OFFICE OF INSPECTOR GENERAL FY 2001 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 inspection products and Details at Attachment 1. effective. services that are useful to the Board, management and/or Audits and inspections are relevant. Audit coverage includes all COO has led efforts to resolve agreed upon the Congress. mandated audits and at least 75% of those suggested by the Board and actions in an OIG audit report on management. Performance Budgeting and continues to improve FCA business practices. In addition Three audits and three inspections were initiated to examine to an inventory of products and services, the program efficiencies, especially use of resources. time recording system was streamlined. GPRA Training and a workgroup to integrate Risk is addressed. 100% of OIG audits are performed in high risk/high $ operating plans and the budget involved programs and activities and/or are tied to the Agency strategic planning more Agency employees and created a goals. unified approach to submission of data for consideration by the Board. All audits were in high-risk programs and/or were tied to the Agency . strategic plan. Focus was on major Agency programs and Waste in Agency programs and operations are implementation of new programs. Inspections were utilized for field reduced. office reviews. Each product aimed at identifying efficiencies and potential cost savings. Agency management accelerated the implementation of a replacement financial Findings made during audit fieldwork are recognized and corrected by system. management prior to drafting of the audit or inspection report. Increased Agency compliance with laws, Management worked with OIG to address findings during: regulations and internal policies and procedures. • FCA’s FY 2000 Financial Statements; • Performance Budgeting Audit • Government Information Security Reform Act Review INSPECTIONS OF: • Affirmative Employment Program Action Plan • Office of Examination, Office of Chief Examiner Office of Examination, Special Examination and Supervision Division Products are timely, i.e. average time to complete audits and issue draft reports will not exceed 6 months. All audits were completed in within 10 months. Inspections were completed more rapidly (2 mos. or less). Page 1 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 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 Audits are constructive. At least 75% of audit products contain Through the partnership concept, the IG and inspection products and recommendations to improve Agency operations. FCA management: services that are useful to the Board, management and/or 100% of audits and 1 inspection contained recommendations to 1) Received an unqualified opinion for the Congress. improve Agency operations. the Agency’s FY 2000 financial (Continued) statements; The Agency accepts at least 80% of OIG audit recommendations. 2) Validated the security of Agency information; There were 19 agreed upon actions for change. All 3) Work-life program is a forerunner in recommendations were accepted by management. such areas as telecommuting, flexible work scheduling, flexible spending The Agency actually implements all corrective actions prescribed by account; and management decisions. 4) Addressing specific guidance to make the workplace a professional 20% of the corrective actions have been implemented. The environment without tolerance of remaining 80% of those recommendations that have been accepted inappropriate behavior. by management are not yet implemented. FCA is more effective in carrying out its mission. Use of video conferencing equipment has saved time and resources and made the mission more effective. 2. Provide technical advice and The IG advises the Chairman concerning policy direction or administrative OIG input and advice contributes to Agency assistance to Agency priorities. decisions and actions that are more complete officials in developing sound and valid at their inception. management information The IG delivered two advisories to the Chairman concerning policy and financial reporting issues and administrative priorities. Increase in management requests for advice, systems and in streamlining audit work or technical assistance. programs and organizations. Regularly, Agency management asks OIG staff to look at policies and operating procedures. OIG was asked to engage a contractor to validate the Agency’s Early Warning System. Page 2 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 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 3. Provide technical advice and OIG performs analysis and provides technical advice to management OIG is a laboratory of change, a model for assistance to Agency concerning accounting, management systems and controls, and best practices. OIG has employee contracts, officials in developing sound performance measures. and an interdisciplinary team approach to management information projects. and financial reporting Technical analysis and advice was provided through the following: systems and in streamlining • GPRA implementation/performance measures OIG also has entered into an interagency programs and organizations. • Performance budgeting MOU to provide OIG with personnel services. • Acquisition of Financial Management System from External This is a pilot program. Source • Travel OIG made suggestions to the Agency Travel • Compensation Policy. • FCA Accountability Report • Telecommuting OIG led an effort to initiate the streamlining of the time recording system and the • Budgeted Contract Funds v. Actual Use preparation of a comprehensive staffing plan. • Building Security • Mentoring Program OIG’s performance measures and budget • Service Level Agreements were reviewed and OIG gave preparation was used as a model for unified comments FY 2002 Agency budget preparation linking • Family-friendly initiatives were extended and approved to performance. • Disaster planning • Policy reform on inappropriate behavior and harassment in the workplace 4. Continuous improvement of Customer survey feedback is used to improve products and services. Peer review reports provide an unqualified OIG staff, products and opinion that OIG audit work meets or exceeds internal administration. OIG training ensures the technical proficiency of staff. quality audit standards prescribed by GAO and the PCIE/ECIE. Training classes attended for proficiency: • Association of Government Accountants Leadership Conference Peer review performed of audit operation was (Smith and Dean) successfully completed in FY 2000. • FCA Performance Measures (Ohlstrom, Dean, Smith) • Inspector General Auditor Training Institute (Ohlstrom) Customer survey feedback evidences increased • Governance in the 21st Century (Dean) satisfaction with report practices. • Legal Professionalism (Dean) • Report survey customer feedback was positive with 4.4 average (rating 1 to 5 with 5 the high). Page 3 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 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 4. Continuous improvement of • National White Collar Crime Center (Ohlstrom) • Format and presentation of OIG products OIG staff, products and • Computer Training (all) have been upgraded with technological internal administration. • Legal Issues in Information Technology (Dean) tools and training. (Continued) • OPM-NASA- Leadership for Critical Times (Ohlstrom) • Benchmarking with comparable financial • Problem Solving (all) regulators results in more diversified • Council for Excellence in Government (Dean) benefits package for FCA. OIG implements administrative improvements identified through reviews The Inspector General’s opportunity to facilitate of other Agency programs and through staff involvement with the positive change within the Agency is enhanced by professional community. the quality and credibility of OIG products and • OIG staff members enter into a performance contract with the IG, advice. identifying projects and responsibilities. Similarly, the IG and the Agency Chairman sign a performance contract. OIG staff actively develops ideas for adding • OIG teambuilding is ongoing. value to the Agency and OIG operations. Part • Equipment upgrades allow more professional products to be of OIG performance contract involves produced in-house. OIG welcomes the Agency to use the identifying specific ideas to audit or review in equipment. This has resulted in more professional products and the upcoming year. acquisition of the necessary equipment within the Agency. This reporting period an Administrative • OIG time tracking has been further streamlined. Burden Workgroup continued its leadership • OIG has made a decision to reach “Agreed Upon Actions” in by an OIG staff member and further audits and inspections when possible. Process was further streamlined routine procedures. streamlined. • The Hotline number has gained more visibility by being put on The Agency has expanded work/life programs. the FCA website. OIG also has an independent Internet Hotline account, outside the FCA infrastructure. The Agency now has maxi-flex and a recognized telecommuting program. OIG was asked to prepare a revised leave policy, comparable to other financial regulators. It is being evaluated by Agency management. Page 4 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 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 Investigative reports are timely and presented in an objective and factual Administrative action, convictions or pleas are violations relating to FCA manner. Memoranda are issued to management describing internal obtained for employees and/or contractors found programs and personnel control weaknesses or program deficiencies found during the guilty of wrongdoing. are effectively investigated investigative process with suggestions to prevent and/or detect future and reported. wrongdoing. One referral to the Department of Justice was made. DOJ declined prosecution and the 70% of active cases will be less than two years old (from the date Agency took administrative action. the case is opened). Management actions taken against employees 100% of employee cases without criminal prosecution potential will serve as a deterrent to future wrongdoing. be completed within 1 year from opening the case. FCA internal policies, procedures and controls are Two investigations were open at the beginning of this period. One strengthened to prevent and/or detect future was closed during FY 2001 and one remains open. wrongdoing. A closed investigation resulted in Agency policy clarification and agency-wide training in problem solving. Agency staff has an enhanced knowledge that reported issues will result in action when warranted and inappropriate behavior is not to be tolerated. The average time to complete six preliminary and unsubstantiated allegations was three months. Page 5 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 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 2. FCA employees and Allegations of wrongdoing are received in a timely manner and are Investigations are more successful because they managers recognize their supported by specific information. are initiated in a timelier manner and have better responsibility to immediately . information. report observed or suspected wrongdoing to the FCA employees are more willing to report real or IG. suspected wrongdoing because they trust the competence and fairness of OIG’s investigations. The OIG is notified promptly whenever 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. Advance fee fraud schemes are referred to appropriate law enforcement agencies when FCA employees are solicited. • Agency officials and Summaries of investigations and the resulting administrative or judicial The Chairman and Congress are better informed Congress are kept fully actions taken are incorporated into the Semiannual Report to Congress, about OIG investigations, administrative and and currently informed of along with any disagreements on the actions taken or failure of judicial consequences. problems found in the management to act in a timely and responsible fashion. process of and resulting Public confidence in the integrity of FCA from investigative Findings made during the investigative process concerning the problem at programs and internal operations are heightened. activities. issue or systemic problems are recognized and corrected or mediated by management. Page 6 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 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 Processes are established and documented for identifying and circulating OIG input is part of the decision making process program for reviewing and (as appropriate) relevant documents. in approving or amending legislation, regulations, commenting on proposed circulars and other policy positions. and existing legislation and Legislation is tracked on a daily basis. The PCIE/ECIE Legislation regulations affecting the Committee is active in forwarding interest items. Constructive criticism and creative alternatives Agency and the Inspectors offered in OIG comments improve the quality and General community. Constructive comments on relevant documents are submitted by the usefulness of documents initiated by the Agency. 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 Semiannual Report to Congress. Congress asked OIGs to prepare and submit reports on: 1) Promptness of payment of water and sewage; and 2) Collection of data about individuals who access the Agency internet site. A Congressman asked the FCA OIG to report on whether the Agency was adhering to the Congressional Review Act. Response to a GAO survey involving consolidation of IG offices. OIG noted the original purpose of the legislation creating IGs and pointed out differences in missions, size and structure of other agencies Page 7 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 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 Develop and maintain educational brochures or pamphlets describing Agency employees’ acceptance of and and accept OIG’s role within OIG roles and activities. cooperation with OIG activities is improved FCA and the community at through better understanding. OIG programs and large. Facilitate feedback from Agency employees and refine products and products are improved through feedback from practices based on the feedback to OIG products and educational Agency employees. materials In place of the traditional audit report, Agency OIG policies have been refined and streamlined. Audit follow-up management has been receptive to the quick was merged with the Agency system so that duplication of effort will response reviews and agreed upon action be avoided. techniques. The techniques have been further refined. Information concerning the OIG HOTLINE can be obtained through linkage with the IG Semiannual Report in the FCA database. The OIG at FCA brochure was updated. Separate internet account opened to ensure confidentiality. The account is with an outside vendor and cannot be accessed by FCA administrators. 2. OIG staff provides Time and resources are provided to OIG staff members as an incentive to Projects and activities of adjunct organizations Leadership to organizations contribute to outside organizations by serving on committees and holding offices. such as the AGA, IIA, PCIE/ECIE, CCIG, FLETC, directly contributing to the and IGATI are improved by OIG staff Inspectors General contributions and participation community. 3. OIG staff provides Professional Organizations - staff are active in meetings and OIG partnered with the OIG community and leadership to organizations sessions of PCIE/ECIE and other professional organizations the FBI to investigate aspects of the terrorist directly contributing to the including: Institute of Internal auditors, Association of Government crisis. The investigator took part in evidence Inspectors General Accountants, Council of Counsels, Association of Federal recovery at the Pentagon. community. Investigators, Training Coordinators, International Association of Financial Crime; Executive Women’s Group, and Instructor at Inspectors General Auditor Training Institute. Page 8 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 PERFORMANCE MEASURES AUDIT RESULTS AUDIT AUDITS ARE RISK IS PRODUCTS AUDITS ARE AGENCY NAME RELEVANT ADDRESSED ARE CONSTRUCTIVE ACCEPTS 80% TIMELY Performance OIG Initiated Strategic Plan 10 Months 14 Agreed Upon Accepted all; two Budgeting Actions implemented. FY 2000 Financial Annual Audit Strategic Plan 4 Months No findings. Working on closing issues Statements (Voluntary Management Letter identified. Compliance with CFO Act) Government Legislatively 2 Months No material findings. Information Security mandated Reform Act Review Page 9 of 10 OFFICE OF INSPECTOR GENERAL FY 2001 PERFORMANCE MEASURES INSPECTION RESULTS INSPECTION INSPECTIONS ARE PRODUCTS ARE INSPECTIONS ARE AGENCY NAME RELEVANT TIMELY CONSTRUCTIVE ACCEPTS 80% Affirmative Employment OIG Initiated 2 Months 5 Agreed Upon Accepted all and 1 Program Action Plan Actions implemented. Administrative No recommendations. Functions of the Chief OIG Initiated 2 Months Examiner’s Office, Office of Examination Administrative OIG Initiated 2 Months No recommendations. Functions of the Special Examination and Supervision Division, Office of Examination Page 10 of 10
Published by the Farm Credit Administration, Office of Inspector General on 2002-01-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)