oversight

FY 2017-2018

Published by the Farm Credit Administration, Office of Inspector General on 2016-09-14.

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

Office of
Inspector General
Farm Credit Administration



                             Strategic and Operating
                                Performance Plan

                             FISCAL YEARS 2017-2018
Farm Credit Administration                                     Office of Inspector General
                                                               1501 Farm Credit Drive
                                                               McLean, Virginia 22102-5090




September 14, 2016



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

Dear Board Chairman Spearman and Board Members Tonsager and Hall:

The enclosed document is the Office of Inspector General’s (OIG) Strategic and Operating
Performance Plan (SOPP) and Budgets for fiscal years 2017 and 2018.

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

Please call me if you have any questions or comments.

Sincerely,



Elizabeth M. Dean
Inspector General

Enclosure
                                               TABLE OF CONTENTS



                                                                                                                                 Page

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

Introduction ....................................................................................................................... 2

Strategic and Operating Performance Plan ....................................................................... 4

OIG Goals, Performance Measures, and Outcomes ......................................................... 6

Detailed Budget ................................................................................................................ 11
  FY 2017 Budget and Justifications ............................................................................... 13
  FY 2018 Proposed Budget and Justifications ............................................................... 15

OIG Control System .......................................................................................................... 17

Audit Plan ......................................................................................................................... 20

Appendix A – FY 2017-2018 Products and Services Budget ............................................. 25
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

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

Agency                          Farm Credit Administration

CCIG                            Council of Counsels to Inspectors General

CIGIE                           Council of the Inspectors General on Integrity and Efficiency

FCA                             Farm Credit Administration

FCA Board                       Farm Credit Administration Board

FCS                             Farm Credit System

FISMA                           Federal Information Security Modernization Act of 2014

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 Management

IT                              Information Technology

OE                              Office of Examination

OIG                             Office of Inspector General (FCA)

OMB                             Office of Management and Budget

OSMO                            Office of Secondary Market Oversight

SOPP                            Strategic Operating and Performance Plan

System                          Farm Credit System

_______________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                          1
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

                                        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 establishes 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 Congress.

The OIG’s primary goals are to assist the Agency in fulfilling its public mission for agriculture
and rural areas through timely and proactive oversight; and to be a vanguard in deterring waste,
fraud and abuse. The OIG therefore analyzes Agency performance through risk-based
performance audits, inspections, and evaluations, and provides recommendations and
conclusions 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 and conducts extensive outreach,
both within the Agency and externally. We provide information and training to Agency
employees on OIG activities and reporting responsibilities. We participate in a leadership role in
organizations that directly contribute across the OIG community on government-wide issues.
We maintain an updated OIG website (at http://www.fca.gov/home/inspector.html) that includes
all publicly released OIG reports, summaries of investigations, and information relating to
whistleblower protection.

The OIG contracts with and oversees the work of an independent public 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’s Senior Information Technology (IT) Auditor conducts the annual evaluation of the
Agency’s compliance with the Federal Information Security Modernization Act of 2014 (FISMA)
and issues a report submitted to the Agency for further submission to the Office of Management
and Budget (OMB). The OIG also provides reports responsive to Congressional requests for
data, and in August of 2016, OIG submitted a report to Congress in response to the
requirements of the Cybersecurity Act of 2015.

The OIG maintains a Hotline, operating 24/7 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.
Whistleblowers are afforded full rights in accordance with law.

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




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      2
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

                                        INTRODUCTION

OIG’S FY 2017 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 FY 2017 budget submission, the OIG’s budget information required
to be highlighted is as follows:

    •   The aggregate budget request for the OIG is $1,563,324.
    •   The amount needed for OIG training is $23,069.
    •   The amount to support the Council of the Inspectors General on Integrity and Efficiency
        is $4,510.


OIG AND THE FARM CREDIT ADMINISTRATION’S STRATEGIC
GOALS
The strategic goals of the Farm Credit Administration are:

    •   Goal 1 — Ensure that the FCS and Farmer Mac fulfill their public missions for
        agriculture and rural areas.

    •   Goal 2 — Evaluate risk and provide timely and proactive oversight to ensure the
        safety and soundness of the System and Farmer Mac.

    •   Goal 3 — Cultivate an environment that fosters a well-trained, motivated, and
        diverse staff while providing an effective plan for leadership succession.

The OIG’s strategic goals are designed to work in conjunction with these Agency goals. The
OIG’s goals allow the Inspector General’s office to perform its statutory oversight mission and in
doing so, assist the Agency in fulfilling its oversight mission and public missions for agriculture
and rural areas.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      3
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

            STRATEGIC AND OPERATING PERFORMANCE PLAN

                                             MISSION
        The mission of FCA’s OIG is to be an agent of positive change, striving for continual
        improvement in FCA’s management and program operations.

                                         CORE VALUES
    •   Integrity – Straightforward, objective and balanced reporting of condition, cause, criteria
        and effect, 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’s skills, shared services through CIGIE, when
        appropriate, and contracted 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 risk-based
        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. The FCA Board composition, as well as FCA staff, continue to
        change. This year the term of the Chairman expired, although by law, the Chairman can
        stay in place until a successor is appointed. With the pending Presidential election, there
        likely will be additional appointments, possibly of a Chairman and/or an FCA Board
        Member. During 2016, creation and realignment of some offices within FCA has taken
        place. With that has come additional hiring, different methodologies and practices, and
        reorganization resulting in continuous change and opportunities for OIG to validate
        improvements. Projections indicate new staff hires and retirements will continue to be
        more numerous compared to prior years. The FCS and the credit needs of rural America
        will continue to evolve in complexity as institutions merge and develop credit products
        and data systems and analytics. At the same time, the credit picture is impacted by
        global affairs as well as commodity and real estate pricing. There is an expected gradual
        downturn in agriculture although the FCS is well-positioned with sufficient capital to
        withstand some stressful times. As the financial and banking industries continue to

________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      4
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

            STRATEGIC AND OPERATING PERFORMANCE PLAN
        become more complex and data driven, the Agency’s methodology in achieving its
        mission must also evolve as the Agency cultivates an environment to foster a well-
        trained, motivated, and diverse staff. OIG also will continue to evolve and remain vigilant
        over Agency performance and internal controls.
    •   Changing work environment. As FCA leverages technology to improve its processes,
        the OIG will be positioned to evaluate new and ongoing risks in internal controls and
        security measures. The OIG will ensure its expertise keeps pace with changes in
        technology, laws, regulations, and guidance impacting vital business areas including:
        fraud, financial reporting, internal controls, and information technology. Joint projects,
        initiated through CIGIE’s efforts to increase cross-cutting projects and reports, will mean
        staff participation with the IG community experts. Data analytics and security will
        continue to evolve and be areas of emphasis within the OIG community and host
        agencies.
    •   Limited budget resources. Budget pressures on the OIG will be similar to those faced
        by FCA as a whole. The OIG will have to continue to use an efficient mix of its core
        competencies and external resources to fulfill its mission. Data explosion, access, and
        technology will continue to cause change in processes and our approach to work.
    •   Farm Credit Act and the Farm Credit System. Changes in the agricultural and
        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 support the System’s continued service to rural America in
        good times and in bad. With mergers, investments, global and credit conditions and
        changes in governance, risk based examination continues to become a more complex
        challenge to ensure the safety and soundness of the FCS. OIG will continue to
        contribute by evaluating and making recommendations for positive change to help the
        Agency fulfill its agriculture and rural area public missions.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      5
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

       OIG GOALS, PERFORMANCE MEASURES, AND OUTCOMES




                OIG STRATEGIC GOALS

                   Goal 1:
                                                                  Goal 2:
           Audit, Inspect,                                      Investigate
             Evaluate


                                Goal 3: Outreach


OIG Goal 1 — Audit, inspect, and evaluate the Agency’s programs
and operations to assist the Agency in fulfilling its oversight mission
more efficiently and effectively.
OIG Goal 2 — Investigate alleged wrongdoing to detect and deter
fraud, waste, abuse, and mismanagement in Agency programs and
operations and to address Congressional, public, and employee
concerns.
OIG Goal 3 — Review and make recommendations regarding existing
and proposed legislation and regulations and provide other outreach
to support the Agency’s oversight mission and the Inspector General
community on government-wide issues.


________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      6
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

        OIG GOALS, PERFORMANCE MEASURES, AND OUTCOMES

OIG Goal 1 — Audit, inspect, and evaluate the Agency’s programs
and operations to assist the Agency in fulfilling its oversight mission
more efficiently and effectively.

    •   Performance Measures – Audit, Inspection, Evaluation:
           o Average time to complete products will not exceed six months.
           o Conduct annual audit planning based on Agency mission, risk, activities, and
              management.
           o Make constructive recommendations as necessary to management. Track
              recommendation status on a monthly basis until closure.
           o Agency accepts the majority of OIG audit, inspection, and evaluation
              recommendations.
           o Track mandated reviews with associated timeframes in an OIG workflow and
              review the document annually for updates.
           o Engage in monthly communication with FCA Board on matters of policy,
              priorities, and risks to the Agency.
           o Annually address the top management challenges facing the Agency.

    •   Performance Measures – Quality Control, Professional Standards, and Training:
           o Issue annual internal quality assurance report to ensure compliance with
              professional standards and office policies and procedures.
           o Conduct an annual assessment of training needs for staff to maintain and
              enhance competency and professional development.
           o 100 percent of OIG reports will be indexed and referenced before issuance.
           o All OIG employees will attend annual ethics training.
           o All OIG employees will track training and education on an annual basis to fulfill or
              meet professional standards.

OUTCOMES:

    •   OIG’s audit, inspection, and evaluation goal is key to the OIG’s statutory mission, as it is
        designed to assist the Agency in fulfilling its oversight mission more efficiently and
        effectively. Thus, OIG's ability to facilitate positive change within the Agency is enhanced
        by the high quality and strong credibility of OIG products and advice. Positive change in
        the form of more effective FCA programs and operations results from OIG audit,
        inspection, and evaluation reports and recommendations that contribute to Agency
        management decisions and actions by helping the Agency recognize risk and develop
        better and more informed business practices. Related peer review reports confirm the
        OIG audit program meets or exceeds quality audit standards prescribed by the U.S.
        Government Accountability Office and the Council of Inspectors General on Integrity and
        Efficiency (CIGIE).


________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      7
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

        OIG GOALS, PERFORMANCE MEASURES, AND OUTCOMES

    •   OIG’s oversight of an independent contractor’s audit of the Agency’s annual financial
        statement promotes a better understanding of the Agency’s financial processes,
        systems, and controls. It also helps the Agency continue to receive unmodified financial
        audits by examining compliance with generally accepted accounting principles.

    •   Timely publication of OIG’s audit, evaluation, inspection, and other reports promotes a
        better understanding of the Agency's programs and operations, including OIG work that
        examines the Agency’s compliance with laws, regulations, policies, and procedures. As
        a result, the Agency's stature and reputation are enhanced and maintain a heightened
        status from multiple perspectives, including those of the Congress, Administration, FCA
        employees, and the public.


OIG Goal 2 — Investigate alleged wrongdoing to detect and deter
fraud, waste, abuse, and mismanagement in Agency programs and
operations and to address Congressional, public, and employee
concerns.

    •   Performance Measures – Investigations and Hotline:
            o Evaluate all FCA OIG hotline calls, emails, and other inquiries within two
               business days of receipt.
            o Annually budget for and maintain a hotline from an independent source.
            o Track the status of allegations and investigations on a monthly basis to ensure
               timely actions.
            o Publish brief summaries, without attribution, of closed OIG investigations on the
               OIG website within 10 business days of the closing of the investigation and
               related referrals.
            o Educate Agency employees on recognizing and reporting fraud, waste, abuse,
               and mismanagement by providing at least two Agency-wide educational
               initiatives, such as FCA newsletters.
            o Within 10 business days, report to the U.S. Department of Justice on
               investigations as required by the IG Act.
            o Report monthly on Congressional requests and meetings with members of
               Congress and their staffs.

OUTCOMES:

    •   OIG’s investigations of alleged fraud, waste, abuse, and mismanagement in Agency
        programs and operations reflect OIG’s commitment to independence, integrity, and
        professionalism. By making referrals to the Agency, U.S. Department of Justice, and
        other officials as appropriate, OIG works to ensure action is taken to pursue civil,

________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      8
                          Farm Credit Administration
                          Office of Inspector General
                            Fiscal Years 2017-2018

            OIG GOALS, PERFORMANCE MEASURES, AND OUTCOMES
            administrative, or criminal actions. These referrals and resulting management actions
            serve as deterrent to future wrongdoing. In addition, FCA employees are also more
            willing to report real or suspected wrongdoing because they trust the competence,
            fairness, and confidentiality of OIG’s investigations. OIG’s Hotline also promotes
            reporting on wrongdoing by proving a mechanism through which the public and
            employees can report wrongdoing 24-hours a day, and also request confidentiality,
            further encouraging reporting that leads to investigations and/or audit or other OIG
            reviews.

    •       OIG’s public release of brief summaries of closed investigations (without attribution) also
            serves as a deterrence against wrongdoing. These public notices confirm the
            effectiveness and responsive nature of OIG’s investigations program, as well as OIG’s
            commitment to transparency. Moreover, OIG’s related advisories to the Agency on
            systemic issues and increased risks identified during the course of some investigations,
            heightens both public confidence in the integrity of FCA programs and oversight
            operations by assisting the Agency in strengthening its internal policies, procedures, and
            controls.


OIG Goal 3 — Review and make recommendations regarding existing
and proposed legislation and regulations and provide other outreach
to support the Agency’s oversight mission and the Inspector General
community on government-wide issues.

        •    Performance Measures – Legislation and Regulations:
                o Track, on a monthly basis, reviews of proposed regulations, legislation, and
                   other guidance provided to the OIG.
                o Issue the OIG Semiannual Report to Congress within 30 days of the end of
                   each reporting period.
                o Post any OIG report to be publicly released, on OIG’s website not later than
                   three business days after publication.
                o Within five business days of release, provide notice of published OIG reports
                   through OIG’s email subscription.

        •    Performance Measures – Outreach:
                o Inform Agency employees on operations of the OIG at least 12 times a year.
                o Make proactive contact at least twice a year to inform stakeholders about the
                   value of our work and our ideas for oversight.
                o Participate in at least one or more CIGIE committees and work groups.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      9
                       Farm Credit Administration
                       Office of Inspector General
                         Fiscal Years 2017-2018

        OIG GOALS, PERFORMANCE MEASURES, AND OUTCOMES

             o   Conduct a quarterly confidential survey of Farm Credit System (FCS or System)
                 institutions regarding the effectiveness of the Agency’s examination program.
             o   Issue a quarterly report and annual summary report on the survey results.
             o   Establish an electronic system – “Ask the IG” – through which Agency
                 employees can query the OIG on its mission, statutory authority, and activities,
                 by end of fiscal year.


OUTCOMES:

    •   OIG focuses on its statutory mission to make recommendations on legislation,
        regulations, and other policy positions. In doing so, OIG contributes to the efficiency and
        economy of the Agency’s oversight mission. OIG’s constructive criticism and creative
        alternatives improve the quality and usefulness of proposals, and also result in increased
        Agency management requests for OIG advice, audit work, and other assistance.

    •   OIG participates in government-wide initiatives and activities through organizations such
        as the CIGIE, its Executive Council and its Legislative Committee; Association of
        Government Accountants; Federal Audit Executive Committee; Institute of Internal
        Auditors; CIGIE Training Institute; and Council of Counsels to the Inspectors General.
        These entities and the Agency benefit greatly from OIG’s leadership and efforts, and the
        OIG thereby enhances its status in the IG community.

    •   OIG outreach activities that promote a better understanding of the OIG and its statutory
        mission include OIG’s reporting in its semiannual reports to the Congress on the OIG’s
        mission accomplishments, including OIG’s investigations, audits, evaluations, and
        proposed legislative, regulatory, and other policy initiatives. Other educational outreach
        activities that further more widespread understanding of OIG activities and operations
        include the OIG’s annual participation in the Agency’s new employee orientation;
        publication of information and summaries in Agency newsletters; and in providing
        Agency briefings and/or training on various topics, including fraud awareness. OIG
        evaluates feedback on its outreach activities received from Agency employees and
        others, including queries and suggestions received through the OIG’s electronic
        suggestion box, “Ask the IG,” and both responds to queries and also works to improve
        the programs accordingly.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                     10
                                 Farm Credit Administration
                                 Office of Inspector General
                                   Fiscal Years 2017-2018

                                                    DETAILED BUDGET


Object Classification                                                                                                       FY 2017 FY 2018
1100 Total Personnel Compensation                        111001 Permanent Full-Time                                          $657,689   $672,181
                                                         113009 Other than Permanent Full-Time                               $417,218   $417,218
                                                         115201 Overtime                                                          $0         $0
                                                         115301 Performance, Incentives and Other Awards                       $4,000     $4,000
                                                                                                                 Subtotal $1,078,907 $1,093,399
1200 Total Personnel Benefits                            121103 TSP Match                                                     $42,997    $43,577
                                                         121107 Disability Insurance Contributions                                $0         $0
                                                         121110 Wellness, Flex-care/Life Cycle Programs                           $0         $0
                                                         129999 Benefits Generated from Payroll                              $296,616   $310,874
                                                         121206 Public Transportation Initiatives                                 $0         $0
                                                         121207 Student Loan Repayments                                           $0         $0
                                                         121599 Relocation Payments Under Object Code 1200                        $0         $0
                                                                                                                 Subtotal    $339,613   $354,451
1300 Benefits Former Personnel                           130002 Unemployment Compensation                                         $0         $0
                                                                                                                 Subtotal         $0         $0
2100 Travel and Transportation of Persons                210112 Local Travel                                                  $10,970    $10,970
                                                         210199 Temporary Duty Travel                                          $3,000     $3,000
                                                         210402 Relocation Travel Expenses                                        $0         $0
                                                         210403 Relocation House Hunting                                          $0         $0
                                                                                                                 Subtotal     $13,970    $13,970
2200 Transportation of Things                            220101 Freight and Express Mail                                        $200       $200
                                                         220102 Freight and Express Mail - Contract Mail Services                 $0         $0
                                                         220201 Transportation of Household Goods                                 $0         $0
                                                                                                                 Subtotal       $200       $200
2300 Rent, Communications, Utilities and Misc. Charges   232001 Rent/Lease - Space Lodging                                        $0         $0
                                                         233101 Utilities - Other than Telephone and Comm. Services               $0         $0
                                                         233201 ADP Equipment and Software Rental                                 $0         $0
                                                         233301 Telephone and Communication Services                              $0         $0
                                                         233304 Wireless Communication Services                                $1,040     $1,040
                                                         233401 Non-ADP Equipment Rental                                          $0         $0
                                                         233501 Postage – USPS                                                    $0         $0
                                                         233504 Messenger and Courier Services                                    $0         $0
                                                                                                                 Subtotal      $1,040     $1,040
2400 Printing and Reproduction                           240101 U.S. Government Printing Office (GPO)                             $0         $0
                                                         240201 Commercial Printers/Photographers                               $400       $400
                                                         240301 Publications of Notices/Classified Advertising                    $0         $0
                                                                                                                 Subtotal       $400       $400




  ________________________________________________________________________________________________________
  FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                                                             11
                              Farm Credit Administration
                              Office of Inspector General
                                Fiscal Years 2017-2018

                                        DETAILED BUDGET


Object Classification                                                                                      FY 2017 FY 2018
2500 Other Contractual Services            251001 Consulting Services                                       $100,000   $100,000
                                           252004 Miscellaneous Services                                      $2,619     $2,619
                                           252007 Training - Commercial                                      $14,000    $11,000
                                           253001 Services of Other Government Agencies                       $4,510     $3,010
                                           253005 Training - Government                                       $6,450     $6,450
                                           254001 Renovating Office Space                                        $0           $0
                                           257101 Operation/Maintenance - Non ADP Equipment                      $0           $0
                                           257102 Operation/Maintenance - ADP Equipment/Software                 $0           $0
                                           257202 Storage of Household Goods                                     $0           $0
                                                                                                Subtotal    $127,579   $123,079
2600 Supplies and Materials                260101 Supplies                                                     $500       $500
                                           260102 Subscriptions, Publications and Training Materials           $220           $0
                                           260201 ADP Supplies                                                 $245       $245
                                           260301 Fuel                                                           $0           $0
                                                                                                Subtotal       $965       $745
3100 Equipment                             310902 Non-IT Equipment, Furniture, Fixtures                          $0           $0
                                           310202 Software                                                     $500       $500
                                           310302 IT Equipment                                                 $150       $150
                                                                                                Subtotal       $650       $650
4200 Insurance Claims and Indemnities      420001 Insurance Claims and Indemnities                               $0           $0
                                                                                                Subtotal         $0           $0
                                                                                                 TOTAL $1,563,324 $1,587,934




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                                         12
                           Farm Credit Administration
                           Office of Inspector General
                             Fiscal Years 2017-2018

                                               FY 2017 BUDGET


 TOTAL OFFICE BUDGET ...................................................................................... $1,563,324
    Total approved IRM Plan amount included in Office Budget ...................................... $2,155

 1100 Personnel Compensation ............................................................................ $1,078,907
 Amount required to fund salaries ($1,074,907) of OIG staff 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 ($4,000) are also allocated for possible cash
 awards.

 1200 Personnel Benefits .......................................................................................... $339,613
 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 ............................................................. $13,970
 OIG staff will use these funds for travel ($8,470) related to scheduled Individual Development
 Plans (IDP) training and local travel ($2,500) 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 ....................................... $1,040
    233301 Approved IRM Plan ....................................................................................... $1,040
    233304 Approved IRM Plan .............................................................................................. $0
 These funds will cover telecommuters’ access expense ($720), 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.

 2400 Printing, Publications and Advertisement ........................................................... $400
 Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the
 items.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                                           13
                            Farm Credit Administration
                            Office of Inspector General
                              Fiscal Years 2017-2018

                                                 FY 2017 BUDGET



 2500 Other Contractual Services ........................................................................... $127,579
 Tuition funds ($14,000) from non-government sources are for staff training. Government
 tuition funds ($6,450) 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 IG and Counsel. Membership fees ($2,619) 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 ($56,260) and possible general contracting needs ($43,740).
 Lastly, $4,510 is budgeted for the support of CIGIE.

 2600 Supplies and Materials ..........................................................................................$965
    260102 Approved IRM Plan .........................................................................................$220
    260201 Approved IRM Plan .........................................................................................$245
 To purchase on-going subscriptions in the IRM Plan ($220), one laptop carrying case ($125),
 and one laptop battery ($120). General office supply funds ($500) are also included.

 3100 Equipment ..............................................................................................................$650
     310202 Approved IRM Plan .........................................................................................$500
     310302 Approved IRM Plan .........................................................................................$150
 Purchase software as necessary to support OIG applications ($500), and one replacement
 desktop printer or office fax machine, if needed ($150).
 4200 Insurance Claims and Indemnities .......................................................................... $0




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                                                14
                           Farm Credit Administration
                           Office of Inspector General
                             Fiscal Years 2017-2018

                                   FY 2018 PROPOSED BUDGET


 TOTAL OFFICE BUDGET ...................................................................................... $1,587,934
    Total approved IRM Plan amount included in Office Budget ...................................... $1,935

 1100 Personnel Compensation ............................................................................ $1,093,399
 Amount required to fund salaries ($1,089,399) of OIG staff 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 ($4,000) are also allocated for possible cash
 awards.

 1200 Personnel Benefits .......................................................................................... $354,451
 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 ............................................................. $13,970
 OIG staff will use these funds for travel ($8,470) related to scheduled IDP training and local
 travel ($2,500) 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 ....................................... $1,040
    233301 Approved IRM Plan ....................................................................................... $1,040
    233304 Approved IRM Plan .............................................................................................. $0
 These funds will cover telecommuters’ access expense ($720), 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.

 2400 Printing, Publications and Advertisement ........................................................... $400
 Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the
 items.




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                                           15
                             Farm Credit Administration
                             Office of Inspector General
                               Fiscal Years 2017-2018

                                     FY 2018 PROPOSED BUDGET


 2500 Other Contractual Services ............................................................................ $123,079
 Tuition funds ($11,000) from non-government sources are for staff training. Government
 tuition funds ($6,450) 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 IG and Counsel. Membership fees ($2,619) 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 ($57,870) and possible general contracting needs ($42,130).
 Lastly, $3,010 is budgeted for the support of CIGIE.

 2600 Supplies and Materials ........................................................................................... $745
    260201 Approved IRM Plan .......................................................................................... $245
 To purchase one laptop carrying case ($125), and one laptop battery ($120). General office
 supply funds ($500) are also included.

 3100 Equipment ............................................................................................................... $650
     310202 Approved IRM Plan .......................................................................................... $500
     310302 Approved IRM Plan .......................................................................................... $150
 Purchase software as necessary to support OIG applications ($500), and one replacement
 desktop printer or office fax machine, if needed ($150).

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




________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                                                 16
                         Farm Credit Administration
                         Office of Inspector General
                           Fiscal Years 2017-2018

                                    OIG CONTROL SYSTEM

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

Deputy IG/Counsel to the IG provides managerial, policy direction and leadership in concert with
the IG, OIG staff, Congress, CIGIE and other agencies. As counsel, she provides independent legal
advice, analysis of proposed legislation and regulations, and legal sufficiency reviews. The Counsel
also represents and defends the OIG in all legal issues; participates in inspections and evaluations
as necessary; and directs OIG’s investigative function.

The two Senior Auditor positions are devoted primarily to performance audits, inspections, and
management analyses, focusing on the significant management challenges of the Agency. Also,
these positions oversee the contractor performing the annual financial, internal control, and
compliance audit of the Agency on behalf of the OIG.

A Senior Information Technology Auditor 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
evaluation.

The Management/Program Analyst is responsible for performing audits and inspections in
addition to administrative duties, such as assisting the IG in budgeting, information resources
planning, procurement, and training. 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.

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



_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         17
                         Farm Credit Administration
                         Office of Inspector General
                           Fiscal Years 2017-2018

                                    OIG CONTROL SYSTEM

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 Advisories and Observations.

The auditors are devoted full time to audits and inspections. The Management/Program Analyst and
the Deputy IG/Counsel to the IG 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
Agency programs. The Deputy IG/Counsel directs the investigation operations. Investigations are
distinguished from other evaluations in that they are normally focused on individuals rather than
programs and activities. However, occasionally 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.

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. OIG’s legislative and regulatory reviews involve 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.

A key OIG outreach program is the OIG’s ongoing survey of FCS institutions regarding the quality
and consistency of the Agency’s examination function, including the examiners’ performance. This
survey asks responding FCS institutions, without attribution, to provide specific ratings on the
Agency’s examination activities, communications, and FCA regulations and guidance. Respondents
also are asked to identify what aspects of the examination were the most and least helpful to the
FCS institution’s board and management team. The Agency uses these survey results to obtain
more informed oversight of both the quality of the examiners and the examination function. To date,
the consistent trend indicated the examination program and staff are well regarded.

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.



_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         18
                         Farm Credit Administration
                         Office of Inspector General
                           Fiscal Years 2017-2018

                                    OIG CONTROL SYSTEM

OIG’S MISSION AND IMPLICATIONS FOR STAFFING
It is the OIG’s mission to produce work and activity to 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 this mission, 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
this 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
The 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
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. Continuous training and professional development activities are therefore important,
especially as the OIG’s six 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, the size and complexity of the
Agency’s mission, and volume of work.

OIG staff perform 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 complexity of the OIG’s work also requires effective
collaboration among OIG staff members. This is accomplished through a close and informed
working relationship among the staff. We hold regular staff meetings and emphasize office
communication.

When filling future OIG vacancies, we will continue to make a concerted effort to attract a diverse
pool of qualified candidates. We share the Agency’s employment objectives and strongly believe
that a diverse staff is a critical factor in the long-term success of an organization. Employment
objectives will be considered in filling all OIG vacancies to achieve appropriate diversity and
inclusion.




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         19
                         Farm Credit Administration
                         Office of Inspector General
                           Fiscal Years 2017-2018

                                             AUDIT PLAN
This audit plan identifies potential audit, inspection, and evaluation areas. This plan is based on a
risk-based approach. The FCA Board is afforded 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 audit 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, 2017 and 2018 respectively. The OIG has ensured that its independent accounting firm has
incorporated into its audit plan a work schedule that will provide an appropriate audit scope and
deliverables within appropriate timeframes.

Federal Information Security Modernization Act of 2014 (FISMA) Evaluation
FISMA requires Inspectors General to conduct an annual evaluation of their respective agency’s
information security program and report the results to OMB. For FYs 2017 and 2018, the OIG
Senior IT Auditor will lead the FISMA evaluation at FCA.

FY 2017
Procurement/Contracting
In order to fulfill mission requirements, FCA needs to procure and/or contract for certain goods and
services. However, FCA must ensure its procurement and contracting activities are performed by
qualified personnel and through appropriate methods and procedures that result in efficient and
effective use of Agency resources. The objective of the audit will be to determine whether FCA is
utilizing an effective and efficient procurement and contracting process.

FCA’s Performance of IT Security Examinations at System Institutions
One of FCA’s strategic goals is to evaluate risk and provide timely and proactive oversight to
ensure the safety and soundness of the System. FCA uses a risk-based approach to examine the
use of information technology at System institutions. The objective of this audit is to evaluate the
Agency’s examination process as it relates to the oversight of IT security at System institutions.




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         20
                         Farm Credit Administration
                         Office of Inspector General
                           Fiscal Years 2017-2018

                                             AUDIT PLAN
FCA Peer Review of Federal Election Commission OIG Audit Operations
Government Auditing Standards require audit organizations that perform audits or attestation
engagements to undergo an external peer review every three years. The OIG staff will conduct the
Federal Election Commissions’ external peer review. We will review the system of quality control for
the audit organization.

Review of FCA’s Awards Program
FCA acknowledges and recognizes employee contributions though an awards program that
includes various types of awards such as achievement or special act awards, on-the-spot cash
awards, and peer to peer awards. The inspection will determine if FCA is following policies and
procedures and has adequately implemented controls over the awards program.

401k Plan
FCA implemented a supplemental 401k retirement savings plan in 2015. The Agency automatically
contributes one percent of employees’ salary to the 401(k) plan, with matching employee
contributions up to two percent more. The plan applies equally to all employees, regardless of
which retirement system an employee is under (e.g., FERS, CSRS), although vesting time periods
vary. The objective of this audit is to determine whether the new plan was implemented and is being
managed effectively and efficiently.

Follow-up Audit on Travel and Purchase Cards
In accordance with charge card program guidance and regulations, the OIG completes an annual
risk assessment as part of our ongoing efforts in the charge card area. In 2014, the OIG completed
audits on the travel and purchase card programs to determine whether FCA’s oversight was
effective. The Agency agreed to eight recommendations on the travel card program and four
recommendations for the purchase card. The objective of this audit is to determine whether the
Agency improved and remains vigilant over the charge card programs.

FCA’s Internal Control Process
Federal managers should effectively manage risks the Agency faces toward achieving strategic
objectives and arising from its activities and operations. The OMB issued a revision of OMB Circular
A-123 to modernize existing efforts by requiring the implementation of an Enterprise Risk
Management (ERM) capability. The objective of this audit is to determine if the Agency has an
adequate internal control program and evaluate the Agency’s progress toward an ERM capability.

FCA’s Communications Process
FCA communicates with numerous internal and external contacts on important issues. It is essential
for the Agency to follow an efficient, consistent, and timely communication process. A part of
government-wide communication efforts was the Plain Writing Act of 2010, which calls for writing
that is clear, concise, and well-organized. The objective of this inspection is to evaluate the
Agency’s communication efforts, including the Plain Writing Act.



_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         21
                         Farm Credit Administration
                         Office of Inspector General
                           Fiscal Years 2017-2018

                                             AUDIT PLAN
Email Configuration, Security, and Records Management
By December 31, 2016, Federal agencies must manage all email records in an electronic format
that supports records management and litigation requirements. During 2016, FCA migrated to a
cloud-based email system. This audit has two objectives. The first objective is to evaluate the
configuration and security settings for the new cloud-based email system. The second objective is
to evaluate the agency’s records management system for email.

Pathways Program
The Pathways Program provides for federal internships and meaningful training and career
development opportunities. The objective of this audit is to evaluate the Agency’s implementation
of, and reliance on, the Pathways Program in recruiting for internships and career opportunities.

FCA’s Approval Process for Mergers of System Institutions
The Farm Credit Act provides banks and associations in the System with the power to merge which
must be approved by the FCA Board. The System continues to consolidate, resulting in an increase
in size and complexity of FCS institutions. The objective of this audit is to review FCA’s regulations,
policies, procedures, and process related to merger applications to ensure safety and soundness
for the System.

Physical Security
Physical security poses a continuous challenge for Federal agencies, including access to facilities
and security measures taken to protect employees and agency property. The objective of this
inspection is to evaluate physical security measures being taken in FCA headquarters and field
offices and compliance with applicable Federal laws, regulations, and contract requirements.

FY 2018
Criminal Referral Process and Follow-Up
By Federal regulation (12 C.F.R. § 612.2301), FCS institutions are required to provide notification
and information to the FCA and appropriate law enforcement authorities or to the U.S. Department
of Justice where a criminal violation is suspected involving an institution’s assets, operations, or
affairs. The objective of this review would be to evaluate the effectiveness of this process.

EDGe System
One of the actions in FCA’s strategic plan is to invest in technology and modern examination and
analysis tools. As part of these efforts, FCA initiated a multi-year project, broken into four phases, to
develop a fully redesigned examination program and documentation system, known as EDGe. FCA
has identified the EDGe system as a high priority for the Agency. The objective of this audit is to
determine if FCA has effectively monitored and implemented the EDGe system project.




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         22
                         Farm Credit Administration
                         Office of Inspector General
                           Fiscal Years 2017-2018

                                             AUDIT PLAN
Farmer Mac Data Collection Project
This project was implemented to electronically collect, store, and use Farmer Mac data. Improving
this manual process will make Farmer Mac data submissions more efficient and allow FCA to
conduct more oversight and examination work off-site. The objective of this audit is to determine
whether the Farmer Mac Data Collection Project is effectively administered.

Implementation of the Student Loan Repayment Program and New Employee Benefits
During the announcement of the 2016 compensation program, the Agency also announced the
approval a new Student Loan Repayment Program intended to further FCA’s ability to recruit and
retain a diverse group of colleagues. In addition to this program, new employees also receive
benefits when onboarding at FCA. The objective of this audit is to determine whether the Agency
has effectively implemented the new Student Loan Repayment Program and to evaluate the
benefits given to new employees.

Stress Testing
Stress testing provides a method for quantifying risk based on assumptions or factors that could
impact the operating environment over the planning horizon. This portfolio management tool is
important in planning for unfavorable outcomes and implementing appropriate controls. FCA has
emphasized the importance of stress testing at System institutions during volatile times. To align
strategic priorities with economic conditions, FCA identified intensifying credit risk as a risk topic in
its national oversight plan for FY 2016. The objective of this audit is to determine whether FCA has
implemented stress testing requirements and best practices effectively.

Examination Oversight of Governance and Internal Controls
One of FCA’s strategic goals is to evaluate risk and provide timely and proactive oversight to
ensure the safety and soundness of the System. FCA uses a risk-based approach to examine
System institutions. The objective of this audit is to evaluate the Agency’s examination process as it
relates to the oversight of governance and internal controls at System institutions.

Separating Employee Process
When FCA employees and contractors separate from the Agency (resignation, retirement, etc.), the
Agency uses an Employee Checkout Record to process the employee’s separation. The separating
employee must return Agency equipment, keys, ID card, etc. and obtain signatures from various
personnel and offices prior to separation, certifying the employee has received any mandatory
notices and signed all required forms. The objective of the inspection is to determine whether FCA
is effectively following separation procedures.

Regulation Development Process
FCA has adopted strategies and operating procedures for developing regulations. These standards
are designed to ensure rules and policies achieve necessary objectives while aligning with FCA’s
overarching mission and direction. The objective of this audit is to determine whether FCA’s
regulatory development process is efficient and effective.
_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         23
                         Farm Credit Administration
                         Office of Inspector General
                           Fiscal Years 2017-2018

                                             AUDIT PLAN
Ethics Program and Process
Executive Order 12674 established the Office of Government Ethics and created a framework to
establish uniform ethics programs throughout the Executive branch. FCA established its ethics
program in 1992, which is overseen by the Board Chairman and administered by the Designated
Agency Ethics Official (DAEO), Alternate DAEO and Deputy Ethics Official. The objective of this
audit/inspection is to determine whether FCA is fulfilling the requirements of its program, complying
with applicable ethics laws and regulations, and is taking appropriate corrective action for ethics
violations.

Audits and Evaluations Beyond FY 2018
    •   Delegations
    •   Overlap in Functions
    •   Conflicts of Interest
    •   Settlement Process
    •   Approval Process of FCS Bond Issuance
    •   Examination Quality Assurance Process
    •   Records Management
    •   Analysis of Changes in FCS Loan Underwriting Standards
    •   Office of General Counsel Legal Opinion Process
    •   FCA Strategic Plan
    •   FCS Loans Data System
    •   General Control Reviews: Access Controls
    •   General Control Reviews: Segregation of Duties
    •   General Control Reviews: Software Development and Change Control
    •   General Control Reviews: System Software
    •   Information Technology Investments Performance Measures
    •   Consolidated Reporting System
    •   Office of Information Technology Project Board
    •   UNINUM Project
    •   Discrimination Complaint Process
    •   FOIA Process




_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         24
                                                                                                     APPENDIX A
                            Farm Credit Administration
                            Office of Inspector General
                              Fiscal Years 2017-2018
             FY 2017 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 Evaluations                 $1,063,060                68%               4.1            68%

  Investigations                                         $187,599                12%               0.7            12%

  Legislation and Regulations Review                       $78,166                5%               0.3              5%

  Outreach                                               $234,499                15%                .9            15%

                                            Total      $1,563,324              100%                  6           100%

 Audits, Inspections, and Evaluations—The OIG issues approximately 5-10 reports per year
 (including the annual FCA financial audit and FISMA review). These reports include
 recommendations to Agency officials to assist the Agency in fulfilling its oversight mission more
 effectively and efficiently.
 Budget for FY 2017—$1,063,060 .................................................................................4.1 FTE
 Investigative Function—Allegations received by the OIG are reviewed by evaluating
 information provided and additional information as required 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 function.
 Budget for FY 2017—$187,599 ....................................................................................0.7 FTE
 Review and Make Recommendations on Existing and Proposed Legislation and
 Regulations and Provide Other Outreach—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 2017—$78,166 ......................................................................................0.3 FTE
 Outreach—The OIG educates FCA employees about OIG’s role within the Agency. The OIG
 participates by providing leadership and other assistance 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, reporting through various mechanisms, including the Semiannual Report to the Congress,
 and also participation in external activities such as membership on the Federal Audit Executive
 Committee, Institute of Internal Auditors, CIGIE and the CCIG, and other public and government
 forums and organizations. OIG also conducts outreach through four survey reports regarding
 System institutions’ ratings and evaluation of the Agency’s examination function.
 Budget for FY 2017—$234,499 ....................................................................................0.9 FTE

_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018                                         25
                                                                                                     APPENDIX A
                            Farm Credit Administration
                            Office of Inspector General
                              Fiscal Years 2017-2018
           FY 2018 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             $1,079,795               68%                4.1            68%
  Investigations                                          $190,552              12%                0.7            12%
  Legislation and Regulations Review                       $79,397                5%               0.3             5%
  Outreach                                                $238,190              15%                0.9            15%
                                              Total    $1,587,934              100%                  6          100%

 Audits, Inspections, and Evaluations—The OIG issues approximately 5-10 reports per year
 (including the annual FCA financial audit and FISMA review). These reports include
 recommendations to Agency officials to assist the Agency in fulfilling its oversight mission more
 effectively and efficiently.
 Budget for FY 2017—$1,079,795 .................................................................................4.1 FTE
 Investigative Function—Allegations received by the OIG are reviewed by evaluating
 information provided and additional information as required 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 function.
 Budget for FY 2017—$190,552 ....................................................................................0.7 FTE
 Review and Make Recommendations on Existing and Proposed Legislation and
 Regulations and Provide Other Outreach—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 2017—$79,397 ......................................................................................0.3 FTE
 Outreach—The OIG educates FCA employees about OIG’s role within the Agency. The OIG
 participates by providing leadership and other assistance 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 reporting through various mechanisms, including the Semiannual Report to the Congress, and
 also participation in external activities such as membership on the Federal Audit Executive
 Committee, Institute of Internal Auditors, CIGIE and the CCIG, and other public and government
 forums and organizations. OIG also conducts outreach through four survey reports regarding
 System institutions’ ratings and evaluation of the Agency’s examination function.
 Budget for FY 2017—$238,190 ....................................................................................0.9 FTE


_________________________________________________________________________________________________________
FCA OIG Strategic and Operating Performance Plan FY 2017-2018
                                                                                                      26