How This Report Is Organized

The Fiscal Year 2021 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, as well as the EEOC’s operational highlights for fiscal year 2021. 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

Fiscal Year 2021 Performance Highlights

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

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

Fraud Reduction Report

Civil Monetary Penalty Adjustments for Inflation

Appendix A: Organization and Laws Enforced

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

Appendix C: Glossary of Acronyms

Appendix D: Internet Links

Appendix E: EEOC Field Offices

Appendix F: Revolving Fund

We Welcome Your Comments

 

Message from the Chair

I am pleased to present the U.S. Equal Employment Opportunity Commission’s (EEOC) Agency Financial Report (AFR) for fiscal year (FY) 2021.  I was sworn in as Chair of the EEOC in January 2021, and 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. Established by the Civil Rights Act of 1964, the agency first opened its doors the following year with a simple mission — to prevent and remedy discrimination in our nation’s workplaces. Since then, America has made great progress toward that goal, but history shows that we cannot take this progress for granted. Promoting equal employment opportunity and enforcing the nation’s federal workplace anti-discrimination laws remains as necessary as ever. We must continue to work toward an America where all have a fair chance to work, provide for their families, and contribute to our economy. The EEOC is firmly committed to this goal and will continue to build on its proud legacy of civil rights accomplishments to achieve it.

As the primary federal agency that enforces laws against employment discrimination, the EEOC continued to play a critical role in FY 2021 in advancing equal opportunity in the workplace. As detailed in this report, during the past fiscal year the agency renewed its focus on tackling systemic discrimination in all forms and on all bases, including promoting racial justice and equity in the workplace, preventing and remedying discrimination in pay, and addressing the civil rights impact of the COVID-19 pandemic.

The EEOC has numerous tools to combat discrimination, including outreach, technical assistance, and enforcement, and the agency used all of them during FY 2021 to achieve change on a broad scale. As a result, as detailed in this report, despite the challenges created by the pandemic, the agency made significant accomplishments in each of these priority areas.

The successes of FY 2021 were in part made possible through efforts to rebuild and strengthen the agency. Early in my tenure in FY 2021, I authorized the hiring of more than 450 predominately front-line positions (investigators, mediators, attorneys, and administrative staff, among other positions) to help restore our ability to fulfill the agency’s vital role in preventing and remedying employment discrimination. The addition of these new employees in mission-critical positions is a down payment on what I hope will be a long-term investment to ensure that the EEOC has resources commensurate with its task.

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
November 15, 2021

 

MANAGEMENT DISCUSSION AND ANALYSIS 

The Equal Employment Opportunity Commission’s 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 the Office of Management and Budget (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 2022. Both reports will be available at https://www.eeoc.gov/budget-and-performance.

Mission, Major Programs, and Organizational Structure

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, national origin, religion, and sex.  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 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.

*EEOC’s previous General Counsel Sharon Fast Gustafson left the agency in March 2021. Gwendolyn Young Reams was named acting General Counsel on March 12, 2021. 

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 E.

PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

Fiscal Year 2021 Performance Highlights

The EEOC’s Strategic Plan establishes a framework for achieving the EEOC’s mission to "Prevent and remedy unlawful employment discrimination and advance equal opportunity for all in the workplace," so that the nation may achieve the Commission’s vision of "Respectful and inclusive workplaces, with equal employment opportunity for all.” Below are some of our performance highlights in achieving the agency’s strategic objectives for fiscal year 2021.

The EEOC continued to successfully combat and prevent employment discrimination through the strategic enforcement of laws within our jurisdiction by:

• Using administrative enforcement and litigation to promote broad compliance with federal workplace anti-discrimination laws, including:
  • Securing more than $484 million for victims of discrimination, including:        
    • Approximately $350.7 million for 11,067 victims of employment discrimination in the private sector and state and local government workplaces through mediation, conciliation, and settlements.
    • $34 million for 1,920 individuals as a direct result of litigation resolutions.  
    • More than $100 million for 2,169 federal employees and applicants.
  • Successfully resolving 41.1% of conciliations.
    • Among the successful conciliations, 55.7% involved one or more Strategic Enforcement Plan priority areas.
  • Filing 116 lawsuits including 74 suits on behalf of individuals, 29 non-systemic suits with multiple victims, and 13 systemic suits involving multiple victims or discriminatory policies.
    • Among the lawsuits filed by the EEOC in fiscal year 2021, 77 involved one or more Strategic Enforcement Plan priority areas. 
  • Resolving 138 lawsuits and achieving favorable results in approximately 96% of all federal district court resolutions.&nbsFRp;
  • Continuing to build on our successful mediation program, including:
    • Conducting 6,644 successful mediations resulting in $176.6 million in benefits to charging parties.
    • Conducting 639 federal sector mediations resulting in close to $8.4 million for federal employees and applicants.
  • Resolving 9,082 federal sector hearings requests and securing almost $90 million in relief for federal employees through the EEOC’s hearings program.
  • Resolving 4,172 federal sector appeals.   
    • EEOC continued its significant resolution of appeals addressing the merits of employees’ discrimination claims, including 99 findings of discrimination in fiscal year 2021.
    • Securing over $10.9 million in monetary relief as ordered in EEOC’s federal appellate decisions. 
    • Among the decisions issued by the EEOC in fiscal year 2021, 83 were identified as implicating one or more Strategic Enforcement Plan priorities, including numerous decisions addressing equal pay or other wage discrimination issues. 
• Ensuring that federal and private sector complaints and charges are handled promptly and efficiently by:
  • Managing the inventory of pending private sector charges with 42,811 charges pending at the end of the fiscal year, which was a slight increase of 2.0% over last year’s inventory.
    • In fiscal year 2021, this included handling more than 383,500 calls from the public through the agency contact center. The contact center also handled more than 52,000 emails, which reflects an increase of almost 40% compared with fiscal year 2020. 
  • Reducing the federal sector hearings inventory for the fourth consecutive year, achieving a reduction of 6.2% in fiscal year 2021, with 10,225 hearings pending at the end of the fiscal year.
  • Reducing the number of federal sector appeals that were more than 500 days old, ending the year with 60 such appeals. 
• Upgrading the Commission’s data collection, analysis, and reporting capabilities, which will enable the agency to use modern data analytics to facilitate data-driven decision making, including:
  • Creating new data visualizations to illustrate employment discrimination data in a simple, comprehensible, and visually appealing way.
  • Launching EEOC Explore, a web-enabled, state-of-the-art, user-friendly, data query and mapping tool, to promote transparency, facilitate access, and encourage greater use of EEOC’s publicly available data.
  • Launching the federal Annual Report Dashboard on the EEOC website, which reports agency-level federal sector complaint data.  It allows the user to view key complaint data from EEOC’s Statistical Report of Discrimination, including counseling, complaints, investigations, closures and costs, and ADR.

The EEOC made significant efforts to prevent employment discrimination and promote inclusive workplaces through education and outreach in the following ways:

• Conducting more than 2,325 outreach events and providing more than 254,830 individuals nationwide with information about employment discrimination and their rights and responsibilities in the workplace, including:
  • Delivering nearly 400 federal sector outreach, education, and training events, and providing more than 17,119 federal sector employees and equal employment opportunity (EEO) professionals with information about employment discrimination and their rights and responsibilities in the workplace.
• Addressing the intersection of COVID-19 and federal employment discrimination laws, including conducting 313 outreach events related to COVID-19 that reached 39,827 individuals.
• Holding the Commission’s first-ever, all virtual public hearing by videoconference to explore the workplace civil rights implications of the COVID-19 pandemic.  Over 2,000 members of the public tuned in to hear testimony from a wide range of experts about how the pandemic is harming already vulnerable populations.
• Conducting listening sessions, trainings, and meetings on the rights of LGBTQ+ individuals to be free from employment discrimination, including hosting 186 outreach events related to LGBTQ+ matters, which reached 19,208 individuals.
• Prioritizing outreach to vulnerable workers and developing and enhancing partnerships with organizations that work with vulnerable workers, including:
  • Conducting over 649 outreach events for vulnerable workers and reaching over 71,024 individuals.
  • Collaborating with partner organizations to extend our reach and better serve vulnerable workers and underserved communities, which included conducting over 1,103 partnership events reaching 105,943 attendees. 
  • Enhancing EEOC’s ability to identify and reach vulnerable or underserved populations with the use of an enhanced visualization tool that allows field offices to obtain demographic data by county.
• Prioritizing outreach to the small business community, including:
  • Conducting 460 outreach events for small businesses.
  • Promoting the online Small Business Resource Center to provide a one-stop shop to help small businesses easily access information about employer responsibilities.
  • Receiving an “A” rating in the Small Business Administration Ombudsman's report to Congress for fiscal year 2019, which was published in fiscal year 2021, for responsiveness to small business concerns. The report also highlighted EEOC’s non-retaliation policy as an example of an effective policy.  

The EEOC worked to achieve organizational excellence by: 

• Modernizing agency data collections and data dissemination activity to align with the Federal Data Lifecycle Framework and ensure compliance with the provisions of Title VII of the Civil Rights Act of 1964, Paperwork Reduction Act (PRA), Information Quality Act (IQA), Foundations for Evidence-Based Policymaking Act (Evidence Act), Confidential Information Protection and Statistical Efficiency Act (CIPSEA), and Federal Information Security Modernization Act (FISMA).
• Implementing various recruitment strategies to overcome historical recruiting challenges to ensure diversity and inclusion in selections, and identify key competencies for positions, such as extending the U.S. Peace Corps eligibility.  
• Streamlining the recruitment process to improve time-to-hire rates. As of September 30, 2021, the agency hired 450 backfills and new employees, and all of the hires were made within the 78-day deadline.           
• Continuing to recruit, employ, retain, and advance disabled veterans, with an added emphasis on veterans with a 30% or more disability, in adherence to 5 CFR § 720.304(a)(1) and OPM guidance.
• Negotiating a Re-Entry Guidelines Memorandum of Understanding (MOU) and Re-Entry Plan MOU for Headquarters and Field Offices with Local No. 216 concerning re-opening of offices during the COVID-19 pandemic and procedures for involving Local No. 216 once re-entry plans are developed.

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 A-11 from the Office of Management and Budget (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 for Fiscal Years 2018-2022 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. We will continue efforts to ensure the accuracy of program information and analysis of the information.

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

Recent implementation of the Federal Sector EEO Portal that enables all federal agencies to electronically submit annual equal employment opportunity statistics (EEOC Form 462 and MD-715) continues to improve the quality and timeliness of the information received electronically. We continue to improve the collection and validation of information for our Integrated Mission System (IMS), which consolidates our program data on charge intake, investigation, mediation, litigation, and outreach functions into a single shared information system. IMS includes many automated edit checks and rules to enhance data integrity. We are working closely with the EEOC’s Office of Information Technology (OIT) to prepare for the transition from IMS to the Agency Records Center (ARC) system early in fiscal year 2022.  We have identified many areas where we will be able to further improve our current processes when the new system is implemented. Because several performance measures require data to assess our achievements, it is significant that we can now obtain this data much more quickly and with greater data accuracy.

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 assure 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 objectives and performance goals detailed in the EEOC’s Strategic Plan for Fiscal Years 2018 – 2022 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 2021, the agency continued its work on the following evaluation projects:  The Interagency Agreement (IAA) between the EEOC and The Committee on National Statistics (CNSTAT) of the National Academies of Sciences, Engineering, and Medicine 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.

The Interagency Agreement (IAA) between the EEOC and The Committee on National Statistics (CNSTAT) of the National Academies of Sciences, Engineering, and Medicine 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. CNSTAT is examining the EEOC’s historic collection of employer compensation data for 2017 and 2018. The EEOC’s large scale collection of pay information from private employers and federal contractors between July 15, 2019 and February 14, 2020 affords an opportunity to review the methods used and the circumstances of the collection, document lessons learned, and identify ways to improve future collections. CNSTAT has assembled a distinguished panel of experts to examine the pay data collection and make recommendations regarding its uses as well as suggestions for enhancing future collection of pay data.

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. Due to the pandemic, the mediation program has conducted only telephone or video mediations since March 2020, a departure from the in-person model implemented in 1999. In fiscal year 2021, the project was expanded to include 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.

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.

 

In fiscal year 2021, the EEOC’s ability to make progress on our strategic objectives depended on the agency continuing to adapt to the challenges presented by the COVID-19 pandemic while continuing to effectively prevent and remedy employment discrimination. Through the adoption of agency-wide telework in March 2020, the agency was able to continue enforcing the nation’s employment anti-discrimination laws while taking measures to keep the public and employees safe. Despite the challenges of the pandemic, the EEOC was able to effectively manage the private and federal sector workloads, continue to prevent and remedy unlawful employment discrimination, and advance equal opportunity in the workplace.

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 2021, the agency continued to expand its legacy of civil rights accomplishments.

• Rebuilding and 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 — including the ongoing civil rights impact of the COVID-19 pandemic, racial justice, pay equity, and implementation of the Supreme Court’s historic decision in Bostock v. Clayton County, which affirmed protections against discrimination based on sexual orientation and gender identity. The EEOC requires sufficient resources and tools to continue to prevent and remedy employment discrimination, both now and far into the future. In fiscal year 2021, the agency prioritized ensuring that it had sufficient staff to address its expanding workload. During fiscal year 2021, the agency filled more than 450 positions and ended the year with more than 2,100 employees. Notably, the majority of positions were filled by individuals who were new to the agency and predominately front-line staff (investigators, mediators, attorneys, and equal employment specialists, among other positions). As a result of this hiring effort, 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 provide quality service to the public and ensure timely and appropriate resolution of discrimination charges. 

With a focus on increased staffing, the EEOC was able to realize significant program accomplishments. For example, in fiscal year 2021, the pending inventory level was maintained in a range that provides a manageable workload, with 42,811 charges in the private sector, a slight increase over fiscal year 2020 levels. Having additional staff to focus on inventory management enhances service to the public and allows staff additional time and resources to devote to developing and resolving meritorious charges of discrimination. As a result, the agency increased the overall merit factor rate in private sector charges from 17.4% in fiscal year 2020 to 19.2% in fiscal year 2021, secured over $350.7 million in monetary relief for individuals during the administrative process, was successful in 41.1% of conciliations, and obtained targeted, equitable relief in 92.6% of all conciliation agreements. 

With increased staffing in fiscal year 2021, the EEOC was also able to focus on strengthening the agency’s ability to combat employment discrimination in the federal government. The agency has adjudicatory responsibilities in the federal EEO complaints process, including hearings before administrative judges on discrimination complaints by federal employees or applicants, as well as deciding appeals of federal agency determinations on whether discrimination occurred. The EEOC’s federal sector hearings inventory management efforts were also successful with the year-end inventory of hearings declining 6.2% to 10,225. The EEOC also continued focusing on resolving the oldest appeals and those that vindicate employees’ legal rights or preserve their access to the EEO complaint process. Using these approaches, the EEOC resolved 4,172 appeals. Moreover, 1,902 of the total appeal resolutions were issued within 180 days of receipt. These included 815 initial appeals from procedural dismissals that terminated complainants’ participation in the EEO process. The EEOC’s appellate review programs reversed nearly 31% of federal agency procedural dismissals, ordering federal agencies to continue processing the EEO complaint. Quickly addressing appeals involving procedural dismissals of complaints has been critical to effectively preserving access to the EEO complaint process.

• Addressing Systemic Discrimination on all Bases

Addressing 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 causes widespread harm to workers, workplaces, and the economy. Without systemic enforcement, many discriminatory systems and structures would persist -- leading to more harm to individuals subject to such discriminatory practices and potentially more individuals filing charges of discrimination against their employers. A robust systemic program allows the EEOC to make change on a national, regional or industry level while helping substantial numbers of employees at once.

In fiscal year 2021, the Commission renewed its attention to tackling systemic employment discrimination in all forms and on all 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 with more than 342 systemic investigations resolved on the merits and more than $24.4 million in monetary benefits obtained. In addition to providing monetary relief to charging parties and other aggrieved individuals, these resolutions included targeted equitable relief designed to change employment practices, prevent future discrimination and bring respondents into compliance with the law. The EEOC secured targeted equitable relief in 100% of successful systemic conciliations.

When efforts to combat systemic discrimination through voluntary compliance fail, litigation may be necessary to remedy and prevent future discrimination. In fiscal year 2021, the EEOC resolved 26 systemic suits, obtaining a total of approximately $22.7 million for 1,671 individuals and significant equitable relief. As just one example, in EEOC v. JBS USA, LLC, d/b/a JBS Swift & Company, No. 1:10-cv-02103 (D. Colo. June 8, 2021), the EEOC alleged that the operator of a slaughterhouse and meat packing facility denied Black Somali Muslim employees religious accommodations and subjected them to harassment based on race, national origin, and religion, and disciplined and discharged Somali Muslim employees because of their national origin and religion and in retaliation for requesting religious accommodations. The 83 charging parties and other claimants were recent immigrants who were denied prayer accommodations, subjected to derogatory graffiti and offensive comments by coworkers, and refused breaks during Ramadan. The consent decree in this case provides $5.5 million for over 300 claimants and requires the employer to provide clean and appropriate locations to observe religious beliefs, conduct EEO trainings, and implement policies addressing discrimination and religious accommodation.  The EEOC also filed 13 new systemic lawsuits in fiscal year 2021. The allegations in these lawsuits involved systemic sexual harassment, challenges to employment policies that limit the rights of individuals with disabilities, sex-based assignments, sex-based failure to hire, failure to accommodate pregnant employees, race harassment and disparate pay, and age- and national origin-based layoffs.

The Biden Administration has called for a whole-of-government approach to addressing systemic discrimination and advancing equal opportunity. During fiscal year 2021, the EEOC played a critical role in advancing diversity, equity, inclusion, and accessibility in the federal government, including by:

• Working closely with the administration in the drafting and implementation of Executive Order 14035: Diversity, Equity, Inclusion, and Accessibility (DEIA) in the Federal Workforce.
• In conjunction with the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM), conducting outreach and assisting agencies in implementing Executive Order 14035. 
• Partnering with the White House Domestic Policy Council, OMB, OPM, and the Department of Justice to serve on the implementing committees for Executive Order 13988: Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation.
• Providing consultation in support of Executive Order 13985: Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. For example, EEOC provided training and outreach on how Executive Order 13985 interacts with other executive orders and memoranda.
• Partnering with the White House National Security Council to serve as subject matter experts assisting with the implementation of the Diversity, Equity, Inclusion and Accessibility provisions of the Presidential Memorandum of February 4, 2021: Revitalizing America’s Foreign Policy and National Security Workforce, Institutions, and Partnerships.

• Advancing Racial Justice

Over the past five fiscal years, approximately a 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 2021.   

In fiscal year 2021, EEOC conciliated a case against a major U.S. employer which found evidence of discrimination in promotion on the basis of race against African American/Black employees, and resolved the case for over $10 million in relief, substantial changes to policies and practices, and reporting to the EEOC to make sure that the employer remains in compliance with the law.  The EEOC also resolved a systemic investigation involving discriminatory client preferences in assignments that discriminated against African Americans. This investigation resolved for over $100,000 in monetary relief for the charging party and other impacted workers and targeted equitable relief designed to end assignments based on race. Additionally, the EEOC resolved a systemic investigation involving discriminatory discipline, termination, and promotion on the basis of race, Black.  As part of the resolution for this investigation, the respondent agreed to make mentorship, training, development, and networking opportunities available to Black employees, and participate in community organizations that promote hiring and development of Black employees and managers. 

When efforts to combat racial discrimination through voluntary compliance fail, litigation may be necessary to remedy and prevent future discrimination. In fiscal year 2021, the EEOC resolved 21 lawsuits alleging race or national origin discrimination for approximately $15 million in monetary relief benefiting 798 individuals. As just one example, in EEOC v. Cardinal Health 200, LLC d/b/a Cardinal Health; and Howroyd-Wright Employment Agency d/b/a AppleOne Employment Services No. 5:19-cv-00941 (C.D. Cal. July 8, 2021), the EEOC alleged that the defendants subjected Black employees to a hostile work environment, disparate treatment, and constructive discharge based on their race, and retaliated against employees for opposing racial discrimination. Black employees were subjected to continuous derogatory racial comments by coworkers, supervisors, and managers, including the use of the n-word and references to Black employees as monkeys and slaves. In addition, restroom facilities were defaced with racist graffiti. Despite complaints, the racist conduct continued, resulting in the constructive discharge of some Black workers. Black workers were also given less favorable assignments and were denied cross-training that would make them more desirable for permanent positions. Black workers who complained were denied full-time positions, constructively discharged, and discharged. The case was resolved by separate consent decrees with Cardinal Health and AppleOne. Cardinal Health will pay $1.45 million to about 45 claimants. Both decrees enjoin race harassment and retaliation and provide for revised policies, race discrimination trainings, and extensive recordkeeping and reporting. In fiscal year 2021, the EEOC also filed 7 new class cases involving race (6 alleging race-based harassment and 1 alleging disparate pay based on race) and another 14 individual cases involving race or national origin discrimination.

Race also remains among the most alleged protected bases in federal sector discrimination complaints. During fiscal year 2021, the EEOC received approximately 2,377 hearing requests involving race as a basis of discrimination. During the same time period, EEOC’s federal sector received 1,052 appeals that alleged discrimination on the basis of race/Black. EEOC’s federal sector hearings and appeals programs remain committed to eradicating race discrimination and all other forms of employment discrimination.

During fiscal year 2021, through education and outreach, the EEOC continued to play a pivotal role in promoting racial justice and confronting systemic barriers in the workplace. The EEOC reached out to Asian Americans, African Americans, and other groups and conducted outreach through listening sessions, panel discussions, trainings and other meetings to strategize ways to combat racial and ethnic harassment and discrimination. During fiscal year 2021, the agency conducted 261 outreach sessions involving issues related to race, which were attended by 35,162 individuals, and 245 sessions on national origin discrimination, with 16,521 attendees. For example, the EEOC hosted a virtual event on the intersection of Asian American, Native Hawaiian and Pacific Islander (AANHPI) and LGBTQ+ identities to highlight the one-year anniversary of the Supreme Court’s Bostock decision, the impacts of the pandemic, and the uptick in anti-Asian hate crimes.

The 2021 EEOC-Fair Employment Practices Agencies (FEPA) Virtual Training Conference included presentations on the topics of Black hair and workplace discrimination law as well as racial equity. In addition, in recognition of the significant relationship between the EEOC and our tribal partners, the EEOC conducted a virtual Tribal Employment Rights Organization (TERO) conference in fiscal year 2021. A key presentation addressed efforts to develop a comprehensive and expansive model law covering various aspects of employment including anti-discrimination protections that could be adopted separately by each sovereign tribal nation. To close the first day of the TERO conference as well as the final day of the FEPA Conference, all attendees of both conferences were invited to join together for a special live event as a way of coming together as colleagues, tribal and non-tribal, all with the common goal of addressing and eliminating unlawful employment discrimination. 

To continue to strengthen our relationships with Tribal Nations and Native American communities, the EEOC partnered with OFCCP and the DOJ to present an interagency webinar to reach urban American Indian centers and tribal colleges and universities. The webinar shared agency efforts to support the Executive Order on Advancing Racial Equity, tribal consultation updates, and recent litigation to protect the rights of Native Americans. Participants included EEOC Chair Charlotte A. Burrows, DOJ United States Assistant Attorney General for Civil Rights Kristen Clarke, and OFCCP Deputy Director of Policy Maya Raghu.

• Enforcing Pay Equity

Although it has been more than 50 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 at an even greater level for 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 2021, the agency continued its important role of enforcing the prohibitions against pay discrimination through both outreach and enforcement, including litigation. For example, the EEOC resolved a systemic investigation alleging African Americans were discriminated against in wages based on race for over $200,000, which included monetary relief for the charging party and a class, and targeted equitable relief designed to change the discriminatory wage practices and prevent future discrimination.

When efforts to combat wage discrimination through voluntary compliance fail, litigation may be necessary to remedy and prevent future discrimination. In fiscal year 2021, the EEOC resolved 10 compensation discrimination cases for approximately $1 million benefiting 51 individuals. The EEOC’s significant wage resolutions in fiscal year 2021 included:

• EEOC v. AH 2007 Management, LP d/b/a Courtyard Monroe Airport, and Aimbridge Hospitality, LLC d/b/a Aimbridge Hospitality, LLC, No. 19-cv-914 (W.D. La. Feb. 3, 2021), alleging the operators of a hotel paid female guest services representatives (GSRs) less than a male GSR for performing equal work, and reduced the wages of the male GSR after a female GSR complained of the pay disparity, resolved for $400,000 for 25 claimants. 
• EEOC v. Enoch Pratt Free Library, No. 8:17-cv-02860 (D. Md. Dec. 23, 2020), alleging that a public library system paid five female librarian supervisors less than a male supervisor performing substantially equal work, resolved for $194,748 following a 5-day bench trial in which the court ruled in favor of the EEOC;
• EEOC v. Dell, No. 3:20-cv-03131 (N.D. Tex. Sept. 2, 2021), alleging that a technology company failed to pay a female IT analyst the same salary as a male IT analyst, resolved for $75,000; and
• EEOC v. First Metropolitan Financial Services, Inc., No. 1:18-cv-177 (N.D. Miss. March 18, 2021), alleging that a provider of consumer loans paid the charging party and other female branch managers less than males in the same job, resolved for $100,000 for the charging party and another individual. 

In fiscal year 2021, the EEOC also filed five cases involving compensation discrimination, four of which were based on sex and one based on race.

The EEOC is equally committed to the enforcement of equal pay laws in federal sector employment. During fiscal year 2021, the EEOC received 23 requests for hearings involving compensation discrimination. During this same time period, the EEOC received 154 appeals that alleged 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. 

Enforcement, outreach, education and training are essential tools that the EEOC uses to prevent and remedy pay discrimination. During fiscal year 2021, there were 124 outreach sessions with 24,248 individuals involving issues related to equal pay.

• Addressing the Civil Rights Impact of the Pandemic

The COVID-19 pandemic has proved to be not only a public health crisis and economic crisis, but also a civil rights crisis. COVID-19 and its economic fallout has disproportionately impacted people of color, women, older workers, individuals with disabilities, and other vulnerable workers. The EEOC has actively participated in the federal response to the pandemic from the start, including by providing ongoing information and technical assistance to covered entities, stakeholders, and members of the public regarding the application of federal employment discrimination laws to pandemic-related employment decisions.

On April 28, 2021, the EEOC convened a public hearing to explore the many ways in which the COVID-19 pandemic has impacted civil rights in the workplace. The Commission heard testimony from a wide range of experts about how the pandemic is harming already vulnerable populations. Hearing witnesses addressed how the pandemic has affected low- and middle-wage workers, Asian Americans, older workers, caregivers, migrant and farmworkers, workers of color, tribal communities, and Sikh workers. The Commission also heard from witnesses about the decline in workforce participation for women and individuals with disabilities, as well as the challenges employers are facing due to COVID-19, including how to keep the in-person workforce safe, whether to mandate vaccinations, and potential online harassment in the virtual environment.

The COVID-19 pandemic has had an enormous impact on and created challenges for both workers and employers. In the face of the difficult circumstances caused by the COVID-19 pandemic, the EEOC has prioritized conducting outreach and educating the public of rights and responsibilities under federal workplace discrimination laws. The EEOC has also provided workers, employers and other stakeholders updated information about the interplay of COVID-19 and federal EEO laws. During fiscal year 2021, there were 313 outreach events related to COVID-19, reaching 39,827 individuals.

In addition, the Commission has provided numerous resources to assist employers and employees as they grapple with pandemic-related issues, including:

• What You Should Know about COVID-19 and the ADA, Rehabilitation Act, and Other EEO Laws. The EEOC made several updates to this technical assistance document including adding a new section to the document on vaccinations and periodically adapting the vaccination materials to address new concerns. 
• The agency additionally updated a 2009 technical assistance document Pandemic Preparedness in the Workplace and the Americans with Disabilities Act to reflect changes arising during the pandemic. 
• To specifically address the needs and concerns of workers, the agency also published a COVID-19 Fact Sheet for Employees explaining the ADA rights of individuals during a pandemic.   

In March 2021, the Commission unanimously approved a resolution condemning the recent violence, harassment, and acts of bias against Asian Americans and Pacific Islanders in the United States that arose in response to COVID-19. The resolution reaffirmed the Commission’s commitment to combat all forms of harassment and discrimination against members of AAPI communities, and to ensure equal opportunity, inclusion, and dignity for all in the workplace.

The EEOC also participated in the Federal COVID-19 and Civil Rights Interagency Work Group hosted by the Department of Justice. During these quarterly meetings, federal agencies shared resources and efforts involving AAPI and COVID-19 related hate and discrimination. The discussion focused on efforts to combat related harassment and discrimination in schools, churches, public transportation, hospitals, public accommodations, small businesses, prisons, and workplaces.

In response to the spike in violence and harassment against Asian American and Pacific Islander communities related to COVID-19 misconceptions and bias, the EEOC facilitated the exchange of information across district offices, coordinated community engagement efforts with other federal agencies, and collaborated with the White House’s Initiative on Asian Americans, Native Hawaiians, and Pacific Islanders (WHIAANHPI).  Through regional roundtables, technical assistance programs, resource-sharing, virtual convenings, and webinars, the EEOC worked with the WHIAANHPI Regional Network to address specific community needs. Of note, the EEOC hosted a series of listening sessions with AAPI stakeholders across the country on national origin discrimination and harassment in the workplace. The EEOC also recently updated its website to add translated materials in seven additional languages, including Chinese, Korean, Tagalog, and Vietnamese, to better reach individuals with limited English proficiency.

In fiscal year 2021, the EEOC also partnered with the Department of Justice Civil Rights Division to support an online event held with the National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship and the International Leadership Foundation. The program focused on the federal response to the alarming increase in violence against Asian Americans and Pacific Islanders and support of President Biden’s Memorandum Condemning and Combating Racism, Xenophobia, and Intolerance Against Asian Americans and Pacific Islanders in the United States. Additional partners included the Taiwanese Chambers of Commerce of North America, Rhode Island Association of Chinese Americans, New York Young Entrepreneur Roundtable, the Mandarin Business Association, Kissimmee American Chinese Center, and the Global Federation of Chinese Businesswomen. Representatives from over 200 Asian American-owned small businesses and Asian American business organizations attended.

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. Although the pandemic and work-at-home restrictions brought hardships and new challenges, during the pandemic, the agency also realized many lasting benefits by adopting communication and collaboration technologies, as well as flexible infrastructures – such as Microsoft Teams and Windows Virtual Desktop – which will increase cross-collaboration and related efficiencies in the future. Perhaps most significantly, network investments for headquarters, VPN, and Microsoft Office 365/Azure connections enabled the EEOC to support maximum telework due to the COVID-19 pandemic.

In the future, our agency will 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.

The EEOC’s strategic plan requires that it “complete a shared vision and develop high-level plans with resource requirements for modernizing [our] charge/case management systems.” To meet this goal, the agency engaged with the Technology Modernization Fund (TMF), and in late fiscal year 2019, the TMF Board awarded the agency $4 million in two $2 million tranches. EEOC received the first tranche of TMF funds in early 2020, which provided the EEOC with the resources needed to modernize the legacy technology and data structure of its 20-year-old Integrated Mission System (IMS) over a two-year period. Over the last 18 months, the agency developed an end-to-end charge management solution for the agency’s private sector processes and the accompanying processes for its Fair Employment Practices agency (FEPA) partners. The private-sector component of the modernized system, now branded as the Agency Records Center (ARC), will be deployed early in fiscal year 2022 to 145 EEOC and FEPA offices. Following this deployment, development of ARC will shift to modernizing federal sector and litigation services.

By the end of fiscal year 2021, the EEOC had nearly completed its transition to the new Enterprise Infrastructure Solutions (EIS) contract. Migration to this contract is expected to reduce the agency’s annual data communications costs by nearly 50%, which are being re-invested in increased bandwidth and will enable agency personnel to communicate with voice, video, and data from any location.

In fiscal year 2021, the agency also deployed a new, user-friendly Freedom of Information Act (FOIA) solution to receive and respond to FOIA requests. The new system is compatible with the agency’s other digital systems and provides an automated workflow tailored to each FOIA process function, enabling staff to respond to FOIA requests with increased efficiency. 

In fiscal year 2021, the agency completed its multi-year implementation of Microsoft Teams Phone Services to replace and consolidate legacy telephone systems in use at headquarters and field offices. The agency-wide savings on phone services of over $1 million annually will be reinvested in other needed technology services. In addition to the cost savings, the introduction of Microsoft Teams has significantly improved the agency’s collaboration and communications capabilities.

The EEOC will 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 agency will continue to adapt to the challenges of conducting effective outreach during the pandemic. Some audiences can access programs virtually, while for others, such as underserved communities, it is more difficult. The EEOC will continue to use a variety of methods, depending on the specific audience, to conduct outreach, education, and training.

Financial Highlights

The Office of Management and Budget (OMB) Circular Number A-136 Revised dated August 10, 2021 was used as guidance for the preparation of the accompanying financial statements. 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 EEOC (assets); amounts owed (liabilities); and the net position of the agency divided between the cumulative results of operations and unexpended appropriations.

EEOC’s balance sheets show total assets of $107 million at the end of fiscal year 2021 and $93 million at the end of fiscal year 2020.

The Net Position is the sum of Unexpended Appropriations and the Cumulative Results of Operations. EEOC’s Net Position on its Balance Sheets and the Statement of Changes in Net Position show $28 million at the end of fiscal year 2021 and $19 million at the end of fiscal year 2020.

 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 2021, EEOC’s Consolidated Statements of Net Cost of Operations has not changed.

 

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 2021 and fiscal year 2020 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 $9 million for fiscal year 2021 when compared to fiscal year 2020.

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 2021, EEOC received a $404.5 million in budget authority. EEOC ended fiscal year 2021 with an increase by $14 million in total budgetary resources. Resources not available for new obligations at the end of the year totaled $7 million and $3 million in fiscal year 2021 and fiscal year 2020, 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 EEOC’s fiscal year 2021 use of resources by major object class. The chart below shows costs actually incurred by EEOC. It does not include costs incurred by others on behalf of EEOC. The chart shows that Pay and Benefits, State & Local, Rent to GSA and Other Contractual Services consumed 98% of EEOC’s resources, and other expenses (e.g., communication, utilities & miscellaneous charges, travel & transportation, supplies & materials, etc.) consumed 2% of EEOC’s resources for fiscal year 2021.

The dual axis chart below depicts EEOC’s compensation and benefits versus full-time equivalents (FTE) over the past six years. EEOC ended fiscal year 2021 with 1,927 FTEs, a net decrease of 12, or 1%, below fiscal year 2020.

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 2021. Based on the actions taken, and considering the agency’s controls environment as a whole, the agency concludes that during fiscal year 2021, its financial and internal controls systems were in compliance with the Federal Managers’ Financial Integrity Act (FMFIA). The controls systems were effective; agency resources were used consistent with the agency’s mission; the resources were used in compliance with applicable laws and regulations; and there was minimal potential for waste, fraud, and mismanagement of the resources.

There were eight financial non-conformances that were not fully corrected during the fiscal year. These financial non-conformances were identified in several audit reports prepared by the Office of Inspector General (OIG) through Harper, Rains, Knight & Company (HRK): Performance Audit Report on the EEOC Charge Card Program Fiscal Years 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; Performance Audit of EEOC’s Compliance with the Digital Accountability and Transparency Act of 2014 (DATA Act) (OIG Report No. 2019-003-AOIG), November 8, 2019; and Performance Audit Report on the EEOC Charge Card Program Fiscal Years 2018 and 2017 (OIG Report No. 2018-007-AOIG), May 31, 2019. The agency will continue its work to resolve these matters during fiscal year 2022.

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 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 internal control over financial reporting as of September 30, 2021 was operating effectively and no material weaknesses were found in the design or operation of the agency’s internal controls over financial reporting.

Charlotte A. Burrows
Chair
November 15, 2021

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

Office of Inspector General

November 12, 2021

MEMORANDUM

TO: Charlotte A. Burrows, Chair

FROM: Joyce T. Willoughby, Acting Inspector General

SUBJECT: Audit of the U.S. Equal Employment Opportunity Commission’s Fiscal Year 2021 Financial Statements (OIG Report No. 2021-003-AOIG)

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, 2021 and 2020, 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, 2021 and 2020, 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 2021 that would be reportable under GAGAS or OMB Bulletin 21-04, Audit Requirements for Federal Financial Statements.

HRK is responsible for the opinion on the attached auditor’s report dated November 12, 2021, 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:
Brett Brenner
Bryan Burnett
Elizabeth Fox-Solomon
Delner Franklin-Thomas
Carlton Hadden
Chris Haffer
Jacinta Ma
Carol Miaskoff
Mona Papillon
Cynthia Pierre
Kevin Richardson

 

 

Independent Auditors’ Report

Inspector General
U.S. Equal Employment Opportunity Commission

 

Report on the Financial Statements

We have audited the accompanying financial statements of the U.S. Equal Employment Opportunity Commission (EEOC). EEOC 's financial statements comprise the consolidated balance sheets as of September 30, 2021 and 2020, 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.

Management's Responsibility

EEOC's management is responsible for (1) the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; (2) preparing, measuring, and presenting the Required Supplementary Information (RSI) in accordance with accounting principles generally accepted in the United States of America; (3) 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 (4) maintaining effective internal control over financial reporting, including 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' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America; 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 21-04, Audit Requirements for Federal Financial Statements. Those standards and OMB require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. We are also responsible for applying certain limited procedures to RSI and other information included with the financial statements.

An audit of financial statements involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the auditors' assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal

Auditors' Responsibility (continued)

control relevant to the entity's preparation and fair presentation of the financial statements 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 the entity's internal control. Accordingly, we express no such opinion. An audit of financial statements also involves evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audits also included performing such other procedures as we considered necessary in the circumstances.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion on the Financial Statements

In our opinion, EEOC's financial statements present fairly, in all material respects, EEOC's financial position as of September 30, 2021 and 2020, 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.

Other Matters

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, 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 auditing standards generally accepted in the United States of America, 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 audit was 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. We read the other information included with the financial statements in order to identify material inconsistencies, if any, with the audited financial statements.

 

Other Information (continued)

The Message from the Chair and Other Information section has not been subjected to the auditing procedures applied in the audit of the financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

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, 2021, in accordance with U.S. generally accepted government auditing standards and OMB Bulletin 21-04, Audit Requirements for Federal Financial Statements, we considered the entity's internal control over financial reporting 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 the entity's internal control over financial reporting. Accordingly, we do not express an opinion on the entity's internal control over financial reporting. We did not consider all internal controls relevant to operating objectives as broadly established by the Federal Managers' Financial Integrity Act of 1982, such as those controls relevant to preparing performance information and ensuring efficient operations. We are required to report all deficiencies that are considered to be significant deficiencies or material weaknesses.

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 in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies, and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

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, noncompliance with which would have a direct and material effect on the financial statements. We performed our tests of compliance in accordance with U.S. generally accepted government auditing standards and OMB Bulletin 21-04, Audit Requirements for Federal Financial Statements. We caution that noncompliance may occur and not be detected by these tests.

 

Compliance and Other Matters (continued)

Management is responsible for complying with laws, regulations, contracts, and grant agreements applicable to the entity.

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts, and grant agreements applicable to the entity that have a direct effect on the determination of material amounts and disclosures in the entity's financial statements and perform certain other limited procedures. Accordingly, we did not test compliance with all laws, regulations, contracts, and grant agreements applicable to EEOC.

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant agreements disclosed no instances of noncompliance for fiscal year 2021 that would be reportable under U.S. generally accepted government auditing standards or OMB Bulletin 21-04, Audit Requirements for Federal Financial Statements. However, the objective of our tests was not to provide an opinion on compliance with laws, regulations, contracts, and grant agreements applicable to EEOC. Accordingly, we do not express such an opinion.

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 section is solely to describe the scope of our testing of internal control and compliance and the result 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 U.S. generally accepted government auditing standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

 

November 12, 2021
Washington, DC

*Note:  The status of funds unavailable include the Revolving Fund sequestration of $638,000 for fiscal year 2021 and fiscal year 2020.

(3)       Accounts Receivable, Net

Intragovernmental accounts receivable due from federal agencies arise from the sale of services to other federal agencies. This sale of services generally reduces the duplication of effort within the federal government resulting in a lower cost of federal programs and services. 

Accounts receivable due to the EEOC from the public arise from payroll debts and Revolving Fund education, training, and technical assistance provided to public and private entities or to state and local agencies. An analysis of accounts receivable is performed to determine collectability and an appropriate allowance for uncollectible receivables is recorded. Accounts receivable as of September 30, 2021 and September 30, 2020 are as follows:

 (4)      Property, Plant and Equipment, Net

Property, plant, and equipment consist of that property which is used in operations and consumed over time. The following tables summarize cost and accumulated depreciation of property, plant and equipment.

(5)       Non-Entity Assets

The EEOC has $0 of net receivables to collect on behalf of the U.S. Treasury as of September 30, 2021, and $0 of net receivables to collect on behalf of the U.S. Treasury as of September 30, 2020.

(6)       Liabilities Not Covered by Budgetary Resources

Liabilities not covered by budgetary resources represent amounts owed in excess of available congressionally appropriated funds or other amounts.

Liabilities not covered by budgetary resources as of September 30, 2021 and September 30, 2020 are shown in the following table:

              Liabilities Analysis

Current and non-current liabilities as of September 30, 2021 are shown in the following table:

Current and non-current liabilities as of September 30, 2020 are shown in the following table:

 (7)      Leases 

              Operating leases

The EEOC has several cancelable operating leases with the General Services Administration (GSA) for office space which do not have a stated expiration. The GSA charges rent that is intended to approximate commercial rental rates.  Rental expenses for operating leases as of September 30, 2021 and 2020 are $31,296,154 and $31,423,271 respectively. The EEOC does not have any noncancelable operating leases with terms longer than one year.

(8)       Earned Revenue

The EEOC charges fees to offset costs for education, training, and technical assistance. These services are provided to other federal agencies, the public, and State and local agencies, as requested. In the chart below, the fees from services do not include intra-agency transactions.  The Commission also has a small amount of reimbursable revenue from contracts with other federal agencies to provide on-site personnel. Revenue earned by the Commission as of September 30, 2021 and September 30, 2020 is as follows:

(9)       Appropriations Received

Warrants received by the Commission as of September 30, 2021 and September 30, 2020 are:

The EEOC received no warrant reductions for fiscal years 2021 and 2020.

 (10)    New Obligations and Upward Adjustments

Direct and Reimbursable new obligations, by apportionment category, incurred as of September 30, 2021 and September 30, 2020 are:

(11)     Funds from Dedicated Collections (Permanent Indefinite Appropriations)

The Commission has permanent, indefinite appropriations from fees earned from services provided to the public and to other federal agencies. These fees are charged to offset costs for education, training, and technical assistance provided through the Revolving Fund. This fund is a fund from dedicated collections and is accounted for separately from the other funds of the Commission. The fund is used to pay the cost (including administrative and personnel expenses) of providing education, technical assistance, and training by the Commission. Revenue is recognized as earned when the services have been rendered by the EEOC.

(12)     Imputed Financing

OPM pays pension and other future retirement benefits on behalf of federal agencies for federal employees. OPM provides rates for recording the estimated cost of pension and other future retirement benefits paid by OPM on behalf of federal agencies. The costs of these benefits are reflected as imputed financing in the consolidated financial statements. Expenses of the EEOC paid or to be paid by other federal agencies on September 30, 2021 and September 30, 2020 consisted of: 

 

(13)     Undelivered Orders at the End of the Period

The undelivered orders at the end of the period consists of the following:

(14)     Explanation of Differences between the Statement of Budgetary Resources and the Budget of the United States Government

The Statement of Budgetary Resources has been prepared to agree with the amounts shown in the Budget of the United States Government. The Budget of the United States Government containing the actual amounts for fiscal year 2021 has not been published at the time these financial statements were prepared. The Budget of the United States actual fiscal year 2020 amounts was released in May 2021. The fiscal year 2023 Budget of the United States Government with the actual amounts for the current year (fiscal year 2021) will be available at a later date.

The table below presents the fiscal year 2020 differences between the amounts reported in the fiscal year 2020 SBR and the actual fiscal year 2020 amounts reported in the fiscal year 2022 Budget of the U.S. Government for SBR lines Total Budgetary Resources; New Obligations and Upward Adjustments; Outlays, Net.

 (15)    Reconciliation of Net Cost to Net Outlays

The Budget and Accrual Reconciliation (BAR), requires a reconciliation of the net outlays on a budgetary basis and the net cost of operations during the period. 

 

 

 

 

 

OTHER INFORMATION