OFFICE OF 

INSPECTOR GENERAL 

Farm Credit Administration 

Strategic and Operating Performance Plan 

Fiscal Years 2014-2015 
Farm Credit Administration Office of Inspector General

1501 Farm Credit Drive

McLean, Virginia 22102-5090

September 11, 2013

The Honorable Jill Long Thompson, Board Chair and Chief Executive Officer

The Honorable Kenneth A. Spearman, Board Member

The Honorable Leland A. Strom, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, Virginia 22102-5090

Dear Board Chair Long Thompson and FCA Board Members Spearman and Strom:

The enclosed document is the Office of Inspector General’s (OIG) Strategic and Operating 

Performance Plan (SOPP) and Budgets for fiscal years 2014 and 2015. 

The SOPP includes the OIG’s audit plan, a fluid document that may be amended during the 

year. 

Please call me if you have any questions or comments.

Sincerely,

Elizabeth M. Dean

Inspector General

Enclosure
TABLE OF CONTENTS

 Page

Glossary of Terms............................................................................................................. 1

Introduction....................................................................................................................... 2

Strategic and Operating Performance Plan....................................................................... 3

Object Class Detailed Budget Overview............................................................................ 10

FY 2014 – Revised Budget and Justifications............................................................... 12

FY 2015 – Proposed Budget and Justifications ............................................................ 14

OIG Control System.......................................................................................................... 16

Audit Plan ......................................................................................................................... 20

Appendices

Appendix A—IRM Plan Summary Report ..................................................................... 23

Appendix B—FY 2014-2015 Products and Services Budget ........................................ 24
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 1

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

GLOSSARY OF TERMS

Act Farm Credit Act of 1971, as amended

Agency Farm Credit Administration

CCIG Council of Counsels to Inspectors General

CIGIE Council of the Inspectors General on Integrity and Efficiency

FCA Farm Credit Administration

FCA Board Farm Credit Administration Board

FCS Farm Credit System

FISMA Federal Information Security Management Act

FLETC Federal Law Enforcement Training Center

FTE Full-Time Equivalent

FY Fiscal Year

IDP Individual Development Plan

IG Inspector General (FCA)

IG Act Inspector General Act of 1978, as amended

IRM Information Resources Plan

IT Information Technology

OE Office of Examination

OIG Office of Inspector General (FCA)

OMB Office of Management and Budget

SOPP Strategic Operating and Performance Plan

System Farm Credit System
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 2

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

INTRODUCTION

The Farm Credit Administration (FCA or Agency) Office of Inspector General (OIG) was 

established on January 29, 1989, as a result of the 1988 amendments to the Inspector General 

Act of 1978, as amended (IG Act). The IG Act establishes specific responsibilities and authorities 

for all Federal Inspectors General. The FCA Inspector General (IG) has a dual reporting 

responsibility to both the FCA Board and the Congress. 

The OIG analyzes Agency performance through audits, inspections, and evaluations and provides 

conclusions and recommendations designed to strengthen Agency effectiveness and efficiency. 

The OIG also reviews existing and proposed legislation and regulations relating to Agency 

programs and operations to assess the impact on the Agency’s economy and efficiency.

The OIG contracts with an outside accounting firm for the annual audit of FCA’s financial 

statements, internal control over financial reporting, and compliance with laws and regulations 

relating to the determination of financial statement amounts. The accounting firm’s opinion letters 

and accompanying Agency financial statements and notes are included in the Agency’s annual 

Performance and Accountability Report. The OIG conducts the annual evaluation of the Agency’s 

compliance with the Federal Information Security Management Act (FISMA) and issues a report 

that is submitted to the Agency for further submission to the Office of Management and Budget

(OMB). 

The OIG also maintains a Hotline for reporting allegations of fraud, waste, abuse, and 

mismanagement. When there are alleged administrative or criminal violations relating to Agency 

programs or personnel, the OIG will timely and effectively investigate and report. 

Further, the OIG conducts a quarterly confidential survey of Farm Credit System (FCS or System) 

institutions regarding the effectiveness of the Agency’s examination function and the examiners. 

The OIG issues a quarterly report and annual summary report on survey results to the Chief 

Examiner and the FCA Board.

OIG’s FY 2014 Budget Request

Section 6(f)(1) of the IG Act requires an Inspector General to highlight certain aspects of the 

Inspector General’s budget request to the head of the department or designated Federal entity to 

which the Inspector General reports. Section 6(f)(2) requires, in the case of FCA, the FCA Board 

to highlight the same aspects of the Inspector General’s budget request when transmitting the 

Agency’s budget to the President.

For the Inspector General’s revised FY 2014 budget submission, the OIG’s budget information 

required to be highlighted is as follows:

• The aggregate budget request for the OIG is $1,264,912.

• The amount needed for OIG training is $19,110 (tuition).

• The amount needed to support the Council of the Inspectors General on Integrity and 

Efficiency (CIGIE) is $1,000.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 3

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

STRATEGIC AND OPERATING PERFORMANCE PLAN

MISSION

The OIG’s work products and presence will promote economy, efficiency, and integrity in Agency 

operations.

CORE VALUES

• Integrity – Giving straightforward, objective and balanced advice, motivated by a desire to 

improve conditions and do what is right.

• Excellence – Producing high quality work and products that are timely and relevant.

• Knowledge – Acquiring and expanding relevant skills and expertise.

• Responsibility – Being accountable for our actions, work, and results and holding our 

customers to the same.

CORE COMPETENCIES

• Teamwork – We combine our staff skills and outside expertise to accomplish our mission.

• Technology – We enhance the effectiveness of our work with the practical application of 

technology.

• Broad Vision – We use our FCA knowledge to focus efforts on significant issues within 

the Agency.

• Customer Centered – We are independent and believe we are successful when we have 

helped FCA become more successful.

ASSUMPTIONS

• Changing work force. There will continue to be periodic changes in FCA’s Board 

composition and Agency organization, and ongoing changes in FCA staffing, e.g., new 

hires and retirements. The latter may result in the loss of corporate knowledge, e.g., that 

gained from the Agency’s regulatory experience during the agriculture crisis of the mid 

1980s through the early 1990s and from regulatory evolution since that time. The FCS 

and the credit needs of rural America will continue to evolve and change. The financial 

and banking industry will become a different provider of financial services coming out of 

the financial services industry crisis and enacted remedial measures. As a result, the 

Agency’s methodology in achieving its mission will continually evolve and the OIG will 

need to remain vigilant over Agency performance and internal controls.

• Changing work environment. As FCA leverages technology to improve its processes, 

the OIG will have to be positioned to evaluate new risks in internal controls and security 

measures. As a result, the OIG will ensure its expertise in technology to effectively 

perform the function.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 4

• Limited budget resources. Budget pressures on the OIG will be equivalent to those 

faced by FCA as a whole. The OIG will have to use an efficient mix of its core 

competencies and external resources to fulfill its mission. Technology will continue to 

cause change in processes and our approach to work.

• Farm Credit Act. Changes in the agricultural and the financial industries will cause the 

FCS to seek greater flexibility in law and regulations. The OIG will continue to ensure that 

the FCA is ever mindful of its arm’s length regulatory role and mission to ensure the 

System’s service to rural America in a safe and sound manner, and will continue to review 

and may make recommendations regarding laws and regulations.

PRODUCTS AND SERVICES, AND GOALS

1. Audit and evaluate the Agency’s programs and operations to promote economy, 

efficiency, and effectiveness.

• Deliver quality audit and inspection products and services that are useful to the 

Board, management, and the Congress.

• Provide technical advice and assistance to Agency officials in developing sound 

management information and financial reporting systems and in streamlining 

programs and operations.

• Continuously improve OIG staff, products, and internal office administration.

2. Investigate observed, alleged, or suspected wrongdoing to prevent and detect 

fraud, waste, abuse, and mismanagement in Agency programs and operations.

• Effectively investigate alleged administrative and criminal violations relating to FCA 

programs and personnel.

• Educate employees on their responsibility to report wrongdoing to the OIG.

• Provide relevant information on results of investigative activities to appropriate 

parties. 

3. Review and make recommendations, as necessary, regarding existing and 

proposed legislation and regulations relating to Agency programs and operations 

and the Inspectors General community.

• Maintain an effective program for reviewing and commenting on proposed and 

existing legislation and regulations affecting the Agency.

4. Work with the Agency head (FCA Board) and Congress to improve program 

management, and with the Inspectors General community and other related 

organizations to address government-wide issues.

• Agency personnel understand and accept OIG’s role within FCA and the 

Inspectors General community.

• OIG staff provide leadership to organizations directly contributing to the Inspectors 

General community.

• OIG staff contribute to special projects for improving the Agency, the Inspectors 

General community, and the Federal government.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 5

Farm Credit Administration

Office of Inspector Gene r a l

Fiscal Year s 2 0 1 4 - 2 0 1 5

AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS

OIG GOAL

AGENCY GOALS 1 AND 2

PERFORMANCE MEASURES OUTCOME

1. Deliver quality audit, inspection, and 

evaluation products and services 

that are useful to the FCA Board,

management, and Congress.

Audits, inspections, and evaluations are relevant. Audit 

coverage includes all mandated audits and at least 75 

percent of those suggested by the FCA Board and 

management.

Risk is addressed. 100 percent of OIG audits are 

performed in high risk/high dollar programs and activities 

and/or are tied to the Agency strategic planning goals.

Products are timely, i.e., average time to complete audits 

and issue draft reports will not exceed 6 months.

Audits are constructive. Audit products contain 

recommendations or agreed-upon actions to improve 

Agency operations, as necessary. The Agency accepts 

at least 90 percent of the OIG audit recommendations.

FCA programs and operations are more 

effective.

FCA continues to receive unqualified financial 

audits.

Waste in Agency programs and operations is 

reduced. Better business practices are 

initiated.

Agency compliance with laws, regulations, and 

internal policies and procedures.

The Agency’s stature and reputation are 

maintained at a high level in the eyes of the 

Congress, the Administration, the FCS, FCA 

employees, and the public.

FCA is more effective in carrying out its 

mission.

The OIG is more effective in promoting 

economy, effectiveness, and efficiency within 

the Agency.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 6

Farm Credit Administration

Office of Inspector Gene r a l

Fiscal Year s 2 0 1 4 - 2 0 1 5

AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIONS

OIG GOAL

AGENCY GOALS 1 AND 2

PERFORMANCE MEASURES OUTCOME

2. Provide technical advice and 

assistance to Agency officials in 

developing sound management 

information and financial reporting 

systems and in streamlining 

programs and operations.

The IG engages in discussion with the FCA Board on 

matters of policy direction or administrative priorities.

The OIG performs analyses and provides technical 

advice to management concerning accounting, 

management systems and controls, and performance 

measures.

FCA continues to receive an unqualified 

financial audit. 

OIG input and advice contributes to Agency 

decisions and actions that are more complete 

and valid at their inception.

Increase in management requests for advice, 

audit work, or technical assistance.

3. Continuous improvement of the OIG 

staff, products, and internal office 

administration. Quality is highly 

valued.

OIG training ensures the technical proficiency of staff.

The OIG implements administrative improvements 

identified through reviews of Agency programs and 

through staff involvement with the professional 

community.

The OIG’s opportunity to facilitate positive 

change within the Agency is enhanced by the 

quality and credibility of OIG products and 

advice.

Peer review reports provide an unqualified

opinion that the OIG audit and investigative 

functions meet or exceed quality audit 

standards prescribed by the U.S. Government 

Accountability Office and CIGIE.

Audit, inspection, and other reports are made 

public upon issuance and the OIG uses an 

email mechanism to alert those on the mailing 

list of new publications.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 7

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

INVESTIGATIONS

OIG GOAL

 AGENCY GOALS 1 AND 2

PERFORMANCE MEASURE OUTCOME

1. Effectively investigate and report 

administrative and criminal 

violations relating to FCA 

programs and personnel to 

Agency officials, the Attorney 

General (when appropriate), and 

Congress.

Investigative reports are timely and presented in an 

objective and factual manner. Memoranda are issued to 

management describing internal control weaknesses or 

program deficiencies found during the investigative process 

with suggestions to prevent and/or detect future 

wrongdoing.

Administrative action, convictions, or pleas are 

obtained for employees and/or contractors 

found guilty of wrongdoing.

Management actions taken against employees 

serve as deterrent to future wrongdoing.

FCA internal policies, procedures, and controls 

are strengthened to prevent and/or detect 

future wrongdoing.

Public confidence in the integrity of FCA 

programs and internal operations is 

heightened.

2. Cause FCA employees and 

managers to recognize their 

responsibility and report observed 

or suspected wrongdoing to the 

OIG.

Allegations of wrongdoing are received in a timely manner 

and are supported by specific information.

Investigations are more successful because 

they are initiated in a timely manner and have 

better information.

FCA employees are more willing to report real 

or suspected wrongdoing because they trust 

the competence, fairness, and confidentiality of 

OIG’s investigations.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 8

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

LEGISLATIVE AND REGULATORY REVIEW

OIG GOAL

AGENCY GOALS 1 AND 2

PERFORMANCE MEASURE OUTCOME

1. Maintain an effective program for 

reviewing and commenting on 

proposed and existing legislation and 

regulations affecting the Agency and 

the IG community.

Processes are established and documented for 

identifying and circulating (as appropriate) relevant 

documents. 

Constructive comments on relevant documents are 

submitted by the deadlines requested by the office, 

Agency, or staff circulating comments.

OIG input is part of the decision making 

process in approving or amending legislation, 

regulations, circulars, and other policy 

positions.

Constructive criticism and creative alternatives 

offered in OIG comments improve the quality 

and usefulness of documents initiated by the 

Agency.

FCA Board and management are informed 

about the status of new or pending legislation 

or regulations initiated externally.

Regulations reviewed by OIG are noted in the 

OIG’s semiannual reports to Congress.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 9

Farm Credi t Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

OUTREACH PROGRAM

OIG GOAL

 AGENCY GOALS 1 AND 2

PERFORMANCE MEASURE OUTCOME

1. Promote OIG’s role within the FCA 

and the community at large.

Develop and maintain educational brochures or 

pamphlets describing OIG roles and activities.

Facilitate feedback from Agency employees and refine 

products and practices based on the feedback to OIG 

products and educational materials.

Agency employees’ acceptance of and 

cooperation with OIG activities is improved 

through better understanding. OIG programs 

and products are improved through feedback 

from Agency employees. Audit followup is 

improved.

2. Provide leadership to organizations 

directly contributing to the IG 

community, the Agency, and the 

Federal government.

Time and resources are provided to OIG staff members 

as an incentive to contribute to the Agency and outside 

organizations by serving on committees and holding 

offices.

OIG networking opportunities have resulted in an 

expanded consideration of FCA ideas and practices by 

community contacts and experts. The OIG has shared 

telecommuting policies, hotline procedures, performance 

measures and performance contracts and evaluation 

methods. Likewise, FCA benefits from the opportunity to 

benchmark practices in other agencies.

Projects and activities of adjunct organizations 

such as the Association of Government 

Accountants, Institute of Internal Auditors, 

CIGIE Training Institute, and Council of 

Counsels to Inspectors General (CCIG) 

meetings and forums are improved by OIG 

staff contributions and participation.

FCA programs and operations are more 

effective and efficient.
Detailed Budget

Fiscal Years 2014 and 2015

OBJECT CLASS SUB CLASS OBJECT DESCRIPTION FTE 4.80

FY 2014

FTE 4.80

FY 2015

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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 10

1100 Total Personnel Compensation 111001 Permanent Full-Time $720,818 $720,818

113009 Other than Permanent Full-Time $145,421 $145,421

115201 Overtime $0 $0

115301 Performance, Incentives and Other Awards $4,000 $4,000

Subtotal $870,239 $870,239

1200 Total Personnel Benefits 121103 TSP Match $34,650 $34,650

121107 Disability Insurance Contributions $3,387 $3,390

121110 Wellness, Flex-care/Life Cycle Programs $6,500 $6,500

129999 Benefits Generated from Payroll $212,388 $217,950

121206 Public Transportation Initiatives $0 $0

121207 Student Loan Repayments $0 $0

121599 Relocation Payments Under Object Code 1200 $0 $0

Subtotal $256,925 $262,490

1300 Benefits Former Personnel 130002 Unemployment Compensation $0 $0

Subtotal $0 $0

2100 Travel and Transportation of Persons 210112 Local Travel $5,500 $5,500

210199 Temporary Duty Travel $6,835 $7,990

210402 Relocation Travel Expenses $0 $0

210403 Relocation House Hunting $0 $0

Subtotal $12,335 $13,490

2200 Transportation of Things 220101 Freight and Express Mail $0 $0

220102 Freight and Express Mail - Contract Mail Services $200 $200

220201 Transportation of Household Goods $0 $0

Subtotal $200 $200

2300 Rent, Communications, Utilities and Misc. Charges 232001 Rent/Lease - Space Lodging $0 $0

233101 Utilities - Other than Telephone and Comm. Svcs. $0 $0

233201 ADP Equipment and Software Rental $0 $0

233301 Telephone and Communication Services $680 $680

233304 Wireless Communication Services $840 $840

233401 Non-ADP Equipment Rental $0 $0
Detailed Budget

Fiscal Years 2014 and 2015

OBJECT CLASS SUB CLASS OBJECT DESCRIPTION FTE 4.80

FY 2014

FTE 4.80

FY 2015

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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 11

Rent, Communications, Utilities and Misc. Charges 233501 Postage – USPS $0 $0

 continued 233503 Postage Meter Rental $0 $0

233504 Messenger and Courier Services $0 $0

Subtotal $1,520 $1,520

2400 Printing and Reproduction 240101 U.S. Government Printing Office (GPO) $0 $0

240201 Commercial Printers/Photographers $500 $500

240301 Publications of Notices/Classified Advertising $0 $0

Subtotal $500 $500

2500 Other Contractual Services 251001 Consulting Services $100,000 $100,000

252004 Miscellaneous Services $1,639 $1,710

252007 Training - Commercial $9,565 $8,055

253001 Services of Other Government Agencies $1,000 $1,000

253005 Training - Government $9,545 $10,535

254001 Renovating Office Space $0 $0

257101 Operation/Maintenance - Non ADP Equipment $0 $0

257102 Operation/Maintenance - ADP Equipment/Software $0 $0

257202 Storage of Household Goods $0 $0

Subtotal $121,749 $121,300

2600 Supplies and Materials 260101 Supplies $500 $500

260102 Subscriptions, Publications and Training Materials $220 $220

260201 ADP Supplies $125 $180

260301 Fuel $0 $0

Subtotal $845 $900

3100 Equipment 310902 Non-IT Equipment, Furniture, Fixtures $0 $0

310202 Software $500 $500

310302 IT Equipment $99 $399

Subtotal $599 $899

4200 Insurance Claims and Indemnities 420001 Insurance Claims and Indemnities $0 $0

Subtotal $0 $0

TOTAL $1,264,912 $1,271,538
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 12

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

FY 2014 REVISED BUDGET AND JUSTIFICATIONS

TOTAL OFFICE BUDGET........................................................................................$1,264,912

Total approved IRM Plan amount included in Office Budget........................................$2,464

1100 Personnel Compensation.................................................................................$870,239

Amount required to fund salaries ($866,239) of OIG staff (4.80 Full Time Employees [FTE]) 

charged with conducting audits, inspections, evaluations, and investigations related to Agency 

programs and operations. We are also responsible for reviewing existing and proposed 

legislation and regulations to evaluate their impact on the Agency. Funds ($4,000) are also 

allocated for possible cash awards.

1200 Personnel Benefits............................................................................................$256,925

Benefits are the direct result of salaries, consistent with employees’ retirement systems, 

health and other related benefits.

1300 Benefits for Former Personnel................................................................................... $0

2100 Travel and Transportation of Persons...............................................................$12,335

OIG staff will use these funds for travel ($6,835) related to scheduled Individual Development 

Plans (IDP) training and local travel ($2,500) to professional association meetings, for 

example. Travel funds ($3,000) are also included for local and/or temporary duty travel 

related to possible investigative matters.

2200 Transportation of Things........................................................................................ $200

The amount is for express mail services throughout the year.

2300 Rent, Communications, Utilities, and Miscellaneous .........................................$1,520

233301 Approved IRM Plan........................................................................................... $680

233304 Approved IRM Plan........................................................................................... $840

These funds will cover Smartphone voice/data services for the IG ($840), telecommuters’ 

access expense ($360), and maintenance of an independent internet account for the 

anonymous HOTLINE account ($320). The independent internet account is used for 

confidential reporting of fraud, waste, abuse, and mismanagement. 

2400 Printing and Reproduction ..................................................................................... $500

Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the 

items.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 13

Farm Credit Administration

Office of Inspector General

Fiscal Years 2 0 1 4 - 2 0 1 5

FY 2014 REVISED BUDGET AND JUSTIFICATIONS 

2500 Other Contractual Services ..............................................................................$121,749

Tuition funds ($9,565) from non-government sources are for staff training. Government tuition 

funds ($9,545) are for staff training at Government sponsored sources. Individual training 

classes are a mandatory requirement of the Government Audit Standards (Yellow Book) for 

auditors and of the bar association for the IG and Counsel. Membership fees ($1,639) will 

cover the dues for professional organizations to which OIG staff belong. 

Consulting services are utilized to assist OIG staff in the review of programs, including the 

FCA financial statement audit ($75,000) and possible general contracting needs ($25,000). 

Lastly, $1,000 is budgeted for the support of CIGIE. 

2600 Supplies and Materials ........................................................................................... $845

260102 Approved IRM Plan........................................................................................... $220

260201 Approved IRM Plan........................................................................................... $125

To purchase on-going subscriptions in the IRM Plan ($220), and one laptop carrying case on 

wheels ($125). General office supply funds ($500) are also included. 

3100 Equipment ............................................................................................................... $599

310202 Approved IRM Plan........................................................................................... $500

310302 Approved IRM Plan............................................................................................. $99

To purchase one replacement desktop printer ($99) as necessary to support OIG programs, 

and an additional $500 for software. 

4200 Insurance Claims and Indemnities............................................................................. $0
_________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2014-2015 14

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

FY 2015 PROPOSED BUDGET AND JUSTIFICATIONS

TOTAL OFFICE BUDGET........................................................................................$1,271,538

Total approved IRM Plan amount included in Office Budget........................................$2,819

1100 Personnel Compensation.................................................................................$870,239

Amount required to fund salaries ($866,239) of OIG staff (4.80 Full Time Employees [FTE]) 

charged with conducting audits, inspections, evaluations, and investigations related to Agency 

programs and operations. We are also responsible for reviewing existing and proposed 

legislation and regulations to evaluate their impact on the Agency. Funds ($4,000) are also 

allocated for possible cash awards.

1200 Personnel Benefits............................................................................................$262,490

Benefits are the direct result of salaries, consistent with employees’ retirement systems, 

health and other related benefits.

1300 Benefits for Former Personnel................................................................................... $0

2100 Travel and Transportation of Persons...............................................................$13,490

OIG staff will use these funds for travel ($7,990) related to scheduled IDP training and local 

travel ($2,500) to professional association meetings, for example. Travel funds ($3,000) are 

also included for local and/or temporary duty travel related to possible investigative matters.

2200 Transportation of Things........................................................................................ $200

The amount is for express mail services throughout the year.

2300 Rent, Communications, Utilities, and Miscellaneous .........................................$1,520

233301 Approved IRM Plan........................................................................................... $680

233304 Approved IRM Plan........................................................................................... $840

These funds will cover Smartphone voice/data services for the IG ($840), telecommuters’ 

access expense ($360), and maintenance of an independent internet account for the 

anonymous HOTLINE account ($320). The independent internet account is used for 

confidential reporting of fraud, waste, abuse, and mismanagement. 
_________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2014-2015 15

Farm Credit Administration

Office of Inspector General

Fiscal Years 2 0 1 4 - 2 0 1 5

FY 2015 PROPOSED BUDGET AND JUSTIFICATIONS

2400 Printing, Publications and Advertisement............................................................. $500

Cost of printing brochures, pamphlets, business cards, etc. when FCA cannot produce the 

items.

2500 Other Contractual Services ..............................................................................$121,300

Tuition funds ($8,055) from non-government sources are for staff training. Government tuition 

funds ($10,535) are for staff training at Government sponsored sources. Individual training 

classes are a mandatory requirement of the Yellow Book for auditors and of the bar 

association for the IG and Counsel. Membership fees ($1,710) will cover the dues for 

professional organizations to which OIG staff belong. 

Consulting services are utilized to assist OIG staff in the review of programs, including the

FCA financial statement audit ($75,000) and possible general contracting needs ($25,000). 

Lastly, $1,000 is budgeted for the support of CIGIE. 

2600 Supplies and Materials ........................................................................................... $900

260101 Approved IRM Plan........................................................................................... $220

260201 Approved IRM Plan........................................................................................... $180

To purchase on-going subscriptions in the IRM Plan ($220), one laptop battery ($180). 

General office supply funds ($500) are also included. 

3100 Equipment ............................................................................................................... $899

310202 Approved IRM Plan........................................................................................... $500

310302 Approved IRM Plan........................................................................................... $399

Purchase software as necessary to support OIG applications ($500), one Smartphone device 

($300), and one desktop printer as needed ($99).

4200 Insurance Claims and Indemnities............................................................................. $0
_________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2014-2015 16

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

OIG CONTROL SYSTEM

STATUTORY ROLE AND RESPONSIBILITIES

The OIG was created within the FCA by the 1988 amendments to the IG Act as an independent 

unit to: 1) conduct and supervise audits and investigations; 2) promote economy, efficiency and 

effectiveness, and to prevent fraud and abuse in program administration; and 3) keep the FCA 

Board and the Congress fully informed about problems and deficiencies and the progress in 

correcting them.

The IG Act specifies the IG’s duties, responsibilities, and authorities. The IG Act precludes the 

OIG from performing any Agency program operating function; rather, the OIG advises 

management and the Congress about ways to improve programs. The IG works with the FCA 

Board to promote positive change in the Agency’s programs and operations.

OIG STAFFING NEEDED TO DELIVER PRODUCTS AND SERVICES

This section describes the staffing of the OIG. It also discusses how the OIG is organized to 

produce the products and services appropriate to fulfill its responsibilities.

The Inspector General provides leadership, policy direction, and general management and 

supervision of the OIG staff. The IG is also an advisor to the FCA Board and the principal 

spokesperson for the OIG, coordinating its activities and issues with other agencies. The IG 

position is to be comparable in grade with the FCA senior level executives. This is staffed as a 

permanent full-time position.

The Deputy Inspector General and Counsel to the Inspector General provides independent 

legal advice, analysis of proposed legislation and regulations, and reviews OIG products for 

legal sufficiency. The Counsel represents and defends OIG in all legal issues. The Counsel 

also participates in inspections and evaluations as necessary. The Counsel directs the 

investigative function. While the position is currently unfilled, measures will be taken to fill the 

position.

The Senior Auditor position is devoted primarily to performance audits, inspections, and 

management analyses, focusing on the significant management challenges of the Agency. 

Also, this position oversees the contractor performing the annual financial, internal control, and 

compliance audit of the Agency on behalf of the OIG. This is staffed as a permanent full-time 

position.

A Senior Information Technology (IT) Auditor position was created with the discontinuance 

of the Criminal Investigator position. This position focuses on audits and inspections related to 

the broad range of the Agency’s IT policies, processes, and security, and also performs the 

annual FISMA review. This position is currently staffed as a permanent part-time position at 

0.80 FTE.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 17

The Administrative Assistant is responsible for assisting the IG in budgeting, information 

resources planning, procurement, training, administrative matters relating to personnel 

management, and for general administrative support to the rest of the staff. The position is also 

responsible for assisting the IG in the completion of the Semiannual Report to the Congress and 

the quarterly and annual reports on the OIG Survey of FCS institutions regarding the Agency’s

examination function. This is staffed as a permanent full-time position.

All currently filled positions in the OIG are staffed with well qualified personnel.

OIG PRODUCTS AND SERVICES

Audits and Inspections are the primary vehicles through which the OIG develops 

recommendations to promote economy, efficiency, and effectiveness in Agency programs and 

prevent waste and mismanagement. The OIG also provides input to the FCA Board or 

managers through management letters and confidential Observations.

The auditors are devoted full time to audits and inspections. The Counsel to the IG may also 

perform inspections and evaluations focusing on evaluating administrative and operational 

issues.

The OIG augments its core staff with contractors when subject matter expertise is needed to 

perform a particular task. 

Investigations encompass all OIG activities designed to detect or prevent fraud and abuse in 

administering Agency programs. Investigations are normally distinguished from other 

evaluations in that they are normally directed at individuals rather than programs and activities. 

However, some of the OIG’s investigative actions are directed at preventing fraud and abuse 

through improving the effectiveness of management and administrative controls and practices, 

especially in high-risk areas. The OIG also manages a HOTLINE to enable FCA employees 

and the public to more easily report wrongdoing.

Legislative and Regulatory Review includes the review and comment on proposed and 

existing legislation and regulations as they may affect the Agency. This review activity is 

reported in the Semiannual Report to the Congress.

Outreach directs the OIG to focus attention to improving the Agency, the Inspectors General

community, and the public’s awareness of the FCA OIG’s role. This is accomplished by 

promoting Agency understanding of the OIG’s role, providing leadership to organizations 

contributing to the IG community, and by participating in special projects. The OIG also 

develops educational information describing the roles and activities of the OIG and provides 

information to the public through the OIG web site.

Other OIG Functions include internal policy direction and leadership and advice to the 

Chairman and management about Agency programs and operations. The IG is also 

responsible for fully informing the FCA Board and the Congress about fraud and other serious 

problems in Agency programs, including management’s progress in carrying out corrective 

actions.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 18

OIG’S MISSION AND IMPLICATIONS FOR STAFFING

It is the OIG’s mission that its work products and presence promote economy, efficiency, and 

integrity in Agency operations. The OIG will accomplish this by being a leader and catalyst 

identifying Agency challenges and opportunities. We will strive to:

• deliver products and services that are competent, objective, timely, and relevant;

• maintain a customer focus which is responsive to the needs of decision-makers; and 

• provide a positive working environment that encourages us to be innovative and 

reach our potential through teamwork and candid communication.

If we are to fulfill these statements, each staff member must broaden and refine their skills and 

abilities, adopt a creative approach to problem solving, and take the initiative to influence 

management. In that way, management will be receptive to our conclusions and 

recommendations. Staff must be supported through OIG management’s actions, equipment 

and training, and mutual support from office teammates.

STAFFING ASSESSMENT AND STRATEGIES

The OIG’s diverse responsibilities prescribed by the IG Act dictate the needed competencies 

within the OIG staff. The independent nature of the OIG role also has implications for staffing. 

Even with a very small staff, the OIG can deliver its products and services by maintaining a high 

level of cross training and a broad base of expertise in audit, investigations, law, management, 

and administration. The 4.80 FTEs in this plan constitute the critical mass necessary to credibly 

perform OIG’s responsibilities. The OIG established the current staffing pattern after careful 

analysis of the specialized nature of the OIG’s responsibilities and volume of work. Downsizing 

over the years has reduced the OIG to a level at which any further reduction may adversely 

affect the OIG’s accomplishment of its mission.

OIG staff performs evaluations and investigations under the general supervision of the IG. 

These assignments are often unlike previous assignments and need creative thinking in 

planning and developing the project, and mature judgment in developing conclusions and 

recommendations and defending them before management.

The current OIG staff profile represents a high level of diversity. When filling future OIG 

vacancies, we will make a concerted effort to attract a diverse pool of qualified candidates. We 

share the Agency’s affirmative employment objectives and believe that a diverse staff is a 

critical factor in the long term success of an organization.

STAFFING OBJECTIVES AND STRATEGIES

Objectives

• Retain and refine the skills and competencies represented by the current staff profile.

• Employ the best qualified applicant while ensuring the broadest possible pool of 

applicants.

• Increase effectiveness of collaboration among OIG staff members.

• Expand OIG staff participation in nonprogram activities of the Agency.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 19

Strategies

• Staff will identify and participate in training and professional development activities 

identified in individual development plans to retain and enhance skills.

• Teamwork training will occur regularly to promote collaboration among OIG staff.

• Agency affirmative employment objectives will be considered in filling all OIG 

vacancies to achieve appropriate diversity.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 20

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

AUDIT PLAN

AUDITS, INSPECTIONS, AND EVALUATIONS – FISCAL YEAR 2014 AND 2015

This audit plan identifies potential audit, inspection, and evaluation areas. This plan was 

discussed with the FCA Board to afford the FCA Board the opportunity to comment and offer 

suggestions for additional audit, inspection, and evaluation areas.

OIG audits, inspections, and evaluations provide assurance to the FCA Board that programs are 

operating effectively with appropriate controls. Audit, inspection, and evaluation activities will 

most likely be selected from the areas listed below. However, actual audits, inspections, and 

evaluations conducted may vary in order to be responsive to changing needs or circumstances.

Annual Audits and Evaluations

Audit of FCA’s Financial Statement

The OIG contracts with an independent accounting firm to conduct an audit of FCA’s financial 

statement, internal control over financial reporting, and compliance with laws and regulations 

relating to the determination of financial statement amounts. The OIG will deliver an audit 

opinion as of September 30, 2014 and 2015 respectively. The OIG has ensured that its 

independent accounting firm has incorporated in its audit plan a work schedule that will provide 

an appropriate audit scope and deliverables within appropriate time frames.

Federal Information Security Management Act (FISMA) Evaluations

FISMA requires the agency program officials, Chief Information Officers and Inspectors General 

to conduct annual evaluations of their respective department’s or agency’s information security 

program and report the results to OMB. For FYs 2014 and 2015, the OIG Senior IT Auditor will 

conduct the FISMA evaluation at FCA.

FY 2014

Evaluation of the Office of Examination’s (OE) Training & Commissioning Program (Audit)

The knowledge and skill level required to conduct sound examination and effective supervision 

of System institutions needs to evolve and keep pace with the changing financial marketplace. 

We will evaluate the OE’s training and commissioning program in two phases:

1. We will evaluate whether the OE’s commissioning program is operating efficiently and 

complies with applicable policies and procedures.

2. We will evaluate whether the OE’s commissioning curriculum and training is equipping 

OE’s staff with the knowledge and skills needed to examine System institutions.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 21

Training and Conference Expenses (Audit)

The Agency offers its employees a variety of training and educational opportunities to 

complement work experiences and achieve better organizational and individual performance. 

The objective of this audit will be to examine the Agency’s controls over its academic training 

program. In particular, we will review whether costs for training and conferences are reasonable, 

if courses relate to employees’ duties and the Agency mission, and if controls are in place to 

ensure effective management of training, conferences, and related travel expenditures. 

Government Charge Card and Abuse Prevention Act of 2012 (Inspections)

The Government Charge Card and Abuse Prevention Act of 2012 requires some Inspectors 

General to conduct periodic risk assessments and audits of agency purchase card, travel card, 

and centrally billed travel card programs. Although FCA does not meet the dollar threshold for 

some of these audits or reviews, a significant amount of Agency funds are used for purchase 

card transactions and travel expenses. 

1. Management of Purchase Cards

We will identify and analyze risks of illegal, improper, or erroneous purchases on 

Agency purchase cards. Additionally, we will determine if FCA established and 

maintained appropriate internal controls to ensure the proper, efficient, and effective use 

of Agency purchase cards.

2. Management of Travel Cards

We will analyze risks of illegal, improper, or erroneous purchases and payments on 

individual travel cards. Additionally, we will determine if FCA established and 

maintained appropriate internal controls to ensure the proper, efficient, and effective use 

of travel charge cards.

3. Management of Centrally Billed Travel Accounts

We will determine if FCA established and maintained appropriate internal controls for 

centrally billed travel charges.

FY 2015

Risk-Based Examination Process

System institutions are examined using the risk-based examination concept. This examination 

approach seeks to stay abreast of risk in System institutions and focus examination efforts and 

resources in areas that could materially impact the safety and soundness of the institution. The 

objective of this audit will be to assess the adequacy of the Agency’s risk-based examination 

process.

Information Technology Investments Performance Measures (Inspection)

The Agency has made significant IT investments such as Live Meeting, Microsoft 

Communicator, and High Definition videoconferencing. As the Agency continues to invest in 

technology to improve operations, measures need to be in place to ensure these investments 

are being fully utilized and projected benefits realized. We will determine whether the Agency 

has developed effective performance measures to capture the benefit of IT investments.
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 22

Human Capital (Audit)

An effective human capital program is essential to ensure the Agency has the right people with 

the right skills to accomplish its mission. The objective of this audit will be to assess the 

adequacy of the Agency’s human capital plan and the effectiveness of its implementation. This 

includes an evaluation of Agency effectiveness in hiring and developing staff and of the 

continuity of leadership within the Agency. 

Beyond FY 2015

• Awards

• Background Investigations

• Bonuses

• Delegations

• Diversity

• eArchives

• Efficiency of the Office of the General Counsel Legal Opinion Process

• eOPF

• FCA Strategic Plan

• FCS Loan Data System

• General Control Review: Access Controls

• General Control Reviews: Segregation of Duties

• General Control Reviews: Software Development and Change Control

• General Control Reviews: System Software

• Inappropriate Use of Agency IT Resources

• OE Field Office Inspections

• Outsourcing

• Property Plant and Equipment Review

• Recruitment and Retention of Examiners

• Review of OE Organizational Structure and Work Processes

• Review of the Consolidated Reporting System

• Safeguarding Personally Identifiable Information, including Social Security Numbers

• Specialization and Certification

• Travel Expenses
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 23

APPENDIX A

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

IRM PLAN SUMMARY

IRM Budget Category Object

Code

FY 2014

Costs

FY 2015

Costs

FY 2016

Costs

FY 2017

Costs

FY 2018

Costs Total Costs

Telecommunications Rentals 233301 680 680 680 680 680 3,400

Wireless Communications 233304 840 840 840 840 840 4,200

Subscriptions and Publications 260102 220 220 220 220 220 1,100

ADP Supplies 260201 125 180 485 180 485 1,455

Software 310202 500 500 500 500 500 2,500

IT Equipment 310302 99 399 99 399 99 1,095

Total 2,464 2,819 2,824 2,819 2,824 13,750
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 24

APPENDIX B

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

FY 2014 REVISED PRODUCTS AND SERVICES BUDGET

This represents the allocation of budget dollars and FTEs to OIG’s products and services. 

Management, administrative support, and leave are disbursed across the four products and 

services.

Products/Services Budget % Budget FTE % FTE

Audits, Inspections, and Review Products $1,024,579 81% 3.7 81%

Investigations $25,298 2% 0.2 2%

Legislation and Regulations Review $25,298 2% 0.2 2%

Outreach $189,737 15% 0.7 15%

Total $1,264,912 100% 4.80 100%

Audits, Inspections, and Review Products—The OIG issues approximately 5-10 reports per 

year (including the annual FCA financial audit and FISMA review). This includes 

recommendations to Agency officials regarding improving the efficiency of Agency programs and 

mission achievement. It also includes four survey reports regarding System institutions’ ratings 

and comments about the Agency’s examination function. 

Budget for FY 2014—$1,024,579.................................................................................3.7 FTE

Investigative Function—Allegations received by the OIG are reviewed by testing information 

provided to determine whether an investigation should be opened. Investigations are conducted 

when appropriate. Maintaining the OIG HOTLINE and directing FCS borrower complaint or 

inquiry issues to Agency components are additional functions of the investigative service.

Budget for FY 2014—$25,298..................................................................................... 0.2 FTE

Review and Comment on Proposed and Existing Legislation and Regulations—The OIG 

reviews and comments on proposed and existing legislation and regulations affecting the Agency 

and the IG community. Additionally, the OIG reviews, comments, and responds to 

Congressional and executive requests and inquiries. 

Budget for FY 2014—$25,298..................................................................................... 0.2 FTE

Outreach Program—The OIG educates FCA employees about OIG’s role within the Agency. 

The OIG lends leadership to organizations directly contributing to the IG community. Through 

involvement in special projects and workgroups, the OIG makes contributions for improving the 

Agency and the OIG community. This includes but is not limited to: the Semiannual Report to 

the Congress, participation in external activities such as membership on CIGIE and the CCIG, 

and instructing at the Federal Law Enforcement Training Center (FLETC) and various public and 

Government forums. We also participate in Agency efforts, such as the Employee’s Council, 

Administrative Workgroup, and Continuity of Operations Plan.

Budget for FY 2014—$189,737....................................................................................0.7 FTE
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FCA OIG Strategic and Operating Performance Plan FY 2014-2015 25

APPENDIX B

Farm Credit Administration

Office of Inspector General

Fiscal Year s 2 0 1 4 - 2 0 1 5

FY 2015 PROPOSED PRODUCTS AND SERVICES BUDGET

This represents the allocation of budget dollars and FTEs to OIG’s products and services.

Management, administrative support, and leave are disbursed across the four products and 

services areas.

Products/Services Budget % Budget FTE % FTE

Audits, Inspections, and Review Products $1,029,945 81% 3.7 81%

Investigations $25,431 2% 0.2 2%

Legislation and Regulations Review $25,431 2% 0.2 2%

Outreach $190,731 15% 0.7 15%

Total $1,271,538 100% 4.80 100%

Audits, Inspections, and Review Products—The OIG issues approximately 5-10 reports per 

year (including the annual FCA financial audit and FISMA review). This includes 

recommendations to Agency officials regarding improving the efficiency of Agency programs and 

mission achievement. It also includes four survey reports regarding System institutions’ ratings 

and comments about the Agency’s examination function. 

Budget for FY 2015—$1,029,945.................................................................................3.7 FTE

Investigative Function— Allegations received by the OIG are reviewed by testing information 

provided to determine whether an investigation should be opened. Investigations are conducted 

when appropriate. Maintaining the OIG HOTLINE and directing FCS borrower complaint or 

inquiry issues to Agency components are additional functions of the investigative service.

Budget for FY 2015—$25,431..................................................................................... 0.2 FTE

Review and Comment on Proposed and Existing Legislations and Regulations—The OIG 

reviews and comments on proposed and existing legislation and regulations affecting the 

Agency and the IG community. Additionally, the OIG reviews, comments and responds to 

Congressional and executive requests and inquiries. 

Budget for FY 2015—$25,431..................................................................................... 0.2 FTE

Outreach Program—The OIG educates FCA employees about OIG’s role within the Agency. 

The OIG lends leadership to organizations directly contributing to the IG community. Through 

involvement in special projects and workgroups, the OIG makes contributions for improving the 

Agency and the OIG community. This includes but is not limited to: the Semiannual Report to 

the Congress, participation in external activities such as membership on CIGIE and the CCIG, 

and instructing at FLETC and various public and Government forums. We also participate in 

Agency efforts, such as the Employee’s Council, Administrative Workgroup, and Continuity of 

Operations Plan.

Budget for FY 2015—$190,731....................................................................................0.7 FTE