FARM CREDIT ADMINISTRATION

OFFICE OF INSPECTOR GENERAL

FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

Message from the Inspector General

I am pleased to submit this Semiannual Report to Congress, which addresses the many changes 

we have made in the Office of Inspector General (OIG), and the activities and accomplishments 

of our office in the Farm Credit Administration (FCA or Agency) for the period from October 1, 

2017 through March 31, 2018.

During this reporting period, our office underwent changes involving reduced staff and greater 

efficiency. Since the first of the year, we have been using the shared legal and investigative 

services of the Treasury Inspector General for Tax Administration (TIGTA). It is reassuring to know 

that the exceptional staff at TIGTA support us for both legal and investigative advice. 

During this reporting period, the audit, inspection, and evaluation activities of our office focused 

on Agency physical security in two FCA field offices, FCA’s Office of Secondary Market Oversight, 

and travel compensation and incentives. We also introduced an evaluation product that will 

benchmark our information technology spending and use of contractors against the other 

federal financial regulators to better inform the FCA Board’s decisions and policy. This past year 

Brown and Company audited FCA’s compliance with the Federal Information Security 

Modernization Act of 2014 

and concluded FCA’s information security program was effective. The Agency received another 

clean opinion on its financial statements from the outside auditing firm, Harper, Rains, Knight & 

Company, P.A. (HRK). We contracted with HRK for the audit of FCA’s fiscal year 2018 financial 

statements, a contract that can be renewed every year up to the next 4 years. 

Our office conscientiously carries out its reporting duties to the FCA Board and Congress. We 

held two quarterly briefings with each of the three members of the FCA Board and met with our 

oversight committees in both the Senate and the House. We also continued our outreach efforts, 

publishing the second issue of our internal newsletter, the dIG, and participated in several 

Council of the Inspectors General on Integrity and Efficiency committees and workgroups, 

including the workgroup that reviewed the top management and performance challenges 

reported throughout multiple federal agencies. 

This reporting period, FCA welcomed Glen R. Smith, our newest member of the FCA Board, 

whose term runs from December 8, 2017 to May 21, 2022. Board Member Smith hails from 

Atlantic, Iowa, with experience in farm management, land appraisal, and

farmland brokerage services. He also owns a family farm operation that

encompasses about 2,000 acres of primarily corn and soybeans. We

welcome Board Member Smith to the Agency. 

Wendy R. Laguarda

Inspector General
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

Abbreviations 

Agency – Farm Credit Administration

Charge Card Act – The Government Charge Card Abuse Prevention Act of 2012

CIGIE – Council of the Inspectors General on Integrity and Efficiency

FAMC – Federal Agricultural Mortgage Corporation

FCA – Farm Credit Administration

FCS – Farm Credit System

FISMA – Federal Information Security Modernization Act of 2014

FLRA – Federal Labor Relations Authority

FY – Fiscal Year

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

IAA – Inter-Agency Agreement

IG – Inspector General

IG Act – Inspector General Act of 1978, as amended

IT – Information Technology

OCPA – Office of Congressional and Public Affairs

OE – Office of Examination

OIG – Office of Inspector General

OIT – Office of Information Technology

OMB – Office of Management and Budget

OSC – Office of Special Counsel

OSCRA – OSC Reauthorization Act of 2017

OSMO – Office of Secondary Market Oversight

PPP – Prohibited Personnel Practice

Pub. L. – Public Law

System – Farm Credit System

TIGTA – Treasury Inspector General for Tax Administration

WPA – Whistleblower Protection Act of 2017
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

Table of Contents 

MISSION, VISION, VALUES, GOALS.......................................................................................................... 1

BACKGROUND ............................................................................................................................................ 2

STRATEGIC GOALS...................................................................................................................................... 5

PERFORMANCE MEASURES ...................................................................................................................... 9

AUDITS, INSPECTIONS, AND EVALUATIONS ........................................................................................11

Reports Issued.......................................................................................................................................11

Table 1: Audit, Inspection, and Evaluation Reports Issued .........................................................11

In Progress.............................................................................................................................................17

Agreed-upon Actions...........................................................................................................................19

Table 2: Audit, Inspection, and Evaluation Agreed-Upon Actions .............................................19

Open Agreed-upon Actions................................................................................................................20

Table 3: Open Audit, Inspection, and Evaluation Agreed-Upon Actions ..................................20

OTHER REPORTS.......................................................................................................................................21

Survey of Farm Credit System Institutions ........................................................................................21

Charge Card Risk Assessment.............................................................................................................22

INVESTIGATIONS......................................................................................................................................23

Table 4: Investigative Activity..........................................................................................................25

LEGISLATIVE AND REGULATORY REVIEWS ...........................................................................................26

REPORTING AND OUTREACH.................................................................................................................30

APPENDIX A: FCA Organizational Chart................................................................................................31

APPENDIX B: Peer Reviews ......................................................................................................................32

APPENDIX C: Management Decisions....................................................................................................34

APPENDIX D: Index of Reporting Requirements ..................................................................................35
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

1 

Mission, Vision, Values, Goals

Our Mission

The OIG’s independent eyes, ears, and voice serve to protect, inform, 

and advance Agency programs and operations.

Our Vision

Harvesting Change

Our Values

Relevant, Respectful, Trustworthy, and Objective

Our Goals

1. Detect and Deter Fraud, Waste, and Abuse 

2. Investigate and Protect Against Wrongdoing

3. Promote Quality and Value

4. Advance FCA’s Future 

GOAL 1 GOAL 2 GOAL 3 GOAL 4

Perform risk-based 

audits, inspections, 

and evaluations

Guard confidentiality

Create benchmarks 

for improved Agency 

decision making

Recruit, retain, and 

empower a diverse 

workforce

Reinforce the OIG as a 

safe zone for 

reporting fraud, 

waste, and abuse

Produce timely, clear, 

focused, and factual 

reports of 

investigation

Ensure the OIG and 

FCA are models for 

good government

Promote leadership, 

vision, and expertise

Listen to and 

understand the needs, 

challenges, and 

interests of our 

stakeholders

Provide outreach on 

how to prevent fraud, 

waste, and abuse 

Produce OIG products 

that are timely, 

relevant, reasonable, 

and helpful

Leverage technology

Source: FCA OIG’s Strategic Plan
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

2 

Background 

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

United States government responsible for the regulation and examination of Farm Credit 

System (FCS or System) institutions chartered under the Farm Credit Act of 1971, as 

amended. 

As a non-appropriated agency, FCA funds its expenses primarily by assessing the FCS 

institutions. FCA’s revised budget for fiscal year (FY) 2018 is $70,600,000. 

At the end of the prior semiannual reporting period, the Agency had 299 employees. 

As of the end of this reporting period, FCA has 300 employees, about half of whom 

are examiners located in the Agency’s five field offices as shown below. 

Headquarters McLean, VA

Bloomington, MN

Sacramento, CA Denver, CO

Dallas, TX

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The System is a government-sponsored enterprise comprised of 3 Farm Credit Banks, 1 

Agricultural Credit Bank, 1 Federal Land Credit Association, and 68 Agricultural Credit 

Associations that primarily makes loans to agriculture in all 50 states and Puerto Rico. The 

System raises funds by selling securities in the national and international money markets 

through its special purpose entity, the Federal Farm Credit Banks Funding Corporation. 

These securities are not guaranteed by the U.S. government. 

The Federal Agricultural Mortgage Corporation (FAMC), also a part of the System, is 

chartered by the federal government to provide a secondary market for agricultural 

mortgage loans. FAMC is publicly traded and issues its own debt securities. Additionally, 

there are five active service corporations that provide services to FCS entities and 

eligible borrowers.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

3 

Background 

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The mission of the Office of Inspector General (OIG) is as follows:

The OIG’s independent eyes, ears, and voice serve to protect, 

inform, and advance Agency programs and operations.

The Inspector General Act of 1978, as amended (IG Act), established the FCA OIG in 1989. 

The Inspector General (IG) is appointed by the FCA Board without regard to political 

affiliation and solely based on integrity and demonstrated ability in accounting, 

auditing, financial analysis, management analysis, investigations, law, or public 

administration.

While the OIG is under the general supervision of the FCA Board, it operates with 

independent hiring, contracting, and budget authority. The IG reports both to the FCA 

Board and to Congress. 

The three major components for this reporting period include audits, inspections, and 

evaluations of programs and operations, investigations, and outreach. 

Office of 

Inspector 

General

Audits, 

Inspections, and 

Evaluations

Investigations Outreach 
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

4 

Background 

Office of Inspector General

OIG Staff OIG employees continually seek ways to improve skills and become 

knowledgeable in the initiatives of the IG community. OIG staff must 

meet continuing education requirements. Development plans are 

used to identify long- and short-term career goals along with 

specific training and developmental needs. These plans are geared 

toward enhancing individual skills in the performance of official 

duties, cross training, succession planning, and meeting the criteria 

needed to achieve OIG performance goals and objectives.

Changes in Earlier this year, Ava Bell, whose duties include management and 

the OIG program analyst functions, took the training course conducted 

by the Inspector General Criminal Investigator Academy to 

become an 1810 investigator. Ms. Bell began her primary duties 

as an 1810 investigator for the OIG starting in March 2018, while 

continuing her secondary analyst role.

In November 2017, our office executed an Inter-Agency 

Agreement (IAA) with the Treasury Inspector General for Tax 

Administration (TIGTA) to obtain legal and investigative services, 

as necessary. The IAA runs from January 1 through September 

30, 2018, at which time we will reassess this shared services 

arrangement with the possibility of renewing for another fiscal 

year. 

We are very grateful to the exceptional lawyers and investigators 

at TIGTA for providing us with needed legal and investigative 

support.

The following organizational chart shows the OIG as of March 31, 2018:

Inspector General

Wendy Laguarda, JD

Senior Auditor Senior Auditor Senior Auditor Investigator

Tammy Rapp, CISA, CPA Sonya Cerne, CFE Tori Kaufman, CPA Ava Bell, JD
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

5 

Strategic Goals

To accomplish our mission, the OIG identified four strategic goals in our Strategic Plan. 

The following summarizes our strategic goals and related outcomes during this reporting

period.

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Critical to the OIG’s mission is detecting and deterring fraud, waste, and abuse. We

employ a multi-faceted approach of detection and deterrence that includes:

• Performing risk-based audits, inspections, and evaluations.

• Reinforcing the OIG as a safe zone for reporting fraud, waste, and abuse.

• Listening to and understanding the needs, challenges, and interests of our

stakeholders.

During this reporting period, we issued three audit reports and two inspection reports,

with two reviews in progress. The in-progress reviews include an information

technology (IT) budget benchmarking study and a physical security inspection of the 

Dallas office.

The OIG hotline is available 24/7 to confidentially receive tips and complaints about

fraud, waste, or abuse relating to FCA programs and operations. The OIG has telephone

and fax numbers, as well as an independent hotline email account. Only OIG staff have

access to these avenues that allow individuals to report allegations to the OIG directly

and confidentially.

Communication with Agency stakeholders is another key aspect of the OIG’s oversight.

During our reviews, we continually meet with Agency officials to keep them informed

of our progress, results, and areas for improvements. The IG regularly meets with FCA 

Board Members to discuss work products, Agency priorities, and any concerns. The IG 

and OIG staff also frequently interact with Agency staff and managers to obtain an 

understanding of their needs, challenges, and interests in our work.

An OIG goal is to work diligently with Agency management to obtain agreement on

planned actions addressing any recommendations resulting from an audit, inspection,

or evaluation. Management identifies planned actions they will take to address any

recommendations before we issue a final report. Once the OIG is satisfied with

management’s planned actions, we convert our “recommendation” to an “agreedupon action” before issuing our final report. In some instances, corrective action is

completed prior to issuing a final report. We are pleased to recognize completed

actions in the final report. During this reporting period, Agency management agreed

with all our recommendations and developed corrective action plans.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

6

Strategic Goals

Goal 2: Investigate & Protect Against Wrongdoing

The OIG conducts timely, relevant, and high-quality investigations. Our investigative 

reports fairly and accurately report our findings and may offer actions for 

consideration to correct and deter future misconduct, fraud, waste, or abuse. 

The OIG employs the following actions in support of this goal:

• Guard confidentiality

• Produce timely, clear, focused, and factual reports of investigation

• Provide outreach on how to prevent fraud, waste, and abuse

Our investigative procedures and internal controls are designed, to the extent 

possible, to guard the confidentiality of all complainants and persons involved in the 

investigative process. As provided by the IG Act, the FCA OIG will not disclose the 

identity of a complainant without the consent of the complainant, unless the IG 

determines that such disclosure is unavoidable during an investigation. To ensure all 

relevant aspects of the investigation are accurately and objectively addressed in our 

reports, our investigations manual describes: the process for developing an 

investigation plan and obtaining IG approval; legal requirements during an 

investigation; communications and case management; reporting procedures; and 

referrals to FCA. The OIG follows the Council of Inspectors General on Integrity and 

Efficiency (CIGIE) Quality Standards for Investigations as guidance for all its 

investigative activity.

OIG evaluates all complaints, examining jurisdictional issues, the nature of the 

allegation, and other factors. We also receive complaints from borrowers or potential 

borrowers in the System regarding their lending rights or alleged wrongdoing in an 

FCS institution. We refer these complaints to the FCA Office of Congressional and 

Public Affairs (OCPA), as required by Agency policy, and follow up, as appropriate. The 

OIG also assesses availability of records and other factors to determine whether the 

complaint includes allegations of criminal, civil, or administrative violations that 

necessitate a formal investigation. During this reporting period, the OIG reviewed 13 

complaints and did not open any formal investigations.

The OIG participates in FCA’s new employee training to discuss our investigative 

program, and we distribute posters identifying hotline contact information, as well as 

Office of Special Counsel (OSC) notices. This reporting period, we updated the OIG 

whistleblower page to more clearly explain whistleblower protections.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

7

Strategic Goals

Goal 3: Promote Quality

& Value

As the safety and soundness regulator of the System, FCA ensures the well-being and 

future of agricultural producers and rural communities. OIG is committed to 

promoting FCA’s quality of oversight and maximizing the value of funds invested in 

such oversight. 

The OIG performs the following actions in support of this goal:

• Create benchmarks for improved Agency decision making

• Ensure the OIG and FCA are models for good government

• Produce OIG products that are timely, relevant, reasonable, and helpful

During this reporting period, the OIG initiated a benchmarking study of IT spending

and use of contractors. The purpose of this benchmarking study is to determine the 

changes in IT spending and use of contractors over the past three years and compare 

FCA’s IT budget and use of contractors to other federal financial regulators.

The OIG is continuously working to ensure compliance with standards, improve 

internal processes, and advance professional competencies. During this period, we 

continued to review and update our office directives. We prioritize staff training to 

meet requirements for professional education and gain new skills.

OIG products are generally completed in six months or less. Our audit, inspection, 

and evaluation work is risk based to align with top management and performance 

challenges at the Agency. This reporting period, our work included 14 agreed-upon 

actions to improve the Agency.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

8

Strategic Goals

Goal 4: Advance FCA ́

s Future

The OIG continuously strives to advance excellence and innovation in our own 

organization and operations. 

The OIG employs the following actions in support of this goal:

• Recruit, retain, and empower a diverse workforce

• Promote leadership, vision, and expertise

• Leverage technology

The OIG continuously works to retain and empower a diverse workforce. This reporting 

period, each OIG employee received training for professional development. Although 

the OIG is not currently recruiting for positions, the IAA with TIGTA provides an 

opportunity for diversity in our workforce. 

OIG staff assume leadership roles in the IG community. Staff auditors participate on 

various CIGIE committees and workgroups. One senior auditor teaches for CIGIE and 

was recognized with an “Adjunct Instructor of the Year” award. OIG staff maintain 

various professional certifications in different areas of expertise, including: auditing, IT 

auditing, accounting, fraud, legal, and mediation. 

One example of the OIG leveraging technology is our initiative to adopt an email 

record retention policy. The Office of Management and Budget (OMB) requires federal 

agencies to manage all email records in an electronic format by December 31, 2016.

1

Capstone was developed to offer agencies a simplified and automated approach to 

managing email. This reporting period, the OIG evaluated the Capstone approach, 

made the determination to use Capstone, and adopted a policy for such use. 

In addition, the OIG embraces technology to increase our efficiency. We are currently 

exploring other automated workpaper solutions to determine the best solution for our 

needs. 

 1 OMB Memorandum M-14-16, Guidance on Managing Email (September 15, 2014)
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

9 

Performance Measures 

The following discussion describes the performance measures of our office, as set forth 

in our Strategic Plan for FYs 2018-2019, and the actions we have taken to meet these

measures.

Measuring Our Performance

Performance 

Measure

Actions Taken

Efficiencies Have been gained with the downsizing of our office and the use of 

shared services with TIGTA.

Completion time of

OIG work 

assignments

Has been appropriate based on the complexity or unique nature of 

each assignment. Most of our audit, inspection, and evaluation 

reports are completed within a six-month period or less. All our 

required reports have been completed on time. We had no 

investigations during the reporting period but aim to complete 

them on as timely a basis as possible.

Accepted audit, 

inspection, and 

evaluation 

recommendations

Have been 100 percent accepted by the Agency and converted to 

agreed-upon actions. 

Complaints activity Has remained consistent with activity in the recent past, reflecting 

the fact that employees have confidence in the OIG and its ability 

to investigate wrongdoing while guarding their confidentiality. 

Interaction with 

Congress

Has included “meet and greet” sessions with our oversight 

committees and a prompt and satisfactory response to a 

committee’s inquiries regarding audit, inspection, and evaluation

recommendations and agreed-upon actions. 

Communication 

with the FCA Board 

and management

Is an ongoing priority of our office. We held quarterly briefings with 

each FCA Board Member and their executive assistants. We 

regularly communicate with FCA management through our audit, 

inspection, evaluation, and investigative work.

Aligning audit 

planning with FCA’s 

top management 

and performance 

challenges

Is important to ensure that our work is risk-based and that it 

addresses the most significant challenges of the Agency. In this 

report, we cite the relevant management and performance 

challenge in discussing each audit, inspection, and evaluation.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

10

Performance Measures 

Measuring Our Performance

Performance 

Measure 

Actions Taken

Outreach efforts Have included two quarterly issues of the dIG, our office 

newsletter with articles about what we do, how we do it, and 

why we do it, as well as examples of fraud, waste and abuse in 

government. We held a town hall meeting with the Office of 

Examination (OE) management team where the IG presented 

her perspective on the role of the OIG and answered questions.

Participation in 

CIGIE

Is an integral part of our office objectives. Every staff member 

is active on one or two committees or initiatives of CIGIE, 

including participating in CIGIE’s teaching program and in peer 

reviews. Interacting with the wider IG community is a necessary 

and beneficial part of our mission.

Training taken This reporting period included audit, investigative, IT, and 

mediation training. Each staff member is cognizant of the 

required training that they must take to keep up their skills and 

all such training requirements have been met. Of note, a senior 

auditor completed the Harvard Senior Executive Fellows course 

at the Harvard Kennedy School in the Fall of 2017. 

Diversity of OIG 

staff when hiring 

opportunities arise

Is a goal of our office. However, we have had no hiring 

opportunities this reporting period, but our shared services 

agreement with TIGTA provides an opportunity to work with a 

diverse staff.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

11

Audits, Inspections, and Evaluations 

Summary

This reporting period, the OIG continued to provide FCA with high-quality products. 

We issued three audit reports and two inspection reports, with a total of 14 agreedupon actions with FCA management. We also have two reviews in progress. The OIG 

found no significant problems, abuses, or deficiencies relating to the administration of 

programs and operations. 

The OIG conducts all audits in accordance with Government Auditing Standards issued by 

the Comptroller General of the United States for audits of federal organizations, programs, 

activities, and functions. We conduct inspections and evaluations in accordance with CIGIE’s

Quality Standards for Inspection and Evaluation. 

Copies of most OIG reports are available on our website, by contacting the OIG at (703) 

883-4030, or by email. We offer a free subscription service that provides automatic 

notification by email when a new report or other information is posted to the OIG website. 

Finally, we post all our public reports and information on Oversight.gov.

Reports Issued

Below is a listing of the audit, inspection, and evaluation reports issued during this 

reporting period. FCA OIG did not identify any questioned costs, unsupported costs, 

or disallowed costs during this reporting period.

Table 1: Audit, Inspection, and Evaluation Reports Issued

Report Title

Number of 

Agreed-upon Actions/ 

Recommendations

FY 2017 Audit Report on Evaluation of FCA’s Compliance with the Federal 

Information Security Modernization Act (FISMA)

4

Audit of FCA’s Financial Statements Fiscal Year 2017 0

Audit of FCA’s Office of Secondary Market Oversight 5

Inspection of Physical Security in FCA’s Bloomington Field Office 5

Inspection of FCA’s Travel Compensation and Incentives 0

Total 14
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

12

Audits, Inspections, and Evaluations 

Reports Issued

FY 2017 Evaluation of the Farm Credit Administration’s 

Compliance with the Federal Information Security 

Modernization Act of 2014 (FISMA)

Audit 

Justification

FISMA requires IGs or an independent external auditor to 

perform an annual evaluation of their agency’s security program 

and practices. The OIG contracted with Brown and Company to 

perform the independent evaluation (which was undertaken as 

an audit) of FCA’s compliance with FISMA for FY 2017. 

Audit 

Objective

The objectives of this audit were to determine the effectiveness 

of FCA’s information security programs and practices and to 

provide the OIG with the ability to report the results to the OMB 

and the U.S. Department of Homeland Security. 

Management 

Challenge

The OIG identified information technology as one of FCA’s top 

management and performance challenges in FCA’s FY 2017 

Performance and Accountability Report. This challenge is the 

ability to leverage investments in IT while maintaining a secure 

environment. The OIG performs an annual evaluation of FCA’s 

compliance with FISMA to address this management challenge.

Conclusions Brown and Company concluded that FCA's information security 

program is generally compliant with the FISMA legislation and 

applicable OMB guidance, was effective, and provided 

reasonable assurance of adequate security. The contractor found 

that FCA continued to make positive strides in addressing 

information security weaknesses, but identified improvements 

that could be made in the areas of: identity management, 

configuration management, and incident response. The Office of 

Information Technology (OIT) completed corrective action on 

two of the four agreed-upon actions prior to the end of this 

reporting period. 

Brown and Company’s report contained sensitive information 

about FCA and potential vulnerabilities that could be used 

against the Agency; therefore, the OIG did not release the full 

report publicly.

Milestones The final report, OIG 2017 Evaluation of the FCA’s Compliance 

with the FISMA, was issued on October 27, 2017.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

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13

Audits, Inspections, and Evaluations 

Reports Issued

Audit of FCA’s Financial Statements Fiscal Year 2017

Audit 

Justification

The Accountability of Tax Dollars Act of 2002 requires FCA to 

submit to the Congress and OMB audited financial statements 

each fiscal year. The OIG contracted with Harper, Rains, Knight & 

Company, P.A. (HRK), an independent public accounting firm to 

perform the audit, and monitored the audit of FCA’s financial 

statements for FY 2017.

Audit 

Objective

The objective of the audit was for the auditors to express an 

opinion on FCA’s financial statements.

Management 

Challenge

The financial statement audit is a required audit and is therefore 

not designed to address any specific FCA management and 

performance challenge. However, this audit indirectly addresses 

the management challenge on organizational structure and 

governance, which entails FCA’s need to align its organizational 

structure, in part, to the goals and priorities of the FCA Board 

while remaining a strong safety and soundness regulator. 

Conclusions HRK completed the audit and issued an unmodified opinion in 

November 2017. 

In the auditors’ opinion, FCA’s principal financial statements 

present fairly, in all material respects, the financial position of the 

Agency as of the fiscal year ended September 30, 2017, in 

conformity with generally accepted accounting principles.

HRK considered FCA’s internal control over financial reporting to 

determine the audit procedures for the purpose of expressing an 

opinion on the financial statements. The auditors did not express 

an opinion on the effectiveness of FCA’s internal controls; 

however, they did not identify any deficiencies considered to be 

a material weakness.

The auditors performed tests of FCA’s compliance with selected 

provisions of laws and regulations that could have a direct and 

material effect on the financial statements. Although they did not 

express an opinion on compliance with those provisions, they did 

not identify any instances of noncompliance.

Milestones The final report, Audit of FCA’s Financial Statements for Fiscal 

Year 2017, was issued on November 16, 2017.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

14

Audits, Inspections, and Evaluations 

Reports Issued

FCA’s Office of Secondary Market Oversight

Audit 

Justification

FAMC is a government-sponsored enterprise with the mission of 

providing a secondary market for agricultural real estate 

mortgage loans, rural housing mortgage loans, and rural utility 

cooperative loans. FAMC is regulated, examined, and supervised 

by FCA through the Office of Secondary Market Oversight 

(OSMO). The OIG initiated this audit because OSMO had never

been reviewed by the OIG since its formation. 

Audit 

Objective

The objective of the audit was to assess the staffing arrangements 

and reporting process for OSMO. In addressing staffing in OSMO, 

we also looked at how the Agency is assessing FAMC for the cost 

of its supervision, regulation, and enforcement. 

Management 

Challenge

This audit addresses the management challenge on 

organizational structure and governance. This challenge 

entails FCA’s need to align its organizational structure to the 

goals and priorities of the FCA Board and the Executive Branch 

reform initiative while remaining a strong safety and soundness 

regulator. 

Conclusions We found staff resources were planned and projected each year,

and staff hours are tracked by office and employee. An annual 

assessment amount is calculated and communicated to FAMC. 

In response to our audit, OSMO revised its office directive and 

required independence documentation from rotational staff. 

OSMO also created an office directive on the assessment process 

roles and responsibilities. 

The Office of the Chief Financial Officer documented the 

methodology and process used to calculate the FAMC 

assessments. 

The Office of the Board agreed to document the reporting 

relationship between the OSMO Director and the FCA Board, 

including delegations, supervisory relationships, and FCA Board 

oversight involvement of the OSMO Director. This action remains 

open. 

Milestones We issued the final report, FCA’s OSMO Oversight, on March 20, 

2018.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

15

Audits, Inspections, and Evaluations 

Reports Issued

Inspection of Physical Security in FCA’s Bloomington 

Field Office

Inspection 

Justification

Physical security controls safeguard FCA employees and assets. 

Physical security is unique in different locations and buildings, 

and the strongest controls cannot eliminate security risks. 

However, strong controls and preparedness can improve overall 

security. For this inspection, we reviewed the Bloomington field 

office. Our review focused on controls related to access, 

computers and other equipment, emergency preparedness, and 

personnel records. 

Inspection 

Objective

The objective of the inspection was to determine the 

effectiveness of controls related to physical security in the 

Bloomington field office. 

Management 

Challenge

This inspection addresses the management challenge on human 

capital. This challenge entails FCA’s need to maintain a welltrained, sustainable workforce in the face of retirement 

eligibilities, workforce retention, and diversity, and the need to 

invest in its employees and their development. To address this 

management challenge, this inspection looked at physical 

security controls in the workplace for the safety of FCA 

employees. 

Conclusions We found controls were in place and largely effective. However, 

we identified opportunities to further improve physical security 

in the Bloomington field office. In response to our inspection, 

Agency management completed five actions that will improve 

physical security. The report contains sensitive information about 

FCA and potential vulnerabilities. Therefore, we did not release 

this report publicly.

Milestones We issued the final report, Physical Security in FCA’s Bloomington 

Field Office, on March 19, 2018.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

16

Audits, Inspections, and Evaluations 

Reports Issued

Farm Credit Administration’s Travel Compensation and 

Incentives

Inspection 

Justification

FCA pays travel compensation to employees who travel on official 

business for the Agency in the amount of $50 per night for every 

night of eligible travel that exceeds 50 nights in a calendar year. 

The Agency also provides other travel incentives through its 

awards program by rewarding employees for contributing to the 

economy and efficiency of the Agency, such as reducing costs for 

official business travel through use of personal frequent flyer 

miles. Our inspection focused on program controls and program 

administration for FYs 2016-2017.

Inspection 

Objective

The objective of this inspection was to determine whether the 

Agency is effectively and efficiently administering the Travel 

Compensation Program and other travel incentives.

Management 

Challenge

This inspection addresses the management challenge on human 

capital. Recognizing that employees are FCA’s most valuable 

assets, this inspection addressed this challenge by looking at the 

internal controls of the travel program that rewards employees 

who travel excessively and who save the Agency travel expenses. 

Conclusions We found FCA effectively administered the program, with 

program controls that adequately limit risk for the Agency, 

including a documented policy that outlines the process for 

submitting claims for reimbursement and required supervisory 

approvals. The report contained no recommendations or agreedupon actions. 

Milestones We issued the final report, FCA’s Travel Compensation and 

Incentives, on March 30, 2018.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

17

Audits, Inspections, and Evaluations 

In Progress

Information Technology Budget Benchmarking Study

Evaluation 

Justification

IT spending, including the use of IT contractors, has changed at 

FCA over the past few years. The purpose of this benchmarking 

study is to determine the IT budget changes over the past three 

years and compare FCA’s IT budget and use of contractors to 

other federal financial regulators.

Evaluation 

Objective

The objective of this evaluation is to compare FCA’s IT budget and 

use of contractors to other federal financial regulators.

Management 

Challenge

The OIG identified information technology as one of four top 

management and performance challenges at FCA. This challenge 

is the ability to leverage investments in IT while maintaining a 

secure environment.

While cybersecurity threats are increasing, FCA is increasingly 

reliant on IT software to identify and analyze potential risks from 

the sensitive financial data that the Agency receives from the 

System. Hence, it is imperative that FCA has the necessary IT tools 

and staff to protect its systems and data from cybersecurity 

threats and to operate more efficiently and effectively. At the 

same time, the Agency must be prudent and responsible with its 

spending. 

Milestones Fieldwork is in progress and we anticipate issuing our report 

within the near future.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

18

Audits, Inspections, and Evaluations 

In Progress

Inspection of Physical Security in FCA’s Dallas Field 

Office

Inspection 

Justification

Physical security poses a continuous challenge for federal 

agencies. The OIG initiated physical security inspections of FCA 

field offices during 2017. To date, we have completed inspections 

of the Denver and Bloomington field offices.

Inspection 

Objective 

The objective of the inspection is to determine the effectiveness 

of controls related to physical security in the Dallas field office. 

Management 

Challenge

This inspection addresses the management challenge on human 

capital. This challenge entails FCA’s need to maintain a welltrained, sustainable workforce in the face of retirement 

eligibilities, workforce retention, and diversity, and the need to 

invest in its employees and their development. To address this 

management challenge, this inspection looked at physical 

security controls in the workplace for the safety of FCA 

employees. 

Milestones We issued the final report, Physical Security in FCA’s Dallas Field 

Office, on April 18, 2018, after the reporting period. 
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

19

Audits, Inspections, and Evaluations 

Agreed-upon Actions

The Agency issued five reports during this reporting period with 14 agreed-upon 

actions. In addition, at the beginning of the period, 13 carry-over actions were still 

open. As of March 31, 2018, eight agreed-upon actions remained open. Before and 

during the commencement of this reporting period, there were no questioned costs, 

unsupported costs, disallowed costs, or recommendations that funds be put to better 

use for which no management decision had been made.

Table 2: Audit, Inspection, and Evaluation Agreed-Upon Actions

Report Title Date 

Issued 

Carryover

from Prior

6-Month 

Period

New 

During this 

6-Month 

Period

Final 

Management 

Actions During 

this

6-Month Period

Open on 

3/31/2018

FCA’s Position 

Management and Job 

Evaluation Program

9/23/2016 1 0 0 1 

FCA’s Oversight of Young, 

Beginning, and Small 

Farmer Programs

9/28/2016 4 0 4 0 

FCA’s Awards Program 2/23/2017 1 0 1 0 

FCA’s Contracting 

Activities 5/22/2017 2 0 2 0 

Physical Security in FCA’s 

Denver Field Office 9/29/2017 5 0 1 4 

FY 2017 Evaluation of 

FCA’s Compliance with 

FISMA

10/27/2017 0 4 2 2 

FCA’s Office of Secondary 

Market Oversight 3/20/2018 0 5 4 1 

Physical Security in FCA’s 

Bloomington Field Office 3/19/2018 0 5 5 0 

Total 13 14 19 8 
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

20

Audits, Inspections, and Evaluations 

Open Agreed

-upon Actions

The following chart shows open agreed-upon actions for reports issued as of 

March 31, 2018. 

Table 3: Open Audit, Inspection, and Evaluation Agreed-Upon Actions

Report Title Date Issued 

Agreedupon 

Action #

Summary of Agreed-upon Action

FCA’s Position 

Management and Job 

Evaluation Program

9/23/2016 5 

Document the promotion process at the 

Executive Management Team phase of the OE 

career ladder.

Physical Security in 

FCA’s Denver Field 

Office

9/29/2017

2 

3 

4 

5 

To OE (not released publicly)2

To OE (not released publicly)

To OE (not released publicly)

To OE (not released publicly)

FY 2017 Evaluation of 

FCA’s Compliance with 

FISMA

10/27/2017 1 

2 

To OIT (not released publicly)3 

To OIT (not released publicly) 

FCA’s Office of 

Secondary Market 

Oversight

3/20/2018 5 

Document the reporting relationship between 

the OSMO Director and the FCA Board including 

delegations, supervisory relationships, and FCA 

Board oversight involvement of the OSMO 

Director.

 

2 Protected by 5 U.S.C. 552(b)(7)(F) 

3 Protected by 44 U.S.C. 3555(f)
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

21

Other Reports 

Summary

This reporting period, the OIG issued 15 surveys to FCS institutions and one report 

on the survey results to the Chief Examiner and FCA Board. The report summarizes 

survey results and stakeholder opinions on the quality and issues involved in the 

examination function. Additionally, the OIG issued its annual charge card risk 

assessment.

Survey of Farm Credit System Institutions

Survey 

Justification

The OIG administers a quarterly survey of FCS institutions 

regarding the quality and consistency of the Agency’s 

examination function, including the examiners’ performance. 

Survey 

Objective

The objective of the survey is to obtain feedback from FCS 

institutions about FCA examiners and the examination process

without identifying the responding institutions. 

Management 

Challenge

The OIG identified the Examination and Supervision Program

as one of four top management and performance challenges at 

FCA. This challenge identifies and addresses risks in the System 

through effective examination and supervision to ensure the 

System remains safe and sound. 

Conclusions The consistent trend in numerical ratings and narrative 

comments indicates that the System has a positive view of the 

examination program and staff.

Milestones Each quarter the OE identifies several FCS institutions that were 

in a position to provide meaningful survey responses for that 

period. The OIG sends surveys to those institutions for the 

quarter. 

In November 2017, the OIG issued 15 surveys to FCS institutions 

for feedback on the fourth quarter of FY 2017 (July 1 – 

September 30, 2017). Fourteen institutions responded. The OIG 

provided a report on January 19, 2018, to the Chief Examiner 

and the FCA Board. This report included summary data for FY 

2017. 
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

22

Other Reports 

Charge Card Risk Assessment

Justification The Government Charge Card Abuse Prevention Act of 2012 

(Charge Card Act) requires the OIG of each executive agency to 

conduct periodic assessments of charge card programs to analyze 

the risks of illegal, improper, or erroneous purchases.

Objective As part of adherence to the Charge Card Act and the 

implementation guidance, the OIG conducts an annual risk 

assessment of FCA’s charge card programs.

Management 

Challenge

This assessment addresses the management challenge on human 

capital. This challenge entails FCA’s need to maintain a welltrained, sustainable workforce in the face of retirement 

eligibilities, workforce retention, and diversity, and the need to 

invest in its employees and their development. To address this 

management challenge, the OIG assessed the risk of the Agency’s 

charge card program, which allows certain employees the use of 

government-issued travel and purchase cards for official business.

Conclusions Based on the risk assessment, we determined that the overall risk 

of FCA’s charge card programs was low. The OIG also issued a 

letter to OMB in December 2017 on the Agency’s progress in 

implementing audit recommendations related to the charge card 

program. All recommendations from our previous audits and 

inspections were agreed upon by management and subsequently 

closed. Therefore, there were no open recommendations or 

agreed-upon actions related to the charge card program as of 

December 2017.

Milestones The OIG completed its annual risk assessment and issued the 

Charge Card Risk Assessment to the Agency on March 9, 2018. 
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

23

Investigations 

Summary

The OIG Investigator has responsibility for developing and implementing an 

investigative program that furthers OIG’s objectives. The Investigator’s primary 

responsibilities include: 

• Investigating possible violations of criminal statutes relating to FCA’s programs 

and activities. 

• Investigating allegations of misconduct by FCA employees. 

• Interfacing with the Department of Justice on OIG-related criminal matters. 

• Coordinating investigations and OIG initiatives with other federal, state, and 

local investigative agencies and other OIGs through the Assistant IGs for 

Investigations Committee. 

Investigations cover a broad range of allegations concerning criminal wrongdoing or 

administrative misconduct affecting various FCA programs and operations. 

Investigations may be initiated because of allegations or referrals from: 

• FCA employees 

• Congress 

• OIG audits

• OIG Hotline 

• Private citizens

• OIG’s proactive efforts directed at areas bearing a high potential for fraud, 

waste, and abuse

This reporting period we processed 13 complaints, including seven borrower rightstype complaints, which we referred to the OCPA. No formal investigations were 

opened. 

The Agency cooperated in all preliminary investigations, providing records in response 

to investigation inquiries in a timely manner. The OIG had no reported allegations of 

whistleblower retaliation. The OIG had no investigations involving senior government 

employees in which allegations of misconduct were substantiated. No investigative 

matters were referred to prosecutorial authorities that resulted in prosecutions or 

convictions. 

The OIG conducts all investigations in accordance with CIGIE’s Quality Standards for 

Investigations. Closing memoranda for OIG investigations are available on our website. 
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

24

Investigations 

Investigations

Priorities The FCA OIG is committed to conducting fair, thorough, and 

timely investigations. Our work products will be clear, focused, 

and factual reports of investigation. It is also our goal to guard 

the confidentiality of all with whom we interact in the 

investigative process to the extent possible permitted by the law. 

In November 2018, FCA OIG executed an IAA for shared services 

with TIGTA for support services in the investigative function. The 

IAA period runs from January 1, 2018 to September 30, 2018, at 

which time it can be renewed. We met with TIGTA’s Deputy 

Assistant IG for Investigations in March to discuss the shared 

service arrangement.

Outreach We updated the FCA OIG Whistleblower page to more clearly 

explain the whistleblower protections, including whistleblower 

protection rights of federal contractors, and to include links to 

the latest whistleblower legislation. Our office also reviewed 

FCA’s guidance on whistleblower protections to ensure that the 

information was comprehensive and correct.

Complaint 

Activity

We received 13 complaints this reporting period as follows:

• Seven complaints were from System borrowers and were 

referred to OCPA. 

• Three complaints involved matters outside the 

jurisdiction of the FCA OIG and were either closed or 

referred to appropriate FCA offices or other federal 

agencies.

• One complaint alleged FCA did not follow standard 

process by announcing a vacancy without stating the job 

series or allowing for veterans’ preference. We opened a 

preliminary investigation and found the complaint to be 

unsubstantiated. The job series was included in the 

USAJOBS announcement and veterans’ preference did 

not apply to that position vacancy. Therefore, we closed 

the preliminary investigation.

• Two complaints involving similar matters are open.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

25

Investigations 

Investigative Activity

The table below is a summary of investigative activity during the reporting period.

Table 4: Investigative Activity

A. Total number of investigative reports issued during the reporting period 0 

B. Total number of persons referred to the Department of Justice for criminal 

prosecution during the reporting period 0 

C. Total number of persons referred to State and local prosecuting 

authorities for criminal prosecution during the reporting period 0 

D. Total number of indictments and criminal informations during the 

reporting period that resulted from any prior referral to prosecuting 

authorities

0 
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

26

Legislative and Regulatory Reviews

Summary

As required by section 4(a)(2) of the IG Act, the OIG routinely reviews existing and 

proposed legislation and regulations relating to programs and operations of FCA. 

The OIG makes recommendations concerning the impact of such law on the 

economy and efficiency in the administration of programs and operations or the 

prevention and detection of fraud and abuse.

This past reporting period, OIG continued to review and provide comment and 

analysis on existing and proposed cross-cutting legislation and regulations through 

our participation in various CIGIE committees, including the Legislation Committee.

The OIG reviewed the following significant legislation, rules, regulations, bookletters, 

and other Board approved actions.

Legislation

Whistleblower 

Legislation

This reporting period, the two following new laws were enacted 

to enhance the protection of whistleblowers:

• Whistleblower Protection Act of 2017 (WPA), Pub. L. 

No. 115-73 (Oct. 26, 2017) (5 U.S.C. 2302(b))

• OSC Reauthorization Act of 2017 (OSCRA), Pub. L. No. 

115-91 (Dec. 12, 2017) (5 U.S.C. 2302(c))

A summary of the laws follows and, as required, the OIG will 

work with the Agency to ensure that all FCA employees and 

contractors receive the required training.

New 

Prohibited 

Personnel 

Practice

The WPA added a 14th prohibited personnel practice (PPP), 

which makes it a PPP to “access the medical record of another 

employee or an applicant for employment as a part of, or 

otherwise in furtherance of, any conduct described in 

paragraphs (1) through (13) of 5 U.S.C. 2302(b).”

Public and 

Online Portal 

Posting about 

Whistleblower 

Protections

Under the OSCRA, FCA must post information about 

whistleblowing protections on our public website (FCA.gov) 

and any online portal accessible only to FCA employees.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

27

Legislative and Regulatory Reviews

Legislation

Education 

Requirements

New Employees: Within 180 days after the date of appointment 

of a new employee to FCA, the FCA Chairman, in consultation 

with OSC and the IG, must ensure that the new employee is 

informed of the rights and remedies available under: 

• PPPs (5 U.S.C. 2302(b)) 

• Merit Systems Protection Board 

• OSC 

• An employee’s right to seek corrective action under 5 

U.S.C. Chapter 12

Supervisors: Under the WPA, the FCA Chairman, in consultation 

with OSC and the IG, must provide annual training to supervisors 

regarding how to respond to complaints alleging a violation of 

whistleblower protections. FCA must also provide such training 

to new supervisors.

Supervisors’ 

Performance 

Appraisals

The OSCRA requires that the FCA Chairman, in consultation with 

the Office of Personnel Management and OSC, develop criteria 

to promote the protection of whistleblowers as a critical element 

for establishing the job duties of all supervisory employees. The 

criteria must include: 

• Principles for the protection of whistleblowers, such as 

the degree to which supervisory employees respond 

constructively when employees make protected 

disclosures. 

• How supervisors take responsible actions to resolve 

these disclosures. 

• Ways in which the supervisors foster an environment in 

which employees feel comfortable making such 

disclosures. 

FCA must submit an annual report to Congress detailing the 

number of annual performance appraisals which determined 

that an agency supervisor failed to meet the standards for 

protecting whistleblowers. The report must include the reasons 

for the failing determination and each performance-based or 

corrective action taken by FCA in response.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

28

Legislative and Regulatory Reviews

Legislation

Required 

Discipline 

Both the WPA and the OSCRA require discipline for supervisors 

who commit a prohibited personnel action defined in: 

• 5 U.S.C. 2302(b)(8) (retaliating against a whistleblower) 

• 5 U.S.C. 2302(b)(9) (other retaliation) 

• 5 U.S.C. 2302(b)(14) (accessing medical records in 

furtherance of a PPP)

Disciplinary action must be approved by the OSC. 

If the FCA Chairman or the IG determines that a supervisor 

violated one of the foregoing PPPs: 

• For the first offense, the Agency must propose to 

suspend a supervisor not less than 3 days. The FCA 

Chairman may propose additional action, including a 

reduction in grade of pay. 

• For the second offense, the FCA Chairman must propose 

removing the supervisor.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

29

Legislative and Regulatory Reviews

FCA Board Approved Actions

• Direct Final Rule on Technical Amendments to FCA Regulation Section 606.2(b): 

Assessment and Apportionment of Administrative Expenses (October 12, 2017)

• Office of Examination’s FY 2018 Oversight and Examination Plan (October 16, 

2017)

• FCS Building Association Budget and Assessments (November 16, 2017)

• FCA 2018 Compensation Plan (December 19, 2017)

• Inflation Adjustment to FCA Civil Money Penalties Regulation (January 4, 2018)

• Joint Notice of Proposed Rulemaking – Margin and Capital Requirements for 

Covered Swap Entities – Amendment to the Definition of “Eligible Master 

Netting Agreement” (January 25, 2018)

• Spring 2018 Abstract of the Unified Agenda and Regulatory Project Plan 

(February 20, 2018)

• Bookletter 069 on Lending and Loan Servicing Controls to promote efficiency, 

reduce risk of asset loss, ensure reliable financial statements, and ensure 

compliance with laws and regulations (March 8, 2018)
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

30

Reporting and Outreach 

Congress

In October, the IG and a Senior Auditor had meet and greet sessions with Congressional 

staffers from the Senate Committee on Agriculture, Nutrition and Forestry and the House 

Committee on Agriculture. The OIG discussed the audit plan, budget, and strategic goals 

of the office with the staff.

IG Community

OIG staff members are encouraged to take part in organizations that contribute to the 

mission of the IG community and their individual professional development. 

The IG is a member of CIGIE and serves on the CIGIE Legislation Committee and the 

Small and Unique Agency IGs working group. The IG also participated in writing a CIGIE

cross-cutting report on the top management and performance challenges facing 

multiple federal agencies. 

The Senior Auditors and Investigator also participate in CIGIE workgroups. One Auditor 

attends local Information Systems Audit and Control Association (ISACA) meetings and 

participates on CIGIE’s Audit Committee and the IT Subcommittee of the Federal Audit 

Executive Council. Another Senior Auditor is a member of the CIGIE Roundtable on 

Inspections and Evaluations and is an adjunct instructor for CIGIE’s Training Institute.

Another Senior Auditor is a member of the IG Act Commemoration Working Group. Our

Investigator participates in the Assistant IG for Investigations Committee. 

FCA

The OIG started a new outreach initiative by launching an internal, quarterly newsletter, 

the dIG, to FCA employees explaining the role of the OIG and how the OIG performs 

its work, including examples of fraud, waste, and abuse in government, and other 

topics. We issued two quarterly newsletters this reporting period. The IG also reports 

quarterly to the FCA Board and as needed.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

31

Appendix A: FCA Organizational Chart 

FCA ORGANIZATIONAL CHART
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

32

Appendix B: Peer Reviews 

Summary

Under various standards, OIGs have external quality assurance reviews of audits, 

investigations, inspections, evaluations, and other OIG activities. The purpose of these 

external reviews is to provide an additional level of assurance that the OIG conducts its 

audits, investigations, inspections, and evaluations in compliance with applicable 

professional standards.

Audit

Government Auditing Standards require an external peer review every three years. 

During this reporting period, FCA OIG did not have an external peer review of its 

audit function. The last peer review of our audit operations was completed by the 

Federal Labor Relations Authority (FLRA) OIG in August 2016 for the year ended on 

March 31, 2016. The FLRA OIG concluded that our system of quality control for the 

audit organization was suitably designed and complied with to provide reasonable 

assurance of performing and reporting in conformity with applicable professional 

standards in all material respects. We received the highest rating of pass, and FLRA 

OIG did not make any recommendations for improvement.

The next audit peer review of our office is scheduled for the period ending March 31, 

2019.

Inspections &

EvaluationsRecently, CIGIE membership adopted a new peer review requirement for OIGs that 

perform inspections and evaluations in accordance with CIGIE’s Quality Standards of 

Inspection and Evaluation. One senior auditor assisted CIGIE in implementing this 

new requirement. The senior auditor is a member of the peer review implementation 

team. 

Our first inspection and evaluation peer review is scheduled for the period ending 

June 30, 2019.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

33

Appendix B: Peer Reviews 

Investigation

s

CIGIE’s Qualitative Assessment Review Guidelines for Investigative Operations of 

Federal Offices of Inspector General established an independent external evaluation 

process for investigative operations. The objective of the investigation peer review 

is to determine whether internal controls 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. 

The last peer review of our investigation function was performed by the Securities 

and Exchange Commission OIG for the year ended September 30, 2007. SEC OIG 

concluded that our system of internal safeguards and management procedures for

the investigative function were in full compliance with quality standards and 

provided reasonable assurance of conforming with professional standards. 

Although there were no formal recommendations, SEC OIG made suggestions for 

improvements in our investigation practices and procedures.

FCA OIG is reinitiating the investigative peer review process of our investigation 

program. We have volunteered to participate in a peer review of our investigation 

function within the next few years.

Peer Reviews

of Other OIGs FCA OIG did not perform any peer reviews of other OIGs during this reporting 

period. There were also no outstanding recommendations made from any previous 

peer reviews conducted by our office.
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

34

Appendix C: Management Decisions 

Management Decisions

Status of 

Recommendations 

with No 

Management 

Decisions

All recommendations were agreed upon by management. 

Therefore, no management decisions have been made on 

audit, inspection, and evaluation reports issued before the 

beginning of this reporting period.

Revised 

Management 

Decisions

No management decisions were revised during the 

period. 

Agreement with 

Significant 

Management 

Decisions

There were no significant management decisions for the 

OIG to agree with regarding audit, inspection, and 

evaluation recommendations since all recommendations 

were agreed to by management. 

Reports for Which 

No Agency 

Comment Was 

Returned Within 

60 Days

There were no audit, inspection, or evaluation reports 

issued before the beginning of this reporting period for 

which no agency comment was returned within 60 days of 

providing the report to the Agency.

Instances Where 

the Agency 

Unreasonably 

Refused or Failed 

to Provide 

Information to the 

OIG or Attempted 

to Interfere with 

OIG Independence

During this reporting period, there were no instances 

where the Agency unreasonably refused or failed to 

provide information to the OIG or attempted to interfere 

with the independence of the OIG. 
FCA OIG Semiannual Report to Congress

October 1, 2017—March 31, 2018

https://www.fca.gov/home/inspector.html

35

Appendix D: Index of Reporting Requirements 

SECTION REQUIREMENT PAGE

4(a)(2) Review of legislation and regulations 26-29

5(a)(1) Significant problems, abuses, and deficiencies 11

5(a)(2) Recommendations for corrective action 11-16

5(a)(3) Prior recommendations not yet implemented 19-20

5(a)(4) Matters referred to prosecutive authorities 23

5(a)(5) Information unreasonably refused or not provided 34

5(a)(6) List of reports issued 11

5(a)(7) Summaries of significant reports 11-22

5(a)(8) Management decisions with questioned costs 19

5(a)(9) Management decisions on recommendations that funds be put 

to better use

19

5(a)(10)(A) Audit reports for which no management decision made 34

5(a)(10)(B) Audit reports with comments not received within 60 days 34

5(a)(10)(C) Audit reports with unimplemented recommendations 19-20

5(a)(11) Significant revised management decisions 34

5(a)(12) Significant management decisions with which the IG disagreed 34

5(a)(13) Compliance of Agency financial management system 13

5(a)(14)(15) Peer reviews conducted of this OIG 32

5(a)(16) Peer reviews conducted by this OIG 33

5(a)(17)(18) Statistical tables for investigations and referrals 25

5(a)(19) Investigations of a senior government employee with 

substantiated misconduct

23

5(a)(20) Instances of whistleblower retaliation 23

5(a)(21) Instances of attempts to interfere with IG independence 34

5(a)(22)(A) Closed audits not disclosed to the public 12, 15

5(a)(22)(B) Closed investigations involving a senior government employee 23

845 Significant contract audits required to be reported under National 

Defense Authorization Act for FY 2008 (Pub. L. 110-181)

N/A4

 

4 FCA OIG does not conduct contract audits. Therefore, we did not include this annex.
FARM CREDIT ADMINISTRATION

OFFICE OF INSPECTOR GENERAL

Phone: Toll Free (800) 437-7322; (703) 883-4316

Fax: (703) 883-4059

E-mail: fca-ig-hotline@rcn.com

Mail: Farm Credit Administration

Office of Inspector General

1501 Farm Credit Drive

McLean, VA 22102-5090