Audit of Peace Corps/Budget Formulation Process

We recommend that the chief operating officer direct that the Offices of Chief Financial Officer and Office of Strategic Information, Research and Planning collaborate in developing better analytical methods for preparing performance data that focuses on identifying, tracking, and reporting the full cost of resources needed to achieve the desired results for each strategic and performance goal.

We recommend that the chief operating officer ensure that the director of the Office of Strategic Information, Research and Planning develops performance goals that can be linked to the resources, including the associated estimated costs, necessary to successfully achieve them.

We recommend that the chief operating officer, in coordination with the performance improvement officer, review the agency’s Annual and Strategic Performance Plans, budget requests, Congressional Budget Justifications, and Annual Performance Reports prior to their release and provide critical comments and recommendations to responsible agency organizations for purposes of fostering continuous improvement.

We recommend that the chief operating officer ensure that the agency is fully compliant with all applicable Government Performance and Results Act, the Modernization Act, and Office of Management and Budget Circular No. A-11 provisions regarding the format, content, and timeliness of required information.

We recommend that the Director revise the process for reviewing Resource Allocation Requests and budget reductions and update Peace Corps Manual section 702 accordingly, to ensure greater transparency and agency participation in budget formulation by: Coordinating all Resource Allocation Requests and proposals for budget reductions with the office heads prior to their consideration by the review committee; Providing a reasonable exposure period for formulation of feedback on the Resource Allocation Requests and budget reduction proposals; Receiving and discussing feedback after the exposure period, and prior to committee consideration for approval; and Documenting the rationale for budgeting decisions and maintaining such documentation in accordance with applicable laws and regulations.