Return to Home PageApril 1, 2002 - September 30, 2002
November 1, 2002
The Honorable Cari M. Dominguez
Chair
Equal Employment Opportunity Commission
Washington, D.C. 20507
Dear Madam Chair:
Pursuant to Section 5(b) of the Inspector General Act (IG Act) of 1978, as amended, I am providing the Office of Inspector General's (OIG) Semiannual Report to Congress summarizing our activities for the 6-month period that ended September 30, 2002. The IG Act requires you to submit this report, and the management report prepared by the Office of the Chief Financial Officer and Administrative Services, to the appropriate committees or subcommittees of the Congress within 30 days of receipt.
We appreciate the continuing support and cooperation that you, your management team and Equal Employment Opportunity Commission employees provide to the Office of Inspector General.
Sincerely,
Aletha L. Brown
Inspector General
The Office of Inspector General
The Equal Employment Opportunity Commission
Management Challenges Facing EEOC
The Audit and Evaluation Program
Ongoing Audit and Evaluation Activities
Other Audit and Evaluation Activities
Ongoing Investigative Activities
Legislative & Regulatory Matters
Professional Development and Associations
Index of Reporting Requirements
This is the 27th semiannual report issued by the Equal Employment Opportunity Commission's (EEOC) Office of Inspector General (OIG) since becoming a statutory Inspector General in 1989, pursuant to the 1988 amendments to the Inspector General Act of 1978, as amended.
This report summarizes OIG's activities and accomplishments for the period April 1, 2002 through September 30, 2002. This section of the report highlights selected audits, investigations, staff activities and other projects completed during the reporting period.
During the period, investigations staff closed 155 matters, of which 134 were hotline contacts. OIG concluded investigations of alleged inappropriate conduct toward a charging party by an EEOC field office investigator, and of allegations that an EEOC field office employee made false statements under oath during the course of a deposition taken in connection with a charge of discrimination that the employee had investigated. OIG currently has investigations ongoing in headquarters and five field offices regarding allegations of employee misconduct, mismanagement by managers, falsification of time and attendance records, falsification of charge files, post-employment conflict of interest and falsification of travel vouchers.
As required by the Government Information Security Reform Act (GISRA), Public Law 106-398, Title X, subtitle G, the Office of Inspector General (OIG) conducted an independent assessment of the Agency's information security program. During Fiscal Year (FY) 2002, we completed the following reviews:
(1) the information security training program for new employees;
(2) the access privileges of the Charge Data System (CDS) in a District Office; and
(3) the Internal Security Controls for EEOC's Federal Personnel/Payroll System (FPPS).
Based upon our assessment we concluded that although EEOC is in the process of developing various materials to aid in the training of employees in computer security, the Agency lacks a formal computer security-training program. Moreover, while the Agency's Office of Information Technology (OIT) conducted a physical risk assessment in FY'02, its scope did not include field offices. In our view, EEOC needs to conduct a physical security assessment of its field offices to ensure the security of the Agency's information system assets in those locations.
In previous semiannual reports to Congress, OIG had identified four areas that represented challenges to the management of EEOC. An evaluation of Agency operations in August 2001 revealed that utilization of human capital, information technology and security, performance based management and budgeting and business process re-engineering were the most important challenges facing the management. These areas are being addressed in large measure by the efforts of senior managers who have taken the lead in meeting the initiatives of the President's Management Agenda. As a result of work done in the last reporting period, the Agency has made "Getting to Green" one of its top priorities, as evidenced by inclusion of related measures in senior executive performance plans and the issuance of program action plans and timelines for meeting the core criteria associated with the various initiatives. By the end of the reporting period, action plans for all five initiatives had been submitted.
In our March 2002 Semiannual Report, we recommended that management obtain a legal review of the Revolving Fund's operations to determine whether the ongoing and unreported transfers from the Commission's Salaries and Expense appropriation to the Revolving Fund, over the long term, amount to an improper augmentation of the Revolving Fund. The Agency referred the matter to the Office of Legal Counsel (OLC) for a legal opinion. OLC reviewed the issue and concluded that as a technical matter, there was no illegal augmentation occurring, but observed that the Revolving Fund must obtain complete self-sufficiency in order to comply with the Economy Act. OIG is reviewing OLC's opinion to determine an appropriate course of action relative to this matter.
The Government Performance and Results Act (GPRA) of 1993, requires Federal agencies to prepare annual performance plans and performance reports. OIG conducted its first general assessment of the Agency's 2002 Annual Performance Plan and 2000 Annual Performance Report to determine how well EEOC reports and supports GPRA performance information. OIG submitted a draft report to EEOC for comment in March 2002. OIG has received and reviewed management's comments, and will issue the final report in the first quarter of FY 2003.
Ongoing work includes a preparation for the performance of OIG's first audit of the Agency's annual financial statement. OIG has retained the services of a CPA firm to conduct the audit, and field work will commence in October 2002.
The Inspector General Act of 1978 was passed to ensure a level of integrity and efficiency that fulfills the American taxpayer's expectation for excellence and accountability in the Federal Government and its programs. Inspectors General are under the general supervision of the agency head and have substantial independence, authority and responsibility to conduct audits and investigations of agency programs. They have direct access to all agency records and materials (physical and electronic); issue subpoenas for necessary information, data, reports, and other evidence; administer oaths before taking testimony; hire staff; and request assistance from other Federal, state and local government agencies. They also act as independent fact finders, often undertaking initiatives at the request of the agency head, and provide assessments in such areas as financial management systems and internal controls. Generally, the Inspector General (IG) and agency management pursue the same goal of efficient and effective program operation and service delivery.
Congress established an Office of Inspector General at the EEOC through the 1988 amendment of the Inspector General Act, which expanded authority to independent agencies and federal entities. OIG's primary responsibility is to assist the EEOC by ensuring integrity, efficiency, and accountability in the agency's programs to enforce laws against discrimination in the workplace. Specifically, OIG supports the Agency by carrying out its mandate to independently and objectively conduct and supervise audits and investigations; prevent and detect fraud, waste, and abuse; and promote economy and efficiency in programs and operations. The OIG keeps EEOC's Chair and members of the Congress fully and currently informed about problems, recommends corrective action(s), and monitors the EEOC's progress in implementing such action.
The OIG is under the supervision of the IG, who provides overall direction, coordination, and leadership to staff. The OIG includes a deputy inspector general, an audit and evaluation staff, an investigative staff, an independent counsel, and an administrative staff. The Deputy Inspector General serves as alter ego of the Inspector General and has the responsibility for providing overall program guidance, direction and supervision to audit, evaluation and investigative staffs. The audit program provides assurance to the Chair and Congress that EEOC programs are working efficiently and effectively. The audit staff conducts performance and financial audits, as well as special reviews and evaluations. These audits focus on management controls, administrative and program operations, transaction processing and financial and other information systems. In special evaluations, the OIG considers the implications of EEOC programs, operations and policies.
The mission of the investigative program is to perform investigative activities related to the integrity of the EEOC's programs. Most of OIG's investigations focus on violations of law or misconduct by Agency employees, as well as, allegations of irregularities or abuses in operations and programs. When needed, OIG's investigators work in concert with other law enforcement entities. More than half of investigative inquiries result from employees and the general public calling OIG's 24-hour telephone (hotline) to report wrongdoing. A significant amount of these calls concern EEOC's discrimination complaint process and are referred to the appropriate program office.
OIG's Counsel to the IG (CIG) supervises the day-to-day operations of the Investigations Program, and provides independent legal advice on issues concerning criminal law and procedures, evidence, and administrative and constitutional law as they relate to OIG's investigative program. Counsel develops legal interpretations of appropriation law, financial management statutes and regulations and procurement and funding rules in support of the OIG's audit program. The CIG reviews each report product issued by OIG for legal sufficiency. Additionally, the CIG conducts reviews and provides comments on existing and proposed legislation, regulations, directives and policy issues that affect EEOC and OIG programs and operations.
The administrative and program support staff maintain control of OIG funds, manage personnel and procurement operations, operate OIG's hotline, respond to inquiries from the public and perform a variety of other support functions.
During the reporting period one of OIG's two criminal investigators accepted an appointment with the Transportation Security Administration.
The 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 (ADEA); in the Federal sector only, section 501 of the Rehabilitation Act of 1973; Title I of the Americans with Disabilities Act of 1990 (ADA); and the Civil Rights Act of 1991. These statutes prohibit employment discrimination based on race, sex, color, religion, national origin, age, or disability. 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.
In April 2002, the EEOC initiated a series of workshops designed to share information on the employment of individuals with disabilities with small businesses nationwide. The workshops, which are being developed through EEOC's Office of Legal Counsel and field offices throughout the U.S. and in response to the President's New Freedom Initiative, will be customized for each group of small business participants. The focus will be on the advantages of hiring people with disabilities and will address such topics as permissible questions during job interviews, reasonable accommodations, recruitment resources, and tax incentives. An overview of this new program, along with information on how small businesses can take part in these free workshops across the country, as well as regional EEOC contacts is available on the EEOC web site at www.eeoc.gov. In addition, in August 2002, the EEOC issued The Americans with Disabilities Act: A Primer for Small Business, a practical, reader-friendly handbook outlining the employment provisions of the ADA as they relate to employees and job applicants.
On May 21, 2002, the EEOC issued a final rule to clarify the application of the employment provisions of the ADA to federal government workers. This final rule implements the amendments to section 501 of the Rehabilitation Act and updates the EEOC's Rehabilitation Act regulation in 29 C.F.R. .1614.203. Final rule highlights include:
On August 13, 2002, EEOC issued an extensive five-year litigation study report, covering Fiscal Years 1997 through 2001 (October 1, 1996 - September 30, 2001). The study showed that approximately 91% of federal employment discrimination lawsuits initiated by EEOC are successfully resolved through Consent Decrees, settlement agreements, and favorable court orders. Additionally, EEOC's success rate in trials is 60.24%, compared to a success rate of 26.8% for private plaintiffs in employment discrimination lawsuits, and the Agency's success rate is 80% in the appeal of trials, compared to a 16% rate of success for private bar attorneys. Other key points of the study show that over the five-year period:
In June 2002, the EEOC rescinded its 1999 Guidance of "Remedies Available to Undocumented Workers Under Federal Employment Discrimination Laws", which was necessitated by the Supreme Court's decision in Hoffman Plastic Compounds, Inc. v. National Labor Relations Board, 122 S. Ct. 1275 (2002). Prior to the Hoffiman decision, the EEOC allowed post termination backpay awards to undocumented workers. In Hoffman the Supreme Court held that federal immigration policy precludes an award of backpay to an undocumented worker under the National Labor Relations Act (NLRA). The Agency indicated that the Supreme Court's decision in Hoffman does not adversely affect the government's ability to root out discrimination against undocumented workers.
In September 2002, the EEOC filed several post-9/11 backlash national origin and/or religion discrimination lawsuits including the following:
In previous semiannual reports to Congress, OIG had identified four areas that represented challenges to the management of EEOC. An evaluation of Agency operations in August 2001 revealed that utilization of human capital, information technology and security, performance based management and budgeting and business process re-engineering were the most important challenges facing management. These areas are being addressed in large measure by the efforts of senior managers who have taken the lead in meeting the initiatives of the President's Management Agenda.
The President's Management Agenda - "Getting To Green"
The five initiatives of the President's Management Agenda include: E-Government (E-GOV) Financial Management, Budget and Performance Integration, Strategic Management of Human Capital and Competitive Sourcing. In our last report, we reported our assessment of the Commission's efforts in meeting the core criteria requirements associated with the President's Management Agenda. We awarded red lights in 4 of the 5 initiatives. A yellow light was awarded for the E-Gov initiative. Since that time, the Commission has developed project plans and time lines to meet the core criteria associated with each initiative. Additionally, senior executive performance plans now include performance measures that address their efforts to improve programs and operations in these five critical areas.
Significant progress to improve financial performance is evidenced by OIG's upcoming audit of the Agency's Fiscal Year (FY) 2002 financial statements. Scheduled to begin in October 2002, this is the first time that such an audit will be undertaken.
Expanded e-government measures include integrating e-commerce through the Department of Interior's service center. Productivity improvements obtained include implementing web-based Quick Hire for employee recruitment, integrating core financial systems with procurement and fixed asset management and implementing the Integrated Mission System pilot in the Baltimore District Office.
Progress towards integrating budget and performance will be evidenced by the FY 2004 budget submission to Congress. In other areas, the planned actions are to be implemented over the next few years. It is imperative that management continue to emphasize the importance of the President's Management Agenda. OIG will periodically assess the status of the Commission in meeting its established time lines for ensuring compliance with the Executive Management's Scorecard's criteria for success.
In addition to these challenges a major overhaul of the federal discrimination complaint process is anticipated. An important commission meeting with stakeholders will be held in the first quarter of 2003 to obtain their experiences with, or recommendations to improve, the current system. Although year end accomplishments revealed that a record high 9,452 appeals were closed, the age of inventory was reduced to 256 days compared to 430 days at the beginning of FY 2002, and there were 673 open appeals that were more than 500 days old compared to 3,924 in February 2001, the federal discrimination complaint process continues to be untimely and burdensome.
All work conducted under the Audit Program supports the OIG Strategic Goal to improve the economy, efficiency, and effectiveness of EEOC programs, operations, and activities.
During the reporting period a number of audit and evaluation projects were completed.
Review of Monetary Benefit Information Accuracy
As reported in our previous semianauual report, a draft report was issued regarding the accuracy of monetary benefit information reported in the Agency's Charge Data System (CDS). The scope of the review involved one field office. Although OIG identified areas where improvement is needed concerning documentation, overall the case files reviewed were found to be complete and supervisory review evident. A final report was issued, which reflected management's comments and corrective actions undertaken.
Independent Assessment of the EEOC's Government Information Security Reform Act Compliance
As required by the Government Information Security Reform Act (GISRA), Public Law 106-398, Title X, subtitle G, the Office of Inspector General conducted an independent assessment of the Agency's information security program. During FY'02, we completed the following reviews:
(1) the information security training program for new employees;
(2) the access privileges of the Charge Data System (CDS) in a District Office; and
(3) the Internal Security Controls for EEOC's Federal Personnel/Payroll System (FPPS).
During the course of this GISRA reporting cycle, we also reviewed the Agency's progress in computer security training and in the area of physical security. Based on our reviews, we have noted the following conditions:
Draft Report - Assessment of Reducing Infrastructure Costs Through Increased Use of Telework (OIG Report Number 01-13-AMR)
OIG's objective was to determine whether increased use of telework could create options for increasing effectiveness and efficiency of selected EEOC infrastructure, particularly office space. The central question addressed by the evaluation is whether, through use of frequent telework, EEOC can reduce real estate costs while sustaining or improving mission performance. Techniques of the assessment included designing and building a cost model, and assessing survey and focus group data gathered during visits to four EEOC field offices.
OIG found that implementation of frequent telework could result in substantial net savings for each of the four field offices we studied. The cost model shows net savings of about $1.3 million in the first five years. Savings come from office sharing among those who telework frequently, resulting in reduced space needs. This lowers costs for real estate and produces savings that are substantially higher than the costs to set up and maintain a frequent telework program. Annual cost savings begin in the second year of frequent telework. Major cumulative savings begin in the third year. OIG submitted the draft report to EEOC management for comment in September 2002. OIG plans to issue the final report in November 2002.
Draft Report - Evaluation of EEOC's Performance Planning and Reporting Under the Government Performance and Results Act (OIG Report Number 01-12-AMR)
The Government Performance and Results Act (GPRA) of 1993 requires Federal agencies to prepare annual performance plans and performance reports. The Annual Performance Plan communicates what the Agency proposes to accomplish during the fiscal year, how it will be accomplished, and describes how the Agency will assess whether the desired results were achieved. The Performance Report communicates results by reporting on achievement of performance measures.
OIG conducted a general assessment of the Agency's 2002 Annual Performance Plan and 2000 Annual Performance Report to determine how well EEOC reports and supports GPRA performance information. OIG issued a draft report to EEOC for comment in March 2002. OIG has received management's comments, and will issue the final report in the first quarter of FY 2003.
Assessment of the Implementation of the Federal Personnel/Payroll System (FPPS)
OIG conducted an assessment of the Agency's Federal Personnel/Payroll System (FPPS) implementation. This assessment was conducted as part of OIG's ongoing effort to evaluate the Agency's information systems as required by the Government Information Security Reform Act (GISRA), Public Law 106-398, Title X, subtitle G.
It was our opinion that FPPS has had a successful first year. The success of this implementation was largely due to the level of teamwork exhibited between all parties involved. OIG found no significant problems regarding FPPS's overall planning, its implementation, or its execution. Furthermore, during the year the Agency made significant progress in completing its FPPS data verification effort.
Audit Manual Update
OIG is currently in the process of updating the Audit and Inspection Policy and Procedure Manual. This operations manual will provide general guidance on policies and procedures to be followed by the OIG's auditors, evaluators and other OIG personnel in the performance of their professional responsibilities. An Audit Manual draft will be issued during the next reporting period.
Audit Follow-up
As required by Section 5(a)(3) of the Inspector General Act, as amended, semiannual reports shall include identification of each significant recommendation previously reported on which corrective action has not been completed.
OIG engaged in the following followup activities:
Management Advisory - OMB Scorecard and EEOC
In February 2002 OIG issued a Management Advisory to the Chair which used the Executive Management Scorecard approach to evaluate Agency activities and to establish a baseline for the five initiatives contained in the President's Management Agenda. As a result of OIG's review, management has made "Getting to Green" one of its top priorities. Final action plans have been submitted for all initiatives. OIG continues to provide technical assistance and will periodically assess the Agency's progress in achieving management improvements within established time frames.
OIG Performance Audit of the Education, Technical Assistance and Training Revolving Fund, (OIG Report Number 01-07-APO)
In our March 2002 Semiannual Report, we recommended that management obtain a legal review of the Revolving Fund's operations to determine whether the ongoing and unreported transfers from the Commission's Salaries and Expenses (S&E) appropriation, over the long term, amount to an improper augmentation of the Revolving Fund.
Management accepted this recommendation and a legal review was performed by the Office of Legal Counsel. The Office of Legal Counsel (OLC) notes that the Revolving Fund is reimbursing the S&E appropriation at increasing levels, and that it plans to achieve total self-sufficiency within the next few years. Further, they state that as a technical matter, illegal augmentation is not occurring, but that the Revolving Fund must obtain complete self-sufficiency in order to comply with the Economy Act. OIG is reviewing OLC's opinion to determine an appropriate course of action relative to the matter.
The Investigative work performed supports 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.
During the period, Investigations staff closed 155 matters, of which 134 were hotline contacts. Charge processing issues were referred to OIG by members Congress, other Inspectors Generals or, at the request of charging parties or respondents. These charges were either resolved by OIG and/or directed to field offices, the Office of Field Programs (OFP) and the Office of Federal Operations (OFO), for appropriate action.
INVESTIGATIVE INQUIRIES RECEIVED DURING THE REPORTING PERIOD
| ALLEGATIONS | TOTAL |
|---|---|
| Charge Processing | 82 |
| Other | 42 |
| Title VII | 33 |
| Mismanagement | 9 |
| Ethics | 7 |
| Theft | 1 |
| Threats and Assaults | 3 |
| Fraud | 11 |
| Total | 188 |
Allegation of Inappropriate Conduct
OIG concluded an investigation of alleged inappropriate conduct toward a charging party by an EEOC field office investigator. During the pendency of the investigation OIG adduced evidence that supported a conclusion that the EEOC investigator made inappropriate comments to a charging party and engaged in inappropriate touching of the individual. In so doing, the EEOC investigator violated several provisions of the Government-wide Standards of Ethical Conduct for Employees of the Executive Branch set forth in 5 C.F. R. Part 2635.
False Statements Under Oath
OIG concluded an investigation in which it was alleged that an EEOC field office employee made false statements under oath during the course of a deposition taken in connection with a charge of discrimination that the employee had investigated. OIG found that although there was insufficient evidence adduced to establish that the employee made false statements under oath, there was sufficient evidence to conclude that the employee failed to comply with EEOC procedures established for conducting discrimination investigations outlined in the EEOC Compliance Manual.
Accountability of Tax Dollars Act
The Office of Inspector General provided comments to OMB in support of H.R. 4685, the Accountability of Tax Dollars Act of 2002, which would require agencies with budget authority in excess of $25 million to prepare audited financial statements and the Inspector General to secure an independent audit of the financial statements. OIG had already established, in cooperation with the Chief Financial Officer, the goal of auditing the FY 2002 Agency financial statements. A contract has been awarded and work will begin in October 2002.
The following EEOC Orders and Directives were reviewed during the semi-annual reporting period:
To expand OIG data gathering capabilities and reduce costs for data gathering and analysis tasks, OIG purchased survey software. The software allows questionnaires to be created, forwarded, received, and analyzed electronically in an integrated manner. The software was used successfully for entering and analyzing data gathered for the Assessment of Reducing Infrastructure Costs Through Increased use of Telework.
OIG staff members' professional associations and committees included the President's Council on Integrity and Efficiency and Executive Council on Integrity and Efficiency (PCIE/ECIE) Inspections and Evaluation Roundtable, the Government Evaluators Group, the Association of Government Accountants, the EEOC's Chapter of Toastmasters International, and the Council of Counsels to Inspectors General. Staff participated in training that included the PCIE/ECIE Inspector General Annual Training Conference and Professional Development Seminar on Ethics in Law Enforcement, EEOC Executive Leadership Conference, and the Inspector General Auditor Training Institute. The IG conducted a session on Inspector General and Agency Head Relations during a PCIE/ECIE orientation for new Inspectors General.
Subject matter training was obtained in information security, computer security for federal information systems, cybercrime and privacy update, and advanced qualitative data gathering and analysis. Staff also attended courses in time management, decision making and correspondence tracking systems.
| IG ACT CITE | REPORTING REQUIREMENTS | PAGE |
|---|---|---|
| Section 4 (a) (2) | Review of Legislation and Regulations | 14 |
| Section 5 (a) (1) | Significant Problems, Abuses and Deficiencies | 8 - 13 |
| Section 5 (a) (2) | Recommendations With Respect to Significant Problems, Abuses and Deficiencies | N/A |
| Section 5 (a) (3) | Significant Recommendations Included in Previous Reports on Which Corrective Action Has Not Been Completed | N/A |
| Section 5 (a) (4) | Matters Referred to Prosecutive Authorities | N/A |
| Section 5 (a) (5) | Summary of Instances Where Information Was Refused | N/A |
| Section 5 (a) (6) | List of Audit Reports | N/A |
| Section 5 (a) (7) | Summary of Significant Reports | 8 - 13 |
| Section 5 (a) (8) | Questioned and Unsupported Costs | N/A |
| Section 5 (a) (9) | Recommendations That Funds Be Put to Better Use | N/A |
| Section 5 (a) (10) | Summary of Audit Reports Issued Before the Commencement of the Reporting Period for Which No Management Decision Has Been Made | N/A |
| Section 5 (a) (11) | Significant Management Decisions That Were Revised During the Reporting Period | N/A |
| Section 5 (a) (12) | Significant Management Decisions With Which the OIG Disagreed | N/A |
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
OFFICE OF INSPECTOR GENERAL
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This page was last modified on December 16, 2002.