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

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