OFFICE OF INSPECTOR GENERAL FY 1999 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 products Audit and inspection reports. FCA programs and operations are more effective. and services that are useful to Details at Attachment 1. OIG and Agency management have confirmation that FCA’s the Board, management and/or network infrastructure is well designed and documented. The the Congress. Audits and inspections are relevant. Audit coverage networking technology is comparable to or better than that of includes all mandated audits and at least 75% of those other IT organizations throughout industry and government. suggested by the Board and management. Regular review of the reliability of remote access to the Agency network has been initiated. Three audits and two inspections were initiated to examine program efficiencies, especially use of Policies were modified to better justify; safeguard and track resources. Any audit specifically requested by a FCA funds spent on specialized FCA positions. Board member was performed. Waste in Agency programs and operations is reduced. Risk is addressed. 100% of OIG audits are performed in high risk/high $ programs and activities and/or are tied to Increased Agency compliance with laws, regulations and the Agency strategic planning goals. internal policies and procedures. All audits were in high-risk programs and/or were tied to Through the partnership concept, the IG and FCA the Agency strategic plan. Focus was on major Agency management: programs and implementation of new programs. 1) Received an unqualified opinion for the Agency’s FY Inspections were utilized for field office reviews. Each 98 financial statements; and product aimed at identifying efficiencies and potential 2) Improved and documented Agency preparation for the cost savings. Year 2000. 3) Improved efficiency through greatly increased the use of credit cards for making micropurchases and essentially all training costs are paid using this Page 1 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 1. Deliver quality audit products method. and services that are useful to 4) All Agency positions were reviewed for proper the Board, management and/or classification of security clearances and the backlog of the Congress (continued) background investigation was addressed. Findings made during audit fieldwork are recognized and The Agency’s stature and reputation is elevated in the eyes of corrected by management prior to drafting of the audit Congress, the Administration, the FCS, FCA employees and report. the public. Management worked with OIG to address findings Jointly, OIG and the Agency are engaged in becoming a during: “premier regulator.” All employees are actively involved in • FCA’s Specialization/Certification Programs achieving this goal. Efforts by the Agency are recognized • FCA’s Financial Statement for FY 98 through the Agency-wide Benchmarking project. Government • Analysis of the FCA IT Infrastructure agencies and corporations were benchmarked in order to • Inspection of Sacramento CA Field Office. adopt the best practices and best processes. All FCA • Inspection of Dallas TX Field Office employees also spent a day or more familiarizing themselves with a Farm Credit institution and agricultural operations Products are timely, i.e. average time to complete audits such as farms or nurseries. and issue draft reports will not exceed 6 months. Feedback from regulated institutions about Agency products All audits were completed in within 4 months. and services rates them consistently above average. The Inspections were completed more rapidly (2 mos. or less) Agency has initiated an insourcing project, examining loans for another Federal agency. Congress has been fully supportive of regulatory initiatives. The public has been provided an electronic mail vehicle to comment on proposed regulations. Page 2 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 1. Deliver quality audit products Audits are constructive. At least 75% of audit products FCA is more effective in carrying out its mission. and services that are useful to contain recommendations to improve Agency operations. the Board, management and/or The OIG audit, FCA’s Specialization/Certification Programs the Congress (continued) 100 % of audits and inspections performed contain resulted in the enhancement of existing processes and making recommendations to improve Agency operations. more effective use of Agency resources expended on specialization programs. The Agency accepts at least 80% of OIG audit recommendations. As a result of a field office inspection, the examination manual was modified and procedures were developed for During this reporting period, management accepted all examination of; Equal Opportunity Employment Programs, (26) recommendations, except for five recommendations Call Reports, Orders of Removal, Suspension, or Prohibition, from the FCA IT Infrastructure report. Management is and for notifying institutions of persons who should be studying these five recommendations. blocked from transactions or employment due to criminal involvement. The Agency actually implements all corrective actions prescribed by management decisions. The OIG is more effective in promoting economy, effectiveness and efficiency within the Agency. 50% of the corrective actions have been implemented. The remaining 50% of those recommendations that have been accepted by management are not yet implemented. However, these corrective actions are for an audit report that was issued in very close proximity to the end of the reporting year. Page 3 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 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 administrative priorities. decisions and actions that are more sound management information and complete and valid at their inception. financial reporting systems and in The IG delivered three (3) advisories to the Chairman streamlining programs and concerning policy issues and administrative priorities. Due to management letters, the policy on organizations. drug free workplace was improved; security OIG performs analysis and provides technical advice to controls over supplies were improved and a management concerning accounting, management systems and backlog of personnel security investigations controls, and performance measures. were addressed. Technical analysis and advice was provided through the The Agency updated a policy on travel and following:: established firm guidance on the radius for • Personnel security review local travel. Management also has • Drug Free Workplace review improved remote access to the network and • Security over supplies has further educated users. • Travel - per diem • Compensation workgroup The Agency updated policies and • FCA Annual Report procedures to insure compliance with the • Computer Connectivity in the field Prompt Payment Act. • Telecommuting Management segregated incompatible duties between the time entry conversion function and the payroll leave audit function. Page 4 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 PERFORMANCE MEASURES AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT The Agency’s flexiplace program has been 2. Provide technical advice and assistance broadened through a telecommuting to Agency officials in developing sound project. management information and financial reporting systems and in streamlining Increase in management requests for advice, programs and organizations. audit work or technical assistance. (continued) On several occasions, the Leadership Team members have requested and received advice and technical assistance. OGC requested and relied on audit workpapers, interviews with FDIC, to accomplish part of their Benchmarking effort. Regularly, Agency management asks OIG staff to look at policies and operating procedures. (Frequent flier upgrades, per diem, and compensation issues). Page 5 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 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 Audit survey feedback was sparse but positive, an average of the PCIE/ECIE. over 4.0 on a scale of 1 to 5 (5 is strongly agrees with survey questions, 1 is strongly disagrees with survey questions). The Peer review is scheduled for FY 2000. 4.0 is down from last report of 4.5. Both times feedback was very limited. A new survey instrument has been developed Customer survey feedback evidences increased and will hopefully attract more response. satisfaction with audit practices. OIG training ensures the technical proficiency of staff. Training classes attended for proficiency: • EEO Professional Development (Burr) • Nat’l. Diversity Symposium (Burr) • Legislative Issues and Congressional Oversight Forum (Dean) • 1999 Economic Crime Summit (Ohlstrom) • Writing Successful Audit Reports (Lewandrowski) • Auditing Performance Outcomes (Lewandrowski) • AABPA Symposium (Lewandrowski) • National Intergovernmental Audit Forum (Stoehr) • Lessons in Leadership Series (Stoehr) • Relations with Government Agencies (Stoehr) • Federal Privatization (Stoehr) • Mediation Skills and Processes (Dean) Page 6 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 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 audits of other Agency programs and through staff positive change within the Agency is enhanced (continued) involvement with the professional community. by the quality and credibility of OIG products • OIG staff members enter into a performance contract with and advice. the IG, identifying projects and responsibilities. Similarly, the IG and the Agency Chairman sign a OIG staff actively develops ideas for adding performance contract. Other Agency components are value to the Agency and OIG operations. Part of initiating this practice. OIG performance contract involves identifying • OIG teambuilding is ongoing. specific ideas to audit or review in the upcoming • Equipment upgrades allow more professional products to year. be produced in-house. OIG welcomes the Agency to use the equipment. This has resulted in more professional The Agency Benchmarking effort afforded OIG products and acquisition of the necessary equipment an opportunity to tailor and try successful within the Agency. practices used at Freddie Mac and Fannie Mae. • Time tracking has been streamlined. . • OIG has made a decision to reach “Agreed Upon This reporting period an Administrative Burden Decisions” in audits and inspections when possible. This Workgroup was led by an OIG staff member to is a technique used successfully at Freddie Mac. Our streamline routine procedures. The group was benchmarking effort led us in this direction. OIG will also highly successful in eliminating unnecessary and streamline the customer survey instrument and try the burdensome steps. method used by Fannie Mae to solicit audit topics. • The Hotline number has gained more visibility by being The IG participates in an Agency project to put on the internet and on the FCA website. develop ideas concerning Agency compensation. Coordinated pilot project on telecommuting. Page 7 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 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 Administrative action, convictions or pleas are relating to FCA programs and personnel objective and factual manner. Memoranda are issued to obtained for employees and/or contractors found are effectively investigated and management describing internal control weaknesses or guilty of wrongdoing. reported. program deficiencies found during the investigative process with suggestions to prevent and/or detect future Management actions taken against employees wrongdoing. serve as a deterrent to future wrongdoing. One investigation was open at the beginning of this period FCA internal policies, procedures and controls are and three more were opened during FY 99. One strengthened to prevent and/or detect future investigation was closed during this period (13 months from wrongdoing. date of opening until closing). This investigation prompted 3 management letters; however, the underlying crime Management strengthened procedures on security remains unsolved. clearances and updating security reviews. To ensure objectivity, OIG entered into a memorandum of Management more actively oversees FECA claims understanding with another IG to perform an investigation by employees. that potentially involved a conflict of interest. OIG also worked with investigators having identified expertise in a matter under investigation. 3. FCA employees and managers Allegations of wrongdoing are received in a timely manner Investigations are more successful because they are recognize their responsibility to and are supported by specific information. initiated in a timelier manner and have better immediately report observed or information. suspected wrongdoing to the IG. FCA employees are more willing to report real or suspected wrongdoing because they trust the Page 8 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 OIG PERFORMANCE MEASURES INVESTIGATIONS PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT competence and fairness of OIG’s investigations. 2. FCA employees and managers The OIG is notified promptly whenever recognize their responsibility to wrongdoing is observed or suspected in FCA immediately report observed or programs. Various offices have sought guidance suspected wrongdoing to the IG. to avoid problems or to resolve potential problems (continued) before there is a need for investigation. When there has been conflicting advice by authorities, OIG is consulted as a competent source to resolve the conflict. 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 or judicial actions taken are incorporated into the about OIG investigations, administrative and problems found in the process of and Semiannual Report to Congress, along with any judicial consequences. resulting from investigative activities. disagreements on the 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. Page 9 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 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 logging and circulating (as appropriate) relevant documents. approving or amending legislation, regulations, and existing legislation and regulations circulars and other policy positions. effecting the Agency and the Inspectors Legislation is tracked on a daily basis. Counsel is a General community. member of PCIE Legislation Committee. Constructive criticism and creative alternatives offered in OIG comments improve the quality and Constructive comments on relevant documents are usefulness of documents initiated by the Agency. submitted by the deadlines requested by the office, Agency or staff circulating comments. FCA Board and management are informed about the status of new or pending legislation or Comments were submitted on time. regulations initiated externally. Document review activity is summarized for inclusion in the OIG notified Agency management of the reporting Semiannual Report to Congress. requirements under Federal Activities Inventory Reform. Suggestions and responses to legislation proposed to amend the IG Act were developed and submitted to OMB and Congressional staffs. Counsel and a workgroup included language in semiannual report regarding IG independence issues. Page 10 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 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 the follow-up was merged with the Agency system so that quick response reviews and agreed upon duplication of effort will be avoided. action, techniques OIG is or is planning to use more often. Information concerning the OIG HOTLINE can be obtained through linkage with the IG Semiannual Report in the FCA database. 2. OIG staff provides leadership to Time and resources are provided to OIG staff members as Projects and activities of adjunct organizations directly contributing to the an incentive to contribute to professional organizations by organizations such as the AGA, IIA, Inspectors General community. serving on committees and holding offices. PCIE/ECIE, CCIG, FLETC, and IGATI are improved by OIG staff contributions and participation. Page 11 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 PERFORMANCE MEASURES OUTREACH PROGRAM PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT 2. OIG staff provides leadership to Professional Organizations - staff are active in meetings organizations directly contributing to the and sessions of PCIE/ECIE and other professional IG facilitated ECIE’s group response to Inspectors General community. (continued) organizations including: Institute of Internal auditors, proposed amendments to the IG Act. The IG Association of Government Accountants, Council of acts in an advisory capacity to the leadership Counsels, Association of Federal Investigators, Training of the ECIE. The IG also participated in Coordinators, Internal Association of Credit Card commenting on proposed AICPA rule change. Investigators, and Instructor at Inspector Generals Counsel received award from CCIG for Auditor Training Institute. training and teaching within the IG community. OIG Networking opportunities have resulted in an expanded consideration of FCA ideas and practices by community contacts and experts. The Inspectors General community is more credible and effective. OIG staff will participate in projects that will contribute 3. OIG staff contributes to special projects for to achieving the vision of a better Agency and Management practices at the Agency are improving the Agency, the OIG community government. improved by OIG staff participation in FCA and the government. • FCA Leadership Team special projects. • FCA EEO Advisory Committee . • FCA Annual Report Task Force FCA programs and operations are more • Benchmarking Workgroup effective and efficient. • Strategic Message Workgroup Page 12 of 14 OFFICE OF INSPECTOR GENERAL FY 1999 PERFORMANCE MEASURES OUTREACH PROGRAM PERFORMANCE GOALS OUTPUT/CRITERIA OUTCOME/IMPACT • Employee Council 3. OIG staff contributes to special projects for • Farm Credit Club OIG involvement with IG community improving the Agency, the OIG community facilitates an efficient way to get answers or and the government. (continued) • Mentoring Program feedback from many different contacts and networks. • New Employee Orientation • Administrative Burden Reduction Workgroup • Federal Women’s Program Workgroup Page 13 of 14 Attachment 1 AUDIT RESULTS AUDIT AUDITS ARE RISK IS PRODUCTS ARE AUDITS ARE AGENCY NAME RELEVANT ADDRESSED TIMELY CONSTRUCTIVE ACCEPTS 80% FCA’s OIG Initiated Strategic Plan 4 Months 5 Recommendations Accepted and Specialization/Certification Implemented All Programs FY 98 Financial Statements Annual Audit Strategic Plan 4 Months 2 Recommendations Accepted and (Voluntary Implemented all Compliance with CFO Act) Analysis of the FCA IT OIG Initiated Strategic Plan 4 Months 20 Recommendations Accepted 15 Infrastructure Implemented 2 INSPECTION RESULTS INSPECTION INSPECTIONS ARE PRODUCTS ARE INSPECTIONS ARE AGENCY NAME RELEVANT TIMELY CONSTRUCTIVE ACCEPTS 80% Sacramento Field Office OIG Initiated 2 Months 1 Recommendation Accepted and Implemented all Dallas Field Office OIG Initiated 1 Month 3 Recommendations Accepted and Implemented all Page 14 of 14
Published by the Farm Credit Administration, Office of Inspector General on 2000-01-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)