FARM CREDIT ADMINISTRATION

OFFICE OF INSPECTOR GENERAL

SEMIANNUAL REPORT TO CONGRESS

OCTOBER 1, 2022 –MARCH 31, 2023

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Semiannual Report to Congress

October 1, 2022 – March 31, 2023 

Farm Credit Administration | Office of Inspector General

A MESSAGE FROM THE INSPECTOR GENERAL

I am pleased to submit our Semiannual Report to Congress, summarizing the activities 

and accomplishments of the Farm Credit Administration (FCA or Agency) Office of 

Inspector General (OIG) for October 1, 2022, through March 31, 2022. 

These six months our office diligently observed the responsibilities assigned to us 

under the Inspector General Act. Notably, we concluded an audit of the Agency’s 

processes for examination staffing, which addressed the recruiting, scheduling, 

rotating, and retaining of examiners. FCA examiners play a critical role in ensuring the 

Farm Credit System remains a dependable source of credit for agriculture and rural 

America, and I trust that the findings and recommendations included in our report will aid the Agency in 

meeting its vital mission. This reporting period also saw our office carry out an annually required review 

of FCA’s compliance with improper payment reporting requirements, monitor a contracted audit of the 

Agency’s financial statements, and conduct an external peer review of the United States Capitol Police 

OIG’s audit function.

We continued to exercise diligence in our efforts to provide comprehensive oversight of FCA programs 

and operations. We issued our annual statement on the top management and performance challenges 

facing the Agency, published a report on our surveys of Farm Credit System institutions regarding FCA’s 

examination function, and responded conscientiously to complaints and information submitted through 

the OIG hotline. We also kept leadership informed of issues facing the Agency, including by presenting 

our work at the February FCA Board meeting. 

The reporting period also saw our office fulfill our statutory responsibility to participate in the plans, 

programs, and projects of the Council of the Inspectors General on Integrity and Efficiency (CIGIE). OIG 

staff lent their talents and expertise to the Inspector General community through various CIGIE 

committees and working groups. With my recent election to another two-year term as Chair of the CIGIE 

Inspection and Evaluation Committee, I hope that we might continue to have a meaningful impact on 

oversight governmentwide.

Finally, since the cooperation of FCA staff and leadership is indispensable to our oversight mission, I 

would like, once again, to express my gratitude for the courtesy and professionalism extended to our 

office during these six months.

Wendy R. Laguarda

Inspector General
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Semiannual Report to Congress 

October 1, 2022 – March 31, 2023 

Farm Credit Administration | Office of Inspector General 

A Message from the Inspector General ................................................................................................................................ i

Acronyms and Abbreviations .................................................................................................................................................. iii

Background ..................................................................................................................................................................................... 1

Strategic Plan ................................................................................................................................................................................. 3

Audits, Inspections, and Evaluations ..................................................................................................................................... 4

Investigations ................................................................................................................................................................................. 8

Other Reports and Reviews ...................................................................................................................................................... 9

Outreach, Collaboration, and Other Initiatives ............................................................................................................... 11

Appendix I: Peer Reviews ........................................................................................................................................................ 13

Appendix II: Reports Issued ................................................................................................................................................... 15

Appendix III: Open Recommendations ............................................................................................................................. 16

Index of Reporting Requirements ....................................................................................................................................... 17

TABLE OF CONTENTS
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Semiannual Report to Congress

October 1, 2022 – March 31, 2023 

Farm Credit Administration | Office of Inspector General

ACRONYMS AND ABBREVIATIONS

CIGIE Council of the Inspectors General on Integrity and Efficiency

Farm Credit Act Farm Credit Act of 1971, as amended

Farmer Mac Federal Agricultural Mortgage Corporation

FCA (or Agency) Farm Credit Administration

HRK Harper, Rains, Knight & Company, P.A.

I&E Inspection and Evaluation

IG Inspector General

IG Act Inspector General Act of 1978, as amended

OE Office of Examination

OIG Office of Inspector General

OMB U.S. Office of Management and Budget

PIIA Payment Integrity Information Act of 2019

Pub. L. Public Law

System Farm Credit System

U.S. United States

U.S.C. United States Code
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Semiannual Report to Congress

October 1, 2022 – March 31, 2023 

Farm Credit Administration | Office of Inspector General

BACKGROUND

The Farm Credit System

First established in 1916, the Farm Credit System (System) is a nationwide network of borrower-owned 

cooperative financial institutions and service organizations. A government-sponsored enterprise, the 

System is designed to better the income and well-being of farmers, ranchers, and rural America by 

providing a safe and reliable source of credit and related financial services.

As of April 1, 2023, the System consisted of three farm credit banks, one agricultural credit bank, one 

federal land credit association and 58 agricultural credit associations that primarily make loans to 

agriculture in all 50 states and Puerto Rico, as well as six service corporations that provide administrative, 

technology-related, and other support services to certain System entities and eligible borrowers.

Created in 1988, the Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary 

market for agricultural real estate mortgage loans, rural housing loans, and rural cooperative loans. A 

stockholder-owned, federally chartered corporation, Farmer Mac is an institution of the System, but is 

not liable for any debt or obligation of any other System institution.

The Farm Credit Administration

The Farm Credit Administration (FCA or Agency) is the independent federal 

agency responsible for ensuring that the System remains a dependable source 

of credit for agriculture and rural America. Authorized by the Farm Credit Act of 

1971, as amended1 (Farm Credit Act), FCA ensures the safety and soundness of 

System institutions by issuing policies and regulations and by regularly examining System institutions.

FCA has five offices and over 300 employees.

FCA is overseen by a three-person board, members of which are appointed by the President, with the 

advice and consent of the Senate. The Chairman—who is designated by the President and serves in that 

role until the end of the Chairman’s term—also serves as the Agency’s Chief Executive Officer. During the 

reporting period, the Board had three members: Vincent G. Logan, Jeffery S. Hall, and Glen R. Smith. 

Mr. Logan succeeded Mr. Smith as Board Chairman on October 21, 2022, by a designation by President 

Biden. 

The Office of Inspector General

Established in January 1989, the Office of Inspector General (OIG) is charged with the task of providing 

independent and objective oversight of FCA programs and operations. It carries out this responsibility as 

authorized by and in accordance with the Inspector General Act of 1978, as amended2 (IG Act), by 

conducting and supervising audits, inspections, evaluations, and investigations; promoting economy and 

efficiency; preventing and detecting fraud, waste, and abuse; and keeping the FCA Board and Congress

fully and currently informed about problems and deficiencies related to FCA.

1 12 U.S.C. § 2001 et seq.

2 5 U.S.C. §§ 401–424. 
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Semiannual Report to Congress

October 1, 2022 – March 31, 2023 

Farm Credit Administration | Office of Inspector General

Located within FCA, the OIG operates independently—outside the direction of 

Agency leadership. While the Inspector General (IG) is appointed by and serves 

under the general supervision of the FCA Board, neither the Board nor any other 

Agency official may prevent or prohibit the IG from carrying out an oversight 

activity that the IG determines to be necessary or appropriate. The IG also exercises discretion in OIG 

employment and contracting decisions, further safeguarding the office’s independent status. This 

independence is necessary to ensure that OIG products meet the highest standards of objectivity and 

credibility.

The OIG is led by Wendy R. Laguarda, who has served as the IG since August 2017. Reporting to the IG 

are the Assistant Inspector General for Audits, Inspections, and Evaluations, the Investigator, and the 

Counsel to the Inspector General. The Assistant Inspector General supervises the audit staff and oversees 

the audit, inspection, and evaluation functions.

The Council of the Inspectors General on Integrity and Efficiency

The FCA IG also serves as a member of the Council of the Inspectors General on Integrity and Efficiency 

(CIGIE). Composed of the federal inspectors general and certain other federal officials,

CIGIE was established to address cross-agency issues of integrity, economy, and 

effectiveness and to improve the professionalism and effectiveness of OIG personnel. 

OIG staff regularly participate on CIGIE committees and initiatives, as discussed in this 

report. 
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Semiannual Report to Congress

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Farm Credit Administration | Office of Inspector General

STRATEGIC PLAN

In September 2019, the OIG adopted a five-year strategic plan for fiscal 

years 2020 to 2024. Revised in 2021, the plan details the vision, mission, 

values, goals, and objectives of the OIG in carrying out its responsibilities 

under the IG Act.

The OIG’s vision, mission, values, and goals are outlined below. 

Vision

Harvesting Change

Mission

To provide independent oversight to promote economy, efficiency, and 

effectiveness, and prevent and detect fraud, waste, and abuse in Farm 

Credit Administration programs and operations

Values

Objectivity, Integrity, Relevance, and Respect

Goals

1) Promote Economy and Efficiency

2) Prevent and Detect Fraud, Waste, and Abuse

3) Strengthen Internal and External Relationships 
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Semiannual Report to Congress

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Farm Credit Administration | Office of Inspector General

AUDITS, INSPECTIONS, AND EVALUATIONS

The OIG regularly performs audits, inspections, and evaluations of FCA programs and operations. In so 

doing, OIG personnel seek to provide timely, credible, and relevant information to Agency leadership, 

Congress, other stakeholders, and the general public. FCA OIG audits are performed in accordance with

the Government Auditing Standards issued by the 

U.S. Government Accountability Office, while inspections 

and evaluations adhere to the CIGIE Quality Standards for 

Inspection and Evaluation. 

In planning its audits, inspections, and evaluations, the OIG 

employs a risk-based approach that accounts for prior 

oversight work, the control environment, input from the FCA 

Board and senior management, statutory requirements, and 

resources. For more information, and to learn about future 

OIG work, please see the audit, inspection, and evaluation 

plan for fiscal years 2023 and 2024. 

Reports issued may be found on the OIG website within three business days of issuance to the FCA Board. 

To receive a notification when a new report is published, please subscribe to the OIG mailing list. Reports 

are also posted on Oversight.gov, a consolidated repository for the oversight work of federal inspectors 

general. Oversight.gov allows users to sort, search, 

and filter the site’s database to find reports of 

interest. Users can receive notifications when new 

reports are added to Oversight.gov by following CIGIE’s Twitter account, @OversightGov. 

Summaries of Reports Issued

The OIG issued three reports and made eight recommendations for corrective action during the reporting 

period. The reports are summarized below.

Farm Credit Administration’s Compliance with the 

Payment Integrity Information Act of 2019 for Fiscal Year 2022

I-22-01

Enacted in March 2020, the Payment Integrity Information Act of 2019 (PIIA) aimed to improve 

governmentwide efforts to identify and reduce improper payments, setting forth various reporting 

requirements for federal agencies. PIIA requires OIGs to determine annually whether their respective 

agencies complied with PIIA requirements, in accordance with guidance issued by the U.S. Office of 

Management and Budget (OMB) and CIGIE.

This inspection determined that FCA complied with PIIA requirements applicable to the Agency for fiscal 

year 2022, and based on the limited review performed, that the Agency’s efforts to prevent and reduce 

improper payments appeared to be reasonable. FCA published on its website a Performance and 

Accountability Report, which included the Agency’s annual financial statements and required payment 

integrity information. The Agency also reported payment integrity data to PaymentAccuracy.gov. Because 

the Agency conducted improper payment risk assessments in May 2021 and determined that all of its 
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Semiannual Report to Congress

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Farm Credit Administration | Office of Inspector General

programs and activities were low risk and not susceptible to significant improper payments, FCA is not 

required to complete risk assessments again until fiscal year 2024. Other PIIA reporting requirements 

were not applicable to the Agency in fiscal year 2022. 

The OIG issued the inspection report on February 22, 2023.

Farm Credit Administration’s Examiner Staffing Program

A-22-03 

Within FCA, the Office of Examination (OE) is responsible for examining and supervising System 

institutions in accordance with Farm Credit Act and applicable regulations. Examiners serve as an essential 

link between the Agency and these institutions, providing ongoing oversight, examinations, meetings 

with boards and management, and reports and correspondence. Accordingly, it is important that OE, 

which accounts for approximately half of all Agency personnel, maintain a trained and developed talent 

pool.

The objective of this audit was to evaluate FCA’s examination staffing processes. Among other things, the 

OIG reviewed recruiting materials, budgeting information and time code reports, examination staffing 

and scheduling tools, and recent personnel actions. The OIG also surveyed certain examination staff 

regarding FCA’s recruiting process and Agency retention efforts. 

The OIG determined that FCA devoted resources to, and appropriately budgeted for, examination staff 

recruiting efforts. OE had developed two recruiting programs for entry-level examiners and had tracked 

staff time and other financial resources allocated to recruiting activity. However, the OIG noted 

opportunities for the Agency to improve collection and analysis of recruiting data, as the Agency had not 

established structured ways to analyze its recruiting efforts. The OIG also identified concerns with FCA’s 

collection and storage of certain legacy recruiting data.

With respect to examination staffing, the OIG found that the Agency utilized various tools and datasets 

to plan examination assignments. The OIG also determined that OE had developed a staffing contingency 

plan to ensure preparedness and analyze potential staffing needs in times of heightened risks and adverse 

conditions. However, the OIG found opportunities for OE to improve documentation of its examiner 

scheduling processes. The OIG also noted concerns with the collection and maintenance of certain 

attrition data. 

The audit report was issued on January 30, 2023. The OIG made seven recommendations, which focused 

on improving examiner recruiting efforts, documenting examiner rotation policies and procedures, and 

strengthening controls for the collection and storage of data on potential and former employees. 

Management agreed with all recommendations.

Farm Credit Administration’s Financial Statements

Fiscal Year 2022

A-22-FS

FCA is required each year to submit audited financial statements to Congress and OMB. These financial 

statements must be audited in accordance with the Government Auditing Standards by the IG or an 

independent external auditor. For fiscal year 2022, the OIG engaged the independent public accounting 
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Farm Credit Administration | Office of Inspector General

firm Harper, Rains, Knight & Company, P.A. (HRK) to audit FCA’s financial statements. The OIG monitored 

the work of HRK.

HRK concluded the audit in November 2022, issuing an unmodified opinion signifying that the financial 

statements presented fairly, in all material respects, FCA’s financial position as of September 30, 2022 and 

2021, and its net cost of operations, changes in net position, and budgetary resources for the fiscal years 

then ended, in accordance with generally accepted accounting principles.

HRK considered FCA’s internal control relevant to the financial statement audit as a basis for designing 

audit procedures that are appropriate for the purpose of expressing an opinion on the financial 

statements. The auditors did not express an opinion on the effectiveness of internal control over financial 

reporting; however, they did not identify any deficiencies that HRK considered to be significant 

deficiencies or material weaknesses. HRK noted an internal control deficiency over payroll operating 

expenses regarding re-hired annuitants. This deficiency, which HRK determined did not constitute a 

significant deficiency or material weakness, was communicated in a Management Letter dated November 

10, 2022. The Management Letter included one recommendation, with which the Agency agreed.

Additionally, HRK performed tests of FCA’s compliance with selected provisions of laws, regulations, and

contracts that would have a direct and material effect on the financial statements. While HRK did not 

express an opinion on compliance with those provisions, they did not identify any instances of 

noncompliance required to be reported under the Government Auditing Standards or relevant OMB 

guidance.

The OIG’s monitoring and review of HRK disclosed no instances where HRK did not comply, in all material 

respects, with the Government Auditing Standards. The OIG issued the audit report on November 10, 

2022. 

Recommendations Made During the Reporting Period

Table 1 shows all recommendations for corrective action made during the reporting period.

Table 1 

Report Recommendation

Farm Credit Administration’s 

Examiner Staffing Program

1 The Office of Inspector General recommends the Office of Examination coordinate 

with applicable offices to gather information on how applicants found out about the 

FCA announcement through the application process.

2 The Office of Inspector General recommends the Office of Examination evaluate the 

implementation of a project code specific to its recruiting to be able to more efficiently 

track resources utilized during recruiting efforts and to better analyze the costs and 

benefits of its recruiting efforts.

3 The Office of Inspector General recommends the Office of Examination document and 

implement recruiting processes in the recruiting handbook or other documented 

policies and procedures

4 The Office of Inspector General recommends the Office of Examination document the 

plans to remove legacy quick response code recruiting data and implement immediate 

steps to reduce access to the information until the data is removed.

5 The Office of Inspector General recommends the Office of Examination document the 

examiner rotation policies.
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Semiannual Report to Congress

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Farm Credit Administration | Office of Inspector General

Report Recommendation

Farm Credit Administration’s 

Examiner Staffing Program

(continued)

6 The Office of Inspector General recommends the Office of Examination update 

Directive 48, Scheduling, to reflect current processes.

7 The Office of Inspector General recommends the Office of Examination document 

what information is collected, stored, and maintained on former employees and 

consider privacy, security, and records retention requirements in coordination with 

other applicable offices.

Farm Credit Administration’s 

Financial Statements

Fiscal Year 2022

1 Harper, Rains, Knight & Company recommends that the Farm Credit Administration 

develop and implement policies and procedures for updating annuity offsets for rehired annuitant cost-of-living increases and annually obtaining annuity information 

directly from the Office of Personnel Management.

In Progress

Below are the audits, inspections, and evaluations in progress at the end of the reporting period.

Farm Credit Administration’s Office of Data Analytics and Economics

In 2019, the FCA Board created the Office of Data Analytics and Economics and named a Chief Data 

Officer to serve as a steward for Agency data and as a provider of information for objective, evidencebased decision making across the Agency. Over the past four years, FCA has invested significant resources 

in the growth and development of this office to support FCA in achieving its strategic mission. The 

objective of this audit is to evaluate the office’s organizational structure, strategic objectives, performance 

goals, and responsibilities in achieving the Agency’s mission.

Farm Credit Administration’s Processes for Merger Activity in the Farm Credit System

Under the Farm Credit Act, FCA is authorized to approve mergers between System institutions. Review of 

merger activity involves multiple Agency offices, and recent years included increased merger activity

within the System. This inspection’s objective is to evaluate FCA’s process to review, and take action on, 

merger activity in the System.

The Farm Credit Administration’s Compliance with the

Federal Information Security Modernization Act for Fiscal Year 2023 

The Federal Information Security Modernization Act of 2014 requires that the OIG annually evaluate FCA’s 

information security program and practices to determine their effectiveness according to metrics 

identified by the U.S. Department of Homeland Security. The OIG has contracted with an independent 

public accounting firm to conduct this audit for fiscal year 2023. The OIG is monitoring the work of the 

firm. 
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Semiannual Report to Congress

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Farm Credit Administration | Office of Inspector General

INVESTIGATIONS

The OIG has broad discretion to carry out investigations related to FCA programs and operations that the 

IG determines to be necessary or appropriate. The range of matters falling within the OIG’s investigative 

purview is expansive, encompassing potential violations of law, rules, or regulations; mismanagement; 

abuses of authority; and more. Investigative activities may be initiated upon allegations or referrals 

received from a variety of sources, including, but not limited to, FCA employees or contractors, 

congressional committees, other agencies, System institutions, or members of the public. The OIG may 

also investigate potential fraud, waste, abuse, and mismanagement identified through OIG audits, 

inspections, and evaluations. 

In exercising its investigative authorities, the OIG works to develop products that are timely, clear, and 

credible, and to guard the identities of those who provide information to the OIG or are the subject of 

complaints. All investigations are carried out in accordance with the CIGIE Quality Standards for 

Investigations. 

Summaries of Investigations

The OIG did not conclude any investigations during the reporting period. Closing memoranda for 

investigations are generally available on the OIG’s online reports page. Table 2 summarizes major 

investigative activity during the reporting period.

Table 2 

Metric Number

Investigative reports issued3 0

Persons referred to the U.S. Department of Justice for criminal prosecution 0

Persons referred to state and local prosecuting authorities for criminal prosecution 0

Indictments and criminal informations that resulted from any prior referral to prosecuting authorities 0

Complaint Activity

FCA employees and others may confidentially report potential fraud, waste, abuse, or mismanagement 

to the OIG in-person or via telephone, email, or mail. Table 3 shows the disposition of complaints received 

during the reporting period or carried over from a previous reporting period.

Table 3 

Action Taken Number

Closed after investigation 0

Closed after review with no further specific investigative action 4

Referred to an FCA program manager 1

Referred to other federal, state, or local agency or authority 0

Under review at the end of the reporting period4 5

Total 10

3 This metric does not include memoranda memorializing the closure or referral of complaints.

4 Includes all open complaints, including those under investigation at the end of the reporting period. 
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Semiannual Report to Congress

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Farm Credit Administration | Office of Inspector General

OTHER REPORTS AND REVIEWS

The OIG also conducts reviews that do not fit the description of an audit, inspection, evaluation, or 

investigation. These projects are typically undertaken in accordance with a statutory requirement, for 

quality assurance purposes, or to otherwise provide comprehensive oversight of FCA programs and 

operations. Below are summaries of such reviews that were completed during the reporting period.

Survey of Farm Credit System Institutions

Regarding the Agency’s Examination Function

Each quarter, the OIG surveys recently examined System institutions on the quality and consistency of 

FCA’s examination function. Survey questions seek the institution’s views on several matters, ranging from 

the appropriateness of the examination’s scope and the examiners’ conduct to the helpfulness of any 

recommendations or required actions. The survey employs a numerical rating system and allows for 

institutions to provide narrative responses as well as to call the OIG with any concerns. The OIG collects, 

aggregates, and anonymizes survey responses for distribution semiannually to the FCA Board and Chief 

Examiner.

The OIG issued a survey report on February 2, 2023, detailing responses from System institutions 

examined during the third and fourth quarters of fiscal year 2022 and providing cumulative survey data 

for the entirety of fiscal year 2022. Prior survey reports are available on the OIG’s online reports page. 

Charge Card Letter

Fiscal Year 2022

Pursuant to the Government Charge Card Abuse Prevention Act of 20125 and implementing OMB 

guidance, the OIG conducts periodic risk assessments of FCA charge card programs to analyze the risk of 

illegal, improper, or erroneous purchases. The OIG annually reports to OMB on the Agency’s progress in 

implementing any charge card-related recommendations.

On December 28, 2022, the OIG issued a letter to OMB reporting that there were no charge card-related 

recommendations initiated, closed, or open during fiscal year 2022. 

Management Challenges

As required by the Reports Consolidation Act of 2002,6 the OIG annually prepares 

a statement summarizing what the IG considers to be the most serious 

management and performance challenges facing FCA. The statement also briefly 

assesses the Agency’s progress in meeting those challenges and highlights 

relevant OIG oversight work.

For fiscal year 2022, the OIG highlighted four challenges facing the Agency:

• Regulating and Supervising a Complex Farm Credit System

• Operating with Less than an Ideal Board Member Composition

5 41 U.S.C. § 1909(d).

6 31 U.S.C. § 3516(d).
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Farm Credit Administration | Office of Inspector General

• Continuous Monitoring and Contingency Planning in FCA’s Information Technology Security 

Program

• Recruiting and Retaining Talented Employees

The report was issued to the FCA Board on October 11, 2022. FCA management’s response can be found 

in the Agency’s Performance and Accountability Report for Fiscal Year 2022. 
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Farm Credit Administration | Office of Inspector General

OUTREACH, COLLABORATION, AND OTHER 

INITIATIVES

FCA Employees

The cooperation of FCA employees is essential to all aspects of OIG oversight. Accordingly, the OIG has 

several ongoing initiatives geared toward educating FCA employees on the OIG’s mission and authorities. 

These include a quarterly intra-agency newsletter, the dIG, which spotlights the office’s functions and 

provides recent examples of OIG oversight products government-wide. The OIG also participates in 

orientation training for new FCA employees and distributes posters to promote awareness of the OIG 

hotline. 

Congress

In the interest of fulfilling its responsibility to keep Congress fully and currently informed about problems 

and deficiencies relating to FCA programs and operations, the OIG endeavors to respond expeditiously 

to all congressional requests and to periodically brief oversight committees on recent OIG activity.

Inspector General Community

The OIG is active in the IG community, with staff lending their efforts and expertise to the work of various 

CIGIE committees, working groups, and initiatives.

Throughout the reporting period, IG Laguarda served as Chair of the CIGIE Inspection and Evaluation 

(I&E) Committee. One of CIGIE’s standing committees, the I&E Committee maintains professional 

standards for inspections and evaluations, heads the development of protocols for reviewing crossagency management issues, and oversees the I&E peer review process. Under the purview of this 

committee, the OIG’s Assistant Inspector General for Audits, Inspections, and Evaluations Chairs the I&E 

Roundtable.

The IG also served on the CIGIE Budget and Legislation Committees and as a member of the CIGIE IG 

candidate panel. The Legislation Committee fosters relationships with Congress, represents the IG 

community’s interests on legislative initiatives, and keeps OIGs apprised of pertinent legislative 

developments. The Budget Committee provides leadership in the development of CIGIE’s annual 

appropriation requests and coordinates with OMB and relevant Congressional committees on funding 

CIGIE activities. The IG candidate panel reviews potential IG candidates and makes recommendations to 

the appropriate appointing authority—the President or agency head. Finally, as Chair of the I&E 

Committee, IG Laguarda also sat on the CIGIE Executive Council, which assists in governance of CIGIE.

In addition to their involvement in the above-listed committees, OIG staff participated in a variety of CIGIE 

committees and working groups, including the Audit Committee, the Diversity, Equity, Inclusion, and 

Accessibility Work Group, the Small and Unique IG working group, the Council of Counsels to the 

Inspectors General (on which our Counsel serves as Vice Chair), the Assistant Inspectors General for 

Investigations Subcommittee, and the Whistleblower Protection Coordinators working group.
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Farm Credit Administration | Office of Inspector General

Reviews of Proposed Legislation, Regulations, and Policies

The OIG reviews proposed and existing legislation, regulations, and policies that affect Agency programs 

and operations or the mission and functions of the OIG. When appropriate, the OIG makes 

recommendations regarding the impact of such legislation, regulations, and policies on economy or 

efficiency, the prevention and detection of fraud, waste, and abuse, or the integrity and independence of 

the OIG. This reporting period saw the OIG review various developments relevant to OIG authorities and 

operations. Of note, the OIG provided input on CIGIE’s legislative priorities for the 118th Congress. 
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Farm Credit Administration | Office of Inspector General

APPENDIX I: PEER REVIEWS

To ensure adherence to relevant professional standards, each OIG is subject to periodic external peer 

reviews. Information on peer reviews conducted by and of the FCA OIG is provided below.

Reports of external peer reviews of FCA OIG operations may be found on the OIG’s online reports page. 

Reports of peer reviews conducted by the FCA OIG may be located on the websites of the reviewed OIGs.

Audit

The U.S. Government Accountability Office Government Auditing Standards require any organization 

conducting audits in accordance with those standards to undergo an external peer review at least once 

every three years. These peer reviews conclude in a rating of pass, pass with deficiencies, or fail. A rating 

of pass signifies that the audit organization’s system of quality control has been suitably designed and 

complied with to provide the organization with reasonable assurance of performing and reporting in 

conformity with applicable professional standards and legal and regulatory requirements in all material 

respects.

The FCA OIG’s audit function was not subject to peer review during the reporting period. The most recent 

peer review was completed by the Federal Trade Commission OIG on June 9, 2022. The FCA OIG received 

the highest rating available, pass, and the report made no recommendations for corrective action.

On February 24, 2023, the FCA OIG issued a peer review report of the United States Capitol Police OIG’s 

audit function, which received a rating of pass. The FCA OIG also issued a letter of comment setting forth 

findings not considered to be of sufficient significance to affect the opinion expressed in the report.

Inspection and Evaluation

The CIGIE Quality Standards for Inspection and Evaluation require members of CIGIE that conduct 

inspections or evaluations under those standards to undergo an external peer review every three years. 

Inspection and evaluation peer review reports do not include an overall rating (such as pass or fail) but 

state whether the reviewed OIG’s policies and procedures were generally consistent with CIGIE standards 

and whether the OIG’s work generally complied with those standards.

The FCA OIG’s inspection and evaluation function was not subject to peer review during the reporting 

period. The most recent peer review was completed by the Securities and Exchange Commission OIG on 

July 8, 2022. The FCA OIG received the highest rating available and the report made no recommendations 

for corrective action. 

The FCA OIG did not conduct any inspection and evaluation peer reviews during the reporting period.
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Semiannual Report to Congress

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Farm Credit Administration | Office of Inspector General

Investigation

CIGIE’s Qualitative Assessment Review Guidelines for Investigative Operations of Federal Offices of Inspector 

General establish an independent external evaluation process for investigative operations. The objective 

of an investigative peer review is to determine whether internal control systems are in place and operating 

effectively to provide reasonable assurance that an OIG’s investigative operations comply with CIGIE’s 

Quality Standards for Investigations. Reviewed OIGs are assessed a rating of compliant or non-compliant. 

While the guidelines do not mandate that OIGs without statutory law enforcement authority—like the

FCA OIG—undergo investigative peer reviews, they encourage voluntary participation.

The FCA OIG did not undergo an investigative peer review during the reporting period. The OIG’s 

investigative function is scheduled to be peer reviewed in spring 2025. The most recent peer review of 

the FCA OIG’s investigative program was performed by the Securities and Exchange Commission OIG for 

the one-year period ending September 30, 2007.

The FCA OIG did not conduct any investigative peer reviews during the reporting period.

Outstanding Recommendations

There are no outstanding recommendations from any peer review conducted by another OIG that have 

not been fully implemented.

There are no recommendations from any peer review conducted by the FCA OIG that remain outstanding 

or that have not been fully implemented. 
15

Semiannual Report to Congress

October 1, 2022 – March 31, 2023 

Farm Credit Administration | Office of Inspector General

APPENDIX II: REPORTS ISSUED

Table 4 lists all audit, inspection, and evaluation reports issued during the reporting period. For each 

report, Table 4 lists the dollar value of questioned costs (including the dollar value of unsupported costs), 

the dollar value of recommendations that funds be put to better use, and whether a management decision 

had been made by the end of the reporting period. 

Table 4 

Report Title

Dollar Value of Questioned Costs 

Total Unsupported

Dollar Value of 

Recommendations that 

Funds be Put to Better 

Use

Management Decision 

Made by the End of the 

Reporting Period

Farm Credit Administration's $0 $0 $0 Yes

Compliance with the Payment 

Integrity Information Act of 2019 

for Fiscal Year 2022

Farm Credit Administration’s $0 $0 $0 Yes

Examiner Staffing Program

Farm Credit Administration’s $12,540 $0 $0 Yes

Financial Statements

Fiscal Year 2022

Definitions

Management Decision: The evaluation by agency management of the findings and recommendations included in an audit 

report and the issuance of a final decision by management concerning its response to the findings and recommendations, 

including actions concluded to be necessary.

Questioned Cost: A cost that is questioned by the OIG because of an alleged violation of a provision of a law, regulation, 

contract, grant, cooperative agreement, or other agreement or document governing the expenditure of funds; a finding that, 

at the time of the audit, the cost is not supported by adequate documentation; or a finding that the expenditure of funds for 

the intended purpose is unnecessary or unreasonable.

Recommendation that Funds be Put to Better Use: A recommendation that funds could be used more efficiently if agency 

management took actions to implement and complete the recommendation, including reductions in outlays; de-obligation 

of funds from programs or operations; withdrawal of interest subsidy costs on loans or loan guarantees, insurance, or bonds;

costs not incurred by implementing recommended improvements related to the operations of the agency, a contractor, or 

grantee; avoidance of unnecessary expenditures noted in pre-award reviews of contract or grant agreements; or any other 

savings which are specifically identified.

Unsupported Cost: A cost that is questioned by the OIG because the OIG found that, at the time of the audit, such cost is 

not supported by adequate documentation.
16

Semiannual Report to Congress

October 1, 2022 – March 31, 2023 

Farm Credit Administration | Office of Inspector General

APPENDIX III: OPEN RECOMMENDATIONS

Table 5 identifies recommendations made before the reporting period, for which corrective action had 

not been completed as of March 31, 2023, including the potential cost savings associated with the 

recommendation. An up-to-date list of open OIG recommendations may be found at 

Oversight.gov/recommendations. 

Table 5

Report Recommendation

Potential

Cost Savings

Farm Credit Administration’s

External Communication Process

1 The Office of Inspector General recommends the Office of Congressional

and Public Affairs analyze the use of social media accounts to understand 

how to optimize content and extend the reach of the messaging.

$0

2 The Office of Inspector General recommends the Office of Congressional

and Public Affairs pursue verification of the Farm Credit Administration

Twitter and Facebook accounts.

$0

3 The Office of Inspector General recommends the Office of Congressional

and Public Affairs, in coordination with applicable offices, document social 

media processes to include:

• approval processes,

• monitoring responsibilities,

• required disclaimers,

• password protection, and

• records retention.

$0

4 The Office of Inspector General recommends the Office of Congressional

and Public Affairs, in coordination with other applicable offices, document

website procedures that include roles and responsibilities for website

maintenance and security.

$0

5 The Office of Inspector General recommends the Office of Congressional

and Public Affairs update and finalize the Office of Congressional and 

Public Affairs procedures manual.

$0

The Farm Credit

Administration’s Compliance

with the Federal Information

Security Modernization Act for

Fiscal Year 2022

1 Not publicly released. $0

Farm Credit Administration’s

Enterprise Risk Management 

and Internal Control Program

2 The Office of Inspector General recommends the Office of the Chief

Financial Officer implement the current internal control review process

across Farm Credit Administration offices.

$0

7 The Office of Inspector General recommends the Office of the Chief

Financial Officer train internal control reviewers on requirements and 

responsibilities.

$0

The Office of Secondary Market

Oversight’s Examination Policies

and Procedures

2 The Office of Inspector General recommends the Office of Secondary

Market Oversight document examination policies and procedures unique

to the examination of the Federal Agricultural Mortgage Corporation.

$0

The Farm Credit

Administration’s Compliance

with the Federal Information

Security Modernization Act for

Fiscal Year 2020

6 Not publicly released. $0
17

Semiannual Report to Congress

October 1, 2022 – March 31, 2023 

Farm Credit Administration | Office of Inspector General

INDEX OF REPORTING REQUIREMENTS

The following is an index to semiannual reporting requirements found at 5 U.S.C. § 405(b).

7

Description Page

(1) Significant problems, abuses, and deficiencies relating to the administration of FCA programs and 

operations and associated reports and recommendations for corrective action made by the OIG

4-7, 9-10

(2) Recommendations made before the reporting period, for which corrective action has not been completed 16

(3) Significant investigations closed during the reporting period None

(4) Convictions during the reporting period resulting from investigations None

(5) Information regarding each audit, inspection, or evaluation report issued during the reporting period 15

(6) Management decisions made with respect to any audit, inspection, or evaluation issued during a previous 

reporting period

None

(7) Information described under section 804(b) of the Federal Financial Management Improvement Act of 1996 None

(8) Peer reviews conducted by another OIG 13-14

(9) Recommendations from any peer review conducted by another OIG that have not been fully implemented 14

(10) Peer reviews conducted of another OIG, including recommendations made from any previous peer review 

that remain outstanding or have not been fully implemented

13-14

(11) Statistical tables for investigations and referrals 8

(12) Metrics for developing investigative statistics 8

(13) Investigations involving a senior government employee where allegations of misconduct were 

substantiated

None

(14) Instances of whistleblower retaliation None

(15)(A) Agency attempts to interfere with the independence of the OIG None

(15)(B) Reports made under 5 U.S.C. § 406(c)(2) None

(16)(A) Closed audits, inspections, and evaluations not disclosed to the public None

(16)(B) Closed investigations involving a senior government employee not disclosed to the public None

There were no contract audit reports issued during the reporting period that would be reportable under 

section 845 of the National Defense Authorization Act for Fiscal Year 2008.8

7 Reflects amendments made in the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, 

Pub. L. 117-263, § 5273 (Dec. 23, 2022) to 5 U.S.C. app. § 5. The IG Act was recodified at 5 U.S.C. §§ 401–424 shortly 

thereafter by Pub. L. 117-286 (Dec. 27, 2022), but the recodification did not address the changes effected in the 

December 23 act. 8 Pub. L. 110-181 (Jan. 28, 2008).

REPORT FRAUD, WASTE, ABUSE, &

MISMANAGEMENT

Fraud, waste, abuse, and mismanagement in government concerns everyone: 

Office of Inspector General staff, Farm Credit Administration employees, 

Congress, and the general public. We actively solicit allegations of any fraud, 

inefficient and wasteful practices, abuse of authority, and mismanagement 

related to FCA programs and operations. You can report allegations to us in 

several ways:

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 the OIG, please visit our 

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