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

2

Sources of Compliance Assurance

Internal Audits

Funding AuditsExternal Audit

USMEF Staff

3

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

4

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.

5

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

6

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

7

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