The Peace Corps

Performance and

Accountability Report

Fiscal Year 2012
The Peace Corps

Performance and

Accountability Report

Fiscal Year 2012

November 15, 2012

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.
Where Peace Corps Volunteers Serve

Asia (EMA)

CambodiaChinaIndonesiaNepalPhilippinesThailand

Pacific Islands (IAP)

Federated States of Micronesia, and PalauFijiSamoaTonga

Vanuatu

North Africa andThe Middle East (EMA)

JordanMoroccoTunisia

Latin America (IAP)

BelizeColombiaCosta RicaEcuadorEl SalvadorGuatemalaGuyanaHondurasMexicoNicaraguaPanamaParaguayPeruSuriname

The Caribbean (IAP)

Dominican RepublicEastern Caribbean:Jamaica

Antigua/Barbuda

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

Africa

BeninBotswanaBurkina FasoCameroonCape VerdeEthiopiaGhanaGuinea KenyaLesothoLiberiaMadagascarMalawi

Mali

Eastern Europe/Central Asia (EMA)

AlbaniaArmeniaAzerbaijanBulgariaGeorgiaKyrgyz RepublicMacedoniaMoldovaMongoliaRomaniaTurkmenistanUkraine

MozambiqueNamibiaNigerRwandaSenegalSierra LeoneSouth AfricaSwazilandTanzaniaThe GambiaTogoUgandaZambia

Updated September 2012

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

Contents

The Director of the Peace Corps iii

Management’s Discussion and Analysis 1

Mission and Overview 2

Organizational Structure 4

Work of the Volunteers 6

Performance Highlights 18

Looking Forward 27

Analysis of Financial Statements 32

Analysis of Systems, Controls, and Legal Compliance 36

 Management Assurances 38

Performance Section 39

Introduction to Agency Performance 40

Strategic Goal 1 43

Strategic Goal 2 55

Strategic Goal 3 59

Strategic Goal 4 65

Strategic Goal 5 71

Research and Evaluation 86

Financial Section 99

Message from the Chief Financial Officer 100

Financial Statements 103

Notes to the Financial Statements 107

Inspector General’s Audit Transmittal Letter 120

Auditor’s Report 122

Other Accompanying Information 137

Inspector General’s Statement on the Peace Corps’ Management and Performance Challenges 138

Summary of Financial Statement Audit and Management Assurances Tables 146

Improper Payments Information Act 147

Appendices 149

Appendix 1 – Audit Significant Deficiencies Summary 150

Appendix 2 – Glossary of Acronyms 152
A photo of an Education Volunteer working 

on a community garden in Ghana.
iii

THE DIRECTOR OF THE PEACE CORPS

WASHINGTON, D.C.

I am pleased to present the FY 2012 Performance and Accountability Report of the Peace Corps on behalf of the 

Volunteers and staff serving around the world. This report presents the agency’s financial and performance results, 

demonstrates its accountability, and provides progress on its key goals so the President, members of Congress, and 

the American people can assess the agency’s operational effectiveness. 

The Peace Corps was established in 1961 by then-President John F. Kennedy with a mission to promote world 

peace and friendship. Since that time, more than 210,000 Americans have served in 139 countries across the 

world. Volunteers accomplish that mission through the three core goals that first constituted—and which remain—

the foundation of 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.

At the end of the fiscal year, 8,073 Volunteers were serving in 76 countries promoting grassroots development and 

cross-cultural exchange. Volunteers work with partners in host communities to build local capacity and increase 

their understanding of Americans. The Peace Corps is the largest service delivery model of its kind—combining 

sustainable development with cross-cultural bridge building.

While the mission and core goals have remained the same for more than 50 years, today’s Peace Corps is a dynamic 

development organization, highly responsive to the evolving needs of the developing countries where it operates. 

Using its Country Portfolio Review tool, the Peace Corps is using data to ensure that it allocates its resources 

among countries in the most effective manner possible in order to maximize impact. In FY 2012, the Peace 

Corps re-entered two countries—Tunisia and Nepal—and programs in those countries will be fully operational in 

FY 2013. The agency will increase the number of Volunteers in Africa and graduate (close) programs in Bulgaria, 

Romania, Cape Verde, Antigua/Barbuda, and St. Kitts/Nevis in FY 2013. In addition, posts were permanently 

closed in Bolivia, Mauritania, and Kazakhstan, and operations in Turkmenistan and Suriname will be phased out 

in FY 2013. Finally, posts were temporarily suspended in Honduras, Mali, and Niger due to security issues. 

The highest priority of the agency remains the health and safety of our Volunteers. The Kate Puzey Peace Corps 

Volunteer Protection Act of 2011, Public Law 112-57, was enacted on November 21, 2011, and the agency has made 

considerable progress in implementing the new law. The act, in part, codified the reforms put into place over the 

past few years to ensure the safety, security, and support of Volunteers, including updating training for staff and 

Volunteers, establishing an external panel of national experts on sexual assault, hiring a nationally recognized 

Victim Advocate, and establishing procedures to ensure that allegations made by Volunteers are handled 

confidentially and appropriately. New safety and security training was conducted by 92 percent of posts in FY 2012 

and sessions are planned for the remaining posts in FY 2013.

The work of the Volunteer is at the heart of the Peace Corps mission. The agency continues to improve Volunteer 

training and program support through the Focus In/Train Up strategy begun in FY 2011. The strategy is designed 

to give Volunteers the skills and experience they need to assist their communities in implementing those projects 

that have proved to be most effective at achieving development results. Monitoring and evaluation is another 

critical part of the Focus In/Train Up strategy. 
iv

As part of this strategy, the Peace Corps has become an active partner in a number of whole-of-government 

initiatives, including the President’s Emergency Plan for AIDS Relief (PEPFAR), the Global Health Initiative, the 

President’s Malaria Initiative, and Feed the Future. Through these partnerships, Volunteers are able to maximize 

the impact of U.S. government development investments in their communities and to ensure that those projects 

are implemented effectively, owned by the community, and sustained over time. 

Agency operations were improved in FY 2012, enhancing efficiency and achieving cost savings in several areas. The 

renovation of the headquarters building was completed in March of this year and is expected to save $1.2 million 

per year. Additional savings will be realized through the consolidation of the Boston regional recruitment office 

into the New York City office. The new automated Volunteer application and medical processing systems went 

live in August, a major milestone in the redesign of the Volunteer Delivery System. This moves the agency from a 

paper-based process to an automated process. The property accountability system deployed in late FY 2011 worked 

toward centrally collecting the headquarters’ and the posts’ $35 million Property, Plant, and Equipment assets, 

although accountability issues still remain. Despite progress in systems implementation, the agency continues 

work toward fully satisfying the management and performance challenges set forth by the Inspector General.

Recent reforms are rooted in the Comprehensive Agency Assessment (www.peacecorps.gov/open/evaluations) 

which was completed in 2010 and laid the foundation for strengthening and reforming the Peace Corps. The 

FY 2012 annual performance plan incorporates the strategies of the assessment and other agency priorities into 

an aggressive new blueprint for reform. New indicators in the performance plan relate to the safety and security of 

Volunteers, the annual Country Portfolio Review, site selection and development, monitoring and evaluation, and 

strategic partnerships. The agency manages performance through formal quarterly strategic plan performance 

review sessions where senior leadership and managers review progress on goals at the strategic and operational 

levels. 

Several performance goals were met in FY 2012, notably, ensuring effective training for Volunteers, recruiting 

Volunteers that balance the needs of host countries with the available applicants, and managing Peace Corps 

resources effectively. While some goals were not met, partially due to the use of stretch targets to encourage high 

performance, several saw improvement in FY 2012, including enhancing the safety and security of Volunteers 

and providing Volunteers with quality medical and mental health services. Moving forward, the agency will 

seek to improve its performance towards those goals where adequate progress was not made in FY 2012, such as 

increasing the effectiveness of skills transfer to host country individuals and managing Volunteer recruitment and 

selection functions effectively and efficiently.

Independent external auditors rendered an unqualified (clean) audit opinion on the financial statements of the 

Peace Corps for the sixth consecutive year. There were no material weaknesses identified either by the auditors 

or through internal managerial reviews, and there were no instances of noncompliance with laws and regulations 

identified. The Federal Managers’ Financial Integrity Act unqualified management assurance statement is in the 

Management’s Discussion and Analysis Section.

The prestigious Association of Government Accountants’ Certificate of Excellence in Accountability Reporting 

was earned by the agency for the fifth consecutive year for its FY 2011 Performance and Accountability Report. 

Additionally, the agency received its first-ever Best in Class award for its description of agency activities.   

Financial and performance data presented in this report are complete and reliable through the continuing efforts 

of the dedicated and highly skilled financial management and performance staff members.
v

Financial management improvements implemented during FY 2012 and planned future improvements are shown 

in the Message from the Chief Financial Officer in the Financial Section.

The work that our Volunteers carry out every day of the year is remarkable—from the girls’ leadership camp 

organized by a Volunteer in Botswana where 30 girls aged 14 to 16 developed critical leadership and life skills 

to the Volunteer in Mongolia who worked with her community to open a nursing training center and lab in the 

local hospital which will serve as a training facility for 135 nurses to learn new nursing skills and improve current 

practices. Volunteers empower local people to take charge of their own futures and strengthen the bonds of 

understanding between the people of other cultures and the American people. 

In our inter-connected world, Peace Corps’ people-to-people approach to development is needed now more than 

ever. The Peace Corps helps build the capacity of our host countries to address issues of poverty, lack of opportunity, 

and gender inequality by working at the community level—the last ten miles where most development agencies 

rarely reach. Peace Corps Volunteers nurture the leaders of tomorrow, ensuring that they feel a connection to 

the United States, that they share our values and have a desire to actively engage with our country and the world. 

By helping other nations build the foundations of peace, prosperity, and stability at the community level, the 

Peace Corps is helping to ensure American leadership and security. 

Sincerely,

Carolyn Hessler-Radelet, Acting Director

November 15, 2012

A photo of Carolyn (Carrie) Hessler-Radelet 

returned Peace Corps Volunteer (’81-’83) in 

Western Samoa who became Acting Director 

of the Peace Corps in September 2012.
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MANAGEMENT ’S DISCUSSION AND ANALYSIS

A photo of an Agriculture Volunteer helping a local group of farmers improve their 

crops with eco-friendly insecticide techniques, composting, and herb gardening. 
MANAGEMENT’S DISCUSSION AND ANALYSIS

2 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

Mission and Overview

The Peace Corps was launched in 1961 as an entirely new kind of development organization. Its mission was to 

promote world peace and friendship by sharing America’s most precious resource—its people. The Peace Corps of 

today still maintains that ambitious mission and people-to-people approach to development while addressing the 

new challenges of the 21st century. 

History

In 1960, then-Senator John F. Kennedy challenged students at a late-night campaign stop at the University of 

Michigan to serve their country in the cause of peace by living and working in developing countries. The response 

was extraordinary. Thousands of students submitted letters and petitions to the campaign offering their service. 

The Peace Corps grew from that inspiration into a movement promoting a mission of peace and friendship across 

the world. 

President Kennedy signed the executive order creating the Peace Corps on March 1, 1961, shortly after taking office. 

He appointed Sargent Shriver as the first Director of the Peace Corps with the challenge of translating the idea of 

the Peace Corps into a legitimate development agency. By the end of the year, over 500 Peace Corps Volunteers 

were serving in Chile, Colombia, Ghana, India, Nigeria, Pakistan, the Philippines, Tanganyika (Tanzania), and 

St. Lucia—setting the foundation for a tradition of service that continues today.

The Peace Corps was a revolutionary idea in 1961—an alternative to contemporary approaches to promoting peace 

and advancing development. In a speech to the American Red Cross, Shriver noted: 

“Guns won’t change the world... Dollar bills won’t change the world. Nor will simple goodwill. What can 

change the world today is the same thing that has changed it in the past—an idea and the service of dedicated, 

committed individuals to that idea... The Peace Corps is a group of men and women dedicated to an idea.”

As Director of the Peace Corps, Shriver placed the words, “If they mean to have peace, let it begin here,” in the 

agency’s first headquarters building, embodying the spirit of the new movement for peace. Earlier this year, thenDirector Aaron S. Williams brought those words back to the entrance of the Peace Corps headquarters, and with 

them, the Peace Corps recommitted itself to the values that first shaped the agency over 50 years ago. The Peace 

Corps of the 21st century holds true to the practical idealism of its founders while responding to the realities of 

today. 

Mission and Core Goals

The Peace Corps mission and three core goals have endured since the agency’s founding, a testament to their 

relevance and the ongoing need for the Peace Corps. The mission is achieved through three core goals: 

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 accomplishes its mission by sending Volunteers to share their skills and experience with local 

communities in developing countries that have requested technical assistance. Since 1961, more than 210,000 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 3

MANAGEMENT’S DISCUSSION AND ANALYSIS

Volunteers have answered President Kennedy’s call to service by living and working with local people in 139 

countries. 

Volunteers work at the grassroots level and ensure the sustainability of their efforts by transferring their skills 

to their host country partners. They also build life-long friendships with local people, promoting a better 

understanding of Americans. When they return home, Volunteers bring back unique stories of languages learned, 

cultures embraced, and friends made. In sharing their stories with friends, family, and the American public, they 

help to increase Americans’ understanding of other peoples and global issues. 

 Begin callout:. “If they mean to have peace, let it begin here.”

—Sargent Shriver, the founding Director of the Peace Corps, talking with President Kennedy . End callout.
4 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Organizational Structure

To provide support for Volunteers in their efforts to achieve the Peace Corps mission, the agency is organized into 

two primary areas: overseas posts and headquarters offices. 

Posts are staffed by both American and host country national professionals who oversee Volunteer activities and 

address the unique needs of Volunteers while they serve in local communities, often under hardship conditions. 

In FY 2012, the Peace Corps had active programs in 76 countries that were administered through 70 overseas 

posts. Some posts manage programs in multiple countries in their vicinity to achieve cost savings in staffing and 

infrastructure while still providing a high level of Volunteer support. Each post is managed by a country director 

and supported by safety and security, medical, programming, financial, training, and administrative staff. Posts 

are organized into three regions: Africa; Europe, Mediterranean, and Asia; and Inter-America and Pacific. Global 

and regional efforts are coordinated centrally through the Office of Global Operations and managed by regional 

directors based at headquarters.

Headquarters offices, based in Washington, D.C., coordinate the general operations of the agency, providing 

overarching strategic guidance and targeted support to overseas posts and the Volunteers. Headquarters 

staff members recruit and select Volunteers for service; support the safety, security, and health of Volunteers; 

manage current and future agency resources; monitor and evaluate programs to improve performance; develop 

programming and training standards and materials for posts; and provide information technology and other 

necessary support services, among other functions. 

Regional recruitment offices in Atlanta, Los Angeles, Chicago, Dallas, New York City, Seattle, and San Francisco 

and field-based recruiters in several cities and college campuses expand the agency’s reach across the country to 

recruit talented Americans for Peace Corps service.

The agency is organized to support Volunteers and enhance their work to achieve the Peace Corps mission and 

three core goals.

A photo of a Health Volunteer 

conducting outreach activities 

targeting at-risk populations 

and teaches safer-sex practices 

in Jamaica.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

5

MANAGEMENT’S DISCUSSION AND ANALYSIS

Peace Corps Organizational Chart

Director Office of Congressional Relations

Office of Innovation

Deputy Director

Senior Advisor

White House Liaison

Office of 

Volunteer Support

Office of Strategic 

Information, Research 

and Planning

Office of Third Goal 

and Returned 

Volunteer Services

Office of 

Communications

Office of Volunteer 

Recruitment and 

Selection

Office of Safety

and Security

Office of Global 

Operations

Chief Compliance

Officer

Executive Secretariat

Office of Civil Rights

and Diversity*

Office of Management

Office of Acquisitions 

and Contract 

Management*

Europe, 

Mediterranean, and 

Asia Region

Africa Region

Office of 

Programming and

Training Support

Office of Global 

Health and HIV

Peace Corps 

Response

Inter-America and 

the Pacific Region

Chief of Staff

Office of the 

Chief Information 

Officer

Office of the Chief 

Financial Officer*

Office of Strategic

Partnerships

Overseas 

Posts

Overseas 

Posts

Overseas 

Posts

Office of Victim Advocacy

Office of

General Counsel

Office 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. 
6 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Work of the Volunteers

Overview

The Peace Corps delivers development assistance to host countries through the work of its Volunteers. All agency 

efforts are related to either placing Volunteers in the field or supporting Volunteers during and after service in 

achieving the agency’s mission and three core goals. 

The number of Volunteers and trainees serving in the Peace Corps as of September 30, 2012 was 8,073. This 

included 753 Volunteers funded by the President’s Emergency Plan for AIDS Relief (PEPFAR) and 163 Volunteers 

serving in short-term, specialized assignments through the Peace Corps Response Program. The number of 

Volunteers fielded each year is dependent on the available appropriated funds and the priorities of the agency. 

Approach to Development 

The Peace Corps is unique in its approach to development. Instead of providing monetary assistance to countries, 

the agency sends Volunteers to countries that have expressed a need for trained men and women. Volunteers share 

their skills and experience with local people and communities, transferring their knowledge so that communities 

are empowered to solve their development challenges. The agency’s approach to development is local—not just one 

country at a time, but one community and one person at a time.

The agency regularly receives more requests for new country programs and additional Volunteers than can be met 

with available resources—clear evidence of the Peace Corps’ importance to many nations and its impact around 

the world.

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. The agency 

Fiscal Years 2005 thru 2012

0

2000

4000

6000

8000

10000

2005 2006 2007 2008 2009 2010 2011 2012

Number of Volunteers

Volunteers

7,810 7,749

8,079 7,876 7,671

8,655

9,095

8,073

In 2005 there 

were 7,810 volunteers. In 2006 

there were 7,749 

volunteers. In 

2007 there were 

8,079 volunteers. In 2008 

there were 7,876 

volunteers. In 

2009 there were 

7,671 volunteers. 

In 2010 there 

were 8, 655 volunteers. In 2011 

there were 9,095 

volunteers. In 

2012 there were 

8,073 volunteers.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 7

MANAGEMENT’S DISCUSSION AND ANALYSIS

recruits and fields Volunteers with the skills, experience, maturity, and interest to work on projects at the grassroots 

level, often under hardship conditions, to help solve local development problems. Volunteers serve for 27 months, 

which includes up to 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—a key component of the Peace Corps approach to development. Volunteers’ ability 

to achieve results is enhanced by their constant, day-to-day interactions with local people.

Volunteer activities are designed to build the capacity of local individuals, communities, and organizations to 

meet their skill needs. In essence, Volunteers strive to work themselves out of a job. When community members 

are empowered and given the tools they need to improve their lives, the work of the Volunteers is sustained long 

after they return home.

While Volunteer projects vary across the world to reflect local needs, projects fall into six primary sectors: 

Agriculture, Community Economic Development, Education, Environment, Health, and Youth in Development. 

Agriculture - 345 Volunteers (4 percent) 

Agriculture Volunteers collaborate with farmers’ groups, nongovernmental 

organizations (NGOs), community members, and community-based organizations 

(such as women’s associations or youth clubs) to improve local food security 

through the promotion of improved food production, nutrition, and agribusiness 

development. Many of the techniques presented by Volunteers also help communities 

adapt to deteriorating environmental conditions, including 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, and soil and water conservation and management. Volunteers work 

Percentage of Volunteers by Sector Chart

0

2000

4000

6000

8000

10000

2005 2006 2007 2008 2009 2010 2011 2012

Education

43%

Environment

12%

Health

21%

Community 

Economic

Development

12%

Agriculture

4% Youth in

Development

6%

Other

2%

Education 43 

percent. Health 

21 percent. 

C o m m u n i t y 

Economic Development 12 

percent. Environment 12 

percent. Youth 

in Development 6 percent. 

Agriculture 4 

percent. Other 2 

percent.
8 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

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.

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 develop new value-added products.

Begin text box: A Volunteer Vignette: Making Chocolate in Panama 

Poverty among the rural citizens of my community is a persistent problem. Some families are lucky 

enough to have a few acres of their own land, and they use it to grow food for their families and produce 

cash crops to generate income. In my community, cacao is the principal money earner.  

To better collaborate in turning a portion of their cacao harvest into a sellable chocolate product, our 

community formed a small women’s group, Las Damas Noba. We experimented together with various 

ingredients, different forms of chocolate, and new packaging to make an appealing product. The chocolate 

produced by the group earns three or four times what the family would make selling unprocessed cacao. 

Together, we have found markets in three cities in our province and in two cities in other provinces. The 

group has been together for a little over a year and has been very successful. With the money they have 

earned, the women have each built up a small savings account and have begun to contribute substantially 

to their family’s monthly income.

The growing savings accounts of the women in the group is exciting. It shows that not only are they 

earning enough income to set some aside for savings, but also that they see the value in saving. They are 

also making enough money to occasionally pay other women to assist with the most time consuming 

processes in making chocolate. 

We continue to make plans for the future, experimenting with new forms of chocolate and identifying 

new places to sell. And our efforts are sustainable—the women in the group have started to share what 

they are doing with other women in town and they have begun to inquire how they can save as well. End 

text box

Notable Activities in Agriculture: 

•	 Responding to Climate Change through Permaculture in Paraguay: Late in 2011 and at the beginning 

of 2012, Paraguay faced two extreme weather events: drought and flood. The effects of both on agriculture 

were catastrophic. Adapting farming techniques to prepare in advance for major weather events has become 

a priority, and Volunteers contribute to that effort through education on the challenges of climate change and 

the promotion of permaculture, the creation of sustainable and self-sufficient agricultural systems. Volunteers 

held training events with small farmers on the effects of climate change on agriculture, the importance of risk 

analysis and prospect planning as critical tools in mitigating the effects of extreme weather events, and soil and 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 9

MANAGEMENT’S DISCUSSION AND ANALYSIS

water conservation techniques. Participants practiced what they learned by mapping a theoretical farm under 

different scenarios—including crops, livestock, and other components—and applying permaculture principles 

in the design. 

•	 Promoting Dry-Season Gardening in Ghana: Volunteers collaborated with the Ghanaian Ministry of Food 

and Agriculture and NGOs to develop local farmers’ skills in dry-season gardening, a method that enhances 

food security and provides income to local communities outside of the growing season for staple crops. Thirteen 

Volunteers and 12 local farmers attended a two-day training featuring sessions from agricultural experts which 

helped build the skills of the farmers and Volunteers in combating food insecurity.

•	 Generating Income through Fish Farming in Zambia: In collaboration with three NGOs and six ministry 

offices, a Volunteer worked with farmers to raise revenue through fish farming—overseeing the construction of 

60 fish ponds, totaling over 18,000 square meters, in a local area that had no prior experience with aquaculture. 

More than 800 kilograms of fish have been sold at a local market value of US$2,400. 

Community Economic Development - 985 Volunteers (12 percent)

Community Economic Development Volunteers help facilitate the economic 

development of local communities through three primary work areas: business 

development, organizational development, and personal money management. 

Volunteers in business development projects train and advise entrepreneurs 

in business planning, marketing, financial management, product design 

and distribution, and customer service.  They provide skills to local people, 

communities, and organizations to launch or expand businesses—from smallscale agribusiness (fruits, vegetables, and small livestock) to ecotourism ventures 

or handicrafts. Volunteers hold business and entrepreneurship workshops, business courses and camps, and 

business plan competitions for youth. Some of the activities focus on helping members of disadvantaged 

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

the workforce.

Volunteers collaborate 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.

Volunteers’ work also focuses on strengthening community groups by increasing their capacity to improve 

governance (developing mission statements, strategic plans, and by-laws), organizational management, 

project management and leadership, public awareness, fundraising operations, and advocacy. 

Volunteers help coordinate overall community economic development by bringing together governments, 

organizations, businesses, communities, and individuals for collaboration. 
10 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Begin text box: A Volunteer Vignette: Developing Business Skills in Cape Verde

My small, rural community has few income-generating opportunities, especially for women. I noticed an 

interest in cooking and a few attempts at selling food door to door, but the prices placed on products were 

below the cost of materials. So, when a few young women in the community expressed an interest in putting 

together a business and learning improved cooking techniques, I organized an informational meeting to 

see how many people were interested and to work out the details. Then, the young women took over. They 

located a place for our meetings, wrote and distributed letters asking for donations of ingredients from 

business owners in the city, and selected older women in the community to present their famous recipes.

Our group of 24 young women met three times a week for four weeks. Each afternoon, a respected woman 

from a neighboring town taught the ladies to make recipes that could easily be sold for a profit at street 

stands, fairs, or parties. I presented lessons on basic business practices, like hygiene in the kitchen, 

calculating costs, selecting product prices, customer service, business ethics, basic recordkeeping, 

competition between businesses, and creating a business plan. Trainees began each day by taking a pretest relative to the day’s business topic. At the conclusion of the training, the young women took a final 

exam demonstrating their increased understanding of business basics.

At the conclusion of the sessions, the women organized a community event to showcase their new skills. 

The group hosted an afternoon tea (for which they cooked 11 dishes), determined pricing based on costs, 

served customers, and kept records. The event was successful in terms of income generation and in the 

excitement it caused in members of the community at large. People from neighboring communities have 

approached graduates of the training to request their assistance at their own future events. Within a 

month’s time, the group assisted with two other culinary income-generating opportunities. The women 

have demonstrated an increased level of confidence in their abilities to cook as well as to earn income and 

organize community activities. End text box.

Notable Activities in Community Economic Development: 

•	 Developing Professional Networks in Moldova: Volunteers assisted community groups in establishing 

professional networks and have improved contacts with national and international organizations. Volunteers 

worked with three NGOs to develop new contacts with similar organizations from other parts of the country 

and together implemented a program to distribute boots to the Roma population. 

•	 Promoting Tourism Nationwide in Albania: Volunteers and their partners developed promotional packages 

highlighting attractions, regional hotels, and restaurants. They distributed the promotional packages through 

tourism information centers, hotels, and government offices.

•	 Developing a Neem Cream Business in Burkina Faso: Volunteers worked with women’s groups to develop an 

association where local women could sell their neem cream under one label. Neem cream is a natural ointment 

prepared from extracts of the neem tree (Azadirachta indica). With profits from their business, the association 

was able to grant loans to members. Their new business received a boost when they began working with a 

distributor who buys their product in bulk and resells it in the city. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 11

MANAGEMENT’S DISCUSSION AND ANALYSIS

Education - 3,483 Volunteers (43 percent)

Education Volunteers work with students and teachers both in and out of the 

classroom to build teaching and learning capacities across all education levels, from 

pre-school through primary and secondary schools to universities and teacher 

training colleges. Volunteers provide direct instruction or collaborate with local 

teachers to teach subjects such as English, math, science, information technology, 

and childhood literacy. 

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-teacher 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 host country women represent in developing their own communities, 

Volunteers in the Education sector, as well as those working on other projects, facilitate gender empowerment and 

education by promoting gender-equitable practices, connecting young girls with local role models, and building 

life skills and leadership. Volunteers serve as strong role models in their communities, underscoring the potential 

and opportunity of local youth. 

Education Volunteers often expand the Peace Corps’ impact on local development by incorporating content 

relevant to the challenges facing the communities in which they live—such as health and HIV/AIDS-prevention 

strategies—into their curriculum.

Notable Activities in Education:

•	 Developing a Literacy Instruction and Classroom Management Guide in Guyana: Volunteers worked 

with their counterparts at the regional education district office to develop a step-by-step guide for literacy 

instruction and classroom management. This collaborative activity was so well received by the Ministry of 

Education that the government is now distributing the manual to all district-level literacy coordinators and 

primary-school teachers throughout the country.

•	 Team-Teaching in Moldova: Volunteers spent the majority of their classroom hours team-teaching with 

Moldovan partners—sharing duties for planning, conducting, and evaluating the learning activities for the 

same group of learners. Team-teaching provides Volunteers with the opportunity to build the skills of local 

teachers while ensuring the sustainability of their work after their term of service.

•	 Preparing Local Teachers for Certification Exams in the Republic of Georgia: Peace Corps Response 

Volunteers were successful in helping to prepare their teacher partners for National Teacher Certifications 

exams. Notably, 90 percent of the teachers trained by Volunteers passed their exams compared to 55 percent 

country wide.
12 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Begin text box: A Volunteer Vignette: Teaching Science in Tanzania

Meet Lucy. She is the one scrunched up behind her cluttered desk, legs folded in the disjointed rungs of her 

chair with her imagination escaping out the window to join the afternoon sun. It took a month for me to 

put her face with her name, and another year before I heard her voice for the first time.

Lucy was typically uninterested in class. But when we put together a hands-on experiment, I was surprised 

to see her hand me the latest iteration of her experimental rockets with a toothy, wide-eyed grin. When 

the other students were waiting for the materials to arrive, Lucy quietly put together scraps from her first 

experiment to create another. 

After seeing her wake up during physics class, I spoke to her about her poor attendance. Full of tears, 

she looked me in the eyes and explained everything: how her father had died and her mother worked as a 

subsistence farmer; about the life she had fallen into to afford a room. She didn’t see a way out. I asked if 

I could find a way to take care of the school fees, would she promise me to be in school every day. She said 

she could. And she did.

The other teachers came up with enough money to pay her school fees all the way through graduation the 

next year. Lucy dove into her science classes, requesting evening tutoring in chemistry and even going so 

far as to convince another girl to give science another try. She also moved into student housing with the 

other girls interested in science. 

When the headmaster requested that a laboratory demonstration be prepared for the district 

commissioner’s visit on graduation day, Lucy stepped up to present, alone, a hands-on science experiment 

to the commissioner and his entourage, including many government officials at the village and district 

levels. In his address to the school the commissioner mentioned specifically “the students in the 

laboratory, who showed me a new way to teach science,” at which point he personally paid their exam fees 

in full. End text box.

Environment - 974 Volunteers (12 percent)

Volunteers in the Environment sector collaborate with host country partners to 

protect the local environment. They respond to deteriorating local conditions by 

promoting environmental education and awareness, natural resource planning and 

management, and environmentally sustainable income-generation activities. 

Environment Volunteers encourage sustainable natural resource planning and 

management by demonstrating and teaching others 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 partners to 
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MANAGEMENT’S DISCUSSION AND ANALYSIS

plan, manage, lead, and advocate for the protection of the local environment. Volunteers also help develop incomegeneration activities that create incentives for conservation of natural resources, such as ecotourism and crafts.

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

action on environmental issues. Volunteers train teachers to integrate more interactive teaching methods that focus 

on the environment into their curriculum. They also collaborate with schools and other organizations to promote 

environmental education through alternative means, including clubs, youth camps, and awareness campaigns.

Begin Text box: A Volunteer Vignette: Curbing Deforestation in Malawi

My village sits on a ridge above the valley, the plateau rising dramatically behind it. Passing the late 

afternoon hours sitting on my front step, my counterpart Dan and I watched a small plume of smoke rise 

from the forest, high up on the plateau. Dan looked at me and said, “Malasha” (charcoal). High up in the 

remaining intact forest on the plateau within the boundary of the national park, someone was poaching 

trees to make charcoal. When we see something like this happening, we always hope it is an isolated 

incident. But, the nine other small plumes of smoke I saw rising just that week alone tell a different story. 

The tale of deforestation is clearly seen marching up the slopes of the plateau. This vital watershed 

(arguably the most important in Malawi) is losing its forests at about 1 percent per year. However, the rate 

of deforestation varies widely. Some areas are being deforested at breakneck speed as people move up the 

mountain clearing new land, setting fires to drive animals for hunting, and selling off the forest to people 

in town in the form of charcoal. Much of this is due to the increased need for forest resources as a result of 

population pressures. 

I turned to Dan and asked why people are cutting down the trees. He gave the obvious answer to a simple 

question: “They want the trees.” From there the Nchenachena Afforestation Project was hatched. Using 

resources from the Peace Corps, we bought 10 kilograms of tree seeds of six different species from a seed 

bank in the capital. A few days later I met with a local NGO, told them of my project and sourced 15,000 

tree tubes at no cost. Then I headed back to the village to start the real work. 

Dan and I began community awareness work immediately. We spent weeks canvassing all the villages 

in our catchment area. We gave speeches on protecting the forest and offered trainings on how to start 

tree nurseries, how to plant trees, and how to be better stewards of the forest. We turned the project into 

a contest, with the community, group, or individual planting the most trees receiving a prize. Interest 

soared.

In all, 120 people in 10 villages participated in the project. Over 5,000 trees were planted. One community 

alone planted 3,125 trees. We encouraged people to plant woodlots up the mountain to help protect the 

watershed. While many communities preferred to plant timber species, we also had a lot of interest in 

multi-use and hardwood tree species. Dan has taken over the project and will continue it this year. With 

tree planting season right around the corner, we hope the turnout will be just as good as last year. End text 

box.
14 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Notable Activities in Environment:

•	 Establishing a National Tree Nursery Competition in The Gambia: Volunteers started a school tree nursery 

competition as part of an extensive effort to encourage reforestation throughout the country. The competition 

became an official event that was recognized by the president of the country and renamed the President’s AllSchool Tree Nursery Competition.  

•	 Establishing Fruit Orchards and the “Miracle Tree” in Senegal: Volunteers have been training local farmers 

in methods of fruit tree propagation, grafting, and orchard management. As a result, over 5,000 fruit trees were 

established. This effort included the promotion of the “miracle tree” Moringa oleifera, a multi-purpose tree 

highly valued for its health benefits as well as live fencing, fodder, and fuel. Opportunities are currently being 

explored to export Senegal-produced moringa oil and powder to the United States. 

•	 Constructing a School Made of Bottles in Guatemala: Inadequate disposal of solid waste is a widespread 

problem across the world, but Volunteers are coming up with creative projects to address the problem. In 

Guatemala, a Volunteer worked with his community to construct a 1,033 square-foot school constructed with 

concrete and more than 6,500 used plastic soda bottles filled with inorganic trash. Through the project, the 

community not only built a new school at a much lower cost, but it also significantly reduced its solid waste. 

Health - 1,688 Volunteers (21 percent)

The Peace Corps approaches global health issues by 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.

Health Volunteers work in four project areas: HIV mitigation; maternal, neonatal, and child health; environmental health; and life skills for healthy behaviors. 

Some projects include mitigation of noncommunicable diseases, malaria prevention and control, HIV/AIDS education, basic sanitation and hygiene education, 

community care of orphans and vulnerable children, and youth sexual and reproductive health education. 

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

address health needs.

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

care often 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. Increasingly, Volunteers are assigned to assist HIV/AIDS-related NGOs in expanding their technical, managerial, and administrative 

capacities. 

The Peace Corps is an active partner in the President’s global health initiatives, notably the President’s 

Emergency Plan for AIDS Relief (PEPFAR), the Global Health Initiative, 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 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 15

MANAGEMENT’S DISCUSSION AND ANALYSIS

serve, partner with other organizations to defeat malaria in target countries, and build an international malaria 

prevention community. 

Begin text box: A Volunteer Vignette: Combating Malaria and Generating Income 

through Mosquito Nets in Benin

In various meetings with the women’s group in my village, it soon became clear that malaria was the 

foremost threat to personal and communal health. I informed members of the possibility of ordering 

subsidized mosquito nets courtesy of an international NGO, and the group decided that holding trainings 

and selling the mosquito nets would be the best plan of action. 

While the majority of women in the group were familiar with mosquito nets, we decided to start off with 

a training-of-trainers session to make sure everyone started with a base of information. My counterpart, 

who is the pharmacist at the health center, and I led the session and stressed that sleeping under treated 

nets is the most effective method for preventing malaria. We compared the price of a net with prices of 

medication used to treat varying degrees of malaria to illustrate that malaria prevention is always cheaper 

than treatment. We also instructed the women on how to properly mount and use the nets. At the end of 

the session, two women were selected by their peers to lead the training sessions in the community.

At the first training, 20 women were present, as well as 117 community members. The women gave a 

20-minute presentation in both French and the local language followed by a round of questions. Members 

from the audience were then asked to show how to properly install and use the mosquito nets. After the 

session, nets were made available for purchase—74 were sold. Six weeks and eight trainings later, all the 

nets were sold. Over 500 people (more than 11 percent of the population of the community) attended the 

sessions. The initiative was so successful that, toward the end of the campaign, people from other villages 

were coming to the village to hear the training sessions and buy nets themselves. 

Since that time, the women’s group has submitted another order for mosquito nets, financing it with 

money made from previous sales. The group also tracked the ages of people purchasing the nets and 

found that men within the age range of 30-39 were the most frequent buyers—30 percent of total sales. 

This is noteworthy because before the start of the anti-malaria initiative, this demographic was the most 

doubtful and distrustful of the women’s ability to be successful. I really knew the project was a success 

when one night upon returning from the market I saw a man around 30 years old setting up his newlypurchased mosquito net outside in preparation for what was surely a mosquito-free night’s rest. End text 

box.

Notable Activities in Health:

•	 Developing a Mobile Phone Health Service in Armenia: Volunteers assisted the Red Cross to develop and 

implement a mobile phone service using SMS (Short Message Service) to answer anonymous questions about 

HIV and access to services. Within six months of its launch as a core Red Cross service, it responded to more 

than 26,000 queries. 
16 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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•	 Establishing a Healthy Schools Project in Guatemala: Volunteers are supporting the Ministry of Education 

with a healthy schools project that involves more than 130,000 students, 5,000-plus classrooms, and some 

4,500 teachers. As a result of the project, the percentage of students washing their hands after using latrines 

increased from 60 percent to 82 percent over a one-year period, and the number of classrooms that implemented 

a hand-washing system to use before eating school snacks increased from 29 percent to 82 percent.

•	 Teaching Life Skills in the Dominican Republic: Youth and adolescents throughout the country gained 

invaluable life skills in the prevention of HIV, sexually transmitted infections, and unplanned early pregnancies 

through Volunteers’ implementation and peer training of the Escojo Mi Vida (I Choose My Life) curriculum 

across all Peace Corps sectors. Escojo Mi Vida has reached an estimated 2,800 youth in the last year alone.

Begin text box: Peace Corps Volunteers Stomp Out Malaria in Africa

Through the Stomping Out Malaria in Africa initiative, over 3,000 Volunteers in 20 Peace Corps 

programs across Africa are exchanging ideas and working together in the name of malaria eradication.

Stomping Out Malaria in Africa is also the Peace Corps’ flagship initiative in the 2012 update of the 

agency’s Open Government plan (www.peacecorps.gov/open). The agency will leverage its Open 

Government website to share data sets and reports with the public in an open format and link to open 

platforms for the discussion of malaria eradication strategies. End text box.

Youth in Development - 435 Volunteers (6 percent)

Volunteers in all sectors engage with youth to accomplish their project 

objectives. Approximately three-fourths of all the people with whom Volunteers 

work are young men and women below the age of 25. When participating in 

Volunteer activities, local youth are more than beneficiaries; they are partners 

in development. Volunteers utilize youth development approaches to support 

the life skills and leadership development of youth, building the skills and 

capacity of the next generation of local leaders and contributing to development 

outcomes in all sectors. 

Youth in Development Volunteers work with young people, families, communities, and organizations 

to support healthy lifestyles, prepare youth for work, engage youth as active citizens, and build support 

structures. 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. 
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MANAGEMENT’S DISCUSSION AND ANALYSIS

Notable Activities in Youth in Development:

•	 Developing Young Leaders through Camp GLOW in the Dominican Republic: The Girls Leading 

Our World (GLOW) program—an empowerment program designed specifically for young girls—has been 

so successful that nine young women leaders between ages of 16-20 have been appointed to a project 

advisory committee. Committee members take an active role with Volunteers in planning sub-regional, 

regional, and national GLOW events, as well as in working with a girls’ group in their communities. 

•	 Teaching Critical Thinking Skills in Jordan: Two Volunteers created a curriculum for teaching 

critical-thinking skills to Jordanian students. The six-day Brain Camp introduces students to studying 

and learning techniques and gives them a chance to practice through games and fun activities. The 

curriculum was presented as a 30-hour summer camp or a full semester after school club. In the last 

year, 30 Volunteers were trained and 18 camps were launched. 

Begin text box: A Volunteer Vignette: At-Risk Youth Leadership Development 

in the Philippines

The kids I work with in the residential facility have all experienced abuse, neglect, and abandonment. 

They are extremely smart, talented, and eager to learn, but many of them lack the confidence and 

self-awareness to realize their potential. I wanted to give them an opportunity to learn that each 

of them can be a leader and that they have skills to offer others. So, in collaboration with another 

Volunteer and in consultation with the program manager, I developed a padayon camp (a camp that 

trains youth to be leaders) to build their skills and confidence.

The first day of the leadership training was a little challenging, but by the end, the participants 

were ready to design their camp for younger kids in the facility. They did so without much help from 

me or the other Volunteers. Their skills and confidence shined through the experience, and it felt 

great to see some of the shyest kids in the facility leading and directing groups of eight to 10 camp 

participants. 

At the end of the training, they were already discussing their ideas on how to do it again in their own 

communities. They also expressed their desire to lead their own camps next summer with outside 

young people from the community. 

Seeing the youth confident enough to want to lead others was a huge success. Individuals that grow 

up in residential facilities tend to be shy when it comes to relationships outside of the center. I was 

so proud of them for wanting to step out of their comfort zones and for realizing that each of them 

has something very valuable to offer to others. End text box.
18 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Performance Highlights

The Peace Corps is engaged in a period of sweeping reform unlike any since the founding of the agency. The foundation 

of the agency’s recent initiatives is the Comprehensive Agency Assessment (www.peacecorps.gov/open/evaluations), 

a study completed in 2010 that outlined a new vision, six strategies, and 63 recommendations focused on quality 

improvements to guide the Peace Corps over the next decade. The strategies of the assessment were integrated into 

the FY 2012 annual performance plan—the agency’s performance management framework. 

Performance Improvement 

The agency’s leadership has fully embraced and encouraged performance improvement. The Peace Corps’ performance mangement framework involves leadership, staff, and Volunteers at all levels across the world. The Acting 

Director of the Peace Corps recently noted at an all-hands meeting, “Our performance plan is our commitment—

to Congress, the White House, our host countries, and, ultimately, the American people—to support our host 

countries and our Volunteers in the most strategic and cost-effective way possible. It is our blueprint for reform.” 

The agency’s performance management framework is a structure for planning, monitoring, and evaluating efforts 

to achieve its mission. The framework is rooted in the agency’s FY 2009-2014 strategic plan and managed through 

quarterly performance reviews. 

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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MANAGEMENT’S DISCUSSION AND ANALYSIS

Performance Management Framework 

In the strategic plan, performance goals define the activities that occur under the agency’s five strategic goals 

(strategy) and are measured by performance indicators. Outcome goals define the short- to medium-term outcomes expected as the agency works toward achievement of the Peace Corps mission (impact). In sum, the agency’s 

strategies lead to activities, activities to outcomes, and outcomes to impact. Through quarterly strategic plan performance reviews, agency leadership and managers review progress at the strategic (strategic goals) and activity 

(performance goals and indicators) levels.

FY 2012 Performance at a Glance

This section summarizes the agency’s performance on its strategic and performance goals in FY 2012. The benefits 

to the American public of the agency’s work under each strategic goal, as well as results and key accomplishments 

related to performance goals, are highlighted. 

In FY 2012, nine of 14 performance goals were met. A goal is considered “met” if at least half of the performance 

indicators achieved their targets. Performance trends as well as plans and timelines to improve performance for 

unmet targets are included in the Performance Section. Detailed information on the results for all 40 indicators is 

also offered in the Performance Section. 

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

meet their skill needs

Capacity building is at the core of the work of all Peace Corps Volunteers. 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 meet their skill needs. 

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

Strategy (Strategic Goals)

Performance

Goals and

Indicators

Outcome Goals Mission and

Core Goals

Activities Outcomes Impact
20 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Performance Goal Summary

Performance Goal Indicator Targets Met Goal Met

1.1.1: Ensure the effectiveness of in-country programs 2 of 4 Yes

1.2.1: Ensure the effectiveness of in-country training 4 of 4 Yes

1.3.1: Increase the effectiveness of skills transfer to host country 

individuals, organizations, and communities

1 of 3 No

Key Accomplishments:

•	 Building the capacity of local people: Volunteers enhanced the capacity of host country individuals, 

communities, and organizations to meet their own needs by transferring their skills through training and 

working collaboratively. In the three Host Country Impact Studies completed in FY 2012, 93 percent of host 

country national respondents noted that the training provided by Volunteers enhanced their skills. 

•	 Standardization of Volunteer training through the Focus In/Train Up strategy: Significant progress 

was made on the Focus In/Train Up strategy in FY 2012. The agency developed and fielded technical training 

packages for the Education, Community Economic Development, and Youth in Development sectors. The 

core training package for all Volunteers—which includes sessions on monitoring and evaluation, integrating 

into the community, and professionalism in service—was also launched. When all sector technical training 

packages are standardized (anticipated for FY 2013), the agency will be able to better evaluate the effectiveness 

of training to ensure Volunteers are prepared for service.

•	 Improvement of Volunteer language-score data collection: Proficiency in local languages is a necessary 

skill for Volunteers that helps them to integrate into their communities, work effectively, and enhance their 

safety and security. As a result, all Volunteers who learn languages during pre-service training must meet a 

certain level of proficiency to serve in their communities. In FY 2012, the agency worked with posts to ensure 

language scores were collected and stored properly. This improved compliance in the official recording of 

language scores; in FY 2012, 51 posts recorded language scores compared to 44 posts in FY 2011. Enhanced 

collection of language scores will provide the agency the information it needs to identify regions, countries, or 

languages where best practices or opportunities for improvement exist. 

•	 Prioritization of site selection and preparation: Ensuring the appropriate selection and preparation of 

Volunteer sites has been a persistent challenge for the Peace Corps. In FY 2012, critical steps were taken to 

address this challenge. Informed by responses from Volunteers through the Annual Volunteer Survey, the 

agency demonstrated the priority it was placing on the improvement of site selection and preparation by 

including a new indicator in the agency’s performance plan that tracks Volunteers’ satisfaction with site 

selection and preparation. The agency is improving guidance to posts and working with Volunteers to set 

appropriate expectations for the site selection and preparation process.

Begin callout: Peace Corps ranks Number 2 among top 10 U.S. ethical employers according to 

59,600 undergraduates as reported by Universum. Among information technology (IT) students, 

the Peace Corps ranked seventh in the top 20 federal agencies as ideal employers. End callout.
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MANAGEMENT’S DISCUSSION AND ANALYSIS

Begin text box: Focus In/Train Up: Maximizing Peace Corps’ Impact 

through Highly Effective Projects and World-class Volunteer Training

The Focus In/Train Up strategy supports the Comprehensive Agency Assessment 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.” 

At the core of the strategy is the reality that the majority of the agency’s Volunteers are recent college 

graduates with limited professional experience. Recognizing this, the Focus In/Train Up strategy 

drives the agency to identify a smaller set of technical interventions that can be effectively delivered by 

Volunteers. After projects are focused in, the agency develops world-class technical training programs 

to prepare Volunteers for service and equip Volunteers and staff with skills to monitor and evaluate 

their work. The agency measures results through standard indicators that will allow the Peace Corps to 

demonstrate its impact across projects and countries.

The implementation of Focus In/Train Up was a major area of activity in FY 2012. All three regions (Africa; 

Europe, Mediterranean, and Asia; and Inter-America and Pacific) engaged in major project reviews to 

focus in on effective interventions that meet local community needs. The global core training package, 

including sessions on monitoring and evaluation, was sent to the field for pilot studies. Standard indicators 

are in development for each sector. When complete, Volunteers will be able to better demonstrate their 

contribution to the development of their community. End text box.

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

organizations, and communities served by Volunteers

Volunteers represent the people, cultures, values, and traditions of the United States in overseas communities 

that may never have directly interacted with Americans before. As Volunteers build local capacity through their 

work, they also develop deep friendships with local people. They model some of the finest characteristics of the 

American people: generosity of spirit, a strong work ethic, commitment to service, and a collaborative approach 

to problem-solving. Through their interactions with individuals and communities, they dispel myths about 

Americans, promoting a better and 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 partnerships with local people that endure long after their terms of service are completed. 

Performance Goal Summary

Performance Goal Indicator Targets Met Goal Met

2.1.1: The work and life experiences of Volunteers in-country 

promote host country national learning about Americans

2 of 3 Yes
22 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Key Accomplishments:

•	 Promoting a better understanding of Americans on the part of local people: In the three Host Country 

Impact Studies completed in FY 2012, 87 percent of participants reported more positive opinions of Americans 

as a result of their interactions with Volunteers. Volunteers shared the American culture with local people by 

setting up after-school clubs, showing photographs of their family and friends, celebrating U.S. holidays, playing 

traditionally American sports, and hosting meals with food from the United States. In addition, Volunteers 

worked to connect their local community with the American public through Peace Corps programs, such as the 

Peace Corps Partnership Program (http://donate.peacecorps.gov) and Coverdell World Wise Schools program 

(http://wws.peacecorps.gov/wws). 

•	 Three Host Country Impact Studies completed in FY 2012: Host Country Impact Studies were completed 

in El Salvador, Ghana, and Paraguay, bringing the total number of studies conducted since FY 2008 to 24. 

Host Country Impact Studies are currently the agency’s only independent source of impact information 

derived directly from the people with whom Volunteers work. Results from the Host Country Impact studies 

completed in FY 2012 suggest that the sustained day-to-day interactions of living and working side-by-side 

with Volunteers help to promote a better understanding of Americans on the part of local people.

•	 New counterpart survey initiated: In FY 2012, the agency initiated the development of an annual, worldwide 

survey of host country counterparts. The new counterpart survey will contribute to the Peace Corps’ 

assessment of its impact, directly capturing the viewpoints of host country nationals on the effectiveness of 

Volunteers in skills transfer (Strategic Goal 1) and promoting a better understanding of Americans (Strategic 

Goal 2). When complete, the counterpart survey will include standardized questions that will be asked directly 

of counterparts during site visits and a dedicated database for the storage and reporting of counterpart data. 

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 

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 the skills needed to 

work successfully in a globalized world, building a more competitive U.S. workforce. Americans also increase their 

interaction with overseas communities, contributing to peace and friendship between people in the United States 

and other countries.

Begin callout: Fifty years ago, 65 percent of the people volunteering to join the Peace Corps 

were men and 35 percent were women. Today, 66 percent of Volunteers during the 2000s are 

women working worldwide in education, health, nutrition, small business, and agriculture. Late 

Peace Corps founder Sargent Shriver once Director of the Peace Corps expected women to serve 

when the Corps was first proposed, saying, “The women of our country have much to contribute 

to the peoples of other lands, and the Peace Corps will rely greatly upon their talents.” 

End callout. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 23

MANAGEMENT’S DISCUSSION AND ANALYSIS

Performance Goal Summary

Performance Goal Indicator Targets Met Goal Met

3.1.1: Volunteers share their in-country experiences with 

family, friends, and the American public

2 of 3 Yes

3.1.2: Increase returned Peace Corps Volunteers’ cultural 

outreach to the American public through Peace Corps 

programs

1 of 2 Yes

Key Accomplishments:

•	 Development of a Third Goal strategy: The Comprehensive Agency Assessment recommended that the 

agency develop an agencywide strategy for achieving the Peace Corps’ third core goal. In FY 2012, the agency 

underscored its commitment to this recommendation by establishing the Office of Third Goal and Returned 

Volunteer Services. The new office is now coordinating efforts by the agency, Volunteers, and returned 

Volunteers to promote a better understanding of other peoples on the part of Americans. The agencywide 

Third Goal strategy will be finalized in FY 2013.

•	 Increased engagement with returned Volunteers to share their stories with the American public:

The agency reaches out to returned Volunteers to provide opportunities for them to bring the world back 

home, exposing Americans to new people and cultures. The number of returned Volunteers who share their 

Peace Corps experience with the American public through agency-initiated activities continues to exceed 

expectations each year. In FY 2012, more than 10,000 returned Volunteers participated in events throughout 

the country.

•	 Leveraging technology to reach new audiences: Currently serving Volunteers and returned Volunteers 

are increasingly taking advantage of new technology to share their experiences with family, friends, and the 

American public. In FY 2012, 74 percent of Volunteers reported sharing their experiences with family and 

friends through social media. Additionally, 54 percent utilized personal websites or blogs. The agency also 

offered Volunteers the opportunity to submit photos and stories related to their service to the Peace Corps 

Digital Library (http://collection.peacecorps.gov/). Current and returned Volunteers submitted 646 photos 

and stories in FY 2012. Notably, the agency held the Peace Corps AIDS-Free Generation Photo Contest to 

raise awareness of the HIV/AIDS prevention and care work that Volunteers do across the world. The winning 

submissions of the more than 500 photo entries from Volunteers and staff were displayed at the International 

AIDS Conference in Washington, D.C., in July 2012.

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

technical needs of host countries

Service as a Volunteer is a challenging and rewarding experience—“the toughest job you’ll ever love.” Volunteers 

leave family and friends back home for two years, learn new customs and life skills, and work on pervasive 

development issues, often in challenging situations. Unique individuals who want to make a difference in the world 

are attracted to Peace Corps service and are committed to advancing the agency’s mission and core goals. 
24 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

The agency actively recruits individuals willing to make the sacrifices associated with Volunteer service who also 

have the skills to meet the needs of local communities. To ensure Volunteers represent the diversity of America, 

the agency actively encourages individuals from underrepresented groups across the United States to apply for 

Volunteer service. Volunteers are recruited, selected, and fielded when posts need them through the Volunteer 

Delivery System.

Public Benefit: Volunteers are the face of America in the communities where they serve. When Volunteers are 

recruited who have the skills and experience requested by host communities, they are well positioned to build 

local capacity. Furthermore, a diverse Volunteer corps helps to promote a more complete and enriched understanding of Americans and contributes to local development goals. 

Performance Goal Summary

Performance Goal Indicator Targets Met Goal Met

4.1.1: Recruit Volunteers who balance the needed manpower and 

technical needs at post with the available applicant pool and its 

skills

2 of 2 Yes

4.1.2: Manage Volunteer recruitment functions in an effective and 

efficient manner

0 of 2 No

4.2.1: Recruitment and Volunteer placement efforts reflect the 

diversity of Americans

1 of 2 Yes

Key Accomplishments:

•	 Launch of the new online Volunteer application: The new Peace Corps application (www.peacecorps.

gov/apply) went live on August 15, 2012—a major milestone in the ongoing Volunteer Delivery System (VDS) 

redesign project.  The VDS redesign project was initiated in 2009 to modernize the business processes and 

technology utilized by the agency to request, recruit, and select Volunteers for Peace Corps service. 

The implementation of the new application moves the agency from a paper-based process to an automated, 

electronic application processing system. The new technology will reduce paperwork, improve transparency 

with applicants, facilitate information exchange between posts and headquarters staff, and improve 

communication between the Peace Corps and applicants. The medical review and invitation processes have 

also been improved—reducing medical review costs for the majority of applicants and making it possible to 

extend invitations to applicants earlier in the process.

•	 Progress in recruiting a diverse Volunteer corps: In FY 2012, the agency prioritized the recruitment of 

individuals from underrepresented groups to ensure the Volunteer population accurately reflects the diversity 

of Americans. Applications from ethnic and racial minorities increased from 26 percent of all applications 

last year to 27 percent in FY 2012. The agency secured these gains in diversity recruitment by developing and 

maintaining relationships with minority-serving organizations such as Alpha Kappa Alpha Sorority Inc. and 

the Hispanic Association of Colleges and Universities. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 25

MANAGEMENT’S DISCUSSION AND ANALYSIS

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—both human and financial 

resources—is critical to enabling Volunteers to focus on their work and to ensure a safe and productive service for 

every Volunteer. 

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. 

Performance Goal Summary

Performance Goal Indicator Targets Met Goal Met

5.1.1: Enhance the safety and security of Volunteers 1 of 4 no

5.1.2: Provide quality medical and mental health services to trainees 

and Volunteers 

1 of 3 no

5.2.1: Provide effective and responsive financial management that 

accurately reflects domestic and overseas operations

1 of 2 yes

5.2.2: Ensure the effective management of Peace Corps resources 2 of 3 yes

5.2.3: Ensure optimal performance of critical Peace Corps processes 0 of 1 no

Key Accomplishments:

•	 Key improvements in providing for the safety and security of Volunteers: The agency continued to build 

on the gains made over the last two years to better support the unique safety and security needs of Volunteers. 

In FY 2011, the agency updated the safety and security training provided to Volunteers. New training sessions 

relate to personal security, sexual-assault awareness, reporting procedures, and bystander intervention. The 

majority of posts (92 percent) implemented all of the new training sessions this year. 

The Peace Corps is developing a Sexual Assault Risk Reduction and Response program to reduce the risk of 

sexual assaults and ensure that Volunteers receive compassionate, timely, and comprehensive support should 

a sexual assault occur. Since April 2012, more than 350 overseas staff members have received training on 

the agency’s sexual assault protocols and how staff can support Volunteer victims of sexual assault. The 

Peace Corps also formally established the Office of Victim Advocacy to provide support for Volunteers (both 

currently serving and returned) who are victims of serious crimes. Finally, the agency improved the support 

provided for medically evacuated Volunteers who are victims of sexual assault, stalking, or other serious 

crimes.
26 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Begin text box: Protecting and Supporting Volunteers through the 

Kate Puzey Peace Corps Volunteer Protection Act of 2011

The Kate Puzey Peace Corps Volunteer Protection Act was signed into law by President Obama on 

November 21, 2011. In part, the act codifies a number of the reforms the Peace Corps has put into place 

over recent years to better protect and support Volunteers, including the following:

•	 Developing the Office of Victim Advocacy, dedicated to making sure victims of crime receive the

emotional, medical, legal, and other support they need during and after service

•	 Updating training for Volunteers and staff on sexual assault awareness, risk-reduction strategies,

bystander intervention, and reporting and response procedures

•	 Creating an external body of experts in the field of sexual assault and returnedVolunteers to provide

advice on Peace Corps sexual assault risk reduction and response strategies

•	 Establishing procedures to ensure that allegations made by Volunteers are handled confidentially

and appropriately

The new law ensures Peace Corps’ systems designed to protect and support Volunteers remain at the core 

of agency operations now and into the future. The act is named in honor of Kate Puzey, a Peace Corps 

Volunteer who died while serving in Benin in 2009. End text box.

•	 Continuation of the quality improvement program to strengthen medical and mental-health services 

provided to Volunteers: Through the Health Care Quality Assurance Council, the agency is using data to 

identify opportunities and execute action plans to improve the medical and mental-health services provided 

to Volunteers. For example, the agency analyzed responses from the Annual Volunteer Survey to identify the 

posts where Volunteers were least satisfied with the medical care provided by Peace Corps medical officers. By 

comparing the responses to other data, the agency uncovered a connection between low Volunteer satisfaction 

and high medical staff turnover. As a result, the agency is focusing attention on improving retention of medical 

staff to increase the stability of medical care provided to Volunteers.

•	 Graduated five Peace Corps countries based on performance information derived from the Country 

Portfolio Review: The second annual Country Portfolio Review was completed in FY 2012, and the agency 

has commenced work for the review in FY 2013. Through the annual Country Portfolio Review, the agency 

utilizes external and internal data to inform decisions on the size and reach of the Volunteer population around 

the world, including country entries and exits. Through the reviews completed in FY 2011 and FY 2012 the 

agency identified opportunities to graduate programs in countries that had reached a relatively higher state 

of development than other countries in its overall portfolio. The review informed the agency’s decisions 

to graduate (close) programs in Bulgaria, Romania, Cape Verde, Antigua/Barbuda, and St. Kitts/Nevis in 

FY 2013. Decisions to graduate these programs allow the agency to focus more resources on areas of the world 

with greater need and where Volunteers can have the greatest impact.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 27

MANAGEMENT’S DISCUSSION AND ANALYSIS

Looking Forward

Throughout its history, the Peace Corps has adapted and responded to emerging issues, while remaining focused 

on its mission and core goals. The agency regularly reviews and modifies its operations to proactively address the 

changing conditions in which Volunteers operate through innovative and new approaches. The agency utilizes its 

performance management framework to sustain the gains it has made to build a stronger Peace Corps that is wellequipped to respond to the challenges of the 21st century.

Safety and Security of Volunteers

The economic, political, and environmental conditions in many of the countries where the Peace Corps operates 

can be fragile. Improving local conditions through development is central to the agency’s mission and as Volunteers 

work to achieve that mission, they often serve in communities where the potential for crime or conflict exists. 

The safety and security of Volunteers is the agency’s highest priority. Volunteers commit themselves to serving 

their communities; in turn, the agency is committed to maximizing Volunteers’ well-being, allowing them to 

focus on their assignments and ensuring that they return home safely. A safe and productive service for every 

Volunteer is central to Peace Corps’ ongoing success.

Peace Corps’ approach to Volunteer safety and security is multi-faceted. Responsibility is shared among staff, 

Volunteers, and local communities. The agency ensures the safety and security of Volunteers through prevention 

and response strategies, including conducting thorough site development and monitoring; providing in-depth 

Volunteer training; regularly reviewing and improving safety and security systems; implementing effective 

incident response and emergency action procedures; collecting and reporting incident data in a timely fashion; 

and maintaining an active awareness of the local security environment.

As local security environments continue to evolve, the agency will work closely with embassy staff and the 

governments of host countries to identify threats to Volunteers and respond appropriately. As situations change, 

the agency will adjust its safety and security strategies to best protect its Volunteers. 

The agency has taken decisive action in a number of instances to aggressively and quickly respond to changing 

security circumstances. For example, despite the high need in the Sahel region of Africa for the services provided 

by Volunteers, programs have been closed (Mauritania) and suspended (Mali and Niger) in recent years due to 

political instability and a deteriorating environment for development workers. In FY 2012, operations in the 

Northern Triangle of Central America (El Salvador, Guatemala, and Honduras) were realigned as a result of 

an increasingly insecure environment indicated by crime incident data and feedback from Volunteers in the 

area. Other organizations in the area followed Peace Corps’ lead in reconsidering their safety and security 

systems, particularly in Honduras. Volunteer activities are currently suspended in Honduras, and the agency 

has implemented measures in El Salvador and Guatemala to help reduce the risk for crime for Volunteers, 

including: requiring Volunteers to live with host families for their full term of service; creating regional offices; 

appointing regional Volunteer leaders; and providing Volunteers with safer modes of transportation. 

With the passage of the Kate Puzey Peace Corps Volunteer Protection Act of 2011, a number of the reforms the 

Peace Corps has put into place over recent years to better protect and support Volunteers have been codified into 

law. Continuing to implement the law will be a primary focus for the agency in the coming years. 
28 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Changing Conditions in Host Countries

Volunteer projects are reviewed regularly by the agency and host country partners in order to address changing 

local needs within the context of evolving local and global trends. 

Increasingly the Peace Corps is addressing food insecurity, a critical global concern. The increased need for basic 

resources, resulting from the pressures of an expanding world population and climate change, is and will remain a 

major development challenge. The impoverished individuals and communities that rely on the land through rainfed agriculture, herding, and other subsistence activities are particularly affected by a changing environment. 

As a result of diminished agricultural productivity, communities face poverty, hunger, and malnutrition, which 

exacerbate other development issues, including poor health, low education, and urban migration.

Volunteer activities in support of increased food security are expanding to address this critical development 

challenge. Across the world, Volunteers are promoting sustainable methods for local people to increase agricultural 

productivity, address water shortages, and feed their families. In support of the President’s Feed the Future 

initiative (www.feedthefuture.gov) and in partnership with the U. S. Agency for International Development, the 

Peace Corps will equip more than 1,000 Volunteers to address food security needs across the world and properly 

support, monitor, and evaluate their contributions to this initiative. 

The new program in Nepal is a prime example of the agency’s work to increase food security in vulnerable 

populations. In collaboration with the President’s Feed the Future initiative and the U.S. Agency for International 

Development, food security Volunteers in Nepal will target the needs of the most marginalized groups in the 

country, including rural women and children, religious and ethnic minorities, and members of lower castes, to 

improve food security. 

Competition for Talented Americans

The Peace Corps is a premier service opportunity for Americans who want to make a difference in the world—

attracting the best and the brightest to serve in challenging conditions to introduce tangible and sustainable 

improvements in lives of those with whom they live and work and to promote mutual understanding around the 

world. In return, Volunteers gain skills and experiences that enrich their lives by increasing their competitiveness 

in the global marketplace and providing them with lifelong friendships both with other Volunteers and with local 

counterparts, beneficiaries, and host families. With over 210,000 individuals having served as Volunteers since 

1961, many Americans have a relative, teacher, doctor, or friend who served. A significant number of international 

development and foreign policy specialists received their initial overseas training in the field as Peace Corps 

Volunteers. 

The application process to become a Volunteer is competitive. The agency aggressively recruits Volunteers who 

have the skills, experience, and maturity to successfully meet the skill needs of local communities.

While the Peace Corps remains a top service choice, international and domestic service opportunities have 

expanded considerably in recent years, increasing the competition for talented Americans. Service-minded 

individuals now have several alternatives from which to choose, including those requiring a shorter time 

commitment. The challenge is most acute in recruiting individuals with highly technical skills and multiple years 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 29

MANAGEMENT’S DISCUSSION AND ANALYSIS

of work experience. The two-year time commitment, limited financial benefits, and challenging living conditions 

of Peace Corps service can make other volunteer and employment opportunities more attractive to some. 

The agency will continue to address this challenge by promoting the unique benefits of Peace Corps service to 

targeted groups and experimenting with the service delivery model to make the agency more competitive. 

The Peace Corps Response (PCR) program is one example of agency innovation. The PCR program 

(www.peacecorps.gov/response) offers seasoned professionals the opportunity to undertake short-term, highimpact assignments in various programs around the world. Positions average six months in length and are designed 

to address development needs as identified by the host country. While PCR historically was only available to 

eligible returned Volunteers, in FY 2012, the agency piloted an expansion of the program to all Americans with 

at least 10 years of work experience. This change in the PCR program will make the agency a more competitive 

option for experienced Americans interested in Peace Corps service.

Begin callout: Life in the Peace Corps will not be easy. There will be no salary and allowances 

will be at a level sufficient only to maintain health and meet basic needs. Men and women 

will be expected to work and live alongside the nationals of the country in which they are 

stationed—doing the same work, eating the same food, talking the same language.

But if the life will not be easy, it will be rich and satisfying. For every young American who 

participates in the Peace Corps—who works in a foreign land—will know that he or she is 

sharing in the great common task of bringing to man that decent way of life which is the 

foundation of freedom and a condition of peace.

—President John F. Kennedy End callout.

Demonstrating Impact

Every day, Volunteers improve the lives of local people and promote peace and friendship between America 

and host communities. The positive impact of Volunteers can be seen by visiting any Volunteer site. However, 

demonstrating the aggregate impact of Volunteers over the years has been challenging, particularly in the complex 

social and economic environments where Volunteers live and work. Large-scale data collection is complicated and 

costly, and baseline data is rarely collected due, in part, to resource constraints. 

Demonstrating the impact of the work of Volunteers has gained significant momentum over the last few years. The 

agency is strengthening its monitoring and evaluation (M&E) systems to improve Volunteer programs and better 

articulate the value of the Peace Corps to our overseas partners and the American public. Considerable progress in 

building an M&E culture was made in FY 2012, and several improvements are planned for future years. Through 

the Focus In/Train Up strategy, for example, Volunteers will be reporting on standard sector indicators beginning 

in FY 2013, and the results will be aggregated in summary reports on the activities of Volunteers worldwide. 

A new agencywide evaluation framework that will guide the agency’s evaluation work will be completed in FY 2013. 

The framework codifies the agency’s current best practices and adds new elements to set the direction for the 
30 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

future. The framework successfully connects the evaluation work being conducted in disparate offices throughout 

the agency into one coherent system with a clear delineation of the roles and responsibilities of both headquarters 

offices and overseas posts. Host Country Impact Studies—which provide impact information directly from host 

country counterparts and beneficiaries on previous Volunteer work—will continue to be a critical component 

of agency efforts to demonstrate impact. A new counterpart survey will be piloted in FY 2013 to directly collect 

viewpoints from the local partners with whom Volunteers work. Baseline data collection has also been included 

in the new country entry guidance.

These planned activities to strengthen M&E are supported by the agency’s existing structures for data-driven 

decision making. The agency holds quarterly performance review sessions to monitor progress on agency goals, 

identify opportunities for improvement, and share best practices. The Annual Volunteer Survey provides rich 

information on Volunteer satisfaction and perceptions, and the agency analyzes results to improve operations. 

The annual Country Portfolio Review also includes impact data and informs the countries where Volunteers 

serve. 

Redevelopment of Legacy Technologies

As the Peace Corps builds on its performance management culture, there has never been more demand for 

high-quality data to inform decision making. At the same time, the agency currently maintains several legacy 

applications to manage information at headquarters and overseas posts that do not fully meet the evolving needs 

of the Peace Corps. Notably, the agency does not have a centralized data warehouse to store and report on critical 

current and historical programmatic data, reducing its utility to key decision makers. Additionally, as a small 

federal agency, the Peace Corps does not always benefit from economies of scale in the procurement of major 

technologies, and new acquisitions take up a disproportionate share of the budget.

The maintenance of aging systems will be a challenge in the future, and the agency is working to modernize both 

its core systems and reporting applications. The agency is moving increasingly toward externally hosted solutions, 

common platforms for core systems, and open-source software to retire legacy systems and support the evolving 

data needs of the agency. The redesign and modernization of the Volunteer Reporting Tool is one major agency 

effort to modernize a core system. Work on the project commenced in FY 2012 and will be completed by FY 2014. 

The redesigned reporting tool will run on a common platform, provide centralized storage for Volunteer project 

data, and allow for more standardized reporting on Volunteer activities. These enhancements will save significant 

time in report preparation on the part of Volunteers and staff and will improve the accuracy of information on the 

activities of Volunteers.

Collaboration with Other Government Agencies and Strategic Partners

The Peace Corps collaborates with other U.S. government agencies and strategic partners to promote shared 

development efforts and enhance the impact of Volunteers. Notably, the agency has worked closely with the 

President’s Emergency Plan for AIDS Relief (PEPFAR), the U.S. Agency for International Development in 

support of Feed the Future, and various international nongovernmental organizations. Through these strategic 

partnerships, the Peace Corps leverages training and programmatic resources and Volunteers expand the reach 

of partners’ development efforts to the local level. As the development community continues to engage strategic 

partners to address difficult development challenges, the agency will continue to search out mutually beneficial 

relationships with a broad range of development actors. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 31

MANAGEMENT’S DISCUSSION AND ANALYSIS

Collaboration with strategic partners in development is a key opportunity for the agency moving forward—helping 

to leverage the taxpayers’ dollars to achieve the greatest impact. At the same time, maintaining the agency’s 

independence in shared development endeavors remains critical. While collaborating closely with others to 

achieve the Peace Corps mission, the agency will maintain its independence to ensure that its unique people-topeople approach to development flourishes.

Begin text box: Global Health Service Partnership: Boosting Training

 for Health Professionals in Host Countries

The Peace Corps, the President’s Emergency Plan for AIDS Relief (PEPFAR), and the Global Health 

Service Corps launched the Global Health Service Partnership, a public-private partnership to place 

nurses, physicians, and other health professionals as adjunct faculty in medical and nursing schools in 

host countries.

This partnership will build capacity in host country medical and nursing education programs to address 

health professional shortages. Under the new partnership, American medical professionals will serve 

one-year terms as Peace Corps Response Volunteers. Volunteers will primarily function as medical or 

nursing educators, working alongside local faculty counterparts to teach and transfer clinical skills. 

Volunteers will also participate in direct medical care in the process of educating and mentoring local 

students and practitioners.

The first Volunteers are expected to begin service in FY 2013. End text box.

Development of the FY 2015-2018 Strategic Plan

The development of the agency’s strategic plan for FY 2015-2018 represents a major opportunity to set the 

agency’s performance improvement agenda for the next several years. The development of the new plan 

commenced this year, and the agency will engage the Peace Corps community (headquarters and overseas staff, 

Volunteers, constituency groups, returned Volunteers, and partners), the White House, Congress, and the public 

at large in discussions over the agency’s future strategic direction. The new plan will fully comply with the GPRA 

Modernization Act of 2010 (GPRA-MA) and will be finalized in February 2014.

The Peace Corps is actively involved in a variety of forums to discuss implementation of GPRA-MA and share 

best practices, including the Performance Improvement Council and the Small Agency Council’s Performance 

Improvement Committee. The agency will continue to work closely with the Office of Management and Budget 

(OMB) and the broader performance management community to discuss how best to advance implementation of 

GPRA-MA.

Begin callout:To learn more about the Peace Corps, please visit our website: www.peacecorps.

gov. End callout.
32 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Analysis of Financial Statements

Overview of Financial Position

The financial statements reflect the agency’s efforts toward fulfillment of its mission to provide world peace and 

friendship. This summary provides the agency’s financial position and the result of its operations. Complete 

financial statements and notes are included in the Financial Section of this report.

Evidence of Peace Corps’ financial management capacity is shown by receipt of an unqualified (clean) audit 

opinion on the FY 2012 financial statements—the sixth consecutive year it has earned a clean audit opinion. 

The agency receives most of its funding from government funds administered by the U.S. Department of Treasury 

and appropriated by Congress. In FY 2012, the Congressional appropriation totaled $375 million; in FY 2011, it 

was $374.3 million. The relatively constant appropriated funding level between the two fiscal years has improved 

the execution stream despite the reduction from the $400 million appropriated funding in FY 2010. The 

Budgetary Resources were $453 million for FY 2012 and $452 million for FY 2011. Budgetary Resources consist 

of the Unobligated Balance of Available Appropriated Funds from prior fiscal years and the Spending Authority 

from Offsetting Collections (primarily the reimbursable work to be performed by the agency on behalf of other 

federal agencies such as U.S. Agency for International Development and its almost $15 million for the nation’s Feed 

the Future, Global Education, and other initiatives). 

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. Studies are underway, though, to 

assess the feasibility of more closely linking performance and budgeting if proven to be cost effective.

A photo of an Environment Volunteer working 

with her colleagues on a forestry project in 

Nicaragua.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 33

MANAGEMENT’S DISCUSSION AND ANALYSIS

To make the agency’s financial position more transparent, a summary of the major financial activities in FY 2012 

and FY 2011 is shown in the following table:

Summary of Financial Activities

(In Thousands)

FY 2012 FY 2011

Fund Balance with Treasury $ 180,689 $ 175,205

Accounts Receivable 2,545 1,408

Property, Plant and Equipment 35,176 43,888

Prepaid Volunteer Living Allowances 2,220 3,106

Other Assets 3,369 2,835

Total Assets $ 223,999 $ 226,442

Accounts Payable 12,103 10,028

Employee Benefits 139,531 133,121

Unfunded FECA Liability 30,558 30,737

Unfunded Annual Leave 9,415 9,136

Other Employment Related 10,422 18,359

Non-Entity Funds 55,739 53,904

Other Liabilities 1,249 1,555

Total Liabilities $ 259,017 $ 256,840

Unexpended Appropriations 103,531 97,955

Cumulative Results of Operations (138,549) (128,353)

Total Net Position $ (35,018) $ (30,398)

Total Liabilities and Net Position $ 223,999 $ 226,442

Net Cost of Operations $ 385,700 $ 390,260

Budgetary Resources $ 453,061 $ 451,679

Analysis of Financial Results

Assets. Assets are the amount of current and future economic benefits owned or managed by the Peace Corps to 

achieve its mission. As of September 30, 2012, the total assets were $224 million on the Balance Sheet. Eightyone percent of these assets were in the Fund Balance with Treasury and 16 percent of the assets were in Property, 

Plant, and Equipment (PP&E). The overall decrease of $2.4 million when compared to the FY 2011 total assets of 

$226.4 million was primarily due to changes in PP&E. 

PP&E decreased by $8.7 million from $43.9 million in FY 2011 to $35.2 million in FY 2012 due to an adjustment 

in Construction in Progress when the headquarters building renovation (begun in FY 2011) was completed and 

capitalized as Leasehold Improvements. Other PP&E changes included a $4.0 million decrease in the Net Book 

Value of other capitalized assets. Offsetting the $8.7 million PP&E decreases was a $5.5 million increase in the 

Fund Balance with Treasury due to a lower rate of cash paid out for costs incurred and a $1.8 million increase in 

the Non-Entity funds for Personal Services Contractor Separation costs.
34 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Agency assets by type are shown in the chart below: 

Fiscal Year 

2012 Assets by 

Type (in thousands):

A c c o u n t s 

R e c e i v a b l e 

$2,545 or 1 percent. Property, 

plant and equipment $35,176 or 

16 percent.

Fund balance 

with treasury 

$180,689 or 81%. 

Other $5,589 

or 2 percent. 

Other consistes 

of Prepaid volunteer living 

allowances of 

$2,220 or 1 percent and Other 

assets of $3,369 

or 1 percent.

Liabilities. Liabilities are the amounts owed by the Peace Corps. Total liabilities of $259 million were shown on 

the Balance Sheet as of September 30, 2012. This is an increase of $2.2 million from $256.8 million in FY 2011. The 

$6.4 million increase in Employee Benefits was due to Federal Employees Compensation Act (FECA) actuarial 

liability calculated by the Department of Labor and a $2.1 million increase in Accounts Payable. These increases 

were offset by a $7.9 million reduction in unfunded severance for Personal Services Contractors and lower payroll 

expenses and leave accrual due to reductions in the number of Volunteers.

Liabilities by type are shown in the chart below:

Employee 

Benefits

$139,531 

(54%)

Non-Entity 

Funds

$55,739 (21%)

Unfunded FECA 

Liability 

$30,558 (12%)

Other 

Employment 

Related

$10,422 (4%)

Accounts 

Payable

$12,103 (5%)

Unfunded Annual 

Leave $9,415 (4%)

Other 

Liabilities

$1,249 (0%)

FY 2012 Liabilities by Type

(In Thousands)

Fund Balance

with Treasury

$180,689

(81%)

Accounts Receivable

$2,545 (1%)

Property, 

Plant and 

Equipment

$35,176

(16%)

Other 

Assets

$3,369 (1%) Other

$5,589 (2%)

Prepaid 

Volunteer 

Living 

Allowances

$2,220 (1%)

FY 2012 Assets by Type

(In Thousands)

Fiscal Year 

2012 Liabilities by type (in 

thousands):

Accounts Payable $12,103 

or 5 percent. 

Employee Benefits $139,531 

or 54 percent. 

Unfunded Federal Employees 

compensation 

act liability 

$30,558 or 12 

percent. Unfunded 

annual leave 

$9,415 or 4 

percent. Other 

E mploy ment 

related $10,422 

or 4 percent. 

N o n - e n t i t y 

funds $55,739 

or 21 percent. 

Other liabilities $1,249 or 

less than 1 percent.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 35

MANAGEMENT’S DISCUSSION AND ANALYSIS

Net Position. Net Position consists of undelivered orders, unobligated balance of funding, and the Cumulative 

Results of Operations. The agency’s Net Position increased by $4.6 million from FY 2011 at $30.4 million to $35 

million in FY 2012. 

Net Cost – Results of Operations. The Net Cost of Operations decreased from $390.3 million in FY 2011 to 

$385.7 million in FY 2012. The $4.6 million decrease is primarily due to lower Volunteer support costs offset by 

an increase in revenues earned from reimbursable activity.

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 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.

A photo of aHealth Volunteer teaching 

an HIV/AIDS education seminar to a 

senior support group in Botswana.
36 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

Analysis of Systems, Controls, and Legal Compliance

Management Assurances

This section provides information on the Peace Corps’ compliance with the Federal Managers’ Financial Integrity 

Act of 1982 (Public Law 97-255) and OMB Circular A-123, Management’s Responsibility for Internal Control, and 

assesses the financial management systems strategy.

Federal Managers’ Financial Integrity Act

The Federal Managers’ Financial Integrity Act of 1982 (FMFIA) mandates that agencies establish internal 

control to provide reasonable assurance that the agency complies with applicable laws and regulations; safeguards 

assets (funds, property, and other assets) against waste, loss, unauthorized use, or misappropriation; and properly 

accounts for and records revenues and expenditures to permit the preparation of accounts and reliable financial 

and statistical reports and to maintain accountability over the assets. FMFIA requires agencies 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 Integrity Act requires the agency head to evaluate and report annually in an assurance statement 

on the adequacy of internal controls (Section 2) and on conformance of financial systems with governmentwide 

standards (Section 4) shown below in the FY 2012 Annual FMFIA Assurance Statement. 

Other Internal Control Guidance

OMB Circular A-123, introduced above, implements the FMFIA and further defines management’s responsibility 

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

and standards to follow in managing financial management systems. These internal control guidance documents 

joined by the Peace Corps Manual Section 784, Internal Control System, govern the internal control program for 

the agency.

Internal Control Program

The Peace Corps achieved its sixth consecutive unqualified (clean) audit opinion during the FY 2012 annual 

financial statement audit. No material weaknesses or instances of noncompliance with laws and regulations 

were identified. Internal controls are the organization, policies and procedures that help program and financial 

managers achieve results and safeguard the integrity of their programs. Peace Corps managers are responsible 

for designing and implementing effective internal controls in their areas. Monitoring the effectiveness of internal 

control should occur in the normal course of conducting business over each year. Department and office heads 

across the agency prepared assessments of risk earlier this fiscal year that did not identify any material weaknesses. 

However, the risk assessments identified weaknesses of less severity than material weaknesses, which will be 

monitored and managed within the agency. Department and office heads also prepared annual management 

assurance statements as of September 30, 2012, attesting to the adequacy of internal controls and, again, did not 

identify any material weaknesses. These assessments are also based on internal control activities including self 

assessments, senior leadership meetings, observation of daily operations, audits of financial statements, Inspector 

General audits, reports, reviews, investigations, and evaluations. The two significant deficiencies and audit 

recommendations from the FY 2011 financial statement audit were monitored through the agency’s corrective 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 37

MANAGEMENT’S DISCUSSION AND ANALYSIS

action plan and during periodic Senior Assessment Team meetings throughout the fiscal year. The Senior 

Assessment Team is led by the chief financial officer and includes members of agency top management.

Marking historical points, no new material weaknesses have been identified for the past seven years. Further, all 

material weaknesses previously reported to OMB and Congress were resolved during FY 2007. 

Financial Management Systems Strategy

The Peace Corps continues to maintain operational efficiencies in the agency’s globally deployed multi-currency 

financial system, Odyssey, through incremental enhancements and application extensions that increase labor 

efficiencies and performance and maintain data integrity. The software product upgrade to Odyssey will be 

completed by January 2013, further improving financial and budget management agencywide and providing 

enhanced technical support for the budgeting, projects, financials, procurement, cashiering, human resources 

and payroll processes handled by the system. The Odyssey upgrade is also necessary to prepare for the Treasury’s 

Governmentwide Treasury Account Symbol Adjusted Trial Balance System reporting requirements scheduled to 

begin in FY 2014. 

The agency’s property accountability system was deployed worldwide in late FY 2011. Due to continuing tracking 

and reporting property challenges, the agency is evaluating whether to integrate the existing system with the 

Odyssey Fixed Asset module or procure and implement an alternative property accountability system in FY 2013 

or FY 2014. 

A new personal services contractor application was completed in FY 2012 and worldwide deployment is planned 

in FY 2013 which allows posts to enter contractor data at the local level, automatically computing payroll elements 

and eliminating error-prone manual re-entry at headquarters. This application will allow online approval at 

headquarters, improving the efficiency and transparency of the contractor payment process. 

Further, the agency will be procuring and deploying an agencywide commercial time keeping system much like 

that of the U.S. Agency for International Development which will be integrated with Odyssey expanding and 

automating the agency’s ability to track, monitor, and capture the cost of capital projects. 

Finally, studies are currently underway to assess the feasibility of more closely linking performance and budgeting 

through cost allocation if proven to be cost effective. Accurate correlation of actual costs with applied overhead to 

the strategic goals and outputs remains unachievable without capturing significantly more granular direct costs 

and implementing indirect cost allocation models within the financial system for cost-stratification purposes.

The management assurance statement that follows is consistent with the FY 2012 audit report. 

Begin callout: Peace Corps Volunteers in Madagascar and Rwanda are working to reduce 

the impact of deforestation by introducing green charcoal into local communities. This 

environmentally safe method of charcoal production is a sustainable alternative to wood 

charcoal and can generate income for local families and organizations. Green charcoal 

briquettes are created using a combination of biomass materials such as agricultural waste, 

leaves, grass, and sawdust. End callout.
38 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

FY 2012 Annual FMFIA Assurance Statement

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

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

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

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

assurance for FY 2012 that its internal control over the effectiveness and efficiency of operations, 

financial reporting, and compliance with applicable laws and regulations was operating 

effectively and no material weaknesses were found in the design or operation of the internal 

controls.

The Peace Corps conducted its assessment of whether the financial management systems 

conform to governmentwide 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 2012.

Carolyn Hessler-Radelet, Acting Director

November 15, 2012

Joseph L. Hepp, Jr.

Chief Financial Officer

November 15, 2012
PERFORMANCE SECTION

A photo of a Community Economic Development Volunteer works on an environmental education project with youth in Senegal.
40 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

Introduction to Agency Performance

The performance section presents the agency’s progress on the five strategic goals, 14 performance goals, and 40 

performance indicators outlined in the agency’s FY 2012 annual performance plan. 

This is the fourth year of agency operations under the Peace Corps FY 2009-2014 strategic plan.

The development of the FY 2012 annual performance plan offered the agency an opportunity to assess agency 

performance during the first three years of operations under the strategic plan and recalibrate the performance 

plan to reflect evolving agency priorities and set more ambitious performance targets. The FY 2012 annual 

performance plan is the result of a highly participatory process through which the agency has reaffirmed 

its commitment to performance improvement. The strategic plan and performance plan can be found at 

www.peacecorps.gov/open.

This 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 measures 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 also 

included.

The FY 2012 annual performance plan includes several new and revised indicators. As a result, trend data that 

compares performance targets to results over the past five years are not available for all indicators. Prior year 

trend data are provided when available, and baseline data are offered in cases where prior indicator results are 

not available and data from other, similar measures exist. Trend information indicates improvement, maintaining 

performance, or declining performance from the previous year.

Performance Management

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

Corps’ deputy 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 and 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. Review sessions are chaired by the agency’s chief 

operating officer and facilitated by the performance improvement officer. Senior management from across the 

agency 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.

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

strategic and operational plans to ensure that their activities are aligned with and advance the agency’s strategic 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 41

PERFORMANCE SECTION

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

resource requirements of the IPBS plans. 

•	 Country Portfolio Review. Each year, the agency conducts a comprehensive review of active 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 2012 performance results are based on reliable and valid data that are complete as of the end 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, which 

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

indicator. Independent reviews of the performance data submitted by headquarters offices and posts ensure the 

data are complete and accurate. The major data sources are detailed below. 

Annual Volunteer Survey

The Annual Volunteer Survey (AVS) is a voluntary survey that provides direct feedback from the Volunteers 

regarding agency activities. In FY 2012, 87 percent of Volunteers completed and submitted the AVS—the highest 

response rate in the history of the survey. The consistently high response rate from Volunteers ensures that the 

responses obtained reliably represent all Volunteers. 

The demographic profile of the survey respondents is compared to all Volunteers in service to confirm that 

the respondents are representative of the Volunteer population as a whole. In FY 2012, the AVS respondents 

were appropriately representative of the Volunteers. Responses to AVS questions are entered by the Volunteers 

themselves and housed in an external, electronic survey database. Faulty data are cleaned prior to analysis and 

constitute only a small percentage of the overall responses. Analyzed data are used to inform agency management 

about the Volunteers’ perspectives on key issues. The high response rate from Volunteers and the verification and 

validation measures ensure the high level of AVS data accuracy needed for its intended use.

The AVS reflects the viewpoint of Volunteers and can often be influenced by external events. The agency carefully 

analyzes any variation in AVS results; however, nominal percentage point movements may not be meaningful or 

significant. In analyzing AVS results, the agency is mindful to look at 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 members 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 is appropriately transferred between different applications. The required level of 
42 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

accuracy to provide current and historical information about programs and Volunteers is met through database 

rules and business processes. Where data limitations do exist, largely due to data entry compliance in isolated 

systems, they are noted in the appropriate indicator section. 

Overseas Posts

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

Country directors or program managers from all overseas posts responded to the survey in FY 2012, thus providing 

valid representative 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. The survey gathers the activities of overseas posts. As all posts responded to the survey in 

FY 2012 and high data quality was established, the required level of accuracy was met.

Photo of an Education Volunteer teaching students 

healthy habits through outdoor exercise in Togo.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 43

PERFORMANCE SECTION

Annual Performance Results

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

communities to meet their skill needs

Performance Management Framework

The Peace Corps facilitates Volunteers’ capacity-building efforts by partnering with host country communities 

and organizations to develop programs that respond to local needs, training Volunteers in the skills they need to 

be successful, and maintaining a focus on skills transfer to local people. Implementing the Focus In/Train Up 

strategy—an agencywide effort to focus on highly effective interventions and provide Volunteers with world-class 

training—was a major priority this year to improve performance on this goal.

The agency was successful in enhancing local capacity in FY 2012. Seven of 11 performance targets were met, and 

eight indicators either improved or maintained the level of performance from last year. 

Begin callout: Through the President’s Emergency Plan for AIDS Relief 

(PEPFAR), implementing agencies—including the U.S. Agency for International 

Development, the Centers for Disease Control and Prevention, the Department 

of Defense, and the Peace Corps—are working closely to reach millions across 

the globe. Secretary of State Hillary Rodham Clinton announced the United 

States goal of creating an AIDS-free generation, which President Barack Obama 

echoed on World AIDS Day 2011 with his commitment to expand treatment to 6 

million people globally by the end of 2013. End callout.

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
44 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

Performance Goal Results 

Performance Goals Performance Indicators FY 2012 

Target

FY 2012 

Result

Target 

Met

Trend

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

38% 69% Yes Improving

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% 83% No Declining

1.1.1.c. Percentage of projected 

length of service actually served by 

Volunteers

85% 88% Yes Improving

1.1.1.d. Percentage of Volunteers 

who report their satisfaction with 

site selection and preparation as 

adequate or better

76% 72% No Improving

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

86% 89% Yes Improving

1.2.1.b. Percentage of Volunteers who 

report training as adequate or better 

in preparing them technically for 

service

82% 82% Yes Improving

1.2.1.c. Percentage of Volunteers who 

report training as adequate or better 

in preparing them to work with their 

counterparts/community partners

80% 82% Yes Improving

1.2.1.d. Percentage of posts that 

provide monitoring and evaluation 

training to their Volunteers

85% 91% Yes Maintaining

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

85% 87% Yes Improving

1.3.1.b. Percentage of projects 

documenting measurable impact in 

building the capacity of host country 

nationals

85% 83% No Declining

1.3.1.c. Percentage of partner 

organizations at post that report 

their assigned Volunteer fulfilled 

their requested need for technical 

assistance

70% 63% No Declining
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 45

PERFORMANCE SECTION

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 2012 

Target

FY 2012 

Result

Target Met Trend

38% 69% Yes Improving

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. In FY 2012, the agency held PAC meetings for 130 out of 188 projects 

(69 percent). This measure ensures local partners are continuously consulted throughout the cycle of a project—

from design to implementation to evaluation. The use of PACs was identified as a best practice by certain posts and 

by including this indicator in the annual performance plan for the first time, the agency is now actively promoting 

their use worldwide.

In FY 2012, improvement was achieved by providing additional resources to posts to hold PAC meetings, 

particularly in the Africa region. Additionally, the Inter-America and Pacific region distributed guidance to posts 

on how to appropriately budget for PAC meetings. 

While all projects were developed in collaboration with host country stakeholders, the continuous monitoring and 

evaluation of existing projects by host country partners through PAC meetings did not occur for all projects. Several 

posts that did not conduct PAC meetings in FY 2012 will be hosting them next year after full implementation of 

Focus In/Train Up. 

Strengthening Future Performance: The agency will continue to provide encouragement and guidance to all 

overseas posts and share best practices among countries for operating PACs. Additionally, this is a new indicator 

and performance in FY 2012 was higher than expected. The target for FY 2013 will be five percentage points higher 

than the average of the FY 2011 and FY 2012 results to encourage continued high performance. 

Data Source: Overseas posts data call

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

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

Target 38% 56%

Result 33% 69%

0%

20%

40%

60%

80%

100%

1.1.1.a. Percentage of project managers who meet 

with their host country Project Advisory 

Committees

Target Result

Begin callout. The agency’s first global strategic partnership with a corporation 

was announced in September 2012. The Peace Corps and Mondelez 

(formerly Kraft Foods) will promote sustainable agriculture and community 

development. End callout.
46 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

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 Trend

95% 83% No Declining

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 advances an 

ongoing dialogue with the host country on how best to 

increase project effectiveness. 

Discussion of Result: The target was not met. Out of 65 posts, 54 posts provided annual reports to their host 

country partners for all of their projects, a reduction from FY 2011. The indicator target was increased in FY 2012 

to strengthen the improvements made last year and expand the reports to include all projects; however, the 

expected progress was not realized.

Performance on this indicator in the Africa region highlights the challenges of producing annual reports. In the 

Africa region, 68 percent of posts provided annual reports to their host country partners, compared to 83 percent 

worldwide. For posts where more than one language is spoken, common in Africa, translation is often difficult and 

expensive, a contributing factor in the feasibility of developing annual reports. Posts in Africa also spent twice as 

many hours creating annual reports compared to the other regions.

When posts are able to overcome these challenges, they use the annual reports to share their successes, develop 

appropriate expectations, and build a culture of transparency and collaboration with local partners. 

Strengthening Future Performance: The agency will share best practices, including the use of low-cost solutions, 

across posts to improve how results are reported to local stakeholders. The agency will also develop a standardized 

template for posts’ annual reports that ensures that all critical elements are included while providing flexibility to 

meet the unique needs of each post. 

Data Source: Overseas posts data call

Indicator 1.1.1.c: Percentage of projected length of service actually served by Volunteers

FY 2012 

Target

FY 2012 

Result

Target Met Trend

85% 88% Yes Improving

Rationale: Projects are designed to 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 the field for a sufficient 

amount of time to meet program goals. 

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

and partners for all of their projects

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

Target 95% 95%

Result 87% 83%

Baseline 62% 53% 70%

0%

20%

40%

60%

80%

100%

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

Target Result Baseline
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 47

PERFORMANCE SECTION

Discussion of Result: The target was met. This is the 

first year the agency has set a performance target for this 

indicator. Offering one perspective on “early terminations” 

of Volunteers serving in the field, this indicator replaces the 

“average length of service” measure included in previous 

performance plans to reduce the effect of outliers in the data 

and provide an indicator that is more reflective of agency 

operations.

The result in FY 2012 is consistent with the overall downward 

trend of early terminations over the last several years—a 

positive development for the agency.

The agency works to reduce the number of Volunteers who leave service early. The unexpected departure of a 

Volunteer can have a negative effect on the Volunteer’s project and the goals established in collaboration with 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 

in their service.

Strengthening Future Performance: The agency will continue to analyze and disseminate early termination 

measures to agency decision makers in order to identify opportunities for improvement in individual regions, 

posts, and programs.

Data Source: Peace Corps Database Management System 

Indicator 1.1.1.d: Percentage of Volunteers who report their satisfaction with site selection and 

preparation as adequate or better

FY 2012 

Target

FY 2012 

Result

Target Met Trend

76% 72% No Improving

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 not met. The decline in Volunteers’ satisfaction with site selection and 

preparation from FY 2008 to FY 2010 resulted in the agency including the measure as an indicator in the FY 2012 

annual performance plan. This is evidence of both the importance of improving site selection and the agency’s use 

of performance measurement to drive performance improvement. While the target was not met in FY 2012, the 

result is an improvement over the previous year.

1.1.1.c. Percentage of projected length of service actually served by Volunteers

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

Target 85% 87%

Result 82% 84% 85% 84% 88%

50%

60%

70%

80%

90%

100%

1.1.1.c. Percentage of projected length of service 

actually served by Volunteers

Target Result

1.1.1.d. Percentage of Volunteers who report their satisfaction with site selection and prepara

adequate or better

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

Target 76% 73%

Result 79% 73% 72% 71% 72%

50%

60%

70%

80%

90%

100%

1.1.1.d. Percentage of Volunteers who report their 

satisfaction with site selection and preparation as 

adequate or better

Target Result
48 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

Ensuring the appropriate selection and preparation of Volunteer sites has been a challenge in the agency for a 

number of years. Constraints have included inadequate staffing levels, inconsistent application of site selection 

and preparation protocols, and host country restrictions on 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. 

Activities in FY 2012 contributed to effective site selection and preparation and laid the groundwork for 

performance improvement in the future. The Inter-America and Pacific region consolidated and disseminated 

guidance on site selection and preparation, and the agency will provide worldwide guidance in FY 2013. 

Realizing the lack of information on the site selection process often contributes to poor expectations on the part 

of Volunteers, some posts in Africa shared the site selection and preparation process with Volunteers. Other 

posts are leveraging their Volunteer leaders to provide support to Volunteers through site monitoring.

Strengthening Future Performance: The agency will collect data on how the new site selection and preparation 

guidance is utilized in order to identify areas for improvement. An additional area of inquiry will be the relationship 

between site selection and preparation and Volunteer-to-staff ratios. Finally, the aggressive implementation of 

critical recommendations from Peace Corps safety and security officers, several of which relate to posts’ adherence 

to site selection criteria, will also improve future performance. 

Data Source: Annual Volunteer Survey

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 2012 

Target

FY 2012 

Result

Target Met Trend

86% 89% Yes Improving

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. The Peace Corps provides language instruction for Volunteers in 181 

languages through local language instructors. While some Volunteers may not be required to learn a new language, 

others learn multiple languages during their service. 

In FY 2012, the agency improved the quality of its language training by building on the skills of language 

instructors through training-of-trainers sessions and increasing the number of language proficiency index 

certification workshops provided to instructors. The agency held 22 workshops in FY 2012, compared to 10-15 

provided in previous years. 

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

standards

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

Target 85% 85% 85% 86% 88%

Result 93% 87% 85% 89%

75%

80%

85%

90%

95%

100%

1.2.1.a. Percentage of Volunteers who meet local 

language requirements for service per post testing 

standards

Target Result
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 49

PERFORMANCE SECTION

Challenges to improving performance on this indicator include the high turnover of certified language instructors 

and data-collection issues. Language instructors are often only contracted during Volunteers’ three-month preservice training, contributing to high turnover as instructors secure other full-time work. High turnover is an 

issue particularly in the Africa region, where the largest number of languages is taught. 

The response rate for language scores has also been low; in FY 2012, only 83 percent of Volunteers who were tested 

had their language scores recorded in the data-collection tool. All Volunteers who complete language training 

are tested for language ability; in many cases, language scores exist on paper but have not yet been transferred 

into the agency’s database. The low response rate can be improved through training and follow-up with language 

instructors. This year, the agency started the process of contacting posts to enter outstanding data and putting 

training in place to ensure all language scores are entered into the database. 

Strengthening Future Performance: The agency is exploring options to improve language-instructor retention. 

The Africa region, for example, is reviewing how to move training classes and pre-service training dates to provide 

longer-term employment for language instructors. To improve data collection, the agency will develop and train 

language instructors on the standard operating procedures for when and how to enter language test data into the 

agency’s database.

Data Source: Peace Corps Enterprise Database

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

technically for service

FY 2012 

Target

FY 2012 

Result

Target Met Trend

82% 82% Yes Improving

Rationale: The agency selects Volunteers with the 

maturity, commitment, resilience, skills, and experience 

necessary to be successful and provides technical 

training to prepare Volunteers for local, project-specific 

work. Volunteers’ perceptions of how well their technical 

training has prepared them for service are an important 

indicator of the effectiveness of that training. Volunteers 

who have been adequately trained in technical areas have the competencies necessary to address host country 

needs. 

Discussion of Result: The target was met. This year, the agency strengthened its technical training through 

the continued implementation of the Focus In/Train Up strategy. The agency completed new technical training 

packages for the Education, Community Economic Development, and Youth in Development sectors and is 

aggressively developing training materials for the remaining sectors and technical areas.

The agency also explored alternative training structures to improve delivery and respond to increased demands 

for training. Examples include the following:

1.2.1.b. Percentage of Volunteers who report training as adequate or better in preparing them 

technically for service

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

Target 70% 72% 75% 82% 84%

Result 78% 80% 80% 79% 82%

50%

60%

70%

80%

90%

100%

1.2.1.b. Percentage of Volunteers who report 

training as adequate or better in preparing them 

technically for service

Target Result
50 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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•	 Providing pre-departure online training on global health and HIV/AIDS issues to individuals selected for 

service in the health sector through the agency’s partnership with the President’s Emergency Plan for AIDS 

Relief (PEPFAR). 

•	 Testing a two-phase pre-service training model in the Africa region. During the first phase, Volunteers go 

through cross-cultural and language training to learn critical community-integration skills. After building an 

understanding of local development issues at their eventual work sites, Volunteers return for technical training 

during the second phase. The new model is expected to better prepare Volunteers technically for service as they 

will be learning technical skills in the context of their individual work sites. 

Strengthening Future Performance: As the agency fully implements Focus In/Train Up, standard training 

packages will be developed for all sectors. Additionally, the agency will continue to innovate by conducting pilot 

studies of alternative training structures.

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 2012 

Target

FY 2012 

Result

Target Met Trend

80% 82% Yes Improving

Rationale: Volunteers build local capacity by working 

closely with local counterparts and partners. Volunteers’ 

perceptions on the adequacy of their counterpart training 

are helpful in assessing the effectiveness of that training. 

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

this indicator was adjusted upward this year to encourage 

performance improvement and the response was positive.

Counterparts and community partners connect Volunteers to local communities, and Volunteers must maintain 

these relationships to ensure the sustainability of their work. The agency trains Volunteers on how to work 

successfully with local counterparts and partners with a focus on managing cultural differences. 

For example, the agency held a training session in FY 2012, Understanding My Work Partner, for program managers 

to build staff skills in supporting Volunteers’ efforts to form positive work relationships with their counterparts.

Strengthening Future Performance: The full implementation of Focus In/Train Up will improve Volunteer 

training, including the new training module on working with counterparts.

Data Source: Annual Volunteer Survey

1.2.1.c. Percentage of Volunteers who report training as adequate or better in preparing them 

with their counterparts/community partners

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

Target 60% 62% 65% 80% 82%

Result 74% 79% 79% 78% 82%

50%

60%

70%

80%

90%

100%

1.2.1.c. Percentage of Volunteers who report 

training as adequate or better in preparing them to 

work with their counterparts/community partners

Target Result
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PERFORMANCE SECTION

Indicator 1.2.1.d: Percentage of posts that provide monitoring and evaluation training to their Volunteers

FY 2012 

Target

FY 2012 

Result

Target Met Trend

85% 91% Yes Maintaining

Rationale: When Volunteers are adequately trained in 

monitoring and evaluation, 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. In FY 2012, 

59 posts (91 percent) provided monitoring and evaluation (M&E) training to their Volunteers. Achievement in 

providing M&E training to Volunteers was supported by the development of standard sector indicators through 

the Focus In/Train Up strategy.

Posts offered six standardized M&E sessions, developed through Focus In/Train Up: 

•	 Accomplishing Peace Corps’ First Goal

•	 Why we Monitor and Evaluate

•	 How to Use Sector M&E Tools

•	 How we Report our Work

•	 How we Share our Progress

•	 How we Analyze Data 

In a survey of posts, the most popular session was Accomplishing Peace Corps’ First Goal (74 percent of posts), 

followed by Why we Monitor and Evaluate (72 percent). 

The agency also offered training outside of the Focus In/Train Up strategy. Several posts (83 percent) offered 

Using Participatory Analysis for Community Action. Posts offered up to seven M&E sessions, with an average of 

three per post. 

Strengthening Future Performance: The standardized M&E training package was adopted by posts at a higher 

than anticipated level at this early stage of Focus In/Train Up implementation, thereby exceeding the target. The 

agency will raise the target next year. 

Data Source: Overseas posts data call

1.2.1.d. Percentage of posts that provide monitoring and evaluation training to their Voluntee

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

Target 85% 90%

Result 83% 91% 91%

75%

80%

85%

90%

95%

100%

1.2.1.d. Percentage of posts that provide 

monitoring and evaluation training to their 

Volunteers

Target Result

Begin callout: Peace Corps Volunteers may be able to defer Stafford, Perkins, 

Federal Direct, and consolidation loans and may qualify to cancel 15 percent of 

each Perkins Loan per years of service, up to 70 percent total. End callout.
52 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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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 2012 

Target

FY 2012 

Result

Target Met Trend

85% 87% Yes Improving

Rationale: Volunteers build local capacity by transferring 

skills to host country individuals and organizations. 

Volunteers’ perceptions of their work indicate the 

effectiveness of their capacity-building efforts.

Discussion of Result: The target was met. The result in 

FY 2012 is consistent with Volunteers’ perceptions since 

2008, suggesting that Volunteers continue to feel that they are prepared for and placed in environments where 

they can effectively transfer skills to local partners.

The Annual Volunteer Survey is the data source for this indicator; data from other sources provide additional 

context regarding the success of Volunteers’ skill transfer activities. 

For example, Host Country Impact Studies collect and analyze direct impact information from host country 

counterparts, beneficiaries, and host families, providing critical insights into Volunteers’ success in transferring 

skills. In the three studies completed in FY 2012 (El Salvador, Ghana, and Paraguay), 93 percent of host country 

national respondents said the training provided by Volunteers enhanced their skills. When asked about the training 

held by the Volunteer, one counterpart in El Salvador remarked, “The training helped a lot because it helped me to 

do my work better. My students respect me now, not because I am assistant principal, but because I am a leader.” 

Information from Volunteers on their activities provides another direct measure of capacity building. However, 

gathering activity and outcome information directly from Volunteers remains difficult. Using the Volunteer 

Reporting Tool, Volunteers report their progress against project goals and objectives. But data quality and 

accessibility issues resulting from inconsistent use and a decentralized data infrastructure have prevented the 

agency from fully collecting and analyzing Volunteer work through the reporting tool. Improvements to the 

reporting tool began in FY 2012 and are scheduled to go into effect in FY 2014.

Strengthening Future Performance: In FY 2012, the agency began the Volunteer Reporting Tool redesign 

project to improve the reporting interface, standardize reporting methods, and improve accessibility to Volunteer 

activity and outcome data. When the redesign project is complete and data quality improves, future performance 

plans can include goals and indicators directly related to Volunteer activities and outcomes.

Data Source: Annual Volunteer Survey

1.3.1.a Percentage of Volunteers who report their primary project work transferred skills to ho

individuals and organizations adequately or better

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

Target 70% 72% 75% 85% 87%

Result 84% 88% 85% 86% 87%

50%

60%

70%

80%

90%

100%

1.3.1.a Percentage of Volunteers who report their 

primary project work transferred skills to host 

country individuals and organizations adequately 

or better

Target Result
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PERFORMANCE SECTION

Indicator 1.3.1.b: Percentage of projects documenting measurable impact in building the capacity of host 

country nationals

FY 2012 

Target

FY 2012 

Result

Target Met Trend

85% 83% No Declining

Rationale: The use of multiple sources, including host 

country beneficiaries, to verify the impact of Volunteers’ 

capacity-building efforts will give posts a better 

understanding of the results of Volunteer activity. As a 

result, project managers can replicate successes and address 

challenges in skill transfer. 

Discussion of Result: The target was not met. This indicator was strengthened in FY 2012 to include the use of 

multiple sources in documenting the impact of capacity building—moving beyond the collection of data to a more 

rigorous analysis of Volunteers’ impact. 

Of the 188 Peace Corps projects operational in FY 2012, the agency was able to document the impact of Volunteers’ 

capacity-building efforts through multiple sources in 156 projects (83 percent). The Volunteer Reporting Tool was 

the most often utilized source for collecting data on the impact of Volunteers’ activities (82 percent), followed by 

Project Advisory Committees (77 percent), and site visits (55 percent). In many cases, posts used planned, routine 

visits with counterparts, beneficiaries, and partners to collect data on Volunteer impact.

Posts noted several challenges in demonstrating the impact of Volunteers in FY 2012, including limited datacollection tools, minimal M&E capacity on the part of staff and Volunteers, the lack of baseline data, and limited 

staff time.

The rollout of standard M&E training for Volunteers will build their capacity in this area. Staff acquired skills 

through M&E training provided by the agency in FY 2012. Ideally, a larger investment at posts, such as hiring 

dedicated M&E staff members regionally or at each post, could be made to fully institutionalize M&E into Peace 

Corps projects. However, this is unlikely in the near term due to resource constraints. Instead, the agency relies on 

building Volunteer and staff skills through M&E training, improving data-collection tools, and exploring baseline 

data collection to improve performance on this indicator. 

The lack of baseline data is 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. In FY 2012, baseline data collection was included in the new country entry guide to make baseline data 

collection a standard operating procedure when the agency enters new countries.

Strengthening Future Performance: Improvements to the Volunteer Reporting Tool, monitoring and evaluation 

training for Volunteers and staff, and full implementation of standard indicators through Focus In/Train Up will 

enhance the agency’s capacity to collect and analyze information on the impact of Volunteers. The agency will also 

1.3.1.b. Percentage of projects documenting measurable impact in building the capacity of ho

nationals

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

Target 85% 86%

Result 97% 83%

Baseline 86% 91% 85%

50%

60%

70%

80%

90%

100%

1.3.1.b. Percentage of projects documenting 

measurable impact in building the capacity of host 

country nationals

Target Result Baseline
54 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

begin the collection of baseline data when feasible. These efforts will be strengthened through the development of 

an agencywide evaluation framework.

Data Source: Overseas posts data call

Indicator 1.3.1.c: Percentage of partner organizations at post that report their assigned Volunteer 

fulfilled their requested need for technical assistance

FY 2012 

Target

FY 2012 

Result

Target Met Trend

70% 63% No Declining

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 over 4,000 organizations in FY 2012, and 

63 percent reported their assigned Volunteer fulfilled the 

requested need for technical assistance—a significant drop 

from last year. Eighteen posts that reported on this indicator last year did not provide information this year. 

Several of these posts noted that information is collected informally and that storage of the data is limited and 

paper-based. 

Posts have consistently reported difficulties with collecting and storing information gathered from partner 

organizations and local beneficiaries. The agency does not currently utilize a centralized database for 

collecting and storing feedback from counterparts. Instead, posts develop their own, often paper-based, 

solutions, including: site visit forms, surveys, and rating tools. As Volunteers often work with counterparts in 

remote areas of the host country with limited access to phone and Internet, posts typically collect data for this 

indicator during routine interactions with partner organizations, including site visits (66 percent), training 

events (42 percent), and Project Advisory Committees (31 percent).

Information collected from beneficiaries remains the most direct measure of the impact of Volunteers. While 

data-collection challenges exist, the agency continues to search for additional opportunities to collect impact 

information directly from beneficiaries, including fielding additional Host Country Impact Studies and 

developing a counterpart survey.

Strengthening Future Performance: The agency is currently developing a methodology and data-collection 

tool for surveying local counterparts that will be piloted in FY 2013. When operational, the counterpart survey 

will include a standardized set of questions to ask local partners, producing rich and comparable information on 

the impact of Volunteers. The agency is also planning to include a feature in the overseas posts database that will 

enable posts to collect and store information from local partners.

Data Source: Overseas posts data call

1.3.1.c. Percentage of partner organizations at post that report their assigned Volunteer fulfill

requested need for technical assistance

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

Target 50% 60% 70% 70% 75%

Result 82% 52% 72% 82% 63%

0%

20%

40%

60%

80%

100%

1.3.1.c. Percentage of partner organizations at post 

that report their assigned Volunteer fulfilled their 

requested need for technical assistance

Target Result
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PERFORMANCE SECTION

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

individuals, organizations, and communities served by Volunteers 

Performance Management Framework

Volunteers promote a better understanding of Americans by becoming an integral part of the communities where 

they serve—forging long-lasting friendships based on mutual respect and working collaboratively to accomplish 

the goals of the local community. 

Information from the Host Country Impact Studies suggests that Volunteers were successful in promoting a better 

understanding of Americans in FY 2012. This year, two of three performance targets were met, and all indicators 

improved or maintained performance from last year. The indicator measuring results from the Host Country 

Impact Studies (2.1.1.c) was monitored; sufficient Host Country Impact Studies were not conducted in FY 2012 to 

generalize the results to agency efforts worldwide. 

Performance Goal Results

Performance 

Goal

Performance Indicators FY 2012 

Target

FY 2012 

Result

Target 

Met

Trend

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% Yes Improving

2.1.1.b. Percentage of posts conducting 

supervisory and counterpart training on 

working effectively with Volunteers

95% 99% Yes Maintaining

2.1.1.c. Percentage of host country nationals 

who report positive opinions of Americans 

through their interactions with Volunteers

Monitor 87% N/A N/A

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

72% 68% No Improving

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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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 2012 

Target

FY 2012 

Result

Target Met Trend

90% 93% Yes Improving

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. 

Discussion of Result: The target was met. The agency works to maintain performance at the 90 percent level or 

better. This allows the agency to focus its resources on improving training where it is most needed, rather than in 

making modest improvements to an already high-performing area.

This year, the agency continued training Volunteers on managing cultural differences and in the Annual Volunteer 

Survey, Volunteers responded that Managing Cultural Differences was one of the most helpful training sessions 

provided by the Peace Corps. The Inter-America and Pacific region also established staff positions dedicated to 

Volunteer support, including providing guidance on living and working in other cultures.

Strengthening Future Performance: The agency will continue to provide Volunteers with standardized crosscultural training sessions to prepare them to appropriately manage cultural differences in their communities. 

Cross-cultural training will also be integrated into Volunteers’ technical training. The success of these trainings 

will continue to be built upon the agency’s ongoing efforts to recruit and select individuals who have the necessary 

cross-cultural agility to be successful during service.

Data Source: Annual Volunteer Survey

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

effectively with Volunteers

FY 2012 

Target

FY 2012 

Result

Target Met Trend

95% 99% Yes Maintaining

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

understand American culture and the 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. 

2.1.1.a. Percentage of Volunteers who report their training prepared them to manage cultura

differences during service adequately or better

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

Target 91% 92% 93% 90% 90%

Result 91% 92% 91% 90% 93%

75%

80%

85%

90%

95%

100%

2.1.1.a. Percentage of Volunteers who report their 

training prepared them to manage cultural 

differences during service adequately or better

Target Result
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PERFORMANCE SECTION

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

offered counterpart trainings in FY 2012. These trainings 

help build relationships by providing both Volunteers 

and counterparts with strategies for working effectively 

together. The counterpart training complements the 

sessions provided to Volunteers on working effectively with 

their counterparts and community partners (discussed in 

indicator 1.2.1.c).

Counterpart training participants reported several benefits 

of the sessions held in FY 2012 to posts. Participants learned 

about the cultural similarities and differences between 

themselves and Volunteers. This learning not only helped counterparts identify ways to effectively interact, 

support, and work with Volunteers, but it also enhanced their understanding of Americans. A participant in Belize 

noted, “I have had previous experience with Americans, but insights into American culture have been gained. This 

leads to deepened appreciation.”

Counterpart training sessions in FY 2012 also helped to set appropriate expectations for counterparts about 

Volunteers and the work that counterparts and Volunteers would undertake together. These sessions were 

focused on detailing the Peace Corps’ approach to development, reviewing project plans, and defining roles and 

responsibilities. The post in Burkina Faso asked counterparts to identify their expectations of Volunteers during 

one of the counterpart sessions. Staff discussed the types of work Volunteers typically do, helping to clarify the 

roles of Volunteers and counterparts. In the Republic of Georgia, Volunteers and counterparts delivered training 

sessions together, building their working relationship.

Strengthening Future Performance: The agency will share best practices for facilitating counterpart training 

with all posts. The counterpart survey discussed in indicator 1.3.1.c will provide data directly from counterparts 

on a number of topics, including the effectiveness of counterpart training. 

Data Source: Overseas posts data call 

Indicator 2.1.1.c: Percentage of host country nationals who report positive opinions of Americans 

through their interactions with Volunteers

FY 2012 

Target

FY 2012 

Result

Monitor 87%

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: Three Host Country Impact Studies were completed in FY 2012: the youth development 

program in El Salvador, the rural health and sanitation program in Paraguay, and the education program in 

Ghana. In total, over 400 host country nationals were interviewed. 

2.1.1.b. Percentage of posts conducting supervisory and counterpart training on working effec

Volunteers

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

Target 95% 95% 95% 95% 95%

Result 98% 100% 98% 99% 99%

75%

80%

85%

90%

95%

100%

2.1.1.b. Percentage of posts conducting supervisory 

and counterpart training on working effectively 

with Volunteers

Target Result
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Results from the FY 2012 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. After hosting a Volunteer in her home, one individual in Paraguay remarked, “I had no 

knowledge of Americans, but now I know something. They are good people and like to help others, regardless of 

social class.”

Study participants noted several Volunteer characteristics as factors in forming positive opinions of Americans, 

such as adaptability, a strong work ethic, and the willingness to learn the local language and live within their 

communities. A beneficiary in Ghana noted, “The interpersonal relations were perfect. I went out with one 

[Volunteer] to eat local food; he had become a local guy mixing freely with everyone to my delight and surprise.” 

Host Country Impact Studies are invaluable, 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 in other development organizations. However, 

due to resource constraints, only a few studies can be completed each year. Consequently, results cannot be 

generalized to agency efforts worldwide, and targets are not set for this indicator. However, results are monitored 

and the insights gathered from the studies help to inform management decisions.

Since 2008, 24 studies have been completed. Published studies, as well as short summaries, can be found at 

www.peacecorps.gov/open/evaluations. The agency plans to publish all completed studies in FY 2013. 

Strengthening Future Performance: In FY 2013, the agency plans to conduct a meta-analysis of completed Host 

Country Impact Studies to aggregate results across regions and sectors. In addition, one Host Country Impact 

Study is being planned in Ethiopia in FY 2013 and other studies will be conducted if resources are made available. 

An increase in the number of Host Country Impact Studies would provide additional evidence and allow for greater 

insight into the impact of Volunteers in building capacity and promoting a better understanding of Americans. 

Data Source: Host Country Impact Studies

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 2012 

Target

FY 2012 

Result

Target Met Trend

72% 68% No Improving

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. This 

indicator was modified in FY 2012 to include Volunteers’ 

perceptions of the impact of both their activities and interactions. Previous indicators only measured work and did 

not consider the effect of Volunteers’ daily interactions with local people. 

2.1.1.d. Percentage of Volunteers who report their activities and interactions help promote a b

understanding of Americans on the part of the peoples served

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

Target 72% 68%

Result 65% 68%

Baseline 75% 74% 68%

50%

60%

70%

80%

90%

100%

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

Target Result Baseline
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PERFORMANCE SECTION

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 beneficiaries themselves. As reported in indicator 2.1.1.c, 

87 percent of host country nationals reported positive opinions of Americans through their interactions with 

Volunteers. However, only 68 percent of Volunteers reported they believe they promoted a better understanding 

of Americans. 

The reason for this discrepancy is currently unknown but it may be due to the latent nature of outcomes and impacts 

which are not always fully evident until after Volunteers leave their communities. The agency is reaching out to 

program managers and Volunteers to determine what opportunities for improvement exist. The post in Togo, for 

example, is planning to use this data to discuss with Volunteers why the gap exists between their perceptions and 

those of the people with whom they live and work. 

Strengthening Future Performance: Information gathered from program managers and Volunteers will inform 

how the agency moves forward to ensure Volunteers have a more accurate understanding of their impact. In 

addition, completion of a new monitoring and evaluation training session through Focus In/Train Up and new 

standard indicators are intended to provide Volunteers with the skills required to better recognize, assess, and 

report on impact. 

Data Source: Annual Volunteer Survey

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

and returned Peace Corps Volunteers to help promote a better understanding of other peoples 

on the part of Americans

Performance Management Framework

During and after their term of service, Volunteers share their unique experiences with family, friends, and the 

American public to increase Americans’ awareness of other cultures. The agency manages programs and hosts 

events through various media to facilitate Volunteers’ and returned Volunteers’ efforts to promote a better 

understanding of host country individuals, peoples, and cultures.

In FY 2012, three of five performance targets were met, and two indicators either improved or maintained the 

same level of performance from last year. In an effort to improve programs to increase Americans’ awareness of 

Strategy: Increase Americans’ awareness of other peoples and cultures

•	

•	

•	 •	

•	

Activities Outcomes Impact
60 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

other cultures, the agency initiated the development of a comprehensive Third Goal strategy this year, including 

the creation of a new Office of Third Goal and Returned Volunteer Services. Performance is expected to improve 

as the Third Goal strategy is fully developed and implemented. 

Performance Goal Results

Performance Goals Performance Indicators FY 2012 

Target

FY 2012 

Result

Target 

Met

Trend

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

40% 15% No Declining

3.1.1.b. Number of individuals and 

organizations supporting the Peace 

Corps Partnership Program

10,000 13,892 Yes Improving

3.1.1.c. Percentage of Volunteers 

who report sharing their 

experiences with family, friends, 

and/or the American public

98% 99% Yes Maintaining

3.1.2: Increase 

returned Peace 

Corps Volunteers’ 

cultural outreach to 

the American public 

through Peace Corps 

programs

3.1.2.a. Number of returned Peace 

Corps Volunteers participating in 

agency-initiated activities

10,000 10,809 Yes Declining

3.1.2.b. Number of educational 

institutions where returned Peace 

Corps Volunteers engage in Third 

Goal activities

760 656 No Declining

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 2012 

Target

FY 2012 

Result

Target Met Trend

40% 15% No Declining

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 cross-cultural educational curriculum and interactions with currently serving Volunteers. 

3.1.1.a. Percentage of Volunteers who report active participation in the Coverdell World Wise 

Schools/Correspondence Match Program

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

Target 40% 27%

Result 22% 15%

Baseline 38% 38% 40%

0%

10%

20%

30%

40%

50%

3.1.1.a. Percentage of Volunteers who report active 

participation in the Coverdell World Wise 

Schools/Correspondence Match Program

Target Result Baseline
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Discussion of Result: The target was not met. Volunteers have consistently reported low levels of 

participation in the program due to a variety of factors, including lack of or difficulty of communication with 

the American teachers with whom they were matched. To better measure and promote the desired outcome, 

this indicator was strengthened to measure Volunteers’ active participation in the program rather than 

enrollment.

In FY 2012, the agency began the process of collecting and analyzing data on the Correspondence Match program 

to identify opportunities to improve active participation on the part of Volunteers. A survey of participating 

American teachers indicated that while the program was effective (86 percent of respondents noted an increase 

in their understanding of other cultures as a result of the program), there were challenges in communicating 

with their Volunteer partners. The agency also fielded a survey to Volunteers to gather their perspectives on the 

Correspondence Match program; the results are not yet complete.

Strengthening Future Performance: The agency will continue to experiment with content-delivery 

alternatives that will reach the learners directly, such as including more educational materials on the website 

(http://www.peacecorps.gov/wws/). Information gathered from the teacher and Volunteer surveys will also 

inform additional improvements to the program.

Data Source: Annual Volunteer Survey 

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

Program

FY 2012 

Target

FY 2012 

Result

Target Met Trend

10,000 13,892 Yes Improving

Rationale: Individuals and organizations donating to a 

community-driven, Volunteer-developed Peace Corps 

Partnership Program project learn about host country 

communities and the issues they face. Donors build an 

understanding about different people and cultures and 

about global development issues.

Discussion of Result: The target was met. The Peace Corps Partnership Program (http://donate.peacecorps.gov) 

connects donors in the United States with Volunteers and their host communities overseas. Donors contribute 

to various types of projects initiated by communities and supported by Volunteers across the world. In FY 2012, 

13,892 donors to the program made 14,179 donations for a total of over $2.4 million. Notably, the number of 

Volunteer projects supported under the Peace Corps Partnership Program increased from 822 in FY 2011 to 969 

in FY 2012. 

The agency expanded on the gains made last year during the Peace Corps’ 50th anniversary. The donor base 

continues to grow as individuals and organizations see the impact of their contributions through interactions with 

Volunteers. 

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

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

Target 8,000 8,500 9,000 10,000 10,500

Result 8,915 10,595 9,804 12,079 13,892

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

3.1.1.b. Number of individuals and organizations 

supporting the Peace Corps Partnership Program

Target Result
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Strengthening Future Performance: The Peace Corps Partnership Program will explore the use of social media 

to encourage and request donations to Volunteer projects, expanding opportunities for donors to become more 

directly involved in addressing global issues.

Data Source: Office of Strategic Partnerships 

Indicator 3.1.1.c: Percentage of Volunteers who report sharing their experiences with family, friends, 

and/or the American public

FY 2012 

Target

FY 2012 

Result

Target Met Trend

98% 99% Yes Maintaining

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. Volunteers share 

their experiences with the American public through a variety 

of means, including mail, electronic media, and hosting American visitors in their country of service. Increasingly, 

Volunteers are sharing their experiences through electronic means. In FY 2012, 74 percent of Volunteers shared 

their experiences through social media, compared to 67 percent in FY 2011. Additionally, 54 percent of Volunteers 

utilized personal websites or blogs.

The agency encourages Volunteers to share their experiences through initiatives such as the Peace Corps Digital 

Library (http://collection.peacecorps.gov/). Volunteers and others in the larger Peace Corps community can 

upload photos or stories related to their service to the Digital Library. In FY 2012, 646 stories and photos were 

uploaded by current and returned Volunteers.

Strengthening Future Performance: As technology evolves, the agency will continue to explore new ways to 

facilitate Volunteers sharing of their 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 Peace Corps Volunteers participating in agency-initiated activities

FY 2012 

Target

FY 2012 

Result

Target Met Trend

10,000 10,809 Yes Declining

3.1.1.c. Percentage of Volunteers who report sharing their experiences with family, friends, an

American public 

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

Target 98% 98%

Result 97% 98% 99% 99% 99%

75%

80%

85%

90%

95%

100%

3.1.1.c. Percentage of Volunteers who report 

sharing their experiences with family, friends, 

and/or the American public 

Target Result
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Rationale: When returned Peace Corps Volunteers participate in agency-initiated activities, they share their 

experiences with the American public, increasing awareness 

of other peoples, cultures, and global issues.

Discussion of Result: The target was met. Volunteers do 

not finish serving America or their host country at the end of 

their term of official service. Instead, they become returned 

Peace Corps Volunteers with an ongoing responsibility to 

build a better understanding of peoples across the world. 

Returned Volunteers take this responsibility seriously and engage in outreach efforts independently and through 

local returned Volunteer groups and organizations such as the National Peace Corps Association. The agency also 

sponsors a number of activities that provide returned Volunteers with opportunities to share their experiences 

with the American public.

In FY 2012, returned Volunteers shared their experiences at Peace Corps general information sessions throughout 

the United States. The agency held two national career conferences and four regional events to help recently 

returned Volunteers learn how to share their experiences with friends, family, employers, and the public. 

Additionally, the agency collaborated with the National Peace Corps Association at Third Goal expos in Nashville 

and Minneapolis to promote cross-cultural understanding.

The agency also improved the Third Goal website this year to collect more detailed information on activities 

and events held by returned Volunteers and friends of the Peace Corps (https://www.peacecorps.gov/resources/

returned/thirdgoal/register/). Individuals who registered their event received a packet of materials to assist in 

their efforts to share their stories with the American people. 

Strengthening Future Performance: Several offices in the agency will coordinate efforts to engage individual 

returned Volunteer groups nationwide in pledging to host a number of general information sessions over the year. 

The joint events will provide an opportunity for returned Volunteers to share their experiences and aid in the 

agency’s efforts to recruit skilled and diverse individuals for service. 

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 Peace Corps Volunteers engage in 

Third Goal activities

FY 2012 

Target

FY 2012 

Result

Target Met Trend

760 656 No Declining

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.

3.1.2.a. Number of Returned Peace Corps Volunteers participating in agency-i

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

Target 7,700 8,300 8,600 10,000 10,500

Result 7,209 9,102 9,627 18,792 10,809

0

5,000

10,000

15,000

20,000

3.1.2.a. Number of returned Peace Corps 

Volunteers participating in agency-initiated 

activities

Target Result
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Discussion of Result: The target was not met. 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 ask returned Volunteers to visit and 

share their experiences. In FY 2012, returned Volunteers 

spoke at 585 educational institutions. To expand awareness 

of the program, the agency collaborated with various 

educational resource groups to post on their websites a link 

to the Coverdell World Wise Schools website (http://www.

peacecorps.gov/wws/). The website includes resources for educators as well as interactive content for students.

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 American community. In the process, they continue their Peace Corps service by 

volunteering in communities at home and sharing their experience as Volunteers with their colleagues, friends, 

and the individuals they are serving. In FY 2012, the agency collaborated with 71 graduate schools through the 

Coverdell Fellows Program.

Strengthening Future Performance: The agency will expand opportunities for returned Volunteers by reaching 

out to new potential partners for the Coverdell World Wise Schools Speakers Match and Coverdell Fellows 

programs.

Data Source: Office of Third Goal and Returned Volunteer Services and Office of Strategic Partnerships

3.1.2.b. Number of educational institutions where returned Peace Corps Vo

activities

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

Target 550 600 650 760 810

Result 502 829 920 656

0

200

400

600

800

1,000

3.1.2.b. Number of educational institutions where 

returned Peace Corps Volunteers engage in third 

goal activities

Target Result

An Education Volunteer (right) assists an instructor 

teaching English to fifth and sixth graders in the 

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

evolving technical needs of host countries

Performance Management Framework

The agency meets the skill needs of local communities by recruiting and selecting individuals who have the skills, 

experience, and maturity to be successful Peace Corps Volunteers. Operations are organized so that Volunteers 

with the requested skills are recruited, selected, and fielded at the appropriate times. 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 the host country.

In FY 2012, three of six performance targets were met, and four indicators either improved performance or 

maintained the same level of performance as last year. While there were successes in recruiting individuals from 

underrepresented ethnic groups, performance in FY 2012 was constrained by inefficient Volunteer Delivery 

System (VDS) operations resulting from necessary programming changes. Looking forward, the process and 

technology changes that will be obtained through the VDS redesign project will result in more efficient and 

effective operations. 

Begin callout: In August 2012, the Peace Corps signed an agreement under the Water and 

Development Alliance (WADA)—a long-standing public-private partnership between the 

U.S. Agency for International Development and The Coca-Cola Company—to improve 

local capacity to deliver sustainable water supply, sanitation, and hygiene services for 

the reduction of waterborne disease around the world. Through the agreement, the 

Peace Corps will raise awareness and build capacity among Peace Corps and community 

trainers around sustainable water supply and sanitation services, as well as improved 

hygiene behaviors. The program will focus especially on women in the communities and 

countries served. The agency will launch the program in West Africa and will adapt it for 

use worldwide. Acting Peace Corps Director Carrie Hessler-Radelet said: “Our volunteers’ 

intimate knowledge of cultural and community practices, plus their commitment to 

sustainable health projects, make this training-focused partnership a perfect fit for Peace 

Corps”. End callout. 

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 Goal Results

Performance Goals Performance Indicators FY 2012 

Target

FY 2012 

Result

Target 

Met

Trend

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 

63% 69% Yes Improving

4.1.1.b. Percentage of trainee 

requests filled by trainee 

inputs

95% 97% Yes Maintaining

4.1.2: Manage Volunteer 

recruitment functions in 

an effective and efficient 

manner

4.1.2.a. Nominee attrition rate 27% 28% No Improving

4.1.2.b. Number of days from 

application to invitation

137 177 No Declining

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% 6.6% No Declining

4.2.1.b. Percentage of 

applications from individuals 

of diverse ethnicities

25% 27% Yes Improving

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 2012 

Target

FY 2012 

Result

Target Met Trend

63% 69% Yes Improving

Rationale: This indicator is designed to balance overseas 

posts’ needs for skilled Volunteers with the applicants 

traditionally interested in Peace Corps service: recent 

college graduates with limited professional experience.

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

met in FY 2012 as a result of the ongoing implementation of 

Focus In/Train Up as well as close intra-agency collaboration 

throughout the year determining applicant supply and developing realistic trainee requests.

Setting targets for trainees requested for generalist assignments encourages the development of projects where 

Volunteers can be “trained-up” to meet the technical needs of host country partners. While progress was made 

in this area, clear communication between overseas posts and headquarters regarding the supply of applicants 

remains a challenge.

4.1.1.a. Percentage of trainees requested for generalist assignments 

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

Target 63% 66%

Result 59% 60% 63% 64% 69%

50%

60%

70%

80%

90%

100%

4.1.1.a. Percentage of trainees requested for 

generalist assignments 

Target Result
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PERFORMANCE SECTION

Strengthening Future Performance: Process and technological improvements through the VDS redesign 

project will make applicant supply and trainee request information more readily available and inform decision 

making related to balancing the skill needs of posts with the available applicant pool.

Data Source: Peace Corps Enterprise Database 

Indicator 4.1.1.b: Percentage of trainee requests filled by trainee inputs

FY 2012 

Target

FY 2012 

Result

Target Met Trend

95% 97% Yes Maintaining

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’ human resource and technical 

needs. 

Discussion of Result: The target was met. Despite meeting 

the target, the applicant supply does not yet fully meet the 

demand for trainees in certain areas, particularly in specialized education and agriculture assignments. As a 

result, some unfilled trainee requests are expected. While the agency met this target in FY 2012, performance is 

declining.

The reduced level in recruitment resources from FY 2011 continued in FY 2012, contributing to a drop in 

applications. The agency received 10,091 applications this year, compared to 12,206 last year, a 17 percent drop. 

A sustained drop in applications in future years will restrict the agency’s ability to field skilled Volunteers at the 

levels requested by posts. 

Late changes to posts’ trainee requests also contributed to the lower level of performance in FY 2012. The VDS 

operates on a structured schedule to ensure the efficient delivery of qualified and suitable trainees to posts at the 

requested time. Late changes to trainee requests, while often unavoidable, can disrupt this process. For example, 

significant changes to Volunteer presence were made in El Salvador, Guatemala, Honduras, and Mali in order to 

better ensure the safety and security of Volunteers. These changes reverberated through the VDS as displaced 

Volunteers and prospective applicants were moved to other country programs. 

Strengthening Future Performance: The agency will monitor application numbers and analyze the reasons 

behind the drop in applications. This effort will be informed by improved data on applicant characteristics 

and recruitment campaigns available through the VDS redesign project. Additionally, efforts to better align 

data-collection activities with planning processes will provide actionable information to decision makers at 

the appropriate time, reducing the number of late trainee request changes. VDS operations will be managed 

through the redesigned Program Advisory Group, an intra-agency working group composed of senior Peace 

Corps staff.

Data Source: Peace Corps Enterprise Database

4.1.1.b. Percentage of trainee requests filled by trainee inputs

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

Target 95% 95%

Result 101% 100% 101% 97% 97%

75%

80%

85%

90%

95%

100%

105%

4.1.1.b. Percentage of trainee requests filled by 

trainee inputs

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

manner

Indicator 4.1.2.a: Nominee attrition rate

FY 2012 

Target

FY 2012 

Result

Target Met Trend

27% 28% No Improving

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 VDS. A higher percentage of nominees 

who become trainees indicates 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 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 service. 

However, the agency can reduce some dropouts related to poor communication or lengthy processing times, 

for example. 

The agency’s performance on this indicator in FY 2012 can be primarily attributed to volatility in the VDS related 

to late trainee request changes. As mentioned in performance goal 4.1.1, changes to trainee requests outside of the 

structured schedule of the VDS can be highly disruptive. Significant changes to programs may reduce or increase 

the need for applicants with particular skill-sets. As a result, nominated applicants may need to change programs 

or be removed from consideration. The resulting uncertainty about their departure date and assignment is a 

contributing factor in some applicants’ decisions to drop out.

Strengthening Future Performance: The VDS redesign project will allow for more frequent and informative 

communication with applicants throughout the process—a key improvement in the effort to retain nominees. 

Changes to the medical review process will also reduce processing time and the financial burden on the majority 

of applicants. 

Data Source: Peace Corps Enterprise Database

Indicator 4.1.2.b: Number of days from application to invitation

FY 2012 

Target

FY 2012 

Result

Target Met Trend

137 177 No Declining

Rationale: Reducing the processing time for applicants at critical stages in the VDS contributes to higher retention of applicants and reduces congestion in the system.

4.1.2.a. Nominee attrition rate

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

Target 27% 26%

Result 30% 28% 28% 33% 28%

0%

10%

20%

30%

40%

50%

4.1.2.a. Nominee attrition rate

Target Result
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PERFORMANCE SECTION

Discussion of Result: The target was not met. This 

indicator was improved to measure the average number 

of days elapsed at three stages of the application process 

identified as known bottlenecks in the VDS: from the 

time applications are submitted to interview date, receipt 

of medical documentation to medical qualification, and 

medical qualification to invitation. Due to process changes 

associated with the VDS redesign project, this indicator only 

measures applicant processing time prior to the launch of the 

new application system on August 15, 2012.

The agency set aggressive targets for each component and, while targets were not met, progress was made in 

reducing the number of days elapsed in the medical review process. Compared to a target of 50 days, medical 

staff processed applicants’ medical documentation in an average of 55 days—an improvement over the FY 2011 

result of 69 days. To move applicants more efficiently through the system, the agency made adjustments to medical 

screening guidelines, including the assignment of a mental-health provider to review mental-health cases.

In FY 2012, applicants moved from application to interview in an average of 55 days, compared to the target of

38 days. The medical qualification to invitation segment took 67 days; the target was 49 days. Both segments 

relate to the applicant assessment and selection process, and the low performance level can be attributed to the 

instability of trainee requests in the VDS, as discussed earlier in this report.

Strengthening Future Performance: The new Peace Corps application and electronic applicant processing 

system—a significant milestone in the VDS redesign project—became operational at the end of FY 2012, and the 

agency will modify the measurement of this indicator to respond to new process changes. Significant components 

of the applicant assessment and selection process will change, requiring the agency to re-evaluate where 

opportunities exist to drive performance improvement in the new process. 

Data Source: Peace Corps Enterprise Database 

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

Americans

Indicator 4.2.1.a: Percentage of applications from individuals age 50 and older

FY 2012 

Target

FY 2012 

Result

Target Met Trend

8% 6.6% No Declining

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.

4.2.1.a. Percentage of applications from individuals age 50 and older

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

Target 8.0% 8.5%

Result 9.5% 8.2% 7.3% 7.1% 6.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

4.2.1.a. Percentage of applications from individuals 

age 50 and older

Target Result

4.1.2.b. Number of days from application to invitation

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

Target 137 162

Result 177

Baseline 112 155 167 168

0

40

80

120

160

200

4.1.2.b. Number of days from application to 

invitation

Target Result Baseline
70 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Discussion of Result: The target was not met. In FY 2012, 662 individuals age 50 and older applied to serve as 

Peace Corps Volunteers, 6.6 percent of all applications. Of the Volunteers serving in FY 2012, 7 percent were age 

50 and older.

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 and resource constraints. Performance on this indicator has 

declined as a result. 

This year, the agency worked with partners to maintain a presence in the age 50 and older community. Notably, the 

agency deepened its collaboration with AARP, a domestic strategic partner, in marketing and outreach. 

Strengthening Future Performance: Moving forward, the agency will leverage existing relationships in an effort 

to maintain an acceptable level of performance.

Data Source: Peace Corps Enterprise Database 

Indicator 4.2.1.b: Percentage of applications from individuals of diverse ethnicities

FY 2012 

Target

FY 2012 

Result

Target Met Trend

25% 27% Yes Improving

Rationale: Increasing the number of applications from 

individuals of underrepresented ethnic groups will result 

in a Volunteer population that more accurately reflects the 

diversity of America. 

Discussion of Result: The target was met. The agency 

made diversity recruitment a priority, and performance 

continues to improve. In FY 2012, 27 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. 

Improvement in the number of applications received from African Americans and Hispanics/Latinos is noteworthy. 

Applications from African Americans increased from 7.7 percent of all applications in FY 2011 to 8.2 percent in 

FY 2012. Hispanic/Latino applicants increased from 8.9 percent in FY 2011 to 10.2 percent in FY 2012.

The Peace Corps devoted significant attention to diversity recruitment in FY 2012, including increasing the 

number of 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 intensified outreach to national Pan-hellenic organizations to attract more college-educated 

and service-minded individuals of diverse backgrounds. In FY 2012, the agency signed a memorandum of 

4.2.1.b. Percentage of applications from individuals of diverse ethnicities

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

Target 25% 26%

Result 20% 21% 24% 26% 27%

0%

10%

20%

30%

40%

50%

4.2.1.b. Percentage of applications from individuals 

of diverse ethnicities

Target Result
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PERFORMANCE SECTION

understanding with Alpha Kappa Alpha Sorority Inc. The agency also collaborated with Hispanic communities 

through activities with organizations such as the National Council of La Raza and the Hispanic Association of 

Colleges and Universities.

The agency has had success in encouraging applications from these ethnic groups. However, retaining applicants 

through the application process to become Volunteers remains a challenge. In FY 2012, 27 percent of applicants 

were from these ethnic groups, compared to 22 percent of the Volunteer population. The agency has taken a 

number of steps to better understand and address this issue. 

For example, to provide a more hands-on approach to applicant support and communication, one regional 

recruitment office implemented a discussion series, Impact Your World, where returned Volunteers, current 

applicants, and interested individuals from diverse ethnicities meet regularly to discuss Peace Corps service 

and the application process. The group continues to increase in size and provides an alternative method for 

communicating with and supporting the unique needs of individual applicants.

Strengthening Future Performance: Future efforts to improve the ethnic diversity of Volunteers will focus 

on implementing and improving existing programs, including the Impact Your World series and expanding 

engagement with partner organizations. The agency will work on improving the retention of applicants to increase 

the number of Volunteers serving from underrepresented ethnic groups. The agency will also continue to be 

actively engaged in the President’s initiative to promote diversity and inclusion in the federal workforce.

Data Source: Peace Corps Enterprise Database 

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

through the provision of high quality Volunteer support with optimal health care, safety and 

security support, and effective management of resources

Performance Management Framework

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
72 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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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 of improvement.

The agency continued to build on improvements made in the last few years, further enhancing the safety, security, 

and medical support provided to Volunteers. In FY 2012, five of 13 performance targets were met, and out of the 

nine indicators where trend information is available, seven indicators either improved or maintained last year’s 

level of performance. The indicator related to gathering unreported crime (5.1.1.e) is monitored, and a target is not 

set. 

Performance Goal Results

Performance 

Goals

Performance Indicators FY 2012 

Target

FY 2012 

Result

Target 

Met

Trend

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

71% 71% Yes Improving

5.1.1.b. Percentage of posts that have their 

safety and security systems reviewed by a 

Peace Corps safety and security officer

33% 32% No Improving

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

85% 75% No N/A

5.1.1.d. Percentage of Volunteers who 

report they feel more than adequately 

safe or very safe where they live and work

90% 82% No Improving

5.1.1.e. Ratio of unreported serious crimes 

to reported serious crimes

Monitor results

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

93% 93% Yes Maintaining

5.1.2.b. Percentage of Peace Corps 

Volunteers who report the emotional 

support they received from staff as 

adequate or better

82% 81% No Improving

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

75% 72% No Declining
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 73

PERFORMANCE SECTION

Performance 

Goals

Performance Indicators FY 2012 

Target

FY 2012 

Result

Target 

Met

Trend

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% 78% No Declining

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

95% 96% Yes Improving

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 Yes N/A

5.2.2.b. Percentage of posts and 

headquarters offices that adhere 

to agencywide staffing policies and 

procedures

85% 54% No N/A

5.2.2.c. Percentage of posts and 

headquarters offices that benefit from 

collaboration with agency strategic 

partners

75% 85% Yes Improving

5.2.3: Ensure 

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 missioncritical work process

Complete 

annually

Not 

completed

No N/A

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 2012 

Target

FY 2012 

Result

Target Met Trend

71% 71% Yes Improving

Rationale: Safety and security training throughout Volunteers’ service is designed to build awareness of cross-cultural 

issues related to personal safety, in-country risks and ways 

to mitigate those risks, and reporting procedures should 

a crime occur. Volunteers’ perceptions are one indication of the effectiveness of the agency’s safety and security 

training. 

5.1.1.a. Percentage of Peace Corps Volunteers who report their safety and security training is 

or very effective

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

Target 71% 73%

Result 70% 74% 69% 68% 71%

50%

60%

70%

80%

90%

100%

5.1.1.a. Percentage of Peace Corps Volunteers who 

report their safety and security training is effective 

or very effective

Target Result
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Discussion of Result: The target was met. Volunteers have consistently given high ratings to their safety and 

security training, and performance continues to improve even with the higher standard set in the target this year 

(the indicator measures “effective or very effective” responses compared to the “adequate or better” standard 

utilized in years past).

In FY 2012, the agency began implementing four standardized safety and security training sessions on personal 

security, sexual-assault awareness, reporting procedures, and bystander intervention. This year, 92 percent of 

posts implemented all of the new sessions; the remaining posts will begin using the new curriculum as they host 

pre-service and in-service training in the coming months. 

Strengthening Future Performance: With standardized training, the agency will be able to evaluate the 

effectiveness of its training worldwide. The agency will also work to integrate safety and security topics into other 

training sessions to extend the reach of the information and place it within the appropriate context. 

Data Source: Office of Safety and Security

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 2012 

Target

FY 2012 

Result

Target Met Trend

33% 32% No Improving

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 

reviewed to ensure they are implemented in accordance with 

agency policy and reflect the current safety conditions of the 

country.

Discussion of Result: The target was not met. In FY 2012, regional Peace Corps safety and security officers 

reviewed the safety and security systems of 21 posts (32 percent of posts). This indicator was designed to ensure 

that the safety and security systems of all posts are reviewed every three years. The basic components of post 

safety and security systems include site selection, preparation, and monitoring; training; emergency planning and 

communication; and incident management. Issues identified in the review process are reviewed by the agency and 

corrective action is taken. The agency’s response to recommendations by safety and security officers is tracked 

through indicator 5.1.1.c. 

Strengthening Future Performance: The agency is reviewing options for an improved data-management system 

to track when reviews have taken place and to collect and monitor recommendations made by safety and security 

officers in a more efficient manner.

Data Source: Office of Safety and Security

5.1.1.b. Percentage of Posts that have their safety and security systems rev

safety and security officer

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

Target 33% 33% 33% 33% 33%

Result 21% 33% 28% 32%

0%

10%

20%

30%

40%

50%

5.1.1.b. Percentage of posts that have their safety 

and security systems reviewed by a Peace Corps 

safety and security officer

Target Result
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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 2012 

Target

FY 2012 

Result

Target Met

85% 75% No

Rationale: Peace Corps safety and security officers develop 

recommendations for improvement based on reviews of posts’ 

safety and security systems. The timely implementation 

of recommendations is essential to providing a system that 

supports the safety and security of Volunteers.

Discussion of Result: The target was not met. This 

indicator was improved to measure the implementation of the most critical recommendations for improvements 

to safety and security systems. 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 

program staff met throughout the year to identify which recommendations should be considered critical. An 

implementation timeline was developed for each critical recommendation. Of the 201 critical recommendations 

due in FY 2012, 150 were implemented (75 percent).

Scheduling conflicts at post are often cited as a challenge to the timely implementation of recommendations. Data 

management is also difficult and time-consuming as analysts track the status of numerous recommendations at 

different stages of implementation by manually entering data into spreadsheets.

Strengthening Future Performance: An improved data management system would enable the agency to better 

track recommendations, including critical recommendations, thereby reducing the staff time currently required 

to manage 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 2012 

Target

FY 2012 

Result

Target Met Trend

90% 82% No Improving

Rationale: When Volunteers report that they feel safe where 

they live and work, they are providing an indication of the 

success of the systems the agency has developed to ensure 

the safety and security of Volunteers.

5.1.1.d. Percentage of Volunteers who report they feel more than adequately safe or very safe 

they live and work

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

Target 90% 91%

Result 87% 89% 89% 79% 82%

50%

60%

70%

80%

90%

100%

5.1.1.d. Percentage of Volunteers who report they 

feel more than adequately safe or very safe where 

they live and work

Target Result

5.1.1.c. Percentage of all critical Volunteer safety and security recommendations made by Pea

safety and security officers implemented by posts by the agreed upon time

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

Target 85% 88%

Result 75%

Baseline 91% 84% 56% 79%

0%

20%

40%

60%

80%

100%

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

Target Result Baseline
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Discussion of Result: The target was not met. Traditionally, a high percentage of Volunteers have reported that 

they feel safe where they live and work. In FY 2011, however, Volunteers’ perceptions of their personal security 

dropped, due in part to the increased emphasis on safety and security by the agency, instances of civil strife in 

the countries where the Peace Corps operates, and other external factors. While the FY 2012 target was not met, 

performance improved from last year. 

Analysis of responses to the Annual Volunteer Survey (AVS) provides some insights into the factors that contribute 

to Volunteers’ sense of security. Volunteers who reported they feel safe also noted that they are well integrated 

into their community (91 percent) and satisfied with the site selection and development process (75 percent). 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. 

Additionally, 74 percent of Volunteers who reported they feel safe where they live and work also reported a high 

level of satisfaction with their safety and security training. Safety and security training provides Volunteers with 

skills to deal with cross-cultural issues and to mitigate risks. Improvements to safety and security training are 

detailed in indicator 5.1.1.a.

Strengthening Future Performance: Being integrated into the community and living and working in an 

appropriate site contribute greatly to the safety and security of Volunteers. In FY 2013, the agency will standardize 

site selection and development guidelines and work with posts to ensure adherence to site standards.

Data Source: Annual Volunteer Survey

Indicator 5.1.1.e: Ratio of unreported serious crimes to reported serious crimes

Rationale: An increase in the number of reported serious crimes with a corresponding decrease in unreported 

serious crimes indicates that Volunteers are more comfortable with the response and support from Peace Corps 

staff in the event a crime occurs. Improved reporting suggests that Volunteers are receiving the support they need 

and provides the agency with a more accurate account of safety and security issues in the country.

Discussion of Result:This indicator is modeled on a measure from the Department of Defense. The Peace Corps is 

in the process of building its ability to measure this indicator. “Reported” serious crimes are currently disclosed by 

the Volunteer to post or headquarters staff and catalogued in a secure agency database. “Unreported” serious crimes 

are not directly disclosed by the Volunteer to post or headquarters staff but instead, are reported anonymously. 

The agency currently gathers unreported crime data from Volunteers through the AVS. The AVS is an anonymous 

survey that includes questions about crime incidents. While the AVS provides valid data on Volunteers’ experiences 

and perceptions, it has not been designed specifically as a victimization survey. The agency is collaborating closely 

with the National Institute of Justice at the Department of Justice to develop a separate crime victimization survey 

modeled on standards utilized by the public health and criminal justice communities. 

This is the first year the agency has included this indicator in its performance plan. When the crime victimization 

survey is established, the agency will monitor the results of the indicator to establish a baseline. 
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PERFORMANCE SECTION

Strengthening Future Performance: The agency is planning to administer an anonymous crime victimization 

survey to more accurately measure unreported serious crime. 

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 2012 

Target

FY 2012 

Result

Target Met Trend

93% 93% Yes Maintaining

Rationale: Volunteers reporting on their satisfaction with 

the health care they receive from Peace Corps medical officers is a direct indication of the quality of the medical and 

mental health care being provided by the Peace Corps.

Discussion of Result: The target was met. Peace Corps 

medical officers are the primary caregivers of medical and 

mental-health services to Volunteers. Volunteers’ satisfaction with medical officers is a result of the agency’s 

sustained focus on improving an already high level of performance.

For the past few years, the agency has been implementing an ambitious quality improvement program through 

the Health Care Quality Assurance Council to systematically improve the medical and mental-health services 

provided to Volunteers. Utilizing FOCUS-PDSA, a quality improvement model used in health care and other 

industrial settings, combined with other data-collection methods, the agency has identified opportunities for 

improvement and executed action plans. Quality improvement teams engaged in the following efforts in FY 2012:

•	 Use of the quality nurse line: Volunteers can email nurses directly at headquarters if they have any concerns 

with their health care. Several email concerns were received in FY 2012 and appropriate clinical and/or 

administrative follow-up was conducted.

•	 Quarterly medical chart reviews: Training and standardization of practice was identified as an issue; 

in response, the agency instituted quarterly medical chart reviews. A sample of Volunteer medical charts is 

reviewed by a team of clinicians, and feedback is given to Peace Corps medical officers for improvement.

•	 Medical supply stocking: The agency is moving from a “just-in-case” to a “just-in-time” approach to medical 

supply stocking, which will save the agency resources by reducing unused and expired medical supplies. The 

agency also worked with the U.S. Army to facilitate a continuing medical education course for first responders 

and develop jump bags containing emergency medical supplies.

5.1.2.a. Percentage of Peace Corps Volunteers who rate their satisfaction w

Peace Corps medical officers as adequate or better

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

Target 90% 90% 90% 93% 94%

Result 92% 93% 93% 93% 93%

75%

80%

85%

90%

95%

100%

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

Target Result
78 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

•	 Analysis of Volunteer satisfaction with health care: Indicator results from FY 2011 were disaggregated by 

post to identify the areas with lowest satisfaction. The results were cross-analyzed with other administrative 

data, and the agency found that the posts with the highest medical staff turnover had the lowest Volunteer 

satisfaction. The analysis indicated that stability of health-care providers is a major factor in Volunteer 

satisfaction and the agency has redoubled its efforts to improve the retention of Peace Corps medical officers.

•	 Peace Corps medical officer mentoring: Recently hired Peace Corps medical officers are being mentored by 

medical staff at headquarters to ensure a more consistent level of medical care across all posts. 

Strengthening Future Performance: The agency will continue to make gains in providing medical and mentalhealth services 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 2012 

Target

FY 2012 

Result

Target Met Trend

82% 81% No Improving

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. A high level 

of satisfaction with their care indicates quality mental and 

medical-health services are being provided to Volunteers in 

support of their emotional health.

Discussion of Result: The target was not met. Volunteers consistently report satisfaction with the emotional 

support provided by Peace Corps staff. Due to the importance of supporting the emotional needs of Volunteers, the 

agency set a stretch target to encourage high performance. While the target was not met in FY 2012, the result is an 

improvement from last year and constitutes a high level of performance.

All agency staff members are responsible for providing emotional support to Volunteers, including country 

directors, program managers, and medical officers. The agency provides emotional support to Volunteers by 

training Volunteers on how to deal with the unique stressors of Peace Corps service, building the skills of American 

and host country staff to support the emotional needs of Volunteers, and building structures to provide support in 

the wake of traumatic events. 

The agency engaged in all of these activities in FY 2012, including holding mental-health training sessions for post 

staff, standardizing peer support network training, increasing the number of consultations provided to Volunteers 

by counselors in the Counseling and Outreach Unit, and providing support to victims of crime through the Office 

of Victim Advocacy.

5.1.2.b. Percentage of Peace Corps Volunteers who report the emotional support they receive

staff as adequate or better

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

Target 70% 75% 80% 82% 83%

Result 80% 81% 81% 80% 81%

50%

60%

70%

80%

90%

100%

5.1.2.b. Percentage of Peace Corps Volunteers who 

report the emotional support they received from 

staff as adequate or better

Target Result
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PERFORMANCE SECTION

Strengthening Future Performance: The agency is launching an initiative to explore how the Peace Corps can 

further improve its support of the emotional and mental-health needs of its Volunteers. The initiative will be 

informed by the responses to the 2012 Annual Volunteer Survey about the most stressful factors facing Volunteers. 

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 2012 

Target

FY 2012 

Result

Target Met Trend

75% 72% No Declining

Rationale: Volunteers encounter unique stressors during 

service that can influence their mental and medical health. 

Volunteers reporting a high level of support indicate that the 

Peace Corps is providing quality health care.

Discussion of Result: The target was not met. This 

indicator was improved to measure the range of stressors 

associated with Volunteer service. Volunteers reported dealing with several stressors while living and working 

in their communities, including working with community partners (20 percent), communicating in the 

local language (17 percent), and dealing with isolation and loneliness (16 percent). More than half of all Volunteers

(55 percent) reported that their local diet limited their ability to maintain their physical health. Another 29 

percent noted that a lack of physical exercise was also a factor in maintaining their health. 

While a majority of Volunteers encounter some level of stress while living and working in their communities, one 

in five indicated that they have no need for support to cope with stress.

The agency supports Volunteers through training on appropriate coping mechanisms and providing direct support 

through medical officers, country directors, program managers, and counseling staff.

Resiliency among Volunteers and staff is important in responding to everyday stressors. In FY 2012, Peace Corps 

medical officers attended a continuing medical education session on Volunteer resiliency to learn how to empower 

Volunteers. The agency also started a discussion on how to better support the needs of Peace Corps staff in coping 

with stress.

Strengthening Future Performance: The agency’s work to improve site selection and preparation may 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. 

Data Source: Annual Volunteer Survey

5.1.2.c. Percentage of Peace Corps Volunteers who report adequate or better support in copin

stress from living and working in their community

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

Target 75% 76%

Result 74% 72%

Baseline 53% 73% 74%

0%

20%

40%

60%

80%

100%

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

Target Result Baseline
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PERFORMANCE SECTION

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 2012 

Target

FY 2012 

Result

Target Met Trend

95% 78% No Declining

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 Peace 

Corps formulates and executes its budget by organizational 

unit. Each unit submits an operational plan prior to the start 

of the fiscal year that lays out expected funding for the year based on historical operational cost information and 

current and future fiscal reality.

Budget analysts work with organizational units throughout the year to formulate accurate operational plans, adjust 

budgets based on need, and to spend appropriately. The constant collaboration between budget and program staff 

ensures agency operations are budgeted properly.

Strengthening Future Performance: The agency will review methods for improving the linkage between 

performance planning and budgeting to ensure operational plans accurately reflect agency priorities.

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 2012 

Target

FY 2012 

Result

Target Met Trend

95% 96% Yes Improving

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 three-year strategic plan through the 

Integrated Planning and Budgeting System (IPBS). Posts and headquarters offices are given the opportunity to 

5.2.1.a. Percentage of posts and headquarters offices that manage resources within approved 

and operational plans

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

Target 95% 95% 95% 95% 95%

Result 83% 84% 85% 78%

50%

60%

70%

80%

90%

100%

5.2.1.a. Percentage of posts and headquarters 

offices that manage resources within approved 

budgets and operational plans

Target Result

5.2.1.b. Percentage of posts and headquarters offices whose Integrated Planning and Budget

(IPBS) strategic goals support the agency's strategic plan goals

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

Target 95% 98%

Result 88% 96%

75%

80%

85%

90%

95%

100%

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

Target Result
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PERFORMANCE SECTION

identify which agency strategic goals their organizational goals support. In FY 2012, all headquarters offices and 

58 of 61 eligible posts submitted IPBS strategic plans that supported the agency’s strategic goals. 

Strengthening Future Performance: In FY 2012, the agency piloted a standardized electronic IPBS strategic plan 

template for headquarters offices to improve the analysis of strategic plans and to ensure all critical information is 

captured. The new template will be rolled out to posts in FY 2013.

Data Source: Office of Strategic Information, Research, and Planning

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 2012 

Target

FY 2012 

Result

Target Met

Complete 

annually

Completed Yes

Rationale: Financial and Volunteer resources allocated to posts represent a significant portion of the agency’s 

budget. By conducting a standardized, annual process for reviewing the agency’s 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 recommendations. Each of these components was 

completed as part of the Country Portfolio Review process in FY 2012. As much of this process extends across 

multiple fiscal years, work has already begun on aspects of the Country Portfolio Review to be completed in 

FY 2013.

The Peace Corps uses external data developed by third-party international institutions such as the United Nations 

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 review completed in FY 2012 included data from nearly 90 categories for all Peace Corps 

posts. 

The Country Portfolio Reviews completed in FY 2011 and FY 2012 informed the agency’s Volunteer and financial 

allocation decisions. More specific details on these decisions are provided in the Research and Evaluation section.

Strengthening Future Performance: The agency will better align the Country Portfolio Review process with 

the agency’s budget formulation process so that the results of the review can be used to inform long-term resource 

planning. 

Data Source: Office of the Director
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Indicator 5.2.2.b: Percentage of posts and headquarters offices that adhere to agencywide staffing 

policies and procedures

FY 2012 

Target

FY 2012 

Result

Target Met

85% 54% No

Rationale: Agencywide staffing policies and procedures are 

consistent with federal government standards and compatible with local labor requirements. The implementation of 

these policies and procedures demonstrates the agency’s 

ability to effectively manage its human capital.

Discussion of Result: The target was not met. As a result 

of the standardization of personnel practices for all employees in FY 2011, the agency modified this indicator 

to measure the actual implementation of staffing policies and procedures—a higher performance standard. 

The indicator focuses on ensuring that all employees are aware of staffing policies and procedures through new 

employee orientation and that they receive mid-year and year-end performance appraisals.

This is the first year of measuring this indicator, and performance was lower than expected. In FY 2012, 

72 percent of eligible posts fully implemented all three of the measured staffing policies and procedures for all of 

their employees. While several headquarters offices implemented all three staffing policies and procedures for the 

majority of their employees, no office fully met the indicator. 

The agency was successful in providing an orientation for new employees. Ninety-five percent of headquarters 

offices and 94 percent of overseas posts held new employee orientations for all of their new employees. New 

employee orientations take place during the first three days of work for all new employees and include sessions on 

Peace Corps’ personnel practices. The orientation provided for new employees at the post in Armenia was notable, 

and included—in addition to an overview of staffing policies and procedures—the history of the Peace Corps in 

Armenia, videos of Volunteers working in the country, and visits to Volunteer sites. 

Completion of mid-year and year-end performance appraisals by the end of the fiscal year was more challenging. 

While 92 percent of posts completed year-end performance appraisals for all employees, only 59 percent of 

headquarters offices met this requirement. Further, 76 percent of posts completed mid-year appraisals, but no 

office conducted mid-year appraisals for all of their employees. 

While the timely submission of employee performance appraisals was an issue, there is clear evidence of gaps in 

the reporting system where some appraisals were not properly recorded. Constraints in the reporting system may 

be a major factor in the low level of reported performance in FY 2012. 

Strengthening Future Performance: Through the quarterly strategic plan performance review sessions in 

FY 2013, the agency will identify the challenges in meeting the targets for this indicator and coordinate efforts 

to improve performance, including developing an improved reporting system. Additionally, in FY 2012, the 

agency noted that the new employee orientations provided to staff in domestic regional recruitment offices did not 

5.2.2.b. Percentage of posts and headquarters offices that adhere to agenc

procedures

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

Target 85% 90%

Result 54%

0%

20%

40%

60%

80%

100%

5.2.2.b. Percentage of posts and headquarters 

offices that adhere to agencywide staffing policies 

and procedures

Target Result
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PERFORMANCE SECTION

sufficiently address employee benefits. As a result, the agency will provide supplemental online training on staffing 

policies and procedures, including benefits, to staff in domestic regional recruitment offices in FY 2013. 

Data Source: Overseas posts and headquarters offices data call

Indicator 5.2.2.c: Percentage of posts and headquarters offices that benefit from collaboration with 

agency strategic partners

FY 2012 

Target

FY 2012 

Result

Target Met Trend

75% 85% Yes Improving

Rationale: The agency collaborates with external 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 them more effectively.

Discussion of Result: The target was met. The agency collaborated with the following international strategic 

partners in FY 2012: 

•	 CHF International

•	 Food and Agriculture Organization of the United Nations

•	 Grassroot Soccer

•	 International Alliance for Youth Sports

•	 Malaria No More

•	 Millennium Challenge Corporation

•	 Population Services International

•	 Save the Children

•	 Special Olympics

•	 United Nations Volunteers

•	 U.S. Agency for International Development—Global Education Framework

•	 U.S. Agency for International Development—Global Food Security

•	 U.S. Agency for International Development—Small Project Assistance

•	 U.S. Centers for Disease Control and Prevention

•	 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

•	 World Cocoa Foundation

•	 World Food Program

5.2.2.c. Percentage of posts and headquarters offices that benefit from collaboration with age

strategic partners

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

Target 75% 83%

Result 70% 85%

50%

60%

70%

80%

90%

100%

5.2.2.c. Percentage of posts and headquarters 

offices that benefit from collaboration with agency 

strategic partners

Target Result
84 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

PERFORMANCE SECTION

These strategic partners provided assistance in training, volunteer assignments, material development, and 

the provision of logistical and strategic support. For example, with support from U.S. Agency for International 

Development under the Global Education Framework agreement, the Peace Corps is developing curricula to train 

Volunteers on integrating a gender perspective into their work. The training sessions will introduce Volunteers 

to topics such as training teachers to promote inclusiveness and gender awareness and how to respond to genderbased violence in their schools.

While the agency has benefited from several strategic partnerships over the years, there are costs associated with 

partnering with other organizations, including administrative costs and reporting requirements for Volunteers 

and staff. 

Strengthening Future Performance: The agency will continue annual reviews of its 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 additional partnerships in sectors, regions, and headquarters offices where a 

mutually beneficial opportunity for collaboration exists. 

Data Source: Overseas posts and headquarters offices data call

Performance Goal 5.2.3: Ensure 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 2012 

Target

FY 2012 

Result

Target Met

Complete 

annually

Not 

completed

No

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 on a specific area of performance improvement, contributing to more efficient and effective operations. 

Discussion of Result: The target was not 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. While neither requirement was met this year, the mission-critical work process that was ultimately 

selected demonstrated significant progress in FY 2012, and the effort will be sustained through the next year and 

beyond.

At the strategic plan performance review session for the second quarter of FY 2012, the chief operating officer 

announced the selection of the work process to be improved: the development of an applicant and Volunteer quality 

feedback loop between overseas posts and headquarters. The selection was a result of consultations with posts and 

headquarters offices throughout the first half of the fiscal year. 
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The project is a cross-agency effort that addresses recommendations made by the Peace Corps Inspector General 

to develop and implement a method to measure Volunteer quality, develop standards for applicant assessment, and 

create a mechanism for gathering feedback on Volunteer performance and suitability from post staff. 

In FY 2012, the agency developed and piloted a standardized applicant assessment tool for use by headquarters 

staff and domestic regional recruitment offices. Additionally, the agency developed and began piloting a Volunteer 

performance evaluation tool to be administered by overseas staff. In FY 2013, these assessment and evaluation 

tools will be integrated into the redesigned Volunteer Delivery System.

When the project is complete, the applicant and Volunteer quality feedback loop will, for the first time, directly 

connect how applicants are assessed for Peace Corps service with their success in the field. The feedback loop will 

provide critical insights into why Volunteers succeed and which competencies contribute to their success. 

Strengthening Future Performance: At the end of each fiscal year, the agency solicits ideas from posts and 

headquarters offices on what mission-critical process should be improved during the next year. In FY 2013, the 

agency will act more quickly on this information and announce the selected mission-critical process at the strategic 

plan review session for the first quarter. 

Data Source: Office of the Director 

Photo of a Youth Development Volunteer 

working with an English and German 

conversation club in Azerbaijan.
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Research and Evaluation

The Peace Corps conducts regular studies throughout the year to evaluate the agency’s progress toward its goals, 

ensure processes are operating efficiently, and inform resource allocation decisions. Research and evaluation 

activities are conducted at overseas posts and in various headquarters offices. Published agency studies can be 

found at www.peacecorps.gov/open/evaluations. 

In FY 2012, the Peace Corps initiated the development of an overarching evaluation framework, significantly 

strengthening its evaluation processes. When paired with procedural guidance, the new framework will codify 

the agency’s current best practices and add new structures and activities to improve evaluation at the agency 

and better demonstrate the impact of Volunteers’ work. Further, it will successfully connect the evaluation work 

currently being conducted in disparate offices and provide a clear delineation of the roles and responsibilities of 

both headquarters offices and overseas posts. The new evaluation framework will be completed in FY 2013.

In FY 2012, the agency conducted the following major research and evaluation activities:

•	 Annual Volunteer Survey

•	 Country Portfolio Review 

•	 Host Country Impact Studies 

•	 Evaluations by Overseas Posts and Headquarters Offices 

The Office of Inspector General also conducted various audits and evaluations.

While the specific purposes of the agency’s research and evaluation work varied in FY 2012, the findings from the 

studies were used to assess progress toward the agency’s strategic goals and identify actions to further improve 

agency performance. The results supported evidence-based decision-making and 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. The FY 2012 AVS recorded the highest response rate in the history 

of the survey, with 87 percent of Volunteers participating. This high overall response rate—and the fact that all but 

three posts achieved at least a 70-percent response rate (with 35 percent achieving a rate between 90-98 percent)—

signifies that the data is highly representative of the total Volunteer population.

The AVS asks Volunteers to assess the impact of their work, the effectiveness of their training, in-country staff 

support, their personal health and safety, and their overall satisfaction with their service. In FY 2012, the AVS 

included an expanded set of health-related questions to gather more information about factors affecting Volunteers’ 

physical and emotional health. 

Findings

The results of the FY 2012 AVS provided the agency with critical insights into Volunteers’ views and their 

in-country experiences. Results indicated that the training and support prepared Volunteers to stay safe, healthy, 

and productive in their work. Key results are listed below: 
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•	 Volunteers reported they effectively transferred knowledge and skills to help build the capacities of the host 

country individuals with whom they worked (87 percent) (Strategic Goal 1).

•	 Responses from Volunteers suggest that the training and support provided by the agency prepared them for 

service; 80 percent of Volunteers reported they were adequately or better prepared for Peace Corps service 

when they arrived in their country, and 96 percent reported that they were adequately or better prepared to 

meet the challenges of Peace Corps service at the time they took the survey, at least one month after arriving 

in-country (Strategic Goals 1, 2, 4, and 5).

•	 More than half (54 percent) of the Volunteers felt very integrated into their communities (Strategic Goals 1, 2, 

and 5). 

•	 A number of Volunteers (39 percent) who were about to complete their service reported they plan to participate 

in other volunteer activities in the United States. In this way, Volunteers will be bringing their volunteer 

experience home, yielding additional benefits to the United States through their continued service at home 

(Strategic Goal 3).

Actions Taken

AVS results are used for potential and views across posts and, over time, identifying trends and informing Peace 

Corps staff about Volunteers’ suggestions on how the agency can more effectively meet host country needs. 

Analysis of the results from prior years revealed that Volunteers’ satisfaction with the selection and preparation 

of their work locations had decreased. As a result, the agency included a new performance indicator in its FY 2012 

annual performance plan to ensure a focus on improving site selection and preparation and to measure progress.

AVS data was used in FY 2012 to better ensure the safety and security of Volunteers—the agency’s highest priority. 

In the FY 2011 AVS, Volunteers’ perceptions of their safety and security in El Salvador, Guatemala, and Honduras 

were lower than their peers in other countries. That information, coupled with other programmatic data compiled 

through the Country Portfolio Review, led the agency to realign operations in those countries in FY 2012. 

Country Portfolio Review

The agency completed its second annual Country Portfolio Review in the first quarter of FY 2012. 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 and possible country phase-outs, as well as the 

allocation of Volunteers and resources. 

The 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 1, 2, and 5). 
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Findings

Through the Country Portfolio Review completed in FY 2012, the agency found that it is implementing the 

vast majority of its programs in host countries that have a demonstrated need for the Peace Corps’ approach to 

development and have interested host country partners. The review also identified countries that had achieved a 

high level of development, indicating that some country programs could be graduated (closed) to enable the agency 

to focus its limited resources on areas of the world with greater need. 

The review also provided additional data on known operational challenges, including difficult safety and security 

environments in some countries and variations in the level of in-kind and cash contributions from host governments 

to the Peace Corps country programs.

Actions Taken

The Country Portfolio Reviews in FY 2011 and FY 2012 informed the agency’s decision to increase the Volunteer 

population in Africa and to graduate (close) programs in Bulgaria, Romania, Cape Verde, Antigua/Barbuda, and 

St. Kitts/Nevis in FY 2013. 

Data from the Country Portfolio Review also informed the decision to suspend the program in Honduras due to 

the in-country security environment. 

The Peace Corps is working to better align the Country Portfolio Review with the budget formulation process so 

that the results of the review can be used to inform agency resource planning. The agency also instructed posts to 

review in-kind and cash contribution levels. 

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 1 and 2). The agency has 

completed 24 Host Country Impact Studies since FY 2008. Three studies were completed this year—one each in 

El Salvador, Ghana, and Paraguay. More than 400 beneficiaries, counterparts, and host families were interviewed 

in these three studies. 

Begin callout: Peace Corps Volunteers from 11 African countries gathered in 

Senegal for 10 days in late September to share the most effective strategies for 

combating malaria across the continent. Via video conferencing, Volunteers 

engaged some of the world’s foremost authorities on malaria prevention and 

discussed methods to bring the latest research back to their communities. End 

callout.
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Findings

The studies completed in FY 2012 confirmed 

that Volunteers are meeting the Peace Corps 

goals of building local capacity and increasing the 

understanding of Americans on the part of local 

people. The results also showed that respondents felt 

strongly that most of the changes had been sustained 

after the Volunteers left their communities. A unique 

factor of the Peace Corps’ successful approach to local 

development is the day-to-day interaction between 

the Volunteers and the communities in which they 

live, which respondents identified as a key catalyst for 

both mobilizing and sustaining community change. 

•	 Ninety-five percent of the counterparts and 88 

percent of the beneficiaries engaged in daily or 

weekly interaction with Volunteers. 

•	 Seventy-five percent of the counterparts and 83 percent of the beneficiaries reported using the new skills they 

gained in their professional lives on a daily basis. 

•	 Seventy-nine percent of host country individuals reported they had completely or largely sustained the changes 

made as a result of working with the Volunteer.

•	 Ninety-six percent of counterparts and beneficiaries would definitely like another Volunteer to serve in their 

community. 

Actions Taken

In FY 2012, the agency conducted a survey of the posts that participated in earlier Host Country Impact Studies 

to determine how the results have been utilized in their programs. More than half of the posts used the findings 

related to skill transfer, sustainability, and capacity building to refocus or redesign their Volunteer projects and 

activities. When asked how their training programs were changed, 48 percent of posts responded they adjusted 

technical training for Volunteers as a result of insights gained from their Host Country Impact Study.

Posts underscored the importance of sharing the results of the studies with Volunteers. Ninety-one percent of 

posts indicated they had shared the results with their Volunteers. One post noted that information from the Host 

Country Impact Studies can serve to motivate Volunteers, demonstrating that their efforts make a difference in 

people’s lives and are appreciated. 

Host Country Impact Studies are the agency’s primary mechanism for demonstrating the long-term impact of 

Volunteers and, in FY 2012, the agency created short summaries of the studies to make the results more accessible 

to the public. Published studies and the summaries can be found at www.peacecorps.gov/open/evaluations.

Host Country Impact Study Results

Not at all

Not much

Somewhat

Large Amount

Completely

0% 20% 40% 60% 80% 100%

Changes sustained after working with Volunteer

Chart of Host 

C o u n t r y 

Impact Study 

Results.

changes sustained after 

working with 

v o l u n t e e r . 

C om pl e t e l y : 

38 percent. 

Large amount: 

41 percent. 

Somewhat: 15 

percent. Not 

much: 3 percent. Not at all: 

4 percent.
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Begin Text box: Responses from Host Country Impact Study Participants in FY 2012

Local capacity building (Strategic Goal 1)

“I behave differently from what I used to do. Now I believe in consensus building, consultation, and open 

dialogue. I now go in for the problems facing my community rather than wait for the problems to come to 

me.”

—Beneficiary in Ghana

“The Volunteer gave excellent training. On a scale of 1 to 10, I’d rate it a 10. Something that I admire about 

the Volunteers is that they are pragmatic and practical in their style of teaching. I have learned to be more 

efficient in my work as well, and it is a model for me and the school that I direct.”

—Counterpart in El Salvador

Opinions of Americans changed (Strategic Goal 2)

“I had not known about Americans, but because of working with the Volunteer I noted that they are good 

people. He liked to work in groups and help wherever he could.” 

—Beneficiary in Paraguay. End Text box.

Evaluations Conducted by Overseas Posts

Posts conduct evaluations to improve their country programs and increase the impact of their Volunteers (Strategic 

Goals 1, 2, and 3). In FY 2012, 38 percent of posts completed at least one evaluation, including process evaluations 

(28 percent), outcome evaluations (20 percent), impact evaluations (6 percent), and cost benefit analyses (5 percent). 

Process evaluations assessed whether a project was operating as intended and if it was meeting community needs. 

Outcome evaluations described how well a program achieved its intended results. Impact studies provided an 

independent assessment of the agency’s programs to determine whether projects were meeting their intended 

outcomes. Cost benefit analyses assessed the cost of meeting a single goal or objective.

Findings 

Evaluations conducted by posts identified successes and challenges in meeting project objectives. Multiple posts 

cited high satisfaction among local partners regarding the work of the Volunteers. At the same time, posts were 

constrained in collecting impact information from partners. One post noted that projects are informally evaluated 

at partner and community meetings. Another post mentioned that additional work is needed to collect baseline 

data and crafting indicators. Findings from evaluations completed by posts in FY 2012 confirm the need for greater 

monitoring and evaluation resources at overseas posts.

Actions Taken

Posts used information gathered from evaluations to modify their programs and operations to better meet the 

Peace Corps goals. Several posts engaged in project reviews as part of the Focus In/Train Up strategy, resulting 
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in significant changes to programming. For example, a review in the Armenia program resulted in adding a youth 

component in the Community Economic Development sector, better responding to local needs. In the Dominican 

Republic, the education project changed from information technology education to literacy, and the business 

project was modified to focus more on business education rather than organizational development. 

Posts used evaluation findings to: 

•	 Refocus the project or program areas (26 percent)

•	 Redesign training (26 percent) 

•	 Adjust their Integrated Planning and Budget System submission (23 percent)

•	 Redesign the project or program areas (20 percent) 

•	 Redesign the project or program implementation (17 percent)

•	 Discontinue the project or program (9 percent)

Evaluations Conducted by Headquarters Offices

The headquarters offices conducted essential program evaluations in support of Strategic Goals 1, 2, and 3, as well 

as cost-benefit evaluations and operational assessments related to Strategic Goals 4 and 5.

Fifteen headquarters offices (75 percent) conducted over 300 evaluation activities in FY 2012, including process 

evaluations (52 percent), cost-benefit analyses (42 percent), outcome evaluations (5 percent), and impact studies

(1 percent). Examples of evaluation activities completed by headquarters offices are provided below.

Findings and Actions Taken

•	 Annual review of global partnerships: In FY 2012, the agency reviewed seven of its 20 global partnerships. 

The review identified the partnerships that are meeting the needs of the agency as well opportunities for 

improvement. The agency used the information from reviews of partnerships to determine the best use of 

partnership resources and to look for new partnership opportunities.

•	 Analysis of medical evacuations: Volunteers are medically evacuated from their country of service when the 

Peace Corps can no longer fully support their medical needs at post. Analysis showed that medical evacuations 

and consultations from care providers have increased in recent years. As a result, the agency has allocated 

additional resources to support and care for medically evacuated Volunteers. The new medical evacuation 

support team, based at the headquarters in Washington, D.C., meets Volunteers at the airport, ensures they 

receive the care they need, and connects them with local resources. In a survey conducted in FY 2012 of 

medically evacuated Volunteers, 98 percent responded that they were very satisfied with the services provided 

by the agency.

•	 Staging event evaluation: The agency assessed trainees’ satisfaction with their staging event—the domestic 

pre-service orientation for Volunteers as they depart for service. Trainees were highly satisfied, with 94 percent 

noting that they found it helpful. However, participants also reported that they would like more interaction with 

fellow trainees and more country-specific information. The agency has adjusted the staging event curriculum 

to respond to these requests.
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•	 Cost-benefit analyses on delivery of medical care: The agency analyzed several options for delivering 

medical care to Volunteers in a more cost-effective manner. One study compared various malaria-prevention 

options utilizing projected numbers of Volunteers and inflation rates for the calculation of medical costs. The 

agency also evaluated the current policy for post-service schistosomiasis testing. As a result of the evaluation, 

the agency changed the policy and now provides preventative medicine for the condition to Volunteers at the 

end of their service rather than conducting tests after service. 

Begin text box: Small Project Assistance (SPA) Program Evaluation

The agency conducted a major evaluation of the SPA program, a joint collaboration between the Peace 

Corps and the U.S. Agency for International Development (USAID) to support development projects in 

local communities. The evaluation included two components: a survey of Peace Corps and USAID program 

managers on management processes and in-country evaluations of the programs in Senegal and Ukraine.

Program managers indicated a high level of confidence in the effectiveness of the SPA program. The 

management survey revealed that Peace Corps post staff (95 percent of respondents) and USAID mission 

staff (79 percent) believe that SPA projects are both relevant to the community and provide lasting benefits. 

Results from the two country evaluations support the conclusion that SPA projects help to advance local 

development. In Ukraine, 96 percent of the project beneficiaries and partners indicated they both acquired 

and applied new skills or knowledge in their work. Further, 91 percent of the organizations reported they 

continued the project activities after the completion of the project. In the Senegal study, 78 percent of the 

partners interviewed stated their capacity was built through their active involvement in the SPA projects’ 

planning, implementation, and monitoring phases.

 The recommendations from the evaluation were reviewed and incorporated into the new SPA agreement, 

which contains the requirement to promote independent, in-country evaluations of the impact of the 

SPA program. The program will also conduct baseline studies, visit project sites to monitor projects, and 

undertake regional evaluations. End text box.

Audits and Evaluations Conducted by 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 operations and strengthen the 

agency’s ability to implement country programs that increase host country capacity. OIG audits focus on fiscal 

accountability and the effectiveness of internal control over worldwide and domestic Peace Corps resources. OIG 

evaluations analyze the program operations of the Peace Corps at both overseas posts and domestic offices. OIG 

audits and evaluations are submitted to agency management, which then takes appropriate action to address the 

concerns that have been identified. OIG audits and evaluations can be found at www.peacecorps.gov/oig.
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During FY 2012, the OIG issued six audit reports and six evaluation reports concerning 11 country programs. 

The audits were conducted in Costa Rica, Jordan, Lesotho, Mali, and Tonga and a limited scope audit of China 

was conducted from headquarters. These reports covered administrative and financial operations at overseas 

posts. Other OIG FY 2012 audit work included: an audit of the mid-Atlantic regional recruiting office, an audit of 

the Peace Corps budget formulation process, a review of the agency’s compliance with the Federal Information 

Security Management Act, and oversight of the independent auditor’s annual audit of the agency’s financial 

statements. 

OIG country program evaluations were conducted in China, Fiji, Indonesia, Kyrgyz Republic, Peru, and 

Uganda. The program evaluation reports addressed issues such as the extent to which the post has developed 

and implemented programs that met agency goals and provided adequate training, health care, and support 

and oversight to Volunteers to enable them to increase host country capacity and promote cross-cultural 

understanding. During FY 2012, the OIG evaluations unit also issued a report on the impacts of the five-year rule 

on agency operations and a review of the Peace Corps’ implementation of guidelines related to Volunteer victims 

of rape and sexual assault.

Program Evaluations Conducted by Office of Inspector General

Major Findings and Recommendations:

Impacts of the Five-Year Rule on Operations of the Peace Corps

The Five-Year Rule, a personnel rule unique to the Peace Corps, limits staff appointments to a maximum of five 

years. While it has enabled the agency to hire returned Volunteers and prevent employees from making lifelong careers at the agency, it has also created challenges for the agency. The OIG evaluation determined that a 

comprehensive examination of the Five-Year Rule is needed to address the negative effects that excessive employee 

turnover and brief employee tenure have had on the operations of the Peace Corps. The agency is still working to 

address the five recommendations issued in this report.

Review of Peace Corps’ Implementation of Guidelines Related to Volunteer Victims of Rape and Sexual 

Assault

The OIG completed a review of agency guidelines related to response to Volunteer sexual-assault victims and 

reported that the Peace Corps accomplished a number of initiatives in 2011 that addressed concerns raised by 

victims. The agency established a response framework predicated on compassion, safety, open communication, 

and respect for victim privacy and it issued new guidance and provided training for staff. However, the OIG 

determined that Volunteers who reported sexual-assault incidents not classified as a rape or major sexual-assault 

were not consistently receiving the care or support that some of them needed. The report recommended that 

agency guidelines include procedures for response to all sexual assault incidents; that staff roles and resources be 

more clearly described; and that all staff with response roles attend training on the guidelines and protocols. The 

report identified additional steps the agency should take to ensure consistency and accountability in the response 

effort, including establishing a centralized case management system. The agency is working to address the 12 

recommendations issued in this report. 
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China

The OIG evaluation of China included findings and recommendations intended to achieve improvements in the 

following areas:

•	 Remove obstacles that were impeding office communications

•	 Increase the effectiveness of the Volunteer leader program

•	 Clarify Volunteers’ emergency consolidation point locations

•	 Improve the accuracy of Volunteer site locator forms

•	 Increase staff support for the peer support network

Some actions taken by the agency in response to the evaluation include adjusting the Volunteer leaders’ position 

responsibilities and developing a process to select appropriate staff members to serve on a Volunteer support 

committee.

Fiji

The OIG evaluation of Fiji included findings and recommendations intended to achieve improvements in the 

following areas:

•	 Develop stronger relationships with government partners and ensure the country agreement is up-to-date

•	 Provide improved technical training, particularly for small business Volunteers

•	 Improve consistency in post leadership’s actions and the timeliness and transparency of decisions

•	 Provide additional emotional and mental-health support for Volunteers

•	 Prepare Volunteers for weather-related emergencies

•	 Adhere to the post’s health and safety criteria for Volunteer housing

•	 Increase medical officers’ participation in Volunteer site development

Some of the many actions taken by the agency in response to the evaluation include implementing improvements 

to the post’s site identification and approval system, which now includes more involvement from medical officers; 

creating a photo file to help ensure that housing criteria are met; conducting staff development training focused on 

Volunteer support; and requiring Volunteers to develop a personal safety plan after arriving at their site.
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Indonesia

The OIG evaluation of Indonesia included findings and recommendations intended to achieve improvements in 

the following areas:

•	 Provide new country entry and re-entry posts with adequate time to ensure important health- and safetyrelated activities are completed before trainees arrive

•	 Differentiate programming staff responsibilities 

•	 Improve technical and secondary local language training

•	 Prepare Volunteers to respond to emergencies when cell phones may not be operable

•	 Ensure Volunteers are aware of their emergency consolidation point locations

•	 Distribute important emergency action plan (EAP) updates to staff and Volunteers

In response to the report, the agency is reviewing new country entry procedures and timelines to ensure that key 

Volunteer health and safety activities are completed before trainees arrive in-country. The post has reviewed 

staff positions to clarify duties, and it has hired additional training staff who began implementation of a new core 

curriculum for its technical training program.

Kyrgyz Republic

The OIG evaluation of Kyrgyz Republic included findings and recommendations intended to achieve improvements 

in the following areas:

•	 Increase staff’s participation in the EAP revision process and their understanding of EAP roles and 

responsibilities

•	 Prepare staff and Volunteers to respond to a variety of emergency situations, including earthquakes and events 

that interrupt telephone communications 

•	 Encourage Volunteers to complete intended community integration activities

•	 Improve the timeliness and usefulness of staff’s feedback on Volunteer performance reports 

•	 Assist Volunteers in identifying viable work partners

•	 Conduct more effective budgeting and resource planning

•	 Improve staff morale by reviewing statements of work and pay grades

•	 Address deficiencies in grants management
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Since the completion of the evaluation, the post has conducted an EAP training session for staff, provided additional 

training for Volunteers on the agency’s performance reporting tool, and implemented earthquake training. 

Peru

The OIG evaluation of Peru included findings and recommendations intended to achieve improvements in the 

following areas:

•	 Ensure that Volunteers are placed in sites where they can achieve their project goals

•	 Improve technical and language training

•	 Adhere to the post’s health and safety criteria for Volunteer housing

•	 Ensure that Volunteers are aware of their emergency consolidation points

•	 Develop and utilize site criteria that sufficiently consider travel-related risks for Volunteers

In response to the evaluation, the post conducted a thorough review of the accessibility of Volunteers’ sites and 

closed sites that presented an unacceptable level of travel risk. The post also updated its site development manual 

to include programmatic site selection criteria and adjusted the timing of site assignments so Volunteers could 

receive more site-specific training.

Uganda

The OIG evaluation of Uganda included findings and recommendations intended to achieve improvements in the 

following areas:

•	 Stabilize post operations after a period of leadership turnover

•	 Ensure that Volunteers are aware of their emergency consolidation points

•	 Develop stronger relationships with project stakeholders and communicate annual project progress to them

•	 Improve technical training

•	 Ensure the post has an up-to-date medical evacuation plan that is understood by staff

•	 Bring the post into compliance with agency safety and security policies

•	 Develop and utilize site criteria that sufficiently consider the availability of post-approved transportation 

options
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•	 Improve organization of the education project

•	 Increase the medical officers’ participation in site identification and site visits

In response, the agency provided headquarters support that helped the post develop a strategy to improve 

operations programming. The post also adopted a new pre-service training model, modified technical training, 

and developed a process to ensure that Volunteers are aware of their emergency consolidation point and have 

experience traveling to that location.

A photo of an Environment Volunteer reviewing 

diving charts with a local sport diving crew 

member to inspect a nearby coral reef in Belize.
This page was intentionally left blank
A photo of a Health Volunteer giving computer lessons to youth as secondary project in Senegal.

FINANCIAL SECTION
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Message from the Chief Financial Officer

For the sixth consecutive year, an unqualified (clean) audit opinion on the financial statements was issued by 

independent auditors, CliftonLarsonAllen. No material weaknesses or federal system noncompliances were 

identified during the financial statement audit or through management reviews within the agency. 

Quality reporting in the FY 2011 Performance and Accountability Report earned the agency its fifth award of the 

prestigious Association of Government Accountants’ Certificate of Excellence in Accountability Reporting. 

This year the agency received its annual appropriation of $375 million during the first fiscal quarter 

and operated with a far more level funding stream despite receiving $25.8 million less than the FY 2010 

funded level. The FY 2011 appropriation was $374.3 million. Some system initiatives completed this year, 

notably DOVE (Database of Volunteer Experience) and MAXx (Medical Application Exchange System), 

continued important steps toward fully updating the Volunteer Delivery System. These systems manage the 

outreach, recruitment, evaluation, placement, support and return of the Volunteers, and handle the medical 

requirements for pre-service applicants. The relative steady funding stream of these last two years minimized 

the ramping up and down in the number of Volunteers, helping to limit the volatility in the recruitment 

systems that require long lead times.

We processed more than 400 thousand financial transactions in 77 currencies in 76 countries during FY 2012 to 

support the more than 8,000 Volunteers. Each year, the financial management staff in the headquarters and those 

supporting financial management throughout the three regions and the worldwide posts continue their tireless 

efforts to ensure that the Volunteers are fully supported in their work efforts within the local communities around 

the world. 

During this fiscal year, agency managers worked to correct the two significant deficiencies in internal control and 

the 26 associated audit recommendations identified during the FY 2011 financial statement audit through Senior 

Assessment Team meetings and monitoring the corrective action plan. The agency’s property accountability 

system deployed in late FY 2011 continues to experience operational and accountability issues in working 

toward gaining agencywide control over the $35 million Property, Plant, and Equipment assets. Progress on 

the corrective action plan and implementing the new system was not sufficient to resolve the two significant 

deficiencies in Property, Plant, and Equipment and Information System Security which remain open following 

the FY 2012 audit. 

The 24 outstanding audit recommendations associated with these two significant deficiencies and their currently 

projected completion dates are shown in Appendix 1, Audit Significant Deficiencies. Those unresolved audit 

recommendations carried over from prior years are also identified in the Appendix.

Financial management improvements implemented during FY 2012 included the following:

•	 Converting 100 percent of the African posts to electronic funds transfer

•	 Implementing a “Do Not Pay” program in compliance with U.S. Treasury regulations in conjunction with the 

Office of Acquisitions and Contract Management to identify prohibited vendors and ensure no business is 

conducted with excluded vendors
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 101

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•	 Decommissioning the Electronic Certification System for the processing of overseas payments to Volunteers 

and vendors as required by the U.S. Department of State 

•	 Reassessing and strengthening agency accounts payable and receivables processes at the post level to ensure 

the accurate and prompt collection of debts

•	 Implementing a strengthened encryption and transmission application for all overseas transactions to allow for 

greater security and data protection for all payments

•	 Consolidating the accounts receivable and cash management functions to include collections, eliminating the 

need for one director position

•	 Making greater use of the agency’s budget formulation and financial analysis software, Hyperion Planning, 

resulting in significantly improved analytics, forecasting, and allocation of scarce agency resources

•	 Completing the rollout of the application for posts and the Office of Safety and Security to track employment 

security certifications

•	 Recovering $9.6 million through open obligation reviews by closing or adjusting obligations in current and 

expired funds

Beginning in FY 2013, the recently implemented DOVE system will allow the extraction of important information—

personal contact information, Next of Kin, Emergency Contacts, Life Insurance, and Savings Bonds—directly 

from the Volunteers’ applications, eliminating the previous manual keying process and potential duplicate entries 

and keying errors.

When the annual 2012 W-2s are issued to the Volunteers, all taxable allowance information will be included for 

the first time. This eliminates the requirement for the Volunteers to manually calculate portions of their taxable 

income for federal and state taxes.

The agency’s budget formulation and financial analysis software, Hyperion Planning, developed and implemented 

over the past two fiscal years to manage the agency’s appropriated funding is being expanded to cover the 

President’s Emergency Plan for AIDS Relief (PEPFAR) funding. When the project is completed this next fiscal 

year, the FY 2013 Implementation Plans for PEPFAR will be submitted to the U.S. Global AIDS Coordinator of the 

Department of State and the posts’ financial operations will be improved by reporting, analyzing, and managing 

projections of multiple funds through a single financial system.

A new personal services contractor application was completed in FY 2012, and worldwide deployment is planned 

in FY 2013, allowing posts to enter contractor data at their locations, automatically computing payroll elements, 

and eliminating error-prone manual re-entry at the headquarters. This application will allow online approval in 

the headquarters, improving the efficiency and transparency of the contractor payment process. As with other 

financial system applications implemented at the Peace Corps, internal control requirements were evaluated and 

included in the system design to ensure automated compliance of internal control processes to the maximum 

extent possible.
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We have laid out solid steps to achieve the administration’s directed savings in agency operations related to 

conferences and travel during FY 2013. Those savings will improve the transparency of and accountability for 

spending this next fiscal year and will further reduce any wasteful spending, if found. 

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. Consistent with the Inspector General’s Peace Corps Budget 

Formulation Process audit conducted in FY 2012, studies are underway to assess the feasibility of more closely 

linking performance and budgeting through cost allocation if proven to be cost effective. Accurate correlation of 

actual costs with applied overhead to the strategic goals and outputs remains unachievable without capturing 

significantly more granular direct costs and implementing indirect cost allocation models within the financial 

system for cost-stratification purposes.

Audited financial statements and notes that follow in this section are reliable and complete and were prepared in 

accordance with generally accepted accounting principles for federal government entities.

Moving forward, we will continue to seek new improvements in financial management and will work harder 

toward resolving outstanding significant audit deficiencies.

 Joseph L. Hepp, Jr.

Chief Financial Officer

November 15, 2012
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 103

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Financial Statements

Peace Corps

Balance Sheet

As of September 30, 2012 and 2011

(In Thousands)

2012 2011

Assets

Intragovernmental

Fund Balance With Treasury (Note 2 and 3) $ 180,689 $ 175,205

Accounts Receivable (Note 4) 2,324 1,336

Total Intragovernmental 183,013 176,541

Accounts Receivable, Net (Note 4) 221 72

General Property, Plant, and Equipment, Net (Note 5) 35,176 43,888

Other

Prepaid Volunteer Living Allowances (Note 6) 2,220 3,106

Other Assets (Note 7) 3,369 2,835

Subtotal Other 5,589 5,941

Total Assets $ 223,999 $ 226,442

Liabilities

Intragovernmental 

Accounts Payable $ 1,544 $ 2,937

Other

Unfunded FECA Liability (Note 8) 30,558 30,737

Other Liabilities (Note 9) 429 785

Subtotal Other 30,987 31,522

Total Intragovernmental 32,531 34,459

Accounts Payable 10,559 7,091

Federal Employee and Veterans Benefits (Note 8) 139,531 133,121

Other

Other Employment Related Liability (Note 8) 4,660 11,573

Non-Entity Funds (Note 2) 55,739 53,904

Accrued Funded Payroll and Leave 5,762 6,786

Unfunded Annual Leave (Note 8) 9,415 9,136

Other Liability (Note 9) 820 770

Subtotal Other 76,396 82,169

Total Liabilities 259,017 256,840

Commitments and Contingencies (Note 10)

Net Position

Unexpended Appropriations 103,531 97,955

Cumulative Results of Operations (138,549) (128,353)

Total Net Position $ (35,018) $ (30,398)

Total Liabilities and Net Position $ 223,999 $ 226,442

The accompanying notes are an integral part of these statements
104 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Peace Corps

Statement of Net Costs

For the Years Ended September 30, 2012 and 2011

(In Thousands)

2012 2011

Program Costs:

Gross Costs $ 392,669 $ 395,293

Less: Earned Revenue (Note 11) 6,969 5,033

Net Cost of Operations $ 385,700 $ 390,260

The accompanying notes are an integral part of these statements
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 105

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Peace Corps

Statement of Changes in Net Position

For the Years Ended September 30, 2012 and 2011

(In Dollars)

The accompanying notes are an integral part of these statements

2012 2011

Cumulative Results of Operations:

Beginning Balances $ (128,353) $ (142,436)

Budgetary Financing Sources:

Appropriations Used 368,702 397,809

Donations and Forfeitures of Cash and Cash Equivalents 41 -

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property (81) 170

Transfers-In/Out Reimbursement 990 (154)

Imputed Financing (Note 16) 5,852 6,518

Total Financing Sources 375,504 404,343

Net Cost of Operations 385,700 390,260

Net Change (10,196) 14,083

Cumulative Results of Operations (138,549) (128,353)

Unexpended Appropriations:

Beginning Balances 97,955 121,532

Budgetary Financing Sources:

Appropriations Received 375,000 375,000

Other Adjustments (722) (767)

Appropriations Used (368,702) (397,810)

Total Budgetary Financing Sources 5,576 (23,577)

Total Unexpended Appropriations 103,531 97,955

Net Position $ (35,018) $ (30,398)

Peace Corps

Statement of Changes in Net Position

For the Years Ended September 30, 2012 and 2011

(In Thousands)

2012 2011

Cumulative Results of Operations:

Beginning Balances $ (128,353) $ (142,436)

Budgetary Financing Sources:

Appropriations Used 368,702 397,809

Donations and Forfeitures of Cash and Cash Equivalents 41 -

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property (81) 170

Transfers-In/Out Reimbursement 990 (154)

Imputed Financing (Note 16) 5,852 6,518

Total Financing Sources 375,504 404,343

Net Cost of Operations 385,700 390,260

Net Change (10,196) 14,083

Cumulative Results of Operations (138,549) (128,353)

Unexpended Appropriations:

Beginning Balances 97,955 121,532

Budgetary Financing Sources:

Appropriations Received 375,000 375,000

Other Adjustments (722) (767)

Appropriations Used (368,702) (397,810)

Total Budgetary Financing Sources 5,576 (23,577)

Total Unexpended Appropriations 103,531 97,955

Net Position $ (35,018) $ (30,398)

The accompanying notes are an integral part of these statements

Peace Corps

Statement of Changes in Net Position

For the Years Ended September 30, 2012 and 2011

(In Thousands)

2012 2011

Cumulative Results of Operations:

Beginning Balances $ (128,353) $ (142,436)

Budgetary Financing Sources:

Appropriations Used 368,702 397,809

Donations and Forfeitures of Cash and Cash Equivalents 41 -

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property (81) 170

Transfers-In/Out Reimbursement 990 (154)

Imputed Financing (Note 16) 5,852 6,518

Total Financing Sources 375,504 404,343

Net Cost of Operations 385,700 390,260

Net Change (10,196) 14,083

Cumulative Results of Operations (138,549) (128,353)

Unexpended Appropriations:

Beginning Balances 97,955 121,532

Budgetary Financing Sources:

Appropriations Received 375,000 375,000

Other Adjustments (722) (767)

Appropriations Used (368,702) (397,810)

Total Budgetary Financing Sources 5,576 (23,577)

Total Unexpended Appropriations 103,531 97,955

Net Position $ (35,018) $ (30,398)

The accompanying notes are an integral part of these statements
106 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Peace Corps

 Statement of Budgetary Resources

For the Years Ended September 30, 2012 and 2011

(In Thousands)

2012 2011

Budgetary Resources:

Unobligated Balance, Brought Forward, Oct 1 $ 51,089 $ 58,532

Recoveries of Prior Year Unpaid Obligations 9,590 12,594

Other Changes in Unobligated Balance (+ or -) (709) (20)

Unobligated Balance from Prior Year Budget Authority, Net 59,970 71,106

Appropriations (Discretionary and Mandatory) 375,000 374,250

Spending Authority from Offsetting Collections (Discretionary and Mandatory) 18,091 6,323

Total Budgetary Resources $ 453,061 $ 451,679

Status of Budgetary Resources:

Obligations Incurred (Note 12 ) $ 386,590 $ 400,590

Unobligated Balance, End of Year:

Apportioned 58,968 46,240

Exempt from Apportionment 41 -

Unapportioned 7,462 4,849

Total Unobligated Balance, End of Year 66,471 51,089

Total Budgetary Resources $ 453,061 $ 451,679

Change in Obligated Balance:

Unpaid Obligations, Brought Forward, Oct 1 (Gross) $ 71,165 $ 90,315

Uncollected Customer Payments from Federal Sources, Brought Forward, Oct 1 (-) (1,233) (1,026)

Obligated Balance, Start of Year (Net), Before Adjustments (+ or -) 69,932 89,289

Obligations Incurred 386,590 400,590

Outlays (Gross) (-) (379,287) (407,145)

Change in Uncollected Customer Payments from Federal Sources (+ or -) (9,138) (207)

Recoveries of Prior Year Unpaid Obligations (-) (9,590) (12,594)

Obligated Balance, End of Year 

Unpaid Obligations, End of Year (Gross) 68,878 71,165

Uncollected Customer Payments from Federal Sources, End of Year (-) (10,371) (1,233)

Obligated Balance, End of Year (Net) $ 58,507 $ 69,932

Budget Authority and Outlays, Net:

Budget Authority, Gross (Discretionary and Mandatory) $ 393,091 $ 380,574

Actual Offsetting Collections (Discretionary and Mandatory) (-) (8,953) (6,116)

Change in Uncollected Customer Payments from Federal Sources

 (Discretionary and Mandatory) (+ or -) (9,138) (207)

Budget Authority, Net (Discretionary and Mandatory) $ 375,000 $ 374,251

Outlays, Gross (Discretionary and Mandatory) $ 379,287 $ 407,145

Actual Offsetting Collections (Discretionary and Mandatory) (-) (8,953) (6,116)

Agency Outlays, Net (Discretionary and Mandatory) $ 370,334 $ 401,029

The accompanying notes are an integral part of these statements

Peace Corps

Statement of Changes in Net Position

For the Years Ended September 30, 2012 and 2011

(In Dollars)

The accompanying notes are an integral part of these statements

2012 2011

Cumulative Results of Operations:

Beginning Balances $ (128,353) $ (142,436)

Budgetary Financing Sources:

Appropriations Used 368,702 397,809

Donations and Forfeitures of Cash and Cash Equivalents 41 -

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property (81) 170

Transfers-In/Out Reimbursement 990 (154)

Imputed Financing (Note 16) 5,852 6,518

Total Financing Sources 375,504 404,343

Net Cost of Operations 385,700 390,260

Net Change (10,196) 14,083

Cumulative Results of Operations (138,549) (128,353)

Unexpended Appropriations:

Beginning Balances 97,955 121,532

Budgetary Financing Sources:

Appropriations Received 375,000 375,000

Other Adjustments (722) (767)

Appropriations Used (368,702) (397,810)

Total Budgetary Financing Sources 5,576 (23,577)

Total Unexpended Appropriations 103,531 97,955

Net Position $ (35,018) $ (30,398)
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 107

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Note 1 Significant Accounting Policies

a) Reporting Entity

The Peace Corps was initially established by President John F. Kennedy pursuant to Executive Order 10924 on

March 1, 1961, and was subsequently formalized by the Peace Corps Act of 1961. The Peace Corps is an 

independent agency within the executive branch of the United States government. 

The core mission of the Peace Corps is to promote world peace and friendship by making available to interested, 

less developed countries men and women of the United States qualified for service abroad and willing to serve, 

even under conditions of hardship if necessary. The Peace Corps’ goals are to help the people of interested 

countries in meeting their need for trained men and women; to help promote a better understanding of Americans 

on the part of the peoples served; and to help promote a better understanding of other peoples on the part of 

Americans. 

b) Basis of Presentation

The financial statements present the financial position, the net cost of operations, and changes in net position,

along with budgetary resources activities of the agency pursuant to the requirements of 31 U.S.C. 3515 (b). They 

have been prepared using Peace Corps’ books and records in accordance with agency accounting policies, the most 

significant of which are summarized in this note. The statements are in addition to the financial reports used to 

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

presented in accordance with the applicable form and content requirements of OMB Circular A-136, Financial 

Reporting Requirements, issued August 2012. The statements should be read with the realization that they are for a 

component of the U.S. government, a sovereign entity.

The Peace Corps’ accounting policies follow Federal Accounting Standards Advisory Board standards and other 

generally accepted accounting principles for the United States federal government. 

The financial statements are subdivided in two categories: intragovernmental and public. The intragovernmental 

balances, revenues, and costs reflect financial transactions between the Peace Corps and other federal agencies. 

Public activities are those with non-governmental customers, including Volunteers, contributors, employees, 

contractors, and vendors. 

c) Basis of Accounting 

Accounting principles encompass both accrual and budgetary transactions. Under the accrual method, revenues are 

recognized when earned and expenses are recognized when a liability is incurred, without regard to receipt or 

payment of cash. Under the budgetary basis, however, fund availability is recorded based upon legal 

considerations and constraints. The agency receives financing sources through direct appropriations from the 

general fund of the U.S. Treasury and offsetting collections to support its operations. ―Appropriations used‖

recognizes that appropriation authority has been applied against received goods and services.

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 the Financial Statements
108 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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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 government that are not earmarked by 

law for a specific purpose and used to fund agency operations and capital expenditures.

Special or Trust Funds—These funds consist of receipts and expenditures by the government for carrying out 

specific purposes and programs in accordance with terms of the statute that designates the fund as a special fund or 

trust fund. The balances in the agency’s trust funds are non-entity assets and are included in the financial 

statements.

Deposit Funds—These funds consist of monies held temporarily by the Peace Corps as an agent for others. These 

include allowance and allotment accounts for employees and Volunteers. The balances in these funds are 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.

e) Budget Authority

Congress annually passes multi-year appropriations that provide the agency with authority to obligate funds over a 

two-year period for necessary expenses to carry out operations. After the right to create new obligations has 

expired, this two-year budget authority is available for five additional years for adjusting obligations and for 

completing the liquidation of open obligations, advances, and receivables. After the five-year period, all open 

transactions for the respective fiscal year will be cancelled and funds will be returned to the U.S. Treasury. Any 

valid claims associated with these funds after closure must be processed against current year funds. 

In addition, Congress enacts no-year appropriations that are available until expended. All appropriations are 

subject to OMB apportionment as well as Congressional restrictions. The agency places internal restrictions to 

ensure the efficient and proper use of all funds. 

f) Revenues and Other Financing Sources

Peace Corps’ operations are financed through appropriations, proceeds from the sale of property, and 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

The Fund Balance with the U. S. Treasury consists of appropriated funds that are available to pay current liabilities 

and finance authorized purchase commitments, and special funds that periodically are direct-financing 

reimbursements to the appropriated funds. 

The agency does not maintain cash in commercial bank accounts for the funds reported in the balance sheet. All 

cash receipts and disbursements are processed by the U.S. Treasury or the Department of State (DOS).

The funds that make up post cashiers’ imprest funds belong to the U.S. Treasury through DOS’s accountability. 

These funds are routinely used to pay for small-value purchases of goods and services and are also used to make 

an occasional emergency payment. Per agreement with DOS, the Peace Corps is responsible for paying for any 

losses incurred by the cashiers that would normally fall on the account holder. All international payments made by 

DOS on behalf of the Peace Corps are charged to the Peace Corps and reduce the applicable Peace Corps’

appropriation unexpended balance in U.S. Treasury records. As of September 30, 2012, cashier imprest funds 

represented by cash on hand, checks on hand, interim advances, and cashier checking account balances totaled 

approximately $1.1 million in U. S. dollar equivalents.

Fund balance with Treasury is carried forward until such time as goods or services are received and payment is 

made, or until the funds are returned to the U.S. Treasury.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 109

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h) Foreign Currency 

Accounting records for the agency are maintained in U.S. dollars, while a significant amount of the overseas 

expenditures are in foreign currencies. For accounting purposes, overseas obligations and disbursements are 

recorded in U.S. dollar equivalents, based on the budgeted rate of exchange as of the date of the transaction. 

Foreign currency payments are made by the U.S. disbursing officers located at the Department of State Financial 

Service Centers in Charleston, South Carolina, and Bangkok, Thailand. 

i) Accounts Receivable

Accounts receivable includes amounts due from other federal entities and from current and former employees and 

Volunteers. Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established 

for material amounts of nonfederal (public) debt exceeding $30,000. The agency recognizes an Allowance for 

Doubtful Accounts when it is determined that the amounts are more likely than not to be totally uncollected. 

Accounts with approved payment plans in place and for which the debtor is meeting the terms of the plan are 

exceptions to this write-off policy.

j) Advances and Prepayments

Payments in advance of the receipt of goods and services are recorded as advances and recognized as expenses 

when the related goods and services are received. Advances are made principally to agency employees for official 

travel and prepayments to Volunteers for living allowances. 

Pursuant to Section 5(b) of the Peace Corps Act, Peace Corps Volunteers are entitled to a living allowance in order 

that they may serve effectively and safely overseas. Living allowances are paid to Volunteers to provide support 

while in their country of assignment. Allowances are based on local living standards and costs, including food, 

clothing, household items, rent, utilities, and local transportation. 

k) Property, Plant, and Equipment (PP&E)

The agency capitalizes property, plant, and equipment that has an individual acquisition cost of $25,000 or greater, 

a useful life of two years or more, 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. 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). 

Vehicles in the amount of $10,000 and over are capitalized. Acquisitions that do not meet these criteria are 

recorded as operating expenses. Assets are capitalized at historical cost and depreciated using the straight-line 

method. The agency has established a policy that uses an estimated salvage value of 40 percent for the agency’s

vehicles based on their resale value in recent years.

Nonexpendable personal property is depreciated over three to 15 years. The agency operates land, buildings, and 

equipment that are provided by the General Services Administration and overseas. Rent for General Services 

Administration property is expensed. Deferred maintenance amounts are immaterial with respect to the financial 

statements. 

l) Accounts Payable and Other Liabilities

Liabilities represent the amount of monies or other resources that are likely to be paid as the result of a transaction 

or event that has already occurred. Liabilities classified as not covered by budgetary resources are liabilities for 

which appropriations have not been enacted.

m) Employee Benefits

I. Federal Employees’ Compensation Act (FECA) Accrued Claims—FECA provides income and medical cost 

protection to covered federal civilian employees injured on the job, to employees who have incurred 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 

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.
110 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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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 government plans in compliance with the host country’s local laws and regulations.

The Peace Corps recognizes its share of the cost of providing future pension benefits to eligible employees 

throughout their period of employment. The pension expense not covered by budgetary resources is calculated 

using actuarial factors provided by OPM and is considered imputed cost to the agency.

VII. Valuation of Host Country Resident Personal Services Contractor Severance and Retirement Liability—The 

Peace Corps is generally liable for separation or retirement payments to eligible host country resident personal 

services contractors (PSCs) in countries that require payments under local labor laws. Until systems are in place 

to track this liability in a timely manner, the estimate of the current and future costs of the severance and 

retirement liability is determined annually.

n) Commitments and Contingencies

The agency is involved in various administrative proceedings, legal actions, and claims arising in the ordinary 

course of business. Contingencies are recognized as a liability when a future outflow or other sacrifice of resources 

is probable and measurable.

o) Use of Estimates

The preparation of financial statements required management to make some estimates and assumptions that affect 

the reported amount of assets and liabilities, the disclosure of contingent liabilities at the date of the financial 

statements, and the amount of revenues and costs reported during the period. Actual results could differ from those 

estimates.

p) Interest on Late Payments

Occasionally, the agency incurs interest penalties on late payments. Such interest penalties are paid to the 

respective vendor in accordance with the guidelines mandated by the Prompt Payment Act, P.L. 97–177, as 

amended.

q) Intragovernmental Net Costs 

The Statement of Net Cost is consolidated for the agency using a budget functional classification code. This code 

is used to classify budget resources presented in the budget of the United States government per OMB. 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. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 111

FINANCIAL SECTION

r) Adjustments to Maintain Inherent Account Relationship Integrity

In order to correct the relationships between the proprietary and budgetary accounts, a high-level analysis was 

performed. Cash balances were adjusted to align with the U.S. Treasury fund balance to permit the agency to pass 

edit checks and submit FACTS II reports to Treasury. All of the adjustments for fiscal year 2012 were immaterial.

s) Allocation Transfer

The Peace Corps is a party to allocation transfers with the Department of State as a receiving (child) entity. 

Allocation transfers are legal delegations by one agency of its authority to obligate budget authority and outlay 

funds to another agency. A separate fund account (allocation account) is created in the U. S. Treasury as a subset 

of the parent fund account (Department of State) for tracking and reporting purposes. All allocation transfers of 

balances are credited to this account, and subsequent obligations and outlays incurred by the child entity (Peace 

Corps) are charged to this allocation account as they execute the delegated activity on behalf of the parent entity. 

All financial activity related to these allocation transfers (e.g., budget authority, obligations, and outlays) is 

reported in the financial statements of the parent entity, from which the underlying legislative authority, 

appropriations, and budget apportionments are derived.

t) Fiduciary Activities

Fiduciary activities consist of Host Country Contributions provided to the Peace Corps by the host country 

government which are accepted under the authority of Section 22 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.

Note 2 Non-Entity Assets

Non-entity assets are composed of trust fund, special fund, 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 non-governmental. 

Non-Entity Assets 

Trust Fund

FSN Separation Liability Trust Fund $ 5,396 $ 6,972

Special Fund

Host Country Residents Contractors Separation Liability Fund 22,600 18,140

Deposit Funds

Volunteer Readjustment Allowance 26,724 27,712

Clearing Accounts 1,019 1,080

Total Non-Entity Assets 55,739 53,904

Total Entity Assets 168,260 172,538

Total Assets $ 223,999 $ 226,442

September 30, 2012

(In Thousands)

September 30, 2011

(In Thousands)

Trust Fund—The FSN Separation Liability Trust Fund represents the estimated accrued liability for separation pay

(based on local labor law) of the FSN employees.

Special Fund—Host Country Residents Contractor Separation Liability Fund represents the estimated accrued 

liability for separation pay (based on local labor law) of the personal services contractors. 

Deposit 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. The Volunteer payroll allotment account 

reflects the value of held U. S. government bonds purchased by the Volunteers through allotments from the 

readjustment allowance. The bonds allow the Volunteers to earn interest on their earnings while in service overseas.

Clearing Accounts—The proceeds of sales funds represent cash received from the sale of assets, primarily vehicles, 

and are available to be reinvested in a like-kind replacement purchase (e.g., proceeds from vehicle sales used to 

purchase replacement vehicles).
112 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Note 3 Fund Balance with Treasury

Fund Balances

Appropriated Funds $ 124,950 $ 121,301

Total Non-Entity Assets (Note 2) 55,739 53,904

Total $ 180,689 $ 175,205

Status of Fund Balance with Treasury

Unobligated Balance

Available $ 58,968 $ 46,240

Unavailable 7,462 4,849

Obligated Balance Not Yet Disbursed 58,520 70,212

Non-Budgetary Fund Balance with Treasury 55,739 53,904

Total $ 180,689 $ 175,205

September 30, 2012

 (In Thousands)

September 30, 2012

 (In Thousands)

 (In Thousands) 

September 30, 2011

September 30, 2011

 (In Thousands)

The Fund Balance with Treasury is equal to the unobligated balance of funds plus the obligated balance not yet 

disbursed.

Available Unobligated Balance—Composed of apportionments available for allotment plus allotments available for 

obligation or commitment.

Unavailable Unobligated Balance—Composed of unapportioned authority plus unobligated appropriation authority 

from prior years that is no longer available for new obligations. This latter authority is only available for adjustments to 

existing obligations.

Note 4 Accounts Receivable, Net

Accounts Receivable as of 

September 30, 2012

(In Thousands)

Intragovernmental $ 2,324 $ - $ 2,324 

Other 221 - 221 

Total $ 2,545 $ - $ 2,545 

Accounts Receivable as of 

September 30, 2011

(In Thousands)

Intragovernmental $ 1,336 $ - $ 1,336 

Other 72 - 72 

Total $ 1,408 $ - $ 1,408 

Accounts

Receivable,

Gross

Accounts

Receivable,

Net

Allowance for

Doubtful 

Accounts

Accounts

Receivable,

Gross

Allowance for

Doubtful 

Accounts

Accounts

Receivable,

Net

Intragovernmental receivables are due from other federal agencies for services provided per reimbursable 

agreements.

Other accounts receivable are due from nonfederal entities, consisting primarily of receivables from employees.

Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established for material 

amounts exceeding $30,000. The agency recognizes an Allowance for Doubtful Accounts when it is determined that 

the amounts of nonfederal (public) debts are more likely than not to be totally uncollected. An allowance was not

required by the agency as of September 30, 2012, since the threshold was not exceeded.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 113

FINANCIAL SECTION

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 

Components of Fixed Assets as of 

September 30, 2011

(In Thousands)

Useful

Life

in Years

Land $ 83 $ - $ 83 

Buildings 10 234 10 224 

Construction in Progress 10,798 - 10,798 

General Property, Plant, and Equipment 5–10 4,240 1,374 2,866 

Vehicles 5 22,767 7,598 15,169 

IT Hardware 3–15 16,406 9,898 6,508 

Leasehold Improvements 10 402 221 181 

Internal-Use Software in Development 248 - 248 

Internal-Use Software 3–9 33,722 25,911 7,811 

Total $ 88,900 $ 45,012 $ 43,888 

Cost Net Book Value

Note 5 General Property, Plant, and Equipment, Net

Cost Net Book Value Accumulated 

Depreciation

Accumulated 

Depreciation

As of September 30, 2012, 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 eight regional offices, and the overseas posts. Values for all assets other than internally developed software were 

obtained from data extracted from the databases. Values for internally developed software were derived from the most 

reliable available data for each system. Peace Corps acquired land and building in Swaziland during FY 2010.

Renovation of the headquarters building classified as Construction in Progress in FY 2011 has been completed and 

capitalized as Leasehold Improvements in FY 2012. There are no restrictions on the use or convertibility of General 

Property, Plant, and Equipment owned by the Peace Corps.

Prepaid Volunteer Living Allowances $ 2,220 $ 3,106

Note 6 Prepaid Volunteer Living Allowances

September 30, 2012

 (In Thousands)

September 30, 2011

 (In Thousands)

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.
114 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

FINANCIAL SECTION

Travel Advances to Employees $ 442 $ 382

Relocation Advances to Employees 2 35

Prepaid Rent 2,855 2,418

Other Advances 70 -

Total Other Assets $ 3,369 $ 2,835

Note 7 Other Assets

September 30, 2012

 (In Thousands)

September 30, 2011

 (In Thousands)

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.

Intragovernmental Liabilities

Unfunded FECA Liability $ 30,558 $ 30,737

Liabilities

Unfunded Annual Leave 9,415 9,136

Unfunded Employment-Related Liability 4,660 11,573

Federal Employee and Veterans Benefits 139,531 133,121

Total Liabilities Not Covered by Budgetary Resources $ 184,164 $ 184,567

Note 8 Liabilities Not Covered by Budgetary Resources

 (In Thousands) (In Thousands)

September 30, 2012 September 30, 2011

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, 2012. 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 183 Foreign Service Nationals and 1,944 Foreign 

National PSCs working for the Peace Corps at the end of the fiscal year. 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.

Intragovernmental 

Advances from Others $ 429 $ 785

Other Liabilities

Contingent Liability-General Counsel Cases 820 770

Total Other Liabilities $ 1,249 $ 1,555

Note 9 Other Liabilities

 (In Thousands)

September 30, 2012 September 30, 2011

 (In Thousands)

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).
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 115

FINANCIAL SECTION

Note 10 Commitments and Contingencies

In the opinion of the management and legal counsel, the agency is liable for contingent liabilities related to 

administrative proceedings, legal actions, or claims that are probable and measurable in the amount of $820,000 as of 

September 30, 2012. 

Disclosure is required if there is a reasonable possibility that a loss may be incurred. The likelihood of a reasonable 

possibility of a loss related to administrative proceedings, legal actions, or claims is estimated to be $450,000 as of 

September 30, 2012.

Intragovernmental Earned Revenues $ 6,762 $ 4,671

Earned Revenues from the Public 207 362

Total Exchange Revenues $ 6,969 $ 5,033

Note 11 Exchange Revenue

September 30, 2012 September 30, 2011

 (In Thousands) (In Thousands)

Exchange revenues represent revenue from services provided. This includes reimbursable agreements from other 

government agencies such as U.S. Agency for International Development sponsored HIV/AIDS education, 

prevention, and mitigation activities; and umbrella programs covering environment, health, youth, micro-enterprise,

and Small Project Assistance technical assistance.

Note 12 Apportionment Categories of Obligations Incurred: Direct vs. Reimbursable

Category A $ 379,110 $ 7,480 $ 395,309 $ 5,281

Total Obligations Incurred $ 379,110 $ 7,480 $ 395,309 $ 5,281

 Direct Reimbursable Direct Reimbursable

September 30, 2012

(In Thousands)

September 30, 2011

(In Thousands) 

All obligations incurred are Category A. The Peace Corps does not have any Category B or exempt from 

apportionment obligations in FY 2012.

Undelivered Orders – End of Period $ 56,602 $ 60,588

 (In Thousands) (In Thousands)

Note 13 Undelivered Orders at End of the Period

September 30, 2012 September 30, 2011

The undelivered orders are budgetary obligations with and without advances/prepayments placed against federal 

budget authority where no goods or services have been received.
116 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Note 14 Fiduciary Activities

Schedule of Fiduciary Activity

(In Thousands)

Fiduciary Net Assets, Beginning $ 769 $ 970 $ - $ -

 Contributions 1,021 1,173 4,743 4,523

 Disbursements (986) (1,374) (4,743) (4,523)

Increase/(Decrease) in Fiduciary Net Assets 35 (201) - -

Fiduciary Net Assets, Ending $ 804 $ 769 $ - $ -

Schedule of Fiduciary Net Assets

(In Thousands)

Fiduciary Net Assets

Cash and Cash Equivalents $ 804 $ 655 $ - $ -

Less: Liabilities - (114) - - 

Total Fiduciary Net Assets $ 804 $ 769 $ - $ -

HCC

Cash

2012 

HCC

Cash

2011 

HCC

In-Kind

2012 

HCC

In-Kind

2011 

HCC

Cash

2012 

HCC

Cash

2011 

HCC

In-Kind

2012 

HCC

In-Kind

2011 

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 $4.7

million in fair market value were received at posts through the end of September 30, 2012, for services, supplies, 

equipment, and facilities. The host country cash balance is $.8 million as of September 30, 2012.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 117

FINANCIAL SECTION

As of September 30, 2012 

Resources Used to Finance Activities:

Budgetary Resources Obligated:

Obligations Incurred $ 379,110 $ 7,480 $ 386,590

Less: Spending Authority from Offsetting Collections and Recoveries 12,819 14,862 27,681

Obligations Net of Offsetting Collections and Recoveries 366,291 (7,382) 358,909

Less: Offsetting Receipts (2,113) - (2,113)

Net Obligations $ 368,404 $ (7,382) $ 361,022

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 $ 375,165 $ (7,382) $ 367,783

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 (+/-) $ 4,419 $ 7,382 $ 11,801

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) (46) (3,635)

Other resources or adjustments to net obligated resources that do not 

affect net cost of operations (+/-) (3) - (3)

Total resources used to finance items not part of the net cost of 

operations $ 7,278 $ 7,336 $ 14,614

Total resources used to finance the net cost of operations $ 382,443 $ (46) $ 382,397

Components Requiring or Generating Resources in Future Periods:

Future Funded Expenses (6,528) - (6,528)

Employer Contribution to Employee Benefits (234) - (234)

Components not Requiring or Generating Resources:

Depreciation and amortization 10,224 14 10,238

Other (+/-) (173) - (173)

Total Components of Net Cost of Operations that will not require or 

generate resources 3,289 14 3,303

Net Cost of Operations $ 385,732 $ (32) $ 385,700

Note 15 Reconciliation of Net Cost of Operations to Budgetary Obligations

 Direct Reimbursable Total 

(In Thousands)
118 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

FINANCIAL SECTION

As of September 30, 2011 

Resources Used to Finance Activities:

Budgetary Resources Obligated:

Obligations Incurred $ 395,309 $ 5,281 $ 400,590

Less: Spending Authority from Offsetting Collections and Recoveries 13,637 5,281 18,918

Obligations Net of Offsetting Collections and Recoveries 381,672 - 381,672

Less: Offsetting Receipts (1,209) - (1,209)

Net Obligations $ 382,881 $ - $ 382,881

Other Resources

Donations and Forfeitures of Property $ 170 $ - $ 170

Transfers in/out without reimbursement (+/-) (154) - (154)

Imputed financing from costs absorbed by others 6,518 - 6,518

Net resources used to finance activities $ 6,534 $ - $ 6,534

Total resources used to finance activities $ 389,415 $ - $ 389,415

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 (+/-) $ 14,836 $ - $ 14,836

Resources that fund expenses recognized in prior periods (5,036) - (5,036)

Resources that finance the acquisition of assets (22,948) - (22,948)

Other resources or adjustments to net obligated resources that do not 

affect net cost of operations (+/-) 640 - 640

Total resources used to finance items not part of the net cost of 

operations $ (12,508) $ - $ (12,508)

Total resources used to finance the net cost of operations $ 376,907 $ - $ 376,907

Components Requiring or Generating Resources in Future Periods:

Future Funded Expenses 3,481 - 3,481

Employer Contribution to Employee Benefits 824 - 824

Components not Requiring or Generating Resources:

Depreciation and amortization 9,081 - 9,081

Other (+/-) (33) - (33)

Total Components of Net Cost of Operations that will not require or 

generate resources 13,353 - 13,353

Net Cost of Operations $ 390,260 $ - $ 390,260

 Reimbursable Total 

(In Thousands)

Note 15 Reconciliation of Net Cost of Operations to Budgetary Obligations

 Direct 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 119

FINANCIAL SECTION

Note 16 Imputed Financing

Federal Employees Health Benefit Program $ 4,260 $ 4,681

Federal Employees Group Life Insurance Program 14 14

Civil Service Retirement System 787 775

Federal Employees Retirement System 719 974

Foreign Service Retirement and Disability System 72 74

Total Imputed Costs $ 5,852 $ 6,518

September 30, 2012

 (In Thousands)

September 30, 2011

 (In Thousands)

Imputed financing recognizes actual costs of future benefits which include the Federal Employees Health Benefit 

Program, Federal Employees Group Life Insurance Program, and pension benefits that are paid by other federal 

entities. 

Note 17 Disclosure on Contributions to the Peace Corps

Media Contributions Received —The agency was provided free donated space equivalent to $16.1 million in print, 

radio, and television media through public service announcements for FY 2012. The National Association of 

Broadcasters provided the data used by Peace Corps to determine the value for media contributions. These donations 

are not included in the financial statements.
120 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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Inspector General’s Audit Transmittal Letter 

Office of Inspector General

To: Carolyn Hessler-Radelet, Acting Director

From: Kathy A. Buller, Inspector General

Date: November 8, 2012

Subject: Audit of Peace Corps’ Fiscal Year 2012 Financial Statements

This letter transmits the reports of CliftonLarsonAllen LLP (CLA) on its financial statement 

audit of the Peace Corps’ Fiscal Year (FY) 2012 Financial Statements. As required by the 

Accountability of Tax Dollars Act of 2002, the Peace Corps prepared financial statements in 

accordance with Office of Management and Budget (OMB) Circular No. A-136, Financial 

Reporting Requirements, and subjected them to audit.

Audit Reports on Financial Statements, Internal Control, and Compliance and Other Matters

We contracted with CLA, an independent certified public accounting firm, to audit the Peace 

Corps’ financial statements as of September 30, 2012 and 2011. The contract required that 

the audit be done in accordance with U.S. generally accepted government auditing standards,

OMB audit guidance, and the Government Accountability Office/President’s Council on

Integrity and Efficiency Financial Audit Manual.

CLA’s audit report for FY 2012 includes: (1) an opinion on the financial statements, (2) 

conclusions on internal control over financial reporting, and (3) a section addressing

compliance and other matters. In the audit of the Peace Corps, CLA found:

The financial statements were fairly presented, in all material respects, in conformity with

U.S. generally accepted accounting principles,

There were no material weaknesses in internal control.1

 1 A material weakness is defined as 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.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 121

FINANCIAL SECTION

CLA’s report on internal control identified two significant deficiencies:2

 Internal control over property, plant, and equipment needs to be improved. 

Improvements needed are related to recording, tracking, and physical 

verification of property.

 Information system security controls need improvement. The auditor cited 

security management, contingency planning, access controls, and 

configuration management as areas needing improvement. 

CLA found no instances of reportable noncompliance with laws and regulations it tested

or other matters that are required to be reported under Government Auditing Standards or 

OMB guidance. 

OIG Evaluation of CLA’s Audit Performance

In connection with the contract, we reviewed CLA's reports and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

U.S. generally accepted government auditing standards, was not intended to enable us to 

express, and we do not express, opinions on Peace Corps’ financial statements or conclusions 

about the effectiveness of internal control or conclusions on compliance with laws and 

regulations. CLA is responsible for the attached auditor's reports dated November 8, 2012

and the conclusions expressed in the reports. However, our review disclosed no instances 

where CLA did not comply, in all material respects, with U.S. generally accepted 

government auditing standards.

We would like to extend our thanks to the Peace Corps staff involved in issuing the financial 

statements within the established OMB milestones. Their professionalism, courtesy, and 

cooperation allowed us to overcome the many challenges associated with performance of the 

audit and our oversight of the audit process. If you or a member of the Peace Corps staff has

any questions about CLA’s audit or our oversight, please contact me or Assistant Inspector 

General for Audit Bradley Grubb, at 202-692-2914.

Attachment

cc: Stacy Rhodes, Chief of Staff

Joseph Hepp, Chief Financial Officer

Dorine Andrews, Chief Information Officer

Daljit Bains, Chief Compliance Officer

 2 A significant deficiency is defined as a deficiency, or a combination of deficiencies, in internal 

control that is less severe than a material weakness, yet important enough to merit attention by those 

charged with governance.
122 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

FINANCIAL SECTION

Auditor’s Report

CliftonLarsonAllen LLP 

www.cliftonlarsonallen.com

Independent Auditor’s Report 

To the Acting Director and Inspector General 

 Peace Corps 

We have audited the accompanying balance sheets of Peace Corps as of September 30, 2012 

and 2011, and the related statements of net cost and changes in net position, and the 

statements of budgetary resources (“financial statements”) for the years then ended. The 

objective of our audit was to express an opinion on the fairness of these financial statements. In 

connection with our audit, we also considered the internal control over financial reporting and 

considered Peace Corps’ compliance with laws and regulations. In our audit, we found: 

 The financial statements are presented fairly, in all material respects, in conformity with 

accounting principles generally accepted in the United States of America (U.S.); 

 No material weakness in internal control over financial reporting (including safeguarding 

assets) and compliance with laws and regulation; 

 Two significant deficiencies in internal control over financial reporting; and 

 No instances of reportable noncompliance with selected provisions of laws and 

regulations tested. 

The following sections and Exhibits discuss in more detail: (1) these conclusions, (2) our 

conclusions on Management’s Discussion and Analysis (MD&A) and other accompanying 

information, (3) our responsibility for the audit, (4) management’s responsibility for the financial 

statements, (5) Peace Corps’ response and our evaluation of their response, and (6) the current 

status of prior year findings and recommendations. 

Opinion on the Financial Statements 

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of Peace Corps as of September 30, 2012 and 2011, and its net costs, 

changes in net position, and budgetary resources for the years then ended in conformity with 

accounting principles generally accepted in the U.S. 

Report on Internal Control

In planning and performing our audit, we considered Peace Corps’ internal control over financial 

reporting and compliance (internal control) as a basis for designing our auditing procedures for 

the purpose of expressing our opinion on the financial statements, but not for the purpose of 

expressing an opinion on the effectiveness of Peace Corps internal control. Accordingly, we do 

not express an opinion on the effectiveness of Peace Corps’ internal control.

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
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 123

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT (Continued) 

deficiency or a combination of deficiencies in internal control, such that there is a reasonable 

possibility that a material misstatement of the Entity’s financial statements will not be prevented, 

or detected and corrected on a timely basis. 

Our consideration of internal control was for the limited purpose described above and was not 

designed to identify all deficiencies in internal control that might be significant deficiencies or 

material weaknesses. We did not identify any deficiencies in internal control that we consider to 

be material weaknesses. However, we identified two deficiencies in internal control described 

below and in Exhibit A that we consider to be significant deficiencies. A significant deficiency is 

a control 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. 

Significant Deficiencies

These control deficiencies, detailed in Exhibit A are summarized as follows: 

1. Controls over property plant and equipment need improvement 

2. Information systems security controls need improvement 

Report on Compliance 

In connection with our audit, we performed tests of Peace Corps’ compliance with certain 

provisions of laws and regulations. The results of our tests disclosed no instances of 

noncompliance that are required to be reported in accordance with Government Auditing 

Standards, issued by the Comptroller General of the United States or OMB Bulletin No. 07-04

Audit Requirements for Federal Financial Statements, as amended (OMB Bulletin 07-04). 

However, the objective of our audit was not to provide an opinion on compliance with laws and 

regulations. Accordingly, we do not express such an opinion. 

We noted certain other nonreportable matters involving internal control and its operations that 

we plan to communicate in a separate letter to Peace Corps management 

Status of Prior Year’s Control Deficiencies 

We have reviewed the status of Peace Corps’ corrective actions with respect to the findings and 

recommendations included in the prior year’s Independent Auditors’ Report, dated November 

11, 2011. Many of the weaknesses described in the significant deficiencies (Exhibit A) are 

repeat findings over a number of years. Peace Corps has been unable to remediate these 

weaknesses in a timely manner. The status of prior year findings and recommendations is 

presented in Exhibit B.

Other Information 

Accounting principles generally accepted in the U.S. require that Peace Corps’ MD&A be 

presented to supplement the financial statements. Such information, although not a part of the 

financial statements, is required by the Federal Accounting Standards Advisory Board who 

considers it to be an essential part of financial reporting for placing the financial statements in 

an appropriate operational, economic, or historical context. We have applied certain limited 

procedures to the MD&A in accordance with auditing standards generally accepted in the U.S., 

which consisted of inquiries of management about the methods of preparing the information and 
124 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT (Continued) 

comparing the information for consistency with management's responses to our inquiries, the 

financial statements, and other knowledge we obtained during our audit of the financial 

statements. 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. 

The Message from the Director, Performance Section, Other Accompanying Information and 

Appendices listed in the table of contents is presented for additional analysis and is not a 

required part of the financial statements. Such information has not been subjected to the 

auditing procedures applied in the audit of the financial statements and, accordingly, we express 

no opinion on it. 

Management’s Responsibility for the Financial Statements 

Peace Corps management is responsible for (1) preparing the financial statements in conformity 

with accounting principles generally accepted in the U.S., (2) designing, implementing, and 

maintaining internal control to provide reasonable assurance that the broad control objectives of 

FMFIA are met, and (3) complying with other applicable laws and regulations. 

Auditor’s Responsibility 

We are responsible for conducting our audit in accordance with auditing standards generally 

accepted in the U.S.; the standards applicable to the financial audits contained in Government 

Auditing Standards, issued by the Comptroller General of the United States; and OMB Bulletin 

07-04. Those standards require that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are presented fairly, in all material respects, 

in conformity with accounting principles generally accepted in the U.S. We are also responsible 

for: (1) obtaining a sufficient understanding of internal control over financial reporting and 

compliance to plan the audit, (2) testing compliance with selected provisions of laws and 

regulations that have a direct and material effect on the financial statements and laws for which 

OMB Bulletin 07-04 requires testing, and (3) performing limited procedures with respect to 

certain other information appearing in the Annual Report. 

In order to fulfill these responsibilities, we (1) examined, on a test basis, evidence supporting the 

amounts and disclosures in the financial statements; (2) assessed the appropriateness of the 

accounting policies used and the reasonableness of significant estimates made by 

management; (3) evaluated the overall presentation of the financial statements; (4) obtained an 

understanding of Peace Corps and its operations, including its internal control related to 

financial reporting (including safeguarding of assets) and compliance with laws and regulations, 

(including execution of transactions in accordance with budget authority); (5) evaluated the 

effectiveness of the design of internal control; (6) tested the operating effectiveness of relevant 

internal controls over financial reporting and compliance; (7) considered the design of the 

process for evaluating and reporting on internal control and financial management systems 

under FMFIA; and (8) tested compliance with selected provisions of certain laws and 

regulations. The procedures selected depend on the auditors’ judgment, including our 

assessment of risks of material misstatement of the financial statements, whether due to fraud 

or error. We believe we obtained sufficient and appropriate audit evidence on which to base our 

opinion. 

We did not evaluate all internal controls relevant to operating objectives as broadly defined by 

the FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

operations. We limited our internal control testing to controls over financial reporting and 

compliance. Because of inherent limitations in internal control, misstatements due to error or 

fraud, losses, or noncompliance may nevertheless occur and not be detected. We also caution 

that projecting our audit results to future periods is subject to risk that controls may become 

inadequate because of changes in conditions or that the degree of compliance with controls 

may deteriorate. In addition, we caution that our internal control testing may not be sufficient for 

other purposes. 

We did not test compliance with all laws and regulations applicable to Peace Corps. We limited 

our tests of compliance to selected provisions of laws and regulations that have a direct and 

material effect on the financial statements and those required by OMB Bulletin 07-04 that we 

deemed applicable to Peace Corps’ financial statements for the fiscal year ended September 

30, 2012. We caution that noncompliance with laws and regulations may occur and not be 

detected by these tests and that such testing may not be sufficient for other purposes. 

Agency Comments and our Evaluation 

Management’s response to our report is presented in Exhibit C. We did not audit Peace Corps’ 

response and, accordingly, we express no opinion on it. 

This report is intended solely for the information and use of Peace Corps’ management, Peace 

Corps’ Office of Inspector General, OMB, the U.S. Government Accountability Office, and the 

U.S. Congress, and is not intended to be, and should not be, used by anyone other than these 

specified parties. 

a 

Arlington, Virginia 

November 8, 2012 
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EXHIBIT A 

SIGNIFICANT DEFICIENCY 1 

CONTROLS OVER PROPERTY PLANT AND EQUIPMENT NEED IMPROVEMENT 

The Office of the Chief Financial Officer (OCFO) continues to make improvements to the 

Property, Plant & Equipment (PP&E) process but there remains an inability to account for 

assets accurately and timely by the Office of the Chief Information Officer (OCIO) and the Office 

of Management (OM). 

The contract for the new property accountability software solution, BarTracks, was awarded in 

September 2010. It was deployed in the fourth quarter of fiscal year 2011 and fully implemented 

in the first quarter of FY 2012. BarTracks was to provide headquarters with a significantly 

improved oversight of Post property and to provide Post with an automated tool to properly 

account for its property. On August 25, 2011, new procedures were written to address 

implementation of BarTracks. These procedures were documented by OM in MS 511, Property 

Management, and Property Accountability Handbook and MS 527: Vehicle Acquisition, 

Disposal, and Management, and the Vehicle Fleet Management Handbook. 

We found that disposed property is not properly recorded in BarTracks and in Odyssey. Our 

testing found that: 

 Seven of ten (or 70% of) assets were without a serial number; 

 One of ten (or 10% of) assets were without invoice number; 

 Four of ten (or 40% of) assets were entered in the system 3 months after their in-service 

date;

 Another three of ten (or 30% of) assets were entered in the system 10 months after their 

in-service date (crossing fiscal years); 

 Three of ten (or 30% of) assets were capitalized at a higher costs during the allocation 

process for shipping, freight and travel cost for multiple goods on one invoice; and 

 Hours charged internally to software development projects are without support (only 

estimates used). 

During our Post reviews, we also noted in-service date issues and delays with entering assets in 

Odyssey. 

We also found that the asset listing contained numerous assets without identification numbers. 

Recommendations

We recommend the Peace Corps Director ensure that: 

1a. Current policies designed to ensure complete and accurate asset listings are enforced. 

Procedures should be developed to ensure assets are properly tagged upon receipt and 

that OCIO, Office of Management and the OCFO are provided with complete and timely 

data to record additions. 

1b. Roles and responsibilities outlined on Peace Corps Standard Operating Procedures (SOP) 

are carried out by posts and HQ for property accounting and financial reporting personnel 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

that perform accuracy, verification, and completeness checks on the capitalized property 

listings. Office of Management and OCIO should determine the responsible party for 

managing and maintaining the records of overseas IT assets. 

1c. Procedures are developed to ensure that additions and disposals are recorded accurately 

and timely. OCIO should provide OCFO with timely disposal data to ensure the property 

balances are not overstated. 

1d. Timekeeping policies and procedures are implemented to adequately track, capture and 

record hours worked on capital projects such as internal-use software in development and 

construction-in-progress. 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

SIGNIFICANT DEFICIENCY 2 

INFORMATION SYSTEM SECURITY CONTROLS NEED IMPROVEMENT 

Peace Corps made improvements to its information systems control environment during FY 

2012. However, we found that certain internal control weaknesses related to Peace Corps’ 

overall IT environment continued to exist at September 30, 2012. Our evaluation of the general 

and application controls of Peace Corps’ key IT infrastructure and financial systems identified 

the following conditions. 

Control Weaknesses 

Security Management 

Security management controls provide a framework and continuing cycle of activity for periodic 

assessments and validation of risk, security control policies and procedures, security awareness 

training and other security-related personnel issues, periodic testing and evaluation of 

information security policies, procedures and practices, remediation of information security 

weaknesses and security over activities performed by external third parties. 

The National Institute of Standards and Technology Special Publication (NIST SP) 800-53 

Revision 3, Recommended Security Controls for Federal Information Systems and 

Organizations controls (RA-3) Risk assessments: states “The organization reviews risk 

assessment results [Assignment: organization-defined frequency] and updates the risk 

assessment [Assignment: organization-defined frequency] or whenever there are significant 

changes to the information system or environment of operation (including the identification of 

new threats and vulnerabilities), or other conditions that may impact the security state of the 

system.” 

The finding described below represents Peace Corps’ lack of compliance with the NIST 

requirement to update risk assessments whenever there are significant changes to the 

information system or environment. The risk exists that management and system owners may 

not be adequately aware of the scope and boundaries of their system and its related control 

environment. 

 The Global Infrastructure Risk Assessment (dated September 20, 2010) did not include 

the Europe, Mediterranean, and Asia (EMA) Region component general support system 

or the Africa Region component general support system. 

Contingency Planning 

Contingency planning controls provide reasonable assurance that (1) information resources are 

protected, (2) the risk of unplanned interruptions is minimized and (3) provides for recovery of 

critical operations should interruptions occur. 

Per National Institute of Standards and Technology Special Publication (NIST SP) 800-53 

Revision 3, Recommended Security Controls for Federal Information Systems and 

Organizations controls: MP-5, Media Transport: states “The organization protects and controls 

[Assignment: organization-defined types of digital and non-digital media] during transport 

outside of controlled areas using [Assignment: organization-defined security measures];

Additionally, related control Enhancement 4) states: “The organization employs cryptographic 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

mechanisms to protect the confidentiality and integrity of information stored on digital media 

during transport outside of controlled areas.” Additionally, CP-4 Contingency Plan Testing and 

Exercises: states “The organization: (a) tests and/or exercises the contingency plan for the 

information system [Assignment: organization-defined frequency, at least annually] using 

[Assignment: organization-defined tests and/or exercises] to determine the plan’s effectiveness 

and the organization’s readiness to execute the plan; and (b) reviews the contingency plan 

test/exercise results and initiates corrective actions. The organization coordinates contingency 

plan testing and/or exercises with organizational elements responsible for related plans.” 

NIST Special Publication 800-34, Revision 1, Contingency Planning Guide for Information 

Technology Systems states: “Accordingly, in order for contingency planning to be successful 

agency management must ensure they understand the IT Contingency Planning Process and its 

place within the overall Continuity of Operations Plan and Business Continuity Plan process, 

and develop or reexamine their contingency policy and planning process and apply the 

elements of the planning cycle, including preliminary planning, business impact analysis, 

alternate site selection, and recovery strategies.” 

The findings described below represent Peace Corps’ lack of compliance with NIST and OMB 

requirements to encrypt backup tapes, incorporate a business impact analyses into contingency 

plans, and test contingency plans on a regular basis. The risk exists that unauthorized 

individuals could obtain access to sensitive data stored on backup tapes, contingency plans 

may not effectively support critical business functions, and these plans may not work as 

intended upon activation, thus delaying recovery or restoration efforts. 

 Backup tapes were not being encrypted by Peace Corps. 

 The following deficiencies were noted with regards to Peace Corps’ Contingency 

Planning: 

o The Peace Corps agency-wide Business Impact Analysis (BIA) was not in alignment 

with the disaster recovery testing performed. 

o CLA visited the following Peace Corps posts during 2012: Burkina Faso and Vanuatu 

and noted that contingency plans did not identify procedures to follow if alternate 

sites cannot send or receive information. Additionally, neither post had performed 

contingency testing. 

Access Controls 

Access controls should be in place to consistently limit, detect inappropriate access to computer 

resources (data, equipment, and facilities), or monitor access to computer programs, data, 

equipment, and facilities. These controls protect against the unauthorized modification, 

disclosure, loss or impairment. Such controls include both logical and physical security controls 

to ensure that Federal employees and contractors will be given only the access privileges 

necessary to perform business functions. Inappropriate access controls do not provide Peace 

Corps with sufficient assurance that financial information and financial assets are safeguarded 

from inadvertent or deliberate misuse, fraudulent use, improper disclosure, or destruction. 

Per National Institute of Standards and Technology Special Publication (NIST SP) 800-53 

Revision 3, Recommended Security Controls for Federal Information Systems and 

Organizations controls: AC-2, Account Management: “The organization manages information 

system accounts, including identifying account types, identifying authorized users of the 

information system and specifying access privileges, requiring appropriate approvals for 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

requests to establish accounts, and establishing, activating, modifying, disabling, and removing 

accounts.” Additionally, PE-2, Account management: “The organization a. develops and keeps 

current a list of personnel with authorized access to the facility where the information system 

resides (except for those areas within the facility officially designated as publicly accessible); b. 

Issues authorization credentials; c. Reviews and approves the access list and authorization 

credentials [Assignment: organization-defined frequency], removing from the access list 

personnel no longer requiring access. 

The findings described below represent Peace Corps’ lack of compliance with NIST 

requirements to require appropriate approvals for requests to establish accounts, manage 

information system accounts, and review and approval of access lists to information system 

facilities. The risk exists that electronic media could be misplaced or accidently disposed, and 

unauthorized individuals could potentially have or obtain access to Peace Corps data and 

systems. 

 Peace Corps media retention policies and procedures were not developed. 

 Media was not properly tracked prior to sanitization and disposal as hard drives and 

tapes were not all labeled with a unique identifier. 

 Evidence of an access request authorization (PTS request ticket/email) could not be 

provided for one Global Infrastructure Network account created during FY 2012. 

 Deficiencies were identified regarding access controls (inactive accounts and accounts 

that did not require a password) surrounding Active Directory accounts. 

 Five individuals who accessed the data center during FY12 were not listed on the CIO 

approved listing of individuals authorized access. In addition, we noted three temporary 

individuals whom had accessed the data center; however since these temporary access 

cards were not assigned to a specific individual, management was unable to identify the 

temporary individuals and if they were properly granted or needed access.

Configuration Management 

Controls provide reasonable assurance that changes to information system resources are 

authorized and systems are configured and operated securely as intended. 

Per National Institute of Standards and Technology Special Publication (NIST SP) 800-53 

Revision 3, Recommended Security Controls for Federal Information Systems and 

Organizations controls:

 CM-1, Configuration management policy and procedures: ”The organization develops, 

disseminates, and periodically reviews/updates: (i) a formal, documented, configuration 

management policy that addresses purpose, scope, roles, responsibilities, management 

commitment, coordination among organizational entities, and compliance; and (ii) formal, 

documented procedures to facilitate the implementation of the configuration 

management policy and associated configuration management controls.” 

 CM-2, Baseline configurations: “The organization develops, documents, and maintains 

under configuration control, a current baseline configuration of the information system.” 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

 RA-5 Vulnerability scanning:, “The organization: (e) shares information from the 

vulnerability scanning process and security control assessments with designated 

personnel throughout the organization to help eliminate similar vulnerabilities in other 

information systems (i.e. systemic weaknesses or deficiencies).” 

OMB Memorandum M-08-22, Guidance on the Federal Desktop Core Configurations (FDCC), 

“Microsoft Windows XP and Windows Vista are desktop operating systems. Accordingly, FDCC 

is applicable to all computing system using Windows XP and Windows Vista, including desktops 

and laptops but not including servers. It is important for the collective security of the Federal 

Government for all the Windows XP and Windows Vista computers to meet or exceed FDCC, 

regardless of function.” 

Additionally, the Federal CIO Council created the Technology Information Subcommittee (TIS) 

at the direction of OMB to govern, among other federal activities, the FDCC initiative. The TIS, 

based on federal agency input, selects platforms and application configuration settings for 

federal implementation. The TIS also is the Change Control Board (CCB) for configuration 

settings. As stated in the Federal CIO Council Memo to federal agencies, "The USGCB settings 

replace the Federal Desktop Core Configuration (FDCC) settings and provide the recommended 

security baselines for Information Technology products widely deployed across agencies." The 

platforms addressed by USGCB are Microsoft's Windows 7, Windows 7 Firewall, Windows 

Vista, Windows Vista Firewall, Windows XP, Windows XP Firewall, Internet Explorer 7, Internet 

Explorer 8, and Red Hat Enterprise Linux 5. 

The findings described below represent Peace Corps’ lack of compliance with NIST and OMB 

requirements to develop a formal documented configuration management policy, 

implementation of security baseline requirements, and to share information from the 

vulnerability scanning process with designated personnel for remediation. The risk exists that 

configuration management policies may not be consistently implemented throughout Peace 

Corps, desktops and workstation security configurations may not be sufficient or consistently 

hardened against an attack, and vulnerabilities noted on Peace Corps information systems may 

not be resolved/mitigated in a timely manner.

 Although system level configuration management policies and procedures were 

developed, they did not exist at the agency level. 

 Peace Corps had not implemented all of the FDCC requirements as required by OMB 

Memorandum M-08-22, Guidance on the Federal Desktop Core Configurations (FDCC).

For example, workstations were lacking centrally managed controls such as session 

locking. Additionally, the Peace Corps Microsoft Windows Servers did not have 

mandatory security settings and related baseline configurations documented. 

 Although Peace Corps scanned workstations and servers as stated in the Standard 

Operating Procedures for Vulnerability Scanning, workstations and server scan results 

stopped being reported to management for remediation after the second quarter of FY 

2012.

Recommendations

We recommend the Peace Corps Director ensure that: 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

2a. Formal risk assessments are completed and updated for all Peace Corps major applications 

and general support systems. 

2b. Encryption is implemented on all backup tapes in accordance with the Peace Corps policies 

and procedures. 

2c. The Business Impact Analysis is reevaluated and updated to ensure that it accurately 

addresses the deficiencies noted in the disaster recovery tests. 

2d. All system Contingency Plans are tested to determine if procedures for reconstitution and 

recovery of the systems are adequate. 

2e. Guidance is provided to posts regarding the development of post contingency plans and 

testing of contingency scenarios to determine if procedures for reconstitution and recovery of 

the post systems are adequate.

2f. Media retention policies and procedures are developed and implemented. 

2g. Media is tracked with unique identifiers upon receipt and prior to sanitization and disposal. 

2h. Formal procedures are implemented for requesting access to portable and mobile devices 

and to include management approved access requests that document each user’s approval and 

assigned device. 

2i. A method is developed to track the assignments of portable and mobile devices by specific 

equipment identifiers and individual assigned. 

2j. Procedures are developed and implemented to ensure the timely return of portable and 

mobile devices and updating of equipment inventories to reflect current possession. 

2k. An access request procedure is implemented that includes managing network access 

requests via a centralized mechanism. 

2l. Account management procedures are enhanced to include quarterly network account review 

requirements, identification of those network accounts which remain inactive for more than 90 

days, have never been logged into, represent generic or group accounts, or accounts with 

passwords not defined to expire, and analyze accounts identified as questionable (during the 

review process) for reasonableness and disable or delete as necessary. 

2m. Individuals currently granted data center access are compared to the most recent listing of 

authorized individuals (provided by the OCIO) to ensure no discrepancies. Following up as 

needed to disable or delete access. 

2n. A formalized procedure is implemented which includes assignment of department/individual 

responsibilities to review data center access reasonableness on a quarterly basis, and disabling 

access if no authorized or no longer needed to perform an individuals’ position responsibilities. 

2o. The use of temporary badges to access the data center is either discontinued, or 

documented records of individuals assigned to each card are maintained including when issued, 

when returned, issued to whom, and who authorized issuance of the badge to the individual. 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

2p. System change control procedures are integrated fully with the agency wide change control 

plan and include methodologies for approving specific change types, identifying the use of the 

varying change types, and identifying the process flows for each type of change. 

2q. Change control policies are updated to ensure that formal procedures for requesting, 

approving, coding, testing and promoting a change are appropriately documented. 

2r. Mandatory security settings and baseline configurations are maintained for Microsoft 

Windows Servers.

2s. FDCC/United States Government Configuration Baseline (USGCB) compliant group policies 

are implemented and ensure that all workstations are compliant with the FDCC/USGCB 

requirement checklists. 

2t. Vulnerability scan results are reported to the appropriate individuals immediately following 

the scans and tracked for remediation purposes. 
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INDEPENDENT AUDITOR’S REPORT (Continued) 

EXHIBIT B 

STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS 

Prior Year Condition Status As Reported at September 30, 2012 Status as of 

September 30, 2012 

Controls over Property 

Plant and Equipment 

Need Improvement 

Significant Deficiency:

The Office of the Chief Financial Officer 

(OCFO) continues to make improvements to 

the Property, Plant & Equipment (PP&E) 

process but there remains an inability to 

account for assets accurately and timely by the 

Office of the Chief Information Officer (OCIO) 

and the Office of Management (OM).

The contract for the new property 

accountability software solution, BarTracks, 

was awarded in September 2010. It was 

deployed in the fourth quarter of fiscal year 

2011 and fully implemented in the first quarter 

of FY 2012. BarTracks was to provide 

headquarters with a significantly improved 

oversight of Post property and to provide Post 

with an automated tool to properly account for 

its property. 

We found that disposed property is not 

properly recorded in BarTracks and in 

Odyssey. 

During our Post reviews, we also noted inservice date issues and delays with entering 

assets in Odyssey. 

We also found that the asset listing contained 

numerous assets without identification 

numbers.

This is a repeat finding 

– See Significant 

Deficiency 1 

Information System 

Security Controls Need 

Improvement

Significant Deficiency:

Peace Corps made improvements to its 

information systems control environment 

during FY 2012. However, we found that 

certain internal control weaknesses related to 

Peace Corps’ overall IT environment continued 

to exist at September 30, 2012. Our evaluation 

of the general and application controls of 

Peace Corps’ key IT infrastructure and 

financial systems identified weaknesses in the 

areas of security management, contingency 

planning, access controls and configuration 

management. 

This is a repeat finding 

– See Significant 

Deficiency 2 
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EXHIBIT C

AGENCY COMMENTS TO THE AUDITOR’S REPORT

The agency reviewed the Auditor’s Report and concurs with the findings in the report.
This page was intentionally left blank
A photo of an Education Volunteer crushing grapes for wine with her 

host mother in Moldova.

OTHER ACCOMPANYING INFORMATION
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Inspector General’s Statement on the Peace Corps’ Management

and Performance Challenges

Office of Inspector General

TO: Carolyn Hessler-Radelet, Acting Peace Corps Director

FROM: Kathy A. Buller, Inspector General 

SUBJECT: Inspector General’s Statement on the Peace Corps’ Management and 

Performance Challenges

DATE: October 26, 2012

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 2012. OIG has concluded that three of the five areas it identified as 

management and performance challenges in previous years continue to present significant 

challenges at the Peace Corps. Further, for FY 2012 OIG has included two challenge areas 

(Property Management and Protection of PII) under “Business Processes and Information 

Systems” that were previously presented separately. In addition, OIG has identified three new 

challenge areas.

This year’s challenge areas are:

• IT Management (first reported in FY 2009)

• Effective and Timely Remediation of OIG Findings and Recommendations (FY 2010)

• Business Processes and Information Systems (FY 2011)

• Excessive Personnel Turnover (new)

• Programming and Volunteer Training (new)

• Accountability of Medical Supplies (new)

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. By addressing the issues related to these challenge areas, the 

agency could potentially increase operational efficiencies and improve mission effectiveness.

Attachment
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Peace Corps’ Management and Performance Challenge Areas

Challenge IT Management 

As noted in previous years the most significant risk for this challenge area is ensuring that 

limited resources will be put to use where most needed. OCIO has made significant progress in 

managing IT resources by improving its customer service through enhancements in how it 

responds to meet customer requirements and restructuring and streamlining its operations. OCIO 

has also aligned IT resources with the agency’s business processes by establishing programs to 

better link goals and objectives to resources and developing a business process five-year 

Enterprise and Architecture and a roadmap to guide its work. Further, OCIO management 

continues to make substantial IT upgrades at overseas locations.

Management has also made good progress in strengthening Peace Corps’ IT security 

management and further improvements to the process are ongoing. However, some issues 

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; and some risk assessment and systems security planning 

documentation have not been completely updated. Achieving full compliance with federal laws 

and regulations that apply to managing the Peace Corps’ IT infrastructure are continuing 

management challenges. Resourcing issues continue to have a major impact on OCIO priorities 

as evidenced by high personnel turnover in key technical areas due in large part from term 

limited personnel appointments imposed by law and availability of qualified resources to fill 

vacant positions. As a result, throughout the past fiscal year OCIO has been about 20 percent 

below its programmed staffing strength.

Challenge Effective and Timely Remediation of OIG Findings and Recommendations

Over the last two years OIG has been reporting a challenge related to untimely remediation of 

OIG findings and recommendations. Although management has made progress in remediating 

findings and recommendations, it continues to not be timely in taking corrective actions 

necessary to remediate the deficiencies noted in OIG reports. During FY 2012 management fully 

remediated 121 recommendations of the 245 recommendations issued in FY 2012 and took 

actions to close 96 prior year’s recommendations. The table below indicates the total number of 

recommendations open for more than 180 days for the last eight years.

OIG Open Audit/Evaluation Report Recommendations

Fiscal Year OIG 

Report Issued

Number of Open 

Post and Agencywide 

Recommendations

Number of Open 

FISMA and Financial 

Statement Audit 

Recommendations

2012* 27 N/A

2011 34 6

2010 7 3

2009 2 5
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2008 5 4

2007 0 5

2006 0 0

2005 0 1

2004 0 1

Total No. of Open 

Recommendations 75 25

*Includes only those open since March 31, 2012. The FY 2012 FISMA and 

Financial Statement Audit Recommendations have not been included.

The lack of effective and timely remediation of OIG findings and recommendations is a trend 

that has continued through the current fiscal year. There are a number of significant audit and 

evaluation findings and recommendations that have remained in an open status for 2-8 years. 

Although the agency generally remediates recommendations for overseas posts in a timely and 

efficient manner, remediation of some of the more complex recommendations requiring 

corrective actions that change how the agency operates as a whole or have wide-ranging impact 

has not been closed timely. More complex recommendations often involve a more substantial 

level of effort and broader coordination and communication. For example, some 

recommendations having an impact on information security and property accountability have 

been open for more than two years. OIG believes agency management needs to place greater 

emphasis on improving its overall remediation process to include focusing on the higher priority 

and long outstanding recommendations.

Challenge Business Processes and Information Systems

Although the Peace Corps continued to streamline operations and improve the technology that 

supports key business processes and critical Volunteer support functions, it is constrained by 

limited resources and inadequate planning. A responsive management team that provides quality 

support services to Volunteers will require enhanced business processes and modern IT systems.

Agency business processes must also support effective internal controls and access to reliable 

data. During the past fiscal year, OIG’s work has 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 agency management implements the necessary automated 

and manual controls throughout their processes to ensure the desired results are achieved. The 

agency is improving its controls through recent revisions to policies and procedures and 

automated solutions in areas such as Volunteer payments, property management, and bills of 

collection. However, some important initiatives to improve business processes have been 

delayed or postponed. Further, management must develop monitoring mechanisms to ensure 

their controls are operating effectively. As shown in OMB Circular A-123, “Monitoring the 

effectiveness of internal control should occur in the normal course of business. In addition, 

periodic reviews, reconciliations or comparisons of data should be included as part of the regular 

assigned duties of personnel. Periodic assessments should be integrated as part of management’s 

continuous monitoring of internal control, which should be ingrained in the agency’s 

operations.”
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Although progress has been made, the agency still requires improvements in critical mission 

areas such as:

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’s new property accountability system was 

deployed in the fourth quarter of FY 2011. The Office of Management (OM) assisted posts in 

rectifying some of the initial system implementation issues and provided additional hands-on

training to general services managers in August 2012. OM continues to work closely with staff 

members responsible for property management. However, OIG’s FY 2012 audits found that 

posts were still struggling to design work processes around the new system and that the initial 

data loaded into the system had inaccuracies. In addition, OIG’s external auditor continues to 

report that the agency has not taken the necessary corrective actions to ensure accurate tracking 

of assigned laptop computers at headquarters. Management has acknowledged the internal 

control deficiencies found by the external auditor and recently initiated corrective actions. 

Safety and Security 

The agency continues to improve aspects of its safety and security program however it has not 

yet established some critical processes, such as developing a system to ensure safety and security 

recommendations are implemented by posts. The majority of the 42 posts visited by OIG in 

2009–2011 struggled to fully implement agency safety and security policies and procedures, 

specifically with regards to emergency action plans and consolidation points, Volunteer housing, 

site locator forms, and security background certifications for staff. For example, while the 

agency has established instructions to assist in these areas, additional training and monitoring are 

needed to ensure consistent implementation at posts. Similarly, the agency made progress by 

entering into a memorandum of understanding (MOU) with the DOS in May 2012 defining the 

roles and responsibilities for responding to staff and Volunteer safety and security incidents 

overseas. The execution of the MOU was included in a recommendation in the 2010 audit of the 

Volunteer safety and security program and subsequently mandated by the Kate Puzey Peace 

Corps Volunteer Protection Act of 2011(P.L. 112-57). While the execution of the MOU is an 

important milestone, dissemination of the MOU, follow up guidance from the Office of Safety 

and Security, and training will determine how effectively the MOU will be implemented. Given 

the decentralized nature of the Volunteer safety and security program and the number of overseas 

personnel with safety and security roles, it will be a management challenge to adequately train 

and oversee staff to ensure posts are fully complying with agency policies and guidance, a 

finding that was reported in OIG’s 2008 Final Program Evaluation Report: Volunteer Safety and 

Security.

Data Management

As the agency automates business processes, proper data management is essential to ensure the 

accessibility of useful and accurate data. Several new systems that will streamline operations and 

provide more robust data for management analysis and decision making are being developed. For 

example, the agency deployed systems to automate fleet vehicle management and process 

requests for personnel actions, and is piloting an e-solution to automate the process for approving 
142 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

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employee leave. However, progress in modernizing the Peace Corps’ timekeeping system has 

been delayed due to the inability of current available products to fulfill the timekeeping 

requirements for overseas staff. Further, the Peace Corps continues to process travel requests and 

reimbursement submissions manually. Although the General Services Administration has

recently awarded a new vendor contract for a government-wide e-travel system slated to begin in 

FY 2013, the agency’s review of system capabilities and necessary subsequent training may push 

actual Peace Corps’ implementation of the new system to sometime in FY 2014. Another major 

initiative is the new electronic medical records system to be fully deployed in FY 2014, which 

will have a component that will give the agency access to data on medical expenditures and other 

important related information. These systems are essential for recording and tracking useful data 

to help managers make informed decisions.

Protection of PII

This challenge was identified by OIG in FY 2009, and although the number of reported breaches 

decreased during FY 2012, the issue continues to be of concern. The agency reported six PII 

breaches in FY 2012 compromising the data of 17 individuals. One of the reported breaches 

involved 40 boxes of information containing post files that went missing. The extent to which 

those boxes contain PII and the number of affected individuals is unknown. In a separate 

incident, a box of records containing completed confidential financial disclosure report forms 

(OGE Form 450) was lost during an office move. Agency officials concluded that this loss was 

not a PII breach. Although OGE Form 450 does not ask for PII, it is possible some agency staff 

members provided such information with the forms submitted. Since FY 2009, the agency has 

updated incident response policy and modified breach notification policy, provided training in 

New Employee Orientation, with additional training offered after a confirmed breach; and 

reduced paper files containing PII through the DOVE automated system. The agency is in the 

process of automating the medical records, which will further reduce the paper files containing 

PII. 

Challenge Excessive Personnel Turnover

In June 2012 OIG issued its final report on the impacts the ‘five-year rule’ (FYR) has had on 

operations of the Peace Corps.1 Peace Corps management concurred with the report’s five 

recommendations and is in the process of formulating its plan for reform. The FYR, which 

became law in 1965, generally limits employment of Peace Corps’ U.S. direct hire personnel to 

five consecutive years (two 30-month tours). The purpose of the FYR was to create a constant 

flow of new employees including returned Peace Corps Volunteers (RPCVs) and overseas staff; 

avoid the inflexibility associated with the civil service system; and prevent employees from 

working their entire career at Peace Corps. OIG’s evaluation found that the FYR has enabled the 

agency to attract a mission-driven, energetic workforce and to employ RPCVs extensively, 

including in leadership positions at overseas posts. However, the FYR has caused unique 

employee retention problems and exacerbated a range of common management challenges.

The FYR has accelerated the annual rate of employee turnover to between 25 and 38 percent, 

quadruple that of the rest of the federal government. Most employees do not stay for five years; 

average employee tenure over the past 10 years has been just under three years. High turnover 

 1 Final Evaluation Report: Impacts of the Five-Year Rule on Operations of the Peace Corps
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has undermined the agency’s ability to retain its employees on the basis of performance, conduct 

succession planning, ensure continuity of needed skills and abilities, provide training and 

professional development to staff; and deploy its workforce efficiently.

The FYR has weakened the agency’s ability to attract and retain highly qualified professionals in 

the areas of contracting, financial management, IT, human resources management, and medical 

support functions. It has also led to frequent staffing gaps in key management positions overseas. 

Further, the practice of employing staff on 30-month tours has compromised performance 

management by allowing supervisors to avoid actively managing underperforming employees. 

Finally, OIG estimated that over the five-year period from 2005-2009, excessive turnover driven 

by the FYR accounted for approximately 60 percent of $20.7 million in total turnover 

management costs.2

Challenge Programming and Volunteer Training

Programming and Volunteer training is at the heart of the Peace Corps’ operations and enables 

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 2012, 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. Sixty-nine percent of OIG evaluation reports issued in FYs 2009–

2011 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. To mitigate site 

development weaknesses, the agency presented training sessions on site identification and 

preparation at their worldwide conferences in 2012 for country directors and directors of 

programming and training. Additionally, the agency added an indicator in the FY 2012 annual 

performance plan that measures Volunteers’ satisfaction with site selection and preparation to 

underscore the importance of this issue and to promote the identification of opportunities for 

performance improvement.

Volunteer Training 

Training provides Volunteers with important knowledge and skills needed for productive and 

fulfilling service. Seventy-five percent of the posts OIG evaluated in FY 2009–2011 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 

 2 This estimate only includes 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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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. The 

agency’s “Focus In/Train Up” initiative should help improve training if posts implement the 

changes needed to focus programming and deliver relevant training.

Host Country/Project Partner Coordination 

OIG evaluations have consistently reported that post relationships with host country ministries 

and project partners often need 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. Without a structured way to work 

with project partners, posts were not able to take full advantage of their partners’ expertise. Some 

posts had not developed and maintained MOUs with host country ministries and project partners. 

The agency is encouraging the use of project advisory committees (PACs) to ensure local 

partners are consulted throughout the cycle of a project. The FY 2012 annual performance plan 

also includes an indicator that sets targets for program managers’ use of PACs to improve 

performance and gather best practices. As a result, PACs use increased from 33 percent of all 

projects in FY 2011 to 69 percent of projects in FY 2012. 

Challenge Accountability of Medical Supplies

Audit and investigative work performed during FY 2012 has clearly shown that agency 

management needs to continue to place strong emphasis on improving accountability of medical 

supplies. The Peace Corps maintains medical supplies to provide Volunteers with needed 

vaccinations, medications, and emergency medical support. Peace Corps posts spend 

approximately $5 million a year on medical supplies. In FY 2008, 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. During FY 2012 the Office of Medical Services (OMS) further revised its policies and 

procedures by issuing technical guidance and provided training on the policies and procedures to

country directors, Peace Corps medical officers and other overseas staff. It also regularly 

communicated with posts to provide support. In the past year OMS further enhanced support by 

providing on-site assistance to four posts, and performing detailed analyses of medical supply 

inventory submissions from posts. Also, management has been reviewing options for automating 

elements of medical supply inventory which could potentially strengthen accountability.

Although OMS has taken an active role in improving accountability of medical supplies, OIG 

has found that many posts have continued to struggle with implementing policy requirements, 

including separating medical supplies custody from recordkeeping responsibilities; establishing 

proper workflow processes; and maintaining accurate and complete medical supply inventories.

Without sufficient oversight and compliance of the policies and procedures associated with 

internal control, the Peace Corps has been unable to maintain accountability and adequately 

ensure that medical supplies were not vulnerable to theft, loss, and spoilage. This lack of 
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OTHER ACCOMPANYING INFORMATION

effective oversight by post management contributed to opportunities for fraud, waste, and abuse. 

For example, a recent OIG review of an African post found that post management did not 

enforce policies and procedures or maintain accurate and complete inventory records and failed 

to document receipt and dispensing of controlled substances as required by federal regulations.

In addition, prescription medications at the post were being dispensed without consultation of a 

medical professional, potentially placing Volunteers at risk. Further, there was no accountability 

of over $165,000 worth of medical supplies it received from another post. Effective control over 

medical supplies is crucial to ensuring that Volunteers receive proper medical services and 

minimizing exposure to loss, theft, and misuse of expensive medical supplies including

controlled substances.
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Summary of Financial Statement Audit and Management Assurances Tables

Summary of Financial Statement Audit

Audit Opinion Unqualified

Restatement No

Material Weaknesses Beginning 

Balance

New Resolved Consolidated Ending Balance

Total Material 

Weaknesses

0 0 0 0 0

Summary of Management Assurances

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

Statement of 

Assurance

Unqualified

Material 

Weaknesses

Beginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

Total Material 

Weaknesses

0 0 0 0 0 0

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of 

Assurance

Unqualified

Material 

Weaknesses

Beginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

Total Material 

Weaknesses

0 0 0 0 0 0 

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of 

Assurance

Systems conform to financial management system requirements

NonConformancesBeginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

Total NonConformances0 0 0 0 0 0
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Improper Payments Information Act

The Improper Payments Information Act of 2002, Public Law Number 107 to 300, as amended by Public Law 

111 to 204, Improper Payments Elimination and Recovery Act, defines “significant improper payments” as 

thresholds of both (1) 2.5 percent of program outlays and $10,000,000 of all program or activity payments or (2) 

$100,000,000 (regardless of the improper payment percentage of total program outlays). The Peace Corps, a small 

agency, has no programs and activities that are risk-susceptible to the amounts in the above specified thresholds. 

Each agency payment, though, is subjected to a multi-tiered clearance process that requires review and signature 

of the requesting official who requests the goods or services and later certifies that the goods or services have been 

received, the applicable budget officer or administrative officer who ensures funds have been obligated, and the 

requesting official’s supervisor prior to release. 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 dated 

April 12, 2012 and prior Executive Orders and Memorandums. Payments by the overseas posts are processed 

through the International Treasury Services program of the Department of State’s Global Financial Services 

Centers, and payments made in the United States are processed through the U.S. Treasury, Kansas City Finance 

Center. Overseas payments are subjected to subsequent selective voucher sampling review in the headquarters 

where payment vouchers representing more than 80 percent of the dollars expended are fully reviewed. All 

requests for payments that exceed $2,500 are individually certified for accuracy and completeness. Further, 

a semi-annual system-generated report of all payments in the amount of $250,000 and above is extensively 

reviewed. No significant improper payments were identified during FY 2012 through any internal management 

reviews or by the external auditors, indicating that adequate internal controls are in place to prevent or detect 

improper payments.
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An photo of an Agriculture Volunteer working side by side with his 

community on an organic farming project in Uganda.

APPENDICES
150 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

APPENDICES

Appendix 1

Audit Significant Deficiencies Summary

Independent auditor CliftonLarsonAllen LLP issued the FY 2012 financial statement audit report 

beginning on page 122, through the Inspector General. While this audit report did not identify 

any material weaknesses or noncompliances with laws and regulation, two significant 

deficiencies in internal control were again identified. Significant Deficiency 1, Controls over 

Property, Plant, and Equipment Need Improvement, consists of four audit recommendations 

shown in the table below. Significant Deficiency 2, Information Systems Security Controls Need 

Improvement, consists of 20 audit recommendations also shown in the table. The table contains 

estimated dates for completion of each of the audit recommendations. Those audit 

recommendations issued in prior years not resolved during FY 2012 are identified as Prior Year 

(PY).

Significant Deficiency 1 – Controls over Property, Plant, and Equipment Need Improvement

Audit Recommendations Estimated

Completion

Enforce current policies and procedures to ensure complete and accurate asset listings; develop 

procedures to ensure assets are properly tagged upon receipt; and provide complete and timely 

data to record additions (PY) Q2 FY 13

Perform accuracy, verification, and completeness checks on capitalized property listings;

determine responsibility for managing and maintaining records of overseas IT assets (PY) Q2 FY 13

Develop procedures to ensure additions and disposals are recorded accurately and timely; provide

timely disposal data to ensure property balances are not overstated (PY) Q1 FY 13

Implement timekeeping policies and procedures to adequately track, capture, and record hours 

Worked on capital projects such as internal use software in development and construction in 

progress (PY) Q1 FY 13

Significant Deficiency 2 – Information System Security Controls Need Improvement

Audit Recommendations Estimated

Completion

Complete formal risk assessments for all major applications and general support systems (PY) Q4 FY 13

Implement encryption on all backup tapes Q2 FY 13

Reevaluate/update agency Business Impact Analysis to ensure that it accurately addresses 

deficiencies noted in disaster recovery tests (PY) Q2 FY 13

Test all system Contingency Plans to determine if procedures for reconstitution and recovery of 

systems are adequate (PY) Q4 FY 13

Provide guidance to posts regarding development of contingency plans and testing of scenarios

to determine if reconstitution and recovery of posts systems are adequate (PY) Q4 FY 13

Develop and implement media retention policies and procedures Q4 FY 13

Track media with unique identifiers upon receipt and prior to sanitization and disposal Q2 FY 13
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012 151

APPENDICES

(Continued)

Audit Recommendations Estimated

Completion

Implement formal procedures for requesting access to portable and mobile devices and include 

management approved access request forms documenting user’s approval and assigned

device (PY) Q1 FY 13

Develop a method to track assignments of portable and mobile devices by specific equipment

identifiers and individual assigned (PY) Q1 FY 13

Develop/implement procedures to ensure the timely return of portable and mobile devices and 

update equipment inventories to reflect current possession (PY) Q1 FY 13

Implement an access request procedure that includes managing network access requests via a 

centralized mechanism Q1 FY 13

Enhance account management procedures to include quarterly network account review 

requirements, identification of those network accounts which remain inactive for more than 

90 days, have never been logged into, represent generic or group accounts, or accounts with 

passwords not defined to expire, and analyze accounts identified as questionable (during the

review process) for reasonableness and disable or delete as necessary Q2 FY 13

Compare individuals currently granted data center access to the most recent listing of 

authorized individuals (provided by the OCIO) to ensure no discrepancies; follow up as 

needed to disable or delete access (PY) Q1 FY 13

Implement a formal procedure which includes assignment of department/individual 

responsibilities to review data center access reasonableness on a quarterly basis, and 

disable access if not authorized or no longer needed to perform an individuals’ position

responsibilities (PY) Q2 FY 13

Discontinue use of temporary badges to access the data center or maintain records of 

individuals assigned to each card including when issued, when returned, issued to whom, and 

who authorized issuance of the badge to individual (PY) Q1 FY 13

Integrate system change control procedures fully with the agencywide change control plan and

include methodologies for approving specific change types, identifying the use of the varying

change types, and identifying the process flows for each type of change Q3 FY 13

Update change control policies to ensure formal procedures for requesting, approving, coding, 

testing, and promoting a change are appropriately documented (PY) Q2 FY 13

Maintain mandatory security settings and baseline configurations for Microsoft Windows 

Servers (PY) Q4 FY 13

Implement FDCC/USGCB compliant group policies and ensure all workstations are 

compliant with the FDCC/USGCB requirement checklists Q4 FY 13

Report vulnerability scan results to appropriate individuals immediately following the 

scans and track for remediation purposes Q4 FY 13
152 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2012

APPENDICES

Appendix 2

Glossary of Acronyms

AC-2 Account Management*

AVS Annual Volunteer Survey

BIA Business Impact Analysis

CCB Change Control Board

CLA CliftonLarsonAllen LLP

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

DOVE Database of Volunteer Experience 

EAP Emergency Action Plan

EMA Europe, Mediterranean, and Asia

FDCC Federal Desktop Core Configurations

FECA Federal Employees Compensation Act

FISMA Federal Information Security 

Management Act

FMFIA Federal Managers’ Financial Integrity Act

FSN Foreign Service National

FY Fiscal Year

FYR Five Year Rule

GLOW Girls Leading Our World

GPRA-MA Government Performance and Results 

Modernization Act of 2010

HQ Headquarters

IAP Inter-America and Pacific

IPBS Integrated Planning and Budgeting 

System

IT Information Technology

MD&A Management’s Discussion and Analysis

M&E Monitoring and Evaluation

MOU Memorandum of Understanding

MP-5 Media Transport*

MS Manual Section

NGO Nongovernmental Organization

NIST National Institute of Standards and 

Technology

NIST SP National Institute of Standards and 

Technology Special Publication

OCFO Office of the Chief Financial Officer

OCIO Office of the Chief Information Officer

OGE U.S. Office of Government Ethics

OIG Office of Inspector General

OM Office of Management

OMB Office of Management and Budget

OMS Office of Medical Services

OPM Office of Personnel Management

OSIRP Office of Strategic Information, Research, 

and Planning

PAC Project Advisory Committee

PAR Performance and Accountability Report

PCR Peace Corps Response

PE-2 Physical Access Authorizations*

PEPFAR President’s Emergency Plan for AIDS Relief

PII Personally Identifiable Information

PP&E Property, Plant, and Equipment

PSC Personal Services Contractor

PTS Personnel Tracking System

RA-3 Risk Assessment*

RA-5 Vulnerability Scanning*

RPCV Returned Peace Corps Volunteer

SOP Standard Operating Procedure

SPA Small Project Assistance

TIS Technical Information Subcommittee

USAID U.S. Agency for International 

Development

USGCB U.S. Government Configuration Baseline

VDS Volunteer Delivery System

WADA Water and Development Alliance

*NIST SP 800-53
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