The report accompanying these financial statements was issued by 

BDO USA, LLP, a Delaware limited liability partnership and the U.S. member 

of BDO International Limited, a UK company limited by guarantee. 

Farm Credit System Insurance 

Corporation

Audited Financial Statements

For the Years Ended December 31, 2021 and 2020
Farm Credit System Insurance Corporation

Contents

Independent Auditor’s Report F1 – F3

Financial Statements

Statements of Financial Condition F4

Statements of Income and Expenses and Changes in Insurance Fund F5

Statements of Cash Flows F6

Notes to the Financial Statements F7 - F12

Management’s Report on Internal Control Over Financial Reporting F13
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the 

international BDO network of independent member firms. 

BDO is the brand name for the BDO network and for each of the BDO Member Firms.

F1 

Independent Auditor’s Report 

Board of Directors

Farm Credit System Insurance Corporation

McLean, VA 22102

Report on the Audit of the Financial Statements and Internal Control over Financials Reporting 

Opinions on the Financial Statements and Internal Control Over Financial Reporting

We have audited the financial statements of the Farm Credit System Insurance Corporation (FCSIC), 

which comprise the statements of financial position as of December 31, 2021 and 2020, and the related 

statements of income and expenses and changes in Insurance Fund and cash flows for the years then 

ended, and the related notes to the financial statements. 

In our opinion, the accompanying financial statements present fairly, in all material respects, the 

financial position of the Farm Credit System Insurance Corporation as of December 31, 2021 and 2020, 

and the results of its operations and its cash flows of the years then ended in accordance with 

accounting principles generally accepted in the United States of America.

We have also audited FCSIC’s internal control over financial reporting as of December 31, 2021, based 

on criteria established in Internal Control – Integrated Framework (2013), issued by the Committee of 

Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Farm Credit 

System Insurance Corporation maintained, in all material respects, effective internal control over 

financial reporting as of December 31, 2021, based on the COSO criteria. 

Basis for Opinions

We conducted our audits in accordance with auditing standards generally accepted in the United States 

of America (GAAS) and the standards applicable to financial audits contained in Government Auditing

Standards issued by Comptroller General of the United States. Our responsibilities under those 

standards are further described in the Auditor’s Responsibilities for the Audits of the Financial 

Statements and Auditor’s Responsibilities for the Audit of Internal Control Over Financial Reporting 

sections of our report. We are required to be independent of the Farm Credit System Insurance 

Corporation and to meet our other ethical responsibilities, in accordance with the relevant ethical 

requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient 

and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements and Internal Control Over Financial 

Reporting

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with accounting principles generally accepted in the United States of America, and for the 

design, implementation, and maintenance of internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether due to fraud 

or error. Management is also responsible for designing, implementing, and maintaining effective 

internal control over financial reporting and for its assessment about the effectiveness of internal 

control over financial reporting, included in the accompanying Management’s Report on Internal 

Control Over Financial Reporting. 

8401 Greensboro Drive

Suite 800 

McLean, VA 22102 

Tel: 703-893-0600

Fax: 703-893-2766 

www.bdo.com 
F2 

In preparing the financial statements, management is required to evaluate whether there are 

conditions or events, considered in the aggregate, that raise substantial doubt about FCISC’s ability to

continue as a going concern within one year after the date that the financial statements are issued.

Auditor’s Responsibilities for the Audit of the Financial Statements 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 

are free from material misstatement, whether due to fraud or error and to issue an auditor’s report 

that includes our opinion. 

Reasonable assurance is a high level of assurance, but is not absolute assurance, and therefore is not 

a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards

will always detect a material misstatement when it exists. The risk of not detecting a material 

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve 

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

Misstatements are considered material if there is a substantial likelihood that, individually or in the 

aggregate, they would influence the judgment made by a reasonable user based on the financial 

statements.

In performing an audit in accordance with GAAS and Government Auditing Standards we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether

due to fraud or error, and design and perform audit procedures responsive to those risks. Such

procedures include examining, on a test basis, evidence regarding the amounts and disclosures

in the financial statements.

• Obtain an understanding of internal control relevant to the financial statement audit in order

to design audit procedures that are appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant

accounting estimates made by management, as well as evaluate the overall presentation of

the financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the

aggregate, that raise substantial doubt about FCSIC’s ability to continue as a going concern for

a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, 

the planned scope and timing of the audit, significant audit findings, and certain internal controlrelated matters that we identified during the financial statement audit.

Auditor’s Responsibilities for Audit of Internal Control Over Financial Reporting

Our objectives are to obtain reasonable assurance about whether effective internal control over 

financial reporting was maintained in all material respects and to issue an auditor’s report that 

includes our opinion on internal control over financial reporting. Reasonable assurance is a high level 

of assurance but is not absolute assurance and therefore is not a guarantee that an audit of internal 

control over financial reporting conducted in accordance with GAAS will always detect a material 

weakness when it exists. 
F3 

In performing an audit of internal control over financial reporting in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Obtain an understanding of internal control over financial reporting relevant to the audit of

internal control over financial reporting, assess the risks that a material weakness exists, and

test and evaluate the design and operating effectiveness of internal control over financial

reporting based on the assessed risk.

Definition and Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with 

governance, management, and other personnel, designed to provide reasonable assurance regarding 

the preparation of reliable financial statements in accordance with accounting principles generally 

accepted in the United States of America. An entity’s internal control over financial reporting includes 

those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, 

accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide 

reasonable assurance that transactions are recorded as necessary to permit preparation of financial 

statements in accordance with accounting principles generally accepted in the United States of 

America, and that receipts and expenditures of the entity are being made only in accordance with 

authorizations of management and those charged with governance; and (3) provide reasonable 

assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, 

or disposition of the entity’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect 

and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are 

subject to the risk that controls may become inadequate because of changes in conditions, or that the 

degree of compliance with the policies or procedures may deteriorate.

Report on Compliance and Other Matters Based on an Audit of Financial Statements

As part of obtaining reasonable assurance about whether the Farm Credit System Insurance 

Corporation’s financial statements are free from material misstatement, we performed tests of its 

compliance with certain provisions of laws, regulations, contracts, and grant agreements, 

noncompliance with which could have a direct and material effect on the financial statements. 

However, providing an opinion on compliance with those provisions was not an objective of our audit, 

and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of 

noncompliance or other matters that are required to be reported under Government Auditing 

Standards. 

McLean, Virginia

February 15, 2022
December 31, 2021 2020

Assets

Cash and cash equivalents $ 4,940 $ 664,600

Investments in U.S. Treasury obligations 5,471,826 4,512,618

Premiums receivable 460,503 255,365

Accrued interest receivable 23,187 22,295

General property, plant, equipment, and software, net 6 25

Total Assets $ 5,960,462 $ 5,454,903

Liabilities and Insurance Fund

Liabilities

Accounts payable and accrued expenses $ 694 $ 649

Total Liabilities 694 649

Insurance Fund

Unallocated Insurance Fund 5,959,768 5,454,254

Total Insurance Fund 5,959,768 5,454,254

Total Liabilities and Insurance Fund $ 5,960,462 $ 5,454,903

See accompanying notes to the financial statements.

Farm Credit System Insurance Corporation

Statements of Financial Condition

(Dollars in thousands)

F4
Year-ended December 31, 2021 2020

Income

Premiums $ 460,770 $ 255,365

Interest income 48,894 64,650

Total Income 509,664 320,015

Expenses

Administrative operating expenses 4,150 4,058

Total Expenses 4,150 4,058

Net income 505,514 315,957

Insurance Fund - beginning of year 5,454,254 5,201,011

Payments to AIRAs' account holders - (62,714)

Insurance Fund - end of year $ 5,959,768 $ 5,454,254

See accompanying notes to the financial statements.

Farm Credit System Insurance Corporation

Statements of Income and Expenses and Changes in Insurance Fund

(Dollars in thousands)

F5
Year-ended December 31, 2021 2020

Cash flows from operating activities

Net income $ 505,514 $ 315,957

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation 19 19

Net amortization and accretion of investments 54,040 11,012

Increase in premiums receivable (205,138) (32,689)

Increase in accrued interest receivable (892) (117)

Increase in accounts payable and accrued

expenses 45 119

Net cash provided by operating activities 353,588 294,301

Cash flows from investing activities

Payments for purchase of U.S. Treasury obligations (3,740,265) (1,866,956)

Proceeds from maturity of U.S. Treasury obligations 2,727,017 2,196,561

Net cash (used in) provided by investing activities (1,013,248) 329,605

Cash flows from financing activity

Payment to AIRAs accountholders - (62,714)

Net cash used in financing activity - (62,714)

Net change in cash and cash equivalents (659,660) 561,192

Cash and cash equivalents, beginning of year 664,600 103,408

Cash and cash equivalents, end of year $ 4,940 $ 664,600

See accompanying notes to the financial statements.

Farm Credit System Insurance Corporation

 Statements of Cash Flows

(Dollars in thousands)

F6
Farm Credit System Insurance Corporation

Notes to the Financial Statements

F7 

Note 1: Organization and Summary of Significant Accounting Policies

Farm Credit Insurance Fund (Insurance Fund): Statutory Framework

The Agricultural Credit Act of 1987 established the Farm Credit System Insurance Corporation (the 

Corporation or FCSIC) for the purpose of insuring the timely payment of principal and interest on

notes, bonds, debentures, and other obligations issued under subsection (c) or (d) of section 4.2 of 

the Farm Credit Act of 1971, as amended (the Farm Credit Act). Each bank in the Farm Credit System 

(System) participating in insured obligations is an insured System bank. At December 31, 2021 there 

were four insured System banks and 67 direct lender associations, down from four insured System 

banks and 68 direct lender associations at December 31, 2020. 

The Corporation is managed by a board of directors consisting of the same individuals as the Farm 

Credit Administration (FCA) board except that the chairman of the FCA board may not serve as the 

chairman of the Corporation's board of directors. 

The Corporation must spend amounts in the Insurance Fund necessary to insure the timely payment 

of interest and principal on insured obligations. The Corporation, in its sole discretion, is authorized 

to expend amounts to provide financial assistance to System banks and direct lender associations. 

The Corporation may also act as receiver or conservator of a System bank or association. In addition,

FCSIC has the authority to create, and the Farm Credit Administration to charter, a System bridge 

bank, to assist with resolving a failed bank.

As of December 31, 2021, the System banks reported amounts totaling $353 billion of insured 

obligations compared to $323 billion as of December 31, 2020. 

If the Corporation does not have sufficient funds to ensure payment on insured obligations, System 

banks will be required to make payments under joint and several liability, as required by section 

4.4 (a)(2) of the Farm Credit Act. The insurance provided by the Insurance Fund is limited to the 

resources in the Insurance Fund. System obligations are not guaranteed by the U.S. government.

Under section 5.63 of the Farm Credit Act, the Corporation is exempt from all Federal, state, and 

local taxes with the exception of real property taxes.

Note 2: Basis of Accounting 

The accounting and reporting policies of the Corporation conform to accounting principles generally 

accepted in the United States of America (GAAP) and, as such, the financial statements have been 

prepared using the accrual basis of accounting.

Cash and Cash Equivalents

Cash and cash equivalents include investments in U.S. Treasury obligations with original maturities 

of 90 days or less. At December 31, 2021, the Corporation held $1.9 million in overnight Treasury 

certificates maturing on January 3, 2021, with an interest rate of 0.06 percent, and approximately 

$3.0 million in cash. At December 31, 2020, the Corporation held $664.3 million in overnight

Treasury certificates maturing on January 4, 2021, with an interest rate of 0.06 percent, and $309.7 

thousand in cash.
Farm Credit System Insurance Corporation

Notes to the Financial Statements

F8 

Investments in U.S. Treasury Obligations

Section 5.62 of the Farm Credit Act requires that funds of the Corporation, not otherwise employed, 

shall be invested in obligations of the United States or in obligations guaranteed as to principal and 

interest by the United States. The Corporation has classified its investments as held-to-maturity in 

accordance with Financial Accounting Standards Board Accounting Standards Codification 320, 

Investments - Debt and Equity Securities and carries them at amortized cost. Amortization of 

premium and accretion of discount on investments has been computed under the interest method 

since 2002. Fair value of investments is estimated based on quoted market prices for those or similar 

instruments.

Premium Receivable – Concentration of Credit Risk

The Farm Credit Act requires that the System banks pay premiums to FCSIC. The premium receivable 

balance consists of amounts due from the four System banks and as such is exposed to risks due to 

concentration. Historically, FCSIC has not experienced any losses related to the premium receivable

balance. FCSIC performs a quarterly analysis related to estimating an allowance for premium 

receivable which continues to indicate that no allowance is warranted.

Liability for Estimated Insurance Obligations

The liability for estimated insurance obligations is the present value of estimated probable insurance 

payments to be made in the future based on the Corporation's analysis of economic conditions of 

insured System banks.

The insured System banks' primary lending markets are borrowers engaged in farming, ranching, and 

producing or harvesting of aquatic products, and their cooperatives. Financial weaknesses in these 

market segments and the effect of general market conditions on the System's borrowers could 

adversely affect the banks' financial condition and profitability. Insured System banks also face risks 

from changing interest rate environments and the need to maintain ongoing access to financial 

markets. Adverse changes in the financial condition and profitability of insured System banks 

resulting from increased levels of credit, financial, or other risks could occur in the future which 

would require a liability for estimated insurance obligations to be recorded.

The Corporation actively monitors the creditworthiness and financial condition of the insured 

System banks. Management is not aware of any events or circumstances at this time which would 

require a liability for estimated insurance obligations to be recorded at December 31, 2021. 

Premiums 

Annual premiums are recorded as revenue during the 12-month calendar year period on which the 

premiums are based. All premiums are required to be paid to FCSIC on or before January 31st of the 

year subsequent to the year in which they are earned.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make 

estimates and assumptions that affect the reported amount of assets and liabilities and disclosure 

of contingent assets and liabilities at the date of the financial statements and the reported amount 
Farm Credit System Insurance Corporation

Notes to the Financial Statements

F9 

of revenues and expenses during the reporting period. Actual results could differ from those 

estimates. 

Note 3: Investments in U.S. Treasury Obligations

In addition to the amounts referenced in Note 2, Cash and Cash Equivalents, at December 31, 2021 

and 2020, investments in U.S. Treasury obligations, which are carried at amortized cost, consisted 

of the following:

Amortized

Gross 

Unrealized

Gross 

Unrealized Estimated 

(Dollars in thousands) Cost Gains Losses Fair Value

December 31, 2021

U.S. Treasury obligations $ 5,471,826 $ 27,397 $ (14,336) $ 5,484,887

December 31, 2020

U.S. Treasury obligations $ 4,512,618 $ 75,569 $ (183) $ 4,588,004

The amortized cost and estimated fair value of U.S. Treasury obligations at December 31, 2021, by 

contractual maturity, are shown below: 

(Dollars in thousands)

Amortized 

Cost

Estimated 

Fair Value

Due in one year or less $ 2,115,940 $ 2,119,377

Due after one year through five years 3,355,886 3,365,510

$ 5,471,826 $ 5,484,887

The Corporation follows GAAP for measuring, reporting, and disclosing fair value. These standards 

apply to all assets and liabilities that are measured, reported, and/or disclosed on a fair value basis. 

The fair value of FCSIC's investments in U.S. Treasury obligations are estimated based on quoted 

market prices for those instruments. 

Note 4: Premiums, the Secure Base Amount and Excess Insurance Fund Balances 

Each System bank which issues insured obligations under subsection (c) or (d) of section 4.2 of the 

Farm Credit Act is an insured System bank and is required to pay premiums to the Corporation.

The Farm Credit Act sets a secure base amount (SBA) for the Insurance Fund to achieve. The 

statutory SBA is equivalent to 2 percent of the aggregate outstanding insured obligations of all 

insured System banks (adjusted downward by a percentage of the guaranteed portions of principal 

outstanding on certain government-guaranteed loans and investments) or such other percentage as 

determined by the Corporation in its sole discretion to be actuarially sound to maintain in the 

Insurance Fund taking into account the risk of insuring outstanding insured obligations. 

The Farm Credit Act requires FCSIC to assess premiums based on each bank's pro rata share of 

insured debt (rather than on individual loans). FCSIC may collect from 0 to 20 basis points annually 
Farm Credit System Insurance Corporation

Notes to the Financial Statements

F10

on adjusted insured debt outstanding. The Farm Credit Act also authorizes a risk surcharge of up to 

10 basis points on nonaccrual loans and on other-than-temporarily impaired investments. The Farm 

Credit Act reduces the total insured debt on which premiums are assessed by 90 percent of Federal 

government-guaranteed loans and investments and 80 percent of state government-guaranteed 

loans and investments and deducts similar percentages of such guaranteed loans and investments 

when calculating the secure base amount (SBA). 

Insurance premium rates are reviewed semiannually. For 2021, the board of directors set premium 

accrual rates at its January 28, 2021 meeting at 16 basis points on average adjusted insured debt 

and continued the assessment of the 10 basis point surcharge on the average principal balance 

outstanding for nonaccrual loans and other-than-temporarily impaired investments. The board of 

directors again reviewed premiums at its June 17, 2021 meeting and voted to maintain the premium 

accrual rate on average adjusted insured debt at 16 basis points and continued the assessment of 

the 10 basis point surcharge on the average principal balance outstanding for nonaccrual loans and 

other-than-temporarily impaired investments for the remainder of 2021. In 2021, outstanding 

insured obligations increased by $30.4 billion (9.4 percent). At December 31, 2021, the total 

Insurance Fund was 1.98 percent of adjusted insured obligations.

For 2020, the board of directors set premium accrual rates at its January 30, 2020 meeting at 8 

basis points on average adjusted insured debt and continued the assessment of the 10 basis point 

surcharge on the average principal balance outstanding for nonaccrual loans and other-thantemporarily impaired investments. The board of directors again reviewed premiums at its June 25, 

2020 meeting and voted to increase the premium accrual rate on average adjusted insured debt to 

11 basis points and continued the assessment of the 10 basis point surcharge on the average principal 

balance outstanding for nonaccrual loans and other-than-temporarily impaired investments for the 

remainder of 2020. In 2020, outstanding insured obligations increased by $28.6 billion (9.7 percent). 

At December 31, 2020, the total Insurance Fund was 1.93 percent of adjusted insured obligations.

The Farm Credit Act requires if, at the end of any calendar year, the aggregate of the amounts in 

the Insurance Fund exceed the SBA, the Corporation is required to allocate to the Allocated 

Insurance Reserves Accounts (AIRAs) any excess balances less the amount that the Corporation, in 

its sole discretion, determines to be the sum of the estimated operating expenses and estimated 

insurance obligations of the Corporation for the immediately succeeding calendar year.

The total Insurance Fund did not exceed the 2 percent SBA at December 31, 2021 or 2020, and there 

were no allocations to the AIRAs for the Farm Credit System banks.

The AIRAs' balances are recorded as part of the Insurance Fund until approved for payment by the 

Corporation's board of directors. AIRAs’ balances may be used to absorb any insurance losses and 

claims. Furthermore, the board of directors has discretion to limit or restrict the AIRAs’ payments. 
Farm Credit System Insurance Corporation

Notes to the Financial Statements

F11

Note 5: Operating Lease

The Corporation is committed under a ten-year lease with the FCS Building Association for office 

space expiring on November 30, 2025. The Corporation recorded lease expense (including operating 

cost assessments) of $154 thousand and $150 thousand for 2021 and 2020, respectively. The 

following is a schedule by year of the future minimum lease payments required under this lease as 

of December 31, 2021: 

Years ending December 31,

(Dollars in thousands)

2022 $ 155

2023 158

2024 161

2025 150

$ 624

Note 6: Line of Credit

On September 24, 2013, the Corporation entered into an agreement with the Federal Financing Bank 

(the FFB), a United States government corporation subject to the supervision and direction of the 

U.S. Treasury. Pursuant to this agreement, the FFB may advance funds to the Corporation when 

exigent market circumstances make it extremely doubtful that insured System banks will be able to 

pay maturing debt obligations. The Corporation will in turn use the funds advanced by the FFB to 

provide assistance to the System banks until market conditions improve. The agreement provides 

for a short-term revolving credit facility of up to $10 billion, renewable annually and terminating 

on September 30, 2022, unless otherwise further extended.

Under the agreement, each provision of funds by the FFB is subject to certain terms and conditions. 

The interest rate for each advance will be established by the FFB at the time the respective advance 

is made. Each advance cannot have a maturity date longer than twelve months and the maturity 

date cannot be later than the final termination date of the agreement.

The Corporation paid no commitment fee to secure this line of credit. There were no amounts drawn 

on this line of credit during 2021 and 2020. 

Note 7: Retirement Plan

All permanent Corporation employees are covered by the Federal Employees Retirement System 

(FERS). The Corporation's contribution was 17.3 percent of base pay for the first nine months of 

2021 and 18.4 percent for the last three months of 2021. The Corporation's contribution was 16.0 

percent of base pay for the first nine months of 2020 and 17.3 percent for the last three months of 

2020. In addition, the Corporation automatically contributes 1 percent of base pay to the employee's 

Thrift Savings Plan account, matches the first 3 percent contributed by the employee, and matches 

one-half of the next 2 percent contributed by the employee. In 2015, the Corporation began a 401K 

plan for employees. The Corporation automatically contributes 1 percent of base pay to the 

employee's 401K account and matches the first 2 percent contributed by the employee. Retirement 

plan expenses amounted to $507 thousand in 2021 and $489 thousand in 2020. 
Farm Credit System Insurance Corporation

Notes to the Financial Statements

F12

Note 8: Related Parties

The Corporation purchases services from FCA under an Interagency Agreement, including 

examination and administrative support services. The intention of the parties as stated in the 

agreement is that specified rates and fees will reimburse the party providing services for all 

reasonable costs associated with provision of the services. The Corporation purchased services for 

2021 which totaled $358 thousand, compared with $379 thousand for 2020. 

The Corporation may also provide services to the FCA under an Interagency Agreement; however, 

the Corporation provided no services and recognized no revenue for 2021 and 2020. At December 

31, 2021 and 2020, the Corporation did not have any receivables from the FCA.

Note 9: Risk and Uncertainties Related to COVID-19 

In early 2020, an outbreak of the novel strain of coronavirus (COVID-19) emerged globally. The effect 

of the COVID-19 pandemic on the overall financial performance of the System has been limited. The 

financial performance of the System was strong during 2021 and the overall credit quality of its 

customers remained strong. Consequently, the impact of the COVID-19 pandemic on the Insurance 

Fund has also been limited and the likelihood of a loss to the Insurance Fund related to the COVID19 pandemic appears remote in the near-term.

For 2022, the extent to which the COVID-19 pandemic impacts the System, including the insured 

System banks, depends on future developments that remain highly uncertain and cannot be 

predicted. Any impact on the System could impact the Insurance Fund. Management will continue 

to actively monitor the financial condition of the System. 

Note 10: Subsequent Events

FCSIC evaluated subsequent events from the date of the statement of financial condition through 

February 15, 2022, the date at which FCSIC’s financial statements were issued. No material 

subsequent events were identified for either recognition or disclosure.
F13

Management's Report on Internal Control Over Financial Reporting 

The Farm Credit System Insurance Corporation's (FCSIC) internal control over financial reporting is 

a process effected by those charged with governance, management, and other personnel, designed 

to provide reasonable assurance regarding the preparation of reliable financial statements in 

accordance with generally accepted accounting principles in the United States of America. Our 

internal control over financial reporting includes those policies and procedures that (1) pertain to 

the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions 

and dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as 

necessary to permit preparation of financial statements in accordance with generally accepted 

accounting principles in the United States of America and that receipts and expenditures of FCSIC 

are being made only in accordance with authorizations of FCSIC management and those charged 

with governance; and (3) provide reasonable assurance regarding prevention, or timely detection 

and correction, of unauthorized acquisition, use, or disposition of FCSIC's assets that could have a 

material effect on our financial statements. 

Management of FCSIC is responsible for designing, implementing, and maintaining effective internal 

control over financial reporting. Management assessed the effectiveness of FCSIC's internal control 

over financial reporting as of December 31, 2021 using the criteria established in the Internal 

Control - Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the 

Treadway Commission (COSO). Based on that assessment, management concluded that, as of 

December 31, 2021, FCSIC's internal control over financial reporting is effective, based on the COSO 

criteria. 

Internal control over financial reporting has inherent limitations. Internal control over financial 

reporting is a process that involves human diligence and compliance and is subject to lapses in 

judgment and breakdowns resulting from human failures. Internal control over financial reporting 

also can be circumvented by collusion or improper management override. Because of its inherent 

limitations, internal control over financial reporting may not prevent, or detect and correct, 

misstatements. Also, projections of any assessment of effectiveness to future periods are subject 

to the risk that controls may become inadequate because of changes in conditions, or that the 

degree of compliance with the policies or procedures may deteriorate. 

_____________________________________ _____________________________________

Howard I. Rubin Andrew J. Grimaldi 

Chief Operating Officer Chief Financial Officer

_____________________________________ _____________________________________

Lynn M. Powalski John F. Simonson 

General Counsel Chief Risk Officer

February 15, 2022 

ANDREW 

GRIMALDI

Digitally signed by 

ANDREW GRIMALDI 

Date: 2022.02.15 08:48:59 

-05'00'

SIMONSONJ Digitally signed by SIMONSONJ LYNN POWALSKI Date: 2022.02.15 12:14:59 -05'00'

Digitally signed by LYNN 

POWALSKI 

Date: 2022.02.15 14:05:22 -05'00'

HOWARD RUBIN Digitally signed by HOWARD 

RUBIN 

Date: 2022.02.15 14:11:22 -05'00'