FY 2022

Performance and 

Accountability Report

Farm Credit Administration

Regulator of the Farm Credit System
Mission

The Farm Credit Administration ensures 

that Farm Credit System institutions and 

Farmer Mac are safe, sound, and dependable 

sources of credit and related services for 

all creditworthy and eligible persons in 

agriculture and rural America.
FCA Performance and Accountability Report — 2022 | 1

Contents

Statement of Board Chairman and CEO 4

Management’s Discussion and Analysis 6

FCA at a Glance 7

FCA history 8

FCA funding and governance 8

FCSIC 8

FCA offices 8

Highlights of FCA’s Performance Goals and Results   

Goal 1 highlights  .

Goal 2 highlights  .

Goal 3 highlights  .

Resources to achieve our strategic goals 14

Analyses and Highlights of FCA’s Financial Statements 15

Financial Highlights 15

Program costs and revenues   

Limitations of financial statements 21

Forward-looking analysis 21

Analysis of FCA’s Systems, Controls, and Legal Compliance 22

Strategy for FCA’s financial management system 22

Federal Managers’ Financial Integrity Act  .

Internal control program . 

Prompt Payment Act 23

Debt Collection Improvement Act 23

Improper payments 23

Digital Accountability and Transparency Act 23

Inspector General Act 24

Summary of OIG audit, inspection, and evaluation activities 24

Statement of Assurance  .

Program Performance 26

FCA Performance Report 27

Data validation and verification   

Goals 27
2 | FCA Performance and Accountability Report — 2022

Financial Section   

Transmittal Letter of Auditor’s Report 51

Independent Auditor’s Report 52

Financial Statements   

Balance sheets 58

Statements of net cost 59

Statements of changes in net position 60

Statements of budgetary resources 61

Notes to the financial statements 62

Other Information 76

Summary of Financial Statement Audit and Management Assurances 77

Management and Performance Challenges 78

Management’s Response to Challenges Identified by FCA’s Inspector General . 

Payment Integrity Information Act Reporting 85

Civil Monetary Penalty Adjustment for Inflation 86

Additional Information  .

Tables Appearing in Report

Table 1. FY 2022 performance budget versus program costs 14

Table 2. Summarized financial data 15

Table 3. Composition of assets . 

Table 4. Composition of liabilities 16

Table 5. Agency budget  .

Table 6. Funds used based on congressional limitation 18

Table 7. Funds used by major budget category 18

Table 8. 2022 Federal Employee Viewpoint Survey results for employee engagement 40

Table 9a. Goal 1—Performance measures and results for public mission   

Table 9b. Goal 2—Performance measures and results for safety and soundness   

Table 9c. Goal 3—Performance measures and results for workforce management  .

Table 10. Summary of financial statement audit 77

Table 11. Summary of management assurances 77

Table 12. Annual inflation adjustments of civil monetary penalties 86
FCA Performance and Accountability Report — 2022 | 3

List of Figures Appearing in Report

Figure 1: FCA organizational chart as of October 2022.  

Figure 2. Percentage of FY 2022 gross costs by agency goal  .

Figure 3. Percentage of FY 2022 gross revenue by agency goal 20

Figure 4. FY 2022 sources of revenue 20

List of acronyms appearing in report

CAMELS capital, assets, management, earnings, liquidity, and sensitivity

CEO chief executive officer

COO chief operating officer

COVID-19 coronavirus disease 2019

CSRS Civil Service Retirement System

DATA Digital Accountability and Transparency Act

EEO Equal Employment Opportunity 

Farmer Mac Federal Agricultural Mortgage Corporation

FCA Farm Credit Administration

FCS Farm Credit System

FCSIC Farm Credit System Insurance Corporation

FCSBA Farm Credit System Building Association

FERS Federal Employees Retirement System

FFMIA Federal Financial Management Improvement Act

FMFIA Federal Managers’ Financial Integrity Act

FIRS Financial Institution Rating System

FY fiscal year

GAAP generally accepted accounting principles

GAO Government Accountability Office

GSE government-sponsored enterprise

IM informational memorandum

IT information technology

Libor London Interbank Offered Rate

NCB National Consumer Cooperative Bank

OE Office of Examination

ODAE Office of Data Analytics and Economics

OIG Office of Inspector General

OIT Office of Information Technology

OMB U.S. Office of Management and Budget

OPM U.S. Office of Personnel Management

OSMO Office of Secondary Market Oversight

SFFAS Statements of Federal Financial Accounting Standards

USDA United States Department of Agriculture

YBS young, beginning, and small (farmers and ranchers)
4 | FCA Performance and Accountability Report — 2022

Statement of Board Chairman and CEO 

November 8, 2022

As board chairman and CEO of the Farm Credit Administration, I invite you to review our Performance 

and Accountability Report for Fiscal Year 2022. Unless otherwise indicated, the report covers our activities from Oct. 1, 2021, to Sept. 30, 2022.

In FY 2022, we once again achieved the goals outlined in our strategic plan and met or exceeded almost 

all performance targets. In addition, our financial statements received an unmodified opinion from an 

independent auditor. Based on the results of our internal evaluations, I can assure you that the financial 

and performance information in this report is complete and reliable. We also did not identify any material weaknesses in our internal controls.

FCA is the arm’s length regulator of the Farm Credit System (System) and the Federal Agricultural 

Mortgage Corporation (Farmer Mac). Our mission is to ensure that System institutions and Farmer Mac 

are safe, sound, and dependable sources of credit and related services for all creditworthy and eligible 

persons in agriculture and rural America.

The System holds around 45% of the nation’s total farm business debt, so it plays a vital role in the health 

of the nation’s agricultural economy. Farmer Mac, which provides a secondary market for agricultural 

real estate mortgages and rural cooperative loans, enhances the ability of lenders to offer competitive 

financing to rural borrowers and farmland investors.

Both the System and Farmer Mac are well capitalized and remain financially safe and sound. Together, 

the Farm Credit System banks and associations held $456 billion in assets as of June 30, 2022, up around 

12% from the year before. Farmer Mac had assets of $25.9 billion as of that date, up 6.7% from the year 

before. 

Over the past fiscal year, we worked to protect the financial soundness of the System and Farmer Mac 

and to ensure that they continue to fulfill their missions to serve agriculture and rural America. Here are 

some of the ways we accomplished these goals during the reporting period from July 1, 2021, to June 30, 

2022:

• Prepared 51 formal reports of examination, 49 interim activity letters, and 72 letters regarding FIRS 

(Financial Institutions Rating System) ratings for System institutions and Farmer Mac.

• Responded to 19 inquiries and complaints from System borrowers and loan applicants.

• Issued guidance to the System on FCA’s expectations regarding sound business practices in the governance and management of wholesale funding arrangements and related processes.

• Issued a final rule governing the standards of conduct for System institutions.

• Issued a final rule governing the implementation of the current expected credit losses model in determining the allowance for loan losses.
FCA Performance and Accountability Report — 2022 | 5

• Issued a final rule to clarify numerous provisions of the tier 1/tier 2 capital framework and issued guidance to the System that incorporated those clarifications. 

• Issued a proposed rule governing the appointment of the Farm Credit System Insurance Corporation 

as conservator and receiver of distressed System institutions.

• Issued a proposed rule to increase service by the System’s direct-lender associations to young, beginning, and small farmers and ranchers in their respective territories. 

• Continued to study the loan syndication market.

FCA had a good year in FY 2022 in many respects, not the least of which was its high ranking on the list 

of Best Places to Work in the Federal Government. According to the results of the Federal Employee 

Viewpoint Survey conducted by the Office of Personnel Management, FCA placed sixth on the list of best 

places to work among small federal agencies. 

Having recently joined the FCA board and been designated its chairman and CEO, I look forward to working closely with my fellow board members, senior leaders, and agency staff to build on these successes. 

Vincent G. Logan

Board Chairman and CEO
6 | FCA Performance and Accountability Report — 2022

Management’s 

Discussion and Analysis

This section provides an overview of the Farm 

Credit Administration and our mission. It highlights 

information on FCA’s performance, financial results, 

systems and controls, compliance with laws and 

regulations, and an assessment of future challenges 

and plans.
FCA Performance and Accountability Report — 2022 | 7

FCA at a Glance

The Farm Credit Administration is an independent agency in the executive branch of the U.S. 

government. We are responsible for regulating 

and supervising the Farm Credit System (its banks, 

associations, and related entities) and the Federal 

Agricultural Mortgage Corporation (Farmer Mac).

The System is a nationwide network of borrowerowned financial institutions that provide credit to 

farmers, ranchers, residents of rural communities, 

agricultural and rural utility cooperatives, and 

other eligible borrowers.

FCA is responsible for ensuring that the System remains a dependable source of credit for agriculture 

and rural America. We do this in two ways:

• We ensure that System institutions, including 

Farmer Mac, operate safely and soundly and 

comply with applicable laws and regulations.

• We issue policies and regulations governing 

how System institutions conduct their business 

and interact with borrowers. 

History highlights 

1909: The Country Life Commission studies rural progress in the United States.

1912 and 1913: National commissions study European agricultural credit.

1916: Congress creates the Farm Credit System, establishing 12 federal land banks.

1923: Twelve federal intermediate credit banks are added to System.

1933: FCA is created; production credit associations and one central bank and 12 regional banks for cooperatives are 

added to System.

1934: FCA becomes responsible for chartering, examining, and supervising all federal credit unions.

1939: FCA becomes part of USDA.

1953: FCA becomes independent agency again.

1968: The System repays government capital. 

1971: Congress passes Farm Credit Act of 1971, from which FCA derives its current powers and authorities.

1980:	 The Farm Credit Act Amendments of 1980 allows System lenders to provide credit and other financial services to

additional types of borrowers. They also require federal land banks and production credit associations to develop 

lending programs for young, beginning, and small farmers and ranchers.

1985:	 FCA becomes arm’s length regulator with enforcement powers.

1987: The System is authorized to receive $4 billion in federal assistance but uses only $1.3 billion.

1988: The Farm Credit System Insurance Corporation and Farmer Mac are established.

1996: Congress passes Farm Credit System Reform Act granting Farmer Mac authority to buy and pool loans.

2005:	 The System repays all federal financial assistance with interest.

2017:	 FCA capital rule ensures that System institutions hold sufficient regulatory capital.

2018:	 Congress passes Agriculture Improvement Act of 2018, which enhances FCA’s enforcement powers.
8 | FCA Performance and Accountability Report — 2022

FCA history

An executive order by President Franklin D. 

Roosevelt in 1933 placed all existing agricultural 

credit organizations under the supervision of a 

new agency, the Farm Credit Administration. FCA 

was independent until 1939, when it became part 

of the U.S. Department of Agriculture (USDA), but 

became an independent agency again under the 

Farm Credit Act of 1953. This act created a federal 

Farm Credit Board with 13 members (one from 

each of the 12 farm credit districts and one appointed by the secretary of agriculture) to develop 

policy for FCA. Farmer-borrowers now had a voice 

at the national level.

FCA also played a pivotal role in the federal credit union movement when, in 1934, it was given 

responsibility for chartering, examining, and 

supervising all federal credit unions. Before this 

oversight was turned over to the Federal Deposit 

Insurance Corporation in 1942, FCA had chartered 

more than 4,000 credit unions and examined 

them annually.

FCA derives its current powers and authorities 

from the Farm Credit Act of 1971, as amended 

(12 U.S.C. 2001–2279cc). This act gave the banks 

and associations more flexibility in lending to 

production agriculture and authorized lending to 

commercial fishermen and rural homeowners. In 

1980, the law was amended to encourage lending 

to young, beginning, and small farmers. The U.S. 

Senate Committee on Agriculture, Nutrition, and 

Forestry and the U.S. House of Representatives 

Committee on Agriculture oversee FCA and the 

Farm Credit System.

For a complete history, see the timeline from 1909 

to the present on the FCA website (https://www.fca.

gov/about/historical-highlights-of-fca-and-the-fcs).

FCA funding and governance

FCA does not receive a federal appropriation. We 

maintain a revolving fund financed primarily by 

assessments from the institutions we regulate. 

Other sources of income for the revolving fund 

are interest earned on investments with the U.S. 

Treasury and reimbursements for services we provide to federal agencies and others.

FCA’s policy, regulatory agenda, and supervisory 

and examination activities are established by a 

full-time, three-person board whose members are 

appointed by the president of the United States 

with the advice and consent of the Senate. 

Board members serve a six-year term and may 

remain on the board until a successor is appointed. 

The president designates one member as chairman 

of the board, who serves in that capacity until the 

end of his or her own term. The chairman also 

serves as our chief executive officer.

FCSIC

FCA board members also serve as the board of 

directors for the Farm Credit System Insurance 

Corporation (FCSIC), which is a separate independent agency. FCSIC was established by the 

Agricultural Credit Act of 1987 in the wake of the 

agricultural credit crisis of the 1980s. The purpose 

of FCSIC is to protect investors in Systemwide 

debt securities by insuring the timely payment of 

principal and interest on certain System notes, 

bonds, and other obligations purchased by investors. FCSIC does so by maintaining the Farm Credit 

Insurance Fund, a reserve that represents the 

equity of FCSIC.

FCA offices

Our headquarters and one field office are in 

McLean, Virginia. We also have field offices in 

Bloomington, Minnesota; Dallas, Texas; Denver, 

Colorado; and Sacramento, California.

As of Sept. 30, 2022, FCA had 319 employees. These 

employees work in the following offices, with the 

majority serving in the Office of Examination.

The FCA board manages, administers, and establishes policies for FCA. The board approves the 

policies, regulations, charters, and examination 

and enforcement activities that ensure a strong 

Farm Credit System (FCS). The board also provides 

for the examination and supervision of the FCS, 

including Farmer Mac, and oversees the activities 

of the FCS Building Association, which acquires, 

manages, and maintains FCA headquarters and 
FCA Performance and Accountability Report — 2022 | 9

field office facilities. Vincent G. Logan is the 

board chairman.

The chairman of the FCA board serves as the chief 

executive officer (CEO). The CEO enforces the 

rules, regulations, and orders of the FCA board. He 

or she directs the implementation of policies and 

regulations adopted by the FCA board. The Office 

of the Chief Executive Officer plans, organizes, 

directs, coordinates, and controls our day-to-day 

operations and leads the agency’s efforts to achieve 

and manage a diverse workforce. Vincent G. Logan 

is the CEO.

The chief operating officer (COO) has broad 

responsibility for planning, directing, and controlling the operations of the Offices of Agency 

Services, Examination, Regulatory Policy, Data 

Analytics and Economics, Information Technology, 

Chief Financial Officer, and General Counsel in 

accordance with the operating philosophy and 

policies of the FCA board. He or she supervises 

and provides policy direction to the executive staff 

responsible for managing these offices. The COO 

oversees and coordinates the development and 

implementation of the agencywide strategic, operating, and budget plans and activities. The COO 

also coordinates the resolution of internal policy, 

personnel, and program issues with agency executive leadership and the FCA board.

The Office of Agency Services manages and delivers human capital, operational, and workforce 

development services for the agency. It also facilitates the agency's strategic planning efforts. The 

office consists of three service delivery teams: 

Human Resources Division, Operations Division, 

and Learning and Organizational Change Team. 

Services provided include strategic human capital 

management, recruiting, workforce planning, 

succession management, staffing and placement, 

job evaluation, compensation and benefits, payroll administration, performance management, 

awards, employee relations, employee training and 

development, property management, personnel 

security, continuity of operations and emergency 

preparedness, supply services, and mail service.

The Office of the Chief Financial Officer supports 

FCA’s operations by providing financial management policy advice and reporting the agency’s 

financial results. The office manages the agency’s 

compliance with federal financial management 

requirements. It also reports on the accuracy and 

propriety of transactions, the extent to which 

assets are accounted for and safeguarded, and the 

adequacy of internal controls to detect and prevent 

material financial misstatements. It oversees the 

agency’s budget; the investments committee; FCS 

assessments; and the agency’s purchasing, credit 

card, and travel/relocation programs. It also facilitates the agency’s risk management and internal 

control efforts to help ensure operational and fiscal 

effectiveness and efficiency.

The Office of Congressional and Public Affairs

serves as the agency’s principal point of contact for 

Congress, the media, other government agencies, 

FCS institutions, employees, System borrowers, 

and the public. The office develops and monitors 

legislation pertinent to FCA and the FCS, serves 

as the agency’s congressional liaison, facilitates 

intergovernmental relations, and prepares testimony for the chairman and other board members. 

It also provides information to external audiences 

through news releases, fact sheets, reports, videos, 

and other publications. The office cultivates relationships with media representatives who report 

on matters related to agriculture and rural credit, 

and it manages the content of the FCA website and 

social media channels. It also organizes special 

meetings, briefings for international visitors, and 

field hearings.

The Office of Data Analytics and Economics

evaluates strategic risks to the System and agency 

using data, analytics, economic trends, and other 

risk factors. Its staff members serve as stewards for 

agency data and provide information to the board 

and management for objective, evidence-based 

decision-making across FCA. The office facilitates 

an agencywide strategy for analytics and collaborates on business intelligence tools and the development of models to meet the strategic needs of 

the agency.

The Office of Equal Employment Opportunity and 

Inclusion manages and directs the diversity, inclusion, and equal employment opportunity (EEO) 

program for FCA and FCSIC. The office serves 

as the chief liaison with the Equal Employment 

Opportunity Commission and the Office of 
10 | FCA Performance and Accountability Report — 2022

Personnel Management on all EEO, diversity, and 

inclusion issues. The office provides counsel and 

leadership to agency management to carry out its 

continuing policy and program of nondiscrimination, affirmative action, and diversity.

The Office of Examination is responsible for examining and supervising each FCS institution in 

accordance with the Farm Credit Act and applicable 

regulations. The office develops oversight plans; 

conducts examinations; monitors the System’s 

condition and current and emerging risks to the 

System; and develops supervisory strategies to 

ensure that the FCS operates in a safe and sound 

manner, complies with the law and regulations, and 

fulfills its public policy purpose. For more information about the role of the Office of Examination, go 

to www.fca.gov/bank-oversight/guidance and click 

board policy statements to read our “Examination 

Philosophy” (FCA-PS-53).

The Office of General Counsel provides the FCA 

board and staff with legal counsel as well as guidance on the Farm Credit Act and general corporate, 

personnel, ethics, and administrative matters. 

The office supports the agency’s development and 

promulgation of regulations, enforcement of applicable laws and regulations, and implementation of 

conservatorships and receiverships. It represents 

and advises the agency on civil litigation. It also 

serves as the liaison to the Federal Register, administers the agency’s ethics program, and handles 

Freedom of Information Act requests.

The Office of Information Technology supports 

the information, solutions, and IT infrastructure 

that empower FCA to fulfill its mission. It is a respected partner in fulfilling FCA’s mission through 

innovative solutions. The office is responsible for 

protecting agency technology assets, planning and 

controlling information technology investments, 

leading change to improve the efficiency and effectiveness of agency operations, and maintaining 

compliance with IT regulatory mandates. It is 

responsible for continuing to leverage FCA’s investment in technology by collaborating across agency 

offices to identify and re-engineer business applications, data systems, and processes.

The Office of Inspector General provides independent and objective oversight of agency programs 

and operations through audits, inspections, evaluations, investigations, and the review of proposed 

legislation and regulations. The office promotes 

economy and efficiency within FCA and seeks 

to prevent and detect fraud, waste, abuse, and 

mismanagement in the agency’s programs and 

operations.

The Office of Regulatory Policy manages policy 

and regulation development activities, at the direction of the FCA board, to ensure the safety and 

soundness of the FCS and support the System’s 

mission. Policy and regulation development activities include the analysis of policy and strategic 

risks to the System on the basis of economic trends 

and other risk factors. The office also evaluates all 

regulatory and statutory prior approvals for System 

institutions on behalf of the FCA board, including 

chartering and other corporate approvals as well 

as funding approvals.

The Office of Secondary Market Oversight provides for the examination, regulation, and supervision of Farmer Mac to ensure its safety and soundness and the accomplishment of its public policy 

purpose as authorized by Congress. It also ensures 

that Farmer Mac complies with applicable laws 

and regulations, and it manages FCA’s enforcement 

activities with respect to Farmer Mac.

The designated agency ethics official is designated by the FCA chairman to administer the provisions of title I of the Ethics in Government Act of 

1978, as amended, to coordinate and manage FCA’s 

ethics program and to provide liaison to the Office 

of Government Ethics with regard to all aspects of 

FCA’s ethics program.

The secretary to the board serves as the parliamentarian for the board and keeps permanent and 

complete records of the acts and proceedings of 

the board. He or she ensures that the board complies with statutory, regulatory, and internal operation reporting requirements. The secretary to the 

board also serves as secretary to the Farm Credit 

System Insurance Corporation board. In addition, 

he or she serves as the Sunshine Act official for the 

FCA board.
FCA Performance and Accountability Report — 2022 | 11

Figure 1: FCA organizational chart as of October 2022

For an accessible version of this chart, go to 

www.fca.gov/about/fca-organizational-chart

FCA Board

Vincent G. Logan 

Chairman

Jeffery S. Hall 

Member

Glen R. Smith 

Member

—Office of the Board 

Chairman and Chief 

Executive Officer 

Vincent G. Logan

—Office of Inspector General 

Wendy R. Laguarda

—Office of the Chief Operating Officer

S. Robert Coleman

—Office of Congressional and 

Public Affairs

Michael A. Stokke

—Office of Equal Employment 

Opportunity and Inclusion 

Thais Burlew

—Office of Secondary Market Oversight *

Laurie A. Rea

—Designated Agency Ethics Official 

Jane Virga

—Secretary to the Board 

Ashley Waldron

—Office of Agency Services 

Vonda Bell

—Office of the Chief Financial 

Officer

Sandi Walters

—Office of Data Analytics and 

Economics 

Jeremy D’Antoni

—Office of Examination

Mike Duffy

—Office of General Counsel 

Clark Ogilvie †

—Office of Information 

Technology 

Jerald Golley

—Office of Regulatory Policy

Kevin Kramp

The headquarters of the Farm Credit Administration, located in McLean, Virginia.

Sherrell Carr, Farm Credit Administration

* Reports to the board for policy and to the CEO 

for administration.

† Maintains a confidential advisory relationship 

with each of the board members.
12 | FCA Performance and Accountability Report — 2022

Highlights of FCA’s Performance Goals 

and Results 

FCA’s mission is to ensure that Farm Credit System 

institutions and Farmer Mac are safe, sound, and 

dependable sources of credit and related services 

for all creditworthy and eligible persons in agriculture and rural America.

In our Strategic Plan for Fiscal Years 2018–2023, 

we identified three goals we must meet to fulfill 

our mission. For each goal, we identified strategies 

and actions to achieve the goal, as well as a set of 

performance measures to monitor our progress in 

meeting the goal.

Our performance report (page 27) shows that we 

met the goals identified in our strategic plan and 

met or exceeded most of the performance measures for which there are data to measure performance. The following is a summary analysis of our 

performance in reaching our goals.

Goal 1 highlights

Public mission: Ensure that the FCS and Farmer 

Mac fulfill their public missions for agriculture 

and rural areas.

There are nine strategies and six performance 

measures established for goal 1 in the strategic 

plan (see table 9a). The six performance measures 

are as follows:

1. Percentage of FCS institutions providing products and services that serve creditworthy and 

eligible persons and perform outreach to enhance diversity and inclusion. (Target: ≥90%)

2. Whether Farmer Mac’s business plan contains 

strategies to promote and encourage the inclusion of all qualified loans, including loans to 

small farms and family farmers, in its secondary market programs, and whether its business 

activities further its mission to provide a source 

of long-term credit and liquidity for qualifying 

loans. (Target: Yes)

3. Percentage of direct-lender institutions with 

satisfactory consumer and borrower rights 

compliance. (Target: ≥90%)

4. Percentage of direct-lender institutions with 

young, beginning, and small (YBS) programs 

for farmers and ranchers that are in compliance with YBS regulations. (Target: ≥90%)

5. Whether the majority of objectives listed in the 

preamble of each final rule were met on the 

two-year anniversary of the rule’s effective or 

implementation date. (Target: Yes)

6. Percentage of pre–rulemaking projects and 

proposed rules on which FCA requested input 

from persons outside of FCA. (Target: 100%)

We achieved or exceeded our targets for all six 

measures associated with goal 1.

Goal 2 highlights

Safety and soundness: Evaluate risk and 

provide timely and proactive oversight to 

ensure the safety and soundness of the System 

and Farmer Mac.

There are six strategies and six performance measures for goal 2 (see table 9b). The performance 

measures are as follows:

1. Percentage of System assets in institutions with 

composite CAMELS ratings of 1 or 2. See box on 

next page for explanation of CAMELS. (Target: 

≥90%)

2. Percentage of requirements in supervisory 

agreements with which FCS institutions have at 
FCA Performance and Accountability Report — 2022 | 13

least substantially complied within 18 months 

of execution of the agreements. (Target: ≥80%)

3. Percentage of institutions complying with 

regulatory capital ratio requirements. (Target: 

≥80%)

4. Whether the Office of Secondary Market 

Oversight’s examination and oversight plan and 

activities effectively identify emerging risks, 

and whether appropriate supervisory and corrective actions have been taken to effect change 

when needed. (Target: Yes)

5. Percentage of institutions with satisfactory audit and review programs, including institutions 

with acceptable corrective action plans. (Target: 

100%)

6. Whether five or more reports and dashboards 

were created that use data collected from the 

Farm Credit System to assess risk in the System. 

(Target: Yes)

We achieved or exceeded the targets for four of 

the six measures associated with goal 2. During 

this reporting period, performance measure 2 was 

not applicable because we did not have any supervisory agreements in place with FCS institutions. 

For performance measure 5, we did not achieve 

our target of 100% because one of the institutions 

The CAMELS rating system is based on an evaluation of six critical elements of a System institution’s

operations. Its purpose is to provide an accurate and consistent assessment of an institution’s capital, asset

quality, management, earnings, liquidity, and sensitivity to interest rate risk. Examiners assign a numeric rating between 1 and 5 to each of these components.

Capital—Capital is evaluated and rated based on the quantity and quality of capital, risks that could threaten 

capital, the ability to capitalize asset growth, and the management of capital. System institutions are 

expected to maintain capital commensurate with the nature and extent of risks to the institution and 

the ability of management to identify, measure, monitor, and control these risks. 

Asset Quality—Asset quality is evaluated and rated based on the credit risk in loans, investments, other real 

estate owned, and other assets. Management’s ability to identify, measure, monitor, and control credit

risk is also reflected here. This evaluation also considers the adequacy of the allowance for credit losses.

Management—Management is evaluated and rated based on the effectiveness of the board and management

at identifying, measuring, monitoring, and controlling the risks of the institution’s activities; ensuring

that the institution operates in a safe, sound, and efficient manner and complies with applicable laws

and regulations; and serving its public mission.

Earnings—Earnings are evaluated and rated based on the quantity, quality, and sustainability of the 

institution’s earnings. This evaluation considers the adequacy of earnings in relation to the institution’s

various risk exposures, earnings strategies, operating efficiency, and the adequacy of earnings to fund

capital needs.

Liquidity—Liquidity is evaluated and rated based on the institution’s ability to fund operations and meet

debt obligations and cashflow requirements without incurring unacceptable losses or materially

affecting the institution’s daily operations and financial condition.

Sensitivity—Sensitivity is evaluated and rated based on the degree to which changes in interest rates 

can adversely affect the institution’s earnings and capital. This evaluation addresses asset-liability

management practices, hedges, strategies for managing interest rate risk, and risk measurement 

processes.
14 | FCA Performance and Accountability Report — 2022

we regulate did not have an adequate corrective 

action plan to resolve weaknesses we identified in 

its internal control program. The institution is now 

developing a more effective corrective action plan.

Goal 3 highlights

Workforce management: Cultivate an 

environment that fosters a well-trained, 

motivated, and diverse staff while providing an 

effective plan for leadership succession.

There are four strategies and two performance 

measures for goal 3 (see table 9c). The performance measures are as follows:

1. Whether, as part of its recruiting efforts for 

entry-level examiners, FCA has ensured that 

at least 25% of its outreach efforts target applicants with a disability or who are members of a 

minority group. (Target: 25%)

2. Whether we have maintained or improved our 

score from last year in the annual employee 

satisfaction survey. (Target: ≥82%)

We achieved or exceeded the targets for both of the 

measures associated with goal 3. 

Resources to achieve our strategic goals

The performance goals, as outlined in the strategic 

plan, provide a framework for the development of 

the annual budget request and the performance 

measures and targets. We formulate and execute 

our budget by allocating resources according to the 

agency goals. We assess and measure our overall 

effectiveness in fulfilling our mission through the 

resulting analysis of the performance measures. 

When we formulate and execute our budget, we 

allocate dollars as follows:

• Goal 1—Public mission

• Goal 2—Safety and soundness

• Goal 3—Other activity

Goals 1 and 2 above align with the goals as noted in the performance report. Goal 3, however, 

differs between the performance report and the 

performance budget and execution. Costs for the 

workforce management goal in the strategic plan 

are an inherent part of our ability to fulfill our 

primary agency goals of public mission and safety 

and soundness. In the performance budget and 

in our execution of the budget, we use the other 

activity goal to track reimbursable activity separate 

from other agency primary mission costs. Table 1

displays the proportion of our budget allocated to 

each goal and the proportion of the costs associated with each goal. 

The percentage of costs related to our safety and 

soundness goal were lower than budgeted partly 

because of the reduced travel expenses we continued to see in the early part of the fiscal year. 

For specifics on the agency resources expended 

in support of our agency goals, please refer to the 

program costs and revenues section on page 18.

For more information about our performance results, see the performance results tables on pages 

42–48. For governmentwide performance reporting results, please refer to www.performance.gov. 

Table 1. FY 2022 performance budget versus program costs

Agency programs Percentage of total 

performance budget

Percentage of total 

program costs

Public mission 22.5% 26.0%

Safety and soundness 75.6% 73.3%

Other activity 1.9% 0.7%

Total 100.0% 100.0%
FCA Performance and Accountability Report — 2022 | 15

Analyses and Highlights of FCA’s Financial 

Statements

Financial Highlights

Financial operation of FCA

We pay for planned administrative expenses from 

a revolving fund, which is funded primarily by 

assessments received from Farm Credit System 

institutions, including the Federal Agricultural 

Mortgage Corporation (Farmer Mac) and the 

System’s service corporations.

We calculate the assessments using a formula 

established by FCA regulation. The FCA board approves our budget, and Congress usually imposes a 

limitation on the dollar amount of obligations that 

we may incur in a given fiscal year.

In addition to assessments, we receive funds from 

two other sources:

• Reimbursable services: We are reimbursed for 

the cost of examining the National Consumer 

Cooperative Bank and for performing services for the Farm Credit System Insurance 

Corporation and the U.S. Department of 

Agriculture (USDA).

• Interest earned: We earn interest on investments with the U.S. Department of the Treasury. 

We use interest earned on investments to build 

and maintain an agency reserve. The reserve 

ensures that we can effectively and efficiently 

respond to unexpected, unbudgeted expenses 

without needing to increase assessments.

Table 2 outlines key financial measures for FYs 

2022 and 2021. The following sections provide 

additional detail on these financial data. Our 

financial statements are provided on pages 57–74. 

Table 2. Summarized financial data

Key measure FY 2022 FY 2021

Total assets $48,403,650 $42,314,408

Total liabilities $22,456,719 $19,641,236

Net position $25,946,931 $22,673,172

Total budgetary resources $110,059,470 $99,582,445

Net outlays $(6,862,733) $(1,186,586)

Net cost of operations $3,240,792 $6,631,531

Table 3. Composition of assets

Assets FY 2022 FY 2021 Percentage change

Fund balance with Treasury $4,511,469 $896,793 403.1%

Investments 42,459,398 39,610,612 7.2%

Accounts receivable and prepayments 327,263 319,379 2.5%

Property and equipment 1,105,520 1,487,624 (25.7%)

Total $48,403,650 $42,314,408 14.4%
16 | FCA Performance and Accountability Report — 2022

FCA’s assets, liabilities, and net position

As shown in table 3, our total assets (the resources we own) for FY 2022 are composed of the 

following:

• Fund balance with Treasury (9.3%)

• Investments (87.7%)

• Accounts receivable and prepayments (0.7%)

• Property and equipment (2.3%)

During FY 2022, total assets increased by 

$6,089,242, or 14.4%, from amounts reported in FY 

2021.

As of Sept. 30, 2022, the agency held $4,511,469 in 

cash (fund balance with Treasury). While we invest 

all excess cash in U.S. Treasury securities, the 

timing of when cash is collected affects the ending 

balance. The increase in our cash balance from 

2021 to 2022 was due to a higher influx of funds 

collected after the cutoff time for investing on Sept. 

30, 2022. Cash collected after the investment cutoff 

for the day remains as an available cash balance 

and is invested the following day. The collections 

on Sept. 30 were prepaid assessments (that is, assessments due on Oct. 1 but received on or before 

Sept. 30) from several FCS institutions. 

Our investment portfolio, which accounts for 

the largest portion of our total assets, increased 

by $2,848,786 in FY 2022. The primary factor for 

this increase is the increase in assessments this 

fiscal year relative to FY 2021. During FY 2022, we 

purchased $15,718,052 in U.S. Treasury securities, 

using an investment strategy that enables us both 

to maintain a steady cash flow for agency operations and earn interest to build the agency reserve. 

We hold the reserve funds in contingency to address specific, onetime, unforeseen events without 

increasing assessments at a time that may be 

financially difficult for System institutions. Our 

policy is to maintain a reserve balance that covers 

approximately two months of operating expenses. 

Section 5.15 of the Farm Credit Act of 1971, as 

amended, (12 U.S.C. 2250) allows FCA to maintain 

a necessary reserve. The interest reserve makes 

up roughly 34.6% of our total investment portfolio. 

The remaining balance in the investment portfolio 

is comprised of our funded leave liability, prepaid 

assessments, agency obligations, and carryover 

funds from prior years.

Our liabilities, as shown in table 4, consist of the 

following general categories:

• Accounts payable (6.2%)

• Payroll and benefits (37.3%)

• Employer contributions and taxes payable 

(7.2%)

• Workers’ compensation (7.1%)

• Deferred revenue (42.2%)

Like total assets, our total liabilities (what we owe 

to the public and other government agencies) increased. Driven primarily by the increase in deferred revenue and accounts payable, overall 

Table 4. Composition of liabilities

Liabilities FY 2022 FY 2021 Percentage change

Accounts payable $1,400,517 $956,848 46.4%

Accrued liabilities (payroll and benefits) 8,375,421 9,141,457 (8.4%)

Employer contributions and taxes payable 1,611,932 1,503,037 7.2%

Workers’ compensation (funded and unfunded) 1,594,022 1,565,542 1.8%

Deferred revenue 9,474,827 6,474,352 46.3%

Total liabilities $22,456,719 $19,641,236 14.3%
FCA Performance and Accountability Report — 2022 | 17

liabilities increased by $2,815,483, or 14.3%, from 

2021 to 2022.

Deferred revenue—assessments received from FCS 

institutions that are not due until Oct. 1—increased 

by $3,000,475 relative to 2021. With the FY 2023 

assessments increasing by $2.6 million overall, we 

expected to see some increase in the dollar amount 

of prepaid assessments. At the beginning of each 

fiscal year, we reclassify any prepaid assessments 

as revenue earned in October of the new year.

Our accounts payable increased by $443,669 this 

year. As of Sept. 30, 2022, we had a higher amount 

in liabilities for services received but not paid (invoice accruals) relative to 2021. The timing of when 

vendors submit invoices for payment impacts the 

number of accruals that must be recorded at yearend. Another component impacting our year-end 

accounts payable balance included FCA’s focus on 

simplified acquisition processing during FY 2022. 

This process involved using purchase cards for 

acquisition of low-dollar-value items when appropriate. Since the purchase card payment transactions were not available in the financial system as 

of Sept. 30, we recorded an expense accrual for 

the September purchase card activity. Lastly, with 

the easing of COVID restrictions, we saw increased 

travel for agency staff. There was a lot of travel in 

September that was not vouchered as of Sept. 30 

and had to be accrued—these travel expense accruals were much higher in 2022 relative to 2021.

Accrued liabilities decreased by $766,036 from 

Sept. 30, 2021, to Sept. 30, 2022. This decrease is 

primarily due to a decrease in the funded leave 

liability accrual. With the easing of COVID-19 

restrictions, staff used more leave (vacation time) 

in 2022; as a result, leave balances were lower at 

fiscal year-end 2022. 

Our net position, which represents the cumulative 

results of operations since the agency began, increased by $3,273,759, or 14.4%, during FY 2022. 

The net position increased primarily because of 

the decrease in the net cost of operations (see the 

Program costs and revenues section). For a breakdown of the net position, see the statement of 

changes in net position on page 60.

FCA’s status of funds

Our budget represents our plan for achieving our 

mission and strategic goals while operating as effectively and efficiently as possible. Table 5 shows 

our board-approved budget amounts for FYs 2022 

and 2021. The overall FY 2022 budget increased by 

4.9% over the 2021 budget.

In FY 2022, we continued to carry out our mission, 

program goals, and objectives within the available 

budget. Our board-approved budget for FY 2022 

was approximately $84.8 million, and the congressional limitation on our spending was $84.2 

million. The FY 2021 congressional limitation was 

$80.4 million. The congressional limitation is the 

spending limit imposed by Congress on the nonreimbursable activity portion of our budget for the 

year. It limits the amount of assessments that we 

may use to pay for administrative expenses. The 

limitation includes assessment amounts for the 

current year as well as assessment carryover from 

prior years.

Table 5. Agency budget

Budget funding sources FY 2022 FY 2021 Difference

Assessments (current year)* $82,700,000 $79,800,000 $2,900,000

Assessments (carryover from prior years) 1,500,000 600,000 900,000

Reimbursable activity 610,000 470,000 140,000

Total $84,810,000 $80,870,000 $3,940,000

* Assessments were reduced by $3.5 million in FY 2021. 
18 | FCA Performance and Accountability Report — 2022

The assessment funds we used in 2022 amounted 

to 97.1% of our congressional limitation in 2022 

(see table 6). 

As table 7 shows, the agency used $5,165,420 

more in 2022 than in 2021. Dollarwise, the largest 

increases were evenly split across personnel compensation and benefits, travel and transportation, 

and contractual services, with each increasing over 

$1 million. 

The largest increase in the three categories noted 

above was in personnel compensation and benefits, which increased by $1,614,156. This increase 

is the result of a combination of increases in staff 

and planned salary increases and promotions. 

Personnel compensation and benefits continue 

to account for the most significant use of funds at 

FCA, representing approximately 85.0% of the total 

funds used in 2022.

With the easing of COVID-19 restrictions, we saw 

a large increase in travel expenditures during 

FY 2022. As a result, funds used for travel in FY 

2022 increased by $1,045,825 from FY 2021. Funds 

used for travel remain well below pre-pandemic 

amounts. We expect to see continued increases in 

travel in FY 2023.

Dollars expended for contractual services increased by 24.0% over last year and represented 

approximately 9.0% of the total funds used in 2022. 

We increased our contractual services spending to 

meet agency needs for security, data analytics, and 

training. 

Program costs and revenues

This section describes our program costs and 

revenues for the fiscal years ended Sept. 30, 2022, 

and Sept. 30, 2021. Please read this section in conjunction with the statements of net cost. Because 

this section focuses on the cost of operations, some 

of the data provided here may differ from data 

Table 6. Funds used based on congressional limitation

Funds used category 2022 Funds used Congressional 

limitation

Percentage used

Assessment funds used* $81,731,269 $84,200,000 97.1%

* Includes amounts used from current year assessed amounts and assessment carryover amounts used to fund the budget.

Table 7. Funds used by major budget category

Budget category FY 2022 FY 2021 Percentage change

Personnel compensation and benefits $69,787,360 $68,173,204 2.4%

Travel and transportation 1,227,308 181,483 576.3%

Contractual services 7,408,731 5,974,237 24.0%

Property and equipment 1,047,012 497,791 110.3%

Other 2,616,212 2,094,488 24.9%

Total* $82,086,623 $76,921,203 6.7%

* The total funds used include reimbursable activity that is not subject to the congressional limitation.
FCA Performance and Accountability Report — 2022 | 19

provided in sections of this report that are based 

on budgetary accounting.

Another difference that arises when we assess our 

program costs relative to our performance goals 

and measures is with goal 3, which relates to workforce management. Costs to address workforce 

management are intrinsic to our main goals of 

public mission and safety and soundness and are 

captured as part of those goals. For purposes of 

the performance budget and costs, goal 3 is related 

to our reimbursable activity. We track these costs 

separately from the mission costs noted in goals 1 

and 2.

We achieve our strategic goals and manage our 

costs with sound business planning and effective 

resource management. The net cost of our programs totaled $3,240,792 for the 12 months ended 

Sept. 30, 2022, compared with $6,631,531 for the 

same period the previous year. While both revenue 

and expenses increased this past year, the rate of 

increase in revenue outpaced expenses, resulting 

in a net cost decrease of $3,390,739 from 2021. 

The total cost of our programs for FY 2022 is 

$86,523,580, compared with $83,667,255 for FY 

2021. This represents an increase of $2,856,326, or 

3.4%, from 2021. Figure 2 shows the breakdown of 

FY 2022 gross costs for each of our goals. Most of 

our costs support our mission and program goals. 

The increase in total costs is primarily due to increases in staff and employee compensation.

Employee salaries and benefits represent our 

greatest overall cost. For 2022, employee compensation totaled $72,661,004, or 84.0%, of total 

cost. Increases in staff, performance-based salary 

increases, employee benefits, career ladder promotions, and higher leave liability expenses all 

contributed to the cost increase in 2022. We recruit 

and train staff to fill vacancies in accordance 

with our employment and diversity strategies to 

meet operational challenges and evolving risks in 

the FCS, including Farmer Mac. We periodically 

perform compensation studies to comply with 

the Financial Institution Reform, Recovery, and 

Enforcement Act of 1989, which requires us to keep 

our salaries and benefits comparable with the salaries and benefits of other federal financial institution regulators. Keeping compensation competitive 

Figure 2. Percentage of FY 2022 gross costs by 

agency goal

Other 

0.7% 

Safety & 

soundness 

73.3%

Public mission 

26.0%

helps us continue to fulfill our mission to provide 

the FCS, including Farmer Mac, with effective regulation and oversight.

Figure 3 shows the breakdown of FY 2022 gross 

revenue allocated to each of our goals. Earned revenue for 2022 totaled $83,282,788, up $6,247,064, 

or 8.1%, from 2021. Earned revenue increased in 

2021 primarily because of increases in institution 

assessments.

Figure 4 shows the breakdown of our three sources 

of revenue—assessments, interest on investments, 

and reimbursable activity. As one would expect, 

most of our revenue is derived from assessments 

(99.3%). Those revenues are used to fulfill our primary goals of carrying out our public mission and 

ensuring the safety and soundness of the System.

Public mission program

We invest significant resources in our policymaking, regulatory, and corporate activity functions 

to ensure that the FCS, including Farmer Mac, 

fulfills its public mission as mandated by Congress. 

During FY 2022, we continued to ensure the safe 

and sound flow of funds to U.S. agriculture and 

rural areas by providing regulation, policy, and 

guidance for the FCS and Farmer Mac.
20 | FCA Performance and Accountability Report — 2022

Costs for our public mission program include the 

review of borrower complaints. In accordance with 

the Farm Credit Act, we also review and approve 

FCS institutions’ mergers to enable institutions to 

structure themselves to best serve their customers. 

For the fiscal year ended Sept. 30, 2022, the program cost for our public mission was $22,481,168, 

representing an increase of $2,271,889, or 11.2%, 

from the same period the previous year. The increase is primarily due to increases in staff and 

related salaries and benefits costs. The cost for the 

public mission program represents 26.0% of our 

total costs for 2022.

Safety and soundness program

Costs associated with the agency’s examination 

and supervision activities make up the largest 

portion of our expenditures at the program level. 

Like the public mission program, the cost of the 

safety and soundness program increased and for 

the same reasons—increases in staff and related 

compensation costs. 

We invest heavily in the recruitment and training of examination staff through our Examiner 

Commissioning Program. These recruiting and 

training efforts are necessary to meet human resource needs and to offset the impact of unplanned 

employee attrition and the large number of retirements expected within the next few years. These 

actions have enabled us to maintain our level of 

supervision of the FCS while we dealt with the 

lingering effects of the pandemic in the early part 

of the fiscal year. During FY 2022, we met our goals 

and performance targets to ensure the safety and 

soundness of the System. 

Program cost for the examination and supervision 

of the FCS and Farmer Mac increased $797,189 

to $63,424,321. Safety and soundness represents 

73.3% of our total costs in 2022.

Other activity

“Other activity” includes examining and overseeing the National Consumer Cooperative Bank and 

performing reimbursable services for USDA and 

the Farm Credit System Insurance Corporation. 

Costs associated with this category decreased by 

$212,753 from 2021 to $618,091. The costs for providing reimbursable services remain relatively low 

compared with the total costs for our public mission and safety and soundness goals. Other activity 

represented approximately 0.7% of our total costs 

in 2022.

Earned revenue for other activity totaled $322,832 

for 2022, compared with $467,605 for 2021, which 

Figure 3. Percentage of FY 2022 gross revenue by 

agency goal

Figure 3. Percentage of FY 2022 gross revenue by agency goal

Other 

0.4% 

Safety & 

soundness 

73.5%

Public mission 

26.1%

Figure 4. FY 2022 sources of revenue

Interest 

0.3% 

Assessments 

99.3%

Reimbursable 

0.4%
FCA Performance and Accountability Report — 2022 | 21

represents a decrease of $144,773. This decrease 

is due to a lesser amount of reimbursable services 

provided this year.

Limitations of financial statements

As required by 31 U.S.C. 3515(b), we have prepared 

the principal financial statements to report the 

financial position and results of our operations. We 

have prepared these statements from our books 

and records in accordance with U.S. generally 

accepted accounting principles for federal entities and the formats prescribed by the Office of 

Management and Budget. Reports used to monitor 

and control budgetary resources are prepared from 

the same records. 

As you read these statements, please keep in 

mind that they are for a component of the U.S. 

government.

Forward-looking analysis

In FY 2023, we will continue to fulfill our congressional mission: to ensure that Farm Credit System 

institutions and Farmer Mac are safe, sound, and 

dependable sources of credit and related services 

for all creditworthy and eligible persons in agriculture and rural America. 

As we stated in an October 3, 2022, informational 

memorandum about our National Oversight Plan, 

we will focus on the following areas when conducting examinations of System institutions in FY 2023: 

• Risk management practices in an uncertain 

environment

• Phaseout of the London Interbank Offered Rate

• Current expected credit losses implementation

• Young, beginning, and small farmer and rancher programs

• Standards of conduct

• Small, low-risk associations

On the regulatory front, we plan to issue several 

notices of proposed rulemakings and to finalize 

some previously proposed rules, including the 

proposed rule on cyber risk management. The fall 

regulatory projects plan, which will soon be available on the FCA website, provides a detailed list of 

the projects we expect to work on in FY 2023. 

In addition to overseeing the System, we will continue to monitor the general and farm economy 

for risks that may threaten System institutions and 

their borrowers. Current risks include tight labor 

markets, rising inflation, high farm input costs, 

and drought. We will continue to monitor the economy for these risks and others and to share our 

findings with the institutions we regulate.

FCA also addresses climate change in its day-to-day 

operations. Vonda Bell, our chief human capital 

officer and director of the Office of Agency 

Services, serves as our agency’s sustainability 

officer. She ensures that the agency has a comprehensive approach to identifying and mitigating 

environmental impacts. 
22 | FCA Performance and Accountability Report — 2022

Analysis of FCA’s Systems, Controls, and 

Legal Compliance

Strategy for FCA’s financial management 

system

We partner with the Department of the Treasury’s 

Bureau of the Fiscal Service to provide FCA with 

several financial management services. This 

shared-services approach helps us maximize efficiency while maintaining a high standard of financial management and accountability.

This partnership gives us access to core financial 

systems without our having to maintain the necessary technical and systems architectures. Our 

partnership with the Fiscal Service has also improved our data reliability, which helps us comply 

with a May 2015 memorandum from the Office of 

Management and Budget on increasing the transparency of federal spending by making federal 

spending data accessible, searchable, and reliable 

(OMB-15-12).

Through our partnership with the Fiscal Service, 

we use Oracle Federal Financials as our financial 

system of record. Oracle Federal Financials is a 

commercial, off-the-shelf software package, which 

is certified under the Joint Financial Management 

Improvement Program to meet federal government accounting requirements. This web-based 

software integrates our key activities, such as 

e-payroll, e-travel, purchase card activity, and federal investments.

Although we perform all procurement activities 

in house, we partner with the Fiscal Service for 

procurement system services and support. The 

procurement system is fully integrated with Oracle 

Federal Financials. This integration enables us to 

check our funds in real time and to commit and 

obligate funds as transactions are approved.

By working with the Fiscal Service, we comply with 

the OMB Financial Management Line of Business 

initiative, which encourages agencies to improve 

the cost, quality, and performance of financial 

management systems by using shared services. 

Collaborating with the Fiscal Service also helps us 

achieve our perennial goal of improving financial 

management; the collaboration ensures that our 

financial systems are up to date and in compliance 

with the latest guidance from the Treasury and 

OMB. We continue to work on streamlining our 

business processes to ensure efficient and effective 

financial management operations. 

Federal Managers’ Financial Integrity Act

The Federal Managers’ Financial Integrity Act 

(FMFIA) requires federal agencies to establish and 

maintain a system of internal control to achieve 

the objectives of effective and efficient operations, 

reliable financial reporting, and compliance with 

applicable laws and regulations. 

The management control objectives under the 

FMFIA are to reasonably ensure that our

• obligations and costs comply with applicable 

laws;

• assets are safeguarded against waste, loss, unauthorized use, or misappropriation; and

• revenues and expenditures are properly recorded and accounted for. 

Agencies must evaluate and report on the effectiveness of their internal controls and assess whether 

their financial management systems comply with 

requirements outlined in section 4 of the FMFIA.

As a federal agency, we ensure our compliance 

with the FMFIA through our financial management 

system strategy, internal control program, and 

compliance with applicable laws and regulations.
FCA Performance and Accountability Report — 2022 | 23

Internal control program

We have established internal controls to meet the 

objectives of section 2 and section 4 of the FMFIA. 

Our system of internal control conforms with the 

Government Accountability Office’s Standards for 

Internal Control in the Federal Government (Green 

Book). 

Our internal controls are designed to provide reasonable assurance that transactions are properly 

recorded, processed, and summarized so that we 

can prepare financial statements accurately and 

safeguard our assets.

Our program offices are responsible for implementing and maintaining effective risk management practices and internal controls to ensure the 

following:

• Alignment of strategic goals with the agency’s 

mission.

• Effective and efficient operations.

• Reliable reporting. 

• Compliance with applicable laws and 

regulations. 

We conduct risk-based internal control assessments in accordance with OMB Circular A-123, 

Management’s Responsibility for Enterprise Risk 

Management and Internal Control, and applicable 

appendices. Based on the results of the assessments, we have reasonable assurance that controls 

over operations, reporting, and compliance with 

laws and regulations are designed and operating 

effectively. 

In addition, our independent financial statement 

auditor reported that we maintained effective 

internal control over financial reporting and compliance with applicable laws and regulations. The 

auditor did not report any material weaknesses or 

significant deficiencies. 

Prompt Payment Act

We follow the Prompt Payment Act guidelines, 

which call for vendors generally to be paid 30 days 

after we receive a valid invoice for the goods and 

services we’ve received.

During FY 2022, we paid on time 99.9% of the 

1,849 invoices subject to the Prompt Payment Act. 

Payments are made by electronic funds transfer 

through the Secure Payment System.

Debt Collection Improvement Act

The Debt Collection Improvement Act of 1996 prescribes standards for carrying out federal agency 

collection actions and for referring an agency’s 

uncollectible debts to the proper federal agency for 

collection and litigation. The act has no material 

effect on us because we operate with virtually no 

delinquent debt.

This act was amended by the Digital Accountability 

and Transparency Act of 2014 (DATA Act) to require 

that debts outstanding for more than 120 days 

be transferred to the Treasury Department for 

collection under the Treasury Offset Program. We 

have transferred applicable debt to the Treasury 

Department. 

Improper payments

The Payment Integrity Information Act of 2019 

requires executive branch agencies to identify 

programs and activities that may be susceptible to 

significant improper payments, conduct risk assessments to determine risk factors that are likely 

to contribute to a susceptibility to significant improper payments, estimate annual improper payment amounts in the susceptible programs, and 

report on actions to recover improper payments. 

Additional information on our improper payment activities are reported under “Payment 

Integrity Information Act Reporting” in the “Other 

Information” section of this report. 

Digital Accountability and Transparency 

Act 

The DATA Act was enacted to increase accountability and transparency in federal spending and 

expand the requirements of the Federal Funding 

Accountability and Transparency Act of 2006. Since 
24 | FCA Performance and Accountability Report — 2022

our agency does not receive federal tax dollars, 

OMB has determined that FCA is not subject to the 

reporting requirements of the DATA Act. 

Inspector General Act

The Inspector General Act of 1978, as amended, 

requires inspectors general to report to their 

agency heads and to Congress every six months. 

The semiannual reports prepared by FCA’s Office 

of Inspector General (OIG) describe its audits, 

inspections, evaluations, investigations, and other 

oversight activities.

The FCA OIG posts all audit, inspection, and evaluation reports on its website within three business 

days of final submission to the FCA board. These 

reports are also posted on Oversight.gov, which 

contains OIG reports from across the federal 

government.

Below is a summary of the recommendations in 

these reports, as well as our progress in taking corrective action. 

Summary of OIG audit, inspection, and 

evaluation activities

OIG issued seven audit, inspection, or evaluation 

reports during FY 2022, resulting in 27 new recommendations. At the beginning of FY 2022, four 

recommendations remained open from prior fiscal 

years. Over the course of FY 2022, 14 of the 31 open 

recommendations were closed. As of Sept. 30, 

2022, 17 remained open. The reports are available 

on the FCA OIG’s website at www.fca.gov/about/inspector-general-plans-and-reports. OIG issued the 

following reports in FY 2022.

• FCA’s Compliance with the Federal Information 

Security Modernization Act for Fiscal Year 

2021 (Oct. 27, 2021): The audit produced three 

recommendations.

• FCA’s Financial Statements (Nov. 10, 2021): The 

audit produced no recommendations.

• FCA’s Property Management Program (Dec. 

7, 2021): The inspection produced nine 

recommendations.

• FCA’s Compliance with the Payment Integrity 

Information Act of 2019 for Fiscal Year 2021 

(March 23, 2022): The inspection produced no 

recommendations.

• FCA’s Enterprise Risk Management and Internal 

Control Program (June 9, 2022): The audit produced eight recommendations. 

• FCA’s Compliance with the Federal Information 

Security Modernization Act for Fiscal Year 

2022 (July 25, 2022): The audit produced two 

recommendations.

• FCA’s External Communication Process 

(Aug. 2, 2022): The inspection produced five 

recommendations. 

Summary of OIG recommendations

Open recommendations as of Oct. 1, 2021 4

New recommendations during FY 2022 27

Recommendations closed during FY 2022 14

Open recommendations as of Sept. 30, 2022 17

Recommendations open more than one year 2

OIG survey of FCS institutions regarding the 

agency’s examination function

OIG conducts a quarterly survey of FCS institutions 

on the agency’s examination function. It issues 

reports on the survey results to the FCA chief examiner and the FCA board. In FY 2022, OIG issued 

the following survey reports:

• Second through Fourth Quarters and Summary 

Report Fiscal Year 2021 (Jan. 21, 2022) (OIG did 

not conduct a survey for the first quarter of 2022 

because of the COVID-19 pandemic.)

• First and Second Quarters Fiscal Year 2022 (July 

18, 2022)
FCA Performance and Accountability Report — 2022 | 25

Statement of Assurance

The Farm Credit Administration’s management is responsible for managing risks and maintaining effective internal control and financial management systems that meet the objectives of sections 2 and 4 of the 

Federal Managers’ Financial Integrity Act (FMFIA).

FCA has considered risk management practices in the design of internal controls and in the assessment 

of their effectiveness. We conducted our assessment of risk and internal controls in accordance with 

OMB Circular A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control. 

Based on the results of this assessment, we can provide reasonable assurance that the internal controls 

over financial reporting and operational and compliance objectives were operating effectively as of Sept. 

30, 2022. No material weaknesses were found in the design or operation of the internal controls.

As part of our evaluation process, we considered the results of extensive testing and assessment across 

the organization, as well as independent audits, to provide our unmodified statement of assurance. 

Vincent G. Logan

Board Chairman and Chief Executive Officer 

FARM CREDIT ADMINISTRATION

November 8, 2022
26 | FCA Performance and Accountability Report — 2022

Program Performance

This section discusses FCA’s performance in achieving 

the goals and strategic objectives identified in the 

agency’s Strategic Plan for Fiscal Years 2018–2023. 

This section also details the actions we are taking 

to achieve our goals and the targets we are using to 

measure our success. 

We use the June 30 end date for reporting on 

operational performance measures because the 

information statements for the fourth quarter 

arrive after the November submission deadline for 

this report. However, for goal 3, which relates to 

workforce management, we report the results for the 

federal fiscal year, as of Sept. 30, 2022. 
FCA Performance and Accountability Report — 2022 | 27

FCA Performance Report

FCA’s mission is to ensure that Farm Credit System 

institutions and Farmer Mac are safe, sound, and 

dependable sources of credit and related services 

for all creditworthy and eligible persons in agriculture and rural America.

We fulfill our mission by (1) issuing regulations 

and implementing public policy and (2) identifying 

risk and taking corrective action. The FCA board 

has adopted three strategic goals:

• Ensure that the FCS and Farmer Mac fulfill their 

public missions for agriculture and rural areas.

• Evaluate risk and provide timely and proactive 

oversight to ensure the safety and soundness of 

the System and Farmer Mac.

• Cultivate an environment that fosters a welltrained, motivated, and diverse staff while 

providing an effective plan for leadership 

succession.

Our Strategic Plan for Fiscal Years 2018–2023 contains a desired outcome for each goal, as well as 

19 strategies we are using to meet these goals. In 

addition, we have 14 performance measures with 

associated targets to measure our success in meeting our goals.

The strategic plan addresses the changing environment facing agriculture: commodity and input 

price volatility; sustainability, environmental, food 

safety, and animal welfare issues; fluctuating interest rates and land values; diversity; and pressure 

to reduce the subsidies and support payments that 

were provided in the 2018 Farm Bill.

The plan focuses on helping the agency operate 

effectively and efficiently; minimizing costs for FCS 

borrowers and Farmer Mac customers; and helping ensure a safe, sound, and dependable source of 

credit and financially related services for agriculture and rural America.

Data validation and verification

FCA ensures the completeness, reliability, and 

quality of all reported information included in this 

report by validating the performance data and other information contained in this section. 

Our validation and verification process includes 

the following:

• Using applied measurement techniques to identify sources, validate data, and generate meaningful information.

• Identifying and implementing authoritative 

sources, calculations, and standards.

• Using automated data collection systems and 

reporting whenever available.

• Using automated data checking procedures in 

addition to manual verification.

• Analyzing data and identifying possible discrepancies for resolution.

• Implementing controls, such as restricting permissible values, flagging outliers for review, and 

visually checking results in the development 

stages of dashboards and reports.

• Requiring data owners and users to review data.

• Consolidating and deploying enterprise tools for 

standardized reporting.

• Performing independent quality assurance reviews before issuing reports.

• Reviewing and discussing performance results 

with the executive leadership team.

Goals

As our performance results show, we succeeded 

in meeting the three strategic goals described below. Summary tables that follow the goals outline 
28 | FCA Performance and Accountability Report — 2022

our performance measures and results. Each 

goal reflects our mission of ensuring that Farm 

Credit System institutions and Farmer Mac are 

safe, sound, and dependable sources of credit and 

related services for all creditworthy and eligible 

persons in agriculture and rural America. The performance measures and targets were established 

in the FCA Strategic Plan Fiscal Years 2018–2023.

Goal 1—Ensure that the FCS and Farmer Mac 

fulfill their public missions for agriculture and 

rural areas.

In our Strategic Plan for Fiscal Years 2018–2023, we 

established this goal to meet the credit and related 

financial service needs of agricultural producers 

as the agricultural industry changes. Agricultural 

production and processing methods are evolving 

and becoming more integrated. The demographics 

of farmers and agricultural producers are gradually changing. The varieties and types of food and 

fiber production continue to grow. Trends, such as 

heightened demand for locally grown and specialty 

foods, and the growth in urban agriculture, are 

creating additional options for persons interested 

in becoming farmers, ranchers, and agricultural 

suppliers and distributors. 

The purpose of goal 1 is to maximize the ability of 

the FCS and Farmer Mac to fulfill their purposes 

and meet their public missions as defined by 

Congress in the Farm Credit Act of 1971, as amended. We established nine strategies to accomplish 

this goal, and we defined six performance measures to evaluate our progress and success. 

Goal 1, Strategy 1: Ensure that the capital rules for 

the FCS and Farmer Mac are consistent with standards for the financial service industry and preserve

their financial strength and stability so they can

meet the credit needs of eligible borrowers.

The FCA board adopted a final rule in March 2016 

that revised our capital rules for FCS banks and 

associations and provided clearly defined capital 

standards that are both consistent with Basel III 

and appropriate for the farmer-owned cooperative 

Farm Credit System. 

BASEL refers to the Basel Committee on Banking Supervision, located in Basel, Switzerland, 

where the Bank for International Settlements is 

headquartered. This committee’s primary job

is to produce guidelines for financial regulators

of the G-20 countries, with the goal of aligning 

regulatory rules around the world. FCA is not 

required to comply with BASEL guidelines, but 

we consider them in all rulemakings. BASEL I, II, 

and III represent the various significant changes

or iterations in capital guidelines.

In FY 2016, we issued the capital planning rule 

requiring an annual assessment of Farmer Mac’s 

capital plan, including capital adequacy modeling 

and stress testing methodologies.

The tier 1/tier 2 capital framework is defined in

BASEL III and in FCA regulations. Tier 1 capital 

represents the highest-quality capital included 

in regulatory capital ratios. Tier 2 represents the 

lower-quality capital included in the ratios.

In FY 2017, we updated our Financial Institution 

Rating System (FIRS) benchmarks for capital 

and our examination guidance and examiner 

training to ensure that FCS institutions implement the capital rules properly. We also issued 

an informational memorandum to the System 

titled “Implementation of the Tier 1/Tier 2 Capital 

Framework.” 

In FY 2019, we issued guidance on Farmer Mac’s 

interest rate risk management. The guidance 

makes clear the board of directors’ ultimate responsibility for governance of interest rate risk and 
FCA Performance and Accountability Report — 2022 | 29

management’s role in the design and execution of 

measurement systems for interest rate risk. 

In FY 2021, we issued a final rule that clarified numerous provisions of the 2016 capital regulations 

and codified certain guidance.

In FY 2022, we revised the 2016 guidance to align 

with the revisions in the 2021 rule.

Goal 1, Strategy 2: Within the framework of the 

Farm Credit Act, develop and update policies and 

regulations as appropriate so that the System, 

including Farmer Mac, can continue to effectively

serve its members as conditions in agriculture and 

rural America change.

The following actions are examples of ways we 

have used this strategy in FY 2022:

• Issued guidance to the System on FCA’s expectations regarding due diligence and best practices 

in the governance and management of wholesale funding.

• Issued a final rule governing the standards of 

conduct for System institutions.

• Issued a final rule governing the implementation of the current expected credit losses model 

in determining the allowance for loan losses.

• Issued a final rule to clarify numerous provisions of the tier 1/tier 2 capital framework and 

issued guidance to the System that incorporated 

those clarifications. 

• Issued a proposed rule governing the 

risk-weighting of high-volatility commercial real 

estate collateral evaluations.

• Issued a proposed rule governing the appointment of the Farm Credit System Insurance 

Corporation as conservator and receiver of distressed System institutions.

• Issued a proposed rule governing the funding 

banks’ oversight of lending and nonlending 

activities to serve young, beginning, and small 

farmers and ranchers. 

• Continued to study the loan syndication market.

As part of every rulemaking project, we consider 

ways to reduce the burden of existing rules and to 

minimize the regulatory burden of the rule being 

proposed. Also, we regularly solicit public comments on regulations that are unnecessary, unduly 

burdensome, or not based on law; our most recent 

solicitation was in July 2022. We plan to address the 

comments from this solicitation in FY 2023.

We routinely provide guidance to System institutions to protect their safety and soundness and to 

help them manage risk. This guidance facilitates 

the flow of funds to agriculture and rural areas by 

providing System institutions with sound practices 

to follow in developing and implementing lending 

programs. We also provide guidance related to 

internal controls and information technology. 

Ultimately, our guidance helps institutions manage 

loan and funding programs more efficiently. 

Farmer Mac continues to enhance its relationships 

with its loan sellers, servicers, and other business 

partners by holding informational forums, providing updates to its formal servicing guidelines, 

and performing internal credit reviews. Our Office 

of Secondary Market Oversight evaluates Farmer 

Mac’s efforts to strengthen these relationships.

We support advances in Farmer Mac’s product 

offerings within the bounds of safety and soundness and the provisions of the Farm Credit Act. 

Our communication, examination reports, and 

off-site monitoring of Farmer Mac provide timely 

guidance on the possible risks associated with new 

products and policies. Over the reporting period, 

we provided Farmer Mac with guidance on regulatory compliance issues, policy direction, and questions regarding new products and services.

In addition, we continue to advance regulatory 

rulemaking projects on topics related to capital 

and margin and liquidity reserve requirements. We 

are also working to enhance our data management 

and collection and to update other areas of supervisory guidance.
30 | FCA Performance and Accountability Report — 2022

Goal 1, Strategy 3: Emphasize the public purpose 

and mission-related responsibilities of the agricultural government-sponsored enterprises (GSEs) 

to serve all of agriculture and rural America. This 

includes innovative programs for serving the credit 

and related service needs of young, beginning, and 

small (YBS) farmers, ranchers, and producers and 

harvesters of aquatic products.

FCA examiners evaluate the operating and strategic plans and the credit delivery programs of 

System institutions. We also evaluate System 

outreach efforts and best practices for serving the 

credit and related service needs of all creditworthy, 

eligible customers.

In addition, our examiners evaluate each institution’s YBS farmer and rancher program relative to 

the demographics of its chartered territory. These 

evaluations help examiners identify trends in lending to YBS farmers and ranchers and assess the 

System’s efforts to provide financial and business 

management assistance and outreach to YBS farmers and ranchers. 

Over the past several years, FCA has worked with 

the System to improve management, monitoring, 

data quality, and reporting of this critical segment 

of the market. FCA published a proposed rule in 

the Federal Register on June 16, 2022, and we are 

currently considering the comments submitted. 

We expect this rule to lead to the creation of a 

rating system that evaluates each institution’s program and measures its year-over-year progress in 

lending and nonlending support to the YBS population in its territory.

When evaluating YBS programs, we continue to 

assess the extent to which FCS institutions use loan 

guarantee programs. We encourage System institutions to work with federal and state agencies that 

offer such programs. For example, we encourage 

institutions to meet the requirements to qualify for 

the USDA Farm Service Agency’s “preferred lender” status.

Not only can loan guarantees help institutions 

manage credit risk, they also help borrowers obtain the funding they need. We encourage System 

institutions to use loan guarantees to make loans 

to YBS borrowers with limited financial capacity 

and to existing borrowers with temporary financial 

difficulties.

We validate compliance with YBS laws and regulations through our risk-based oversight and 

examination processes as described in Goal 2, 

Strategy 3. During the reporting period covered in 

this document, all the YBS programs we evaluated 

complied with YBS regulations. Each year, we 

survey FCS associations regarding their YBS programs. With the information received, we prepare 

a YBS annual report that we publish in our Annual 

Report on the Farm Credit System.

FCA regulations require each direct-lender System 

institution to include in its operating and strategic 

business plan a marketing plan with strategies for 

providing the institution’s products and services 

to all creditworthy and eligible persons in its territory. During the reporting period covered in this 

document, all FCS institutions we evaluated had 

adequate marketing plans to provide products and 

services to all creditworthy and eligible persons. In 

addition, each institution must report annually to 

its board of directors on the progress it has made 

in this area. We review these reports and evaluate 

the System’s progress in meeting this requirement. 

As part of our examination activities, we also 

review institution annual reports and encourage 

institutions to include a discussion of how they are 

meeting their mission.

We evaluate the extent to which Farmer Mac has 

accomplished its mission as well. Farmer Mac’s 

customer base includes financial institutions and 

other lenders that seek a secondary market for 

their agricultural, rural housing, and rural utility 

cooperative loans. We evaluate Farmer Mac’s performance in reaching out to all potential customers and in creating easy access to its services.

Farmer Mac submits an annual mission report to 

FCA. This report includes data on Farmer Mac’s 

participation in federal guarantee programs, the 

geographic distribution of Farmer Mac’s program 

business, the proportion of fixed-rate versus variable-rate loan volume, and activity related to rural 

utilities. In addition, the report highlights activity 

related to small and family farms, which Farmer 

Mac is required by statute to promote and encourage. These reporting requirements encourage 
FCA Performance and Accountability Report — 2022 | 31

Farmer Mac’s business development staff to focus 

on the credit needs of small and family farms 

when working with its lender customers.

Goal 1, Strategy 4: Encourage the System to provide products and services to all creditworthy and 

eligible potential borrowers and to promote outreach to enhance diversity and inclusion.

Our examinations assess the System’s efforts to 

provide financial or business management assistance and outreach to all creditworthy, eligible customers, including YBS farmers and ranchers. The 

System continues to implement programs to meet 

the needs of YBS producers and other borrowers.

The business plan of each direct-lender institution 

must include strategies and actions to market the 

institution’s products and services to all eligible 

and creditworthy persons and to strive for diversity and inclusion within each market segment. 

We evaluate the System’s progress in meeting this 

requirement.

In addition, we review inquiries and complaints 

from applicants, borrowers, and other members of 

the public about the lending process, and we investigate any allegations of discrimination. During the 

reporting period from July 1, 2021, through June 

30, 2022, we responded to 19 such inquiries. Our 

investigations did not discover any pattern or practice of deliberate discrimination or an unwillingness of FCS institutions to serve eligible customers 

within their chartered territories. We also found 

that System institutions continued to comply with 

equal credit opportunity and equal housing laws. 

Our examinations did not identify any institution 

with significant weaknesses in complying with federal lending and borrower rights regulations. 

We are also concerned about the needs of farmers 

with disabilities and farmer veterans. In previous 

years, we have held presentations on these topics 

to raise awareness among our staff about the challenges these individuals face. In 2016, members of 

our staff met with the USDA undersecretary to discuss ways to better meet the credit needs of farmer 

veterans.

To ensure that Farmer Mac meets its responsibility 

to promote and encourage the inclusion of small 

and family farms in its programs, we have developed certain reporting requirements. We also provide Farmer Mac with feedback on various issues, 

including loan eligibility for prospective new lines 

of business.

Farmer Mac continues to work to make its programs accessible to all market participants, including those involved in rural utilities and federal 

agricultural loan guarantee programs. It seeks to 

ensure equitable treatment of all potential borrowers and the lenders that serve them. 

During examinations, we review loans purchased 

and guaranteed by Farmer Mac to ensure that 

their underwriting, loan-approval standards, and 

servicing are appropriate and consistent with established guidance. Further, Farmer Mac’s annual 

mission report includes a section about its financing of small and family farmers and rural utility 

cooperatives.

FCA Bookletter (BL-066) “Providing Credit to 

Farmers and Ranchers Operating in Local/Regional 

Food Systems” encourages System associations to 

meet the credit and related service needs of farmers who market their agricultural products through 

local and regional food systems. It explains that 

System associations have authority to finance 

local-food farmers and certain farm-related businesses under existing statutes and regulations and 

under prior FCA guidance. The bookletter also provides guidance on how the regulations on strategic 

business planning apply to financing local-food 

farmers (including those operating in urban areas).

Goal 1, Strategy 5: Encourage diversity on the 

boards and in the workforce of System institutions.

Our oversight and examination programs periodically evaluate each institution’s human capital 

planning, director elections, and nominating committees. Examination guidance and procedures 

consider any significant changes in bylaws, policies, control systems, staffing, board membership, 

board involvement, election processes, or issues 

related to standards of conduct. As part of our review of the nominating committee’s processes and 

practices, we evaluate the committee’s outreach 
32 | FCA Performance and Accountability Report — 2022

efforts to expand diversity on the board. In 2018, 

we updated examination guidance on this topic.

As part of the review of human capital management, we may evaluate conditions such as staff 

turnover or changes in key personnel (actual or 

upcoming), depth of management, changes in 

compensation and benefit programs or levels, 

involvement of the compensation committee, and 

the extent of operational weaknesses cited in audit, 

review, and examination reports that could be connected to human capital issues.

Goal 1, Strategy 6: Consistent with the Farm Credit 

Act, enable the agricultural GSEs to structure 

themselves to best serve their members and rural 

America.

FCA analyzes and approves periodic requests by 

institutions to restructure or offer new programs 

designed to better serve their customers. 

During 2022, FCA approved two mergers: one 

merging two associations affiliated with CoBank 

and another merging two associations affiliated 

with AgriBank. Also, during 2022, FCA approved 

the voluntary liquidation and loan portfolio sale of 

an association affiliated with AgriBank. 

At fiscal year-end 2022, the System had 64 

associations. 

Goal 1, Strategy 7: Encourage System institutions 

to be conscious of the reputation risk associated 

with their lending and investments decisions.

We issue guidance on business planning, capital 

management, portfolio risk management, debt 

issuance, secondary liquidity sources, and related 

topics. We also work with Systemwide committees 

and groups to discuss challenges, opportunities, 

and best practices in these areas. Further, we 

assess System institutions’ use of programs undertaken jointly with other financial service providers. 

Through our supervisory and enforcement activities, we require institutions to develop plans to 

address any potential reputation risks associated 

with their lending and investment decisions.

Goal 1, Strategy 8: Promote public trust in FCA’s

regulatory framework for the System and Farmer 

Mac by developing policy guidance that supports 

mission achievement, financial stability, and

transparency.

We promote public trust and investor confidence 

by helping ensure that the System and Farmer Mac 

meet their missions to serve agriculture and rural 

America. See strategies 2 and 3 for a discussion 

of some of the ways we have helped them achieve 

their missions.

We provide guidance to System institutions to help 

them better understand their lending authorities 

and, therefore, to more appropriately market 

their products and services to prospective eligible customers. We also publish our semiannual 

Regulatory Projects Plan on our website to notify 

the public of upcoming regulatory actions so that 

the public may participate in the regulatory process. Our e-government program allows the public 

to make comments in electronic format and to 

review comments from others on our website.

We further support public trust and investor confidence by reviewing inquiries and complaints about 

the loan-granting process and by investigating 

any allegations of discrimination. See strategy 4 

above for more information about inquiries and 

complaints from applicants, borrowers, and other 

members of the public.

Farmer Mac, too, has increased its focus on its 

public mission. Its year-end annual report and 

Form 10-K filing now include numerous references 

to its public mission, including a discussion of 

how pursuing its mission may contribute to lower 

returns to stockholders. Farmer Mac actively oversees its sellers/servicers, ensuring that loans sold 

into the secondary market meet its underwriting 

standards and that processes are in place to detect 

fraud and operational errors.

The guidance we have provided has had a positive 

impact on Farmer Mac’s public disclosures related 

to its mission, and we will continue to encourage Farmer Mac to regularly disclose its mission 

accomplishments.
FCA Performance and Accountability Report — 2022 | 33

Goal 1, Strategy 9: Encourage full participation of 

stakeholders in the development and review of regulatory and policy proposals as appropriate.

We encourage stakeholders to provide input on 

regulatory proposals before we issue rules. We 

publish our semiannual Regulatory Projects Plan 

on our website to notify the public of upcoming 

regulatory actions. In addition, our e-government 

program allows the public to make comments in 

electronic format and to review comments from 

others on our website.

Where practicable, we solicit input from stakeholders before we publish rules for comment. In 

some cases, we use advance notices of proposed 

rulemaking to obtain input. In almost all cases, we 

publish our proposed rules with comment periods 

of at least 60 days. For regulatory proposals that relate to the System’s GSE mission, we also reach out 

to nontraditional commenters for their input.

Goal 2—Evaluate risk and provide timely and 

proactive oversight to ensure the safety and 

soundness of the System and Farmer Mac.

In our Strategic Plan for Fiscal Years 2018–2023, we 

included this goal to ensure that FCA, the System, 

and Farmer Mac can manage data to operate effectively. As the System continues to consolidate and 

institutions become larger and more sophisticated, 

our ability to effectively examine and monitor risk 

becomes even more critical. 

To accomplish goal 2, we examine and supervise 

each System institution and Farmer Mac. We have 

six strategies to accomplish this goal and six performance measures to evaluate our success.

Goal 2, Strategy 1: Seek early FCA board input on 

policy and regulatory issues. Ensure that the board 

has timely and comprehensive information to be 

fully informed and able to respond appropriately.

The FCA board provides early input on regulatory and policy projects. For regulatory projects, 

the board provides input before and during the 

development and approval of the semiannual 

Regulatory Projects Plan, which outlines our regulatory agenda. For policy projects, the board also 

provides early input; a policy project may produce 

a guidance document, or it may eventually become 

a regulatory project.

After we’ve started a regulatory or policy project, 

board involvement continues to be crucial. We obtain board input by providing board briefings and 

monthly progress reports throughout the project.

The Office of Examination and the Office of 

Secondary Market Oversight report important 

issues at least monthly or as needed to the FCA 

board. The Office of Examination delivers reports 

to the board each quarter on the condition of the 

System. The Office of Secondary Market Oversight 

delivers periodic reports to the board on the condition of Farmer Mac. 

Goal 2, Strategy 2: Maintain strong and frequent 

two-way communication with stakeholders on issues of risk and safety and soundness.

FCA management and staff participate regularly in 

FCS meetings and conferences to answer questions 

related to regulatory and FCS operational issues. 

We also use these opportunities to reinforce our 

expectations regarding these issues and to discuss 

new regulatory direction. FCA staff members also 

participate in agencywide workgroups and FCSwide committees and groups to discuss challenges, 

opportunities, and best practices.

Our approach to oversight and examination involves meeting with institution boards and audit 

committees on the risks facing their institutions, 

examination activities, and corrective actions. 

Through direct interaction with System institutions, we hear about emerging issues and acquire 

a systemic view of issues warranting regulatory attention. Our oversight and examination approach 

also involves timely written communication 

through interim activity letters and examination 

reports. We also regularly communicate with FCS 

management on upcoming examination practices 

that may affect their institutions.

Annually, we issue an informational memorandum on our National Oversight Plan in which we 

identify focus areas that we will emphasize in 

our examination and oversight of System institutions. Likewise, we issue an annual informational 
34 | FCA Performance and Accountability Report — 2022

memorandum to Farmer Mac identifying the focus 

areas of the current examination cycle. These 

informational memorandums provide perspective 

on our concerns and priorities. When needed, we 

use the supervisory and enforcement process to 

require institutions to take appropriate action. In 

addition, we review borrower inquiries and complaints about the lending process and investigate 

any allegations.

Goal 2, Strategy 3: Continue proactive oversight of 

institution-specific and systemic risks.

We proactively identify and evaluate emerging 

issues that create Systemwide risk and allocate 

oversight and examination resources based on 

that risk. The amount of examination resources we 

devote to a System institution and the scope of our 

oversight and examination depend on the institution’s ability to identify and manage its risks. We 

increase oversight and examination efforts and implement supervisory or enforcement actions when 

institutions prove unable or unwilling to address 

material unsafe and unsound practices or to comply with law and regulations. See policy statement 

53 for more about our examination philosophy.

FCA continues to develop individualized oversight and examination plans for each institution. 

Another key element of our approach is the national oversight planning process. This process 

identifies emerging risks and guides our efforts to 

ensure the safety and soundness of the System. We 

manage and update this process on a regular basis. 

We also provide information to System institutions 

on how we examine them.

Through examinations, we routinely evaluate 

the operations and risk management practices of 

System institutions, and we share our conclusions 

and recommendations with System boards of 

directors. We determine whether FCS institutions 

have internal control systems and processes to 

manage their operations and loan portfolios, and 

whether direct-lender institutions have systems 

that allow them to properly assess the loans and 

risk exposures in their portfolios. 

With one exception, institutions had adequate 

internal control programs or adequate corrective 

actions in place in FY 2022. In the case of the 

exception, the institution’s corrective action plan 

was not adequate to resolve weaknesses in its 

internal control program. The institution’s board 

and management are developing a new corrective 

action plan to address and resolve the identified 

weaknesses more effectively. Overall, we have 

found that FCS institutions have adequate lending 

systems in place and that they continue to enhance 

these systems. 

The FCS uses a two-dimensional credit risk rating 

system, consisting of a 14-point scale to measure 

each borrower’s probability of default and a set of 

ratings to measure the loss given default for each 

loan. The FCS enhances this system through periodic refinements, and we closely evaluate those 

refinements. The System also performs database 

querying and stress testing. We consider the following elements when we examine loan portfolios:

• Management of risk concentrations

• Loan underwriting

• Collateral risk management

• Portfolio planning and analysis

• Credit administration

• Risk identification

Goal 2, Strategy 4: Effectively remediate weakened

institutions.

We use a risk-based supervisory and enforcement 

program to respond differentially to the risks and 

particular oversight needs of FCS institutions. If we 

discover unacceptable threats to safety and soundness or lack of compliance with laws and regulations, we take action to ensure that the institution 

mitigates identified risks appropriately. Corrective 

actions may include reducing risk exposures or 

improving the institution’s ability to bear risk by 

increasing capital and enhancing earnings, complying with applicable laws and regulations, and 

strengthening risk management.

We use a three-tiered supervision program: normal 

supervision, special supervision, and enforcement 
FCA Performance and Accountability Report — 2022 | 35

actions. Institutions under normal supervision 

are performing in a safe and sound manner and 

operating in compliance with applicable laws and 

regulations. These institutions are able to correct 

identified weaknesses in the normal course of 

business.

For those institutions displaying more serious or 

protracted weaknesses, we shift from normal to 

special supervision, and our examination oversight 

increases accordingly. Under special supervision, 

we give an institution clear and firm regulatory 

guidance to address weaknesses, and we allow the 

institution time to correct the problems.

If informal supervisory approaches have not been 

or are not likely to be successful, we use our formal 

enforcement authorities. We may take an enforcement action for several reasons:

• A situation threatens an institution’s financial 

stability.

• An institution has a safety and soundness problem or has violated a law or regulation.

• An institution’s board is unable or unwilling to 

correct problems we have identified.

Our enforcement authorities include the following 

powers:

• To enter into formal agreements

• To issue cease-and-desist orders

• To levy civil money penalties

• To suspend or remove officers, directors, and 

other persons

If we take an enforcement action, the FCS institution must operate under the requirements of the 

action and report back to our agency on its progress in fulfilling the requirements. Our examiners 

oversee the institution’s performance to ensure 

compliance with the enforcement action. As of 

June 30, 2022, there were no formal enforcement 

actions in place.

Goal 2, Strategy 5: Ensure that technology, information management, and cybersecurity awareness 

are priorities at FCA and in the FCS.

Our FCS Loan Database is an enterprise system we 

built to reliably collect and store data for examination activities and systemic risk analysis. The loan 

database provides a robust dataset for analyzing 

institution loan portfolios and facilitating the loan 

review activities of our Office of Examination. It 

also supports Systemwide risk analysis. 

We previously established uniform instructions 

to help System institutions report accounts in a 

timely and reliable manner. We also worked with 

the System to improve data quality, systems, and 

analysis capabilities. This included requiring institutions to identify shared assets and systemically 

significant customers by incorporating into the 

dataset shared-asset and customer numbers, as 

well as attribution data on their largest customers. 

We also deployed an agency-level data mart/data 

cube environment, which is a centralized data 

warehouse for transactional and indicative data 

provided by each financial institution in the Farm 

Credit System.

In 2022, we improved our examination processes 

by continuing to do the following:

• Redesign the collection process for System Call 

Report data.

• Develop and implement new business intelligence tools and analysis applications. These 

tools and applications allow our examiners to 

use our information sources, including the data 

mart, more effectively for analytical purposes.

• Enhance the EDGe Loan Workpaper, a webbased application that accesses the FCS Loan 

Database.

• Improve the FCS Loan Database.

• Develop and integrate new management reports 

and examination tools as part of the EDGe 

project.
36 | FCA Performance and Accountability Report — 2022

• Improve connectivity to System institutions 

through videoconferencing, teleconferencing, 

and electronic access to loan files.

We continually evaluate whether institutions are 

maintaining systems to analyze their portfolio risk 

and borrower profiles. We review their processes 

and tools for analyzing sensitivity and stress. In 

December 2018, we issued a System memorandum 

on the use of personal email and related cybersecurity concerns. In September 2021, we issued an 

informational memorandum to Farmer Mac on the 

same topic.

In June 2021, we issued an informational memorandum to provide System institutions with guidance to protect critical data against ransomware 

attacks. 

A year later, in June 2022, the FCA board approved 

a proposed rule on cyber risk management that 

would rescind and revise FCA regulations governing electronic commerce. Among other things, the 

proposed regulations would require each System 

institution to implement a board-approved cyber 

risk management plan and maintain robust internal controls.

Goal 2, Strategy 6: Ensure that strong governance, 

standards of conduct, and ethical behavior are part 

of the organizational culture of the FCS.

We evaluate the compliance of System institutions 

with governance regulations and their adherence 

to cooperative principles. In August 2021, we 

updated our standards of conduct regulations for 

FCS institutions; these regulations take effect in 

2023. We continue to evaluate each institution’s 

standards of conduct policies and procedures as 

determined by its board of directors and implemented by its standards of conduct official. We also 

continue to evaluate each institution’s ethics and 

organizational culture. We share our conclusions 

and recommendations with System boards of directors. As discussed under goal 2, strategy 4, we 

use a three-tiered supervision program to ensure 

that institutions take appropriate measures to mitigate any risks our examiners identify.

Goal 3—Cultivate an environment that 

fosters a well-trained, motivated, and diverse 

staff while providing an effective plan for 

leadership succession.

In our strategic plan for fiscal years 2018 to 2023, 

we established this goal to ensure that we will 

continue to be an effective organization by having 

the right number of people with the right skills, 

experiences, and competencies. 

There are four strategies and two performance 

measures aligned with goal 3. The data cited for 

this goal are for the fiscal year ended Sept. 30, 

2022.

Goal 3, Strategy 1: Maintain a highly skilled and 

diverse workforce to meet FCA’s current and future

regulatory development, risk analysis, examination, 

and supervision needs.

FCA is committed to having a diverse and inclusive 

workforce and respecting individuals and their cultures, while complying with merit principles and 

applicable federal laws. We strive to ensure that 

our employees have a wide range of experiences, 

perspectives, and skills because this diversity leads 

to better solutions, drives innovation and creativity, and enhances decision making.

Ensuring a diverse and inclusive workforce enables 

FCA to be more responsive to the institutions we 

regulate and better equipped to fulfil our mission. 

We continue to make strides in recruiting and 

hiring a diverse workforce. Of 42 hires in FY 2022 

(including Pathways Program interns and recent 

graduates),

• 28.6% are from diverse ethnic and racial groups,

• 7.1% have disabilities, and 

• 2.4% have targeted disabilities. 

Multiple waves of COVID-19, along with efforts to 

limit disease spread and offset its economic impacts, have led to dramatic ups and downs in the 

economy. The COVID-19 pandemic wreaked havoc 

on the U.S. labor market. Like many organizations, 

we experienced an increase in workforce attrition. 

Despite this attrition, we managed to maintain a 
FCA Performance and Accountability Report — 2022 | 37

highly qualified and engaged workforce by focusing on three key activities:

• Strategic recruitment and improved operational 

effectiveness, which includes facilitating internal mobility and hiring external talent for midcareer positions. 

• Enhancing FCA’s employee benefits package by 

customizing what we offer to better meet the 

needs of our workforce.

• Establishing a recruitment and retention workgroup tasked with developing recommendations 

to minimize attrition and enhance recruitment.

Hiring operations 

Organizations today face intense competition for 

skilled workers. To compete in this environment, 

federal agencies need a hiring system that meets 

the following criteria:

• Is responsive to managers’ needs and the needs 

of applicants.

• Produces high-quality, diverse applicants.

• Supports timely decisions.

• Results in competitive job offers.

Our Office of Agency Services (OAS) worked closely 

with senior leaders and hiring managers to recruit 

and hire talented individuals from all communities 

in FY 2022. The OAS Operations Division improved 

the personnel security process and reduced the 

time to clear for onboarding to an average of six 

days. The Human Resources team (HR) also took 

steps to improve the efficiency of the hiring operations. Over the first three quarters of FY 2022, HR 

reduced the overall time to hire to 87 days—15 days 

fewer than the FY 2021 average. This allowed FCA 

to maintain a highly skilled and diverse workforce 

that meets FCA’s current and future regulatory 

development, risk analysis, examination, and supervision needs.

Midcareer hires

OAS also supported the agency by continuing to focus on midcareer hiring and closing the skills gaps 

with seasoned talent. Midcareer hiring, which has 

been strong for the past couple years, increased 

slightly in 2022 to 26.2% of our overall hiring. 

Midcareer hiring levels for the past two years (FY 

2021 and 2022) dramatically outpaced the levels 

in FY 2019 and FY 2020, when they were 10% and 

9.5%, respectively. We were able to increase our 

midcareer hires by using targeted hiring, a strategy 

that supplements our robust early-career development programs. 

In FY 2022, the Office of Information Technology, 

Office of Agency Services, Office of Examination, 

and Office of the General Counsel each hired at 

least one midcareer employee from outside FCA. 

To fill critical skill gaps, the agency focused its 

midcareer hiring on jobs with transferable skills. 

Among our midcareer hires were attorneys, IT specialists, examiners, and HR specialists. Over 70% 

of FCA midcareer hires were sourced from other 

federal agencies, and some of them were former 

FCA employees. 

Enhanced compensation and benefits package 

To ensure that FCA continues to attract and retain 

a diverse, highly skilled workforce, we enhanced 

compensation and benefits in FY 2022 to include 

the following:

• An across-the-board pay increase

• A leave exchange program

• A student loan repayment program 

• A childcare subsidy program

Recruitment and Retention Workgroup

FCA established a recruitment and retention workgroup with representation from every office. The 

group was led by the chief human capital officer, 

while the chief operating officer served as the executive sponsor. The workgroup made several recommendations, which are currently being considered.

Here are some other notable measures we’ve taken 

to support recruitment and retention:

• Promoted work-life balance, applying some of 

the lessons we learned from our response to the 

pandemic.
38 | FCA Performance and Accountability Report — 2022

• Recruited individuals with disabilities and used 

special hiring authorities (e.g., to hire veterans 

and Schedule A applicants).

• Provided opportunities for staff to engage with 

senior leaders by delivering the agency’s Meet 

the Leaders program in a virtual environment. 

This program allows new hires to learn more 

about FCA culture and to interact with senior 

executives through small team discussions. 

• Gave employees opportunities to take training 

from the Small Agency Council in areas such as 

emotional intelligence, business writing with a 

plain language approach, conflict management, 

retirement financial planning, leading hybrid 

teams, and business writing.

Goal 3, Strategy 2: Facilitate the development of 

the skills our workforce needs to evaluate FCS risk 

and provide timely and proactive oversight.

In FY 2022, FCA continued to devote significant 

resources to training new examiners through our 

examiner commissioning program. In addition, 

we increased our focus on helping midcareer staff 

develop their skills. 

Through our examiner commissioning program, 

we are building a diverse cadre of highly qualified 

examiners, ensuring they have the knowledge, 

skills, and talents necessary to accomplish the 

agency’s mission. The program provides examiners with formal and on-the-job training 

incredit, finance, operations, and examination 

management—our primary areas of oversight and 

examination.

We also invest in the development of our commissioned and technical specialist examiners through 

human capital planning, examiner career development, and specialty programs. The specialty 

programs enable examiners to gain technical expertise and encourage them to pursue professional 

development and certification.

In addition to training examination staff in the 

technical and soft skills they need, we provide 

opportunities for commissioned and technical specialist examiners to develop their careers further 

by completing certifications (for credit, finance, 

operations, and examination management). These 

opportunities have strengthened current performance, increased our bench strength, and reduced 

unforced attrition.

We help our examiners maintain their readiness 

to administer elevated supervision of the FCS institutions when necessary, and we make sure that 

all our examiners understand our risk supervision 

approaches and how to implement them.

Through a partnership with Virginia Tech’s 

Department of Agricultural and Applied 

Economics, we gave our employees the opportunity to earn graduate certificates in agricultural and 

applied economics in the fall of 2022. The program 

consisted of six two-week, self-paced courses that 

explored economic phenomena and policymaking 

strategies. Course topics included supply and demand, determining market equilibrium, analyzing 

market equilibrium, perfect competition, market 

structure, and monopoly power.

In the third quarter of FY 2022, our Office of 

Agency Services worked with FCA subject-matter 

experts and Virginia Tech faculty to create and 

administer three capstone projects for current 

Virginia Tech certificate students. Through these 

projects, students demonstrated the new skills they 

had acquired during the graduate certificate program. Those projects included forecasting credit 

quality; analyzing trends in lending to young, beginning, and small farmers; and Systemwide debt 

growth.

The partnership with Virginia Tech also allowed 

us to create a new graduate fellows certificate program to provide our employees with a solid foundation in agricultural policy, econometrics, and 

data science tools. The certificate program offers 

concentrations in the following:

• Agribusiness foundations—Policy: This concentration focuses on the management, marketing, 

finance, and policy tools one needs to excel in 

agribusiness. The emphasis is on foundational 

methods spanning production management, 

human resource management, market planning 

and analysis, financial analysis, and policy 

interpretation.
FCA Performance and Accountability Report — 2022 | 39

• Agribusiness foundations—Risk management: 

This concentration focuses on the in-depth 

information and analysis needed to enhance 

one’s ability to identify and evaluate emerging 

risks to Farm Credit System institutions. The 

emphasis is on agribusiness risk management 

and credit principles, capital budgeting and risk 

and returns in agribusiness settings, and capital 

investment decisions.

• Applied economics for agribusiness: This concentration focuses on the applied economics 

needed for success in agribusiness, general 

business, government, and related fields. The 

emphasis is on economic analysis, with a specific focus on relevant microeconomic, macroeconomic, commodity market, and agribusiness 

applications. 

• Agricultural data analytics: This concentration 

focuses on equipping the individual with the 

skills needed to develop data-driven strategies 

that can help the agency fulfill its oversight and 

supervisory obligations. The emphasis is on the 

descriptive statistics, inference, statistical simulation, data modeling, and data visualization 

methods that are used in finance and agribusiness management.

Goal 3, Strategy 3: Ensure adequate succession 

planning and knowledge transfer to ensure that 

future FCA leadership and staff possess the knowledge and skills required to be an effective arm’s

length regulator.

We have updated our examiner career development program by creating a management development plan for supervisory examiners. This will 

help ensure that our future supervisory examiners 

have the leadership, management, and supervisory 

skills they will need to replace seasoned managers 

and supervisors when they retire. Our strategy is 

to develop a pool of candidates who could become 

successful supervisors, leaders, and managers, 

and could even qualify for the position of chief 

examiner. We also recognize that retirements 

create opportunities for diversity and inclusion in 

management.

We have begun the process of building our internal 

capability to assess the competency of current and 

aspiring leaders. This capability will enable us to 

provide targeted learning development journeys 

for employees, based on where they currently are 

and where their interests lie. We will be able to 

identify behaviors that predict supervisory and 

leadership readiness. The goal of the assessment is 

to help staff members determine whether supervision is suited to their strengths and career plans. 

We will use the results of the competency assessment to tailor learning programs or instructional 

resources to the competency needs of the individual. We are deriving the competencies, definitions, 

and behavioral indicators from the OPM proficiency levels for leadership competencies, and 

we’re developing our suggested learning objectives 

in accordance with those proficiency levels. The 

learning objectives will help staff members identify the learning materials or programs they need to 

develop their skills.

In addition to developing an assessment tool, FCA 

has used the following methods to develop future 

groups of program managers and leaders:

• Created leadership positions for program and 

portfolio managers and provided selected candidates with formal leadership training, on-thejob training, and opportunities to participate in 

other projects.

• Expanded the number of our Skillsoft Percipio 

licenses to provide all FCA employees full access to over 500,000 blended learning resources. 

Percipio is Skillsoft’s next-generation learning 

platform, which provides an immersive learning experience anywhere, anytime, and on any 

device. Featured content includes an extensive 

course library; more than 170 technical certifications; e-books and audiobooks; and a blend of 

virtual, on-demand, instructor-led training.

• Informed employees of internal career growth 

and developmental opportunities through the 

agency’s employee newsletter and provided 

special training sessions on how to apply for 

internal jobs.

• Sent two FCA employees to OPM’s Federal 

Executive Institute in FY 2022.
40 | FCA Performance and Accountability Report — 2022

• Conducted two webinar sessions titled 

“Leadership Engagement” for FCA leaders; 

more than 70 employees participated. These sessions covered strategies, tools, and tips to help 

supervisors build strong, engaging relationships 

with their employees. The course feedback was 

overwhelmingly favorable. Participants said 

the sessions gave them an opportunity to interact with their colleagues and discuss current 

challenges.

• Developed and held four training sessions on 

working in a hybrid (in-office and virtual) work 

environment. The sessions covered the following topics: how to manage a virtual team; how 

to provide feedback in a hybrid environment; 

how to optimize performance for all in a hybrid 

environment; and how, as a teleworker, to perform successfully on a hybrid team. More than 

65 current managers and executives and more 

than 225 nonsupervisory employees attended 

the training.

• Created and held three training sessions on 

the prevention of workplace harassment, whistleblower protections, and prohibited personnel 

practices for FCA employees and supervisors.

• Helped staff build skillsets through developmental assignments, such as serving as examiners-in-charge of complex institutions and 

participating in specialist programs through the 

Office of Examination.

Goal 3, Strategy 4: Encourage a workplace culture 

that motivates staff to be engaged, embraces diversity in all its forms, and promotes strong ethical 

behavior.

According to the 2022 Federal Employee Viewpoint 

Survey, FCA’s overall employee engagement index 

increased slightly, from 82 to 83, as shown in

table 8. By comparison, the engagement score in 

2019 was 79.

Since 2017, FCA has been ranked by the 

Partnership for Public Service as one of the top 10 

best places to work among small federal agencies. 

We promote engagement in various ways, such as 

providing training and development opportunities 

for employees to build their skills and advance 

their careers.

We also strengthen engagement by having an 

inclusive workplace. For example, our special 

emphasis programs, such as the Federal Women’s 

Program Committee, Blacks in Government, and 

HOLA FCA (Hispanic Organization for Leadership 

and Advancement), sponsor regular presentations 

on issues affecting women and minority groups. 

And each year we have a Diversity Day on which 

we celebrate the diverse cultures represented in 

our workplace. However, in fiscal years 2020, 2021, 

and 2022, Diversity Day was canceled because of 

the pandemic.

Table 8. 2022 Federal Employee Viewpoint Survey results for employee engagement

Employee 

engagement

Governmentwide Small 

agencies

Farm Credit 

Administration 

2021

Farm Credit 

Administration 

2022

Change in 

points

Overall 71 76 82 83 +1

Leaders Lead 59 65 72 76 +4

Supervisors 80 84 92 92 –

Intrinsic work 

experience

73 78 82 81 −1

Global 

satisfaction

62 68 78 75 −3
FCA Performance and Accountability Report — 2022 | 41

We also strive to increase workforce diversity. We 

target at least 25% of our recruiting efforts toward 

potential applicants who have a disability or who 

are members of a minority group. For example, 

during each recruiting season, we attend career 

fairs at historically Black colleges and universities and schools with a high rate of minority 

enrollment.

And as a financial banking regulator, we emphasize ethical conduct among all employees. In 2011, 

our board adopted a policy statement on ethics, 

independence, and our role as an arm’s length regulator. This document states the following:

• The FCA board will continue to hold itself to the 

highest standards of ethical conduct in recognition that its commitment and adherence to the 

agency ethics program sets the standard for the 

commitment and conduct of agency staff.

• FCA board members and employees must remain mindful of their duty to make independent 

determinations on matters being considered by 

the agency.

• As the arm’s length regulator of the Farm Credit 

System, FCA is committed to carrying out its 

work without any undue influence, favoritism, 

or special access.

Our ethics program performs the following 

functions:

• Oversees financial disclosure reporting (that 

is, the completion of public, confidential, and 

certification forms) of covered FCA and Farm 

Credit System Insurance Corporation (FCSIC) 

employees.

• Provides ethics counseling to FCA and FCSIC 

employees.

• Provides ethics training to all covered FCA and 

FCSIC employees annually, as well as to new 

employees during orientation.

• Provides a liaison to coordinate with other government agencies regarding ethics issues.

• Helps develop regulations and policies related to 

ethics.
42 | FCA Performance and Accountability Report — 2022

Table 9a. Goal 1—Performance measures and results for public mission

July 1, 2021, to June 30, 2022

Measure 1: Percentage of FCS institutions providing 

products and services that serve creditworthy and eligible persons and perform 

outreach to enhance diversity and inclusion.

Results: FCA regulations require each direct-lender System institution to include in its operating and strategic 

business plan a marketing plan with strategies for providing the institution’s products and services to all creditworthy and eligible persons. The Office of Examination

has updated examination guidance and communications 

with the System on FCA’s minimum business plan expectations beyond regulatory compliance, including diversity and inclusion requirements. Annually, we review 

all System institutions’ business plans for compliance

with FCA regulations and examination guidance. In 2022, 

100% of FCS institutions had satisfactory operating, marketing, and strategic plans for providing products and 

services to all creditworthy and eligible persons. 

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

≥90% 100% ≥90% 100% ≥90% 100% ≥90% 99% ≥90% 99% ≥90% 100% ▲

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is 

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; ▲

indicates we exceeded the FY 2022 target; ✓ indicates we achieved the FY 2022 target; ▼ indicates we did not meet the FY 2022 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018–2023. The performance measures in that plan remain 

substantially the same as the measures in the previous plan.
FCA Performance and Accountability Report — 2022 | 43

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is 

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; ▲

indicates we exceeded the FY 2022 target; ✓ indicates we achieved the FY 2022 target; ▼ indicates we did not meet the FY 2022 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018–2023. The performance measures in that plan remain 

substantially the same as the measures in the previous plan.

Measure 2:	 Whether Farmer Mac’s business plan contains

strategies to promote and encourage the 

inclusion of all qualified loans, including

loans to small farms and family farmers, in its 

secondary market programs, and whether its 

business activities further its mission to provide a source of long-term credit and liquidity 

for qualifying loans.

Results: Statute requires the Farmer Mac board to 

promote and encourage the inclusion of qualified loans

for small farms and family farmers in the agricultural 

mortgage secondary market. Farmer Mac achieved this 

goal in FY 2022. FCA, through the Office of Secondary

Market Oversight, monitors and oversees Farmer Mac’s

activities. In our review of Farmer Mac’s 2022 business

plan, we found the plan contained adequate strategies 

for promoting and encouraging the inclusion of all 

qualified loans, including small and family farm loans,

in its secondary market programs. Its business activities 

further its mission to provide a source of long-term credit 

and liquidity. The 2022 plan discussed opportunities to 

enhance relationships and initiatives that provide affordable financial solutions for the benefit of small farms and

family farmers, including minority and women farmers. 

Farmer Mac submits an annual mission achievement 

report to FCA, highlighting activity related to small and 

family farms and market penetration. Each year, during 

our examination of Farmer Mac, we review its mission 

achievement and its annual mission achievement report, 

and we document results and conclusions in our annual 

Report of Examination.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes ✓

Measure 3: Percentage of direct-lender institutions with 

satisfactory consumer and borrower rights 

compliance.

Results: Our oversight and examination program regularly evaluates compliance with consumer and borrower 

rights regulations through review of policies, programs, 

processes, and loans. In 2022, 100% of direct-lender institutions had satisfactory consumer and borrower rights 

compliance. 

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

≥90% 100% ≥90% 97.3% ≥90% 95% ≥90% 96% ≥90% 99% ≥90% 100% ▲
44 | FCA Performance and Accountability Report — 2022

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is 

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; ▲

indicates we exceeded the FY 2022 target; ✓ indicates we achieved the FY 2022 target; ▼ indicates we did not meet the FY 2022 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018–2023. The performance measures in that plan remain 

substantially the same as the measures in the previous plan.

Measure 4: Percentage of direct-lender institutions with 

YBS programs for farmers and ranchers that 

are in compliance with YBS regulations.

Results: Ongoing oversight and examination activities 

regularly address compliance with mission-related regulations, including young, beginning, and small farmer 

programs. All direct-lender institutions with YBS programs are in compliance with YBS regulations.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ▲

Measure 5: Whether the majority of objectives listed in 

the preamble of each final rule were met on

the two-year anniversary of the rule’s effective or implementation date.

Results: There was one rule that met the reporting requirement. Most of the objectives listed in the preamble 

of the final rule were met by the two-year anniversary of

the implementation date.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes ✓

Measure 6: Percentage of pre-rulemaking projects and 

proposed rules on which FCA requested input 

from persons outside of FCA. (This measure 

considers all the pre-rulemaking projects and 

proposed rules that were listed as completed 

on FCA’s Unified Agenda Abstracts for the

reporting period.)

Results: There were four pre-rulemaking projects or 

proposed rules that met the reporting requirement; we 

did request input on these projects or rules from persons 

outside of FCA. It is our standard practice to request input on all pre-rulemaking projects and proposed rules.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Results

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

100% 89% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% ✓
FCA Performance and Accountability Report — 2022 | 45

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is 

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; ▲

indicates we exceeded the FY 2022 target; ✓ indicates we achieved the FY 2022 target; ▼ indicates we did not meet the FY 2022 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018–2023. The performance measures in that plan remain 

substantially the same as the measures in the previous plan.

Table 9b. Goal 2—Performance measures and results for safety and soundness 

July 1, 2021, to June 30, 2022

Measure 1: Percentage of System assets in institutions 

with composite CAMELS ratings of 1 or 2. 

(CAMELS is a rating of capital, assets, management, earnings, liquidity, and sensitivity.)

Results: Ninety-nine percent of System assets are in institutions with composite CAMELS ratings of 1 or 2.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

≥90% 99.6% ≥90% 98.6% ≥90% 98% ≥90% 99% ≥90% 99% ≥90% 99% ▲

Measure 2: Percentage of requirements in supervisory 

agreements with which FCS institutions have 

at least substantially complied within 18 

months of execution of the agreements.

Results: The agency does not have any supervisory 

agreements in place with FCS institutions.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

≥80% N/A ≥80% N/A ≥80% N/A ≥80% N/A ≥80% N/A ≥80% N/A N/A

Measure 3: Percentage of institutions complying with 

regulatory capital ratio requirements.

Results: Our oversight and examination program analyzes and reports on capital at least quarterly and in 

conjunction with the statutory compliance date. All institutions complied with regulatory capital ratio requirements.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

≥90% 100% ≥90% 100% ≥90% 100% ≥90% 100% ≥80% 100% ≥80% 100% ▲
46 | FCA Performance and Accountability Report — 2022

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is 

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; ▲

indicates we exceeded the FY 2022 target; ✓ indicates we achieved the FY 2022 target; ▼ indicates we did not meet the FY 2022 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018–2023. The performance measures in that plan remain 

substantially the same as the measures in the previous plan.

Measure 4:	 Whether the Office of Secondary Market

Oversight’s examination and oversight plan

and activities effectively identify emerging

risks, and whether appropriate supervisory 

and corrective actions have been taken to 

effect change when needed.

Results: The Office of Secondary Market Oversight’s examination and oversight plan effectively identifies risk by

completing an annual risk assessment of Farmer Mac’s

operations to determine where to focus examination 

resources and time. In addition, an annual informational 

memorandum identifies specific areas of emphasis

during the upcoming examination cycle. These focus areas are identified during the Office of Secondary Market

Oversight’s annual planning process and are considered

for updates as needed based on the results of our ongoing monitoring and oversight. We issue corrective actions 

to Farmer Mac that warrant the attention of its board 

and management; the corrective actions we issue aim to 

improve the overall safety and soundness of Farmer Mac. 

We evaluate actions taken to address matters requiring 

attention on a quarterly basis and summarize progress 

in interim activity letters and the annual Report of Examination. In 2022, actions taken in response to our examination activities strengthened Farmer Mac’s operations,

and its efforts to address matters requiring attention

were satisfactory.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes ✓
FCA Performance and Accountability Report — 2022 | 47

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is 

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; ▲

indicates we exceeded the FY 2022 target; ✓ indicates we achieved the FY 2022 target; ▼ indicates we did not meet the FY 2022 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018–2023. The performance measures in that plan remain 

substantially the same as the measures in the previous plan.

Measure 5: Percentage of institutions with satisfactory 

audit and review programs, including institutions with acceptable corrective action plans.

Results: Our oversight and examination program specifically emphasizes strong internal controls at all System 

institutions, including internal controls over financial

reporting. With one exception, all institutions had satisfactory audit and review programs, including institutions 

with acceptable corrective action plans. One institution 

did not meet this standard because its corrective action 

plan was not adequate to resolve weaknesses in its 

internal control program. The institution’s board and

management are developing a more effective corrective

action plan to address and resolve identified weaknesses

in their program.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

100% 99% 100% 95.9% 100% 97% 100% 99% 100% 100% 100% 99% ▼

Measure 6:	 Whether five or more reports and dashboards

were created that use data collected from 

the Farm Credit System to assess risk in the 

System.

Results: The agency exceeded this goal. Numerous 

tracking and analysis reports and dashboards related to 

mergers, shared assets, portfolios, and others were created to better spot trends and identify risks.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes ✓
48 | FCA Performance and Accountability Report — 2022

The following defines the symbols and abbreviations used to describe targets in the Performance Measures and Results tables: ≥ is 

greater than or equal to; N/A indicates either that the measure is not applicable or that FCA’s performance could not be measured; ▲

indicates we exceeded the FY 2022 target; ✓ indicates we achieved the FY 2022 target; ▼ indicates we did not meet the FY 2022 target.

Notes: In April 2018, the FCA board adopted the FCA Strategic Plan for FYs 2018–2023. The performance measures in that plan remain 

substantially the same as the measures in the previous plan.

Table 9c. Goal 3—Performance measures and results for workforce management 

July 1, 2021, to June 30, 2022

Measure 1:	 Whether, as part of its recruiting efforts for

entry-level examiners, FCA has ensured that 

at least 25% of its outreach efforts target applicants with a disability or who are members 

of a minority group.

Results: At least 25% of our virtual outreach efforts targeted potential applicants who have a disability or who 

are members of a minority group.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

25% Yes 25% Yes 25% Yes 25% Yes 25% Yes 25% Yes ✓

Measure 2: Whether we have maintained or improved 

our score from last year in the annual employee satisfaction survey.

Results: The results for the 2021 Federal Employee Viewpoint Survey were not released until November 2021. FCA 

had a strong showing--ranking 6 on the list of best places 

to work among small agencies in the federal government. 

The 2022 survey was administered in July 2022, and preliminary results were recently released. In the 2022 survey, FCA’s employee engagement score increased to 83%.

Over the past several years, FCA has consistently ranked 

among the top 10 best places to work for small agencies 

based on overall engagement, in large part because of 

our focus on employee well-being, effective supervisory

leadership, and our ability to achieve our mission.

2017 

Target

2017 

Results

2018 

Target

2018 

Results

2019 

Target

2019 

Results

2020 

Target

2020 

Results

2021 

Target

2021 

Results

2022 

Target

2022 

Results

Results 

vs. 

Target

≥72% Yes ≥75% Yes ≥81% Yes ≥81% Yes ≥86% No ≥82% Ye
FCA Performance and Accountability Report — 2022 | 49
50 | FCA Performance and Accountability Report — 2022

Financial Section

In this section, we present our independent auditors’ 

report and our financial statements and notes. We 

prepared these statements and accompanying notes in 

compliance with U.S. generally accepted accounting 

principles for the federal government and OMB 

Circular A-136, Financial Reporting Requirements.
FCA Performance and Accountability Report — 2022 | 51

Transmittal Letter of Auditor’s Report

1501 Farm Credit Drive, McLean, VA 22102 703-883-4030 www.fca.gov/about/inspector-general

November 10, 2021

The Honorable Glen R. Smith, Board Chairman and Chief Executive Officer

The Honorable Jeffery S. Hall, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Chairman Smith and Board Member Hall:

We contracted with the independent public accounting firm Harper, Rains, Knight & Company 

P.A. (HRK) to audit the financial statements of the Farm Credit Administration (FCA) as of and for 

the fiscal years ended September 30, 2021 and 2020 and to provide a report on internal control 

over financial reporting and compliance with laws and other matters. The contract required that 

the audit be performed in accordance with Government Auditing Standards, Office of Management 

and Budget audit guidance, and the U.S. Government Accountability Office/Council of the 

Inspectors General on Integrity and Efficiency’s Financial Audit Manual. 

In its audit of FCA, HRK reported: 

• the financial statements were fairly presented, in all material respects, in accordance with 

U.S. generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting and compliance with 

laws and other matters; and

• no reportable noncompliance with provisions of laws tested or other matters.

In connection with the contract, we reviewed HRK’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit of the financial 

statements in accordance with U.S. generally accepted government auditing standards, was not 

intended to enable us to express, and we do not express, opinions on FCA’s financial statements 

or conclusions about the effectiveness of internal control over financial reporting, or on 

compliance with laws and other matters. HRK is responsible for the attached auditor’s report dated 

November 10, 2021, and the conclusions expressed therein. However, our review disclosed no 

instances where HRK did not comply, in all material respects, with Government Auditing Standards. 

November 10, 2022

The Honorable Vincent G. Logan, Board Chairman and Chief Executive Officer

The Honorable Jeffery S. Hall, Board Member

The Honorable Glen R. Smith, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Chairman Logan and Board Members Hall and Smith:

The Office of Inspector General contracted with the independent public accounting firm Harper, 

Rains, Knight & Company P.A. (HRK) to audit the financial statements of the Farm Credit 

Administration (FCA) as of and for the fiscal years ended September 30, 2022 and 2021, and 

to provide a report on internal control over financial reporting and compliance with laws and 

other matters. The contract required that the audit be performed in accordance with Government 

Auditing Standards, Office of Management and Budget audit guidance, and the United States (U.S.) 

Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency’s 

Financial Audit Manual.

In its audit of FCA, HRK reported:

• the financial statements were fairly presented, in all material respects, in accordance with 

U.S. generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting; and

• no reportable noncompliance with provisions of laws tested or other matters.

In connection with the contract, we reviewed HRK’s report and related documentation and inquired 

of its representatives. Our review, as differentiated from an audit of the financial statements, 

was not intended to enable us to express, and we do not express, opinions on FCA’s financial 

statements or conclusions about the effectiveness of internal control over financial reporting, or 

on compliance with laws and other matters. HRK is responsible for the attached auditor’s report 

dated November 8, 2022, and the conclusions expressed therein. However, our review disclosed no 

instances where HRK did not comply, in all material respects, with Government Auditing Standards.

Respectfully,

Sonya K. Cerne 

Assistant Inspector General for Audits, Inspections, and Evaluations

Enclosure

1501 Farm Credit Drive, McLean, VA 22102 703-883-4030 www.fca.gov/about/inspector-general

November 10, 2021

The Honorable Glen R. Smith, Board Chairman and Chief Executive Officer

The Honorable Jeffery S. Hall, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Chairman Smith and Board Member Hall:

We contracted with the independent public accounting firm Harper, Rains, Knight & Company 

P.A. (HRK) to audit the financial statements of the Farm Credit Administration (FCA) as of and for 

the fiscal years ended September 30, 2021 and 2020 and to provide a report on internal control 

over financial reporting and compliance with laws and other matters. The contract required that 

the audit be performed in accordance with Government Auditing Standards, Office of Management 

and Budget audit guidance, and the U.S. Government Accountability Office/Council of the 

Inspectors General on Integrity and Efficiency’s Financial Audit Manual. 

In its audit of FCA, HRK reported: 

• the financial statements were fairly presented, in all material respects, in accordance with 

U.S. generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting and compliance with 

laws and other matters; and

• no reportable noncompliance with provisions of laws tested or other matters.

In connection with the contract, we reviewed HRK’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit of the financial 

statements in accordance with U.S. generally accepted government auditing standards, was not 

intended to enable us to express, and we do not express, opinions on FCA’s financial statements 

or conclusions about the effectiveness of internal control over financial reporting, or on 

compliance with laws and other matters. HRK is responsible for the attached auditor’s report dated 

November 10, 2021, and the conclusions expressed therein. However, our review disclosed no 

instances where HRK did not comply, in all material respects, with Government Auditing Standards. 
52 | FCA Performance and Accountability Report — 2022

Independent Auditors' Report 

The FCA Board and Inspector General 

Farm Credit Administration 

Report on the Audit of the Financial Statements 

Opinion 

In accordance with the Accountability of Tax Dollars Act, we have audited the financial statements of the 

Farm Credit Administration (FCA). FCA's financial statements comprise the balance sheets as of 

September 30, 2022, and 2021, and the related statements of net cost, changes in net position, and 

budgetary resources for the fiscal years then ended, and the related notes to the financial statements. 

In our opinion, FCA's financial statements present 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 accounting principles generally accepted in 

the United States of America. 

Basis for Opinion 

We conducted our audit in accordance with auditing standards generally accepted in the United States of 

America (GAAS) and the standards applicable to financial audits contained in Government Auditing 

Standards (GAGAS), issued by the Comptroller General of the United States and Office of Management 

and Budget (OMB) Bulletin No. 22-01, Audit Requirements for Federal Financial Statements. Our 

responsibilities under those standards and OMB Bulletin No. 22-01 are further described in the Auditors' 

Responsibilities for the Audit of the Financial Statements section of our report. We are required to be 

independent of FCA and to meet our other ethical responsibilities, in accordance with the relevant ethical 

requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and 

appropriate to provide a basis for our audit opinion. 

Responsibilities of Management for the Financial Statements 

FCA's management is responsible for the preparation and fair presentation of these financial statements 

in accordance with accounting principles generally accepted in the United States of America; preparing, 

measuring, and presenting the Required Supplementary Information (RSI) in accordance with accounting 

principles generally accepted in the United States of America; preparing and presenting other information 

included in documents containing the audited financial statements and auditors' report, and ensuring the 

consistency of that information with the audited financial statements and the RSI; and for the design, 

implementation, and maintenance of internal control relevant to the preparation and fair presentation of 

financial statements that are free from material misstatement, whether due to fraud or error.

Independent Auditor’s Report
FCA Performance and Accountability Report — 2022 | 53

The FCA Board and Inspector General 

Farm Credit Administration (continued) 

Auditors' Responsibilities for the Audit of the Financial Statements 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 

free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes 

our opinion. Reasonable assurance is a high level of assurance, but is not absolute assurance, and therefore, 

is not a guarantee that an audit conducted in accordance with GAAS will always detect a material 

misstatement or a material weakness when it exists. The risk of not detecting a material misstatement 

resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, 

intentional omissions, misrepresentations, or the override of internal control. Misstatements are 

considered material if there is a substantial likelihood that, individually, or in the aggregate, they would 

influence the judgment made by a reasonable user based on the financial statements. 

In performing an audit in accordance with GAAS, GAGAS, and OMB Bulletin No. 22-01, we: 

 Exercise professional judgment and maintain professional skepticism throughout the audit. 

 Identify and assess the risks of material misstatement of the financial statements, whether due to 

fraud or error, and design and perform audit procedures responsive to those risks. Such procedures 

include examining, on a test basis, evidence regarding the amounts and disclosures in the financial 

statements. 

 Obtain an understanding of internal controls relevant to the audit in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an 

opinion on the effectiveness of FCA's internal control. Accordingly, no such opinion is expressed. 

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluate the overall presentation of the 

financial statements. 

 Perform other procedures we consider necessary in the circumstances. 

We are required to communicate with those charged with governance regarding, among other matters, the 

planned scope and timing of the audit, significant audit findings, and certain internal control–related 

matters that we identified during the audit. 

Required Supplementary Information 

Accounting principles generally accepted in the United States of America issued by the Federal 

Accounting Standards Advisory Board (FASAB) require that the information in the Management's 

Discussion and Analysis be presented to supplement the financial statements. Such information is the 

responsibility of management and, although not a part of the financial statements, is required by FASAB 

who considers this information to be an essential part of financial reporting for placing the financial 

statements in appropriate operational, economic, or historical context. We have applied certain limited 

procedures to the RSI in accordance with GAAS, which consisted of inquiries of management about the 

methods of preparing the RSI and comparing the information for consistency with management's 

responses to the auditors' inquiries, the financial statements, and other knowledge we obtained during the 

audit of the financial statements, in order to report omissions or material departures from FASAB 

guidelines, if any, identified by these limited procedures. We did not audit, and we do not express an 

opinion or provide any assurance on the RSI because the limited procedures we applied do not provide 

sufficient evidence to express an opinion or provide any assurance. 
54 | FCA Performance and Accountability Report — 2022

The FCA Board and Inspector General 

Farm Credit Administration (continued) 

Other Information 

Our audit was conducted for the purpose of forming an opinion on FCA's financial statements. The 

information in the Statement of Board Chairman and CEO, Program Performance, and Other Information 

sections contain a wide range of information, some of which is not directly related to the financial 

statements. This information is presented for purposes of additional analysis and is not a required part of 

the financial statements or the RSI. Our opinion on the financial statements does not cover the other 

information, and we do not express an opinion or any form of assurance thereon. In connection with our 

audit of the financial statements, our responsibility is to read the other information and consider whether 

a material inconsistency exists between the other information and the financial statements, or the other 

information otherwise appears to me materially misstated. If, based on the work performed, we conclude 

that an uncorrected material misstatement of the other information exists, we are required to describe it in 

our report. 

Other Reporting Required by Government Auditing Standards

Report on Internal Control over Financial Reporting

In planning and performing our audit of FCA's financial statements as of and for the year ended September 

30, 2022, in accordance with GAGAS, we considered FCA's internal control relevant to the financial 

statement audit as a basis for designing audit procedures that are appropriate in the circumstances for the 

purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an 

opinion on the effectiveness of FCA's internal control over financial reporting. Accordingly, we do not 

express an opinion on the effectiveness of FCA's internal control over financial reporting. We are required 

to report all deficiencies that are considered to be significant deficiencies or material weaknesses. We did 

not consider all internal controls relevant to operating objectives, such as those controls relevant to 

preparing performance information and ensuring efficient operations. 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees in the normal course of performing their assigned functions, to prevent, or 

detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination 

of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement 

of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A 

significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe 

than a material weakness, yet important enough to merit attention by those charged with governance. 

Our consideration of internal control over financial reporting was for the limited purpose described above 

and was not designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies or to express an opinion on the effectiveness of FCA's internal control over 

financial reporting. Given these limitations, during our audit, we did not identify any deficiencies in 

internal control over financial reporting that we considered to be material weaknesses. However, material 

weaknesses and significant deficiencies may exist that have not been identified. 

During our 2022 audit, we identified deficiencies in FCA's internal control over financial reporting that 

we do not consider to be material weaknesses or significant deficiencies. Nonetheless, these deficiencies 

warrant FCA management's attention. We have communicated these matters to FCA management and, 

where appropriate, will report on them separately. 
FCA Performance and Accountability Report — 2022 | 55

The FCA Board and Inspector General 

Farm Credit Administration (continued) 

Report on Internal Control over Financial Reporting (continued)

An entity's internal control over financial reporting is a process effected by those charged with governance, 

management, and other personnel, the objectives of which are to provide reasonable assurance that (1) 

transactions are properly recorded, processed, and summarized to permit the preparation of financial 

statements in accordance with accounting principles generally accepted in the United States of America, 

and assets are safeguarded against loss from unauthorized acquisition, use, or disposition, and (2) 

transactions are executed in accordance with provisions of applicable laws, including those governing the 

use of budget authority, regulations, contracts, and grant agreements, noncompliance with which could 

have a material effect on the financial statements. Because of its inherent limitations, internal control over 

financial reporting may not prevent, or detect and correct, misstatements due to fraud or error. 

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

As part of obtaining reasonable assurance about whether FCA's financial statements are free from material 

misstatement, we performed tests of its compliance with selected provisions of applicable laws, 

regulations, contracts, and grant agreements that have a direct effect on the determination of material 

amounts and disclosures in FCA's financial statements, and to perform certain other limited procedures, 

but not for the purposes of expressing an opinion on FCA's compliance with applicable laws, regulations, 

contracts, and grant agreements. Accordingly, we do not express such an opinion. We did not test 

compliance with all laws, regulations, contracts, and grant agreements applicable to FCA. FCA 

management is responsible for complying with laws, regulations, contracts, and grant agreements 

applicable to the entity.

Our tests of compliance with these selected provisions of applicable laws, regulations, and contracts, and 

grant agreements disclosed no instances of noncompliance for the year ended September 30, 2022, that 

would be reportable under GAGAS or OMB Bulletin No. 22-01. We caution that noncompliance may 

occur and not be detected by these tests. 

Purpose of the Other Reporting Required by Government Auditing Standards 

The purpose of the communication described in the Other Reporting Required by GAGAS is solely to 

describe the scope of our testing of internal control and compliance with selected provisions of applicable 

laws, regulations, contracts, and grant agreements, and the results of that testing, and not to provide an 

opinion on the effectiveness of FCA's internal control or compliance. These reports are an integral part of 

an audit performed in accordance with GAGAS and OMB Bulletin No. 22-01 in considering the entity's 

internal control and compliance. Accordingly, these reports are not suitable for any other purpose. 

November 8, 2022 

Washington, DC 

FCA Performance and Accountability Report — 2022 | 57

Financial Statements

We have prepared the accompanying financial statements in accordance with U.S. generally accepted accounting principles and with the Office of Management and Budget Circular A-136, as amended. For comparison purposes, we present our financial statements and notes for FY 2022 and FY 2021. All amounts 

are in whole dollars. Our financial statements include the following:

• Balance sheets, which show our assets, our liabilities, and our net position (assets minus liabilities).

• Statements of net cost, which show our net cost of operations. We calculate our net costs by subtracting from our gross costs any revenue we earn. We break the statement of net cost into three program 

components: public mission, safety and soundness, and other activity.

• Statements of changes in net position, which show the changes in our net position over the two-year 

period ending Sept. 30, 2022.

• Statements of budgetary resources, which show our resources, the status of our resources, and the 

outlay of resources during the fiscal year.

• Notes to the financial statements, which clarify and provide additional detail regarding the amounts in 

the financial statements.

Not all the statements mentioned in Circular A-136 apply to our agency. For this reason, we do not include a statement of custodial activity, a statement of social insurance, or a statement of changes in social 

insurance amounts.
58 | FCA Performance and Accountability Report — 2022

Balance sheets

As of Sept. 30, 2022 and 2021 

(In dollars)

Balance sheet 

categories

Description 2022 2021

Assets Intragovernmental

Fund balance with Treasury (note 2) $4,511,469 $896,793

Investments (note 3)

Federal investments 42,290,788 39,447,090

Interest receivable — investments 168,610 163,522

Accounts receivable (note 4) 13,365 44,705

Total intragovernmental 46,984,232 40,552,110

With the public

Accounts receivable (note 4) 21,404 6,751

General property, equipment, and software, net

(note 5)

1,105,520 1,487,624

Prepaid expenses 292,494 267,923

Total with the public 1,419,418 1,762,298

Total assets $48,403,650 $42,314,408

Liabilities Intragovernmental

Accounts payable $130,091 $149,254

Other liabilities (note 7)

Other liabilities (without reciprocals) 207,279 194,129

Benefit program contributions payable 760,286 668,224

Total intragovernmental 1,097,656 1,011,607

With the public

Accounts payable 1,270,426 807,594

Actuarial workers’ compensation liability (note 6) 1,561,692 1,533,273

Employer contributions and payroll taxes payable 676,697 656,980

Deferred revenue 9,474,827 6,474,352

Accrued payroll and benefits 8,375,421 9,141,457

Accrued taxes payable 0 15,973

Total with the public 21,359,063 18,629,629

Total liabilities (note 6) $22,456,719 $19,641,236

Net position Cumulative results of operations – funds from 

dedicated collections (note 8)

$25,946,931 $22,673,172

Total net position 25,946,931 22,673,172

Total liabilities and net position $48,403,650 $42,314,408

The accompanying notes are an integral part of these statements.
FCA Performance and Accountability Report — 2022 | 59

Statements of net cost

For the years ended Sept. 30, 2022 and 2021 

(In dollars)

Agency programs Program costs 2022 2021

Public mission Gross costs $22,481,168 $20,209,279

Less: Earned revenue (21,725,126) (18,680,718)

Net program cost $756,042 $1,528,561

Safety and soundness Gross costs $63,424,321 $62,627,132

Less: Earned revenue (61,234,830) (57,887,401)

Net program cost $2,189,491 $4,739,731

Other activity Gross costs $618,091 $830,844

Less: Earned revenue (322,832) (467,605)

Net program cost $295,259 $363,239

Net cost of operations (note 9 and note 14) $3,240,792 $6,631,531

The accompanying notes are an integral part of these statements.
60 | FCA Performance and Accountability Report — 2022

Statements of changes in net position

For the years ended Sept. 30, 2022 and 2021 

(In dollars)

Description 2022 2021

Cumulative results of operations

Beginning balances 

(includes funds from dedicated collections) (note 8)

$22,673,172 $22,894,608

Other financing 

sources 

(Non-exchange)

Imputed financing sources

Federal employee benefits (note 10) 2,864,551 2,760,095

Rent (note 10) 3,650,000 3,650,000

Total financing sources 6,514,551 6,410,095

Net cost of operations (3,240,792) (6,631,531)

Net change 3,273,759 (221,436)

Cumulative results of operations 

(includes funds from dedicated collections)

$25,946,931 $22,673,172

Net position $25,946,931 $22,673,172

The accompanying notes are an integral part of these statements.
FCA Performance and Accountability Report — 2022 | 61

Statements of budgetary resources

For the years ended Sept. 30, 2022 and 2021 

(In dollars)

Statement of budgetary 

resources categories

Description 2022 2021

Budgetary resources Unobligated balance from prior year budget 

authority, net

$23,283,704 $23,124,450

Spending authority from offsetting collections 86,775,766 76,457,995

Total budgetary resources (note 12) $110,059,470 $99,582,445

Status of budgetary 

resources

New obligations and upward adjustments 

(total)

$81,335,892 $76,298,741

Unobligated balance, end of year

Exempt from apportionment, unexpired 

accounts

19,248,751 16,809,352

Exempt from apportionment, not available 9,474,827 6,474,352

Unobligated balance, end of year (total) 28,723,578 23,283,704

Total budgetary resources (note 12) $110,059,470 $99,582,445

Outlays, net Outlays, net (total) (6,862,733) (1,161,341)

Distributed offsetting receipts 0 (25,245)

Agency outlays, net (note 14) $(6,862,733) $(1,186,586)

The accompanying notes are an integral part of these statements.
62 | FCA Performance and Accountability Report — 2022

Notes to the financial statements

Note 1. Summary of significant accounting policies

A. Reporting entity — See the section titled FCA at a Glance on page 7 for details on the reporting entity.

FCA is a component of the U.S. government. For this reason, some of our assets and liabilities may be 

eliminated for governmentwide reporting because they are offset by assets and liabilities of another 

U.S. government entity. These financial statements should be read with the realization that they are 

for a component of the U.S. government. 

B. Basis of accounting and presentation — The financial statements have been prepared in accordance 

with OMB Circular No. A-136, as amended. In addition, the financial statements have been prepared 

on an accrual basis from our books and records in accordance with generally accepted accounting 

principles and the Statements of Federal Financial Accounting Standards (SFFAS) prescribed by the 

Federal Accounting Standards Advisory Board, the official body for setting accounting standards for 

the federal government. Under the accrual method, revenues are recognized when earned, and expenses are recognized when goods or services are received, without regard to receipt of funds or payment of cash. FCA is not subject to apportionment. We have applied budgetary accounting to facilitate 

compliance with legal constraints and control over the use of funds.

C. Budgetary terms — The purpose of federal budgetary accounting is to control, monitor, and report on 

funds made available to federal agencies by law and help ensure compliance with the law. We use the 

following commonly used budgetary terms in this report: 

• Budgetary resources: Amounts available to incur obligations each year. Budgetary resources consist 

of new budget authority for the current budget fiscal year and unobligated balances of budget authority provided in previous years.

• Obligations: A binding agreement that will result in outlays (cash disbursements), immediately or in 

the future. Budgetary resources must be available before obligations can be incurred legally.

• Offsetting collections: Payments to the agency that, by law, are credited directly to expenditure accounts. We are authorized to use these funds for the purposes of carrying out our mission without 

further action from Congress. These funds become our primary form of budget authority each 

year. Offsetting collections and unobligated balances from prior years account for our total budgetary resources.

• Offsetting receipts: Payments to the agency that are credited to offsetting General Fund receipt accounts and are not funds that we are authorized to use in our operations. We transfer these funds to 

Treasury at the end of each fiscal year. 

• Outlays: A payment to liquidate an obligation, also known as a cash disbursement. Outlays are a 

measure of government spending.

D. Fund balance with Treasury — We maintain a revolving, no-year account with the U.S. Treasury 

through which cash receipts and disbursements are processed. We do not receive appropriated funds. 

See note 2.

E. Investments — The Farm Credit Act gives us the authority to invest in public debt securities with 

maturities suitable to our needs. We invest solely in U.S. Treasury securities, which are normally held 

to maturity and carried at cost. Investments are adjusted for unamortized premiums or discounts. 

Premiums and discounts are amortized, and interest is accrued using the level-yield, scientific method 
FCA Performance and Accountability Report — 2022 | 63

of effective interest amortization over the term of the respective issues. We use interest earned on 

investments to build and maintain an agency reserve, which allows us to respond effectively and efficiently to unexpected, unbudgeted expenses without increasing assessments. See note 3.

F. Accounts receivable — Accounts receivable are composed of reimbursements for FCA administrative 

expenses according to agreements with other federal entities, assessments from institutions in accordance with the Farm Credit Act and FCA regulations, and any amounts owed FCA that are generated 

through the normal course of business with employees and vendors.

Amounts due from federal agencies are considered fully collectible. An allowance for uncollectible 

amounts receivable from the public is established when we have determined that the collection is unlikely to occur after considering the debtor’s ability to pay.

The Office of the Chief Financial Officer, in conjunction with the agency’s accounting service provider, 

the Bureau of the Fiscal Service, reviews the agency’s accounts receivable on a regular basis. We have 

determined that all accounts receivable as of Sept. 30, 2022, are fully collectible. See note 4.

G. Advances and prepaid expenses — Payments made before the receipt of goods and services are recorded as advances or prepaid expenses at the time of prepayment and are recognized as expenses 

when the goods and services are received. This process helps to minimize large dollar fluctuations 

in cost and provides for the recognition of cost based on use. When the prepayment amount has 

minimal impact on cost, it is more cost-effective to expense the advance or prepayment at the time of 

payment. We establish advances for prepaid maintenance agreements over $20,000 and for prepaid 

training exceeding $15,000.

H. General property, equipment, and software — Property (including vehicles), equipment, and software are recorded at cost, net of an allowance for accumulated depreciation. Repairs and maintenance costs are expensed as incurred. We capitalize all property and equipment with itemized costs 

of $50,000 or more and a useful life of two years or more. We also capitalize groups of items that 

individually are under $50,000 but together meet the bulk purchase criteria of $500,000 or more. We 

capitalize software when its costs exceed $250,000 and when the software has a useful life of two years 

or more. We use the straight-line method of depreciation with half-year convention to allocate the cost 

of capitalized property, equipment, or software over its estimated useful life. See note 5.

I. Accounts payable — Accounts payable consist of amounts owed to other federal agencies and the 

public. We strive to make payments in a timely manner in accordance with the Prompt Payment Act. 

If payments are late, we pay interest penalties.

J. Liabilities — Liabilities may or may not be covered by budgetary or other resources. All our liabilities 

are covered by budgetary resources except for the actuarial workers’ compensation liability (see note 

6). Intragovernmental liabilities are claims against us by other federal agencies.

K. Funds from dedicated collections – Funds from dedicated collections are financed by specifically 

identified revenues, which remain available over time. These specifically identified revenues are required by statute to be used for designated activities, benefits, or purposes, and must be accounted for 

separately from the government’s general revenues. With our primary source of funding coming from 

the FCS assessments, and intended for the agency’s operations by statute, our funds are all considered 

funds from dedicated collections. See note 8 for additional details.
64 | FCA Performance and Accountability Report — 2022

L. Inter-entity costs — Goods and services are received from other entities at no cost or at a cost less 

than full cost to the providing entity. Consistent with accounting standards, certain costs of the providing entity that are not fully reimbursed by FCA are recognized as imputed cost on the statement of 

net cost and are offset by imputed revenue on the statement of changes in net position. FCA’s inter-entity costs that are reported as imputed costs include federal employee benefits and rent. See note 10.

M.Annual, sick, and other leave — Annual leave, compensatory leave, credit hours, and some other 

types of leave are accrued as a funded liability when earned, with an offsetting reduction for leave 

taken. The accrued leave liability for each of these types of leave is calculated using current pay rates. 

Sick leave and other types of nonvested leave are expensed as the leave is taken. Our methodology 

for calculating the leave liability includes the cost of benefits associated with the compensation. This 

ensures that our estimated liability for leave reflects the current composition of our staff; nearly 

all our employees are under the Federal Employees Retirement System instead of the Civil Service 

Retirement System.

N. Assessments — A substantial portion of our revenues is based on direct assessments billed to the 

System institutions we regulate or examine. We also recognize revenues based on examination services provided by the Office of Examination. We use a formula established in our regulations to calculate assessments. We base each institution’s assessment, in part, on its average risk-adjusted assets and 

its overall financial health.

O. Deferred revenue — Any funds received before the beginning of the new fiscal year are considered 

unearned revenue and are reported as deferred revenue on the balance sheet. These amounts are also 

reported as “exempt from apportionment, not available” on the statement of budgetary resources.

P. Use of estimates — We have made certain estimates and assumptions when reporting assets, liabilities, revenue, and expenses; we have also made estimates and assumptions in the note disclosures. 

Actual results could differ from these estimates. Some estimates include year-end accruals and accrued workers compensation.

Q. Financial data — All amounts presented in this report are in whole dollars.

R. Classified activities — Accounting standards require all reporting entities to disclose that accounting 

standards allow certain presentations and disclosures to be modified, if needed, to prevent the disclosure of classified information. FCA does not have any classified activities. 
FCA Performance and Accountability Report — 2022 | 65

Note 2. Fund balance with Treasury

Description 2022 2021

Status of fund balance with Treasury

Unobligated balance

Available $19,248,751 $16,809,352

Unavailable 9,474,827 6,474,352

Obligated balance not yet disbursed 17,652,003 16,229,144

Subtotal — Status of fund balance 46,375,581 39,512,848

Funds invested with Treasury, net of unamortized discount (41,864,112) (38,616,055)

Total fund balance with Treasury $4,511,469 $896,793

The fund balance with Treasury is an asset account that shows our available cash. The balance in the 

account increases as we collect funds and decreases as we disburse funds. The status of our fund balance with Treasury may be classified as unobligated available, unobligated unavailable, or obligated. 

Unobligated available amounts represent funds available for incurring new obligations. The unobligated 

unavailable amounts include funds not yet available for use and represent the amount of new fiscal year 

assessments received before Oct. 1. These unavailable amounts are also classified as deferred revenue on 

the balance sheet. Amounts noted as “obligated balance not yet disbursed” represent amounts designated 

for payment of goods and services received and not yet paid.

Unobligated balances noted above agree with unobligated balances reported on the Statement of 

Budgetary Resources.

All our funds invested with Treasury are in U.S. Treasury securities.

Note 3. Investments

Amounts for 2022 balance sheet reporting

Intragovernmental 

securities

Cost Amortized 

(premium) 

discount

Investments, 

net

Interest 

receivable

9/30/22 

Investment 

balance

Market value 

disclosure

Nonmarketable: 

market-based

$42,985,786 $(694,998) $42,290,788 $168,610 $42,459,398 $41,195,535

Amounts for 2021 balance sheet reporting

Intragovernmental 

securities

Cost Amortized 

(premium) 

discount

Investments, 

net

Interest 

receivable

9/30/21 

Investment 

balance

Market value 

disclosure

Nonmarketable: 

market-based

$39,836,961 $(389,871) $39,447,090 $163,522 $39,610,612 $39,446,602

Premiums and discounts are amortized, and interest is accrued using the level-yield, scientific method 

of effective interest amortization over the term of the respective issues. Interest revenue on investments 

was $258,623 and $251,147 for FYs 2022 and 2021, respectively.
66 | FCA Performance and Accountability Report — 2022

Note 4. Accounts receivable

Description 2022 2021

Intragovernmental

Reimbursements for services provided $13,365 $44,705

Subtotal 13,365 44,705

With the public

Reimbursements for services provided 6,560 2,359

Expenditure refunds 14,844 4,392

Subtotal 21,404 6,751

Total accounts receivable $34,769 $51,456

The intragovernmental receivables represent reimbursable services provided to USDA and FCSIC but 

unbilled as of Sept. 30. Receivables for services provided to the public represent uncollected amounts related to the cost of examining the National Consumer Cooperative Bank and some employee receivables.

We do not have any uncollectible accounts receivable and therefore do not display any estimate for allowance for uncollectible accounts.

Note 5. General property, equipment, and software

As of Sept. 30, 2022

Type of asset Estimated 

useful life

Depreciation 

method

Acquisition 

value

Accumulated/amortized 

depreciation

Book value

Equipment 3 years Straight line $918,140 $(765,117) $153,023

Equipment 5 years Straight line 498,328 (470,346) 27,982

Equipment 10 years Straight line 305,304 (228,501) 76,803

Internal use 

software

5 years Straight line 1,656,962 (1,331,382) 325,580

Software in

development

522,132 0 522,132

Total $3,900,866 $(2,795,346) $1,105,520

As of Sept. 30, 2021

Type of asset Estimated 

useful life

Depreciation 

method

Acquisition 

value

Accumulated/

amortized depreciation

Book value

Equipment 3 years Straight line $918,140 $(459,070) $459,070

Equipment 5 years Straight line 498,328 (422,157) 76,171

Equipment 10 years Straight line 305,304 (197,971) 107,333

Internal use 

software

5 years Straight line 1,656,962 (1,071,794) 585,168

Software in

development

259,882 0 259,882

Total $3,638,616 $(2,150,992) $1,487,624
FCA Performance and Accountability Report — 2022 | 67

Capitalization thresholds for property and equipment are $50,000 per individual asset and $500,000 for bulk purchase of equipment. Capitalized internal use software is capitalized when costs exceed $250,000.

Note 6. Liabilities not covered by budgetary resources (actuarial workers’ compensation liability)

We record an unfunded liability (liability not covered by budgetary resources) for the actuarial liability under the 

Federal Employees’ Compensation Act (FECA). The actuarial FECA liability is the estimated liability for future 

benefit payments and is recorded as a component of federal employee benefits. The actuarial liability estimate 

for benefits under FECA includes the expected liability for costs associated with death, disability, and medical 

care for approved compensation cases. The estimate also includes costs associated with incurred but unreported 

claims.

The Department of Labor estimates future workers’ compensation liability for specified entities that are preparing statements under the Chief Financial Officers Act and the Government Management Reform Act. Because we 

are not one of the entities for which the Department of Labor provides individual estimates on a routine basis, we 

calculated our estimated FECA actuarial liability amount by using the Department of Labor’s FY 2022 model.

Liability description 2022 2021

Federal Employees’ Compensation Act actuarial liability $1,561,692 $1,533,273

Total liabilities not covered by budgetary resources 1,561,692 1,533,273

Total liabilities covered by budgetary resources 20,895,027 18,107,963

Total liabilities $22,456,719 $19,641,236

Note 7. Other liabilities

There are two categories of intragovernmental other liabilities in our balance sheet. The benefit program contributions payable line represents the employer portion of payroll taxes and benefit contributions, such as retirement, and health and life insurance. These intragovernmental liabilities also include the amount of our funded 

liability for the Federal Employees’ Compensation Act. The other liabilities (without reciprocals) line item refers 

to transactions that are intragovernmental in nature, but no reciprocal balances will be reported by any other 

federal entity. For FCA, these balances relate to accrued liabilities for employees’ withholding taxes under the 

Federal Insurance Contributions Act and hospital insurance tax.

Other liabilities 2022 2021

Intragovernmental

Other liabilities (without reciprocals) $207,279 $194,129

Benefit program contributions payable 760,286 668,224

Total intragovernmental other liabilities 967,565 862,353

Total other liabilities $967,565 $862,353
68 | FCA Performance and Accountability Report — 2022

Note 8. Funds from dedicated collections

Our primary source of funding is the assessment collections from the Farm Credit System and Farmer 

Mac. Collections of the assessments are intended, by statute, to fund our agency operations and are not 

general revenues of the federal government. As such, we classify our funds as dedicated collections.

Description

Total funds from 

dedicated collections 

(consolidated)

FY 2022

Total funds from 

dedicated collections 

(consolidated)

FY 2021

Balance sheet

Intragovernmental

Fund balance with Treasury $4,511,469 $896,793

Investments, net 42,459,398 39,610,612

Accounts receivable, net 13,365 44,705

Total intragovernmental assets 46,984,232 40,552,110

Other than intragovernmental

Accounts receivable, net 21,404 6,751

General property, plant, and equipment, net 1,105,520 1,487,624

Advances and prepayments 292,494 267,923

Total other than intragovernmental 1,419,418 1,762,298

Total assets 48,403,650 42,314,408

Intragovernmental

Accounts payable 130,091 149,254

Other liabilities 967,565 862,353

Total intragovernmental liabilities 1,097,656 1,011,607

Other than intragovernmental

Accounts payable 1,270,426 807,594

Federal employee benefits payable 2,238,389 2,190,253

Other liabilities 17,850,248 15,631,782

Total other than intragovernmental 21,359,063 18,629,629

Total liabilities 22,456,719 19,641,236

Cumulative results of operations 25,946,931 22,673,172

Total liabilities and net position $48,403,650 $42,314,408

Statement of net cost

Gross program costs $86,523,580 $83,667,255

Less: earned revenues (83,282,788) (77,035,724)

Net program costs 3,240,792 6,631,531

Net cost of operations $3,240,792 $6,631,531
FCA Performance and Accountability Report — 2022 | 69

Description

Total funds from 

dedicated collections 

(consolidated)

FY 2022

Total funds from 

dedicated collections 

(consolidated)

FY 2021

Statement of changes in net position

Cumulative results of operations

Beginning balance $22,673,172 $22,894,608

Imputed financing 6,514,551 6,410,095

Net cost of operations (3,240,792) (6,631,531)

Net change in cumulative results of operations 3,273,759 (221,436)

Cumulative results of operations: ending 25,946,931 22,673,172

Net position, end of period $25,946,931 $22,673,172

Note 9. Suborganization program costs

The following tables provide a detailed breakout of the statement of net cost for each of the fiscal years 

ended 2022 and 2021. We display our cost and earned revenue amounts by office within each program.

For the year ended Sept. 30, 2022

Agency 

programs

Program costs Office of 

Examination

Office of 

Regulatory 

Policy

Office of 

Secondary 

Market 

Oversight

Other 

offices

Total

Public 

mission

Gross costs $449,925 $5,477,144 $567,923 $15,986,176 $22,481,168

Less: Earned 

revenue

(432,265) (5,262,164) (461,661) (15,569,036) (21,725,126)

Net program 

cost

17,660 214,980 106,262 417,140 756,042

Safety and 

soundness

Gross costs 36,733,098 260,836 1,421,398 25,008,989 63,424,321

Less: Earned 

revenue

(35,351,385) (250,150) (1,100,066) (24,533,229) (61,234,830)

Net program 

cost

1,381,713 10,686 321,332 475,760 2,189,491

Other 

activity

Gross costs 65,433 515 4,283 547,860 618,091

Less: Earned 

revenue

(34,176) (269) (2,237) (286,150) (322,832)

Net program 

cost

31,257 246 2,046 261,710 295,259

Net cost of operations $1,430,630 $225,912 $429,640 $1,154,610 $3,240,792
70 | FCA Performance and Accountability Report — 2022

For the year ended Sept. 30, 2021

Agency 

programs

Program 

costs

Office of 

Examination

Office of 

Regulatory 

Policy

Office of 

Secondary 

Market 

Oversight

Other 

offices

Total

Public 

mission

Gross costs $412,841 $5,141,388 $523,326 $14,131,724 $20,209,279

Less: Earned 

revenue

(383,409) (4,774,814) (432,124) (13,090,371) (18,680,718)

Net program 

cost

29,432 366,574 91,202 1,041,353 1,528,561

Safety and 

soundness

Gross costs 37,663,274 251,682 1,518,691 23,193,485 62,627,132

Less: Earned 

revenue

(34,936,386) (232,330) (1,255,517) (21,463,168) (57,887,401)

Net program 

cost

2,726,888 19,352 263,174 1,730,317 4,739,731

Other 

activity

Gross costs 207,940 21,164 88 601,652 830,844

Less: Earned 

revenue

(117,030) (11,911) (50) (338,614) (467,605)

Net program 

cost

90,910 9,253 38 263,038 363,239

Net cost of operations $2,847,230 $395,179 $354,414 $3,034,708 $6,631,531

Note 10. Inter-entity costs

Federal employee benefits

Benefit description 2022 2021

Imputed pension costs $393,705 $396,947

Other imputed retirement 

benefits

2,470,846 2,363,148

Total $2,864,551 $2,760,095

We report the amount of our pension expense and other retirement benefits in accordance with SFFAS 

No. 5, Accounting for Liabilities of the Federal Government. These expenses are treated as an imputed 

expense, which is recognized when amounts remitted to OPM are less than the full cost to the government. Corresponding amounts of imputed revenue are recorded to offset the imputed cost.

Pension expenses — Our employees are covered under the Civil Service Retirement System (CSRS) and 

the Federal Employees Retirement System (FERS) to which we make contributions according to plan 

requirements. CSRS and FERS are multiemployer plans. We do not maintain or report information about 

the assets of the plan, nor do we report actuarial data for accumulated plan benefits. The reporting of 

such amounts is the responsibility of OPM.
FCA Performance and Accountability Report — 2022 | 71

Other retirement benefit expenses — We also recognize an expense for the cost of providing health 

benefits and life insurance to our employees after they retire. OPM provides the factors used to calculate 

these costs.

Rent

FCA office description 2022 2021

Leased field offices $1,465,193 $1,410,455

FCA headquarters 2,184,807 2,239,545

Total $3,650,000 $3,650,000

In accordance with the Farm Credit Act, we occupy buildings owned and leased by the Farm Credit 

System Building Association (FCSBA). Our administrative headquarters building and land are in McLean, 

Virginia. In addition, the FCSBA leases office space for field offices on our behalf at various locations 

throughout the United States. Rent is provided at no cost to us. Our imputed rent expense is an estimate based on the FCSBA’s estimated budget for 2022. In accordance with SFFAS No. 4, Managerial Cost 

Accounting Concepts and Standards for the Federal Government, the rent expense and the associated 

imputed revenue are recorded as a nonmonetary transaction.

Note 11. Undelivered orders at the end of the period

As of Sept. 30, 2022, budgetary resources obligated for undelivered orders were as follows:

Type of undelivered orders Federal Nonfederal Total

Paid undelivered orders $0 $292,494 $292,494

Unpaid undelivered orders 183,035 6,604,930 6,787,965

Total undelivered orders $183,035 $6,897,424 $7,080,459

As of Sept. 30, 2021, budgetary resources obligated for undelivered orders were as follows:

Type of undelivered orders Federal Nonfederal Total

Paid undelivered orders $0 $267,923 $267,923

Unpaid undelivered orders 263,933 4,821,566 5,085,499

Total undelivered orders $263,933 $5,089,489 $5,353,422

Note 12. Explanation of differences between the Statement of Budgetary Resources and the 

budget of the U.S. government

SFFAS 7 requires the reporting of material differences between amounts reported in the Statement of 

Budgetary Resources and the actual amounts reported in the Budget of the United States Government.

There are no material differences between the amounts reported in the FY 2021 Statement of Budgetary 

Resources and the FY 2021 actual amounts reported in the FY 2023 Budget of the United States 
72 | FCA Performance and Accountability Report — 2022

Government. The FY 2024 Budget of the United States is not yet available to compare the FY 2022 actual 

amounts to the FY 2022 Statement of Budgetary Resources. The budget is expected to be available in 

February 2023 at https://www.whitehouse.gov/omb/budget/.

Note 13. Incidental custodial collections

Our custodial collections include receipts to cover the costs of fulfilling Freedom of Information Act requests; they also include other receipts, such as interest and penalties. During the fiscal year, we include 

these collections in the Fund Balance with Treasury. However, since these collections are immaterial 

to the financial statements and incidental to our mission, we do not provide a Statement of Custodial 

Activity. Custodial collections totaled $16 for the year ended Sept. 30, 2022, and $25,245 for the year ended 

Sept. 30, 2021. The funds collected during FY 2022 were transferred to the Department of the Treasury at 

the end of FY 2022.

Note 14. Reconciliation of net cost to net outlays

As prescribed by SFFAS 53, Budget and Accrual Reconciliation, this note explains the relationship between our net outlays on a budgetary basis and the net cost of operations during the reporting period. It 

is a reconciliation between budgetary and financial accounting information. 

Budgetary and financial accounting information differ. Budgetary accounting is used for planning and 

control purposes and relates to both the receipt and use of cash. Because financial accounting is intended to provide a picture of the government’s financial operations and financial position, it presents information on an accrual basis. The accrual basis includes information about costs arising from consuming 

assets and incurring liabilities. The analyses in the tables below illustrate this reconciliation by listing the 

key differences between net cost and net outlays.
FCA Performance and Accountability Report — 2022 | 73

For the year ended Sept. 30, 2022

Reconciling items Intragovernmental With the public Total

Net operating cost $22,693,967 $(19,453,175) $3,240,792

Components of net operating cost that are not part of budgetary outlays

Property, plant, and equipment depreciation 

expense

0 (644,354) (644,354)

Increase/(decrease) in assets

Accounts receivable (31,340) 14,653 (16,687)

Other assets 0 24,572 24,572

Investments (399,271) 0 (399,271)

(Increase)/decrease in liabilities not affecting budgetary outlays

Accounts payable 19,163 (462,832) (443,669)

Salaries and benefits 0 (48,136) (48,136)

Other liabilities (105,212) (2,218,467) (2,323,679)

Other financing sources

Imputed federal employee retirement benefit

costs

(2,864,551) 0 (2,864,551)

Imputed rent (3,650,000) 0 (3,650,000)

Total components of net operating cost that 

are not part of budgetary outlays

(7,031,211) (3,334,564) (10,365,775)

Components of budgetary outlays that are not part of net operating cost 

Acquisition of capital assets 0 262,250 262,250

Total components of budgetary outlays that 

are not part of net operating cost 

0 262,250 262,250

Miscellaneous items

Net outlays (calculated total) $15,622,756 $(22,525,489) $(6,862,733)

Related amounts on the Statement of Budgetary Resources

Outlays, net $(6,862,733)
74 | FCA Performance and Accountability Report — 2022

For the year ended Sept. 30, 2021

Reconciling items Intragovernmental With the public Total

Net operating cost $21,735,529 $(15,103,998) $6,631,531

Components of net operating cost that are not part of budgetary outlays

Property, plant, and equipment depreciation 

expense

0 (712,250) (712,250)

Increase/(decrease) in assets

Accounts receivable 13,697 (6,258) 7,439

Other assets (2,396) 53,101 50,705

Investments 670,187 0 670,187

(Increase)/decrease in liabilities not affecting budgetary outlays

Accounts payable (16,631) (422,703) (439,334)

Salaries and benefits 0 (112,894) (112,894)

Other liabilities (136,470) (1,106,962) (1,243,432)

Other financing sources

Imputed federal employee retirement benefit

costs

(2,760,095) 0 (2,760,095)

Imputed rent (3,650,000) 0 (3,650,000)

Total components of net operating cost that 

are not part of budgetary outlays

(5,881,708) (2,307,966) (8,189,674)

Components of budgetary outlays that are not part of net operating cost 

Acquisition of capital assets 0 396,802 396,802

Total components of budgetary outlays that 

are not part of net operating cost 

0 396,802 396,802

Miscellaneous items

Distributed offsetting receipts (25,245) 0 (25,245)

Net outlays (calculated total) $15,828,576 $(17,015,162) $(1,186,586)

Related amounts on the Statement of Budgetary Resources

Outlays, net $(1,186,586)

Note 15. COVID-19 activity

As in FYs 2020 and 2021, we did not use any significant amount of our budgetary resources this year to respond to COVID-19. We also did not receive any budgetary resources under any of the COVID-19 supplemental 

appropriations. Any expenses related to COVID-19 were nominal and immaterial to our overall costs.

76 | FCA Performance and Accountability Report — 2022

Other Information

This section includes the following additional Office 

of Management and Budget reporting requirements:

• A summary of our financial statement audit and 

management assurances

• A summary of the management challenges identified by our inspector general, which includes a 

description of each challenge along with an assessment of the agency’s actions to address those 

challenges

• Our response to the inspector general’s 

assessment

• Our actions to address the Payment Integrity 

Information Act of 2019 requirements

• An update on our annual adjustment on civil 

monetary penalties
FCA Performance and Accountability Report — 2022 | 77

Summary of Financial Statement Audit and 

Management Assurances

FCA has no reported material weakness, and we are in conformance with the Federal Managers’ 

Financial Integrity Act (FMFIA).

Table 10. Summary of financial statement audit

Audit opinion: 	 Unmodified

Restatement: No

Material 

weaknesses

Beginning 

balance

New Resolved Consolidated Ending 

balance

Total material 

weaknesses

0 0 0 0 0

Table 11. Summary of management assurances

Effectiveness of internal control over financial reporting (FMFIA § 2) 

Statement of assurance: Unmodified

Material 

weaknesses

Beginning 

balance

New Resolved Consolidated Reassessed Ending 

balance

Total material 

weaknesses

0 0 0 0 0 0

Effectiveness of internal control over operations (FMFIA § 2) 

Statement of assurance: Unmodified

Material 

weaknesses

Beginning 

balance

New Resolved Consolidated Reassessed Ending 

balance

Total material 

weaknesses

0 0 0 0 0 0

Conformance with federal financial management system requirements (FMFIA § 4)

Statement of assurance: Federal systems conform

Nonconformances Beginning 

balance

New Resolved Consolidated Reassessed Ending 

balance

Total 

nonconformance

0 0 0 0 0 0

Compliance with Federal Financial Management Improvement Act (FFMIA § 803[a])

We are not required to report under this act. 
78 | FCA Performance and Accountability Report — 2022

Management Challenges

October 2022

Farm Credit Administration

Office of Inspector General
FCA Performance and Accountability Report — 2022 | 79

Management Challenges

The Reports Consolidation Act of 2000 requires the Inspector General to provide a summary perspective 

on the most serious management and performance challenges facing the Farm Credit Administration 

(FCA or Agency) and briefly assess the Agency’s progress in addressing those challenges. These 

challenges may reflect ongoing vulnerabilities identified by the Office of Inspector General (OIG) over 

recent years as well as new and emerging issues. The chart below lists the top management challenges 

facing FCA and the pages following the chart provide more depth on each challenge. 

Regulating 

and 

Supervising 

a Complex 

Farm Credit 

System

Operating 

with Less 

Than an 

Ideal Board 

Member 

Composition

Continuous 

Monitoring 

and 

Contingency 

Planning

Recruiting 

and 

Retaining 

Talented 

Employees
80 | FCA Performance and Accountability Report — 2022

CHALLENGE ONE: Regulating and Supervising a Complex Farm Credit System 

As the Farm Credit System (System) becomes more complex, FCA will face 

challenges to address evolving risks, threats, and conditions. The System 

continues to be impacted by changes in the supply chain, labor market, 

interest rates, cybersecurity threats, the collective farm debt, and climate. 

This varied environment creates new needs for examination and supervision 

resources. Because System conditions can change quickly, FCA will need to 

maintain forward-looking plans to ensure staff are equipped with the unique, 

specialized skills to provide effective oversight. Technology, data analytics, 

and risk management systems and approaches also continue to become more 

sophisticated. FCA will be challenged to ensure it has the right tools to keep 

pace with the developments across the System. 

Merger activity also impacts complexity across the System. Merger activity 

has increased, which creates both benefits and risks. FCA will be challenged 

to ensure it has appropriate resources to fully understand and address this 

changing landscape. Risk management tools, specialized training, and 

institutional knowledge will become increasingly important as institutions 

merge and become more complex. Further, as institutions grow, FCA will need to continue to identify 

ways to better understand the impact of merger activities. Specifically, effective supervision and 

oversight will require a nuanced understanding of the impact of changes in geographic diversification, 

risk concentration, and organizational structure on the System as a whole. The complexity of these 

factors is further increased by the unique issues that impact agricultural lending.

Consolidation may also affect other oversight areas. As the number of institutions declines, FCA will be 

challenged to develop policies, guidance, and standards that address the unique circumstances of both 

large and small institutions. The diversity across institutions will require the Agency to understand policy 

impacts to avoid adverse impacts. While large institutions have more risk and complex organizational 

structures, smaller institutions have more limited resources and different approaches to compliance. 

The Agency will be challenged to find the appropriate balance and ensure institutions remain safe and 

sound as their size or structure change.

Overall, changes across the System will place greater demands on Agency resources. Timely and thorough 

identification of corrective actions and appropriate follow-up are critical to preventing the escalation of 

issues and maintaining safety and soundness. The agency also needs to be proactive in order to foresee 

and respond to challenging scenarios. Internal and external factors can lead to significant changes in 

condition in short periods of time. The Agency must be agile to monitor and prevent such conditions 

to protect the System. The Agency must also find the appropriate resource balance. Specifically, the 

Agency will be challenged to maintain a thorough and robust oversight plan while preparing for unique 

or difficult oversight scenarios. The Office of Examination’s FY 2023 National Oversight Plan includes six 

focus areas: risk management practices in an uncertain environment; phaseout of the London Interbank 

Offered Rate; current expected credit losses implementation; young, beginning, and small farmer and 

rancher programs; standards of conduct; and small, low-risk associations.

Regulating 

and 

Supervising 

a Complex 

Farm Credit 

System
FCA Performance and Accountability Report — 2022 | 81

CHALLENGE TWO: Operating with Less than an Ideal Board Member Composition 

FCA faces another challenge in operating for an extended period of time with 

less than a full complement of the Board in non-expired terms.

The Farm Credit Act of 1971, as amended (Act), established FCA as an 

independent agency in the executive branch and vests responsibility for 

managing the Agency in the FCA Board. The Board should consist of three 

presidentially appointed, Senate-confirmed members who are broadly 

representative of the public interest, with no more than two being members 

of the same political party. Board members serve in six-year terms, which 

are staggered and fixed so that a term expires every two years regardless of 

when the member was appointed. The Act provides for board members to 

continue serving after expiration of their term until a successor is appointed 

and confirmed.

The above notwithstanding, the FCA Board operated as a two-member body 

from the death of Board Chairman Dallas P. Tonsager in May 2019 until the 

October 2022 swearing in of Vincent G. Logan to the Board. The resulting 

vacancy, which lasted over three years, was the longest since the current 

structure of the Board was established by the Farm Credit Amendments Act of 1985. While the continued 

service of Board Chairman Glen R. Smith and Board Member Jeffery S. Hall—both of whose terms have 

expired—provided the quorum necessary for the Board to transact business, this extended vacancy 

left the Board without the benefit of a third member to weigh in on the most pressing and important 

decisions facing the Agency. It also left the Board without the bipartisan composition contemplated by 

the Act, as Chairman Smith and Member Hall are members of the same political party.

Although the Board once again has a full complement of members, the fact that two members’ terms 

are expired is less than ideal. Board members in such a ‘holdover’ status may face uncertainty as to 

the length of their continued service, which is dependent upon timing of the appointment of their 

successor. This uncertainty—which Board policy has mitigated in part by allowing certain holdover 

members to perform their official duties from outside the Washington, D.C., area—in turn makes the 

guarantee of a quorum even more tenuous. Without a quorum, a single-member Board would be 

unable to establish general policy or promulgate rules and regulations, leaving the Agency less able to 

carry out its statutory mission. Moreover, extended holdover positions have the potential to undermine 

the independent status of the Agency as a Board member without a fixed term may appear more 

vulnerable to the vagaries of politics.

OIG acknowledges that this challenge is largely outside the Agency’s power to address, as Board 

members are subject to presidential appointment and Senate confirmation.

Operating 

with Less 

Than an 

Ideal Board 

Member 

Composition
82 | FCA Performance and Accountability Report — 2022

CHALLENGE THREE: Continuous Monitoring and Contingency Planning 

in FCA’s Information Technology Security Program

As noted in OIG’s Fiscal Year 2022 Federal Information Security and 

Modernization Act Audit Report, FCA‘s information technology security 

program faces significant challenges in meeting the requirements of 

continuous monitoring and contingency planning. Cybersecurity threats 

and vulnerabilities present significant challenges to information technology 

security. These challenges require a security program that is responsive, agile, 

and forward-looking. Security events and breaches across the world highlight 

the prevalence of cybersecurity threats and risks and the importance of robust 

detection and prevention processes. 

Continuous Monitoring

FCA is behind on the implementation of certain requirements in meeting 

continuous monitoring standards—requirements that involve costly resources 

to ensure successful implementation. Notwithstanding the challenge of 

resources, the Agency is planning to implement Continuous Diagnostics and 

Mitigation tools. 

Information technology and security requirements and guidance frequently change. It is imperative 

that FCA’s systems are able to adapt and change as needed. The new efforts and resource allocations 

that are planned should enhance its ability to get back on track with updates and enhancements 

to meet requirements and standards. However, implementation in these areas is not easy and will 

continue to challenge the Agency.

Contingency Planning 

FCA is also challenged by contingency planning efforts. While safety and security are everyone’s 

responsibility, the Agency designated two offices with the majority of emergency preparedness and 

continuity of operations responsibilities—the Office of Agency Services and the Office of Information 

Technology. The COVID-19 pandemic posed challenges for the FCA workforce and for contingency 

planning. The new working environment added a new layer of complexity given the reliance on personally 

managed internet connections and the resources and support needed for a secure environment while 

keeping the health and safety of FCA staff the utmost priority. As a result, certain contingency planning 

efforts and testing of plans and systems became less of a priority, leaving certain aspects of the Agency’s 

contingency planning program ineffective.

The Agency will continue to be challenged on meeting all the requirements of an information technology 

security program. However, regularly testing the contingency plans and information systems is an 

important way to ensure that services provided by information systems are able to operate effectively 

and without excessive interruption. The Agency has indicated there are plans to complete contingency 

plan testing in 2023.

Continuous 

Monitoring 

and 

Contingency 

Planning
FCA Performance and Accountability Report — 2022 | 83

CHALLENGE FOUR: Recruiting and Retaining Talented Employees

A significant management challenge facing all FCA offices is recruiting and 

retaining a talented workforce. The Agency’s success depends greatly on its 

ability to recruit, retain, and develop an able workforce. The Agency will need 

to be proactive in its human capital management with competitive recruiting 

and retention programs and developing a diverse and inclusive workforce and 

workplace environment. 

The Agency is facing a competitive employment market where employees, 

especially early career employees, will choose an employer with an in-office/

telework hybrid workplace model over an employer with rigid onsite work 

requirements. Employees throughout the public and private workforces 

adapted to working from home productively during the COVID-19 pandemic. 

The federal workforce has largely returned to the office while retaining some 

telework flexibilities. Employees want to retain the telework and scheduling 

flexibilities gained during the pandemic. 

The Agency is challenged with retaining and developing expertise in a tight employment market. Early 

and mid-career employees are looking not only for a flexible workplace, but competitive compensation, 

evermore so in inflationary times. In a tight employment market, early career employees can more 

easily “chase the dollar” and move on to the next employer for a marginal increase in salary. As a 

regulatory agency with a non-General Schedule salary structure, the Agency has competitive federal 

salaries. However, FCA is also competing against private sector compensation and benefit packages. 

The Agency will need to continually implement and enhance salary and benefit programs that make its 

employees want to stay after they are recruited. 

Workforce training and development can also help ensure that FCA maintains a vital, experienced 

staff. Programs such as job sharing, rotational details, intra-office micro-assignments, and mentorships 

can promote career development as well as cultivate a sense that FCA is an employer rich with career 

opportunities. 

Diversity is another important aspect of recruiting and retaining a talented workforce in a competitive 

employment market. The Agency must continually assess and implement strategies, such as evaluating 

FCA’s recruiting data, to reach its diversity and inclusion (D&I) goals. The Agency will need to employ 

various tools that identify and reduce potential barriers to D&I, while continuing to foster appreciation 

in its workforce with programs that celebrate D&I and promote outreach and education. 

Employees are FCA’s most valuable asset. In this employment market, the Agency must continue to seek 

ways to remain competitive through its compensation and benefits package, and by offering a work 

environment that promotes a work-life balance through flexible schedules and telework and fosters 

diversity, equity, inclusion, and accessibility. The Agency added new employee benefits during FYs 

2022 and 2023, including two pay increases and enhanced leave and student loan benefits for younger 

employees in an effort to retain its workforce. FCA recognizes diversity and inclusion by periodically 

publishing D&I news articles and hosting events throughout the year. 

Recruiting 

and 

Retaining 

Talented 

Employees
84 | FCA Performance and Accountability Report — 2022

Management’s Response to Challenges 

Identified by FCA’s Inspector General

November 8 2022

Ms. Wendy Laguarda

Inspector General

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Ms. Laguarda:

Thank you for the management challenges report that you sent us on Oct. 13. We concur with your assessment 

of these challenges, and we appreciate your analysis. We offer the following feedback on the four challenges you 

identified.

Challenge 1: Regulating and supervising a complex Farm Credit System

As you pointed out, mergers among System institutions have increased recently, and these mergers create both 

challenges and opportunities. To improve our ability to regulate institutions of divergent sizes and complexity, we 

took a number of regulatory steps in FY 2022. For example, we issued guidance on wholesale funding, standards of 

conduct, and the implementation of the current expected credit losses model. We have plans for more regulatory 

actions in FY 2023 to strengthen the safety and soundness of the System and its ability to fulfill its public mission.

In addition, we continue to hire mid-career technical experts in the areas of credit, finance, and operations to 

strengthen our internally developed examination staff; these mid-career hires help us meet the challenges of examining more complex institutions. We have also developed a comprehensive national oversight plan for FY 2023 to 

ensure that our examiners can identify and address any threats to the System.

Challenge 2: Operating with less than an ideal board member composition

This has been a challenge for FCA since the death of Board Chairman Dallas Tonsager in 2019. I am hopeful that 

my recent appointment to the board will mitigate this challenge to some degree. I look forward to benefiting from 

the vast institutional knowledge of my fellow board members and the agency’s senior staff. I also look forward to 

making valuable contributions to the board by sharing my own experience and perspective.

Challenge 3: Continuous monitoring and contingency planning

Thank you for highlighting the challenges posed by cybersecurity threats to the agency; they are indeed daunting. I am excited about our plans to implement new diagnostic and mitigation tools and to integrate them with 

Department of Homeland Security reporting to help protect against these threats. We are also in negotiation with the 

Department of Justice for continuous cybersecurity monitoring with immediate mitigation support. 

FCA is committed to strengthening contingency planning efforts in FY 2023. We have created a dedicated cybersecurity monitoring position and plans for conducting regular tabletop cyber incident exercises. As you noted, our mobile workforce has created challenges for contingency planning; however, it has also created some valuable opportunities to securely improve our mobile workforce. We are continuously adding more mobile workforce capabilities.

Challenge 4: Recruiting and retaining talented employees

In a labor market as tight as we have right now, many public and private organizations are facing the challenge of 

recruiting and retaining talented employees. However, we took many important steps in FY 2022 to address this challenge and will continue to do so in FY 2023. In addition to the employee benefit enhancements that you mentioned in 

your management challenges report, we increased employee development and training opportunities and provided 

flexibility to allow employees to telework more. 

We also strengthened diversity and inclusion in FY 2022. Of 42 hires in the fiscal year, almost 29% were from 

diverse ethnic and racial groups, and more than 7% had disabilities. As a result of these and other key actions, our 

employee engagement score increased to 83%. 

Again, thank you for your insightful analysis. We look forward to working with you and your staff in the coming year.

Sincerely,

Vincent G. Logan 

Board Chairman and CEO
FCA Performance and Accountability Report — 2022 | 85

Payment Integrity Information Act Reporting

The Payment Integrity Information Act of 2019 requires agencies to report annual improper payment 

estimates for OMB-designated high-priority programs and programs that are susceptible to significant 

improper payments. FCA does not have any programs that were designated by OMB as high priority, and 

our risk assessments did not identify any programs or activities that were susceptible to significant improper payments. 

In accordance with legislative requirements and OMB guidance, we conduct risk assessments at least 

once every three years to identify programs that may have a significant risk of improper payments. We 

perform our assessments on contract payments, purchase cards, travel cards, claims and vouchers, and 

payroll. Based on our last risk assessment for the period ended Sept. 30, 2020, we determined that our 

programs and activities are low risk and are not susceptible to significant improper payments. We will 

complete the next assessment in FY 2024 for the period ended Sept. 30, 2023.

Given the size of our agency and our low-risk status for improper payments, recovery audits are not 

cost-effective. The benefits of any recovered amounts would not exceed the cost of a recovery audit program. We work with our service provider to collect identified overpayments. 

On March 23, 2022, our inspector general published her annual report on whether FCA complied with 

reporting requirements for improper payments. The report concluded that we were in compliance and 

there were no recommendations.

Additional information on improper payments can be found on PaymentAccuracy.gov. 
86 | FCA Performance and Accountability Report — 2022

Civil Monetary Penalty Adjustment 

for Inflation

Under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, agencies must 

make annual inflation adjustments to civil monetary penalties and report on these adjustments. Table 12 

shows the adjustments FCA has made this year.

Table 12. Annual inflation adjustments of civil monetary penalties 

Statutory authority Reason for 

penalty

Year 

enacted

Latest 

year of 

adjustment 

(via 

statute or 

regulation)

Current 

penalty 

(dollar 

amount)

Location 

for penalty 

update 

details

Section 5.32(a) of the 

Farm Credit Act of 

1971, as amended

Violation of a final

order

1985 2022 $2,544 87 FR 1331

Section 5.32(a) of the 

Farm Credit Act of 

1971, as amended

Violation of the act 

or regulation

1985 2022 $1,151 87 FR 1331

Section 102(f) of 

the Flood Disaster 

Protection Act of 1973

Pattern or practice 

of committing 

violations of the 

National Flood 

Insurance Program

1994 2022 $2,392 87 FR 1331
FCA Performance and Accountability Report — 2022 | 87

Additional Information

Copies of this report are available on the Farm 

Credit Administration’s website at www.fca.gov/

about/reports-publications.

To request print copies of this report or earlier 

editions, please contact the Office of Congressional 

and Public Affairs at the email address or mailing 

address provided below. You may also call 703-883-

4056 to request a copy.

We would like to hear from you! What did 

you think of our FY 2022 Performance and 

Accountability Report? Did we present information 

in a way you could use? How can we improve our 

report in the future? Any feedback you have time to 

provide would be most appreciated. Please email 

your comments to info-line@fca.gov.

Or send written comments to the following 

address:

Office of Congressional and Public Affairs

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Thank you!

 

The Federal Farm Credit Banks Funding 

Corporation, with the support of the System 

banks, prepares the financial press releases and 

the System’s annual and quarterly information 

statements, which contain the System’s combined 

financial statements. Copies are available on the 

Funding Corporation’s website at www.farmcredit-ffcb.com or from

Federal Farm Credit Banks Funding 

Corporation

10 Exchange Place

Suite 1401

Jersey City, NJ 07302

Telephone: 201-200-8000

The Farm Credit System Insurance Corporation

publishes an annual report. Copies are available on 

FCSIC’s website at www.fcsic.gov or from

Farm Credit System Insurance Corporation

1501 Farm Credit Drive

McLean, VA 22102

Telephone: 703-883-4380

In addition, FCS banks and associations are required by regulation to prepare annual and quarterly financial reports. Copies of these documents 

are available for public inspection at FCA headquarters in McLean, Virginia.
Copies available from

Office of Congressional and Public Affairs 

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102

703-883-4056

www.fca.gov

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