Farm Credit Administration 

Office of Inspector General

Audit, Inspection, and Evaluation Plan 

Fiscal Years 2024-2025 

September 22, 2023
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AUDIT, INSPECTION, AND EVALUATION PLAN

The Office of Inspector General (OIG) is tasked with providing independent and objective oversight of the Farm 

Credit Administration (FCA or Agency) and keeping the FCA Board and Congress fully and completely informed 

as to problems and deficiencies relating to FCA programs and operations. Pursuant to its responsibilities, OIG 

performs audits, inspections, and evaluations to ensure that FCA programs are administered effectively and with 

appropriate controls, and to identify opportunities for improvement.

Below are audit, inspection, and evaluation activities planned for fiscal years 2024 and 2025. This plan was 

formulated using a risk-based approach, considering prior oversight work, the control environment, input from 

senior management, statutory requirements, and resource allocations and prioritizations. The planned activities 

may be adjusted in response to changing resources, needs, or circumstances.

REQUIRED REVIEWS

FCA’s Financial Statements Audit

The Accountability of Tax Dollars Act of 2002 requires executive agencies not covered by the Chief Financial 

Officers Act to obtain annual audits in accordance with generally accepted government auditing standards. OIG 

contracts with an independent accounting firm to audit FCA’s financial statements, internal control over financial 

reporting, and compliance with laws and regulations relating to the determination of financial statement 

amounts. OIG will transmit the independent accounting firm’s opinion to the Agency. OIG will ensure that the 

independent accounting firm incorporates an appropriate audit scope and deliverables within appropriate 

timeframes. 

Compliance with the Federal Information Security Modernization Act (FISMA)

FISMA requires Inspectors General to conduct an annual evaluation of their respective agency’s information 

security program and report the results to the Office of Management and Budget and the Department of 

Homeland Security (DHS). The objective of this evaluation is to conduct an independent evaluation of FCA’s 

information security program using the metrics identified by DHS to determine the effectiveness of the 

information security program and practices. OIG may contract with an independent accounting firm to conduct 

FCA’s FISMA evaluation or perform the work with internal OIG staff. If a contractor is used, OIG monitors the 

independent accounting firm and transmits the firm’s evaluation to the Agency. 

Compliance with the Payment Integrity Information Act (PIIA) Inspection 

PIIA requires Inspectors General to annually report on whether their respective agencies complied with the act’s 

requirements. The review includes determining whether the Agency is publishing improper payments information 

in the annual financial statement and conducting risk assessments to identify those programs susceptible to 

improper payments. The objective of this inspection is to determine whether FCA has met all applicable 

requirements of PIIA and evaluate efforts to prevent and reduce improper payments.

Review of Enhanced Personnel Security Program

5 U.S.C. § 11001 requires Inspectors General, beginning two years after implementation of an enhanced personnel 

security program, to conduct a review to assess the effectiveness and fairness to individuals who have been 

determined eligible for access to classified information or eligible to hold a sensitive position. Assessments are 

made in accordance with performance measures and standards to be established by the Director of National 

Intelligence. The objective of this inspection is to determine whether FCA has adequately implemented an 

enhanced personnel security program in accordance with applicable guidelines.
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PLANNED AUDIT, INSPECTION, AND EVALUATION ACTIVITIES

Audits

Controls over Payroll, Compensation, and Benefits

FCA’s Office of Agency Services (OAS) manages the payroll, compensation, and benefits programs for employees. 

OAS works with contractors that provide financial management and payroll administration services. The objective 

of this audit is to determine whether there are adequate controls over the payroll, compensation, and benefit 

programs.

Contracting Process

In July 2020, the FCA Board approved the transfer of Agency procurement functions from OAS to FCA’s Office of 

the Chief Financial Officer. The goal of the program is to acquire products and services that meet program needs 

and provide the best value to the Agency in a timely and effective manner. As a non-appropriated fund agency, 

FCA’s procurement policies are set forth in Policy and Procedures Manual 812, Contracting/Procurement Policy,

and the Agency’s Contracts Desk Manual. The objective of this audit is to determine whether FCA’s contracting 

process is efficient and effective.

Telecommuting and Remote Work

FCA has a telecommuting and remote work program that provides employees the opportunity to perform their 

official duties at an alternate worksite. The COVID-19 pandemic and post pandemic reentry to offices changed 

the Agency’s telecommuting landscape with considerations on safety, location of workers, and office utilization. 

The objective of this audit is to determine whether FCA has implemented controls over the telecommuting and 

remote work program and whether the process is efficient and effective. 

Planning for the Use of Artificial Intelligence and Machine Learning

The increased availability and capacity of computing power and data has furthered rapid adoption of artificial 

intelligence and machine learning utilization in day-to-day business practices. This is an everchanging, fast-paced 

environment with numerous implications as a financial regulator. The objective of this audit is to evaluate FCA’s 

planning efforts for artificial intelligence and machine learning in both the Farm Credit System and at FCA. 

Inspections and Evaluations

Follow-up Review on the Federal Agricultural Mortgage Corporation (Farmer Mac) Assessment Process

FCA assesses Farmer Mac for the costs of the Agency’s regulatory, supervisory, and examination activities. This 

assessment is calculated by OCFO in coordination with FCA’s Office of Secondary Market Oversight (OSMO). In 

March 2018, the FCA OIG issued an audit on OSMO. As part of that review, the OIG identified improvements that 

were needed to FCA’s assessment process for Farmer Mac. The objective of this inspection is to determine 

whether FCA has improved the assessment process for Farmer Mac and whether the process is adequate.

Quality Assurance Process in the Office of Examination (OE)

OE plays a critical role to the Agency’s mission. Examination quality and integrity are integral to the examination 

process. Quality assurance reviews provide an important control to manage risk and ensure quality. The objective 

of this inspection is to determine whether OE has designed and implemented an effective quality assurance 

program.
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Borrower Complaints Process

FCA’s borrower complaint process reviews complaints about Farm Credit System institutions regarding 

noncompliance with the laws and regulations over which FCA has enforcement authority. FCA has the authority 

to enforce borrower rights. If FCA identifies any violations of law or regulation, the findings are handled under 

FCA’s examination and enforcement authorities. The objective of this inspection is to determine whether the 

Agency is effectively and efficiently handling the borrower complaints process. 

Agility in the Office of Information Technology (OIT)

Information security and cybersecurity are fast-paced challenging environments that require an agile and 

responsive workforce. In order to adapt to changing requirements, legislation, and guidance, OIT needs to adopt 

an agile approach to the demands on their office. The objective of this inspection is to evaluate OIT’s efforts to 

align the office and programs for readiness and responsiveness. 

Peer Reviews

The Government Accountability Office’s Government Auditing Standards require audit organizations that 

perform audits or attestation engagements to undergo an external peer review every three years. Similarly, the 

Council of the Inspectors General on Integrity and Efficiency’s (CIGIE) Quality Standards for Inspection and 

Evaluation require inspection organizations to undergo an external peer review in accordance with CIGIE 

requirements. OIG staff are also required to conduct peer reviews of other OIG’s audit and inspections 

organizations. 

FCA OIG Peer Review of Election Assistance Commission OIG Audit Operations

OIG staff is scheduled to conduct the Election Assistance Commission OIG’s external audit peer review beginning 

April 2024. 

FCA OIG Peer Review of U.S. Agency for International Development OIG Inspection and Evaluation

Operations

OIG staff is scheduled to conduct the U.S. Agency for International Development OIG’s external inspection and 

evaluation peer review beginning October 2024.

Peer Review of FCA OIG Audit Operations

The U.S. International Development Finance Corporation OIG is scheduled to conduct FCA OIG’s external peer 

review starting in April 2025. The review will cover our system of quality control for the audit organization.

Peer Review of FCA OIG Inspection and Evaluation Operations

The National Science Foundation OIG is scheduled to conduct FCA OIG’s external peer review of inspection and 

evaluation operations starting in April 2025. The review will cover our system of quality control for the inspection 

and evaluation organization. 
REPORT FRAUD, WASTE, ABUSE, &

MISMANAGEMENT: 

Phone: (800) 437-7322 (Toll-Free)

(703) 883-4316 

Email: fca-ig-hotline@rcn.com 

Mail: 1501 Farm Credit Drive

McLean, VA 22102-5090 

To learn more about reporting wrongdoing to OIG, please visit our website at 

https://www.fca.gov/about/inspector-general.