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Strategic GoalsTo accomplish our mission, the OIG identified four strategic goals in our Strategic Plan.The following summarizes our strategic goals and related outcomes during this reportingperiod.Goal 1: Detect & Deter Fraud, Waste & AbuseDetecting and deterring fraud, waste, abuse, and mismanagement is critical to the OIG’smission. We employ a multi-faceted approach in support of this goal: Performs risk-based audits, inspections, and evaluationsReinforces the OIG as a safe zone for reporting fraud, waste, and abuseListens to and understands the needs, challenges, and interests of ourstakeholdersDuring this reporting period, we issued three inspection and evaluation reports, withfour reviews in progress. The in-progress reviews include an evaluation of FCA’scompliance with the Federal Information Security Modernization Act of 2014 (FISMA),FCA’s financial audit, an Office of Examination (OE) benchmarking study, and a physicalsecurity inspection of headquarters. We also completed our internal quality assurancereview and an external peer review report.The OIG hotline is available 24/7 to confidentially receive tips and complaints aboutfraud, waste, or abuse relating to FCA programs and operations. The OIG has telephoneand fax numbers, as well as an independent hotline email account available to thepublic. Only OIG staff have access to these avenues that allow individuals to reportallegations to the OIG directly and confidentially.Communication with Agency stakeholders is another key aspect of the OIG’s oversight.During our reviews, we continually meet with Agency officials to keep them informedof our progress, results, and areas for improvement. The IG meets quarterly, or asneeded, with FCA Board Members to discuss work products, priorities, and concerns.The IG and OIG staff also frequently interact with Agency staff and managers to obtainan understanding of their needs and challenges and to explain our oversight interests.An OIG goal is to work diligently with Agency management to obtain agreement onplanned actions addressing any recommendations resulting from an audit, inspection,or evaluation. Management identifies planned actions they will take to address anyrecommendations before we issue a final report. Once the OIG is satisfied withmanagement’s planned actions, we convert our “recommendation” to an “agreed-uponaction” before issuing our final report. In some instances, corrective action is completedprior to issuing a final report. We are pleased to recognize completed actions in thefinal report. During this reporting period, Agency management agreed with all ourrecommendations and developed corrective action plans.FCA OIG Semiannual Report to CongressApril 1, 2018—September 30, 2018https://www.fca.gov/home/inspector.html6

Goal 2: Investigate & Protect Against WrongdoingStrategic GoalsThe OIG conducts timely, relevant, and high-quality investigations. Our investigativereports fairly and accurately report our findings and may offer actions for Agencyconsideration to correct and deter future misconduct, fraud, waste, or abuse.The OIG employs the following actions in support of this goal: Guards confidentialityProduces timely, clear, focused, and factual reports of investigationProvides outreach on how to prevent fraud, waste, and abuseOur investigative procedures and internal controls are designed, to the extent possible,to guard the confidentiality of all complainants and persons involved in theinvestigative process. As provided by the IG Act, the OIG will not disclose the identityof a complainant without the consent of the complainant, unless the IG determinesthat such disclosure is unavoidable during an investigation or unless the complainantwaives anonymity. To ensure all relevant aspects of the investigation are accuratelyand objectively addressed in our reports, our investigations manual describes, in part:the process for developing an investigation plan and obtaining IG approval; legalrequirements during an investigation; communications and case management;reporting procedures; and referrals to FCA. The OIG follows the Council of InspectorsGeneral on Integrity and Efficiency (CIGIE) Quality Standards for Investigations asguidance for all its investigative activity.OIG evaluates all complaints, examining jurisdictional issues, the nature of theallegation, and other factors in determining whether to open an investigation. The OIGalso assesses availability of records and other factors to determine whether thecomplaint includes allegations of criminal, civil, or administrative violations thatnecessitate a formal investigation. We also receive complaints from borrowers orpotential borrowers in the System regarding their lending rights or allegedwrongdoing in a System institution. We refer these complaints to the FCA Office ofCongressional and Public Affairs (OCPA), as required by Agency policy, and follow up,as appropriate. During this reporting period, the OIG reviewed 20 complaints andconducted one formal investigation and two preliminary investigations.The OIG participates in FCA’s new employee training to discuss our investigativeprogram, and we distribute posters identifying hotline contact information, as well asOffice of Special Counsel notices on whistleblowing protections.FCA OIG Semiannual Report to CongressApril 1, 2018—September 30, 2018https://www.fca.gov/home/inspector.html7

Goal 3: Promote Quality & ValueStrategic GoalsAs the safety and soundness regulator of the System, FCA ensures the well-being andfuture of agricultural producers and rural communities. OIG is committed to promotingFCA’s quality of oversight and maximizing the value of funds invested in such oversight.The OIG performs the following actions in support of this goal: Creates benchmarks for improved Agency decision makingEnsures the OIG and FCA are models for good governmentProduces OIG products that are timely, relevant, reasonable, and helpfulDuring this reporting period, the OIG completed a benchmarking study of informationtechnology (IT) spending and use of contractors. The purpose of this benchmarkingstudy was to determine the changes in IT spending and use of contractors over thepast three years and compare FCA’s IT budget and use of contractors to other federalfinancial regulators.The OIG is continuously working to ensure compliance with standards, improveinternal processes, and advance professional competencies. During this period, wecompleted an internal quality assurance review and continued to review and updateour office directives. We put a priority on staff training to meet requirements forprofessional education and gain new skills.OIG products are generally completed in six months or less. Our audit, inspection, andevaluation work is risk based to align with the top management and performancechallenges at the Agency.FCA OIG Semiannual Report to CongressApril 1, 2018—September 30, 2018https://www.fca.gov/home/inspector.html8

Strategic GoalsThe OIG continuously strives to advance excellence and innovation in our ownorganization and operations.Goal 4: Advance FCA s FutureThe OIG employs the following actions in support of this goal: Recruits, retains, and empowers a diverse workforcePromotes leadership, vision, and expertiseLeverages technologyThe OIG continuously works to retain and empower a diverse workforce. Although theOIG did not recruit for positions during this reporting period, the IAA with TIGTA andcross-training opportunities in the IG community provide opportunities for diversityin our workforce.OIG staff assume leadership roles in the IG community by participating on variousCIGIE committees, workgroups, and initiatives. Two senior auditors taught a class oninterviewing techniques for CIGIE. Another auditor participated in the workgroup thatplanned the 40th Commemoration of the IG Act. The IG conducted several mediationsfor the sharing neutrals program in the government. All OIG staff maintain variousprofessional certifications in different areas of expertise, including: auditing, ITauditing, accounting, investigations, fraud, law, and mediation.One example of the OIG leveraging technology is our revised OIG website page, whichwe revamped to increase the usability and transparency of our information for thepublic. In addition, the OIG continued its exploration of other software solutions toincrease the efficiency of our audits, inspections, evaluations, and investigations. Weare closely following the efforts of the CIGIE audit committee regarding obtaininggroup license fees for such automated solutions at a discount. We want to ensure thatthe benefits of any new software solution will justify the cost.FCA OIG Semiannual Report to CongressApril 1, 2018—September 30, 2018https://www.fca.gov/home/inspector.html9

Performance MeasuresMeasuring Our PerformanceThe following discussion describes the performance measures of our office, as set forthin our Strategic Plan for FYs 2018-2019, and the actions we have taken to meet thesemeasures.PerformanceMeasureActions TakenEfficienciesHave been gained by using shared services with TIGTA.Completion timeof OIG workassignmentsHas been appropriate based on the complexity or uniquenature of each assignment. Most of our audit, inspection, andevaluation reports are completed within six months or less. Allour required reports have been completed on time. Weconducted two preliminary investigations and completed bothwithin one month of receiving the initial complaint. Weconducted one formal investigation and issued the report ofinvestigation within five months of the initial complaints.Audit, inspection,and evaluationrecommendationsHave been 100 percent accepted by the Agency and convertedto agreed-upon actions.ComplaintsactivityHas increased significantly in this reporting period, indicatingemployees have confidence in the OIG and its ability toinvestigate wrongdoing while guarding their confidentiality.Interaction withCongressContinues with our semiannual reporting to Congress. Ourcongressional agricultural oversight committees in both theSenate and House had no questions or concerns about themost recent report.Communicationwith the FCABoard andmanagementIs an ongoing priority of our office. We held quarterly briefingswith each FCA Board Member and their executive assistants.We regularly communicate with FCA management through ouraudit, inspection, evaluation, and investigative work. We metwith OE management and attended the all-staff OE conferencethis fall in Seattle to present the mission and philosophy of theOIG.FCA OIG Semiannual Report to CongressApril 1, 2018—September 30, 2018https://www.fca.gov/home/inspector.html10

Measuring Our PerformancePerformance MeasuresPerformanceMeasureActions TakenAligning auditplanning withFCA’s topmanagementandperformancechallengesIs important to ensure that our work is risk based and that itaddresses the most significant challenges of the Agency. In thisreport, we cite the relevant management and performancechallenge in discussing each audit, inspection, and evaluation.OutreacheffortsHave included two quarterly issues of the dIG, our officenewsletter with articles about what we do, how we do it, andwhy we do it, as well as examples of fraud, waste and abuse ingovernment. We met with the OE management team where theIG and the investigator presented their perspectives on theroles of the OIG and investigator and answered questions. TheIG and investigator made this same presentation at the all-staffOE conference this fall in Seattle.Participationin CIGIEIs an integral part of our office objectives. Every staff memberis active on one or two CIGIE committees or initiatives, includingparticipating in CIGIE’s training program and conducting peerreviews. Interacting with the wider IG community is a necessaryand beneficial part of our mission.Training takenThis reporting period included audit, investigative, IT, and legaltraining. Staff members are cognizant of the required trainingthey must take to keep up their skills and ensure that all theirtraining requirements have been met.Diversity ofOIG staffwhen hiringopportunitiesariseIs a goal of our office; however, we have had no hiring thisreporting period. Our shared services agreement with TIGTAand cross-training initiatives in the IG community provideopportunities to work with a diverse staff.FCA OIG Semiannual Report to CongressApril 1, 2018—September 30, 2018https://www.fca.gov/home/inspector.html11

Audits, Inspections, and EvaluationsThis reporting period, the OIG continued to provide FCA with high-quality products.We issued three inspection and evaluation reports, with a total of three agreed-uponactions with FCA management. We also have four reviews in progress.Summary The OIG found no significant problems, abuses, or deficiencies relating to theadministration of programs and operations.The OIG did not identify any questioned costs, unsupported costs, ordisallowed costs during this reporting period.The OIG conducts all audits in accordance with Government Auditing Standards issued bythe Comptroller General of the United States for audits of federal organizations, programs,activities, and functions. We conduct inspections and evaluations in accordance with CIGIE’sQuality Standards for Inspection and Evaluation.Copies of most OIG reports are available on our website, by contacting the OIG at (703)883-4030, or by email. We offer a free subscription service that provides automaticnotification by email when a new report or other information is posted to the OIG website.Finally, we post all our public reports and information on Oversight.gov. Oversight.gov is apublicly accessible, searchable website containing the work of federal Offices of InspectorsGeneral.Below is a listing of the audit, inspection, and evaluation reports issued during thisreporting period.Reports IssuedTable 1: Audit, Inspection, and Evaluation Reports IssuedNumber ofAgreed-uponActions/RecommendationsReport TitleInformation Technology Benchmarking Study0Inspection of Physical Security in the Farm Credit Administration’sSacramento Field Office3Inspection of Physical Security in the Farm Credit Administration’sDallas Field Office0Total3FCA OIG Semiannual Report to CongressApril 1, 2018—September 30, 2018https://www.fca.gov/home/inspector.html12

Audits, Inspections, and EvaluationsReports IssuedInformation Technology Benchmarking StudyEvaluationJustificationIT spending, including the use of IT contractors, has increased atFCA over the past few years. The purpose of this benchmarkingstudy is to determine the IT budget changes over the past threeyears and compare FCA’s IT budget and use of contractors toother federal financial regulators.EvaluationObjectiveThe objective of this evaluation is to compare FCA’s IT budgetand use of contractors to other federal financial regulators.ManagementChallengeThe OIG identified Information Technology as one of four topmanagement and performance challenges at FCA. This challengeis the ability to leverage investments in IT while maintaining asecure environment.While cybersecurity threats are increasing, FCA is increasinglyreliant on IT software to identify and analyze potential risks fromthe sensitive financial data that the Agency receives from theSystem. Hence, it is imperative that FCA has the necessary IT toolsand staff to protect its systems and data from cybersecuritythreats and to operate more efficiently and effectively. At thesame time, the Agency must be prudent and responsible with itsspending.ConclusionsOur benchmarking study reveals that the budget of FCA’s Officeof Information Technology (OIT) has grown at a much higherpercentage over the past three years than all other FCA officebudgets.Of

and accomplishments of the Office of Inspector General (OIG) in the Farm Credit Administration (FCA or Agency) for the period from April 1, 2018 through September 30, 2018. This year marked the 40th anniversary of the Inspector General Act and the creation of the original 12 Offices of Inspector General. The FCA OIG was established in 1989.