Media Statement: NCBA Compliance Review Complete
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All checkoff contractors and subcontractors are subject to compliance reviews and audits.It is the responsibility of checkoff contractors to assure that checkoff funds are being used appropriately, and it is CBB’s responsibility to monitor checkoff contractors. To this end, CBB has the legal responsibility to perform reviews of its contractors periodically, and to oversee and enforce the rules regarding checkoff expenditures.
In February 2010, the Cattlemen’s Beef Board (CBB) began the process of conducting a routine compliance review of the National Cattlemen’s Beef Association (NCBA) by engaging an independent CPA firm to perform agreed-upon procedures at NCBA. This firm reviewed NCBA compliance with its agreements to conduct checkoff-funded programs in the areas of beef promotion, research, consumer information and industry information. The compliance review also included compliance of checkoff expenditures of the Federation of State Beef Councils Division of NCBA (Federation). This compliance review included fiscal years 2008 and 2009 as well as the five months ended February 28, 2010. The agreed-upon procedures were performed to test: NCBA’s allocation of overhead costs; employee time reporting as a basis for the allocation of salaries and benefits to the checkoff; travel expenses; Federation costs; and subcontractor selection procedures.
In addition to Beef Board members and qualified state beef councils, this independent report has been forwarded to USDA-Agricultural Marketing Service, the oversight agency for the beef checkoff, for review and input.
Sugested lead: The cattlemen's Beef Board today received the final report of a routine compliance review. Robert Fountain, Jr., cow-calf producer from Adrian, Ga. and CBB Secretary-Treasurer issued this statement:
Fountain 1: (An Independent ... (73 sec) ... funded activities.)
The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.