Farm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090
For Immediate Release
Contact: Martha Schober or Christine Quinn, 703-883-4056
Web site: www.fca.gov
FCA Board Hears Report on Audit of FCS Building Association's 2006 Financial Statements
McLEAN, Va., April 12, 2007 — The Farm Credit Administration (FCA) Board today listened to a report on the audit of the Farm Credit System (FCS) Building Association’s 2006 financial statements.
The audit report concluded that the financial statements for calendar years 2006 and 2005 fairly present the financial position of the FCS Building Association and the results of its operations and cash flows for those years. The audit was conducted by Cherry, Bekaert, and Holland, Certified Public Accountants and Consultants, an independent accounting firm. The firm conducted its audit in accordance with generally accepted auditing standards.
The FCA Board approved four notational votes in March. Notational votes are actions taken by the FCA Board between Board meetings.
On March 2, the Board voted to notify Farm Credit West, ACA, that FCA does not object to the association’s proposal to issue an additional $100 million of Class H preferred stock.
On March 12, the Board voted to notify U.S. AgBank, FCB, that FCA does not object to AgBank’s issuance of $225 million of Class A perpetual noncumulative fixed-to-floating-rate preferred stock, series 1, for sale and resale only to qualified institutional buyers or accredited investors.
On April 5, the FCA Board voted to rescind five bookletters addressing FCS institution director and senior officer compensation. (Bookletters are documents issued by an agency official that communicate FCA’s legal interpretations and the Agency’s position on specific issues.) Four of the bookletters are outdated because they address requirements that apply only to specific past years. The other bookletter is obsolete because it does not reflect changes revising the rules on director and senior officer compensation that were superceded by a governance regulation that FCA issued in January 2006.
On March 26, the FCA Board voted to authorize the Federal Agricultural Mortgage Corporation to purchase a nonprogram investment with certain conditions.
The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System. FCA charters, regulates, and examines the 107 banks, associations, and service corporations of the FCS. System institutions make loans to agricultural producers and their cooperatives nationwide. Members of the FCA Board are Nancy C. Pellett, Chairman and CEO; Dallas P. Tonsager; and Leland A. Strom.
Note: FCA news releases are available on the Internet. Access the FCA Web site at www.fca.gov.