Related resource: Use this OFCCP audit checklist to ensure you’re doing what is required to maintain OFCCP’s regulations including VEVRAA, Section 503, and EO 11246.
While not all federal contractors will participate in an OFCCP Audit, being prepared for the process is a good practice. If you do receive a notice, or scheduling letter from the Office of Federal Contract Compliance Programs, here is what you can expect during an OFCCP Desk Audit.
- The OFCCP will make initial contact with the contractor via an Equal Opportunity Specialist [EOS], and will require the following information be provided.
- Identifying Information, including the chief executive officer (CEO), person(s) responsible EEO/AA planning and hiring
- Any outside representation that will be involved in the process.
- Any special circumstances that should be factored into the process, such as bankruptcy, debarment, closure of the establishment, or anything that would impact the date of the review such as vacation shutdown, strike, etc. [i]
- The OFCCP will then submit a Scheduling Letter. This will be sent via certified mail with return receipt requested.
- The EOS will follow–up with the contractor within fifteen working days to ensure that the contractor or their representatives fully understand the requirements outlined and the desk audit will be scheduled.
- The OFCCP will conduct a Desk Audit. This is a major component of compliance reviews. During this time, the EOS will determine if the contractor is complying with relevant provisions and is not discriminating and taking affirmative action to ensure equal employment opportunity without regard to race, color, religion, national origin, sex, disability, or status as a special disabled or Vietnam era veteran. During the desk audit, the EOS will review a contractor’s compliance in certain areas including:
- Workforce Structure, Personnel Policies and Procedures: Examine the contractor’s basic organizational structure, personnel policies and procedures. [i]
- Good Faith Efforts: Identify areas: (1) where there has been a lack of goals progress and further information is needed onsite to evaluate the contractor’s good faith effort, including the development and implementation of programs designed to improve opportunities for minorities and women. [i]
- Potential Discrimination: Identify areas for an in-depth investigation of potential discrimination: (1) where minorities and women are underrepresented and concentrated in the workforce; (2) where employment activity has been disadvantageous to minorities or women; and (3) where there may be problems in the compensation of minorities or women vs. others. [i]
- Once the desk audit is completed, a report will be complied and will include three parts:
- Part A: Preparation: covers preparation for the desk audit, including such areas as the contractor’s past review history, overall EEO trends in its workforce, its organizational structure, and the initial review of its AAP and support data for completeness, reasonableness, and acceptability. [i]
- Part B: Affirmative Action: summarizes problems with the AAP and support data; provides for analysis of affirmative action progress and identification of areas where additional information is needed to determine good faith effort; and covers implementation of other affirmative action obligations. For each affirmative action problem unresolved at the conclusion of desk audit, an onsite plan is provided. [i]
- Part C: Potential Discrimination: includes review of the workforce analysis for concentrations/under representations, impact ratio analyses, and compensation analyses. For each potential discrimination problem unresolved at the conclusion of desk audit, an onsite investigative plan is provided.[i]
For more information on the OFCCP’s audit process, review the Department of Labor’s Federal Contract Compliance Manual here.
[i] Federal Contract Compliance Manual (FCCM), Desk Audit Review