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FI worked with USDA RD’s Budget Division to perform credit subsidy reestimates for more than 30 of RD’s largest credit programs, with origination volumes greater than $40 billion. We evaluated RD’s existing processes and tools, created additional Visual Basic for Applications tools and control procedures to streamline reestimate operations, and then recommended process and tool improvements.
Our team conducted sensitivity, decomposition, and other analyses to thoroughly explain reestimate results and supported the results through Office of Management and Budget (OMB) and financial statement auditor review. After performing credit subsidy reestimates, FI provided USDA RD staff with a methodological framework and training for validating model inputs, reestimate results, and explaining reestimate results.
USDA RD earned an unqualified financial statement audit opinion as a direct result of FI’s credit subsidy reestimate work. In addition, USDA RD implemented FI’s methodological framework for reestimate validation and our recommendations for enhancements to reestimate tools and controls. As a result, USDA RD is able to validate and explain reestimate results, reduce errors, and substantially reduce the time required to perform credit subsidy reestimates.