Farm Credit Administration 

Office of Inspector General 

Audit, Inspection, and Evaluation Plan 

Fiscal Years 2021-2022 
AUDIT, INSPECTION, AND EVALUATION PLAN
 

The Office of Inspector General (OIG) is tasked with providing independent and objective oversight of the Farm 

Credit Administration (FCA or Agency) and keeping the FCA Board and Congress fully and completely informed

as to problems and deficiencies relating to FCA programs and operations. Pursuant to its responsibilities, the OIG 

performs audits, inspections, and evaluations to ensure that FCA programs are administered effectively and with 

appropriate controls, and to identify opportunities for improvement. 

Below are audit, inspection, and evaluation activities planned for Fiscal Years 2021 and 2022. This plan was

formulated using a risk-based approach, considering prior oversight work, the control environment, input from

the FCA Board and senior management, statutory requirements, and resource allocations and prioritizations. The 

planned activities may be adjusted in response to changing needs or circumstances. 

REQUIRED ANNUAL REVIEWS 

FCA’s Financial Statements Audit 

The Accountability of Tax Dollars Act of 2002 requires executive agencies not covered by the Chief Financial 

Officers Act to obtain annual audits in accordance with generally accepted government auditing standards. The 

OIG contracts with an independent accounting firm to audit FCA’s financial statements, internal control over 

financial reporting, and compliance with laws and regulations relating to the determination of financial statement 

amounts. The OIG will transmit the audit firm’s opinion to the Agency. The OIG will ensure that the independent 

accounting firm incorporates an appropriate audit scope and deliverables within appropriate timeframes. This 

audit is currently conducted by the audit firm of Harper, Rains, Knight & Company. 

Federal Information Security Modernization Act (FISMA)

FISMA requires Inspectors General to conduct an annual evaluation of their respective agency’s information 

security program and report the results to the Office of Management and Budget (OMB) and the Department of

Homeland Security (DHS). The objective of this evaluation is to conduct an independent evaluation of FCA’s 

information security program using the metrics identified by DHS to determine the effectiveness of the

information security program and practices. The OIG may contract with an independent accounting firm to 

conduct FCA’s FISMA evaluation. If a contractor is used, the OIG monitors the audit firm and transmits the firm’s 

evaluation to the Agency. This audit is currently conducted by the audit firm of Williams Adley & Company. 

PLANNED AUDIT, INSPECTION, AND EVALUATION ACTIVITIES 

Audits 

FCA’s Contracting Process

FCA’s contracting program has moved to the Office of the Chief Financial Officer. The goal of the program is to 

acquire products and services that meet program needs and are the best value to the Agency in a timely and 

effective manner. As a non-appropriated fund agency, FCA’s procurement policies are set forth in Policy and 

Procedures Manual 812 Contracting/Procurement Policy and the Agency’s Contracts Desk Manual. The objective 

of this audit is to determine whether FCA’s contracting process is efficient and effective. 

FCA’s Enterprise Risk Management Capability and Internal Control Program

Federal managers should effectively manage risks that the Agency faces in achieving strategic objectives and 

that arise from its activities and operations. In July 2016, OMB issued a revised Circular A-123 to modernize 

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existing efforts to improve accountability in Federal programs and operations by requiring the implementation 

of an Enterprise Risk Management (ERM) capability. The objective of this audit is to determine the Agency’s

progress toward an ERM capability and whether the Agency has established an adequate internal control 

program. 

Agency-wide Training Initiatives

There are multiple agency-wide training requirements for areas such as computer security, continuity of 

operations, equal employment opportunity and diversity, and antiharassment. The Agency also has an extensive 

examiner commissioning program. The objective of this audit is to determine whether the Agency is adequately 

coordinating and utilizing resources to deliver efficient and effective training. 

OSMO Examination Guidance 

FCA established the Office of Secondary Market Oversight (OSMO) to manage regulation, supervision, and 

examination of the Federal Agricultural Mortgage Corporation (Farmer Mac). OSMO is required to examine 

Farmer Mac at last once per year. The objective of this audit is to evaluate OSMO’s examination policies, 

procedures, and guidance. 

FCA’s Office of Data Analytics and Economics

With the goal of moving further toward a more objective data-driven approach to policy making, the FCA Board 

approved the creation of the Office of Data Analytics and Economics (ODAE) in November 2019. ODAE is primarily 

responsible for facilitating an agency-wide strategy for analytics and providing economic analysis services to 

support the FCA Board and offices regarding their decision making and regulatory activities. The ODAE was also 

created to support the Foundations for Evidence-Based Policymaking Act of 2018 (signed into law on January 

14, 2019). The objective of this audit is to evaluate ODAE’s organizational structure, goals, and objectives in 

achieving the Agency’s mission. 

Inspections and Evaluations 

Property Management

FCA has a property management program to ensure integrity, accuracy, and effective, timely accountability of 

property as it moves through the lifecycle. The objective of this inspection is to determine whether FCA is 

adhering to the property management policies and procedures. 

Lessons Learned in Pandemic Response

On March 16, 2020, FCA directed most of its workforce to telework, suspended all onsite examinations, restricted 

business travel, and canceled in-person training. Since then, FCA has implemented numerous changes to enable 

the Agency to continue operations while protecting the health and safety of its employees at headquarters and 

in field offices. The objective of this evaluation is to determine the effectiveness of FCA programs enacted in 

response to the COVID-19 pandemic. 

Examination Staff Scheduling and Rotation

FCA is required to examine each FCS institution at such times as the FCA Board determines, but no less than 

every 18 months. Rotating examiners is an important element of FCA’s arms-length role to ensure oversight work 

is fair, impartial, and independent. Staff rotation also supports the consistent application of requirements across 

institutions and provides valuable learning opportunities. The objective of this inspection is to identify and 

evaluate FCA’s process for scheduling and rotating FCA examination staff. 

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Office of Examination Recruiting

Each year, the Office of Examination expends resources to recruit new talent for FCA’s examination staff. The 

objective of this inspection is to determine whether FCA is allocating appropriate resources to, and analyzing 

results of, its recruiting efforts. 

Records Management

FCA is responsible for creating, maintaining, preserving, and disposing of records in accordance with applicable 

laws and regulations. In May 2020, FCA transitioned responsibilities for records management to its Office of 

Information Technology (OIT) with the Director of OIT designated as the Senior Agency Official for the Agency 

Records Program. The records official has responsibility for ensuring FCA efficiently and appropriately complies 

with applicable records management statutes, regulations, and National Archives and Records Administration 

policy and requirements. The objective of this inspection is to determine whether FCA has a comprehensive 

records management program that complies with applicable requirements. 

Similar Entity Lending Oversight Process

The Farm Credit Act allows System institutions to participate in similar entity lending to provide institutions and 

non-system lenders with a tool to manage risk. In 2016, FCA issued a bookletter describing safeguards to help 

System institutions ensure compliance with similar entity lending laws and regulations. The objective of this 

inspection is to evaluate the Agency’s oversight of similar entity lending in the System. 

Peer Reviews 

Peer Review of FCA OIG Audit Operations

Government Auditing Standards require audit organizations that perform audits or attestation engagements to 

undergo an external peer review every three years. The Federal Trade Commission OIG is scheduled to conduct 

FCA OIG’s external peer review starting in April 2022. The review will cover our system of quality control for the 

audit organization. 

FCA OIG Peer Review of Corporation for Public Broadcasting OIG Inspection and Evaluation Operations

The Council of the Inspectors General on Integrity and Efficiency Quality Standards for Inspections and 

Evaluations (Blue Book) requires an external peer review of inspection and evaluation organizations every three 

years. The OIG staff is scheduled to conduct the Corporation for Public Broadcasting OIG’s external inspection 

and evaluation peer review beginning October 2021. 

Peer Review of FCA OIG Inspection and Evaluation Operations 

The Securities and Exchange Commission OIG is scheduled to conduct FCA OIG’s external peer review starting in 

April 2022. The review will cover our inspection and evaluation organization’s compliance with Blue Book 

standards. 

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Credit Administration 

Office of Inspector General 

REPORT FRAUD, WASTE, ABUSE, &
 

MISMANAGEMENT 

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

(703) 883-4316 

Fax: (703) 883-4059 

Email: fca-ig-hotline@rcn.com 

Mail: 1501 Farm Credit Drive 

McLean, VA 22102-5090 

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

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