Semi-Annual Report on 

Office of Examination 

Operations

June 9, 2022

Angela Greenlee

Director of Operations

Office of Examination

FCA Board Meeting 

June 2022
OE Operations Agenda Topics

▶ Operating Plan Objectives:

▪Risk Supervision and Examination Activities

• FY 2022 National Oversight Plan (NOP) 

▪Public Mission

▪Operational Efficiency and Effectiveness

▪Human Capital Update

▶ Summary

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Risk Supervision & Examination Activities

FCS institution activities and guidance

(Fiscal Year-to-Date 3/31/2022)

Source: FCS Information Statement

▶ Conducted examination and/or oversight 

activities at all funding banks, all 

associations, and 8 other entities.

▶ Issued 31 reports of examination and 21 

interim activity letters.

▪Three institutions were under a higher 

level of supervisory oversight.

▶ Issued communications and guidance.

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Supervision & Examination Initiatives

2022 NOP Risk Topics and Strategies:

▶ Cybersecurity in an Increasing Threat Environment 

▪Inventory critical information technology (IT) assets of System 

institutions and their counterparties.

▪Assess vulnerability management and cybersecurity incident response 

plans. 

▪Review technology plans for selected institutions and identify and 

inventory major technology initiatives impacting critical financial 

systems.

▪Evaluate the adequacy of controls over ACH/wire transfer programs.

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Supervision & Examination Initiatives

2022 NOP Risk Topics and Strategies:

▶ Loan Underwriting in a Period of Significant Volatility 

▪Assess new loan sources and quality by monitoring changes in RE 

values, reviewing Systemwide RE loan-to-value trends, and examining 

loan underwriting in portfolios with strong loan growth or significant 

cash grain concentrations.*

▪Compare each institution’s LUS and risk rating criteria against System 

guidance and peer institutions.

▪Identify portfolio segments and institutions most vulnerable to drought 

and water challenges and assess LPM practices to mitigate implications.

* OE revised this NOP strategy in the FY 2022 OE Operating Plan because of evolving risk conditions.

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Public Mission

Young, Beginning, and Small Farmers (YBS) 

Programs and Strategies:

▪Develop and implement phase one of the stand-alone YBS rating system 

in partnership with ODAE and other agency offices, aligning with the 

availability of the data from the new qualitative non-lending reporting.

▪Develop a survey and repository for examiners to document an 

institution’s YBS lending best practices and summarize results.

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Operational Efficiency & Effectiveness

▶ Examination tools | Ongoing technology initiatives

▪EDGe and management reporting

▪Data analytics and examination tools

▶ OE budget results (Fiscal year-to-date as of 3/31/2022)

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♦ Projected Full Year FTE's 181.1

♦ Budgeted Full Year FTE's 184.8

 Budget Variance (3.7)

 FTEs
Human Capital Update

▶ Hiring and developing 

Associate Examiners 

▶ Development opportunities

Total OE Staff* Commissioned Examiners*

8

▶ Post-commission training

▶ OE-All hybrid conference

1 Attrition includes two commissioned examiners moving into 

Senior Management. *All known hiring and attritions as of May 31, 2022.
Summary

▶ Continued effectively conducting oversight and 

examination activities through the 1st half of FY 2022.

▶ Conditions still require some modifications in examination 

approach and staff development.

▶ Remain focused on ensuring OE has sufficient highly 

skilled staff to accomplish its mission.

▶ On target to accomplish adjusted 2022 Operating Plan 

objectives.

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