Office of Inspector General FISCAL YEAR 2003 PERFORMANCE MEASURES July 2004 TABLE OF CONTENTS Executive Summary ............................................................................................................ Page 1 Audits and Inspections........................................................................................................ Page 2 Investigations ...................................................................................................................... Page 5 Legislative and Regulatory Review..................................................................................... Page 6 Outreach ............................................................................................................................. Page 7 Appendix 1 Farm Credit Administration Office of Inspector General FY 2003 Performance Measures EXECUTIVE SUMMARY The Office of Inspector General (OIG) of the Farm Credit Administration (FCA or Agency) met or surpassed its target or goals for performance in Fiscal Year (FY) 2003. Goals pertain to: audits and inspections, technical assistance to agency officials and management, continuous improvement of the OIG staff, investigation of administrative and criminal violations, reviewing and commenting on legislation and regulations affecting the agency and the IG community, and outreach. During this reporting period the OIG issued a program audit involving the Loan Account Reporting System and the audit of the FY 2002 Financial Statements. There were no material findings during the audit of the financial statement or the review of the information security. An inspection involving FCA Board Policies was issued, as well as a review of the Federal Information Security Management Act (FISMA), Electronic Government (e-Government) at the agency, and management advisories and several management informational memoranda. These products addressed risk to the agency. All products were timely and constructive. Over 80% of the products contained recommendations to improve agency operations. The OIG collects data from a survey that is used by the agency for an ongoing performance measurement in the areas of safety and soundness of financial institution examination. OIG initiated a transition from delivering the survey and collecting the results on paper to electronic delivery and receipt of survey. Audit survey feedback improved slightly from last year and we are attempting to get feedback on other products. An investigation led to a management advisory aimed at improving administration of leave. The FCA Board also asked for a briefing on continuity of operations following OIG’s issuance of a thorough checklist and advisory on that topic. A measure of our success is contributing to the agency’s continuous adaptation of sound business practices and basic integrity. We are hopeful that the agency will continue to show firm commitment to decision-making and follow-up to improve operations and programs. The OIG welcomes comments and suggestions related to performance in areas to address. Farm Credit Administration Office of Inspector General FY 2003 Performance Measures AUDITS AND INSPECTIONS Objective—Audit and evaluate the Agency’s programs and operations to promote economy, efficiency and effectiveness. Performance Goal 1—Deliver quality audit and inspection products and services that are useful to the Board. OUTPUT/CRITERIA OUTCOME/IMPACT Audits and inspections are relevant. Audit coverage includes all FCA programs and operations are more effective. Waste in agency mandated audits and at least 75% of those suggested by the Board and programs and operations is reduced. Better business practices are management. Risk is addressed. 100% of the OIG audits are initiated. performed in high risk/high dollar programs and activities and/or are tied FCA continues to improve and develop mechanisms to streamline to the agency strategic planning goals. budget data to products and services. OIG contracted with a CPA firm to review FCA’s mission critical Unqualified opinion for agency financial statements. Security of system under the Federal Information Security Management Act information validated through FISMA review. (FISMA) and by auditing FCA’s financial statements. Reimbursement formula for services is upgraded. FCA reports to Findings made during audit fieldwork are recognized and corrected by Office of Management and Budget (OMB) on progress of updating management prior to drafting of the audit or inspection report. continuity of operations and certification of information security Products are timely, i.e., average time to complete audits and issue draft systems. reports will not exceed six months. Agency moved ahead in developing more comprehensive continuity Audits are constructive. At least 75% of audit products contain of operations plan following checklist and guidance issued by the recommendations to improve agency operations. The agency accepts OIG. at least 80% of the OIG audit recommendations. The agency actually Agency has utilized factors identified by the OIG to market FCA as implements all corrective actions prescribed by management decisions. an outstanding place to work and to attract and retain valuable 100% of audit products contain recommendations to improve employees. agency operations. FCA is more effective in carrying out its mission. The agency accepted 90% of audit recommendations. Plans are prepared to redesign the Loan Account Reporting All audits were performed within six month. System to be more comprehensive and useful for more mission- related purposes. See Appendix 1 for details of audits and inspections. An inspection of FCA Board Policies issued on September 15, 2003, awaits management decision on three recommendations. This inspection was completed in less than three months. Farm Credit Administration Office of Inspector General FY 2003 Performance Measures AUDITS AND INSPECTIONS Objective—Audit and evaluate the Agency’s programs and operations to promote economy, efficiency and effectiveness. Performance Goal 2—Provide technical advice and assistance to agency official in developing sound management information and financial reporting systems and in streamlining programs and organizations. OUTPUT/CRITERIA OUTCOME/IMPACT Assist the agency in building continuous, meaningful measures with OIG input and advice contributes to agency decisions and actions that are outcomes important to their stakeholders. more complete and valid at their inception. The IG advises the Chairman concerning policy direction or Upgrade of recording equipment in the Board room occurred, in administrative priorities. part, due to OIG interest in issue involving the taping of a closed session. An ongoing survey conducted by the OIG to preserve anonymity and integrity, involves the effectiveness of the examination The agency is working on updating the COOP. The CIO used the function. Results are benchmarked from year to year and are advisory rather than contract for a review of their emergency used by the agency for ongoing performance measurement. preparedness which saved the agency funds. The IG advised the Chairman of the FCA that it would be Increase in management request for advice, audit work or technical prudent to link FCA’s Strategic Plan with the President’s assistance. Management Agenda. Regularly management requests the OIG to validate changes in An advisory was issued on March 31, 2003 on the Contingency business practices. The OIG is a laboratory of change, a model for of Operation Plans (COOP). This advisory was also presented best practices. The agency has revised performance evaluation to the Board at a regular Board meeting. The advisory provided plans on those used by the OIG. The OIG’s budget preparation, a current status of FCA’s emergency preparedness and a with linkage to performance measures was used as a model for the checklist of areas that need to be addressed. agency. The OIG performs analysis and provides technical advice to The OIG advisory on the COOP resulted in a Board presentation management concerning accounting, management systems and and OIG expertise in guiding the agency effort tot draft a more controls, and performance measures. comprehensive plan. An advisory on new employee processing was issued on May The agency provided education on certain leave matters to 21, 2003, suggesting reducing redundancy and streamlining. management as a result of advice from the OIG stemming from investigative matters. The IG identifies management’s top challenges in the semiannual reports, the agency’s performance report, and the The OIG advised the agency on need for more rigorous controls on audit of the financial statements. fuel cards for agency cards. Farm Credit Administration Office of Inspector General FY 2003 Performance Measures AUDITS AND INSPECTIONS Objective—Audit and evaluate the Agency’s programs and operations to promote economy, efficiency and effectiveness. Performance Goal 3—Continuous improvement of the OIG staff, products and internal administration. Quality is highly valued. OUTPUT/CRITERIA OUTCOME/IMPACT Customer survey feedback is used to improve products and services. Peer review reports provide an unqualified opinion that the OIG audit work meets or exceeds quality audit standards prescribed by GAO and the Audit feedback averaged a rating of 4.5 (5 being the highest President’s Council on Integrity and Efficiency/Executive Council on grade 1 being the lowest). The OIG team is developing Integrity and Efficiency (PCIE/ECIE). feedback instruments for inspections and other reviews as well. Peer review of the OIG audit component was last conducted in OIG training ensures the technical proficiency of staff. 2000. A peer review is scheduled in 2003. The OIG team has taken technical courses to gain proficiencies: The OIG participated in a pilot peer review of the investigation Qualitative Application in Administrative Decision Making, function. FISMA Update, Economic Crime Summit, IG Public Corruption and Integrity Investigation, Government Purchase Cards, and The OIG conducted a peer review of the National Labor Relations Introductory to Auditor Training. In addition PCIE/ECIE training Board OIG’s audit operation. sessions and legal forums are attended. The OIG team also Customer survey feedback evidences increased satisfaction with report stays current in FCA operations training courses and strategic practices. management initiatives. Audit survey feedback was positive. On a scale of 1 to 5 (5 being OIG implements administrative improvements identified through reviews the highest grade) survey results were 4.5. FY 2001 rating was of the agency programs and through staff involvement with the 4.4. professional community. The IG’s opportunity to facilitate positive change within the agency is enhanced by the quality and credibility of OIG products and advice. Farm Credit Administration Office of Inspector General FY 2003 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 Goal 1—Administrative and criminal violations relating to FCA programs and personnel are effectively investigated and reported. Agency officials and the Congress are information of problems. OUTPUT/CRITERIA OUTCOME/IMPACT Investigative reports are timely and presented in an objective and factual Administrative action, convictions or pleas are obtained for employees manner. Memoranda are issued to management describing internal and/or contractors found guilty of wrongdoing. control weaknesses or program deficiencies found during the investigative process with suggestions to prevent and/or detect future Management actions taken against employees serve as deterrent to future wrongdoing. wrongdoing. Three investigations were open at the beginning of FY 2003; FCA internal policies, procedures, and controls are strengthened to prevent four additional investigations were opened during the year. Two and/or detect future wrongdoing. were unsubstantiated and closed. One investigation, involving allegations concerning leave was substantiated and Public confidence in the integrity of FCA programs and internal operations management was advised to make administrative changes to are heightened. existing practices. Investigations took from one to three months. Three substantiated investigations were completed in less than Investigations involving purchase and travel card abuses led to a 3 months. Two unsubstantiated took approximately three and a tightening of controls over the credit cards. Also included half months to complete. One investigation was proactive and we did a threat assessment to ensure agency employee safety. OIG published newsletter article on appropriate handling of mail. Farm Credit Administration Office of Inspector General FY 2003 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 Goal 2—FCA employees and managers recognize their responsibility to immediately report observed or suspected wrongdoing to the OIG.. OUTPUT/CRITERIA OUTCOME/IMPACT Allegations of wrongdoing are received in a timely manner and are Investigations are more successful because they are initiated in a timely supported by specific information. manner and have better information. Some anonymous complaints are vague, lacking sufficient FCA employees are more willing to report real or suspected wrongdoing information to pursue an investigation. As a result, the OIG is because they trust the competence and fairness of OIG’s investigations. developing ways to obtain further information. OIG receives allegations through the hotline mechanisms and through anonymous correspondence. Agency management notifies the OIG team when anonymous allegations are sent to them. Farm Credit Administration Office of Inspector General FY 2003 Performance Measures LEGISLATIVE AND REGULATORY REVIEW Objective—Review and make recommendations regarding existing and proposed legislation and regulations relating to Agency programs and operations and the Inspectors General Community. Performance Goal 1—Maintain an effective program for reviewing and commenting on proposed and existing legislation and regulations affecting the agency and the IG community. OUTPUT/CRITERIA OUTCOME/IMPACT Processes are established and documented for identifying and OIG input is part of the decision making process in approving or amending circulating (as appropriate) relevant documents. legislation, regulations, circulars and other policy positions. Legislation is tracked on a daily basis. The PCIE/ECIE OIG is attempting to become more proactive in tracking projects. legislation committee is active in forwarding interest items. Constructive criticism and creative alternatives offered in OIG comments Constructive comments on relevant documents are submitted by the improve the quality and usefulness of documents initiated by the agency. deadlines requested by the office, agency, or staff circulating comments. The agency seeks public input into policy and regulatory efforts OIG is updating Privacy Act Routine uses in order to participate concerning Loan Syndications and Preferred Stock, in part, due to in IG community quality assurance reviews of the inspection results of OIG survey conducted on Regulation Development. programs. FCA Board and management are informed about the status of new or Established Quality Information Guidelines for OIG. pending legislation or regulations initiated externally. ECIE IGs continue to support a legislative effort to have the Program Fraud Civil Remedies Act made applicable to a broader (more than cabinet level) range of Agencies. The IG Community celebrated the 25th Anniversary of the IG Act. The President recognized the contributions of the IGs. OIG sponsored an open house and prepared a history and timeline to commemorate the IG at FCA. Farm Credit Administration Office of Inspector General FY 2003 Performance Measures OUTREACH 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 Goal 1—Agency personnel understand and accept OIG’s role within the FCA and the community at large. OUTPUT/CRITERIA OUTCOME/IMPACT Develop and maintain educational brochures or pamphlets describing Agency employees’ acceptance of and cooperation with OIG activities is OIG roles and activities. improved through better understanding. OIG programs and products are improved through feedback from Agency employees. Facilitate feedback from agency employees and refine products and practices based on the feedback to OIG products and educational An OIG summer intern prepared a report and gave a power point materials. presentation on e-government. There were several suggestions. The agency was receptive comments to the suggestions and has expanded electronic operations at FCA by: adding more content to the website, initiating efforts to make it more user friendly, collecting survey information electronically, spearheading pilot projects to enable employee communications and confidential reporting. At an open house celebrating the 25th anniversary of the IG Act, agency employees took an interest in reading and viewing the history of the IG at FCA. Farm Credit Administration Office of Inspector General FY 2003 Performance Measures OUTREACH 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 Goal 2—OIG staff provides leadership to organizations directly contributing to the IG community. OUTPUT/CRITERIA OUTCOME/IMPACT Time and resources are provided to OIG staff members as an incentive Projects and activities of adjunct organizations such as the AGA, IIA, to contribute to outside organizations by serving on committees and PCIE/ECIE, CCIG, FLETC, and IGATI are improved by OIG staff holding offices. contributions and participation. OIG staff actively participated in the Executive Committee on Participating in the PCIE working group on revision to peer review guidance Integrity and Efficiency (ECIE), Association of Government for audits. Providing a small agency perspective. Accountants (AGA), Council of Counsels (CCIG) (co-chair), International Association of Financial Crime, Instructor at the Inspectors General Auditor Training Institute (IGATI), GPRA Roundtable, Employee Council, Council for Excellence in Government, Senior Staff, Accountability Report Workgroup, and Federal Women’s Program Committee. Performance Goal 3—OIG staff provides leadership to organizations directly contributing to the IG community, the agency and the Federal government. OUTPUT/CRITERIA OUTCOME/IMPACT OIG networking opportunities have resulted in an expanded FCA programs and operations are more effective and efficient. consideration of FCA ideas and practices by community contacts and experts. OIG has shared telecommuting policies, OIG has a goal to help the Agency build continuous, better, hotline procedures, performance measures and performance concrete measures with outcomes important to its stakeholders. contracts and evaluation methods. Likewise, FCA benefits from the opportunity to benchmark practices in other Agencies OIG assisted the Agency in improving electronic communication by making suggestions to improve the web site and consider more electronic transactions with regulated entities and the public. Mentoring and coaching 2 summer interns through meaningful projects. Farm Credit Administration Office of Inspector General FY 2003 Performance Measures APPENDIX 1 AUDIT RESULTS AUDITS ARE AUDIT NAME AUDITS ARE RELEVANT RISK IS ADDRESSED PRODUCTS ARE TIMELY AGENCY ACCEPTS 80% CONSTRUCTIVE Loan Account OIG initiated Strategic Plan 6 Months 9 Agreed Upon Accepted all; 6 Reporting System Actions implemented FY 2003 Financial Annual Audit Strategic Plan 5 Months No findings, Working on completing Statements (Voluntary Compliance Management Letter issues from with CFO Act) Management Letter. INSPECTIONS INSPECTIONS ARE INSPECTION NAME INSPECTIONS ARE RELEVANT PRODUCTS ARE TIMELY AGENCY ACCEPTS 80% CONSTRUCTIVE FCA Board Policies OIG initiated 1 Month 3 Recommendations REVIEWS Federal Information Security Management Act Review—Legislatively mandated. Performed in 2 months. No material findings. Reports to OMB as a follow-up. E-Government at FCA—OIG initiated. Suggestion made.
Published by the Farm Credit Administration, Office of Inspector General on 2004-07-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)