2011

Summary of

Performance and 

Financial Information
FY 2011 Summary of Performance and Financial Information

2

This Fiscal Year 2011 Summary of Performance and Financial Information, and the Fiscal 

Year 2011 Performance and Accountability Report from which it is derived, can be 

downloaded at www.usda.gov. From there, click on “About USDA.” The U.S. 

Department of Agriculture (USDA) can be contacted through the same Web site by 

clicking “Contact Us.”

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and expression), marital status, familial status, parental status, religion, sexual orientation, 

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of program information (Braille, large print, audiotape, etc.) should contact USDA's 

TARGET Center at (202) 720-2600 (voice and TDD).

USDA is an equal opportunity provider and employer.

Only Federal employees participated in the preparation of the performance and financial 

information contained in this report.
FY 2011 Summary of Performance and Financ ial Information

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Table of Contents

Table of Contents .......................................................................................................................... 1

Message from the Secretary............................................................................................................. 2

About this Report .......................................................................................................................... 6

1. Summary of Performance and Financial Information.................................................................... 7

Resources ...............................................................................................................................................................10

Performance Goals, Objectives, and Results .........................................................................................................11

Future Demands, Risks, Uncertainties, Events, Conditions, and Trends.............................................................13

Financial Statement Highlights.............................................................................................................................16

Systems, Controls, and Legal Compliance (Statement of Assurance)...................................................................21

Federal Managers’ Financial Integrity Act Report on Management Control .......................................................22

Federal Financial Management Improvement Act Report on Financial Management Systems...........................25

Federal Financial Management System Requirements..........................................................................................26

Eliminating Improper Payments ...........................................................................................................................28
Message from the Secretary 

In fulfillment of its duty to the people, the President, and Congress, the U.S. 

Department of Agriculture (USDA) respectfully submits this Fiscal Year 

(FY) 2011 Performance and Accountability Report. 

Recent budget challenges and efforts to stabilize the long-term financial 

health of the Nation have caused uncertainty and concern. As a country, we 

face important choices regarding the funding and operation of our 

Government. 

As we approach USDA’s 150th anniversary, the opportunity to build a better and stronger 

Department is before us. In that spirit, I have asked my fellow leaders at USDA to undertake a 

review of our operations to identify ideas, improvements, and innovation to manage this coming 

change. As part of this review, USDA leaders will be engaging employees and unions to help 

shape an outcome for the betterment of the entire Department. We can manage these 

challenges and strengthen our service. When we do, we will complete USDA’s Cultural 

Transformation into a modern and trusted partner in the lives and well-being of the American 

people. 

USDA continues to empower and revitalize farms, ranches, and U.S. rural communities. One of 

the primary ways that the Department supports rural communities is through increased exports 

and market access. Agriculture is one of the few sectors in the U.S. economy in which exports 

are creating a positive trade balance. Moreover, agricultural exports continue to grow, 

increasing by an average of 14 percent per year over the last 5 fiscal years (FY 2007–FY 2011). 

However, U.S. agricultural producers and small and medium enterprises face an increasingly 

challenging, technologically advanced, and competitive business environment. USDA works to 

ensure that they are prosperous and competitive by supporting innovative research and their 

access to international markets through market development programs, trade shows, prevention 

and resolution of unjustified Technical Barriers to Trade (TBT) and market-expanding trade 

agreements for U.S. agricultural products. The Department is participating in World Trade 

Organization multilateral committee meetings as well as negotiating new trade agreements to 

increase U.S. agricultural trade. 

This year has been very beneficial to agricultural exports. USDA worked closely with the United 

States Trade Representative to gain approval for three free trade agreements. Once 

implemented, these agreements are expected to expand exports. The Department resolved 

numerous unjustified trade barriers and expanded U.S. opportunities in markets associated with 

Indonesian grain; Chilean and Egyptian meat; Algerian dairy products; Vietnamese horticulture. 

The Department also helped bring about Saudi Arabia’s removal of a ban on food coloring and 

the opening of the western Australian market to U.S. cherries. 

U.S. agricultural exports reached an all-time high of $137.4 billion in FY 2011, which is a 27 

percent increase over 2010. USDA will continue to facilitate trade for U.S. food and agricultural 

products with the ultimate goal of creating jobs and facilitating additional economic activity. 

USDA also looked at new efforts—and at streamlining and targeting work—to conserve the 

Nation’s forests, farmlands, and watersheds. USDA also worked closely with other agencies in 

launching the President’s America’s Great Outdoors initiative designed to reconnect Americans 

to the outdoors and establish a 21st century conservation agenda. 
Examples of USDA’s conservation work in this regard include the following: 

Committed more than $100 million to restoring the Everglades by developing conservation 

contracts on 44,000 acres and enrolling more than 23,000 acres of private lands in 

conservation easements through targeted use of the Wetlands Reserve Program; 

Released the first-ever National Watershed Condition Framework for the National Forest 

System and completed an assessment of condition class for 15,000 sub-watersheds; 

identified priority watersheds on all National Forests and initiated Watershed Action Plans 

for priority watersheds; 

Worked across 11 western states to restore habitat for the sage grouse, a bird proposed for 

the federal endangered species list, by providing $94 million to help landowners restore 

habitat and to purchase easements; participating landowners are assured that, if the sage 

grouse is added to the list, they won’t be subject to additional regulation. 

Protected 149,000 acres in 14 States through the Forest Legacy Program, leveraging 

$31 million of Federal, State, and private resources to support land conservation 

activities through easements and fee acquisition; and 

Provided opportunities for thousands of young people to engage in work and service 

learning opportunities on our public lands through Forest Service Job Corps Centers and 

opportunities provided with Corps organizations and other partners around the country; 

also connected more than 25 million young Americans with the great outdoors through 

Forest Service-sponsored recreational, educational, and other programs and events. 

USDA-led research, education, and extension efforts support and integrate all USDA programs 

and help producers and rural communities prosper. The Department’s work on some of the 

world’s most pressing problems, including food security, nutrition, food safety, climate change, 

and sustainable bioenergy, encourages innovation and the creation of new industries, 

businesses, products, and services. One major driver of successful innovation is technology 

transfer—the private sector adoption of research outcomes—of federally funded research from 

universities and Federal laboratories to the marketplace. Often, research performed by Federal 

scientists or supported by the Federal Government is leveraged by the private sector to serve the 

broader public—creating jobs, spurring economic growth, and enhancing global competitiveness 

in the U.S. agriculture sector. 

No one should go hungry in America, and USDA helps nearly one person in four through a 

number of nutrition assistance programs, including the Supplemental Nutrition Assistance 

Program (SNAP), the Special Supplemental Nutrition Program for Women, Infants, and 

Children (WIC), and our School Breakfast, Special Milk, National School Lunch, and Fresh Fruit 

and Vegetable Programs. The Department’s commitment to improving the quality and 

standards of food in our schools, coupled with efforts to increase physical activity, is enabling 

more children to lead healthier lifestyles. 

I recently joined First Lady Michelle Obama at a reception to honor schools taking part in 

USDA’s HealthierUS School Challenge as part of the Administration’s Let’s Move! campaign. 

The Challenge recognizes schools that create healthier school environments by providing 

students with exceptional nutrition education, nutritious food and beverage choices, physical 

education, and opportunities for physical activity. In January of this year, the Department also 

issued new Dietary Guidelines for Americans (DGA) in collaboration with the Department of 

Health and Human Services. The DGAs are the Federal Government’s blueprint for healthy 

eating and nutrition. In June, I joined the First Lady and Surgeon General Regina Benjamin to 

unveil the Federal Government’s new food icon, MyPlate, to remind consumers to make 
healthier food choices. MyPlate encourages consumers to build a healthy plate with emphasis 

on the fruit, vegetable, grains, protein, and dairy food groups. 

With regard to food safety, USDA has announced several new measures to safeguard our 

Nation’s food supply, prevent foodborne illness, and improve consumers’ knowledge of the food 

they and their families eat. Some of these actions include new steps to fight the pathogen E. 

coli; improved performance standards for poultry establishments; ―test and hold‖ policies that 

reduce consumer exposure to unsafe meat products; and proposed improvements to consumer 

product labeling. 

I am also pleased to report that USDA is leading the charge to help revitalize rural America. As a 

result of the President’s Executive Order in June, I am proud to chair the first White House 

Rural Council. The Council is responsible for coordinating the Administration’s efforts in rural 

America by streamlining and improving the effectiveness of Federal programs serving rural 

communities in an effort to promote job creation and economic development. In just a few 

months, the Council has already identified and announced several areas of improved 

collaboration, including doubling the SBA investment for small rural businesses over the next 

five years, expanding DOL job search and training services to the USDA sites nationwide, and 

increasing physician recruitment at critical access hospitals through expansion of the National 

Health Service Corps. The Council has created a mechanism for agencies to improve 

coordination and better leverage federal investment in rural communities. 

Through its Departmental Management office, USDA has provided leadership in Cultural 

Transformation to increase the diversity, inclusion, and accessibility of the Department. 

Departmental Management has led the effort to improve outreach to socially disadvantaged 

farmers and ranchers, led innovations in procurement and property management services, 

achieved USDA’s highest level of workforce diversification through its Office of Human 

Resources Management, and brought in a record number of scholars and fellows through its 

Higher Education Programs who are collectively leading the way for USDA to be the most 

efficient and productive it has ever been. 

In FY 2011, USDA’s Office of the Chief Financial Officer (OCFO) worked with USDA agencies to 

reduce the inventory of open audits by 20 percent. Additionally, the number of audits that have 

been open a year or more without final action was reduced by 34 percent. OCFO continued 

implementation of the Financial Management Modernization Initiative (FMMI), a core financial 

system to replace USDA’s nine general ledger systems. Of the 29 agencies that form the 

Department, 25 have implemented FMMI. 

The Department’s management team continues to oversee USDA’s assessment of internal 

control over its programs, operations, financial systems, and financial reporting. The 

Department’s work is consistent with the provisions of the Federal Managers’ Financial Integrity 

Act (FMFIA) and the Federal Financial Management Improvement Act (FFMIA). USDA’s 

continuous monitoring and remediation efforts allow us to provide taxpayers with reasonable 

assurance that this report is based on sound, accurate data. 

Nevertheless, continued improvement is needed to remediate existing material weaknesses and 

financial system noncompliance. To accomplish this goal, management continues to implement 

corrective action-plan activities. Therefore, I provide qualified assurance that, except for the 

areas in need of improvement as described in the Management Assurances section of this report, 

USDA’s internal control over operations, financial systems, and financial reporting meets the 

objectives of FMFIA and FFMIA. The financial and performance information presented herein 

is complete and accurate and is in accordance with law and Office of Management and Budget 

guidance. 
Thank you for your interest in the Department. I salute USDA employees for their outstanding 

work and am proud to share this information with our stakeholders. We will continue to serve 

the needs of the people every day and in every way. 

Thomas J. Vilsack 

Secretary of Agriculture 

November 15, 2011 
FY 2011 Summary of Performance and Financ ial Information

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About this Report

This Fiscal Year 2011 Summary of Performance and Financial Information was originally published as the 

Management’s Discussion and Analysis section of the Fiscal Year 2011 Performance and Accountability Report

(PAR), the year-end progress report of the United States Department of Agriculture (USDA). The 

Department reviews its strategic goals, objectives, and performance measures it set for itself at the beginning 

of the fiscal year. USDA then compares these targets to the year’s performance. The data used by the 

Department to measure performance are collected using a standardized methodology. This methodology has 

been vetted by federally employed scientists and policymakers, and, ultimately, the Under Secretaries of the 

respective mission areas. All attest to the completeness, reliability, and quality of the data.

The Government Performance and Results Act of 1993 (GPRA), and the GPRA Modernization Act of 

2010 are the Federal statutes that form the basis of Federal agency planning and reporting. GPRA, later 

laws, and executive branch guidance drive the planning and reporting process in this fashion: the 5-year 

Strategic Plan is used to craft the Annual Performance Plan, and progress on the Annual Performance Plan 

is reported in the PAR. All plans and reports are available at usda.gov. 

The programs once rated by the Performance Assessment Rating Tool (PART) are represented by 

performance measures or program discussion presented in the Annual Performance Plan and subsequently 

reported in the PAR.
FY 2011 Summary of Performance and Financ ial Information

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1. Management’s Discussion and Analysis

he Department was founded by President Abraham Lincoln in 1862, when more than half of the 

Nation’s population lived and worked on farms. The population has increased approximately tenfold, 

and is estimated at 307 million people, the vast majority of whom do not live on farms or in rural 

areas. The magnitude of America’s evolved needs for food, fiber, forest products, and public services has 

required USDA to grow and deliver expanded public services.

Today, USDA improves the Nation’s economy and quality of life by touching the lives of almost every 

American every day. More than 100,000 employees deliver more than $188.7 billion to provide public 

services through USDA’s more than 300 programs worldwide.

Because America’s food and fiber producers operate in a global, technologically advanced, rapidly 

diversifying, and highly competitive business environment, USDA is constantly helping producers meet 

the needs of the Nation.

USDA’s strategic goals, as outlined in the Strategic Plan for FY 2010-2015 (usda.gov), are:

Strategic Goal 1: Assist Rural Communities to Create Prosperity So They are Self-Sustaining, Repopulating, and 

Economically Thriving

Strategic Goal 2: Ensure Our National Forests and Private Working Lands are Conserved, Restored, and 

Made More Resilient to Climate Change, While Enhancing Our Water Resources

Strategic Goal 3: Help America Promote Agricultural Production and Biotechnology Exports as America 

Works to Increase Food Security

Strategic Goal 4: Ensure That All of America’s Children Have Access to Safe, Nutritious, and Balanced 

Meals

These goals reflect USDA’s commitment to provide first-class service, state-of-the-art science, and 

consistent management excellence across the Department. USDA assesses and seeks to improve program 

performance so that the Department can maximize its impact. Program assessments identify how well 

and efficiently a program is working and what specific actions can be taken to improve its performance. 

Summary program evaluations conducted during fiscal year (FY) 2011 are included in this document at 

the end of Section 2, “Annual Performance Report.”

USDA’s management structure can be found in Exhibit 1, “Headquarters Organization.”

T
FY 2011 Summary of Performance and Financ ial Information

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Exhibit 1: Headquarters Organization (FY 2011)

MISSION AREAS

The Department’s work is organized by mission 

areas, which are collections of agencies that work 

together to achieve USDA’s strategic goals. 

Descriptions of USDA’s seven mission areas follow.

Natural Resources and Environment

The Natural Resources and Environment (NRE)

mission area ensures the health of the land through 

sustainable management. Its agencies work to 

prevent damage to natural resources and the environment, restore the resource base, and promote good 

land management. NRE consists of the Forest Service and the Natural Resources Conservation Service 

(NRCS). Forest Service manages public lands in national forests and grasslands, which encompass 193 

million acres. NRCS provides leadership in a partnership effort to help America's private land owners and 

managers conserve their soil, water, and other natural resources. Both agencies work in partnership with 

Tribal, Federal, State, and local Governments, and community-related groups to protect soils, 

watersheds, and ecosystems.

Farm and Foreign Agricultural Services 

The Farm and Foreign Agricultural Services (FFAS) mission area helps keep America's farmers and 

ranchers in business as they face the uncertainties of weather and markets. FFAS delivers programs that 

support a sustainable and competitive US agricultural system. This mission area is comprised of the Farm 

Service Agency (FSA), the Foreign Agricultural Service (FAS), and the Risk Management Agency 

(RMA). FSA administers and manages commodity, farm credit, conservation, and disaster programs 

through a network of Federal, State, and county offices. FSA provides administrative support for the 

Commodity Credit Corporation (CCC). The CCC is a Government-owned entity which funds most of 

Agricultural Research 

Service

National Institute of 

Food and Agriculture

National Agricultural 

Library 

National Agricultural 

Statistics Service

Economic Research 

Service

Agricultural Marketing 

Service

Animal and Plant 

Health Inspection 

Service

Grain Inspection, 

Packers and 

Stockyards 

Administration

Food Safety and 

Inspection 

Service

Forest Service

Natural Resources 

Conservation 

Service

Food and Nutrition 

Service

Center for Nutrition 

Policy and Promotion

Farm Service 

Agency

Foreign Agricultural 

Service

Risk Management 

Agency

Rural Utilities 

Service

Rural Housing 

Service

Rural BusinessCooperative Service

Deputy Secretary

Director of

Communications

SECRETARY

Assistant Secretary for 

Congressional Relations

Assistant Secretary for 

Administration

Assistant Secretary for 

Civil Rights

Inspector

General

General

Counsel

Chief Information

Officer

Chief Financial

Officer

Executive 

Operations 

Under Secretary for 

Marketing and 

Regulatory Programs

Under Secretary for 

Food Safety

Under Secretary for 

Natural Resources

and Environment

Under Secretary for 

Food, Nutrition and 

Consumer Services

Under Secretary for 

Farm and Foreign 

Agricultural Services

Under Secretary

for Rural

Development

Under Secretary for 

Research, Education 

and Economics

Agricultural Research 

Service

National Institute of 

Food and Agriculture

National Agricultural 

Library 

National Agricultural 

Statistics Service

Economic Research 

Service

Agricultural Marketing 

Service

Animal and Plant 

Health Inspection 

Service

Grain Inspection, 

Packers and 

Stockyards 

Administration

Food Safety and 

Inspection 

Service

Forest Service

Natural Resources 

Conservation 

Service

Food and Nutrition 

Service

Center for Nutrition 

Policy and Promotion

Farm Service 

Agency

Foreign Agricultural 

Service

Risk Management 

Agency

Rural Utilities 

Service

Rural Housing 

Service

Rural BusinessCooperative Service

Deputy Secretary

Director of

Communications

SECRETARY

Assistant Secretary for 

Congressional Relations

Assistant Secretary for 

Administration

Assistant Secretary for 

Civil Rights

Inspector

General

General

Counsel

Chief Information

Officer

Chief Financial

Officer

Executive 

Operations 

Under Secretary for 

Marketing and 

Regulatory Programs

Under Secretary for 

Food Safety

Under Secretary for 

Natural Resources

and Environment

Under Secretary for 

Food, Nutrition and 

Consumer Services

Under Secretary for 

Farm and Foreign 

Agricultural Services

Under Secretary

for Rural

Development

Under Secretary for 

Research, Education 

and Economics

Mission Statement

USDA provides leadership on food, agriculture, 

natural resources, and related issues based on 

sound public policy, the best available science, and 

efficient management.
FY 2011 Summary of Performance and Financ ial Information

9

the commodity, export, and some conservation programs of USDA. FAS works to improve international 

market access for U.S. products, build new markets, improve the competitive position of domestic 

agriculture in the global marketplace, and provide food aid and technical assistance to other countries. 

RMA helps producers manage their business risks through effective, market-based risk management 

solutions. In addition, RMA manages the Federal Crop Insurance Corporation (FCIC) to improve the 

economic stability of agriculture through a sound system of crop insurance.

Rural Development

The Rural Development (RD) mission area focuses on helping improve the economy and quality of life in 

all of rural America. RD provides financial support for the development of essential public facilities and 

services as water and sewer systems, housing, health clinics, emergency service facilities, and electric and 

telephone services. RD promotes economic development by providing direct loans and loan guarantees to 

businesses through private sector financial institutions. In addition, RD provides grants, loan guarantees

and payments to farmers, ranchers, and rural small businesses to develop renewable energy systems and 

make energy efficiency improvements.

Food, Nutrition, and Consumer Services

The Food, Nutrition, and Consumer Services (FNCS) mission area works to harness the Nation's 

agricultural abundance to reduce hunger and improve health in the United States. FNCS’ agencies 

administer Federal domestic nutrition assistance programs. FNCS is comprised of the Food and 

Nutrition Service (FNS) and the Center for Nutrition Policy and Promotion (CNPP). FNS administers 

USDA’s 15 Federal nutrition assistance programs. CNPP works to improve the health and well-being of 

Americans by developing and promoting dietary guidance that links scientific research to the nutrition 

needs of consumers.

Food Safety

Food Safety ensures that the Nation's commercial supply of meat, poultry, and egg products is safe, 

wholesome, and properly labeled and packaged. This mission area also plays a key role in the Food Safety 

Working Group, a coordinated government-wide initiative to ensure a safe food supply for the American 

people for the 21st century. USDA's partners in the Working Group include the U.S. Department of 

Health and Human Services, the U.S. Environmental Protection Agency, and a number of other 

Government agencies. Food Safety is made up of the Office of the Administrator, the Office of Catfish 

Inspection Programs, the Office of the Chief Information Officer, the Office of Data Integration and 

Food Protection, the Office of Field Operations, the Office of International Affairs, the Office of 

Management, the Office of Outreach, Employee Training and Education, the Office of Public Affairs 

and Consumer Education, The Office of Program Evaluation, Enforcement, & Review, the Office of 

Policy and Program Development, and the Office of Public Health Science. 

Research, Education, and Economics

The Research, Education, and Economics (REE) mission area is dedicated to the creation of a safe, 

sustainable, competitive U.S. food and fiber system, as well as the development of strong communities, 

families, and youth through integrated research, analysis, and education. REE is comprised of the 

Agricultural Research Service (ARS), the National Institute of Food and Agriculture (NIFA), the 

Economic Research Service (ERS), the National Agricultural Statistics Service (NASS), and the National 

Agricultural Library (NAL).

Marketing and Regulatory Programs

The Marketing and Regulatory Programs (MRP) mission area facilitates the domestic and international 

marketing of U.S. agricultural products and ensures the health and care of animals and plants. MRP is 
FY 2011 Summary of Performance and Financ ial Information

10

made up of the Agricultural Marketing Service (AMS), the Animal and Plant Health Inspection Service 

(APHIS), and the Grain Inspection, Packers, and Stockyards Administration (GIPSA). AMS 

administers programs that facilitate the efficient, fair marketing of U.S. agricultural products, including 

food, fiber, and specialty crops. APHIS provides leadership in ensuring the health and care of animals and 

plants. GIPSA facilitates the marketing of livestock, poultry, meat, cereals, oilseeds, and related 

agricultural products.

DEPARTMENTAL MANAGEMENT

Department-level offices provide centralized leadership, coordination, and support for USDA’s policy and 

administrative functions. Their efforts maximize the energy and resources agencies devote to the delivery 

of services to USDA customers and stakeholders.

Resources

Congressional appropriations are the primary funding source for USDA operations. FY 2011 program 

obligations totaled $183.6 billion, a decrease of $5 billion compared to FY 2010. These are current year 

obligations from unexpired funds.

Exhibit 2 shows USDA’s net cost of program operations for FY 2011, organized by strategic goal and 

compared to FY 2010. Total net costs for FY 2011 were $149 billion compared to $132.4 billion for 

FY 2010. 

Exhibit 2: FY 2011 USDA Net Cost of Program Operations by Strategic Goals (in millions)

Goal 1: Assist Rural Communities to Create Prosperity So They are Self-Sustaining, Repopulating, and 

Economically Thriving

Goal 2: Ensure Our National Forests and Private Working Lands are Conserved, Restored, and Made More 

Resilient to Climate Change, While Enhancing Our Water Resources

0

20,000

40,000

60,000

80,000

100,000

120,000

Goal 1

Goal 2

Goal 3

Goal 4

FY2011

FY2010
FY 2011 Summary of Performance and Financ ial Information

11

Goal 3: Help America Promote Agricultural Production and Biotechnology Exports as America Works to 

Increase Food Security

Goal 4: Ensure That All of America’s Children Have Access to Safe, Nutritious, and Balanced Meals

Performance Goals, Objectives, and Results

Of the 43 performance measures contained in USDA’s FY 2011 Annual Performance Plan, 33 were met or 

exceeded, 9 were unmet, and 1 was deferred. The following Performance Scorecard table, organized by 

USDA’s strategic goals and objectives, provides a summary of the Department’s performance results. 

Additional analysis of these results can be found in the Annual Performance Report section of this report.

PERFORMANCE SCORECARD FOR FY 2011

Objectives Annual Performance Goals Result

Strategic Goal 1: Assist Rural Communities to Create Prosperity So they are self sustaining, repopulating and Economically Thriving

1.1 Enhance Rural Prosperity 1.1.1 Number of jobs created or saved through USDA financing of 

businesses

1.1.2 Number of borrowers/subscribers receiving new or improved 

telecommunication services 

Unmet

Unmet 

1.2 Create Thriving Communities 1.2.1 Number of borrowers/subscribers receiving new or improved service 

from agency funded water facility 

Exceeded

1.2.2 Homeownership Opportunities Provided

1.2.3 Percentage of customers who are provided access to new and/or 

improved essential community facilities

• Health Facilities

• Safety Facilities

• Educational Facilities

1.2.4 Number of borrowers/subscribers receiving new and/or improved 

electric facilities 

Unmet

Exceeded

Exceeded

Exceeded

Exceeded

1.3 Support a Sustainable and 

Competitive Agricultural System

1.3.1 Percentage of beginning farmers, racial and ethnic minority farmers, 

and women farmers financed by USDA

Exceeded

1.3.2 Maintain or increase percentage of FSA program delivery applications 

at USDA Service Centers that are Web-enabled

Met

1.3.3 Dollar value of agriculture trade preserved through trade agreement 

negotiation, monitoring, and enforcement non-SPS activities

Met

1.3.4 Value of trade preserved annually through USDA staff interventions 

leading to resolution of barriers created by Sanitary/Phytosanitary 

(SPS) or TBT measures.

Exceeded

1.3.5 Value of FCIC risk protection coverage provided through FCIC 

sponsored insurance 

Exceeded

1.3.6 Normalized value of FCIC risk protection coverage provided through 

FCIC sponsored insurance 

Met

1.3.7 Percent of industry compliance with the Packers Stockyards Act Unmet

Strategic Goal 2: Ensure Our National Forests and Private Working Lands are Conserved, Restored, and Made More Resilient to 

Climate Change, While Enhancing Our Water Resources

2.1 Restore and Conserve the Nation’s 

Forests, Farms, Ranches, and 

Grasslands

2.1.1 CRP restored wetland acreage Exceeded

2.1.2 CTA: Cropland with conservation applied to improve soil quality Met

2.1.3 EQIP: Cropland with conservation plans applied to improve soil quality Met

2.1.4 CTA: Grazing land and forest land with conservation applied to protect 

and improve the resource base

Met

2.1.5 EQIP: Grazing land and forest land with conservation plans applied to 

protect and improve the resource base

Met
FY 2011 Summary of Performance and Financ ial Information

12

PERFORMANCE SCORECARD FOR FY 2011

Objectives Annual Performance Goals Result

2.1.6 FRPP: Prime, unique, or important farmland protected from conversion 

to nonagricultural uses by conservation easements 

Exceeded

2.1.7 WHIP: Non-Federal land with conservation applied to improve fish and 

wildlife habitat quality 

2.1.8 Acres protected from conversion through easements and fee-simple 

purchases

Exceeded

Unmet

2.2 Protect and Enhance America’s 

Water Resources

2.2.1 CTA: Comprehensive nutrient management plans applied Met

2.2.2 EQIP: Comprehensive nutrient management plans applied Met

2.2.3 CTA: Priority landscapes with high impact targeted conservation 

practices applied to improve water quality

2.2.4 WRP: Wetlands created, restored or enhanced

2.2.5 Acres of HIT practices implemented on NFS and private lands in priority 

landscapes to protect clean, abundant water

2.2.6 Annual economic contribution of recreation on NFS lands

Met

Met

Unmet

Met

2.3 Reduce Risk from Catastrophic 

Wildfire and Restore Fire to its 

Appropriate Place on the Landscape

2.3.1 Acres of WUI fuels treated to reduce the risk of catastrophic fire Met

2.3.2 Percentage of acres treated in the WUI that have been identified in 

Community Wildfire Protection Plans

Unmet

2.3.3 Cumulative Acres in NFS that are in a desired condition relative to fire 

regime 

Met

Strategic Goal 3: Help America promote Agricultural Production and Biotechnology Exports as America Works to Increase Food 

Security

3.1 Enhance America's Ability to Develop 

and Trade Agricultural Products 

Derived from New Technologies

3.1.1 Cumulative number of genetically engineered plant lines reviewed by 

USDA and found safe for use in the environment

Exceeded

Strategic Goal 4: Ensure that All of America’s Children Have Access to Safe, Nutritious, and Balanced Meals

4.1 Increase Access to Nutritious Foods 4.1.1 Participation levels for the major Federal nutrition assistance program: 

Supplemental Nutrition Assistance Program average (monthly) 

participation 

Met

4.1.2 Improve SNAP payment accuracy rate Deferred

4.1.3 Participation levels for the major Federal nutrition assistance programs 

• National School Lunch Program Met

• School Breakfast Program Met

4.1.4 Participation levels for the major Federal nutrition assistance programs: WIC Program

Met

4.2 Promote Healthy Diet and Physical 

Activity Behavior

4.2.1 Application and usage level of nutrition guidance tools(billions of pieces 

of nutrition guidance distributed) Baseline 2006 = 1.5

Unmet

4.3 Protect Public Health by Ensuring 

Food is Safe

4.3.1 Reduce overall public exposure to Salmonella from broiler carcasses Unmet

4.3.2 Reduce total illnesses from all regulated products Met

4.3.3 Percent of establishments with a functional food defense plan

• Large Establishment

• Small Establishment

• Very Small Establishment

Exceeded

4.4 Protect Agricultural Health by 

Minimizing Major Diseases and Pests 

Ensuring Access to Safe, Plentiful, 

and Nutritious Food

4.4.1 Value of damage prevented and mitigated annually as a result of 

selected plant and animal health monitoring and surveillance efforts 

Met
FY 2011 Summary of Performance and Financ ial Information

13

ACTIONS ON UNMET AND DEFERRED GOALS

USDA continuously works to improve its performance across all of its strategic goals and objectives. 

Sometimes circumstances arise that result in the Department falling short of its goals. At other times, the 

Department consciously alters its programmatic approach to enhance its service to the public. This may 

result in a specific performance goal becoming a less effective indicator of real progress.

The Annual Performance Report section of this report offers further discussion of the Department’s 

actions on its goals, objectives, and performance measures.

Future Demands, Risks, Uncertainties, Events, Conditions, and Trends

Farmers and food companies operate in highly competitive markets, both domestically and 

internationally. Rapid shifts in consumer demands associated with quality, convenience, taste, and 

nutrition dictate that farming and marketing infrastructures become more fluid and responsive.

National security is a significant, ongoing priority for the Department. USDA is working with the U.S. 

Department of Homeland Security to help protect agriculture from intentional and accidental acts that 

might impact America’s food supply or natural resources.

External factors that challenge USDA’s ability to achieve its goals include:

• Weather-related hardships and other uncontrollable events domestically and abroad;

• Domestic and foreign macroeconomic factors, including consumer purchasing power, the strength of 

the U.S. dollar, and political changes abroad that could impact domestic and global markets greatly at 

any time;

• Sharp fluctuations in farm prices, interest rates, and unemployment that could impact the ability of 

farmers, other rural residents, communities, and businesses to qualify for credit and manage their debts;

• The impact of future economic conditions and actions by a variety of Federal, State, and local 

Governments that could influence the sustainability of rural infrastructure;

• The increased movement of people and goods, which provides the opportunity for crop and animal 

pests and diseases, such as avian influenza and bovine spongiform encephalopathy, to move quickly 

across national and foreign boundaries;

• Potential exposure to hazardous substances, which may threaten human health and the environment, 

and the ability of the public and private sectors to collaborate effectively on food safety, security, and 

related emergency preparedness efforts;

• The risk of catastrophic fire, depending on weather, drought conditions, and the expanding number 

of communities in the wildland-urban interface; and

• Efforts to reduce hunger and improve dietary behaviors depend on strong coordination between 

USDA and a wide array of Federal, State, and local partners.

PRIORITY GOALS

As part of the FY 2011 budget process, leaders of the largest Federal agencies identified a small number 

of near-term, ambitious, outcome-focused priority goals. These are detailed in the President’s FY 2011 

budget. Each priority goal is important to the public and focuses on clear, measureable results.

Goal 1: By the end of 2011, reduce non-tariff trade barriers for 5 major markets and increase agriculture 

exports in those markets by $2 billion. USDA exceeded its priority goal for trade by working with the 

U.S. Trade Representative and other partners to reduce trade barriers in 9 major markets, facilitating 

$1.03 billion in additional trade for FY 2010. FY 2011 trade data, available in mid-November 2011, are 

expected to show that the Department significantly exceeded its $2 billion goal. Achievements included 
FY 2011 Summary of Performance and Financ ial Information

14

the lifting of import bans, favorable decisions from international bodies on pesticide residues and biotech 

products, and USDA continuing to support grant proposals for resolution of technical trade issues.

Goal 2: Increase the average number of provinces in Afghanistan that are deemed “Generally Food 

Secure” from an annual average of 11 in 2008 to an annual average of 14 in 2011, in support of the 

President’s Afghanistan and Pakistan Strategy. As a result, 41 percent of Afghanistan’s provinces will be 

food secure. With an average of 16 provinces considered food secure in 2011, USDA reached the target 

for this priority goal. USDA made a positive impact in Afghanistan by training and assisting 25,261 

Afghan farmers, exceeding the milestone of 20,000 farmers by June 2011. USDA built capacity within 

the Afghan Agriculture Ministry by working with Afghan officials responsible for 79 Districts, exceeding 

the milestone of 70 Districts.

Goal 3: By the end of 2011, accelerate the protection of clean, abundant water resources by implementing 

high impact targeted (HIT) practices on 6 million acres of national forest and private working lands in 

priority watersheds. USDA exceeded this priority goal by implementing HIT practices on 6.7 million 

acres by the end of FY 2011. 

Goal 4: Strengthen USDA’s biotechnology regulatory program by enhancing compliance and improving 

the petition process for non-regulated status, while working toward the prevention of unauthorized 

releases. The Department has met or exceeded five of six performance metric targets for this goal. 

Accomplishments included publishing (cumulatively) 15 determinations on biotechnology petitions in the 

Federal Register between FY 2007 and FY 2011, including 6 in FY 2011, and conducting 828 

biotechnology compliance inspections in FY 2011. USDA strengthened the biotechnology compliance 

program by enrolling a total of 18 companies in the Biotechnology Quality Management System 

(BQMS) program, falling slightly short of the goal of 20 companies after 2 companies withdrew. The 18 

enrolled entities account for more than 90 percent of all notifications and permits processed by the 

Department. In addition, USDA conducted a process improvement review for the petition review 

function, and anticipates implementing changes based on the findings from the review in FY 2012. Also 

in FY 2011, the Department initiated a National Environmental Protection Act pilot project to test new 

approaches to developing environmental documents and how these approaches improve the quality, 

timeliness, and cost of the process.

Goal 5: By 2011, partner with local schools, propose national standards and take other actions that will 

result in improved quality of food sold in schools throughout the school day. USDA exceeded its key 

target to expand the number of schools in the HealthierUS School Challenge. As of September 30, 2011, 

there were 1,631 certified schools, well above the target of 1,350. These schools must meet rigorous 

standards for the quality of the food they offer at school. USDA is updating nutrition standards for 

federally-subsidized school meals to ensure consistency with the Dietary Guidelines for Americans. In 

January 2011, the Department published a proposed rule to update school meals nutrition standards based 

on IOM recommendations.

Goal 6: By the end of 2011, reduce the number of households with children who experience very low food 

security by 100,000. USDA’s indicators suggest it did not achieve the target of 100,000 fewer children 

with very low food security. The number of households with low food security among children is 

estimated at 434,000, while the fourth quarter FY 2011 target was 350,000. Annual survey data for 2010, 

however, show a lower prevalence of very low food security among children than predicted by the 

quarterly estimates. Since the quarterly estimates are based only on changes in unemployment and food 

prices, this difference may show the positive impact of nutrition assistance programs in addressing food 

insecurity. In addition, Since there is a lag in data availability, USDA will not be in a position to 

definitively report on whether the agency achieved its targets until annual survey data for 2011 are 

available. The Department successfully met all 11 milestones for this goal. Accomplishments include 
FY 2011 Summary of Performance and Financ ial Information

15

awarding Hunger Free Community Grants and launching a partnership to end child hunger. USDA also 

strengthened the Summer Food Service Program through incentives to extend the duration of program 

operations, funding for enrichment activities at summer sites, non-congregate meals-on-wheels in rural 

areas, and “backpack” food packages for consumption over weekends. 

Goal 7: By the end of calendar year 2011, evaluate USDA-supported strategies that made healthy food 

available to low-income Americans to demonstrate private and public sector efforts that can increase the 

availability of healthy foods. USDA is on target to achieve the priority goal on healthy and affordable 

food. USDA is completing a Healthy Food Access Report that evaluates food access strategies.

Goal 8: Reduce the case rate due to Salmonella in Food Safety Inspection Service (FSIS)-regulated 

products to 5.3 cases per 100,000. Compared to the baseline period, this represents a reduction of 

approximately 22,600 illnesses, and an illness-cost reduction of $404 million.

• During the period of time it spent working on the Food Safety Priority Goal, FSIS attained the 

majority of its Priority Goal milestones. This effort resulted in advancements in the fight against 

Salmonella illnesses. FSIS implemented the Salmonella Initiative Program in establishments, 

published a Federal Register Notice on the program, published tighter performance standards for 

Salmonella, began phased-in implementation of a new Public Health Information System (PHIS), 

and trained personnel on this system, and began conducting baseline studies relating to Salmonella

prevalence on hogs, chicken parts, and pre-pasteurized egg products. USDA and the U.S. 

Department of Health and Human Services also jointly launched a national multimedia campaign, 

including national television ads by the Ad Council, to help families prevent foodborne illness.

• Despite these efforts, many of which are longer-term in nature, the third-quarter FY 2011 target for 

reducing Salmonella was unmet. U.S. Centers for Disease Control (CDC) data lag real time by at 

least one full fiscal year quarter. CDC reports a case rate of 6.28 cases of Salmonella per 100,000 

people as compared to a goal of 5.32 cases. Consequently, until early CY 2012, FSIS will not be in a 

position to definitively report on whether FSIS has achieved its FY 2011 Food Safety Priority Goal. 

Goal 9: By 2011, increase the prosperity of rural communities by concentrating and strategically investing 

in 8-10 regions, resulting in the creation of strong local and regional economies, with a particular 

emphasis on food systems, renewable energy, broadband-based economies, and rural recreation. In 

FY 2011, USDA made great strides through this goal to foster, develop and sustain innovation and 

entrepreneurship in rural and urban economies. The Department developed a portfolio of targeted 

regional innovation projects, all derived from the Rural Business Opportunity Grant (RBOG) program.

The regional projects are in California, Iowa, North Dakota, South Carolina, the Pacific Northwest, 

Vermont, and tribal lands in Washington State. Accomplishments of the regional projects include:

• California - expanding rural-urban collaboration for movement of farm goods and biofuels and 

related infrastructure deployment;

• Iowa - providing 1-year business training for new food producer businesses;

• North Dakota - engaging more than 400 people in community and economic development to sustain 

and empower a rural network of community leaders;

• South Carolina - increasing the number of agribusiness projects that have considered marketing in 

the targeted region; 

• Pacific Northwest - increasing connections between producers, consumers, and emergency food 

assistance; 

• Vermont – developing links with other programs to address goat milk producer’s needs; and 

• Washington tribal lands - completing a draft feasibility study for the use of woody biomass in the 

Quinault Indian Nation.
FY 2011 Summary of Performance and Financ ial Information

16

Financial Statement Highlights

Budgetary Resources

USDA receives most of its funding from appropriations authorized by Congress and administered by the 

U.S. Department of the Treasury. Total budgetary resources consist of the balance at the beginning of the 

year, appropriations received during the year, spending authority from offsetting collections and other 

budgetary resources. Total budgetary resources were $214.4 billion for FY 2011 compared to $225.3 

billion in FY 2010, a decrease of $10.9 billion. 

The unobligated balance brought forward including recoveries of prior year unpaid obligations decreased 

$0.9 billion, budget authority net of transfers and resources temporarily not available decreased $10.2 

billion and budgetary resources permanently not available decreased $0.2 billion.

Obligations Incurred And Net Outlays

Obligations incurred decreased $5 billion in 

FY 2011. This decrease is primarily due to a $10.5 

billion decrease at RD for the American Recovery 

and Reinvestment Act (ARRA); $2.3 billion 

decrease at CCC primarily for the Conservation 

Reserve and Commodity Purchase Programs; $1.8 

billion decrease at FSA primarily for the Disaster Trust Fund, Agricultural Disaster Transition Assistance 

Recovery Act Fund, and the Supplemental Assistance Fund offset by a $8 billion increase at FNS for the 

Commodity Assistance Program, the Supplemental Nutrition and Assistance Program, and the Women, 

Infants and Children Program; and $2.7 billion increase for indemnities at RMA.

Net Outlays increased $9.8 billion in FY 2011. This increase is primarily due to a $8.3 billion increase at 

FNS for the Commodity Assistance Program, the Supplemental Nutrition and Assistance Program, and 

the Women, Infants and Children Program; $1.6 billion increase at RMA for indemnities paid; $1.3 

billion increase at RD primarily for Distance Learning, Telemedicine and Broadband Programs offset by 

a $1.4 billion decrease at FSA primarily for the Disaster Trust Fund, Agricultural Disaster Transition 

Assistance Recovery Act Fund, and the Supplemental Assistance Fund; and $1.1 billion decrease at CCC 

for the Average Crop Revenue Election (ACRE), and Counter Cyclical programs.

2011 2010

% 

Change

Total Budgetary 

Resources 

$214,472 $225,385 -5%

Obligations Incurred $183,630 $188,668 -3%

Net Outlays $145,505 $135,634 7%

Data in millions
FY 2011 Summary of Performance and Financ ial Information

17

BALANCE SHEET

Condensed Balance Sheet Data

AS OF SEPTEMBER 30, 2011 AND 2010(in millions)

FY 2011 FY 2010 % CHANGE

Fund Balance with Treasury $74,126 $75,805 -2%

Accounts Receivable, Net 8,225 7,608 8%

Direct Loan and Loan Guarantees, Net 92,042 89,405 3%

General Property, Plant and Equipment, Net 3,050 2,964 3%

Other 685 626 9%

Total Assets 178,128 176,408 1%

Debt 89,583 87,915 2%

Loan Guarantee Liability 3,621 2,857 27%

Benefits Due and Payable 3,500 3,356 4%

Other 39,548 34,796 14%

Total Liabilities 136,252 128,924 6%

Unexpended Appropriations 30,469 36,261 -16%

Cumulative Results of Operations 11,407 11,223 2%

Total Net Position 41,876 47,484 -12%

Total Liabilities and Net Position $178,128 $176,408 1%

Total Assets

Total assets increased $1.7 billion in FY 2011. This increase is primarily due to an increase in Direct 

Loan and Loan Guarantees, Net of $2.6 billion; and an increase in Accounts Receivable, Net of $0.6 

billion; offset by a decrease in Fund Balance with Treasury of $1.6 billion. 

Direct Loan and Loan Guarantees, Net is the single largest asset on the USDA Balance Sheet. RD offers 

both direct and guaranteed loan products for rural housing and rural business infrastructure. These 

represent 87 percent of the total USDA loan programs. Loan programs administered by the FSA 

represent 8 percent of the total. FSA provides support to farmers who are temporarily unable to obtain 

private, commercial credit. The remaining 5 percent represents commodity loans and credit programs 

administered by CCC. CCC’s loans are used to improve economic stability and provide an adequate 

supply of agricultural commodities. CCC credit programs provide foreign food assistance, expand foreign 

markets and provide domestic low-cost financing to protect farm income and prices.

Total Liabilities

Total liabilities increased $7.3 billion in FY 2011. This increase is primarily due to a $1.6 billion increase 

in Debt, a $0.7 billion increase in Loan Guarantee Liability, and a $4.7 billion increase in other liabilities. 

Debt represents amounts owed primarily to Treasury by CCC and RD. For CCC, the debt primarily 

represents financing to support Direct and Counter Cyclical, Crop Disaster and Loan Deficiency 

programs. For RD, the debt primarily represents financing to support Electric and Housing loan 

programs. 

Total Net Position

Total net position decreased $5.6 billion in FY 2011. This decrease is due to a decrease in unexpended 

appropriations of $5.7 billion offset by an increase in cumulative results of operations of $0.1 billion.
FY 2011 Summary of Performance and Financ ial Information

18

NET COST OF OPERATIONS

Condensed Statement Of Net Cost

For the Years Ended September 30, 2011 and 2010

(in millions)

FY 2011 FY 2010

% 

CHANGE

Goal 1: Assist Rural Communities to Create Prosperity so They 

Are Self-Sustaining, Repopulating, and Economically Thriving: $27,948 $20,611 36%

Goal 2: Ensure Our National Forests and Private Working Lands 

Are Conserved, Restored, and Made More Resilient to Climate 

Change, While Enhancing Our Water Resources: 12,128 11,134 9%

Goal 3: Help America Promote Agricultural Production and 

Biotechnology Exports as America Works to Increase Food 

Security: 3,103 2,856 9%

Goal 4: Ensure that All of America’s Children Have Access to 

Safe, Nutritious, and Balanced Meals: 105,668 97,837 8%

Net Cost of Operations $148,847 $132,438 12%

Net Cost of Operations

Net cost of operations increased $16.4 billion in FY 2011. This increase is primarily due to an increase at 

RMA of $7.6 billion as a direct result of the estimated higher indemnities for reinsurance year 2011 due 

to the combination of increased premium and significant weather conditions; and an increase at FNS of 

$7.9 billion due to increased costs and higher participation in the Supplemental Nutrition and Assistance 

Program resulting from higher unemployment and natural disasters.

Stewardship Investments

Stewardship investments are substantial investments made by the Federal Government for the benefit of 

the Nation but are not physical assets owned by the Federal Government. When incurred, they are 

treated as expenses in determining the net cost of operations. However, these items merit special 

treatment so that users of Federal financial reports know the extent of investments that are made for longterm benefit. Such investments are measured in terms of expenses incurred for non-Federal physical 

property, human capital, and research and development.

Limitations of the Financial Statements

The principal financial statements have been 

prepared to report the financial position and results 

of operations of the entity, pursuant to the 

requirements of 31 U.S.C. 3515(b).

2011 2010

% 

Change

Non-Federal Physical 

Property 

$76 $77 -1%

Human Capital $623 $652 -4%

Research and 

Development

$2,252 $2,307 -2%

Data in millions
FY 2011 Summary of Performance and Financ ial Information

19

While the statements have been prepared from the books and records of the entity in accordance with 

generally accepted accounting principles for Federal entities and the formats prescribed by U.S. Office of 

Management and Budget (OMB), the statements are in addition to the financial reports used to monitor 

and control budgetary resources, which are prepared from the same books and records.

The statements should be read with the realization that they are for a component of the U.S. 

Government, a sovereign entity.

Financial Management Systems

The Financial Management Modernization Initiative (FMMI) Project was initiated to modernize 

USDA’s outdated financial system technology. FMMI is replacing the Corporate Financial Management 

System (CFMS), including the mainframe-based Foundation Financial Information System (FFIS), with 

Systems, Applications, and Products Enterprise Resource Planning 6.0, migrating the current distributed, 

multi-instance mainframe system to a federally compliant, consolidated, single-instance Web-based 

system. FMMI is operational and nearly complete. It has resulted in the following accomplishments: 

• Continued implementation of a core financial system to replace USDA’s 9 general ledger systems; 

• Has been implemented in 25 of the 29 agencies and offices that form the Department;

• Began production of a data warehouse for financial statement, and standard and ad hoc reporting; and

• Stayed on track for schedule, cost, and performance.

FMMI has the following key attributes:

• Integration with eGovernment Travel Services, ePayroll, Grants.gov, and eLoans; corporate solutions 

for which results must be reflected in the budgetary and general ledger accounts of the Department 

(e.g., asset management and procurement); and program-specific systems that support the general 

ledger;

• Integration with performance management and budgeting, allowing USDA to meet management’s 

objects and Government and Performance Results Act requirements; and

• Compliance with Federal Financial Management Improvement Act (FFMIA), including Federal 

financial management system requirements, applicable Federal accounting standards, and U.S. 

Government Standard General Ledger at the transaction level.

The FMMI project addresses the need for improved financial performance through a modern financial 

system that provides maximum support to the mission and USDA’s financial objectives, including: 

• Ensuring that financial management systems support data integrity, reliability, and consistency across 

the Department and for the community of direct users;

• Providing online, on-demand querying capabilities and access to reports for financial managers and, 

ultimately, program managers (new users);

• Ensuring that information and reports are clearly communicated and organized in a format that 

promotes understanding, and is directly relevant to the needs of end users;

• Providing technology that supports future growth and changes in requirements;

• Promoting USDA’s credibility and trust with Congress, the Executive Office of the President, and 

the public by demonstrating full compliance with financial laws, regulations, and Federal financial 

standards, including maintaining an unqualified audit opinion;

• Ensuring that the investment advances the Department’s strategic plan, including its responsiveness 

to the fulfillment of mandates such as Federal core financial management system requirements;

• Demonstrating the strategic use of USDA’s human capital by supporting the realignment from 

internally focused positions to decision-support or citizen-facing roles, and enhancing workplace 

desirability for current and future financial employees;
FY 2011 Summary of Performance and Financ ial Information

20

• Demonstrating the strategic use of the Department’s information technology (IT) by leveraging IT 

within USDA and across the Government to facilitate streamlining and unification of services; and

• Demonstrating good stewardship of public funds by securing the best performance and highest 

measure of accountability in the use of taxpayer dollars.
Systems, Controls, and Legal Compliance 

Management Assurances 

STATEMENT OF ASSURANCE

The U.S. Department of Agriculture (USDA) is providing a qualified 

statement of assurance that its management has established and maintained 

effective internal controls over financial reporting and financial management 

systems. These controls meet the objectives of the Federal Managers’ 

Financial Integrity Act (FMFIA), with the exception of two material 

weaknesses in internal controls over financial reporting, and one financial 

system non-conformance. Management is providing reasonable assurance 

that the internal controls over operations are effective. The details of the exceptions are 

provided in the FMFIA and the Federal Financial Management Improvement Act sections of this 

report. 

USDA assessed its financial management systems and internal controls over the effectiveness 

and efficiency of operations and compliance with applicable laws and regulations as of 

September 30, 2011, and financial reporting as of June 30, 2011. The assessment included the 

safeguarding assets and compliance with applicable laws and regulations, in accordance with the 

requirements of Office of Management and Budget (OMB) Circular A-123, “Management’s 

Responsibility for Internal Control.”

Other than the exceptions noted, USDA financial management systems conform substantially 

with the objectives of FMFIA, internal controls were operating effectively, and no other material 

weaknesses were found in the design or operation of the internal control over 1) the 

effectiveness and efficiency of operations and compliance with applicable laws and regulations 

as of September 30, 2011, and 2) financial reporting as of June 30, 2011. 

Thomas J. Vilsack

Secretary of Agriculture 

November 15, 2011 
FY 2011 Summary of Performance and Financ ial Information

22

Federal Managers’ Financial Integrity Act Report on Management Control

BACKGROUND

FMFIA requires ongoing evaluations of internal control and financial management systems. These 

evaluations lead to an annual statement of assurance that:

• Obligations and costs comply with applicable laws and regulations;

• Federal assets are safeguarded against fraud, waste, and mismanagement;

• Transactions are accounted for and properly recorded; and

• Financial management systems conform to standards, principles, and other requirements to ensure 

that Federal managers have timely, relevant, and consistent financial information for decision-making 

purposes.

USDA annually evaluates its internal controls over financial reporting in accordance with OMB Circular 

A-123, “Management’s Responsibility for Internal Control,” Appendix A, “Internal Control Over 

Financial Reporting” (A-123, Appendix A).

The Department operates a comprehensive internal control program. This program ensures compliance 

with the requirements of FMFIA and other laws and OMB Circulars A–123, Appendix A, and A–127, 

“Financial Management Systems.” All USDA managers must ensure that their programs operate 

efficiently and effectively, and comply with relevant laws. They must also ensure that financial 

management systems conform to applicable laws, standards, principles, and related requirements. In 

conjunction with the Office of Inspector General (OIG) and the Government Accountability Office 

(GAO), the Department’s management works aggressively to determine the root causes of its 

material weaknesses so that it can direct resources to focus on their remediation.

USDA remains committed to reducing and eliminating the risks associated with its deficiencies. It also 

strives to efficiently and effectively operate its programs in compliance with FMFIA.

FY 2011 Results

USDA has two existing material weaknesses: Information Technology and Financial Reporting – 

Unliquidated Obligations. There is one system non-conformance: Funds Control Management. Thus, 

the Secretary’s Statement of Assurance provides qualified assurance that USDA’s system of internal 

controls complies with FMFIA objectives. The following exhibit summarizes the results reported in 

USDA’s Consolidated Financial Statements Audit Report.

Exhibit 1: Summary of Financial Statement Audit

Audit Opinion Unqualified

Restatement No

Material Weakness

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

Improvement Needed in Overall Financial 

Management

1 1

Improvements Needed in Information Technology 

Security and Controls

1 1 

TOTAL MATERIAL WEAKNESSES 2 2

The following exhibit lists USDA’s material weaknesses and the financial system non-conformance as 

related to management’s assurance for FMFIA and the certification for FFMIA.
FY 2011 Summary of Performance and Financ ial Information

23

Exhibit 2: Summary of Management Assurances

Effectiveness of Internal Control Over Financial Reporting (FMFIA § 2)

Statement of Assurance Qualified 

Material Weakness

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

Information Technology 1 1

Financial Reporting – Unliquidated 

Obligations

1 1

TOTAL MATERIAL WEAKNESSES 2 2 

Effectiveness of Internal Control Over Operations (FMFIA § 2)

Statement of Assurance Unqualified

Material Weakness

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

TOTAL MATERIAL WEAKNESSES 0 0 0

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of Assurance Qualified

Material Weakness

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

Funds Control Management 1 1

TOTAL NON-CONFORMANCE 1 1

Compliance with Federal Financial Management Improvement Act (FFMIA)

Agency Auditor

Overall Substantial Compliance No No

1. System Requirements No No

2. Accounting Standards No No

3. United States Standard General Ledger at 

Transaction Level

No No

4. Information security policies, procedures, 

and practices

No No

Summary of Outstanding Material Weaknesses

Material Weakness 

Existing

1. USDA Information Technology (IT) Overall Estimated Completion Date FY 2012

Internal control design and operating effectiveness deficiencies occurred in four areas: logical access 

controls/personnel security, configuration management, physical access and environmental protection, and 

contingency planning. These deficiencies represent an overall IT material weakness.

FY 2011 Accomplishments: FY 2012 Planned Actions:

• Continued implementation of Homeland Security Presidential 

Directive 12 (HSPD-12) Identity, Credential, and Access 

Management (ICAM) initiatives to provide improved logical and 

physical access control to USDA IT systems and facilities;

• Completed majority of the ICAM functional requirements cases;

• Continued implementation of Security Operations Centers to 

increase real-time operational security monitoring of USDA 

networks;

• Deployed 11 remote network monitoring sites;

• Implemented Endpoint Security Whole Desk Encryption to 99 

• Continue development of IT Security Architecture that 

incorporates automated tools for network monitoring and 

situational awareness;

• Implement the continuous monitoring and continuous 

assessment initiatives in accordance with the National Institute 

of Standards and Technology (NIST);

• Continue outreach and education programs to ensure USDA’s 

Chief Information Officers (CIOs) are fully informed and 

participating in OCIO IT Security initiatives;

• Continue to improve the security governance process by 
FY 2011 Summary of Performance and Financ ial Information

24

Material Weakness 

Existing

1. USDA Information Technology (IT) Overall Estimated Completion Date FY 2012

Internal control design and operating effectiveness deficiencies occurred in four areas: logical access 

controls/personnel security, configuration management, physical access and environmental protection, and 

contingency planning. These deficiencies represent an overall IT material weakness.

FY 2011 Accomplishments: FY 2012 Planned Actions:

percent of its end-user systems and servers;

• Monitored agency-wide Federal Desktop Core Configuration 

compliance and software patch installation;

• Institutionalized the Risk Management Framework, which provides 

increased real-time security control assessment and continuous 

monitoring; and

• Ensured key IT security controls are tested annually for all 

systems.

further implementation of the Risk Management Framework as 

outlined in NIST security requirements; 

• Continue monitoring, investigating, reporting of compliance 

and remediation of non-compliance to Department policies, 

guidance, processes, and procedures;

• Improve agency oversight and compliance with USDA and 

NIST security requirements; and

• Reduce the security risks associated with USDA IT Systems.

Material Weakness 

Existing

2. Financial Reporting – Unliquidated 

Obligations

Overall Estimated Completion Date FY 2012

Lack of consistent review and follow-up on unliquidated obligations (ULO). (Department and NRCS)

FY 2011 Accomplishments: FY 2012 Planned Actions:

Department:

• Worked with USDA agencies to complete cleanup of obligations 

recorded in the Foundation Financial Information System (FFIS) and the 

Financial Management Modernization Initiative (FMMI);

• Reviewed close-out and deobligation procedures for procurements 

recorded in the Integrated Acquisition System (IAS), Greenbook 

reimbursable agreements, and other interagency obligations to ensure 

timely communication and close-out of obligations;

• Improved agency monitoring of unliquidated obligations via monthly 

working group meetings;

• Provided monthly scorecard in the Chief Financial Officer (CFO) Council 

to track status of unliquidated obligations;

• Distributed ULO aging reports to USDA agencies;

• Reviewed quarterly certifications by agency CFOs; and

• Monitored monthly corrective action status reports on review of 

unliquidated obligations under OMB Circular A-123, Financial Reporting, 

Appendix A.

NRCS:

• Created a risk-based statistical sample that segments the obligation 

population, then selected samples for testing and performed testing on a 

quarterly basis;

• Increased accountability by including an unliquidated obligation 

performance objective in the performance plans of State 

Conservationists;

• Provided training for open obligation reviews that address audit findings; 

and

• Published procedures for fund certification. 

Department : 

• Draft memorandum to obtain leadership commitment to properly 

monitor and review obligation balances from the Office of the Secretary 

to all USDA Senior Executives;

• Continue working with USDA agencies to complete cleanup of 

obligations recorded in FFIS and FMMI; and

• Continue monthly review of corrective action status reports on review of 

unliquidated obligations under OMB Circular A-123, Financial 

Reporting, Appendix A.

NRCS:

• Increase monitoring and testing of open obligations;

• Complete a review of and enhance the OMB Circular A-123, Financial 

Reporting, Appendix A program for open obligations; unrecorded 

obligations, and non-referencing transactions and provide feedback to 

reporting activities; and 

• Evaluate number and skill of resources at headquarters and State level 

to perform required obligation and related accrual activities.
FY 2011 Summary of Performance and Financ ial Information

25

SUMMARY OF OUTSTANDING SYSTEM NON-CONFORMANCE

System NonConformance

Existing

1. Funds Control Management Overall Estimated Completion Date FY 2013

System improvements needed in recording obligations at the transactions level. (CCC)

Non-compliance with Federal Financial Management Improvement Act of 1996. (NRCS and CCC))

FY 2011 Accomplishments: FY 2012 Planned Actions:

CCC: 

• Completed transaction level obligations for the Conservation Reserve 

Program (CRP), Annual Rental Program as well as additional Farm 

Program;

• Web Based Supply Chain Management (WBSCM) programs were 

incorporated into Electronic Funds Management System (eFMS) as those 

programs were moved from the Processed Commodities Inventory 

Management System (PCIMS) to WBSCM. PCIMS is presently being 

decommissioned; and

• Continued to develop the Modernize and Innovate Delivery Agricultural 

Systems (MIDAS) project, and ensured that the financial requirements are 

clearly captured in the design of the system.

NRCS:

• Implemented an administrative trainee program to assist a pipeline of 

employees in financial management;

• Deployed detailed procedures and training on obligations; reimbursable 

agreements, leases, property, and advances;

• Instituted processes to ensure financial statements are reviewed and 

approved by management;

• Worked with OCFO to obtain appropriate posting models for conservation 

easements, travel advances to others, cumulative results of operations for 

non-appropriated fund recoveries of prior years obligations, and accounts 

receivable with the public;

• Implemented an enhanced Office of Management and Budget (OMB) 

Circular A-123, “Management’s Responsibility for Internal Control” program

• Ensured the completeness of unfilled customer order population;

• Established a robust procedure for monitoring of unliquidated obligations; 

and

• Made significant improvements to document the completion of stewardship 

land.

CCC:

• Complete software modifications to program applications to send 

obligation transactions; and

• Continue to select and implement software, while migrating to the 

Department’s enterprise solution under FMMI.

NRCS:

• Hire additional staff with experience in financial statement 

preparation and reporting; 

• Establish controls for the reporting of human capital and research 

and development costs as part of Requirement Supplementary 

Stewardship information;

• Perform asset valuation reviews to improve property and deferred 

maintenance reporting;

• Continue improvements regarding stewardship reporting, 

particularly the condition of closed easements;

• Continue improvements in IT general and application access 

controls;

• Continue to evolve a more robust A-123 program; and

• Implement an agency wide Compliance Review Program to ensure 

compliance with applicable laws, regulations, and policies.

Federal Financial Management Improvement Act Report on Financial Management Systems

BACKGROUND

FFMIA is designed to improve financial and program managers’ accountability, provide better 

information for decision-making, and improve the efficiency and effectiveness of Federal programs. 

FFMIA requires that financial management systems provide reliable, consistent disclosure of financial 

data in accordance with generally accepted accounting principles and standards. These systems must also 

comply substantially with: 1) Federal Financial Management System requirements; 2) applicable Federal 

accounting standards; and 3) the U.S. Standard General Ledger at the transaction level. Additionally, the 

Federal Information Security Management Act (FISMA) requires that there be no significant weaknesses 

in information security policies, procedures, or practices to be substantially compliant with FFMIA. The 

following exhibit contains the outstanding initiatives to achieve compliance.
FY 2011 Summary of Performance and Financ ial Information

26

Exhibit 3: Initiatives To Be Completed

Outstanding Initiatives to Achieve FFMIA Compliance

Initiative

Section of

Non-compliance Agency

Target 

Completion Date

Information Technology1 Federal Financial Management System 

requirements, and Information security 

policies, procedures, and/or practices.

Multiple

CCC

9/30/2012

3/30/2013

Funds Control Management Federal Financial Management System 

requirements and U.S. Standard 

General Ledger at the transaction 

level.

CCC 09/30/2012

Federal Financial Management System 

requirements, Federal Accounting 

Standards, and U.S. Standard General 

Ledger at the transaction level.

NRCS

FAS 

11/30/2013

9/30/2012

1 The information technology material weakness, which is reported in the Federal Managers’ Financial Integrity Act Report on Management Control, is 

comprised of four issues: logical access controls/personnel security, configuration management, physical access and environmental protection, and contingency 

planning.

FY 2011 RESULTS

During FY 2011, USDA evaluated its financial management systems to assess substantial compliance 

with the act. In assessing FFMIA compliance, the Department considered auditors opinions on 

component agencies’ financial statements, and progress made in addressing the material weaknesses 

identified in the FY 2010 Performance and Accountability Report (PAR). The Department is not compliant 

with Federal Financial Management System requirements, Federal accounting standards, and the 

standard general ledger at the transaction level. Additionally, as reported in the FMFIA section of this 

report, USDA continues to have weaknesses in information technology controls that result in noncompliance with the FISMA requirement. As part of USDA’s financial systems strategy, USDA agencies 

continue working to meet FFMIA and FISMA objectives.

In FY 2011, FAS identified serious deficiencies in its financial management operations performed by its 

service provider. As a result, FAS was unable to assure that its financial management systems provide 

reliable, consistent disclosure of financial data in accordance with generally accepted accounting principles 

and standards.

The FAS Administrator evaluated alternative financial service providers and selected APHIS as the 

service provider. FAS records were transitioned to APHIS in the fourth quarter of 2011. APHIS has 

begun performing accounting operations. FAS will appoint a new Chief Financial Officer in the first 

quarter of FY 2012. FAS also engaged a team of Government employees supplemented by contract 

professionals to establish and document its financial processes. In 2012, FAS will complete a thorough 

test of the new procedures to evaluate operational effectiveness.

Forest Service resolved its deficiencies related to IT General Computer Controls to comply with 

information security, policies, procedures, and practices.

Federal Financial Management System Requirements

CCC has completed the development of a fully integrated funds control system, the Electronic Funds 

Management System (eFMS), within the FSA/CCC core financial management system. This system is 

integrated with CCC’s general ledger system at the transaction level. eFMS provides management with 

timely information to monitor and control the status of budgetary resources recorded in the general 

ledger. Work continues to implement programs into eFMS for full funds control at a transaction level.
FY 2011 Summary of Performance and Financ ial Information

27

CCC Legacy Systems

The CCC’s mission critical financial applications are supported in multiple environments including the 

mainframe, Web farm, and the AS/400/S36. 

The AS400/S36 Operating Systems required to support some of these CCC applications delivered from 

this environment are no longer supported by the vendor. The applications run in the S/36 Virtual 

Machine environment as a “guest” of the OS/400 operating system, release V4R4. Later releases of the 

OS/400 operating system do not support the System/36 virtual machine and the S/36 operating system. 

The AS400 operating system version V4R4 is no longer supported by IBM. The current hardware is no 

longer manufactured by IBM. Maintenance of the AS400 hardware is supported through a third-party 

contractual agreement. FSA has applied all available patches and a final cumulative patch release to the 

environment at the IBM end-of-service period. Even though patches are no longer being provided and 

applied, the environment has not experienced exploitations or attacks, and is deemed stable from a 

performance perspective. 

FY 2011 CCC accomplishments include:

• Posting $9.3 billion in obligations at the transaction level through eFMS. The $9.3 billion 

represented 22 programs of which 15 were new. Those new programs included: 

• Advances from AMS Section 32;

• Biomass Crop Assistance Program;

• Conservation Reserve Program;

• Food for Progress;

• Food for Education;

• Food and Nutrition Service’s Emergency Food Assistance Program, Commodity Supplemental Food 

Program and the Nutrition Services Incentives Program; 

• Vessel Loading Observation; and

• Public Law 480, Title II.

In FY 2012, CCC will work on:

• Converting more programs into eFMS for transaction level obligations; and 

• Continue development of the Modernize and Innovate the Delivery of Agricultural Systems 

(MIDAS) project and make certain that the financial requirements needed to ensure compliance with 

FMFIA are captured in the software design, including retirement of the CCC Legacy Systems.

NRCS

NRCS has made significant improvements for appropriate posting models for obligation recoveries, bad 

debt allowances, advances, and accounts receivables. However, deficiencies have been noted on 

Information Security Policies, Procedures, and Practices for lack of anti-virus software on certain servers, 

employees’ background investigations, conducting vulnerability scanning, and month-to-month 

remediation of critical vulnerabilities.

Substantial improvements have been taken regarding the completion of stewardship land as part of 

financial reporting. NRCS expects to fully meet the reporting requirements on the condition of 

stewardship land in FY 2012, and for deferred maintenance on real property in FY 2013. 

NRCS continues working to mitigate auditor-identified deficiencies and substantially comply with 

FFMIA. These are the deficiencies found:

• Federal Financial Management System Requirements: NRCS’s systems were unable to :
FY 2011 Summary of Performance and Financ ial Information

28

− Provide timely extracts for audit purposes;

− Allow for the authority beyond 10 years of availability; and

− Prevent the recording of invalid upward and downward adjustments

• Applicable Federal Accounting Standards: Deficiencies on net position balances, obligations 

recoveries, current year activity, obligations incurred, accruals, undelivered orders, leases, real and 

personal property, advances, stewardship reporting and deferred maintenance;

• Information Security Policies Procedures and Practices: Deficiencies in general and application access 

controls; and

• Standard General Ledger at the Transaction Level: Deficiencies in recoveries of prior year obligations 

paid and unpaid.

In FY 2012, NRCS will:

• Improve general and application access controls; and 

• Improve stewardship reporting.

In FY 2013, NRCS will:

• Record in accordance with Federal accounting standards; 

• Beginning net position balances and current-year activity; 

• Obligation recoveries; 

• Accruals; 

• Obligations; 

• Leases; 

• Real and personal property; 

• Advances; 

• Deferred maintenance; 

• Comply with the Standard General Ledger posting models; and

• Recoveries of prior obligations paid and unpaid. 

Eliminating Improper Payments

The Improper Payments Information Act (IPIA) of 2002 is designed to identify programs susceptible to 

significant improper payments and reduce the amount and number of erroneous payments. IPIA’s goal is 

to improve the integrity of the government's payments and the efficiency of its programs and activities.

USDA first reported on improper payments in the 2004 Performance and Accountability Report (PAR) 

by disclosing error rates and amounts for the Supplemental Nutrition Assistance Program (SNAP) and 

the Federal Crop Insurance Corporation Program (FCIC). The Department currently has 16 programs 

considered at risk for significant improper payments. A program with significant improper payments has 

both a 2.5 percent error rate of the total program outlays and at least $10 million in improper payments. 

Measuring and reporting improper payments is mandatory for five of the programs included under the 

former Section 57 of OMB Circular A-11, Preparation, Submission, and Execution of the Budget. 

USDA identified the additional 11 programs at risk of significant improper payments through the 

Departmental risk assessment process. The risk assessment process is used to review USDA programs and 

activities and identify those that are susceptible to significant improper payments.

IPIA requires that agencies measure their improper payments annually, establish reduction targets and 

corrective action plans and track the results annually to ensure that the corrective actions are effective. 

USDA’s Office of the Chief Financial Officer (OCFO) issued specific policy guidance including 
FY 2011 Summary of Performance and Financ ial Information

29

templates and timelines for implementing IPIA. USDA continues to make progress in accurately 

measuring and reporting improper payments, developing and implementing corrective actions, and 

recovering improper payments.

USDA’s improper payment error rate of 5.37 percent for FY 2011, which is the same error rate reported 

in FY 2010. However, due to a $7.1 billion increase (8 percent) in high risk program outlays from 

FY 2010 to FY 2011, USDA’s estimated improper payments amount were $5.4 billion for FY 2011, more 

than the estimated $5.0 billion in FY 2010. The increase in outlays was largely attributable to the increase 

in demand for food and nutrition assistance due to the economic downturn. Also affecting the improper 

payment error rate and amount for FY 2011 is the initial reporting of an error rate for the certification 

component of FNS’ Women, Infants and Children program. The following FY 2011 results demonstrate 

that progress is being made to reduce improper payments:

• Seven USDA high-risk programs reported improper payment error rates lower than their FY 2010 

error rate;

• Four USDA high-risk programs reported error rates below their reduction targets for FY 2011; 

• Forest Service’s Wildland Fire Suppression Management Program error rate of 0.00 percent was 

below its target of 0.02 percent and equal to its FY 2010 error rate of 0.00 percent;

• FNS’ SNAP FY 2010 error rate of 3.81 percent, which is reported in FY 2011, was less than its target 

of 4.36 percent and less than its FY 2009 error rate of 4.36 percent, which was reported in FY 2010. 

The SNAP error rate is a historic low for the program. This is the seventh year in a row the 

program’s error rate has been less than 6 percent. SNAP error rates are reported the following year 

because all data are not available to perform the statistical sample before required annual reporting;

• FSA’s Market Assistance Loan Program error rate of 0.52 percent was below its target of 0.81 

percent, and below its FY 2010 error rate of 0.81 percent;

• FSA’s Noninsured Assistance Program error rate of 8.97 percent was below its FY 2010 error rate of 

11.65 percent;

• FSA’s Direct and Counter-Cyclical Program error rate of 0.05 percent was below its FY 2010 error 

rate of 0.96 percent, and below its target of 0.40 percent; and 

• RMA’s FCIP error rate of 4.72 percent was below its FY 2010 error rate of 6.05 percent.

The root causes of improper payments are summarized into the error categories of administrative, 

verification, and authentication. Administrative errors relate to the accuracy of the entry, classification, or 

processing of information associated with applications, supporting documents, or payments. Verification 

errors relate to verifying recipient information such as earnings, income, assets, work status, etc. 

Authentication errors relate to authenticating the accuracy of qualifying for program specific 

requirements, criteria, or conditions. 

For FY 2011, the root causes of USDA improper payments were categorized as:

• Two percent attributable to administrative error;

• Ninety-seven percent attributable to verification error; and

• One percent attributable to authentication error.

Actions taken by USDA during FY 2011 include:

• Developing and issuing a request for proposal to solicit payment recapture/recovery auditing services 

from a private sector recovery auditing contractor; 

• Revising Departmental High-Dollar Quarterly Report guidance for improper payments identified in

high-risk programs to provide additional clarification and transparency;
FY 2011 Summary of Performance and Financ ial Information

30

• Providing semi-annual reporting of additional error measurements for USDA’s high priority 

programs SNAP and National School Lunch Program (NSLP);

• Providing an Annual Accountable Official Report to the USDA Inspector General for the USDA

high-priority programs (SNAP and NSLP);

• Providing Departmental improper payments information for the Government-wide 

PaymentAccuracy.gov Web site that includes key indicators and statistics by program; and

• Completing risk assessments for 46 programs in FY 2011 as scheduled on a 3-year cycle. No new 

programs were declared high risk as a result of the risk assessments. 

USDA’s goals are to achieve reduction of improper payments and implement a Payment 

Recapture/Recovery Auditing (PRRA) initiative during FY 2012. In addition to meeting the 

requirements of the IPIA, USDA will continue to implement the requirements of Executive Order 13520 

on reducing improper payments, Presidential Memorandums on enhancing payment accuracy and 

recapturing improper payments, and the Improper Payments Elimination and Recovery Act of 2010 

(IPERA).

USDA’s actions planned for FY 2012 include:

• Awarding a Departmental contract and implementing initiative for payment recapture/recovery 

auditing services to address IPERA requirements for identifying, preventing and recovering 

overpayments;

• Developing and implementing policy based on OMB guidance to be provided in FY 2012 regarding 

the “Do Not Pay List” and the GOVerify portal; 

• Develop and implementing policies, controls, procedures, and checklists at appropriate levels to 

reduce improper payments;

• Creating aggressive correction plans that target the verification, authentication, and administrative 

root causes of errors and address internal control issues for each program;

• Providing training to field personnel and cooperative partners that address specific issues found in 

internal controls, control procedures, and the potential risks of noncompliance;

• Sustaining accountability at all levels by incorporating the employee’s individual results into their 

annual performance evaluations;

• Providing grants and technical assistance to State agencies aimed at simplifying the application and 

eligibility determination systems of SNAP; and

• Participating in interagency workgroups to assist OMB in developing Government-wide guidance for 

implementing initiatives to reduce, prevent, and recover improper payments and recover 

overpayments.