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OFFICE OF INSPECTOR GENERAL 

September 13, 2019 

Ms. Wendy R. Laguarda, Inspector General 

Farm Credit Administration 

Office of Inspector General 

1501 Farm Credit Drive 

McLean, VA 22102

Subject: External Peer Review on the Farm Credit Administration Office of Inspector 

General Audit Organization 

Dear Ms. Laguarda, 

Attached is the External Peer Review Report on the Farm Credit Administration (FCA) Office 

of Inspector General (OIG) audit organization. We conducted the external peer review in 

accordance with Government Auditing Standards and the Council of the Inspectors General 

on Integrity and Efficiency Guide for Conducting Peer Reviews of the Audit Organizations of 

Federal Offices of Inspector General. 

We have included your response to our draft report as Enclosure 2.

We appreciate the cooperation and courtesies extended by you and your staff during the 

review. 

Laura Davis 

Inspector General 

Attachment 

) 

Constitution Center, 400 7

ti1 Street, SW; Washington, D.C. 20506 •, 202.606.8350 , 202.606.8329 www.neh.gov/about/oig 

OIG Hotline: (877) 786-7598 
September 13, 2019 

Ms. Wendy R. Laguarda, Inspector General 

Farm Credit Administration 

Office of Inspector General 

1501 Farm Credit Drive 

McLean, VA 22102 

Dear Ms. Laguarda, 

We have reviewed the system of quality control for the audit organization of Farm Credit 

Administration (FCA) Office of Inspector General (OIG) in effect for the year ended March 

31, 2019. A system of quality control encompasses FCA OIG's organizational structure and 

the policies adopted and procedures established to provide it with reasonable assurance of 

conforming with Government Auditing Standards. The elements of quality control are 

described in Government Auditing Standards. The FCA OIG is responsible for establishing 

and maintaining a system of quality control that is designed to provide the FCA OIG with 

reasonable assurance that the organization and its personnel comply with professional 

standards and applicable legal and regulatory requirements in all material respects. Our 

responsibility is to express an opinion on the design of the system of quality control and FCA 

OIG's compliance therewith based on our review. 

Our review was conducted in accordance with Government Auditing Standards and the 

Council of the Inspectors General on Integrity and Efficiency (CIGIE) Guide for Conducting 

Peer Reviews of the Audit Organizations of Federal Offices of Inspector General. During our 

review, we interviewed FCA OIG personnel and obtained an understanding of the nature of 

the FCA OIG audit organization, and the design of FCA OIG's system of quality control 

sufficient to assess the risks implicit in its audit function. Based on our assessments, we 

selected audits and administrative files to test for conformity with professional standards and 

compliance with FCA OIG's system of quality control. The audits selected represented a 

reasonable cross-section of the FCA OIG audit organization, with emphasis on higher-risk 

audits. Prior to concluding the peer review, we reassessed the adequacy of the scope of the 

peer review procedures and met with FCA OIG management to discuss the results of our 

review. We believe that the procedures we performed provide a reasonable basis for our 

opinion. 

In performing our review, we obtained an understanding of the system of quality control for 

the FCA OIG audit organization. In addition, we tested compliance with the FCA OIG's 

quality control policies and procedures to the extent we considered appropriate. These tests 

covered the application of the FCA OIG's policies and procedures on selected audits. Our 

review was based on selected tests; therefore, it would not necessarily detect all weaknesses 

in the system of quality control or all instances of noncompliance with it. 

There are inherent limitations in the effectiveness of any system of quality control, and, 

therefore, noncompliance with the system of quality control may occur and not be detected. 

Constitution Center, 400 7tti Street, SW; Washington, D.C. 20506 202.606.8350 202.606.8329 www.neh.gov/about/oig 

OIG Hotline: (877) 786-7598 
effect for the year ended March 31, 2019, has been suitably designed and complied with to 

provide FCA OIG with reasonable assurance of performing and reporting in conformity with 

applicable professional standards in all material respects. Audit organizations can receive a 

rating of pass, pass with deficiencies, or fail. The FCA OIG has received an External Peer 

Review rating of pass. 

In addition to reviewing its system of quality control to ensure adherence with Government 

Auditing Standards, we applied certain limited procedures in accordance with guidance 

established by the CIGIE related to FCA OIG's monitoring of audits performed by 

independent public accountants (IPAs) under contract where the IPA served as the principal 

auditor. It should be noted that monitoring of audits performed by IPAs is not an audit and, 

therefore, is not subject to the requirements of Government Auditing Standards. The 

purpose of our limited procedures was to determine whether the FCA OIG had controls to 

ensure IP As performed contracted work in accordance with professional standards. 

However, our objective was not to express an opinion and accordingly, we do not express an 

opinion, on FCA OIG's monitoring of work performed by IP As. 

Laura Davis 

Inspector General 

Enclosures 
p

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y 

performed by FCA OIG. 

In addition, we reviewed the FCA OIG's monitoring of audits performed by IPAs where the IPA served as the principal auditor during the period October 1, 2017 through March 31, 

2019. During this period, the FCA OIG contracted for the audits of its agency's fiscal year 

2017 and fiscal year 2018 financial statements, and an audit of its agency's compliance with 

the Federal Information Security Modernization Act of 2014 (FISMA). 

We visited the FCA OIG office located in McLean, VA. 

Reviewed Audits Performed by FCA OIG: 

Report Date Report Title 

September 28, 2016 The Farm Credit Administration's Oversight of Young, Beginning, 

and Small Farmer Programs 

May 22, 2017 The Farm Credit Administration's Contracting Activities 

Reviewed Monitoring Files of FCA OIG for Contracted Audits: 

Report Date Report Title 

November 15, 2018 Audit of the Farm Credit Administration's Financial Statements -

Fiscal Year 2018 
Enclosure 2

PCAOIG 

F;u-m Credit Administration 

Office of Inspector General 

September 4, 2019 

Laura Davis 

Inspector General 

National Endowment of the Humanities 

400 J

lh Street, SW 

Washington, DC 20506 

Dear Inspector General Davis: 

I have reviewed your draft report on the system of quality control for the audit organization of 

the Farm Credit Administration Office of Inspector General in effect for the year ended March 31, 

2019. We are pleased to have received a peer review rating of Pass. A pass rating is the highest 

rating that can be issued. This rating is issued when the review team concludes that the system of 

quality control has been suitably designed and complied with to provide the organization with 

reasonable assurance of performing and reporting in conformity with applicable professional 

standards in all material respects. 

We appreciate the work that went into the review and the professionalism and effort given to our 

office. We have no further comments on the draft report. 

Sincerely, 

Wendy R. Laguarda 

Inspector General 

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