Potato Grower

FROM THE BOARD by Diana LeDoux, VP, Finance and IT The Transparency Responsibility Maximizing return on grower investment MORE THAN LIKELY YOU’VE read here, on the pages of Potato Grower magazine, how U.S. frozen potato products are used as pizza toppings in foreign markets, or at retail, how fresh potatoes drive added sales around the entire grocery store. This is where the USPB makes an accounting to the industry of how the growers’ return on investment is maximized. There is another way the USPB makes itself accountable to the industry. Unless you are a USPB board member who has attended the Annual Meeting, or have previously served on the USPB Finance Committee, you are probably not aware of the USPB’s budgeting process and auditing requirements. Although this work is comparably “behind the scenes,” strong financial and internal control processes help make all of the domestic and international marketing programs you’ve heard about possible. It’s how we ensure the highest fiduciary standards that result in USPB programs that “maximize return on grower investment.” The Finance Committee reports the USPB’s stewardship of grower invested funds, and produces transparency so the industry can hold its marketing programs accountable. BUDGETING PROCESS As with every organization, the USPB budgeting methodology is to project revenue, budget for fixed costs and then budget for USPB programs, which generally starts with previous year allocations. This far into the process, if there is a surplus remaining, it gets allocated to the program areas based on any initiatives that came forward prior to the current year’s budget process, or to reserves. The program committees and the Executive Committee— your USPB grower leaders—are the ones who decide which initiatives are to come forward, as determined by the USPB Long Range Plan. If there is a deficit, then decisions are made where to make budget cuts. These cuts are not only applied to the program areas, but may also involve taking a look at fixed cost priorities. 38 Potato Grower | MARCH 2011 Once an annual USPB budget has been developed by the staff, finance and executive committee members, it then undergoes a stringent approval process. The first step is the USPB Finance Committee reviews the budget draft and any development notes or explanatory documents. After the budget is approved by this committee, the USPB Executive Committee will review, make comments and recommendations. Once they’ve approved the budget, it is reviewed by the USPB Administrative Committee for comment and approval and then it is ultimately presented to all of the board members for review and ratification at the USPB Annual Meeting. After the full board approves this budget, it is then submitted to USDA- Agricultural Marketing Service (AMS) with a Marketing Plan that has been developed by the USPB management staff for approval. This entire process begins in October with the executive committee, and November with the finance committee and is concluded the following May with AMS approval each year. This ensures the USPB budget is implemented by the beginning of each year in time for the USPB’s July 1–June 30 Fiscal Year program commitments. AUDITING PROCESS Prior to beginning the budget development process, and for accountability purposes, the USPB is audited. This financial audit must be completed so the auditing firm can report directly to the executive and finance committee members on the audit process and outcome in time for the November budgeting meeting. Once the audit report is made, the audited financial statements can be released. The audited financial statement is posted on the USPB’s website for industry review. Because the USPB International Program is efficient in obtaining Foreign Agricultural Service (FAS) funding, audits are also performed by FAS on each major program. The funding sources obtained from FAS are Market Access Program (MAP), Quality Samples Program (QSP), Cochran, Emerging Markets Program (EMP) and Technical Assistance for Specialty Crops (TASC) programs. These funds are audited twice each year to ensure federal register and matching fund compliance. The final audit is through the USDA- AMS. It performs a management review every three years, which covers compliance of all key USPB staff expense reports, contracts, USDA approvals and board member expense reports to the AMS Guidelines. The hallmark of the USPB is transparency to the industry. We set a high standard, and we are completely responsive and accountable to the industry we serve. If you have any questions regarding the USPB budget, please contact me by email, diana@uspotatoes.com, or by phone, (303) 369-7783. PG

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