2014 Beef Checkoff Annual Report - Page 16

Other Matters In connection with our audits, nothing came to our attention that caused us to believe the Board failed to comply with the provisions of the Beef Promotion and Research Act of 1985 (the Act) and the Beef Promotion and Research Order (the Order) related to the use of funds collected by the Board insofar as they relate to accounting matters. Further, in connection with our audits, except as described in the accompanying report issued in accordance with Government Auditing Standards, nothing came to our attention that caused us to believe the Board was not in compliance with the terms of Section 1260.149(f) of the Order, or with the terms of the Agricultural Marketing Service (AMS) Investment Policy, which describe the type of instruments in which the Board may invest, insofar as they relate to accounting matters. However, our audits were not directed primarily towards obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the Board’s noncompliance with the above referenced Act, Order, and AMS Investment Policy, insofar as they relate to accounting matters. The report is intended solely for the information and use of the members of the Board and its management, the Audit Committee, and the United States Department of Agriculture and is not intended to be, and should not be, used by anyone other than these specific parties. CliftonLarsenAllen LLP Greenwood Village, Colorado November 20, 2014 Statements of Assets, Liabilities and Net Assets (Modified Cash Basis, Note 2) September 30, 2014 and 2013 Assets 2014 2013 Cash and Cash Equivalents (Note 3) $ 12,129,299 $ 13,795,268 Short-Term Investments (Note 3) 10,452,000 6,969,002 Capital Assets, net of accumulated depreciation of $69,401and $59,698, respectively 10,531 20,234 Other 30 — Total Assets $ 22,591,860 $ 20,784,504 Liabilities and Net Assets Due to State Beef Councils and Other $ 2,405 $ — Net Assets - Unrestricted (Note 5): Designated for future expenses 14,149,528 13,490,594 Designated - Board reserve 4,350,000 4,350,000 Undesignated 4,089,927 2,943,910 22,589,455 20,784,504 Total Liabilities and Net Assets $ 22,591,860 $ 20,784,504 Statements of Revenues, Expenses and Changes in Unrestricted Net Assets (Modified Cash Basis, Note 2) For The Years Ended September 30, 2014 and 2013 Revenues 2014 2013 Assessments (Note 1) $ 40,361,145 $ 39,596,999 Interest 61,901 66,485 Other 78,771 48,691 Total revenues 40,501,817 39,712,175 Expenses Program Expenses Promotion 9,438,367 15,528,767 Research 7,927,598 6,036,100 Consumer Information 8,366,182 3,390,267 Information 1,817,768 3,492,377 Industry Marketing 7,355,729 6,036,724 Foreign Communications 1,478,324 1,529,824 Producer Evaluation 175,274 179,590 Program Program Development 238,943 179,088 Total program expenses 36,798,185 36,372,737 Supporting Services USDA Oversight 289,631 279,075 Administration (Note 4) 1,609,050 1,536,829 Total expenses 38,696,866 38,188,641 Change in net assets 1,804,951 1,523,534 Beginning unrestricted net assets 20,784,504 19,260,970 Ending unrestricted net assets $ 22,589,455 $ 20,784,504 The accompanying notes to financial statements are an integral part of these statements. 16