oversight

Supplemental Response - Congressional Request on Open Office of Inspector General Audit Recommendations

Published by the Farm Credit Administration, Office of Inspector General on 2015-04-27.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

Farm Credit Administration 	                                     Office of Inspector General
                                                                 1501 Farm Credit Drive
                                                                 McLean, Virginia 22102-5090




April 27, 2015




The Honorable Ron Johnson
Chairman
Committee on Homeland Security and Governmental Affairs
United States Senate
328 Hart Senate Office Building
Washington, DC 20510-6250

The Honorable Charles E. Grassley
Chairman
Committee on the Judiciary
United States Senate
135 Hart Senate Office Building
Washington, DC 20510

Dear Chairman Johnson and Chairman Grassley:

This letter updates the Farm Credit Administration (FCA), Office of Inspector General (OIG)’s
March 25, 2015, response to your letter of February 27, 2015, requesting information regarding
open OIG recommendations, specified investigative reports, etc. Your letter requested
information dating from February 27, 2015, through March 27, 2015. The updated information
we are providing below, relates solely to open recommendations that were included in audits
issued after March 27, 2015, and included in this past Semiannual Report to Congress period
which ended on March 31, 2015.

On March 31, 2015, our office issued two program audit reports involving operations impacting
the Agency’s mission, examination and supervision of the regulated institutions Farm Credit
Administration’s Commissioning Program, Audit No. A-14-04 (3-31-2015) and Farm Credit
Administration’s Special Supervision and Enforcement Processes, Audit No. A-15-01 (3-31-
2015). These reports included 12 new, open and agreed-upon recommendations. We are
therefore updating our March 25, 2015, response to report on these 12 new recommendations.

As stated in our prior response, we will continue to provide these letter reports on a semiannual
basis in conjunction with issuance of the OIG’s Semiannual Reports to Congress. Therefore, our
next letter will be issued in October 2015 following issuance of our next Semiannual Report to
Congress.
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Your letter of February 27, 2015, requested the following information on open and
unimplemented recommendations and related cost savings:

       Request No. 1: An accounting of all outstanding unimplemented
       recommendations, as well as the aggregate potential cost savings of these open
       recommendations, including:
          a. 	 The current number of open and unimplemented recommendations;
          b. 	 The dates on which the open and unimplemented recommendations were
               initially made;
          c. 	 Whether agency management has agreed or disagreed with the
               recommendations; and
          d. 	 The total potential cost savings to the agency of the current open and
               unimplemented recommendations.

The 12 open, agreed-upon recommendations that were included in OIG’s audit reports issued
on March 31, 2015, are considered “agreed-upon” because FCA management has already
concurred with the recommendations. With respect to cost savings resulting from these
recommendations, OIG’s Farm Credit Administration’s Commissioning Program, Audit No. A-
14-04 (3-31-2015) included a conservative estimate for potential cost savings of $161,277 each
year, should the Agency determine it appropriate to remove certain final commissioning test
simulations from the program.

Although additional potential cost savings resulting from the remaining recommendations in the
Commissioning Program audit are not quantified into dollar amounts, these recommendations
would result in significant benefits for the Agency. Specifically, the recommendations related to
cost monitoring so efficiencies in the program can be made; taking advantage of opportunities to
streamline the process; competing contracts for the best value and ensuring controls are
optimized; and enhancing strategies and feedback to candidates.

The recommendations provided in OIG’s audit report, Farm Credit Administration’s Special
Supervision and Enforcement Processes, Audit No. A-15-01 (3-31-2015) would expand
efficiencies and streamline agency programs by improving special supervision and enforcement
processes and enhancing criminal referrals by Farm Credit System institutions.

We are happy to provide additional information regarding these recommendations upon request.
Thank you again for your efforts on behalf of the Inspectors General, and please contact my
office at (703) 883-4030, if we may further assist.

Sincerely,




Elizabeth M. Dean
Inspector General