oversight

FYs 2014-2015 Performance Report

Published by the Farm Credit Administration, Office of Inspector General on 2016-01-20.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

Farm Credit Administration                                      Office of Inspector General
                                                                1501 Farm Credit Drive
                                                                McLean, Virginia 22102-5090




January 20, 2016

The Honorable Kenneth A. Spearman, Board Chairman
The Honorable Dallas P. Tonsager, Board Member
The Honorable Jeffery S. Hall, Board Member
Farm Credit Administration
1501 Farm Credit Drive
McLean, VA 22102-5090

Dear Board Chairman Spearman and FCA Board Members Tonsager and Hall:

The Government Performance and Results Act of 1993 (GPRA) and GPRA Modernization Act
of 2010 encourage organizations to manage for results and hold managers accountable for
executing programs to achieve desired outcomes. The enclosed report documents the
outcomes or impact of the products, services, and leadership of the Office of Inspector General
(OIG) during fiscal years 2014 and 2015.

The OIG continues to work to enhance its role as an agent for positive change within the Farm
Credit Administration (FCA or Agency). The results reflect the OIG’s commitment to assist in
achieving the Agency’s mission of ensuring a safe and sound Farm Credit System that provides
a dependable source of credit to farmers and ranchers.

We look forward to continuing to work with you to ensure FCA remains effective in its efforts to
accomplish its mission. I welcome your comments on ways to improve OIG services that help
you achieve your goals for FCA’s operations.

If you have any questions, please call me at extension 4036 or 4030.

Respectfully,



Elizabeth M. Dean
Inspector General

Enclosure
                                                         Table of Contents


Executive Summary ................................................................................................................... 1
Background................................................................................................................................ 2
Audits, Inspections, and Evaluative Products ............................................................................. 3
Investigations ............................................................................................................................. 8
Legislative and Regulatory Review ...........................................................................................10
Outreach ...................................................................................................................................11
Appendix ...................................................................................................................................13
Executive Summary



     The Office of Inspector General (OIG) of the Farm Credit Administration (FCA or Agency) met or
     exceeded performance goals in fiscal years (FY) 2014 and 2015. Goals pertained to:
        ·   audits, inspections, and evaluative products;
        ·   investigation of administrative and criminal violations;
        ·   reviewing and commenting on legislation and regulations affecting the Agency and the
            Inspector General (IG) community; and
        ·   outreach.
     OIG Reports

     The OIG products listed below were timely and constructive while accommodating the priorities
     of the Agency. Each product addressed risk to the Agency. Many of these products contained
     recommendations to improve Agency operations.
     During the reporting period the OIG issued:
        ·   Nine Audits: Seven program audits and two financial statement audits
        ·   Two Federal Information Security Management Act (FISMA) evaluations
        ·   Five Management Advisories
        ·   Eight quarterly and two annual summary survey reports of the Farm Credit System
        ·   Six investigative reports
     OIG Contributions to the Federal Inspectors General Community

     The IG Reform Act of 2008 established the Council of the Inspectors General on Integrity and
     Efficiency (CIGIE) as an independent executive branch entity to address integrity, economy, and
     effectiveness issues that transcend individual government agencies and to increase the
     professionalism and effectiveness of the OIG workforce. The CIGIE is currently composed of 73
     federal IGs and 6 other federal leaders.
        ·   The FCA IG served in various CIGIE capacities, including membership on CIGIE’s
            Legislation Committee, Inspection and Evaluation Committee, and the Small OIGs Work
            Group. In January 2015, the IG was also appointed to the CIGIE Executive Council as
            an At-Large Member.
        ·   OIG staff members participated in CIGIE activities in various leadership roles, including:
               o a Senior Auditor served as an adjunct instructor for CIGIE and participated on the
                   CIGIE Inspection and Evaluation Roundtable,
               o the Senior Information Technology (IT) Auditor participated on the IT
                   Subcommittee of the Federal Audit Executive Council and assisted CIGIE with
                   developing their information security program, and
               o the IG Counsel served as Vice Chair to the Council of Counsels to the Inspectors
                   General.
     A measure of the OIG’s success is reflected in the contribution to the Agency’s continuous
     utilization of sound business practices and basic integrity. We are confident the Agency will
     continue to show firm commitment to the independence of the OIG and to follow-up on OIG
     report findings, conclusions, and recommendations to improve operations and programs.




                                                     1
Background
     The OIG welcomes comments and suggestions related to performance measurements.




     The mission of the OIG is to have our work products and presence promote economy,
     efficiency, and integrity in Agency operations. To accomplish that mission, we have four overall
     objectives:




                                          OIG OBJECTIVES

                       1. Audit and evaluate the Agency’s
                          programs and operations to promote
                          economy, efficiency, and effectiveness.
                       2. Investigate observed, alleged, or
                          suspected wrongdoing to prevent and
                          detect fraud, waste, abuse, and
                          mismanagement in Agency programs and
                          operations.
                       3. Review and make recommendations, as
                          necessary, regarding existing and
                          proposed legislation and regulations
                          relating to Agency programs and
                          operations and the Inspectors General
                          community.
                       4.   Work with the Agency head (FCA Board)
                            and Congress to improve program
                            management, and with the Inspectors
                            General community and other related
                            organizations to address government-
                            wide issues.




                                                     2
Audits, Inspections, and Evaluative Products
Objective – Audit and evaluate the Agency’s programs and operations to promote economy, efficiency, and effectiveness.




                                                                      OUTCOME / IMPACT
                                         The OIG performed or supervised audits, inspections, and evaluations of mission
               Performance Goal 1        critical operational areas. As a result of our audit and evaluation work, FCA
                                         programs and operations are more effective, waste in Agency programs and
           Deliver quality audit,        operations is reduced, and better business practices are initiated.
           inspection, and evaluative
           products and services            ·   Commissioning Program: Multiple improvements are being implemented
                                                as a result of our audit of FCA’s Commissioning Program. The Agency will
           that are useful to the FCA           begin identifying and tracking the cost to commission an examiner. This
           Board, management, and               information will inform cost-effective decision-making. OE will also use
           the Congress.                        cost information to analyze its testing structure and the consolidation of
                                                assessment milestones. Other improvements encompassed contracting,
           Performance Measures                 staffing, retention, and feedback mechanisms.

           Ø    Audits, inspections,        ·   Special Supervision and Enforcement Processes: The Office of
                and evaluations are             Examination (OE) updated and provided training to Associate Examiners
                relevant. Audit                 on the special supervision and enforcement process. OE also initiated
                coverage includes all           training on the criminal referral process, reporting by institutions and by
                mandated audits and             the FCA when there is a reporting void. OE is in the process of defining a
                at least 75 percent of          program so that commissioned examiners can be readied to fulfill
                those suggested by              supervision and enforcement roles as workforce changes occur. In
                the Board and                   response to our audit, OE implemented/updated the following directives:
                management.                          o Normal Supervision Procedures,
                                                     o Special Supervision Procedures, and
           Ø    Risk is addressed.                   o Enforcement Action Procedures.
                One hundred percent         ·   Mobile Device Cost Controls: As a result of the audit of Mobile Device
                of the OIG audits are           Cost Controls, FCA reduced the cost of monthly wireless communication
                performed in high               expenses and initiated reviews of data usage on mobile devices.
                risk/high dollar
                programs and                ·   Training and Conference Expenses: The Agency revised processes in
                activities and/or are           response to our audit of training and conference expenses. Policies and
                tied to the Agency              procedures, control processes, and record retention were addressed.
                strategic planning              Specifically, OMS increased controls in the approval process for higher
                goals.                          cost training.
                                            ·   Personnel Security and Suitability Program: The Agency had made
                                                strides in improving its Personnel Security and Suitability Program.
                                                Additional steps identified in our audit will improve controls and
                                                compliance with requirements. Designation of an Alternate Personnel
                                                Security Officer is being finalized, and this individual will participate in
                                                internal control processes.
                                            ·   Purchase Card Program: The Office of Management Services (OMS)
                                                provided education to cardholders and distributed a template for
                                                acceptable standard agency buys in response to our audit. OMS also
                                                documented the justification for cardholders with higher limits and
                                                exceptions to current processes.
                                            ·   Travel Card Program: OMS provided additional education to cardholders
                                                on agency policies and implemented new processes to distribute quarterly
                                                activity reports and review open travel card accounts. OMS also updated
                                                the travel card policies and procedures and the Charge Card Management
                                                Plan.

                                                            3
Audits, Inspections, and Evaluative Products
Objective – Audit and evaluate the Agency’s programs and operations to promote economy, efficiency, and effectiveness.




                                                                       OUTCOME / IMPACT
              Performance Goal 1
                                           The Agency continues to receive unmodified opinions on the financial
          Deliver quality audit,           statements.
          inspection, and evaluative       Draft reports for audits and evaluations were issued, on average, in 6 months
          products and services            or less. The Agency consistently provided timely responses to our reports.
          that are useful to the FCA
          Board, management, and           During the two-year reporting period, our nine audits and two FISMA
                                           evaluations resulted in 37 agreed-upon actions. At the close of FY 2015, 23
          the Congress.
                                           agreed-upon actions were closed and 14 remained open.
           Performance Measures            Almost all of our audits and evaluations contained action items, and 100
                 Continued                 percent of the recommendations to improve Agency operations were accepted
                                           as agreed-upon actions.
          Ø    Products are timely,
               i.e., average time to       Management’s attention to resolving open OIG agreed-upon actions continues
               complete audits and         to be diligent, and, in the majority of instances, resolution occurs within 6 to 12
               issue draft reports         months.
               will not exceed 6
               months.

          Ø    Audits are                  See Appendix (page 13) for details of audits and evaluations.
               constructive. Audit
               products contain
               recommendations or
               agreed-upon actions
               to improve Agency
               operations, as
               necessary. The
               Agency accepts at
               least 90 percent of
               the OIG audit
               recommendations.




                                                             4
Audits, Inspections, and Evaluative Products
Objective – Audit and evaluate the Agency’s programs and operations to promote economy, efficiency, and effectiveness.




                                                                     OUTCOME / IMPACT
              Performance Goal 2          The OIG, through its audit, inspection, and evaluative products, provides the
                                          FCA Board and management with recommendations to strengthen Agency
          Provide technical advice        operations.
          and assistance to Agency
                                              ·   The IG identified management’s top challenges in the Agency’s
          officials in developing
                                                  Performance and Accountability Report.
          sound management
          information and financial           ·   An independent public accounting firm assessed the Agency’s
          reporting systems and in                accounting and financial reporting each year, including controls and
          streamlining programs                   compliance with laws and regulations. Results of the audit were
                                                  conveyed to the FCA Board and to the Chief Financial Officer. The
          and operations.
                                                  Agency continues to receive unmodified opinions on its financial
                                                  statements.
          Performance Measures
                                              ·   The OIG’s Senior Information Technology (IT) Auditor assessed the
          Ø    The IG engages in                  Agency’s compliance with FISMA. Recommendations were conveyed
               discussion with the                to the FCA Board, the Chief Information Officer, and the Director of
               FCA Board on                       OMS.
               matters of policy
               direction or               The OIG’s analyses, input, and advice inform Agency officials and decision-
               administrative             making processes. This reporting period, the OIG provided technical
               priorities.                perspective on various aspects of Agency operations.
                                              ·   The OIG issued a management advisory recommending the Agency
                                                  evaluate the use of suspension and debarment mechanisms to protect
                                                  the government’s interest through procurements. In response, the
                                                  Agency issued new policies on suspension and debarment.
                                              ·   The Agency’s interest reserve was the focus of another management
                                                  advisory issued this reporting period. The OIG suggested that the
                                                  Agency consider the interest reserve strategy, and a determination
                                                  was made to reevaluate interest reserve strategies annually.
                                              ·   A management advisory proposed consideration of Inspector General
                                                  oversight for the Farm Credit System Insurance Corporation.
                                              ·   The OIG issued a management advisory on Federal Records Act
                                                  amendments that addressed personal emails and text messages as
                                                  federal records. The Agency’s Information Resources Management
                                                  Operations Committee discussed the impact of these changes and
                                                  guidance was issued Agency-wide to implement changes in the law.
                                              ·   In light of a new FCA 401(k) plan, we issued a management advisory
                                                  on the FCA Board’s participation in the plan, recommending a
                                                  complete legal analysis be conducted.
                                          Oftentimes focus on issues raised in OIG audits and reviews results in
                                          thoughtful consideration and change to Agency operations. For example, as a
                                          result of our audit, the Agency suspended its student loan repayment program
                                          after finding it was not meeting intended goals. In 2015, the Board approved a
                                          new student loan repayment program for those employed at the Agency for at
                                          least four years to promote recruitment and retention initiatives.


                                                            5
Audits, Inspections, and Evaluative Products
Objective – Audit and evaluate the Agency’s programs and operations to promote economy, efficiency, and effectiveness.




                                                                      OUTCOME / IMPACT
            Performance Goal 2
                                           Since 1995, the OIG has surveyed the Farm Credit System (FCS or System)
                                           on the quality and effectiveness of the Agency’s examination function and
          Provide technical advice
                                           examiners. The OIG issues a quarterly report and, at the end of each fiscal
          and assistance to Agency         year, a summary report on the survey results to the Chief Examiner and the
          officials in developing          FCA Board. Respondents rate eight statements regarding examination
          sound management                 activities, communications and FCA regulations and guidance. Respondents
          information and financial        have the opportunity to discuss the aspects of the examination that were the
          reporting systems and in         most and least helpful to the institution’s board and management team. The
                                           OIG preserves the anonymity of respondents and the integrity of the survey.
          streamlining programs
          and operations.                  For FY 2014-2015, eight quarterly and two annual summary survey reports
                                           continued to provide useful feedback, mostly positive, for OE. This consistent
          Performance Measures             trend indicates the examination program and staff are well regarded.
                Continued
                                           The OIG has also provided technical advice to management through our
          Ø The OIG performs               work products:
              analyses and
              provides technical               ·   Our audit of special supervision and enforcement processes identified
              advice to                            opportunities for improvement in the criminal referral process. The
              management                           Agency is revising its criminal referral regulation and processes to
              concerning                           clarify requirements and ensure consistency.
              accounting,
              management                       ·   The Commissioning Program audit analyzed how costs are quantified
              systems and controls,                and tracked and potential savings from a revised testing structure. As a
              and performance                      result of our audit, OE will improve cost monitoring and evaluate
              measures.                            required testing in the Commissioning Program.

                                               ·   Our audit on mobile device cost controls analyzed FCA’s device usage
                                                   and found potential contract savings could be gained. The audit also
                                                   identified high data usage among 30 percent of mobile devices during
                                                   an analysis of invoices pointing to a potential need to provide more
                                                   guidance on appropriate usage.

                                               ·   The OIG was notified and briefed regarding a security incident
                                                   involving malware code. The OIG’s Senior IT Auditor advised the
                                                   Agency that the incident required reporting under US-CERT. A security
                                                   incident was immediately filed by the Agency, and the OIG conducted
                                                   and closed an investigation relating to the incident.

                                               ·   We confirmed the need for additional guidance for institutions on flood
                                                   insurance requirements.

                                               ·   Human Resources made changes to practices as a result of
                                                   suggestion by OIG.

                                           The OIG is always receptive to management’s requests for audit work or for the
                                           OIG’s perspective on FCA operations, whether technical or non-technical in
                                           nature. The IG regularly meets with the Board Chairman and Board members
                                           to discuss potential areas for review and the status of ongoing work.

                                                            6
Audits, Inspections, and Evaluative Products
Objective – Audit and evaluate the Agency’s programs and operations to promote economy, efficiency, and effectiveness.




                                                                      OUTCOME / IMPACT
              Performance Goal 3
                                           The OIG team has taken technical courses to gain proficiencies. Training
          Continuous improvement           attended covered:
          of the OIG staff, products,
          and internal office                  ·   OIG Leadership and Professional Development
                                               ·   Information Technology and Cybersecurity
          administration.
                                               ·   Ethics
          Performance Measures                 ·   Internal Controls and Fraud Prevention
                                               ·   Financial Management
          Ø    OIG training ensures            ·   Law and Legal Updates
               the technical                   ·   Federal Audit Executive Council Meetings and Conferences
               proficiency of staff.           ·   Interviewing Techniques
                                               ·   Records Management
          Ø    The OIG implements              ·   Project Management
               administrative
               improvements                In addition, CIGIE training sessions and legal forums were attended. The
               identified through          OIG team also stays current in FCA operations and strategic management
               reviews of Agency           initiatives, including attending the FCA’s 2015 Strategic Planning
               programs and                Conference.
               through staff
               involvement with the        A Senior Auditor serves as an adjunct instructor for CIGIE’s Training Institute.
               professional                OIG staff members receive recognition through awards and recognition from
               community.                  the CIGIE community.

                                           The IG’s opportunity to facilitate positive change within the Agency is
                                           enhanced by the quality and credibility of OIG products and advice.
                                           Management seeks and listens to the OIG’s views on issues.

                                           The quarterly reports on the OIG’s survey of FCS institutions relative to the
                                           Agency’s examination function provide Agency management with quantitative
                                           and narrative feedback that assists in facilitating positive change.

                                           FCA OIG passed its required peer review in 2013. Peer reviews ensure the
                                           OIG audit function meets or exceeds quality audit standards prescribed by
                                           the U.S. Government Accountability Office (GAO) and CIGIE. Our next peer
                                           review is scheduled for 2016.

                                           Audit, inspection, and other reports are almost always made public upon
                                           issuance. OIG continually updates its website and has increased transparency
                                           significantly by adding to its public website, postings for investigation
                                           summaries, Congressional Reports, and new sections on whistleblower
                                           protections and OIG authorities. As required by the Consolidated
                                           Appropriation Act, Pub.L.110-161, the OIG also maintains an email list for
                                           those who wish to be notified when OIG reports are posted to the Agency’s
                                           website. There is a direct link to the OIG on the Agency homepage.




                                                            7
Investigations
Objective – Investigate observed, alleged, or suspected wrongdoing to prevent and detect fraud, waste, abuse, and
mismanagement in Agency programs and operations.




                                                                      OUTCOME / IMPACT
               Performance Goal 1
                                            The OIG issued investigative reports in 2014 and 2015, arising out of OIG
           Effectively investigate          audit work, Agency referrals, and from hotline complaints. Some investigative
           and report administrative        reports identified areas requiring review on administrative issues. OIG
                                            coordinates with law enforcement when warranted. Administrative actions,
           and criminal violations          convictions, or pleas are sought for employees and/or contractors found
           relating to FCA programs         guilty of wrongdoing.
           and personnel to Agency
           officials, the Attorney          Management actions taken against employees serve as deterrents to future
           General (when                    wrongdoing. FCA internal policies, procedures, and controls are strengthened
           appropriate) and the             to prevent and/or detect future wrongdoing. Public confidence in the integrity
                                            of FCA programs and internal operations is heightened.
           Congress.

           Performance Measures                 ·   The agency established a suspension and debarment process based
                                                    on a need identified in an OIG investigation, and also recognized the
           Ø    Investigative                       need to re-examine certain fiscal actions to ensure compliance with
                reports are timely                  applicable laws and regulations.
                and presented in an
                objective and                   ·   The agency altered its procedures relating to government credit card
                factual manner.                     purchases and tracking to identify issues earlier.
                Memoranda are
                issued to                       ·   The agency provided information to FCA employees regarding
                management                          proper use of mobile devices and internet resources.
                describing internal
                control weaknesses              ·   FCA managers are alerted to employee misconduct for expeditious
                or program                          action.
                deficiencies found
                during the                  Whistleblower and hotline complaints receive prompt attention and/or are
                investigative               directed to appropriate jurisdiction.
                process with
                suggestions to
                prevent and/or
                detect future
                wrongdoing.




                                                             8
Investigations
Objective – Investigate observed, alleged, or suspected wrongdoing to prevent and detect fraud, waste, abuse, and
mismanagement in Agency programs and operations.




                                                                        OUTCOME / IMPACT
              Performance Goal 2
                                             During the reporting period, the OIG received 32 hotline complaints. The
          Cause FCA employees                OIG has a secure email hotline, fca-ig-hotline@rcn.com, and phone
          and managers to                    numbers 703-883-4316 and 800-437-7322.
          recognize their
                                             Several hotline complaints led to formal and preliminary investigations
          responsibility and report          resulting in agency referrals and management actions. Investigations are
          observed or suspected              more successful because they are initiated in a timely manner, documented
          wrongdoing to the OIG.             in a more formal manner to improve record-keeping, and allow for a more
                                             thorough review of relevant issues.
           Performance Measures
                                             Several hotline complaints were referred to the Office of Congressional and
          Ø    Allegations of                Public Affairs, and OE. OIG referred allegations from the OIG Hotline
               wrongdoing are                relating to suspected fraud to FCA examiners.
               received in a timely
               manner and are                FCA employees are more willing to report real or suspected wrongdoing
               supported by specific         because they trust the competence, fairness, and confidentiality of OIG’s
               information.                  investigations.

                                             The IG and IG Counsel made presentations to new employees regarding their
                                             responsibility to report observed or suspected fraud, waste, abuse of authority,
                                             mismanagement, or other wrongdoing.




                                                             9
Legislative and Regulatory Review
Objective – Review and make recommendations, as necessary, regarding existing and proposed legislation and
regulations relating to Agency programs and operations and the Inspectors General community.




                                                                      OUTCOME / IMPACT
              Performance Goal 1
                                           Legislation and proposed rules are tracked and commented upon when
          Maintain an effective            appropriate. The OIG input is part of the decision-making process in
          program for reviewing            approving or amending legislation, regulations, circulars, and other policy
          and commenting on                positions. Constructive criticism and creative alternatives offered in OIG
          proposed and existing            comments improve the quality and usefulness of documents issued by the
          legislation and                  Agency and other government offices throughout the OIG community.
          regulations affecting the
                                           The CIGIE Legislation Committee is active in forwarding interest items.
          Agency and IG                    Regulations, legislation, Informational Memoranda, and other issuances are
          community.                       reviewed by the OIG as noted in the OIG’s Semiannual Reports to the
                                           Congress.
          Performance Measures
                                               ·   The OIG attends monthly meetings with FCA’s Office of Regulatory
          Ø    Processes are                       Policy and also has an established collaborative process designed to
               established and                     ensure information on regulations and briefings is sent to the OIG for
               documented for                      review.
               identifying and
               circulating (as                 ·   The OIG also contributes significantly to the IG community’s review
               appropriate) relevant               and evaluation of legislation and regulations through the IG’s active
               documents.                          membership on the CIGIE Legislative Committee.
          Ø    Constructive                The FCA Board and management are informed about the status of new or
               comments on
                                           pending legislation or regulations initiated externally.
               relevant documents
               are submitted by the
               deadlines requested             ·   A management advisory highlighted legislative amendments that
               by the office, Agency,              significantly altered FCA employees’ recordkeeping responsibilities
               or staff circulating                regarding email and text messages that constitute federal records.
               comments.                           In response, the Agency revised guidance to employees on record
                                                   retention requirements.

                                               ·   Following a mandate by the Administration and then, legislation,
                                                   FCA management continues to inform OIG when conference
                                                   expenses exceed $100,000.




                                                           10
Outreach
Objective – Work with the Agency head (FCA Board) and Congress to improve program management, and with the
Inspectors General community and other related organizations to address government-wide issues.




                                                                   OUTCOME / IMPACT
              Performance Goal 1         OIG has developed several educational brochures and pamphlets to describe
                                         the role and function of the OIG. Examples include: The IG at FCA pamphlet,
          Promote OIG’s role within      FCA Annual Employee Orientation PowerPoint presentation, Fraud
          the FCA and the                Awareness Briefings, Semiannual Reports and input into CIGIE surveys and
          community at large.            projects, including the CIGIE Annual Report to the President.

          Performance Measures           The OIG encourages and is receptive to any and all feedback received from
                                         Agency management and staff regarding OIG practices and products.
          Ø    Develop and maintain
               educational               Agency employees’ acceptance of and cooperation with OIG activities is
               brochures or              improved through better understanding of the OIG mission. OIG programs and
               pamphlets describing      products are improved through feedback from Agency employees.
               OIG roles and
               activities.                   ·   OIG has completed significant updates of OIG Directives, including
                                                 revisions to its Investigations Manual, Audit Follow-up and Resolution,
          Ø    Facilitate feedback               Audit Work Papers, and OIG Recordkeeping and Retention, and has
               from Agency                       also issued new directives and delegations, including a directive on
               employees and refine              OIG’s Ethics Program and new delegations to the Director of OMS
               products and                      and the Chief Information Officer.
               practices based on
               the feedback to OIG           ·   We also added information to the OIG website. Specifically, we added
               products and                      enhanced information on whistleblower protections and provided
               educational materials.            notice of OIG’s Office of Special Counsel 2302(c) Certification. We
                                                 also increased transparency by posting Investigation Summaries and
                                                 adding a new section that posts our letter reports to Congress.

                                             ·   OIG educational materials have been enhanced and improved. The IG
                                                 at FCA is an informational brochure that is distributed and discussed
                                                 at new employee orientation and has been updated and re-issued.

                                             ·   The OIG created a new fraud awareness program that included a
                                                 PowerPoint presentation; training segments for the FCA Employee
                                                 Orientation; and a series of articles in FCA Today on fraud awareness
                                                 and actions employees can take to prevent fraud.

                                             ·   The OIG presented at the Executive Management Team meeting for
                                                 OE. Discussions took place about OIG’s ongoing projects and the
                                                 survey.

                                         We responded to numerous Congressional Requests, including inquiries
                                         regarding closed investigations; investigations of high level employees; open
                                         OIG audit recommendations; attempts to interfere with OIG independence and
                                         access to records; and procedures for release of documents under the
                                         Freedom of Information Act. These letter reports to Congress are now posted
                                         on the OIG website for increased transparency.

                                         The OIG’s meetings and correspondence with Congressional staffers inform
                                         lawmakers on FCA OIG and FCSIC and their similarities, intersecting
                                         missions, and differences. This communication facilitates discussions about
                                         expanding the OIG’s jurisdiction.

                                                         11
Outreach
Objective – Work with the 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.




                                                                    OUTCOME / IMPACT
              Performance Goal 2
                                         OIG staff actively participated in CIGIE in a multitude of ways.
          Provide leadership to
          organizations directly         The IG is a member of CIGIE’s Executive Council, Legislative Committee,
                                         Inspection and Evaluation Committee and Small OIGs Working Group.
          contributing to the IG
          community, the Agency,         Also, the IG and staff participated in the Inspection and Evaluation
          and the Federal                Roundtable of CIGIE, Deputy Inspectors General Quarterly meetings, Council
          Government.                    of Counsels, CIGIE Federal Audit Executive Council (FAEC), CIGIE FAEC IT
                                         Committee, CIGIE Freedom of Information Act Working Group, and the
          Performance Measures           CIGIE Records Administration Group.

          Ø    Time and resources        Projects and activities of adjunct organizations are improved by OIG staff
               are provided to OIG       contributions and participation, as follows:
               staff members as an
               incentive to contribute       ·   The IG, as a member of the Executive Council and Legislative
               to the Agency and                 Committee, has worked on various projects involving cross-cutting
               outside organizations             issues for the IG community. These projects include a Congressional
               by serving on                     Relations Handbook, Communications Guidance, and a Working
               committees and                    Group on OIG oversight legislation.
               holding offices.
                                             ·   The IG co-chaired a working group that evaluated oversight of
          Ø    OIG networking                    entities without an OIG. The IG, a Senior Auditor, and the OIG
               opportunities result in           Counsel actively participated in writing a proposal for oversight that
               an expanded                       was distributed to CIGIE and members of Congress. The proposal
               consideration of FCA              addressed different options and strategies for achieving efficient and
               ideas and practices               effective oversight within federal agencies currently without an IG.
               by community                  ·   OIG participates in CIGIE working groups on inspections and
               contacts and experts.             evaluations, records management, Small OIGs, and Freedom of
                                                 Information Act policies and procedures. These groups collaborate
                                                 and share common areas for inspection and evaluation work.
                                             ·   The IG frequently made presentations on IG Oversight Legislation,
                                                 CIGIE Communications Guidance, and other CIGIE issues to the
                                                 CIGIE as well as to other IG community organizations such as the
                                                 Council of Counsels to the OIGs.
                                             ·   The IG Counsel is one of two Vice Chairs for the Council of Counsels
                                                 to the OIGs and participates in CCIG initiatives relating to the
                                                 Freedom of Information Act, recordkeeping policies and procedures,
                                                 and investigative warnings.
                                             ·   The OIG Senior IT Auditor actively participates in the FAEC IT
                                                 Committee.

                                         The OIG has shared information and best practices on record retention
                                         policies, whistleblower certification, cloud computing contract provisions,
                                         suspension and debarment procedures, social media, electronic document
                                         accessibility, and government credit card evaluation measures.



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                                                    APPENDIX

                                                      AUDITS
                         Audits are                             Products are     Audits are      Agreed-Upon
    Audit Name                           Risk Addressed
                          Relevant                                 Timely       Constructive     Actions ≥ 80%
                                                                               8 Agreed-Upon
Travel Card Program      OIG Initiated    Strategic Plan         3 Months                            100%
                                                                                  Actions
Purchase Card                                                                  4 Agreed-Upon
                         OIG Initiated    Strategic Plan         4 Months                            100%
Program                                                                           Actions
Training and                                                                   3 Agreed-Upon
                         OIG Initiated    Strategic Plan         6 Months                            100%
Conference Expenses                                                               Actions
Special Supervision
                                                                               3 Agreed-Upon
and Enforcement          OIG Initiated    Strategic Plan         5 Months                            100%
                                                                                  Actions
Processes
Commissioning                                                                  9 Agreed-Upon
                         OIG Initiated    Strategic Plan         6 Months                            100%
Program                                                                           Actions
Mobile Device Cost                                                             3 Agreed-Upon
                         OIG Initiated    Strategic Plan         6 Months                            100%
Controls                                                                          Actions
Personnel Security                                                             4 Agreed-Upon
                         OIG Initiated    Strategic Plan         5 Months                            100%
and Suitability                                                                   Actions
FY 2013 and 2014
                         Legislatively
Financial Statements
                          Mandated        Strategic Plan         7 Months      No Action Items       N/A
(Issued in FYs 2014
                         Annual Audit
and 2015)
                                                  EVALUATIONS
Federal Information
                         Legislatively
Security Management                                                            2 Agreed-Upon
                          Mandated        Strategic Plan         2 Months                            100%
Act Evaluation for FY                                                             Actions
                        Annual Review
2013
Federal Information
                         Legislatively
Security Management                                                            1 Agreed-Upon
                          Mandated        Strategic Plan         2 Months                            100%
Act Evaluation for FY                                                              Action
                        Annual Review
2014


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