Information Technology

Benchmarking Study

E-18-01

OFFICE OF 

INSPECTOR GENERAL Evaluation Report 

Issued September 6, 2018

Evaluator

Tammy Rapp

FARM CREDIT ADMINISTRATION

Farm Credit Administration Office of Inspector General 

 1501 Farm Credit Drive 

 McLean, Virginia 22102-5090

 

 

 

September 6, 2018

The Honorable Dallas P. Tonsager, Board Chairman 

The Honorable Jeffery S. Hall, Board Member

The Honorable Glen R. Smith, Board Member 

Farm Credit Administration

1501 Farm Credit Drive

McLean, Virginia 22102-5090

 

Dear Board Chairman Tonsager and Board Members Hall and Smith:

The Office of Inspector General (OIG) completed an Information Technology (IT) Benchmarking 

Study. The objective of this evaluation is to compare the Farm Credit Administration’s (FCA or 

Agency) IT budget and use of other IT contractual services to the other federal financial 

regulators. This report does not contain any recommendations or agreed-upon actions.

The first part of the study analyzes the Office of Information Technology (OIT) budget and use of 

contractors over the last three years (2016-2018) and benchmarks the OIT budget against the 

other FCA office budgets. The second part of the study, as outlined in Appendix A, compares 

FCA’s IT budget, including the use of contractors, to the other federal financial regulators for 

fiscal year 2018.

Our benchmarking study reveals that the OIT budget has grown at a much higher percentage 

over the last three years than all other FCA office budgets. The Office of Examination (OE) is 

FCA’s largest office, and OIT is FCA’s second largest office. Although OE has six times the fulltime equivalents (FTEs) than that of OIT, OE’s budget is only three times larger than OIT’s. OE’s 

budget is 90% personnel costs. OIT’s budget is 60% personnel costs and 25% other contractual 

services. In addition, over the last three years, the number of FTEs in OIT has also increased at a 

higher percentage than all other FCA offices. Finally, OIT’s use of contractors has greatly 

increased over the last three years. 

Of the benchmarked federal financial regulators, FCA has the smallest overall agency budget, IT 

budget, and number of employees. However, when compared to the IT budgets of the other 

federal financial regulators, FCA‘s IT budget, as a percentage of the Agency’s budget, falls in the 

middle of the benchmarked agencies, and its use of contractors was the lowest of all the other 

agencies. When reading this study, please keep in mind that the comparisons with the other 
agencies were complicated by the different agency missions driving IT costs and differences in 

items included under each agency’s IT budget. Hence, apple-to-apple comparisons were not 

possible in many cases. 

We appreciate the courtesies and professionalism extended by FCA personnel to the OIG staff. If 

you have any questions about this inspection, Tammy and I would be pleased to meet with you 

at your convenience.

Respectfully,

Wendy R. Laguarda

Inspector General

Enclosure
i 

Objective: 

The objective of this 

evaluation is to 

compare FCA’s IT 

budget and use of 

other IT contractual 

services to the other 

federal financial 

regulators. 

 

Agreed-Upon 

Actions: 

This report contains 

no recommendations 

or agreed-upon 

actions. 

EXECUTIVE SUMMARY

Information technology (IT) spending, including the use of IT contractors, 

has increased at the Farm Credit Administration (FCA or Agency) over the 

past few years. We calculated the levels of increase over the past three 

years (2016-2108) and compared FCA’s IT budget and use of other IT 

contractual services to the other federal financial regulators for fiscal year 

(FY) 2018. The other federal financial regulators we benchmarked against 

included: 1

• Commodity Futures Trading Commission (CFTC) 

• Federal Deposit Insurance Corporation (FDIC) 

• Federal Housing Finance Agency (FHFA) 

• Board of Governors of the Federal Reserve System (FRB) 

• National Credit Union Administration (NCUA) 

• U.S. Securities and Exchange Commission (SEC) 

Our benchmarking study reveals that the Office of Information 

Technology (OIT) budget has grown at a much higher percentage over 

the last three years than all other FCA office budgets. The Office of 

Examination (OE) is FCA’s largest office, and OIT is FCA’s second largest 

office. Although OE has six times the full-time equivalents (FTEs) than 

that of OIT, OE’s budget is only three times larger than OIT’s. OE’s budget 

is 90% personnel costs. OIT’s budget is 60% personnel costs and 25% 

other contractual services. In addition, over the last three years, the 

number of FTEs in OIT has also increased at a higher percentage than all 

other FCA offices. Finally, OIT’s use of contractors has greatly increased 

over the last three years. 

Of the benchmarked federal financial regulators, FCA has the smallest 

overall agency budget, IT budget, and number of employees. However, 

when compared to the IT budgets of the other federal financial 

regulators, FCA‘s IT budget, as a percentage of the Agency’s budget, falls 

in the middle of the benchmarked agencies, and its use of contractors 

was the lowest of all the other agencies. When reading this study, please 

keep in mind that the comparisons with the other agencies were 

complicated by the different agency missions driving IT costs and 

differences in items included under each agency’s IT budget. Hence, 

apple-to-apple comparisons were not possible in many cases. 

 1 We were not able to obtain comparable data from the Office of the Comptroller of the Currency.
ii

FCA’s FY 2018 budget is $71,200,000. OIT is the Agency’s second largest office with a budget of 

$10,214,244. FCA’s budget increased 8% from FY 2016 to FY 2018, while OIT’s budget increased 

20% during the same timeframe.

FCA budgeted for a total of 307 FTEs during FY 2018 which was a 3% increase from FY 2016. 

From FY 2016 to FY 2018, OIT’s FY 2018 budget for FTEs increased 12% from 25 to 28. 

A majority of OIT’s budget is personnel costs. OIT budgeted $6,114,429 for personnel costs 

during FY 2018. The second largest use of OIT’s FY 2018 budget includes $2,511,906 for other 

contractual services, which increased 48% from FY 2016 to FY 2018. Professional service IT 

contractors are a large portion of other contractual services. In recent years, OIT significantly 

increased its use of professional IT contractors to support its staff. 

This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

TABLE OF CONTENTS

EXECUTIVE SUMMARY............................................................................................ i

ACRONYMS.............................................................................................................. 1

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

Purpose of Benchmarking Study ........................................................................................................ 2

FCA Background ....................................................................................................................................... 2

IT Recognized as Top Management Challenge by IG Community......................................... 2

IT Recognized as Top Management Challenge by FCA OIG..................................................... 2

Role of OCFO with Budget.................................................................................................................... 3

Office of Information Technology (OIT) and Information Resources Management (IRM) 

Planning ....................................................................................................................................................... 3

Prior Reviews .............................................................................................................................................. 4

BENCHMARKS......................................................................................................... 5

Comparison of FCA’s OIT Budget to Overall Agency Budget .................................................. 6

FCA and OIT Budget ........................................................................................................................... 6

FCA Budget Trends by Office........................................................................................................... 7

FCA FTEs by Office 2016-2018 ........................................................................................................ 9

FCA OIT Budget by Object Class ..................................................................................................11

Other Contractual Services and Significant Labor Hour Task Orders..................................13

FCA OIT Budget & Use of Other Contractual Services.........................................................13

FCA Contracted for Professional IT Support Services – Labor Hour Task Orders.......14

APPENDIX A: COMPARISON OF FCA’S IT BUDGET TO OTHER FEDERAL 

FINANCIAL REGULATORS ................................................................................... 15

Comparison of FCA’s IT Budget to Other Federal Financial Regulators .............................15

Background of the Federal Financial Regulators....................................................................15

Offices Responsible for IT at the Federal Financial Regulators .........................................17

Comparison of Agency Budget to IT Budget FY 2018..........................................................18

IT Budget $ as a % of Agency Budget........................................................................................19

Cost of IT Budget per Agency FTE ...............................................................................................20

Comparison of IT Budget per Agency FTE and as % of Agency Budget........................21

Comparison of IT Budgets by Object Class ..............................................................................22

Comparison of FCA’s Agency FTEs and IT FTEs to other Federal Financial Regulator 

Agency FTEs and IT FTEs..................................................................................................................24

APPENDIX B: OBJECTIVE, SCOPE, AND METHODOLOGY .............................. 25

APPENDIX C: DEFINITION OF INFORMATION TECHNOLOGY ........................ 27
This report contains sensitive information about FCA and other agencies and must be kept confidential.

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1 

ACRONYMS 

CFTC U.S. Commodity Futures Trading Commission

CIGIE Council of the Inspectors General on Integrity and Efficiency

CEO Board Chairman and Chief Executive Officer

CIGIE Council of the Inspectors General on Integrity and Efficiency

CIO Chief Information Officer

COO Chief Operating Officer

EEOI Office of Equal Employment Opportunity and Inclusion

Farm Credit Act Farm Credit Act of 1971, as amended

Farmer Mac Federal Agricultural Mortgage Corporation

FCA or Agency Farm Credit Administration

FCS Farm Credit System

FDIC Federal Deposit Insurance Corporation

FHFA Federal Housing Finance Agency

FRB Board of Governors of the Federal Reserve System

FTE Full-time Equivalent

FY Fiscal Year

IRM Information Resources Management

IT Information Technology

NCUA National Credit Union Administration

OCFO Office of the Chief Financial Officer

OCPA Office of Congressional and Public Affairs

OE Office of Examination

OGC Office of General Counsel

OIG Office of Inspector General

OIT Office of Information Technology

OMB Office of Management & Budget

OSMO Office of Secondary Market Oversight

SEC U.S. Securities and Exchange Commission
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2 

BACKGROUND 

Purpose of Benchmarking Study 

Information technology (IT) spending, including the use of IT contractors, has increased at the 

Farm Credit Administration (FCA or Agency) over the past few years. The purpose of this 

benchmarking study is to determine the levels of increase over the past three years (2016-2018) 

and compare FCA’s IT budget and use of other IT contractual services to the other federal 

financial regulators for fiscal year (FY) 2018. The other federal financial regulators we 

benchmarked against include:

2

• Commodity Futures Trading Commission (CFTC) 

• Federal Deposit Insurance Corporation (FDIC)

• Federal Housing Finance Agency (FHFA)

• Board of Governors of the Federal Reserve System (FRB) 

• National Credit Union Administration (NCUA)

• U.S. Securities and Exchange Commission (SEC) 

FCA Background 

FCA was created as an independent agency in the executive branch of the U.S. Government by

the Farm Credit Act of 1971, as amended (Farm Credit Act).3 FCA is responsible for regulating 

and examining the Farm Credit System (System) and the Federal Agricultural Mortgage 

Corporation (Farmer Mac). 

FCA ensures that System institutions and Farmer Mac4 operate safely and soundly and comply 

with applicable laws and regulations. 

FCA is funded by the institutions it regulates and examines and does not receive any federal 

appropriation of tax dollars in support of its mission. One of FCA’s guiding principles is to 

operate in a manner that is effective and efficient. FCA strives to balance the costs required to 

operate the Agency against the benefits it provides to stakeholders without compromising on 

safety and soundness. Achieving FCA’s mission depends largely on its people, practices, and 

technology. Managing and securing IT is critical in supporting FCA’s mission. 

IT Recognized as Top Management Challenge by IG Community 

IT Security and Management was one of the most frequently reported challenges identified by 

the Council of the Inspectors General on Integrity and Efficiency (CIGIE) in its report, Top 

Management and Performance Challenges Facing Multiple Federal Agencies. 

IT Recognized as Top Management Challenge by FCA OIG 

The FCA Office of Inspector General (OIG) identified IT as one of four top management 

challenges in FCA’s FY 2017 Performance and Accountability Report (PAR). This challenge is the 

ability to leverage investments in IT while maintaining a secure environment. 

 

2 We were not able to obtain comparable data from the Office of the Comptroller of the Currency. 3 12 U.S.C. 2241,2243

4 Although Farmer Mac is a federally chartered institution of the System, we discuss Farmer Mac and the System as separate entities, 

because Farmer Mac has a unique government-sponsored enterprise (GSE) mission with a significantly different role than that of the 

System's banks and associations. (FCA Strategic Plan p.1 Footnote 1)
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

3 

As identified in the PAR, FCA must protect its IT systems and data from the risks of unauthorized 

access, use, disclosure, disruption, modification, or destruction. 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. 

Role of OCFO with Budget 

FCA’s Office of the Chief Financial Officer (OCFO) supports the Agency mission through 

oversight of FCA’s budget and financial operations. The OCFO oversees the development of the 

Agency’s budget. Office directors prepare their budget submissions and submit them to the 

Chief Operating Officer (COO). The COO and Board Chairman and Chief Executive Officer (CEO) 

meet with senior staff to review and adjust office budgets to ensure the Agency’s budget 

supports the strategic plan and mission of the Agency. The CFO combines each office’s budget 

into a consolidated budget for FCA and obtains concurrence from office directors, the COO, and 

the CEO before presenting the budget to the FCA Board for approval. 

FCA’s budget is not subject to formal review by the Office of Management & Budget (OMB) 

because it is a non-appropriated agency with a no-year revolving fund. However, FCA elects to 

present its budget to an OMB budget analyst for review and consultation. OCFO also prepares a 

detailed budget justification for use by Congress. The CFO stated that, as in past years, 

Congress imposed a cap on FCA’s budget from FY 2016 through FY 2018. 

Office of Information Technology (OIT) and Information Resources Management (IRM) 

Planning 

FCA’s Board approved the formation of the Office of Information Technology (OIT) in May 2015. 

Prior to May 2015, OIT consisted of two teams in the Office of Management Services (OMS). OIT

manages and delivers the Agency's information technology, data analysis infrastructure, and the 

security supporting Agency technology resources. The office is responsible for planning and 

controling IT investments and leading change to improve the efficiency and effectiveness of

Agency operations.5

 

OIT has provided that it conducts quarterly meetings with each FCA office to review IT projects 

and discuss ongoing and future data and technology needs. FCA offices may request proposed 

IRM projects at any time during the year. Such proposed projects are discussed during quarterly 

meetings. These discussions define the priority, urgency, and scope of technology changes and 

begin the budget process to allocate resources needed to implement projects. The Chief 

Information Officer (CIO) evaluates proposed high-level projects for inclusion in upcoming 

budgets and reviews such projects during quarterly meetings. A summary of included projects is 

listed along with their estimated costs and made available to the COO. The COO consults with 

the FCA Board and senior staff to ultimately decide which projects are funded and which are to 

be deferred. 

 

5 FCA Notational Vote May 29, 2015. 
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

4 

Prior Reviews 

The OIG conducted two reviews related to IT spending during the past six years: 

1. FCA’s Mobile Device Cost Controls was issued in July 2015, concluding that FCA used a 

sound approach for selecting a smartphone and wireless communications service provider. 

Additionally, invoices for wireless communications service were reviewed for accuracy prior 

to payment. However, we identified three actions that OIT agreed to implement that 

improved the management of mobile devices. In response to this audit, OIT developed 

internal operating procedures to periodically review the telecommunications plan for 

potential savings. Additionally, OIT educated users and monitored excessive data usage. 

2. Information Technology Equipment Acquisition was issued in August 2012, concluding the IT 

equipment acquisition process was effective in determining the best and most cost-effective 

IT equipment needed for the Agency’s operations. Nevertheless, the OIG identified areas 

where improvements were made to increase transparency, accountability, and efficiency.
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

5 

BENCHMARKS

The objective of this benchmarking study is to compare FCA’s IT budget and use of other IT 

contractual services to the other federal financial regulators. Our benchmarking study reveals: 

• FCA’s OIT budget has grown at a much higher percentage over the last three years than 

all other FCA office budgets. OE is FCA’s largest office and OIT is FCA’s second largest 

office. Although OE has six times the full-time equivalents (FTEs) than that of OIT, OE’s 

budget is only three times larger than OIT’s. OE’s budget is 90% personnel costs. OIT’s 

budget is 60% personnel costs and 25% other contractual services. Over the last three 

years, the number of FTEs in OIT has also increased at a higher percentage than all other 

FCA offices. In addition, OIT’s use of contractors has greatly increased over the last three 

years. 

• FCA’s FY 2018 budget is $71,200,000.

6

 OIT is the Agency’s second largest office with a

budget of $10,214,244. FCA’s budget increased 8% from FY 2016 to FY 2018, while OIT’s

budget increased 20% during the same timeframe.

• FCA budgeted for a total of 307 FTEs during FY 2018 which was a 3% increase from 297

FTEs in FY 2016. From FY 2016 to FY 2018, OIT’s FY 2018 budget increased 12%, from 25

to 28 FTEs. 

• Like other offices at FCA, a majority of OIT’s budget is personnel costs. OIT’s budgeted 

personnel costs are $6,114,429 during FY 2018. The second largest use of OIT’s budget is 

$2,511,906 for other contractual services. OIT’s budget for other contractual services 

increased 48% from FY 2016 to FY 2018. Other contractual services include various items, 

but professional IT contractors are a significant portion of other contractual services. In 

recent years, OIT significantly increased its use of professional IT contractors to support 

its staff. 

• Of the benchmarked federal financial regulators, FCA has the smallest overall agency 

budget, IT budget, and number of employees. However, when compared to the IT 

budgets of the other federal financial regulators, FCA‘s IT budget, as a percentage of the 

Agency’s budget, falls in the middle of the benchmarked agencies, and its use of 

contractors was the lowest of all the other agencies. 

• FCA budgeted a far greater amount of its IT budget on personnel compensation and 

benefits and significantly less on other contractual services than three federal financial 

regulators that provided comparable data. Excluding personnel compensation and 

benefits, the five other federal financial regulators that provided comparable data 

budgeted the highest percent of their IT budget for other contractual services. 

• When reading this study, please keep in mind that the comparisons with the other 

agencies were complicated by the different agency missions driving IT costs and 

differences in items included under each agency’s IT budget.

This report does not contain any recommendations or agreed-upon actions.

 

 

6 FCA final budget data was based on data obtained from OCFO, reflects congressional limitations, and includes reimbursables. 
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

6 

Comparison of FCA’s OIT Budget to Overall Agency Budget 

FCA and OIT Budget 

FCA’s FY 2016 budget was $66,200,000, and the FY 2017 budget was $69,200,000. FCA’s 

Board approved the FY 2018 budget of $73,200,000 on September 6, 2017. However, due 

to a continuing resolution (CR), FCA had a congressional limitation on its budget of 

$69,200,000 from October 1, 2017 through March 22, 2018. When Congress passed the 

omnibus budget ending the FY 2018 CR on March 23, 2018, FCA’s final FY 2018 budget 

was increased to $71,200,000. 

OIT’s FY 2016 budget was $8,502,520, and the FY 2017 budget was $10,738,297.

7 OIT’s 

FY 2018 FCA Board approved budget was $9,948,575. With the CR, OIT’s budget was 

reduced to $8,081,208. OIT continued to operate under this limitation until May 24, 2018. 

After FCA’s budget was increased with the omnibus, OIT’s budget was increased to 

$10,214,244. OIT’s budget represented 12-16% of the total Agency budget from FY 2016

through FY 2018. 

$66,200,000 $69,200,000 

$73,200,000 

$69,200,000 $71,200,000 

$8,502,520 $10,738,297 $9,948,575 $8,081,208 $10,214,244 

13%

16%

14%

12%

14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

 $-

 $10,000,000

 $20,000,000

 $30,000,000

 $40,000,000

 $50,000,000

 $60,000,000

 $70,000,000

 $80,000,000

FY 2016 FY 2017 FY 2018

Before CR

FY 2018 Based

on CR

FY 2018 Final

Budget

FCA and OIT Budget

FY 2016-2018

FCA Budget OIT Budget % of Agency Budget

Exhibit 1

 

7 OIT’s FY 2016 and 2017 budgets reflect reprogramming throughout the year.
This report contains sensitive information about FCA and other agencies and must be kept confidential.

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7 

FCA final budget data was based on data obtained from OCFO, reflects congressional 

limitations, and includes reimbursables8

. Equipment and software are budgeted in a 

single year even if the useful life is longer than one year. OIT’s budget does not include 

systems contracted for financial management, accounting, travel, procurement, 

personnel, payroll, and human resources. OCFO budgets for financial management,

accounting, and travel systems and services. The Office of Agency Services (OAS) 

budgets for procurement, personnel, payroll, and human resource systems. 

FCA Budget Trends by Office 

FCA’s largest office is OE, which has an FY 2018 budget of $33,193,228 and represents 

47% of FCA’s total FY 2018 budget. OIT is FCA’s second largest office with a budget of 

$10,214,244 and represents 14% of FCA’s total FY 2018 budget. 

FCA’s budget increased 8% from FY 2016 to FY 2018. Of all FCA’s offices, OIT’s budget 

increased the most at 20% from FY 2016 to FY 2018. Five other office budgets increased 

greater than 10% from FY 2016 to FY 2018. The Office of Secondary Market Oversight’s 

(OSMO) budget increased 16%. The Office of General Counsel’s (OGC) budget increased 

14%. The Office of Congressional and Public Affairs’ (OCPA) budget increased 14%. The 

Office of Equal Employment Opportunity and Inclusion‘s (EEOI) budget increased 13% 

from FY 2016 to 2018. OIG’s budget increased 10%. The following chart shows each 

office’s budget from FY 2016 through FY 2018. 

 

8

 Reimbursable activities include reimbursable work performed for the Farm Credit System Insurance Corporation (FCSIC), the 

National Consumer Cooperative Bank (NCCB), and the United States Department of Agriculture (USDA).
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

8 

 

Exhibit 29

9 In FY 2016, the OMS included the Finance Team, the Human Resources and Training Team (HRTT), and the Administrative Operations Team (AOT). Due to a reorganization effective October 2016, OMS 

was eliminated and the Finance Team became the OCFO and the HRTT and AOT became known as OAS. (NV 16-08). 
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

9 

FCA FTEs by Office 2016-2018 

FCA budgeted for a total of 297 FTEs for FY 2016; 310 FTEs for FY 2017; and 307 FTEs 

during FY 2018. OE was the largest office at FCA during FY 2018 with 177 FTEs, and OIT 

was the second largest office with 28 FTEs. OIT represented 8-9% of FTEs at FCA from FY 

2016 through FY 2018. 

Budgeted FTEs at FCA increased 3%, or 10 FTEs, from FY 2016 to FY 2018. Most offices 

had no change in FTEs from FY 2016 to 2018. The percentage increase or decrease from 

FY 2016 to FY 2018 in OCPA, OE, OSMO, and OGC was 4% or less. However, FTEs in OIT 

increased 12%, or 3 FTEs, from FY 2016 to FY 2018. The following chart shows the FTEs 

budgeted for each office from FY 2016 through FY 2018.

Exhibit 3
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10

The following pie chart shows the size of each office with greater than 10 FTEs budgeted 

for FY 2018. We note, however, not all FTEs budgeted for an office are actually filled.

10

 

Exhibit 4

10 As of 7/31/2018, FCA’s Deputy Director, OAS, reported a total of 318 FTEs in their payroll system which includes vacancies and 

interns: OIT-31; OE-189; ORP-25; OAS-19; OCFO-8; OGC-14; Board/CEO-15; OCPA-6; OIG-5; OSMO-6.

OE

177 

OIT

28

ORP

27

Offices < 10

19

OAS

20

OGC

14

Board & COO

12 OCFO

10

FCA

FTEs by Office

FY 2018

(does not include contractors)

OE OIT ORP Offices < 10 OAS OGC Board & COO OCFO
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11

FCA OIT Budget by Object Class 

Like all FCA offices, a majority of OIT’s budget is used for personnel compensation and 

benefits. During FY 2018, OIT’s budget for personnel costs is $6,114,429. Other 

contractual services are the second largest use of OIT’s budget at $2,511,906 during FY 

2018. Other contractual services include professional services, IT hardware and software 

operations and maintenance, and training. The third largest item in OIT’s budget during 

FY 2018 is $709,549 for rent, communications, and utilities which includes 

telecommunication service and cable service. The fourth largest item in OIT’s budget 

during FY 2018 is equipment at $472,110. In the past, equipment included servers, 

laptops, network equipment, software, data warehouse consulting, and database 

development. The chart on the next page shows OIT’s budget by object class from FY 

2016 through FY 2018.

This chart represents OIT’s organization chart as of June 12, 2018. It shows the divisions 

under the CIO which include Agency employees and contractors that are used full-time 

and as needed. 

Although OE has six times more FTEs than OIT, OE’s budget is only three times larger 

than OIT’s. OE’s budget is 90% personnel costs. OIT’s budget is 60% personnel costs and 

25% other contractual services. OIT’s budget for other contractual services includes items 

such as: 

• professional IT contractors to support IT security, application development, and 

data warehouse, and 

• operations and maintenance of IT equipment and software. 

(See FCA OIT Budget & Use of Other Contractual Services section for more detail.)
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12

Total Personnel

Compensation

and Benefits

Other Contractual

Services

Rent,

Communications,

Utilities

Equipment Supplies and

Materials

Travel and

Transportation of

Persons

Transportation of

Things

Printing and

reproduction

FY 2016 $4,673,230 $1,701,452 $604,148 $1,354,990 $53,700 $108,300 $5,700 $1,000

FY 2017 $5,438,130 $3,501,188 $658,100 $961,794 $127,450 $50,635 $1,000

FY 2018 Before CR $5,849,807 $2,512,619 $709,549 $490,350 $335,250 $50,000 $1,000

FY 2018 Based on CR $5,658,153 $1,186,906 $709,549 $150,350 $335,250 $40,000 $1,000

FY 2018 Final Budget $6,114,429 $2,511,906 $709,549 $472,110 $335,250 $70,000 $1,000

 $-

 $1,000,000

 $2,000,000

 $3,000,000

 $4,000,000

 $5,000,000

 $6,000,000

FCA OIT Budget 

by Object Class

FY 2016-2018

Exhibit 5 
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Other Contractual Services and Significant Labor Hour Task Orders 

FCA OIT Budget & Use of Other Contractual Services 

OIT budgeted $1,701,452 for other contractual services during FY 2016 and $3,501,188

during FY 2017. In September 2017, the FCA Board approved OIT’s FY 2018 budget 

which included $2,512,619 for other contractual services.11 However, OIT’s budget for 

other contractual services was significantly reduced to $1,186,906 due to FCA’s budget 

limitation in the CR. After FCA’s budget was increased with the omnibus, OIT’s budget for 

other contractual services was increased to $2,511,906. This is a 48% increase from FY 

2016 to FY 2018. Examples of other contractual services include: 

• Professional IT data program support services for data collected from FCS 

institutions and internal administrative data

• IT security and privacy program support services 

• Professional services for a data warehouse solution

• Professional IT support for application system development

• Redesign FCA’s website 

• Operations and maintenance of IT equipment and software 

• IT support 

• Training

 

$8,502,520 

$10,738,297 

$9,948,575 

$8,081,208 

$10,214,244 

$1,701,452 

$3,501,188 

$2,512,619 

$1,186,906 

$2,511,906 

 $-

 $2,000,000

 $4,000,000

 $6,000,000

 $8,000,000

 $10,000,000

 $12,000,000

FY 2016 FY 2017 FY 2018 Before CR FY 2018 Based on CR FY 2018 Final Budget

FCA OIT Budget & 

Use of Other Contractual Services

FY 2016-2018

OIT Budget Other Contractual Services

Exhibit 6 

11 OIT obligated funds for other contractual services during FY 2017, but the funds were anticipated for use by the CIO in FY 2018.
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

14

FCA Contracted for Professional IT Support Services – Labor Hour Task Orders 

A significant portion of OIT’s use of other contractual services includes professional IT 

support services. OIT uses professional IT contractors to support its staff. From FY 2016 

through FY 2018, FCA contracted for professional IT support services that included 

security operations and software planning and development. We limited the scope of 

this analysis to purchase orders for professional IT support services exceeding $100,000 

with labor hour task orders related to consulting and professional services. Purchases for 

software, hardware, maintenance, and training were excluded. During FY 2016 and FY 

2017, OIT obligated funds for significant IT professional support services for five 

contractors. Three of the five contractors represented labor hour task orders, and two of 

the contractors were fixed price contracts. 

There was a significant increase in labor hour task orders from FY 2016 to FY 2017. 

During FY 2016, labor hour task orders totaled 5,654 hours at a cost of $616,388. Labor 

hour task orders increased to $2,034,729 and 15,619 hours during FY 2017. During FY 

2017, $639,078 of the $2,034,729 was actually used for those labor hour task orders and 

the $1,395,651 balance was carried over for use in FY 2018. As of May 31, 2018, OIT’s FY 

2018 Spend Plan did not contain any purchase orders exceeding $100,000 for consulting 

and professional services. However, the CIO clarified that although FCA obligated funds 

for labor hour task orders during FY 2017, the balance of funds not used during FY 2017 

were to be used during FY 2018. If there were any funds not used from these task orders, 

they would be deobligated at the end of FY 2018. 

As of August 1, 2018, OIT reported they had a total of 5 contractors performing IT work 

at FCA. The 5 contractors include a total of 12 contractor staff – 9 full-time and 3 parttime supporting various IT projects, with plans to bring on an additional 10 contractors 

(9 part-time and 1 full-time staff) in the near future.

 

5,654 

15,619 

$616,388 

$2,034,729 

 $-

 $500,000

 $1,000,000

 $1,500,000

 $2,000,000

 $2,500,000

 (4,000)

 1,000

 6,000

 11,000

 16,000

 FY 2016 FY 2017

Labor Hours

FCA Contracted for IT Professional Services 

Labor Hour Task Orders

FY 2016 - 2017

Exhibit 712

12 During FY 2017, $639,078 of the $2,034,729 was actually used for those labor hour task orders and the $1,395,651 balance was 

carried over for use in FY 2018.
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

15

APPENDIX A: COMPARISON OF FCA’S IT BUDGET TO OTHER FEDERAL FINANCIAL REGULATORS

Comparison of FCA’s IT Budget to Other Federal Financial Regulators 

We compared FCA’s FY 2018 IT budget to other federal financial regulators. Most of the 

data provided by other federal financial regulators is not readily available to the public. 

In some cases, our counterparts at the other OIGs assisted us in obtaining the data we 

needed. In other cases, we used Freedom of Information Act requests to obtain data.13

The data provided from CFTC was based on their budget when they were under a CR. 

The data we requested or obtained from other federal financial regulators included:

• Total FY 2018 agency budget

• FY 2018 IT budget broken out by object class 

• Name of office(s) or division(s) that control the IT budget

• Other significant IT expenses (over 5% of IT budget) not included in the CIO’s 

budget that are budgeted by other offices (such as contracted systems 

supporting financial, procurement, human resources, etc.) 

• FY 2018 FTEs 

• FY 2018 IT FTEs 

Due to the sensitivity of the other regulators’ data and our comparison, we redacted 

other agency data in this section of the report.

Background of the Federal Financial Regulators

All of the federal financial regulators in our benchmark study are independent agencies. 

Except for CFTC, which gets an appropriation from Congress, all the other federal 

financial regulators primarily fund operations from non-appropriated sources. The 

mission of each federal financial regulator varies with the types of institutions and 

markets it oversees. Some background information on each benchmarked federal 

financial regulator follows: 

FCA 

FCA is an independent Agency governed by a three-person full-time Board. FCA 

is funded by the institutions it regulates and examines and does not receive any 

federal appropriation of tax dollars. 

Mission: “FCA’s mission is to ensure a safe, sound, and dependable source of 

credit and related services for all creditworthy and eligible persons in agriculture 

and rural America.” 

 

13 We were not able to obtain comparable information from the Office of the Comptroller of the Currency (OCC). We note that, 

unlike the other benchmarked agencies, the OCC is a bureau of the Department of Treasury.
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

16

Commodity Futures Trading Commission (CFTC) 

CFTC is an independent agency that consists of five commissioners. CFTC receives 

an appropriation from Congress. 

Mission: “The mission of the Commodity Futures Trading Commission (CFTC) is to 

foster open, transparent, competitive, and financially sound markets. By working 

to avoid systemic risk, the Commission aims to protect market users and their 

funds, consumers, and the public from fraud, manipulation, and abusive practices 

related to derivatives and other products that are subject to the Commodity 

Exchange Act.”

Federal Deposit Insurance Corporation (FDIC) 

FDIC is an independent agency with a five-member Board of Directors that is 

primarily funded from deposit insurance assessments.

Mission: “The Federal Deposit Insurance Corporation (FDIC) is an independent 

agency created by the Congress to maintain stability and public confidence in the 

nation's financial system by:

• Insuring deposits.

• Examining and supervising financial institutions for safety and 

soundness and consumer protection.

• Making large and complex financial institutions resolvable. and

• Managing receiverships.”

Federal Housing Finance Agency (FHFA)

FHFA is an independent agency funded by annual assessments from its regulated 

entities. FHFA’s Director serves a five-year term and is confirmed by the Senate.

Mission: “Ensure that the housing government sponsored enterprises operate in a 

safe and sound manner so that they serve as a reliable source of liquidity and 

funding for housing finance and community investment.”

Board of Governors of the Federal Reserve System (FRB) 

The FRB is an independent agency with a seven member governing board. The 

FRB primarily receives its funding from the interest on government securities that 

it has acquired through open market operations.

Mission: “The Board's longstanding mission is to foster the stability, integrity, and 

efficiency of the nation's monetary, financial, and payment systems and to 

promote optimal economic performance.”

National Credit Union Administration (NCUA) 

NCUA is an independent agency with a three-member Board. NCUA funds its 

activities through operating fees levied on all federal credit unions and 

reimbursements from the Share Insurance Fund. 
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

17

Mission: “Provide, through regulation and supervision, a safe and sound credit 

union system which promotes confidence in the national system of cooperative 

credit.” 

U.S. Securities and Exchange Commission (SEC) 

The SEC is an independent agency that consists of five presidentially-appointed 

Commissioners. The SEC’s annual appropriation is offset by securities transaction 

fees. 

Mission: “The mission of the SEC is to protect investors, maintain fair, orderly, and 

efficient markets, and facilitate capital formation.” 

Offices Responsible for IT at the Federal Financial Regulators

We identified the offices responsible for IT at the other federal financial regulators. 

Agency Name of IT Office or Division

FCA Office of Information Technology

CFTC Office of Data and Technology

FDIC Division of Information Technology 

Office of the Chief Information Security Officer 

Chief Information Officer Council 

FHFA Office of Technology and Information Management

FRB Division of Information Technology

NCUA Office of Continuity and Security Management 

Office of Chief Information Officer

SEC Office of Information Technology

Exhibit 8
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

18

Comparison of Agency Budget to IT Budget FY 2018

FCA has the smallest FY 2018 total budget of $71,200,000 and IT budget of $10,214,244

of the benchmarked federal financial regulators. We calculated the FY 2018 IT budgets as 

a percentage of total agency budgets for each of the federal financial regulators. The IT 

budgets ranged from 8% to 30% of their respective total agency budgets. FCA’s IT 

budget was 14% which is in the middle of the range. However, mission specific 

requirements that drive IT costs for a specific agency and differences in items included in 

each agency’s IT budget need to be taken into consideration when making a 

comparison.

The following are notable differences in agency IT budgets:

• The analysis contained in this appendix is limited to FY 2018. It is the evaluator’s

understanding that it is common practice throughout the federal government to

budget for equipment and software in a single year even if the useful life is

longer than one year. IT budgets for each of the agencies could vary from year to

year based on the timing of significant IT equipment purchases like laptops,

servers, and network equipment.

• IT budgets do not include compensation and benefits.

Therefore, IT budgets would be greater if personnel costs were 

included.

• IT budget includes the records management function.

•

budget includes an 

additional that is not reflected in other budgets we benchmarked 

against.

• IT budget does not represent all IT spending because some IT functions 

remain decentralized. If IT budget was centralized, IT budget would 

be greater.

Comparison of Agency Budget to IT Budget FY 2018

IT Budget Non-IT Budget Total Agency 

Budget

IT Budget as a % 

of Agency Budget

Total FTEs 

2018

IT FTEs 

2018

% of IT FTE

FCA $ 10,214,244 $ 60,985,756 $ 71,200,000 14% 307 28 9%

Exhibit 9141516

14 personnel data is representative of position (not FTE). 15

16 FTE numbers used for 

the include both federal staff and contractor users.
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Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

19

IT Budget $ as a % of Agency Budget

We calculated the IT budgets as a percentage of the total agency budgets for each of the 

federal financial regulators that provided data. FCA’s OIT budget represented 14% of its 

FY 2018 Agency budget. Other federal financial regulators budgeted between 8% and 

30% for IT. The percent FCA budgeted for IT was within 1% of IT 

budgets. However, mission specific requirements that drive IT costs for a specific agency

and differences in items included in each agency’s IT budget need to be taken into 

consideration when making a comparison. For example, IT budget had the lowest 

percentage, but it did not include personnel costs, which would increase IT 

budget and the IT percentage of its overall budget. IT budget would also be higher 

if it included personnel costs. Additionally, if IT functions were centralized at IT 

budget would be higher. However, IT budget would be less if you removed 

indirect overhead.

 

Exhibit 1017

17
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

20

Cost of IT Budget per Agency FTE 

We calculated the cost of the IT budgets per agency FTEs for the other federal financial 

regulators that provided data. FCA’s IT budget per Agency FTE is $33,271. The cost of IT 

budget per agency FTE for the other federal financial regulators was a low of $25,058 to 

a high of $111,583. FCA’s IT budget per Agency FTE was the third lowest of the other 

federal financial regulators. However, mission specific requirements that drive IT costs for 

a specific agency and differences in items included in each agency’s IT budget need to 

be taken into consideration when making a comparison. For example, IT budget 

had the lowest cost of IT budget per agency FTE at $25,058, but it did not include 

personnel costs which would increase IT budget per agency FTE. IT budget 

per FTE would also be higher if it included personnel costs. Additionally, if IT functions 

were centralized at IT budget per FTE would be higher. However, IT 

budget would be less than $111,583 per FTE if you removed indirect overhead. 

Exhibit 11181920

 

18

19 FTE numbers used for 

the include both federal staff and contractor users. 20 personnel data is representative of position (not FTE).
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

21

Comparison of IT Budget per Agency FTE and as % of Agency Budget 

The chart below displays the comparison of each agency’s IT budget per agency FTE, and 

the IT budgets as a percentage of agency budgets. This chart shows a relationship 

between IT budgets per FTE and as a percentage of the overall agency budgets. 

However, mission specific requirements that drive IT costs for a specific agency and 

differences in items included in each agency’s IT budget need to be taken into

consideration when making a comparison. For example, IT budget had the lowest 

percentage and IT budget per agency FTE, but it did not include personnel costs that 

would increase IT budget. IT budget percent and IT cost per FTE would also 

be higher if it included personnel costs. Additionally, if IT functions were centralized at 

 IT budget would be higher. However, IT budget would be less if you 

removed indirect overhead.

Exhibit 12212223

 

21

22 FTE numbers used for 

the include both federal staff and contractor users. 23 personnel data is representative of position (not FTE).
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

22

Comparison of IT Budgets by Object Class 

We compared FCA’s OIT budget by object class to other federal financial regulators that 

provided comparable data ( ). Of the agencies that included personnel 

compensation and benefits in their IT budget, FCA spends the largest percentage of its IT 

budget on personnel compensation and benefits.24 FCA budgeted 60% of its IT budget 

on personnel compensation and benefits. budgeted between 24 

and 32% of its IT budget on personnel compensation and benefits. FCA’s second largest 

item in its IT budget is other contractual services at 25%. 

budgeted between 51% and 61% of their IT budget for other contractual services. FCA 

budgeted a far greater amount on personnel compensation and benefits and 

significantly less on other contractual services than .

 budgeted significantly more on other contractual services than personnel 

costs. 

Exhibit 1325

 

24 IT budgets do not include personnel costs. Therefore, we were unable to benchmark personnel costs for those 

agencies. so we were unable to benchmark IT budget by object class. 25
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

23

For the next analysis, we identified the three largest budget object classes and compared 

FCA to the other federal financial regulators that provided comparable data (

). We excluded personnel compensation and benefits since some 

agencies did not include it in their IT budgets. Then, we calculated the percent budgeted 

for the three largest budget object classes. 

After excluding personnel costs, the three largest budget object classes were the same 

for each of these agencies: 

1. Other Contractual Services

2. Rent, Communication, Utilities

3. Equipment

All the agencies budgeted the highest percent for other contractual services. FCA 

budgeted the lowest at 61%, and the other federal financial regulators budgeted 

between 64% and 83%. 

Rent, communication, and utilities was 17% of FCA’s IT budget. Other federal financial 

regulators budgeted between 4% and 15% on rent, communication, and utilities. FCA’s IT 

budget for rent, communication, and utilities was the highest amount of the other 

federal financial regulators during FY 2018.

Equipment was 12% of FCA’s IT budget. Other federal financial regulators budgeted 

between 0% and 32% on equipment. FCA was in the middle of this range during FY 2018.

Equipment and software are budgeted in a single year even if the useful life is longer 

than one year. IT budgets for each of the agencies could vary from year to year based on 

the timing of significant IT equipment purchases like laptops, servers, and network 

equipment.

61%

17%

12%

73%

10%

17%

83%

7% 9%

71%

14% 14%

74%

15%

0%

64%

4%

32%

0%

20%

40%

60%

80%

Other Contractual Services Rent, Communication, Utilities Equipment

% of IT Budget

Comparison of IT Budgets by Object Class 

Three Largest Object Classes

FY 2018

(excludes personnel costs)

FCA

Exhibit 1426

 

26
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix A: Comparison of FCA’s IT Budget to Other Federal Financial Regulators

24

Comparison of FCA’s Agency FTEs and IT FTEs to other Federal Financial 

Regulator Agency FTEs and IT FTEs 

We compared the number of agency FTEs and IT FTEs at FCA to the benchmarked 

federal financial regulators. FCA had the smallest number of agency FTEs (307) and IT 

FTEs (28) during FY 2018. 

We calculated the IT FTEs as a percentage of agency FTEs for FY 2018 for each of the 

federal financial regulators. IT FTEs as a percent of agency FTEs ranged from 4% to 15% 

of their respective agency. FCA was in the middle of the range with IT FTEs at 9% of total 

agency FTEs.27 

Comparison of Agency FTEs to IT FTEs FY 2018

AGENCY TOTAL 

FTEs 

IT FTEs % OF 

IT FTEs 

4%

5%

8%

FCA 307 28 9%

12%

13%

15%

Exhibit 152829

The following graph is a visual representation of IT FTEs as a percent of agency FTEs for 

FCA and the benchmarked financial regulators. 

Exhibit 163031

27 This comparison is limited to agency employees and does not reflect contractor support with the exception of FDIC. 

include both federal staff and contractor users. 28

29 personnel data is representative of position (not FTE). 30

31 personnel data is representative of position (not FTE).

 FTE numbers used for the
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix B: Objective, Scope, and Methodology

25

APPENDIX B: OBJECTIVE, SCOPE, AND METHODOLOGY

The objective of this evaluation was to compare FCA’s IT budget and use of other IT contractual 

services to other federal financial regulators. The scope of this evaluation included FCA and FCA 

IT budgets from FY 2016 through FY 2018 and FY 2018 agency and IT budgets of the 

benchmarked federal financial regulators. 

FCA’s FY 2018 IT budget and use of other IT contractual services was compared to data obtained 

from other federal financial regulators including:

32 

• CFTC

• FDIC

• FHFA

• FRB 

• NCUA

• SEC

We performed the following steps to accomplish the evaluation objective: 

• Identified and reviewed related laws, regulations, and OMB guidance;

• Identified and reviewed related Agency policies and procedures; 

• Reviewed prior audits and inspections related to the evaluation objective;

• Conducted interviews with FCA’s CIO, CFO, and staff from OIT and OCFO; 

• Communicated with other federal financial regulators; 

• Obtained and analyzed agency and IT budgets from FCA and other federal financial 

regulators; 

• Benchmarked and compared how much FCA budgeted for IT as a percentage of the 

overall Agency budget;

• Compared FCA’s IT budget to other federal financial regulators;

• Compared FCA’s IT staffing to other federal financial regulators;

• Compared FCA’s use of other IT contractual services to other federal financial regulators; 

• Considered significant internal control processes; and 

• Considered the possibility of fraud, other illegal acts, waste and abuse related to the 

objective. 

We conducted this evaluation in accordance with CIGIE’s Quality Standards for Inspection and 

Evaluation. Those standards require that we plan and perform the evaluation to obtain sufficient, 

competent and relevant evidence that supports a reasonable basis for our findings, conclusions 

and recommendations. Overall, we believe the evidence obtained is sufficient to provide a 

reasonable basis for our findings and conclusions based on the evaluation objective. 

 

32 We were not able to obtain comparable information from the Office of the Comptroller of the Currency. 
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix B: Objective, Scope, and Methodology

26

We reviewed internal controls identified as significant to the objective and did not identify any 

material control weaknesses. Because our review was limited, it would not necessarily have 

disclosed all internal control deficiencies that may have existed at the time of our evaluation.

To address our objectives, we relied on computer-processed data such as budget reports 

provided by FCA’s OCFO and Spend Plans provided by OIT. We did not test the systems that 

generated these reports since that was not our objective. However, we assessed the reliability of 

FCA’s computer-processed data and determined it was sufficiently reliable and valid for use in 

meeting our objective.

Additionally, we obtained data directly from other federal financial regulators and did not 

perform any additional testing to determine its reliability. However, each other regulator 

reviewed and confirmed the accuracy of their data as described in this evaluation.

We assessed the risk of fraud and abuse related to our evaluation objective while evaluating 

evidence. Nothing came to our attention during the evaluation to indicate fraud or abuse was 

occurring. 

This evaluation was performed at FCA headquarters in McLean, Virginia, from December 2017 

through August 2018. At the end of this evaluation, we provided management with a draft 

report of our observations and held an exit conference on August 8, 2018. We also provided the 

other federal financial regulators with a redacted copy of the draft report with their data visible 

so they could ensure the accuracy of our representation of their data. 
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

Appendix B: Objective, Scope, and Methodology

27

APPENDIX C: DEFINITION OF INFORMATION TECHNOLOGY

Information technology is defined by Office of Management & Budget (OMB) in M-15-14 and 

includes: 

A. “Any services or equipment, or interconnected system(s) or subsystem(s) of equipment, 

that are used in the automatic acquisition, storage, analysis, evaluation, manipulation, 

management, movement, control, display, switching, interchange, transmission, or 

reception of data or information by the agency; where 

B. such services or equipment are ' used by an agency' if used by the agency directly or if 

used by a contractor under a contract with the agency that requires either use of the 

services or equipment or requires use of the services or equipment to a significant extent 

in the performance of a service or the furnishing of a product. 

C. The term " information technology" includes computers, ancillary equipment (including 

imaging peripherals, input, output, and storage devices necessary for security and 

surveillance), peripheral equipment designed to be controlled by the central processing 

unit of a computer, software, firmware and similar procedures, services (including 

provisioned services such as cloud computing and support services that support any 

point of the lifecycle of the equipment or service), and related resources. 

D. The term " information technology" does not include any equipment that is acquired by 

a contractor incidental to a contract that does not require use of the equipment.”33

Information technology resources are also defined by OMB in M-15-14 and includes: 

A. “Agency budgetary resources, personnel, equipment, facilities, or services that are 

primarily used in the management, operation, acquisition, disposition, transformation, or 

other activity related to the lifecycle of information technology; 

B. Acquisitions or interagency agreements that include information technology and the 

services or equipment provided by such acquisitions or interagency agreement; but

C. Does not include grants to third parties which establish or support information 

technology not operated directly by the Federal Government.”34 

 

33 https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2015/m-15-14.pdf 34 https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2015/m-15-14.pdf
This report contains sensitive information about FCA and other agencies and must be kept confidential.

Do not distribute this report without the express permission of the Inspector General.

FARM CREDIT ADMINISTRATION

OFFICE OF INSPECTOR GENERAL

Report Fraud, Waste, Abuse, Mismanagement

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