The Peace Corps

Performance and

Accountability Report

Fiscal Year 2011
Paul D. Coverdell Peace Corps Headquarters

1111 20th Street NW, Washington, DC 20526

A PDF version of this report and a Section 508 Compliant version are available at www.peacecorps.gov/docs. Send PAR comments or 

questions to www.peacecorps.gov/contactus or to the Peace Corps mailing address above.

Peace Corps

Performance and

Accountability Report

Fiscal Year 2011

November 15, 2011
Where Peace Corps Volunteers Serve

Asia

CambodiaChinaIndonesiaPhilippinesThailand

Pacific Islands

Federated States of Micronesia, and PalauFijiSamoaTonga

Vanuatu

North Africa andThe Middle East

JordanMorocco

Latin America

BelizeBoliviaColombiaCosta RicaEcuadorEl SalvadorGuatemalaGuyanaHondurasNicaraguaMexicoPanamaParaguayPeruSuriname

The Caribbean

Dominican RepublicEastern Caribbean:Jamaica

Antigua/Barbuda

 Dominica Grenada/Carriacou St. Kitts/Nevis St. Lucia St. Vincent/Grenadines

Africa

BeninBotswanaBurkina FasoCameroonCape VerdeEthiopiaGhanaGuinea KenyaLesothoLiberiaMadagascarMalawiMali

Eastern Europe/Central Asia

AlbaniaArmeniaAzerbaijanBulgariaGeorgiaKazakhstanKyrgyz RepublicMacedoniaMoldovaMongoliaRomaniaTurkmenistanUkraine

MozambiqueNamibiaNigerRwandaSenegalSierra LeoneSouth AfricaSwazilandTanzaniaThe GambiaTogoUgandaZambia
Contents

The Director of the Peace Corps iii

Management’s Discussion and Analysis 1

Overview of the Peace Corps at 50 2

Mission and Organizational Structure 3

Work of the Volunteers 5

Agency Performance Goals and Results 13

Looking Forward 18

Analysis of Financial Statements 22

Analysis of Systems, Controls, and Legal Compliance 24 

 Management Assurances 25

Performance Section 27

Agency Performance 28

Annual Performance Results 30

Program Evaluation 68

Financial Section 79

Message from the Chief Financial Officer 80

Financial Statements 82

Notes to the Financial Statements 86

Inspector General’s Audit Transmittal Letter 97

Auditor’s Report 99

Other Accompanying Information 111

Inspector General’s Statement on the Peace Corps’ 112

Management and Performance Challenges

Agency Response to Inspector General’s Statement on the Peace Corps’ 118

Management and Performance Challenges

Summary of Financial Statement Audit and Management Assurances Tables 122

Improper Payments Information Act 123

Appendices 125

Appendix 1 – Summary of Audit Significant Deficiencies 126

Appendix 2 – Glossary of Acronyms 128
A Peace Corps Volunteer helps build bottle schools in this 

Guatemalan community, comprised of people displaced 

during the Guatemalan Civil War. This school allows youth 

to continue their education beyond primary school. The 

school is constructed of 13,000 recycled plastic bottles, 

helping to solve a growing problem with trash in the area 

while increasing educational opportunities. 
iii

In our 50th anniversary year of service, I am pleased to present the Peace Corps’ Performance and Accountability 

Report for fiscal year (FY) 2011. This report shows how we managed our resources, highlights the major accomplishments of the Volunteers and staff serving in the Peace Corps around the world, and outlines our plans to 

address future challenges. The financial and performance results in this report allow the President, the members 

of Congress, and the American people to assess the effectiveness of the agency’s operations.

In 1960 then-Sen. John F. Kennedy challenged students at the University of Michigan to serve their country in the 

cause of peace by living and working in developing countries. Out of that inspiration, a new government agency was 

formed. In 1961, the Peace Corps was established with the simple but powerful mission to promote world peace 

and friendship. The three goals articulated at the outset continue to provide the foundation of this remarkable 

agency:

1. To help the people of interested countries in meeting their need for trained men and women.

2. To help promote a better understanding of Americans on the part of the peoples served.

3. To help promote a better understanding of other peoples on the part of Americans.

In accordance with the commitment to its core mission, the Peace Corps consistently evaluates and updates 

its operations to meet the changing needs of today’s world. The agency balances an adherence to tradition with 

strategic innovation in the 76 host countries where Volunteers serve. This year, the agency faced the challenge 

of continuing to provide excellent direct support services to the 9,095 Volunteers—a 40-year high level—while 

managing the almost $26 million cut in appropriated budget at mid-year. We made difficult decisions that included 

staff reductions, reducing program size, curtailing or postponing planned systems initiatives, and delaying the 

entrance dates for some applicants.

Furthermore, this year the agency did not enter or re-enter additional countries but focused instead on the unique 

and continuing needs of our existing host country partners. The Comprehensive Agency Assessment submitted 

to Congress in June 2010 articulates our vision: to make the Peace Corps a leader, in partnership with others, in 

the global effort to further human progress and foster understanding and respect among people. In carrying out 

that vision, we are making strategic decisions about the countries in which we operate and focusing on selected 

projects in those countries where we serve. The agency’s Country Portfolio Review informed our decisions to end 

our programs in five countries by the end of FY 2013, and we are in the process of ending our programs in two other 

countries. Additionally, we are developing more standardized, higher quality training for Volunteers working in 

high impact projects.

We continue our unwavering commitment to the health and safety of Peace Corps Volunteers as the single most 

important priority of the agency. To that end, this year we implemented numerous reforms to provide more effective and compassionate support to our Volunteers, including the development and rollout of enhanced training 

for staff and Volunteers, establishment of an external panel of national experts on sexual assault, and the hiring 

of a nationally-recognized Victim Advocate. We will continue to work with our communities and with Congress 

as we implement these reforms. I am pleased to note that our Annual Performance Plan for FY 2012 includes new 

performance indicators relating to improving the safety, security, and support of Volunteers.

THE DIRECTOR OF THE PEACE CORPS

WASHINGTON, D.C.
iv

As an agency, we remain committed to improving performance to better meet the needs of host countries and fully 

support the well-being of Volunteers. In the third year of implementing the FY 2009-FY 2014 Strategic Plan, the 

Peace Corps’ three core goals remain the focus of the agency’s strategic planning efforts. Overall, the Peace Corps 

achieved success in 72 percent of its measurable indicators, a significant increase over last year. Moving forward, 

the agency will utilize the first FY 2012 Strategic Plan Quarterly Performance Review to identify performance 

improvement priorities and approaches. 

For the fifth consecutive year, independent external auditors rendered an unqualified (clean) audit opinion on 

the Peace Corps’ financial statements, with no material weaknesses identified by the auditors or through internal 

managerial reviews and no instances of noncompliance with laws and regulations identified. The agency again 

received the Association of Government Accountants’ Certificate of Excellence in Accountability Reporting for its 

FY 2010 Performance and Accountability Report. Financial and performance data presented in this report are 

complete and reliable due to the vigilant efforts of dedicated financial management and performance staff members throughout the agency.

Our system of internal control and the financial systems meet the Federal Managers’ Financial Integrity 

Act (FMFIA) objectives and the framework in the Office of Management and Budget (OMB) Circular A-123, 

Management’s Responsibility for Internal Control, as shown in the management assurance statement that follows 

in Management’s Discussion and Analysis. 

The Message from the Chief Financial Officer in the Financial Section shows our financial management improvements implemented during this year and those planned for future years. 

Our Volunteers are America’s best and most cost-effective grassroots development workers, building relationships 

from the ground up as partners with communities around the globe. As a Volunteer in the Dominican Republic 

from 1967 to 1970, I stand united with today’s Volunteers in supporting their outstanding day-to-day contributions to improve lives in the local communities where they live and work. 

Sincerely,

Aaron S. Williams, Director

November 15, 2011
Management’s Discussion and Analysis

Sharing the importance of providing safe water sources 

for family gardens, a Natural Resource Management 

Volunteer works with her host family in Niger.
2 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

Since 1961, over 200,000 Americans have served as 

Peace Corps Volunteers living and working side-byside with local community members in 139 countries 

around the world—an extraordinary legacy of service. 

At the end of the agency’s 50th year, 9,095 individuals, ranging in age from 20 to 84 and representing all 

50 states, were working as Peace Corps Volunteers in 

76 countries. Today, there are more Americans serving as Peace Corps Volunteers than at any point in the 

last 40 years.

Passing the torch from generation to generation, each 

new group of Volunteers advances Peace Corps’ deep 

commitment to international Volunteer service. 

Many of the challenges that existed half a century 

ago are still with us today—challenges such as hunger, poverty and illiteracy. Volunteers are constantly 

improving the way these needs are addressed, in 

addition to more contemporary problems such as climate change and HIV/AIDS. 

As grassroots ambassadors for the United States, 

Peace Corps Volunteers represent the best America 

has to offer. They help dispel misperceptions about 

the United States and counter anti-American sentiment in areas of the world that might otherwise 

have little direct exposure to Americans. They 

reflect the diversity of America and represent its 

values, generosity, and hope. Based on the results 

achieved, the Peace Corps is widely recognized 

as a highly efficient and cost-effective mechanism 

addressing host country needs and deepening 

cross-cultural understanding between Americans 

and those they serve. 

Volunteers join the Peace Corps because they want 

to help others, but they often return convinced 

they received more from the experience than they 

gave. For the rest of their lives, they demonstrate a 

deep commitment to helping their fellow citizens 

understand people in other countries. This overseas 

experience leads many returned Volunteers to continue to serve—at the international, national, and 

community levels. Their actions reflect Peace Corps’ 

belief that understanding and respect are indispensable ingredients of peace.

Peace Corps is the largest service model of its kind 

in the world, transcending national boundaries, 

languages, religions, and classrooms. Despite a welldeserved reputation for excellence, the agency is 

constantly searching for new ways in which to balance the pursuit of its long-standing mission with the 

spirit of innovation. 

The agency begins the next 50 years dedicated to 

maintaining the ideals of its founders while addressing the dreams of future generations. Secretary of 

State Hillary Clinton expressed the nation’s gratitude 

when she said, “On this 50th anniversary of the Peace 

Corps, the United States honors the over 200,000 

Americans who have answered the call to serve and 

thanks the 139 countries that have welcomed Peace 

Corps Volunteers as family and friends. Let us take 

this opportunity to remember President Kennedy’s 

and Sargent Shriver’s vision and rededicate ourselves 

to a world of deeper understanding, where every 

man, woman, and child has the opportunity to live up 

to his or her potential.” 

Overview of the Peace Corps at 50

0

President Obama and British Prime Minister David Cameron announced a formal partnership 

in May 2011, between the Peace Corps and the Voluntary Service Overseas to combine forces 

to capitalize on their joint work and increase their impact in reducing poverty, improving 

organizational effectiveness, and sharing best practices in training, systems, and innovation. 

The partnerships will target investment where it can do the most good and deliver the best 

results for the poorest people by developing volunteer programs that are more effective in 

engaging poor communities in shaping their own future.
The Peace Corps :: performance and accountability report :: fiscal year 2011 3

Management’s Discussion and Analysis

Mission and Organizational Structure

0

Mission Statement 

Promoting world peace and friendship—the mission 

of the Peace Corps—is as important today as it was 

50 years ago. That mission continues to be defined by 

Peace Corps’ three core goals, expressed in the Congressional Act that created the agency in 1961: 

1. To help the people of interested countries in meeting their need for trained men and women.

2. To help promote a better understanding of Americans on the part of the peoples served.

3. To help promote a better understanding of other 

peoples on the part of Americans.

Peace Corps’ unique approach to development combines sustainable community development with the 

expansion of cross-cultural understanding between 

the American people and the countries and communities where Volunteers serve. The medium- and 

long-term impact of their work contributes to more 

stable communities and builds the number of sustainable partnerships between the United States and 

other countries. Through these partnerships, Volunteers help to advance collaboration on a range of 

critical global issues. 

Since the first Volunteers heeded President 

Kennedy’s call to service, Peace Corps has been 

sending talented Americans throughout the world 

to fulfill Peace Corps’ Goal One. In response 

to requests for technical assistance from their 

host government, Volunteers carry out work that 

responds to the needs of host country governments 

and the local communities in which they serve. 

Volunteers serve only in those countries where they 

have been invited by the host government. At the end 

of FY 2011, Volunteers were serving in 76 countries in 

Africa, Asia, the Caribbean, Eastern Europe, Central 

Asia, Latin America, North Africa, the Middle East, 

and the Pacific Islands. Requests for partnerships 

with new countries and for additional Volunteers 

from current partner countries far exceed the agency’s capacity to respond within its current budget.

The Peace Corps’ people-to-people development 

model is unique. Volunteers collaborate with local 

communities, strategic partners, and other U.S. 

government agencies to address host country development goals at both the individual and community 

levels. Volunteers live and work in underserved communities, speaking the local languages and learning 

the culture and customs of the people they serve. 

They support the development efforts of other U.S. 

government agencies at the community level. 

Over their 27 months of service, Volunteers pursue 

the dual objectives of sustainable development and 

citizen diplomacy. The friendships they establish lead 

to better cross-cultural understanding between the 

Volunteers and their host families and local partners, 

advancing attainment of Peace Corps’ Goal Two.

When Volunteers return home, their work continues. 

By sharing the knowledge gained from their experiences while serving in the developing nations of 

the world, returned Volunteers contribute to Peace 

Corps’ Goal Three. At the same time, they help to 

lay a crucial foundation to the development of peace 

and friendship today and for generations to come. 

As President Obama stated in his Presidential Proclamation—50th Anniversary of the Peace Corps, 

“Returned Volunteers, enriched by their experiences 

overseas, bring a deeper understanding of other cultures and traditions back to their home communities 

in the United States.”

To learn more about the Peace Corps, please 

visit our website: www.peacecorps.gov.
4 Th

e Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

* In their functions as Chief Financial Ocer, Chief Information Ocer, American Diversity Program Manager,  and the Chief of Acquisitions and Contact Management, the incumbents report directly to the Director. 

Deputy Director

Office of Volunteer 

Recruitment and 

Selection

Office of Public 

Engagement

Office of 

Communications

Office of 

Volunteer Support

Office of 

Safety and Security

Office of Private 

Offi

Sector Initiatives

ce of Global 

Operations

ce of Offi Acquisitions 

and Contract 

Management*

Executive 

Secretariat

Chief Compliance 

Officer

Office of the Chief 

Financial Officer*

Office of 

Intergovernmental 

Affairs and Partnerships

Europe, 

Mediterranean, and 

Asia Region

Africa Region

Overseas 

Programming and 

Training Support

Peace Corps 

Response

Inter-America and 

the Pacific Region

Chief of Staff/

Operations

Office of the 

Chief Information 

Officer*

Office of 

Management

American Diversity 

Program*

Overseas Posts Overseas Posts Overseas Posts

Office of Strategic 

Information, Research 

and Planning

Office of 

Global Health 

and HIV

Director

Senior Advisor

White House Liaison

Office of the General 

Counsel Office of Innovation

Office of 

Congressional 

Relations

Office of Inspector 

General
The Peace Corps :: performance and accountability report :: fiscal year 2011 5

Management’s Discussion and Analysis

Work of the Volunteers

Overview 

Volunteer activities are the primary way the Peace 

Corps delivers assistance to host countries and the 

central method for meeting the agency’s three core 

goals. The number of Volunteers, trainees, and Peace 

Corps Response Volunteers serving in the Peace 

Corps as of September 30, 2011, was 9,095. This 

number included 635 Volunteers funded by the President’s Emergency Plan for AIDS Relief (PEPFAR). 

Changes in the number of Volunteers over the last 

seven years are related to the available appropriated 

funds and agency priorities. 

The Peace Corps’ Approach to Development 

The main focus of Volunteer activities is to build 

individual capacities so community members (students, farmers, clients served by a nongovernmental 

organization (NGO) or others) are empowered to 

improve their own quality of life. 

Volunteers help local stakeholders learn to identify and prioritize what they would like to change. 

Volunteers combine their existing knowledge and 

experience with the new skills they learn through 

Peace Corps in order to achieve that change. As a 

result of this approach, development is not just about 

creating gardens, but organizing and working with 

people to establish and maintain their own gardens. 

To be effective and for their work to be sustained 

after they leave, Volunteers design capacity-building 

activities at several different but integrated levels: 

individuals, organizations, and communities.

Volunteer Sectors

The Volunteers’ work focuses on projects in six 

sectors:

•	 Agriculture

•	 Business Development

•	 Education

•	 Environment

•	 Health and HIV/AIDS

•	 Youth Development

Agriculture

Agriculture Volunteers are 

involved in addressing two critical global issues: food security 

and climate change. Their projects focus on improving the long-term productivity of 

0

0

2,000

4,000

6,000

8,000

10,000

7,810 7,749 8,079

7,876

7,671

8,655

8,655

9,095

2005 2006 2007 2008 2009 2010 Fiscal Year

Volunteers

2011

Youth 

Development

5%

Environment

12%

Other

Agriculture 4%

4%

Education

40%

Health and 

HIV/AIDS

23%

Business 

Development

12%

Number of Volunteers

Volunteer Sectors
6 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

farmers’ fields by promoting environmentally-sustainable and organic farming. Many of the techniques 

promoted by Volunteers also help communities adapt 

to a changing climate. Agriculture Volunteers often 

work with farmers’ groups, nongovernmental organizations, and community-based organizations, such 

as women’s associations or youth clubs, as their primary partners. 

The sustainable production practices promoted by 

Volunteers help communities achieve food security. 

Agriculture projects address food security issues 

by promoting crop diversification and encouraging 

production and proper utilization of more nutritious 

foods. Volunteers work with farmers to improve soil 

and water management, integrate trees on farms, 

and use natural inputs to control pests. Volunteers 

work side-by-side with men and women on their field 

crops, testing new varieties and promoting family 

and school vegetable gardens. Using a value-chain 

approach—an analysis of the opportunities and key 

stakeholders involved in a particular industry from 

inputs to the point of sale to the customer—Volunteers help communities market and improve storage 

of their agricultural products, as well as develop new 

value-added products. In FY 2011, 372 Volunteers 

worked on agricultural projects. 

Notable Agricultural Activities:

Selling agricultural products: Volunteers in Nicaragua helped implement three environmentally 

green markets in three local jurisdictions. Over 25 

producers are participating in these markets every 

two weeks, obtaining better prices for their produce, 

and opening new market opportunities by being 

more visible to more clients and buyers.

A Volunteer Vignette: Changing Lives through 

Information

“About four years ago, the Panamanian governmental agricultural agency (MIDA) provided 18 farmers 

in my community with a set of tools and rice seeds to 

build and implement rice tanks,” reported an agricultural Volunteer. [A rice tank is an integrated fish and 

rice farming system that provides a higher-yielding 

and more environmentally friendly alternative to 

slash and burn hillside rice cultivation.] “But... there 

was no follow-up training on how to plant, manage, or 

harvest in rice tanks. The farmers planted and managed the rice tanks as they normally would [plant] 

rice on the hillsides. As a result, many abandoned the 

tanks altogether after they did not produce higher 

yields over traditional cultivation. 

After starting service in my community, we identified 

the need to teach people how to manage rice tanks for 

a sustainable yield, so I organized a two-day Farmer 

Field School with MIDA. Over the two-day training, 

the farmers built seed beds, made organic fertilizer, 

prepared the rice tank, transplanted the seedlings, 

and managed the water level in the rice tank. A few 

months have passed since the training, and the farmers who participated are now putting into practice 

the techniques they learned. They are realizing they 

can cultivate rice without clearing more land or using 

large amounts of chemical fertilizers or pesticides. ‘We 

simply had no idea how to work in the rice tanks,’ commented one farmer. ‘We were given tools and told to 

dig them, but nothing more.’ Now, with better information and renewed motivation, farmers are planting rice 

tanks that sat fallow for years and are reaping better 

results than ever before. Farmers using the rice tank 

method will benefit from a healthier and more sustainable way of life for their families and the environment.” 

Business Development

Volunteers in the business 

development sector train 

and advise entrepreneurs in 

business planning, marketing, financial management, product design and 

distribution, and customer service.  Activities to 

help people launch or expand a business range from 

teaching business and financial literacy to assisting microcredit programs, village savings and loan 

associations, and cooperatives in establishing or 

improving their operations. 
The Peace Corps :: performance and accountability report :: fiscal year 2011 7

Management’s Discussion and Analysis

Volunteers also help small businesses learn how to 

market their products by using websites and social 

media to advertise and by developing linkages to 

larger markets. These businesses include small-scale 

agribusiness (fruits, vegetables, and small livestock), 

ecotourism ventures,  and handicrafts.  Some of the 

activities focus on helping members of disadvantaged groups—orphans, at-risk youth, and victims 

of trafficking—learn new skills so they can enter the 

workforce. 

Volunteers may also work with entire communities to improve market linkages for local 

businesses, to start community-run businesses–

such as ecotourism initiatives–and to coordinate 

overall community economic development by creating partnerships among the government, NGOs, 

and the business sector. 

Volunteers’ work also focuses on strengthening 

organizations to increase their capacity to: improve 

governance (develop mission statements, strategic 

plans, and by-laws); improve project management; 

raise public awareness; raise funds; increase outreach; and improve client services. 

Community projects engage citizens and municipal 

officials in new ways, empowering small communities to mobilize to address issues at local levels with 

their own resources. Volunteers are often catalysts for change and define their particular roles in 

response to their host communities. Community 

development projects may encompass any combination of disciplines depending on local priorities and 

resources. 

The agency continues to field a significant number of business volunteers. In FY 2011, 1,140 

Volunteers worked in business development. 

Volunteers who work in this sector have graduate or undergraduate degrees and experience in 

government, business, non-profit organizations, 

organizational development, computer sciences 

and liberal arts. 

Notable Business Development Activities:

National Entrepreneurship Curriculum: The 

Nicaraguan Ministry of Education integrated Peace 

Corps’ La Empresa Creativa (The Creative Business) 

business course into the national high school curriculum. The guide that Volunteers developed was 

considered more hands-on and practical than any 

other available materials so it was officially added 

to the 10th and 11th grade technical and vocational 

classes at all public and private schools. Students 

learn how to start their own businesses, generate 

income, and create employment. Peace Corps is 

working on implementing training-of-trainers sessions for teachers and is developing a certification for 

teachers who have been trained by Volunteers.

Improved Access to Markets: Morocco Volunteers 

organized craft fairs in the major cities. Participating 

artisans targeted a new customer base and attended 

workshops on product quality, marketing, cost 

accounting for accurate pricing, grant writing, leadership, and succession planning. Each artisan received 

an individual product quality consultation on the 

requirements for export. The fairs reached potential 

buyers from the expatriate, host country, and retail 

communities who wanted to support traditional 

handicrafts by buying directly from the artisans 

and supporting fair wages to artisans. The craft fairs 

helped artisans build professional networks, product 

development, market studies and product testing, and 

improved communication with customers. 

Education 

Education continues to be the 

largest technical area in which 

Volunteers work, with 40 percent of the Volunteers serving 

in educational settings. Education projects cut across 

all levels, from pre-school through primary and secondary schools, to universities and teacher training 

colleges. Often Volunteers serving in other sectors 

also teach classes in English, tutor students in a vari-
8 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

ety of subjects or otherwise participate in informal 

teaching or training. 

Volunteers work with students in classrooms 

and/or in after-school activities; directly teach 

students or work with local teachers to co-teach 

or team teach; and provide workshops for teachers that focus on participatory and experiential 

learning, classroom management, and resource 

development. They promote strong Parent-Teachers’ Associations and community involvement in 

education. The main goal remains the same: to 

better prepare students for their active participation in a globalized world.

In FY 2011, 3,654 Volunteers served in 54 education projects in posts around the world. Volunteers 

serving in the education sector have degrees and 

experience in primary education, teacher training, 

secondary education, special education, math, science, and English.

English teachers have always been in high demand 

from host country partners, as countless studies 

have shown the impact of having a native speaker 

of English in the classroom in reference to English 

language acquisition. Often the lessons incorporate 

contemporary content relevant to the development 

challenges facing the communities in which they 

live. In Africa, for example, Volunteers integrate 

health and HIV/AIDS prevention strategies into 

their lessons.

In FY 2011, the agency developed a new Teaching 

English as a Foreign Language (TEFL) core curriculum. The curriculum is a standardized training 

program to help Volunteers with little or no language 

teaching experience become effective English language teachers. The core curriculum provides a 

practicum with opportunities for practice teaching 

and peer observation. The TEFL curriculum was 

pilot-tested in four workshops around the world, 

receiving positive reactions and useful suggestions to 

make the curriculum even stronger. 

Notable Education Activities:

Belize established a partnership with the Toledo 

Teachers for a Better Belize. This partnership works 

with under-resourced and low-performing rural 

schools. Each Volunteer works as a teacher trainer 

for several days each week in his/her village school. 

Volunteers support school-wide action plans for 

research-based literacy instruction, using team 

teaching to train teachers and develop outreach 

activities with community members to promote early 

childhood learning and school readiness programs.

Team Teaching: Several posts reported incremental success using team teaching strategies 

and approaches. The Federated States of Micronesia received positive feedback from principals 

and counterparts and saw requests for Volunteers 

increase, even with the growing presence of competing organizations such as World Teach and the Japan 

International Cooperation Agency. Moldova noted 

that Volunteers spent the majority of their classroom 

hours team-teaching with Moldovan partners, sharing duties for planning, conducting, and evaluating 

the learning activities for the same group of learners. 

Volunteer Vignette: Educating and Empowering 

Girls in Burkina Faso 

“My friend Zallé and I started the Association for 

the Promotion of Girls and Women with a simple 

conversation,” said one Volunteer. “We had had 

this conversation many times during my first three 

months at site, but this time it was different. We were 

at a restaurant discussing the differences in gender 

roles and social issues that affect women in the United 

States and in Burkina Faso. On the subject of early 

teenage pregnancy, Zallé repeated his argument that 

it was the girls’ fault, resulting from wearing provocative clothes. At the same time, he began listening to 

my perspective. ’Doesn’t the problem also fall, at least 

somewhat, on the shoulders of the men involved?’ I 

asked. The conversation progressed to a discussion of 

how low self-esteem and lack of encouragement from 
The Peace Corps :: performance and accountability report :: fiscal year 2011 9

Management’s Discussion and Analysis

family and society at large can result in girls having 

trouble succeeding in high school. When I explained 

that girls and women in America were in practically 

the same boat only decades ago, his surprise turned 

into a call for action. He began to see these social 

problems and sexist attitudes as something people 

could change rather than an unfortunate and static 

reality. 

The end of the conversation echoed in my head for 

days: ’More people should know about these things.’ 

he said. The idea proceeded, as most things do here, 

little by little. We settled on developing a small, 

diverse group of men, women, boys and girls to plan 

different activities to help girls and women in our 

community. We called ourselves the Association for 

the Promotion of Girls and Women. Our mix of ages 

and sexes gave us different perspectives and also 

proved that it is everyone’s responsibility to work on 

these social problems, not just the girls and women 

themselves. We met regularly and hosted several 

events. We taught adolescent girls about reproductive anatomy and puberty, held a program for nearly 

two hundred adolescent girls and boys on contraception, and organized a four-day Healthy Futures Girls’ 

Camp.

The initiatives taken by this motivated group were 

inspiring but what always struck me the most was 

that at these meetings, I often wasn’t the one proposing these ideas or encouraging the members to 

pursue them. All that was needed was to get these 

people together and say ’Hey! How about we start 

doing things to try and help girls and women?’ and off 

they went.”

Environment 

Volunteers who work on 

environmental activities are 

leaders, in collaboration with 

their host country partners, in 

grassroots efforts to protect the environment. Their 

work involves teaching others to produce and cultivate trees, improve soils, and protect fields from 

erosion. Environmental education within schools is 

frequently part of their work. Volunteers train teachers to integrate more interactive teaching methods 

that focus on the environment into their curriculum. 

They also collaborate with schools and other organizations to promote environmental education in 

other ways, such as through clubs, youth camps, and 

awareness campaigns. Increasingly, Volunteers help 

communities manage solid waste. Volunteers help 

develop income-generation activities such as ecotourism, products made from leaves of the shea tree, 

and crafts that create incentives for conservation 

of natural resources. In FY 2011, 1,098 Volunteers 

worked in environment projects.

Notable Environment Activities:

Conservation: The impact of the Volunteers in Fiji 

working in marine conservation is noteworthy. Volunteers successfully implemented and supported 

marine-protected areas with their community partners. Nearby villages saw an increase in fish and 

other marine life along their shoreline for the first 

time in 10 years.

Environmental Action: Volunteers’ work has had 

a national impact. The Green Brigades (Brigadas 

Verdes) in the Dominican Republic were launched 

as environmental youth groups by Volunteers. They 

have since evolved into a national movement. The 

groups joined forces with a national youth leadership and service organization, Sirve Quisqeya (Serve 

Quisqueya), and now serve as the organization’s environmental arm. The Brigadas help youth develop 

leadership and life skills while serving their community by protecting the environment. There are 

currently 125 groups throughout the country.

Recycling and livelihoods: In the Philippines, 

Mali, and a number of other countries, Volunteers 

have helped youth and women’s groups turn plastic 

bags into purses. They collect and wash discarded 

plastic bags and crochet them into colorful handbags 
10 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

and change purses. The impact on the women is significant, as they have gained financial independence 

by turning trash into fashion. 

Health and HIV/AIDS

Health Volunteers work with 

local, regional, and national 

partners to improve both 

health care systems and individual health in primarily rural and periurban 

communities where conditions tend to be worse. 

The agency’s health projects target the specific health 

risks and needs of the various regions the agency 

serves. Africa health projects focus on malaria 

and HIV/AIDS; Inter-America and Pacific projects focus on water, sanitation and hygiene; and the 

Inter-America and Pacific region and the European, 

Mediterranean and Asia region focus on non-communicable diseases. Additionally, Volunteers address 

a common set of health issues, including HIV/AIDS, 

hygiene, maternal-child health, and healthy diets. In 

all of these activities, Volunteers provide assistance 

with problem-solving, introduce innovation and 

technology, and leverage appropriate resources to 

address health needs.

Health education benefits youth across all regions, 

both in and out of school. Peace Corps’ core 

approaches include increasing knowledge about 

common diseases and health issues, promoting 

behavior change, and capacity-building among community members, community health workers, and 

grassroots organizations to prevent and mitigate the 

major causes of morbidity and mortality. 

Volunteers work on HIV/AIDS prevention and care 

often as part of a comprehensive community health 

project. While the work can be their primary assignment, many work on HIV/AIDS projects as secondary 

projects. Life skills training continues to be at the 

center of Volunteers’ HIV/AIDS prevention work, 

particularly when targeting youth. Increasingly, 

Volunteers are assigned to assist HIV/AIDS-related 

nongovernmental organizations in increasing their 

technical, managerial, and administrative capacities. 

The Peace Corps is collaborating with the U.S. 

Department of State’s Office of the Global AIDS 

Coordinator to support the U.S. government’s commitment to worldwide HIV/AIDS care, prevention, 

and treatment through the President’s Emergency 

Plan for AIDS Relief (PEPFAR). 

In fiscal year 2011, 2,054 health Volunteers served in 

46 countries working in 48 health projects.

Notable Health Activities:

Guinea Worm Eradication: In January 2011, the 

government of Ghana and the Center for Disease 

Control announced that after “seven consecutive 

months of zero cases reported since May 2010, and 14 

months after reporting its last known uncontained 

case in October 2009, Ghana has finally conquered 

Guinea worm disease.” As announced on the Carter 

Center’s website, “The U.S. Peace Corps assisted the 

country’s Guinea Worm Eradication Program by providing health education and social mobilization at the 

village level.” 

Malaria Control: In Senegal, due to the efforts of 

Volunteers and their partners, each community 

member in an entire district in Senegal, for the first 

time, received a bed net (universal coverage) and 

benefited from behavior change activities. The Peace 

Corps has been playing an instrumental role in a 

village-by-village follow-up campaign to ensure continued success. As a result of the bed-net distribution 

campaign initiated by Peace Corps, the government 

of Senegal and the President’s Malaria Initiative 

adopted the Peace Corps distribution approach to 

support universal coverage efforts in the four regions 

of Senegal with the highest levels of malaria.

Infant and Young Child Nutrition: Since 2002, 

Volunteers in Africa have been implementing the 

Positive Deviance/Hearth Nutrition Model, aimed 

at addressing malnutrition among children and 
The Peace Corps :: performance and accountability report :: fiscal year 2011 11

Management’s Discussion and Analysis

changing infant and young child nutritional practices. Nutritional rehabilitation results collected by 

the Peace Corps in Mali, Burkina Faso, and Guinea

reveal that on average, 42 percent of children gained 

at least 200 grams during the 12-day Hearth Nutrition intervention period. One month from the initial 

start date, 66 percent of children had gained at least 

200 grams, with the average weight gain being 448 

grams. This increase showed that care providers continued to use learned behaviors well after the end the 

health activity.

Youth Development

Youth development is a critical 

component of the Peace Corps’ 

work. Recent figures estimate 

that 68 percent, or roughly 

two-thirds, of all the people with whom Volunteers 

work are young men and women under the age of 25. 

Volunteers work with youth in all sectors, but youth 

development is unique in the Peace Corps as it is both 

a project sector area—designed to support the capacities of young people—and an agency initiative that 

promotes an asset-based approach that can be used 

to strengthen the overall impact of the Volunteers’ 

work in a community. 

The agency’s model for working with young people 

emphasizes valuing youth as resources to be developed, rather than as problems to be solved; including 

youth in all aspects of an activity; and building on 

existing capacities. 

In FY 2011, 444 Volunteers worked in the youth 

development sector in schools, communities, camps, 

and clubs. Volunteers work with youth in challenging 

circumstances, including those living in institutions, 

orphaned and vulnerable due to HIV/AIDS, and/or 

out-of-school young people. 

According to the FY 2011 Annual Volunteer Survey, 

10 percent of all current Volunteers indicated that 

working with youth is one of the primary activities of 

their work assignment.

Notable Youth Development Activities: 

Improved Civic Awareness and Participation:

In Moldova, Volunteers worked with an NGO on 

its civic education project—The Village. The project 

develops children’s understanding of democracy 

and civil society through a practical and interactive 

approach. Through the project, youth learn skills to 

identify and address community needs. As a result of 

implementing this project, the local NGO expanded 

its vision from reaching more than 10 kids to expanding nationwide. It has trained 25 Volunteers and more 

than 20 community facilitators. The organization’s 

next project is to lobby the Ministry of Education to 

introduce the program into the national civic education curriculum. A website has also been set up where 

participants can share information and evaluate the 

program’s impact. 

In Honduras, the Municipal Development project has been the catalyst for the Federation of 

Organizations for the Development of Honduras, 

the Universidad Pedagogical Nacional (Pedagogical University of Honduras) and the Center for Civic 

Education to sign an agreement to integrate Project 

Citizen into their curricula. Peace Corps is in the process of ensuring that civic education is incorporated 

into the national curriculum. Paraguay has noted an 

increase in teachers’ knowledge and use of participatory methods for teaching civic education, and the 

formation of local youth leaders. 

Civic Engagement in Tonga was supported by Volunteers through the development of an NGO, the 

Tonga National Youth Congress. The organization 

promotes national youth service by Tongans. This 

culminated in the Tonga National Youth Congress 

being the only NGO to be active, staffed, and funded 

in all island groups of the Kingdom.

Volunteer Vignette: Bulgaria’s “Circle of Friends” 

Builds a Spirit of Volunteerism 

“I work in an orphanage with children and youth 

who have disabilities. Frequently, children with 
12 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

disabilities are extremely isolated and do not have 

many opportunities to develop social relationships. I 

wanted to address these issues to help improve their 

quality of life, so I designed a 10-week summer social 

integration project with two other Peace Corps Volunteers and my host organization.

We called the project Circle of Friends and 

recruited typical teenagers from a local high 

school to become ’buddies’ with the children in 

the orphanage. We had several pre-meetings with 

the teenagers to prepare them for what they would 

experience once we started going to the orphanage. 

We trained the teenagers how to be empathetic and 

to help the children complete activities instead of 

doing the activities for them. 

Throughout the project, the children began to look 

forward to Wednesday afternoons and their faces 

lit up in recognition when their buddies arrived. The 

children were given the opportunity to be in a different environment, to be with different people, and 

to be in a happy social environment. They smiled, 

interacted, and created beautiful artwork that now 

decorates the rooms and halls of the orphanage. They 

were given the chance just to be kids, to make friends, 

and to experience social relationships they might not 

otherwise have been able to experience.

The project has also made an impact on the teenage 

volunteers. By the end of the summer, the teenager 

’buddies‘ started coming to the orphanage to be with 

the children several days a week, not just on project 

days. The summer is over, but every Wednesday, 

teenagers still come to the orphanage to do art projects with the kids. They have taken over the project 

and lead the art sessions each week. I can see how 

proud they are of themselves and how much they 

enjoy helping the children. I know Circle of Friends 

will continue throughout the year.” 

In the Peace Corps’ recent Legacy video, 50 Years of 

the Peace Corps, Director Williams observed, “Peace 

Corps sends Volunteers into host communities to 

build the bridges of understanding that will foster 

friendship, that will foster peace and build the kind of 

future that we all strive for. We are not just witnesses 

to a country’s development, we are participants. 

We have taught English to thousands of children 

and teachers, we have worked alongside farmers to 

improve crops, we have taught computer technology 

powered by solar panels in rural villages, and we have 

delivered HIV/AIDS prevention messages to thousands of young adults. We are on the ground changing 

lives and changing history.”

An Education Volunteer in Lesotho 

discusses the benefits of solar panels 

with one of his students.
The Peace Corps :: performance and accountability report :: fiscal year 2011 13

Management’s Discussion and Analysis

Annually the agency measures its performance against the indicators and targets 

outlined in the Peace Corps’ Performance 

Plan for Fiscal Years 2009-2011 (available at 

http://www.peacecorps.gov/open/). Over the first 

three years of the Strategic Plan, the agency has 

steadily improved overall performance.

Year-to-Year Indicator Overview

FY 2009 FY 2010 FY 2011

Targets Met 23 of 36 24 of 36 26 of 36

Targets Met 

(Percentage)

64% 67% 72%

Strategic Goals and Agency Core Goals

The Peace Corps’ Strategic Plan identifies the five 

strategic goals the agency seeks to achieve between 

FY 2009 and 2014. The first three strategic plan 

goals align with the agency’s three core goals; strategic plan goals four and five address support for 

Volunteers and effective management practices.

Outcome Goals and Performance Goals

Each strategic goal is supported by outcome goals 

that define the results the agency expects to achieve 

in order to reach the long-term strategic goals. In 

turn, each outcome goal is supported by one or more 

performance goals, which define the concrete, measurable objectives the agency expects to achieve. 

These performance goals are in turn supported by 

specific performance indicators and targets.

Strategic Goal 1: Enhance the capacity of 

host country individuals, organizations, and 

communities to meet their skill needs

The agency assists host country individuals, organizations, and communities to meet their needs by 

providing trained Volunteers to build local capacity. 

Peace Corps Volunteers work with partners to teach 

skills that will allow them to continue to meet their 

own needs. Volunteers also support the development 

efforts of other U.S. government agencies, reaching 

well beyond their geographic scope.

Public Benefit: Volunteers employ a participatory 

approach to development, building partnerships on 

a daily basis with host country individuals and communities. Americans benefit from the good will that 

comes from long-term friendships which contribute 

to creating a more stable world.

Performance at a Glance

The agency met almost all of the performance targets 

for this strategic goal in FY 2011. The agency sent 

well-trained Volunteers who reported their work 

successfully transferred skills to their partners.

Facilitating sustainable development outcomes: 

The Peace Corps made significant progress in collaborating with host country partners through 

annual reporting and active participation in project 

plan development and review. Through the expertise 

provided by strategic partners, the agency improved 

the quality of training, ensuring Volunteers have the 

technical skills to meet the needs of the host country.

Focusing on highly-effective, targeted Volunteer 

projects: The agency sharpened its programming 

focus, per one of the priority recommendations of 

the Comprehensive Agency Assessment, by identifying the most highly successful projects around 

the world and preparing new training materials to 

prepare Volunteers for service. While the unique 

challenges of HIV/AIDS outreach shaded Volunteers’ perceptions of their effectiveness, feedback 

from host country nationals indicated Volunteers 

are indeed making a significant contribution in the 

fight against HIV/AIDS.

Agency Performance Goals and Results

0
14 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

Strategic Goal 2: Promote a better 

understanding of Americans on the part of 

host country individuals, organizations, and 

communities served by Volunteers

One of the core expectations for Volunteers is to 

“Recognize that you will be perceived, in your host 

country and community, as a representative of the 

people, cultures, values, and traditions of the United 

States of America.” 

Public Benefit: The women and men who serve as 

Volunteers represent some of the finest characteristics of the American people: generosity of spirit, 

a strong work ethic, a commitment to service, and a 

collaborative approach to problem solving. Through 

their interactions with Volunteers, host country 

individuals and communities gain a more complete 

understanding of the United States and become more 

willing to engage with and trust Americans.

Performance at a Glance

The agency failed to meet two of the three measured 

performance targets for this strategic goal. While 90 

percent of the Volunteers reported satisfaction with 

their cross-cultural training, the target of 93 percent was not reached. The Volunteers were unsure 

that their work helped promote a better understanding of Americans. The original indicator measuring 

host country nationals’ views of Americans is no 

longer being used. However, an alternative measure 

showed that 90 percent of host country nationals said 

their opinions of Americans were more positive after 

interacting with Volunteers.

Host Country Impact Studies: The studies 

provided evidence that host country nationals 

developed more realistic and well-rounded impressions of Americans from social as well as work 

interactions and their opinions became more positive as a result.

New cross-cultural training curriculum: The 

agency is developing standard cross-curriculum 

training for Volunteers that will help them better 

integrate into their communities. The curriculum is 

part of the Focus In/Train Up initiative and will be 

fully operational in FY 2012.

Strategic Goal 3: Foster outreach to Americans 

through agency programs that assist Volunteers 

and returned Peace Corps Volunteers to help 

promote a better understanding of other peoples 

on the part of Americans 

Volunteers not only serve as goodwill ambassadors 

overseas on behalf of the American people, they also 

bring their experiences back home to increase Americans’ awareness and knowledge of other cultures 

and global issues. 

In collaboration with the President’s Malaria 

Initiative (PMI), Peace Corps developed a campaign, “Stomp Out Malaria.” More than 3,000 

Volunteers in 17 high-incidence countries in 

Africa mobilized to engage in the fight to reduce 

the incidence of malaria by half.

Volunteers distributed insecticide-treated bed 

nets and boosted indoor residual spraying. 

They became involved in grassroots awareness campaigns on prevention and treatment, 

community-level planning and mobilization for 

universal bed net distribution, and, surveillance 

and data collection and analysis for monitoring 

and evaluation. The campaign takes full advantage of Peace Corps’ unique “delivery capacity” 

at the grassroots level. Volunteers and staff participated in a two-week “malaria boot camp” 

in Senegal, with training provided by experts 

from PMI, the Center for Disease Control, U.S. 

Agency for International Development, Malaria 

No More, Johns Hopkins, the University of 

South Florida, and other partner organizations.
The Peace Corps :: performance and accountability report :: fiscal year 2011 15

Management’s Discussion and Analysis

Public Benefit: Returned Volunteers are the domestic dividend of the Peace Corps. Volunteers who learn 

about another culture and then share that knowledge 

with Americans at home help other Americans gain 

cross-cultural insights. As a result, Americans may 

become more interested in and engaged with the 

global community.

Performance at a Glance

The agency met all of its performance targets.

50th Anniversary activities: Current and returned 

Volunteers participated in agency-initiated outreach 

activities in record numbers in FY 2011. The agency’s 50th anniversary activities provided unique 

opportunities for the Peace Corps community to 

engage with the American public.

New Third Goal strategies: The agency developed 

several new strategic approaches to reaching out 

to the American public. The new Engage. Expand. 

Enlighten. campaign encouraged returned Volunteers to share their Peace Corps experiences 

in elementary, secondary, and post-secondary 

classrooms in their communities and help recruit 

the next generation of Volunteers through local 

recruitment events. The strategy also included 

an online “Increase Peace” referral program 

(www.peacecorps.gov/increasepeace/) and an invitation to upload a story and/or photo to the Peace Corps 

Digital Library (http://collection.peacecorps.gov/). 

Strategic Goal 4: Provide Volunteers who 

represent the diversity of Americans to meet the 

evolving technical needs of host countries

This strategic goal contributes to Peace Corps’ 

core goals one and two by improving systems that 

manage the supply and demand of Volunteers, 

managing efficient and effective Volunteer recruitment processes, and increasing the recruitment of 

diverse individuals who meet the demand for specific skill sets. 

Public Benefit: When Volunteers are recruited 

who have the skills and experience requested by 

host countries, they are better positioned to work 

with host communities to improve local conditions 

and build capacity for communities to solve their 

own problems.

Performance at a Glance

The agency met half of its performance targets. The 

Peace Corps was able to provide Volunteers to posts 

that met their countries’ technical needs; however, 

the decrease in the number of Volunteers requested, 

due to mid-year budget cuts, caused high levels of 

inefficiency in agency operations. While the recruitment of mid-career to age 50 and older applicants 

was limited, the agency surpassed the target for 

attracting applicants from diverse ethnicities.

Volunteer Delivery System improvements: The 

development of new technologies to improve the efficiency of Volunteer recruitment and selection was 

advanced. The agency moved ahead with changes—

strategic, structural, and process—to recruit and 

retain talented and diverse applicants. These 

reforms, in response to the Comprehensive Agency 

Assessment, included: realigning regional offices; 

analyzing the diversity of the agency’s applicant pool 

and developing new initiatives to increase the numbers of ethnically diverse Volunteers; and improving 

the application process to provide applicants with 

more choice concerning their country of service. 

These changes will take effect in FY 2012.

Strategic Goal 5: Implement the Peace Corps 

mission in an effective and efficient manner 

through the provision of high quality Volunteer 

support with optimal health care, safety and 

security support, and effective management of 

resources

The effective management of Peace Corps’ domestic 

and overseas operations, including human and financial resources, is critical to carrying out the mission 
16 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

of the agency. Providing high quality support for the 

Volunteers ensures they can successfully meet their 

project objectives.

Public Benefit: Effective management practices 

ensure that the agency is utilizing the resources of 

the American taxpayers to achieve optimal performance. Providing high quality support for the 

Volunteers ensures they are safe and healthy during 

their service and can successfully meet their project 

objectives.

Performance at a Glance

In two of the goal areas, provision of health care and 

management effectiveness, the agency met its performance targets. Performance targets were not met for 

some safety and security indicators, and the agency 

has strengthened safety and security measures to 

better protect Volunteers.

Safety and Security reforms: The far-reaching 

reforms reflect the agency’s emphasis on a victimcentered approach to safety and security and incident 

response, which includes how post and headquarters 

staff members handle all crimes. The agency collaborated closely with the Department of Justice and the 

Department of Defense in the development of these 

reforms.

Strengthened management and operations: This 

fiscal year the agency implemented many of the operational reforms recommended by the Comprehensive 

Agency Assessment, including a country portfolio 

review process to better inform financial and Volunteer allocation decisions at each post. As a result, key 

agency stakeholders collaborated to make informed 

resource allocation decisions. Further, with the dissemination of a staff handbook to posts, all operating 

units are now covered by standardized personnel 

practices. 

An Education Volunteer in China 

shares a lesson with her students.
The Peace Corps :: performance and accountability report :: fiscal year 2011 17

Management’s Discussion and Analysis

FY 2011 Performance Summary

Performance 

Goal

Description Targets 

Met

Strategic Goal 1: Enhance the capacity of host country individuals, 

organizations, and communities to meet their skill needs

9 of 10

1.1.1 Ensure the effectiveness of in-country programs 3 of 3

1.2.1 Ensure the effectiveness of in-country training 3 of 3

1.3.1 Increase the effectiveness of skills transfer to host country individuals, 

organizations, and communities

3 of 4

Strategic Goal 2: Promote a better understanding of Americans on the part 

of host country individuals, organizations, and communities served by 

Volunteers

1 of 3

2.1.1 The work and life experiences of Volunteers in-country promote host country 

national learning about Americans

1 of 3

Strategic Goal 3: Foster outreach to Americans through agency programs 

that assist Volunteers and returned Peace Corps Volunteers to help promote 

a better understanding of other peoples on the part of Americans

5 of 5

3.1.1 Volunteers share their in-country experiences with family, friends, and the 

American public

3 of 3

3.1.2 Increase returned Peace Corps Volunteers’ cultural outreach to the American 

public through Peace Corps programs

2 of 2

Strategic Goal 4: Provide Volunteers who represent the diversity of 

Americans to meet the evolving technical needs of host countries

3 of 6

4.1.1 Recruit Volunteers who balance the needed manpower and technical needs 

at posts with the available applicant pool and its skills

2 of 2

4.1.2 Manage Volunteer recruitment functions in an effective and efficient manner 0 of 2

4.2.1 Recruitment and Volunteer placement efforts reflect the diversity of 

Americans

1 of 2

Strategic Goal 5: Implement the Peace Corps mission in an effective and 

efficient manner through the provision of high quality Volunteer support 

with optimal health care, safety and security support, and effective 

management of resources

8 of 12

5.1.1 Enhance the safety and security of Volunteers 1 of 4

5.1.2 Provide quality medical and mental health services to trainees and 

Volunteers

3 of 3

5.2.1 Provide effective and responsive financial management that accurately 

reflects domestic and overseas operations

1 of 2

5.2.2 Ensure the effective management of Peace Corps resources 2 of 2

5.2.3 Ensure the optimal performance of critical Peace Corps processes 1 of 1
18 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

The Peace Corps is dedicated to combining innovative 

approaches, a commitment to performance improvement, and the knowledge and skills gained through a 

five-decade record of achievement to ensure that its 

next 50 years are even better than the last. Priority 

safety and security reforms introduced for Volunteers 

in FY 2011 will be further expanded and institutionalized. The Comprehensive Agency Assessment (www.

peacecorps.gov/open) continues to inform the vision 

for improving Peace Corps operations and, alongside 

implementation of the agency’s Annual Performance 

Plan, will advance agency objectives in key areas. 

Volunteer Health, Safety, and Security

The safety and security of Peace Corps Volunteers will 

continue to be the agency’s highest priority. Numerous 

reforms were introduced in FY 2011 to better protect 

the health, safety, and security of Volunteers and provide compassionate support to Volunteers who are 

victims of crime. 

In FY 2012, the agency will build upon these improvements to further strengthen the Volunteer safety and 

security system. Partnerships with key organizations 

such as the Department of Defense, the Department of 

Justice, and the Rape, Abuse and Incest National Network will be deepened and expanded. A new safety and 

security survey for Volunteers will be designed and 

fielded in FY 2012 to gather additional data regarding 

unreported crimes and Volunteers’ satisfaction with 

safety and security measures. The information provided by Volunteers from this survey will be used in 

on-going efforts to ensure their safety.

The agency will also improve the oversight of key 

safety and security efforts through new indicators in 

its Annual Performance Plan for FY 2012. Revised 

safety and security indicators will directly measure 

the effectiveness of safety and security training, 

prevention, and response systems in each Peace 

Corps country; compliance with agency policies; and 

the changing security conditions in each country. 

Importantly, a new performance indicator will gauge 

Volunteer confidence in reporting serious crime 

incidents. Several indicators will also provide proxy 

measures of Volunteer safety and security, including a 

new indicator to set targets for Volunteer satisfaction 

with site selection and preparation. 

New Performance Indicators

A major emphasis in FY 2012 will be the implementation of new performance indicators, which will appear 

in the agency’s Annual Performance Plan for FY 2012. 

The changes in the agency’s performance indicators 

are designed to accomplish several key objectives: 

integrating the Comprehensive Agency Assessment 

into Peace Corps’ performance management system; 

raising the standard of performance measurement 

on safety and security to better reflect the agency’s 

emphasis on Volunteer safety and security; aligning activities with the U.S. government’s new Global 

Development Policy; and, advancing evidence-based 

monitoring and evaluation. The agency’s Annual Performance Plan for FY 2012 is ambitious in scope and 

reflects the emphasis the agency places on performance improvement across all five strategic goals.

The agency will ensure the indicators modified, 

replaced, or added for FY 2012 are well understood by 

the responsible units at headquarters and in the field 

and that programs are in place to respond to new challenges and opportunities. 

Presidential Policy Directive on Global 

Development

The agency is strategically aligned with the U.S. 

government’s Global Development Policy (GDP) 

announced in September 2010. The Annual Performance Plan is designed to advance the GDP’s 

emphasis on performance improvement and evidence-based management. New indicators focus on 

two specific areas emphasized by the GDP: strategic 

partnering (with other U.S. government agencies, 

Looking Forward

0
The Peace Corps :: performance and accountability report :: fiscal year 2011 19

Management’s Discussion and Analysis

NGOs, and multilateral organizations) and monitoring and evaluation. In addition, the agency will 

continue to sharpen its programmatic focus on 

highly effective, targeted interventions, an overarching priority of the new policy.

In FY 2012, the agency will ensure its programming is 

serving to advance the Administration’s Partnership 

for Growth initiative—a key component of the GDP. 

Peace Corps Volunteers extend the impact of U.S. 

development programs to the most remote corners 

of the world and currently serve in all four Partnership for Growth countries: El Salvador, Ghana, the 

Philippines, and Tanzania. For example, the agency 

will consider the feasibility of providing additional 

Teaching English as a Foreign Language education 

Volunteers in El Salvador to respond to the perceived 

lack of vocational education aimed at developing skills 

needed in the labor market, particularly English language skills. Engagement in the education and youth 

sectors in the Philippines will continue to provide 

direct support to the human capacity development priority of the policy. Finally, two Host Country Impact 

Studies will be completed in FY 2012 in Ghana and 

El Salvador (studies in the Philippines and Tanzania 

were completed in 2011 and 2010 respectively). 

Focus In/Train Up

Peace Corps is working aggressively to focus on key 

development sectors and train our Volunteers for 

excellence. A limited number of the most highlyeffective projects will be scaled up to maximize the 

skills and enthusiasm of the Volunteers, 85 percent of 

whom are young professionals. In support of this initiative, Peace Corps is designing world-class training 

and comprehensive support to prepare its Volunteers 

in these sectors. Measurement of the outcomes will 

be increasingly rigorous as the standard indicators for 

each sector, based on the state-of-the art in the field, 

are finalized and put into place.

Recommendations from the Comprehensive Agency 

Assessment included in the Annual Performance Plan 

will be further institutionalized into agency operations. One of the most significant recommendations is 

to focus on a smaller number of highly-effective, targeted technical interventions and to improve training 

to prepare Volunteers for their work. This initiative, 

Focus In/Train Up, will be the major focus of programming and training in FY 2012. 

The Focus In/Train Up initiative will institute standard global development indicators to better gauge 

the impact of development work abroad. The agency 

is making strategic investments to improve training 

for Volunteers at every stage, to ensure they are wellprepared to excel in meaningful jobs. 

Strategic Partnerships

Moving forward, the agency will continue to 

strengthen its relationships with strategic partners 

developed over the last two years and engage others 

in an effort to expand Volunteers’ impact abroad and 

enhance Volunteer recruitment and cross-cultural 

outreach to Americans.

Peace Corps Volunteers support the development 

efforts of other U.S. government agencies, reaching well beyond their geographic scope. One area 

Peace Corps is working aggressively to focus 

on key development sectors and train our Volunteers for excellence. A limited number of the 

most highly-effective projects will be scaled 

up to maximize the skills and enthusiasm of 

the Volunteers, 85 percent of whom are young 

professionals. In support of this initiative, 

Peace Corps is designing world-class training 

and comprehensive support to prepare its Volunteers in these sectors. Measurement of the 

outcomes will be increasingly rigorous as the 

standard indicators for each sector, based on the 

state-of-the art in the field, are finalized and put 

into place.
20 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

of programming that will receive priority attention in FY 2012 is the Stomp Out Malaria initiative 

in Africa.  This campaign takes full advantage of the 

Peace Corps’ unique “delivery capacity” at the grassroots level and will continue to be implemented at 

the country-level by Peace Corps and the President’s 

Malaria Initiative in conjunction with other partners. 

In FY 2012, the program will be extended to other 

countries in the region. In addition, the agency will 

continue implementing the Energy and Climate Partnership of the Americas, an interagency agreement 

with the State Department that provides $1 million to 

the Peace Corps to address energy and climate problems. Three Peace Corps countries have been added 

to the initial list of eight countries participating in this 

partnership.

Monitoring and Evaluation

The agency is moving decisively into a new era of 

measuring and evaluating impact to improve performance. Major advances were made in the monitoring 

and evaluation processes under the FY 2009-FY 2014 

Strategic Plan (www.peacecorps.gov/open). The challenge going forward is to coordinate and integrate the 

monitoring and evaluation activities undertaken at 

various levels within the agency and to standardize the 

collection and consistent use of data to inform management decisions across all posts and headquarters 

offices. These actions will support the Comprehensive Agency Assessment’s recommendation that the 

agency continue improving its ability to demonstrate 

the impact of its work. 

Looking forward, the agency will develop an agencywide evaluation policy that articulates the Peace 

Corps’ philosophy of participation, transparency, and 

local engagement to generate and apply knowledge. 

The agency will build Volunteers’ evaluation capacity 

with a mandatory monitoring and evaluation course 

included as a core competency in the Volunteers’ training and improve data collection and analysis tools for 

capturing the work of the Volunteers. The monitoring and evaluation capacity of host country staff and 

project partners will also be strengthened. Further, 

standard outcome indicators will be developed for Volunteer work activities in all six major sectors allowing 

the agency to aggregate the results of its work across 

the world.

This increased focus on monitoring and evaluation 

will create a learning environment in the agency, 

supporting improved performance and further facilitating evidence-based management. 

Volunteer Delivery System Improvements

The agency is developing innovative ways to adapt 

its Volunteer recruitment and assignment models 

in order to better meet host country skill needs and 

offer Volunteer opportunities to a greater number 

of Americans. The redesign of the Volunteer Delivery System will reach a major milestone in FY 2012 

when the new platform for the Peace Corps and 

Peace Corps Response Volunteer applications goes 

live. The new system, the Database of Volunteer 

Experience (DOVE), will improve the transparency, 

speed, and efficiency of the application process. It will 

also ensure that the agency has better information 

regarding Volunteer requests from overseas posts 

and that overseas posts are better informed about the 

available applicant supply.

The agency has been moving to a more decentralized 

recruitment model that allows service opportunities 

to be offered to more Americans. More college and 

field-based recruiters will place recruitment staff 

closer to the populations they are recruiting. The fieldbased recruiters will also be more cost-effective, as 

the travel costs to reach prospective applicants will be 

reduced.

The agency’s Peace Corps Response program provides 

posts with highly-skilled Volunteers for short-term, 

high-impact assignments. Currently, the program 

is open only to returned Volunteers. Moving forward, Peace Corps Response opportunities will be 

expanded beyond the returned Volunteer community, 
The Peace Corps :: performance and accountability report :: fiscal year 2011 21

Management’s Discussion and Analysis

based upon a Comprehensive Agency Assessment 

recommendation. Short-term assignments will be 

offered to individuals with more than 10 years of professional experience and the unique specialized skills 

host countries are requesting.  Opening Peace Corps 

Response to all skilled and experienced Americans 

will help the agency better respond to the need for 

higher technical skills. In addition, this move will 

provide service opportunities to individuals who are 

skilled and motivated to serve but who cannot devote 

two years to service. 

Summary

The strength of the Peace Corps is its Volunteers. The 

planned improvements and initiatives outlined here 

are designed to support the work they do in serving 

communities across the world. Volunteers represent 

the best of America—exemplifying in action the American value of helping people build better lives for 

themselves. Looking forward, the agency recommits 

itself to providing Volunteers with the skills and support they need to carry out this important work.

Spending time with children in 

a library, this Jamaica Volunteer 

shares the importance of reading.
22 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

Overview

An unqualified (clean) audit opinion was achieved on 

the FY 2011 financial statements for the fifth sequential year. The Congressional appropriation totaled 

$375 million less the enacted reduction of $750,000 

in FY 2011 and $400 million in FY 2010. The overall decrease of $25.8 million in appropriated funds 

at mid-year caused the agency to reduce staff, reduce 

program size, curtail or postpone planned systems 

initiatives, and delay the reporting dates for some 

applicants. The accounting system continues to be 

constrained and cannot accurately correlate actual 

costs with applied overhead to the agency strategic 

goals and outputs. The agency has two years in which 

to obligate appropriated funds and another five years 

in which to complete the payout process.

Analysis of Financial Results

Assets – What We Own and Manage. As of September 30, 2011, the Peace Corps’ total assets were 

$226.4 million on the Balance Sheet. Almost all of 

the assets, 77 percent, were in the Fund Balance 

with Treasury with 19 percent of the assets being in 

Property, Plant, and Equipment (PP&E). The overall 

asset decrease of $2.7 million when compared to the 

FY 2010 total assets of $229.1 million was due to the 

decrease in appropriated funding for FY 2011. 

Within the Fund Balance with Treasury, the $14.5 

million decrease was mainly due to the reduction 

in appropriated funding for FY 2011. This decrease 

in Assets was partially offset by the $12.0 million 

increase in PP&E as a result of improvements to the 

Peace Corps headquarters facility and an increase in 

equipment.

Agency assets are shown in the chart below: 

Analysis of Financial Statements

0

Property, Plant, and 

Equipment 

$43,888

19%

Prepaid Volunteer

Living Allowances 

$3,106

2%

Other Assets 

$4,243

2%

Fund Balance 

with Treasury 

$175,205

77%

FY 2011 Assets by Type

($ in Thousands)
The Peace Corps :: performance and accountability report :: fiscal year 2011 23

Management’s Discussion and Analysis

Liabilities – What We Owe. Total liabilities of 

$256.8 million were reflected on the Balance Sheet at 

the end of FY 2011. Liabilities increased $6.8 million 

from the FY 2010 level of $250.0 million primarily due 

to increased funding of Personal Services Contractor 

(PSC) Severance liability and Estimated Severance of 

Foreign National PSCs ($7.2 million) plus an increase 

in the Volunteer Readjustment Allowance of $6.6 

million to support the higher number of Volunteers 

in service. These increases were partially offset by 

decreases of $5.8 million in Accounts Payable and $5 

million in employee benefits. 

Net Cost – Results of Operations. The net cost of 

operations increased from $386.4 million in FY 2010 

to $390.3 million in FY 2011. The gross costs of the 

agency increased by $4.9 million during FY 2011 due 

to an increase of almost $900,000 in Unfunded Federal Employees Compensation Act (FECA) Liability 

and increases in personnel costs, medical care, and 

medical personal services contracts.

Limitations of the Principal Financial 

Statements

The principal financial statements have been prepared to report the financial position and results 

of operations of the Peace Corps, pursuant to the 

requirements of 31 U.S.C. 3515 (b). While the statements have been prepared from the entity’s books 

and records in accordance with generally accepted 

accounting principles for federal entities and the formats prescribed by the 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.

Accounts Payable

$10,028

4%

Other Employment Related

$11,573

5%

Other Liabilities

$8,341

3%

Unfunded Annual Leave

$9,136

3%

Unfunded FECA Liability

$30,737

12% Employee 

Benefits

$133,121

52%

Non-Entity 

Funds

$53,904

21%

FY 2011 Liabilities by Type

($ in Thousands)
24 The Peace Corps :: performance and accountability report :: fiscal year 2011

Management’s Discussion and Analysis

Management Assurances

Federal Managers’ Financial Integrity Act

The Federal Managers’ Financial Integrity Act 

(FMFIA) of 1982 requires agencies to establish 

accounting and administrative controls to include 

program, operational, and administrative areas, 

in addition to accounting and financial management. The implementation of internal accounting 

and administrative controls must provide reasonable assurance that (i) obligations and costs are in 

compliance with applicable law; (ii) funds, property, 

and other assets are safeguarded against waste, 

loss, unauthorized use, or misappropriation; and 

(iii) revenues and expenditures applicable to agency 

operations are properly recorded and accounted for 

to permit the preparation of accounts and reliable 

financial and statistical reports and to maintain 

accountability over the assets. The FMFIA establishes overall requirements for internal control and 

requires that the agency head evaluate and report 

annually on the control and financial systems that 

protect the integrity of federal programs (Section 2 

and Section 4 of FMFIA, respectively). OMB Circular A-123, Management’s Responsibility for Internal 

Control, implements the FMFIA and defines management’s responsibility for internal control in 

federal agencies. Further, OMB Circular A-127, 

Financial Management Systems, prescribes policies 

and standards to follow in managing financial management systems.

Financial Management Systems

The agency has a highly automated globally deployed 

multi-currency financial system, Odyssey, encompassing budgeting, projects, financials, procurement, 

cashiering, human resources, and payroll.  This 

system significantly reduced duplicate data entry 

and continues to enforce standard business processes, workflows, data validation and funds control 

throughout the agency. Odyssey is in the process 

of being upgraded to the latest version of the software product available from the commercial vendor. 

The financial system upgrade will further improve 

financial and budget management agencywide and 

allow uninterrupted vendor technical support. This 

upgrade will also leverage support for new integration 

and reporting requirements of the Treasury, OMB, 

and the General Services Administration. When the 

agency’s recently purchased inventory management 

system becomes operational in FY 2012, the financial 

system will be integrated, reducing manual reporting 

data entry for capital assets and improving internal 

controls over those assets. Long-term financial management system plans include continuing to make 

strides to reduce paper-based processes through 

the implementation of a document scanning and 

management system. Other long-term plans include 

expanding project and performance-based budgeting capability through the agencywide deployment 

of a commercial time keeping system integrated with 

Odyssey.

Internal Control within the Peace Corps

The Peace Corps achieved its fifth consecutive 

unqualified (clean) financial audit opinion during the 

FY 2011 annual financial statement audit. No material weaknesses or instances of noncompliance with 

laws and regulations were identified. The assurance 

Analysis of Systems, Controls, and Legal Compliance

0

The Peace Corps carries the torch of 

President Kennedy’s dream, and responds 

to President Obama’s call to service—

for, in President Obama’s words during his 

campaign, “Change will not come 

if we wait for some other person or 

some other time. We are the ones we’ve 

been waiting for. We are the change 

that we seek.”
The Peace Corps :: performance and accountability report :: fiscal year 2011 25

Management’s Discussion and Analysis

statement is consistent with the FY 2011 audit report. 

The agency’s internal control program is governed 

internally by Manual Section 784, Internal Control 

System, in addition to guidance reflected above. 

The reviews, audits, investigations and evaluations 

conducted by the Office of Inspector General during FY 2011 further supported the agency’s internal 

control program. Significant deficiencies and audit 

recommendations were monitored through the 

agency’s corrective action plan in meetings and documents. Assessments of risk by the department and 

office heads across the agency identified no material 

weaknesses during FY 2011. Annual management 

assurance statements completed by the department 

and office heads as of September 30, 2011, attested 

to the adequacy of internal controls and did not 

reveal any material weaknesses. 

FY 2011 Annual FMFIA Assurance Statement

The Peace Corps assessed the effectiveness of internal controls to support effective and efficient 

operations, reliable financial reporting, and compliance with applicable laws and regulations 

in accordance with the Federal Managers’ Financial Integrity Act (FMFIA) of 1982 Section 2 

and OMB Circular A-123. Based on this assessment, the Peace Corps can provide reasonable 

assurance for FY 2011 that its internal control over the effectiveness and efficiency of operations, 

financial reporting, and compliance with applicable laws and regulations was operating effectively and no material weaknesses were found in the design or operation of the internal controls.

The Peace Corps conducted its assessment of whether the financial management systems conform to government-wide financial systems requirements in accordance with FMFIA Section 4. 

Based on this assessment, the Peace Corps can provide reasonable assurance that its financial 

management systems are in compliance with the applicable provisions of FMFIA Section 4 and 

OMB Circular A-127 for FY 2011.

Aaron S. Williams, Director

November 15, 2011

Joseph L. Hepp, Jr., Chief Financial Officer

November 15, 2011
This page was intentionally left blank
Performance Section

An Education Volunteer teaches 

English to students during a summer 

school session in Sierra Leone.
28 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Introduction to Agency Performance 

The Performance Section presents the agency’s performance in Fiscal Year 2011—the third year of agency operations under the FY 2009-FY 2014 Strategic Plan. This section discusses the agency’s progress on the five strategic 

goals and 38 performance indicators outlined in the agency’s Performance Plan for Fiscal Years 2009-2011.

The rationale for each indicator describes how it measures strategic, outcome, and performance goals. Subsequent discussion links the major agency activities associated with the indicator to the results achieved. Finally, 

information is provided on how the agency will strengthen performance moving forward. The data source for each 

performance indicator also is included.

Plans and schedules for achieving performance indicators where the targets were not met are presented in the 

appropriate sections where available. Moving forward, the agency will utilize the first Strategic Plan Quarterly 

Performance Review session to discuss areas of improvement and will monitor progress in quarterly sessions 

throughout the year.

Trend data from FY 2009 to FY 2011—comparing performance targets to results—is included, and where available, baseline data from FY 2008 is also provided. Since the agency only started to use the current performance 

indicators in FY 2009, performance data prior to FY 2009 is not available for these indicators.

The agency developed some new and revised performance indicators, which will be introduced in the Annual Performance Plan for FY 2012, along with updated targets for some of the other performance indicators.

Performance Improvement and Data Quality

The agency is strongly committed to performance improvement through the use of high quality performance data. 

The Office of Strategic Information, Research and Planning (OSIRP) is responsible for performance planning and 

reporting and works closely with agency stakeholders to collect and analyze performance data to improve operations of the agency. Additionally, the director of OSIRP serves as the performance improvement officer for the 

agency. The agency ensures data are accurate and used by leaders to inform decision making through the following 

steps:

•	 Strategic Plan Quarterly Performance Review sessions. Key agency stakeholders, including senior 

management, review performance data at the end of each quarter to ensure data collection standards are 

followed and to develop strategies to meet performance targets when areas for improvement are identified.

•	 Performance indicator data reference sheets. Data collection and reporting consistency is ensured by 

the use of detailed indicator data reference sheets, which include operational definitions, data sources, and a 

comprehensive methodology for measuring each performance indicator.

•	 Independent data quality checks. OSIRP independently reviews the completeness and accuracy of 

performance data submitted from business units.

Agency Performance

0
The Peace Corps :: performance and accountability report :: fiscal year 2011 29

Performance Section

Verification and Validation of Performance Data

The agency utilizes several data sources to measure performance indicators. The Annual Volunteer Survey (AVS) 

provides data for 12 indicators. Overseas posts submit data for six indicators, and headquarters offices supply data 

for the remaining 20 indicators through Peace Corps Enterprise Database systems.

Annual Volunteer Survey

The AVS is a voluntary survey and provides feedback directly from the Volunteers regarding agency activities. The 

consistently high response rate from Volunteers (86 percent in FY 2011) ensures the responses reliably represent 

the Volunteers. 

The demographic profile of respondents is compared to all Volunteers in service to confirm respondents are 

representative of the Volunteer population as a whole. In FY 2011, the AVS respondents were appropriately representative of the Volunteers. Responses to AVS questions are entered by Volunteers and housed in an external, 

electronic survey database. Faulty data are cleaned prior to analysis and constitute only a small percentage of 

overall responses. Analyzed data are used to inform management of the Volunteers’ perspective on key issues. 

The high response rate from Volunteers and verification and validation measures ensure the high level of AVS data 

accuracy needed for its intended use.

Peace Corps Enterprise Database Systems

The agency maintains several enterprise database systems to collect Volunteer and program information. Only 

authorized staff members who have been properly trained can access key systems, maintaining data integrity 

and ensuring data entry methodology is followed. Regular reconciliation processes between agency units enable 

users to verify and test performance data to isolate and correct errors. Internal, automated system processes also 

ensure data are appropriately transferred between different applications. The required level of accuracy to provide 

current and historical information about programs and Volunteers is met through database rules and business 

processes. Where data limitations do exist, largely due to data entry compliance in isolated systems, they are noted 

in the appropriate indicator section. 

Overseas posts

Overseas posts submit data for six performance indicators through an online survey at the end of the fiscal year. 

Senior leaders from all overseas posts responded to the survey in FY 2011, providing valid performance data. The 

survey was designed with clear logic to minimize data entry error. Data were independently reviewed and anomalies were addressed and corrected to improve data quality. The survey gathers the activities of overseas posts. As 

all posts responded to the survey in FY 2011 and high data quality was established, the required level of accuracy 

was met.

Summary

The agency’s FY 2011 performance results are based on reliable and valid data that are complete as of the compilation of results at the end of the fiscal year. The agency places great value and emphasis on continuously improving 

its performance reporting procedures and processes.
30 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Strategic Goal 1: Enhance the capacity of host country individuals, organizations, and communities to 

meet their skill needs

Performance Management Framework

Performance Summary:

The agency met all but one of the 10 performance targets for this strategic goal in FY 2011. 

Outcome Goal 1.1: Country programs fulfill host country skill needs 

The agency met the technical skill needs of the host country by facilitating active local participation in the design 

of all Volunteer projects, a key step in garnering local support. The Volunteers chosen to serve were well-supported 

by the agency ensuring that they served the essential amount of time to fill the skill needs of the host country. 

Finally, post staff continued its collaboration with partners and stakeholders by reporting on the results of the 

work through annual progress reports.

Outcome Goal 1.2: Volunteers have the competencies necessary to implement a country program

The agency successfully provided Volunteers with the needed technical and language training to ensure they had 

the necessary skills to serve their host communities. 

Outcome Goal 1.3: Host country individuals, organizations, and communities demonstrate an enhanced 

capacity to meet their own needs

Significant improvement was made in building local capacity in FY 2011. The agency continued to measure the 

results of the Volunteers’ work. Volunteer-reported data on the effectiveness of skills transfer were validated 

Performance Goal 1.2.1:

Ensure the effectiveness of

in-country training

Performance Goal 1.3.1:

Increase the effectiveness of skills 

transfer to host country individuals, 

organizations, and communities

Performance Goal 1.1.1:

Ensure the effectiveness of

in-country programs

Annual Performance Results

0

Strategic Goal 1:

Enhance the capacity of host country 

individuals,organizations, and communities to meet their needs

Outcome Goal 1.2:

Volunteers have the competencies 

necessary to implement a

country program

Outcome Goal 1.3:

Host country individuals, organizations, 

and communities demonstrate

an enhanced capacity to meet

their own needs

Outcome Goal 1.1:

Country programs fulfill host

country skill needs 

Performance Goal 1.2.1:

Ensure the effectiveness of

in-country training

Performance Goal 1.3.1:

Increase the effectiveness of skills 

transfer to host country individuals, 

organizations, and communities

Performance Goal 1.1.1:

Ensure the effectiveness of

in-country programs
The Peace Corps :: performance and accountability report :: fiscal year 2011 31

Performance Section

through objective Host Country Impact Studies, with 86 percent of host country national respondents reporting 

Volunteers helped them build their capacity. While the unique challenges of HIV/AIDS outreach shaded Volunteers’ perceptions of their effectiveness, feedback from host country nationals indicated Volunteers are making a 

significant contribution in the fight against HIV/AIDS—an observation that Volunteers are often not able to make 

because impacts are often seen after they leave service.

Performance Indicator Summary

Performance Indicator FY 2009 

Target 

Met

FY 2010 

Target 

Met

FY 2011 

Target

Result Target 

Met

1.1.1.a Percentage of project plans that meet the 

expressed needs of the host country

Yes Yes 95% 100% Yes

1.1.1.b Percentage of posts that provide annual 

progress reports to their host country 

agency sponsors and partners

No No 85% 87% Yes

1.1.1.c Enhance the average length of service of 

Volunteers to equal or exceed 21 months

Yes Yes 21 mo 22.3 

mo

Yes

1.2.1.a Percentage of Volunteers who meet local 

language requirements for service per post 

testing standards

Yes Yes 85% 85% Yes

1.2.1.b Percentage of Volunteers reporting training 

as adequate or better in preparing them 

technically for service

Yes Yes 75% 79% Yes

1.2.1.c Percentage of Volunteers reporting training 

as adequate or better in preparing them to 

work with their counterparts 

Yes Yes 65% 78% Yes

1.3.1.a Percentage of Volunteers reporting that 

their work transferred skills to host country 

individuals and organizations adequately 

or better

Yes Yes 75% 86% Yes

1.3.1.b Percentage of Volunteers who report their 

HIV/AIDS education and outreach work is 

effective or better

No No 85% 59% No

1.3.1.c Percentage of projects that document 

increases in host country national capacity

Yes Yes 80% 97% Yes

1.3.1.d Percentage of partner organizations 

reporting their assigned Volunteer 

fulfilled their requested need for technical 

assistance

Yes Yes 70% 82% Yes

Performance Goal 1.1.1: Ensure the effectiveness of in-country programs 

Indicator 1.1.1.a: Percentage of project plans that meet the expressed needs of the host country

FY 2011 Target Result Target Met

95% 100% Yes
32 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Rationale: Effective programs address the expressed needs of the host country. When Peace Corps engages host 

country nationals in identifying the areas in which Volunteers will work, local support is higher and projects are 

more likely to succeed. 

Discussion of Result: The target was met. In FY 2011, all 

Peace Corps projects were developed jointly with host country 

stakeholders. Project plans were designed in collaboration with 

the Peace Corps and host country agencies’ staff. Once Volunteers were assigned to local communities, they continued to 

define the activities with their local work partners. Most plans 

were also periodically reviewed by Project Advisory Committees whose members represent Peace Corps staff, Volunteers, 

and host country partners. This fiscal year, Peace Corps implemented the Focus In/Train Up recommendation of the FY 2010 

Comprehensive Agency Assessment by reviewing all projects 

and identifying the most highly effective to scale up worldwide. 

Strengthening Future Performance: The indicator has been 

revised to measure the percentage of posts that meet annually with host country Project Advisory Committees. 

This change ensures local partners are continuously consulted throughout the life of a project, not just at the 

design phase. The agency will continue to analyze the posts’ portfolios to focus on the most effective methods used. 

In addition, updated guidance on designing project plans will be published in FY 2012.

Data Source: Peace Corps Enterprise Database

Indicator 1.1.1.b: Percentage of posts that provide annual progress reports to their host country agency 

sponsors and partners

FY 2011 Target Result Target Met

85% 87% Yes

Rationale: The agency collaborates with partners and increases 

the agency’s accountability to the host country by reporting 

progress annually to host country partners.

Discussion of Result: The target was met. The number of 

posts providing annual reports to their host country partners 

significantly increased this fiscal year, jumping to 87 percent 

from 70 percent in FY 2010.

The annual reports, completed in the host country language and 

in English, summarized the results of the program, using information from Volunteers’ quarterly reports, site visits by project 

managers, and program evaluations. 

FY 2009 FY 2010 FY 2011

Target 85% 90% 95%

Result 97% 98% 100%

75%

80%

85%

90%

95%

100%

Percentage of project plans that meet the 

expressed needs of the host country

Target Result

FY 2008 FY 2009 FY 2010 FY 2011

Target 75% 80% 85%

Result 62% 53% 70% 87%

0%

20%

40%

60%

80%

100%

Percentage of posts that provide annual 

progress reports to their host country 

agency sponsors and partners

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 33

Performance Section

The reports took different forms from post to post, ranging from highlights of the projects to sector-specific reports 

with photographs and testimonials from beneficiaries. 

Several posts cited the benefit of meeting with partners to present their report. Posts that have been preparing 

reports for several years noted the best use of the report is to view it as a process of dialogue with partners throughout the year, culminating in a final report.

High performance for this indicator in FY 2011 can be attributed to the importance agency senior leadership, 

including country directors, placed on sharing annual results with partners. Also, the agency shared promising 

practices identified from an analysis of posts’ performance on this indicator in FY 2010. The report also described 

solutions from posts that had fully met this indicator and overcame resource constraints. Finally, this indicator 

received particular attention at each Strategic Plan Quarterly Performance Review.

Strengthening Future Performance: The agency will continue to share the successful strategies among posts to 

increase communications with and accountability to host country partners. Regional managers will continue to 

reinforce this message with post staff. 

Data Source: Overseas posts

Indicator 1.1.1.c: Enhance the average length of service of Volunteers to equal or exceed 21 months

FY 2011 Target Result Target Met

21 months 22.3 months Yes

Rationale: Projects are designed to require a specific amount of Volunteer service time for effective implementation. Volunteers who complete their service are more fully integrated into their communities, acquire greater 

language proficiency, and report higher rates of success and satisfaction with their work. 

Discussion of Result: The target was met. To maximize performance on this indicator, the agency fosters an environment 

where Volunteers receive the necessary support to do their work. 

The support ranges from developing projects that offer satisfying 

work and address host country needs, to providing training and 

in-country support to be safe, healthy, and successful. Appropriate site selection and preparation is also important to ensure the 

local community is supportive of working with a Volunteer. 

Strengthening Future Performance: A revised indicator will 

focus on completion of service rather than number of months 

served. Some projects are designed for more or less time than the 

typical two years of Volunteer service. Additionally, Volunteers 

can extend their service for several months to complete projects 

which can drive up the months-of-service average. The revised indicator will measure the percentage of service 

completed by Volunteers to tie the measure more closely to program effectiveness. 

FY 2008 FY 2009 FY 2010 FY 2011

Target 21.0 21.0 21.0

Result 20.9 22.1 22.6 22.3

20.0

20.5

21.0

21.5

22.0

22.5

23.0

Enhance the average length of service of

Volunteers to equal or exceed 21 months

Target Result
34 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Data Source: Peace Corps Enterprise Database 

Performance Goal 1.2.1: Ensure the effectiveness of in-country training 

Indicator 1.2.1.a: Percentage of Volunteers who meet local language requirements for service per post 

testing standards

FY 2011 Target Result Target Met

85% 85% Yes

Rationale: Volunteers who speak the language of the community in which they are working are more sensitive to 

the culture, more integrated into their community, and more effective in their work. 

Discussion of Result: The target was met. All Volunteers who 

have studied a language at post are tested by a certified language 

instructor at the end of pre-service training to determine their 

language proficiency. This year, the agency introduced several 

innovations in the language training program:

•	 Implemented a French language immersion program for 

Volunteers with minimal French skills who are assigned to 

Francophone Africa

•	 Disseminated best practices to language coordinators 

through a bimonthly newsletter

•	 Facilitated workshops on language materials development 

to build the skills of local language teachers

The agency has improved compliance with this indicator by 

collecting language testing information directly from posts through a new reporting system. However, technical 

issues related to a new reporting tool, as well as a lack of reporting by some posts meant performance data was 

incomplete and results not representative. 

Strengthening Future Performance: The agency is exploring methods for improving language instruction, 

including providing language training that would extend beyond pre-service training; increasing language tester 

workshops and consulting with posts to develop language training materials. Further, data quality will improve as 

the reporting tool is upgraded. 

Data Source: Peace Corps Enterprise Database

Indicator 1.2.1.b: Percentage of Volunteers reporting training as adequate or better in preparing them 

technically for service

FY 2011 Target Result Target Met

75% 79% Yes

FY 2009 FY 2010 FY 2011

Target 85% 85% 85%

Result 93% 87% 85%

80%

82%

84%

86%

88%

90%

92%

94%

Percentage of Volunteers who meet local

language requirements for service per 

post testing standards

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 35

Performance Section

Rationale: Volunteers who have been adequately trained in technical areas have the competencies necessary to 

address host country needs. 

Discussion of Result: The target was met. The agency 

responds to host country needs by recruiting Volunteers who 

have excellent skills and experience in broad content areas. In 

addition, they receive technical training from Peace Corps to 

prepare for their local, project-specific work.

In FY 2011, the agency provided posts with regional training 

workshops, general staff development, and individual staff training opportunities. Posts conduct training design evaluations 

each year to measure the effectiveness of training.

The agency’s strategic partners also contributed specialized 

technical training in FY 2011. For example, 28 posts implemented 121 training activities on the capacity-building of local 

partners through the agency’s agreement with the U.S. Agency for International Development. Other partners 

provided technical training during pre-service training in addition to focused technical training workshops, field 

exercises, and on-site visits from staff and technical experts during the Volunteers’ service. 

Strengthening Future Performance: Updated programming and training guidance will be published in FY 2012 

to help post staff improve programming, training, and evaluation. The Focus In/Train Up initiative will also 

improve training materials and delivery. 

Data Source: Annual Volunteer Survey

Indicator 1.2.1.c: Percentage of Volunteers reporting training as adequate or better in preparing them to 

work with their counterparts

FY 2011 Target Result Target Met

65% 78% Yes

Rationale: Volunteers work with local counterparts to address 

host country needs by building local capacity. Volunteers who 

are well-prepared to work with counterparts are more successful in their projects.

Discussion of Result: The target was met. In FY 2011, the 

agency developed a new training module on working with counterparts. The module is taught during pre-service training and 

features a combination of real-life training activities and community involvement that simulates the actual environment in 

which the Volunteers will be working with their counterparts. 

FY 2008 FY 2009 FY 2010 FY 2011

Target 70% 72% 75%

Result 78% 80% 80% 79%

65%

70%

75%

80%

85%

Percentage of Volunteers reporting 

training as adequate or better in 

preparing them technically for service

Target Result

FY 2008 FY 2009 FY 2010 FY 2011

Target 60% 62% 65%

Result 74% 79% 79% 78%

50%

55%

60%

65%

70%

75%

80%

85%

Percentage of Volunteers reporting 

training as adequate or better in 

preparing them to work with their 

counterparts 

Target Result
36 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Strengthening Future Performance: Posts will continue to improve training packages to Volunteers as the 

Focus In/Train Up initiative is rolled out. Best practices will be shared across posts and will improve the effectiveness of training. Targets will be increased for future years.

Data Source: Annual Volunteer Survey

Performance Goal 1.3.1: Increase the effectiveness of skills transfer to host country individuals, 

organizations, and communities

Indicator 1.3.1.a: Percentage of Volunteers reporting that their work transferred skills to host country 

individuals and organizations adequately or better

FY 2011 Target Result Target Met

75% 86% Yes

Rationale: Volunteers build local capacity by transferring new skills to host country individuals and organizations. Their observations on the changes in the skills of their community partners as a result of their work are one 

measure of the agency’s impact.

Discussion of Result: The target was met. Various factors play 

a part in a Volunteer’s ability to transfer skills to others, including training, assignment, site selection, and staff support. The 

information provided by the Volunteers indicates that they are 

effectively prepared and are teaching new skills to their partners. 

The Host Country Impact Studies, which provide information 

from host country counterparts and beneficiaries, corroborate 

the Volunteers’ perceptions. In seven Host Country Impact 

Studies completed in FY 2011 (Botswana, Cape Verde, Fiji, Peru, 

the Philippines, Thailand, Togo), 86 percent of host country 

national respondents said Volunteers had helped them to build 

their capacity. 

In FY 2011, a standardized monitoring and evaluation training package for Volunteers was introduced to posts as part of the Focus In/Train Up initiative. This training 

will improve Volunteers’ ability to empirically measure their impact and the effectiveness of capacity building. 

The training package, which supports the agency’s initiative to establish global indicators for project outcomes, 

includes a global reporting mechanism. 

Strengthening Future Performance: As the performance targets were exceeded for this indicator, targets will 

be increased for FY 2012 and beyond. Improved training, along with improved reporting methods, will allow the 

agency to aggregate data and more accurately report on the outcomes of Volunteer activities. 

Data Source: Annual Volunteer Survey

FY 2008 FY 2009 FY 2010 FY 2011

Target 70% 72% 75%

Result 84% 88% 85% 86%

55%

60%

65%

70%

75%

80%

85%

90%

Percentage of Volunteers reporting that 

their work transferred skills to host

country individuals and organizations 

adequately or better

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 37

Performance Section

Indicator 1.3.1.b: Percentage of Volunteers who report their HIV/AIDS education and outreach work is 

effective or better

FY 2011 Target Result Target Met

85% 59% No

Rationale: As the focus of the HIV/AIDS program is transferring education skills to local people, Volunteers 

reporting their HIV/AIDS work is effective is one indication the program is achieving the desired results.

Discussion of Result: The target was not met. In FY 2011, 52 

percent of the Volunteers reported conducting HIV/AIDS activities and slightly more than half (59 percent) reported their work 

was often or almost always effective or better. However, 66 percent of Volunteers whose HIV/AIDS activities were part of their 

primary activities report their work was often or almost always 

effective or better. In contrast, 44 percent of Volunteers who 

conducted HIV/AIDS activities only occasionally reported their 

HIV/AIDS work was often or almost always effective or better. 

While all Volunteers conducting HIV/AIDS work receive training, Volunteers primarily focused on HIV/AIDS outreach and 

education activities receive more comprehensive training and 

are better able to measure their effectiveness. 

HIV/AIDS prevention outreach and education is a difficult assignment due to the taboo of discussing sex and 

sexuality in many of the communities in which Volunteers work. The stigma that people living with HIV/AIDS 

encounter also makes effective engagement with these vulnerable populations very difficult. 

Many Volunteers report challenges in measuring the effectiveness of their HIV/AIDS interventions; they know 

they taught the lesson, but are unsure if that knowledge resulted in behavior change. While it may be difficult for 

individual Volunteers to determine the impact of their HIV/AIDS activities, information from the agency’s Host 

Country Impact Studies indicate that Volunteers’ prevention and education activities are making an impact. 

Results from the Botswana Host Country Impact Study, for example, show the following significant influence of 

Volunteers’ work: 

•	 81 percent of counterparts and beneficiaries reported the training they received from the Volunteer 

significantly enhanced their skills and knowledge of HIV prevention

•	 88 percent of counterparts reported local organizations were better able to provide HIV/AIDS related 

prevention, care, and treatment services 

•	 87 percent of counterparts revealed that the stigma related to HIV/AIDS and discrimination against people 

living with HIV/AIDS had declined due to the work of the Volunteers

•	 86 percent of counterparts and 76 percent of beneficiaries reported that more community members are 

being tested for HIV/AIDS after working with the Volunteers

FY 2008 FY 2009 FY 2010 FY 2011

Target 75% 80% 85%

Result 44% 59% 56% 59%

40%

50%

60%

70%

80%

90%

Percentage of Volunteers who report

their HIV/AIDS education and outreach 

work is effective or better

Target Result
38 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

•	 72 percent of counterparts reported that having the Volunteer live in their community was the most 

significant difference compared to other programs and the key factor in changing attitudes and behaviors.

Strengthening Future Performance: To improve Volunteer readiness to implement effective HIV/AIDS programs, the agency is developing new training packages and continuing its partnership with the Presidents’ 

Emergency Plan for AIDS Relief throughout FY 2012. This indicator will be reviewed in FY 2012 to determine if 

it is a practical and feasible measure.

Data Source: Annual Volunteer Survey

Indicator 1.3.1.c: Percentage of projects that document increases in host country national capacity

FY 2011 Target Result Target Met

80% 97% Yes

Rationale: Objective information collected about increases in the capacity of host country nationals is evidence 

that sustained results have been achieved. The indicator measures the capacity-building work of the Volunteer 

through information collected directly from host country nationals and independent measures.

Discussion of Result: The target was met. Nearly all of the 

posts where Volunteers served in FY 2011 documented an 

increase in host country national capacity for all of their projects 

(97 percent of all posts). This represents a large increase from the 

baseline (86 percent) and from last year (85 percent). 

The significant increase is attributed to the growing emphasis 

the agency has placed on measuring the results of the Volunteer’s 

work. The technical teams at posts and headquarters have identified measurement tools for each major project and increased 

the training provided to Volunteers and partners. This year, 

posts reported using a variety of methods to measure capacity 

building, ranging from Volunteer reports (97 percent of posts) 

to documented observations (67 percent), interviews, and some 

pre- and post-testing (29 percent). Posts with more projects used a greater variety of methods to measure changes 

in capacity building. 

The first training package developed for the Focus In/Train Up initiative was the monitoring and evaluation package for Volunteers. The course was tested in FY 2011 and will be used by all posts in FY 2012. 

Strengthening Future Performance: This indicator has been revised to ask posts to provide multiple sources to 

validate their capacity-building data. All posts will begin reporting on standardized global indicators in FY 2012. 

The Volunteer reporting tool also will be improved to better capture the data collected.

Data Source: Overseas Posts

FY 2008 FY 2009 FY 2010 FY 2011

Target 70% 75% 80%

Result 86% 91% 85% 97%

50%

60%

70%

80%

90%

100%

Percentage of projects that document

increases in host country national

capacity

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 39

Performance Section

Host Country Impact Studies

The Host Country Impact Studies provide direct evidence of how Volunteers accomplish Goal One. The 

Philippines Impact Study of the education project interviewed 245 teachers, students, principals, and host 

families to evaluate the long-term impact of working with a Peace Corps Volunteer. The study showed that 

Volunteers are increasing capacity not only in the intended outcomes, but are also building capacity in 

unexpected and positive ways.

Students and teachers who worked with a Volunteer increased their self-confidence and competence in 

speaking English, and students improved their reading comprehension enough to reach or exceed their 

grade level. After working with a Volunteer, teachers had better access to educational resources and used 

interactive, student-centered methods in their classrooms. These changes represent the primary intended 

outcomes of the project.

Students and teachers also reported two significant unintended changes. First, teachers and principals 

explained that students had increased their self-confidence in general, not just in speaking English. Students reported that working with a Volunteer had increased their sense of self-worth and led them to try 

new academic activities and challenges.

Second, students and teachers reported an improved student-teacher relationship in school. According to 

respondents, Volunteers were more approachable outside of class, as this Filipino student detailed:

“Every time you greet [Volunteers, they] always start a conversation with you, while the other teachers when you 

say ‘Good morning’ or ‘Good afternoon’ they only reply but don’t talk to you and they don’t make conversation.”

After working with a Volunteer, some teachers adopted this more approachable demeanor. As a result, students reported they studied harder for these teachers and teachers commented that students show up for 

class and are more engaged in learning. Both students and teachers believed that a new student-teacher 

relationship emerged and felt the Volunteers had helped not only academically but also emotionally.

Indicator 1.3.1.d: Percentage of partner organizations reporting their assigned Volunteer fulfilled their 

requested need for technical assistance

FY 2011 Target Result Target Met

70% 82% Yes

Rationale: Positive feedback from partner organizations about a Volunteer’s work demonstrates that Peace Corps 

is responding to host country needs.
40 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Discussion of Result: The target was met. Volunteers worked 

with more than 6,500 partners in FY 2011; 82 percent of these 

partner organizations reported their assigned Volunteers fulfilled their requested needs for technical assistance, a significant 

increase from previous years. 

Many posts gathered information about this topic directly from 

local beneficiaries and counterparts during site visits (94 percent), through training or other events (75 percent), or during 

program advisory committee meetings (46 percent). Thirty-five 

percent of posts used evaluations to learn how Volunteers were 

meeting host country needs.

Host Country Impact Studies provided insights into the ways in 

which host country organizations’ needs are met through the work of the Volunteers. In the Philippines study, for 

example, 79 percent of counterparts and beneficiaries reported their students’ improved confidence and competence in using English best met their needs. 

Strengthening Future Performance: The validity and reliability for this indicator are currently strong. In the 

Annual Performance Plan for FY 2012, posts will collect data for this indicator using more formal collection methods and analyses. Post staff members will improve their skills in data collection and analysis, and the agency will 

improve the global reporting tool and database used by posts.

Data Source: Overseas posts

Strategic Goal 2: Promote a better understanding of Americans on the part of host country individuals, 

organizations, and communities served by Volunteers

Performance Management Framework

FY 2008 FY 2009 FY 2010 FY 2011

Target 50% 60% 70%

Result 82% 52% 72% 82%

40%

50%

60%

70%

80%

90%

Percentage of partner organizations at

post reporting their assigned Volunteer

fulfilled their requested need for 

technical assistance

Target Result

Strategic Goal 2:

Promote a better understanding of Americans on the part of host country individuals, 

organizations, and communities served by Volunteers 

Outcome Goal 2.1:

Host country individuals and communities learn about Americans through

shared experiences with Peace Corps Volunteers 

Performance Goal 2.1.1:

The work and life experiences of Volunteers in country promote host country

national learning about Americans 
The Peace Corps :: performance and accountability report :: fiscal year 2011 41

Performance Section

Performance Summary:

The agency failed to meet two of the three measured performance targets for this strategic goal. While 90 percent 

of the Volunteers reported satisfaction with their cross-cultural training, the target of 93 percent was not reached. 

The original indicator measuring host country nationals’ views is no longer being used. However, an alternate measure provided objective information that Volunteers’ work helped promote a better understanding of Americans. 

Outcome Goal 2.1: Host country individuals and communities learn about Americans through shared 

experiences with Peace Corps Volunteers

One of the agency’s primary activities for achieving the strategic goal is cross-cultural training for Volunteers, 

staff, and host country counterparts and supervisors. There were no significant changes to the content or delivery 

of cross-cultural training in FY 2011.

Results from the studies conducted in FY 2011 indicate that host country nationals’ interactions with Volunteers 

helped them develop more realistic and well-rounded impressions of Americans and their opinions became more 

positive as a result.

Performance Indicator Summary

Performance Indicator FY 2009 

Target Met

FY 2010 

Target Met

FY 2011 

Target

Result Target 

Met

2.1.1.a Percentage of Volunteers reporting 

that training prepared them to manage 

cultural differences during service 

adequately or better 

Yes No 93% 90% No

2.1.1.b Percentage of posts conducting 

supervisory/counterpart training on 

working effectively with Volunteers

Yes Yes 95% 99% Yes

2.1.1.c Percentage of host country nationals 

who have interacted with Volunteers who 

believe that Americans are committed to 

assisting other peoples

Not measured

2.1.1.d Percentage of Volunteers reporting 

that their work helps promote a better 

understanding of Americans on the part 

of the peoples served

No No 85% 65% No

Performance Goal 2.1.1: The work and life experiences of Volunteers in-country promote host country 

national learning about Americans

Indicator 2.1.1.a: Percentage of Volunteers reporting that training prepared them to manage cultural 

differences during service adequately or better

FY 2011 Target Result Target Met

93% 90% No
42 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Rationale: To effectively communicate with host country nationals and share information about Americans in 

ways that are culturally appropriate, Volunteers need to understand and function in the culture of their host country. Training increases Volunteers’ understanding of the culture in which they will live and work, builds skills for 

managing cultural differences, and establishes a framework for processing what they are experiencing in their 

host country.

Discussion of Result: The target was not met. While the 

target of 93 percent was not met, a high number, 90 percent, of 

Volunteers reported their training prepared them to manage the 

cultural differences they would encounter during their service. 

The agency will continue to provide cross-cultural training to 

Volunteers during their pre-service training and will reinforce 

the importance of being aware of cross-cultural differences. 

Strengthening Future Performance: The Focus In/Train 

Up initiative identified “integrating into the community” as a 

core competency for all Volunteers. The agency is developing 

a standard curriculum for all Volunteers that focuses on building these core competencies, and the complete training package 

will be built into each posts’ pre-service training in FY 2012. 

Data Source: Annual Volunteer Survey

Indicator 2.1.1.b: Percentage of posts conducting supervisory/counterpart training on working effectively 

with Volunteers

FY 2011 Target Result Target Met

95% 99% Yes

Rationale: Supervisors and counterparts who receive training on working effectively with Volunteers will better 

understand American culture and therefore be better positioned to help Volunteers adjust to the local community. 

Discussion of Result: The target was met. Nearly all posts 

(99 percent) conducted training for counterparts and supervisors. The agency values mutual learning, thus, most posts chose 

to train counterparts and Volunteers together. The workshops 

used a participatory approach where the counterpart and the 

Volunteer worked together to prepare a work plan for the Volunteer’s first six months to a year in service. This practice provides 

a foundation for the counterpart and the Volunteer to establish 

mutually agreed-upon expectations and work objectives, while 

also creating team spirit and a system of accountability. Counterparts expressed their support for the workshop format due to 

the personal and professional benefit derived through exchanging ideas not only with the Volunteers and training facilitators, 

but from their peers as well.

FY 2008 FY 2009 FY 2010 FY 2011

Target 91% 92% 93%

Result 91% 92% 91% 90%

80%

85%

90%

95%

Percentage of Volunteers reporting that 

training prepared them to manage 

cultural differences during service 

adequately or better 

Target Result

FY 2008 FY 2009 FY 2010 FY 2011

Target 95% 95% 95%

Result 98% 100% 98% 99%

80%

85%

90%

95%

100%

Percentage of posts conducting 

supervisory/counterpart training on 

working effectively with Volunteers

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 43

Performance Section

Strengthening Future Performance: The agency plans a new counterpart survey in FY 2012 to collect data on a 

number of issues, including the effectiveness of counterpart training. 

Data Source: Overseas posts 

Indicator 2.1.1.c: Percentage of host country nationals who have interacted with Volunteers who believe 

that Americans are committed to assisting other peoples

FY 2011 Target Result Target Met

Not measured

Rationale: The indicator was intended to measure host country individuals’ willingness to trust and work with 

Americans. 

Discussion of Result: No targets were set for this indicator. The agency is not reporting on this indicator. The 

indicator was established in the agency’s FY 2009-2011 Performance Plan as the Host Country Impact Studies 

were under development in FY 2008. Upon completion of the pilot studies, the agency determined that the indicator was not a valid measure of host country nationals’ perceptions of Americans after interacting with Volunteers. 

Instead, this question was replaced with a different measure: Percentage of respondents who report a positive 

opinion of Americans after interacting with a Volunteer. 

The new measure has been included in the Host Country Impact Studies since 2009 and provides valuable information on host country national perceptions about Americans. The findings from seven studies completed in 

FY 2011 show that 87 percent of host country nationals reported developing a more thorough understanding of 

Americans after interacting with Volunteers. Ninety percent said their opinions of Americans were more positive 

after interacting with Volunteers. 

Strengthening Future Performance: To reflect the changes made in the impact studies, the indicator will be 

modified to “percentage of host country nationals who report positive opinions of Americans through their interactions with Volunteers.” 

Data Source: Host Country Impact Studies

Indicator 2.1.1.d: Percentage of Volunteers reporting that their work helps promote a better 

understanding of Americans on the part of the peoples served

FY 2011 Target Result Target Met

85% 65% No

Rationale: When Volunteers work with host country partners they interact with host country individuals who 

then can learn more about Americans. 

Discussion of Result: The target was not met. Volunteers promote a better understanding of Americans 

through their work and by living and interacting with the people they serve. By only focusing on Volunteer “work,” 

the full range of Volunteer work and social interactions with host country individuals is not captured. 
44 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Earlier analysis of data from the Host Country Impact Studies 

found that people who had worked and interacted on a social 

level with Volunteers knew them better and were more likely to 

change their opinions of Americans, compared with those who 

only worked with the Volunteer. It remains unclear, however, 

why Volunteer perceptions of host country nationals’ understanding of Americans are declining.

Strengthening Future Performance: A revised indicator will 

include the “activities and interactions” of Volunteers rather 

than just interactions at “work” to measure the full range of their 

interaction with host country nationals. 

Data Source: Annual Volunteer Survey

Strategic Goal 3: Foster outreach to Americans through agency programs that assist Volunteers and 

returned Peace Corps Volunteers to help promote a better understanding of other peoples on the part of 

Americans 

Performance Management Framework

Performance Summary:

The agency achieved a high level of performance for this strategic goal, leading to raising the performance targets 

for some of the indicators in FY 2012, to encourage innovation.

Performance Goal 3.1.1: Performance Goal 3.1.2:

Volunteers share their in-country 

experiences with family, friends, and 

the American public

Increase returned Peace Corps 

Volunteers’ cultural outreach to the 

American public through

Peace Corps programs

Strategic Goal 3:

Foster outreach to Americans through agency programs that assist Volunteers and returned Peace 

Corps Volunteers to help promote a better understanding of other peoples on the part of Americans 

Outcome Goal 3.1:

Americans have increased awareness and knowledge of other cultures and global issues 

FY 2008 FY 2009 FY 2010 FY 2011

Target 75% 80% 85%

Result 93% 74% 68% 65%

50%

60%

70%

80%

90%

100%

Percentage of Volunteers reporting that 

their work helps promote a better 

understanding of Americans on the part

of the peoples served

Target Result

Performance Goal 3.1.1: Performance Goal 3.1.2:

Volunteers share their in-country 

experiences with family, friends, and 

the American public

Increase returned Peace Corps 

Volunteers’ cultural outreach to the 

American public through

Peace Corps programs

Strategic Goal 3:

Foster outreach to Americans through agency programs that assist Volunteers and returned Peace 

Corps Volunteers to help promote a better understanding of other peoples on the part of Americans 

Outcome Goal 3.1:

Americans have increased awareness and knowledge of other cultures and global issues 
The Peace Corps :: performance and accountability report :: fiscal year 2011 45

Performance Section

Outcome Goal 3.1: Americans have increased awareness and knowledge of other cultures and global 

issues 

Current and returned Volunteers participated in agency-initiated outreach activities in record numbers in 

FY 2011. The agency’s 50th anniversary provided a unique opportunity to engage the Peace Corps community 

in reaching out to the American public. Each year, Americans have more opportunities to learn about other cultures and global issues through Volunteers. Looking forward, the agency has committed to expanding its focus on 

this cross-cultural outreach by developing a new agencywide strategy, increasing resources, and developing other 

innovative programs.

Performance Indicator Summary

Performance Indicator FY 2009 

Target Met

FY 2010 

Target Met

FY 2011 

Target

Result Target 

Met

3.1.1.a Percentage of Volunteers 

participating in the Coverdell World 

Wise Schools Program

No Yes 64% 69% Yes

3.1.1.b Number of individuals and 

organizations supporting the Peace 

Corps Partnership Program

Yes Yes 9,000 12,079 Yes

3.1.1.c Number of youth-serving programs 

hosting Volunteer activities

Yes Yes 4,800 6,270 Yes

3.1.1.d Monitor the percentage of Volunteers 

who report sharing their experiences 

with family, friends, and the American 

public

N/A N/A Monitored 99% N/A

3.1.2.a Number of returned Peace Corps 

Volunteers participating in agencyinitiated activities

Yes Yes 8,600 18,792 Yes

3.1.2.b Number of schools impacted by the 

activities of returned Peace Corps 

Volunteers

No Yes 650 920 Yes 

Performance Goal 3.1.1: Volunteers share their in-country experiences with family, friends, and the 

American public

Indicator 3.1.1.a: Percentage of Volunteers participating in the Coverdell World Wise Schools Program

FY 2011 Target Result Target Met

64% 69% Yes

Rationale: The Coverdell World Wise Schools Program provides opportunities for American youth and teachers 

to learn about the customs and cultures of different countries through the experiences of Volunteers.

Discussion of Result: The target was met. The Coverdell World Wise Schools Program connects currently 

serving Volunteers with American classrooms through the Correspondence Match Program. This program also 
46 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

develops cross-cultural educational curriculum for classroom 

teachers to facilitate interaction between currently-serving Volunteers and students. To encourage Volunteer participation in 

the program in FY 2011, the agency developed an incentive program with overseas posts. The posts with the highest percentage 

of Volunteer participation in the program were formally recognized and were provided with special Peace Corps promotional 

materials. The agency also increased publicity about the program through a monthly newsletter, Peace Corps Update, which 

promotes all Goal Three and career/education initiatives to current and returned Peace Corps Volunteers. These new initiatives 

increased participation in the program, enabling the agency to 

exceed the performance target for a second consecutive year. 

Strengthening Future Performance: The measurement of this indicator will be improved beginning in FY 2012. 

Currently, the agency defines “participation” as Volunteer enrollment in the program. Moving forward, the agency 

will measure “active participation.” This shift will allow the indicator to measure the achievement of an outcome, 

rather than an output.

Data Source: Peace Corps Enterprise Database 

Indicator 3.1.1.b: Number of individuals and organizations supporting the Peace Corps Partnership 

Program

FY 2011 Target Result Target Met

9,000 12,079 Yes

Rationale: Individuals and organizations donating to a community-driven, Volunteer-developed Peace Corps 

Partnership Program project learn about host country communities and the issues they face. Donors build an 

understanding of different cultures and global development issues.

Discussion of Result: The target was met. The Peace Corps 

Partnership Program connects donors in the United States with 

Volunteers and their host communities overseas. Donors contribute to various types of projects initiated by communities and 

supported by Volunteers across the world. In FY 2011, 12,079 

donors to the program made 12,730 donations for a total of over 

$2.14 million. Notably, the number of Volunteer projects submitted under the Peace Corps Partnership Program increased from 

670 in FY 2010 to 822 in FY 2011. 

The 50th anniversary of Peace Corps provided a unique opportunity to introduce the Peace Corps Partnership Program to 

new audiences and expand the donor base. While the current 

economic climate presents fundraising challenges for many 

FY2008 FY2009 FY2010 FY2011

Target 60% 62% 64%

Result 60% 57% 63% 69%

50%

55%

60%

65%

70%

75%

80%

Percentage of Volunteers participating

in the Coverdell World Wise Schools

Program

Target Result

FY 2008 FY 2009 FY 2010 FY 2011

Target 8,000 8,500 9,000

Result 8,915 10,595 9,804 12,079

4,000

6,000

8,000

10,000

12,000

14,000

Number of individuals and organizations

supporting the Peace Corps Partnership 

Program

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 47

Performance Section

organizations, the agency expects to continue maintaining and expanding its donor base in the coming years due 

to the unique giving and cross-cultural opportunity offered by the program. 

Strengthening Future Performance: Due to the high level of performance over the last three years, the agency 

will increase the targets for future years to further drive performance. In addition, the agency is developing an 

industry-standard customer relationship management tool to more effectively and efficiently track donors and 

engage in targeted outreach. The tool will be operational in FY 2012. 

Data Source: Peace Corps Enterprise Database 

Indicator 3.1.1.c: Number of youth-serving programs hosting Volunteer activities

FY 2011 Target Result Target Met

4,800 6,270 Yes

Rationale: Youth-serving programs that host Volunteer activities expose American youth to other cultures 

through correspondence with Volunteers. Through this introduction to other cultures, American youth become 

interested in global affairs and learning more about people from different countries.

Discussion of Result: The target was met. Youth-serving programs, including schools, host Volunteer activities through the 

Coverdell World Wise Schools Program. In FY 2011, the agency 

increased the visibility of the program with teachers and schools 

by attending 13 professional educator conferences, including local school districts and content-specialized associations. 

Further, the agency continued developing rich and authentic 

cross-cultural curriculum for teachers in the program. The 

curriculum retains teachers in the program by providing them 

with free, accessible materials that offer innovative methods for 

teaching students about the world throughout the school year. 

Strengthening Future Performance: Through consistent performance improvement from FY 2009-2011, the optimal level of 

performance for this indicator has been reached. As a result, this indicator will not be measured in future years. 

Performance improvement in the Coverdell World Wise Schools Program is assured through the addition of 

a more rigorous indicator measuring the “active” participation of Volunteers in that program (see 3.1.1.a) in the 

Annual Performance Plan. 

Data Source: Peace Corps Enterprise Database 

Indicator 3.1.1.d: Monitor the percentage of Volunteers who report sharing their experiences with family, 

friends, and the American public

FY 2011 Target Result Target Met

N/A 99% N/A

FY 2008 FY 2009 FY 2010 FY 2011

Target 4,600 4,700 4,800

Result 4,500 4,700 5,265 6,270

4,000

4,500

5,000

5,500

6,000

6,500

Number of youth-serving programs

hosting Volunteer activities

Target Result
48 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Rationale: Family, friends, and the American public are exposed to different countries and cultures when Volunteers share their experiences. As a result, Americans build a better understanding of other people.

Discussion of Result: Currently, the agency monitors this 

indicator but does not set a target. At the beginning of the 

strategic plan, many forms of social media now available were 

relatively new and not formally endorsed by the agency. With 

increasing connectivity across the world, Volunteers are able to 

share their experiences more readily, utilizing a variety of new 

social media technologies. Eighty-eight percent of Volunteers 

shared their experience through electronic updates, and more 

than 53 percent of Volunteers educated Americans at home 

about life in their host countries through personal websites or 

blogs. In addition, six of every ten Volunteers shared their experiences and understanding of their host countries by hosting 

American visitors in their host community or host country.

Strengthening Future Performance: To encourage high achievement, specific performance targets will be set 

for future years. As Peace Corps continues to strengthen its social media presence, future reporting will also 

include Volunteer outreach through social media. 

Data Source: Annual Volunteer Survey 

Performance Goal 3.1.2: Increase returned Peace Corps Volunteers’ cultural outreach to the American 

public through Peace Corps programs

Indicator 3.1.2.a: Number of returned Peace Corps Volunteers participating in agency-initiated activities

FY 2011 Target Result Target Met

8,600 18,792 Yes

Rationale: When returned Peace Corps Volunteers participate 

in agency-initiated activities, they share their Peace Corps experiences with the American public, increasing awareness of other 

cultures and global issues.

Discussion of Result: The target was met. Returned Volunteers are energetic promoters of Peace Corps’ mission. The 

agency provides numerous opportunities for returned Volunteers to share their experiences, including online resources 

( http://w w w.peacecorps.gov/index.cfm?shell=resources.

returned). 

In FY 2011, Peace Corps’ 50th anniversary galvanized the 

returned Volunteer community across the world, resulting in a 

FY 2008 FY 2009 FY 2010 FY 2011

Target 0% 0% 0%

Result 97% 98% 99% 99%

60%

70%

80%

90%

100%

Monitor the percentage of Volunteers

who report sharing their experiences with 

family, friends, and the American public

Target Result

FY 2008 FY 2009 FY 2010 FY 2011

Target 7,700 8,300 8,600

Result 7,209 9,102 9,627 18,792

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Number of returned Peace Corps 

Volunteers participating in agencyinitiated activities

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 49

Performance Section

high level of participation in agency-initiated activities. The highlight was the 2011 Smithsonian Folklife Festival 

on the National Mall in Washington, D.C. which featured Peace Corps and drew an estimated one million participants, many of whom were returned Volunteers. Several other 50th anniversary events were organized by the 

National Peace Corps Association and by the agency domestically and abroad and featured returned Volunteers 

sharing their stories with the public. A recent returned Volunteer shared with participants in the International 

Visitors Leadership Program that social media has allowed Volunteers to stay in touch more frequently and to 

sustain longer-term relationships now with their community partners than previous Volunteers.

The newly-initiated online newsletter, Peace Corps Update, is emailed monthly to returned Volunteers and 

many articles feature ways they can become involved in outreach activities. In addition, the agency hosted eight 

regional conferences for returned Volunteers, providing tools to utilize in sharing their experiences with the public. Returned Volunteers also spoke in classrooms and to youth organizations and participated in Peace Corps 

recruitment events across the country. This allowed them to share their experiences with students, teachers, and 

Americans interested in serving as Volunteers. 

Strengthening Future Performance: Due to the high level of performance from FY 2009-2011, the agency will 

increase the targets for this indicator to encourage even greater participation from returned Volunteers. 

Data Source: Peace Corps Enterprise Database 

Indicator 3.1.2.b: Number of schools impacted by the activities of returned Peace Corps Volunteers

FY 2011 Target Result Target Met

650 920 Yes

Rationale: Through Peace Corps programs, youth, students, and faculty are exposed to different cultures and 

build a better understanding of global issues and other cultures.

Discussion of Result: The target was met. Returned Volunteers share their experiences with K-12 schools, colleges, and 

universities through the Coverdell World Wise Schools Speakers 

Match Program and the Coverdell Fellows Program.

In FY 2011, outreach to educators through professional conferences and the development of cross-cultural curriculum 

increased the number of schools participating in the Speakers 

Match Program, while fostering the active engagement of existing partners. 

The Coverdell Fellows Program is a graduate fellowship program 

that offers financial assistance to returned Volunteers. Through 

the program, returned Volunteers earn a graduate degree while 

completing an internship in an underserved American community. In the process, they share their Peace Corps 

experience with their colleagues and friends. In FY 2011, the agency approached several prospective partners and 

increased the number of Coverdell Fellows Program graduate schools from 55 to 72.

FY 2009 FY 2010 FY 2011

Target 550 600 650

Result 502 829 920

400

500

600

700

800

900

1,000

Number of schools impacted by the 

activities of returned Peace Corps 

Volunteers

Target Result
50 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Strengthening Future Performance: The agency will continue outreach to schools to encourage participation 

in the Speakers Match and Coverdell Fellows programs. Further, the agency will broaden the indicator definition 

to include the number of “educational institutions” where returned Volunteers engage in Third Goal activities to 

better capture the breadth of youth-serving and educational institutions where returned Volunteers share their 

experiences.

Data Source: Peace Corps Enterprise Database 

Strategic Goal 4: Provide Volunteers who represent the diversity of Americans to meet the evolving 

technical needs of host countries

Performance Management Framework

Performance Summary:

In FY 2011, the expansion and contraction of the Peace Corps in response to varying funding levels caused volatility 

in the Volunteer Delivery System (VDS), the agency’s system for requesting, recruiting, and selecting Volunteers. 

The systems that had been developed to respond to growing requests for Volunteers in FY 2010 and early FY 2011 

were adjusted later in the year in response to a reduction in anticipated resources. The agency was able to provide 

Volunteers to posts that met their technical needs and reflected the diversity of Americans; however, the changes 

in the numbers of Volunteers requested caused high levels of inefficiency in the VDS. 

Outcome Goal 4.1: Volunteers provided at every post meet the evolving technical needs of host countries

Progress was made in redesigning the VDS in order to improve its effectiveness and efficiency in the future. The 

new VDS includes the Database of Volunteer Experience (DOVE)—a state-of-the-art recruitment management 

system that will improve communication between Peace Corps and applicants throughout the entire Volunteer 

lifecycle, reducing the time that applicants must wait to be accepted and assigned to a country. The DOVE system will also enhance the process that posts follow to request Volunteers and that the agency follows to invite 

Outcome Goal 4.1: Outcome Goal 4.2:

Volunteers provided at every post 

meet the evolving technical needs of 

host countries

Trainees assigned to serve overseas 

represent the diversity if Americans

Performance Goal 4.1.1:

Recruit Volunteers who balance the 

needed manpower and technical 

needs at post with the available 

applicant pool and its skills

Performance Goal 4.1.2:

Manage Volunteer recruitment 

functions in an effective

and efficient manner

Performance Goal 4.2.1:

Recruitment and Volunteer

placement efforts reflect the

diversity of Americans

Strategic Goal 4:

Provide Volunteers who represent the diversity of Americans to meet the

evolving technical needs of host countries
The Peace Corps :: performance and accountability report :: fiscal year 2011 51

Performance Section

individuals to serve. The expected result is greater transparency and better management of applicant supply and 

demand—a critical system improvement.

Outcome Goal 4.2: Trainees assigned to serve overseas represent the diversity of Americans

The Peace Corps continues to prioritize the recruitment of under-represented groups to better reflect the face of 

America. While the recruitment and support of mid-career to age 50 and older applicants have been limited, the 

agency has made steady progress in attracting applicants from diverse ethnicities.

Performance Indicator Summary

Performance Indicator FY 2009 

Target Met

FY 2010 

Target Met

FY 2011 

Target

Result Target 

Met

4.1.1.a Maximize the number of Volunteers 

serving annually based on available 

funding and the provision of support to 

ensure their optimal effectiveness

Yes Yes 8,100 9,095 Yes

4.1.1.b Number of trainees and skills sought 

annually are met

Yes Yes 95% 96% Yes

4.1.2.a Redesign the Volunteer Delivery System 

and implement recommendations to 

improve its effectiveness 

Yes No 100% N/A No

4.1.2.b Reduce the response time to applicants No No 80 days 172 

days

No

4.2.1.a Number of mid-career to age 50 and 

older applicants

Yes No 1,900 1,361 No

4.2.1.b Number of applicants of diverse 

ethnicities

Yes Yes 2,300 2,912 Yes

Performance Goal 4.1.1: Recruit Volunteers who balance the needed manpower and technical needs at 

posts with the available applicant pool and its skills

Indicator 4.1.1.a: Maximize the number of Volunteers serving annually based on available funding and the 

provision of support to ensure their optimal effectiveness

FY 2011 Target Result Target Met

8,100 9,095 Yes

Rationale: Host country partners consistently request additional Volunteers to serve in their countries. Maximizing 

the number of Volunteers serving annually, while considering available funding and the agency’s ability to provide 

quality Volunteer support, allows the Peace Corps to better meet host countries’ manpower and technical needs. 

Discussion of Result: The target was met. At the end of FY 2011, 9,095 Volunteers were serving in posts across 

the world. Following the recommendations of the growth task force in FY 2010, the agency expanded programs and 

developed infrastructure to support higher numbers of Volunteers. While the scope of growth was scaled back in 
52 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

FY 2011 in response to an unanticipated reduction in resources, 

the increased trainee inputs in FY 2010 and early FY 2011 will 

continue to produce a high number of Volunteers until they finish their normal tour of service. The agency is committed to 

providing a high level of support to the historic high number of 

Volunteers serving around the world.

Strengthening Future Performance: The number of Volunteers serving annually is largely based on Peace Corps’ annual 

appropriation. Given the uncertain budgetary climate, the 

agency has minimal control over improving performance on 

this indicator. In the future, additional indicators will be utilized to focus the agency on balancing the needed manpower and 

technical needs at posts with the available applicant pool. Such 

indicators will also measure appropriate support to Volunteers, including adequate site selection and preparation, 

training improvements, and provisions to ensure the health, safety, and security of Volunteers.

Data Source: Peace Corps Enterprise Database 

Indicator 4.1.1.b: Number of Trainees and skills sought annually are met

FY 2011 Target Result Target Met

95% 96% Yes

Rationale: The indicator measures both the quantity and type of trainees provided to overseas posts to ensure 

their technical needs are met.

Discussion of Result: The target was met. The agency 

responded to an anticipated increase in Peace Corps’ budget and 

an emphasis on quality growth with increased trainee requests 

in FY 2010 and the beginning of FY 2011. Strategic recruitment 

campaigns resulted in a high number of qualified applicants 

for assignments departing for host countries in FY 2011. When 

trainee requests were reduced in mid- to late-FY 2011 as a result 

of reduced funding, the supply of applicants for FY 2011 assignments far exceeded the demand for trainees in most assignment 

areas. The trainees and skills sought by posts were met in this 

performance year; however, the process of increasing and 

decreasing trainee requests caused shifts in recruitment campaigns, resulting in a high level of inefficiency in meeting the 

skill needs of posts. The drop in applications during the second 

half of FY 2011 was the result of reduced recruitment resources. Unless the trainee request process is normalized 

through a consistent funding level and recruitment resources are restored, the agency will face challenges in meeting this indicator in future years.

FY 2008 FY 2009 FY 2010 FY 2011

Target 7,300 7,600 8,100

Result 7,876 7,671 8,655 9,095

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

Maximize the number of Volunteers

serving annually based on available 

funding and the provision of support to 

ensure their optimal effectiveness

Target Result

FY 2009 FY 2010 FY 2011

Target 95% 95% 95%

Result 96% 97% 96%

70%

80%

90%

100%

Number of Trainees and skills sought

annually are met

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 53

Performance Section

Strengthening Future Performance: This indicator is effective in measuring trainee supply; however, an additional indicator has been developed to set targets for trainee demand. A new indicator for FY 2012 will set trainee 

demand targets to efficiently and effectively balance trainee supply and demand. 

Data Source: Peace Corps Enterprise Database 

Performance Goal 4.1.2: Manage Volunteer recruitment functions in an effective and efficient manner

Indicator 4.1.2.a: Redesign the Volunteer Delivery System and implement recommendations to improve its 

effectiveness

FY 2011 Target Result Target Met

100% N/A No

Rationale: The indicator measures the implementation of the VDS process recommendations. When the implementation is completed, the efficiency and effectiveness of Volunteer request, recruitment, and selection functions 

will be improved.

Discussion of Result: The target was not met. This indicator prioritizes the redesign of VDS processes and 

ensures recommendations are implemented. Potential process changes were initially identified in FY 2008 and 

culminated in the creation of the VDS redesign project—a major change in technology and business processes 

designed to build a state-of-the-art recruitment and placement management system. As the project moves forward, some initial recommendations for VDS process changes are no longer relevant to the VDS project and the 

needs of the agency. Therefore, the indicator no longer measures the performance of the project. However, significant progress was made in FY 2011 on the VDS redesign project.

The contract for the redesign of VDS was awarded in the fourth quarter of 2010; in FY 2011, the Peace Corps 

Response application was developed. The application for Peace Corps Volunteers is currently undergoing user 

acceptance testing and will be production ready in early FY 2012.

The agency has awarded contracts for organizational implementation and technical training for staff on the operation of the new system. 

Strengthening Future Performance: As the VDS redesign project nears completion, a new indicator will track 

the effectiveness and efficiency of Volunteer recruitment functions.

Indicator 4.1.2.b: Reduce the response time to applicants

FY 2011 Target Result Target Met

80 days 172 days No

Rationale: Responding to applicants quickly at all stages of the VDS ensures effectiveness by improving retention 

of applicants and efficiency by reducing congestion in the system.
54 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Discussion of Result: The target was not met. This indicator measures the average number of days applicants wait for 

disposition from Peace Corps in the recruitment, medical, and 

placement review process. As noted last year, faulty methodology was used in originally setting the baseline targets for this 

indicator, resulting in overly aggressive targets based on poor 

data quality. Thus, the targets have not been met. Agency departments responsible for the recruitment, medical, and placement 

process set operational targets through improved reporting 

tools to reduce the response time to applicants. However, midyear changes in the number of Volunteers requested by posts 

resulted in applicants waiting longer for their assignments. 

Strengthening Future Performance: The baseline for future 

years will be established using an improved methodology. Additionally, the redesign of VDS through the DOVE 

project will streamline recruitment, medical, and placement review processes to reduce wait time and improve 

communication with applicants.

Data Source: Peace Corps Enterprise Database 

Performance Goal 4.2.1: Recruitment and Volunteer placement efforts reflect the diversity of Americans

Indicator 4.2.1.a: Number of mid-career to age 50 and older applicants

FY 2011 Target Result Target Met

1,900 1,361 No

Rationale: The majority of Peace Corps applicants are recent college graduates with limited professional experience. Increasing applications from mid-career to age 50 and older individuals will provide posts with Volunteers 

with more professional experience and better represent the diversity of America.

Discussion of Result: The target was not met. In FY 2011, 

1,361 mid-career to age 50 and older individuals applied for Peace 

Corps service, 11 percent of all applicants. Mid-career to age 50 

and older applicants have different needs than the majority of 

Peace Corps applicants and require specialized recruitment 

and retention efforts. At the time this indicator was developed, 

recruitment of mid-career to age 50 and older individuals was a 

high priority. A reduction in resources and shifting agency priorities resulted in less attention being devoted to this initiative 

in FY 2011 than had been the case in previous years. 

At the same time, in FY 2011, agency staff members took part in 

several conferences in order to attract mid-career professionals with specialized skills, including agriculture, forestry, and 

FY 2008 FY 2009 FY 2010 FY 2011

Target 100 90 80

Result 117 123 193 172

- 

50

100

150

200

250

Reduce the response time to applicants

Target Result

FY 2009 FY 2010 FY 2011

Target 1,500 1,700 1,900

Result 2,041 1,668 1,361

- 

500

1,000

1,500

2,000

2,500

Number of mid-career to age 50 and older 

applicants

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 55

Performance Section

Teachers of English to Speakers of Other Languages. The agency also signed a Memorandum of Understanding 

with AARP and participated in their annual conference in order to increase Peace Corps’ exposure to potential 

applicants age 50 and older.

Strengthening Future Performance: To account for fluctuating application numbers, the measure for this indicator will change to a percentage rather than an absolute number in future reports. This measurement change will 

provide the agency with more accurate performance data to inform decision making. The agency will also explore 

additional cost-effective methods for providing the unique support required for mid-career and age 50 and older 

applicants.

Data Source: Peace Corps Enterprise Database 

Indicator 4.2.1.b: Number of applicants of diverse ethnicities

FY 2011 Target Result Target Met

2,300 2,912 Yes

Rationale: When more Volunteers of diverse ethnic backgrounds serve in Peace Corps, the agency more accurately reflects the diversity of America.

Discussion of Result: The target was met. The number of 

applicants of diverse ethnicities applying for Peace Corps service 

was 2,912—24 percent of all applicants. The agency continues to 

aggressively recruit individuals of diverse ethnicities. In FY 2011, 

the agency signed an additional Memorandum of Understanding with a minority educational institution and strengthened 

relationships with eight existing partners to increase awareness of Peace Corps among diverse populations. The agency also 

increased Masters International’s presence in Historically Black 

Colleges and Universities and Hispanic Serving Institutions and 

developed strategic recruitment contracts with these institutions including Morehouse College, Clark-Atlanta University, 

Spellman College, and Howard University. Diversity recruitment staff members at headquarters and the nine regional recruitment offices continue to develop innovative 

strategies for recruiting diverse individuals.

While the target for applicants of diverse ethnicities is consistently met, the retention of diverse applicants from 

application to Volunteer enter-on-duty remains a challenge and will require a more hands-on approach to communicate and support these applicants.

FY 2009 FY 2010 FY 2011

Target 2,100 2,200 2,300

Result 3,070 2,992 2,912

- 

500

1,000

1,500

2,000

2,500

3,000

3,500

Number of applicants of diverse 

ethnicities

Target Result

The oldest serving Volunteer at age 86 completed her service in Morocco earlier this year. 

Today the oldest serving Volunteer is an 84-year old man serving in Botswana. 
56 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Strengthening Future Performance: To account for fluctuating application numbers, the measure for this indicator will change to a percentage rather than an absolute number in future reports. To address the challenge of 

retaining applicants of diverse ethnicities, a new applicant retention indicator will be utilized to set targets for 

overall retention.

Data Source: Peace Corps Enterprise Database 

Strategic Goal 5: Implement the Peace Corps mission in an effective and efficient manner through the 

provision of high quality Volunteer support with optimal health care, safety and security support, and 

effective management of resources

Performance Management Framework

Performance Summary:

The agency met the performance indicators for the provision of health care and met almost all of the indicators 

for management effectiveness. In the area of safety and security, the Peace Corps did not meet several of the performance targets. Nevertheless, the agency took decisive steps to institute critical reforms and new policies and 

practices to protect Volunteers. 

Outcome Goal 5.1: Outcome Goal 5.2:

Volunteers are safe, healthy, and well 

supported to ensure their focus on 

Peace Corps’ sustainable development and cross-cultural mission

The Peace Corps continually improves 

its staff and critical work processes 

and manages its resources in an 

effective and efficient manner

Performance

Goal 5.1.1:

Enhance the safety 

and security of 

Volunteers

Performance

Goal 5.1.2:

Provide quality medical 

and mental health 

services to trainees

and Volunteers

Performance Goal 5.2.1:

Provide effective and responsive financial 

management that accurately reflects domestic

and overseas operations

Strategic Goal 5:

Implement the Peace Corps mission in an effective and efficient manner through the

provision of high quality Volunteer support with optimal health care, safety and

security support, and effective management of resources 

Performance Goal 5.2.2:

Ensure the effective management

of Peace Corps resources

Performance Goal 5.2.3:

Ensure optimal performance

of critical Peace Corps processes
The Peace Corps :: performance and accountability report :: fiscal year 2011 57

Performance Section

Outcome Goal 5.1: Volunteers are safe, healthy, and well supported to ensure their focus on Peace Corps’ 

sustainable development and cross-cultural mission

The security risks associated with being a Volunteer have changed dramatically since the inception of the Peace 

Corps and the agency’s policies and practices continued to evolve in FY 2011 to adjust to these shifts. The agency 

has implemented most of the recommendations of the Inspector General for improving Volunteer safety and security. In addition, the agency’s guidelines for responding to victims of rape and sexual assault were revised, new 

training was implemented, and the agency’s first Victim Advocate was hired. These reforms reflect the agency’s 

emphasis on a victim-centered approach whenever a Volunteer is a victim of sexual assault or when there are other 

safety and security incidents. 

Significant reforms to the way in which health services are provided to Volunteers continued to be implemented 

this year. Among other actions, the agency established a health care Quality Assurance Council to oversee the 

delivery of medical and mental health services to Volunteers. 

Outcome Goal 5.2: The Peace Corps continually improves its staff and critical work processes and 

manages its resources in an effective and efficient manner

This fiscal year the agency implemented several operational reforms recommended by the Comprehensive 

Agency Assessment. A country portfolio review process was conducted to better inform decisions by headquarters on allocating resources to each post. As a result, key stakeholders collaborated to make informed resource 

allocation decisions. All the agency’s operating units have documented practices in three major areas of resource 

management.

Performance Indicator Summary

Performance Indicator FY 2009 

Target 

Met

FY 2010 

Target 

Met

FY 2011 

Target

Result Target 

Met

5.1.1.a Percentage of Volunteers reporting that their 

safety and security training is adequate or 

better

Yes Yes 95% 95% Yes

5.1.1.b Percentage of posts having their safety and 

security plans reviewed annually by Peace 

Corps safety and security officers

No Yes 33% 28% No

5.1.1.c Percentage of posts that implement critical 

recommendations focused on Volunteer/

trainee safety and security on a timely basis

No No 100% 79% No

5.1.1.d Percentage of Volunteers reporting they feel 

“usually safe” or “very safe” where they live 

and work

No No 90% 79% No

5.1.2.a Percentage of Volunteers rating their 

satisfaction with health care received from 

Peace Corps medical officers as adequate or 

better

Yes Yes 90% 93% Yes
58 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

5.1.2.b Percentage of Volunteers reporting the 

emotional support they received from Peace 

Corps staff as adequate or better

Yes Yes 80% 80% Yes

5.1.2.c Percentage of Volunteers reporting adequate 

or better support in coping with stress issues 

such as food insecurity, HIV/AIDS and other 

stressors in their community

Yes Yes 70% 74% Yes

5.2.1.a Percentage of posts and headquarters 

offices managing resources within approved 

budgets and operational plans

No No 95% 85% No

5.2.1.b Percentage of posts and headquarters offices 

annually reviewing resource management 

ratios for improvement

No No 95% 100% Yes

5.2.2.a Percentage of post projects engaging host 

country officials in their formulation and 

implementation

No Yes 95% 96% Yes

5.2.2.b Percentage of posts and headquarters offices 

with documented personnel practices that 

include staff development, performance 

management, and awards and recognition 

policies

No No 90% 100% Yes

5.2.3.a Annually review, streamline, and implement 

improvements to at least one agency critical 

work process

Yes Yes Y/N Achieved Yes

Performance Goal 5.1.1: Enhance the safety and security of Volunteers

Indicator 5.1.1.a: Percentage of Volunteers reporting that their safety and security training is adequate or 

better

FY 2011 Target Result Target Met

95% 95% Yes

Rationale: Volunteers’ reporting their safety and security training as adequate or better indicates they are aware of cross-cultural 

issues related to personal safety, in-country risks and ways to mitigate those risks, and reporting procedures should a crime occur.

Discussion of Result: The target was met. Over the last three 

years, Volunteers have indicated high satisfaction with their 

safety and security training. 

In FY 2011, the agency rewrote the training program, making the information more relevant and up-to-date. The new 

training includes sessions on sexual assault awareness, risk 

reduction strategies, agency reporting and response protocols, 

FY 2008 FY 2009 FY 2010 FY 2011

Target 95% 95% 95%

Result 95% 96% 95% 95%

70%

80%

90%

100%

Percentage of Volunteers reporting that

their safety and security training is 

adequate or better

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 59

Performance Section

and bystander intervention. Staff training was completed in 2011 and all incoming Volunteers will receive the new 

training in 2012. 

Strengthening Future Performance: The agency revised this indicator for future performance. In order to 

ensure the highest quality training in the future, the Peace Corps will measure the percentage of Volunteers who 

report their safety and security training is effective or very effective, instead of the lesser standard of adequate or 

better. 

Data Source: Annual Volunteer Survey

Indicator 5.1.1.b: Percentage of posts having their safety and security plans reviewed annually by Peace 

Corps safety and security officers 

FY 2011 Target Result Target Met

33% 28% No

Rationale: Reviewing a post’s safety support plan ensures that Peace Corps staff are knowledgeable about the current safety conditions of the country and Peace Corps systems are implemented in accordance with agency policy.

Discussion of Result: The target was not met. Regional Peace 

Corps safety and security officers reviewed the safety and security plans at 19 posts in FY 2011, representing 28 percent of posts. 

Agency policy describes the basic components of the Volunteer 

safety support system that each overseas post is required to 

maintain including: site selection, preparation and monitoring; 

incident management; training; and emergency planning and 

communication. The complete review of a post’s plan involves 

multiple activities, not all of which can be completed in a single 

visit. Some posts only received a partial review of their safety and 

security plans; as a result, the indicator was not met. However, 

final review activities are scheduled for FY 2012 to complete the 

reviews. 

Strengthening Future Performance: A revised indicator will measure the entire safety and security system at 

a post, rather than just the safety and security plan. By refocusing the indicator on the system, safety and security 

officers will review a broader scope of post activities and the effectiveness of their implementation related to Volunteer safety.

Data Source: Office of Safety and Security

Indicator 5.1.1.c: Percentage of posts that implement critical recommendations focused on Volunteer/

trainee safety and security on a timely basis

FY 2011 Target Result Target Met

100% 79% No

FY 2009 FY 2010 FY 2011

Target 33% 33% 33%

Result 21% 33% 28%

0%

10%

20%

30%

40%

Percentage of posts having their safety 

and security plans reviewed annually by 

Peace Corps safety and security officers

Target Result
60 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Rationale: Following the review of a post’s safety and security systems, it is essential that posts implement the 

critical recommendations generated from the review in order to protect the Volunteers. 

Discussion of Result: The target was not met. The review 

of safety and security plans generated 105 recommendations 

at 19 posts; 79 percent of posts implemented all of the critical recommendations due this year. Some posts reported that 

implementation was taking longer than the allotted time due to 

in-country conditions. In other cases, posts will implement the 

recommendations once they receive additional funding. In addition, a few posts recently hired safety and security coordinators 

(the key staff person responsible for implementing the recommendations) to fill vacated positions.

This year Peace Corps recognized methodological errors in the 

calculation of the data for this indicator in FY 2009 and FY 2010. 

In FY 2009, the agency reported the percentage of critical recommendations implemented, not the percentage of posts that implemented the critical recommendations. For 

FY 2010, the agency reported all recommendations, not solely those due in FY 2010.

As a result, the agency revised the percentages reported in FY 2009 and 2010. In FY 2009, 65 percent of posts 

implemented the critical recommendations due that fiscal year. In FY 2010, 59 percent of posts implemented the 

critical recommendations due that fiscal year. 

Strengthening Future Performance: For FY 2012, this indicator has been revised to measure the percentage 

of all critical recommendations marked for implementation in a specific fiscal year, rather than the percentage 

of posts implementing them. The timely implementation of critical recommendations is a high priority for the 

agency. 

Data Source: Office of Safety and Security and overseas posts

Indicator 5.1.1.d: Percentage of Volunteers reporting they feel “usually safe” or “very safe” where they 

live and work

FY 2011 Target Result Target Met

90% 79% No

Rationale: Volunteers reporting that they feel safe where they live and work demonstrates appropriate site development, adherence to agency policies, and satisfactory safety and security training.

Discussion of Result: The target was not met. Volunteers’ sense of personal security remained constant over 

the past three years, but dropped this year to 79 percent. Volunteers’ perception of their own safety at home and 

work is based on several factors such as site development, safety and security training, the acquisition of language 

skills, and integration into local communities. 

FY2009 FY2010 FY2011

Target 100% 100% 100%

Result 65% 59% 79%

50%

60%

70%

80%

90%

100%

Percentage of posts that implement

critical recommendations focused on

Volunteer/trainee safety and security on

a timely basis

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 61

Performance Section

This year the agency made significant improvements in how 

posts implement these aspects of Volunteer service, such as 

improved standard operating procedures for many critical elements of safety and security and standardized training for staff 

and Volunteers. 

The agency is responsible for adequately selecting and preparing 

Volunteer sites to ensure that there is a job, a work counterpart, 

and a community that wants to work with a Volunteer to promote 

their development objectives. The agency is also responsible for 

training Volunteers and equipping them with the skills to enable 

them to integrate into the community and develop respectful 

relationships. 

However, Volunteer perceptions of personal safety are also based on events outside the control of the Peace Corps. 

These factors include civil strife within the host country as well as global events and activities in the United States. 

Throughout the year, significant media attention was given to safety and security concerns within the agency 

and two Volunteer homicides within the last 30 months. While other Volunteers were not at increased risk due to 

either of these factors, these events may have increased Volunteers’ perception of insecurity. One potentially positive result of the increased public attention to safety and security is that some Volunteers who might otherwise 

have been complacent about this issue in the past may be more alert to any potential risks.

Strengthening Future Performance: This indicator has been revised to raise the performance level. The indicator will measure the percentage of Volunteers who report they feel “more than adequately safe” or “very safe” 

where they live and work. 

Data Source: Annual Volunteer Survey

Performance Goal 5.1.2: Provide quality medical and mental health services to trainees and Volunteers

Indicator 5.1.2.a: Percentage of Volunteers rating their satisfaction with health care received from Peace 

Corps medical officers as adequate or better

FY 2011 Target Result Target Met

90% 93% Yes

Rationale: Volunteers reporting on their satisfaction with the health care they receive from Peace Corps medical 

officers is one important measure of the quality of medical and mental health care being provided by the Peace 

Corps.

Discussion of Result: The target was met. Peace Corps medical officers are the primary caregivers of medical 

and mental health services to Volunteers. The high level of Volunteer satisfaction with medical officers is a result 

of the agency’s sustained focus on maintaining an up-to-date high quality of medical services. The agency implemented several strategies in FY 2011 to enhance Volunteer medical support, including:

FY 2008 FY 2009 FY 2010 FY 2011

Target 90% 90% 90%

Result 87% 89% 89% 79%

50%

60%

70%

80%

90%

100%

Percentage of Volunteers reporting they 

feel "usually safe" or "very safe" where

they live and work

Target Result
62 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

•	 Establishment of the health care Quality Assurance 

Council comprised of agency leaders and co-chaired by the 

Director and Deputy Director

•	 Improvement in the hiring, training, and evaluation 

process for medical officers

•	 Enhanced clinical oversight of medical officers

•	 Implementation of an email box so Volunteers can 

email quality improvement nurses based at Peace Corps 

headquarters if they have concerns with their health care. 

Concerns are investigated and steps are taken to resolve 

issues.

•	 Completion of cost-benefit analyses to determine the most 

effective methods to deliver health care to Volunteers

Each agency unit responsible for providing health care support to Volunteers is held accountable by performance 

indicators designed to improve health care delivery. Progress is reviewed at monthly meetings and actions are 

identified to address the issues. 

Strengthening Future Performance: The agency will continue to improve medical and mental health services to 

trainees and Volunteers under the guidance of the Quality Assurance Council.

Data Source: Annual Volunteer Survey 

Indicator 5.1.2.b: Percentage of Volunteers reporting the emotional support they received from Peace 

Corps staff as adequate or better

FY 2011 Target Result Target Met

80% 80% Yes

Rationale: A high level of satisfaction indicates quality mental health services are being provided to Volunteers.

Discussion of Result: The target was met. All agency staff 

members are responsible for providing emotional support to 

Volunteers, including country directors, program managers, 

and medical officers. Volunteers consistently rate the emotional 

support received from staff as adequate or better. The agency 

continues to drive performance in this area by improving the curriculum for staff training. Medical officers are trained through 

continuing medical education sessions and medical overseas staff 

training on how to work with and provide support for Volunteers 

from diverse backgrounds and with different personalities.

The agency sends headquarters-based counselors to posts when 

major events require additional Volunteer support. Specialized 

FY 2008 FY 2009 FY 2010 FY 2011

Target 90% 90% 90%

Result 92% 93% 93% 93%

50%

60%

70%

80%

90%

100%

Percentage of Volunteers rating their 

satisfaction with health care received 

from Peace Corps medical officers as 

adequate or better

Target Result

FY 2008 FY 2009 FY 2010 FY 2011

Target 70% 75% 80%

Result 80% 81% 81% 80%

50%

60%

70%

80%

90%

Percentage of Volunteers reporting the 

emotional support they received from

Peace Corps staff as adequate or better

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 63

Performance Section

support is provided by the agency’s Victim Advocate, a new position created in FY 2011 to support Volunteers who 

are victims of crime.

Volunteers also provide emotional support for their peers through agency-initiated peer support networks.

Strengthening Future Performance: In FY 2012, training on providing emotional support to Volunteers will be 

expanded to country directors, program managers, and other key staff at post.

Data Source: Annual Volunteer Survey

Indicator 5.1.2.c: Percentage of Volunteers reporting adequate or better support in coping with stress 

issues such as food insecurity, HIV/AIDS and other stressors in their community

FY 2011 Target Result Target Met

70% 74% Yes

Rationale: Peace Corps Volunteers reporting they receive support in coping with the stresses encountered during 

Peace Corps service indicates that Peace Corps staff is providing quality medical and mental health care.

Discussion of Result: The target was met. Volunteers encounter 

several stressors while living and working in their communities. The agency has met this indicator for the last few years by 

providing direct support to Volunteers having difficulty dealing 

with stressors. This role is fulfilled by medical officers and counseling staff and by training Volunteers on appropriate coping 

mechanisms at pre-service and in-service trainings. 

The agency has improved the direct support it provides by: 

•	 Locating accredited mental health consultants in host 

countries to provide direct counseling support in the field

•	 Including more sexual assault content in medical officer 

continuing medical education sessions 

•	 Improving the site evaluation process by properly screening 

a site for major stressors and preparing the community for the joint responsibilities of hosting a Volunteer

•	 Identifying countries where individuals with mental health conditions can be best supported by analyzing 

the stressors and the support and facilities available in each country 

Strengthening Future Performance: For future performance, this indicator will capture Volunteer responses 

regarding coping with a larger group of stressors, including the stress of living and working in their communities. 

FY 2008 FY 2009 FY 2010 FY 2011

Target 60% 65% 70%

Result 53% 73% 74% 74%

50%

60%

70%

80%

Percentage of Volunteers reporting 

adequate or better support in coping with 

stress issues such as food insecurity, 

HIV/AIDS and other stressors in their 

community

Target Result

The Department of State’s International Visitors Leaders Program partnered with the Peace 

Corps in September 2011 to honor outstanding participants from 51 Peace Corps countries by 

inviting those 51 outstanding leaders to the United States and Peace Corps Headquarters.
64 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Stressors like working with counterparts and harassment consistently rank higher than food insecurity and HIV/

AIDS stress. Expanding the indicator to include all stress associated with the Volunteer experience will provide a 

more robust view of the support provided by the agency. The Annual Volunteer Survey also provides responses on 

individual stressors.

Data Source: Annual Volunteer Survey

Performance Goal 5.2.1: Provide effective and responsive financial management that accurately reflects 

domestic and overseas operations

Indicator 5.2.1.a: Percentage of posts and headquarters offices managing resources within approved 

budgets and operational plans

FY 2011 Target Result Target Met

95% 85% No

Rationale: By managing financial resources within approved budgets and operational plans, the Peace Corps 

demonstrates effective financial management.

Discussion of Result: The target was not met. In FY 2011, the 

agency did not initially anticipate as constrained a fiscal environment as it experienced once the final appropriation passed. 

At that point, agency leadership worked with headquarters 

offices and posts to adjust their operating plans accordingly. The 

agency was ultimately appropriated a budget that was almost 

$26 million lower than FY 2010, a dramatic shift from the prior 

fiscal year’s increase of $60 million. Additionally, FY 2011 funds 

were appropriated seven months into the fiscal year, requiring 

posts and offices to again adjust their operating plans within the 

remaining five-month timeframe. 

Strengthening Future Performance: Agency leadership will 

work with regions, posts, and domestic offices to identify planned 

reductions or additions to the appropriated budget as early in the fiscal year as possible, thereby mitigating fluctuating adjustments to operating plans. 

Data Source: Peace Corps Enterprise Database

Indicator 5.2.1.b: Percentage of posts and headquarters offices annually reviewing resource management 

ratios for improvement

FY 2011 Target Result Target Met

95% 100% Yes

FY 2009 FY 2010 FY 2011

Target 95% 95% 95%

Result 83% 84% 85%

50%

60%

70%

80%

90%

100%

Percentage of posts and headquarters

offices managing resources within 

approved budgets and operational plans

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 65

Performance Section

Rationale: Annual reviews of resource management ratios demonstrate a focus on effective and accurate financial 

management. 

Discussion of Result: The target was met. The indicator has 

been fully implemented. Resource management ratios for each 

post and headquarters office have been built into the agency’s 

new financial resource management software. Development 

and review of the management resource ratios are now standard 

operating procedure through the financial management software.

Strengthening Future Performance: In light of this achievement, the agency will no longer measure this indicator. A new 

indicator will measure the degree to which the tasks and activities funded by the agency are those that support achievement of 

the agency’s mission through the Integrated Planning and Budget System.

Data Source: Peace Corps Enterprise Database 

Performance Goal 5.2.2: Ensure the effective management of Peace Corps resources

Indicator 5.2.2.a: Percentage of post projects engaging host country officials in their formulation and 

implementation

FY 2011 Target Result Target Met

95% 96% Yes

Rationale: Host country participation in the project design and implementation demonstrates a committed partnership between Peace Corps and the host country to work in areas that most meet the host country needs. 

Discussion of Result: The target was met. Nearly all posts 

(96 percent) engaged host country officials in formulating and 

implementing projects, signifying a strong and continuing collaboration to meet the technical needs of host countries. The 

agency first establishes this relationship with each host country by signing a Memorandum of Understanding prior to the 

entry of Volunteers. The most common strategies that posts 

employed to maintain this collaboration were national-level 

meetings and Project Advisory Committees, which engage host 

country partners with post staff and Volunteers to ensure dialogue throughout the life of a project. Several posts also held 

local or regional meetings in order to collect cross-sectional 

input, understand competing interests, and gain insight into the 

unique needs of different communities. 

FY 2009 FY 2010 FY 2011

Target 95% 95% 95%

Result 0% 71% 100%

0%

20%

40%

60%

80%

100%

Percentage of posts and headquarters

offices annually reviewing resource

management ratios for improvement

Target Result

FY 2008 FY 2009 FY 2010 FY 2011

Target 95% 95% 95%

Result 95% 94% 96% 96%

93%

94%

95%

96%

97%

Percentage of post projects engaging host

country officials in their formulation and 

implementation

Target Result
66 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Strengthening Future Performance: Due to consistently high performance in this area, this indicator will be 

replaced with a new indicator to focus on improving performance in the area of resource allocation. The management of financial and Volunteer resource allocations through a standardized country portfolio review process will 

contribute to ever more effective and better informed management of the agency’s limited resources.

Data Source: Overseas posts

Indicator 5.2.2.b: Percentage of posts and headquarters offices with documented personnel practices 

that include staff development, performance management, and awards and recognition policies

FY 2011 Target Result Target Met

90% 100% Yes

Rationale: The documentation of staff development policies, awards and recognition policies, and transparent 

personnel practices for post and headquarters staff demonstrate the agency’s ability to effectively manage its 

human capital.

Discussion of Result: The target was met. A significant 

achievement was reached this year as all operating units are now 

covered by standardized personnel practices.

The dramatic increase in performance on this indicator is due to 

the development of the Overseas Staff Handbook, which established personnel standards for all staff working at posts. This 

key achievement is the result of a concerted effort that began in 

the Strategic Plan Quarterly Performance Reviews and led to an 

important collaboration between Global Operations and Management Offices.

The agency also revised the policy on the incentive awards program. The policy details the agency’s program for providing 

monetary awards to high-performing employees. 

All of the agency’s operating units now have documented practices in three major areas of human resource management: staff development, performance management, and awards and recognition policies.

Strengthening Future Performance: Due to the significant progress achieved during FY 2011 in clarifying personnel policy for all headquarters and overseas staff, the agency will raise the performance level for this indicator. 

The new indicator will shift the agency’s focus from having written personnel policies to measuring the degree 

to which the policies are put into practice. The selected benchmarks for this indicator will center on transparent 

staffing policies and procedures, including new employee orientation at both the agency and post levels, and midyear and annual employee performance reviews for all post and headquarters staff.

Data Source: Headquarters offices

FY 2008 FY 2009 FY 2010 FY 2011

Target 70% 80% 90%

Result 43% 56% 61% 100%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage of posts and headquarters

offices with documented personnel

practices that include staff development, 

performance management, and awards

and recognition policies

Target Result
The Peace Corps :: performance and accountability report :: fiscal year 2011 67

Performance Section

Performance Goal 5.2.3: Ensure the optimal performance of critical Peace Corps processes

Indicator 5.2.3.a: Annually review, streamline, and implement improvements to at least one agency 

critical work process

FY 2011 Target Result Target Met

One critical 

process

Achieved Yes

Rationale: An annual review and improvement of a mission critical work process indicates that the agency regularly monitors itself to ensure optimal performance.

Discussion of Result: The target was met. The agency’s annual Integrated Planning and Budgeting System 

(IPBS) was redesigned as part of a performance improvement initiative undertaken in FY 2011. The IPBS process 

is the agency’s primary program and resource management planning mechanism. In response to post feedback 

and findings from the Comprehensive Agency Assessment, the agency redesigned the guidance that instructs 

headquarters offices and posts to strategically plan future operations and allocate resources based on current budget realities and agency initiatives.

In FY 2011, the agency issued its first IPBS pre-guidance to posts, which provided tools and suggested data sources 

for developing an IPBS submission. The revised guidance was more strategic in nature, sharpening the focus on 

critically analyzing and considering financial and programmatic improvements to post operations. The guidance 

to headquarters office was also redesigned. Each Peace Corps’ operating unit developed a strategic plan and logical 

framework model to construct its office’s three-year vision and to guide work activities. Finally, the IPBS review 

and feedback process was formalized to ensure transparency and interactivity among all stakeholders. 

Overall, the redesign of the IPBS process solidified the agency’s commitment to improving its programs by creating a mechanism for assessing effectiveness and efficiency at the post and office level. The process improvement 

allows the agency to carry out its planning and budget functions in a more strategic and participatory manner that 

stresses accountability at all levels.

Strengthening Future Performance: To strengthen the monitoring of this indicator in future years, the missioncritical process will be chosen prior to the completion of the Strategic Plan Quarterly Performance Review in the 

first quarter of the fiscal year. Offices identified as responsible entities will be responsible for the fiscal year scope 

of work and for reporting on its review and implementation progress.

Data Source: Office of Strategic Information, Research and Planning 
68 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Introduction

Evaluating Volunteer impact abroad and at home is a high priority for the agency. In FY 2011, the Peace Corps 

conducted evaluations at a variety of levels within the agency. The specific purposes of these evaluations varied, 

but they were similar in that they were designed to encourage data-driven decision making and the dissemination 

of best practices.

In FY 2011, the agency conducted the following evaluations: 

•	 Annual Country Portfolio Review 

•	 Annual Volunteer Survey

•	 Host Country Impact Studies 

•	 Headquarters and Post Program Evaluations 

•	 Program Evaluations by Office of Inspector General 

Annual Country Portfolio Review

The Peace Corps completed an inaugural Country Portfolio Review in the first quarter of FY 2011. The agency used 

the review to inform decisions about country phase-outs, as well as the allocation of Volunteers among regions and 

within each region. Data were collected in areas such as country needs, safety and security, and host country commitment and engagement.

The Country Portfolio Review responds to a recommendation in the FY 2010 Comprehensive Agency Assessment 

to “Target resources and country presence across countries according to specific country selection criteria to maximize grassroots development impact and strengthen relationships with the developing world.” The assessment 

recommended that the portfolio review take place prior to the start of the annual planning and budgeting cycle and 

be used to inform, in one integrated process, decisions on potential new country entries, possible country phaseouts, as well as the allocation of Volunteers.

This annual review has now been integrated into Peace Corps’ standard operating procedures. The agency’s 

Annual Performance Plan for FY 2012 includes a performance indicator linked to the review.

Annual Volunteer Survey 

The Annual Volunteer Survey (AVS) is the agency’s primary vehicle for ensuring that the voice of the Volunteer is 

heard at headquarters. The results help the agency assess progress toward its goals and identify needed improvements. The global response rate for the FY 2011 survey was a historically high 86 percent. 

The AVS asks Volunteers to assess the impact of their work; the effectiveness of their Peace Corps’ training, incountry staff support, and their personal health and safety; and their overall satisfaction with their Volunteer 

service. In FY 2011, the AVS included an expanded set of safety and security questions and new questions about 

the materials and activities that helped prepare Volunteers for service before they left home.

Program Evaluation

0
The Peace Corps :: performance and accountability report :: fiscal year 2011 69

Performance Section

Each year, the results of the survey provide the agency with critical insights into Volunteers’ views. Analysis of 

the results is used for multiple purposes, including identifying trends and best practices, as well as successful programs and areas for improvement. 

In FY 2011, the agency continued to expand the ways in which the information collected from the survey was disseminated to policymakers, program managers at headquarters and in the field, and to the Volunteers. A series 

of presentations on the FY 2010 survey findings emphasized the following key components of successful service:

1. Work that meets community needs

2. Well-prepared sites (locations where Volunteers live and work)

3. Productive relationships with host country counterparts

4. Targeted technical and language training

5. Feedback on Volunteers’ work reports

Improving these components of service supports the findings of the Comprehensive Agency Assessment as steps 

for strengthening Goal One.

Findings

Most Volunteers confirmed that their overall Peace Corps service was personally rewarding and that their training and support helped prepare them to stay safe, healthy, and actively engaged in their primary assignment and 

secondary project activities. Findings on key variables follow:

Overall Volunteer Satisfaction 

•	 72 percent of the Volunteers expressed overall satisfaction with their Peace Corps service.

•	 68 percent of the Volunteers found their experiences with host country individuals to be very rewarding.

Meeting the Challenges of Peace Corps Service

•	 Almost all (97 percent) of the Volunteers reported that they were adequately or better prepared to meet the 

challenges of Peace Corps Service.

•	 More than half (58 percent) of the Volunteers felt very integrated into their communities.

•	 About one in five Volunteers mentioned considerable stress as a result of the challenges associated with 

their primary assignments, their work with their host country counterparts/community partners, and the 

isolation/loneliness at their sites.

Actions Taken

Posts used the AVS results to identify needed program improvements, inform their annual planning process, and 

initiate a dialogue with Volunteers about how to ensure that Volunteers have a productive and rewarding service 

experience.
70 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Based on AVS trends over time, the Peace Corps developed a new performance indicator on Volunteers’ satisfaction with staff support for site selection and preparation in order to better monitor Volunteer feedback on whether 

the people in their community are prepared for and committed to working with Volunteers.

Host Country Impact Studies 

In FY 2011, the Peace Corps continued the series of Host Country Impact Studies initiated in FY 2008. These 

country-specific impact evaluations measure how effectively Volunteers’ activities are meeting two of the agency’s three goals: Goal One –“To help the people of interested countries in meeting their need for trained men and 

women,” and Goal Two –“To help promote a better understanding of Americans on the part of the peoples served.” 

The evaluations provide agency managers with an independent assessment of Peace Corps’ programs. The studies 

are conducted by teams of host-country researchers who interview local counterparts, host families, and beneficiaries who lived and worked with Volunteers. The interviewers ask host country individuals for their views on the 

changes that have occurred within their communities as a result of the work of Volunteers, as well as the degree 

to which local needs were met and changes were sustained. They also ask about host country individuals’ changes 

in opinion about Americans. This approach ensures that the information about the impact of Volunteers’ work is 

gathered from the most direct source: the individuals who worked and/or lived with Volunteers. 

Peace Corps’ cutting-edge program of Host Country Impact Studies is significantly enhancing the agency’s capacity to document its results for Goals One and Two. In just a short time, the impact studies have become an important 

tool that enhances the decision-making process used to allocate Volunteers and other resources within countries 

and they provide information from a previously untapped source to help make decisions. The impact evaluations 

have led to change in post administration of Volunteer training and program design. 

Findings 

The FY 2011 study in Cape Verde was completed. Additional FY 2011 studies in Ghana, El Salvador, and Paraguay 

are underway and will be finalized in FY 2012. In addition, six studies that started last year were completed in 

FY 2011 (Botswana, Fiji, Peru, the Philippines, Thailand, and Togo). 

A total of 3,083 local stakeholders have been interviewed since the studies were first launched, including 1,606 

host country individuals in the seven countries in which studies were completed during FY 2011. The studies confirm that those closest to Peace Corps’ work—local community members—believe Volunteers are accomplishing 

Goal One of the agency. 

Volunteers strengthened host country individuals’ technical capacity, according to 86 percent of the individuals 

interviewed in FY 2011. Seventy-seven percent of the host country respondents said they use new skills learned 

from the Volunteers daily or weekly in their work; 83 percent use the new skills daily or weekly in their personal 

lives.

Ninety-three percent attributed the positive changes and new skills capacity building to their daily interaction 

with the Volunteer and reported the changes were largely-to-completely sustained after the Volunteers left (70 
The Peace Corps :: performance and accountability report :: fiscal year 2011 71

Performance Section

percent). Ninety-three percent were satisfied with the Volunteers’ work and overwhelmingly want to work with a 

Volunteer again (97 percent). 

Teachers in the Philippines basic education program studied this year described the impact of working with Volunteers. The teachers had access to more classroom resources (96 percent), such as books and teaching aids, and 

witnessed increased confidence and greater competence in their students’ English speaking skills (96 percent). 

Volunteers introduced interactive, student-centered teaching methods and 87 percent of teachers participating in 

the project adopted these methods. 

Teachers reported they are not only using new teaching methods and feeling more confident in their work, but that 

they have adopted a new set of values in their personal lives, including better time management. Students reported 

that after working with a Volunteer, they wanted to “become somebody” and felt more motivated to study.

Impact of Volunteers on Goal One Indicators 

The studies also demonstrated that Volunteers are accomplishing Goal Two: improving understanding of Americans among the people in the countries where they work. Ninety percent of the people participating in the studies 

completed in FY 2011 reported gaining a more positive view of Americans after interacting with Volunteers. The 

sustained interaction between Volunteers and host country nationals led to significant gains in improved understanding (87 percent). 

Participants in the Philippines described how their opinions of Americans changed from viewing Americans as 

powerful military or colonial rulers to seeing them as hard-working, kind people who are not materialistic and 

who value family. Reasons listed for the increased positive opinions included: “the Volunteers’ demeanor and 

personality, being hard-working, friendly, and sociable [and] being willing to adapt to local Filipino culture.” 

Students’ responses indicated that their Volunteer’s attitude had changed their opinions. The students said the 

Volunteers were approachable, friendly and kind during and outside of class and, as a result, students reported 

they had learned that Americans are caring and non-judgmental.

0 20 40 60 80 100

Volunteers effectively built capacity (n=664)

Used skills daily/weekly at work (n=575)

Used skills daily/weekly outside work (n=697)

Daily interaction caused change (n=891)

Able to maintain change (n=764)

86%

77%

83%

93%

70%
72 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

Monitoring and Evaluation Training 

In FY 2011, the agency moved to strengthen its program evaluation capacity through an increased emphasis on monitoring and evaluation training for Volunteers, staff, and partners.

Posts

Ninety-one percent of the posts provided some training in monitoring and evaluation to Volunteers, primarily during their pre-service training. Fifty-six percent of posts provided monitoring and evaluation 

training to staff and 53 percent provided this training to counterparts or project partners. 

The training provided by posts to Volunteers, staff, and partners included sessions on the use and benefits 

of monitoring and evaluation (81 percent), how to collect data (76 percent), and how to use project indicators (75 percent). Other topics included how to report on findings (60 percent), collecting baseline data, and 

using participatory monitoring and evaluation techniques (50 percent each). In FY 2011, monitoring and 

evaluation training was a typical part of Project Design and Management workshops that many posts held 

for Volunteers and their community counterparts.

Volunteers are key to collecting project level information since they work with communities on a daily basis. 

They provide a significant portion of the project data used by managers at posts and headquarters to make 

decisions. In order to increase Volunteers’ ability to demonstrate the results of their work, the agency prepared a monitoring and evaluation training package for all Volunteers. This training supports the agency’s 

Focus In/Train Up strategy, a key recommendation of the 2010 Comprehensive Agency Assessment. The 

training courses were introduced at regional conferences and will be used by all posts in FY 2012. 

The training provides a standard curriculum that all posts will use to train Volunteers. The monitoring and 

evaluation training package builds the capacity of Volunteers to accurately measure and report the results 

of their work with community partners at the grassroots level. In addition, the training allows Peace Corps 

staff at posts and headquarters to have confidence in stating the impact of agency programs. 

Headquarters

Staff in five of the 23 headquarters offices attended monitoring and evaluation training during FY 2011. The 

training covered data collection methods, survey design, data analysis and data analysis software, and the 

principles of monitoring and evaluation. 

Program Evaluations Conducted by Posts

Peace Corps continually works to increase the effective use of evaluation at its posts. In FY 2011, posts participated in primarily two types of evaluations: project reviews and impact studies. 

Project reviews normally assess whether a project is operating as intended and if it is meeting community needs. 

These process evaluations are requested by the posts and conducted by headquarters technical staff and post staff 
The Peace Corps :: performance and accountability report :: fiscal year 2011 73

Performance Section

at the mid-point in the five-year project cycle. In FY 2011, a number of posts were asked to review their projects in 

anticipation of implementation of the comprehensive assessment’s recommendation to focus the agency’s efforts 

on a limited and targeted number of specific technical interventions. 

Impact studies provided an independent assessment of the agency’s programs to determine whether projects were 

meeting their intended outcomes.

Findings 

Fifty-one percent of posts (35) conducted project reviews in FY 2011 and most (31) were conducted by post staff. 

Headquarters staff assisted 16 posts with their reviews. They recommended revisions to project objectives and 

indicators to narrow the project’s focus and better target community needs or match Volunteers’ skills. In several 

cases, the project reviews recommended merging or eliminating projects. 

Sixteen percent of posts (11) conducted an impact study. Seven posts participated in the Host Country Impact 

Studies and four posts (China, Ecuador, Georgia, and Guatemala) conducted their own impact evaluations. The 

majority of posts found that their projects met their project goals.

Actions Taken

Posts used the findings of these evaluations to: 

•	 Revise project objectives and indicators to better meet the needs of communities

•	 Reduce or merge projects to focus activities in core areas

•	 Improve site selection and partner training

•	 Improve project processes such as information sharing among partners

•	 Revise technical and cross-cultural training for Volunteers 

•	 Bring projects more in-line with host country national priorities

Program Evaluations Conducted by Headquarters Offices

Peace Corps operations serve a single program objective: to provide trained Volunteers to host countries to promote its mission of world peace and friendship. Most headquarters’ offices provide support to the Volunteers and 

field offices or conduct essential government functions. As a result, headquarters’ offices tend to conduct process 

and cost benefit analysis evaluations more than programmatic evaluations. Management assessments of headquarters’ offices are also conducted and are not included as program evaluations.

Findings 

Eight headquarters offices conducted process evaluations during FY 2011. These evaluations examined the clinical 

accommodation and medical evacuation procedures, headquarters’ support to one of the regions, the organizational structure of the country desks in a region, diversity in hiring, and a grants program to Volunteers. 

•	 Medical Accommodations Designation: determined the type of medical accommodations each post is able to 

provide to Volunteers in order to streamline the new Volunteer Delivery System 
74 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

•	 Medical Evacuation Process: found ways to improve transition of medical evacuations between the field, 

Washington, D.C., and the Volunteer’s home

•	 Assessment of Support from Region: found gaps in support to posts within this region

•	 Organizational Assessment of Region: found that better use of resources and support could be provided to 

posts by reorganizing the country desk units

•	 Cost Benefit Analysis of Medical Records Contract: found that contracting out the records management was 

not cost-effective

•	 Cost Benefit Analysis of Federal Employees Compensation Act (FECA) Case Management Program: found 

that the program reduced the cost of care and overpayments by over $2 million dollars

•	 Cost Benefit Analysis of Malaria Prophylaxis: found Mefloquine remains the most cost-effective suppressive 

therapy for malaria after examining all recommended suppressive therapies 

•	 EEO Compliance Report: showed that Peace Corps does not have policies, practices or procedures that 

create significant barriers to workplace diversity; however, the five-year limit for staff employment at Peace 

Corps limits the agency’s ability to provide career status to new federal employees 

•	 Small Project Assistance Grants Program: the evaluation uncovered inconsistencies in how the program 

is run across posts and several challenges in implementing the program; the challenges include complex 

paperwork and lack of funds for monitoring and evaluating the projects funded by the grant 

Actions Taken

•	 Medical Accommodations Designation: recommendations made to include comprehensive data on medical 

accommodation capacity of posts in the new Volunteer Delivery System 

•	 Medical Evacuation Process: recommendations received and implementation plan developed that will create 

a more customer-driven process

•	 Assessment of Support from Region: the region implemented a plan to close the gaps in support; a further 

assessment of the implemented resolutions showed improvement in support

•	 Organizational Assessment of Region: responsibilities of the country desk unit were redistributed, and 

recruitment and training of new staff was initiated

•	 Cost Benefit Analysis of Medical Records Contract: contract not re-bid, resulting in a 30 percent savings; 

experienced staff hired to manage medical records

•	 Cost Benefit Analysis of FECA Case Management Program: program continued

•	 Cost Benefit Analysis of Malaria Prophylaxis: Mefloquine continued as suppressive therapy for malaria

•	 EEO Compliance Report: developed strategies to recruit more Hispanic applicants and applicants with 

disabilities

•	 Small Project Assistance Grants Program: actions underway to simplify paperwork and other administrative 

processes and develop training support for project implementation and monitoring and evaluation

Office of Inspector General Audits and Evaluations

The Peace Corps’ Office of Inspector General (OIG) regularly conducts audits and evaluations of the effectiveness 

of programs that support Volunteers. OIG audits focus on fiscal accountability and the effectiveness of internal 
The Peace Corps :: performance and accountability report :: fiscal year 2011 75

Performance Section

controls over worldwide and domestic Peace Corps resources. OIG evaluations analyze the program operations 

of the Peace Corps at both overseas posts and domestic offices. Both audits and evaluations analyze compliance 

with laws, regulations, and Peace Corps’ policies, in addition to identifying internal control weaknesses and best 

practices, and recommending program improvements and the means to comply with Peace Corps policies. OIG 

audits and evaluations are submitted to agency management, which then takes appropriate action to address the 

concerns that have been identified.

During FY 2011, the OIG issued nine audit reports and six evaluation reports concerning 14 country programs. The 

audits were conducted in Albania, Belize, Ethiopia, Mexico, Mozambique, Panama, Rwanda, Togo and Ukraine. 

These reports covered administrative and financial operations at overseas posts. Other OIG FY 2011 audit work 

included: an audit of the mid-Atlantic regional recruiting office, a review of the agency’s compliance with the Federal Information Security Management Act, and oversight of the independent auditor’s annual audit of the agency’s 

financial statements. 

OIG country program evaluations were conducted in Cambodia, Ethiopia, Jamaica, Liberia, Romania and Swaziland. The program evaluation reports addressed issues such as the extent to which the post has developed and 

implemented programs that met agency goals and provided adequate training, health care, and support and oversight to Volunteers to enable them to increase host country capacity and promote cross-cultural understanding. 

During FY 2011, the OIG evaluations unit also issued a follow-up evaluation report on the agency’s 2003 evaluation of the Volunteer Delivery System. 

Program Evaluations Conducted by Office of Inspector General 

Major Findings and Recommendations:

Cambodia

•	 The Cambodia program, long requested by the government of Cambodia, was launched in 2006 by 

experienced staff with regional expertise. The program has been successfully established with a solid base of 

programmatic operations; the host government, both at national and local levels, has embraced the country 

program. 

•	 The Volunteers are well-integrated with their communities and are accomplishing project goals. Successful 

community integration has been a keystone to the Volunteers’ sense of satisfaction with service and their 

personal safety.

•	 Many of the areas of Cambodia operations that require attention can be attributed to new staff members still 

learning their roles and responsibilities. The OIG directed recommendations to improve pre-service safety 

and security training, which was largely ineffective, and to upgrade and strengthen Volunteer safety and 

security support.

•	 A prolonged vacancy in the director of programming and training position during 2010 affected key 

operations including Volunteer programming support and medical support. The post has been taking steps 

to address these issues and regain the positive momentum established in its first years of operation.

•	 The Volunteer Assignment Descriptions issued to incoming Volunteers failed to set appropriate expectations 

and did not fully describe the challenges of working in Cambodia or within a loosely managed secondary 
76 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

education system. The OIG recommended that training programs better address the program and other 

challenges that Volunteers may face during service in Cambodia. 

Ethiopia

•	 The country program was first launched in 1962, but was closed twice due to security concerns. It reopened 

in 2007 with Volunteer assignments focusing on community health and prevention of HIV/AIDS. The post 

is coordinating well with project partners, and its project goals are appropriately aligned with host country 

development priorities. 

•	 The post has made progress in establishing health and HIV/AIDS projects and building relationships 

with partner organizations by placing Volunteers in health centers, community-based organizations, and 

Ministry of Health regional offices. However, the OIG recommended that the post more effectively balance 

planning and budgeting of its own agency appropriated funds with the President’s Emergency Plan for AIDS 

Relief funding.

•	 Volunteers are well-supported by programming, training, and administrative staff members. Leadership 

at the post was weak when it reopened in 2007, and has clearly improved with the arrival of a successor 

in December 2008. Communication remained an issue, often due to staff language skills; the OIG 

recommended that this be addressed through staff English language classes. 

•	 The post has focused its energies on quality improvements to its Volunteer training programs. The addition 

of a community-based training program—to include training outside the classroom while living with a host 

family—has better prepared Volunteers to integrate into their communities.

•	 The OIG identified a number of management issues or recommendations discussed in agency re-entry 

assessments, an Internal Management Assessment, and Peace Corps safety and security officer reports that 

remained unaddressed. A complete country risk assessment has not been conducted for the post; procedures 

for responding to security incidents or crimes committed against Volunteers have not been finalized.

Jamaica

•	 Beginning in 2009, and over two successive years, the post experienced leadership and programming 

changes that significantly impacted the stability of the country program.

•	 Over several years, organizational and programming changes were not carried out in a participatory manner 

nor supported by staff or Volunteers. The post closed its health project without the input of project partners, 

staff, and Volunteers, or data to support the project closure. Staff and Volunteer morale declined. The OIG 

recommended that the post review and finalize its project plans and that headquarters managers develop and 

communicate guidelines to posts for discontinuing a project or sector.

•	 The Peace Corps Response (PCR) program was not well planned or implemented. Volunteers were unhappy 

with their sites because they did not have specific job assignments that could achieve measureable outcomes 

in a short time frame, which is a basic element of the short-term PCR Volunteer assignment. The OIG 

recommended that the post, PCR office, and region develop and implement a manageable PCR strategy, 

improve position descriptions for the Volunteers, and assign them to meaningful short-term assignments.

•	 The post’s President’s Emergency Plan for AIDS Relief (PEPFAR) program which increased from $50,000 

to $500,000 was not well-planned or well-implemented. The OIG recommended that the post work with the 

Office of AIDS Relief and the region to develop and implement a manageable PEPFAR strategy.
The Peace Corps :: performance and accountability report :: fiscal year 2011 77

Performance Section

•	 The post has a high-performing safety and security coordinator who is trusted by Volunteers. Volunteers 

and staff are well-prepared for emergencies, and the post is prepared to respond if a crime occurs against a 

Volunteer. 

Liberia

•	 The program has been well-received by the Liberian government since reopening in 2008. The secondary 

education project is aligned with host country need, and the post has developed a good working relationship 

with the Ministry of Education.

•	 Liberia is still rebuilding its educational system after years of civil war, and Volunteers faced significant 

challenges in effectively carrying out their primary assignments. The OIG recommended that the post 

and headquarters offices develop a strategy and plan to improve Volunteer effectiveness in their primary 

assignments, as well as a plan to prepare invitees and Volunteers for post-conflict-related challenges.

•	 The staff has been resolving issues caused by opening the post under an accelerated schedule without 

sufficient financial and physical resources. The post also suffered some confusion about the roles various 

headquarters offices would play in providing management support and oversight. The OIG directed 

recommendations intended to address weaknesses in staffing resources, staff role clarification, and the 

emergency action plan, among other aspects of program or office operations.

•	 The evaluation uncovered programming issues with the newly-opened two-year Volunteer program 

because the agency did not fully prepare the post to transition from PCR to a two-year program. The OIG 

recommended that the appropriate headquarters offices assess the results of Peace Corps Response pilot 

programs before launching two-year Volunteer programs.

Romania 

•	 During 2010 and 2011, the post closed three Volunteer project sectors and the country program shifted from 

a projected “moderate” growth plan to “no growth.” A decision was ultimately made to close the country 

program when the current group of Peace Corps Volunteers completes their service. These events negatively 

affected staff morale and the workplace environment.

•	 Despite the atmosphere of uncertainty about the program’s future and significant staff and programmatic 

changes, the OIG found that Romania was a strongly performing post. It maintained positive and stable 

relationships with government ministry partners. The Volunteers feel well-supported by staff and believe the 

staff is responsive to the issues they raise. 

•	 The post’s comprehensive work site selection process results in multiple potential sites and places Volunteers 

in receptive communities and meaningful assignments. The post had shifted its program focus to more of 

the rural underserved communities. The OIG recommended that the post review project management and 

Volunteer support practices to ensure that Volunteers in new work sites continued to receive adequate support.

Swaziland

•	 Swaziland has positioned itself for growth, while also preparing for an uncertain budget picture and a 

changing host country political and economic climate. A new education sector was added to the country 

program in 2010 and the post purchased its office building. 
78 The Peace Corps :: performance and accountability report :: fiscal year 2011

Performance Section

•	 The OIG found many elements of a high performing post at Swaziland. The staff works together to ensure 

that Volunteer support needs are addressed; and Volunteers have a high level of trust in staff with regard to 

their safety and security, health training, and support. 

•	 The post’s practices for developing and placing Volunteers at approved sites, including sound housing 

assessment procedures, the use of site histories to inform placements, and orienting host families and 

counterparts, are all highly effective. Volunteers receive the appropriate training at the right time and 

appreciate the quality of both the trainers and materials. 

•	 Project goals and objectives are aligned with the Kingdom of Swaziland’s priorities to combat HIV/AIDS. 

However, the OIG found that 2010 post reports were missing PEPFAR-related data, so it is difficult to 

determine whether Volunteers are meeting all project objectives at this time.

•	 Twenty-two Swaziland Volunteers did not complete their service between 2008 and 2010. Project-related 

stress—including working with HIV/AIDS populations—was a contributing factor to these early departures. 

The OIG recommended that headquarters offices assess Volunteer early termination data and, if deemed 

appropriate, use these findings to inform its process for the medical clearance and applicant selection process.

The Office of Safety and Security and the Office of 

the Chief Information Office released Consolidated 

Incident Report System version 3.0 in August 2011 to 

improve reporting, tracking, and analysis of safety and 

security incidents. The upgrade expanded the system to include vehicular accidents and also 

now includes incidents affecting both Volunteers and staff. It also added a new case management 

function to help ensure consistent, on-going support to Volunteers who are victims of crime.

Consolidated Incident

Reporting System CIRS
Financial Section

An Education Volunteer teaches 

physics in Tanzania.
80 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

An unqualified (clean) audit opinion was issued by external auditors Clifton Gunderson LLP during the FY 2011 

financial statement audit. This was the fifth consecutive year in which no material weaknesses or federal system 

noncompliances were identified. The Peace Corps was honored to receive, for the fourth time, the coveted Association of Government Accountants’ Certificate of Excellence in Accountability Reporting for quality reporting in the 

FY 2010 Performance and Accountability Report.

After receiving its highest ever appropriation of $400 million in FY 2010, the Peace Corps operated under continuing resolutions at that funding level for more than half of the fiscal year before receiving the FY 2011 appropriation 

of $375 million (less the enacted reduction of $750,000)—$25.8 million less than the FY 2010 funded level and 

$72 million less than the requested appropriation. It was, and will continue to be, difficult to provide the necessary full support for the increased number of Volunteers for their period of service (generally 27 months) and yet 

work with the FY 2010 Comprehensive Agency Assessment that provided a spending blueprint for needed quality 

improvements. Agency management absorbed the mid-year budgetary cuts by reducing staff, reducing program 

size, curtailing or postponing planned systems initiatives, and delaying the reporting dates for some applicants. 

We provided budget, finance, and accounting support, including the processing of hundreds of thousands of financial transactions in 77 currencies in order to sustain headquarters and post operations in support of the more than 

9,000 Volunteers in 76 countries in FY 2011. We effectively managed these operations with 6 percent fewer staff 

members in the Office of the Chief Financial Officer due to the efforts of my dedicated financial management staff 

and those supporting financial management throughout the three regions and the worldwide posts.

In this environment, managers were challenged to work through the corrective action plan toward resolution 

of the two significant deficiencies and 12 audit recommendations in our internal controls identified during the 

FY 2010 audit in Property, Plant, and Equipment and Information System Security. Rather than planned systems 

implementations, postponements and curtailments of systems implementations occurred. Despite best agency 

efforts, not all audit recommendations could be resolved. 

The FY 2011 audit identified two significant deficiencies in our internal controls for Property, Plant, and Equipment and Information System Security. The 26 audit recommendations for these significant deficiencies and the 

estimated completion dates for the corrective actions are addressed in Appendix 1, Summary of Audit Significant 

Deficiencies.

Financial management improvements include:

•	 Implementing a Vendor Maintenance application that allowed posts to create vendors directly on the Web 

after security and banking reviews, eliminating a previous paper-based process 

•	 Integrating an electronic savings bond process for the Volunteers that eliminated the need to secure, track, 

and mail hundreds of paper bonds annually

•	 Implementing a Web-based application that enabled our posts to report Volunteer end-of-service 

information directly, eliminating manual re-entry and data inconsistencies

•	 Recovering $12.6 million through open obligation reviews by closing or adjusting obligations in current and 

expired funds

Message from the Chief Financial Officer

0
The Peace Corps :: performance and accountability report :: fiscal year 2011 81

Financial Section

Hyperion Planning, partially implemented during the fourth quarter of FY 2010, was fully implemented during 

FY 2011 for all aspects of budget formulation, budget review, scenario analysis, and resource request management 

for the agency’s appropriated funding. Hyperion is now fully integrated with the General Ledger for execution 

reporting and analytical purposes.

An automated adaptive voucher sampling application was implemented during FY 2011 that substantially 

reduced the time and associated cost required to certify payment vouchers, allowing the reduction of three 

full-time employees. The application implemented a standard sampling methodology for low-dollar low-risk payment vouchers. This eliminated the need to perform a detailed review of 56 percent of all international payment 

vouchers, while still reviewing payment vouchers representing 83 percent of the dollars expended. This sampling 

program generated greater efficiency and reinforced internal control and accounting standards while allowing 

auditing resources to focus on payment types that require greater scrutiny on high-risk high-dollar vouchers.

As part of the continuing effort to ensure the suitability of locally engaged overseas staff, my Financial Systems 

Division developed a new database and user application for the Office of Safety and Security to track and review 

employment security certifications. Beginning in FY 2012, the system will eliminate the labor-intensive manual 

tracking clearance process and allow electronic review and approval of initial documentation and certification 

renewals. The database will be linked to the financial system and validation of active security certifications will be 

performed prior to the release of payments to overseas staff. 

The agency continues to operate as one program with the single purpose of providing trained Volunteers to host 

countries to promote world peace and friendship. The Peace Corps’ accounting system continues to be constrained 

and cannot accurately correlate actual costs with applied overhead to the agency strategic goals and outputs. 

The audited financial statements and notes that follow in this section are reliable and complete and were prepared 

in accordance with generally accepted accounting principles for federal government entities.

My staff and I look forward to implementing new financial management operational and systems improvements in 

FY 2012 as we continue to promote effective internal controls, working toward securing future unqualified audit 

opinions. 

Joseph L. Hepp, Jr.

Chief Financial Officer

November 15, 2011
82 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

Financial Statements

0

Peace Corps

Balance Sheet

As of September 30, 2011 and 2010

(In Thousands)

The accompanying notes are an integral part of these statements

2011 2010

Assets

 Intragovernmental

 Fund Balance With Treasury (Note 2 and 3) $ 175,205 $ 189,675

 Accounts Receivable (Note 4) 1,336 780

 Total Intragovernmental 176,541 190,455

 Accounts Receivable, Net (Note 4) 72 26

 General Property, Plant, and Equipment, Net (Note 5) 43,888 31,869

 Other

 Prepaid Volunteer Living Allowances (Note 6) 3,106 3,907

 Other Assets (Note 7) 2,835 2,835

 Subtotal Other 5,941 6,742

Total Assets $ 226,442 $ 229,092

Liabilities

 Intragovernmental 

 Accounts Payable $ 2,937 $ 2,590

 Other

 Unfunded FECA Liability (Note 8) 30,737 29,871

 Other Liabilities (Note 9) 785 -

 Subtotal Other 31,522 29,871

 Total Intragovernmental 34,459 32,461

 Accounts Payable 7,091 13,190

 Federal Employee and Veterans Benefits (Note 8) 133,121 138,157

 Other

 Other Employment Related Liability (Note 8) 11,573 9,319

 Non-Entity Funds (Note 2) 53,904 41,880

 Accrued Funded Payroll and Leave 6,786 6,268

 Unfunded Annual Leave (Note 8) 9,136 8,675

 Other Liability (Note 9) 770 46

 Subtotal Other 82,169 66,188

 Total Liabilities 256,840 249,996

Commitments and Contingencies (Note 10)

Net Position

 Unexpended Appropriations 97,955 121,532

 Cumulative Results of Operations (128,353) (142,436)

Total Net Position $ (30,398) $ (20,904)

Total Liabilities and Net Position $ 226,442 $ 229,092
The Peace Corps :: performance and accountability report :: fiscal year 2011 83

Financial Section

Peace Corps

Statement of Net Cost

For the Periods Ended September 30, 2011 and 2010

(In Thousands)

-UnauditedThe accompanying notes are an integral part of these statements

2011 2010

Program Costs:

 Gross Costs $ 395,293 $ 390,374

 Less: Earned Revenue (Note 11) 5,033 4,000

Net Cost of Operations $ 390,260 $ 386,374

Peace Corps

Statement of Net Cost

For the Periods Ended September 30, 2011 and 2010

(In Thousands)

The accompanying notes are an integral part of these statements

2011 2010

Program Costs:

 Gross Costs $ 395,293 $ 390,374

 Less: Earned Revenue (Note 11) 5,033 4,000

Net Cost of Operations $ 390,260 $ 386,374
84 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

Peace Corps

Statement of Net Cost

For the Periods Ended September 30, 2011 and 2010

(In Thousands)

-UnauditedThe accompanying notes are an integral part of these statements

2011 2010

Program Costs:

 Gross Costs $ 395,293 $ 390,374

 Less: Earned Revenue (Note 11) 5,033 4,000

Net Cost of Operations $ 390,260 $ 386,374

Peace Corps

Statement of Changes in Net Position

For the Periods Ended September 30, 2011 and 2010

(In Thousands)

The accompanying notes are an integral part of the statements

Cumulative Results of Operations:

Beginning Balances $ (142,436) $ (121,454)

Beginning Balances, As Adjusted (142,436) (121,454)

Budgetary Financing Sources:

 Appropriations Used 397,809 358,442

Other Financing Sources (Non-Exchange):

 Donations and Forfeitures of Property 170 -

 Transfers-In/Out Reimbursement (154) 387

 Imputed Financing (Note 15) 6,518 6,563

Total Financing Sources 404,343 365,392

Net Cost of Operations 390,260 386,374

Net Change 14,083 (20,982)

Cumulative Results of Operations (128,353) (142,436)

Unexpended Appropriations:

Beginning Balances 121,532 80,239

Beginning Balances, As Adjusted 121,532 80,239

Budgetary Financing Sources:

 Appropriations Received 375,000 400,000

 Other Adjustments (767) (265)

 Appropriations Used (397,810) (358,442)

 Total Budgetary Financing Sources (23,577) 41,293

Total Unexpended Appropriations 97,955 121,532

Net Position $ (30,398) $ (20,904)

2011 2010
The Peace Corps :: performance and accountability report :: fiscal year 2011 85

Financial Section

Peace Corps

Statement of Net Cost

For the Periods Ended September 30, 2011 and 2010

(In Thousands)

-UnauditedThe accompanying notes are an integral part of these statements

2011 2010

Program Costs:

 Gross Costs $ 395,293 $ 390,374

 Less: Earned Revenue (Note 11) 5,033 4,000

Net Cost of Operations $ 390,260 $ 386,374

Peace Corps

 Statement of Budgetary Resources

For the Periods Ended September 30, 2011 and 2010

(In Thousands)

The accompanying notes are an integral part of these statements

2011 2010

Budgetary Resources:

Unobligated Balance, Brought Forward, October 1 $ 58,532 $ 29,980

Recoveries of Prior Year Unpaid Obligations, Actual 12,594 8,919

Budget Authority

 Appropriation 375,000 400,000

 Spending Authority From Offsetting Collections

 Earned

 Collected 5,331 6,554

 Change in Receivables from Federal Sources 556 (98)

 Change in Unfilled Customer Orders

 Advance Received 785 (2)

 Without Advance from Federal Sources (349) 38

 Subtotal 381,323 406,492

Permanently Not Available (770) (574)

Total Budgetary Resources $ 451,679 $ 444,817

Status of Budgetary Resources:

Obligations Incurred:

 Direct (Note 12) $ 395,309 $ 382,380

 Reimbursable (Note 12) 5,281 3,905

 Subtotal 400,590 386,285

Unobligated Balance:

 Apportioned 46,240 48,292

Unobligated Balance Not Available 4,849 10,240

Total Status of Budgetary Resources $ 451,679 $ 444,817

Change in Obligated Balance:

Obligated Balance, Net

 Unpaid Obligations, Brought Forward, October 1 $ 90,315 $ 70,481

 Uncollected Customer Payments from Federal Sources, Brought Forward, October 1 (1,026) (1,085)

 Total Unpaid Obligated Balance, Net 89,289 69,396

Obligations Incurred, Net 400,590 386,285

Gross Outlays (407,145) (357,533)

Recoveries of Prior Year Unpaid Obligations, Actual (12,594) (8,919)

Change in Uncollected Customer Payments from Federal Sources (207) 60

Obligated Balance, Net, End of Period

 Unpaid Obligations 71,165 90,315

 Uncollected Customer Payments from Federal Sources (1,233) (1,026)

 Total Unpaid Obligated Balance, Net, End of Period $ 69,932 $ 89,289

 Net Outlays:

 Gross Outlays $ 407,145 $ 357,533

 Offsetting Collections (6,116) (6,553)

 Net Outlays $ 401,029 $ 350,980
86 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

Notes to the Financial Statements

0

Note 1 Significant Accounting Policies

a) Reporting Entity

The Peace Corps was initially established by President John F. Kennedy pursuant to Executive Order 10924 on

March 1, 1961, and was subsequently formalized by the Peace Corps Act of 1961. The Peace Corps is an independent agency within the executive branch of the United States government.

The core mission of the Peace Corps is to promote world peace and friendship by making available to interested, less developed countries men and women of the United States qualified for service abroad and willing to 

serve, even under conditions of hardship if necessary. The Peace Corps’ goals are to help the people of interested countries in meeting their need for trained men and women; to help promote a better understanding of 

Americans on the part of the peoples served; and to help promote a better understanding of other peoples on 

the part of Americans. 

b) Basis of Presentation

The financial statements present the financial position, the net cost of operations, and changes in net position 

along with budgetary resources activities of the agency pursuant to the requirements of 31 U.S.C. 3515 (b).

They have been prepared using Peace Corps’ books and records in accordance with agency accounting policies, the most significant of which are summarized in this note. 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 are presented in accordance with the applicable form and content requirements of OMB Circular A-136, Financial Reporting Requirements, issued September 2010. The statements should be read with the 

realization that they are for a component of the U.S. government, a sovereign entity.

The Peace Corps’ accounting policies follow Federal Accounting Standards Advisory Board standards and 

other generally accepted accounting principles for the United States federal government.

The financial statements are subdivided in two categories: intragovernmental and public. The intragovernmental balances, revenues, and costs reflect financial transactions between the Peace Corps and other federal 

agencies. Public activities are those with non-governmental customers, including Volunteers, contributors, 

employees, contractors, and vendors. 

Federal Financial Statements

Statement Federal Objective

Balance Sheet Reflects the agency’s financial position as of the statement date. The assets are the amount of future economic 

benefits owned or managed by the agency. The liabilities are amounts owed by the agency. The net position is 

the difference between the assets and liabilities. 

Statement of 

Net Cost

Shows separately the components of the net cost of the agency’s operations for the period. Net cost is equal to 

the gross cost incurred by the agency less any exchange revenue earned from its activities.

Statement of 

Changes in 

Net Position

Explains how the net cost for the agency’s operations was funded, and reports other changes in equity that are 

not included in the Statement of Net Cost. It reflects the changes in both the proprietary and the budgetary activities through the respective components: Cumulative Results of Operations and Unexpended Appropriations.

Statement of 

Budgetary 

Resources

Provides information about how budgetary resources were made available as well as their status at the end of 

the period. It is the only financial statement exclusively derived from the agency’s budgetary general ledger in 

accordance with budgetary accounting rules.

c) Basis of Accounting

Accounting principles encompass both accrual and budgetary transactions. Under the accrual method, revenues are recognized when earned and expenses are recognized when a liability is incurred, without regard to 

receipt or payment of cash. Under the budgetary basis, however, fund availability is recorded based upon legal 

considerations and constraints. The agency receives financing sources through direct appropriations from the 

general fund of the U.S. Treasury and offsetting collections to support its operations. “Appropriations used”

recognizes that appropriation authority has been applied against received goods and services.
The Peace Corps :: performance and accountability report :: fiscal year 2011 87

Financial Section

d) Fund Accounting Structure

The agency’s financial activities are accounted for by U. S. Treasury Appropriation Fund Symbol. They include accounts for appropriated funds and other fund groups described below for which the Peace Corps maintains financial records.

General Funds—These funds consist of the receipts and expenditures by the government that are not earmarked by law for a specific purpose and used to fund agency operations and capital expenditures.

Special or Trust Funds—These funds consist of receipts and expenditures by the government for carrying out 

specific purposes and programs in accordance with terms of the statute that designates the fund as a special 

fund or trust fund. The balances in the agency’s trust funds are non-entity assets and are included in the financial statements.

Deposit Funds—These funds consist of monies held temporarily by the Peace Corps as an agent for others. 

These include allowance and allotment accounts for employees and Volunteers. The balances in these funds 

are non-entity assets and are included in the financial statements.

General Fund Receipt Accounts—These funds consist of monies collected by the Peace Corps that are returned to the U.S. Treasury and not available for Peace Corps’ use.

e) Budget Authority

Congress annually passes multi-year appropriations that provide the agency with authority to obligate funds 

over a two-year period for necessary expenses to carry out operations. After the right to create new obligations 

has expired, this two-year budget authority is available for five additional years for adjusting obligations and 

for completing the liquidation of open obligations, advances, and receivables. After the five-year period, all 

open transactions for the respective fiscal year will be cancelled and funds will be returned to the U.S. Treasury. Any valid claims associated with these funds after closure must be processed against current year funds.

In addition, Congress enacts no year appropriations that are available until expended. All appropriations are 

subject to OMB apportionment as well as Congressional restrictions. The agency places internal restrictions to

ensure the efficient and proper use of all funds.

f) Revenues and Other Financing Sources

Peace Corps’ operations are financed through appropriations, proceeds from the sale of property, and interagency agreements. For financial statement purposes, appropriations are recorded as a financing source and 

reported on the Statement of Changes in Net Position at the time they are recognized as expenditures. 

g) Fund Balance with the Treasury

The Fund Balance with the U. S. Treasury consists of appropriated funds that are available to pay current liabilities and finance authorized purchase commitments, and special funds that periodically are direct-financing 

reimbursements to the appropriated funds.

The agency does not maintain cash in commercial bank accounts for the funds reported in the balance sheet.

All cash receipts and disbursements are processed by the U.S. Treasury or the Department of State (DOS).

The funds that make up post cashiers’ imprest funds belong to the U.S. Treasury through DOS’s accountability. These funds are routinely used to pay for small-value purchases of goods and services and are also used to 

make an occasional emergency payment. Per agreement with DOS, the Peace Corps is responsible for paying

for any losses incurred by the cashiers that would normally fall on the account holder. All international payments made by DOS on behalf of the Peace Corps are charged to the Peace Corps and reduce the applicable 

Peace Corps’ appropriation unexpended balance in U.S. Treasury records. As of September 30, 2011, cashier 

imprest funds represented by cash on hand, checks on hand, interim advances, and cashier checking account 

balances totaled approximately $1.2 million in U. S. dollar equivalents.

Fund balance with Treasury is carried forward until such time as goods or services are received and payment 

is made, or until the funds are returned to the U.S. Treasury.
88 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

h) Foreign Currency 

Accounting records for the agency are maintained in U.S. dollars, while a significant amount of the overseas 

expenditures are in foreign currencies. For accounting purposes, overseas obligations and disbursements are 

recorded in U.S. dollar equivalents based on the budgeted rate of exchange as of the date of the transaction. 

Foreign currency payments are made by the U.S. disbursing officers located at the Department of State Financial Service Centers in Charleston, South Carolina; and Bangkok, Thailand. 

i) Accounts Receivable

Accounts receivable includes amounts due from other federal entities and from current and former employees 

and Volunteers. Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established for material amounts of nonfederal (public) debt exceeding $30,000. The agency recognizes an Allowance for Doubtful Accounts when it is determined that the amounts are more likely than not to be totally 

uncollected. Accounts with approved payment plans in place and for which the debtor is meeting the terms of 

the plan are exceptions to this write-off policy.

j) Advances and Prepayments

Payments in advance of the receipt of goods and services are recorded as advances and recognized as expenses 

when the related goods and services are received. Advances are made principally to agency employees for 

official travel and prepayments to Volunteers for living allowances. 

Pursuant to Section 5(b) of the Peace Corps Act, Peace Corps Volunteers are entitled to a living allowance in 

order that they may serve effectively and safely overseas. Living allowances are paid to Volunteers to provide 

support while in their country of assignment. Allowances are based on local living standards and costs, including food, clothing, household items, rent, utilities, and local transportation.

k) Property, Plant, and Equipment (PP&E)

The agency capitalizes property, plant, and equipment that has an individual acquisition cost of $25,000 or 

greater, a useful life of two years or more, not intended for sale in the ordinary course of business, and intended to be used or available for use by the entity. Aggregate purchases of General Property, Plant, and 

Equipment in the amount of $500,000 or greater are capitalized. Software purchased for $25,000 or developed 

for internal use at a cost of $25,000 or greater is capitalized and amortized over its expected life (currently 3 to 

9 years). Vehicles in the amount of $10,000 and over are capitalized. Acquisitions that do not meet these criteria are recorded as operating expenses. Assets are capitalized at historical cost and depreciated using the 

straight-line method. The agency has established a policy that uses an estimated salvage value of 40 percent

for the agency’s vehicles based on their resale value in recent years.

Nonexpendable personal property is depreciated over 3 to 15 years. The agency operates land, buildings, and

equipment that are provided by the General Services Administration and overseas. Rent for General Services 

Administration property is expensed. Deferred maintenance amounts are immaterial with respect to the financial statements. 

l) Accounts Payable and Other Liabilities

Liabilities represent the amount of monies or other resources that are likely to be paid as the result of a transaction or event that has already occurred. Liabilities classified as not covered by budgetary resources are liabilities for which appropriations have not been enacted.

m) Employee Benefits

I. Federal Employees Compensation Act (FECA) Accrued Claims—FECA provides income and medical cost 

protection to covered federal civilian employees injured on the job, to employees who have incurred workrelated occupational diseases, and to beneficiaries of employees whose deaths are attributable to job-related 

injuries or occupational diseases through the Department of Labor (DOL). The FECA liability consists of two 

components. The first component is based on actual claims paid by DOL but not yet reimbursed by the Peace 

Corps. The Peace Corps reimburses DOL as funds are appropriated for this purpose, generally a two year lag. 

This is the liability for the actual claims paid by DOL to be reimbursed by the Peace Corps.
The Peace Corps :: performance and accountability report :: fiscal year 2011 89

Financial Section

II. Future Workers Compensation Benefits—The second component of FECA is the estimated actuarial liability 

for future benefit payments as a result of past events. This liability includes death, disability, medical, and 

miscellaneous costs. DOL determines this component annually as of September 30, and the Peace Corps recognizes an unfunded liability to DOL for the estimated future payments.

III. Accrued Leave—A liability for annual leave is accrued as leave is earned and paid when leave is taken or 

employment terminates. Accrued annual leave is paid from future funding sources and is reflected as a liability not covered by budgetary resources. Sick and other leave is expensed as taken.

IV. Employee Health Benefits and Life Insurance—The agency’s employees are eligible to participate in the contributory Federal Employees Health Benefit Program and the Federal Employees Group Life Insurance Program. The agency contributes to each program to pay for current benefits.

V. Post-Retirement Health Benefits and Life Insurance—Agency employees who may be eligible to participate 

in the Federal Employees Health Benefit Program and the Federal Employees Group Life Insurance Program 

could continue to do so during retirement. The Office of Personnel Management (OPM) has provided the 

agency with cost factors that estimate the true cost of providing the post-retirement benefit to current employees. The agency recognizes a current cost for these and other retirement benefits at the time of employment with the agency. The other retirement benefit expense is financed by OPM and offset by the agency 

through the recognition of an imputed financing source on the Statement of Changes in Net Position.

VI. Employee Retirement Benefits—Peace Corps direct hire employees participate in one of three retirement systems: Civil Service Retirement System, Federal Employees Retirement System, or the Foreign Service Retirement and Disability System. Foreign Service National (FSN) employees at overseas posts who were hired 

prior to January 1, 1984, are covered under the Civil Service Retirement System. FSNs hired after that date 

are covered under a variety of local government plans in compliance with the host country’s local laws and 

regulations. 

The Peace Corps recognizes its share of the cost of providing future pension benefits to eligible employees 

throughout their period of employment. The pension expense not covered by budgetary resources is calculated using actuarial factors provided by OPM and is considered imputed cost to the agency.

VII.Valuation of Host Country Resident Personal Services Contractor Severance and Retirement Liability—The 

Peace Corps is generally liable for separation or retirement payments to eligible host country resident personal 

services contractors (PSCs) in countries that require payments under local labor laws. Until systems are in place 

to track this liability in a timely manner, the estimate of the current and future costs of the severance and retirement liability is determined annually.

n) Commitments and Contingencies

The agency is involved in various administrative proceedings, legal actions, and claims arising in the ordinary 

course of business. Contingencies are recognized as a liability when a future outflow or other sacrifice of resources is probable and measurable.

o) Use of Estimates

The preparation of financial statements required management to make some estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the amount of revenues and costs reported during the period. Actual results could differ 

from those estimates.

p) Interest on Late Payments

Occasionally, the agency incurs interest penalties on late payments. Such interest penalties are paid to the respective vendor in accordance with the guidelines mandated by the Prompt Payment Act, P.L. 97–177, as 

amended.

q) Intragovernmental Net Costs 

The Statement of Net Cost is consolidated for the agency using a budget functional classification code. This

code is used to classify budget resources presented in the budget of the United States government per OMB.
90 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

The agency is categorized under budget functional classification code number 150—International Affairs.

Gross cost and earned revenues from other intragovernmental agencies (reimbursable agreements) fall under 

this code.

r) Adjustments to Maintain Inherent Account Relationship Integrity

In order to correct the relationships between the proprietary and budgetary accounts, a high-level analysis was 

performed. Cash balances were adjusted to align with the U.S. Treasury fund balance to permit the agency to 

pass edit checks and submit FACTS II reports to Treasury. All of the adjustments for fiscal year 2011 were 

immaterial.

s) Allocation Transfer

The Peace Corps is a party to allocation transfers with the Department of State as a receiving (child) entity. 

Allocation transfers are legal delegations by one agency of its authority to obligate budget authority and outlay 

funds to another agency. A separate fund account (allocation account) is created in the U. S. Treasury as a 

subset of the parent fund account (Department of State) for tracking and reporting purposes. All allocation 

transfers of balances are credited to this account, and subsequent obligations and outlays incurred by the child 

entity (Peace Corps) are charged to this allocation account as they execute the delegated activity on behalf of 

the parent entity. All financial activity related to these allocation transfers (e.g., budget authority, obligations, 

and outlays) is reported in the financial statements of the parent entity, from which the underlying legislative 

authority, appropriations, and budget apportionments are derived.

t) Fiduciary Activities

Fiduciary activities consist of Host Country Contributions provided to the Peace Corps by the host country 

government which are accepted under the authority of section 22 USC 2509(a)(4) of the Peace Corps Act. 

These contributions provide host country support for the Peace Corps and help defray expenses, enabling the 

Agency to use its budget more effectively. The host country retains ownership though the funds are deposited 

in special foreign currency accounts in the US Treasury. Any funds not used are returned to the host country.

Note 2 Non-Entity Assets

Non-entity assets are composed of trust fund, special fund, deposit funds, and clearing accounts. These funds are 

not available for the use of the Peace Corps and are not part of the Peace Corps’ resources. The Peace Corps monitors collections, status, and distribution. Below, as information, are the U.S. Treasury fund balances of non-entity

assets which are non-governmental. 

Non-Entity Assets 

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Trust Fund

FSN Separation Liability Trust Fund $ 6,972 $ 7,309

Special Fund

Host Country Residents Contractors Separation

Liability Fund 18,140 13,102

Deposit Funds

Volunteer Readjustment Allowance 27,712 21,093

Clearing Accounts 1,080 376

Total Non-Entity Assets 53,904 41,880

Total Entity Assets 172,538 187,212

Total Assets $ 226,442 $ 229,092

Trust Fund—The FSN Separation Liability Trust Fund represents the estimated accrued liability for separation 

pay (based on local labor law) of the FSN employees.

Special Fund— Host Country Residents Contractor Separation Liability Fund represents the estimated accrued

liability for separation pay (based on local labor law) of the personal services contractors.

Deposit Funds—The Volunteer readjustment allowance is an allowance earned by Volunteers for each month of 

satisfactory service and payable upon their return to the United States. The Volunteer payroll allotment account 

reflects the value of held U. S. government bonds purchased by the Volunteers through allotments from the readjustment allowance. The bonds allow the Volunteers to earn interest on their earnings while in service overseas.
The Peace Corps :: performance and accountability report :: fiscal year 2011 91

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Clearing Accounts—The proceeds of sales funds represent cash received from the sale of assets, primarily vehicles, and available to be reinvested in a like-kind replacement purchase (e.g., proceeds from vehicle sales used to 

purchase replacement vehicles).

Note 3 Fund Balance with Treasury

Fund Balances

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Appropriated Funds $ 121,301 $ 147,795

Total Non-Entity Assets (Note 2) 53,904 41,880

Total $ 175,205 $ 189,675

Status of Fund Balance with Treasury

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Unobligated Balance

Available $ 46,240 $ 48,292

Unavailable 4,849 10,240

Obligated Balance Not Yet Disbursed 124,116 131,143

Total $ 175,205 $ 189,675

The Fund Balance with Treasury is equal to the unobligated balance of funds plus the obligated balance not yet disbursed.

Available Unobligated Balance—Composed of apportionments available for allotment plus allotments available for 

obligation or commitment.

Unavailable Unobligated Balance—Composed of unapportioned authority plus unobligated appropriation authority 

from prior years that is no longer available for new obligations. This latter authority is only available for adjustments 

to existing obligations.

Note 4 Accounts Receivable, Net

Accounts Receivable as of 

September 30, 2011

(in thousands)

Accounts

Receivable,

Gross

Allowance for

Doubtful Accounts

Accounts

Receivable,

Net

Intragovernmental $ 1,336 $ - $ 1,336

Other 72 - 72

Total $ 1,408 $ - $ 1,408

Accounts Receivable as of 

September 30, 2010

(in thousands)

Accounts

Receivable,

Gross

Allowance for

Doubtful Accounts

Accounts

Receivable,

Net

Intragovernmental $ 780 $ - $ 780

Other 26 - 26

Total $ 806 $ - $ 806

Intragovernmental receivables are due from other federal agencies for services provided per reimbursable agreements.

Other accounts receivable are due from nonfederal entities, consisting primarily of receivables from employees.

Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established for material 

amounts exceeding $30,000. The agency recognizes an Allowance for Doubtful Accounts when it is determined 

that the amounts of nonfederal (public) debts are more likely than not to be totally uncollected. An allowance was 

not required by the agency as of September 30, 2011, since the threshold was not exceeded.
92 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

Note 5 General Property, Plant, and Equipment, Net

Components of Fixed Assets as of 

September 30, 2011

(in thousands)

Useful Life 

in Years

 Cost Accumulated 

Depreciation

Net Book

Value

Land 10 $ 83 $ - $ 83

Buildings 10 234 10 224

Construction in Progress 10,798 - 10,798

General Property, Plant, and Equipment 5–10 4,240 1,374 2,866

Vehicles 5 22,767 7,598 15,169

IT Hardware 3–15 16,406 9,898 6,508

Leasehold Improvements 10 402 221 181

Internal-Use Software in Development 248 - 248

Internal-Use Software 3–9 33,722 25,911 7,811

Total $ 88,900 $ 45,012 $ 43,888

Components of Fixed Assets as of 

September 30, 2010

(in thousands)

Useful Life 

in Years Cost Accumulated Depreciation

Net Book

Value

Land 10 $ 15 $ - $ 15

Buildings 10 15 1 14

Construction in Progress 640 - 640

General Property, Plant, and Equipment 5–10 3,165 2,780 385

Vehicles 5 21,785 6,792 14,993

IT Hardware 3–15 15,035 9,393 5,642

Leasehold Improvements 10 402 180 222

Internal Use Software in Development 1,058 - 1,058

Internal-Use Software 3–9 31,180 22,280 8,900

Total $ 73,295 $ 41,426 $ 31,869

As of September 30, 2011, Peace Corps’ fixed assets include internally developed software and those assets that are 

reflected as active in the property management databases. These assets are located at headquarters in Washington, 

D.C., the nine regional offices, and the overseas posts. Values for all assets other than internally developed software 

were obtained from data extracted from the databases. Values for internally developed software were derived from 

the most reliable available data for each system. Peace Corps acquired land and building in Swaziland during FY 

2010. Renovation of the headquarters building, which began in FY 2010, is classified as Construction in Progress.

There are no restrictions on the use or convertibility of General Property, Plant and Equipment owned by the Peace 

Corps.

Note 6 Prepaid Volunteer Living Allowances

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Prepaid Volunteer Living Allowances $ 3,106 $ 3,907

Prepaid Volunteer Living Allowances—Payments of Volunteer living allowances are made prior to the entitlement 

month so the posts can ensure timely payments of the allowances to the Volunteers. These payments are prepositioned so that Volunteers will not incur a financial burden for their living costs.

Note 7 Other Assets

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Travel Advances to Employees $ 382 $ 216

Relocation Advances to Employees 35 13

Prepaid Rent 2,418 2,461

Prepaid PSC Payroll 145

Total Other Assets $ 2,835 $ 2,835
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Relocation Advances to Employees—Direct-hire employees are provided a relocation advance when appropriate.

Travel Advances to Employees—Travel advances are provided to employees when appropriate. Advances remain in 

the financial records until they are offset against travel entitlements or collected.

Note 8 Liabilities not Covered by Budgetary Resources

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Intragovernmental Liabilities

Unfunded FECA Liability $ 30,737 $ 29,871

Liabilities

Unfunded Annual Leave 9,136 8,675

Unfunded Employment-Related Liability 11,573 9,319

Federal Employee and Veterans Benefits 133,121 138,157

Total Liabilities Not Covered by Budgetary Resources $ 184,567 $ 186,022

Unfunded FECA Liability—A liability for the direct dollar costs of compensation and medical benefits paid on the 

agency’s behalf by the Department of Labor. Since the agency is dependent on annual appropriation, it will include the amount billed for the direct costs in its budget request two years later. 

Unfunded Annual Leave—A liability for annual leave is accrued as leave is earned and paid when leave is taken or 

when the individual terminates. The balance represents the estimated value of annual leave for U.S.-hired employees earned but not used on September 30, 2011. Payments are charged to the appropriation current at the time 

of payment. The valuation of the accrued annual leave for foreign service national employees and the foreign national PSCs has been estimated for this financial statement. There were 206 foreign service nationals and 2,031

foreign national PSCs working for the Peace Corps at the fiscal year end. Annual leave earned is based on local 

labor law requirements. Annual leave is paid out of current appropriations when taken.

Unfunded Employment Related Liability—A liability for the estimated severance of foreign national PSCs. Lumpsum payments are generally made to eligible international long-term personal services contractors based on local 

labor law requirements for separation. These payments are made when the individual terminates and are paid out 

of current appropriations.

Federal Employee and Veterans Benefits—Liability for the actuarial value of future payments for FECA as estimated by the Department of Labor for the agency.

Note 9 Other Liabilities

Advances from Others—The balance of amounts advanced by other federal entities for goods and services to be 

furnished (e.g., money advance for Small Project Assistance grants).

Contingent Liability—See Note 10.

Note 10 Commitments and Contingencies

In the opinion of the management and legal counsel, the agency is liable for contingent liabilities related to administrative proceedings, legal actions, or claims that are probable and measurable in the amount of $770,000 as of 

September 30, 2011.

Disclosure is required if there is a reasonable possibility that a loss may be incurred. The likelihood of a reasonable 

possibility of a loss related to administrative proceedings, legal actions, or claims is estimated to be $450,000 as of 

September 30, 2011.

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Intragovernmental 

Advances from Others $ 785 $ -

Other Liabilities 

Contingent Liability-General Counsel Cases 770 46

Total Other Liabilities $ 1,555 $ 46
94 The Peace Corps :: performance and accountability report :: fiscal year 2011

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Note 11 Exchange Revenues

Exchange revenues represent revenue from services provided. This includes reimbursable agreements from other 

government agencies such as U.S. Agency for International Development sponsored HIV/AIDS education, prevention, and mitigation activities; and umbrella programs covering environment, health, youth, micro-enterprise,

and Small Project Assistance technical assistance.

Note 12 Apportionment Categories of Obligations Incurred: Direct vs. Reimbursable

All obligations incurred are Category A. The Peace Corps does not have any Category B or Exempt apportionments.

Note 13 Undelivered Orders at the End of the Period

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Undelivered Orders – End of Period $ 60,588 $ 74,987

The undelivered orders are budgetary obligations with and without advances/prepayments placed against federal 

budget authority where no goods or services have been received.

Note 14 Fiduciary Activities

Schedule of Fiduciary Activity

(in thousands)

HCC

Cash

2011

HCC

Cash

2010

HCC

In-Kind

2011

HCC

In-Kind

2010

Fiduciary Net Assets, Beginning $ 970 $ 1,049 $ - $ -

Contributions 1,173 1,090 4,523 4,684

Disbursements (1,374) (1,169) (4,523) (4,684)

Increase/(Decrease) in Fiduciary Net Assets 201 (79) - -

Fiduciary Net Assets, Ending $ 769 $ 970 $ - $ -

Schedule of Fiduciary Net Assets

(in thousands)

HCC

Cash

2011

HCC

Cash

2010

HCC

In-Kind

2011

HCC

In-Kind

2010

Fiduciary Net Assets

Cash and Cash Equivalents $ 655 $ 975 $ - $ -

Less: Liabilities 114 5 - -

Total Fiduciary Net Assets $ 769 $ 970 $ - $ -

Host Country Contributions (HCC) are provided to Peace Corps by the host government and are accepted under 

the authority of section 22 USC 2509(a) (4) of the Peace Corps Act. These contributions indicate host country 

support for the Peace Corps and help defray expenses, enabling the Agency to use its budget more effectively. 

The host country retains ownership though the funds are deposited to special foreign currency accounts in the US 

Treasury. In the event the funds are not used, funds are returned to the host country.

The agency received cash and in-kind contributions from host countries. In-kind contributions estimated at $4.5

million in fair market value were received at posts through the end of September 30, 2011, for services, supplies, 

equipment, and facilities. The host country cash balance is $.8 million as of September 30, 2011.

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Intragovernmental Earned Revenues $ 4,671 $ 3,751

Earned Revenues from the Public 362 249

Total Exchange Revenues $ 5,033 $ 4,000

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Direct Reimbursable Direct Reimbursable

Category A $ 395,309 $ 5,281 $ 382,380 $ 3,905

Total Obligations Incurred $ 395,309 $ 5,281 $ 382,380 $ 3,905
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Financial Section

Note 15 Reconciliation of Net Cost to Budget

FY 2011 Direct Reimbursable Total

($ in thousands)

Net Obligations Incurred $ (382,881) $ (5,107) $ (387,988)

Less: Undelivered Orders 14,836 ( 436) 14,400

Total Expended Obligation Authority (397,717) (4,671) (402,388)

Financing Sources Used (397,717) (4,671) (402,388)

Obligations Not Resourced $ - $ - $ -

Adjustments Reconciling Obligations To Costs Included in Obligations 

Not in Costs

Acquisition of Assets 22,948 - 22,948

 Subtotal 22,948 - 22,948

Included in Costs Not in Obligations

Future Funded Expenses 3,481 - 3,481

Depreciation, Amortization, and Depletion 9,081 - 9,081

Employer Contributions to Employee Benefit Programs 824 - 824

Changes in Actuarial Liabilities (5,036) (5,036)

Offsetting Revenues - (4,671) (4,671)

Imputed Financing 6,518 - 6,518 

Nonfederal Receivables (48) (48)

Net Change on Dispositions 655 - 655

Other Financing Sources 16 - 16

 Subtotal 15,491 (4,671) 10,820

Adjusted Expended Obligation Authority ( 390,260) - ( 390,260)

Statement of Net Costs 390,260 - 390,260

 Unexplained Differences $ - $ - $ - 

FY 2010 Direct Reimbursable

($ in thousands)

 Total

Net Obligations Incurred $ (372,236) $ (3,787) $ (376,023)

Less: Undelivered Orders (13,794) (37) (13,831) 

Total Expended Obligation Authority (358,442) (3,750) (362,192)

Financing Sources Used (358,442) (3,750) (362,192)

Obligations Not Resourced - - -

Adjustments Reconciling Obligations To Costs Included in Obligations 

Not in Costs

Acquisition of Assets 10,280 - 10,280 

 Subtotal 10,280 - 10,280 

Included in Costs Not in Obligations

Future Funded Expenses 5,158 - 5,158 

Depreciation, Amortization, and Depletion 7,952 - 7,952 

Employer Contributions to Employee Benefit Programs 2,327 - 2,327

Offsetting Revenues - (3,750) (3,750)

Imputed Financing 6,563 - 6,563 

Nonfederal Receivables (10) (10)

Net Change on Dispositions (15) - (15)

Other Financing Sources (18) - (18)

 Subtotal 38,212 (3,750) 34,462 

Adjusted Expended Obligation Authority (386,374) - (386,374)

Statement of Net Costs 386,374 - 386,374 

 Unexplained Differences $ - $ - $ -
96 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

Note 16 Imputed Financing

September 30, 2011

(in thousands)

September 30, 2010

(in thousands)

Federal Employees Health Benefit Program $ 4,681 $ 4,372

Federal Employees Group Life Insurance Program 14 13

Civil Service Retirement System 775 816

Federal Employees Retirement System 974 1,227

Foreign Service Retirement and Disability System 74 135

Total Imputed Costs $ 6,518 $ 6,563

Imputed financing recognizes actual costs of future benefits which include the Federal Employees Health Benefit 

Program, Federal Employees Group Life Insurance Program, and pension benefits that are paid by other federal 

entities.

Note 17 Disclosure on Contributions to the Peace Corps

Media Contributions Received –The agency was provided free donated space equivalent to $15.9 million in print, 

radio, and television media through public service announcements for FY 2011. These donations are not included 

in the financial statements.
The Peace Corps :: performance and accountability report :: fiscal year 2011 97

Financial Section

Inspector General’s Audit Transmittal Letter 

0
98 The Peace Corps :: performance and accountability report :: fiscal year 2011

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The Peace Corps :: performance and accountability report :: fiscal year 2011 99

Financial Section

Auditor’s Report

0

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     







 

INDEPENDENT AUDITOR’S REPORT

To the Director and Inspector General 

 Peace Corps 

In our audit of Peace Corps for fiscal year (FY) 2011, we found: 

• The balance sheets as of September 30, 2011 and 2010, and the related statements of 

net cost, changes in net position, and budgetary resources for the years then ended 

(hereinafter referred to as “financial statements“), are presented fairly, in all material 

respects, in conformity with accounting principles generally accepted in the United 

States of America; 

• No material weakness in internal control over financial reporting (including safeguarding 

assets) and compliance with laws and regulation; 

• Two significant deficiencies in internal control over financial reporting; and 

• No instances of reportable noncompliance with selected provisions of laws and 

regulations tested. 

The following sections discuss in more detail: (1) above conclusions, (2) our conclusions on 

Management’s Discussion and Analysis (MD&A) and other supplementary information, (3) our 

audit objectives, scope and methodology, and (4) Peace Corps comments and our evaluation. 

OPINION ON FINANCIAL STATEMENTS

The accompanying financial statements including the accompanying notes present fairly, in all 

material respects, in conformity with accounting principles generally accepted in the United 

States, Peace Corps’ assets, liabilities, and net position as of September 30, 2011 and 2010, 

and net costs; changes in net position; and budgetary resources for the years then ended. 

CONSIDERATION OF INTERNAL CONTROL OVER FINANCIAL REPORTING AND 

COMPLIANCE

In planning and performing our audit, we considered Peace Corps' internal control over financial 

reporting by obtaining an understanding of the design effectiveness of internal controls, 

determined whether these controls had been placed in operation, assessed control risk, and 

performed tests of controls as a basis for designing our auditing procedures for the purpose of 

expressing our opinion on the financial statements, but not for the purpose of expressing an 

opinion on the effectiveness of Peace Corps’ internal control over financial reporting. 

Accordingly, we do not express an opinion on the effectiveness of Peace Corps’ internal control 

over financial reporting. 

Our consideration of internal control over financial reporting was for the limited purpose 

described in the preceding paragraph and would not necessarily identify all deficiencies in 

internal control over financial reporting that might be deficiencies, significant deficiencies or
100 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

material weaknesses. However, as discussed below, we identified certain deficiencies in 

internal control over financial reporting that we consider to be significant deficiencies. 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent, or detect and correct misstatements on a timely basis. A material weakness is a 

deficiency, or a combination of deficiencies, in internal control such that there is a reasonable 

possibility that a material misstatement of the entity's financial statements will not be prevented, 

or detected and corrected on a timely basis. We believe that none of the significant deficiencies 

described below is a material weakness. 

A significant deficiency is a deficiency or a combination of deficiencies in internal control that is 

less severe than a material weakness, yet important enough to merit attention by those charged 

with governance. We consider the deficiencies described below to be significant deficiencies. 

Significant Deficiencies

These control deficiencies, detailed in Exhibit I are summarized as follows: 

1. Controls over property plant and equipment need improvement 

2. Information systems security controls need improvement 

We noted certain other nonreportable matters involving internal control and its operations that 

we plan to communicate in a separate letter to Peace Corps management. 

COMPLIANCE WITH LAWS AND REGULATIONS 

Our tests of Peace Corps’ compliance with selected provisions of laws and regulations for FY 

2011 disclosed no instances of noncompliance that would be reportable under United States 

generally accepted government auditing standards or OMB audit guidance. However, the 

objective of our audit was not to provide an opinion on overall compliance with laws and 

regulations. Accordingly, we do not express such an opinion. 

STATUS OF PRIOR YEAR’S CONTROL DEFICIENCIES AND NONCOMPLIANCE ISSUES

As required by United States generally accepted government auditing standards and OMB 

Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, as amended, we have 

reviewed the status of Peace Corps’ corrective actions with respect to the findings and 

recommendations included in the prior year’s Independent Auditor’s Reports dated November 9, 

2010. Many of the weaknesses described in the significant deficiencies (Exhibit I) are repeat 

findings over a number of years. Peace Corps has been unable to remediate these weaknesses 

in a timely manner. Exhibit II provides a detailed discussion on the status of prior year findings 

and recommendations. 

CONSISTENCY OF OTHER INFORMATION

Peace Corps’ MD&A contains a wide range of information, some of which is not directly related 

to the financial statements. We compared this information for consistency with the financial 

statements and discussed the methods of measurement and presentation with Peace Corps 

officials. Based on this limited work, we found no material inconsistencies with the financial 
The Peace Corps :: performance and accountability report :: fiscal year 2011 101

Financial Section

statements; accounting principles generally accepted in the United States, or OMB guidance. 

However, we do not express an opinion on this information. 

The Message from the Director, Performance Section, Other Accompanying Information and 

Appendices listed in the table of contents are presented for additional analysis and are not a 

required part of the financial statements. Such information has not been subjected to the 

auditing procedures applied in the audit of the financial statements and, accordingly, we express 

no opinion on them. 

OBJECTIVES, SCOPE AND METHODOLOGY

Peace Corps management is responsible for (1) preparing the financial statements in conformity 

with accounting principles generally accepted in the United States, (2) establishing, maintaining, 

and assessing internal control to provide reasonable assurance that the broad control objectives 

of the Federal Managers’ Financial Integrity Act (FMFIA) are met, and (3) complying with other 

applicable laws and regulations. 

We are responsible for obtaining reasonable assurance about whether the financial statements 

are presented fairly, in all material respects, in conformity with accounting principles generally 

accepted in the United States. We are also responsible for: (1) obtaining a sufficient 

understanding of internal control over financial reporting and compliance to plan the audit, (2) 

testing compliance with selected provisions of laws and regulations that have a direct and 

material effect on the financial statements and laws for which OMB audit guidance requires 

testing, and (3) performing limited procedures with respect to certain other information 

appearing in the Annual Report. 

In order to fulfill these responsibilities, we (1) examined, on a test basis, evidence supporting the 

amounts and disclosures in the financial statements; (2) assessed the accounting principles 

used and significant estimates made by management; (3) evaluated the overall presentation of 

the financial statements; (4) obtained an understanding of Peace Corps and its operations, 

including its internal control related to financial reporting (including safeguarding assets) and 

compliance with laws and regulations (including execution of transactions in accordance with 

budget authority); (5) tested relevant internal controls over financial reporting and compliance, 

and evaluated the design and operating effectiveness of internal control; (6) considered the 

design of the process for evaluating and reporting on internal control and financial management 

systems under FMFIA; and (7) tested compliance with selected provisions of certain laws and 

regulations. 

We did not evaluate all internal controls relevant to operating objectives as broadly defined by 

the FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient 

operations. We limited our internal control testing to controls over financial reporting and 

compliance. Because of inherent limitations in internal control, misstatements due to error or 

fraud, losses, or noncompliance may nevertheless occur and not be detected. We also caution 

that projecting our evaluation to future periods is subject to risk that controls may become 

inadequate because of changes in conditions or that the degree of compliance with controls 

may deteriorate. In addition, we caution that our internal control testing may not be sufficient for 

other purposes. 

We did not test compliance with all laws and regulations applicable to Peace Corps. We limited 

our tests of compliance to selected provisions of laws and regulations that have a direct and 

material effect on the financial statements and those required by OMB audit guidance that we 
102 The Peace Corps :: performance and accountability report :: fiscal year 2011

Financial Section

deemed applicable to Peace Corps’ financial statements for the fiscal year ended September 

30, 2011. We caution that noncompliance with laws and regulations may occur and not be 

detected by these tests and that such testing may not be sufficient for other purposes. 

We performed our audits in accordance with auditing standards generally accepted in the 

United States; the standards applicable to the financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and OMB audit guidance. 

We believe that our audits provide a reasonable basis for our opinion. 

AGENCY COMMENTS AND OUR EVALUATION

In commenting on a draft of the findings in this report, Peace Corps management concurred 

with the facts and conclusions in our report. 

********************************* 

This report is intended solely for the information and use of Peace Corps’ management, Peace 

Corps Office of Inspector General, OMB, the Government Accountability Office, and the U.S. 

Congress, and is not intended to be, and should not be, used by anyone other than these 



specified parties. 

Arlington, Virginia 

November 11, 2011 
The Peace Corps :: performance and accountability report :: fiscal year 2011 103

Financial Section

EXHIBIT I 

SIGNIFICANT DEFICIENCY 1 

CONTROLS OVER PROPERTY PLANT AND EQUIPMENT NEED IMPROVEMENT 

Throughout FY2011, the Office of Management worked to clarify property accountability policies 

and procedures. They issued a revised manual section and property accountability handbook in 

August 2011. Our audit procedures showed that asset additions and disposals are not reported 

timely and accurately to the Office of the Chief Financial Officer. Costs for internal-use software 

in development and construction-in-progress are not completely and accurately reported to the 

Office of the Chief Financial Officer. The Office of the Chief Information Officer continued to 

experience difficulties in properly reporting and tracking domestic and overseas capitalized 

Information Technology (IT) equipment. We observed several assets that could not be located 

in the capitalized asset listing. Peace Corps determined that these assets may not have been 

capitalized and therefore, would not be on the listing. 

We found four assets out of thirteen tested were not tagged with a Peace Corps property tag 

number. There were also instances where some assets had two tag numbers. We were 

informed that sometimes the vendor sends the assets already tagged with a Peace Corps tag, 

but that the Office of Management retags the pre-tagged asset thereby creating two tags. 

We also found that the asset listing contained numerous assets without identification numbers. 

Recommendations 

We recommend the Peace Corps Director ensure that: 

1a. Current policies designed to ensure complete and accurate asset listing are enforced. 

Procedures should be developed to ensure assets are properly tagged upon receipt and that 

OCIO, Office of Management and the Office of the Chief Financial Officer are provided with 

complete and timely data to record additions. 

1b. Roles and responsibilities outlined on Peace Corps Standard Operating Procedures (SOP) 

are carried out by posts and HQ for property accounting and financial reporting personnel 

that perform accuracy, verification, and completeness checks on the capitalized property 

listings. Office of Management and OCIO should determine the responsible party for 

managing and maintaining the records of overseas IT assets. 

1c. Procedures are developed to ensure that additions and disposals are recorded accurately 

and timely. OCIO should provide OCFO with timely disposal data to ensure the property 

balances are not overstated. 

1d. Timekeeping policies and procedures are implemented to adequately track, capture and 

record hours worked on capital projects such as internal-use software in development and 

construction-in-progress. 
104 The Peace Corps :: performance and accountability report :: fiscal year 2011

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SIGNIFICANT DEFICIENCY 2 

INFORMATION SYSTEM SECURITY CONTROLS NEED IMPROVEMENT 

Peace Corps made improvements to its information systems control environment during FY 

2011. However, we found that certain internal control weaknesses related to Peace Corps’ 

overall IT environment continued to exist at September 30, 2011. Our evaluation of the general 

and application controls of Peace Corps’ key IT infrastructure and financial systems identified 

the following conditions. 

Control Weaknesses 

Security Management 

• As reported under the FY 2011 Federal Information Security Management Act (FISMA) 

evaluation, the Global Infrastructure Risk Assessment dated September 20, 2010 did not 

include the Europe, Mediterranean, and Asia (EMA) Region component general support 

system or the Africa Region component general support system. 

• As reported under the FY 2011 FISMA evaluation, the Global Infrastructure System 

excluded major components. Therefore, this agency system had not been fully certified 

and authorized. 

• As reported under the FY 2011 FISMA evaluation, an updated version of MS 542 had 

not been published since January 26, 2006. Overall formal policies and procedures 

regarding local and remote maintenance were not in place. Peace Corps did not conduct 

routine preventative maintenance and records were not kept when maintenance was 

performed. Additionally, MS 542 did not include policies and procedures regarding the 

monitoring and oversight of external systems used by the agency. 

• As reported under the FY 2011 FISMA evaluation, the following System Security Plans 

had deficiencies including the following: 

o The security plan for the Global Network System did not follow National Institute 

of Standards and Technology (NIST) Special Publication (SP) 800-53, Revision 

3, Recommended Security Controls for Federal Information Systems and 

Organizations. 

o The security plan for the Financial Management System follows NIST Special 

Publication 800-53, Revision 3; however, did not include all revisions, such as 

the new Program Management section. 

o The security plan for the Global Infrastructure System excluded the Europe, 

Mediterranean, and Asia Region as well as the Africa Region. The security plan 

also did not contain the most up-to-date information. For example, the plans 

stated that no privacy impact assessment had been identified for the information 

system; however, one was posted to the Peace Corps website. 

Contingency Planning 

As reported under the FY 2011 FISMA evaluation, the following deficiencies were noted with 

regards to Peace Corps’ contingency planning: 
The Peace Corps :: performance and accountability report :: fiscal year 2011 105

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• The Peace Corps agency-wide Business Impact Analysis (BIA) had not been updated 

since 2006 to reflect the current system environment and address the weaknesses 

identified during subsequent disaster recovery tests. 

• CG visited the following Peace Corps posts during 2011: Dominican Republic, 

Guatemala, Philippines, Sierra Leone, and Benin and noted that contingency procedures 

were not tested. 

Access Controls 

• As reported under the FY 2011 FISMA evaluation, Peace Corps had not implemented 

multifactor authentication for network and local accounts. 

• As reported under the FY 2011 FISMA evaluation, overall formal policies and 

procedures regarding the control of Peace Corps issued laptops and remote access 

tokens had not been effectively implemented for the agency. 

• Deficiencies were identified regarding access controls (inactive accounts and accounts 

that did not require a password) surrounding Active Directory accounts. 

Configuration Management 

• As reported under the FY 2011 FISMA evaluation, although system level configuration 

management policies and procedures have been developed, they did not exist at the 

agency level. 

• As reported under the FY 2011 FISMA evaluation, Peace Corps has not implemented all 

of the requirements of OMB Memorandum M-08-22, Guidance on the Federal Desktop 

Core Configurations (FDCC). For example, workstations were lacking centrally managed 

controls such as session locking. Additionally, the Peace Corps Microsoft Windows 

Servers did not have mandatory security settings and related baseline configurations 

and were not currently documented. 

These findings highlight the Peace Corps’ lack of compliance with various NIST publications, 

OMB Circulars, and FISMA requirements as listed below: 

OMB Circular A-130, Management of Federal Information Resources Appendix III Section B, 

states “Rather than continue to try to precisely measure risk, security efforts are better served 

by generally assessing risks and taking actions to manage them. While formal risk analyses 

need not be performed, the need to determine adequate security will require that a risk-based 

approach be used. This risk assessment approach should include a consideration of the major 

factors in risk management: the value of the system or application, threats, vulnerabilities, and 

the effectiveness of current or proposed safeguards.” 

NIST SP 800-53 Revision 3, control RA-3, states the following regarding risk assessments, “The 

organization reviews risk assessment results [Assignment: organization-defined frequency] and 

updates the risk assessment [Assignment: organization-defined frequency] or whenever there 

are significant changes to the information system or environment of operation (including the 

identification of new threats and vulnerabilities), or other conditions that may impact the security 

state of the system.” 
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As required by the OMB Circular A-130, Appendix III on security authorization provides a form 

of quality control and challenges managers and technical staff at all levels to implement the 

most effective security controls possible in an information system. 

NIST SP 800-53 Revision 3, control CM-1, states the following regarding configuration 

management policy and procedures, ”The organization develops, disseminates, and periodically 

reviews/updates: (i) a formal, documented, configuration management policy that addresses 

purpose, scope, roles, responsibilities, management commitment, coordination among 

organizational entities, and compliance; and (ii) formal, documented procedures to facilitate the 

implementation of the configuration management policy and associated configuration 

management controls.” 

NIST SP 800-12, An Introduction to Computer Security: the NIST Handbook states: “A 

management official, normally the head of the organization or the senior administration official, 

issues program policy to establish (or restructure) the organization's computer security program 

and its basic structure. This high-level policy defines the purpose of the program and its scope 

within the organization; assigns responsibilities (to the computer security organization) for direct 

program implementation, as well as other responsibilities to related offices (such as the 

Information Resources Management [IRM] organization); and addresses compliance issues. 

Program policy sets organizational strategic directions for security and assigns resources for its 

implementation.” 

FISMA states: “Each agency shall develop, document, and implement an agency-wide 

information security program, approved by the Director under section 3543(a)(5), to provide 

information security for the information and information systems that support the operations and 

assets of the agency, including those provided or managed by another agency, contractor, or 

other source.” 

NIST SP 800-53 Revision 3, control SA-9, states, “The organization requires that providers of 

external information system services comply with organizational security requirements and 

employ appropriate security controls in accordance with applicable federal laws, Executive 

Orders, directives, policies, regulations, standards, and guidance. The organization also defines 

and documents oversight and user roles and responsibilities with regard to external information 

system services and monitors security control appliance by external service providers.” 

NIST SP 800-53 Revision 3, control MA-1, MA-2, MA-4, states the following regarding 

Controlled Maintenance, “The organization develops, disseminates, and reviews/updates: (a) a 

formal, documented, information system maintenance policy that addresses purpose, scope, 

roles, responsibilities, management commitment, coordination among organizational entities, 

and compliance; and (b) formal, documented procedures to facilitate the implementation of the 

information system maintenance policy and associated system maintenance controls. The 

organization schedules, performs, documents, and reviews records of routine preventative and 

regular maintenance (including repairs) on the components of the information system in 

accordance with manufacturer or vendor specifications and/or organizational requirements. The 

organization authorizes, monitors, and controls non local-maintenance and diagnostic activities.” 

NIST SP 800-53 Revision 3, control CM-2, states the following regarding baseline 

configurations, “The organization develops, documents, and maintains under configuration 

control, a current baseline configuration of the information system.” 
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OMB Memorandum M-08-22, Guidance on the Federal Desktop Core Configurations (FDCC), 

states “Microsoft Windows XP and Windows Vista are desktop operating systems. Accordingly, 

FDCC is applicable to all computing system using Windows XP and Windows Vista, including 

desktops and laptops but not including servers. It is important for the collective security of the 

Federal Government for all the Windows XP and Windows Vista computers to meet or exceed 

FDCC, regardless of function.” 

NIST SP 800-53, Revision 3 control CP-1 Contingency Planning Policy and Procedures states: 

“The organization develops, disseminates, and periodically reviews/updates [Assignment: 

organization defined frequency]: (a) a formal, documented, contingency planning policy that 

addresses purpose, scope, roles, responsibilities, management commitment, coordination 

among organizational entities, and compliance; and (b) formal, documented procedures to 

facilitate the implementation of the contingency planning policy and associated contingency 

planning controls.” 

NIST SP 800-53, Revision 3 control PL-2 states: “The organization develops and implements a

security plan for the information system that is consistent with the organization’s enterprise 

architecture, explicitly defines the authorization boundary for the system, describes the 

operational context of the information system in terms of missions and business processes, 

provides the security category and impact level of the information system including supporting 

rationale, describes the operational environment for the information system, describes 

relationships with or connections to other systems, provides an overview of the security 

requirements for the system, describes the security controls in place or planned for meeting 

those requirements including a rationale for the tailoring and supplementation decisions, is 

reviewed and approved by the authorizing official or designated representative prior to plan 

implementation, reviews the security plan for the information system, and updates the plan to 

address changes to the information system/environment of operation or problems identified 

during plan implementation or security control assessments.” 

NIST SP 800-53 Revision 3, control AC-19, states the following regarding Access Control for 

Mobile Devices, “The organization: (a) Establishes usage restrictions and implementation 

guidance for organization-controlled mobile devices; (b) Authorizes connection of mobile 

devices meeting organizational usage restrictions and implementation guidance to 

organizational information systems; (c) Monitors for unauthorized connections of mobile devices 

to organizational information systems; (d) Enforces requirements for the connection of mobile 

devices to organizational information systems; (e) Disables information system functionality that 

provides the capability for automatic execution of code on mobile devices without user direction; 

(f) Issues specially configured mobile devices to individuals traveling to locations that the 

organization deems to be of significant risk in accordance with organizational policies and 

procedures; and (g) Applies [Assignment: organization-defined inspection and preventative 

measures] to mobile devices returning from locations that the organization deems to be of 

significant risk in accordance with organizational policies and procedures.” 

NIST SP 800-53 Revision 3, control AC-2, states the following regarding account management, 

“The organization manages information system accounts, including: (d) Requiring appropriate 

approvals for requests to establish accounts; (e) Establishing, activating, modifying, disabling, 

and removing accounts; (i) Granting access to the system based on: (i) a valid access 

authorization; (ii) intended system usage; and (iii) other attributes as required by the 

organization or associated missions/business functions.” 
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NIST SP 800-53 Revision 3, control IA-2, states the following regarding identification and 

authentication, “The information system uniquely identifies and authenticates organizational 

users (or processes acting on behalf of organizational users). And applicable control 

enhancements: “(1) The information system uses multifactor authentication for network access 

to privileged accounts. (2) The information system uses multifactor authentication for network 

access to non-privileged accounts. (3) The information system uses multifactor authentication 

for local access to privileged accounts. (8) The information system uses [Assignment: 

organization-defined replay-resistant authentication mechanisms] for network access to 

privileged accounts.” 

Recommendations

We recommend the Peace Corps Director ensure that: 

2a. The system configuration management procedures are integrated fully with the agency-wide 

configuration management plan. 

2b. The impact analyses, test plans, and test results for system changes are completed prior to 

component migration to production and documentation is maintained of the system 

changes. 

2c. All stages of the configuration management process include methodologies for approving 

specific change types, identifying the use of the varying change types, and identifying the 

process flows for each type of change. 

2d. The change control policies are updated to ensure that formal procedures for requesting, 

approving, coding, testing and promoting a change are appropriately documented. 

2e. Formal risk assessments are completed for all Peace Corps major applications and general 

support systems. 

2f. A risk assessment review process is developed and implemented to include frequency of 

reviews and updates. 

2g. Full certification and authorization is completed for all Peace Corps information systems in 

accordance with Peace Corps policy, NIST Special Publication 800-37 guidance, and OMB 

Circular A-130. 

2h. Manual Section 542: Information Technology Security Policies is completed, approved and 

updated. 

2i. Procedures for the monitoring and security oversight of external systems are documented. 

2j. Formal local and remote maintenance policies and procedures, including the logging of 

maintenance is developed and implemented. 

2k. The agency Business Impact Analysis is reevaluated and updated to ensure that it 

accurately represents the current Peace Corps environment and addresses the deficiencies 

noted in the disaster recovery tests. 
The Peace Corps :: performance and accountability report :: fiscal year 2011 109

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2l. All system Contingency Plans are tested to ensure procedures for reconstitution and 

recovery of the systems are adequate. 

2m. Guidance to posts regarding development of post contingency plans and testing of 

contingency scenarios is provided to determine if procedures for reconstitution and recovery 

of the post systems are adequate. 

2n. System security plans for Peace Corps systems are completed and updated in accordance 

with OMB Circular A-130, NIST SP 800-18, and NIST SP 800-53 Revision 3. 

2o. System Computer Security Coordinators review and update System Security Plans on an 

annual basis to ensure that the security requirements and controls for the system are 

adequately documented and reflect current operating environment. 

2p. Formal procedures for requesting access to portable and mobile devices are implemented 

and include management approved access request forms that document each user’s 

approval and assigned device. 

2q. Policies and procedures for portable and mobile devices which travel to locations that the 

organization deems to be of significant risk are implemented. 

2r. A method to track the assignments of portable and mobile devices by specific equipment 

identifiers and individual assigned is developed. 

2s. Procedures are developed and implemented to ensure the timely return of portable and 

mobile devices and updating of equipment inventories to reflect current possession. 

2t. Implement multifactor authentication for local access to privileged accounts, network access 

to privileged accounts, and network access to non-privileged accounts. 

2u. Periodically audit network user accounts, specifically (a) accounts not used in over 90 days, 

(b) accounts that do not require passwords, and (c) accounts with passwords set not to 

expire. 

2v. Mandatory security settings and baseline configurations are maintained for Microsoft 

Windows Servers. 
110 The Peace Corps :: performance and accountability report :: fiscal year 2011

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EXHIBIT II 

STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS 

Prior Year Condition Status As Reported at September 30, 2011 Status as of 

September 30, 2011 

Controls over Property 

Plant and Equipment 

Need Improvement 

Significant Deficiency: 

Throughout FY2011, the Office of 

Management worked to clarify property 

accountability policies and procedures. They 

issued a revised manual section and property 

accountability handbook in August 2011. Our 

audit procedures showed that asset additions 

and disposals are not reported timely and 

accurately to the Office of the Chief Financial 

Officer. Costs for internal-use software in 

development and construction-in-progress are 

not completely and accurately reported to the 

Office of the Chief Financial Officer. The Office 

of the Chief Information Officer continued to 

experience difficulties in properly reporting and 

tracking domestic and overseas capitalized 

Information Technology (IT) equipment. We 

observed several assets that could not be 

located in the capitalized asset listing. Peace 

Corps determined that these assets may not 

have been capitalized and therefore, would not 

be on the listing. 

We found four assets out of thirteen tested 

were not tagged with a Peace Corps property 

tag number. There were also instances where 

some assets had two tag numbers. We were 

informed that sometimes the vendor sends the 

assets already tagged with a Peace Corps tag, 

but that the Office of Management retags the 

pre-tagged asset thereby creating two tags. 

We also found that the asset listing contained 

numerous assets without identification 

numbers. 

This is a repeat finding 

– See Significant 

Deficiency 1 

Information System 

Security Controls Need 

Improvement 

Significant Deficiency:

Peace Corps made improvements to its 

information systems control environment 

during FY 2011. However, we found that 

certain internal control weaknesses related to 

Peace Corps’ overall IT environment continued 

to exist at September 30, 2011. Our evaluation 

of the general and application controls of 

Peace Corps’ key IT infrastructure and 

financial systems identified weaknesses in the 

areas of security management, contingency 

planning, access controls and configuration 

management. 

This is a repeat finding 

– See Significant 

Deficiency 2 
Other Accompanying Information

A Youth Development Volunteer in Ecuador works 

with children to create a small business bakery 

project.
112 The Peace Corps :: performance and accountability report :: fiscal year 2011

Other Accompanying Information

Inspector General’s Statement on the Peace Corps’ Management and 

Performance Challenges

0

Office of Inspector General

TO: Aaron S. Williams, Peace Corps Director

FROM: Kathy A. Buller, Inspector General 

SUBJECT: Inspector General’s Statement on the Peace Corps’ Management and 

Performance Challenges

DATE: October 19, 2011

In accordance with the Reports Consolidation Act of 2000, we are submitting what we have 

determined to be the most significant management and performance challenges facing the Peace 

Corps. Our challenges, discussed in the attachment to this memo, are to be included in the 

Agency’s Performance and Accountability Report for fiscal year 2011 (FY 2011). We believe 

that three of the five areas we indentified in our FY 2009 challenges and one of the areas in our 

FY 2010 challenges continue to present significant management and performance challenges at 

the Peace Corps so we are presenting them again as part of this year’s challenges. In addition, 

we have identified one new challenge that crosses a number of important functional areas.

In our FY 2010 challenges we identified the need to improve the agency’s business operations at 

both agency headquarters and field locations in order to accommodate growth and expansion. 

While Volunteer growth has not matched expectations, there is still a need for the agency to 

modernize and enhance its business tools and processes. Therefore we have included many of 

the same elements related to that specific challenge in our new challenge on streamlining 

business processes and modernization of information systems.

This year’s challenge areas are listed below:

Information Technology Management (FY 2009)

Property Management (FY 2009)

Protection of Personally Identifiable Information (FY 2009)

Remediation of Audit Findings and Recommendations (FY 2010)

Business Processes and Information Systems (New)

These challenges illustrate the most significant areas we believe need improvement for Peace 

Corps to effectively manage its resources and minimize the potential for fraud, waste, and abuse 

occurring in its operations. By addressing the issues related to our challenge areas the agency 

could potentially achieve operational efficiencies and improve mission effectiveness.

Attachment
The Peace Corps :: performance and accountability report :: fiscal year 2011 113

Other Accompanying Information

Challenge Information Technology Management 

In last year’s Challenges, we indicated that the agency’s most significant risks have been, and 

continue to be, associated with ensuring that the agency places limited resources where they are 

most needed; that funds spent on contracts consistently meet requirements; and that the 

information technology (IT) infrastructure effectively supports the Peace Corps mission. The 

Office of the Chief Information Officer (OCIO) has made progress in strengthening IT 

management through significantly improving its investment review board process, developing an 

IT strategic plan, and updating its systems development lifecycle process. Further, management 

has performed significant IT upgrades at overseas locations and made a number of other 

operational improvements. However, the agency lacks a documented comprehensive enterprise 

architecture to assist in guiding and making decisions impacting IT. 

Although management continues to also make progress in strengthening Peace Corps’ IT 

security management, some issues associated with Federal Information Security Management 

Act compliance that were discussed in prior IG Challenges have not been fully resolved. For 

example, the processes for configuration management have not been fully implemented and 

contingency plan testing is not being accomplished at overseas posts. Achieving full compliance 

with federal laws and regulations that apply to managing the Peace Corps’ IT infrastructure are 

critical management challenges. OCIO is further challenged by high personnel turnover in key 

technical areas resulting, at least, in part from term limit assignments imposed by law and the 

availability of qualified resources. It is also having difficulty filling vacancies due to budget 

constraints. As a result, OCIO is presently down to 80 percent of its authorized full time 

equivalent personnel strength and is projected to be at about 71 percent by fiscal year end 2012.

Challenge Property Management

Accountability over Peace Corps property continues to present challenges for management. The 

agency’s FY 2011 (Third Quarter) balance sheet indicates the agency’s general property, plant, 

and equipment (PP&E) has a net book value of about $41.3 million. Peace Corps’ general PP&E 

includes primarily vehicles, office furniture, computer equipment, and software. Property 

management involves organizational activities related to acquiring, tracking, controlling, and 

disposing of these items. In last year’s Challenges, we reported that issues with overall property 

accountability have continued to impact operations.

We noted, during the last 12 months, there were significant problems with accountability of 

certain assets, managing excess property, and recording and tracking. For example, we found at 

some Peace Corps posts that records were not being updated to reflect all property that had been 

disposed and/or added to inventory and periodic required physical counts were not being 

conducted. Our external auditors reported that the agency had not taken the necessary corrective 

actions that were recommended last year to ensure accurate tracking of assigned laptop 

computers at headquarters. As a result, there were still problems determining the location of 

these assets. 

Other examples of deficient property management include failing to dispose of property 

identified as “excess to needs” in a timely manner and inadequate physical control. Ineffective 
114 The Peace Corps :: performance and accountability report :: fiscal year 2011

Other Accompanying Information

property management unnecessarily exposes the agency to risks associated with fraud, waste, 

and abuse and drives up operating costs. The new property accountability software began pilot 

implementation in the Fourth Quarter of FY 2011 and is expected to be fully implemented and 

utilized in time for the annual property inventory in First Quarter of FY 2012. The capabilities 

for improving accountability will not be known until the new system has been fielded and an 

assessment of its effectiveness is made. As a result, improving overall property management and 

strengthening internal control related to property accountability continues to be a management 

challenge.

Challenge Protection of Personally Identifiable Information

We first identified this challenge during FY 2009 and we continue to identify problems with the 

agency’s management and control over Personally Identifiable Information (PII). The Peace 

Corps routinely receives, processes, and maintains significant amounts of PII. PII includes 

information that can be used to distinguish or trace an individual’s identity, such as name, Social 

Security Number, or biometric records. This information can be used to link to other data such 

as bank accounts and other financial or personal information that can assist perpetrators in 

committing crimes associated with identity theft. The Office of the Chief Information Office 

reported there were nine separate breaches in PII during FY 2011. The breaches were 

compromised of PII data associated with over 180 individuals. 

Since FY 2009, we have identified the protection of PII as a management challenge that called 

for enhanced management practices and more effective internal control. In June 2009, OIG 

investigated and issued investigative reports on the breach of more than 495 medical files that 

included applicant’s names, Social Security Numbers, addresses, dates of birth, dental records, 

lab reports, and medical questionnaires. In FY 2010, a Peace Corps recruiter reported that her 

laptop and 10 applicant files was stolen during a visit to a university campus. Later that same 

year a country director reported that two Peace Corps USB drives containing PII for 52 trainees 

were stolen when a vehicle was broken into. 

In last year’s management response to this issue, the implementation of the Volunteer Life Cycle 

System and electronic medical records systems were mentioned as measures that should 

significantly reduce the risk of PII security breaches. However, neither system has been 

implemented. Until these improvements are made and the systems described are fully 

operational, we believe that PII will remain potentially vulnerable to breaches. As a result, it 

will continue to be a challenge for management to ensure Peace Corps personnel consistently 

comply with applicable federal and agency guidance governing managing PII data.

Challenge Remediation of OIG Findings and Recommendations

In FY 2010 we reported a challenge related to untimely remediation of OIG findings and 

recommendations, which continues to be a challenge. We reviewed some of the agency’s key 

headquarters’ level business processes and made a number of recommendations in three separate 

OIG audit reports issued in FY 2010. These recommendations would improve efficiencies and 

effectiveness associated with supporting Volunteers in the field; strengthening internal control; 
The Peace Corps :: performance and accountability report :: fiscal year 2011 115

Other Accompanying Information

and ensuring compliance with applicable Federal laws, regulations, and Peace Corps policy. The 

reports are listed below:

Office of the Chief Information Officer Budget Formulation and Management

Process for Soliciting, Awarding, and Administering Contracts

Volunteer Safety and Security Program

Although management has made progress in remediating some of the associated findings and 

recommendations, it continues to not be effective or timely in taking corrective actions necessary 

to remediate the deficiencies noted in the related reports. Management was initially notified 

regarding the reports’ findings and recommendations 17 to 20 months ago (two Preliminary 

Audit Reports were issued in January 2010 and one was issued in April 2010). As of the end of 

FY 2011, management had taken sufficient corrective actions to enable us to close 43 of the 68 

recommendations included in the three reports.

In addition, we issued an evaluation report on the Volunteer Delivery System (VDS) in October 

2010 (Follow-up Evaluation of the VDS). The VDS is mission critical because it is used as a 

repository for data on recruiting, selecting, and placing Volunteers in the field. The evaluation 

followed up on a prior OIG evaluation related to VDS that was performed in 2003. Based on our 

follow-up effort, we determined that many of the corrective actions agreed to by management in 

2003 were either not initiated or were not fully carried out. To date, management has remediated 

only two of the 23 recommendations contained in the follow-up report.

This lack of timely remediation of OIG findings and recommendations by senior management is 

a trend that has continued through FY 2011. Despite the best efforts made by the chief 

compliance officer over the last 12 months to facilitate remediation, a significant number of audit 

and evaluation findings and recommendations remain in an open status. As of September 30, 

2011, there were 125 recommendations open for more than 180 days, including 42 that were 

issued two to seven years ago.1

 As mentioned in the FY 2010 Challenges, timely remediation of 

findings and recommendations is dependent on senior management’s full attention and support in 

correcting known deficient conditions, as well as ensuring that there is a priority placed on 

compliance. We believe agency management needs to place greater emphasis on remediating 

findings and implementing recommendations. 

Challenge Business Processes and Information Systems 

Although the Peace Corps is continuing to streamline operations and improve the technology that 

supports key business processes and critical Volunteer support functions, it is constrained by 

limited resources and inadequate planning. Given new fiscal realities, the Peace Corps prospects 

for growth and expansion are uncertain. However, the number of Volunteers serving at the end 

of FY 2011 reached nearly 9,100. This figure represents the highest Volunteer strength in 40 

 1 Outstanding recommendations include post audits, country program evaluations, financial statement audit, 

information security program audit, and special reviews. Recommendations issued in conjunction with the financial 

statement and the information security program audits are part of a normal 12-month audit cycle. As a result, 

recommendations made during a given fiscal year will remain in an open status during the entire subsequent fiscal 

year. Prior year findings and recommendations may be reissued if management has not taken sufficient corrective 

actions.
116 The Peace Corps :: performance and accountability report :: fiscal year 2011

Other Accompanying Information

years. The Peace Corps operates using a decentralized organizational structure, relying on 

country directors at overseas posts to implement the policies established by headquarters. A 

decentralized organizational structure requires clear and concise policies and procedures that are 

consistently applied; open lines of communication; effective planning and budgeting for needed 

resources; and strong management oversight to ensure that the agency’s mission is effectively 

accomplished throughout the world. In addition, IT should facilitate the processes by automating 

workflow and controls to provide managers with the data necessary to efficiently monitor and 

manage operations. A responsive management team that provides quality support services to 

Volunteers will require enhanced business processes and modern IT systems. 

In response to several OIG audits and evaluations, the Peace Corps has made improvements to its 

operations, including: IT governance, acquisition planning and contracting, safety and security 

support, and medical support. However, some important initiatives to improve business 

processes have been delayed or postponed. As a result, although progress has been made, the 

agency still requires improvements in critical mission areas such as:

Medical Care – In response to an OIG special review the Peace Corps Office of 

Volunteer Support/Office of Medical Services (OMS) developed a Quality Improvement 

Plan. The plan included a series of technical guidance intended to raise the standards of 

medical care for Volunteers, enhance the credentialing process, and reform the scope of 

practice policies for medical professionals. However, because of resource constraints 

OMS could not move forward during FY 2011 on acquiring systems that better manage 

pharmaceutical supply inventory and enable electronic filing of health records. Further, 

although a medical chart review process intended to increase clinical oversight was made 

more rigorous and expanded, only a fraction of charts are being submitted by posts and 

reviewed by OMS because it presently lacks the capability to review the number deemed 

necessary to impact improvement. In addition, the agency is challenged to ensure 

medical officers are properly trained and fully comply with the large volume of new 

technical guidance that ranges from new or revised treatment options to mandatory 

medical documentation standards. 

Safety and Security – The agency took steps to improve the adequacy and consistency of 

Volunteer safety and security by increasing lines of communication between 

headquarters safety and security management and the safety and security coordinators 

overseas. The agency developed an agency-wide plan, specific security procedures, and 

a Volunteer safety and security handbook. The agency continues to train overseas staff 

on the policies and procedures. Improving Volunteer safety and security will continue to 

be a challenge without the establishment and effective implementation of a 

Memorandum of Understanding with the Department of State on roles and 

responsibilities for responding to Volunteer safety and security incidents overseas. 

Further, to ensure they continue to make progress the agency will need to monitor the 

success and pitfalls of the newly established process and make additional improvements, 

such as developing a system for ensuring safety and security recommendations are 

implemented.
The Peace Corps :: performance and accountability report :: fiscal year 2011 117

Other Accompanying Information

Volunteer Delivery System – In 2009, the Peace Corps began revising the Volunteer 

Delivery System (VDS) technology system. The goal of the redesign was to develop and 

upgrade the core business systems and associated business practices required to manage 

all stages of the Volunteer lifecycle. This redesign effort is ongoing. The agency’s 

commitment to implementing a new system, including modernizing the VDS and 

successfully completing related long-term projects that require both human and capital 

resources, will determine whether it can achieve its goals. Also critical to the 

effectiveness of the redesigned VDS is maintaining Volunteer quality and putting in 

place processes and data measurement systems to ensure the Peace Corps is selecting and 

placing Volunteers who can help the people of interested countries in meeting their need 

for trained men and women.

Document Management – Several key functions including travel authorizations, 

vouchering, contract management, and leave requests, remain largely paper-based. 

Streamlining and integrating these functions through an IT solution would reduce data 

entry error, improve efficiency, reduce paper dependency, and provide greater storing 

and retrieving capabilities. The Peace Corps recognizes the need for enhanced document 

management systems, but has not sufficiently prioritized and allocated resources to 

implement significant improvements. The agency is exploring options such as Microsoft 

SharePoint to provide greater automation and document control. 

Accessibility of Useful and Accurate Data – While conducting audits and evaluations, 

OIG continues to encounter problems obtaining significant data for key business 

processes. For example, OIG has had difficulty accessing summary data related to 

employee retention and turnover, as well as cost and cumulative impact of Volunteer 

medical accommodations. Moreover, up until this year, the Peace Corps did not 

maintain a central database to capture formal resource allocation requests submitted by 

its component offices to management for review and approval. As a result, prior year 

data was not readily available for review and analysis and any data assembled was 

potentially incomplete or inaccurate. Access to accurate data related to headquarters and 

international operations informs and guides program budgeting, strategic planning, 

program development and management, as well as responses to critical issues concerning 

program effectiveness, efficiency, and waste. Without timely access to relevant data the 

agency cannot easily make informed management decisions and assess whether it is 

meeting its performance goals.
118 The Peace Corps :: performance and accountability report :: fiscal year 2011

Other Accompanying Information

Agency Response to Inspector General’s Statement on the Peace Corps’ 

Management and Performance Challenges

0

TO: Kathy A. Buller, Inspector General

FROM: Aaron S. Williams, Director

SUBJECT: Agency Response to Inspector General’s Statement on the Peace Corps’ 

Management and Performance Challenges

DATE: November 9, 2011

Thank you for your October 19, 2011 memorandum and attachment presenting Office of 

Inspector General’s (OIG) management and performance challenges for the agency.

I am addressing the five challenge areas identified by the OIG:

Challenge Information Technology Management (FY 2009)

Despite budget constraints, the groundwork for the formal documentation of a comprehensive 

enterprise architecture for the Peace Corps is underway. The business process and inventory

elements will be completed by the end of the second quarter in FY 2012. The remaining 

elements can only be addressed as budgetary resources become available.

In FY 2011, the Office of the Chief Information Officer (OCIO) provided a template for posts to 

use in the development of their IT contingency plans. Contingency planning policy will be 

established in FY 2012 requiring posts to conduct annual tests of their IT contingency plans and 

submit test results to the OCIO. Resolution of the remaining Federal Information Security 

Management Act (FISMA) compliance issues will be dependent on the availability of additional 

budgetary resources.

Challenge Property Management (FY 2009)

The agency’s new property accountability software system, Bar Tracks, was fully deployed in 

the fourth quarter of FY 2011. In conjunction with this deployment, all offices and posts 

completed property management training in preparation for the agency-wide annual inventory in 

November 2011. With this new automated tool, headquarters will have the capability to provide 

significantly improved oversight of post property and posts will be able to properly account for 

their assets. When IT assets are fully incorporated in Bar Tracks by the end of FY 2012, 

adequate controls will be in place to track all laptops.

In September 2011, the agency revised Manual Section 527, Vehicle Acquisition, Disposal, and 

Management, and the Vehicle Fleet Management Handbook to strengthen its policies for the 

purchasing and disposal of vehicles. These new policies provide for increased oversight from 

headquarters when posts procure vehicles locally or dispose of vehicles without the assistance of 
The Peace Corps :: performance and accountability report :: fiscal year 2011 119

Other Accompanying Information

a third party auction house. In addition, the agency recently approved the purchase of a vehicle 

fleet management software system. This is expected to be implemented in FY 2012 and will

provide headquarters with improved oversight capabilities for vehicle usage and disposals.

In August 2011, the agency’s policies and procedures for the accountability of property were 

updated with the issuance of revised Manual Section 511, Property Management, and the 

Personal Property Accountability Management Handbook.

Challenge Protection of Personally Identifiable Information (FY 2009)

When the new automated Volunteer Delivery System, Database of Volunteer Experience System 

(DOVE) is fully implemented in FY 2012, much of this challenge should be resolved. DOVE 

includes both the subsystems of Volunteer Life Cycle Management and Medical Pre-Service 

Screening that will reduce manual processing. Medical applications and correspondence will 

then be processed through a secure portal, replacing the current paper system that is more prone 

to breach via nurse error. Training for DOVE implementation is already underway. Funding for

an electronic medical record system was recently approved. Development of that system will 

start immediately and our expectation is that the system will be fully deployed and in operation 

in FY 2014. 

The FY 2011 security breaches reported to OIG were caused by human error and manual 

processing. The OCIO and Office of Volunteer Recruitment and Selection switched to using 

electronic mail communications to eliminate the paper processing that caused the problem that 

affected 177 of the 180 individuals cited by OIG. To further improve PII handling during 

FY 2011, the agency created several standard operating procedures, instituted orientation and 

training sessions, eliminated PII on many Peace Corps forms, further restricted access to 

medically confidential information, and implemented data encryption on laptops.

Challenge Remediation of Audit Findings and Recommendations (FY 2010)

The agency is committed to the timely remediation of OIG findings and recommendations and 

believes that there has been significant progress in FY 2011. 

While 43 recommendations in the three audit reports cited by OIG have been closed, another 12 

have been implemented by the agency and submitted to OIG for review. This leaves just 13 

recommendations that have not yet been implemented. Department heads as well as senior

management of the agency are committed to full implementation and closure of these OIG 

recommendations. 

With respect to the Volunteer Delivery System evaluation report, many of the remaining 

recommendations will be addressed when DOVE is fully implemented in FY 2012.

Of the182 recommendations that were open at the end of FY 2010, 138 have been closed by OIG

and another 14 have been implemented by the agency and submitted to OIG for review. This

leaves only 30 recommendations that have not yet been implemented. This is an implementation

rate of 76 percent for OIG recommendations that were open at the end of FY 2010.
120 The Peace Corps :: performance and accountability report :: fiscal year 2011

Other Accompanying Information

In FY 2011, 296 new recommendations were generated by OIG audits, evaluations and special 

reviews. Of those recommendations, 196 have already been implemented and closed by OIG, for 

an implementation rate of 66 percent.

Based on the data provided, the agency and its senior management have made substantial 

improvement in the timely remediation of OIG findings and recommendations in FY 2011.

Of the 42 recommendations that were issued two to seven years ago, 10 are from the Financial 

Statement Audit and 19 are from the Information Security Program Audits. Those 

recommendations for which remediation was not dependent upon future events or availability of 

additional resources have largely been addressed and are awaiting OIG review. Of the remaining 

13 recommendations, two have now been closed, two more have been implemented and 

submitted for OIG review, and the remaining nine are being addressed. 

Notwithstanding the progress that has been made in FY 2011 in implementing OIG 

recommendations and, in particular, to address the backlog of OIG recommendations from past 

years, further steps are planned to address the concerns raised by OIG. Therefore, additional 

processes and procedures will be put in place in FY 2012 by the Chief Compliance Officer to

ensure that all OIG recommendations are fully implemented by senior management in 

conjunction with the Chief Compliance Officer.

Challenge Business Processes and Information Systems (New)

The completion of initiatives to improve business processes will continue to be dependent on the 

availability of appropriated funding and agency priorities. In FY 2011, the agency received a 

mid-year appropriated funding cut of almost $26 million. This required the agency to make

difficult decisions on the allocation of limited resources, including a significant reduction in the 

planned rate of growth in number of volunteers as well as the postponement of some planned 

initiatives to improve business processes. With continuing budget uncertainties, the agency is 

prioritizing the most critical areas.

Medical Care. Funding for an electronic medical record system was recently approved. 

Development of the system will start immediately and our expectation is that the system will be 

fully deployed and in operation in FY 2014. A workbook designed to help posts with 

pharmaceutical inventory management was sent to posts in January 2011. An updated policy on 

Medical Supplies and Equipment, along with technical guidelines implementing that policy, have 

been approved by the agency’s Senior Policy Committee. All Peace Corps Medical Officers were 

invited to regional continuing medical education conferences in FY 2011 at which training on 

new medical technical guidelines was provided. Funding for FY 2012 was recently approved to 

hire additional nurses and medical officers for the Quality Improvement Unit. This will enable 

the Office of Volunteer Support to better implement the medical chart review process.

Safety and Security. The agency is currently in discussion with the Bureau of Diplomatic 

Security in the Department of State on the terms of a formal Memorandum of Understanding 
The Peace Corps :: performance and accountability report :: fiscal year 2011 121

Other Accompanying Information

documenting their respective roles in ensuring the safety and security of Peace Corps Volunteers. 

It is expected that this Memorandum of Understanding will be completed in the first half of 

FY 2012. Though Peace Corps and Diplomatic Security have already been working together 

closely, this Memorandum of Understanding will document procedures for cooperation between 

the Peace Corps and Diplomatic Security.

The agency has systems in place to ensure that safety and security improvements are being 

implemented. In FY 2011, an improved system was put in place through which the regions and 

the Office of Safety and Security jointly review, prioritize, and track the implementation of 

recommendations of Peace Corps Safety and Security Officers who make regular on-site visits to 

posts. In addition, the agency’s safety and security staff conducts systematic reviews using 

incident and trend analysis, the crime victimization survey, and feedback from staff members 

and Volunteers.

Volunteer Delivery System. The agency expects the new automated Volunteer Delivery 

System, DOVE, will be fully implemented in FY 2012. This system will, among other things, 

make applicant data more readily available and, together with associated changes to the 

Volunteer application process, enable more effective matching of applicants with the needs of 

the countries being assisted.

Document Management. The agency is currently piloting two demonstration business 

modernization projects (contract document management and regional recruiting office leave 

approval) using the Microsoft Office 365 (SharePoint) cloud solution. In the second half of 

FY 2012, the OCIO should be able to begin an agency-wide SharePoint document management 

system if resources become available.

Accessibility of Useful and Accurate Data. The agency is lacking a central authoritative source 

to obtain data for some key business processes. The summary data related to employee retention 

and turnover issue experienced by the OIG in FY 2010 was due to human error and that data can 

be accessed by system query. The new electronic medical record system to be fully deployed in 

FY 2014 will have a component giving the agency access to data on medical expenditures. With 

the full implementation of Hyperion Planning in FY 2011, budgetary and resource allocations are 

available in real time. 
122 The Peace Corps :: performance and accountability report :: fiscal year 2011

Other Accompanying Information

Summary of Financial Statement Audit

Audit Opinion Unqualified

Restatement No

Material Weaknesses Beginning 

Balance New Resolved Consolidated Ending Balance

Total Material Weaknesses 0 0 0 0 0

Summary of Management Assurances

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

Statement of Assurance Unqualified

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of Assurance Unqualified

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0 

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of Assurance Systems conform to financial management system requirements

Non-Conformances Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

Total Non-Conformances 0 0 0 0 0 0

Summary of Financial Statement Audit and Management Assurances Tables

0
The Peace Corps :: performance and accountability report :: fiscal year 2011 123

Other Accompanying Information

The Peace Corps has no programs and activities that are risk-susceptible to “significant improper payments” as 

defined in the Improper Payments Information Act of 2002, Public Law No. 107-300, as amended by Public Law 

No. 111-204, Improper Payments Elimination and Recovery Act, or the implementing OMB Memorandum, M-11-

16, Subject: Issuance of Revised Parts I and II to Appendix C of OMB Circular A-123, Management’s Responsibility 

for Internal Control. No improper payments were identified this fiscal year through internal management review or 

by the external auditors that would meet the threshold of both (1) 2.5 percent of program outlays and $10,000,000 

of all program or activity payments made during FY 2011 or (2) $100,000,000 (regardless of the improper payment percentage of total program outlays).

Improper Payments Information Act

0
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Appendices

An Education Volunteer conducts a laboratory 

activity with students in Kenya. Students were given 

the opportunity to apply their knowledge of gaseous 

exchange in fish by dissecting and observing the gills.
126 The Peace Corps :: performance and accountability report :: fiscal year 2011

Appendices

Independent auditor Clifton Gunderson LLP, through the Inspector General, issued the FY 2011 financial statement 

audit report beginning on Page 99. This audit report did not identify any material weaknesses but did identify two 

significant deficiencies in internal control. Significant Deficiency 1, Controls over Property, Plant, and Equipment 

Need Improvement, consists of four audit recommendations shown in the table below, along with the estimated 

dates for resolution of the recommendations. Significant Deficiency 2, Information System Security Controls Need 

Improvement, consists of 22 audit recommendations shown in the table below, along with the estimated dates for 

resolution. Audit recommendations issued in prior years that remain unresolved are shown below as Prior Year (PY).

Significant Deficiency 1 – Controls over Property, Plant, and Equipment Need Improvement

Estimated

Audit Recommendations Completion

Ensure asset listings are complete; tag assets upon receipt; and record timely (PY) 2nd Qtr FY 12 

Perform accuracy, verification, and completeness checks on capitalized property 

listings; determine responsibility for managing and maintaining records of overseas 

IT assets (PY) 3rd Qtr FY 12

Develop procedures to ensure additions and disposals are recorded accurately and provide

timely disposal data (PY) 2nd Qtr FY 12

Implement timekeeping policies and procedures to track, capture, and 

record hours worked on capital projects (internal-use software in development and 

construction-in-progress) 4th Qtr FY 13

Significant Deficiency 2 – Information System Security Controls Need Improvement

Estimated

Audit Recommendations Completion

Fully integrate system configuration management procedures with agencywide 

configuration management plan 1st Qtr FY 13

Complete impact analyses, test plans, and test results for system changes prior to 

migration to production and maintain documentation 4th Qtr FY 12

Include methodologies for approving specific change types for all stages of the 

configuration management process, identifying the use of varying change types and 

the process flows 1st Qtr FY 13

Update change control policies to ensure that formal procedures for requesting, 

approving, coding, testing, and promoting are appropriately documented 4th Qtr FY 12

Complete formal risk assessments for all major applications and general support systems 4th Qtr FY 12

Develop/implement risk assessment review process to include frequency of reviews 

and updates 4th Qtr FY 12

Appendix 1

Summary of Audit Significant Deficiencies

0
The Peace Corps :: performance and accountability report :: fiscal year 2011 127

Appendices

(continued)

Estimated

Audit Recommendations Completion

Complete full certification and authorization for all information systems (PY) 4th Qtr FY 12

Complete/update/approve Manual Section 542, Information Technology 

Security Policies (PY) 1st Qtr FY 12

Document procedures for monitoring and security oversight of external systems 3rd Qtr FY 12

Develop/implement formal local and remote maintenance policies and procedures, 

including maintenance logging 4th Qtr FY 12

Re-evaluate/update agency Business Impact Analysis to ensure that it accurately 

represents the current environment and addresses deficiencies noted in disaster 

recovery tests (PY) 1st Qtr FY 12

Test all system Contingency Plans to ensure procedures for reconstitution and 

recovery of systems are adequate 4th Qtr FY 12

Provide guidance to posts regarding development of contingency plans and testing of 

scenarios to determine if reconstitution and recovery of posts systems are adequate 4th Qtr FY 12

Complete/update system security plans 4th Qtr FY 12

System Computer Security Coordinators review/update System Security Plans 

annually to ensure security requirements and controls are adequately documented 

and reflect current operating environment 4th Qtr FY 12

Implement formal procedures for requesting access to portable and mobile devices and 

include management approved access request forms documenting user’s approval and 

assigned device 2nd Qtr FY 12

Implement policies and procedures for portable and mobile devices that travel to 

locations deemed by the organization to be of significant risk 2nd Qtr FY 12

Develop a method to track assignments of portable and mobile devices by specific 

equipment identifiers and individual assigned 4th Qtr FY 12

Develop/implement procedures to ensure the timely return of portable and mobile 

devices and updating of equipment inventories to reflect current possession 2nd Qtr FY 12

Implement multifactor authentication for local access to privileged accounts, network 

access to privileged accounts, and network access to non-privileged accounts 4th Qtr FY 13

Periodically audit network user accounts, specifically (a) accounts not used in over 

90 days, (b) accounts that do not require passwords, and (c) accounts with passwords 

set not to expire (PY) 2nd Qtr FY 12

Maintain mandatory security baseline configurations for Microsoft Windows servers (PY) 3rd Qtr FY 12

 C(continu
128 The Peace Corps :: performance and accountability report :: fiscal year 2011

Appendices

Appendix 2

Glossary of Acronyms

0

*NIST SP 800-53

AC-2 Account Management*

AC-19 Access Control for Mobile Devices*

AVS Annual Volunteer Survey

BIA Business Impact Analysis

CG Clifton Gunderson LLP

CM-1 Configuration Management Policy 

and Procedures*

CM-2 Baseline Configuration*

CP-1 Contingency Planning Policy 

and Procedures*

DOL Department of Labor

DOS Department of State

DOVE Database of Volunteer Experience

EMA Europe, Mediterranean, and Asia

FDCC Federal Desktop Core Configurations

FECA Federal Employees Compensation Act

FISMA Federal Information Security 

Management Act

FMFIA Federal Managers’ Financial 

Integrity Act

FSN Foreign Service National

FY Fiscal Year

GDP Global Development Policy

HQ Headquarters

IA-2 Identification and Authentication*

IPBS Integrated Planning and Budgeting System

IRM Information Resources Management

IT Information Technology

MA-1 System Maintenance Policy 

and Procedures*

MA-2 Controlled Maintenance*

MA-4 Non-Local Maintenance*

MD&A Management’s Discussion and Analysis

MS Manual Section

NGO Nongovernmental Organization

NIST National Institute of Standards 

and Technology

NIST SP National Institute of Standards 

and Technology Special Publication

OCFO Office of the Chief Financial Officer

OCIO Office of the Chief Information Officer

OIG Office of Inspector General

OMB Office of Management and Budget

OMS Office of Medical Services

OPM Office of Personnel Management

OSIRP Office of Strategic Information, 

Research and Planning

PCR Peace Corps Response

PEPFAR President’s Emergency Plan 

for AIDS Relief

PII Personally Identifiable Information

PL-2 System Security Plan*

PMI President’s Malaria Initiative

PP&E Property, Plant, and Equipment

PSC Personal Services Contractor

RA-3 Risk Assessment*

SA-9 External Information System Services*

SOP Standard Operating Procedure

TEFL Teaching English as a Foreign Language

VDS Volunteer Delivery System
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