Farm Credit Administration

Office of Inspector General

Audit Report

Farm Credit Administration’s 

Financial Statements

Fiscal Year 2022

A-22-FS

November 10, 2022
1501 Farm Credit Drive, McLean, VA 22102 703-883-4030 www.fca.gov/about/inspector-general

November 10, 2022

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

The Honorable Jeffery S. Hall, Board Member

The Honorable Glen R. Smith, Board Member

Farm Credit Administration

1501 Farm Credit Drive

McLean, VA 22102-5090

Dear Chairman Logan and Board Members Hall and Smith: 

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

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

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

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

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

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

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

Financial Audit Manual. 

In its audit of FCA, HRK reported: 

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

U.S. generally accepted accounting principles;

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

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

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

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

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

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

reporting, or on compliance with laws and other matters. HRK is responsible for the attached 

auditor’s report dated November 8, 2022, and the conclusions expressed therein. However, our 

review disclosed no instances where HRK did not comply, in all material respects, with Government 

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

Respectfully,

Sonya K. Cerne 

Assistant Inspector General for Audits, Inspections, and Evaluations

Enclosure
Independent Auditors' Report 

The FCA Board and Inspector General 

Farm Credit Administration 

Report on the Audit of the Financial Statements 

Opinion 

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

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

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

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

In our opinion, FCA's financial statements present fairly, in all material respects, FCA's financial position 

as of September 30, 2022, and 2021, and its net cost of operations, changes in net position, and budgetary 

resources for the fiscal years then ended in accordance with accounting principles generally accepted in 

the United States of America. 

Basis for Opinion 

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

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

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

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

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

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

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

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

appropriate to provide a basis for our audit opinion. 

Responsibilities of Management for the Financial Statements 

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

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

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

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

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

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

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

financial statements that are free from material misstatement, whether due to fraud or error.
The FCA Board and Inspector General 

Farm Credit Administration (continued) 

Auditors' Responsibilities for the Audit of the Financial Statements 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

statements. 

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

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

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

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

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

financial statements. 

 Perform other procedures we consider necessary in the circumstances. 

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

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

matters that we identified during the audit. 

Required Supplementary Information 

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

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

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

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

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

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

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

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

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

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

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

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

sufficient evidence to express an opinion or provide any assurance. 
The FCA Board and Inspector General 

Farm Credit Administration (continued) 

Other Information 

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

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

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

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

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

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

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

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

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

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

our report. 

Other Reporting Required by Government Auditing Standards

Report on Internal Control over Financial Reporting

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

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

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

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

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

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

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

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

preparing performance information and ensuring efficient operations. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

where appropriate, will report on them separately. 
The FCA Board and Inspector General 

Farm Credit Administration (continued) 

Report on Internal Control over Financial Reporting (continued)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

applicable to the entity.

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

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

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

occur and not be detected by these tests. 

Purpose of the Other Reporting Required by Government Auditing Standards 

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

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

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

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

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

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

November 8, 2022 

Washington, DC 
REPORT FRAUD, WASTE, ABUSE, & 

MISMANAGEMENT

Fraud, waste, abuse, and mismanagement in government concerns 

everyone: Office of Inspector General staff, FCA 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

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.