2022

Agency

Financial

Report
Page Intentionally Blank 
USDA | 2022 Agency Financial Report i 

USDA’s 

Non-Discrimination Statement

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA or the 

Department) civil rights regulations and policies, USDA, its Mission Areas, agencies, staff offices, 

employees, and institutions participating in or administering USDA programs are prohibited from 

discriminating based on race, color, national origin, religion, sex, gender identity (including gender 

expression), sexual orientation, disability, age, marital status, family/parental status, income derived 

from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights 

activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). 

Remedies and complaint filing deadlines vary by program or incident. 

Program information may be made available in languages other than English. Persons with disabilities 

who require alternative means of communication to obtain program information (e.g., Braille, large 

print, audiotape, or American Sign Language) should contact the responsible Mission Area, agency, or 

staff office; the USDA TARGET Center at (202) 720-2600 (voice and TTY); or the Federal Relay 

Service at (800) 877-8339. 

To file a program discrimination complaint, a complainant should complete a Form AD 3027, USDA 

Program Discrimination Complaint Form, which can be obtained online, from any USDA office, by 

calling (866) 632-9992, or by writing a letter addressed to USDA. The letter must contain the 

complainant’s name, address, telephone number, and a written description of the alleged discriminatory 

action in sufficient detail to inform the Assistant Secretary for Civil Rights about the nature and date of 

an alleged civil rights violation. The completed AD 3027 form or letter must be signed and submitted 

to USDA by: 

(1) Mail: 

U.S. Department of Agriculture 

Executive Director

Office of the Assistant Secretary for Civil Rights 

Center for Civil Rights Enforcement 

1400 Independence Avenue, SW 

Mail Stop 9430 

(2) Efax: 

(833) 256-1665 

(3) Email: 

ProgramComplaints@usda.gov

Please attach a signed AD-3027 

complaint form or letter to the email.
Page Intentionally Blank 
USDA | 2022 Agency Financial Report iii

Table of Contents

Message from Secretary Vilsack..................................................................................................1

Section I Management’s Discussion and Analysis .......................................................................5

USDA Organization Chart................................................................................................................................ 6

USDA Mission Areas and Staff Offices............................................................................................................ 7

USDA Program Performance......................................................................................................................... 10

Forward Looking Information....................................................................................................................... 13

Analysis of Financial Statements and Stewardship Information .................................................................. 15

Statement of Assurance................................................................................................................................ 34

Federal Managers’ Financial Integrity Act Report on Management Control................................................ 35

Compliance with Laws and Regulations ....................................................................................................... 40

Analysis of Systems, Control, and Legal Compliance.................................................................................... 43

Financial Management Systems Strategy ..................................................................................................... 45

Section II Financial Information ................................................................................................53

Message from the Office of the Chief Financial Officer............................................................................... 53

Independent Auditors Report....................................................................................................................... 56

Agency Response to Auditors Report........................................................................................................... 66

Financial Statements .................................................................................................................................... 67

Notes to the Financial Statements ............................................................................................................... 72

Required Supplementary Information........................................................................................................ 155

Section III Other Information..................................................................................................165

USDA Management Challenges.................................................................................................................. 165

Summary of Financial Statement Audit and Management Assurances..................................................... 194

Payment Integrity Information Act of 2019 – Improper Payments Overview Payment Integrity .............. 196

Civil Monetary Penalties............................................................................................................................. 200

Grants Program........................................................................................................................................... 215

Climate-Related Financial Risk.................................................................................................................... 216

Agency Audits Resolution Report............................................................................................................... 217

Abbreviations — Acronyms .....................................................................................................229
iv Table of Contents

Page Intentionally Blank 
USDA | 2022 Agency Financial Report 1 

Message from

Secretary Vilsack

The U.S. Department of Agriculture (USDA or the Department) respectfully submits the fiscal year 

(FY) 2022 Agency Financial Report, fulfilling our responsibility to the American people, President 

Biden, and the U.S. Congress. 

Throughout FY 2022, the U.S. Department of Agriculture touched the lives of all Americans. Each day, 

I am honored to work in partnership with the tens of thousands of dedicated public servants at USDA 

to bring meaningful change to the lives of all Americans. 

USDA aims to build an equitable, climate-smart food and agriculture economy that ensures that all 

people have the opportunity to succeed in the communities they love. As we work to realize this vision, 

our efforts continue to support farmers who feed the world, improve the health, nutrition, and quality 

of life of all Americans, and yield healthy lands, forests, and clean water. 

The effects of climate change impact all Americans. Mitigating those effects is a key goal of the BidenHarris Administration. Agriculture, forestry, and rural America are uniquely impacted by a warming 

climate, but they are also uniquely positioned to be a meaningful part of the solution. 

USDA has embarked on a department-wide effort to enact climate-smart agriculture, forestry, and rural 

clean energy policies that are voluntary, flexible, and producer-led. In service of that goal, we 

announced the new Partnerships for Climate-Smart Commodities Program, which finances pilot 

projects for U.S. agricultural and forestry products that use climate-smart practices. USDA originally 

announced $1 billion for this program through the Commodity Credit Corporation and received 

applications totaling more than $18 billion. 

With funding from the Bipartisan Infrastructure Law, USDA launched several programs to prevent and 

mitigate wildfires. Jointly with the Federal Emergency Management Agency (FEMA) and the 

Department of the Interior, USDA launched a Wildfire Mitigation and Management Commission to 

provide recommendations for federal wildland fire management. In addition, we announced 
2 Message from the Secretary

$31.1 million for 15 projects designed to reduce the risk of severe wildfires, support local economies, 

create jobs, and enhance forest and watershed health in eight states. 

Funding from the Bipartisan Infrastructure Law, has also provided $1 billion for Community Wildfire 

Defense Grants to protect communities from the effects of our increasingly devastating wildfire 

season. Also, USDA’s Forest Service invested more than $100 million in reforestation funded by the 

Repairing Existing Public Land by Adding Necessary Trees (REPLANT) Act. 

USDA has dedicated billions in funding for critical infrastructure. In partnership with the 

Environmental Protection Agency, we launched an effort to address the wastewater gap in eleven 

underserved communities lacking basic access to wastewater management. In FY 2022, USDA’s Rural 

Development agency distributed hundreds of millions in funding to improve drinking and wastewater 

infrastructure in rural areas, and more than $1.5 billion in ReConnect Program funding to expand 

access to reliable, high-speed rural broadband. 

President Biden’s Executive Order on Advancing Racial Equity and Support for Underserved 

Communities paved the way for USDA to meaningfully listen to internal and external stakeholders, 

understand where barriers to accessing USDA programs and services exist, and identify actions to 

advance equity. 

The American Rescue Plan directed the creation of our new Equity Commission, which is conducting a 

thorough review of USDA policies and programs and will provide recommendations to improve equity. 

Also, thanks to the American Rescue Plan, USDA announced $550 million in funding to support 

underserved producers, Minority-Serving institutions and NextGen Scholars, and improve land access. 

We have made targeted investments in underserved communities to resolve program inequities. In 

service of this issue, USDA announced $67 million in competitive loan updates to the Heirs’ Property 

Relending Program to resolve property ownership and succession issues. 

Internally, USDA has developed a comprehensive plan for upholding civil rights and advancing equity, 

including tribal sovereignty. We also released the Diversity, Equity, Inclusion, and Accessibility 

(DEIA) Strategic Plan. It will be guided by our first Chief Diversity and Inclusion Officer, who has 

been focused on helping USDA reflect the makeup of America. 

As we work to achieve equity within our programs and services, we have embarked on an ambitious 

agenda to make the food system of the future more fair, competitive, distributed, and resilient. USDA 

must create more and better markets and supply chains for producers and consumers. 

We must form a more level playing field for small and medium producers and a more balanced, 

equitable economy for everyone working in food and agriculture. Doing so increases farmers’ and 

ranchers’ earnings, delivers greater value to workers, and offers consumers affordable, healthy food 

produced closer to home. 
USDA | 2022 Agency Financial Report 3 

President Biden signed an executive order promoting competition in the American economy, and 

USDA took it to heart. The American Rescue Plan provided $1 billion for several programs to increase 

processing capacity. This funding includes up to $375 million for the Meat and Poultry Processing 

Expansion Program to support the expansion of independent processing plants, $100 million for the 

Food Supply Chain Loan Guarantee Program, and $32 million in grants to 167 existing processing 

facilities through the Meat and Poultry Inspection Readiness Grants Program. 

With more than $2 billion in American Rescue Plan funds, USDA announced a food systems 

transformation plan to benefit consumers, producers, and rural communities. We are using the funds to 

provide more options, increase access, and create new, more, and better markets for small and 

mid-size producers. 

This plan included $300 million for the Organic Transition Initiative to help producers enter the 

organic production market, $75 million for urban agriculture, $100 million to develop a pipeline of 

well-trained workers in the processing sector, and $400 million to create regional food business 

centers, among other programs. 

Recognizing that food and health are inherently intertwined, we understand the critical importance of 

consistent access to safe, healthy, and affordable food for the American people. We take seriously our 

responsibility to feed millions of Americans through the Special Supplemental Nutrition Program for 

Women, Infants, and Children (WIC), the Supplemental Nutrition Assistance Program (SNAP), the 

National School Lunch Program, and our other programs. 

To help schools with supply chain challenges, USDA invested more than $2 billion in Commodity 

Credit Corporation funds to purchase food for meal service programs. We also dedicated $400 million 

to create an innovative new Local Food Purchase Assistance Cooperative Agreement Program that 

allows states and tribal governments to more efficiently procure and distribute local and regional food. 

This fiscal year also saw the first major update to SNAP in 45 years, providing increased benefits to 

support real food purchasing power for more than 41 million Americans in 22 million households. 

USDA also increased the reimbursement rates for free and reduced school meals. Together, these 

increases help service providers and families continue to feed our future. 

We also announced $10 million in Farm to School Grants for 123 projects across the country. In 

addition, for the first time, the Department is empowering states with $60 million in non-competitive 

grants to develop stronger and sustainable Farm to School programs over the next 4 years. 

Following Abbott Nutrition’s voluntary recall of certain powder infant formula products and resulting 

national supply shortages, USDA provided maximum flexibility to WIC State agencies - including 

regulatory waivers – to support the agencies in their efforts to ensure WIC participant have access to 

infant formula. We worked with state agencies to allow those who need formula to access it without 

additional expense. Working with the White House, Department of Defense, and Department of Health 

and Human Services, USDA assisted President Biden’s Operation Fly Formula, which has brought 

millions of cans of formula into the country from abroad. 
4 Message from the Secretary

Each year brings unique challenges, and I am truly proud of the many ways USDA employees across 

the Nation have stepped up during 2022 while we continue to rebuild the USDA workforce, amidst a 

global pandemic and make USDA the best place to work.. As always, they get the job done on behalf 

of Americans and support and grow our economy while strengthening rural communities. 

The Department’s management team continues to oversee USDA’s assessment of internal control over 

its programs, operations, financial systems, and financial reporting. The Department’s work is 

consistent with the provisions of the Federal Managers’ Financial Integrity Act (FMFIA) and the 

Federal Financial Management Improvement Act (FFMIA). 

USDA’s prioritization of and continuous monitoring and remediation efforts allow us to provide 

taxpayers with reasonable assurance that this report is based on sound, accurate data. Despite USDA's 

many successes, continued improvement is needed to remediate the Department existing material 

weakness and financial system noncompliance. To accomplish this goal, management continues to 

implement corrective action plan activities. Therefore, I provide a modified statement of assurance 

that, except for the areas in need of improvement as described in the Management Assurances section 

of this report, USDA’s internal control over operations, financial systems, and financial reporting meets 

the objectives of FMFIA and FFMIA. 

The financial and performance information presented herein is complete and accurate, and is in 

accordance with law and Office of Management and Budget guidance. 

The USDA workforce is continues serving our customers across our country, providing important 

services to those who rely on us. Together, we can continue to deliver effective service while finding 

more ways to serve as efficient stewards of taxpayer dollars. 

Thank you for your interest in the Department. 

Thomas J. Vilsack

Secretary of Agriculture

November 14, 2022 
USDA | 2022 Agency Financial Report 5 

Section I 

Management’s Discussion 

and Analysis
USDA Organization Chart

6 Section I | Management’s Discussion and Analysis

• FPAC Business Center

• Farm Service Agency

• Risk Management 

Agency

• Natural Resources 

Conservation Service

Under Secretary for 

Farm Production 

and Conservation

• Food & Nutrition 

Service

Under Secretary for 

Food, Nutrition, 

and Consumer 

Services

• Food Safety and 

Inspection Service

Under Secretary for 

Food Safety

• Agricultural 

Marketing Service

• Animal & Plant 

Health Inspection 

Service

Under Secretary for 

Marketing and 

Regulatory 

Programs

• Forest Service

Under Secretary for 

Natural Resources 

and Environment

• Rural Housing 

Service

• Rural Utility Service

• Rural Business 

Cooperative Service

• Higher Education 

• Strategic Initiatives

• 2501 Grants 

Under Secretary for 

Rural 

Development

• Office of the Chief 

Scientist

• Agricultural 

Research Service

• National Agricultural 

Statistical Service

• National Institute of 

Food & Agriculture

• Economic Research 

Service

Under Secretary for 

Research, 

Education, and 

Economics

• Foreign Agricultural 

Service

• US Codex Office

Under Secretary for 

Trade and Foreign 

Agricultural Affairs

Inspector 

General

General 

Counsel

Office of the 

Chief 

Financial 

Officer

Chief 

Economist

Office of the 

Executive 

Secretariat

Office of 

Budget and 

Program 

Analysis

Office of 

Communications

Office of 

Tribal 

Relations

Office of 

Partnerships 

& Public 

Engagement

Office of 

Hearings 

and Appeals

Assistant Secretary for 

Civil Rights

Assistant Secretary for 

Congressional Relations

Assistant Secretary for 

Administration

Office of the 

Chief 

Information 

Officer

SECRETARY

Deputy Secretary
USDA | 2022 Agency Financial Report 7 

USDA Mission Areas and Staff Offices

Farm Production and Conservation

Farm Production and Conservation (FPAC) is the U. S. Department of Agriculture’s (USDA or the 

Department) focal point for the Nation’s farmers, ranchers, and other stewards of private agricultural 

and non-industrial private forest lands. FPAC agencies implement programs designed to mitigate the 

significant risks of farming through crop insurance, conservation programs, farm safety net programs, 

lending, and disaster programs. 

• Farm Production and Conservation Business Center (FPAC-BC) 

• Farm Service Agency (FSA) 

• Natural Resources Conservation Service (NRCS) 

• Risk Management Agency (RMA) 

Food, Nutrition, and Consumer Services

Food, Nutrition, and Consumer Services works to harness the Nation’s agricultural abundance to 

reduce food insecurity and improve nutrition security in the United States. Its operating agency, the 

Food and Nutrition Service, administers federal domestic nutrition assistance programs and includes 

the Center for Nutrition Policy and Promotion, which links scientific research to the nutrition needs of 

consumers through science-based dietary guidance, nutrition policy coordination, and nutrition 

education. 

• Food and Nutrition Service (FNS) 

Food Safety

Food Safety and Inspection Service is the USDA public health agency responsible for protecting the 

public’s health by ensuring the safety of meat, poultry, and egg products. Food Safety and Inspection 

Service (FSIS) ensures food safety through the authorities of the Federal Meat Inspection Act, the 

Poultry Products Inspection Act, and the Egg Products Inspection Act, as well as humane animal 

handling through the Humane Methods of Slaughter Act. 

• Food Safety and Inspection Service 
8 Section I | Management's Discussion and Analysis

Marketing and Regulatory Programs

Marketing and Regulatory Programs (MRP) facilitate domestic and international marketing of U.S. 

agricultural products, protect U.S. plant and animal health, regulate genetically engineered organisms, 

administer the Animal Welfare Act, and carry out wildlife damage management activities. MRP 

agencies are active participants in setting national and international standards. 

• Agricultural Marketing Service (AMS) 

• Animal and Plant Health Inspection Service (APHIS) 

Natural Resources and Environment

The mission of Natural Resources and Environment is to sustain the health, diversity, and productivity 

of the Nation’s forests and grasslands to meet the needs of present and future generations. It carries out 

its mission in partnership with States, Tribes, and communities across the country who steward the 

Nation’s forest and grasslands.

• Forest Service (FS) 

Research, Education, and Economics

The Research, Education, and Economics Services are dedicated to the creation of a safe, sustainable, 

competitive U.S. food and fiber system, as well as strong communities, families, and youth through 

integrated research, analysis, and education. 

• Agricultural Research Service (ARS) 

• Economic Research Service (ERS) 

• National Agricultural Statistics Service (NASS) 

• National Institute of Food and Agriculture (NIFA) 

• Office of the Chief Scientist (OCS) 

Rural Development

Rural Development fosters opportunity and economic security for people and communities in rural 

America through a broad range of investments. These investments open doors to better jobs and create 

access to innovation and technology while promoting the promise of rural prosperity, equity, and 

climate resilience. The mission area is a catalyst for locally-driven economic development strategies 

that build on the diverse assets and needs of rural places, including improving high-speed internet 

access; providing affordable rural housing; connecting rural skill sets to jobs of the future; modernizing 
USDA | 2022 Agency Financial Report 9 

roads, bridges, and water systems; and ensuring communities have access to health care. Rural 

Development provides tools and resources such as loans, grants, and strong community partnerships 

that ensure rural families, businesses, and communities can prosper today and in the future. 

• Rural Business Cooperative Service 

• Rural Utilities Service 

• Rural Housing Service 

Trade and Foreign Agricultural Affairs

Trade and Foreign Agricultural Affairs’ (TFAA) role is to provide our farmers and ranchers with 

opportunities to compete in the global marketplace. TFAA is the Department’s lead on trade policy, 

with the primary responsibility to ensure USDA speaks with a unified voice on international 

agriculture issues domestically and abroad. Within TFAA, the Foreign Agricultural Service is the lead 

U.S. agency tasked with promoting exports of U.S. agricultural products through market intelligence, 

trade policy, trade capacity building, and trade promotion programs. This work is carried out by staff in 

Washington as well as a global network of nearly 100 offices covering approximately 180 countries. 

Also within TFAA, the U.S. Codex Office coordinates U.S. participation in the Codex Alimentarius 

Commission, a joint intergovernmental body of the Food and Agriculture Organization of the United 

Nations (FAO) and the World Health Organization (WHO) that sets international food standards while 

protecting consumer health and ensuring fair trade practices. 

• Foreign Agricultural Service 

• US Codex Office 

USDA Staff Offices

Our offices provide support to Department officials and employees at all levels, and they support our 

programs and services by working with our agencies, Congress, organizations, and tribal governments. 

To learn more about USDA Agencies and Mission Areas, please visit the USDA Staff Offices website. 

The most current data can be found on the USDA Website. 
10 Section I | Management's Discussion and Analysis

USDA Program Performance

Changes in Reporting USDA’s Performance

In accordance with Office of Management and Budget (OMB) Circular A-136 (revised June 2022), 

the Office of Budget and Program Analysis (OBPA) is changing how it reports on performance in the 

Agency Financial Report (AFR). For reasons explained below, the U.S. Department of Agriculture 

(USDA or the Department) will no longer report a summary of key performance indicators (KPIs) and 

related performance information in the AFR. 

Circular A-136 states that the Management’s Discussion and Analysis (MD&A) “should minimize 

duplicative reporting with the Annual Performance Report (APR).”1 The Circular also acknowledges 

the longer time needed to collect and validate performance data and the different publication dates of 

these reports. Because the AFR is published three months prior to the APR, OBPA provides a partial 

data set that reflects performance through the third quarter, to the extent that quarterly data are 

available. Almost half of USDA’s KPIs are reported annually, not quarterly. 

OBPA is particularly concerned that the discrepancies between the performance data reported in the 

AFR and APR could create unnecessary confusion or, worse, misinterpretation of the data. For these 

reasons, OBPA has determined that protecting the quality and integrity of its performance data 

supersedes the need to follow the approach of past reports. OBPA continues to assess how other federal 

agencies report on performance in their AFRs and collaborate with the Office of Chief Financial 

Officer staff to ensure full compliance with Circular A-136. 

USDA’s Mission, Vision, and Strategic Plan

USDA Mission

To serve all Americans by providing effective, innovative, science-based public policy leadership in 

agriculture, food and nutrition, natural resource protection and management, rural development, and 

related issues with a commitment to deliver equitable and climate-smart opportunities that inspire and 

help America thrive.

USDA Vision

An equitable and climate-smart food and agriculture economy that protects and improves the health, 

nutrition, and quality of life of all Americans; yields healthy land, forests, and clean water; helps rural 

America thrive; and feeds the world. 

1 Circular A-136, "Financial Reporting Requirements," Revised June 3, 2022, p. 13.
USDA | 2022 Agency Financial Report 11

USDA FY 2022-2026 Strategic Plan

In March 2022, USDA published its FY 2022-2026 Strategic Plan which outlines the long-term goals 

and objectives USDA hopes to accomplish and what actions the agency will take to realize those goals. 

The Strategic Plan provides the context for decisions about performance goals, priorities, and budget 

planning, and the framework for the detail provided in the APR and Annual Performance Plan (APP). 

The Strategic Plan focuses on six strategic goals supported by 21 strategic objectives, as highlighted 

below. In addition, the Strategic Plan is guided by five crosscutting priorities that inform USDA’s work 

and are woven through the Strategic Plan. 

USDA FY 2022-2026 Strategic Plan 

Priorities

Addressing Climate Change via 

Climate Smart Agriculture, Forestry 

& Renewable Energy 

Advancing Racial Justice, 

Equity & Opportunity 

Creating More & Better Market 

Opportunities for Producers and 

Consumers al Home and Abroad 

Tackling Food & Nutrition 

Insecurity While 

Maintaining a Safe Food 

Supply 

Making USDA a Great Place 

to Work for Everyone 

Strategic 

Goals

1 

Combat Climate Change 

to Support America's 

Working Lands , Natural 

Resources. and 

Communities 

2 

Ensure America's 

Agricultural System is 

Equitable, Resilient, and 

Prosperous 

3 

Foster an Equitable and 

Competitive Marketplace 

for All Agricultural 

Producers 

4 

Make Safe. Nutritious 

Food Available to All 

Americans 

5 

Expand Opportunities for 

Economic Development 

and Improve Quality of 

Life In Rural and Tribal 

Communities

6 

Attract, Inspire, and 

Retain an Engaged and 

Motivated Workforce 

that's Proud to 

Represent USDA 

Strategic 

Objectives

• Use Climate-Smart Management and Sound Science to Enhance 

the Health and Productivity of 

Agricultural Lands 

• Lead Efforts to Adapt to the to the Consequences of Climate Change in Agriculture and Forestry 

• Restore, Protect, and Conserve 

Watersheds to Ensure Clean, 

Abundant and Continuous Provisions of Water Resources 

• Increase Carbon Sequestration, 

Reduce Greenhouse Gas 

Emissions, and Create Economic Opportunities (and Develop LowCarbon Energy Solutions) 

• Protect Plant and Animal 

Health by Maximizing Major 

Diseases, Pests, and 

Conflicts 

* Build Resilient Food 

Systems, Infrastructure, and 

Supply Chain 

• Foster Agricultural Innovation 

* Foster Sustainable Economic Growth by 

Promoting Innovation, Building 

Resiliency to Climate Change, and 

Expanding Renewable Energy 

• Expand Markets for Emerging 

Technologies, Sustainable Products, 

and Novel Products 

• Expand All Producers' Access to Global 

Markets Through Negotiation and 

Enforcement of Trade Agreements 

* Expand International Marketing 

Opportunities and Build 

of Technical Assistance and Capacity 

Building 

• Increase Food Security Through Assistance and Access to Nutritious 

and Affordable Food 

• Encourage Healthy Dietary Choices Through 

Data-Driven, Flexible, Customer-Focused Approaches 

• Prevent Foodborne Illness and 

Protect Public Health 

* Improve Rural and Tribal Community 

Infrastructure, including Affordable EConnectivity, Cornerstone Community 

Facilities, Sustainable and Reliable 

Power, and Clean and Safe Water and 

Sewer Systems 

• Boost the Financial Security of Rural 

and Tribal Communities through 

Access to Affordable Housing 

* Increase Capacity, Sustainability, and 

Economic Vitality in Rurual & Triba

Communities 

* Promote Environmental Justice by Maximizing 

Sustainable and Green 

Economic Development in Rural and 

Trival Communities 

• Foster a Culture of Civil Rights, 

Diversity, Equity, Inclusion, 

Accessibility, Transparency, 

and Accountability 

· Establish a Customer-Centric, Inclusive, High-Performing 

Workforce that is 

Representative of America and 

the Communities We Serve 

• Promote USDA Operational Excellence Through Better Use 

of Technology and Shared 

Solutions 
12 Section I | Management's Discussion and Analysis

Performance Measures

The FY 2022-2026 Strategic Plan is supported by performance measures, or KPIs, that measure 

progress toward achieving the strategic goals and objectives. The following graph depicts the fiscal 

year (FY) 2022 Q3 status of USDA’s KPIs, organized by strategic goal. 

USDA’s full FY 2022 performance results will be presented in the joint FY 2024 APP/FY 2022 APR. 

The joint APP/APR details USDA’s plans for progress toward achieving the strategic goals and 

objectives described in the USDA FY 2022-2026 Strategic Plan, including plans on agency priority 

goals. This report will be posted on the USDA Our Performance website concurrent with the 

publication of the FY 2024 President’s Budget in February 2023. 

FY 2022 Q3 Status of USDA KPIs

3 3

4

0

2

1

4

1

0 0

1 1

6

1 1

0

3

1

8

1

2

6

0

4

 

 

 

 

Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6
USDA | 2022 Agency Financial Report 13

Forward Looking Information

Future Looking Information

Farmers and ranchers operate in highly competitive markets, both domestically and internationally. 

Rapid shifts in consumer demands associated with quality, convenience, taste, and nutrition dictate that 

farming, ranching, and marketing infrastructures become more fluid and responsive. National security 

is a significant, ongoing priority for the U.S. Department of Agriculture (USDA or the Department). 

The Department’s science research, education, and extension services will continue to be the 

foundation for understanding developments and making advances in solving agricultural and societal 

challenges. USDA is working with the U.S. Department of Homeland Security to help protect 

agriculture from intentional and accidental acts that may impact America’s food supply or natural 

resources. 

External Factors that Challenge USDA’s Ability to Achieve its Goals Include the 

Following:

a. Operational complications in human capital, including hiring and recruitment, competitive and 

equitable compensation, training, ongoing issues arising from the Coronavirus Disease 2019 

(COVID-19) public health emergency, and an increasing gap between opportunities and 

candidate pools; 

b. Record-breaking wildfires and other weather-related hardships, including disasters related to 

the increasing intensity and duration of extreme weather and climate change, both domestically 

and internationally; 

c. The risk of catastrophic fire, depending on weather, drought conditions, and the expanding 

number of communities in the wildland-urban interface; 

d. Non-weather-related hardships and other uncontrollable events, both domestically and 

internationally;

e. Domestic and international macroeconomic factors, including inflation, consumer purchasing 

power, the strength of the U.S. dollar, and political changes abroad that could impact domestic 

and global markets significantly at any time;

f. Sharp fluctuations in farm prices, interest rates, and unemployment that could impact the ability 

of farmers, other rural residents, communities, and businesses to qualify for credit and manage 

debt; 

g. The increased movement of people and goods, which provides the opportunity for crop and 

animal pests and diseases to move quickly across domestic and international boundaries; and 

h. The ability of the public and private sectors to collaborate effectively on food safety, security, 

and related emergency preparedness efforts.
14 Section I | Management's Discussion and Analysis

Mitigation Strategies: 

USDA has made progress in fiscal year (FY) 2022 toward its mitigation strategies through its 

Enterprise Risk Management (ERM) program. Specifically, the Department has led large-scale efforts 

across mission areas to identify the top enterprise risks, risk drivers, mitigation strategies, and key risk 

indicators. In FY 2023, USDA will continue to strengthen its ERM program and update the 

department-wide risk profile, including risk drivers and risk mitigation strategies. USDA will continue 

to advance the mitigation strategies in FY 2023, with periodic updates to the Deputy Secretary during 

Quarterly Strategic Reviews.

Summary of Efforts to Assess, Measure, and Mitigate Climate-Related Risks

Building on the framework established in USDA’s Action Plan for Climate Adaptation and Resilience, 

12 USDA agencies and select staff offices released Agency-level Climate Adaptation Plans in July 

2022 (see Climate-Related Financial Risk Section for more information). In these Plans, each 

organization considered the effects of climate change on their mission delivery, including increased 

program demands and financial risk, and developed adaptation actions to manage and integrate these 

risks into their planning, programs, operations, and management. 

Climate risks to physical assets are important considerations for the Forest Service, Agricultural 

Research Service (ARS), and the Office of Property and Environmental Management (OPEM). 

The OPEM Adaptation Plan describes how they will integrate climate considerations into sustainability 

and operational policies and guidance to address climate-related threats to USDA facilities, fleet, and 

natural and built infrastructure. ARS is evaluating and upgrading building design and planning to 

account for climate risks, including by positioning facilities to have energy redundancy. The Forest 

Service will continue to assess risks using vulnerability assessments and geospatial tools and reduce 

risks through repair, replacement, or relocation. 

Financial-related climate risks are of particular concern for the Farm Service Agency (FSA), the Risk 

Management Agency (RMA), and agencies within the Rural Development (RD) Mission Area. 

The FSA Climate Adaptation Plan describes how they will leverage FSA program data to identify and 

manage climate risks to their loan and disaster assistance programs. RMA will continue to update 

program premium rates, yields, dates, area maps, and practice availability and procedure to reflect 

climate-related changes in risk and agricultural practices. RD will overlay climate risks, social 

vulnerability, and other resilience measures with the RD investment portfolio to better enable 

incorporation of climate risk into its housing and infrastructure portfolio. 

USDA is participating in an ongoing interagency effort, in response to Executive Order 14030 

Climate-Related Financial Risk Sec. 5(c), with the Departments of Housing and Urban Development 

(HUD) and Veterans Affairs (VA), to better integrate climate-related financial risk into underwriting 

standards, loan terms and conditions, and asset management and servicing procedures. The work of 

this interagency task force is initially focused on single family housing guaranteed loan programs, 

which are common across the three Departments.
USDA | 2022 Agency Financial Report 15

Analysis of Financial Statements and 

Stewardship Information

Consolidated Balance Sheets

Total Assets

Total assets for fiscal year (FY) 2022 were $415,885 million, compared to $361,131 million for 

FY 2021, an increase of $54,754 million, or 15 percent. The following exhibit presents FY 2022 

total assets.

Exhibit 1: Total Assets ($ in millions)

Loans Receivable, Net, is one of the largest assets on the U.S. Department of Agriculture (USDA or the 

Department) Balance Sheet. Rural Development (RD) offers both direct and guaranteed loan products 

for rural housing and rural business infrastructure. These products represent 85 percent of the total 

Department loan programs. Loan programs administered by the Farm Service Agency (FSA) represent 

13 percent of the total. FSA supports farmers who are temporarily unable to obtain private, commercial 

credit. The remaining 2 percent represents commodity loans and credit programs administered by the 

Commodity Credit Corporation (CCC). These loans are used to improve economic stability and 

provide an adequate supply of agricultural commodities. CCC credit programs provide international 

food assistance, expand international markets, and provide domestic low-cost financing to protect farm 

income and prices. 

68%

28%

2% 1% 1%

Fund	Balance	with	Treasury	-	$284,081

Loans	Receivable,	Net	-	$118,493

Accounts	Receivable,	Net	-	$7,201

General	Property,	Plant	and	Equipment,	Net	-	$2,835

Negative	Liability	for	Loan	Guarantees	-	$1,939

Advances	and	Prepayments	-	$545

Cash	and	Other	Monetary	Assets	-		$492

Investments	-	$271

Inventory	and	Related	Property,	Net	-	$28
16 Section I | Management's Discussion and Analysis

The following exhibit presents significant changes in total assets. 

Exhibit 2: Significant Changes in Total Assets ($ in millions)

Increase in Fund Balance with Treasury of $46,471 mainly due to RD ($14,469) for funds provided in 

the Inflation Reduction Act of 2022 and Infrastructure Investment and Jobs Act; Agricultural 

Marketing Service (AMS) ($11,568) custom receipts received from the Department of Homeland 

Security and Commodity Purchases-Emergency Food Providers; Forest Service (FS) ($8,595) for 

funds provided in new legislation due to more inflation, infrastructure, and disaster relief; and Natural 

Resources Conservation Service (NRCS) ($6,013) for funds provided in Partnership in Climate-Smart 

Commodities and Infrastructure Investment and Jobs Act. 

Increase in Accounts Receivable of $1,528 mainly due to Risk Management Agency (RMA) ($1,162). 

Higher reported premiums for certain crops contributed to the higher accounts receivable in FY 2022. 

The higher premium revenue is largely related to higher coverage amounts resulting from higher crop 

prices (corn, wheat, soybeans, cotton, and increased participation in certain insurance products (rainfall 

index plans and livestock plans). The increased participation in rainfall index plans can be attributed to 

program improvements and the desire for producers to participate during the extreme dry conditions. 

Agricultural commodities saw some upward pressure amid supply chain disruptions and high 

transportation costs that are contributing to inflation throughout the economy. Drought in the western 

U.S. and elsewhere in the world has also driven prices higher. 

Increase in Negative Liability for Loan Guarantees of $1,338 mainly due to RD downward reestimates 

in the the Guaranteed Single-Family Housing Section 502 Program and the Guaranteed Multi-Family 

Housing Section 538 Program. The large downward reestimate for these years is attributed to a 

decrease in forecasted default claims. These changes were driven by the updated borrower source data 

which created an improved macroeconomic outlook. 

$284,081

$7,201 $1,939

$237,610

$5,673 $601

2022 2021

Fund Balance with Treasury Accounts Receivable, Net Negative Liability for Loan 

Guarantees
USDA | 2022 Agency Financial Report 17

Total Liabilities

Total liabilities for FY 2022 were $192,890 million, compared to $184,678 million for FY 2021, an 

increase of $8,212 million, or 4 percent. The following exhibit presents FY 2022 total liabilities. 

Exhibit 3: Total Liabilities ($ in millions)

Debt is the single largest liability on USDA’s balance sheet. It represents amounts owed primarily to 

Treasury by CCC, FSA and RD. For RD, the debt primarily represents financing to support electric and 

housing loan programs which represent 76 percent of the total debt. For CCC, the debt primarily 

represents financing for price support, export credit guarantees, disaster programs and loans related to 

farm storage facilities which represent 11 percent of the total debt. For FSA, the debt primarily 

represents financing to support direct and guaranteed loan programs, with the majority supporting 

operating, ownership, and emergency loans which represent 13 percent of the total debt. 

Other liabilities include Repayable Advances, Liquidating Fund Balances, Due to the General Fund, 

Grants, Subsidies, and Contributions, and Conservation Reserve Program. See Note 16: Other 

Liabilities for additional information. 

72%

12%

9%

4%

2% 1%

Debt	-	$139,187

Other	-	$23,623

Insurance	and	Guarantee	Program	Liabilities	-	$17,325

Benefits	Due	and	Payable	-	$8,479

Accounts	Payable	-	$2,524

Federal	Employee	Benefits	Payable	-	$1,334

Environmental	and	Disposal	Liabilities	-	$241

Advances	from	Others	and	Deferred	Revenue	-	$177
18 Section I | Management's Discussion and Analysis

The following exhibit presents significant changes in total liabilities.

Exhibit 4: Significant Changes in Total Liabilities ($ in millions)

Increase in Debt of $6,366 mainly due to RD for credit programs. 

Increase in Insurance and Guarantee Program Liabilities of $3,099 due to RMA. The major 

components impacting the higher insurance liabilities for FY 2022 were (1) higher projected 

indemnities caused by widespread severe drought and excessive heatwaves; (2) larger underwriting 

gains for Report Year (RY) 2021 compared to RY 2020. In addition, RY 2021 had much more 

favorable conditions that resulted in an overall loss ratio of 0.69 for standard policies compared to 

0.85 for RY 2020. RY 2020 experienced higher levels of flooding and excess moisture; (3) higher 

unearned premiums, the result of higher rates due to higher crop prices and program participation rates. 

Decrease in Other Liabilities of $1,304 mainly due to FSA ($2,208) American Rescue Plan Act of 2021 

accrual was reversed as Section 1005 was repealed in Sec. 22008 of the Inflation Reduction Act of 

2022 and CCC ($1,866) Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) program 

accruals were less because of nationwide rising prices across almost every crop except peanuts; offset 

by an increase of $3,197 at CCC due to a financing event that didn't occur until FY 2023. 

$139,187

$17,325

$23,623

$132,821

$14,226

$24,927

2022 2021

Debt Insurance and Guarantee Program 

Liabilities

Other
USDA | 2022 Agency Financial Report 19

Consolidated Statements of Net Cost

Net Cost of Operations

Net cost of operations for FY 2022 was $244,628 million, compared to $234,146 million for FY 2021, 

an increase of $10,482 million, or 4 percent. 

The following exhibit presents FY 2022 net cost of operations by mission area. 

Exhibit 5: Net Cost of Operations by Mission Area ($ in millions)

The following exhibit presents significant changes in net cost of operations. 

Exhibit 6: Significant Changes in Net Cost of Operations ($ in millions)

Increase in Food, Nutrition, and Consumer Services of $29,181 mainly due to Child Nutrition and 

Supplemental Nutrition Assistance Programs. Expenditures increased due to waivers that increased 

meal payment rates and percentage of free meals. Supplemental Nutrition Assistance Program (SNAP) 

benefits higher due to revision of the Thrifty Food Plan. 

79%

13%

3%

2% 1% 1% 1%

Food,	Nutrition,	and	Consumer	Services	-	$192,370

Farm	Production	and	Conservation	-	$32,073

Natural	Resources	and	Environment	-	$8,291

Marketing	and	Regulatory	Programs	-	$3,731

Research,	Education,	and	Economics	-	$3,413

Rural	Development	-	$1,597

Staff	Offices	-	$1,578

Food	Safety	-	$1,128

Trade	and	Foreign	Agricultural	Affairs	-	$447

$192,370

$32,073

$3,731

$163,189

$50,353

$5,828

2022 2021

Food, Nutrition, and Consumer 

Services

Farm Production and Conservation Marketing and Regulatory Programs
20 Section I | Management's Discussion and Analysis

Decrease in Farm Production and Conservation of $18,280 mainly due to FSA decline in Coronavirus 

Food Assistance and Pandemic Assistance Programs are only processing payments for share 

equalization in FY 2022, American Rescue Plan accrual was reversed as Section 1005 was repealed in 

Sec 22008 of the Inflation Reduction Act of 2022, and completion of Sugar Beet Cooperative Grant 

and Georgia Block Grant under the Wildfire and Hurricane Indemnity Programs. Increase in new 

Emergency Relief Programs. CCC accrual for ARC/PLC was less due to nationwide rising prices 

across almost every crop except peanuts. 

Decrease in Marketing and Regulatory Programs of $2,097 mainly due to AMS receiving less funding 

for Coronavirus Disease 2019 (COVID-19) Food Box Distribution Program. 

Combined Statements of Budgetary Resources

Budgetary Resources

USDA receives most of its funding from appropriations authorized by Congress and administered by 

the U.S. Department of the Treasury. Total budgetary resources consist of the balance at the beginning 

of the year, appropriations received during the year, spending authority from offsetting collections, and 

other budgetary resources. 

Total budgetary resources were $465,116 million for FY 2022 compared to $424,382 million in 

FY 2021, an increase of $40,734 million, or 10 percent. The following exhibit presents FY 2022 total 

budgetary resources by mission area. 

Exhibit 7: Total Budgetary Resources by Mission Area ($ in millions)

17% 61%

11%

5%

3%

2% 1%

Food,	Nutrition,	and	Consumer	Services	-	$283,550

Farm	Production	and	Conservation	-	$79,397

Rural	Development	-	$52,000

Natural	Resources	and	Environment	-	$22,018

Marketing	and	Regulatory	Programs	-	$12,596

Staff	Offices	-	$7,341

Research,	Education,	and	Economics	-	$5,859

Food	Safety	-	$1,604

Trade	and	Foreign	Agricultural	Affairs	-	$751
USDA | 2022 Agency Financial Report 21

The following exhibit presents significant changes in total budgetary resources. 

Exhibit 8: Significant Changes in Total Budgetary Resources ($ in millions)

Increase in Rural Development of $16,076 is mainly due to funding for the new Inflation Reduction Act.

Increase in Natural Resources and Environment of $8,315 is mainly due to funding for the new 

Inflation Reduction Act and Infrastructure, Disaster, Forest Service Restoration Trust Fund and 

National Parks and Public Land Legacy Restoration Fund. 

Increase in Marketing and Regulatory Programs of $1,983 million mainly due to AMS funding for the 

Commodity Purchases-Emergency Food Providers program. 

Net Outlays

Net Outlays were $245,235 million for FY 2022, compared to $235,218 million in FY 2021, an 

increase of $10,017 million or 4 percent. The following exhibit presents FY 2022 net outlays by 

mission area.

Exhibit 9: Net Outlays by Mission Area ($ in millions)

$52,000

$22,018

$12,596

$35,924

$13,703

$10,613

2022 2021

Rural Development Natural Resources and Environment Marketing and Regulatory Programs

78%

14%

3%

2%

1% 1% 1%

Food,	Nutrition,	and	Consumer	Services	-	$192,290

Farm	Production	and	Conservation	-	$34,112

Natural	Resources	and	Environment	-	$7,667

Marketing	and	Regulatory	Programs	-	$4,400

Research,	Education,	and	Economics	-	$3,469

Rural	Development	-	$1,407

Food	Safety	-	$1,129

Trade	and	Foreign	Agricultural	Affairs	-	$403

Staff	Offices	-	$358
22 Section I | Management's Discussion and Analysis

The following exhibit presents significant changes in net outlays by mission area. 

Exhibit 10: Significant Changes in Net Outlays ($ in millions)

Increase in Food, Nutrition, and Consumer Services of $25,732 mainly due to Child Nutrition and 

Supplemental Nutrition Assistance Programs. Expenditures increased due to waivers that increased 

meal payment rates and percentage of free meals. SNAP benefits higher due to revision of the 

Thrifty Food Plan. 

Decrease in Farm Production and Conservation of $13,397 mainly due to FSA decline in Coronavirus 

Food Assistance and Pandemic Assistance Programs are only processing payments for share 

equalization in FY 2022, American Rescue Plan accrual was reversed as Section 1005 was repealed in 

Sec 22008 of the Inflation Reduction Act of 2022, and completion of Sugar Beet Cooperative Grant 

and Georgia Block Grant under the Wildfire and Hurricane Indemnity Programs. Increase in new 

Emergency Relief Programs. CCC accrual for ARC/PLC was less due to nationwide rising prices 

across almost every crop except peanuts. 

Decrease in Marketing and Regulatory Programs of $1,845 mainly due to AMS receiving less funding 

for COVID-19 Food Box Distribution Program. 

$192,290

$34,112

$4,400

$166,558

$47,509

$6,245

2022 2021

Food, Nutrition, and Consumer 

Services

Farm Production and Conservation Marketing and Regulatory Programs
USDA | 2022 Agency Financial Report 23

COVID-19 

USDA received additional funding of $29,300 million to prevent, prepare for, or respond to COVID-19 

(i.e., coronavirus disease 2019) through the Consolidated Appropriations Act, 2021. 

The Consolidated Appropriations Act, 2021 provided funding for, extended, and set out policies for 

various programs and activities, including COVID-19 economic relief measures. It extended 

modifications to federal nutrition assistance programs for children, pregnant women, and older adults 

and provided funding for programs to support agricultural producers, growers, and processors. 

This funding was in addition to funding received through the Coronavirus Aid, Relief, and Economic 

Security (CARES) Act, Families First Coronavirus Response Act in FY 2020, and American Rescue 

Plan Act of 2021. The unobligated unexpired balances from prior year, new budgetary authority and 

recissions and other changes to budgetary resources was $41,549 million. Total obligations and outlays 

were $30,693 million and $30,027 million, respectively. Total amount remaining to be obligated is 

$10,856 million. 

See Note 26, COVID-19 Activity for financial impact.

Stewardship Investments

Stewardship investments are substantial investments made by the Federal Government for the benefit 

of the Nation but are not physical assets owned by the Federal Government. When incurred, they are 

treated as expenses in determining the net cost of operations. However, these items merit special 

treatment so that users of Federal financial reports know the extent of investments that are made for 

long-term benefit. Such investments are measured in terms of expenses incurred for non-Federal 

physical property, human capital, and research and development. The following exhibit presents a 

comparison of stewardship investments.
24 Section I | Management's Discussion and Analysis

Exhibit 11: Comparison of Stewardship Investments ($ in millions)

Stewardship Investments FY 2022 Expense FY 2021 Expense

Non-Federal Physical Property:

Food and Nutrition Service

Supplemental Nutrition Assistance Program $ 58 $ 77

National Institute of Food and Agriculture

Extension 1890 Facilities Program 22 22

Total Non-Federal Property $ 80 $ 99

Human Capital:

National Institute of Food and Agriculture

Higher Education and Extension Programs $ 671 $ 648

Food and Nutrition Service

Supplemental Nutrition Assistance Program 92 103

Agricultural Research Service

National Agricultural Library 32 29

Risk Management Agency

Risk Management Education 4 1 

Natural Resources Conservation Service

National Volunteer Program 1 1 

Total Human Capital $ 800 $ 782

Research and Development:

Agricultural Research Service

Human Nutrition $ 122 $ 119

New Products/Product Quality/Value Added 127 120

Livestock Production 135 124

Crop Production 325 300

Food Safety 121 116

Livestock Protection 144 127

Crop Protection 235 223

Environmental Stewardship 272 251

National Bio and Agro-Defense Facility 120 81

National Institute of Food and Agriculture 

Land-grant University System 974 927

Forest Service 272 269

Economic Research Service

Economic and Social Science 89 85

National Agricultural Statistics Service

Statistical 11 9 

Natural Resources Conservation Service

Plant Materials Centers 12 10

Soil Survey Research 3 3 

Total Research and Development $ 2,962 $ 2,764
USDA | 2022 Agency Financial Report 25

Non-Federal Physical Property

Food and Nutrition Service (FNS)

FNS’ non-Federal physical property consists of computer systems and other equipment obtained by 

State and local governments for the purpose of administering SNAP. FNS’ non-Federal physical 

property also consists of computer systems and other equipment obtained by the State and local 

governments for the purpose of administering the Special Supplemental Nutrition Program for Women, 

Infants, and Children. 

National Institute of Food and Agriculture (NIFA)

The Extension 1890 facilities program supports the renovation of existing buildings and the 

construction of new facilities as well as computers and equipment purchases that permit faculty, 

students, and communities to benefit fully from the partnership between USDA and the 1890 

Land-Grant Universities. 

Human Capital

National Institute of Food and Agriculture

The higher education programs include graduate fellowship grants, competitive challenge grants, 

secondary/2-year postsecondary grants, Hispanic serving institutions education grants, a multicultural 

scholars program, a Native American institutions program, a Native American institutions endowment 

fund, an Alaska Native serving and a Native Hawaiian serving institutions program, grants for insular 

areas, and a capacity building program at the 1890 institutions. These programs enable universities to 

broaden their curricula, increase faculty development and student research projects, and increase the 

number of new scholars recruited in the food and agriculture sciences. NIFA also supports 

extension-related work at 1862 and 1890 land-grant institutions throughout the country through 

formula-based or competitive programs. 

Food and Nutrition Service

FNS’ human capital consists of employment and training (E&T) for SNAP. The E&T program requires 

recipients of SNAP benefits to participate in an employment and training program as a condition to 

SNAP eligibility.

Outcome data for the E&T program is only available through the third quarter. As of this period, FNS’ 

E&T program has placed 49,408 work registrants subject to the 3 month SNAP participant limit and 

316,410 work registrants not subject to the limit in either job-search, job-training, job-workfare, 

education, or work experience. 

Agricultural Research Service (ARS)

The National Agricultural Library (NAL) provides services directly to the staff of USDA and to the 

public, primarily via its website. As the world’s leading agricultural library, and one of five National 

Libraries, NAL has expertise in information and knowledge management, and a wide variety of subject 
26 Section I | Management's Discussion and Analysis

areas related to agriculture and food, including agricultural law, nutrition and food safety, animal 

welfare, natural resources, invasive species, lifecycle assessment, and long-term agroecosystem 

research.

In FY 2022, NAL delivered about 44.1 million page views to 6.9 million customers in 15.8 million 

user sessions. Separately, application developers made nearly 32 million application programming 

interface (API) calls to Food Data Central, making the Food Data Central API among the most popular 

in government. 

Risk Management Agency

The Federal Crop Insurance Corporation (FCIC) provides education and training on crop insurance 

programs and risk management strategies to agricultural producers and ranchers. Notice of Funding 

Opportunity solicitations for partners are announced on Grants.gov. 

Partnerships with qualified applicants provide education, outreach assistance and related tools and 

information on crop insurance programs and risk management strategies. Awards are given on a 

competitive basis and awarded for a one-year term. Awardees demonstrated non-financial benefits 

and agreed to substantial involvement by FCIC in the project. Funding is authorized in section 522 

of the Act. 

Partnerships are established with the private industry and these organizations worked with Women, 

Hispanics, African Americans, Asian Americans, Native Americans, Immigrants, Military Veterans, 

Organic Crops, Beginning Producers, Specialty Crop Producers & Ranchers, New Markets, Livestock 

Farmers, Limited Resource, Retiring-Transitioning, Socially Disadvantaged, Sustainable Producers, 

Traditional, Value-Added and Small Farms & Ranches. 

Education efforts are improved by expanding State and Regional education partnerships; encouraging 

the development of information and technology-based decision aids; facilitating local crop insurance 

education and risk management training workshops throughout the nation through cooperative 

agreements with educational institutions, community-based outreach organizations, and other 

qualified entities. 

Natural Resources Conservation Service

NRCS’s investment in human capital is primarily for education and training programs that are intended 

to increase or maintain national economic productive capacity. Human capital investment also seeks to 

produce outputs and outcomes that provide evidence of maintaining or increasing national productive 

capacity. 

Research And Development

Agricultural Research Service 

ARS’ mission is to conduct research to develop and transfer solutions to agricultural problems of high 

national priority and provide information access and dissemination to ensure high quality, safe food, 
USDA | 2022 Agency Financial Report 27

and other agricultural products; assess the nutritional needs of Americans; sustain a competitive 

agricultural economy; enhance the natural resource base and the environment; and provide economic 

opportunities for rural citizens, communities, and society as a whole. 

Human Nutrition

Maintenance of health throughout the lifespan along with prevention of obesity and chronic diseases 

via food-based recommendations are the major emphases of ARS’ Human Nutrition Research Program. 

These health-related goals are based on the knowledge that deficiency diseases are no longer the 

primary public health concerns in the United States; excessive consumption has become the primary 

nutrition problem in the American population. This is reflected by increased emphasis on prevention of 

obesity, from basic science through intervention studies to assessments of large populations. 

The agency’s research program also studies essential nutrients and nonessential, health promoting 

components in foods. To better define the role of nutrition in pregnancy and growth of children, and for 

healthier aging, four specific areas of research are emphasized: nutrition monitoring; the scientific 

basis for dietary recommendations; prevention of obesity and related diseases; and life stage nutrition 

and metabolism.

New Products/Product Quality/Value Added

ARS has active research programs across the United States directed toward: improving the efficiency 

and reducing the cost for the conversion of locally-sourced agricultural feedstocks into sustainable 

biofuels and high-value biobased products; developing new and improved products for domestic and 

foreign markets; and providing higher quality fibers and healthy foods that satisfy commercial and 

consumer needs in the United States and abroad. 

Livestock Production 

ARS’ research program is directed toward fostering an abundant, safe, nutritionally wholesome, and 

competitively priced supply of terrestrial and aquatic animal products produced in a viable, 

competitive, and sustainable animal agriculture sector of the U.S. economy by: safeguarding and 

utilizing animal genetic resources, associated genetic and genomic databases, and bioinformatic tools; 

developing a basic understanding of food animal physiology to address priority issues related to animal 

production, animal well-being, and product quality and healthfulness; and developing information, best 

management practices, novel and innovative tools, and technologies that improve animal production 

systems, enhance human health, and ensure domestic food security. The research is heavily focused on 

the development and application of genomics technologies to increase the efficiency and product 

quality of beef, dairy, swine, poultry, aquaculture, and sheep systems. Areas of emphasis include 

increasing the efficiency of nutrient utilization, improving animal well-being and reducing stress in 

production systems, increasing reproductive rates and breeding animal longevity, developing and 

evaluating non-traditional production systems (e.g., organic and natural), and investigation of the 

microbiome and associated antimicrobial resistance with emphasis on animal health, immune function, 

and productivity. 
28 Section I | Management's Discussion and Analysis

Crop Production 

ARS’ program focuses on enhancing American agricultural productivity and ensuring a high quality, 

safe supply of food, fiber, ornamental and industrial products. The program concentrates on production 

strategies that are environmentally friendly, safe to consumers, and compatible with sustainable and 

profitable crop production systems. Research activities are directed at safeguarding and utilizing plant 

genetic resources and their associated genetic, genomic, and bioinformatic databases that facilitate 

selection of varieties and/or germplasm with significantly improved traits. Research activities attempt 

to minimize the impacts of crop pests while maintaining healthy crops and safe commodities that can 

be sold in markets throughout the world. The agency is conducting research to discover and exploit 

naturally occurring and engineered genetic mechanisms for plant pest control, develop germplasm with 

durable defensive traits, and transfer genetic resources for commercial use. ARS is also providing 

taxonomic information on invasive species that strengthens prevention techniques, aids in 

detection/identification of invasive pests, and increases control through management tactics that restore 

habitats and biological diversity. 

Food Safety 

ARS’ research program is designed to yield science-based knowledge on the safe production, storage, 

processing, and handling of plant and animal products, and on the detection and control of pathogenic 

bacteria and fungi, parasites, chemical contaminants, and plant toxins. All of ARS’ research activities 

involve a high degree of cooperation and collaboration with USDA’s Research, Education, and 

Economics agencies, as well as with the Food Safety and Inspection Service, Animal and Plant Health 

Inspection Service, the Food and Drug Administration, the Centers for Disease Control and Prevention, 

the Department of Homeland Security, and the Environmental Protection Agency. The agency also 

collaborates in international research programs to address and resolve global food safety issues. 

Specific research efforts are directed toward developing new technologies that assist ARS stakeholders 

and customers, including regulatory agencies, industry, and commodity and consumer organizations in 

detecting, identifying, and controlling foodborne diseases that affect human health. 

Livestock Protection

ARS’ program is directed at protecting and ensuring the safety of the Nation’s agriculture and food 

supply through improved disease detection, prevention, control, and treatment. Basic and applied 

research approaches are used to solve animal health problems of high national priority. Emphasis is 

given to methods and procedures to control animal diseases through the discovery and development of 

diagnostics, vaccines, biotherapeutics, animal genomics applications, disease management systems, 

animal disease models, and farm biosecurity measures. The research program has the following 

strategic objectives: establish ARS laboratories into a fluid, highly effective research network to 

maximize use of core competencies and resources; use specialized high containment facilities to study 

zoonotic and emerging diseases; develop an integrated animal and microbial genomics research 

program; establish core competencies in bovine, porcine, ovine, avian and aquatic animal 

immunology; launch a biotherapeutic discovery program providing alternatives to animal drugs; build 

a technology driven vaccine and diagnostic discovery research program; develop core competencies in 

field epidemiology and predictive biology; establish a best-in-class training center for our Nation’s 
USDA | 2022 Agency Financial Report 29

veterinarians and scientists; and develop a model technology transfer program to achieve the full 

impact of ARS research discoveries. The ARS animal research program includes the following core 

components: biodefense research, animal genomics and immunology, zoonotic diseases, respiratory 

diseases, reproductive and neonatal diseases, enteric diseases, parasitic diseases, and transmissible 

spongiform encephalopathies. 

Crop Protection 

ARS’ Crop Protection research program is directed to protect crops from insect and disease loss 

through research to understand pest and disease transmission mechanisms, and to identify and apply 

new technologies that increase our understanding of virulence factors and host defense mechanisms. 

The program’s research priorities include: identification of genes that convey virulence traits in 

pathogens and pests; factors that modulate infectivity, gene functions, and mechanisms; genetic 

profiles that provide specified levels of disease and insect resistance under field conditions; and 

mechanisms that reduce the spread of pests and infectious diseases. ARS is developing new knowledge 

and integrated pest management approaches to control pest and disease outbreaks as they occur. Its 

research will improve the knowledge and understanding of the ecology, physiology, epidemiology, and 

molecular biology of emerging diseases and pests. This knowledge will be incorporated into pest risk 

assessments and management strategies to minimize chemical inputs and increase production. 

Strategies and approaches will be available to producers to control emerging crop diseases and pest 

outbreaks and to address quarantine issues.

Environmental Stewardship

ARS’ research program emphasis is in developing technologies and systems that support sustainable 

production and enhance the Nation’s vast renewable natural resource base. Environmental stewardship 

research is designed to meet the broad challenges of managing sustainable production systems at the 

incredibly complex soil, water, atmosphere, crop and livestock interface. 

The agency is currently developing the scientific knowledge and technologies needed to meet the 

challenges and opportunities facing U.S. agriculture in managing water resource quality and quantity 

under different climatic regimes, production systems, and environmental conditions. The research is 

focused on ensuring optimal and sustainable use of water resources and protecting watersheds and 

water quality, helping land managers address challenges posed by too much or too little precipitation, 

controlling the movement of water and soil from the landscape, and improving the application 

efficiency of irrigation water to cropping systems. 

ARS’ research also focuses on developing measurement, prediction, and control technologies for 

emissions of greenhouse gases, particulate matter, ammonia, hydrogen sulfide, and volatile organic 

compounds affecting air quality and land-surface climate interactions. The agency is a leader in 

developing measurement and modeling techniques for characterizing gaseous and particulate matter 

emissions from agriculture. In addition, ARS is evaluating strategies for enhancing the health and 

productivity of soils, including developing predictive tools to assess the sustainability of alternative 

land management practices. Finding mechanisms to aid agriculture in storing atmospheric carbon in 
30 Section I | Management's Discussion and Analysis

soils and biomass and ensuring production systems are adapted to changes in atmospheric composition 

and resilient to climatic variations and extremes are also important components of this program. 

ARS’ grass, range and grazing land research objectives include the conservation and restoration of the 

Nation’s range land, pasture and turf ecosystems and agroecosystems through improved management 

of fire, pests, invasive weeds, grazing, global change, ecosystem services and other agents of 

ecological change. The agency is currently developing improved grass and legume germplasm for 

livestock, forage, conservation, bioenergy, turf, fiber, and bioproduct systems as well as grazing-based 

livestock systems that reduce risk and increase profitability. In addition, ARS is developing whole 

system management strategies to improve performance and resilience of these systems and reduce 

production costs and risks. 

National Bio and Agro-Defense Facility

The National Bio and Agro-Defense Facility (NBAF), located in Manhattan, Kansas, will be a state-ofthe-art biocontainment facility for the study of foreign, emerging, and zoonotic animal diseases that 

pose a threat to United States animal agriculture and public health. NBAF will provide the first U.S 

large animal biosafety level-4 facilities to house livestock infected with zoonotic agents within the 

highest biocontainment envelope, a critical capability that is currently lacking in the U.S. NBAF will 

also house a Biologics Development Module that will provide small scale production of standardized 

biological reagents needed for basic and applied research, and biological test materials for supporting 

proof-of-concept studies and early phase veterinary medical countermeasures development. 

National Institute of Food and Agriculture

NIFA participates in a nationwide land-grant university system of agriculture related research and 

program planning and coordination between State institutions and USDA. It assists in maintaining 

cooperation among the State institutions, and between the State institutions and their Federal research 

partners. NIFA administers competitive grants and capacity/formula payments to State institutions to 

leverage State and local funding for agriculture research.

Forest Service

FS Research & Development (R&D) has an integrated science portfolio that supports the achievement 

of the agency’s strategic goals. Science-based management is fundamental to restoring, enhancing and 

sustainably receiving ecological, economic, social, and environmental benefits from the Nation’s 

forests and grasslands. The contributions of FS R&D enhance the rigor and impact of many aspects of 

FS mission delivery. 

FS R&D is conducted by agency scientists, and their partners and cooperators, distributed throughout 

the 50 States and Puerto Rico. This research is administered by a national laboratory, an international 

institute, and five research stations. The national laboratory and international institute are the Forest 

Products Laboratory in Madison, WI and the International Institute of Tropical Forestry in Rio Piedras, 

Puerto Rico, respectively. The five research stations are the Northern Research Station, headquartered 

in Madison, WI; the Pacific Northwest Research Station, headquartered in Portland, OR; the Pacific 
USDA | 2022 Agency Financial Report 31

Southwest Research Station, headquartered in Albany, CA; the Rocky Mountain Research Station, 

headquartered in Fort Collins, CO; and the Southern Research Station, headquartered in Asheville, NC. 

Key research themes for FS R&D include Wildland Fire and Fuels; Invasive Species; Water, Air, and 

Soil; Wildlife and Fish; Resource Management and Use; Outdoor Recreation; and Inventory and 

Monitoring. Brief summaries of each theme and their respective contributions follow below. 

Wildland Fire and Fuels

Wildland Fire and Fuels R&D provides managers with the knowledge and tools to reduce negative 

impacts and to enhance the beneficial effects of wildland fire, as a natural process. This knowledge and 

these tools are critical to understanding the human process of fire and fuels management, as well as to 

understanding the effects of fire and fuels management on society and the environment. 

Research focuses on understanding and modeling fundamental fire processes; interactions of fire with 

ecosystems; and the environmental, social, and economic aspects of fire, as well as evaluating 

integrated management strategies and disturbance interactions at multiple scales and the application of 

fire research to address management problems.

Invasive Species

Invasive Species R&D provides the scientific information, methods, and technology to reduce or 

eliminate the introduction, spread, and impact of invasive species and to restore or improve the 

functionality of ecosystems affected by invasive species. 

Research focuses on non-native plants, pathogens, animals, fish, insects, diseases, invertebrates, and 

other species whose introduction is likely to cause economic or environmental harm to an ecosystem. 

Water, Air, and Soil 

Water, Air, and Soil R&D enables the sustainable management of these essential resources by 

providing science to inform management efforts to provide clean air and safe drinking water, to protect 

lives and property from wildland fire and smoke, and to adapt to climate variability and change. 

The program addresses ecosystem services with a high level of integration among water, air, and soil 

research, such as the effects of climate variability and change on water budgets or carbon sequestration 

metrics from an ecosystem perspective.

Wildlife and Fish

Wildlife and Fish R&D relies upon interdisciplinary research to inform policy initiatives affecting 

wildlife and fish habitat on private and public lands, and the recovery of threatened or 

endangered species.

Scientists investigate the complex interactions among species, ecosystem dynamics and processes, land 

use and management, and any emerging broad scale threats to fish and wildlife viability, including 

global climate change, loss of open space, invasive species, and disease. 
32 Section I | Management's Discussion and Analysis

Resource Management and Use

Resource Management and Use R&D provides the science and technology base to sustainably manage 

and use forest resources and fiber-based forest products. 

Research focuses on the plant sciences, soil sciences, social sciences, silviculture, productivity, forest 

and range ecology management, harvesting and operations, forest and biomass products and 

utilization, economics, urban forestry, and climate change.

Outdoor Recreation 

Outdoor Recreation R&D promotes human and ecological sustainability by researching environmental 

management, activities, and experiences that connect people with the natural world.

Research in outdoor recreation is interdisciplinary, focusing on nature-based recreation and the 

changing trends in American society; connections between recreation visitors, communities, and the 

environment; human benefits and consequences of recreation and nature contact; environmental justice 

and access to outdoor recreation opportunities; effectiveness of recreation management and decisionmaking; and sustaining ecosystems affected by recreational use. 

Inventory and Monitoring 

Inventory and Monitoring R&D provides the resource data, analysis, and tools that monitor vulnerable 

forest ecosystems for rapid change resulting from threats, including fire, insects, disease, natural 

processes, or management actions. Through this research, scientists determine the status and trend of 

the health of the Nation’s forests and grasslands, and the potential impact from ongoing and anticipated 

environmental stressors. 

Their research integrates the development and use of science, technology, and remotely sensed data to 

better understand the incidences of forest fragmentation over time from changes in land use or from 

insects, disease, fire, and extreme weather events. This research is also essential for understanding 

broad-scale carbon dynamics in ecosystems and for informing carbon stewardship strategies.

Economic Research Service (ERS)

ERS provides economic and other social science research and analysis for public and private decisions 

on agriculture, food, natural resources, and rural America. Research results and economic indicators on 

these important issues are fully disseminated through published and electronic reports and articles, 

special staff analyses, briefings, presentations and papers, databases, and individual contacts. ERS’ 

objective information and analysis helps public and private decision makers attain the goals that 

promote agricultural competitiveness, food safety and security, a well-nourished population, 

environmental quality, and a sustainable rural economy. 

National Agricultural Statistics Service (NASS)

NASS conducts research to improve the statistical methods and related technologies used to produce 

U.S. agriculture statistics. The research agenda has two primary areas of emphasis: the National 

Agriculture Statistics Service estimation program and the Census of Agriculture program. For each, the 
USDA | 2022 Agency Financial Report 33

goal is the development of improved estimates at lower cost, with reduced respondent burden, and with 

valid measures of uncertainty. All facets of the estimation process are considered, from increasing 

efficiencies in sampling and data collection to enhancing the statistical methodology used to analyze the 

data. Two high priority items within the research effort are exploring approaches to reducing respondent 

burden and model-based estimates. The use of previously reported, remotely sensed, and administrative 

data have the potential to substantially reduce respondent burden, but can also introduce bias. Assessing 

the best ways to use these data and continue to produce precise statistics is a major effort. Models are 

used to combine data from disparate sources, from sample surveys to remote sensing, resulting in 

improved estimates with valid measures of uncertainty. Going forward, users of NASS services and 

products will be increasingly dependent upon methodological and technological efficiencies.

Natural Resources Conservation Service

NRCS Plant Materials Centers (PMC) are research farms engaging in applied research and 

development as defined in SFFAS No. 8. Overall efforts of PMCs include the selection of plants and 

the development of plant technology used by NRCS and conservation partners for the application of 

vegetation to solve natural resource issues on private and public lands. 

The NRCS Soil Science Division conducts soil survey research and provides leadership for the 

National Cooperative Soil Survey, which is responsible for the soils inventory of the United States and 

interpreting this information to “help people help the land” through natural resource conservation. 

Limitations of Financial Statements

The principal financial statements are prepared to report the financial position, financial condition, and 

results of operations, pursuant to the requirements of 31 U.S. Code (U.S.C.) § 3515(b). The statements 

are prepared from records of Federal entities in accordance with Federal generally accepted accounting 

principles (GAAP) and the formats prescribed by the Office of Management and Budget (OMB). 

Reports used to monitor and control budgetary resources are prepared from the same records. Users of 

the statements are advised that the statements are for a component of the U.S. Government. 
34 Section I | Management's Discussion and Analysis

Statement of Assurance

The U.S. Department of Agriculture’s (USDA or the Department) management is responsible for establishing 

and maintaining effective internal controls and financial management systems that comply with the Federal 

Managers’ Financial Integrity Act of 1982 (FMFIA). 

We assessed the effectiveness of internal controls over reporting, which includes controls over financial reporting 

and operations in accordance with FMFIA, Section 2 (see exhibits 22.A and 22.B for more details) and Office of 

Management and Budget (OMB) Circular No. A-123, Appendix A. The Department is providing a modified 

statement of assurance over the overall adequacy and effectiveness of internal controls at the Department.

Specifically, USDA is providing reasonable assurance that internal controls over operations and USDA’s 

systems are effective and meet FMFIA objectives, except for two material weaknesses in internal controls 

related to: (1) information technology and (2) financial management, respectively. There is also one instance of 

financial system non-conformance, which is also a non-compliance with the Federal Financial Management 

Improvement Act of 1996 (FFMIA). In addition, USDA continues to report instances of non-compliance with 

the laws governing improper payments and anti-deficiency violations. 

We also assessed the compliance of USDA’s financial management systems with Federal Financial Management 

Systems’ requirements in accordance with FMFIA Section 4; FFMIA Section 803(a); and OMB Circular No. A123, Appendix D. They require federal agencies to implement and maintain financial management systems that 

comply with federal financial management system requirements, applicable federal accounting standards, and 

the U.S. Standard General Ledger at the transaction-level. As a result of the assessments conducted, we are 

reporting a financial system non-conformance and non- compliance with FFMIA.

The details of the exceptions are provided in the FMFIA, FFMIA, Laws and Regulations, and Summary of 

Financial Statement Audit and Management Assurances sections of this report. No other material weaknesses 

were found in the design of the internal control over (1) the effectiveness and efficiency of operations and 

compliance with applicable laws and regulations as of September 30, 2022, and (2) internal control over 

reporting as of September 30, 2022. 

USDA remains committed to operating its programs and operations effectively and efficiently and its financial 

management systems in compliance with federal requirements; therefore, it is executing plans to improve 

deficient internal controls and areas of non-compliance.

This fiscal year, we made improvements to the Fund Balance with Treasury reconciliation process to strengthen 

USDA’s systems of internal control and will continue to remediate internal control weaknesses. 

Thomas J. Vilsack

Secretary of Agriculture

November 14, 2022 
USDA | 2022 Agency Financial Report 35

Federal Managers’ Financial Integrity Act 

Report on Management Control

Background

The Federal Managers’ Financial Integrity Act (FMFIA) requires ongoing evaluations of internal 

controls and financial management systems. These evaluations lead to an annual statement of 

assurance that:

• Obligations and costs comply with applicable laws and regulations; 

• Federal assets are safeguarded against fraud, waste, abuse, and mismanagement;

• Transactions are accounted for and properly recorded; and 

• Financial management systems conform to standards, principles, and other requirements to 

ensure that Federal managers have timely, relevant, and consistent financial information for 

decision-making purposes. 

The U.S. Department of Agriculture (USDA or the Department) evaluated its internal controls in 

accordance with Office of Management and Budget (OMB) Circular No. A-123, Management’s 

Responsibility for Enterprise Risk Management and Internal Control. 

USDA remains committed to reducing the risks associated with its deficiencies. It also strives to 

efficiently and effectively operate its programs in compliance with FMFIA and other applicable laws 

and regulations. 

The Department operates a comprehensive internal control program. This program ensures compliance 

with the requirements of FMFIA, OMB Circular No. A-123, and its Appendices A through D, and other 

laws and regulations and conformance with the Federal Financial Management Improvement Act 

(FFMIA). All USDA managers must ensure their programs operate efficiently and effectively and 

comply with relevant laws. They must also ensure that financial management systems conform to 

applicable laws, standards, principles, and related requirements. In addition, USDA’s management 

works with the Office of Inspector General (OIG) and the Government Accountability Office (GAO), 

to remediate the root causes of material weaknesses.
36 Section I | Management's Discussion and Analysis

Fiscal Year 2022 Results 

We are glad to report that the Farm Service Agency (FSA), a sub-agency of the Farm Production and 

Conservation (FPAC) Mission Area, improved the Fund Balance with the Treasury reconciliation 

process. As a result, the agency closed it’s fiscal year (FY) 2021 material weakness in the area of 

financial reporting. In addition, the Commodity Credit Corporation (CCC) made significant progress to 

address material weaknesses related to accounting for budgetary transactions and funds control, 

reducing this previously reported material weakness to a significant deficiency.

The Department has two existing material weaknesses in internal controls over financial reporting: 

(1) information technology (IT) and (2) financial management (See exhibit 22.A for more details). 

The material weakness of IT is due to improvements needed in IT security and overall effectiveness 

(See Exhibit 12.1). The material weakness for financial management is due to improvements needed in 

accounting and internal controls related to the Natural Resources Conservation Service (NRCS); 

(See Exhibit 12.2). 

USDA has one existing system non-conformance related to Funds Control Management within the 

CCC (see exhibit 13). Carrying over from FY 2021, the Department has two instances of noncompliance related to the Payment Integrity Information Act of 2019 (formerly Improper Payments 

Elimination and Recovery Act of 2010, as amended); within the Farm Service Agency (FSA) and 

CCC, and two newly discovered instances within the Risk Management Agency and Agricultural 

Marketing Service (AMS) respectively (further explained in Section III: Other Information). Food and 

Nutrition Service (FNS) closed two additional non-compliance issues with the Payment Integrity 

Information Act of 2019 (PIIA) identified in the FY 2021 report. 

The Department reported two Anti-Deficiency Act (ADA) violations to the President and Congress 

during the fiscal year. The Office of the General Counsel determined that two other potential instances 

were not ADA violations; however, these occurrences have been referred to GAO for a determination. 

These two are pending results from research and investigation for a determination as to whether 

violations occurred, and three more are pending submission to the President and Congress. A detailed 

description and summary of the Department’s ADAs can be found in the Compliance with Laws and 

Regulations section of this report. 

The Secretary’s Statement of Assurance provides modified assurance that USDA’s system of internal 

control complies with FMFIA objectives. For additional details on the results reported in USDA’s 

Consolidated Financial Statements Audit Report, see the Summary of Financial Statement Audit and 

Management Assurances section of this report.
USDA | 2022 Agency Financial Report 37

Summary of Outstanding Material Weaknesses

Exhibit 12 provides FY 2022 accomplishments and FY 2023 planned actions toward resolving the 

outstanding material weaknesses.

Exhibit 12: Summary of Outstanding Material Weaknesses

1. USDA IT

Material Weaknesses 

Existing

The Department needs to continue its efforts to improve IT security and overall IT 

maturity to an effective level. In addition, the Department needs to continue 

remediation of its remaining outstanding audit recommendations.

Overall Estimated 

Completion Date FY 2023

FY 2022 Accomplishments: FY 2023 Planned Actions:

During FY 2022, the Office of the Chief Information 

Officer (OCIO):

• Completed implementation of its Security Operations 

(SecOps) Consolidation initiative;

• Performed security assessments on select mission 

areas;

• Improved the High Vulnerability Assessment Security 

Domain rating from “At Risk” to “Managing Risk” and 

the Unprivileged Centralized Access Management 

capability from “High Risk” to “Managing Risk” as 

indicated in the third quarter of the OMB Risk 

Management Assessment report;

• Completed the USDA Privacy Program Plan and 

Personally Identifiable Information (PII) tabletop 

exercise as mandated by the OIG;

• Refined operational processes to align with 

Continuous Diagnostics and Mitigation (CDM) Phase 

1 (Asset Management) and Phase 2 (Identity and 

Access Management) tools;

• Completed initial planning for the CDM Phase 3 tools;

• Selected and implemented Department of Homeland 

Security/CDM Phase 2 tools to remove and disable 

inactive privileged and non-privileged accounts as 

mandated by OIG; and

• Achieved above-average scores on the Federal 

Information Technology Acquisition Reform Act 

(FITARA) Dashboard, in the categories of Data Center 

Optimization Initiative, Modernizing Government 

Technology, and Transparency and Risk Management.

OCIO will:

• Continue to refine operational processes to 

align with CDM Phases;

• Deploy CDM Phase 3 tools (Network Security 

Management);

• Continue implementing audit 

recommendations from FY 2018 and FY 2019;

• Develop a risk management strategy that will 

align with USDA’s enterprise risk management 

governance;

• Deploy or implement the Security Posture 

Dashboard Report that will incorporate 

operational and compliance IT risk within one 

system; 

• Publish Departmental Directives related to: 

Suitability Requirements Permitting Personnel 

Access to Information Systems, Information 

Systems Audit and Accountability, Firewall 

Technical Security Standard, and Security 

Assessment and Authorization; and

• Continue to track, monitor, and enforce 

security configuration baselines for USDA 

servers. 
38 Section I | Management's Discussion and Analysis

2. Financial Management—NRCS

Material Weaknesses 

Existing NRCS needs improved controls over obligations.

Overall Estimated 

Completion Date FY 2023

FY 2022 Accomplishments: FY 2023 Planned Actions:

During FY 2022, NRCS:

• Enhanced FMMI and feeder system processes to 

produce aged ULO reports with period of 

performance data for obligations;

• Established an ongoing process to maintain, 

monitor, and certify ULOs by period of 

performance to ensure ULOs are being closed out 

promptly to prevent a backlog of aged obligations 

from developing in the future;

• Provided additional guidance and/or training to 

employees over the recording of transactions 

with future economic benefits;

• Evaluated the results of the FY 2021 financial 

audit and the lessons learned to ensure the 

proper controls are in place for those processes; 

and

• Improved communication and coordination 

agency-wide.

NRCS will:

• Continue ongoing process improvements to 

maintain, monitor, and certify ULOs to ensure the 

accuracy of reported balances and maintenance 

of sufficient documentation;

• The Business Center is developing processes to 

ensure data is reported, completed, and accurate; 

and 

• Evaluate the results of the FY 2022 financial audit 

and the lessons learned to ensure the proper 

controls are in place.
USDA | 2022 Agency Financial Report 39

Summary of Outstanding System Non-Conformance

FMFIA requires conformance with Financial Management System requirements and FFMIA requires 

compliance with the same requirements (see the Summary of Assurance section for more details). 

Therefore, we are reporting a non-conformance in Funds Control Management that is also reported as a 

system non-compliance and is included in the FFMIA Report on Financial Management Systems 

section. The weakness involves component agency-specific deficiencies for CCC. 

Exhibit 13 provides FY 2022 accomplishments and FY 2023 planned actions toward resolving the 

Department’s outstanding system non-conformance.

Exhibit 13: Summary of Outstanding System Non-Conformance

1. Funds Control Management— CCC

System 

Non-conformance Existing

CCC system improvements that are needed in recording 

obligations at the transactional level.

Overall Estimated Completion Date FY 2025

FY 2022 Accomplishments: FY 2023 Planned Actions:

During FY 2022, CCC:

• Continued to evaluate all budgetary general and 

subsidiary ledgers to ensure they reflect the 

appropriate accounting and reporting guidance 

provided by OMB and the U.S. Department of 

Treasury;

• Continued with the execution of the existing OMB 

A-123, Appendix A, Corrective Action Plan for 

Funds Control and Budgetary Accounting;

• Partnered with Deputy Administrator Farm 

Programs and Information Technology Services 

Division (ITSD) to work towards completing 

software modifications to ensure all program 

applications were in full compliance with the 

Funds Control/ Obligation Requirements (such as 

business events, establishments, liquidations, 

adjustments downward and upward) related to 

obligations at the transaction level in order to 

prepare for FMMI conversion; and

• Launched the FSA/CCC Financial Improvement 

Program multi-phased, multi-year project; moved 

financial management processes from FPAC and 

its affiliated agencies’ accounting and feeder 

systems to FMMI.

CCC will:

• Continue to evaluate all budgetary general and 

subsidiary ledgers to ensure they reflect the 

appropriate accounting and reporting guidance 

provided by OMB and the U.S. Department of 

Treasury;

• Continue to partner with Deputy Administrator 

Farm Programs and ITSD until software 

modifications are in full compliance with the 

Funds Control/Obligation Requirements (such as 

business events, establishments, liquidations, 

adjustments downward and upward) related to 

obligations at the transaction level in order to 

prepare for FMMI conversion; and

• Continue to implement the FSA/CCC Financial 

Improvement Program multi-phased, multi-year 

project until completed.
40 Section I | Management's Discussion and Analysis

Compliance with Laws and Regulations

The U.S. Department of Agriculture (USDA or the Department) has developed strategies to reduce 

and/or mitigate confirmed violations during fiscal year (FY) 2022. USDA remains noncompliant with 

the Payment Integrity and Information Act of 2019 (formerly the Improper Payments Elimination and 

Recovery Act of 2010), and the Anti-Deficiency Act (ADA), as identified in Exhibit 14, and 15, 

respectively.

The following tables provide further details of each violation. 

Payment Integrity and Information Act 

Exhibit 14: Four Instances of Non-Compliance with PIIA Noted

Agency: Commodity Credit Corporation (CCC) Year Identified

Violation: Non-compliance with PIIA FY 2021

Agency: Farm Service Agency (FSA) Year Identified

Violation: Non-compliance with PIIA FY 2021

Agency: Risk Management Agency (RMA) Year Identified

Violation: Non-compliance with PIIA as amended for the Federal Crop Insurance 

Corporation

FY 2022

Agency: Agricultural and Marketing Service (AMS) Year Identified

Violation: Recipients of the Pandemic Response and Safety Grant have received 

duplicate payments, resulting in improper disbursements of $1.6M.

FY 2022
USDA | 2022 Agency Financial Report 41

Anti-Deficiency Act

Each agency within USDA conducts assessments on their own Anti-Deficiency Act compliance. Results 

are submitted monthly. Violations are reported to Congress, Office of the Inspector General (OIG), and 

the President. 

Exhibit 15: Three ADA Violations were Reported to the President and Congress During 2022

Agency: Office of the Chief Information Officer (OCIO) Year Identified

Violation: Funding for an Information Technology (IT) Modernization Center of 

Excellence initiative in FY 2018 was obligated in the amount of 

$7 million without first obtaining E-Board concurrence.

FY 2021

Agency: OCIO Year Identified

Violation: FY 2020 (NEW): OCIO potentially used more than $22.5 million for 

consulting services that had been mandated for the acquisition of 

capital investments.

FY 2020

Agency: Farm Service Agency (FSA) Year Identified

Violation: Work Shutdown: During the FY 2019 lapse in appropriations, FSA 

incurred obligations to perform various activities and ultimately recalled 

employees in all county offices back to work. FSA lacked available 

budget authority for these activities ($53,040,426).

FY 2019
42 Section I | Management's Discussion and Analysis

Exhibit 16: ADA Violation Pending Submission to the President and Congress; two ADA violations are 

pending issuance of letters.

Agency Description of Violation Status

Office of the 

Secretary 

(Previous 

Administration)

FY 2017: Two provisions in the Consolidated Appropriations Act 

were violated. USDA obligated and expended funds 

appropriated by the Act to prepare and deliver the Secretary’s 

statements and to develop and publish the associated press 

release. USDA’s obligation and expenditure of appropriated 

amounts for this prohibited purpose also violated the ADA, 

31 U.S. Code (U.S.C). § 1341(a)(1)(A). The combined cost 

associated with the violation is $68.47. 

The Government 

Accountability Office (GAO) 

determined an ADA violation 

occurred. Final Letters are 

pending. 

CCC Tree Assistance Program: 34 unrecorded contracts were signed 

and approved in FY 2021 totaling $1,611,127. In FY 2022, the 

contracts were recorded into the program application yet failed 

to be recorded into the Core Accounting System (CORE) due to 

being held by the Common Obligation Framework as a result of 

a lack of FY 2021 funds.

The Office of the General 

Counsel (OGC) determined 

an ADA violation occurred. 

Final Letters are pending.

Potential ADA Violations—two prior year violations were identified. These occurrences are pending 

results from research and investigation for a determination as to whether a violation occurred. This 

table provides a description and status. 

Exhibit 17: Prior Year and Newly Identified Potential ADA Violations

Agency Description of Violation Status

CCC FY 2017: The prior year accounting treatment for 

obligations related to the Conservation Reserve 

Program—Annual Rental contracts were determined 

to be in error with an ADA total of $9,921,859,680. 

Only the annual portion of the contract values was 

recorded as an obligation.

The OGC determined that the error 

was not an ADA violation; however, 

referred to GAO for determination.

CCC FY 2018: Emergency Forestry Conservation Reserve 

Program—CCC failed to record the obligation for the 

full value of the long-term contract when the 

contract was signed. The ADA violation amount was 

$2,200,000.

OGC determined that the error was not 

an ADA violation; however, referred to 

GAO for determination.
USDA | 2022 Agency Financial Report 43

Analysis of Systems, Control, and Legal 

Compliance

Federal Financial Management Improvement Act (FFMIA) Report on 

Financial Management Systems

The FFMIA is designed to improve financial and program managers’ accountability, provide better 

information for decision-making, and improve the efficiency and effectiveness of federal programs. 

FFMIA requires that financial management systems provide reliable, consistent disclosure of financial 

data in accordance with generally accepted accounting principles and standards. These systems must also 

comply with (1) Federal Financial Management System (FFMS) requirements, (2) applicable federal 

accounting standards, and (3) the U.S. Standard General Ledger (USSGL) at the transaction level. 

 Failure to resolve prior year recommendations identified by the U.S. Department of Agriculture's 

(USDA or the Department) Office of Inspector General has prevented the Department from mitigating 

repeated deficiencies and receiving a quality rating on the five Cybersecurity Framework security 

functions. More detailed information on the status of corrective actions planned and to be completed to 

comply with the Federal Information Security Modernization Act (FISMA) is provided in the USDA 

Management Challenges section of this report. 

Fiscal Year (FY) 2022 Results

During FY 2022, the USDA evaluated its financial management systems to assess compliance with 

FFMIA. In assessing FFMIA compliance, USDA considered auditors’ opinions on component 

agencies’ financial statements and progress in addressing the material weaknesses identified in the 

FY 2021 Agency Financial Report (AFR). The Commodity Credit Corporation (CCC) addressed 

material weaknesses reported during the previous reporting years. CCC is now in compliance with 

FFMIA related to federal accounting standards. 

USDA is not compliant with federal accounting standards and the USSGL at the transaction level due 

to deficiencies identified for CCC and NRCS (See Exhibit 18). In addition, as reported in the FFMIA 

section of this report, USDA continues to have weaknesses in IT controls and FFMS requirements that 

result in non-compliance with the FISMA requirement. As part of its financial systems strategy, USDA 

agencies continue working to meet FFMIA and FISMA objectives. 
44 Section I | Management's Discussion and Analysis

CCC Non-Compliance

CCC was non-compliant with USSGL. The financial management systems did not record certain 

accounting events at the transaction level in accordance with the USSGL. The agency continues to 

implement compensating controls over the accounting for obligation activity, making significant 

progress. CCC continues implementing its program obligation activity into the Financial Management 

Modernization Initiative through a phased approach. 

NRCS Deficiencies

NRCS noted deficiencies in applicable federal accounting standards, including the USSGL at the 

transaction level. Specifically, incorrect posting logic was being used for recoveries of prior year unpaid 

obligations. NRCS continues working to mitigate deficiencies and substantially comply with FFMIA. 

The following exhibit contains the outstanding initiatives to achieve compliance. 

Exhibit 18: Initiatives to be Completed

Outstanding Initiatives to Achieve FFMIA Compliance

Initiative Section of Non-Compliance Agency

Target Completion 

Date

Information 

Technology (IT)

FFMS requirements and 

information security policies, 

procedures, and/or practices.

Multiple 10/31/2023

Financial 

Management

Federal accounting standards and 

USSGL at the transaction level.

Natural Resources 

Conservation Service (NRCS) 9/30/2023

USSGL at the transaction level. CCC 12/31/2024
USDA | 2022 Agency Financial Report 45

Financial Management Systems Strategy

The USDA Financial Management Services (FMS) component of the Office of the Chief Financial 

Officer (OCFO) provides timely, accurate, and complete financial information to USDA agencies to 

execute their mission. Specifically, FMS provides cloud-based, commercial off-the-shelf enterprise 

resource planning (ERP) software, equipping USDA staff offices and agencies with the functionality 

necessary to distribute, obligate, expend, and report on the funds entrusted to them by the U.S. 

Congress. 

FMS operates as an internal Shared Services Provider (SSP) to USDA staff offices and agencies. FMS 

offers proactive, cost-effective services providing value-added management services, expertise, and 

consultation to Federal Agencies to generate efficiencies and support through the consolidation and 

standardization of functions, standard processing, and repeatable processes. 

The OCFO leverages financial system successes to deliver future programs and tools that are efficient, 

cost-effective, mission-focused, collaboratively developed, and strategically aligned. OCFO’s systems’ 

objectives in fiscal year (FY) 2022 are to: 

• Build Financial System agility and visibility through integrated ERP systems capability and 

deploying emerging technology. 

• Expand capabilities of the OCFO systems to share, reuse, and integrate business capabilities, 

technology, and data across the Department and with external partners and stakeholders. 

• Increase application and system efficiencies by collaborating in Department-wide financial 

system investment rationalization efforts.

The OCFO will continue to advance its financial systems by implementing emerging ERP technology 

platforms, improving connectivity, reducing the marginal costs of accessing information, and providing 

new ways to aggregate and analyze information. 

Financial Management Lines of Business

FMS’s mission as an internal SSP is to provide reliable, cost-effective, employee-centric systems and 

services to USDA organizations, thus enabling customers to focus on serving this great Nation through 

their mission delivery. FMS’s goal is to provide the necessary activities for executing the Financial 

Management Lines of Business vision. The three central components of this vision are 

(1) communication, (2) governance, and (3) operations. 
46 Section I | Management's Discussion and Analysis

FMS’s key activities include:

• Budget execution; 

• General ledger accounting; 

• Financial reporting; 

• Audit support; 

• Payroll accounting; 

• Investment accounting; 

• Commercial vendor payments; 

• Temporary duty travel payments; 

• Permanent change of station employee relocation payments; 

• Grant payments; 

• Purchase card payments;

• Lease accounting; 

• Intergovernmental payments; 

• Intergovernmental collections; 

• Receivable management; 

• Property accounting; and 

• Grants management.

FMS’s primary objectives are to:

• Enhance the enterprise financial management services to provide faster, less expensive, and 

low-risk solutions to customers. 

• Integrate with the National Finance Center (NFC) payroll processing services. 

• Provide an enterprise grants management service featuring a full life-cycle management tool 

for grants administration to provide visibility to the government and the grant recipient. 

• Maintain a complete audit-compliant financial solution with full documentation meeting 

financial requirements. 

• Pursue continuous process, operational, and organizational improvements for shared services 

retained in the future state portfolio. 

• Provide powerful and flexible financial management and reporting. 

• Process administrative payments, collections, and certifications timely and accurately.
USDA | 2022 Agency Financial Report 47

Successes During Fiscal Year 2022

Grants Management 

The ezFedGrants (eFG) System is an online system used for managing a grant’s entire life cycle. 

Members of grant-seeking organizations use the eFG External Portal to view and apply for grant award 

opportunities, view grant award package documents, and submit claims and reports, among other 

actions. The eFG program is designed for servicing grants to organizations such as educational 

institutions and research organizations. 

OCFO’s FMS is the eFG system owner whose mission is to provide guidance and leadership in program 

management, governance, grants and agreements policy, and information technology (IT) related to the 

eFG community. The enterprise grants and agreements management solution encompasses six USDA 

agencies and includes more than 50 Financial Assistance Listings while transforming USDA’s grants 

and agreements capabilities. The eFG system supports various Federal initiatives, such as 

homeownership opportunities for low-and moderate-income rural Americans, organic agriculture, and 

numerous other grant and agreement-related programs to serve the American public better. 

In FY 2022, eFG’s initiatives: 

• Migrated the Agricultural Marketing Service (AMS) grant agreements from eFG to the 

U.S. Department of Health and Human Services (HHS) GrantSolutions grants systems in 

December 2021. GrantSolutions is a Grants Quality Service Management Office (QSMO) 

approved service provider. 

• Developing web services between HHS GrantSolutions and the USDA Financial Management 

Modernization Initiative (FMMI) Financial System. When completed in June 2023, this 

initiative will provide an option for other USDA grant-making agencies to migrate to the HHS 

GrantSolutions and for AMS to eliminate any manual processes between the two systems and 

provide seamless financial integration. 

• Completed the National Institute of Food and Agriculture (NIFA) project to improve the overall 

user experience and system reconciliation process related to the Department of Treasury 

Automated Standard Applications for Payments (ASAP). 

• Provided system training to 820 internal and external users on eFG. The eFG system has 

7,941 users (6,029 external users and 1,912 internal users) to date in FY 2022. 

• Continued to maintain a robust user education site, WikiGrants, as an internal repository of eFG 

related materials, such as user guides, training modules, and frequently asked questions that 

received 782 unique visitors in FY 2022. 

• Updated the eFG website to improve the overall user experience for the public-facing eFG 

recipient users.

• Deployed 3,197 new FY 2022 agreements. During the life of the eFG system, 20,821 

agreements have been deployed, and 9,080 are active or in draft status. 
48 Section I | Management's Discussion and Analysis

• Resolved 3,550 Tier 1 through Tier 2 (2,926 Tier 1 and 624 Tier 2) tickets through the OCFO 

Grants Helpdesk as a first responder to customer inquiries.

• Resolved 56 eFG system incidents (22 system defects and 34 enhancements) in FY 2022 via 

the eFG Post-Production Support Team. Additionally, 555 priority one-time system fixes were 

also resolved in FY 2022. 

USDA Budget Object Class Initiative

The purpose of this project is to support the USDA Budget Modernization effort. OCFO’s role in this 

effort is to ensure Budget Object Classification (BOC) code compliance with the Office of Management 

and Budget (OMB) Circular A-11, Section 83. USDA completed the discovery phase of the BOC 

initiative on October 31, 2021. USDA is implementing the OCFO’s decision to create a standard 

crosswalk table to produce the Digital Accountability and Transparency Act, Government-wide Treasury 

Account Symbol Adjusted Trial Balance System, and a standard Report for Budget Submission.

This phase of the BOC initiative ensures that the use of BOC’s in FMMI complies with Section 83 of 

OMB Circular A-11. This effort includes: 

• Analysis of all BOC Series.

• Updating the BOC Manual. 

• Performing analysis to ensure data quality. 

• Implementing change configurations in the core accounting system to prevent misuse of BOC. 

• Adding BOC standards to policy and process flows to maintain compliance with OMB Circular 

A-11.

• Providing training to mission area agencies and staff offices.

The BOC initiative will possibly extend into FY 2023. 

Enterprise Architecture Program

The OCFO Enterprise Architecture (EA) Program delivers cost-effective, mission-focused, 

collaboratively developed, and strategically aligned programs and services to its many stakeholders 

and the Nation. This ground-up effort achieved numerous focused objectives during FY 2022, 

including the following: 

• Implemented maturity upgrades to the OCFO EA Program through significantly increased 

skills and capabilities of the OCFO EA team and maturation of program procedures and 

governance. The program increased one entire maturity level on the U.S. Government 

Accountability Office (GAO) EA Maturity Scale. The increased program maturity has helped 

the program to continue meeting multiple Federal Legal Authorities and Regulatory Drivers, 

including the Clinger-Cohen Act of 1996 (CCA), the E-Government Act of 2002, OMB 

Circular A-11, OMB Circular A-130, OMB policy memorandum M-07-11, the House of 
USDA | 2022 Agency Financial Report 49

Representatives (H.R.) 1232—Federal Information Technology Acquisition Reform Act 

(FITARA), Capital Planning and Investment Control (CPIC), and the Federal Enterprise 

Architecture Framework.

• Fully implemented the revised and integrated system development life cycle within the OCFO 

by establishing EA oversight and accountability into decisions and governance of the OCFO IT 

infrastructure.

• Provided senior leadership with increased transparency and visibility regarding IT Management 

and Spend-Management, and a line of sight from strategic goals to business processes and 

continuing into the technology architecture (for example, data, software, hardware, and 

technology infrastructure). 

Building on its successes in FY 2022, the EA team has identified the following goals in FY 2023: 

• Continue integrating EA with Capital Planning, Enterprise IT Governance, Data Management, 

Performance Management, Enterprise Risk Management, FITARA and Acquisition 

Management, Program Management, Strategic Planning, and Strategic Human Capital 

Management. This integration ensures the continued achievement of coordinated decision 

making throughout the OCFO and in coordination with the Office of the Chief Information 

Officer (OCIO).

• Continue to review and advise on all Acquisition Approval Requests (AARs) for the 

Department that pertain to financial management systems acquisitions and spending. 

• Further develop and mature the IT Portfolio, programs, and financial resources of the OCFO to 

align with long-term mission requirements and strategic plans required by mandates and laws.

• Take action to advance the OCFO EA Program to the next level of maturity on the GAO EA 

Maturity Model scale. 

Capital Planning and Investment Control Program

The CPIC is a systematic approach to selecting, managing, and evaluating IT investments. CPIC is 

mandated by the CCA, which requires Federal agencies to focus on the results produced by IT 

investments. The OCFO CPIC Program identifies the processes and activities necessary to ensure that 

OCFO’s IT investments are well-planned, cost-effective, and support the missions and business goals 

of the agency and the Department. 

The CPIC team continually monitors OCFO’s IT portfolio, mitigating risks and ensuring the overall 

health of investments. Their accomplishments in FY 2022 were: 

• Improved the health of 95 percent of OCFO’s Major and Non-Major Investments, achieving 

Chief Information Officer (CIO) rating scores of 4 (Green) or higher.

• Maintained Investment Support Plans to monitor required artifacts for reporting purposes and 

eliminate identified weaknesses.
50 Section I | Management's Discussion and Analysis

• Alongside EA, provided guidance to the OCFO Project Management Office in the development 

of its Product Development Life Cycle. 

• Delineated Internal and External transfer costs within the IT Portfolio. 

Building on its successes in FY 2022, the CPIC team will achieve the following in FY 2023: 

• Continue to identify systems-specific costs within the OCFO IT Portfolio. 

• Establish the Financial Systems AAR review process to evaluate cost savings opportunities 

across the Department. 

• Achieve CIO rating scores of 4 (Green) or higher for 100 percent of OCFO’s Major and NonMajor Investments. 

• Incorporate the NFC Retirement Processing System into OCFO’s IT Portfolio as a 

Major Investment. 

Financial Management Modernization Initiative Intelligent Enterprise Transformation

The FMMI, USDA’s financial system of record, is based on a Systems, Applications, and Products 

(SAP)-platform that will be obsolete in 2027. Consequently, FMS will migrate to a next-generation 

SAP intelligent enterprise platform leveraging SAP S/4 High-Performance Analytic Appliance 

(HANA) technology. The new S/4 HANA system will be an in-memory platform allowing users to run 

real-time reports on operational and financial data. In preparation for the transition, FMS completed 

multiple prerequisite activities in FY 2022, including data profiling and cleansing, customer-vendor 

business partner integration, and customer code analysis. Also, FMS initiated the Information Life 

Cycle Management initiative to develop and implement a data archival strategy and system prior to 

Financial Intelligent Enterprise Transformation (FIET), reducing the cost and improving the efficiency 

of the new system. On completion of the prerequisite activities, the FIET transition effort will begin in 

2Q of FY 2023. The transition is scheduled to be completed in 2Q of FY 2025. 

SAP Contract, Lease, and Real Estate Management Module Within USDA’s EnterpriseWide Financial System, FMMI

The Federal Accounting Standards Advisory Board (FASAB) issued the Statement of Federal Financial 

Accounting Standards (SFFAS) 54 introduction, a new model for lease accounting with a mandated 

implementation date of October 1, 2023. SFFAS 54 addresses lease accounting standards by both 

lessees and lessors. For financial reporting purposes, all lease transactions must be recognized in 

accordance with SFFAS 54 when it becomes effective. FMS began preparatory SFFAS 54 

implementation efforts to meet the mandated timeline. FMS performed an Analysis of Alternatives and 

SAP Contract, Lease, and Real Estate Management module was selected as USDA’s enterprise-wide 

financial system FMMI solution. Implementation initiated in FY 2022 will enable FMS to meet the 

mandated timeline. 
USDA | 2022 Agency Financial Report 51

U.S. Department of Treasury, Bureau of Fiscal Service, Electronic Check Processing 

System (Mobile Check Capture Program)

FMS implemented the use of the Treasury’s Mobile Check Capture program, that allows agencies to 

deposit checks to the Electronic Check Processing (ECP) system, which eliminates the need to mail the 

checks to the actual Treasury Lockbox. Instead, all deposits will be submitted via a mobile phone 

application (app). Prior to adopting the Mobile Check Capture program, FMS staff would mail checks 

to the Treasury Lockbox along with remittance information, where USBANK staff would manually 

key the data into their system prior to interfacing with the Treasury’s ECP system to process the 

deposit of funds. By using Mobile Check Capture, checks are instantly recorded in the ECP system 

without mailing checks to USBANK, eliminating manual processing and postage costs. Additionally, 

deposits are recorded at Treasury the next business day versus 7 to 10 business days to submitting a 

check mailed to the USBANK Lockbox. 

SAP Enable Now

In March 2022, FMS successfully implemented SAP Enable Now (SEN) as part of FMS’ continued 

movement toward FIET implementation. This implementation was required due to SAP discontinuing 

support of the uPerform tool previously used to develop online FMMI user help procedures. SEN is a 

collaborative content authoring, management, and sharing platform that can produce instructor-led 

training, self-directed learning, and online performance materials for SAP and non-SAP systems. 

Previous FMMI Help documentation was migrated to the new SEN FMMI Help platform and is being 

updated to include the application. Also, new in-application content is being developed as online help 

procedures and e-Learning courses to improve support to agency clients using FMS’ financial 

management tools. 

System for Award Management Unique Entity Identifier

At the direction of the General Services Administration, USDA successfully migrated to the use of the 

System for Award Management (SAM), Unique Entity Identifier (UEI) as a replacement for the 

DUNS® number to verify Federal contractors by the April 2022 mandated timeline. This change allows 

for Federal entities to accurately track funding to a specific entity including contractors who have 

Federal contracts.
52 Section I | Management's Discussion and Analysis

Page Intentionally Blank 
USDA | 2022 Agency Financial Report 53

Section II 

Financial Information

Message from 

the Office of the Chief Financial Officer

It is my great privilege to present the Financial Statements for fiscal year (FY) 2022 on behalf of the 

United States Department of Agriculture (USDA or the Department).

I am pleased to report that USDA received an unmodified audit opinion on the financial statements 

from the Department’s Office of the Inspector General (OIG) for the seventh consecutive fiscal year. 

For our system of internal controls, the Department provided a modified statement of assurance in 

accordance with the Federal Managers’ Financial Integrity Act (FMFIA), Section 2, and the Office of 

Management and Budget (OMB) Circular No. A-123, Appendix A, because of two material 

weaknesses in internal control related to: (1) information technology (IT) and (2) financial 

management. There was also one instance of financial system non-conformance, which is also a 

non-compliance with the Federal Financial Management Improvement Act (FFMIA).

Moving forward, the Office of the Chief Financial Officer (OCFO) will work diligently to help USDA 

achieve an unmodified statement of assurance by: 

• Tracking the elements of each material weakness to recommendations (i.e., Corrective Action 

Plans) as provided by OIG in our tracking and reporting system, and using a checklist 

developed for that specific purpose. 

• Continuing to obtain monthly status updates from agencies regarding the progression of their 

completion. 

• Summarizing status updates regarding these weaknesses in discussions with OIG to possibly 

reduce the deficiency level.
54 Section II | Financial Information

These planned efforts are reflective of the emphasis that USDA renders as stewards of our budgetary 

resources, recognizing that it is ultimately you, the American taxpayer, that is its source. To ensure that 

this prioritization is always the case, the OCFO will continue to provide financial information that is 

reliable, timely, and useful, allowing the Department to execute its fiduciary responsibilities with a 

clear understanding of our fiscal picture. OCFO remains steadfast in our commitment to exercising the 

greatest integrity in assisting with the management of USDA’s financial portfolio and is continually 

seeking innovative ways to improve our systems and processes. We will persistently pursue efforts to 

ensure that USDA’s funds are accurately tracked and used solely for the purposes for which they 

were intended. 

Despite the ongoing effects of the pandemic, the staff of OCFO has persevered in meeting or exceeding 

established benchmarks for FY 2022. As the Deputy Chief Financial Officer of USDA, I am proud to 

present just a few of our more distinctive achievements from the fiscal year for your consideration: 

OCFO’s staff successfully managed the apportionment, allocation, tracking, and internal controls of 

$45.3 billion in USDA supplemental funding for the Coronavirus Aid, Relief and Economic Security 

Act, the Coronavirus Food Assistance Program, the American Rescue Plan Act, and the Infrastructure 

Investment and Jobs Act. The Financial Management Division took the lead on multiple 

interdepartmental missions, coordinating the agreement with Air Mobility Command for “Operation 

Fly Formula,” which obligated $24 million, and with the General Service Administration in the amount 

of $41 million. The Internal Control Division concentrated its efforts on the closure of OIG and 

Government Accountability Office (GAO) recommendations in line with the Secretary’s priorities. 

As a result, USDA nearly doubled our rate of closing GAO audits, moving from a 46 percent rate of 

closure to an 83 percent rate of closure. Similarly, the Department’s inventory of open OIG audits 

decreased in FY 2022 by 11 percent, from 82 percent to 71 percent, nearly doubling the rate of 

decrease from the prior year.

Our Mission Areas have been just as spectacular with their achievements this fiscal year. The Animal 

and Plant Health Inspection Service supported the Highly Pathogenic Avian Influenza (HPAI) and the 

African Swine Fever (ASF) emergency response efforts by processing 179 indemnity payments 

totaling $75 million in addition to processing grants and agreements totaling $8 million to customers to 

help stop the spread of HPAI and ASF respectively. The Research, Education, and Economics mission 

area focused on closing out expired agreements and reported zero open grant/agreement awards that 

had been expired for more than 2 years in the third quarter of FY 2022. The Forest Service provided 

technical assistance and support to the Secure Rural Schools (SRS) Reauthorization to ensure that 

states and counties received optimal funding, as well as trained more than 200 State and County 

treasurers to implement the new SRS requirements. Finally, the Rural Development mission area had a 

banner year, launching the Loan Guarantee Program to create more market opportunities, promote 

competition, and strengthen America’s food supply chain; investing $5.2 billion to build and improve 

critical rural infrastructure in 46 states and Puerto Rico; and providing $401 million in funding for 

high-speed internet access in rural areas.
USDA | 2022 Agency Financial Report 55

Although we have accomplished much this fiscal year, I would be remiss if I did not acknowledge that 

there is room for further improvement. To that end, OCFO will continue to closely monitor and 

facilitate the actions needed to achieve the proper closure of OIG and GAO audits and their associated 

recommendations. In addition, we will be perpetually vigilant in our endeavors to seek creative 

solutions to long-standing problems, manage our fiscal appropriations with the utmost care, and work 

tirelessly to continue to earn your trust and confidence every single workday. OCFO is wholly 

committed to the pursuit of excellence in federal financial management and is confident that we are 

well on the way to achieving that goal, as evidenced by the accomplishments highlighted in this letter. 

However, we will not rest on our laurels but will push forward in full awareness of our promise to you 

and in fulfillment of our mission, which is to shape an environment in which USDA officials have and 

use high-quality financial and performance information to make and implement effective policy, 

management, stewardship, and program decisions. 

Lynn M. Moaney 

Deputy Chief Financial Officer

November 14, 2022 
56	 Section II | Financial Information

Independent	Auditors	Report

OFFICE OF INSPECTOR GENERAL

United States Department of Agriculture

DATE: November 14, 2022

AUDIT

NUMBER: 50401-0021-11

TO: Lynn Moaney 

Deputy Chief Financial Officer

Office of the Chief Financial Officer

ATTN: Christopher Simmons 

Director

Internal Controls Division

FROM: Steve Rickrode 

Acting Assistant Inspector General for Audit 

SUBJECT: USDA’s Consolidated Financial Statements for Fiscal Years 2022 and 2021 

This report presents the results of our audits of the United States Department of Agriculture’s 

(USDA) consolidated financial statements for the fiscal years ending September 30, 2022, and 

2021. This report contains an unmodified opinion on the consolidated financial statements, as 

well as the results of our assessments of USDA’s internal control over financial reporting and 

compliance with laws and regulations. Your response is included in its entirety in Exhibit A. 

We appreciate the courtesies and cooperation extended to us by members of your staff during our 

audit fieldwork and subsequent discussions. This report contains publicly available information 

and will be posted in its entirety to our website (https://usdaoig.oversight.gov) in the near future. 
USDA | 2022 Agency Financial Report 57

AUDIT REPORT 50401-0021-11

Independent Auditor’s Report

Lynn Moaney 

Deputy Chief Financial Officer

Office of the Chief Financial Officer

The United States Department of Agriculture’s (USDA) Office of Inspector General (OIG) 

audited the consolidated financial statements of the Department for fiscal years 2022 and 2021. 

We also considered USDA’s internal control over financial reporting and tested USDA’s 

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

agreements that could have a direct effect on the determination of material financial statement 

amounts and disclosures on these consolidated financial statements.

The “Findings” section presents the material weaknesses and instances of noncompliance with 

laws and regulations, as of and for the year ended September 30, 2022. Exhibit A presents 

USDA’s response in its entirety. 

Report on the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of USDA, which comprise 

the consolidated balance sheets as of September 30, 2022 and 2021, and the related consolidated 

statements of net cost, and changes in net position; and the combined statements of budgetary 

resources for the fiscal years then ended and the related notes to the consolidated financial 

statements (hereinafter referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements referred to above present fairly, in all 

material respects, the financial position of USDA, as of September 30, 2022 and 2021, and its net 

costs, changes in net position, and budgetary resources for the years then ended, in accordance 

with United States of America (U.S.) generally accepted accounting principles.

Basis for Opinion

We conducted our audits in accordance with U.S. generally accepted government auditing 

standards. Our responsibilities under those standards are further described in the Auditor’s 

Responsibilities for the Audits of the Consolidated Financial Statements section of our report. 

We are required to be independent of the USDA 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 

opinion. 
58	 Section II | Financial Information

AUDIT REPORT 50401-0021-11

Other Matter

Interactive Data

Management has elected to reference information on websites or other forms of interactive data 

outside the financial statements to provide additional information for the users of its financial 

statements. Such information is not a required part of the basic financial statements or 

supplementary information required by the Federal Accounting Standards Advisory Board 

(FASAB). The information on these websites has not been subjected to any of our auditing 

procedures, and accordingly we do not express an opinion or provide any assurance on it. 

Responsibilities of Management for the Consolidated Financial Statements 

Management is responsible for (1) the preparation and fair presentation of these consolidated 

financial statements in accordance with U.S. generally accepted accounting principles; 

(2) preparing, measuring, and presenting required supplementary information (RSI) in 

accordance with U.S. generally accepted accounting principles; (3) preparing and presenting 

other information included in USDA’s agency financial report, and ensuring the consistency of 

that information with the audited financial statements and the RSI; and (4) designing, 

implementing, and maintaining effective internal control over financial reporting relevant to the 

preparation and fair presentation of the consolidated financial statements that are free from 

material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Audits of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 of the 

financial statements conducted in accordance with U.S. generally accepted government auditing 

standards will always detect a material misstatement or a material weakness 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, including omissions, are considered to be 

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 consolidated financial 

statements.

In performing an audit of financial statements in accordance with U.S. generally accepted 

government auditing standards, we: 

• Exercise professional judgment and maintain professional skepticism throughout the 

audits. 

• 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. 
USDA | 2022 Agency Financial Report 59

AUDIT REPORT 50401-0021-11

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

disclosures in the consolidated financial statements in order to obtain audit evidence that 

is sufficient and appropriate to provide a basis for our opinion. 

• Obtain an understanding of internal control relevant to our audit of the consolidated 

financial statements in order to design audit procedures that are appropriate in the 

circumstances, but not for the purpose of expressing an opinion on the effectiveness of 

USDA’s internal control over financial reporting. Accordingly, no such opinion is 

expressed.

• 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 consolidated financial statements.

• Perform other procedures we consider necessary in the circumstances.

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 

control-related matters that we identified during the consolidated financial statement audit.

Required Supplementary Information

U.S. generally accepted accounting principles issued by FASAB require that the RSI, which 

includes the Management’s Discussion and Analysis (MD&A), be presented to supplement the 

consolidated financial statements. Such information is the responsibility of management and, 

although not part of the financial statements, is required by FASAB, which considers it to be an 

essential part of financial reporting for placing the consolidated financial statements in 

appropriate operational, economic, or historical context. We have applied certain limited 

procedures to the RSI in accordance with U.S. generally accepted auditing standards, which 

consisted of inquiries of management about the methods of preparing the RSI and comparing the 

information for consistency with management’s responses to the auditor’s inquiries, the 

consolidated financial statements, and other knowledge we obtained during the audits of the 

consolidated financial statements, in order to report omissions or material departures from 

FASAB guidelines, if any, identified by these limited procedures. We did not audit and we do 

not express an opinion or provide any assurances on the RSI because the limited procedures we 

applied do not provide sufficient evidence to express an opinion or provide any assurance.

Other Information

USDA’s other information contains a wide range of information, some of which is not directly 

related to the consolidated financial statements. This information is presented for the purposes 

of additional analysis and is not a required part of the consolidated financial statements or the 

RSI. Management is responsible for the other information included in USDA’s agency financial 

report. The other information comprises USDA’s Non-Discrimination Statement, Table of 

Contents, Message from the Secretary, Message from the Office of the Chief Financial Officer, 

Other Information, and Abbreviations-Acronyms sections but does not include the consolidated 
60	 Section II | Financial Information

AUDIT REPORT 50401-0021-11

financial statements and our auditor’s report thereon. Our opinion on the consolidated financial 

statements does not cover the other information, and we do not express an opinion or provide 

any form of assurance thereon.

In connection with our audits of the consolidated financial statements, our responsibility is to 

read the other information and consider whether a material inconsistency exists between the 

other information and the consolidated financial statements, or the other information otherwise 

appears to be materially misstated. If, based on the work performed, we conclude that an 

uncorrected material misstatement of the other information exists, we are required to describe in 

our report. 

Report on Internal Control Over Financial Reporting

Our consideration of internal control was for the limited purpose described below and was not 

designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies or to express an opinion on the effectiveness of USDA’s internal control 

over financial reporting. However, material weaknesses or significant deficiencies may exist that 

have not been identified. As described below, we identified certain deficiencies in internal 

control that we consider to be material weaknesses.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent, or detect and correct, misstatements on a timely basis. A material weakness is a 

deficiency or a combination of deficiencies, in internal control over financial reporting, such that 

there is a reasonable possibility that a material misstatement of USDA’s consolidated financial 

statements will not be prevented, or detected and corrected on a timely basis. We consider the 

deficiencies in overall financial management and the information technology (IT) security 

program, described in “Findings,” Section 1, to be material weaknesses.

A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is 

less severe than a material weakness, yet important enough to merit attention by those charged 

with governance. 

In planning and performing our audit of USDA’s consolidated financial statements as of and for 

the year ended September 30, 2022, in accordance with U.S. generally accepted government 

auditing standards, we considered USDA’s internal control relevant to the consolidated financial 

statement audit in order to design audit procedures that are appropriate in the circumstances, but 

not for the purpose of expressing an opinion on the effectiveness of USDA’s internal control 

over financial reporting. Accordingly, we do not express an opinion on USDA’s internal control 

over financial reporting. We are required to report all deficiencies that are considered to be 

significant deficiencies or material weaknesses. We did not consider all internal controls 

relevant to operating objectives as broadly defined by the Federal Managers’ Financial Integrity 

Act of 1982 (FMFIA). 
USDA | 2022 Agency Financial Report 61

AUDIT REPORT 50401-0021-11

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

As part of obtaining reasonable assurance about whether USDA’s consolidated financial 

statements as of and for the year ended September 30, 2022, are free of 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 

consolidated 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 instances of noncompliance. 

Federal Financial Management Improvement Act of 1996 (FFMIA) 

We also performed tests of USDA’s compliance with certain provisions referred to in 

Section 803(a) of FFMIA. Providing an opinion on compliance with FFMIA was not an 

objective of our engagement and, accordingly, we do not express such an opinion. The results of 

our tests of FFMIA disclosed instances, described in more detail in the “Findings,” Section 2, of 

this report, where USDA was not substantially compliant with Federal Financial Management 

System Requirements (FFMSR), applicable Federal accounting standards, and the U.S. Standard 

General Ledger (USSGL) at the transaction level.

Antideficiency Act (ADA)

Title 31 U.S. Code (U.S.C.) Section 1517 states that an officer or an employee of the United 

States Government may not make or authorize an expenditure or obligation exceeding an 

apportionment or an amount permitted by regulations as prescribed by Title 31 U.S.C. 

Section 1514. In fiscal year 2022, the Department reported five confirmed and two potential 

ADA violations in its agency financial report.

Payment Integrity Information Act of 2019 (PIIA) 

During fiscal year 2022, the results of our tests disclosed instances of noncompliance with the 

requirements of PIIA,1 namely five high-risk programs did not meet the PIIA compliance 

requirements for reporting one or more of the following: annual reduction targets, gross 

improper payment rates of less than 10 percent, or corrective action plans. Another high-risk 

program was not timely reported on www.paymentaccuracy.gov. A separate report was issued 

with further details on the Department’s compliance with improper payment requirements.2

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, 

contracts, and grant agreements applicable to USDA that have a direct effect on the 

determination of material amounts and disclosures in USDA’s consolidated financial statements, 

and to perform certain other limited procedures. Accordingly, we did not test compliance with 

all laws, regulations, contracts, and grant agreements applicable to USDA. We caution that 

noncompliance may occur and not be detected by these tests.

 

1 Payment Integrity Information Act of 2019 (PIIA), Pub. L. No. 116-117, 134 Stat. 113. 2 Audit Report 50024-0002-24, U.S. Department of Agriculture’s Fiscal Year 2021 Compliance with Improper 

Payment Requirements, June 2022.
62	 Section II | Financial Information

AUDIT REPORT 50401-0021-11

Purpose of the Report on Internal Control Over Financial Reporting and the Report on 

Compliance with Laws, Regulations, Contracts, and Grant Agreements 

The purpose of the “Report on Internal Control Over Financial Reporting” and the “Report on 

Compliance with Laws, Regulations, Contracts, and Grant Agreements” sections is solely to 

describe the scope of our testing of internal control and compliance and the results of that testing, 

and not to provide an opinion on the effectiveness of USDA’s internal control or compliance. 

These reports are an integral part of an audit performed in accordance with U.S. generally 

accepted government auditing standards in considering USDA’s internal control and compliance. 

Accordingly, these reports are not suitable for any other purpose. 

Management’s Response 

Management’s response to the report is presented in Exhibit A. We did not audit USDA’s 

response and, accordingly, we express no opinion on it.

Steve Rickrode

Acting Assistant Inspector General for Audit 

Washington, D.C. 

November 14, 2022 
USDA | 2022 Agency Financial Report 63

AUDIT REPORT 50401-0021-11

Findings 

Section 1: Material Weaknesses in Internal Control Over Financial 

Reporting 

Finding 1: Improvements are Needed in Overall Financial Management

The material weakness for financial management is due to improvements needed in accounting 

and internal controls related to the Natural Resources Conservation Service (NRCS). In 

conducting our review, we noted the following area where improvements are needed in overall 

financial management, described below.

NRCS disclosed a material weakness in controls over obligations. NRCS management continues 

to perform ongoing remediation efforts to resolve prior years’ findings with respect to 

undelivered orders. Despite the ongoing remediation efforts, NRCS continues to lack effective 

internal controls to ensure the completeness and accuracy of its budgetary account balances 

reported in the financial statements.

In its FMFIA Report on Management Control for fiscal year 2022, the Department reported the 

following corrective action plan to address the outstanding weakness from fiscal year 2021 that 

remain a material weakness for fiscal year 2022, described below.

NRCS, in fiscal year 2023, plans to continue ongoing process improvements to maintain, 

monitor, and certify unliquidated obligations to ensure the accuracy of reported balances and 

maintenance of sufficient documentation. 

Since USDA has actions planned and in progress, we are making no further recommendations 

herein.
64	 Section II | Financial Information

AUDIT REPORT 50401-0021-11

Finding 2: Improvements are Needed in Overall Information Technology 

Security Program

As required by the Federal Information Security Modernization Act of 2014 (FISMA), OIG 

reviewed USDA’s ongoing efforts to improve its IT security program and practices during fiscal 

year 2022.3

 USDA continues to take positive steps to improve its IT security posture, but many 

weaknesses remain. Out of 25 previously open recommendations identified during the fiscal 

years 2020 and 2021 FISMA performance audits, we determined USDA successfully closed 

8 recommendations during our fieldwork that ended on June 30, 2022. OIG also issued 

seven new recommendations based on security weaknesses identified in fiscal year 2022. 

Office of Management and Budget (OMB) establishes standards for an effective level of security 

and considers “Managed and Measurable” to be a sufficient level. However, OIG found the 

Department’s maturity level to be at the “Consistently Implemented” level. Based on OMB’s 

criteria, the Department’s overall score indicates an ineffective level of security. The 

Department and its agencies must develop and implement an effective plan to mitigate security 

weaknesses identified in the prior fiscal year recommendations. The Office of the Chief 

Information Officer generally concurred with the findings and recommendations in the report. 

 

3 Audit Report 50503-0009-12, U.S. Department of Agriculture, Office of the Chief Information Officer, Fiscal 

Year 2022 Federal Information Security Modernization Act, Sept. 2022.
USDA | 2022 Agency Financial Report 65

AUDIT REPORT 50401-0021-11

Section 2: Noncompliance with Laws and Regulations

Finding 3: Lack of Substantial Compliance with FFMIA Requirements

FFMIA requires agencies to annually assess whether their financial management systems comply 

substantially with (1) FFMSR, (2) applicable Federal accounting standards, and (3) the USSGL 

at the transaction level. FFMIA also requires auditors to report in their Chief Financial Officer 

Act financial statement audit reports whether financial management systems substantially 

comply with FFMIA’s system requirements. In addition, FISMA requires each agency to report 

significant information security deficiencies, relating to financial management systems, as a lack 

of substantial compliance under FFMIA. 

During fiscal year 2022, USDA evaluated its financial management systems to assess 

compliance with FFMIA. The Department reported that it was not compliant with FFMSR, 

applicable accounting standards, USSGL at the transaction level, and FISMA requirements. As 

noted in its MD&A, USDA continues its work to meet FFMIA and FISMA objectives. 

Specifically, in its FFMIA and FMFIA reports, the Department reported an ineffective 

information security program due to many longstanding weaknesses with outstanding 

recommendations. See Finding 2 of this report for more details. 

Additionally, in its FFMIA report, the Department noted noncompliance with two of its 

component agencies relating to financial management, described below.

1. Commodity Credit Corporation (CCC) was non-compliant with USSGL. The financial 

management systems did not record certain accounting events at the transaction level in 

accordance with the USSGL. The agency continues to implement compensating controls 

over the accounting for obligation activity, making significant progress. CCC continues 

implementing its program obligation activity into the Financial Management 

Modernization Initiative through a phased approach.

2. NRCS noted deficiencies in applicable federal accounting standards, including the 

USSGL at the transaction level. Specifically, incorrect posting logic was being used for 

recoveries of prior year unpaid obligations. NRCS continues working to mitigate 

deficiencies and substantially comply with FFMIA. 

See Finding 1 of this report for more details on the NRCS issue. 

Due to planned actions, we are making no further recommendations in this report. 
66	 Section II | Financial Information

AN EQUAL OPPORTUNITY EMPLOYER

 November 14, 2022 

 

TO: Steve Rickrode 

 Acting Assistant Inspector General for Audit 

Office of Inspector General

FROM: Lynn Moaney /S/

Deputy Chief Financial Officer

SUBJECT: U.S. Department of Agriculture’s Financial Statements for Fiscal Years 

2022 and 2021 

The Department is pleased to respond to your audit report on the financial statements 

for fiscal years 2022 and 2021. 

We concur with the findings in the report. We will continue with actions planned and in 

progress to address the findings. 

I would like to express my appreciation for the cooperation and professionalism 

displayed by your staff and your contract auditors during the audit. 

 

United States

Department of

Agriculture

Office of the Chief

Financial Officer

1400 Independence

Avenue, SW

Washington, DC

20250

Agency	Response	to	Auditors	Report
USDA | 2022 Agency Financial Report 67

Financial Statements

Consolidated Balance Sheets

As of September 30, 2022 and 2021 ($ in millions)

Item 2022 2021

Assets (Note 2): 

Intragovernmental: 

Fund Balance with Treasury (Note 3) $ 284,081 $ 237,610 

Investments, Net (Note 5) 268 256 

Accounts Receivable, Net (Note 6) 495 320 

Advances and Prepayments 54 42 

Total Intragovernmental 284,898 238,228 

Other than Intragovernmental:

Cash and Other Monetary Assets (Note 4) 492 298 

Accounts Receivable, Net (Note 6) 6,706 5,353 

Loans Receivable, Net (Note 7) 

 Commodity Loans, Net 239 393 

 Direct Loans and Loan Guarantees, Net (Note 7) 118,254 113,057 

 Subtotal 118,493 113,450 

Negative Liability for Loan Guarantees (Note 7) 1,939 601 

Inventory and Related Property, Net (Note 8) 28 23 

General Property, Plant, and Equipment, Net (Note 9) 2,835 2,588 

Advances and Prepayments 491 587 

Investments, Net (Note 5) 3 3 

Total Other than Intragovernmental 130,987 122,903 

Total Assets 415,885 361,131 

Stewardship PP&E (Note 10) 

Liabilities (Note 11): 

Intragovernmental: 

Accounts Payable — 1 

Debt (Note 12) 139,187 132,821 

Advances from Others and Deferred Revenue 24 14 

Other Liabilities (Note 16) 14,236 11,950 

Total Intragovernmental 153,447 144,786 

Other than Intragovernmental:

Accounts Payable 2,524 2,353 

Federal Employee Benefits Payable (Note 13) 1,334 1,376 

Environmental and Disposal Liabilities (Note 14) 241 258 

Benefits Due and Payable 8,479 8,580 

Insurance and Guarantee Program Liabilities (Note 15) 17,325 14,226 

Advances from Others and Deferred Revenue 153 122 

Other Liabilities (Notes 16, 17 & 18) 9,387 12,977 

Total Other than Intragovernmental 39,443 39,892 

Total Liabilities 192,890 184,678 

Commitments and Contingencies (Note 18) 

Net Position: 

Unexpended Appropriations - Funds from Dedicated Collections (Note 19) 661 468 

Unexpended Appropriations - Funds from Other Than Dedicated Collections 168,603 127,658 

Total Unexpended Appropriations (Consolidated) 169,264 128,126 

Cumulative Results of Operations - Funds from Dedicated Collections (Note 19) 3,878 3,473 

Cumulative Results of Operations - Funds from Other Than Dedicated Collections 49,853 44,854 

Total Cumulative Results of Operations (Consolidated) 53,731 48,327 

Total Net Position 222,995 176,453 

Total Liabilities and Net Position $ 415,885 $ 361,131 

The accompanying notes are an integral part of these statements.
68 Section II | Financial Information

Consolidated Statements of Net Cost

For the Year Ended September 30, 2022 and 2021 ($ in millions)

Item 2022 2021

Farm Production and Conservation: 

Gross Costs $ 37,006 $ 54,802

Less: Earned Revenue 4,933 4,449

Net Costs 32,073 50,353

Food, Nutrition, and Consumer Services: 

Gross Costs 192,464 163,254

Less: Earned Revenue 94 65

Net Costs 192,370 163,189

Food Safety: 

Gross Costs 1,374 1,370

Less: Earned Revenue 246 262

Net Costs 1,128 1,108

Marketing and Regulatory Programs: 

Gross Costs 4,893 6,640

Less: Earned Revenue 1,162 812

Net Costs 3,731 5,828

Natural Resources and Environment:

Gross Costs 9,076 8,278

Less: Earned Revenue 785 768

Net Costs 8,291 7,510

Rural Development: 

Gross Costs 4,814 4,517

Less: Earned Revenue 3,217 3,290

Net Costs 1,597 1,227

Research, Education, and Economics: 

Gross Costs 3,495 3,175

Less: Earned Revenue 82 105

Net Costs 3,413 3,070

Trade and Foreign Agricultural Affairs: 

Gross Costs 467 475

Less: Earned Revenue 20 32

Net Costs 447 443

Staff Offices:

Gross Costs 1,821 1,661

Less: Earned Revenue 243 243

Net Costs 1,578 1,418

Total Gross Costs 255,410 244,172

Less: Total Earned Revenue 10,782 10,026

Net Cost of Operations (Note 20) $ 244,628 $ 234,146

The accompanying notes are an integral part of these statements.
USDA | 2022 Agency Financial Report 69

Consolidated Statement of Changes in Net Position

For the Year Ended September 30, 2022 ($ in millions)

Item Funds from 

Dedicated 

Collections 

(Consolidated 

Totals) (Note 19)

Funds from Other 

Than Dedicated 

Collections 

(Consolidated 

Totals) Consolidated Total

Unexpended Appropriations: 

Beginning Balances $ 468 $ 127,658 $ 128,126 

Appropriations Received 12 285,236 285,248 

Appropriations Transferred In (Out) 285 (358) (73)

Other Adjustments — (21,650) (21,650)

Appropriations Used (104) (222,283) (222,387)

Net Change in Unexpended Appropriations 193 40,945 41,138 

Total Unexpended Appropriations 661 168,603 169,264 

Cumulative Results of Operations: 

Beginning Balances 3,473 44,854 48,327 

Other Adjustments — (553) (553)

Appropriations Used 104 222,283 222,387 

Non-exchange Revenue 623 31,306 31,929 

Donations and Forfeitures of Cash and Cash Equivalents 1 2 3 

Transfers In (Out) without Reimbursement 1,151 (1,429) (278)

Imputed Financing 30 975 1,005 

Other (234) (4,227) (4,461)

Net Cost of Operations (1,270) (243,358) (244,628)

Net Change in Cumulative Results of Operations 405 4,999 5,404 

Cumulative Results of Operations 3,878 49,853 53,731 

Net Position $ 4,539 $ 218,456 $ 222,995 

The accompanying notes are an integral part of these statements.
70 Section II | Financial Information

Consolidated Statement of Changes in Net Position

For the Year Ended September 30, 2021 ($ in millions) 

Item Funds from 

Dedicated 

Collections 

(Consolidated 

Totals) (Note 19)

Funds from Other 

Than Dedicated 

Collections 

(Consolidated 

Totals) Consolidated Total

Unexpended Appropriations: 

Beginning Balances $ 191 $ 82,751 $ 82,942 

Appropriations Received 12 285,680 285,692 

Appropriations Transferred In (Out) 285 (537) (252)

Other Adjustments — (15,268) (15,268)

Appropriations Used (20) (224,968) (224,988)

Net Change in Unexpended Appropriations 277 44,907 45,184 

Total Unexpended Appropriations 468 127,658 128,126 

Cumulative Results of Operations: 

Beginning Balances 3,283 30,815 34,098 

Other Adjustments — (233) (233)

Appropriations Used 20 224,968 224,988 

Non-exchange Revenue 230 25,688 25,918 

Donations and Forfeitures of Cash and Cash Equivalents 1 — 1 

Transfers In (Out) without Reimbursement 1,345 (1,373) (28)

Imputed Financing 63 903 966 

Other (99) (3,138) (3,237)

Net Cost of Operations (1,370) (232,776) (234,146)

Net Change in Cumulative Results of Operations 190 14,039 14,229 

Cumulative Results of Operations 3,473 44,854 48,327 

Net Position $ 3,941 $ 172,512 $ 176,453 

The accompanying notes are an integral part of these statements.
USDA | 2022 Agency Financial Report 71

Combined Statements of Budgetary Resources

For the Years Ended September 30, 2022 and 2021 ($ in millions) 

2022 2021

Budgetary

Non-Budgetary 

Credit Reform 

Financing Accounts Budgetary

Non-Budgetary 

Credit Reform 

Financing Accounts

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, Net 

(Discretionary and Mandatory) $ 115,631 $ 4,849 $ 97,027 $ 4,725 

Appropriations (Discretionary and Mandatory) 293,956 3 273,612 6 

Borrowing Authority (Discretionary and Mandatory) 11,978 17,050 13,207 14,904 

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 10,665 10,984 8,536 12,365 

Total Budgetary Resources 432,230 32,886 392,382 32,000 

Status of Budgetary Resources:

New Obligations and Upward Adjustments (Total) 276,458 22,057 277,308 20,631 

Unobligated Balance, End of Year:

Apportioned, Unexpired Accounts 60,926 10,303 73,017 10,675 

Exempt from Apportionment, Unexpired Accounts 276 — 85 — 

Unapportioned, Unexpired Accounts 39,041 526 8,241 694 

Unexpired Unobligated Balance, End of Year 100,243 10,829 81,343 11,369 

Expired Unobligated Balance, End of Year 55,529 — 33,731 — 

Unobligated Balance, End of Year (Total) 155,772 10,829 115,074 11,369 

Total Budgetary Resources 432,230 32,886 392,382 32,000 

Outlays, Net, and Disbursements, Net:

Outlays, Net (Total) (Discretionary and Mandatory) 251,031 239,467 

Distributed Offsetting Receipts (-) (5,796) (4,249)

Agency Outlays, Net (Discretionary and Mandatory) $ 245,235 $ 235,218 

Disbursements, Net (Total) (Mandatory) $ 6,899 $ 4,025 

The accompanying notes are an integral part of these statements. 
72 Section II | Financial Information

Notes to the Financial Statements 

As of September 30, 2022, and 2021 ($ in millions) 

NOTE 1: Summary of Significant Accounting Policies

Reporting Entity

U.S. Department of Agriculture (USDA or the Department) provides a wide variety of services in the 

United States and around the world. USDA is organized into eight distinct mission areas and their 

agencies that execute these missions, including staff offices for reporting listed below: 

Farm Production and Conservation

• Farm Production and Conservation Business Center 

• Farm Service Agency

• Commodity Credit Corporation 

• Risk Management Agency

• Natural Resources Conservation Service 

Food, Nutrition, and Consumer Services

• Food and Nutrition Service 

Food Safety

• Food Safety and Inspection Service 

Marketing and Regulatory Programs

• Agricultural Marketing Service

• Animal and Plant Health Inspection Service 

Natural Resources and Environment

• Forest Service

Rural Development (Rural Housing Service, Rural Utility Service and Rural Business 

Cooperative Service)

Research, Education, and Economics 

• Agricultural Research Service

• National Agricultural Statistics Service

• National Institute of Food and Agriculture 

• Economic Research Service
USDA | 2022 Agency Financial Report 73

Trade and Foreign Agricultural Affairs

• Foreign Agricultural Service

▪ U.S. Codex Office 

Staff Offices

The Commodity Credit Corporation listed above is not separately identified in the USDA Organization 

Chart but is a component required to prepare financial statements. The Office of the Chief Scientist is 

reported in staff offices for financial statements but is listed with the Under Secretary for Research, 

Education, and Economics in the USDA Organization Chart because the agencies that comprise the 

mission area fund its operations. 

The reporting entity is a component of the U.S. Government. For this reason, some of the assets and 

liabilities reported by the entity may be eliminated for Government-wide reporting because they are 

offset by assets and liabilities of another U.S. Government entity. These financial statements should be 

read with the realization that they are for a component of the U.S. Government. See Note 25 for 

Disclosure Entities and Related Parties that are not part of consolidation. 

Consolidation

The financial statements consolidate results of all agencies and staff offices. The effects of 

intradepartmental activity and balances are eliminated, except for the Statement of Budgetary 

Resources (SBR) which is presented on a combined basis. The financial statements are prepared in 

accordance with generally accepted accounting principles for the Federal Government. 

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that 

affect the amounts reported in the financial statements and accompanying notes. Actual results could 

differ from those estimates.

Fund Balance with Treasury (FBWT) and Funds from Dedicated Collections

FBWT is an asset of a reporting entity and a liability of the General Fund. Similarly, investments in 

Federal Government securities that are held by Dedicated Collections accounts are assets of the 

reporting entity responsible for the Dedicated Collections and liabilities of the General Fund. In both 

cases, the amounts represent commitments by the Government to provide resources for particular 

programs, but they do not represent net assets to the Government as a whole. 

When the reporting entity seeks to use FBWT or investments in Government securities to liquidate 

budgetary obligations, Treasury will finance the disbursements in the same way it finances all other 

disbursements, using some combination of receipts, other inflows, and borrowing from the public 

(if there is a budget deficit).
74 Section II | Financial Information

Revenue and Other Financing Sources

As a component of the Government-wide reporting entity, the entity is subject to the Federal budget 

process, which involves appropriations that are provided annually and appropriations that are provided 

on a permanent basis. The financial transactions that are supported by budgetary resources, which 

include appropriations, are generally the same transactions reflected in entity and the 

Government‐wide financial reports. 

The reporting entity’s budgetary resources reflect past congressional action and enable the entity to 

incur budgetary obligations, but they do not reflect assets to the Government as a whole. Budgetary 

obligations are legal obligations for goods, services, or amounts to be paid based on statutory 

provisions (e.g., Social Security benefits). After budgetary obligations are incurred, Treasury will make 

disbursements to liquidate the budgetary obligations. 

Revenue from exchange transactions is recognized when persuasive evidence of an arrangement exists, 

delivery has occurred or services have been rendered, sales price is fixed or determinable, and 

collection is reasonably assured. In certain cases, the prices charged by the Department are set by law 

or regulation, which for program and other reasons may not represent full cost. Prices set for products 

and services offered through the Department’s working capital funds are intended to recover the full 

costs incurred by these activities. Revenue from non-exchange transactions is recognized when a 

specifically identifiable, legally enforceable claim to resources arises, to the extent that collection is 

probable and the amount is reasonably estimable. Appropriations are recognized as a financing source 

when used. An imputed financing source is recognized for costs subsidized by other Government 

entities.

Investments

The Department is authorized to invest certain funds in excess of its immediate needs in Treasury 

securities. Investments in non-marketable par value Treasury securities are classified as held to 

maturity and are carried at cost. Investments in market-based Treasury securities are classified as held 

to maturity and are carried at amortized cost. The amortized cost of securities is based on the purchase 

price adjusted for amortization of premiums and accretion of discounts using the straight-line method 

over the term of the securities.

Accounts Receivable

Accounts receivable are reduced to net realizable value by an allowance for uncollectible accounts. 

The adequacy of the allowance is determined based on past experience and age of outstanding 

balances.

Direct Loans and Loan Guarantees

Direct loans obligated and loan guarantees committed after fiscal year (FY) 1991 are reported based on 

the present value of the net cash-flows estimated over the life of the loan or guarantee. The difference 

between the outstanding principal of the loans and the present value of their net cash inflows is 

recognized as a subsidy cost allowance; the present value of estimated net cash outflows of the loan 
USDA | 2022 Agency Financial Report 75

guarantees is recognized as a liability for loan guarantees. The subsidy expense for direct or guaranteed 

loans disbursed during the year is the present value of estimated net cash outflows for those loans or 

guarantees. A subsidy expense also is recognized for modifications made during the year to loans and 

guarantees outstanding and for reestimates made as of the end of the year to the subsidy allowances or 

loan guarantee liability for loans and guarantees outstanding. 

Direct loans obligated and loan guarantees committed before FY 1992 are valued using either the 

present-value or net realizable methods. Under the present-value method, the outstanding principal of 

direct loans is reduced by an allowance equal to the difference between the outstanding principal and 

the present value of the expected net cash flows. The liability for loan guarantees is the present value 

of expected net cash outflows due to the loan guarantees. Under the net realizable value method, the 

average rate of the last five years of write-offs is used.

Inventories and Related Property

Commodity inventory, referred to as goods held under price support and stabilization programs in 

Statement of Federal Financial Accounting Standards (SFFAS) No. 3, Accounting for Inventory and 

Related Property, issued by the Federal Accounting Standards Advisory Board (FASAB), represent 

commodities acquired by the Commodity Credit Corporation (CCC) for donation or price support 

purposes. Commodities are eventually sold or otherwise disposed of to help satisfy economic goals. 

Acquisition is generally made through commodity loan forfeitures, use of Commodity Certificate 

Exchange, or by purchase of commodities on the open market.

Inventory purchases are initially recorded at acquisition cost, including transportation, plus processing 

and packaging costs incurred after acquisition. Acquisition cost for loan forfeitures is the amount of the 

loan settlement, excluding interest. The commodity is revalued at the lower of cost or the net realizable 

value in accordance with SFFAS No. 3. 

Commodity inventory is not held in reserve for future sale. All commodity inventory on hand at yearend is anticipated to be donated or transferred during the next fiscal year. CCC has no excess, obsolete 

or unserviceable inventory. 

Property, Plant and Equipment (PP&E)

PP&E are stated at cost less accumulated depreciation. Depreciation is determined using the straightline method over the estimated useful lives of the assets. Useful lives for PP&E are disclosed in Note 

9. Capitalization thresholds for personal property and real property are $25,000; and $100,000 for 

internal use software. There are no restrictions on the use or convertibility of PP&E. 

Pension and Other Retirement Benefits

Pension and other retirement benefits (primarily retirement health care benefits) expense is recognized 

at the time the employees’ services are rendered. The expense is equal to the actuarial present value of 

benefits attributed by the pension plan’s benefit formula, less the amount contributed by the 

employees. An imputed cost is recognized for the difference between the expense and contributions 

made by and for employees. 
76 Section II | Financial Information

Workers’ Compensation Benefits

The Federal Employees’ Compensation Act (FECA) provides wage replacement and medical cost 

protection to covered Federal civilian employees injured on the job, employees who have incurred a 

work-related occupational disease, and beneficiaries of employees whose death is attributable to a 

job‐related injury or occupational disease. The FECA program is administered by the U.S. Department 

of Labor (DOL), which initially pays valid claims and subsequently seeks reimbursement from the 

Federal agencies employing the claimants. DOL provides the actuarial liability for claims outstanding 

at the end of each fiscal year. This liability includes the estimated future costs of death benefits, 

workers’ wage replacement, medical, and miscellaneous costs for approved compensation cases. 

Funds from Dedicated Collections

In accordance with SFFAS 43, Funds from Dedicated Collections which became effective October 1,

2012, USDA has reported the funds from dedicated collections for which it has program management 

responsibility when the following three criteria are met: 1) a statute committing the Federal 

Government to use specifically identified revenues and/or other financing sources that are originally 

provided to the Federal Government by a non-Federal source only for designated activities, benefits or 

purposes; 2) explicit authority for the fund to retain revenues and/or other financing sources not used in 

the current period for future use to finance the designated activities, benefits, or purposes; and 3) a 

requirement to account for and report on the receipt, use, and retention of the revenues and/or other 

financing sources that distinguishes the fund from the Federal Government’s general revenues. 

Contingencies

Contingent liabilities are recognized when a past event or exchange transaction has occurred, a future 

outflow or other sacrifice of resources is probable, and the future outflow or sacrifice of resources is 

measurable.

Allocation Transfers

USDA is a party to allocation transfers with other Federal agencies as both a transferring (parent) 

entity and/or a receiving (child) entity. Allocation transfers are legal delegations by one department of 

its authority to obligate budget authority and outlay funds to another department. A separate fund 

account (allocation account) is created in the U.S. Treasury as a subset of the parent fund account for 

tracking and reporting purposes. All allocation transfers of balances are credited to this account, and 

subsequent obligations and outlays incurred by the child entity are charged to this allocation account as 

they execute the delegated activity on behalf of the parent entity.

USDA allocates funds, as the parent, to the Department of the Interior, Department of Defense, 

Department of Housing and Urban Development, Agency for International Development, and the 

Small Business Administration. USDA receives allocation transfers, as the child, from the Department 

of Labor, Department of Transportation, Department of the Interior, Agency for International 

Development, Economic Development Administration, Appalachian Regional Commission, and the 

Delta Regional Authority. 
USDA | 2022 Agency Financial Report 77

Inter-Entity Costs 

Goods and services are received from other federal entities at no cost or at a cost less than the full cost 

to the providing federal entity. Consistent with accounting standards, certain costs of the providing 

entity that are not fully reimbursed by the Department are recognized as imputed cost [in the Statement 

of Net Cost] and are offset by imputed revenue [in the Statement of Changes in Net Position]. Such 

imputed costs and revenues relate to business-type activities (if applicable), employee benefits, and 

claims to be settled by the Treasury Judgment Fund. However, unreimbursed costs of goods and 

services other than those identified above are not included in our financial statements. 

Fiduciary Activities

Fiduciary activities are the collection or receipt, and the management, protection, accounting, 

investment, and disposition by the Federal Government of cash or other assets in which non-Federal 

individuals or entities have an ownership interest that the Federal Government must uphold. Fiduciary 

assets are not assets of the Federal Government and are not recognized on the balance sheet. 

Asbestos-Related Cleanup Costs

Effective October 1, 2012, Technical Bulletin (TB) 2006-1, Recognition and Measurement of 

Asbestos-Related Cleanup Costs, as amended, requires an estimate of both friable and non-friable 

asbestos-related cleanup costs; recognition of a liability and related expense for those costs that are 

both probable and reasonably estimable; and disclosure of information related to friable and 

non‐friable asbestos-related cleanup costs that are probable but not reasonably estimable in a note to 

the financial statements. 

Deferred Maintenance and Repairs

Deferred maintenance and repairs are such that were not performed when they should have been or 

were scheduled to be and which are put off or delayed for a future period. Maintenance and repairs are 

activities directed toward keeping fixed assets in an acceptable condition. Activities include preventive 

maintenance; replacement of parts, systems, or components; and other activities needed to preserve or 

maintain the asset. Maintenance and repairs, as distinguished from capital improvements, exclude 

activities directed towards expanding the capacity of an asset or otherwise upgrading it to serve needs 

different from, or significantly greater than, its current use. SFFAS 42, Deferred Maintenance and 

Repairs became effective October 1, 2014. Estimates for deferred maintenance and repairs are 

disclosed in required supplementary information. 

Reconciliation of Net Cost to Net Outlays

SFFAS 53, Budget and Accrual Reconciliation (BAR) became effective October 1, 2018. The BAR 

explains the relationship between the entity’s net outlays on a budgetary basis and the net cost of 

operations during the reporting period. 

Insurance Programs

The Federal Crop Insurance Program is considered a short-duration exchange transaction insurance 

program. The crop insurance policies insure against unexpected declines in yield and/or price due to 
78 Section II | Financial Information

natural causes. The insurance policies are structured as a contract between Approved Insurance 

Providers (AIPs) and producers, with the Federal Crop Insurance Corporation (FCIC) providing 

reinsurance to AIPs. Crop insurance policies automatically renew each year, unless producers cancel 

them by a published annual deadline. Under the reinsurance agreements, AIPs agree to deliver 

insurance products to eligible entities under certain terms and conditions. The administrative and 

operating subsidy compensates the AIPs for selling and servicing crop insurance policies, including the 

direct settling of claims. Producers pay a portion of premium and fees to participate in the insurance 

program benefit payments. FCIC and AIPs share in underwriting gains or losses. The underwriting risk 

for the crop insurance program is shared by FCIC and the AIPs. The AIPs generally retain 

approximately 80 to 85 percent of the premium, and the risk associated with the premium. FCIC 

provides AIPs stop-loss reinsurance for the risk associated with their retained premium. 

Classified Activities

Accounting standards require all reporting entities to disclose that accounting standards allow certain 

presentations and disclosures to be modified, if needed, to prevent the disclosure of classified 

information. 

Reclassifications

The Balance Sheet, Statement of Changes in Net Position and notes on Non-Entity Assets, 

Investments, Loans Receivable, Net and Loan Guarantee Liabilities, and Liabilities Not Covered by 

Budgetary Resources were reclassified to conform to Office of Management and Budget (OMB) 

Circular A‐136, Financial Reporting Requirements. The Stewardship PP&E note was reclassified to 

present stewardship land for research centers.

Note Disclosures Related to the Balance Sheet

NOTE 2: Non-Entity Assets

Non-entity assets include proceeds from the sale of timber payable to the U.S. Treasury, timber 

contract performance bonds, employer contributions and payroll taxes withheld for agencies serviced 

by the National Finance Center, rural housing escrow, interest, fines, and penalties. 

Item FY 2022 FY 2021

Intragovernmental: 

 Fund Balance with Treasury $ 379 $ 379 

 Accounts Receivable 323 529 

Total Intragovernmental 702 908 

Cash and Other Monetary Assets 55 51 

Accounts Receivable 408 267 

Total Non-Entity Assets 1,165 1,226 

Total Entity Assets 414,720 359,905 

Total Assets $ 415,885 $ 361,131 
USDA | 2022 Agency Financial Report 79

NOTE 3: Fund Balance with Treasury

Borrowing Authority Not Yet Converted to Fund Balance represents unobligated and obligated 

amounts recorded at year-end that will be funded by future borrowings. Non-Budgetary Fund Balance 

with Treasury includes special fund receipt accounts, and clearing and suspense account balances 

awaiting disposition or reclassification.

On September 30, 2022, CCC recorded non-expenditure transfers to outside agencies. Due to the 

timing of the transactions, the financing (executed borrowings from Treasury) for these transfers was 

not processed until the next business day, October 3, 2022, effective in FY 2023. As a result, CCC has 

recognized a liability (Due to the General Fund) related to the financing event that did not occur until 

FY 2023. This results in a discrepancy with balances reported to Treasury of $3,197 million as of 

September 30, 2022. 

Item FY 2022 FY 2021

Status of Fund Balance with Treasury

Unobligated Balance

Available $ 71,505 $ 83,777

Unavailable 95,097 42,751

Obligated Balance Not Yet Disbursed 107,017 110,799

Borrowing Authority Not Yet Converted to Fund Balance (47,175) (44,412)

Authority Granted Prior to Credit Reform for Rental Assistance Grants (15) (18)

Non-Budgetary Fund Balance with Treasury 57,652 44,713

Total $ 284,081 $ 237,610

NOTE 4: Cash and Other Monetary Assets

For FY 2022 and FY 2021, cash and other monetary assets consists of Federal crop insurance escrow 

of $398 million and $217 million, deposits in transit of $39 million and $30 million, and single‐family 

housing escrow of $55 million and $51 million, respectively.

Item FY 2022 FY 2021

Cash $ 492 $ 298
80 Section II | Financial Information

NOTE 5: Investments

FY 2022

Cost/ 

Acquisition 

Value

Amortization 

Method

Amortized 

(Premium) 

Discount

Interest 

Receivable

Net 

Investments Market Value

Intragovernmental Securities and Investments:

Non-marketable - Market-based $ 266 Straight Line $ 1 $ 1 $ 268 $ 255 

Total Intragovernmental Securities and Investments 266 1 1 268 255 

Fair Value Measurement of Non-Intragovernmental Investments Total

Equity Securities 3 

Total Fair Value Measurement of Non-Intragovernmental Investments $ 3 

FY 2021

Cost/ 

Acquisition 

Value

Amortization 

Method

Amortized 

(Premium) 

Discount

Interest 

Receivable

Net 

Investments Market Value

Intragovernmental Securities and Investments:

Non-marketable - Market-based $ 254 Straight Line $ 1 $ 1 $ 256 $ 256 

Total Intragovernmental Securities and Investments 254 1 1 256 256 

Fair Value Measurement of Non-Intragovernmental Investments Total

Equity Securities 3 

Total Fair Value Measurement of Non-Intragovernmental Investments $ 3 
USDA | 2022 Agency Financial Report 81

Fair value measurement of non-intragovernmental investments include equity securities held by the 

Alternative Agricultural Research and Commercialization Corporation (AARCC). These securities 

represent shares the AARCC program purchased as part of the original investment into non-publicly 

traded companies. The program along with the investments is currently going through a review process 

with regards to the viability of the remaining investments and their value. 

The U. S. Treasury does not set aside assets to pay future expenditures associated with funds from 

dedicated collections; instead the cash generated from funds from dedicated Treasury securities are 

issued to the funds from dedicated collections as evidence of the dedicated receipts; Treasury securities 

held by the funds for dedicated collections are an asset of the fund(s) and a liability of the U. S. Treasury, 

and will be eliminated by consolidation in the U. S. Government-wide financial statements; and when the 

funds from dedicated collections redeems their Treasury securities to make expenditures, the U. S. 

Treasury will finance those expenditures in the same manner that it finances all other expenditures.

NOTE 6: Accounts Receivable, Net

FY 2022

Gross Uncollectible Accounts Net

Intragovernmental $ 495 $ — $ 495

Other than Intragovernmental 6,770 (64) 6,706

Total $ 7,265 $ (64) $ 7,201

FY 2021

Gross Uncollectible Accounts Net

Intragovernmental $ 320 $ — $ 320

Other than Intragovernmental 5,409 (56) 5,353

Total $ 5,729 $ (56) $ 5,673

NOTE 7: Loans Receivable, Net and Loan Guarantee Liabilities

Direct loan obligations and loan guarantee commitments made after fiscal year 1991, and the resulting 

direct loans or loan guarantees, are governed by the Federal Credit Reform Act of 1990, as amended. 

Direct loan obligations or loan guarantee commitments made pre-1992 are reported at either net 

present-value or net realizable value. 

The net present value of Direct Loan and Loan Guarantees, Net is not necessarily representative of the 

proceeds that might be expected if these loans were sold on the open market. 

The Department offers direct and guaranteed loans through credit programs in the Farm Production 

and Conservation (FPAC) mission area through the Farm Service Agency (FSA) and the CCC, and in 

the Rural Development (RD) mission area. 
82 Section II | Financial Information

Farm Production and Conservation Mission Area

The FPAC mission area helps keep America’s farmers and ranchers in business as they face the 

uncertainties of weather and markets. FPAC delivers commodity, credit, conservation, disaster, and 

emergency assistance programs that help strengthen and stabilize the agricultural economy. FPAC 

contributes to the vitality of the farm sector with programs that encourage the expansion of export 

markets for U.S. agriculture. 

FSA offers direct and guaranteed loans to farmers who are temporarily unable to obtain private, 

commercial credit, and nonprofit entities that are engaged in the improvement of the nation’s 

agricultural community. Often, FSA borrowers are beginning farmers who cannot qualify for 

conventional loans due to insufficient financial resources. Additionally, the agency helps established 

farmers who have suffered financial setbacks from natural disasters or have limited resources to 

maintain profitable farming operations. FSA officials also provide borrowers with supervision and 

credit counseling. 

FSA’s mission is to provide supervised credit. FSA works with each borrower to identify specific 

strengths and weaknesses in farm production and management, and provides alternatives to address 

weaknesses. FSA is able to provide certain loan servicing options to assist borrowers whose accounts 

are distressed or delinquent. These options include reamortization, restructuring, loan deferral, 

lowering interest rates, acceptance of easements, and debt write-downs. The eventual goal of FSA’s 

farm credit programs is to graduate its borrowers to commercial credit.

CCC’s foreign programs provide economic stimulus to both the U.S. and foreign markets, while giving 

humanitarian assistance to the most disadvantaged people throughout the world. CCC offers both 

credit guarantee and direct credit programs for buyers of U.S. exports, suppliers, and sovereign 

countries in need of food assistance. 

CCC permits debtor nations to reschedule debt under the aegis of the Paris Club. The Paris Club is an 

informal group of official creditors whose role is to facilitate debt treatments based on an 

internationally recognized set of rules and principles, facilitated by the senior officials of the French 

Treasury. Its sole purpose is to assess, on a case-by-case basis, liquidity problems faced by 

economically disadvantaged countries. The general premise of Paris Club is to provide disadvantaged 

nations short-term liquidity relief to enable them to reestablish their credit worthiness. The U.S. 

Departments of State and Treasury lead the U.S. Delegation and negotiations for all U.S. Agencies. 

CCC also provides loans for farm and sugar storage facilities through the Farm Storage Facility Loan 

Program (FSFL). FSFL provides low interest financing for producers to build or upgrade farm storage 

and handling facilities. FSFL program regulations were amended during FY 2017 to add eligibility for 

portable storage structures, portable equipment, and storage and handling trucks, and to reduce the 

down payment and documentation requirements for a “microloan” category of FSFLs up to $50,000. 
USDA | 2022 Agency Financial Report 83

Exhibit 19: Farm Production and Conservation List of Direct Loan and Loan Guarantee Programs

Farm Service Agency Commodity Credit Corporation

Direct Farm Ownership

Direct Farm Operating

Direct Emergency Loans

Direct Indian Land Acquisition

Direct Boll Weevil Eradication

Direct Seed Loans to Producers

Direct Conservation

Guaranteed Farm Operating Subsidized/Unsubsidized

Guaranteed Farm Ownership Unsubsidized

Guaranteed Conservation

American Recovery and Reinvestment Fund 

General Sales Manager Export Credit Guarantee 

Program

Facility Program Guarantee

Public Law (P.L.) 480 Title 1 Program

Direct Farm Storage Facility

Direct Sugar Storage Facilities

Rural Development Mission Area

RD offers both direct and guaranteed loans administered through three agencies with unique missions 

to bring prosperity and opportunity to rural areas. Each year, RD programs create or preserve tens of 

thousands of rural jobs and provide or improve the quality of rural housing, business, and utilities. 

To leverage the impact of its programs, RD is working with state, local, and Indian tribal governments, 

as well as private and nonprofit organizations and user-owned cooperatives. RD is able to provide 

certain loan servicing options to borrowers whose accounts are distressed or delinquent. These options 

include reamortization, restructuring, loan deferral, lowering interest rate, acceptance of easements, 

and debt write-downs. The choice of servicing options depends on the loan program and the 

individual borrower. 

Rural Housing programs provide affordable, safe, and sanitary housing and essential community 

facilities to rural communities. They also help finance new or improved housing for moderate, low, and 

very low-income families each year. Other programs help rural communities to finance, construct, 

enlarge or improve fire stations, libraries, hospitals and medical clinics, industrial parks, and other 

community facilities. 

Rural Business programs promote a dynamic business environment in rural America. These programs 

work in partnership with the private sector and community-based organizations to provide financial 

assistance and business planning. They also provide technical assistance to rural businesses and 

cooperatives, conduct research into rural economic issues, and provide cooperative educational 

materials to the public. 

Rural Utilities programs help to improve the quality of life in rural America through a variety of loan 

programs for electric energy, telecommunications, and water and environmental projects. These 

programs leverage scarce Federal funds with private capital for investing in rural infrastructure, 

technology, and development of water resources.
84 Section II | Financial Information

Exhibit 20: Rural Development List of Direct Loan and Loan Guarantee Programs

Rural Housing Program Rural Business Program Rural Utilities Program

Single Family Housing Direct 

Loans (including Self-Help Loans)

Single Family Housing Loan 

Guarantees

Single Family Housing Repair 

Loans

Rural Rental Housing Direct Loan

Rural Rental Housing Loan 

Guarantees

Farm Labor Housing Loans

Community Facilities Direct 

Loans and Loan Guarantees

Business and Industry Loan 

Guarantees

Intermediary Relending Program 

Loans

Rural Microentrepreneur Assistance 

Program 

Rural Economic Development Loans

Rural Energy for America Program 

Loan Guarantees

Biorefinery Renewable Chemical, 

and Bio-based Product

Manufacturing Assistance Program 

Loan Guarantees 

Water and Environmental Direct 

Loans, Loan Guarantees

Rural Broadband Direct Loans 

Electric and Telecommunications 

Direct Loans and Loan 

Guarantees

Loan Modifications

Multi-Family Housing direct loan modifications related to the revitalization program, which began in 

FY 2006, continued through FY 2022. In this program, Rural Development provides restructured loans 

and grants to development owners to revitalize multi-family housing development projects in order to 

extend the affordable use without displacing tenants due to the increased rent. 

The Debt Reduction Fund is used to account for CCC’s “modified debt.” Debt is considered to be 

modified if the original debt has been reduced or the interest rate of the agreement changed. 

In contrast, when debt is “rescheduled,” only the date of payment is changed. Rescheduled debt is 

carried in the original fund until paid. With one exception, all outstanding CCC modified debt is 

carried in the Debt Reduction Fund and is governed by the Federal Credit Reform Act of 1990, as 

amended. CCC modified debt for several P.L. 480 loans in the direct financing and liquidating 

accounts during FY 2022. 

Foreclosed Property

As of September 30, 2022 and 2021, foreclosed property consisted of 307 and 1,095 rural single family 

housing dwellings, with an average holding period of 17 months for FY 2022 and 16 months for 

FY 2021, respectively. As of September 30, 2022 and 2021, FSA-Farm Loan Program properties 

consist primarily of 125 and 127 farms, respectively. The average holding period for these properties in 

inventory for FY 2022 and FY 2021 was 89 and 77 months, respectively. The approximate number of 

borrowers for which foreclosure proceedings were in process at the end of FY 2022 and FY 2021 was 

10,143 and 11,792, respectively. Certain properties can be leased to eligible individuals. 
USDA | 2022 Agency Financial Report 85

Other Information

Non-performing loans are defined as receivables that are in arrears by 90 or more days or are on 

rescheduling agreements until such time two consecutive payments have been made following the 

rescheduling. When RD, FSA and CCC calculate loan interest income, however, the recognition of 

revenue is deferred. Late interest is accrued on arrears. 

Approximately $12,949 million and $13,548 million of Rural Housing borrowers’ unpaid loan 

principal as of September 30, 2022 and 2021 were receiving interest credit. If those loans receiving 

interest credit had accrued interest at the full‐unreduced rate, interest income would have been 

approximately $592 million and $604 million higher for FY 2022 and FY 2021, respectively. 

At the end of FY 2022 and FY 2021, the RD portfolio contained approximately 50,050 and 

53,656 restructured loans with an outstanding unpaid principal balance of $3,331 million and 

$3,407 million, respectively. At the end of FY 2022 and FY 2021, the farm loan portfolio contained 

approximately 12,508 and 12,888 restructured loans with an outstanding unpaid principal balance of 

$1,086 million and $1,073 million, respectively. Direct credit and credit guarantee principal 

receivables in the food aid and export programs under rescheduling agreements as of September 

30, 2022 and 2021, were $923 million and $829 million, respectively.

Beginning in FY 2012, advance payments surpassed the loans receivable balance in the Rural Utilities 

Liquidating Fund. This was due to an increased volume in advance payments and a normal reduction to 

the Liquidating Portfolio. The Omnibus Budget Act of 1987, section 313, authorized the accumulation 

of Cushion of Credit (CoC) in the Revolving Fund. Borrowers were able to make advance payments up 

to their liquidating and financing total Rural Utilities Service debt. The enactment of the 2018 

Agriculture Improvement Act had provided the borrowers the opportunity to prepay outstanding loans 

using the CoC balances without penalty through September 30, 2020. As of September 30, 2020 the 

CoC account is no longer accepting borrower deposits and the remaining balances are used to repay 

outstanding loan balances. To accurately represent the value of Electric and Telecommunication assets, 

RD reports the CoC amounts as a separate line item in Tables 1 and 2. 
86 Section II | Financial Information

Table 1: Direct Loans Obligated Prior to FY 1992

FY 2022 Direct Loan Programs

Loans 

Receivable, 

Gross

Interest 

Receivable

Foreclosed 

Property

Present Value 

Allowance

Direct Loans, 

Net

Farm $ 114 $ 87 $ 7 $ (84) $ 124

Food Aid 208 4 — (73) 139

Housing 5,078 784 1 (712) 5,151

Community Facility 5 — — — 5

Electric 1,643 2 — (1,427) 218

Telecommunications 20 — — — 20

Water and Environmental 137 2 — — 139

Intermediary Relending 1 — — — 1

Cushion of Credit (54) — — — (54)

Total $ 7,152 $ 879 $ 8 $ (2,296) $ 5,743

FY 2021 Direct Loan Programs

Loans 

Receivable, 

Gross

Interest 

Receivable

Foreclosed 

Property

Present Value 

Allowance

Direct Loans, 

Net

Farm $ 134 $ 96 $ 7 $ (98) $ 139

Food Aid 254 5 — (53) 206

Housing 5,332 695 8 (627) 5,408

Community Facility 6 — — — 6

Electric 1,805 2 — (1,427) 380

Telecommunications 28 — — — 28

Water and Environmental 167 2 — — 169

Intermediary Relending 1 — — — 1

Cushion of Credit (81) — — — (81)

Total $ 7,646 $ 800 $ 15 $ (2,205) $ 6,256
USDA | 2022 Agency Financial Report 87

Table 2: Direct Loans Obligated After FY 1991

FY 2022 Direct Loan Programs

Loans 

Receivable, 

Gross

Interest and 

Fees Receivable

Foreclosed 

Property

Allowance for 

Subsidy Cost 

(Present Value)

Direct Loans, 

Net

Farm $ 16,124 $ 363 $ 9 $ 180 $ 16,676 

Food Aid 369 9 — (88) 290 

Housing 17,156 444 23 (1,183) 16,440 

Community Facility 11,550 110 — (228) 11,432 

Electric 52,251 31 — (737) 51,545 

Telecommunications 2,418 2 — (38) 2,382 

Water and Environmental 13,090 83 — 303 13,476 

Intermediary Relending 302 2 — (58) 246 

Business and Industry 42 — — (5) 37 

Economic Development 177 — — (12) 165 

Cushion of Credit (491) — — — (491)

Total $ 112,988 $ 1,044 $ 32 $ (1,866) $ 112,198 

FY 2021 Direct Loan Programs

Loans 

Receivable, 

Gross

Interest and 

Fees Receivable

Foreclosed 

Property

Allowance for 

Subsidy Cost 

(Present Value)

Direct Loans, 

Net

Farm $ 15,155 $ 330 $ 10 $ (175) $ 15,320 

Food Aid 420 8 — (74) 354 

Housing 17,509 433 63 (1,755) 16,250 

Community Facility 11,151 106 — (188) 11,069 

Electric 49,235 30 — (1,171) 48,094 

Telecommunications 2,567 2 — 39 2,608 

Water and Environmental 12,897 87 — 429 13,413 

Intermediary Relending 321 2 — (63) 260 

Business and Industry 44 — — (6) 38 

Economic Development 202 — — (17) 185 

Cushion of Credit (1,187) — — — (1,187)

Total $ 108,314 $ 998 $ 73 $ (2,981) $ 106,404 

Table 3: Total Amount of Direct Loans Disbursed (Post-1991)

Direct Loan Programs FY 2022 FY 2021

Farm $ 3,036 $ 3,399 

Housing 1,125 1,086 

Community Facility 946 1,259 

Electric 5,749 4,082 

Telecommunications 181 206 

Water and Environmental 1,005 1,022 

Intermediary Relending 10 12 

Business and Industry 2 2 

Economic Development 22 40 

Total $ 12,076 $ 11,108 
88 Section II | Financial Information

Table 4: Subsidy Expense for Direct Loan Programs by Component

FY 2022 Direct Loan Programs

Interest 

Differential Defaults

Fees and 

Other 

Collections Other

Subtotal 

Subsidy

Total 

Modifications

Interest Rate 

Reestimates

Technical 

Reestimates

Total 

Reestimates

Total Subsidy 

Expense

Farm $ (23) $ 38 $ (1) $ 2 $ 16 $ — $ 481 $ (687) $ (206) $ (190)

Export — — — — — — 206 (184) 22 22 

Food Aid — — — — — — — 15 15 15 

Housing 3 48 — (4) 47 — (135) (380) (515) (468)

Community Facility (107) 36 — 15 (56) — (99) 165 66 10 

Electric (203) 16 (19) (22) (228) — (1,413) 2,295 882 654 

Telecommunications — 18 — (1) 17 3 49 6 55 75 

Water and Environmental 47 1 — (33) 15 — 53 132 185 200 

Intermediary Relending 2 — — — 2 — — — — 2 

Business and Industry — — — — — — — (1) (1) (1)

Economic Development 2 — — — 2 — (4) — (4) (2)

Total $ (279) $ 157 $ (20) $ (43) $ (185) $ 3 $ (862) $ 1,361 $ 499 $ 317 

FY 2021 Direct Loan Programs

Interest 

Differential Defaults

Fees and 

Other 

Collections Other

Subtotal 

Subsidy

Total 

Modifications

Interest Rate 

Reestimates

Technical 

Reestimates

Total 

Reestimates

Total Subsidy 

Expense

Farm $ (28) $ 48 $ (1) $ 4 $ 23 $ (28) $ (608) $ 327 $ (281) $ (286)

Export — — — — — — — (6) (6) (6)

Food Aid — — — — — — — 9 9 9

Housing 32 47 — 3 82 3 (92) (110) (202) (117)

Community Facility (138) 45 — 14 (79) — 168 (44) 124 45

Electric (147) 6 (18) (17) (176) — (348) (278) (626) (802)

Telecommunications 1 9 — (1) 9 — (3) (32) (35) (26)

Water and Environmental 53 1 — (37) 17 — 27 198 225 242

Intermediary Relending 3 — — — 3 — (2) — (2) 1

Economic Development 6 — — — 6 — (1) (1) (2) 4

Total $ (218) $ 156 $ (19) $ (34) $ (115) $ (25) $ (859) $ 63 $ (796) $ (936)
USDA | 2022 Agency Financial Report 89

The FY 2022 reestimate process resulted in a $499 million increase in the post-1991 estimated cost of 

the direct loan portfolio, primarily comprised of the following programs: 

In the farm category, Agriculture Credit Insurance Fund (ACIF) comprised more than 80 percent of the 

total farm category, with essentially 100 percent of the ACIF decrease resulting from the farm 

ownership and operating categories. Farm Storage Facility loans comprised the remaining 20 percent of 

the total farm category. The Direct Operating program experienced a total FY 2022 reestimate of 

$-56.5 million across all cohorts. The breakdown for the operating program is as follows: impact of the 

FY 2022 actuals and Single Effective Rates (SER) changes ($-48.9 million), impact of updated 

macroeconomic variables ($10.0 million), and impact of changes in assumed and actual borrower 

interest rates ($17.7 million). The Direct Ownership program experienced a total FY 2022 reestimate of 

$-123.4 million across all cohorts. The breakdown for the ownership program is as follows: impact of 

the FY 2022 actuals and SER changes ($-109.4 million), impact of updated macroeconomic variables 

($-7.8 million), and impact of changes in assumed and actual borrower interest rates ($-6.2 million).

The Direct Single-Family Housing program had a downward reestimate of $-515 million. The key 

drivers of the downward impact were the updated percentages of foreclosure recoveries applied to fees, 

full payoff prepayments, subsidy interest, recaptures, Real Estate Owned (REO) recoveries, lag on 

REO and lag on foreclosures from FY 2021. The forecasted recapture recoveries and prepayments 

increased, which resulted in a downward impact on the total reestimate amount. Additionally, the 

decrease in the percentage of foreclosures applied to fees, an increase in the lag on foreclosures and lag 

on REO acquisitions further resulted in an overall downward reestimate. 

The Direct Electric Program had an overall upward reestimate of $882 million which is comprised of a 

$1,091 million upward reestimate in the Federal Financing Bank (FFB) program, a $-219 million in the 

FFB Underwriter program, a $14 million upward reestimate in the Electric Municipal program and a 

$-5 million downward reestimate in the FFB Electric Modification program. One of the main drivers of 

the upward reestimate in the Direct Electric program was the decrease in undiscounted prepayments, 

and an increase in cash outflows and losses from last year. The main component of the downward 

reestimate in the FFB Underwriters program was the increase in undiscounted prepayments, due to the 

updated SER which primarily decreased. As the SER decreases, the cost of borrowing for the agency 

decreases causing a downward reestimate as the net present value of cash flows increases due to the 

lower discount rate. Another contributing factor to the downward reestimate in the FFB Underwriters 

program was an increase in forecasted variable interest rates from OMB Presidential Economic 

Assumptions, which increased interest revenue. 

The Direct Water and Environmental program had an overall upward reestimate of $185 million. 

The upward reestimate was primarily attributed to the Miscellaneous Inflows curves decreasing which 

are based on actual data and are used to project future cashflows from miscellaneous inflows. Another 

contributing factor to the overall upward reestimate was the decrease in interest rates that were lower 

than the rates the government uses when they borrow from Treasury. A downward reestimate was 

calculated for years 2015 – 2017, this was attributed to updated SER being calculated for large 
90 Section II | Financial Information

programs. As the SER decreases, the cost of borrowing for the agency decreases as well, causing a 

downward reestimate as the net present value of cash flows increases due to the lower discount rate. 

Table 5: Subsidy Rates for Direct Loans by Program and Component

FY 2022 Direct Loan Programs

Interest 

Differential Defaults

Fees and Other 

Collections Other Total

Farm Ownership (13.68) 0.53 — 0.88 (12.27)

Farm Operating (2.44) 4.70 — 0.19 2.45 

Emergency Disaster (10.66) 10.13 — 1.24 0.71 

Indian Tribe Land Acquisition (56.22) — — — (56.22)

Boll Weevil Eradication (0.33) — — (0.16) (0.49)

Indian Highly Fractionated Land 8.19 0.74 — (0.79) 8.14 

Heirs Property Relending Program 8.19 0.74 — (0.79) 8.14 

Farm Storage Facility Loans (1.13) — (0.27) (0.05) (1.45)

Sugar Storage Facility Loans (4.14) — — 0.03 (4.11)

Multifamily Housing Revitalization Seconds 34.75 0.75 — 0.01 35.51 

Multifamily Revitalization Zero 33.79 0.57 — (0.26) 34.10 

Community Facility Loans (10.61) 4.47 — 0.33 (5.81)

Section 502 Single Family Housing (2.35) 4.68 — (0.47) 1.86 

Section 515 Multifamily Housing 9.18 1.35 — (1.59) 8.94 

Section 504 Housing Repair 3.58 (0.04) — (1.81) 1.73 

Section 514 Farm Labor Housing 10.16 0.23 — (0.28) 10.11 

Section 524 Site Development (2.82) 6.25 — 0.68 4.11 

Section 523 Self-Help Housing (4.05) 5.06 — 0.09 1.10 

Single Family Housing Credit Sales (9.32) 5.07 — 1.47 (2.78)

Rural Microenterprise Direct Loans (6.40) 2.30 — — (4.10)

Intermediary Relending Program 7.26 1.73 — (0.92) 8.07 

Rural Economic Development Loans 4.92 0.01 — (0.25) 4.68 

Water and Waste Disposal Loans 2.29 0.17 — (7.62) (5.16)

FFB Electric Loans (5.98) 0.01 — (1.23) (7.20)

Treasury Telecommunications Loans (0.12) 0.70 — (0.28) 0.30 

FFB Telecommunications Loans (1.73) 0.17 — (2.48) (4.04)

FFB Guaranteed Underwriting — 1.33 (1.97) — (0.64)

Rural Energy Savings Program 4.86 1.08 — (0.42) 5.52 

Broadband Treasury Rate Loans (0.13) 15.68 — (0.62) 14.93 

ReConnect Direct Loans (4.32) 26.14 — 0.20 22.02 

ReConnect Grant Assisted Loans — 26.14 — (0.30) 25.84 

The subsidy rates disclosed pertain only to the current year's cohorts. These rates cannot be applied to 

the direct loans disbursed during the current reporting year to yield the subsidy expense. The subsidy 

expense for new loans reported in the current year could result from disbursements of loans from both 

current year cohorts and prior year(s) cohorts. The subsidy expense reported in the current year also 

includes modifications and reestimates.
USDA | 2022 Agency Financial Report 91

Table 6: Schedule for Reconciling Subsidy Cost Allowance Balances (Post-1991) Direct Loans

Item FY 2022 FY 2021

Beginning Balance of the Subsidy Cost Allowance $ 3,739 $ 4,391 

Add: Total Subsidy Expense for Direct Loans Disbursed During the Year As Shown in Table 4 (185) (115)

Adjustments

Loan Modifications 3 (25)

Fees Received 84 76 

Loans Written Off (214) (171)

Subsidy Allowance Amortization (19) (284)

Other (1,066) 663 

Ending Balance of the Subsidy Cost Allowance Before Reestimates 2,342 4,535 

Add or Subtract Total Subsidy Reestimates As Shown in Table 4 499 (796)

Ending Balance of the Subsidy Cost Allowance $ 2,841 $ 3,739 

Table 7: Defaulted Guaranteed Loans from Post 1991 Guarantees

FY 2022 Loan Guarantee Programs

Defaulted Guaranteed 

Loans Receivable, Gross

Interest and Fees 

Receivable Foreclosed Property

Allowance for Subsidy Cost 

(Present Value)

Value of Assets Related to 

Defaulted Guaranteed 

Loans Receivable, Net

Farm $ 280 $ 106 $ — $ (382) $ 4 

Export 347 11 — (223) 135 

Housing 348 — — (309) 39 

Community Facility 5 — — — 5 

Business and Industry 192 — — (62) 130 

Total $ 1,172 $ 117 $ — $ (976) $ 313 

FY 2021 Loan Guarantee Programs 

Defaulted Guaranteed 

Loans Receivable, Gross

Interest and Fees 

Receivable Foreclosed Property

Allowance for Subsidy Cost 

(Present Value)

Value of Assets Related to 

Defaulted Guaranteed 

Loans Receivable, Net

Farm $ 253 $ 90 $ — $ (323) $ 20 

Export 396 18 — (246) 168 

Housing 174 — — (137) 37 

Community Facility 8 — — — 8 

Business and Industry 217 — — (53) 164 

Total $ 1,048 $ 108 $ — $ (759) $ 397 
92 Section II | Financial Information

Table 8: Guaranteed Loans Outstanding

FY 2022 Loan Guarantee Programs

Pre-1992 Outstanding 

Principal, Face Value

Post-1991 Outstanding 

Principal, Face Value

Total Outstanding 

Principal, Face Value

Pre-1992 Outstanding 

Principal, Guaranteed

Post-1991 Outstanding 

Principal, Guaranteed

Total Outstanding 

Principal, Guaranteed

Farm $ — $ 18,879 $ 18,879 $ — $ 17,140 $ 17,140

Export — 3,210 3,210 — 3,136 3,136

Housing — 116,252 116,252 — 105,061 105,061

Community Facility — 1,193 1,193 — 1,055 1,055

Electric — 131 131 — 131 131

Water and Environmental — 111 111 — 98 98

Business and Industry — 9,948 9,948 — 7,506 7,506

Total $ — $ 149,724 $ 149,724 $ — $ 134,127 $ 134,127

FY 2021 Loan Guarantee Programs

Pre-1992 Outstanding 

Principal, Face Value

Post-1991 Outstanding 

Principal, Face Value

Total Outstanding 

Principal, Face Value

Pre-1992 Outstanding 

Principal, Guaranteed

Post-1991 Outstanding 

Principal, Guaranteed

Total Outstanding 

Principal, Guaranteed

Farm $ 1 $ 18,957 $ 18,958 $ 1 $ 17,169 $ 17,170

Export — 1,981 1,981 — 1,938 1,938

Housing — 123,431 123,431 — 111,052 111,052

Community Facility — 1,173 1,173 — 1,039 1,039

Electric — 139 139 — 139 139

Water and Environmental — 108 108 — 95 95

Business and Industry — 9,276 9,276 — 6,876 6,876

Total $ 1 $ 155,065 $ 155,066 $ 1 $ 138,308 $ 138,309

Table 9: New Guaranteed Loans Disbursed

Item FY 2022 FY 2021

Loan Guarantee Programs

Principal, Face Value 

Disbursed

Principal, Guaranteed 

Disbursed

Principal, Face Value 

Disbursed

Principal, Guaranteed 

Disbursed

Farm $ 3,256 $ 2,956 $ 3,577 $ 3,239

Export 3,292 3,217 2,004 1,960

Housing 14,060 12,654 23,875 21,488

Community Facility 174 154 105 93

Water and Environmental 12 10 20 18

Business and Industry 2,119 1,625 2,531 1,931

Total $ 22,913 $ 20,616 $ 32,112 $ 28,729
USDA | 2022 Agency Financial Report 93

Table 10: Liability for Loan Guarantees (Present Value)

FY 2022 Loan Guarantee Programs

Liabilities for Losses on 

Pre- 1992 Guarantees Present Value

Liabilities for Loan Guarantees on 

Post- 1991 Guarantees Present Value Total Liabilities for Loan Guarantees

Farm $ — $ 141 $ 141

Export — 14 14

Housing — (2,538) (2,538)

Community Facility — 24 24

Water and Environmental — 1 1 

Business and Industry — 419 419

Total $ — $ (1,939) $ (1,939)

FY 2021 Loan Guarantee Programs

Liabilities for Losses on Pre- 1992 

Guarantees Present Value

Liabilities for Loan Guarantees on Post1991 Guarantees Present Value Total Liabilities for Loan Guarantees

Farm $ — $ 177 $ 177

Export — 3 3 

Housing — (1,144) (1,144)

Community Facility — 30 30

Water and Environmental — 1 1 

Business and Industry — 332 332

Total $ — $ (601) $ (601)

Table 11: Subsidy Expense for Loan Guarantees by Program and Component

FY 2022 Loan Guarantee Programs

Interest 

Supplement Defaults

Fees and Other 

Collections Other Subtotal

Total 

Modifications

Interest Rate 

Reestimates

Technical 

Reestimates

Total 

Reestimates

Total Subsidy 

Expense

Farm $ — $ 15 $ (9) $ — $ 6 $ — $ (5) $ (33) $ (38) $ (32)

Export — — 15 (3) 12 — — (1) (1) 11

Housing — 482 (677) — (195) — (120) (1,291) (1,411) (1,606)

Community Facility — 7 (5) — 2 — — (6) (6) (4)

Business and Industry — 124 (85) — 39 — (8) 53 45 84

Total $ — $ 628 $ (761) $ (3) $ (136) $ — $ (133) $ (1,278) $ (1,411) $ (1,547)

FY 2021 Loan Guarantee Programs

Interest 

Supplement Defaults

Fees and Other 

Collections Other Subtotal

Total 

Modifications

Interest Rate 

Reestimates

Technical 

Reestimates

Total 

Reestimates

Total Subsidy 

Expense

Farm $ — $ 19 $ (10) $ — $ 9 $ (13) $ 5 $ (27) $ (22) $ (26)

Export — — 9 (5) 4 — — (3) (3) 1 

Housing — 862 (1,033) — (171) — 14 (2,124) (2,110) (2,281)

Community Facility — 4 (3) — 1 — — (12) (12) (11)

Business and Industry — 184 (105) — 79 — — (186) (186) (107)

Total $ — $ 1,069 $ (1,142) $ (5) $ (78) $ (13) $ 19 $ (2,352) $ (2,333) $ (2,424)
94 Section II | Financial Information

The FY 2022 reestimate process resulted in a $1,411 million decrease in the post-1991 estimated cost 

of the guaranteed loan portfolio, primarily comprised of the following program: 

The Guaranteed Single-Family Housing Section 502 Program had an overall downward reestimate of 

$-1,411 million. The total downward reestimate is the result of a downward reestimate of 

$-1,252 million in the Blended component of the program and a downward reestimate of $-148 million 

in the Purchase component. The majority of the total reestimate is explained by the Blended 

component’s change, which is attributed to the downward reestimates for cohorts 2018 through 2021. 

The large downward reestimate for these years is attributed to a decrease in forecasted default claims. 

These changes were driven by the updated borrower source data which created an improved 

macroeconomic outlook. 

Table 12: Subsidy Rates for Loan Guarantees by Program and Component

FY 2022 Guaranteed Loan Programs

Interest 

Supplements Defaults

Fees and 

Other 

Collections Other Total

Food Processing Supply Chain Loan Guarantees — 7.30 — — 7.30 

Farm Ownership--Unsubsidized — 0.80 (1.18) — (0.38)

Farm Operating--Unsubsidized — 1.95 (1.17) — 0.78 

Conservation--Guaranteed — 0.65 (1.16) — (0.51)

GSM 102 — 0.23 (0.48) — (0.25)

Export Guarantee Program--Facilities — 1.29 (3.78) — (2.49)

Community Facility Loan Guarantees — 3.80 (4.09) — (0.29)

Guaranteed 538 Multifamily Housing — 2.19 (5.27) — (3.08)

Guaranteed 502 Single Family Housing — 3.41 (4.82) — (1.41)

Business and Industry Loan Guarantees — 6.49 (4.48) — 2.01 

Renewable Energy Loan Guarantees — 3.35 (2.51) — 0.84 

Section 9003 Loan Guarantees — 37.35 (4.56) 0.18 32.97 

Water and Waste Disposal Loan Guarantees — 0.97 (0.88) — 0.09 

The subsidy rates disclosed pertain only to the current year's cohorts. These rates cannot be applied to 

the guarantees of loans disbursed during the current reporting year to yield the subsidy expense. 

The subsidy expense for new loan guarantees reported in the current year could result from 

disbursements of loans from both current year cohorts and prior year(s) cohorts. The subsidy expense 

reported in the current year also includes modifications and reestimates.
USDA | 2022 Agency Financial Report 95

Table 13: Schedule for Reconciling Loan Guarantee Liability Balances 

(Post -1991 Loan Guarantees)

Item FY 2022 FY 2021

Beginning Balance of the Loan Guarantee Liabilities $ (601) $ 1,329 

Less Claim Payments to Lenders 130 160 

Add Fees Received 658 776 

Less Interest Supplements Paid 8 8 

Add Foreclosed Property and Loans Acquired 61 30 

Add Subsidy Expense 59 99 

Less Negative Subsidy Payments 203 184 

Add Upward Reestimate 44 15 

Less Downward Reestimates 1,455 2,348 

Loan Guarantee Modifications — (13)

Other (364) (137)

Ending Balance of the Loan Guarantee Liabilities $ (1,939) $ (601)

Table 14: Administrative Expenses

Item FY 2022 FY 2021

Direct Loan Programs $ 521 $ 495 

Guaranteed Loan Programs 449 465 

Total $ 970 $ 960 

Table 15: Loans Receivable

Item FY 2022

Beginning Balance of Loans Receivable, Net $ 113,057 

Add Loan Disbursements 13,161 

Less Principal and Interest Payments Received 8,523 

Less Claim Payments Received — 

Add Interest Accruals 19 

Less Fees Received 2 

Add Foreclosed Property Acquired 24 

Less Rent Received — 

Less Sale of Foreclosed Property 54 

Less Loans Written Off 240 

Less Interest Revenue on Uninvested Funds — 

Add Interest Expense on Entity Borrowings — 

Add Subsidy Expense (109)

Less Negative Subsidy Payments (496)

Add Upward Reestimate (1,276)

Less Downward Reestimates (1,903)

Less Subsidy Allowance 306 

Loan Modifications 1 

Allowance for Loan and Interest Loss Adjustments 100 

Other Non-Cash Reconciling Items 3 

Ending Balance of Loans Receivable, Net $ 118,254 
96 Section II | Financial Information

NOTE 8: Inventory and Related Property, Net

Commodity inventory is restricted for the purpose of alleviating distress caused by natural disasters, providing emergency food assistance in 

developing countries, and providing price support and stabilization. 

Commodities: Unit of Measure FY 2022 Beginning Inventory Acquisitions Collateral Acquired Donations Others FY 2022 Ending Inventory

Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value

Corn Meal Pounds — $ — 108 $ 32 — $ — (108) $ (32) — $ — — $ — 

Blended Foods Pounds 4 4 83 55 — — (86) (58) — — 1 1 

Dry Edible Beans Cwt. — — — — — — — — — — — — 

Dry Whole Peas Cwt. — 5 2 91 — — (2) (91) — — — 5 

Grain Sorghum Bushels — — 12 102 — — (11) (94) — 2 1 10

Lentils Dry Cwt. — 3 — 17 — — — (19) — — — 1 

Nonfat Dry Milk Pounds — — — — — — — — — — — — 

Rice Products Cwt., Pounds — 2 1 31 — — (1) (33) — — — — 

Meat Pounds — — — — — — — — — — — — 

Vegetable Oil Pounds 8 8 141 141 — — (142) (141) — (1) 7 7 

Wheat Products Bushels, Pounds — — 20 338 — — (20) (338) — — — — 

Peanuts Pounds — — — — 10 2 (4) (1) (6) (1) — — 

Soybeans Bushels, Pounds — — 123 43 — — (123) (43) — — — — 

Fruit and Nut Products Pounds — — — — — — — — — — — — 

Cotton Bales — — — — — — — — — — — — 

Other Various — 1 — 14 — — — (11) — — — 4 

Total $ 23 $ 864 $ 2 $ (861) $ — $ 28

Commodities: Unit of Measure FY 2021 Beginning Inventory Acquisitions Collateral Acquired Donations Others FY 2021 Ending Inventory

Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value

Corn Meal Pounds — $ — 39 $ 9 — $ — (39) $ (9) — $ — — $ — 

Blended Foods Pounds — — 108 66 — — (104) (62) — — 4 4 

Dry Edible Beans Cwt. — — — 1 — — — (1) — — — — 

Dry Whole Peas Cwt. — 1 3 85 — — (3) (81) — — — 5 

Grain Sorghum Bushels — 1 10 77 — — (10) (78) — — — — 

Lentils Dry Cwt. — — — 9 — — — (6) — — — 3 

Nonfat Dry Milk Pounds — — 24 27 — — (24) (27) — — — — 

Rice Products Cwt., Pounds — 1 4 91 — — (4) (90) — — — 2 

Meat Pounds — — 75 117 — — (75) (117) — — — — 

Vegetable Oil Pounds 24 13 234 154 — — (250) (159) — — 8 8 

Wheat Products Bushels, Pounds — — 34 428 — — (34) (428) — — — — 

Soybeans Bushels, Pounds — — 214 65 — — (214) (65) — — — — 

Fruit and Nut Products Pounds — — 130 108 — — (130) (108) — — — — 

Cotton Bales — — — — 1 133 — — (1) (133) — — 

Other Various — $ 2 — $ 26 — $ — — $ (35) — $ 8 — $ 1 

Total $ 18 $ 1,263 $ 133 $ (1,266) $ (125) $ 23
USDA | 2022 Agency Financial Report 97

NOTE 9: General PP&E, Net

FY 2022

Category Useful Life (Years) Cost

Accumulated 

Depreciation Net Book Value

Land and Land Rights $ 73 $ — $ 73 

Improvements to Land 10 – 50 759 (756) 3 

Construction-in-Progress 438 — 438 

Buildings, Improvements and Renovations 15 – 30 3,199 (2,282) 917 

Other Structures and Facilities 15 – 50 1,879 (1,692) 187 

Equipment 5 – 20 2,170 (1,428) 742 

Assets Under Capital Lease 3 – 20 18 (16) 2 

Leasehold Improvements Varies 104 (74) 30 

Internal-Use Software 5 – 8 1,595 (1,232) 363 

Internal-Use Software in Development 80 — 80 

Total $ 10,315 $ (7,480) $ 2,835 

Total PP&E and Accumulated Depreciation Net PP&E

Balance Beginning of Year $ 2,588

Capitalized Acquisitions 596

Dispositions (1)

Revaluations (7)

Depreciation Expense (341)

Balance at End of Year $ 2,835

FY 2021

Category Useful Life (Years) Cost

Accumulated 

Depreciation Net Book Value

Land and Land Rights $ 70 $ — $ 70

Improvements to Land 10 – 50 759 (754) 5

Construction-in-Progress 324 — 324

Buildings, Improvements and Renovations 15 – 30 3,190 (2,226) 964

Other Structures and Facilities 15 – 50 1,877 (1,683) 194

Equipment 5 – 20 2,048 (1,375) 673

Assets Under Capital Lease 3 – 20 18 (16) 2

Leasehold Improvements Varies 96 (69) 27

Internal-Use Software 5 – 8 1,500 (1,227) 273

Internal-Use Software in Development 56 — 56

Total $ 9,938 $ (7,350) $ 2,588

Total PP&E and Accumulated Depreciation Net PP&E

Balance Beginning of Year $ 2,399

Capitalized Acquisitions 555

Dispositions 3

Revaluations (1)

Depreciation Expense (368)

Balance at End of Year $ 2,588
98 Section II | Financial Information

NOTE 10: Stewardship PP&E

Stewardship PP&E consist of assets whose physical properties resemble those of general PP&E that 

are traditionally capitalized in the financial statements. Due to the nature of these assets, valuation 

would be difficult and matching costs with specific periods would not be meaningful. Stewardship 

PP&E include heritage assets and stewardship land. 

Heritage Assets

Heritage assets are unique and are generally expected to be preserved indefinitely. Heritage assets may 

be unique because they have historical or natural significance, are of cultural, educational, or artistic 

importance, or have significant architectural characteristics. The assets are reported in terms of 

physical units rather than cost, fair value, or other monetary values. No amounts are shown on the 

Balance Sheet for heritage assets, except for multi-use heritage assets in which the predominant use of 

the asset is in general government operations. The costs of acquisition, betterment, or reconstruction of 

multi-use heritage assets is capitalized as general PP&E and depreciated. The costs of acquiring, 

constructing, improving, reconstructing, or renovating heritage assets, other than multi-use, is 

considered an expense in the period incurred when determining the net cost of operations. Heritage 

assets consist of collection type, such as objects gathered and maintained for exhibition, such as library 

collections, and non-collection type, such as memorials, monuments, and buildings. 

National Forests, National Grasslands and Other Sites

The Forest Service (FS) manages its heritage assets by site. Sites include national forests, national 

grasslands, other FS-managed sites, and non-FS-managed sites such as museums and university 

laboratories. The mission of the FS is to sustain the health, diversity, and productivity of the Nation’s 

forests and grasslands to meet the needs of present and future generations. The FS strives to achieve 

quality land management under the sustainable multiple-use management concept, to deliver the 

necessary products and services that are essential for enhancing natural resource stewardship, and to 

meet the diverse needs of people. 

Heritage Asset categories can include the following: 

Priority Heritage Assets (PHA): Heritage assets of distinct public value that are, or should be, actively 

maintained, and meet one or more of the following criteria:

• The property is recognized through an official designation, such as a listing on the National 

Register of Historic Places, State register, etc.

• The property is recognized through prior investment in preservation, interpretation, and use. 

Any improvement to a PHA that meets real property designation criteria is considered real 

property. 

• The property is recognized in an Agency-approved management plan. 

• The property exhibits critical deferred maintenance needs, and those needs have been 

documented. 
USDA | 2022 Agency Financial Report 99

Other Heritage Assets: Assets that may have potential important historical or cultural significance but 

lack formal listing and the demonstrated need for active maintenance.

Assemblage Assets: Any grouping of artifacts or archival materials aggregated through donation, 

agency events, site-specific or other field collection, other acquisition method, or combination therein. 

Research Centers

The Agricultural Research Service (ARS) was established on November 2, 1953. Congress first 

authorized federally supported agricultural research in the Organic Act of 1862. The statute directed 

the Commissioner of Agriculture “to acquire and preserve in his department all information he can 

obtain by means of books and correspondence, and by practical and scientific experiments.” The scope 

of USDA’s agricultural research has been expanded and extended more than 60 times since the 

Department was created.

The Natural Resource Conservation Service (NRCS) owns one heritage asset, the Tucson Plant 

Materials Center (TPMC), which is included in general PP&E as a multi-use asset. It was listed in the 

National Register of Historic Places on July 2, 1997. The TPMC develops and evaluates native plants 

and addresses an array of resource issues relating to rangeland, mines, urban land, cropland riparian 

areas, and desert land. The TPMC provides technical assistance to NRCS field offices; Resource 

Conservation and Development groups; conservation districts; Federal, State, or tribal agencies; and 

private landowners through the Southwest. 

Library Collections

The National Agricultural Library (NAL) supports agricultural research through the acquisition, 

curation, and dissemination of information needed to solve today’s agricultural challenges. NAL’s 

content ranges from special collections materials dating from the early 16th century to near-real time 

observational research data. The Library holds more than 3.5 million items. NAL was created as the 

departmental library for USDA in 1862 and became a national library in 1990. One of five national 

libraries of the U.S., it is also a key member of the Agriculture Network Information Collaborative 

(AgNIC) partnership. In its international role, NAL participates, as appropriate, in international 

agricultural information initiatives. 

Acquisition and Withdrawal of Heritage Assets

The FS generally does not construct heritage assets, although in some circumstances important sitestructural components may be rehabilitated or reconstructed into viable historic properties to provide 

forest visitors with use and interpretation. Heritage assets may be acquired through the procurement 

process, but this rarely occurs. Normally, heritage assets are part of the land acquisition and inventory 

process. Withdrawal occurs through land exchange or natural disasters. Most additions occur through 

inventory activities where previously undocumented sites are discovered and added to the total. 
100 Section II | Financial Information

Stewardship Land 

Stewardship land is land and land rights not acquired for or in connection with items of general PP&E. 

Land is defined as the solid surface of the earth, excluding natural resources. Stewardship land is 

valued for its environmental resources, recreational and scenic value, cultural and paleontological 

resources, vast open spaces, and resource commodities and revenue provided to the Federal 

Government, States, and counties. These assets are reported in terms of physical units rather than cost, 

fair value, or other monetary values. No asset amount is shown on the balance sheet for stewardship 

land. The acquisition cost of stewardship land is considered an expense in the period acquired when 

determining the net cost of operations. Stewardship land consists primarily of the national forests and 

grasslands owned by the FS and conservation easements purchased by NRCS. 

National Forests

National forests are formally established and permanently set aside and reserved for national forest 

purposes, including National Wilderness, National Primitive, National Wild and Scenic River, National 

Recreation, National Scenic Research, National Game Refuges and Wildlife Preserve, and National 

Monument areas.

National Grasslands

National grasslands are designated by the Secretary of Agriculture and permanently held by the USDA 

under Title III of the Bankhead-Jones Farm Tenant Act.

Research and Experimental Areas

Research and experimental areas are reserved and dedicated by the Secretary of Agriculture for forest 

and range research experimentation. Areas reported are located outside the exterior boundaries of a 

national forest or national grassland. 

National Preserves and Other Areas

National preserves are established to protect and preserve scientific, scenic, geologic, watershed, fish, 

wildlife, historic, cultural, and recreational values; and provide for multiple use and sustained yield of 

renewable resources. Other areas include areas administered by the FS that are not included in one of 

the above groups. 

Research Centers

ARS has public domain land used to support scientific solutions to national and global agricultural 

challenges. ARS invests in stewardship land supporting research, development, and outreach of new 

varieties and technologies to mitigate animal/plant diseases and increase productivity, sustainability, 

and product quality. USDA research supports America’s farmers and ranchers in their work to produce 

a safe and abundant food supply, with an additional focus to establish more sustainable systems to 

enhance crop and animal health.
USDA | 2022 Agency Financial Report 101

Conservation Easements

NRCS’ mission objectives in administering the conservation easement programs are to provide 

landowners with financial and technical assistance in return for maintaining and improving high 

quality productive soils, clean and abundant water, healthy plant and animal communities, clean air, 

an adequate energy supply, and working farm and ranch land. 

NRCS’ objectives in managing, monitoring, and enforcing the terms and conditions of easement deeds 

are to ensure that: 1) taxpayer investments are properly used in accordance with the intent of the 

program; 2) the agency is a good steward of the land; and 3) the land is properly maintained and 

managed compliant with agreed upon terms and conditions of the easement deed. 

Stewardship resources involve substantial investment in order to gain long-term benefits for the 

American public and help the agency satisfy its mission. The purpose of purchasing easements is to 

restore or enhance wetlands, farmland, grasslands, forest ecosystems, and restore, protect, maintain, 

and enhance the functions of floodplains. 

NRCS, on behalf of USDA, administers and owns conservation easements on private lands through a 

variety of programs. The specific uses for the land are identified under each program. Landowners are 

not allowed to withdraw from the program. However, termination or expiration may occur. 

For the purpose of reporting, all easements where NRCS (or a variant of the United States 

administered through NRCS authorities) is listed as a grantee of the easement are included in the 

agency’s stewardship land count. The NRCS stewardship land easements include conservation 

easements enrolled through program authorities and other easements administered by NRCS. As not all 

stewardship land conservation easements are permanent in duration, adjustments to end of year count 

and acreage balances may be made to account for expired or extinguished easements. 

Acquisition and Withdrawal of Stewardship Lands

The Land and Water Conservation Fund (L&WCF) Land Acquisition Program acquires land for the FS 

National Forest System (NFS). The program coordinates with a variety of partners, including State, 

local, and Tribal governments, and private landowners through statewide planning for development of 

a land-adjustment strategy.

The Land Acquisition Program preserves, develops, and maintains access to NFS lands and waters for 

the public and provides permanent access to public lands for recreation, commodity production, 

resource management, public safety, and community economic viability. 

The L&WCF statutory authority specifically defines the purpose to also include protecting the quality 

of scientific, scenic, historical, ecological, environmental, air and atmospheric, water resource, 

archeological values, as well as food and habitat for fish and wildlife, and managing the public lands 

for minerals, food, timber, and fiber. 
102 Section II | Financial Information

From these several allowable uses of program funding, the program concentrates on protecting habitat 

for priority species identified in the national forest and grassland’s Land Management Plans and 

enhancing recreational opportunities for areas with high demand for recreation. The program focuses 

acquisitions on inholdings and areas adjacent to existing NFS lands. 

FY 2022 (In Units) Beginning Balance Additions Withdrawals Ending Balance

Heritage Assets

National Forests 154 — — 154

National Grasslands 20 — — 20

Other Sites 171 1 (1) 171

Research Centers 34 — — 34

Library Collections 1 — — 1

Total 380 1 (1) 380

Stewardship Land

National Forests 154 — — 154

National Grasslands 20 — — 20

Research and Experimental Areas 3 — — 3

National Preserves and Other Areas 2 — — 2

Research Centers 33 — — 33

Conservation Easements 19,207 214 — 19,421

Total 19,419 214 — 19,633

FY 2021 (In Units) Beginning Balance Additions Withdrawals Ending Balance

Heritage Assets

National Forests 154 — — 154 

National Grasslands 20 — — 20 

Other Sites 170 2 (1) 171 

Research Centers 34 — — 34 

Library Collections 1 — — 1 

Total 379 2 (1) 380 

Stewardship Land

National Forests 154 — — 154 

National Grasslands 20 — — 20 

Research and Experimental Areas 3 — — 3 

National Preserves and Other Areas 2 — — 2 

Research Centers 33 — — 33

Conservation Easements 18,949 259 (1) 19,207

Total 19,161 259 (1) 19,419
USDA | 2022 Agency Financial Report 103

NOTE 11: Liabilities Not Covered by Budgetary Resources

In FY 2022 and FY 2021, other intragovernmental liabilities not covered by budgetary resources 

included accruals for FECA of $120 million and $74 million, contract disputes claims payable to 

Treasury’s Judgment Fund of $27 million and $27 million, unemployment compensation of 

$10 million and $16 million, and Technology Modernization Fund of $9 million and $9 million, 

respectively.

In FY 2022 and FY 2021, other liabilities with the public not covered by budgetary resources included 

contingent liabilities of $79 million and $69 million, Payments to States of $329 million and 

$104 million, single family housing escrow of $55 million and $51 million, loans paid in advance for 

multi-family housing of $25 million and $25 million, and stewardship contracting product sales of 

$4 million and $4 million, respectively.

Item FY 2022 FY 2021

Intragovernmental

Accounts payable $ — $ 51 

Other 166 126 

Subtotal Intragovernmental 166 177 

Other than Intragovernmental

Federal Employee Benefits Payable 1,332 1,376 

Environmental and Disposal Liabilities 236 255 

Insurance and Guarantee Program Liabilities 12,611 11,321 

Other 492 253 

Subtotal Other than Intragovernmental 14,671 13,205 

Total Liabilities Not Covered by Budgetary Resources 14,837 13,382 

Total Liabilities Covered by Budgetary Resources 172,090 169,221 

Total Liabilities Not Requiring Budgetary Resources 5,963 2,075 

Total Liabilities $ 192,890 $ 184,678 

NOTE 12: Debt

FY 2022 Beginning Balance Net Borrowing Ending Balance

Source of Debt

Debt Owed to the Federal Financing Bank $ 48,772 $ 3,073 $ 51,845

Debt Owed to Treasury other than FFB 84,049 3,293 87,342

Total Debt $ 132,821 $ 6,366 $ 139,187

FY 2021 Beginning Balance Net Borrowing Ending Balance

Source of Debt

Debt Owed to the Federal Financing Bank $ 46,679 $ 2,093 $ 48,772

Debt Owed to Treasury other than FFB 96,450 (12,401) 84,049

Total Debt $ 143,129 $ (10,308) $ 132,821
104 Section II | Financial Information

NOTE 13: Federal Employee Benefits Payable

Other than Intragovernmental: FY 2022 FY 2021

Employer Contributions and Payroll Taxes Payable $ 2 $ — 

Unfunded Leave 707 713 

Actuarial FECA Liability 625 663 

Total Federal Employee Benefits Payable $ 1,334 $ 1,376 

NOTE 14: Environmental and Disposal Liabilities

USDA is subject to the Comprehensive Environmental Response, Compensation, and Liability Act, the 

Clean Water Act, and the Resource Conservation and Recovery Act for cleanup of hazardous waste. In 

FY 2022 and FY 2021, FS estimates the liability for total cleanup costs for sites known to contain 

hazardous waste to be $2 million and $2 million, respectively, based on actual cleanup costs at similar 

sites. In FY 2022 and FY 2021, CCC estimates the liability for total cleanup costs for sites known to 

contain hazardous waste to be $45 million and $48 million, respectively, based on actual cleanup costs 

at similar sites. CCC estimates the range of potential future losses due to remedial actions to be 

between $46 million and $676 million. These estimates will change as new sites are discovered, 

remedy standards change, and new technology is introduced. 

In FY 2022 and FY 2021, ARS estimated the liability for cleanup of the Beltsville Agricultural 

Research Center (BARC) to be $46 million and $39 million, respectively. ARS is evaluating and 

remediating areas of concern on BARC that are contaminated or threaten to contaminate ground and 

surface water with pesticides, solvents, metals, and other hazardous substances. 

USDA is also subject to Asbestos National Emissions Standards for Hazardous Air Pollutants. 

In FY 2022 and FY 2021, the Department estimated its liability for asbestos-related cleanup of real 

property to be $148 million and $169 million, respectively. The liability is calculated using total square

footage of real property expected to contain asbestos times a cost factor based on historical actual 

cleanup costs, adjusted for inflation, including any other identifiable costs, e.g., survey cost. As 

additional information becomes available, key assumptions will be reevaluated, cost estimates will be 

revised, and necessary adjustments will be made to the liability recognition.

See Note 18: Commitments and Contingencies 
USDA | 2022 Agency Financial Report 105

NOTE 15: Insurance Programs

In crop year 2022, there were approximately 1.2 million standard reinsurance and livestock policies 

totaling approximately $193,180 million insurance protection in force. 

The AIPs for Fiscal Year 2022 are as follows:

• Ace American Insurance Company

• American Agri-Business Insurance Company 

• American Agricultural Insurance Company 

• CGB Insurance Company 

• Church Mutual Insurance Company 

• Country Mutual Insurance Company 

• Farmers Mutual Hail Insurance Company of Iowa 

• Great American Insurance Company

• Hudson Insurance Company 

• NAU Country Insurance Company 

• Producers Agriculture Insurance Company

• Rural Community Insurance Company 

• Stratford Insurance Company 

• XL Reinsurance America Inc.

The funds within the Federal Crop Insurance Program can be used to pay any authorized expense of 

the program. The following table lists the type of funds received and the resources used by the program 

for 2022 and 2021. 

Federal Crop Insurance Program Resource and Resources Used

Resource Fiscal Year 2022 Uses Fiscal Year 2022

Producer Premiums Collected $ 6,252 Obligations for Delivery Costs $ 2,206

Producer Fees Collected 49 Obligations for Indemnities 13,637

Underwriting Loss Collected from AIPs 4 Obligations for Underwriting Gain 2,731

Appropriations 12,353 Obligations for Initiatives & Other Costs 73

Appropriations Transfers (13)

Unobligated Balance Beginning of Year 594 Unobligated Balance End of Year 592

Total $ 19,239 Total $ 19,239

Resource Fiscal Year 2021 Uses Fiscal Year 2021

Producer Premiums Collected $ 4,146 Obligations for Delivery Costs $ 1,915

Producer Fees Collected 50 Obligations for Indemnities 8,503

Underwriting Loss Collected from AIPs 90 Obligations for Underwriting Gain 1,517

Appropriations 7,718 Obligations for Initiatives & Other Costs 62

Appropriations Transfers (13)

Unobligated Balance Beginning of Year 596 Unobligated Balance End of Year 590

Total $ 12,587 Total $ 12,587
106 Section II | Financial Information

In addition to the mandatory FCIC fund, Risk Management Agency (RMA) obligated $69.6 million in 

Salaries and Expenses funds to administer the Federal Crop Insurance Program in 2022. The Federal 

Crop Insurance Act requires the total premium, including producer paid premium and premium 

subsidy, to be established to achieve an overall projected loss ratio of not greater than 1.0 over an 

extended period of time. The FCIC Act dictates the percentage of subsidized premium. The estimation 

of expected indemnities is generally based on the observed historical rate of loss often referred to as 

the ‘loss cost’ method. 

In fiscal year 2022 there was widespread drought and excessive heat in many parts of the nation, 

causing catastrophic damage to crops. To provide relief, RMA deferred collection of any unpaid 

producer premium without interest by two months. The total amount of deferred collections was 

approximately $4,600 million. 

FCIC collects administrative fees from producers in return for catastrophic risk protection coverage 

and additional levels coverage. The rates are set by statute. For reinsurance year 2022, the catastrophic 

risk protection fees were $655 per crop per county and $30 for additional levels coverage per crop 

per county. 

FCIC may request the Secretary of Agriculture to provide borrowing authority funds of the CCC if at 

any time the amounts in the insurance fund are insufficient to allow FCIC to carry out its duties. Even 

though the authority exists, FCIC did not request CCC funds in the reporting period. Instead, FCIC 

uses such sums as are necessary from the U.S. Treasury to cover program costs that exceed collections. 

Loss Recognition

The end of the government’s fiscal year, on September 30, occurs while many crops are still in the field 

and subject to ongoing natural risks causing significant uncertainty for the end-of-fiscal-year estimates 

of claims. Estimates can often vary by 20 percent or more from results.

Estimates of claims are based on current crop conditions and historical trends for a given crop 

condition. Therefore, it is assumed the expected claims will be like levels observed historically. 

Estimates assume there is a relationship between crop yields, harvest prices, and the resulting loss 

ratios. The indemnity for an individual producer is based on the difference between the producer’s 

actual yield and his/her average yield. Similarly, for revenue plans, the indemnity is based on the 

difference between the actual harvest price and the “base” price which is the estimated harvest price at 

the time the crop is planted. 

Regression analyses are calculated based on the historic relationships between the crop yields and 

harvest prices (when necessary) for each crop in each state and the resulting loss ratios in each of those 

years. The resulting regression coefficients are used in conjunction with the most recent National 

Agricultural Statistics Service (NASS) forecasts and commodity futures prices to calculate a projected 

loss ratio for each crop/state combination. 
USDA | 2022 Agency Financial Report 107

There are uncertainties associated with these assumptions including:

• Actual yields, which may be different than those provided by the NASS estimates; 

• Changes in weather patterns close to harvesting dates, which could affect yields but not be 

reflected in the NASS estimates; 

• Commodity prices, which may change from those in the market because of many factors (such 

as weather, yields, and economic conditions); and 

• Significant catastrophic weather events (i.e. hurricanes and freezes) occurring near the balance 

sheet date, which could affect estimated crop yields and crop prices. 

There are uncertainties associated with assumptions used to estimate losses on insurance claims. As a 

result, the ultimate liability may differ significantly from the recorded estimate. Indemnity costs are 

paid from premium proceeds, including producer paid premium and premium subsidies. If indemnity 

costs exceed funds available, additional funds will be requested and apportioned to FCIC. 

Insurance Liabilities

The following table shows the insurance liabilities as of September 30, 2022 and September 30, 2021. 

Insurance Liabilities 2022 2021 

Estimated Losses on Insurance Claims

Liability for Unpaid Insurance Claims $ 3,007 $ 3,413

Liability for Losses on Remaining Coverage 8,574 6,572

Total Estimated Losses on Insurance Claims $ 11,581 $ 9,985

Unearned Revenue 1,694 1,189

Underwriting Gain 4,030 3,044

Other Insurance Liabilities 20 8

Total Insurance Liabilities $ 17,325 $ 14,226

Reported insurance liabilities increased significantly from fiscal year 2021 to fiscal year 2022. 

This increase is attributed to: 

• Higher coverage amounts resulting from higher crop prices 

• Higher level of losses caused by widespread drought and excessive heat

• Increased participation in certain insurance products 

Estimated Losses on Insurance Claims.

The following tables show information for changes in the estimated losses on insurance claims for 

fiscal year 2022 and fiscal year 2021. 

Changes in Estimated Losses on Insurance Claims 2022 2021

Beginning Balance $ 9,985 $ 4,886

Claims Expenses 13,638 8,477

Payments to Settle Claims (13,403) (8,570)

Adjustment of Accruals for Estimated Losses 1,361 5,192

Ending Balance $ 11,581 $ 9,985
108 Section II | Financial Information

The table above provides a look forward of the Liability for Estimated Losses on Insurance Claims 

from the prior year to the current year. The Claims Expenses represents actual claims reported. In fiscal 

year 2022 the actual claims reported were $5,200 million more than fiscal year 2021. This was a result 

of higher losses related to higher commodity prices and widespread drought and excessive heat. 

Payments to Settle Claims are the actual payments to producers. 

The Adjustment of Accrual for Estimated Losses is the reversal of the prior year accrual combined with 

the current year accrual for estimated losses. The indemnity projection is based on two major factors: 

losses due to a shortfall in yield and changes in commodity prices impacting revenue plans. 

The principal data source for yield projections is the NASS Crop Production report. The NASS Crop 

Production report is considered to represent USDA’s official perspective on the current state of 

agricultural production. It is based on a survey of growers along with inspections of randomly selected 

sections of farms. Although the NASS Crop Production report is scrutinized by multiple sources, it is 

still an estimate and is subject to some uncertainty.

The revenue plans of insurance base their indemnities on the futures prices for specific contracts and 

exchanges. The best prediction of the final price for the futures contract is the most current price of the 

relevant commodities exchange. At the time the indemnity projection is made, up-to-date futures prices 

are taken from multiple exchanges. Again, this is subject to uncertainty due to fluctuations in markets. 

Liability for Unpaid Insurance Claims 

Liability for unpaid insurance claims are claims for adverse events that occurred before the end of the 

reporting period. Under SFFAS 51, for the claim to be considered incurred, a single event or a series of 

events must be completed by the end of the reporting period to be considered an adverse event of 

the period. 

The liability for unpaid insurance claims is comprised of the following: 

• Funds in the Escrow accounts to cover payments to producers who have not cashed their 

indemnity payments 

• Claims reported but not paid as of the end of the reporting period 

• Incurred but Not Reported (IBNR) is estimated claims from events that have occurred as of the 

end of the reporting period but have not yet been reported for settlement. 

FCIC uses a historical trend analysis based upon the data from the prior years to determine the value of 

claims incurred for the current reinsurance year as of the financial statement reporting date. When the 

Summary of Business (SOB) is higher than the estimate at year end, the SOB amount is used. 
USDA | 2022 Agency Financial Report 109

Liability for Losses on Remaining Coverage

The liability for losses on remaining coverage as of the end of the reporting period represents the 

estimated amounts to be paid to settle claims for the remaining open arrangement period exceeding 

losses associated with the related unearned premiums as of the end of the reporting period. 

The liability for losses on remaining coverage is the total projected losses minus actual losses reported, 

IBNR, and losses associated with unearned premium. 

Liability for Unearned Insurance Premiums 

Premium revenue is comprised of producer paid premium. Producer paid premium is recognized as 

earned proportionately over each crop’s growing season. The portion of producer paid premium not 

recognized at the conclusion of the fiscal year is classified as insurance and guarantee program 

liabilities in the balance sheet. Most of the increase in fiscal year 2022 was due to higher premiums 

caused by higher crop prices. 

2022 2021

Liability for Unearned Insurance Premiums $ 1,694 $ 1,189

Underwriting Gain/Loss

Underwriting gain/loss is the AIPs portion of earnings or losses on the insurance book of business due 

from or to FCIC. A periodic settlement, as stipulated in the Standard Reinsurance Agreement (SRA), is 

calculated where results of business written by AIPs are determined and an experience-rated gain or 

loss on business ceded from AIPs is computed. Payments due to AIPs for a net gain are paid in the 

second fiscal year following the reinsurance year. Underwriting losses are paid to FCIC periodically.

Underwriting Gain 2022 2021

Current Year Estimated Gains $ 1,517 $ 1,587

Actual Underwriting Gains 2,513 1,457

Total Underwriting Gain Liability $ 4,030 $ 3,044

At the end of fiscal year 2022, the underwriting gain liability includes amounts for reinsurance years 

2021 and 2022. The reinsurance year 2022 estimated underwriting gain was $1,517 million based on a 

loss ratio of 1.01 for standard reinsurance agreements. The actual reinsurance year 2021 Underwriting 

Gain of $2,513 million was based on an actual loss ratio of .69 and will be paid in fiscal year 2023. 

The underwriting gain liability for fiscal year 2021 includes amounts for reinsurance year 2020 and 

2021. The reinsurance year 2021 estimated underwriting gain was $1,587 million and was based on a 

loss ratio of .95 for standard insurance agreements. The actual reinsurance year 2020 underwriting gain 

was $1,457 million and was based on an actual loss ratio of .86 and was paid in fiscal year 2022. 
110 Section II | Financial Information

NOTE 16: Other Liabilities

Intragovernmental:

Other Debt

In FY 2022 and FY 2021, other debt represents a repayable advance to Treasury of $2,595 million for 

the Agricultural Disaster Relief Trust Fund.

Liability for Non-Entity Assets not reported on the Statement of Custodial Activities

In FY 2022 and FY 2021, liability for non-entity assets not reported on the Statement of Custodial 

Activities represents liquidating fund balances of $7,800 million and $8,855 million, respectively due 

to the General Fund. 

Other Liabilities Without Related Budgetary Obligations

In FY 2022, other liabilities without related budgetary obligations includes amount due to the General 

Fund of $3,197 million for a financing event that did not occur until FY 2023. 

Other than Intragovernmental:

Other Liabilities With Related Budgetary Obligations

In FY 2022, other liabilities with related budgetary obligations with the public included Agricultural 

Risk Coverage of $97 million; Price Loss Coverage of $216 million; Grants, Subsidies, and 

Contributions of $4,872 million; Conservation Reserve Program of $1,772 million; and other accrued 

liabilities of $754 million.

In FY 2021, other liabilities with related budgetary obligations with the public included Agricultural 

Risk Coverage of $90 million; Price Loss Coverage of $2,025 million; Grants, Subsidies, and 

Contributions of $7,025 million; Conservation Reserve Program of $1,713 million; and other accrued 

liabilities of $765 million.

Other Liabilities Without Related Budgetary Obligations

In FY 2022, other liabilities without related budgetary obligations with the public included Payments 

to States of $329 million, single family housing escrow of $55 million, loans paid in advance for 

multi-family housing of $25 million, and other accrued liabilities of $4 million.

In FY 2021, other liabilities without related budgetary obligations with the public included Payments 

to States of $104 million, single family housing escrow of $51 million, loans paid in advance for 

multi-family housing of $25 million, and other accrued liabilities of $5 million.
USDA | 2022 Agency Financial Report 111

FY 2022 Non-Current Current Total

Intragovernmental:

Other Liabilities With Related Budgetary Obligations $ — $ 41 $ 41

Employer Contributions and Payroll Taxes — 161 161

Unfunded FECA Liability 66 54 120

Other Unfunded Employment Related Liability — 10 10

Liability for Clearing Accounts — 18 18

Other Debt — 2,595 2,595

Custodial Liability — 257 257

Liability for Non-Entity Assets not reported on the Statement of Custodial Activities — 7,800 7,800

Other Liabilities Without Related Budgetary Obligations — 3,234 3,234

Total Intragovernmental $ 66 $ 14,170 $ 14,236

Other than Intragovernmental:

Other Liabilities With Related Budgetary Obligations — 7,711 7,711 

Accrued Funded Payroll and Leave — 611 611 

Liability for Nonfiduciary Deposit Funds and Undeposited Collections — 588 588 

Liability for Clearing Accounts — (18) (18)

Contingent Liabilities — 79 79 

Capital Lease Liability 1 1 2 

Custodial Liability — 1 1 

Other Liabilities Without Related Budgetary Obligations 25 388 413 

Total Other than Intragovernmental $ 26 $ 9,361 $ 9,387

Total Other Liabilities $ 92 $ 23,531 $ 23,623

FY 2021 Non-Current Current Total

Intragovernmental:

Other Liabilities With Related Budgetary Obligations $ — $ 43 $ 43

Employer Contributions and Payroll Taxes — 142 142

Unfunded FECA Liability 29 95 124

Other Unfunded Employment Related Liability — 18 18

Liability for Clearing Accounts — 17 17

Other Debt — 2,595 2,595

Custodial Liability — 120 120

Liability for Non-Entity Assets not reported on the Statement of Custodial Activities — 8,855 8,855

Other Liabilities Without Related Budgetary Obligations 27 9 36

Total Intragovernmental $ 56 $ 11,894 $ 11,950

Other than Intragovernmental:

Other Liabilities With Related Budgetary Obligations — 11,618 11,618

Accrued Funded Payroll and Leave — 534 534

Liability for Nonfiduciary Deposit Funds and Undeposited Collections — 589 589

Liability for Clearing Accounts — (22) (22)

Contingent Liabilities — 69 69

Capital Lease Liability 2 1 3

Custodial Liability — 1 1

Other Liabilities Without Related Budgetary Obligations 25 160 185

Total Other than Intragovernmental $ 27 $ 12,950 $ 12,977

Total Other Liabilities $ 83 $ 24,844 $ 24,927
112 Section II | Financial Information

NOTE 17: Leases

Capital Leases

USDA enters into leasing agreements through leasing authority delegated by the General Services 

Administration (GSA). USDA acquires use of various general facilities (buildings and plant material 

centers), equipment, and land with renewal options that range from 0 to 10 years and which are located 

mainly in urban areas. The portfolio includes leases with escalation clauses based on the Consumer 

Price Index (CPI), and amortization periods with a range of 8 to 25 years. 

Operating Leases

USDA enters into leasing agreements through leasing authority delegated by GSA. USDA leases 

various land, buildings, and equipment. 

Major non-cancelable operating leases consists primarily of office space, most with renewal options 

that range from 1 to 25 years with escalation clauses based on the CPI, and lease periods with a range 

of 1 to 30 years. 

The USDA Headquarters complex (Whitten Building and South Building) is a government owned 

facility, which is part of the GSA Federal Buildings Inventory. As the result of a 1998 agreement 

between GSA and USDA, a moratorium was placed on the rental billings for the Headquarters complex 

beginning in FY 1999. At current market rate, the estimated yearly rental payment for the above 

mentioned space would be $69 million. This agreement is still in effect and as a result, USDA activities 

located in the Headquarters complex are not billed for rental costs. Imputed costs are not recognized. 
USDA | 2022 Agency Financial Report 113

FY 2022

Capital Leases

Summary of Assets Under Capital Leases Federal Non-Federal Total

Land and Building $ — $ 18 $ 18

Accumulated Amortization — (16) (16)

Total $ — $ 2 $ 2 

Future Payments Due Land & Buildings Machinery & Equipment Totals

Federal Non-Federal Federal Non-Federal Federal Non-Federal

Fiscal Year 2023 $ — $ 3 $ — $ — $ — $ 3

Fiscal Year 2024 — 1 — — — 1

Fiscal Year 2025 — — — — — —

Fiscal Year 2026 — — — — — —

Fiscal Year 2027 — — — — — —

After 5 Years — — — — — —

Total Future Lease Payments — 4 — — — 4

Less: Imputed Interest — 2 — — — 2

Less: Executory Costs — — — — — —

Net Capital Lease Liability — 2 — — — 2

Capital Lease Liabilities Covered by Budgetary Resources $ — $ 2 $ — $ — $ — $ 2

Operating Leases

Future Payments Due for Non-Cancellable 

Operating Leases Land & Buildings Machinery & Equipment Totals

Federal Non-Federal Federal Non-Federal Federal Non-Federal

Fiscal Year 2023 $ 11 $ 56 $ — $ 1 $ 11 $ 57

Fiscal Year 2024 — 36 — 2 — 38

Fiscal Year 2025 — 30 — — — 30

Fiscal Year 2026 — 26 — — — 26

Fiscal Year 2027 — 20 — — — 20

After 5 Years — 102 — — — 102

Total Future Lease Payments $ 11 $ 270 $ — $ 3 $ 11 $ 273
114 Section II | Financial Information

FY 2021

Capital Leases

Summary of Assets Under Capital Leases Federal Non-Federal Total

Land and Building $ — $ 18 $ 18

Accumulated Amortization — (16) (16)

Total $ — $ 2 $ 2

Future Payments Due Land & Buildings Machinery & Equipment Totals

Federal Non-Federal Federal Non-Federal Federal Non-Federal

Fiscal Year 2022 $ — $ 3 $ — $ — $ — $ 3

Fiscal Year 2023 — 2 — — — 2

Fiscal Year 2024 — 1 — — — 1

Fiscal Year 2025 — — — — — —

Fiscal Year 2026 — — — — — —

After 5 Years — 1 — — — 1

Total Future Lease Payments — 7 — — — 7

Less: Imputed Interest — 3 — — — 3

Less: Executory Costs — 1 — — — 1

Net Capital Lease Liability — 3 — — — 3

Capital Lease Liabilities Covered by Budgetary 

Resources $ — $ 3 $ — $ — $ — $ 3

Operating Leases

Future Payments Due for Non-Cancellable 

Operating Leases Land & Buildings Machinery & Equipment Totals

Federal Non-Federal Federal Non-Federal Federal Non-Federal

Fiscal Year 2022 $ 12 $ 61 $ — $ 1 $ 12 $ 62

Fiscal Year 2023 1 40 — 1 1 41

Fiscal Year 2024 1 33 — — 1 33

Fiscal Year 2025 1 26 — — 1 26

Fiscal Year 2026 1 22 — — 1 22

After 5 Years 1 107 — — 1 107

Total Future Lease Payments $ 17 $ 289 $ — $ 2 $ 17 $ 291
USDA | 2022 Agency Financial Report 115

NOTE 18: Commitments and Contingencies

The Department is subject to various contingencies related to legal and environmental claims as well 

as commitments under contractual and other commercial obligations. 

No amounts have been accrued in the financial statements for claims where the amount is uncertain or 

where the probability of judgment is remote. See Note 14 for discussion of environmental 

contingencies. 

FY 2022 Accrued Liabilities Estimated Range of Loss

Lower End Upper End

Legal Contingencies:

Probable $ 79 $ 79 $ 548

Reasonably Possible 143 755

Environmental Contingencies

Probable 241 241 241

Reasonably Possible 46 676

FY 2021 Accrued Liabilities Estimated Range of Loss

Lower End Upper End

Legal Contingencies:

Probable $ 69 $ 69 $ 799

Reasonably Possible 544 654

Environmental Contingencies

Probable 258 258 258

Reasonably Possible 48 458

Commitments to extend loan guarantees are estimated to be $4,605 million and $5,600 million in 

FY 2022 and FY 2021, respectively. 

NOTE 19: Funds from Dedicated Collections

Funds from dedicated collections are financed by specifically identified revenues, often supplemented 

by other financing sources, which remain available over time. These specifically identified revenues 

and other financing sources are required by statute to be used for designated activities or purposes and 

must be accounted for separately from the Government’s general revenues. 

Financial information for all significant funds from dedicated collections follows the descriptions of 

each fund’s purpose shown below.
116 Section II | Financial Information

Agricultural Marketing Service (AMS)

Expenses and Refunds, Inspection and Grading of Farm Products

The commodity grading programs provide grading, examination, and certification services for a wide 

variety of fresh and processed food commodities using federally approved grade standards and 

purchase specifications. This fund is financed by the collection of fees charged to producers of various 

food commodities who request, on a voluntary basis, inspection and grading of agricultural food 

commodities. This program is authorized by the Agricultural Marketing Act of 1946 (7 U.S. Code 

(U.S.C.) 1621–1627). 

Funds for Strengthening Markets, Income, and Supply 

The funds for strengthening markets, income, and supply are used to purchase commodities for schools 

and elderly feeding programs, to provide goods and other necessities in emergencies and disasters, and 

to purchase agricultural commodities to stabilize markets. The fund is permanently financed by 

statutory transfer of an amount equal to 30 percent of customs receipts collected during each calendar 

year and is automatically appropriated for expanding outlets for perishable, non-price supported 

commodities. An amount equal to 30 percent of receipts collected on fishery products is transferred to 

the Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA). All 

remaining funding in excess of the amount made available under the 2008 Farm Bill to carry out 

Section 32 activities is transferred to the Food and Nutrition Service and is used to purchase 

commodities under section 6 of the National School Lunch Act and other authorities specified in the 

child nutrition appropriation. Funds are available under section 32 of the Act of August 24, 1935, as 

amended (7 U.S.C. 612c). 

Animal and Plant Health Inspection Service (APHIS)

Agricultural Quarantine Inspection User Fee Account 

This fund is used to record and report expenditures and revenue associated with operating Agricultural 

Quarantine Inspection (AQI) activities at ports of entry. The Farm Bill of 1990, as amended by the 

Federal Agriculture Improvement and Reform Act of 1996, gave APHIS the authority to charge user 

fees for AQI services and to use the revenue to fund AQI activities. In March of 2003, a portion of the 

AQI program was transferred to the Department of Homeland Security (DHS); however, APHIS 

retained the authority to collect AQI revenue. APHIS transfers a portion of the revenue to DHS 

periodically throughout the year to fund its expenditures. The revenue in the fund is collected from 

airlines, air passengers, vessels, trucks, and railroad cars that are subject to AQI inspection at ports of 

entry. These user fees are an inflow of revenue from the public that is used to fund AQI inspections 

that are required by APHIS and DHS. The authority is codified in 21 U.S.C. 136(a). 
USDA | 2022 Agency Financial Report 117

Forest Service (FS)

Acquisition of Lands to Complete Land Exchanges

Land Exchange Acquisitions is authorized by the Act of December 4, 1967, as amended (16 U.S.C. 

484a), commonly known as The Sisk Act. All deposits received during the previous fiscal year are 

made available by the annual appropriation act. The authorizing legislation provides for cash deposits 

of a portion or all of the value of the selected lands in exchange cases with States, local governments, 

and public school districts or other public school authority, to be used to purchase similar lands, or in 

cases of special legislation, for authorized expenditures from funds deposited by non-federal parties.

Cooperative Work

Cooperative contributions are deposited for disbursement in compliance with the terms and provisions 

of the agreement between the cooperator and the FS. Cooperators include timber purchasers, not-forprofit organizations, and local hunting and fishing clubs. The governing authorities are the Cooperative 

Funds Act of July 31, 1914 (16 U.S.C. 498) and the Knutson Vandenberg Act. 

Land Acquisition

Funds are appropriated annually from Interior’s Land and Water Conservation Fund, but are no-year 

appropriations to the Forest Service for acquisition of land pursuant to the Land and Water Conservation 

Act, as amended and other land acquisition authorities of the Forest Service (section 40.12). 

National Grasslands Receipts

Title III, Bankhead-Jones Farm Tenant Act (Act) of July 22, 1937, as amended (7 U.S.C. 1012) 

authorizes annual payments on a calendar year basis to counties, equal to 25 percent of revenues 

received during the year from sales activities and fees on lands designated as national grasslands or 

land utilization projects. Counties use these payments for public schools and roads. 

The administrative process of aggregating the receipts on a calendar year basis (involving two fiscal 

years) and disbursing the payments requires an unavailable receipt account (National Grasslands 

Receipts, Forest Service) and an available receipt account (Payments to Counties, National Grasslands, 

Forest Service).

National Forest Fund Receipts

The Act of May 23, 1908, as amended (16 U.S.C. 500), requires (with a few exceptions) that all receipts 

from national forest activities be aggregated each fiscal year in order to calculate the portion which is 

paid to the States in which the national forests are located. The payments must be used for public 

schools and roads in the county or counties in which the national forests are situated. Originally, the 

States’ portion of receipts was 25 percent, but past statutory amendments have changed the calculation 

factors from time to time. Receipts include revenues from the sale of timber and other forest products; 

fees for grazing, special-use permits, power and mineral leases; and recreation user fees. 
118 Section II | Financial Information

National Parks and Public Land Legacy Restoration Fund 

The Great American Outdoors Act (GAOA) (P.L. 116-152) provides authority to establish the National 

Parks and Public Land Legacy Restoration Fund to address the maintenance backlog on public lands. 

The funds are allocated across GAOA specified Bureaus/Agencies including the USDA Forest Service 

for fiscal years 2021 through 2025. 

Payments to States, National Forest Fund 

The Act of May 23, 1908, as amended (16 U.S.C. 500), commonly known as Payments to States, 

requires with a few exceptions, that 25 percent of all monies received from the national forests and 

deposited into the National Forest Fund during a fiscal year from timber, grazing, special-use permits, 

power and mineral leases, and admission and user fees be paid to the States in which the national 

forests are located, for public schools and public roads in the county or counties in which the national 

forests are situated. 

Recreation Fee Demonstration Program 

The Recreation Fee Demonstration Program fund receives deposits of recreation fees collected from 

projects that are part of the Recreation Fee Demonstration Program. These monies are retained and 

used for backlog repair and maintenance of recreation areas, sites, or projects. These funds are also 

used for interpretation, signage, habitat or facility enhancement, resource preservation, annual 

operation, maintenance, and law enforcement related to public use of recreation areas and sites. 

The Recreation Fee Demonstration Program is authorized by 16 U.S.C. 4601-6(a).

Reforestation Trust Fund

The Reforestation Trust Fund, 16 U.S. Code 1606a, receives its budgetary resources from periodic 

transfers by the U.S. Treasury of tariffs from exported timber. Amounts may be invested and reinvested 

by the FS in U.S. Treasury interest bearing Government securities. The funds are available for use by 

the Secretary of Agriculture to obligate for reforestation and timber-stand improvement activities.

Restoration of Forest Lands and Improvements

The Restoration of Forest Lands and Improvements Acts (16 U.S.C. 579(c)) states any monies received 

by the United States with respect to lands under the administration of the Forest Service (a) as a result 

of the forfeiture of a bond or deposit by a permittee or timber purchaser for failure to complete 

performance of improvement, protection, or rehabilitation work required under the permit or timber 

sale contract or (b) as a result of a judgment, compromise, or settlement of any claim, involving 

present or potential damage to lands or improvements, shall be deposited into the Restoration of Forest 

Lands and Improvements Account. The monies are then made available until expended to cover the 

cost to the United States of any improvement, protection, or rehabilitation work on lands under the 

administration of the Forest Service rendered necessary by the action which led to the forfeiture, 

judgment, compromise, or settlement, provided that any portion of the monies received in excess of the 

amount expended in performing the work necessitated by the action which led to their receipt shall be 

transferred to miscellaneous receipts.
USDA | 2022 Agency Financial Report 119

State and Private Forestry 

The FY 2004 Department of the Interior and Related Agencies Appropriation Act (P.L. 108-108) 

authorizes the Forest Service to receive a transfer of receipts from the Department of the Interior’s 

Land and Water Conservation Fund to finance the existing Forest Legacy Program. Treasury 

established a new special fund, “State and Private Forestry” to accommodate for this program, and the 

funding is available until expended. The program expenditures include grants and an occasional land 

purchase, but no real property will be procured or constructed. 

Stewardship Contracting Product Sales

Stewardship End Result Contracting Projects (16 U.S.C. 6591c), amends the Healthy Forests 

Restoration Act of 2003, and states the Forest Service, via agreement or contract as appropriate, may 

enter into stewardship contracting projects with private persons or other public or private entities to 

perform services to achieve land management goals for the national forests and the public lands that 

meet local and rural community needs. The value of timber or other forest products removed may be 

applied as an offset against the cost of services received under the agreements or contracts. Monies 

earned from such agreements or contracts may be retained by the Forest Service and shall be available 

for expenditure without further appropriation at the project site from which the monies are collected or 

at another project site. In addition, if the offset value of the forest products exceeds the value of the 

resource improvement treatments, the Forest Service may collect any residual receipts under the Act of 

June 9, 1930 (commonly known as the Knutson-Vandenberg Act, 16 U.S.C. 576); and apply the excess 

to other authorized stewardship projects. Finally, the Forest Service is required to annually report to the 

Committee of Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of 

the House of Representatives on the status and accomplishments of these agreements and contracts. 

Timber Salvage Sales

The Salvage Sale Fund was established to facilitate the timely removal of timber damaged by fire, 

wind, insects, diseases, or other events. Amounts collected from the sale of salvaged timber are used on 

other qualifying salvage sales to cover the cost of preparing and administering the sales. The Timber 

Salvage Sales program is authorized by 16 U.S.C. 472(a). 

National Institute of Food and Agriculture (NIFA)

Native American Institutions Endowment Fund

The Native American Institutions Endowment Fund was authorized by P.L. 103-382 and provided an 

initial installment to establish an endowment to benefit the 1994 land-grant institutions. The public law 

states that “This program will enhance educational opportunities for Native Americans by building 

educational capacity at these institutions in the areas of student recruitment and retention, curricula 

development, faculty preparation, instruction delivery systems, and scientific instrumentation for 

teaching.” While the principal (corpus) of the fund cannot be used, the interest that is earned on the 

endowment fund investments in Treasury instruments can be used for the purposes described above. 

After the close of a fiscal year, the income is distributed after making adjustments for the cost of 

administering the fund. 
120 Section II | Financial Information

Other

Financial information is summarized for all other funds from dedicated collections with total assets 

less than $50 million listed below.

Natural Resources Conservation Service

• Damage Assessment and Restoration Revolving Fund 

• Miscellaneous Contributed Funds 

Food Safety and Inspection Service

• Expenses and Refunds, Inspection of Farm Products 

Agricultural Marketing Service

• Inspection and Weighing Services

• Perishable Agricultural Commodities Act 

• Wool Research, Development and Promotion Trust Fund 

Animal Plant Health Inspection Service

• Miscellaneous Contributed Funds 

Forest Service

• Acquisition of Lands for National Forests, Special Acts 

• Administration of Rights-of-Way and Other Land Uses Fund 

• Communication Site Administration

• Expenses, Brush Disposal 

• Gifts and Bequests 

• Gifts, Donations and Bequests for Forest and Rangeland Research

• Hardwood Technology Transfer and Applied Research Fund 

• Land Between the Lakes Management Fund

• Land Between the Lakes Trust Fund

• Licensee Program

• Midewin National Prairie (MNP) Rental Fee Account

• Operation and Maintenance of Forest Service Quarters

• Payment to Minnesota (Cook, Lake and Saint Louis Counties) 

• Quinault Special Management Area

• Range Betterment Fund

• Receipts for Construction of Administrative Improvements- Arizona and Taos, New Mexico 

Land Conveyance 

• Roads and Trails for States, National Forest Fund 

• Timber Roads, Purchaser Elections 

• Timber Sales Pipeline Restoration Fund 
USDA | 2022 Agency Financial Report 121

Rural Development

• Alternative Agricultural Research and Commercialization Revolving Fund 

Agricultural Research Service

• Concessions Fees and Volunteer Services

• Gifts and Bequests 

• Miscellaneous Contributed Funds 

National Agricultural Statistics Service

• Miscellaneous Contributed Funds 

Economic Research Service

• Miscellaneous Contributed Funds 

Foreign Agricultural Service

• Foreign Service National Separation Liability Trust Fund 

• Gifts and Bequests 

• Miscellaneous Contributed Funds 

Office of the Secretary

• Gifts and Bequests 

Office of Partnerships and Public Engagement

• Gifts and Bequests 

Office of Communications

• Gifts and Bequests 

Office of General Counsel

• Gifts and Bequests 

Office of the Inspector General

• Inspector General Assets Forfeiture, Department of Justice

• Inspector General Assets Forfeiture, Department of Treasury
122 Section II | Financial Information

FY 2022 AMS AMS APHIS FS

Funds from Dedicated Collections

Expenses and Refunds, 

Inspection and Grading 

of Farm Products

Funds for 

Strengthening Markets, 

Income, and Supply

Agricultural 

Quarantine Inspection 

User Fee Account

Acquisition of 

Lands to Complete 

Land Exchanges

Cooperative 

Work

Land 

Acquisition

National 

Grasslands 

Receipts

National 

Forest Fund 

Receipts

National Parks and 

Public Land Legacy 

Restoration Fund

BALANCE SHEET

Intragovernmental

Fund Balance with Treasury $ 118 $ 904 $ 374 $ 45 $ 397 $ 271 $ 285 $ 182 $ 15

Investments, Net — — — — — — — — —

Accounts Receivable, Net — 1 — — — — — — 431

Advances and Prepayments — — — — — — — — 2

Total Intragovernmental Assets 118 905 374 45 397 271 285 182 448

Other than Intragovernmental

Accounts Receivable, Net 26 — 92 — — — — 6 —

General Property, Plant, and Equipment, Net — — 3 46 8 41 — — 5

Advances and Prepayments — — — — — — — — —

Investments, Net — — — — — — — — —

Total Other than Intragovernmental 26 — 95 46 8 41 — 6 5

 Total Assets 144 905 469 91 405 312 285 188 453

Intragovernmental

Accounts Payable — — — — — — — — —

Other Liabilities 10 — 2 — — — — — —

Total Intragovernmental Liabilities 10 — 2 — — — — — —

Other than Intragovernmental

Accounts Payable — 6 1 — 2 — — — 2

Federal Employee Benefits Payable 51 — — — — — — — —

Advances From Others and Deferred Revenue — — 22 — 67 — — — —

Other Liabilities 6 70 6 — 1 — 74 — 1

Total Other than Intragovernmental 57 76 29 — 70 — 74 — 3

 Total Liabilities 67 76 31 — 70 — 74 — 3

Unexpended Appropriations — — — — — — — — 446

Cumulative Results of Operations 76 828 438 92 335 311 210 188 4

 Total Liabilities and Net Position 143 904 469 92 405 311 284 188 453

STATEMENT OF NET COST

Gross Program Costs 227 1,246 244 4 79 36 92 — 100

Less Earned Revenues 198 6 658 1 91 — 55 (5) —

Net Cost of Operations 29 1,240 (414) 3 (12) 36 37 5 100

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

 Beginning Balance — — — — — — — — 265

 Appropriations Received — — — — — — — — —

 Appropriations Transferred In/Out — — — — — — — — 285

 Appropriations Used — — — — — — — — (104)

Total Unexpended Appropriations — — — — — — — — 446

Cumulative Results of Operations:

 Beginning Balances 75 870 261 95 323 226 134 182 —

 Appropriations Used — — — — — — — — 104

 Other than Intragovernmental Non-exchange Revenue:

 Miscellaneous Taxes and Receipts — — — — — — — — —

 Total Other than Intragovernmental Non-exchange Revenue — — — — — — — — —

 Intragovernmental Non-exchange Revenue — — — — — — 331 26 —

 Donations and Forfeitures of Cash & Property — — — — — — — — —

 Transfers-In/out Without Reimbursement — 1,198 (236) — — 122 — — —

 Imputed Financing 30 — — — — — — — —

 Other — — — — — (1) (218) (15) —

Net Cost of Operations (29) (1,240) 413 (3) 12 (36) (37) (5) (100)

Net Change in Cumulative Results of Operations 1 (42) 177 (3) 12 85 76 6 4

Cumulative Results of Operations 76 828 438 92 335 311 210 188 4

Net Position, End of Period $ 76 $ 828 $ 438 $ 92 $ 335 $ 311 $ 210 $ 188 $ 450
USDA | 2022 Agency Financial Report 123

FS NIFA Other Funds 

from 

Dedicated 

Collections

Total Funds 

from 

Dedicated 

Collections

Funds from Dedicated Collections

Payments to 

States, National 

Forests Fund

Recreation Fee 

Demonstration 

Program

Reforestation 

Trust Fund

Restoration of 

Forest Lands and 

Improvements

State and 

Private 

Forestry

Stewardship 

Contracting 

Product Sales

Timber 

Salvage 

Sales

Native American 

Institutions 

Endowment Fund

BALANCE SHEET

Intragovernmental

Fund Balance with Treasury $ 126 $ 184 $ 232 $ 250 $ 277 $ 93 $ 94 $ 13 $ 300 $ 4,160

Investments, Net — — — — — — — 263 6 269

Accounts Receivable, Net — — — — — — — — — 432

Advances and Prepayments — — — — — — — — — 2

Total Intragovernmental Assets 126 184 232 250 277 93 94 276 306 4,863

Other than Intragovernmental

Accounts Receivable, Net — 2 — 5 — 28 — — 5 164

General Property, Plant, and Equipment, Net 2 1 — 1 — — 1 — 4 112

Advances and Prepayments — — — — 7 — — — — 7

Investments, Net — — — — — — — — 3 3

Total Other than Intragovernmental 2 3 — 6 7 28 1 — 12 286

 Total Assets 128 187 232 256 284 121 95 276 318 5,149

Intragovernmental

Accounts Payable — — — — — — — — — —

Other Liabilities — — — — — — — — 1 13

Total Intragovernmental Liabilities — — — — — — — — 1 13

Other than Intragovernmental

Accounts Payable — 1 1 — — — — — 1 14

Federal Employee Benefits Payable — — — — — — — — — 51

Advances From Others and Deferred Revenue — — — — — — — — 14 103

Other Liabilities 249 1 — — 5 5 1 — 10 429

Total Other than Intragovernmental 249 2 1 — 5 5 1 — 25 597

 Total Liabilities 249 2 1 — 5 5 1 — 26 610

Unexpended Appropriations — — — — — — — 214 1 661

Cumulative Results of Operations (121) 186 232 257 280 116 95 61 290 3,878

 Total Liabilities and Net Position 128 188 233 257 285 121 96 275 317 5,149

STATEMENT OF NET COST

Gross Program Costs 319 100 63 16 53 34 25 6 152 2,796

Less Earned Revenues 149 132 — — — 43 33 5 160 1,526

Net Cost of Operations 170 (32) 63 16 53 (9) (8) 1 (8) 1,270

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

 Beginning Balance — — — — — — — 202 1 468

 Appropriations Received — — — — — — — 12 — 12

 Appropriations Transferred In/Out — — — — — — — — — 285

 Appropriations Used — — — — — — — — — (104)

Total Unexpended Appropriations — — — — — — — 214 1 661

Cumulative Results of Operations:

 Beginning Balances 48 154 33 268 249 107 87 62 299 3,473

 Appropriations Used — — — — — — — — — 104

 Other than Intragovernmental Non-exchange Revenue:

 Miscellaneous Taxes and Receipts — — — 1 — — — — — 1

 Total Other than Intragovernmental Non-exchange Revenue — — — 1 — — — — — 1

 Intragovernmental Non-exchange Revenue — — 262 3 — — — — — 622

 Donations and Forfeitures of Cash & Property — — — — — — — — 1 1

 Transfers-In/out Without Reimbursement — — — 1 84 — — — (18) 1,151

 Imputed Financing — — — — — — — — — 30

 Other — — — — — — — — — (234)

Net Cost of Operations (169) 32 (63) (16) (53) 9 8 (1) 8 (1,270)

Net Change in Cumulative Results of Operations (169) 32 199 (11) 31 9 8 (1) (9) 405

Cumulative Results of Operations (121) 186 232 257 280 116 95 61 290 3,878

Net Position, End of Period $ (121) $ 186 $ 232 $ 257 $ 280 $ 116 $ 95 $ 275 $ 291 $ 4,539
124 Section II | Financial Information

FY 2021 AMS AMS APHIS FS

Funds from Dedicated Collections

Expenses and Refunds, 

Inspection and Grading 

of Farm Products

Funds for 

Strengthening Markets, 

Income, and Supply

Agricultural 

Quarantine Inspection 

User Fee Account

Acquisition of 

Lands to Complete 

Land Exchanges

Cooperative 

Work

Land 

Acquisition

National 

Grasslands 

Receipts

National 

Forest Fund 

Receipts

National Parks and 

Public Land Legacy 

Restoration Fund

BALANCE SHEET

Intragovernmental

Fund Balance with Treasury $ 127 $ 943 $ 247 $ 45 $ 380 $ 185 $ 169 $ 174 $ 17

Investments, Net — — — — — — — — —

Accounts Receivable, Net — 1 — — — — — — 250

Total Intragovernmental Assets 127 944 247 45 380 185 169 174 267

Other than Intragovernmental

Accounts Receivable, Net 21 — 20 1 — — — 8 —

General Property, Plant, and Equipment, Net — — 3 48 9 42 — — —

Advances and Prepayments — — — — — — — — —

Investments, Net — — — — — — — — —

Total Other than Intragovernmental 21 — 23 49 9 42 — 8 —

Total Assets 148 944 270 94 389 227 169 182 267

Intragovernmental

Accounts Payable 5 — 1 — — — — — —

Other Liabilities 8 — 2 — — — — — —

Total Intragovernmental Liabilities 13 — 3 — — — — — —

Other than Intragovernmental

Accounts Payable 1 9 — — 1 — — — 2

Federal Employee Benefits Payable 52 — — — — — — — —

Advances From Others and Deferred Revenue — — — — 62 — — — —

Other Liabilities 6 65 6 — 2 — 34 — —

Total Other than Intragovernmental 59 74 6 — 65 — 34 — 2

Total Liabilities 72 74 9 — 65 — 34 — 2

Unexpended Appropriations — — — — — — — — 265

Cumulative Results of Operations 76 870 261 94 324 227 135 182 —

Total Liabilities and Net Position 148 944 270 94 389 227 169 182 267

STATEMENT OF NET COST

Gross Program Costs 243 1,481 242 4 95 67 38 — 20

Less Earned Revenues 194 8 312 10 110 — 19 32 —

Net Cost of Operations 49 1,473 (70) (6) (15) 67 19 (32) 20

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — — — — — — — — —

Appropriations Received — — — — — — — — —

 Appropriations Transferred In/Out — — — — — — — — 285

 Appropriations Used — — — — — — — — (20)

Total Unexpended Appropriations — — — — — — — — 265

Cumulative Results of Operations:

Beginning Balances 61 1,203 191 90 308 175 56 147 —

 Appropriations Used — — — — — — — — 20

 Other than Intragovernmental Non-exchange Revenue:

 Miscellaneous Taxes and Receipts — — — — — — — — —

 Total Other than Intragovernmental Non-exchange Revenue — — — — — — — — —

Intragovernmental Non-exchange Revenue — — — — — — 183 15 —

Donations and Forfeitures of Cash & Property — — — — — — — — —

Transfers-In/out Without Reimbursement — 1,140 — (1) — 118 — 1 —

Imputed Financing 63 — — — — — — — —

Other — — — — — — (86) (13) —

Net Cost of Operations (49) (1,473) 70 6 15 (67) (19) 32 (20)

Net Change in Cumulative Results of Operations 14 (333) 70 5 15 51 78 35 —

Cumulative Results of Operations 75 870 261 95 323 226 134 182 —

Net Position, End of Period $ 75 $ 870 $ 261 $ 95 $ 323 $ 226 $ 134 $ 182 $ 265
USDA | 2022 Agency Financial Report 125

FS NIFA

Other Funds 

from Dedicated 

Collections

Total Funds 

from Dedicated 

Collections

Funds from Dedicated Collections

Payments to 

States, National 

Forests Fund

Recreation Fee 

Demonstration 

Program

Restoration of 

Forest Lands and 

Improvements

State and 

Private Forestry

Stewardship 

Contracting 

Product Sales

Timber 

Salvage Sales

Native American 

Institutions 

Endowment Fund

BALANCE SHEET

Intragovernmental

Fund Balance with Treasury $ 111 $ 153 $ 265 $ 246 $ 83 $ 87 $ 14 $ 344 $ 3,590

Investments, Net — — — — — — 251 6 257

Accounts Receivable, Net — — — — — — — — 251

Total Intragovernmental Assets 111 153 265 246 83 87 265 350 4,098

Other than Intragovernmental

Accounts Receivable, Net — 2 — — 29 — — 6 87

General Property, Plant, and Equipment, Net 2 1 1 — — 1 — 4 111

Advances and Prepayments — — 1 10 — — — — 11

Investments, Net — — — — — — — 3 3

Total Other than Intragovernmental 2 3 2 10 29 1 — 13 212

Total Assets 113 156 267 256 112 88 265 363 4,310

Intragovernmental

Accounts Payable — — — — — — — — 6

Other Liabilities — — — — — — — 1 11

Total Intragovernmental Liabilities — — — — — — — 1 17

Other than Intragovernmental

Accounts Payable — 1 — — — — — 1 15

Federal Employee Benefits Payable — — — — — — — — 52

Advances From Others and Deferred Revenue — — — — — — — 18 80

Other Liabilities 65 2 — 8 5 1 — 11 205

Total Other than Intragovernmental 65 3 — 8 5 1 — 30 352

Total Liabilities 65 3 — 8 5 1 — 31 369

Unexpended Appropriations — — — — — — 202 1 468

Cumulative Results of Operations 48 153 267 248 107 87 63 331 3,473

Total Liabilities and Net Position 113 156 267 256 112 88 265 363 4,310

STATEMENT OF NET COST

Gross Program Costs (88) 97 23 63 32 27 6 170 2,520

Less Earned Revenues 99 118 — — 46 35 5 162 1,150

Net Cost of Operations (187) (21) 23 63 (14) (8) 1 8 1,370

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — — — — — — 190 1 191

Appropriations Received — — — — — — 12 — 12

 Appropriations Transferred In/Out — — — — — — — — 285

 Appropriations Used — — — — — — — — (20)

Total Unexpended Appropriations — — — — — — 202 1 468

Cumulative Results of Operations:

Beginning Balances (139) 133 289 223 93 79 63 311 3,283

Appropriations Used — — — — — — — — 20

Other than Intragovernmental Non-exchange Revenue: 

Miscellaneous Taxes and Receipts — — 1 — — — — — 1

Total Other than Intragovernmental Non-exchange Revenue — — 1 — — — — — 1

Intragovernmental Non-exchange Revenue — — 1 — — — — 30 229

Donations and Forfeitures of Cash & Property — — — — — — — 1 1

Transfers-In/out Without Reimbursement — — — 89 — — — (2) 1,345

Imputed Financing — — — — — — — — 63

Other — — — — — — — — (99)

Net Cost of Operations 187 21 (23) (63) 14 8 (1) (8) (1,370)

Net Change in Cumulative Results of Operations 187 21 (21) 26 14 8 (1) 21 190

Cumulative Results of Operations 48 154 268 249 107 87 62 332 3,473

Net Position, End of Period $ 48 $ 154 $ 268 $ 249 $ 107 $ 87 $ 264 $ 333 $ 3,941
126 Section II | Financial Information

Note Disclosures Related to the Statement of Net Cost

NOTE 20: Suborganization Program Costs

FY 2022 FPAC Business 

Center FSA CCC RMA NRCS FNS FSIS AMS APHIS FS

Farm Production and Conservation:

Gross Costs $ 333 $ 8,246 $ 8,522 $ 17,399 $ 4,311 $ — $ — $ — $ — $ —

Less: Earned Revenue 4 422 181 4,302 58 — — — — —

Net Costs 329 7,824 8,341 13,097 4,253 — — — — —

Food, Nutrition, and Consumer 

Services:

Gross Costs — — — — — 193,675 — — — —

Less: Earned Revenue — — — — — 95 — — — —

Net Costs — — — — — 193,580 — — — —

Food Safety:

Gross Costs — — — — — — 1,456 — — —

Less: Earned Revenue — — — — — — 248 — — —

Net Costs — — — — — — 1,208 — — —

Marketing and Regulatory Programs:

Gross Costs — — — — — — — 2,861 2,228 —

Less: Earned Revenue — — — — — — — 332 928 —

Net Costs — — — — — — — 2,529 1,300 —

Natural Resources and Environment:

Gross Costs — — — — — — — — — 9,305

Less: Earned Revenue — — — — — — — — — 797

Net Costs — — — — — — — — — 8,508

Rural Development:

Gross Costs — — — — — — — — — —

Less: Earned Revenue — — — — — — — — — —

Net Costs — — — — — — — — — —

Research, Education, and Economics:

Gross Costs — — — — — — — — — —

Less: Earned Revenue — — — — — — — — — —

Net Costs — — — — — — — — — —

Trade and Foreign Agricultural Affairs:

Gross Costs — — — — — — — — — —

Less: Earned Revenue — — — — — — — — — —

Net Costs — — — — — — — — — —

Staff Offices:

Gross Costs — — — — — — — — — —

Less: Earned Revenue — — — — — — — — — —

Net Costs — — — — — — — — — —

Total Gross Costs 333 8,246 8,522 17,399 4,311 193,675 1,456 2,861 2,228 9,305

Less: Total Earned Revenue 4 422 181 4,302 58 95 248 332 928 797

Net Cost of Operations $ 329 $ 7,824 $ 8,341 $ 13,097 $ 4,253 $ 193,580 $ 1,208 $ 2,529 $ 1,300 $ 8,508
USDA | 2022 Agency Financial Report 127

FY 2022

RD ARS NASS NIFA ERS FAS Staff Offices

Combined 

Total

Intra-entity 

Eliminations

Consolidated 

Total

Farm Production and Conservation:

Gross Costs $ — $ — $ — $ — $ — $ — $ — $ 38,811 $ (1,805) $ 37,006

Less: Earned Revenue — — — — — — — 4,967 (34) 4,933

Net Costs — — — — — — — 33,844 (1,771) 32,073

Food, Nutrition, and Consumer Services:

Gross Costs — — — — — — — 193,675 (1,211) 192,464

Less: Earned Revenue — — — — — — — 95 (1) 94

Net Costs — — — — — — — 193,580 (1,210) 192,370

Food Safety:

Gross Costs — — — — — — — 1,456 (82) 1,374

Less: Earned Revenue — — — — — — — 248 (2) 246

Net Costs — — — — — — — 1,208 (80) 1,128

Marketing and Regulatory Programs:

Gross Costs — — — — — — — 5,089 (196) 4,893

Less: Earned Revenue — — — — — — — 1,260 (98) 1,162

Net Costs — — — — — — — 3,829 (98) 3,731

Natural Resources and Environment:

Gross Costs — — — — — — — 9,305 (229) 9,076

Less: Earned Revenue — — — — — — — 797 (12) 785

Net Costs — — — — — — — 8,508 (217) 8,291

Rural Development:

Gross Costs 4,904 — — — — — — 4,904 (90) 4,814

Less: Earned Revenue 3,227 — — — — — — 3,227 (10) 3,217

Net Costs 1,677 — — — — — — 1,677 (80) 1,597

Research, Education, and Economics:

Gross Costs — 1,751 236 1,624 93 — — 3,704 (209) 3,495

Less: Earned Revenue — 174 19 32 3 — — 228 (146) 82

Net Costs — 1,577 217 1,592 90 — — 3,476 (63) 3,413

Trade and Foreign Agricultural Affairs:

Gross Costs — — — — — 488 — 488 (21) 467

Less: Earned Revenue — — — — — 79 — 79 (59) 20

Net Costs — — — — — 409 — 409 38 447

Staff Offices:

Gross Costs — — — — — — 1,980 1,980 (159) 1,821

Less: Earned Revenue — — — — — — 1,439 1,439 (1,196) 243

Net Costs — — — — — — 541 541 1,037 1,578

Total Gross Costs 4,904 1,751 236 1,624 93 488 1,980 259,412 (4,002) 255,410

Less: Total Earned Revenue 3,227 174 19 32 3 79 1,439 12,340 (1,558) 10,782

Net Cost of Operations $ 1,677 $ 1,577 $ 217 $ 1,592 $ 90 $ 409 $ 541 $ 247,072 $ (2,444) $ 244,628
128 Section II | Financial Information

FY 2021 FPAC Business 

Center FSA CCC RMA NRCS FNS FSIS AMS APHIS FS

Farm Production and Conservation:

Gross Costs $ 331 $ 25,231 $ 10,711 $ 15,775 $ 4,248 $ — $ — $ — $ — $ — 

Less: Earned Revenue 4 439 327 3,656 49 — — — — — 

Net Costs 327 24,792 10,384 12,119 4,199 — — — — — 

Food, Nutrition, and Consumer 

Services:

Gross Costs — — — — — 164,785 — — — — 

Less: Earned Revenue — — — — — 68 — — — — 

Net Costs — — — — — 164,717 — — — — 

Food Safety:

Gross Costs — — — — — — 1,425 — — — 

Less: Earned Revenue — — — — — — 269 — — — 

Net Costs — — — — — — 1,156 — — — 

Marketing and Regulatory Programs:

Gross Costs — — — — — — — 5,046 1,767 — 

Less: Earned Revenue — — — — — — — 307 592 — 

Net Costs — — — — — — — 4,739 1,175 — 

Natural Resources and Environment:

Gross Costs — — — — — — — — — 8,492

Less: Earned Revenue — — — — — — — — — 778

Net Costs — — — — — — — — — 7,714

Rural Development:

Gross Costs — — — — — — — — — — 

Less: Earned Revenue — — — — — — — — — — 

Net Costs — — — — — — — — — — 

Research, Education, and Economics:

Gross Costs — — — — — — — — — — 

Less: Earned Revenue — — — — — — — — — — 

Net Costs — — — — — — — — — — 

Trade and Foreign Agricultural Affairs:

Gross Costs — — — — — — — — — — 

Less: Earned Revenue — — — — — — — — — — 

Net Costs — — — — — — — — — — 

Staff Offices:

Gross Costs — — — — — — — — — — 

Less: Earned Revenue — — — — — — — — — — 

Net Costs — — — — — — — — — — 

Total Gross Costs 331 25,231 10,711 15,775 4,248 164,785 1,425 5,046 1,767 8,492

Less: Total Earned Revenue 4 439 327 3,656 49 68 269 307 592 778

Net Cost of Operations $ 327 $ 24,792 $ 10,384 $ 12,119 $ 4,199 $ 164,717 $ 1,156 $ 4,739 $ 1,175 $ 7,714
USDA | 2022 Agency Financial Report 129

FY 2021

RD ARS NASS NIFA ERS FAS Staff Offices

Combined 

Total

Intra-entity 

Eliminations

Consolidated 

Total

Farm Production and Conservation:

Gross Costs $ — $ — $ — $ — $ — $ — $ — $ 56,296 $ (1,494) $ 54,802

Less: Earned Revenue — — — — — — — 4,475 (26) 4,449

Net Costs — — — — — — — 51,821 (1,468) 50,353

Food, Nutrition, and Consumer Services:

Gross Costs — — — — — — — 164,785 (1,531) 163,254

Less: Earned Revenue — — — — — — — 68 (3) 65

Net Costs — — — — — — — 164,717 (1,528) 163,189

Food Safety:

Gross Costs — — — — — — — 1,425 (55) 1,370

Less: Earned Revenue — — — — — — — 269 (7) 262

Net Costs — — — — — — — 1,156 (48) 1,108

Marketing and Regulatory Programs:

Gross Costs — — — — — — — 6,813 (173) 6,640

Less: Earned Revenue — — — — — — — 899 (87) 812

Net Costs — — — — — — — 5,914 (86) 5,828

Natural Resources and Environment:

Gross Costs — — — — — — — 8,492 (214) 8,278

Less: Earned Revenue — — — — — — — 778 (10) 768

Net Costs — — — — — — — 7,714 (204) 7,510

Rural Development:

Gross Costs 4,602 — — — — — — 4,602 (85) 4,517

Less: Earned Revenue 3,300 — — — — — — 3,300 (10) 3,290

Net Costs 1,302 — — — — — — 1,302 (75) 1,227

Research, Education, and Economics:

Gross Costs — 1,625 214 1,445 88 — — 3,372 (197) 3,175

Less: Earned Revenue — 150 26 38 6 — — 220 (115) 105

Net Costs — 1,475 188 1,407 82 — — 3,152 (82) 3,070

Trade and Foreign Agricultural Affairs:

Gross Costs — — — — — 496 — 496 (21) 475

Less: Earned Revenue — — — — — 82 — 82 (50) 32

Net Costs — — — — — 414 — 414 29 443

Staff Offices:

Gross Costs — — — — — — 1,810 1,810 (149) 1,661

Less: Earned Revenue — — — — — — 1,353 1,353 (1,110) 243

Net Costs — — — — — — 457 457 961 1,418

Total Gross Costs 4,602 1,625 214 1,445 88 496 1,810 248,091 (3,919) 244,172

Less: Total Earned Revenue 3,300 150 26 38 6 82 1,353 11,444 (1,418) 10,026

Net Cost of Operations $ 1,302 $ 1,475 $ 188 $ 1,407 $ 82 $ 414 $ 457 $ 236,647 $ (2,501) $ 234,146
130 Section II | Financial Information

Note Disclosures Related to the Statement of Budgetary Resources

NOTE 21: Statement of Budgetary Resources

Adjustments to Prior Year's Ending Unobligated Balance Reported on Line 1020 of the 

SF-133

CCC and RD made adjustments of $17 million and $4 million, respectively to the Unobligated Balance 

Brought Forward, October 1 that will be reported on line 1020 of the SF-133, Report on Budget 

Execution and Budgetary Resources.

Terms of Borrowing Authority Used

The Secretary of Agriculture has the authority to make and issue notes to the Secretary of the Treasury 

for the purpose of discharging obligations for RD’s insurance funds and CCC’s non-reimbursed 

realized losses and debt related to foreign assistance programs. The permanent indefinite borrowing 

authority includes both interest bearing and non-interest bearing notes. These notes are drawn upon 

daily when disbursements exceed deposits. Notes payable under the permanent indefinite borrowing 

authority have a term of one year. On January 1 of each year, USDA refinances its outstanding 

borrowings, including accrued interest, at the January borrowing rate.

In addition, USDA has permanent indefinite borrowing authority for the foreign assistance and export 

credit programs to finance disbursements on post-credit reform, direct credit obligations, and credit 

guarantees. In accordance with the Federal Credit Reform Act of 1990, as amended, USDA borrows 

from Treasury on October 1, for the entire fiscal year, based on annual estimates of the difference 

between the amount appropriated (subsidy) and the amount to be disbursed to the borrower. 

Repayment under this agreement may be, in whole or in part, prior to maturity by paying the principal 

amount of the borrowings plus accrued interest to the date of repayment. Interest is paid on these 

borrowings based on weighted average interest rates for the cohort, to which the borrowings are 

associated. Interest is earned on the daily balance of uninvested funds in the credit reform financing 

funds maintained at Treasury. The interest income is used to reduce interest expense on the 

underlying borrowings. 

USDA has authority to borrow from FFB in the form of Certificates of Beneficial Ownership (CBOs) 

or loans executed directly between the borrower and FFB with an unconditional USDA repayment 

guarantee. CBOs outstanding with FFB are generally secured by unpaid loan principal balances. CBOs 

outstanding are related to pre-credit reform loans and no longer used for program financing. 

FFB CBOs are repaid as they mature and are not related to any particular group of loans. Borrowings 

made to finance loans directly between the borrower and FFB mature and are repaid as the related 

group of loans become due. Interest rates on the related group of loans are equal to interest rates on 

FFB borrowings, except in those situations where an FFB funded loan is restructured and the terms of 

the loan are modified. Prepayments can be made on Treasury borrowings without a penalty; however, 

they cannot be made on FFB CBOs, without a penalty. 
USDA | 2022 Agency Financial Report 131

Funds may also be borrowed from private lending agencies and others. USDA reserves a sufficient 

amount of its borrowing authority to purchase, at any time, all notes and other obligations evidencing 

loans made by agencies and others. All bonds, notes, debentures, and similar obligations issued by the 

Department are subject to approval by the Secretary of the Treasury. Reservation of borrowing 

authority for these purposes has not been required for many years. 

Available Borrowing Authority, End of Period

Available borrowing authority at September 30, 2022 and 2021 was $47,175 million and 

$44,412 million, respectively.

Undelivered Orders at the End of the Period

FY 2022 Federal Non-Federal FY 2021 Federal Non-Federal

Paid $ 102 $ 493 Paid $ 85 $ 594 

Unpaid 4,287 83,055 Unpaid 3,978 84,495 

Total $ 4,389 $ 83,548 Total $ 4,063 $ 85,089 

Permanent Indefinite Appropriations

USDA has permanent indefinite appropriations available to fund (1) subsidy costs incurred under credit 

reform programs, (2) certain costs of the crop insurance program, (3) certain commodity program costs, 

(4) certain costs associated with FS programs, and (5) dairy indemnity payment program.

The permanent indefinite appropriations for credit reform are mainly available to finance any 

disbursements incurred under the liquidating accounts. These appropriations become available pursuant 

to standing provisions of law without further action by Congress after transmittal of the budget for the 

year involved. They are treated as permanent the first year they become available, as well as in 

succeeding years. However, they are not stated as specific amounts but are determined by specified 

variable factors, such as cash needs for liquidating accounts, and information about the actual 

performance of a cohort or estimated changes in future cash flows of the cohort in the program accounts.

The permanent indefinite appropriation for the crop insurance program is used to cover premium 

subsidy, delivery expenses, losses in excess of premiums, and research and delivery costs. 

The permanent indefinite appropriation for commodity program costs is used to encourage the 

exportation of agricultural commodities and products, to encourage domestic consumption of agricultural 

products by diverting them, and to reestablish farmers’ purchasing power by making payments in 

connection with the normal production of any agricultural commodity for domestic consumption.
132 Section II | Financial Information

FS has multiple permanent indefinite appropriations which are used to make improvements to national 

forests and grasslands. These include Payments to Counties (National Grasslands), Restoration of Forest 

Lands and Improvements, Reforestation Trust Fund, Recreation Fee Demonstration Program, Brush 

Disposal, Timber Roads, Timber Salvage Sales, and Maintenance of Quarters. All permanent indefinite 

appropriations are funded by receipts made available by law and are available until expended. 

The FSA has a permanent indefinite appropriation for the Dairy Indemnity Payment Program to 

provide payments to dairy producers when a public regulatory agency directs them to remove their raw 

milk from the commercial market because it has been contaminated by pesticides and other residues. 

Legal Arrangements Affecting Use of Unobligated Balances

Any information about legal arrangements affecting the use of the unobligated balance of budget 

authority is specifically stated by program and fiscal year in the appropriation language or in the 

alternative provisions section at the end of the appropriations act. 

Explanation of Differences Between the SBR and the Budget of the U.S. Government

The differences between the FY 2021 Statement of Budgetary Resources and the FY 2021 actual 

numbers presented in the FY 2023 Budget of the United States Government (Budget) are 

summarized below. 

FY 2021

Item Budgetary 

Resources

New Obligations & 

Upward Adjustments 

(Total)

Distributed 

Offsetting 

Receipts Net Outlays

Combined Statement of Budgetary Resources $ 424,382 $ 297,939 $ (4,249) $ 243,492

Reconciling Items:

Expired accounts (37,948) (4,218) — —

CCC and USAID Timing Difference (10) (4) — —

FSA Modification (82) (82) — (82)

Milk Market Orders Fund 75 75 — —

Rounding (7) (4) — (2)

Budget of the United States Government $ 386,410 $ 293,706 $ (4,249) $ 243,408

A comparison between the FY 2022 SBR and the FY 2022 actual numbers presented in the FY 2024 

Budget cannot be performed as the FY 2024 Budget is not yet available. The Budget with the actual 

amounts for the current year (i.e., FY 2022) will be available at a later date on the President's OMB 

Budget website. 
USDA | 2022 Agency Financial Report 133

Note Disclosures Related to the Statement of Custodial Activity

NOTE 22: Incidental Custodial Collections

Custodial collections represent collections on land leases for resource extraction, National Forest Fund 

receipts from the sale of timber and other forest products, miscellaneous general fund receipts such as 

collections on accounts receivable related to canceled year appropriations, civil monetary penalties and 

interest, and commercial fines and penalties. Custodial collection activities are considered immaterial 

and incidental to the mission of the Department.

Item FY 2022 FY 2021

Total Custodial Revenue:

Sources of Cash Collections:

Miscellaneous $ 199 $ 133

Total Cash Collections 199 133

Accrual Adjustments 128 50

Total Custodial Revenue 327 183

Disposition of Collections:

Transferred to Others:

Treasury (321) (84)

(Increase )/Decrease in Amounts Yet to be Transferred (6) (99)

Total Disposition of Collections (327) (183)

Net Custodial Activity $ — $ —

Note Disclosures Not Pertaining to a Specific Statement

NOTE 23: Fiduciary Activities

The department is responsible for one fiduciary fund. The Rural Housing Insurance Fund was 

established by P.L 89-117 pursuant to section 517 of title V of the Housing Act of 1949, which 

authorized RD to collect escrow payments on behalf of new and existing Single Family Housing 

borrowers. Other fiduciary activities by RD include but are not limited to collections from borrowers, 

interest paid on escrow accounts, and payments to insurance agencies and taxing authorities.
134 Section II | Financial Information

Schedule of Fiduciary Activity 

For the years ended September 30, 2022 and 2021

Item Rural Housing Insurance Fund FY 2022 Rural Housing Insurance Fund FY 2021

Fiduciary Net Assets, Beginning of Year $ 117 $ 115

Contributions 456 476

Disbursements To and On Behalf of Beneficiaries (474) (474)

Increases/(Decrease) in Fiduciary Net Assets (18) 2

Fiduciary Net Assets, End of Year $ 99 $ 117

Fiduciary Net Assets 

As of September 30, 2022 and 2021

Item Rural Housing Insurance Fund FY 2022 Rural Housing Insurance Fund FY 2021

Fiduciary Assets:

Cash and Cash Equivalents $ 99 $ 117

Total Fiduciary Net Assets $ 99 $ 117

NOTE 24: Reconciliation of Net Cost to Net Outlays 

(Budget to Accrual Reconciliation)

Budgetary and financial accounting information differ. Budgetary accounting is used for planning and 

control purposes and relates to both the receipt and use of cash, as well as reporting the federal deficit. 

Financial accounting is intended to provide a picture of the government’s financial operations and 

financial position so it presents information on an accrual basis. The accrual basis includes information 

about costs arising from the consumption of assets and the incurrence of liabilities. The reconciliation 

of net outlays, presented on a budgetary basis, and the net cost, presented on an accrual basis, provides 

an explanation of the relationship between budgetary and financial accounting information. 

The reconciliation serves not only to identify costs paid for in the past and those that will be paid in the 

future, but also to assure integrity between budgetary and financial accounting. 

The reconciliation explains the relationship between the net cost of operations and net outlays by 

presenting (1) components of net cost that are not part of net outlays (e.g. depreciation and 

amortization expenses of assets previously capitalized, change in asset/liabilities); (2) components of 

net outlays that are not part of net cost (e.g. acquisition of capital assets); and (3) other temporary 

timing difference (e.g. prior period adjustments due to correction of errors). The analysis below 

illustrates this reconciliation by listing the key differences between net cost and net outlays. 
USDA | 2022 Agency Financial Report 135

FY 2022

Intragovernmental

Other than 

Intragovernmental Total

Net Cost $ 5,144 $ 239,484 $ 244,628

Components of Net Cost Not Part of the Budgetary Outlays:

Property, Plant and Equipment Depreciation Expense — (341) (341)

Property, Plant and Equipment Disposals and Revaluations — (8) (8)

Cost of Goods Sold — (2) (2)

Year-End Credit Reform Subsidy Accrual Reestimates 4,081 — 4,081

Exchange Revenue not Part of the SBR Outlays 102 517 619

Increase/(Decrease) in Assets:

Accounts Receivable, Net 114 1,211 1,325

Loans Receivable, Net (Non-FCRA) — 30 30

Other Assets 18 (82) (64)

(Increase)/Decrease in Liabilities

Accounts Payable 59 (167) (108)

Insurance and Guarantee Program Liabilities — (3,099) (3,099)

Environmental and Disposal Liabilities — 17 17

Benefits Due and Payable — 101 101

Federal Employee and Veteran Benefits Payable — 42 42

Other Liabilities 44 3,566 3,610

Financing Sources:

Imputed Cost (1,005) — (1,005)

Total Components of Net Operating Cost Not Part of the Budgetary Outlays: 3,413 1,785 5,198

Components of the Budget Outlays That Are Not Part of the Net Operating Cost:

Acquisition of Capital Assets 1 595 596

Acquisitions of Inventory — 6 6 

Financing Sources:

Donated Revenue — (3) (3)

Transfers Out (In) Without Reimbursements (155) — (155)

Total Components of the Budget Outlays that are not part of Net Operating Cost (154) 598 444

Miscellaneous Items:

Distributed Offsetting Receipts (175) (7) (182)

Custodial/Non-exchange revenue (360) 205 (155)

Non-Entity Activity (4,708) — (4,708)

Other Temporary Timing Differences 10 — 10

Total Other Reconciling Items (5,233) 198 (5,035)

Total Net Outlays 3,170 242,065 245,235

Budgetary Agency Outlays, Net $ 245,235

In FY 2022, significant line items include Year-End Credit Reform Subsidy Accrual Reestimates 

mainly due to RD; Increase in Accounts Receivable, Net mainly due to RMA higher reported 

premiums for certain crops and Forest Service Great American Outdoors Act; Increase in Insurance 

and Guarantee Program Liabilities mainly due to RMA higher coverage amounts resulting from higher 

crop prices, higher level of losses caused by widespread drought and excessive heat, and increased 

participation in certain insurance products; Decrease in Other Liabilities mainly due to CCC accrual 

for ARC/PLC and FSA accrual for socially disadvantage borrowers under the American Rescue Plan; 

and Non-Entity Activity mainly due to RD downward reestimates and negative subsidy. 
136 Section II | Financial Information

FY 2021

Intragovernmental

Other than 

Intragovernmental Total

Net Cost $ 4,536 $ 229,610 $ 234,146

Components of Net Cost Not Part of the Budgetary Outlays:

Property, Plant and Equipment Depreciation Expense - (368) (368)

Property, Plant and Equipment Disposals and Revaluations - 2 2

Cost of Goods Sold - (133) (133)

Year-End Credit Reform Subsidy Accrual Reestimates 3,683 - 3,683

Loan Modification Adjustment Transfers (76) - (76)

Exchange Revenue not Part of the SBR Outlays 93 240 333

Increase/(Decrease) in Assets:

Accounts Receivable, Net 287 1,484 1,771

Loans Receivable, Net (Non-FCRA) - (654) (654)

Other Assets 33 (711) (678)

(Increase)/Decrease in Liabilities

Accounts Payable 1,243 1,407 2,650

Insurance and Guarantee Program Liabilities - (6,523) (6,523)

Environmental and Disposal Liabilities - (19) (19)

Benefits Due and Payable - 4,749 4,749

Federal Employee and Veteran Benefits Payable - 6 6

Other Liabilities (60) 390 330

Financing Sources:

Imputed Cost (966) - (966)

Total Components of Net Operating Cost Not Part of the Budgetary Outlays: 4,237 (130) 4,107

Components of the Budget Outlays That Are Not Part of the Net Operating Cost:

Acquisition of Capital Assets 12 543 555

Acquisitions of Inventory - 138 138

Financing Sources:

Donated Revenue - (1) (1)

Transfers Out (In) Without Reimbursements (224) - (224)

Total Components of the Budget Outlays that are not part of Net Operating Cost (212) 680 468

Miscellaneous Items:

Distributed Offsetting Receipts (76) (5) (81)

Custodial/Non-exchange revenue (198) 85 (113)

Non-Entity Activity (3,320) - (3,320)

Other Temporary Timing Differences - 11 11

Total Other Reconciling Items (3,594) 91 (3,503)

Total Net Outlays 4,967 230,251 235,218

Budgetary Agency Outlays, Net $ 235,218

In FY 2021, significant line items include Year-End Credit Reform Subsidy Accrual Reestimates mainly 

due to RD; Increase in Accounts Receivable, Net mainly due to RMA higher reported premiums for 

certain crops and Forest Service Great American Outdoors Act; Decrease in Accounts Payable mainly 

due to RD subsidy payable to the financing account and FSA Coronavirus Food Assistance with no new 

funding available; Increase in Insurance and Guarantee Program Liabilities mainly due to RMA higher 

coverage amount, loss ratio, underwriting gain, and unearned premium; Decrease in Benefits Due and 

Payable mainly due to the Food and Nutrition Service (FNS) State partners in Child Nutrition (CN) and 

Supplemental Nutrition Assistance Program (SNAP) more fully utilizing available resources; and NonEntity Activity mainly due to RD Offset to Non-Entity Collections.
USDA | 2022 Agency Financial Report 137

NOTE 25: Disclosure Entities and Related Parties 

Disclosure Entities

Research and Promotion Boards

Research and Promotion (“checkoff”) programs are authorized by the Commodity Promotion, 

Research, and Information Act of 1996 and various Acts for specific commodities. Research and 

Promotion Board members are appointed by the Secretary. AMS is responsible for administrative 

oversight of Research and Promotion Programs to ensure fiscal accountability and program integrity. 

AMS also conducts rulemaking and oversees the activities of Fruit, Vegetable, and Specialty Crop 

Marketing Order Commodity Boards, Councils, or Committees to ensure compliance with all legal and 

regulatory requirements. Marketing orders and agreements are authorized by the Agricultural 

Marketing Agreement Act of 1937. 

These programs are not Federally funded. In FY 2022, the non-Federal costs of oversight for the 

Research and Promotion activities, including salaries and expenses, travel, and rent for office space 

were estimated to be $6.6 million. Industry boards collect and manage assessments from industry 

members to conduct program activities. 

Foundation for Food and Agricultural Research (FFAR)

The Secretary of Agriculture (Secretary) was authorized by the Agricultural Act of 2014 (Act), to 

establish a nonprofit corporation known as the Foundation for Food and Agriculture Research. FFAR 

was established by the Secretary on July 23, 2014. To establish the funding, on the date of the 

enactment of this Act, the Secretary transferred $200 million of the Commodity Credit Corporation 

funds, to the FFAR, to remain available until expended under the conditions stipulated. On the date on 

which the strategic plan was submitted, the Secretary transferred $185 million of the Commodity 

Credit Corporation Funds, to the FFAR, to remain available until expended. The FFAR may use the 

funds made available to carry out the purposes of the FFAR only to the extent that the FFAR secures an 

equal amount of non-federal matching funds for each expenditure. None of the funds made available 

may be used for construction. 

 The purposes of FFAR shall be (a) to advance the research mission of the USDA by supporting 

agricultural research activities focused on addressing key problems of national and international 

significance; and (b) to foster collaboration with agricultural researchers from the Federal Government, 

State (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3103)) governments, institutions of higher education (as defined in section 101 of 

the Higher Education Act of 1965 (20 U.S.C. 1001)), industry, and nonprofit organizations. The 

activities of the FFAR shall be supplemental to any other activities at USDA and shall not preempt any 

authority or responsibility of USDA under another provision of law; (c) to advance other incidental 

activities necessary to carry out and accomplish the foregoing missions enumerated. 
138 Section II | Financial Information

FFAR is managed under the direction of the Board of Directors (Board), which may exercise all such 

authority and powers of the Foundation and do all such lawful acts and things as provided by statute, 

the Articles of Incorporation, or the By-laws. The Board is composed of designated or appointed Ex 

Officio Directors (non-voting) and Appointed Directors (voting), appointed in accordance with the 

Agricultural Act or these By-Laws. The number of Appointed Directors may increase or decrease, from 

time to time, but at no time be less than fifteen and no more than twenty-one members. No employee 

of the Federal Government shall be an Appointed Director. 

The ex-officio members of the Board consist of the following:

(i) The Secretary 

(ii) The Under Secretary of Agriculture for Research, Education, and Economics 

(iii) The Administrator of the Agricultural Research Service

(iv) The Director of the National Institute of Food and Agriculture 

(v) The Director of the National Science Foundation 

The ex-officio members by majority-vote appoint 15 individuals to the Board. The Board elects from 

among the members of the Board, an individual to serve as Chair of the Board. The Board hires an 

Executive Director who shall carry out such duties and responsibilities as the Board may prescribe. 

The Executive Director shall ensure that any funds received are held in separate accounts from funds 

received from nongovernmental entities. 

To ensure integrity in the operations of the FFAR, the Board developed and enforced procedures 

relating to standards of conduct, financial disclosure statements, conflicts of interest (including recusal 

and waiver rules), audits, and any other matters determined appropriate by the Board. 

Any individual who is an officer, employee, or member of the Board is prohibited from any 

participation in deliberations by the FFAR of a matter that would directly or predictably affect any 

financial interest of— 

(i) the individual; 

(ii) a relative (as defined in section 109 of the Ethics in Government Act of 1978 

(5 U.S.C. App.109)) of that individual; or 

(iii) a business organization or other entity in which the individual has an interest, 

(iv) including an organization or other entity with which the individual is negotiating employment. 

Members of the Board may not receive compensation for service on the Board but may be reimbursed 

for travel, the reasonable cost of meals and lodging, and other necessary expenses incurred in carrying 

out the duties of the Board. 
USDA | 2022 Agency Financial Report 139

The Board of Directors designate and appoint standing committees of the Board: an Executive 

Committee, a Governance and Federal Relations Committee, a Finance, Risk and Audit Committee, a 

Development Committee, and a Scientific Programs Committee. Committees consist of at least four 

appointed Directors possessing the qualifications determined necessary by the Board and shall be 

comprised solely of Members of the Board. The Finance, Risk and Audit Committee provides annual 

audits of its financial condition to the Secretary of Agriculture and the Comptroller General of the 

United States for examination or audit.

Additional FFAR governance, financial, and audit reports can be located on the Foundation for Food & 

Agriculture Research website.

Related Party

Milk Market Orders Assessment Fund

The Secretary of Agriculture is authorized by the Agricultural Marketing Agreement Act of 1937, as 

amended under certain conditions to issue Federal milk marketing orders establishing minimum prices 

which handlers are required to pay for milk purchased from producers. There are currently 

11 Federally-sanctioned milk market orders in operation. Market administrators are appointed by the 

Secretary and are responsible for carrying out the terms of specific marketing orders. Their operating 

expenses are financed by assessments on regulated handlers and partly by deductions from producers, 

which are reported to AMS. Most of these funds are collected and deposited in checking and savings 

accounts in local banks and disbursed directly for direct disbursement by the market administrator. 

A portion of the funds collected may be invested in securities such as certificates of deposit. Expenses 

of local offices are met from an administrative fund and a marketing service fund, which are prescribed 

in each order. The administrative fund is derived from prorated handler assessments. The marketing 

service fund of the individual order disseminates market information to producers who are not 

members of a qualified cooperative. It also provides for the verification of the weights, sampling, and 

testing of milk from these producers. The cost of these services is borne by such producers. 

The maximum rates for administrative assessment and for marketing services are set forth in each 

order and adjustments below these rates are made from time to time upon recommendations by the 

market administrator and upon approval of the AMS to provide reserves at about a six-month operating 

level. Upon termination of any order, the statute provides for distributing the proceeds from net assets 

pro rata to contributing handlers or producers. 

The AMS reports this account in the President’s Budget because milk marketing administration staff 

are excepted service. Salaries, health insurance, Thrift Savings Plan (TSP) contributions and all other 

federal benefits are paid by the marketing order funds and as a result there are no costs to the Federal 

government. As a result, corresponding dollars are reported for presentation purposes only. 

In FY 2022, the non-Federal costs of administrating Federal milk marketing orders, including salaries 

and expenses, travel, and rent for office space were estimated to be $79 million. The Secretary’s 

oversight responsibilities of marketing orders by AMS is funded by the Funds for Strengthening 

Markets, Income and Supply (Section 32) account. 
140 Section II | Financial Information

NOTE 26: Coronavirus Disease 2019 (COVID-19) Activity

The tables below summarize supplemental funding for COVID-19 and its financial statement impact.

FY 2022

Account Name

Treasury 

Account 

Symbol Purpose

Budgetary 

Resources: 

Unobligated (and 

unexpired) 

Balance Carried 

Forward from 

Prior Year

New Budget 

Authority 

Rescissions/ 

Other 

Changes to 

Budgetary 

Resources

Budgetary 

Resources 

Obligated

Budgetary 

Resources: Ending 

Unobligated (and 

unexpired) 

Balance to be 

Carried Forward

Outlays, 

Net (Total)

Farm Service Agency / Commodity Credit Corporation (CCC) - 

Assistance for Socially Disadvantaged Farmers and Ranchers 12X0172 American Rescue Plan Act $ — $ — $ — $ — $ — $ (1)

CCC- Food for Peace Title II Grants (Foreign Agricultural Service) 121/22278 American Rescue Plan Act 152 — 3 (151) 4 560

FNS-Supplemental Nutrition Assistance Program (SNAP) 1223505 Consolidated Appropriations Act, 2021 — 29,300 — (25,971) 3,329 25,603

FNS-SNAP 12X3505 Consolidated Appropriations Act, 2021 5 — — (2) 3 2

FNS-SNAP 121/33505 American Rescue Plan Act 909 — 43 (445) 507 326

FNS-SNAP 121/63505 American Rescue Plan Act 25 — — — 25 —

FNS-SNAP 121/73505 American Rescue Plan Act 34 — — (11) 23 766

FNS-CAP 121/23507 American Rescue Plan Act — — 1 — 1 22

FNS-Special Supplemental Nutrition Program for Women, Infants 

and Children (WIC) 121/23510 American Rescue Plan Act — — 263 (47) 216 159

FNS-WIC 121/43510 American Rescue Plan Act 390 — — (82) 308 1

AMS - Marketing Services 12X2500 Consolidated Appropriations Act, 2021 515 — — (118) 397 33

AMS - Payments to States and Possessions 12X2501 Consolidated Appropriations Act, 2021 97 — — (97) — 6

APHIS- Salaries and Expenses 121/21600 Consolidated Appropriations Act, 2021 102 — (102) — — —

APHIS- Salaries and Expenses 12X1600 American Rescue Plan Act 300 — — (43) 257 5

APHIS- Salaries and Expenses 122/31600 Consolidated Appropriations Act, 2021 — — — — — —

Rural Development- Distance Learning, Telemedicine, and 

Broadband Program 12X1232 CARES Act — — 1 — 1 5

Rural Development- Rental Assistance Program 121/20137 American Rescue Plan Act — — — — — 63

Rural Development- Rural Community Facilities Program Account 121/31951 American Rescue Plan Act 475 — — (342) 133 52

Rural Development Rural Housing Insurance Fund Program 

Account 121/32081 American Rescue Plan Act 38 — — (3) 35 2

Rural Development Rural Cooperative Development Grants 12X1900 Consolidated Appropriations Act, 2021 3 — 1 (3) 1 11

NIFA - Farming Opportunities Training and Outreach Program; 

Farm Stress Program; Gus Schumacher Nutrition Incentive 

Program 12X0502 Consolidated Appropriations Act, 2021 18 — (1) (17) — 34

Office of the Secretary 12X0115 CARES Act 3,886 — (550) (1,884) 1,452 1,662

Office of the Secretary

12X0115

CARES Act and Consolidated 

Appropriations Act, 2021 3,298 — (384) (559) 2,355 683

Office of the Secretary 12X0115 American Rescue Plan Act 4,656 (3,600) (929) (96) 31 8

Office of the Secretary 12X0408 American Rescue Plan Act — 3,600 (1,000) (822) 1,778 25

Total $ 14,903 $ 29,300 $ (2,654) $ (30,693) $ 10,856 $ 30,027
USDA | 2022 Agency Financial Report 141

FY 2022

Account Name

Farm Service Agency / 

Commodity Credit 

Corporation (CCC) - Assistance 

for Socially Disadvantaged 

Farmers and Ranchers

CCC- Food for Peace 

Title II Grants 

(Foreign Agricultural 

Service)

FNS-Supplemental 

Nutrition 

Assistance 

Program (SNAP) FNS-SNAP FNS-SNAP FNS-SNAP FNS-SNAP

FNS-Commodity 

Assistance 

Program (CAP)

Treasury Account Symbol 12X0172 121/22278 1223505 12X3505 121/33505 121/63505 121/73505 121/23507

Purpose American Rescue Plan Act

American Rescue 

Plan Act

Consolidated 

Appropriations 

Act, 2021

Consolidated 

Appropriations 

Act, 2021

American Rescue 

Plan Act

American Rescue 

Plan Act

American Rescue 

Plan Act

American Rescue 

Plan Act

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ — $ 31 $ 3,697 $ 3 $ 781 $ 25 $ 58 $ — 

Total Intragovernmental Assets — 31 3,697 3 781 25 58 — 

Accounts Receivable, Net (Note 6) — — — — — — — — 

Inventory and Related Property, Net (Note 8) — 8 — — — — — — 

Total Assets — 39 3,697 3 781 25 58 — 

Accounts Payable — 1 — — — — — — 

Benefits Due and Payable — — 368 — 274 — 35 — 

Other Liabilities (Note 16, 17 & 18) — 4 — — — — — — 

Total Liabilities — 5 368 — 274 — 35 — 

Unexpended Appropriations — 26 3,329 3 507 25 23 — 

Cumulative Results of Operations — 8 — — — — — — 

Total Liabilities and Net Position — 39 3,697 3 781 25 58 — 

STATEMENT OF NET COST

Gross Program Costs (1,960) 463 25,971 2 402 — 11 21

Net Cost of Operations (Note 20) (1,960) 463 25,971 2 402 — 11 21

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — 483 — 5 909 25 34 21

Appropriations Received — — 29,300 — — — — — 

Appropriations Transferred in/out — — — — — — — — 

Other Adjustments (1,960) — — — — — — — 

Appropriations Used 1,960 (457) (25,971) (2) (402) — (11) (21)

Net Change in Unexpended Appropriations — (457) 3,329 (2) (402) — (11) (21)

Total Unexpended Appropriations Ending Balance — 26 3,329 3 507 25 23 — 

Cumulative Results of Operations:

Beginning Balance — 14 — — — — — — 

Appropriations Used (1,960) 457 25,971 2 402 — 11 21

Net Cost of Operations 1,960 (463) (25,971) (2) (402) — (11) (21)

Net Change in Cumulative Results of Operations — (6) — — — — — — 

Cumulative Results of Operations — 8 — — — — — — 

Net Position End of Period $ — $ 34 $ 3,329 $ 3 $ 507 $ 25 $ 23 $ — 
142 Section II | Financial Information

FY 2022 Continued

Account Name

FNS-Special 

Supplemental 

Nutrition Program 

for Women, Infants 

and Children (WIC) FNS-WIC

AMS-Marketing 

Services

AMS-Payments to 

States and 

Possessions

APHIS- Salaries 

and Expenses

APHIS- Salaries 

and Expenses

APHIS- Salaries 

and Expenses

Rural DevelopmentDistance Learning, 

Telemedicine, and 

Broadband Program

Treasury Account Symbol 121/23510 121/43510 12X2500 12X2501 121/21600 12X1600 122/31600 12X1232

Purpose American Rescue 

Plan Act

American Rescue 

Plan Act

Consolidated 

Appropriations Act, 

2021

Consolidated 

Appropriations Act, 

2021

Consolidated 

Appropriations 

Act, 2021

American Rescue 

Plan Act

Consolidated 

Appropriations 

Act, 2021 CARES Act

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 217 $ 389 $ 487 $ 93 $ — $ 295 $ — $ 19

Total Intragovernmental Assets 217 389 487 93 — 295 — 19

Accounts Receivable, Net (Note 6) — — — — — — — — 

Inventory and Related Property, Net (Note 8) — — — — — — — — 

Total Assets 217 389 487 93 — 295 — 19

Accounts Payable — — — — — — — — 

Benefits Due and Payable — — — — — — — — 

Other Liabilities (Note 16, 17 & 18) — 55 — — — — — — 

Total Liabilities — 55 — — — — — — 

Unexpended Appropriations 217 334 487 93 — 295 — 19

Cumulative Results of Operations — — — — — — — — 

Total Liabilities and Net Position 217 389 487 93 — 295 — 19

STATEMENT OF NET COST

Gross Program Costs (217) 56 33 6 — 5 — 5 

Net Cost of Operations (Note 20) (217) 56 33 6 — 5 — 5 

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — 390 520 99 102 300 — 24

Appropriations Received — — — — — — 250 — 

Appropriations Transferred in/out — — — — (102) — (250) — 

Other Adjustments — — — — — — — — 

Appropriations Used 217 (56) (33) (6) — (5) — (5)

Net Change in Unexpended Appropriations 217 (56) (33) (6) (102) (5) — (5)

Total Unexpended Appropriations Ending Balance 217 334 487 93 — 295 — 19

Cumulative Results of Operations:

Beginning Balance — — — — — — — — 

Appropriations Used (217) 56 33 6 — 5 — 5 

Net Cost of Operations 217 (56) (33) (6) — (5) — (5)

Net Change in Cumulative Results of Operations — — — — — — — — 

Cumulative Results of Operations — — — — — — — — 

Net Position End of Period $ 217 $ 334 $ 487 $ 93 $ — $ 295 $ — $ 19
USDA | 2022 Agency Financial Report 143

FY 2022 Continued

Account Name Rural DevelopmentRental Assistance 

Program

Rural DevelopmentRural Community 

Faculties Program 

Account

Rural Development 

Rural Housing 

Insurance Fund 

Program Account

Rural Development 

Rural Cooperative 

Development Grants 

NIFA-Farming Opportunities 

Training and Outreach 

Program; Farm Stress 

Program; Gus Schumacher 

Nutrition Incentive Program 

Office of the 

Secretary

Office of the 

Secretary

Treasury Account Symbol 121/20137 121/31951 121/32081 12X1900 12X0502 12X0115 12X0115

Purpose American Rescue Plan 

Act

American Rescue Plan 

Act

American Rescue Plan 

Act

Consolidated 

Appropriations Act, 

2021

Consolidated Appropriations 

Act, 2021 CARES Act

CARES Act and 

Consolidated 

Appropriations Act, 

2021

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 20 $ 423 $ 36 $ 24 $ 106 $ 1,676 $ 2,555

Total Intragovernmental Assets 20 423 36 24 106 1,676 2,555

Accounts Receivable, Net (Note 6) — — — — — 30 2

Inventory and Related Property, Net (Note 8) — — — — — — —

Total Assets 20 423 36 24 106 1,706 2,557

Accounts Payable — — — — — 6 2

Benefits Due and Payable — — — — — — —

Other Liabilities (Note 16, 17 & 18) 2 — — — — 29 6

Total Liabilities 2 — — — — 35 8

Unexpended Appropriations 20 423 36 24 106 310 2,547

Cumulative Results of Operations (2) — — — — 1,361 2

Total Liabilities and Net Position 20 423 36 24 106 1,706 2,557

STATEMENT OF NET COST

Gross Program Costs 65 52 2 11 34 1,682 404

Net Cost of Operations (Note 20) 65 52 2 11 34 1,682 404

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance 83 475 38 35 140 2,382 3,353

Appropriations Received — — — — — — —

Appropriations Transferred in/out — — — — — — —

Other Adjustments — — — — — (600) (400)

Appropriations Used (63) (52) (2) (11) (34) (1,472) (406)

Net Change in Unexpended Appropriations (63) (52) (2) (11) (34) (2,072) (806)

Total Unexpended Appropriations Ending Balance 20 423 36 24 106 310 2,547

Cumulative Results of Operations:

Beginning Balance — — — — — 1,571 —

Appropriations Used 63 52 2 11 34 1,472 406

Net Cost of Operations (65) (52) (2) (11) (34) (1,682) (404)

Net Change in Cumulative Results of Operations (2) — — — — (210) 2

Cumulative Results of Operations (2) — — — — 1,361 2

Net Position End of Period $ 18 $ 423 $ 36 $ 24 $ 106 $ 1,671 $ 2,549
144 Section II | Financial Information

FY 2022 Continued

Account Name Office of the 

Secretary

Office of the 

Secretary

Treasury Account Symbol 12X0115 12X0408

Purpose American Rescue Plan 

Act

American Rescue Plan 

Act Total

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 120 $ 2,575 $ 13,630

Total Intragovernmental Assets 120 2,575 13,630

Accounts Receivable, Net (Note 6) — — 32

Inventory and Related Property, Net (Note 8) — — 8

Total Assets 120 2,575 13,670

Accounts Payable — — 9

Benefits Due and Payable — — 677

Other Liabilities (Note 16, 17 & 18) — 108 204

Total Liabilities — 108 890

Unexpended Appropriations 120 2,467 11,411

Cumulative Results of Operations — — 1,369

Total Liabilities and Net Position 120 2,575 13,670

STATEMENT OF NET COST

Gross Program Costs 9 133 27,190

Net Cost of Operations (Note 20) 9 133 27,190

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance 4,658 — 14,076

Appropriations Received (3,600) 3,600 29,550

Appropriations Transferred in/out — — (352)

Other Adjustments (929) (1,000) (4,889)

Appropriations Used (9) (133) (26,974)

Net Change in Unexpended Appropriations (4,538) 2,467 (2,665)

Total Unexpended Appropriations Ending Balance 120 2,467 11,411

Cumulative Results of Operations:

Beginning Balance — — 1,585

Appropriations Used 9 133 26,974

Net Cost of Operations (9) (133) (27,190)

Net Change in Cumulative Results of Operations — — (216)

Cumulative Results of Operations — — 1,369

Net Position End of Period $ 120 $ 2,467 $ 12,780
USDA | 2022 Agency Financial Report 145

FY 2021 

Account Name

Treasury Account 

Symbol Purpose

Unobligated 

Balances from 

Prior Year 

Total 

Supplemental 

Current Year Total Obligations 

Amounts 

Remaining to be 

Obligated Total Outlays

Farm Service Agency / Commodity Credit Corporation (CCC) - Assistance for Socially 

Disadvantaged Farmers and Ranchers

12X0172

American Rescue Plan Act $ — $ 1,960 $ 1,960 $ — $ 1

CCC- Food for Peace Title II Grants (Foreign Agricultural Service) 121/22278 American Rescue Plan Act — 800 648 152 209

FNS-Supplemental Nutrition Assistance Program (SNAP) 120/13505 Families First Coronavirus Response Act — — — — 2

FNS-SNAP 120/13505 CARES Act 60 — 55 5 51

FNS-SNAP 1203505 Families First Coronavirus Response Act 1,082 3,700 2,928 1,854 2,519

FNS-SNAP 1213505 Consolidated Appropriations Act, 2021 — 60,866 47,560 13,306 46,965

FNS-SNAP 12X3505 Consolidated Appropriations Act, 2021 — 5 — 5 —

FNS-SNAP 121/33505 American Rescue Plan Act — 1,150 241 909 43

FNS-SNAP 121/63505 American Rescue Plan Act — 25 — 25 —

FNS-SNAP 121/73505 American Rescue Plan Act — 1,000 966 34 176

FNS-Commodity Assistance Program (CAP) 120/13507 Families First Coronavirus Response Act 186 12 196 2 273

FNS-CAP 120/13507 CARES Act 59 25 81 3 261

FNS-CAP 121/23507 American Rescue Plan Act — 37 37 — 14

FNS-CAP 1213507 Consolidated Appropriations Act, 2021 — 413 412 1 138

FNS-Special Supplemental Nutrition Program for Women, Infants and Children (WIC) 120/13510 Families First Coronavirus Response Act 500 — 500 — 500

FNS-WIC 121/23510 American Rescue Plan Act — 490 490 — 115

FNS-WIC 121/43510 American Rescue Plan Act — 390 — 390 —

FNS-Child Nutrition Programs (CN) 120/13539 CARES Act 1,762 554 2,316 — 3,235

FNS-CN 1213539 Consolidated Appropriations Act, 2021 — 1,800 1,477 323 729

FSIS-Food Safety and Inspection Service 120/13700 CARES Act 16 2 17 1 20

AMS- Marketing Services 120/12500 CARES Act 32 — 32 — 33

AMS - Marketing Services 12X2500 Consolidated Appropriations Act, 2021 — 522 7 515 2

AMS - Payments to States and Possessions 12X2501 Consolidated Appropriations Act, 2021 — 100 3 97 1

APHIS- Salaries and Expenses 121/21600 Consolidated Appropriations Act, 2021 — 102 — 102 —

APHIS- Salaries and Expenses 12X1600 American Rescue Plan Act — 300 — 300 —

Forest Service-Capital Improvement and Maintenance 120/11103 CARES Act 18 — 18 — 9

Forest Service-Forest and Rangeland Research 120/11104 CARES Act 3 — 3 — 1

Forest Service-National Forest System 120/11106 CARES Act 18 — 17 1 17

Forest Service-Wildland Fire Management 120/11115 CARES Act 2 — 2 — 2

Rural Development- Distance Learning, Telemedicine, and Broadband Program 12X1232 CARES Act 24 — 24 — —

Rural Development-Distance Learning, Telemedicine, and Broadband Program 120/11232 CARES Act 12 — 7 5 —

Rural Development-Rural Business Program Account 120/11902 CARES Act 13 — 13 — 16

Rural Development- Rental Assistance Program 121/20137 American Rescue Plan Act — 100 100 — 17

Rural Development- Rural Community Facilities Program Account 121/31951 American Rescue Plan Act — 500 25 475 25

Rural Development Rural Housing Insurance Fund Program Account 121/32081 American Rescue Plan Act — 39 1 38 1

Rural Development Rural Cooperative Development Grants 12X1900 Consolidated Appropriations Act, 2021 — 38 35 3 3

NIFA - Farming Opportunities Training and Outreach Program; Farm Stress Program; 

Gus Schumacher Nutrition Incentive Program 

12X0502

Consolidated Appropriations Act, 2021 — 140 123 17 1

FAS- Salaries and Expenses 120/12900 CARES Act 2 — 1 1 1

Office of the Secretary 1200115 Families First Coronavirus Response Act 93 32 29 96 1,127

Office of the Secretary 12X0115 CARES Act 16,479 201 12,794 3,886 14,380

Office of the Secretary 12X0115 CARES Act and Consolidated 

Appropriations Act, 2021 — 11,225 7,927 3,298 7,587

Office of the Secretary 12X0115 American Rescue Plan Act — 4,658 2 4,656 —

Office of Inspector General 120/10900 CARES Act — — — — —

Office of Inspector General 121/20900 American Rescue Plan Act — 3 2 1 2

Total $ 20,361 $ 91,189 $ 81,049 $ 30,501 $ 78,476
146 Section II | Financial Information

FY 2021 

Account Name

Farm Service Agency / 

Commodity Credit Corporation 

(CCC) - Assistance for Socially 

Disadvantaged Farmers and 

Ranchers

CCC- Food for Peace 

Title II Grants 

(Foreign 

Agricultural Service)

FNS-Supplemental 

Nutrition 

Assistance 

Program (SNAP) FNS-SNAP FNS-SNAP FNS-SNAP FNS-SNAP FNS-SNAP

Treasury Account Symbol 12X0172 121/22278 120/13505 120/13505 1203505 1213505 12X3505 121/33505

Purpose

American Rescue Plan Act

American Rescue 

Plan Act

Families First 

Coronavirus 

Response Act CARES Act

Families First 

Coronavirus 

Response Act

Consolidated 

Appropriations 

Act, 2021

Consolidated 

Appropriations 

Act, 2021

American 

Rescue Plan Act

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 1,959 $ 591 $ 1 $ 71 $ 1,855 $ 13,902 $ 5 $ 1,107

Total Intragovernmental Assets 1,959 591 1 71 1,855 13,902 5 1,107

Accounts Receivable, Net (Note 6) — — — — — — — —

Inventory and Related Property, Net (Note 8) — 14 — — — — — —

Advances and Prepayments — — — — — — — —

Total Assets 1,959 605 1 71 1,855 13,902 5 1,107

Intragovernmental:

Accounts Payable — — — — — — — —

Debt (Note 12) — — — — — — — —

Advances from Others and Deferred Revenue — — — — — — — —

Other Liabilities (Note 16) — — — — — — — —

Total Intragovernmental Liabilities — — — — — — — —

Accounts Payable — 50 — — — — — —

Benefits Due and Payable — — 1 50 — 474 — 198

Other Liabilities (Note 16, 17 & 18) 1,959 58 — 3 — 122 — —

Total Liabilities 1,959 108 1 53 — 596 — 198

Unexpended Appropriations — 483 — 18 1,855 13,306 5 909

Cumulative Results of Operations — 14 — — — — — —

Total Liabilities and Net Position 1,959 605 1 71 1,855 13,902 5 1,107

STATEMENT OF NET COST

Gross Program Costs 1,960 303 — 42 (773) 47,560 — 241

Net Cost of Operations (Note 20) 1,960 303 — 42 (773) 47,560 — 241

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — — — 60 1,082 — — —

Appropriations Received 5,050 800 — — — 60,866 5 1,150

Appropriations Transferred in/out — — — — — — — —

Other Adjustments (3,090) — — — — — — —

Appropriations Used (1,960) (317) — (42) 773 (47,560) — (241)

Net Change in Unexpended Appropriations — 483 — (42) 773 13,306 5 909

Total Unexpended Appropriations Ending Balance — 483 — 18 1,855 13,306 5 909

Cumulative Results of Operations:

Beginning Balance — — — — — — — —

Appropriations Used 1,960 317 — 42 (773) 47,560 — 241

Net Cost of Operations (1,960) (303) — (42) 773 (47,560) — (241)

Net Change in Cumulative Results of Operations — 14 — — — — — —

Cumulative Results of Operations — 14 — — — — — —

Net Position End of Period $ — $ 497 $ — $ 18 $ 1,855 $ 13,306 $ 5 $ 909
USDA | 2022 Agency Financial Report 147

FY 2021 continued

Account Name

FNS-SNAP FNS-SNAP

FNS-Commodity 

Assistance 

Program (CAP) FNS-CAP FNS-CAP FNS-CAP

FNS-Special Supplemental 

Nutrition Program for 

Women, Infants and 

Children (WIC) FNS-WIC

Treasury Account Symbol 121/63505 121/73505 120/13507 120/13507 121/23507 1213507 120/13510 121/23510

Purpose American Rescue 

Plan Act

American Rescue 

Plan Act

Families First 

Coronavirus 

Response Act CARES Act

American Rescue 

Plan Act

Consolidated 

Appropriations 

Act, 2021

Families First Coronavirus 

Response Act

American Rescue 

Plan Act

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 25 $ 824 $ 31 $ 27 $ 23 $ 275 $ — $ 375

Total Intragovernmental Assets 25 824 31 27 23 275 — 375

Accounts Receivable, Net (Note 6) — — — — — — — —

Inventory and Related Property, Net (Note 8) — — — — — — — —

Advances and Prepayments — — — — — — — —

Total Assets 25 824 31 27 23 275 — 375

Intragovernmental:

Accounts Payable — — — — — — — —

Debt (Note 12) — — — — — — — —

Advances from Others and Deferred Revenue — — — — — — — —

Other Liabilities (Note 16) — — — — — — — —

Total Intragovernmental Liabilities — — — — — — — —

Accounts Payable — — 1 — 1 4 — —

Benefits Due and Payable — 790 — — 1 — — —

Other Liabilities (Note 16, 17 & 18) — — 7 9 — 36 — 375

Total Liabilities — 790 8 9 2 40 — 375

Unexpended Appropriations 25 34 23 18 21 235 — —

Cumulative Results of Operations — — — — — — — —

Total Liabilities and Net Position 25 824 31 27 23 275 — 375

STATEMENT OF NET COST

Gross Program Costs — 966 225 202 16 178 500 490

Net Cost of Operations (Note 20) — 966 225 202 16 178 500 490

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — — 248 220 — — 500 —

Appropriations Received 25 1,000 — — 37 413 — 490

Appropriations Transferred in/out — — — — — — — —

Other Adjustments — — — — — — — —

Appropriations Used — (966) (225) (202) (16) (178) (500) (490)

Net Change in Unexpended Appropriations 25 34 (225) (202) 21 235 (500) —

Total Unexpended Appropriations Ending Balance 25 34 23 18 21 235 — —

Cumulative Results of Operations:

Beginning Balance — — — — — — — —

Appropriations Used — 966 225 202 16 178 500 490

Net Cost of Operations — (966) (225) (202) (16) (178) (500) (490)

Net Change in Cumulative Results of Operations — — — — — — — —

Cumulative Results of Operations — — — — — — — —

Net Position End of Period $ 25 $ 34 $ 23 $ 18 $ 21 $ 235 $ — $ —
148 Section II | Financial Information

FY 2021 continued

Account Name

FNS-WIC

FNS-Child Nutrition 

Programs (CN) FNS-CN

FSIS-Food Safety 

and Inspection 

Service

AMS-Marketing 

Services

AMS-Marketing 

Services

AMS-Payments to 

States and 

Possessions

APHIS- Salaries and 

Expenses

Treasury Account Symbol 121/43510 120/13539 1213539 120/13700 120/12500 12X2500 12X2501 121/21600

Purpose American Rescue 

Plan Act CARES Act

Consolidated 

Appropriations Act, 

2021 CARES Act CARES Act

Consolidated 

Appropriations Act, 

2021

Consolidated 

Appropriations Act, 

2021

Consolidated 

Appropriations Act, 

2021

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 390 $ 55 $ 1,071 $ 1 $ — $ 520 $ 99 $ 102

Total Intragovernmental Assets 390 55 1,071 1 — 520 99 102

Accounts Receivable, Net (Note 6) — — — — — — — —

Inventory and Related Property, Net (Note 8) — — — — — — — —

Advances and Prepayments — — — — — — — —

Total Assets 390 55 1,071 1 — 520 99 102

Intragovernmental:

Accounts Payable — — — — — — — —

Debt (Note 12) — — — — — — — —

Advances from Others and Deferred Revenue — — — — — — — —

Other Liabilities (Note 16) — — — — — — — —

Total Intragovernmental Liabilities — — — — — — — —

Accounts Payable — — — — — — — —

Benefits Due and Payable — 55 — — — — — —

Other Liabilities (Note 16, 17 & 18) — — 748 — — — — —

Total Liabilities — 55 748 — — — — —

Unexpended Appropriations 390 — 323 1 — 520 99 102

Cumulative Results of Operations — — — — — — — —

Total Liabilities and Net Position 390 55 1,071 1 — 520 99 102

STATEMENT OF NET COST

Gross Program Costs — 1,761 1,477 19 32 2 1 —

Net Cost of Operations (Note 20) — 1,761 1,477 19 32 2 1 —

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — 1,761 — 20 32 — — —

Appropriations Received 390 — 1,800 — — 522 100 635

Appropriations Transferred in/out — — — — — — — (533)

Other Adjustments — — — — — — — —

Appropriations Used — (1,761) (1,477) (19) (32) (2) (1) —

Net Change in Unexpended Appropriations 390 (1,761) 323 (19) (32) 520 99 102

Total Unexpended Appropriations Ending 390 — 323 1 — 520 99 102

Cumulative Results of Operations:

Beginning Balance — — — — — — — —

Appropriations Used — 1,761 1,477 19 32 2 1 —

Net Cost of Operations — (1,761) (1,477) (19) (32) (2) (1) —

Net Change in Cumulative Results of Operations — — — — — — — —

Cumulative Results of Operations — — — — — — — —

Net Position End of Period $ 390 $ — $ 323 $ 1 $ — $ 520 $ 99 $ 102
USDA | 2022 Agency Financial Report 149

FY 2021 continued

Account Name

APHIS- Salaries 

and Expenses

Forest ServiceCapital 

Improvement and 

Maintenance

Forest ServiceForest and 

Rangeland 

Research

Forest ServiceNational Forest 

System

Forest ServiceWildland Fire 

Management

Rural DevelopmentDistance Learning, 

Telemedicine, and 

Broadband Program

Rural DevelopmentDistance Learning, 

Telemedicine, and 

Broadband Program

Rural 

DevelopmentRural Business 

Program Account

Treasury Account Symbol 12X1600 120/11103 120/11104 120/11106 120/11115 12X1232 120/11232 120/11902

Purpose American Rescue 

Plan Act CARES Act CARES Act CARES Act CARES Act CARES Act CARES Act CARES Act

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 300 $ 16 $ 2 $ 10 $ 2 $ 24 $ 97 $ 3

Total Intragovernmental Assets 300 16 2 10 2 24 97 3

Accounts Receivable, Net (Note 6) — — — — — — — —

Inventory and Related Property, Net (Note 8) — — — — — — — —

Advances and Prepayments — — — — — — — —

Total Assets 300 16 2 10 2 24 97 3

Intragovernmental:

Accounts Payable — — — — — — — —

Debt (Note 12) — — — — — — — —

Advances from Others and Deferred Revenue — — — — — — — —

Other Liabilities (Note 16) — — — — — — — —

Total Intragovernmental Liabilities — — — — — — — —

Accounts Payable — — — — — — — —

Benefits Due and Payable — — — — — — — —

Other Liabilities (Note 16, 17 & 18) — — — — — — — —

Total Liabilities — — — — — — — —

Unexpended Appropriations 300 16 2 10 2 24 97 3

Cumulative Results of Operations — — — — — — — —

Total Liabilities and Net Position 300 16 2 10 2 24 97 3

STATEMENT OF NET COST

Gross Program Costs — 7 1 17 2 — — 16

Net Cost of Operations (Note 20) — 7 1 17 2 — — 16

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — 23 3 27 4 24 97 19

Appropriations Received 300 — — — — — — —

Appropriations Transferred in/out — — — — — — — —

Other Adjustments — — — — — — — —

Appropriations Used — (7) (1) (17) (2) — — (16)

Net Change in Unexpended Appropriations 300 (7) (1) (17) (2) — — (16)

Total Unexpended Appropriations Ending Balance 300 16 2 10 2 24 97 3

Cumulative Results of Operations:

Beginning Balance — — — — — — — —

Appropriations Used — 7 1 17 2 — — 16

Net Cost of Operations — (7) (1) (17) (2) — — (16)

Net Change in Cumulative Results of Operations — — — — — — — —

Cumulative Results of Operations — — — — — — — —

Net Position End of Period $ 300 $ 16 $ 2 $ 10 $ 2 $ 24 $ 97 $ 3
150 Section II | Financial Information

FY 2021 continued

Account Name Rural 

DevelopmentRental Assistance 

Program

Rural 

DevelopmentRural Community 

Faculties 

Program Account

Rural Development 

Rural Housing 

Insurance Fund 

Program Account

Rural Development 

Rural Cooperative 

Development 

Grants 

NIFA-Farming 

Opportunities Training and 

Outreach Program; Farm 

Stress Program; Gus 

Schumacher Nutrition 

Incentive Program 

FAS-Salaries and 

Expenses

Office of the 

Secretary

Office of the 

Secretary

Treasury Account Symbol 121/20137 121/31951 121/32081 12X1900 12X0502 120/12900 1200115 12X0115

Purpose American Rescue 

Plan Act

American Rescue 

Plan Act

American Rescue 

Plan Act

Consolidated 

Appropriations Act, 

2021

Consolidated 

Appropriations Act, 2021 CARES Act

Families First 

Coronavirus 

Response Act CARES Act

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 83 $ 475 $ 38 $ 35 $ 140 $ 2 $ 409 $ 3,931

Total Intragovernmental Assets 83 475 38 35 140 2 409 3,931

Accounts Receivable, Net (Note 6) — — — — — — — 29

Inventory and Related Property, Net (Note 8) — — — — — — — —

Advances and Prepayments — — — — — — — 15

Total Assets 83 475 38 35 140 2 409 3,975

Intragovernmental:

Accounts Payable — — — — — — — —

Debt (Note 12) — — — — — — — —

Advances from Others and Deferred Revenue — — — — — — — —

Other Liabilities (Note 16) — — — — — — — —

Total Intragovernmental Liabilities — — — — — — — —

Accounts Payable — — — — — — (1) 28

Benefits Due and Payable — — — — — — — —

Other Liabilities (Note 16, 17 & 18) — — — — — — — —

Total Liabilities — — — — — — (1) 28

Unexpended Appropriations 83 475 38 35 140 2 410 2,383

Cumulative Results of Operations — — — — — — — 1,564

Total Liabilities and Net Position 83 475 38 35 140 2 409 3,975

STATEMENT OF NET COST

Gross Program Costs 17 25 1 3 — 1 1,009 12,809

Net Cost of Operations (Note 20) 17 25 1 3 — 1 1,009 12,809

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — — — — — 3 1,419 4,217

Appropriations Received 100 500 39 38 141 — — —

Appropriations Transferred in/out — — — — — — — (999)

Other Adjustments — — — — — — — —

Appropriations Used (17) (25) (1) (3) (1) (1) (1,009) (835)

Net Change in Unexpended Appropriations 83 475 38 35 140 (1) (1,009) (1,834)

Total Unexpended Appropriations Ending Balance 83 475 38 35 140 2 410 2,383

Cumulative Results of Operations:

Beginning Balance — — — — — — — 13,538

Appropriations Used 17 25 1 3 — 1 1,009 835

Net Cost of Operations (17) (25) (1) (3) — (1) (1,009) (12,809)

Net Change in Cumulative Results of Operations — — — — — — — (11,974)

Cumulative Results of Operations — — — — — — — 1,564

Net Position End of Period $ 83 $ 475 $ 38 $ 35 $ 140 $ 2 $ 410 $ 3,947
USDA | 2022 Agency Financial Report 151

FY 2021 continued

Account Name Office of the Secretary Office of the Secretary Office of Inspector General

Treasury Account Symbol 12X0115 12X0115 121/20900

Purpose

CARES Act and 

Consolidated 

Appropriations Act, 2021 American Rescue Plan Act American Rescue Plan Act Total

BALANCE SHEET

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 3,638 $ 4,657 $ — $ 37,171

Total Intragovernmental Assets 3,638 4,657 — 37,171

Accounts Receivable, Net (Note 6) — — — 29

Inventory and Related Property, Net (Note 8) — — — 14

Advances and Prepayments — — — 15

Total Assets 3,638 4,657 — 37,229

Intragovernmental:

Accounts Payable — — — —

Debt (Note 12) — — — —

Advances from Others and Deferred Revenue — — — —

Other Liabilities (Note 16) — — — —

Total Intragovernmental Liabilities — — — —

Accounts Payable 5 — — 88

Benefits Due and Payable — — — 1,569

Other Liabilities (Note 16, 17 & 18) 281 — — 3,598

Total Liabilities 286 — — 5,255

Unexpended Appropriations 3,352 4,657 — 30,396

Cumulative Results of Operations — — — 1,578

Total Liabilities and Net Position 3,638 4,657 — 37,229

STATEMENT OF NET COST

Gross Program Costs 7,873 — 2 76,985

Net Cost of Operations (Note 20) 7,873 — 2 76,985

STATEMENT OF CHANGES IN NET POSITION

Unexpended Appropriations:

Beginning Balance — — — 9,759

Appropriations Received 11,225 4,657 2 90,285

Appropriations Transferred in/out — — — (1,532)

Other Adjustments — — — (3,090)

Appropriations Used (7,873) — (2) (65,026)

Net Change in Unexpended Appropriations 3,352 4,657 — 20,637

Total Unexpended Appropriations Ending Balance 3,352 4,657 — 30,396

Cumulative Results of Operations:

Beginning Balance — — — 13,538

Appropriations Used 7,873 — 2 65,025

Net Cost of Operations (7,873) — (2) (76,985)

Net Change in Cumulative Results of Operations — — — (11,960)

Cumulative Results of Operations — — — 1,578

Net Position End of Period $ 3,352 $ 4,657 $ — $ 31,974
152 Section II | Financial Information

RMA took numerous actions to provide relief in the face of the pandemic to ensure crop insurance 

continued to provide a farm safety net under such unprecedented times. RMA did not initially receive 

direct budgetary resources to respond to COVID-19 and most of the actions provided reporting 

flexibilities to AIP’s and producers. 

Beginning FY 2021, RMA was assigned to administer the Pandemic Cover Crop Program as part of 

USDA’s Pandemic Assistance for Producers initiative, a bundle of programs to bring financial 

assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions. 

NOTE 27: Subsequent Events

Management is not aware of any events or transactions that have occurred subsequent to the balance 

sheet date, but prior to the issuance of the financial statements, that have a material effect on the 

financial statements and therefore require adjustment or disclosure in the statements.

Note Disclosure Related to the Statement of Net Cost and 

Statement of Changes in Net Position

NOTE 28: Reclassification of Financial Statement Line Items for 

Financial Report Compilation Process 

To prepare the Financial Report (FR) of the U.S. Government, the Department of the Treasury requires 

agencies to submit an adjusted trial balance, which is a listing of amounts by U.S. Standard General 

Ledger account that appear in the financial statements. Treasury uses the trial balance information 

reported in the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) to 

develop a Reclassified Statement of Net Cost, and a Reclassified Statement of Changes in Net Position 

for each agency, which are accessed using GTAS.

Treasury eliminates all intragovernmental balances from the reclassified statements and aggregates 

lines with the same title to develop the FR statements. This note shows the USDA’s financial 

statements and the USDA’s reclassified statements prior to elimination of intragovernmental balances 

and prior to aggregation of repeated FR line items. 

A copy of the 2021 FR can be found on the Treasury's Reports, Statements and Publications website 

and a copy of the 2022 FR will be posted to this site as soon as it is released. 

The term “intragovernmental” is used in this note to refer to amounts that results from other 

components of the Federal Government. 

The term “non-Federal” is used in this note to refer to Federal Government amounts that result from 

transactions with non-Federal entities. These include transactions with individuals, businesses, 

non-profit entities, and State, local, and foreign governments. 
USDA | 2022 Agency Financial Report 153

Reclassification of Statement of Net Cost to Line Items Used for the Government-wide Statement of Net Cost for the Year Ending September 30, 2022

FY 2022 USDA SNC Line Items Used to Prepare FY 2022 Government-wide SNC

Financial Statement Line Amounts 

Dedicated 

Collections

Other than 

Dedicated 

Collections (with 

Eliminations)

Eliminations 

Between 

Dedicated and 

Other Total Reclassified Financial Statement Line

Gross Costs Gross Cost

$ 2,454 $ 243,552 $ — $ 246,006 Non-federal gross cost

Federal gross cost

84 2,091 — 2,175 Benefit program costs (RC 26)/2

30 975 — 1,005 Imputed costs (RC25)/2

207 1,749 144 1,812 Buy/Sell Cost (RC24)/2

— 1 — 1 Purchase of assets (RC 24)/2

— 3,847 — 3,847 Borrowing and other interest expense (RC05)/2

23 543 — 566 Other expenses (without reciprocals) (RC 29)

— (1) — (1) Reconciling Item - Purchase of assets

(2) 1 — (1) Reconciling Item - Rounding

342 9,206 144 9,404 Total federal gross cost

Total Gross Costs $ 255,410 2,796 252,758 144 255,410 Department total gross cost

Earned Revenue Earned revenue

1,409 8,218 — 9,627 Non-federal earned revenue

— (1) — (1) Reconciling Item - Custodial revenue - Non-federal earned revenue

1,409 8,217 — 9,626 Adjusted Non-federal earned revenue

Federal earned revenue

13 652 144 521 Buy/sell revenue (exchange) (RC24)/2

— 1 — 1 Purchase of assets offset (RC 24) / 2

6 — — 6 Federal securities interest revenue including associated gains and losses (exchange) (RC 03)/2

— 531 — 531 Borrowing and other interest revenue (exchange) (RC 05)/2

100 — — 100 Collections Transferred in to a TAS Other Than the General Fund of the U.S. Government - Exchange (RC 13)

— (1) — (1) Reconciling Item - Purchase of assets

(2) 2 — — Reconciling Item - Rounding

— (2) — (2) Reconciling Item - Custodial revenue - Buy/sell revenue (exchange) (RC24)/2

117 1,183 144 1,156 Total federal earned revenue

Less: Total Earned Revenue 10,782 1,526 9,400 144 10,782 Department total earned revenue

Net Cost of Operations $ 244,628 $ 1,270 $ 243,358 $ — $ 244,628 Net cost of operations
154 Section II | Financial Information

Reclassification of Statement of Changes in Net Position to Line Items Used for Government-wide Statement of Operations and Changes in Net Position for the Year 

Ending September 30, 2022

FY 2022 USDA SCNP Line Items Used to Prepare FY 2022 Government-wide SCNP

Financial Statement Line Amounts 

Dedicated 

Collections

Other than 

Dedicated 

Collections (with 

Eliminations)

Eliminations 

Between 

Dedicated and 

Other Total Reclassified Financial Statement Lines

Unexpended Appropriations:

Beginning Balances $ 128,126 $ 468 $ 127,658 $ — $ 128,126 Net position, beginning of period

 Appropriations Received 285,248 12 285,236 — 285,248 Appropriations Received as Adjusted (Rescissions and Other Adjustments) (RC 41)/1

285 6 — 291 Non-expenditure transfers-in of unexpended appropriations and financing sources (RC 08) /1

 Appropriations Transferred (In/Out) (73) — 364 — 364 Non-expenditure transfers-out of unexpended appropriations and financing sources (RC 08) /1

 Other Adjustments (21,650) — (21,650) — (21,650) Appropriations Received as Adjusted (Rescissions and Other Adjustments) (RC 41)/1

 Appropriations Used (222,387) 104 222,283 — 222,387 Appropriations Used (RC 39)

Net Change in Unexpended Appropriations 41,138 193 40,945 — 41,138 Net Change in Unexpended Appropriations

Total Unexpended Appropriations 169,264 661 168,603 — 169,264 Total Unexpended Appropriations

Cumulative Results of Operations:

Beginning Balances 48,327 3,473 44,854 — 48,327 Net position, beginning of period

 — 562 — 562 Collections for Others Transferred to the General Fund of the U.S. Government (RC 44 )

 Other Adjustments (553)

 —

(9)

 —

(9)

Reconciling - Custodial Activity - Collections for others transferred to the General Fund of the U.S. 

Government (RC 44)

 Appropriations Used 222,387 104 222,283 — 222,387 Appropriations expended (RC 38)/1

 1 35 — 36 Other Taxes and Receipts

 Non-exchange Revenue

31,929 622 31,271 — 31,893 Collections transferred into a TAS Other Than the General Fund of the U.S. Government - 

Nonexchange (RC 15)

 Donations and Forfeitures of Cash and Cash 3 1 2 — 3 Other Taxes and Receipts

21,897 76 21,755 218 Appropriation of unavailable special or trust fund receipts transfers-in (RC 07)/1

88 21,679 21,755 12 Appropriation of unavailable special or trust fund receipts transfers-out (RC 07) /1

 3 20,157 20,155 5 Non-expenditure Transfers-In of Unexpended Appropriations and Financing Sources (RC 08)/1

20,645 — 20,155 490 Non-expenditure Transfers-Out of Unexpended Appropriations and Financing Sources (RC 08)/1

 2 1 2 1 Expenditure transfers-in of financing sources (RC 09) /1

 — 2 2 — Expenditure transfers-out of financing sources (RC 09) /1

 — 18 18 — Non-expenditure transfer-in of financing sources - capital transfers (RC 11)

18 — 18 — Non-expenditure transfers-out of financing sources - capital transfers (RC 11)

 — (2) (2) — Transfers-In Without Reimbursement (RC 18)/1

 Transfers (In/Out) without Reimbursement (278) — (2) (2) — Transfers-Out Without Reimbursement (RC 18)/1

 Imputed Financing 1,005 30 975 — 1,005 Imputed Financing Sources (RC 25)/1

(234) 324 — 90 Other Taxes and Receipts

 — (331) — (331) Reconciling Item - Custodial Activity - Other taxes and receipts

 — 5,463 — 5,463 Non-entity collections transferred to the General Fund of the U.S. Government (RC 44)

 —

(188)

 —

(188)

Reconciling Item - Custodial Revenue - Non-entity collections transferred to the General Fund of 

the U.S. Government (RC 44)

 —

(918)

 —

(918)

Accrual for non-entity amounts to be collected and transferred to the General Fund of the U.S. 

Government (RC 48)

 Other (4,461)

 —

(137)

 —

(137)

Reconciling Item - Custodial Activity - Accrual for non-entity amounts to be collected and 

transferred to the General Fund of the U.S. Government (RC 48)

Net Cost of Operations (244,628) 1,270 243,358 — 244,628 Net Cost of Operations

Net Change and Cumulative Results of Operations 5,404 405 4,999 — 5,404 Net Change

Cumulative Results of Operations 53,731 3,878 49,853 — 53,731 Cumulative Results of Operations

Net Position $ 222,995 $ 4,539 $ 218,456 $ — $ 222,995 Net Position
USDA | 2022 Agency Financial Report 155

Required Supplementary Information

Deferred Maintenance and Repairs (Unaudited)

The Forest Service is steward to nearly 193 million acres of national forests and grasslands within the 

National Forest System (NFS). On these NFS lands, the agency manages major assets that are 

categorized as general Property, Plant and Equipment (PP&E), including nearly 40,000 administrative, 

recreation, and research buildings and approximately 30,000 recreational sites, such as campgrounds, 

picnic areas, trailheads, and interpretive sites.

Across the NFS, the agency also manages over 370,000 miles of roads, of which 65,000 miles are for 

passenger vehicles; over 159,000 miles of trails for motorized and non-motorized use; nearly 

13,400 road and trail bridges; and over 1,700 Forest Service owned and Special Use Permitted 

dam structures.

The Agricultural Research Service (ARS) owns/manages approximately 15 million gross square feet of 

facility space in 2,989 buildings on 405,922 acres of land. The Animal and Plant Health Inspection 

Service (APHIS) operates approximately 28 facilities, which includes 378 buildings, in the United 

States and 14 facilities/buildings internationally. The Natural Resources Conservation Service (NRCS) 

portfolio of owned assets encompasses 27 sites, including 12 parcels of owned land, 215 buildings, and 

about 214 other structures. 

Deferred Maintenance & Repairs (DM&R) estimates include capitalized PP&E, non-capitalized 

heritage assets, and non-capitalized or fully depreciated PP&E. 

No DM&R is reported for stewardship land because land is considered to be in acceptable condition 

unless an environmental contamination or liability is identified and the land cannot be used for its 

intended purpose. Stewardship land easements are excluded from DM&R since ownership is retained 

by the landowner. 

Defining and Implementing Maintenance and Repairs Policies in Practice 

Policies for ranking and prioritizing DM&R activities for most assets, except roads, trails, and bridges, 

are based on condition surveys performed on a 5-year revolving schedule. Roads, trails and bridges 

have separate schedules. The agency’s DM&R for NFS passenger car roads is determined every year 

from random sample surveys providing a moderate level of confidence that the DM&R total being 

reported represents the true DM&R. DM&R is not reported for roads that are not part of the passenger 

car system because maintenance needs on those roads are not as recurring and cyclical year over year. 

Bridge inspections occur on a 2-year or 4-year revolving schedule. To-date, scheduled surveys of all 

administrative buildings, dams, bridges, roads open to passenger cars, and recreation sites have 

been accomplished. 
156 Section II | Financial Information

ARS, APHIS, and NRCS use similar condition surveys to estimate DM&R on all major classes of its 

PP&E and heritage assets.

Ranking and Prioritizing Maintenance and Repairs Activities

Maintenance and repair activities are prioritized based on condition surveys and ranked based on 

PP&E and heritage assets that pose serious threats to public health or safety, a natural resource, or the 

ability of the agency to implement its mission. 

Factors Considered in Setting Acceptable Condition

The standards for acceptable operating condition for various classes of PP&E and heritage assets are 

as follows: 

Conditions of roads and bridges within the NFS road system are measured by various standards: 

• Federal Highway Administration regulations for the Federal Highway Safety Act. 

• Best management practices for the nonpoint source provisions of the Clean Water Act from 

U.S. Environmental Protection Agency and States.

• Road management objectives developed through the National Forest Management Act forest 

planning process. 

• Forest Service directives—Forest Service Manual (FSM) 7730, Operation and Maintenance; 

Forest Service Handbook (FSH) 7709.56a, Road Preconstruction, and FSH 7709.56b, 

Transportation Structures Handbook. 

Dams in the NFS are managed according to FSM 7500, Water Storage and Transmission, and FSH 

7509.11, Dams Management Handbook. The condition of a dam is acceptable when the dam meets 

current design standards and does not have any deficiencies that threaten the safety of the structure or 

public. For dams to be rated in acceptable condition, the agency needs to restore the dams to the 

original functional purpose, correct unsightly conditions, or prevent more costly repairs. 

Buildings in the NFS comply with the International Family of Building and Related Codes, the 

National Fire Protection Association Life Safety Code, the Forest Service Health and Safety 

Handbook, and the Occupational Safety Health Administration as determined by condition surveys and 

safety inspections. These requirements are found in FSM 7310, Buildings and Related Facilities. 

Recreation facilities in the NFS are located within recreation sites that range from highly developed 

sites to general forest areas such as campgrounds, trailheads, trails, water and wastewater systems, 

interpretive facilities, and visitor centers. Recreation sites are managed in accordance with Federal 

laws and regulations (Code of Federal Regulations [CFR] 36). 

Detailed management guidelines are contained in FSM 2330, Publicly Managed Recreation 

Opportunities, and forest- and regional-level user guides. Quality standards for developed recreation 

sites in the NFS were established as Meaningful Measures for health and cleanliness, settings, safety 

and security, responsiveness, and the condition of the facility. 
USDA | 2022 Agency Financial Report 157

Trails and trail bridges in the NFS are managed according to Federal law and regulations (CFR 36). 

More specific direction is contained in FSM 2350, Trail, River, and Similar Recreation Opportunities, 

and the FSH 2309.18, Trails Management Handbook. 

ARS, APHIS, and NRCS define acceptable condition in accordance with standards comparable to 

those used in private industry for buildings and other structures. 

Deferred Maintenance and Repair Costs

Asset Category FY 2022 Ending Balance FY 2022 Beginning Balance FY 2021 Ending Balance FY 2021 Beginning Balance

General PP&E $ 8,295 $ 6,782 $ 6,782 $ 6,343

Heritage Assets 290 252 252 223

Total $ 8,585 $ 7,034 $ 7,034 $ 6,566

DM&R costs increased in fiscal year (FY) 2022 across all categories within General PP&E mainly due 

to deteriorating assets, continued focus on data accuracy and thorough condition surveys, and the 

effects of inflation both not allowing funding for maintenance projects to reach as many assets and the 

cost to complete maintenance needs already on the backlog increasing. Funding from the Great 

American Outdoors Act – Legacy Restoration Fund allowed the agency to eliminate $18 million of the 

deferred maintenance backlog over the last year by completing 57 projects. Through FY 2022, the 

Forest Service had 884 internally tracked projects funded by Congress. 

DM&R costs increased in FY 2021 across all categories within General PP&E except for roads. Roads 

DM&R is based on a small random sample that provides an estimate that can range within a statistical 

band. The difference reduction is within those bands. 
158 Section II | Financial Information

Combining Statement of Budgetary Resources (Unaudited)

FPAC 

Business 

Center FSA CCC RMA NRCS FNS FSIS AMS APHIS

FY 2022

Budgetary Budgetary

NonBudgetary 

Credit Reform 

Financing 

Accounts Budgetary

NonBudgetary 

Credit Reform 

Financing 

Accounts Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, 

Net (Discretionary and Mandatory) $ 20 $ 7,100 $ 151 $ 1,085 $ 108 $ 613 $ 6,737 $ 77,803 $ 234 $ 3,679 $ 1,458

Appropriations (Discretionary and Mandatory) 300 12,808 — 2,319 — 12,527 10,349 205,653 1,139 4,619 2,384

Borrowing Authority (Discretionary and Mandatory) — — 3,560 11,978 425 — — — — — —

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 12 306 2,482 9 147 6,305 56 94 231 207 249

Total Budgetary Resources 332 20,214 6,193 15,391 680 19,445 17,142 283,550 1,604 8,505 4,091

Status of Budgetary Resources:

New Obligations and Upward Adjustments (Total) 304 10,916 3,894 14,961 458 18,768 5,798 191,701 1,435 3,971 2,348

Unobligated Balance, End of Year:

Apportioned, Unexpired Accounts 12 5,647 2,271 327 29 666 7,412 30,370 147 2,480 1,716

Exempt from Apportionment, Unexpired Accounts — — — — — — — — — 276 —

Unapportioned, Unexpired Accounts — 3,429 28 101 193 5 1,311 9,429 — 1,571 9

Unexpired Unobligated Balance, End of Year 12 9,076 2,299 428 222 671 8,723 39,799 147 4,327 1,725

Expired Unobligated Balance, End of Year 16 222 — 2 — 6 2,621 52,050 22 207 18

Unobligated Balance, End of Year (Total) 28 9,298 2,299 430 222 677 11,344 91,849 169 4,534 1,743

Total Budgetary Resources 332 20,214 6,193 15,391 680 19,445 17,142 283,550 1,604 8,505 4,091

Outlays, Net, and Disbursements, Net:

Outlays, Net (Total) (Discretionary and Mandatory) 307 10,412 8,927 10,918 4,287 192,291 1,147 2,722 1,886

Distributed Offsetting Receipts (-) — (686) (52) — (1) (1) (18) (196) (12)

Agency Outlays, Net (Discretionary and Mandatory) $ 307 $ 9,726 $ 8,875 $ 10,918 $ 4,286 $ 192,290 $ 1,129 $ 2,526 $ 1,874

Disbursements, Net (Total) (Mandatory) $ 1,230 $ 79
USDA | 2022 Agency Financial Report 159

FS RD ARS NASS NIFA ERS FAS Staff Offices Total

FY 2022

Budgetary Budgetary

NonBudgetary 

Credit Reform 

Financing 

Accounts Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary

NonBudgetary 

Credit Reform 

Financing 

Accounts

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, 

Net (Discretionary and Mandatory) $ 4,344 $ 4,634 $ 4,590 $ 436 $ 26 $ 676 $ 13 $ 221 $ 6,552 $ 115,631 $ 4,849

Appropriations (Discretionary and Mandatory) 17,117 20,605 3 1,797 190 2,350 88 467 (756) 293,956 3

Borrowing Authority (Discretionary and Mandatory) — — 13,065 — — — — — — 11,978 17,050

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 557 748 8,355 173 26 82 2 63 1,545 10,665 10,984

Total Budgetary Resources 22,018 25,987 26,013 2,406 242 3,108 103 751 7,341 432,230 32,886

Status of Budgetary Resources:

New Obligations and Upward Adjustments (Total) 10,208 8,681 17,705 2,168 242 2,048 94 547 2,268 276,458 22,057

Unobligated Balance, End of Year:

Apportioned, Unexpired Accounts 5,176 5,034 8,003 209 — 1,037 1 93 599 60,926 10,303

Exempt from Apportionment, Unexpired Accounts — — — — — — — — — 276 —

Unapportioned, Unexpired Accounts 6,556 12,190 305 2 — 5 — 11 4,422 39,041 526

Unexpired Unobligated Balance, End of Year 11,732 17,224 8,308 211 — 1,042 1 104 5,021 100,243 10,829

Expired Unobligated Balance, End of Year 78 82 — 27 — 18 8 100 52 55,529 —

Unobligated Balance, End of Year (Total) 11,810 17,306 8,308 238 — 1,060 9 204 5,073 155,772 10,829

Total Budgetary Resources 22,018 25,987 26,013 2,406 242 3,108 103 751 7,341 432,230 32,886

Outlays, Net, and Disbursements, Net:

Outlays, Net (Total) (Discretionary and Mandatory) 8,485 5,383 1,611 196 1,595 87 403 374 251,031

Distributed Offsetting Receipts (-) (818) (3,976) (18) — (3) 1 — (16) (5,796)

Agency Outlays, Net (Discretionary and Mandatory) $ 7,667 $ 1,407 $ 1,593 $ 196 $ 1,592 $ 88 $ 403 $ 358 $ 245,235

Disbursements, Net (Total) (Mandatory) $ 5,590 $ 6,899
160 Section II | Financial Information

FPAC 

Business 

Center FSA CCC RMA NRCS FNS FSIS AMS APHIS

FY 2021

Budgetary Budgetary

NonBudgetary 

Credit Reform 

Financing 

Accounts Budgetary

NonBudgetary 

Credit Reform 

Financing 

Accounts Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, 

Net (Discretionary and Mandatory) $ 24 $ 21,176 $ 330 $ 792 $ 117 $ 605 $ 6,621 $ 55,563 $ 132 $ 915 $ 649

Appropriations (Discretionary and Mandatory) 292 10,848 6 2,686 - 7,838 4,358 211,887 1,208 6,183 2,417

Borrowing Authority (Discretionary and Mandatory) - - 3,515 13,207 537 - - - - - -

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 10 305 2,931 77 117 4,286 68 70 246 191 257

Total Budgetary Resources 326 32,329 6,782 16,762 771 12,729 11,047 267,520 1,586 7,289 3,323

Status of Budgetary Resources:

New Obligations and Upward Adjustments (Total) 309 25,398 4,110 15,913 581 12,120 4,850 188,200 1,365 3,965 1,721

Unobligated Balance, End of Year:

Apportioned, Unexpired Accounts 9 5,616 2,396 447 19 599 3,534 44,938 206 2,829 1,476

Exempt from Apportionment, Unexpired Accounts - - - - - - - - - 85 -

Unapportioned, Unexpired Accounts - 1,251 276 401 171 5 8 3,816 - 293 105

Unexpired Unobligated Balance, End of Year 9 6,867 2,672 848 190 604 3,542 48,754 206 3,207 1,581

Expired Unobligated Balance, End of Year 8 64 - 1 - 5 2,655 30,566 15 117 21

Unobligated Balance, End of Year (Total) 17 6,931 2,672 849 190 609 6,197 79,320 221 3,324 1,602

Total Budgetary Resources 326 32,329 6,782 16,762 771 12,729 11,047 267,520 1,586 7,289 3,323

Outlays, Net, and Disbursements, Net:

Outlays, Net (Total) (Discretionary and Mandatory) 307 24,095 12,464 6,800 4,325 166,562 1,088 5,024 1,429

Distributed Offsetting Receipts (-) - (418) (63) - (1) (4) (18) (199) (9)

Agency Outlays, Net (Discretionary and Mandatory) $ 307 $ 23,677 $ 12,401 $ 6,800 $ 4,324 $ 166,558 $ 1,070 $ 4,825 $ 1,420

Disbursements, Net (Total) (Mandatory) $ 1,079 $ 93
USDA | 2022 Agency Financial Report 161

FS RD ARS NASS NIFA ERS FAS Staff Offices Total

FY 2021

Budgetary Budgetary

NonBudgetary 

Credit Reform 

Financing 

Accounts Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary

NonBudgetary 

Credit Reform 

Financing 

Accounts

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, 

Net (Discretionary and Mandatory) $ 4,592 $ 3,863 $ 4,278 $ 256 $ 25 $ 737 $ 11 $ 453 $ 613 $ 97,027 $ 4,725

Appropriations (Discretionary and Mandatory) 8,517 6,922 - 1,566 184 1,944 87 451 6,224 273,612 6

Borrowing Authority (Discretionary and Mandatory) - - 10,852 - - - - - - 13,207 14,904

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 594 691 9,317 160 26 39 2 70 1,444 8,536 12,365

Total Budgetary Resources 13,703 11,476 24,447 1,982 235 2,720 100 974 8,281 392,382 32,000

Status of Budgetary Resources:

New Obligations and Upward Adjustments (Total) 9,742 6,920 15,940 1,737 235 2,091 93 773 1,876 277,308 20,631

Unobligated Balance, End of Year:

Apportioned, Unexpired Accounts 2,648 4,411 8,260 222 - 691 2 91 5,298 73,017 10,675

Exempt from Apportionment, Unexpired Accounts - - - - - - - - - 85 -

Unapportioned, Unexpired Accounts 1,293 72 247 1 - (80) - 10 1,066 8,241 694

Unexpired Unobligated Balance, End of Year 3,941 4,483 8,507 223 - 611 2 101 6,364 81,343 11,369

Expired Unobligated Balance, End of Year 20 73 - 22 - 18 5 100 41 33,731 -

Unobligated Balance, End of Year (Total) 3,961 4,556 8,507 245 - 629 7 201 6,405 115,074 11,369

Total Budgetary Resources 13,703 11,476 24,447 1,982 235 2,720 100 974 8,281 392,382 32,000

Outlays, Net, and Disbursements, Net:

Outlays, Net (Total) (Discretionary and Mandatory) 8,553 4,848 1,495 179 1,416 80 405 397 239,467

Distributed Offsetting Receipts (-) (679) (2,844) (18) - (14) (1) - 19 (4,249)

Agency Outlays, Net (Discretionary and Mandatory) $ 7,874 $ 2,004 $ 1,477 $ 179 $ 1,402 $ 79 $ 405 $ 416 $ 235,218

Disbursements, Net (Total) (Mandatory) $ 2,853 $ 4,025
162 Section II | Financial Information

Land (Unaudited)

Forest Service

The Forest Service is steward to over a 193 million acres of General PP&E lands, Stewardship lands 

and permanent land rights encompassing national forests and grasslands which provides a wide range 

of economic, social, and environmental benefits. The mission of the Forest Service is to sustain the 

health, diversity, and productivity of the nation’s forests and grasslands to meet the needs of present 

and future generations. The Forest Service achieves this mission through active land management 

practices supported by science and focused on conservation, preservation, multiple use, and 

sustained yield. 

Forest Service General PP&E lands are predominantly acquired for the construction and or use of 

buildings to support Forest Service goals which include but is not limited to protection of water 

quality, habitat for wildlife and fisheries, forest health, recreation, and forest products. 

Forest Service Stewardship lands are predominantly used to achieve land management goals which 

include but is not limited to protection of water quality, habitat for wildlife and fisheries, forest health, 

recreation, and forest products. 

Land and land rights acquired by the Forest Service are predominantly permanent in nature and include 

surface and or sub-surface rights as fee title or partial interest. Amounts paid during the year to 

maintain such rights are not currently tracked. 

Forest Service lands and permanent land rights are assigned to one of three sub-categories based on 

predominant use and are reported in estimated acres of land. The three sub-categories are commercial 

use land; conservation and preservation land; and operational land. 

Commercial use land or land rights are predominantly used to generate inflows of resources from 

non-federal third parties. Forest Service has broad authority to issue various special use authorization 

types and collect fees for the use of NFS land. These authorized uses do not represent the predominate 

use of NFS lands and they are infrequent in location and temporary in nature. 

Conservation and preservation land or land rights are used for protection and proper use of natural 

resources or preservation of buildings, objects, and landscapes from use. Examples of land conserved 

or preserved for significant natural, historic, scenic, cultural, and recreational resources include 

geologic resource sites, wildlife and plant life refuges, archeological resource sites or local Native 

American or ethnic cultural sites. 

Operational land and land rights are used predominately for general or administrative purposes 

including scientific functions such as conducting and managing research, experimentation, and 

operations; and other related functions that are administrative or other mission related in nature 

including office building locations. 
USDA | 2022 Agency Financial Report 163

Agricultural Research Service

ARS has 390,853 acres of land including 77,655 acres of Federally owned land and 313,198 acres of 

Public Domain land used for research, finding scientific solutions to national and global agricultural 

challenges. ARS is holding 70 acres of land for disposal at Glenn Dale, MD. 

Animal and Plant Health Inspection Service

APHIS owns approximately 1,146 acres of land used primarily for research and development facilities 

in support of our mission to protect American Agriculture. The largest acreage is the land at Moore Air 

base used to house the Insect Management and Molecular Diagnostics Laboratory. The laboratory is 

responsible for developing and validating technologies used to detect and diagnose plant pests. 

Natural Resources Conservation Service

Most of the NRCS portfolio of General PP&E land is used for the operation of Plant Materials Centers 

(PMC). NRCS owns land for 11 of the PMCs; the remaining 14 are on leased land. PMCs evaluate 

plants and develop vegetative information used by NRCS and others to implement and manage natural 

resource conservation practices. PMC land is used for seed and plant production, for plant studies, for 

demonstration areas, and for buildings and facilities to support PMC activities. PMC land not usable 

for these purposes may be managed as natural areas to provide buffers between PMC operations and 

other areas. PMCs manage land resources consistent with NRCS conservation practices to maintain 

soil, water, and other natural resources, and ensure the land is acceptable for future PMC activities.

NRCS has one small parcel of land (0.2 acres), obtained from another Federal agency in 1955, that 

houses a storage unit used for field office supplies. The parcel, located in a residential/mixed use area, 

is maintained in accordance with local requirements.

Stewardship land consists of conservation easements acquired under a variety of easement programs 

and authorities. NRCS’s mission objectives in administering the conservation easement programs are 

to provide landowners with financial and technical assistance in return for maintaining and improving 

high quality productive soils, clean and abundant water, healthy plant and animal communities, clean 

air, an adequate energy supply, and working farm and ranch land. 

The U.S. Department of Agriculture (USDA or the Department) stewardship land easement acreage 

accurately reflects the number of acres under USDA stewardship land easement as of September 30, 

2022. However, for the reasons discussed in this section, this number may be adjusted in future reports. 

Early stewardship land conservation easements were acquired without the benefit of being 

professionally surveyed. Although the best technology at the time was utilized to determine easement 

size, there is variation to the accuracy of those methods compared to present day surveying techniques. 

Presently, all USDA stewardship land conservation easements are surveyed by licensed surveyors to 

determine the size of the easement. While these surveys provide an accurate report of the size of the 

easement, USDA is continually making efforts to enhance its survey standards and requirements to 

reflect survey equipment improvements and ensure accurate reporting. Annual monitoring of 

stewardship land conservation easements allows NRCS to observe situations that may lead to the need 

for an updated survey. For example, lack of signage on an easement boundary or other circumstances 
164 Section II | Financial Information

that result in undefined easement boundaries often precipitate encroachment by adjacent landowners 

and violations of the terms of the easement. In order to reduce the frequency of these encroachments 

and easement violations, USDA stewardship land easements occasionally require new surveys to 

reestablish the easement boundaries. Because these boundary reestablishment surveys are conducted 

under the most current survey standards and requirements, the new survey may reflect a change in the 

acres as originally reported for that particular easement which may result in adjustment in the reporting 

of USDA stewardship land easement acreage.

In addition, the 2014 Farm Bill granted authority to NRCS to amend USDA stewardship land 

easements through an easement administration action. If approved, the resulting amendment may result 

in an increase in the reported USDA stewardship land easement acreage, or, in the case of an 

authorized easement termination, a reduction in the easement and acre count. Finally, though rare, 

litigation involving existing USDA stewardship land easements may result in the termination of an 

easement or a modification to the boundary of an easement, both of which would result in an 

adjustment to the reported USDA stewardship land easement acreage.

General PP&E Estimated Acreage by Predominant Use

Conservation and Preservation Operational Commercial Use Total Estimated Acreage

Agency

Forest Service 349 9,207 — 9,556

Agricultural Research Service — 77,655 — 77,655

Animal and Plant Health Inspection Service — 1,146 — 1,146

Natural Resources Conservation Service — 1,900 — 1,900

Total General PP&E 349 89,908 — 90,257

Held for Disposal or Exchange by Predominant Use

Conservation and Preservation Operational Commercial Use Total Estimated Acreage

Agency

Forest Service — 54 — 54

Agricultural Research Service — 70 — 70

Animal and Plant Health Inspection Service — — — —

Natural Resources Conservation Service — — — —

Total General PP&E — 124 — 124

Stewardship Land Estimated Acreage by Predominant Use

Conservation and Preservation Operational Commercial Use Total Estimated Acreage

Agency

Forest Service 191,491,750 1,186, 404,971 193,083,348

Agricultural Research Service — 313, — 313,198

Natural Resources Conservation Service 3,649,692 — — 3,649,692

Total Stewardship Land 195,141,442 1,499, 404,971 197,046,238

Held for Disposal or Exchange by Predominant Use

Conservation and Preservation Operational Commercial Use Total Estimated Acreage

Agency

Forest Service — 522 — 522

Agricultural Research Service — — — —

Natural Resources Conservation Service — — — —

Total Stewardship Land — 522 — 522
USDA | 2022 Agency Financial Report 165

Section III 

Other Information

USDA Management Challenges 

The Reports Consolidation Act of 2000 requires the U.S. Department of Agriculture (USDA or the 

Department) Office of Inspector General (OIG) to report annually on the most serious management 

challenges USDA and its agencies and mission offices face. OIG sought to provide the Secretary and 

other policymakers with a streamlined report that improves clarity and highlights significant 

information. 

After OIG’s review of the challenges cited in fiscal year (FY) 2021, they made a determination that 

these challenges represent areas where OIG recommends USDA improve its efforts to achieve overall 

excellence for the Department. As a part of the FY 2022 management challenges review, no challenges 

have been removed or added to this year’s report. OIG also highlighted what they consider “key 

challenge area indicators” within the four areas to assist USDA when addressing the challenges. 

a. Program Oversight and Accountability, 

b. Safety and Security,

c. Program Performance, Results, and Outreach, and 

d. Financial Management. 

An example of USDA’s success in program process improvements is USDA’s Rural Development 

(RD). RD ensured the integrity of the substance use disorder facilities as required by the Agriculture 

Improvement Act of 2018. RD also prioritized the requirement by issuing guidance that authorized 

State Directors to add points to loan or grant applications. Specifically, RD added 15 point to loan or 

grant applications, authorized the Rural Housing Service Administrator to add another 15 points to 

loan applications and 30 points to grant applications requesting funding for substance use disorder 

facilities. RD also tracked and prioritized applications to address substance use disorder by including 

identifiers for “Substance Use Disorder” or “Substance Misuse Disorder” in the project’s name in RD’s 

grant processing system. Because RD prioritized the substance use disorder facilities requirement, OIG 

did not make any recommendations pertaining to this program. 

The following pages include the entire USDA Management Challenges Report for FY 2022. 

A full copy of the OIG Report is also available on the Oversight.gov website.
166	 Section III | Other Information

USDA Management Challenges

August 2022 OFFICE OF INSPECTOR GENERAL
USDA | 2022 Agency Financial Report 167

Message from the Inspector General

The Office of Inspector General (OIG) 

provides oversight to U.S. Department 

of Agriculture (USDA) programs 

and operations to help ensure that 

USDA provides the best possible 

service to the public and American 

agriculture. As a result, OIG focuses 

its efforts to advance the value, 

safety and security, and integrity of 

USDA programs. In providing such 

oversight, OIG makes recommendations 

to address agency programs and core 

management functions that may be 

vulnerable to waste, fraud, abuse, and 

mismanagement. These vulnerabilities 

can affect USDA’s ability to achieve 

its mission.1

 Since the Reports 

Consolidation Act of 2000, OIG has 

annually reported on the Department’s 

progress in addressing its most critical 

management challenges.2

 

As discussed in the

2021 USDA Management Challenges, 

OIG implemented a new approach 

to present these challenges. 

OIG streamlined the management 

challenges from seven major challenges 

to four: Program Oversight and 

Accountability; Safety and Security; 

Program Performance, Results, and 

Outreach; and Financial Management. 

We also highlighted what OIG considers

“key challenge area indicators” within 

the four areas; these indicators are a 

means to assist USDA when addressing 

the challenges.3

 This approach aids 

Departmental leadership by providing 

areas to address and resolve both 

broad and unique challenges that can 

affect multiple or specific agencies. It 

also provides the Secretary and other 

policymakers with a more streamlined 

report that improves clarity and 

gives significant information greater 

prominence. See Figure 1 above for a 

summary of the simplified approach. 

This year, we continued to focus on 

the four major challenge areas we 

established the previous year. These 

challenges represent areas in which 

OIG believes USDA could improve its 

efforts to achieve overall excellence for 

the Department. To accomplish this goal, 

Figure 1. Fiscal Year 2022 Management Challenges.

Management Challenge Area

Program Oversight and 

Accountability

Safety and Security

Key Challenge Indicator

Program Process Improvements for 

Enhanced Integrity

Improper Payments

Compliance with Information 

Technology Laws and Regulations

Program Performance, Results, 

and Outreach

Financial Management

Program Performance Monitoring

Data Quality and Integrity to Measure 

Performance and Impact

Outreach Efforts

Internal Controls and Compliance 

with Federal Laws and Regulations

1 Government Performance and Results Modernization Act of 2010 (GPRA), Pub. L. No. 111-352, 124 Stat. 3866.

2 Pub. L. No. 106-531, 114 Stat. 2537.

3 Key challenge indicators are areas of focus that are derived from our findings and can help the Department address the challenges more effectively. 

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
168	 Section III | Other Information

we referenced OIG work from 

June 1, 2021, to May 31, 2022, and 

analyzed the product portfolio, associated 

findings, and recommendations for each 

major challenge area. 

As the Department strives to address 

these four management challenges 

and respective key challenge 

indicators through corrective 

actions, USDA should continue its 

efforts to address outstanding audit 

recommendations in order to safeguard 

the integrity of its many programs. As 

of June 30, 2022, the Office of the Chief 

Financial Officer reported there were 

246 recommendations pending corrective 

action, of which 31 are pending collection, 

211 are pending final action, and 4 are 

pending management decision.

Data acquisition, sharing, quality, and 

integrity for evidence-based decision 

making is key to program success 

and a focus area Governmentwide. A 

key challenge indicator of note in the 

Program Performance, Results, and 

Outreach challenge is Data Quality and 

Integrity. We highlight this indicator 

because the challenges associated 

with data quality and integrity are 

critical, cross-cutting issues that could 

affect USDA’s ability to implement its 

programs, mitigate potential improper 

payments, ensure that outreach efforts 

are reaching the right constituencies, 

and measure impact. As USDA develops 

new approaches to address these 

Management Challenges and key 

challenge indicators, focusing on data 

4 Report Number 21-045-01, USDA COVID-19 Funding Dashboard, Oct. 2021.

quality and integrity should help improve 

program effectiveness. 

As the Department continues to 

implement programs, it should focus 

on the challenges and key challenge 

indicators outlined in this report. 

This focus should help ensure that 

the programs are implemented with 

appropriate oversight and accountability, 

safety and security measures, program 

performance monitoring, outreach efforts, 

and the means and data to adequately 

measure and report program impact. 

For example, our Office of Analytics and 

Innovation released a public coronavirus 

disease 2019 (COVID-19) funding 

dashboard that allows stakeholders to 

explore an overview of the sources and 

uses of USDA’s COVID-19 funding.4

 This 

interactive dashboard uses financial data 

identified by USDA’s Office of Budget and 

Program Analysis and the Forest Service, 

and it allows users to see how much 

funding has been obligated; search for 

funding under particular appropriations 

acts, agencies, or program areas; and 

explore how much funding has been, or 

remains to be, spent. 

In closing, we would like to express our 

sincere appreciation to Secretary Vilsack 

and Deputy Secretary Bronaugh for 

their support of our mission and their 

commitment to excellence across USDA.

We look forward to working with the 

Department and its agencies to further 

address these management challenges 

and key challenge indicators in the 

coming year. 

If you have any questions or would like 

to discuss these management challenges 

and related key challenge indicators, 

please contact me (202-720-8001). You 

or your staff may also contact Audit’s 

Acting Assistant Inspector General, 

Yarisis Rivera Rojas (202-720-4060), 

Investigations’ Assistant Inspector 

General, Kevin Tyrrell (202-734-8052), 

or Analytics and Innovation’s Acting 

Assistant Inspector General, Craig 

Goscha (816-926-7644).

/s/

Phyllis K. Fong

Inspector General

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 169

Table of Contents

Challenge 1: Program Oversight and Accountability.....................................................................................1

Challenge 2: Safety and Security........................................................................................................................6

Challenge 3: Program Performance, Results, and Outreach........................................................................8

Challenge 4: Financial Management..............................................................................................................13

Appendix A: Referenced Reports.....................................................................................................................15

Appendix B: Acronyms and Abbreviations.....................................................................................................17

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
170	 Section III | Other Information

1 USDA OIG—MANAGEMENT CHALLENGES FY 2022

Challenge 1: Program Oversight and Accountability

Effective oversight and monitoring of USDA’s programs and 

operations are vital. This oversight ensures that funds reach 

those for whom they are intended and that programs are efficient, 

produce reliable results, and comply with applicable laws and 

regulations. Program integrity and proper stewardship of resources

are significant responsibilities of the Department; ineffective oversight 

and accountability can negatively impact consumer confidence in 

USDA programs.

Key Challenge Indicators

Program Process 

Improvements for 

Enhanced Integrity

Improper Payments

Key Challenge Indicator:

Program Process 

Improvements for 

Enhanced Integrity

The Department must employ effective 

processes within its programs to ensure 

program integrity and mitigate instances 

of fraud, waste, and abuse. Two of our 

recent audits identified weaknesses in 

the integrity of USDA program processes.

For example, an audit of the Food and 

Nutrition Service’s (FNS) The Emergency

Food Assistance Program (TEFAP) 

found weaknesses in FNS’ oversight of 

the program.5

 TEFAP provides Federally

purchased commodities (USDA-foods) 

to States and territories (States) to 

distribute to recipient agencies serving 

low-income households and individuals. 

TEFAP also provides administrative 

funds to cover States’ and recipient 

agencies’ costs associated with the 

processing, storage, and distribution of 

USDA-foods and foods provided through 

private donations. 

We concluded that FNS did not formally 

evaluate what impact the COVID-19 

pandemic could have on the safe and 

efficient distribution of food assistance to 

States. This occurred because FNS had 

not established a formal enterprise risk 

management process to continuously 

identify and assess risks related to 

TEFAP program operations, including 

changing conditions that could impact 

the integrity of the program. Without 

a formal risk management process 

for TEFAP, there is no assurance 

that FNS periodically reviews and 

documents its response to the impact 

of changing conditions on the safe and 

effective distribution of food assistance 

to States. In fiscal year (FY) 2020, the 

5 Inspection Report 27801-0001-21(1), COVID-19—Oversight of The Emergency Food Assistance Program—Interim Report, Aug. 2021.

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 171

2 USDA OIG—MANAGEMENT CHALLENGES FY 2022

Families First Coronavirus Response and 

Coronavirus Aid, Relief, and Economic 

Security (CARES) Acts increased 

TEFAP funding by $850 million, with 

funding totaling more than $1.2 billion, 

thus increasing the potential risk that 

food assistance may not go to those in 

need. FNS generally agreed with our 

findings and recommendations, and we 

have reached agreement on the planned 

corrective actions to address them. 

Another audit revealed continued 

weaknesses with the Animal and 

Plant Health Inspection Service’s 

(APHIS) Smuggling Interdiction and 

Trade Compliance (SITC) Program.6

 

This program handles smuggling and 

trade compliance issues, primarily at 

marketplace locations, both to prevent 

and detect those compliance issues that 

impact U.S. markets.7

OIG reviewed the corrective actions 

APHIS’ SITC Program implemented 

following a 2012 audit.8

 While 

SITC officials implemented the 13 prior 

audit recommendations, we determined 

that 4 were not fully implemented and 

2 were implemented but not followed. 

This occurred because APHIS relied 

on SITC Program officials to fully 

implement corrective actions without 

verifying internal controls were in 

place and functioning. As a result of 

insufficient internal controls, conditions 

OIG reported more than 8 years ago 

continue to exist. These conditions 

reduce SITC’s ability to detect and 

prevent the unlawful entry and 

distribution of prohibited products. 

OIG also found that the SITC Program 

needs to enhance its controls for searches 

of prohibited products purchased through 

internet sales. SITC management 

relied on the internet team’s knowledge 

and experience instead of documenting 

controls, such as policies and procedures, 

and establishing routine training. As 

a result, this could lead to inconsistent 

instructions on how to complete tasks 

effectively. 

An example of USDA’s success in 

program process improvements for 

enhanced integrity is USDA’s Rural 

Development’s (RD) Community 

Facilities Direct Loan and Grant 

Program.9

 The Rural Housing Service 

(RHS), an agency within RD, administers 

this program. 

6 Audit Report 33601-0004-23, Follow-up on Smuggling Interdiction and Trade Compliance Program, Sept. 2021. 7 The SITC reference guide describes marketplaces as major distribution centers; flea markets; animal, plant, and insect trades shows; large and small chain stores; 

roadside vendors; and neighborhood corner stores. USDA APHIS, Smuggling Interdiction and Trade Compliance Reference Guide (Aug. 2015). 8 Audit Report 33601-0012-CH, Effectiveness of the Smuggling, Interdiction, and Trade Compliance Unit, Aug. 2012. Within this report, we refer to SITC as a 

program, not a unit as it was referred to in our prior audit report. 9 Audit Report 04601-0001-24, Rural Development’s Prioritization of Direct Loans and Grants for Facilities Providing Substance Use Disorder Services, Mar. 2022

Figure 2. A forklift operator manages pallets 

of USDA-foods from The Emergency Food 

Assistance Program. This Federal program helps 

supplement the diets of low-income Americans 

by providing them with emergency food 

assistance at no cost. Photo by Lance Cheung 

from USDA’s Flickr account. It does not depict 

any particular audit or investigation. 

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
172	 Section III

| Other Information

3 USDA OIG—MANAGEMENT CHALLENGES FY 2022

OIG found that RD took positive steps to 

ensure the integrity of the substance use 

disorder facilities requirement from the 

Agriculture Improvement Act of 2018. 

RD prioritized the requirement by issuing 

guidance that authorized State Directors 

to add an additional 15 points to loan or 

grant applications and authorized the 

RHS Administrator to add an additional 

15 points to loan applications and 

30 points to grant applications requesting 

funding under the purview of substance 

use disorder facilities. RD also tracked 

applications that requested substance 

use disorder priority through the project’s 

name. Personnel tracked applications 

by including identifiers for “Substance 

Use Disorder” or “Substance Misuse 

Disorder” in the project’s name in RD’s 

grant processing system. Because 

RD prioritized the substance use disorder 

facilities requirement, we did not make any 

recommendations in this report. 

Figure 3. Medical equipment at a withdrawal 

management center that opened with assistance 

from USDA’s Community Facilities Direct Loan and 

Grant Program. Photo by Preston Keres from USDA’s 

Flickr account. It does not depict any particular audit 

or investigation.

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 173

4 USDA OIG—MANAGEMENT CHALLENGES FY 2022

Key Challenge Indicator:

Improper Payments

An improper payment is any payment 

that should not have been made or that 

was made in an incorrect amount under 

statutory, contractual, administrative, or 

other legally applicable requirements. In 

addition, improper payments include any 

payment with insufficient documentation 

to determine that the payment was 

proper. In order to mitigate such 

payments, agencies must publish reports 

with improper payment information, 

identify susceptible programs, and 

identify improper payments reduction 

targets. Reducing improper payments is 

critical to safeguarding Federal funds. 

Although not all improper payments 

are fraudulent, and not all improper 

payments represent a loss to the 

Government, all improper payments 

can affect the integrity of Government 

programs and compromise the public’s 

trust in the Federal Government. 

These reports are important because 

they provide transparency and allow 

stakeholders to make informed decisions. 

OIG found that USDA was not compliant 

with four of the six Payment Integrity 

and Information Act of 2019 (PIIA) 

requirements for FY 2021.10 Specifically, 

5 of the 17 high-risk programs 

reported did not fully comply with 

PIIA requirements. Five Farm Service 

Agency (FSA) programs did not meet 

the PIIA compliance requirements for 

reporting one or more of the following: 

annual reduction targets, gross improper 

payment rates of less than 10 percent, 

or corrective action plans. As a result, 

these USDA programs could not ensure 

taxpayer money served its intended 

purpose. 

OIG also found that USDA did not meet 

a fourth PIIA compliance requirement 

when the Department did not timely 

report the Risk Management Agency’s 

Federal Crop Insurance Corporation as a 

high-risk program on paymentaccuracy.

gov. Without sufficient information, 

USDA stakeholders are not able to 

make informed decisions using Agency 

Financial Report (AFR) improper 

payment data. Finally, USDA reported 

improper payment information for 

FY 2021 that contained inaccuracies or 

that the Department could not support 

with appropriate documentation. We also 

questioned whether USDA complied with 

Office of Management and Budget (OMB) 

criteria for improper payment reporting. 

Accurate and documented information is 

critical so that USDA stakeholders are 

able to use AFR improper payment data 

to make informed decisions. 

OIG also identified potential 

improper payment concerns with the 

Emergency Watershed Protection 

(EWP) Program under the National 

Resources Conservation Service 

(NRCS). EWP offers technical and 

financial assistance to help local 

Audit Report 50024-0002-24, USDA’s FY 2021 Compliance with Improper Payment Reporting Requirements, June 2022. 10 

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
174	 Section III | Other Information

5 USDA OIG—MANAGEMENT CHALLENGES FY 2022

communities mitigate imminent hazards 

to life and property caused by floods, 

fires, windstorms, and other natural 

occurrences that impair a watershed.11 

OIG found that State officials did not 

initiate the closeout process or deobligate unused funds of more than 

$9.5 million for 18 signed cooperative 

agreements in a timely manner. As 

a result, this could lead to lengthy, 

unliquidated obligations and potentially 

prevent the funds from being used on 

other EWP Program projects. 

Another example of improper payments 

was in FSA’s Florida Citrus Recovery 

Block Grant Program.12 Overall, 

FSA and the State of Florida designed an 

adequate control structure over the block 

grant program; however, we identified 

discrepancies with 8 of the 39 grant 

payments in our sample. Specifically, 

six payments contained errors due to 

inaccurate payment calculations for 

young tree acreage, and two lacked 

11 Audit Report 10702-0001-23, Hurricane Disaster Assistance—Emergency Watershed Protection Program, June 2021. 12 Audit Report 03702-0001-22, Florida Citrus Recovery Block Grant Program, June 2021.

sufficient documentation to support their 

Part 1 payments for grove rehabilitation. 

This occurred because the State of 

Florida’s internal review process did 

not identify these discrepancies prior to 

paying the producer. Specifically, the 

young tree acreage calculation, which 

is complicated and prone to errors, 

was not treated as high-risk during 

the review process, and the process of 

reviewing supporting documentation 

was not consistently completed. As a 

result, grant personnel issued eight 

improper payments, totaling more than 

$7.5 million, to Florida citrus producers 

affected by Hurricane Irma. 

We also found 31 grant participants that 

did not timely apply for the Wildfires 

and Hurricanes Indemnity Program, 

which is a prerequisite for the block 

grant program. As this issue was 

addressed in a prior OIG audit report, 

we made no additional recommendations 

in this report. Additionally, we found 

that the Florida FSA State office issued 

an Emergency Conservation Program 

(ECP) payment of more than $50,000 for 

expenses already paid by the Citrus 

Recovery Block Grant Program. We 

informed the FSA national office of 

this issue and they agreed to work 

with the Florida State office to review 

this payment and determine whether 

collecting the ECP payment from the 

producer is warranted. We agreed with 

FSA’s proposed actions and questioned 

the amount of the ECP payment. 

FSA generally agreed with our findings 

and recommendations, and we have 

reached agreement on the planned 

corrective actions to address them.

Figure 4. Driftwood pile resting on 

an Emergency Watershed Protection 

flood plain easement. Photo by Lance 

Cheung from USDA’s Flickr account. It 

does not depict any particular audit or 

investigation.

Figure 5. An orange harvest from a

citrus packing house. Photo by Richard 

Brassfield from USDA’s Flickr account. It 

does not depict any particular audit or 

investigation.

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 175

Challenge 2: Safety and Security

OIG provides independent audits, investigations, inspections, data 

analytics, and other reviews to help USDA and the American people 

meet critical challenges in safety, security, public health, and animal 

welfare. Our work focuses on issues such as the ongoing challenges

of agricultural inspection activities, the safety of our Nation’s food 

supply, homeland security, and IT security and management.

Key Challenge Indicators

Compliance with Information 

Technology Laws 

and Regulations

Key Challenge Indicator:

Compliance with 

Information Technology 

Laws and Regulations

Cybersecurity is a major factor in any 

organization, and USDA is no different. 

USDA continues to face threats to its 

security, including threats from bad 

actors who seek to find and exploit 

information system vulnerabilities. 

While the Department has made great 

efforts to strengthen its information 

technology (IT) infrastructure, 

compliance with IT laws and regulations 

remains a major concern, particularly 

with ongoing technological advancements 

and an ever-changing cyber realm. 

For example, a recent audit found that 

USDA continues to take positive steps to 

improve its IT security posture, but many 

weaknesses remain.13 OMB establishes 

standards for an effective level of 

security and considers “Managed 

and Measurable”14 to be a sufficient 

level. However, USDA OIG found 

the Department’s maturity level to be 

at the “Consistently Implemented”15

level. Based on OMB’s criteria, the 

Department’s overall score indicates an 

ineffective level of security. 

Due to existing security weaknesses 

identified, OIG continues to report 

a material weakness in USDA’s 

IT security that should be included in 

the Department’s Federal Managers 

Financial Integrity Act report. The Office 

of the Chief Information Officer (OCIO) 

generally agreed with our findings and 

and qualitative effectiveness measures are lacking.

“Consistently Implemented” means that policies, procedures, and strategies are formalized and documented, and are consistently implemented, but quantitative 15 

organization and used to assess them and make necessary changes.

“Managed and Measurable” means that quantitative and qualitative measures on the effectiveness of policies, procedures, and strategies are collected across the 14 

Act, Oct. 2021.

Audit Report 50503-0005-12, U.S. Department of Agriculture, Office of the Chief Information Officer, Fiscal Year 2021 Federal Information Security Modernization 13 

6 USDA OIG—MANAGEMENT CHALLENGES FY 2022

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
176	 Section III

| Other Information

7 USDA OIG—MANAGEMENT CHALLENGES FY 2022

recommendations, and we have reached 

agreement on the planned corrective 

actions to address them. 

Furthermore, OIG performed an 

inspection of four mission areas within 

USDA to determine if the mission 

areas were identifying and mitigating 

vulnerabilities on their public-facing 

web applications and websites.16 We 

reviewed vulnerability scanning policies, 

procedures for identifying and mitigating 

vulnerabilities, as well as public-facing 

web application and website inventories. 

OIG also reviewed the four mission areas’ 

processes pertaining to website and web 

application vulnerability management. 

OCIO and the mission areas generally 

agreed with our findings and 

recommendations, and we have reached 

agreement on the planned corrective 

actions to address them. 

OIG also performed an inspection 

of the OCIO to determine whether 

16 Audit Report 50801-0002-12, Security Over USDA Web Applications, Oct. 2021. 17 Inspection Report 88801-0001-12, USDA’s Information Technology Incident Response Consideration, June 2021.

USDA followed Federal and 

Departmental incident response 

guidance.17 We interviewed OCIO staff 

to gain an understanding of OCIO’s 

incident handling process and reviewed 

documentation provided by staff to 

determine if OCIO’s incident handling 

process complies with applicable laws 

and regulations. We determined that 

USDA follows Federal incident response 

guidance for incident handling; however, 

OCIO did not follow all Departmental 

guidance. OCIO generally agreed with 

our findings and recommendations, 

and we have reached agreement on the 

planned corrective actions to address 

them.

Figure 6. The Office of Inspector General 

regularly audits the Department to help ensure 

compliance with information technology laws 

and regulations. Photo by Lance Cheung from 

USDA’s Flickr account. It does not depict any 

particular audit or investigation.

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 177

Challenge 3: Program Performance, Results, and 

Outreach

USDA manages more than 300 programs that provide a variety 

of services to the American public. These programs include 

grants and loans for rural communities, food assistance for schools 

and private citizens, and research and technical assistance for 

environmental projects. For such a diverse portfolio of programs, 

the Department must have well-designed programs to be a diligent

steward of Federal funds. However, designing, developing, and 

implementing programs that reliably achieve their intended results

has been a recurring challenge for the Department. Monitoring 

program performance is also essential to ensure that USDA programs

and benefits are delivered effectively and are accessible to all of 

the communities USDA serves. Lastly, sustained outreach efforts 

are crucial to ensuring that USDA programs reach their intended 

recipients.

Key Challenge Indicators

Program Performance 

Monitoring

Data Quality and Integrity 

to Measure Performance 

and Impact

Outreach Efforts

Key Challenge Indicator:

Program Performance 

Monitoring

OIG has found that USDA agencies do 

not have adequate reviews or controls 

to report the metrics necessary to 

evaluate program performance. In 

some programs, agencies failed to put 

performance measures in place. As 

a result, some agencies are using 

inaccurate or unreliable data to report 

their program performance and therefore 

cannot ensure that program benefits are 

delivered to the intended recipients. 

For example, OIG found that the 

Office of Partnerships and Public 

Engagement (OPPE) needed to establish 

performance goals for the Outreach and 

Assistance to Socially Disadvantaged 

Farmers and Ranchers and Veteran 

Farmers and Ranchers Program (the 

2501 Program).18,19 The 2501 Program 

provides eligible organizations with grant 

funds for outreach, training, education, 

and technical assistance. 

increasing their participation in agricultural programs and services provided by USDA.

The purpose of the 2501 Program is to assist socially disadvantaged and veteran farmers and ranchers in owning and operating farms and ranches while 19 

(2501 Program) in Fiscal Years 2018 and 2019, Nov. 2021.

Audit Report 91601-0001-21, Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers and Veteran Farmers and Ranchers Program 18 

8 USDA OIG—MANAGEMENT CHALLENGES FY 2022

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
178	 Section III | Other Information

9 USDA OIG—MANAGEMENT CHALLENGES FY 2022

We determined that OPPE did not 

establish a performance plan and set 

performance goals and indicators to 

measure and assess its progress towards 

achieving the 2501 Program’s purpose. 

This occurred because OPPE found it 

challenging to set goals and establish 

performance indicators20 to measure 

and assess the level of performance 

the program should accomplish each 

year. As a result, OPPE cannot meet 

its requirement to report annually on 

its accomplishments and evaluate if 

the grants awarded were successful 

in meeting the objectives of the 

2501 Program. Furthermore, by 

not establishing performance goals, 

OPPE cannot determine if improvements 

are needed to meet the objectives of the 

2501 Program. OPPE generally agreed 

with our findings and recommendations, 

and we have reached agreement on the 

planned corrective actions to address 

them. 

20 The GPRA Modernization Act of 2010, Pub. L. No. 111-352, 124 Stat. 3868 and 3871. 21 Audit Report 33701-0002-21, Controls Over Select Agents, July 2021. 

In another report, OIG found that 

APHIS needs to improve several areas 

pertaining to the Federal Select Agent 

Program (FSAP).21 FSAP is jointly 

administered by APHIS and the Centers 

for Disease Control and Prevention. 

APHIS oversees the possession, use, 

and transfer of biological select agents 

and toxins, which have the potential 

to pose a severe threat to public, 

animal, or plant health, or to animal 

or plant products. We found that the 

Electronic FSAP (eFSAP) system, 

which APHIS uses to monitor entities’ 

compliance with Federal regulations, did 

not always include accurate and complete 

information. Although APHIS stated 

that it requires file managers to review 

information uploaded to eFSAP and 

approve the possession use, or transfer 

of select agents, APHIS lacked oversight 

control procedures to ensure that file 

managers performed these reviews and 

that information was complete and 

accurate. As a result, APHIS may not be 

able to ensure select agents and toxins 

are adequately secured by registered 

entities. APHIS generally agreed with 

our findings and recommendations, 

and we have reached agreement on the 

planned corrective actions to address 

them.

Figure 7. A repurposed shed and trailer, which serves 

as a sturdy mobile shelter for chickens, at a workshop to 

help educate military service veterans about rare breed 

animal and poultry options for farming enterprises. The 

2501 Program enhances the viability and profitability 

of small farms and ranches, beginning farmers and 

ranchers, and socially disadvantaged farmers and 

ranchers by providing eligible organizations with grant 

funds for outreach, training, education, and technical 

assistance, such as this workshop. Photo by Lance 

Cheung from USDA’s Flickr account. It does not depict 

any particular audit or investigation.

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 179

Key Challenge Indicator:

Data Quality and Integrity 

to Measure Performance 

and Impact

OIG has found that USDA faces 

challenges with data quality and 

integrity as it pertains to measuring 

performance and impact. The 

Department must have sufficient controls 

to ensure data are comprehensive and 

correct. These controls are needed 

because the Department uses these 

data to evaluate program performance, 

measure impact, ensure that outreach 

efforts are effective, and make evidencebased decisions. 

For example, OIG reviewed USDA’s 

implementation of the Digital 

Accountability and Transparency Act 

(DATA Act).22 The DATA Act requires 

USDA to submit to the U.S. Department 

of the Treasury (Treasury) Federal 

contract, loan, and grant spending 

information for Federal programs so 

that taxpayers and policymakers can 

more effectively track Federal spending. 

OIG is responsible for reviewing a 

sample of the spending data submitted 

by USDA and submitting to Congress a 

publicly available report assessing the 

completeness, timeliness, and accuracy of 

the sampled data. 

We found that, although 

USDA transmitted its FY 2020 fourth 

quarter submission to the Treasury’s 

DATA Act Broker, its submission was 

not complete and contained records that 

were not accurate or timely, according 

to DATA Act reporting standards. We 

also found that USDA component 

agencies and offices did not consistently 

implement and use Governmentwide 

financial data standards established by 

OMB and the Treasury. As a result, 

the intended users of the data—as 

outlined by the DATA Act—do not have 

consistent, reliable, and searchable 

USDA spending data available on 

USAspending.gov. In addition, without 

the consistent use of standards, 

USDA cannot attest to the reporting of 

reliable, transparent, and consistent 

Federal spending data for public use. 

Departmental and agency officials 

generally agreed with our findings and 

recommendations, and we have reached 

agreement on the planned corrective 

actions to address them.

Audit Report 11601-0002-12, USDA’s Digital Accountability and Transparency Act Compliance Efforts for Fiscal Years 2020 and 2021 22 , Nov. 2021.

10 USDA OIG—MANAGEMENT CHALLENGES FY 2022

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
180	 Section III | Other Information

11 USDA OIG—MANAGEMENT CHALLENGES FY 2022

Key Challenge Indicator:

Outreach Efforts

It is crucial that USDA sustain its 

outreach efforts to ensure its programs 

reach their intended recipients. As 

part of those efforts, the Department 

has stressed the importance of civil 

rights, highlighting that significant 

progress needs to be made in working 

with communities when addressing 

past civil rights issues. Due to the 

public’s perception of how USDA has 

historically treated members of socially 

disadvantaged groups, the Department 

is continually challenged to find effective 

ways to encourage and support all 

citizens in their agribusiness endeavors, 

especially those within underrepresented 

groups.

For example, an audit of USDA’s 

Office of the Assistant Secretary for 

Civil Rights (OASCR) found internal 

control weaknesses over the civil 

rights complaints process.23 USDA’s 

OASCR is responsible for making 

final determinations on complaints of 

discrimination filed by any persons 

who believe they have been subjected 

to prohibited discrimination in a 

USDA program. We concluded that, 

overall, OASCR needs to develop a 

stronger internal control environment 

over its civil rights program complaints 

processing to ensure that complaints 

are timely and appropriately handled, 

and that OASCR achieves established 

goals and objectives. First, OASCR did 

not timely process civil rights program 

complaints. Specifically, in FY 2019, 

OASCR averaged 799 days to process 

program complaints compared to the 

180-day standard. Furthermore, two 

other agencies that OASCR coordinated 

with to resolve complaints took more 

than 220 days and more than 600 days, 

respectively, to process complaints. 

When faced with lengthy timeframes to 

process their complaints, individuals who 

have a legitimate claim of discrimination 

and would otherwise be eligible for 

USDA programs may not continue to 

pursue their complaint or not file a 

23 Audit Report 60601-0001-21, USDA Oversight of Civil Rights Complaints, Sept. 2021.

Figure 8. A hand is raised for questions during a 

joint USDA and Environmental Protection Agency 

National Civil Rights Conference. This photo is 

from USDA’s Flickr account. It does not depict 

any particular audit or investigation. 

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 181

12 USDA OIG—MANAGEMENT CHALLENGES FY 2022

complaint at all. OASCR generally 

agreed with our findings and 

recommendations, and we have reached 

agreement on the planned corrective 

actions to address them. 

In the past, USDA has emphasized 

its efforts to improve outreach. An 

example of USDA’s improved outreach 

efforts is with the implementation of 

the Rural Business-Cooperative Service 

(RBCS) Business and Industry (B&I) 

Guaranteed Loan Program.

RBCS, an agency within the RD mission 

area, offers programs to help businesses 

in rural areas grow. Under the 

RBCS B&I Guaranteed Loan Program, 

private lenders make loans for creating 

and expanding rural businesses, as well 

as creating employment opportunities 

in rural America. A recent inspection 

determined how RBCS implemented 

the B&I CARES Act Guaranteed Loan 

Program and made modifications to 

help guaranteed lenders with existing 

borrowers experiencing cash flow issues.24

One of the inspection’s objectives was 

to determine how the agency conducted 

outreach to rural businesses to provide 

access to funding for sustaining 

operations. 

During the COVID-19 pandemic, there 

was a lack of access to much-needed 

24 Inspection Report 34801-0001-23, COVID-19—Business and Industry Guaranteed Loan Modifications in Response to the Pandemic, Sept. 2021. 25 The NOFA is a notice published in the Federal Register that describes the type of funding available on a competitive basis and provides a contact where an 

application may be submitted.

capital to support business operations 

and facilities. OIG found that to 

ensure lenders and borrowers were 

informed of opportunities for assistance, 

RBCS conducted outreach in multiple 

forms, including webinars hosted by 

itself and by commercial lenders. An 

RBCS official stated that, although there 

were no formal agreements between the 

lenders and USDA to conduct outreach on 

the agency’s behalf, much of the outreach 

was conducted by lending institutions 

due to the natural incentive for lenders 

to make and close loans. Additionally, 

Federal Register notices published 

in March and May 2020 included a 

notification for deferring guaranteed 

loans, notice of funding availability 

(NOFA),25 and guidance on administering 

the B&I CARES Act Program. 

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
182	 Section III | Other Information

13 USDA OIG—MANAGEMENT CHALLENGES FY 2022

Challenge 4: Financial Management

As USDA receives significant additional funding to implement its

pandemic-related responsibilities, the Department should focus 

more of its efforts to strengthen financial management. Each 

year, the Department’s annual financial reports provide the public, 

Congress, and the President with information regarding the funds 

spent on public services. These reports account for USDA’s costs and

revenues, assets and liabilities, and other information. 

Key Challenge Indicators

Internal Controls and

Compliance with Fe

and Regulations

deral Laws 

Key Challenge Indicator:

Internal Controls and 

Compliance with Federal 

Laws and Regulations

As required by law, OIG either conducts 

or oversees audits of the financial 

statements for the Department and 

four component agencies annually to 

determine if the statements are fairly 

presented in accordance with generally 

accepted accounting principles. In 

addition, OIG reviews internal 

controls over financial reporting and 

tests compliance with applicable laws 

and regulations. For FY 2021, the 

Department and four component agencies 

received unmodified opinions on their 

financial statements. 

However, OIG’s consideration of USDA’s 

internal controls over financial reporting 

identified three significant deficiencies.26 

These are: (1) improvements are needed 

by three component agencies in their 

overall financial management; (2) 

USDA needs to improve its IT security 

and controls, as many long-standing 

weaknesses remain;27 and (3) USDA and 

RD need to improve controls over 

unliquidated obligations. We determined 

the first two deficiencies are material 

weaknesses.28 

Two component agencies needed 

improvement in their controls over 

financial reporting. The Commodity 

Credit Corporation (CCC) had one 

material weakness with its account 

26 Audit Report 50401-0020-11, USDA’s Consolidated Financial Statements for Fiscal Years 2021 and 2022, Nov. 2021. 27 This report is also applicable to Management Challenge 2: Safety and Security. 28 A material weakness is a deficiency, or a combination of deficiencies, in internal controls over financial reporting, such that there is a reasonable possibility that 

a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. OMB Bulletin 19-03, Audit 

Requirements for Federal Financial Statements (Aug. 27, 2019).

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 183

for budgetary transactions.29,30 

NRCS had three material weaknesses 

with its controls over obligations and 

unfilled customer orders, controls over 

expenditures, and entity level controls. 

The agencies generally agreed with our 

findings and recommendations, and we 

have reached agreement on the planned 

corrective actions to address them.

Additionally, our review of compliance 

with laws and regulations identified 

noncompliance with the Federal 

Financial Management Improvement Act 

of 1996 (FFMIA), the Antideficiency Act, 

and the Payment Integrity Information 

Act of 2019.31 The results of our tests 

of FFMIA disclosed instances where 

USDA was not substantially compliant 

with Federal Financial Management 

System Requirements (FFMSR), 

applicable Federal accounting standards, 

and the U.S. Standard General Ledger at 

the transaction level. The Department 

generally agreed with our findings and 

recommendations, and we have reached 

agreement on the planned corrective 

actions to address them. 

Improvement Act of 2012 (Pub. L. No. 112-248, 126 Stat. 2390), respectively.

Pub. L. No. 104-208, 110 Stat. 3009; 31 U.S.C. § 1341; and Pub. L. No. 111-204, 124 Stat. 2224, as amended by the Improper Payments Elimination and Recovery 31 

Audit Report 10403-0004-11, Natural Resources Conservation Service’s Financial Statements for Fiscal Years 2021 and 2020, Nov. 2021. 30 

Audit Report 06403-0004-11, Commodity Credit Corporation’s Financial Statements for Fiscal Years 2021 and 2020, Nov. 2021. 29 

14 USDA OIG—MANAGEMENT CHALLENGES FY 2022

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
184	 Section III | Other Information

15 USDA OIG—MANAGEMENT CHALLENGES FY 2022

Appendix A: Referenced Reports

MC Agency Audit Number Audit Title Published Page

1 FNS Inspection Report 27801-0001-21(1) COVID-19—Oversight of The Emergency Food 

Assistance Program—Interim Report Aug. 2021 1

1 APHIS Audit Report 33601-0004-23 Follow-up on Smuggling Interdiction and Trade 

Compliance Program Sept. 2021 2

1 RD Audit Report 04601-0001-24

Rural Development’s Prioritization of Direct Loans and 

Grants for Facilities Providing Substance Use Disorder 

Services

Mar. 2022 2

1 USDA Audit Report 50024-0002-24 USDA’s FY 2021 Compliance with Improper Payment 

Reporting Requirements June 2022 4

1 NRCS Audit Report 10702-0001-23 Hurricane Disaster Assistance—Emergency Watershed 

Protection Program June 2021 5

1 FSA Audit Report 03702-0001-22 Florida Citrus Recovery Block Grant Program June 2021 5

2 OCIO Audit Report 50503-0005-12

U.S. Department of Agriculture, Office of the 

Chief Information Officer, Fiscal Year 2021 Federal 

Information Security Modernization Act

Oct. 2021 6

2 USDA Inspection Report 88801-0001-12 USDA’s Information Technology Incident Response 

Consideration June 2021 7

2 OCIO Audit Report 50801-0002-12 Security Over USDA Web Applications Oct. 2021 8

3 OPPE Audit Report 91601-0001-21

Outreach and Assistance for Socially Disadvantaged 

Farmers and Ranchers and Veteran Farmers and 

Ranchers Program (2501 Program) in Fiscal Years 2018 

and 2019

Nov. 2021 8

3 APHIS Audit Report 33701-0002-21 Controls Over Select Agents July 2021 9

3 USDA Audit Report 11601-0002-12 USDA’s Digital Accountability and Transparency Act 

Compliance Efforts for Fiscal Years 2020 and 2021 Nov. 2021 10

3 OASCR Audit Report 60601-0001-21 USDA Oversight of Civil Rights Complaints Sept. 2021 11

3 RD Inspection Report 34801-0001-23 COVID-19—Business and Industry Guaranteed Loan 

Modifications in Response to the Pandemic Sept. 2021 12

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 185

16 USDA OIG—MANAGEMENT CHALLENGES FY 2022

MC Agency Audit Number Audit Title Published Page

4 USDA Audit Report 50401-0020-11 USDA’s Consolidated Financial Statements for Fiscal 

Years 2021 and 2022 Nov. 2021 13

4 CCC Audit Report 06403-0004-11 Commodity Credit Corporation’s Financial Statements 

for Fiscal Years 2021 and 2020 Nov. 2021 14

4 NRCS Audit Report 10403-0004-11 Natural Resources Conservation Service’s Financial 

Statements for Fiscal Years 2021 and 2020 Nov. 2021 14

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
186	 Section III | Other Information

17 USDA OIG—MANAGEMENT CHALLENGES FY 2022

AFR ................. Agency Financial Report 

APHIS .............. Animal and Plant Health 

Inspection Service

B&I .................. Business and Industry 

CARES ............ Coronavirus Aid, Relief, 

and Economic Security 

Act

CCC ............... Commodity Credit 

Corporation

COVID-19 ...... coronavirus disease 2019

DATA Act ....... Digital Accountability 

and Transparency Act 

ECP................. Emergency Conservation 

Program

eFSAP ............. Electronic Federal Select 

Agent Program

EWP ................ Emergency Watershed 

Protection

FFMIA ............. Federal Financial 

Management 

Improvement Act of 1996 

FFMSR ............. Federal Financial 

Management System 

Requirements

FNS ................. Food and Nutrition 

Service

FSA ................. Farm Service Agency

FSAP ............... Federal Select Agent 

Program 

FY .................... fiscal year

GPRA ............. Government 

Performance and Results 

Modernization Act of 

2010

IT ..................... information technology

NOFA ............. notice of funding 

availability 

NRCS .............. National Resources 

Conservation Service

OASCR ........... Office of the Assistant 

Secretary for Civil Rights

OCIO.............. Office of the Chief 

Information Officer

OIG ................ Office of Inspector 

General

OMB ............... Office of Management 

and Budget

OPPE .............. Office of Partnership and 

Public Engagement

PIIA ................. Payment Integrity and 

Information Act of 2019

RBCS............... Rural BusinessCooperative Service

RD ................... Rural Development

RHS ................. Rural Housing Service

SITC ................ Smuggling Interdiction 

and Trade Compliance

TEFAP ............. The Emergency Food 

Assistance Program

The 2501 

Program ........ Outreach and 

Assistance to Socially 

Disadvantaged Farmers 

and Ranchers and 

Veteran Farmers and 

Ranchers Program

Treasury ......... U.S. Department of the 

Treasury 

USDA .............. U.S. Department of 

Agriculture

USDA-foods ... Federally purchased 

commodities

Appendix B: Acronyms and Abbreviations

CONTENTS

TABLE OF CHALLENGE 1 CHALLENGE 3 REFERENCED 

REPORTS

ACRONYMS CHALLENGE 4 CHALLENGE 2
USDA | 2022 Agency Financial Report 187
188 Section III | Other Information

USDA Response to Management Challenges

USDA takes challenges identified by the OIG very seriously and is aggressively pursuing corrective 

actions to address these weaknesses. The Department has already completed several corrective actions 

recommended by OIG and Government Accountability Office auditors. We will continue to enhance 

internal controls to remain compliant with Federal laws and regulations as indicated in the 

following responses. 

CHALLENGE 1: Program Oversight and Accountability 

Food and Nutrition Service (FNS), Coronavirus Disease 2019 (COVID-19)—Oversight of 

the Emergency Food Assistance Program—Interim Report (27801-0001-21(1))

FNS has taken several actions to improve program processes including the development and 

implementation of a formal risk management process for identifying, assessing, and documenting risks 

that could affect the integrity of The Emergency Food Assistance Program. The risk assessment, 

implemented in July of 2022, supports the agency’s efforts to determine the frequency of testing the 

program’s Internal Control Plan. FNS is now testing and documenting FNS’ response to the risks 

identified during the assessment and the implementation of the mitigation strategies.

Animal Plant Health and Inspection Service (APHIS), Follow-up on Smuggling 

Interdiction and Trade Compliance Program (33601-0004-23)

APHIS has made improvements in support of program oversight and accountability within the 

Smuggling Interdiction and Trade Compliance (SITC) Program. They established routine training to 

support the SITC Internet Team in identifying prohibited products on the internet and developing a 

formal notification document for e-commerce businesses facilitating the sale or selling prohibited 

products on the internet. APHIS also revised the existing Program Assessment and Accountability 

project selection procedures to include greater consideration for reviewing prior external audits, 

consistent with identified risks, implemented in July of 2022. 

Currently, APHIS is developing and implementing oversight procedures to review benchmarks and 

performance metrics and implement corrective actions if metrics are not realized. The agency also 

requires supervisors to review SITC officers’ adherence to requirements in (1) selecting markets to 

implement SITC procedures, (2) developing procedures to guide performance inspections, seizures, 

and traces for prohibited products at secondary express courier operation sites, (3) and requiring 

compliance checks to ensure previously identified pathways were closed. 

USDA, USDA’s FY 2021 Compliance with Improper Payment Reporting Requirements 

(50024-0002-24)

Upon the Office of Management and Budget (OMB)’s upload of the Annual Data Call information to 

the PaymentAccuracy.gov website, the Office of the Chief Financial Officer (OCFO) will download 

the information and review the agency-submitted data. Data discrepancies (if any) will be immediately 

discussed with the Agency Point of Contact. In addition, the OCFO Fiscal Policy Division 
USDA | 2022 Agency Financial Report 189

Management Analyst will contact OMB to request that the information be corrected immediately. 

OCFO and the Risk Management Agency (RMA) took these steps to address this weakness during the 

2021 Annual Data Call. However, because OMB did not complete the correction to the data until after 

OIG began the audit process, OIG found USDA non-compliant. 

The Farm Service Agency (FSA) will submit documentation of the actions the agency will take to 

bring the Noninsured Crop Disaster Assistance, Emergency Conservation, Market Facilitation, Trade 

Mitigation, and Wildfires and Hurricanes Indemnity Programs into compliance with the appropriate 

authorizing and appropriations committees of Congress. Relevant information will be published on 

PaymentAccuracy.gov through coordination with the Farm Production and Conservation Business 

Center’s (FPAC-BC) Performance, Accountability, and Risk Division. 

Natural Resources Conservation Service (NRCS), Hurricane Disaster Assistance—

Emergency Watershed Protection Program (EWP) (10702-0001-23)

NRCS is reviewing sponsor eligibility associated with Damage Survey Reports totaling $41.2 million for 

Hurricanes Harvey, Irma, and Maria to ensure compliance with the EWP Program. NRCS established 

controls to alert states of the unliquidated allocated funds and remaining funds in their accounts. The 

agency has clarified terminology in the National EWP Program Manual to ensure the correct completion 

of project reports. Lastly, the EWP Manual policy now provides guidance regarding the specific due 

dates of status and final reports once the last project agreement of the disaster event expires.

FSA, Florida Citrus Recovery Block Grant (FL CRBG) Program (03702-0001-22)

FSA and the State of Florida completed the corrective actions to address the improper payments 

identified by OIG’s audit of FSA’s Florida Citrus Recovery Block Grant Program. To correct the 

improper payments, FSA and the State of Florida corrected payment calculations, disbursed additional 

payments, collected back overpayment amounts, and obtained adequate documentation to support 

payments, as applicable. The State of Florida also completed an internal review of all producers with 

program reimbursement for young tree acres, verified payment calculations were correct, and corrected 

improper payments identified during the internal review. 

CHALLENGE 2: Safety and Security 

Office of the Chief Information Officer (OCIO), USDA, OCIO, FY 2021 Federal Information 

Security Modernization Act (FISMA), (50503-0005-12)

OCIO and the Department are making great strides to mitigate information technology (IT) security 

weaknesses and deficiencies. The Integrated Project Team (IPT) developed and approved the project 

plan to retire or supersede aged IT security policies and procedures on the Departmental Directive 

website in July 2022. IPT developed Departmental Notice DN-3575-001, Information Systems Log 

Retention Requirements, published May 27, 2021, and Departmental Regulation (DR) 3575-003, 

Information Systems Log Retention Requirements, published July 7, 2022, which guides information 

system audit record and audit log retention requirements for the Department. 
190 Section III | Other Information

In early 2022, OCIO launched a migration that will expand Mobile Device Management (MDM) 

capabilities in the areas of patch management, vulnerability resolution, and reporting. The migration 

from Microsoft Office Management to the Microsoft Intune (cloud-based service) project is also 

underway and will be completed July 30, 2023. 

OCIO addressed high, medium, and low vulnerabilities through the development of the Enterprise 

Patching and Vulnerability Group which was established by charter, and the procedures this group 

follows for monitoring, assessing, communicating, and remediating vulnerabilities are documented in a 

Standard Operating Procedure (SOP). 

OCIO updated guidance and procedures to provide stakeholders with instructions on accepting security 

weaknesses. OCIO has also created mitigating controls by pulling reports from the Cyber Security 

Assessment and Management (CSAM) system to confirm timely remediation of weaknesses. The 

CSAM Security Posture Dashboard Report was developed to collect vulnerability and asset data. 

In June 2022, the Information Security Center (ISC) Audit Management Team met with the Subject 

Matter Experts (SMEs) and determined additional instructions on how to navigate the Privacy Website. 

SMEs are drafting updates to the Privacy Impact Assessments (PIAs) and System of Records Notices 

Website SOPs. OCIO approved the Personally Identifiable Information (PII) Breach Notification and 

Incident Response Plan and assessed a real-life PII incident which included the After-Action Report. 

OCIO provided documentation that Rural Development updated its system with current contingency 

plans to be compliant with DR 3571-001, Information System Contingency Planning and Disaster 

Recovery Planning. 

USDA, USDA’s Information Technology Incident Response Consideration (88801-0001-12)

With the expansion of system capabilities, OCIO specified which fields are required at each stage of 

the incident ticketing process to capture all required information. OCIO also developed a notification 

system to alert the Cyber Incident Response & Recovery Branch Section Supervisor and Branch Chief 

if a ticket is closed without authorization.

Office of the Chief Information Officer (OCIO), Security Over USDA Web Applications 

(50801-0002-12)

OCIO’s Information Security Center (ISC) developed a working group with the stakeholders from the 

Cybersecurity Infrastructure Division that met the interim milestone of producing a gap analysis by 

March 31, 2022. The group continues to monitor the progress of the directive supporting the Web 

Services Vulnerability Identification and Reporting SOP. The development of this SOP is dependent on 

the publication of the policy. 
USDA | 2022 Agency Financial Report 191

CHALLENGE 3: Program Performance, Results, and Outreach 

Office of Partnerships and Public Engagement (OPPE), Outreach and Assistance for 

Socially Disadvantaged Farmers and Ranchers and Veteran Farmers and Ranchers 

Program (2501 Program) in FYs 2018 and 2019 (91601-0001-21)

OPPE completed the position description, hiring, and onboarding for the Performance Improvement 

Officer. The Office revised the program terms and conditions to include requirements to address 

performance goals and key performance indicators in their recurring performance progress reports. 

OPPE also completed Fit/Gap 2

 meetings with GrantSolutions and developed a Program Strategic Plan 

including program goals, key performance indicators, and metrics. Data migration from the current 

system to GrantSolutions will occur within a few months and OPPE estimates that a new grants system 

will be implemented in the summer of 2023. The annual report to Congress on the Socially 

Disadvantaged and Veteran Farmers and Ranchers Program will include program accomplishments 

based on key performance indicators and metrics. 

APHIS, Controls Over Select Agents (33701-0002-21)

On August 1, 2022, APHIS implemented policies and procedures requiring file managers to review and 

document the verification and approval of amendment documentation submitted within the Federal 

Select Agents Program (FSAP). APHIS will continue to develop and implement policies and 

procedures requiring file managers and supervisors to ensure that select agents and associated strains 

maintained by registered entities are accurate and complete. 

On June 21, 2022, APHIS completed the modification of the electronic FSAP (eFSAP) to display the 

expiration date on required OMB forms. The agency plans to modify eFSAP to capture and retain 

security risk assessment (SRA) expiration dates and notify officials when SRAs have expired. 

On July 20, 2022, APHIS also evaluated and documented reporting requirements and definitions 

explaining the discovery, loss, theft, and release of select agents and toxins in the Select Agents and 

Toxin Regulation. APHIS plans to develop and implement additional guidance that details how 

inspectors should document their determinations that entities complied with federal regulations. 

USDA, USDA’s Digital Accountability and Transparency Act Compliance Efforts for 

FYs 2020 and 2021 (11601-0002-12)

OCFO continues to work to complete its mapping of all DATA Act reporting systems and expects to 

complete the undertaking in April 2023. OCFO met with the Office of Contracting and Policy, the 

FPAC mission area, RD, and the National Institutes of Food and Agriculture and captured the data 

needed for the mapping and confirmation of data elements in source systems. OCFO also issued a 

contract to Deloitte, and data mapping is under way. 

2 The FIT/GAP is an assessment of the GrantSolutions system and its capability and applicability for our grants 

management responsibilities to ensure it is a good option to replace eFG. The intent is to remove human 

interaction with data for data integrity.
192 Section III | Other Information

In addition, OCFO Financial Management Services established System Enhancement ENCH0010261 

to address this management challenge. The Requirements and Design Phases were completed in 

January 2022, and the development Phase was completed in March 2022. 

Office of the Assistant Secretary for Civil Rights (OASCR), USDA Oversight of Civil Rights 

Complaints, 60601-0001-21)

OASCR evaluated the timeframe to process program complaints and, based on this analysis, 

developed, and implemented new case processing timeframes. The Office also added staff to the 

Program Directorate and has sufficient budget to continue staffing. OASCR is working with RD to 

update the Memorandum of Understanding and provide the Department of Housing and Urban 

Development with a memorandum outlining specific areas of focus, including complaint processing 

timelines, conciliation agreements, roles and responsibilities, and joint training.

OASCR met with the OCIO to create and execute a privacy threshold assessment and to discuss the 

Program Complaint Management System. OCIO also created and executed a PIA that is posted on 

OASCR’s public website. The office is working with OCIO to complete the required documents for the 

incident management, configuration management and contingency plans for the Civil Rights 

Management System which replaced the Civil Rights Enterprise System. OASCR will continue to 

utilize the Report of Investigation Checklist and case review sessions to devise internal quality control 

reviews of complaint data. 

CHALLENGE 4: Financial Management 

OCFO, USDA’s Consolidated Financial Statements for FYs 2021 and 2022 (50401-0020-11)

OCFO plans to complete the following actions to address this challenge and ensure appropriate agency 

officials obtain training pertaining to DR 2230-001, Reviews of Unliquidated Obligations: (1) develop 

training courses pertaining to DR 2230-001; (2) offer training courses to appropriate agency officials; 

and (3) document completion of these training courses. 

Commodity Credit Corporation (CCC), CCC’s Financial Statements for FYs 2021 and 

2020 (06403-0004-11)

CCC has provided account separation training to managers and supervisors once notified of personnel 

separation. The Corporation provided Financial Management Modernization Initiative (FMMI) 

account disabling training to the managers/supervisors upon notification of FPAC personnel separation 

who have FMMI roles. CCC also reviewed and updated the Employee Separation SOP for account 

removal of FPAC personnel with FMMI roles. CCC will work on updating the FPAC Program 

Boundary System Security Plan and improve controls over financial reporting. 
USDA | 2022 Agency Financial Report 193

Natural Resources Conservation Service (NRCS), NRCS Conservation Service’s Financial 

Statements for FYs 2021 and 2020 (10403-0004-11)

NRCS has accomplished 60 percent of its work in (1) identifying and implementing solutions to 

address current system limitations preventing the proper recording of budgetary transactions, (2) the 

review of the business rules used to make adjustments to the recorded obligation activity to verify 

correcting entries are recorded to correct general ledger accounts, and (3) the determination of the root 

cause for incorrect entries identified during the FY 2021 audit. 

NRCS FPAC-BC is also near completion on enhancing internal communications to ensure timely 

information is provided to control owners. 

RD, RD's Financial Statements for FYs 21 and 22 (85401-0012-11)

RD instructions, SOPs, and handbooks by program have been reviewed and a few areas have been 

identified that requires updates to make the instructions easier to understand. RD have set up individual 

meetings with the programs areas to discuss these areas. By the end of the month, RD will have a list 

of items that will be updated. The goal is to update the instructions, SOPs, and/or handbooks by the 

end of October. 
194 Section III | Other Information

Summary of Financial Statement Audit and 

Management Assurances

Summary of Existing Material Weaknesses

The U.S. Department of Agriculture’s (USDA or the Department) material weaknesses and financial 

system non-conformance, as related to management’s assurance for the Federal Managers’ Financial 

Integrity Act of 1982 (FMFIA) and the certification for the Federal Financial Management 

Improvement Act of 1996 (FFMIA), are listed in Exhibit 21 and Exhibit 22.

Exhibit 21: Summary of Financial Statement Audit 

Audit Opinion as of November 14, 2022: Unmodified 2022 Consolidated Financial Statement Audit

Restatement: No

Material Weakness

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

Financial Management 1 1 

Information Technology Security and 

Controls

1 1 

TOTAL MATERIAL WEAKNESSES 2 2 

Exhibit 22: Summary of Management Assurances

A. Effectiveness of Internal Control Over Reporting (FMFIA § 2)

Statement of Assurance: Modified

Material Weakness

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

Information Technology 1 1 

Financial Management 1 1 

TOTAL MATERIAL WEAKNESSES 2 2 
USDA | 2022 Agency Financial Report 195

B. Effectiveness of Internal Control Over Operations (FMFIA § 2)

Statement of Assurance: Unmodified

Material Weakness

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

TOTAL MATERIAL WEAKNESSES 0 0 

C. Conformance with Federal Financial Management System Requirements (FMFIA § 4)

Statement of Assurance: Systems do not conform to Financial Management System requirements

Non-Conformances

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

Funds Control Management 1 1 

TOTAL NON-CONFORMANCES 1 1 

D. Compliance with Section 803 (A) of the FFMIA

Item Agency Auditor

1. Federal Financial Management System 

Requirements Lack of compliance noted Lack of compliance noted

2. Applicable Federal Accounting Standards Lack of compliance noted Lack of compliance noted

3. U.S. Standard General Ledger at Transaction 

Level Lack of compliance noted Lack of compliance noted
196 Section III | Other Information

Payment Integrity Information Act of 2019 

– Improper Payments Overview 

Payment Integrity

During the past two decades, laws and regulations governing the identification and recovery of 

improper payments have evolved to strengthen improvements in payment accuracy and raise public 

confidence in Federal programs. The Improper Payments Information Act of 2002 (IPIA), as amended 

and expanded by other related laws, collectively required agencies to periodically review all programs 

and activities to identify those susceptible to significant improper payments, conduct payment 

recapture audits, and leverage Government-wide Do Not Pay (DNP) initiatives. 

The IPIA regulations also required extensive reporting requirements. In recent years, the Office of 

Management and Budget (OMB) transformed the improper payment compliance framework to create a 

more unified, comprehensive, and less burdensome set of requirements. IPIA was repealed and 

replaced by the Payment Integrity Information Act of 2019 (PIIA), which was passed on March 2, 

2020. The PIIA modified and restructured existing improper payments laws to help agencies better 

identify and reduce any money wasted because of improper government payments. Not all improper 

payments are fraud, and not all improper payments represent a loss to the government. Generally, an 

improper payment is any payment that should not have been made or that was made in an incorrect 

amount under statutory, contractual, administrative, or other legally applicable requirements. 

OMB identifies programs as either Phase 1 or Phase 2 based on the potential risk of improper 

payments. Phase 1 programs have annual outlays of over $10,000,000 and an improper payment rate 

that is below 1.5 percent. Phase 2 programs exceed the OMB threshold if the reported improper 

payment amount is above $10,000,000 and 1.5 percent of the program’s total annual outlays or above 

$100,000,000 regardless of the associated percentage of the program’s total annual outlays. 

Risk assessments for programs identified as Phase 1 are performed every 3 years. In the interim years, 

risk assessments evaluating programs that experience any significant legislative changes and/or 

significant increase in funding will be done to determine if the U.S. Department of Agriculture (USDA 

or the Department) continues to be at low risk for making significant improper payments at or above 

the threshold levels set by OMB. In 2022, the Department conducted 44 risk assessments of programs 

in the following mission areas: Agricultural Research Services, Commodity Credit Corp, Farm Service 

Agency, Food and Nutrition Service, Forest Service, National Institute of Food and Agriculture, 

Natural Resources Conservation Service, Rural Business-Cooperative Services, Rural Development, 

Rural Housing Service, Rural Utilities Service, and Staff Offices. After performing risk assessments for 

these programs, the Department determined that none of its programs in 2022 were risk-susceptible for 

making significant improper payments at or above the threshold levels set by OMB. 
USDA | 2022 Agency Financial Report 197

USDA has three programs that are considered High-Priority programs. OMB defines high priority 

programs as those programs which have estimates of improper payments resulting in a monetary loss 

that exceeds $100 million annually. Programs that are identified as High-Priority, report quarterly 

through an OMB-driven reporting mechanism. The results of the quarterly scorecards can be found on 

the PaymentAccuracy.gov website.

The three USDA programs identified as High-Priority are:

1. Food and Nutrition Services (FNS) National School Lunch Program (NSLP) 

2. FNS School Breakfast Program (SBP); and 

3. Risk Management Agency (RMA) Federal Crop Insurance Corp (FCIC)

In accordance with OMB Circular A-136, Financial Reporting Requirements, the three High-Priority 

programs have provided further information regarding their actions related to improper payments. 

This information includes an explanation of the description of improper payments made, an estimate of 

the improper payment amount and rate, an explanation of the causes of improper payments, and any 

major actions taken or planned to mitigate those causes. 

The NSLP and SBP are federally assisted meal programs operating in public and nonprofit private 

schools and residential childcare institutions. They provide nutritionally balanced, low-cost or free meals 

to children. For fiscal year (FY) 22, USDA estimates NSLP improper payments (IP) as $87.68 million 

(1.5 percent IP Rate); and SBP improper payments as $53.19 million (2.11 percent IP rate).

NSLP and SBP improper payments typically include two types of errors: 

1. Certification errors occur when a student is certified at the incorrect reimbursement level, 

e.g., at the higher free level instead of reduced-price (which results in an overpayment) or at the 

lower paid or reduced-price levels instead of free (which results in an underpayment); and

2. Aggregation errors occur when, in the process of reimbursements, the incorrect meal counts are 

recorded or transmitted from schools to School Food Authorities (SFAs), from SFAs to State 

Agencies (SAs), or from SAs to FNS.

The Coronavirus Disease 2019 (COVID-19) pandemic changed NSLP and SBP operations beginning 

in March 2020. The change in operations affected the primary component of NSLP/SBP improper 

payments, which is certification error. Beginning in March 2020, SFAs had the option to adopt waivers 

that allowed them to serve free meals to participants through the NSLP’s Seamless Summer Option 

(SSO) or the Summer Food Service Program (SFSP) without the need for applications. FNS recognizes 

that SAs and SFAs needed additional support and flexibility to continue serving meals to children 

while maintaining appropriate safety measures and managing the impacts of COVID-19. Allowing 

SFAs to participate under SSO or SFSP during COVID-19 operations during the regular school year 

facilitated the safe provision of meals. 
198 Section III | Other Information

In School Year (SY) 2021-2022, SFAs had the option of operating SSO or NSLP/SBP, and most SFAs 

(90 percent) chose the SSO waiver, with about 98 percent of total meals served in SY 2021-2022 under 

the SSO waiver. Program participants received free meals, and SFAs did not need to conduct eligibility 

determinations under SSO, which means certification error did not apply for SFAs that used the waiver 

in SY 2021-2022; therefore, it is not included in the error rate for FY 2022. Aggregation error, on the 

other hand, still applied as SFAs were still serving and counting meals. More information on the 

national waiver can be found on this website: Nationwide Waiver to Allow the Seamless Summer 

Option through SY 2021-2022, USDA FNS website.

Due to the operational flexibilities afforded by the waiver, data that would allow USDA to age the 

improper payment estimates are not available for FY 2022. Therefore, USDA used the aggregation 

error point estimate from the Third Access, Participation, Eligibility, and Certification Study (APEC 

III) as its measure of improper payments in NSLP and SBP. The point estimate reflects the most 

current assessment of error in the traditional NSLP/SBP programs, unaffected by temporary changes to 

the program due to COVID-19, and therefore is the most reflective rate of school meal operations in 

FY 2022. 

During FY 2022, USDA accomplished the following activities to reduce NSLP/SBP improper 

payments: 

a. Awarded 17 SAs $12.9 million in reallocated non-competitive Technology Innovation Grants 

(nTIG) funds to support State Child Nutrition Programs (CNP) information technology (IT) 

systems. SAs that received FY 2021 nTIG funds were eligible to apply for reallocation funds. 

FNS expects the overall improvement of information technology systems by nTIG recipients 

administering NSLP/SBP will improve the SA’s ability to train, monitor, provide technical 

assistance, and take corrective actions.

b. Continued work with 2019 Administrative Review and Training Grants State recipients to build 

statewide online NSLP/SBP application systems; to date, two such applications have been 

developed, and a feasibility study is in process in another State. The goal of these application 

systems is to improve the accuracy of eligibility determinations to certify children for free, 

reduced price, and paid NSLP/SBP meals through increased automation and enhanced integrity 

features of electronic NSLP/SBP meal benefit application.

RMA reported an improper payment error rate of 2.58 percent for FY 2022. The agency reported 

$304.65 million in improper payments, $289.44 million in overpayments, and $15.21 million in 

underpayments. 

COVID-19 required Approved Insurance Providers (AIPs) to implement new processes for conducting 

day-to-day operations. These unforeseen modifications presented an opportunity for less effective 

quality control processes resulting in improper payments. These types of improper payments resulted 

when the data/information needed existed, was obtained, and was used in the payment calculation; 

however, an administrative error, calculation error, or a breakdown in the quality control process 

caused the payment to become improper. 
USDA | 2022 Agency Financial Report 199

To mitigate the errors, RMA will assess AIP’s quality control processes to identify potential 

vulnerabilities as part of its annual AIP Performance Review. Identifying susceptibilities will give AIPs 

the ability to make necessary process modifications reducing the probability of improper payments due 

to errors made by AIPs, adjusters, or agents. 

RMA also saw many improper payments resulting from the inability to support production certification 

with acceptable production records. To reduce these types of improper payments, RMA’s Office of 

Compliance, in conjunction with the Underwriting Standards Branch, has collaborated to address 

production record requirements for vertically integrated or direct marketing producers. This 

collaboration will result in updates to the current FCIC policy and procedure. Addressing acceptable 

record requirements increases the probability of perennial producers supporting production 

certifications with acceptable production records thus reducing the number of improper payments. 

USDA continues to utilize DNP in its efforts to mitigate improper payments. During FY 2022, the 

average number of DNP searches increased by 8 percent from FY 2021 (109,746 to 118,064). The total 

dollar amount matched decreased by 71 percent ($48.221 million to $13.951 million), a change that 

can be attributed to the increase in funding programs received from pandemic-related assistance 

programs. The various pandemic-related assistance programs broadened USDA programs in a variety 

of ways including the amount of funding they could provide, a change in eligibility requirements, and 

other programmatic changes. 

USDA has increased its active users from 1,600 in FY 2021 to 1,780 in FY 2022. These users span five 

agencies and multiple program areas. The USDA DNP Authorizing Official (AO), in tandem with the 

Primary Local Security Administrator (PLSA), provided administrative support to programs currently 

using DNP during the pre-award, pre-payment, and post-payment phases of the payment life cycle. 

USDA has also begun the enrollment and onboarding process with two agencies, which will result in 

the potential of adding approximately 1,500 more DNP users. The enrollment process is expected to be 

completed during FY 2023. 

Annually, the Department submits data to OMB that is collected and presented on 

PaymentAccuracy.gov by an individual agency or on a Government-wide consolidated basis. This 

website contains current and historical information about improper payments made under Federal 

programs, and extensive information about how improper payments are defined and tracked. Please 

refer to the PaymentAccuracy.gov website for detailed results from the Department’s efforts in 2022 to 

comply with PIIA. 
200 Section III | Other Information

Civil Monetary Penalties

The U.S. Department of Agriculture (USDA or the Department) maintains regulations regarding civil monetary policies at Title 7 of the Code of 

Federal Regulations § 3.91. The Department reviews and updates the penalties in accordance with the Federal Civil Penalties Inflation Adjustment 

Act Improvements Act of 2015. 

Each year, the Department must update its civil monetary penalties to account for annual inflation. On February 15, 2022, the Department published 

the revised penalties for 2022 in the Federal Register. 

The following table briefly describes the penalty, under which authority it pertains, and the current penalty amounts. 

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Agricultural 

Marketing Service

Improper recordkeeping 7 U.S.C. 136i-1(d) Insecticides and 

Environmental Pesticide 

Control

5/10/2022 A maximum of $1,036 for the first 

offense and a minimum of $2,012 in 

the case of subsequent offenses, 

except that the penalty will be less 

than $2,012 if the Secretary 

determines that the person made a 

good faith effort to comply.

Agricultural 

Marketing Service

Violation of the unfair 

conduct rule

7 U.S.C. 499b(5) Perishable Agricultural 

Commodities Act

5/10/2022 Maximum of $5,638.

Agricultural 

Marketing Service

Violation of the licensing 

requirements

7 U.S.C. 499c(a) Perishable Agricultural 

Commodities Act

5/10/2022 Maximum of $1,800 for each such 

offense and not more than $449 for 

each day it continues, or a maximum 

of $449 for each offense if the 

Secretary determines the violation was 

not willful.

Agricultural 

Marketing Service

Civil penalty in lieu of 

license suspension

7 U.S.C. 499h(e) Perishable Agricultural 

Commodities Act

5/10/2022 Maximum penalty of $3,599 for each 

violative transaction or each day the 

violation continues.
USDA | 2022 Agency Financial Report 201

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Agricultural 

Marketing Service

Violation 7 U.S.C. 586 Export Apple Act 5/10/2022 Minimum of $163 and a maximum of 

$16,444.

Agricultural 

Marketing Service

Violation 7 U.S.C. 596 Export Grape and Plum Act 5/10/2022 Minimum of $314and a maximum of 

$31,465.

Agricultural 

Marketing Service

Violation of an order 

issued by the Secretary

7 U.S.C. 608c(14)(B) Agricultural Adjustment Act 5/10/2022 Maximum of $3,147. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Failure to file certain 

reports

7 U.S.C. 610 (C) Agricultural Adjustment Act 5/10/2022 Maximum of $314.

Agricultural 

Marketing Service

Violation of a seed 

program

7 U.S.C. 1596(b) Federal Seed Act 5/10/2022 Minimum of $107 and a maximum of 

$2,146.

Agricultural 

Marketing Service

Failure to collect any 

assessment or fee

7 U.S.C. 2112(b) Cotton Research and 

Promotion Act

5/10/2022 Maximum of $3,147.

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee for a violation

7 U.S.C. 2621(b)(1) Potato Research and 

Promotion Act

5/10/2022 Minimum of $1,411 and a maximum 

of $13,009.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 2621(b)(3) Potato Research and 

Promotion Act

5/10/2022 Maximum of $1,411. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program

7 U.S.C. 2714(b)(1) Egg Research and Consumer 

Information Act

5/10/2022 Minimum of $1,631 and a maximum 

of $16,308.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 2714(b)(3) Egg Research and Consumer 

Information Act

5/10/2022 Maximum of $1,631. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Failure to remit any 

assessment or fee or for a 

violation of a program

7 U.S.C. 2908(a)(2) Beef Research and 

Information Act

5/10/2022 Maximum of $12,722.

Agricultural 

Marketing Service

Failure to remit any 

assessment or for a 

violation of a program

7 U.S.C. 3410(b) Wheat and Wheat Foods 

Research

5/10/2022 Maximum of $3,147.
202 Section III | Other Information

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation

7 U.S.C. 4314(b)(1) Floral Research and 

Consumer Information Act

5/10/2022 Minimum of $1,481 and a maximum 

of $14,807.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 4314(b)(3) Floral Research and 

Consumer Information Act

5/10/2022 Maximum of $1,481. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Violation of an order 7 U.S.C. 4510(b) Dairy Promotion Program 5/10/2022 Maximum of $2,737.

Agricultural 

Marketing Service

Pay, collect, or remit any 

assessment or fee or for a 

violation

7 U.S.C. 4610(b)(1) Honey Research, Promotion, 

and Consumer Information 

Act

5/10/2022 Minimum of $822 and a maximum of 

$8,433.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 4610(b)(3) Honey Research, Promotion, 

and Consumer Information 

Act

5/10/2022 Maximum of $843. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Violation of a program 7 U.S.C. 

4815(b)(1)(A)(i)

Pork Promotion, Research, 

and Consumer Information 

Act of 1985

5/10/2022 Maximum of $2,545.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 4815(b)(3)(A) Pork Promotion, Research, 

and Consumer Information 

Act of 1985

5/10/2022 Maximum of $1,273. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program

7 U.S.C. 4910(b)(1) Watermelon Research and 

Promotion Act

5/10/2022 Minimum of $1,273 and a maximum 

of $12,722.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 4910(b)(3) Watermelon Research and 

Promotion Act

5/10/2022 Maximum of $1,273. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program

7 U.S.C. 6009(c)(1) Pecan Promotion and 

Research Act of 1990

5/10/2022 Minimum of $2,072 and a maximum 

of $20,709.
USDA | 2022 Agency Financial Report 203

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 6009(e) Pecan Promotion and 

Research Act of 1990

5/10/2022 Maximum of $2,070.

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation

7 U.S.C. 6107(c)(1) Mushroom Promotion, 

Research, and Consumer 

Information Act of 1990

5/10/2022 Minimum of $1,007 and a maximum 

of $10,066.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 6107(e) Mushroom Promotion, 

Research, and Consumer 

Information Act of 1990

5/10/2022 Maximum of $1,007. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation

7 U.S.C. 6207(c)(1) Lime Research, Promotion, 

and Consumer Information 

Act of 1990

5/10/2022 Minimum of $1,007 and a maximum 

of $10,066. 

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 6207(e) Lime Research, Promotion, 

and Consumer Information 

Act of 1990

5/10/2022 Maximum of $1,007. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program

7 U.S.C. 6307(c)(1)(A) Soybean Promotion, 

Research, and Consumer 

Information Act

5/10/2022 Maximum of $2,072.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 6307(e) Soybean Promotion, 

Research, and Consumer 

Information Act

5/10/2022 Maximum of $10,310. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation

7 U.S.C. 6411(c)(1)(A), 

7 U.S.C. 6411(c)(1)(B)

Fluid Milk Promotion Act of 

1990

5/10/2022 Minimum of $1,007 and a maximum 

of $10,066 or in the case of a violation 

that is willful, a minimum of $19,781 

and a maximum of $201,301.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 6411(e) Fluid Milk Promotion Act of 

1990

5/10/2022 Maximum of $10,360. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Knowingly labeling or 

selling a product as 

organic

7 U.S.C. 6519(c) Organic Foods Production Act 

of 1990

5/10/2022 Maximum of $20,130.
204 Section III | Other Information

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Agricultural 

Marketing Service

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program

7 U.S.C. 

6808(c)(1)(A)(i)

Fresh Cut Flowers and Fresh 

Cut Greens Promotion and 

Information Act of 1993

5/10/2022 Minimum of $949 and a maximum of 

$9,491.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 6808(e)(1) Fresh Cut Flowers and Fresh 

Cut Greens Promotion and 

Information Act of 1993

5/10/2022 Maximum of $9,491. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Violation of a program 7 U.S.C. 7107(c)(1)(A) Sheep Promotion, Research, 

and Information Act of 1994

5/10/2022 Maximum of $1,850.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 7107(e) Sheep Promotion, Research, 

and Information Act of 1994

5/10/2022 Maximum of $924. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Violation of an order or 

regulation issued

7 U.S.C. 7419(c)(1) Commodity Promotion, 

Research, and Information 

Act of 1996

5/10/2022 Minimum of $1,746 and a maximum 

of $17,472 for each violation.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 7419(e) Commodity Promotion, 

Research, and Information 

Act of 1996

5/10/2022 Minimum of $1,746 and a maximum 

of $17,472. Each day the violation 

continues is a separate violation.

Agricultural 

Marketing Service

Violation of an order or 

regulation issued

7 U.S.C. 

7448(c)(1)(A)(i)

Canola and Rapeseed 

Research, Promotion, and 

Consumer Information Act,

5/10/2022 Maximum of $1,746 for each violation.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 7448(e) Canola and Rapeseed 

Research, Promotion, and 

Consumer Information Act

5/10/2022 Maximum of $8,736. Each day the 

violation continues is a separate 

violation.

Agricultural 

Marketing Service

Violation of an order or 

regulation issued

7 U.S.C. 7468(c)(1) National Kiwifruit Research, 

Promotion, and Consumer 

Information Act

5/10/2022 Minimum of $874 and a maximum of 

$8,736 for each violation.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 7468(e) National Kiwifruit Research, 

Promotion, and Consumer 

Information Act

5/10/2022 Maximum of $874. Each day the 

violation continues is a separate 

violation.
USDA | 2022 Agency Financial Report 205

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Agricultural 

Marketing Service

Violation of an order or 

regulation

7 U.S.C. 7487(a) Popcorn Promotion, 

Research, and Consumer 

Information Act

5/10/2022 Maximum of $1,746 for each violation.

Agricultural 

Marketing Service

Violation 21 U.S.C. 

1041(c)(1)(A)

Egg Products Inspection Act 5/10/2022 Maximum of $10,066 for each 

violation.

Agricultural 

Marketing Service

Violation of an order or 

regulation issued

7 U.S.C. 

7807(c)(1)(A)(i)

Hass Avocado Promotion, 

Research, and Information 

Act of 2000

5/10/2022 Minimum of $1,588 and a maximum 

of $15,880 for each violation.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 7807(e)(1 Hass Avocado Promotion, 

Research, and Information 

Act of 2000

5/10/2022 Maximum of $15,896 for each offense. 

Each day the violation continues is a 

separate violation.

Agricultural 

Marketing Service

Violation of certain 

provisions

7 U.S.C. 1636b(a)(1) Livestock Mandatory 

Reporting Act of 1999

5/10/2022 Maximum of $16,444 for each 

violation.

Agricultural 

Marketing Service

Failure to obey a ceaseand-desist order7 U.S.C. 1636b(g)(3) Livestock Mandatory 

Reporting Act of 1999

5/10/2022 Maximum of $16,444 for each 

violation. Each day the violation 

continues is a separate violation.

Agricultural 

Marketing Service

Failure to obey an order 7 U.S.C. 

1637b(c)(4)(D)(iii)

Dairy Product Mandatory 

Reporting Program

5/10/2022 Maximum of $15,896 for each offense.

Agricultural 

Marketing Service

Willful violation 7 U.S.C. 1638b(b)(2) Country of Origin Labeling 

Program

5/10/2022 Maximum of $1,277 for each violation.

Agricultural 

Marketing Service

Violation 7 U.S.C. 4535 and 

4510(b)

Dairy Research Program 5/10/2022 Maximum of $2,737 for each violation.

Agricultural 

Marketing Service

Violation by a packer or 

swine contractor

7 U.S.C. 193(b) Packers and Stockyards 5/10/2022 Maximum of $31,459.

Agricultural 

Marketing Service

Failure for a livestock 

market agency or dealer to 

register

7 U.S.C. 203 Packers and Stockyards 5/10/2022 Maximum of $2,145 and not more 

than $107 for each day the violation 

continues.

Agricultural 

Marketing Service

Operating without filing, 

or in violation of, a 

stockyard rate schedule or 

of a regulation

7 U.S.C. 207(g) Packers and Stockyards 5/10/2022 Maximum of $2,146 and not more 

than $107 for each day the violation 

continues.
206 Section III | Other Information

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Agricultural 

Marketing Service

Stockyard owner, livestock 

market agency, or dealer 

who engages in or uses 

any unfair, unjustly 

discriminatory, or 

deceptive practice

7 U.S.C. 213(b) Packers and Stockyards 5/10/2022 Maximum of $31,459.

Agricultural 

Marketing Service

Stockyard owner, livestock 

market agency, or dealer 

who knowingly fails to 

obey any order

7 U.S.C. 211, 212, or 

213, codified at 

7 U.S.C. 215(a)

Packers and Stockyards 5/10/2022 Maximum of $2,146.

Agricultural 

Marketing Service

Live poultry dealer 

violations

7 U.S.C. 228b-2(b) Packers and Stockyards 5/10/2022 Maximum of $91,517.

Agricultural 

Marketing Service

Violation 7 U.S.C. 86(c) Grain Standards 5/10/2022 Maximum of $307,438.

Agricultural 

Marketing Service

Failure to comply with 

certain provisions

7 U.S.C. 254 U.S. Warehouse Act 5/10/2022 Maximum of $39,740 per violation if 

an agricultural product is not involved 

in the violation.

Animal and Plant 

Health Inspection 

Service

Violation 7 U.S.C. 1596(b) Federal Seed Act 5/10/2022 Minimum of $107 and a maximum of 

$2,146.

Animal and Plant 

Health Inspection 

Service

Violation 7 U.S.C. 2149(b) Animal Welfare Act 5/10/2022 Maximum of $12,771, and knowingly 

fail to obey a cease-and-desist order 

has a civil penalty of $1,915.

Animal and Plant 

Health Inspection 

Service

Penalty for any person 

that causes harm to, or 

interferes with, an animal 

used for the purposes of 

official inspection by USDA

7 U.S.C. 2279e(a) Farming Opportunities 

Training and Outreach

5/10/2022 Maximum of $15,896.

Animal and Plant 

Health Inspection 

Service

Violation 7 U.S.C. 3805(a) Swine Health Protection Act 5/10/2022 Maximum of $31,948.
USDA | 2022 Agency Financial Report 207

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Animal and Plant 

Health Inspection 

Service

Penalty for any person 

that violates or that 

forges, counterfeits, or, 

without authority from the 

Secretary, uses, alters, 

defaces, or destroys any 

certificate, permit, or 

other document

7 U.S.C. 7734(b)(1) Plant Protection Act (PPA) 5/10/2022 Maximum of the greater of: $79,480 in 

the case of any individual (except that 

the civil penalty may not exceed 

$1,589 in the case of an initial 

violation of the PPA by an individual 

moving regulated articles not for 

monetary gain), $397,397 in the case 

of any other person for each violation, 

$638,556 for all violations adjudicated 

in a single proceeding if the violations 

do not include a willful violation, and 

$1,277,111 for all violations 

adjudicated in a single proceeding if 

the violations include a willful 

violation; or twice the gross gain or 

gross loss for any violation, forgery, 

counterfeiting, unauthorized use, 

defacing, or destruction of a 

certificate, permit, or other document 

provided for in the PPA that results in 

the person deriving pecuniary gain or 

causing pecuniary loss to another 

person.
208 Section III | Other Information

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Animal and Plant 

Health Inspection 

Service

Penalty for any person 

that violates or that 

forges, counterfeits, or, 

without authority from the 

Secretary, uses, alters, 

defaces, or destroys any 

certificate, permit, or 

other document

7 U.S.C. 8313(b)(1) Animal Health Protection Act 

(AHPA)

5/10/2022 Maximum of the greater of $76,279 in 

the case of any individual, except that 

the civil penalty may not exceed 

$1,526 in the case of an initial 

violation of the AHPA by an individual 

moving regulated articles not for 

monetary gain, $381,394 in the case of 

any other person for each violation, 

$638,556 for all violations adjudicated 

in a single proceeding if the violations 

do not include a willful violation, and 

$1,277,111 for all violations 

adjudicated in a single proceeding if 

the violations include a willful 

violation; or twice the gross gain or 

gross loss for any violation, forgery, 

counterfeiting, unauthorized use, 

defacing, or destruction of a 

certificate, permit, or other document 

provided under the AHPA that results 

in the person deriving pecuniary gain

or causing pecuniary loss to another 

person.

Animal and Plant 

Health Inspection 

Service

Penalty for any person 

that violates certain 

regulations regarding 

transfers of listed agents 

and toxins or possession 

and use of listed agents 

and toxins

7 U.S.C. 8401(i)(1) Agricultural Bioterrorism 

Protection Act of 2002

5/10/2022 Maximum of $381,394 in the case of 

an individual and $762,791 in the case 

of any other person.

Animal and Plant 

Health Inspection 

Service

Violation 15 U.S.C. 1825(b)(1) Horse Protection Act 5/10/2022 Maximum of $6,294.
USDA | 2022 Agency Financial Report 209

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Animal and Plant 

Health Inspection 

Service

Failure to obey Horse 

Protection Act 

disqualification

15 U.S.C. 1825(c) Horse Protection Act 5/10/2022 Maximum of $12,299.

Animal and Plant 

Health Inspection 

Service

Knowingly violating, or, if 

in the business as an 

importer or exporter, 

violating, with respect to 

terrestrial plants, any 

provision

16 U.S.C. 1540(a)(1), 

section 9(a)(1)(A) 

through (F), (a)(2)(A) 

through (D), (c), (d) 

(other than 

regulations relating 

to record-keeping or 

filing reports), (f), or 

(g)

Endangered Species Act of 

1973

5/10/2022 Maximum of $57,528 for each 

violation.

Animal and Plant 

Health Inspection 

Service

Knowingly violating, or, if 

in the business as an 

importer or exporter, 

violating, with respect to 

terrestrial plants, any 

other regulation

16 U.S.C. 1540(a)(1) Endangered Species Act of 

1973

5/10/2022 Maximum of $27,549 for each 

violation.

Animal and Plant 

Health Inspection 

Service

Violating, with respect to 

terrestrial plants or any 

regulation, permit, or 

certificate

16 U.S.C. 1540(a)(1) Endangered Species Act of 

1973

5/10/2022 Maximum of $1,452 for each violation.

Animal and Plant 

Health Inspection 

Service

Knowingly and willfully 

violating with respect to 

the transportation of 

animals by any rail carrier, 

express carrier, or 

common carrier (except by 

air or water), a receiver, 

trustee, or lessee of one of 

those carriers, or an owner 

or master of a vessel

49 U.S.C. 80502(d) Transportation of Animals 5/10/2022 Minimum of $181 and a maximum of 

$924.
210 Section III | Other Information

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Animal and Plant 

Health Inspection 

Service

Violation and its 

implementing regulation

7 U.S.C. 1901 note, as 

specified in 

9 Code of Federal 

Regulations (CFR) 

88.6

Commercial Transportation of 

Equine for Slaughter Act

5/10/2022 Maximum of $5,468. Each horse 

transported is a separate violation.

Animal and Plant 

Health Inspection 

Service

Knowingly violating or for 

violating any other 

provision provided that, in 

the exercise of due care, 

the violator should have 

known that the plant was 

taken, possessed, 

transported, or sold in 

violation of any underlying 

law, treaty, or regulation

16 U.S.C. 3373(a)(1) Lacey Act Amendments of 

1981

5/10/2022 Maximum of $28,606 for each 

violation, as specified in 16 U.S.C. 

3373(a)(1) (but if the plant has a 

market value of less than $382 and 

involves only the transportation, 

acquisition, or receipt of a plant taken 

or possessed in violation of any law, 

treaty, or regulation of the United 

States, any Indian tribal law, any 

foreign law, or any law or regulation of 

any State, the penalty will not exceed 

the maximum provided for violation of 

said law, treaty, or regulation, or 

$28,606, whichever is less).

Animal and Plant 

Health Inspection 

Service

Violation 16 U.S.C. 3373(a)(2) Lacey Act Amendments of 

1981

5/10/2022 Maximum of $715.

Food and Nutrition 

Service

Violating a provision or a 

regulation under the Act 

by a retail food store or 

wholesale food concern

7 U.S.C. 2021(a) and 

(c)

Food and Nutrition Act of 

2008 (Act)

5/10/2022 Maximum of $127,712 for each 

violation.

Food and Nutrition 

Service

Trafficking in food coupons 7 U.S.C. 2021(b)(3)(B) Food and Nutrition Act of 

2008 (Act)

5/10/2022 Maximum of $46,021 for each 

violation, except that the maximum 

penalty for violations occurring during 

a single investigation is $82,871.
USDA | 2022 Agency Financial Report 211

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Food and Nutrition 

Service

Sale of firearms, 

ammunition, explosives, or 

controlled substances for 

coupons

7 U.S.C. 2021(b)(3)(C) Food and Nutrition Act of 

2008 (Act)

5/10/2022 Maximum of $41,436 for each 

violation except that the maximum 

penalty for violations occurring during 

a single investigation is $82,871.

Food and Nutrition 

Service

Any entity that submits a 

bid to supply infant 

formula and discloses the 

amount of the bid, rebate, 

or discount practices in 

advance of the bid 

opening or for any entity 

that makes a statement 

prior to the opening of 

bids for the purpose of 

influencing a bid

42 U.S.C. 

1786(h)(8)(H)(i)

Special Supplemental 

Nutrition Program for 

Women, Infants, and Children

5/10/2022 Maximum of $195,054,878.

Food and Nutrition 

Service

Vendor convicted of 

trafficking in food 

instruments

42 U.S.C. 

1786(o)(1)(A) and 42 

U.S.C. 1786(o)(4)(B)

Special Supplemental 

Nutrition Program for 

Women, Infants, and Children

5/10/2022 Maximum of $16,865 for each 

violation, except that the maximum 

penalty for violations occurring during 

a single investigation is $67,461.

Food and Nutrition 

Service

Vendor convicted of selling 

firearms, ammunition, 

explosives, or controlled 

substances in exchange for 

food instruments

42 U.S.C. 

1786(o)(1)(B) and 42 

U.S.C. 1786(o)(4)(B)

Special Supplemental 

Nutrition Program for 

Women, Infants, and Children

5/10/2022 Maximum of $16,451 for each 

violation, except that the maximum 

penalty for violations occurring during 

a single investigation is $67,461.

Food Safety and 

Inspection Service

Violation 21 U.S.C. 

1041(c)(1)(A)

Egg Products Inspection Act 5/10/2022 Maximum of $10,066 for each 

violation.

Forest Service Willful disregard of the 

prohibition against the 

export of unprocessed 

timber originating from 

Federal lands

16 U.S.C. 

620d(c)(1)(A)

Federal Lands 5/10/2022 Maximum of $1,035,909 per violation 

or three times the gross value of the 

unprocessed timber, whichever is 

greater.
212 Section III | Other Information

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Forest Service Violation 16 U.S.C. 

620d(c)(2)(A)(i)

Forest Resources 

Conservation and Shortage 

Relief Act

5/10/2022 Maximum of $155,387 per violation.

Forest Service Penalty for a person that 

should have known that an 

action was a violation 

regardless of whether such 

violation caused the 

export of unprocessed 

timber originating from 

Federal lands

16 U.S.C. 

620d(c)(2)(A)(ii),

Forest Resources 

Conservation and Shortage 

Relief Act

5/10/2022 Maximum of $103,591 per violation.

Forest Service Willful violation 16 U.S.C. 

620d(c)(2)(A)(iii)

Forest Resources 

Conservation and Shortage 

Relief Act

5/10/2022 Maximum of $1,035,909.

Forest Service Violation involving 

protections of caves

16 U.S. C. 4307(a)(2) Federal Cave Resources 

Protection

5/10/2022 Maximum of $22,640.

Federal Crop 

Insurance 

Corporation

Willfully and intentionally 

providing any false or 

inaccurate information

7 U.S.C. 1515(h)(3)(A) Federal Crop Insurance Act 5/10/2022 Maximum of the greater of the 

amount of the pecuniary gain 

obtained as a result of the false or 

inaccurate information or the 

noncompliance; or $13,437.

Rural Housing 

Service

Violation of section 536 of 

Title V of the Housing Act 

of 1949

42 U.S.C. 1490p(e)(2) Housing Act of 1949 5/10/2022 Maximum of $220,212 in the case of 

an individual, and a maximum of 

$2,202,123 in the case of an applicant 

other than an individual.

Rural Housing 

Service

Penalty for equity 

skimming

42 U.S.C. 1490s(a)(2) Housing Act of 1949 5/10/2022 Maximum of $39,740.
USDA | 2022 Agency Financial Report 213

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Rural Housing 

Service

Submitting false 

information, submitting 

false certifications, failing 

to timely submit 

information, failing to 

maintain real property in 

good repair and condition, 

failing to provide 

acceptable management 

for a project, or failing to 

comply with applicable 

civil rights laws and 

regulations

42 U.S.C. 

1490s(b)(3)(A)

Housing Act of 1949 5/10/2022 Maximum of the greater of twice the 

damages USDA, guaranteed lender, or 

project secured for a loan under Title 

V suffered or would have suffered as a 

result of the violation; or $79,480 per 

violation.

Commodity Credit 

Corporation

Penalty for willful failure 

or refusal to furnish 

information or willful 

furnishing of false 

information under Section 

156

7 U.S.C. 7272(g)(5) Federal Agricultural 

Improvement and Reform Act 

of 1996

5/10/2022 Maximum of $17,472 for each 

violation.

Commodity Credit 

Corporation

Willful failure or refusal to 

furnish information or 

willful furnishing of false 

data by a processor, 

refiner, or importer of 

sugar, syrup, and molasses

7 U.S.C. 7272(g)(5) Federal Agriculture 

Improvement and Reform Act 

of 1996

5/10/2022 Maximum of $17,472 for each 

violation.

Commodity Credit 

Corporation

Filing a false acreage 

report that exceeds 

tolerance

7 U.S.C. 7272(g)(5) Federal Agriculture 

Improvement and Reform Act 

of 1996

5/10/2022 Maximum of $17,472 for each 

violation.
214 Section III | Other Information

Program Office

Penalty 

(Name of Penalty)

United States Code 

(U.S.C.) Citation

Statutory Authority; Positive 

Law and Section Authority 

(Statute)

Date of 

Current 

Adjustment

Current Penalty Level 

($ Amount)

Commodity Credit 

Corporation

Knowingly violating any 

regulation of the Secretary 

of the Commodity Credit 

Corporation pertaining to 

flexible marketing 

allotments for sugar

7 U.S.C. 1359hh(b) Agricultural Adjustment Act 

of 1938

5/10/2022 Maximum of $12,771 for each 

violation.

Commodity Credit 

Corporation

Knowingly violating 

regulations promulgated 

by the Secretary 

pertaining to cotton insect 

eradication

7 U.S.C. 1444a(d) Agricultural Act of 1949 5/10/2022 Maximum of $15,733 for each offense.

Office of the 

Secretary

Making, presenting, 

submitting, or causing to 

be made, presented, or 

submitted a false, 

fictitious, or fraudulent 

claim

31 U.S.C. 3802(a)(1) Program Fraud Civil Remedies 

Act of 1986

5/10/2022 Maximum of $12,538.

Office of the 

Secretary

Making, presenting, 

submitting, or causing to 

be made, presented, or 

submitted a false, 

fictitious, or fraudulent 

written statement

31 U.S.C. 3802(a)(2) Program Fraud Civil Remedies 

Act of 1986

5/10/2022 Maximum of $12,538.
USDA | 2022 Agency Financial Report 215

Grants Program

Pursuant to the Office of Management and Budget (OMB) Uniform Guidance in Section 200.344(a) of 

Part 2 of the Code of Federal Regulations (CFR), recipients of grants and cooperative agreements must 

submit final reports and liquidate all obligations incurred under their awards within 120 days after the 

end of the period of performance, unless the federal awarding department or agency authorizes an 

extension, or program-specific statutes specify a different liquidation period.

Exhibit 23 shows that the U.S. Department of Agriculture (USDA or the Department) has 

251 grants/cooperative agreements with an undisbursed balance of $11,116,646.65 for which closeout 

has not yet occurred, but for which the period of performance has elapsed by 2 years or more prior to 

September 30, 2020. 

Exhibit 23: Fiscal Year 2022 Grants Program Summary

Category 2–3 Years >3–5 Years >5 Years

Number of Grants/Cooperative Agreements with Zero 

Dollar Balances

8 2 13

Number of Grants/Cooperative Agreements with 

Undisbursed Balances

152 40 36

Total Amount of Undisbursed Balances $2,138,386.58 $6,891,077.68 $2,087,182.39

USDA made progress compared with the baseline of Fiscal Year (FY) 2020. There were net reductions 

of 97 percent on the number of grants/cooperative agreements with zero-dollar balances and 90 percent 

on the number of grants/cooperative agreements with undisbursed balances. In FY 2022, USDA 

attained a total net reduction of 92 percent from the number of grants/cooperative agreements reported 

in FY 2020. 

USDA faces several challenges leading to delayed grant agreement award closeout, including:

• Timely receipt of the financial and accomplishment reports for the completion of closeout 

reports from grantees; 

• Program Manager and Grant Specialist turnover; 

• Delays in compliance reviews and pending audits during the award period; 

• Delays in receipts of final vouchers from recipients; 

• Awaiting litigation and cannot be close until the judicial system authorizes the agency to close; 

• Administrative challenges related to finalizing rates and budget line-item agreements; and

• Delays in the resolution of audits by grant recipients. 

Each USDA grant-making agency continues to review outstanding grants/cooperative agreements and 

monitor open balances through the Agency’s quarterly Unliquidated Obligations review for appropriate 

closeout actions. The grant-making agencies’ accountable officers continue their closeout of 

grants/cooperative agreements efforts and continuous communication with the recipients of USDA 

funds to ensure compliance with requirements of Title 2 CFR Part 200 and better management of 

Federal Funds. 
216 Section III | Other Information

Climate-Related Financial Risk

The U.S. Department of Agriculture (USDA or the Department) issued the following Climate-Related 

Action Plans during fiscal year (FY) 2022: 

USDA’s Action Plan for Climate Adaptation and Resilience 

USDA Agency-Level Climate Adaptation Plans prepared by: 

• Natural Resources Conservation Service

• Farm Service Agency

• Risk Management Agency

• Agricultural Marketing Service

• Animal and Plant Health Inspection Service 

• Forest Service

• Rural Development 

• Agricultural Research Service

• National Institute of Food and Agriculture 

• National Agricultural Statistics Service

• Economic Research Service

• Foreign Agricultural Service

• Select staff offices including the Office of the Chief Economist, the Office of Budget and 

Program Analysis, the Office of Property and Environmental Management, and the Office of 

Homeland Security

USDA’s Action Plan for Climate Adaptation and Resilience: 2022 Progress Report
USDA | 2022 Agency Financial Report 217

Agency Audits Resolution Report

Background

The Inspector General (IG) Act Amendments of 1988 (Public Law [P.L.] 100–504; IG Act 

Amendments) require that each agency head submit semi-annual reports to Congress on actions taken 

in response to the Office of Inspector General (OIG) audit, evaluation, and inspection reports. 

Consistent with the Reports Consolidation Act of 2000 (P.L. 106–531), the U.S. Department of 

Agriculture (USDA or the Department) Office of the Chief Financial Officer (OCFO) consolidates, 

annualizes, and includes the required semi-annual IG Act Amendments’ reporting elements in the 

annual Agency Financial Report.

OIG audits USDA’s programs, systems, and operations and recommends improvements to 

management based on its findings. USDA management may agree or disagree with the audit’s findings 

or recommendations. When management agrees with recommendations in an audit, it submits a written 

plan for corrective action and an estimated target completion date to the OIG for concurrence. If OIG 

and management agree that the proposed corrective action will address the finding, the “management 

decision” process is concluded for that recommendation. The memo outlining the terms of the 

management decision between management and OIG is retained for audit follow-up purposes. 

USDA’s OCFO oversees audit follow-up for the Department and ensures that management takes 

prompt and responsive action to address OIG findings and audits. As USDA completes corrective 

actions relative to the management decision, it submits documentation as “final action” to OCFO to 

complete the review process. OCFO reviews the submitted documentation and determines whether 

USDA provided adequate support for the completion of corrective actions agreed to in the management 

decision. If confirmed, OCFO “closes” the recommendation. An audit remains open until all corrective 

actions for each recommendation are completed.

Fiscal Year Results

As of September 29, 2022, USDA agencies closed 26 audits during fiscal year (FY) 2022. OIG and 

USDA agencies also reached management decisions on 19 audits. As shown in the following exhibit, 

the Department’s inventory of open audits decreased in FY 2022 by 38 percent, from 112 to 69.3

3 This report and information was generated on 09/29/2022.
218 Section III | Other Information

Exhibit 24: Open Audit Inventory

Audit Follow-Up Process

The IG Act Amendments require an annual report to Congress providing the status of resolved audits 

that remain open. Resolved audits are those where a management decision has been reached for all 

recommendations. Reports on resolved audits must include the elements listed in the following bullet 

points (see Exhibit 25 for definitions): 

• Beginning and ending balances for the number of audit reports and dollar value of disallowed

costs (DC) and Funds to Be Put to Better Use (FTBU);

• The number of new management decisions reached;

• The disposition of DC and FTBU of audits with final action (for example: accounts receivables,

cash collections, agency offsets, write-offs); and

• Resolved audits that remain open 1 year or more past the management decision date require

additional reporting elements. These elements include the date issued, the revised estimated

completion date, the original dollar value of DC or FTBU, and an explanation as to why the

final action has not been completed.

Open Audit Inventory

100

80

88

112

69

2018 2019 2020 2021 2022
USDA | 2022 Agency Financial Report 219

Exhibit 25: Audit Follow-Up Definitions

Term Definition

DC 

An incurred cost questioned by the OIG that management agreed should not be chargeable 

to the Government.

Final Action Actions that management has taken to address the audit findings and recommendations.

FTBU

An OIG recommendation that funds could be used more efficiently if management completes 

the recommendation. This recommendation includes:

a. Reductions in outlays or other savings;

b. De-obligation of funds from programs or operations;

c. The withdrawal of subsidy costs on loans, guarantees, or bonds; and

d. Implementation of recommended improvements for grants or contracts, or unnecessary 

expenditures noted in pre-award reviews of contracts or grant agreements.

Management 

Decision

Agreement between management and OIG on the corrective action needed to address audit 

findings and recommendations.

Beginning and Ending Inventory for Audits with DC and FTBU

Of the 24 audits that achieved final action during the fiscal year, nine contained DC. The number of 

audits with DC remaining in the inventory at the end of the fiscal year was 24, with an outstanding 

balance of $60,938,903 (see Exhibit 26). For DC audits that achieved final action in FY 2022, OIG and 

management agreed to collect $888,920. Five of the audits in the outstanding balance are audits that 

previously had a recommendation(s) with DC that were closed; balances from these recommendations 

will be removed once the agency closes the remaining recommendations for the audit. 

Exhibit 26: Inventory of Audits with DC4

Audits with DC # of Audits Amount ($)

Beginning of the Period (October 1, 2021) 32 $ 79,918,583

Plus: New Management Decisions 1 $ 7,992

Total Audits Pending Collection of DC 33 $ 79,926,575

Less: Adjustments $ 18,423,711

Revised Subtotal $ 61,502,864

Less: Final Actions (Recoveries)[1] 9 $ 888,920

Audits with DC Requiring Final Action at the End of the Period 

(September 30,2022)

24 $ 60,613,944

*Exhibits 26 and 27 include only those open audits with DC and FTBU, respectively. In addition, some audits 

contain both DC and FTBU amounts. For this reason, the number of audits shown as the ending balances in 

Exhibits 26 and 27 does not equal the total resolved audit inventory balance in Exhibit 24.

[1] This total only includes audits with an Audit Agreed Amount DC, where the entire audit has been closed. 

There were five audits with DC that had no outstanding DC balance but were still open audits. The final action 

sum is taken from the applied amount for only the audits that closed in FY 2022.

4 This exhibit was generated on 09/28/22.
220 Section III | Other Information

Final action occurred on two audits that involved FTBU amounts totaling $4,198,052. Three FTBU 

audits remain in the inventory as of September 30, 2022, with an outstanding audit amount of 

$204,591,460. (See Exhibit 27). 

Exhibit 27: Inventory of Audits with FTBU5

Audits with FTBU # of Audits Amount ($)

Beginning of the Period (October 1, 2021) 5 $ 209,082,082

Plus: New Management Decisions 0 $ 0 

Total Audits Pending 5 $ 209,082,082

Less: Adjustments[1] $ 292,570

Less: Final Actions 2 $ 4,198,052

Audits with FTBU Requiring Final Action at the End of the Period 

(September 30, 2022)[2] 3 $ 204,591,460

Disposition of FTBU:

FTBU Implemented 1 $ 6,297,441

FTBU Not Implemented 0 $ 0 

Total FTBU Amounts for Final Action Audits 1 $ 6,297,441

*Exhibits 26 and 27 include only those open audits with DC and FTBU, respectively. In addition, some audits 

contain both DC and FTBU amounts. For this reason, the number of audits shown as the ending balances in 

Exhibits 26 and 27 does not equal the total resolved audit inventory balance in Exhibit 24.

[1] New: The adjustments consider findings with an FTBU balance that has closed, despite the fact that the 

audit remains open. The audit that was affected was 03601-0012-AT, with finding numbers 259763 and 

259765. 

[2] This number contains the three audits that are still open and contain recommendations with FTBU agreedupon amounts. However, one audit, in this tally (Audit 03601-0012-AT) has an Audit (FTBU) balance of $0.

The number of audits open for more than 1 year at the beginning of FY 2022 decreased from the 

previous fiscal year from 57 to 53. During FY 2022 sixteen audits became 1-year-after-Managment 

Decision Date (MDD). Of those 3 closed and the ending inventory includes the remaining 13 audits 

that became 1-year-after-MDD during FY 2022. These audits were offset by the 20 audits that were 

previously 1-year-after-MDD but closed during FY 2022. USDA agencies continue to pursue 

remediation and/or compensating controls to address many of the underlying issues identified in 

these audits.

5 This exhibit was generated on 09/28/22.
USDA | 2022 Agency Financial Report 221

The number of audits open 1 or more years after the MDD remains the same this year as the previous 

year (see Exhibit 28). 

Exhibit 28: The Number of Audits Open 1 or More Years After MDD6

Audits 1 Year or More After MDD # of Audits

Beginning of the period* 57

Plus: Audits that reached 1 year after MDD during FY 2022** 16

Subtotal FY 2022 audits 1 year or more after MDD 73

Less: Audits closed 21

Ending balance as of September 30, 2022 52

*Agencies have completed planned corrective actions with the exception of 15 audits under collection for DC 

and the resolution of FTBU amounts. Three audits are on schedule for completion. (See Exhibit 29).

** Audits that will become 1 year after MDD on or before September 30, 2022, are included in this tally. 

Exhibit 29: Distribution of Audits Open 1 Year or More After MDD[1] 7

Audits on Schedule Audits Behind Schedule Audits Under Collection

# DC ($) FTBU ($) # DC ($) FTBU ($) # DC ($) FTBU ($)

0 $0 $0 40 $1,045,519 $197,891,460 13* $16,553,465 $0

DC = Disallowed Cost. FTBU = Funds to be Put to Better Use.

*Audit 10601-0004-31 is listed in both the Under Collections and Behind Schedule columns. The total number 

of Audits Open 1 Year or More After MDD is 52, consistent with Exhibit 28. The total DC value is consistent 

with the total in Exhibit 30.

[1] The sum of the value of the audits is the total sum of the Audit Balance, or what is still outstanding to be 

collected. 

6 This exhibit was generated on 09/28/22

7 This exhibit was generated on 9/28/22
222 Section III | Other Information

Management’s Report on Audit Follow-Up

Audits without Final Action 1 year or more after MDD (excluding collections) as of 9/30/2022 are/were behind schedule and listed individually in 

Exhibit 30. The audits are categorized by agency and the reason why final action has not occurred. Audits that reached Final Action between 10/1/2022 

and the issuance of this report are noted in the Reason Pending column. 

Exhibit 30: Audits Open 1 Year or More After MDD and Behind Schedule

Animal and Plant Health Inspection Service (APHIS)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

50601-0001-32 09/22/2015 12/31/2022 Controls Over APHIS’s Introduction of 

Genetically Engineered Organisms $0 $0 Receipt and/or processing of Final Action Documentation; Administrative Action

50701-0001-21 09/12/2018 11/30/2022 USDA Agency Activities for Agroterrorism 

Prevention, Detection, and Response $0 $0 Issuance of Policy/Guidance

33701-0001-21 09/23/2020 12/31/2022 National Veterinary Stockpile Oversight $0 $0

Receipt and/or processing of Final Action 

Documentation; Results of internal 

monitoring or program review

33601-0003-23 03/12/2021 12/31/2022 Follow-up to APHIS’s Controls Over 

Licensing of Animals $0 $0 Issuance of policy/guidance; Results of internal monitoring or program review

33601-0002-31 06/30/2021 1/31/2023 Animal Care Program Oversight of Dog 

Breeders $0 $0 Issuance of Policy/Guidance; Review of internal monitoring or program review

33601-0004-23 9/29/2021 11/30/2022 Follow-up on Smuggling Interdiction and 

Trade Compliance Program $0 $0 Issuance of Policy/Guidance

APHIS Subtotal (6) $0 $0

Farm Production and Conservation-Business Center (FPAC-BC)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

10801-0001-12 3/30/2020 12/31/2022

Review of a Natural Resources 

Conservation Service (NRCS) Information 

Technology (IT)-Related Contract

$0 $0 Issuance of Policy/Guidance

FPAC-BC Subtotal (1) $0 $0
USDA | 2022 Agency Financial Report 223

Food and Nutrition Service (FNS)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

27004-0003-21 3/14/2019 11/30/2022 Summer Food Service Program in Texas 

Sponsor Costs $0 $0 Administrative Action

27004-0004-21 3/14/2019 5/31/2023 Texas Controls Over Summer Food Service 

Program $201 $0

Issuance of Policy/Guidance; 

Receipt and/or processing of Final 

Action Documentation

27601-0001-31 7/31/2013 12/15/2022 FNS Control for Authorizing Supplemental 

Nutrition Assistance Program Retailers $0 $(6,700,000)

Receipt and/or processing of Final 

Action Documentation; Results for 

Change in Management Decision. 

27601-0002-41 9/23/2015 8/31/2022 FNS Quality Control Process for SNAP Error 

Rate $0 $0 Final Actions Completed on 10/14/2022

27601-0003-10 09/27/2016 12/31/2022

New Mexico’s Compliance with SNAP 

Certification of Eligible Households 

Requirements

$9,621 $0 Receipt and/or processing of Final 

Action 

27601-0005-41 9/18/2020 09/30/2023

Consolidated Report on FNS and Selected 

State Agencies Control Over the Summer 

Food Service Program (SFSP)

$0 $6,089,279

Issuance of Policy/Guidance; 

Receipt and/or processing of Final 

Action Documentation; 

Administrative Action

27601-0010-10 08/09/2017 11/30/2022

Pennsylvania’s Compliance with SNAP 

Requirements for Participating State 

Agencies (7 Code of Federal Regulations 

(CFR), Part 272)

$0 $0

Issuance of Policy/Guidance; 

Receipt and/or Processing of Final 

Action Documentation

27601-0011-10 09/14/2017 11/30/2022

South Carolina’s Compliance with SNAP 

Requirements for Participating State 

Agencies (7 CFR, Part 272)

0 $0

Issuance of Policy/Guidance; 

Receipt and/or processing of Final 

Action Documentation

27601-0013-10 12/19/2017 12/31/2022

Compilation Report of States’ Compliance 

with SNAP Requirements for Participating 

State Agencies (7 CFR, Part 272)

$0 $0 Issuance of Policy/Guidance

27601-0019-10 9/28/2018 11/30/2023

Compilation Report of States’ Compliance 

with Requirements for the Issuance and Use 

of Supplemental Nutrition Assistance 

Program Benefits

$0 $0 Administrative Action

27702-0001-22 10/18/2019 12/31/2022 Review of FNS Nutrition Assistance Program 

Providing Disaster Funding to Puerto Rico $1,258,308 $0 Administrative Action
224 Section III | Other Information

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

27801-0001-21(1) 8/24/2021 12/15/2022

Coronavirus Disease 2019 (COVID-19)—

Oversight of the Emergency Food Assistance 

Program-Interim Report 27801-0001-2 

$0 $0 Administrative Action

27801-0003-22 8/25/2021 1/31/2023

COVID 19 - Supplemental Nutrition 

Assistance Program Online Purchasing in 

Response to the Coronavirus Disease 2019

$0 $0 Administrative Action

FNS Subtotal (13) $1,268,130 $(610,721)

Farm Service Agency (FSA)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

03601-0001-22 07/31/2014 12/30/2022 Compliance Activities $0 $0 Issuance of Policy/Guidance

50601-0003-22 01/27/2017 12/30/2022

Coordination of USDA Farm 

Program Compliance—FSA, Risk 

Management Agency, and Natural 

Resource Conservation Service

$0 $0 Receipt and/or processing of Final Action 

Documentation

03601-0003-31(1) 09/30/2020 12/31/2022 Market Facilitation Program – 

Interim Report $0 $0 Issuance of Policy/Guidance; Receipt and/or processing of final action documentation

FSA Subtotal (3) $0 $0

Food Safety and Inspection Service (FSIS)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

24016-0001-23 02/18/2017 3/31/2023 FSIS Follow-up on the 2007 and 

2008 Audit Initiatives $0 $0 Issuance of Policy/Guidance

FSIS Subtotal (1) $0 $0
USDA | 2022 Agency Financial Report 225

National Institute of Food and Agriculture (NIFA)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

13601-0001-22 08/07/2019 12/30/2022 NIFA Formula Grant Programs Controls 

Over Fund Allocations to States $0 $0 Issuance of Policy/Guidance

NIFA subtotal (1) $0 $0

Natural Resources Conservation Service (NRCS)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

10099-0001-23 9/11/2018 12/31/2022 Controls Over Conservation 

Innovation Grants $1,271,659 $0 Results of Internal Monitoring or Program Review

10403-0003-11 11/19/2020 12/28/2022

Natural Resources Conservation 

Service’s Financial Statements for 

Fiscal Years 2020 and 2021

$0 $0 Results of Internal Monitoring or 

Program Review

10601-0004-31 6/28/2018 12/31/2022 NRCS Regional Conservation 

Partnership Program Controls $33,005 $0 Administrative Action

10601-0004-31(2) 11/13/2017 12/30/2022 NRCS Regional Conservation 

Partnership Program Controls $267,410 $0 Receipt and/or Processing of Final Action Documentation

10702-0001-23 6/25/2021 3/30/2023

Hurricane Disaster AssistanceEmergency Watershed Protection 

Program

$41,245,287 $198,502,181

Issuance of Policy/Guidance; Receipt 

and/or Processing Final Action 

Documentation; Results of Internal 

Monitoring or Program Review

NRCS Subtotal (5) $42,817,361 $198,502,181

Office of the Chief Financial Officer (OCFO)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

11601-0001-12 11/08/2019 4/30/2023 USDA Fiscal Year 2019 First Quarter 

Data Act Submission $0 $0 Issuance of Policy/Guidance

OCFO Subtotal (1) $0 $0
226 Section III | Other Information

Office of Chief Information Officer (OCIO)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

50501-0017-12 9/28/2018 12/30/2023 Security Over Select USDA Agencies 

Network and Systems Fiscal Year 2018 $0 $0 Administrative Action

50501-0020-12(1) 6/26/2018 12/30/2022 Improper Usage of USDA’s Information 

Technology Resources $0 $0 Receipt and/or processing of Final Action Documentation

50501-0021-12 8/1/2019 12/30/2022

Data Encryption Controls Over 

Personally Identifiable Information on 

USDA Information Technology Systems

$0 $0 Issuance of Policy/Guidance; 

Administrative Action

50501-0022-12 9/30/2020 12/30/2022 Security Over Select USDA Agencies 

Network and Systems Fiscal Year 2019 $0 $0 Administrative Action

50501-0023-12 9/29/2020 4/30/2023 USDA 2020 Compliance with the 

Geospatial Data Act $0 $0 Issuance of Policy/Guidance

OCIO Subtotal (5) $0 $0

Office of Small and Disadvantaged Business Utilization (OSDBU)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

50601-0003-23 9/28/2018 12/31/2022 OSDBU’s Control Over the Eligibility of 

Contract Recipients $0 $0 Issuance of Policy/Guidance

OSDBU Subtotal (1) $0 $0

Research, Education, and Economics Agency (REE)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

84801-0001-22 12/8/2020 9/30/2024 USDA Research Integrity and Capacity $0 $0 Administrative Action

REE Subtotal (1) $0 $0
USDA | 2022 Agency Financial Report 227

Risk Management Agency (RMA)

Audits Date Issued

Revised 

Completion Date Audit Title

Monetary Amount

DC ($) FTBU ($) Reason Pending

05601-0006-31 7/26/2019 08/31/2024

Annual Forage Program and FollowUp on Pasture, Rangeland, and 

Forage Program Recommendations

$(43,039,972) $0 Issuance of Policy/Guidance

05601-0007-31 6/30/2020 03/31/2023 Controls Over Crop Insurance Section 

508(H) Products $0 $0 Issuance of Policy/Guidance

RMA Subtotal (2) $(43,039,972) $0
228 Section III | Other Information

Page Intentionally Blank 
USDA | 2022 Agency Financial Report 229

Abbreviations — Acronyms

— A — 

A&O............................ Administrative and Operating

AARCC......................... Agricultural Research and Commercialization Corporation

AARs ........................... Acquisition Approval Requests

ACIF ............................ Agriculture Credit Insurance Fund

ADA............................. Anti-Deficiency Act

AFR ............................. Agency Financial Report

AgNIC.......................... Agriculture Network Information Collaborative

AHPA........................... Animal Health Protection Act

AIPs............................. Approved Insurance Providers

AMS ............................ Agricultural Marketing Service

AO............................... Authorizing Official

APEC III ....................... Access, Participation, Eligibility, and Certification Study, Third

APHIS .......................... Animal and Plant Health Inspection Service

APP ............................. Annual Performance Plan

APR ............................. Annual Performance Report

AQI.............................. Agricultural Quarantine Inspection

ARC ............................. Agriculture Risk Coverage

ARP ............................. American Rescue Plan

ARS ............................. Agricultural Research Service

ASAP ........................... Automated Standard Applications for Payments

ASF.............................. African Swine Fever

— B — 

BAR ............................. Budget and Accrual Reconciliation

BARC........................... Beltsville Agricultural Research Center

BOC ............................. Budget Object Classification
230 Abbreviations and Acronyms

— C — 

CAP ............................. Commodity Assistance Program

CARES Act................... Coronavirus Aid, Relief, and Economic Security Act

CBOs........................... Certificates of Beneficial Ownership

CCA ............................. Clinger-Cohen Act of 1996

CCC ............................. Commodity Credit Corporation

CCE ............................. Commodity Certificate Exchange

CDM............................ Cybersecurity Diagnostic and Migration

CFR.............................. Code of Federal Regulations

CIO.............................. Chief Information Officer

CN............................... Child Nutrition

CNP............................. Child Nutrition Program

CoC ............................. Cushion of Credit

CORE........................... Core Accounting System

COVID-19.................... Coronavirus Disease 2019

CPI............................... Consumer Price Index

CPIC ............................ Capital Planning and Investment Control

CRBG........................... Citrus Recovery Block Grant

CSAM.......................... Cyber Security Assessment and Management

Cwt. ............................ Hundredweight

— D — 

DC ............................... Disallowed Costs

DEIA............................ Diversity, Equity, Inclusion, and Accessibility

Department, the......... U.S. Department of Agriculture

DHS............................. Department of Homeland Security

DM&R......................... Deferred Maintenance

DNP............................. Do Not Pay

DOL............................. Department of Labor

DR............................... Departmental Regulation

— E — 

E&T ............................. Employment and training

EA ............................... Enterprise Architecture

E-Board....................... Executive Information Technology Investment Review Board

ECP.............................. Electronic Check Processing

eFG ............................. ezFedGrants

eFSAP.......................... Electronic Federal Select Agents Program

ERM ............................ Enterprise Risk Management

ERP.............................. Enterprise Resource Planning

ERS.............................. Economic Research Service

EWP ............................ Emergency Watershed Protection
USDA | 2022 Agency Financial Report 231

— F — 

FAS.............................. Foreign Agricultural Service

FASAB.......................... Federal Accounting Standards Advisory Board

FBWT .......................... Fund Balance with Treasury

FCIC............................. Federal Crop Insurance Corporation

FECA............................ Federal Employees’ Compensation Act

FEMA .......................... Federal Emergency Management Agency

FFAR............................ Foundation for Food and Agricultural Research

FFB.............................. Federal Financing Bank

FFMIA ......................... Federal Financial Management Improvement Act

FFMS........................... Federal Financial Management System

FIET............................. Financial Intelligent Enterprise Transformation

FISMA ......................... Federal Information Security Modernization Act

FITARA ........................ Federal Information Technology Reform Act

FL CRBG ...................... Florida Citrus Recovery Block Grant

FMFIA ......................... Federal Managers’ Financial Integrity Act

FMMI.......................... Financial Management Modernization Initiative

FMS............................. Financial Management Services

FNS ............................. Food and Nutrition Service

FPAC............................ Farm Production and Conservation

FPAC-BC ...................... Farm Production and Conservation Business Center

FR................................ Financial Report

FS ................................ Forest Service

FSA.............................. Farm Service Agency

FSAP............................ Federal Select Agents Program

FSFL............................. Farm Storage Facility Loan Program

FSH.............................. Forest Service Handbook

FSIS ............................. Food Safety and Inspection Service

FSM............................. Forest Service Manual

FTBU ........................... Funds to Be Put to Better Use

FY................................ Fiscal Year

— G — 

GAAP........................... Generally Accepted Accounting Principles

GAO ............................ Government Accountability Office

GAOA.......................... Great American Outdoors Act

GSA............................. General Services Administration

GTAS ........................... Governmentwide Treasury Account Symbol Adjusted Trial Balance System
232 Abbreviations and Acronyms

— H — 

H.R. ............................. House of Representatives

HANA.......................... High-Performance Analytic Appliance

HHS............................. Health and Human Services

HPAI ............................ Highly Pathogenic Avian Influenza

HUD ............................ U.S. Department of Housing and Urban Development

— I — 

IBNR............................ Incurred but Not Reported

IG ................................ Inspector General

IP................................. Improper Payment

IPIA ............................. Improper Payments Information Act of 2002

IPT Integrated Project Team

ISC............................... Information Security Center

IT................................. Information Technology

ITSD ............................ Information Technology Services Division

— K - L — 

KPIs............................. Key Performance Indicators

L&WCF........................ Land and Water Conservation Fund

— M — 

MD&A......................... Management’s Discussion and Analysis

MDD ........................... Management Decision Date

MDM .......................... Mobile Device Management

MOU........................... Memorandum of Understanding

MRP............................ Marketing and Regulatory Programs

— N — 

NAL ............................. National Agricultural Library

NASS ........................... National Agricultural Statistics Services

NBAF........................... National Bio and Agro-Defense Facility

NFC ............................. National Finance Center

NFS.............................. National Forest System

NIFA ............................ National Institute of Food and Agriculture

NOAA.......................... National Oceanic and Atmospheric Administration

NRCS ........................... Natural Resources Conservation Service

NRHP .......................... National Register of Historic Places

NSLP............................ National School Lunch Program

nTIG............................ Non-Competitive Technology Innovation Grants
USDA | 2022 Agency Financial Report 233

— O — 

OASCR......................... Office of the Assistant Secretary for Civil Rights

OBPA........................... Office of Budget and Program Analysis 

OCFO .......................... Office of the Chief Financial Officer

OCIO ........................... Office of the Chief Information Officer

OCS ............................. Office of the Chief Scientist

OGC ............................ Office of the General Counsel

OIG.............................. Office of Inspector General

OMB ........................... Office of Management and Budget

OPEM.......................... Office of Property and Enviornmental Management

OPPE........................... Office of Partnership and Public Engagement

OSDBU........................ Office of Small and Disadvantaged Business Utilization

— P — 

P.L. .............................. Public Law

PHA............................. Priority Heritage Assets

PIAs............................. Privacy Impact Assessments

PII................................ Personally Identifiable Information

PIIA ............................. Payment Integrity Information Act of 2019

PLC.............................. Price Loss Coverage

PMC............................ Plant Materials Center

PP&E........................... Property, Plant and Equipment

PPA.............................. Plant Protection Act

— Q — 

Q ................................. Quarter

QSMO......................... Quality Service Management Office

— R — 

R&D ............................ Research & Development

RC&D .......................... Resource Conservation and Development

RD............................... Rural Development

REE.............................. Research, Education, and Economics

REO............................. Real Estate Owned

REPLANT..................... Repairing Existing Public Land by Adding Necessary Trees Act

RMA............................ Risk Management Agency

RY................................ Report Year
234 Abbreviations and Acronyms

— S — 

SAM ............................ System for Award Management

SAP.............................. Systems, Applications, and Products

SAs.............................. State Agencies

SecOps........................ Security Operations

SER.............................. Single Effective Rate

SBP.............................. School Breakfast Program

SBR.............................. Statement of Budgetary Resources

SEN ............................. SAP Enable Now

SFAs ............................ School Food Authorities

SFFAS .......................... Statement of Federal Financial Accounting Standards

SFSP ............................ Summer Food Service Program

SITC............................. Smuggling Interdiction and Trade Compliance

SNAP........................... Supplemental Nutrition Assistance Program

SOB............................. Summary of Business

SOP ............................. Standard Operating Procedure

SRA ............................. Security Risk Assessment

SRA ............................. Standard Reinsurance Agreement

SSP.............................. Shared Services Provider

SY................................ School Year

— T — 

TB................................ Technical Bulletin

TFAA............................ Trade and Foreign Agricultural Affairs

TPMC .......................... Tucson Plant Materials Center

TSP.............................. Thrift Savings Plan

— U — 

U.S.C. .......................... U.S. Code

UDO ............................ Undelivered Orders

UEI .............................. Unique Entity Identifier

ULOs ........................... Unliquidated Obligations

USAID.......................... U.S. Agency for International Development

USDA........................... U.S. Department of Agriculture

USSGL ......................... U.S. Standard General Ledger

— V - W — 

VA ............................... U.S. Department of Veterans Affairs

WIC............................. Women, Infants, and Children
Page Intentionally Blank 
United States Department of Agriculture