2012 Beef Board Annual Report - Cattlemen's Beef Promotion and ...

Cattlemen’s Beef Promotion and Research Board
Financial Statements as of September 30, 2012 and 2011
Together with Independent Auditors’ Report Thereon
Board of Directors
Cattlemen’s Beef Promotion and Research Board
Independent Auditors’ Report
We have audited the accompanying statements of assets, liabilities, and net assets — modified cash basis of the Cattlemen’s Beef Promotion
and Research Board (the Board) as of September 30, 2012 and 2011, and the related statements of revenues, expenses, and changes in
unrestricted net assets — modified cash basis for the years then ended. These financial statements are the responsibility of the Board’s
management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
As described in Note 2, these financial statements were prepared on the modified cash basis of accounting, which is a comprehensive basis of
accounting other than generally accepted accounting principles in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, and net assets of the
Board as of September 30, 2012 and 2011, and its revenues, expenses, and changes in unrestricted net assets for the years then ended, on the
basis of accounting described in Note 2.
In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2012 on our consideration of the
Board’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying
supplementary statements of assessment revenue by state — modified cash basis is presented for purposes of additional analysis and is not a
required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.
In connection with our audits, nothing came to our attention that caused us to believe the Board was not in compliance with the provisions
of the Beef Promotion and Research Act of 1985 and the Beef Promotion and Research Order (the Order) related to the use of funds
collected by the Board insofar as they relate to accounting matters. Further, in connection with our audits, nothing came to our attention
that caused us to believe the Board was not in compliance with the terms of Section 1260.149(f) of the Order, or with the terms of the
Agricultural Marketing Service Investment Policy, which describe the type of instruments in which the Board may invest, insofar as they
relate to accounting matters. However, our audits were not directed primarily toward obtaining knowledge of such noncompliance.
The report is intended solely for the information and use of the members of the Board and its management, the Audit Committee, and the
United States Department of Agriculture and is not intended to be and should not be used by anyone other than these specific parties.
Clifton Larsen Allen LLP
Greenwood Village, Colorado
November 30, 2012
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