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. 2 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
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)