oversight

Semiannual Report March 31, 2016

Published by the Farm Credit Administration, Office of Inspector General on 2016-03-31.

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 19, 2016




The Honorable Kenneth A. Spearman, Board Chairman
The Honorable Dallas P. Tonsager, Board Member
The Honorable Jeffery S. Hall, Board Member
Farm Credit Administration
1501 Farm Credit Drive
McLean, VA 22102-5090

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

Enclosed is the semiannual report on the activities of the Farm Credit Administration’s (FCA or
Agency) Office of Inspector General (OIG) for the period October 1, 2015 through March 31,
2016. This is the fifty-fourth report since the establishment of the OIG on January 22, 1989.

I submit this report in accordance with the Inspector General Act of 1978, as amended (IG Act).
Section 5(b) of the IG Act requires that the FCA Board send this report to the appropriate
Congressional committees and subcommittees within 30 days after the date of this transmittal,
accompanied by management’s report on the status of audit, inspection, and/or evaluation
action items.

I would like to thank Board Chairman Kenneth Spearman and Board Members Dallas Tonsager
and Jeffery Hall for their support of the OIG’s work. I look forward to continuing a harmonious
and productive relationship.

The OIG issued two program audit reports during this reporting period: one on Human Capital
Planning at FCA and the second on FCA’s Risk Project. We also issued one inspection report
on FCA’s Process in Developing and Updating Policies and Procedures.

We contracted with Harper, Rains, Knight & Company, P.A. to perform the audit of FCA’s
financial statements for FY 2015. We completed the OIG’s annual evaluation of the Agency’s
compliance with the Federal Information Security Modernization Act (FISMA). These reports
were issued in November 2015.

We also conduct the ongoing survey of the examination program, and conduct investigation
matters.

I would like to acknowledge FCA management’s positive and timely reaction to our work. I look
forward to continuing a responsive and effective relationship between the OIG and the FCA
Board, a partnership striving continuously to strengthen FCA operations.
If you have any questions, please call me at (703) 883-4036 or 4030.

Sincerely,




Elizabeth M. Dean

Inspector General


Enclosure
	


                                                       Table of Contents 
 

Message from the Inspector General.......................................................................................
                                                                                                                           1
 
Background ............................................................................................................................. 2
 
Strategic Goals  ........................................................................................................................ 4
 
Audits, Inspections, and Evaluations ....................................................................................... 8
 
    REPORTS ISSUED .................................................................................................................. 8
 
    AUDITS AND EVALUATIONS IN PROCESS ............................................................................ 15
 
    STATUS OF AGREED‐UPON ACTIONS AND RECOMMENDATIONS ....................................... 16
 
Other Reports........................................................................................................................
                                                                                                                                       19
 
    QUARTERLY SURVEY OF FARM CREDIT SYSTEM INSTITUTIONS .......................................... 19
 
    MANAGEMENT ADVISORY REPORTS .................................................................................. 19
 
Investigations ........................................................................................................................ 21
 
Legislative and Regulatory Reviews ....................................................................................... 22
 
Congressional Interaction......................................................................................................
                                                                                                                                 24
 
Outreach ............................................................................................................................... 25
 
OIG Staff................................................................................................................................
                                                                                                                                          26
 
Annex .................................................................................................................................... 27
 
Appendix A............................................................................................................................
                                                                                                                                        28
 
Appendix B ............................................................................................................................ 29
 
Appendix C ............................................................................................................................ 30
 
Appendix D............................................................................................................................
                                                                                                                                        31
 
Appendix E ............................................................................................................................ 32
 
Appendix F ............................................................................................................................ 33
 
Appendix G............................................................................................................................
                                                                                                                                        34
 
Appendix H............................................................................................................................
                                                                                                                                        35
 
Message from the Inspector General
  Message from the Inspector General



                 I am pleased to submit this Semiannual Report to the Congress. This report
        summarizes the activities and accomplishments of the Farm Credit Administration’s (FCA
        or Agency) Office of Inspector General (OIG) for the period October 1, 2015 through
        March 31, 2016. The OIG’s efforts were directed toward implementing the OIG’s Fiscal
        Year (FY) 2016 strategic and operating performance plan and budget. The OIG does so
        by performing audits, inspections, and evaluations of FCA programs and operations;
        conducting investigations; reviewing existing and proposed legislation and regulations
        relating to Agency programs and the IG community; and providing objective, independent
        reporting and consultation with the FCA Board.
                 The OIG issued five audit, inspection, and evaluation reports during this reporting
        period. Additionally, the OIG issued 30 surveys to Farm Credit System (FCS) institutions,
        designed to obtain feedback on the quality of the FCA examination program. Two survey
        reports summarizing the results were delivered to the Chief Examiner and FCA Board. We
        contracted with Harper, Rains, Knight & Company, P.A. to perform the audit of FCA’s
        financial statements for FY 2015, which was issued in November 2015. We completed the
        OIG’s annual evaluation of the Agency’s compliance with the Federal Information Security
        Modernization Act (FISMA) and issued the report in November 2015. We also completed
        program reviews of: Human Capital Planning at FCA; FCA’s Risk Project, and FCA’s
        Process in Developing and Updating Policies and Procedures.
                 I would like to acknowledge the effective efforts of the talented OIG staff in
        diplomatically leading Agency management to focus on significant program issues. In
        conjunction, FCA management continues to be forthright in reacting to OIG findings and
        making improvements. I welcome the new Chief Information
        Officer and look forward to continuing our positive relationship
        with all FCA managers and collaboration with the FCA Board,
        as we continue to strengthen FCA operations to meet the needs
        of American agriculture, keeping the nation’s economy strong
        and helping meet global food needs.




                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS
                                     OCTOBER 1, 2015 ─ MARCH 31, 2016
                                                    1
Background



     FARM CREDIT ADMINISTRATION
     The Farm Credit Administration (FCA or Agency) is an independent Federal agency of the United
     States government responsible for the regulation and examination of Farm Credit System (FCS or
     System) institutions chartered under the Farm Credit Act of 1971, as amended (Farm Credit Act).

     As a non-appropriated agency, FCA funds its expenses primarily through assessments to the
     institutions it regulates. FCA’s Fiscal Year 2016 budget is $66,200,000.

     At the end of the prior semiannual reporting period, the Agency had 298 employees. At the end of
     this reporting period, FCA had 288 employees, about half of which are examiners located in five field
     offices.


                                                            Bloomington, MN



                                     Denver, CO
        Sacramento, CA
                                                                                    Headquarters McLean, VA




                                                       Dallas, TX




     FARM CREDIT SYSTEM
     The FCS is a Government-sponsored enterprise comprised of 3 Farm Credit Banks, 1 Agricultural
     Credit Bank, and 74 associations serving all 50 states and Puerto Rico that primarily make loans to
     agriculture. The System raises funds by selling securities in the national and international money
     markets through its special purpose entity, the Federal Farm Credit Banks Funding Corporation.
     These securities are not guaranteed by the U.S. Government.

     The Federal Agricultural Mortgage Corporation (Farmer Mac), also a part of the FCS, is chartered by
     the Federal government to provide a secondary market for agricultural mortgage loans. Farmer Mac
     is publicly traded and issues its own debt securities. Additionally, there are five active service
     corporations that provide services to FCS entities and eligible borrowers.


                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

                                     OCTOBER 1, 2015 ─ MARCH 31, 2016
	
                                                    2

Background



     OFFICE OF INSPECTOR GENERAL
     The mission of the Office of Inspector General (OIG) is to be an agent of positive change, striving for
     continual improvement in FCA’s management and program operations. The Inspector General Act of
     1978, as amended, established the FCA OIG in 1989.

     The Inspector General is appointed by the FCA Board without regard to political affiliation and solely
     based on integrity and demonstrated ability in accounting, auditing, financial analysis, management
     analysis, investigations, law, or public administration. The OIG’s FY 2016 budget is $1,493,393.

     While the OIG is under the general supervision of the FCA Board, it operates with independent
     personnel and contracting and budget authority. The Inspector General reports both to the FCA
     Board and to the Congress.

     The OIG has four major components: audits, inspections, and evaluations of programs and
     operations; investigations; legislative and regulatory reviews; and outreach.




                                          Office of Inspector General




              Audits,                                       Legislative and
           Inspections,           Investigations              Regulatory                 Outreach
         and Evaluations                                       Reviews




                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

                                     OCTOBER 1, 2015 ─ MARCH 31, 2016
	
                                                    3

Strategic Goals



      To accomplish our mission, the OIG has eight strategic goals in place that are aligned to FCA’s
      mission, programs, and activities (see the OIG’s Strategic and Operating Performance Plan for
      additional information). The following list summarizes our eight strategic goals and related outcomes
      during this reporting period.

             Strategic Goal 1:

             Deliver quality audit, inspection, and evaluation products
             and services that are useful to the FCA Board,
             management, and the Congress.
             In pursuit of this goal, the OIG continues to provide quality reports to FCA management
             for improvement to programs. The OIG initiates a risk-based approach in planning our
             workload. During this reporting period, we issued two audit reports relating to FCA’s
             human capital planning and FCA’s risk project and an inspection report on FCA’s
             process in developing and updating policies and procedures. We also issued an audit
             report on the FY 2015 financial statements and an evaluation report on the required
             annual FISMA review. The issued reports were timely and constructive to improve
             Agency effectiveness and efficiency. As a result of our work, 19 recommendations
             were made to FCA management. Of these recommendations, all 19 were agreed-
             upon. We also have ongoing audits on the controls over the Electronic Official
             Personnel Folder, business continuity procedures at FCS institutions, and the financial
             statements for FY 2016.

             Strategic Goal 2:

             Provide technical advice and assistance to Agency
             officials in developing sound management information and
             financial reporting systems and in streamlining programs
             and operations.
             The OIG provides technical advice to management in a variety of methods. For this
             reporting period, we closed out an issue developed in a Management Advisory to the
             FCA Board during the last semiannual period. On September 16, 2015, we issued a
             management advisory relating to eligibility to participate in the Agency’s newly-created
             401(k) plan. The Agency responded in a timely manner, and resolved the eligibility
             issue in its 2016 Compensation and Benefits Program (issued in December 2015). We
             also issued a series of five articles on fraud awareness for publication in the Agency’s
             newsletter.




                                FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                     4

Strategic Goals




          Strategic Goal 3:

          Continuous improvement of the OIG staff, products, and
          internal office administration. Quality is highly valued.
          The OIG continuously strives to improve internal staff and processes. All OIG staff
          maintain requirements for their related professional standards: audit, legal, and the
          Council of Inspectors General on Integrity and Efficiency (CIGIE) standards. We
          participate in a peer review every three years, and we received a pass rating during our
          last peer review in June 2013. Our next peer review is scheduled for the third quarter
          FY 2016. The OIG also conducts an annual quality assurance review on the audit
          function and assesses internal controls on a continuous basis.



          Strategic Goal 4:

          Effectively investigate and report administrative and
          criminal violations relating to FCA programs and personnel
          to Agency officials, the Attorney General (when
          appropriate), and the Congress.
          The IG Counsel performs the investigative function for the OIG. For this reporting
          period, we issued one report of investigation and closed four investigations, including
          three preliminary investigations. As of the end of the reporting period, the OIG had no
          pending investigations. The four closed investigations addressed issues relating to
          alleged nepotism, compensation, and performance of inherently government
          activities. The allegations were not substantiated.

          We also received 13 complaints via the OIG Hotline during the October through
          March timeframe, seven of which were borrower complaints. All 13 complaints were
          referred, responded to, or closed during the reporting time period.




                            FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                 5

Strategic Goals




          Strategic Goal 5:

          Cause FCA employees and managers to recognize their
          responsibility and report observed or suspected
          wrongdoing to the OIG.
          The OIG recognizes the importance of employees and managers reporting, and the
          OIG reacting to, suspected or observed wrongdoing. During this reporting period, the
          OIG published a five-part series on fraud awareness that was provided to all FCA
          employees through the Agency’s employee newsletter. This series included
          information addressing fraud prevention, detection, and protection for
          whistleblowers.


          Strategic Goal 6:

          Maintain an effective program for reviewing and
          commenting on proposed and existing legislation and
          regulations affecting the Agency and the IG community.

          Reviewing and commenting on proposed and existing legislation and regulations
          affecting FCA and the IG community is an important area for the OIG. During this
          reporting period, we reviewed 37 items, including 28 legislative initiatives; two
          final rules; two proposed rules; and five Informational Memoranda and
          Bookletters issued by the FCA Office of Examination. These issuances
          addressed a myriad of issues, including, but not limited to:
              •   Margin and Capital Requirements for Covered Swap Entities;
              •   Loan Policies and Operations, and Funding Operations;
              •   Servicing Loans to Borrowers in Distressed Industries;
              •   Compliance with Section 4.38 of the Farm Credit Act – Affirmative Action;
              •   Amendments to the Inspector General Act;
              •   Email privacy; and
              •   IG empowerment and access issues.




                            FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                 6

Strategic Goals




          Strategic Goal 7:

          Promote OIG’s role within the FCA and the community at
          large.

          Outreach and communication are essential to the OIG’s role. In addition to the
          above-referenced fraud awareness reporting series, the OIG annually briefs
          incoming employees on the OIG’s history, mission, reporting, and audit and
          investigative activities during FCA’s new employee orientation. The OIG also
          advised Agency management of changes in law and regulation relating to social
          media use by Federal employees, highlighting issues for further review by
          management regarding the need for policy changes.


          Strategic Goal 8:

          Provide leadership to organizations directly contributing to
          the IG community, the Agency, and the Federal
          government.
          OIG staff participate in workgroups, conferences, and training related to the IG
          community, FCA, and the Federal government. The IG is a member of the
          Executive, Legislation, and Inspection and Evaluation Committees of CIGIE. The
          CIGIE Legislation Committee has engaged in several responses to legislative
          efforts and congressional hearings. The Counsel is Vice-Chair of CIGIE’s Council
          of Counsels, and participates in associated working groups, including the CIGIE
          Records Administration Group and FOIA. The auditors are involved with CIGIE
          cross-cutting projects, the Federal Audit Executive Council (FAEC), the
          Inspection and Evaluation Roundtable, and OIG Community Public Affairs.




                           FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                7

Audits, Inspections, and Evaluations
             Records Administration Group and FOIA. The auditors are involved with CIGIE
             cross-cutting audits, the FAEC, the Inspection and Evaluation Roundtable, and
             OIG Community Public Affairs.



      REPORTS ISSUED
      This reporting period, the OIG continued to provide FCA with high quality products. We issued three
      audit reports, one evaluation report, and one inspection report with a total of nineteen agreed-upon
      actions by FCA management. We also have three in-process audits initiated during this six-month
      period. The OIG also issued 30 surveys to FCS institutions and two reports on the survey results to
      the Chief Examiner and FCA Board. The reports summarize survey results and stakeholder opinions
      on the quality and issues involved in mission execution. Lastly, one Management Advisory was
      closed.




            5        Audit,
                     Inpection &
                                           19        Agreed-Upon
                                                                             3        In-Process
                                                     Actions
                     Evaluation                                                       Audits
                                                     Initiated
                     Reports




         30         Surveys
                    Issued to
                                            2        Survey
                                                                            1        Management
                                                                                     Advisory
                    FCS                              Reports
                                                                                     Closed
                    Institutions




      The OIG conducts all audits in accordance with Government Auditing Standards issued by the
      Comptroller General of the United States for audits of Federal organizations, programs, activities, and
      functions. Inspections and evaluations are conducted in accordance with the CIGIE Quality
      Standards for Inspection and Evaluation.

      Copies of most OIG reports are available on our website at www.fca.gov/home/inspector.html, or by
      contacting the OIG at (703) 883-4030, or by e-mail at ig_information@fca.gov. We offer a free
      subscription service that provides automatic notification by e-mail when a new report or other
      information is posted to the OIG website. Go to http://apps.fca.gov/subscribeOIG/, provide your
      email, and click join the list.




                                FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                     8

Audits, Inspections, and Evaluations




      Audit of FCA’s Financial Statements Fiscal Year 2015

      The OIG contracted with Harper, Rains, Knight & Company, P.A., an independent public
      accounting firm, and oversaw the audit of FCA’s financial statements for FY 2015. Harper,
      Rains, Knight & Company completed the audit and issued an unmodified opinion in November
      2015.

      In the auditors’ opinion, FCA’s principal financial statements present fairly, in all material
      respects, the financial position of the Agency as of the FY ended September 30, 2015, in
      conformity with generally accepted accounting principles.

      Harper, Rains, Knight & Company considered FCA’s internal control over financial reporting to
      determine the audit procedures for the purpose of expressing an opinion on the financial
      statements. The auditors did not express an opinion on the effectiveness of FCA’s internal
      controls; however, they did not identify any deficiencies considered to be a material weakness.

      The auditors performed tests of FCA’s compliance with selected provisions of laws and
      regulations that could have a direct and material effect on the financial statements. Although
      they did not express an opinion on compliance with those provisions, they did not identify any
      instances of noncompliance or other matters required to be reported under Government
      Auditing Standards issued by the Comptroller General of the United States or the Office of
      Management and Budget (OMB) Bulletin No. 15-02, Audit Requirements for Federal Financial
      Statements.

      The final report was issued November 9, 2015.




                                FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                     9

Audits, Inspections, and Evaluations



       OIG 2015 Evaluation of the Farm Credit Administration’s Compliance
       with the Federal Information Security Modernization Act
       The Federal Information Security Modernization Act (FISMA) of 2014 requires an agency’s
       Chief Information Officer and OIG to conduct annual assessments of the agency’s information
       security program. The purpose of FISMA was to provide a comprehensive framework for
       ensuring the effectiveness of information security controls, minimum controls for agency
       systems, and improved oversight of agency information security programs.

       The OIG completed the 2015 independent evaluation of FCA’s compliance with FISMA during
       this reporting period. The evaluation found that FCA has an information security program that
       continues to mature, and FCA’s experienced information technology (IT) team is proactive in
       their approach to information security.

       OMB required OIGs to evaluate 10 areas during 2015:

          1. Continuous Monitoring Management
          2. Configuration Management
          3. Identify and Access Management
          4. Incident Response and Reporting
          5. Risk Management
          6. Security Training
          7. Plan of Action & Milestones
          8. Remote Access Management
          9. Contingency Planning
          10. Contractor Systems

      FCA established a program in 10 of the areas that is consistent with National Institute of
      Standards and Technology’s (NIST) and OMB’s guidelines.

      The final report was issued on November 13, 2015.




                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                    10

Audits, Inspections, and Evaluations



      Audit of Human Capital Planning at the Farm Credit Administration

      In order to accomplish the mission, it is essential for FCA to ensure it has the right people with
      the right skills. FCA’s most valuable asset is its employees. Human capital planning is,
      therefore, imperative for the Agency. FCA’s Human Capital Plan documents the plan for the
      next five years and aligns with the Agency’s Strategic Plan toward the following goals:
      leadership and knowledge management, results-oriented performance culture, and talent
      management.

      The objective of this audit was to assess the adequacy of the Agency’s human capital planning
      and the effectiveness of its implementation. The audit focused on the following three areas: key
      person dependency and succession planning; employee turnover and recruiting; and workplace
      diversity and inclusion.

      We found the Agency had an adequate human capital planning process. FCA has a Human
      Capital Plan for FY 2014-2018 in place and a new plan was being prepared. Regarding
      succession planning, FCA has a process to identify key person dependencies and plans for
      future needs of the Agency. There is also a training program for personnel who are responsible
      for recruiting examiner and intern positions for the Office of Examination, the most prominent
      career path within FCA. Finally, with respect to diversity and inclusion, FCA has an equal
      employment opportunity and inclusion (EEOI) program. The EEOI Director reports directly to the
      FCA Board Chairman, and there are written policies and procedures. All employees are
      accountable for supporting EEOI, in part, by being evaluated on EEOI in their performance
      evaluations.

      We identified a few opportunities, however, to improve or modify human capital planning and
      implementation. Several key positions in the Agency were not identified in the human capital
      planning request. Efforts to address the gap in mid-career experience levels and track progress
      in doing so could increase effectiveness. Developmental and training programs could be
      enhanced. The Agency’s workforce diversity and inclusion efforts could be improved through
      outreach efforts, increased coordination, and data collection and analysis efforts.

      In response to our audit, OMS agreed to the following actions:

         1. Formalize the human capital planning process by:

                 •   identifying membership (positions) of the Human Capital governance body,
                 •   scheduling reviews of the Human Capital Plan objectives, and
                 •   monitoring and tracking progress toward meeting human capital goals.




                                FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                     11

Audits, Inspections, and Evaluations



         2.	 Track data on succession planning efforts. Document the strategies to mitigate the risks.
             Monitor and follow-up to capture and utilize results.

         3.	 Assess organizational leadership and development programs and modify to promote,
             enhance, and improve initiatives within the Agency.

         4.	 Coordinate and revise the network distribution list for FCA job announcements.

         5.	 Increase coordination between OMS and EEOI on special emphasis programs and
             outreach.

         6.	 Implement a plan to improve the exit interview process and disperse exit interview data
             to gather consistent, useful information for comparison and trends.

         7.	 Consider a veterans’ representative for Agency veteran efforts.

         8.	 Provide training to all personnel involved in the recruiting and hiring process on potential
             biases and barriers to employment.

         9.	 Conduct an assessment of FCA hiring practices to identify potential barriers and areas of
             improvement.

         10. Establish a policy that includes the plan for requesting and analyzing applicant flow data
             for FCA job announcements.

         11. Conduct a survey, or use other information-gathering tools, to gather additional targeted
             information on workplace diversity and inclusion.

      The Office of Management Services agreed with the report and provided specific tasks to be
      completed to strengthen FCA’s human capital planning and implementation. These tasks
      included documenting processes and strategies and increasing coordination. The Agency stated
      it would also implement new initiatives and policies in response to our report.

      The final report was issued February 29, 2016.




                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                    12

Audits, Inspections, and Evaluations



      The Farm Credit Administration’s Risk Project
      To ensure the success of IT investments, the Agency must keep pace with the rapid rate of
      innovation and evaluate new ways to improve business processes. The Risk Project is an
      ongoing Information Resources Management (IRM) project that was first developed in 2009.
      The goals of the Risk Project are to evaluate and acquire tools that enable FCA to 1) conduct
      risk and statistical analysis of the FCS and 2) enable users to create reports and dashboards for
      FCA’s key datasets.

      Our objective was to determine whether the Risk Project was planned and is being managed
      efficiently and effectively. Various stakeholders participated in project decisions and the Risk
      Project workgroup completed a multi-phase evaluation before selecting a business intelligence
      tool for the Agency. However, the Risk Project did not have a comprehensive project plan or
      utilize an incremental investment approach. Other areas for improvements included the
      documentation and approval of large IT acquisitions and a determination of the appropriate
      number of software licenses for the Agency’s users. These factors contributed to unexpected
      outcomes, delays, and increased costs.

      In response to our audit the Office of Information Technology agreed to take the following
      actions:

         1.	 Add or modify current procedures for large IT investments to:

                 •	 Designate a project manager and project management responsibilities;
                 •	 Assess resources and determine whether consultants are needed for project
                    planning and implementation; and
                 •	 Establish guidelines for incremental investment.

         2.	 Establish a control to ensure project management guidance is implemented for large IT
             investments.

         3.	 Create an incremental project plan for the remainder of the Risk Project in coordination
             with the Risk Project workgroup. Include an assessment of required resources and tasks
             requiring consultants and evaluate other tools that may be incorporated to accomplish
             Risk Project goals and objectives.

         4.	 Modify standard operating procedures to define levels of approval for large IT
             acquisitions and establish a control to ensure appropriate reviews and approvals are
             obtained.

         5.	 Evaluate Risk Project software licenses before the next renewal period.

      The final report was issued March 31, 2016.


                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                    13

Audits, Inspections, and Evaluations



      Inspection of Farm Credit Administration’s Process in Developing and
      Updating Agency Policies and Procedures

      FCA maintains an online library of Agency policies and procedures (PPMs). The PPM library
      serves as a central repository for PPMs and is a valued resource to FCA employees for
      information on Agency programs.

      The inspection objective was to determine the effectiveness and efficiency of FCA’s process in
      developing and updating Agency policies and procedures.

      We found the Agency is generally consistent in the following processes: preparing and
      formatting new PPMs; routing PPMs for approvals; posting new PPMs or modifications; and
      communicating PPM information to employees.

      We identified opportunities for improvement in the following areas:

         •	    The processes for developing and updating policies and procedures are not formalized
               in a written document.

         •	    Many PPMs have older publication dates and contain outdated information about
               Agency policies and programs.

         •	    The process to determine when a new, updated, or rescinded PPM should be 

               communicated to employees is not documented.


      The Agency agreed to take the following actions:

         1.	   Publish procedures for developing, updating, formatting, approving and communicating
               PPMs.

         2.	   Periodically review PPMs to certify whether policies and procedures are current, need
               updating, or should be rescinded.

         3.    Consider automating the review and approvals process.

      The final report was issued March 31, 2016.




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Audits, Inspections, and Evaluations



      AUDITS AND EVALUATIONS IN PROCESS

      Audit of FCA’s Examination of Business Continuity at FCS
      Institutions
      FCA’s goal is to have a flexible regulatory environment that facilitates electronic commerce and
      the use of information technology. However, institutions must establish good business practices
      that ensure safety and soundness. FCA Regulation 609.930 requires policies and procedures
      that address business continuity planning.

      The objective of this audit is to evaluate FCA’s process in determining which business continuity
      procedures were performed and whether there were any gaps during the Agency’s examination
      process of FCS institutions identified by OE as high risk.


      Audit of FCA’s Controls Over the Electronic Official Personnel Folder
      In July 2009, FCA implemented the Electronic Official Personnel Folder (eOPF), which is a re­
      creation of the paper personnel folder for Federal employees. The eOPF provides web-enabled
      access to individual personnel folders through an internet-based, self-service tool. The eOPF
      contains all official records required to document an employee’s Federal career. Users are
      allowed to view their own eOPF documents, but they cannot modify the documents.

      The objective of the audit is to review the effectiveness of controls related to the eOPF. The
      draft report was issued in March 2016, and the final report will be issued in the next reporting
      period.

      Audit of FCA’s Financial Statements Fiscal Year 2016
      The Accountability of Tax Dollars Act of 2002 requires FCA and certain other agencies to submit
      to the Congress and OMB an audited financial statement each fiscal year.

      In continuing to assist the Agency in meeting these requirements, the OIG contracted with
      Harper, Rains, Knight & Company, P.A. to perform the audit of FCA’s financial statements for
      FY 2016. The audit remained ongoing at the end of this reporting period. For FY 2015, the OIG
      also contracted with Harper, Rains, Knight & Company, P.A. to perform the audit.




                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

                                     OCTOBER 1, 2015 ─ MARCH 31, 2016
	
                                                    15

Audits, Inspections, and Evaluations



      STATUS OF AGREED-UPON ACTIONS AND RECOMMENDATIONS
      In total, there were 19 agreed-upon actions added from three reports issued for the reporting
      period. We had 14 actions open at the beginning of the period to carry over. As of March 31,
      2016, 21 agreed-upon actions remained open.




                            Audit, Inspection, and Evaluation Agreed-Upon Actions

                                              Carryover                        Final Management
                                                             New During this                          Open on
             Report              Issued       from Prior                       Actions During this
                                                             6-Month Period                          3/31/2016
                                            6-Month Period                       6-Month Period
         FCA’s Special
        Supervision and
                                3/31/2015         2                0                   2                 0
         Enforcement
           Processes

            FCA’s
         Commissioning          3/31/2015         8                0                   5                 3
           Program

        FCA’s Personnel
          Security and          9/30/2015         4                0                   4                 0
       Suitability Program

        Human Capital
                                2/29/2016         0                11                  1                10
        Planning at FCA


       FCA’s Risk Project       3/31/2016         0                5                   0                 5


        FCA’s Process in
         Developing and
            Updating            3/31/2016         0                3                   0                 3
       Agency Policies and
           Procedures

             Total                               14                19                  12               21




                                    FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                         16

Audits, Inspections, and Evaluations



      OPEN AGREED-UPON ACTIONS
      The following charts show open agreed-upon actions for issued reports as of March 31, 2016:


                       FCA’s Commissioning Program (Issued 3/31/15)
                              Identify and track specific commissioning costs to evaluate the cost of the program
             Agreed-Upon
                              and identify cost-saving opportunities and consider timekeeping code revisions, with
           Action Number 1
                              OMS assistance in implementation.
                              Analyze the costs and benefits of streamlining and consolidating current testing and
             Agreed-Upon
                              assessment milestones through the elimination of the final Commissioning Test
           Action Number 3
                              simulations.

             Agreed-Upon      Revise processes to provide feedback to every Associate Examiner on Technical
           Action Number 9    Evaluations and Commissioning Test multiple-choice test performance.



                       Human Capital Planning at FCA (Issued 2/29/16)
                              Formalize the human capital planning process by:
             Agreed-Upon          •    identifying membership (positions) of the Human Capital governance body,
           Action Number 1        •    scheduling reviews of the Human Capital Plan objectives, and
                                  •    monitoring and tracking progress toward meeting human capital goals.

             Agreed-Upon      Track data on succession planning efforts. Document the strategies to mitigate the
           Action Number 2    risks. Monitor and follow-up to capture and utilize results.

             Agreed-Upon      Assess organizational leadership and development programs and modify to promote,
           Action Number 3    enhance, and improve initiatives within the Agency.

             Agreed-Upon
                              Coordinate and revise the network distribution list for FCA job announcements.
           Action Number 4

             Agreed-Upon      Increase coordination between OMS and EEOI on special emphasis programs and
           Action Number 5    outreach.

             Agreed-Upon      Implement a plan to improve the exit interview process and disperse exit interview
           Action Number 6    data to gather consistent, useful information for comparison and trends.

             Agreed-Upon      Provide training to all personnel involved in the recruiting and hiring process on
           Action Number 8    potential biases and barriers to employment.

             Agreed-Upon      Conduct an assessment of FCA hiring practices to identify potential barriers and areas
           Action Number 9    of improvement.

              Agreed-Upon     Establish a policy that includes the plan for requesting and analyzing applicant flow
           Action Number 10   data for FCA job announcements.

              Agreed-Upon     Conduct a survey, or use other information-gathering tools, to gather additional
           Action Number 11   targeted information on workplace diversity and inclusion.




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                                                   17

Audits, Inspections, and Evaluations




                           FCA’s Risk Project (Issued 3/31/16)
                           Add or modify current procedures for large IT investments to:
                               •   Designate a project manager and project management responsibilities;
           Agreed-Upon
                               •   Assess resources and determine whether consultants are needed for project
         Action Number 1
                                   planning and implementation; and
                               •   Establish guidelines for incremental investment.


           Agreed-Upon     Establish a control to ensure project management guidance is implemented for large IT
         Action Number 2   investments.


                           Create an incremental project plan for the remainder of the Risk Project in coordination
           Agreed-Upon     with the Risk Project workgroup. Include an assessment of required resources and tasks
         Action Number 3   requiring consultants and evaluate other tools that may be incorporated to accomplish
                           Risk Project goals and objectives.

                           Modify standard operating procedures to define levels of approval for large IT
           Agreed-Upon
                           acquisitions and establish a control to ensure appropriate reviews and approvals are
         Action Number 4
                           obtained.

           Agreed-Upon
                           Evaluate Risk Project software licenses before the next renewal period.
         Action Number 5




                        FCA’s Process in Developing and Updating
                     Agency Policies and Procedures (Issued 3/31/16)
           Agreed-Upon     Publish procedures for developing, updating, formatting, approving and communicating
         Action Number 1   PPMs.


           Agreed-Upon     Periodically review PPMs to certify whether policies and procedures are current, need
         Action Number 2   updating, or should be rescinded.


           Agreed-Upon
                           Consider automating the review and approvals process.
         Action Number 3




                           FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                18

Other Reports



      QUARTERLY SURVEY OF FARM CREDIT SYSTEM INSTITUTIONS
      The OIG administers an ongoing survey of FCS institutions regarding the quality and
      consistency of the Agency’s examination function, including the examiners’ performance.
      Without attribution, the OIG issues a quarterly report and, at the end of each fiscal year, a
      summary report on the survey results to the Chief Examiner and the FCA Board.

      The survey asks respondents to rate eight statements regarding examination activities,
      communications and FCA regulations and guidance. Additionally, respondents have the
      opportunity to discuss the aspects of the examination that were the most and least helpful to the
      FCS institution’s board and management team. Each quarter there are a relatively small number
      of respondents. Over time, however, analyses of response patterns enable sound conclusions
      as to the quality of the examiners and the examination function. The consistent trend indicates
      the examination program and staff are well regarded.

         •   Fourth Quarter (July 1 – Sept. 30, 2015) and Fiscal Year 2015 Summary
             In October 2015, the OIG issued 18 surveys to FCS institutions for feedback on the
             examination program and staff during the fourth quarter of FY 2015. Twelve FCS
             institutions responded. The OIG issued a report, including a summary of FY 2015
             responses, in January 2016 to the Chief Examiner and the FCA Board.

         •   First Quarter Fiscal Year 2016 (Oct. 1 – Dec. 31, 2015)
             In January 2016, the OIG issued 12 surveys to FCS institutions for feedback on the first
             quarter of FY 2016. Ten institutions responded. The OIG provided a report in March
             2016 to the Chief Examiner and the FCA Board.

      MANAGEMENT ADVISORY REPORTS
      The OIG Management Advisory Reports are designed to be a quick mechanism to offer the
      Agency head and management suggestions on ways to strengthen Agency operations.

      During this reporting period, the OIG closed out a management advisory issued in the last
      reporting period, following final management action. On September 16, 2015, the OIG issued a
      management advisory relating to eligibility to participate in the Agency’s newly-created 401(k)
      plan. The Agency responded in a timely manner, and resolved the eligibility issue in its 2016
      Compensation and Benefits Program issued in December 2015.




                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                    19

Other Reports



      CHARGE CARD RISK ASSESSMENT AND SUBMISSIONS
      The Government Charge Card Abuse Prevention Act of 2012 (Charge Card Act) requires the
      OIG of each executive agency to conduct periodic assessments of charge card programs to
      analyze the risks of illegal, improper, or erroneous purchases. As part of adherence to the
      Charge Card Act and the implementation guidance, the Farm Credit Administration (FCA) OIG
      conducts an annual risk assessment of FCA’s charge card programs, including the purchase
      and travel card programs and the centrally billed account utilized by FCA. The OIG completed
      its annual risk assessment and issued the Charge Card Risk Assessment to the Agency in
      March 2016.

      The OIG also issued a letter to the Office of Management and Budget in January 2016 on
      agency progress in implementing audit recommendations. During FY 2015, we conducted the
      risk assessment, but did not complete any reviews on the charge card programs. We previously
      audited the travel and purchase card programs in FY 2014:

         •   Farm Credit Administration’s Travel Card Program (A-14-03), issued August 19, 2014.

         •   Farm Credit Administration’s Purchase Card Program (A-14-02), issued September 5, 2014.

      All recommendations were agreed upon by management and were subsequently closed.
      Therefore, there were no open recommendations for FY 2015. We will continue to conduct risk
      assessments and reviews as part of our audit and inspection functions.

      PERFORMANCE REPORT FISCAL YEARS 2014 AND 2015

      The Government Performance and Results Act (GPRA) of 1993 and GPRA Modernization Act
      of 2010 encourage organizations to manage for results and hold managers accountable for
      executing programs to achieve desired outcomes. Our report documents the outcomes or
      impacts of the products, services, and leadership of the OIG during fiscal years 2014 and 2015.

      The final report was issued January 20, 2016.




                              FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                   20

Investigations




      The OIG completed all pending investigations during this period, investigating matters raised
      through the OIG Hotline and via other notification mechanisms.




          1     Reports of
                                   4                        0                      13
                                         Investigations           Pending                  Hotline
                Investigation                                     investigations           complaints
                                         closed
                issued                                                                     addressed




      Investigations
      During this reporting period, the OIG issued one Report of Investigation; closed four
      investigations, including three preliminary investigations. OIG has no pending investigations as
      of the end of the reporting period. The closed investigations involved allegations relating to
      various issues, including alleged nepotism, performance of inherently governmental activities,
      and compensation. None of the investigations resulted in substantiated allegations.

      Hotline
      The OIG Hotline is available 24 hours a day, 7 days a week, to receive tips and complaints
      about fraud, waste, or abuse relating to FCA programs and operations. The Hotline allows
      individuals to report their allegations to the OIG directly and confidentially and is available
      through email, phone, fax, and mail.

      During the reporting period, the OIG received 13 Hotline complaints. Seven of these complaints
      involved borrowers and six of them non-borrowers. All 13 complaints were referred, responded
      to, or administratively closed. Six complaints were closed because they involved matters outside
      OIG’s jurisdiction and/or had already been sent to the appropriate agency. The remaining seven
      were complaints concerning FCS institutions, and were referred to the FCA offices, including the
      Office of Examination or the Office of Congressional and Public Affairs, responsible for
      reviewing these matters.




                                FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                     21

Legislative and Regulatory Reviews



      In fulfilling the OIG’s statutory obligation to review existing and proposed legislation and
      regulations, the IG reviews and comments on legislative initiatives as a member of the CIGIE
      Legislative Committee and also through the Council of Counsels to the Inspectors General. The
      OIG also reviews draft FCA regulations and attends joint briefings of the FCA Board involving
      proposed and final regulations. During this reporting period, we reviewed:




        28       Legislative
                                 2      Proposed
                                                        2      Final Rules
                                                                               5     Informational
                                                                                     Memoranda
                 Items                  Rules                                        and
                                                                                     Bookletters




      The following were reviewed:

      Legislation
          1. H.R. 2395 and S. 579, Inspector General Empowerment Act
          2. S. 2128, Inspector General Mandates Reporting Act of 2015
          3. H.R. 3555, Jobs! Jobs! Jobs!
          4. H.R. 3528, Congress Leads by Example Act of 2015
          5. S. 754, Cybersecurity information Sharing Act of 2015
          6. S. 2127, Dr. Chris Kirkpatrick Whistleblowers Protection Act of 2015
          7. S.1073, Stopping Improper Payments to Deceased People Act
          8. S. 1378, Bonuses for Cost-Cutters Act of 2015
          9. S. 2133, Fraud Reduction and Data Analytics Act of 2015
          10. H.R. 3743, Secure Every Electronic Record
          11. H.R. 4934, Regulatory Agency Demilitarization Act
          12. S. 2128, Inspector General Mandates Reporting Act of 2015
          13. H.R. 2269, The Government Transformation Act of 2015
          14. H.R. 699, Email Privacy Act
          15. H.R. 4127, Intelligence Authorization Act for FY 2016
          16. S. 2450, Administrative Leave Act of 2015
          17. H.R. 2029, Consolidated Appropriations Act of 2016
          18. S. 614, Federal Improper Payments Coordination Acts of 2015
          19. H.R. 653, FOIA Oversight and Implementation Act
          20. H.R. 4360, Official Personnel File Enhancement Act of 2016
          21. S. 1115, Grants Oversight and New Efficiency Act (“GONE”) Act




                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                    22

Legislative and Regulatory Reviews



         22. S. 795, Bill to Enhance Whistleblower Protection for Contractor and Grantee Employees
         23. S. 1130, Legal Justice for Servicemembers Act of 2015
         24. H.R. 2029, Consolidated Appropriations Act, 2016, P.L. 114-113
         25. S. 1616, Saving Federal Dollars Through Better Use of Government Purchase and
             Travel Cards Act of 2015
         26. H.R. 4639, Thoroughly Investigating Retaliation Against Whistleblowers Act
         27. H.R. 4361, Federal Information Systems Safeguards Act of 2016
         28. S. 337, FOIA Improvement Act of 2015

      Proposed Rules
          1.	   Organization; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding
                Operations; Farmer Mac Investment Eligibility, 81 Fed. Reg. 8860-8867 (Feb. 23,
                2016)

          2.	   Amendments to 5 CFR Part 2635, Standards of Ethical Conduct for Employees of
                the Executive Branch, 80 Fed. Reg. 74004-74018 (Nov. 27, 2015)

      Final Rules
         1.	    Margin and Capital Requirements for Covered Swap Entities, 12 CFR 1221, Joint
                Rule (OCC, FRB, FDIC, FCA, FHFA), 80 F.R. 74840 (Nov. 30, 2015)

          2.	   Final Rule: Capital – Tier 1/Tier 2 Framework (Mar. 10, 2016)

      Informational Memoranda and Bookletters
          1.	   Compliance with Section 4.38 of the Farm Credit Act – Affirmative Action

                (Nov. 6, 2015)


          2.	   Limited Suspension of Enforcement Actions Relating to Private Flood Insurance
                (Dec. 23, 2015)

          3.	   Amendments to Regulation C and Regulation Z and Annual Threshold Adjustments
                under Regulation Z and Regulation M (Jan. 13, 2016)

          4.	   Servicing Loans to Borrowers in Distressed Industries (Jan. 21, 2016)

          5.	   Maximum Farm Credit System Bank Director Compensation for 2016 (Feb. 5, 2016)




                             FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                  23

Congressional Interaction



      During this reporting period, the OIG continued to meet with Congressional staff members to
      discuss ongoing Agency and OIG activities. The OIG also issued a letter report to the:

          •   Senate Committee on Homeland Security and Governmental Affairs; and
          •   Senate Committee on the Judiciary.

      This letter report responded to the Committees’ request for information on any attempts to
      interfere with IG independence or limitations placed on the OIG’s access to documents,
      information, and Agency employees (none reported). The Committees also requested
      information on open OIG audit recommendations; nonpublic, closed OIG reports of
      investigation, audit, or evaluation; OIG reports provided to the Agency for comment but not
      responded to within 60 days (none reported); and whistleblower retaliation allegations (none
      reported).

      Through its participation in CIGIE activities, including the CIGIE Legislative Committee, the OIG
      also worked extensively to provide comments and feedback in response to Congressional
      inquiries submitted to the IG community. OIG also streamlined its internal procedures in
      responding to Congressional correspondence.




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                                                    24

Outreach



      Staff Participation in Activities within the IG Community
      OIG staff members are encouraged to take part in organizations that contribute to the mission of the
      Inspectors General community, as well as their individual professional development. Most staff
      members are actively involved in one or more professional organizations, as well as activities within
      CIGIE.

      The Inspector General is a member of CIGIE, which provides a forum for IGs from over 70
      government agencies to discuss government-wide issues and shared concerns. Collectively, the
      members of CIGIE work toward improving government programs and operations, work that involves,
      for example: comments on proposed legislation; development of projects involving cross-cutting
      issues; and training development. The IG was appointed to the CIGIE Executive Committee as the
      Member-At-Large in January 2015. The IG also serves as a member of CIGIE’s Legislation
      Committee and participates as a member of CIGIE’s Inspection and Evaluation Committee, and is
      the Chair of the Small IG group. The IG has a leadership role on committees and workgroups and
      has initiated group projects to advance and streamline CIGIE practices and processes.

      The Deputy IG continues her leadership role in the Council of Counsels of IGs (CCIG) as one of two
      Vice Chairs to the CCIG for 2015-2016. The Deputy IG is also involved in the CIGIE Records
      Management Working Group and attends the quarterly meetings for three additional CIGIE groups –
      the Assistant Inspectors General for Investigations, Deputy IGs, and the Small OIGs CCIG Working
      Group. The Deputy IG also contributes frequently to requests for assistance throughout the CCIG
      community.

      The OIG Senior IT Auditor and Senior Auditors participate in cross-cutting audit projects and attend
      FAEC meetings and conferences. The IT Auditor attends local ISACA meetings and is actively
      involved in the IT Subcommittee of the FAEC. One Senior Auditor is also a member of the CIGIE
      Roundtable on Inspections and Evaluations, and is an Adjunct Instructor for CIGIE’s Training
      Institute.

      OIG employees are also active in Agency workgroups and task forces, as appropriate.

      Organizational Briefings and Notifications
      The OIG has distributed posters identifying Hotline and contact information and continues to develop
      its Fraud Awareness program to provide training and guidance to FCA employees on reporting
      responsibilities, fraud indicators, methods of reporting, and protections provided to whistleblowers
      under Federal law and policy. OIG has also published several articles on fraud and whistleblower
      topics.




                                FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                     25

OIG Staff




      Staff Development
      OIG employees continually seek ways to improve skills and become knowledgeable in the initiatives
      of the community of Inspectors General. Audit and legal staff must meet continuing education
      requirements. Individual development plans are used to identify long and short-term career goals
      along with specific training and developmental needs. These plans are geared toward enhancing
      individual skills in the performance of official duties, cross training, succession planning and meeting
      the criteria needed to achieve OIG performance goals and objectives.

      The following organizational chart shows the OIG as of March 31, 2016:




                                                     Inspector General
                                                      Elizabeth Dean



           Deputy IG and      Senior Information
                                                      Senior Auditor         Senior Auditor        Management/
           Counsel to the     Technology Auditor                                                  Program Analyst
         Inspector General                             Sonya Cerne           Tori Kaufman
                                 Tammy Rapp                                                           Ava Bell
            Kathy Gallo




                                 FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                      26

Annex




        This annex is provided in accordance with the National Defense Authorization Act for FY 2008.

        This referenced statute requires all Inspectors General appointed under the IG Act to include an
        annex to their semiannual reports as follows:

            1)	 listing all contract audit reports issued during the reporting period containing significant audit
                findings;

            2)	 briefly describing the significant audit findings in the report; and

            3)	 specifying the amounts of costs identified in the report as unsupported, questioned, or
                disallowed.

        Significant audit findings are defined as unsupported, questioned, or disallowed costs in excess of
        $10,000,000, or other findings that the Inspector General determines to be significant. It defines
        contracts as a contract, an order placed under a task or delivery order contract, or a subcontract.

        No contract audit reports meeting these criteria were issued on behalf of the OIG during this
        reporting period.




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                                                        27

Appendix A



     Index of Reporting Requirements


     SECTION                                         TITLE                       Page

     4(a)(2)        Review of legislation and regulations                        22-23

     5(a)(1)        Significant problems, abuses, and deficiencies               None

     5(a)(2)        Recommendations for corrective action                        8-18

     5(a)(3)        Prior recommendations not yet implemented                    17-18

     5(a)(4)        Matters referred to prosecutive authorities                  None

     5(a)(5)        Information unreasonably refused or not provided             None

     5(a)(6)        List of reports issued                                        29

     5(a)(7)        Summaries of significant reports                             9-14

     5(a)(8)        Management decisions with questioned costs                    30

                    Management decisions on recommendations that funds be put
     5(a)(9)                                                                      31
                    to better use

     5(a)(10)       Prior audit reports unresolved                               None

     5(a)(11)       Significant revised management decisions                     None

                    Significant management decisions with which the Inspector
     5(a)(12)                                                                    None
                    General disagreed

     5(a)(13)       Compliance of Agency financial management system             9, 15


     5(a)(14)(15)   Peer reviews conducted of this OIG                            32

     5(a)(16)       Peer reviews conducted by this OIG                            33

                    National Defense Authorization Act of FY 2008 Citation and
     845                                                                          27
                    Requirement



                           FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                28

Appendix B




                           Audit, Inspection, and Evaluation Reports Issued

                                                                               Recommendations
                                  Number of Agreed Upon
              Report                                       Questioned Costs   That Funds Be Put to
                                 Actions/Recommendations
                                                                                   Better Use


      FCA’s Financial
                                            0                    $0                   $0
      Statement FY 2015



      FCA’s Compliance with
                                            0                    $0                   $0
      FISMA 2015


      Human Capital Planning
                                           11                    $0                   $0
      at FCA



      FCA’s Risk Project                    5                    $0                $ 143,200


      FCA’s Process in
      Developing and
      Updating                              3                    $0                   $0
      Agency Policies and
      Procedures

               Total                       19                    $0                $ 143,200




                               FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

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                                                    29

Appendix C




                                      Reports with Questioned Costs


                                                         Number                   Dollar Value


                                                             Recommend­   Questioned    Unsupported
                                                   Reports
                                                                ations      Costs          Costs

     A. For which no management decision has
        been made by the commencement of the         0            0          $0              $0
        reporting period.

     B. Which were issued during the reporting
                                                     0            0          $0              $0
        period.

     Subtotals (A+B)                                 0            0          $0              $0

     C. For which a management decision was
                                                     0            0          $0              $0
        made during the reporting period.

       (i) dollar value of disallowed costs          0            0          $0              $0

       (ii) dollar value of costs not disallowed     0            0          $0              $0

     D. For which no management decision has
        been made by the end of the reporting        0            0          $0              $0
        period.

     E. For which no management decision was
                                                     0            0          $0              $0
        made within six months of issuance.




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                                                     30

Appendix D




                           Reports with Recommendations that Funds
                                      Be Put to Better Use


                                                      Number of      Number of       Dollar
                                                       Reports    Recommendations    Value

       A. For which no management decision has been
          made by the commencement of the reporting      0                 0           $0
          period.

       B. Which were issued during the reporting
                                                         1                 5        $ 143,200
          period.

       Subtotals (A+B)                                   1                 5        $ 143,200

       C. For which a management decision was made
                                                         0                 0           $0
          during the reporting period.

         (i) dollar value of recommendations that
                                                         0                 0           $0
             were agreed to by management

            - based on proposed management action        0                 0           $0

            - based on proposed legislative action       0                 0           $0

         (ii) dollar value of recommendations that
                                                         0                 0           $0
              were not agreed to by management

       D. For which no management decision has been
                                                         0                 0           $0
          made by the end of the reporting period.

       E. For which no management decision was
                                                         0                 0           $0
          made within six months of issuance.




                              FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

                                    OCTOBER 1, 2015 ─ MARCH 31, 2016
	
                                                   31

Appendix E




                              Peer Reviews Conducted of this Office

                                                                      Function       Peer Review
             Peer Review Performed By            Date of Report
                                                                      Reviewed         Rating

      Architect of the Capitol
                                                  June 26, 2013         Audit           Pass
      Office of Inspector General


      U.S. Securities and Exchange Commission
                                                December 26, 2007   Investigations      Pass
      Office of Inspector General




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                                                    32

Appendix F




                             Peer Reviews Conducted by this Office

                                                                  Function   Peer Review
                   Peer Review Of               Date of Report
                                                                  Reviewed     Rating


      U.S. International Trade Commission
                                               January 16, 2013     Audit       Pass
      Office of Inspector General


      Consumer Product Safety Commission
                                                May 23, 2011        Audit       Pass
      Office of Inspector General




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                                                   33

Appendix G




               FCA ORGANIZATIONAL CHART





              FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

                    OCTOBER 1, 2015 ─ MARCH 31, 2016
	
                                   34

Appendix H




                                 Glossary of Terms


         Agency          – Farm Credit Administration
         CIGIE           – Council of the Inspectors General on Integrity and Efficiency
         EEOI            – Equal Employment Opportunity and Inclusion
         eOPF            – Electronic Official Personnel Folder
         Farm Credit Act – Farm Credit Act of 1971, as amended
         Farmer Mac      – Federal Agricultural Mortgage Corporation
         FCA             – Farm Credit Administration
         FCS             – Farm Credit System
         FISMA           – Federal Information Security Modernization Act
         FY              – Fiscal Year
         H.R.            – House of Representatives
         IG              – Inspector General
         IG Act          – Inspector General Act of 1978, as amended
         IRM             – Information Resources Management
         IT              – Information Technology
         NIST            – National Institute of Standards and Technology
         OE              – Office of Examination
         OIG             – Office of Inspector General
         OIT             – Office of Information Technology
         OMB             – Office of Management and Budget
         OMS             – Office of Management Services
         PPM             – Policies and Procedures
         Pub. L.         – Public Law
         RSD             – Risk Supervision Division
         S.              – Senate
         System          – Farm Credit System




                        FCA OIG SEMIANNUAL REPORT TO THE CONGRESS

                              OCTOBER 1, 2015 ─ MARCH 31, 2016
	
                                             35

           R E P O R T  
                                   

    Fraud    |    Waste    |    Abuse    |    Mismanagement 
 




                                                  
                                   


            FARM CREDIT ADMINISTRATION

 
            OFFICE OF INSPECTOR GENERAL
 

                                   




         Phone:  Toll Free (800) 437‐7322; (703) 883‐4316

 
                                        
                        Fax:  (703) 883‐4059

 
                                        
                  E‐mail:  fca‐ig‐hotline@rcn.com 
                                        
                Mail:  Farm Credit Administration

 
                    Office of Inspector General

 
                       1501 Farm Credit Drive

 
                      McLean, VA  22102‐5090