Goal 2: Supervise risk to ensure safety and soundness of the Farm Credit System. Objectives 1. Enhance the value and effectiveness of risk-based examination, oversight, and correction of problems to ensure the safety and soundness of FCS institutions. 2. Develop regulatory guidance and examination procedures that address new ventures of System institutions, including such areas as e-commerce. 3. Design examination programs to evaluate the progress by System institutions in fulfilling the System's public mission. The objectives of Goal 2 focus on: continuing to improve our examination and supervisory programs. These programs have brought positive recognition to the agency and continue to help ensure the System's safety and soundness. Goal 3: Ensure that the Farm Credit Administration's internal organizationa structure and operations are streamlined in an effort to fulfill its public mission i a results oriented manner with a citizen-based focus. Objectives 1. Ensure FCA's management structure promotes efficient and effective fulfillment of the agency's mission. 2. Expand the use of Performance-Based Service Contracting techniques. 3. Expand the application of on-line procurement and other e-government services and -information. The objectives of Goal 3 focus on: • Achieving greater efficiency in FCA internal operations. Structuring the FCA workforce in a way that streamlines the organization. Developing FCA internal operating policies and procedures with a citizen-based focus that are results oriented and, where practicable, market driven. Agency Resources To carry out its mission and reach needed outcomes and results, the agency has requested a budget for direct administrative expenses of $36.7 million for FY 2002 and FY 2003, plus reimbursable expenses. FCA's greatest expenses are its personnel costs. The anticipated costs for salaries, benefits, and Thrift Savings are about 85 percent of the FY 2002 and FY 2003 budgets. Since FY 1988, the FCA has reduced its staff from 565 full-time equivalents (FTEs) to its FY 2001 level of 301.62 FTEs. The FY 2002 and FY 2003 budgets project 284.34 and 280.79 FTEs, respectively. Budget and Time Tracking by Strategic Goals - The Results Act requires the Strategic Plan be linked to the budget. With the addition of goal three, historical costs need to be developed to determine the appropriate distribution of costs to each goal since previously, costs were tracked based on only two goals. The agency has revised its budget and time reporting systems to allow for a more accurate tracking of cost and human capital utilized in the completion of projects. products, and services associated with each of the three goals. Financial Management System - In FY 2001, we improved our financial management system (FMS) and eliminated the material weakness related to the preparation of the annual financial statements. We will begin in FY 2002 to integrate business processes into the FMS beginning with the travel process and the procurement requisitioning process. These initiatives will improve the overall operational capabilities of the agency by streamlining data entry and processing times. These improvements will comply with guidelines and standards applicable to Federal agencies. Information Resources Management Plan - In FYS 2002 and 2003, the FCA will continue to use technologies that help us carry out our mission more efficiently and effectively. Containing costs will remain a high priority. Thus, we will conserve resources by investing only in technology that provides the best possible return measured against the agency's strategic goals. During the next two years, we will replace and update Information Technology (IT) equipment that has reached the end of its life cycle. We will focus on upgrading our network by replacing network switches, routers, and servers and upgrading our Web servers. We will replace our Micron workstations that have reached the end of their life cycle with portable laptop computers. These replacements are necessary to prepare for e-govemment services, including Internet access required by the Workforce Investment Act, and to support the agency flexible workplace policy. The replacements also will improve IT security as our staff increasingly uses the Internet and other IT systems to conduct business. In FY 2002, we also plan to upgrade our network operating system. Other IT projects for FYS 2002 and 2003 include: • Continue to expand the ability to make information available over the Intemet, • Analyzing and streamlining the agency's data and applications inventories, • Creating new IT systems to support line functions, such as Office of Examination's and Office of Policy Analysis's Loan account reporting system replacement and improving the agency's Online Personnel Retrieval System, and • Improving management and security of our Web-based environment. Performance Measurement and Reporting We will use our performance measurement system to measure the agency's progress in carrying out the strategic goals and objectives of our FY 2000-2005 Strategic Plan. We designed the measures to provide a balanced view of the agency's overall performance, considering inputs used, products and services produced, and results reached. Managers are responsible for measuring performance by collecting and analyzing performance data and developing internal controls to ensure the data is accurate and measured consistently throughout the agency. The responsible manager must report the agency's progress on assigned agency-level measures at prescribed intervals and in certain formats. The performance standards of each staff member support the measures of each FCA office. FCA office measures support the agency-level measures. The agency-level measures link to our strategic goals and objectives. By connecting the measures in this way, every employee helps to achieve FCA's strategic goals and objectives. Evaluating Performance FCA has the systems in place to produce reliable performance and cost data to set goals, measure performance against the goals, and evaluate and report results. The agency's integrated control system is used to measure the accuracy and integrity of the information system. The control system consists of three parts: self-assessments, audits and inspections by the agency's Inspector General, and audits by external parties such as the agency's external auditor or the General Accounting Office (GAO). The agency considers the findings from its self-assessments and audits when developing the goals and objectives of its Strategic Plan. For self-assessments, Office of Management and Budget directs us to review and report periodically on our internal controls, financial management, information resources management, and budget control. The agency's self-assessment also includes an evaluation of our performance measurement system. FCA's Inspector General and external auditor regularly evaluate significant portions of the agency's operations and report their findings to Congress. The Inspector General, a member of the agency's Senior Staff, keeps Senior Staff alert to program evaluation issues. Finally, the Inspector General's semiannual reports to Congress identify any problems with our programs and allow Congress to question us further about them. Because FCA voluntarily complies with the Chief Financial Officers Act of 1990 (31 U.S.C. 501), we use an external auditor to conduct an annual review of the agency's financial statements. Testing of selected information systems is a regular part of this audit. The agency considers the findings of its self-assessments and external audits in preserving and improving the integrity of its information systems. FCA's control system complies with the Federal Managers' Financial Integrity Act (FMFIA), Pub. L. 97-255, which was enacted in 1982 (31 U.S.C. 3512). The Congress passed the FMFIA to reassert the responsibility of federal managers for the overall financial integrity of programs under their supervision. The FMFIA also calls on agencies to strengthen internal accounting and administrative controls in federal programs and functions. Appendix 1 -Strategic Goals and Objectives with Related Performance Measures GOAL 1: ENSURE THE FARM CREDIT SYSTEM FULFILLS ITS PUBLIC Objective 1: Ensure FCS institutions fulfill their public mission by reaching Related 1-3 Objective 2: Ensure quality customer service. 1-3 Objective 3: Enable the FCS to serve evolving customer needs and compete 1-3 in new agricultural and financial markets. Objective 4: Enable optimum utilization of Farmer Mac by the FCS and other 1-3 agricultural and rural housing mortgage lenders for the benefit of agricultural producers and rural America. GOAL 2: SUPERVISE RISK TO ENSURE SAFETY AND SOUNDNESS OF THE FARM CREDIT SYSTEM. Related Objective 1: Enhance the value and effectiveness of risk-based examination, | 4-11 oversight, and correction of problems to ensure the safety and soundness of FCS institutions. Objective 2: Develop regulatory guidance and examination procedures that address new ventures of FCS institutions, including such areas 4-11 as e-commerce. Objective 3: Design examination programs to evaluate the progress by 4-11 1 A numenc listing of measures is included in Appendix 2. The measures referenced in this column are those whose results may be affected by the affiliated objective. Goal 3: Ensure that the Farm Credit Administration's internal Related organizational structure and operations are streamlined in an Measures' Objective 1: Ensure FCA's management structure promotes efficient Objective 2: Expand the use of Performance-Based Service Contracting Objective 3: Expand the application of on-line procurement and other E- 12-14 12-14 12-14 |