Board Policy Statements, 54638-54656 [2011-22203]
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54638
Federal Register / Vol. 76, No. 170 / Thursday, September 1, 2011 / Rules and Regulations
FARM CREDIT ADMINISTRATION
Communications During Rulemaking
12 CFR Chapter VI
FCA–PS–37
Effective Date: 08–JUL–11.
Effect on Previous Actions: Replaces
previous Farm Credit Administration
(FCA or Agency) Board policy on public
communications during a rulemaking,
adopted March 25th, 1992. See 57 FR
11083, April 1, 1992. Amended by NV–
11–15 (8–JUL–11).
Source of Authority: None.
The FCA Board finds that it is in the
public interest and consistent with the
requirements of the Administrative
Procedure Act to revise its policy on
communications with the public during
the rulemaking process.
Board Policy Statements
Farm Credit Administration.
Policy statements.
AGENCY:
ACTION:
The Farm Credit
Administration (FCA) Board recently
undertook its 5-year review of FCA
Board policy statements. This review
resulted in revisions to 14 policy
statements that are mostly technical,
grammatical, or syntactical. However, a
few of the revisions add clarity to the
policy statements and other revisions
incorporate changes required either by
new laws or by changes in the
functional statement of operations for
some FCA offices.
DATES: The effective date is indicated on
each individual policy statement set
forth below.
FOR FURTHER INFORMATION CONTACT:
Wendy Laguarda, Assistant General
Counsel, Office of General Counsel,
Farm Credit Administration, 1501 Farm
Credit Drive, McLean Virginia 22102–
5090, (703) 883–4020, TTY (703) 883–
4020.
SUMMARY:
A list of
the 14 revised FCA Board policy
statements and the text of each are set
forth below in their entirety. All FCA
Board policy statements may be viewed
on FCA’s Web site. Please go to https://
www.fca.gov. Then select ‘‘Laws &
Regulations,’’ then select ‘‘FCA
Handbook,’’ then select ‘‘FCA Board
Policy Statements.’’
SUPPLEMENTARY INFORMATION:
srobinson on DSK4SPTVN1PROD with RULES4
FCA Board Policy Statements
FCA–PS–37 Communications During
Rulemaking
FCA–PS–41 Alternative Means of Dispute
Resolution
FCA–PS–44 Travel
FCA–PS–53 Examination Philosophy
FCA–PS–59 Regulatory Philosophy
FCA–PS–62 Equal Employment
Opportunity and Diversity
FCA–PS–64 Rules for the Transaction of
Business of the Farm Credit
Administration Board
FCA–PS–65 Release of Consolidated
Reporting System Information
FCA–PS–68 FCS Building Association
Management Operations Policies and
Practices
FCA–PS–71 Disaster Relief Efforts by Farm
Credit Institutions
FCA–PS–72 Financial Institution Rating
System (FIRS)
FCA–PS–77 Borrower Privacy
FCA–PS–78 Official Names of Farm Credit
Institutions
FCA–PS–79 Consideration and Referral of
Supervisory Strategies and Enforcement
Actions
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The FCA Board Hereby Adopts the
Following Policy Statement
In keeping with the need to ensure an
open, freely accessible, and wellinformed rulemaking process while
balancing the need for impartiality and
fairness, the FCA adopts the following
guidelines governing substantive oral
communications between the public
and Board members and staff during the
course of a related rulemaking.
Before a Rulemaking Begins
Unrestricted communication with the
public before rulemaking begins
supports and promotes the Agency’s
efforts to design creative and effective
regulatory policy. No specific guidelines
apply to that communication.
From Publication of Notice of Proposed
Rulemaking to the End of the Comment
Period
After a particular rulemaking has
begun with publication of a notice of
proposed rulemaking (including
publication of an advance notice of
proposed rulemaking), FCA encourages
members of the public to provide
written comments during the public
comment period. All written comments
are placed in a public file, where they
are available for examination and
copying during normal business hours.
The comments receive careful
consideration and become part of the
public record of the rulemaking.
Where appropriate, FCA may also
conduct public hearings or open
meetings to take testimony or hold
discussions on a rulemaking. Such
opportunities for comment from the
public will be announced in advance
and the comments received will be
placed in the public rulemaking file.
Substantive oral communications
during the comment period between
FCA personnel, including Board
members and staff, and members of the
public regarding the subject of an
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ongoing rulemaking will be summarized
in writing and placed in the public
rulemaking file. While FCA personnel
are always available to explain or clarify
proposed rules, if an individual wants
to engage FCA personnel in substantive
discussion concerning a published
proposed rule, he or she should first file
a written comment covering the matter
to be discussed, particularly if he or she
has not already filed a written comment.
If new substantive comments are
discussed, FCA staff will reduce the
substance of such comments to writing,
promptly place it in the public
rulemaking file, and urge the individual
to submit a written comment.
From the Close of the Comment Period
to the Adoption of the Final Rule
From the close of the comment period
until adoption of the final rule,
substantive discussions between
members of the public and FCA
personnel relating to the proposed rule
should be curtailed. In the interest of
fairness, if new facts or arguments must
be brought to the attention of the FCA,
the communication must be in writing
so that it can promptly be placed in the
public rulemaking file.
FCA believes these guidelines will
help ensure a complete rulemaking
record for future agency consideration
of the rule or in the event of court
review. Further, FCA strongly believes
that the rulemaking process must be
open and evenhanded in order to avoid
even the appearance of impropriety or
undue influence that might arise from
private communication during certain
periods. Finally, if a substantive
comment on a proposed rule were
transmitted to FCA in a private
communication that did not become
part of the public record, other members
of the public would not have an
opportunity to respond to any new
arguments or facts contained in that
communication. Because FCA believes
that its rulemaking process benefits
from give and take among commenters
who are able to consider each others’
comments, this policy statement
requires all comments to be placed in
the public rulemaking file.
This policy statement does not apply
to public communications regarding any
rulemaking issue unless and until the
matter becomes the subject of a notice
of proposed rulemaking. Nothing in the
policy statement is meant to affect the
ability of FCA to use negotiated
rulemakings, open meetings or other
types of public forums to augment its
rulemaking under section 553 of the
Administrative Procedure Act.
Dated this 8th day of July 2011.
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By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Alternative Means of Dispute
Resolution
FCA–PS–41
Effective Date: 8–JUL–11.
Effect on Previous Action: Originally
adopted 16–JUL–92 (see 57 FR 33198,
July 27, 1992); amended 30–MAY–96;
amended 10–FEB–97; amended by NV–
11–15 (8–JUL–11).
Source of Authority: Administrative
Dispute Resolution Act of 1996, Public Law
104–320, 110 Stat. 3870 (1996), and codified
at 5 U.S.C. 571 et seq.
The Administrative Dispute
Resolution Act of 1996 (Act), addresses
the concern that traditional methods of
dispute resolution, such as litigation
and administrative adjudication, have
become increasingly time-consuming
and expensive. The Act authorizes and
encourages greater use of alternative
means of dispute resolution (ADR),
requiring each Federal agency to adopt
a policy addressing the use of ADR.
ADR consists of informal, voluntary
procedures used by parties who seek to
resolve their disputes by consent. Such
procedures include, but are not limited
to, mediation, conciliation, facilitation,
fact-finding, arbitration, and mini-trials,
or any combination thereof. By
emphasizing the common goals of the
parties and fostering an atmosphere of
cooperation, ADR can offer a less
contentious and more expeditious
alternative to traditional methods of
dispute resolution such as litigation and
administrative adjudication.
The use of ADR in appropriate
circumstances is consistent with the
Farm Credit Administration’s (FCA or
Agency) mission as an agency. To
promote a safe and sound, competitive
Farm Credit System, the FCA always
strives to effectively and efficiently
manage its resources. By expediting the
resolution of certain disputes, ADR can
reduce the FCA’s transaction costs,
increase the FCA’s productivity, and
help the FCA accomplish its goals.
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The FCA Board Hereby Adopts the
Following Policy Statement
It is the policy of the FCA to resolve
disputes in an effective and efficient
manner. Many of the disputes
encountered by the FCA are resolved
most effectively and efficiently through
settlement negotiations between the
FCA and the other parties to the
disputes prior to the initiation, or in the
early stages of, more formal litigation or
administrative adjudication. The FCA
will continue to use settlement
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negotiations as a method of dispute
resolution.
In addition, the FCA will consider
whether it is appropriate to use ADR
when a dispute arises. In assessing the
advisability of using ADR procedures, as
defined in 5 U.S.C. 571(3), the FCA will
consider whether such procedures are
likely to reduce the FCA’s transaction
costs, increase the FCA’s productivity,
and help the FCA accomplish its goals
of effective regulations and policies and
the enhancement of FCA’s effectiveness
and cost efficiency. The FCA will also
consider the factors set forth in 5 U.S.C.
572(b) in deciding whether it is
appropriate to use such ADR
procedures.
The FCA’s Dispute Resolution
Specialist (ADR Specialist), designated
by the Chairman, is responsible for the
implementation of this policy statement.
The ADR Specialist is available to assist
FCA personnel in considering the
appropriate application of ADR
procedures. Before deciding whether it
is appropriate to use an ADR procedure,
FCA personnel will consult with, and
obtain the concurrence of, the ADR
Specialist or his or her designee.
The ADR Specialist and those FCA
personnel involved in resolving
disputes are encouraged to attend
educational and training programs
relating to the theory and application of
ADR on a regular basis, as the FCA
budget permits.
Based on the voluntary nature of
ADR, all parties to a dispute must agree
to use an ADR procedure before it can
be initiated.
Dated This 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Travel
FCA–PS–44
Effective Date: 8–JUL–11.
Effect on Previous Actions: Originally
adopted 13–JUN–91; amended 12–
NOV–92; amended by NV–11–15 (8–
JUL–11).
Source of Authority: 5 U.S.C. 7351, 7353;
5 U.S.C. App. (Ethics in Government Act of
1978); E.O. 12674, 54 FR 15159, 3 CFR, 1989
Comp., p. 215, as modified by E.O. 12731, 55
FR 42547, 3 CFR, 1990 Comp., p. 306; 12
U.S.C. 2242 (Section 5.8 of the Farm Credit
Act of 1971, as amended), 41 CFR part 301.
The FCA Board Hereby Adopts the
Following Policy Statement
Members of the Farm Credit
Administration (FCA or Agency) Board
are not subject to the same requirements
regarding allowances for travel and
subsistence that generally apply to
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officers and employees of the United
States (§ 5.8 of the Farm Credit Act of
1971, as amended). Nevertheless, it is
the general policy of the FCA Board
(Board) that Board members will travel
on official business in the most
economical fashion reasonable under
the circumstances.
FCA Board members are subject to
Federal laws, rules, and Executive
Orders relating to conflicts of interest
that may result from accepting gifts,
including travel related expenses, from
outside sources. Generally, Board
members may not accept anything of
value from:
• A person seeking official action
from, doing business with, or
conducting activities regulated by the
FCA, or
• A person whose interests may be
substantially affected by the
performance or nonperformance of our
official duties.
Such persons are prohibited sources.
(See Executive Order 12674, as
amended; 5 U.S.C. 7353; and 5 CFR part
2635, the Executive Branch-wide
standards of ethical conduct issued by
the Office of Government Ethics.) An
organization is also a prohibited source
if more than half of its members are
prohibited sources.
The gift rule under the standards of
ethical conduct and the Agency’s gift
acceptance authority at 31 U.S.C. 1353
outline the limited circumstances in
which government officials may accept
gifts and the payment of travel expenses
from outside sources. Unless an
exception applies, ethics rules prevent
Board members from accepting gifts
offered because of their official
positions. Under no circumstances may
Board members accept anything of value
in return for being influenced in the
performance of an official act. The aim
of these rules is to prevent an actual
conflict of interest or the appearance of
a conflict and to uphold public
confidence in the integrity of the
Government and the Agency.
Except as noted above, third parties
may not pay for official Agency
expenditures. Because the Agency is
responsible for the cost of conducting
official business, Board members will
ensure that the Agency is billed directly
for travel expenses whenever possible
(for example, by using a Government
issued credit card for travel expenses).
On those occasions when direct Agency
payment is impossible or impractical
(for example, a large group business
dinner arranged and paid for in advance
by the organizer), Board members will
promptly notify the Agency of the
obligation and ensure that the payer is
promptly reimbursed. Board Members
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recognize that it is important not to
create the impression that a third party,
particularly a prohibited source, is
paying for their expenses.
Travel
Transportation
Board members will use less than
first-class accommodations for all
modes of transportation except in
circumstances where:
1. A Board member must use firstclass accommodations because no other
space accommodations are reasonably
available or where other practical
considerations exist (such as to
accommodate a disability or other
special need);
2. Exceptional security circumstances
require it;
3. The conduct of Agency business
requires it; or
4. A Board member receives first-class
travel benefits on an unsolicited basis
from a carrier (such as free first-class
coupons) and the benefit cannot be used
by the Agency either in the present or
the future, cannot be redeemed for cash
value, and does not require the
redemption of official miles. Under
these circumstances, Board members
can use the first-class benefit for either
official or personal travel.
Board members will use a commercial
charter flight at Agency expense only
when no commercially scheduled
flights are available in time to meet the
requirements of the travel or when the
charter flight would be more economical
than a commercial flight. Board
members will avoid the use of private
aircraft whenever possible and use them
only where commercial or charter
flights are not reasonably available or
would impose undue hardships. When
reporting travel expenses, Board
members must adequately justify the
use of a commercial charter flight,
private aircraft, or first-class
accommodations.
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Lodging
When available and practical, Board
members will book lodging at the
Government rate or another available
reduced rate at hotels and motels. When
attending a convention, meeting, or
other official activity, Board members
will ordinarily obtain lodging at the
hotel or motel holding the activity even
if reduced rates are available elsewhere.
Board members may also book more
than one room when necessary for the
conduct of official business on the
premises.
The Agency will not ordinarily
reimburse Board members for lodging in
the metropolitan Washington, DC, area.
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However, lodging may be necessary to
take full advantage of a conference.
Other Expenses for Official Activities
The FCA will reimburse Board
members for the usual and reasonable
expenses incurred as a consequence of
official activities in the Washington, DC,
metropolitan area and in other
locations. The Agency will allow the
repayment of expenses for:
1. Transportation costs;
2. Meal costs;
3. Registration fees or other fees
assessed for attendance or participation;
4. The cost of miscellaneous supplies
needed to participate in a particular
function or activity; and
5. Other costs we incur by
participating in official activities.
The Agency will not allow
reimbursement of expenses for official
activity incurred on behalf of other
persons, including relatives, except as
provided in the Board policy on Official
Function (Representation and
Reception) Expenses.
Form of Payment
Board members will arrange for
official travel using the Agency’s travel
management system whenever possible.
Although Board members may use cash
to pay for official travel expenses and
seek repayment from the Agency
afterwards, whenever possible, the
preferred method of payment will be the
use of the Government-issued credit
card for all official travel expenses.
Receipts
When filing claims for reimbursement
of travel expenses, Board members will
provide receipts for expenses as
normally required of other FCA
employees under the Federal Travel
Regulation, which currently requires
receipts for all lodging and travel
expenses over $75. However, failure to
provide a receipt as normally required
is not grounds for denial of a claim. If
a receipt is not available, Board
members will provide a statement
explaining the nature and amount of the
expense and the reason for not having
a receipt.
Combining Official Business Travel
With Personal Activities
Although it is permissible to engage
in personal activities while on official
travel, the purpose of the trip must
always be the need to conduct official
business. The Agency pays for travel
and related expenses incurred in
performing official business. However,
the Agency may not pay for personal
expenses incurred while on official
travel. Therefore, it is important to
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record and allocate expenses carefully
to ensure that official expenses are
clearly differentiated from personal
expenses. Proper handling of Agency
expenses is always important, but
particularly so when engaging in
personal activities while on official
Agency business.
The Board is aware that, in certain
circumstances, engaging in personal
activities while on official travel could
create an appearance that personal
activities, not official business,
prompted the trip. When Board
members take a trip to conduct official
business, it is usually clear from the
nature of the business that the trip is
proper and necessary. If there are
concerns that personal activities during
the trip might suggest otherwise, Board
members will consult the DAEO to
avoid a possible appearance of
impropriety. The Board understands
that engaging in official travel that
involves a given destination (for
example, our home state) on a
disproportionate basis may raise
questions about whether the travel truly
is necessary. Again, Board members will
consult with the DAEO about such
concerns.
Dated This 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Examination Philosophy
FCA–PS–53
Effective Date: 08–JUL–11.
Effect on Previous Action: Responds
to NV 93–04 (15–JAN–93) and Amends
FCA Policy Statement 53 dated 15–JUL–
93; amended by NV–11–15 (8–JUL–11).
Source of Authority: Sections 5.9 and 5.19
of the Farm Credit Act of 1971, as amended.
The Farm Credit Administration (FCA
or Agency) Board Hereby Adopts the
Following Policy Statement
This policy provides a general
philosophy and direction for the
examination and oversight of the Farm
Credit System (System).
The FCA Board provides for the
examination and supervision of each
System institution in accordance with
the Farm Credit Act of 1971, as
amended (the ‘‘Act’’). The Board fulfills
this responsibility primarily through the
Office of Examination (OE). The FCA
fulfills its supervision and examination
responsibilities for Farmer Mac, a
separate government-sponsored
enterprise, through its Office of
Secondary Market Oversight. OE
develops oversight plans, conducts
examinations, monitors the System’s
condition, current and emerging risks,
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and develops supervisory strategies to
ensure that the System operates in a safe
and sound manner and fulfills its public
policy purpose. The Act also provides
that the Farm Credit System Insurance
Corporation (FCSIC) Board of Directors
should utilize FCA examiners to
conduct examinations of System
institutions, to the extent practicable.
Oversight and Examination
The FCA Board directs the
maintenance of a ‘‘risk-based’’ approach
to oversight and examination for System
institutions, which maximizes OE’s
effectiveness and strategically addresses
the System’s safety and soundness and
compliance with laws and regulations.
The amount of examination resources
devoted to a System institution and the
scope of an examination will depend on
an institution’s ability to identify and
manage its risks. Accordingly, oversight
and examination efforts will be
heightened and accompanied by
appropriate preventive, corrective, or
enforcement actions when institutions
are unable or unwilling to address
material unsafe and unsound practices
or comply with law and regulations.
This risk-based approach is critical to
maintaining shareholder, investor, and
public confidence in the financial
strength and future viability of the
System.
Examination Staff and Communications
The risk-based approach must
promote effective communications with
System institutions. Examiners are an
essential communication link with
System institutions through ongoing
institution oversight, on-site
examinations, meetings with boards and
management, and written reports and
correspondence. The examination
program shall therefore maintain
adequately trained examiners who
understand the unique risks and
opportunities of agriculture, maintain
an appropriate level of regulatory and
financial industry experience and skills,
and communicate and work effectively
with System institutions to ensure they
remain safe and sound and able to fulfill
their public policy purpose.
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Reporting to the FCA Board
Annually, the Chief Examiner will
provide the Board an annual oversight
and examination plan (plan) for
approval. This plan will:
• Assess the condition of and risks
affecting the System at large and in
specific institutions;
• Establish priorities and identify
staffing, training, and budgetary needs;
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• Include an examination schedule
that ensures statutory requirements are
met; and,
• Include operational objectives and
strategies for meeting the plan.
The Chief Examiner will report semiannually to the Board on the status of,
and proposed adjustments to, the plan.
The Chief Examiner will also report
quarterly on the current condition of the
Farm Credit System, emerging risks, and
any necessary follow-up strategies.
Dated This 8th Day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Regulatory Philosophy
FCA–PS–59
Effective Date: 08–JUL–11.
Effect on Previous Action: Originally
adopted BM–17–FEB–94–02 (see 59 FR
32189, June 22, 1994); see also 60 FR
26034, May 16, 1995; amended by NV–
11–15 (8–JUL–11).
Sources of Authority: Farm Credit Act of
1971, as amended; 12 U.S.C. 2001 et seq.
The Farm Credit Administration (FCA)
Board Hereby Adopts the Following
Policy Statement
The FCA shall develop regulations
consistent with its authorities under the
Farm Credit Act of 1971 (Act), as
amended, and other relevant statutes. It
is the FCA Board’s philosophy to (1)
promulgate regulations that are
necessary to implement the law; (2)
support achievement of the Farm Credit
System’s (System) public mission; and
(3) ensure the System’s safety and
soundness.
The FCA Board will strive to create an
environment that promotes the
confidence of customers and
shareholders, investors, Congress, and
the public in the System’s financial
strength and future viability. The FCA
Board believes that safe and sound
operations of System institutions will
instill: (a) Investor confidence in System
debt securities, which helps ensure that
adequate funds are available at
reasonable rates; and, (b) shareholder/
member confidence in each
cooperatively owned System institution
by ensuring that sufficient financial
resources are maintained to support an
adequate supply of credit and other
services to its shareholders/members in
both good and bad times.
FCA will give high priority to issues
that enable the System to more
effectively accomplish its mission and
to those issues that pose significant risks
to the successful operation of the
System, with the intent of ensuring an
adequate and flexible flow of money
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54641
into rural areas. As such, the FCA Board
intends to provide System institutions
with the flexibility consistent with
changes in law, agriculture, and rural
America so institutions can offer high
quality, reasonably priced credit and
related services to farmers, ranchers,
their cooperatives, rural residents, and
other entities upon which farming
operations are dependent.
The strategies for accomplishing the
Board’s regulatory philosophy are as
follows:
1. We will develop regulations based
on a reasoned determination that
benefits of any proposed regulation
justify its cost.
2. We will focus our regulatory efforts
on issues that address identified risks in
System institutions or enhance the
ability of System institutions to better
meet the needs of agriculture and rural
America. Preambles to regulations will
explain the rationale for the regulatory
approach adopted.
3. We will utilize diverse approaches
to encourage public participation in the
development and review of regulatory
proposals in appropriate circumstances.
4. We will emphasize the cooperative
principles of a farmer-owned
Government-sponsored enterprise by
advancing regulatory proposals that
encourage farmer- and rancherborrowers to participate in the
management, control, and ownership of
their institutions.
5. We will work to eliminate
unnecessary regulations that impair the
ability of the System to accomplish its
mission to serve agriculture and rural
America and any regulations that are
unduly burdensome, costly, or not
based on the law.
The details of how the FCA will
implement these strategies will be
described in the Agency’s Five-Year
Strategic and Annual Performance Plans
and in its Unified Agenda.
Semi-annually, the Director of the
Office of Regulatory Policy (ORP) will
provide the Board a proposed Unified
Agenda for approval. The Unified
Agenda will describe the regulatory
projects the Agency plans to work on
during the next 12 month period and
apply the principles and strategies
reflected in this policy. Quarterly, the
ORP Director will report to the Board on
the status of, and proposed adjustments
to, regulatory projects scheduled on the
Unified Agenda.
Dated this 8th Day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
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Equal Employment Opportunity
Programs and Diversity
FCA–PS–62
Effective Date: 08–JUL–11.
Effect on Previous Action: Updates
FCA–PS–62 [BM–13–JUL–06–03] (71 FR
46481, 8/14/2006) 7–13–06; amended by
NV–11–15 (08–JUL–11).
Sources of Authority: Title VII of the Civil
Rights Act of 1964, as amended (42 U.S.C.
2000e et seq.); Age Discrimination in
Employment Act (29 U.S.C. 621 et seq.);
Rehabilitation Act of 1973, as amended (29
U.S.C. 721 et seq.); Equal Pay Act of 1974 (29
U.S.C. 206(d)); Civil Service Reform Act of
1978 (5 U.S.C. 3112); Notification and
Federal Employee Antidiscrimination and
Retaliation Act of 2002 (NO FEAR Act) (5
U.S.C. 2301); Genetic Information
Nondiscrimination Act of 2008 (42 U.S.C.
2000ff et seq.);); section 5.9 of the Farm
Credit Act of 1971, as amended (12 U.S.C.
2243); Executive Order 11478 (Equal
Employment Opportunity in the Federal
Government), as amended by Executive
Orders 13087 and 13152 to include
prohibitions on discrimination based on
sexual orientation and status as a parent;
Executive Order 13166 (Improving Access to
Services for Persons with Limited English
Proficiency); 29 CFR part 1614; Equal
Employment Opportunity Commission
Management Directives.
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Purpose
The Farm Credit Administration (FCA
or Agency) Board reaffirms its
commitment to Equal Employment
Opportunity (EEO) and Diversity
(EEOD) and its belief that all FCA
employees should be treated with
dignity and respect. The Board also
provides guidance to Agency
management and staff for deciding and
taking action in these critical areas.
Importance
Unquestionably, the employees who
comprise the FCA are its most important
resource. The Board fully recognizes
that the Agency draws its strength from
the dedication, experience, and
diversity of its employees. The Board is
firmly committed to taking whatever
steps are needed to protect the rights of
its staff and to carrying out programs
that foster the development of each
employee’s potential. We believe an
investment in efforts that strongly
promote EEOD will prevent the conflict
and the high costs of correction for
taking no, or inadequate, action in these
areas.
The Farm Credit Administration (FCA)
Board Adopts the Following Policy
Statement
It is the policy of the FCA to prohibit
discrimination in Agency policies,
program practices, and operations.
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Employees, applicants for employment,
and members of the public who seek to
take part in FCA programs, activities,
and services will be treated fairly. FCA,
under the appropriate laws and
regulations, will:
• Ensure equal employment
opportunity based on merit and
qualification, without discrimination
because of race, color, religion, sex, age,
national origin, disability, sexual
orientation, status as a parent, genetic
information, or participation in
discrimination or harassment complaint
proceedings;
• Provide for the prompt and fair
consideration of complaints of
discrimination;
• Make reasonable accommodations
for qualified applicants for employment
and employees with physical or mental
disabilities under law;
• Provide an environment free from
harassment to all employees;
• Create and maintain an
organizational culture that recognizes,
values, and supports employee and
public diversity and inclusion;
• Develop objectives within the
Agency’s operation and strategic
planning process to meet the goals of
EEOD and this policy;
• Implement affirmative programs to
carry out this policy within the Agency;
and
• To the extent practicable, seek to
encourage the Farm Credit System to
continue its efforts to promote and
increase diversity.
exists, we will strive to remove this
barrier.
Diversity and Inclusion
A disabled veteran is defined as
someone who is entitled to
compensation under the laws
administered by the Veterans
Administration or someone who was
discharged or released from active duty
because of a service-connected
disability.
The FCA is committed to increasing
the representation of disabled veterans
within its organization. Our Nation
owes a debt to those veterans who
served their country, especially those
who were disabled because of service.
To honor these disabled veterans, the
FCA shall place emphasis on making
vacancies known to and providing
opportunities for employing disabled
veterans.
The FCA intends to be a model
employer. That is, as far as possible,
FCA will build and maintain a
workforce that reflects the rich diversity
of individual differences evident
throughout this Nation. The Board
views individual differences as
complementary and believes these
differences enrich our organization.
When individual differences are
respected, recognized, and valued,
diversity becomes a powerful force that
can contribute to achieving superior
results. Therefore, we will create,
maintain, and continuously improve on
an organizational culture that fully
recognizes, values, and supports
employee diversity. The Board is
committed to promoting and supporting
an inclusive environment that provides
to all employees, individually and
collectively, the chance to work to their
full potential in the pursuit of the
Agency’s mission. We will provide
everyone the opportunity to develop to
his or her fullest potential. When a
barrier to someone achieving this goal
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Affirmative Employment
The Board reaffirms its commitment
to ensuring FCA conducts all of its
employment practices in a
nondiscriminatory manner. The Board
expects full cooperation and support
from everyone associated with
recruitment, selection, development,
and promotion to ensure such actions
are free of discrimination. All
employees will be evaluated on their
EEOD achievements as part of their
overall job performance. Though staff
commitment is important, the role of
supervisors is paramount to success.
Agency supervisors must be coaches
and are responsible for helping all
employees develop their talents and
give their best efforts in contributing to
the mission of the FCA.
Workplace Harassment
It is the policy of the FCA to provide
a work environment free from unlawful
discrimination in any form, and to
protect all employees from any form of
harassment, either physical or verbal.
The FCA will not tolerate harassment in
the workplace for any reason. The FCA
also will not tolerate retaliation against
any employee for reporting harassment
or for aiding in any inquiry about
reporting harassment.
Disabled Veterans Affirmative Action
Program (DVAAP)
Responsibilities
The Chairman and Chief Executive
Officer (CEO) is ultimately responsible
for developing and carrying out all
EEOD requirements and initiatives in
accordance with laws and regulations to
fulfill diversity initiatives in approved
program plans.
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To help in fulfilling these
responsibilities the CEO, or designee,
will fill the following positions:
• EEO Director and, as appropriate,
EEO Coordinator(s);
• Special Emphasis Program
Managers required by law or regulation;
• EEO Counselors; and
• EEO Investigators.
Persons in these positions will
perform their duties as specified by the
CEO or designee and as required by law
or regulation. The Head of each Agency
office will make such persons available
upon request from the EEO Director.
The CEO or EEO Director may also
establish standing committees to deal
with specific issues as they arise.
Dated this 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Rules for the Transaction of Business of
the Farm Credit Administration Board
FCA–PS–64
Effective Date: 08–JUL–11.
Effect on Previous Action: Originally
adopted by NV–94–05 (07–FEB–
94)[FCA–PS–58]; corrected by memo
09–FEB–94; amended by NV–95–03
(13–JAN–95)[FCA–PS–64]; amended by
NV–95–18 (20–MAR–95); amended by
NV–95–46 (9–AUG–95); amended by
BM–24–OCT–95–02; amended by NV–
95–69 (02–JAN–96). See also 58 FR
6633, Feb. 1, 1993 and 59 FR 17537,
Apr. 13, 1994; reaffirmed by NV–96–22
(30–MAY–96); amended by NV–96–36
(26–AUG–96); amended by NV–98–16
(8–MAY–98); amended by NV–99–09
(16–MAR–99); amended by NV–99–25
(24–SEP–99); amended by NV–11–15
(8–JUL–11).
Source of Authority: Sections 5.8, 5.9,
5.10, 5.11 and 5.17 of the Farm Credit Act of
1971, as amended.
The Farm Credit Administration (FCA)
Board Hereby Adopts the Following
Policy Statement
Rules for the Transaction of Business of
the Farm Credit Administration Board
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Purpose, Scope, and Definitions
Section 1. Purpose and Scope. These
Rules adopted under § 5.8(c) of the Farm
Credit Act of 1971, as amended (Act),
concerning the transaction of business
of the Farm Credit Administration
(FCA) Board (Board) supplement the
statutes and regulations that govern the
procedures and practice of the Board
(including, without limitation, the Act,
the Sunshine Act, and FCA regulations,
12 CFR 600 et seq.). Unless otherwise
provided in these Rules, or relevant
statutes or regulations, this Board will
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transact its business in accordance with
Robert’s Rules of Order (Newly Revised)
(most recent edition).
Section 2. Definitions, Reporting
Relationships, and Performance
Appraisals.
• ‘‘Act’’ means the Farm Credit Act of
1971, as amended.
• ‘‘Board Member’’ means each of the
three individuals appointed by the
President, by and with the advice and
consent of the Senate, to serve as
Members of the Board, including the
Chairman, unless the context requires
otherwise. Each Board Member
appraises the performance of his or her
staff.
• ‘‘Board Member Staff’’ means those
employees reporting directly to a Board
member such as executive or special
assistants, and who are organizationally
located within the Office of the Board.
• ‘‘Chairman’’ means the Board
Member designated by the President to
serve as Chairman of the Board. The
Chairman also serves as the Agency’s
Head and Chief Executive Officer (CEO).
After consultation with the other Board
Members, the Chairman appraises the
performance of the Secretary, Equal
Employment Opportunity Director,
Designated Agency Ethics Official, Chief
Operating Officer, and all Office
Directors reporting directly to him or
her.
• ‘‘Designated Agency Ethics
Official’’ (DAEO) means an employee of
the FCA designated by the Head of the
Agency to administer the provisions of
Title I of the Ethics in Government Act
of 1978, to coordinate and manage the
Agency’s ethics program, and to provide
liaison with the Office of Government
Ethics on all aspects of FCA’s ethics
program. The DAEO reports directly to
the Chairman on the Agency’s ethics
program.
• ‘‘Equal Employment Opportunity
(EEO) Director’’ means an employee of
the FCA designated by the Head of the
Agency to administer the provisions of
the Agency’s EEO program as set forth
in 29 CFR part 1614.
• ‘‘General Counsel’’ (GC) means an
employee of the FCA who serves as the
chief legal officer of the Board. The GC
reports to the Chairman concerning
administrative matters and to the FCA
Board on matters of Agency policy. By
the nature of the position the GC, as
appropriate and necessary, maintains
special advisory relationships in
confidence with the individual Board
Members. The GC must also keep the
FCA Board fully informed of all
litigation in which the Agency is
involved.
• ‘‘Inspector General’’ (IG) means an
appointed head of the Office of
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Inspector General (OIG), an independent
component of the FCA, established by
and responsible for adhering to the IG
Act of 1978, as amended. The purpose
of the IG is to promote economy,
efficiency and effectiveness, and to
prevent and detect fraud and abuse in
the programs and operations of FCA.
• ‘‘Office Director’’ means an
employee of the FCA serving as head of
an FCA Office, excluding the Inspector
General unless specified.
• ‘‘Secretary’’ means an employee of
the FCA who serves as Secretary to the
Board as appointed by the Chairman.
The Secretary, or another FCA employee
designated by the Chairman, serves as
the parliamentarian for the Board. The
Secretary keeps permanent and
complete records and minutes of the
acts and proceedings of the Board.
• ‘‘Sunshine Act’’ means the
Government in the Sunshine Act, 5
U.S.C. 552b.
Amendments
Section 1. The business of the Board
will be transacted in accordance with
these Rules, which may be amended
from time to time: Provided, however,
that upon agreement of at least two
Board Members convened in a duly
called meeting, the Rules may be
waived in any particular instance,
except that action may be taken on
items at a Special Meeting only in
accordance with part I, Article I, § 3(b)
of this policy.
Section 2. These Rules may be
changed or amended by the concurring
vote of at least two Board Members
upon notice of the proposed change or
amendments having been given at least
thirty days before such vote.
Section 3. These Rules will be
reviewed by the Board at least every five
years or as needed.
Section 4. The Secretary to the Board
is hereby delegated authority to make
technical, syntactical, and grammatical
changes to any Board Policy, provided
a redlined complete copy of the
policy(ies) is given to each Board
member that clearly details each change
made at least 30 days prior to the
effective date of the change. Any Board
member may, within the 30 day period,
stop the proposed changes(s) and, if a
Board member so desires, put forth the
matter for Board consideration.
Part I—Rules for the FCA Board
Meetings
Article I. Board Meetings.
Article II. Board Action.
Article III. Board and Chairman Delegations.
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Article I
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Board meeting agenda approved by the
Chairman may need to be amended
prior to a Board meeting to include
items that require Board action. In such
instances the Secretary will update the
Board meeting books with the newly
approved item(s) and make the required
Sunshine Act disclosures and notices as
soon as possible. However, unless
agreed to by all Board Members, no vote
may be taken on an issue unless the
necessary material has been provided to
the Board Members not less than
twenty-four hours before the meeting to
consider such issue.
Section 5. Supporting Documentation.
The Secretary will maintain one copy of
all Board Meeting Book material. All
copies of the Board Meeting Book
material for Closed Sessions provided to
anyone other than the Secretary will be
returned to the Secretary for disposal or
maintained in a secure location
approved by the Secretary. One copy of
each Executive Summary provided to a
Board Member will be provided to and
maintained by the Secretary. Board
Meeting Books and Executive
Summaries are not part of the minutes
of the Board unless expressly
incorporated therein.
Section 6. Telephone Conference. Any
Board Member, including the Chairman,
may participate in a meeting of the
Board through the use of conference call
telephone or similar equipment,
provided that all persons participating
in the meeting can simultaneously
speak to and hear each other. Any Board
Member so participating will be deemed
present at the meeting for all purposes.
Section 7. Public Attendance.
(a) Attendance. Members of the public
may attend all meetings of the Board
except those meetings or portions of
meetings that are closed as directed by
the Board, consistent with the Sunshine
Act.
(b) Public Appearances before the
Board. While members of the public are
invited and encouraged to attend Board
meetings, no member of the public has
a right to speak in a Board meeting.
However, the Board may, in its sole
discretion, permit a member of the
public to address the Board if he or she
provides a written request and
statement covering the intended subject
matter at least fifteen days before the
meeting.
Section 8. Minutes.
(a) Format. The format of minutes of
the Board meetings, unless otherwise
stated in these rules or relevant statutes
or regulations, will comply with the
most recent edition of Robert’s Rules of
Order and the Sunshine Act. The
minutes will clearly identify the date,
time, and place of the meeting, the type
Board Meetings
Section 1. Sunshine Act. All FCA
Board meetings will be announced and
conducted in conformance with the
Government in the Sunshine Act.
Section 2. Presiding Officer. The
Chairman will preside at each meeting.
In the event the Chairman is
unavailable, the other Board Member
from the Chairman’s political party will
preside. If there is no other Board
Member from the Chairman’s political
party, the Board Member serving the
longest on the Board will preside.
Section 3. Calls and Agenda.
(a) Regular Meeting. The Secretary, at
the direction of the Chairman, issues a
call for items for the agenda to the other
Board Members and the Office Directors
of FCA. The Secretary provides to the
Chairman a list of all the items
submitted, including a list of
outstanding notational votes and
matters voted ‘‘not appropriate for
notational vote.’’ The Chairman then
establishes the agenda to be posted on
the Agency’s public notice board or on
its public Web site at least 1 week before
the meeting. The agenda will also be
published in the Federal Register at
least 3 calendar days before the meeting
date. At each meeting, the Board votes
to approve or amend the agenda
established by the Chairman. The Board
may amend the agenda to add items that
the Board Members believe need to be
considered at that meeting.
(b) Special Meeting. Special meetings
of the Board may be called:
(1) By the Chairman; or
(2) By the other two Board Members;
or
(3) If there is at the time a vacancy on
the Board, by a single Board Member.
Any call for a Special Meeting will
specify the business to be transacted
and state the place and time of such
meeting. No business will be brought
before a Special Meeting that has not
been specified in the notice of call of
such meeting without the unanimous
consent of all Board Members.
(c) Notice. The Secretary will give
appropriate notice of any and all
meetings and make the call for Special
meetings. Reasonable efforts to provide
such notice to Board Members will be
made for all meetings of the Board, but
failure of notice will in no case
invalidate a meeting or any action taken
during that meeting.
Section 4. Board Materials. The
Secretary will distribute complete Board
Meeting Books to each Board Member
and their staff at least three full business
days before any Regular Meeting. There
may be instances when the proposed
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of meeting held, whether the meeting
was open or closed, the identity of
Board Members present and, where
applicable, that they participated by
telephone, and the identity of the
Secretary and the GC in attendance, or,
in their absence, the names of the
persons who substituted for them. The
minutes will contain a separate
paragraph for each subject matter and
will note all main motions or motions
to bring a main motion before the Board,
except any that were withdrawn. The
minutes will not contain any reference
to statements made unless a request is
specifically made that a statement be
made a part of the minutes, or if
required by the Sunshine Act. The
minutes of meetings will indicate the
substance and disposition of any
notational votes completed since the
last meeting. Except in the case of a
voice vote, the Secretary will record the
vote of each Board Member on a
question or will note a unanimous
consent. The Chairman and the
Secretary will sign the minutes of the
Board meeting, indicating the date of
approval by the Board.
(b) Circulation. The Chairman and GC
will review draft minutes. The Secretary
will circulate draft minutes to all Board
Members at least one week before their
consideration at a Board Meeting. The
Secretary will place in all Board
Meeting Books copies of the minutes of
the meetings of the Board to be voted on
at a Board Meeting.
Article II
Board Action
Section 1. Affirmative Vote Required.
Action on any matter requires the
affirmative vote of at least two Board
Members, except as provided in Article
III, § 1 of this part.
Section 2. Records of Board Action.
(a) Meetings. The vote of each Board
Member, including the Chairman, on a
question voted on at a meeting will be
recorded in the minutes. The Chairman
may, if there is no objection, call for a
voice vote on adjournment or other
actions. If a voice vote is taken, its result
will be recorded in the minutes.
(b) Notational Votes. The Secretary
will provide a summary of any action
taken by notational vote to the Board
Members and Chairman and the action
taken will be reflected in the minutes of
the next meeting of the Board.
Section 3. Notational Voting.
(a) Nothing in these Rules precludes
the transaction of business by the
circulation of written items (notational
votes) to the Board Members.
(b) The Board may use notational
voting procedures to decide any matter
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that may come before it. Any Board
Member may submit a motion to the
Secretary for distribution as a notational
vote. However, in view of the public
policy of openness reflected in the
Sunshine Act and the desire to allow
any Board Member to present
viewpoints to the other Board Members,
any Board Member can veto the use of
the notational voting procedure for the
consideration of any particular matter
by voting ‘‘not appropriate for
notational vote.’’
(c) Upon submission of an item for
notational vote, the Secretary will
provide each Board Member a complete
package of all relevant information and
a notational vote ballot specifying the
Board Member making the motion, the
motion itself, and the deadline for
return of the ballot. Within ten business
days of receipt, or earlier if the motion
requires, each Board Member will act on
the matter by returning the ballot to the
Secretary. Each Board Member is to
indicate his/her position in writing on
the ballot in the following manner: (1)
Approve, (2) disapprove, (3) abstain, or
(4) not appropriate for notational vote.
(d) No partial concurrences or
amendments are permitted; however, a
Board Member may suggest a revision to
the proponent of the motion, subject to
compliance with the Sunshine Act, and
the proponent may withdraw his or her
motion at any time before receipt by the
Secretary of all the ballots of all Board
Members or the end of the time period
provided for on the ballot.
(e) A Board Member who is absent
from the office may authorize a staff
member to initial the ballot for him/her,
provided that the Board Member has a
designation memorandum on file with
the Secretary.
Section 4. Board Records. The
Secretary will maintain the records of
the Board including, without limitation,
the minutes of the Board meetings and
notational votes.
Article III
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Board and Chairman Delegations
Section 1. Two Vacancies/Authority
to Act. In the event two Board Members
are not available by reason of recusal,
resignation, temporary or permanent
incapacitation, or death, to perform the
duties of their offices, the Board hereby
delegates to the remaining Board
Member the authority to exercise, in
his/her discretion, the authorities of the
FCA granted to the Agency or the Board
by statute, regulation or otherwise,
except those authorities which are nondelegable. This delegation of authority
does not include authority to establish
general policy and promulgate rules and
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regulations, or any delegation expressly
prohibited by statute. This delegation
will include but is not limited to the
exercise of the following powers:
(a) The approval of actions of the
Farm Credit System (System)
institutions that are required by statute,
regulations or otherwise to be approved
by the FCA or its Board;
(b) The exercise of all powers of
enforcement granted to the FCA by
statute, including but not limited to, the
authorities contained in 12 U.S.C. 2154,
2154a, 2183, 2202a, and 2261–2274; and
(c) Any actions or approvals required
in connection with the conduct of a
receivership or conservatorship of a
System institution.
Authorities delegated by this Section
may be re-delegated, in writing, at the
discretion of the remaining Board
Member, to other FCA officers or
employees.
Section 2. National Security
Emergencies. Pursuant to Executive
Order 12656, as amended, in the event
of a national security emergency, if the
Chairman is unable to perform his or
her duties for any reason, the Chairman,
at his or her sole discretion, delegates to
the following individuals, in the order
mentioned and subject to being
available, the authority to exercise and
perform all the functions, powers,
authority and duties of the Chairman in
an acting capacity until such time as
either the Chairman can resume his/her
position or, if no longer able to serve as
Chairman, the President of the United
States designates a new Chairman:
(a) Member of the Board of the
Chairman’s political party;
(b) If there is no other Board Member
from the Chairman’s political party, the
Board Member serving the longest on
the Board;
(c) General Counsel.
The Chairman or Acting Chairman
will ensure that FCA has an alternative
location for its headquarters functions
in the event a national security
emergency renders FCA’s headquarters
inoperative. The Chairman or Acting
Chairman may establish such branch
office or offices of the FCA as are
necessary to coordinate its operations
with those of other government
agencies.
Section 3. Individual Assignments. To
the extent consistent with law, the
Board or the Chairman may offer
another Member of the Board a special
assignment and define the duties
incident thereto, and the Chairman may
delegate to another Board Member
certain duties and responsibilities of the
Chairman.
Section 4. Other Delegations. The
FCA Board may delegate such
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authorities as it deems necessary and
appropriate. Such delegations are
included in Attachments A and B to this
policy.
Part II—Board and Staff Governance
Article I. Board Governance.
Article II. Staff Governance.
Article I
Board Governance
Section 1. General. The purpose of
this part is to ensure the efficient
operation of the FCA in light of the
various authorities and operational
responsibilities of Board and the FCA
Chairman and CEO.
The Board recognizes that for the
Agency to run efficiently, the Chairman/
CEO must have sufficient latitude and
discretion to direct the implementation
of Board policies and run the Agency’s
day-to-day affairs. Notwithstanding
such latitude, the other Board Members
must have access to staff and must be
able to request information from staff
that they find necessary to fulfill their
policy- and rulemaking responsibilities
under the Act.
The Chairman/CEO is always free to
bring to the Board issues that do not
require Board action. Conversely, the
Board may involve itself in operational
matters ordinarily reserved for the
Chairman/CEO if it concludes that they
rise to the level of policy due to their
sensitivity, seriousness, or controversial
nature.
Section 2. Board Authorities. The
Board, acting as a unit, must manage,
administer, and establish policies for
the FCA. The Board specifically
approves the rules and regulations
implementing the Act; provides for the
examination, enforcement, and
regulation of System institutions;
provides for the performance of all the
powers, functions, and duties vested in
the FCA; and requires any reports
deemed necessary from System
institutions. The Board also adopts the
FCA seal. Each Board Member has the
authority to appoint and direct regular,
full-time staff in his or her immediate
office.
Section 3. Chairman Authorities. The
Chairman, in carrying out his or her
responsibilities, is governed by the
general policies adopted by the Board
and by such regulatory decisions,
findings, and policy determinations as
the Board may by law be authorized to
make.
The Chairman, in carrying out
policies as directed by the Board, acts as
spokesperson for the Board and
represents the Board and the FCA in
official relations within the Federal
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Government. Under policies adopted by
the Board, the Chairman must consult
on a regular basis with the Secretary of
the Treasury concerning the exercise of
the System’s powers under § 4.2 of the
Act; the Board of Governors of the
Federal Reserve System concerning the
effect of System lending activities on
national monetary policy; and the
Secretary of Agriculture concerning the
effect of System policies on farmer,
ranchers, and the agricultural economy.
As to third persons, all acts of the
Chairman will be conclusively
presumed to be in compliance with
general policies and regulatory
decisions, findings, and determinations
of the Board.
The Chairman enforces the rules,
regulations, and orders of the Board.
The Chairman designates attorneys to
represent the Agency in any civil
proceeding or civil action brought in
connection with the administration of
conservatorships and receiverships and
in civil proceedings or civil actions
when so authorized by the Attorney
General under provisions of title 28 of
the United States Code. The Chairman,
subject to the approval of the Board,
may establish one or more advisory
committees in accordance with the
Federal Advisory Committee Act.
The Chairman may not delegate any
of the foregoing powers without prior
Board approval.
The Chairman also exercises those
powers conferred on the Head of the
Agency, including the power to make
certain designations.
Section 4. CEO Authorities. The
Chairman of the FCA Board is also the
Agency’s CEO. The CEO, in carrying out
his or her responsibilities, directs the
implementation of policies and
regulations adopted by the Board and,
after consultation with the Board,
executes the administrative functions
and duties of the FCA.
‘‘Consultation with the Board’’ is
achieved when the Chairman/CEO
makes a good faith attempt to seek
advice, guidance, and input from the
Board before taking significant action on
matters related to the execution of
administrative functions or duties.
The Chairman as CEO runs the dayto-day operations of the Agency. This
includes the power to implement the
policies and regulations adopted by the
Board, appoint personnel as necessary
to carry out Agency functions, set staff
pay and benefits and direct staff. As
provided in § 5.11(b) of the Act, the
Chairman/CEO appoints heads of major
administrative divisions subject to the
approval of the Board. In accordance
with the IG Act, the IG is appointed by
the FCA Board.
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The Chairman as CEO may designate
to other FCA officers and employees the
authority to exercise and perform those
powers necessary for the day-to-day
management of the Agency.
Article II
Staff Governance
Section 1. Authority over Staff. The
Chairman/CEO has authority to hire the
personnel necessary to carry out the
mission of the Agency and to direct
staff, except that each Board Member is
entitled to appoint and direct his or her
regular, full-time staff within the
constraints of the adopted budget for the
Office of the Board.
Subject to the approval of the Board,
the Chairman/CEO appoints and
removes the ‘‘heads of major
administrative divisions.’’ The Board
defines the ‘‘heads of major
administrative divisions’’ as all Office
Directors who are career appointees.
The Board must approve the conversion
of an existing career position to a noncareer (political) position. In accordance
with the IG Act, a removal of the IG may
only be made upon the written
concurrence of a 2⁄3 majority of the FCA
Board.
Section 2. Organization Chart.
Consistent with its mandate to approve
regulations and appointments outlined
above, the Board approves the FCA
organizational chart down through the
Office level along with relevant
functional statements for each Office.
Authority to make organizational
changes within any division rests with
the Chairman/CEO, and may be
delegated to the Chief Operating Officer
or Office Directors. In accordance with
the IG Act, the IG has personnel
authority for the Office of the Inspector
General.
Part III—Board Operations
Article I. Committee and Financial
Operations, and Other Activities.
Article II. Board Member Travel and Related
Expenses.
Article I
Committee and Financial Operations,
and Other Activities
Section 1. Committee Operations. To
assist the Board in exercising its
authority for oversight and approval of
the Strategic Plan, the formulation of
regulations and policy, and the
monitoring and assessment of risk, the
Board directs the formation of three
committees.
Each Committee Chair will be
designated by the Chairman. Each
committee will be comprised of the
Board Members’ Executive Assistants
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and such Agency staff as determined by
the Committee Chair. The Committee
Chair will designate a Coordinator with
expertise in, or significant
accountability for, the activities of the
committee. Committees will meet as
often as determined by the Committee
Chair to achieve committee objectives.
The Chairman may also approve the use
of external consultants to assist the
committees on an as-needed basis.
(a) Strategic Planning Committee. The
objective of this committee is to provide
a forum for Board input on (1) the
development of, and periodic updates
to, the Strategic Plan, and (2) changes in
processes and procedures that will
improve the quality of this key Agency
document.
(b) Regulation and Policy
Development Committee. The objective
of this committee is to provide a forum
to (1) obtain Board input throughout the
entire process of developing, modifying,
or eliminating individual regulations,
(2) discuss changes in processes and
procedures that will improve the
Agency’s regulation and policy
development process, and (3) foster
open discussion during the
development and periodic update of the
Agency’s regulatory agenda.
(c) Risk Committee. The objective of
this committee is to provide a forum to
(1) facilitate Board awareness of risks to
the ongoing mission fulfillment and
safety and soundness of the System and
Farmer Mac, (2) ensure an integrated
and coordinated Agency risk analysis
process that effectively uses information
from a wide variety of internal and
external sources, and (3) foster open
discussion about risks to the System and
Farmer Mac and the implications of
such risks for future Agency operations.
Section 2. Financial Operations.
(a) Budget Approval. The Chairman,
consistent with the provisions of the
Act, other law and regulations, and
applicable policy, oversees the
development of budget proposals and
causes the expenditure of funds within
approved budgets to meet the Agency’s
mission and objectives. The Board
approves an object class budget for the
Agency as a whole and a budget for each
office. Any reallocation of funds in
excess of $100,000 requires FCA Board
approval. Reallocation of funds of
$100,000 or less requires the Chairman’s
approval (or that of the Chairman’s
designee). The Chief Financial Officer
(CFO) will provide a monthly report to
the Board on all budgetary reallocations
that occur after the FCA Board approves
a fiscal year budget. The CFO will also
provide a quarterly budget report to the
Board that discusses actual performance
of the budgeted items. The quarterly
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report may be presented during regular
Board meetings or during a Board
briefing.
The IG, in accordance with the IG Act,
transmits a budget estimate specifying
an aggregate amount for OIG operations,
OIG training needs, and amounts for
support of the Council of the Inspectors
General on Integrity and Efficiency.
Section 3. Other Board Operations.
(a) Audit Resolution Process. The
Chairman is responsible for overseeing
the audit resolution process and,
through a designee, for audit resolution
implementation and follow-up.
However, the Chairman must obtain
Board approval of audit resolutions
where the issue would normally require
Board action. The Inspector General and
Audit Follow-up Official will report to
the Board the status of any unresolved
audit recommendations,
unimplemented management decisions,
and other issues on a semiannual basis
following the Inspector General’s SemiAnnual Report to Congress.
(b) Litigation. The Chairman has
authority to undertake litigation to
defend the Agency, consistent with
established Board policy. The Board
will approve litigation where the
Agency is plaintiff, will approve
recommendations to the Justice
Department to pursue an appeal, and
will approve positions advanced in
litigation that conflict with existing
Board policy or establish a significant
new policy. The Chairman’s authority to
settle certain claims against the Agency
have been delegated to the GC provided
the GC consults with the Chairman.
(c) Documents and Communications.
(1) Approval, Review, and
Consultation. The FCA Board is
responsible for determining the
Agency’s position on policy. Board
Policy Statements should be reviewed at
least every five years.
The Board must approve all
documents published in the Federal
Register, including proposed and final
FCA regulations, except for notices of
effective dates or technical corrections
of regulations. Board approval is not
necessary prior to Federal Register
publication of Privacy Act systems
notices or notices of other routine or
administrative matters unless they raise
policy issues requiring Board approval.
Bookletters, informational memoranda,
and other mass mailings to Farm Credit
institutions (except documents listed in
Attachment A) must be approved by the
Board prior to distribution. Documents
may be added to or deleted from
Attachment A by Board approval.
The issuance of a ‘‘no action’’ letter is
a policy matter requiring Board
approval. For the purposes of this
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statement, a ‘‘no action’’ letter is a
statement to a Farm Credit institution
that, notwithstanding any other
provision of law or regulation, the Board
will take no action against a System
institution solely because it engaged in
conduct specified in the letter.
Authority to promulgate internal
administrative issuances, including FCA
Policies and Procedures Manual (PPM)
issuances, rests with the Chairman and
may be delegated to the Chief Operating
Officer. The Chairman will provide the
Board with final drafts of PPM issuances
and other administrative issuances for
an appropriate consultative period if
those issuances relate to examination
and supervision, audits, internal
controls, the budget, the strategic
planning process, regulation
development, or personnel matters
relating strictly to promotion or pay.
(2) Signature Authority. Authority to
sign official Board documents,
including, but not limited to, proposed
and final regulations, Federal Register
notices, no-action letters, minutes, and
other Board actions is delegated to the
Secretary. After any action by the Board
required under paragraph (c)(1) of this
section, the Chairman has the authority
to sign bookletters, informational
memoranda, and other mass mailings to
Farm Credit institutions. This signature
authority may be delegated to senior
staff members.
(3) Correspondence. The Chairman
approves and signs routine
correspondence (that is, correspondence
in the ordinary course of business), to
members of Congress, correspondence
responding to White House referrals, or
other correspondence on behalf of the
Board or the Agency. The Chairman
may delegate approval and signature
authority for such correspondence to the
Chief Operating Officer or FCA Office
Director when the subject matter
involves congressional or White House
case work. When the subject matter
involves the presentation of an Agency
position or policy relative to
regulations, legislation, or any other
significant matter, the Chairman may
not delegate authority, and the
correspondence must be approved by
the Board, except that the Board need
not approve a previously approved
response or a restatement of previously
adopted Board policy. Board approval
does not apply when the Chairman is
speaking only for him- or herself and
includes the appropriate disclaimer.
Likewise, on similar matters, Board
Members should include appropriate
disclaimers. The Chairman or the
Chairman’s designee has authority to
sign acknowledgments or interim
responses without Board approval,
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provided such responses contain no
policy statements or only previously
approved statements.
(4) Authentication and Certification of
Records and Documents. The Chairman
designates the person authorized and
empowered to execute, issue and certify
under the seal of the FCA:
• Statements authenticating copies of,
or excerpts from official records and
files of the FCA;
• Effective periods of regulations,
orders, instructions, and regulatory
announcements on the basis of the
records of the FCA;
• Appointment, qualification, and
continuance in office of any officer or
employee of the FCA, or any
conservator or receiver acting in
accordance with the FCA receivership
regulations at 12 CFR part 627 on the
basis of the records of the FCA.
The Chairman may further empower
the designated official(s) to sign official
documents and to affix the seal of the
FCA thereon for the purpose of attesting
the signature of officials of the FCA.
Article II
Board Member Travel and Related
Expenses
Section 1. Pre-confirmation Travel.
Travel expenses incurred by an FCA
Board nominee that are solely for the
purpose of attending his or her Senate
confirmation hearings will be
considered the personal expense of the
nominee and will not be reimbursed by
FCA. However, consistent with existing
Government Accountability Office
interpretations, the FCA will pay for a
nominee’s travel expenses to the
Washington, DC metropolitan area
(including lodging and subsistence), if
payment is approved, in advance
whenever practicable, by the Chairman
based on a determination that the
nominee’s travel is related to official
business that will result in a substantial
benefit to the FCA. That determination
will be made on a case-by-case basis and
is within the sole discretion of the
Chairman. The same standards and
policies that apply to the reimbursement
of Board Members’ travel expenses will
apply to the reimbursement of
nominee’s expenses. As part of the
documentation for the approval process,
the Chairman must execute a written
finding that a nominee’s travel would
substantially benefit the FCA.
Travel that may result in substantial
benefit to the FCA could include
meetings, briefings, conferences, or
other similar encounters between the
nominee and FCA Board Members,
office directors, the Chief Operating
Officer, or other senior congressional
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and executive branch officials, for the
purpose of developing substantive
knowledge about the FCA, its role, its
interaction with other Government
entities, or the institutions that it
regulates. Meetings or briefings of this
nature may enable a nominee to more
quickly and effectively assume
leadership at the Agency after
confirmation by the Senate and could
thus substantially benefit the Agency.
Section 2. Board Member Relocation.
Notwithstanding the provisions of
§ 5.8(d) of the Act, Board Members will
be reimbursed by FCA for travel and
transportation expenses incurred in
connection with relocation to their first
official duty station in accordance with
the provisions of the Federal Travel
Regulations (FTR). Board Members will
be issued a specific prior written
authorization by the Chief Human
Capital Officer detailing the expenses
that may be reimbursed under the
current FTR.
Section 3. Representation and
Reception Fund. Section 5.15(a) of the
Act allows the payment of FCA funds
for official representation and reception
expenses. Expenses incurred from
official functions may be paid for with
funds from the Representation and
Reception (R&R) Fund only under this
policy statement and decisions from the
Department of Justice or guidance from
the Comptroller General of the United
States (Comptroller General).
‘‘Official functions’’ include meetings
and other contacts with the public to
explain or further the Agency’s mission
and typically are activities of the FCA
Board, individual Board Members, or
other FCA officials acting for the Board.
For example, while extending official
courtesies to the public on occasions
associated with the mission of the
Agency, FCA staff may use the R&R
Fund to cover catering services, rental of
facilities, receptions, coffee, snacks,
refreshments, supplies, services and
tips.
Consistent with opinions of the
Comptroller General, the FCA Board has
determined, as a matter of policy, that
it will not permit the R&R Fund to be
used for events or functions in which
attendance is restricted to Agency
employees.
Similarly, the R&R Fund may not be
used for activities relating solely to
‘‘personal entertainment’’ (interpreted
by the Comptroller General to include
attendance at a sporting event or
concert, for example) or for personal
favors, even if the entertainment is
enjoyed with, or is a favor given to,
members of the public, such as Farm
Credit System representatives.
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The FCA Board has determined, as a
matter of policy, that the R&R Fund
shall be a fund of last resort and shall
not be used for expenses that can
properly be classified as another type of
Agency expense.
The FCA Board will decide how
much to budget for the R&R Fund. The
FCA Board will approve any amount
available for R&R expenses for the
Chairman and each Board Member, and
an amount available for general R&R
expenses. The amount approved for use
by the Chairman and each Board
Member will be maintained in their
budget code. The amount approved for
general R&R will be maintained in a
separate budget class code by the
Secretary.
Dated this 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Attachment A
FCA Communications
Part 1—Mass Communications That Do
Not Require Review by the FCA Board
Prior to Distribution to Farm Credit
System Institutions
1. Issuances or revisions to:
• The FCA Examination Manual,
examination criteria, and examination
procedures;
• The FCA Uniform Call Report
instructions;
• Examination plans and general
guidance provided to examiners, except
those relating to Agency positions not
previously approved by the Board.
2. Requests for information on:
• Call Reports, LARS, or similar data
requests;
• Young, beginning, and small
farmers and ranchers reports;
• Other reports as required by statute
or determined necessary by the Board
(consistent with Board instruction).
3. Information that is being provided
on:
• Fraudulent activities;
• Removals/suspensions/
prohibitions;
• Other related activities.
4. Documents that have been issued
by other Federal agencies including
regulations, official staff commentary on
regulations, and forms;
5. FCA Handbook updates;
6. Annual Report of Assessments and
Expenses under 12 CFR 607.11;
7. Office of Inspector General mailings
for official purposes;
8. Vacancy Announcements;
9. PPM mailings.
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Part 2—Mass Communications That
Contain the Following Matters Require
Review by the FCA Board Prior to
Distribution to Farm Credit System
Institutions
1. Agency policy;
2. Agency legal interpretations;
3. Substantive Agency positions on
examination, corporate or accounting;
4. No-action positions;
5. Any communication listed in part
1 containing any of the matters listed in
part 2 would also require review by the
FCA Board prior to distribution.
Attachment B
Delegations
1. The FCA Board delegates to the
Chairman the authority to:
a. Sign letters notifying the Chairman
of the Boards of Farm Credit System
institutions of final approval for any
approved corporate application, after all
conditions for final approval have been
met and in accordance with applicable
procedures;
b. Execute and issue under the FCA
seal the new charter or charter
amendment document for such
institutions; and
c. Sign certificates of charter after new
charters and charter amendments are
executed.
The Chairman may re-delegate the
authority in item ‘‘a’’ to other FCA
officers or employees as needed.
2. The FCA Board delegates to the
Chairman the authority to approve
(preliminary and final) corporate
applications from associations
requesting to merge or consolidate
provided the applications are deemed
noncomplex, noncontroversial, and low
risk. Applications for mergers or
consolidations approved under
authority of § 7.8 of the Act will be
considered noncomplex,
noncontroversial, and low risk if they
meet all of the following criteria:
a. The applicant association(s) has a
current FIRS rating of 1, 2, or 3 (with no
3-rated association having a formal
enforcement action);
b. The continuing or resulting
association(s) has a gross loan volume of
$500 million or less;
c. The application(s) is consistent
with the Act and regulations governing
its approval, and
d. There are no policy or precedentsetting decisions embedded in the
request.
3. The FCA Board delegates to the
Chairman the authority to approve,
execute, and issue under the seal of the
FCA, amendments to charters requested
by Farm Credit associations, limited to
name changes and/or headquarters
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relocations. The Chairman may
redelegate this authority to other FCA
officers or employees. However, all
official charters or charter amendments
must be signed by the Chairman and the
Secretary and may not be delegated to
other staff.
Release of Consolidated Reporting
System Information
FCA–PS–65
Effective Date: 08–JUL–11.
Effect on Previous Action: None. See
60 FR 15921, Mar. 28, 1995; amended
by NV–11–15 (08–JUL–11).
Source of Authority: 12 CFR part 621,
subpart D; Freedom of Information Act, 5
U.S.C. 552; 12 CFR part 602; OMB Circular
A–130 (Nov. 28, 2000).
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The Farm Credit Administration (FCA)
Board Hereby Adopts the Following
Policy Statement
Purpose: The FCA Board has adopted
a policy to disclose reports of condition
and performance (Call Reports) and any
subsequent reports containing
nonexempt information that are
produced from the FCA’s Consolidated
Reporting System (CRS) [hereinafter
nonexempt CRS reports]. For purposes
of this policy, nonexempt CRS reports
are defined as reports produced from
the CRS containing information that has
been routinely disclosed in Farm Credit
System (System) institutions’ quarterly
and annual financial reports and filed
with the FCA.
The nonexempt CRS reports include
the Uniform Performance Report (UPR),
Uniform Peer Performance Report
(UPPR), Six-Quarter Trend Report, SixYear Trend Report, and Institution
Comparison Report. Under this policy,
the Call Reports and subsequent reports
for the institution that submitted the
information will be available to that
institution on the FCA Web site
approximately 35 days after the end of
a quarter or a fiscal year.
Objectives: The FCA facilitates the
competitive delivery of financial
services to agriculture while protecting
the public, the taxpayer, and the
investor. Consistent with that mission,
the FCA endeavors to provide
information to System institutions and
to the public. Call Reports and other
nonexempt CRS reports contain
information of value to the Agency, the
System, and the public that enables an
evaluation of the financial condition of
a System institution in comparison to its
peers. This information will provide
institutions with a succinct assessment
of performance, in addition to that
provided in the examination process.
The FCA believes that implementation
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of this policy statement will enhance
the FCA’s information management
activities in an efficient, effective, and
economical manner consistent with
OMB Circular A–130.
Operating Principles: Certain
information reported to the Agency in
compliance with Call Report
instructions and not routinely disclosed
by an institution, such as asset and
liability repricing schedules or loan
specific data, will continue to be exempt
from disclosure and the FCA will not
make it available under this policy
statement.
Availability of Reports: All
nonexempt CRS reports will be
available within 45 days after the end of
a quarter or a fiscal year free of charge
on the FCA Web site.
The FCA often receives special
requests for new reports containing
nonexempt CRS information not
produced from the CRS. Consistent with
the Freedom of Information Act, the
FCA will grant such special requests
when the record is readily reproducible
with reasonable efforts. We will assess
fees to recover the direct costs of
complying with the request, including
the cost of collecting, processing, and
disseminating the information. The FCA
may grant a request for a fee waiver to
an educational institution, a researcher,
a governmental agency, a newspaper,
and others, when the benefit derived
from releasing the information exceeds
the waived fee. Requests should be
directed to the Office of Management
Services.
Delegated Authority: The Director,
Office of Management Services, in
concurrence with the Director, Office of
Examination, and the General Counsel,
is responsible for implementing this
policy statement, developing operating
procedures, and assessing requests for
fee waivers. Any of these
responsibilities may be re-delegated to
appropriate staff in their respective
offices.
Reporting Requirements: The
Director, Office of Management
Services, shall report annually to the
Chief Executive Officer on the number
of special requests for new reports
containing nonexempt CRS information
and fees received.
Dated this 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
FCS Building Association Management
Operations Policies and Practices
FCA–PS–68
Effective Date: 08–JUL–11.
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Effect on Previous Action: Amends
NV–95–40, FCA–PS–68–7–JUL–95;
amended by NV–11–15 (08–JUL–11).
Source of Authority: Farm Credit Act of
1971, as amended (Act), and the FCS
Building Association (FCSBA) Articles of
Association and Bylaws.
The Farm Credit Administration (FCA)
Board Hereby Adopts the Following
Policy Statement
The FCSBA was established to
provide the facilities and related
services for the FCA and its field offices.
The FCSBA is owned by the banks of
the Farm Credit System (banks) and is
funded by assessments, rental income
from commercial tenants, and other
income. The original ownership interest
of each bank was based on the bank’s
assets as a percentage of total Farm
Credit System (FCS) assets on June 30,
1981. The FCSBA owns and operates
the FCA headquarters in McLean,
Virginia, and holds the leases and
provides certain services and
furnishings for FCA field offices. The
FCA Board has sole discretionary
authority under section 5.16 of the Act
to approve the plans and decisions for
such building and facilities. In order to
carry out this authority and to preserve
the FCA’s arms-length relationship with
the banks, the Articles of Association
and Bylaws of the FCSBA grant the FCA
Board the responsibility to oversee the
affairs of the FCSBA.
The purpose of this policy statement
is to outline general parameters and
policies for various operational
practices of the FCSBA that are
supplementary to the FCSBA Bylaws.
A. FCA Board Responsibilities
Board Responsibilities. As outlined
further in this policy statement, the FCA
Board is responsible for items including,
but not limited to, approval of all
budgets and subsequent changes in
object class limitations, signature
authorities for financial expenditures,
and long-term investment decisions.
The FCA Board concurs in the
development of performance standards,
goals and pay scales for the FCSBA
President as provided by the FCA
Chairman and Chief Executive Officer
(Chairman). Additionally, all contracts
in excess of $150,000 per year, or those
that cover the selection of outside
auditors, property management services
or the commission of special studies
with a cost in excess of $5,000 that were
not approved during the annual budget
process require the approval of the FCA
Board.
Chairman’s Responsibilities. The
Chairman shall be responsible for
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coordinating the FCA Board’s
involvement in, and responsibilities for,
the operation of the FCSBA, including:
(1) Developing performance standards
and pay scales for the President of the
FCSBA and appraising the President’s
performance with the concurrence of
other FCA Board Members, (2)
reviewing periodic financial and
operating reports, (3) providing
procedures as necessary concerning the
FCA staff’s relationship with the
FCSBA, and (4) reviewing such other
matters as the Chairman may deem
advisable for the purpose of bringing
such matters to the attention of the FCA
Board. The Chairman may delegate
these responsibilities to one or more
FCA staff, as he or she deems advisable,
except those responsibilities related to
pay and performance.
B. FCSBA President
General Signature Authority. As
required by Article V, Section 2 of the
FCSBA Bylaws, in addition to member
certificates, the FCA Board authorizes
the FCSBA President to sign general
correspondence and contracts deemed
necessary for the administration of
FCSBA activities. The FCSBA President
must get Board approval before
changing the signatory authority for
checks and before changing any banks
with which the FCSBA does business.
Duties. The FCSBA President reports
to the FCA Board and is generally
responsible within the context of
governing policies for all activities
necessary to: (1) Manage FCSBA support
to FCA, (2) manage the assets of the
FCSBA, and (3) understand and
consider the interests of the banks.
Specific responsibilities include budget
preparation and execution; planning;
financial reporting and control;
preparation of quarterly cash flow
reports; supervision of inventory and
supporting schedules for all fixed assets
(furniture, fixtures and equipment);
maintenance of management objectives
schedules; supervision of the
telecommunications system; the
purchase and contracting for all
supplies and services; records
management; necessary correspondence;
public relations activities in
consultation with the FCA Office of
Congressional and Public Affairs;
personnel supervision and evaluation;
the leasing and management of all space
in the Farm Credit Building; site
selection and lease negotiation for all
FCA Field Offices; investment
management; preparation and
administration of all policies and
operating procedures; engineering
oversight; construction management;
and preparation of all monthly,
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quarterly and annual reports required by
the FCA Board. The FCSBA President
shall coordinate these activities with the
FCA Liaison as appropriate or required.
Standard Operating Procedures. In
addition to those duties outlined under
Article V, Section 2, of the FCSBA
Bylaws and this Policy Statement, the
FCSBA President is authorized to issue
Standard Operating Procedures (SOPs),
as he or she deems appropriate, in an
effort to carry out the mission of the
FCSBA provided that each SOP is
reviewed by the FCA Board in advance.
The President shall maintain all SOPs in
a manner that reflects current policies
and practices. SOPs will be filed with
the Secretary to the Board, the FCSBA
and others as requested.
Periodic Reports. The FCSBA
President shall submit such periodic
reports and proposals to the FCA Board
and Liaison as may be necessary to
facilitate budgets, assessments, audits,
finances, plans, investments, reserve
policy and accounting procedures that
support the needs of the FCA Board and
the banks as owners of the FCSBA. The
FCSBA President shall normally report
to the FCA Board at least quarterly. At
a minimum, the report shall include:
1. A cash statement of operations, an
explanation of budget variances, and
month-to-date cash reconciliation
report. This report will include specific
notations of any expected reallocations
of funds requiring Board approval.
2. A status of all projects/building
improvements that are planned,
including current accounting of actual
costs of each project.
3. A summary of the status of reserve
accounts and investments including
documentation as available
demonstrating compliance with
investment policies.
4. A comprehensive Management
Objectives tracking report outlining the
status of issues and projects resulting
from a combination of one or more
sources such as audit and examination
recommendations, FCA Board
directives, as well as management
initiatives.
5. Other matters such as insurance,
leasing and contract performance issues
that may be timely for the particular
reporting period.
Annual Report. The FCSBA President
shall prepare an annual report on the
operations of the FCSBA. The draft of
the report shall be provided to the FCA
Board for its review within
approximately 30 days of receiving the
final report from the independent
auditors. After FCA Board review, the
report shall be provided to the banks
and may be provided to others who
have an interest in FCSBA affairs.
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Although other reports to the banks may
be warranted from time to time, the
Annual Report shall serve as the
primary report to the FCS. The report
shall include:
1. A discussion of significant issues
and accomplishments.
2. Audited financial statements and
reportable conditions.
3. A discussion of the previous year’s
and current year’s budget.
4. A discussion of basic and
supplemental services provided to FCA
by the FCSBA including an estimate of
market and actual values of those
services.
5. A discussion of non-budgeted
expenditures, that have been
reimbursed by the FCA.
C. FCA Liaison
Duties. The FCA Chief Executive
Officer appoints the Liaison to the FCS
Building Association. The FCA Liaison
facilitates and coordinates the FCA’s
needs with the FCSBA in such areas as
office renovations, internal moves,
telecommunications services, field
office support, and matters concerning
building security and Emergency
Preparedness. The FCA Liaison
provides an internal control function
through the countersigning of certain
categories of checks as designated by the
FCA Board. Additionally, the FCA
Liaison reviews FCSBA proposals that
come before the FCA Board, and
provides counsel regarding issues on
which the FCA Board must decide or
provide direction. The FCA Liaison is
also responsible for assuring that FCA
operations, as appropriate, comply with
FCSBA policies and practices as well as
FCA guidance relating to the FCSBA.
Finally, the FCA Liaison shall review
monthly cash reconciliation reports as
provided by the FCSBA President and
report irregularities, as appropriate.
D. Annual Audit and Management
Controls
Annual Audit and Management
Controls Review. As provided by Article
IV, Section 9, of the FCSBA Bylaws, the
FCSBA shall produce audited financial
statements on an annual basis. A review
of material internal control procedures
shall be included in the audit process
on a periodic basis.
E. Financial Management
Budget Philosophy. It is FCA Board
policy to ensure that every effort is
made to minimize operating expenses
without jeopardizing the banks’
investment in the assets that are
managed. Approved budgets are
planned and implemented in
consideration of a series of policy
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objectives as outlined in this statement
and always in an effort to balance
income and expenses.
Budget Development Time Frames.
FCSBA budgets are prepared on a
calendar year basis. Each November 1,
the FCSBA President shall provide the
proposed budget for the next calendar
year to the FCA Board for its review and
comment. With FCA Board concurrence,
the proposed budget may be made
available to the banks for further
comment.
Operating Revenues. The FCSBA
receives annual operating revenues from
(1) bank assessments, (2) office rental
income from private commercial
tenants, (3) other income from operating
balances, and (4) reserve account
transfers as necessary.
Operating Expenses. Operating
expenses are budgeted using the
appropriate object classifications as
follows, which may be modified with
FCA Board approval:
FCA Field Office Rent,
Taxes and Contract Services,
Maintenance and Repair,
Utilities,
Salaries and Benefits,
Professional and Consulting Fees,
Property Management Fees,
Other Expenses.
As a part of the draft budget proposal
to the FCA Board on or before
November 1st every year, the FCSBA
President shall provide an individual
expense breakdown for each item
within the object class. This breakdown
shall include the actual expense from
the previous year, the estimated expense
for the current year, and the projected
expense for the proposed year.
Unanticipated and emergency expenses
during the course of the year as well as
expenditures beyond amounts approved
for object classes may be funded out of
the operating reserve subject to FCA
Board approval.
Capital expenditures funded by
transfers from the component reserve
account should be shown separately
with a breakdown of individual
expenditures.
Operating Reserves. In consideration
of liquidity needs as well as
unanticipated expenses, each approved
budget shall include the sum equivalent
to 15 percent of the annual operating
expense as operating reserves.
Component Reserve Account. To
reserve for capital replacement items
and repairs to the McLean facility, the
FCSBA shall maintain a component
reserve account which is separate from
operating funds and reserves. The
funding for this account shall be
initially based on the Capital Reserve
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Study of June 1, 2005, which is then to
be updated every 10 years by an
independent engineering assessment.
The policy objective is to ensure
adequate funding, on a net present value
basis, to cover up to a 10-year capital
repair and replacement program to be
updated, as necessary, with each
approved budget.
Assessments. To ensure the
maintenance of minimum ‘‘cash on
hand,’’ FCSBA assessments are based on
bank assets as of June 30, and issued
quarterly consistent with the FCSBA
Bylaws. After taking interest, rental, and
other revenue into consideration,
budgeted annual assessments must be
sufficient to fund the operations of the
FCSBA, including the ability to hold
operating reserves equal to 15 percent of
expenses as well as component reserves
consistent with FCSBA policy.
Adjustments to assessments can occur
subject to FCA Board approval when
total year end ‘‘cash and cash
equivalents’’ exceed or are below
operating and component reserve
requirements. Adjustments are normally
considered for third quarter assessments
and are based upon the previous year’s
audited financial statements. Earnings,
if any, are distributed through this
process in lieu of direct payment.
Investments. The FCSBA invests its
funds in an effort to achieve maximum
yield consistent with liquidity needs
and investment safety. For short-term
accessibility, operating reserves and
other operating ‘‘cash on hand’’ may be
invested in short-term money market
accounts, certificates of deposits of
Federally insured institutions, and
short-term instruments of the U.S.
Government or commercial paper rated
P–1 or A–1 by Moody’s and Standard
and Poor’s, respectively. Operating
reserves investment decisions are made
by the FCSBA President consistent with
this policy.
With the goal of achieving the best
long-term returns while minimizing
risk, component reserves are invested
solely in instruments backed by the U.S.
Government and agencies of the U.S.
Government. The maturities and
amounts of component reserve
investments shall be generally
consistent with the anticipated liquidity
needs of the FCSBA capital replacement
and repair program. Component reserve
investment decisions require FCA Board
approval.
Budgeting for Reimbursable Expenses.
The FCA regularly reimburses the
FCSBA for telecommunications and
other expenditures on a cost recovery
basis. Because there is no positive or
negative financial impact on the FCSBA,
these transactions are handled on a
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54651
‘‘net’’ basis and thus not included in the
budget.
Budget Execution. The FCSBA
President shall administer the annual
budget as approved by the FCA Board.
Expenditures during the course of the
year that would exceed the object class
budget require prior FCA Board
approval. Exceptions to this policy are
made in the event of emergency or the
funding of accrued employee benefits.
Expenditures in these cases will be
brought to the FCA Board in the form
of an Executive Summary for approval
within 10 business days of occurrence.
In considering its approval, the FCA
Board has the option of either adjusting
other object classes, utilizing the
operating reserve, or taking other action,
as it deems appropriate.
F. Contract Management
General. In accordance with Article
IV of the FCSBA Bylaws, it is the policy
of the FCA Board that all contracts
issued on or on behalf of the FCSBA be:
1. Competitively bid with a minimum
of three bids, when in excess of $15,000.
2. Obtained with a minimum of three
price quotes, when less than $15,000,
and more than $2,500.
3. Generally awarded to the lowest
bidder meeting contract specifications
except in those instances where the
differences in cost are considered
negligible relative to a particular benefit
offered by a higher bid.
4. Reviewed and approved by the FCA
Board when in excess of the amount of
$150,000, or for the purpose of outside
auditors, property managers, or special
studies that were not approved during
the budget process.
5. Retained in file a minimum of 3
years.
6. When possible, bid in conjunction
with the budget year.
Exceptions. Notwithstanding the
above requirements, the FCA Board has
the authority to make exceptions, as it
deems appropriate to the circumstances.
Additionally, competitive bidding is not
required if the circumstances warrant
immediate resolution or are vendor
specific to equipment, in which case the
FCSBA President will provide the FCA
Board with a detailed report of the
surrounding circumstances in 10
business days.
Contract Timeframes. Recurring
contracts are normally for annual terms;
however, when deemed cost effective,
the FCSBA may allow terms up to 3
years. Obtaining best and final offers
from bidders is encouraged.
Approval Authorization. The FCSBA
President is authorized to approve
contracts consistent with these
guidelines and the FCSBA SOP. The
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3. The capacity exists for the FCSBA
to provide the service within the context
of its employee expertise and/or its
overall responsibilities to all tenants.
4. By providing the service, an
advantage inures to the benefit of the
FCS that would not otherwise occur.
5. An FCA Board determination that
the service will be of particular benefit
G. Asset Management
to the FCA, the FCS or the public.
Personal Property. The FCSBA
As deemed necessary, the FCSBA
President shall insure that adequate
President shall issue SOPs prescribing
methodologies and systems are in place operational or other details of FCSBA
to ensure that FCSBA property is
services provided to the FCA.
Non-Reimbursable and Reimbursable
effectively accounted for on a periodic
Services. Whether or not the FCA will
basis.
reimburse the FCSBA for a
H. The FCSBA as a System Institution
supplemental service will generally be
Examination. The FCSBA is examined determined as follows:
as provided by the Act. The scope of
1. Reimbursement is not required for
examination shall be generally
support provided by the FCSBA when
consistent with the level of risk deemed resources are available within FCA
associated with the operating practices
Board approved budgets for the FCSBA
of FCSBA management.
and one or more of the criteria for
Assessments for Examination. The
supplemental services expenditures
FCSBA will be charged annually for
outlined above have been met.
assessments consistent with FCA
2. Unless otherwise determined by an
regulation found in 12 CFR 607.4,
FCA Board action, supplemental
‘‘Assessment of other System entities.’’
support services requiring resources
Liquidation by System Request.
beyond that available within the FCSBA
Should the Boards of the banks adopt,
budget will require reimbursement.
pursuant to Article IX of the FCSBA
Reimbursements in excess of $10,000
Articles of Association, a resolution to
that occur on an ongoing basis will
dissolve and liquidate the FCSBA, the
require a written Memorandum of
dissolution and liquidation will be
Understanding between the FCA and
subject to, and conducted in accordance the FCSBA outlining the terms and
with, the Act and the regulations
conditions of the services provided and
promulgated thereunder.
reimbursement. One time or minor
recurring reimbursements may be
I. FCSBA Services to the FCA
handled by purchase orders.
Basic Services. The FCSBA provides
Reimbursable expenses shall be
space to the FCA headquarters in
determined on an actual cost basis or a
McLean, Virginia, and leases space on
recognized methodology to achieve the
behalf of FCA for its field offices. Basic
goal of fully reimbursing the FCSBA on
services provided to the FCA are similar the transaction.
to what is typical of rented office space
Dated this 8th day of July 2011.
and include, but are not limited to, such
By Order of the Board.
items as utilities, janitorial service,
Dale L. Aultman,
repairs for normal wear and tear,
Secretary to the Board.
parking and appropriate landscaping as
well as amenities which are available to Disaster Relief Efforts by Farm Credit
all tenants and have the effect of
Institutions
maintaining property values and/or
FCA–PS–71
enhancing rental income.
Effective Date: 08–JUL–11.
Supplemental Services. In addition to
Effect on Previous Action: Supersedes
providing basic services, the FCSBA
FCA Bookletter 368–OE, September 14,
will, on a case-by-case basis, provide
1993. See 61 FR 37471, July 18, 1996;
certain supplemental support services
amended by NV–11–15 (08–JUL–11).
related to FCA’s housing needs under
the following kinds of circumstances:
Source of Authority: Section 5.17 of the
1. The FCSBA can provide the service Farm Credit Act of 1971, as amended.
on better terms than the FCA.
The Farm Credit Administration (FCA)
2. The service, if not provided by the
Board Hereby Adopts the Following
FCSBA, could potentially adversely
Policy Statement
affect the aesthetic or other value of
property, systems, building
The FCA recognizes that in the
infrastructure, the health and safety of
aftermath of hurricanes, floods,
occupants, or the occupancy level of
droughts, or other natural or man-made
commercial tenants.
disasters, specific sections of the
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FCSBA President may re-delegate up to
$50,000 of contracting authority to the
building property manager.
Contract Performance. The FCSBA
President shall insure that adequate
systems are in place to measure,
administer, and report on the
performance of FCSBA contracts.
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country or segments of the agricultural
community are declared to be disaster
areas. Such disaster area declarations
may be made by the President of the
United States, the Governor of a State,
or a specific Federal or State
government agency. When a disaster
area includes a rural community where
a Farm Credit institution is located or
does business, the institution can be
affected in two ways: directly, such as
by physical damage to the institution
itself or incapacitation of employees; or
indirectly, such as by damage suffered
by individuals and businesses with
loans from the institution. In the interest
of providing the highest quality and
most efficient service to agricultural
borrowers, the FCA encourages Farm
Credit institutions operating in disasteraffected areas to work within their
communities to help alleviate pressures
on borrowers under stress.
When conducted in a reasonable and
prudent manner, the efforts of Farm
Credit institutions to work in the
public’s interest with borrowers in the
disaster areas will be considered
consistent with safe and sound business
practices. It is the FCA’s belief that the
institutions have considerable flexibility
under the existing regulations to
provide appropriate disaster relief. Such
relief efforts may include, but would not
necessarily be limited to, extending the
terms of loan repayment or restructuring
a borrower’s debt obligations. In
addition, a Farm Credit institution may
consider easing some loan
documentation or credit-extension
terms for new loans to certain borrowers
or requesting the FCA to grant relief
from specific regulatory requirements. It
is the FCA’s belief that the principal
objectives of any disaster assistance
program developed by a Farm Credit
institution and approved by its board
should be to:
1. Provide necessary and timely relief
to disaster-affected customers of the
institution;
2. Minimize the adverse effects of the
disaster on the profitability, financial
condition, operating efficiency, and
morale of customers, as well as on the
institution;
3. Review applicable statutory and
regulatory requirements and determine
whether requesting the FCA to provide
exceptions from regulatory requirements
would be appropriate; and
4. Promote, through such
consideration and actions, the Farm
Credit System’s mandate to provide
American farmers and ranchers with
sound, adequate, and constructive credit
and closely related services.
The FCA further believes that proper
risk controls and management oversight
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should be exercised to ensure that such
efforts serve the interests of the lending
institution as well as those of the
community. Any institution providing
disaster relief should document such
relief actions as well as any significant
departures from otherwise applicable
institution policies and procedures.
The aforementioned objectives and
risk controls are conditions and
characteristics on which the FCA will
evaluate an institution’s relief activities.
These objectives and risk controls
should be set forth in any request to the
FCA for specific regulatory relief.
The FCA also recognizes that
conditions related to a disaster may
impair an institution’s ability to comply
in a timely way with regulatory
reporting and publishing requirements.
Farm Credit institutions should contact
the Director of the Office of Examination
when relief from specific regulatory or
reporting requirements is needed.
Additionally, the Board of Governors
of the Federal Reserve System (Federal
Reserve Board) has, from time to time,
granted relief from certain Regulation Z
requirements to consumers located in
declared disaster areas. It is likely that
the Federal Reserve Board will continue
to promulgate similar temporary
exceptions in disaster-affected areas.
When this occurs, the FCA will, as a
matter of convenience, continue to
notify the Farm Credit institutions
affected by Regulation Z exceptions.
Dated this 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Financial Institution Rating System
(FIRS)
FCA–PS–72
Effective Date: 08–JUL–11.
Effect on Previous Action: Amended
by NV–11–15 (08–JUL–11).
Source of Authority: Sections 5.9 and 5.17
of the Farm Credit Act of 1971, as amended.
The Farm Credit Administration Board
Hereby Adopts the Following Policy
Statement
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I. Policy
The Financial Institution Rating
System (FIRS) shall be the rating system
used by Farm Credit Administration
(FCA or Agency) examiners for
evaluating and categorizing the safety
and soundness of Farm Credit System
(System) institutions on an ongoing,
uniform, and comprehensive basis.
The FIRS will provide valuable
information to the Agency for assessing
risk and allocating resources based on
the safety and soundness of regulated
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institutions. Ratings assigned to
regulated institutions will be adjusted
periodically so that they accurately
reflect the condition of institutions.
II. Standards and Implementation
Based on the conclusions reached in
the ongoing examination of an
institution’s financial, managerial, and
operational condition, FCA examiners
will assign ratings to each of the rating
factor components and assign a
composite rating that reflects the
condition and overall safety and
soundness of the System institution.
These ratings shall be reported to the
institution’s Board of Directors and
Chief Executive Officer.
Component and composite ratings are
assigned on a 1 to 5 numerical scale. A
1-rating indicates the strongest
performance and management practices
and the least degree of supervisory and
regulatory concern, while a 5-rating
indicates an extremely high, immediate
or near-term probability of failure and
unsatisfactory management practices
and, therefore, the highest degree of
concern.
Although each institution has its own
examination and supervisory issues and
concerns, the FIRS is structured to
evaluate all significant financial, asset
quality, and management factors
common to all System institutions.
Examination criteria for each of the
rating components are defined in the
FCA Examination Manual, which is
available to the public. The FCA
Examination Manual also incorporates
the evaluative criteria under which
component and composite ratings are
assigned.
Composite Rating
The FIRS provides a general
framework for assimilating and
evaluating all significant financial,
managerial, and operational factors to
assign a composite rating to each
System institution. The composite
rating is based on a qualitative and
quantitative analysis of the factors
comprising each of the following
components, the interrelationships
among components, and the overall
level of concern for those risks that
affect a System institution.
The composite rating does not assume
a predetermined weight for each
component nor does it represent an
arithmetic average of assigned
component ratings. The weight given to
any individual component in
determining composite ratings varies
depending on the degree of concern
associated with the component and the
threat posed to the overall safety and
soundness of the institution.
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Component Ratings
Listed below is a brief description of
the FIRS components and the more
common evaluative criteria and factors
considered under each component.
• Capital—A System institution is
expected to maintain capital and capital
management practices commensurate
with the nature and extent of risks to the
institution and the ability of
management to identify, measure,
monitor, and control these risks. The
capital component is based on an
evaluation of an institution’s capacity to
absorb losses and provide for future
growth. An evaluation of capital relies
on many factors such as regulatory
capital requirements, trends, portfolio
and institutional risk, growth, adequacy
of risk funds, management capability,
and other factors as appropriate.
• Assets—This component is based
on an assessment of both the quality of
the current portfolio and the quality of
the associated risk management
processes that substantially impact the
quality of assets. An assessment of
assets relies on many factors such as
loan portfolio management, investment
portfolio management, loan portfolio
trends, risk identification processes,
credit administration, allowance for
loan losses, and other factors that affect
the quality, performance, income
producing capacity, and stability of
assets.
• Management—The management
component is based on an assessment of
board and management performance
against all factors considered necessary
to operate the institution within
accepted banking practices and in a safe
and sound manner in accordance with
applicable laws, regulations, and
guidelines.
• Earnings—This component is based
on an evaluation of the quantity,
quality, and sustainability of the
institution’s earning performance. An
evaluation of earnings considers factors
such as the level of earnings,
composition and quality of net income,
stability of earnings performance,
relationship to portfolio risk, quality of
earnings management, and other factors
as deemed appropriate.
• Liquidity—The liquidity component
is based on an evaluation of an
institution’s capacity to promptly meet
the demand for payment of its
obligations, fund its loan portfolio, and
readily meet the reasonable credit needs
of the territory served. An evaluation of
liquidity also considers continued
access to funding, the existence of
secondary sources of liquidity, and
other factors as deemed appropriate.
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• Sensitivity—This component
reflects the degree to which changes in
interest rates may affect earnings or the
market value of an institution’s equity.
An evaluation of this component
considers such factors as the size and
complexity of the institution’s financial
activities, the level of interest rate risk
exposure relative to capital and
earnings, investment and derivatives
activities, management’s ability to
identify, measure, monitor, project, and
control interest rate risk, and other
factors as deemed appropriate.
III. Responsibility
It is the responsibility of the Chief
Examiner to ensure that the components
used to support the composite ratings
are reviewed periodically to make
certain they reflect the material matters
that impact the safety and soundness of
institutions. In this respect, the Chief
Examiner shall make recommendations
to the FCA Board to add or delete
components as necessary. Specific
evaluative criteria and factors for
determining component and composite
ratings shall be established by the Chief
Examiner and incorporated in the FCA
Examination Manual or by other means
as appropriate. The Chief Examiner is
responsible for ensuring that ratings
assigned to institutions are
commensurate with and accurately
reflect the risk in the institutions.
IV. Reporting
At least quarterly, the Chief Examiner
will provide the FCA Board a report of
the composite rating of all FCS
institutions.
V. Implementation
System institutions examined after
the date this policy is adopted by the
FCA Board will be assigned composite
and component ratings in accordance
with this Policy Statement.
Dated this 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
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FCA–PS–77
Effective Date: 08–JUL–11.
Effect on Previous Action: Amended
by NV–11–15 (08–Jul–11).
Source of Authority: Section 5.9 of the
Farm Credit Act of 1971, as amended.
The Farm Credit Administration (FCA)
Board Hereby Adopts the Following
Policy Statement
The Farm Credit Administration
Board believes that each Farm Credit
System institution has an affirmative
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Jkt 223001
System (System) bank, association, or
service corporation as belonging to the
Farm Credit System and is not misled
by the name the institution uses. We
also believe that Farm Credit System
institutions should have some flexibility
in proposing official names for their
institutions.
Official Names
The Farm Credit Administration (FCA
or Agency) Board Hereby Adopts the
Following Policy Statement
The FCA Board will approve an
official name for a Farm Credit System
bank,1 association, or service
corporation that meets the following
two requirements:
• The name includes appropriate
identification of the institution as a
System institution; and
• The name is not misleading or
inappropriate.
Appropriate identification means the
name contains either 1) the relevant
statutory or regulatory designation, or
its corresponding acronym, or 2) other
appropriate identification as a System
institution. Relevant statutory and
regulatory designations, and their
corresponding acronyms, are as follows:
• Agricultural Credit Bank or ACB.
• Bank for Cooperatives or BC.
• Farm Credit Bank or FCB.
• Agricultural Credit Association or
ACA.
• Production Credit Association or
PCA.
• Federal Land Credit Association or
FLCA.
• Federal Land Bank Association or
FLBA.
Other appropriate identification as a
System institution includes the
following:
• Farm Credit Services.
• Farm Credit.
• FCS.
• A member of the Farm Credit
System.
Misleading names are those that a
reasonable person might find confusing.
For example, we would not issue a
charter to an institution requesting a
name that is the same as or similar to
that of an existing institution because
the public might find this confusing.
Merely avoiding identical names is not
enough; to minimize confusion, a
proposed name must sufficiently
distinguish an institution from other
institutions. If the Agency had approved
a charter for an institution using
MyTown, ACA, as its official name, it
would not issue a charter for an
institution proposing ACA of MyTown
or MyTown Farm Credit Services, ACA,
as its official name. Nor would we issue
Objective
Our objective is to ensure that the
public can identify a Farm Credit
1 Farm Credit System bank includes Farm Credit
Banks, Banks for Cooperatives, and Agricultural
Credit Banks.
Dated this 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Official Names of Farm Credit System
Institutions
Borrower Privacy
VerDate Mar<15>2010
and continuing obligation to respect the
privacy of its customers and to protect
the security and confidentiality of those
customers’ nonpublic personal
information. Since 1972, FCA
regulations have required that borrower
information be held in strict confidence
by Farm Credit institutions, their
directors, officers and employees. Our
regulations at 12 CFR part 618, subpart
G specifically restrict Farm Credit
institution directors and employees
from disclosing information not
normally contained in published reports
or press releases about the institution or
its borrowers or members. These
regulations also provide Farm Credit
institutions clear guidelines for
protecting their borrowers’ nonpublic
personal information. Particularly since
Farm Credit institutions are owned and
directed by the farmers, ranchers and
cooperatives who borrow from them, the
privacy and security of customer
information is vital to the System’s
continued dependability and long-term
success. Therefore, the FCA Board
strongly encourages each System
institution to regularly inform their
customers of the institution’s obligation
to protect nonpublic personal
information.
Additionally, rapid technological
advances have made unauthorized and/
or inadvertent disclosure of personal
financial information more common and
more difficult to protect against.
Therefore, in addition to monitoring
compliance with our regulations on
disclosure, FCA will examine each
System institution’s internal controls on
a regular basis to ensure that adequate
safeguards are in place to protect the
confidentiality of customer nonpublic
personal information.
FCA–PS–78
Effective Date: 08–JUL–11.
Effect on Previous Action: Supercedes
FCA–PS–63 [NV–96–22] 05/30/96;
amended by NV–11–15 (08–JUL–11).
Source of Authority: Sections 1.3(b),
2.0(b)(8), 2.10(c), 3.0, 5.17(a)(2)(A), 7.0,
7.6(a), 7.8(a) of the Farm Credit Act of 1971,
as amended; 12 CFR part 611.
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a charter with the phrase ‘‘farm credit
association’’ as part of the official name,
because the inevitable use of the
acronym ‘‘FCA’’ would be confused
with the name of the Agency. Also, we
would not approve a name for an
institution that could cause the public
to confuse that institution’s authorities
and services with those of a commercial
bank, thrift institution, or credit union.
For example, we would not issue a
charter to a System institution
requesting the term ‘‘national bank’’ in
its official name because this could
cause confusion regarding the services
the institution may offer.
Trade Names
A System institution may use a trade
name. The trade name must not be
misleading. If an institution uses a trade
name, it must use both the official and
trade names in all written
communications.
Related Issues
srobinson on DSK4SPTVN1PROD with RULES4
If an ACA and its subsidiaries operate
under substantially different names,
they must clearly identify the parent/
subsidiary relationship in all written
communications. For example, if
MyTown, PCA, is a subsidiary of
EveryTown, ACA, the PCA must
identify itself as a subsidiary of the
parent ACA in its written
communications.
Please note that while the FCA cannot
reserve names, the Patent and
Trademark Office will register names
under certain conditions. When
applying for a name change or new
charter, System institutions should
submit a statement indicating whether
they have applied for a trademark in
that name.
This statement addresses only FCA’s
policy. Other laws, such as Federal or
state trademark laws, may apply.
Institutions should ensure that their
official and trade names do not infringe
the trademarks or service marks of other
companies. Institutions may wish to
consult legal counsel to determine
whether their proposed names could be
challenged or protected under state or
Federal law.
Dated This 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Farm Credit Administration Board.
Consideration and Referral of
Supervisory Strategies and
Enforcement Actions
FCA–PS–79
Effective Date: 08–JUL–11.
VerDate Mar<15>2010
16:27 Aug 31, 2011
Jkt 223001
Effect on Previous Action: Rescinds
and supersedes the previous PS–79;
amended by NV–11–15 (08–JUL–11).
Source of Authority: Sections 5.19, 5.25–
5.35 of the Farm Credit Act of 1971, as
amended.
The FCA Board Hereby Adopts the
Following Policy Statement
The Farm Credit Administration (FCA
or Agency) Board provides for the
regulation and examination of Farm
Credit System (System or FCS)
institutions, which includes the Federal
Agricultural Mortgage Corporation
(Farmer Mac), in accordance with the
Farm Credit Act of 1971, as amended
(the ‘‘Act’’). This policy addresses
conditions that warrant referrals to the
Agency’s Regulatory Enforcement
Committee (REC) to consider
appropriate supervisory strategies and
recommend to the FCA Board the use of
the enforcement authorities conferred
on the Agency under part C, Title V of
the Act or other statutes. Enforcement
actions include formal agreements,
orders to cease and desist, temporary
orders to cease and desist, civil money
penalties, suspensions or removals of
directors or officers, and conditions
imposed in writing to address unsafe or
unsound practices or violations of law,
rule or regulation (Enforcement
Document). Taking these actions, in an
appropriate and timely manner, is
critical to maintaining shareholder,
investor, and public confidence in the
financial strength and future viability of
the System.
This policy provides only internal
FCA guidance. It is not intended to
create any rights, substantive or
procedural, enforceable at law or in any
administrative proceeding.
Composition of the REC
The Chairman of the FCA Board will
designate the Chief Operating Officer
and the office directors of the Office of
Examination, Office of General Counsel,
and Office of Regulatory Policy, or the
directors of successor offices, as voting
members of the REC. A representative
from the Farm Credit System Insurance
Corporation will be invited to
participate in REC activities as a nonvoting member. The Chairman of the
FCA Board will also designate one of
the voting REC members as Chairman of
the REC.
Due to the statutory independence of
the Office of Secondary Market
Oversight (OSMO), there will be
different REC membership when
considering issues related to Farmer
Mac.
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54655
Referrals to the REC
Recommended supervisory strategies
or enforcement actions concerning an
FCS institution or person will be
referred to the REC when any of the
conditions exist, as specified below, or
when a specified condition does not
exist, but consideration of an
enforcement action or review by the
REC is appropriate. The REC will review
the proposed actions and draft
enforcement documents and assess the
recommendations for pursuing any such
actions. The REC may revise the
recommendations and will document its
concurrence or nonconcurrence with
the supervisory strategy or enforcement
action.
Conditions Warranting Referral to the
REC
Any one of the following conditions
requires a referral to the REC for its
consideration of supervisory strategies
or enforcement actions.
1. A ‘‘4’’ or ‘‘5’’ composite FIRS rating
is assigned to an FCS institution;
2. The institution or person is deemed
unable or unwilling to address a
material: (a) Unsafe or unsound
condition or practice; or (b) violation or
ongoing violation of law or regulation;
3. The institution or person is about
to engage in a material unsafe or
unsound practice or is about to commit
a willful or material violation of law or
regulation that exposes the institution to
significant risk;
4. Conditions meet the statutory
criteria for a suspension or removal;
5. Conditions meet the statutory
criteria for assessing a civil money
penalty and the factors to be considered
in determining the amount of a civil
money penalty justify the imposition of
the penalty;
6. Conditions meet the statutory
criteria to place an FCS institution in
conservatorship or receivership;
7. An institution or person fails to
comply with an Enforcement Document
or is unwilling or unable to address a
violation of a condition imposed in
writing; or
8. Conditions justify termination or
modification of an existing Enforcement
Document.
As appropriate, referrals for the REC’s
consideration also may be made for
conditions not specified above.
Notification of the REC
The REC will be notified when any
institution is assigned a ‘‘3’’ composite
FIRS rating and informed of the
Agency’s supervisory strategies.
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Consultation With the REC
For institutions under a formal
Enforcement Document, or assigned a
composite FIRS rating of ‘‘4’’ or ‘‘5’’,
requests for prior approvals, or other
actions, will be referred to the REC for
consultation.
srobinson on DSK4SPTVN1PROD with RULES4
Referral to the FCA Board
The REC will refer to the FCA Board
for its consideration all
recommendations concurred with by the
REC for the placement of an
Enforcement Document on a FCS
institution or person. In the unlikely
instance, when an institution receives a
composite ‘‘4’’ or ‘‘5’’ FIRS rating and a
VerDate Mar<15>2010
16:27 Aug 31, 2011
Jkt 223001
formal Enforcement Document is not
recommended to the FCA Board, the
REC will promptly document and report
the Agency’s supervisory strategy to the
FCA Board.
Reporting to the FCA Board
The REC Chairman will report at least
quarterly to the FCA Board if matters are
referred to or reviewed by the REC, but
FCA Board action is not subsequently
requested.
Due to OSMO’s statutory
independence, the Director of OSMO
will develop procedures for actions
affecting Farmer Mac.
Dated this 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Farm Credit Administration Board.
Dated: August 25, 2011.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
Actions by the REC
[FR Doc. 2011–22203 Filed 8–31–11; 8:45 am]
The REC will develop procedures to
address the responsibilities outlined
herein.
BILLING CODE 6705–01–P
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Agencies
[Federal Register Volume 76, Number 170 (Thursday, September 1, 2011)]
[Rules and Regulations]
[Pages 54638-54656]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22203]
[[Page 54637]]
Vol. 76
Thursday,
No. 170
September 1, 2011
Part IV
Farm Credit Administration
-----------------------------------------------------------------------
12 CFR Chapter VI
Board Policy Statements; Rule
Federal Register / Vol. 76 , No. 170 / Thursday, September 1, 2011 /
Rules and Regulations
[[Page 54638]]
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FARM CREDIT ADMINISTRATION
12 CFR Chapter VI
Board Policy Statements
AGENCY: Farm Credit Administration.
ACTION: Policy statements.
-----------------------------------------------------------------------
SUMMARY: The Farm Credit Administration (FCA) Board recently undertook
its 5-year review of FCA Board policy statements. This review resulted
in revisions to 14 policy statements that are mostly technical,
grammatical, or syntactical. However, a few of the revisions add
clarity to the policy statements and other revisions incorporate
changes required either by new laws or by changes in the functional
statement of operations for some FCA offices.
DATES: The effective date is indicated on each individual policy
statement set forth below.
FOR FURTHER INFORMATION CONTACT: Wendy Laguarda, Assistant General
Counsel, Office of General Counsel, Farm Credit Administration, 1501
Farm Credit Drive, McLean Virginia 22102-5090, (703) 883-4020, TTY
(703) 883-4020.
SUPPLEMENTARY INFORMATION: A list of the 14 revised FCA Board policy
statements and the text of each are set forth below in their entirety.
All FCA Board policy statements may be viewed on FCA's Web site. Please
go to https://www.fca.gov. Then select ``Laws & Regulations,'' then
select ``FCA Handbook,'' then select ``FCA Board Policy Statements.''
FCA Board Policy Statements
FCA-PS-37 Communications During Rulemaking
FCA-PS-41 Alternative Means of Dispute Resolution
FCA-PS-44 Travel
FCA-PS-53 Examination Philosophy
FCA-PS-59 Regulatory Philosophy
FCA-PS-62 Equal Employment Opportunity and Diversity
FCA-PS-64 Rules for the Transaction of Business of the Farm Credit
Administration Board
FCA-PS-65 Release of Consolidated Reporting System Information
FCA-PS-68 FCS Building Association Management Operations Policies
and Practices
FCA-PS-71 Disaster Relief Efforts by Farm Credit Institutions
FCA-PS-72 Financial Institution Rating System (FIRS)
FCA-PS-77 Borrower Privacy
FCA-PS-78 Official Names of Farm Credit Institutions
FCA-PS-79 Consideration and Referral of Supervisory Strategies and
Enforcement Actions
Communications During Rulemaking
FCA-PS-37
Effective Date: 08-JUL-11.
Effect on Previous Actions: Replaces previous Farm Credit
Administration (FCA or Agency) Board policy on public communications
during a rulemaking, adopted March 25th, 1992. See 57 FR 11083, April
1, 1992. Amended by NV-11-15 (8-JUL-11).
Source of Authority: None.
The FCA Board finds that it is in the public interest and
consistent with the requirements of the Administrative Procedure Act to
revise its policy on communications with the public during the
rulemaking process.
The FCA Board Hereby Adopts the Following Policy Statement
In keeping with the need to ensure an open, freely accessible, and
well-informed rulemaking process while balancing the need for
impartiality and fairness, the FCA adopts the following guidelines
governing substantive oral communications between the public and Board
members and staff during the course of a related rulemaking.
Before a Rulemaking Begins
Unrestricted communication with the public before rulemaking begins
supports and promotes the Agency's efforts to design creative and
effective regulatory policy. No specific guidelines apply to that
communication.
From Publication of Notice of Proposed Rulemaking to the End of the
Comment Period
After a particular rulemaking has begun with publication of a
notice of proposed rulemaking (including publication of an advance
notice of proposed rulemaking), FCA encourages members of the public to
provide written comments during the public comment period. All written
comments are placed in a public file, where they are available for
examination and copying during normal business hours. The comments
receive careful consideration and become part of the public record of
the rulemaking.
Where appropriate, FCA may also conduct public hearings or open
meetings to take testimony or hold discussions on a rulemaking. Such
opportunities for comment from the public will be announced in advance
and the comments received will be placed in the public rulemaking file.
Substantive oral communications during the comment period between
FCA personnel, including Board members and staff, and members of the
public regarding the subject of an ongoing rulemaking will be
summarized in writing and placed in the public rulemaking file. While
FCA personnel are always available to explain or clarify proposed
rules, if an individual wants to engage FCA personnel in substantive
discussion concerning a published proposed rule, he or she should first
file a written comment covering the matter to be discussed,
particularly if he or she has not already filed a written comment. If
new substantive comments are discussed, FCA staff will reduce the
substance of such comments to writing, promptly place it in the public
rulemaking file, and urge the individual to submit a written comment.
From the Close of the Comment Period to the Adoption of the Final Rule
From the close of the comment period until adoption of the final
rule, substantive discussions between members of the public and FCA
personnel relating to the proposed rule should be curtailed. In the
interest of fairness, if new facts or arguments must be brought to the
attention of the FCA, the communication must be in writing so that it
can promptly be placed in the public rulemaking file.
FCA believes these guidelines will help ensure a complete
rulemaking record for future agency consideration of the rule or in the
event of court review. Further, FCA strongly believes that the
rulemaking process must be open and evenhanded in order to avoid even
the appearance of impropriety or undue influence that might arise from
private communication during certain periods. Finally, if a substantive
comment on a proposed rule were transmitted to FCA in a private
communication that did not become part of the public record, other
members of the public would not have an opportunity to respond to any
new arguments or facts contained in that communication. Because FCA
believes that its rulemaking process benefits from give and take among
commenters who are able to consider each others' comments, this policy
statement requires all comments to be placed in the public rulemaking
file.
This policy statement does not apply to public communications
regarding any rulemaking issue unless and until the matter becomes the
subject of a notice of proposed rulemaking. Nothing in the policy
statement is meant to affect the ability of FCA to use negotiated
rulemakings, open meetings or other types of public forums to augment
its rulemaking under section 553 of the Administrative Procedure Act.
Dated this 8th day of July 2011.
[[Page 54639]]
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Alternative Means of Dispute Resolution
FCA-PS-41
Effective Date: 8-JUL-11.
Effect on Previous Action: Originally adopted 16-JUL-92 (see 57 FR
33198, July 27, 1992); amended 30-MAY-96; amended 10-FEB-97; amended by
NV-11-15 (8-JUL-11).
Source of Authority: Administrative Dispute Resolution Act of
1996, Public Law 104-320, 110 Stat. 3870 (1996), and codified at 5
U.S.C. 571 et seq.
The Administrative Dispute Resolution Act of 1996 (Act), addresses
the concern that traditional methods of dispute resolution, such as
litigation and administrative adjudication, have become increasingly
time-consuming and expensive. The Act authorizes and encourages greater
use of alternative means of dispute resolution (ADR), requiring each
Federal agency to adopt a policy addressing the use of ADR.
ADR consists of informal, voluntary procedures used by parties who
seek to resolve their disputes by consent. Such procedures include, but
are not limited to, mediation, conciliation, facilitation, fact-
finding, arbitration, and mini-trials, or any combination thereof. By
emphasizing the common goals of the parties and fostering an atmosphere
of cooperation, ADR can offer a less contentious and more expeditious
alternative to traditional methods of dispute resolution such as
litigation and administrative adjudication.
The use of ADR in appropriate circumstances is consistent with the
Farm Credit Administration's (FCA or Agency) mission as an agency. To
promote a safe and sound, competitive Farm Credit System, the FCA
always strives to effectively and efficiently manage its resources. By
expediting the resolution of certain disputes, ADR can reduce the FCA's
transaction costs, increase the FCA's productivity, and help the FCA
accomplish its goals.
The FCA Board Hereby Adopts the Following Policy Statement
It is the policy of the FCA to resolve disputes in an effective and
efficient manner. Many of the disputes encountered by the FCA are
resolved most effectively and efficiently through settlement
negotiations between the FCA and the other parties to the disputes
prior to the initiation, or in the early stages of, more formal
litigation or administrative adjudication. The FCA will continue to use
settlement negotiations as a method of dispute resolution.
In addition, the FCA will consider whether it is appropriate to use
ADR when a dispute arises. In assessing the advisability of using ADR
procedures, as defined in 5 U.S.C. 571(3), the FCA will consider
whether such procedures are likely to reduce the FCA's transaction
costs, increase the FCA's productivity, and help the FCA accomplish its
goals of effective regulations and policies and the enhancement of
FCA's effectiveness and cost efficiency. The FCA will also consider the
factors set forth in 5 U.S.C. 572(b) in deciding whether it is
appropriate to use such ADR procedures.
The FCA's Dispute Resolution Specialist (ADR Specialist),
designated by the Chairman, is responsible for the implementation of
this policy statement. The ADR Specialist is available to assist FCA
personnel in considering the appropriate application of ADR procedures.
Before deciding whether it is appropriate to use an ADR procedure, FCA
personnel will consult with, and obtain the concurrence of, the ADR
Specialist or his or her designee.
The ADR Specialist and those FCA personnel involved in resolving
disputes are encouraged to attend educational and training programs
relating to the theory and application of ADR on a regular basis, as
the FCA budget permits.
Based on the voluntary nature of ADR, all parties to a dispute must
agree to use an ADR procedure before it can be initiated.
Dated This 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Travel
FCA-PS-44
Effective Date: 8-JUL-11.
Effect on Previous Actions: Originally adopted 13-JUN-91; amended
12-NOV-92; amended by NV-11-15 (8-JUL-11).
Source of Authority: 5 U.S.C. 7351, 7353; 5 U.S.C. App. (Ethics
in Government Act of 1978); E.O. 12674, 54 FR 15159, 3 CFR, 1989
Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990
Comp., p. 306; 12 U.S.C. 2242 (Section 5.8 of the Farm Credit Act of
1971, as amended), 41 CFR part 301.
The FCA Board Hereby Adopts the Following Policy Statement
Members of the Farm Credit Administration (FCA or Agency) Board are
not subject to the same requirements regarding allowances for travel
and subsistence that generally apply to officers and employees of the
United States (Sec. 5.8 of the Farm Credit Act of 1971, as amended).
Nevertheless, it is the general policy of the FCA Board (Board) that
Board members will travel on official business in the most economical
fashion reasonable under the circumstances.
FCA Board members are subject to Federal laws, rules, and Executive
Orders relating to conflicts of interest that may result from accepting
gifts, including travel related expenses, from outside sources.
Generally, Board members may not accept anything of value from:
A person seeking official action from, doing business
with, or conducting activities regulated by the FCA, or
A person whose interests may be substantially affected by
the performance or nonperformance of our official duties.
Such persons are prohibited sources. (See Executive Order 12674, as
amended; 5 U.S.C. 7353; and 5 CFR part 2635, the Executive Branch-wide
standards of ethical conduct issued by the Office of Government
Ethics.) An organization is also a prohibited source if more than half
of its members are prohibited sources.
The gift rule under the standards of ethical conduct and the
Agency's gift acceptance authority at 31 U.S.C. 1353 outline the
limited circumstances in which government officials may accept gifts
and the payment of travel expenses from outside sources. Unless an
exception applies, ethics rules prevent Board members from accepting
gifts offered because of their official positions. Under no
circumstances may Board members accept anything of value in return for
being influenced in the performance of an official act. The aim of
these rules is to prevent an actual conflict of interest or the
appearance of a conflict and to uphold public confidence in the
integrity of the Government and the Agency.
Except as noted above, third parties may not pay for official
Agency expenditures. Because the Agency is responsible for the cost of
conducting official business, Board members will ensure that the Agency
is billed directly for travel expenses whenever possible (for example,
by using a Government issued credit card for travel expenses). On those
occasions when direct Agency payment is impossible or impractical (for
example, a large group business dinner arranged and paid for in advance
by the organizer), Board members will promptly notify the Agency of the
obligation and ensure that the payer is promptly reimbursed. Board
Members
[[Page 54640]]
recognize that it is important not to create the impression that a
third party, particularly a prohibited source, is paying for their
expenses.
Travel
Transportation
Board members will use less than first-class accommodations for all
modes of transportation except in circumstances where:
1. A Board member must use first-class accommodations because no
other space accommodations are reasonably available or where other
practical considerations exist (such as to accommodate a disability or
other special need);
2. Exceptional security circumstances require it;
3. The conduct of Agency business requires it; or
4. A Board member receives first-class travel benefits on an
unsolicited basis from a carrier (such as free first-class coupons) and
the benefit cannot be used by the Agency either in the present or the
future, cannot be redeemed for cash value, and does not require the
redemption of official miles. Under these circumstances, Board members
can use the first-class benefit for either official or personal travel.
Board members will use a commercial charter flight at Agency
expense only when no commercially scheduled flights are available in
time to meet the requirements of the travel or when the charter flight
would be more economical than a commercial flight. Board members will
avoid the use of private aircraft whenever possible and use them only
where commercial or charter flights are not reasonably available or
would impose undue hardships. When reporting travel expenses, Board
members must adequately justify the use of a commercial charter flight,
private aircraft, or first-class accommodations.
Lodging
When available and practical, Board members will book lodging at
the Government rate or another available reduced rate at hotels and
motels. When attending a convention, meeting, or other official
activity, Board members will ordinarily obtain lodging at the hotel or
motel holding the activity even if reduced rates are available
elsewhere. Board members may also book more than one room when
necessary for the conduct of official business on the premises.
The Agency will not ordinarily reimburse Board members for lodging
in the metropolitan Washington, DC, area. However, lodging may be
necessary to take full advantage of a conference.
Other Expenses for Official Activities
The FCA will reimburse Board members for the usual and reasonable
expenses incurred as a consequence of official activities in the
Washington, DC, metropolitan area and in other locations. The Agency
will allow the repayment of expenses for:
1. Transportation costs;
2. Meal costs;
3. Registration fees or other fees assessed for attendance or
participation;
4. The cost of miscellaneous supplies needed to participate in a
particular function or activity; and
5. Other costs we incur by participating in official activities.
The Agency will not allow reimbursement of expenses for official
activity incurred on behalf of other persons, including relatives,
except as provided in the Board policy on Official Function
(Representation and Reception) Expenses.
Form of Payment
Board members will arrange for official travel using the Agency's
travel management system whenever possible. Although Board members may
use cash to pay for official travel expenses and seek repayment from
the Agency afterwards, whenever possible, the preferred method of
payment will be the use of the Government-issued credit card for all
official travel expenses.
Receipts
When filing claims for reimbursement of travel expenses, Board
members will provide receipts for expenses as normally required of
other FCA employees under the Federal Travel Regulation, which
currently requires receipts for all lodging and travel expenses over
$75. However, failure to provide a receipt as normally required is not
grounds for denial of a claim. If a receipt is not available, Board
members will provide a statement explaining the nature and amount of
the expense and the reason for not having a receipt.
Combining Official Business Travel With Personal Activities
Although it is permissible to engage in personal activities while
on official travel, the purpose of the trip must always be the need to
conduct official business. The Agency pays for travel and related
expenses incurred in performing official business. However, the Agency
may not pay for personal expenses incurred while on official travel.
Therefore, it is important to record and allocate expenses carefully to
ensure that official expenses are clearly differentiated from personal
expenses. Proper handling of Agency expenses is always important, but
particularly so when engaging in personal activities while on official
Agency business.
The Board is aware that, in certain circumstances, engaging in
personal activities while on official travel could create an appearance
that personal activities, not official business, prompted the trip.
When Board members take a trip to conduct official business, it is
usually clear from the nature of the business that the trip is proper
and necessary. If there are concerns that personal activities during
the trip might suggest otherwise, Board members will consult the DAEO
to avoid a possible appearance of impropriety. The Board understands
that engaging in official travel that involves a given destination (for
example, our home state) on a disproportionate basis may raise
questions about whether the travel truly is necessary. Again, Board
members will consult with the DAEO about such concerns.
Dated This 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Examination Philosophy
FCA-PS-53
Effective Date: 08-JUL-11.
Effect on Previous Action: Responds to NV 93-04 (15-JAN-93) and
Amends FCA Policy Statement 53 dated 15-JUL-93; amended by NV-11-15 (8-
JUL-11).
Source of Authority: Sections 5.9 and 5.19 of the Farm Credit
Act of 1971, as amended.
The Farm Credit Administration (FCA or Agency) Board Hereby Adopts the
Following Policy Statement
This policy provides a general philosophy and direction for the
examination and oversight of the Farm Credit System (System).
The FCA Board provides for the examination and supervision of each
System institution in accordance with the Farm Credit Act of 1971, as
amended (the ``Act''). The Board fulfills this responsibility primarily
through the Office of Examination (OE). The FCA fulfills its
supervision and examination responsibilities for Farmer Mac, a separate
government-sponsored enterprise, through its Office of Secondary Market
Oversight. OE develops oversight plans, conducts examinations, monitors
the System's condition, current and emerging risks,
[[Page 54641]]
and develops supervisory strategies to ensure that the System operates
in a safe and sound manner and fulfills its public policy purpose. The
Act also provides that the Farm Credit System Insurance Corporation
(FCSIC) Board of Directors should utilize FCA examiners to conduct
examinations of System institutions, to the extent practicable.
Oversight and Examination
The FCA Board directs the maintenance of a ``risk-based'' approach
to oversight and examination for System institutions, which maximizes
OE's effectiveness and strategically addresses the System's safety and
soundness and compliance with laws and regulations. The amount of
examination resources devoted to a System institution and the scope of
an examination will depend on an institution's ability to identify and
manage its risks. Accordingly, oversight and examination efforts will
be heightened and accompanied by appropriate preventive, corrective, or
enforcement actions when institutions are unable or unwilling to
address material unsafe and unsound practices or comply with law and
regulations. This risk-based approach is critical to maintaining
shareholder, investor, and public confidence in the financial strength
and future viability of the System.
Examination Staff and Communications
The risk-based approach must promote effective communications with
System institutions. Examiners are an essential communication link with
System institutions through ongoing institution oversight, on-site
examinations, meetings with boards and management, and written reports
and correspondence. The examination program shall therefore maintain
adequately trained examiners who understand the unique risks and
opportunities of agriculture, maintain an appropriate level of
regulatory and financial industry experience and skills, and
communicate and work effectively with System institutions to ensure
they remain safe and sound and able to fulfill their public policy
purpose.
Reporting to the FCA Board
Annually, the Chief Examiner will provide the Board an annual
oversight and examination plan (plan) for approval. This plan will:
Assess the condition of and risks affecting the System at
large and in specific institutions;
Establish priorities and identify staffing, training, and
budgetary needs;
Include an examination schedule that ensures statutory
requirements are met; and,
Include operational objectives and strategies for meeting
the plan.
The Chief Examiner will report semi-annually to the Board on the
status of, and proposed adjustments to, the plan. The Chief Examiner
will also report quarterly on the current condition of the Farm Credit
System, emerging risks, and any necessary follow-up strategies.
Dated This 8th Day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Regulatory Philosophy
FCA-PS-59
Effective Date: 08-JUL-11.
Effect on Previous Action: Originally adopted BM-17-FEB-94-02 (see
59 FR 32189, June 22, 1994); see also 60 FR 26034, May 16, 1995;
amended by NV-11-15 (8-JUL-11).
Sources of Authority: Farm Credit Act of 1971, as amended; 12
U.S.C. 2001 et seq.
The Farm Credit Administration (FCA) Board Hereby Adopts the Following
Policy Statement
The FCA shall develop regulations consistent with its authorities
under the Farm Credit Act of 1971 (Act), as amended, and other relevant
statutes. It is the FCA Board's philosophy to (1) promulgate
regulations that are necessary to implement the law; (2) support
achievement of the Farm Credit System's (System) public mission; and
(3) ensure the System's safety and soundness.
The FCA Board will strive to create an environment that promotes
the confidence of customers and shareholders, investors, Congress, and
the public in the System's financial strength and future viability. The
FCA Board believes that safe and sound operations of System
institutions will instill: (a) Investor confidence in System debt
securities, which helps ensure that adequate funds are available at
reasonable rates; and, (b) shareholder/member confidence in each
cooperatively owned System institution by ensuring that sufficient
financial resources are maintained to support an adequate supply of
credit and other services to its shareholders/members in both good and
bad times.
FCA will give high priority to issues that enable the System to
more effectively accomplish its mission and to those issues that pose
significant risks to the successful operation of the System, with the
intent of ensuring an adequate and flexible flow of money into rural
areas. As such, the FCA Board intends to provide System institutions
with the flexibility consistent with changes in law, agriculture, and
rural America so institutions can offer high quality, reasonably priced
credit and related services to farmers, ranchers, their cooperatives,
rural residents, and other entities upon which farming operations are
dependent.
The strategies for accomplishing the Board's regulatory philosophy
are as follows:
1. We will develop regulations based on a reasoned determination
that benefits of any proposed regulation justify its cost.
2. We will focus our regulatory efforts on issues that address
identified risks in System institutions or enhance the ability of
System institutions to better meet the needs of agriculture and rural
America. Preambles to regulations will explain the rationale for the
regulatory approach adopted.
3. We will utilize diverse approaches to encourage public
participation in the development and review of regulatory proposals in
appropriate circumstances.
4. We will emphasize the cooperative principles of a farmer-owned
Government-sponsored enterprise by advancing regulatory proposals that
encourage farmer- and rancher-borrowers to participate in the
management, control, and ownership of their institutions.
5. We will work to eliminate unnecessary regulations that impair
the ability of the System to accomplish its mission to serve
agriculture and rural America and any regulations that are unduly
burdensome, costly, or not based on the law.
The details of how the FCA will implement these strategies will be
described in the Agency's Five-Year Strategic and Annual Performance
Plans and in its Unified Agenda.
Semi-annually, the Director of the Office of Regulatory Policy
(ORP) will provide the Board a proposed Unified Agenda for approval.
The Unified Agenda will describe the regulatory projects the Agency
plans to work on during the next 12 month period and apply the
principles and strategies reflected in this policy. Quarterly, the ORP
Director will report to the Board on the status of, and proposed
adjustments to, regulatory projects scheduled on the Unified Agenda.
Dated this 8th Day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
[[Page 54642]]
Equal Employment Opportunity Programs and Diversity
FCA-PS-62
Effective Date: 08-JUL-11.
Effect on Previous Action: Updates FCA-PS-62 [BM-13-JUL-06-03] (71
FR 46481, 8/14/2006) 7-13-06; amended by NV-11-15 (08-JUL-11).
Sources of Authority: Title VII of the Civil Rights Act of 1964,
as amended (42 U.S.C. 2000e et seq.); Age Discrimination in
Employment Act (29 U.S.C. 621 et seq.); Rehabilitation Act of 1973,
as amended (29 U.S.C. 721 et seq.); Equal Pay Act of 1974 (29 U.S.C.
206(d)); Civil Service Reform Act of 1978 (5 U.S.C. 3112);
Notification and Federal Employee Antidiscrimination and Retaliation
Act of 2002 (NO FEAR Act) (5 U.S.C. 2301); Genetic Information
Nondiscrimination Act of 2008 (42 U.S.C. 2000ff et seq.);); section
5.9 of the Farm Credit Act of 1971, as amended (12 U.S.C. 2243);
Executive Order 11478 (Equal Employment Opportunity in the Federal
Government), as amended by Executive Orders 13087 and 13152 to
include prohibitions on discrimination based on sexual orientation
and status as a parent; Executive Order 13166 (Improving Access to
Services for Persons with Limited English Proficiency); 29 CFR part
1614; Equal Employment Opportunity Commission Management Directives.
Purpose
The Farm Credit Administration (FCA or Agency) Board reaffirms its
commitment to Equal Employment Opportunity (EEO) and Diversity (EEOD)
and its belief that all FCA employees should be treated with dignity
and respect. The Board also provides guidance to Agency management and
staff for deciding and taking action in these critical areas.
Importance
Unquestionably, the employees who comprise the FCA are its most
important resource. The Board fully recognizes that the Agency draws
its strength from the dedication, experience, and diversity of its
employees. The Board is firmly committed to taking whatever steps are
needed to protect the rights of its staff and to carrying out programs
that foster the development of each employee's potential. We believe an
investment in efforts that strongly promote EEOD will prevent the
conflict and the high costs of correction for taking no, or inadequate,
action in these areas.
The Farm Credit Administration (FCA) Board Adopts the Following Policy
Statement
It is the policy of the FCA to prohibit discrimination in Agency
policies, program practices, and operations. Employees, applicants for
employment, and members of the public who seek to take part in FCA
programs, activities, and services will be treated fairly. FCA, under
the appropriate laws and regulations, will:
Ensure equal employment opportunity based on merit and
qualification, without discrimination because of race, color, religion,
sex, age, national origin, disability, sexual orientation, status as a
parent, genetic information, or participation in discrimination or
harassment complaint proceedings;
Provide for the prompt and fair consideration of
complaints of discrimination;
Make reasonable accommodations for qualified applicants
for employment and employees with physical or mental disabilities under
law;
Provide an environment free from harassment to all
employees;
Create and maintain an organizational culture that
recognizes, values, and supports employee and public diversity and
inclusion;
Develop objectives within the Agency's operation and
strategic planning process to meet the goals of EEOD and this policy;
Implement affirmative programs to carry out this policy
within the Agency; and
To the extent practicable, seek to encourage the Farm
Credit System to continue its efforts to promote and increase
diversity.
Diversity and Inclusion
The FCA intends to be a model employer. That is, as far as
possible, FCA will build and maintain a workforce that reflects the
rich diversity of individual differences evident throughout this
Nation. The Board views individual differences as complementary and
believes these differences enrich our organization. When individual
differences are respected, recognized, and valued, diversity becomes a
powerful force that can contribute to achieving superior results.
Therefore, we will create, maintain, and continuously improve on an
organizational culture that fully recognizes, values, and supports
employee diversity. The Board is committed to promoting and supporting
an inclusive environment that provides to all employees, individually
and collectively, the chance to work to their full potential in the
pursuit of the Agency's mission. We will provide everyone the
opportunity to develop to his or her fullest potential. When a barrier
to someone achieving this goal exists, we will strive to remove this
barrier.
Affirmative Employment
The Board reaffirms its commitment to ensuring FCA conducts all of
its employment practices in a nondiscriminatory manner. The Board
expects full cooperation and support from everyone associated with
recruitment, selection, development, and promotion to ensure such
actions are free of discrimination. All employees will be evaluated on
their EEOD achievements as part of their overall job performance.
Though staff commitment is important, the role of supervisors is
paramount to success. Agency supervisors must be coaches and are
responsible for helping all employees develop their talents and give
their best efforts in contributing to the mission of the FCA.
Workplace Harassment
It is the policy of the FCA to provide a work environment free from
unlawful discrimination in any form, and to protect all employees from
any form of harassment, either physical or verbal. The FCA will not
tolerate harassment in the workplace for any reason. The FCA also will
not tolerate retaliation against any employee for reporting harassment
or for aiding in any inquiry about reporting harassment.
Disabled Veterans Affirmative Action Program (DVAAP)
A disabled veteran is defined as someone who is entitled to
compensation under the laws administered by the Veterans Administration
or someone who was discharged or released from active duty because of a
service-connected disability.
The FCA is committed to increasing the representation of disabled
veterans within its organization. Our Nation owes a debt to those
veterans who served their country, especially those who were disabled
because of service. To honor these disabled veterans, the FCA shall
place emphasis on making vacancies known to and providing opportunities
for employing disabled veterans.
Responsibilities
The Chairman and Chief Executive Officer (CEO) is ultimately
responsible for developing and carrying out all EEOD requirements and
initiatives in accordance with laws and regulations to fulfill
diversity initiatives in approved program plans.
[[Page 54643]]
To help in fulfilling these responsibilities the CEO, or designee,
will fill the following positions:
EEO Director and, as appropriate, EEO Coordinator(s);
Special Emphasis Program Managers required by law or
regulation;
EEO Counselors; and
EEO Investigators.
Persons in these positions will perform their duties as specified
by the CEO or designee and as required by law or regulation. The Head
of each Agency office will make such persons available upon request
from the EEO Director.
The CEO or EEO Director may also establish standing committees to
deal with specific issues as they arise.
Dated this 8th day of July 2011.
By Order of the Board.
Dale L. Aultman,
Secretary to the Board.
Rules for the Transaction of Business of the Farm Credit Administration
Board
FCA-PS-64
Effective Date: 08-JUL-11.
Effect on Previous Action: Originally adopted by NV-94-05 (07-FEB-
94)[FCA-PS-58]; corrected by memo 09-FEB-94; amended by NV-95-03 (13-
JAN-95)[FCA-PS-64]; amended by NV-95-18 (20-MAR-95); amended by NV-95-
46 (9-AUG-95); amended by BM-24-OCT-95-02; amended by NV-95-69 (02-JAN-
96). See also 58 FR 6633, Feb. 1, 1993 and 59 FR 17537, Apr. 13, 1994;
reaffirmed by NV-96-22 (30-MAY-96); amended by NV-96-36 (26-AUG-96);
amended by NV-98-16 (8-MAY-98); amended by NV-99-09 (16-MAR-99);
amended by NV-99-25 (24-SEP-99); amended by NV-11-15 (8-JUL-11).
Source of Authority: Sections 5.8, 5.9, 5.10, 5.11 and 5.17 of
the Farm Credit Act of 1971, as amended.
The Farm Credit Administration (FCA) Board Hereby Adopts the Following
Policy Statement
Rules for the Transaction of Business of the Farm Credit Administration
Board
Purpose, Scope, and Definitions
Section 1. Purpose and Scope. These Rules adopted under Sec.
5.8(c) of the Farm Credit Act of 1971, as amended (Act), concerning the
transaction of business of the Farm Credit Administration (FCA) Board
(Board) supplement the statutes and regulations that govern the
procedures and practice of the Board (including, without limitation,
the Act, the Sunshine Act, and FCA regulations, 12 CFR 600 et seq.).
Unless otherwise provided in these Rules, or relevant statutes or
regulations, this Board will transact its business in accordance with
Robert's Rules of Order (Newly Revised) (most recent edition).
Section 2. Definitions, Reporting Relationships, and Performance
Appraisals.
``Act'' means the Farm Credit Act of 1971, as amended.
``Board Member'' means each of the three individuals
appointed by the President, by and with the advice and consent of the
Senate, to serve as Members of the Board, including the Chairman,
unless the context requires otherwise. Each Board Member appraises the
performance of his or her staff.
``Board Member Staff'' means those employees reporting
directly to a Board member such as executive or special assistants, and
who are organizationally located within the Office of the Board.
``Chairman'' means the Board Member designated by the
President to serve as Chairman of the Board. The Chairman also serves
as the Agency's Head and Chief Executive Officer (CEO). After
consultation with the other Board Members, the Chairman appraises the
performance of the Secretary, Equal Employment Opportunity Director,
Designated Agency Ethics Official, Chief Operating Officer, and all
Office Directors reporting directly to him or her.
``Designated Agency Ethics Official'' (DAEO) means an
employee of the FCA designated by the Head of the Agency to administer
the provisions of Title I of the Ethics in Government Act of 1978, to
coordinate and manage the Agency's ethics program, and to provide
liaison with the Office of Government Ethics on all aspects of FCA's
ethics program. The DAEO reports directly to the Chairman on the
Agency's ethics program.
``Equal Employment Opportunity (EEO) Director'' means an
employee of the FCA designated by the Head of the Agency to administer
the provisions of the Agency's EEO program as set forth in 29 CFR part
1614.
``General Counsel'' (GC) means an employee of the FCA who
serves as the chief legal officer of the Board. The GC reports to the
Chairman concerning administrative matters and to the FCA Board on
matters of Agency policy. By the nature of the position the GC, as
appropriate and necessary, maintains special advisory relationships in
confidence with the individual Board Members. The GC must also keep the
FCA Board fully informed of all litigation in which the Agency is
involved.
``Inspector General'' (IG) means an appointed head of the
Office of Inspector General (OIG), an independent component of the FCA,
established by and responsible for adhering to the IG Act of 1978, as
amended. The purpose of the IG is to promote economy, efficiency and
effectiveness, and to prevent and detect fraud and abuse in the
programs and operations of FCA.
``Office Director'' means an employee of the FCA serving
as head of an FCA Office, excluding the Inspector General unless
specified.
``Secretary'' means an employee of the FCA who serves as
Secretary to the Board as appointed by the Chairman. The Secretary, or
another FCA employee designated by the Chairman, serves as the
parliamentarian for the Board. The Secretary keeps permanent and
complete records and minutes of the acts and proceedings of the Board.
``Sunshine Act'' means the Government in the Sunshine Act,
5 U.S.C. 552b.
Amendments
Section 1. The business of the Board will be transacted in
accordance with these Rules, which may be amended from time to time:
Provided, however, that upon agreement of at least two Board Members
convened in a duly called meeting, the Rules may be waived in any
particular instance, except that action may be taken on items at a
Special Meeting only in accordance with part I, Article I, Sec. 3(b)
of this policy.
Section 2. These Rules may be changed or amended by the concurring
vote of at least two Board Members upon notice of the proposed change
or amendments having been given at least thirty days before such vote.
Section 3. These Rules will be reviewed by the Board at least every
five years or as needed.
Section 4. The Secretary to the Board is hereby delegated authority
to make technical, syntactical, and grammatical changes to any Board
Policy, provided a redlined complete copy of the policy(ies) is given
to each Board member that clearly details each change made at least 30
days prior to the effective date of the change. Any Board member may,
within the 30 day period, stop the proposed changes(s) and, if a Board
member so desires, put forth the matter for Board consideration.
Part I--Rules for the FCA Board Meetings
Article I. Board Meetings.
Article II. Board Action.
Article III. Board and Chairman Delegations.
[[Page 54644]]
Article I
Board Meetings
Section 1. Sunshine Act. All FCA Board meetings will be announced
and conducted in conformance with the Government in the Sunshine Act.
Section 2. Presiding Officer. The Chairman will preside at each
meeting. In the event the Chairman is unavailable, the other Board
Member from the Chairman's political party will preside. If there is no
other Board Member from the Chairman's political party, the Board
Member serving the longest on the Board will preside.
Section 3. Calls and Agenda.
(a) Regular Meeting. The Secretary, at the direction of the
Chairman, issues a call for items for the agenda to the other Board
Members and the Office Directors of FCA. The Secretary provides to the
Chairman a list of all the items submitted, including a list of
outstanding notational votes and matters voted ``not appropriate for
notational vote.'' The Chairman then establishes the agenda to be
posted on the Agency's public notice board or on its public Web site at
least 1 week before the meeting. The agenda will also be published in
the Federal Register at least 3 calendar days before the meeting date.
At each meeting, the Board votes to approve or amend the agenda
established by the Chairman. The Board may amend the agenda to add
items that the Board Members believe need to be considered at that
meeting.
(b) Special Meeting. Special meetings of the Board may be called:
(1) By the Chairman; or
(2) By the other two Board Members; or
(3) If there is at the time a vacancy on the Board, by a single
Board Member.
Any call for a Special Meeting will specify the business to be
transacted and state the place and time of such meeting. No business
will be brought before a Special Meeting that has not been specified in
the notice of call of such meeting without the unanimous consent of all
Board Members.
(c) Notice. The Secretary will give appropriate notice of any and
all meetings and make the call for Special meetings. Reasonable efforts
to provide such notice to Board Members will be made for all meetings
of the Board, but failure of notice will in no case invalidate a
meeting or any action taken during that meeting.
Section 4. Board Materials. The Secretary will distribute complete
Board Meeting Books to each Board Member and their staff at least three
full business days before any Regular Meeting. There may be instances
when the proposed Board meeting agenda approved by the Chairman may
need to be amended prior to a Board meeting to include items that
require Board action. In such instances the Secretary will update the
Board meeting books with the newly approved item(s) and make the
required Sunshine Act disclosures and notices as soon as possible.
However, unless agreed to by all Board Members, no vote may be taken on
an issue unless the necessary material has been provided to the Board
Members not less than twenty-four hours before the meeting to consider
such issue.
Section 5. Supporting Documentation. The Secretary will maintain
one copy of all Board Meeting Book material. All copies of the Board
Meeting Book material for Closed Sessions provided to anyone other than
the Secretary will be returned to the Secretary for disposal or
maintained in a secure location approved by the Secretary. One copy of
each Executive Summary provided to a Board Member will be provided to
and maintained by the Secretary. Board Meeting Books and Executive
Summaries are not part of the minutes of the Board unless expressly
incorporated therein.
Section 6. Telephone Conference. Any Board Member, including the
Chairman, may participate in a meeting of the Board through the use of
conference call telephone or similar equipment, provided that all
persons participating in the meeting can simultaneously speak to and
hear each other. Any Board Member so participating will be deemed
present at the meeting for all purposes.
Section 7. Public Attendance.
(a) Attendance. Members of the public may attend all meetings of
the Board except those meetings or portions of meetings that are closed
as directed by the Board, consistent with the Sunshine Act.
(b) Public Appearances before the Board. While members of the
public are invited and encouraged to attend Board meetings, no member
of the public has a right to speak in a Board meeting. However, the
Board may, in its sole discretion, permit a member of the public to
address the Board if he or she provides a written request and statement
covering the intended subject matter at least fifteen days before the
meeting.
Section 8. Minutes.
(a) Format. The format of minutes of the Board meetings, unless
otherwise stated in these rules or relevant statutes or regulations,
will comply with the most recent edition of Robert's Rules of Order and
the Sunshine Act. The minutes will clearly identify the date, time, and
place of the meeting, the type of meeting held, whether the meeting was
open or closed, the identity of Board Members present and, where
applicable, that they participated by telephone, and the identity of
the Secretary and the GC in attendance, or, in their absence, the names
of the persons who substituted for them. The minutes will contain a
separate paragraph for each subject matter and will note all main
motions or motions to bring a main motion before the Board, except any
that were withdrawn. The minutes will not contain any reference to
statements made unless a request is specifically made that a statement
be made a part of the minutes, or if required by the Sunshine Act. The
minutes of meetings will indicate the substance and disposition of any
notational votes completed since the last meeting. Except in the case
of a voice vote, the Secretary will record the vote of each Board
Member on a question or will note a unanimous consent. The Chairman and
the Secretary will sign the minutes of the Board meeting, indicating
the date of approval by the Board.
(b) Circulation. The Chairman and GC will review draft minutes. The
Secretary will circulate draft minutes to all Board Members at least
one week before their consideration at a Board Meeting. The Secretary
will place in all Board Meeting Books copies of the minutes of the
meetings of the Board to be voted on at a Board Meeting.
Article II
Board Action
Section 1. Affirmative Vote Required. Action on any matter requires
the affirmative vote of at least two Board Members, except as provided
in Article III, Sec. 1 of this part.
Section 2. Records of Board Action.
(a) Meetings. The vote of each Board Member, including the
Chairman, on a question voted on at a meeting will be recorded in the
minutes. The Chairman may, if there is no objection, call for a voice
vote on adjournment or other actions. If a voice vote is taken, its
result will be recorded in the minutes.
(b) Notational Votes. The Secretary will provide a summary of any
action taken by notational vote to the Board Members and Chairman and
the action taken will be reflected in the minutes of the next meeting
of the Board.
Section 3. Notational Voting.
(a) Nothing in these Rules precludes the transaction of business by
the circulation of written items (notational votes) to the Board
Members.
(b) The Board may use notational voting procedures to decide any
matter
[[Page 54645]]
that may come before it. Any Board Member may submit a motion to the
Secretary for distribution as a notational vote. However, in view of
the public policy of openness reflected in the Sunshine Act and the
desire to allow any Board Member to present viewpoints to the other
Board Members, any Board Member can veto the use of the notational
voting procedure for the consideration of any particular matter by
voting ``not appropriate for notational vote.''
(c) Upon submission of an item for notational vote, the Secretary
will provide each Board Member a complete package of all relevant
information and a notational vote ballot specifying the Board Member
making the motion, the motion itself, and the deadline for return of
the ballot. Within ten business days of receipt, or earlier if the
motion requires, each Board Member will act on the matter by returning
the ballot to the Secretary. Each Board Member is to indicate his/her
position in writing on the ballot in the following manner: (1) Approve,
(2) disapprove, (3) abstain, or (4) not appropriate for notational
vote.
(d) No partial concurrences or amendments are permitted; however, a
Board Member may suggest a revision to the proponent of the motion,
subject to compliance with the Sunshine Act, and the proponent may
withdraw his or her motion at any time before receipt by the Secretary
of all the ballots of all Board Members or the end of the time period
provided for on the ballot.
(e) A Board Member who is absent from the office may authorize a
staff member to initial the ballot for him/her, provided that the Board
Member has a designation memorandum on file with the Secretary.
Section 4. Board Records. The Secretary will maintain the records
of the Board including, without limitation, the minutes of the Board
meetings and notational votes.
Article III
Board and Chairman Delegations
Section 1. Two Vacancies/Authority to Act. In the event two Board
Members are not available by reason of recusal, resignation, temporary
or permanent incapacitation, or death, to perform the duties of their
offices, the Board hereby delegates to the remaining Board Member the
authority to exercise, in his/her discretion, the authorities of the
FCA granted to the Agency or the Board by statute, regulation or
otherwise, except those authorities which are non-delegable. This
delegation of authority does not include authority to establish general
policy and promulgate rules and regulations, or any delegation
expressly prohibited by statute. This delegation will include but is
not limited to the exercise of the following powers:
(a) The approval of actions of the Farm Credit System (System)
institutions that are required by statute, regulations or otherwise to
be approved by the FCA or its Board;
(b) The exercise of all powers of enforcement granted to the FCA by
statute, including but not limited to, the authorities contained in 12
U.S.C. 2154, 2154a, 2183, 2202a, and 2261-2274; and
(c) Any actions or approvals required in connection with the
conduct of a receivership or conservatorship of a System institution.
Authorities delegated by this Section may be re-delegated, in
writing, at the discretion of the remaining Board Member, to other FCA
officers or employees.
Section 2. National Security Emergencies. Pursuant to Executive
Order 12656, as amended, in the event of a national security emergency,
if the Chairman is unable to perform his or her duties for any reason,
the Chairman, at his or her sole discretion, delegates to the following
individuals, in the order mentioned and subject to being available, the
authority to exercise and perform all the functions, powers, authority
and duties of the Chairman in an acting capacity until such time as
either the Chairman can resume his/her position or, if no longer able
to serve as Chairman, the President of the United States designates a
new Chairman:
(a) Member of the Board of the Chairman's political party;
(b) If there is no other Board Member from the Chairman's political
party, the Board Member serving the longest on the Board;
(c) General Counsel.
The Chairman or Acting Chairman will ensure that FCA has an
alternative location for its headquarters functions in the event a
national security emergency renders FCA's headquarters inoperative. The
Chairman or Acting Chairman may establish such branch office or offices
of the FCA as are necessary to coordinate its operations with those of
other government agencies.
Section 3. Individual Assignments. To the extent consistent with
law, the Board or the Chairman may offer another Member of the Board a
special assignment and define the duties incident thereto, and the
Chairman may delegate to another Board Member certain duties and
responsibilities of the Chairman.
Section 4. Other Delegations. The FCA Board may delegate such
authorities as it deems necessary and appropriate. Such delegations are
included in Attachments A and B to this policy.
Part II--Board and Staff Governance
Article I. Board Governance.
Article II. Staff Governance.
Article I
Board Governance
Section 1. General. The purpose of this part is to ensure the
efficient operation of the FCA in light of the various authorities and
operational responsibilities of Board and the FCA Chairman and CEO.
The Board recognizes that for the Agency to run efficiently, the
Chairman/CEO must have sufficient latitude and discretion to direct the
implementation of Board policies and run the Agency's day-to-day
affairs. Notwithstanding such latitude, the other Board Members must
have access to staff and must be able to request information from staff
that they find necessary to fulfill their policy- and rulemaking
responsibilities under the Act.
The Chairman/CEO is always free to bring to the Board issues that
do not require Board action. Conversely, the Board may involve itself
in operational matters ordinarily reserved for the Chairman/CEO if it
concludes that they rise to the level of policy due to their
sensitivity, seriousness, or controversial nature.
Section 2. Board Authorities. The Board, acting as a unit, must
manage, administer, and establish policies for the FCA. The Board
specifically approves the rules and regulations implementing the Act;
provides for the examination, enforcement, and regulation of System
institutions; provides for the performance of all the powers,
functions, and duties vested in the FCA; and requires any reports
deemed necessary from System institutions. The Board also adopts the
FCA seal. Each Board Member has the authority to appoint and direct
regular, full-time staff in his or her immediate office.
Section 3. Chairman Authorities. The Chairman, in carrying out his
or her responsibilities, is governed by the general policies adopted by
the Board and by such regulatory decisions, findings, and policy
determinations as the Board may by law be authorized to make.
The Chairman, in carrying out policies as directed by the Board,
acts as spokesperson for the Board and represents the Board and the FCA
in official relations within the Federal
[[Page 54646]]
Government. Under policies adopted by the Board, the Chairman must
consult on a regular basis with the Secretary of the Treasury
concerning the exercise of the System's powers under Sec. 4.2 of the
Act; the Board of Governors of the Federal Reserve System concerning
the effect of System lending activities on national monetary policy;
and the Secretary of Agriculture concerning the effect of System
policies on farmer, ranchers, and the agricultural economy. As to third
persons, all acts of the Chairman will be conclusively presumed to be
in compliance with general policies and regulatory decisions, findings,
and determinations of the Board.
The Chairman enforces the rules, regulations, and orders of the
Board. The Chairman designates attorneys to represent the Agency in any
civil proceeding or civil action brought in connection with the
administration of conservatorships and receiverships and in civil
proceedings or civil actions when so authorized by the Attorney General
under provisions of title 28 of the United States Code. The Chairman,
subject to the approval of the Board, may establish one or more
advisory committees in accordance with the Federal Advisory Committee
Act.
The Chairman may not delegate any of the foregoing powers without
prior Board approval.
The Chairman also exercises those powers conferred on the Head of
the Agency, including the power to make certain designations.
Section 4. CEO Authorities. The Chairman of the FCA Board is also
the Agency's CEO. The CEO, in carrying out his or her responsibilities,
directs the implementation of policies and regulations adopted by the
Board and, after consultation with the Board, executes the
administrative functions and duties of the FCA.
``Consultation with the Board'' is achieved when the Chairman/CEO
makes a good faith attempt to seek advice, guidance, and input from the
Board before taking significant action on matters related to the
execution of administrative functions or duties.
The Chairman as CEO runs the day-to-day operations of the Agency.
This includes the power to implement the policies and regulations
adopted by the Board, appoint personnel as necessary to carry out
Agency functions, set staff pay and benefits and direct staff. As
provided in Sec. 5.11(b) of the Act, the Chairman/CEO appoints heads
of major administrative divisions subject to the approval of the Board.
In accordance with the IG Act, the IG is appointed by the FCA Board.
The Chairman as CEO may designate to other FCA officers and
employees the authority to exercise and perform those powers necessary
for the day-to-day management of the Agency.
Article II
Staff Governance
Section 1. Authority over Staff. The Chairman/CEO has authority to
hire the personnel necessary to carry out the mission of the Agency and
to direct staff, except that each Board Member is entitled to appoint
and direct his or her regular, full-time staff within the constraints
of the adopted budget for the Office of the Board.
Subject to the approval of the Board, the Chairman/CEO appoints and
removes the ``heads of major administrative divisions.'' The Board
defines the ``heads of major administrative divisions'' as all Office
Directors who are career appointees. The Board must approve the
conversion of an existing career position to a non-career (political)
position. In accordance with the IG Act, a removal of the IG may only
be made upon the written concurrence of a \2/3\ majority of the FCA
Board.
Section 2. Organization Chart. Consistent with its mandate to
approve regulations and appointments outlined above, the Board approves
the FCA organizational chart down through the Office level along with
relevant functional statements for each Office. Authority to make
organizational changes within any division rests with the Chairman/CEO,
and may be delegated to the Chief Operating Officer or Office
Directors. In accordance with the IG Act, the IG has personnel
authority for the Office of the Inspector General.
Part III--Board Operations
Article I. Committee and Financial Operations, and Other Activities.
Article II. Board Member Travel and Related Expenses.
Article I
Committee and Financial Operations, and Other Activities
Section 1. Committee Operations. To assist the Board in exercising
its authority for oversight and approval of the Strategic Plan, the
formulation of regulations and policy, and the monitoring and
assessment of risk, the Board directs the formation of three
committees.
Each Committee Chair will be designated by the Chairman. Each
committee will be comprised of the Board Members' Executive Assistants
and such Agency staff as determined by the Committee Chair. The
Committee Chair will designate a Coordinator with expertise in, or
significant accountability for, the activities of the committee.
Committees will meet as often as determined by the Committee Chair to
achieve committee objectives. The Chairman may also approve the use of
external consultants to assist the committees on an as-needed basis.
(a) Strategic Planning Committee. The objective of this committee
is to provide a forum for Board input on (1) the development of, and
periodic updates to, the Strategic Plan, and (2) changes in processes
and procedures that will improve the quality of this key Agency
document.
(b) Regulation and Policy Development Committee. The objective of
this committee is to provide a forum to (1) obtain Board input
throughout the entire process of developing, modifying, or eliminating
individual regulations, (2) discuss changes in processes and procedures
that will improve the Agency's regulation and policy development
process, and (3) foster open discussion during the development and
periodic update of the Agency's regulatory agenda.
(c) Risk Committee. The objective of this committee is to provide a
forum to (1) facilitate Board awareness of risks to the ongoing mission
fulfillment and safety and soundness of the System and Farmer Mac, (2)
ensure an integrated and coordinated Agency risk analysis process that
effectively uses information from a wide variety of internal and
external sources, and (3) foster open discussion about risks to the
System and Farmer Mac and the implications of such risks for future
Agency operations.
Section 2. Financial Operations.
(a) Budget Approval. The Chairman, consistent with the provisions
of the Act, other law and regulations, and applicable policy, oversees
the development of budget proposals and causes the expenditure of funds
within approved budgets to meet the Agency's mission and objectives.
The Board approves an object class budget for the Agency as a whole and
a budget for each office. Any reallocation of funds in excess of
$100,000 requires FCA Board approval. Reallocation of funds of $100,000
or less requires the Chairman's approval (or that of the Chairman's
designee). The Chief Financial Officer (CFO) will provide a monthly
report to the Board on all budgetary reallocations that occur after the
FCA Board approves a fiscal year budget. The CFO will also provide a
quarterly budget report to the Board that discusses actual performance
of the budgeted items. The quarterly
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report may be presented during regular Board meetings or during a Board
briefing.
The IG, in accordance with the IG Act, transmits a budget estimate
specifying an aggregate amount for OIG operations, OIG training needs,
and amounts for support of the Council of the Inspectors General on
Integrity and Efficiency.
Section 3. Other Board Operations.
(a) Audit Resolution Process. The Chairman is responsible for
overseeing the audit resolution process and, through a designee, for
audit resolution implementation and follow-up. However, the Chairman
must obtain Board approval of audit resolutions where the issue would
normally require Board action. The Inspector General and Audit Follow-
up Official will report to the Board the st