**UNITED STATES DEPARTMENT OF AGRICULTURE**

**RURAL DEVELOPMENT**

Rural Business Cooperative Service 601 Business Loop 70 West (573)
876-0976

Rural Housing Service Parkade Center, Suite 235 FAX (573) 876-0970

Rural Utilities Service Columbia, MO 65203 TDD (573) 876-9480

For Administrative Use Only Missouri AN NO. 1378 (2006-M)

September 6, 2001

TO: State Office Directors

Rural Development Managers

Community Development Managers

FROM: Gregory C. Branum

State Director, Rural Development

SUBJECT: FY 2002 Management Control Process

[PURPOSE/INTENDED OUTCOME:]{.underline}

This Administrative Notice is to establish the FY 2002 Management
Control Process, Teams and Schedule.

[COMPARISON WITH PREVIOUS AN:]{.underline}

REPLACES Missouri AN NO. 1361 (2006-M) dated September 8, 2000, which
expires October 1, 2000.

[IMPLEMENTATION RESPONSIBILITIES:]{.underline}

***REVIEW SCHEDULE:***

The management control regulations of 1996 established the State
Internal Review (SIR) process. It requires a review to be completed in
every office at least every five years or sooner if determined necessary
by the State Director or State Senior Management Team. Attachment A is
Missouri\'s 5-Year Management Control Schedule. An effort was made to
spread out the reviews by having at least one office within an area to
be reviewed during each year.

With the above parameters, we ended up with 6 reviews during FY 2002.
This plan is subject to revision based on personnel changes and other
factors.

EXPIRATION DATE: October 1, 2002 FILING INSTRUCTIONS: Preceding

Rural Development Inst. 2006-M

***PROPOSED OFFICES AND DATES FOR FY 2001 REVIEWS:***

Union November 13-15, 2001

Kirksville L/O & A/O January 22-24, 2002

Ozark March 20-22, 2002

Rolla April 24-26, 2002

> Kennett May 21-23, 2002
>
> Richmond July 23-25, 2002

***STATE SENIOR MANAGEMENT TEAM:***

There will be a State Senior Management (SSM) team reporting to the
State Director to be responsible to: (a) help determine the major areas
to be reviewed; (b) review the report and recommendations and determine
the corrective actions to be taken for the weaknesses identified; and
(c) review the responses for the report and make recommendations to the
State Director for closure of the report. The SSM team for FY 2002 will
be:

1.  Management Control Officer (Team Leader) & Director, Program Support
    Staff

2.  Director, Community Development

3\. Director, Community and Business Programs

4\. Director, Rural Housing

5\. Assistant to the State Director

***STATE INTERNAL REVIEW TEAM:***

The SIR team is responsible for the following: (a) conduct the on-site
portion of the review and complete the appropriate section in the SIR
handbook; (b) participate in an entrance and exit conferences with each
office reviewed; (c) review the loan dockets and information necessary
to complete the review; and (d) identify the weaknesses and strengths
(e) identify the appropriate finding codes to input into the Automated
Review Tracking System (ARTS) and (f) complete the computer generated
reports as part of the review and submit a report to the Management
Control Officer within 10 working days of the exit conference .

***PROCESS:***

The Team Leader (Management Control Officer) will coordinate the review
with the following responsibilities:

1\. Coordinate the lodging accommodations.

2\. Notify the office being reviewed of the dates of the on-site visit.

> 3\. Determine the review modules (area of reviews) that each team
> member will be responsible for.

4\. Coordinate the file review. It is still thought that these files can
be reviewed at the reviewer\'s office rather than on-site to reduce the
interruption to the office reviewed, reduce the travel costs associated
with the review, etc. It is believed that three days on-site may be
adequate to conduct the interviews, complete the review, and hold the
exit conference.

5\. Coordinate the final review to the State Director.

State Office Specialists and Program Directors will be available to
assist the team with questions concerning the programs or administrative
requirements. Questions concerning the process, management control
requirements, and etc., should be directed to George Thomas, Management
Control Officer.

All team members should review the 2006-M regulations. The State
Internal Review Handbook, contains the review guides. The Rural
Development Managers have been furnished a copy of SIR Handbook. The SIR
Review Guides are also on the RD SNAP1 Server under the miscellaneous
folder. The Management Control Officer will coordinate with each team
prior to the scheduled review to cover the basic requirements.

Team members are required to comply with RD Instructions 2006-M. Review
Guides, compliance reports (on the excel spreadsheets) and Automated
Review Tracking System (ARTS) finding codes. Codes will be identified
for each weakness found and for the approved corrective actions. The
completed guides, compliance reports, and finding codes will be due 10
working days after the date of the exit conference. Corrective actions
codes will be identified on the approved corrective action for each
weakness.

If you have any questions, please contact George Thomas, Management
Control Officer.

**ATTACHMENT A**

**FIVE YEAR MANAGEMENT CONTROL SCHEDULE**