OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS Objective: Audit and evaluate the Agency’s programs and operations to promote economy, efficiency and effectiveness. PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 1. Deliver quality audit and Audit and inspection reports. FCA programs and operations are more effective. inspection products and services Details at Attachment 1. COO has begun an initiative to refine performance that are useful to the Board, measures. An inventory of products and services was management and/or the Audits and inspections are relevant. Audit coverage developed. The Agency policy on GPRA is also being Congress. includes all mandated audits and at least 75% of those refined. suggested by the Board and management. Four audits and six inspections were initiated to The CIO established a service level agreement that examine program efficiencies, especially the use of describes services available to the Agency. resources. Any audit specifically requested by a FCA Board member was performed. Video-conferencing accessibility has enhanced communication throughout the Agency. Risk is addressed. 100% of OIG audits are performed in high risk/high $ programs and activities and/or are tied to Waste in Agency programs and operations is reduced. the Agency strategic planning goals. All audits were in high-risk programs and/or were Increased Agency compliance with laws, regulations and tied to the Agency strategic plan. Focus was on internal policies and procedures. major Agency programs and implementation of new Through the partnership concept, the IG and FCA programs. Inspections were utilized for field office management: reviews. Each product was aimed at identifying 1) Received an unqualified opinion for the Agency’s FY 99 efficiencies and potential cost savings. financial statements; 2) Upgraded the Continuity of Operations Plan; 3) Switched telecommunication services to a more cost effective provider; and Improved communications including remote access New measures = green New Outputs = blue New Outcomes = red Page 1 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT service, tiered user-training for in-house computer applications, and improved policies for the Agency’s network system’s security. 1. Deliver quality audit and Findings made during audit fieldwork are recognized and inspection products and corrected by management prior to drafting of the audit services that are useful to the report. Board, management and/or the Congress (continued) Management worked with OIG to address findings during the following reviews: • FCA’s FY 1999 Financial Statements • Performance Measures • FCA’s Preparation for Year 2000 Compliance • Office of Examination’s Early Warning System Stress Model • Imprest Fund • Cash Management and Investment Practices • Telecommunication Costs and Services • Procurement and Supply Functions • Denver Field Office • McLean Field Office New measures = green New Outputs = blue New Outcomes = red Page 2 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 1. Deliver quality audit and Products are timely, i.e. average time to complete audits inspection products and services and issue draft reports will not exceed 6 months. that are useful to the Board, All audits were completed in within six months. management and/or the Congress Inspections were completed more rapidly (2 mos. or (continued) less, except for one which took 22 months to complete). Audits are constructive. At least 75% of audit products contain recommendations to improve Agency operations. 100 % of audits and inspections performed contain recommendations to improve Agency operations. The Agency accepts at least 80% of OIG audit recommendations. During this reporting period, there were 44 agreed upon actions or recommendations. All but one was accepted. The Agency actually implements all corrective actions prescribed by management decisions. 75% of the corrective actions have been implemented. The remaining 25% of those recommendations that have been accepted by management are not yet implemented. New measures = green New Outputs = blue New Outcomes = red Page 3 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 2. Provide technical advice and assistance The IG advises the Chairman concerning policy direction or OIG input and advice contributes to Agency to Agency officials in developing sound administrative priorities. decisions and actions that are more management information and financial The IG delivered two advisories to the Chairman concerning complete and valid at their inception. reporting systems and in streamlining policy issues and administrative priorities. programs and organizations. OIG worked with Agency management to OIG performs analysis and provides technical advice to identify alternatives to its financial management concerning accounting, management systems and management system. controls, and performance measures. Technical analysis and advice was provided through the Increase in management requests for following: advice, audit work or technical assistance. • GPRA implementation/performance measures Agency management regularly asks OIG • Incidental expenses staff to look at policies and operating • Acquisition of Financial Management System from procedures. External Source • Travel - per diem OIG was asked to engage a contractor to • Compensation workgroup validate the FCA’s Early Warning System. • FCA Accountability Report • Telecommuting OIG is a laboratory of change, a model for best practices. OIG has employee • Inclusion of pay differential in retirement calculation contracts and an interdisciplinary team • Budgeted Contract Funds v. Actual Use approach to projects. • Physical Security • Flattened internal organizations. OIG also has entered into an interagency MOU to provide OIG with personnel New measures = green New Outputs = blue New Outcomes = red Page 4 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT services. This is a pilot program. • Service Level Agreements were reviewed and OIG gave comments. OIG extended its expertise in • Family-friendly initiatives were expanded and approved. administering surveys to include a Regulatory survey to customers of the Agency who have commented on regulations. New measures = green New Outputs = blue New Outcomes = red Page 5 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 3. Continuous improvement of OIG staff, Customer survey feedback is used to improve products and Peer review reports provide an unqualified products and internal administration. services. opinion that OIG audit work meets or exceeds quality audit standards prescribed by GAO and OIG training ensures the technical proficiency of staff. the PCIE/ECIE. Training classes attended for proficiency: Peer review performed of audit operation was • Audit Evidence and Working Papers (Burr) successfully completed by the National • Attendance and Leave (Burr) Archives and Records Administration OIG • Nat’l. Diversity Symposium (Burr) during this period. • Governance in the 21st Century (Dean) • Advanced Mediation (Dean) Customer survey feedback evidences increased • 2000 Economic Crime Summit (Ohlstrom) satisfaction with report practices. • Introduction to Federal Budgeting (Ohlstrom) Report survey customer feedback was positive with 4.5 average (of a possible 5). • Introduction to Program Evaluation (Ohlstrom) • Strategist v. Planner (Ohlstrom) • Clear Writing Through Critical Thinking (Lewandrowski) • Time Management (Lewandrowski)) • National Intergovernmental Audit Forum (Stoehr) • PCIE/ECIE Training (Stoehr) New measures = green New Outputs = blue New Outcomes = red Page 6 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 3. Continuous improvement of OIG staff, OIG implements administrative improvements identified The Inspector General’s opportunity to facilitate OIG products and processes. through reviews of other Agency programs and through staff positive change within the Agency is enhanced by (continued) involvement with the professional community. the quality and credibility of OIG products and • OIG staff members enter into a performance contract advice. with the IG, identifying projects and responsibilities. OIG staff actively develops ideas for adding Similarly, the IG and the Agency Chairman sign a value to the Agency and OIG operations. Part performance contract. of OIG performance contracts involve • OIG teambuilding is ongoing. identifying specific ideas to review in the • Equipment upgrades allow more professional products upcoming year. to be produced in-house. OIG welcomes the Agency to use the equipment. This has resulted in more This reporting period an Administrative professional products and acquisition of the necessary Burden Workgroup was led by an OIG staff equipment within the Agency. member to streamline routine procedures • Time tracking has been streamlined. • OIG has made a decision to reach “Agreed Upon The Agency has expanded work/life Actions” in audits and inspections when possible. programs. Casual dress is permitted, maxi- • The Hotline number has gained more visibility by being flex, telecommuting, and credit hours are put on the FCA website. OIG also has an independent allowed. Internet Hotline account, outside the FCA The Agency received an award for Work/Life infrastructure. programs presented by OPM. The PCIE/ECIE awarded an OIG staffer recognition for her contribution. New measures = green New Outputs = blue New Outcomes = red Page 7 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT OIG was asked to prepare a revised leave policy, comparable to other financial regulators. It is being evaluated by Agency management. New measures = green New Outputs = blue New Outcomes = red Page 8 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 OIG PERFORMANCE MEASURES INVESTIGATIONS Objective: Investigate observed, alleged or suspected wrongdoing to prevent and detect fraud, waste, abuse and mismanagement in Agency programs and operations. PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 1. Administrative and criminal violations Investigative reports are timely and presented in an objective Administrative action, convictions or pleas are relating to FCA programs and personnel and factual manner. Memoranda are issued to management obtained for employees and/or contractors found are effectively investigated and describing internal control weaknesses or program guilty of wrongdoing. reported. deficiencies found during the investigative process with suggestions to prevent and/or detect future wrongdoing. Management actions taken against employees 70% of active cases will be less than two years old (from serve as a deterrent to future wrongdoing. the date the case was opened). FCA internal policies, procedures and controls are 100% of employee cases without criminal prosecution strengthened to prevent and/or detect future potential will be completed within one year from opening wrongdoing. the case. The average time to complete the two closed investigations, which were unsubstantiated, was Three investigations were open at the beginning of this five months. period. One more was opened during the period and two were closed during FY 2000. Management more actively oversees FECA claims by employees. FCA management cleared a backlog of determinations on personnel security levels and had five-year reinvestigations brought up to date. New measures = green New Outputs = blue New Outcomes = red Page 9 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 OIG PERFORMANCE MEASURES INVESTIGATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 2. FCA employees and managers Allegations of wrongdoing are received in a timely manner Investigations are more successful because they recognize their responsibility to and are supported by specific information. are initiated in a timelier manner and have better immediately report observed or Several anonymous letters were received in OIG. The information. suspected wrongdoing to the IG. letters included some suggestion of inappropriate behavior within the examination operation of the FCA employees are more willing to report real or Agency. OIG arranged for a threat assessment. OIG suspected wrongdoing because they trust the developed an employee survey to assist in assessing the competence and fairness of OIG’s investigations. extent of the problem behavior. A consultant was hired The OIG is notified promptly whenever to tabulate and interpret results. wrongdoing is observed or suspected in FCA programs. Various offices have sought guidance to avoid problems or to resolve potential problems before there is a need for investigation. 3. Agency officials and Congress are kept Summaries of investigations and the resulting administrative The Chairman and Congress are better informed fully and currently informed of problems or judicial actions taken are incorporated into the Semiannual about OIG investigations, administrative and judicial found in the process of and resulting Report to Congress, along with any disagreements on the consequences. from investigative activities. actions taken or failure of management to act in a timely and responsible fashion. Public confidence in the integrity of FCA programs and internal operations are heightened. Findings made during the investigative process concerning the problem at issue or systemic problems are recognized and corrected or mediated by management. New measures = green New Outputs = blue New Outcomes = red Page 10 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 OIG PERFORMANCE MEASURES INVESTIGATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT New measures = green New Outputs = blue New Outcomes = red Page 11 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES REVIEW OF LEGISLATION AND REGULATIONS Objective: Review and make recommendations regarding existing and proposed legislation and regulations relating to Agency programs and operations and the Inspectors General community. PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 1. Maintain an effective program for Processes are established and documented for identifying OIG input is part of the decision making process in reviewing and commenting on proposed and circulating (as appropriate) relevant documents. approving or amending legislation, regulations, and existing legislation and regulations Legislation is tracked on a daily basis. The PCIE/ECIE circulars and other policy positions. affecting the Agency and the Inspectors Legislation Committee is active in forwarding interest General community. items. Constructive criticism and creative alternatives offered in OIG comments improve the quality and Constructive comments on relevant documents are submitted usefulness of documents initiated by the Agency. by the deadlines requested by the office, Agency or staff circulating comments. FCA Board and management are informed about Comments were submitted on time. the status of new or pending legislation or regulations initiated externally. Document review activity is summarized for inclusion in the Suggestions and responses to legislation Semiannual Report to Congress. proposed to amend the IG Act were developed and submitted to OMB and Congressional staffs. New measures = green New Outputs = blue New Outcomes = red Page 12 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES OUTREACH PROGRAM Objective: Work with our Agency head and the Congress to improve program management; and work with the Inspectors General community and other related organizations to address government wide issues. PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 1. Agency personnel understand and accept Develop and maintain educational brochures or pamphlets Agency employees’ acceptance of and OIG’s role within FCA and the community at describing OIG roles and activities. cooperation with OIG activities is improved large. through better understanding. OIG programs Facilitate feedback from Agency employees and refine and products are improved through feedback products and practices based on the feedback to OIG from Agency employees. products and educational materials In place of the traditional audit report, OIG policies have been refined and streamlined. Audit Agency management has been receptive to follow-up was merged with the Agency system so that the quick response reviews and agreed duplication of effort will be avoided. upon action techniques. Information concerning the OIG HOTLINE can be Separate Internet account opened to ensure obtained through linkage with the OIG Semiannual confidentiality. The account is with an Report in the FCA database. outside vendor and cannot be accessed by FCA administrators. 2. OIG staff provides leadership to Time and resources are provided to OIG staff members as Projects and activities of adjunct organizations organizations directly contributing to the an incentive to contribute to outside organizations by such as the AGA, IIA, PCIE/ECIE, CCIG, Inspectors General community. serving on committees and holding offices. FLETC, and IGATI are improved by OIG staff contributions and participation. New measures = green New Outputs = blue New Outcomes = red Page 13 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES OUTREACH PROGRAM PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 2. OIG staff provides leadership to organizations Professional Organizations-staff are active in meetings The IG also participated in commenting on directly contributing to the Inspectors General and sessions of PCIE/ECIE and other professional proposed AICPA rule change. community. (continued) organizations including: Institute of Internal auditors, Association of Government Accountants, Council of The IG worked on the PCIE/ECIE Strategic Counsels, Association of Federal Investigators, Planning Committee to develop a strategic FIRREA Work/Life Coordinators, Training plan and performance measures. Coordinators, International Association of Financial Crime; Executive Women’s’ Group, and Instructor at Counsel nominated to be Co-Chair of Inspectors General Auditor Training Institute Council of Counsels. OIG networking opportunities have resulted in an expanded consideration of FCA ideas and practices by community contacts and experts. OIG’s Management Analyst earned PCIE/ECIE award for work/life efforts. The Inspectors General community is more credible and effective. New measures = green New Outputs = blue New Outcomes = red Page 14 of 13 OFFICE OF INSPECTOR GENERAL FY 2000 PERFORMANCE MEASURES OUTREACH PROGRAM PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 3. OIG staff contributes to special projects for OIG staff will participate in projects that will contribute to Management practices at the Agency are improving the Agency, the OIG community achieving the vision of a better Agency and government. improved by OIG staff participation in FCA and the government. • Senior Staff special projects. • EEO Advisory Committee . • Accountability Report Workgroup FCA programs and operations are more • Employee Council effective and efficient. • Farm Credit Club OIG involvement with IG community • Mentoring Program facilitates an efficient way to get answers or feedback from many different contacts • OPM GPRA Interest Group and networks. • Administrative Burden Reduction Workgroup • Federal Women’s Program Workgroup • FIRREA Work/Life Coordinators New measures = green New Outputs = blue New Outcomes = red Page 15 of 13 Attachment 1 AUDIT RESULTS AUDIT AUDITS ARE RISK IS PRODUCTS ARE AUDITS ARE AGENCY NAME RELEVANT ADDRESSED TIMELY CONSTRUCTIVE ACCEPTS 80% Procurement and Supply OIG Initiated 4 Months 2 Recommendations Accepted one; rejected one Functions 12 Agreed Upon Actions Accepted all; implemented Seven FY 2000 Financial Annual Audit Strategic Plan 4 Months 2 Recommendations Accepted and implemented Statements (Voluntary Both Compliance with CFO Act) As issues were Preparation for Year 2000 provided to Compliance Management, they were addressed immediately. OE’s Early Warning OIG Initiated 6 Months 1 Recommendations Accepted and implemented System Stress Model 1 Agreed Upon Action both Attachment 2 Attachment 2 INSPECTION RESULTS INSPECTION INSPECTIONS ARE PRODUCTS ARE INSPECTIONS ARE AGENCY NAME RELEVANT TIMELY CONSTRUCTIVE ACCEPTS 80% McLean Field Office OIG Initiated 3 Weeks 3 Agreed Upon Actions Accepted and implemented all. Telecommunication Costs OIG Initiated 6 Agreed Upon Actions Accepted all; implemented and Services five. Performance Measures OIG Initiated 22 Months 2 Recommendations Accepted both. Not yet implemented. Imprest Fund OIG Initiated 2 Months 8 Agreed Upon Actions Accepted all; implemented seven. Cash Management and OIG Initiated 4 Months 8 Agreed Upon Actions Accepted all. Not yet Investment Practices implemented. Denver Field Office OIG Initiated 1 Month 1 Agreed Upon Action Accepted. Implemented.
Published by the Farm Credit Administration, Office of Inspector General on 2001-01-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)