Office of 

Inspector General

Farm Credit Administration

Strategic and Operating 

Performance Plan 

FISCAL YEARS 2016-2017
Farm Credit Administration Office of Inspector General 

 1501 Farm Credit Drive 

 McLean, Virginia 22102-5090 

   

September 16, 2015 

The Honorable Kenneth A. Spearman, Board Chairman 

The Honorable Dallas P. Tonsager, Board Member 

The Honorable Jeffery S. Hall, Board Member 

Farm Credit Administration 

1501 Farm Credit Drive 

McLean, Virginia 22102-5090 

Dear Board Chairman Spearman and Board Members Tonsager and Hall: 

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

Performance Plan (SOPP) and Budgets for fiscal years 2016 and 2017. 

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 2016 – Revised Budget and Justifications ................................................................ 12 

FY 2017 – Proposed Budget and Justifications ............................................................. 14 

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

Audit Plan ............................................................................................................................ 19 

Appendices 

Appendix A—IRM Plan Summary FY 2016-2020 .......................................................... 23 

Appendix B—FY 2016-2017 Products and Services Budget ......................................... 24 
_______________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 1 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

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 Modernization Act of 2014 

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 Management 

IT Information Technology 

OE Office of Examination 

OIG Office of Inspector General (FCA) 

OMB Office of Management and Budget 

OSMO Office of Secondary Market Oversight 

SOPP Strategic Operating and Performance Plan 

System Farm Credit System
_________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 2

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

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 risk-based performance 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’s Senior Information Technology (IT) Auditor 

conducts the annual evaluation of the Agency’s compliance with the Federal Information Security 

Modernization Act of 2014 (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 publicly available 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. 

Whistleblowers are afforded full rights in accordance with law. 

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

institutions regarding the effectiveness of the Agency’s examination program 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 2016 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 2016 budget submission, the OIG’s budget information 

required to be highlighted is as follows: 

 The aggregate budget request for the OIG is $1,493,393. 

 The amount needed for OIG training is $21,000 (tuition). 

 The amount to support the Council of the Inspectors General on Integrity and Efficiency is 

$4,100. 
_________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 3

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

STRATEGIC AND OPERATING PERFORMANCE PLAN 

MISSION 

The mission of FCA’s OIG is to be an agent of positive change, striving for continual improvement 

in FCA’s management and program operations. 

CORE VALUES 

 Integrity –Straightforward, objective and balanced reporting of condition, cause, criteria 

and effect, 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, shared services through CIGIE when 

appropriate, and contracted 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 risk-based 

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. The FCA Board composition, as well as FCA staff, continue to 

change. This year the Presidential appointment of the Chairman of the FCA Board 

changed, and, within this reporting period, the Chairmanship may possibly change again. 

Projections indicate new staff hires and retirements will continue to be more substantial 

compared to prior years. Without a focus on knowledge transfer, corporate knowledge 

and valued experiences gained from the Agency’s regulatory experience during the 

agriculture crisis of the mid-1980s through the early 1990s, and from the 2008 financial 

crisis, may be lost. The FCS and the credit needs of rural America will continue to evolve 

in complexity as institutions merge and develop credit products and data systems and 

analytics. As the financial and banking industries continue to become more complex and 

data driven, the Agency’s methodology in achieving its mission must also evolve. OIG also 

will continue to evolve and remain vigilant over Agency performance and internal controls. 

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

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

security measures. The OIG will ensure its expertise keeps pace with changes in 

technology, laws regulations, and guidance impacting vital business areas including: fraud, 

financial reporting, internal controls, and information technology. Joint projects, initiated 

through CIGIE’s efforts to increase cross-cutting projects and reports, will mean staff 
_________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 4

participation with the IG community experts. Data analytics and security will continue to 

evolve and be areas of emphasis within the OIG community and host agencies. 

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

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

competencies and external resources to fulfill its mission. Data explosion, access, and 

technology will continue to cause change in processes and our approach to work. 

 Farm Credit Act and the Farm Credit System. 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 support the System’s continued service to rural America. Complexity 

and the risk examining and governing with fewer and larger institutions, enhance the 

challenges to ensure safety and soundness. OIG will continue to contribute by evaluating 

and making recommendations for positive change. 

PRODUCTS AND SERVICES, AND GOALS

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

economy, efficiency, and effectiveness. 

 Deliver quality audit, inspection, and evaluative products and services in 

conformance with applicable professional standards that are useful to the Board, 

management, and the Congress. 

 Provide technical assistance to Agency officials in developing sound and secure 

management information and 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 and report alleged administrative and criminal violations 

relating to FCA programs and personnel. When appropriate, Department of 

Justice officials will be informed, as required by the IG Act. 

 Educate employees on their responsibility to report observed or suspected 

wrongdoing to the OIG. 

 Provide relevant information on results of investigative activities to appropriate 

parties while observing privacy protections to the greatest extent possible. 

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 and the Inspectors 

General community. 

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. 

 Promote the OIG’s role within FCA and the Inspectors General community. 

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

General community, the Agency, and the Federal government. 
__________________________________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIO

OIG GOAL 

AGENCY GOALS 1 AND 2

PERFORMANCE MEASURES OUT

1. Deliver quality audit, inspection, and 

evaluation products and services that are useful to the FCA Board, management, and the Congress. 

2. Provide technical advice and 

assistance to Agency officials in 

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 opeffective. FCA continues to recaudits. Waste in Agency progreduced. Better busininitiated. Agency compliance winternal policies and pThe Agency’s stature maintained at a high lCongress, the Adminemployees, and the pFCA is more effective mission. The OIG is more effeeconomy, effectivenethe Agency. 

The IG engages in discussion with the FCA Board on FCA continues to rec
__________________________________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

AUDITS AND EVALUATIONS OF AGENCY PROGRAMS AND OPERATIO

OIG GOAL 

AGENCY GOALS 1 AND 2

PERFORMANCE MEASURES OUT

developing sound management information and financial reporting systems and in streamlining programs and operations. 

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. 

financial audit. OIG input and advice decisions and actions and valid at their inceIncrease in managemaudit work, or technic

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 change within the Agequality and credibility advice. Peer review reports cinvestigative programaudit standards prescGovernment AccountAudit, inspection, and public upon issuance notification system to list of new publication
__________________________________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

INVESTIGATIONS

OIG GOAL 

 AGENCY GOALS 1 AND 2 

PERFORMANCE MEASURE OUT

1. Effectively investigate and report 

administrative and criminal violations relating to FCA programs and personnel to Agency officials, the Attorney General (when appropriate), and the 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. Whistleblower’s and Hotline complaints receive prompt attention and/or are directed to appropriate jurisdiction. 

Administrative actionsare obtained for emplfound guilty of wrongdManagement actions serve as deterrent to Brief summaries, withinvestigations are pubwebsite. FCA internal policies, are strengthened to pfuture wrongdoing. Public confidence in tprograms and internaheightened. 

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 mothey are initiated in a better information. FCA employees are mor suspected wrongdothe competence, fairnOIG’s investigations. 
__________________________________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

LEGISLATIVE AND REGULATORY REVIEW

OIG GOAL 

AGENCY GOALS 1 AND 2

PERFORMANCE MEASURE OUT

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 contributes process in approving regulations, circulars, positions. OIG actively participaCommittee. Constructive criticism offered in OIG commeand usefulness of docAgency. FCA Board and manaabout the status of neor regulations initiated Legislation and regulaare noted in the OIG’s the Congress. 
__________________________________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

OUTREACH PROGRAM

OIG GOAL 

 AGENCY GOALS 1 AND 2

PERFORMANCE MEASURE OUT

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’ acooperation with OIG through better undersmission through preseEmployee Orientationproducts are improveAgency employees. Tsuccessful resolution recommendations. 

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 telework 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 such as the AssociatiAccountants, Federal Committee, Institute oTraining Institute, and Inspectors General (Cforums are improved and participation. FCA programs and opeffective and efficient
Detailed Budget 

Fiscal Years 2016 and 2017 

OBJECT CLASS SUB CLASS OBJECT DESCRIPTION 

__________________________________________________________________________________________________________________________________FCA OIG Strategic and Operating Performance Plan FY 2016-2017 

1100 Total Personnel Compensation 111001 Permanent Full-Time 

 113009 Other than Permanent Full-Time  115201 Overtime  115301 Performance, Incentives and Other Awards 

Subtotal 

1200 Total Personnel Benefits 121103 TSP Match 

 121107 Disability Insurance Contributions  121110 Wellness, Flex-care/Life Cycle Programs  129999 Benefits Generated from Payroll  121206 Public Transportation Initiatives  121207 Student Loan Repayments  121599 Relocation Payments Under Object Code 1200 

Subtotal 

1300 Benefits Former Personnel 130002 Unemployment Compensation 

Subtotal 

2100 Travel and Transportation of Persons 210112 Local Travel 

 210199 Temporary Duty Travel  210402 Relocation Travel Expenses  210403 Relocation House Hunting 

Subtotal 

2200 Transportation of Things 220101 Freight and Express Mail 

 220102 Freight and Express Mail - Contract Mail Services  220201 Transportation of Household Goods 

Subtotal 

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

 233101 Utilities - Other than Telephone and Comm. Services  233201 ADP Equipment and Software Rental  233301 Telephone and Communication Services  233304 Wireless Communication Services  233401 Non-ADP Equipment Rental 
Detailed Budget 

Fiscal Years 2016 and 2017 

OBJECT CLASS SUB CLASS OBJECT DESCRIPTION 

__________________________________________________________________________________________________________________________________FCA OIG Strategic and Operating Performance Plan FY 2016-2017 

 Rent, Communications, Utilities and Misc. Charges 233501 Postage – USPS  cont’d 233504 Messenger and Courier Services 

Subtotal 

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

 240201 Commercial Printers/Photographers  240301 Publications of Notices/Classified Advertising 

Subtotal 

2500 Other Contractual Services 251001 Consulting Services 

 252004 Miscellaneous Services  252007 Training - Commercial  253001 Services of Other Government Agencies  253005 Training - Government  254001 Renovating Office Space  257101 Operation/Maintenance - Non ADP Equipment  257102 Operation/Maintenance - ADP Equipment/Software  257202 Storage of Household Goods 

Subtotal 

2600 Supplies and Materials 260101 Supplies 

 260102 Subscriptions, Publications and Training Materials  260201 ADP Supplies 

 260301 Fuel 

Subtotal 

3100 Equipment 310902 Non-IT Equipment, Furniture, Fixtures 

 310202 Software  310302 IT Equipment 

Subtotal 

4200 Insurance Claims and Indemnities 420001 Insurance Claims and Indemnities 

Subtotal 

TOTAL 
________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 12 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

FY 2016 REVISED BUDGET AND JUSTIFICATIONS 

TOTAL OFFICE BUDGET .......................................................................................... $1,493,393 

Total approved IRM Plan amount included in Office Budget ......................................... $2,014 

1100 Personnel Compensation ................................................................................ $1,036,470 

Amount required to fund salaries ($1,032,470) of OIG staff (6 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 ............................................................................................. $312,301 

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 ................................................................ $12,870 

OIG staff will use these funds for travel ($7,370) 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 .......................................... $1,040 

233301 Approved IRM Plan .......................................................................................... $1,040 

233304 Approved IRM Plan ................................................................................................. $0 

These funds will cover telecommuters’ access expense ($720), 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 ........................................................................................ $400 

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

items. 
________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 13 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017

FY 2016 REVISED BUDGET AND JUSTIFICATIONS 

2500 Other Contractual Services ................................................................................ $127,643 

Tuition funds ($12,000) from non-government sources are for staff training. Government 

tuition funds ($9,000) 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 

($2,543) 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 ($54,695) and possible general contracting needs ($45,305). 

Lastly, $4,100 is budgeted for the support of CIGIE. 

2600 Supplies and Materials ........................................................................................... $1,840 

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). Testing certification material ($995) and general office supply funds ($500) 

are also included. 

3100 Equipment .................................................................................................................. $629 

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

310302 Approved IRM Plan ............................................................................................. $129 

Purchase software as necessary to support OIG applications ($500), and one replacement 

desktop printer or office fax machine, if needed ($129). 

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

 
________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 14 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

FY 2017 PROPOSED BUDGET AND JUSTIFICATIONS 

TOTAL OFFICE BUDGET .......................................................................................... $1,504,411 

Total approved IRM Plan amount included in Office Budget ......................................... $2,194 

1100 Personnel Compensation ................................................................................ $1,042,182 

Amount required to fund salaries ($1,038,182) of OIG staff (6 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 ............................................................................................. $317,796 

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 ................................................................ $13,970 

OIG staff will use these funds for travel ($8,470) 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 .......................................... $1,040 

233301 Approved IRM Plan .......................................................................................... $1,040 

233304 Approved IRM Plan ................................................................................................. $0 

These funds will cover telecommuters’ access expense ($720), 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 2016-2017 15 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017

FY 2017 PROPOSED BUDGET AND JUSTIFICATIONS

2400 Printing, Publications and Advertisement ............................................................... $400 

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

items.

2500 Other Contractual Services ................................................................................ $127,169 

Tuition funds ($14,000) from non-government sources are for staff training. Government 

tuition funds ($6,450) 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 ($2,619) 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 ($56,260) and possible general contracting needs ($43,740). 

Lastly, $4,100 is budgeted for the support of CIGIE. 

2600 Supplies and Materials ........................................................................................... $1,025 

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

260201 Approved IRM Plan ............................................................................................. $305 

To purchase on-going subscriptions in the IRM Plan ($220), one laptop carrying case ($125), 

and one laptop battery ($180). General office supply funds ($500) are also included. 

3100 Equipment .................................................................................................................. $629 

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

310302 Approved IRM Plan ............................................................................................. $129 

Purchase software as necessary to support OIG applications ($500), and one replacement 

desktop printer or office fax machine, if needed ($129). 

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

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 16

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017

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. 

Counsel to the Inspector General and Director of Investigations provides independent legal 

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

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

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

function. 

The two Senior Auditor positions are devoted primarily to performance audits, inspections, and 

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

Also, these positions oversee the contractor performing the annual financial, internal control, 

and compliance audit of the Agency on behalf of the OIG. 

A Senior Information Technology Auditor 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 evaluation. 

The Management/Program Analyst is responsible for performing audits and inspections in 

addition to administrative duties, such as assisting the IG in budgeting, information resources 

planning, procurement, and training. 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. 

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

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 17

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 Advisories and Observations. 

The auditors are devoted full time to audits and inspections. The Management/Program Analyst 

and the Counsel to the IG 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. 

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 
________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 18

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 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 6 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. 

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. 

When filling future OIG vacancies, we will continue to make a concerted effort to attract a 

diverse pool of qualified candidates. We share the Agency’s 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 non-program activities of the Agency. 

Strategies 

 Staff will identify and participate in training and professional development activities to 

retain and enhance skills. 

 Staff meetings will occur regularly to promote collaboration among OIG staff. 

 Employment objectives will be considered in filling all OIG vacancies to achieve 

appropriate diversity and inclusion. 
________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 19

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017

 AUDIT PLAN 

AUDITS, INSPECTIONS, AND EVALUATIONS – FISCAL YEAR 2016 AND 2017 

This audit plan identifies potential audit, inspection, and evaluation areas. This plan is based on 

a risk-based approach. The FCA Board is afforded 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 audit 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, 2016 and 2017 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 Modernization Act of 2014 (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 2016 and 2017, the OIG Senior IT Auditor will 

conduct the FISMA evaluation at FCA. 

FY 2016

Procurement/Contracting 

In order to fulfill mission requirements, FCA needs to procure and/or contract for certain goods 

and services. However, FCA must ensure its procurement and contracting activities are 

performed by qualified personnel and through appropriate methods and procedures that result 

in efficient and effective use of Agency resources. The objective of the audit will be to determine 

whether FCA is utilizing an effective and efficient procurement and contracting process. 

FCA’s Implementation and Management of the Risk Project 

To support its mission, the Agency procured software to conduct risk, statistical and data 

analysis of the FCS and enable users to generate specific reports and dashboards. By making 

data quickly available, managers and staff can better manage FCS oversight. The cost for the 

tools selected by FCA was estimated to be approximately $300,000, as well as recurring 

maintenance costs. The objective of this audit will be to determine whether the Risk Project 

was planned and is being managed efficiently and effectively. 
________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 20

Controls over Inappropriate Personal Use of the Internet 

There has been increasing concern regarding Federal employees’ use of government 

equipment and official time to view inappropriate internet sites. Viewing and downloading from 

inappropriate web sites with an Agency computer could result in a significant misuse of official 

Agency resources, loss of productivity, and impact on the work environment. In addition, there 

is a security risk for the Agency due to malware commonly found on such websites. We will 

assess FCA’s controls to prevent and detect use of Agency computers to view and download 

inappropriate material from the internet. 

Review of FCA’s Policies and Procedures 

FCA maintains a library of agency policies and procedures to ensure processes are 

documented and communicated. The objective of the review will be to determine the 

effectiveness and efficiency of FCA’s process in developing and updating agency policies and 

procedures. 

OE’s Promotion and Selection Process 

The OE Career Path Program (CPP) provides a framework for the development of examiners to 

ensure the necessary depth and breadth of skills to fulfill its mission. After building foundational 

competencies and being commissioned, examiners may pursue a specialist path (credit, 

finance, or operations) or remain in the generalist path. Progression within the program is 

based on an examiner’s ability to demonstrate applicable competencies and competitive 

selection. The objective of this audit will be to determine whether OE is effectively managing 

promotion and selection processes. 

FCA’s Performance of IT Examinations at FCS Institutions 

FCA uses a risk-based approach to examine the use of information technology at FCS 

institutions. The objective of this audit is to determine the adequacy of the Agency’s 

examination process as it relates to the oversight of information technology at FCS institutions. 

Inspections of FCA’s Field Offices 

In addition to performing audits, investigations, and general program inspections, the OIG may 

conduct inspections of FCA field offices. These inspections are designed to ensure that field 

office operations are conforming to FCA and government regulations and to advise 

management on weaknesses or noncompliance. In addition, these “spot checks” result in a 

written report with findings and agreed-upon actions or recommendations, as needed. The 

objective of these inspections will be to determine whether internal controls are operating 

effectively in FCA field office operations. 

Review of FCA’s Controls over the Electronic Official Personnel Folder 

The electronic Official Personnel Folder (eOPF) offers a standard approach for employee 

personnel records that protects against potential loss or accidental damage from flood, fire, or 

other natural disasters and provides continuity of operations. Since July 2009, FCA has utilized 

the eOPF to store employees’ personnel records. The objective of this audit is to review the 

effectiveness of controls related to the eOPF. 

FY 2017

Criminal Referral Process and Follow-Up 

By Federal regulation (12 C.F.R. § 612.2301), Farm Credit System institutions are required to 

provide notification and information to the FCA and appropriate law enforcement authorities or 
________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 21

the U.S. Department of Justice where a criminal violation is suspected involving an institution’s 

assets, operations, or affairs. The objective of this review would be to evaluate the 

effectiveness of this process. 

EDGe System 

One of the actions in FCA’s strategic plan is to invest in technology and modern examination 

and analysis tools. As part of these efforts, FCA initiated a multi-year project, broken into four 

phases, to develop a fully redesigned examination program and documentation system, known 

as EDGe. FCA has identified the EDGe system as a high priority for the Agency. The objective 

of this audit is to determine if FCA has effectively monitored and implemented the EDGe system 

project. 

FCA Peer Review of Federal Election Commission OIG Audit Operations 

Government Auditing Standards require audit organizations that perform audits or attestation 

engagements to undergo an external peer review every three years. The OIG staff will conduct 

the Federal Election Commissions’ external peer review. We will review the system of quality 

control for the audit organization. 

Review of FCA’s Awards Programs 

FCA acknowledges and recognizes employee contributions though an awards program that 

includes various types of awards such as achievement or special act awards, on-the-spot cash 

awards, and peer to peer awards. The inspection will determine if FCA is following the policies 

and procedures and has adequately implemented controls over the awards program. 

401k Plan 

FCA is implementing a supplemental 401k retirement savings plan in 2015. The agency will 

automatically contribute one percent of employees’ salary to the 401(k) plan, with matching 

employee contributions up to two percent more. The plan will apply equally to all employees, 

regardless of which retirement system an employee is under (e.g., FERS, CSRS). The 

objective of this audit is to determine whether the new plan was implemented and is being 

managed effectively and efficiently. 

Office of Secondary Market Oversight (OSMO) 

Section 8.11 of the Farm Credit Act established the authority of OSMO to examine the Federal 

Agricultural Mortgage Corporation and for general supervision of the safe and sound 

performance of the Corporation. The audit will determine whether OSMO effectively 

administers the examination and supervisory functions over the Corporation. 

Arm’s Length Transactions 

There is a heightened emphasis for FCA to continue adherence to its legislative mandate to be 

an arm’s length regulator. An evaluation will examine the success of FCA in preventing the 

perception of being considered a captive regulator and to examine adherence to FCA’s policy. 

OE’s 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. 
________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 22

Beyond FY 2017

 Delegations 

 Corporate Restructuring Procedures/Mergers 

 Overlap in Functions 

 Conflict of Interest 

 Settlements 

 Approval Process of FCS Bond Issuance 

 Examination Quality Assurance Process 

 Records Management 

 Analysis of Changes in FCS Loan Underwriting Standards 

 eArchives 

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

 FCA Strategic Plan 

 FCS Loan Data System 

 General Control Reviews: Access Controls 

 General Control Reviews: Segregation of Duties 

 General Control Reviews: Software Development and Change Control 

 General Control Reviews: System Software 

 Human Resources 

 Information Technology Investments Performance Measures 

 Outsourcing 

 Review of the Consolidated Reporting System 

 Safeguarding Personally Identifiable Information, including Social Security Numbers 

 Specialization and Certification 

 Travel Expenses 
______________________________________________________________________________________________________________________

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

IRM PLAN SUMMARY FISCAL YEARS 2016-2020 

IRM Budget Category Object Code FY 2016 Costs FY 2017 Costs FY 2018 Costs FY 2019 Costs FY 2

Cos

Telecommunications Rentals 233301 1,040 1,040 1,040 1,040 1,04Wireless Communications 233304 0 0 0 0 0 Subscriptions and Publications 260102 220 220 220 220 22ADP Supplies 260201 125 305 125 305 12Software 310202 500 500 500 500 50IT Equipment 310302 129 129 129 129 12

 Total 2,014 2,194 2,014 2,194 2,0
_________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 24 

APPENDIX B

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

FY 2016 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 $1,015,507 68% 4.1 68% 

Investigations $179,207 12% 0.7 12% 

Legislation and Regulations Review $74,670 5% 0.3 5% 

Outreach $224,009 15% .9 15% 

Total $1,493,393 100% 6 100%

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 2016—$1,015,507 ................................................................................... 4.1 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 2016—$179,207 ...................................................................................... 0.7 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 2016—$74,670 ........................................................................................ 0.3 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 CIGIE Training Institute and various public and Government forums. 

Budget for FY 2016—$224,009 ...................................................................................... 0.9 FTE 
_________________________________________________________________________________________________________ 

FCA OIG Strategic and Operating Performance Plan FY 2016-2017 25 

APPENDIX B

Farm Credit Administration 

Office of Inspector General 

Fiscal Years 2016-2017 

FY 2017 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 $1,022,999 68% 4.1 68% 

Investigations $180,529 12% 0.7 12% 

Legislation and Regulations Review $75,221 5% 0.3 5% 

Outreach $225,662 15% 0.9 15% 

Total $1,504,411 100% 6 100%

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 2017—$1,022,999 ................................................................................... 4.1 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 2017—$180,529 ...................................................................................... 0.7 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 2017—$75,221 ........................................................................................ 0.3 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 CIGIE training institute and various public and Government forums. 

Budget for FY 2017—$225,662 ...................................................................................... 0.9 FTE