FY 2013 Annual Plan - US Department of Agriculture

Message from the Inspector GeneralI am pleased to present the USDA OIG Annual Plan for fiscal year (FY) 2013. This document describes how OIG will achieveits mission of promoting economy, efficiency, effectiveness, and integrity in the delivery of USDA programs. In setting our goalsand objectives, we aligned our annual plan with both the OIG Strategic Plan for FY 2010-2015 and the USDA Strategic Plan for FY2010-2015. This plan reflects the priority work that OIG believes is necessary to provide effective oversight of the broad spectrumof USDA programs and activities. As the Nation moves forward to address its fiscal situation, OIG anticipates that there will befewer resources available to carry out our mission in FY 2013. Accordingly, adjustments to this plan may be necessary as the yearunfolds to ensure that we direct our resources to areas of highest risk and vulnerability.We are completing our audits of the USDA programs and activities funded under the American Recovery and Reinvestment Act of2009 (Recovery Act). For FY 2013, we estimate that we will use approximately 4 percent of our audit resources to complete the 16assignments by December 31, 2012. For Investigations, we estimate that 3 percent of our investigative resources will be devoted toRecovery Act oversight.As mandated by Executive Order (E.O.) 13520 and the Improper Payments Elimination and Recovery Act (IPERA) of 2010, wewill determine USDA’s compliance with IPERA and review agencies’ methodologies and plans to reduce improper payments. Inaddition, as required by the Claims Resolution Act of 2010, we will review claims to determine whether USDA established andfollowed proper procedures for distributing settlement funds to eligible claimants. Also, as mandated by E.O. 13526, we willreview the Department’s classification and declassification process of national security information to assess if applicable policies,procedures, rules, and regulations have been adopted and effectively administered.As mandated by the Food, Conservation, and Energy Act of 2008 (Farm Bill), we continue to monitor how the Food Safety andInspection Service (FSIS) implements provisions related to State meat inspection programs. Once relevant regulations are in place,we will initiate an audit to determine if they are being followed.Our work this year on disaster relief will include a review of programs intended to rehabilitate land damaged by drought, floods,tornadoes, wildfires, and other natural disasters: the Farm Service Agency’s (FSA) Emergency Conservation Program (ECP) andthe NRCS Emergency Watershed Program (EWP). If severe drought and other natural disasters continue to plague the country,additional funding for USDA programs offering disaster relief may be authorized. As circumstances warrant, we may undertakeadditional work to ensure that these funds are used properly.Based on OIG’s continuing commitment to our strategic goals, adapted to respond to key developments and carry out new andongoing responsibilities, we present this Annual Plan for FY 2013. We look forward to continuing to work productively withCongress and the Secretary to promote the effective delivery of USDA programs.Phyllis K. FongInspector General

GoalsnnCoordinate with the Federal Bureau of Investigation’s JointTerrorism Task Forces to support ongoing investigations toidentify and combat domestic and international terrorism.Investigate acts of violence and threats against USDAemployees.Specific Recovery Act work we are conducting includes thefollowing:nnInvestigate whistleblower complaints that involve RecoveryAct funds or alleged health, safety, or security threats.Complete audit work on whether sponsors of projects torehabilitate flood control dams are following Recovery Actrequirements for issuing contracts, monitoring projects, andreporting their use of funds to the Recovery Board.Goal 2 – Reduce program vulnerabilities andstrengthen program integrity in the delivery ofbenefits to individuals.We expect to use approximately 33.7 percent of our audit and83 percent of our investigative resources to accomplish thisgoal. Our investigative focus includes threats to the integrityand effectiveness of USDA’s benefits programs. Our audit focusincludes assessing internal control systems and identifying riskindicators that should increase both OIG’s and USDA’s abilityto detect and prevent program abuse and criminal activity. ForFY 2013, our priorities include the following:nnnnDetermine whether the Farm Service Agency (FSA) canmaintain an effective compliance and internal reviewfunction to identify, report, and reduce improper paymentsin agricultural programs given the potential impacts of staff/budget cuts and the agency reorganization announced inJanuary 2012.Review and assess the adequacy of controls over the UplandCotton Economic Adjustment Assistance Program paymentsto U.S. textile manufacturers.Determine the effectiveness of FSA’s and the NaturalResources Conservation Service’s (NRCS) administrationof the Emergency Conservation Program (ECP) andEmergency Watershed Program (EWP), which are intendedto rehabilitate land damaged by floods, tornadoes, andwildfires.Review NRCS’ administration of the EnvironmentalQuality Incentives Program (EQIP) to identify potentialareas of highest risk. These areas could include eligibility,contract management, compliance, and propriety ofpayments.nnnnnnnnnAssess the Food and Nutrition Service’s (FNS) controlsover the authorization process, which include the initialauthorization, periodic reauthorization, and disqualificationof retailers participating in the Supplemental NutritionAssistance Program (SNAP). 2 We will also evaluate FNS’recent actions to strengthen processes to prevent theauthorization of previously disqualified retailers.Evaluate FNS’ methods to lower error rates in the NationalSchool Lunch Program (NSLP) and School BreakfastProgram. Determine if FNS, State agencies, and schoolfood authorities have adequate controls to ensure childrenapproved for free and reduced price meals meet eligibilityrequirements and meal claims are supported and accuratelyreimbursed.Determine if FNS has adequate controls in SNAP to ensureState error rates are accurately reported, State agency qualitycontrol efforts are validated, and State agency administrativecosts are appropriate.Determine how the program costs are calculated for theSpecial Supplemental Nutrition Program for Women,Infants, and Children (WIC), including average foodcosts and costs per participant nationwide. Evaluate howprogram costs can vary among States.Investigate alleged criminal activity in food and nutritionprograms, including SNAP and its Electronic BenefitsTransfer (EBT) delivery system, WIC, and NSLP. Activitiesare expected to include an initiative with FNS to pursueprosecution of both retailers and SNAP recipients whomisuse benefits, an examination of potential fraud involvingmultiple replacement SNAP EBT cards, and work withStates transitioning to the electronic disbursal of WICbenefits.As mandated by E.O. 13520 and IPERA, evaluateUSDA’s compliance with IPERA, and review agencies’methodologies and plans to reduce improper payments.Assess risks in high-priority programs, determine the extentof oversight warranted, and provide recommendations,where appropriate.Evaluate the Agricultural Marketing Service’s (AMS)oversight of the equivalency agreement between the UnitedStates and the European Union (EU) to ensure that EUproducts marketed as organic in the United States meet thestandards established in the agreement.Investigate allegations of criminal activity in farm programs,including the crop insurance and farm loan programs.Assess Rural Business-Cooperative Service’s (RBS)management controls over approval and servicing of the2SNAP was formerly known as the Food Stamp Program.2 USDA OIG Fiscal Year 2013 Annual Plan

GoalsnnnnnnDetermine whether FS has adequate controls in place toensure that its contracts are awarded competitively and thatthe agency is obtaining the best value for the Government incompliance with the Federal Acquisition Regulation (FAR).Review FS’ workforce succession plans as they relate to theagency’s contracting practices.Determine if USDA’s methods of compensating for alimited workforce maximize staff resources and do notadversely affect program delivery at beef plants. Auditobjectives include evaluating if increased overtime hoursare justified, if AMS and FSIS properly record and chargeindustry for these additional costs, and if both agenciesfully explored opportunities to cross-utilize their staffs.Determine if AMS employs grading and imaging software tomaximize staffing resources.Audit USDA’s use of authority granted under the EconomyAct and 7 U.S.C. §2263 (Greenbook charges), to transferfunds within USDA for centrally provided programs.Evaluate, at the request of Members of Congress, whetherthese funding tools are used appropriately and determinewhether USDA had adequate controls in place to verify thenecessity and benefits for the various transfers.Evaluate selected agencies’ implementation of requirementsunder Presidential Memorandum, “Enhancing PaymentAccuracy Through a “Do Not Pay List” (6-18-2010). 4Evaluate the effectiveness of the Office of the ChiefFinancial Officer’s involvement in the agencies’ processes.Review grants awarded in FYs 2010 and 2011 through theStrikeForce Initiative to ensure that funds were obtained andissued in accordance with Federal regulations. We will alsoexamine the Office of Advocacy and Outreach’s policies andprocedures for the use of these funds. 5Identify the different USDA databases containing contractorinformation. Determine if the Department has a completedatabase and if the data are reliable. Identify debarredor suspended contractors that are not exempt fromUSDA programs and analyze the data according to FARrequirements to identify trends that may lead to fraudulentbehavior.nnnReview USDA’s telecommunication operations and relatedcyber security activities to determine if the service levelestablished in the network contract is adequate to supportthe Department’s large network infrastructure and if thenetwork is managed in a secure manner in accordance withthe National Institute of Science and Technology standards.Perform a security assessment of the National AgriculturalStatistics Service (NASS) lock-up process and procedures.Verify that processes are in place to assure that NASS reportsare properly secured and are released at the appropriate time.Investigate allegations of employee corruption and fraud.Specific Recovery Act work we are conducting includes thefollowing:nnnnnnInvestigate whistleblower complaints related to Recovery ActfundingDetermine if Departmental Management and theAgricultural Research Service properly closed out RecoveryAct-funded contracts.Evaluate the effectiveness of the Rural Business-CooperativeService’s Rural Business Enterprise Grants funds expendedthrough the Recovery Act. We will also determine ifestablished controls were in place to ensure grant fundswere used for authorized purposes and that grant recipientsprovided the required matching funds.Evaluate the Rural Utilities Service’s (RUS) currentBroadband operations and assess the effectiveness of RUS’corrective actions taken to address audit recommendationsidentified in our 2005 and 2009 reports.Review SNAP Recovery-Act specific performance measuresto determine whether they effectively and accuratelymeasure how FNS used those funds to achieve RecoveryAct goals.Complete data quality reviews of Federalreporting.gov andthe Recovery Act jobs reported for USDA programs.4The Presidential Memorandum requires that Agencies, at a minimum, check five specific databases (where applicable and permitted by law) to verify eligibilitybefore making payments or awards.5In 2011, USDA launched the StrikeForce Initiative, a cross-agency effort to accelerate assistance to historically underserved groups. Through this initiative,USDA is working to ensure all producers have access to programs that can help them thrive, including proven conservation programs.4 USDA OIG Fiscal Year 2013 Annual Plan

Goal 4 – Increase the efficiency and effectivenesswith which USDA manages and exercises stewardshipover natural resources.We expect to use approximately 5.0 percent of our auditresources and 1 percent of our investigative resources for Goal4. Our audit and investigative focus is on USDA’s managementand stewardship of natural resources, such as soil, water, andrecreation sites. For FY 2013, our priorities include:nnnnEvaluate NRCS controls over the Farm and Ranch LandsProtection Program to ensure that conservation easementsare properly appraised, and that the land is used foragriculture.Investigate allegations of significant criminal activities inprograms related to natural resource management andstewardship.Review NRCS controls over the implementation andexecution of the Conservation Stewardship Program.Determine if NRCS has adequate controls to ensure theaccuracy of eligibility, payments, and producer compliance,including whether payments to historically underservedparticipants are being calculated based on correct cost lists.Determine if FS firefighting cost-share agreementswith non-Federal entities were properly established andimplemented to distribute fire suppression costs equitably.Test whether reimbursements were properly determined andconsistent with the agreed-upon cost-share agreements.Specific Recovery Act work we are conducting includes thefollowing:nDetermine whether FS Recovery Act-funded activities metthe goals and objectives of the Recovery Act. Specifically, wewill (1) determine whether FS implemented performancemeasures that met both OMB guidance and theGovernment Performance and Results Act, and (2) reviewcontrols over these performance measures to determinewhether related accomplishments were correctly reported.Goal 5 – Strive for a highly qualified, diverseworkforce with the tools and training necessaryto continuously enhance OIG’s ability to fulfill itsmission and communicate its accomplishments.For FY 2013, we will continue to use 17 of the 18 previousperformance measures. We are also adding three new measures,which will raise the total to 20 for this goal. Our managementfocus is on ensuring the readiness of the OIG workforce,timely reporting of information to stakeholders, and addressingemployees’ needs. Our FY 2013 priorities include thefollowing:nnnnnnnnMeet statutory deadlines for Freedom of Information Act(FOIA) appeals.Issue candidate certificates within 5 days of announcementclosing date.Improve initial response and completion time for IT helpdesk requests.Deliver timely and informative semiannual reports toCongress, annual plans, and other OIG publications tostakeholders.Issue legal opinions within 30 calendar days of receipt ofrequest, or other agreed-to dates.Issue OIG’s formal IT security briefing to the OIG ChiefInformation Officer at least three times per quarter.Improve internal and external response times to securityincidents.Develop a Diversity Strategic Plan to strengthen OIG’sclimate of diversity and inclusion and to further its proactiveefforts at preventing workplace discrimination.USDA OIG Fiscal Year 2013 Annual Plan 5

Performance Summary and ResultsFY 2012 Performance Summary and ResultsOur Strategic Plan identifies the results of our work using alife-cycle approach to our outputs that tracks individual actionsat critical milestones. We began measuring these results inFY 2004. Since then, we have steadily increased the numberof performance measures we track. In FY 2012, OIG met29 of the 30 performance measures in place. The followingtables illustrate our FY 2012 results in comparison with ourperformance targets. FY 2013 performance target can be foundon the back page.IG Strategic and Performance Goals and FY 2012 ResultsStrategic Goal(1) Safety and Security(2) Integrity of BenefitsPerformance GoalsStrengthen USDA’s ability to implement safety and security measures to protect thepublic health as well as agricultural and Departmental resources.Reduce program vulnerabilities and strengthen program integrity in the delivery ofbenefits to individuals.(3) Management Improvement Initiatives Support USDA in implementing its management improvement initiatives.(4) Natural Resources(5) Qualified Diverse WorkforceIncrease the efficiency and effectiveness with which USDA manages and exercisesstewardship over natural resources.Strive for a highly qualified, diverse workforce with the tools and training necessaryto continuously enhance OIG’s ability to fulfill its mission and communicate itsaccomplishments.Performance Measures FY 12 Target FY 12 Actual(1) Percentage of OIG direct resources dedicated to critical-risk or high-impactactivities.(2) Percentage of audit recommendations where management decisions are achievedwithin 1 year.(3) Percentage of audits initiated where the findings and recommendations are presentedto the auditee within established and agreed-to timeframes.(4) Percentage of closed investigations that resulted in a referral for action to theDepartment of Justice, State or local law enforcement officials, or a relevantadministrative authority.(5) Percentage of closed investigations that resulted in an indictment, conviction, civilsuit or settlement, judgment, administrative action, or monetary result.92%97.7%99.6%Audit94.3% Inv.90% 96.8%90% 91.9%70% 88.8%65% 71.2%(6) On a biannual basis, positive employee satisfaction rate reported in staff surveys. 70% N/A(7) *OIG Hotline will process, research, and refer USDA health and safety complaintswithin 24 hours of receipt by an analyst.80% 91.8%Note: N/A – Performance Measure did not have any activity in FY 2012.6 USDA OIG Fiscal Year 2013 Annual Plan

Performance Summary and ResultsPerformance Measures (Continued) FY 12 Target FY 12 Actual(8) *Issue new or update 10 Inspector General directives. 80% 120%(9) *Time from receipt of an SF-52 for a standard recruitment action until positionsare posted and opened through the automated system averages 10 days.(10) Time to issue candidate certificates after the closing date of an announcementaverages 5 days.(11) Survey results indicate new employees find orientation session useful to them asthey begin their new jobs.(12) All Information Technology Division (ITD) systems including the LAN, WAN,e‐mail, and ARGOS remain operational, excluding planned outages for systemmaintenance and outages caused by outside factors.90% 100%90% 85.7%80% 100%97% 99.9%(13) ITD staff will make an initial response to help desk request within 2 hours or less. 85% 97.8%(14) ITD staff will resolve help desk request within 24 hours. 85% 94.3%(15) Internal and external security incidence response and resolution accomplishedwithin 30 days of incident in accordance with the Agriculture Security OperationsCenter (ASOC).(16) Budget information provided to the Department for the Office of Managementand Budget requirements on time.(17) Accounting information and regular reports submitted to the National FinanceCenter and the Office of the Chief Financial Officer on time.80% 100%95% 96.8%95% 95.1%(18) Micro-purchases awarded within 3 working days of receipt of approved AD‐700. 90% 98.9%(19) All public reports meet management and statutory timeframes and contentrequirements.95% 100%(20) Positive evaluation scores on OIG internal training course evaluations. 80% 78.5%(21) *The Equal Employment Opportunity (EEO) Counselor’s internal and externalreports will be completed within 15 calendar days after completing the counselingperiod.85% 100%(22) Inspection reports issued in final with management response within 60 days. 85% 100%(23) Inspection report recommendations accepted annually. 85% 98.2%(24) Total requests from Congress acknowledged either orally or in writing within5 working days of receipt.(25) Counsel to the Inspector General issues IG subpoenas within 5 working days uponreceipt of complete information for review.90% 96.7%90% 100%Note: *New Performance Measure in FY 12.USDA OIG Fiscal Year 2013 Annual Plan 7

Performance Summary and ResultsPerformance Measures for Recovery Act Work FY 12 Target FY 12 Actual(1) Notify USDA agency managers of significant audit findings related to Recovery Actprograms, along with recommendations for corrective action, within 30 days afteridentification.(2) Respond to Recovery Accountability and Transparency Board-sponsored requests andprojects within established schedules or agreed-to timeframes.(3) An investigative determination to accept or decline an allegation of whistleblowerretaliation is made within 180 days of receipt.(4) Whistleblower retaliation allegations are investigated and reported within 180 daysof receipt.(5) Timely and accurate monthly Recovery Act funds reports submitted to the RecoveryAccountability and Transparency Board.85% 100%85% 94.4%100% 100%75% N/A95% 100%8 USDA OIG Fiscal Year 2013 Annual Plan

ConclusionConclusionThroughout FY 2013, we will measure our progress inachieving the performance objectives of this plan throughperiodic reporting. Adjustments may be made to reflectshifting priorities, increased or reduced resources, or othercircumstances that may arise.In developing this annual plan, we made every effort torealistically assess our planned work’s strategic alignment andimportance, anticipated outcomes, and resource requirements.We believe it represents a balanced and achievable set ofperformance objectives for FY 2013.We will report on our results through our semiannual reports toCongress.USDA OIG Fiscal Year 2013 Annual Plan 9

Appendix AAppendix ARelated Materials and InformationOIG Strategic Plan for FY 2010-2015:http://www.usda.gov/oig/webdocs/OIGStrat2010-2015.pdfUSDA Strategic Plan for FY 2010-2015:http://www.ocfo.usda.gov/usdasp/sp2010/sp2010.pdfUSDA Major Management Challenges (August 2012)http://www.usda.gov/oig/webdocs/MgmtChallenges2012.pdfOIG American Recovery and Reinvestment Act Recovery Effortshttp://www.usda.gov/oig/recovery/index.htm10 USDA OIG Fiscal Year 2013 Annual Plan

Appendix BAppendix BOrganization Chart and Functional ResponsibilitiesSeptember 2012Robert YoungSpecial Assistant to the InspectorGeneral for Recovery Act(202) 720-8001Phyllis FongInspector General(202) 720-8001Christy SlamowitzCounsel to the InspectorGeneral(202) 720-9110Paul FeeneyDeputy Counsel(202)720-6901Antigone PotamianosDeputy Counsel(202) 720-9110Scott WilliamsCompliance & Integrity(301) 504-1111David GrayDeputy Inspector General(202) 720-7431Tram-Tiara NgoDiversity & ConflictResolution(202) 720-6902Gil HardenAIG* for Audit(202) 720-6945Karen EllisAIG for Investigations(202) 720-3965Lane TimmAIG for Management(202) 720-6979Tracy LaPointDAIG** forAudit(202) 690-4483Steven RickrodeDAIG forAudit(202) 720-5907Rod DeSmetDAIG forAudit(202) 720-7431Kathy HorsleyDAIG for Investigations(202) 720-3965(Vacant)DAIG for Management(202) 720-69795 Headquarters Divisions3 Regional Offices16 Field Offices3 HeadquartersDivisions5 Regional Offices42 Sub-offices &Residences5 HeadquartersDivisions6 Regional Offices1 Sub-officeNote 1: *AIG – Assistant Inspector GeneralNote 2: **DAIG – Deputy Assistant Inspector GeneralUSDA OIG Fiscal Year 2013 Annual Plan 11

Appendix BAreas of Responsibility:AuditThe Office of Audit examines the economy and efficiency ofUSDA programs and operations, including program results,compliance with applicable laws and regulations, and fairpresentation of financial reports. Audit also performs dataanalyses to assist audit teams in identifying early indicators ofpotential fraud or the need for additional program controls.While the majority of work is performed by OIG staff, Auditcontracts with certified public accountants for some work andoversees the quality of work done by auditors under contractto other USDA agencies. OIG audits are performed inaccordance with Government Auditing Standards, published bythe U.S. Government Accountability Office, and in accordancewith the professional standards set by the American Institute ofCertified Public Accountants.InvestigationsThe Office of Investigations utilizes specific law enforcementauthorities, tools, and techniques, including asset forfeiture, toconduct investigations and prevent fraud, waste, and abuse inthe programs and operations of USDA. 7 Investigative work isintended to result in appropriate actions to resolve allegationsand to prevent future instances of illegal or fraudulent acts ormisconduct.CounselThe Office of Counsel (OC) provides legal advice andrepresentation on issues arising during the course of audit,investigative, and inspection activities, or administrativeand management issues facing OIG. OC also managesOIG’s congressional and media relations, ethics, Freedom ofInformation Act, and Privacy Act programs. Additionally, OCcoordinates reviews of existing and proposed legislation andregulations in order to make recommendations concerning theimpact of such proposals on economy and efficiency in theadministration of USDA’s programs and operations, as well asfor the prevention and detection of fraud and abuse in suchprograms and operations. 8ManagementThe Office of Management (OM) ensures that OIG staff,funds, technology, equipment, and policies are in placeso that we can function efficiently and effectively. OM’sresponsibilities include asset management, budget formulationand execution, human resources, cross-OIG workplace training,information technology, and policy preparation for OIG. OMalso facilitates OIG’s planning activities and prepares crosscuttingdocuments on OIG accomplishments.Compliance and IntegrityThe Office of Compliance and Integrity conducts systematicand independent reviews and investigations of operationswithin OIG. Reviews are generally focused on managementand internal controls, and investigations are generally inresponse to allegations of OIG employee misconduct ormismanagement.Diversity and Conflict ResolutionThe Office of Diversity and Conflict Resolution advises OIGleadership on applying the principles of civil rights, equalemployment opportunity, dispute resolution, and affirmativeemployment to matters involving our workforce, programactivities, and policy development. As needed, this office alsoguides employees who seek to use the Federal employmentdiscrimination complaint and dispute resolution processes.Special Assistant to the IG for Recovery ActThe Special Assistant to the IG for Recovery Act providesoverall guidance and direction to all Recovery Act audit andinvestigative activities, as well as duties and functions relatingto the Recovery Accountability and Transparency Board.The Special Assistant directs and reviews the development ofRecovery Act-related goals and priorities, operation plans,performance measures, and reports for each OIG component,including audit, investigation, and management functions.7As a component member of the U.S. Department of Justice’s (DOJ) Asset Forfeiture Program, OIG supports DOJ’s National Asset Forfeiture Strategic Plan bymaking tracing and recovery of assets an integral part of every applicable criminal investigation. Asset forfeiture can be a vital tool to deprive criminals of the fruitsand instrumentalities of their crimes, thereby deterring criminal activities.8Such reviews are mandated under the Inspector General Act of 1978 [5 U.S.C. app. 3, § 4(a)(2)].12 USDA OIG Fiscal Year 2013 Annual Plan

Appendix CAppendix CDistribution of Audit Resources by AgencyFY 2013 PLANNEDMISSION AREA AGENCY %NATURAL RESOURCESAND ENVIRONMENT – 14.5%Forest Service (FS) 5.8Natural Resources Conservation Service (NRCS) 8.7Farm Service Agency (FSA) 6.1FARM AND FOREIGNAGRICULTURAL SERVICES – 10.3%Foreign Agricultural Service (FAS) 1.1Risk Management Agency (RMA) 3.0Commodity Credit Corporation (CCC) 0.1Rural Development (RD) 5.6RURAL DEVELOPMENT – 17.4%Rural Utilities Service (RUS) 2.9Rural Housing Service (RHS) 3.9Rural Business-Cooperative Service (RBS) 5.0FOOD, NUTRITION, ANDCONSUMER SERVICES – 16.6%Food and Nutrition Service (FNS) 16.6FOOD SAFETY – 6.1% Food Safety and Inspection Service (FSIS) 6.1USDA OIG Fiscal Year 2013 Annual Plan 13

Appendix CFY 2013 PLANNEDMISSION AREA AGENCY %Agricultural Marketing Service (AMS) 5.4MARKETING AND REGULATORYPROGRAMS – 8.0%Animal and Plant Health Inspection Service (APHIS) 2.6Grain Inspection, Packers and Stockyards Administration(GIPSA)*Agricultural Research Service (ARS) 1.0RESEARCH, EDUCATION,AND ECONOMICS – 1.9%National Institute of Food and Agriculture (NIFA) 0.3National Agricultural Statistics Service (NASS) 0.6Economic Research Service (ERS) *EXECUTIVE SECRETARIATAND OTHER ENTITIES – 10.1%Office of the Secretary (OSEC), Departmental Management(DM), Office of the Chief Financial Officer (OCFO), Officeof the Chief Information Officer (OCIO), Office of theAssistant Secretary for Civil Rights (OASCR)10.1MULTIPLE AGENCY – 15.1% 15.1*No work is currently scheduled for this agency in FY 201314 USDA OIG Fiscal Year 2013 Annual Plan

Appendix DAppendix DDistribution of Investigative Resources by AgencyNATURAL RESOURCESAND ENVIRONMENT – 4.0%FY 2013 ANTICIPATEDMISSION AREA AGENCY %Forest Service (FS) 3.5Natural Resources Conservation Service (NRCS) 0.5FARM AND FOREIGNAGRICULTURAL SERVICES – 18.0%Farm Service Agency (FSA) 12.0Foreign Agricultural Service (FAS) 1.0Risk Management Agency (RMA) 5.0Rural Utilities Service (RUS) 1.0RURAL DEVELOPMENT – 6.0%Rural Housing Service (RHS) 4.0Rural Business-Cooperative Service (RBS) 1.0FOOD, NUTRITION,AND CONSUMER SERVICES – 60.0%Food and Nutrition Service (FNS) 60.0FOOD SAFETY – 5.5% Food Safety and Inspection Service (FSIS) 5.5MARKETING ANDREGULATORY PROGRAMS – 5.5%RESEARCH, EDUCATION,AND ECONOMICS – 0.5%Agricultural Marketing Service (AMS) 1.5Animal and Plant Health Inspection Service(APHIS)Grain Inspection, Packers and StockyardsAdministration (GIPSA)Agricultural Research Service (ARS) 0.4National Institute of Food and Agriculture(NIFA)3.01.00.1OTHER – 0.5%Departmental Management (DM), Office of theChief Financial Officer (OCFO), Office of theChief Information Officer (OCIO), Office of theAssistant Secretary for Civil Rights (OASCR),OIG, other0.5USDA OIG Fiscal Year 2013 Annual Plan 15

Appendix EAppendix EFiscal Year 2013 Audits Planned and in ProcessTable Key:Asterisk (*)Plus Sign (+)Denotes work-in-process, which is carried over from an assignment initiated in the prior fiscal year.Denotes Recovery Act work.AMSAGENCY TITLE GOAL* Beef Research and Promotion Board Activities Improvement InitiativesRetailer Handling of Organic ProductsEvaluation of USDA’s Process Verified ProgramsNational Organic Program Partnership Between the United Statesand the European UnionSafety and SecuritySafety and SecurityIntegrity of Benefits* National Organic Program – Organic Milk Operations Safety and SecurityAPHISWildlife Services Predator Control ActivitiesSafety and Security* Plant Protection and Quarantine Pre clearance Program Safety and SecurityWildlife Services Cooperative AgreementsSafety and Security* APHIS Oversight of Research Facilities Safety and SecurityARS Adequacy of Controls to Prevent the Release of Sensitive Technology Safety and SecurityASCR * In Re Black Farmers Discrimination Litigation Improvement InitiativesCCC*FY 2012 Commodity Credit Corporation (CCC) FinancialStatementsFY 2013 CCC Financial StatementsImprovement InitiativesImprovement InitiativesDMFAS*Eligibility and Compliance Consideration for Section 2501 GrantsAwarded in FYs 2010-2011Controls Over the Grant Management Processes of the Office ofAdvocacy and OutreachIntegrity of BenefitsIntegrity of Benefits* USDA StrikeForce Initiative for FYs 2010 and 2011 Improvement InitiativesControls Over the Market Access ProgramIntegrity of Benefits* Private Voluntary Organization Grant Fund Accountability Improvement Initiatives* + Trade Adjustment Assistance for Farmers Program, Phase II Integrity of Benefits16 USDA OIG Fiscal Year 2013 Annual Plan

Appendix EFNSAGENCY TITLE GOAL* FY 2012 FNS Financial Statements Improvement InitiativesFY 2013 FNS Financial StatementsMaryland SNAP Applicant Eligibility Determination ProcessImprovement InitiativesImprovement Initiatives* + Recovery Act Impacts on SNAP, Phase II Integrity of Benefits* + Review of SNAP Recovery Act Performance Measures Improvement Initiatives*States’ Food Costs for the Special Supplemental Nutrition Programfor Women, Infants, and Children (WIC)National School Lunch Program – Food Service ManagementCompanies and Cost Reimbursable ContractsSelf-Operated Schools’ Purchase Discounts and Rebates for theNational School Lunch Program (NSLP)Integrity of BenefitsIntegrity of BenefitsIntegrity of Benefits* Vendor Management and Participant Eligibility in the WIC Program Integrity of BenefitsEvaluation of the WIC Improper Payment RateIntegrity of Benefits* Controls for Authorizing SNAP Retailers Integrity of BenefitsNational School Lunch Program State Retention of Improperly PaidFundsIntegrity of Benefits* National School Lunch/School Breakfast Programs – Error Rates Integrity of BenefitsSNAP Error RatesIntegrity of Benefits* FY 2012 FS Financial Statements Improvement InitiativesFY 2013 FS Financial StatementsImprovement Initiatives* Management of Oil and Gas Resources on National Forest SystemLandNatural ResourcesFS* + Recovery Act – FS Performance Measures Natural ResourcesFS – Secure Rural SchoolsImprovement InitiativesFS – Contracting PracticesImprovement Initiatives* Firefighting Cost Share Agreements with Non-Federal Entities Improvement Initiatives* + Recovery Act – FS’ Hazardous Fuels on Non-Federal Lands Natural ResourcesUSDA OIG Fiscal Year 2013 Annual Plan 17

Appendix EFSAFSISAGENCY TITLE GOAL* Review of FSA Accounting for FY 2012 Improvement Initiatives*Review of FSA Accounting for FY 2013Economic Adjustment Assistance to Users of Upland CottonFSA Compliance ActivitiesConservation Reserve Program Subscription and EnvironmentalBenefitsConservation Loan Guarantee ProgramControls Over Imported Meat and Poultry ProductsFSIS State Inspection ProgramsImplementation of the Public Health Information System forDomestic InspectionFollow up on 2007 and 2008 Audit Initiatives in FSISControls Over the Hazard Analysis and Critical Control Point(HACCP)-Based Inspections Models Project (HMP) at PoultryPlantsReview of FSIS Controls and Procedures for Detecting and HandlingCampylobacterImprovement InitiativesIntegrity of BenefitsIntegrity of BenefitsIntegrity of BenefitsIntegrity of BenefitsSafety and SecuritySafety and SecuritySafety and SecuritySafety and SecuritySafety and SecuritySafety and Security* FSIS Sampling of Boxed Beef for E. coli Safety and Security*FSIS – Inspections and Enforcement Activities at Swine SlaughterPlantsSafety and SecurityMULTIPLE* FY 2012 USDA Financial Statements Improvement Initiatives* +*FY 2013 USDA Financial StatementsUSDA’s FY 2012 Compliance With the Improper PaymentsElimination and Recovery Act of 2010Fiscal Year 2012 Executive Order (E.O.) 13520 Reducing ImproperPayments, High Dollar Overpayment Report ReviewContracting Officers’ Technical Representatives (COTR) Work forRecovery Act ContractsFY 2012 Federal Information Security Management Act (FISMA)ReportFY 2013 Federal Information Security Management Act (FISMA)ReportManagement and Security Over USDA iPads and Wireless AccessPointsImprovement InitiativesImprovement InitiativesIntegrity of BenefitsImprovement InitiativesImprovement InitiativesImprovement InitiativesImprovement Initiatives18 USDA OIG Fiscal Year 2013 Annual Plan

Appendix EAGENCY TITLE GOALMULTIPLE* + Recovery Act Contract Closeout Process Improvement Initiatives***USDA Contracts Awarded Based on Sole-Source JustificationsReview of the Department’s U.S. Bank Purchase and Travel CardDataSection 632(a) Funds From the U.S. Agency for InternationalDevelopment (USAID) to USDAEffectiveness of the Department’s Recent Efforts To EnhanceAgricultural TradeUSDA’s Implementation of the “Do Not Pay List”Improvement InitiativesImprovement InitiativesImprovement InitiativesImprovement InitiativesImprovement Initiatives* USDA Controls Over Shell Egg Inspections Safety and Security**AMS and FSIS Challenges of the Workforce at Beef EstablishmentsUSDA’s Controls Over Economy Act Fund Transfers for Green BookProgramsVerifying Credentials of Veterinarians Employed or Accredited byUSDAEmergency Conservation and Emergency Watershed Program FundsImprovement InitiativesImprovement InitiativesSafety and SecurityIntegrity of Benefits* Rural Development Procurement Controls Integrity of BenefitsUse of Recovery Operations Center (ROC) for USDA AuditsSingle Audit ManagementSpecial RequestsAudit Follow-upImprovement InitiativesIntegrity of BenefitsImprovement InitiativesImprovement InitiativesNASS Security Review of NASS Lockup Procedures Improvement InitiativesNIFA Agriculture and Food Research Initiative Improvement InitiativesNRCS* FY 2012 NRCS Financial Statements Improvement Initiatives* +FY 2013 NRCS Financial StatementsNRCS Use of Recovery Act Funds for the Rehabilitation of FloodControlImprovement InitiativesSafety and Security* NRCS Oversight and Compliance Activities Improvement Initiatives* +* +USDA’s Controls Over the Farm and Ranch Lands ProtectionProgramEasement ComplianceEnvironmental Quality Incentives ProgramRecovery Act – Emergency Watershed Protection Program,Floodplain Easements, Field ConfirmationsRecovery Act – Emergency Watershed Protection Easements andWatershed Operations Programs, EffectivenessControls Over the Conservation Stewardship ProgramNatural ResourcesNatural ResourcesIntegrity of BenefitsIntegrity of BenefitsIntegrity of BenefitsNatural ResourcesUSDA OIG Fiscal Year 2013 Annual Plan 19

Appendix EOCFOAGENCY TITLE GOALAgreed-Upon Procedures – Employee Benefits, Withholdings/Contributions and Supplemental Semiannual Headcount ReportSubmitted to the Office of Personnel ManagementStatement on Standards for Attestation Engagements (SSAE) No. 16,Report on Controls at the National Finance CenterImprovement InitiativesImprovement InitiativesOCIOReview of Selected Controls at the National Information TechnologyCenterReview of USDA’s Telecommunication Operations and RelatedSecurityImprovement InitiativesImprovement InitiativesReview of USDA Contractor DatabasesImprovement InitiativesOPPMReview of the Department’s Fleet Charge Card DataImprovement InitiativesReview of the Department’s Interest and Penalty PaymentsImprovement InitiativesIntermediary Relending ProgramIntegrity of BenefitsRBS Grant Programs – Dual FundingIntegrity of BenefitsRBS* +Recovery Act – Rural Business Enterprise Grants, FieldConfirmationsImprovement Initiatives* +Recovery Act – Business and Industry (B&I) Guaranteed LoanProgram, Effectiveness ReviewIntegrity of BenefitsRural Energy for America ProgramIntegrity of BenefitsRD* FY 2012 Rural Development Financial Statements Improvement InitiativesFY 2013 Rural Development Financial StatementsImprovement InitiativesRural Development’s Workforce Succession PlanningImprovement Initiatives* +Recovery Act – Loss Claims Related to Single Family Housing (SFH)Guaranteed LoansIntegrity of BenefitsRHSRural Rental Housing Rental Assistance Improper PaymentsServicing of SFH Direct Loans and Payment Assistance RecaptureIntegrity of BenefitsIntegrity of Benefits* +Recovery Act – SFH Direct and Guaranteed Loans, EffectivenessReviewIntegrity of BenefitsRMA*FY 2012 Federal Crop Insurance Corporation (FCIC) FinancialStatementsFY 2013 FCIC Financial StatementsAccuracy of Approved Insurance Provider (AIP) Underwriting ofNon-Program Crop Insurance PoliciesImprovement InitiativesImprovement InitiativesIntegrity of Benefits* Controls Over Prevented Plantings Integrity of Benefits* Federal Crop Insurance Programs – Organic Crops Integrity of Benefits* AIP Reduction of Inconsistent Yields Integrity of Benefits20 USDA OIG Fiscal Year 2013 Annual Plan

Appendix ERUSAGENCY TITLE GOAL* +RUS Controls Over Recovery Act Water and Waste Loans andGrants Expenditures and Effectiveness ReviewIntegrity of Benefits* + Recovery Act Broadband Initiatives Program Improvement InitiativesBroadband Community Connect Grant ProgramIntegrity of BenefitsOSECReview of USDA’s Classification and Declassification ProcessUSDA ConferencesImprovement InitiativesImprovement InitiativesNotes:Goal 1Goal 2Goal 3Goal 4Safety and Security - Strengthen USDA’s ability to implement safety and security measures to protect the public health aswell as agricultural and Departmental resources.Integrity of Benefits - Reduce program vulnerabilities and strengthen program integrity in the delivery of benefits toindividuals.Improvement Initiatives - Support USDA in implementing its management improvement initiatives.Natural Resources - Increase the efficiency and effectiveness with which USDA manages and exercises stewardship overnatural resources.USDA OIG Fiscal Year 2013 Annual Plan 21

Overview of OIG Plans for Fiscal Year 2013For FY 2013, we removed one performance measure and added three new measures, raising the total performance measures to 32.The following tables illustrates the FY 13 direct resources to be spent on each goal and the new FY 13 performance targets.Percentage of Direct Resources To Be Spent on Each FY 2013 Goal Audit Investigations(1) Strengthen USDA’s ability to implement safety and security measures toprotect the public health as well as agricultural and Departmental resources.10.0% 7%(2) Reduce program vulnerabilities and strengthen program integrity in thedelivery of benefits to individuals.33.7% 83%(3) Support USDA in implementing its management improvement initiatives. 51.3% 9%(4) Increase the efficiency and effectiveness with which USDA manages andexercises stewardship over natural resources.5.0% 1%(5) Strive for a highly qualified, diverse workforce with the tools and trainingnecessary to continuously enhance OIG’s ability to fulfill its mission andN/A N/Acommunicate its accomplishments. 99Work on Goal 5 includes: (1) the OIG mission support work of the Offices of Counsel, Management, and Compliance and Integrity; and (2) the training,general supervision, and Equal Employment Opportunity work done by staff in all OIG organizational units.22 USDA OIG Fiscal Year 2013 Annual Plan

Overview of OIG Plans for Fiscal Year 2013Performance MeasuresFY 12Target(1) Percentage of OIG direct resources dedicated to critical-risk or high-impact activities. 92%(2) Percentage of audit recommendations where management decisions are achievedwithin 1 year.(3) Mandatory, Congressional, Secretarial and Agency (MCSA) requested auditsinitiated where the findings and recommendations are presented to the auditeewithin established or agreed-to timeframes (includes verbal commitments).(4) Percentage of closed investigations that resulted in a referral for action to theDepartment of Justice, State or local law enforcement officials, or a relevantadministrative authority.(5) Percentage of closed investigations that resulted in an indictment, conviction, civilsuit or settlement, judgment, administrative action, or monetary result.FY 12Actual97.7%99.6%Audit94.3% Inv.FY 13Target92%90% 96.8% 90%90% 91.9% 90%70% 88.8% 75%65% 71.2% 70%(6) On a biannual basis, positive employee satisfaction rate reported in staff surveys. 70% N/A 70%(7) OIG Hotline will process, research, and refer USDA health and safety complaintswithin 24 hours of receipt by an analyst.80% 91.8% 80%(8) Issue new or update 10 Inspector General directives. 80% 120% 90%(9) Time from receipt of an SF-52 for a standard recruitment action until positions areposted and opened through the automated system averages 10 days.(10) Time to issue candidate certificates after the closing date of an announcementaverages 5 days.(11) All Information Technology Division (ITD) systems including the LAN, WAN,e-mail, and ARGOS remain operational, excluding planned outages for systemmaintenance and outages caused by outside factors.90% 100% 90%90% 85.7% 90%97% 99.9% 97%(12) ITD staff will make an initial response to help desk request within 2 hours or less. 85% 97.8% 90%(13) ITD staff will resolve help desk request within 24 hours. 85% 94.3% 85%(14) Internal and external security incidence response and resolution accomplished within30 days of incident in accordance with the Agriculture Security Operations Center(ASOC).(15) Budget information provided to the Department for the Office of Management andBudget requirements on time.(16) Accounting information and regular reports submitted to the National FinanceCenter and the Office of the Chief Financial Officer on time.80% 100% 90%95% 96.8% 95%95% 95.1% 95%(17) Micro-purchases awarded within 3 working days of receipt of approved AD-700. 90% 98.9% 90%(18) All public reports meet management and statutory timeframes and contentrequirements.95% 100% 95%USDA OIG Fiscal Year 2013 Annual Plan 23

Performance MeasuresFY 12TargetFY 12ActualFY 13Target(19) Positive evaluation scores on OIG internal training course evaluations. 80% 78.5% 80%(20) The Equal Employment Opportunity (EEO) Counselor’s internal and externalreports will be completed within 15 calendar days after completing the counselingperiod.(21) *A Diversity Strategic Plan will be developed and will include objectives addressinghow each goal will be reached and performance measures to assess our progress.85% 100% 90%N/A N/A 100%(22) Inspection reports issued in final with management response within 60 days. 85% 100% 85%(23) Inspection report recommendations accepted annually. 85% 98.2 85%(24) Total requests from Congress acknowledged either orally or in writing within 5working days of receipt.(25) Counsel to the Inspector General issues IG subpoenas within 5 working days uponreceipt of complete information for review.90% 96.7% 90%90% 100% 90%(26) *Meet statutory deadlines on Freedom of Information Act appeals. N/A N/A 95%(27) *Issue legal opinions within 30 calendar days of receipt of request, or other agreed-todate.N/A N/A 80%Note: *New Performance MeasurePerformance Measures for Recovery Act Work*FY 12TargetFY12ActualFY 13Target(1) Notify USDA agency managers of significant audit findings related to Recovery Actprograms, along with recommendations for corrective action, within 30 days afteridentification.(2) Respond to Recovery Accountability and Transparency Board-sponsored requestsand projects within established schedules or agreed-to timeframes.(3) An investigative determination to accept or decline an allegation of whistleblowerretaliation is made within 180 days of receipt.(4) Whistleblower retaliation allegations are investigated and reported within 180 daysof receipt.(5) Timely and accurate monthly Recovery Act funds reports submitted to the RecoveryAccountability and Transparency Board.85% 85% 100%85% 85% 94.4%100% 100% 100%75% N/A 75%95% 100% 95%Note: *Work performed under the Recovery Act will be phased out after the first quarter of the fiscal year.24 USDA OIG Fiscal Year 2013 Annual Plan

To learn more about OIG, visit our website atwww.usda.gov/oig/index.htmHow To Report Suspected Wrongdoing in USDA ProgramsFraud, Waste and Abusee-mail: USDA.HOTLINE@oig.usda.govphone: 800-424-9121fax: 202-690-2474Bribes or Gratuities202-720-7257 (24 hours a day)The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its programs and activities onthe basis of race, color, national origin, age, disability, and where applicable, sex (including gender identityand expression), marital status, familial status, parental status, religion, sexual orientation, political beliefs,genetic information, reprisal, or because all or part of an individual’s income is derived from any publicassistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who requirealternative means for communication of program information (Braille, large print, audiotape, etc.) shouldcontact USDA’s TARGET Center at (202) 720-2600 (voice and TDD).To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the AssistantSecretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or calltoll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or(800) 845-6136 (Spanish Federal relay).USDA is an equal opportunity provider and employer.