oversight

FY 2009-2010

Published by the Farm Credit Administration, Office of Inspector General on 2008-08-11.

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

Office of
Inspector General



      STRATEGIC AND OPERATING PERFORMANCE PLAN

                      FISCAL YEARS 2009 AND 2010
Farm Credit Administration                                   Office of Inspector General
                                                             1501 Farm Credit Drive
                                                             McLean, Virginia 22102-5090




August 11, 2008


The Honorable Leland A. Strom
Chairman
Farm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090

Dear Chairman Strom:

The enclosed document is the Office of Inspector General’s (OIG) Strategic and Operating
Performance Plan (SOPP) and budgets for fiscal years 2009 and 2010.

The SOPP includes the OIG’s audit plan, a fluid document that may be amended as the year
progresses.

Please call me if you have any questions or comments.

Sincerely,




Carl A. Clinefelter
Inspector General

Enclosure
                                                TABLE OF CONTENTS

Glossary of Terms............................................................................................................... Tab 1

Introduction ......................................................................................................................... Tab 2

Strategic and Operating Performance Plan ........................................................................ Tab 3

Object Class Budget Overview (Summary and Detailed) ................................................... Tab 4
  FY 2009 – Revised Budget and Justifications
  FY 2010 – Proposed Budget and Justifications

OIG Control System ............................................................................................................ Tab 5

Appendices ......................................................................................................................... Tab 6
  Appendix A—Management Challenges
  Appendix B—Audit Plan
  Appendix C—IRM Plan Summary Report
  Appendix D—FY 2009-2010 Products and Services Budget
            Farm Credit Administration
            Office of Inspector General
              Fiscal Years 2009-2010

                  GLOSSARY OF TERMS
Act             Farm Credit Act of 1971, as amended

Agency          Farm Credit Administration

CCIG            Council of Counsels to Inspectors General

ECIE            Executive Council on Integrity and Efficiency

FCA             Farm Credit Administration

FCA Board       Farm Credit Administration Board

FCS             Farm Credit System

FISMA           Federal Information Security Management Act

FTE             Full Time Equivalent

IDP             Individual Development Plan

IG              Inspector General (FCA)

IG Act          Inspector General Act of 1978, as amended

IRM             Information Resources Plan

OIG             Office of Inspector General (FCA)

PCIE            President’s Council on Integrity and Efficiency

SOPP            Strategic Operating and Performance Plan

System          Farm Credit System
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2009-2010

                                        INTRODUCTION
The Farm Credit Administration (FCA or Agency) OIG was established on January 29, 1989, as
a result of 1988 amendments to the Inspector General Act of 1978 (IG Act). The IG Act
established specific responsibilities and authorities for all Federal Inspectors General. The FCA
Inspector General (IG) has a dual reporting responsibility to both the FCA Chairman and the
oversight committees of the Congress.

The OIG analyzes Agency performance through audits, inspections, and evaluations and
provides conclusions and recommendations designed to strengthen Agency effectiveness and
efficiency. The OIG also reviews existing and proposed legislation and regulations relating to
Agency programs and operations to assess the impact on Agency economy and efficiency.

The OIG contracts with an outside accounting firm for the annual audit of FCA’s financial
statements, internal control over financial reporting, and compliance with laws and regulations
relating to the determination of financial statement amounts. The accounting firm’s opinion
letters and accompanying Agency financial statements and notes are included in the Agency’s
annual Performance and Accountability Report. The OIG conducts the annual evaluation of the
Agency’s compliance with the Federal Information Security Management Act (FISMA) and
issues a report that is submitted to the Office of Management and Budget.

The OIG also maintains a Hotline for reporting allegations of fraud, waste, abuse, and
mismanagement. When there are alleged administrative or criminal violations relating to
Agency programs or personnel, the OIG will timely and effectively investigate and report.




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                           1
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2009-2010

            STRATEGIC AND OPERATING PERFORMANCE PLAN

                                               MISSION
The OIG’s work products and presence will promote economy, efficiency, and integrity in
Agency operations.

                                           CORE VALUES
    •   Integrity – Giving straightforward, objective and balanced advice, motivated by a desire
        to improve conditions and do what is right.
    •   Excellence – Producing high quality work and products that are timely and relevant.
    •   Knowledge – Acquiring and expanding relevant skills and expertise.
    •   Responsibility – Being accountable for our actions, work, and results and holding our
        customers to the same.

                                      CORE COMPETENCIES
    •   Teamwork – We combine our staff skills and outside expertise to accomplish our
        mission.
    •   Technology – We enhance the effectiveness of our work with the practical application of
        technology.
    •   Broad Vision – We use our FCA knowledge to focus efforts on significant issues within
        the Agency.
    •   Customer Centered – We are independent and believe we are successful when we
        have helped FCA become more successful.

                                           ASSUMPTIONS

    •   Changing work force. There will continue to be periodic changes in FCA’s Board
        composition and Agency organization, and ongoing changes in FCA staffing, e.g., new
        hires and retirements. The latter may result in the loss of corporate knowledge, e.g., that
        gained from the Agency’s regulatory experience during the agriculture crisis of the mid
        1980s through the early 1990s. The Farm Credit System (FCS or System) and the
        credit needs of rural America will continue to evolve and change. The financial and
        banking industry will continue to become more complex. As a result, the Agency’s
        methodology in achieving its mission will continually evolve and the OIG will need to
        remain vigilant over Agency performance and internal controls.

    •   Changing work environment. As FCA leverages technology to improve its processes,
        the OIG will have to be positioned to evaluate new risks in internal controls and security



_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                           2
        measures. As a result, the OIG has expanded its expertise in technology to effectively
        perform the function.

    •   Limited budget resources. Budget pressures on the OIG will be equivalent to those
        faced by FCA as a whole. The OIG will have to use an efficient mix of its core
        competencies and external resources to fulfill its mission. Technology will continue to
        cause change in processes and our approach to work.
    •   Farm Credit Act. Changes in the agricultural and the financial industries will cause the
        FCS to seek greater flexibility in law and regulations. OIG will continue to ensure that
        the FCA is ever mindful of its arms length regulatory role and mission to ensure the
        System’s service to rural America in a safe and sound manner, and will continue to
        review and may make recommendations regarding laws and regulations.

                           PRODUCTS AND SERVICES, AND GOALS

    1. Audit and evaluate the Agency’s programs and operations to promote economy,
       efficiency, and effectiveness.
            •   Deliver quality audit and inspection products and services that are useful to the
                Board, management, and the Congress.
            •   Provide technical advice and assistance to Agency officials in developing sound
                management information and financial reporting systems and in streamlining
                programs and operations.
            •   Continuously improve OIG staff, products, and internal office administration.

    2. Investigate observed, alleged, or suspected wrongdoing to prevent and detect
       fraud, waste, abuse, and mismanagement in Agency programs and operations.
            •   Effectively investigate alleged administrative and criminal violations relating to
                FCA programs and personnel.
            •   Educate employees on their responsibility to report wrongdoing to the OIG.
            •   Provide relevant information on results of investigative activities to appropriate
                parties.
    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.
            •   Maintain an effective program for reviewing and commenting on proposed and
                existing legislation and regulations.
    4. Work with the Agency head and Congress to improve program management, and
       with the Inspectors General community and other related organizations to address
       government-wide issues.
            •   Building relationships with program managers based on a shared commitment to
                improving program operations and effectiveness.
            •   Provide leadership to the Inspectors General community.
            •   Contribute to special projects to improve the Agency.


_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                           3
                                                     Farm Credit Administration
                                                     Office of Inspector General
                                                       Fiscal Years 2009-2010


                         AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS
                                                           AGENCY GOALS 1 AND 2

                    OIG GOAL                                  PERFORMANCE MEASURES                                          OUTCOME/IMPACT
     1.   Deliver quality audit, inspection, and   Audits and inspections are relevant. Audit coverage          FCA programs and operations are more
          review products and services that        includes all mandated audits and at least 75% of those       effective.
          are useful to the Board,                 suggested by the Board and management.
                                                                                                                FCA continues to receive unqualified financial
          management and Congress.
                                                   Risk is addressed. 100% of OIG audits are performed in       audits.
                                                   substantive Agency programs and activities and/or are
                                                                                                                Waste in Agency programs and operations is
                                                   tied to the Agency strategic planning goals.
                                                                                                                reduced.
                                                   Products are timely, i.e., average time to complete audits
                                                                                                                Increased Agency compliance with laws,
                                                   and issue draft reports will not exceed 6 months.
                                                                                                                regulations, and internal policies and
                                                   Audits are constructive. At least 75% of audit products      procedures.
                                                   contain recommendations to improve Agency operations.
                                                                                                                The Agency’s stature and reputation is
                                                   The Agency accepts at least 80% of the OIG audit
                                                                                                                elevated in the eyes of the Congress, the
                                                   recommendations.
                                                                                                                Administration, the FCS, FCA employees and
                                                                                                                the public.
                                                                                                                FCA is more effective in carrying out its
                                                                                                                mission.
                                                                                                                The OIG is more effective in promoting
                                                                                                                economy, effectiveness and efficiency within
                                                                                                                the Agency.




___________________________________________________________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                                                                             4
                                                   Farm Credit Administration
                                                   Office of Inspector General
                                                     Fiscal Years 2009-2010


                         AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS
                                                          AGENCY GOALS 1 AND 2

                    OIG GOAL                                 PERFORMANCE MEASURES                                       OUTCOME/IMPACT



     2.   Provide technical advice and           The IG advises the Chairman concerning policy direction    FCA continues to receive an unqualified
          assistance to Agency officials in      or administrative priorities.                              financial audit.
          developing sound management
                                                 OIG performs analysis and provides technical advice to     OIG input and advice contributes to Agency
          information and financial reporting
                                                 management concerning accounting, management               decisions and actions that are more complete
          systems and in streamlining
                                                 systems and controls, and performance measures.            and valid in the inception.
          programs and operations.

     3.   Continuous improvement in OIG          OIG training ensures the technical proficiency of staff.   The IG’s opportunity to facilitate positive
          staff, products, and internal office                                                              change within the Agency is enhanced by the
                                                 OIG implements administrative improvements identified
          administration.                                                                                   quality and credibility of OIG products and
                                                 through reviews of other Agency programs and through
                                                                                                            advice.
                                                 staff involvement with the professional community.
                                                                                                            Peer review reports provide an unmodified
                                                                                                            opinion that OIG audit work meets or exceeds
                                                                                                            quality audit standards prescribed by the
                                                                                                            Government Accountability Office and the
                                                                                                            President’s Council on Integrity and Efficiency
                                                                                                            (PCIE) and the Executive Council on Integrity
                                                                                                            and Efficiency (ECIE).




___________________________________________________________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                                                                             5
                                                   Farm Credit Administration
                                                   Office of Inspector General
                                                     Fiscal Years 2009-2010

                                                                    INVESTIGATIONS
                                                         AGENCY GOALS 1 AND 2

                  OIG GOAL                                   PERFORMANCE MEASURE                                            OUTCOME/IMPACT
      1. Alleged administrative and            Investigative reports are timely and presented in an             Administrative action, convictions or pleas are
         criminal violations relating to FCA   objective and factual manner. Memoranda are issued to            obtained for employees and/or contractors
         programs and personnel are            management describing internal control weaknesses or             found guilty of wrongdoing.
         effectively investigated and          program deficiencies found during the investigative process
                                                                                                                Management actions taken against employees
         reported.                             with suggestions to prevent and/or detect future
                                                                                                                serve as a deterrent to future wrongdoing.
                                               wrongdoing.
                                                                                                                FCA internal policies, procedures and controls
                                               70% of active cases will be less than two years old (from
                                                                                                                are strengthened to prevent and/or detect
                                               the date the case was opened).
                                                                                                                future wrongdoing.
                                               100% of employee cases without criminal prosecution
                                               potential will be completed within one year from opening
                                               the case.
      2. FCA employees and managers            Allegations of wrongdoing are received in a timely manner        Investigations are more successful because
         recognize their responsibility to     and are supported by specific information.                       they are initiated in a timelier manner and have
         immediately report observed or                                                                         better information.
         suspected wrongdoing to the IG.
                                                                                                                FCA employees are more willing to report real
                                                                                                                or suspected wrongdoing because they trust
                                                                                                                the competence, fairness and confidentiality of
                                                                                                                OIG’s investigations.
      3. Agency officials and the Congress     Summaries of investigations and the resulting                    The Chairman and the Congress are better
         are kept fully and currently          administrative or judicial actions taken are incorporated into   informed about OIG investigations, and
         informed of problems found in the     the Semiannual Report to the Congress, along with any            administrative and judicial consequences.
         process of and resulting from         disagreements on the actions taken or failure of
                                                                                                                Public confidence in the integrity of FCA
         investigative activities.             management to act in a timely and responsible fashion.
                                                                                                                programs and internal operations is
                                               Findings made during the investigative process concerning        heightened.
                                               the problem at issue or systemic problems are recognized
                                               and corrected or mediated by management.

___________________________________________________________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                                                                             6
                                                   Farm Credit Administration
                                                   Office of Inspector General
                                                     Fiscal Years 2009-2010


                                                 LEGISLATIVE AND REGULATORY REVIEW
                                                         AGENCY GOALS 1 AND 2

                   OIG GOAL                                   PERFORMANCE MEASURE                                       OUTCOME/IMPACT
      1. Maintain an effective program for       Processes are established and documented for               OIG input is part of the decision making
         reviewing and commenting on             identifying and circulating (as appropriate) relevant      process in approving or amending legislation,
         proposed and existing legislation and   documents.                                                 regulations, circulars and other policy
         regulations affecting the Agency and                                                               documents.
                                                 Constructive comments on relevant documents are
         the Inspectors General community.
                                                 submitted by the deadlines requested by the office,        Constructive criticism and creative alternatives
                                                 Agency, or staff circulating comments.                     offered in OIG comments improve the quality
                                                                                                            and usefulness of documents initiated by the
                                                 Document review activity is summarized for inclusion in
                                                                                                            Agency.
                                                 the Semiannual Report to the Congress.
                                                                                                            FCA Board and management are informed
                                                                                                            about the status of new or pending legislation
                                                                                                            or regulations initiated externally.




___________________________________________________________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                                                                             7
                                                   Farm Credit Administration
                                                   Office of Inspector General
                                                     Fiscal Years 2009-2010


                                                               OUTREACH PROGRAM
                                                         AGENCY GOALS 1 AND 2

                   OIG GOAL                                  PERFORMANCE MEASURE                                         OUTCOME/IMPACT
     1. Agency personnel understand and          Develop and maintain educational brochures or               Agency employees’ acceptance of and
        accept OIG’s role within FCA and the     pamphlets describing OIG roles and activities.              cooperation with OIG activities is improved
        Inspectors General community at                                                                      through better understanding. OIG programs
                                                 Facilitate feedback from Agency employees and refine
        large.                                                                                               and products are improved through feedback
                                                 products and practices based on the feedback to OIG
                                                                                                             from Agency employees.
                                                 products and educational materials.
     2. OIG staff provide leadership to          Time and resources are provided to OIG staff members        Projects and activities of adjunct organizations
        organizations directly contributing to   as an incentive to contribute to outside organizations by   such as the Association of Government
        the Inspectors General community.        serving on committees and holding offices.                  Accountants, Institute of Internal Auditors,
                                                                                                             PCIE/ECIE, Council of Counsels to Inspectors
                                                                                                             General (CCIG), Federal Law Enforcement
                                                                                                             Training Center, and Inspectors General
                                                                                                             Auditor Training Institute are improved by OIG
                                                                                                             staff contributions and participation.
                                                                                                             The Inspectors General community is more
                                                                                                             credible and effective.
     3. OIG staff contribute to special          OIG staff will participate in projects that contribute to   Management practices at the Agency are
        projects for improving the Agency,       achieving the vision of a better Agency and government.     improved by OIG staff participation in FCA
        the Inspectors General community,                                                                    special projects.
        and the Federal government.
                                                                                                             FCA programs and operations are more
                                                                                                             effective and efficient.




___________________________________________________________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                                                                             8
11-August-2008
                                    FARM CREDIT ADMINISTRATION
                                       FY 2009/2010 Budget Call
                                               Unit 700000
                                       Office of Inspector General
                                            Summary Budget

 FULL-TIME EQUIVALENTS (FTE)                              4.61       4.61

                                                       FY 2009 FY 2010    DIFFERENCE
 OBJECT CLASSIFICATION                                 Revised Proposed Amount Percent
     1100 Total Personnel Compensation
      11.1 Permanent Full-Time                          432,291      432,291         0        0.00%
      11.3 Other than Permanent Full-Time               283,157      283,157         0        0.00%
      11.6 Overtime                                           0            0         0        0.00%
      11.7 Other Personnel Compensation - Awards          2,400        2,400         0        0.00%
                                  TOTAL 1100            717,848      717,848         0        0.00%
     1200 Total Personnel Benefits
      12.1 Civilian Personnel Benefits/Retirement       170,143      174,163    4,020         2.36%
      12.3 Incentives                                         0            0        0         0.00%
      12.6 Relocation/Permanent Change Of Station             0            0        0         0.00%
                                  TOTAL 1200            170,143      174,163    4,020         2.36%
     1300 Benefits Former Personnel
      13.0 Benefits for Former Personnel                         0          0        0        0.00%
                                  TOTAL 1300                     0          0        0        0.00%
     2100 Travel and Transportation of Persons
      21.1 Domestic and Local Travel                     12,400       14,400    2,000        16.13%
           Relocation/Permanent Change of Station
      21.5                                                       0          0        0        0.00%
           (PCS)
                                  TOTAL 2100             12,400       14,400    2,000        16.13%
     2200 Transportation of Things
           Transportation of Things (Non-
      22.1                                                  200         200          0        0.00%
           Relocation/PCS)
           Relocation/Permanent Change of Station
      22.5                                                       0          0        0        0.00%
           (PCS)
                                  TOTAL       2200          200         200          0        0.00%




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         9
11-August-2008
                                    FARM CREDIT ADMINISTRATION
                                       FY 2009/2010 Budget Call
                                               Unit 700000
                                       Office of Inspector General
                                            Summary Budget



          Rent, Communications, Utilities
    2300
          and Misc. Charges
     23.2 Rental Payments to Others                 1,500        1,500            0           0.00%
     23.3 Utilities                                     0            0            0           0.00%
     23.4 ADP Rental                                    0            0            0           0.00%
     23.5 Telecommunications                        2,775        2,775            0           0.00%
     23.7 Other Rentals                                 0            0            0           0.00%
     23.8 Postage                                     100          100            0           0.00%
                      TOTAL 2300                    4,375        4,375            0           0.00%
    2400 Printing and Reproduction
     24.1 Government Printing                           0             0           0           0.00%
          Commercial Printing and
     24.3                                            750           750            0           0.00%
          Duplication
     24.5 Advertising                                  0             0            0           0.00%
                      TOTAL 2400                     750           750            0           0.00%
    2500 Other Contractual Services
     25.1 Consulting Services                     80,000        84,000        4,000           5.00%
     25.2 Other Services                           8,350         5,300       -3,050         -36.53%
          Purchase of Goods and Services
     25.3                                           4,950        4,500         -450          -9.09%
          from Govt. Accts.
          Operation and Maintenance of
     25.4                                               0             0           0           0.00%
          Facilities
          Operation and Maintenance of
     25.7                                               0             0           0           0.00%
          Equipment
     25.9 Relocation/PCS                               0             0            0           0.00%
                      TOTAL 2500                  93,300        93,800          500           0.54%
    2600 Supplies and Materials
     26.1 Office Supplies and Publications          1,280        1,250          -30          -2.34%
     26.4 Fuel                                          0            0            0           0.00%
                      TOTAL         2600            1,280        1,250          -30          -2.34%




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         10
11-August-2008
                                    FARM CREDIT ADMINISTRATION
                                       FY 2009/2010 Budget Call
                                               Unit 700000
                                       Office of Inspector General
                                            Summary Budget



   3100 Equipment
    31.2 Office Furniture and Equipment                   0                0          0       0.00%
    31.5 ADP Software                                   500              500          0       0.00%
    31.6 ADP Equipment/Hardware                       1,120              240       -880     -78.57%
                         TOTAL 3100                   1,620              740       -880     -54.32%
         Insurance Claims and
   4200
         Indemnities
    42.1 Tort Claims                                     0                0          0        0.00%
                         TOTAL 4200                      0                0          0        0.00%
 GRAND TOTAL FOR UNIT                           $1,001,916       $1,007,526     $5,610        0.56%




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         11
11-August-2008
                                               FARM CREDIT ADMINISTRATION
                                                  FY 2009/2010 Budget Call
                                                          Unit 700000
                                                  Office of Inspector General
                                                       Detailed Budget



 FULL-TIME EQUIVALENTS (FTE)                                                           4.61      4.61


                                                                                     FY 2009   FY 2010      DIFFERENCE
 OBJECT CLASSIFICATION                                                               Revised   Proposed Amount Percent
1100      Total Personnel Compensation
 11.1     Permanent Full-Time
        1111                           Permanent Full-Time                          432,291     432,291        0    0.00%
        1199                           Accrual for Funded Leave                           0             0      0    0.00%
                           Sub-Total                                                432,291     432,291        0    0.00%


 11.3     Other than Permanent Full-Time
        1139                           Other than Permanent Full-Time               283,157     283,157        0    0.00%
                           Sub-Total                                                283,157     283,157        0    0.00%


 11.6     Overtime
        1161                           Overtime                                           0             0      0    0.00%
                           Sub-Total                                                      0             0      0    0.00%


 11.7     Other Personnel Compensation - Awards
        1171                           Performance, Incentives and Other Awards       2,400       2,400        0    0.00%
                           Sub-Total                                                  2,400       2,400        0    0.00%


 TOTAL 1100                                                                         717,848     717,848        0    0.00%


1200      Total Personnel Benefits
 12.1     Civilian Personnel Benefits/Retirement
        1213                           TSP Match                                     19,446      19,446        0    0.00%
        1217                           Disability Insurance Contributions                 0             0      0    0.00%
        121B                           Wellness, Flex-care/Life Cycle Programs        6,500       6,500        0    0.00%
        1299                           Benefits Generated from Payroll              144,197     148,217     4,020   2.79%
                           Sub-Total                                                170,143     174,163     4,020   2.36%


 12.3     Incentives
        1236                           Public Transportation Initiatives                  0             0      0    0.00%
        1237                           Student Loan Repayments                            0             0      0    0.00%
                           Sub-Total                                                      0             0      0    0.00%


 12.6     Relocation/Permanent Change Of Station
        1224                           Relocation Payments Under Object Code 1200         0             0      0    0.00%
                           Sub-Total                                                      0             0      0    0.00%


 TOTAL 1200                                                                         170,143     174,163     4,020   2.36%


1300      Benefits Former Personnel
 13       Benefits for Former Personnel




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         12
11-August-2008
                                             FARM CREDIT ADMINISTRATION
                                                FY 2009/2010 Budget Call
                                                        Unit 700000
                                                Office of Inspector General
                                                     Detailed Budget

        1302                          Unemployment Compensation                               0        0       0   0.00%
                          Sub-Total                                                           0        0       0   0.00%


 TOTAL 1300                                                                                   0        0       0   0.00%


2100      Travel and Transportation of Persons
 21.1     Domestic and Local Travel
        2121                          Local Travel                                         3,300    3,400    100   3.03%
        2199                          Temporary Duty Travel                                9,100   11,000   1,900 20.88%
                          Sub-Total                                                       12,400   14,400   2,000 16.13%


 21.5     Relocation/Permanent Change of Station (PCS)
        2151                          Relocation Travel Expenses                              0        0       0   0.00%
        2152                          Relocation House Hunting                                0        0       0   0.00%
                          Sub-Total                                                           0        0       0   0.00%


 TOTAL 2100                                                                               12,400   14,400   2,000 16.13%


2200      Transportation of Things
 22.1     Transportation of Things (Non-Relocation/PCS)
        2211                          Freight and Express Mail                              200      200       0   0.00%
        2212                          Freight and Express Mail - Contract Mail Services       0        0       0   0.00%
                          Sub-Total                                                         200      200       0   0.00%


 22.5     Relocation/Permanent Change of Station (PCS)
        2251                          Transportation of Household Goods                       0        0       0   0.00%
                          Sub-Total                                                           0        0       0   0.00%


 TOTAL 2200                                                                                 200      200       0   0.00%


2300      Rent, Communications, Utilities and Misc. Charges
 23.2     Rental Payments to Others
        2321                          Rent/Lease - Space Lodging                           1,500    1,500      0   0.00%
                          Sub-Total                                                        1,500    1,500      0   0.00%


 23.3     Utilities
        2331                          Utilities - Other than Telephone and Comm. Svcs.        0        0       0   0.00%
                          Sub-Total                                                           0        0       0   0.00%


 23.4     ADP Rental
        2341                          ADP Equipment and Software Rental                       0        0       0   0.00%
                          Sub-Total                                                           0        0       0   0.00%


 23.5     Telecommunications
        2351                          Telephone and Communication Services                 2,775    2,775      0   0.00%
        2354                          Wireless Communication Services                         0        0       0   0.00%
                          Sub-Total                                                        2,775    2,775      0   0.00%




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         13
11-August-2008
                                               FARM CREDIT ADMINISTRATION
                                                  FY 2009/2010 Budget Call
                                                          Unit 700000
                                                  Office of Inspector General
                                                       Detailed Budget


 23.7     Other Rentals
        2371                           Non-ADP Equipment Rental                             0        0        0   0.00%
                           Sub-Total                                                        0        0        0   0.00%


 23.8     Postage
        2382                           Postage - USPS                                       0        0        0   0.00%
        2384                           Postage Meter Rental                                 0        0        0   0.00%
        2385                           Messenger and Courier Services                     100      100        0   0.00%
                           Sub-Total                                                      100      100        0   0.00%


 TOTAL 2300                                                                              4,375    4,375       0   0.00%


2400      Printing and Reproduction
 24.1     Government Printing
        2411                           U.S. Government Printing Office (GPO)                0        0        0   0.00%
                           Sub-Total                                                        0        0        0   0.00%


 24.3     Commercial Printing and Duplication
        2431                           Commercial Printers/Photographers                  750      750        0   0.00%
                           Sub-Total                                                      750      750        0   0.00%


 24.5     Advertising
        2451                           Publications of Notices/Classified Advertising       0        0        0   0.00%
                           Sub-Total                                                        0        0        0   0.00%


 TOTAL 2400                                                                               750      750        0   0.00%


2500      Other Contractual Services
 25.1     Consulting Services
        2511                           Consulting Services                              80,000   84,000   4,000   5.00%
                           Sub-Total                                                    80,000   84,000   4,000   5.00%


 25.2     Other Services
        2524                           Miscellaneous Services                            1,300    1,300       0   0.00%
        2528                           Training - Commercial                             7,050    4,000   -3,050 -43.26%
                           Sub-Total                                                     8,350    5,300   -3,050 -36.53%


 25.3     Purchase of Goods and Services from Govt. Accts.
        2531                           Services of Other Government Agencies                0        0        0   0.00%
        2538                           Training - Government                             4,950    4,500    -450 -9.09%
                           Sub-Total                                                     4,950    4,500    -450 -9.09%


 25.4     Operation and Maintenance of Facilities
        2541                           Renovating Office Space                              0        0        0   0.00%
                           Sub-Total                                                        0        0        0   0.00%




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         14
11-August-2008
                                               FARM CREDIT ADMINISTRATION
                                                  FY 2009/2010 Budget Call
                                                          Unit 700000
                                                  Office of Inspector General
                                                       Detailed Budget

 25.7     Operation and Maintenance of Equipment
        2571                           Operation/Maintenance - Non ADP Equipment                    0            0        0    0.00%
        2572                           Operation/Maintenance - ADP Equipment/Software               0            0        0    0.00%
                           Sub-Total                                                                0            0        0    0.00%


 25.9     Relocation/PCS
        2591                           Storage of Household Goods                                   0            0        0    0.00%
                           Sub-Total                                                                0            0        0    0.00%


 TOTAL 2500                                                                                    93,300       93,800      500    0.54%


2600      Supplies and Materials
 26.1     Office Supplies and Publications
        2611                           Supplies                                                   780          750       -30 -3.85%
        2612                           Subscriptions, Publications and Training Materials         500          500        0    0.00%
                           Sub-Total                                                            1,280        1,250       -30 -2.34%


 26.4     Fuel
        2641                           Fuel                                                         0            0        0    0.00%
                           Sub-Total                                                                0            0        0    0.00%


 TOTAL 2600                                                                                     1,280        1,250       -30 -2.34%


3100      Equipment
 31.2     Office Furniture and Equipment
        3122                           Non-IT Equipment, Furniture, Fixtures                        0            0        0    0.00%
                           Sub-Total                                                                0            0        0    0.00%


 31.5     ADP Software
        3152                           Software                                                   500          500        0    0.00%
                           Sub-Total                                                              500          500        0    0.00%


 31.6     ADP Equipment/Hardware
        3162                           IT Equipment                                             1,120          240      -880 -78.57%
                           Sub-Total                                                            1,120          240      -880 -78.57%


 TOTAL 3100                                                                                     1,620          740      -880 -54.32%


4200      Insurance Claims and Indemnities
 42.1     Tort Claims
        4211                           Insurance Claims and Indemnities                             0            0        0    0.00%
                                                                                                    0            0        0    0.00%
                           Sub-Total

 TOTAL 4200                                                                                         0            0        0    0.00%


 GRAND TOTAL FOR UNIT                                                                       $1,001,916   $1,007,526   $5,610   0.56%




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         15
                            Farm Credit Administration
                            Office of Inspector General
                              Fiscal Years 2009-2010

                  FY 2009 REVISED BUDGET AND JUSTIFICATIONS
TOTAL OFFICE BUDGET .......................................................................................... $1,001,916
   Total approved IRM Plan amount included in Office Budget....................................... $10,745

1100 Personnel Compensation ................................................................................... $717,848
Amount required to fund salaries of OIG staff (4.61 FTEs) charged with conducting audits,
inspections, evaluations, and investigations related to Agency programs and operations. We
are also responsible for reviewing existing and proposed legislation and regulations to evaluate
their impact on the Agency. Funds ($2,400) are also allocated for possible cash awards.

1200 Personnel Benefits ............................................................................................. $170,143
Benefits are the direct result of salaries, consistent with employees’ retirement systems, health
and other related benefits.

1300 Benefits for Former Personnel ..................................................................................... $0
N/A

2100 Travel and Transportation of Persons ................................................................ $12,400
OIG staff will use these funds for travel ($7,600) related to scheduled IDP training and local
travel ($1,800) to professional association meetings, for example. Travel funds ($3,000) are
also included for local and/or temporary duty travel related to possible investigative matters.

2200 Transportation of Things .......................................................................................... $200
The amount is necessary for express mail services throughout the year.

2300 Rent, Communications, Utilities, and Miscellaneous .......................................... $4,375
   2351 Approved IRM Plan .............................................................................................. $2,775
These funds will cover BlackBerry™ voice, data, and tethering service for the OIG’s ($1,085),
telecommuters’ access expense ($1,440), and maintenance of an independent internet account
for the anonymous HOTLINE account ($250). The independent internet account is used for
confidential reporting of fraud, waste, abuse, and mismanagement. Also, in this object class are
funds for offsite meeting expenses ($1,500) for a possible one-day OIG team building exercise,
and $100 for potential courier delivery services.

2400 Printing and Reproduction ........................................................................................ $750
Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the
items.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         17
                             Farm Credit Administration
                             Office of Inspector General
                               Fiscal Years 2009-2010

                   FY 2009 REVISED BUDGET AND JUSTIFICATIONS
2500 Other Contractual Services .................................................................................. $93,300
Tuition funds ($7,050) from non-government sources are for staff training. Government tuition
funds ($4,950) are for staff training at the U.S. Department of Agriculture, the Federal Law
Enforcement Training Center, and other government agencies, for example. Individual training
classes are a mandatory requirement of the Government Audit Standards (Yellow Book) for
auditors and of the bar association for the Counsel to the IG. Membership fees ($1,300) will
cover the dues for professional organizations to which OIG staff belong.
Contractual services are utilized to assist OIG staff in the review of programs, including the FCA
financial statement audit ($40,000) and possible general contracting needs ($40,000).

2600 Supplies and Materials ........................................................................................... $1,280
    2611 Approved IRM Plan ................................................................................................... $30
    2612 Approved IRM Plan ................................................................................................. $200
To purchase miscellaneous reference books ($300) as well as on-going subscriptions in the
IRM Plan ($200) and one BlackBerry™ replacement battery ($30). General office supply funds
($750) are also included.

3100 Equipment ...............................................................................................................$1,620
    3152 Approved IRM Plan ................................................................................................. $500
    3162 Approved IRM Plan .............................................................................................. $1,120
Purchase equipment and software (Desktop printers, fax machine, document scanner) as
necessary to support OIG programs ($1,120) and an additional $500 for software.

4200 Insurance Claims and Indemnities ............................................................................... $0
N/A




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         18
                            Farm Credit Administration
                            Office of Inspector General
                              Fiscal Years 2009-2010

               FY 2010 PROPOSED BUDGET AND JUSTIFICATIONS
TOTAL OFFICE BUDGET .......................................................................................... $1,007,526
   Total approved IRM Plan amount included in Office Budget......................................... $9,835

1100 Personnel Compensation ................................................................................... $717,848
Amount required to fund salaries of OIG staff (4.61 FTEs) charged with conducting audits,
inspections, evaluations, and investigations related to Agency programs and operations. We
are also responsible for reviewing existing and proposed legislation and regulations to evaluate
their impact on the Agency. Funds ($2,400) are also allocated for possible cash awards.

1200 Personnel Benefits ............................................................................................. $174,163
Benefits are the direct result of salaries, consistent with employees’ retirement systems, health
and other related benefits.

1300 Benefits for Former Personnel ..................................................................................... $0
N/A

2100 Travel and Transportation of Persons ................................................................ $14,400
OIG staff will use these funds for travel ($9,500) related to scheduled IDP training and local
travel ($1,900) to professional association meetings, for example. Travel funds ($3,000) are
also included for local and/or temporary duty travel related to possible investigative matters.

2200 Transportation of Things .......................................................................................... $200
The amount is necessary for express mail services throughout the year.

2300 Rent, Communications, Utilities, and Miscellaneous .......................................... $4,375
   2351 Approved IRM Plan .............................................................................................. $2,775
These funds will cover BlackBerry™ voice, data, and tethering service for the OIG’s ($1,085),
telecommuters’ access expense ($1,440), and maintenance of an independent internet account
for the anonymous HOTLINE account ($250). The independent internet account is used for
confidential reporting of fraud, waste, abuse, and mismanagement. Also, in this object class are
funds for offsite meeting expenses ($1,500) for a possible one-day OIG team building exercise,
and $100 for potential courier delivery services.

2400 Printing, Publications and Advertisement ............................................................... $750
Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the
items.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         19
                              Farm Credit Administration
                              Office of Inspector General
                                Fiscal Years 2009-2010

                FY 2010 PROPOSED BUDGET AND JUSTIFICATIONS


2500 Other Contractual Services .................................................................................. $93,800
Tuition funds ($4,000) from non-government sources are for staff training. Government tuition
funds ($4,500) are for staff training at the U.S. Department of Agriculture, the Federal Law
Enforcement Training Center, and other government agencies, for example. Individual training
classes are a mandatory requirement of the Yellow Book for auditors and of the bar association
for the Counsel to the IG. Membership fees ($1,300) will cover the dues for professional
organizations to which OIG staff belong.
Contractual services are utilized to assist OIG staff in the review of programs, including the FCA
financial statement audit ($44,000) and possible general contracting needs ($40,000).

2600 Supplies and Materials ........................................................................................... $1,250
    2612 Approved IRM Plan ................................................................................................. $200
To purchase miscellaneous reference books ($300) as well as on-going subscriptions in the
IRM Plan ($200). General office supply funds ($750) are also included.

3100 Equipment .................................................................................................................. $740
    3152 Approved IRM Plan ................................................................................................. $500
    3162 Approved IRM Plan ................................................................................................. $240
Purchase software as necessary to support OIG applications ($500), and office equipment
purchases ($240), i.e., desktop printer and BlackBerry™ battery.

4200 Insurance Claims and Indemnities ............................................................................... $0
N/A




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         20
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2009-2010
                                  OIG CONTROL SYSTEM

STATUTORY ROLE AND RESPONSIBILITIES
The OIG was created within the FCA by the 1988 amendments to the IG Act as an independent
unit to: 1) conduct and supervise audits and investigations; 2) promote economy, efficiency and
effectiveness and to prevent fraud and abuse in program administration; and 3) keep the
Chairman and the Congress fully informed about problems and deficiencies and the progress in
correcting them.

The IG Act specifies the IG’s duties, responsibilities, and authorities. The IG Act precludes the
OIG from performing any Agency program operating function; rather, the OIG advises
management and the Congress about ways to improve programs. The IG works with the
Chairman to promote positive change in the Agency’s programs and operations.

OIG STAFFING NEEDED TO DELIVER PRODUCTS AND SERVICES
This section describes the staffing of the OIG. It also discusses how the OIG is organized to
produce the products and services appropriate to fulfill its responsibilities.

The Inspector General provides leadership, policy direction, and general management and
supervision of the OIG staff. The IG is also an advisor to the Chairman and the principal
spokesperson for OIG, coordinating its activities and issues with other agencies. The IG
position is to be comparable in grade with the other office directors.

The Counsel to the Inspector General provides independent legal advice, analysis of
proposed legislation and regulations, and reviews OIG products for legal sufficiency. The
Counsel represents and defends OIG in all legal issues. The Counsel also participates in
inspections and evaluations as necessary. The Counsel directs the investigative function. The
Counsel position is currently staffed as a permanent part-time position at a 0.80 FTE.

The Senior Auditor position is devoted primarily to performance audits, inspections, and
management analyses, focusing on the significant management challenges of the Agency.
Also, this position oversees the contractor performing the annual financial, internal control, and
compliance audit of the Agency on behalf of the OIG.

A Senior Information Technology Auditor position was created with the discontinuance of the
Criminal Investigator position. This position focuses on audits and inspections related to the
broad range of the Agency’s information technology policies, processes, and security, and also
performs the annual FISMA review. This position is currently staffed as a permanent part-time
position at 0.80 FTE.

The Administrative Assistant is responsible for assisting the IG in budgeting, information
resources planning, procurement, training, administrative matters relating to personnel
management, and for general administrative support to the rest of the staff. The position is also
responsible for assisting the IG in the completion of the Semiannual Report to the Congress and


________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         21
the quarterly and annual reports on the OIG Survey of FCS institutions regarding the Agency’s
examination function.

All positions in the OIG are staffed with well qualified personnel.

OIG PRODUCTS AND SERVICES
Audits and Inspections are the primary vehicles through which the OIG develops
recommendations to promote economy, efficiency, and effectiveness in Agency programs and
prevent waste and mismanagement. OIG also provides input to the Chairman or managers
through management letters and confidential observations.

The auditors are devoted full time to audits and inspections. The Counsel to the IG may also
perform inspections and evaluations focusing on evaluating administrative and operational
issues.

OIG augments its core staff with contracts when subject matter expertise is needed to perform a
particular task.

Investigations encompass all OIG activities designed to detect or prevent fraud and abuse in
administering Agency programs.         Investigations are normally distinguished from other
evaluations in that they are normally directed at individuals rather than programs and activities.
However, some of OIG’s investigative actions are directed at preventing fraud and abuse
through improving the effectiveness of management and administrative controls and practices,
especially in high-risk areas. OIG also manages a HOTLINE to enable FCA employees and the
public to more easily report wrongdoing.

Legislative and Regulatory Review includes the review and comment on proposed and
existing legislation and regulations as they may affect the Agency or the OIG community. This
review activity is reported in the Semiannual Report to the Congress.

Outreach directs the OIG to focus attention to improving the Agency, the Inspectors General
community, and the public’s awareness of the FCA OIG’s role. This is accomplished by
promoting Agency understanding of the OIG’s role, providing leadership to organizations
contributing to the IG community, and by participating in special projects. The OIG also
develops educational information describing the roles and activities of the OIG and provides
information to the public through the OIG web site.

Other OIG Functions include internal policy direction and leadership and advice to the
Chairman and management about Agency programs and operations. The IG is also
responsible for fully informing the Chairman and the Congress about fraud and other serious
problems in Agency programs, including management’s progress in carrying out corrective
actions.

OIG’S MISSION AND IMPLICATIONS FOR STAFFING
It is the OIG’s mission that its work products and presence promote economy, efficiency, and
integrity in Agency operations. OIG will accomplish this by being a leader and catalyst
identifying Agency challenges and opportunities. We will strive to:
        •   deliver products and services that are competent, objective, timely and relevant;
        •   maintain a customer focus which is responsive to the needs of decision-makers; and


________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         22
        •    provide a positive working environment that encourages us to be innovative and
             reach our potential through teamwork and candid communication.

If we are to fulfill these statements, each staff member must broaden and refine their skills and
abilities, adopt a creative approach to problem solving, and take the initiative to influence
management.          In that way, management will be receptive to our conclusions and
recommendations. Staff must be supported through OIG management’s actions, equipment
and training, and mutual support from office teammates.

STAFFING ASSESSMENT AND STRATEGIES
OIG’s diverse responsibilities prescribed by the IG Act dictate the needed competencies within
the OIG staff. The independent nature of the OIG role also has implications for staffing. Even
with a very small staff, the OIG can deliver its products and services by maintaining a high level
of cross training and a broad base of expertise in audit, investigations, law, management, and
administration. The 4.60 FTEs in this plan constitute the critical mass necessary to credibly
perform OIG’s responsibilities. The OIG established the current staffing pattern after careful
analysis of the specialized nature of the OIG’s responsibilities and volume of work. Downsizing
over the years has reduced the OIG to a level at which any further reduction may adversely
affect the OIG’s accomplishment of its mission.

OIG staff performs evaluations and investigations under the general supervision of the IG.
These assignments are often unlike previous assignments and need creative thinking in
planning and developing the project, and mature judgment in developing conclusions and
recommendations and defending them before management.

The current OIG staff profile represents a high level of diversity. When filling future OIG
vacancies, we will make a concerted effort to attract a diverse pool of qualified candidates. We
share the Agency’s affirmative employment objectives and believe that a diverse staff is a
critical factor in the long-term success of an organization.

STAFFING OBJECTIVES AND STRATEGIES
Objectives
        •    Retain and refine the skills and competencies represented by the current staff profile.
        •    Employ the best-qualified applicant while ensuring the broadest possible pool of
             applicants.
        •    Cross-train all OIG staff to ensure each staff member can capably perform at least
             one OIG function as well as their primary staffing role.
        •    Increase effectiveness of collaboration among OIG staff members.
        •    Expand OIG staff participation in non-program activities of the Agency.

Strategies
        •    Staff will identify and participate in training and professional development activities
             identified in individual development plans to retain and enhance skills.
        •    Teamwork training will occur regularly to promote collaboration among OIG staff.
        •    Agency affirmative employment objectives will be considered in filling all OIG
             vacancies to achieve appropriate diversity.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         23
                                                                                      APPENDIX A


                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2009-2010
                              MANAGEMENT CHALLENGES

BACKGROUND
The Chairman understands the necessity for independent assessments by the OIG of significant
programs of the Agency. In this regard, the OIG has identified its audit/inspection focus areas,
or audit plan, in this SOPP.

MANAGEMENT CHALLENGES
This part of the SOPP highlights major challenges confronting the Agency as it works to fulfill its
mission. The OIG is required by statute to identify these challenges and present them in the
Agency’s Performance and Accountability Report. The OIG also presents them in Semiannual
Reports to the Congress, the most recent being as of March 31, 2008. Except for external
environmental challenges, they can be effectively addressed through concerted action by
Agency management.

                                         Farm Credit System
The System is a lender to a single industry, agriculture, and is therefore vulnerable to economic
swings in that industry. Nevertheless, the FCS remains sound in all material respects. Earnings
and capital levels have continued to strengthen, and asset quality remains high. The Agency’s
challenge is to continue to ensure the System’s ability to withstand this vulnerability through
effective examination and regulatory activities. The Agency’s regulatory attention must also
address other vulnerabilities in the System. Among these are scope of lending excesses and
risks associated with exposure to new enterprises, such as alternative fuel production and
System institutions’ “investments in rural America.”

                                     Farm Credit Administration
There continue to be many issues facing agriculture and rural America today that raise the
question of whether there should be modifications to the Farm Credit Act of 1971, as amended,
(Act) to enable the System to better serve agricultural and rural economies of the future.
Despite whether there are modifications to the Act, the Agency should anticipate that the
System will continue to seek broad regulatory interpretations. However, as a financial regulator,
FCA’s challenge is to continue to maintain an independent and objective, yet flexible and
responsive, regulatory environment for the System, geared to continually ensuring the FCS
fulfills its public policy purpose. Key to this for FCA is effective examination and regulation of
System institutions by maintaining a properly staffed and resourced Agency.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         24
                        The Next Possible Agricultural Economic Downturn
There are many factors in agriculture today that may indicate future serious difficulties for
agriculture and the FCS. For example,
    •   the System has been experiencing rapid growth for several years, which has had the
        effect of eroding the System’s capital to assets ratio;
    •   land values, which may not be sustainable, are high;
    •   the livestock sector is experiencing stress;
    •   there is volatility in commodity prices; and
    •   input costs, including fuel, are high.

While some sectors of agriculture are prospering and the Agency’s Office of Examination (OE)
reports that System institutions remain safe and sound, these indicators have also led the OE to
state that credit deterioration is likely and risks are rising.

Thus, a major challenge for the Agency is to ensure its ongoing ability to timely assess
economic and operational conditions affecting the welfare of the System’s borrowers and thus
System institutions, and to take preemptive or remedial actions to ensure the ongoing safety
and soundness of the System. The first line of preparedness for the Agency in accomplishing
this is an effective risk assessment and examination program, including the continual
assessment of the reliability of risk evaluation and examination findings, and the sufficiency of
its supervision and enforcement processes.

                                            Human Capital
In 2006, a five-year strategic human capital plan was completed. FCA’s challenge is to
continue to implement the human capital plan to ensure that FCA has the staff it needs to
effectively regulate a constantly evolving FCS. In meeting this challenge, the Agency should
continue to address the attrition of seasoned staff and ensure the viability of the examination
staff, a critical component of the Agency’s regulatory capability.

As the Agency moves farther into the human capital plan’s five-year cycle, the Agency must
critically assess the implementation of the current plan and, as the current plan nears
completion, establish a new five-year human capital plan based on current human capital
experience and future perceived human resource needs.

                                          Strategic Planning
In December 2003, the FCA Board adopted the Strategic Plan for Fiscal Years 2004–2009. The
next Agency strategic plan was not adopted by the FCA Board until May 2008. In accordance
with the Government Performance and Results Act of 1993 and Office of Management and
Budget Circular A-11, an updated and revised strategic plan is required within three years of
submitting a prior strategic plan.

Since the adoption of the 2008-2013 strategic plan, the FCA Board has a new Chairman. This
change in leadership and the likelihood of two new FCA Board Members prior to the next major
updating of the strategic plan will provide an opportunity and a challenge to ensure the then
FCA Board’s vision is timely incorporated into the next strategic plan.



________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         25
In 2005, the FCA Board established a Strategic Planning Committee (SPC) composed of
Agency staff to facilitate FCA Board input into the plan and the planning process. The SPC
should ensure the updating and issuance by the FCA Board of the next strategic plan,
presumably dated FY 2011-2016.

                                       Leveraging Technology
Information technology (IT) is a key element in management’s efforts to continually improve
Agency performance. The Agency is in the process of a major infrastructure transition designed
to promote efficient work processes and to provide staff with enhanced communication and
collaboration tools. The challenge is to stay abreast of emerging technologies and to establish
an IT infrastructure that provides FCA staff with IT tools and skills to operate in an efficient,
effective, and secure manner. In addition, the Agency must ensure that its technical staff has
the skills and knowledge to implement and maintain its infrastructure, and initiatives in this
regard are underway.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         26
                                                                                      APPENDIX B
                                                                                 (Revised September 4, 2008)




                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2009-2010
                                           AUDIT PLAN
AUDITS AND INSPECTIONS – FISCAL YEAR 2009 AND 2010
This audit plan identifies potential audit and inspection areas. This plan was discussed with the
Chairman to afford the Chairman the opportunity to comment and offer suggestions for
additional audit and inspection areas.
OIG audits and inspections provide assurance to the Chairman and FCA Board members that
programs are operating effectively with appropriate controls. Audit and inspection activities will
most likely be selected from the areas listed below. However, actual audits and inspections
conducted may vary in order to be responsive to changing needs or circumstances.


Annual Audits and Evaluations
Audit of FCA’s Financial Statements
The OIG contracts with an independent accounting firm to conduct an audit of FCA’s financial
statements, internal control over financial reporting, and compliance with laws and regulations
relating to the determination of financial statement amounts. The OIG will deliver an audit
opinion as of September 30, 2009 and 2010, respectively. The OIG has ensured that its
independent accounting firm has incorporated in its audit plan a work schedule that will provide
an appropriate audit scope and deliverables within appropriate time frames.

FISMA Evaluations
The FISMA requires agency program officials, Chief Information Officers and Inspectors
General to conduct annual reviews of the agencies’ information security programs and report
the results to the Office of Management and Budget. For 2009 and 2010, the OIG Senior
Information Technology Auditor will conduct the evaluation.

FY 2009
Office of Examination Travel Expenses
In FY 2006-2007 the Office of Examination reorganized. The new organizational structure
resulted in various teams being established. For each team, staff is not centrally located at one
particular field office but instead is dispersed throughout various OE field offices. We will
assess whether OE’s new organizational structure has impacted travel costs and any
implications.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         27
                                                                                      APPENDIX B
                                                                                 (Revised September 4, 2008)



Certification and Accreditation (C&A) Process

In 2008, FCA performed a C&A of its information technology infrastructure. Certification
involves a comprehensive assessment of the management, operational, and technical security
controls in an information system to determine the extent to which the controls are implemented
correctly, operating as intended, and producing the desired outcome with respect to meeting the
security requirements for the system. Certification results support the security accreditation
decision which represents the authorizing official’s acceptance of responsibility for the security
of the system and acceptance of risk to agency operations and assets, based on the
implementation of an agreed upon set of security controls. The objective of this audit is to
determine whether FCA’s C&A process was consistent with applicable federal laws, regulations,
and guidelines.

Government Credit Card Review
We will review employees’ use of travel and purchase cards, the Agency’s travel and purchase
card administration controls, and Agency actions in response to recommendations made in the
prior OIG purchase card inspection.

FY 2010
Evaluation of OE Training & Commissioning Program
The knowledge and skill level required to conduct sound examination and effective supervision
of System institutions needs to continually develop to keep pace with the changing financial
marketplace. We will review the adequacy of OE’s training and commissioning program in
equipping OE’s staff with the knowledge and skills needed to examine and supervise the myriad
of business practices and conditions found in System institutions.

Human Capital
An effective human capital program is essential to ensure the Agency has the right people with
the right skills to accomplish its mission. The objective of this audit will be to assess the
adequacy of the Agency’s human capital plan and the effectiveness of its implementation. This
includes an evaluation of Agency effectiveness in hiring and developing staff and of the
continuity of leadership within the Agency.

Review of Office Regulatory Policy Regulation Development Process
The Agency’s mission includes developing policy and regulations that guide FCS in advancing
its mission to serve the financial needs of agriculture and rural America in a safe and sound
manner. We will assess whether the policy and regulation development process complies with
all applicable Federal requirements and is efficient.

General Controls Review: Business Continuity
A well developed and tested business continuity plan ensures that agencies will be able to
continue to perform their essential functions during an emergency or disruption of normal
operations. We will evaluate the FCA’s ability to ensure continuity of operations during an
emergency or disruption of normal operation and to restore essential functions and activities.

________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         28
                                                                                      APPENDIX B
                                                                                 (Revised September 4, 2008)



General Control Reviews: Access Controls
Access controls are necessary to prevent authorized modification, disclosure, or loss of data.
We will evaluate access controls at FCA to ensure they provide reasonable assurance that
computer resources are protected against unauthorized access.


Beyond FY 2010
•   FCA Strategic Plan
•   Review of OE Organizational Structure and Work Processes
•   Controls for Safeguarding Personally Identifiable Information, including Social Security
    Numbers
•   Review of the Consolidated Reporting System
•   General Controls Reviews: Software Development and Change Control
•   General Controls Reviews: System Software
•   General Controls Reviews: Segregation of Duties
•   Efficiency of the OGC Legal Opinion Process
•   Borrower Complaint Handling
•   Adherence to the Government in the Sunshine Act
•   Telecommunication Costs and Services
•   Specialization and Certification




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FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                         29
                                                                                                           APPENDIX C

                                  Farm Credit Administration
                                  Office of Inspector General
                                    Fiscal Years 2009-2010

                                               IRM PLAN SUMMARY
IRM Budget         Object      FY 2009        FY 2010        FY 2011       FY 2012       FY 2013      FY 2014       Total Costs
Category           Code         Costs          Costs          Costs         Costs         Costs        Costs

Telephone &         2351         2,775             2,775         2,775         2,775        2,775         2,775         16,650
Communications
Services

Supplies            2611          30                    0           30               0         30               0           90

Subscriptions &     2612          200                200           200           200          200           200           1,200
Publications

Software            3152          500                500           500           500          500           500           3,000

IT Equipment        3162         1,120               240           320         1,040          320           240           3,280

                      Total     $4,625            $3,715        $3,825        $4,515       $3,825        $3715         $24,220




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FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                                                    30
                                                                                                       APPENDIX D
                            Farm Credit Administration
                            Office of Inspector General
                              Fiscal Years 2009-2010

             FY 2009 REVISED PRODUCTS AND SERVICES BUDGET
This represents the allocation of budget dollars and FTEs to OIG’s products and services.
Management, administrative support and leave are disbursed across the four products and
services.

 Products/Services                                         Budget            % Budget             FTE             % FTE
 Audits, Inspections, and Review Products                 $781,495                78%              3.59             78%

 Investigations                                            $60,115                 6%               .28               6%

 Legislation and Regulations Review                        $20,038                 2%               .09               2%
 Outreach                                                 $140,268                14%               .64             14%

                                             Total     $1,001,916               100%               4.60            100%

Audits, Inspections, and Review Products—The OIG issues approximately 5-10 reports per
year (including the annual FCA financial audit and FISMA review).               This includes
recommendations to Agency officials regarding improving the efficiency of Agency programs and
mission achievement. It also includes four survey reports regarding System institutions’ ratings
and comments about the Agency’s examination function.
Budget for FY 2009—$781,495 .................................................................................... 3.59 FTE
Investigative Function—Allegations received by the OIG are reviewed by testing information
provided to determine whether an investigation should be opened. Investigations are conducted
when appropriate. Maintaining the OIG HOTLINE and directing FCS borrower complaint or
inquiry issues to Agency components are additional functions of the investigative service.
Budget for FY 2009—$60,115 ....................................................................................... .28 FTE
Review and Comment on Proposed and Existing Legislation and Regulations—The OIG
reviews and comments on proposed and existing legislation and regulations affecting the Agency
and the IG community. Additionally, the OIG reviews, comments and responds to Congressional
and executive requests and inquiries.
Budget for FY 2009—$20,038 ...................................................................................... . .09 FTE
Outreach Program—The OIG educates FCA employees about OIG’s role within the Agency.
The OIG lends leadership to organizations directly contributing to the IG community. Through
involvement in special projects and workgroups, the OIG makes contributions for improving the
Agency and the OIG community. This includes but is not limited to: the Semiannual Report to
the Congress, participation in external activities such as membership on the ECIE and the CCIG,
and instructing at the IG Academy and various public and Government forums. We also
participate in Agency efforts, such as the Employee’s Council, Administrative Workgroup, and
Continuity of Operations Plan.
Budget for FY 2009—$140,268 .................................................................................... . .64 FTE

_______________________________________________ __________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                           31
                                                                                                      APPENDIX D

                           Farm Credit Administration
                           Office of Inspector General
                             Fiscal Years 2009-2010

          FY 2010 PROPOSED PRODUCTS AND SERVICES BUDGET
This represents the allocation of budget dollars and FTEs to OIG’s products and services.
Management, administrative support and leave are disbursed across the four products and
services areas.

 Products/Services                                         Budget            % Budget             FTE             % FTE
 Audits, Inspections, and Review Products                 $785,870               78%               3.59             78%
 Investigations                                             $60,452                6%               .28              6%
 Legislation and Regulations Review                         $20,151                2%               .09              2%
 Outreach                                                 $141,053               14%                .64             14%
                                              Total     $1,007,526              100%               4.60           100%

Audits, Inspections, and Review Products—The OIG issues approximately 5-10 reports per
year (including the annual FCA financial audit and FISMA review).               This includes
recommendations to Agency officials regarding improving the efficiency of Agency programs and
mission achievement. It also includes four survey reports regarding System institutions’ ratings
and comments about the Agency’s examination function.
Budget for FY 2010—$785,870 .................................................................................... 3.59 FTE
Investigative Function— Allegations received by the OIG are reviewed by testing information
provided to determine whether an investigation should be opened. Investigations are conducted
when appropriate. Maintaining the OIG HOTLINE and directing FCS borrower complaint or
inquiry issues to Agency components are additional functions of the investigative service.
Budget for FY 2010—$60,452 ...................................................................................... . .28 FTE
Review and Comment on Proposed and Existing Legislations and Regulations—The OIG
reviews and comments on proposed and existing legislation and regulations affecting the
Agency and the IG community. Additionally, the OIG reviews, comments and responds to
Congressional and executive requests and inquiries.
Budget for FY 2010—$20,151 ....................................................................................... .09 FTE
Outreach Program—The OIG educates FCA employees about OIG’s role within the Agency.
The OIG lends leadership to organizations directly contributing to the IG community. Through
involvement in special projects and workgroups, the OIG makes contributions for improving the
Agency and the OIG community. This includes but is not limited to: the Semiannual Report to
the Congress, participation in external activities such as membership on the ECIE and the
CCIG, and instructing at the IG Academy and various public and Government forums. We also
participate in Agency efforts, such as the Employee’s Council, Administrative Workgroup, and
Continuity of Operations Plan.
Budget for FY 2010—$141,053 ...................................................................................... .64 FTE
_______________________________________________ __________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2009-2010                                           32