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.

Lindsay Hill has more on the story in today's ABN Ag News Headlines.

In response to this news, Executive Director of The Ohio Cattlemen's Association Elizabeth Harsh issued this statement:

"As appropriate NCBA will respond to the specifics noted in CBB's compliance review. However I am sure the NCBA staff, just as our state staff, are trained on correct use of checkoff dollars and take that responsibility very seriously. In Ohio the beef council is subject to an annual independent audit the results of which are submitted to CBB. In addition CBB regularly conducts compliance reviews of every beef council to insure the firewall that protects the correct use of checkoff dollars is in place and that those lines are not crossed.

I am confident that no one takes the implications made in the CBB release lightly, but  it appears considerable time is being spent on these issues when all organizations should be focusing our joint efforts on addressing the adversaries facing the beef industry."