~ IG 

Fann Credit Administration 

Oflicc of Inspector Gcncr,1I 

Farm Credit Administration 

Office of Inspector General 

Semiannual Report to Congress 

October 1, 2021 – March 31, 2022 
 

Credit Administration 

Office of Inspector General 

FARM CREDIT ADMINISTRATION 

OFFICE OF INSPECTOR GENERAL 

SEMIANNUAL REPORT TO CONGRESS 

OCTOBER 1, 2021 – MARCH 31, 2022 
MESSAGE FROM THE INSPECTOR 

GENERAL 

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

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

Inspector General (OIG) for October 1, 2021, through March 31, 2022. 

The OIG had another productive reporting period that saw staff return to our McLean, 

Virginia offices on a regular basis for the first time since March 2020, bringing renewed 

synergies and camaraderie to the workplace. 

These past six months, we completed an inspection of FCA’s property management 

program—making several recommendations to promote accuracy in how the Agency

manages the property it uses to carry out its mission—and an annual review of FCA’s 

compliance with improper payments reporting requirements. We also oversaw 

contracted audits of the Agency’s financial statements and its compliance with the 

Federal Information Security Modernization Act. Further, we performed a peer review 

of another OIG’s inspection and evaluation (I&E) function. 

In addition to our impactful audit, inspection, and evaluation work, our office addressed 

all complaints received through the OIG hotline in a timely and efficient manner and 

delivered its annual statement on the top management challenges facing the Agency.

I am also happy to note that we published a report on our surveys of Farm Credit System 

institutions. This was our first report since pausing the survey process—which seeks 

institutions’ feedback on the FCA examination process—at the onset of the COVID-19 

pandemic. Finally, I provided a year-in-review presentation of the activities of our office

at the January public meeting of the FCA Board. 

This reporting period once again saw invaluable contributions by members of our office

to the committees and workgroups of the Council of the Inspectors General on Integrity 

and Efficiency (CIGIE). I am particularly proud to report that Assistant Inspector General 

for Audits, Inspections, and Evaluations Sonya Cerne and Senior Auditor Christopher 

Coccaro received a CIGIE Award as part of a group responsible for the revision of the 

CIGIE Quality Standards for Inspection and Evaluation. I served during these six months 

as Chair of the CIGIE I&E Committee, as a member of the CIGIE Legislation and Budget 

Committees and Executive Council, as a CIGIE representative to the Administrative 

Conference of the United States Alternative Dispute Resolution Advisory Group, and as

a member of the CIGIE Inspector General candidate panel. 

Lastly, FCA experienced retirements in multiple senior-level positions over these last six 

months, including in the positions of Chief Examiner, Chief Financial Officer, and 

Secretary to the Board. With new individuals filling these and other vital roles, my office 

looks forward to continuing the cooperative and respectful relationship that the OIG

enjoys with the Agency. 

Wendy R. Laguarda 

Inspector General 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 i 
ACRONYMS AND 

ABBREVIATIONS 

AIGAIE Assistant Inspector General for Audits, Inspections, and 

Evaluations 

CIGIE Council of the Inspectors General on Integrity and Efficiency 

CPB Corporation for Public Broadcasting 

ERM Enterprise Risk Management 

Farmer Mac Federal Agricultural Mortgage Corporation 

FCA (or Agency) Farm Credit Administration 

FISMA Federal Information Security Modernization Act of 2014 

FY Fiscal Year 

GAO U.S. Government Accountability Office 

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

I&E Inspection and Evaluation 

IG Inspector General 

IG Act Inspector General Act of 1978, as amended 

IT Information Technology 

OIG Office of Inspector General 

OMB U.S. Office of Management and Budget 

PIIA Payment Integrity Information Act of 2019 

Pub. L. Public Law 

System Farm Credit System 

U.S. United States 

U.S.C. United States Code 

Williams Adley Williams Adley & Company-DC LLP 

ii Farm Credit Administration | Office of Inspector General 
TABLE OF 

CONTENTS 

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

Acronyms and Abbreviations ................................................................................................................ ii 

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

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

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

Summaries of Reports Issued........................................................................................................... 4 

Recommendations Made During the Reporting Period ........................................................ 7 

In Progress ............................................................................................................................................... 8 

Investigations ............................................................................................................................................ 10 

Complaint Activity............................................................................................................................... 10 

Summaries of Investigations ........................................................................................................... 10 

Other Reports and Reviews ................................................................................................................. 11 

Outreach, Collaboration, and Other Initiatives............................................................................. 13 

FCA Employees .................................................................................................................................... 13 

Congress ................................................................................................................................................. 13 

IG Community ...................................................................................................................................... 13 

Reviews of Proposed Legislation and Regulations ................................................................. 14 

Internal Operations ............................................................................................................................ 14 

Appendix I: Peer Reviews ...................................................................................................................... 15 

Appendix II: Reports Issued ................................................................................................................. 17 

Appendix III: Reports with Questioned Costs ............................................................................... 18 

Appendix IV: Reports with Funds For Better Use......................................................................... 19 

Appendix V: Open Recommendations ............................................................................................ 20 

Index of Reporting Requirements ..................................................................................................... 21 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 iii 
BACKGROUND 

The Farm Credit System 

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

borrower-owned cooperative financial institutions and service organizations. A 

government-sponsored enterprise, the System is designed to better the income and

well-being of farmers, ranchers, and rural America by providing a safe and reliable

source of credit and related financial services. 

As of April 1, 2022, the System consisted of three farm credit banks, one agricultural 

credit bank, one federal land credit association and 64 agricultural credit associations

that primarily make loans to agriculture in all 50 states and Puerto Rico, as well as six 

service corporations that provide administrative, technology-related, and other support 

services to certain System entities and eligible borrowers. The System raises funds by 

selling securities in the national and international money markets through the Federal 

Farm Credit Banks Funding Corporation. 

The System also includes the Federal Agricultural Mortgage Corporation (Farmer Mac),

a stockholder-owned, federally chartered instrumentality. Created in 1988, Farmer Mac

provides a secondary market for agricultural real estate mortgage loans, rural housing 

loans, and rural utility cooperative loans. Farmer Mac is publicly traded and issues its 

own debt securities. 

The Farm Credit Administration 

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

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

agriculture and rural America. Authorized by the Farm Credit Act of 1971, as amended,1 

FCA ensures the safety and soundness of System institutions by issuing policies and 

regulations, and by regularly examining System institutions to assess compliance with

applicable laws and regulations. FCA has approximately 300 employees distributed 

across five offices nationwide. 

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

President, with the advice and consent of the Senate. The Chair of the Board—who is 

designated by the President and serves in that role until the end of his or her term—

also serves as the Agency’s Chief Executive Officer. During the reporting period, the

Board had two members, Chairman Glen R. Smith and Board Member Jeffery S. Hall. 

The Office of Inspector General 

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

task of providing independent and objective oversight of FCA programs and 

operations. It carries out this responsibility as authorized by and in accordance with the

Inspector General Act of 1978, as amended (IG Act),2

 by conducting and supervising 

audits, inspections, evaluations, and investigations; promoting economy and efficiency; 

1 12 U.S.C. § 2001 et seq. 

2 5 U.S.C. app. 

1 Farm Credit Administration | Office of Inspector General 
preventing and detecting fraud, waste, and abuse; and keeping the FCA Board and 

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

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

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

general supervision of the FCA Board, neither the Board nor any other Agency official 

may prevent or prohibit the IG from carrying out an oversight activity that the IG

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

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

status. This independence is necessary to ensure that OIG products meet the highest

standards of objectivity and credibility. 

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

Reporting to the IG are the Assistant Inspector General for Audits, Inspections, and 

Evaluations (AIGAIE), the Investigator, and the Counsel to the IG. The AIGAIE supervises

the audit staff and oversees the audit, inspection, and evaluation functions. 

The Council of the Inspectors General on Integrity and Efficiency 

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

and Efficiency (CIGIE). Composed of the federal Inspectors General and certain other

federal officials, CIGIE was established to address cross-agency issues of integrity,

economy, and effectiveness and to improve the professionalism and effectiveness of 

OIG personnel. OIG staff regularly participate on CIGIE committees and initiatives, as 

discussed in this report. 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 2 
STRATEGIC 

PLAN 

In September 2019, the OIG adopted a five-year strategic plan for fiscal years (FYs) 2020 

to 2024. The plan details the vision, mission, values, goals, and objectives of the OIG in

carrying out its responsibilities under the IG Act and establishes certain measures

against which the OIG benchmarks its performance. 

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

Vision 

Harvesting Change 

Mission 

To provide independent oversight to promote economy, efficiency, and effectiveness,

and prevent and detect fraud, waste, and abuse in Farm Credit Administration programs

and operations 

Values 

Objectivity, Integrity, Relevance, and Respect 

Goals 

1) Promote Economy and Efficiency 

2) Prevent and Detect Fraud, Waste, and Abuse 

3) Strengthen Internal and External Relationships 

3 Farm Credit Administration | Office of Inspector General 
AUDITS, INSPECTIONS

, AND 

EVALUATIONS 

The OIG regularly completes audits, inspections, and evaluations of FCA programs and 

operations. In so doing, OIG personnel seek to provide timely, credible, and relevant

information to Agency leadership, Congress, other stakeholders, and the general public.

FCA OIG audits are performed in accordance with the Government Auditing Standards 

issued by the U.S. Government Accountability Office (GAO), while inspections and 

evaluations adhere to the CIGIE Quality Standards for Inspection and Evaluation. 

In planning its audits, inspections, and evaluations, the OIG employs a risk-based

approach that accounts for prior oversight work, the control environment, input from 

the FCA Board and senior management, and statutory requirements. For more 

information, and to learn about future OIG work, please see the audit, inspection, and 

evaluation plan for FYs 2022-2023. 

Reports issued may be found on the OIG website within three business days of issuance 

to the FCA Board. To receive a notification when a new report is published, please 

subscribe to the OIG mailing list. Reports are also posted on Oversight.gov, a 

consolidated repository for the oversight work of federal inspectors general. 

Oversight.gov allows users to sort, search, and filter the site’s database to find reports

of interest. Users can receive notifications when new reports are added to Oversight.gov

by following CIGIE’s Twitter account, @OversightGov. 

Summaries of Reports Issued 

The OIG issued four reports and made twelve recommendations for corrective action 

during the reporting period. The reports are summarized below. 

The Farm Credit Administration’s Compliance with the 

Payment Integrity Information Act of 2019 

for Fiscal Year 2021 

I-22-02 

Enacted in March 2020, the Payment Integrity Information Act (PIIA) aims to improve 

governmentwide efforts to identify and reduce improper payments, setting forth 

various reporting requirements for federal agencies. PIIA requires OIGs to determine 

each fiscal year whether their respective agencies complied with PIIA requirements, in 

accordance with guidance issued by the U.S. Office of Management and Budget (OMB) 

and CIGIE. 

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

Agency for FY 2021, and based on the limited review performed, that the Agency’s 

efforts to prevent and reduce improper payments appeared to be reasonable. As 

required, FCA published on the Agency’s website a Performance and Accountability 

Report, which contained the Agency’s FY 2021 financial statement and payment 

integrity information. FCA also completed the required improper payment risk 

assessments and analyzed programs for susceptibility to improper payments, 

determining all programs and activities assessed to be low risk and not susceptible to

significant improper payments. Other PIIA reporting requirements were not applicable

to the Agency in FY 2021. 

The OIG issued the inspection report on March 23, 2022. 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 4 
The Farm Credit Administration’s Property Management Program

I-21-03 

FCA acquires, maintains, and disposes of various types of property to achieve its 

mission. Proper management of this property is necessary to ensure that employees

have the tools they need to carry out their work, protect the Agency’s investment in the 

property, and safeguard assets that process or store nonpublic information. 

The objective of this inspection was to determine if FCA has implemented an adequate 

process to ensure accuracy in its property management system and whether the Agency 

adheres to its internal policies and procedures. To address this objective, the OIG

reviewed FCA’s property inventory and tested information in the Agency’s property 

management system. The OIG analyzed property assignments associated with recently 

hired or separated employees, disposal documentation for donated laptops; and FCA

expenses that the Office of the Chief Financial Officer categorized as noncapitalized 

equipment. 

The inspection found that FCA had implemented a process to account for property and 

keep employees accountable and responsible for assigned property. The inspection 

also found that the Agency had a disposal process for property that was no longer 

needed and had assigned responsibility to various FCA personnel with roles in the 

property management process. 

However, the OIG identified several opportunities to improve the property 

management process. The inspection noted information missing from, and 

inconsistencies in, the Agency’s property management tracking system. The OIG also 

found that policies and procedures, accesses, and controls over the program needed 

to be reviewed, updated, and further defined. 

The OIG made nine recommendations to enhance the property management program

and ensure accuracy in the property management process. Management agreed with 

six of the recommendations. Although the Agency only partially agreed with the

remaining three recommendations, the OIG determined that the management actions 

planned or completed addressed the related weaknesses identified in the report. 

The OIG issued the inspection report on December 7, 2021. 

The Farm Credit Administration’s Financial Statements 

Fiscal Year 2021 

A-21-FS 

Under the Accountability of Tax Dollars Act of 2002,3

 FCA is required each year to

submit audited financial statements to Congress and OMB. For FY 2021, the OIG 

engaged the independent public accounting firm of Harper, Rains, Knight & Company, 

P.A. (HRK) to audit FCA’s financial statements. The OIG monitored the work of HRK for

compliance with the Government Auditing Standards. 

HRK concluded the audit in November 2021, issuing an unmodified opinion signifying 

that the financial statements presented fairly, in all material respects, FCA’s financial 

3 Pub. L. 107-289 (Nov. 7, 2002). 

5 Farm Credit Administration | Office of Inspector General 
position as of September 30, 2021 and 2020, and its net cost of operations, changes in 

net position, and budgetary resources for the fiscal years then ended, in accordance

with generally accepted accounting principles. 

HRK considered FCA’s internal control over financial reporting as a basis for designing

audit procedures for the purpose of expressing an opinion on the financial statements. 

The auditors did not express an opinion on the effectiveness of those internal controls;

however, they did not identify any deficiencies that HRK considered to be material 

weaknesses. 

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

and regulations that would have a direct and material effect on the financial statements.

While HRK did not express an opinion on compliance with those provisions, they did 

not identify any instances of noncompliance required to be reported under the 

Government Auditing Standards or relevant OMB guidance. 

The OIG’s monitoring and review of HRK disclosed no instances where HRK did not 

comply, in all material respects, with the Government Auditing Standards. 

The OIG issued the audit report on November 10, 2021. HRK presented the report at 

the January 13, 2022, meeting of the FCA Board. 

The Farm Credit Administration’s Compliance with the 

Federal Information Security Modernization Act 

for Fiscal Year 2021 

A-21-02 

Information technology (IT) facilitates and impacts all aspects of FCA operations. As 

such, securing Agency IT systems against cybersecurity threats and efficiently

addressing IT requirements are vital to the fulfillment of FCA’s mission. Under the 

Federal Information Security Modernization Act of 2014 (FISMA),4

 the OIG annually 

assesses FCA’s progress in meeting this ever-evolving challenge. FISMA requires OIGs

to independently evaluate their respective agency’s information security program and 

practices. The OIG contracted with the independent public accounting firm of Williams

Adley & Company-DC LLP (Williams Adley) to perform this review for FY 2021. The OIG 

monitored the work of Williams Adley for compliance with the Government Auditing 

Standards. 

In accordance with guidance developed by OMB, the U.S. Department of Homeland 

Security, and CIGIE, Williams Adley assessed FCA’s performance with respect to 66

metrics across nine domains: risk management, supply chain risk management, 

configuration management, identity and access management, data protection and 

privacy, security training, information security continuous monitoring, incident 

response, and contingency planning. For each domain, FCA’s effectiveness was ranked 

according to a maturity model ranging from “ad-hoc” (level 1) to “optimized” (level 5).

According to the FY 2021 FISMA metrics, a “managed and measurable” (level 4) 

4 44 U.S.C. § 3555(b)(1). 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 6 
information security program is considered to be operating at an effective level of

security. 

Based on these metrics, Williams Adley concluded that FCA had implemented an 

effective security program in FY 2021. The Agency continued to improve its information 

security program and made progress in implementing the majority of

recommendations made as part of previous FISMA evaluations. Williams Adley

determined that the Agency was “managed and measurable” (level 4) for six domains. 

The incident response domain was “consistently implemented” (level 3), while Williams 

Adley ranked the contingency planning and supply chain risk management domains as 

“defined” (level 2) and “ad-hoc” (level 1), respectively. 

Williams Adley made three recommendations related to supply chain risk management,

configuration management, and incident response, respectively. FCA agreed with all of 

the recommendations. 

The OIG’s monitoring and review of Williams Adley disclosed no instances where 

Williams Adley did not comply, in all material respects, with the Government Auditing 

Standards. 

The OIG issued the audit report on October 27, 2021. Williams Adley presented the 

report at the January 13, 2022, meeting of the FCA Board. 

Recommendations Made During the Reporting Period 

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

period. 

Table 1 

Report Recommendation 

The Farm Credit 

Administration’s Property

Management Program 

1 The Office of Inspector General recommends the

Office of Agency Services update Policies and 

Procedures Manual 851 to clarify the applicability of 

legal references and steps to be taken if employees

are nonresponsive to property requirements. 

2 The Office of Inspector General recommends the

Office of Agency Services finalize the internal policies

and procedures for the property management 

program. 

3 The Office of Inspector General recommends the

Office of Agency Services resolve property statuses of 

separated employees identified in the report. 

4 The Office of Inspector General recommends the 

Office of Agency Services document controls to

ensure new employees are assigned their property. 

5 The Office of Inspector General recommends the

Office of Agency Services resolve incorrect 

assignments and errors identified in the report. 

7 Farm Credit Administration | Office of Inspector General 
Report Recommendation 

The Farm Credit 

Administration’s Property

Management Program 

(continued) 

6 The Office of Inspector General recommends the

Office of Agency Services implement additional

controls on the inventory process for, and property

assigned to, the Property Management Officer. 

7 The Office of Inspector General recommends the

Office of Agency Services designate someone other

than the Property Management Officer to inventory

and reconcile property assigned to the Property

Management Officer. 

8 The Office of Inspector General recommends the

Office of Agency Services issue guidance to purchase

card holders on property thresholds and 

requirements. 

9 The Office of Inspector General recommends the

Office of Agency Services review the access listing to 

the Property Management Tracking System for

inaccuracies and consider reviewing the number and

level of accesses of all users to the system. 

The Farm Credit 1 

Administration’s 

Compliance with the 2 

Federal Information 

Security Modernization Act 3 

for Fiscal Year 2021 

Not publicly released. 

Not publicly released. 

Not publicly released. 

In Progress 

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

reporting period. 

The Farm Credit Administration’s 

Enterprise Risk Management and Internal Control Program 

In carrying out its mission, FCA must manage various risks. In July 2016, OMB updated 

guidance to require agencies to implement an Enterprise Risk Management (ERM) 

capability coordinated with strategic planning and internal control processes. ERM is 

an effective agency-wide approach to addressing the full spectrum of an organization’s 

risks by understanding the combined impact of risks as an interrelated portfolio, rather 

than addressing risks only within silos. A key factor for ensuring accountability, internal

control is a process that provides reasonable assurance that the objectives of an entity 

are achieved. The objective of this audit is to determine whether FCA has established 

an adequate ERM and internal control program. 

The Farm Credit Administration’s External Communication Process 

FCA communicates information to the public in several ways, including its website and

social media. External communication is valuable to the Agency and the public, but 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 8 
processes need to be in place to ensure information is accurately disseminated and

controlled. The objective of this inspection is to determine whether FCA has an effective 

and efficient external communication process. 

The Farm Credit Administration’s Compliance with 

the Federal Information Security Modernization Act 

for Fiscal Year 2022 

As discussed above, FISMA requires that the OIG annually evaluate FCA’s information

security program and practices to determine their effectiveness. The OIG has contracted 

with independent public accounting firm Williams Adley to conduct the FISMA audit 

for FY 2022. In a change from prior reviews, the FY 2022 audit will assess a core group 

of 20 OMB-selected metrics, representing a combination of administration priorities 

and other highly valuable controls. The OIG is monitoring the work of the firm. 

The Farm Credit Administration’s Financial Statements 

Fiscal Year 2022 

As discussed above, FCA is required annually to submit audited financial statements to 

Congress and OMB. Those financial statements must be audited by the IG or an 

independent external auditor, as determined by the IG. The OIG has contracted with 

independent public accounting firm HRK to perform this audit for FY 2022. The OIG is 

monitoring the work of the firm. 

9 Farm Credit Administration | Office of Inspector General 
INVESTIGATIONS 

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

operations that the IG determines to be necessary or appropriate. The range of matters 

falling within the OIG’s investigative purview is expansive, encompassing potential

violations of law, rules, or regulations; mismanagement; abuses of authority; and more. 

Investigative activities may be initiated upon allegations or referrals received from a 

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

congressional committees, other agencies, System institutions, or members of the 

public. The OIG may also investigate potential fraud, waste, abuse, and mismanagement 

identified through OIG audits, inspections, and evaluations. 

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

timely, clear, and credible, and to guard the identities of those who provide information

to the OIG. All investigations are carried out in accordance with the CIGIE Quality 

Standards for Investigations. 

Table 2 summarizes major investigative activity during the reporting period. 

Table 2 

Metric Number 

Investigative reports issued5

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

prosecution 

Persons referred to state and local prosecuting authorities for criminal 

prosecution 

Indictments and criminal informations that resulted from any prior 

referral to prosecuting authorities 

 0

0 

0 

0 

Complaint Activity 

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

mismanagement to the OIG in-person or via telephone, email, mail, or fax. Table 3 

shows the disposition of complaints received during the reporting period or carried

over from a previous reporting period. 

Total 22 

Table 3 

Action Taken Number 

Investigation opened 0 

Closed after review with no further specific investigative action 16 

Referred to FCA office of program manager 5 

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

Under review at the end of the reporting period 1 

Summaries of Investigations 

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

memoranda for investigations are available on the OIG’s online reports page. 

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

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 10 
OTHER 

REPORTS AND 

REVIEWS 

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

evaluation, or investigation. These projects are typically undertaken in accordance with 

a statutory requirement, for quality assurance purposes, or to otherwise provide

comprehensive oversight of FCA programs and operations. Below are summaries of 

such reviews that were completed during the reporting period. 

Management Challenges 

As required by the Reports Consolidation Act of 2002,6

 the OIG annually prepares a 

statement summarizing what the IG considers to be the most serious management and 

performance challenges facing FCA. The statement also assesses the Agency’s progress 

in meeting those challenges and highlights relevant OIG oversight work. 

For FY 2021, the OIG highlighted five challenges facing the Agency, all of which were

previously identified in the OIG’s FY 2020 report: 

Examination and Supervision Program: Identifying and addressing risks in the

System through effective examination and supervision to ensure it remains safe

and sound. 

Information Technology: Leveraging investments in IT while maintaining a 

secure environment and mobile workforce. 

Data Quality and Analysis: Obtaining consistent and quality data vital to FCA's 

mission. 

Human Capital: Maintaining a safe, well-trained, sustainable workforce while 

facing challenges in retirement eligibilities, workforce retention, and diversity. 

Secondary Market Oversight: Providing effective and impartial oversight of

Farmer Mac through FCA’s Office of Secondary Market Oversight. 

Within the context of each of these challenges, the report discusses the relevance and

impact of the COVID-19 pandemic. 

The report was issued to the FCA Board on October 13, 2021. FCA management’s 

response can be found in the Agency’s Performance and Accountability Report for FY 

2021. 

FY 2021 Charge Card Letter 

Pursuant to the Government Charge Card Abuse Prevention Act of 20127

 and 

implementing OMB guidance, the OIG conducts periodic risk assessments of FCA 

charge card programs to analyze the risk of illegal, improper, or erroneous purchases.

The OIG annually reports to OMB on the Agency’s progress in implementing charge 

card-related recommendations. 

On January 4, 2022, the OIG issued a letter to OMB reporting that there were no charge 

card-related recommendations initiated, closed, or open during FY 2021. 

6 31 U.S.C. § 3516(d). 

7 41 U.S.C. § 1909(d). 

11 Farm Credit Administration | Office of Inspector General 
Survey of Farm Credit System Institutions 

Regarding the Agency’s Examination Function 

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

consistency of FCA’s examination function. Survey questions seek the institution’s views

on several matters, ranging from the appropriateness of the examination’s scope and

the examiners’ conduct to the helpfulness of any recommendations or required actions. 

The survey employs a numerical rating system and allows for institutions to provide

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

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

Chief Examiner. 

While the OIG generally reports survey results on a semiannual basis, the OIG paused

its survey activities in April 2020 due to the onset of the COVID-19 pandemic. The 

survey resumed in May 2021, incorporating two new questions to address the efficiency

and effectiveness of communications during remote examinations. 

The OIG issued a survey report on January 21, 2022, detailing responses from System

institutions examined during the last three quarters of FY 2021. 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 12 
OUTREACH, COLLABORATION

, AND 

OTHER INITIATIVES 

FCA Employees 

The cooperation of FCA employees is essential to all aspects of OIG oversight. 

Accordingly, the OIG has several ongoing initiatives geared toward educating FCA

employees on the OIG’s mission and authorities. These include a quarterly intra-agency 

newsletter, the dIG, which generally seeks to demystify the office’s role, authorities, and 

responsibilities, and provides recent examples of OIG oversight products 

governmentwide. The OIG also participates in orientation trainings for new FCA 

employees and distributes posters to promote awareness of the OIG hotline. 

This reporting period, IG Laguarda provided a year-in-review presentation at the 

January 2022 public meeting of the FCA Board. The presentation described OIG 

activities completed during calendar year 2021, noted the importance of FCA 

employees’ cooperation to OIG oversight, and highlighted certain projects described in

the office’s audit, inspection, and evaluation plan for FYs 2022-2023. 

Congress 

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

informed about problems and deficiencies relating to FCA programs and operations, 

the OIG endeavors to respond expeditiously to all congressional requests and to 

periodically brief oversight committees on recent OIG activity. During the reporting

period, the IG provided briefings on OIG activities to majority and minority staff from

both the Senate Committee on Agriculture, Nutrition, and Forestry and the House 

Committee on Agriculture. 

IG Community 

The OIG is an active member of the IG community, with staff lending their efforts and 

expertise to the work of various CIGIE committees and initiatives. 

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

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

Committee maintains professional standards for inspections and evaluations, heads the

development of protocols for reviewing cross-agency management issues, and 

oversees the I&E peer review process. Under the purview of this committee, the AIGAIE 

leads the I&E Roundtable. 

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

of the CIGIE IG candidate panel. The Legislation Committee fosters relationships with

Congress, represents the IG community’s interests on legislative initiatives, and keeps

OIGs apprised of pertinent legislative developments. The Budget Committee provides

leadership in the development of CIGIE’s annual appropriation requests and 

coordinates with OMB and relevant Congressional committees on funding CIGIE 

activities. The IG candidate panel reviews potential IG candidates and makes

recommendations to the appropriate appointing authorities—the President or agency 

head. 

In addition to their involvement in the above-listed committees, OIG staff participated

in a variety of CIGIE committees and working groups, including the Audit Committee, 

13 Farm Credit Administration | Office of Inspector General 
the Diversity, Equity, Inclusion, and Accessibility Work Group, the Small and Unique IG 

working group, the Council of Counsels to the Inspectors General, the Assistant 

Inspectors General for Investigations Subcommittee, and the Whistleblower Protection 

Coordinators working group. 

Reviews of Proposed Legislation and Regulations 

The OIG reviews proposed and existing legislation, regulations, and directives that 

affect Agency programs and operations or the mission and functions of the OIG. When 

appropriate, the OIG makes recommendations regarding the impact of such legislation, 

regulations, and directives on economy or efficiency, the prevention and detection of 

fraud, waste, and abuse, or the integrity and independence of the OIG. 

During the reporting period, the OIG reviewed several bills and proposed regulations

related to FCA or IG authorities. The OIG provided comments on proposed legislation 

through the CIGIE Legislation Committee. The OIG also reviewed and provided

comments on internal FCA directives relating to OIG functions. 

Internal Operations 

The OIG is in continuous pursuit of ways to improve its own operations. This reporting 

period, the office revised its templates for audit, inspection, and evaluation reports to 

further improve their clarity and readability. 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 14 
APPENDIX I: 

PEER 

REVIEWS 

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

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

provided below. 

Reports of external peer reviews of FCA OIG operations may be found on the OIG 

website. Reports of peer reviews conducted by the FCA OIG may be located on the 

websites of the reviewed OIGs. 

Audit 

The GAO Government Auditing Standards require any organization conducting audits 

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

every three years. These peer reviews may conclude in a rating of pass, pass with 

deficiencies, or fail. A rating of pass signifies that the audit organization’s system of 

quality control has been suitably designed and complied with to provide the

organization with reasonable assurance of performing and reporting in conformity with 

applicable professional standards and legal and regulatory requirements in all material 

respects. 

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

period. The most recent peer review was completed by the National Endowment for 

the Humanities OIG on September 13, 2019. The FCA OIG received a rating of pass and 

the final report made no recommendations for corrective action. 

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

Inspection and Evaluation 

Each OIG performing inspections or evaluations in accordance with the CIGIE Quality 

Standards for Inspection and Evaluation is required to undergo an external peer review 

every three years. I&E peer review reports do not include an overall rating (such as pass 

or fail) but state whether the reviewed OIG’s policies and procedures were generally 

consistent with CIGIE standards and whether the OIG’s work generally complied with

those standards. 

The FCA OIG’s I&E function was not subject to peer review during the reporting period. 

The most recent peer review was completed by a team composed of personnel from

the U.S. Equal Employment Opportunity Commission and U.S. Department of the 

Treasury OIGs on December 17, 2019. The final report concluded that FCA OIG 

inspection and evaluation policies met all standards addressed and found that the OIG 

reports reviewed adhered to standards and the OIG’s internal policies and procedures. 

The report made no recommendations for corrective action. 

On January 28, 2022, the FCA OIG concluded a peer review of the I&E organization of 

the Corporation for Public Broadcasting (CPB) OIG. The final report determined that 

CPB OIG’s policies and procedures were generally consistent with the seven standards 

addressed in the external peer review and that the reports reviewed generally complied

with those standards. 

15 Farm Credit Administration | Office of Inspector General 
 

Investigation 

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

Offices of Inspector General establish an independent external evaluation process for 

investigative operations. The objective of an investigative peer review is to determine 

whether internal control systems are in place and operating effectively to provide 

reasonable assurance that an OIG’s investigative operations comply with CIGIE’s Quality 

Standards for Investigations. Reviewed OIGs are assessed a rating of compliant or noncompliant. While the guidelines do not mandate that OIGs without statutory law

enforcement authority—like the FCA OIG—undergo investigative peer reviews, they

encourage voluntary participation. 

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

The OIG’s investigation function is scheduled to be peer reviewed beginning in summer

2023. The most recent peer review of the FCA OIG’s investigation program was

performed by the Securities and Exchange Commission OIG for the one-year period

ending September 30, 2007. 

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

period. 

Outstanding Recommendations 

There are no outstanding recommendations from any peer review conducted by

another OIG that have not been fully implemented. 

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

remain outstanding or that have not been fully implemented. 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 16 
APPENDIX II: 

REPORTS ISSUED 

Table 4 lists all audit, inspection, and evaluation reports issued during the reporting 

period. For each report, Table 4 lists the dollar value of questioned costs (including the 

dollar value of unsupported costs) and the dollar value of recommendations that funds 

be put to better use. 

Table 4 

Report Title 

Dollar Value of 

 Questioned Costs 

Dollar Value of 

Recommendations 

that Funds be Put 

to Better Use Total Unsupported 

The Farm Credit 

Administration’s 

Compliance with the 

Payment Integrity 

Information Act of 2019 for 

Fiscal Year 2021 

The Farm Credit 

Administration’s Property

Management Program 

The Farm Credit 

Administration’s Financial 

Statements 

Fiscal Year 2021 

The Farm Credit 

Administration’s 

Compliance with the 

Federal Information 

Security Modernization Act 

for Fiscal Year 2021 

$0 

$0 

$0 

$0 

$0 

$0 

$0 

$0 

$0

$0 

$0

$0 

Total $0 $0 $0 

17 Farm Credit Administration | Office of Inspector General 
APPENDIX III: 

REPORTS WITH 

QUESTIONED 

COSTS 

Table 5 shows the number of audit, inspection, and evaluation reports issued with

questioned costs, and the total dollar value of questioned costs associated with those 

reports. 

Table 5 

Requirement # Questioned 

Costs 

Unsupported 

Costs 

(A) Reports for which no management 

decision had been made by the 

commencement of the reporting period 

(B) Reports issued during the reporting 

period 

Subtotal (A+B) 

(C) Reports for which a management 

decision was made during the reporting 

period, including— 

(i) the dollar value of recommendations 

that were agreed to by management 

(ii) the dollar value of recommendations 

that were not agreed to by 

management 

(D) Reports for which no management 

decision has been made by the end of 

the reporting period 

0 

0 

0 

0 

0 

$0 

$0 

$0 

$0 

$0 

$0 

$0 

$0

$0 

$0 

$0 

$0

$0 

$0

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 18 
APPENDIX IV: 

REPORTS WITH 

FUNDS 

FOR 

BETTER 

USE 

Table 6 shows the number of audit, inspection, and evaluation reports issued with

recommendations that funds be put to better use. 

Table 6 

Requirement # Unsupported 

Costs 

(A) Reports for which no management decision had 

been made by the commencement of the reporting 

period 

(B) Reports issued during the reporting period 

Subtotal (A+B) 

(C) Reports for which a management decision was 

made during the reporting period, including— 

(i) the dollar value of recommendations that were 

agreed to by management 

(ii) the dollar value of recommendations that were not 

agreed to by management 

(D) Reports for which no management decision has 

been made by the end of the reporting period 

0 

0 

0 

0 

0 

$0

$0 

$0 

$0 

$0 

$0 

$0

19 Farm Credit Administration | Office of Inspector General 
APPENDIX V: 

OPEN 

RECOMMENDATIONS 

Table 7 includes summary information regarding audit, inspection, and evaluation 

reports issued before October 1, 2021, for which there are outstanding unimplemented

recommendations, including the aggregate potential cost savings of those 

recommendations. There were no reports issued before the commencement of the

reporting period for which no management decision had been made by the end of the

reporting period or for which no comment was returned within 60 days. 

Table 7 

Outstanding Aggregate 

Report Unimplemented Potential Cost 

Recommendations Savings 

The Office of Secondary Market 1 $0

Oversight's Examination Policies and

Procedures 

(September 24, 2021) 

The Farm Credit Administration’s 1 $0 

Compliance with the Federal 

Information Security Modernization Act 

for Fiscal Year 2020 

(October 30, 2020) 

Total: 2 $0 

Table 8 identifies recommendations made during previous reporting periods for which 

corrective action had not been completed as of March 31, 2022. An up-to-date list of

open OIG recommendations may be found at Oversight.gov/recommendations. 

Table 8 

Report Recommendation 

The Office of Secondary 

Market Oversight's 

Examination Policies and 

Procedures 

The Farm Credit 

Administration’s 

2 

6 

The Office of Inspector General recommends the 

Office of Secondary Market Oversight document 

examination policies and procedures unique to the 

examination of the Federal Agricultural Mortgage 

Corporation. 

Not publicly released. 

Compliance with the 

Federal Information 

Security Modernization 

Act for Fiscal Year 2020 

Semiannual Report to Congress | October 1, 2021 – March 31, 2022 20 
EQUIREMENTS 

R EPORTING 

R NDEX OF I

The following is an index to IG Act reporting requirements. 

Section Description Page 

4(a)(2) Review of legislation and regulations 15 

5(a)(1) Significant problems, abuses, and deficiencies 4-7 

5(a)(2) Recommendations for corrective action 7-8 

5(a)(3) 

5(a)(4) 

Recommendations described in previous semiannual 

reports for which corrective action has not been completed 

Matters referred to prosecutive authorities 

20 

10 

5(a)(5) 

5(a)(6) 

Reports of information or assistance unreasonably refused 

or not provided 

Audit, inspection, and evaluation reports issued 

None 

17 

5(a)(7) Summaries of significant reports 4-7 

5(a)(8) Management decisions with respect to questioned costs 18 

5(a)(9) 

5(a)(10) 

Management decisions on recommendations that funds be 

put to better use 

Reports issued before the reporting period for which no 

management decision has been made, for which no 

comment was returned, and for which there are 

19 

20 

5(a)(11) 

outstanding unimplemented recommendations 

Significant revised management decisions None 

5(a)(12) 

5(a)(13) 

5(a)(14)-(15) 

Significant management decisions with which the IG 

disagrees 

Information described under section 804(b) of the Federal 

Financial Management Improvement Act of 1996 

Peer reviews conducted by another OIG 

None 

None 

15-16 

5(a)(16) Peer reviews conducted by the FCA OIG 15-16 

5(a)(17) Statistical tables for investigations and referrals 10 

5(a)(18) Metrics for developing investigative statistics 10 

5(a)(19)

5(a)(20) 

 Investigations involving a senior government employee 

where allegations of misconduct were substantiated 

Instances of whistleblower retaliation 

None 

None 

5(a)(21) Attempts to interfere with OIG independence None 

5(a)(22)(A) 

5(a)(22)(B)

Closed audits, inspections, and evaluations not disclosed to 

the public 

 Closed investigations involving a senior government 

employee not disclosed to the public 

None 

None 

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

reportable under section 845 of the National Defense Authorization Act of 2008.8 

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

21 Farm Credit Administration | Office of Inspector General 
 
Credit Adininistration 

Office of Inspector General 

REPORT FRAUD, WASTE, ABUSE, & 

MISMANAGEMENT 

Fraud, waste, abuse, and mismanagement in government concerns

everyone: Office of Inspector General staff, Farm Credit Administration

employees, Congress, and the general public. We actively solicit

allegations of any inefficient and wasteful practices, fraud, and 

mismanagement related to FCA programs and operations. You can 

report allegations to us in several ways: 

Phone: (800) 437-7322 (Toll-Free)

(703) 883-4316 

Fax: (703) 883-4059 

Email: fca-ig-hotline@rcn.com 

Mail: 1501 Farm Credit Drive 

McLean, VA 22102-5090 

To learn more about reporting wrongdoing to the OIG, please visit our

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