USMEF Audit Budget Committee
Compliance ReportNovember 4, 2013
Reginald StaplesDirector, Compliance
US Meat Export Federation
Compliance Goals
• Establishing, monitoring, and enforcing policies, procedures and expectations that support the Code of Ethics and our values
• Promoting awareness of USMEF compliance standards and expectations through communication and periodic training
• Evaluating and continuously improving the compliance function
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Sources of Compliance Assurance
Internal Audits
Funding AuditsExternal Audit
USMEF Staff
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2013 Compliance Highlights• Code of Ethics and Conflict of Interest (COI)
– USMEF staff completed the annual COE/COI– COI acknowledgement for EC members is 100% complete
• Compliance Training – Staff Training
• New MAP compliance requirements– Reimbursement Rules– Contracting Procedures– Foreign Corrupt Practices Act (FCPA)– Anti-Fraud Requirements
• New FAS Civil Rights training
– Executive Committee Member Ethics and Compliance Overview• Lobbying Policy• FCPA • EC Conflict of Interest Disclosure Process• Exception Procedures
• Internal Control Improvement Actions– New Contract Analysis Process– Updated Contracting Manual and Branded Guidelines– Implemented Anti-Fraud Program and Policy
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External Audits• JDS Professional Group: USMEF anticipates once the 2013 Financial
Statement Audit is completed, there will be no reportable deficiencies in internal control or material instances of non-compliance
• Foreign Agriculture Services: The status of the Final Report is pending due to the government shutdown.
• National Pork Board: The audit is in-process. A final report anticipated in early 2014.
• Cattlemen's Beef Board: The audit of FY2013 Direct and Overhead (Implementation) expenses is in-process.
• USB/SmithBucklin Audit: The audit is complete. Pending receipt of final report.
• Denver Sales Tax Audit: This audit was completed with the results extrapolated over a 7 year period. The total assessed amount was calculated as $10,315.
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High Risk Mitigation Projects
Anti-Fraud Training
Entity Level Controls Validation
Intellectual Property
Data Protection and Privacy
Moderate Risk Mitigation Projects
International Internal Control Matrix Review
Foreign Corrupt Practices Compliance 1 - Vendor Payment Monitoring
2 - Treasury/Cash Management
3 - Vendor Due Diligence
4 -Travel and Expense Reimbursement
Low Risk Mitigation Projects
5 - Compliance Performance Reporting
6 –Review USMEF Internal Controls• Operational Efficiency and
Effectiveness• International Controls
Validation and Effectiveness
Compliance Project Prioritization based on Level of Risk
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IP
C
Other Activities
7 – T&E Reimbursement and Denver Vendor Payments 8 – Database/SharePoint Implementation Project Lead
9 – Special Projects/Other
10 – 2014-2015 Risk Assessment
- Completed IP - In-Process C – Continuous TS - To-be-Scheduled in FY 2014
IP
TS
TS
C
IP
C
Project Status and 2014 – Compliance Plan
TS
TS
Overview of the ConvercentIntegrated Compliance Platform
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An integrated platform that aligns internal policies and compliance requirements
A multi-channel approach to employee incident reporting that ensures rapid responses and escalations
Values-based activities that incorporates our code of ethics
Aligns training of company values/policies and monitoring of course completion
