1

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

Glen R. Smith, Board Member

MINUTES OF THE REGULAR MEETING 

OF THE 

FARM CREDIT ADMINISTRATION BOARD

January 11, 2018 

These minutes reflect the business transacted at the January 11, 2018, Regular Meeting of the 

Farm Credit Administration Board (FCA Board) pursuant to the Government in the Sunshine Act, 

5 U.S.C. § 552b, and the regulations of the Farm Credit Administration (FCA) adopted 

thereunder.

The FCA Board meeting was held at the FCA office in McLean, Virginia, beginning at 9:00 a.m. 

and concluding at 9:32 a.m. Members of the Board present were:

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Member

Glen R. Smith, Member

The above named constitute the full Board.

Others present included Charles Rawls, General Counsel; Dale Aultman, Secretary to the 

Board; staff of the FCA; and one member of the general public. (A list of staff attendees is 

attached as Exhibit A.) 

The Secretary read a statement that announced the meeting would be conducted according to 

the requirements of the Government in the Sunshine Act. 

Board Chairman Tonsager reviewed the published Agenda. (A copy of the Public 

Announcement publishing the Agenda for the meeting is attached as Exhibit B.)

Mr. Hall moved to adopt the Agenda as published. 

Mr. Smith seconded the motion.

There being no further discussion, Board Chairman Tonsager called the question.

The Secretary polled the Board Members and the motion carried unanimously.

Mr. Smith noted that the Agenda did include portions of the meeting that should be closed to the 

public as permitted by the Government in the Sunshine Act and therefore moved that the 

meeting be closed at that point. 
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Mr. Hall seconded the motion.

There being no further discussion, Board Chairman Tonsager called the question.

The Secretary polled the Board Members and the motion carried unanimously.

OPEN SESSION

Approval of Minutes

Minutes for December 14, 2017 

(BM-11-JAN-18-01) 

Mr. Hall moved to approve the minutes for the December 14, 2017, FCA Regular Board Meeting. 

Mr. Smith seconded the motion.

There being no further discussion, Board Chairman Tonsager called the question.

The Secretary polled the Board Members and the motion carried unanimously. (BM-11-JAN18-01)

(A copy of the official “Board Action Item” is attached as Exhibit C.)

Report

Auditor’s Report on FCA FY 2017/2016 Financial Statements

Tori Kaufman, in the office of the Inspector General, and auditor Matthew Farage from 

Harper, Rains, Knight, and Company presented the Auditor’s Report on FCA FY 

2017/2016 Financial Statements.

Board Chairman Tonsager asked if there were any questions or further discussion from the 

Board.

There were no further questions or discussion.

(A copy of the PowerPoint presentation is attached as Exhibit D.)

CLOSED SESSION

Board Chairman Tonsager noted that this was a Closed Session and ensured that nonessential 

staff were not in the room so the Board could meet in Executive Closed Session with the Auditor.

Board Chairman Tonsager convened the closed session of the meeting at 9:14 a.m. and 

instructed the Secretary to activate the electronic recording device so that the proceedings of 

the closed session were properly recorded as required by the Government in the Sunshine Act. 

Board Chairman Tonsager then instructed the General Counsel to furnish the Secretary with 

a certification, pursuant to 5 U.S.C. § 552b(f), that the portions of the meeting held in closed 

session may be properly closed to the public. (A copy of the Certification is attached hereto as 

Exhibit E.) 
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Members of the Board present were:

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

Glen R. Smith, Board Member

Others present included Dale Aultman, Secretary to the Board; and Charles Rawls, General 

Counsel. (A list of staff attendees is attached as Exhibit A).

Executive Meeting with Auditor

The Board met in executive session with the Auditor from Harper, Rains, Knight, and Company. 

Board Chairman Tonsager asked if there were any questions or further discussion from the 

Board. 

There were no further questions or discussion.

ADJOURNMENT

There being no further business to come before the Board, Board Chairman Tonsager indicated 

he would entertain a motion to adjourn the meeting.

Mr. Smith moved that the meeting be adjourned.

Mr. Hall seconded the motion.

Board Chairman Tonsager called the question.

The Secretary polled the Board Members and the motion carried unanimously.

The meeting adjourned at 9:32 a.m.
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NOTATIONAL VOTE ACTIONS

There were four notational vote actions approved by the FCA Board from December 15, 2017, 

through January 10, 2018 as follows:

Item 

Number

Action Date Voting 

Results

Subject

NV 17-31 12/19/2017 Approved 2018 Compensation and Benefits Program

NV 17-32 12/21/2017 Approved Compeer Financial, ACA Investment in Healthcare Center in rural 

South Dakota, subject to certain conditions

NV 17-33 12/21/2017 Approved AgFirst FCB Redeem the Stock of two Other Financing Institutions

NV 18-01 01/04/2018 Approved Inflation Adjustment to Civil Money Penalties Regulation

The undersigned hereby certify that the foregoing minutes are the official minutes of the Regular 

Meeting of the Farm Credit Administration Board held on January 11, 2018.

__________/s/____________

Dallas P. Tonsager

Board Chairman and Chief Executive Officer

________/s/_____________

Dale L. Aultman

Secretary to the Board

Approved: _February 8, 2018_
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Exhibit A 

STAFF PRESENT AT THE 

FCA REGULAR BOARD MEETING

January 11, 2018 

Dallas P. Tonsager, Chairman and Chief Executive Officer

Jeffery S. Hall, Board Member

Glen R. Smith, Board Member

OFFICE OPEN 

SESSION 

CLOSED

EXECUTIVE

SESSION

Office of the Board

Aultman, Dale X X

Batta, Todd X

Kramp, Kevin X X

Stokke, Mike X X

Corey, Kathryn X

Buccolo, Debra X

Calhoun, Gaye X

EEOI

Burlew, Thais X

COO

Hoffman, William X

OIT

Golley, Jerald X

OCPA

Delancey, Toni X

Meaux, Willy X

OSMO

Rea, Laurie X

OGC

Rawls, Charles X X

Strickland, Joy X

Donner, Mary Alice X

Grahn, David X

OE

Coleman, Robert X

Paulsen, Roger X

OIG

Laguarda, Wendy X X

Kaufman, Tori X

AUDITOR

Farage, Matthew (Harper, Rains, 

Knight and Co.) X X 

ORP

Mardock, Barry X

OCFO

Smith, Stephen X

Gandy, Doug X

Soares, Ily X
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OFFICE OPEN 

SESSION 

CLOSED

EXECUTIVE

SESSION

OAS

Bell, Vonda X

GENERAL PUBLIC 1
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Exhibit B 

Farm Credit Administration 1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

PUBLIC ANNOUNCEMENT OF

MEETING SUBJECT TO THE GOVERNMENT IN THE SUNSHINE ACT

Farm Credit Administration Board

Regular Meeting 

January 11, 2018 

Summary: Notice is hereby given, pursuant to the Government in the Sunshine Act (5 U.S.C. Sec. 552b(e) 

(1)), of the forthcoming regular meeting of the Farm Credit Administration Board.

Date and Time: The regular meeting of the Board will be held January 11, 2018. The meeting is scheduled 

to be held at the office of the Farm Credit Administration in McLean, Virginia, from 9:00 a.m. until such time 

as the Board may conclude its business.

Address: Farm Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102-5090. Submit 

attendance requests via e-mail to VisitorRequest@FCA.gov. See SUPPLEMENTARY INFORMATION for further 

information about attendance requests.

For Further Information Contact: Dale L. Aultman, Secretary to the Farm Credit Administration Board 

(703) 883-4009. TTY is (703) 883-4056.

Supplementary Information: Parts of this meeting of the Board will be open to the public (limited space 

available), and parts will be closed to the public. Please send an e-mail to VisitorRequest@FCA.gov at least 

24 hours before the meeting. In your e-mail include: name, postal address, entity you are representing (if 

applicable), and telephone number. You will receive an e-mail confirmation from us. Please be prepared to 

show a photo identification when you arrive. If you need assistance for accessibility reasons, or if you have 

any questions, contact Dale L. Aultman, Secretary to the Farm Credit Administration Board, at (703) 883-

4009. The matters to be considered at the meeting are:

OPEN SESSION

Approval of Minutes

1 December 14, 2017

Report 

2 Auditor’s Report on FCA FY 2017/2016 Financial Statements 

CLOSED SESSION

3 Executive Meeting with Auditors1

______January 2, 2018______

Date

___________/s/___________________

Dale L. Aultman

Secretary to the Board

1 Session Closed-Exempt pursuant to 5 U.S.C. Section 552b(c)(8) and (9).
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Exhibit C

Farm Credit Administration

BOARD ACTION ITEM

1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

FCA BOARD ACTION ON

Minutes for December 14, 2017 Regular Board Meeting

BM-11-JAN-18-01

Effective Date: January 11, 2018 

Effect on Previous Action: None

THE FCA BOARD HEREBY:

Approves the minutes for December 14, 2017, Regular Board Meeting as submitted.

DATED THIS 11th DAY OF JANUARY 2018 

BY ORDER OF THE BOARD

___________/s/___________________

Dale L. Aultman

Secretary to the Board
Farm Credit 

Administration

Fiscal Year 2017 

Financial Statements 

Audit

Exhibit D
Opinion on FCA’s FY 2017 Financial Statements

Unmodified Opinion

Report on FCA’s Internal Controls over Financial Reporting

No opinion issued

No significant deficiencies or material weaknesses identified

Report on FCA’s Compliance and Other Matters

No opinion issued

No instances of non-compliance identified
Key Audit Areas:

• Payroll Expenditures (82% of total expenditures)

• Investments (90% of total assets)

• Assessments

Methodology:

• Reliance on controls at service providers

• Testing of controls in place at FCA

• Interim and yearend substantive testing
Financial Statement Analysis: 

• Balance Sheet –Line Items were materially consistent

with prior year with the exception of Fund balance with

Treasury, Investments, and Deferred Revenue.

BALANCE SHEETS

For the Years Ended September 30, 2017 and 2016

(In Dollars)

2017 2016

Fund Balance with Treasury (Note 2) $1,457,378 $546,292

Investments (Note 3) 32,893,400 29,756,481

Deferred Revenue 5,733,890 4,676,787
Financial Statement Analysis – Cont’d: 

• Balance Sheet – Cont’d

• Fund balance with Treasury shows a significant increase from

FY2016 to FY2017. Increase is represented by FY2018 assessments

received from a number of FCS institutions in FY2017 (deferred

revenue). These prepaid assessments were received after the cutoff

time for investing, resulting in an excess of cash on hand.

• Investments increase is due to increases in both carryover from

prior years and continued growth of investment funds.

• Deferred revenue consists of collections of Fiscal Year 2018

assessments received before September 30, 2017. The increase

occurred predominantly because of one of the larger

institutions issued payment of assessment in September.
Financial Statement Analysis – Cont’d: 

• Statement of Net Cost – Net Cost of Operations decreased $5 million from FY2016 to FY2017 due to earned revenue increasing more than gross

cost.
Financial Statement Analysis – Cont’d: 

• Statement of Net Cost – cont’d

• Earned Revenues increased $8 million due to increases in

assessments of the FCS and interest earned on investments.

• Gross Costs increased $3 million due to increases in number of staff,

employee compensation, and information technology investments.
Financial Statement Analysis – Cont’d: 

• Statement of Changes in Net Position – Net Position increased

in FY2017 due to decrease in Net Cost of Operations and decrease in

imputed financing sources (specifically federal employee benefits).
Financial Statement Analysis – Cont’d: 

• Statement of Budgetary Resources – Only significant change in

FY2017 was the increase in Obligations Incurred, which reconciles to

the increase in Gross Costs discussed on the previous slide.

STATEMENT OF BUDGETARY RESOURCES

For the Years Ended September 30, 2017 and 2016

(In Dollars)

2017 2016

Status of 

budgetary 

resources

New obligations and upward adjustments (total) $66,843,478 $63,217,157
~ Thank You ~

Inspector General and Staff

&

Chief Financial Officer and Staff
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Exhibit E 

Farm Credit Administration 1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

CERTIFICATE OF CLOSED MEETING

The General Counsel, in accordance with the Government in the Sunshine Act, 5 U.S.C. 

§ 552b(f)(1), hereby certifies that the Farm Credit Administration Board regular meeting of

January 11, 2018, was properly closed to the public on the basis of the exemption set forth

below:

Information related solely to the internal practices of an Agency – 5 U.S.C.

§ 552b(c)(2).

January 11, 2018

Charles R. Rawls Date

General Counsel

/s/