oversight

FY 2011-2012

Published by the Farm Credit Administration, Office of Inspector General on 2010-08-23.

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

OFFICE OF
INSPECTOR GENERAL



   Strategic and Operating Performance Plan
                      Fiscal Years 2011-2012




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




August 23, 2010


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 2011 and 2012.

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 Detailed Budget Overview............................................................................ Tab 4

  FY 2011 – Revised Budget and Justifications

  FY 2012 – Proposed Budget and Justifications


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


Audit Plan ......................................................................................................................... Tab 6


Appendices ....................................................................................................................... Tab 7

  Appendix A—Management Challenges

  Appendix B—IRM Plan Summary Report

  Appendix C—FY 2011-2012 Products and Services Budget

            Farm Credit Administration

            Office of Inspector General

              F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2

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

Agency            Farm Credit Administration

CIGIE             Council of the Inspectors General on Integrity and Efficiency

CCIG              Council of Counsels to Inspectors General

FCA               Farm Credit Administration

FCA Board         Farm Credit Administration Board

FCS               Farm Credit System

FISMA             Federal Information Security Management Act

FLETC             Federal Law Enforcement Training Center

FTE               Full Time Equivalent

FY                Fiscal Year

IDP               Individual Development Plan

IG                Inspector General (FCA)

IG Act            Inspector General Act of 1978, as amended

IRM               Information Resources Plan

IT                Information Technology

OE                Office of Examination

OIG               Office of Inspector General (FCA)

OMB               Office of Management and Budget

SOPP              Strategic Operating and Performance Plan

SPC               Strategic Planning Committee

System            Farm Credit System
                       Farm Credit Administration

                       Office of Inspector General

                         F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2


                                        INTRODUCTION
The Farm Credit Administration (FCA or Agency) Office of Inspector General (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 Agency for further submission to the Office of
Management and Budget (OMB).

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.

Further, the OIG conducts a quarterly confidential survey of Farm Credit System (FCS or
System) institutions regarding the effectiveness of the Agency’s examination function and the
examiners. The OIG issues a quarterly report and annual summary report on survey results to
the Chief Examiner and Chairman.

OIG’s FY 2011 Budget Request

Section 6(f)(1) of the IG Act requires an Inspector General to highlight certain aspects of the
Inspector General’s budget request to the head of the department or designated Federal entity
to which the Inspector General reports. Section 6(f)(2) requires, in the case of FCA, the
Chairman to highlight the same aspects of the Inspector General’s budget request when
transmitting the Agency’s budget to the President.

For the Inspector General’s revised FY 2011 budget submission, the OIG’s budget information
required to be highlighted is as follows:

    •   The aggregate budget request for the OIG is $1,096,891.



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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                          1
    •	 The amount needed for OIG training is $11,220 (tuition).

    •	 The amount needed to support the Council of the Inspectors General on Integrity and
       Efficiency is $2,840.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                          2
                       Farm Credit Administration

                       Office of Inspector General

                         F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2

            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 and from regulatory evolution since that time. The FCS
       and the credit needs of rural America will continue to evolve and change. The financial
       and banking industry will become a different provider of financial services coming out of
       the current financial services industry crisis. 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 2011-2012                                          3
        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 affecting the Agency.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                          4
    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.
            •	 Agency personnel understand and accept OIG’s role within FCA and the
               Inspectors General community.
            •	 OIG staff provide leadership to organizations directly contributing to the
               Inspectors General community.
            •	 OIG staff contribute to special projects for improving the Agency, the Inspectors
               General community, and the Federal government.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                          5
                                                          Farm Credit Administration

                                                          Office of Inspector General

                                                            F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2



                            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
                                                                                                                    Agency compliance with laws, regulations, and
                                                       and issue draft reports will not exceed 6 months.
                                                                                                                    internal policies and procedures.
                                                       Audits are constructive. Where audit products contain
                                                                                                                    The Agency’s stature and reputation are
                                                       recommendations to improve Agency operations, the
                                                                                                                    maintained at a high level in the eyes of the
                                                       Agency accepts at least 80% of the OIG audit
                                                                                                                    Congress, the Administration, the FCS, FCA
                                                       recommendations.
                                                                                                                    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.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                                                                                        6
                                                          Farm Credit Administration

                                                          Office of Inspector General

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                            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.
           programs and operations.

     3.	   Continuous improvement in OIG               OIG training ensures the technical proficiency of staff.   The OIG’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
                                                                                                                  Council of the Inspectors General on Integrity
                                                                                                                  and Efficiency (CIGIE).




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                                                                                      7
                                                          Farm Credit Administration

                                                          Office of Inspector General

                                                            Fiscal Years 2011-2012

                                                                          INVESTIGATIONS
                                                                AGENCY GOALS 1 AND 2

                     OIG GOAL                                      PERFORMANCE MEASURE                                            OUTCOME/IMPACT
      1.	 Effectively investigate alleged            Investigative reports are timely and presented in an             Administrative action, convictions or pleas are
          administrative and criminal                objective and factual manner. Memoranda are issued to            obtained for employees and/or contractors
          violations relating to FCA                 management describing internal control weaknesses or             found guilty of wrongdoing.
          programs and personnel.                    program deficiencies found during the investigative process
                                                                                                                      Management actions taken against employees
                                                     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.	 Educate employees on their                 Allegations of wrongdoing are supported by specific              Investigations are more successful because
          responsibility to report                   information as required by the OIG.                              they are initiated in a timelier manner and have
          wrongdoing to the OIG.                                                                                      better information.
                                                                                                                      FCA employees are more willing to report real
                                                                                                                      or suspected wrongdoing because they trust
                                                                                                                      the competence, fairness and confidentiality of
                                                                                                                      OIG’s investigations.
      3.	 Provide relevant information on            Summaries of investigations and the resulting                    The Chairman and the Congress are better
          results of investigative activities to     administrative or judicial actions taken are incorporated into   informed about OIG investigations, and
          appropriate parties.                       the Semiannual Report to the Congress, along with any            administrative and judicial consequences.
                                                     disagreements on the actions taken or failure of
                                                                                                                      Public confidence in the integrity of FCA
                                                     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.


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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                                                                                           8
                                                          Farm Credit Administration

                                                          Office of Inspector General

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                                                      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.                                                                       documents.
                                                       Constructive comments on relevant documents are
                                                       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.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                                                                                       9
                                                          Farm Credit Administration

                                                          Office of Inspector General

                                                            Fiscal Years 2011-2012


                                                                     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,
                                                                                                                   CIGIE, Council of Counsels to the Inspectors
                                                                                                                   General (CCIG), and Federal Law Enforcement
                                                                                                                   Training Center (FLETC) 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 2011-2012                                                                                                     10
                                                                Office of Inspector General - Unit 700000

                                                                             Detailed Budget

                                                                       Fiscal Years 2011 and 2012

                                                                  SUB                                                                  FTE 4.59    FTE 4.60
                      OBJECT CLASS                                                           OBJECT DESCRIPTION
                                                                 CLASS                                                                 FY 2011     FY 2012



 1100    Total Personnel Compensation                             1111      Permanent Full-Time                                         $477,687    $475,857
                                                                  1139      Other than Permanent Full-Time                              $308,543    $308,543
                                                                  1161      Overtime                                                          $0          $0
                                                                  1171      Performance, Incentives and Other Awards                      $5,000      $5,000
                                                                                                                            Subtotal    $791,230    $789,400
 1200    Total Personnel Benefits                                 1213      TSP Match                                                    $21,319     $21,284
                                                                  1217      Disability Insurance Contributions                            $3,145      $3,138
                                                                  121B      Wellness, Flex-care/Life Cycle Programs                       $6,500      $6,500
                                                                  1299      Benefits Generated from Payroll                             $165,818    $171,359
                                                                  1236      Public Transportation Initiatives                                 $0          $0
                                                                  1237      Student Loan Repayments                                           $0          $0
                                                                  1224      Relocation Payments Under Object Code 1200                        $0          $0
                                                                                                                            Subtotal    $196,782    $202,281
 1300    Benefits Former Personnel                                1302      Unemployment Compensation                                         $0          $0
                                                                                                                            Subtotal          $0          $0
 2100    Travel and Transportation of Persons                     2121      Local Travel                                                  $6,000      $6,000
                                                                  2199      Temporary Duty Travel                                        $11,130      $7,705
                                                                  2151      Relocation Travel Expenses                                        $0          $0
                                                                  2152      Relocation House Hunting                                          $0          $0
                                                                                                                            Subtotal     $17,130     $13,705
 2200    Transportation of Things                                 2211      Freight and Express Mail                                          $0          $0
                                                                  2212      Freight and Express Mail - Contract Mail Services               $200        $200
                                                                  2251      Transportation of Household Goods                                 $0          $0
                                                                                                                            Subtotal        $200        $200
 2300    Rent, Communications, Utilities and Misc. Charges        2321      Rent/Lease - Space Lodging                                    $1,500      $1,500
                                                                  2331      Utilities - Other than Telephone and Comm. Svcs.                  $0          $0
                                                                  2341      ADP Equipment and Software Rental                                 $0          $0
                                                                  2351      Telephone and Communication Services                           $680        $680
                                                                  2354      Wireless Communication Services                                $840        $840
                                                                  2371      Non-ADP Equipment Rental                                          $0          $0


____________________________________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                                                                                 11
                                                                Office of Inspector General - Unit 700000

                                                                             Detailed Budget

                                                                       Fiscal Years 2011 and 2012

                                                                  SUB                                                                    FTE 4.59     FTE 4.60
                      OBJECT CLASS                                                           OBJECT DESCRIPTION
                                                                 CLASS                                                                   FY 2011      FY 2012


         Rent, Communications, Utilities and Misc. Charges        2382      Postage - USPS                                                      $0           $0
            continued                                             2384      Postage Meter Rental                                                $0           $0
                                                                  2385      Messenger and Courier Services                                    $100         $100
                                                                                                                             Subtotal       $3,120       $3,120
 2400    Printing and Reproduction                                2411      U.S. Government Printing Office (GPO)                               $0           $0
                                                                  2431      Commercial Printers/Photographers                                 $500         $500
                                                                  2451      Publications of Notices/Classified Advertising                      $0           $0
                                                                                                                             Subtotal         $500         $500
 2500    Other Contractual Services                               2511      Consulting Services                                            $72,840      $72,840
                                                                  2524      Miscellaneous Services                                          $2,239       $2,239
                                                                  2528      Training - Commercial                                           $6,055       $9,765
                                                                  2531      Services of Other Government Agencies                               $0           $0
                                                                  2538      Training - Government                                           $5,165       $6,825
                                                                  2541      Renovating Office Space                                             $0           $0
                                                                  2571      Operation/Maintenance - Non ADP Equipment                           $0           $0
                                                                  2572      Operation/Maintenance - ADP Equipment/Software                      $0           $0
                                                                  2591      Storage of Household Goods                                          $0           $0
                                                                                                                             Subtotal      $86,299      $91,669
 2600    Supplies and Materials                                   2611      Supplies                                                          $720         $840
                                                                  2612      Subscriptions, Publications and Training Materials                $220         $220
                                                                  2641      Fuel                                                                $0           $0
                                                                                                                             Subtotal         $940       $1,060
 3100    Equipment                                                3122      Non-IT Equipment, Furniture, Fixtures                               $0           $0
                                                                  3152      Software                                                          $500         $500
                                                                  3162      IT Equipment                                                      $190         $150
                                                                                                                             Subtotal         $690         $650
 4200    Insurance Claims and Indemnities                         4211      Insurance Claims and Indemnities                                    $0           $0
                                                                                                                             Subtotal           $0           $0
                                                                                                                                 TOTAL   $1,096,891   $1,102,585




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                                                                                    12
                           Farm Credit Administration

                           Office of Inspector General

                             F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2


                 FY 2011 REVISED BUDGET AND JUSTIFICATIONS
TOTAL OFFICE BUDGET ........................................................................................$1,096,891

   Total approved IRM Plan amount included in Office Budget ......................................$10,200


1100 Personnel Compensation .................................................................................$791,230

Amount required to fund salaries ($786,230) of OIG staff (4.60 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 ($5,000) are also allocated for
possible cash awards.

1200 Personnel Benefits............................................................................................$196,782

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

1300 Benefits for Former Personnel ................................................................................... $0



2100 Travel and Transportation of Persons ...............................................................$17,130

OIG staff will use these funds for travel ($11,130) related to scheduled IDP training and local
travel ($3,000) 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 for express mail services throughout the year.

2300 Rent, Communications, Utilities, and Miscellaneous .........................................$3,120

   2351 Approved IRM Plan .............................................................................................. $680

   2354 Approved IRM Plan .............................................................................................. $840

These funds will cover BlackBerry™ voice, data, and tethering service for the IG ($840),
telecommuters’ access expense ($360), and maintenance of an independent internet account
for the anonymous HOTLINE account ($320). 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.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       13
                             Farm Credit Administration

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                 FY 2011 REVISED BUDGET AND JUSTIFICATIONS

2400 Printing and Reproduction ..................................................................................... $500

Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the
items.

2500 Other Contractual Services ................................................................................$86,299

Tuition funds ($6,055) from non-government sources are for staff training. Government tuition
funds ($5,165) 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
($2,239) will cover the dues for professional organizations to which OIG staff belong.
Consulting services are utilized to assist OIG staff in the review of programs, including the
FCA financial statement audit ($45,000) and possible general contracting needs ($25,000).
Lastly, $2,840 is budgeted for the support of CIGIE.

2600 Supplies and Materials ........................................................................................... $940

    2611 Approved IRM Plan .............................................................................................. $120

    2612 Approved IRM Plan .............................................................................................. $220

To purchase miscellaneous reference books ($100) as well as on-going subscriptions in the
IRM Plan ($220), one BlackBerry™ replacement battery ($30), and one laptop battery ($90).
General office supply funds ($500) are also included.

3100 Equipment ............................................................................................................... $690

    3152 Approved IRM Plan .............................................................................................. $500

    3162 Approved IRM Plan .............................................................................................. $190

Purchase desktop printer ($150) as necessary to support OIG programs, one BlackBerry™
replacement device ($40), and an additional $500 for software.

4200 Insurance Claims and Indemnities............................................................................. $0





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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       14
                           Farm Credit Administration

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               FY 2012 PROPOSED BUDGET AND JUSTIFICATIONS
TOTAL OFFICE BUDGET ........................................................................................$1,102,585

   Total approved IRM Plan amount included in Office Budget ......................................$10,280


1100 Personnel Compensation .................................................................................$789,400

Amount required to fund salaries ($784,400) of OIG staff (4.60 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 ($5,000) are also allocated for
possible cash awards.

1200 Personnel Benefits............................................................................................$202,281

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

1300 Benefits for Former Personnel ................................................................................... $0



2100 Travel and Transportation of Persons ...............................................................$13,705

OIG staff will use these funds for travel ($7,705) related to scheduled IDP training and local
travel ($3,000) 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 for express mail services throughout the year.

2300 Rent, Communications, Utilities, and Miscellaneous .........................................$3,120

   2351 Approved IRM Plan .............................................................................................. $680

   2354 Approved IRM Plan .............................................................................................. $840

These funds will cover BlackBerry™ voice, data, and tethering service for the IG ($840),
telecommuters’ access expense ($360), and maintenance of an independent internet account
for the anonymous HOTLINE account ($320). 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.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       15
                             Farm Credit Administration

                             Office of Inspector General

                               F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2


                FY 2012 PROPOSED BUDGET AND JUSTIFICATIONS

2400 Printing, Publications and Advertisement............................................................. $500

Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the
items.

2500 Other Contractual Services ................................................................................$91,669

Tuition funds ($9,765) from non-government sources are for staff training. Government tuition
funds ($6,825) 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 ($2,239) will cover the dues for
professional organizations to which OIG staff belong.
Consulting services are utilized to assist OIG staff in the review of programs, including the
FCA financial statement audit ($45,000) and possible general contracting needs ($25,000).
Lastly, $2,840 is budgeted for the support of CIGIE.

2600 Supplies and Materials .........................................................................................$1,060

   2611 Approved IRM Plan............................................................................................... $240

    2612 Approved IRM Plan .............................................................................................. $220

To purchase miscellaneous reference books ($100), on-going subscriptions in the IRM Plan
($220), one laptop battery ($90), and one laptop carrying case ($150). General office supply
funds ($500) are also included.

3100 Equipment ............................................................................................................... $650

    3152 Approved IRM Plan .............................................................................................. $500

    3162 Approved IRM Plan .............................................................................................. $150

Purchase software as necessary to support OIG applications ($500) and replace desktop
printer as needed ($150).

4200 Insurance Claims and Indemnities............................................................................. $0





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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       16
                       Farm Credit Administration

                       Office of Inspector General

                         F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2

                                  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. This is staffed as a
permanent full-time position.

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. This is staffed as a permanent full-time
position.

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.



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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       17
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
the quarterly and annual reports on the OIG Survey of FCS institutions regarding the Agency’s
examination function. This is staffed as a permanent full-time position.

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 contractors 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. 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.




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       18
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

        •	 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.


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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       19
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.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       20
                       Farm Credit Administration

                       Office of Inspector General

                         F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2

                                           AUDIT PLAN
AUDITS, INSPECTIONS, AND EVALUATIONS – FISCAL YEAR 2011 AND 2012
This audit plan identifies potential audit, inspection, and evaluation areas. This plan was
discussed with the Chairman to afford the Chairman the opportunity to comment and offer
suggestions for additional audit, inspection, and evaluation areas.
OIG audits, inspections, and evaluations provide assurance to the Chairman and FCA Board
members that programs are operating effectively with appropriate controls. Audit, inspection,
and evaluation activities will most likely be selected from the areas listed below. However,
actual audits, inspections, and evaluations conducted may vary in order to be responsive to
changing needs or circumstances.


Annual Audits and Evaluations

Audit of FCA’s Financial Statement
The OIG contracts with an independent accounting firm to conduct an audit of FCA’s financial
statement, 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, 2011 and 2012 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.

Federal Information Security Management Act (FISMA) Evaluations
FISMA requires the agency program officials, Chief Information Officers and Inspectors General
to conduct annual evaluations of their respective department’s or agency’s information security
program and report the results to OMB. For FYs 2011 and 2012, the OIG Senior Information
Technology Auditor will conduct the FISMA evaluation at FCA.

FY 2011
FCA Approval Process of Funding Corporation Debt Issuances (Inspection)
The Farm Credit System Banks utilize the Federal Farm Credit Banks Funding Corporation to
issue, market, and handle Farm Credit Debt Securities. Subject to Farm Credit Administration
approval, the Funding Corporation has the responsibility for establishing the amounts,
maturities, rates of interest, terms, and conditions of participation by the System Banks in each
issuance of Farm Credit Debt Securities. The objective of the inspection will be to assess
whether FCA’s approval process for Funding Corporation debt issuances is operating efficiently
and effectively and in compliance with applicable guidelines.




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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       21
Travel Expenses (Survey)
OIG will conduct a survey of FCA employees’ travel expenses to determine whether further
evaluation of controls, efficiencies or savings may be realized.

Improper Payments (Inspection)
The Improper Payments Elimination and Recovery Act (IPERA) was signed into law on July 22,
2010. The law updates and amends two previously enacted laws related to the prevention and
recapture of improper payments. Inspectors General are responsible for determining whether
their department or agency is in compliance with seven requirements of the law and submitting
an annual report to the head of their department or agency, the Government Accountability
Office, the Senate Committee on Homeland Security and Government Affairs, and the House
Committee on Oversight and Government Reform.

Inappropriate Use of Agency IT Resources (Inspection)
There has been increasing concern regarding Federal employees’ use of government
equipment and official time to view inappropriate internet sites. Viewing and downloading from
inappropriate web sites with an Agency computer could result in a significant misuse of official
Agency resources, loss of productivity, and a potentially hostile work environment. In addition,
there is a security risk for the Agency due to malware commonly found on such websites. We
will assess FCA’s controls to prevent and detect use of Agency computers to view and
download inappropriate material from the internet.


FY 2012
Human Capital (Audit)
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.

Consulting and Other Services (Audit)
Consulting and other services are the Agency’s second largest expense after salaries and
benefits and significantly increased by 48 percent from FY 2007 ($2,629,472) to FY 2010
($3,891,546). We will evaluate the reasons for this increased reliance on contractors and
oversight of contracted activities.

Evaluation of OE Training & Commissioning Program (Audit)
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.




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       22
IT Investments Performance Measures (Inspection)
The Agency has made significant information technology investments such as Live Meeting,
Microsoft Communicator, and High Definition videoconferencing. As the Agency continues to
invest in technology to improve operations, measures need to be in place to ensure these
investments are being fully utilized and projected benefits realized. We will determine whether
the Agency has developed effective performance measures to capture the benefit of IT
investments.

General Control Review: Access Controls (Audit)
Access controls are necessary to prevent authorized modifications, 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 2012
    •	 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 Control Reviews: Software Development and Change Control
    •	 General Control Reviews: System Software
    •	 General Control Reviews: Segregation of Duties
    •	 Efficiency of the Office of the General Counsel Legal Opinion Process
    •	 Telecommunication Cost and Services
    •	 Specialization and Certification
    •	 Property Plant and Equipment Review
    •	 Delegations




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                       23
                                                                                      APPENDIX A

                       Farm Credit Administration

                       Office of Inspector General

                         F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2

                              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, 2010. Except for external
environmental challenges, they can be effectively addressed through concerted action by
Agency management.

                                         Farm Credit System
Safety and Soundness
The System is a lender to a single industry, agriculture, and is therefore vulnerable to the
economic volatility and risks in that industry. While the FCS remains generally safe and sound,
adversity in several major commodity groups has caused deterioration in a number of FCS
institutions. The Agency’s challenge is to continue to ensure the System’s ability to withstand
such vulnerabilities and remain safe and sound in the long-term.


Mission
The environment facing agriculture, rural America, and the institutions of the FCS is ever-
changing, presenting new opportunities and altering historical perspectives on System
operations. 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.


                                     Farm Credit Administration
Agricultural Economic Downturn
There are many factors in agriculture today that have caused deterioration in a number of FCS
institutions and may cause continued stress for FCS institutions. For example,
      •	 the System has experienced rapid growth for several years, which has had the effect
         of eroding the System’s capital to assets ratio;


_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                        24
      •	 large shared assets among many System institutions are experiencing serious
         difficulty;
      •	 several major commodity groups are experiencing extreme stress;
      •	 asset quality at many associations and several Farm Credit banks has deteriorated;
         and
      •	 land values, which may not be sustainable, are high.

Thus, a challenge for the Agency is to ensure its ongoing ability to timely assess economic and
operational conditions affecting the welfare of 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 examination and risk
assessment program. Aligned with this is the challenge for the Agency to effectively and timely
utilize its enforcement authorities. When significant deterioration in a System institution(s) is
first evident, the Agency should expeditiously consider implementing appropriate rehabilitative
enforcement measures.


Agency Governance
In early FY 2010, the FCA Board received two new members, filling out the FCA Board’s
statutory three-person complement. One new member came on the FCA Board in October
2009 and the other in March 2010. This reemphasizes the need for the Chairman and Agency
staff to ensure an environment in which new members may quickly learn their duties and
responsibilities, and the mission and functioning of the Agency and the System. The Board
member arriving in October 2009 received a newly implemented orientation program. The
challenge for the Agency is to formalize and institutionalize an effective orientation and ongoing
training program for FCA Board members. This should enable FCA Board members to readily
become knowledgeable about Agency and System operations and issues, and be able to
properly focus Agency resources through, for example, the strategic planning mechanism.


Strategic Planning
Since the adoption in May 2008 of the strategic plan for FYs 2008-2013, the FCA Board has a
new Chairman and two new FCA Board Members. This change in Board leadership and the
two new FCA Board Members provide an opportunity and a challenge to ensure the vision of
the newly constituted FCA Board is timely incorporated into the next strategic plan.

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 6-year strategic plan
covering FYs 2011-2016.


Human Capital
In 2006, a 5-year strategic human capital plan was completed spanning FYs 2007-2011. The
Agency has adopted a strategy of annually updating the plan, resulting in a moving 5-year plan.
The plan is comprehensive and, because of the ongoing updating, reflective of current human
capital issues facing the Agency. For example, in addressing the attrition of seasoned staff, the
Agency has been actively recruiting and hiring at both the entry and midcareer-levels,


_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                        25
particularly as it pertains to ensuring the ongoing capability of examination staff. FCA’s
challenge is to continue to emphasize, implement, and update the human capital plan to ensure
FCA has the staff it needs to effectively regulate a constantly evolving FCS, as managing
human capital is an ever-present and evolving necessity. This is particularly important as it
applies to the training and commissioning program for newly hired entry and midcareer-level
examination staff.


Leveraging Technology
The Agency’s ability to leverage investments in new technologies is a key element in
management’s efforts to continually improve Agency performance by increasing the efficiency
and effectiveness of operations. The Agency has an active information resource management
planning process that identifies, reviews, and prioritizes new IT initiatives that will improve
Agency operations. Over the past couple of years, the Agency made significant investments in
new technologies and began implementing several tools that improve communication,
collaboration, and efficiency of operations. FCA’s challenge is to take full advantage of the new
capabilities the IT infrastructure provides. The successful implementation of new technologies
will provide FCA staff with the IT tools and skills that will enable the Agency to:

      •	 improve the quality and availability of data without creating an undue burden on the
         FCS;
      •	 streamline business processes and enhance communication and collaboration to
         improve the effectiveness of how FCA interacts with the FCS, the public, and business
         partners;
      •	 build business intelligence that will provide decision makers with timely management
         information;
      •	 develop an electronic recordkeeping and knowledge management capability that
         effectively manages electronic data, documents, and reports; and protect FCA
         information systems and data from increasing external and internal threats.




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                        26
                                                                                                                          APPENDIX B

                                             Farm Credit Administration

                                             Office of Inspector General

                                               F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2


                                                         IRM PLAN SUMMARY
                                  Object       FY 2011       FY 2012       FY 2013       FY 2014       FY 2015       FY 2016
       IRM Budget Category                                                                                                       Total Costs
                                  Code          Costs         Costs         Costs         Costs         Costs         Costs

    Telecommunications Rentals     2351              680           680           680           680           680           680         4,080

    Wireless Communications        2354              840           840           840           840           840           840         5,040

    Supplies                       2611              120           240           120           240           120           240         1,080

    Subscriptions and
                                   2612              220           220           220           220           220           220         1,320
    Publications

    Software                       3152              500           500           500           500           500           500         3,000

    IT Equipment                   3162              190           150           190           150           190           150         1,020

                                 Sub Total        $2,550        $2,630        $2,550        $2,630        $2,550        $2,630       $15,540

    Manpower Costs for three
                                    NA             7,650         7,650         4,950          4,950        4,950         4,950        35,100
    IRM Projects

                                     Total       $10,200       $10,280        $7,500        $7,580        $7,500        $7,580       $50,640




__________________________________________________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                                                                   27
                                                                                                    APPENDIX C
                           Farm Credit Administration

                           Office of Inspector General

                             F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2


            FY 2011 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               $888,482                81%               3.7             81%

 Investigations                                           $21,938                2%               0.1              2%

 Legislation and Regulations Review                       $21,938                2%               0.1              2%

 Outreach                                               $164,533                15%               0.7             15%

                                            Total     $1,096,891              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 2011—$888,482 ....................................................................................3.7 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 2011—$21,938 ..................................................................................... 0.1 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 2011—$21,938 ..................................................................................... 0.1 FTE





____________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                            28
                                                                                                    APPENDIX C

                           Farm Credit Administration

                           Office of Inspector General

                             F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2


            FY 2011 REVISED PRODUCTS AND SERVICES BUDGET

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 CIGIE and the CCIG,
and instructing at FLETC 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 2011—$164,533 ....................................................................................0.7 FTE





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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                            29
                                                                                                    APPENDIX C


                           Farm Credit Administration

                           Office of Inspector General

                             F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2


          FY 2012 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                $893,094               81%               3.7            81%
 Investigations                                           $22,052                2%               0.1              2%
 Legislation and Regulations Review                       $22,052                2%               0.1              2%
 Outreach                                                $165,387               15%               0.7            15%
                                             Total     $1,102,585             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 2011—$893,094 ....................................................................................3.7 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 2011—$22,052 ..................................................................................... 0.1 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 2011—$22,052 ..................................................................................... 0.1 FTE





____________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                            30
                                                                                                   APPENDIX C


                           Farm Credit Administration

                           Office of Inspector General

                             F i s c a l Y e a r s 2 0 1 1 - 2 0 1 2


          FY 2012 PROPOSED PRODUCTS AND SERVICES BUDGET

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 CIGIE and the CCIG,
and instructing at FLETC 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 2011—$165,387 ....................................................................................0.7 FTE





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FCA OIG Strategic and Operating Performance Plan FY 2011-2012                                            31