Return to Home PageOctober 1, 2006 - March 31, 2007
April 24, 2007
The Honorable Naomi C. Earp
Chair
Equal Employment Opportunity Commission
Washington, D.C. 20507
Dear Madam Chair:
The Office of Inspector General’s (OIG) Semiannual Report to Congress, summarizing our activities for the six-month period of October 1, 2006 through March 31, 2007, is provided for your review. The Inspector General Act of 1978, as amended, Public Law 95-451, Section 5(B), requires that you submit this report to the Congress within 30 days of receipt.
During this reporting period, the OIG issued six audit and evaluation reports, completed five investigations, and received 271 investigative inquiries. Highlights include results of an OIG Frequent Telework Program assessment, performance reporting advisory, EEOC financial statement audit, and an internal controls review. Important ongoing work includes an update of the President’s Management Agenda initiative relating to the strategic management of human capital; and investigations into allegations of prohibited practices, conflict of interest and misuse of Government credit cards. Information on the challenges confronting management to improve the efficiency and effectiveness of Agency operations is also included in the report.
The Office of Inspector General is dedicated to promoting economy, efficiency, effectiveness and integrity throughout the Agency. The OIG staff thanks EEOC employees for their continued cooperation and support of our mission to prevent and detect fraud, waste and abuse within the Agency.
Sincerely,
Aletha L. Brown
Inspector General
The Equal Employment Opportunity Commission
The Office of Inspector General
Summary of Significant Management Challenges
The Audit and Evaluation Program
Completed Projects
Ongoing Audit and Evaluation Projects
Other Audit and Evaluation Activities
Investigative Inquiries
Completed Investigations
Ongoing Investigative Activity
Appendix I OIG Audit and
Evaluation Reports
Appendix II Index of Reporting Requirements
Appendix III Single Audit Act Reports
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 October 1, 2006 through March 31, 2007. During this period, the OIG issued 5 audit and evaluation reports; completed 5 investigations, received 271 investigative inquires of which 137 were charge processing issues.
OIG’s completed and ongoing audit, evaluation and investigative projects included:
OUR VISION
A Strong and Prosperous Nation Secured Through a Fair and Inclusive Workplace.
OUR MISSION
We Promote Equality of Opportunity
in the Workplace and Enforce
Federal Laws Prohibiting Employment Discrimination.
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.
The EEOC is a bipartisan Commission comprised 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 for the Commission and for the financial management and organizational development of the Commission. The Vice Chair and the Commissioners equally participate in the development and approval of the policies of the Commission, issue charges of discrimination where appropriate, and authorize the filing of lawsuits. Additionally, the President appoints a General Counsel, who provides legal advice and leadership, including coordination and supervision to EEOC’s litigation program.
On October 1, 2006, EEOC issued a new Strategic Plan for Fiscal Years 2007 through 2012, providing a roadmap for the agency to position itself for the future. The Strategic Plan builds upon what the agency has accomplished to improve its operations. It seeks to maintain the agency’s reach by continuing proactive measures to prevent discrimination; resolving claims of discrimination more proficiently; continuing alternative dispute resolution; developing a more strategic focus in enforcement, litigation and federal programs; renewing a strategy to eradicate race and color discrimination; and maintaining the agency’s internal operations. Other key on-going initiatives include the President’s New Freedom Initiative, the EEOC’s Freedom to Compete Initiative, the Youth@ Work Initiative, and the agency’s Systemic Initiative.
The United States Congress established an Office of Inspector General (OIG) at the EEOC through the 1988 amendment of the Inspector General Act of 1978, which expanded authority to independent agencies and federal entities to create Offices of Inspector General. 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, evaluations and investigations; prevent and detect fraud, waste, and abuse; and promote economy and efficiency in programs and operations. The Inspector General (IG) keeps EEOC’s Chair and 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 is responsible for providing program guidance, direction and supervision to audit, evaluation and investigative staffs. 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. Special reviews and evaluations assess program performance and information security and consider the implications of EEOC programs, operations and policies.
The mission of the investigative program is to perform investigations 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 required, OIG’s investigators work in concert with other Federal, state and local law enforcement entities. Over half of the investigative inquiries OIG receives result from employees and the public e-mailing, or calling the 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 or field office.
The following is a summary of issues the Inspector General considers the most serious management challenges facing the Agency. These matters require the commitment of significant Agency resources, sound decision-making by the leadership, and continued oversight by the OIG.
Reorganization of EEOC Headquarters Operation
The EEOC repositioning plan began in 2005 with the pilot National Contact Center. The second phase was repositioning EEOC’s field structure, which was implemented in January 2006. The repositioned structure allows for expanded presence, flattening of overall management structure, and more logical alignment of field offices. The third phase is the restructuring of EEOC headquarters to better support field operations. Repositioning Workgroup members were selected in March 2007 to conduct an extensive review of headquarter functions with the goal of streamlining responsibilities, reducing layers of management, and redeploying more staff to front-line services. It is expected that greater efficiencies will result and costs will be saved over the long term. Additionally, the lease for headquarters and the Washington Field Office location at 1801 L Street, N.W., Washington D.C. expires in July 2008 and a new location will be decided in May 2007. This effort represents a very significant investment decision which will impact EEOC’s budget for the next decade.
Both realigning and streamlining headquarter functions, and planning and implementing the physical move of staff will undoubtedly impact the productivity, effectiveness, and morale of all headquarters employees. The challenge of mitigating negative impact on the agency’s mission is critical. Management should initiate proactive strategies to better manage employee expectations. These include more timely communication of events related to realigning and relocation efforts, town hall meetings, flexible work schedules and other arrangements like telework, and training to address skills gaps.
OMB’s Program Assessment Rating Tool (PART) Results
The PART evaluates program performance in four (4) distinct areas: program purpose and design, strategic planning, program management, and program results and accountability. In February 2007, the Office of Management and Budget (OMB) released its PART assessment of the EEOC. The EEOC was rated as Not Performing- Results Not Demonstrated. OMB noted that the Agency lacks baselines and ambitious targets for some of its performance measures; the Agency does not measure the performance of its partners in achieving goals using EEOC’s performance measures or alternative measures; and the Agency needs to develop an optimal organizational structure for operations. To improve a plan was developed to focus on three broad areas: 1) identify and implement challenging annual targets and final outcome goals for all agency performance measures; 2) develop in collaboration with EEOC partners methods for measuring performance that support EEOC goals; and 3) continue to implement structural changes and other recommendations to improve efficiency and effectiveness of the program. It is imperative that management collaborate with its OMB liaison to ensure that progress is made in the recommended areas since the PART results may be used in future funding decisions for the Agency.
National Contact Center (NCC)
In January 2007, the National Association of Public Administration (NAPA) issued results of its study that echoed many of the concerns that OIG reported in the previous two Semiannual Reports. For example, NAPA cited Agency shortcomings in communication with stakeholders, pursuit of remedial actions in problem areas, and lack of baseline metrics. The NAPA report found that EEOC was making good progress in some areas, including planning for increasing NCC call volume and planning to integrate and streamline processes and technology. Phase II of the NAPA study, requested by the House Appropriations Committee in July 2006, was not funded.
The NCC pilot evaluation was extended in fiscal year 2007. An anticipated decision on the permanence of the NCC is expected by fiscal year 2008. OIG will continue to monitor NCC activities.
The Audit and Evaluation Program supports OIG’s strategic goal to improve the economy, efficiency, and effectiveness of EEOC programs, operations, and activities.
Audit of the Equal Employment Opportunity Commission’s Fiscal Year 2006 and 2005 Financial Statements (OIG Report No. 2006-03-FIN)
The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Cotton and Company LLP, to audit the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal years 2006 and 2005. Cotton and Company LLP issued an unqualified opinion on EEOC’s FY 2006 and 2005 financial statements. Further, no matters involving the internal control and its operation was considered to be a reportable condition. Cotton and Company LLP also reported that EEOC’s financial management systems substantially complied with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA), and found no reportable noncompliance with laws and regulations it tested.
Management Letter Report for FY 2006 Financial Statement Audit (OIG Report No. 2006-04-FIN)
On February 9, 2007, OIG issued the management letter in connection with the FY 2006 financial statement audit. This year’s management letter identified internal control weaknesses relating to: Review of Outstanding Accounts Payables and Undelivered Order balances; Quality Assurance Procedures over the Financial Statements and the Performance and Accountability Report (PAR); Time and Attendance Reporting; Physical Inventory of Accountable Property; and Information Technology. Recommendations to the Chief Financial Officer (CFO) included refining the year- end review process of accounts payables and undelivered orders, and improving the quality control procedures for reviewing final versions of the financial statements and related footnotes to ensure that information to be reported in the PAR is complete, accurate, consistent and timely. Recommendations to the Office of Information Technology (OIT) included: (1) establish documented performance goals for the network that specify expectations for network availability; (2) increase disk usage and processing; (3) consistently enforce remote access request procedures and ensure telework authorization forms are approved; (4) revise policy for password minimum lengths, expiration/change intervals and account lockout procedures; and (5) ensure that necessary software patches and security hot fixes are installed on the network in a timely manner.
Agency Compliance with the Federal Manager’s Financial Integrity Act (FMFIA) (OIG Report No. 2006-09-AIC)
OIG issued its annual report to the Chair validating the Agency’s compliance with the FMFIA. Agency regulation, EEOC Order 195.001 Management Accountability and Controls requires 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 reviewed: (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 laws and regulations 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 2006 FMFIA Assurance Statement and Assurance Statement Letter, with supporting documents. OIG concluded that the Agency’s management control evaluation was conducted in accordance with OMB’s standards and concurred with ORIP’s assertion that a material weakness was found in the Agency’s Information Security Program. This weakness was identified in an independent evaluation of the Agency’s implementation of Federal Information Security Management Act of 2002 (FISMA) for FY 2006 which disclosed a significant deficiency in the Information Security Program. Based on recent revisions to the Office of Management and Budget Circular A-123, Management’s Responsibility for Internal Control guidance, the Agency is required to report any FISMA significant deficiency as a material weakness.
Review of the October 31, 2006 Shelter-In-Place (SIP) Drill (OIG Report No. 2007-03-AMR)
EEOC holds periodic Shelter-In-Place (SIP) emergency drills at Headquarters, as required by Federal Property Management Regulations 41 CFR Part 101-20 and Executive Order 12656. The most recent SIP drill was held in October 2006. After OIG obtained and analyzed written documents and interviewed Agency staff to determine to what degree objectives were met and to identify areas of improvement. Our observations and areas of concern were reported in a Management Advisory issued on March 29, 2007. Significant weaknesses in SIP planning and execution included:
The management advisory offered changes that EEOC should implement to SIP planning and drills to improve overall performance during responses to emergency situations and ensure maximum protection from an external threat.
Management Advisory on EEOC’s Performance Reporting (OIG Report No. 2005-02-AMR)
The OIG completed Phase I of a review of key Agency performance measures, thereby establishing baseline information for future planned work in this area. Phase I focused on the reliability of FY 2004 data for three key Agency performance measures: 1) percentage of private sector cases resolved within 180 days; 2) satisfaction with private sector mediation services; and 3) success rate of litigation. Phase II will assess FY 2007 data in the same areas, to determine what progress the Agency has made. OIG plans to gather much of the data in the 4th quarter of FY 2007, with the remainder in FY 2008.
Preliminary findings indicate that case files have adequate documentation to support the accuracy of time taken to close cases; overall litigation success data is accurate but data entry errors need to be reduced; and mediation data is accurately reported but may not be reliable.
Case Study - Office of Inspector General Frequent Telework Pilot Program (OIG Report No. 2006-07-AMR)
On March 28, 2007, OIG issued a report that found the use of frequent telework by OIG to reduce infrastructure costs was successful. OIG can reduce the space it occupies in EEOC’s Headquarters building without reducing productivity. The report found the OIG’s cost savings from real estate will outweigh the costs of frequent telework with an estimated five-year net savings of $66,475.
The report recommends OIG’s allocation of office and associated shared space be reduced by 325 square feet upon EEOC’s tenancy under a new lease, in August 2008. The precise amount of the reduction depends on:
While the Pilot did not directly address how frequent telework may function in other EEOC offices, the findings from the Pilot combined with the results from previously issued telework reports demonstrate the strong potential for substantial cost savings in the other EEOC offices, while maintaining and/or improving operational related performance.
2007 Office of Human Resources (OHR) Reviews
In the next reporting period, OIG will provide the Chair an updated status on the Agency’s progress in implementing the strategic management of human capital initiative of the President’s Management Agenda. We will also evaluate the Agency’s progress in implementing the recommendations contained in the March 2006 Office of Personnel Management’s (OPM) audit report on EEOC’s Human Resources Operations.
Review of Best Practices Related to the Federal Managers’ Financial Integrity Act (FMFIA) Process
The OIG is in the process of identifying best practices used by other federal agencies regarding the FMFIA process, to include implementation, execution and communication. The objective is to identify various internal control assessment tools used by other agencies and to provide this information to Agency management to assist in improving their FMFIA evaluation and reporting activities.
Review of Single Audit Act Reports
During the reporting period, the OIG reviewed nine 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 for the FEPAs which involved EEOC funds (See Appendix III). 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.
Audit Follow-Up
Section 5(a)(1) of the Inspector General Act of 1978, as amended, requires that semiannual reports include a summary description of significant problems, abuses, and deficiencies relating to the Agency’s administration of programs and operations disclosed by the OIG during the reporting period. The following table shows reports issued during the current 6 month period (October 1, 2006 – March 31, 2007) that contained findings:
| Fiscal Year | Report Number | Report Title | Date Issued | Findings |
|---|---|---|---|---|
| FY 2007 | 2006-03-FIN | Audit of FY 2006 & 2005 Financial Statements | November 15, 2006 | Yes |
| FY 2007 | 2006-04-FIN | Management Letter Report for FY 2006 Financial Statement Audit | February 9, 2007 | Yes |
| FY 2007 | 2007-03-AMR | Review of October 31, 2006 Shelter-In-Place (SIP) Drill | March 29, 2007 | Yes |
| FY 2007 | 2005-02-AMR | Management Advisory of EEOC’s Performance Reporting | March 29, 2007 | Yes |
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. The following table shows those activities in previous semiannual reports on which corrective actions have not been completed:
| Fiscal Year | Report Number | Report Title | Date Issued | Findings |
|---|---|---|---|---|
| FY 2004 | 01-14-AMR | Evaluation of Performance and Results Reporting | January 30, 2004 | Yes |
| FY 2006 | 2006-05-AEP | Federal Information Security Management Act Review of Fiscal Year 2006 | September 22, 2006 | Yes |
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 commencement 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 commencement of the reporting period for which no management decision has been made.
The Investigative Program 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. The OIG received 271 inquiries in the reporting period.
| Investigative Inquiries Received October 1, 2006 – March 31, 2007 |
|
|---|---|
| Allegations | Total |
| Charge Processing | 137 |
| Other Statutes | 10 |
| Title VII | 108 |
| Mismanagement | 2 |
| Ethics | 4 |
| Backgrounds | 7 |
| Theft | 0 |
| Other Criminal Violations | 2 |
| Fraud | 1 |
| TOTALS | 271 |
Unauthorized Outside Practice of Law
The OIG conducted an investigation of an employee who allegedly was involved in the unauthorized outside practice of law. After a thorough investigation, OIG found that the employee was engaged in the unauthorized practice, and did not seek proper authorization from Agency officials before doing so. In addition, the OIG found that the employee represented an individual during an EEOC mediation while employed with the EEOC. Accordingly, OIG found that the evidence adduced supported a finding that the employee violated multiple sections of the Standards of Ethical Conduct for Employees of the Executive Branch. A report of OIG’s findings was issued to appropriate Agency management officials.
Defamation
The OIG conducted a preliminary inquiry into allegations that an attorney with the EEOC had defamed a respondent in statements made to a local television news station. The complainant also alleged that the attorney was summonsing individuals to be a part of the class action lawsuit against the respondent when the potential class members never stated that they wanted to be a part of the suit. After a preliminary investigation in this matter, it was determined that this matter is outside of the purview of the OIG.
Improper Destruction of Records
The OIG completed the investigation of the alleged intentional destruction of records to avoid discovery in connection with a legal proceeding with the Agency. After reviewing all documentary evidence and conducting numerous witness interviews, the OIG determined the record destruction was not done with any criminal intent to avoid turning over the information during the hearing process. The records destroyed did not appear to adversely affect the outcome of the case. OIG reported its findings to Agency management officials.
Retaliation
This allegation involved a complainant who reported a perceived criminal violation to the OIG, and was allegedly subsequently retaliated against after reporting the allegation. As a result of our review of all related documentation involving the adverse action to demote the individual, and interviews of witnesses, subjects and the complainant, OIG determined there was no nexus to the complainant’s filing and the action taken, thus no violation was found.
Conflict of Interest
OIG conducted an investigation into allegations that an employee committed a conflict of interest violation by becoming personally and substantially involved in charges of discrimination filed against the employer of an immediate family member. OIG found that the subject employee’s involvement was minimal and did not constitute personal and substantial involvement required to establish a prohibited conflict of interest.
OIG has ongoing investigations in several field offices involving sexual harassment, prohibited personnel practices, ethics violations, conflicts of interest, retaliation, falsification of Government records, misuse of Government issued credentials, false statements, and misuse of Government property, the Agency seal, and the Government credit card.
Career Development and Internship Program for Historically Black Colleges and Universities (HBCUs)
The OIG has developed policies and procedures for implementing an Office of Inspector General Career Development and Internship Program. The Programs goals and objectives include the following:
The program will be implemented on or before June 30, 2007.
Professional Development Activities
OIG participated in the President’s Council on Integrity and Efficiency and Executive Council on Integrity and Efficiency activities and completed formal courses that included:
| Report Title | OIG Report Number | Date Issued | Questioned Costs | Funds Put To Better Use | Unsupported Costs |
|---|---|---|---|---|---|
| Frequent Telework Pilot Program | 2006-07-AMR | 03/28/07 | $0 | $0 | $0 |
| Management Advisory Performance Reporting | 2005-02-AMR | 03/29/07 | 0 | 0 | 0 |
| Shelter in Place Drill | 2007-03-AMR | 03/29/07 | 0 | 0 | 0 |
| Management Letter FY 2006 Financial Statement Audit | 2006-04-FIN | 02/09/07 | 0 | 0 | 0 |
| Agency Compliance with FMFIA | 2006-09-AIC | 11/15/06 | 0 | 0 | 0 |
| Audit of FY 2006 and 2005 Financial Statements | 2006-03-FIN | 11/15/06 | 0 | 0 | 0 |
| Totals | $0 | $0 | $0 |
| IG ACT CITE | REPORTING REQUIREMENTS | PAGE |
|---|---|---|
| Section 4 (a)(2) | Review of Legislation and Regulations | N/A |
| Section 5 (a)(1) | Significant Problems, Abuses and Deficiencies | 5-7/11 |
| Section 5 (a)(2) | Recommendations With Respect to Significant Problems Abuses and Deficiencies | 5-7 |
| Section 5 (a)(3) | Significant Recommendations Included in Previous Reports on Which Corrective Action Has Not Been Completed | 9 |
| 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 | 15 |
| Section 5 (a)(7) | Summary of Significant Reports | 5-7 |
| 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 |
| The State of Alaska, FY 2005 | The Government of the District of Columbia, FY 2005 |
| The State of Ohio, FY 2005 | The State of Connecticut, FY 2005 |
| The State of Wyoming, FY 2005 | The State Louisiana, FY 2005 |
| The State of Illinois, FY 2005 | The Tribal Council Cherokee Nation, FY 2005 |
| The State of Oklahoma, FY 2005 |
Report suspected fraud, waste, abuse or mismanagement in EEOC, call your
Inspector General’s Hotline
1-800-849-4230
Or e-mail: Inspector.General@eeoc.gov
You may also write to:
OFFICE OF INSPECTOR GENERAL
P.O. BOX 18212
WASHINGTON, D.C. 20036-8212
All information is confidential, and you may remain anonymous
This page was last modified on June 12, 2007.