1. 1 Checkoff Accountabilty

2. 2 Funds at Beef Board Checkoff funds at State Beef Councils Checkoff funds used by contracting organizations Checkoff Accountability Beef Board accountable for:

3. 3 CPA review of CBB’s expenditures to ensure compliance CPA review of investment activities to ensure compliance with the AMS Investment Policy …Through: Annual audit of CBB’s financial statements CBB Assures Accountability …

4. 4 Review of State Beef Council marketing plans and audited financial statements Financial and procedural reviews of SBCs Presentation of results to Beef Board Executive Committee Monitoring of procedures, participation in discussions and receipt of results by USDA representative Periodic contract compliance audits of Board’s primary contractors

5. 5 Financial & Procedural Reviews

6. 6 Beef Board Guideline The Cattlemen’s Beef Promotion and Research Board will perform at least 10 QSBC reviews annually Financial & Procedural Reviews

7. 7 2. Review areas of concern to the QSBC board and/or executive director 3. Review cash balances and investments for compliance 4. Test expenditures for compliance with Beef Act and Order and Beef Board Guidelines 1. Gain an overall understanding of QSBCs’ operations Summary of Review Procedures

8. 8 6. Review collections procedures to see that assessments and late fees are collected by the QSBC and remitted to the Beef Board in a timely manner 7. Review contractual relationships with industry organizations to ensure that billed expenses comply with the Act and Order and with Beef Board Guidelines 8. Meet with the QSBC’s auditor to review the audit work papers 5. Review internal controls to ensure that proper safeguards are in place

9. 9 2. Cash receipts and disbursements procedures 3. Contracts with universities 4. Written policies and procedures 5. Contractual relationships with state industry organizations 6. Collections policies and procedures 7. CPA audit procedures 8. Other issues 1. Cash & investment balances Summary of Findings