3 

Farm Credit Administration Office of Inspector General

1501 Farm Credit Drive

 McLean, Virginia 22102-5090

 

October 14, 2016 

The Honorable Kenneth A. Spearman, Board Chairman

The Honorable Dallas P. Tonsager, Board Member

The Honorable Jeffery S. Hall, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Board Chairman Spearman and FCA Board Members Tonsager and Hall: 

Enclosed is the semiannual report on the activities of the Farm Credit Administration’s (FCA or Agency) 

Office of Inspector General (OIG) for the period April 1, 2016 through September 30, 2016. This is the 

fifty-fifth report since the establishment of the OIG on January 22, 1989. 

I submit this report in accordance with the Inspector General Act of 1978, as amended (IG Act). Section 

5(b) of the IG Act requires that the FCA Board send this report to the appropriate Congressional 

committees and subcommittees within 30 days after the date of this transmittal, accompanied by 

management’s report on the status of audit, inspection, and/or evaluation action items. 

I would like to thank Board Chairman Kenneth Spearman and Board Members Dallas Tonsager and 

Jeffery Hall for their support of the OIG’s work. I would also like to acknowledge FCA management’s 

positive and timely reaction to our work. I look forward to continuing a harmonious and productive 

relationship. 

The OIG issued four program audit reports during this reporting period on: FCA’s Controls Over the 

Electronic Official Personnel Folder, Examination of Business Continuity at FCS Institutions, FCA’s 

Position Management and Job Evaluation Program, and FCA’s Oversight of Young, Beginning, and Small 

Farmer Programs. We also issued one inspection report on Elimination of Unnecessary Use of Social 

Security Numbers at FCA. 

This year, the required external peer review of our audit function was completed by the IG of the Federal 

Labor Relations Authority. Our office received a “pass,” the highest of ratings; indicating our office’s 

system of quality control for the audit organization was suitably designed and complied with to provide 

reasonable assurance that performance and reporting is in conformance with professional standards in all 

material respects. In addition to audit and inspection reports, we continued to conduct surveys on the 

examination program, and we address investigation matters.

I look forward to continuing a responsive and effective relationship between the OIG and the FCA Board, 

a partnership striving continuously to strengthen FCA operations. 

If you have any questions, please call me at (703) 883-4036 or 4030.

Sincerely,

Elizabeth M. Dean

Inspector General

Enclosure
Table of Contents

Message from the Inspector General ..................................................................................... 1

Background........................................................................................................................... 2 

Strategic Goals ...................................................................................................................... 4 

Audits, Inspections, and Evaluations...................................................................................... 7 

REPORTS ISSUED................................................................................................................ 7 

AUDITS AND EVALUATIONS IN PROCESS........................................................................... 13

STATUS OF AGREED-UPON ACTIONS AND RECOMMENDATIONS....................................... 14

Other Reports ..................................................................................................................... 17

QUARTERLY SURVEY OF FARM CREDIT SYSTEM INSTITUTIONS.......................................... 17

Investigations...................................................................................................................... 19

Legislative and Regulatory Reviews ..................................................................................... 20

Congressional Interaction.................................................................................................... 22

Outreach............................................................................................................................. 23

OIG Staff ............................................................................................................................. 25

Annex.................................................................................................................................. 26

Appendix A.......................................................................................................................... 27

Appendix B.......................................................................................................................... 28 

Appendix C.......................................................................................................................... 29

Appendix D ......................................................................................................................... 30

Appendix E.......................................................................................................................... 31 

Appendix F .......................................................................................................................... 32

Appendix G ......................................................................................................................... 33

Appendix H ......................................................................................................................... 34

FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

1 

Message from the Inspector General

accepted and there is a willingness to consider and make 

Message from the Inspector General 

I am pleased to submit this Semiannual Report to the Congress. This report 

summarizes the activities and accomplishments of the Farm Credit Administration’s (FCA or 

Agency) Office of Inspector General (OIG) for the period April 1, 2016 through September 30, 

2016. The OIG’s efforts were directed toward implementing the OIG’s Fiscal Year (FY) 2016 

strategic and operating performance plan and budget. The OIG does so by performing audits, 

inspections, and evaluations of FCA programs and operations; conducting investigations; 

reviewing existing and proposed legislation and regulations relating to Agency programs and 

the IG community; and providing objective, independent reporting and consultation with the 

FCA Board. 

The OIG issued five audit and inspection reports during this reporting period.

Additionally, the OIG issued 26 surveys to Farm Credit System (FCS) institutions, designed to 

obtain feedback on the quality of the FCA examination program. Two survey reports 

summarizing the results were delivered to the Chief Examiner and FCA Board. We completed 

audits of: FCA’s Controls Over the Electronic Official Personnel Folder, Examinations of 

Business Continuity at Farm Credit System Institutions, FCA’s Position Management and Job 

Evaluation Program, and FCA’s Oversight of Young, Beginning, and Small Farmer Programs. 

We also completed an inspection on the Elimination of Unnecessary Use of Social Security 

Numbers at FCA. 

I would like to acknowledge the effective efforts of the talented OIG staff in providing 

timely and comprehensive products. These OIG efforts, together with the interest and 

cooperation of Agency management, continue to result in improved programs and operations 

at FCA. The FCA management is both cooperative and responsive. OIG findings are generally 

improvements. I look forward to continuing our positive 

relationship with all FCA managers and collaboration with 

the FCA Board, as we continue to strengthen FCA operations

in good times and in more challenging times to meet the needs

of American agriculture, keeping the nation’s economy strong 

and helping meet global food needs. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

2 

Background 

FARM CREDIT ADMINISTRATION

The Farm Credit Administration (FCA or Agency) is an independent Federal agency of the United 

States government responsible for the regulation and examination of Farm Credit System (FCS or 

System) institutions chartered under the Farm Credit Act of 1971, as amended (Farm Credit Act). 

As a non-appropriated agency, FCA funds its expenses primarily through assessments to the 

institutions it regulates. FCA’s Fiscal Year 2016 budget was $66,200,000. 

At the end of the prior semiannual reporting period, the Agency had 288 employees. At the end of 

this reporting period, FCA had 314 employees, about half of which are examiners located in five field 

offices. 

Headquarters McLean, VA

Bloomington, MN

Sacramento, CA Denver, CO

Dallas, TX

FARM CREDIT SYSTEM

The FCS is a Government-sponsored enterprise comprised of 3 Farm Credit Banks, 1 Agricultural 

Credit Bank, and 74 associations serving all 50 states and Puerto Rico that primarily make loans to 

agriculture. The System raises funds by selling securities in the national and international money 

markets through its special purpose entity, the Federal Farm Credit Banks Funding Corporation. 

These securities are not guaranteed by the U.S. Government. 

The Federal Agricultural Mortgage Corporation (Farmer Mac), also a part of the FCS, is chartered by 

the Federal government to provide a secondary market for agricultural mortgage loans. Farmer Mac 

is publicly traded and issues its own debt securities. Additionally, there are five active service 

corporations that provide services to FCS entities and eligible borrowers.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

3 

Background 

OFFICE OF INSPECTOR GENERAL

The mission of the Office of Inspector General (OIG) is to be an agent of positive change, striving for 

continual improvement in FCA’s management and program operations. The Inspector General Act of 

1978, as amended, established the FCA OIG in 1989. 

The Inspector General is appointed by the FCA Board without regard to political affiliation and solely 

based on integrity and demonstrated ability in accounting, auditing, financial analysis, management 

analysis, investigations, law, or public administration. The OIG’s FY 2016 budget was $1,493,393.

The OIG’s proposed FY 2017 budget is $1,563,324. 

While the OIG is under the general supervision of the FCA Board, it operates with independent 

personnel and contracting and budget authority. The Inspector General reports both to the FCA 

Board and to the Congress. 

The OIG has three major components: audits, inspections, and evaluations of programs and 

operations; investigations; and outreach. 

Office of Inspector General

Audits, 

Inspections, and 

Evaluations

Investigations Outreach 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

4 

Strategic Goals 

To accomplish our mission, the OIG has three strategic goals in place that are aligned to FCA’s 

mission, programs, and activities (see the OIG’s Strategic and Operating Performance Plan for 

additional information). The following list summarizes our strategic goals and related outcomes during

this reporting period.

Strategic Goal 1:

Audit, inspect, and evaluate the Agency’s programs and 

operations to assist the Agency in fulfilling its oversight 

mission more efficiently and effectively. 

In pursuit of this goal, the OIG continues to provide quality reports to FCA 

management for improvement to programs. The OIG initiates a risk-based 

approach in planning our workload. During this reporting period, we issued four 

audit reports on: FCA’s controls over the Electronic Official Personnel Folder;

business continuity examinations; position management; and oversight of young, 

beginning, and small farmer programs. We also issued an inspection report on the 

elimination of unnecessary use of social security numbers at FCA. The issued 

reports were timely and constructive developed to improve Agency effectiveness 

and efficiency. As a result of our work, 17 recommendations were made to FCA 

management. Each action was agreed-upon by Agency management. We also 

have work ongoing for the FY 2016 financial statement audit and FISMA 

evaluation. 

Communication with Agency stakeholders is another key aspect of the OIG’s 

effective oversight. During our reviews we continuously meet with officials to keep 

them informed of results and areas for improvements. The Inspector General also 

holds regular meetings with FCA Board members to discuss work products and 

Agency priorities.

The OIG is continuously working to ensure compliance with standards, improve 

internal processes, and advance professional competencies. This year, in 

compliance with the IG Act and government auditing standards, an external peer 

review of the audit function was performed by the IG of the Federal Labor 

Relations Authority. Our office received a “pass” rating, which is the highest 

possible. In addition, our quality assurance review found the OIG established and 

implemented effective internal policies and procedures. We continue to prioritize 

staff training to both meet requirements for professional education and gain new 

skills. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

5 

Strategic Goals 

Strategic Goal 2: 

Investigate alleged wrongdoing to prevent and detect 

fraud, abuse, and mismanagement in Agency programs 

and operations and to address Congressional, public, and 

employee concerns. 

OIG’s investigative function recognizes the importance of fairness and 

transparency in the OIG’s investigative mission. The Deputy IG/Counsel performs 

the investigative function for the OIG. For this reporting period, we opened two

preliminary investigations and closed one. As of the end of the reporting period, 

the OIG has one pending preliminary investigation. The closed investigation 

addressed allegations relating to travel expenses and the allegations were not 

substantiated. 

We also received 23 complaints via the OIG Hotline during the April through 

September timeframe, four of which were FCS borrower complaints. All 23 

complaints were referred, responded to, or closed during the reporting time period

except two that are pending review. 

OIG’s public release of brief summaries of closed investigations, without including 

personally identifiable information, highlights OIG’s emphasis on transparency in 

performing its statutory mission. These publications also serve as a deterrent 

against wrongdoing and confirm the effectiveness and responsive nature of OIG’s 

investigations. When appropriate, OIG also provides advisories to the Agency on 

systemic issues and increased risks identified during the course of some 

investigations. This heightens public confidence in the integrity of FCA programs 

and oversight operations by strengthening the Agency’s internal policies, 

procedures, and controls. 

OIG’s orientation presentation to all new Agency employees educates employees 

on OIG’s Hotline by encouraging employees to reach out to OIG with concerns 

regarding fraud, waste, and abuse relating to Agency programs and operations. 

OIG’s development of an online fraud awareness training webinar also will provide 

the Inspector General’s office with another avenue for reaching out to Agency 

employees to facilitate an open door between the OIG and Agency employees. A 

new OIG initiative, “Ask the IG”, will provide Agency employees with a mechanism 

to ask questions regarding the IG’s mission and authorities in order to encourage 

communication between the OIG and Agency employees and create a better 

understanding of OIG’s role. OIG also continues its work on cross-cutting audit, 

investigation, and inspection issues that impact not only other OIGs, but Federal 

agencies across the Federal government.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

6 

Strategic Goals 

Strategic Goal 3: 

Review and make recommendations regarding existing and 

proposed legislation and regulations and provide other 

outreach to support the Agency’s oversight mission and the 

Inspector General community on government-wide issues.

Reviewing and commenting on proposed and existing legislation and regulations 

affecting FCA and the IG community is an important area for the OIG. During this 

reporting period, we reviewed 35 items, including 25 legislative initiatives; eight 

final rules; one proposed rule; and one Informational Memorandum issued by the 

FCA’s Office of Examination (OE). These issuances addressed varied issues, 

including, but not limited to: 

• Standards of Ethical Conduct for Employees of the Executive Branch

• Equal Opportunity and Diversity

• Federal Agricultural Mortgage Corporation Governance and Risk Management

• Releasing Information; Availability of Records of the FCA; Freedom of 

Information Act (FOIA) Fees – Regulatory Amendments Under the FOIA 

Improvement Act of 2016 

• Controlled Unclassified Information 

• Revised Guidelines on Submission of Proposals to Merge or Consolidate Farm 

Credit System Banks and Merge or Consolidate Farm Credit System 

Associations

Most OIG products are posted on our public website to ensure timely, effective 

communication and transparency. The OIG annually briefs incoming employees on the 

OIG’s history, mission, reporting, and audit and investigative activities during FCA’s 

new employee orientation. OIG staff participate in workgroups, conferences, and 

training to support and advance the IG community, FCA, and the Federal government. 

The IG is a member of the Executive, Legislation, and Inspection and Evaluation 

Committees of the Council of Inspectors General on Integrity and Efficiency (CIGIE). 

The CIGIE Legislation Committee has engaged in several responses to legislative 

efforts and congressional hearings. The Deputy/Counsel is Vice-Chair of CIGIE’s 

Council of Counsels, and participates in CIGIE working groups, including the Deputy 

Inspectors General Working Group, Council of Counsels to IGs (CCIG), CIGIE Records 

Administrators Group, and Small OIGs Working Group. The auditors are involved with 

CIGIE cross-cutting projects, the Federal Audit Executive Council (FAEC), the 

Inspection and Evaluation Roundtable, and OIG Community Public Affairs.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

7 

Audits, Inspections, and Evaluations 

REPORTS ISSUED

This reporting period, the OIG continued to provide FCA with high quality products. We issued four

audit reports and one inspection report with a total of seventeen agreed-upon actions by FCA 

management. We have two in-process reviews initiated during this six-month period. The OIG also 

issued 26 surveys to FCS institutions and two reports on the survey results to the Chief Examiner 

and FCA Board. The reports summarize survey results and stakeholder opinions on the quality and 

issues involved in the examination function. 

Audit, 

Inpection & 

Evaluation 

Reports

5 Agreed-Upon 

Actions 

Initiated

17

In-Process 

2

Surveys 

Issued to FCS 

Institutions

26

Survey 

Reports

2

The OIG conducts all audits in accordance with Government Auditing Standards issued by the 

Comptroller General of the United States for audits of Federal organizations, programs, activities, and 

functions. Inspections and evaluations are conducted in accordance with the CIGIE Quality 

Standards for Inspection and Evaluation. 

Copies of most OIG reports are available on our website at www.fca.gov/home/inspector.html, or by 

contacting the OIG at (703) 883-4030, or by e-mail at ig_information@fca.gov. We offer a free 

subscription service that provides automatic notification by e-mail when a new report or other 

information is posted to the OIG website. Go to http://apps.fca.gov/subscribeOIG/, provide your 

email, and click join the list.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

8 

Audits, Inspections, and Evaluations 

Audit of FCA’s Controls Over the Electronic Official Personnel Folder

The objective of the audit was to review the effectiveness of controls related to the Electronic 

Official Personnel Folder (eOPF). FCA has a responsibility to maintain official personnel records 

for its employees in accordance with requirements Within FCA, the Human Resources (HR) 

Team oversees the eOPF system.

We found FCA implemented various controls since the eOPF implementation in 2009. The 

Agency created an eOPF security plan, and a process was in place to review a listing of records 

accessed and roles report identifying personnel with access to employee eOPFs. We also found 

personnel actions performed in eOPFs were timely. FCA had awarded a contract to ensure 

service computation dates were accurate and documented correctly. Another contract was let to 

eliminate a backlog of documents to be scanned into eOPFs. The HR Team had conducted a 

benefits review in 2015 focused on ensuring eOPFs contained correct benefit election forms. 

Our review identified opportunities to improve: incomplete or missing forms, access controls,

and progress by contractors. We found issues with forms because of: in-process internal 

procedures; gaps in the process for new, transferred and promoted employees; and an 

ineffective process for collecting emergency contact forms. We also identified former employees 

whose eOPFs were past due for transfer. Some users had logged into the system but were not 

identified as authorized. Lastly, for the contractor hired to review eOPFs for complete Federal 

service history, salary, military service, and other creditable service, many outstanding items 

remained open and needed to be resolved.

In response to our audit, the Agency agreed to take the following actions:

1. Document decisions on those forms FCA is requiring in the eOPF and finalize the eOPF 

Internal Procedures.

 

2. Develop and implement policies, procedures, and/or controls for new, transfer, and 

promoted employees to ensure completeness. 

3. Initiate a process to review and transfer eOPFs for separating personnel. Monitor status 

of transferred files on a quarterly basis to ensure folders are closed and can no longer 

be accessed. 

4. Complete a plan to update missing information that includes finalizing the results from 

the contractor review. 

The final report was issued April 21, 2016.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

9 

Audits, Inspections, and Evaluations 

Examination of Business Continuity at Farm Credit System Institutions

FCA requires FCS institutions to have policies and procedures that address “business 

resumption after disruption.” Business continuity planning refers to the activities necessary to 

continue, resume, and recover an organization’s business processes when operations are 

interrupted unexpectedly. The objective of this audit was to evaluate FCA’s process in 

determining which business continuity procedures were performed at FCS institutions and 

whether there were any gaps during the Agency’s examination process. 

FCA issued guidance in the form of directives and an Examination Manual that provides 

elements an examiner should consider during examination and monitoring of System 

institutions. As a result of our audit recommendations, OE modified a few references in the 

Examination Manual that needed updates. 

In our review of the examination of business continuity procedures performed at System 

institutions, we observed documentation supporting the procedures performed and conclusions

made. In most cases, if a procedure was not performed, there was justification provided in the 

workpapers. In a few cases, the workpapers did not identify justification for skipping a procedure 

during the examination cycle. The reasons for not performing a procedure were a result of the 

risk based approach, resource availability, and priorities. 

OE developed workpaper templates to be used during the examination of business continuity 

that describe the items an examiner should consider. Our audit identified the workpaper 

templates as an effective method for documenting the work performed and observations made 

during examinations of business continuity when they were used. However, the templates were 

not consistently included in the workpaper documentation.

As a result of our audit recommendations, OE took the following actions that will improve the 

examination of business continuity at FCS institutions:

1. Updated references in the Examination Manual.

2. Reminded examiners to document their justifications for examining or skipping the 

business continuity topic at System institutions. 

3. Encouraged examiners to utilize workpaper templates when completing the business 

continuity examination procedures, especially those examiners with little or no 

experience in this area.

The final report was issued on June 1, 2016. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

10

Audits, Inspections, and Evaluations 

Elimination of Unnecessary Use of Social Security Numbers at FCA

The core mission of FCA is to ensure a safe, sound, and dependable source of credit and 

related services for agriculture and rural America. With this mission comes a responsibility to 

safeguard sensitive FCS and loan information, as well as sensitive, personal information within 

the Agency itself, including personally identifiable information (PII). 

The objective of the inspection was to determine whether the Agency has eliminated 

unnecessary use of Social Security Numbers (SSN) and is safeguarding SSN information in 

Agency processes and systems.

We found the Agency is not storing or using Social Security Numbers unnecessarily and there 

are safeguards in place when SSN information is used in Agency processes and systems. The 

Agency:

• Eliminated requests for SSNs from current FCA forms, with the exception of a few for 

which SSN use accomplishes an agency function;

• Does not unnecessarily collect and store SSNs in its processes and systems; and

• Protects SSN information with administrative, technical and physical safeguards. 

The inspection report contained no recommendations or agreed-upon actions.

The final report was issued August 31, 2016. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

11

Audits, Inspections, and Evaluations 

FCA’s Position Management and Job Evaluation Program 

FCA has a position management and job evaluation program to identify, rate, and assign grade 

levels to Agency positions according to their relative contribution to accomplishment of Agency 

goals, objectives, and mission requirements. The objective of the audit was to determine 

whether the position management and job evaluation program is adequately administered. 

We found FCA adequately administered the program. Career ladder positions have generally 

been established and documented in position descriptions, and a system is in place to evaluate 

and rank positions within the Agency. FCA also updated the format for position descriptions to 

correlate with job evaluation factors and provide more standardized information to decrease the 

amount of judgement used for job evaluation scoring. 

Despite these advances, we identified opportunities to further improve the job evaluation system 

and position management. Scoring in the job evaluation system did not always correspond to 

information in position descriptions, and some position descriptions lacked information to 

support rankings. There was a lack of knowledge and documentation surrounding the job 

evaluation system, process, and scoring factors. We also identified incomplete files and 

inconsistent processes for Agency desk audits used to determine whether a position should be 

graded at a different level. 

In response to our audit, the Agency agreed to take the following actions:

1. Create internal procedures on the job evaluation and position management program to 

memorialize and standardize HR processes. Include additional controls over inputs into 

the job evaluation system.

2. Establish and initiate a plan to update all position descriptions to the new format. 

Address inconsistencies identified between position descriptions and the rating system.

3. Document the method chosen to increase transparency of the job evaluation system.

4. Document how the job evaluation system works and how weights are assigned to the 

factors to ensure adequate knowledge of the system exists in the Agency. Safeguard the 

information as appropriate. Seek contractor assistance as necessary. 

5. Document the promotion process at the Executive Management Team phase of the OE 

career ladder. 

6. Revise Policy and Procedure Manual 819 for the position description review and desk 

audit withdrawal processes. 

The final report was issued September 23, 2016. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

12

Audits, Inspections, and Evaluations 

FCA’s Oversight of Young, Beginning, and Small Farmer Programs

The Farm Credit Act of 1971, as amended, set forth requirements for System institutions to 

serve young, beginning, and small farmers and ranchers (YBS). Specific standards for the 

System’s YBS programs are promulgated in FCA regulations. FCA’s oversight includes reviews 

of YBS programs by OE and analysis of trends and regulation development within the Office of 

Regulatory Policy (ORP). The objective of this audit was to determine whether FCA’s oversight 

of YBS programs is effectively administered.

We found oversight was effectively administered, and FCA had an extensive program in place 

to oversee the System’s YBS programs and trends. OE’s examination process includes a riskbased YBS procedure, and ORP analyzes and reports on the System’s YBS trends and 

performance each year through multiple communication channels. This year-round process 

informs Congress, the public, the FCA Board, and System institutions. 

We identified areas for improvement related to documentation, data integrity, and disclosures in 

annual reports to shareholders. ORP had not documented its YBS oversight process and 

control activities in policies and procedures. We also identified improvements to YBS data 

processes, documenting transaction testing in examinations, and development of a plan to 

implement recommendations in ORP’s YBS definitions review. Lastly, annual reports to 

shareholders did not always fully describe the status and results of quantitative and qualitative 

YBS goals. Actions in these areas will strengthen oversight through additional controls, 

consistency, and transparency. 

The following actions were agreed-upon as a result of our audit:

1. ORP document policies and procedures for YBS oversight activities, including:

• A methodology for YBS comparison reporting that accounts for institution size;

and

• A process to address deficiencies identified through YBS reporting and analysis.

2. ORP incorporate YBS oversight activities and processes in internal control planning and

evaluation.

3. ORP develop a plan for addressing recommendations in the Agency’s YBS definitions

review.

4. OE provide guidance to examiners to ensure YBS transaction testing and conclusions

are appropriately documented.

5. ORP complete an interpretation on YBS disclosure requirements in annual reports to

shareholders.

The final report was issued September 28, 2016. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

13

Audits, Inspections, and Evaluations 

AUDITS AND EVALUATIONS IN PROCESS

Audit of FCA’s Financial Statements Fiscal Year 2016

The Accountability of Tax Dollars Act of 2002 requires FCA and certain other agencies to submit 

to the Congress and OMB an audited financial statement each fiscal year.

In continuing to assist the Agency in meeting these requirements, the OIG contracted with 

Harper, Rains, Knight & Company, P.A. to perform the audit of FCA’s financial statements for 

FY 2016. The audit remained ongoing at the end of this reporting period. For FY 2015, the OIG 

also contracted with Harper, Rains, Knight & Company, P.A. to perform the audit. 

FY 2016 Federal Information Security Modernization Act Evaluation 

The evaluation of the Agency’s compliance with the Federal Information Security Modernization 

Act (FISMA) for FY 2016 is performed by the OIG’s Senior Information Technology Auditor and 

Senior Auditor using guidelines established by FISMA, OMB, the Department of Homeland 

Security, and the National Institute of Standards and Technology. This evaluation was ongoing 

as of September 30, 2016. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

14

Audits, Inspections, and Evaluations 

STATUS OF AGREED-UPON ACTIONS AND RECOMMENDATIONS

In total, there were 17 agreed-upon actions added from our five reports issued for the reporting 

period. We had 21 actions open at the beginning of the period to carry over. As of September

30, 2016, 18 agreed-upon actions remained open. 

Audit, Inspection, and Evaluation Agreed-Upon Actions

Report Issued

Carryover

from Prior

6-Month Period

New During this 

6-Month Period

Final Management 

Actions During this

6-Month Period

Open on 

9/30/2016 

FCA’s Commissioning 

Program 3/31/2015 3 0 0 3 

Human Capital Planning 

at FCA 2/29/2016 10 0 10 0 

FCA’s Risk Project 3/31/2016 5 0 1 4 

FCA’s Process in 

Developing and Updating 

Agency Policies and 

Procedures

3/31/2016 3 0 3 0 

FCA’s Oversight of the 

Electronic Official 4/21/2016 0 4 4 0 

Personnel Folder

Examination of Business 

Continuity at Farm Credit 6/1/2016 0 2 2 0 

System Institutions

FCA’s Position 

Management and Job 9/23/2016 0 6 0 6 

Evaluation Program

FCA’s Oversight of Young, 

Beginning, and Small 9/28/2016 0 5 0 5 

Farmer Programs

Total 21 17 20 18 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

15

Audits, Inspections, and Evaluations 

OPEN AGREED-UPON ACTIONS

The following charts show open agreed-upon actions for issued reports as of September 30, 

2016:

FCA’s Commissioning Program (Issued 3/31/15)

Agreed-Upon 

Action Number 1

Identify and track specific commissioning costs to evaluate the cost of the program 

and identify cost-saving opportunities and consider timekeeping code revisions, with 

OMS assistance in implementation.

Agreed-Upon 

Action Number 3

Analyze the costs and benefits of streamlining and consolidating current testing and 

assessment milestones through the elimination of the final Commissioning Test 

simulations. 

Agreed-Upon Revise processes to provide feedback to every Associate Examiner on Technical 

Action Number 9 Evaluations and Commissioning Test multiple-choice test performance.

FCA’s Risk Project (Issued 3/31/16)

Agreed-Upon 

Action Number 1

Add or modify current procedures for large IT investments to:

• Designate a project manager and project management responsibilities;

• Assess resources and determine whether consultants are needed for project 

planning and implementation; and

• Establish guidelines for incremental investment.

Agreed-Upon Establish a control to ensure project management guidance is implemented for large IT 

Action Number 2 investments. 

Create an incremental project plan for the remainder of the Risk Project in 

Agreed-Upon coordination with the Risk Project workgroup. Include an assessment of required 

Action Number 3 resources and tasks requiring consultants and evaluate other tools that may be 

incorporated to accomplish Risk Project goals and objectives.

Agreed-Upon 

Action Number 4

Modify standard operating procedures to define levels of approval for large IT 

acquisitions and establish a control to ensure appropriate reviews and approvals are 

obtained.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

16

Audits, Inspections, and Evaluations 

FCA’s Position Management and Job Evaluation Program 

(Issued 9/23/16)

Agreed-Upon 

Action Number 1

Create internal procedures on the job evaluation and position management program 

to memorialize and standardize HR processes. Include additional controls over inputs 

in the job evaluation system.

Agreed-Upon 

Action Number 2

Establish and initiate a plan to update all position descriptions to

Address inconsistencies identified between position descriptions 

system. 

the new format. 

and the rating 

Agreed-Upon 

Action Number 3 Document the method chosen to increase transparency of the job evaluation system.

Agreed-Upon 

Action Number 4

Document how the job evaluation system works and how weights are assigned to the 

factors to ensure adequate knowledge of the system exists in the Agency. Safeguard 

the information as appropriate. Seek contractor assistance as necessary.

Agreed-Upon 

Action Number 5 Document the promotion process at the EMT phase of the OE career ladder.

Agreed-Upon Revise PPM 819 for the position description review and desk audit withdrawal 

Action Number 6 processes.

FCA’s Oversight of Young, Beginning, and Small Farmer 

Programs (Issued 9/28/16)

ORP document policies and procedures for YBS oversight activities, including:

Agreed-Upon • A methodology for YBS comparison reporting that accounts for institution size and

Action Number 1 • A process to address deficiencies identified through YBS reporting and analysis.

Agreed-Upon 

Action Number 2

ORP incorporate YBS 

evaluation. 

oversight activities and processes in internal control planning and 

Agreed-Upon 

Action Number 3

ORP develop a plan for addressing recommendations 

review.

in the Agency’s YBS definitions 

Agreed-Upon 

Action Number 4

OE provide guidance to examiners to ensure YBS transaction testing and conclusions 

are appropriately documented.

Agreed-Upon 

Action Number 5

ORP complete an interpretation 

shareholders.

on YBS disclosure requirements in annual reports to 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

17

Other Reports 

QUARTERLY SURVEY OF FARM CREDIT SYSTEM INSTITUTIONS

The OIG administers an ongoing survey of FCS institutions regarding the quality and 

consistency of the Agency’s examination function, including the examiners’ performance.

Without attribution, the OIG issues a quarterly report, and, at the end of each fiscal year, a 

summary report on the survey results to the Chief Examiner and the FCA Board.

The survey asks respondents to rate eight statements regarding examination activities, 

communications and FCA regulations and guidance. Additionally, respondents have the 

opportunity to discuss the aspects of the examination that were the most and least helpful to the 

FCS institution’s board and management team. Each quarter there are a relatively small number 

of respondents. Over time, however, analyses of response patterns enable sound conclusions 

as to the quality of the examiners and the examination function. The consistent trend indicates 

the examination program and staff are well regarded.

• Second Quarter (January 1 – March 31, 2016)

In April 2016, the OIG issued 13 surveys to FCS institutions for feedback on the

examination program and staff during the second quarter of FY 2016. Eleven FCS

institutions responded. The OIG issued a report in June 2016 to the Chief Examiner and

the FCA Board.

• Third Quarter Fiscal Year 2016 (April 1 – June 30, 2016)

In July 2016, the OIG issued 13 surveys to FCS institutions for feedback on the third

quarter of FY 2016. Eleven institutions responded. The OIG provided a report in

September 2016 to the Chief Examiner and the FCA Board.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

18

Other Reports 

OIG Strategic and Operating Performance Plan for Fiscal Years 2017-

2018

Each year, FCA OIG prepares a Strategic and Operating Performance Plan to cover the office’s 

goals, budget, and project plan for the upcoming fiscal years. This year, the Agency revised its 

strategic goals, and the FCA OIG did the same in order to ensure its goals work in conjunction 

with the Agency goals that are designed to assist the FCA in fulfilling its oversight and public 

agricultural and rural missions. The FCA OIG streamlined its strategic goals to three goals that 

focus on OIG’s core audit, evaluation, investigation, and outreach missions: 

OIG Goal 1 — Audit, inspect, and evaluate the Agency’s programs and operations to 

assist the Agency in fulfilling its oversight mission more efficiently and effectively.

OIG Goal 2 — Investigate alleged wrongdoing to prevent and detect fraud, abuse, and 

mismanagement in Agency programs and operations and to address Congressional, 

public, and employee concerns.

OIG Goal 3 — Review and make recommendations regarding existing and proposed 

legislation and regulations and provide other outreach to support the Agency’s oversight 

mission and the Inspector General community on government-wide issues.

Quality Assurance Review Report

The objective of the OIG’s annual Internal Quality Assurance Review is to determine whether 

internal procedures were established, implemented, and operating effectively within FCA OIG.

The OIG’s Internal Quality Assurance Review found the OIG established and implemented 

effective internal policies and procedures. The report was completed September 19, 2016.

Peer Review of FCA OIG

A peer review of FCA OIG was conducted by the Federal Labor Relations Authority OIG and 

issued August 2, 2016. The review found that FCA OIG’s system of quality control for the audit 

organization in effect for the year ended March 31, 2016 was suitably designed and complied 

with to provide reasonable assurance that performance and reporting is in conformance with 

professional standards in all material respects. Professional standards for audit organizations 

are established by the Government Accountability office as well as the Council of Inspectors 

General for Integrity and Efficiency. FCA OIG achieved a “pass” rating, which is the highest 

rating possible in the peer review process. An external peer review must be completed every 

three years, as required by the Inspector General Act of 1978, as amended. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

19

Investigations 

Investigation 

closed

1

Investigations 

opened

2

Hotline 

complaints 

processed

23

Investigation 

pending

1

Investigations

This reporting period, the OIG opened two investigations and closed one. The closed 

investigation involved allegations relating to travel expenses and was not substantiated. The 

OIG conducts preliminary investigations to evaluate the extent of investigative activity required 

for specific complaints. It evaluates the nature of the allegation and related jurisdictional issues, 

generally assessing availability of records, credibility, and other factors to determine whether the 

case has criminal, civil, or administration violations that necessitate formal investigation.

Hotline

The OIG Hotline is available 24/7 to receive tips and complaints about fraud, waste, or abuse 

relating to FCA programs and operations. The Hotline allows individuals to report their 

allegations to the OIG directly and confidentially and is available through email, phone, fax, and 

mail. OIG evaluates all Hotline complaints on multiple levels, examining jurisdictional issues, the 

type of allegation, and other factors. OIG refers all borrower complaints to the FCA Office of 

Congressional and Public Affairs as required by FCA policy and procedure, and follows up as 

appropriate.

During the reporting period, the OIG received 23 Hotline complaints, four of which involved 

borrowers. Two of the Hotline complaints are pending review, as they were received at the end 

of the reporting period. The remaining 21 complaints were referred for preliminary investigation

or to the FCA office responsible for reviewing related issues, or they were responded to or 

administratively closed, including 15 closed because they involved matters outside OIG’s 

jurisdiction and/or had already been sent to the appropriate agency. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

20

Legislative and Regulatory Reviews 

This past reporting period, OIG continued to review existing and proposed legislation and 

regulations, and commented or provided analysis as a member of the CIGIE Legislative 

Committee, through the Council of Counsels to the Inspectors General, and to the Agency as 

required. The OIG also continued to review proposed and final regulations. During this reporting 

period, we reviewed:

Legislative 

Initiatives

25

Proposed 

Rule

1

Final Rules

8

Informational 

Memorandum

1

The following were reviewed: 

Legislation 

1. S. 742, Stop Wasteful Federal Bonuses Act of 2015

2. S. 2715, National Security Whistleblower Protection Act of 2015

3. S. 2714, Security Clearance Oversight and Accountability Act

4. S. 2723, Congressional Whistleblower Protection Act of 2016

5. S. 356, Electronic Communications Privacy Act Amendments Act of 2015

6. H.R. 1557, Federal Employee Antidiscrimination Act of 2015

7. S. 2012, Energy Policy Modernization Act of 2015

8. S. 2837, Commerce, Justice, Science, and Related Agencies Appropriations Act of

2017

9. S. 2577, Military Construction, Veterans Affairs, and Related Agencies Appropriations

Act of 2015

10. H.R. 4361, Federal Information Systems Safeguards Act of 2016

11. S. 337, FOIA Improvement Act of 2015

12. S. 2968, OSC Reauthorization Act of 2016

13. H.R. 4639, Thoroughly Investigating Retaliation Against Whistleblowers Act

14. H.R. 4909, National Defense Authorization Act of FY 2017

15. S. 1378, Bonuses for Cost-Cutters Act of 2015

16. H.R. 5709, Federal Records Modernization Act – record retention reporting

requirements

17. H.R. 5485, Financial Services and General Government Appropriations Act

18. S. 795, Bill to Enhance Whistleblower Protection for Contractor and Grantee Employees

19. S. 2972, Grant Act
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

21

Legislative and Regulatory Reviews 

20. S. 2450, Administrative Leave Act

21. S. 2976, The DHS Accountability Act

22. H.R. 5922, Saving Federal Dollars Through Better Use of Government Purchase and

Travel Cards Act of 2016

23. H.R. 5839, The Public Online Information Act of 2016

24. H.R. 5795, Forensic Science and Standards Act of 2016 (related S. 3259, Forensic

Science and Standards Act of 2016)

25. S. 3184, Back the Blue Act of 2016

Proposed Rules 

1. Amendments to 5 CFR Part 2635, Standards of Ethical Conduct for Employees of

the Executive Branch, 81 Fed. Reg. 74004-74018 (Jun. 6, 2016).

Final Rules 

1. Adjustment to Civil Money Penalties Under the Farm Credit Act, 12 CFR § 622.61(a)(2),

81 F.R. 32633 (May 24, 2016).

2. Margin and Capital Requirements for Covered Swap Entities, 12 CFR Part 1221, 81

F.R. 50605 (Aug. 2, 2016).

3. Federal Agricultural Mortgage Corporation Governance; Standards of Conduct; Risk

Management; and Disclosure and Reporting, 12 CFR Parts 650 et seq., 81 Fed.

Reg. 49139 (July 27, 2016).

4. Equal Employment Opportunity and Diversity, 81 F.R. 53482 (Aug. 12, 2016).

5. Tier 1/Tier 2 Capital Framework Final Rule, 81 F.R. 49720 (Jul. 28, 2016).

6. Releasing Information; Availability of Records of the FCSIC; Fees for Provision of

Information, 12 CFR § 1402, 81 F.R. 59427 (Aug. 30, 2016).

7. Releasing Information; Availability of Records of the FCA; FOIA Fees – Regulatory

amendments under the FOIA Improvement Act of 2016, 12 CFR § 602, 81 F.R.

63365 (Sep. 15, 2016).

8. Controlled Unclassified Information, 32 CFR § 2002, 81 F.R. 63342 (Sep. 14, 2016).

Informational Memoranda and Bookletters

1. Revised Guidelines on Submission of Proposals to Merge or Consolidate Farm Credit

System Banks and Merge or Consolidate Farm Credit System Associations (Jun. 1,

2016).
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

22

Congressional Interaction 

During this reporting period, the OIG also continued provide Congress with information 

regarding ongoing Agency and OIG activities through meetings and correspondence. OIG 

issued letter reports on cybersecurity, open recommendations, access to information, and cost 

savings, specifically to the following committees: 

• Senate Committee on Homeland Security and Governmental Affairs;

• Senate Committee on the Judiciary;

• Senate Committee on Agriculture, Nutrition and Forestry; and,

• House Committee on Oversight and Government Reform.

These letter reports responded to the Committees’ requests for information on various topics, 

including any attempts to interfere with IG independence; information on open 

recommendations or limitations placed on the OIG’s access to documents, information, and 

Agency employees; reports not responded to by the Agency within 60 days; and whistleblower 

retaliation allegations. The OIG also issued a letter report as required by section 406(b) of the 

Cybersecurity Act of 2015, which required each OIG to report information regarding its agency’s 

policies, practices, and controls relating to logical access, multi-factor authentication, privileged 

users, and other technology-related areas of interest.

Through its participation in CIGIE activities, including the CIGIE Legislative Committee, and in 

various workgroups and training activities, the OIG provided assistance throughout the IG 

community on crosscutting issues involving legislative and executive changes, including work 

on revisions to government ethics regulations and preparation of a Transition Handbook to be 

made available in the coming months to presidential transition personnel. 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

23

Outreach 

Staff Participation in Activities within the IG Community

OIG staff members are encouraged to take part in organizations that contribute to the mission of the 

Inspectors General community, as well as their individual professional development. Most staff 

members are actively involved in one or more professional organizations, as well as activities within 

CIGIE. 

The Inspector General is a member of CIGIE, which provides a forum for IGs from over 70 

government agencies to discuss government-wide issues and shared concerns. Collectively, the 

members of CIGIE work toward improving government programs and operations, work that involves, 

for example: comments on proposed legislation; development of projects involving cross-cutting 

issues; and training development. The IG continues her leadership role on committees and 

workgroups, and also serves as At Large Delegate on the CIGIE Executive Council. The CIGIE 

Executive Council assists the Chair in governance of the CIGIE and its members are limited to the 

current and former CIGIE Chair and Vice Chair, the chair of each standing CIGIE committee, and the 

At Large Delegate. The IG also continues to serve as a member of CIGIE’s Legislation Committee 

and participates as a member of CIGIE’s Inspection and Evaluation Committee, and is the Chair of 

the Small IG group, a group of IGs who meet quarterly and exchange ideas and practices, as 

necessary. 

The Deputy IG continues her leadership role in the Council of Counsels of IGs (CCIG) as one of two 

Vice Chairs to the CCIG for 2015-2016. The Deputy IG also participated this reporting period in 

CIGIE working groups that examined revisions to ethics regulations, and she also assisted in drafting 

the Presidential Transition handbook as an IG community project. The Deputy IG is a frequent 

contributor to the CCIG’s listserv in answering questions posed by other IG offices; is involved in the 

CIGIE Records Administrators Group; and also attends quarterly meetings for CIGIE groups 

including the Assistant Inspectors General for Investigations, OIG FOIA Working Group, Deputy IGs, 

and the Small OIGs CCIG Working Group. 

The OIG Senior IT Auditor and Senior Auditors participate in cross-cutting audit projects and attend

FAEC meetings and conferences. The IT Auditor attends local ISACA meetings and is actively 

involved in the IT Subcommittee of the FAEC. One Senior Auditor is also a member of the CIGIE 

Roundtable on Inspections and Evaluations and is an Adjunct Instructor for CIGIE’s Training Institute.

OIG employees are also active in Agency workgroups and task forces, including Special Emphasis 

groups such as the Asian Americans and Pacific Islander at FCA; PRIDE at FCA; and Federal 

Women’s Program.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

24

Outreach 

Organizational Briefings and Notifications

The OIG has distributed posters identifying Hotline and contact information and continues to develop 

its Fraud Awareness program to provide training and guidance to FCA employees on reporting 

responsibilities, fraud indicators, methods of reporting, and protections provided to whistleblowers 

under Federal law and policy. OIG has also highlighted articles on fraud and whistleblower topics and 

is developing online training on fraud awareness for the Agency. OIG has recently developed an 

intra agency electronic tool, ASK the IG, through which employees can ask questions of the OIG, or 

make suggestions on topics to review.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

25

OIG Staff 

Staff Development

OIG employees continually seek ways to improve skills and become knowledgeable in the initiatives 

of the community of Inspectors General. Audit and legal staff must meet continuing education 

requirements. Development plans are used to identify long and short-term career goals along with 

specific training and developmental needs. These plans are geared toward enhancing individual skills 

in the performance of official duties, cross training, succession planning and meeting the criteria 

needed to achieve OIG performance goals and objectives.

The OIG also continues to certify its compliance with the Office of Special Counsel’s 2302(c) 

Certification of Whistleblower Notifications by providing its staff with the requisite notice and training 

on prohibited personnel practices and whistleblower protections. In 2014, the OIG’s was one of the 

first OIG’s to complete the OSC 2302(c) certification process, and the FCA OIG continued its

certification status this reporting period.

The following organizational chart shows the OIG as of September 30, 2016: 

Inspector General

Elizabeth Dean

Deputy IG and 

Counsel to the 

Inspector General 

Kathy Gallo

Senior Information 

Technology Auditor

Tammy Rapp

Senior Auditor

Sonya Cerne

Senior Auditor

Tori Kaufman

Management/ 

Program Analyst 

Ava Bell
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

26

Annex 

This annex is provided in accordance with the National Defense Authorization Act for FY 2008. 

This referenced statute requires all Inspectors General appointed under the IG Act to include an 

annex to their semiannual reports as follows:

1) listing all contract audit reports issued during the reporting period containing significant audit 

findings; 

2) briefly describing the significant audit findings in the report; and 

3) specifying the amounts of costs identified in the report as unsupported, questioned, or 

disallowed. 

Significant audit findings are defined as unsupported, questioned, or disallowed costs in excess of 

$10,000,000, or other findings that the Inspector General determines to be significant. It defines 

contracts as a contract, an order placed under a task or delivery order contract, or a subcontract.

No contract audit reports meeting these criteria were issued on behalf of the OIG during this 

reporting period.
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

27

Appendix A 

Index of Reporting Requirements

SECTION TITLE Page

4(a)(2) Review of legislation and regulations 20-21 

5(a)(1) Significant problems, abuses, and deficiencies None

5(a)(2) Recommendations for corrective action 7-16 

5(a)(3) Prior recommendations not yet implemented 15-16 

5(a)(4) Matters referred to prosecutive authorities None

5(a)(5) Information unreasonably refused or not provided None

5(a)(6) List of reports issued 27 

5(a)(7) Summaries of significant reports 8-13 

5(a)(8) Management decisions with questioned costs 28

5(a)(9) Management 

to better use

decisions on recommendations that funds be put 29

5(a)(10) Prior audit reports unresolved None

5(a)(11) Significant revised management decisions None

5(a)(12) Significant management decisions 

General disagreed

with which the Inspector None

5(a)(13) Compliance of Agency financial management system 13 

5(a)(14)(15) Peer reviews conducted of this OIG 30 

5(a)(16) Peer reviews conducted by this OIG 31 

845 National Defense Authorization Act 

Requirement 

of FY 2008 Citation and 25 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

28

Appendix B 

Audit, Inspection, and Evaluation Reports Issued

Report Number of Agreed Upon 

Actions/Recommendations Questioned Costs

Recommendations 

That Funds Be Put to 

Better Use

FCA’s Controls Over the 

Electronic Official 4 $ 0 $ 0

Personnel Folder

Examination of Business 

Continuity at FCS 2 $ 0 $ 0

Institutions

Elimination of 

Unnecessary Use of 

Social Security Numbers 

at FCA

0 $ 0 $ 0

FCA’s Position 

Management and Job 6 $ 0 $ 0 

Evaluation Program

FCA’s Oversight of 

Young, Beginning, and 5 $ 0 $ 0

Small Farmer Programs

Total 17 $ 0 $ 0 
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

29

Appendix C 

Reports with Questioned Costs

Number Dollar Value

 

 Reports Recommendations Questioned 

Costs

Unsupported 

Costs

A. For which no management decision has 

been made by the commencement of the 

reporting period.

0 0 $ 0 $ 0

B. Which were issued during the reporting 

period. 0 0 $ 0 $ 0

Subtotals (A+B) 0 0 $ 0 $ 0

C. For which a management decision was 

made during the reporting period. 0 0 $ 0 $ 0

 (i) dollar value of disallowed costs 0 0 $ 0 $ 0

 (ii) dollar value of costs not disallowed 0 0 $ 0 $ 0

D. For which no management decision has 

been made by the end of the reporting 

period.

0 0 $ 0 $ 0

E. For which no management decision was 

made within six months of issuance. 0 0 $ 0 $ 0
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

30

Appendix D 

Reports with Recommendations that Funds 

Be Put to Better Use

 Number of 

Reports

Number of 

Recommendations

Dollar 

Value

A. 

 

 

 For which no management decision has been 

made by the commencement of the reporting

period. 

0 0 $ 0

B. Which were issued during the reporting 

period. 0 0 $ 0 

Subtotals (A+B) 0 0 $ 0 

C. 

 

 For which a management decision was made

during the reporting period. 0 0 $ 0

 (i) dollar value of recommendations that 

were agreed to by management 0 0 $ 0 

 - based on proposed management action 0 0 $ 0

 - based on proposed legislative action 0 0 $ 0

 (ii) dollar value of recommendations that 

were not agreed to by management 0 0 $ 0

D.

 

 For which no management decision has been

made by the end of the reporting period. 0 0 $ 0

E.

 

 For which no management decision was 

made within six months of issuance. 0 0 $ 0
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

31

Appendix E 

Peer Reviews Conducted of this Office 

Peer Review Performed By Date of Report Function 

Reviewed

Peer Review 

Rating

Federal Labor Relations Authority Office 

of Inspector General August 2, 2016 Audit Pass

U.S. Securities and Exchange Commission

Office of Inspector General December 26, 2007 Investigations Pass
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

32

Appendix F 

Peer Reviews Conducted by this Office 

Peer Review Of Date of Report Function 

Reviewed

Peer Review 

Rating

U.S. International Trade Commission 

Office of Inspector General January 16, 2013 Audit Pass

Consumer Product Safety Commission 

Office of Inspector General May 23, 2011 Audit Pass
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

33

Appendix G 

FCA ORGANIZATIONAL CHART
FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

APRIL 1, 2016 ─ SEPTEMBER 30, 2016

34

Appendix H 

Glossary of Terms

Agency – Farm Credit Administration

CIGIE – Council of the Inspectors General on Integrity and Efficiency

eOPF – Electronic Official Personnel Folder

FAEC – Federal Audit Executive Council

Farm Credit Act – Farm Credit Act of 1971, as amended

Farmer Mac – Federal Agricultural Mortgage Corporation

FCA – Farm Credit Administration

FCS – Farm Credit System

FISMA – Federal Information Security Modernization Act

FY – Fiscal Year

H.R. – House of Representatives

IG – Inspector General

IG Act – Inspector General Act of 1978, as amended

IT – Information Technology

NIST – National Institute of Standards and Technology

OE – Office of Examination

OIG – Office of Inspector General

OIT – Office of Information Technology

OMB – Office of Management and Budget

OMS – Office of Management Services

PPM – Policies and Procedures

Pub. L. – Public Law

S. – Senate

SSN – Social Security Number

System – Farm Credit System

YBS – Young, Beginning, and Small Farmers and Ranchers
REPORT

Fraud    |    Waste    |    Abuse    |    Mismanagement

FARM CREDIT ADMINISTRATION
 

OFFICE OF INSPECTOR GENERAL
 

Phone:  Toll Free (800) 437‐7322; (703) 883‐4316
 

Fax:  (703) 883‐4059
 

E‐mail:  fca‐ig‐hotline@rcn.com

Mail:  Farm Credit Administration
 

Office of Inspector General
 

1501 Farm Credit Drive
 

McLean, VA  22102‐5090