Management Report to

Management Report to

Accompany the Office of

Inspector General Semiannual

Report to Congress

FOR THE PERIOD APRIL 1, 2025 THROUGH SEPTEMBER 30, 2025

SME

Cgement Report to

ana

Accompany the Office of

Inspector General Semiannual

Report to Congress

April 1, 2025 – September 30, 2025

T

he Inspector General Act of 1978, as amended (Inspector General Act), requires the

Securities and Exchange Commission (SEC) to transmit to the appropriate committees or

subcommittees of the U.S. Congress a Management Report, containing certain statistical

tables and any comments deemed appropriate, to accompany the Office of Inspector

General’s (OIG’s) Semiannual Report.1 This Management Report presents the required

information for the reporting period of April 1, 2025, through September 30, 2025.

I. Overview of SEC Audit Follow-up Activities

The SEC is committed to completion of timely corrective actions on OIG audit, inspection,

and evaluation recommendations. At the commencement of this semiannual reporting period,

there were 22 open OIG recommendations. During the period, management succeeded in

obtaining OIG concurrence to close 15 recommendations. Of the 15 closed recommendations,

management submitted 12 (or 80 percent) requests for closure in less than one year. The SEC

also received five new OIG reports during the reporting period, two of which contained no

recommendations and three of which contained a combined total of 10 recommendations

for improving the agency’s processes and programs. At period-end, final action was pending on

17 recommendations from five reports.

1

The SEC’s Management Response is based on the requirements of the Inspector General Act as amended by the James M. Inhofe National

Defense Authorization Act for Fiscal Year 2023, Pub. L. No. 117-263, § 5273, Dec. 23, 2022, 136 Stat. 2395, 3241.

MANAGEMENT REPORT

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II. Reports on Instances of Whistleblower Retaliation

The Inspector General Act requires the SEC Management Report to include a statement with respect

to any settlement agreement entered into by the agency with an official found by the Inspector

General to have engaged in retaliation against a whistleblower. The SEC has no such settlement

agreements to report.

III. Reports with Monetary Savings

The Inspector General Act requires the SEC Management Report to include statistical information

regarding any management decision or final action taken on each audit, inspection, or evaluation

report on which final action had not been taken before the reporting period. The information

required to be reported includes the dollar value of any “disallowed cost” or “recommendation that

funds be put to better use.”

The Inspector General Act defines a “disallowed cost” as a cost questioned by the OIG that agency

management has decided should not be charged to the agency. The Inspector General Act defines

“recommendation that funds be put to better use” to mean an OIG recommendation that funds could

be used more efficiently if management took actions to implement and complete the accompanying

recommendation. During the reporting period, OIG did not issue a report that contained any

questioned costs or any recommendations that funds be put to better use. In addition, there are no

outstanding management decisions on questioned costs or recommendations that funds be put to

better use identified in OIG reports from prior reporting periods.

Additional information regarding management decisions and final actions taken during the reporting

period for reports on which final action had not been taken before the reporting period began is

included below in the next section and Table 1.

IV. Reports with Pending Corrective Action

The Inspector General Act requires the SEC Management Report to include a statement with

respect to each audit, inspection, and evaluation report on which a management decision has been

made but final action has not been taken. Table 1 presents the required information.

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U.S. SECURITIES AND EXCHANGE COMMISSION

TABLE 1. REPORTS PENDING FINAL ACTION AT START OF REPORTING PERIOD

(REPORTING PERIOD APRIL 1, 2025, THROUGH SEPTEMBER 30, 2025)

Report No./Title

For the 4 Reports with Pending

Final Action at Start of Period

Report Date

Status of Final Action

(Final Action Completed: 1 Report

Pending at End of Period: 3 Reports)

Report 574: Fiscal Year 2022

Independent Evaluation of the

SEC’s Implementation of the

Federal Information Security

Modernization Act of 2014

11/15/2022

Twelve of the report’s 13 recommendations have

been closed with OIG concurrence. Corrective

action addressing the remaining recommendation

is in progress, with anticipated completion by

spring 2026.

Report 580: Fiscal Year 2023

Independent Evaluation of the

SEC’s Implementation of the

Federal Information Security

Modernization Act of 2014

12/20/2023

Final action taken during reporting period.

9/23/2024

Four of the report’s six recommendations have

been closed with OIG concurrence. Corrective

actions addressing the remaining two

recommendations were completed and pending

with the OIG for closure at the end of the reporting

period.

Report 583: Enhanced

Planning, Performance

Measurement and Evaluation,

and Information Can Improve

Oversight of Broker-Dealer

Examinations

Report 584: Fiscal Year 2024

Independent Evaluation of the

U.S. Securities and Exchange

Commission’s Implementation

of the Federal Information

Security Modernization Act of

2014

11/25/2024

Four of the report’s ten recommendations have

been closed with OIG concurrence. Corrective

actions addressing the remaining six

recommendations are in progress, with anticipated

completion by spring 2026.

All management decisions for the listed reports were made during prior reporting periods. For Report 580 listed

in Table 1 for which final action was taken during the reporting period, there were no questioned costs or

recommendations that funds be put to better use.

MANAGEMENT REPORT

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U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, DC 20549

SEC.gov