Office of the Inspector G

Audit of Farm Credit Administr

Records Management and 

Preservation of Institutional Kno

February 21, 2006 
Audit Objective 

To determine whether the Agency haprocess for capturing, maintaining aninstitutional knowledge. 

 Is there a process for capturing and mainta Is the process for capturing and maintaining 

adequate? 

 Is information maintained relevant and usef Is there a mechanism that facilitates the sh

knowledge? 

We conducted our audit from August to DecembThe audit was conducted in accordance with GoStandards. 
Audit Importanc

The Agency’s ability to understand problems; plan strategically; and make informed decisions. Teamwork and collaboration. Productivity and efficiency. The sharing of corporate knowledge. Achievement of the Agency’s mission. 

Costs by elimior unnecessarTime in meetinphone calls anCompartmentainformation. Response time 

Effective Records Management Increases: 

Effective RManageme
Audit Scope 

205 Recordkeeping Systems

104 

Database Systems 
Background
 

	 Policy and Procedures Manual (PPM) 903 Re

Management: This PPM sets forth the records responsibilities of employees, managers and thbriefly describes the records management progbasic records management policy guidance appemployees. 

	 Form 423–Certification of Removal of Copies 

to terminating employment with the Agency, emand complete the certification. This certification ensure that departing employees do not removeto remove from the Agency, nonrecord material

	 Nonrecord materials are, for example, extra 

records, and drafts of memos and letters thasignificant steps in the official evidence of A

	 Official records may not be removed or dest

employee. 

 Records Retention Directive: Listing of reco

central files and a listing of files maintained by e
Capturing Knowle

Is there a process for capturi

maintaining knowledg

 Are policies and procedures in place?
  Are staff aware of their responsibilities?
  Are controls established?
  Is there a mechanism that promotes the o

consideration of new strategies for capturmaintaining information? 
Capturing Knowle

Policies and procedures have been esrecords management. 

 Accessible by all employees on Lotus Not Defines what is considered a Federal reco Outlines employees responsibilities.
  Addresses record retention and disposal.
 
Capturing Knowle

Staff recordkeeping responsibilities aemphasized. 

	 Published articles in FCA This Week on re

management.
 

	 Records management staff periodically m

to discuss records management responsib

	 Records management staff available to an

questions. 
Capturing Knowle

Controls have been established to asscapturing knowledge. 

 Internal Control Program ensures doc

 received by central files.  easily retrieved.  disposed of according to retention 
Capturing Knowle

Controls could be strengthened to ensemployees certify they are not removinonrecord materials upon leaving the 

 Prior to leaving the Agency, employees 

certification for removal of records as paout process. 

	 The records officer signs off on the employee’s check-out f

have received the certification. 

	 The employee’s checkout form is received by payroll/perso

an employee leaving the Agency. 

	 We compared a listing of employees who left the Agency to 

certifications forms completed from October 2003-2005. 

	 Generally, employees were completing nonrecord removal 

completed the nonrecord removal certification forms). 

	 However to strengthen controls, the Office of Management 

that the employee’s check-out record form be thoroughly recompleted with all required signatures prior to the employe
Capturing Knowle

Increased use of electronic processes strategies for maintaining information

 Generally, the Agency’s recordkeeping is fo

to paper” approach for maintaining records. 

 In coming years automated systems and pro

replace paper-based systems and processe

 Recordkeeping practices that existed in the 

may be ignored in transition to electronic buenvironments. 



With the rapid advances and significant growbeing conducted through e-mail traffic and oAgency must examine ways to capture inforpaper-based system. 
Maintaining Informa

Is the process for main

information adequ

 Is the process for developing record

adequate? 

 Is the Agency adequately assessing 

needs and developing new processeinformation? 

 Is there a process to ensure the ong

usefulness of stored information? 
Maintaining Informa

The Information Resource Manageme

good process for recordkeeping systdevelopment. 

 End-users involvement in developing recordk

enhance information use. 

 Cross-functional collaboration between techn

management and staff. 

 Increases mission-focus system designs.  Decrease databases being compartmentalize
Maintaining Informa

The Agency needs to assess its recneeds. 

 During our review we identified 205 reco Our review of various recordkeeping sys

 A couple of databases were developed and never us

OCOO Strategic Plan comments). 

 Some databases were being used for critical Agency 

being managed as official Agency recordkeeping sysdatabases). 

 Some databases receive an onslaught of information 

difficult to manage (e.g. OE institutional database). 

 In addition, there is no real grasp on reco

developed on various offices’ shared drivpersonal workspaces. 
Maintaining Informa

An assessment of the Agency’s businfrom an office level and organizationahelp the Agency identify “what informneeded”.  The assessment should include the following: 

 A complete inventory of the Agency’s existing record system Identification of essential records that must be maintained a Duplication of information.
  Systems that might be replaced by a new record system.
  Senior management and operational staff perspective on wh

maintained. 

 Gaps in records accountability.  Recordkeeping strengths. 
Maintaining Informa

The Agency has a process in place thaensure information maintained remainand useful. 

 The Agency has a centralized records mana

and a liaison person within each office respomaintaining Agency records. 

 The centralized records management staff c

annual reviews on the Agency’s records. Thinclude: 

	 Making sure required documents are being forwarded to ce	 Ensuring that documents are destroyed or sent to permane

to retention periods. 

	 Identifying changes in filing systems (e.g. paper to electron
Maintaining Informa

Annual reviews could be expaninclude the following. 

	 As part of the annual review, records mana

their liaisons should also be reviewing recofor their usefulness and relevance. 

	 In addition, senior management and operat

be queried on what information is needed.
 

	 Senior mangers can provide a broader perspectiv

they would like to see created and kept. 

	 Operational staff are a valuable source for identify

business practices and what information is needeshould be shared. 
Knowledge Sharin

Is institutional knowledge 

shared within FCA

	 Does the Agency make the best us

capital intellect (e.g. best practices, learned)? 

	 Does the Agency stimulate knowled
Knowledge Sharin

The Agency needs to reinforce the impsharing human capital intellect. 

	 In upcoming years the Agency may lose va

corporate knowledge due to retirements ancan have a crippling effect on the Agency’s 

	 The Agency is continually changing throug

shared services and the increasing use of technology. In this context, the Agency mupreserving information needed to support tprograms and services. 

	 The trend in government today is that emp

stay at the same agency as once was the important to capture employees’ know how what. 
Knowledge Sharin

A Knowledge Management Steward cAgency operations by: 

	 Preserving the expertise of departing em	 Helping the Agency gain understanding 

experiences. 

	 Improving the Agency’s ability to solve p

strategically. 

	 Encouraging innovation and new ideas. 
Conclusion
 

	 Policies, procedures and controls have been 

capturing information. However, policies an

need to be continually reexamined to develofor capturing information, particularly approaelectronic applications. 

	 A successful recordkeeping system should 

high quality content. The Agency must ensumaintained is relevant and useful. 

	 With the continuous changes to the Agency

environment, FCA needs to develop a strateinternal and external operating environment appropriate corporate knowledge or informacaptured, maintained and shared. 
Agreed Upon Acti

1.	 The Office of Management Services should determine wheth

Knowledge Management Steward. 

2.	 The Office of Management Services should perform an Agen

recordkeeping systems. The review should include, for exam

a.	 A listing of all Agency recordkeeping systems including 

personal workspaces. 

b.	 Identification of essential records that must be maintaine

 Legal and governmental requirements
  Interviews with Agency staff.
 

c.	 Determination on whether any systems are duplicative a

systems could be combined. 

d.	 Identification of information with restricted access that se.	 Recommendations for systems that could be replaced o

system (e.g. paper-based filing systems to electronic). 

f.	 Strategies for capturing information that use electronic a

on-line services). 

3.	 The Office of Management Services should explore strategie

sharing. 

4.	 The Office of Management Services should strengthen contro

certification process.