They provide financial and technical assistance to agricultural  producers and rural communities. In addition to closing  offices, NRCS offered buyout and early retirement incentives to  employees affected by the soil survey office closures. Develop workforce reshaping strategies that fully consider alternative  methods. This was also the case for the  percentage change in the size of the workforces from fiscal years 2011 to  2012. USDA’s Policy on Supervisory Ratios Did Not Align with OPM Guidance in Fiscal Year 2012

In fiscal year 2012, USDA policy on supervisory ratios, which targeted a  uniform supervisory ratio of one supervisor for at least nine employees at  all USDA agencies, did not align with OPM guidance. OPM’s guidance  states that analyzing customer needs and workload distribution can help  agencies achieve the right balance of supervisory and nonsupervisory  positions to support their missions. USDA officials were not able to provide us with a documented basis  for this target ratio. USDA’s Service Center Agencies Generally or Partially Followed Leading Practices When Closing Offices and Reducing Staff in Fiscal Year 2012

In fiscal year 2012, USDA’s service center agencies followed or partially  followed four leading practices when closing offices. FSA and RD fully followed two of the four leading practices and partially  followed two others. Demonstrate a Clear Linkage to Workforce Reshaping or Overarching Strategic Goals

NRCS followed, FSA partially followed, and RD did not follow the leading  practice of demonstrating a clear linkage to workforce reshaping or  overall strategic goals when using buyout and early retirement incentives  (FSA  , as shown in fig. In addition, RD officials  did not have a human capital or workforce plan to clearly document links  between its incentives and its workforce reshaping goals. Specifically, without linking buyout and early  retirement incentives to workforce reshaping or broader strategic goals,  RD could not show whether its remaining workforce has the right balance  of skills in the right locations to support its mission. Consider Employees’ Needs

NRCS and RD followed and FSA partially followed the leading practice of  considering employees needs when using buyout and early retirement  incentives (FSA , RD , NRCS  , as shown in fig. USDA’s policy governing organizational changes does not direct agencies  to fully follow leading practices such as presenting all elements of a  business-case or cost-benefit analysis or measuring progress toward  stated goals. In its comment letter, USDA generally agreed with some  of the findings and disagreed with one finding and recommendation. USDA did not explicitly comment on other recommendations. Key contributors to this report are listed in  appendix V.

Appendix I: Objectives, Scope, and Methodology

This report examines: (1) how the workforces of USDA’s service center  agencies changed from fiscal year 2003 to fiscal year 2012, (2) the extent  to which USDA’s policy on supervisory ratios aligned with Office of  Personnel Management (OPM) guidance in fiscal year 2012, and (3) the  extent to which USDA’s service center agencies followed leading  practices when closing offices and reducing staff in fiscal year 2012. We chose the three USDA service center agencies—the Farm Service  Agency (FSA), Natural Resources Conservation Service (NRCS), and  Rural Development (RD)—because, of the eight USDA agencies that had  announced they would close offices and programs in fiscal year 2012,  these agencies had the largest staffing level percent reductions. To determine the extent to which USDA policy on supervisory ratios  aligned with OPM guidance in fiscal year 2012, we reviewed OPM  guidance on its Human Capital Assessment and Accountability  Framework and compared it with USDA’s policy on supervisory ratios;  analyzed workforce data from OPM and USDA databases on supervisory  ratios; reviewed reports from USDA’s service center agencies on their  supervisory ratios and compared them with USDA guidance on  calculating supervisory ratios, as well as standards for internal control in  the federal government; and interviewed officials from OPM, USDA, and  USDA’s service center agencies. 9).
Why GAO Did This Study

FSA, NRCS, and RD, USDA's service center agencies, interact directly with agricultural producers and rural communities through extensive field office structures. Achieving their missions depends in part on sustaining workforces with the necessary knowledge and skills. In fiscal year 2012, FSA, NRCS, and RD closed field offices and offered buyout and early retirement incentives to employees. GAO was asked to review aspects of USDA's human capital management.
This report examines: (1) how the workforces of USDA's service center agencies changed from fiscal year 2003 to fiscal year 2012, (2) the extent to which USDA's policy on supervisory ratios aligned with OPM guidance in fiscal year 2012, and (3) the extent to which USDA's service center agencies followed leading practices when closing offices and reducing staff in fiscal year 2012. GAO analyzed workforce data from OPM and USDA, reviewed documents, interviewed relevant officials, and compared leading practices with the actions agencies took to close offices and reduce staff in fiscal year 2012.

What GAO Found

From fiscal years 2003 to 2012, the size of the workforces declined at the U.S. Department of Agriculture's (USDA) service center agencies—the Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS), and Rural Development (RD). The size of USDA's service center agencies declined by a higher percentage from fiscal years 2011 to 2012 than the average annual percent decline from fiscal years 2003 to 2012 (see fig.).
In fiscal year 2012, USDA policy on supervisory ratios did not align with Office of Personnel Management (OPM) guidance that states that an analytical approach can help agencies achieve the right balance of supervisory and nonsupervisory positions to support their missions. Instead, USDA's policy stated that all its agencies, regardless of their missions, should aim for a target ratio of one supervisor for at least nine employees (1:9). USDA officials were not able to provide a documented basis for this target ratio. In addition, USDA did not ensure that the service center agencies calculated their supervisory ratios the same way. As a result, USDA did not receive comparable information on supervisory ratios.
In fiscal year 2012, USDA's service center agencies generally followed or partially followed leading practices that GAO has identified when closing offices and using buyout and early retirement incentives as follows:
In closing offices, NRCS fully followed, and FSA and RD partially followed, the practice to present a business-case or cost-benefit analysis. USDA's policy on organizational changes did not direct agencies to follow leading practices to demonstrate to stakeholders they considered information such as underlying assumptions and other alternatives.
In using buyout and early retirement incentives, all three agencies fully followed practices to identify reshaping goals and to develop strategies that consider alternatives. However, NRCS followed, FSA partially followed, and RD did not follow the practice to link incentives to workforce reshaping or overall strategic goals. FSA and RD did not have human capital or workforce plans to clearly document how these strategies linked with broader efforts and could not show whether their remaining workforces had the right balance of skills in the right locations to support their missions.

What GAO Recommends

GAO recommends, among other things, that USDA take actions to revise its supervisory ratios policy; amend its policy on organizational changes to follow leading practices; and require RD and FSA to document links between various incentives and reshaping or strategic goals. USDA generally agreed with GAO's findings but disagreed with one finding and recommendation on supervisory ratios. GAO continues to believe in the need for a revised supervisory ratios policy.