OIG Audit Results - Cattlemen's Beef Promotion and Research Board

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Abbreviations Act…………. Beef Research and Information Act of 1985 AMS……….. Agricultural Marketing Service beef board….. Cattlemen’s Beef Promotion and Research Board BPOC………. Beef Promotion Operating Committee GIPSA ………Grain Inspection and Packers Stockyard Administration NCBA……….National Cattlemen’s Beef Association OIG………… Office of Inspector General Order……….. Beef Research and Promotion Order AUDIT REPORT 01099-0001-21 11
Exhibit A: Summary of Allegations Evaluation of Allegations During the course of our audit, we received three complaints directed towards the beef board and NCBA. The complaints alleged the misuse of beef checkoff funds and the misuse of the beef checkoff logo. We examined accounting and management records, where appropriate, and discussed the complaints with applicable parties, including AMS officials. Overall, we concluded that the beef board and NCBA took appropriate action to correct the matters, or that there was no impropriety related to the allegation. The specific allegations, as well as the work we performed and the conclusions we made, were as follows: · NCBA Allegedly Charged Prohibited Expenses to the Checkoff Fund A beef industry organization alleged that NCBA knowingly and deliberately submitted expenses for a policy-related event, an activity that is specifically prohibited by legislation. We examined the beef board’s reimbursement records and NCBA’s travel expense records for fiscal years 2008 through 2010, and found that the beef board audit staff, as part of their duties to review federation expenses, requested that NCBA reclassify $400 in travel expenses pertaining to a policy-related event. NCBA did reclassify those expenses. Beef board officials informed us that since they did not pay NCBA’s request, they took no action against NCBA. AMS officials were aware of, and supported, the beef board’s actions. The beef board had the authority to take administrative action against NCBA for submitting the request for reimbursement; we concluded that its action was appropriate for the circumstances. · The Board Allegedly Used Checkoff Funds to Become Affiliated with a Private Industry Association A beef industry organization alleged that the beef board improperly used checkoff funds to join the U.S. Farmers and Ranchers Alliance, a private industry association. We discussed the matter with AMS officials, who provided us with a determination from the USDA Office of the General Counsel that stated the beef board could take the cited action, as long as: (1) the activity or project was consistent with specific authorizing legislation, implementing regulation, and USDA policy; (2) the beef board approved the activity or project; and (3) AMS approved the activity or project. Based on the Office of the General Counsel’s determination and documentation that supported the beef board and AMS’ approval of the activity, we concluded that the beef board’s use of checkoff funds for the alleged action met legislative requirements. 12 AUDIT REPORT 01099-0001-21
Page 1 and 2: United States Department of Agricul
Page 4: United States Department of Agricul
Page 8 and 9: Background and Objectives Backgroun
Page 10 and 11: AMS’ Oversight of Commodity Board
Page 12 and 13: Section 1: AMS Should Strengthen Ov
Page 14 and 15: are compliant before the board auth
Page 16 and 17: Scope and Methodology We performed
Page 20 and 21: · Alleged Unauthorized Use of the
Page 22 and 23: The resulting sample design is indi
Page 24: Agency’s Response USDA'S AMS’ R
Page 27 and 28: AMS Response to Office of Inspector
Page 29: To learn more about OIG, visit our

OIG Audit Results - Cattlemen's Beef Promotion and Research Board

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