Department of Agriculture _USDA_

OIG Recovery Act Plan Overview OIG Name: U.S. Department of Agriculture, Office of Inspector General OIG Broad Recovery Act Goals: The overall objectives of our audit oversight are to ensure (1) USDA Recovery Act-related programs are timely and effectively implemented; (2) proper internal control procedures are established; (3) program participants meet eligibility guidelines; (4) participants properly comply with program requirements; and (5) agencies establish effective compliance operations. The overall objective of our investigative oversight is to ensure the integrity of USDA Recovery Act-related programs by (1) timely identifying potential fraud within those programs; (2) swiftly and efficiently investigating potential fraud; (3) prosecuting and seeking administrative action where warranted; and (4) implementing an effective and efficient whistleblower allegation investigation program for both complaints related to Recovery Act funds generally and reprisal complaints of non-Federal employees under the new Recovery Act authorities. As a means of effectuating our overall goal of providing timely and effective oversight of USDA Recovery Act funds, we have undertaken a number of outreach activities, including: (1) immediate meetings with all levels of USDA to highlight our own oversight efforts and solicit input on where those efforts would be most effective; (2) dissemination of oversight best practices to the relevant USDA agencies; (3) notification of Recovery Act fraud schemes as information becomes available; and (4) initiation of fraud awareness briefings and publcation of brochures and hotline posters specifically targeted to fraud in Recovery Act programs. Auditors will assess risk involving all Recovery Act programs prior to developing the audit approach. The process for determining risk will include analysis of prior audit work in the program area, review of the guidance and procedures developed for Recovery Act initiatives, review of internal control procedures implemented by agency managers, and an analysis of the program's susceptibility to fraud and abuse based on prior experience. OIG Broad Outreach Recovery Act Goals: OIG Recovery Act Risk Assessment Process: OIG Recovery Act Funds: $22.5 million Expiration Date of OIG Recovery Act Funds: September 30, 2013 FY 2009 OIG Non-Recovery Act Funds: $85,766 million Number of OIG Planned Recovery Act Hires: 37 OIG Recovery Act Funds to be Allocated to Contracts: Yes Purpose of Recovery Act Contracts: Audits of contracting procedures; audits of Recovery Act funding integrity. Types of Recovery Act Contracts Awarded to Date: None awarded Link to OIG FY 2009 Recovery Act Work Plan: http://www.usda.gov/oig/recovery/OIGSTIMULUSPLAN.pdf OIG FY 2009 Recovery Act Work Plan Agency Program Area Type of Review Agency Recovery Act Entity Performing (Administrative / Financial, Funds Associated Review (OIG Staff, Eligibility, Performance, w/Program Area Contractor, Other) Other) Project Title Background Objective Expected Expected Quarter in Quarter in Expected which Which Number of Final Work will Reports Report will Start be Issued USDA Agricultural Research Service (ARS) $176,000,000 Administrative / Performance OIG Staff and Contractors Deferred Maintenance in Funds were made available to be disbursed through Building and Laboratory competitively bid contracts for critical deferred maintenance projects that can commence promptly Facilities following the enactment of the ARRA. ARS has selected 37 projects in 28 different states and the District of Columbia. The overall objectives of our audit oversight of Q3 FY09 the Recovery Act monies are to ensure (1) USDA recovery-related programs are timely and effectively implemented; (2) proper internal control procedures are established; (3) program participants meet eligibility guidelines; (4) participants properly comply with program requirements; (5) agencies establish effective compliance operations; and (6) agency performance measures are properly developed and supported. Q4 FY11 1 USDA Departmental Administration (DA) $24,000,000 Administrative / Performance OIG Staff and Contractors Additional funds were made available to perform Modernization of See above Agriculture Buildings and necessary construction, repair, and improvements. These funds will be disbursed through competitively Facilities awarded contracts to continue the South Agricultural Modernization Project. Q3 FY 09 Q4 FY 11 1 USDA Farm Service Agency (FSA) Aquaculture Grant Program $50,000,000 Administrative / Financial, Eligibility, Performance OIG Staff Controls Over Aquaculture Grant Recovery Act Funds The Recovery Act authorizes up to $50 million to See above carry out a 2008 Aquaculture Grant Program (the 2008 AGP). Through the 2008 AGP, FSA will provide grants to State governments to assist eligible aquaculture producers that suffered losses associated with high feed input costs during the 2008 calendar year. State grant amounts will be based on the amount of aquaculture feed used in each State during the 2007 calendar year. Q3 FY 09 Q4 FY 09 1 OIG FY 2009 Recovery Act Work Plan Agency Program Area Type of Review Agency Recovery Act Entity Performing (Administrative / Financial, Funds Associated Review (OIG Staff, Eligibility, Performance, w/Program Area Contractor, Other) Other) Project Title Background Objective Expected Expected Quarter in Quarter in Expected which Which Number of Final Work will Reports Report will Start be Issued USDA Farm Service Agency (FSA) Agricultural Disaster Assistance Transition $744,000,000 Administrative / Financial, Eligibility, Performance OIG Staff Supplemental Agricultural Disaster Assistance Programs and American Recovery and Reinvestment Act Agricultural Disaster Assistance Transition The 2008 Farm Bill, enacted on June 18, 2008, See above created several new “Supplemental Agricultural Disaster Assistance” programs. To be eligible for these programs, producers must obtain at least the Catastrophic Risk Protection Program (CAT) level of crop insurance for all insurable crops and/or Noninsured Crop Disaster Assistance Program (NAP) coverage for noninsurable crops. Sales closing dates for CAT and application closing deadlines for NAP have passed for the 2008 crop year for all insurable and noninsurable crops. The 2008 Farm Bill authorized a waiver to allow producers to pay, by September 16, 2008, a buy-in fee to be eligible for Supplemental Agricultural Disaster Assistance for crops for which the producer did not obtain crop insurance or NAP coverage for 2008. The Recovery Act authorized an additional waiver which allows producers another opportunity to pay a buy-in fee for 2008 eligibility to be eligible for Supplemental Agricultural Disaster Assistance except for the Livestock Forage Disaster Program. The buy-in fee must be paid by close of business May 18, 2009. 2/ 2/ 2/ USDA Farm Service Agency (FSA) Direct Farm Operating Loans $173,367,000 Administrative / Financial, Eligibility, Performance OIG Staff American Recovery and Reinvestment Act Direct Farm Operating Loans The Recovery Act authorizes funds for the principal amount of direct farm operating loans under section 311 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941). See above Q3 FY 09 Q4 FY 09 1 USDA Farm Service Agency (FSA) $50,000,000 Administrative / Performance OIG Staff and Contractors Modernization of FSA's Funds were made available to fund FSA's See above Information Technology Information Technology (IT) stabilization and Infrastructure modernization initiative. These funds can be used for salaries and expenses related to this purpose. Food Distribution on Additional funds were made available for facility Indian Reservations improvements and equipment upgrades . Funds Administrative Expenses will be allocated to Indian Tribal Organizations or State Agencies based on a formula. See above Q3 FY09 Q4 FY10 1 USDA Food and Nutrition Service (FNS) Food Distribution Program on Indian Reservations (FDPIR) Food and Nutrition Service (FNS) National School Lunch Program (NSLP) $5,000,000 Administrative / Performance OIG Staff and Contractors Q4 FY09 Q4 FY10 1 USDA $100,000,000 Administrative / Performance OIG Staff and Contractors School Food Service Equipment Assistance Funds were made available for food service equipment assistance grants to school districts. Grants will be awarded on a competitive basis to school food authorities based on need to ensure that children receive healthy, safe meals. See above Q3 FY09 Q4 FY11 1 OIG FY 2009 Recovery Act Work Plan Agency Program Area Type of Review Agency Recovery Act Entity Performing (Administrative / Financial, Funds Associated Review (OIG Staff, Eligibility, Performance, w/Program Area Contractor, Other) Other) Project Title Background Objective Expected Expected Quarter in Quarter in Expected which Which Number of Final Work will Reports Report will Start be Issued USDA Food and Nutrition Service (FNS) Women, Infant, and Children (WIC) $100,000,000 Administrative / Performance OIG Staff and Contractors Enhancements to WIC Management Information Systems Funds were made available to establish, improve, or See above administer WIC management information systems to meet new legislative or regulatory requirements. These funds will be disbursed through discretionary grants to State agencies administering WIC infrastructure projects. Q4 FY09 Q4 FY11 1 USDA Foreign Agricultural Service (FAS) 1/ Trade Adjustment Assistance for Farmers (TAAF) $202,500,000 Administrative, Eligibility, and Performance Review OIG Staff Trade Adjustment Assistance for Farmers (TAAF) The TAAF Program provides assistance to eligible See above farmers and fishermen to adjust to a changing economic environment associated with import competition through technical assistance and cash benefits. The producer of a commodity must have recently suffered a decrease in the national average price, or value of production, or the quantity of production, or value of production, or cash receipts for the agricultural commodity compared to the average of the 3-preceding marketing years, and this decrease can be attributed to an increase in imports. If this criteria is met producers are eligible to receive technical assistance and cash payments to develop and implement Business Adjustment Plans. 2/ 2/ 2/ USDA Forest Service (FS) $650,000,000 Administrative/ Financial and Performance OIG Staff Capital Improvement and Maintenance FS received funding for priority road, bridge and See above trail maintenance and decommissioning, including related watershed restoration and ecosystem enhancement projects; facilities improvement; maintenance and renovation; remediation of abandoned mine sites; and support costs necessary to carry out the work. Q2 FY 09 Q1 FY 10 1 USDA Forest Service (FS) $250,000,000 Administrative/ Financial and Performance OIG Staff Wildland Fire Management FS received funding for hazardous fuels reduction, See above forest health protection, rehabilitation and hazard mitigation on Federal lands. Q2 FY 09 Q2 FY 10 1 USDA Forest Service (FS) $250,000,000 Administrative/ Financial and Performance Contractor Wildland Fire FS received funding for hazardous fuels reduction, See above Management - State and forest health and ecosystem improvement Private Forestry activities on State and private lands. Q2 FY 09 Q2 FY 10 1 OIG FY 2009 Recovery Act Work Plan Agency Program Area Type of Review Agency Recovery Act Entity Performing (Administrative / Financial, Funds Associated Review (OIG Staff, Eligibility, Performance, w/Program Area Contractor, Other) Other) Project Title Background Objective Expected Expected Quarter in Quarter in Expected which Which Number of Final Work will Reports Report will Start be Issued USDA Natural Resources Conservation Service (NRCS) Floodplain Easements $145,000,000 Performance OIG Staff Emergency Watershed Protection Program Floodplain Easements, Audit 10703-1-KC Floodplain easements restore, protect, maintain, See above and enhance the functions of the floodplain; conserve natural values including fish and wildlife habitat, water quality, flood water retention, ground water recharge, and open space; reduce long-term federal disaster assistance; and safeguard lives and property from floods, drought, and the products of erosion. NRCS may purchase easements on floodplain lands that meet program criteria. Purchases are based upon established priorities. The easement provides NRCS with the authority to restore and enhance the floodplain’s functions and values. Landowners retain several rights to the property, including quiet enjoyment, the right to control public access, and the right to undeveloped recreational use such as hunting and fishing. Q2 FY 09 Q2 FY 10 1 USDA Natural Resources Conservation Service (NRCS) - Watershed Operations $145,000,000 Performance OIG Staff Watershed Protection and Flood Prevention Operations Program, Audit 10703-2-KC This voluntary program provides assistance to See above sponsoring local organizations of authorized watershed projects, planned and approved under the authority of the Watershed Protection and Flood Prevention Act of 1954 (P.L. 83-566), and designated watersheds authorized by the Flood Control Act of 1944 (P.L. 78-534). NRCS provides technical and financial assistance to States, local governments and Tribes (as project sponsors) to implement authorized watershed project plans for the purpose of watershed protection; flood mitigation; water quality improvements; soil erosion reduction; rural, municipal and industrial water supply; irrigation water management; sediment control; fish and wildlife enhancement; and wetlands and wetland function creation and restoration. There are over 1,500 active or completed watershed projects. Q2 FY 09 Q2 FY 10 1 OIG FY 2009 Recovery Act Work Plan Agency Program Area Type of Review Agency Recovery Act Entity Performing (Administrative / Financial, Funds Associated Review (OIG Staff, Eligibility, Performance, w/Program Area Contractor, Other) Other) Project Title Background Objective Expected Expected Quarter in Quarter in Expected which Which Number of Final Work will Reports Report will Start be Issued USDA Natural Resources Conservation Service (NRCS) Watershed Rehabilitation $50,000,000 Performance OIG Staff TBD The authority for rehabilitation of aging watershed See above dams is included in section 14 of the Watershed Protection and Flood Prevention Act (PL 83-566). Any of the over 11,000 dams in 47 states that were constructed under the four watershed programs (PL-534, PL-566, Pilot, or RC&D) are eligible for assistance under this authority. Many of these dams are nearing the end of their 50-year design life. Rehabilitation of these dams is needed to address critical public health and safety issues in these communities. Priority for funding of projects is based on a priority ranking system that considers the condition of the dam and number of people at risk if the dam should fail. NRCS may provide technical assistance and 65% of the total rehabilitation project cost. TBD 3/ TBD TBD USDA Rural Housing Service (RHS) - Single Family Housing Guaranteed Program $10,472,000,000 Eligibility / Performance OIG Staff Controls Over Eligibility Determinations for SFH Guaranteed Loan Stimulus Funds Under its Single Family Housing (SFH) program, the Rural Housing Service (RHS) provides guaranteed loans to rural residents to build, repair, renovate or relocate a home, or to purchase a home. Lenders (banks) request a loan guarantee from RHS by submitting information concerning the eligibility of the borrower and the value of the property to be built or bought. RHS reviews this information, and if the borrower is eligible, issues a guarantee to the lender. If the borrower defaults, the Government pays for the majority of the loss, about 80 percent. See above Q2 FY 09 Q4 FY 09 1 USDA Rural Development (RD) $1,000,000,000 Eligibility/ Performance OIG Staff Single Family Housing Direct Program The Rural Housing Service (RHS) Single Family See above Housing (SFH) direct loans are available for low and very low-income households to obtain homeownership. Recovery Act funds may be used to purchase or construct a house, and may also be used to provide payment assistance to borrowers to subsidize (reduce) their mortgage payments. Borrowers submit applications for SFH loans to local Rural Development offices. The local offices perform the loan underwriting, credit analysis, income verification and property appraisal, and, if eligible, approve the borrower for a direct SFH loan. Q2 FY 09 Q4 FY 09 1 OIG FY 2009 Recovery Act Work Plan Agency Program Area Type of Review Agency Recovery Act Entity Performing (Administrative / Financial, Funds Associated Review (OIG Staff, Eligibility, Performance, w/Program Area Contractor, Other) Other) Project Title Background Objective Expected Expected Quarter in Quarter in Expected which Which Number of Final Work will Reports Report will Start be Issued USDA Rural Development (RD) $1,238,000,000 Eligibility / Performance OIG Staff Community Facilities Loan and Grant Programs The RHS Community Facilities (CF) program See above provides direct loans and grants to municipalities, counties, non-profit corporations, and tribal governments. Funds may be used to develop essential community facilities such as schools, libraries, childcare, hospitals, fire and rescue stations, police stations, and public buildings. Q3 FY 2009 Q1 FY 2010 1 USDA Rural Development (RD) $3,800,000,000 Eligibility/ Performance OIG Staff Water and Waste The Rural Utilities Service (RUS) Water and Waste See above Disposal Loan and Grant (W&W) program provides loans and grants for Programs drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas. Eligible applicants can be public bodies, non-profit organizations, and Indian tribes. Business and Industry Guaranteed Loan Program The Rural Business-Cooperative Service (RBS) See above Business and Industry (B&I) guaranteed loan program has the purpose of guaranteeing loans through the private sector to improve, develop, and finance business, industry, and employment in rural communities. A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis, an Indian tribe, a public body, or an individual. Q2 FY 2009 Q1 FY 2010 1 USDA Rural Development (RD) $2,900,000,000 Eligibility / Performance OIG Staff Q3 FY 2009 Q4 FY 2009 1 USDA Rural Development (RD) $20,000,000 Eligibility / Performance OIG Staff Rural Business Enterprise The Rural Business-Cooperative Service (RBS) See above Grant Program Rural Business Enterprise Grant (RBEG) program provides fund for an array of rural projects, including development of land, construction, utilities, capitalization of revolving loan funds, job training, and many more. Rural public entities (towns, communities, and State agencies), Indian tribes, rural private non-profit corporations are eligible to apply for funding. Broadband Loan and Grant Programs RUS will support the expansion of broadband service in rural areas through financing and grants to projects that provide access to high speed service and facilitate economic development in locations without sufficient access to such service. Audit work on the Broadband Recovery Act funds is being led by the Government Accountability Office. OIG may plan work on this area in subsequent years. Q3 FY 2009 Q4 FY 2009 1 USDA Rural Development (RD) $2,500,000,000 Eligibility / Performance OIG Staff Not known Not known Not known Type of Reviews Administrative/Financial Reviews - reviews of management administrative issues, management internal controls, or financial systems/processes Eligibility Reviews - reviews to determine if eligibility requirements were met for a given program Performance Reviews - reviews to determine the effectiveness of a given program Other Reviews - reviews that do not fit within the above categories OIG FY 2009 Recovery Act Work Plan Agency Program Area Type of Review Agency Recovery Act Entity Performing (Administrative / Financial, Funds Associated Review (OIG Staff, Eligibility, Performance, w/Program Area Contractor, Other) Other) Project Title Background Objective Expected Expected Quarter in Quarter in Expected which Which Number of Final Work will Reports Report will Start be Issued 1/ FAS is the lead agency on this program; the Farm Service Agency, Economic Research Service, and Cooperative State Research, Education, and Extension Service are also involved in administering the program. 2/ The Department has determined that new regulations, and/or policies and procedures must be promulgated. Until those have been issued, USDA OIG is only monitoring and tracking the implementation of the new programs. 3/ We are completing an audit of NRCS Rehabilitation of Flood Control Structures. We will follow-up on recommendations and will initiate a new audit when appropriate.