Farm Credit Administration Office of Inspector General

1501 Farm Credit Drive

 McLean, Virginia 22102-5090

 

April 19, 2017 

The Honorable Dallas P. Tonsager, Board Chairman

The Honorable Jeffery S. Hall, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Board Chairman Tonsager and Board Member 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 October 1, 2016 through March 31, 2017. This is the fiftysixth 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 the FCA Board for their support of the OIG’s work. I would also like to acknowledge 

FCA management’s positive and timely reaction to most of our work. I look forward to continuing a 

harmonious and productive relationship. 

The OIG issued five audit, inspection, and evaluation reports during this reporting period. We contracted 

with Harper, Rains, Knight & Company, P.A. to perform the audit of FCA’s financial statements for FY 2016. 

We completed the OIG’s annual evaluation of the Agency’s compliance with the Federal Information 

Security Modernization Act (FISMA). We also completed program reviews of: FCA’s Awards Program, and 

FCA’s Travel and Purchase Card Programs. 

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 

OPEN AGREED‐UPON ACTIONS ............................................................................................................... 15 

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

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

MANAGEMENT ADVISORY REPORTS ...................................................................................................... 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 

Appendix I ................................................................................................................................................... 35 

1 

Message from the Inspector General 

I am pleased to submit this Semiannual Report to the Congress and also acknowledge and congratulate 

Dallas Tonsager in his designation as Chairman and CEO of the FCA Board by President Obama on November 22, 

2016. Chairman Tonsager brings extensive experience in both agriculture and in the Federal government 

through prior service as a member of the FCA Board and with the U.S. Department of Agriculture as Under 

Secretary for Rural Development.

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

Agency) Office of Inspector General (OIG) for the period October 1, 2016 through March 31, 2017. This 

reporting period, the OIG’s efforts were directed toward implementing the OIG’s Fiscal Year (FY) 2017 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, inspection, and evaluation reports during this reporting period. Additionally, 

the OIG issued 31 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 also contracted with Harper, Rains, Knight & Company, P.A. to perform the audit 

of FCA’s financial statements for FY 2016. We completed the OIG’s annual evaluation of the Agency’s 

compliance with the Federal Information Security Modernization Act (FISMA). We also completed program 

reviews of: FCA’s Awards Program, and FCA’s Travel and Purchase Card Programs.

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 continues to be cooperative and responsive. Together, OIG and 

management strengthen operations so that in both good times and in more 

challenging times, we assist in meeting the needs of American agriculture, keeping

the nation’s economy strong and helping meet global food needs.

Elizabeth M. Dean

Inspector General

The Office of Inspector General honors the memory and contributions of the late FCA 

Board Member and former Chairman Kenneth A. Spearman, an esteemed leader of 

the FCA and of the Farm Credit System who inspired trust and focused on building 

consensus in his service to the Agency.

 

 

 

 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 2017 budget is $66,200,000, based on the continuing resolution under which the 

Agency is currently operating (Further Continuing and Security Assistance Appropriations Act of 2017, Public 

Law 114‐254).  

At the end of the prior semiannual reporting period, the Agency had 314 employees. At the end of this 

reporting period, FCA had 310 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 73 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 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 proposed FY 2017 budget is $1,563,324, although 

based on the continuing resolution, the OIG’s current budget remains at the FY 2016 level of $1,493,393. 

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 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 five audit, inspection and evaluation 

reports. These included program reviews of FCA’s Awards Program, as well as FCA’s Travel 

and Purchase Card Programs. We contracted with Harper, Rains, Knight & Company, P.A. 

to perform the audit of FCA’s financial statements for FY 2016. We also issued an 

evaluation report of the FCA’s compliance with the Federal Information Security 

Modernization Act (FISMA). The issued reports were timely and constructively developed 

to improve Agency effectiveness and efficiency. As a result of our work, eight 

recommendations were made to FCA management. Each action was agreed‐upon by 

Agency management. We also have work ongoing for the FY 2017 financial statements 

audit. We also issued a management advisory and a peer review report on the Federal 

Election Commission OIG. 

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 period, in compliance with the IG Act 

and government auditing standards, we performed an external peer review of the Federal 

Election Commission’s audit function. We continue to prioritize staff training to both meet 

requirements for professional education and gain new skills. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 mission. The Deputy IG/Counsel performs the investigative function for the OIG 

and in this reporting period, the OIG opened five investigations and closed two. The two 

closed investigations addressed allegations relating to duty station assignments, alleged 

preselection, time and attendance, awards, and pay increases. The allegations were not 

substantiated. As of the end of the reporting period, the OIG has three pending 

investigations. 

We also received 18 complaints via the OIG Hotline during the October through March 

timeframe, four of which were FCS borrower complaints. All 18 complaints were 

referred, responded to, or closed during the reporting time period. 

The OIG investigated no instances of whistleblower retaliation, and had no instances in 

which the Agency attempted to interfere with the IG’s independence through budget 

constraints, delayed production of records, or objections to oversight activities. The OIG 

continued its established policy of publicly releasing brief summaries of closed 

investigations, without including personally identifiable information. The OIG issued no 

Reports of Investigation for investigations involving a senior Government employee that 

were not disclosed to the public. The OIG believes publication of the summaries of closed 

investigations is indicative of transparency and also keep employees, Congress and the 

public informed of OIG’s ongoing results and serve as a deterrent against wrongdoing.  

When appropriate, OIG 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 and encourages employees to reach out to OIG with concerns regarding fraud, waste, 

and abuse relating to Agency programs and operations. OIG’s continued work on developing an 

online fraud awareness training webinar will also provide the Inspector General’s office with 

another avenue for reaching out to Agency employees to facilitate open door communications. 

This reporting period, the OIG also provided information on whistleblower protections and 

Office of Special Counsel authorities to FCA leaders in a leadership summit that involved all FCA 

upper management officials. OIG continues its work on cross‐cutting audit, investigation, and 

inspection issues that impact not only other OIGs, but agencies across the Federal government. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 33 items, including 25 legislative initiatives; four final rules; two proposed 

rules; and two Informational Memoranda issued by the FCA’s Office of Examination (OE). 

These issuances addressed varied issues, including, but not limited to:  

 Inspector General Empowerment Act and relating reporting guides

 OMB Circular A‐108, Privacy Act and Federal Agency Responsibilities for Review, 

Reporting, and Publication 

 Availability of Records of the Farm Credit Administration under the FOIA 

 Military Lending Act 

 Controlled Unclassified Information Regulations 

 Farm Credit Administration Organization Updates 

 Federal Agricultural Mortgage Corporation Governance, Standards of Conduct, Risk 

Management; and Disclosure and Reporting 

Almost all 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, and most recently briefed FCA leaders in a leadership summit on developments in 

the IG community and lessons learned through OIG’s audits, evaluations, inspections, and 

investigations of Agency programs and operations. 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 started her fourth year as 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 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

7 

Audits, Inspections, and Evaluations 

REPORTS ISSUED 

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

reports, two inspection reports, and one evaluation report, with a total of eight agreed‐upon actions with FCA 

management. We have two in‐process reviews initiated during this six‐month period. The OIG also issued 31 

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. The OIG issued a management advisory and a report on the peer review we conducted 

of the Federal Election Commission OIG’s audit program. 

Audit, 

Inpection & 

Evaluation 

Reports

5 AgreedUpon 

Actions 

Initiated

8

In-Process 

2

Surveys 

Issued to 

FCS 

Institutions

31

Survey 

Reports

2

Management 

Advisory

1

Peer Review 

Report

1

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 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

8 

Audits, Inspections, and Evaluations 

OIG 2016 Evaluation of the Farm Credit Administration’s Compliance with the Federal Information 

Security Modernization Act

The Federal Information Security Modernization Act (FISMA) of 2014 requires an agency’s Chief 

Information Officer and OIG to conduct annual assessments of the agency’s information security 

program. The purpose of FISMA was to provide a comprehensive framework for ensuring the 

effectiveness of information security controls, minimum controls for agency systems, and improved 

oversight of agency information security programs.   

The OIG completed the 2016 independent evaluation of FCA’s compliance with FISMA during this 

reporting period. The evaluation found that FCA has an information security program that continues to 

mature, and FCA’s experienced information technology (IT) team is proactive in their approach to 

information security. Although FCA’s overall information security program was not ranked “Effective” 

based on the Department of Homeland Security’s (DHS) scoring methodology, we did not make any 

recommendations because FCA continues to identify areas to strengthen and improve information 

security. 

OMB required OIGs to evaluate the following areas during 2016: 

1. Risk Management 

2. Contractor Systems 

3. Configuration Management 

4. Identify and Access Management 

5. Security & Privacy Training 

6. Continuous Monitoring Management 

7. Incident Response  

8. Contingency Planning 

FCA established a program in each of these areas that is consistent with FISMA requirements, OMB and 

DHS policy, and applicable National Institute of Standards and Technology’s (NIST) guidelines.  

The final report was issued November 10, 2016. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

9 

Audits, Inspections, and Evaluations 

Audit of FCA’s Financial Statements Fiscal Year 2016

The OIG contracted with Harper, Rains, Knight & Company, P.A., an independent public accounting firm, 

and oversaw the audit of FCA’s financial statements for FY 2016. Harper, Rains, Knight & Company 

completed the audit and issued an unmodified opinion in November 2016.  

In the auditors’ opinion, FCA’s principal financial statements present fairly, in all material respects, the 

financial position of the Agency as of the FY ended September 30, 2016, in conformity with generally 

accepted accounting principles. 

Harper, Rains, Knight & Company considered FCA’s internal control over financial reporting to determine 

the audit procedures for the purpose of expressing an opinion on the financial statements. The auditors 

did not express an opinion on the effectiveness of FCA’s internal controls; however, they did not identify 

any deficiencies considered to be a material weakness. 

The auditors performed tests of FCA’s compliance with selected provisions of laws and regulations that 

could have a direct and material effect on the financial statements. Although they did not express an 

opinion on compliance with those provisions, they did not identify any instances of noncompliance or 

other matters required to be reported under Government Auditing Standards issued by the Comptroller 

General of the United States or the Office of Management and Budget (OMB) Bulletin No. 15‐02, Audit 

Requirements for Federal Financial Statements. 

The final report was issued on November 14, 2016.   
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

10 

Audits, Inspections, and Evaluations 

Inspection of FCA’s Travel Card Program  

As part of the Agency’s mission, FCA employees are required to complete official government travel. For travel 

expenses, FCA participates in the government‐wide General Services Administration (GSA) SmartPay Travel Card 

Program  and  currently  contracts  with  the  Bureau  of  the  Fiscal  Service  (BFS)  for  travel  administration  and 

services. FCA is included under an issued contract with Citibank for charge cards. FCA uses government travel 

cards for official travel and travel related expenses to include transportation, lodging, meals, and incidentals. 

The objective of the inspection was to determine whether FCA’s oversight of the travel card program 

was effective. We found FCA’s oversight is generally effective. FCA established and implemented 

controls over the travel card program. Opportunities were identified to further improve the travel card 

program: 

 Of the 585 transactions judgmentally sampled, we identified 33 exceptions: 

o 16 transactions by two individuals showing misuse of the travel card. In both instances, FCA 

discovered the misuse during internal reviews and individuals received disciplinary actions 

prior to our review; 

o 6 transactions were identified as erroneous charges. The three individuals involved 

indicated the charges were inaccurate or from potentially stolen card numbers. However, 

they did not file a dispute with the credit card company; and, 

o 11 transactions lacked receipts in the travel system, lacked approvals per Agency policy, or 

the support and reasoning of official travel was not included in the file. 

 Employees had not always made timely payments for travel card expenses; and, 

 Two employees were listed as active FCA cardholders even though they were previously 

separated. 

The Office of Agency Services (OAS) agreed to take two actions in response to the inspection and both 

agreed‐upon actions were closed: 

1. Provide education to cardholders on misuse of the government charge card, proper cash 

advances, delinquencies, potential disciplinary actions, the importance of reviewing statements 

for accuracy of charges, and the dispute process. 

2. Follow up on previous audit recommendations and agreed‐upon actions by implementing, and 

including in the Charge Card Management Plan and/or Operational Handbook for Travel Card 

Operations, a process to: 

a. request and reconcile all active FCA travel cardholders with BFS on a quarterly basis to 

ensure proper closures; and, 

b. provide annual education to travel cardholders on Agency policies and areas of 

improvement found during internal reviews.  

The final report was issued January 31, 2017. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

11 

Audits, Inspections, and Evaluations 

FCA’s Awards Program  

FCA’s OAS has responsibility over the awards program. Different types of awards are granted based on 

the nature of an accomplishment and its impact to the Agency. The objective of this audit was to 

determine if FCA is following policies and procedures and has adequate controls over awards and 

incentives.  

Our review identified opportunities to improve FCA’s awards program. Specifically, we noted 41 of 202 

awards we sampled where the reason for the award appeared to be based on the employee performing 

their overall job duties in an outstanding or superior manner over a sustained period of time. Agency 

policy states that an award is not appropriate for this type of achievement, which is recognized through 

annual performance evaluations. We also noted opportunities to improve controls over award approvals 

and to update policies and procedures.  

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

1. Provide education to supervisors and managers on: 

 Criteria for awards and approval, including requirements that awards are not based on 

performance of overall job responsibilities over a sustained period of time; and, 

 Expectations for justifications in the awards database. 

2. Modify the awards database to address the following: 

 Multiple approvals are not completed by the same employee and approvals are not 

completed by the recipient or recommender; 

 Controls over time‐off award amounts and limits in Agency policy; and 

 Approval routings are appropriate and reflect documented procedures. 

3. Revise policies and procedures to reflect FCA’s current awards program, including: 

 Guidance for award amounts that are not based on tangible, monetary benefits or are 

awarded as time‐off; 

 Appropriate uses for the OAS‐entered function in the awards database; 

 Grossing up awards; 

 Award nomination, recommendation, and approval procedures; 

 Required reporting;  

 Time‐off for new parents; and 

 Types of awards. 

4. Complete reimbursement of the award made to a Schedule C employee during the restricted 

presidential election period. 

The final report was issued February 23, 2017. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

12 

Audits, Inspections, and Evaluations 

Inspection of FCA’s Purchase Card Program  

FCA participates in the General Services Administration’s SmartPay Program to make official purchases 

related to the Agency’s mission. FCA provides purchase cards to employees with a certified need to 

make purchases for their office.  

The objective of this inspection was to determine if FCA’s oversight of the purchase card program was 

effective. We found FCA’s oversight is generally effective; however, we identified some opportunities to 

further improve the purchase card program. Purchase card procedures require cardholders to document 

approval from the approving official (AO) prior to making a purchase, and have their monthly purchase 

activity logs signed by the AO. Although most cardholders obtained prior approval for purchases and 

maintained a monthly purchase activity log with approvals, a few cardholders did not do so. 

In order to improve the purchase card program, the Agency agreed to: 

1. Follow up on previous agreed‐upon actions by reminding current cardholders and approving 

officials of the importance of: 

 Obtaining written prior approval from the approving official for all transactions unless there 

is a standard agency buy approval in place. 

 Maintaining a purchase activity log and submitting it to the approving official for review and 

signature on a monthly basis. 

2. Review and update OAS Directive 6, Charge Card Operating Procedures to ensure guidance is 

current.  

Responding to the inspection recommendations, OAS prepared and corresponded by email with 

cardholders and approving officials. The correspondence reemphasized requirements previously 

identified, including:  1) obtaining written approval from the approving official prior to making purchases 

for non‐standard supplies; and 2) maintaining a monthly purchase activity log submitted for review and 

signature to the approving official. The OAS Directive was also updated, including the current single 

purchase amount limit. Therefore, the agreed‐upon actions were resolved and closed. 

The final report was issued March 7, 2017. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

13 

Audits, Inspections, and Evaluations 

AUDITS AND EVALUATIONS IN PROCESS 

Audit of FCA’s Financial Statements Fiscal Year 2017

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

Congress and OMB audited financial statements 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 2017. The audit 

remained ongoing at the end of this reporting period. For FY 2016, the OIG also contracted with Harper, 

Rains, Knight & Company, P.A. to perform the audit.  

Audit of FCA’s Contracting Activities

In order to fulfill mission requirements, FCA needs to procure and/or contract for certain goods and 

services. However, FCA must ensure its procurement and contracting activities are through appropriate 

methods and procedures that result in efficient and effective use of Agency resources. 

The objective of this audit is to determine whether FCA’s contracting process is effectively administered.  

The audit was initiated in December 2016 and is ongoing as of March 31, 2017. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

14 

Audits, Inspections, and Evaluations 

STATUS OF AGREED‐UPON ACTIONS AND RECOMMENDATIONS

In total, there were 8 agreed‐upon actions added from our five reports issued for the reporting period. 

We had 18 actions open at the beginning of the period to carry over. As of March 31, 2017, 14 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 

3/31/2017 

FCA’s Commissioning 

Program  3/31/2015  3  0  2  1 

FCA’s Risk Project  3/31/2016  4  0  0  4 

FCA’s Position 

Management and Job 

Evaluation Program 

9/23/2016  6  0  5  1 

FCA’s Oversight of Young, 

Beginning, and Small 

Farmer Programs 

9/28/2016  5  0  1  4 

FCA’s Travel Card 

Program  1/31/2017  0  2  2  0 

FCA’s Awards Program  2/23/2017  0  4  0  4 

FCA’s Purchase Card 

Program  3/7/2017  0  2  2  0 

Total  18  8  12  14 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

15 

Audits, Inspections, and Evaluations 

OPEN AGREED‐UPON ACTIONS 

The following charts show open agreed‐upon actions for issued reports as of March 31, 2017: 

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. 

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’s Position Management and Job Evaluation Program 

(Issued 9/23/16)

Agreed‐Upon 

Action Number 5  Document the promotion process at the EMT phase of the OE career ladder. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

16 

Audits, Inspections, and Evaluations 

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 

Action Number 1  and 

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

Agreed‐Upon  ORP incorporate YBS oversight activities and processes in internal control planning and 

Action Number 2  evaluation. 

Agreed‐Upon  ORP develop a plan for addressing recommendations in the Agency’s YBS definitions 

Action Number 3  review. 

Agreed‐Upon  ORP complete an interpretation on YBS disclosure requirements in annual reports to 

Action Number 5  shareholders. 

Agreed‐Upon 

Action Number 1 

FCA’s Awards Program (Issued 2/23/17)

Provide education to supervisors and managers on: 

 Criteria for awards and approval, including requirements that awards are not 

based on performance of overall job responsibilities over a sustained period of 

time; and 

Agreed‐Upon 

Action Number 2 

 Expectations for justifications in the awards database. 

Modify the awards database to address the following: 

•  Multiple approvals are not completed by the same employee and approvals are 

not completed by the recipient or recommender; 

•  Controls over time‐off award amounts and limits in Agency policy; and 

•  Approval routings are appropriate and reflect documented procedures.  

Revise policies and procedures to reflect FCA’s current awards program, including: 

•  Guidance for award amounts that are not based on tangible, monetary benefits 

or are awarded as time‐off; 

Agreed‐Upon 

Action Number 3 

Agreed‐Upon 

Action Number 4 

•  Appropriate uses for the Office of Agency Services‐entered function in the 

awards database; 

•  Grossing up awards; 

•  Award nomination, recommendation, and approval procedures; 

•  Required reporting;  

•  Time‐off for new parents; and 

•  Types of awards. 

Complete reimbursement of the award made to a Schedule C employee during the 

restricted presidential election period.  
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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. 

 Fourth Quarter (July 1 – September 30, 2016) and Fiscal Year 2016 Summary

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

program and staff during the fourth quarter of FY 2016. Eleven FCS institutions responded. The 

OIG issued a report, including a statistical summary of FY 2016 responses, in January 2017 to the 

Chief Examiner and the FCA Board. 

 First Quarter Fiscal Year 2017 (October 1 – December 31, 2016)  

In February 2017, the OIG issued 18 surveys to FCS institutions for feedback on the first quarter 

of FY 2017. Seventeen institutions responded. The OIG provided a report in March 2017 to the 

Chief Examiner and the FCA Board.  

MANAGEMENT ADVISORY REPORTS 

OIG Management Advisory Reports are designed to be a quick mechanism to offer the Agency head and 

management suggestions on ways to strengthen Agency operations. During this reporting period, the 

OIG issued a management advisory relating to contracting practices and FCA policy statements. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

18 

Other Reports 

FCA OIG PEER REVIEW OF FEDERAL ELECTION COMMISSION OIG

The FCA OIG conducted a peer review of the Federal Election Commission (FEC) OIG’s audit program and 

issued a final report on February 23, 2017. The review found that the FEC OIG has a system of quality 

control that is designed to provide the FEC OIG with reasonable assurance that the organization and its 

personnel comply with professional standards and applicable legal and regulatory requirements in all 

material respects for the year ended September 30, 2016. Professional standards for audit organizations 

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

Integrity and Efficiency.  

The FEC OIG received an external peer review rating of “pass,” 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.   

CHARGE CARD RISK ASSESSMENT AND SUBMISSIONS

The Government Charge Card Abuse Prevention Act of 2012 (Charge Card Act) requires the OIG of each 

executive agency to conduct periodic assessments of charge card programs to analyze the risks of illegal, 

improper, or erroneous purchases. As part of adherence to the Charge Card Act and the implementation 

guidance, the OIG conducts an annual risk assessment of FCA’s charge card programs, including the 

purchase and travel card programs and the centrally billed account utilized by FCA. The OIG completed 

its annual risk assessment and issued the Charge Card Risk Assessment to the Agency in March 2017. We 

determined that the overall risk of FCA’s Charge Card Programs was low based on the risk assessment. 

The OIG also issued a letter to the Office of Management and Budget in January 2017 on the Agency’s 

progress in implementing audit recommendations. All recommendations from our previous audits were 

agreed upon by management and were subsequently closed. Therefore, there were no open 

recommendations as of December 2016.  

We will continue to conduct risk assessments and reviews as part of our audit and inspection functions. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

19 

Investigations 

Investigations 

closed

2

Investigations 

opened

5

Hotline 

complaints 

processed

18

Investigations 

pending

3

Investigations 

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

investigations involved unsubstantiated allegations of time and attendance fraud, duty station 

assignments, pay increases, and alleged preselection. The OIG had no reported allegations of whistleblower 

retaliation, and the Agency cooperated in all OIG investigations, providing records in response to OIG 

investigations in a timely manner. The OIG had no investigations involving senior Government employees in 

which allegations of misconduct were substantiated and all closed investigations were reported through 

summary briefings to the public. 

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 nature of the allegation, and other 

factors. The OIG also generally assesses availability of records, credibility, and other factors to determine 

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

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 18 Hotline complaints, four of which involved borrowers. 

One of the Hotline complaints was referred for investigation, and the remaining complaints were 

reviewed, referred to the FCA office responsible for reviewing borrower complaints, or responded to 

and/or administratively closed. Four of the complaints were closed because they involved matters 

outside OIG’s jurisdiction and/or had already been sent to the appropriate agency.  

OIG followed up on borrower complaints referred to the FCA Office of Congressional and Public Affairs, 

and also to the Office of Examination to ensure responses were finalized and complaints resolved as 

appropriate. OIG also continues to review and monitor its Hotline complaints for any trends or patterns 

of allegations that may highlight an underlying issue or development that would merit closer OIG 

attention through an audit, investigation, inspection, or evaluation. OIG’s development of its annual 

audit plan is part of this monitoring process. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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. The OIG also continued to review 

proposed and final regulations and Informational Memoranda issued by the Agency. During this 

reporting period, we reviewed: 

Legislative 

Initiatives

24

Proposed 

Rules

2

Final Rules

4

Informational 

Memoranda

2

The following list includes the significant legislation, proposed rules, final rules, and informational 

memorandum the OIG 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 

17. H.R. 5485, Financial Services and General Government Appropriations Act 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

21 

Legislative and Regulatory Reviews 

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

19. S. 2450, Administrative Leave Act 

20. S. 2976, The DHS Accountability Act 

21. H.R. 5922, Saving Federal Dollars Through Better Use of Government Purchase and Travel Cards 

Act of 2016 

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

23. H.R. 5795/S. 3259, Forensic Science and Standards Act of 2016 

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

Proposed Rules 

1. Circular A‐108, Federal Agency Responsibilities for Review, Reporting, and Publication under the 

Privacy Act, 81 F.R. 69663 (Oct. 7, 2016) 

2. OMB Circular A‐123, Improper Payments Elimination and Recovery Act Reporting (Jan. 18, 2017)  

Final Rules 

1. Farm Credit Administration Organization Updates, 81 Fed. Reg. 69663 (Oct. 7, 2016) 

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

Management; and Disclosure and Reporting, 81 F.R. 71356 (Oct. 17, 2016) 

3. Releasing Information; Availability of Records of the Farm Credit Administration and FOIA Fees, 

12 C.F.R. § 602 (Dec. 9, 2016) 

4. Third Amended and Restated Market Access Agreement – Final Approval, 82 F.R. 5565 (Jan. 18, 

2017) 

Informational Memoranda and Bookletters

1. Military Lending Act (Feb. 6, 2017) 

2. National Oversight Plan for FY 2017 (Sep. 27, 2016) 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

22 

Congressional Interaction 

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

ongoing Agency and OIG activities through correspondence and letter reports. These letter reports and 

correspondence responded to the Committees’ requests for information on various topics, including 

mandatory OIG reporting requirements, OIG websites and hotlines, communication practices involving 

misconduct investigations and administrative leave, nonpublic reports, IG Empowerment Act reporting 

requirements, attempts to interfere with IG independence, information on open recommendations or 

limitations placed on the OIG’s access to documents, information, and Agency employees, and 

whistleblower retaliation allegations. The correspondence and reports were sent to recipients including 

the following committees: 

 Senate Committee on Homeland Security and Governmental Affairs;  

 Senate Committee on the Judiciary; and, 

 House Committee on Oversight and Government Reform. 

The OIG also participated extensively in CIGIE activities, including the CIGIE Legislative Committee, and 

in various workgroups and training activities. Through its CIGIE activities, the OIG provided assistance 

throughout the IG community on crosscutting issues involving legislative and executive changes, 

including comments on the IG Empowerment Act legislation, including recommendations for revisions; 

evaluation of mandatory reporting requirements, and recommendations regarding the impact of the 

Administrative Leave Act. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 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. 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. This reporting period, the IG also served as a co‐

Chair at the 2016 CIGIE Annual Awards Ceremony which recognized the outstanding efforts of IG employees 

government‐wide. 

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 and 

provided recommended changes to guidance being developed relating to IG Empowerment Act reporting 

requirements. She also coordinated a speakers bureau for the CCIG and frequently assists other OIG offices on 

issues raised through interagency meetings and through the CCIG’s listserv. The Deputy IG is further involved 

in the CIGIE Records Administrators Group and 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 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 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 also prepared articles for the Agency’s newsletter that addressed 

insider threats, whistleblower protections under the Whistleblower Protection Enhancement Act, and 

articles for International Fraud Awareness Week that further highlighted fraud awareness.  

The OIG has provided notification and briefings to the Agency on other reporting requirements and 

mandates, including policy and training requirements for Controlled Unclassified Information, 

administrative leave, and electronic email record retention requirements and deadlines. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 March 31, 2017: 

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 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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  10‐12 

5(a)(3)  Prior recommendations not yet implemented  14‐16 

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  28 

5(a)(7)  Summaries of significant reports  8‐12 

5(a)(8)  Management decisions with questioned costs  29 

5(a)(9)  Management decisions on recommendations that funds be put 

to better use  30 

5(a)(10)(A)  Audit reports for which no management decision made  None 

5(a)(10)(B)  Audit reports with comments not received within 60 days  None 

5(a)(10)(C)  Audit reports with unimplemented recommendations  15‐16 

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

5(a)(12)  Significant management decisions with which 

General disagreed 

the Inspector  None 

5(a)(13)  Compliance of Agency financial management system  9 

5(a)(14)(15)  Peer reviews conducted of this OIG  31 

5(a)(16)  Peer reviews conducted by this OIG  32 

5(a)(17)  Statistical tables for investigations and referrals  33 

5(a)(19)  Investigations of Senior Government employee with 

substantiated misconduct  None 

5(a)(20)  Instances of whistleblower retaliation  None 

5(a)(21)  Instances of attempts to interfere with IG independence  None 

5(a)(22)(A)  Closed audits not disclosed to the public  None 

5(a)(22)(B)  Closed investigations involving a senior Government employee  None 

845  National Defense Authorization Act of FY 2008 Citation and 

Requirement   26 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 Financial 

Statement FY 2016 

0  $ 0  $ 0 

FCA’s Compliance with 

FISMA 2016 

0  $ 0  $ 0 

FCA’s Travel Card 

Program 

2  $ 0  $ 0 

FCA’s Award Program  4  $ 0  $ 0 

FCA’s Purchase Card 

Program 

2  $ 0  $ 0 

Total  8  $ 0  $ 0 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

30 

   

Appendix D 

Reports with Recommendations that Funds  

Be Put to Better Use 

   Number of  Number of  Dollar 

Reports  Recommendations  Value 

A.  For which no management decision has been  

     made by the commencement of the reporting  0  0  $ 0 

     period.  

B.  Which were issued during the reporting  0  0  $ 0    period. 

Subtotals (A+B)  0  0  $ 0 

C.  For which a management decision was made  0  0  $ 0       during the reporting period. 

     (i)   dollar value of recommendations that  0  0  $ 0    were agreed to by management 

          ‐ based on proposed management action  0  0  $ 0 

          ‐ based on proposed legislative action  0  0  $ 0 

    (ii)  dollar value of recommendations that  0  0  $ 0    were not agreed to by management 

D.  For which no management decision has been  0  0  $ 0       made by the end of the reporting period. 

E.  For which no management decision was   0  0  $ 0       made within six months of issuance. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

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 OIG  August 2, 2016  Audit   Pass 

Architect of the Capitol OIG  June 26, 2013  Audit   Pass 

U.S. Commodity Futures Trading 

Commission OIG  February 4, 2011  Audit   Pass 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

32 

Appendix F 

Peer Reviews Conducted by this Office 

Function  Peer Review  Peer Review Of  Date of Report   Reviewed  Rating 

Federal Election Commission     February 15, 2017  Audit  Pass  Office of Inspector General 

U.S. International Trade Commission    January 16, 2013  Audit  Pass  Office of Inspector General 

Consumer Product Safety Commission   May 23, 2011  Audit  Pass  Office of Inspector General 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

33 

Appendix G 

Investigative Reports, Referrals, Indictments and Criminal Information 

A. Total number of investigative reports issued during the reporting  2  period 

B. Total number of persons referred to the Department of Justice for  0  criminal prosecution during the reporting period 

C. Total number of persons referred to State and local prosecuting  0  authorities for criminal prosecution during the reporting period 

D. Total number of indictments and criminal informations during the 

reporting period that resulted from any prior referral to  0 

prosecuting authorities 

E. Description of the metrics used for developing the data in this 

statistical table: The FCA OIG has included the above‐referenced 

statistics for the entire reporting period from October 2016 through  0  March 2017 in these statistics. Investigative reports included in this 

table are all those for which a Report of Investigation was issued 

during the reporting time period. 
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

34 

Appendix H 

FCA ORGANIZATIONAL CHART
FCA OIG Semiannual Report to the Congress 

October 1, 2016 ─ March 31, 2017  

https://www.fca.gov/home/inspector.html 

35 

Appendix I 

Glossary of Terms 

Agency  –  Farm Credit Administration 

CIGIE  –  Council of the Inspectors General on Integrity and Efficiency 

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 

OAS  –  Office of Agency Services 

OE  –  Office of Examination 

OIG  –  Office of Inspector General 

OIT  –  Office of Information Technology 

OMB  –  Office of Management and Budget 

PPM  –  Policies and Procedures 

Pub. L.  –  Public Law 

S.  –  Senate 

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