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News ReleaseFarm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090

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For Immediate Release NR 12-01 (01-12-12)
Contact: Mike Stokke or Christine Quinn, 703-883-4056
FCA Board Issues Proposed Rule on System Audit Committee

McLEAN, Va., January 12, 2012 —The Farm Credit Administration (FCA) Board today approved a proposed rule that would amend the agency’s regulations on the authorities of the System Audit Committee (SAC) of the Federal Farm Credit Banks Funding Corporation (Funding Corporation).

The proposed rule would

The primary responsibility of the SAC is to oversee the Funding Corporation’s preparation of Systemwide reports to investors and to review the System’s combined financial reports before they are issued. The purpose of the Funding Corporation, which is owned by the four System banks and acts as an agent on behalf of the banks, is to market the debt securities that the banks sell to raise the funds that System institutions lend to farmers and other borrowers.

Following a 30-day period for congressional review, the proposed rule will be published in the Federal Register for a 60-day comment period. The public may submit comments by electronic mail to, through the Pending Regulations section of FCA’s website at, or through the federal government Web portal at

The public may also submit comments by mail to Gary K. Van Meter, Director, Office of Regulatory Policy, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102-5090. The public may read submitted comments at the FCA office in McLean, Va., or on FCA’s website at

Auditor’s Report on FCA’s Fiscal Year 2011/10 Financial Statements

The Farm Credit Administration (FCA) Board today heard the auditor’s report on the audit of FCA’s fiscal year 2011/2010 financial statements.

Brown & Company CPAs, PLLC, the independent accounting firm that performed the financial audit, concluded that the agency’s principal financial statements presented fairly, in all material respects, the financial position of FCA as of September 30, 2011 and 2010, in conformity with generally accepted accounting principles.

In addition, the firm found no material weaknesses in internal control over financial reporting and noted no reportable instances of statutory or regulatory noncompliance that could have a direct and material effect on the determination of financial statement amounts.

FCA’s Inspector General concurred with the reports and stated that Brown & Company’s work provided a reasonable basis for its opinion.

Notational Votes

Since the December 8, 2011, FCA Board meeting, two notational votes have occurred. Notational votes are actions the FCA Board takes between Board meetings.

The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System and the Federal Agricultural Mortgage Corporation (Farmer Mac). FCA charters, regulates, and examines the 95 banks, associations, service corporations and special-purpose entities of the Farm Credit System, which makes loans to agricultural producers and their cooperatives nationwide. This includes Farmer Mac, which provides a secondary market for agricultural real estate loans, rural housing mortgage loans, and certain rural utility loans. Members of the FCA Board are Leland A. Strom, Chairman and CEO; Kenneth A. Spearman; and Jill Long Thompson.

Note: FCA news releases are available on the Web at