Beef Promotion Operating Committee

Beef Promotion Operating Committee 20 members: 10 Beef Board; 10 State Beef Council Considers ARs; must contract with national, non-profit, industry-governed organizations to implement Must approve by 2/3 vote Subject to USDA approval 2

Operating Committee Responsibilities Recommends budget to Beef Board Considers and funds ARs Executes agreements with contractors Evaluates effectiveness of programs (delegated to Joint Evaluation Committee) 3

AR Budget Rules Individual costs within an approved AR may vary between tactics within the same strategy Funding cannot, however, be moved to a different strategy or AR without approval from the Operating Committee Only costs incurred for an activity included in an approved AR will be reimbursed

Operating Committee Responsibilities Reimburses Two Major Expense Types Program Implementation Direct Expenses Examples: Advertising costs Retail promotion Printed materials Allocation of Salaries & Benefits, Admin Overhead Examples: Staff salaries Staff benefits: health insurance, pension Rent, utilities, telephone Admin expenses: HR, accounting, IT Equipment: copies, printers, computers

Cost-Recovery Checkoff dollars are paid to contractors on cost-recovery basis only

Basic Purposes of OC Meetings March – Orientation and review planning priorities and provide budget direction for the next fiscal year May – Develop budget for next fiscal year and recommend to Beef Board Sept – Review/fund ARs, amend CBB budget if funds are available, approve agreement with contractors

Basic Purposes of OC Meetings Convention & Summer Conference – No OC meeting unless there is an urgent need Other – Periodic emails and conference calls to handle emergencies which do not require a face-to-face meeting