Semi-Annual Report on 

Office of Examination 

Operations

June 8, 2023

Dan Fennewald, Deputy Director 

Angela Greenlee, Director of Operations

Office of Examination

FCA Board Meeting 

June 2023 Tab 3

1
OE Operations Agenda Topics

▶ Fiscal Year 2023 Operating Plan Objectives

• Risk Supervision and Examination Activities 

• Public Mission

• Operational Efficiency and Effectiveness

• Human Capital

2
Risk Supervision & Examination

▶ Conducted onsite examination and/or oversight 

activities at all funding banks, 29 associations, and 4 

other entities

▶ Issued 28 reports of examination, 17 interim activity 

letters, and 32 FIRS Letters

▶ Maintained a higher level of supervisory oversight at 

four System institutions

▶ Issued examination guidance

3
Risk Supervision & Examination (continued)

▶ National Oversight Plan Focus Areas

• Risk management practices in an uncertain environment

• Phaseout of the London Interbank Offered Rate

• Current Expected Credit Losses (CECL) implementation

• Standards of Conduct

▶ Completed or on target to complete the 5 systemic risk 

strategies and the 5 institution risk strategies 

4
Public Mission

▶ Young, Beginning, and Small Farmers (YBS) Programs

• Made progress on strategies related to the YBS rating system 

and YBS data

▶ Small, low risk associations

• Issued a memo to System institutions clarifying our 

expectations for internal audit programs at certain low-risk 

institutions

• Provided additional guidance to examiners on differential 

expectations for smaller associations with a lower risk profile

5
Operational Efficiency and Effectiveness

▶ Examination Tools

• Continued developing the Examiner Feedback application

• Made enhancements to the EDGe application and reports

▶ OE Operational Processes

• Developed the Risk Control Matrix for OE OMB A-123 audits

▶ FCS Loan Database

• Continued to assess and improve data reliability and develop 

new reports

6
Human Capital

▶ On target to complete strategies related to training, 

development, recruitment and retention, and knowledge 

transfer

• Hired 13 associate examiners and 6 technical specialists

• Attrition levels declined to 6 percent compared to 14 percent at 

the same time last year

• OE Conference planned for August 2023

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Human Capital (continued)

▶ We are on target with total staff, but remain below 

target for commissioned examiners

Total OE Staff

Total OE Staff Planned Projected Variance

Beginning FY 2023 179 173 (6)

Attrition | Retirements (15) (15) 0 

Hirings 16 23 7

Ending FY 2023 180 181 1 

Commissioned Examiners

Commissioned Examiners Planned Projected Variance

Beginning FY 2023 87 84 (3)

Attrition | Retirements (7) (8) (1)

Hirings 2 3 1 

Newly Commissioned 7 2 (5)

Ending FY 2023 89 81 (8)

8
OE Budget Results

▶ Fiscal YTD as of 3/31/2023 

• Actual expenses are in line with budget as we return to normal 

travel

• Full Time Equivalents (FTEs) projected to be slightly over budget

Funds Used

$17.7

47.3%

Funds 

Remaining

$19.7

52.7%

FY 2023 OE Budget

As of 3/31/2023 

FTEs

♦ Projected Full Year FTEs 178.2

♦ Budgeted Full Year FTEs 177.7

Budget Variance 0.5 

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Summary

▶ Effectively conducted examination and oversight 

activities through the 1st half of FY 2023

▶ On target to complete 2023 Operating Plan objectives

▶ Focusing on ensuring OE has sufficient highly skilled 

staff to accomplish our mission

▶ Actively managing our budget as we return to 

normalized travel

10
Discussion

THANK YOU

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