NCBA Releases Responses to Audit
Discrepancies addressed by leaders; several ag organizations closely following situation.
Compiled by staff
Published: Jul 29, 2010
The National Cattlemen's Beef Association has released a 27-page response to the Cattlemen's Beef Promotion and Research Board audit and independent accountant's report critical of the way NCBA expenses are charged as beef checkoff activities. According to the report the audit was performed to assist the Board in determining that the salary and wages, disbursements and other charges selected for testing are in compliance with the Beef Promotion and Research Act of 1985 and the Beef Promotion and Research Order and the contract between NCBA and the Beef Promotion Operating Committee.
In the NCBA report the organization's leaders addressed each discrepancy. One of the problems cited was expenses for three employees to attend the NCBA Charity Golf Tournament. In submitting their expenses neither participant charged their expenses to the same account. The report also noted seven invoices totaling nearly $188,000 that were not paid timely. Payments ranged from two to twelve days late.
A question that came out of the audit was spouse and family travel. The NCBA response stated historically that an officer dinner with spouses at the annual industry meeting has not been an issue. Currently CBB guidelines for contractors and NCBA policies do not prohibit spousal travel expenses, but NCBA leaders will meet with CBB to establish a guideline.
One finding that was presented in the response was that work needs to be done to establish guidelines to address each issue, and in some cases review existing guidelines and change them to better address each issue. Also guidelines for establishing a paper trail before an event is incurred will likely be of help.
Several agricultural and livestock organizations are closely watching the NCBA situation. National Farmers Union President Roger Johnson notes an appropriate checkoff program with the right financial, operational and governance structure is important for everyone. Johnson says his organization commends the CBB for assisting in the audit and pushing for further evaluation, with a more comprehensive compliance review.
In a joint letter five agricultural and livestock groups addressed the CBB audit and indicators that NCBA has substantially breached the financial firewall and did not maintain sufficient documentation differentiating between the policy and checkoff sides of the organization.
NFU is continuing dialogue with NCBA, CBB and other agricultural and livestock leaders to ensure producers benefit from a revised checkoff program.
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Tagged: NCBA, checkoff, National Cattlemen's Beef Association
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