USDA IG: 'Federal Crop Insurance Corporation/Risk Management Agency's Financial Statements for FY 2022 & 2021'

WASHINGTON, Nov. 17 (TNSrep) -- The Agriculture Inspector General issued the following audit report (No. 05401-0014-11) on Nov. 9, 2022, entitled "Federal Crop Insurance Corporation/Risk Management Agency's Financial Statements for Fiscal 2022 & 2021."

Here are excerpts:

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OBJECTIVE

The objectives of our audits were to review the FCIC/RMA's financial statements for fiscal years 2022 and 2021. Specifically, we determined whether: (1) the financial statements present information fairly, in all material respects, and in accordance with generally accepted accounting principles; (2) FCIC/RMA met the internal control objectives over financial reporting; (3) the agency complied with applicable laws and regulations; and (4) information presented was materially consistent with the financial statements.

REVIEWED

We conducted our audits on information relevant to the audit objectives as obtained through systems or from officials and personnel located at the RMA and Farm Production and Conservation Business Center offices in Kansas City, Missouri.

RECOMMENDS

This report does not contain recommendations.

WHAT OIG FOUND

The Federal Crop Insurance Corporation/Risk Management Agency (FCIC/RMA) received an unmodified opinion from the Office of Inspector General's (OIG) audits of FCIC/RMA's financial statements. We determined that the agency's financial statements present fairly FCIC/RMA's financial position as of September 30, 2022 and 2021, in all material respects, and were prepared in accordance with United States of America generally accepted accounting principles. This includes the agency's net costs, changes in net position, and statements of budgetary resources and related notes to the financial statements.

Our consideration of FCIC/RMA's internal control over financial reporting identified no material weaknesses and our consideration of compliance with laws and regulations noted an instance of noncompliance with the Payment Integrity Information Act of 2019.

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TO: Marcia Bunger, Administrator, Risk Management Agency; Margo E. Erny, Chief Financial Officer, Farm Production and Conservation

ATTN: Kenneth Hill, Performance, Accountability, and Risk Division Director Farm Production and Conservation Business Center; Gary Weishaar, Branch Chief for the External Audits and Investigations, Farm Production and Conservation Business Center

FROM: Steve Rickrode, Acting Assistant Inspector General for Audit

SUBJECT: Federal Crop Insurance Corporation/Risk Management Agency's Financial Statements for Fiscal Years 2022 and 2021

This report presents the results of our audits of Federal Crop Insurance Corporation/Risk Management Agency's (FCIC/RMA) financial statements for the fiscal years ending September 30, 2022, and 2021. This report contains an unmodified opinion on the financial statements, as well as the results of our assessments of FCIC/RMA's internal control over financial reporting and compliance with laws and regulations. Your response is included in its entirety in Exhibit A.

We appreciate the courtesies and cooperation extended to us by members of your staff during our audit fieldwork and subsequent discussions. This report contains publicly available information and will be posted in its entirety to our website (https://usdaoig.oversight.gov) in the near future.

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Table of Contents

Independent Auditor's Report ... 1

Report on the Financial Statements ... 1

Opinion ... 1

Basis for Opinion ... 1

Emphasis of Matter ... 1

Other Matter ... 2

Report on Internal Control Over Financial Reporting ... 4

Report on Compliance with Laws, Regulations, Contracts, and Grant

Agreements ... 5

Abbreviations ... 7

Exhibit A: Agency's Response ... 9

Exhibit B: Financial Statements ... 11

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The report is posted at: at https://www.oversight.gov/sites/default/files/oig-reports/USDAOIG/05401-0014-11508FOIA.pdf