EEOC Fiscal Year 2022 Agency Financial Report

November 9, 2022

 

HOW THIS REPORT IS ORGANIZED

The Fiscal Year 2022 Agency Financial Report (AFR) will describe the financial management of the U.S. Equal Employment Opportunity Commission (the EEOC or agency) and provide high-level performance information, including management challenges. Pursuant to guidance from the Office of Management and Budget (OMB), we organize our AFR into the following major sections:

• Management Discussion and Analysis (MD&A): The MD&A provides an overview of the EEOC’s performance and financial information. The MD&A highlights our strategic objectives and our accomplishments in achieving our mission. This section also highlights the agency’s financial results and provides management’s assurances on the agency’s internal controls.
• Financial Section: This section outlines our efforts to be good stewards over the funds the agency receives to carry out its mission, including an independent auditor’s opinion on the agency’s financial statements.
• Other Information: This section includes the Inspector General’s Statement on Management Challenges, the agency’s progress and plans to address them, and summary tables related to our Financial Statement Audit and Management Assurances. 
• Appendices: Contain information on EEOC’s organization, jurisdiction, leadership, and revolving fund, as well as a glossary of the acronyms used in the report.

 

TABLE OF CONTENTS

A Message from the Chair

Mission, Major Programs, and Organizational Structure

Agency Overview

Statutory Structure

Organization

Performance Goals, Objectives, and Results

EEOC’s Performance Measurement Process

Overview of the Strategic Plan Objectives, Goals, and Performance Measures

Verification and Validation of Data

Program Evaluations

Strategic Goals and Performance Results Summary

Performance Results

Looking Forward

Financial Highlights

Management Assurances

Legal Compliance

Letter from the Inspector General Transmitting Audit

Independent Auditor’s Report

Equal Employment Opportunity Commission Consolidated Balance Sheets

Equal Employment Opportunity Commission Consolidated Statements of Net Cost

Equal Employment Opportunity Commission Consolidated Statements of Changes in Net Position

Equal Employment Opportunity Commission Combined Statements of Budgetary Resources

Notes to the Consolidated Financial Statements

Inspector General’s Statement

Summary of Financial Statement Audit and Management Assurances

Payment Integrity

Recapture of Improper Payments

Fraud Reduction Report

Civil Monetary Penalty Adjustments for Inflation

Appendix A: Organization and Laws Enforced

Appendix B: EEOC Field Offices

Appendix C: Biographies of the Chair, Vice Chair, and Commissioners

Appendix D: Glossary of Acronyms

Appendix E: Internet Links

Appendix F: Revolving Fund

Appendix G: Acknowledgments

We Welcome Your Comments

 

MESSAGE FROM THE CHAIR

I am pleased to present the U.S. Equal Employment Opportunity Commission (EEOC) Agency Financial Report (AFR) for fiscal year 2022.  It is an honor to lead the agency’s dedicated employees, who are committed to advancing equal opportunity for all in the workplace.

The EEOC was created in direct response to calls for racial justice at the historic 1963 March on Washington for Jobs and Freedom with a clear mission — to prevent and remedy discrimination in our nation’s workplaces. As we approach the 60^th anniversary of the March on Washington, we recognize that the nation has made significant progress since then in advancing civil rights, but that a great deal of work remains to fulfill the promise of equality for America’s workers. Today, promoting equal employment opportunity and enforcing the nation’s federal workplace anti-discrimination laws remain as necessary as ever. The EEOC continues to work toward an America where all have a fair chance to work, provide for their families, and contribute to our economy.

As the primary federal agency that enforces laws against employment discrimination, the EEOC continued to play a critical role in fiscal year 2022 in advancing equal opportunity in the workplace. As detailed in this report, during the past fiscal year the agency focused on addressing systemic discrimination in all forms and on all bases; advancing racial justice and equity in the workplace; preventing and remedying unlawful retaliation; enforcing pay equity; supporting diversity, equity, inclusion, and accessibility (DEIA); and addressing the use of artificial intelligence in employment decisions.

The EEOC strategically leveraged its appropriations in fiscal year 2022 to achieve change on a broad scale using all of its tools to combat discrimination, including outreach, technical assistance, and enforcement.  Once again, the agency demonstrated that the EEOC is a sound investment for the American people, recovering more in monetary benefits for victims of discrimination than our $420 million budget, while making significant progress in each of its priority areas. The successes of fiscal year 2022 were in part made possible through efforts to strengthen and rebuild the enforcement capacity of the agency. During my tenure as Chair, I have focused on strategic use of the agency’s resources to ensure that the EEOC can vigorously enforce the law, including effectively addressing an increased demand for the agency’s services. During fiscal year 2022, the charges of discrimination filed with the EEOC, as well as calls and emails to the agency’s contact center, increased significantly compared with fiscal year 2021. To ensure that the agency has the resources and tools it needs to continue to protect and advance civil rights, in fiscal year 2022, I focused on robust workforce planning and hiring to continue to strategically grow our enforcement capacity. As such, I authorized hiring to fill 352 positions, the majority of which were front-line positions (investigators, mediators, attorneys, and administrative staff, among other positions) to help strengthen our ability to fulfill the agency’s vital role in preventing and remedying employment discrimination. The addition of new employees in mission critical positions was essential, but must be followed by additional investments to ensure that the EEOC has resources commensurate with its task and the increase in new charges filed in fiscal year 2022.   

I am also pleased to report that the EEOC has once again received an unmodified opinion from an independent audit of our financial statements. As required by the Federal Managers Financial Integrity Act (FMFIA), the AFR provides reasonable assurances about the agency’s internal controls. Moreover, the financial data and performance results provided in the AFR are reliable and complete. 

The EEOC was created as a result of a strong national commitment to civil rights. As such, it serves as tangible proof that the causes of justice and equality are greater than hatred, division and bigotry. That legacy and our work are critically important to the American people and to this administration as we rebuild the economy to work for everyone and confront the urgent issue of systemic discrimination.

 

Charlotte A. Burrows
Chair
U.S. Equal Employment Opportunity Commission

 

MANAGEMENT DISCUSSION AND ANALYSIS

The Equal Employment Opportunity Commission’s (EEOC or agency) Agency Financial Report (AFR) provides financial information and an overview of programs, accomplishments, and challenges that enable the President, Congress, and the American people to assess the EEOC’s performance and accountability for the resources entrusted to it for the fiscal year (October 1 through September 30). The report is prepared in accordance with the requirements of OMB Circular No. A-136, Financial Reporting Requirements.

The EEOC provides an AFR with a primary focus on financial results and a high-level discussion of performance results, along with an Annual Performance Report (APR), which details strategic goals and performance results. The EEOC will publish the APR in coordination with its Congressional Budget Justification in February 2023. Both reports will be available at https://www.eeoc.gov/budget-and-performance.

MISSION, MAJOR PROGRAMS, AND ORGANIZATIONAL STRUCTURE

• MISSION: Prevent and remedy unlawful employment discrimination and advance equal opportunity for all in the workplace.
• VISION: Respectful and inclusive workplaces with equal employment opportunity for all.

AGENCY OVERVIEW

Title VII of the Civil Rights Act of 1964 (Title VII) created the EEOC to enforce protections against employment discrimination on the basis of race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), and national origin. Congress subsequently vested the EEOC with responsibility to enforce the Equal Pay Act of 1963 (EPA), the Age Discrimination in Employment Act of 1967 (ADEA), Sections 501 and 505 of the Rehabilitation Act of 1973, Titles I and V of the Americans with Disabilities Act of 1990 (ADA), and Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA). In addition, in 1972, Congress further expanded the agency’s responsibilities by providing federal government employees the protections of Title VII and providing the EEOC with independent litigation authority against private employers under Title VII.

STATUTORY STRUCTURE

The EEOC is led by six presidential appointees – five Commissioners (including the Chair and Vice Chair) who serve staggered five-year terms and the General Counsel. No more than three Commissioners (including the Chair and Vice Chair) may be from the same political party. The Chair is responsible for the administration and implementation of policy, the enforcement program, financial management, and day-to-day operations of the Commission. The Commissioners participate equally in the development and approval of Commission policies, issue charges of discrimination where appropriate, and authorize the filing of lawsuits. The General Counsel supports the Commission and provides direction, coordination, and supervision to the EEOC's litigation program.

*In hold-over status

**Gwendolyn Young Reams was named acting General Counsel on June 8, 2022.

ORGANIZATION

The EEOC accomplishes its mission through component offices that administer various programs. For more information about specific EEOC offices, please see Appendix A.

These programs are carried out through a network of 53 district, field, area, and local offices.  For more information about the EEOC Field Offices across the nation, please see Appendix B.

PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

EEOC’s PERFORMANCE MEASUREMENT PROCESS

The Government Performance and Results Modernization Act of 2010 (5 U.S.C. 306, as amended) requires executive departments, government corporations, and independent agencies to develop and post a Strategic Plan on their public websites every four fiscal years. The implementing guidance in Circular No. A-11 from OMB instructs agencies on the necessary elements required in an agency’s strategic plan and the requirements to publish a new strategic plan with the beginning of each new term of an administration.

The U.S. Equal Employment Opportunity Commission Strategic Plan for Fiscal Years 2018-2022 (Strategic Plan) is located at https://www.eeoc.gov/us-equal-employment-opportunity-commission-eeoc-strategic-plan-fiscal-years-2018-2022.

The Strategic Plan established three overarching strategic objectives and twelve performance measures to gauge the agency’s progress in meeting these objectives. Goal leaders, assigned by program office representatives in headquarters, lead the efforts on each of the agency’s performance measures. The EEOC conducts periodic performance measure reviews. During these reviews, program office representatives report on the progress made to achieve the agency’s performance measures.   

The EEOC reports on performance measures each year. In the agency’s Annual Performance Plan (APP), issued as part of the OMB’s budget request, the EEOC identifies the level of planned performance to achieve in the fiscal year, along with performance goals and key milestones that align with the EEOC’s Strategic Plan and agency priorities. In the agency’s Annual Performance Report, issued in coordination with the agency’s Congressional Budget Justification in February each year, the EEOC reports on progress achieving the goals and objectives in the agency’s Strategic Plan and APP, along with performance and program results achieved for the previous fiscal year. 

OVERVIEW OF THE STRATEGIC PLAN OBJECTIVES, GOALS, AND PERFORMANCE MEASURES

In accordance with the Government Performance and Results Modernization Act of 2010, the Commission approved the EEOC’s Strategic Plan on February 12, 2018. To do so, the agency engaged in a comprehensive assessment of its programs and priorities. As stated above, under this Strategic Plan, the EEOC focuses on three strategic objectives to achieve its critical mission to prevent and remedy unlawful employment discrimination and advance equal opportunity for all in the workplace and to pursue its vision of respectful and inclusive workplaces with equal employment opportunity for all.

Strategic Objective I, to combat and prevent employment discrimination through the strategic application of the EEOC’s law enforcement authorities, reflects the EEOC’s primary mission of preventing unlawful employment discrimination through: 1) the administrative (investigation and conciliation) and litigation mechanisms Congress has entrusted to the agency with regard to private employers, labor organizations, employment agencies, and state and local government employers; and 2) the adjudicatory and oversight mechanisms Congress has entrusted to the agency with regard to federal employers. 

There are two outcome goals and five performance measures for Strategic Objective I.

Strategic Objective II, to prevent employment discrimination and promote inclusive workplaces through education and outreach, reflects the EEOC’s obligation to deter employment discrimination before it occurs. Investigations, conciliations, and litigation are only some of the means that the EEOC uses to fulfill its mission and vision. Educational and outreach programs, projects, and events are also cost-effective law enforcement tools because they promote understanding of the law and voluntary compliance with the law. All parties benefit when the workplace is free from discrimination, and everyone has access to equal employment opportunity.

There are two outcome goals and three performance measures for Strategic Objective II.

The Management Objective, achieving organizational excellence, seeks to improve management functions with a focus on information technology, infrastructure enhancement, and accountable financial stewardship. This requires integration and coordination across the agency to foster organizational excellence from both internal and external perspectives.

The Commission has developed two outcome goals and four performance measures for its Management Objective.

The agency’s progress on the strategic objectives, outcome goals, and related performance measures is discussed below.

VERIFICATION AND VALIDATION OF DATA

The agency’s private sector, federal sector, and litigation programs require accurate enforcement data, as well as reliable financial and human resources information, to assess the EEOC’s operations and performance results and make sound management decisions. The EEOC will continue efforts to ensure the accuracy of program information and analysis of the information.

The EEOC systematically reviews the information collected in its databases for accuracy by using statistical software (e.g., SAS, PowerBI, etc.) and program reviews of a sample of records during field office technical assistance visits. Additionally, headquarters offices regularly conduct analyses to review the information collected in order to identify erroneous entries requiring correction to collection procedures.

The modernization of the agency’s legacy Integrated Mission System (IMS) application to the new Agency Records Center (ARC) system continues to improve the collection and validation of information for our program data related to charge intake, investigation, mediation, conciliation, and FEPA functions – migrating away from manual activity-based data entry to automated event-driven recordation.  During these modernization efforts, the EEOC has identified many areas in which we will be able to further improve and automate our current processes and related data integrity. Because several performance measures require data to assess our achievements, it is important that as the agency continues to refine the ARC system, the EEOC will be better able to obtain more reliable data more quickly. The EEOC’s Office of Inspector General (OIG) continues to review the agency’s data validity and verification procedures, information systems, and databases and offers recommendations for improvement. We use the OIG’s information and recommendations to continually improve our systems and data.

PROGRAM EVALUATIONS

Program evaluation is an important component of the EEOC's effort to ensure that its programs are operating as intended and achieving results. Program evaluation is a thorough examination of program design and operational effectiveness that uses rigorous methodologies and statistical and analytical tools. These evaluations also rely on external and internal agency expertise to enhance analytical perspectives and to lend credence to the methodologies employed, the evaluation processes and findings, and any subsequent recommendations for the program under review.

Independent program evaluations played an important role in formulating the strategic goals and objectives detailed in the EEOC’s Strategic Plan and helped shape some of the program issues and key focus areas for improvement. They are an invaluable management tool to guide the agency’s strategic efforts in attaining high levels of productivity and program efficiency, effectiveness, and accountability. Consistent with the agency’s focus on improving the effectiveness of government through rigorous evaluation and evidence-based policy initiatives, the EEOC will continue to consider appropriate program areas for evaluation each year. This review will ensure that the agency's efforts align with the EEOC’s budget and other programmatic priorities.

In fiscal year 2022, the agency continued its work on the following evaluation projects:  The Interagency Agreement (IAA) between the EEOC and The Committee on National Statistics of the National Academies of Sciences, Engineering, and Medicine (National Academies) for a Panel to Evaluate the Quality and Utility of Compensation and Hours Worked Data Collected from U.S. Employers by the EEOC through the EEO-1 Project; the Mediation Survey Modernization Project; and the EEOC’s Data and Modernization Program.

IAA between the EEOC and the National Academies for a Panel to Evaluate the Quality and Utility of Compensation and Hours Worked Data Collected from U.S. Employers by the EEOC through the EEO-1 Project. In 2020, the EEOC contracted with the National Academies to evaluate the EEOC’s historic, first-time collection of pay data from certain private employers and federal contractors between July 2019 and February 2020. On July 28, 2022, the National Academies issued an approximately 300-page Consensus Study Report, which concluded that the data EEOC collected may be used to prioritize investigations and the agency’s allocation of resources to identify potential pay discrimination. The report also provided recommendations for improving the collection of pay data in the future. Many of the recommendations complement efforts already underway as part of the agency’s ongoing modernization of its EEO data collections and data analytics. The EEOC is examining the report from the National Academies and will use it to inform the agency’s approach should it decide to again undertake pay data collection in the future.

Mediation Survey Modernization Project.EEOC mediation participants are now able to share their feedback by completing a survey electronically, in English or Spanish. The project’s benefits include fewer steps in the process of distributing the survey to participants, faster receipt of survey responses, reduced data entry, and elimination of postage. In fiscal year 2022, the project included EEOC mediators as well as mediation participants. The EEOC also increased its efforts to reach underserved communities by making the e-survey available in Haitian/Creole and Chinese (Simplified).

The EEOC’s Data and Analytics Modernization Program. Beginning in fiscal year 2018 and continuing through fiscal year 2023, the goals of the modernization program are to: 1) enhance transparency of agency functions and operations; 2) reduce burden on our stakeholders; 3) augment agency use of modern data analytics to drive data-driven decision making; and 4) promote greater public access to the data.

STRATEGIC GOALS AND PERFORMANCE RESULTS SUMMARY

As discussed above, the EEOC’s Strategic Plan established a national framework to achieve the agency’s mission by pursuing three strategic objectives and their underlying goals. The Plan also identified strategies for achieving each outcome goal and identified 12 performance measures for gauging the EEOC’s progress for fiscal year 2022. The chart below summarizes the agency’s progress in meeting these measures.

In fiscal year 2022, the EEOC’s ability to make progress on our strategic objectives depended on the agency effectively managing an increased demand for the agency’s services while continuing to adapt to the evolving challenges presented by the COVID-19 pandemic. The agency received more charges of discrimination, as well as increased calls and emails from members of the public seeking the agency’s assistance. During fiscal year 2022, the agency began returning employees to the physical offices while allowing for expanded telework in a new hybrid work environment.  Through the strategic use of the agency’s resources, the EEOC was able to effectively combat employment discrimination during fiscal year 2022.

PERFORMANCE RESULTS

The EEOC’s mission to prevent and remedy employment discrimination guides its work to promote equal employment opportunity and enforce the nation’s federal workplace anti-discrimination laws. As described below, in fiscal year 2022, the agency continued to expand its legacy of civil rights accomplishments.

1. Strengthening the Enforcement Capacity of the Agency

The EEOC has a critical role to play in addressing many of the urgent issues facing our nation — among them systemic discrimination (including harassment); racial and economic justice; unlawful retaliation; pay equity; diversity, equity, inclusion, and accessibility (DEIA); the use of automated technology systems, including artificial intelligence, in employment decisions; and the ongoing civil rights impact of the COVID-19 pandemic. The EEOC requires sufficient resources and tools to continue to protect the civil rights of America’s workers, both now and far into the future. In fiscal year 2022, the agency prioritized ensuring that it had sufficient staff to address its expanding workload. During fiscal year 2022, the EEOC filled 352 positions and ended the year with 2,187 employees onboard. Notably, 297 of the positions filled during fiscal year 2022 were front-line positions (investigators, investigative support assistants, mediators, and attorneys, among other positions). As a result of this hiring effort, the EEOC was able to address critical service and morale issues by restoring staffing losses in key areas. These hires also better position the agency to effectively manage an increased demand for the agency’s services and ensure timely and appropriate resolution of discrimination charges.

During fiscal year 2022, the EEOC successfully recruited, hired, and trained new contact representatives at the EEOC’s Call Center for the public, which is operated by the Intake Information Group (IIG), to ensure that attrition did not result in a decrease in staffing at the IIG. In addition, in June 2022, the IIG launched its new, state-of-the-art Telephony Platform for the EEOC’s 1-800 toll free telephone number. The new platform was designed to provide comparable services to those offered by high volume, private sector call centers. A critical part of the new platform is the updated Interactive Voice Response (IVR), which was implemented in both English and Spanish. The new IVR contains significantly more automated information most often sought by callers to the EEOC’s 1-800 number and presents that information in a user-friendly manner. In addition, the new Telephony system offers other enhancements including the option to receive information via text messaging; IVR provided web access; and real-time customer satisfaction surveys. With the launch and enhancement of the new telephone platform during fiscal year 2022, the EEOC expects to move into fiscal year 2023 with a system that will greatly enhance the agency’s ability to communicate with and provide accurate and timely information to stakeholders.

In fiscal year 2022, the EEOC also focused on strengthening the agency’s ability to combat employment discrimination in the federal sector. These efforts allowed the agency to provide enhanced mission-critical services to federal employees and applicants. For example, in January 2022, the EEOC’s Office of Federal Operations released a Guide to Writing Appeal Briefs for Unrepresented Complainants, intended to assist federal employees and applicants without legal representation who have appeals pending before the EEOC.  Approximately three-quarters of all federal sector appeals on the merits involve self-represented federal employees or applicants and about half of them do not submit appeal briefs. Additionally, in the five-year period from fiscal year 2016 to fiscal year 2020, slightly over one-third of the federal sector appeals decisions that found that agencies had subjected complainants to discrimination involved self-represented employees or applicants. The new guide explains what content should be included in an appeal brief and how it should be organized. The guide also helps make the appeal process more accessible by providing an explanation of how to support or oppose an appeal, sample briefs that can be downloaded and used as templates, and a glossary for technical and legal terms.  

By ensuring that federal sector agencies have a robust EEO program, the EEOC also strengthens its capacity to enforce equal employment opportunity laws in the federal sector. The EEOC’s EEO Education Consortium (EDCON) is a key component in that effort by providing federal sector EEO practitioners an opportunity to develop their skills, network, share resources, and learn. In fiscal year 2022, EDCON introduced its first ever mentoring program, which is offered to all federal EEO professionals. Mentors are GS-14, GS-15 and SES federal employees who have committed their time to mentor the next generation of EEO leaders. EDCON staff also delivered webinars with cutting edge topics such as Building an Inclusive Workplace and Developing Impactful Training in a Virtual Environment. In fiscal year 2022, EDCON continued its successful efforts to dialogue with its membership via social media, as evidenced by the 64% increase in Twitter followers with an impressive 94% engagement rate.

2. Addressing Systemic Discrimination on all Bases

Effectively identifying and investigating systemic discrimination – where a discriminatory pattern, practice, or policy has a broad impact on an industry, company, or geographic area – is central to the mission of the EEOC. Systemic discrimination creates barriers to opportunity that can cause widespread harm to workers, workplaces, and the economy. Without effectively addressing systemic discrimination, the discriminatory patterns, practices, and policies persist, leading to more harm to individuals subject to such practices and potentially more individuals filing charges against their employers. A robust systemic program enables the EEOC to make change on a national, regional, or industry level, while helping substantial numbers of employees at once.

In fiscal year 2022, the EEOC continued to identify and remedy systemic discrimination in all forms and on all protected bases, including unlawful harassment. The EEOC has numerous tools to combat systemic discrimination and harassment, including outreach and education, technical assistance, and enforcement, and uses all of them to achieve change on a broad scale. As a result, the Commission’s systemic enforcement program produced significant results during fiscal year 2022, including resolving 330 systemic investigations on the merits and obtaining $29.7 million in monetary benefits for victims of discrimination. These resolutions also included targeted, equitable relief designed to change employment practices, prevent future discrimination, and bring respondents into compliance with the law.  In fiscal year 2022, the EEOC secured targeted equitable relief in 100% of successful systemic conciliations. Below are some notable examples of systemic investigations that were successfully conciliated in fiscal year 2022:

• A systemic investigation against a major U.S. employer after finding evidence of discriminatory denial of reasonable accommodations on the bases of disability and sex against pregnant employees. The EEOC resolved the matter for $8 million in relief, substantial changes to policies and practices, and reporting to the EEOC to ensure the employer remains in compliance with the law.
• A systemic investigation against a large major U.S. automobile manufacturer after determining the company’s medical examination policy was overly broad, included prohibited medical inquiries and prohibited acquisition of genetic information, and was not job related or consistent with business necessity. The EEOC resolved the investigation for $400,000, a change in the medical examination policy affecting more than 50,000 employees, and a requirement that the employer inform its medical providers of their obligations under the law.  
• The EEOC resolved a systemic investigation relating to a transnational human trafficking operation involving a United States employer’s exploitation and abuse of more than 100 immigrant farmworkers from Mexico, Guatemala, and Honduras working in the United States. This investigation revealed that the employer brought individuals to the United States as migrant farmworkers under the H-2A visa program. Upon the workers’ arrival to the United States, the employer confiscated their passports and refused to return the passports without payment. The EEOC found that the employer engaged in a pattern or practice of discriminating against its Mexican and female H-2A visa farmworkers. Additionally, the EEOC determined that the employer subjected several female workers to unwanted touching and propositions for sex. The EEOC obtained $42,500 in total monetary relief for the female workers, substantial changes to policies and practices, and training for the employer’s management team. 

When efforts to combat systemic discrimination through voluntary compliance fail, litigation may be necessary to remedy and prevent future discrimination. In fiscal year 2022, the EEOC resolved 10 systemic suits, obtaining a total of just over $28 million for nearly 1,300 individuals and significant equitable relief. As an example, in EEOC v. American Freight Management Co., LLC, No. 2:19-cv-00273 (N.D. Ala. Feb. 2, 2022), the EEOC alleged that since at least 2013, an operator of approximately 150 furniture stores refused to hire female applicants for sales and warehouse jobs nationwide because of sex. Labor market data showed statistically significant underrepresentation of women in sales and warehouse positions. Corporate officials told hiring managers not to hire women because they “complain and make trouble” and distract male employees. The 3-year consent decree provides $5 million to approximately 500 aggrieved individuals, priority hiring for women denied jobs due to the unlawful employment practices, hiring goals to increase the percentage of women hired to the level of defendant’s applicant flow, and the appointment of a Title VII coordinator to ensure compliance with the decree.

The EEOC also filed 13 new systemic lawsuits in fiscal year 2022. The allegations in these lawsuits involved claims of failure to accommodate and discharge based on religion and disability; hiring and/or assignment claims based on race and/or national origin; hiring and/or assignment claims based on sex; hiring claims based on age; systemic harassment; and unequal pay based on sex.

3. Advancing Racial Justice

Over the past five fiscal years, approximately one-third of all charges filed with the agency have alleged some form of racial discrimination. As the primary federal agency that enforces laws against employment discrimination, the EEOC continued to play a key role in promoting racial justice and equity in the workplace during fiscal year 2022.

In fiscal year 2022, the EEOC successfully conciliated a systemic investigation after finding evidence of egregious racial harassment, which included racial epithets, graffiti, and nooses in the workplace, as well as disparate discipline, racial steering, and workplace segregation. The EEOC resolved the case for $1.8 million for the victims and injunctive relief to prevent the recurrence of race discrimination at this workplace. The EEOC also resolved a systemic investigation against 12 subcontractors in the construction industry who were accused of egregious racial harassment on one very large construction site. EEOC obtained $1.3 million in monetary relief for the 75 aggrieved individuals and extensive injunctive relief to prevent future harassment. Additionally, the EEOC successfully conciliated a race discrimination case in which a supervisor made racially inappropriate and disparaging comments to a Black employee. The case resolved for $300,000 for the charging party, and the company agreed to review and revise its non-discrimination policy, disseminate their annual employee survey, and provide diversity training to its workforce.

When efforts to combat racial discrimination through voluntary compliance fail, litigation may be necessary to remedy and prevent future discrimination. In fiscal year 2022, the EEOC resolved 18 lawsuits alleging race or national origin discrimination for nearly $4.6 million in monetary relief benefiting 298 individuals, including 4 systemic cases. Asone example, in EEOC v. Plains Pipeline, L.P., Plains All American GP, LLC, Plains Marketing, L.P., and Copperhead Pipeline and Construction, Inc., No. 7:2020-cv-00082 (W.D. Tex. Aug. 5, 2022), the EEOC alleged that four national companies that built and maintained gas pipelines in New Mexico and Texas subjected the six charging parties and other male employees to a hostile work environment based on race and national origin (Black, Hispanic, White, Native American, and bi-racial), sex (male), and to retaliation. A lead foreman/supervisor at their worksite repeatedly used the n-word, the terms “wetback,” “sp*c,” “redskin,” “wagon burner,” “white boy,” and “cracker,” and made sexually suggestive requests and comments. The supervisor also subjected individuals to physical abuse and threats of physical violence and unwanted sexual touching. Charging parties and others repeatedly complained about the harassment, but defendants did not remedy the situation. Defendants discharged individuals because of their complaints, because they refused to work with the foreman, and because of their association with the charging parties. Defendants also contacted prospective employers of some claimants and threatened to cease doing business with the entities if they hired the claimants. The EEOC obtained a 3-year consent decree in this case, which provides $1.75 million to the class of 16 individuals.

In fiscal year 2022, the agency also resolved EEOC v. Chicago Meat Auth., Inc., No. 18-cv-1357 (N.D. Ill. Oct. 7, 2021). In this case, the EEOC alleged that, since at least 2012, a meat processor, packager, and shipper, failed to hire Black applicants because of their race, used recruitment and hiring practices that had a disparate impact on African Americans, and subjected Black employees to racial harassment. The suit also alleged that defendant terminated a Black employee because of his race and in retaliation for his complaints about race harassment. Analysis of defendant’s hiring and employment data showed a statistically significant shortfall of Black employees in butcher, operative and labor positions where Hispanic workers were overrepresented. Defendant relied on word-of-mouth referrals and job advertisements on Spanish-language radio, which had a disparate impact on Black applicants. Black employees were subject to racial harassment, including use of the n-word, which defendant failed to correct despite having notice. The 3-year consent decree provides for $1.1 million to about 93 rejected Black applicants and employees subject to racial harassment and establishes hiring goals for African Americans for both general labor and skilled labor positions. The consent decree also provides monetary relief to the employee terminated in retaliation for his complaints. In fiscal year 2022, the EEOC also filed 2 new systemic cases involving failure to recruit, refer, and hire; one based solely on race and the other based on race and national origin. 

Race also remains among the most alleged protected bases in federal sector discrimination complaints. During fiscal year 2022, the EEOC received approximately 1,427 hearing requests involving race as a basis of discrimination. During the same period, the EEOC’s federal sector received 1,097 appeals that alleged discrimination based on race/Black. The EEOC’s federal sector hearings and appeals programs remain committed to eradicating race discrimination and all other forms of employment discrimination.

During fiscal year 2022, through education and outreach, the EEOC continued to play a pivotal role in promoting racial justice and confronting systemic barriers in the workplace. For example, the EEOC conducted: 468 race and color outreach events reaching 52,675 attendees; 27 Tribal outreach events reaching 1,134 attendees; 279 Asian American and Pacific Islander outreach events reaching 12,213 attendees; 42 Historically Black Colleges and Universities (HBCU) outreach events reaching 1,741 attendees; and 73 outreach events focused on backlash due to race or religion reaching 10,303 attendees. The EEOC also partnered with advocacy groups to reach immigrant and farmworker communities, as well as communities where individuals are reluctant to come forward.

The EEOC also continued working with the White House Initiative on Asian Americans, Native Hawaiians, and Pacific Islanders (WHIAANHPI) Regional Network to coordinate interagency stakeholder events and listening sessions to promote equity and improve access to federal services for Asian Americans, Native Hawaiians, and Pacific Islanders. In fiscal year 2022, EEOC Regional Network participants partnered with WHIAANHPI to address safety, access to justice, and violence prevention for Asian American, Native Hawaiian, and Pacific Islander communities by preventing, addressing, and better tracking acts of hate and bias.

In fiscal year 2022, the EEOC-Fair Employment Practices Agencies (FEPA) and Tribal Employment Rights Office (TERO) Conferences included panel discussions on top issues that Native Americans and Alaska Natives face relative to employment, facilitated by a TERO Director and a distinguished panel of tribal members. In addition, the President and General Counsel of the Council for Tribal Employment Rights (CTER), an organization that represents the interests of tribes, presented at the TERO conference.

The EEOC also launched a Tribal Programs webpage on the agency’s external website, which provides information on the agency’s Tribal program, links to other pages on the website that assist users in locating information such as how to file a charge or locate a field office, and answers frequently asked questions about TEROs and their work with the EEOC.

In fiscal year 2022, the Training Institute conducted four workshops focused on advancing racial justice. One noteworthy 3-hour workshop – Second Chance Hiring & Racial Justice: Unlocking Opportunities – focused on hiring individuals with prior convictions. In addition, a presentation at the 25th Annual Examining Conflicts in Employment Laws (EXCEL) conference focused on combating anti-AAPI hate related to COVID-19.

The EEOC also continued to support Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,” by integrating the order into our partnership and outreach strategy. Through our state, local, tribal, federal, and advocacy group partnerships, we worked to advance equity in organizational policies and employment practices, and to reduce employment barriers for targeted underserved communities. Our district offices worked together hosting regional listening sessions and identified partnerships that allowed the agency to extend our reach into underserved communities. During these sessions, we increased awareness of fiscal year 2022 strategic partnership priorities, provided information, and shared upcoming virtual trainings.

In January 2022, the agency adopted an equity action plan, which focuses on systemic racial discrimination, advancing equity in the agency’s activities, and improving outreach and access to underserved communities. The plan accomplishes this by: 1) improving worker access to the EEOC’s charge filing process so that individuals in rural areas, with inflexible schedules or with limited digital resources can use EEOC services with greater ease, which will impact communities who are disproportionately Black, Hispanic and Native American; 2) engaging with a broad range of employers, researchers, and worker and civil rights organizations to support diversity, equity, inclusion and accessibility; 3) further developing the EEOC’s data collection and analysis to support effective enforcement of EEO laws and to empower individuals to exercise their rights under those laws; and 4) continuing to improve access to the EEOC’s resources for people whose primary language is not English or who have limited proficiency in reading or accessing digital resources.

4. Preventing and Remedying Retaliation

Retaliation continues to be a deeply entrenched problem in American workplaces. During fiscal year 2022, the EEOC continued its efforts under its joint initiative with the Department of Labor (DOL) and the National Labor Relations Board (NLRB) to raise awareness about retaliation issues when workers exercise their protected rights. As part of this initiative, the EEOC has been collaborating with DOL and NLRB to protect workers, educate the public and engage with employers, business organizations, labor organizations and civil rights groups. The agencies hosted an educational online dialogue entitled “Ending Retaliation, Securing Racial and Economic Justice in the Workplace” to discuss the impact of employer retaliation on workers, particularly low wage workers, who may also suffer racial discrimination in the workplace.  Over 3,000 viewers tuned in to the program.

During fiscal year 2022, the EEOC successfully conciliated a systemic investigation against a world-wide automotive supplier after finding evidence of discrimination based on sexual harassment and retaliation. The investigation revealed that several temporary female employees were subjected to egregious sexual harassment, and employees who opposed the sexual harassment were removed from their work assignments in retaliation for the opposition. The EEOC resolved the matter for $100,000. The employer also agreed to conduct training for all hourly and temporary workers at the facility where the harassment occurred, expand their anti-harassment policies to expressly state that temporary workers are covered by the policy, and conduct four climate studies on sexual harassment at the facility across the life of the agreement. The results of the studies will be reported to the EEOC on a semi-annual basis and state if any additional remedial measures are needed.

When efforts to combat retaliation through voluntary compliance fail, litigation may be necessary to remedy and prevent future retaliation and ensure that employees are not dissuaded from exercising their federally protected rights. In fiscal year 2022, the EEOC resolved 26 lawsuits in which retaliation was a basis. As one example, in EEOC v. Jivaro Professional Headhunters, LLC, No. 1:20-cv-00461 (D. Idaho June 14, 2022), the EEOC alleged that an employment recruiting firm retaliated against a former senior technical recruiter because she filed a charge with the EEOC. The charging party was hired in April 2018 and discharged in October of that year while on medical leave. In February 2019, the charging party filed an EEOC charge alleging denial of a disability accommodation and discharge due to disability. In April 2019, defendant provided false and misleading information about the charging party to a prospective employer, resulting in the loss of a contingent job offer. In July 2019, the EEOC issued a letter of determination finding reasonable cause on the allegations in charging party’s charge. On November 12, 2019, the recruiting firm filed a state court suit against the charging party alleging that by filing an EEOC charge, she had defamed the recruiting firm and breached a provision in her employment contract requiring that she bring discrimination claims immediately to the recruiting firm. The charging party filed a retaliation charge in December 2019, and after receiving the EEOC’s cause determination on that charge in April 2020, the firm dismissed its lawsuit against her. The 5-year consent decree provides for $125,000, enjoins ADA retaliation, requires the removal of all references to the EEOC’s suit from the charging party’s personnel file, and prohibits the employer from disclosing information relating to the charge or suit in response to requests from prospective employers, and requires the firm to hire an independent ADA consultant, issue and implement antidiscrimination policies, and provide annual trainings. In fiscal year 2022, the EEOC also filed 34 lawsuits in which retaliation was a basis.

Enforcement, outreach, education, and training are essential tools that the EEOC uses to prevent and remedy retaliation. During fiscal year 2022, the EEOC conducted 384 retaliation outreach events reaching 57,439 attendees. The EEOC’s State, Local, and Tribal Programs provided the agency’s retaliation outreach brochure and other outreach materials to all of our TERO partners and CTER for broad dissemination to tribes nationwide. The Training Institute also conducted several workshops and customer specific trainings about preventing workplace retaliation and best practices. Additionally, retaliation is a key topic addressed in both the private sector and federal sector courses on Respectful Workplaces for employees and Leading for Respect for managers and supervisors.

5. Enforcing Pay Equity

Although it has been almost 60 years since the Equal Pay Act and Title VII of the Civil Rights Act of 1964 outlawed pay discrimination, significant and unjustified pay disparities persist. While not all pay disparities result from discrimination, discrimination in promotions as well as other discriminatory factors such as race and gender segregation in jobs and assignments contribute to the problem. As significant pay disparities continue to persist for women and, in particular, many women of color, Native American and indigenous women, immigrants, and women with disabilities, the EEOC focuses on compensation systems and practices that discriminate on any protected basis, including sex.

In fiscal year 2022, the agency continued its important role of enforcing the prohibitions against pay discrimination. For example, the EEOC collaborated with OFCCP in an Equal Pay Act directed charge involving a class of female employees alleging discrimination in wages. During the investigation, OFCCP and the EEOC worked together, shared information, and conducted joint interviews of potential class members. As a result of this joint enforcement effort, the agencies obtained significant monetary and injunctive relief for the class including a salary increase for women in certain job classifications totaling $365,000, and policy changes to hiring, promotion, and compensation practices.

When efforts to combat wage discrimination through voluntary compliance fail, litigation may be necessary to remedy and prevent future discrimination. In fiscal year 2022, the EEOC filed six cases involving compensation discrimination, five of which alleged that women were paid lower than their male counterparts and one of which alleged that a man was paid lower wages than his female counterparts and his female successor. The EEOC filed a systemic wage case in EEOC v. Verona Area School District, No. 3:22-cv-39 (W.D. Wisc. Feb. 8, 2022), in which the EEOC alleged that a school district violated the Equal Pay Act by paying female special education teachers lower wages than a male special education teacher performing substantially equal work and by paying a female school psychologist less than a male school psychologist performing substantially equal work. 

The EEOC is equally committed to the enforcement of equal pay laws in federal sector employment. During fiscal year 2022, the EEOC received five requests for federal hearings and 154 federal appeals involving wage or compensation discrimination. The agency continues to monitor the filing of federal sector hearing requests and appeals associated with equal pay claims to identify potential systemic violations.

To ensure that workers understand their rights and that employers understand their responsibilities in this area, the EEOC conducted 192 pay equity events reaching 23,000 attendees in fiscal year 2022.The Training Institute also conducted three workshops addressing compliance with the Equal Pay Act and pay equity, and the EXCEL conference featured several sessions on pay equity. In fiscal year 2022, the EEOC also published an EEO Digest article entitled In Pursuit of Pay: Examining Barriers to Equal Pay, Intersectional Discrimination Theory, and Recent Pay Equity Initiatives.

6. Diversity, Equity, Inclusion and Accessibility

On June 25, 2021, President Biden issued Executive Order 14035, Diversity, Equity, Inclusion, and Accessibility in the Federal Workforce (EO 14035), which provides that the federal government, as the nation’s largest employer, will promote equal opportunity through diversity, equity, inclusion, and accessibility (DEIA) in the federal workforce. The Executive Order directs agencies to develop and implement a more comprehensive, integrated, and strategic focus on DEIA as key components of their strategies.

During fiscal year 2022, the EEOC played a vital role in assisting the White House with the implementation of EO 14035. The EEOC coordinated with the White House’s Domestic Policy Council (DPC), the Office of Management and Budget (OMB), and the Office of Personnel Management (OPM), in furtherance of EO 14035, including helping agencies conduct self-assessments, assisting with the development of the Governmentwide Strategic Plan called for by EO 14035, which was released in November 2021, conducting government-wide outreach, collaborating on the development of government-wide resources for an OMB Max website, and hosting weekly office hours and learning sessions to assist in agencies’ implementation of the EO.  

Additionally, the EEOC collaborated with DPC, OMB, and OPM to meet with Cabinet agencies and evaluate their DEIA strategic plans. The EEOC also contributed to two White House efforts to improve federal demographic data collection by updating the collection of race and ethnicity data and creating categories for sexual orientation and gender identity data. This effort started in fiscal year 2022 and will continue through fiscal year 2023. The White House team recognized the EEOC’s expertise in this area by inviting it to co-chair one of the four sub-groups for this effort. In September 2022, OPM, OMB, and EEOC jointly launched a new Chief Diversity Officers Executive Council to help implement and sustain a national strategy across the federal government. EEOC’s Chair serves as one of two Council Vice Chairs.

The EEOC’s own DEIA Strategic Plan, which was adopted in fiscal year 2022, lists the agency’s proposed goals and a strategy to implement the agency’s new DEIA program. The Plan is designed to achieve four overarching goals:

• Workforce Diversity. Recruit from a diverse, qualified group of potential applicants drawn from all segments of American society to secure and retain a high-performing workforce.
• Employee Equity. Create and ensure equal opportunity for all aspects of the employment life cycle.
• Inclusive Practices. Cultivate a culture that encourages collaboration, flexibility, and fairness to enable individuals to reach their full potential.
• Accessibility. Develop and maintain facilities, information and communication technology, programs, and services so that all EEOC employees can fully and independently use them to perform the essential functions of their work.

The creation, in fiscal year 2022, of the EEOC’s Office for Civil Rights, Diversity, and Inclusion (OCRDI) lays the foundation for the agency’s efforts to achieve these goals. The EEOC is committed to being an organization that seeks out and employs people with differing points of view, backgrounds, experiences, perspectives, and ideas. The creation of OCRDI demonstrates the agency’s commitment to becoming an organization that understands the importance of cognitive and identity diversity and intentional inclusion in driving innovation, through which it accomplishes its mission.

During fiscal year 2022, the EEOC also served on the implementing committee for EO 13988: Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation and provided technical assistance to agencies in furtherance of the National Security Memorandum: Revitalizing America’s Foreign Policy and National Security Workforce, Institutions, and Partnerships. Additionally, the EEOC provided consultation in support of EO 13985: Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, and EO 14075: Advancing Equality for Lesbian, Gay, Bisexual, Transgender, Queer, and Intersex Individuals.

The Training Institute’s annual EXCEL Conference included sessions focused on DEIA with a record number of 874 attendees from the private and federal sectors. The opening joint plenary session with EEOC Chair Charlotte Burrows, Kiran Ahuja, Director, Office of Personnel Management (OPM), and Jenny Yang, Director, Office of Federal Contract Compliance Programs (OFCCP), discussed the Biden Administration’s whole-of-government approach to equity and the future of work. They also highlighted the EEOC and OPM’s efforts to promote diversity, equity, inclusion, and accessibility in America’s workplaces. The conference featured presentations from DEIA experts across the country and included training sessions on various DEIA issues.

In January 2022, the EEOC and OFCCP launched the Hiring Initiative to Reimagine Equity (HIRE), a multi-year collaborative effort chaired by Chair Burrows and OFCCP Director Yang.  HIRE has engaged a broad array of stakeholders to expand access to good jobs for workers from underrepresented communities and help address key hiring and recruiting challenges as our nation makes major investments in our infrastructure and recovery. Since its launch, HIRE has hosted four virtual public roundtables to highlight barriers and promising practices on a variety of topics, including promoting racial equity in hiring and recruitment, reimagining equity for workers with gaps in employment history, promoting skills-based hiring to advance equal employment opportunity in the workplace, and utilizing automated technology systems, including artificial intelligence, in employment.  

7. Addressing the Use of Artificial Intelligence and Algorithmic Fairness in Employment Decisions

The EEOC recognizes that while artificial intelligence and other automated systems may offer new opportunities for employers, they also have the potential to discriminate. During fiscal year 2022, the EEOC built upon its Artificial Intelligence and Algorithmic Fairness Initiativeto ensure that the use of software, including artificial intelligence (AI), machine learning, and other emerging technologies used in hiring and other employment decisions comply with the federal civil rights laws that the EEOC enforces.

In fiscal year 2022, some of the EEOC’s accomplishment in this area included:

• Providing AI training to systemic enforcement teams in the EEOC’s field offices;
• Issuing technical assistance, including The Americans With Disabilities Act and the Use of Software, Algorithms, and Artificial Intelligence to Assess Job Applicants and Employees, and a shorter companion document focused on the rights of workers – Tips for Workers: the Americans with Disabilities Act and the Use of Software, Algorithms, and Artificial Intelligence; 
• Holding listening sessions and meetings with key stakeholders about algorithmic tools and their employment ramifications;
• Issuing an educational video in American Sign Language on the use of artificial intelligence in making job decisions for people with disabilities; and
• Hosting a virtual roundtable on the potential barriers automated technologies present to diversity, equity, inclusion, and accessibility.

In fiscal year 2022, the EEOC also filed one lawsuit with this new technology at the forefront. In EEOC v. iTutor Group, Inc.; Tutor Group Limited; and Shanghai Ping’ an Intelligent Education Technology Co., Ltd., No. 1:22-cv-2565 (E.D.N.Y. May 5, 2022), the EEOC alleged that providers of English-language tutoring services to students in China, programmed their software to automatically reject female applicants over the age of 55 and male applicants over the age of 65. The EEOC alleged that the defendants failed to hire the charging party and more than 200 other qualified tutor applicants age 55 and older because of their age.

To ensure small businesses, vulnerable workers, and underserved communities understand that the use of software, including AI, machine learning, and other emerging technologies used in hiring and other employment decisions must comply with EEO laws, the EEOC hosted 24 AI and algorithmic fairness outreach events reaching 1,192 attendees. The Training Institute also conducted two well-attended workshops to educate employers about the risks associated with AI in the workplace. Additionally, the EXCEL conference featured a session on Equitable Artificial Intelligence in the Workplace. Through the engagement of outside experts, State, Local, and Tribal Programs also held a panel discussion on the topic of Artificial Intelligence and Algorithmic Fairness at the 2022 EEOC-FEPA Conference.

LOOKING FORWARD

The EEOC will continue to embrace and leverage technology to improve our services and upgrade the agency’s ability to deliver greater access to data, enhance transparency, and augment the use of modern analytics to drive decision making.

The EEOC will also continue to focus on efforts to modernize our digital systems to build upon our ability to prevent and remedy unlawful employment discrimination, as well as other technological enhancements necessary to improve the quality of services to the public.

In early 2020, the Technology Modernization Fund (TMF) Board provided the EEOC with an initial tranche of $2 million to modernize the legacy technology and data structure of our 22-year-old Integrated Mission System (IMS). For the last two years, the agency worked to define and build a modern solution to transform its private sector processes and the accompanying processes for its Fair Employment Practices Agency (FEPA) partners. This effort included evaluating, cleansing, and transforming more than 30 years of EEOC and FEPA data from legacy systems. In January 2022, the new ARC system went live for 145 EEOC and FEPA offices and more than 2,000 users. During its first nine months in operation, more than 163,000 inquiries were received in ARC and the field offices resolved nearly 52,000 charges using the new system. Having met the milestones outlined in the agreement with the TMF, the agency received its second, and final, tranche of TMF funding in mid-2022, supporting the remaining two domains that will be serviced by ARC – federal sector and litigation services.

During fiscal year 2022, the agency transitioned its data-communication services and cloud services from the legacy GSA Networx contract to its modernized Enterprise Infrastructure Solutions contract. This migration brought with it significant cost savings which are being reinvested into expanded Internet bandwidth and improved network security. In addition, the EEOC transitioned its telecommunications services to a unified communications platform, saving the agency approximately $1.2 million in operational costs annually.

In fiscal year 2023, the EEOC will focus on enhancing its intake process for stakeholders.  We will convene an Intake Workgroup, comprised of staff from the Office of Field Programs, the Office of Information Technology, the Intake Information Group, and field staff. The workgroup will evaluate and identify strategies to increase efficiencies related to the agency’s private sector intake and charge receipt process. 

The EEOC will also continue to strengthen, strategically target, and develop outreach programs to engage with our many different audiences including underserved communities, advocacy groups, and small businesses. Education, training, and technical assistance are cost effective tools that promote understanding and voluntary compliance with EEO laws. One of the primary goals of outreach is to prevent employment discrimination before it occurs. The EEOC will continue to use a variety of methods, depending on the specific audience, to conduct outreach, education, and training.

FINANCIAL HIGHLIGHTS

The OMB Circular Number A-136 Revised, dated June 3, 2022, was used as guidance for the preparation of the accompanying financial statements. The EEOC prepares four financial statements: Consolidated Balance Sheets, Consolidated Statements of Net Cost, Consolidated Statements of Changes in Net Position, and the Combined Statements of Budgetary Resources.

Consolidated Balance Sheets

The Consolidated Balance Sheets present amounts that are owned or managed by the EEOC (assets); amounts owed (liabilities); and the net position of the agency divided between the cumulative results of operations and unexpended appropriations.

The EEOC’s balance sheets show total assets of $106 million at the end of fiscal year 2022 and $107 million at the end of fiscal year 2021.

The Net Position is the sum of Unexpended Appropriations and the Cumulative Results of Operations. The EEOC’s Net Position on its Balance Sheets and the Statement of Changes in Net Position show $32 million at the end of fiscal year 2022 and $28 million at the end of fiscal year 2021.

Consolidated Statements of Net Cost

The Consolidated Statements of Net Cost presents the gross cost incurred by all programs less any revenue earned. Overall, in fiscal year 2022, the EEOC’s Consolidated Statements of Net Cost of Operations increased by $21 million.

Consolidated Statement of Changes in Net Position

The Consolidated Statement of Changes in Net Position represent the change in the net position for fiscal year 2022 and fiscal year 2021 from the cost of operations, appropriations received and used and the financing of some costs by other government agencies. The Consolidated Statement of Changes in Net Position increased by $4 million for fiscal year 2022 when compared to fiscal year 2021.

Combined Statements of Budgetary Resources

The Combined Statements of Budgetary Resources shows how budgetary resources were made available and the status of those resources at the end of the fiscal year. In fiscal year 2022, the EEOC received $420 million in budget authority. The EEOC ended fiscal year 2022 with an increase of $27million in total budgetary resources. Resources not available for new obligations at the end of the year totaled $10 million and $7 million in fiscal year 2022 and fiscal year 2021, respectively. The unobligated balance not available represents expired budget authority from prior years that are no longer available for new obligations.

Use of Resources

The pie chart displays the EEOC’s fiscal year 2022 use of resources by major object class. The chart below shows costs actually incurred by the EEOC. It does not include costs incurred by others on behalf of the EEOC. The chart shows that Pay and Benefits, State & Local, Rent to GSA and Other Contractual Services consumed 98% of the EEOC’s resources, and other expenses (e.g., communication, utilities & miscellaneous charges, travel & transportation, supplies & materials, etc.) consumed 2% of the EEOC’s resources for fiscal year 2022.

The dual axis chart below depicts the EEOC’s compensation and benefits versus full-time equivalents (FTE) over the past six years. The EEOC ended fiscal year 2022 with 2,041 FTEs, a net increase of 114, or 6%, above fiscal year 2021.

Limitations of the Financial Statements

The principal financial statements are prepared to report the financial position, financial condition, and results of operations, pursuant to the requirements of 31 U.S.C. § 3515(b). The statements are prepared from records of Federal entities in accordance with Federal generally accepted accounting principles (GAAP) and the formats prescribed by OMB. Reports used to monitor and control budgetary resources are prepared from the same records. Users of the statements are advised that the statements are for a component of the U.S. Government.

MANAGEMENT ASSURANCES

The EEOC's internal controls and financial management systems were sound during fiscal year (FY) 2022. Based on the actions taken, and considering the agency’s controls environment as a whole, the agency concludes that during FY 2022, its financial and internal controls systems were in compliance with the Federal Managers’ Financial Integrity Act (FMFIA). Controls systems were effective; agency resources were used in a manner that was consistent with the EEOC’s mission and in compliance with applicable laws and regulations; and there was minimal potential for waste, fraud, and mismanagement of resources.

There were 12 financial non-conformances that were not fully corrected during FY 2022. These financial non-conformances were identified in several audit reports prepared by the OIG or prepared for the OIG by Harper, Rains, Knight & Company: FY 2021 Annual Report on EEOC’s Compliance with the Payment Integrity Information Act of 2019 (PIIA), (OIG Report No. 2022-001-AOIG0), July 11, 2022; Transmittal of Management Letter for Audit of the US EEOC’s FY 2021 Financial Statements (OIG Report No. 2021-005-AOIG), January 19, 2022; Performance Audit Report on the EEOC Charge Card Program FYRs 2019 and 2020 (OIG Report No. 2020-004-AOIG), March 24, 2021; Audit of Equal Employment Opportunity Commission’s Fiscal Year 2020 Financial Statements (OIG Report No. 2020-001-AOIG), November 12, 2020; Audit of Equal Employment Opportunity Commission’s Fiscal Year 2019 Financial Statements (OIG Report No. 2019-002-AOIG), November 19, 2019; and Performance Audit Report on the EEOC Charge Card Program FYRs 2018 and 2017 (OIG Report No. 2018-007-AOIG), May 31, 2019.  The agency will continue its work to resolve these matters during FY 2023.

The EEOC’s management is also responsible for establishing and maintaining effective internal control over financial reporting, which includes safeguarding of assets and compliance with applicable laws and regulations. The EEOC conducted its assessment of the effectiveness of the agency’s internal control over financial reporting in accordance with OMB Circular No. A-123, Management's Responsibility for Enterprise Risk Management and Internal Control. Based on the results of this evaluation, the EEOC can provide reasonable assurance that its internal control over the effectiveness and efficiency of operations and compliance with applicable laws and regulations as of September 30, 2022, was operating effectively, and no material weaknesses were found in the design or operation of the internal controls.

 

___________________
Charlotte A. Burrows
Chair
November 15, 2022

 

LEGAL COMPLIANCE

EEOC maintained controls for and compliance with the Anti-Deficiency Act, the Debt Collection Act of 1996, as amended, the Prompt Payment Act, Federal Information Security Modernization Act of 2014, Pay and Allowance System for Civilian Employees, the Government Charge Card Abuse Prevention Act of 2012, Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, the Digital Accountability and Transparency Act of 2014 (DATA Act), and the Fraud Reduction and Data Analytics Act of 2015. 

 

Financial Section

LETTER FROM THE INSPECTOR GENERAL TRANSMITTING AUDIT

November 14, 2022

 

 

MEMORANDUM

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Harper, Rains, Knight & Company, P.A. (HRK) to audit the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal years ended September 30, 2022 and 2021, and to report on EEOC's internal controls over financial reporting, and compliance with laws, regulations, contracts, and other matters. The contract required that HRK conduct the audit in accordance with U.S. generally accepted government auditing standards (GAGAS) contained in Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) audit guidance, and U.S. Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency Financial Audit Manual.

In its audit of EEOC, HRK reported:

• EEOC's financial statements present fairly, in all material respects, EEOC's financial position as of September 30, 2022 and 2021, and its net cost of operations, changes in net position, and budgetary resources for the fiscal years then ended, in accordance with accounting principles generally accepted in the United States of America;
• they did not identify any deficiencies in internal control over financial reporting that they consider to be material weaknesses. However, material weaknesses may exist that have not been identified; and
• their tests for compliance with selected provisions of applicable laws, regulations, and contracts disclosed no instances of noncompliance for fiscal year 2022 that would be reportable under GAGAS or OMB Bulletin 22-01, Audit Requirements for Federal Financial Statements.

HRK is responsible for the opinion on the attached auditor’s report dated November 10, 2022, and the conclusions expressed in the report. We do not express an opinion on EEOC’s financial statements or conclusions on internal control over financial reporting or on compliance and other matters. EEOC management was given the opportunity to review the draft report and to provide comments.

OMB issued Circular Number A-50, Audit Follow-up, to ensure that corrective action on audit findings and recommendations proceed as rapidly as possible. EEOC Order 192.002, Audit Follow-Up Program, implements Circular Number A-50 and requires that for resolved recommendations, a corrective action work plan should be submitted within 30 days of the final audit report date describing specific tasks and completion dates necessary to implement audit recommendations. Circular Number A-50 requires prompt resolution and corrective action on audit recommendations. Resolutions should be made within six months of final report issuance.

 

Attachment

 

cc:      

Cynthia Pierre
Chief Operating Officer

Brett Brenner
Acting Deputy Chief Operating Officer

Elisa Krobot
Chief Financial Officer

Kevin Richardson
Chief Human Capital Officer

Carlton Hadden
Director, Office of Federal Operations

Chris Haffer
Director, Office of Enterprise and Data Analytics

Bryan Burnett
Chief Information Officer

Delner Franklin-Thomas
Acting Director, Office of Field Programs

Jacinta Ma
Director, Office of Communications and Legislative Affairs

Gwendolyn Young Reams
Acting General Counsel

Donnie Landon
Audit Follow-Up Coordinator

 

INDEPENDENT AUDITORS' REPORT

 

 

Acting Inspector General
U.S. Equal Employment Opportunity Commission

Report on the Audit of the Financial Statements

Opinion

In accordance with the Accountability of Tax Dollars Act (ATDA), we have audited the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC). EEOC's financial statements comprise the consolidated balance sheets as of September 30, 2022, and 2021, and the related consolidated statements of net cost and changes in net position, and combined statements of budgetary resources for the fiscal years then ended, and the related notes to the financial statements.

In our opinion, EEOC's financial statements present fairly, in all material respects, EEOC's financial position as of September 30, 2022, and 2021, and its net cost of operations, changes in net position, and budgetary resources for the fiscal years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Office of Management and Budget (OMB) Bulletin No. 22-01, Audit Requirements for Federal Financial Statements. Our responsibilities under those standards and OMB Bulletin No. 22-01 are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of EEOC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

EEOC's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; preparing, measuring, and presenting the Required Supplementary Information (RSI) in accordance with accounting principles generally accepted in the United States of America; preparing and presenting other information included in documents containing the audited financial statements and auditors' report, and ensuring the consistency of that information with the audited financial statements and the RSI; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement or a material weakness when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, Government Auditing Standards, and OMB Bulletin No. 22-01, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of EEOC's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Perform other procedures we consider necessary in the circumstances.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America issued by the Federal Accounting Standards Advisory Board (FASAB) require that the information in the Management's Discussion and Analysis be presented to supplement the financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by FASAB who considers this information to be an essential part of financial reporting for placing the financial statements in appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the RSI and comparing the information for consistency with management's responses to the auditors' inquiries, the financial statements, and other knowledge we obtained during the audit of the financial statements, in order to report omissions or material departures from FASAB guidelines, if any, identified by these limited procedures. We did not audit, and we do not express an opinion or provide any assurance on the RSI because the limited procedures we applied do not provide sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audits were conducted for the purpose of forming an opinion on EEOC's financial statements. The information in the Message from the Chair and Other Information section contains a wide range of information, some of which is not directly related to the financial statements. This information is presented for purposes of additional analysis and is not a required part of the financial statements or the RSI. Our opinion on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audits of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to me materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

Report on Internal Control over Financial Reporting

In planning and performing our audit of EEOC's financial statements as of and for the year ended September 30, 2022, in accordance with government auditing standards generally accepted in the United States of America (GAGAS), we considered EEOC's internal control relevant to the financial statement audit as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of EEOC's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of EEOC's internal control over financial reporting. We are required to report all deficiencies that are considered to be significant deficiencies or material weaknesses. We did not consider all internal controls relevant to operating objectives, such as those controls relevant to preparing performance information and ensuring efficient operations.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described above, and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies or to express an opinion on the effectiveness of EEOC's internal control over financial reporting. Given these limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting that we considered to be material weaknesses. However, material weaknesses and significant deficiencies may exist that have not been identified.

 

 

Report on Internal Control over Financial Reporting (continued)

An entity's internal control over financial reporting is a process effected by those charged with governance, management, and other personnel, the objectives of which are to provide reasonable assurance that (1) transactions are properly recorded, processed, and summarized to permit the preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and assets are safeguarded against loss from unauthorized acquisition, use, or disposition, and (2) transactions are executed in accordance with provisions of applicable laws, including those governing the use of budget authority, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and correct, misstatements due to fraud or error.

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

As part of obtaining reasonable assurance about whether EEOC's financial statements are free from material misstatement, we performed tests of its compliance with selected provisions of applicable laws, regulations, contracts, and grant agreements, that have a direct effect on the determination of material amounts and disclosures in EEOC's financial statements, and to perform certain other limited procedures, but not for the purposes of expressing an opinion on EEOC's compliance with applicable laws, regulations, contracts, and grant agreements. Accordingly, we do not express such an opinion. We did not test compliance with all laws, regulations, contracts, and grant agreements applicable to EEOC. EEOC management is responsible for complying with laws, regulations, contracts, and grant agreements applicable to the entity.

Our tests of compliance with these selected provisions of applicable laws, regulations, and contracts, and grant agreements disclosed no instances of noncompliance for the year ended September 30, 2022, that would be reportable under Government Auditing Standards or OMB Bulletin No. 22-01. We caution that noncompliance may occur and not be detected by these tests.

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication described in the Other Reporting Required by Government Auditing Standards is solely to describe the scope of our testing of internal control and compliance with selected provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that testing, and not to provide an opinion on the effectiveness of EEOC's internal control or compliance. These reports are an integral part of an audit performed in accordance with Government Auditing Standards and OMB Bulletin No. 22-01 in considering the entity's internal control and compliance. Accordingly, these reports are not suitable for any other purpose.

 

November 10, 2022
Washington, DC

 

INSPECTOR GENERAL'S STATEMENT ON MANAGEMENT CHALLENGES