $5,600.


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                       OIG Semiannual Repor t       Apr il 1, 2015–September 30, 2015
   EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT
Prior to the completion of our investigation, the Agency, using the employee’s admission to the
misuse of the government purchase card, took an administrative action against the employee by
(1) placing the employee on two weeks’ suspension, (2) demoting the employee to a lower grade
and position, and (3) requiring the employee to pay restitution to the Agency.

ONGOING INVESTIGATIVE ACTIVIES
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, misuse of position, and threats against the Agency.




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                       OIG Semiannual Repor t       Apr il 1, 2015–September 30, 2015
  EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT

APPENDIX I. FINAL OIG AUDIT AND EVALUATION REPORTS

                                                                 Funds
                                               Questioned        Put to      Unsupported
       Report Title              Date Issued
                                                 Costs           Better         Costs
                                                                  Use

Agency Compliance with the
    Improper Payments
                                   05/13/15        $0              $0               $0
 Elimination and Recovery
Improvement Act (IPERIA)

    Non-Career Officials’
  Involvement in the EEOC
 Freedom of Information Act         8/24/15        $0              $0               $0
       (FOIA) Process


  Evaluation of Outreach &
                                    5/08/15        $0              $0               $0
         Education




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                      OIG Semiannual Repor t    Apr il 1, 2015–September 30, 2015
   EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT

APPENDIX II. INDEX OF REPORTING REQUIREMENTS


Inspector
General Act                        Reporting Requirements                            Page
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)                                                                      16-22
                   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                                             12-14

Section 5(a)(7)    Summary of Significant Reports                                     16

Section 5(a)(8)    Questioned and Unsupported Costs                                   27

Section 5(a)(9)    Recommendations That Funds Be Put to Better Use                   N/A

                   Summary of Audit Reports Issued Before the
Section 5(a)(10)   Commencement of the Reporting Period for Which No                 N/A
                   Management Decision 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
Section 5(a)(12)                                                                     N/A
                   of Inspector General Disagreed




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                    OIG Semiannual Repor t       Apr il 1, 2015–September 30, 2015
   EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT

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 received an audit
report issued by public accounting firms concerning Fair Employment Practice
Agencies (FEPAs) that have work-sharing agreements with EEOC. Thus, no audit
findings for the FEPAs involved EEOC funds.
   •   Tribal Council Cherokee Nation, September 30, 2014




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                    OIG Semiannual Repor t    Apr il 1, 2015–September 30, 2015
EEOC OFFICE OF INSPECTOR GENERAL SEMIANNUAL REPORT




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

                     HTTP://OIG.EEOC.GOV/HOTLINE

                     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 Repor t         Apr il 1, 2015–September 30, 2015