Kenneth A. Spearman, Board Chairman and Chief Executive Officer

Dallas P. Tonsager, Board Member

Jeffery S. Hall, Board Member

MINUTES OF THE REGULAR MEETING

OF THE

FARM CREDIT ADMINISTRATION BOARD

January 14, 2016 

These minutes reflect the business transacted at the January 14, 2016, Regular Meeting of the Farm 

Credit Administration Board (FCA Board) pursuant to the Government in the Sunshine Act (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 9:38 a.m. Members of the Board present were:

Kenneth A. Spearman, Board Chairman and Chief Executive Officer

Dallas P. Tonsager, Member

Jeffery S. Hall, 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 Farm Credit System Insurance Corporation (FCSIC); and three members 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. 

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

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

Mr. Tonsager moved to adopt the Agenda as published. 

Mr. Hall seconded the motion.

1
There being no further discussion, Board Chairman Spearman called the question.

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

Mr. Hall 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. 

Mr. Tonsager seconded the motion.

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

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

OPEN SESSION

Approval of Minutes

Minutes for December 10, 2015, Regular Board Meeting

(BM-14-JAN-16-01) 

Mr. Tonsager moved to approve the minutes for December 10, 2015, FCA Regular Board Meeting. 

Mr. Hall seconded the motion.

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

The Secretary polled the Board Members and the motion carried unanimously. (BM-14-JAN-16-01) 

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

New Business

Farmer Mac Investment Eligibility - Proposed Rule

(BM-14-JAN-16-02) 

Joe Connor of the Office of Secondary Market Oversight and Laura McFarland of the Office of 

General Counsel presented the Farmer Mac Investment Eligibility – Proposed Rule.

Board Chairman Spearman opened the discussion for questions by the Board.

Board Chairman Spearman asked if there was any further discussion and asked staff to provide their 

recommendation. Staff provided their recommendation. 

Board Chairman Spearman called for a motion on the staff’s recommendation regarding the 

proposed rule. 

2
Mr. Hall moved that the Board approve the Farmer Mac Investment Eligibility – Proposed Rule.

Mr. Tonsager seconded the motion.

Board Chairman Spearman asked if there was any further discussion.

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

The Secretary polled the Members and the motion carried unanimously. (BM-14-JAN-16-02)

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

Reports

Auditor’s Report on FCA FY 2015/2014 Financial Statements

Elizabeth Dean, Inspector General, and auditors Matt Farage and Hunter Blanks from Harper, Rains, 

Knight, and Company presented the Auditor’s Report on FCA FY 2015/2014 Financial Statements.

Board Chairman Spearman 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 E.)

CLOSED SESSION

The Board Chairman noted that this was a Closed Session and ensured that members of the public 

and nonessential FCA and FCSIC staff were not in the room so the Board could meet in Closed Session

with the Auditors. 

Board Chairman Spearman convened the closed session of the meeting at 9:25 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. 

The Board Chairman 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 F.) 

Members of the Board present were:

Kenneth A. Spearman, Board Chairman and Chief Executive Officer

Dallas P. Tonsager, Member

Jeffery S. Hall, Member

3
The above named constitute the full Board. 

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

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

Reports

Executive Session with External Auditor

The FCA Board held an executive session with Matt Farage and Hunter Blanks from Harper, Rains, 

Knight and Company regarding the Auditor’s Report on FCA FY 2015/2014 Financial Statements. 

Others present were Executive Assistants Russell Middleton, Wendy Laguarda, and Kevin Kramp; 

Dale L. Aultman, Secretary to the Board; and Charles Rawls, General Counsel. 

The closed session ended at 9: 37 a.m.

ADJOURNMENT

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

would entertain a motion to adjourn the meeting.

Mr. Tonsager moved that the meeting be adjourned.

Mr. Hall seconded the motion.

Board Chairman Spearman called the question. 

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

The meeting adjourned at 9:38 a.m.

NOTATIONAL VOTE ACTIONS 

There were two notational vote actions approved by the FCA Board from December 11, 2015, 

through January 13, 2016 as follows:

Item Number Action Date Voting Results Subject

NV 15- 25 12/22/2015 Approved Informational Memorandum Regarding Private Flood Insurance

NV 15- 26 12/22/2015 Approved FCA 2016 Compensation and Benefits Program

4
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 14, 2016. 

___________/s/______________ ___________/s/______________

Kenneth A. Spearman Dale L. Aultman

Board Chairman and Chief Executive Officer Secretary to the Board

 Approved:____February 11, 2016_

5
Exhibit A

Page 1 of 2 

STAFF PRESENT AT THE 

FCA REGULAR BOARD MEETING

January 14, 2016

Kenneth A. Spearman, Board Chairman and Chief Executive Officer

Dallas Tonsager, Board Member 

Jeffery S. Hall, Board Member

OFFICE

OPEN 

SESSION

CLOSED 

SESSION

Office of the Board

Aultman, Dale X X

Middleton, Russell X X

Corey, Kathryn X

Kramp, Kevin X X

Laguarda, Wendy X X

Calhoun, Gaye X

Buccolo, Debra X

OIT

Golley, Jerald X

COO

Hoffman, William X

Ibelli, Heyam X

OCPA

Stokke, Mike X

Meaux, Willy X

OSMO

Rea, Laurie X

Connor, Joe X

Hudson, Bruce X

6
Exhibit A

Page 2 of 2

OFFICE OPEN 

SESSION

CLOSED 

SESSION

OGC

Rawls, Charles X X

Strickland, Joy X

McFarland, Laura X

OE

Coleman, Robert X

Paulsen, Roger X

EEOI

Burlew, Thais X

OIG

Dean, Elizabeth X

Kaufman, Tori X

Farage, Matt (Auditor from Harper, Rains, Knight and 

Company)

X X

Blanks, Hunter (Auditor from Harper, Rains, Knight and 

Company)

X X

ORP

Mardock, Barry X

OMS

Smith, Stephen X

FCSIC

Pfitzinger, Rick X

Rubin, Howard X

GENERAL PUBLIC 3

7
Exhibit B 

Farm Credit Administration Farm Credit Administration

 1501 Farm Credit Drive McLean, Virginia 22102-5090

 

PUBLIC ANNOUNCEMENT OF

MEETING SUBJECT TO THE GOVERNMENT IN THE SUNSHINE ACT

Farm Credit Administration Board

Regular Meeting

January 14, 2016 

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 14, 2016. 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 10, 2015 

New Business

2 Farmer Mac Investment Eligibility – Proposed Rule

Reports

 3 Auditor’s Report on FCA FY 2015/2014 Financial Statements

CLOSED SESSION

4 Executive Meeting with Auditors1

_ January 4, 2016_______ ___________/s/______________

 Date Dale L. Aultman

 Secretary to the Board

 

1 Session Closed-Exempt pursuant to 5 U.S.C. Section 552b(c)(2).

8
Exhibit C 

Farm Credit Administration 1501 Farm Credit Drive

 McLean, Virginia 22102-5090

 (703) 883-4000

BOARD ACTION ITEM

 

FCA BOARD ACTION ON

Minutes for December 10, 2015 Board Meeting

BM-14-JAN-16-01

Effective Date: January 14, 2016

Effect on Previous Action: None

THE FCA BOARD HEREBY:

 

Approves the minutes for December 10, 2015, Regular Board Meeting as submitted.

DATED THIS 14th DAY OF JANUARY 2016 

BY ORDER OF THE BOARD

 

___________/s/______________

Dale L. Aultman

Secretary to the Board 

9
Exhibit D 

Farm Credit Administration 1501 Farm Credit Drive

 McLean, Virginia 22102-5090

 (703) 883-4000

BOARD ACTION ITEM

 

FCA BOARD ACTION ON

Farmer Mac Investment Eligibility – Proposed Rule

BM-14-JAN-16-02 

Effective Date: January 14, 2016

THE FCA BOARD HEREBY: 

• Approves the Proposed Rule that would amend the non-program investment 

eligibility criteria for the Federal Agricultural Mortgage Corporation; and

• Authorizes staff to make any technical or grammatical changes that may be necessary 

for publication in the Federal Register.

DATED THIS 14th DAY OF JANUARY 2016

BY ORDER OF THE BOARD

___________/s/______________

Dale L. Aultman

Secretary to the Board 

10
Fiscal Year 2015 

Financial Statements Audit

Farm Credit 

Administration 

11
Harper, Rains, Knight 

and Company, P.A.

700 12th St NW, Suite 700

Washington, DC 20005

Matthew Farage, Vice President

202-558-5167

mfarage@hrkcpa.com

12
Opinion on FCA’s FY 2015 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

13
Key Audit Areas:

• Payroll Expenditures (83% of total expenditures)

• Investments (95% of total assets)

• Assessments 

Methodology:

• Reliance on controls at service providers

• Testing of controls in place at FCA

• Interim and yearend substantive testing

14
Financial Statement Analysis: 

• Balance Sheet –Line Items were materially consistent with prior year with 

the exception on Investments and Capitalized Assets. 

15
Financial Statement Analysis – Cont’d: 

• Balance Sheet – Cont’d 

• Investment balance decreased due to redemptions that were utilized to fund 

portions of budget and offset assessments to System institutions.

• General property and equipment increased as FCA added new AV technology 

package in FY2015.

16
Financial Statement Analysis – Cont’d: 

• Balance Sheet – Cont’d 

• Investments were consistent with Board direction.

17
Financial Statement Analysis – Cont’d: 

• Statement of Net Cost – Gross Costs remained consistent across each 

program, with Safety and Soundness seeing an increase of $2 million in 

FY15.

• Earned Revenues were materially consistent with prior year and 

budgeted amounts. 

18
Financial Statement Analysis – Cont’d: 

• Statement of Changes in Net Position – Other Financing Sources were 

materially consistent with prior year. 

• Decrease in Net Position due to increase spending in Safety and 

Soundness, as presented on Statement of Net Cost.

19
Financial Statement Analysis – Cont’d: 

• Statement of Budgetary Resources – Only major change in FY2015 was 

the increase in Obligations Incurred, which is in line with the overall 

increase in Net Cost of Operations.

20
21
Thank You ~

Inspector General and Staff 

& 

Chief Financial Officer and Staff

22
Exhibit F 

Farm Credit Administration 1501 Farm Credit Drive McLean, Virginia 22102-5090

 

 

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 14, 2016, 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).

 

 ___________/s/______________ Date: January 14, 2016 

 Charles R. Rawls

General Counsel 

23