Office of Inspector General
Semiannual Report to the Congress

April 1, 2004 - September 30, 2004

November 1, 2004

The Honorable Cari M. Dominguez
Chair
Equal Employment Opportunity Commission
Washington, D.C. 20507

Dear Madam Chair:

I am providing the Office of Inspector General’s (OIG) Semiannual Report to Congress summarizing our activities for the six-month period that ended September 30, 2004. The Inspector General Act of 1978, as amended, Public Law 95-452, Section 5(B), requires that you submit this report, and the management report prepared by the Office of Chief Financial Officer and Administrative Services, to the Congress within 30 days of receipt.

During the period, the Office of Inspector General issued five audit and evaluation reports which included the Management Letter Report on the Fiscal Year 2003 Financial Statement Audit. This report discusses two internal control matters that warrant management attention, but more importantly, it documents the significant improvements to the Agency's financial management practices which have occurred under your leadership. Also, ten investigations were completed that addressed such allegations as conflicts of interest, falsification of records, fraud, and sexual harassment. However, OIG concluded that there was insufficient credible evidence to support 40 percent of these allegations.

OIG nears completion of its study of the application of telework at EEOC through the issuance of a draft report on headquarters infrastructure use and space utilization, the sponsoring of a telework seminar for managers and supervisors, and completion of phase one of OIG’s telework pilot. Our objective in doing this work is to assist you and senior management by providing information related to employee perceptions and attitudes, technical issues, costs, best practices, and barriers to the effective implementation of frequent telework to reduce infrastructure costs at EEOC.

I appreciate your continued support of OIG’s mission and our contributions towards making EEOC a model workplace.

Sincerely,

Aletha L. Brown
Inspector General

TABLE OF CONTENTS

Executive Summary

Introduction

Office of Inspector General

The Equal Employment Opportunity Commission

IG's Summary of Significant Management Challenges

The Audit and Evaluation Program

Completed Assignments

Ongoing Audit and Evaluation Activities

Other Audit and Evaluation Activities

The Investigative Program

Investigative Inquiries Received

Completed Investigations

Ongoing Investigative Activity

Other OIG Activities

Appendices

OIG Audit and Evaluation Reports

Index of Reporting Requirements

Single Audit Act Reports

EXECUTIVE SUMMARY

This semiannual report is issued by the Equal Employment Opportunity Commission’s (EEOC) Office of Inspector General (OIG) pursuant to the Inspector General Act of 1978, as amended. It summarizes OIG’s activities and accomplishments for the period April 1, 2004 through September 30, 2004. During the period, the OIG issued five audit and evaluation reports; completed ten investigations or special projects and received 172 investigative inquiries of which 68 were charge processing issues. In addition, staff gained professional certifications and participated in external professional activities. Significant activities are summarized below.

OIG completed Phase One of its frequent telework pilot program. The frequent telework pilot was initiated to test a hypothesis that we introduced in one of our previous reports, Reducing Infrastructure Cost Through Increased Use of Telework - OIG Report Number 001-13-AMR. Through the pilot, OIG obtained significant information regarding the technical requirements necessary to engage in productive telework, as well as the effects of implementing a frequent telework program.

OIG conducted an evaluation of EEOC’s headquarters infrastructure use and space utilization. A Draft Report was issued on September 30, 2004. The report examines whether increased use of frequent telework may create options for improving effectiveness and efficiency of selected EEOC infrastructure particularly as it relates to office space and technology. OIG found that frequent telework could lessen the need for space and result in net savings of over $5 million in the first five years.

The Office of Inspector General issued a Management Letter Report in connection with the FY 2003 Financial Statement Audit of the EEOC. The report, prepared by Cotton & Co. LLP, identified two internal control weaknesses and documented improved financial management practices.

OIG completed an investigation into an allegation that a supervisor sexually harassed a subordinate employee by forcing the employee to buy lunches, pressuring the employee to have sexual relations, and refusing to allow the employee to end the affair. After an extensive investigation, OIG found that there was insufficient credible evidence to establish that the supervisor engaged in the inappropriate conduct.

OIG completed an investigation into an allegation that an Agency investigator requested a charging party, whose case was under their investigation, to perform home repairs at the investigator’s private residence. OIG found that although the allegation was not substantiated, the investigator allowed the charging party to visit her private residence and gave the charging party a small amount of money during the visit. In doing so, the investigator created an appearance of impropriety in violation of Standards of Ethical Conduct for Employees of the Executive Branch, 5 C. F. R. §2635.101 (b)(14).

OIG completed two investigations involving allegations of falsification of time and attendance records. In one instance, OIG determined that there was no credible evidence to establish that any falsification of time and attendance records occurred. In the second instance OIG determined that the preponderance of evidence established that the employee submitted altered medical certifications in support of advance leave requests. OIG issued a report concluding that the employee violated Standards of Ethical Conduct for Employees of the Executive Branch, 5 C.F.R. §735.203, and 5 C.F.R. §2635.101 (b) (1), (5), (14).

OIG sponsored a telework seminar for Agency supervisors and managers at Headquarters. The seminar informed staff about critical telework topics and stimulated discussion about telework as a means of reducing infrastructure costs.

INTRODUCTION

OFFICE OF INSPECTOR GENERAL

The Inspector General Act of 1978 ensures 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 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 the 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 and evaluation staff conduct 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 number 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 Investigative 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 specialist manages the office, maintains control of OIG accounting records, handles human resource matters, responds to inquiries from the public and performs a variety of other support functions. In the absence of a Confidential Assistant, the criminal investigators operated OIG’s hotline, responded to inquiries from the public and performed several other administrative support functions.

THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

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.

During this reporting period, the Agency awarded a contract for a pilot National Contact Center to Pearson Government Solutions. The National Contact Center, which is scheduled to begin operating in spring 2005, is intended to enhance customer service and to afford the public a central EEOC point of contact. The Agency also relocated its Washington Field Office from 1400 L Street, N.W., Suite 200, Washington, D.C. to the first floor of the EEOC Headquarters building. This relocation to headquarters is expected to result in an annual cost savings of approximately $500,000.

IG's SUMMARY OF SIGNIFICANT MANAGEMENT CHALLENGES

In accordance with Section 3 of the Reports Consolidation Act of 2000, a statement is provided by the Inspector General which summarizes what she considers to be the most serious management challenges facing the Equal Employment Opportunity Commission. These issues were the focus of significant work conducted by the Office of Inspector General during Fiscal Year 2004, and they require continuous effort by the agency. The management challenges also link directly to the President’s Management Agenda initiatives.

Strategic Management of Human Capital

The strategic management of human capital is EEOC’s most critical management challenge. The Office of Human Resources is working towards making major progress in meeting the human capital initiatives of the President’s Management Agenda (PMA) and the OPM’s Human Capital Standards for Success. Steps needed to improve the strategic management of human capital initiative include: continue working with the OPM assigned human capital officer to refine and obtain OPM approval of the Agency developed human capital strategy; complete the development and implementation of an agency-wide integrated workforce planning and analysis capability; complete a skills gap assessment; and develop and execute Individual Development Plans for all employees. Further, the Agency’s human capital strategy needs to be communicated to the workforce. As the Commission draws closer to making a decision on the future structure of the Agency, the Office of Human Resources remains committed to ensuring that organizational structure is focused toward performing mission activities.

OPM’s Division for Human Capital Strategy and Merit Systems Accountability completed a review of the EEOC’s Office of Human Resources’ operations in May 2004. OPM is currently preparing its draft report which will include their findings and recommendations.

Budget/Performance Integration

The FY 2005 Performance Budget continued an improved approach toward budget and performance integration that began with the FY 2004 Performance Budget. The FY 2005 Performance Budget integrated the budget request with the Strategic Plan for Fiscal Years 2004-2009, issued on October 1, 2003. For example, the FY 2005 Performance Budget aligned staffing and funding requests with the two mission-related strategic objectives in the Strategic Plan. In addition, the FY 2005 Performance Budget included increased alignment of resources to major programs. During FY 2003, the Chief Financial Officer began providing consolidated monthly financial reports by strategic goals, objectives and programs to senior managers. These reports include field and headquarters direct and indirect costs for compensation, benefits, rent, program activities, and administration.

The Agency is also making progress in allocating program costs. In the fourth quarter of FY 2004, management gathered annual time allocation information from each employee. In FY 2005, the Agency is adding an automated system that each employee will use to provide time allocation information every two weeks for the entire year. This system, while a strong step forward, does not capture several categories of data necessary, including:

Mission Critical Tasks

1)Time for critical tasks within broad program activities is not included. The critical task data would provide Agency managers with vital information regarding the efficiency of mission-critical tasks (e.g., how much labor does a given Agency office use to perform each stage of charge processing, and how much time was spent litigating a particular case?). Detailed information in this area is vital for properly formulating/justifying budget requests and allocating resources.

Administrative Tasks

2)Time for administrative tasks, such as office meetings and performance assessments, is not captured. This data would be useful in identifying administrative processes that could be improved.

Mission Support Functions

3)The different types of support functions (e.g., customer support for information technology and budget formulation) are not differentiated. Detailed data on time spent on the major support functions is critical to identifying areas of for improvement.

Training

4) Time for any and all types of training is not captured. The training information would allow for powerful analysis on the amount and type of training individuals and groups receive. This data is important for EEOC as it seeks to improve human capital development.

In future years, the Agency plans to allocate funding at more detailed levels to enhance the budget and performance integration effort. Specifically, plans include redesigning the internal budget formulation process and associated guidance, comparing agency performance with other civil rights enforcement agencies, assessing how long tasks take in order to accurately measure costs, and documenting alignment of cost centers in the financial accounting system to Agency programs.

Financial Performance

In accordance with the Accountability of Tax Dollars Act of 2002, the EEOC’s financial statements of FY 2003 were audited. The audit was conducted under contract with the Independent Public Accountants (IPA), Cotton & Co. LLP, who issued a qualified audit opinion on the Agency’s FY 2003 financial statements due to the Agency’s calculation of its future workers compensation liability. The CFO has taken steps to address this issue and continues to work to ensure that the Agency receives an unqualified opinion on the FY 2004 financial statements.

The CFO is also faced with the challenge of obtaining funding in FY 2006 to update the Agency’s current financial management software to one that is certified by the Joint Financial Management Improvement Program (JFMIP).

Competitive Sourcing

Competitive Sourcing still remains a critical management challenge. The Agency plans to consistently identify commercial and inherently governmental inventories throughout the Commission as the five-year competitive sourcing plan is developed. Due to the need for clarification surrounding the May 2003 Office of Management and Budget Circular A-76, management chose to continue the use of the direct conversion provision of the prior version of the Circular for those competitive sourcing initiatives already started. No competitive sourcing initiatives were initiated under the updated Circular for the period of May 2003 through September 2004. No funds were available to obtain the necessary resources to conduct any competitive sourcing actions.

During FY 2004, the Agency was successful converting two full-time equivalent positions and transferring certain accounting functions to the Department of Interior’s financial management system. A savings of $150,000 per year is anticipated. By September 20, 2004, the Agency had saved approximately $1.1 million for previous initiatives. Planned competitions for information technology desktop support and applications training, human resources processing and federal operations intake were delayed awaiting directions from the Administration and Congress. The Agency has begun a competitive sourcing action for federal operations control room functions. This is scheduled for competition by FY 2005 third quarter. The OIG plans to review Agency procurement and competitive sourcing in FY 2005.

E-Government

Two of the major issues facing EEOC regarding E-Government are its ability to adequately secure its information systems, and its ability to expand the Agency’s use of the Internet and computer resources in order to deliver Government services. Both of these areas are consistent with the reform principles outlined by President George W. Bush to provide individuals with a citizen-centered, results-oriented, and market-based Government.

Based upon the results of several information security reviews conducted this year, it is our opinion that the Agency has made significant headway regarding its ability to adequately secure its information resources. However, continued support by senior management with regard to providing the appropriate level of human capital and financial investment is necessary to ensure that all Agency systems remain secure.

Regarding the Agency’s ability to use the Internet and other computer resources to deliver Government services, EEOC has made significant progress. During the year, the Office of Information Technology (OIT), in collaboration with the Office of Field Program’s Revolving Fund, developed a web-based registration and sales system. This system provides the public, private businesses, and federal and state government agencies the ability to register and pay for seminars, and obtain educational and training materials on-line, via the Internet. OIT worked with the Department of Interior’s National Business Center to develop an interface which automatically integrates the web-based payment data with EEOC's core financial system, thereby improving data integrity and timeliness by replacing the previous manual process. Furthermore, EEOC is currently implementing a Charge Assist System to assist the public in filing discrimination complaints electronically. The system contains an “e-Assessment” module to help the public determine if EEOC is the appropriate agency to assist them with their complaint, and an “e-Questionnaire” module will allow the public to securely transmit an inquiry to an EEOC field office for processing. These endeavors require committed financial support to ensure that EEOC continues its progress in providing improved Agency Internet services to the public.

THE AUDIT AND EVALUATION PROGRAM

OIG’s work supports the Five-Point Plan initiative, EEOC as a Model Workplace. The plan, developed by Commission senior managers, at the direction of Chair Cari M. Dominguez, provides the foundation for the Agency’s vision and the strategic framework for operations. The Audit and Evaluation Program’s efforts emphasize OIG’s commitment to improving the economy, efficiency, and effectiveness of Agency programs, operations, and activities.

COMPLETED ASSIGNMENTS

FY 2003 Financial Statement Audit Draft Management Letter

On March 16, 2004, the OIG issued the Draft Management Letter prepared by Cotton & Co. LLP in connection with the FY 2003 Financial Statement Audit. This report identified internal control matters relating to Year-End Procedures for Recording Undelivered Orders and Accounts Payable and Information Technology Vulnerabilities. Agency management provided their comments which are now being evaluated and will be included in the Final FY 2003 Financial Statement Audit Management Letter which will be issued in the 3rd quarter FY 2004.

Peer Review of the Federal Communications Commission

OIG conducted a peer review of the Federal Communications Commission's (FCC) OIG during March 2004. A Draft Report and a Letter of Comments were issued on March 25, 2004. The Draft report includes an Unqualified Opinion on the FCC's audit quality control system. OIG is awaiting comments from the FCC OIG for evaluation and inclusion in the final report, to be issued in the 3rd quarter FY 2004.

Evaluation of Headquarters Infrastructure

Infrastructure, of which rent is the largest component, is EEOC's largest non-personnel cost. A previous OIG study (Reducing Infrastructure Costs Through Increased Use of Telework Report Number 01-13-AMR, January, 2003) found that implementation of frequent telework could result in substantial net savings for each of the four field offices studied. The report served as the primary driver for development of an agency goal of reducing real estate costs by 35 percent in five years. In addition, OMB and GSA have cited the report as useful in EEOC's efforts to become more efficient.

OIG is conducting an evaluation of EEOC's Headquarters infrastructure use and space utilization. OIG is examining whether increased use of frequent telework (two times or more per week) may create options for improving effectiveness and efficiency of selected EEOC infrastructure, particularly office space and technology. Techniques of the evaluation included designing and building a cost model, and conducting and analyzing interview and focus group data gathered from over 150 headquarters' employees. Analysis will be completed in April, 2004. A report will be issued to the Chair by June 30, 2004.

Office of Inspector General Independent Evaluation of the Agency's Adherence to the Federal Information Security Management Act of FY-2002 (FISMA)

During FY 2004, the Office of Management and Budget (OMB) required each Office of Inspector General to transmit a report that summarizes the results of annual agency IT security reviews of systems and programs, and assessment of the agency's progress in correcting weaknesses reflected in their Plan of Action and Milestones (POA&M). This work is required by the Federal Information Security Management Act of FY 2002.

During the fiscal year, OIG issued one management report concerning information security. OIG also identified several potential internal control weaknesses regarding network security which will be addressed in FY 2005. However, OIG concluded that EEOC has generally met the FISMA requirements, and that the Agency's overall information security program meets standards described in applicable information security guidance. Furthermore, it is also OIG's opinion that the Agency has made progress in correcting weaknesses reflected in its POA&Ms. OIG will issue its assessment to OMB in early October 2004.

Assessment of EEOC's - Integrated Mission System (IMS)

The FISMA requires that each agency perform annually an independent evaluation of the information security program and practices of that Agency to determine the effectiveness of such program and practices. Under this Act, the Inspector General, or independent external auditor as determined by the Inspector General, shall test the effectiveness of information security policies, procedures, and practices of a representative subset of agency systems.

During the FY 2004, using the NIST Special Publication 800-26, Self-Assessment Guide for Information Technology Systems as our primary evaluation tool, the OIG conducted an assessment of the Agency's mission critical system, IMS. The IMS was designed and developed by the Agency's OIT, in consultation with the Office of Field Programs, the Office of General Counsel, the Office of Federal Operations, and the Office of Research, Information, and Planning. IMS consolidates and replaces several EEOC database systems including the Charge Data System, the Automated Outreach System and the Litigation Tracking System.

A draft report of findings regarding the Agency's IMS will be issued during the first quarter of FY 2005.

ONGOING AUDIT AND EVALUATION ACTIVITIES

FY 2004 Financial Statement Audit of the EEOC (OIG Report No. 2004-05-FIN)

OIG has contracted with Cotton & Co, LLP to perform the financial statement audit of the EEOC. This audit is required by the Accountability of Tax Dollars Act of 2002. Field work is currently in progress. It is expected that the audit opinion will be issued by November 15, 2004, for inclusion in the Agency’s FY 2004 Performance and Accountability Report. Additionally, a Management Letter Report will be issued shortly after the financial statement audit identifying any internal control weaknesses noted.

Agency Compliance with the Federal Manager’s Financial Integrity Act (FMFIA)(2004-07-AIC)

EEOC Order 195.001, Internal Control Systems requires the OIG to annually provide a written advisory to the Chair on whether the management control evaluation process complied with OMB guidelines. To make this determination, OIG is reviewing: (1) assurance statements submitted by headquarters and district directors attesting that their systems of management accountability and control were effective and that resources under their control were used consistent with the Agency’s mission and in compliance with the guidelines set out in the FMFIA of 1982; (2) all functional area summary tables, and functional area reports submitted by headquarters and field offices; and (3) the Office of Research, Information and Planning’s (ORIP) FY 2004 FMFIA Assurance Statement and Assurance Statement Letter, with supporting documents. The purpose of OIG’s independent assessment is to show that the Agency’s management control evaluation was conducted in accordance with OMB’s standards.

OTHER AUDIT AND EVALUATION ACTIVITIES

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, OIG reviewed 26 audit reports issued by public accounting firms, concerning Fair Employment Practices Agencies (FEPAs) that have work-sharing agreements with EEOC. There were no audit findings directed to FEPAs which were related to EEOC funds. (See Appendix III).

Audit Follow-Up

As required by Section 5(a)(3) of the Inspector General Act of 1978, as amended, semiannual reports shall include identification of each significant recommendation previously reported where corrective action has not been completed. OIG has no reports with recommendations previously reported to which corrective action has not been completed. Section 5(a)(1) of the Inspector General Act of 1978, as amended, requires that semiannual reports shall include a summary of each audit report issued before the commencement of the reporting period for which no management decision has been made by the end of the reporting period. OIG has no audit or evaluation reports that were issued before commencement of the reporting period for which no management decision has been made by the end of the reporting period.

THE INVESTIGATIVE PROGRAM

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. This work furthers the Five-Point Plan initiative to make EEOC a model workplace.

During the period, Investigative staff closed 146 matters, of which 115 were hotline contacts. Charge processing issues were referred to OIG by members of Congress, other Inspectors General, or by charging parties or respondents. These charges were either resolved by OIG or directed to the field offices, the Office of Field Programs (OFP) and/or the Office of Federal Operations (OFO), for appropriate action.

INVESTIGATIVE INQUIRIES RECEIVED

COMPLETED INVESTIGATIONS

Falsification of Time and Attendance Records

OIG received a complaint that an Agency employee had falsified her time and attendance records by submitting altered medical certifications in order to acquire advance sick leave. The OIG determined that the preponderance of evidence supported a conclusion that the employee submitted altered medical certifications and that the employee’s conduct was unethical and inappropriate. OIG issued a report which concluded that the employee violated Standards of Ethical Conduct for Employees of the Executive Branch 5 C.F.R. §735.203, and 5 C.F.R. §2635.101(b)(1), (5), (14).

Sexual Harassment

OIG closed a matter involving an employee who alleged that his supervisor sexually harassed him by forcing him to buy her lunches, pressuring him to have sexual relations, calling him on his cellular phone, and refusing to allow him to end the affair. After an extensive investigation, OIG found that there was no merit to the claim of sexual harassment.

Falsification of Time and Attendance Records

OIG received a complaint that an Agency employee had falsified his time and attendance records on numerous occasions, and that the field office management refused to discipline him. OIG determined that there was insufficient evidence to establish that the employee had falsified his time and attendance records or that there was any merit to the allegation.

Impersonation

OIG received a complaint that an individual, impersonating an EEOC investigator, contacted a cruise line stating that he was inquiring about discriminatory practices of the cruise line. The impersonator contacted the cruise line employees through the Internet. After conducting a preliminary investigation, the matter was closed, due to lack of evidence.

Fraud

An EEOC District Office registered to participate in an area cultural event. After paying the registration fee, the event was cancelled. The office tried to contact the event coordinator (area business) to receive reimbursement of the fee, however, the coordinator went out of business. The office referred the matter to OIG. After investigating the matter, OIG reported its findings to the office director and advised the director of necessary steps to begin a collection proceeding against the event coordinator to recover the fee.

Establishment of an Unauthorized Network Account

OIG conducted a preliminary investigation regarding an unauthorized network account that had been established to access OIG network information. Upon review, OIG determined that the establishment of the unauthorized account occurred during system maintenance that was being conducted by an Office of Information Technology Network Administrator. Our preliminary investigative work established that there was no criminal intent regarding the establishment of this unauthorized account. However, OIG did find a lack of internal controls regarding network account establishment. The matter was referred to the OIG Management Analyst for further evaluation.

Conflict of Interest

OIG conducted an investigation to determine whether an Agency employee was involved in the processing of charges of discrimination against a company with which she had financial investments. OIG found that although the employee did not provide the agency with a written recusal, the employee was not involved in the handling of any cases involving the particular company and made no attempts to influence any individual who did handle the case. Accordingly, OIG found that the evidence adduced did not support a finding that the employee violated 18 U.S.C. 208, or any ethical standards governing conflicts of interest.

Fraud and Conspiracy

OIG conducted a preliminary investigation into an allegation that an Agency employee committed fraud and engaged in a conspiracy in connection with the employee’s investigation of a charge of discrimination. OIG determined, based upon its review, that there was no evidence to support a finding that the employee had engaged in any criminal wrongdoing or ethical misconduct in connection with her processing of the charge of discrimination.

Appearance of Impropriety

OIG conducted an investigation into an allegation that an Agency investigator requested that a charging party, whose case was under investigation, perform home repairs at the investigator’s private residence. The OIG investigation adduced evidence that the charging party, accompanied by her children, did visit the investigator’s home. However, the charging party did not perform any home repair work and was not requested to do so. During the course of the visit, the investigator gave the charging party a small amount of money, so the children of the charging party could get something to eat. OIG found that the investigator’s actions created an appearance of impropriety. The matter was reported to Agency management officials.

Conflict of Interest

OIG conducted an investigation to determine if an Agency employee had financial holdings that conflicted with her official duties. Specifically, the investigation was conducted to ascertain whether the employee was “personally and substantially” involved in the processing of any of the charges filed against the company with which she had financial holdings. After reviewing appropriate documentation and conducting witness interviews, OIG determined that the employee was not “personally or substantially” involved in the processing of any of the charges, nor did the employee attempt to influence the outcomes of the cases in any way. Although the employee did not provide the Agency with a written recusal, OIG found that there was no violation of 18 U.S.C. 208 or applicable ethical standards.

ONGOING INVESTIGATIVE ACTIVITY

OIG has ongoing investigations in several field offices involving such matters as conflicts of interest, destruction of evidence, false statements, misuse of Government property, and fraud and misuse of the Agency insignia.

OTHER OIG ACTIVITIES

Case Study - Office of Inspector General Frequent Telework Pilot Program - Phase One

During FY 2004, OIG implemented Phase One of its frequent telework pilot program. OIG’s frequent telework pilot program required designated employees to schedule work at alternative sites at least two days each week. During Phase One, OIG’s two auditors, the evaluator, and management analyst were designated as frequent teleworkers.

We initiated this pilot to begin testing a hypothesis that we introduced in one of our previous reports, Reducing Infrastructure Cost Through Increased Use of Telework - OIG Report Number 01-13-AMR. The report stated that frequent telework could provide the Agency with cost savings by reducing real estate costs (office space). Through this pilot we obtained practical understanding of technical requirements to engage in productive telework, as well as the effects of implementing frequent telework.

During the course of the pilot, OIG observed:

- there are no technical barriers to effective telework, though several issues required time and attention to solve - the pilot did not significantly affect the quantity, timeliness, or quality of our products - the pilot caused communication between employees/staff and several other processes to change,usually in ways that improved the process - the pilot did not cause significant hardships or result in decreased morale of OIG staff

Phase Two of OIG’s pilot, scheduled to begin during the first quarter of FY 2005, will include those previously identified as frequent teleworkers along with the addition of our criminal investigators. We anticipate this phase lasting 180 days. At its conclusion, management will determine whether reducing the space that OIG currently occupies is warranted. OIG’s pilot program was recognized by the Executive Council on Integrity and Efficiency during FY 2004 by an Award for Excellence.

Legislative and Regulatory Matters

During the reporting period OIG reviewed proposed revisions of EEOC Order No. 550.006, EEOC Leave Policy.

Telework Seminar

OIG sponsored a telework seminar for EEOC’s Headquarters’ supervisors and managers. On September 14, 2004, a one-day seminar was conducted by Gil Gordon, a widely respected telework consultant, who conducted similar training in the New York District Office. The seminar informed Headquarters’ supervisors and managers about critical telework topics, and stimulated further discussion about telework as a means to reduce infrastructure costs. Topics and discussions on the following subjects were lively and informative:

- selecting teleworkers - determining whether telework is successful - costs and savings from frequent telework - how frequent telework may affect business processes and Agency culture - trends in telework (federal government and outside the public sector)

Finally, guest speaker, Deborah Cohn, manager of a highly regarded telework program for about 150 Trademark Attorneys at the U.S. Patent and Trademark Office discussed lessons learned from more that 5 years experience with frequent telework.

Professional Development Activities

OIG staff completed the training following activities during the reporting period:

- Association of Government Accountants 53rd Annual Professional Development Conference & Exposition - Supervisory Leadership Seminar - 15th Biennial Forum of Government Auditors - Association of Inspectors General Spring Conference - GSA SmartPay Purchase Card - Inspector General Criminal Investigator Training Program - Telework 101 training - Continuing Legal Education Training Program - Contract & Procurement Fraud and Fraud Prevention - Editing for Impact - Contracting Basics for Administrative Personnel - Using Technology to Increase Efficiency and Effectiveness of Evaluations - Designing, Managing, and Analyzing Multi-Site Evaluations

OIG staff also retained membership in the following professional organizations:

One staff member became a certified Toastmaster of Toastmaster International.

Technology Update

During the fiscal year, OIG began outfitting staff with tools that will enable them to perform their job functions more efficiently. OIG purchased a scanner and compact disk re-writers for each employee to be used with their Agency provided laptop computer. OIG also obtained digital recorders, mini digital cameras, pocket scanners, USB mass storage devices, and a mobile printer, thereby improving the overall technical capabilities of the office.

OIG maintains its current semiannual Report to Congress on the Agency’s Public website, www.eeoc.gov. During FY 2005, OIG plans to further its presence on the Agency’s website by providing information that may be useful to the public.

APPENDICES

APPENDIX I - OIG AUDIT AND EVALUATION REPORTS

APPENDIX II - INDEX OF REPORTING REQUIREMENTS

APPENDIX III - SINGLE AUDIT ACT REPORTS

How to Report Wrongdoing

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
OFFICE OF INSPECTOR GENERAL
HOTLINE
REPORT FRAUD, WASTE, AND ABUSE
1-800-849-4230
OR WRITE: OFFICE OF INSPECTOR GENERAL
P.O. BOX 18858
WASHINGTON, DC 20036-8858
IDENTITIES OF WRITERS AND CALLERS FULLY PROTECTED

This page was last modified on February 4, 2005.

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