Farm Credit Administration 

Office of Inspector General

Audit, Inspection, and Evaluation Plan 

Fiscal Years 2023-2024 
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, 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 2023 and 2024. This plan was 

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

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

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

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. OIG may contract with an independent accounting firm to conduct 

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

to the Agency. 

Payment Integrity Information Act (PIIA) Inspection 

PIIA requires Inspectors General to conduct an annual evaluation of their respective agency’s efforts to prevent 

and reduce improper payments. The review includes determining whether the Agency is publishing improper 

payments information in the annual financial statement and conducting program-specific risk assessments to 

identify those susceptible to improper payments. The objective of this evaluation is to determine whether FCA 

has met all applicable requirements of the PIIA and evaluate efforts to prevent and reduce improper payments.

PLANNED AUDIT, INSPECTION, AND EVALUATION ACTIVITIES

Audits

FCA’s Office of Data Analytics and Economics (ODAE)

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

approved the creation of 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. ODAE was also created to support the Foundations for Evidence1 | Page
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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, objectives, and responsibilities in achieving the Agency’s mission.

FCA’s Policy and Regulation Development Process

At the direction of the FCA board, FCA’s Office of Regulatory Policy manages policy and regulation development 

activities that aim to ensure the safety and soundness of the Farm Credit System (FCS or System). FCA’s policy 

and regulation development activities include the analysis of policy and strategic risks. The objective of this audit 

is to determine whether the regulation and policy development process is operating efficiently and complies 

with applicable Agency policy and Federal requirements.

Controls over Payroll, Compensation, and Benefits

FCA’s Office of Agency Services (OAS) manages the payroll, compensation, and benefits programs for employees.

OAS works with contractors that provide financial management and payroll administration services. The objective 

of this audit is to determine whether there are adequate controls over the payroll, compensation, and benefit 

programs. 

FCA’s Contracting Process

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

to acquire products and services that meet program needs and provide 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. 

Agency-wide Learning Initiatives 

The Agency has a learning and organizational change team responsible for leadership development, learning, 

education, and training at the Agency. 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 for learning initiatives. 

FCA’s Information Technology (IT) Asset Acquisition Process

In order to perform the mission, Agency personnel need IT assets. The Agency refreshes IT assets, such as mobile 

devices, laptops, and tablets on a periodic basis. The objective of this audit is to determine whether FCA’s process 

for IT acquisitions is adequately planned and implemented. 

Inspections and Evaluations

Merger Review Process

Under the Farm Credit Act of 1971, as amended, FCA is authorized to approve mergers between FCS institutions. 

There are multiple offices principally involved in reviewing merger activity. These offices have seen turnover in 

management, staff, and reorganization. In addition, merger activity has greatly increased within the System. The 

objective of this inspection is to determine whether FCA has an effective and efficient process to review merger 

activity. 

Similar Entity Lending Oversight Process

The Farm Credit Act allows FCS institutions to participate in similar entity lending to provide institutions and nonSystem lenders with a tool to manage risk. In 2016, FCA issued a bookletter describing safeguards to help FCS
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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 FCS. 

Review of Enhanced Personnel Security Program

5 U.S.C. § 11001 requires Inspectors General, beginning two years after implementation of an enhanced personnel 

security program, to conduct a review to assess the effectiveness and fairness to individuals who have been 

determined eligible for access to classified information or eligible to hold a sensitive position. Assessments are

made in accordance with performance measures and standards to be established by the Director of National 

Intelligence. The objective of this inspection is to determine whether FCA has adequately implemented an 

enhanced personnel security program in accordance with applicable guidelines.

Peer Reviews

FCA OIG Peer Review of Capitol Police OIG Audit Operations

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

undergo an external peer review every three years. OIG staff is scheduled to conduct the Capitol Police OIG’s 

external audit peer review beginning October 2022. 

FCA OIG Peer Review of Election Assistance Commission OIG Audit Operations

OIG staff is scheduled to conduct the Election Assistance Commission OIG’s external audit peer review beginning 

April 2024. 
REPORT FRAUD, WASTE, ABUSE, &

MISMANAGEMENT: 

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

(703) 883-4316

Email: fca-ig-hotline@rcn.com

Mail: 1501 Farm Credit Drive

McLean, VA 22102-5090 

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

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