the peace corps

Performance and Accountability Report

Fiscal Year 2013
Paul D. Coverdell Peace Corps Headquarters

1111 20th Street NW, Washington, DC 20526

This report is available at www.peacecorps.gov/docs. 

Send comments or questions to www.peacecorps.gov/contactus 

or to the Peace Corps mailing address above.

December 16, 2013

The Peace Corps

Performance and

Accountability Report

Fiscal Year 2013
Where Peace Corps Volunteers Serve

Asia (EMA)

CambodiaChinaIndonesiaNepalPhilippinesThailand

Pacific Islands (IAP)

Federated States of Micronesia, and PalauFijiSamoaTonga

Vanuatu

North Africa andThe Middle East (EMA)

JordanMorocco

Latin America (IAP)

BelizeColombiaCosta RicaEcuadorEl SalvadorGuatemalaGuyanaMexicoNicaraguaPanamaParaguayPeru

The Caribbean (IAP)

Dominican RepublicEastern Caribbean:Jamaica

 Dominica Grenada St. Lucia St. Vincent/Grenadines

Africa

BeninBotswanaBurkina FasoCameroonEthiopiaGhanaGuinea KenyaLesothoLiberiaMadagascarMalawi

Eastern Europe/Central Asia (EMA)

AlbaniaArmeniaAzerbaijanGeorgiaKyrgyz RepublicMacedoniaMoldovaMongoliaUkraine

MozambiqueNamibiaRwandaSenegalSierra LeoneSouth AfricaSwazilandTanzaniaThe GambiaTogoUgandaZambia

Updated September 2013

Legend: EMA = Europe, Mediterranean, and Asia RegionIAP = Inter-America and the Pacific Region
i

Contents 

The Director of the Peace Corps II

Management’s Discussion and Analysis 1

Mission and Organizational Structure 2

Work of the Volunteers 4

Performance Highlights 15

Looking Forward 23

Analysis of Financial Statements 26

Analysis of Systems, Controls, and Legal Compliance 29

 Management Assurances 32

Performance Section 33

Introduction to Agency Performance 34

Strategic Goal 1 36

Strategic Goal 2 46

Strategic Goal 3 50

Strategic Goal 4 56

Strategic Goal 5 62

Evaluation and Research: Evidence for Decision Making 76

Financial Section 87

Message from the Chief Financial Officer 88

Financial Statements 90

Notes to the Financial Statements 95

Inspector General’s Audit Transmittal Letter 113

Auditor’s Report 116

Other Information 131

The Inspector General’s Statement on the Peace Corps’ 

 Management and Performance Challenges 132

Summary of Financial Statement Audit and Management Assurances 143

Improper Payments Information Act 144

Appendices 145

Appendix 1 – Status of Material Weakness and Significant Deficiencies 146

Appendix 2 – Glossary of Acronyms 149
ii

THE DIRECTOR OF THE PEACE CORPS

WASHINGTON, D.C.

On behalf of the Americans serving as Peace Corps Volunteers and our supporting staff across the world, it is my 

pleasure to present the Peace Corps Performance and Accountability Report for fiscal year 2013. This report 

conveys our commitment to sound financial and performance management, demonstrates the accountability 

and operational effectiveness of the agency, and shows the progress we have made in achieving our goals to the 

President, members of Congress, and the American people. 

Since the establishment of the Peace Corps in 1961 by President John F. Kennedy, more than 215,000 

Americans have served in 139 countries around the world promoting a mission of world peace and friendship. 

Our Volunteers accomplish that mission through three core goals related to community-based development and 

cultural exchange that have remained the same since the establishment of the agency.

Working alongside local partners, our Volunteers are making a difference in the communities where they 

live and serve by carrying out development projects with measurable results. They build strong personal 

relationships with their local community and, in doing so, promote a better understanding of Americans. When 

they return home, Volunteers bring new skills and global perspectives to share with their U.S. community and 

the American public. At the end of FY 2013, the agency had 7,209 Volunteers serving in 65 developing countries.

The Peace Corps advances its mission and supports the work of the Volunteers through evidence-based 

management. With a reduction in appropriated funding from $375 million in FY 2012 to slightly more than 

$356 million in FY 2013, we are committed to allocating our scarce resources to the places where we can have 

the greatest impact. Resource allocation decisions are informed by the Country Portfolio Review process, an 

annual agency review of the financial and Volunteer resources dedicated to specific country programs. 

Due in part to the Country Portfolio Review process, the agency made several strategic decisions regarding 

operations in multiple countries. In FY 2013, the agency closed the following programs: Antiqua/Barbuda, 

Bulgaria, Cape Verde, Romania, St. Kitts/Nevis, Suriname, and Turkmenistan. Also in FY 2013, the Peace 

Corps formally notified Congress of its intent to open programs in Kosovo and Vietnam. The agency signed 

a country agreement with the Government of Kosovo and anticipates Volunteers will arrive in FY 2014. The 

Peace Corps and the Government of Vietnam remain engaged in negotiations around a country agreement, 

but no final agreement has been signed to formally begin operations. In FY 2013, the agency made additional 

decisions to formally close the following programs in FY 2014: Honduras, where operations were suspended in 

FY 2012, and Palau. The anticipated reopening of the program in Tunisia in FY 2012 remains on hold due to the 

changing political and security landscape in country. The programs in Mali and Niger which were suspended in 

prior years remain suspended due to security issues. There has also been a significant reduction in operations in 

Ukraine.

The health, safety, and security of our Volunteers remain Peace Corps’ highest priorities. The Sexual Assault 

Risk Reduction and Response program, mandated by the Kate Puzey Peace Corps Volunteer Protection Act 

of 2011, was developed according to best practices in the field of sexual assault. It was built in consultation 

with post field staff, Volunteers, and nationally recognized experts and includes recommendations from the 

Department of Justice, the Rape, Abuse and Incest National Network, and the agency’s newly developed Sexual 

Assault Advisory Council. As such, the agency has established significant new policies and practices that reflect 

its strong commitment to reducing risks for Volunteers and responding effectively and compassionately to 

those who are victims of sexual assault and other crimes. The final stages of our Sexual Assault Risk Reduction 

and Response program were formally launched on September 1, 2013. This program reflects our ironclad 

commitment to supporting the physical and emotional well-being of Volunteers. 
iii

The Focus In/Train Up strategy continues to improve our Volunteer training and program support by providing 

Volunteers the skills and tools needed to assist their communities in implementing the projects that have 

proven to be most effective at achieving development results. Monitoring and evaluation efforts remain critical 

elements of the Focus In/Train Up strategy in order to continue to achieve best results. We are well on our 

way to optimizing our global impact to meet today’s development challenges while continuing our tradition of 

service. 

We continue to expand our partnerships with other U.S. government agencies, notably the U.S. Agency for 

International Development and the Department of State, international nongovernmental organizations, 

multilateral institutions, and corporations. Working across government, the agency has become a critical 

implementing partner for several of the President’s key development initiatives, including the President’s 

Emergency Plan for AIDS Relief (PEPFAR) and Feed the Future. The implementation of the Global Health 

Service Partnership—a collaboration of the Peace Corps, PEPFAR, and the nonprofit Seed Global Health—

presented an opportunity for American physicians and nurses to make a real difference in communities abroad 

by helping to address the known shortage of skilled physicians, nurses, and clinical faculty in resource-limited 

countries. That opportunity culminated on July 18, 2013, when 30 U.S. doctors and nurses were sworn in at 

the White House to serve one-year assignments as medical or nursing educators in Tanzania, Malawi, and 

Uganda as the first class of Peace Corps Global Health Service Partnership Volunteers. We will continue to be a 

champion of the whole of government approach to the U.S. government’s development initiatives. 

Notable progress was made on several performance goals in FY 2013, including ensuring the safety and 

security of Volunteers through the implementation of key safety and security reforms; recruiting Volunteers 

from under-represented populations to better reflect the diversity of America; ensuring the effectiveness of 

in-country programs through improved collaboration with local partners in project design, implementation, 

and evaluation; increasing the effectiveness of the technical training provided to Volunteers through the Focus 

In/Train Up strategy; increasing the opportunities for returned Volunteers to share their experiences in the 

United States. In FY 2014 and beyond, the agency will institute reforms to improve progress on those goals 

where adequate progress was not made, such as recruiting the number of Volunteers requested by posts and 

demonstrating the impact of Volunteers’ skills transfer and capacity-building work.

For the seventh consecutive year, independent external auditors rendered an unmodified (clean) audit 

opinion on the financial statements of the Peace Corps. Challenges remain, though, in strengthening areas 

of our administration of internal controls with regards to information technology and financial reporting as 

well as some of the management and performance challenges issued by the Inspector General. My qualified 

management assurance statement along with that of the chief financial officer provides reasonable assurance 

that the internal controls over financial reporting and financial management systems meet the specified 

objectives in the Federal Managers’ Financial Integrity Act (FMFIA) of 1982 as shown in the FY 2013 Annual 

FMFIA Assurance Statement in Management Assurances. 

Our success in financial and performance reporting accountability was recognized by a sixth awarding of the 

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

agency’s FY 2012 Performance and Accountability Report. The agency also received a second distinguished 

“Best in Class” award for the most comprehensive and candid presentation of forward-looking information in 

the 2012 report.

The financial and performance data presented in this report are fundamentally complete and reliable in 

accordance with guidance from the Office of Management and Budget.

Financial management improvements put into operation during FY 2013 and planned future improvements are 

shown in the Message from the Chief Financial Officer in the Financial Section of this report. 
iv

I am proud to lead the thousands of Volunteers who serve in the Peace Corps every year, helping our partner 

nations to achieve their development goals and working to promote mutual respect and understanding between 

the American people and the people in developing countries around the world. I am inspired by our Volunteers 

and all of the hardworking staff of the Peace Corps who dedicate their lives to helping others. By building strong 

relationships with people in communities around the world, the Peace Corps ensures that they share our 

values, form positive perceptions of the United States, and want to engage our nation and the world. It is such a 

privilege to serve our country in this role. 

 Sincerely,

Carolyn Hessler-Radelet, Acting Director

December 13, 2013
MANAGEMENT ’S DISCUSSION AND ANALYSIS
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2 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Mission and Organizational Structure

The Peace Corps mission is to promote world peace and friendship through community-based development 

and cross-cultural exchange. The agency exemplifies the best of the American spirit by making it possible for 

Americans to volunteer their time to advance development and build cross-cultural understanding around the 

world. Through this unique approach to development, the Peace Corps is making a difference in the overseas 

communities it serves, in the lives of its Volunteers, and back home in the United States. 

The Peace Corps Act (1961) articulates three core goals that continue to guide the 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.

The Peace Corps advances its mission through the work of Volunteers, both during and after their term 

of service. Volunteers live and work in local communities and ensure the sustainability of their efforts by 

transferring their skills to their partners. They also build life-long friendships with local people, promoting 

a better understanding of Americans. When they return home, Volunteers bring back a new set of skills, 

knowledge about different cultures, and long-lasting relationships. Returned Volunteers continue their service 

by promoting awareness of other cultures and global issues with friends, family, and the American public and by 

demonstrating a sustained commitment to volunteerism and public service.

The organizational structure chart follows.
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

3

Director ce of Congressional Relations

ce of Innovation

Deputy Director

Senior Advisor

White House Liaison

ce of 

Health Services

ce of Strategic 

Information, Research 

ce of 

and Planning

Third Goal 

and Returned 

Volunteer Services

ce of 

Communications

ce of Volunteer 

Recruitment and 

Selection

ce of Safety

and Security

ce of Global 

Operations

Chief Compliance

cer

Executive Secretariat

ce of Civil Rights

and Diversity*

ce of Management

ce of Acquisitions 

and Contract 

Management*

Europe, 

Mediterranean, and 

Asia Region

Africa Region

ce of 

Programming and

Training Support

ce of Global 

Health and HIV

Peace Corps 

Response

Inter-America and 

c Region

Chief of Staff

ce of the 

Chief Information 

cer

ce of the Chief 

cer*

ce of Strategic

Partnerships

Overseas 

Posts

Overseas 

Posts

Overseas 

Posts

ce of Victim Advocacy

ce of

General Counsel

ce of

Inspector General

* In their functions as Chief Financial Officer, Office of Civil Rights and Diversity Program Manager, and the Chief of Acquisitions and Contract Management, the incumbents report directly to the Director. 
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4 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Work of the Volunteers

The Peace Corps provides development assistance to host countries through the work of thousands of dedicated 

Volunteers around the world.

A total of 7,209 Volunteers and trainees were serving 

in the Peace Corps as of September 30, 2013. This 

includes 801 Volunteers and trainees funded by 

the President’s Emergency Plan for AIDS Relief 

(PEPFAR) and 184 Volunteers serving in the Peace 

Corps Response Program (www.peacecorps.gov/

response). The number of Volunteers fielded each year 

depends on host country requests and the agency’s 

ability to effectively support Volunteers in the field. 

The Peace Corps’ Unique Approach 

to Development 

Instead of providing monetary assistance to countries, the agency sends Volunteers to countries that have 

requested technical assistance. Volunteers share their skills and experience with local people and communities 

by living and working alongside community partners and beneficiaries. The day-to-day interaction between 

Volunteers and local partners builds mutual trust and understanding. This enables the Peace Corps to 

contribute to host country development efforts while also promoting a better understanding of Americans. 

The Peace Corps only operates in countries that have formally requested the presence of Volunteers from the 

U.S. government. Once an agreement has been reached 

with a host country, the agency develops Volunteer 

projects in collaboration with host country government 

agencies, development organizations, communities, 

and individuals. Volunteers work with local partners 

to identify community needs and implement activities 

designed to leverage their unique skills and experience 

to address community priorities and needs.

The agency recruits and fields Volunteers with the 

skills, experience, maturity, and interest to work, 

often under conditions of hardship, to solve local 

development problems. Volunteers typically serve 

for 27 months, which includes approximately three 

months of pre-service training in the host country 

and 24 months of Volunteer service. They subsist on 

a minimal living allowance that provides a standard of 

living similar to that of the local people with whom they live and work.

While Volunteer projects vary across the world to reflect local needs, they fall within six programmatic 

sectors: Agriculture, Community Economic Development, Education, Environment, Health, and Youth in 

Development. 

Number of Volunteers

Volunteers

7,810 7,749 8,079 7,876 7,671

8,655 9,095

8,073

7,209

0

2000

4000

6000

8000

9000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Percentage of Volunteers by Sector

Education

40%

Environment

12%

Health

22%

Community 

Economic

Development

11%

Agriculture

5% Youth in

Development

7%

Other

3%
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 5

Agriculture

Volunteers: 354 (5 percent)

Countries: 10 

Project Areas: Agricultural Production and Improved Cultivation 

Practices, Productivity, Markets, Resilience and Stability 

Sector Overview: Volunteers in the agriculture sector collaborate with 

community members, nongovernmental organizations, and communitybased organizations (such as farmers’ groups, women’s associations, or 

youth clubs) to improve basic agricultural practices, intensify the value 

and volume of agricultural products, increase income and access to goods, 

and improve household stability. Through this work, Volunteers also help 

communities adapt to deteriorating environmental conditions, such as a 

changing climate.

Volunteers help improve the long-term productivity of farmers’ fields by teaching and demonstrating 

environmentally sustainable and organic farming practices, including crop diversification, agroforestry, small 

animal husbandry, and soil and water conservation and management. Volunteers work side by side with local 

farmers on their field crops, testing new varieties, and promoting family and school vegetable gardens to 

encourage the production and use of more nutritious foods and to strengthen household food security.

Volunteer Voice: Composting in Panama

In the mountains of one of Panama’s indigenous territories, farmers rely on slash-and-burn agriculture 

for the production of basic grains and tubers. With increasing population pressures leading to 

shortened fallow periods and deforestation, they are faced with low crop yields and increasingly rely 

on expensive chemical fertilizers to support their families, resulting in negative environmental, health, 

and economic impacts.

So, when I arrived at site, farmers were eager to learn more about how they could use free and local plant 

waste to create organic fertilizer through composting. Several farmers attended my first lecture about 

how to make compost. While they came to learn more about composting, few of them were interested in 

putting together their own compost pile without first seeing results of increased crop yields.

One family was different. Niko invited me to his house to make a compost pile of his own. Early one 

Sunday morning, I arrived to find him waiting for me with sacks of cow manure and rice husks, some 

squash and wood ash, and a few banana trunks. We chopped everything with machetes, mixed the 

material together, and covered the pile with banana leaves and plastic. Over the next few weeks, he 

continued to mix his pile and updated me on how it was rotting, until one Sunday he invited me back 

as he applied it to the corn in one parcel of his farm that historically has had soil fertility problems 

and low yields. While Niko enthusiastically accredited this year’s good corn crop to this little bit of 

compost, I still had low hopes of composting being more widely adopted throughout the community. I 

had to wait a few months to see the larger impact of our work.

By the beginning of the rainy season, Niko’s family was back at their compost work, modifying the 

original recipe based on their experiences with the first pile, their available resources, and our 

conversations over the last few months. They were soon innovating, telling me which native trees’ leaves 

would decompose into the richest soil. The family combined the small amount of composting instruction 

I provided with their years of local knowledge to come up with a local solution to their problem.

Based on the family’s composting skill, I was a slightly confused when Niko’s brother approached me 

to ask if I could help him make another compost pile. He listed the materials he planned to collect and 

then added, “And I’d like to invite the other families that you work with to come see how I do it. So, they 

will learn for themselves.” I could not have been more surprised. Nearly one year after we first came 

together, a counterpart was asking me to help him teach his neighbors what he had learned and come 

to value. Niko’s family has become more than skilled composters. They are now promoting composting 

to their neighbors to improve the community. 
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6 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Volunteers also build the business skills of small-scale farmers to increase income and access to food. 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 to develop new value-added products.

Selected Activities in Agriculture: 

• Master farmer program in Senegal: A training of trainers model has been adopted in which Volunteers 

coordinate a master farmer program. In groups, lead farmers were trained on improved agricultural 

methods and the introduction of high-yield varieties of beans, corn, rice, and sweet potatoes. Five of 

these trained master farmers then organized open field days attended by more than 300 farmers from 50 

communities.

Community Economic Development

Volunteers: 820 (11 percent)

Countries: 34

Project Areas: Organizational Development, Personal Money 

Management, Business Development 

Sector Overview: Volunteers in community economic development 

projects support organizational development, promote business 

development, and facilitate improved access to credit and money 

management. Volunteers train and advise local entrepreneurs, 

communities, and organizations in business planning, marketing, financial 

management, product design and distribution, and customer service. 

Often, Volunteers provide trainings on community economic development 

topics through workshops, courses, camps, and competitions for youth. 

Through these projects, local people, communities, and organizations 

build their skills in launching or expanding businesses ranging from small-scale agribusiness (fruits, vegetables, 

and small livestock) to ecotourism ventures or handicrafts. Some of the activities focus on helping members of 

disadvantaged groups such as orphans, at-risk youth, and victims of trafficking learn new skills so they can enter 

the workforce.

Volunteers work with microfinance institutions to expand their outreach to potential clients. In communities 

with few formal banking services, Volunteers work with community members to set up and manage their own 

savings-led microfinance associations. Volunteers also provide financial literacy training to youth and adults 

regarding budgeting, savings, financial negotiations, and the safe use of credit.

At an organizational level, Volunteers’ work focuses on strengthening capacity to improve governance, strategic 

planning, organizational management, project management and leadership, public awareness, fundraising, and 

advocacy. 

Volunteers help coordinate overall community economic development by fostering collaboration among 

governments, organizations, businesses, communities, and individuals. 
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 7

Volunteer Voice: 

Connecting silk producers with resources in Thailand

One of my favorite parts of my service is the weekly trip with municipal officials to visit small vendors 

participating in the One Tambon One Product program. During one of these trips, we visited an eri silk

production business. After speaking with the owner, I realized that the business was inactive because 

the supplier of the silk worms had stopped providing them with enough worms for the business. The 

business would likely still have been operating if they had an adequate supply of worms—the owner 

was a hard-working and dedicated woman and they already had the necessary equipment, food for the 

worms, and 15 part-time employees dedicated to the effort.

After the trip, I contacted a research program at a university in country that had been working on 

promoting dyed, organic silk. They were excited to help and over the next two weeks, we organized 

and held a seminar for 60 people who were either in the eri silk business or interested in becoming a 

producer. The educational material that the university provided was effective. Several new people 

indicated an interest in starting a silk business. The university gave them the worms as long as they 

could demonstrate that they could provide food (mulberry trees). 

The original eri silk business I visited was able to resume operations with this new supply of worms. They 

now not only offer shawls for sale, but also other products such as shampoo, soap, conditioner, and snacks.

The business owner was thrilled with the growth of her business, and the university staff was happy 

to have discovered and solved the supply problem. I was happy to have helped the business owner and 

the broader community, and also honored to have been chosen to be on the research coordinating 

team for the university.

Selected Activities in Community Economic Development: 

• Implementing an entrepreneurship curriculum in Namibia: After Volunteers were assigned to 

Namibian schools to improve the implementation of the Ministry of Education’s entrepreneurship 

curriculum, principals at eight of the schools reported a 75 percent or higher pass rate in the national Grade 

10 examination, compared to 40–50 percent the previous year. 

• Building organizational capacity to combat human trafficking in Moldova: Volunteers and partners 

organized a weeklong “Freedom Festival” to raise awareness of human trafficking. The event included 

roundtable discussions, a social theater performance, a concert, workshops, seminars in schools, flier 

distribution, and surveys.

• Improving production and sales in Senegal: Volunteers’ collaboration with Swahili Exports, an 

international company, resulted in the creation of hundreds of jobs for women in 14 villages, bringing more 

than $100,000 to the households in a three-month period. Sales have increased from one 40-foot container 

full of merchandise each quarter to one each month.
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8 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Education

Volunteers: 2,883 (40 percent)

Countries: 53

Project Areas: Teaching English as a Foreign Language; Childhood 

Literacy; Gender Empowerment; Math, Science, and Information 

Communication Technology 

Sector Overview: Education Volunteers build teaching and learning 

capacities across a range of subjects, including English, math, science, 

information technology, and childhood literacy. They work at all educational 

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

and teacher training colleges. Volunteers provide either direct instruction or 

collaborate with local teachers. 

Volunteers build the skills of local teachers by holding workshops that 

focus on participatory and experiential learning, classroom management, and resource development. They 

promote strong parent-teachers associations and community involvement in education. Through their work in 

the classroom and in after-school activities, Volunteers work with partners to better prepare students for their 

active participation as global citizens.

Recognizing the tremendous potential that local women represent in developing their own communities, 

Volunteers in the education sector, as well as those working on other projects, promote gender-equitable 

practices, connect young girls with local role models, and build life skills and leadership. Volunteers serve as 

strong role models in their communities, providing encouragement and highlighting local opportunities for 

youth. 

Selected Activities in Education:

• English textbook development in Nicaragua: The Nicaraguan Ministry of Education requested the Peace 

Corps’ assistance in reviewing and editing the English textbooks recently developed by the government for 

every high school student in the country. A task force of 11 Volunteers conducted a thorough review of the 

textbooks and recommended grammar and vocabulary edits. They also identified how the English activities 

in the textbook could be improved. As a result of the collaboration between the Ministry of Education and 

the Peace Corps, every high school student in the country will be better equipped for successful language 

learning.

• Test-taking skill development in Ukraine: Over 300 Volunteers organized clubs to train more than 4,500 

students for English competitions such as the English language olympiads and essay competitions. Volunteers 

focused on building students’ vocabulary and practicing and improving auditory and writing skills. The clubs 

exposed students to the American cultural perspective of test taking, essay writing, and answering abstract 

questions.
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 9

Volunteer Voice: Teachers’ book club in The Gambia

Worldwide, Peace Corps volunteers in education are tackling problems in literacy. The lack of resources 

is a perennial challenge that pushes many Volunteers to start libraries. I was fortunate enough to be 

placed at a school where a library already existed, so my challenge was getting my school to use the 

resources available.

Ultimately, my aim was to get books into children’s hands. It is common knowledge that students who 

have consistent interaction with print and opportunities to read acquire literacy faster than those who 

do not. However, realizing that the teachers at my school had never received those opportunities, I knew 

that I had to start with them before I could reach the children. Thus, a teachers’ book club was born.

The book club began at the start of the school year. The teachers were invited to read children’s 

literature on a voluntary basis. I asked them to fill out reports on what they read; these required a 

brief summary of the book and ideas on how the book could be used in the classroom. Incentives were 

provided to encourage participation. The intention of the club was to increase teachers’ awareness 

of children’s literature, to encourage them to use books in their lessons, and to serve as a model for 

teachers to create their own student book clubs within their classrooms.

From September to February, the participation rate was disappointing as only a handful of teachers 

had participated. I quickly realized that I needed to make changes to the club. Instead of filling out 

reports, I asked teachers to sit down, read a book with me, and discuss ways we could incorporate 

the book into lessons or what they would want a child to understand from reading the book. This was 

sometimes one-on-one, but more often in small groups. Having the teachers read with me created 

opportunities for them to build their fluency and for me to model using intonation when reading aloud. 

We also set clear goals for ourselves. I informed the teachers that I wanted to read 50 books with them by 

the end of March, and asked if they would like to set goals for themselves as well. Within the first two weeks 

of March, I surpassed my goal quickly, and the teachers were making progress on theirs. The teachers found 

that as they sat down and read, they gained new vocabulary and learned print conventions at each reading 

session. I began to see a shift in their motivation to read. By the end of March, I had read 87 books with the 

teachers, and all but one teacher had met the goals they’d set for themselves.

At one point during the month of March, a teacher came to me with a book called “Pup and Pop Shop.” 

The text read, “He sniffs.” The teacher wanted to know what “sniff” meant. We looked at the picture and 

discussed other words that could replace sniff. Satisfied with his understanding he went on with his 

day, but later came back to speak with me. He said, “You know, Isa, I realized I would have never known 

the word ‘sniff’ had I not read that book. I need to read more.” I no longer had to give my teachers a 

reason to read. They found it for themselves. It doesn’t get much more sustainable than that!
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10 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Environment

Volunteers: 854 (12 percent)

Countries: 26

Project Areas: Environmental Education and Awareness, Natural 

Resource Planning and Management, Economic Strengthening 

Sector Overview: Volunteers in the environment sector collaborate 

with host country partners to respond to deteriorating local conditions 

by promoting environmental education and awareness, facilitating 

natural resource planning and management, and supporting economic 

strengthening activities. 

Environment Volunteers demonstrate and teach healthy conservation 

practices, including the production and cultivation of trees to improve 

soils, conserve water, and protect fields from erosion. Effective 

management of resources requires the cooperation of local governments, organizations, communities, and 

individuals. Volunteers work to build the organizational capacity of these partners to plan, manage, lead, and 

advocate for the protection of the local environment.

Volunteers also help support environmentally sustainable, income-generating activities that create incentives 

for the conservation of natural resources. These activities may include the promotion of ecotourism and crafts.

Volunteers are also engaged in environmental education within schools to build awareness and initiate action 

on environmental issues. Volunteers train teachers to integrate more interactive teaching methods focused 

on the environment into their curriculum. In addition to these formal settings, they collaborate with schools 

and other organizations to promote environmental education through clubs, youth camps, and awareness 

campaigns.
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 11

Volunteer Voice: Improved cook stoves in Nicaragua

Anyone who comes to Nicaragua will immediately notice that the country has a problem with 

deforestation. Big, beautiful trees stand in small strips surrounded by corn fields and empty spaces 

where cows graze. The mountains occasionally have a patch or two left of trees, but those will soon be 

cut down to plant more fields. The land that no longer works well for agriculture sits empty and ignored. 

It is sometimes used for cows, but more often, it is abandoned and filled with brush and a few stunted 

trees. The deforestation problem is exacerbated by the change in the local climate. The rainy season is 

shorter than it has been in the past as the water table gets lower each year. 

As a Peace Corps Volunteer, seeing a problem of this magnitude is daunting. A vast majority of the 

population in Nicaragua cooks with wood fire, so any young, new trees are immediate prey for the 

firewood search. However, any problem must be addressed one step at a time, and I feel that, at least in 

my community, we are taking a step to protect the future of the area. We have begun building a type of 

stove that uses up to 70 percent less wood. Additionally, the entrance for the wood is small, making the 

stoves more suitable for fallen sticks and branches than larger cut trunks of trees.

At first, the women of my community were quite skeptical. They didn’t believe for a moment that such a 

small amount of wood could actually create enough heat to cook. I heard over and over again that the 

stoves were wonderful, if they could just be made larger to cram in more wood. However, after building a 

demonstration stove in the children’s cafeteria, a few women were convinced to try it out. 

We built a few preliminary stoves, and before long, word had spread that the stoves worked! Community 

members talked about how much less wood it used, but also, due to the chimney, cook fires released 

much less smoke into the kitchen. Pretty soon, women from all over town were coming to me asking me 

to include them in the stove project.

Nonprofit organizations have come from other communities to learn the design of the stove so that they 

can build it in their own communities. Although changing habits is difficult, the majority of the people 

I worked with use and love the improved cook stoves. The stoves have drastically cut down their wood 

consumption, as well as improved their health and the health of their children. 

Selected Activities in Environment:

• Soil and water conservation in Ghana: A Volunteer organized the distribution of 11,000 vetiver plants to 

serve as a hedgerow along an earthen dam. Vetiver is perennial grass known to aid in erosion control and soil 

stabilization. With the help of several other Volunteers, small community working groups gathered to plant 

the vetiver to conserve water and soil along the dam.

• Climate change education in Peru: A Peace Corps Response Volunteer working with the Ministry of 

Education designed an environmental education program that trains teachers in developing environmental 

curricula on climate change and climate change monitoring. This led to a national competition that awards 

the best school in promoting environmental and climate change education. The program has grown 

throughout Peru, and many teachers have now been trained on how to teach this topic in the classroom.
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12 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Health

Volunteers: 1,603 (22 percent)

Countries: 43

Project Areas: HIV Mitigation; Environmental Health; Maternal, 

Neonatal, and Child Health; Life Skills for Healthy Behavior 

Sector Overview: The Peace Corps’ approach to global health issues 

includes improving knowledge about common diseases and health issues, 

promoting behavior change, and building capacity among community 

members, community-health workers, and grassroots organizations to 

prevent and mitigate the major causes of morbidity and mortality. 

The most common types of health projects include HIV/AIDS education, 

basic sanitation and hygiene education, nutrition, youth sexual and 

reproductive health education, and malaria prevention and control. 

Volunteers collaborate with local partners, introducing innovations and technology to leverage resources to address 

health needs in communities with the least access to health information and services. In order to carry out their 

work, Volunteers are frequently assigned to health-related non-governmental organizations to help increase their 

technical, managerial, and administrative capacities. 

HIV mitigation is a major agency effort, globally and across sectors. Volunteers often work on HIV/AIDS 

prevention and care as part of a comprehensive community health project. Behavioral prevention support 

continues to be at the center of Volunteers’ HIV/AIDS prevention work, particularly when targeting youth. 

The Peace Corps is an active partner in the President’s Global Health Initiative, notably the President’s Emergency 

Plan for AIDS Relief (PEPFAR), Saving Mothers Giving Life, and Feed the Future. The agency also collaborates with 

the President’s Malaria Initiative through the Stomping Out Malaria in Africa campaign (http://stompoutmalaria.

org), a Peace Corps initiative to fight malaria in the communities where Volunteers serve, partner with other 

organizations to defeat malaria in target countries, and foster the development of an international malaria 

prevention community. 

Volunteer Voice: Mobile media health campaign in Kenya

In many rural communities in Kenya, there is a lack of access to accurate health information. Frequently, 

accurate health information exists, but it is inaccessible to many people due to language, technology, 

and literacy barriers. Often, health information is either conveyed inaccurately by outreach workers or 

not disseminated due to the absence of financial or other incentives. 

In response, I developed and produced Afya Mfukoni (Health in the Pocket)—a series of short films that 

addressed a variety of health topics including HIV, reproductive health, and family planning. The films 

were based on dramas by local youth groups as well as original scripts. Mobile phones are accessible to 

almost all of the Kenyan population, so I released the films in various formats which allowed playback on 

various media, including mobile phones, personal computers, and DVD players. 

The Afya Mfukoni mobile media campaign has increased access to accurate health information by 

addressing a number of issues. The films are provided in Kiswahili and local languages to overcome 

language and literacy barriers. The release of films in multiple, easy-to-share formats, takes advantage of 

modern technology and allows for viewing in a variety of settings. Particularly, the use of mobile phones 

as a means of sharing and viewing the films has made it possible to reach a wider audience in rural Kenya. 

Local community members were involved in the production, and we shot the films in normal, familiar 

settings. This helped garner interest among the involved communities while helping to ensure that the 

audience can see themselves in the films. Given the portable and shareable nature of the films, Kenyans 

are increasingly viewing the films multiple times and sharing them with others. The campaign has been 

successful in that it is providing accurate health information to a growing audience.
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 13

Selected Activities in Health:

• Nutrition education in Tanzania: Volunteers and their counterparts trained 1,570 girls and women on 

optimal nutrition practices for maintaining a healthy family. By hosting food preparation demonstrations, 

the girls and women were empowered to create healthy meals with locally available, affordable food items.

• Exercise and healthy living promotion in Fiji: Volunteers worked with the Fiji National Wellness Center 

and local musicians to carry out Fiji’s first “flash mob” to promote 30 minutes of exercise a day and kicking 

off a national campaign, “Let’s Move Fiji!” More than 1,000 people attended the event to dance for more 

than two hours and learn about ways to integrate healthy practices into their daily lives.

• Grassroot Soccer partnership to reduce HIV risky behavior in Africa: The partnership between 

Grassroot Soccer and the Peace Corps incorporates sports and physical activities with life skills education 

for youth in a 10-week program. Volunteers work with local partner coaches to educate young people about 

HIV and reduce risky behavior. 

Youth in Development

Volunteers: 511 (7 percent)

Countries: 18

Project Areas: Healthy Lifestyles, World of Work, Civic Engagement, 

Support for Youth

Sector Overview: Peace Corps Volunteers in all sectors are trained 

to engage youth to enhance the impact of their projects. As such, 

approximately three-fourths of all the people with whom Volunteers work 

are young men and women under the age of 25. 

In addition to constituting a theme that cuts across all sectors, Youth 

in Development is also one of the Peace Corps’ six programmatic 

sectors. Volunteers work with young people, families, communities, and 

organizations to support healthy lifestyle choices related to sexual and 

reproductive health, physical activity, and substance abuse prevention. They also prepare youth for work 

with financial literacy and vocational skills, engage youth as active citizens, and build support structures 

among parents, family members, and communities. Volunteers work in schools, youth centers, communities, 

camps, and clubs, often with individuals in challenging situations, including those living in institutions, 

orphaned and vulnerable due to HIV/AIDS, and/or out-of-school young people. 

Selected Activities in Youth in Development:

• Life skills and leadership summer camps in Burkina Faso: More than 200 students participated in 

the inaugural year of Camp GLOW (Girls Leading Our World), a skills and leadership program that has 

supported the empowerment of girls in more than 60 countries. Participants in the camp engaged in a wide 

range of activities that focused on gender awareness, including sports, crafts, health, and life skills.

• Alcohol/Substance abuse prevention in the Dominican Republic: Volunteers are helping a group of 

young people produce and film a soap opera titled “Me Toca a Mi (It’s My Turn).” The soap opera episodes 

support good decision making though situational discussions of substance abuse, relationships, and HIV/

AIDS prevention.
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14 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

• Positive youth development with service providers in Thailand: Volunteers organized a three-day 

Youth-Serving-Youth conference. This conference encouraged young people and adults to think about the 

role of youth as community leaders and how they can become more active citizens. Sessions included how to 

work with youth, team-building activities, community project planning, and the development of community 

action plans.

Volunteer Voice: Summer camp for children 

with disabilities in Azerbaijan

Impoverished children living with disabilities in Azerbaijan are segregated, disregarded, and resigned to 

live life without education, support or opportunity. Lack of disability-care knowledge, extremely limited 

funds, strict gender roles, and no support or outlet for stress can be overwhelming and stressful. The 

Peace Corps’ summer camp, called Hello, World! We Exist, Too!, provides a safe and relaxing environment 

for these children and their mothers in which they can play and learn. It empowers children living with 

disabilities and their families through education and support.

In developing the camp, I worked with my counterparts from the Ismayilli Center of Support to Children 

and Families on the curriculum; they also purchased all of the supplies. Several local nongovernmental 

organizations collaborated to develop training materials on first aid and emotional well-being. We also 

used the dental hygiene and nutrition trainings that I created last year.

The camp was a huge success! Twenty-two children and 18 family members, including mothers, 

attended the camp. Employees from local government agencies and local Azerbaijani volunteers helped 

implement camp activities. It was obvious by the end of camp that new bonds and friendships had been 

formed between the children, mothers, and even the Azerbaijani volunteers and employees. The mothers 

and children were attentive during trainings and eager to discuss what they had learned afterward. 

Regional government agencies will follow-up with participants in the camp when the children and 

mothers come to see them at their offices. 
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 15

Performance Highlights

In FY 2013, the Peace Corps continued to make progress on key goals to advance its mission and better support 

Volunteers in the field. Performance improvement is due in large measure to a sustained commitment from 

agency leadership and staff to the use of data and evidence in decision making and to the development of 

innovative approaches to solving persistent problems.

Performance Management System

The goals and indicators in the FY 2009-2014 strategic plan (http://files.peacecorps.gov/multimedia/

pdf/policies/pc_strategic_plan_081409.pdf) form the basis for the agency’s performance management 

system. Through quarterly performance reviews chaired by the chief operating officer and supported by the 

performance improvement officer, senior officials and managers regularly plan, monitor, and evaluate efforts 

to achieve progress on agency goals. The strategic plan is also implemented at the office and overseas post-level 

through operating and work plans through the Integrated Planning and Budgeting System (IPBS). The Peace 

Corps’ performance management system is rooted in an inclusive and participatory culture in which staff and 

Volunteers at all levels are invested in improving the agency. 

The Peace Corps FY 2009-2014 Strategic Plan

Mission: To promote world peace and friendship

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.

Strategic Goal 1

Enhance the 

capacity of 

host country 

individuals, 

organizations, and 

communities to 

meet their skill 

needs

Strategic Goal 2

Promote a better 

understanding 

of Americans 

on the part of 

host country 

individuals, 

organizations, 

and communities 

served by 

Volunteers

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

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

Strategic Goal 4

Provide 

Volunteers 

who represent 

the diversity of 

Americans to 

meet the evolving 

technical needs of 

host countries

CORE GOALS:
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16 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

FY 2013 Performance at a Glance

The FY 2013 Performance at a Glance section features the performance results of key performance goals and 

indicators related to the agency’s five strategic goals. Detailed information on the results for all 40 indicators as 

well as the agency’s validation and verification standards for each data source are presented in the Performance 

Section. The benefits to the American public of the agency’s work under each strategic goal, notable 

accomplishments, and performance challenges are highlighted.

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

meet their skill needs

Volunteers ensure the sustainability of their development efforts by transferring their skills to local people. In 

doing so, Volunteers build the capacity of local individuals, organizations, and communities to address their 

development challenges. 

Public Benefit: When Volunteers build host country capacity, local conditions are improved and individuals 

and communities have the skills needed to solve their problems and serve as models for others. The American 

people benefit from a more stable and peaceful world.

Notable Accomplishments:

• Improved collaboration with local partners 

in project design, implementation, and 

evaluation (Indicator 1.1.1.a): For the past 

three years, the agency has seen a marked 

increase in the percentage of project 

managers who meet with Project Advisory 

Committees (PACs)—advisory groups 

comprised of agency staff, host country 

government officials, and local counterparts 

and work partners. The agency utilizes PACs 

to engage local partners throughout the 

entire cycle of a project, ensuring host 

country and community needs are effectively addressed through a structured project plan and supporting 

Volunteer activities. Improvement in this area is a direct result of the focus placed on PACs by the agency, 

including increasing the resources allocated to conduct PAC meetings and issuing additional guidance on how 

to operate successful PACs. 

• Continued implementation of the Focus 

In/Train Up strategy (Indicator 1.2.1.b):

The Focus In/Train Up (FITU) strategy 

supports the Comprehensive Agency 

Assessment (2010) recommendation that the 

agency “focus on a more limited number of 

highly effective technical interventions that 

will enable the Peace Corps to demonstrate 

impact and achieve global excellence” 
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 17

www.peacecorps.gov/open/evaluations. The FITU strategy is a major agencywide effort to more closely 

align programming with the technical interventions that can be effectively delivered by Volunteers and to 

improve the technical training the agency provides to prepare Volunteers for service. Significant progress 

was made on the FITU strategy in FY 2013, as all project frameworks were focused in this year and standard 

technical training packages have been developed for all sectors. With this achievement, all Volunteers who 

begin their service in FY 2014 will be trained to work on improved and targeted projects that more directly 

meet community needs. While the target for this indicator was not met in FY 2013, great progress was made. 

As more Volunteers go through the new FITU technical training packages, the agency expects Volunteer 

satisfaction with technical training to continue to increase. 

Performance Challenges:

• Demonstrating the impact of Volunteers’ 

work (Indicators 1.3.1.a, 1.3.1.b, 1.3.1.c):

The Peace Corps’ unique approach to 

development contributes to significant 

improvements in the lives of the individuals 

and communities where the Volunteers live 

and work as evidenced in the agency 

exceeding the targets on two of these three 

indicators. One challenge resides in 

qualifying and quantifying the tangible 

development results of Volunteers’ capacitybuilding and skills-transfer work. Volunteers 

consistently report that their work has 

transferred skills to host country individuals 

and organizations. However, data sources 

from multiple perspectives are necessary to 

fully demonstrate the impact of Volunteers’ 

work.

Moving forward, the agency will include 

specific goals in the FY 2014-2018 strategic 

plan related to the work of the Volunteers. 

This will be measured through the 

Volunteers who will report directly on 

their project activities. The agency will 

also expand a counterpart survey piloted 

in FY 2013 to all posts. The new agencywide survey will collect feedback directly 

from Volunteer counterparts, including 

supervisors and work partners, related to the 

impact of Volunteers. 

84% 88% 85% 86% 87% 88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

1.3.1.a Results

86% 91%

85%

97%

83% 88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011 FY 2012 FY 2013

1.3.1.b Results
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18 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

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

organizations, and communities served by Volunteers 

As Volunteers build local capacity through their work, they also develop deep friendships with local people. 

Through their interactions with individuals and communities, they dispel myths about Americans, promoting a 

better, more well-grounded understanding of one another.

Public Benefit: Host country individuals and communities that interact with Volunteers gain a more complete 

understanding of the United States and become more willing to engage with Americans. Volunteers also build 

strong relationships with local people that endure long after their term of service is completed.

Notable Accomplishments

• High performance on training for 

Volunteers and work partners on 

managing cultural differences (Indicators 

2.1.1.a and 2.1.1.b): The agency continued 

to provide quality training to facilitate an 

environment for Volunteers to successfully 

adapt to and navigate the complex cultural 

circumstances of life and work in another 

country. Training for Volunteers focuses 

on how to manage cultural differences 

to effectively live and work in local 

communities. Local counterparts, including 

supervisors and work partners, are trained 

on working effectively with Volunteers. 

This prepares counterparts to better 

support Volunteers as they adjust to cultural 

differences. The training also promotes a 

better understanding of Americans on the 

part of counterparts as they learn about 

cultural similarities and differences between 

themselves and Volunteers. Nearly all posts 

conducted supervisory and counterpart 

training in FY 2013, and the vast majority of 

Volunteers continued to report high levels 

of satisfaction with the training provided on 

managing cultural differences.

Performance Challenges:

• Collecting information directly and systematically from host country individuals, organizations, and 

communities on their perceptions of Americans (Indicator 2.1.1.c): The agency conducts Host Country 

Impact Studies to measure how effectively Volunteers are meeting the technical needs of host countries and 

promoting a better understanding of Americans. These studies provide a valuable source of information 

collected directly from host country counterparts, beneficiaries, and host families. While 24 of the studies 

have been completed since 2008, due to resource constraints, only a few studies are conducted each year. Host 

91% 92% 91% 90% 93% 93%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

2.1.1.a Results
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 19

Country Impact Studies were not conducted in FY 2013. This limits the agency’s ability to assess the impact of 

Volunteers worldwide year-to-year from the perspective of the people with whom Volunteers live and work.

The counterpart survey, piloted across all sectors and regions in FY 2013, will be fully operational in FY 2014 

and will provide ongoing information across all Peace Corps countries on the impact of Volunteers’ capacity 

building and cross-cultural exchange efforts directly from the perspective of counterparts. 

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

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

During their two years of service, Volunteers learn the languages, customs, traditions, and values of the people 

with whom they live and work. Volunteers bring the world back home by sharing their experiences with family, 

friends, and the American public both during and after their service. As a result, they deepen and enrich 

Americans’ awareness and knowledge of other peoples and cultures and global issues.

Public Benefit: As Americans gain a better understanding of other cultures, they develop skills in working 

successfully in a globalized world. This, in turn, helps to build a more competitive U.S. workforce. Americans 

also increase their interaction with overseas communities, contributing to the Peace Corps’ mission of 

promoting peace and friendship between people in the United States and other countries.

Notable Accomplishments:

• Significant increase in the number of 

educational institutions where returned 

Volunteers share their experiences 

(Indicator 3.1.2.b): The agency provides 

returned Peace Corps Volunteers with 

opportunities to talk about their Peace 

Corps service through multiple venues, 

including the Coverdell World Wise Schools 

Speakers Match program and the Coverdell 

Fellows program. The Speakers Match 

program connects returned Volunteers 

with K-12 schools and youth organizations 

to visit and share their experiences. The 

Coverdell Fellows program works with graduate programs in colleges and universities across the country to 

provide returned Volunteers with the opportunity to earn a graduate degree and to continue their service 

in an underserved community in the United States. The agency made gains in this area by making it easier 

for potential partners to participate in the Coverdell World Wise Schools Speakers Match program through 

an improved website (www.peacecorps.gov/wws). Improvement is also due to increased staff resources for 

the program and to the aggressive marketing and promotion of Peace Corps Week (www.peacecorps.gov/

resources/returned/thirdgoal/pcweek). 

-

502

829

920

656

1,485

 -

 200

 400

 600

 800

 1,000

 1,200

 1,400

 1,600

FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013

3.1.2.b Results
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20 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Performance Challenges:

• Low participation among currently-serving 

Volunteers in the Coverdell World Wise 

Schools/Correspondence Match program 

(Indicator 3.1.1.a): The Correspondence Match 

program connects currently-serving Volunteers 

with youth and educators in the United States. 

Through this program, Volunteers share with 

American classrooms the customs and cultures 

of the communities where they live and work. 

Over the span of the current strategic plan, the 

agency has identified a gap between the number 

of Volunteers and educators enrolled in the 

Correspondence Match program and the number 

of Volunteers who actively participate in the program. This year, the agency’s Leadership Development 

Academy, a 12-month program designed to nurture the next generation of Peace Corps managers and leaders, 

chose to evaluate the Correspondence Match program as their capstone project. The agency will work to 

implement the recommendations from the Leadership Development Academy to improve the program. This 

will include encouraging Volunteers to identify the educators and classrooms they will work with (rather than 

relying on the agency to make a match) and exploring the use of partnerships with organizations to provide 

technological assistance for connecting educators and classrooms to Volunteers. 

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

technical needs of host countries

The agency actively recruits talented Americans who have the skills required to address the needs of local 

communities. To ensure that these Volunteers represent the diversity of America, the agency actively 

encourages individuals from underrepresented groups across the United States to apply to Volunteer service. 

Public Benefit: When Volunteers are recruited who have the skills and experience requested by host 

communities, they are well-positioned to build local capacity. Additionally, a diverse Volunteer corps helps 

promote a more complete and rich understanding of Americans and contributes to local development goals. 

Notable Accomplishments:

• Sustained increase in the percentage of 

applications received from individuals of 

underrepresented ethnic groups (Indicator 

4.2.1.b): Since FY 2009, the agency has 

seen a sustained increase in the percentage 

of applications received from individuals of 

underrepresented ethnic groups—from 21 

percent in FY 2009 to 30 percent in FY 2013. 

This is a significant achievement and the result 

of a concerted effort by the Peace Corps to work 

toward building a Volunteer corps that represents 

the American public, contributing to the goal 

of promoting a better understanding of Americans in the communities where Volunteers serve. The agency 

38% 38% 40%

22%

15% 13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011 FY 2012 FY 2013

3.1.1.a Results

20% 21%

24% 26% 27%

30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013

4.2.1.b Results
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 21

has focused on diversity recruitment by increasing the number of campus recruiters at minority-serving 

institutions and conducting targeted marketing and outreach campaigns to underrepresented groups.

Performance Challenges:

• Reduction in the percentage of Volunteer 

positions that were filled by applicants for 

service (Indicator 4.1.1.b): Over the past three 

years, the agency has experienced difficulties in 

providing the number of Volunteers that have 

been requested by overseas posts. The number 

of Volunteers requested by a post represents 

the number of funded Volunteer positions that 

the post can fully support for 27 months of 

service. When Volunteer requests are not fully 

met, it represents a missed opportunity for the 

communities expecting Volunteers and for the 

talented and motivated Americans who could have 

served as Volunteers. The primary challenge in providing skilled Volunteers at the levels requested by posts 

is the decrease in the number of applications for Peace Corps service over the last few years—from a high of 

15,386 applications received in FY 2009 to 10,091 applications in FY 2012 and 10,118 applications in FY 2013. 

Significant process changes in FY 2013 related to the implementation of a new electronic applicant processing 

system also contributed to poor performance on this indicator this year.

Improving Volunteer recruitment and selection processes to better meet the skill needs of host countries is 

a critical priority for the agency. Major process and structural changes are currently underway, including 

reducing the length of the Volunteer application, expediting the application process, providing applicants with 

more transparency and choice regarding their potential Volunteer assignment, and other reforms to improve 

the application experience. 

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

Volunteers live and work in developing communities worldwide and encounter a broad range of social and 

environmental conditions during their service. As a result, safety, security, and medical risks are an inherent 

part of Volunteer service. The effective and efficient management of agency resources, including human and 

financial resources, is critical to enabling Volunteers to focus on their work. 

Public Benefit: Ensuring the safety, security, and health of Volunteers is the Peace Corps’ highest priority, 

and the American people want Volunteers—individuals who are serving their country—to return home safely.

Additionally, effective management practices ensure that the agency is utilizing the resources of the American 

taxpayers to achieve optimal performance. 

Notable Accomplishments:

• Implementation of the Sexual Assault Risk Reduction and Response program: The Sexual Assault Risk 

Reduction and Response program is the Peace Corps’ comprehensive strategy for reducing risks and 

strengthening its response to Volunteers who have been the victims of sexual assault and other violent crimes. 

The program has been in development over the past few years in consultation with post staff and Volunteers 
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22 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

worldwide, as well as nationally recognized experts, including recommendations from the Department of 

Justice; the Rape, Abuse, and Incest National Network; and the Peace Corps Sexual Assault Advisory Council. 

This program is based on a two-pronged approach: reducing risks through training for Volunteers and 

ensuring that Peace Corps staff responds effectively and compassionately when incidents do occur. This 

approach incorporates several policy changes, extensive training for Volunteers and staff, and new, clearly 

defined procedures for reducing the risk of sexual assault and responding to Volunteers who are victims of 

sexual assault. The program exceeds the requirements of the Kate Puzey Peace Corps Volunteer Protection 

Act of 2011, reflecting the agency’s ironclad commitment to the physical and emotional well-being of every 

Volunteer. 

• Improvements to the employee performance 

management system (Indicator 5.2.2.b): 

The agency is strengthening its employee 

performance management program by piloting a 

new performance appraisal program and revising 

agency policies related to the agency’s incentive 

awards program. The new performance appraisal 

program better connects employee performance 

plans to the agency’s strategic goals and objectives 

to help employees see how their work contributes 

to the mission. The incentive awards program was 

revised to create different levels of awards, both for 

individuals and groups, to include monetary and 

non-monetary recognition to enhance employee 

recognition. 
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 23

Looking Forward

Over the past year, the agency has facilitated a highly inclusive process to set a strategic vision for the agency 

over the next five years through the development of the FY 2014-2018 Strategic Plan. The plan includes goals, 

objectives, and strategies guided by a vision in which:

• every Volunteer has a safe, healthy, and productive service,

• Volunteers contribute to demonstrable gains in human development and mutual understanding in the 

countries where they serve, and

• more Americans than ever before are inspired to commit to national service in the cause of peace.

Through the new strategic plan, the agency will proactively address recurring and future challenges and 

opportunities by institutionalizing key reforms to strengthen operations, ensuring the well-being of Volunteers, 

and deepening the agency’s contributions to the development of the communities were Volunteers serve. The 

new plan will be finalized and published in the FY 2015 Congressional Budget Justification in February 2014 

(to be posted at www.peacecorps.gov/open). Through the goals, objectives, and strategies in the plan, the agency 

will address the following key internal and external performance themes over the next five years.

Ensuring Volunteer well-being

The safety, security, and health of Volunteers will remain the agency’s highest priorities. Volunteers dedicate 

two years of their lives to service in other countries where the health-care infrastructure and security 

environments are often fragile. During their service, some Volunteers live and work in communities where the 

potential for crime or conflict exists. Further, Volunteers may experience a range of emotions as they address 

the complexities of development work and encounter unique stressors. The agency is committed to maximizing 

Volunteers’ well-being, thereby allowing them to focus on their assignments and helping to ensure that they 

return home safely and in good health. The Peace Corps adopts a holistic approach to Volunteer well-being that 

includes prevention and response systems and high-quality medical and mental health services. 

The ongoing implementation of the Kate Puzey Peace Corps Volunteer Protection Act of 2011 will remain 

a focus for the agency. Many components of the Sexual Assault Risk Reduction and Response program are 

already in effect, including the Office of Victim Advocacy, improved training for Volunteers and staff, an 

immunity policy that encourages Volunteers to report sexual assault to the agency, a 24-hour anonymous 

sexual assault hotline pilot program for Volunteers, and sexual assault response liaisons at each post.

Becoming the service opportunity of choice for talented Americans 

The Peace Corps remains a top choice for talented Americans interested in service. At the same time, the range 

of available international service opportunities has increased considerably since the founding of the agency 

in 1961. Faced with this challenge, the agency is introducing major changes to increase its effectiveness in 

attracting highly qualified candidates in a more competitive landscape.

The agency will become the service opportunity of choice for talented Americans interested in service by reaching 

a new generation of potential Volunteers and streamlining the application process. Improvements in the agency’s 

recruitment and selection processes, including reducing the length and complexity of these processes and offering 

applicants greater transparency regarding their potential country of service, are already underway and will 

continue over the next few years. Increasing the number and types of service opportunities offered to Americans 

and increasing the number of applications received for Peace Corps service are major priorities for the agency. 
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24 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Strengthening development impact 

The Peace Corps is unique in how it contributes to the development of host countries. Rather than investing in 

major infrastructure projects, the Peace Corps works to build the capacity of local organizations, communities, 

and individuals to improve their own lives. Volunteers live and work in communities for an extended period of 

time and often serve in places that other development organizations rarely go. Volunteers’ work is predicated 

on integrating and adopting local norms to build trust and mutual understanding. Volunteers respond to 

local needs through training, modeling, and acting as a resource for their partners in order to affect local 

development outcomes. The success of Peace Corps’ approach to development is dependent on the agency’s 

ability to design programming and training that leverages and builds upon the skills of the talented Americans 

selected for service. 

The agency launched the Focus In/Train Up strategy in FY 2011 to re-focus programming and training on the 

projects and activities that provide the greatest opportunity for sustainable results—in which host country 

and local priorities are addressed by the knowledge, skills, and abilities of Volunteers. Significant progress 

has been made in implementing the strategy, including a complete re-design of technical training for each 

Volunteer sector and the re-development of projects for all posts. As a result, Volunteers are better positioned 

to contribute to local development outcomes.

Moving forward, the agency will continue to improve programming and training by strengthening language training 

and acquisition; better aligning the recruitment of Volunteers to programming; improving monitoring, reporting, and 

evaluation efforts; and engaging in global communities of practice through knowledge sharing platforms.

Engaging returned Volunteers to continue their service 

More than 215,000 Americans have served as Peace Corps Volunteers since 1961. Many 

Americans have a relative, teacher, doctor, or friend who served as a Volunteer. These returned Volunteers 

represent a significant domestic dividend of Americans committed to making a difference and promoting peace 

and friendship. After they return home from their assignments, they continue advancing the Peace Corps 

mission by sharing their experiences with family, friends, and the American public; promoting volunteerism 

and service; and engaging in public service.

Returned Volunteers are critical to the agency’s achievement of core goal three (“Help promote a better 

understanding of other peoples on the part of Americans”). For this reason, the agency actively encourages 

returned Volunteers to share their experiences with the American public and provides opportunities for them 

to do so. Returned Volunteers also participate in recruitment events to help recruit the next generation of 

Volunteers. Additionally, the agency prepares returned Volunteers to continue their service academically and 

professionally by aiding in their transition back to the United States through career services and third goal

support.

However, much of the returned Volunteer community’s work to advance the Peace Corps mission takes place 

outside the agency’s control. Returned Volunteers organize organically into country-of-service-based or U.S. 

geographically-based groups to promote a better understanding of the countries and cultures in which they 

lived and worked. They also support Volunteer projects and engage in U.S.-based volunteer efforts. Additionally, 

the agency is limited in its ability to contact returned Volunteers directly by the Paperwork Reduction Act.

In the future, the agency will increase its engagement with returned Volunteer groups to provide more third goal 

promotional materials. The agency will also explore the development of a regular returned Volunteer survey to 

gather the perspectives of returned Volunteers on the agency’s third goal efforts and to identify opportunities for 

improving the preparation and support of returned Volunteers to continue their service after they return home. 
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 25

Developing an institutional memory

The Peace Corps’ unique law limiting the vast majority of U.S.-based and American overseas staff to five-year 

appointments helps to ensure a constant influx of fresh ideas and innovation. It also produces significant 

human capital and knowledge management challenges. After decades of short-term staff appointments, a 

major challenge for the agency is knowledge retention. Staff members have limited opportunities to learn from 

the mistakes of their predecessors, build upon their best practices, or take full advantage of the experience of 

seasoned professionals. 

At the same time, the spread of the internet and mobile technology to many of the communities where 

Volunteers serve presents an excellent opportunity to increase communication and collaboration between 

Volunteers and staff around the world. Knowledge sharing platforms can facilitate this collaboration by 

enabling both Volunteers and staff to store and search for specific project information. As a result, Volunteers 

and staff can solve problems and build upon already successful projects and strategies. PCLive, an internal 

agency website that facilitates the exchange of programming, training, evaluation, and other agency materials, 

was launched for staff use in FY 2013. The agency will refine this tool and expand its use to Volunteers in 

FY 2014. When fully operational, both Volunteers and staff will have the tools needed to begin building upon 

institutional memory. Volunteers and staff will be able to share experiences, upload content, ask questions and 

get answers, search for and filter information, and access important materials.

Improving performance through evidence and innovation

The Peace Corps is committed to improving agency performance by applying evidence-based solutions to 

persistent problems, conducting new evaluations and research to identify promising practices, and piloting and 

testing new approaches to meeting agency goals. Through the performance management system, the agency is 

strengthening operations in the field to the benefit of our host country partners and the American public. 

The agency has made great progress in recent years to utilize data and evidence in program, policy, and budget 

decisions. For example, the Country Portfolio Review—an annual, comprehensive review of internal and 

external data related to each country program—informs the allocation of Volunteer and financial resources to 

overseas posts. Additionally, the agency holds quarterly performance reviews to regularly review progress on 

agency goals and prioritize strategies to meet goals.

Moving forward, the agency will engage in new evaluation and research activities and pilot innovative 

approaches to improve its programs. A new counterpart survey was piloted in FY 2013 and will be fully 

operational in FY 2014. The counterpart survey will collect feedback directly from Volunteers’ local 

counterparts on their work. The agency will also expand its use of performance and process evaluations to 

better understand low program performance. Additionally, the collection of baseline data upon entering 

new country programs is now included in agency guidance. The agency is also experimenting with collecting 

baseline data for new Volunteer projects.
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26 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

Analysis of Financial Statements

Overview of Financial Position

This summary of the agency’s financial position and results of operations addresses the relevance of major changes in 

the types and/or amounts of assets, liabilities, costs, and obligations. Overall, the funding position of the Peace Corps 

has diminished to some extent since fiscal year 2012 due to required sequestration budget cuts.

The Peace Corps’ principal financial statements include the Balance Sheet, Statement of Net Cost, Statement of 

Changes in Net Position, and Statement of Budgetary Resources. Financial statements and notes are included in the 

Financial Section of this report.

For the seventh consecutive year, the agency received an unmodified (clean) audit opinion on the financial statements. 

Additionally, the Peace Corps was further recognized by its sixth award of the coveted Association of Government 

Accountants’ Certificate of Excellence in Accountability Reporting for the FY 2012 Performance and Accountability 

Report.

The agency funds mainly consist of appropriated funding administered by the U.S. Department of Treasury and 

appropriated by Congress in the amount of just over $356 million for FY 2013. This constitutes a reduction of $19 

million from the FY 2012 appropriation of $375 million. Budgetary Resources were $447.8 million for FY 2013 

compared to $462.8 million as restated for FY 2012. Budgetary resources consist mainly of appropriated funds 

plus the available unobligated balance of prior year appropriated funds, recoveries of prior year obligations, and the 

spending authority from offsetting collections (primarily the reimbursable work the agency performs on behalf of 

other federal agencies such as U. S. Agency for International Developments and its $11.9 million for the nation’s Feed 

the Future, Global Education, and other initiatives). The FY 2012 Financial Statements were restated as shown in 

Note 18, Restatement, for its treatment of the Foreign Service National (FSN) Separation Liability Fund, the Host 

Country Resident Contractors (PSC) Separation Liability Fund, unfunded employment liability, and proceeds of sale. 

The agency has two years in which to obligate appropriated funds and another five years in which to complete the 

payout process for those funds. The agency continues to operate as one program and, in lieu of adopting goal costing, is 

enhancing the use of performance and cost information in budgetary decision making.

A comparison summary of the major financial activities in FY 2013 and FY 2012 is presented in the table that follows. 

Changes in Financial Position from FY 2012 t0 FY 2013

(In Thousands)

FY 2013 FY 2012

(Restated)

Fund Balance with Treasury 188,687 180,689

Accounts Receivable 3,166 2,545

PP&E 29,987 35,176

Prepaid Volunteer Living Allowances 2,010 2,220

Other Assets 3,440 3,369

Total Assets 227,290 223,999

Accounts Payable 36,604 35,436

Employee Benefits 153,397 139,531

Unfunded FECA Liability 32,297 30,558

Unfunded Annual Leave 9,755 9,415

Other Employment Related 2,492 5,825
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 27

Non-Entity Funds 23,400 27,742

Other Liabilities 1,159 1,249

Total Liabilities 259,104 249,756

Unexpended Appropriations 129,818 114,526

Cumulative Results of Operations -161,632 -140,283

Total Net Position -31,814 -25,757

Total Liabilities and Net Position 227,290 223,999

Net Cost of Operations 371,842 394,587

Budgetary Resources 447,801 462,799

Analysis of Financial Results

ASSETS – WHAT WE OWN AND MANAGE. Assets are the amount of future economic benefits owned or 

managed by the Peace Corps to achieve its mission. Total assets were $227.3 million as of September 30, 2013 on 

the Balance Sheet. This represents an increase of $3.3 million over FY 2012’s $224 million. The primary reason 

for the increase in assets was due to an increase in the Fund Balance with Treasury. 

The most significant assets are the Fund Balance with Treasury and Property, Plant, and Equipment (PP&E) 

which represents 83 percent and 13 percent of the Peace Corps’ assets, respectively. The Fund Balance with 

Treasury consists of funding available through the U.S. Department of Treasury’s accounts to pay for agency 

obligations. PP&E are tangible assets owned by the agency, reported by major class in detail in Note 5, General 

Property, Plant, and Equipment, Net.

The FY 2013 Fund Balance with Treasury was $188.7 million, increased by $8.0 million from $180.7 million 

in FY 2012 caused by lower rates of expenditure outlays in FY 2013. PP&E was $30 million in FY 2013, decreased 

by $5.2 from $35.2 million in FY 2012 due to a lower balance in net book value for vehicles, information technology 

(IT) hardware, and general property, plant, and equipment associated with the disposition of assets in FY 2013. 

 Agency assets by type are shown in the chart below: 

Fund Balance with 

Treasury

$188,687

(83%)

Accounts Receivable

$3,166 (1%)

PP&E

$29,987

(13%)

Prepaid Volunteer 

Living Allowances

$2,010 (1%)

Other Assets

$3,440

(2%)

FY 2013 Assets

(In Thousands)
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28 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

LIABILITIES – WHAT WE OWE. Liabilities are the amounts owed by the Peace Corps. Total liabilities of $259.1 

million were shown on the Balance Sheet as of September 30, 2013, an increase of $9.3 million from $249.8 

million restated amount in FY 2012. This increase was primarily the result of Federal Employees’ Compensation 

Act (FECA) benefits liability that was accrued for by the agency based on amounts provided by the Department 

of Labor.

Liabilities by type are shown in the chart below:

ENDING NET POSITION – WHAT WE HAVE DONE OVER TIME. Net Position represents the difference 

between the Assets and the Liabilities on the Balance Sheet. The agency’s Net Position decreased in FY 2013 to 

$31.8 million from $25.8 million in FY 2012. 

NET COST – RESULTS OF OPERATIONS. The Net Cost of Operations decreased in FY 2013 from the 

restated balance of $394.6 million in FY 2012 to $371.8. The increased expenses for Volunteer and employee 

costs was offset by a correction in errors of FY 2012 severence and separation liability resulting in a $22.8 

million decrease in the agency’s net cost of operations.

Limitations of the 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

 $36,604 

(14%)

Employee Benefits 

$153,397 

(59%)

Unfunded 

FECA 

Liability 

$32,297 (12%) 

Unfunded Annual

Leave 

$9,755 (4%) 

Other Employment 

Related 

$2,492 (1%)

Non-Entity 

Fund

 $23,400 

(9%) 

Other Liabilities 

$1,159 (1%) 

FY 2013 Liabilities

(In Thousands)
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 29

Analysis of Systems, Controls, and Legal Compliance

Management Assurances

This section addresses the Peace Corps’ compliance with the Federal Managers’ Financial Integrity Act 

(FMFIA) of 1982 (P. L. 97-255) and assesses the financial management systems strategy. OMB Circular A-123, 

Management’s Responsibility for Internal Control, is the policy and guidance document that implements the 

requirements of 31 U.S.C. 3512 (c), (d) (commonly known as the FMFIA). 

Federal Managers’ Financial Integrity Act

The FMFIA requires the heads of agencies to annually assess and report on the adequacy of internal controls 

that protect the integrity of federal programs. In accordance with FMFIA, agencies are required to establish 

accounting and administrative controls to include program, operational, and administrative areas, in addition 

to accounting and financial management and requires standards to ensure the prompt resolution of all audit 

findings. The FMFIA requires reasonable assurances 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 qualified assurance statement on the adequacy of internal 

controls over financial reporting (FMFIA § 2) and on conformance of financial systems with government-wide 

standards (FMFIA § 4) is shown below in the FY 2013 Qualified FMFIA Assurance Statement.

Internal Control Guidance

OMB Circular A-123 provides guidance for implementing the FMFIA further defines management’s 

responsibility for internal control in federal agencies. OMB Circular A-127, Financial Management Systems, 

prescribes policies and standards to follow when managing financial management systems. Peace Corps 

Manual Section 784, Internal Control System, sets out the policies and procedures for establishing, assessing, 

correcting, and reporting on, the agency’s internal control in order to achieve the objectives of effective and 

efficient operations; reliable financial reporting; and compliance with applicable laws and regulations. The 

safeguarding of assets is a subcomponent of each objective.

Internal Control Operations

During the FY 2013 financial statement audit, the agency achieved its seventh consecutive unmodified (clean) 

audit opinion. Legal compliance was addressed through auditor testing of selected laws and regulations.  Our 

independent external auditors identified one material weakness in the area of financial reporting and 

management.  In this finding, it was determined that Peace Corps was not in compliance with OMB Circular 

A-11 with regards to financial reporting and management.  An independent external audit firm conducting our 

annual Federal Information Systems Management Act (FISMA) of 2002 audit identified three “high” findings 

which we have determined to be, in essence, a material weakness. 

The two material weaknesses notwithstanding, the agency’s qualified annual FMFIA assurance statement 

that follows in this section is supported by department and office heads assurance statements of compliance 

with effective internal controls throughout the Peace Corps as of September 30, 2013. Agency managers are 

responsible for designing, implementing, and monitoring internal controls (proper organization, policies 

and procedures) in their areas. Monitoring the effectiveness of internal control occurs in the normal course 

of conducting agency business over the course of each year. Assurance statements are based on information 

gathered from various sources including the managers’ personal knowledge of day-to-day operations and 
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30 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

existing controls, self-assessments, senior leadership meetings, audits of financial statements, Inspector 

General audits, reports, reviews, investigations, and evaluations. Agency manager’s reasonable assurance 

of compliance is further supported by risk assessments prepared earlier this year by department and office 

heads following reviews of operations in their area where no material weaknesses were identified. The risk 

assessments, though, did identify weaknesses of less severity than material weaknesses in a few select areas and 

those are being monitored closely and managed within the agency.

The two significant deficiencies from the FY 2012 financial statement audit were monitored through the 

agency’s corrective action plan and during periodic Senior Assessment Team meetings throughout the 

year. The monitoring and corrective efforts of the Senior Assessment Team led by the chief financial officer 

with members of agency top management were not successful, though, in fully resolving these significant 

deficiencies.

The agency’s internal control program is designed to ensure compliance with the goals, objectives, and 

requirements of the FMFIA and other federal regulations.

Debt Management Controls

As a small agency, the Peace Corps has only a limited amount of debt to manage under the provisions of the 

Debt Collection Improvement Act of 1996, OMB Circular A-129, Policies for Federal Credit Programs and NonTax Receivables, the Controller Alert, Improving Collection of Delinquent Debt issued January 4, 2013, and 

other laws. Quarterly reports are provided through the Treasury Report on Receivables and Debt Collection 

Activities. When applicable, the agency writes-off delinquent debt older than two years to not overstate the 

accounts receivable and generally closes out the debt at that point. A Certification Agreement with Treasury 

has been signed for calendar year 2014.

Financial Management Systems Strategy

A complex upgrade to the agency’s globally deployed multi-currency Oracle financial system, Odyssey, with 

its new sub-ledger accounting architecture was successfully completed by the in-house financial systems 

team during FY 2013. This improvement paved the way for financial reporting through the Governmentwide 

Treasury Account Symbol Adjusted Trial Balance System beginning in FY 2014.

Reducing the reliance on paper-based financial processing took another step forward with the upgraded 

personal services contractor application that automated error-prone manual calculations, reduced data 

entry, and eliminated the paper-based submission process for personal services contracts. As a result of the 

financial system automation and process improvements completed in FY 2013, the agency significantly reduced 

the number of documents mailed, re-entered, filed, and archived each year. Enhancements to the agency’s 

information technology (IT) infrastructure and overseas financial systems modules, scheduled for completion 

in FY 2016, will further reduce the remaining paper-based financial business processes.

The Treasury’s Payment Application Modernization will replace multiple applications across the federal 

agencies using Treasury disbursing services with a single standardized application to support improvements in 

the payment process. Enhancements to the financial system are underway and this agency will submit payment 

data in a newly developed standard input format in FY 2014.

The planned deployment of an agencywide commercial time keeping system was delayed until FY 2014 as the 

cross-service provider, Treasury, could not provide the necessary resources to support the implementation in 

FY 2013. The timekeeping system, which is much like that of the U.S. Agency for International Development, 

will expand and automate the ability to track, monitor, and capture the cost of capital projects once fully 

integrated with the Odyssey financial system. Initial implementation will only include domestic staff, and 

worldwide deployment to the posts could be as late as FY 2016.
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 31

An upgrade to the Hyperion Planning budget formulation and financial analysis software application is 

scheduled for completion during the second quarter of FY 2014. The system upgrade is necessary to ensure this 

core application continues to function as the agency upgrades IT infrastructure components.

The agency’s property accountability system deployed worldwide in late FY 2011 has not proven effective and is 

expected to be replaced in FY 2014.

Finally, the agency continues to operate as one program and, in lieu of adopting goal costing, is enhancing the use 

of performance and cost information in budgetary decision making.

The FMFIA management assurance statement that follows is consistent with the FY 2013 financial audit report. 
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32 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

FY 2013 FMFIA Qualified 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 a qualified statement 

of assurance for FY 2013 that its internal control over the effectiveness and efficiency of operations, 

financial reporting, and compliance with applicable laws and regulations was operating effectively. In 

FY 2013, one material weakness in the area of financial management and reporting and one material 

weakness in the area of information technology management were found.

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 2013.

Carolyn Hessler-Radelet, Acting Director

December 13, 2013

Joseph L. Hepp, Jr.

Chief Financial Officer

December 13, 2013
PERFORMANCE SECTION
34 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

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Introduction to Agency Performance

The performance section details the results of the agency’s activities in FY 2013 to improve performance on 

the five strategic goals, 14 performance goals, and 40 performance indicators outlined in the agency’s FY 2013 

annual performance plan. This is the fifth year of agency operations under the Peace Corps FY 2009-2014 

strategic plan. The strategic plan and performance plan can be found at www.peacecorps.gov/open.

The performance section includes a discussion of the work that supports the agency’s strategic goals. The 

rationale for each indicator is included and describes how it relates to the achievement of performance goals. 

Subsequent discussion links the major agency activities associated with the indicator to the results achieved. 

Information is provided on how the agency will strengthen performance moving forward. Finally, the data 

source for each performance indicator is included.

The FY 2013 annual performance plan includes several indicators first included in FY 2012; as a result, trend 

data are not available for all indicators. Prior year trend data are provided when available.

Performance Management at the Peace Corps

The agency is deeply committed to performance improvement through the use of high-quality data and 

evidence. The Peace Corps Acting Director serves as the chief operating officer and oversees the agency’s 

performance management efforts. The Office of Strategic Information, Research, and Planning (OSIRP) is 

responsible for performance planning and reporting and works closely with offices across the agency to collect 

and analyze data to improve agency operations. The director of OSIRP serves as the performance improvement 

officer for the agency. The agency actively participates in the federal government’s Performance Improvement 

Council, as well as the Small Agency Council’s Performance Improvement Committee, in order to remain 

current with governmentwide performance improvement guidelines and best practices. 

The agency ensures data are available and used by agency leadership and senior managers to inform decision 

making through the following processes: 

• Quarterly strategic plan performance review sessions. Key officials from across the agency, including 

senior leadership, review performance data at the end of each quarter to share best practices and develop 

strategies to meet performance targets when areas for improvement are identified. A performance spotlight

is identified during each quarterly meeting to highlight a particularly notable use of data in program, policy, 

or budget decisions. 

• Integrated Planning and Budget System (IPBS). Through the IPBS, headquarters offices and posts develop 

strategic and operational plans in order to ensure that their activities are aligned with and advance the 

agency’s strategic goals. IPBS plans are developed during the agency’s budget formulation process; budgets 

are informed by the resource requirements of the IPBS plans. Through the IPBS, the agency is working 

to better link performance and budgeting processes to ensure decision makers have the appropriate 

information to inform program, policy, and budget decisions. 

• Annual Country Portfolio Review. Each year, the agency conducts a comprehensive review of active and 

potential Peace Corps posts based on external and internal data. The Country Portfolio Review informs 

decisions about new country entries, country graduations (closures), and the allocation of Volunteers and 

other resources.

Verification and Validation of Performance Data

The agency’s FY 2013 performance results are based on reliable and valid data that are complete as of the end 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 35

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of the fiscal year. The agency places great value and emphasis on continuously improving its performance 

reporting procedures and processes. 

Data collection and reporting consistency is ensured by the use of detailed indicator data reference sheets 

that include operational definitions, data sources, and a comprehensive methodology for measuring each 

performance indicator. The agency ensures the data are complete and accurate through oversight and review by 

OSIRP. The major data sources are detailed below. 

Annual Volunteer Survey 

The Annual Volunteer Survey (AVS) is an anonymous, voluntary survey of all currently serving Volunteers. This 

comprehensive survey provides direct feedback from the Volunteers regarding agency activities and is a key 

data source informing performance improvement. In FY 2013, the agency reached the highest response rate in 

the history of fielding the survey since 1975—92 percent. The consistently high response rate from Volunteers 

minimizes total survey error. The survey is not, however, administered to a random sample of Volunteers and—

as with other non-randomized surveys—therefore subject to non-response bias.

The demographic profile of the survey respondents is representative of the Volunteer population in key 

characteristics: age, sex, race, ethnicity, level of education, and status as a Volunteer. In FY 2013, AVS was 

administered exclusively online for the second year in a row. Responses to all AVS questions were directly 

provided by the Volunteers and housed in an external, electronic survey database. To ensure data quality, 

rigorous data cleaning procedures were applied to the dataset prior to analysis. Analyzed data were used to 

inform agency management about the Volunteers’ perspectives on key issues. The high response rate from 

Volunteers and the data verification and validation measures ensure the high level of AVS data accuracy needed 

for its intended use.

The AVS reflects the experiences and opinions of Volunteers at a fixed point in time and can be influenced 

by various factors, such as major external events or the ability to recall information. The agency takes into 

consideration both statistical and practical significance to account for variation in AVS results from year to 

year. Thus, nominal percentage point movements may not be meaningful or significant. In using AVS results, 

the agency reviews longer-term trends to account for normal, expected variations in responses.

Peace Corps Database Systems

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

staff who have been properly trained can access key systems, maintaining data integrity and ensuring that the 

data entry methodology is followed. Regular reconciliation processes between agency units enable users to 

verify and test performance data to isolate and correct data entry or transfer errors. Internal, automated system 

processes also ensure data are appropriately transferred among 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 post and headquarters office data call

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

Headquarters offices submit data for one indicator. Both overseas posts and headquarters offices submit information 

on the evaluation and research activities they conducted in FY 2013, including the findings generated and the actions 

taken in response to those findings. Leaders from all overseas posts and headquarters offices responded to the survey 

in FY 2013, thus providing valid performance data. The survey was designed with clear logic and data validation rules 

to minimize data entry error. The data were independently reviewed and anomalies were addressed and corrected to 

improve data quality. As a result, high data quality was established and the required level of accuracy was met.
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Annual Performance Results

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

meet their skill needs

The Peace Corps supports the work of the Volunteers by developing effective projects in collaboration with host 

country governments and local communities and organizations, training Volunteers in the skills they need to 

build local capacity, and focusing on skills transfer to local individuals and community groups. The continued 

implementation of the Focus-In/Train-Up strategy—an agency-wide effort to focus on highly effective 

interventions and to provide Volunteers with world-class training—served to advance this strategic goal.

The agency was successful in strengthening local capacity in FY 2013. Eight of 11 performance targets were met.

Strategy: Enhance local capacity

• Ensure effective programs

• Ensure effective training

• Increase effectiveness of 

skills transfer

• Programs fulfill host country 

needs

• Volunteers have necessary 

competencies to meet needs

• Host country demonstrates 

enhanced capacity to meet 

needs

• Local conditions are 

improved

• Communities have capacity 

to solve problems and serve 

as model for others

Activities Outcomes Impact
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Performance Goal Results

Performance Goals Performance Indicators FY 2013 

Target

FY 2013 

Result

Target 

Met

1.1.1: Ensure the 

effectiveness of incountry programs

1.1.1.a. Percentage of project managers who 

meet with their host country Project Advisory 

Committees

56% 85% ü

1.1.1.b. Percentage of posts that provide annual 

progress reports to their host country agency 

sponsors and partners for all of their projects

95% 90% û

1.1.1.c. Percentage of projected length of service 

actually served by Volunteers 87% 90% ü

1.1.1.d. Percentage of Volunteers who report their 

satisfaction with site selection and preparation as 

adequate or better

73% 73% ü

1.2.1: Ensure the 

effectiveness of incountry training

1.2.1.a. Percentage of Volunteers who meet local 

language requirements for service per post testing 

standards

88% 91% ü

1.2.1.b. Percentage of Volunteers who report 

training as adequate or better in preparing them 

technically for service

84% 83% û

1.2.1.c. Percentage of Volunteers who report training 

as adequate or better in preparing them to work 

with their counterparts/community partners

82% 83% ü

1.2.1.d. Percentage of posts that provide monitoring 

and evaluation training to their Volunteers 90% 100% ü

1.3.1: Increase the 

effectiveness of 

skills transfer to host 

country individuals, 

organizations, and 

communities

1.3.1.a Percentage of Volunteers who report their 

primary project work transferred skills to host 

country individuals and organizations adequately 

or better

87% 88% ü

1.3.1.b. Percentage of projects documenting 

measurable impact in building the capacity of host 

country nationals

86% 88% ü

1.3.1.c. Percentage of partner organizations at post 

that report their assigned Volunteer fulfilled their 

requested need for technical assistance

75% 61% û

üTarget met         ûTarget not met         
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Performance Goal 1.1.1: Ensure the effectiveness of in-country programs 

Indicator 1.1.1.a: Percentage of project managers who meet with their host country Project Advisory 

Committees

FY 2013 

Target

FY 2013 

Result

Target 

Met

56% 85% ü

Rationale: Effective projects ensure local support by taking into account the needs of the host country and local 

beneficiaries. Project Advisory Committees (PACs) are composed of agency staff, host country government officials, 

and local counterparts. They serve as advisory bodies to program managers to design, monitor, and assess projects. 

Discussion of Result: The target was met. The agency 

held Project Advisory Committees for the vast majority 

of its projects—144 of 169 projects (85 percent). The use 

of PACs is now a wide-spread practice among posts to 

ensure local partners are engaged in project development 

and evaluation. Performance was much higher than 

expected and can be largely attributed to host country and 

local beneficiary involvement in project revisions through 

the Focus In/Train Up strategy. 

The agency built on the success achieved last year by 

continuing to promote the practice across each region and 

providing additional resources. The major challenge cited by posts is turnover among their key local government 

partners which inhibits their ability to maintain stable PACs. Posts are exploring low-cost solutions for meeting 

with PACs, including holding meetings in the capital city to minimize travel costs and scheduling virtual meetings.

Strengthening Future Performance: The agency will continue to provide encouragement and guidance to all 

overseas posts for engaging PACs and share best practices among posts for operating PACs. Programming and 

training guidance will be updated in FY 2014, and the use of PACs will be highlighted as a best practice. 

Data Source: Overseas post data call

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

sponsors and partners for all of their projects

FY 2012 

Target

FY 2012 

Result

Target 

Met

95% 90% û

Rationale: Annual progress reports describe the achievements of all projects at a post to host country agency 

sponsors and partners. By reporting annually to local stakeholders on the progress of projects, the agency 

documents the impact of its Volunteers and facilitates a dialogue with the host country on how best to increase 

the effectiveness of those projects. 
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62%

53%

70%

87% 83% 90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011 FY 2012 FY 2013

Discussion of Result: The target was not met. Out of 1.1.1.b Results

62 posts, 56 posts provided annual reports to their host 

country partners for all of their projects—the highest 

percentage achieved since data has been collected on this 

indicator. Even though the target was not met, the agency 

has made substantial progress since last year.

All posts in the Europe, Mediterranean, and Asia region 

provided progress reports to partners for all of their 

projects—a notable accomplishment. The Africa region 

set a goal of 100 percent for its posts, and reported very 

significant progress this year. All but one post (96 percent) in the region developed annual reports for all 

projects—a marked improvement from the result last year (68 percent). 

Identifying resources—including writers and funding for translations—to develop the annual reports remains a 

challenge. While the agency has developed several types of supplementary guidance regarding the development 

and delivery of annual reports, some posts also reported that the lack of a standard template for report 

content presents them with challenges in meeting the indicator. In addition, several posts also reported that in 

countries where local stakeholders are not accustomed to receiving electronic copies or accessing documents 

on the internet, expensive printed reports are expected, adding significant additional cost to the reports. 

Strengthening Future Performance: The agency will continue to share best practices through regional 

conferences to improve how results are reported to local stakeholders. Best practices include, incorporating 

content from Peace Corps Volunteer Leaders, providing electronic versions of reports where locally acceptable, 

and using alternative forms for the reports, such as PowerPoint presentations, instead of long, technical 

documents. 

Data Source: Overseas post data call 

Indicator 1.1.1.c: Percentage of projected length of service actually served by Volunteers

FY 2013 

Target

FY 2013 

Result

Target 

Met

87% 90% ü

Rationale: Projects require a specific amount of Volunteer service time for effective implementation. A high 

percentage of projected length of service actually served indicates Volunteers are in their communities for a 

sufficient length of time to meet project goals. 

Discussion of Result: The target was met. This measure 

provides one perspective on “early terminations” of 

Volunteers serving in the field. The result for FY 2013 

indicates that Volunteers are serving more of their service 

time than they have in recent years—an achievement that 

ensures the agency’s investment in Volunteer resources 

yielded added results.

The agency works to reduce the number of Volunteers 

who leave service early. The unexpected departure of a 
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Volunteer can have a negative effect on the Volunteer’s project and the goals established between the Peace 

Corps and the host country. Moreover, it represents a lost investment for the Peace Corps, which devotes 

resources to recruit and train individuals for service. The agency reduces early terminations by utilizing a 

rigorous Volunteer selection process and by ensuring Volunteers receive the necessary training and support to 

be safe, healthy, and successful.

Strengthening Future Performance: The agency will analyze early termination measures, including the 

reasons cited by Volunteers and staff for resignations, to identify trends across regions, posts, and sectors that 

may point to opportunities for improvement.

Data Source: Peace Corps Database System 

Indicator 1.1.1.d: Percentage of Volunteers who report their satisfaction with site selection and 

preparation as adequate or better

FY 2013 

Target

FY 2013 

Result

Target 

Met

73% 73% ü

Rationale: To create an environment for effective projects, the agency must select work sites that provide 

meaningful work opportunities and support the health and safety of Volunteers. The appropriate selection and 

preparation of work sites is crucial to the effectiveness of a Volunteer and the success of the overall project. 

Discussion of Result: The target was met. From FY 2008 

to FY 2009, Volunteers’ satisfaction with site selection 

and preparation declined from 79 percent to 73 percent. 

Since FY 2009, the result has stabilized. While the target 

was met, the increase in Volunteers’ satisfaction is not 

statistically significant and may be the result of normal 

fluctuations in Annual Volunteer Survey responses.

Site selection and preparation standards were developed 

in FY 2013 and have been disseminated to posts. All 

three regions developed and distributed region-specific 

guidance and standards. The Inter-America and the 

Pacific region and Europe, Mediterranean, and Asia region sent out guidance and a site development handbook 

for posts. The Africa region rolled out the standards at the country director conference. 

Volunteer site selection and preparation has been a challenge for several years. Constraints have included 

inadequate staffing levels, turnover of key staff such as country directors and directors of programming and 

training, inconsistent application of site selection and preparation protocols, and host country restrictions 

on the locations where Volunteers can serve. Effective site selection and preparation includes three major 

components: identifying appropriate sites, setting appropriate expectations with Volunteers, and regularly 

monitoring sites to provide support to Volunteers. 

Strengthening Future Performance: The agency will collect feedback from posts to identify areas for 

improvement. The agency will continue to place a premium on the implementation of critical recommendations 

from Peace Corps safety and security officers that relate to posts’ adherence to site selection criteria.

Data Source: Annual Volunteer Survey
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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 2013 

Target

FY 2013 

Result

Target 

Met

88% 91% ü

Rationale: Volunteers must achieve sufficient language ability to maintain their safety and security, integrate 

into their community, and work effectively. A high percentage of Volunteers who meet local language 

requirements indicates that training has been effective in preparing Volunteers for service. 

Discussion of Result: The target was met. In FY 2013, 

the agency continued to build on the improvements to the 

language training program through training-of-trainers 

sessions and language proficiency index certification 

workshops. 

While the target was met, the agency focused on 

improving data quality for this indicator. Posts continue 

to face technical difficulties in recording benchmarks and 

scores consistently. As a result of issues with the database, 

only 80 percent of Volunteers in FY 2013 who were tested 

had their language scores recorded in the database. The 

agency conducted a root cause analysis of the problem to identify potential solutions. The agency also worked 

with posts to set benchmarks, record scores, and transfer paper records into the database. These efforts will 

result in data quality improvements in the future.

The high turnover among certified language instructors is another challenge. Language instructors are 

often only contracted during Volunteers’ three-month pre-service training, contributing to high turnover as 

instructors secure other full-time work. Some posts have experimented with converting part-time language 

instructor positions into full-time language and cultural facilitator positions to teach local languages during 

pre-service training, continue providing language tutoring throughout Volunteers’ service, and serve as a 

cultural resource as Volunteers integrate into their communities. 

Strengthening Future Performance: To improve data quality, the agency has set an internal goal of collecting 

data for 100 percent of the Volunteers who are required to take a language test. The agency will also improve 

the database to correct the technical problems that posts face in recording language benchmarks and scores. 

Further, the agency will continue to pilot new strategies for improving the retention of language instructors. 

The agency will also expand the use of language testing at the end of Volunteers’ service to evaluate the 

language learning that has occurred throughout service.

Data Source: Peace Corps Database System

0%

93% 87% 85% 89% 91%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011 FY 2012 FY 2013

1.2.1.a Results
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Indicator 1.2.1.b: Percentage of Volunteers who report training as adequate or better in preparing them 

technically for service

FY 2013 

Target

FY 2013 

Result

Target 

Met

84% 83% û

Rationale: The agency provides Volunteers with technical training to prepare them for local, project-specific 

work. Volunteers who have been adequately trained in technical areas have the competencies necessary to 

address host country needs. 

Discussion of Result: The target was not met. While 

the target for this indicator was not met, performance 

improved from last year and significant progress was 

made in strengthening technical training.

In FY 2013, technical training packages were finalized 

for all Volunteer sectors through the Focus In/Train Up 

strategy. The Global Core training modules, required for 

all posts, were updated. Additionally, terminal learning 

assessment tools, which will help posts and headquarters 

clearly track the effect of training on Volunteer 

preparedness, were pilot-tested.

One of the primary challenges in strengthening technical training is the development and retention of technical 

trainers. Similar to language instructors, technical trainers are often seasonal employees. After their shortterm contract expires, many trainers find other, full-time employment opportunities. This results in the loss of 

the agency’s investment in training technical staff on working effectively with Volunteers and delivering Peace 

Corps-specific training material.

Strengthening Future Performance: The agency will continue to implement and evaluate the Focus In/

Train Up strategy to improve programming and training. The agency will also test alternative technical 

training staffing models, including converting technical training staff into full-time programming and training 

specialists that provide technical training and Volunteer project support throughout the year. 

Data Source: Annual Volunteer Survey

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

work with their counterparts/community partners

FY 2013 

Target

FY 2013 

Result

Target 

Met

82% 83% ü

Rationale: Volunteers build local capacity by working closely with local counterparts and partners. 

Counterparts and community partners connect Volunteers to local communities, and Volunteers must 

maintain and develop these relationships to ensure the sustainability of their work. 
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Discussion of Result: The target was met. The agency 

has consistently improved results on counterpart 

training for Volunteers.

The agency trains Volunteers on how to work 

successfully with local counterparts and partners with a 

focus on managing cultural differences.

In FY 2013, the agency included the Understanding My 

Work Partner training session for program managers in 

the Focus In/Train Up Global Core training curriculum 

required for all posts. The session builds staff skills in 

supporting Volunteers’ efforts to form positive work relationships with their counterparts. The agency also 

developed an intercultural learning strategy that, when operational, will help to determine the effectiveness of 

Volunteer cultural exchange efforts. 

Strengthening Future Performance: Planned updates to the intercultural training provided to Volunteers 

will focus on workplace interactions. Data from the Annual Volunteer Survey suggests that Volunteers manage 

cultural differences more effectively in their community than with their counterparts. The agency also plans 

to launch a new standardized counterpart survey (piloted in FY 2013) to measure and track counterpart 

perceptions of the work of the Volunteers.

Data Source: Annual Volunteer Survey

Indicator 1.2.1.d: Percentage of posts that provide monitoring and evaluation training to their Volunteers

FY 2013 

Target

FY 2013 

Result

Target 

Met

90% 100% ü

Rationale: When Volunteers are adequately trained in monitoring and evaluation (M&E), they will be better 

able to carry out their projects by more accurately assessing their achievement of project goals and making 

modifications in their approach when necessary. 

Discussion of Result: The target was met. Standardized 

M&E training is now provided to Volunteers across the 

world during pre-service training. All posts provided 

M&E training to Volunteers in FY 2013. This significant 

achievement was due to the integration of M&E training 

into the Global Core training curriculum required for all 

Volunteers during pre-service training. The target was 

exceeded due to the implementation of the standardized 

Focus In/Train Up training packages. 

Posts offered six standardized M&E sessions, developed 

through Focus-In/Train-Up: 

• Accomplishing Peace Corps’ First Goal

• Why we Monitor and Evaluate
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• How to Use Sector M&E Tools

• How we Report our Work

• How we Share our Progress

• How we Analyze Data 

The agency increased M&E support to posts in FY 2013 by delivering three regional M&E workshops to build 

the skills of programming and training staff and prepare data collection tools for Volunteers. Through the 

workshops, the agency built a cadre of “M&E champions” to promote an M&E culture among Volunteers and 

staff and to develop training and tools to improve the use of M&E in the field.

Strengthening Future Performance: The agency will revise the six standard M&E sessions to reflect feedback 

gleaned from the three regional workshops. Moving forward, the agency will no longer set a target for this 

indicator in the annual performance plan as all posts are now required to provide M&E training to Volunteers 

and performance is already at a high level. 

Data Source: Overseas post data call

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 who report their primary project work transferred skills to host 

country individuals and organizations adequately or better

FY 2013 

Target

FY 2013 

Result

Target 

Met

87% 88% ü

Rationale: Volunteers build local capacity by transferring skills to host country individuals and organizations. 

Volunteers’ perception of their work is one indicator of the effectiveness of their capacity-building efforts.

Discussion of Result: The target was met. Since 

FY 2008, Volunteers have consistently reported their 

work transfers skills to host country individuals and 

organizations. This suggests that the vast majority of 

Volunteers feel they are prepared for and placed in 

environments where they can effectively transfer their 

skills to local partners.

Improved performance in FY 2013 is likely due to the 

redesign of all projects through the Focus In/Train 

Up strategy and the increased focus on M&E among 

Volunteers and staff.

Strengthening Future Performance: The development of a new Volunteer Reporting Tool (to be fully 

operational in FY 2014) will substantially improve Volunteers’ tools for monitoring and evaluating the success 

of their primary project work. 

Data Source: Annual Volunteer Survey

84% 88% 85% 86% 87% 88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

1.3.1.a Results
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Indicator 1.3.1.b: Percentage of projects documenting measurable impact in building the capacity of host 

country nationals

FY 2013 

Target

FY 2013 

Result

Target 

Met

86% 88% ü

Rationale: The use of multiple sources, including host country beneficiaries, regarding Volunteers’ capacitybuilding efforts allows posts to form more evidence-based opinions on the impact of their Volunteers. As a 

result, project managers can replicate successes and address challenges in skill transfer. 

Discussion of Result: The target was met. Of the 168 

Peace Corps projects operational in FY 2013, the agency 

documented an increase in host country national capacity 

through two or more sources in 148 projects (88 percent). The 

agency collected data or evidence on the impact of Volunteers’ 

work in 166 projects (99 percent). The agency utilized the 

following sources to document the impact of Volunteers:

• Conversations with host country nationals during site 

visits (97 percent)

• Volunteer Reporting Tool (92 percent)

• Project Advisory Committees (74 percent)

• Direct observations by Peace Corps staff (67 percent)

In many cases, posts used planned, routine visits with counterparts, beneficiaries, and partners to collect data on 

Volunteer impact. Additionally, 12 posts collected impact data through the pilot of the new counterpart survey.

The rollout of standard M&E training for Volunteers, as well as the intensive regional M&E workshops, has 

increased the M&E capacity of Volunteers and staff. Two dedicated, full-time M&E staff have also been hired 

in the Europe, Mediterranean, and Asia region (based at Peace Corps headquarters) and the Inter-America 

and the Pacific region (field-based). Volunteers and posts now have additional skills and tools to evaluate the 

effectiveness of projects in building the capacity of host country nationals.

The lack of baseline data remains a major challenge. Without baseline data related to Volunteers’ work, the 

agency is unable to adequately measure the change in host country national capacity that occurs as a result 

of the work of Volunteers. The agency is taking steps to address this problem. Baseline data collection is now 

included in the new country entry guide, ensuring that this becomes a standard operating procedure.

Strengthening Future Performance: Improvements to the Volunteer Reporting Tool will be completed in 

FY 2014. The combination of an improved reporting tool, increased baseline data collection, and standard 

M&E training will allow Volunteers to report progress on standard sector indicators, including those indicators 

tracking behavior change, more accurately. In addition, the agency will launch a standardized counterpart 

survey to measure the influence of Volunteers and their project work on host country national capacity building 

from the perspective of those with whom they work most closely. 

Data Source: Overseas post data call

86% 91% 85%

97%

83% 88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011 FY 2012 FY 2013

1.3.1.b Results
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Indicator 1.3.1.c: Percentage of partner organizations at post that report their assigned Volunteer fulfilled 

their requested need for technical assistance

FY 2013 

Target

FY 2013 

Result

Target 

Met

75% 61% û

Rationale: Positive feedback from partner organizations about the work of Volunteers indicates that the Peace 

Corps is effective in transferring skills to local beneficiaries.

Discussion of Result: The target was not met.

Volunteers partnered with more than 6,000 organizations 

in FY 2013, and 61 percent reported their assigned 

Volunteer fulfilled their requested need for technical 

assistance. 

Partners cited the training provided by Volunteers, 

regardless of the sector, and their work with youth as the 

primary examples of how they met the partners’ need for 

technical assistance. A partner in Morocco commented on 

the assigned Volunteer:

“The [Volunteer] has a unique way in his 

interactions and interpersonal communication. He has been able to impress the youth, and they are 

coming in increasing numbers because he has been able to adapt to his environment ... in a very short 

time. Participation has increased due to his calm, patient demeanor. He’s a leader for the youth.”

The lack of reliable data collection methods and tools for this indicator remains a major constraint. As a result, 

19 posts did not report on the indicator. From the 42 posts that reported, 89 percent of partner organizations 

report their assigned Volunteer fulfilled their need for technical assistance. 

Strengthening Future Performance: Posts currently collect data for this indicator through a variety of means. 

The new counterpart survey will serve as a tool for the standard collection of counterpart feedback. 

Data Source: Overseas post data call

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

organizations, and communities served by Volunteers 

Strategy: Promote a better understanding of Americans

• Volunteers promote 

host country national 

learning about Americans 

through their work and life 

experiences

• Host country individuals and 

communities learn about 

Americans through shared 

experiences with Volunteers

• Individuals and communities 

are more willing to trust and 

work with Americans

• Peace and friendship 

develops between the 

American people and people 

in other countries

Activities Outcomes Impact
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Volunteers promote a better understanding of Americans by becoming an integral part of the communities 

where they serve—forging long-lasting relationships with local people and working collaboratively to address 

the goals of the local community. 

Information from the Host Country Impact Studies that have been conducted since 2008 suggests that Volunteers 

have been successful in promoting a better understanding of Americans; however, the lack of consistent feedback 

from the people with whom the Volunteers live and work hampers the agency’s ability to monitor progress year to 

year. In FY 2013, two of three performance targets were met. One indicator was monitored. 

Performance Goal Results

Performance Goal Performance Indicators FY 2013 

Target

FY 2013 

Result

Target 

Met

2.1.1: The work and life 

experiences of Volunteers 

in country promote host 

country national learning 

about Americans

2.1.1.a. Percentage of Volunteers who report 

their training prepared them to manage cultural 

differences during service adequately or better

90% 93% ü

2.1.1.b. Percentage of posts conducting 

supervisory and counterpart training on 

working effectively with Volunteers

95% 100% ü

2.1.1.c. Percentage of host country nationals 

who report positive opinions of Americans 

through their interactions with Volunteers

Monitor -- --

2.1.1.d. Percentage of Volunteers who report 

their activities and interactions help promote 

a better understanding of Americans on the 

part of the peoples served

68% 67% û

üTarget met         ûTarget not met         

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 who report their training prepared them to manage cultural 

differences during service adequately or better

FY 2013 

Target

FY 2013 

Result

Target 

Met

90% 93% ü

Rationale: To promote a better understanding of Americans in the communities where they serve, Volunteers must 

first learn how to live and work in communities with cultures different than their own. Training provided by the 

Peace Corps builds skills in managing cultural differences and living and working in a culturally appropriate manner. 
48 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

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Discussion of Result: The target was met. Performance 

has been sustained at a high level since FY 2008. The agency 

continues to measure and set targets for this indicator to 

ensure this high level of achievement is sustained. As a result, 

the agency works to maintain performance at the 90 percent 

level or better to focus scarce resources on improving 

training where it is most needed. 

The Managing Cultural Differences session remains 

one of the most highly-rated training sessions provided 

by the Peace Corps. In FY 2013, following the hiring 

of a specialist in intercultural learning, the agency 

also developed an intercultural learning strategy to enhance support to Volunteers in managing the cultural 

differences they encounter in their project work. 

Strengthening Future Performance: The agency will continue to provide Volunteers with standardized 

intercultural training sessions to prepare them to appropriately manage cultural differences in their 

communities. The agency has also hired a specialist in intercultural learning to implement the intercultural 

learning strategy which will provide additional support for Volunteers in this area. 

Data Source: Annual Volunteer Survey

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

effectively with Volunteers

FY 2013 

Target

FY 2013 

Result

Target 

Met

95% 100% ü

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

understand American culture and Peace Corps’ approach to development. When supervisors and counterparts 

are well-equipped to help Volunteers adjust to the local community and pursue their project objectives, 

Volunteers are better positioned to promote local learning about Americans. 

Discussion of Result: The target was met. All posts 

offered supervisory and counterpart training this year. 

The agency helps to build relationships between 

counterparts and Volunteers by providing both with 

strategies for working effectively together. The training 

of counterparts complements the sessions provided to 

Volunteers on working effectively with their counterparts 

and community partners (discussed in indicator 1.2.1.c).

Counterpart training sessions in FY 2013 contributed to 

setting appropriate expectations for counterparts about 

the role of the Volunteer and how they will collaborate. 

Many posts reported that making the training interactive and engaging host country participants in the 

development and facilitation of the training were the most successful strategies. In Uganda, for example, 

91% 92% 91% 90% 93% 93%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

2.1.1.a Results
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a second-year Volunteer and her counterpart participated in the training session by offering their shared 

perspective on the Volunteer/counterpart relationship.

Strengthening Future Performance: The agency piloted a counterpart survey at multiple posts across all 

regions and sectors in FY 2013. The results will help refine the instruments and methods used in the Peace 

Corps’ first standardized counterpart survey to be launched agencywide in FY 2014. The survey will provide 

data directly from counterparts on a number of topics, including the effectiveness of both formal and informal 

counterpart training. 

Data Source: Overseas post data call 

Indicator 2.1.1.c: Percentage of host country nationals who report positive opinions of Americans through 

their interactions with Volunteers

FY 2013 

Target

FY 2013 

Result

Monitor --

Rationale: A positive change in host country nationals’ opinions of Americans through interactions with 

Volunteers indicates that host country nationals are learning about Americans.

Discussion of Result: Results for this indicator are based on findings from Host Country Impact Studies. 

Host Country Impact Studies are independent evaluations of the impact of Volunteers based on information 

collected directly from host country counterparts, beneficiaries, and host families. They are significantly less 

costly than impact evaluations typically conducted by other development organizations. However, due to 

resource constraints, only a few studies can be completed each year. Therefore, results cannot be generalized 

to agency efforts worldwide, and targets are not set for this indicator. Results are monitored, however, and the 

insights gathered from the studies help to inform management decisions.

No new Host Country Impact Studies were conducted in FY 2013. As a result, data are not available for this 

indicator.

Since FY 2008, 24 studies have been conducted of projects in 24 countries. In total, more than 3,000 interviews 

of host country nationals were conducted to capture their perceptions on how Volunteers met the needs of 

the community and promoted a better understanding of Americans. During FY 2013, six of the studies were 

finalized and published on the Peace Corps website: Fiji, Ghana, Nicaragua, Paraguay, Thailand, and Togo.

Results from the studies suggest that the combination of frequent social and professional interactions between 

Volunteers and host country nationals builds relationships of trust and increases understanding, leading to 

changes in opinions. Exemplifying a common theme from counterpart responses, one Volunteer counterpart in 

Thailand described their new perspective on Americans: “I remember the enthusiasm, strong commitment, and 

determination of the Volunteer.”

Published studies, as well as short summaries, can be found at www.peacecorps.gov/open/evaluations. The 

agency plans to publish all completed studies by FY 2014. 

Strengthening Future Performance: The agency will conduct a meta-analysis of completed Host Country 

Impact Studies by the end of the second quarter of FY 2014. A new counterpart survey will also provide 

evidence on the effect of Volunteers on improving the perception of Americans among host country nationals.

Data Source: Host Country Impact Studies
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Indicator 2.1.1.d: Percentage of Volunteers who report their activities and interactions help promote a 

better understanding of Americans on the part of the peoples served

FY 2013 

Target

FY 2013 

Result

Target 

Met

68% 67% û

Rationale: Volunteers’ perceptions of the impact of their activities and interactions are one measure of the 

degree to which they are promoting host country nationals’ learning about Americans.

Discussion of Result: The target was not met. The 

agency has maintained a steady level of performance since 

the measure was modified in the FY 2011 Annual Volunteer 

Survey to capture Volunteers’ perceptions of the impact of 

both their activities and their interactions rather than solely 

the impact of their work. Previous indicators did not fully 

capture the interactions that Volunteers have with local 

people outside of their assigned projects.

Volunteers regularly report a more modest view of their 

impact in promoting a better understanding of Americans 

when compared to direct assessment by host country 

counterparts or beneficiaries themselves. The reason for this discrepancy is not entirely clear, but may be due 

to a variety of factors: the outcomes and impacts of the Volunteer’s work may not be immediately evident, 

Volunteers may need (and are now receiving) additional training on how to more accurately assess and report 

the impact of their work, and counterparts and beneficiaries are in a position to take a longer view of the impact 

that several generations of Volunteers have had in their communities. 

Strengthening Future Performance: Volunteers should begin to develop a more accurate understanding of 

their impact with the implementation of standardized M&E training through the Focus In/Train Up strategy. 

The new counterpart survey will also provide impact information that can be triangulated with Volunteer 

perceptions and other data. 

Data Source: Annual Volunteer Survey

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

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

75% 74% 68% 65% 68% 67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011 FY 2012 FY 2013

2.1.1.d Results

Strategy: Increase Americans’ awareness of other peoples and cultures

•

•

• •

•

Activities Outcomes Impact
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Volunteers, both during and after their term of service, share their experiences with family, friends, and the 

American public. In doing so, they increase Americans’ awareness of other cultures and global issues. The 

agency manages programs and hosts events to facilitate Volunteers’ and returned Volunteers’ efforts to 

promote a better understanding in the United States of the people, cultures, and countries where they served.

In FY 2013, three of five performance targets were met. Initiating and strengthening operations in the Office 

of Third Goal and Returned Volunteer Services, established in 2012, was the agency’s principal strategy for 

improving third goal outreach this year. 

Performance Goal Results

Performance Goal Performance Indicators FY 2013 

Target

FY 2013 

Result

Target 

Met

3.1.1: Volunteers share their 

in-country experiences with 

family, friends, and the 

American public

3.1.1.a. Percentage of Volunteers who report 

active participation in the Coverdell World 

Wise Schools/Correspondence Match 

Program

27% 13% û

3.1.1.b. Number of individuals and 

organizations supporting the Peace Corps 

Partnership Program

10,500 10,549 ü

3.1.1.c. Percentage of Volunteers who report 

sharing their experiences with family, friends, 

and/or the American public 

98% 100% ü

3.1.2: Increase returned 

Volunteers cultural 

outreach to the American 

public through Peace Corps 

programs

3.1.2.a. Number of returned Volunteers 

participating in agency-initiated activities 10,500 10,206 û

3.1.2.b. Number of educational institutions 

where returned Volunteers engage in third 

goal activities

810 1,485 ü

üTarget met         ûTarget not met         
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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 who report active participation in the Coverdell World Wise 

Schools/Correspondence Match Program

FY 2013 

Target

FY 2013 

Result

Target 

Met

27% 13% û

Rationale: The Coverdell World Wise Schools/

Correspondence Match Program provides opportunities 

for American youth and teachers to learn about the 

customs and cultures of different countries through crosscultural educational curriculum and interactions with 

currently serving Volunteers. 

Discussion of Result: The target was not met. The 

agency has continued to face challenges in increasing 

active participation in the Correspondence Match 

program. The FY 2013 result (13 percent) declined 

slightly from FY 2012 (15 percent).

The low result can partially be attributed to measurement error. Volunteers report on this indicator via the 

Annual Volunteer Survey, which is conducted during the summer months when the American schools that 

Volunteers are interacting with are not in session. If asked the same question during a time of year when 

American schools are in session, Volunteers may respond differently.

To identify opportunities to improve the program, the agency’s Leadership Development Academy chose to 

study the Correspondence Match program for its capstone project. The Academy identified specific barriers to 

the success of the program and developed recommendations for performance improvement.

Strengthening Future Performance: The agency will implement the Correspondence Match program 

recommendations provided by the Leadership Development Academy, such as encouraging Volunteers to 

identify the educators they will work with prior to initiating their service and exploring the use of partnerships 

to connect educators and classrooms to Volunteers.

Data Source: Annual Volunteer Survey

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

FY 2013 

Target

FY 2013 

Result

Target 

Met

10,500 10,549 ü

Rationale: By donating to a community-driven, Volunteer-developed Peace Corps Partnership Program 

project (http://donate.peacecorps.gov), American individuals and organizations learn about host country 

38% 38% 40%

22%

15% 13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011 FY 2012 FY 2013

3.1.1.a Results
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communities and the issues they face. Donors build their understanding about different peoples and cultures 

and about global development issues.

Discussion of Result: The target was met. In FY 2013, 

10,549 donors to the program made 11,141 donations for 

a total of more than $2 million to 810 Volunteer projects. 

While the target was exceeded, there was a decrease in the 

total number of donors in FY 2013. This was due primarily 

to a decrease in the overall number of Volunteers in the 

field which reduced the number of Volunteer-initiated 

Peace Corps Partnerships Program projects. 

In FY 2013, the agency established a new web-based 

grants management system and consolidated grant 

applications from Volunteers into one process. These changes have expanded Volunteers’ options for securing 

small grants for projects and consolidated grants management into a faster, more transparent process.

Strengthening Future Performance: The Peace Corps Partnership Program will celebrate its 50th anniversary 

in FY 2014. The agency will work to give the program greater visibility and reach out to additional donors in 

conjunction with this anniversary. Streamlining the website used to post projects and make donations will 

continue through FY 2014. 

Data Source: Peace Corps Database System 

Indicator 3.1.1.c: Percentage of Volunteers who report sharing their experiences with family, friends, and/

or the American public

FY 2013 

Target

FY 2013 

Result

Target 

Met

98% 100% ü

Rationale: When Volunteers share their experiences with family, friends, and the American public, the 

American people develop a better understanding of other cultures and global issues.

Discussion of Result: The target was met. In FY 2013, 

according to the Annual Volunteer Survey results, 

essentially 100 percent of Volunteers reported sharing 

their experiences with the American public. All but 16 of 

more than 6,400 respondents indicated involvement in 

such activities. 

The agency continues to measure and set targets for this 

high-performing indicator to ensure currently serving 

Volunteers are engaged in third goal activities. In the past, 

third goal activities have been thought of as primarily the 

work of returned Volunteers who have already completed 

their assignments and returned to the United States. In reality, currently serving Volunteers are well-positioned 

to promote a better understanding of the people and cultures where they live and work, particularly as the 

internet and mobile technology increasingly spreads to the communities where Volunteers serve.
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The impact of technology can be seen in the mechanisms that Volunteers use to share their experiences. From 

FY 2011 to FY 2013, Volunteers’ use of social media to tell their stories increased from 67 percent to 80 percent. 

Additionally, 56 percent of Volunteers developed personal websites or blogs, compared to 53 percent in FY 2011.

The Blog It Home contest is one example of an agency activity that encourages currently serving Volunteers to 

engage in third goal activities. The contest spotlighted the work that Volunteers do to create web blogs to share 

their experiences abroad with readers at home and across the world. 

Strengthening Future Performance: As technology evolves, the agency will continue to explore new ways to 

facilitate sharing Volunteer experiences with the American public. 

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 Volunteers participating in agency-initiated activities

FY 2013 

Target

FY 2013 

Result

Target 

Met

10,500 10,206 û

Rationale: When returned Volunteers participate in agency-initiated activities, they share their Peace Corps 

experiences with the American public, increasing awareness of other peoples, cultures, and global issues.

Discussion of Result: The target was not met. Returned 

Volunteers have an ongoing responsibility to build a better 

understanding of peoples across the world. They continue 

service by sharing their experiences with the American 

public, promoting volunteerism, and engaging in public 

service. The agency sponsors a number of activities that 

provide returned Volunteers with opportunities to promote 

the third goal and to aid in Volunteers’ transition back to 

the United States after their assignment. 

The engagement of returned Volunteers through agencyinitiated activities continued its upward trend in FY 2013. 

The agency invited returned Volunteers to share their experiences at Peace Corps general information sessions 

throughout the United States to help recruit the next generation of Volunteers. The agency held two national 

returned Volunteer career conferences and four regional returned Volunteer events to help recently returned 

Volunteers translate their experiences to friends, family, employers, and the public. Notably, the agency held its’ 

first-ever Third Goal Mobilization Summit, a two-day interactive event that brought returned Volunteers together to 

exchange ideas and acquire new tools to help Americans better understand the countries where Volunteers serve. 

With the expansion of the Office of the Third Goal and Returned Volunteer Services in FY 2013, the agency 

made progress in improving third goal and returned Volunteer services, including the development of a job 

posting site for returned Volunteers (www.peacecorps.gov/resources/returned/careerlink) and improvement 

in marketing and promotion for Peace Corps week which yielded an increase in returned Volunteer registration 

by more than 300 participants. 
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Strengthening Future Performance: Moving forward, the agency plans to improve the training that 

Volunteers receive on the importance of promoting the third goal and continuing their service when they 

complete their Volunteer assignments. The agency is also planning to develop surveys for returned Volunteers 

and employers that hire returned Volunteers to identify opportunities to improve the career and transition 

services that the agency provides to returned Volunteers.

Data Source: Office of Third Goal and Returned Volunteer Services and Office of Volunteer Recruitment and 

Selection

Indicator 3.1.2.b: Number of educational institutions where returned Volunteers engage in third goal 

activities

FY 2013 

Target

FY 2013 

Result

Target 

Met

810 1,485 ü

Rationale: Through Peace Corps programs with educational institutions, returned Volunteers promote a better 

understanding of global issues and other cultures on the part of American youth, students, and faculty.

Discussion of Result: The target was met. The target 

was significantly exceeded due to increased promotion 

of Peace Corps Week and more complete data collection 

resulting from additional staffing resources in the Office of 

Third Goal and Returned Volunteer Services.

This indicator tracks the number of educational 

institutions involved in the Coverdell World Wise Schools 

Speakers Match Program and the Coverdell Fellows 

Program. 

Through the Speakers Match program, K–12 schools and 

youth organizations request returned Volunteers to visit and share their experiences. The Coverdell Fellows 

Program connects returned Volunteers with graduate programs in colleges and universities across the country. 

Through the program, Returned Volunteers earn a graduate degree while completing an internship in an 

underserved U.S. community. In the process, they share their experience as a Volunteer with their colleagues, 

friends, and the individuals they are serving. 

In FY 2013, returned Volunteers spoke at 1,401 educational institutions through the Speakers Match program. 

In addition, 84 graduate schools enrolled 586 returned Volunteers through the Coverdell Fellows Program.

Strengthening Future Performance: The agency will increase opportunities for returned Volunteers by 

reaching out to new potential partners for the Speakers Match and Coverdell Fellows programs. The agency 

will expand the geographic reach of the Coverdell Fellows program across the country, work to identify 

minority-serving institutions as partners, and seek out partnerships in new degree areas to provide returned 

Volunteers with more graduate school options. 

Data Source: Office of Third Goal and Returned Volunteer Services and Office of Strategic Partnerships

-

502

829 920

656

1,485

 -

 200

 400

 600

 800

 1,000

 1,200

 1,400

 1,600

FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013

3.1.2.b Results
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Strategic Goal 4: Provide Volunteers who represent the diversity of Americans to meet the evolving 

technical needs of host countries

The agency meets the skill needs of local communities by recruiting and selecting individuals who have the 

skills, experiences, and maturity to be successful Peace Corps Volunteers. Priority is also placed on ensuring 

that Volunteers reflect the diversity of America as this contributes to a better understanding of Americans on 

the part of host countries.

In FY 2013, two of five performance targets were met. The agency’s sustained focus on diversity recruitment 

over the past few years has resulted in continued high performance, moving the agency closer to a Volunteer 

corps that better represents the American public. At the same time; however, the agency has also seen a 

reduction in the percentage of Volunteer positions that were ultimately filled by applicants for service. A 

result of the decrease in the number of applications for Peace Corps service and inefficiencies in the Volunteer 

Delivery System related to the implementation of a new electronic applicant processing system. 

Performance Goal Results

Performance Goals Performance Indicators FY 2013 

Target

FY 2013 

Result

Target 

Met

4.1.1: Recruit Volunteers who 

balance the needed manpower 

and technical needs at post 

with the available applicant 

pool and its skills

4.1.1.a. Percentage of trainees requested 

for generalist assignments 66% 69% ü

4.1.1.b. Percentage of trainee requests 

filled by trainee inputs 95% 90% û

4.1.2: Manage Volunteer 

recruitment functions in an 

effective and efficient manner

4.1.2.a. Nominee attrition rate 26% 28% û

4.1.2.b. Number of days from application 

to invitation -- -- --

Strategy: Recruit a skilled and diverse Volunteer corps

• Recruit Volunteers who 

balance the skill needs at 

post with the available 

applicant pool

• Manage Volunteer 

recruitment functions 

effectively and efficiently

• Recruit and place Volunteers 

who reflect the diversity of 

America

• Volunteers provided at post 

meet the evolving technical 

needs of host countries

• Trainees assigned to serve 

overseas represent the 

diversity of America

• Individuals and communities 

gain a more accurate 

understanding of and are 

more willing to trust and 

work with Americans

• Local conditions are 

improved

• Communities have capacity 

to solve problems and serve 

as model for others

Activities Outcomes Impact
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Performance Goals Performance Indicators FY 2013 

Target

FY 2013 

Result

Target 

Met

4.2.1: Recruitment and 

Volunteer placement efforts 

reflect the diversity of 

Americans 

4.2.1.a. Percentage of applications from 

individuals age 50 and older 8.5% 5.3% û

4.2.1.b. Percentage of applications from 

individuals of diverse ethnicities 26% 30% ü

üTarget met         ûTarget not met         

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: Percentage of trainees requested for generalist assignments

FY 2013 

Target

FY 2013 

Result

Target 

Met

66% 69% ü

Rationale: This indicator is designed to balance overseas posts’ needs for skilled Volunteers with the applicant 

pool traditionally interested in Peace Corps service: recent college graduates with limited professional 

experience.

Discussion of Result: The target was met. Out of 

the 3,591 trainees requested by posts in FY 2013, 69 

percent were requested for generalist assignments. 

These assignments have lower skill requirements and are 

typically filled by recent college graduates with limited 

professional experience.

In FY 2013, the agency finalized a review of all Volunteer 

projects based on the sector schematics and technical 

training packages developed through the Focus In/Train 

Up strategy. This agencywide initiative was designed to 

realign programming and training to leverage the skills of 

recent college graduates and provide Volunteers with the skills they need to be successful.

Strengthening Future Performance: Moving forward, the agency will better connect the skill requirements 

for Volunteer service with the new sector and project structure. This change will provide the agency with better 

information on which skills Peace Corps applicants need to develop in order to successfully transfer skills as 

Volunteers.

Data Source: Peace Corps Database System 

59% 60% 63% 64% 69% 69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

4.1.1.a Results
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Indicator 4.1.1.b: Percentage of trainee requests filled by trainee inputs

FY 2013 

Target

FY 2013 

Result

Target 

Met

95% 90% û

Rationale: The agency responds to trainee requests by recruiting and selecting individuals for Peace Corps 

service (trainee inputs). This indicator measures the result of the agency’s efforts to meet posts’ requested 

levels of Volunteers that will enable them to meet their programs’ technical needs.

Discussion of Result: The target was not met. This 

indicator is the primary indicator of success of the 

Volunteer Delivery System: it provides a direct measure 

of the agency’s ability to recruit, retain, select, and field 

Volunteers at the right time and with the requested skills 

from host countries. 

Declining performance on this indicator from FY 2012 to 

FY 2013 (a seven percentage point reduction) is largely 

due to the steady decrease in the number of applications 

received for service and the challenges associated with 

implementing a new application processing system. 

The agency received 10,118 applications for service this year, 10,091 in FY 2012, and 12,206 in FY 2011. The low 

number of applications has produced challenges in meeting the demand for skilled Volunteers at the quantity 

requested by posts.

A new electronic application processing system went live in FY 2012, and much of FY 2013 was devoted to 

learning the new system, dual-processing the individuals who applied under the old system, and changing 

processes to leverage the new technology. 

Strengthening Future Performance: Increasing the number of applications received for service is a major 

agency priority. Significant process and structural changes are currently underway and will be implemented 

moving forward, including reducing the length of the Volunteer application, expediting the application process, 

providing applicants with greater transparency and choice regarding their potential Volunteer assignments, 

and other reforms designed to improve the application experience.

Data Source: Peace Corps Database System

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

Indicator 4.1.2.a: Nominee attrition rate

FY 2013 

Target

FY 2013 

Result

Target 

Met

26% 28% û

Rationale: “Nominees” are applicants who have been determined to be eligible, suitable, and skilled for Peace 

Corps service. Significant agency resources are spent processing nominees through the Volunteer Delivery 

101% 100% 101% 97% 97% 90%

0%

20%

40%

60%

80%

100%

FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013

4.1.1.b Results
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System. A higher percentage of nominees who become trainees indicate greater effectiveness and efficiency of 

Volunteer recruitment functions.

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

certain percentage of applicants are expected to drop out 

of the process, the agency works to reduce dropouts to the 

extent possible. The Peace Corps has minimal influence, 

however, over some of the reasons that applicants cite for 

dropping out, such as financial or family responsibilities, 

choosing to attend graduate school, or simply no longer 

being interested in Peace Corps service. However, the 

agency can, for example, mitigate some dropouts related 

to poor communication between the agency and the 

applicant or lengthy processing times. 

With the launch of the new electronic application processing system in FY 2012, the agency modified the 

medical and placement process to extend invitations to applicants earlier in the process in an effort to improve 

retention. More data is needed to form conclusions on the effectiveness of this strategy.

Strengthening Future Performance: The agency will develop an applicant retention strategy to encourage 

more qualified and talented applicants to complete the process. Improvements listed under indicator 4.1.1.b 

will also likely result in increased applicant retention.

Data Source: Peace Corps Database System

Indicator 4.1.2.b: Number of days from application to invitation 

FY 2013 

Target

FY 2013 

Result

Target 

Met

-- -- --

Rationale: Reducing the processing time for applicants contributes to higher retention of applicants and 

reduces congestion in the system.

Discussion of Result: A target was not set for this indicator. As a result of process changes with the 

electronic application processing system, the agency could not reliably measure the three stages of the 

application process that together constitute this indicator. As a result, a target was not set for this indicator in 

FY 2013. 

The length of the processing time for applicants continues to be a challenge. For individuals who entered-onduty in FY 2013, the time from the submission of their application to the start of their Peace Corps service 

averaged more than 13 months. Reducing the processing time for applicants is a major priority for the agency in 

FY 2014 and beyond.

Strengthening Future Performance: The agency will reduce the length and complexity of the application 

process to improve the application experience and increase applications. The agency will also identify 

bottlenecks in the current process and develop strategies for reducing applicant wait time.

Data Source: Peace Corps Database System
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Performance Goal 4.2.1: Recruitment and Volunteer placement efforts reflect the diversity of Americans

Indicator 4.2.1.a: Percentage of applications from individuals age 50 and older

FY 2013 

Target

FY 2013 

Result

Target 

Met

8.5% 5.3% û

Rationale: The majority of Peace Corps applicants are recent college graduates with limited professional 

experience. Increasing applications from individuals age 50 and older will provide posts with Volunteers with 

greater professional experience who better represent the diversity of America.

Discussion of Result: The target was not met. In 

FY 2013, 536 individuals age 50 and older applied to serve 

as Peace Corps Volunteers, 5.3 percent of all applications. 

Of the Volunteers serving in FY 2012, eight percent were 

ages 50 and older.

Performance continues to decline on this indicator. The 

resources allocated to the recruitment of individuals age 50 

and older have been reduced significantly over the last few 

years due to shifts in agency priorities. 

At the same time, the agency continues to work with 

partners to maintain a presence in the age 50 and older 

community. Notably, the agency collaborated with AARP and the Foreign Service Officers Retiree Association 

in marketing and outreach. 

Strengthening Future Performance: The agency will continue to conduct targeted outreach to Americans 

age 50 and older to encourage their participation in the Peace Corps. This effort will primarily leverage existing 

strategic partnerships to expand the reach of Peace Corps recruiting efforts.

Data Source: Peace Corps Database System

Indicator 4.2.1.b: Percentage of applications from individuals of diverse ethnicities

FY 2013 

Target

FY 2013 

Result

Target 

Met

26% 30% ü

Rationale: Increasing the number of applications from individuals of underrepresented ethnic and racial 

groups will result in a Volunteer population that more accurately reflects the diversity of America. 

Discussion of Result: The target was met. The agency has made diversity recruitment a priority, and 

performance continues to improve. In FY 2013, 30 percent of applications came from individuals of diverse 

ethnicities, defined as individuals who disclosed the following race and ethnic designations in the submission of 

their Peace Corps application: Hispanic or Latino, Black or African American, Native Hawaiian or Other Pacific 

Islander, Asian, and/or American Indian or Alaska Native. 

The Peace Corps devoted significant attention to diversity recruitment in FY 2013 including increasing the 

9.5% 8.2% 7.3% 7.1% 6.6% 5.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013

4.2.1.a Results
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20% 21% 24% 26% 27% 30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013

4.2.1.b Results number of national and local diversity-focused events 

with partner organizations, boosting attendance at these 

events through targeted marketing and outreach, and 

maintaining contact with participants through national 

webinars. 

The agency established formal partnerships with Alpha 

Phi Alpha Fraternity Incorporated and Kappa Alpha 

Psi Fraternity Incorporated to expand the pan-hellenic 

outreach network. Through this partnership, the agency 

has engaged more than 100 undergraduate students to 

assist Peace Corps recruiters in reaching out to members 

of these service-minded organizations. 

The agency has also increased its outreach to first and second generation U.S. citizens—who possess the 

necessary cross-cultural skills and an affinity for international service. The agency continues to collaborate 

with Hispanic communities through activities with organizations such as the National Council of La Raza and 

the Hispanic Association of Colleges and Universities.

Retention of applicants from these ethnic groups remains a challenge. In FY 2013, 30 percent of applicants 

were from these ethnic groups, compared to 24 percent of the Volunteer population. The time period when 

these dropouts occur is known (from application to nomination); however, the key factors that contribute to 

this discrepancy are currently unknown. 

Strengthening Future Performance: The agency will evaluate the challenges of retaining applicants from 

underrepresented racial and ethnic groups to identify strategies for improvement. 

Data Source: Peace Corps Database System
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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 Peace Corps maximizes Volunteers’ well-being by employing rigorous safety and security prevention and 

response systems and providing Volunteers with high-quality medical and mental health services. The agency 

effectively and efficiently manages its human and financial resources and continuously reviews critical work 

processes for additional areas for improvement.

In FY 2013, five of 13 performance targets were met. Indicator 5.1.1.e is monitored, and a target is not set. The 

agency made progress on key Volunteer safety, security, and health reforms, including, the implementation of 

the Kate Puzey Peace Corps Volunteer Protection Act of 2011.

Performance Goal Results

Performance Goals Performance Indicators FY 2013 

Target

FY 2013 

Result

Target 

Met

5.1.1: Enhance the 

safety and security 

of Volunteers

5.1.1.a. Percentage of Peace Corps Volunteers 

who report their safety and security training 

is effective or very effective

73% 71% û

5.1.1.b. Percentage of Posts that have their 

safety and security systems reviewed by a 

Peace Corps safety and security officer

33% 31% û

5.1.1.c. Percentage of all critical Volunteer safety 

and security recommendations made by Peace 

Corps safety and security officers implemented 

by posts by the agreed upon time

88% 84% û

5.1.1.d. Percentage of Volunteers who report 

they feel more than adequately safe or very 

safe where they live and work

91% 83% û

5.1.1.e. Ratio of unreported serious crimes to 

reported serious crimes Monitor results

Strategy: Support Volunteers through the effective and efficient use of agency resources

• Enhance the safety and 

security of Volunteers

• Provide quality medical and 

mental health services to 

Volunteers

• Effective and responsive 

financial management

• Effective management of 

Peace Corps resources

• Improve critical processes

• 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 processes 

and manages resources in 

an effective and efficient 

manner

• Supports the Peace Corps 

mission and core goals

Activities Outcomes Impact
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Performance Goals Performance Indicators FY 2013 

Target

FY 2013 

Result

Target 

Met

5.1.2: Provide 

quality medical 

and mental health 

services to trainees 

and Volunteers 

5.1.2.a. Percentage of Peace Corps Volunteers 

who rate their satisfaction with health care 

received from Peace Corps medical officers 

as adequate or better

94% 91% û

5.1.2.b. Percentage of Peace Corps Volunteers 

who report the emotional support they 

received from staff as adequate or better

83% 82% û

5.1.2.c. Percentage of Peace Corps Volunteers 

who report adequate or better support in 

coping with stress from living and working 

in their community

76% 76% ü

5.2.1: Provide 

effective and 

responsive financial 

management that 

accurately reflects 

domestic and 

overseas operations 

5.2.1.a. Percentage of posts and 

headquarters offices that manage resources 

within approved budgets and operational 

plans

95% 75% û

5.2.1.b. Percentage of posts and 

headquarters offices whose Integrated 

Planning and Budgeting System (IPBS) 

strategic goals support the agency’s 

strategic plan goals

98% 98% ü

5.2.2: Ensure 

the effective 

management 

of Peace Corps 

resources  

5.2.2.a. Conduct a Country Portfolio Review 

process to assess and formulate financial 

and Volunteer resource allocations at all 

posts

Complete 

annually Completed ü

5.2.2.b. Percentage of posts and 

headquarters offices that adhere to agencywide staffing policies and procedures

90% 82% û

5.2.2.c. Percentage of posts and 

headquarters offices that benefit from 

collaboration with global strategic partners

83% 84% ü

5.2.3: Ensure 

the optimal 

performance of 

critical Peace Corps 

processes 

5.2.3.a. Identify at the beginning of the fiscal 

year and complete by the end of the fiscal 

year improvements to one mission-critical 

work process

Complete 

annually Completed ü

üTarget met         ûTarget not met         
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Performance Goal 5.1.1: Enhance the safety and security of Volunteers

Indicator 5.1.1.a: Percentage of Peace Corps Volunteers who report their safety and security training is 

effective or very effective

FY 2013 

Target

FY 2013 

Result

Target 

Met

73% 71% û

Rationale: Safety and security training throughout Volunteers’ service is designed to build awareness of crosscultural issues that may affect personal safety, in-country risks and ways to mitigate those risks, and reporting 

procedures should a crime occur. Volunteers’ perceptions are an indication of the effectiveness of the agency’s 

safety and security training. 

Discussion of Result: The target was not met. Volunteers 

have consistently given high ratings to their safety and 

security training, and performance has remained stable 

even with the higher standard set in the target last year (the 

indicator measures “effective or very effective” responses 

compared to the “adequate or better” standard utilized in 

years past). While the target was not met this year, the level 

of performance was maintained from the previous year.

This year, all posts implemented the four standardized safety 

and security training sessions: personal security, sexual assault 

awareness, reporting procedures, and bystander intervention. However, an evaluation of the implementation of the 

standardized training revealed that two posts had slightly modified the training sessions. Those issues have now been 

addressed, and next year, the Office of Safety and Security will monitor all posts’ compliance with the standardized 

training requirements to avoid deviations from the required content.

Strengthening Future Performance: A number of policy and procedure changes related to safety and security have 

been finalized in the past year. The standard training packages will be updated in FY 2014 to reflect these changes.

Data Source: Annual Volunteer Survey 

Indicator 5.1.1.b: Percentage of posts that have their safety and security systems reviewed by a Peace 

Corps safety and security officer

FY 2013 

Target

FY 2013 

Result

Target 

Met

33% 31% û

Rationale: Each post’s safety and security system is designed to prepare for and support the safety and security 

needs of Volunteers. Posts’ safety and security systems are continuously reviewed to ensure they reflect the 

current safety conditions of the country. Every three years, a full system review is conducted to ensure each 

post’s systems reflect agency policy.

70% 74% 69% 68% 71% 71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

5.1.1.a Results
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0%

21%

33%

28%

32% 31%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013

5.1.1.b Results

Discussion of Result: The target was not met. Regional 

Peace Corps safety and security officers reviewed the safety 

and security systems of 19 posts (31 percent of posts). 

This indicator was designed to ensure that the safety and 

security systems of all posts are reviewed every three years. 

The full safety and security review is comprised of five 

distinct components: a review of compliance with Peace 

Corps manual sections related to safety and security, a 

review of the legal environment in the country, a review 

of Volunteer death procedures with key staff, a risk 

assessment, and a waiver to co-locate offices at the U.S. 

Embassy (if applicable). Issues identified in the review process are assessed by the agency and corrective action 

is taken. The agency’s response to recommendations by Peace Corps safety and security officers is tracked 

through indicator 5.1.1.c. 

Strengthening Future Performance: At the beginning of each year, the agency will communicate which posts 

are scheduled for a full security review. This will give posts the time needed to take any necessary corrective 

actions prior to the review and help to ensure that the agency’s response to unexpected events at other posts do 

not pose a challenge to conducting these scheduled reviews.

Data Source: Office of Safety and Security

Indicator 5.1.1.c: Percentage of all critical Volunteer safety and security recommendations made by Peace 

Corps safety and security officers implemented by posts by the agreed upon time

FY 2013 

Target

FY 2013 

Result

Target 

Met

88% 84% û

Rationale: Peace Corps safety and security officers develop recommendations for improvement based 

on reviews of posts’ safety and security systems. A number of these recommendations are deemed critical 

and necessary to complete within a fixed period of time. The timely implementation of these critical 

recommendations is essential to providing a system that supports the safety and security of Volunteers.

Discussion of Result: The target was not met.

Recommendations are considered “critical” when they 

identify corrective actions that must be implemented to 

ensure the safety and security of Volunteers, such as actions 

that reduce the likelihood or impact of adverse threats or 

events. A response team composed of safety and security 

and regional staff meet throughout the year to identify 

which recommendations are to be deemed “critical.”

In FY 2013, 211 critical recommendations were due for 

completion and 178 were implemented (84 percent).

Challenges in implementing critical recommendations include scheduling conflicts for identifying critical 

recommendations, funding constraints, ownership for closing recommendations, and data management issues 

91% 84%

56%

79% 75%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011

Baseline

FY 2012 FY 2013

5.1.1.c Results
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resulting from collecting and analyzing data from 61 posts across the world.

Strengthening Future Performance: An improved process management system will enable the agency to 

keep better track of safety and security recommendations by designating a timeframe and a person responsible 

for closing the recommendation that is visible to all of the parties involved in the process.

Data Source: Office of Safety and Security

Indicator 5.1.1.d: Percentage of Volunteers who report they feel more than adequately safe or very safe 

where they live and work

FY 2013 

Target

FY 2013 

Result

Target 

Met

91% 83% û

Rationale: When Volunteers report that they feel safe where they live and work, this indicates that the systems 

the agency has developed to ensure the safety and security of Volunteers have been successful from the 

perspective of the Volunteers.

Discussion of Result: The target was not met. Volunteer 

satisfaction with the safety and security support provided 

by the agency has consistently ranked the highest when 

compared to other types of support provided by the Peace 

Corps: the vast majority of Volunteers have reported that 

they feel safe where they live and work. To encourage 

continuous performance improvement in this arena, the 

agency sets high targets for this indicator. While the target 

was not met this year, the result was higher than in the 

previous year. The most significant improvement from 

last year relates to Volunteers’ perceptions of safety where 

they live—an increase from 79 percent in FY 2012 to 81 percent in FY 2013. 

According to the FY 2013 Annual Volunteer Survey, the Peace Corps’ support in the site selection and 

development process is one of the major drivers of Volunteers’ perceptions of safety. The agency is responsible 

for selecting and monitoring Volunteer sites to ensure that there is appropriate work for the Volunteer, the 

community is supportive, and safety and security risks are minimal and controlled. Agency efforts to improve 

site selection and development are noted in indicator 1.1.1.d. 

Recognizing that Volunteers’ sense of safety is also driven by personal factors (such as stress or mental health), 

the agency provides Volunteers with mental health and emotional support (detailed in indicators 5.1.2.b and 

5.1.2.c) and with rigorous training on risk identification and management. Improvements to safety and security 

training are detailed in indicator 5.1.1.a.

Strengthening Future Performance: The agency will continue to improve its safety and security systems, 

including the reforms related to the implementation of the Kate Puzey Peace Corps Volunteer Protection Act. The 

agency will also improve the standard safety and security training modules through rigorous training evaluations.

Data Source: Annual Volunteer Survey

87% 89% 89%

79% 82% 83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

5.1.1.d Results
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Indicator 5.1.1.e: Ratio of unreported serious crimes to reported serious crimes

FY 2013 

Target

FY 2013 

Result

Monitor --

Rationale: A reduction in the ratio of unreported serious crimes will provide the agency the information it 

needs to provide care and support for victims of crime that previously did not feel comfortable disclosing these 

incidents. Improved reporting will allow the agency to provide additional support to Volunteers and produces a 

more accurate account of safety and security issues in the country.

Discussion of Result: The agency did not fully implement the measurement tools necessary for monitoring 

the results for this indicator in FY 2013; as a result, data is not available. 

Modeled on a measure from the Department of Defense, this indicator is designed to demonstrate the 

discrepancy between reported serious crimes and unreported serious crimes. Reported serious crimes are 

defined as incidents disclosed by the Volunteer to post or headquarters staff and catalogued in a secure agency 

database. For the purpose of this indicator, unreported serious crimes are not directly reported by the Volunteer 

to post or headquarters staff but may be disclosed anonymously. Data on unreported serious crimes is currently 

gathered through the Annual Volunteer Survey (AVS). While the AVS provides valid data on Volunteers’ 

experiences and perceptions, it is not designed specifically as a crime victimization survey.

In FY 2013, the Peace Corps made significant progress in developing the Security Incident Questionnaire, 

a new crime victimization survey. The agency hired a survey expert to manage the survey and will pilot the 

survey in November through December 2013. The survey will be fielded later in FY 2014 to Volunteers who are 

approaching the end of their assignment. Security Incident Questionnaire data will provide the agency with 

more accurate information to estimate crime rates and help the agency better understand the factors related to 

underreporting serious crime incidents.

Strengthening Future Performance: The agency will administer the Security Incident Questionnaire in 

FY 2014 to more accurately measure unreported serious crimes. 

Data Source: Office of Safety and Security 

Performance Goal 5.1.2: Provide quality medical and mental health services to trainees and Volunteers

Indicator 5.1.2.a: Percentage of Peace Corps Volunteers who rate their satisfaction with health care 

received from Peace Corps medical officers as adequate or better

FY 2013 

Target

FY 2013 

Result

Target 

Met

94% 91% û

Rationale: Measuring the health status of the patient and patient satisfaction are the two primary methods for 

determining quality of health care. Volunteers reporting on their satisfaction with the health care they receive 

from Peace Corps medical officers is a direct indication of the quality of Peace Corps health care.
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Discussion of Result: The target was not met. Overall, Volunteer satisfaction with Peace Corps medical 

officers is traditionally very high. The result in FY 2013 is consistent with this trend. This high performance can 

be attributed to the agency’s focus on continuous process improvement, hiring top health-care professionals, 

and regular training and development. The slight decline this year is in all likelihood due to turnover among 

medical personnel at posts.

Under the guidance of the agency’s internal Health Care Quality Assurance Council, the Peace Corps 

implemented the following key initiatives in FY 2013 to systematically improve the medical and mental health 

services provided to Volunteers:

•	 Improved staffing model: The agency established a rover Peace Corps medical officer program to 

address medical staff turnover—one of the drivers of Volunteer dissatisfaction. Additional regional 

medical staff were hired to increase the agency’s capacity to care for Volunteers. 

•	 Organizing continuing medical education conferences across disciplines: Through its continuing 

medical education conferences, the agency bridged multiple disciplines and offices to ensure a holistic 

approach to supporting the well-being of Volunteers. The Office of Safety and Security and the Office 

of Victim Advocacy, as well as the Counseling and Outreach Unit and Office of Medical Services, 

participated in continuing medical education conferences in FY 2013 with topics that included 

changes to agency policies related to the care of victims of sexual assault, medical supply inventory, and 

stress reduction for medical staff.

•	 Implementing electronic medical records: The agency made major progress in implementing the 

electronic medical records system in FY 2013. After conducting market research and going through 

the bidding process, a contract for the system was signed—a major milestone. The agency also made a 

significant step toward implementing electronic medical records by converting the applicant medical 

screening process to a fully electronic clearance process. This resulted in a significant reduction in the 

time and money that applicants spend in the application process.

Strengthening Future Performance: The agency will continue to strengthen the quality of its medical and 

mental health services by focusing on improving Volunteer satisfaction under the guidance of the Health Care 

Quality Assurance Council.

Data Source: Annual Volunteer Survey

Indicator 5.1.2.b: Percentage of Peace Corps Volunteers who report the emotional support they received 

from staff as adequate or better

FY 2013 

Target

FY 2013 

Result

Target 

Met

83% 82% û

Rationale: Volunteers experience a range of emotions as they address the complexities of development work in 

their communities—from a sense of accomplishment and pride to loneliness, isolation, and frustration. At the same 

time, they are often far removed from the social support networks to which they are accustomed (e.g., their family 

and friends). Peace Corps staff play a critical role in providing Volunteers with tools and support to sustain their 

emotional health. 

Discussion of Result: The target was not met. Despite falling just short of the FY 2013 target, the result 

is an improvement over last year. This improvement, in addition to the increased activity to better support 
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80% 81% 81% 80% 81% 82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

5.1.2.b Results

the emotional and mental health needs of Volunteers, 

suggests that the agency is making good progress on this 

important issue.

All agency staff members are responsible for providing 

emotional support to Volunteers, including country 

directors, program managers, and medical officers. 

Volunteers can also seek professional help provided 

by counselors in the Counseling and Outreach Unit. In 

addition, support to victims of crime is provided by the 

Office of Victim Advocacy. The agency educates Volunteers on mechanisms for dealing with the unique stress 

factors of Peace Corps service.

In FY 2013, the agency engaged in the following activities to improve the emotional support and mental health 

services provided to Volunteers:

• Conducted extensive training of country directors and safety and security coordinators on how to improve the 

emotional support they provide Volunteers

• Raised awareness of the Counseling and Outreach Unit among Volunteers from 70 percent last year to 79 percent

• Trained all Counseling and Outreach professionals in evidence-based intervention in sexual assault cases

• Provided extensive support to families of deceased Volunteers and affected post staff through overseas visits

• Conducted proactive outreach and advocacy assistance to more than 600 Volunteers who were victims of crime 

• Initiated a change management process related to sexual assault and victimization through a top-down 

approach to organizational culture change

Strengthening Future Performance: To improve the quality of emotional support and mental health services, 

the agency will initiate an assessment of in-country mental health support to allocate agency resources based 

on the different levels of mental health support capabilities across countries. The agency will continue building 

partnerships with nongovernmental organizations and corporate sponsors in countries where Volunteers serve 

to develop holistic emotional support for all Volunteers and to provide healing opportunities for Volunteers 

who are victims of crime. The agency will expand the services provided by the Office of Victim Advocacy by 

hiring additional staff members. 

Data Source: Annual Volunteer Survey

Indicator 5.1.2.c: Percentage of Peace Corps Volunteers who report adequate or better support in coping 

with stress from living and working in their community

FY 2013 

Target

FY 2013 

Result

Target 

Met

76% 76% ü

Rationale: The top four factors that Volunteers associate with stress—their primary project, counterparts or 

community members, communicating in the local language, and cultural adjustments—are related to living and 

working in their local communities. As a result, the support provided by the agency in coping with this stress is a 
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critical component of the agency’s emotional support and mental health services.

Discussion of Result: The target was met. In FY 2013, 

the agency made significant improvement in supporting 

Volunteers to cope with stress—a four percentage-point 

increase from last year.

The agency supports Volunteers through training on 

appropriate coping mechanisms and providing direct 

support through medical officers, country directors, 

program managers, and counseling staff. 

In addition to providing direct emotional and mental 

health support to Volunteers, the agency trains Volunteers 

to prevent and mitigate stress with a complement of stress 

prevention tools and strategies. The success of this training is indicated by the increase in the percentage of 

Volunteers who reported they did not need support in coping with stress (45 percent of Volunteers in FY 2013, 

compared to 19 percent in FY 2012). 

Additionally, as Volunteers’ satisfaction with their worksites can be a major stressor, the agency’s continuing 

efforts to improve site selection and preparation may also have contributed to an upward turn on this indicator. 

Strengthening Future Performance: The agency will focus on improving site selection and preparation to 

reduce potential stress factors before Volunteers arrive. Having a well-prepared site may also reduce stress 

between Volunteers and their counterparts and local community members, who will be more fully aware of the 

Peace Corps’ unique mission and approach to development. Additionally, the agency will continue evaluating 

its approaches to the psychological care and support of Volunteers and further improve the counseling skills of 

post staff. 

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 that manage resources within approved 

budgets and operational plans

FY 2013 

Target

FY 2013 

Result

Target 

Met

95% 75% û

Rationale: Effective financial management includes formulating and executing budgets in a manner consistent 

with operational plans. 

Discussion of Result: The target was not met. The agency under executed its budget in FY 2013 while 

operating under a six-month continuing resolution and facing great uncertainty about the amount of the 

appropriated funding for the year. The agency was ultimately appropriated a budget almost $20 million 

lower than in FY 2012. Facing the constraints of the prolonged continuing resolution period and the lower 

appropriated level of funding, the agency executed its approved budgets and operational plans cautiously 

on a delayed schedule. Another factor affecting the low execution rate of the budget was that the number of 

Volunteers on board was lower than the projected numbers.

53%

73% 74% 74% 72% 76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008

Baseline

FY2009

Baseline

FY 2010

Baseline

FY 2011 FY 2012 FY 2013

5.1.2.c Results
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Strengthening Future Performance: Given that 

Congressional actions are outside the control of the 

agency, leadership will work more closely with regions, 

posts, and domestic offices in FY 2014 to monitor the 

timely execution of funds.

Data Source: Office of the Chief Financial Officer

Indicator 5.2.1.b: Percentage of posts and headquarters offices whose Integrated Planning and Budgeting 

System (IPBS) strategic goals support the agency’s strategic plan goals

FY 2013 

Target

FY 2013 

Result

Target 

Met

98% 98% ü

Rationale: When the activities and goals of posts and headquarters offices are aligned with the agency’s 

strategic goals, the agency is supporting efforts that advance its mission. 

Discussion of Result: The target was met. In 

conjunction with the annual budget process, each post 

and headquarters office submits a multi-year strategic 

plan through the Integrated Planning and Budgeting 

System (IPBS). Posts and headquarters offices are given 

the opportunity to identify how their organizational goals 

relate to the agency’s strategic goals. In FY 2013, 19 of 21 

headquarters offices and all eligible posts submitted IPBS 

strategic plans that specified support for the agency’s 

strategic goals.

The IPBS process was improved in FY 2013 by the rollout of the standardized electronic IPBS strategic plan template to all posts. As a result of the standardized 

electronic template, the agency now has detailed information on the goals, objectives, and indicators of all 

offices and posts in a format that will allow for more detailed analysis. 

The agency also reduced the span of time covered by IPBS strategic plans from three years to two years. This 

change better aligns IPBS strategic plans with the agency’s budget processes. 

Strengthening Future Performance: The agency will work to incorporate the IPBS strategic planning process 

with the other components of Peace Corps’ performance management and budgeting processes, including 

budget formulation, operating plan development, annual performance planning, and quarterly and annual 

performance reporting. By more closely linking its performance and budgeting processes, the agency will 

ensure that policy, program, and budget decisions are rooted in the agency’s strategic vision and priorities and 

informed by high-quality data and evidence.

Data Source: Office of Strategic Information, Research, and Planning

0% 0% 0%

88%

96% 98%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013

5.2.1.b Results
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Performance Goal 5.2.2: Ensure the effective management of Peace Corps resources

Indicator 5.2.2.a: Conduct a Country Portfolio Review process to assess and formulate financial and 

Volunteer resource allocations at all posts

FY 2013 

Target

FY 2013 

Result

Target 

Met

Complete 

annually Completed ü

Rationale: Financial and Volunteer resources allocated to posts represent a significant portion of the agency’s 

budget. By conducting a standardized, annual review of the Peace Corps’ major investments, the agency is 

demonstrating its effective management of resources.

Discussion of Result: The target was met. The Country Portfolio Review process includes three major 

components: data collection, analysis, and the development of observations and recommendations. Each of 

these components was completed as part of the Country Portfolio Review process in FY 2013. 

The Peace Corps uses data developed by third-party international institutions in conjunction with internal data 

collected by the agency. The Country Portfolio Review contains high-quality objective and subjective input, 

including survey data that directly incorporates the perspectives of Volunteers and staff in the field.

The Country Portfolio Review informs the agency’s Volunteer and financial allocation decisions. More specific 

details on these decisions are provided in the Evaluation and Research: Evidence for Decision Making section.

Strengthening Future Performance: The agency is enhancing the way Country Portfolio Review data is 

presented to senior leadership in order to better inform Volunteer allocation decisions. 

Data Source: Office of the Director

Indicator 5.2.2.b: Percentage of posts and headquarters offices that adhere to agency-wide staffing 

policies and procedures

FY 2013 

Target

FY 2013 

Result

Target 

Met

90% 82% û

Rationale: Agency-wide staffing policies and procedures are consistent with federal government standards 

and compatible with local labor requirements. The effectiveness of the agency’s workforce is increased when 

employees are aware of these policies and procedures and are engaged in a meaningful performance appraisal 

process. 

Discussion of Result: The target was not met. In 

FY 2013, 17 out of 21 headquarters offices (81 percent) 

fully implemented all three of the staffing policies and 

procedures that are measured. Additionally, 50 out of 

the 61 posts measured by this indicator (82 percent) fully 

complied with the requirement.

The agency provides regular status updates to 

headquarters offices regarding their mid-year reviews 

and end-year performance appraisals to encourage timely 
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submissions. New employee orientations take place during the first three days of work for all new employees 

and include sessions on the Peace Corps’ personnel practices.

The agency made significant improvement this year as a result of a major push to encourage headquarters 

offices to complete mid-year performance reviews and year-end performance appraisals for all U.S. direct hire 

employees by the end of the year. The agency also raised the profile of employee performance management by 

hiring an employee and labor relations manager—a position that has been vacant for two years—to oversee the 

performance appraisal and management process. Additionally, the agency piloted a new performance appraisal 

program to better connect employees’ individual goals with the goals in the agency’s strategic plan.

Overseas posts also focused on implementing staffing policies and procedures to both comply with agency 

directives and to improve employee productivity and satisfaction. The Armenia post, for example, creates 

individual development plans for all personnel and reviews them twice each year. The post budgets for 

individual development costs for each staff member and encourages staff exchanges to share best practices and 

build skills. Staff in Peru take part in a candid self-assessment process during the performance appraisal process 

to help employees reach the next level of their personal development.

Challenges related to this indicator include allocating time to complete human resources tasks, training 

supervisors to properly execute the performance appraisal system, and providing opportunities for staff 

development. 

Strengthening Future Performance: The agency will implement the new performance appraisal system 

based on information gathered during the pilot phase. The agency will increase its focus on employee 

training by hiring a training manager to oversee the training program for U.S. direct hire staff. The agency 

will also institute a coaching and mentoring program for supervisors to build skills in employee performance 

management. Finally, the agency will launch a host country staff viewpoint survey to capture the perspectives 

and opinions of local staff—some of whom have served the agency for decades. This new survey will provide 

information critical to the agency’s work to identify areas for improvement.

Data Source: Overseas post and headquarters office data call

Indicator 5.2.2.c: Percentage of posts and headquarters offices that benefit from collaboration with global 

strategic partners

FY 2013 

Target

FY 2013 

Result

Target 

Met

83% 84% ü

Rationale: The agency collaborates with external global 

strategic partners to increase the reach and impact of 

Volunteers in the field in support of common goals and 

national initiatives. An increase in the percentage of 

posts and headquarters offices that benefit from strategic 

partnerships indicates the agency is leveraging these 

partnerships more effectively.

Discussion of Result: The target was met. The agency 

collaborated with the following global strategic partners 

in FY 2013: 
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• Food and Agriculture Organization

• Global Communities (formerly CHF International)

• Grassroot Soccer

• International Alliance for Youth Sports

• Johns Hopkins University School of Public Health

• Korean International Cooperation Agency

• Malaria No More

• Millennium Challenge Corporation

• Mondelez International

• Population Services International

• Save the Children

• Special Olympics

• United Nations Volunteers

• U.S. Centers for Disease Control and Prevention

• U.S. Agency for International Development—Global Education Framework

• U.S. Agency for International Development—Global Food Security (Feed the Future)

• U.S. Agency for International Development—Small Project Assistance

• U.S. Environmental Protection Agency

• U.S. President’s Emergency Plan for AIDS Relief

• U.S. Department of State—Energy and Climate Partnership of the Americas

• VSO (Volunteer Service Organization) International

• Water and Development Alliance

• World Cocoa Foundation

• World Food Programme

As a result of a review of existing global strategic partnerships and opportunities for new partnerships, the 

agency signed memoranda of understanding with two new global strategic partners in FY 2013: the Johns 

Hopkins University School of Public Health and the Korean International Cooperation Agency. The agency 

signed memoranda of understanding with two new strategic partners at the end of FY 2012 not reported for this 

indicator last year: Mondelez International and the Water and Development Alliance.

Global strategic partners provide the agency with key technical support, resources for fielding Volunteers, 

assistance with strategic project development, and financial/in-kind support. For example, Togo was able to 
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hold two monitoring, reporting, and evaluation workshops with the support of partners. The Nicaragua post 

noted, “The small grant funding that we receive from a variety of sources serves as a kick start to much of our 

work. We have accomplished a lot [through these small grants].” 

Common challenges reported with regard to increasing the benefits of working with global strategic partners 

include significant reporting requirements and high administrative costs associated with managing these 

partnerships locally. 

Strengthening Future Performance: The agency will continue reviews of its global strategic partnerships to 

ensure that only those relationships where the benefit to the Peace Corps outweighs the cost are maintained. 

Additionally, the agency will pursue partnerships in sectors, regions, and headquarters offices where a 

mutually beneficial opportunity for collaboration exists. The agency will also work to reduce the reporting and 

administrative burden of managing partnerships. 

Data Source: Overseas post and headquarters office data call

Performance Goal 5.2.3: Ensure the optimal performance of critical Peace Corps processes

Indicator 5.2.3.a: Identify at the beginning of the fiscal year and complete by the end of the fiscal year 

improvements to one mission-critical work process

FY 2013 

Target

FY 2013 

Result

Target 

Met

Complete 

annually Completed ü

Rationale: Identifying and completing improvements to at least one mission-critical work process each year 

provides the agency with the opportunity to direct its focus toward a specific area of performance improvement, 

contributing to more efficient and effective operations. 

Discussion of Result: The target was met. This indicator requires the identification of one mission-critical 

work process for improvement at the strategic plan performance review session for the first quarter of the fiscal 

year (typically held in January/February). The improvements are also required to be completed by the end of 

the fiscal year.

Formally announced at the quarter one strategic plan performance review session in FY 2013, the chief 

operating officer selected the development of an executive dashboard of key Volunteer Delivery System metrics 

as the mission-critical work process to improve by the end of the fiscal year.

The dashboard increases the ability of senior leaders and managers to have up-to-date access to information 

regarding the processes related to requesting, recruiting, selecting, and fielding Peace Corps Volunteers. The 

dashboard tracks key performance indicators once a month to allow agency leadership to monitor performance 

and adjust operations when necessary. 

Strengthening Future Performance: The Volunteer Delivery System dashboard will be reviewed regularly to 

ensure the metrics are useful and actionable.

Data Source: Office of the Director
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Evaluation and Research: Evidence for Decision Making

The demand for data and evidence to inform decision making has never been higher at the Peace Corps. 

Bolstered by the sustained commitment of agency leadership to improving operations, the agency’s expanding 

culture of performance improvement is nurtured through high-quality data and evidence developed both in the 

field and at headquarters.

Peace Corps’ Evaluation Framework

In FY 2013, the agency finalized an overarching evaluation framework to provide the agency, for the first time in 

its history, with a systematic framework for conducting evaluation and research activities across the agency to 

better demonstrate the impact of the Volunteers and generate data and evidence for performance improvement 

efforts. Consistent with this new framework, the agency took a series of steps in FY 2013 that have expanded 

the Peace Corps’ capacity to monitor, evaluate, and report on progress toward agency goals, to ensure processes 

are operating efficiently, and to identify or develop evidence to inform resource allocation decisions: 

• Establishment of an agency-wide evaluation agenda: The agency is in the process of developing the 

evaluation agenda for FY 2014. Topics may include a review of the implementation of the Focus In/Train Up 

strategy, performance evaluations on agency performance goals where insufficient progress has been made, 

and a review of the Volunteer application process. Implementing the agency-wide evaluation agenda will 

require coordination across offices and posts—a key step in integrating the evaluation and research activities 

that already occur throughout the agency.

• New regional Monitoring, Reporting, and Evaluation conferences for key staff: Monitoring, reporting, 

and evaluation conferences were held in all three regions to build the skills of programming and training staff 

and prepare data collection tools for Volunteers. Through these conferences, the agency strengthened the 

monitoring, reporting, and evaluation culture at overseas posts and made significant progress in developing 

the tools that Volunteers need to fully report on their activities.

• Improved monitoring and evaluation (M&E) training and tools for Volunteers: All posts provided 

standard M&E training to Volunteers in FY 2013. The training sessions include topics on how to use data 

collection tools, how to analyze data, and how the agency reports progress toward goals. Additionally, a 

redesigned Volunteer Reporting Tool, which will include a significantly improved user interface, is scheduled 

for completion and roll-out in early FY 2014. As the agency continues to build the capacity of Volunteers to 

report on their project activities and provides them with the necessary data collection tools, the volume and 

quality of data related to Volunteers’ impact will increase.

• Increased staff capacity for evaluation and research: At Peace Corps headquarters and in the field, 

the agency is increasing staff capacity to engage in evaluation and research activities. The Director’s office 

has restructured the office responsible for strategic planning, evaluation, and data management to focus 

additional attention on developing new data and evidence for decision making; the office has also hired new 

evaluation and survey specialists. In addition, two full-time M&E specialists (one based at Peace Corps 

headquarters, one field-based) have been hired to work specifically with overseas posts on M&E. 

• Focus on baseline data collection in the new strategic plan: The agency has included a performance goal 

related to baseline data collection in the draft Strategic Plan (FY 2014-2018) currently under development. 

The performance goal will set a target for the percentage of projects where baseline data has been collected 

or compiled. Conducting baseline surveys or compiling baseline data from partner organizations, when 

combined with measurements related to Volunteer project activities, will allow the agency to demonstrate 
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with confidence the impact of Volunteers on specific projects. In addition, the agency is preparing to 

develop models for the collection of baseline data for new country entries and as components of evaluation 

frameworks created for pilot activities and other new initiatives.

Through these improvements, the agency is positioning itself for a major push over the next few years to 

improve the development and use of new and existing evidence to better demonstrate the impact of Volunteers 

and improve Peace Corps programs. 

Major Evaluation and Research Activities in FY 2013

Evaluation and research activities are conducted at overseas posts and in a variety of headquarters offices. 

Agency studies completed and approved for public distribution can be found at www.peacecorps.gov/open. 

In FY 2013, the agency conducted the following major evaluation and research activities:

• Annual Volunteer Survey

• Country Portfolio Review 

• Standardized reports on the Host Country Impact Studies

• Counterpart Survey Pilot

• Evaluations by headquarters offices and overseas posts 

The Peace Corps Office of Inspector General also conducted a variety of audits and evaluations.

While the specific purposes of the agency’s evaluation and research work varied, the findings from the 

studies were used to assess progress toward the agency’s goals and identify actions to further improve agency 

performance. The results informed decisions at all levels in the agency, and, in some cases, served to identify 

promising practices.

Annual Volunteer Survey

The Annual Volunteer Survey (AVS) is the agency’s primary vehicle for ensuring that the voice of the Volunteer 

is heard by agency leadership. The rich information provided through the AVS informs management decisions 

at all levels—from overseas posts to headquarters. As a result of a heightened focus on using proven best 

practices from the online survey industry, the FY 2013 AVS recorded the highest response rate in the history of 

the survey, with 92 percent of Volunteers participating. This high overall response rate, and the fact that more 

than 97 percent of respondents completed 90 percent or more of the survey, signifies that the data is more 

highly representative of the total Volunteer population than ever before. 

The AVS asks Volunteers to assess the impact of their work, the effectiveness of their Peace Corps’ training, 

in-country staff support, their personal health and safety, and, their overall satisfaction with their Volunteer 

service. In FY 2013, the AVS included an abridged set of safety and security questions in preparation for the 

launch of a dedicated crime victimization survey to be conducted in early FY 2014. 

Findings

The results of the FY 2013 AVS provided the agency with critical insights into Volunteers’ views and their in-
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country experiences. Results indicated a slight increase in satisfaction with the support provided by the Peace 

Corps for living and working in communities, as well as the percentage feeling safe at home and work. Some key 

results follow: 

• Volunteers reported they effectively transferred knowledge and skills to help build the capacities of the host 

country individuals with whom they worked (88 percent). (Strategic Goal One)

• Two out of three Volunteers reported that their work and activities promote a better understanding of 

Americans among host country nationals with whom they live and work. (Strategic Goal Two)

• All (100 percent) Volunteers reported that they share their overseas experiences in the Peace Corps with 

Americans back home. (Strategic Goal Three) 

• The percentage of Volunteers who report adequate or better satisfaction with site selection and preparation 

rose one point to 73 percent. (Strategic Goal One)

• The percentage of Volunteers who report adequate or better satisfaction with health services remains high, 

compared to other indicators of satisfaction, despite falling two points from 92 to 90 percent. (Strategic Goal 

Five)

Actions Taken

Findings from the FY 2013 AVS are only available at the end of the fiscal year, and actions based upon the results 

generally would take place in FY 2014. An exception this year, however, was the decision to conduct an analysis 

of high- and low-performing posts with regard to Volunteers’ satisfaction with medical services. This analysis 

was completed in the four weeks between the availability of survey data and the end of the fiscal year in order to 

examine possible reasons for a two percentage point drop in what is traditionally a very high-scoring indicator as 

quickly as possible. 

Actions taken in FY 2013 as a result of FY 2012 AVS data include a continued focus on improving emotional 

support through post staff training and visits to lower-performing sites by the Office of Health Services; the 

inclusion of a performance goal in the draft Strategic Plan (FY 2014-2018) to improve the quality and timeliness 

of feedback provided by project managers to Volunteers on their work, and the creation of a color-coded summary 

categorization of posts’ strengths and weaknesses from the Volunteers’ perspective by the Office of Global 

Operations to inform investments in quality improvement.

Country Portfolio Review

The Peace Corps completed its third annual Country Portfolio Review in the first quarter of FY 2013. The Country 

Portfolio Review addresses a key recommendation of the Comprehensive Agency Assessment, a major evaluation 

of agency operations completed in FY 2010. The assessment challenged the agency to “target the Peace Corps’ 

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 Country Portfolio Review represents one of the initial stages of the annual planning and budgeting cycle and 

is used to inform decisions on potential new country entries, possible country phase-outs, as well as the allocation 

of Volunteers and resources. 

The Country Portfolio Review includes data from internal and external sources in areas such as country need, 

safety and security, medical infrastructure, host country commitment and engagement, post operations, program 

impact, cost, and congruence with U.S. development priorities (Strategic Goals One, Two, and Five). Findings 
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were thoroughly reviewed and discussed by senior management at a retreat held in the first quarter of FY 2013. 

Findings

Through the Country Portfolio Review completed in FY 2013, the agency found that it is meeting the needs 

of host countries with its unique approach to development. While indicating host countries’ relative levels of 

development and candidacy for eventual graduation (closure of program), the review also identified country 

programs that had achieved the greatest improvements in safety and security and Volunteer support through 

the application of specific procedural enhancements, such as standard site visit protocols. 

The review also provided evidence of the performance improvements that innovative and long-term 

investments can achieve in countries with heightened complexity (Indonesia) or projects undergoing 

significant change (several countries in Africa). 

Actions Taken

The Country Portfolio Review in FY 2013 further supported the agency’s earlier decision to increase the 

Volunteer population in Africa and to graduate (close) programs in Antigua/ Barbuda, Bulgaria, Cape Verde, 

Romania, St. Kitts/Nevis, Suriname, and Turkmenistan. It was also instrumental in deciding how to allocate 

resources for the placement of 300 Volunteers. 

Host Country Impact Studies

In FY 2008, the agency initiated a series of Host Country Impact Studies. These country- and project-specific 

impact evaluations are designed to measure how effectively Volunteers’ activities are meeting the technical 

needs of host countries and promoting a better understanding of Americans (Strategic Goals One and Two). 

The agency has completed 24 Host Country Impact Studies since FY 2008, interviewing approximately 3,000 

beneficiaries, counterparts, and host families across all three regions in which the Peace Corps operates. 

Findings

The last Host Country Impact Studies were conducted in FY 2012, and the results obtained by the local 

researchers were reported to the posts immediately upon completion of the field work. While there are no 

new findings to report for FY 2013, the agency did finalize the analysis and publish six country reports based 

on the work of the local researchers on the agency’s website; Fiji, Ghana, Nicaragua, Paraguay, Thailand 

(which included two separate reports evaluating two different programs) and Togo. These reports include a 

thorough review of the quantitative data—supported by a careful analysis of the qualitative data—presented in 

a format that is standard for all the country reports. As such, it includes additional findings, conclusions, and 

recommendations from those contained in the reports produced by the local researchers. 

In addition to these in-depth standard reports, short summary reports were also published for each study.

Actions Taken

The Host Country Impact Studies have been the agency’s primary mechanism for demonstrating the longerterm impact of Volunteers. These studies are unique in that they assess the impact of the Volunteers from 

the perspective of host country nationals—the counterparts, beneficiaries and host families with whom the 

Volunteers work and live. The studies provide both qualitative and quantitative feedback on the agency’s impact 

on Strategic Goals One and Two. 
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Counterpart Survey Pilot

Recognizing the value of the information provided by the Host Country Impact Studies, the agency initiated 

a pilot for surveying local counterparts on a larger scale in FY 2013. The Counterpart Survey pilot included 

questions similar to those utilized in Host Country Impact Studies to gather feedback on the impact of 

Volunteers on local development outcomes and building a better understanding of Americans. The pilot was 

conducted to determine how to best collect information on Volunteer impact directly and more regularly from 

counterparts compared to contracting local researchers to complete only a limited number of studies each year. 

The Counterpart Survey pilot included surveying counterparts in 14 countries spread across the three regions 

and six sectors in which the Peace Corps operates. Interviews were conducted utilizing multiple methods—such 

as in-person interviews, online surveys, and phone conversations—thereby testing the pros and cons of each 

method. The headquarters offices and posts participating in the pilot discussed the parameters of the pilot, 

challenges, and promising practices throughout the process. 

Feedback from the pilot will be critical to developing a survey that can be fielded globally across more than 60 

countries. After analysis of the pilot is complete, the Peace Corps will launch a global counterpart survey in 

FY 2014. 

Evaluation and research activities conducted by overseas posts

Posts conduct evaluations to improve their country programs and increase the impact of Volunteers (Strategic 

Goals One, Two, and Three). In FY 2013, 42 percent of posts reported completing at least one evaluation or 

research activity. Most activities were process evaluations and surveys of satisfaction among various categories 

of stakeholders, including the satisfaction of minority Volunteers in Azerbaijan, program partners in Mexico, 

and host country national staff in Uganda. 

Findings 

The evaluations conducted by posts in FY 2013 focused on the successes and challenges of meeting project 

objectives. While using a variety of methodologies—including on-line surveys, focus groups, and desk research 

of secondary sources—most evaluations relied on host country national sources to better understand their 

country’s development needs, what works or does not work in existing project frameworks, and/or partner 

satisfaction with Peace Corps programming. Posts that conducted evaluations continued to cite high 

satisfaction from local partners with the work of the Volunteers. 

While significant gains have been made in FY 2013 through regional M&E trainings and the addition of a 

limited number of M&E staff, posts continue to be limited in the types of evaluation and research activities they 

can conduct due to a paucity of M&E resources at overseas posts. 

Actions Taken

Posts used information gathered from these evaluations to modify their programs and operations to better meet 

the Peace Corps’ goals. For example, in Peru, post staff studied human development indicators for each region 

of the country using recent census data. They cross-referenced these findings with historical information on the 

Peace Corps’ safety, security and project success at sites throughout the country. The results helped staff target 

activities to areas that held greater potential for positive impact, and assigned 85 percent of all new Volunteers to 

six contiguous northern regions of the country. In Sierra Leone, the post conducted an evaluation of Peace Corps 

Response programs in country through in-depth interviews and a focus group of partners working in institutions 

currently being served by the program. The review of best practices, constraints and opportunities led to the 
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realignment of Peace Corps Response programming in the country, and this will now become a routine part of the 

Project Advisory Committee process. 

Evaluation and research activities conducted by headquarters offices

Peace Corps Headquarters offices conducted essential program evaluations in support of Strategic Goals One, 

Two, and Three, as well as cost-benefit evaluations and operational assessments related to Strategic Goals Four 

and Five.

Examples of evaluation activities completed by headquarters offices follow.

Findings and Actions Taken

• In-depth analysis of Communications operations: In FY 2013, the Office of Communications underwent 

a 360-degree review of its strategy and activities, including an in-depth strength, weaknesses, opportunities, 

and threats analysis. The review identified the prioritization of audiences and messaging as the biggest 

challenges. As a result, the agency has significantly redesigned the office and created a dedicated Digital 

Team, folding all video, photo and social media operations under the direction of a single Digital Director for 

maximum efficiency and impact.

• Annual Peace Corps Response Survey: Peace Corps Response conducts a Close-of-Service survey that is 

completed by each Peace Corps Response Volunteer and distributes global and post-level data to all posts 

participating in the program. Peace Corps Response uses the findings to continually monitor and evaluate 

the program’s expansion and inform improvements to discrete processes, such as the design of interview 

questions for applicants, support tools for posts, pre-departure language tools, and pilot orientation 

guidelines. 

• Design of a Monitoring and Evaluation System for the Sexual Assault Response Program: In keeping 

with recent legislation, the Office of Safety and Security designed an M&E system specifically for the Sexual 

Assault Response Liaison program, identifying best practices for conducting a crime victimization survey, 

moderating focus groups among Safety and Security Coordinators to evaluate and inform improvements in 

the global core training of Volunteers, and policy training for safety and security staff. Findings and resulting 

activities have been shared with the Sexual Assault Advisory Council.

• Evaluation of the Small Project Assistance Program: The Office of Strategic Partnerships collaborated 

with the U.S. Agency for International Development to support discrete projects in local communities as 

part of Jordan’s Youth in Development and Education sector programs. Although there was clear evidence of 

skills transfer to beneficiaries, stakeholders called for greater involvement by communities in project design 

and implementation, a recommendation which has been incorporated into future Small Project Assistance 

programming.

Audits and Evaluations conducted by the Office of the Inspector General

The Peace Corps Office of Inspector General (OIG) regularly conducts audits and evaluations of the 

effectiveness of programs that support Volunteers. The objectives of OIG audits and evaluations vary by 

project, but most aim to recommend improvements that will increase the effectiveness and efficiency of 

Peace Corps operations and strengthen the agency’s ability to implement country programs that increase 

host country capacity. OIG audits and evaluations are submitted to agency management, which then takes 

appropriate action to address the concerns that have been identified. Open recommendations are managed by 
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the agency’s chief compliance officer, who is responsible for assuring that management actions are documented 

and advising OIG when the implementation has been confirmed. OIG audits and evaluations can be found at 

www.peacecorps.gov/oig.

In FY 2013, the OIG issued seven audit reports and four evaluation reports on country programs. The audits 

were conducted in Jamaica, South Africa, Malawi, and Zambia, in addition to a review of the Peace Corps’ 

management of grants to Volunteer projects, the agency’s 50th anniversary program, and medical inventory 

issues. Program evaluations were conducted in Colombia, Malawi, Namibia, and Moldova. The program 

evaluation reports addressed issues such as the extent to which the post developed and implemented programs 

that met agency goals and provided sufficient training, health care, support, and oversight to Volunteers to 

enable them to increase host country capacity and promote cross-cultural understanding. 

The lower number of audit and evaluation reports compared to prior years is a result of the OIG’s focus in 

FY 2013 on the implementation of the requirements of the Kate Puzey Peace Corps Volunteer Protection Act. 

A final report on this topic will be issued in the first quarter of FY 2014. 

Program Evaluations Conducted by the Office of Inspector General

Colombia

The OIG found that the Peace Corps has successfully managed the reopening of this post since 2010, after 

nearly two decades of closure for security reasons, with adequate security and programmatic infrastructure in 

place to support an effective Volunteer Corps. The most significant challenges identified were the safety and 

security and community integration issues related to the concentration of Volunteers in the major urban areas 

along the Caribbean coast.

Major Recommendations

• Assess security conditions along Colombia’s Caribbean coast and identify new sites outside of major urban 

areas where Volunteers can safely live and work 

• Develop a strategy to mitigate and help Volunteers better manage stressors connected to their service

• Assess the viability of the community integration approach to Volunteer safety for urban sites 

• Identify a host family policy that results in Volunteers having more successful host family relationships 

• Assess the sufficiency of current office space and secure additional office space, if needed

• Review and complete the medical evacuation plan 

• Set expectations regarding the timeliness of staff feedback to Volunteers on their work reports and ensure 

that staff uses the Volunteer Reporting Tool to support Volunteers and communicate project results

• Adjust training to ensure Volunteers clearly understand their role as Volunteers

Actions Taken or Planned

In response to the program evaluation, the agency has developed a comprehensive strategy to help Volunteers 

mitigate Colombia-specific stressors, implemented reforms to the host family policy, reviewed options for 

additional office space, reviewed and completed the medical evaluation plan, adopted changes to improve 

feedback to Volunteers, and improved Volunteer training focused on resiliency and adaptation. 
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Malawi

The OIG found that, after the turnover of all U.S. direct hire staff at the post in 2011, the incoming management 

team encountered significant funding shortfalls caused by issues with the post’s financial management 

processes and headquarters oversight. The evaluation revealed additional management issues, including 

unclear and duplicate roles and responsibilities and difficulties collecting and reporting performance 

data. While the OIG determined that the Peace Corps program addresses some of Malawi’s most pressing 

development needs, Ministry officials were poorly informed about Volunteers’ project goals and activities. At 

the same time, Volunteers were very satisfied with staff support in the areas of safety and security, medical, 

and administrative support. In other areas, the post struggled to provide adequate support and oversight to 

Volunteers.

Major Recommendations

• Ensure that the post’s operating plan funds essential operations with appropriated funds rather than host 

country contributions

• Ensure project frameworks are aligned with Volunteer Reporting Forms, train Volunteers to collect and 

record performance data, and require programming staff to provide timely and substantive feedback to 

Volunteers

• Align grant-related training with the Peace Corps approach to development

• Establish project advisory committees

• Establish, implement, and document adherence to procedures for developing, selecting, and approving sites, 

including Peace Corps Response sites

• Survey Volunteers to assess the effectiveness of staff communications and make adjustments if necessary

• Monitor the effectiveness of technical training and make appropriate improvements

Actions Taken or Planned

In response to the program evaluation, the agency has ensured that essential operations are not dependent on 

host country contributions, aligned Volunteer Reporting Forms with the project frameworks, implemented 

standardized training on monitoring and evaluation to improve the collection of performance data, set 

clear expectations with staff on providing timely and substantive feedback to Volunteers, and reviewed 

communication methods with Volunteers. 

Namibia

The OIG found that the post is building a strong programming foundation through the Focus-In/ Train Up 

strategy and continues to work on aligning its projects according to the goals of this agencywide initiative. 

Although the post’s relationships with host country stakeholders appeared generally positive, the post did 

not provide them with a comprehensive annual report or have project advisory committees. Additionally, key 

staff members were not sufficiently involved in the Volunteer site development process and the availability of 

medical and health resources were not fully assessed for Volunteer sites. In general, the evaluation revealed 

that post had developed a solid Volunteer support structure. However, issues were identified related to 

Volunteer safety and emergency preparedness. 

Major Recommendations
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• Ensure that site identification and selection is collaborative and consistent across projects through the 

participation of all relevant staff

• Improve the accessibility of site history files

• Develop project advisory committees for each project

• Assess technical training and make adjustments when necessary to improve the effectiveness of training for 

the education and health sectors

• Examine the local language training and testing program

• Ensure that medical staff conduct site visits

• Improve the completion of site locator forms

• Review emergency action planning and identify any deficiencies 

• Develop a comprehensive annual report for stakeholders that addresses all projects

Actions Taken or Planned

In response to the program evaluation, the agency has continued to include key staff in the site identification 

and selection process, improved site history files, conducted meetings with project advisory committees, 

improved the technical training program, expanded language learning opportunities for Volunteers, 

implemented measures to improve the site locator form, developed and disseminated a comprehensive annual 

report for stakeholders, and completed a comprehensive update of the emergency action plan.

Moldova

The OIG found that Moldova is a strong performing post with qualified and dedicated staff that has been 

well-managed despite undergoing a complete turnover of all U.S. direct hire staff in 2012. The post has a 

strong programming foundation and has applied the Focus In/Train Up strategy to all of its projects. The 

post’s comprehensive site selection process has placed Volunteers in meaningful assignments with strong 

counterparts and good host families. However, Volunteers placed in urban sites faced challenges in integrating 

into their communities. The training program is effective at helping trainees prepare for service, and the 

post has developed a solid Volunteer support structure. However, the evaluation indicated issues related to 

Volunteer safety and emergency preparedness.

Major Recommendations

• Ensure safety and security incidents are properly documented in site history files in a centralized location

• Establish specific criteria for placing Volunteers in urban sites

• Define how language proficiency interview results are to be used for swearing-in decisions and define a 

course of action for trainees who fail to meet minimum language proficiency requirements

• Develop and implement a comprehensive trainee assessment tool

• Ensure all Volunteers are familiar with consolidation points

• Establish a system to ensure that housing deficiencies are corrected before the Volunteer arrives at site
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Actions Taken or Planned

In response to the program evaluation, the agency has updated the process for collecting and documenting site 

history information, implemented a process for review and approval of all Volunteer sites, updated the housing 

policy, piloted a trainee assessment tool, conducted an emergency action plan consolidation test, and modified 

the housing checklist.
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FINANCIAL SECTION
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Message from the Chief Financial Officer

The Peace Corps is firmly committed to sustaining the highest standard for financial accountability and reporting. 

Kearney & Company, P.C. independent auditors, conducted their first financial statement audit of this agency 

during FY 2013 and issued an unmodified (clean) audit opinion. The agency has received unqualified audit opinions 

for the past seven consecutive years from other independent audit firms.

Our success in accountability reporting was further recognized by a sixth awarding of the coveted Association of 

Government Accountants’ Certificate of Excellence in Accountability Reporting for the FY 2012 Performance and 

Accountability Report. Behind this effort is the immense amount of financial work performed not only by my own 

dedicated financial management staff but also other devoted financial and performance management professionals 

throughout the agency in 65 countries, supporting the work of the Volunteers around the world. During FY 2013, 

we processed more than 660 thousand financial transactions in 76 currencies.

Peace Corps appropriation of funding was negatively affected by the sequestration budget cuts, as with all federal 

agencies, and came in at slightly more than $356 million for FY 2013, compared to $375 million in FY 2012. The 

agency remains committed to supporting its Volunteers through their 27 months of service; however, uncertainties 

in future funding levels can make this challenging.

Agency managers worked through Senior Assessment Team meetings and the corrective action plan to correct the 

two significant deficiencies in internal control identified in the FY 2012 financial statement audit. Those significant 

deficiencies were Property, Plant, and Equipment (PP&E) and Information System Security both of which were 

prior year audit findings. FY 2013 financial statement audit work also revealed a significant deficiency in accrual 

validation. We will continue to focus our efforts to fully resolve both of the repeat significant deficiencies as well as 

the new significant deficiency.

Our independent auditor identified several accounting concerns with regards to the accounting treatment of 

proceeds of sale funds as well as the calcuation and classification of Personal Service Contractor and Foreign 

Service National severance liability funds. This material weakness resulted in a restatement of Peace Corps’ 

FY 2012 financial statements. We have corrected the accounting treatments and classifications and have taken 

signifiant steps to improve the calculation methodology of these funds. We will continue to work to establish a more 

sophisticated tool for assessing an accurate severance liability.

Though an agency-wide inventory of Property, Plant, and Equipment was conducted during FY 2013, unresolved 

asset reconciliation issues remain. Other corrective actions performed include updating and issuing Manual Section 

511 on Personal Property Management and Manual Section 711, Accounting for Property, Plant, and Equipment, 

which will further strengthen PP&E internal controls going forward. Funding was approved for a new, commercial 

Property Accountability System which will be implemented in phases during FY 2014 and FY 2015. Progress made 

this year in addressing Information System Security includes implementing back up tape encryption and improving 

data center access management. Posts were provided IT contingency planning templates and corrective actions 

are ongoing to implement the United States Government Configuration Baseline on workstations worldwide. 

Additionally, our planning and strategy efforts have laid the foundation for future IT improvements.

Financial management improvements implemented during FY 2013 include the following:

	Upgraded the Oracle financial system with new sub-ledger accounting architecture, capping a two-year 

complex effort by the in-house financial systems team

	Implemented financial system functionality to process new taxation requirements and began issuing 

payments in U.S. dollars to overseas personal services contractors, treating contractors as U.S. Direct 

Hire personnel consistent with passage of the Kate Puzey Peace Corps Volunteer Protection Act of 2011
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	Integrated the President’s Emergency Plan for AIDS Relief (PEPFAR) funding into Hyperion 

Planning, the agency’s budget formulation and financial analysis software, and generated the PEPFAR 

Implementation Plan for submission to Department of State

	Recovered $10.2 million through open obligation reviews by closing or adjusting obligations in current 

and expired funds

The administration’s directed FY 2013 savings in agency operations related to conferences are 

being captured and conferences over $100 thousand are externally reported on the agency’s website,

http://www.peacecorps.gov/FY2012_PC_Conferences_Spending_Report.pdf. Conference requests are 

subjected to varying levels of approval depending on the estimated cost of each conference. The Inspector 

General is notified of each conference over $20 thousand and the Deputy Director or the Chief of Staff approves 

conferences with estimated total costs that exceed $80 thousand. Conferences estimated to cost over $500 

thousand require approval from the Director. In January 2013, the last reporting period, no conferences exceeded 

this threshold and the agency does not expect that any single conference will exceed this threshold in the next 

reporting period.

Looking forward, an upgrade to the Hyperion Planning budget formulation and financial analysis software 

application is scheduled for completion during the second quarter of FY 2014. The system upgrade is necessary 

to ensure this core application continues to function as the agency upgrades IT infrastructure components.

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 and, in lieu of adopting goal costing, is enhancing the use of 

performance and cost information in budgetary decision making. 

The audited financial statements and notes that follow are reliable and complete and were prepared in accordance 

with generally accepted accounting principles for federal government entities.

We continue to promote effective internal controls, to seek new improvements in financial management, and will 

further focus future efforts to resolve audit recommendations. 

Joseph L. Hepp, Jr.

Chief Financial Officer

December 13, 2013
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The accompanying notes are an integral part of these statements

2013 2012

Restated

Assets

Intragovernmental

Fund Balance With Treasury (Notes 2 and 3) $ 188,687 $ 180,689

Accounts Receivable (Note 4) 2,958 2,324

Total Intragovernmental 191,645 183,013

Accounts Receivable, Net (Note 4) 208 221

General Property, Plant, and Equipment, Net (Note 5) 29,987 35,176

Other

Prepaid Volunteer Living Allowances (Note 6) 2,010 2,220

Other Assets (Note 7) 3,440 3,369

Subtotal Other 5,450 5,589

Total Assets $ 227,290 $ 223,999

Liabilities

Intragovernmental 

Accounts Payable $ 1,074 $ 1,544

Other

Unfunded FECA Liability (Note 8) 32,297 30,558

Other Liabilities (Note 9) 224 429

Subtotal Other 32,521 30,987

Total Intragovernmental 33,595 32,531

Accounts Payable 35,530 33,892

Federal Employee and Veterans Benefits (Note 8) 153,397 139,531

Other

Other Employment Related Liability (Note 8) 98 63

Non-Entity Funds (Note 2) 23,400 27,742

Accrued Funded Payroll and Leave 2,394 5,762

Unfunded Annual Leave (Note 8) 9,755 9,415

Other Liabilities (Notes 9 and 11) 935 820

Subtotal Other 36,582 43,802

Total Liabilities 259,104 249,756

Commitments and Contingencies (Note 11)

Net Position

Unexpended Appropriations 129,818 114,526

Cumulative Results of Operations (161,632) (140,283)

Total Net Position $ (31,814) $ (25,757)

Total Liabilities and Net Position $ 227,290 $ 223,999

Peace Corps

Balance Sheets

As of September 30, 2013 and 2012

(In Thousands)
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The accompanying notes are an integral part of these statements

2013 2012

Restated

Program Costs:

Gross Costs $ 381,873 $ 401,556

Less: Earned Revenue (Notes 12 and 13) 10,031 6,969

Net Cost of Operations $ 371,842 $ 394,587

Peace Corps

Statements of Net Cost

For Years Ended September 30, 2013 and 2012

(In Thousands)
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The accompanying notes are an integral part of these statements

2013

2012

Restated

Cumulative Results of Operations:

Beginning Balances $ (140,283) $ (128,353)

Adjustments:

 Corrections of Errors - 1,509

Beginning Balances, As Adjusted (140,283) (126,844)

Budgetary Financing Sources:

Appropriations Used 339,336 366,589

Donations and Forfeitures of Cash and Cash Equivalents 387 41

Transfers-In/Out Without Reimbursement 5,280 7,757

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property - (81)

Transfers-In/Out Without Reimbursement (154) 990

Imputed Financing (Note 20) 5,644 5,852

Total Financing Sources 350,493 381,148

Net Cost of Operations 371,842 394,587

Net Change (21,349) (13,439)

Cumulative Results of Operations (161,632) (140,283)

Unexpended Appropriations:

Beginning Balance 114,526 97,955

Adjustments:

 Corrections of Errors - 8,882

Beginning Balances, As Adjusted 114,526 106,837

Budgetary Financing Sources:

Appropriations Received 375,000 375,000

Other Adjustments (20,372) (722)

Appropriations Used (339,336) (366,589)

Total Budgetary Financing Sources 15,292 7,689

Total Unexpended Appropriations 129,818 114,526

Net Position $ (31,814) $ (25,757)

Peace Corps

Statements of Changes in Net Position

For Years Ended September 30, 2013 and 2012

(In Thousands)
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The accompanying notes are an integral part of these statements

2013 2012

Restated

Budgetary Resources:

Unobligated Balance, Brought Forward, Oct 1 $ 71,109 $ 51,089

Adjustment to Unobligated Balance Brought Forward, October 1 - 1,981

 Unobligated Balance Brought Forward, October 1, as Adjusted 71,109 53,070

Recoveries of Prior Year Unpaid Obligations 10,237 9,590

Other Changes in Unobligated Balance (1,391) (709)

Unobligated Balance from Prior Year Budget Authority, Net 79,955 61,951

Appropriations (Discretionary and Mandatory) 360,578 382,363

Spending Authority from Offsetting Collections (Discretionary and Mandatory) 7,268 18,485

Total Budgetary Resources $ 447,801 $ 462,799

Status of Budgetary Resources:

Obligations Incurred (Note 14) $ 375,783 $ 391,690

Unobligated Balance, End of Year:

 Apportioned 60,180 58,968

 Exempt from Apportionment 4,488 4,705

 Unapportioned 7,350 7,436

Total Unobligated Balance, End of Year 72,018 71,109

Total Budgetary Resources $ 447,801 $ 462,799

Change in Obligated Balance

Unpaid Obligations:

Unpaid Obligations, Brought Forward, Oct 1 $ 92,209 $ 71,165

Adjustments to unpaid obligations, start of year - 23,131

Obligations Incurred 375,783 391,690

Outlays (Gross) (360,475) (384,187)

Recoveries of Prior Year Unpaid Obligations (10,237) (9,590)

Unpaid Obligations, End of Year (Gross) 97,280 92,209

Uncollected Customer Payments: 

Uncollected Pymts, Fed Sources, brought forward, Oct 1 (10,371) (1,233)

Change in Uncollected Pymts, Fed Sources 6,360 (9,138)

Uncollected Pymts, Fed Sources, End of Year (4,011) (10,371)

Memorandum (non-add) entries:

Obligated Balance, Start of year $ 81,838 $ 93,063

Obligated Balance, End of year $ 93,269 $ 81,838

Budget Authority and Outlays, Net:

Budget Authority, Gross (Discretionary and Mandatory) $ 367,846 $ 400,848

Actual Offsetting Collections (Discretionary and Mandatory) (12,912) (8,953)

Change in Uncollected Customer Payments from Federal Sources 

(Discretionary and Mandatory) 6,360 (9,138)

Budget Authority, Net (Discretionary and Mandatory) $ 361,294 $ 382,757

Outlays, Gross (Discretionary and Mandatory) $ 360,475 $ 384,187

Actual Offsetting Collections (Discretionary and Mandatory) (12,912) (8,953)

Agency Outlays, Net (Discretionary and Mandatory) 347,563 375,234

Distributed Offsetting Receipts (1,770) -

Agency Outlays, Net (Discretionary and Mandatory) $ 345,793 $ 375,234

Peace Corps

Statements of Budgetary Resources

For the Years Ended September 30, 2013 and 2012

(In Thousands)
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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 October, 2013. The statements should be read with the realization that they are for 

a component of the U.S. government, a sovereign entity.

The financial activities of the agency are categorized between entity and non-entity assets and reported and nonreported balances. Entity assets are those assets which the agency has authority to use in it operations, while nonentity assets are assets that are currently held by the Peace Corps but are not available for use by the agency. 

Although both entity and non-entity assets are in the custody and management of the agency, they are reported but 

segregated for presentation purposes.

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 represent intragovernmental and public activities. 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. 

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 

Note 1 Significant Accounting Policies

Statement Federal Objective

Balance Sheet

Statement of 

Net Cost

Statement of 

Changes in 

Net Position

Statement of 

Budgetary 

Resources

Federal Financial Statements

Reflects the agency's financial position as of the statement date. The assets are the amount of current and 

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

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 from its activities.

Explains how the net cost of the agency's operations was funded, and reports other changes in the 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.

Provides information about how the 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.

Notes to Financial Statements
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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.

d) Fund Accounting Structure

The agency’s financial activities are accounted for by the U.S. Treasury Appropriation Fund Symbols. 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 Peace Corps 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 Peace Corps 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. 

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 nonentity 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. The balances in these funds are excluded from the 

financial statements.

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 appropriations.

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.

Peace Corps has discretionary and mandatory spending of its budget authority. The general funds, which are 

funded by multi-year appropriations from Congress are discretionary. The special and trust funds, which were

authorized from permanent laws are considered mandatory spending.

f) Revenues and Other Financing Sources

Peace Corps’ operations are financed through appropriations, proceeds from the sale of property, and inter-agency 

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

Fund Balance with the U. S. Treasury consists of general, special, and trust 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 agency cash in commercial bank accounts. 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, 2013, cashier imprest funds 

represented by cash on hand, checks on hand, interim advances, and cashier checking account balances totaled 
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approximately $910,000 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.

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 Global Financial Services

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 not likely to be collected. 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, is not intended for sale in the ordinary course of business, and is 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. Costs incurred for major building rehabilitations of $25,000 or 

greater are initially recorded as Construction in Progress then after project completion are transferred to Leasehold 

Improvement and amortized over the remaining life of the lease. 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 three to 

nine years). IT hardware is capitalized and amortized over its expected life of three to fifteen years. Vehicles in the 

amount of $10,000 and over are capitalized over its useful life of five years. The agency uses an estimated salvage 

value of 40 percent for vehicles. Land and anything attached to it, such as buildings, located overseas are 

capitalized at their fair market value at the time of transfer, regardless of their acquisition cost. Buildings are 

depreciated with a ten year asset life. 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. 

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 work-related 

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 
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Corps reimburses DOL as funds are appropriated for this purpose, generally resulting in a two-year lag in 

payment. This is the liability for the actual claims paid by DOL to be reimbursed by the Peace Corps.

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 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 compensation 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. The estimate of the current 

and future costs of the severance and retirement liability is determined quarterly.

VIII.Valuation of Foreign Service National Liability—The Peace Corps is generally liable for separation or retirement 

payments to foreign service nationals who are employed by the agency in countries that require payments under 

local labor laws. The estimate of the current and future costs of the severance and retirement liability is 

determined quarterly.

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.
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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. 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 FY 2013 were immaterial.

s) Allocation Transfer

The Peace Corps is a party to allocation transfers with the DOS 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 (DOS) 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 U.S.C. 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 U.S. Treasury. Any funds not used are returned to the host country.

Non-entity assets are composed of deposit fund 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 nongovernmental. 

Deposit Fund—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. 

Clearing Accounts—The proceeds of sales funds represent cash received from the sale of assets, primarily vehicles, 

and are available once transferred to Peace Corps appropriated funds to be reinvested in a like-kind replacement 

purchase (e.g., proceeds from vehicle sales used to purchase replacement vehicles).

Note 2 Non-Entity Assets

Non-Entity Assets 

Deposit Funds

Volunteer Readjustment Allowance 22,891 26,723

Clearing Accounts 509 1,019

Total Non-Entity Assets 23,400 27,742

Total Entity Assets 203,890 196,257

Total Assets $ 227,290 $ 223,999

September 30, 2013

(In Thousands)

September 30, 2012

(In Thousands)
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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.

Non-Budgetary Fund Balance with Treasury – This represents non-entity assets of the agency.

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.

Based upon the agency’s policy, it was determined that the establishment of an Allowance for Doubtful Accounts 

was not necessary as of September 30, 2013 and September 30, 2012.

Fund Balances

Appropriated Funds $ 136,297 $ 124,951

Special Funds 24,157 22,600

Trust Funds 4,833 5,396

Non-Entity Assets (Note 2) 23,400 27,742

Total $ 188,687 $ 180,689

Status of Fund Balance with Treasury

Unobligated Balance

Available $ 64,668 $ 63,673

Unavailable 7,350 7,436

Obligated Balance Not Yet Disbursed 93,269 81,838

Non-Budgetary Fund Balance with Treasury 23,400 27,742

Total $ 188,687 $ 180,689

 (In Thousands)

September 30, 2013

 (In Thousands)

 (In Thousands) 

September 30, 2012

September 30, 2012

 (In Thousands)

September 30, 2013

Note 3 Fund Balance with Treasury

Note 4 Accounts Receivable, Net

Accounts Receivable as of 

September 30, 2013

(In Thousands)

Intragovernmental $ 2,958 $ - $ 2,958 

Other 208 - 208 

Total $ 3,166 $ - $ 3,166 

Accounts Receivable as of 

September 30, 2012

(In Thousands)

Intragovernmental $ 2,324 $ - $ 2,324 

Other 221 - 221 

Total $ 2,545 $ - $ 2,545 

Accounts

Receivable,

Gross

Accounts

Receivable,

Net

Allowance for

Doubtful 

Accounts

Accounts

Receivable,

Gross

Allowance for

Doubtful 

Accounts

Accounts

Receivable,

Net
100 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

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As of September 30, 2013, 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 seven 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. There are no restrictions on the use or convertibility of General Property, Plant,

and Equipment owned by the Peace Corps. Improvements for a building owned in Swaziland totaling $390,000 were

capitalized in FY 2013.

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 pre-positioned 

so that Volunteers will not incur a financial burden for their living costs.

Components of Fixed Assets as of 

September 30, 2013

(In Thousands)

Useful

Life

in Years

Land $ 43 $ - $ 43 

Buildings 10 463 49 414 

Construction in Progress - - - 

General Property, Plant, and Equipment 5–10 4,640 1,494 3,146 

Vehicles 5 21,180 8,240 12,940 

IT Hardware 3–15 16,304 12,460 3,844 

Leasehold Improvements 2–10 6,162 1,895 4,267 

Internal-Use Software in Development 1,684 - 1,684 

Internal-Use Software 3–9 35,576 31,927 3,649 

Total $ 86,052 $ 56,065 $ 29,987 

Components of Fixed Assets as of 

September 30, 2012

(In Thousands)

Useful

Life

in Years

Land $ 43 $ - $ 43 

Buildings 10 73 14 59 

Construction in Progress 651 - 651 

General Property, Plant, and Equipment 5–10 4,454 1,058 3,396 

Vehicles 5 24,830 8,584 16,246 

IT Hardware 3–15 14,438 10,266 4,172 

Leasehold Improvements 10 6,306 715 5,591 

Internal-Use Software in Development 1,382 - 1,382 

Internal-Use Software 3–9 33,838 30,202 3,636 

Total $ 86,015 $ 50,839 $ 35,176 

Cost Net Book Value

Note 5 General Property, Plant, and Equipment, Net

Cost Net Book Value Accumulated 

Depreciation

Accumulated 

Depreciation

Prepaid Volunteer Living Allowances $ 2,010 $ 2,220

Note 6 Prepaid Volunteer Living Allowances

September 30, 2013

 (In Thousands)

September 30, 2012

 (In Thousands)
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013 101

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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.

Prepaid Rent – Prepaid Rent includes the advance payment for some of the residential and commercial office spaces 

in support overseas operations. 

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 as of September 30, 2013. 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 approximately 150 Foreign Service Nationals and

1,900 Foreign National PSCs working for the Peace Corps at the end of the fourth quarter. 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.

Liabilities Covered by Budgetary Resources – Liabilities covered by budgetary resources include accounts payable 

for goods and service received by the agency, other liabilities as shown in Note 9 and the liability for the separation 

and retirement payments for eligible PSCs and FSNs. 

Travel Advances to Employees $ 451 $ 442

Relocation Advances to Employees 27 2

Prepaid Rent 2,870 2,855

Other Advances 92 70

Total Other Assets $ 3,440 $ 3,369

Note 7 Other Assets

September 30, 2013

 (In Thousands)

September 30, 2012

 (In Thousands)

Intragovernmental Liabilities

Unfunded FECA Liability $ 32,297 $ 30,558

Liabilities

Unfunded Annual Leave 9,755 9,415

Unfunded Employment-Related Liability 98 63

Federal Employee and Veterans Benefits 153,397 139,531

Total Liabilities Not Covered by Budgetary Resources $ 195,547 $ 179,567

Total Liabilities Covered by Budgetary Resources $ 63,557 $ 70,189

Total Liabilities $ 259,104 $ 249,756

Note 8 Liabilities Not Covered by Budgetary Resources

 (In Thousands) (In Thousands)

September 30, 2013 September 30, 2012
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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.) All advances are considered current liabilities. 

For overseas operations, Peace Corps rents residences, office space and training facilities. Leases overseas contain a 

termination clause, allowing the agency to terminate any lease with a 30-90 day notice. Peace Corps leases are all 

operating leases and are considered cancellable. 

The agency enters into Occupancy Agreements (OA) with the General Services Administration (GSA) for its building 

in Washington, DC and its seven regional recruiting offices throughout the continental U.S. GSA leases commercial 

facilities and provides spaces in federal buildings for occupancy by the agency. OAs range from five to ten year 

terms, however, leased spaces can be vacated within a 120-day notice to GSA. Future operating lease payments for 

domestic leases are depicted below:

In the opinion of the management and legal counsel, the agency is liable for contingent liabilities related to 

administrative proceedings, legal actions, or claims associated with employee grievances that are probable and 

measurable in the amount of $935,000 as of September 30, 2013 and $820,000 as of September 30, 2012. These 

contingencies are considered current liabilities.

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 related to employee grievances are

estimated to be $150,000 as of September 30, 2013 and $450,000 as of September 30, 2012.

Intragovernmental 

Advances from Others $ 224 $ 429

Other Liabilities

Contingent Liability (Note 11) 935 820

Total Other Liabilities $ 1,159 $ 1,249

Note 9 Other Liabilities

 (In Thousands)

September 30, 2013 September 30, 2012

 (In Thousands)

Note 10 Leases

Fiscal Year 2014 $ 6,784

Fiscal Year 2015 6,633

Fiscal Year 2016 6,591

Fiscal Year 2017 6,196

Fiscal Year 2018 4,028

After Fiscal Year 2018 1,140

Total Future Lease Payments $ 31,372

Fiscal Year Future Lease Payments

 (In Thousands)

Note 11 Commitments and Contingencies

Intragovernmental Costs $ 63,521 $ 56,493

Intragovernmental Earned Revenue 9,636 6,762

Total Intragovernmental $ 53,885 $ 49,731

Public Costs $ 318,352 $ 345,063

Public Earned Revenue 395 207

Total Public $ 317,957 $ 344,856

Total Net Cost $ 371,842 $ 394,587

Note 12 Intragovernmental Costs and Exchange Revenue

September 30, 2013 September 30, 2012

 (In Thousands) (In Thousands)
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Intragovernmental activity represents the costs of goods and services provided to other federal agencies. Costs of 

goods and services and any revenue earned from outside federal sources are classified as public costs.

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.

All obligations incurred are Category A or Exempt from Apportionment.

The undelivered orders are budgetary obligations with and without advances/prepayments placed against federal 

budget authority where no goods or services have been received.

The differences between the FY 2012 SBR and the FY 2012 actual numbers presented in the FY 2014 Budget of the 

United States Government are summarized in the table above. The President’s Budget with actual numbers for FY 

2013 has not yet been published, and is expected to be published in FY2014, and to be made available at 

http://www.whitehouse.gov/omb. The difference between the agency’s SBR and the Budget of the U.S. Government 

is attributable to the restatement of the FY 2012 financial statements as explained in Note 18, the activities associated 

with the miscellaneous contribution received by Peace Corps on behalf of Volunteers, and non-reported balance for 

expired appropriations in the President’s Budget.

Intragovernmental Earned Revenues $ 9,636 $ 6,762

Earned Revenues from the Public 395 207

Total Exchange Revenues $ 10,031 $ 6,969

Note 13 Exchange Revenue

September 30, 2013 September 30, 2012

 (In Thousands) (In Thousands)

Note 14 Apportionment Categories of Obligations Incurred: Direct vs. Reimbursable

Category A $ 359,785 $ 10,401 $ 378,687 $ 7,480

Exempt from Apportionment 5,597 - 5,523 -

Total Obligations Incurred $ 365,382 $ 10,401 $ 384,210 $ 7,480

 Direct Reimbursable Direct

September 30, 2013

(In Thousands)

September 30, 2012

(In Thousands) 

Reimbursable

Undelivered Orders – End of Period $ 63,753 $ 56,628

Note 15 Undelivered Orders at End of the Period

September 30, 2013 September 30, 2012

 (In Thousands) (In Thousands)

(In Millions)

Statement of Budgetary Resources $ 463 $ 392 $ 375

Budget of the U.S. Government $ 486 $ 394 $ 368

Difference $ (23) $ (2) $ 7

Budgetary 

Resources 

Obligations 

Incurred Net Outlays

Note 16 Explanation of Differences between the SBR and the Budget of the U.S. Government
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Host Country Contributions are provided to Peace Corps by the host government and are accepted under the authority 

of Section 22 U.S.C. 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 U.S. 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 $4.2

million in fair market value were received at posts through the end of September 30, 2013, for services, supplies, 

equipment, and facilities. The host country cash balance is $800,000 as of September 30, 2013.

Peace Corps restated its FY 2012 financial statements due to correction of errors in the reporting of the Foreign 

Service National (FSN) Separation Liability Trust Fund and the Agency Contributions, Host Country Resident 

Contractors’ (PSC) Separation Liability Fund. These two distinct funds were established to provide for separation and 

severance pay for to host country residents (host country national and third country national) engaged with the Peace 

Corps. Separation pay represents the long-term liabilities that have accrued over years of service according to the 

local labor laws and the terms of the contracts for the PSC or the Local Compensation Plan for the FSNs. Prior to 

this year, the agency was classifying these funds as non-entity assets, based upon the agency’s interpretation of 

Statement of Federal Financial Accounting Standards (SFFAS) No. 1, Accounting for Selected Assets and Liabilities.

As non-entity, the balances related to the FSN and PSC Separation Liability Funds were excluded in the agency’s 

Statement of Net Costs, Statement of Changes in Net Position, and the Statement of Budgetary Resources. Therefore,

any accrued liability and payments of severance were not being reported accordingly. Classification of the PSC and 

FSN Liability Funds as non-entity materially misstated the financial statements in prior years. 

Annually, Peace Corps calculates the estimated liability of the severance earned by the FSNs and PSCs based upon 

their years of service with the agency. The estimated liability is funded using government contributions from the 

operating or general fund account. The estimated liability for a specific year is normally funded, via contribution,

based on the levels determined by the agency. The remaining amount of the liability that is yet to be funded is 

recognized as an unfunded employment liability. During the FY 2013 audit, the agency also identified an 

overstatement in the recognized unfunded employment liability at the beginning of FY 2012.

The overall impact of the restatement as it relates to the FSN Separation Liability Trust Fund and the PSC Separation

Liability Funds to FY 2012 was a net increase to the agency’s Net Position of $9.2 million with an offsetting decrease

in overall Total Liabilities of the agency. The agency’s Gross Costs increased by $8.8 million and Total Budgetary 

Resources increase by $9.7 million.

A second restatement to correct errors involves the funds received by the agency from proceeds of sales. Purchases of 

assets used with proceeds of sales are not considered a use of an appropriation. Therefore, when the replacement 

occurs, the recordation of the appropriations used is only recorded to the extent that appropriated dollars were used 

for the purchase. The agency did not record the appropriate accounting transactions for assets purchased with 

Note 17 Fiduciary Activities

Schedule of Fiduciary Activity

(In Thousands)

Fiduciary Net Assets, Beginning $ 804 $ 769 $ - $ -

 Contributions 787 1,021 4,274 4,743

 Disbursements (704) (986) (4,274) (4,743)

Increase/(Decrease) in Fiduciary Net Assets 83 35 - -

Fiduciary Net Assets, Ending $ 887 $ 804 $ - $ -

Schedule of Fiduciary Net Assets

(In Thousands)

Fiduciary Net Assets

Cash and Cash Equivalents $ 887 $ 804 $ - $ -

Total Fiduciary Net Assets $ 887 $ 804 $ - $ -

HCC

Cash

2013 

HCC

Cash

2012 

HCC

In-Kind

2013 

HCC

In-Kind

2012 

HCC

Cash

2013 

HCC

Cash

2012 

HCC

In-Kind

2013 

HCC

In-Kind

2012 

Note 18 Restatements
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proceeds in accordance with U.S. Treasury’s Financial Management Services’ United States Standard General Ledger 

and but recorded the purchase as if the funds were appropriated. From FY 2007 to FY 2011, the agency purchased 

property using proceeds amounting to $8.8 million and another $2.1 million in FY 2012. The restatement for the 

proceeds of sales increased Unexpended Appropriations by $10.9 million and decreased Cumulative Results of 

Operations.

The following schedules show the original FY 2012 and the restated FY 2012 with the corresponding adjustments

related to the correction of errors for the FSN Separation Liability Trust Fund and the PSC Separation Liability Fund, 

presented as Restatement Adjustment #1, and the correction of errors related to the proceeds of sales, presented as 

Restatement Adjustment #2. As of FY 2013, the agency has corrected all errors and implemented the proper 

accounting treatment for any future transactions related to the two restatements. 
106 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2013

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Assets

Intragovernmental

Fund Balance With Treasury $ 180,689 $ - $ - $ 180,689

Accounts Receivable 2,324 - - 2,324

Total Intragovernmental 183,013 - - 183,013

Accounts Receivable, Net 221 - - 221

General Property, Plant, and Equipment, Net 35,176 - - 35,176

Other

Prepaid Volunteer Living Allowances 2,220 - - 2,220

Other Assets 3,369 - - 3,369

Subtotal Other 5,589 - - 5,589

Total Assets $ 223,999 $ - $ - $ 223,999

Liabilities

Intragovernmental 

Accounts Payable $ 1,544 $ - $ - $ 1,544

Other

Unfunded FECA Liability 30,558 - - 30,558

Other Liabilities 429 - - 429

Subtotal Other 30,987 - $ - 30,987

Total Intragovernmental 32,531 - - 32,531

Accounts Payable 10,559 23,333 - 33,892

Federal Employee and Veterans Benefits 139,531 - - 139,531

Other

Other Employment Related Liability 4,660 (4,597) - 63

Non-Entity Funds 55,739 (27,997) - 27,742

Accrued Funded Payroll and Leave 5,762 - - 5,762

Unfunded Annual Leave 9,415 - - 9,415

Other Liabilities 820 - - 820

Subtotal Other 76,396 (32,594) - 43,802

Total Liabilities $ 259,017 $ (9,261) $ - $ 249,756

Commitments and Contingencies

Net Position

Unexpended Appropriations 103,531 - 10,995 114,526

Cumulative Results of Operations (138,549) 9,261 (10,995) (140,283)

Total Net Position $ (35,018) $ 9,261 $ - $ (25,757)

Total Liabilities and Net Position $ 223,999 $ - $ - $ 223,999

Original 2012

Restatement 

Adjustement #1

Resatement 

Adjustment #2

Balance Sheet (In Thousands)

Restated 2012
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Program Costs:

Gross Costs $ 392,669 $ 8,887 $ - $ 401,556

Less: Earned Revenue 6,969 - - 6,969

Net Cost of Operations $ 385,700 $ 8,887 $ - $ 394,587

Original 2012

Restatement 

Adjustement #1

Resatement 

Adjustment #2

Statement of Net Cost (In Thousands)

Restated 2012
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Cumulative Results of Operations:

 Beginning Balances $ (128,353) $ - $ - $ (128,353)

Adjustments:

 Corrections of Errors - 10,391 (8,882) 1,509

Beginning Balances, As Adjusted (128,353) 10,391 (8,882) (126,844)

Budgetary Financing Sources:

Appropriations Used 368,702 - (2,113) 366,589

Donations and Forfeitures of Cash and Cash Equivalents 41 - - 41

Transfers-In/Out Without Reimbursement - 7,757 - 7,757

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property (81) - - (81)

Transfers-In/Out Without Reimbursement 990 - - 990

Imputed Financing 5,852 - - 5,852

Total Financing Sources 375,504 7,757 (2,113) 381,148

Net Cost of Operations 385,700 8,887 - 394,587

Net Change (10,196) (1,130) (2,113) (13,439)

Cumulative Results of Operations (138,549) 9,261 (10,995) (140,283)

Unexpended Appropriations:

 Beginning Balances 97,955 - - 97,955

Adjustments:

 Corrections of Errors - - 8,882 8,882

Beginning Balances, As Adjusted 97,955 8,882 106,837

Budgetary Financing Sources:

Appropriations Received 375,000 - - 375,000

Other Adjustments (722) - - (722)

Appropriations Used (368,702) - 2,113 (366,589)

Total Budgetary Financing Sources 5,576 - 2,113 7,689

Total Unexpended Appropriations 103,531 - 10,995 114,526

Net Position $ (35,018) $ 9,261 $ - $ (25,757)

Statement of Changes in Net Position (In Thousands)

Original 2012

Restatement 

Adjustement #1

Resatement 

Adjustment #2 Restated 2012
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Budgetary Resources:

Unobligated Balance, Brought Forward, Oct 1 $ 51,089 $ - $ - $ 51,089

Adjustment to Unobligated Balance Brought Forward, October 1 1,981 - 1,981

 Unobligated Balance Brought Forward, October 1, as Adjusted 51,089 1,981 - 53,070

Recoveries of Prior Year Unpaid Obligations 9,590 - - 9,590

Other Changes in Unobligated Balance (709) - - (709)

Unobligated Balance from Prior Year Budget Authority, Net 59,970 1,981 - 61,951

Appropriations (Discretionary and Mandatory) 375,000 7,363 - 382,363

Spending Authority from Offsetting Collections (Discretionary and Mandatory) 18,091 394 - 18,485

Total Budgetary Resources $ 453,061 $ 9,738 $ - $ 462,799

Status of Budgetary Resources:

Obligations Incurred $ 386,590 $ 5,100 $ - $ 391,690

Unobligated Balance, End of Year:

 Apportioned 58,968 - - 58,968

 Exempt from Apportionment 41 4,664 - 4,705

 Unapportioned 7,462 (26) - 7,436

Total Unobligated Balance, End of Year 66,471 4,638 - 71,109

Total Budgetary Resources $ 453,061 $ 9,738 $ - $ 462,799

Change in Obligated Balance

Unpaid Obligations:

Unpaid Obligations, Brought Forward, Oct 1 $ 71,165 $ - $ - $ 71,165

Adjustments to unpaid obligations, start of year 23,131 - 23,131

Obligations Incurred 386,590 5,100 - 391,690

Outlays (Gross) (379,287) (4,900) - (384,187)

Recoveries of Prior Year Unpaid Obligations (9,590) - - (9,590)

Unpaid Obligations, End of Year (Gross) 68,878 23,331 - 92,209

Uncollected Customer Payments: 

Uncollected Pymts, Fed Sources, brought forward, Oct 1 (1,233) - - (1,233)

Change in Uncollected Pymts, Fed Sources (9,138) - - (9,138)

Uncollected Pymts, Fed Sources, End of Year (10,371) - - (10,371)

Memorandum (non-add) entries:

Obligated Balance, Start of year $ 69,932 $ 23,131 $ - $ 93,063

Obligated Balance, End of year $ 58,507 $ 23,331 $ - $ 81,838

Budget Authority and Outlays, Net:

Budget Authority, Gross (Discretionary and Mandatory) $ 393,091 $ 7,757 $ - $ 400,848

Actual Offsetting Collections (Discretionary and Mandatory) (8,953) - - (8,953)

Change in Uncollected Customer Payments from Federal Sources

 (Discretionary and Mandatory) (9,138) - - (9,138)

Budget Authority, Net (Discretionary and Mandatory) $ 375,000 $ 7,757 $ - $ 382,757

Outlays, Gross (Discretionary and Mandatory) $ 379,287 $ 4,900 $ - $ 384,187

Actual Offsetting Collections (Discretionary and Mandatory) (8,953) - - (8,953)

Agency Outlays, Net (Discretionary and Mandatory) $ 370,334 $ 4,900 $ - $ 375,234

Statement of Budgetary Resources (In Thousands)

Original 2012

Restatement 

Adjustment #1

Restatement 

Adjustement #2 Restated 2012
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As of September 30, 2013 

(In Thousands)

Resources Used to Finance Activities:

Budgetary Resources Obligated:

Obligations Incurred $ 365,382 $ 10,401 $ 375,783

Less: Spending Authority from Offsetting Collections and Recoveries 14,487 3,018 17,505

Obligations Net of Offsetting Collections and Recoveries 350,895 7,383 358,278

Less: Offsetting Receipts 1,770 1,770

Net Obligations $ 352,665 $ 7,383 $ 360,048

Other Resources

Donations and Forfeitures of Property $ - $ - $ -

Transfers in/out without reimbursement (+/-) (154) (154)

Imputed financing from costs absorbed by others 5,644 5,644

Net resources used to finance activities $ 5,490 $ - $ 5,490

Total resources used to finance activities $ 358,155 $ 7,383 $ 365,538

Resources Used to Finance Items Not Part of the Net Cost of Operations:

Change in budgetary resources obligated for goods, services and benefits 

ordered but not yet provided (+/-) $ (6,844) $ (7,382) $ (14,226)

Resources that fund expenses recognized in prior periods 13,866 13,866

Budgetary offsetting collections and receipts that do not affect net cost of 

operations 5,280 5,280

Resources that finance the acquisition of assets (4,424) (4,424)

Other resources or adjustments to net obligated resources that do not affect net 

cost of operations (+/-) 154 154

Total resources used to finance items not part of the net cost of operations $ 8,032 $ (7,382) $ 650

Total resources used to finance the net cost of operations $ 366,187 $ 1 $ 366,188

Components Requiring or Generating Resources in Future Periods:

Future Funded Expenses (4,143) (4,143)

Employer Contribution to Employee Benefits 1,773 1,773

Components not Requiring or Generating Resources: -

Depreciation and amortization 7,813 5 7,818

Other (+/-) 206 206

Total Components of Net Cost of Operations that will not require or generate 

resources 5,649 5 5,654

Net Cost of Operations $ 371,836 $ 6 $ 371,842

Note 19 Reconciliation of Net Cost of Operations to Budget 

 Direct Reimbursable Total
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As of September 30, 2012 

(In Thousands)

Resources Used to Finance Activities:

Budgetary Resources Obligated:

Obligations Incurred $ 384,210 $ 7,480 $ 391,690

Less: Spending Authority from Offsetting Collections and Recoveries 13,213 14,862 28,075

Obligations Net of Offsetting Collections and Recoveries 370,997 (7,382) 363,615

Less: Offsetting Receipts 2,154 2,154

Net Obligations $ 373,151 $ (7,382) $ 365,769

Other Resources

Donations and Forfeitures of Property $ (81) $ - $ (81)

Transfers in/out without reimbursement (+/-) 990 990

Imputed financing from costs absorbed by others 5,852 5,852

Net resources used to finance activities $ 6,761 $ - $ 6,761

Total resources used to finance activities $ 379,912 $ (7,382) $ 372,530

Resources Used to Finance Items Not Part of the Net Cost of Operations:

Change in budgetary resources obligated for goods, services and benefits $ 4,419 $ 7,383 $ 11,802

Resources that fund expenses recognized in prior periods 6,410 6,410

Budgetary offsetting collections and receipts that do not affect net cost of 

operations 41 41

Resources that finance the acquisition of assets (3,589) 45 (3,544)

Other resources or adjustments to net obligated resources that do not affect net 

cost of operations (+/-) 115 115

Total resources used to finance items not part of the net cost of operations $ 7,396 $ 7,428 $ 14,824

Total resources used to finance the net cost of operations $ 387,308 $ 46 $ 387,354

Components Requiring or Generating Resources in Future Periods:

Future Funded Expenses (2,715) (2,715)

Employer Contribution to Employee Benefits (234) (234)

Components not Requiring or Generating Resources: -

Depreciation and amortization 10,238 10,238

Other (+/-) (56) (56)

Total Components of Net Cost of Operations that will not require or generate 

resources 7,233 7,233

Net Cost of Operations $ 394,541 $ 46 $ 394,587

 Direct Reimbursable Total

Note 19 Reconciliation of Net Cost of Operations to Budget 
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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 20 Imputed Financing

Federal Employees Health Benefit Program $ 3,926 $ 4,260

Federal Employees Group Life Insurance Program 16 14

Civil Service Retirement System 577 787

Federal Employees Retirement System 1,091 719

Foreign Service Retirement and Disability System 34 72

Total Imputed Costs $ 5,644 $ 5,852

September 30, 2013

 (In Thousands)

September 30, 2012

 (In Thousands)
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Inspector General’s Audit Transmittal Letter 
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Auditor’s Report

1

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

INDEPENDENT AUDITOR’S REPORT

To the Acting Director and Inspector General of the United States Peace Corps

Report on the Financial Statements

We have audited the accompanying financial statements of the Unites States Peace Corps (Peace 

Corps), which comprise the consolidated balance sheet as of September 30, 2013, the related 

consolidated statements of net cost and changes in net position, and the combined statement of 

budgetary resources (hereinafter referred to as the “financial statements”) for the year then 

ended, and the related notes to the financial statements. 

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with accounting principles generally accepted in the United States of America. This 

includes the design, implementation, and maintenance of internal control relevant to the 

preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements based on our audit. We 

conducted our audit in accordance with auditing standards generally accepted in the United 

States of America; standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and Office of Management 

and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements. 

Those standards require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on the auditor’s 

judgment, including the assessment of the risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the entity’s preparation and fair presentation of the financial 

statements in order to design audit procedures that are appropriate in the circumstances, but not 

for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. 

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness 

of accounting policies used and the reasonableness of significant accounting estimates made by 

management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion. 
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2

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of the Peace Corps as of September 30, 2013, and its net cost of operations, 

changes in net position, and budgetary resources for the year then ended, in accordance with 

accounting principles generally accepted in the United States of America. 

Other Matters

As part of our audit of the 2013 financial statements, we also audited the adjustments described 

in Note 18 that were applied to restate the fiscal year (FY) 2012 financial statements. In our 

opinion, such adjustments are appropriate and have been properly applied. We were not engaged 

to audit, review, or apply any procedures to the FY 2012 financial statements of the Peace Corps 

other than with respect to the adjustments. Accordingly, we do not express an opinion or any 

other form of assurance on the FY 2012 financial statements as a whole.

The Peace Corps’ financial statements as of September 30, 2012 were audited by other auditors 

whose report, dated November 8, 2012, expressed an unqualified opinion on those statements. 

Other Reporting Responsibilities 

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the 

Management’s Discussion and Analysis (hereinafter referred to as the “required supplementary 

information”) be presented to supplement the financial statements. Such information, although 

not a part of the financial statements, is required by OMB and the Federal Accounting Standards 

Advisory Board, who consider it to be an essential part of financial reporting for placing the 

financial statements in an appropriate operational, economic, and/or historical context. We have 

applied certain limited procedures to the required supplementary information in accordance with 

auditing standards generally accepted in the United States of America. These procedures 

included inquiries of management about the methods used in preparing the information and 

comparing it for consistency with management’s responses to our inquiries, the financial 

statements, and other knowledge we obtained during our audit. We do not express an opinion or 

provide any assurance on the information because the limited procedures do not provide us with 

sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements taken 

as a whole. The Inspector General’s Statement on the Peace Corps’ Management and 

Performance Challenges, Summary of Financial Statement Audit and Management Assurance 

Tables, the information in the Improper Payments Information Act section, the Message from the 

Director of the Peace Corps, the information in the Performance section, and the Message from 

the Chief Financial Officer are presented for purpose of additional analysis and are not required 
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3

parts of the financial statements. Such information has not been subject to the auditing 

procedures applied in the audit of the financial statements, and accordingly, we do not express an 

opinion or provide any assurance on it.

Independent Auditor’s Report on Internal Control Over Financial Reporting and Compliance 

with Applicable Provisions of Laws, Regulations, Contracts, and Grant Agreements 

In accordance with Government Auditing Standards and OMB Bulletin No. 14-02, we have also 

issued a report, dated December 13, 2013, on our consideration of the Peace Corps’ internal 

control over financial reporting and our tests of the Peace Corps’ compliance with certain 

provisions of laws, regulations, contracts, and grant agreements, for the year ended September 

30, 2013. The purpose of that report is to describe the scope of our testing of internal control 

over financial reporting and compliance and the results of that testing, and not to provide an 

opinion on internal control over financial reporting, or on compliance and other matters. That

report is an integral part of an audit performed in accordance with Government Auditing 

Standards and OMB Bulletin No. 14-02, and in considering the entity’s internal control over 

financial reporting and compliance.

Alexandria, Virginia

December 13, 2013 
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1

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER 

FINANCIAL REPORTING AND COMPLIANCE WITH APPLICABLE PROVISIONS 

OF LAWS, REGULATIONS, CONTRACTS, AND GRANT AGREEMENTS

To the Acting Director and Inspector General of the Peace Corps

We have audited the accompanying financial statements of the United States Peace Corps (Peace 

Corps), which comprise the consolidated balance sheet as of and for the year ended September 

30, 2013, the related consolidated statements of net cost and changes in net position, and the

combined statement of budgetary resources (hereinafter referred to as the “financial statements”) 

for the year then ended, and have issued our report thereon, dated December 13, 2013. We 

conducted our audit in accordance with auditing standards generally accepted in the United 

States of America; standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and Office of Management 

and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements. 

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Peace Corps’ 

internal control over financial reporting (internal control) to determine the audit procedures that 

are appropriate in the circumstances for the purpose of expressing our opinion on the financial 

statements, but not for the purpose of expressing an opinion on the effectiveness of the Peace 

Corps’ internal control. Accordingly, we do not express an opinion on the effectiveness of the 

Peace Corps’ internal control. We limited our internal control testing to those controls necessary 

to achieve the objectives described in OMB Bulletin No. 14-02. We did not test all internal 

controls relevant to operating objectives, as broadly defined by the Federal Managers’ Financial 

Integrity Act of 1982 (FMFIA), such as those controls relevant to ensuring efficient operations. 

Our consideration of internal control was for the limited purpose described in the preceding 

paragraph and was not designed to identify all deficiencies in internal control that might be 

material weaknesses or significant deficiencies; therefore, material weaknesses or significant 

deficiencies may exist that were not identified. However, as described in the accompanying 

Schedule of Findings, we identified certain deficiencies in internal control that we consider to be 

a material weakness and 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 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 consider one of the deficiencies described in the 

accompanying Schedule of Findings to be a material weakness. 
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2

A significant deficiency is a deficiency, or 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 in the accompanying Schedule of 

Findings to be significant deficiencies. 

We noted certain additional matters involving internal control over financial reporting that we 

will report to the Peace Corps’ management in a separate letter. 

Compliance with Applicable Provisions of Laws, Regulations, Contracts, and Grant 

Agreements

As part of obtaining reasonable assurance about whether the Peace Corps’ financial statements 

are free from material misstatement, we performed tests of its compliance with certain provisions 

of laws, regulations, contracts, and grant agreements, noncompliance with which could have a 

direct and material effect on the determination of financial statement amounts. We also tested

certain provisions of other laws and regulations specified in OMB Bulletin No. 14-02. We 

limited our tests of compliance to these provisions and did not test compliance with all laws, 

regulations, contracts, and grant agreements applicable to the Peace Corps. However, providing 

an opinion on compliance with these provisions was not an objective of our audit, and 

accordingly, we do not express such an opinion. The results of our tests disclosed instances of 

noncompliance that are required to be reported under Government Auditing Standards, and are

described in the accompanying Schedule of Findings. 

Peace Corps’ Response to Findings

The Peace Corps’ management has provided its response to our findings in a separate 

memorandum attached to this report. The Peace Corps’ response was not subject to the auditing 

procedures applied in the audit of the financial statements, and accordingly, we do not express an 

opinion on it. 

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and 

compliance and the results of that testing, and not to provide an opinion on the effectiveness of 

the entity’s internal control or on compliance. This report is an integral part of an audit 

performed in accordance with Government Auditing Standards and OMB Bulletin No. 14-02 in 

considering the entity’s internal control and compliance. Accordingly, this communication is not 

suitable for any other purpose. 

Alexandria, Virginia 

December 13, 2013
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3

Schedule of Findings

Material Weakness

I. Financial Management Analysis and Reporting (New Condition)

The Peace Corps’ internal control over financial reporting was not properly designed to prevent 

or detect material misstatements. During fiscal year (FY) 2013, the audit process identified 

errors related to the reporting of fund balances, separation liabilities, proceeds of sales, financial 

reporting and analysis, and budgetary reporting, some of which necessitated a restatement of 

prior year amounts and material adjustments to current year amounts. These material 

adjustments and restatements are discussed below. 

Reporting of Fund Balances

The Peace Corps did not report two Treasury Account Symbols (TAS) in accordance with OMB 

Circular A-11 guidance and the Department of the Treasury’s (Treasury) fund definition. The 

Peace Corps reported the two TASs on the Balance Sheet as non-entity cash and an offsetting 

non-entity liability. The Peace Corps funds both TASs with expenditure transfers from 

appropriated funds, as required by Public Law. 

OMB Circular A-11 requires that the Peace Corps report the two TASs in its basic financial 

statements and accompanying footnotes based on fund classification as trust and special funds. 

Statements of Federal Financial Accounting Concepts (SFFAC) No. 2 provides conclusive 

criteria for the definition of the reporting entity, as those funds are reported under the 

organization in “Federal Programs by Agency and Account,” which is a section of the Analytical 

Perspectives included in the Budget of the United States Government. 

The Peace Corps failed to report these funds, which resulted in material misstatements, including 

an approximately $8.9M understatement of gross costs on the Statement of Net Cost and an 

approximately $9.2M overstatement of cumulative results of operations. On the Statement of 

Budgetary Resources, the Peace Corps understated its budgetary resources and unpaid 

obligations by approximately $9.7M and $23.3M, respectively.

Separation Liabilities

The Peace Corps had not reviewed the methodology used to estimate the separation liabilities for 

Foreign Service Nationals (FSN) and Personal Service Contractors (PSC) since 2007. Kearney 

& Company, P.C.’s (Kearney) audit testing revealed inconsistencies in the calculation of 

separation liabilities. The Peace Corps updated the personnel information, local laws and 

regulations, and compensation plan parameters, upon which the liabilities calculations are based. 

Upon review and update of the estimation methodology, the Peace Corps determined that the FY 

2013 separation liabilities, which were originally estimated at $34.4M, were overstated by 

approximately $9.7M. Additionally, the FY 2012 separation liabilities, totaling $33.6M, were 

overstated by approximately $9.5M. 
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4

Proceeds of Sales

The United States Standard General Ledger (USSGL) states that agencies should record the use 

of appropriated funds when the amounts are appropriated from the General Fund of the Treasury 

via Treasury Appropriation Warrants, or received via allocation transfers from TASs 

appropriated by the General Fund of the Treasury. The Peace Corps incorrectly recorded asset 

purchases utilizing appropriated funds when the funding for the purchase of the asset originated 

from proceeds from asset sales. This resulted in approximately $11M in overstatements to 

unexpended appropriations and cumulative results of operations balances as of FY 2012. 

Financial Reporting and Analysis

The Peace Corps does not have sufficient controls related to the review and approval of its 

financial statements. Further, underlying data analysis did not prevent or detect errors in 

financial reporting. During the course of the FY, the Peace Corps failed to identify the following 

errors:

 An invalid TAS was active within the Peace Corps’ financial management system, 

Odyssey

 A difference of $2.5M between the assets and the sum of the liabilities and net position 

on certified financial statements

 The absence of footnote disclosures required by OMB Circular A-136

 An error on the Statement of Budgetary Resources, Distributed Offsetting Receipts line 

of approximately $600,000

 The root cause(s) of approximately $900,000 in unsupported adjustments recorded by the 

Peace Corps in order to pass Federal Agency Centralized Trial Balance System (FACTS) 

II edit checks.

Budgetary Reporting

The Peace Corps did not estimate collections for the FY on its Standard Form (SF)-132, 

Apportionment and Reapportionment Schedule, in accordance with OMB Circular No. A-11

requirements.

Effects: The Peace Corps cannot ensure complete and accurate financial reporting, including the 

following:

 Inability to prevent or detect material misstatements or operational anomalies

 Inability to comply with applicable laws, regulations, and other guidance, including OMB 

A-11, OMB A-136, and the USSGL

 Improper classification of funds or improper inclusion/exclusion of funds from the 

financial statements may lead to misstatements and inconsistent reporting in the financial 

statements.

* * * * *
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5

Significant Deficiencies

II. Property, Plant, and Equipment (Repeat Condition)

The Peace Corps’ property, plant, and equipment (PP&E) internal control structure contains 

several weaknesses, including review and approval of asset additions, accurate capitalization of 

acquisition costs, reconciliation between asset listings, and timely recognition of property 

disposals and impairment. Despite organizational efforts to improve inventory management, the 

Peace Corps does not account for PP&E in an accurate, consistent, and timely manner. Specific 

PP&E internal control weaknesses include the following: 

 Review of Fixed Asset Entries – The Peace Corps maintains detailed property records 

within the Fixed Assets Module of the Odyssey financial system. The Office of 

Accounting and Financial Reporting (AFR) does not have a formal process to review and 

approve entries in the Fixed Assets Module. Review and approval of entries is necessary 

in order to facilitate the timely identification of errors and inaccuracies, in addition to 

preventing fraudulent entries. During our audit, Kearney noted the following issues:

- The Peace Corps did not properly capitalize 17 new additions, as of June 30, 2013, in 

the Fixed Assets Module within Odyssey in a timely manner. Differences between 

the reporting periods when the asset was placed into service and when it was 

capitalized in Odyssey ranged from two to three reporting periods after the 

acquisition date, with a total cost of approximately $289,000 and a book value of 

approximately $267,000 

- The Peace Corps did not record 15 of 22 new additions, as of September 30, 2013, in 

the Fixed Assets Module within Odyssey in a timely manner. Differences between 

the reporting periods when the asset was placed into service and when it was 

capitalized in Odyssey ranged from four to 15 reporting periods after the acquisition 

date. As of September 30, 2013, the total cost of the additions not recorded timely 

was approximately $796,000 and the net book value was approximately $655,000. 

Further, the total cost of the additions of approximately $318,000 and the book value 

of approximately $218,000 were recorded in FY 2013 but should have been recorded 

in FY 2012 

- The Peace Corps recorded a duplicate asset in the amount for approximately 

$886,000. The duplicate asset was corrected within one accounting period; however,

the correction was not processed using the appropriate general ledger (GL) accounts. 

The final correction was not processed for eight accounting periods 

- The Peace Corps lacked documentation to support the allocation of a $30,000

purchase price between land and buildings

- The Peace Corps could not provide supporting documentation for costs related to 

leasehold improvements, representing a total cost of approximately $402,000 with a 

net book value of approximately $111,000.

 Reconciliation of Property Records – The Peace Corps also maintains a detailed 

vehicle tracking system (Vehicle Management Information System [VMIS]), a “master” 

vehicle tracking spreadsheet, and personal property inventory maintained in BarTracks. 
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Data between the inventory management tracking system and the asset management 

system (i.e., the Fixed Assets Module within Odyssey) is not automatically interfaced, 

which requires the involvement of multiple offices to assess the completeness and 

accuracy of asset management records. 

 Vehicle Cost – The Peace Corps does not have an effective control structure to ensure it 

captures all capitalizable costs related to vehicle acquisition, including clearing agents, 

freight costs, etc., and receives appropriate supporting documentation in order to facilitate 

vehicles’ entry into the Fixed Assets Module. Failure to identify all capitalizable costs 

may result in understated PP&E balances and inaccurate financial reporting.

 Asset Impairment and Obsolescence Procedures – The Peace Corps has no 

standardized procedures regarding the identification and subsequent accounting treatment 

of obsolete and impaired assets. This may lead to inconsistent treatment among Posts, 

and potentially erroneous financial statements. Current year procedures identified 

impaired/obsolete assets in two of five Post visits that were not reflected in the 

accounting records. Further, our procedures identified property in the Fixed Assets 

Module for Posts no longer supporting volunteer activity and closed country programs

where the Peace Corps no longer conducts mission activities. For example:

- One asset (Asset Number C0070) should have been disposed, as it has not been in use 

since late 2010. The book value of the asset was approximately $22,000 as of June 

30, 2013. As of September 30, 2013, the asset had been removed from the Fixed 

Assets Module

- The Peace Corps has seven country programs and a Regional Recruiting Office 

(RRO) that are partially or fully closed; however, the assets have not been removed 

from the Fixed Assets Module, whether through transfer to another Post or the 

Department of State for disposal. This resulted in:

o Approximately 130 information technology (IT) hardware, IT software, 

generators, and disposed vehicle assets assigned to a closed Post and a closed 

RRO remained on the fixed assets listing as of September 30, 2013 with a total 

cost of approximately $288,000 and a book value of $188,000. The relevant Post 

and regional location were closed between FYs 2011 and 2012

o Approximately 592 IT hardware, IT software, generators, and disposed vehicle 

assets assigned to six suspended/closed Posts remained on the fixed assets listing 

as of September 30, 2013 with a total cost of $978,000 and a book value of 

$197,000. The relevant Posts were closed between FYs 2012 and 2013, based on 

congressional notification of Posts’ ceasing operations; however, the Peace Corps 

did not estimate asset impairments and potential losses in the period in which the 

assets were removed from service 

- The Peace Corps did not remove eight assets from the Fixed Assets Module within 

Odyssey in the corresponding accounting period, ranging from two to three months, 

in which the disposal was recorded

- The Peace Corps could not provide disposal forms for five IT hardware asset 

disposals tested.
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Effects: The Peace Corps cannot ensure complete and accurate financial information regarding 

PP&E. The inability to address these control deficiencies provides the following:

 The opportunity for fraud, waste, and abuse

 Loss of asset accountability, which introduces operational risk related to the ability to 

execute the Peace Corps’ mission

 Decreases in the uniformity and standardization of procedures, resulting in inconsistent 

treatment of assets and increasing the difficulty in completing consolidated reports

 Increase in the likelihood of financial reporting misstatements due to improperly 

capitalized costs or delayed recognition of asset impairments, as well as incomplete or 

inaccurate property data used in making management and budgeting decisions

 Decrease in the likelihood of identification of risks and proper mitigation of those risks.

III. Information Technology Security (Repeat Condition)

The Peace Corps’ IT internal control structure, both for the General Support Systems (GSS) and 

critical financial reporting applications, did not include a comprehensive risk analysis, evidence 

of effective monitoring of design and performance, and evidence of an ability to identify and 

respond to changing risk profiles. The Peace Corps’ IT control environment included design and 

operation weaknesses that, when combined, are considered to be a significant deficiency, as 

summarized below:

 The Peace Corps has not implemented an agency-wide continuous monitoring program, 

including no processes effectively implemented to periodically conduct assessments of 

selected security controls or security metrics used for reporting and monitoring the 

security posture of the system to appropriate organization officials

 The Peace Corps did not consistently perform vulnerability scans during the FY ending 

September 30, 2013, and the Peace Corps could not demonstrate consistent application of 

vulnerability scans across all servers and network devices applicable to the Peace Corps’

financial systems. Without proper implementation of policy and defined procedures that 

govern vulnerability scans, there is a higher likelihood that the Peace Corps’ financial 

information systems may be exposed to unknown/undetected security 

weaknesses/vulnerabilities, which increases the risk of successful exploitation

 The Peace Corps did not implement an agency-wide risk management program to 

manage information security risks. Specifically, the Peace Corps did not provide 

guidance on how to assess, respond, and monitor information security risk at the agency 

level. Further, the Peace Corps did not effectively manage its system inventory and 

ensure that the Security Assessment and Authorization process was properly performed 

for its information systems

 The Peace Corps’ Domestic Active Directory User Listing, dated August 13, 2013,

included:

- 374 generic, service, or test accounts have not been disabled

- 13 user accounts were not accessed in over 90 days

- 10 user accounts remained active after the employees associated with the accounts

had separated from the Peace Corps. One of the 10 user accounts accessed Active 
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Directory after the employee associated with the account had separated from the 

Peace Corps.

Effects: IT controls consist of those internal controls that are dependent on information systems 

processing, and include general controls and application controls. General controls and 

application controls are not likely to be effective due to weaknesses in the Peace Corps’ 

information security program. Security program policies and procedures apply to all, or a large 

segment of, the Peace Corps’ information systems. The effectiveness of these procedures is a 

significant factor in determining the effectiveness of controls at the application level. 

Application-level controls are not likely to be effective due to weaknesses in information 

security program controls. Weaknesses in security management can result in increased risk that 

application-level controls are not consistently applied, which could render accounting process 

controls ineffective by circumvention or modification. Specifically, the following could occur:

 The lack of a continuous monitoring strategy prevents the Peace Corps from clearly 

understanding the security state of its information systems over time. Failure to 

implement a comprehensive Information Security Continuous Monitoring (ISCM)

strategy that considers key application-level and GSS controls increases the risk that 

inappropriate or unusual activity could go undetected, possibly allowing fraudulent or 

unauthorized transactions

 Out-of-date security patches/software versions could expose the application to 

vulnerabilities that may be exploited, which may impact the integrity of the Odyssey 

application and financial data. Inconsistently applied vulnerability scanning procedures 

could increase the risk of exposure to undetected/unknown security weaknesses and 

vulnerabilities

 The lack of a formal risk management program that considers the impact of mission and 

business processes could leave the Peace Corps’ management unaware of information 

security risks affecting organizational processes and supporting systems. Without this 

knowledge, management may not identify and prioritize risks to business transaction 

flows as they relate to its financial systems and data

 Inactive and separated user accounts are candidates for internal and external hackers. 

These accounts may also be exploited for use by unauthorized individuals to circumvent 

segregation of duties or least privilege controls. Ultimately, ineffective account 

management practices may lead to unauthorized or illegal access to Peace Corps 

resources. Additionally, the failure to disable unnecessary accounts could result in 

security breaches, corrupted data integrity, or impaired availability of data to support 

financial reporting and operations.

IV. Accounts Payable Accrual (New Condition)

The Peace Corps does not have adequate internal controls in place to ensure that accounts 

payable accruals are reasonably estimated and validated. Agencies need to estimate liabilities for 

goods and services received for which they have not yet received an invoice by the financial 

statement date. Agencies must accumulate sufficient, relevant, and reliable data on which to 
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base accrual estimates, and agency management should ensure that adequate documentation is 

available to support the estimates. Further, agencies should perform a validation to ensure that 

the estimate is reasonable. The Peace Corps did not perform testing or other analyses to validate 

the predictive accuracy of estimation models against actual data. This lack of formal validation 

limits the Peace Corps’ ability to ensure that its current estimation methodology is consistent 

with actual events.

Effect: Failure to validate estimations may result in erroneous financial statements and failure to 

timely identify emerging financial risks.

* * * * *
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Noncompliance and Other Matters

V. OMB Circular Number A-11, Preparation, Submission, and Execution of the Budget

(New Condition)

The recognition and measurement of budgetary information reported in the Statement of 

Budgetary Resources and the SF-132, Apportionment and Reapportionment Schedule, should be 

based on budget terminology, definitions, and guidance in OMB Circular No. A-11, Preparation, 

Submission, and Execution of the Budget. However, as discussed in our report on internal 

control, we found that the Peace Corps does not have effective controls over external financial 

reporting. Specifically, the Peace Corps failed to comply with OMB Circular A-11 for the 

reporting of the Peace Corps reporting entity, the Statement of Budgetary Resources, and the SF132.

VI. Federal Managers’ Financial Integrity Act of 1982 (New Condition)

FMFIA requires the implementation of internal accounting and administrative controls that 

provide reasonable assurance that:

 Obligations and costs are in compliance with applicable laws

 Funds, property, and other assets are safeguarded against waste, loss, unauthorized use, 

or misappropriation

 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 maintain accountability over the assets. 

However, as discussed in our report on internal control, we found that the Peace Corps does not 

have effective controls over financial reporting. 

VII. Federal Information Security Management Act of 2002 (FISMA)

FISMA requires agencies to develop, document, and implement an agency-wide information 

security program 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. 

As noted in its Assurance Statement, the Peace Corps disclosed an instance of noncompliance 

with FISMA that is required to be reported under Government Auditing Standards and OMB 

Bulletin No. 14-02.

By not complying with FISMA, the Peace Corps has potentially weakened security controls, 

which could adversely affect the confidentiality, integrity, and availability of information and 

information systems.

* * * * *
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APPENDIX A: STATUS OF PRIOR YEAR FINDINGS

In the Independent Auditor’s Report on the United States Peace Corps (Peace Corps) fiscal year 

(FY) 2012 financial statements1

, the predecessor auditor noted two deficiencies related to 

internal control over financial reporting. The table below presents a summary of the current year 

status of these issues.

Table 1 – Prior Year Significant Internal Control Deficiencies

Control Deficiency FY 2012 Status FY 2013 Status

Property, Plant, and Equipment Significant Deficiency Significant Deficiency

Information Technology Security Significant Deficiency Significant Deficiency

 1 Independent Auditor’s Report on the Peace Corps 2012 and 2011 Financial Statements
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AGENCY COMMENTS TO THE AUDITOR’S REPORT

Peace Corps has reviewed the Auditor’s Report and concurs with the findings in the report.
OTHER INFORMATION
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Office of Inspector General

TO: Carrie Hessler-Radelet, Acting Peace Corps Director

Daljit Bains, Chief Compliance Officer

FROM: Kathy A. Buller, Inspector General 

SUBJECT: Inspector General’s Statement on the Peace Corps’ Management and 

Performance Challenges 

DATE: November 27, 2013

In accordance with the Reports Consolidation Act of 2000, OIG is submitting what it has 

determined to be the most significant management and performance challenges facing the Peace 

Corps. The challenges discussed in the attachment to this memo are to be included in the 

agency’s PAR for FY 2013. OIG has concluded that the following six areas present significant 

challenges at the Peace Corps.

This year’s challenge areas are:

• IT Security Management (first reported in FY 2009)

• Business Processes and Information Systems (FY 2011)

• Volunteer Safety and Security (reported under Business Processes and Information 

Systems in FY 2011)

• Excessive Personnel Turnover (FY 2012)

• Programming and Volunteer Training (FY 2012)

• Accountability of Medical Supplies (FY 2012)

These challenges illustrate the most significant areas OIG believes need improvement for the 

Peace Corps to effectively manage its resources and minimize the potential for fraud, waste, and 

abuse occurring in its operations. Addressing the issues related to these challenge areas would 

enable the agency to increase operational efficiencies and improve mission effectiveness.

Attachment

The Inspector General’s Statement on 

the Peace Corps’ Management and Performance Challenges
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Peace Corps’ Management and Performance Challenge Areas

Challenge Information Technology Security Management

Why This is a Challenge

An effective information technology (IT) security program helps protect an agency’s data from 

being misused by both internal and external sources and minimizes the potential of having its 

most sensitive data compromised. The federal laws and regulations governing IT security are 

specifically designed to strengthen an agency’s management of its related programs and provides 

for significant enhancements in the capability to prevent serious information security incidents 

from occurring. A cornerstone of IT security in the federal environment is the Federal 

Information Security Management Act (FISMA).

1 Its overall goals include the development of a 

comprehensive framework to protect the government’s information, operations, and assets. Since 

Fiscal Year (FY) 2009, OIG has reported in its management and performance challenges that the 

Peace Corps has not achieved full compliance with FISMA. OIG continues to find that FISMA 

compliance is a management and performance challenge for the Peace Corps.

Progress in Addressing the Challenge

Management has not progressed in strengthening the Peace Corps’ IT security management 

programs through greater FISMA compliance and in some cases has regressed since FY 2012.

Several issue areas associated with FISMA compliance that were discussed in prior year 

challenges statements have not been fully resolved. For example, some processes for 

configuration management have not been completely implemented; various contingency plan 

testing weaknesses still exist at both overseas posts and headquarters; performance of required 

risk assessments is not being consistently accomplished; and systems security planning 

documentation has not been completely updated. Further, the Peace Corps is lacking an effective 

Plan of Action and Milestones process. Absent an effective Plan of Action and Milestones

process it cannot efficiently track and remediate known security weaknesses or cross-reference 

them to the agency’s budget system as required by the Office of Management and Budget 

(OMB). Other identified high risk deficiencies include an ineffective information security risk 

management framework and lack of a program for performing continuous monitoring of agency 

systems.

What Needs To Be Done

Achieving full compliance with FISMA and other federal laws and regulations that apply to 

managing the Peace Corps’ IT security infrastructure is critical to establishing a program that 

ensures the agency’s information, operations, and assets are adequately protected. The Peace 

Corps needs to place greater emphasis on improving FISMA compliance and timely remediation 

of IT security weaknesses that have been identified through internal, OIG FISMA, and other 

reviews. This will require sufficiently prioritizing agency time and resources to eliminate 

weaknesses and improve its IT security program.

 1 Pub. L. No. 107-347. The law was passed by Congress and signed by the President as part of the E-Government 

Act of 2002.
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Key OIG Resources

Peace Corps FY 2012 Performance and Accountability Report

OIG Semiannual Report to Congress, October 1, 2012 to March 31, 2013

Challenge Business Processes and Information Systems

Why This Is a Challenge

Although the Peace Corps continues to streamline operations and improve the technology that 

supports key business and Volunteer support processes, it is constrained by limited resources and 

inadequate planning. A responsive management team that provides quality support services to 

Volunteers will require enhanced business processes and modern information systems. Agency 

business processes must also support effective internal controls and access to reliable data. OIG’s 

work disclosed some common problems related to maintaining effective internal controls. 

According to OMB Circular A-123, “Management is responsible for establishing and 

maintaining internal control to achieve the objectives of effective and efficient operations, 

reliable financial reporting, and compliance with applicable laws and regulations.” It is 

imperative that agency management implements the necessary automated and manual controls 

throughout its processes to ensure the desired results are achieved. 

Property Management 

The Peace Corps reported having property valued at $35.2 million in FY 2012. Accountability 

over Peace Corps property, such as vehicles, furniture, and computer equipment, continues to 

present challenges for management. The agency implemented a new property accountability 

system in FY 2012. However, OIG audits found problems with the implementation, including 

incorrect information loaded into the system from the start. In addition, OIG’s external auditor 

continues to report internal control gaps over property, plant, and equipment. 

Data Management

As the agency automates business processes, proper data management is essential to ensure the 

accessibility, usefulness, and accuracy of data. OIG audits and evaluations have identified 

several essential functions that remain largely paper-based, such as travel, medical supply 

management, payment vouchers, and several human resource functions (for example, leave 

approval, performance appraisals, and travel compensation time). As a result, data is more prone 

to human error and less easily analyzed for management decisions, and data management 

processes are less efficient than an automated workflow. 

In addition, offices should carefully consider what controls are automated and how to gain 

efficiency as they automate more functions. For example, the agency implemented an automated 

system for posts to request Volunteer payments. When the system was implemented, the process 

for making non-recurring payments to Volunteers no longer required the full review of a 

financial management officer (FMO). Although the FMO examined a selection of the payments,

it was not a sufficient number or statistical sample as required by federal regulation. As a result, 

payments totaling $2.8 million were made to Volunteers from FY 2010 to FY 2013 that were not 

properly certified.
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Progress in Addressing the Challenge

This challenge relates to various agency functions that are managed by different offices. Progress 

improving processes or systems is dependent on the managing offices’ priorities and resources. 

Several offices have placed high importance on reviewing their processes, identifying key 

controls, and developing sustainable procedures and system solutions to ensure efficient and 

effective operations. For example, the agency realigned several offices that manage small grants 

into one office, the Office of Strategic Partnerships. In doing so, the agency aligned processes, 

re-evaluated controls, and implemented new procedures to ensure posts and Volunteers received 

clear and consistent guidance on using small grants to further their work. The agency is also

developing a grants management enterprise system to automate workflow and maintain data. 

Another example is the Volunteer Delivery System, which automated and modernized the 

recruitment, placement, and medical clearance processes. As a result, the applicant processing 

time was shortened, paperwork was significantly reduced, and staffing resources were saved by

adding automated controls and reviews. In addition, by automating many of the paper files 

containing personally identifiable information, the agency has reduced the risk of personal and 

medical information being lost or stolen.

In FY 2014 the agency plans to continue streamlining operations and improving the technology 

that supports key business processes, including a customer relationship management database 

that supports several offices and functions and a medical supply management system. 

What Needs To Be Done

The agency must continue to assess its operations and identify ways to streamline and improve 

its business processes. Competing agency priorities requires that senior management must

prioritize initiatives and coordinate efforts. Proper prioritization and coordination will help 

management to allocate the appropriate resources and manage the changes in an efficient and 

effective manner.

Key OIG Resources

OIG FY 2014 Annual Plan

Management Advisory Report: Certification of Volunteer Payments

Recurring Issues: OIG Post Audits and Evaluations FYs 2009-2011

Challenge Volunteer Safety and Security

Why This Is a Challenge

While Peace Corps service is often a fulfilling, life-defining opportunity, there are inherent 

safety risks, including the risk of sexual assault or other serious crime incidents. The agency has 

identified Volunteer safety and security as a primary objective and a responsibility of staff, 

Volunteers, and trainees. In 2011, sexual assault victims, agency officials, and subject matter 

experts testified before Congress, and victims called on the agency to adopt the highest standards 

for response and care. During the past two years the agency has developed policies, response 
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protocols, and Volunteer safety and security training programs mandated by Congress under the 

Kate Puzey Volunteer Protection Act of 2011 (Kate Puzey Act).2

The Kate Puzey Act required that the agency enter into a memorandum of understanding (MOU) 

specifying the duties and obligations of the Peace Corps and the Department of State Bureau of 

Diplomatic Security (DOS/DS) with respect to the protection of Volunteers and staff members, 

including investigations of safety and security incidents and crimes committed against 

Volunteers and staff. The need for formal agreement between the agency and DOS/DS to clarify 

roles and responsibilities when crimes are committed against Volunteers was cited by OIG in its 

2010 Audit of the Volunteer Safety and Security Program and in testimony by the Inspector 

General before Congress as an important element to ensure that a thorough response effort is 

carried out. While the execution of the MOU in 2012 was an important milestone, how the 

agreement is implemented will determine whether it enhances Volunteer safety and security.

Additionally, despite improvements, posts continue to struggle to fully and consistently 

implement agency safety and security policies and procedures. Further, the agency has not 

developed a system to ensure safety and security recommendations are implemented by posts. 

During FY 2014 OIG will perform a follow-up review of OIG’s FY 2010 audit to determine if 

progress has been made. 

Many of the policies and Volunteer training modules mandated by the Kate Puzey Act were 

developed, issued and implemented during FY 2013, along with staff training on roles and 

responsibilities related to Volunteer sexual assault and serious crime. Some significant elements 

of the policy went into effect on September 1, 2013, such as a process for victims to make 

restricted reports and assigning a Sexual Assault Response Liaison at every post. Given the 

considerable changes made to these policies, the decentralized nature of the Volunteer safety and 

security program, and the number of headquarters and overseas personnel with safety and 

security roles, it will be a management challenge to adequately train and oversee staff to ensure 

compliance with agency policies and delivery of required services to victims of crime.

Progress in Addressing the Challenge

In 2011 the agency issued a seven-point Commitment to Sexual Assault Victims statement to 

Volunteers and staff that spelled out a framework for response to sexual assault victims 

predicated on compassion, safety, open communication, and respect for privacy. A victim 

advocate was hired and an office established to work with Volunteers, post and headquarters 

staff to enhance response and care. As noted, the agency made progress by entering into an MOU 

with DOS/DS, defining roles and responsibilities for responding to staff and Volunteer safety 

and security incidents overseas. Additionally, as required by the Kate Puzey Act, Volunteer 

sexual assault risk reduction and response (SARRR) training was developed incorporating best 

practices in the field and consultation with subject matter experts. Initial Volunteer survey results 

indicated that it was effective. The agency has trained some, but not all overseas staff, on the 

sexual assault policies, and intends to train all relevant staff once the comprehensive sexual 

assault policies have been finalized.

 2 Pub. L. No. 112-57.
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The agency developed the Coordinated Agency Response System (CARS) to assist in the 

coordination of appropriate services to Volunteers who are victims of crime. CARS is also 

intended to enhance post and headquarters-level compliance and implementation of sexual 

assault policies and procedures in support of Volunteers who are victims of crime.

The agency has addressed high crime environments in Latin America by making significant 

programmatic and support changes in the field. For example, in 2011 the agency identified posts 

in Latin America at greater risk for serious crime incidents. The agency used that data to initiate 

programming changes in key areas, including transportation, geographic distribution of 

Volunteers and, in some cases, post closures. The agency reported that their actions resulted in a 

30% decrease in serious crimes against Volunteers in the region.

What Needs To Be Done

The majority of the 60 posts OIG visited from 2009-13 struggled to fully implement agency 

safety and security policies and procedures. While the agency continues to improve aspects of its 

safety and security program, it has not yet established some critical processes. One such process 

is a system to ensure safety and security recommendations are implemented by posts, specifically 

with regards to emergency action plans and consolidation points, Volunteer housing, and site 

locator forms. The agency has established instructions to assist in these areas; however,

additional training and monitoring would ensure more consistent implementation at posts. 

Volunteer SARRR training was implemented in 2011 and all Volunteers who received PreService Training (PST) received SARRR training. However, SARRR training is not provided 

consistently to Peace Corps Response Volunteers, who do not receive PST.

3 The agency will 

need to update its written guidelines and provide applicants and Volunteers with the required 

information and training once the comprehensive sexual assault policies have been finalized. The 

agency will need to ensure that all overseas staff have been trained on its sexual assault policies 

and carefully track completion of on-line training.

Additionally, the agency does not use a centralized case management system to verify that sexual 

assault response requirements have been fulfilled, assess performance, and make process 

improvements. In addition to providing training and guidance on implementation of the MOU to 

agency staff, the agency should ensure that country directors engage with U.S. Embassy’s 

regional security officers to review field implementation of the MOU, including support services 

available under the agreement. 

Key OIG Resources

OIG FY 2014 Annual Plan

Final Evaluation Report: Peace Corps Sexual Assault Risk Reduction and Response Training

Final Evaluation Report: Peace Corps Volunteer Sexual Assault Policy

Final Report: Review of the Peace Corps’ Implementation of Guidelines Related to Volunteer 

Victims of Rape and Sexual Assault

Recurring Issues: OIG Post Audits and Evaluations FYs 2009-2011

IG's Congressional Testimony House Committee on Foreign Affairs

IG's Congressional Testimony Senate Foreign Relations Subcommittee

 3 Peace Corps Response provides qualified professionals the opportunity to undertake short-term assignments in 

various programs around the world.
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Final Audit Report: Peace Corps Volunteer Safety and Security Program

Final Program Evaluation Report: Volunteer Safety and Security

Challenge Excessive Personnel Turnover 

Why This Is a Challenge 

In June 2012, OIG issued its final report on the impacts of the “five-year rule” (FYR) on 

operations of the Peace Corps. Peace Corps management concurred with the report’s five 

recommendations. The FYR became law in 1965 and limited employment of Peace Corps’ U.S. 

direct hire personnel to five consecutive years worked over two separate ‘tours’ of 2.5 years 

each. OIG’s evaluation found that the FYR, as intended, enabled the agency to create a constant 

flow of new employees including returned Peace Corps Volunteers; avoid the inflexibility 

associated with the civil service system; and prevent employees from working their entire career 

at Peace Corps. However, the FYR accelerated the annual pace of employee turnover to between 

25 percent and 38 percent, quadruple the average turnover rate in the federal government. The 

average tenure of agency employees over the past 10 years was just under three years. Excessive 

personnel turnover at Peace Corps exacerbated a range of common management challenges. 

Excessive turnover has undermined the agency’s ability to retain employees on the basis of 

performance; conduct succession planning; manage the continuity and transfer of essential 

knowledge, skills, and abilities; provide training and professional development to staff; and 

deploy its workforce efficiently. 

In addition, the FYR weakened the agency’s ability to attract and retain highly qualified 

professionals in the areas of contracting, financial management, information technology, human 

resources management, and medical support. It led to frequent staffing gaps in mission-critical 

positions overseas. Further, the practice of employing staff on 30-month tours compromised 

performance management by allowing supervisors to avoid actively managing underperforming 

employees. OPM recently characterized this unintended effect of the FYR as “a threat to 

effective performance management and mission accomplishment, and a risk to effective [human 

capital] management in accordance with the merit system principles and in compliance with 

Federal laws, rules, and regulations.” OIG estimated that over the five-year period from 2005-09,

excessive turnover driven by the FYR accounted for approximately 60 percent of $20.7 million 

in total turnover management costs.

4

Progress in Addressing the Challenge

In March 2013, the agency revised certain policies related to the administration of its personnel 

system. These changes included: appointing new hires for a period of five years rather than thirty 

months, adjusting probationary periods relative to the longer appointments (with a goal of 

generally converting current employees to five-year appointments), and clarifying procedures for 

separating employees during their probationary period.

 4 This estimate only included direct costs and did not take into account costs that were more difficult to quantify,

including: the loss of expertise when high-performing staff appointments ended; reductions in productivity; or gaps 

in institutional memory and knowledge.
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These recent policy and procedural changes will need to be assessed against their intended 

purposes, i.e., reduced turnover and enhanced recruitment.

What Needs To Be Done

Although the Peace Corps concurred with the five recommendations OIG made to reduce the 

negative effects the FYR has had on agency operations, all five remain open. The open 

recommendations are: (1) that the Director carry out the necessary reforms to the FYR to reduce 

the rate of employee turnover and increase the average length of employment of the agency’s 

direct hire employees; (2) that the Director identify which functions should be subject to periodic 

turnover to meet the needs of the agency, and implement a process to manage turnover so that 

the agency retains qualified personnel on the basis of merit and performance; (3) that the 

Director identify the agency’s core business functions and positions that currently suffer from 

frequent staff turnover and lack of continuity, and determine and implement a process for 

acquiring and retaining qualified personnel to perform those functions on the basis of merit and 

performance; (4) that the agency raise expectations among supervisors to actively address 

employee performance issues and provide supervisors with the training and support to correct 

inadequate performance and separate employees who do not improve; and (5) that the agency put 

in place more robust processes and systems to gather and analyze data on the causes of 

unwanted, early employee resignations, and develop data-driven solutions to curb the pace at 

which employees resign early.

Key OIG Resources

Final Evaluation Report: Impacts of the Five Year Rule on Agency Operations

Challenge Programming and Volunteer Training

Why This Is a Challenge 

Programming and Volunteer training are at the heart of the Peace Corps’ operations and enable 

the agency to achieve its primary mission. In 2012 OIG issued the report, Recurring Issues: OIG 

Post Audits and Evaluations Fiscal Years 2009 - 2011, which identified recurring management 

and performance challenges associated with the agency’s ability to effectively place, train, and 

support Volunteers. OIG has continued to identify and report challenges related to programming 

and Volunteer training in its country program evaluation reports issued in FY 2012 and FY 2013, 

with common problem areas being site development, the adequacy and applicability of Volunteer 

training, and coordination with host country ministries and project partners.

Site Development

Placing Volunteers in sites where they are safe, healthy, and productive is essential to their 

success. Insufficient site development can result in inappropriate sites where Volunteers struggle 

to achieve programming goals. Seventy-three percent of OIG evaluation reports issued in FYs 

2009-13 contained recommendations related to site development. Posts frequently had not 

established or documented clear site development processes, nor ensured that staff had been 

sufficiently trained to carry out their site development responsibilities. Many posts also failed to 

ensure that Volunteer housing had been thoroughly inspected and adhered to housing criteria.
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Volunteer Training

Training provides Volunteers with important knowledge and skills needed for productive and 

fulfilling service. Seventy-three percent of the posts OIG evaluated in FYs 2009-13 had training 

deficiencies. Language and technical training were two areas commonly in need of improvement. 

In some posts, technical training lacked relevance to Volunteers’ sites or was not practical 

enough to prepare them to carry out primary assignments. Some posts needed to make 

improvements in language training, particularly in local language instruction or access to tutors 

or other self-directed language training methods during service. Posts frequently needed better 

methods to assess training effectiveness and take well-informed steps to improve training. 

Host Country/Project Partner Coordination

Sixty-two percent of the posts OIG evaluated in FYs 2009-13 reported that post relationships 

with host country ministries and project partners needed improvement. Some posts have not 

adequately engaged key project partners in programming, including project design and 

implementation. Others have not sufficiently communicated project results and Volunteer 

achievements to host partner ministries and organizations. Not all posts had established formal 

communication methods that brought multiple parties together, such as project advisory 

committees. Furthermore, some posts had not developed and maintained memoranda of 

understanding with host country ministries and project partners. Without a structured way to 

work with project partners, posts were not able to take full advantage of their partners’ expertise. 

Progress in Addressing the Challenge

The agency has demonstrated an awareness of these issues and has taken several steps to

increase its focus on them.

Site Development

In 2012, the agency added an indicator in its annual performance plan that measures Volunteers’ 

satisfaction with site selection and preparation. The performance plan stated that the agency was 

going to improve guidance to posts and set appropriate expectations with Volunteers regarding 

site selection and preparation. The Inter-America and the Pacific region developed standardized 

site development and monitoring guidance in 2012 and in 2013 both the Europe, Mediterranean, 

and Asia and Africa regions issued versions of standardized site development and monitoring 

guidelines. As these guides are implemented the agency hopes to see improvements to site 

development and progress with Volunteer satisfaction regarding site selection and preparation.

Volunteer Training

Since 2011, the agency has been implementing a “Focus In/Train Up” initiative designed to 

improve programming and Volunteer training. The agency reports Focus In/Train Up is on track 

to reduce the number of total projects from 211 in FY 2009 to 161 in FY 2014, a 24 percent 

reduction. The agency has developed standardized learning objectives that are currently being 

piloted and are expected to be rolled out globally in FY 2014. The agency has also provided 

monitoring and evaluation training to overseas programming and training staff to better measure 

the effectiveness of programming and training. Although progress has been made, posts are still 

implementing important components of these initiatives designed to improve the delivery and 

assessment of Volunteer training.
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Host Country/Project Partner Coordination

The agency created the Office of Strategic Partnerships in February 2012 to assist posts in 

developing and implementing partnerships. In addition, the FY 2012-14 annual performance 

plans include an indicator that measures the percentage of project managers who meet with local 

partners as part of a project advisory committee (PAC). According to the 2012 Performance and 

Accountability Report, PAC use increased from 33 percent of all projects in FY 2011 to 69 

percent of projects in FY 2012. The agency reports that in FY 2013, the level of PAC use 

increased to 85 percent.

What Needs To Be Done

There are a variety of factors that contribute to issues with site development, Volunteer training, 

and host country/project partner coordination. In some cases, improved staff training would help 

make sure that staff are knowledgeable of important manual sections and guidance they need to 

follow. In other cases, headquarters needs to provide posts with the management tools,

information technology, and oversight that will help them carry out agency policy and 

procedures. 

Key OIG Resources

Recurring Issues: OIG Post Audits and Evaluations FY 2009-2011

Country Program Evaluation Reports FY 2009-13

Challenge Accountability of Medical Supplies 

Why This Is a Challenge

The Peace Corps maintains medical supplies to provide Volunteers with needed vaccinations, 

medications, and emergency medical support. Posts must maintain appropriate levels of medical 

supply inventory to provide quality Volunteer medical care. Peace Corps policy establishes the 

controls over the procurement, receipt, storage, dispensation, and disposal of medical supplies. 

The controls are designed to ensure Volunteers’ medical needs are met in a timely manner, that 

medical supplies are not expired and are authentic, and that medical supply inventory records are 

accurate and complete. Failure to fully implement medical supply policies creates opportunities 

for theft, diversions, waste, or other abuses at the posts that could have a serious negative impact 

on Volunteers’ health.

OIG first began reporting medical supply accountability as a systemic weakness in FY 2008. At 

that time, the Peace Corps substantially revised its medical supply policies and procedures to 

provide adequate separation of duties; track the purchasing, dispensing, and disposing of medical 

supplies; and mitigate the risk of loss or theft. However, consistent implementation of these 

medical supply policies across all posts has been a recurring issue. OIG post audits and 

investigative work repeatedly found that posts did not fully comply with agency policy and were 

not ensuring medical supplies were properly secured. Specifically, OIG found that posts were not 

consistently establishing proper separation of duties, physically safeguarding medical supplies, 

and implementing an effective process to track and record medical supplies as they were 

received, transferred, dispensed, and disposed. 
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Progress in Addressing the Challenge

During FY 2013 the Office of Health Services (OHS) continued to provide training and support 

to posts that struggled to implement the policy. In addition, OHS enhanced its oversight and 

analyses of medical supply inventory submissions from posts by identifying posts with 

significant discrepancies and conducting follow-up. The agency reported its follow-up included

twenty-three full site assessments, seven site assisted trainings, on-going review of Special 

Designated Drugs inventory, individual country feedback on policy adherence and overseas staff 

training for medical officers and country directors. Two of OIG’s four post audits issued in FY 

2013 found that post was generally in compliance with the Peace Corps’ medical supply policies; 

an improvement over prior years.

OHS has contracted for an electronic medical record system. The requirements for this system 

includes an electronic medical inventory tracking component that will index and track medical 

inventory and provide reports for management to use in overseeing the supplies across the world. 

Management anticipates that this system will help improve medical supply accountability. The 

system is expected to be rolled-out for FY 2015, and in early 2016, OHS will begin tracking and 

analyzing base line data.

What Needs to Be Done

Because of the limited number of staff at posts, several key medical supply responsibilities are 

assigned to staff that have other primary duties. As a result, these responsibilities may not 

receive the priority and attention to detail necessary to identify errors and stop theft or fraud. 

Headquarters and post management must provide sufficient training and oversight of staff to 

ensure policy is followed.

When the Peace Corps implements an automated medical supply inventory system, it must 

develop a work process that maintains the necessary separation of duties, tracks the supplies at a 

transaction level, and reports on lost or stolen supplies. The agency must clearly communicate 

the roles and responsibilities regarding the information system and train staff on its use. In the 

meantime, the agency must continue to train post staff on the various roles and responsibilities, 

emphasize to posts the importance of following policy, and hold posts accountable when controls 

are not in place and operating effectively.

Key OIG Resources

OIG FY 2014 Annual Plan

Capstone Report: 2012 Medical Inventory Issues

Management Advisory Report: Breakdown of Internal Controls of PC/Burkina Faso Medical 

Unit

Recurring Issues: OIG Post Audits and Evaluations FYs 2009-2011
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Summary of Financial Statement Audit and Management Assurances

TABLE 1: Summary of Financial Statement Audit

Audit Opinion Unmodified

Restatement Yes

Material 

Weaknesses

Beginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

Total Material 

Weaknesses

0 1 0 0 0 1 

TABLE 2: Summary of Management Assurances

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

Statement of 

Assurance

Qualified

Material 

Weaknesses

Beginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

Total Material 

Weaknesses

0 1 0 0 0 1

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of 

Assurance

Qualified

Material 

Weaknesses

Beginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

Total Material 

Weaknesses

0 1 0 0 0 1 

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of 

Assurance

Systems conform to financial management system requirements

NonConformancesBeginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

Total NonConformances0 0 0 0 0 0
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Financial Statements 

Improper Payments Information Act

The Improper Payments Information Act of 2002, P.L. No. 107-300, as amended by the Improper Payments 

Elimination and Recovery Act of 2010, P. L. No. 111-204, requires agencies to annually report information on 

improper payments to the President and Congress. OMB Circular A-123 Appendix C, Requirements for Effective 

Management and Remediation of Improper Payments, defines “significant improper payments” as improper 

payments that exceed both 1.5 percent of program payments and $10 million of all program or activity payments 

or $100 million (regardless of the error rate). Generally, an improper payment is any payment that should not 

have been made or that was made in an incorrect amount under statutory, contractual and administrative or 

other legally applicable requirements. Incorrect amounts are overpayments and underpayments (including 

inappropriate denials of payment or service). Improper payments include any payment that was made to an 

ineligible recipient or for an ineligible service, duplicate payments, payments for services not received, and 

payments that are for the incorrect amount.

As a small agency with only one program, the Peace Corps has no activities that are risk-susceptible to the 

amounts in the above specified thresholds, including the change from 2.5 percent of program payments to 

1.5 percent which became effective in FY 2013. All payments are subject to review although the review can be 

different based on the dollar amount and type of the payment. The requesting official who wants the goods or 

services and later certifies that the goods or services have been received performs the initial review of payment 

documentation. The requesting official’s supervisor later reviews the payment prior to payment release. Then, 

the budget officer or administrative officer performs another review in conjunction with ensuring funds have 

been obligated. Once these steps are completed, payment is examined and determined to be legal, proper, and 

correct by an authorized certifying officer to issue the payment. Recipients of pre-payments and pre-award of 

contracts are matched against the “Do Not Pay List” network of databases established in accordance with OMB 

Memorandum M-12-11, Reducing Improper Payments through the “Do Not Pay List,” dated April 12, 2012 and 

prior Executive Orders and Memorandums. Payments made by overseas posts are examined through a selective 

voucher sampling process in the headquarters. Those payments are processed through the International Treasury 

Services program of the Department of State’s Global Financial Services Centers. Further, payments made in the 

United States are processed through the U.S. Treasury, Kansas City Finance Center. Finally, all payments in the 

amount of $250,000 and above are reviewed extensively through a semi-annual system-generated report. 
APPENDICES
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Appendix 1

Status of Material Weakness and Significant Deficiencies

External independent auditor, Kearney & Company, P.C. issued the FY 2013 financial statement audit report which 

begins on page 116, transmitted through the Inspector General. The report identifies one Material Weakness and 

three Significant Deficiencies: Material Weakness 1, Financial Management Analysis and Reporting; Significant 

Deficiency 1, Property, Plant, and Equipment; Significant Deficiency 2, Information Technology Security; and 

Significant Deficiency 3, Accrual Validation.

The first table identifies the anticipated resolution dates for the Material Weakness and confirms the status as of the 

end of FY 2013. This is a new finding and is related to an insufficient calculation of severance liabilities, a 

restatement of FY12 financial statements, and financial reporting and analysis issues:

Material Weakness

Status at 

End of FY 

2013

Anticipated 

Resolution Date

Financial Management Analysis and Reporting Open June 2014

This year’s accomplishments (corrective actions) are shown in the second table along with the planned corrective 

actions for FY 2014 for each Significant Deficiency:

Material Weakness

Financial Management Analysis and 

Reporting Corrective Actions

FY 2013 Accomplishment 1. Corrected current year accounting treatment for proceeds of sale 

funds 

FY 2014 Accomplishments 1. Completed a restatement of FY12 Financial Statements 

2. Corrected accounting treatment of severance liability funds 

3. Corrected prior year accounting treatment of proceeds of sale funds

FY 2014 Planned Actions

1. Develop and implement a more rigorous methodology and calculation 

tool for a monthly assessment of Peace Corps’ severance liability

2. Record severance liability into a separate liability account for display 

on financial statements

3. Design and implement system control edit checks for self-balancing 

accounts in agency trial balance and accurate financial statements

4. Develop a research methodology for properly identifying and 

resolving reconciling items

5. Implement a more thorough review process for accounting 

adjustments and financial statement preparation

6. Institute standard operating procedures to ensure coordination of all 

CFO offices when recording financial statements 

Appendix 1

Status of Material Weakness and Significant Deficiencies
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The third table identifies the anticipated resolution dates for the three Significant Deficiencies and confirms their 

status as of the end of FY 2013. Two of the Significant Deficiencies (Property, Plant, and Equipment and 

Information Security Technology) have been open in previous years of with numerous corrective actions being 

accomplished each year followed by the identification of new audit recommendations in these Significant 

Deficiencies annually. One Significant Deficiency, Accrual Validation is a new finding:

Significant Deficiencies

Status at 

End of FY 

2013

Anticipated 

Resolution Date

Controls over Property, Plant and Equipment Need Improvement Open Sep 2014

Information Technology Security Open Sep 2014

Accrual Validation Open Sep 2014

This year’s accomplishments (corrective actions) are shown in the fourth table along with the planned corrective 

actions for FY 2014 for each Significant Deficiency.

Significant Deficiencies

Controls over Property, Plant, and 

Equipment Need Improvement Corrective Actions

FY 2013 Accomplishments 1. Updated Manual Section 511, Personal Property Management

2. Approved Funding for New Property Accountability System 

3. Updated Manual Section 711, Accounting for Property, Plant, and 

Equipment

4. Conducted Agencywide Inventory with Reconciliation Issues

5. Generated Exception Reports to facilitate Inventory Reconciliation

FY 2014 Planned Actions 1. Procure New Property Accountability System

2. Validate System’s Internal Controls

3. Conduct Data Verification and Clean-up

4. Implement and deploy Property Accountability System

Information System Security Controls 

Need Improvement Corrective Actions

FY 2013 Accomplishments 1. Implemented back up Tape Encryption

2. Improved Data Center Access Management

3. Provided Posts IT Contingency Planning Templates

4. Updated Manual:

Section 545, Mobile Information Technology Device Policy

Section 547, Use of Government Technology Services and 

Equipment

5. Completed 97% Employee and Contractor Annual Security Based 

Training

6. Improved internal and boundary vulnerability scans

7. On-going Actions to implement the configuration baselines
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FY 2014 Planned Actions 1. Complete implementation of the Agency’s Risk Management 

Framework

2. Expand disaster recovery testing

3. Formally sign agency Memorandum of Understandings with Third 

Party System Providers

4. Obtain agency approval for the following Forms and Guide:

Remote Access and Mobile IT Device Use Guide

Remote Access Request Form

User Verification Form (For Initial IT Training)

Accrual Validation Corrective Actions

FY 2013 Accomplishments 1. Established and performed substantive testing to assess the accuracy 

of estimated accruals

FY 2014 Planned Actions 1. Continue to perform and refine the accrual testing process 

2. Provide training to CORs and CFO staff for better understanding of 

accrual process
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Appendix 2

Glossary of Acronyms

AC-2 Account Management*

AVS Annual Volunteer Survey

BIA Business Impact Analysis

CARS Coordinated Agency Response System

CCB Change Control Board

CM-1 Configuration Management Policy and Procedures*

CM-2 Baseline Configuration*

CP-4 Contingency Plan Testing and Exercises*

DOL Department of Labor

DOS Department of State

EAP Emergency Action Plan

FDCC Federal Desktop Core Configurations

FECA Federal Employees Compensation Act

FISMA Federal Information Security Management Act

FITU Focus In/Train Up

FMFIA Federal Managers’ Financial Integrity Act

FMO Financial Management Officer

FSN Foreign Service National

FYR Five-Year Rule

GSA General Services Administration

GPRA-MA Government Performance and Results Modernization Act of 2010

IAP Inter-America and the Pacific Region

IPBS Integrated Planning and Budgeting System

IT Information Technology

KCO Kearney & Company

MD&A Management’s Discussion and Analysis

M&E Monitoring and Evaluation

MOU Memorandum of Understanding

MP-5 Media Transport*

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

OGE U.S. Office of Government Ethics

OHS Office of Health Services

OIG Office of Inspector General

OMB Office of Management and Budget

OPM Office of Personnel Management

OSIRP Office of Strategic Information, Research, and Planning

PAC Project Advisory Committee

PAR Performance and Accountability Report

PE-2 Physical Access Authorizations*
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PEPFAR President’s Emergency Plan for AIDS Relief

POA&M Plan of Actions and Milestones

PP&E Property, Plant, and Equipment

PSC Personal Services Contractor

PST Pre-Service Training

RA-3 Risk Assessment*

RA-5 Vulnerability Scanning*

SARRR Sexual Assault Risk Reduction and Response

TIS Technical Information Subcommittee

USGCB U.S. Government Configuration Baseline

*NIST SP 800-53
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