From the CEO
Colin Woodall
ACCOUNTABILITY , PART 1
As I write my piece each month for the National Cattlemen , I try to focus on timely and relevant issues . Every once-in-a-while , though , I believe it is important to revisit the basics of how the association works . This month , I would like to talk about accountability .
NCBA is a non-profit trade association that relies on several income streams to fund the work we do . Member dues fund the policy work we take on , and Checkoff dollars fund our work as a contractor to the national Beef Checkoff and the work we do as the home of the Federation of State Beef Councils . As we have talked about before , Checkoff dollars can never be used for policy work . However , we can use policy dollars to protect and defend the Checkoff . So , how do we keep it all straight ?
We have an internal accounting system rivaling anything you would find in a small corporation . We utilize project codes to account for every dollar we spend . These project codes are part of the financial firewall which ensures funds are used according to their specific purpose by allowing us to track time and expenses associated with every action we take . Our financial firewall is enforced , monitored , and audited by our in-house compliance officer whose sole job is to ensure we are always in compliance with the Beef Promotion and Research Act and Order .
Each new employee receives compliance training as part of their new employee orientation and onboarding process . Compliance with the Act and Order is constantly reinforced through my messages to staff , compliance officer engagement with staff , and senior leader enforcement of compliance within their teams . One tool we use is our timekeeping system ; every NCBA employee must account for the time they spend each day at work . Entries are logged to account for every 15 minutes of time worked . That time is associated with one of the project codes mentioned above . These timesheets are submitted twice a month . We have a member of our accounting team who reviews and audits the time submitted to ensure our compliance with the Act and Order . Once our internal process is complete , our timesheets are reviewed by the Cattlemen ’ s Beef Board ( CBB ) staff to ensure we are complying with the Act and Order .
NCBA ’ s compliance officer conducts annual means testing meant to verify our internal processes and procedures work . The annual
means testing shows time and again that our system is robust and works to protect Checkoff dollars from being used on lobbying or policy issues . Compliance , though , transcends our internal controls . We are consistently audited by CBB for compliance with the Act , Order and our contractor agreement . We are also subject to audits by USDA ’ s Agricultural Marketing Service and the Office of Inspector General .
As I just mentioned , we sign a contractor agreement with CBB to conduct our work in compliance with the Act and Order . As part of that , we maintain a banking account reserved only for Checkoff dollars . Each year , NCBA hires an outside accounting firm to do a complete audit of our financial position . This includes our compliance with all applicable laws . That audit is reviewed by NCBA ’ s Finance & Audit Committee which is led by NCBA ’ s treasurer and made up of volunteer producer leaders whose job is to ensure our compliance and evaluate the financial position of the association . NCBA ’ s external auditors also perform a yearly financial firewall test as part of their audit . The Finance & Audit Committee met in Denver in December to review the audit and have an Executive Session with the auditors where NCBA staff were not present . This is yet another level of scrutiny to ensure accountability .
In addition to all our compliance and audit functions , it is important to note the role of CBB and USDA in approving our work . We must have CBB and USDA approval for work we do with Checkoff dollars . For example , if we want to produce a Beef . It ’ s What ’ s For Dinner . recipe book , we must get approval from CBB and USDA to conduct that project . If we do not have approval , we will not be reimbursed for the work done . The Beef Checkoff has a program called the Authorization Request Management System ( ARMS ) that monitors these projects and provides the approval needed before we commence work . The ARMS number must be associated with that work and included in the project expenses we submit for reimbursement .
I will continue this discussion in next month ’ s article , but in the meantime , I hope this helps you understand the lengths we go to remain in compliance with the Act and Order , especially in ensuring no Checkoff money is ever spent on NCBA ’ s policy work .
6 NATIONAL CATTLEMEN www . NCBA . org