The Federal Crop Insurance Corporation's Efforts To Provide Monthly Reports to the Senate Committee on Appropriations

In response to a congressional request, GAO reviewed the methodology which the Federal Crop Insurance Corporation (FCIC) used in developing data for required monthly congressional reports on producer participation in the Federal Crop Insurance Program, the rate at which policies are cancelled, and any marketing or significant administrative changes that affect the program's cost. In addition, GAO reviewed the monthly reports to determine their accuracy.

GAO found that FCIC has often changed its methodology for preparing the monthly reports and the type of data reported. Furthermore, it has: (1) not reported accurately its actual business but has instead reported a combination of actual and estimated business; (2) either not reported information for its reinsured companies' business or presented information not comparable to the information presented for its master marketer business; (3) based its anticipated program participation on estimates or on funds appropriated by Congress; and (4) not reported marketing and administrative changes that affect program costs. As a result, the reports have been incomplete, have lacked continuity, and have generally overstated program participation. Information is available to FCIC that would provide Congress with an adequate basis for month-to-month comparisons of FCIC business. However, further clarification by Congress is needed on such issues as reporting estimated versus actual figures, pertinent marketing, and significant administrative changes that affect program costs.