OFFICE OF
INSPECTOR GENERAL
Strategic and Operating Performance Plan
Fiscal Years 2012-2013
Farm Credit Administration
Farm Credit Administrration 15
5 01 Farm Creedit Drive
MccLean, Virgin ia 22102-509
90
(703) 883-40000
August 22, 2011
The Honorable Lelan nd A. Strom, Chairman and Chief Exxecutive Offiicer
The Honorable Kenn neth A. Spea
arman, Board
d Member
The Honorable Jill Lo
ong Thomps son, Board Member
Farm Cre
edit Adminisstration
1501 Farrm Credit Drrive
McLean, Virginia 222102-5090
Dear Cha
airman Strom
m and FCA Board Memb
bers Spearm
man and Lon
ng Thompso
on:
The enclosed docum
ment is the Office of Insp
pector Generral’s (OIG) Strategic and
d Operating
Performa
ance Plan (S
SOPP) and Budgets for fiscal years 2 012 and 20 013.
The SOPPP includes the OIG’s au
udit plan, a fluid docume
ent that mayy be amende
ed as the yea
ar
progress
ses.
Please call me if you
u have any questions or comments.
Sincerely
y,
Carl A. Clinefelter
Inspector General
Enclosurre
TABLE OF CONTENTS
Page
Glossary of Terms............................................................................................................... 1
Introduction ......................................................................................................................... 2
Strategic and Operating Performance Plan ........................................................................ 4
Object Class Detailed Budget Overview ............................................................................. 12
FY 2012 – Revised Budget and Justifications ................................................................ 14
FY 2013 – Proposed Budget and Justifications ............................................................. 16
OIG Control System ............................................................................................................ 18
Audit Plan............................................................................................................................ 22
Appendices
Appendix A—IRM Plan Summary Report ...................................................................... 25
Appendix B—FY 2012-2013 Products and Services Budget ......................................... 26
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
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
System Farm Credit System
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 1
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
INTRODUCTION
The Farm Credit Administration (FCA or Agency) Office of Inspector General (OIG) was
established on January 29, 1989, as a result of the 1988 amendments to the Inspector General
Act of 1978, as amended (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 Board 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 the Agency’s 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 the FCA Board.
OIG’s FY 2012 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 FCA
Board 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 2012 budget submission, the OIG’s budget information
required to be highlighted is as follows:
The aggregate budget request for the OIG is $1,144,346.
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 2
The amount needed for OIG training is $19,390 (tuition).
The amount needed to support the Council of the Inspectors General on Integrity and
Efficiency (CIGIE) is $3,000.
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 3
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
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
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 4
measures. As a result, the OIG has ensured 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. The OIG will continue to ensure
that the FCA is ever mindful of its arm’s 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 2012-2013 5
4. Work with the Agency head (FCA Board) and Congress to improve program
management, and with the Inspectors General community and other related
organizations to address government-wide issues.
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 2012-2013 6
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS
AGENCY GOALS 1 AND 2
OIG GOAL PERFORMANCE MEASURES OUTCOME
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 FCA Board, suggested by the FCA 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 2012-2013 7
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS
AGENCY GOALS 1 AND 2
OIG GOAL PERFORMANCE MEASURES OUTCOME
2. Provide technical advice and The IG advises the FCA Board concerning policy FCA continues to receive an unqualified
assistance to Agency officials in direction 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 CIGIE.
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 8
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
INVESTIGATIONS
AGENCY GOALS 1 AND 2
OIG GOAL PERFORMANCE MEASURE OUTCOME
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 FCA Board 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 2012-2013 9
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
LEGISLATIVE AND REGULATORY REVIEW
AGENCY GOALS 1 AND 2
OIG GOAL PERFORMANCE MEASURE OUTCOME
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 2012-2013 10
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
OUTREACH PROGRAM
AGENCY GOALS 1 AND 2
OIG GOAL PERFORMANCE MEASURE OUTCOME
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 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.
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 11
Detailed Budget
Fiscal Years 2012 and 2013
SUB FTE 4.60 FTE 4.59
OBJECT CLASS OBJECT DESCRIPTION
CLASS FY 2012 FY 2013
1100 Total Personnel Compensation 1111 Permanent Full-Time $503,196 $505,082
1139 Other than Permanent Full-Time $308,974 $308,974
1161 Overtime $0 $0
1171 Performance, Incentives and Other Awards $5,000 $5,000
Subtotal $817,170 $819,056
1200 Total Personnel Benefits 1213 TSP Match $22,395 $22,432
1217 Disability Insurance Contributions $3,249 $3,256
121B Wellness, Flex-care/Life Cycle Programs $6,500 $6,500
1299 Benefits Generated from Payroll $176,564 $184,040
1236 Public Transportation Initiatives $0 $0
1237 Student Loan Repayments $0 $0
1224 Relocation Payments Under Object Code 1200 $0 $0
Subtotal $208,708 $216,228
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 $7,105 $10,125
2151 Relocation Travel Expenses $0 $0
2152 Relocation House Hunting $0 $0
Subtotal $13,105 $16,125
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 $2,000 $2,000
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 $764 $764
2371 Non-ADP Equipment Rental $0 $0
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 12
Detailed Budget
Fiscal Years 2012 and 2013
SUB FTE 4.60 FTE 4.59
OBJECT CLASS OBJECT DESCRIPTION
CLASS FY 2012 FY 2013
Rent, Communications, Utilities and Misc. Charges 2382 Postage – USPS $0 $0
continued 2384 Postage Meter Rental $0 $0
2385 Messenger and Courier Services $0 $0
Subtotal $3,444 $3,444
2400 Printing and Reproduction 2411 U.S. Government Printing Office (GPO) $0 $0
2431 Commercial Printers/Photographers $1,000 $1,000
2451 Publications of Notices/Classified Advertising $0 $0
Subtotal $1,000 $1,000
2500 Other Contractual Services 2511 Consulting Services $75,000 $75,000
2524 Miscellaneous Services $1,074 $1,424
2528 Training - Commercial $11,765 $4,555
2531 Services of Other Government Agencies $3000 $3300
2538 Training - Government $7,625 $11,910
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 $98,464 $96,189
2600 Supplies and Materials 2611 Supplies $1,085 $805
2612 Subscriptions, Publications and Training Materials $520 $1,120
2641 Fuel $0 $0
Subtotal $1,605 $1,925
3100 Equipment 3122 Non-IT Equipment, Furniture, Fixtures $0 $0
3152 Software $500 $500
3162 IT Equipment $150 $450
Subtotal $650 $950
4200 Insurance Claims and Indemnities 4211 Insurance Claims and Indemnities $0 $0
Subtotal $0 $0
TOTAL $1,144,346 $1,155,117
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 13
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
FY 2012 REVISED BUDGET AND JUSTIFICATIONS
TOTAL OFFICE BUDGET .......................................................................................... $1,144,346
Total approved IRM Plan amount included in Office Budget......................................... $6,399
1100 Personnel Compensation ................................................................................... $817,170
Amount required to fund salaries ($812,170) of OIG staff (4.60 Full Time Employees [FTE])
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 ............................................................................................. $208,708
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 ................................................................ $13,105
OIG staff will use these funds for travel ($7,105) 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 .......................................... $3,444
2351 Approved IRM Plan ................................................................................................. $680
2354 Approved IRM Plan ................................................................................................. $764
These funds will cover Smartphone voice, data, and tethering services for the IG ($764),
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 ($2,000) for a possible one-day OIG team building
exercise.
2400 Printing and Reproduction ..................................................................................... $1,000
Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the
items.
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 14
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
FY 2012 REVISED BUDGET AND JUSTIFICATIONS
2500 Other Contractual Services .................................................................................. $98,464
Tuition funds ($11,765) from non-government sources are for staff training. Government
tuition funds ($7,625) are for staff training at Government sponsored sources. Individual
training classes are a mandatory requirement of the Government Audit Standards (Yellow
Book) for auditors and of the bar association for the Counsel to the IG. Membership fees
($1,074) 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 ($50,000) and possible general contracting needs ($25,000).
Lastly, $3,000 is budgeted for the support of CIGIE.
2600 Supplies and Materials ........................................................................................... $1,605
2611 Approved IRM Plan ................................................................................................. $485
2612 Approved IRM Plan ................................................................................................. $220
To purchase miscellaneous reference books and training materials ($400), on-going
subscriptions in the IRM Plan ($220), one laptop carrying case ($125), and two laptop
batteries @$180 per battery ($360). General office supply funds ($500) are also included.
3100 Equipment .................................................................................................................. $650
3152 Approved IRM Plan ................................................................................................. $500
3162 Approved IRM Plan ................................................................................................. $150
Purchase desktop printer ($150) as necessary to support OIG programs, and an additional
$500 for software.
4200 Insurance Claims and Indemnities ............................................................................... $0
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 15
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
FY 2013 PROPOSED BUDGET AND JUSTIFICATIONS
TOTAL OFFICE BUDGET .......................................................................................... $1,155,117
Total approved IRM Plan amount included in Office Budget....................................... $17,669
1100 Personnel Compensation ................................................................................... $819,056
Amount required to fund salaries ($814,056) of OIG staff (4.59 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 ............................................................................................. $216,228
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 ................................................................ $16,125
OIG staff will use these funds for travel ($10,125) 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 .......................................... $3,444
2351 Approved IRM Plan ................................................................................................. $680
2354 Approved IRM Plan ................................................................................................. $764
These funds will cover Smartphone voice, data, and tethering services for the IG ($764),
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 ($2,000) for a possible one-day OIG team building
exercise.
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 16
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
FY 2013 PROPOSED BUDGET AND JUSTIFICATIONS
2400 Printing, Publications and Advertisement ............................................................ $1,000
Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the
items.
2500 Other Contractual Services .................................................................................. $96,189
Tuition funds ($4,555) from non-government sources are for staff training. Government tuition
funds ($11,910) are for staff training at Government sponsored sources. Individual training
classes are a mandatory requirement of the Yellow Book for auditors and of the bar
association for the Counsel to the IG. Membership fees ($1,424) 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 ($50,000) and possible general contracting needs ($25,000).
Lastly, $3,300 is budgeted for the support of CIGIE.
2600 Supplies and Materials ........................................................................................... $1,925
2611 Approved IRM Plan ................................................................................................. $205
2612 Approved IRM Plan ................................................................................................. $220
To purchase miscellaneous reference books and training material ($1,000), on-going
subscriptions in the IRM Plan ($220), one laptop battery ($180), and one Smartphone battery
($25). General office supply funds ($500) are also included.
3100 Equipment .................................................................................................................. $950
3152 Approved IRM Plan ................................................................................................. $500
3162 Approved IRM Plan ................................................................................................. $450
Purchase software as necessary to support OIG applications ($500) and replace desktop
printer as needed ($150), and replace Smartphone device as needed ($300).
4200 Insurance Claims and Indemnities ............................................................................... $0
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 17
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
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 FCA
Board 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 FCA
Board 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 FCA Board and the principal
spokesperson for the 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 Deputy Inspector General and 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 (IT) 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 IT 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 2012-2013 18
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. The OIG also provides input to the FCA Board 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.
The 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 the 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. The 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 FCA Board and the Congress about fraud and other serious
problems in Agency programs, including management’s progress in carrying out corrective
actions.
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 19
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. The 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.
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 2012-2013 20
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 2012-2013 21
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
AUDIT PLAN
AUDITS, INSPECTIONS, AND EVALUATIONS – FISCAL YEAR 2012 AND 2013
This audit plan identifies potential audit, inspection, and evaluation areas. This plan was
discussed with the FCA Board to afford the FCA Board the opportunity to comment and offer
suggestions for additional audit, inspection, and evaluation areas.
OIG audits, inspections, and evaluations provide assurance to the FCA Board 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, 2012 and 2013 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 2012 and 2013, the OIG Senior Information
Technology (IT) Auditor will conduct the FISMA evaluation at FCA.
FY 2012
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.
Information Technology Investments Performance Measures (Inspection)
The Agency has made significant IT 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
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 22
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.
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.
FY 2013
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.
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.
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.
Teleworking Program (Audit)
Telework is a work arrangement in which an employee performs their official duties at home or
other worksites geographically convenient to the employee’s residence. On December 9, 2010,
the President signed into law H.R. 1722, the “Telework Enhancement Act of 2010,” which
became Public Law 111‐292, aimed at increasing telework in the Federal government. As a
human capital initiative FCA offers a telework program that provides employees the opportunity
to perform their official duties at an alternate worksite, such as their home. Telework offers
numerous benefits including reducing traffic congestion, improving the quality of work life and
morale, and offering continuing operation during emergency events. The objective of this audit
will be to determine whether the Agency’s telework program is being effectively administered.
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 23
Beyond FY 2013
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
Specialization and Certification
Property Plant and Equipment Review
Delegations
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 24
APPENDIX A
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
IRM PLAN SUMMARY
Object FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
IRM Budget Category Total Costs
Code Costs Costs Costs Costs Costs
Telecommunications Rentals 2351 680 680 680 680 680 3,400
Wireless Communications 2354 764 764 764 764 764 3,820
Supplies 2611 485 205 485 205 485 1,865
Subscriptions and Publications 2612 220 220 220 220 220 1,100
Software 3152 500 500 500 500 500 2,500
IT Equipment 3162 150 450 150 450 150 1,350
Sub Total 2,799 2,819 2,799 2,819 2,799 14,035
Manpower Costs for three IRM Projects 3,600 14,850 5,850 5,850 5,850 36,000
Total 6,399 17,669 8,649 8,669 8,649 50,035
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 25
APPENDIX B
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
FY 2012 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 $926,920 81% 3.7 81%
Investigations $22,887 2% 0.1 2%
Legislation and Regulations Review $22,887 2% 0.1 2%
Outreach $171,652 15% 0.7 15%
Total $1,144,346 100% 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 2012—$926,920...................................................................................... 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 2012—$22,887....................................................................................... 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 2012—$22,887...................................................................................... . 0.1 FTE
Outreach Program—The OIG educates FCA employees about OIG’s role within the Agency.
The OIG lends leadership to organizations directly contributing to the IG community. Through
involvement in special projects and workgroups, the OIG makes contributions for improving the
Agency and the OIG community. This includes but is not limited to: the Semiannual Report to
the Congress, participation in external activities such as membership on 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 2012—$171,652..................................................................................... .0.7 FTE
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 26
APPENDIX B
Farm Credit Administration
Office of Inspector General
Fiscal Years 2012-2013
FY 2013 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 $935,645 81% 3.7 81%
Investigations $23,102 2% 0.1 2%
Legislation and Regulations Review $23,102 2% 0.1 2%
Outreach $173,268 15% 0.7 15%
Total $1,155,117 100% 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 2013—$935,645...................................................................................... 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 2013—$23,102...................................................................................... . 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 2013—$23,102....................................................................................... 0.1 FTE
Outreach Program—The OIG educates FCA employees about OIG’s role within the Agency.
The OIG lends leadership to organizations directly contributing to the IG community. Through
involvement in special projects and workgroups, the OIG makes contributions for improving the
Agency and the OIG community. This includes but is not limited to: the Semiannual Report to
the Congress, participation in external activities such as membership on 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 2013—$173,268...................................................................................... 0.7 FTE
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FCA OIG Strategic and Operating Performance Plan FY 2012-2013 27
FY 2012-2013
Published by the Farm Credit Administration, Office of Inspector General on 2011-08-22.
Below is a raw (and likely hideous) rendition of the original report. (PDF)