Farm Credit Administration Board Policy Statements, 67277-67285 [2015-27893]

Agencies

• Farm Credit Administration

[Federal Register Volume 80, Number 211 (Monday, November 2, 2015)]
[Rules and Regulations]
[Pages 67277-67285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27893]


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FARM CREDIT ADMINISTRATION

12 CFR Chapter VI


Farm Credit Administration Board Policy Statements

AGENCY: Farm Credit Administration.

ACTION: Notice of policy statements and index.

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SUMMARY: The Farm Credit Administration (FCA), as part of its annual 
public notification process, is publishing for notice an index of the 
18 Board policy statements currently in existence. Most of the policy 
statements remain unchanged since our last Federal Register notice on 
October 22, 2014 (79 FR 63033), except for three as discussed below on 
Equal Employment Opportunity and Diversity, Travel, and Rules for the 
Transaction of Business of the FCA Board.

DATES: November 2, 2015.

FOR FURTHER INFORMATION CONTACT: 
Dale L. Aultman, Secretary to Board, Farm Credit Administration, 1501 
Farm Credit Drive, McLean Virginia 22102-5090, (703) 883-4009, TTY 
(703) 883-4056;
or
Mary Alice Donner, Senior 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 18 FCA Board policy statements 
is set forth below. FCA Board policy statements may be viewed online at 
www.fca.gov/handbook.nsf.
    On August 18, 2015, the FCA Board updated FCA-PS-62 on, ``Equal 
Employment Opportunity and Diversity.'' The policy was published in the 
Federal Register on August 26, 2015 (80 FR 51806).
    On August 31, 2015, the FCA Board updated FCA-PS-44 on, ``Travel'' 
and FCA-PS-64 on, ``Rules for the Transaction of Business of the Farm 
Credit Administration Board.'' Those were not previously published in 
the Federal Register and are set forth below in their entirety.

FCA Board Policy Statements

FCA-PS-34 Disclosure of the Issuance and Termination of Enforcement 
Documents
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-67 Nondiscrimination on the Basis of Disability in Agency 
Programs and Activities
FCA-PS-68 FCS Building Association Management Operations Policies and 
Practices

[[Page 67278]]

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
FCA-PS-80 Cooperative Operating Philosophy--Serving the Members of Farm 
Credit System Institutions
FCA-PS-81 Ethics, Independence, Arm's-Length Role, Ex Parte 
Communications and Open Government

Travel

FCA-PS-44

    EFFECTIVE DATE: August 31, 2015
    EFFECT ON PREVIOUS ACTIONS: Originally adopted 13-JUN-91; amended 
12-NOV-92; amended 08-JUL-11; amended 31-AUG-15.
    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. Sec.  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 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 unless they have relocated in 
a holdover status. 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

[[Page 67279]]

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 31st DAY OF AUGUST, 2015
    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: August 31, 2015
    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); 
amended by NV-15-13 (31-AUG-15).
    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 part 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.

[[Page 67280]]

    ``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.
ARTICLE I

BOARD MEETINGS

    Section 1. Sunshine Act. All FCA Board meetings will be announced 
and conducted in conformance with the Government in 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

[[Page 67281]]

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 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.

[[Page 67282]]

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 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

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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.
    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 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 Semi-Annual 
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 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, provided such responses contain no

[[Page 67284]]

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 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

Relocation to the Agency

    Board Members will be reimbursed by FCA for travel and 
transportation expenses incurred in connection with relocation to their 
first official duty station. Reasonable expenses for which 
reimbursement, as approved by the Chairman/CEO, will be allowed 
generally include, but are not limited to the following:
    (a) Travel and per diem for the Board Member.
    (b) Travel, but not per diem, for immediate family of the Board 
Member.
    (c) Mileage if privately owned vehicle is used in travel; and
    (d) Transportation and temporary storage of household goods.
    Each relocation will be considered separately and all rates and 
allowances will be determined at the time of authorization, 
notwithstanding the limitations of 5 U.S.C., Chapter 57 and the Federal 
Travel Regulations, as provided in Sec.  5.8(d) of the Act. 
Reimbursement of additional expenses may be authorized if warranted by 
specific circumstances. Board Members will be issued a specific prior 
written authorization by the Chief Operating Officer detailing the 
expenses that may be reimbursed.

Relocation in Holdover Status

    It is in the Agency's best interest to maintain a full complement 
of Board Members. The Agency is sensitive to the uncertainty and extra 
expenses often incurred by Board Members that serve past the expiration 
of their official appointment and prior to their successor's 
appointment. In accordance with Sec.  5.8(b) of the Act, a Board Member 
``shall continue to serve as such after the expiration of the member's 
term until a successor has been appointed and qualified.'' To that end, 
a Board Member, not serving as FCA Chairman, in a holdover status may 
prefer to perform their official duties from another U.S. location 
outside of the Washington, DC area, recognizing that they still have an 
obligation to devote their full time and attention to the business of 
the Board as required by Sec.  5.8(d) of the Act. In such a case, the 
Board Member's duty station may be changed from FCA headquarters to a 
new location. Such a Board Member will be reimbursed for regularly 
scheduled official travel to headquarters upon authorization by the 
Chief Operating Officer. For other official travel, Board Members that 
serve in continuation will be reimbursed subject to the Board travel 
policy outlined in PS-44.
    In addition, Board Members serving as a holdover who change their 
duty station will be reimbursed by FCA for travel and transportation 
expenses incurred in connection with relocation to their new location. 
Reimbursement for reasonable expenses, as approved by the Chief 
Operating Officer, will be limited to:
    (a) Travel and per diem for the Board Member.
    (b) Travel, but not per diem, for immediate family of the Board 
Member.
    (c) Mileage if privately owned vehicle is used in travel; and
    (d) Transportation and temporary storage of household goods.
    Board Members will be issued a specific prior written authorization 
by the Chief Operating Officer detailing the expenses that may be 
reimbursed.
    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

[[Page 67285]]

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.
    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 31st DAY OF AUGUST, 2015
    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.
    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 Sec.  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 precedent-setting 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 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.

    Dated: October 27, 2015.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2015-27893 Filed 10-30-15; 8:45 am]
BILLING CODE 6705-01-P