Management Report to

Management Report to

Accompany the Office of

Inspector General Semiannual

Report to Congress

FOR THE PERIOD OCTOBER 1, 2023 THROUGH MARCH 31, 2024

SEC

Management Report to

Accompany the Office of

Inspector General Semiannual

Report to Congress

October 1, 2023 – March 31, 2024

S

ection 5(b) of the Inspector General Act of 1978, as amended (Inspector General Act),

requires the Commission 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

October 1, 2023 through March 31, 2024.

I. Overview of SEC Audit Follow-up Activities

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

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

were 12 open OIG recommendations. During the period, management succeeded in obtaining OIG

concurrence to close nine recommendations. Of the nine closed recommendations, management

submitted six (or 67 percent) requests for closure in less than one year. The SEC also received

three new OIG reports during the reporting period containing a total of 23 recommendations

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

26 recommendations from five reports.

1 The SEC’s Management Response is based on the requirements of Section 5 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.

MA N AGEMEN T R EPORT

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II. Reports on Instances of Whistleblower Retaliation

Section 5(b)(3) of 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

Section 5(b)(2) of 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

Section 5(b)(4) of 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. S E CU RITIES AND E XCH ANGE COMMI SSI ON

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

(REPORTING PERIOD OCTOBER 1, 2023 THROUGH MARCH 31, 2024)

Report No./Title for the 6

Reports with Pending Final

Action at Start of Period

Report

Date

Report 546: Audit of SEC’s

Compliance with the

Federal Information Security

Modernization Act for Fiscal

Year 2017

3/30/2018

Nineteen of the report’s 20 recommendations

have been closed with OIG’s concurrence.

Corrective actions addressing the remaining

recommendation are in progress, with

anticipated completion in summer 2024

9/30/2020

Six of the report’s seven recommendations

have been closed with OIG concurrence.

Corrective actions addressing the remaining

recommendation are in progress, with

anticipated completion in summer 2024.

11/15/2022

Twelve of the report’s 13 recommendations

have been closed with OIG concurrence.

Corrective actions addressing the remaining

recommendation are in progress, with

anticipated completion by fall 2025.

2/15/2023

Final action taken during reporting period.

2/28/2023

Final action taken during reporting period.

7/25/2023

Final action taken during reporting period.

Report 562: Opportunities

Exist To Improve the SEC’s

Management of Mobile

Devices and Services

Report 574: Fiscal Year 2022

Independent Evaluation of

the SEC’s Implementation

of the Federal Information

Security Modernization Act

of 2014

Status of Final Action Final Action

Completed: 3 Reports/ Pending at End

of Period: 3 Reports

Report 576: Enforcement

Investigations—Measures

of Timeliness Showed

Some Improvement But

Enforcement Can Better

Communicate Capabilities

for Expediting Investigations

and Improve Internal

Processes

Report 577: The SEC

Supported Federal Small

Business Contracting

Objectives, Yet Could Make

Better Use of Data and Take

Other Actions To Further

Promote Small Business

Contracting

Report 579: The SEC Took

Appropriate Workplace

Safety Actions in

Accordance With Pandemic

Guidance But Could

Improve Communications

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

3 reports listed in Table 1 for which final action was taken during the reporting period, none of the

reports involved any questioned costs or recommendations that funds be put to better use.

Section 5(b)(4)(A) of the Inspector General Act states that a report may be excluded from the list

of reports pending final action if (i) a management decision was made on that report within the

preceding year or (ii) the report is under formal administrative or judicial appeal or management

has decided to pursue a legislative solution. In this report, the SEC did not exclude any such reports

from this list.

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U. S . S E CU RITIES AND E XCH ANGE COMMI SSI ON

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, DC 20549

SEC.gov