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2011 Performance and Accountability Report

Management’s Discussion and Analysis

Introduction

This FY 2011 Performance and Accountability Report (PAR) was prepared in accordance with the Reports Consolidation Act of 2000 and the Office of Management and Budget’s (OMB) Circular A-136, Financial Reporting Requirements. It presents the results of the U.S. Equal Employment Opportunity Commission’s programs and financial performance, along with its management challenges. This section of the PAR summarizes agency efforts in each of these areas. A more detailed discussion can be found in the following sections of the report:

  • Performance Results: highlight the progress made in meeting the agency’s performance measures, which are articulated in its modified Strategic Plan for FY 2007 through FY 2012.

  • The Inspector General ’ s Statements: present key management challenges identified by the Inspector General, the agency’s progress and plans to address them, and a statement of compliance with the Federal Managers’ Financial Integrity Act (FMFIA).

  • The Consolidated Financial Statements: demonstrate the EEOC’s efforts to be a good steward over the funds the agency receives to carry out its mission. Included in this section is an independent auditor’s opinion on the agency’s financial statements.

This report also satisfies the Commission’s obligation to provide Congress with annual reports of the agency’s significant accomplishments achieved during the fiscal year.

Agency Overview

The U.S. Equal Employment Opportunity Commission (EEOC or Commission) is the leading federal law enforcement agency dedicated to eradicating employment discrimination on the basis of race, color, national origin, sex, religion, pregnancy, age, disability, and family medical history or genetic information. The agency began its work more than 45 years ago and while there have been significant changes in society and the workplace, the public continues to rely on the EEOC to carry out its responsibility to bring justice and equal opportunity to the workplace.

The Commission receives, investigates, and resolves charges of employment discrimination filed against private sector employers, employment agencies, labor unions, and state and local governments. Where the Commission does not resolve these charges through conciliation or other informal methods, it may also file suit in court against private sector employers, employment agencies and labor unions (and against state and local governments in cases alleging age discrimination or equal pay violations). The EEOC also leads and coordinates equal employment opportunity efforts across the federal government, and conducts administrative hearings and issues appellate decisions on complaints of discrimination filed by federal employees and applicants for federal employment. Finally, the Commission engages in extensive communication and outreach, provides technical assistance, and promulgates regulations and written enforcement guidance to help employers and employees better understand their rights and responsibilities under the laws the EEOC enforces.

A more detailed explanation of the EEOC’s structure and the laws it enforces can be found in Appendix A.

Agency Results Under Strategic Plan Performance Measures

The FY 2011 PAR is based on EEOC’s current modified Strategic Plan for FY 2007 through FY 2012, which is located at: http://www.eeoc.gov/eeoc/plan/strategic_plan_07to12_mod.cfm. Following the enactment, on January 4, 2011, of the Government Performance and Results Act Modernization Act of 2010 (GPRAMA), the agency began a concerted effort to develop a new Strategic Plan for implementation in FY 2012. The results reported in this PAR, however, are linked to the performance measures contained in the agency’s current modified Strategic Plan, which were in effect during FY 2011.

The current Strategic Plan provides one Strategic Objective: Justice, Opportunity and Inclusive Workplaces. The performance measures under this Strategic Objective include two long-term, six annual, and one efficiency measure. EEOC achieved or exceeded its targets for five measures and did not meet the targets for three other measures. The Commission intends to assess all of the agency’s current measures during the overall strategic planning assessment for its new Strategic Plan.

EEOC FY 2011 Performance

Measures

Met

Targets Met or Exceeded

Not Met

Targets Not Met

TBD Pending Strategic Planning Assessment

9

5

3

1

The agency’s nine performance measures are directly related to its key front-line enforcement operations—processing private sector charges, litigating private sector cases, and conducting hearings and appeals of federal sector cases—in order to achieve its strategic objective of ensuring that employment opportunities are not based on impermissible factors and encouraging inclusive workplaces nationwide.

The first two of these measures seek to identify the degree to which the agency’s enforcement programs enhance the workplace for other employees when it obtains relief for the people who originally claimed employment discrimination, as well as how efficient the Commission was in obtaining that broad relief. As noted in the table below and further described in the Performance Section of this report, the agency was extremely successful in achieving results for these two measures, when compared to the established targets. The Commission will reevaluate the utility of maintaining these performance measures and the associated targets established for FY 2012 in conjunction with its Strategic Plan development process.

 

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

Long-Term/Annual Measure 1

Percent increase of individuals benefited from enforcement programs

Target

Baseline Established

2.0%

10.0%

12.2%

15.6%

Result

222.9%

234.3%

326.3%

230.3%

Efficiency Measure

Percent increase of individuals benefited for each agency employee (in FTEs)

Target

Baseline Established

1.8%

2.2%

4.3%

7.4%

Result

220.2%

229.1%

285.7%

184.5%

The following measures for which EEOC either met or exceeded its objectives also reflect key aspects of the agency’s enforcement and litigation programs. They involve the agency’s success in:

  • Ensuring that the agency achieves a high level of quality in its investigations of private sector discrimination charges;

  • Continuing to ensure that charging parties and respondents who choose to participate in the Commission’s alternative dispute resolution (ADR) program are satisfied with the ADR process; and

  • Maintaining a high level of success in the Commission’s litigation program.

Completing a high percentage of its federal sector appellate cases within 180 days or less, remains a challenge for the agency, which fell short of its intended goals for this measure in FY 2011. Nevertheless, the EEOC is committed to reducing its appeals inventory moving toward to the final goal in FY 2012. The results for these measures are summarized below and are more fully described in the Performance Section of this report.

Annual Performance Measures

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

2.3 Federal Sector Appellate Resolutions Measure

Percent of appellate resolutions completed within 180 days or less

Target

60.0%

62.0%

64.0%

66.0%

68 %

Result

60.7%

63.3%

65.0%

66.2%

54,4%

2.4 Quality Measure

Percent of charge investigation files that meet quality criteria

Target

88.0%

90.0%

90.0%

91.0%

92.0%

Result

93.5%

97.0%

95.1%

96.0%

95.6%

2.5 ADR Measure

Percent of respondents and charging parties confident in ADR program

Target

90.0%

91.0%

92.0%

93.0%

94.0%

Result

95.8%

96.5%

96.0%

96.7%

96.9%

2.6 Litigation Measure

Percent of litigation successfully resolved

Target

90% or higher

90% or higher

90% or higher

90% or higher

90% or higher

Result

91.5%

91.2%

90.3%

90.2%

90.0%

EEOC’s final two measures involve the resolution of private sector charges and federal sector hearings within 180 days or less. Because of a continued emphasis on reducing the large, pending inventory, along with increasing workloads, and the need for additional resources, the Commission did not meet its FY 2011 targets for these measures. However, it is anticipated that through its multi-year approach to reducing the pending inventory, the agency will make progress toward improving its performance and meeting these goals. These measures are being evaluated by the Commission as part of its strategic planning efforts.

The results for these measures are summarized below and are more fully described in the Performance Section of this report:

Annual Performance Measures

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

2.1 Private Sector Charge Resolutions Measure

Percent of private sector charge resolutions completed within 180 days or less

Target

72.0%

48.0%

48.0%

48.0%

51.0%

Result

55.7%

48.5%

39.7%

38.3%

40.7%

2.2 Federal Sector Hearings Resolutions Measure

Percent of hearings resolutions completed within
180 days or less

Target

50.0%

50.0%

50.0%

52.0%

53.0%

Result

42.8%

38.6%

40.6%

37.4%

34.3%

Related Program Results and Activities Highlights

Serving the Public More Efficiently

In FY 2011, the EEOC produced historic levels in its year-end results. Most notably, the pending inventory of private sector charges was reduced by more than 8,000 charges over the FY 2010 level, bringing the level to 78,136, which is the first reduction in inventory since FY 2002. These results were achieved despite having received a record number of receipts, 99,947 charges. A total of 112,499 charges were resolved - an increase over the 104,999 charges resolved in FY 2010.

In FY 2011, the EEOC secured more than $58 million in relief for parties who requested hearings in the federal sector. There were a total of 8,113 requests for hearings, more than the 7,707 received in FY 2010. Additionally, the Commission’s hearings program resolved a total of 7,672 complaints.

During the last fiscal year, the EEOC received 5,176 appeals of final agency actions in the federal sector, 13.8% more than the 4,545 such appeals received in FY 2010. This represented the largest percentage increase in receipts in more than 15 years. In FY 2011, the EEOC applied a more balanced approach to the resolution of the newest and oldest appeals. The agency resolved 4,510 appeals, including 54.4 percent of them within 180 days of their receipt.

Enforcing the Law More Effectively

The Commission believes that securing changes in employment policies, practices, and procedures through enforcement programs has a positive impact beyond the immediate victims of discrimination to all individuals in the affected workplace. Through EEOC enforcement programs in both the private and federal sectors, 5.4 million individuals benefitted from workplace improvements. This is substantially above the annual target established in Long-Term/Annual Measure 1 for FY 2011.

The EEOC’s private sector administrative enforcement activities secured more than $364.6 million in monetary benefits in FY 2011, the highest level of monetary relief ever obtained by the Commission through the administrative process. This is $45 million more than was recovered in FY 2010. Overall, the agency secured both monetary and non-monetary benefits for more than 19,570 people through administrative enforcement activities including mediation, settlements, conciliations and withdrawals with benefits.

Field legal units of the agency filed 261 merits lawsuits during FY 2011 – and increase of 11 lawsuits over FY 2010. These included 177 individual suits, 61 multiple-victim suits (with fewer than 20 victims) and 23 systemic suits. Legal staff resolved 277 merits lawsuits – compared to 285 in FY 2010 - for a total monetary recovery of $90.9 million. At the end of FY 2011, the EEOC had 443 cases on its active docket, of which 116 (26 percent) involved multiple aggrieved parties (but fewer than 20) and 63 (14 percent) involved challenges to systemic discrimination.

In FY 2011, EEOC field offices completed work on 235 systemic investigations resulting in 35 settlements or conciliation agreements, recovering $8.6 million. In addition, 96 systemic investigations were resolved with reasonable cause determinations. In FY 2011, the Commission filed 23 lawsuits – compared with 20 in FY 2010 - with at least 20 known or expected class members. These were 9 percent of all merits filings, and are the largest volume of systemic suit filings since tracking started in FY 2006.

Leadership in Federal Civil Rights Enforcement

The work of the Commission is made more efficient with interagency coordination and to this end, the EEOC has established active and ongoing relationships with other agencies as well as the White House. Coordinating with partners allows shared resources, information and ideas, resulting in a greater impact on many different communities and issues. In FY 2011 these efforts included EEOC participation in the Asian American and Pacific Islander (AAPI) Task Force,, the National HIV/AIDS Strategy, the National Reentry Council and theWhite House Equal Pay Task Force .

In FY 2011, the Commission published final regulations interpreting two new federal employment discrimination statutes. The EEOC issued its final rule implementing the Genetic Information Nondiscrimination Act of 2008 (GINA) employment provisions on November 9, 2010, and a final rule implementing the Americans with Disabilities Act Amendments Act of 2008 (ADAAA) on March 25, 2011.

Extending the EEOC’s Reach

The agency’s outreach programs reached nearly 540,000 persons in FY 2011 – an increase over approximately 250,000 in FY 2010. The EEOC participated in 6,264 no-cost educational, training, and outreach events reaching almost 512,000 people. Additionally, in FY 2011, the Training Institute trained over 26,400 individuals at more than 480 events, including 320 field Customer Specific Training events with approximately 16,000 attendees.

These efforts targeted small businesses, and underserved geographic areas and communities, and emphasized new statutory responsibilities, issues related to migrant workers, human trafficking and youth in the workplace.

Improved Labor Management Relations

Pursuant to the President’s Executive Order 13522: “Creating Labor-Management Forums to Improve Delivery of Government Services,” the EEOC established a National Joint Labor Management Council (JLMC) in addition to Councils in each of its 15 Districts, the Washington Field Office, and Headquarters. The National JLMC established three metrics to measure goal-related activities associated with implementing the Executive Order: “Improve Mission and Service Delivery”, “Employee Satisfaction and Engagement” and “Improved Labor-Management Relations.”

The Office of Personnel Management recognized the EEOC as one of the Most Improved Agencies in creating better working environments for their employees according to the 2011 Federal Employee Viewpoint Survey. The Commission was recognized for greatest improvement in the Leadership and Knowledge Management Index.

Federal Managers’ Financial Integrity Act

EEOC’s management controls and financial management systems were sound during FY 2011, with the exception of 10 findings of financial non-conformances. Five financial non-conformances were carried over from FY 2010, three more of which were carried over from FY 2009 and two more from FY 2008. The financial non-conformances were identified in several audit reports prepared by the Office of Inspector General: OIG Report No. OIG Report No. 2010-03-FIN, November 11, 2010; OIG Report No. 2009-05-FIN, January 12, 2010; OIG Report No. 2009-04-FIN, November 13, 2009; OIG Report No. 2008-06-FIN, December 11, 2008; OIG Report No. 2007-09-FIN, January 16, 2008; and OIG Report No. 2007-08-FIN, November 14, 2007.

In FY 2011, the agency corrected all of the 10 identified financial non-conformances. No new financial non-conformances were identified in FY 2011.

Based on the actions taken, and considering the agency’s controls environment as a whole, the agency concludes that during FY 2011 its financial and management controls systems were in compliance with the Federal Managers’ Financial Integrity Act (FMFIA). Thirty percent of the identified non-conformances were resolved during the fiscal year, and it has plans in place to resolve the remaining financial non-conformances in FY 2012. The controls systems were effective; agency resources were used consistent with the agency’s mission; the resources were used in compliance with laws and regulations; and, there was minimal potential for waste, fraud, and mismanagement of the resources.

Financial Highlights

The Office of Management and Budget (OMB) Circular Number A-136 Revised dated October 27, 2011 was used as guidance for the preparation of the accompanying financial statements. EEOC prepares four financial statements: the Consolidated Balance Sheets, Consolidated Statements of Net Cost, Consolidated Statement 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 $65 million at the end of FY 2011. This is a decrease of $21 million, or approximately a 24 percent change from EEOC’s total assets of $86 million for FY 2010. This change is due primarily to a decrease in EEOC’s Fund Balance with Treasury of $20 million offset by a decrease in Total Liabilities of $6 million and a decrease in Net Position of $15 million.

EEOC Balance Sheet (description in text)

The Net Position is the sum of Unexpended Appropriations and the Cumulative Results of Operations. At the end of FY 2011, EEOC’s Net Position on its Balance Sheets and the Statement of Changes in Net Position is $4 million, a decrease of $15 million, or 79 percent changed from the FY 2010 ending Net Position of $19 million. This decrease is due primarily to a decrease in EEOC’s Unexpended Appropriations for Fiscal Year 2011 and an offsetting increase in its Appropriations used the same year.

Consolidated Statements of Net Cost

The Consolidated Statements of Net Cost presents the gross cost incurred by major programs less any revenue earned. Overall, in FY 2011, EEOC’s Consolidated Statements of Net Cost increased by $17 million or 4 percent. The allocation of costs for FY 2011 shows that private sector resources used for enforcement and litigation increased $14 million, or 4 percent, while the Federal Sector Programs increased by $3 million or 6 percent.

EEOC Consolidated Statement of Net Cost (description in text)

Consolidated Statement of Changes in Net Position

The Consolidated Statement of Changes in Net Position represent the change in the net position for FY 2011 and FY 2010 from the cost of operations, appropriations received and used, net of rescissions, and the financing of some costs by other government agencies. The Consolidated Statement of Changes in Net Position decreased over last year by $15 million, or 79 percent. EEOC’s total assets exceeded total liabilities (funded and unfunded) by approximate $4 million, or 6 percent.

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 FY 2011, EEOC received a $367.3 million appropriation, with a rescission of $735,000.

EEOC ended FY 2011 with no increase in total budgetary resources. Resources not available for new obligations at the end of the year totaled $12 million and $10 million in FY 2011 and FY 2010, 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 FY 2011 use of resources by major object class. The chart shows that Pay and Benefits, State & Local, Rent to GSA and Other Contractual Services consumed 96 percent of EEOC’s resources, and other expenses (e.g., travel & transportation, equipment, supplies & materials, etc.) consumed less than 4 percent of EEOC’s resources for FY 2011.

EEOC Obligations by Major Object Class (description in text)


The dual axis chart below depicts EEOC’s compensation and benefits versus full-time equivalents (FTE) over the past six years. EEOC ended FY 2011 with 2,505 FTEs, a net increase of 120, or 5 percent, above FY 2010.

EEOC Compensation and Benefits (description in text)