TAILIEUCHUNG - Animal and Plant Health Inspection Service Bovine Spongiform Encephalopathy (BSE) Surveillance Program – Phase II and Food Safety and Inspection Service Controls Over BSE Sampling, Specified Risk Materials, and Advanced Meat Recovery Products - Phase III

My statement today is primarily based on our prior work related to the department’s efforts to achieve audit readiness, implement modernized business systems and a business enterprise architecture, and reengineer its business processes. In addition, we are providing information on DOD’s updated plans for achieving auditability presented at a February 2012 briefing. Specifically, we are presenting a comparison of key milestones in the February 2012 DOD briefing 5 that outlined its plans to accelerate the timeframe to achieve SBR auditability with DOD’s May 2011 Financial Improvement and Audit Readiness (FIAR) plan. We also conducted interviews with DOD officials about the February 2012. | USDA . Department of Agriculture Office of Inspector General Great Plains Region Audit Report Animal and Plant Health Inspection Service Bovine Spongiform Encephalopathy BSE Surveillance Program - Phase II and Food Safety and Inspection Service Controls Over BSE Sampling Specified Risk Materials and Advanced Meat Recovery Products - Phase III Report No. 50601-10-KC January 2006 UNITED STATES DEPARTMENT OF AGRICULTURE OFFICE OF INSPECTOR GENERAL Washington . 20250 January 25 2006 REPLY TO ATTN OF 50601-10-KC TO W. Ron DeHaven Administrator Animal and Plant Health Inspection Service Barbara Masters Administrator Food Safety and Inspection Service ATTN William J. Hudnall Deputy Administrator Marketing Regulatory Program Business Services William C. Smith Assistant Administrator Office of Program Evaluation Enforcement and Review FROM Robert W. Young s Assistant Inspector General for Audit SUBJECT Animal and Plant Health Inspection Service - Bovine Spongiform Encephalopathy BSE Surveillance Program - Phase II and Food Safety and Inspection Service - Controls Over BSE Sampling Specified Risk Materials and Advanced Meat Recovery Products - Phase III This report presents the results of our audit of the enhanced BSE surveillance program and controls over specified risk materials and advanced meat recovery products. Your written response to the official draft report dated January 20 2006 is included as exhibit G with excerpts of the response and the Office of Inspector General s OIG position incorporated into the Findings and Recommendations section of the report where applicable. We accept the management decisions for all recommendations. Please follow your agency s internal procedures in forwarding documentation for final action to the Office of the Chief Financial Officer OCFO . We are providing a separate memorandum to the agencies and OCFO that provides specific information on the actions to be completed to achieve final action. We appreciate your timely response

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