FY 2023 

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.

Accessibility 

This annual report is illustrated with photos of American farmers and ranchers, farm and ranch landscapes, and farm animals. These photographs are artifacted and essential graphs and chart graphics 

are described in readable text.
FCA Performance and Accountability Report — 2023 | 1

Contents

Statement of the 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 14

Stewardship objective 1 highlights 14

Stewardship objective 2 highlights 15

Stewardship objective 3 highlights 15

Resources to achieve our strategic goals 16

Analyses and Highlights of FCA’s Financial Statements 17

Financial highlights  .

Program costs and revenues . 

Limitations of financial statements   

Forward-looking analysis   

Analysis of FCA’s Systems, Controls, and Legal Compliance 24

Strategy for FCA’s financial management system 24

Federal Managers’ Financial Integrity Act 24

Internal control program.  

Prompt Payment Act 25

Debt Collection Improvement Act  .

Improper payments 25

Digital Accountability and Transparency Act  .

Inspector General Act 26

Summary of OIG audit, inspection, and evaluation activities 26

Statement of Assurance  .

Program Performance 28

FCA Performance Report 29

Strategic goals 29

Stewardship objectives 31

Data validation and verification  .
2 | FCA Performance and Accountability Report — 2023

Financial Section   

Statement of the Chief Financial Officer 53

Transmittal Letter of Auditor’s Report 54

Independent Auditor’s Report 55

Financial Statements   

Balance sheets 60

Statements of net cost 61

Statements of changes in net position 62

Statements of budgetary resources 63

Notes to the financial statements  .

Other Information 78

Summary of Financial Statement Audit and Management Assurances 79

Payment Integrity Information Act Reporting 80

Civil Monetary Penalty Adjustment for Inflation 81

Management Challenges 82

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

Additional Information 91

Tables Appearing in Report

Table 1. FY 2023 performance budget versus program costs 16

Table 2. Summarized financial data 17

Table 3. Composition of assets . 

Table 4. Composition of liabilities 18

Table 5. Agency budget  .

Table 6. Funds used based on congressional limitation 20

Table 7. Funds used by major budget category 20

Table 8a. Performance measures and results for goal 1 34

Table 8b. Performance measures and results for goal 2 41

Table 8c. Performance measures and results for stewardship objective 1 43

Table 8d. Performance measures and results for stewardship objective 2   

Table 8e. Performance measures and results for stewardship objective 3 51

Table 9. Summary of financial statement audit  .

Table 10. Summary of management assurances 79

Table 11. Annual inflation adjustments of civil monetary penalties 81
FCA Performance and Accountability Report — 2023 | 3

List of Figures Appearing in Report

Figure 1: FCA organizational chart as of October 2023.  

Figure 2. Percentage of gross costs by agency program 21

Figure 3. Percentage of gross revenue by agency program 21

Figure 4. FY 2023 sources of revenue 22

List of Abbreviations Appearing in Report

CEO chief executive 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

IT information technology

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 — 2023

Statement of the Board Chairman and CEO

November 14, 2023

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

and Accountability Report for Fiscal Year 2023. Unless otherwise indicated, the report covers our activities from Oct. 1, 2022, to Sept. 30, 2023.

In FY 2023, FCA 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, we 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 approximately 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 $485 billion in assets as of June 30, 2023, up 6.2% 

from the year before. Farmer Mac had assets of $27.7 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. Since submitting the 2022 Performance and Accountability Report, we have approved three notices of rulemaking:

• A final rule governing the Farm Credit System’s service to young, beginning, and small farmers 

and ranchers

• A final rule on cyber risk management to enhance Farm Credit System security and spur 

innovation

• An advance notice of proposed rulemaking on the regulatory capital framework for Farmer Mac

We also issued more than a dozen guidance documents to the institutions we regulate, including guidance on stress testing, diversity and inclusion, small business lending, troubled debt restructuring, allowance for credit losses, and requirements from the Consumer Financial Protection Bureau.

Also, for the reporting period from July 1, 2022, to June 30, 2023, we prepared 52 formal reports of examination, 33 interim activity letters, and 75 letters regarding FIRS (Financial Institutions Rating System) 

ratings for System institutions and Farmer Mac. We also responded to 22 inquiries and complaints from 

System borrowers and loan applicants.
FCA Performance and Accountability Report — 2023 | 5

In terms of our ranking on the Partnership for Public Service’s list of Best Places to Work in the Federal 

Government, FCA has had another good year. The Partnership bases its rankings on the results of the 

Federal Employee Viewpoint Survey conducted by the Office of Personnel Management. In March 2023, 

the Partnership announced the 2022 rankings, which placed FCA sixth on the list of best places to work 

among small federal agencies. Furthermore, among these agencies, FCA ranked number 1 in two subcategories: DEIA: Diversity; and Effective Leadership: Supervisors.

Having just completed my first full year as the FCA board chairman and CEO, I have witnessed the talent 

and hard work of FCA employees and their dedication to the agency’s public mission. We look forward to 

continuing to fulfill this important mission in FY 2024 and beyond. 

Vincent G. Logan

Board Chairman and CEO
6 | FCA Performance and Accountability Report — 2023

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 — 2023 | 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 borrower

owned 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 — 2023

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 that member’s 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, 2023, FCA had 357 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 field office facilities. Vincent G. Logan is the board chairman.
FCA Performance and Accountability Report — 2023 | 9

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. This individual 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 Office of the Chief of Staff was established 

by the FCA board in April 2023. The chief of staff 

works closely with the board chairman and CEO, 

the board, and the senior leadership team to advance the agency’s mission. Reporting to the chief 

of staff are the Offices of Agency Services, Chief 

Financial Officer, Congressional and Public Affairs, 

Data Analytics and Economics, Examination, 

Information Technology, and Regulatory Policy, as 

well as the chief risk officer. In addition, the chief of 

staff oversees the development and implementation 

of the agency’s operating and budget plans, and proposes new program initiatives to satisfy the agency’s 

mission requirements and the objectives of the CEO.

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 agencywide 

diversity, inclusion, and equal employment opportunity (EEO) program for FCA and the Farm Credit 

System Insurance Corporation. The office serves 

as the chief liaison with the Equal Employment 

Opportunity Commission and the Office of 

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.
10 | FCA Performance and Accountability Report — 2023

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 fca.gov, select “board policy 

statements” under the Law & regulations tab, then 

select “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 chief risk officer works with agency leaders, the 

risk committee, and key staff to identify, assess, and 

mitigate risks to the fulfillment of the agency’s mission as regulator of the Farm Credit System, including Farmer Mac. To minimize the impact of risks, 

the chief risk officer develops and implements risk 

mitigation plans and controls. The chief risk officer 

collaborates with internal and external stakeholders 

to ensure that effective risk reduction measures are 

in place and provides timely reports to the board and 

executive leaders to support their decision making.

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. This individual 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, the individual serves as the Sunshine 

Act official for the FCA board.

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.
FCA Performance and Accountability Report — 2023 | 11

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

Sherrell Carr, Farm Credit Administration

Figure 1: FCA organizational chart as of October 2023

For an accessible version of this chart, visit 

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 the Chief of Staff 

Maribel Duran —Chief Risk Officer

S. Robert Coleman

—Office of Agency Services 

Vonda Bell

—Office of the Chief Financial 

Officer 

Sandi Walters

—Office of Congressional and 

Public Affairs 

Trevor Reuschel

—Office of Data Analytics and 

Economics 

Jeremy D’Antoni

—Office of Examination 

Michael J. Duffy

—Office of Information 

Technology 

Jerald Golley

—Office of Regulatory Policy 

Kevin Kramp

—Office of Equal Employment 

Opportunity and Inclusion 

Thais Burlew

—Office of General Counsel 

David Grahn*

—Office of Secondary Market 

Oversight †

Thomas R. Fay

—Designated Agency Ethics Official 

Jane Virga

—Secretary to the Board 

Ashley Waldron

—Office of Inspector General 

Wendy R. Laguarda

* Maintains a confidential advisory relationship with

each of the board members.

† Reports to the board for policy and to the CEO 

for administration.
12 | FCA Performance and Accountability Report — 2023

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 2022 – 2026, 

we identified two strategic goals we must meet to 

fulfill our mission. For each goal, we identified 

strategic objectives to achieve the goal, as well as 

a set of performance metrics to monitor our progress in meeting the goal. We also identified three 

stewardship objectives for supporting workforce 

development; advancing FCA's data, technology, 

and cybersecurity work; and managing our agency 

financial resources. 

Our performance report (page 29) shows that we 

met the strategic goals and stewardship objectives 

identified in our strategic plan and met or exceeded 

most of the performance metrics for which there 

are data to measure performance. The following is 

a summary analysis of our performance in reaching our goals. 

Goal 1 highlights 

Ensure a sound financial system that provides 

a sustainable source of credit for agriculture 

and rural America.

For goal 1, we have seven strategic objectives and 

the following performance metrics (see table 8a):

1. Most 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)

2. Percentage of System institutions where supervisory agreement requirements were at least 

substantially met within 18 months of execution. (Target: >80%)

3. Percentage of institutions with satisfactory 

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

(Target: 100%)

4. Percentage of System assets with a 1 or 2 

composite Financial Institution Rating System 

(FIRS) rating. (Target: >98%)

5. Percentage of FCS institutions providing products and services to creditworthy and eligible 

persons. (Target: 100%)

6. FCA solicited comments from the public and 

other interested parties on certain guidance 

and all regulations issued by the agency. 

(Target: Yes)

7. Percentage of direct-lender institutions with 

satisfactory consumer and borrower rights 

compliance. (Target: >90%)

8. The Office of Secondary Market Oversight 

(OSMO) effectively identified emerging risks as 

part of the examination and oversight process. 

(Target: Yes)

9. OSMO took appropriate supervisory and corrective actions. (Target: Yes)

10. OSMO evaluated 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. 

(Target: Yes)

11. OSMO evaluated Farmer Mac’s progress toward 

achieving its mission to provide a source of 

long-term credit and liquidity for qualified 

loans. (Target: Yes)
FCA Performance and Accountability Report — 2023 | 13

12. OSMO assessed the need for new or revised regulatory and policy guidance for Farmer Mac as 

new risks emerged. (Target: Yes)

13. FCA requested input from persons outside of 

FCA for at least 90% of pre-rulemaking projects 

and proposed rules. (Target: Yes)

14. FCA mentioned the importance of rural infrastructure in congressional testimony and public 

communications. (Target: Yes)

15. FCA evaluated System institution requests for 

compliance with agency regulations and guidance regarding investments in rural infrastructure. (Target: Yes)

16. FCA responded to comments from System 

institutions regarding diversity and inclusion 

challenges. (Target: Yes)

17. Percentage of System institutions including 

Farmer Mac with objectives for addressing 

board and workforce diversity within the annual business plan. (Target: 100%)

18. Percentage of System institutions including 

Farmer Mac with contingency plans to preserve 

capital adequacy, earnings capacity, and access 

to funding. (Target: 100%)

19. Percentage of System institutions including 

Farmer Mac addressing cybersecurity threats 

and controls in risk assessments and internal 

audit plans. (Target: 100%)

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 — 2023

20. FCA published a semiannual Unified Agenda 

that outlines the agency’s planned regulatory 

actions for the next 12 to 24 months. (Target: 

Yes)

We achieved or exceeded our targets for most 

metrics associated with goal 1. Metric 2 did not 

apply during this reporting period because the 

agency did not have any supervisory agreements in 

place with FCS institutions. 

For metric 3, only 98% of the banks and associations 

had satisfactory audit and review programs, which 

include corrective action plans; the 100% target 

was not met because one institution’s corrective action plan was not adequate to resolve internal-control program weaknesses. This institution is now 

under an increased level of examination oversight. 

The same applies to metric 18. Only 98% of the 

banks and associations had contingency plans 

to preserve capital adequacy, earnings capacity, 

and access to funding because one of the institutions did not have sufficient contingency plans to 

preserve earnings capacity or adequately address 

negative stress test results.

Goal 2 highlights

Foster the long-term viability of the U.S. 

agricultural economy while supporting young, 

beginning, and small (YBS) farmers, ranchers, 

and aquatic producers.

For goal 2, we have two strategic objectives and the 

following performance metrics (see table 8b):

1. Percentage of direct-lender institutions with 

YBS programs in compliance with YBS regulations. (Target: 100%)

2. FCA published a semiannual Unified Agenda 

that outlines the agency’s planned regulatory 

actions, including YBS, for the next 12 to 24 

months. (Target: Yes)

3. Qualitative and quantitative improvements 

were made to YBS data. (Target: Yes)

4. Percentage of System institutions identifying 

outreach efforts for YBS in their annual business plans. (Target: >90%)

5. FCA facilitated sharing of effective YBS practices among System institution decisionmakers. 

(Target: Yes)

We achieved or exceeded the targets for all metrics 

associated with goal 2. 

Stewardship objective 1 highlights

Ensure a well-trained, engaged, and diverse 

staff working effectively in a safe, efficient, 

and modern workplace. 

For the first stewardship objective, we have four 

sub-objectives and the following performance 

metrics (see table 8c):

1. Ensured recruiting efforts included outreach 

to academic institutions with active diversity 

recruitment programs. (Target: Yes)

2. On the 2023 Federal Employee Viewpoint 

Survey, the agency score was at least equal to 

the composite score for all small agencies on 

the statement “My supervisor demonstrates 

a commitment to workforce diversity (e.g., 

promotion opportunities, development).” 

(Target: Yes)

3. On the Federal Employee Viewpoint Survey, the 

agency score was at least equal to the composite 

score for all small agencies on the statement 

“My organization’s management practices 

promote diversity (e.g., outreach, recruitment, 

promotion opportunities). (Target: Yes)

4. Performance management-related policies and 

procedures are current (i.e., updated within 

past two years). (Target: Yes)

5. Percentage of employees whose performance 

plans were established in a timely manner. 

(Target: >95%)

6. Percentage of employees who received midterm performance reviews in a timely manner. 

(Target: >95%)
FCA Performance and Accountability Report — 2023 | 15

7. Percentage of employees who received final 

rating reviews in a timely manner. (Target: 

>95%)

8. On the 2023 Federal Employee Viewpoint 

Survey, the agency score was at least equal to 

the composite score for all small agencies on 

the statement “I know what is expected of me 

on the job.” (Target: Yes)

9. On the 2023 Federal Employee Viewpoint 

Survey, the agency score was at least equal to 

the composite score for all small agencies on 

the statement “I know how my work relates to 

the agency’s goals.” (Target: Yes)

10. At least three training programs were delivered 

annually on working in a hybrid telework environment. (Target: Yes)

11. On the 2023 Federal Employee Viewpoint 

Survey, the agency score was at least equal to 

the composite score for all small agencies on 

the statement “I receive the training I need to 

do my job well.” (Target: Yes)

12. On the 2023 Federal Employee Viewpoint 

Survey, the agency score was at least equal to 

the composite score for all small agencies on 

the statement “Supervisors in my work unit 

support employee development.” (Target: Yes)

13. On the 2023 Federal Employee Viewpoint 

Survey, the agency score was at least equal 

to the composite small agency score on the 

Employee Engagement Index. (Target: Yes)

14. On the 2023 Federal Employee Viewpoint 

Survey, the agency score was at least equal to 

the composite score for all small agencies on 

the statement “Employees are protected from 

health and safety hazards on the job.” (Target: 

Yes)

15. On the 2023 Federal Employee Viewpoint 

Survey, the agency score was at least equal to 

the composite score for all small agencies on 

the statement “My supervisor treats me with 

respect.” (Target: Yes)

We achieved the targets for all metrics associated 

with stewardship objective 1.

Stewardship objective 2 highlights

Ensure data and technology assets are 

accessible, protected, and used effectively in a 

modern environment.

For stewardship objective 2, we have two subobjectives and the following performance metrics 

(see table 8d):

1. One aging technology platform was modernized annually. (Target: Yes)

2. Achieved and maintained not less than 95% 

vulnerability compliance for scanned assets 

that are within FCA’s vulnerability management 

operating procedures. (Target: Yes)

3. Conducted phishing tests in compliance with 

the frequency outlined in OIT’s Phishing Tests 

Standard Operating Procedures. (Target: Yes)

4. Ensured multifactor authentication of FCA end 

user accounts unless excepted. (Target: 100%) 

5. Programming languages, analytical tools, and 

resources were accessible by staff. (Target: Yes)

6. Produced quantitative and qualitative deliverables that are responsive to agency needs. 

(Target: Yes)

7. Provided qualitative and quantitative improve

ments to data inventories and metadata. 

(Target: Yes)

We achieved or exceeded the targets for all metrics 

associated with stewardship objective 2.

Stewardship objective 3 highlights

Ensure sound management and oversight of 

agency financial resources to achieve strategic 

goals.

For stewardship objective 3, we have three subobjectives and the following metrics (see table 8e):

1. Agency received an unmodified audit opinion 

from independent auditors. (Target: Yes)

2. Assessments met the agency regulatory authority. (Target: Yes)
16 | FCA Performance and Accountability Report — 2023

3. Agency maintained interest reserves between 

two months of operating expenses and less 

than 30% of agency budget. (Target: Yes)

We achieved the targets for all metrics associated 

with stewardship objective 3.

Resources to achieve our strategic goals

The strategic goals, as outlined in the strategic 

plan, provide a framework for the development of 

the annual budget request and the performance 

metrics and targets. We formulate and execute our 

budget by allocating resources according to the 

agency’s core mission program activities of policy 

and regulation, and safety and soundness. 

When we formulate and execute our budget, we 

allocate dollars as follows:

• Policy and regulation

• Safety and soundness

• Other activity

Our strategic goals encompass the core program 

activities of policy and regulation and safety and 

soundness. For purposes of the performance 

budget, we established the other activity program 

to track our reimbursable activities. We track these 

activities separately from the two agency mission 

program budgets for policy and regulation, and 

safety and soundness. Table 1 displays the proportion of our budget allocated to each core program 

activity and the proportion of the costs associated 

with each program.

Costs associated with the stewardship objectives in 

our strategic plan are an inherent part of our ability 

to fulfill our agency mission. 

As shown in table 1, actual costs for agency 

programs in FY 2023 differed from amounts 

budgeted; these differences reflect changes in 

focus during the year. For specifics on the agency 

resources expended in support of our agency 

mission, please refer to the program costs and 

revenues section on page 20.

For more information about our performance results, 

see the performance results tables on pages 34–51. 

For governmentwide performance reporting 

results, please refer to www.performance.gov.

Table 1. FY 2023 performance budget versus program costs

Agency programs Percent of total 

performance budget

Percent of total 

program costs

Policy and regulation 23.4% 26.1%

Safety and soundness 75.4% 73.2%

Other activity 1.2% 0.7%

Total 100.0% 100.0%
FCA Performance and Accountability Report — 2023 | 17

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.

• 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 

2023 and 2022. The following sections provide 

additional detail on these financial data. Our financial statements are provided on pages 60–76. 

FCA’s assets, liabilities, and net position

As shown in table 3, our total assets (the resources 

we own) for FY 2023 are composed of the following:

• Fund Balance with Treasury (9.9%)

• Investments (85.8%)

• Accounts receivable and prepayments (0.5%)

• Property and equipment (3.8%)

Table 2. Summarized financial data

Key measure FY 2023 FY 2022 Percentage 

change

Total assets $45,892,497 $48,403,650 (5.2%)

Total liabilities $22,641,411 $22,456,719 0.8%

Net position $23,251,086 $25,946,931 (10.4%)

Total budgetary resources $115,056,633 $110,059,470 4.5%

Net outlays $2,792,053 $(6,862,733) 140.7%

Net cost of operations $10,924,197 $3,240,792 237.1%

Full-time equivalent 325.40 312.68 4.1%
18 | FCA Performance and Accountability Report — 2023

Table 4. Composition of liabilities

Liabilities FY 2023 FY 2022 Percentage 

change

Accounts payable $846,437 $1,400,517 (39.6%)

Accrued	liabilities	(payroll	and	benefits) 9,533,255 8,375,421 13.8%

Employer contributions and taxes payable 1,814,294 1,611,932 12.6%

Workers’ compensation (funded and unfunded) 1,534,012 1,594,022 (3.8%)

Deferred revenue 8,913,413 9,474,827 (5.9%)

Total liabilities $22,641,411 $22,456,719 0.8%

During FY 2023, total assets decreased by 

$2,511,153, or 5.2%, from amounts reported in 

FY 2022.

Property and equipment accounted for the largest 

increase in assets. We added capitalized software 

and software in development to our capitalized 

property this past year. 

As of Sept. 30, 2023, the agency held $4,562,164 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 small increase in our cash balance 

from 2022 to 2023 was due to a higher influx of 

funds collected after the cutoff time for investing 

on Sept. 30, 2023. 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, decreased by 

$3,093,112 in FY 2023. Our investments decreased 

primarily because we purchased fewer long-term 

securities this fiscal year relative to FY 2022. 

During FY 2023, we purchased $11,944,959 in U.S. 

Treasury securities, using an investment strategy 

that enables us both to maintain a steady cash flow 

for agency operations and to 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. 

Table 3. Composition of assets

Assets FY 2023 FY 2022 Percentage 

change

Fund Balance with Treasury $4,562,164 $4,511,469 1.1%

Investments 39,366,286 42,459,398 (7.3%)

Accounts receivable and prepayments 207,706 327,263 (36.5%)

Property and equipment 1,756,341 1,105,520 58.9%

Total $45,892,497 $48,403,650 (5.2%)
FCA Performance and Accountability Report — 2023 | 19

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 40.9% of our total investment portfolio. 

The remaining balance in the investment portfolio 

is composed 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 (3.7%)

• Payroll and benefits (42.1%)

• Employer contributions and taxes payable 

(8.0%)

• Workers’ compensation (6.8%)

• Deferred revenue (39.4%)

Driven primarily by the increase in accrued liabilities for payroll and benefits, overall liabilities 

(what we owe to the public and other government 

agencies) increased by $184,692, or 0.8%, from 

2022 to 2023.

Our accounts payable decreased by $554,080 this 

year. As of Sept. 30, 2023, we had a lower amount 

in liabilities for services received but not paid (invoice accruals) than we had in 2022. The timing of 

when vendors submit invoices for payment affects 

the number of accruals that must be recorded at 

year-end. 

Accrued liabilities for payroll and related benefits 

increased by $1,157,834 from Sept. 30, 2022, to 

Sept. 30, 2023. This increase resulted from a combination of causes: a higher number of staff on 

board, higher compensation, and an increase in 

the funded leave liability accrual. Employer contributions and payroll taxes payable increased in 

FY 2023 for the same reasons. 

Our net position, which represents the cumulative results of operations since the agency began, 

decreased by $2,695,845, or 10.4%, during FY 2023. 

The net position decreased primarily because of 

the increase 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 62.

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 2023 

and 2022. The overall FY 2023 budget increased by 

4.8% over the 2022 budget.

In FY 2023, we continued to carry out our mission, 

program goals, and objectives within the available 

budget. Our board-approved budget for FY 2023 

was approximately $88.9 million, and the congressional limitation on our spending was $88.5 million. The FY 2022 congressional limitation was 

$84.2 million. The congressional limitation is the 

Table 5. Agency budget

Budget funding sources FY 2023 FY 2022 Difference

Assessments (current year) $85,300,000 $82,700,000 $2,600,000

Assessments (carryover from prior years) 3,200,000 1,500,000 1,700,000

Reimbursable activity 410,000 610,000 (200,000)

Total $88,910,000 $84,810,000 $4,100,000
20 | FCA Performance and Accountability Report — 2023

spending limit imposed by Congress on the 

nonreimbursable activity portion of our budget for 

the year. It limits the assessment amounts 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. The assessment funds we used in 2023 

amounted to 99.5% of our congressional limitation 

in 2023 (see table 6). 

As table 7 shows, the agency used $6,386,716 more 

in 2023 than in 2022. Dollarwise, the largest increases were across personnel compensation and 

benefits and travel and transportation.

Personnel compensation and benefits increased 

by $7,627,214. This increase is the result of two 

factors: increases in staff and planned increases 

in salaries and promotions. Personnel compensa

tion and benefits continue to account for the most 

significant use of funds at FCA, representing 

approximately 87.5% of the total funds used in 

2023.

With COVID-19 restrictions fully lifted by early 

FY 2023, we saw a large increase in travel expenditures. Funds used for travel in FY 2023 increased 

by $1,159,009 from FY 2022. The amounts spent 

for travel in FY 2023 were close to pre-pandemic 

levels.

Program costs and revenues

This section describes our program costs and revenues for the fiscal years ended Sept. 30, 2023, and 

Sept. 30, 2022. 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 provided in sections of this report that are based on 

budgetary accounting.

Table 6. Funds used based on congressional limitation

Funds used category 2023 Funds used Congressional limitation Percentage used

Assessment funds used* $88,091,610 $88,500,000 99.5%

* 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 2023 FY 2022 Percentage 

change

Personnel compensation and benefits $77,414,574 $69,787,360 10.9%

Travel and transportation 2,386,317 1,227,308 94.4%

Contractual services 5,884,553 7,408,731 (20.6%)

Property and equipment 292,625 1,047,012 (72.1%)

Other 2,495,270 2,616,212 (4.6%)

Total* $88,473,339 $82,086,623 7.8%

* The total funds used include reimbursable activity that is not subject to the congressional limitation.
FCA Performance and Accountability Report — 2023 | 21

We achieve our strategic goals and manage our 

costs with sound business planning and effective 

resource management. The net cost of our programs totaled $10,924,197 for the 12 months ended 

Sept. 30, 2023, compared with $3,240,792 for the 

same period the previous year. While both revenue 

and expenses increased this past year, the rate of 

increase in expenses outpaced revenues, resulting 

in a net cost increase of $7,683,405 from 2022.

The total cost of our programs for FY 2023 is 

$97,715,733, compared with $86,523,580 for FY 2022. 

This represents an increase of $11,192,153, or 

12.9%, from 2022. Figure 2 shows the breakdown 

of FY 2023 and FY 2022 gross costs for each of our 

core program activities. Most of our costs support 

our core program activities. The increase in total 

costs resulted from a combination of increases in 

staff, higher employee compensation, increased 

travel, and an increased leave liability.

Employee salaries and benefits represent our 

greatest overall cost. For 2023, employee compensation totaled $81,884,192, or 83.8%, of total cost. 

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 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 2023 and 

FY 2022 gross revenue allocated to each of our 

core program activities. Earned revenue for 2023 

totaled $86,791,536, up $3,508,748, or 4.2%, from 

2022. Earned revenue increased in 2023 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 — for FY 2023. As one 

would expect, we derive most of our revenue from 

Figure 2. Percentage of gross costs by agency 

program

0%

20%

40%

60%

80%

100% Other 0.7% Other 0.7%

Policy & 

Regulation

26.1%

Policy & 

Regulation

26.0%

Safety & 

Soundness 

73.2%

Safety & 

Soundness 

73.3%

2023 2022

Figure 3. Percentage of gross revenue by agency 

program

0%

20%

40%

60%

80%

100% Other 0.4%

Policy & 

Regulation

26.3%

Policy & 

Regulation

26.1%

Safety & 

Soundness 

73.3%

Safety & 

Soundness 

73.5%

2023 2022

Other 0.4%
22 | FCA Performance and Accountability Report — 2023

assessments (98.3%). Those revenues are used to 

fulfill our core program activities of policy and 

regulation, and the safety and soundness of the 

System.

Policy and regulation program

We invest significant resources in our policymaking, 

regulatory, and corporate activity functions to ensure that the FCS, including Farmer Mac, fulfills its 

policy and regulation mission as mandated by 

Congress. During FY 2023, 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. The 

cost of this program also includes the review of 

borrower complaints and the review and approval 

of FCS institution mergers.

For the fiscal year ended Sept. 30, 2023, the cost of 

our policy and regulation activities was $25,526,038, 

representing an increase of $3,044,870, or 13.5%, 

from the same period the previous year. The cost of 

the policy and regulation program represents 26.1% 

of our total costs for 2023.

Safety and soundness program

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 efforts 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. 

The cost of the examination and supervision of 

the FCS and Farmer Mac increased $8,042,721, or 

12.7%, to $71,467,042. The cost of the safety and 

soundness program rose for the same reasons that 

the cost of the policy and regulation program rose 

— increases in staff and related compensation and 

benefit costs. Safety and soundness program costs 

make up the largest portion of our expenditures at 

the program level: 73.2%. 

Figure 4. FY 2023 sources of revenue

Interest 

1.3% 

Assessments 

98.3%

Reimbursable 

0.4%

Other activity

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

and performing reimbursable services for USDA. 

Costs associated with this category increased by 

$104,562 from 2022 to $722,653. The costs for providing reimbursable services remain relatively low 

compared with the total costs for our core program 

activities of policy and regulation, and safety and 

soundness. Other activity represented approximately 0.7% of our total costs in 2023.

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.
FCA Performance and Accountability Report — 2023 | 23

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 2024, 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 informational memorandum 

about our National Oversight Plan, we will focus on 

the following areas when conducting examinations 

of System institutions in FY 2024:

• Cybersecurity threats and a changing operational environment

• Capital markets loan growth and increased risk 

in large, shared assets and commodity segments

• Long-term financial stewardship

• Stress analysis in a period of heightened volatility and uncertainty

• Standards of conduct

On the regulatory front, we plan to issue several 

advance notices of proposed rulemakings and proposed rules. We also plan to finalize some previously proposed rules, including the proposed rule 

on conservators and receivers, and risk weighting 

of high-volatility commercial real estate. 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 2024.

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, continued inflation, rising interest 

expenses and tighter margins for farmers, and 

regional 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 sustainability 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 chief sustainability officer. 

She ensures that the agency has a purposeful approach to identifying and mitigating environmental impacts.
24 | FCA Performance and Accountability Report — 2023

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. 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.

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).
FCA Performance and Accountability Report — 2023 | 25

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 to be paid no later than 30 

days after we receive a valid invoice for the goods 

and services we’ve received.

During FY 2023, we paid on time 100% of the 

2,964 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 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 is 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 

our agency does not receive federal tax dollars, 

OMB has determined that FCA is not subject to the 

reporting requirements of the DATA Act.
26 | FCA Performance and Accountability Report — 2023

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 six audit, inspection, or evaluation 

reports during FY 2023, resulting in 20 new recommendations. At the beginning of FY 2023, 17 

recommendations remained open from prior fiscal 

years. Over the course of FY 2023, 20 of the 37 open 

recommendations were closed. As of Sept. 30, 

2023, 17 remained open. The reports are available 

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

the following reviews in FY 2023.

• Farm Credit Administration’s Financial 

Statements (Nov. 10, 2022): The audit included a Management Letter that produced one 

recommendation. 

• Farm Credit Administration’s Examiner Staffing 

Program (Jan. 30, 2023): The audit produced 

seven recommendations.

• Farm Credit Administration’s Compliance with 

the Payment Integrity Information Act of 2019 

for Fiscal Year 2022 (Feb. 22, 2023): The inspection produced no recommendations.

• Farm Credit Administration’s Office of Data 

Analytics and Economics (June 14, 2023): The 

audit produced five recommendations.

• Farm Credit Administration’s Compliance with 

the Federal Information Security Modernization 

Act for Fiscal Year 2023 (July 26, 2023): The audit 

produced no recommendations.

• Farm Credit Administration’s Process for 

Merger Activities in the Farm Credit System 

(Sept. 28, 2023): The inspection produced seven 

recommendations.

Summary of OIG recommendations

Open recommendations as of Oct. 1, 2022 17

New recommendations during FY 2023 20

Recommendations closed during FY 2023 20

Open recommendations as of Sept. 30, 2023 17

Recommendations open more than one year 5

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 2023, OIG issued 

the following survey reports:

• Third and Fourth Quarters and Fiscal Year 2022 

Summary (Feb. 2, 2023)

• First and Second Quarters Fiscal Year 2023 (Sept. 

7, 2023)
FCA Performance and Accountability Report — 2023 | 27

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, 2023. 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 13, 2023
28 | FCA Performance and Accountability Report — 2023

Program Performance

This section discusses FCA’s performance against the 

performance goals and metrics identified in the agency’s 

strategic plan for fiscal years 2022–2026. 

This is the first Performance and Accountability Report 

published since implementing the current strategic plan, 

which includes several new performance goals and metrics. 

Therefore, the performance tables at the end of this section 

include data from 2023 only.
FCA Performance and Accountability Report — 2023 | 29

FCA Performance Report

FCA’s 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.

We fulfill our mission by (1) issuing regulations 

and implementing public policy and (2) identifying 

risk and taking corrective action. 

In fiscal year 2022, we undertook a collaborative 

and inclusive process to update our strategic 

plan consistent with guidance from the Office of 

Management and Budget. The following information outlines the goals and objectives of our 

strategic plan and explains the purpose of each. 

The tables at the end of this section include the 

metrics we adopted in our strategic plan to help us 

meet our goals and objectives. They also provide 

the results of those metrics.

Strategic goals

The FCA board adopted two strategic goals for the 

current strategic plan:

• Ensure a sound financial system that provides a 

sustainable source of credit for agriculture and 

rural America. To achieve this goal, we adopted seven strategic objectives, 15 performance 

goals, and 20 metrics.

• Foster the long-term viability of the U.S. 

agricultural economy while supporting young, 

beginning, and small (YBS) farmers, ranchers, 

and aquatic producers. To achieve this goal, we 

adopted two strategic objectives, five performance goals, and five metrics.

Goal 1—Ensure a sound financial system that 

provides a sustainable source of credit for 

agriculture and rural America.

This strategic goal directly reinforces FCA’s mission 

and addresses the following three focus areas: 

• We will consider the challenges facing the 

System’s small versus large associations when 

evaluating merger proposals and administering 

its examination and regulatory programs. 

• We will evaluate the effectiveness of the contingency plans of System institutions and Farmer 

Mac in addressing weather and other environmental threats to agriculture that we identify 

through scenario testing. 

• We will assess the preparedness of System 

institutions and Farmer Mac for cybersecurity 

threats and events.

Goal 1, Strategic objective 1.1: Ensure compliance 

with laws and regulations that support the sound 

financial condition and performance of all System

institutions.

Complying with laws and regulations is crucial for 

System institutions because it helps maintain their 

stability, reputation, and overall health. It protects 

them against legal and operational risks, prevents 

unethical behavior, and maintains the trust of borrowers and other stakeholders. It also fosters transparency, accountability, and fair practices, which 

are essential for the long-term success of financial 

institutions and the broader financial system.
30 | FCA Performance and Accountability Report — 2023

Goal 1, Strategic objective 1.2: Ensure that the 

System makes products and services available to all 

creditworthy and eligible borrowers in an impartial 

manner.

FCA regulations require each direct-lender System 

institution to include in its operating and strategic 

business plan a marketing plan with strategies 

for providing its products and services to all 

creditworthy and eligible prospective borrowers. 

Serving all such borrowers in an impartial manner 

promotes financial inclusion and equity. It allows 

individuals, regardless of their backgrounds, to 

access opportunities for economic growth and risk 

management. This inclusive approach contributes 

to a healthier farm economy, reduces disparities, 

and enables more people to prosper.

Goal 1, Strategic objective 1.3: Ensure that Farmer 

Mac provides secondary market programs that increase the availability of credit and liquidity to agriculture, rural communities, and rural infrastructure.

Farmer Mac helps increase the availability of credit 

in rural communities by giving lenders greater 

liquidity and lending capacity, thus enhancing 

their service to farmers, ranchers, and rural utilities. The statute requires the Farmer Mac board 

to promote the inclusion of qualified loans for 

small farms and family farmers in the agricultural 

mortgage secondary market. FCA, through its 

Office of Secondary Market Oversight, monitors 

and oversees Farmer Mac’s activities. Ensuring that 

Farmer Mac provides effective secondary market 

programs supports agriculture and rural communities by facilitating access to credit and liquidity. 

This, in turn, contributes to increased agricultural 

productivity, job creation, and improved living 

standards in rural areas. Furthermore, secondary 

market programs can attract more investors to 

rural investment projects, ultimately stimulating 

economic growth and resilience in these regions.

Goal 1, Strategic objective 1.4: Promote opportunities for stakeholder engagement when establishing and reviewing regulatory and policy proposals.

Promoting opportunities for stakeholders to engage 

in the regulatory and policy development process 

leads to better decision making. Involving diverse 

stakeholders, including industry representatives, 

borrower advocates, experts, and the public, 

ensures that we consider different perspectives, 

concerns, and expertise when setting policy. This 

collaborative approach helps us identify potential 

pitfalls, unintended consequences, and alternative 

solutions. It also increases transparency and 

accountability, fostering public trust and reducing 

the likelihood of contentious issues arising later. 

Ultimately, engaging stakeholders leads to more 

balanced and well-rounded regulations and 

policies that are more likely to achieve their 

intended goals.

Goal 1, Strategic objective 1.5: Promote System 

lending for, and investments in, rural infrastructure 

to foster the vitality of rural communities.

Supporting rural infrastructure fosters the vitality 

of rural communities by stimulating economic 

growth, improving agricultural productivity, delivering quality services, and attracting further 

investment. This makes current rural residents less 

likely to move away and others more likely to move 

into rural communities. In essence, promoting 

System lending for, and investments in, rural infrastructure strengthens rural communities, ensuring 

they will be there for future generations.

Goal 1, Strategic objective 1.6: Encourage board 

and workforce diversity at System institutions and 

Farmer Mac.

Diverse representation on the board and in the 

workforce ensures that the policies and programs 

of System institutions consider the wide range 

of challenges and needs facing all eligible, creditworthy potential borrowers in their territories. 

Overall, embracing diversity enhances an institution’s effectiveness, adaptability, and relevance.
FCA Performance and Accountability Report — 2023 | 31

Goal 1, Strategic objective 1.7: Ensure that the 

System and Farmer Mac identify and implement 

safeguards to mitigate the potential impact of 

established and emerging risks.

Identifying and implementing safeguards to mitigate the impact of risk is a fundamental part of the 

System’s and Farmer Mac’s responsibility. Doing 

so is critical to their ability to fulfill their roles in 

supporting agriculture and rural communities. 

These safeguards foster financial resilience, stakeholder trust, regulatory compliance, and long-term 

sustainability.

Goal 2 — Foster the long-term viability of the 

U.S. agricultural economy while supporting 

young, beginning, and small (YBS) farmers, 

ranchers, and aquatic producers.

Congress requires that System associations 

maintain programs to provide credit and related 

services to YBS farmers, ranchers, and aquatic 

producers. These programs bolster the agriculture 

industry’s ability to provide for the nation’s food 

needs, maintain economic vitality, and address 

pressing challenges such as sustainability and the 

transition of ag operations from one generation 

to the next. Achieving this goal supports food 

security, economic stability, rural development, 

innovation and sustainability, generational transition, diversity of agriculture, skill development, 

community vibrancy, environmental stewardship, 

and global competitiveness.

Goal 2, Strategic objective 2.1: Promote access 

to YBS lending programs and financial services for

eligible borrowers.

This strategic objective promotes access to YBS 

services for eligible borrowers. This helps ensure that all eligible borrowers in an institution’s 

territory can take advantage of the services the 

institution offers to young, beginning, and small 

producers.

Goal 2, Strategic objective 2.2: Encourage effective outreach by System institutions to promote 

the success of YBS farmers, ranchers, and aquatic 

producers.

This objective helps ensure that System institutions 

reach out to potential YBS borrowers in their territories. Effective outreach is critical to identifying 

groups and individuals who might not otherwise 

know that these services exist. Achieving this 

objective gives more YBS producers the chance to 

succeed.

Stewardship objectives

To support the two strategic goals and reinforce 

the agency’s commitment to fulfilling its mission, 

the FCA board adopted three stewardship objectives for the current strategic plan:

• Ensure a well-trained, engaged, and diverse 

staff working effectively in a safe, efficient, and 

modern workplace. To achieve this objective, 

we have developed 12 performance goals and 15 

metrics.

• Ensure that data and technology assets are 

accessible, protected, and used effectively in 

a modern environment. For this objective, we 

have developed nine performance goals and 

seven metrics.

• Ensure sound management and oversight of 

agency financial resources to achieve strategic 

goals. For this objective, we have developed 

three performance goals and three metrics.

Stewardship objective 1 — Ensure a welltrained, engaged, and diverse staff working 

effectively in a safe, efficient, and modern 

workplace.

FCA has consistently been recognized as one of the 

top 10 best small agencies to work for in the federal government. This objective helps us maintain 

our strong record. It reflects our commitment 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 
32 | FCA Performance and Accountability Report — 2023

the resources and skills they need to excel professionally. The agency achieves this through strategic 

workforce initiatives that help motivate, engage, 

and retain a 21st century workforce.

Stewardship objective 1, Sub-objective 1:

Enhance FCA’s workforce diversity.

Enhancing workforce diversity improves overall 

organizational health. Diverse teams bring together a variety of perspectives, experiences, and ideas, 

fostering innovation and creative problem-solving. 

Diversity also fosters more well-rounded decision 

making, attracts a wider range of talent, reduces 

turnover, promotes fairness and equality, and 

demonstrates responsible public stewardship.

Stewardship objective 1, Sub-objective 2: Ensure 

that employees have clear, measurable performance expectations that are aligned with FCA’s

mission and strategic plan.

Having clear, measurable performance expectations that align with our mission and strategic 

plan is a cornerstone of effective management, 

employee engagement, and organizational success. Clear expectations ensure that employees 

understand their roles, priorities, and how their 

work contributes to the agency’s overall objectives. 

They also provide a basis for evaluating employee 

performance objectively, fostering accountability 

and transparency. Clear expectations also promote 

efficiency and strategic alignment at every level of 

the agency.

Stewardship objective 1, Sub-objective 3: Ensure 

that employees receive targeted professional training and development opportunities.

Targeted training and development opportunities 

foster a skilled, engaged, and adaptable workforce. 

These opportunities help employees acquire new 

skills and knowledge, and enhance their capabilities and job performance. Ongoing training helps 

employees adapt to new technologies, industry 

trends, and changing job requirements. It also encourages innovation by exposing employees to new 

ideas, approaches, and best practices. Investing in 

development shows employees that their growth 

is valued, which can boost job satisfaction, recruitment, retention, and overall engagement.

Stewardship objective 1, Sub-objective 4: Ensure 

that agency policies and practices demonstrate a 

culture of respect and professionalism toward all 

individuals, internal and external to FCA.

A culture of respect and professionalism is foundational for a healthy and successful agency because 

the culture affects employee experiences, productivity, and interactions. As a financial regulator, we 

emphasize ethical conduct among all employees. 

Maintaining a culture of respect and professionalism enhances employee well-being, increases 

productivity, improves retention, and fosters 

collaboration and inclusion.

Stewardship objective 2 — Ensure that 

data and technology assets are accessible, 

protected, and used effectively in a modern 

environment.

This stewardship objective helps ensure that we 

have the data and technology we need to fulfill our 

mission, that we have the means to protect them, 

and that our employees have the skills to use them 

effectively.

Stewardship objective 2, Sub-objective 1:

Safeguard data and technology assets and provide 

technology platforms designed to enhance employee productivity.

Effectively managing our data and technology 

assets ensures that we can harness our employees’ 

full potential, remain secure, make informed decisions, and maintain relevance in a rapidly evolving 

environment. Accessible data promotes better 

decision-making and ensures that our employees 

can respond to challenges and opportunities more 

effectively. Effective use of technology and data 

also fosters innovation by enabling secure exploration and analysis, and the development of responsive solutions. Protecting data safeguards against 

cyber threats, breaches, and unauthorized access. 
FCA Performance and Accountability Report — 2023 | 33

Stewardship objective 2, Sub-objective 2:

Advance evidence-based policy and organizational 

decision making.

Advancing evidence-based policy and decision 

making ensures that FCA makes well-informed, 

logical, and defensible choices that contribute to 

the agency’s overall success. Decisions rooted in 

evidence reduce the risk of negative consequences, 

foster accountability and trust among stakeholders, and support continuous process improvement 

and strategic alignment.

Stewardship objective 3 — Ensure sound 

management and oversight of agency 

financial resources to achieve strategic goals.

This stewardship objective underscores the importance of accountability and transparency as we 

perform our fiduciary duties.

Stewardship objective 3, Sub-objective 1: Ensure 

accountability and transparency in the execution 

of our fiduciary duties and ability to deliver reliable

financial information to our stakeholders.

Ensuring accountability and transparency in performing fiduciary duties and financial reporting is 

essential to our ability to maintain trust, comply 

with regulations, make informed decisions, and 

ensure the overall health and sustainability of our 

agency. We foster good stewardship of our financial resources by ensuring that we balance the 

amounts assessed to the System and Farmer Mac 

with the costs of ensuring their safety, soundness, 

and mission fulfillment.

Stewardship objective 3, Sub-objective 2: Ensure 

that assessments for Farm Credit System institutions are appropriate based on reasonable costs 

associated with the agency’s examination and

activities.

Appropriate assessments for Farm Credit System 

institutions ensure alignment between our regulatory costs and our mandate as a financial system 

regulator. Our goal is to provide a balanced and 

effective regulatory framework that contributes to 

the stability and integrity of the financial sector. 

Data validation and verification

FCA ensures the completeness, reliability, and 

quality of all reported information included in this 

report through validation of performance data and 

other information contained in this section. These 

efforts primarily entail regular internal agency 

processes for ensuring accurate data generation, 

entry, and reporting; data integrity; and independent peer review. 

Our data validation and verification activities include 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 and 

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 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.
34 | FCA Performance and Accountability Report — 2023

Table 8a. Performance measures and results for goal 1

July 1, 2022, to June 30, 2023

Metric SO1.1.a: Most 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)

Results: Seven rules met the reporting requirement. The objectives listed in the preamble of 

the final rules were met on the two-year anniversary of the implementation date.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric SO1.1.b: Percentage of System institutions 

where supervisory agreement requirements were 

at least substantially met within 18 months of 

execution. (Target: >80%)

Results: The agency does not have any supervisory agreements in place with FCS institutions. 

This metric is not applicable as of June 30, 2023.

2023 Target 2023 Results Results vs. target

>80% N/A N/A

Metric SO1.1.c: Percentage of institutions with 

satisfactory audit and review programs, including 

institutions with acceptable corrective action plans. 

(Target: 100%)

Results: Our oversight and examination program 

specifically emphasizes strong internal controls

at all System institutions, including internal 

controls over financial reporting. In 2023, 98%

of institutions had satisfactory audit and review 

programs, which include acceptable corrective 

action plans. However, the 100% target was not 

met because one institution’s corrective action

plan was not adequate to resolve internal-control 

program weaknesses. This institution is now under an increased level of examination oversight.

2023 Target 2023 Results Results vs. target

100% 98% ▼

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.
FCA Performance and Accountability Report — 2023 | 35

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric SO1.1.d: Percentage of System assets with a 

1 or 2 composite Financial Institution Rating System 

(FIRS) rating. (Target: >98%)

Results: FCA uses the FIRS to assess the safety 

and soundness of each FCS institution. Similar to 

the systems used by other federal banking regulators, FIRS is a framework of component and 

composite ratings to help examiners evaluate 

significant financial, asset quality, and manage

ment factors. FIRS ratings range from 1 for a 

sound institution to 5 for an institution likely 

to fail. In 2023, 99% of all System assets (which 

include loans to borrowers, System investments, 

and acquired property) were held by institutions 

with a 1 or 2 composite FIRS rating, exceeding 

the target on this metric.

2023 Target 2023 Results Results vs. target

>98% >99% ▲

Metric SO1.2.a: Percentage of FCS institutions providing products and services to creditworthy and 

eligible persons. (Target: 100%)

Results: FCA regulations require each directlender 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 

2023, 100% of FCS institutions had satisfactory 

operating, marketing, and strategic plans for providing products and services to all creditworthy 

and eligible persons.

2023 Target 2023 Results Results vs. target

100% 100% ✓

Metric SO1.2.b: FCA solicited comments from 

the public and other interested parties on certain 

guidance and all regulations issued by the agency. 

(Target: Yes)

Results: FCA published a solicitation for comment on regulatory burden in the Federal Register in addition to publishing other proposed 

rules and advance notices of proposed rulemaking. The public and other interested parties were 

invited to comment on these publications. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓
36 | FCA Performance and Accountability Report — 2023

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric SO1.2.c: Percentage of direct-lender institutions with satisfactory consumer and borrower rights 

compliance. (Target: >90%)

Results: Our examiners regularly evaluate 

compliance with consumer and borrower rights 

regulations by reviewing policies, programs, processes, and loans. In 2023, 100% of direct-lender 

institutions had satisfactory consumer and 

borrower rights compliance.

2023 Target 2023 Results Results vs. target

>90% 100% ▲

Metric SO1.3.a: The Office of Secondary Market

Oversight (OSMO) effectively identified emerging

risks as part of the examination and oversight 

process. (Target: Yes)

Results: FCA, through OSMO, monitors and oversees Farmer Mac’s activities. We effectively identify risk by completing an annual risk assessment 

of Farmer Mac’s operations to determine where

to focus examination resources and time. In addition, we issue an annual informational memorandum to identify specific areas of emphasis

during the upcoming examination cycle. We 

identify these focus areas during our annual 

planning process and consider them for updates 

based on the results of our ongoing monitoring 

and oversight.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric SO1.3.b: OSMO took appropriate supervisory 

and corrective actions. (Target: Yes)

Results: OSMO is responsible for executing the 

examination of Farmer Mac. Through OSMO, 

we issue corrective actions to Farmer Mac that 

warrant the attention of its board and management; the corrective actions aim to improve the 

overall safety and soundness of Farmer Mac. 

We evaluate actions taken to address matters 

requiring attention and recommendations on 

a quarterly basis and summarize progress in 

interim activity letters and the annual report of 

examination. In 2023, actions taken in response 

to our examination activities strengthened Farmer Mac’s operations, and its efforts to address

corrective actions were satisfactory. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓
FCA Performance and Accountability Report — 2023 | 37

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric SO1.3.c: OSMO evaluated 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. (Target: Yes)

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. 

Through OSMO, we evaluated the contents of 

Farmer Mac’s 2023 business plan. We found that

the plan contained strategies for promoting 

and encouraging the inclusion of all qualified

loans, including small and family farm loans, in 

its secondary market programs. In addition, we 

reviewed Farmer Mac’s mission achievement

report, which Farmer Mac submits annually to 

FCA; this report includes activity related to small 

and family farms. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric SO1.3.d: OSMO evaluated Farmer Mac’s progress toward achieving its mission to provide a source 

of long-term credit and liquidity for qualified loans.

(Target: Yes)

Results: Farmer Mac submits an annual mission 

achievement report to FCA, which includes activity related to small and family farms and market 

penetration. Each year during our examination 

of Farmer Mac, we review its mission achievement report, and we document results and 

conclusions in our annual report of examination. 

We included these results in our 2022 report of 

examination, which was issued to Farmer Mac 

in November 2022, and we will include these 

results in our 2023 report. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric SO1.3.e: OSMO assessed the need for new or 

revised regulatory and policy guidance for Farmer 

Mac as new risks emerged. (Target: Yes)

Results: Through OSMO, we assess the need for 

new or revised regulatory and policy guidance 

for Farmer Mac in our annual operating plan. 

If new risks emerge during the year, we make 

adjustments to planned regulatory or policy 

projects. In FY 2023, the FCA board approved an 

advance notice of proposed rulemaking to consider updating Farmer Mac’s regulatory capital

framework. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓
38 | FCA Performance and Accountability Report — 2023

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric SO1.4.a: FCA requested input from persons 

outside of FCA for at least 90% of pre-rulemaking 

projects and proposed rules. (Target: Yes)

Results: FCA regulatory and policy workgroups 

engaged in pre-rulemaking and policy drafting

outreach to the Farm Credit System and other 

interested parties in developing positions for 

board consideration. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric SO1.5.a: FCA mentioned the importance of 

rural infrastructure in congressional testimony and 

public communications. (Target: Yes)

Results: In a speech at the large annual meeting 

of the Farm Credit Council in February 2023, FCA 

Board Chairman Vincent Logan praised the System’s contributions to rural communities, noting

that the System is a significant source of credit to

power, water, and telecommunications cooperatives, as well as to farmer and rancher co-ops. He 

also recognized the System for its investments 

in local communities. The speech is available on 

our website. This issue has also been raised in 

our public board meetings, which are recorded 

and posted to our website. In addition, in recent 

meetings with System institutions and with 

Native American tribal councils, the chairman 

has discussed the System’s support for rural utilities and other infrastructure.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric SO1.5.b: FCA evaluated System institution 

requests for compliance with agency regulations and 

guidance regarding investments in rural infrastructure. (Target: Yes)

Results: With assistance from our Office of Examination and Office of General Counsel, our Office

of Regulatory Policy evaluates all System institution requests and applications for their compliance with agency regulations and guidance.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric SO1.6.a: FCA responded to comments from 

System institutions regarding diversity and inclusion 

challenges. (Target: Yes)

Results: FCA reviews and analyzes all comments 

from System institutions regarding our rules. 

When comments report challenges related to 

diversity and inclusion, we address each comment individually, and where appropriate, we 

will tailor our rules in response to comments 

received.

2023 Target 2023 Results Results vs. target

Yes Yes ✓
FCA Performance and Accountability Report — 2023 | 39

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric SO1.6.b: Percentage of System institutions 

including Farmer Mac with objectives for addressing 

board and workforce diversity within the annual 

business plan. (Target: 100%)

Results: Our Office of Examination has updated

examination guidance and communications 

with the System on our 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 2023, 100% of 

FCS institutions, including Farmer Mac (monitored and overseen by OSMO), had satisfactory 

operating, marketing, and strategic plans for 

addressing board and workplace diversity. In our 

review of Farmer Mac’s 2023 business plan, we

found the plan contained adequate strategies for 

addressing board and workforce diversity.

2023 Target 2023 Results Results vs. target

100% 100% ✓

Metric SO1.7.a: Percentage of System institutions, 

including Farmer Mac, with contingency plans to preserve capital adequacy, earnings capacity, and access 

to funding. (Target: 100%)

Results: Our examination program emphasizes 

adequacy of strategic business plans, focusing 

on capital and portfolio planning. Our examiners 

review each institution’s plans to ensure that the

evaluation of capital needs and capitalization 

goals and strategies includes an assessment of 

key uncertainties in the operating environment. 

Similarly, we evaluate whether stress testing 

scenarios are sufficient to capture the impacts of

the macroeconomic stressors on borrower financial performance and portfolio quality. In 2023, 

98% of the System’s banks and associations had

contingency plans to preserve capital adequacy, earnings capacity, and access to funding. 

However, the 100% target was not met because 

one institution did not have sufficient contingency plans to preserve earnings capacity or 

adequately address negative stress test results. 

This institution is now under an increased level 

of examination oversight. Farmer Mac, which is 

monitored and overseen by OSMO, had a sufficient contingency plan.

2023 Target 2023 Results Results vs. target

100%

Banks and 

associations 

98% 

▼

100% Farmer Mac 

100% ✓
40 | FCA Performance and Accountability Report — 2023

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric SO1.7.b: Percentage of System institutions including Farmer Mac addressing cybersecurity threats 

and controls in risk assessments and internal audit 

plans. (Target: 100%)

Results: Our oversight and examination program 

specifically evaluates how System institutions

address cybersecurity threats and controls in risk 

assessments and internal audit plans. All System 

institutions including Farmer Mac addressed 

cybersecurity threats and controls in 2023 risk 

assessments and internal audit plans.

2023 Target 2023 Results Results vs. target

100% 100% ✓

Metric SO1.7.c: FCA published a semiannual Unified

Agenda that outlines the agency’s planned regulatory

actions for the next 12 to 24 months. (Target: Yes)

Results: The Fall Unified Agenda was published

in January 2023, after approval by the Office

of Management and Budget (OMB). The Spring 

Unified Agenda was published in June 2023, after

OMB approval.

2023 Target 2023 Results Results vs. target

Yes Yes ✓
FCA Performance and Accountability Report — 2023 | 41

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Table 8b. Performance measures and results for goal 2

July 1, 2022, to June 30, 2023

Metric SO2.1.a: Percentage of direct-lender institutions with YBS programs in compliance with YBS 

regulations. (Target: 100%)

Results: We continue to evaluate the effectiveness of association YBS programs in providing 

constructive credit to eligible and creditworthy 

YBS farmers and ranchers. We have also updated 

examination guidance as needed to enhance our 

ability to assess institution efforts and regulatory

compliance in this area. 

2023 Target 2023 Results Results vs. target

100% 100% ✓

Metric SO2.1.b: FCA published a semiannual Unified

Agenda that outlines the agency’s planned regulatory

actions, including YBS, for the next 12 to 24 months. 

(Target: Yes)

Results: The Fall Unified Agenda was published

in January 2023 after OMB approval. The Spring

Unified Agenda was published in June 2023 after

OMB approval.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric SO2.1.c: Qualitative and quantitative improvements were made to YBS data. (Target: Yes)

Results: Next year, FCA plans to transition to a 

new reporting system that will give us a clearer 

picture of YBS lending by allowing us to better 

break down and categorize loan data. Effective

Jan. 1, 2024, FCA will define small farmers and

ranchers as those with gross annual sales of less 

than $350,000, which is more consistent with the 

current agricultural landscape and is in line with 

the Department of Agriculture’s criteria for small

farmers and ranchers. In addition, we instituted 

the nonlending report survey in 2020. The nonlending report provides new insights into YBS 

services and is fundamental to comprehensively 

understanding YBS programs. By combining 

this information with the new YBS reporting on 

lending activity, we will provide a more complete 

view of YBS activity. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓
42 | FCA Performance and Accountability Report — 2023

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric SO2.2.a: Percentage of System institutions 

identifying outreach efforts for YBS in their annual

business plans. (Target: > 90%)

Results: Annually, we review all System institutions’ business plans, including the strategies

related to their YBS programs, for compliance 

with FCA regulations and examination guidance. 

Institutions should include sound, well-considered, and documented strategies and actions 

for marketing their products and services to all 

eligible and creditworthy persons, and for reaching out specifically to YBS farmers and rancher

As part of our examination activities, we also 

review institution annual reports for discussion 

of how they are meeting their mission and how 

successful their outreach efforts have been. In

2023, 100% of FCS institutions identified their

YBS outreach efforts in their operating, marketing, and strategic plans.

2023 Target 2023 Results Results vs. target

>90% 100% ▲

Metric SO2.2.b: FCA facilitated sharing of effective

YBS practices among System institution decisionmakers. (Target: Yes)

Results: FCA held a YBS conference at Colorado 

State University in March 2022, which brought 

together representatives from most System 

institutions to discuss best practices and offer

suggestions on FCA’s rulemaking efforts. A proposed rule was published in the Federal Register 

in June 2022 that would require updates to the 

System’s YBS planning, as well as more System

collaboration. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓
FCA Performance and Accountability Report — 2023 | 43

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Table 8c. Performance measures and results for stewardship objective 1

Note: Reporting period for metrics for stewardship objective 1 is Oct. 1, 2022, to Sept. 30, 2023.

Metric ST1.1.a: Ensured recruiting efforts included

outreach to academic institutions with active diversity recruitment programs. (Target: Yes)

Results: During fall 2022 and spring 2023, FCA recruited from more than 30 colleges and universities, including minority-serving institutions such 

as historically Black colleges and universities, 

Hispanic-serving institutions, and Native American-serving nontribal institutions. Approximately 

two-thirds of the colleges and universities that 

FCA recruited from were among those types of 

institutions. As part of our 2023 reorganization, 

FCA expanded and elevated the Office of Equal

Employment Opportunity and Inclusion to report 

directly to the chairman of the board and CEO. 

The office also established a new position with

a special focus on outreach and employment to 

support internal and external diversity, equity, 

inclusion, and accessibility.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.1.b: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal 

to the composite score for all small agencies on the 

statement “My supervisor demonstrates a commitment to workforce diversity (e.g., promotion opportunities, development).” (Target: Yes)

Results: In 2023, 87% of FCA employees responded positively to this statement. By comparison, the small agency composite score was 80%.

Our employees consistently rate supervisors 

high in the area of diversity and inclusion. On the 

basis of our 2022 survey results, the Partnership 

for Public Service ranked us number 1 for diversity among small agencies on its Best Places to 

Work rankings. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.1.c: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal 

to the composite score for all small agencies on the 

statement “My organization’s management practices

promote diversity (e.g., outreach, recruitment, promotion opportunities). (Target: Yes)

Results: In 2023, 87% of FCA employees responded positively to this statement. By comparison, the small agency composite score was 73%.

In addition to striving for diversity in our recruiting, we foster an inclusive work culture, 

where diverse perspectives and backgrounds 

are celebrated and encouraged through our 
44 | FCA Performance and Accountability Report — 2023

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

employee-led special emphasis programs (SEPs). 

Throughout the year, the SEPs carried out activities consistent with agency leadership focus areas. Here are a few examples of these activities:

• Hosted an information session for agency 

staff on the PACT Act, which expanded the Department of Veterans Affairs health care and

benefits for veterans exposed to burn pits and

other toxic substances.

• Hosted	a	women’s	mentoring	series	that	gave	

female employees an opportunity to share 

their personal and professional experiences, 

and the challenges and opportunities they 

have faced in their FCA careers.

• Created an agency flag policy so that we

could raise a nonofficial flag for the first time

during Pride Month. 

• Published a quarterly diversity, equity, inclusion, and accessibility newsletter to provide 

informal training opportunities and information on these concepts from an employee 

perspective.

• Provided input on work-life policies such as 

parental leave and childcare subsidy. 

• Coordinated special observances and community food and clothing drives. 

Finally, each spring, our employees participate in 

Diversity Day. In 2023, employees in our McLean 

office “took a trip down Route 66.” SEPs created

displays to represent diverse cultures along the 

route. Each display shared stories, explored 

unique foods, and showcased cultural artifacts.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.2.a: Performance management-related 

policies and procedures are current (i.e., updated 

within past two years). (Target: Yes)

Results: In 2022, FCA released a performance 

management overview and quick guide summarizing the performance management cycle and 

highlighting key dates for completing performance plans, conducting midyear reviews, and 

submitting year-end final ratings. FCA’s performance management specialist delivered informational webinars for supervisors and managers 

and issued guidance to help them engage with 

employees throughout the performance year.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.2.b: Percentage of employees whose performance plans were established in a timely manner. 

(Target: >95%)

Results: FCA’s supervisors and managers

demonstrated a commitment to providing employees with clear expectations; they established 

95.8% of all employee performance plans in 

a timely manner. FCA’s performance management specialist monitored the repository of 

performance plans and issued reminders to help 

supervisors meet this metric.

2023 Target 2023 Results Results vs. target

>95% 95.8% ✓
FCA Performance and Accountability Report — 2023 | 45

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric ST1.2.c: Percentage of employees who 

received midterm performance reviews in a timely 

manner. (Target: >95%)

Results: FCA’s supervisors and managers

demonstrated a commitment to providing periodic feedback to employees by timely conducting midyear performance discussions for 95.5% 

of employees.

2023 Target 2023 Results Results vs. target

>95% 95.5% ✓

Metric ST1.2.d: Percentage of employees who 

received final rating reviews in a timely manner.

(Target: >95%)

Results: FCA’s supervisors and managers

demonstrated a commitment to ensuring employees received timely end-of-year performance 

feedback; they completed annual performance 

reviews for 97.7% of employees in a timely 

manner. To help managers and supervisors 

provide quality, timely, and actionable feedback, 

FCA’s performance management specialist

issued reminders and hosted educational webinars and training sessions.

2023 Target 2023 Results Results vs. target

>95% 97.7% ✓

Metric ST1.2.e: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal 

to the composite score for all small agencies on the 

statement “I know what is expected of me on the 

job.” (Target: Yes)

Results: In 2023, 89% of FCA employees responded positively to this statement. By comparison, the small agency composite score was 82%.

FCA’s performance management process and

five-part appraisal system promote clear communication to employees regarding expectations 

on the job. Part I, “Performance Plan Critical 

Elements,” contains narrative descriptions of 

each rating element and the applicable performance standards. Part II, “Agreed-Upon Expectations,” includes goals to be achieved during the 

appraisal period. Part III includes the midterm 

performance review documents for use about six 

months into the appraisal period. These forms 

allow supervisors to enter official comments

on employee performance under each rating 

element, and to provide constructive feedback 

on employee strengths and areas for improvement. Part IV is a summary rating sheet that 

compiles the employee’s numerical ratings for

each plan element and the overall numerical and 

narrative rating. Part V, “Recommended Training 

and Development,” ties the performance ratings 

to training needs, further supporting employee 

growth and clear job expectations.

2023 Target 2023 Results Results vs. target

Yes Yes ✓
46 | FCA Performance and Accountability Report — 2023

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric ST1.2.f: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal 

to the composite score for all small agencies on 

the statement “I know how my work relates to the 

agency’s goals.” (Target: Yes)

Results: In 2023, 95% of FCA employees responded positively to this statement. By comparison, the small agency composite score was 87%.

FCA conducts an inclusive and transparent strategic planning process to set the agency’s long

term goals and objectives. A strategic planning 

workgroup composed of representatives from 

each office developed the strategic plan. Each

member of the workgroup communicated with 

employees within their office, helping employees

to connect agency goals with work at their level. 

Annual operating and budget plans cascade from 

the agency’s strategic plan, further helping employees connect their work duties and objectives 

to organizational goals.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.2.g: At least three training programs were 

delivered annually on working in a hybrid telework 

environment. (Target: Yes)

Results: FCA understands the importance of 

succeeding in a hybrid work environment as 

more and more employees split their workweek 

between the office and home. In 2023, FCA promoted 12 sessions titled “Thriving in a Hybrid 

Environment.” Conducted by the Office of Personnel Management (OPM), this training, which 

was held both in-person and virtually, was designed to help employees understand the hybrid 

environment. These sessions promoted effective

performance management practices, explored 

hybrid norms, established typical processes and 

protocol for individuals and teams, and featured 

OPM’s Hybrid Leadership Model.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.3.a: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal 

to the composite score for all small agencies on the 

statement “I receive the training I need to do my job 

well.” (Target: Yes)

Results: In 2023, 92% of FCA employees responded positively to this statement. By comparison, the small agency composite score was 89%.

FCA recently expanded the number of its eLearning platform (Percipio) licenses in order to grant 

access to all employees. With this platform, 

our employees have access to self-guided skill 

assessments in over 19 disciplines (data skills, 

project management, leadership, business 

operations, programming, cloud computing, 

etc.) that employees can use to benchmark 

their skills. These assessments help employees 

understand their strengths and weaknesses in 
FCA Performance and Accountability Report — 2023 | 47

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

a discipline and offer appropriate training and

development opportunities on the platform. In 

addition, our processes for developing performance appraisals and individual development 

plans help frontline managers have constructive 

conversations with employees about development and how it relates to job performance. 

These processes also help managers to offer

training and development opportunities such as 

details, on-the-job training, and stretch projects.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.3.b: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal 

to the composite score for all small agencies on the 

statement “Supervisors in my work unit support 

employee development.” (Target: Yes)

Results: In 2023, 96% of FCA employees responded positively to this statement. By comparison, the small agency composite score was 84%.

Recognizing that employee development helps 

us achieve our mission, we recently expanded 

the number of eLearning platform (Percipio) 

licenses in order to grant access to all employees. During the first nine months of enterprisewide access, our employees accessed content on 

the platform nearly 2,200 times. In addition to 

using this platform, FCA employees participated 

in 360 trainings, courses, and conferences, which 

were delivered by third-party vendors. This 

represents nearly eight training interactions per 

employee at FCA.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.4.a: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal to 

the composite small agency score on the Employee 

Engagement Index. (Target: Yes)

Results: In 2023, 84% of FCA employees responded positively on this index. By comparison, 

the small agency composite score was 75%.

The Federal Employee Viewpoint Survey Employee Engagement Index uses questions from the 

survey to measure conditions that are conducive 

to employee engagement. Engagement relates 

to employee motivation. The index is composed 

of three subindexes: 

• “Leaders Lead” measures employees’ perceptions of leadership’s integrity, as well as

leadership behaviors such as communication 

and workforce motivation. 

• “Supervisors” measures the interpersonal 

relationship between worker and supervisor, 

including trust, respect, and support. 

• “Intrinsic Work Experience” measures the employees’ feelings of motivation and competency relating to their roles in the workplace. 

Engagement at FCA begins at the top with our 

board members. The chairman and other board 

members are present at almost all FCA events, 

including SEP events and FCA gatherings. In 

addition, by stressing the connection of employees' work to achieving agency goals and by 

promoting employee development, frontline 

supervisors are engaged with employees on a 

day-to-day basis, further supporting employees’

roles in the workplace.

2023 Target 2023 Results Results vs. target

Yes Yes ✓
48 | FCA Performance and Accountability Report — 2023

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric ST1.4.b: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal 

to the composite score for all small agencies on the 

statement “Employees are protected from health 

and safety hazards on the job.” (Target: Yes)

Results: In 2023, 95% of FCA employees responded positively to this statement. By comparison, the small agency composite score was 82%.

Workplace health and safety is a top priority 

of FCA leadership. Not only was FCA a leader 

in health and safety during the pandemic, but 

FCA continues to show a strong commitment to 

employee health and safety in a post-pandemic 

work environment. We offer annual, optional,

in-office influenza vaccine appointments and

grant employees four hours of administrative 

leave for any COVID-19 vaccines recommended 

by the Centers for Disease Control and Prevention. Physical security and safety is also a top 

priority. We test our emergency notification

system each quarter, and we recently redesigned 

our emergency evacuation plan to accommodate 

a hybrid work environment.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST1.4.c: On the 2023 Federal Employee Viewpoint Survey, the agency score was at least equal 

to the composite score for all small agencies on the 

statement “My supervisor treats me with respect.” 

(Target: Yes)

Results: In 2023, 96% of FCA employees responded positively to this statement. By comparison, the small agency composite score was 89%.

Our supervisors generally have very positive 

relationships with those who report to them, 

and the agency supports these relationships by 

providing regular training to help supervisors 

cultivate positive, productive relationships with 

the employees they supervise.

2023 Target 2023 Results Results vs. target

Yes Yes ✓
FCA Performance and Accountability Report — 2023 | 49

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Table 8d. Performance measures and results for stewardship objective 2

Note: Reporting period for metrics for stewardship objective 2 is Oct. 1, 2022, to Sept. 30, 2023.

Metric ST2.1.a: One aging technology platform was 

modernized annually. (Target: Yes)

Results: FCA exceeded the target by modernizing 

five applications. We improved the functionality,

availability, and security of multiple tracking 

systems and payroll applications.

2023 Target 2023 Results Results vs. target

Yes Yes ▲

Metric ST2.1.b: Achieved and maintained not less 

than 95% vulnerability compliance for scanned 

assets that are within FCA’s vulnerability management operating procedures. (Target: Yes)

Results: FCA recognizes how critical it is to 

address vulnerabilities in a timely manner to 

protect our resources. We exceeded the target 

for this metric by ensuring that 100% of covered 

assets were patched or under approved waiver 

as specified in our vulnerability management

operating procedures. 

2023 Target 2023 Results Results vs. target

Yes Yes ▲

Metric ST2.1.c: Conducted phishing tests in compliance with the frequency outlined in the Office of

Information Technology’s Phishing Tests Standard

Operating Procedures. (Target: Yes)

Results: Successful phishing attempts continue 

to be a major contributor to security breaches. 

We conducted a minimum of one phishing 

scenario per month to promote awareness and 

defend against such attacks. As a follow-up, we 

provide tips or one-on-one education to users 

who fail the tests.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST2.1.d: Ensured multifactor authentication 

of FCA end user accounts unless excepted. (Target: 

100%) 

Results: Multifactor authentication is critical to 

strengthening our cybersecurity defenses, which 

protect the confidentiality, integrity, and availability of FCA data and information. In FY 2023, 

we installed multifactor authentication on 100% 

of non-excepted end user accounts. We allowed 

few exceptions, and these were documented and 

approved.

2023 Target 2023 Results Results vs. target

100% 100% ✓
50 | FCA Performance and Accountability Report — 2023

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Metric ST2.2.a: Programming languages, analytical 

tools, and resources were accessible by staff. (Target:

Yes) 

Results: FCA increased the adoption of cloud 

technology and open-source programming languages. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST2.2.b: Produced quantitative and qualitative deliverables that are responsive to agency needs. 

(Target: Yes)

Results: We continued progress on multiple 

FCA initiatives, including operational, safety and 

soundness, and mission components.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST2.2.c: Provided qualitative and quantitative 

improvements to data inventories and metadata. 

(Target: Yes)

Results: FCA established and assigned leadership of the Data Governance Workgroup. We

have defined priorities and developed a clear

plan for additional enhancements and maturity 

assessment for 2024.

2023 Target 2023 Results Results vs. target

Yes Yes ✓
FCA Performance and Accountability Report — 2023 | 51

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

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

▲ indicates we exceeded the FY 2023 target; ✓ indicates we achieved the FY 2023 target; ▼indicates we did not meet the 

FY 2023 target.

Table 8e. Performance measures and results for stewardship objective 3

Note: Reporting period for metrics for stewardship objective 3 is Oct. 1, 2022, to Sept. 30, 2023.

Metric ST3.1.a: Agency received an unmodified audit

opinion from independent auditors. (Target: Yes)

Results: Financial statements provide information that is essential to evaluating our financial

condition. An unmodified opinion reflects our

efforts to ensure proper accounting controls and

application of accounting standards. A clean 

opinion provides assurance that the public 

can rely on our financial statements and data.

FY 2023 is the 30th consecutive year that we have 

received a clean audit opinion.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST3.2.a: Assessments met the agency regulatory authority. (Target: Yes)

Results: In accordance with part 607 of FCA regulations, we issued assessment notices to System 

institutions, including Farmer Mac, before the 

Sept. 15 deadline. The assessed amounts were 

reasonable and sufficient to cover the agency’s

operational needs to carry out its mission as an 

arm’s length regulator.

2023 Target 2023 Results Results vs. target

Yes Yes ✓

Metric ST3.2.b: Agency maintained interest reserves 

between two months of operating expenses and less 

than 30% of agency budget. (Target: Yes)

Results: Section 5.15 of the Farm Credit Act of 

1971, as amended, allows FCA to maintain a 

necessary interest reserve. The FCA board established guidelines for maintaining the reserve. 

These guidelines ensure that we can address 

specific, one-time, unforeseen events without

increasing assessments at a time that may be 

financially difficult for System institutions. For

FY 2023, we maintained the reserve within the 

levels of this metric. 

2023 Target 2023 Results Results vs. target

Yes Yes ✓
52 | FCA Performance and Accountability Report — 2023

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 — 2023 | 53

Statement of the Chief Financial Officer 

November 14, 2023 

I am honored to present the Farm Credit Administration’s 2023 financial statements and the auditor’s 

report on the financial position of the agency as of the fiscal year ended Sept. 30, 2023.

The audit was conducted by an independent public accounting firm contracted with the Office of 

Inspector General. Our agency received an unmodified audit opinion on our financial statements for the 

30th consecutive year. The auditors concluded that FCA’s financial statements are presented fairly, in all 

material respects, and in accordance with U.S. generally accepted accounting principles. 

Our agency will continue enhancing financial and nonfinancial controls as required by the Federal 

Managers’ Financial Integrity Act (FMFIA) and Office of Management and Budget Circular A-123 guidance. We have provided an unmodified statement of assurance that our internal controls and financial 

management systems meet the objectives of FMFIA and that those internal controls operated effectively 

with no identified material weaknesses. 

Our leadership and staff remain committed to sound financial management practices while ensuring the 

ongoing safety and soundness of the Farm Credit System institutions. 

As the arm’s length regulator of the of the Farm Credit System, we are fully funded by the institutions we 

regulate. Our employees understand the importance of strong financial management and conduct FCA’s 

operations with transparency and accountability. We operate effectively and efficiently while complying 

with statutory mandates and federal guidelines.

As always, we remain committed to providing strong financial management, effective internal controls, 

and meaningful budget and performance integration. And we continue to implement process efficiencies and organizational strategies that reduce costs while advancing the agency’s priorities of promoting 

safety and soundness, innovation, diversity, and good governance.

I would like to thank FCA’s leadership, the financial management team, and key staff across the agency 

for their diligence and dedication to public service. Our shared commitment to ensuring accountability 

and transparency in the execution of our fiduciary duties is the foundation of our strong stewardship and 

ability to deliver reliable financial information to our stakeholders. 

Sincerely,

Sandra R. Walters 

Chief Financial Officer
54 | FCA Performance and Accountability Report — 2023

Transmittal Letter of Auditor’s Report

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

November 14, 2023 

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, 2023 and 2022, 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 13, 2023, 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

An accessible version of this letter is at https://www.fca.gov/template-fca/about/FCAOIGFinancialStatementAuditFY23.pdf. 
FCA Performance and Accountability Report — 2023 | 55

An accessible version of this report is at https://www.fca.gov/template-fca/about/FCAOIGFinancialStatementAuditFY23.pdf. 

Independent Auditor’s Report

Certified Public Accountants • Consultants • hrkcpa.com

1052 Highland Colony Parkway, Suite 100 1425 K Street NW, Suite 1120

Ridgeland, MS 39157 Washington, DC 20005

p: 601-605-0722 • f: 601-605-0733 p: 202-558-5162 • f: 601-605-0733

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, 2023, and 2022, 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, 2023, and 2022, 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. 24-01, Audit Requirements for Federal Financial Statements. Our 

responsibilities under those standards and OMB Bulletin No. 24-01 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.
56 | FCA Performance and Accountability Report — 2023

The FCA Board and Inspector General

Farm Credit Administration (continued)

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to (1) obtain reasonable assurance about whether the financial statements as a whole 

are free from material misstatement, whether due to fraud or error, and (2) 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. 24-01, 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 (1) inquiries of management about 

the methods of preparing the RSI and (2) 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. 
FCA Performance and Accountability Report — 2023 | 57

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. Management is responsible for the Other Information. 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 be 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, 2023, 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. 
58 | FCA Performance and Accountability Report — 2023

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, 2023, that 

would be reportable under GAGAS or OMB Bulletin No. 24-01. 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 Government Auditing 

Standards 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. 24-01 in 

considering the entity's internal control and compliance. Accordingly, these reports are not suitable for 

any other purpose. 

November 13, 2023 

Washington, DC 
FCA Performance and Accountability Report — 2023 | 59

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 2023 and FY 2022. 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: policy and regulation, 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, 2023.

• 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 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.
60 | FCA Performance and Accountability Report — 2023

Balance sheets

As of Sept. 30, 2023 and 2022 

(In dollars)

Balance sheet 

categories

Description 2023 2022

Assets Intragovernmental

Fund Balance with Treasury (note 2) $4,562,164 $4,511,469

Investments (note 3)

Federal investments 39,194,183 42,290,788

Interest receivable — investments 172,103 168,610

Accounts receivable (note 4) 3,866 13,365

Advances and prepayments 18,137 0

Total intragovernmental 43,950,453 46,984,232

With the public

Accounts receivable (note 4) 5,656 21,404

General property, equipment, and software, net (note 5) 1,756,341 1,105,520

Prepaid expenses 180,047 292,494

Total with the public 1,942,044 1,419,418

Total assets $45,892,497 $48,403,650

Liabilities Intragovernmental

Accounts payable $53,986 $130,091

Other liabilities (note 7)

Other liabilities (without reciprocals) 237,226 207,279

Liability to the General Fund of the U.S. government

for custodial and other nonentity assets 

2 0

Benefit program contributions payable 851,906 760,286

Total intragovernmental 1,143,120 1,097,656

With the public

Accounts payable 792,451 1,270,426

Actuarial workers’ compensation liability (note 6) 1,503,796 1,561,692

Employer contributions and payroll taxes payable 755,376 676,697

Deferred revenue 8,913,413 9,474,827

Accrued payroll and benefits 9,533,255 8,375,421

Total with the public 21,498,291 21,359,063

Total liabilities (note 6) $22,641,411 $22,456,719

Net position Cumulative results of operations – funds from 

dedicated collections (note 8)

$23,251,086 $25,946,931

Total net position 23,251,086 25,946,931

Total liabilities and net position $45,892,497 $48,403,650

The accompanying notes are an integral part of these statements.
FCA Performance and Accountability Report — 2023 | 61

Statements of net cost

For the years ended Sept. 30, 2023 and 2022 

(In dollars)

Agency programs Program costs 2023 2022

Policy and regulation Gross costs $25,526,038 $22,481,168

Less: Earned revenue (22,806,014) (21,725,126)

Net program cost $2,720,024 $756,042

Safety and soundness Gross costs $71,467,042 $63,424,321

Less: Earned revenue (63,628,856) (61,234,830)

Net program cost $7,838,186 $2,189,491

Other activity Gross costs $722,653 $618,091

Less: Earned revenue (356,666) (322,832)

Net program cost $365,987 $295,259

Net cost of operations (note 9 and note 14) $10,924,197 $3,240,792

The accompanying notes are an integral part of these statements.
62 | FCA Performance and Accountability Report — 2023

Statements of changes in net position

For the years ended Sept. 30, 2023 and 2022 

(In dollars)

Description

Cumulative results of operations

2023 2022

Beginning balances

(includes funds from dedicated collections) (note 8)

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

Other financing 

sources 

(Non-exchange)

Imputed financing sources

Federal employee benefits (note 10) 4,578,352 2,864,551

Rent (note 10) 3,650,000 3,650,000

Total financing sources 8,228,352 6,514,551

Net cost of operations (10,924,197) (3,240,792)

Net change (2,695,845) 3,273,759

Cumulative results of operations

(includes funds from dedicated collections)

$23,251,086 $25,946,931

Net position $23,251,086 $25,946,931

The accompanying notes are an integral part of these statements.
FCA Performance and Accountability Report — 2023 | 63

Statements of budgetary resources

For the years ended Sept. 30, 2023 and 2022 

(In dollars)

Statement of budgetary 

resources categories

Line item description 2023 2022

Budgetary resources Unobligated balance from prior year budget 

authority, net

$28,723,578 $23,283,704

Spending authority from offsetting collections 86,333,055 86,775,766

Total budgetary resources (note 12) $115,056,633 $110,059,470

Status of budgetary 

resources

New obligations and upward adjustments 

(total)

$87,794,208 $81,335,892

Unobligated balance, end of year

Exempt from apportionment, unexpired 

accounts

18,349,012 19,248,751

Exempt from apportionment, not available 8,913,413 9,474,827

Unobligated balance, end of year (total) 27,262,425 28,723,578

Total budgetary resources (note 12) $115,056,633 $110,059,470

Outlays, net Outlays, net (total) 2,798,562 (6,862,733)

Distributed offsetting receipts (6,509) 0

Agency outlays, net (note 14) $2,792,053 $(6,862,733)

The accompanying notes are an integral part of these statements.
64 | FCA Performance and Accountability Report — 2023

Notes to the financial statements

Note 1. Summary of significant accounting policies

A. 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 purposes 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. See the section titled 

FCA at a Glance on page 7 for details on the reporting entity.

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 (available) 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 

of effective interest amortization over the term of the respective issues. We use interest earned on 
FCA Performance and Accountability Report — 2023 | 65

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, 2023, 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 our expenses, 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 represent agency financing 

funded 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.

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 
66 | FCA Performance and Accountability Report — 2023

net cost and are offset by imputed revenue on the statement of changes in net position. FCA’s interentity 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. 

S. New accounting standard — In April 2018, the Federal Accounting Standards Advisory Board issued 

Statement of Federal Financial Accounting Standards 54: Leases. Among other things, this standard 

requires lessees to (1) recognize operating leases as lease assets and lease liabilities on the balance 

sheet and (2) disclose key information about significant leasing arrangements. This standard is effective for the FY 2024 financial statements. Since our rent is provided at no cost, we anticipate that this 

standard will not apply to FCA; however, we will continue to review this new accounting standard to 

determine its impact.
FCA Performance and Accountability Report — 2023 | 67

Note 2. Fund Balance with Treasury

Description 2023 2022

Status of Fund Balance with Treasury

Unobligated balance

Available $18,349,013 $19,248,751

Unavailable 8,913,413 9,474,827

Obligated balance not yet disbursed 16,314,593 17,652,003

Subtotal — Status of fund balance 43,577,019 46,375,581

Funds invested with Treasury, net of unamortized discount (39,014,855) (41,864,112)

Total Fund Balance with Treasury $4,562,164 $4,511,469

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.

No discrepancies exist between the fund balance reflected in the balance sheet and the balances as 

reported by the Department of the Treasury.

All our funds invested with Treasury are in U.S. Treasury securities.

Note 3. Investments

Amounts for 2023 balance sheet reporting

Intragovernmental 

securities

Cost Amortized 

(premium) 

discount

Investments, 

net

Interest 

receivable

9/30/23 

Investment 

balance

Market value 

disclosure

Nonmarketable: 

market-based

$39,423,056 $(228,873) $39,194,183 $172,103 $39,366,286 $38,534,324

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

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 $1,134,715 and $258,623 for FYs 2023 and 2022, respectively.
68 | FCA Performance and Accountability Report — 2023

The Treasury securities we purchase are an asset to FCA and a liability to the U.S. Treasury. Because FCA 

and the U.S. Treasury are both part of the federal government, these assets and liabilities offset each 

other. For this reason, our Treasury securities represent neither an asset nor a liability in the U.S. governmentwide financial statements. 

Treasury securities provide FCA with the authority to draw upon the U.S. Treasury, when redeemed to 

make future payments or other expenditures. The government finances the investment redemptions out 

of accumulated cash balances by raising taxes or other receipts, by borrowing from the public or repaying less debt, or by curtailing other expenditures. 

Note 4. Accounts receivable

Description 2023 2022

Intragovernmental

Reimbursements for services provided $3,866 $13,365

Subtotal 3,866 13,365

With the public

Reimbursements for services provided 4,818 6,560

Expenditure refunds 838 14,844

Subtotal 5,656 21,404

Total accounts receivable $9,522 $34,769

The intragovernmental receivables represent reimbursable services provided to FCSIC but unbilled as of 

Sept. 30. Receivables for services provided to the public represent amounts not yet collected related to 

the cost of examining the National Consumer Cooperative Bank and 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, 2023

Type of asset Estimated 

useful life

Depreciation 

method

Acquisition 

value

Accumulated/Amortized 

depreciation

Book value

Equipment 3 years Straight line $918,140 $(918,140) $0

Equipment 5 years Straight line 555,100 (408,071) 147,029

Equipment 10 years Straight line 305,304 (259,032) 46,272

Internal use 

software

5 years Straight line 2,321,728 (1,530,364) 791,364

Software in

development

771,676 0 771,676

Total $4,871,948 $(3,115,607) $1,756,341
FCA Performance and Accountability Report — 2023 | 69

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

We capitalize assets with a useful life of two years or longer when capitalization thresholds are met. 

Capitalization thresholds for property and equipment are $50,000 per individual asset and $500,000 for 

bulk purchase of equipment. 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 2023 model.

Liability description 2023 2022

Federal Employees’ Compensation Act actuarial liability $1,503,796 $1,561,692

Total liabilities not covered by budgetary resources 1,503,796 1,561,692

Total liabilities covered by budgetary resources 21,137,615 20,895,027

Total liabilities $22,641,411 $22,456,719

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.
70 | FCA Performance and Accountability Report — 2023

Other liabilities 2023 2022

Intragovernmental

Other liabilities (without reciprocals) $237,226 $207,279

Liability to the General Fund of the U.S. government for

custodial and other nonentity assets

2 0

Benefit program contributions payable 851,906 760,286

Total intragovernmental other liabilities 1,089,134 967,565

Total other liabilities $1,089,134 $967,565

Note 8. Funds from dedicated collections

Our primary source of funding is the assessment collections from the Farm Credit System and Farmer 

Mac. By statute, collections of the assessments 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 2023

Total funds from dedicated 

collections (consolidated)

FY 2022

Balance sheet

Intragovernmental

Fund Balance with Treasury $4,562,164 $4,511,469

Investments, net 39,366,286 42,459,398

Accounts receivable, net 3,866 13,365

Advances and prepayments 18,137 0

Total intragovernmental assets 43,950,453 46,984,232

With the public

Accounts receivable, net 5,656 21,404

General property, plant, and equipment, net 1,756,341 1,105,520

Advances and prepayments 180,047 292,494

Total assets with the public 1,942,044 1,419,418

Total assets $45,892,497 $48,403,650

Intragovernmental

Accounts payable $53,986 $130,091

Other liabilities 1,089,134 967,565

Total intragovernmental liabilities 1,143,120 1,097,656

With the public

Accounts payable 792,451 1,270,426

Federal employee benefits payable 2,259,172 2,238,389

Other liabilities 18,446,668 17,850,248

Total liabilities with the public 21,498,291 21,359,063

Total liabilities $22,641,411 $22,456,719

Cumulative results of operations 23,251,086 25,946,931

Total liabilities and net position $45,892,497 $48,403,650
FCA Performance and Accountability Report — 2023 | 71

Description Total funds from dedicated 

collections (consolidated)

FY 2023

Total funds from dedicated 

collections (consolidated)

FY 2022

Statement of net cost

Gross program costs $97,715,732 $86,523,580

Less: earned revenues (86,791,535) (83,282,788)

Net program costs 10,924,197 3,240,792

Net cost of operations $10,924,197 $3,240,792

Statement of changes in net position

Cumulative results of operations

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

Imputed financing 8,228,352 6,514,551

Net cost of operations (10,924,197) (3,240,792)

Net change in cumulative results of 

operations

(2,695,845) 3,273,759

Cumulative results of operations: ending 23,251,086 25,946,931

Net position, end of period $23,251,086 $25,946,931

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 2023 and 2022. We display our cost and earned revenue amounts by office within each program.

For the year ended Sept. 30, 2023

Agency 

programs

Program 

costs

Office of 

Examination

Office of 

Regulatory 

Policy

Office of 

Secondary 

Market Oversight

Other 

offices

Total

Policy and 

regulation

Gross costs $436,860 $6,533,187 $486,484 $18,069,507 $25,526,038

Less: Earned 

revenue

(385,919) (5,744,105) (429,239) (16,246,751) (22,806,014)

Net program 

cost

50,941 789,082 57,245 1,822,756 2,720,024

Safety and 

soundness

Gross costs 41,885,123 341,166 1,176,749 28,064,004 71,467,042

Less: Earned 

revenue

(37,040,840) (299,960) (953,356) (25,334,700) (63,628,856)

Net program 

cost

4,844,283 41,206 223,393 2,729,304 7,838,186

Other 

activity

Gross costs 136,740 0 4,985 580,928 722,653

Less: Earned 

revenue

(67,488) 0 (2,460) (286,718) (356,666)

Net program 

cost

69,252 0 2,525 294,210 365,987

Net cost of operations $4,964,476 $830,288 $283,163 $4,846,270 $10,924,197
72 | FCA Performance and Accountability Report — 2023

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

Policy and 

regulation

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

Note 10. Inter-entity costs

Federal employee benefits

Benefit description 2023 2022

Imputed pension costs $1,784,369 $393,705

Other imputed retirement 

benefits

2,793,983 2,470,846

Total $4,578,352 $2,864,551

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.

Other retirement benefit expenses — We 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.
FCA Performance and Accountability Report — 2023 | 73

Rent

FCA office description 2023 2022

Leased field offices $1,499,178 $1,465,193

FCA headquarters 2,150,822 2,184,807

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 2023. 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, 2023, budgetary resources obligated for undelivered orders were as follows:

Type of undelivered orders Federal Nonfederal Total

Paid undelivered orders $18,137 $180,048 $198,185

Unpaid undelivered orders 169,568 4,324,826 4,494,394

Total undelivered orders $187,705 $4,504,874 $4,692,579

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
74 | FCA Performance and Accountability Report — 2023

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 2022 Statement of Budgetary 

Resources and the FY 2022 actual amounts reported in the FY 2024 Budget of the United States 

Government. The FY 2025 Budget of the United States is not yet available to compare the FY 2023 actual 

amounts to the FY 2023 Statement of Budgetary Resources. The budget is expected to be available in 

February 2024 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 $6,583 for the year ended Sept. 30, 2023, and $16 for the year ended 

Sept. 30, 2022. The funds collected during FY 2023 were transferred to the Department of the Treasury at 

the end of FY 2023.

Note 14. Reconciliation of net cost to net outlays

This note explains the relationship between our net cash 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. Financial accounting, which is intended 

to provide a picture of the government’s financial operations and financial position, 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 — 2023 | 75

For the year ended Sept. 30, 2023

Reconciling items Intragovernmental With the public Total

Net operating cost $25,177,320 $(14,253,123) $10,924,197

Components of net operating cost that are not part of budgetary outlays

General property, equipment, and software

depreciation expense

0 (419,713) (419,713)

Increase/(decrease) in assets

Accounts receivable (9,499) (15,748) (25,247)

Other assets 18,137 (112,447) (94,310)

Investments (243,855) 0 (243,855)

(Increase)/decrease in liabilities not affecting budgetary outlays

Accounts payable 76,105 477,975 554,080

Salaries and benefits 0 (20,783) (20,783)

Other liabilities (121,569) (596,420) (717,989)

Other financing sources

Imputed federal employee retirement 

benefit costs

(4,578,352) 0 (4,578,352)

Imputed rent (3,650,000) 0 (3,650,000)

Total components of net operating cost that 

are not part of budgetary outlays

(8,509,033) (687,136) (9,196,169)

Components of budgetary outlays that are not part of net operating cost 

Acquisition of capital assets 0 1,070,534 1,070,534

Total components of budgetary outlays 

that are not part of net operating cost 

0 1,070,534 1,070,534

Miscellaneous items

Distributed offsetting receipts 0 (6,509) (6,509)

Net outlays (calculated total) $16,668,287 $(13,876,234) $2,792,053 

Related amounts on the Statement of Budgetary Resources

Outlays, net $2,792,053
76 | FCA Performance and Accountability Report — 2023

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

General property, equipment, and software

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

Net outlays (calculated total) $15,662,756 $(22,525,489) $(6,862,733)

Related amounts on the Statement of Budgetary Resources

Outlays, net $(6,862,733)
FCA Performance and Accountability Report — 2023 | 77
78 | FCA Performance and Accountability Report — 2023

Other Information

This section includes the following additional reporting 

required by the Office of Management and Budget:

• A summary of our financial statement audit and 

management assurances

• Our actions to address Payment Integrity Information Act 

requirements

• An update on our annual adjustment on civil monetary 

penalties

• 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
FCA Performance and Accountability Report — 2023 | 79

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 9. 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 10. 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. 
80 | FCA Performance and Accountability Report — 2023

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. Thus, we are not required to submit annual payment information to OMB. 

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, claims and vouchers, purchase cards, travel cards, and 

payroll. Based on our last risk assessment for the period ended Sept. 30, 2020, we determined that our 

programs and activities remain 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 Feb. 22, 2023, 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 in federal programs can be found on PaymentAccuracy.gov. 

We present only summary level information on this website because we do not have any individual programs with annual outlays greater than $10 million.
FCA Performance and Accountability Report — 2023 | 81

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 11

shows the adjustments FCA has made this year.

Table 11. 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 2023 $2,741 88 FR 2197-98

Section 5.32(a) of 

the Farm Credit 

Act of 1971, as 

amended

Violation of the 

act or regulation

1985 2023 $1,240 88 FR 2197-98

Section 102(f) of 

the Flood Disaster 

Protection Act of 

1973

Pattern or practice 

of committing 

violations of 

the National 

Flood Insurance 

Program

1994 2023 $2,577 88 FR 2197-98
82 | FCA Performance and Accountability Report — 2023

MANAGEMENT CHALLENGES

October 12, 2023 

Farm Credit Administration 

Office of Inspector General

For an accessible version of the Management Challenges, please go to 

https://www.fca.gov/template-fca/about/ManagementChallenges2023.pdf.
FCA Performance and Accountability Report — 2023 | 83

2 | P a g e 

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

Innovation 

at FCA and 

the Farm 

Credit 

System

Agility in 

Adapting to 

a Fastchanging 

Information 

Technology 

World

Recruiting 

and 

Retaining a 

Talented and 

Diverse 

Workforce
84 | FCA Performance and Accountability Report — 2023

3 | P a g e 

CHALLENGE ONE: Regulating and Supervising a Complex Farm Credit System

As the Farm Credit System (System) becomes more complex, FCA will continue 

to face challenges in addressing evolving risks, threats, and conditions. The 

System continues to be impacted by changes and uncertainties in interest rates, 

labor markets, the collective farm debt, cybersecurity threats, and climate. This 

varied and unpredictable environment impacts needs for examination and 

supervision resources. Further, technology, data analytics, fintech, and risk 

management systems and approaches in the System continue to become more 

sophisticated. FCA will be challenged to maintain forward-looking plans and 

ensure adequate staffing with specialized skills required to provide effective 

oversight. 

Restructuring and consolidation of institutions also impacts complexity across 

the System. Continued merger activity creates both benefits and risks and FCA 

will be challenged to better understand these risks to foresee and address safety and soundness concerns. 

Risk management tools, specialized training, and institutional knowledge will also become increasingly 

important as the Agency is responsible for evaluating larger and more complex institutions. Effective 

supervision and oversight will require a nuanced understanding of the impact of changes in geographic 

diversification, risk concentration, and organizational structure of the System as a whole. 

Diversity across System institutions and lending also impacts oversight needs and challenges. System 

institutions vary significantly in size, organization, structure, industries served, and geographic factors. 

The complexity of these factors is further increased by the unique issues that impact agricultural lending. 

Ensuring the System meets the credit needs of rural America, including underserved communities, is 

essential to the success and growth of the System. The Agency will be challenged to ensure the System 

is positioned to serve and support the increasingly diverse needs of agriculture while maintaining safety 

and soundness requirements. These complexities will also impact the development of effective policies, 

guidance, and standards. Designing risk-based oversight strategies and systems that keep pace with the 

diverse lending landscape will prevent adverse impacts.

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 to foresee and 

respond to challenging scenarios. The impact of internal and external factors can lead to significant 

changes in conditions in short periods of time that must be managed efficiently. The Agency will be 

challenged to find the appropriate resource balance and maintain a thorough and robust oversight plan 

while preparing for unique, difficult, and unexpected oversight scenarios. The Office of Examination’s FY 

2024 National Oversight Plan includes five focus areas: cybersecurity threats and a changing operational 

environment; capital markets loan growth and increased risk in large, shared assets and commodity 

segments; long-term financial stewardship; stress analysis in a period of heightened volatility and 

uncertainty; and standards of conduct. 

Regulating 

and 

Supervising a 

Complex Farm 

Credit System
FCA Performance and Accountability Report — 2023 | 85

4 | P a g e 

CHALLENGE TWO: Innovation at FCA and the Farm Credit System

FCA faces significant regulatory and oversight challenges with the expansion of

technology and innovation in financial products and services (financial 

technology). These challenges will require FCA to innovate its business practices 

to ensure the effective and efficient development of policy, examination 

practices, and oversight of the System.

The field of financial technology encompasses a broad range of products and 

services, which can be offered by System institutions directly or in partnership 

with financial technology companies. Examples of types of financial technologies

include generative and predictive artificial intelligence, digital lending and credit, 

distributed ledger technology (including block chain), automated advisors, and

regulatory technology (Regtech).

The Agency is challenged in ensuring that policy and examination staff have the 

necessary technological knowledge and expertise to provide effective and efficient regulation and 

oversight of System institutions. From the policy development perspective, in order to develop policies 

that regulate the use of financial technologies, it is important that staff be knowledgeable about the 

technology, how the System utilizes the technology, and the extent to which those practices are safe, 

sound, and consistent with leading practices. From an examination perspective, understanding the various 

financial technologies each System institution uses is paramount to conducting effective examinations of 

System institutions. 

Introducing new and evolving technology could bring efficiencies to Agency processes through further 

automation; improving the prediction of risk, access and analysis of data; use of predictive analytical tools; 

and the facilitation of remote examinations. However, the identification of current skills and skill gaps, 

development of needed skills, and recruitment to fill gaps, all pose challenges to the Agency as innovative 

tools increase both internally and in the System. 

The Agency has begun adopting innovative practices that increase the efficiency and effectiveness of its 

regulatory and oversight processes. In FY 2020, the FCA Board of Directors approved the creation of the 

Office of Data Analytics and Economics (ODAE), which includes a staff of 4 data scientists. ODAE has taken 

steps to implement the innovative use of technology by drafting an analytical policy outlining the usage 

and guardrails for implementing machine learning techniques and artificial intelligence. Additionally, in 

FY 2023, the Agency created an innovation working group to focus on using innovation to increase the 

efficiencies and effectiveness of its internal processes and its role as a safety and soundness regulator of 

the System.

Innovation at 

FCA and the 

Farm Credit 

System
86 | FCA Performance and Accountability Report — 2023

5 | P a g e 

CHALLENGE THREE: Agility in Adapting to a Fast-changing Information Technology

World

FCA‘s information technology security program faces significant challenges in 

balancing a robust, strategic information security program with the need for 

timely, effective changes. Cybersecurity threats and vulnerabilities present 

significant challenges to information technology security. These challenges 

require a security program that is responsive, agile, and forward-looking. 

The Federal Information Security Modernization Act of 2014 requires an annual 

review to independently assess the effectiveness of FCA’s information security 

program and practices using the metrics identified by the Department of 

Homeland Security. The audit also assesses progress toward achieving 

outcomes that strengthen federal cybersecurity, including implementing 

government-wide priorities and best practices. For Fiscal Year 2023, FCA 

received an overall rating of effective, but challenges remain to keep the 

information security program at an effective level. Two domains were rated at 

below an effective level: information security continuous monitoring and supply chain risk management. 

FCA remains behind on the implementation of certain requirements in meeting continuous monitoring 

standards. These requirements involve costly resources to ensure successful implementation. 

Security events and breaches across the world highlight the prevalence of cybersecurity threats and risks

and the importance of robust detection and prevention processes. The Cybersecurity and Infrastructure 

Security Agency stated the following in an overview of cyber threats: “By preventing attacks or mitigating 

the spread of an attack as quickly as possible, cyber threat actors lose their power. Any cyber-attack, no 

matter how small, is a threat to our national security and must be identified, managed, and shut down.”

The Agency will continue to be challenged on meeting all the requirements of an information technology 

security program as more and more requirements are added in order to maintain robust, safe systems.

FCA is challenged to implement needed processes while maintaining the ability to pivot and work quickly 

in certain scenarios to adapt to changing threats. As a small agency with limited resources, there are 

difficulties in balancing the resources needed for a properly controlled and secure environment with 

having an agile workforce that can make changes to internal processes, policies and procedures, and 

technologies in a responsive, efficient manner. 

Overall, information technology and security requirements and guidance frequently change. It is 

imperative that FCA’s systems are able to adapt and change as needed. FCA has new efforts and resource 

allocations planned that could enhance its ability to improve the everchanging information security 

program. Forward looking, the Agency needs to consider the baseline skills and abilities of staff and 

contractor resources to understand gaps needed to advance the program into a more agile, responsive 

model. However, implementation in these areas is not easy and will continue to challenge the Agency.

Agility in 

Adapting to a 

Fast-changing 

Information 

Technology 

World 
FCA Performance and Accountability Report — 2023 | 87

6 | P a g e 

CHALLENGE FOUR: Recruiting and Retaining a Talented and Diverse Workforce

The Agency faces another significant management challenge in recruiting and 

retaining a talented and diverse workforce. An ever-present concern that is not 

unique to FCA, human capital management is imperative to fulfillment of the 

Agency’s mission. FCA’s success will depend greatly on its capacity to identify 

current and future staffing needs, taking into account the various disciplines 

and skillsets needed in its McLean, Virginia headquarters and field offices, and 

to meet those needs through recruitment and retention.

This task is complicated by a difficult labor market, where FCA must compete 

with private-sector employers and other Federal agencies for a limited pool of 

highly qualified workers, as well as inflationary pressures. Such circumstances 

will require nimble action on the Agency’s part to ensure that it can offer 

compensation and benefits that are suitably competitive to attract candidates 

for employment. In this regard, FCA is well-served by its authority to maintain 

comparability with other financial regulatory agencies. The Agency’s 

recruitment efforts will also benefit by educating potential employees on the importance of FCA’s mission 

to the nation’s vitality and security.

Training and development opportunities can also help ensure that FCA maintains a workforce that meets 

its needs. Programs such as job sharing, rotational details, intra-office assignments, and mentorships can 

promote career development as well as cultivate a sense that FCA is an employer rich with career 

opportunities.

Priorities across the government and in the private sector, diversity, equity, inclusion, and accessibility are

critical aspects to the Agency’s recruitment and retention efforts. The Agency must continuously assess 

and implement strategies, such as evaluating FCA’s recruiting data, to meet its strategic goals and ensure 

its employees feel valued and included. The Agency will need to identify and reduce barriers that may 

exclude certain groups from full participation, while continuing to foster appreciation in its workforce 

with programs that celebrate and promote diversity, equity, inclusion, and accessibility. 

Calendar year 2023 has seen FCA take a number of steps to grapple with this ever-present challenge. Of 

particular note, the FCA Board voted in January to reorganize the Agency’s Office of Equal Employment 

Opportunity and Inclusion, including establishing the head of the office as an office director position and 

creating a position in the office specifically focused on outreach and employment. These changes sought 

to elevate the office’s profile and reaffirm the Agency’s commitment to advancing diversity, equity, 

inclusion, and accessibility. In May, the Board also approved a workforce benefits package that included 

a leave buyback program, an expanded student loan repayment program, and an enhanced childcare 

subsidy program. These incentives sought to maintain comparability with other federal bank regulatory 

agencies and better enable the Agency to recruit and retain employees.

Recruiting and 

Retaining a 

Talented and 

Diverse 

Workforce
88 | FCA Performance and Accountability Report — 2023

November 14, 2023

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 the Farm Credit Administration on 

Oct. 12. We appreciate your office’s assessment and perspective of the management and performance 

challenges facing FCA. We remain committed to addressing these opportunities for continuous and strategic improvement as we deliver on our critical mission as regulator of the Farm Credit System, including 

Farmer Mac. In response to your analysis of the challenges facing FCA, I offer the following feedback.

Challenge 1: Regulating and supervising a complex Farm Credit System

As noted in the report, FCA acknowledges the growing complexity of the Farm Credit System (FCS or 

System). We continue to assess our capacities, resources, and skills to identify gaps and opportunities to 

strengthen our ability to regulate and supervise the FCS. 

In FY 2023, we acted on many fronts to address the uncertainties and vulnerabilities of the current 

environment and the ever-increasing sophistication of System institutions. For example, we introduced 

new analytical tools and updated guidance on institutional stress testing based on principles developed 

by the Basel Committee on Banking Supervision. Additionally, FCA established a new chief risk officer 

position to work with agency leaders, the risk committee, and key staff to identify, assess, and mitigate 

risks that could jeopardize the fulfillment of the agency’s mission. 

On the human capital front, to help us meet the challenge of examining more complex institutions, 

we developed and implemented a strategy to hire midcareer technical experts with skills in critical areas 

such as financial technology; capital markets; and credit, liquidity, and market risk. We also continue to 

invest in training and professional development for our early career staff. Our regulatory and examination staff attend courses sponsored by the Federal Financial Institutions Examination Council, which is 

the interagency body empowered to prescribe uniform principles, standards, and report forms for the 

federal examination of financial institutions.

We are examining System institutions’ implementation of our amended standards of conduct regulations, which became effective on Jan. 1 of this year. We provided System institutions with additional 

guidance on our expectations for their standards of conduct programs, and we’re addressing standards of 

conduct as a focus area in our FY 2024 national oversight plan. 

Lastly, over the course of this past year, which was my first as board chairman and CEO, I traveled 

across the country to meet with banks, associations, and external stakeholders. This gave me the opportunity to build relationships, learn about challenges, and better understand how the System is responding to the increasing complexity of the agricultural lending landscape. Collectively, our efforts will 

continue to strengthen FCA’s ability to respond to challenges proactively and appropriately.

Management’s Response to Challenges 

Identified by FCA’s Inspector General
FCA Performance and Accountability Report — 2023 | 89

Challenge 2: Innovation at FCA and the Farm Credit System

In February 2023, I announced four of my priorities as chairman and CEO: 

• Keeping FCA a Best Place to Work

• Diversity, Equity, and Inclusion

• Good Governance/Safety and Soundness

• Innovation

FCA recognizes that it is critical to understand the changing technological landscape across sectors, 

including agriculture and finance. We know that our understanding must anticipate the velocity of 

change and plan for the implications of those changes, including new and emerging products, services, 

and strategies. It is also clear that we must balance increased innovation with a sophisticated risk strategy that incorporates measures to protect against the operational and cybersecurity risks that innovation 

can introduce. 

We will continue to build on previous efforts to modernize and innovate so that we can build and 

maintain an organizational culture that embraces innovation within the bounds of safety and soundness. 

In support of these efforts, we have launched an FCA work group to identify opportunities for internal 

and external innovation. Over the coming year, staff will focus on developing agencywide guidance and 

initiatives on innovation, with emphasis on artificial intelligence and machine learning. In 2024, FCA will 

also implement the Paycheck8 system, modernizing our decades-old timekeeping and payroll system. 

Additionally, the board recently approved a final rule on cyber risk management designed to enhance System security while spurring innovation. The rule is principles-based rather than prescriptive, 

giving institutions both the guidelines and the flexibility they need to innovate. 

Challenge 3: Agility in adapting to a fast-changing information technology world

Over the past few years, our IT security program has repeatedly earned effective ratings from the IG 

during the annual Federal Information Security Modernization Act reviews. Recently, we improved and 

matured the program by increasing awareness, instilling better cyber hygiene practices, and implementing additional technical controls. 

However, we recognize that cybersecurity threats and technology-driven risks remain a perennial 

challenge facing the private and public sectors. Just as the agricultural and Farm Credit System landscapes are becoming more complex, the tools available to mitigate associated risks are becoming more 

sophisticated. Therefore, we continue to invest in resources to monitor and mitigate risk. We make decisions on the basis of risk so that we can deploy our resources effectively and efficiently. 

Over the past year, we implemented the mandated Cybersecurity and Infrastructure Security 

Agency’s Continuous Diagnostic and Mitigation Program, strengthened our multifactor authentication 

methods, and made several other security enhancements. Going forward, we will explore alternatives for 

enhancing our monitoring capabilities, maximizing our existing resources, and researching and investing in the necessary tools to facilitate timely changes in policies and procedures. 

We fully recognize the need to harness IT resources to further the mission of the agency. Strong collaboration and coordination between the Office of Information Technology and other FCA offices, particularly the Office of Data Analytics and Economics and the Office of Examination, will allow us to balance 

the need for updated technologies with protecting agency information. We must all work together to 

learn new tools and match technology solutions to our business needs. 

Challenge 4: Recruiting and retaining a talented and diverse workforce

Consistently ranked by the Partnership for Public Service as one of the best places to work in the 

federal government (and ranked number 1 in 2022 for diversity among small agencies), we have worked 

diligently to understand what our employees need and expect from the agency. As a result, we have been 
90 | FCA Performance and Accountability Report — 2023

able to prioritize those actions that are most meaningful — actions that foster an inclusive environment 

where our employees can thrive. 

For example, the board elevated our Office of Equal Employment Opportunity and Inclusion to a 

level equal to that of other offices and created a position specifically focused on outreach and employment. These changes reaffirmed the agency’s commitment to advancing diversity, equity, inclusion, and 

accessibility. 

In late FY 2022, the board tasked the agency’s chief human capital officer with launching a recruiting 

and retention work group. Over six months, the work group provided feedback and ideas for addressing 

workplace satisfaction concerns, including compensation ― one of the lowest-ranked areas for us on 

the Federal Employee Viewpoint Survey (FEVS). As a result of input from this work group, the FCA board 

approved a strategy to enhance pay satisfaction. The strategy included off-cycle pay increases, which 

resulted in a 7-percentage-point increase in pay satisfaction on the 2023 FEVS. The board also approved 

other initiatives, including a leave buyback program and expanded childcare and student loan repayment 

programs. 

We continued our investment in professional development by making an e-learning platform accessible to all FCA employees. During the first nine months of agencywide access, our employees accessed 

content on the platform nearly 2,200 times, and the average number of hours that employees engaged in 

discretionary training increased from 22 in 2022 to 180 in 2023. 

We also focused on staying competitive in our recruiting, and increasing the diversity of our applicant pool. We recruited from more than 30 colleges and universities, including minority-serving 

institutions such as historically Black colleges and universities, Hispanic-serving institutions, and Native 

American-serving nontribal institutions. 

We further support diversity by sponsoring employee-led special emphasis programs, where diverse 

perspectives and backgrounds are celebrated and encouraged through regular meetings and special 

events. Examples of initiatives to foster a culture of inclusion and respect included sponsoring a mentoring series, holding educational special observances, ensuring the agency has accessible bathrooms, and 

offering more discretionary trainings. 

These actions contributed to a 4-percentage-point increase in accessibility and a 2-percentage-point 

increase in inclusion on the 2023 FEVS. We will continue to leverage FEVS data and employee feedback to 

align our strategic workforce initiatives with the needs and expectations of our employees.

Concluding thoughts

FCA does indeed face many challenges, but we have developed, and continue to develop, carefully 

thought-out strategies to address those challenges. We’re excited about the future, and we look forward to 

strengthening our performance as regulator of the Farm Credit System.

Again, thank you for your valuable insight on the challenges we’re facing as an agency. I am proud 

of the work the FCA team continues to do and the leadership across all offices to ensure we continue to 

meet our mission. 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 — 2023 | 91

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 2023 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
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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