Semi-Annual Report on 

Office of Examination 

Operations

December 14, 2023

Dan Fennewald, Deputy Director 

Office of Examination

FCA Board Meeting 

December 2023 Tab 3

1
OE Operations Agenda Topics

▶ Fiscal Year 2023 Operating Plan Objectives

• Risk Supervision and Examination Activities 

• Public Mission

• Operational Efficiency and Effectiveness

• Human Capital

2
Risk Supervision & Examination

▶ Conducted onsite examination and/or oversight 

activities at all funding banks, 51 associations (74%), 

and 5 other entities

▶ Issued 48 reports of examination, 39 interim activity 

letters, and 70 FIRS Letters

▶ Maintained a higher level of supervisory oversight at 

four System institutions

▶ Issued examination guidance

3
Risk Supervision & Examination (continued)

▶ National Oversight Plan Focus Areas

• Risk management practices in an uncertain environment

• Phaseout of the London Interbank Offered Rate

• Current Expected Credit Losses (CECL) implementation

• Standards of Conduct

▶ Completed all 5 systemic risk strategies and 5 institution 

risk strategies

4
Public Mission

▶ Completed all public mission strategies

• Implemented the qualitative portion of the Young, Beginning, 

and Small Farmers (YBS) Programs rating system 

• Worked with ODAE and Systems institutions to improve YBS 

data quality

• Issued a memo clarifying our expectations for internal audit 

programs at certain low-risk institutions

• Provided additional guidance to examiners on differential 

expectations for smaller associations with a lower risk profile

• Met with System's Small Association workgroup 5
Operational Efficiency and Effectiveness

▶ Completed all strategies related to examination tools, 

operational processes, and the FCS Loan Database

• Made enhancements to the EDGe application and reports

• Continued the transition to PowerBI generated reports

• Developed the Risk Control Matrix for OE OMB A-123 audits

• Continued to assess and improve data reliability and develop 

new reports

6
Human Capital

▶ Completed all strategies related to training, 

development, recruitment, retention, and knowledge 

transfer

• Hired 15 associate examiners, 3 external commissioned 

examiners, 6 technical specialists, and 1 administrative assistant

• Attrition levels declined to 8 percent compared to 17 percent 

last year

• OE Conference held in August 2023

7
Human Capital (continued)

▶ We remain below optimal targets for total staff and 

commissioned examiners

Total OE Staff

Total OE Staff Planned Actual Variance

Beginning FY 2023 179 173 (6)

Attrition | Retirements (15) (13) 2

Hirings 16 25 9

Ending FY 2023 180 185 5 

Commissioned Examiners

Commissioned Examiners Planned Actual Variance

Beginning FY 2023 87 84 (3)

Attrition | Retirements (7) (8) (1)

Hirings 2 3 1 

Newly Commissioned 7 2 (5)

Ending FY 2023 89 81 (8)

8
OE Budget Results

▶ Fiscal Year 2023

• Actual expenses were in line with net budget with return to 

normalized travel after the first quarter

• Full Time Equivalents (FTEs) slightly under budget

FTEs

♦ Budgeted Full Year FTEs 177.8

♦ Actual Full Year FTEs 177.2

Budget Variance -0.6 

9

$36.6 $36.6 

Budget Actual

Fiscal Year 2023 

Actual OE 

spending 

within 

Operating 

Budget 

($ millions)
Summary

▶ Effectively conducted examination and oversight 

activities

▶ Completed 2023 Operating Plan objectives

▶ Focused on ensuring OE has sufficient highly skilled 

staff to accomplish our mission

▶ Actively managed our budget as we returned to 

normalized travel

10
Discussion

THANK YOU

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