OFFICE OF 

INSPECTOR GENERAL 

The Farm Credit AdministraƟon's 

Travel Card Program 

I‐17‐02 

InspecƟon Report 

Inspector 

Sonya Cerne 

Issued January 31, 2017 

FARM CREDIT ADMINISTRATION 
considered closed. 

The Farm Credit Administration (FCA or Agency) is an independent Federal agency responsible 

for regulating, examining, and supervising the Farm Credit System and the Federal Agricultural 

Mortgage Corporation. In order to meet mission requirements, FCA’s employees are sent on 

official travel. FCA participates in the government‐wide General Services Administration’s (GSA) 

SmartPay Travel Card Program and currently contracts with the Bureau of the Fiscal Service (BFS) 

for travel administration and services. FCA is included under an issued contract with Citibank for

charge cards. FCA’s Office of Agency Services (OAS) is responsible for the overall administration 

of the travel card program at FCA. 

The objective of this inspection was to determine if FCA’s oversight of the travel card program 

was effective. We found FCA’s oversight is generally effective. FCA established and implemented 

controls over the travel card program. For example, FCA established: 

	 A process for travel card certifications and recertifications. We randomly sampled 

employees to verify certifications were completed within the last three years. All of the 

sampled employees had certifications on file.   

	 Travel card limits and a methodology to restrict accounts. We found no cardholders had 

a limit above the standard and when appropriate, the Agency lowered limits on 

restricted cards. 

	 A process to ensure travel charges are appropriate and related to official travel. OAS 

performs monthly audits on travel transactions. An OAS official reviews 10 percent of 

randomly selected employees’ travel transactions each month looking for misuse, cash 

withdrawals, and verification of authorizations.  

	 A new Operations Handbook for both travel and purchase cards. This handbook is a

detailed step‐by‐step guide on how OAS completed reviews and documents controls 

over the program.   

Although it is generally effective, there are opportunities to further improve the travel card 

program. 

	 We identified 33 exceptions of the 585 transactions judgmentally sampled (5.6 percent):

o	 16 transactions by two individuals (2.7% of the sample) showing misuse of the

travel card. In both instances, FCA discovered the misuse during internal

reviews and individuals received disciplinary actions prior to our review; 

o	 Six transactions (1% of the sample) were identified as erroneous charges. The 

three individuals involved indicated the charges were inaccurate or from 

potentially stolen card numbers. However, they did not file a dispute with the 

credit card company; and, 

o	 11 transactions (1.9 % of the sample) lacked receipts in the travel system, 

lacked approvals per Agency policy, or the support and reasoning of official 

travel was not included in the file. 

 Employees had not always made timely payments for travel card expenses; and,  

 Two employees were listed as active FCA cardholders even though they were previously 

separated.

Through increased education to cardholders and documented processes for review, the travel 

card program could be further improved to reduce delinquencies and potential misuse of the

travel card and increase the effectiveness of controls.

AGREED‐UPON ACTIONS: 

In order to improve the travel card 

program, the Agency agreed to:

1. Provide education to 

cardholders on misuse of 

the government charge 

card, proper cash advances, 

delinquencies, potential 

disciplinary actions, the 

importance of reviewing 

statements for accuracy of 

charges, and the dispute 

process. 

2. Follow up on previous audit 

recommendations and 

agreed‐upon actions by 

implementing, and 

including in the Charge Card 

Management Plan and/or

Operational Handbook for 

Travel Card Operations, a

process to: 

 request and reconcile all 

active FCA travel 

cardholders with BFS on 

a quarterly basis to 

ensure proper closures; 

and,

 provide annual

education to travel 

cardholders on Agency 

policies and areas of 

improvement found

during internal reviews.

OAS provided an article to be 

published in the Agency 

newsletter on the travel card. 

Educational materials were also 

provided that will be uploaded to 

the internal travel site covering 

the areas found during the

inspection. The Charge Card 

Management Plan was also 

updated to include the annual

education and quarterly review 

process. Therefore, the agreed‐

upon actions are resolved and 
 

 

 

 

   

Farm Credit Administration	 Office of Inspector General 

1501 Farm Credit Drive 

McLean, Virginia 22102-5090 

January 31, 2017 

The Honorable Dallas P. Tonsager, Board Chairman  

The Honorable Kenneth A. Spearman, Board Member 

The Honorable Jeffery S. Hall, Board Member 

Farm Credit Administration 

1501 Farm Credit Drive 

McLean, Virginia 22102‐5090 

Dear Board Chairman Tonsager and FCA Board Members Spearman and Hall: 

The Office of Inspector General (OIG) completed an inspection of the Farm Credit Administration’s (FCA or 

Agency) Travel Card Program. The objective of this inspection was to determine whether FCA’s oversight of 

the travel card program was effective. 

We found FCA’s oversight of the travel card is generally effective.  FCA established and implemented controls 

over the travel card program. For example, FCA established: 

 A process for travel card certifications and recertifications. 

 Travel card limits and a methodology to restrict accounts.  

 A process to ensure travel charges are appropriate and related to official travel.  

 A new Operations Handbook for both travel and purchase cards.  

We identified opportunities to improve the travel card program. In response to our report, the Agency agreed 

to: 

1.	 Provide education to cardholders on misuse of the government charge card, proper cash advances, 

delinquencies, potential disciplinary actions, the importance of reviewing statements for accuracy of 

charges, and the dispute process. 

2.	 Follow up on previous audit recommendations and agreed‐upon actions by implementing, and 

including in the Charge Card Management Plan and/or Operational Handbook for Travel Card 

Operations, a process to: 

 request and reconcile all active FCA travel cardholders with BFS on a quarterly basis to ensure 

proper closures; and, 

 provide annual education to travel cardholders on Agency policies and areas of improvement 

found during internal reviews. 

OAS provided an article to be published in the Agency newsletter on the travel card. Educational materials 

were also provided that are to be uploaded to the internal travel site covering the areas found during the 

inspection. The Charge Card Management Plan was also updated to include the annual education and 

quarterly review process. Therefore, the agreed‐upon actions are resolved and considered closed.   
We appreciate the courtesies and professionalism extended by FCA personnel to the OIG staff. If you have 

any questions about this inspection, I would be pleased to meet with you at your convenience. 

Respectfully, 

Elizabeth M. Dean 

Inspector General 

Enclosure 
   

TABLE OF CONTENTS

BACKGROUND _______________________________________________________________________  1
 

Prior Reviews  ______________________________________________________________________  2 

INSPECTION RESULTS__________________________________________________________________  2
 

Transaction Testing _________________________________________________________________  3 

Administrative Controls ______________________________________________________________  4 

Delinquencies ____________________________________________________________________  4 

Closure of Accounts _______________________________________________________________  5 

Agreed‐Upon Actions 1‐2_____________________________________________________________  6 

OBJECTIVE, SCOPE, AND METHODOLOGY _________________________________________________  7
 

ACRONYMS  _________________________________________________________________________  8
 
BACKGROUND 

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ϭ
Prior Reviews

The OIG has conducted several reviews to include the following:

 In 2014, the OIG conducted an audit, The Farm Credit Administration’s Travel Card Program (A‐

14‐03), August 2014. The objective was to determine whether FCA’s oversight of the travel card 

program was effective. The Agency agreed to:

o Provide education to cardholders, at least annually;

o Determine a process for quarterly transaction activity reports;

o Document procedures on placing or removing an account in restricted status and 

reconciliations of open status accounts;

o Evaluate the sufficiency of existing check out procedures; and

o Update the Charge Card Management Plan, PPM 711, and PPM 826.

All agreed‐upon actions were addressed and closed by September 2014. 

 The OIG also performed an inspection, Distribution, Usage and Control of Purchase and Travel 

Cards at the Farm Credit Administration (I‐09‐01), June 2009. The objective was to determine

the effectiveness and efficiency of the implementation of government purchase and travel cards 

at FCA. For travel cards, the inspection found FCA had adequate controls over the program and 

there were no delinquencies over 60 days. The Agency agreed to update policies, determine if 

limits should be lowered during low activity levels, and provide transaction reports on a 

quarterly basis. 

All agreed‐upon actions were addressed and closed by September 2009. 

INSPECTION RESULTS 

2 

The objective of this inspection was to determine if FCA’s oversight of the travel card program was 

effective. We found FCA’s oversight is generally effective. FCA established and implemented controls 

over the travel card program. For example: 

 FCA has a documented process for travel card certifications and recertifications. New FCA 

employees certify they understand these policies and procedures when they are issued the

travel card. Every three years, employees must recertify that they will adhere to the policies and 

procedures. We randomly sampled employees to verify certifications were completed within the 

last three years. All of the employees selected to review had certifications on file.   

 Travel card limits and restricted accounts were established. As of October 2016, FCA had a total 

of 294 travel cardholders. The standard travel limit for travel cards is $8,000. Of the 294

cardholders, 243 had the standard limit. The following chart shows the breakdown of limits and 

number of cardholders in each category: 
Limits	 Number of Cardholders

$20  1 

$1000  16 

$2500  5 

$5000  29 

$8000  243 

Grand Total  294 

                                                            

We found no cardholders had a limit above the standard amount. Further, we found the Agency 

lowered limits on restricted cards, which are cards that have been restricted due to 

creditworthiness. 

	 FCA has a process to ensure travel charges are appropriate and related to official travel. OAS 

performs monthly audits on travel transactions. An OAS official reviews 10 percent of randomly 

selected employees each month for misuse, cash withdrawals, and verification of authorizations 

on travel transactions. 

	 FCA implemented a new Operations Handbook for both travel and purchase cards. This 

handbook is a detailed step‐by‐step guide on how OAS completes reviews and documents 

controls over the program. 

While the travel card program oversight is generally effective, there are opportunities for improvement

in cardholder education, certain administrative controls, and items identified in our previous review.   

Transaction Testing		

When an employee uses their travel card, the charge is included on reports with the employee, expense,

merchant, date, location, and additional items listed per transaction. We reviewed FCA’s travel activity 

for Fiscal Years 2015 and 2016. We judgmentally sampled 585 transactions for further review2

. Most of 

the transactions contained proper documentation, approvals, and information supporting official travel

expenses. From our judgmental sample, we identified the following 33 exceptions of the 585 

transactions sampled3

: 

	 16 transactions by two individuals showing misuse of the travel card. One individual used their 

travel card to purchase airline tickets for family members. The other individual did not follow 

2 We judgmentally sampled the transactions based on: activity, type, location, and number of charges; cash withdrawal periods; 

and travel timeframes. Because our sample was judgmental and not statistically sampled, we cannot project our findings to the 

entire population. 

3 Of the exceptions found, we determined that a referral for investigations was not deemed necessary after a review of the 

travel system, conducting interviews, and discussions with officials.   

3 
   

  

     

Agency policy on cash advances. In both instances, FCA also discovered the misuse during 

internal reviews and individuals received disciplinary actions prior to our review.

	 Six transactions between three individuals were identified as erroneous charges. All three 

individuals indicated the charges were inaccurate or from potentially stolen card numbers. 

However, none of the individuals filed a dispute for the charges with the credit card company, as 

of our review. Two of the individuals stated they were unaware of the transactions until our 

conversation and they filed a dispute after our discussions. The remaining individual was aware 

of the transactions, but stated the credit card company would not allow a dispute claim because 

the transactions were past the 60‐day window to file a claim.

	 11 transactions lacked receipts in the travel system, lacked approvals per Agency policy, or the 

support and reasoning of official travel was not included in the file.

Cardholder education is a valuable tool to remind employees of Agency policy and travel card 

requirements. Cardholders sign an agreement at issuance of the travel card that states the overall 

requirements and personal use restrictions. FCA and BFS consider the actual re‐signing of the one‐page 

statement of cardholder responsibility to be the refresher training required every three years. Beyond 

the agreements, there are limited trainings on travel cards. In response to similar issues found during

our 2014 audit of the travel card program, Agency officials agreed to provide education to cardholders 

annually. Education has not been provided other than in August and November 2014. The Agency 

revised its internal travel site in August 2016 with common travel site links and information. This may be 

an efficient site to provide annual education through a presentation or fact sheets on common areas of 

misuse, etc.

FCA could also improve the reporting process to help identify unauthorized charges. OAS provides 

quarterly reports to FCA managers showing all charges made to the travel cards by each employee.

These reports have been identified as a tool to verify charges related to official government travel. FCA’s 

PPM 711 states supervisors will take appropriate actions for improper transactions based on the

quarterly report. We randomly selected a quarterly report distribution for Fiscal Year 2016. The reports 

were issued to managers by email in April 2016. OAS requested each responsible official respond to the

report if they find no discrepancies and charges appear to be appropriate and related to official travel. If 

discrepancies were noted, OAS asked management to state the employee’s name, discrepancy, and

action taken. Of the eight distributions reviewed for the quarter, four responses were received as 

requested. Three offices failed to respond at all. One office responded to the quarterly report that there 

would be a delay in processing, but had not responded on the accuracy of the transactions as of October 

2016. 

Administrative Controls

Delinquencies 

Over the 24‐month period reviewed, employees had not always made timely payments for travel card 

expenses. When an employee is issued a travel card, the user agreement states accounts must be paid 

in full by the due date. In addition, FCA’s PPM 711 states an example of government card misuse is a 

delinquent account, which can lead to disciplinary action.  

4 
ρ

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ŵŽŶƚŚůLJĚĞůŝŶƋƵĞŶĐLJƌĞƉŽƌƚƐƐŽƌƚĐĂƌĚŚŽůĚĞƌĂĐĐŽƵŶƚƐŝŶƚŽĐĂƚĞŐŽƌŝĞƐŽĨϯϬͲĚĂLJŝŶĐƌĞŵĞŶƚƐ͘&Žƌ

ĞdžĂŵƉůĞ͕ƚŚĞůŝƐƚŝŶŐƐŚŽǁƐĐĂƌĚŚŽůĚĞƌĂĐĐŽƵŶƚƐϯϬĚĂLJƐƉĂƐƚĚƵĞ͕ςϬĚĂLJƐƉĂƐƚĚƵĞ͕ƵƉƚŽŽǀĞƌϭΘϬĚĂLJƐ

ĞĂĐŚŵŽŶƚŚ͘ĞůŝŶƋƵĞŶƚĂĐĐŽƵŶƚƐĐĂŶŐŽŝŶƚŽƉƌĞƐƵƐƉĞŶƐŝŽŶ͕ƐƵƐƉĞŶƐŝŽŶ͕ĂŶĚĐĂŶĐĞůůĂƚŝŽŶƐƚĂƚƵƐŝĨŶŽƚ

ƉĂŝĚ͘ƵƌŝŶŐŽƵƌƌĞǀŝĞǁŽĨƚŚĞĚĞůŝŶƋƵĞŶĐLJƌĞƉŽƌƚƐ͕ǁĞĨŽƵŶĚρεĂĐĐŽƵŶƚƐƚŚĂƚǁĞƌĞςϬĚĂLJƐƉĂƐƚĚƵĞ͕κ

ĂĐĐŽƵŶƚƐεϬĚĂLJƐƉĂƐƚĚƵĞ͕ĂŶĚϮĂĐĐŽƵŶƚƐĂƐϭϮϬĚĂLJƐƉĂƐƚĚƵĞŽǀĞƌƚŚĞϮκͲŵŽŶƚŚƉĞƌŝŽĚ͘

dŚĞĨŽůůŽǁŝŶŐĐŚĂƌƚƐŚŽǁƐĂůůĚĞůŝŶƋƵĞŶƚĂĐĐŽƵŶƚƐĨŽƌƚŚĞƉĞƌŝŽĚŽĨŽƵƌƌĞǀŝĞǁ͗

Ϭ

ρ

ϭϬ

ϭρ

ϮϬ

Ϯρ

ϯϬ

ϯρ

κϬ

KĐƚͲϭκ

EŽǀͲϭκ

ĞĐͲϭκ

:ĂŶͲϭρ

&ĞďͲϭρ

DĂƌͲϭρ

ƉƌͲϭρ

DĂLJͲϭρ

:ƵŶͲϭρ

:ƵůͲϭρ

ƵŐͲϭρ

^ĞƉͲϭρ

KĐƚͲϭρ

EŽǀͲϭρ

ĞĐͲϭρ

:ĂŶͲϭς

&ĞďͲϭς

DĂƌͲϭς

ƉƌͲϭς

DĂLJͲϭς

:ƵŶͲϭς

:ƵůͲϭς

ƵŐͲϭς

^ĞƉͲϭς

EƵŵďĞƌŽĨĞůŝŶƋƵĞŶƚĐĐŽƵŶƚƐĂĐŚDŽŶƚŚ

ϯϬĚĂLJƐŽǀĞƌĚƵĞ ςϬĚĂLJƐŽǀĞƌĚƵĞ εϬĚĂLJƐŽǀĞƌĚƵĞ ϭϮϬĚĂLJƐŽǀĞƌĚƵĞ

/ŶŽƵƌƉƌĞǀŝŽƵƐĂƵĚŝƚ͕FCA’s Travel Card Program, August 2014͕ǁĞŝĚĞŶƚŝĨŝĞĚĚĞůŝŶƋƵĞŶĐŝĞƐŽǀĞƌĂϭεͲ

ŵŽŶƚŚƉĞƌŝŽĚ͕ǁŝƚŚϮϳĂĐĐŽƵŶƚƐƚŚĂƚǁĞŶƚŝŶƚŽƉƌĞƐƵƐƉĞŶƐŝŽŶ͘,ŽǁĞǀĞƌ͕ĚƵƌŝŶŐƚŚŝƐƌĞǀŝĞǁŽĨĂϮκͲ

ŵŽŶƚŚƉĞƌŝŽĚ͕ƚŚĞƌĞǁĞƌĞŽŶĂǀĞƌĂŐĞϮĂĐĐŽƵŶƚƐƉĞƌŵŽŶƚŚ;ρεŝŶƚŽƚĂůͿƚŚĂƚǁĞƌĞŝŶƉƌĞƐƵƐƉĞŶƐŝŽŶ͘

K^͛ƐŽǀĞƌƐŝŐŚƚƉƌŽĐĞƐƐǁŝƚŚĚĞůŝŶƋƵĞŶĐŝĞƐŝƐƚŽŝƐƐƵĞŶŽƚŝĨŝĐĂƚŝŽŶƐƚŽĐĂƌĚŚŽůĚĞƌƐĂŶĚƚŚĞŝƌƐƵƉĞƌǀŝƐŽƌƐ

ŝĨĂŶLJĂĐĐŽƵŶƚŐŽĞƐŝŶƚŽƚŚĞςϬĚĂLJƐŽǀĞƌĚƵĞĐĂƚĞŐŽƌLJ͘ŐĞŶĐLJŽĨĨŝĐŝĂůƐƐƚĂƚĞĚƚŚŝƐǁĂƐŶŽƚĂůǁĂLJƐ

ĐŽŵƉůĞƚĞĚĚƵĞƚŽƚƌĂŶƐŝƚŝŽŶŝŶƚŚĞŽǀĞƌƐŝŐŚƚƌŽůĞƐĂŶĚƌĞŽƌŐĂŶŝnjĂƚŝŽŶǁŝƚŚŝŶ&͘K^ŚĂĚƐĞǀĞƌĂů

ƉĞƌƐŽŶŶĞůĐŚĂŶŐĞƐŝŶŽǀĞƌƐŝŐŚƚƌŽůĞƐǁŝƚŚŝŶƚŚĞĐŚĂƌŐĞĐĂƌĚƉƌŽŐƌĂŵŽǀĞƌƚŚĞůĂƐƚƚǁŽLJĞĂƌƐ͘

ůŽƐƵƌĞŽĨĐĐŽƵŶƚƐ

tĞĨŽƵŶĚĚŝƐĐƌĞƉĂŶĐŝĞƐŝŶƚŚĞĂĐƚŝǀĞƚƌĂǀĞůĐĂƌĚŚŽůĚĞƌůŝƐƚŝŶŐ͘&͛ƐƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐƐƚĂƚĞǁŚĞŶ

ĞŵƉůŽLJĞĞƐůĞĂǀĞƚŚĞŐĞŶĐLJ͕ƚŚĞLJĂƌĞƚŽĐŽŵƉůĞƚĞĂŶĚƐƵďŵŝƚƚŚĞ&&ŽƌŵϯϬϮ͕ŵƉůŽLJĞĞŚĞĐŬKƵƚ

ZĞĐŽƌĚ͘dŚŝƐĨŽƌŵĐŽŶƚĂŝŶƐĂŶĂƌĞĂĨŽƌƚƌĂǀĞůĐĂƌĚĐůĞĂƌĂŶĐĞ͘&ŝƐĂůƐŽƌĞƐƉŽŶƐŝďůĞĨŽƌŶŽƚŝĨLJŝŶŐ&^ŽĨ

ĞŵƉůŽLJĞĞƐ͛ƐĞƉĂƌĂƚŝŽŶƐ͘
         

   

In order to test the control, we requested a listing of all current FCA travel cardholders, which was 

provided by BFS. The listing was compared to active employees in the personnel system. We identified

four individuals that were listed as active cardholders, but were no longer employees. Two of the four 

individuals were recent separations. The other two separated from the Agency in 2012 and 2015, 

respectively. BFS showed both of the accounts were closed when the individuals left the Agency.

However, they still appeared on the report for active travel cardholders assigned to FCA. It was unclear

why these individuals were listed as active cardholders. We did not see any charges from either

cardholder on the transaction listings after separating from the Agency.  

In response to our last audit in 2014 on travel cards, FCA stated it would review the BFS listing for active 

cardholders quarterly. However, this was not being conducted. Officials stated they are looking at the 

listing annually. We also found the quarterly review requirement was not in the Travel Card Operations 

Handbook, which documents the internal procedures used for the travel card program.  

Agreed‐Upon Actions 1‐2

In order to improve the travel card program, the Agency agreed to:

1.	 Provide education to cardholders on misuse of the government charge card, proper cash 

advances, delinquencies, potential disciplinary actions, the importance of reviewing statements 

for accuracy of charges, and the dispute process.  

2.	 Follow up on previous audit recommendations and agreed‐upon actions by implementing, and

including in the Charge Card Management Plan and/or Operational Handbook for Travel Card 

Operations, a process to: 

	 request and reconcile all active FCA travel cardholders with BFS on a quarterly basis to 

ensure proper closures; and, 

	 provide annual education to travel cardholders on Agency policies and areas of

improvement found during internal reviews. 

In response to the inspection, OAS provided an article to be published in the Agency newsletter on the 

travel card. Educational materials were also provided that will be uploaded to the internal travel site 

covering the areas found during the inspection. The Charge Card Management Plan was also updated to 

include the annual education and quarterly review process. Therefore, the agreed‐upon actions are 

resolved and considered closed. 

6 
ϳ

OBJECTIVE, SCOPE, AND METHODOLOGY 

dŚĞŽďũĞĐƚŝǀĞŽĨƚŚŝƐŝŶƐƉĞĐƚŝŽŶǁĂƐƚŽĚĞƚĞƌŵŝŶĞŝĨ&͛ƐŽǀĞƌƐŝŐŚƚŽĨƚŚĞƚƌĂǀĞůĐĂƌĚƉƌŽŐƌĂŵǁĂƐ

ĞĨĨĞĐƚŝǀĞ͘tĞĐŽŶĚƵĐƚĞĚƚŚĞŝŶƐƉĞĐƚŝŽŶĂƚ&͛ƐŚĞĂĚƋƵĂƌƚĞƌƐŝŶDĐ>ĞĂŶ͕sĨƌŽŵKĐƚŽďĞƌϮϬϭς

ƚŚƌŽƵŐŚ:ĂŶƵĂƌLJϮϬϭϳ͘tĞůŝŵŝƚĞĚŽƵƌƐĐŽƉĞƚŽ&ŝƐĐĂůzĞĂƌƐϮϬϭρĂŶĚϮϬϭς͘

tĞƚŽŽŬƚŚĞĨŽůůŽǁŝŶŐƐƚĞƉƐƚŽĂĐĐŽŵƉůŝƐŚƚŚĞŽďũĞĐƚŝǀĞ͗

x /ĚĞŶƚŝĨŝĞĚĂŶĚƌĞǀŝĞǁĞĚĂƉƉůŝĐĂďůĞ&ĞĚĞƌĂůůĂǁƐ͕ƌĞŐƵůĂƚŝŽŶƐ͕ĂŶĚŐƵŝĚĂŶĐĞƌĞůĂƚĞĚƚŽƚŚĞ

ŽďũĞĐƚŝǀĞ͘

x ZĞǀŝĞǁĞĚƉƌŝŽƌƌĞǀŝĞǁƐƌĞůĂƚĞĚƚŽƚŚĞŝŶƐƉĞĐƚŝŽŶŽďũĞĐƚŝǀĞ͘

x ŽŶĚƵĐƚĞĚŝŶƚĞƌǀŝĞǁƐǁŝƚŚƉĞƌƐŽŶŶĞůĨƌŽŵƚŚĞKĨĨŝĐĞŽĨŐĞŶĐLJ^ĞƌǀŝĐĞƐ͕KĨĨŝĐĞŽĨdžĂŵŝŶĂƚŝŽŶ͕

ĂŶĚƚŚĞKĨĨŝĐĞŽĨ/ŶĨŽƌŵĂƚŝŽŶdĞĐŚŶŽůŽŐLJ͘

x /ĚĞŶƚŝĨŝĞĚĂŶĚƌĞǀŝĞǁĞĚĂƉƉůŝĐĂďůĞŝŶƚĞƌŶĂů&ƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐ͘

x ZĞƋƵĞƐƚĞĚĂŶĚƌĞǀŝĞǁĞĚƚŚĞůŝƐƚŝŶŐŽĨĂůůĂĐƚŝǀĞƚƌĂǀĞůĐĂƌĚĂĐĐŽƵŶƚƐĂŶĚůŝŵŝƚĂƚŝŽŶƐĨŽƌĞĂĐŚ

ĂĐĐŽƵŶƚĂƐŽĨKĐƚŽďĞƌϮϬϭς͘ŽŵƉĂƌĞĚůŝƐƚŝŶŐƚŽĐƵƌƌĞŶƚĞŵƉůŽLJĞĞƐƚŽĚĞƚĞƌŵŝŶĞŝĨƚĞƌŵŝŶĂƚĞĚ

ĂŶĚƚƌĂŶƐĨĞƌƌĞĚĞŵƉůŽLJĞĞƐǁĞƌĞƌĞŵŽǀĞĚ͘ĞƚĞƌŵŝŶĞĚŝĨƚŚĞůŝŵŝƚĂƚŝŽŶƐǁĞƌĞǁŝƚŚŝŶ

ĞƐƚĂďůŝƐŚĞĚŐƵŝĚĞůŝŶĞƐĂŶĚĂƉƉƌŽƉƌŝĂƚĞ͘

x ZĂŶĚŽŵůLJƐĂŵƉůĞĚƚƌĂŝŶŝŶŐƌĞĐŽƌĚƐŽĨĐĂƌĚŚŽůĚĞƌƐƚŽĞŶƐƵƌĞƚƌĂŝŶŝŶŐĐĞƌƚŝĨŝĐĂƚĞƐĂŶĚƌĞĨƌĞƐŚĞƌ

ƚƌĂŝŶŝŶŐƐǁĞƌĞĐŽŵƉůĞƚĞĚ͘

x ZĞƋƵĞƐƚĞĚĂŶĚƌĞǀŝĞǁĞĚƚƌĂǀĞůĂĐƚŝǀŝƚLJŽŶĞĂĐŚƚƌĂǀĞůĐĂƌĚĂĐĐŽƵŶƚĨŽƌƚŚĞ&ŝƐĐĂůzĞĂƌƐϮϬϭρĂŶĚ

ϮϬϭςĨŽƌƉŽƚĞŶƚŝĂůůLJŝŵƉƌŽƉĞƌ͕ŝůůĞŐĂů͕ŽƌĞƌƌŽŶĞŽƵƐĐŚĂƌŐĞƐďLJũƵĚŐŵĞŶƚĂůůLJƐĂŵƉůŝŶŐĐŚĂƌŐĞƐ

ďĂƐĞĚŽŶŵĞƌĐŚĂŶƚĐŽĚŝŶŐ͕ůŽĐĂƚŝŽŶƐ͕ĚĂƚĞƐ͕ĂŶĚĂŵŽƵŶƚƐ͘sĞƌŝĨŝĞĚĚŽĐƵŵĞŶƚĂƚŝŽŶŝŶƚŚĞƚƌĂǀĞů

ĂŶĚĐƌĞĚŝƚĐĂƌĚƐLJƐƚĞŵ͘ĞĐĂƵƐĞŽƵƌƐĂŵƉůĞǁĂƐũƵĚŐŵĞŶƚĂů͕ŝƚĐĂŶŶŽƚďĞƉƌŽũĞĐƚĞĚƚŽƚŚĞ

ĞŶƚŝƌĞƉŽƉƵůĂƚŝŽŶ͘

x ĞƚĞƌŵŝŶĞĚŝĨƌĞƉŽƌƚƐƐŚŽǁŝŶŐƚƌĂǀĞůĐŚĂƌŐĞƐǁĞƌĞƐĞŶƚƚŽŵĂŶĂŐĞŵĞŶƚĂŶĚǁŚĞƚŚĞƌƚŚĞ

ŽĨĨŝĐŝĂůƐƌĞƐƉŽŶĚĞĚĂĐĐŽƌĚŝŶŐůLJ͘

x ŶĂůLJnjĞĚĚĞůŝŶƋƵĞŶĐLJƌĞƉŽƌƚƐĨŽƌĞĂĐŚŵŽŶƚŚŝŶƚŚĞ&ŝƐĐĂůzĞĂƌƐϮϬϭρĂŶĚϮϬϭς͘

dŚŝƐŝŶƐƉĞĐƚŝŽŶǁĂƐƉĞƌĨŽƌŵĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƵŶĐŝůŽĨƚŚĞ/ŶƐƉĞĐƚŽƌƐ'ĞŶĞƌĂůŽŶ/ŶƚĞŐƌŝƚLJ

ĂŶĚĨĨŝĐŝĞŶĐLJ͛ƐYƵĂůŝƚLJ^ƚĂŶĚĂƌĚƐĨŽƌ/ŶƐƉĞĐƚŝŽŶĂŶĚǀĂůƵĂƚŝŽŶ͘dŚŽƐĞƐƚĂŶĚĂƌĚƐƌĞƋƵŝƌĞƚŚĂƚǁĞƉůĂŶ

ĂŶĚƉĞƌĨŽƌŵƚŚĞŝŶƐƉĞĐƚŝŽŶƚŽŽďƚĂŝŶƐƵĨĨŝĐŝĞŶƚ͕ĐŽŵƉĞƚĞŶƚĂŶĚƌĞůĞǀĂŶƚĞǀŝĚĞŶĐĞƚŚĂƚƐƵƉƉŽƌƚƐĂ

ƌĞĂƐŽŶĂďůĞďĂƐŝƐĨŽƌŽƵƌĨŝŶĚŝŶŐƐ͕ĐŽŶĐůƵƐŝŽŶƐĂŶĚƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ͘tĞĂƐƐĞƐƐĞĚŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐĂŶĚ

ĐŽŵƉůŝĂŶĐĞǁŝƚŚůĂǁƐĂŶĚƌĞŐƵůĂƚŝŽŶƐƚŽƚŚĞĞdžƚĞŶƚŶĞĐĞƐƐĂƌLJƚŽƐĂƚŝƐĨLJƚŚĞŽďũĞĐƚŝǀĞ͘ĞĐĂƵƐĞŽƵƌ

ƌĞǀŝĞǁǁĂƐůŝŵŝƚĞĚ͕ŝƚǁŽƵůĚŶŽƚŶĞĐĞƐƐĂƌŝůLJŚĂǀĞĚŝƐĐůŽƐĞĚĂůůŝŶƚĞƌŶĂůĐŽŶƚƌŽůĚĞĨŝĐŝĞŶĐŝĞƐƚŚĂƚŵĂLJ

ŚĂǀĞĞdžŝƐƚĞĚĂƚƚŚĞƚŝŵĞŽĨŽƵƌŝŶƐƉĞĐƚŝŽŶ͘tĞĂƐƐĞƐƐĞĚƚŚĞŝŶĨŽƌŵĂƚŝŽŶĂŶĚĚĂƚĂĐŽůůĞĐƚĞĚĚƵƌŝŶŐƚŚĞ

ŝŶƐƉĞĐƚŝŽŶĂŶĚĚĞƚĞƌŵŝŶĞĚŝƚǁĂƐƐƵĨĨŝĐŝĞŶƚůLJƌĞůŝĂďůĞĂŶĚǀĂůŝĚĨŽƌƵƐĞŝŶŵĞĞƚŝŶŐƚŚĞŝŶƐƉĞĐƚŝŽŶ

ŽďũĞĐƚŝǀĞƐ͘tĞĂƐƐĞƐƐĞĚƚŚĞƌŝƐŬŽĨĨƌĂƵĚƌĞůĂƚĞĚƚŽŽƵƌŝŶƐƉĞĐƚŝŽŶŽďũĞĐƚŝǀĞŝŶƚŚĞĐŽƵƌƐĞŽĨĞǀĂůƵĂƚŝŶŐ

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ACRONYMS 

BFS  Bureau of the Fiscal Service

FCA  Farm Credit Administration 

GSA    General Services Administration  

OAS    Office of Agency Services

OIG  Office of Inspector General  

PPM  Policies and Procedures Manual 

8 
                 

REPORT 
 

Fraud  |  Waste  |  Abuse   |  Mismanagement 

FARM CREDIT ADMINISTRATION 

OFFICE OF INSPECTOR GENERAL 

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