[Federal Register Volume 59, Number 71 (Wednesday, April 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8905]


[[Page Unknown]]

[Federal Register: April 13, 1994]


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FARM CREDIT ADMINISTRATION

[NV-94-05 (07-FEB-94)]

 

Policy Statement on Rules for Transaction of Business and 
Operational Responsibilities of the Farm Credit Administration Board

AGENCY: Farm Credit Administration.

ACTION: Policy statement.

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SUMMARY: On February 7, 1994, the Farm Credit Administration Board 
(Board) adopted a policy statement concerning rules for transaction of 
business and operational responsibilities of the Board. This document 
consolidates in one location the substance of several separate 
documents. The Board Members wanted wide distribution of this document 
because of its importance in determining which matters should be 
brought to the Board Members' attention, the manner in which different 
matters should be brought to their attention, and the basic procedures 
for handling certain items.

EFFECTIVE DATE: February 7, 1994.

FOR FURTHER INFORMATION CONTACT:
Curtis M. Anderson, Secretary to the Farm Credit Administration Board, 
Farm Credit Administration, McLean, Virginia 22102-5090, (703) 883-
4003, TDD (703) 883-4444.

SUPPLEMENTARY INFORMATION: The text of the Board's policy statement 
concerning rules for transaction of business and operational 
responsibilities of the Board is set forth below in its entirety:

Policy Statement on Rules for Transaction of Business and Operational 
Responsibilities of the Farm Credit Administration Board

No. NV-94-05

FCA-PS-58

    Effective Date: Upon adoption.
    Effect on Previous Action: Supersedes, rescinds, and replaces the 
following:
    FCA-PS-32 [BM-13-DEC-90-04]; FCA-PS-33 [BM-13-JUN-91-04]; FCA-PS-36 
[BM-13-FEB-92-04]; FCA-PS-40; [BM-28-APR-92-05]; FCA-PS-42 [NV-92-24 
(10-JUL-92)]; FCA-PS-45 [BM-14-JAN-93-03]; FCA-PS-46 [BM-29-JAN-93-01]; 
FCA-PS-47 [NV-93-08 (04-FEB-93)]; FCA-PS-52 NV-93-44 (08-JUL-93)]; FCA-
PS-55 [NV-93-66 (30-NOV-93)]; FCA-PS-54 [NV-93-58 (16-SEP-93)]; FCA 
ORDER NO. 870 (04-NOV-86); FCA ORDER NO. 879 (26-OCT-87); FCA ORDER NO. 
911 (28-OCT-92).

    Source of Authority: The Farm Credit Act of 1971, as amended, 
including Sections 5.8 (c), (d), 5.9, 5.14, and 5.19; 12 U.S.C. 2001 
et seq., 2242 (c), (d), 2243, 2249, and 2254.

Article I

Purpose and Table of Contents

Section 1. Purpose
    These Rules for the Transaction of Business (``Rules'') of the Farm 
Credit Administration (``FCA'') Board (``Board'') are adopted by the 
Board to supplement the statutes and regulations which govern the 
procedures and practice of the Board (see The Farm Credit Act of 1971, 
as amended, and 12 CFR Part 600 et seq.), and shall constitute the 
official rules of the Board for purposes of section 5.8(c) of the Farm 
Credit Act of 1971, as amended.

Section 2. Table of Contents

Article I. Purpose and Table of Contents.
Article II. Board Organization.
Article III. Voting.
Article IV. Minutes.
Article V. Board Meetings.
Article VI. Public Appearances and Attendance.
Article VII. Board Operational Responsibilities.
Article VIII. Board Member Expenses and Related Compensation.
Article IX. Amendments.

Article II

Board Organization

Section 1. Secretary to the Board
    The Chairman of the Board (``Chairman'') shall appoint a Secretary 
to the Board (``Secretary'') who shall be an employee of the FCA. The 
Secretary shall keep permanent and complete records and minutes of the 
acts and proceedings of the Board. The Secretary shall be the 
parliamentarian for the Board.
Section 2. General Counsel
    The General Counsel of the FCA shall serve as the chief legal 
officer of the Board.
Section 3. Individual Assignments
    To the extent consistent with law, the Board or the Chairman may 
offer individual Members of the Board (``Member(s)'') special 
assignments and define the duties incident thereto, and the Chairman 
may delegate to individual Members certain duties and responsibilities 
of the Chairman.
Section 4. Two Vacancies/Authority to Act
    In the event two (2) Members are not available by reason of 
resignation, temporary or permanent incapacitation, or death, to 
perform the duties of their offices, the Board hereby delegates to the 
remaining Member the authority to exercise, in his/her discretion, any 
and all 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 regulations, or 
any delegation expressly prohibited by statute. This delegation shall 
include, but shall not be limited to, the exercise of the following 
powers:
    (a) The approval of any and all actions of the Farm Credit 
institutions as 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 Farm Credit 
institution.
    Authorities delegated by this Section may be redelegated, in 
writing, at the discretion of the remaining Member, to other FCA 
officers or employees.
Section 5. National Security Emergencies
    Pursuant to Executive Order 12656, in the event of a national 
security emergency, if the Chairman is unable to perform his or her 
duties for any reason, the following individuals, in the order 
mentioned and subject to being available, are authorized to exercise 
and perform all the functions, powers, authority and duties of the 
Office of Chairman:
    (a) Member of the Board of the Chairman's party;
    (b) Member of the Board of the Minority party;
    (c) Executive Assistant and Senior Advisor to the Chairman;
    (d) Director, Office of Congressional and Public Affairs;
    (e) Secretary to the Board;
    (f) Chief Operating Officer;
    (g) General Counsel;
    (h) Chief Examiner, Office of Examination;
    (i) Regional Director, Western Region, Office of Examination.
    The Chairman shall 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.

Article III

Voting

Section 1. Affirmative Vote Required
    Action on any matter shall require the affirmative vote of at least 
two (2) Members, except as provided in Article II, Section 4.
Section 2. Votes To Be Recorded
    The vote of each Member, including the Chairman, on a question 
shall be recorded in the minutes.
Section 3. Notational Voting
    (a) Nothing in these Rules shall preclude the transaction of 
business by the circulation of written items (``notational votes'') to 
the Members, provided all Members participate, in writing, in the 
disposition of the item pursuant to Article III, section 3(c).
    (b) Matters that may be decided by notational vote. The Board may 
consider any matter that comes before it by use of notational voting 
procedures; however, it is best used only for routine and 
noncontroversial items. Any Member may submit an item to the Secretary 
for distribution as a notational vote.
    (c) Notational vote ballots and material. Upon submission of an 
item for notational vote, the Secretary shall provide each Member a 
complete package of all relevant information and a notational vote 
ballot sheet (indicating the Member making the motion, the substance of 
the motion, and the deadline for return of the vote) upon which each 
Member can indicate his/her position by voting in the following manner:
    (1) To approve;
    (2) To disapprove;
    (3) To abstain; or
    (4) Not appropriate for notational vote.
    (d) Modifications, amendments, and withdrawals. No partial 
concurrences or amendments are appropriate; however, a Member may 
suggest a revision to the proponent, subject to compliance with the 
Government in the Sunshine Act, and the proponent may withdraw his 
motion at any time prior to receipt by the Secretary of the votes of 
all Members or the end of the time period provided for on the ballot 
sheet.
    (e) Time limits to vote. Within ten (10) business days of receipt, 
or earlier if circumstances require, each Member shall act on the 
matter by returning the ballot sheet. Failure to return a ballot sheet 
by the date requested on the sheet will result in the vote being 
recorded as ``not voting'', which causes the motion to fail pursuant to 
Article III, section 3(a).
    (f) Veto of notational voting procedure. In view of the public 
policy of openness reflected in the Government in the Sunshine Act and 
the desire to allow any Member to present viewpoints to the other 
Members, any Member can veto the use of the notational voting procedure 
for the consideration of any particular matter by voting ``not 
appropriate for notational vote''.
    (g) Disclosure of results. A summary of any action taken by 
notational vote shall be provided by the Secretary to the Members, 
Chief Executive Officer, and Chief Operating Officer, and shall be 
reflected in the appropriate minutes of the Board. Public disclosure is 
determined by the provisions of the Freedom of Information Act (5 
U.S.C. 552).
    (h) Authority to designate staff to initial. If the conduct of 
agency business so requires, and the Member has been apprised of the 
contents of any notational vote, a Member who is absent from the office 
may authorize a staff member to initial the item for him/her, as long 
as the Member has a designation memorandum on file with the Secretary.
Section 4. Telephone Conference
    Any Member 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 Member so participating shall be deemed 
present at the meeting for all purposes.

Article IV

Minutes

Section 1. Format
    The format of minutes of the Board Meetings, unless otherwise 
stated in these rules, or relevant statutes or regulations, shall 
comply with Robert's Rules of Order (Newly Revised) and the Government 
in the Sunshine Act.
    (a) The minutes shall clearly identify the date, time, and place of 
the meeting, the type of meeting held, the identity of Members present, 
and where applicable that they participated by telephone, and the 
identity of the Secretary and the General Counsel present, or, in their 
absence, the names of the persons who substituted for them.
    (b) The minutes shall contain a separate paragraph for each subject 
matter, and shall note all main motions or motions to bring a main 
motion before the assembly, except any that were withdrawn.
    (c) The minutes shall not contain any reference to statements made 
unless a request is specifically made that a statement be made a part 
of the record, or if required by the Government in the Sunshine Act.
    (d) The minutes of Regular Meetings shall indicate the substance 
and disposition of any notational votes completed since the last 
Regular Meeting of the Board.
    (e) The vote of each Member on a question shall be recorded or the 
Secretary will note a unanimous consent.
    (f) The minutes of the Board shall be signed by the Chairman and 
the Secretary, indicating the date of approval by the Board.
Section 2. Circulation
    (a) Draft minutes shall be reviewed by the Chairman and General 
Counsel.
    (b) Minutes shall be circulated to all Members one (1) week prior 
to their consideration at a Board Meeting.
    (c) Copies of the minutes of the Meetings of the Board (Open 
Session) to be voted on at a Board Meeting shall be placed in all Board 
Briefing Books.
    (d) Copies of the minutes of the Meetings of the Board (Closed 
Session) to be voted on at a Board Meeting shall be placed only in the 
Board Briefing Books of the Members, the Secretary, and the General 
Counsel.
Section 3. Supporting Documentation
    (a) Board briefing books. One copy of all Board Briefing Book 
material shall be maintained by the Secretary. All other copies of the 
Board Briefing Book material for Closed Sessions shall be returned to 
the Secretary for disposal or maintained in a secure location approved 
by the Secretary.
    (b) Executive summaries. One copy of each Executive Summary 
provided to any Member shall be provided to and maintained by the 
Secretary.

Article V

Board Meetings

Section 1. Presiding Officer
    The Chairman shall preside at each meeting. In the event the 
Chairman is unavailable, the Member from the Chairman's political party 
shall preside.
Section 2. Order of Business
    The agenda for each meeting shall be substantially in the following 
order:

I. Open Session
    A. Approval of Minutes
    B. Reports
    C. Special Orders
    D. Unfinished Business and General Orders
    1. Policy Statements
    2. Regulations
    3. Other
    E. New Business
    1. Policy Statements
    2. Regulations
    3. Other
II. Closed Session
    A. Reports
    B. Special Orders
    C. Unfinished Business and General Orders
    D. New Business
III. Adjournment
Section 3. Calls and Agenda
    (a) Regular meeting. The Secretary, at the direction of the 
Chairman, shall issue a call for items for the agenda to each Member, 
the Chief Operating Officer, and the Office Directors of FCA. The 
Secretary shall provide 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 shall then 
establish the agenda to be published in the Federal Register.
    (b) Special meeting. Special Meetings of the Board may be called:
    (1) By the Chairman; or
    (2) By any two Members; or
    (3) If there is at the time a vacancy on the Board, by any Member.
    Any call for a Special Meeting shall set forth the business to be 
transacted and shall state the place and time of such meeting. Except 
with the unanimous consent of all Members, no business shall be brought 
before a Special Meeting that has not been specified in the notice of 
call of such meeting.
    (c) Notice. The Secretary shall give appropriate notice on any and 
all meetings and make the call for Special Meetings. Reasonable efforts 
to provide such notice to Members shall be made for all meetings of the 
Board, but failure of notice shall in no case invalidate a meeting.
Section 4. Board Materials
    Complete Board Briefing Books shall be distributed to each member 
at least two (2) full business days prior to any regular meeting. 
Unless agreed to by all Members, no vote may be taken on an issue 
unless the necessary material has been provided to the Members not less 
than twenty-four (24) hours prior to the Board Meeting to consider such 
issue.
Section 5. Parliamentary Rules
    Unless otherwise stated in these Rules, or relevant statutes or 
regulations, the meetings of this Board shall be conducted in 
accordance with Robert's Rules of Order (Newly Revised) (9th Edition).

Article VI

Public Appearances and Attendance

Section 1. Attendance
    Members of the public may attend all meetings of the Board except 
those meetings or portions of meetings which are closed as directed by 
the Board, consistent with the Government in the Sunshine Act. Members 
of the public may speak or make presentations to the Board under the 
rules outlined under this article.
Section 2. Presentations to the Board
    Members of the public may make a presentation to the Board only on 
the basis of a written request and statement covering the subject 
matter received at least five (5) days prior to the meeting, which is 
approved by a majority of the Board.
Section 3. Limitations
    Public presentations may not conflict with the provisions of the 
Administrative Procedure Act and other Board policies on the handling 
of public comments. In the event that a presentation is made concerning 
a regulation during the comment period, the presenter must submit a 
summary or a text of their comments to be filed along with other 
comments received.

Article VII

Board Operational Responsibilities

Section 1. General
    The purpose of this article is to ensure the efficient operation of 
the Farm Credit Administration (FCA), the FCA Board (Board), and the 
Chief Executive Officer of the FCA (CEO) concerning operational 
responsibilities. This rule shall, by itself, neither preclude the CEO 
from bringing to the Board issues on which this rule does not require 
Board action, nor preclude the Board from involving itself in matters 
not addressed herein. The Board might, for example, be involved in 
operational matters that become, in the Board's view, policy matters as 
a result of special congressional attention.
Section 2. Documents and Communications
    (a) CEO responsibilities. The CEO is responsible for ensuring the 
accomplishment of the goals set by the Board within the constraints 
imposed by statue, regulation, Board policy, precedents, sound 
management practices, and budget resource limitations. The CEO will 
ensure effective and efficient mechanisms that accomplish the desired 
goals. Those mechanisms include the development of specific objectives, 
action plans, budgets, procedures, administrative policies, 
communications with Farm Credit institution employees and directors, 
and other activities as needed. Proposed actions that are inconsistent 
with existing Board policy require Board approval. It is understood 
that a substantial part of the CEO's and staff's jobs requires the 
exercise of sound judgement in applying statutory, regulatory, Board 
policy, and precedential guidance to specific situations, and in most 
cases the Board does not expect to take part in applying existing 
guidance to specific situations. There may be situations where an 
interpretation of existing guidance would constitute the formulation of 
policy; the CEO should refer such interpretations to the Board.
    (b) Approval, review, and consultation. The FCA Board is 
responsible for determining the agency's position on policy matters 
affecting the agency's mission. The FCA Board typically expresses its 
position through the approval of regulations and Board Policy 
Statements that define the goal(s) to be accomplished. Board Policy 
Statements and Bookletters should be reviewed at least every five (5) 
years.
    Proposed and final FCA regulations, Board actions, and minutes of 
Board meetings must be approved by the Board. The promulgation of 
regulations adopted by the Board shall be in compliance with the 
requirements of the Farm Credit Act of 1971, as amended, and the 
Administrative Procedure Act. Federal Register notices must be approved 
by the Board, except for announcements and notices that merely make 
public prior actions that have been taken by the Board. The following 
are examples of Federal Register notices that need not be approved by 
the Board: Notices concerning effective dates or technical corrections 
of regulations, notices of meetings or hearings, notices publishing 
Board Orders and Policy Statements, and notices informing the public of 
the amendment or cancellation of Farm Credit institution charters.
    Bookletters, memoranda, bulletins, and other mass mailings to Farm 
Credit institutions (except documents listed in Attachment A) must be 
reviewed by the Board prior to distribution. Documents may be added to 
or deleted from Attachment A by Board vote.
    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 the 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 as CEO and may be delegated to the Chief Operating 
Officer. The CEO shall 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.
    (c) Signature authority. Authority to sign official Board 
documents, including, but not limited to, proposed and final 
regulations, Federal Register notices, Board actions, no-action 
letters, and minutes is delegated to the Secretary to the Board 
(Secretary). Documents executed by the Secretary or an alternate will 
be signed under the caption ``By Order of the Board'' and reflect the 
title of ``Secretary of the Board,'' or ``Acting Secretary of the 
Board'' as appropriate. The Chairman has the authority to sign 
bookletters, memoranda, bulletins, and other mass mailings to Farm 
Credit Institutions, and such authority will not be delegated to others 
(except for documents listed in Attachment A).
    (d) Correspondence. The Chairman shall, as required by section 
5.10(a)(3) of the Farm Credit Act of 1971 (Act), approve and sign 
correspondence 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 FCA Office Directors 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, etc., 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 
acknowledgements or interim responses without Board approval, provided 
such responses contain no policy statements or only previously approved 
statements.
    (e) Authentication and certification of records and documents. The 
Chairman shall designate who is authorized and empowered to execute and 
issue under the seal of the FCA, statements authenticating copies of, 
or excerpts from, official records and files of the FCA; and to 
certify, on the basis of the records of the FCA, the effective periods 
of regulations, orders, instructions, and regulatory announcements; and 
to certify, on the basis of the records of the FCA, the appointment, 
qualification, and continuance in office of any officer or employee of 
the FCA, or any conservator or receiver acting under the direction of 
the FCA. The designated official(s) may be further empowered 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.
Section 3. Financial and Strategic Management
    (a) Budget approval. The CEO shall, consistent with the provisions 
of the Act, other law and regulations, and applicable policy, oversee 
the development of budget proposals and cause the expenditure of funds 
within approved budgets to meet the agency's mission and objectives. 
The Board will approve an object class budget for the agency as a whole 
and a budget for each office. Any change to the object class budget for 
the agency as a whole will be approved by the Board. However, 
reallocation of funds between object classes within an office that has 
a de minimis effect (less than 2%) on the agency total for the object 
class need not be approved by the Board.
    (b) Procurement. The CEO has the authority, consistent with FCA and 
federal policies and practices, to purchase or negotiate to purchase 
necessary services and/or materials for the operations of the agency. 
The Board shall exercise its authority to approve procurements through 
its approval of the budget. The objectives of single procurements in 
excess of $100,000 shall be made clear in conjunction with the budget 
approval process. For procurements outside of the Budget approval 
process, the Board shall approve expenditures and statements of work 
for amounts in excess of $100,000.
    (c) Strategic planning. The Board has authority for the oversight 
and approval of strategic planning, including budgetary and regulatory 
planning, and will exercise its involvement in these areas via the 
Strategic Planning Committee (Committee). The Committee will consist of 
the Board Members' Executive Assistants, the Chairman's Executive 
Assistant, and the Chief Operating Officer. The Committee shall be 
coordinated by the Chief Operating Officer. The Committee shall make 
periodic reports to the Board regarding its activities.
    (d) Information resources. To ensure a reasonable return of 
efficiency and effectiveness given the costs of the investment, 
information and information resources will be managed to assure that 
the agency collects and disseminates the information necessary to the 
effective discharge of the agency's mission; that information 
activities reflect the goals and priorities in the agency's strategic 
and operational plans; and that investment decision in information 
resources be made on a life-cycle basis so that overall costs and 
benefits are weighed rather than simply the initial costs and benefits.
    To ensure this objective, oversight of major automation purchases, 
projects, and policies at FCA will be overseen by an IRM Steering 
Committee of senior officials to provide oversight, review, and 
validation of IRM initiatives. The committee will consist of the Chief 
Operating Officer, and the Office Directors of the Offices of 
Examination, Special Supervision and Corporate Affairs, Resources 
Management and General Counsel, one rotating member chose from the 
other FCA offices and the Chief of the Information Resources Division. 
The COO shall chair the committee.
Section 4. Human Resources
    The CEO has authority, consistent with the Act, FCA policy and 
budget, and federal personnel rules to hire the personnel necessary to 
carry out the objectives of the agency. Each Board Member is entitled 
to appoint staff within the constraints of the adopted budget for the 
Office of the Board. Consistent with the Act, the Board shall approve 
the appointment of the ``heads of major administrative divisions,'' 
which the Board interprets to mean the Chief Operating Officer and 
career Office Directors. The Chairman has authority to appoint the 
Secretary and noncareer (political) Office Directors but does so with 
the understanding that all Agency representations by such staff are on 
behalf of the Board.
    (a) Organization chart. Consistent with its mandate to approve 
regulations and the appointments outlined above, the Board shall 
approve the FCA organizational chart down to the Office level along 
with relevant functional statements for each Office. Authority to make 
organizational changes within any Division shall rest with the CEO, and 
may be delegated to the COO or Office Directors.
    (b) Chief Operating Officer (COO). The COO shall report to the 
Chairman as CEO regarding all matters established to be CEO 
responsibilities as listed in this Policy Statement, including such 
administrative items as approval of leave, etc. The COO shall report to 
the Board regarding matters on which it has retained responsibility. 
The same shall be said for the Secretary and the Director of the Office 
of Congressional and Public Affairs.
    (c) Inspector General (IG). The IG shall report to the Chairman as 
CEO and agency head. The CEO shall be responsible for overseeing the 
audit resolution process. However, the CEO must obtain Board approval 
of resolutions where the issue would normally require Board action. The 
CEO (through his/her designee) shall be responsible for implementation 
and audit followup. The Chairman will provide a briefing in the 
appropriate setting for the Board on the Inspector General's Semi-
Annual Report to Congress within ten (10) working days of the 
Chairman's transmittal of the Report to Congress. The Chairman will ask 
the IG and Audit Followup Official to discuss the status of any 
unresolved audit recommendations, unimplemented management decisions, 
and other issues identified in the Semi-Annual Report. Consistent with 
its budgetary responsibility, the Board must approve all audit 
resolutions that result in a cumulative cost to the Agency in excess of 
$25,000 per audit. This requirement applies to audits commenced after 
May 1, 1993.
    (d) Director, Office of Secondary Market Oversight. The Director 
shall report to the FCA Board regarding general policy and rulemaking 
issues and to the FCA Chairman as CEO relating to administrative 
activities of the Office.
    (e) General Counsel. The General Counsel shall report to the Chief 
Operating Officer concerning administrative matters and to the Board 
regarding matters of agency policy. Additionally, the General Counsel, 
by the nature of the position, shall, as appropriate, maintain special 
advisory relationships in confidence as necessary with individual Board 
members. The General Counsel shall keep the Board fully informed of all 
litigation where the Agency is involved.
    (f) Performance appraisals. Each Board member is responsible for 
appraising the performance of his or her staff. The Chairman, after 
consultation with the other Board members, is responsible for the 
appraisal of the performance of the Secretary to the Board. The 
Chairman as CEO, after consultation with the other Board members, is 
responsible for appraising the performance of the COO, the Inspector 
General, the Director of OCPA, the Director of OSMO, and the EEO 
Officer. The COO is responsible for appraising the performance of the 
career Office Directors and other staff that report directly to him or 
her. The CEO, in consultation with the other Board members, is 
responsible for reviewing the performance appraisals conducted by the 
COO. All performance appraisals will be conducted in accordance with 
the procedures set forth in the agency's PPM.
Section 5. Litigation
    The CEO 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.
Section 6. Examinations
    Consistent with the Act, the Board shall adopt an annual Schedule 
of Examination and approve the policy scope of examination. The Chief 
Examiner shall report quarterly to the Board on the status of 
implementing the schedule and other information associated with the 
execution of OE's strategic plan. Included in that report shall be a 
discussion of general trends and significant examination issues and 
concerns. This report may be given in conjunction with the quarterly 
review of System performance.

Article VIII

Board Member 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 personal expense of the nominee and will not be 
reimbursed by FCA. However, consistent with existing General Accounting 
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 or Acting 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 or 
Acting 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 or Acting 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, other 
senior agency officials, 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 of the agency after confirmation by the Senate and 
could thus substantially benefit the agency.
Section 2. Board Member Relocation
    Board members will be reimbursed by FCA for travel and 
transportation expenses incurred in connection with relocation to their 
first official duty station. Expenses for which reimbursement 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. 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 of the 
Human Resources Division detailing the expenses that may be reimbursed 
and will be required to execute a one year service agreement.
Section 3. Representation and Reception
    The Farm Credit Act of 1971, as amended, authorizes the expenditure 
of Farm Credit Administration (FCA) funds for official representation 
and reception expenses. Expenditures of funds for official 
representation and reception expenses shall not exceed any statutory 
limitation placed on the expenditure of such funds. Additionally, use 
of the representation and reception fund is discretionary and the Board 
may determine in any fiscal year that it will spend no funds for 
official representation and reception activities. Furthermore, the 
official representation and reception fund shall be a fund of last 
resort and shall not be used for expenditures that can properly be 
classified as another type of agency expenditure.
    All expenditures of funds for official representation and reception 
expenses shall be in accordance with the guidelines contained in this 
rule. Furthermore, all such expenditures shall be consistent with the 
decisions of the Comptroller General of the United States pertaining to 
official representation and reception expenses, except that no 
expenditure of representation and reception funds shall be made for 
paying expenses of FCA or other Federal Government employees at any 
official representation and reception function.
    Official functions falling within the representation and reception 
fund category would be activities of the FCA Board or of individual 
members of the Board, acting in their official capacity as 
representatives of the FCA, that involve extending official courtesies 
to public and foreign dignitaries on occasions associated with the 
mission of FCA. Expenses for such activities could include, for 
example:
    Food and beverages, either formal meals, snacks or refreshments; 
receptions; banquets; catering services; tips and gratuities; 
invitations; rental of facilities and incidental equipment; and 
supplies and services that are incurred in hosting such functions.
    Typical examples of proper expenditures of FCA representation and 
reception funds include:
    (a) The FCA Board hosting an FCA-sponsored reception for non-
Government personnel, e.g., presidents and chief executive officers of 
Farm Credit System associations; or
    (b) A Board member hosting and paying for the lunch of a 
representative of the Farm Credit Council when the purpose of the lunch 
is to discuss Farm Credit business.
    No expenditure of representation and reception funds may be made 
for activities relating solely to personal entertainment, such as 
attendance at a sporting event or a concert or for expenditures 
generally regarded as personal obligations.
    Before expenditures for official representation and reception 
expenses are made by the FCA Board or individual members of the Board, 
approval shall be obtained from the Chairman of the Board. FCA-006 
form, ``Official Representation and Reception Expense,'' shall be 
submitted, through the Secretary to the Board, to the Chairman for 
approval. After approval by the Chairman, the Secretary to the Board 
will submit the request to the FCA Certifying Official for final 
approval. If circumstances necessitate expenditures for official 
representation and reception expenses without prior approval by the 
chairman, form FCA-006 shall be submitted, through the Secretary to the 
Board, to the Chairman with an attached explanation of why prior 
approval could not be obtained. If the expenditure is not approved by 
the Chairman or the FCA Certifying Official, the party making the 
expenditure will be responsible for all costs associated with the 
expenditure.

Article IX

Amendments

Section 1
    The business of the Board shall be transacted in accordance with 
these Rules as the same may be amended from time to time: Provided, 
however, that upon agreement of at least two (2) 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 Article V, Section 3(b), hereof.
Section 2
    These Rules may be changed or amended by the concurring vote of at 
least two (2) Members upon notice of the proposed change or amendment's 
having been given at least thirty (30) days before such vote.

Attachment A

Documents Which Are Mailed in Mass to Farm Credit Institutions Which Do 
Not Have To Be Reviewed by the FCA Board Prior to Distribution

    1. Call for Reports of Financial Condition and Performance and Loan 
Account Reporting System Data for the Quarter Ending ________.
    2. Regulation handbook updates, including Federal Register 
tearsheets for FCA Handbook mailings.
    3. PPM mailings.
    4. Vacancy Announcements below the Division Director level.
    5. Interpretations of accounting pronouncements applicable to the 
Uniform Call Report Instructions.
    6. Young, Beginning and Small Farmer reports.
    7. Budget data for the Banks of the Farm Credit System that is 
prepared for the Office of Management and Budget.
    8. Changes to FCA Examination Manual.
    9. Information Systems Bulletins.
    10. Changes to Loan Account Reporting System and Uniform Call 
Report requirements and related instructions.
    11. Office of Inspector General mailings for official audit 
purposes.

    Adopted this 7th day of February, 1994.

    By Order of the Board.

    Dated: April 7, 1994.
Curtis M. Anderson,
Secretary, Farm Credit Administration Board.
[FR Doc. 94-8905 Filed 4-12-94; 8:45 am]
BILLING CODE 6705-01-P-M