[Congressional Record (Bound Edition), Volume 145 (1999), Part 9]
[Extensions of Remarks]
[Page 12734]
[From the U.S. Government Publishing Office, www.gpo.gov]



      CONCERNING THE ADMINISTRATION OF THE OUTREACH FOR SOCIALLY 
     DISADVANTAGED FARMERS PROGRAM BY THE DEPARTMENT OF AGRICULTURE

                                 ______
                                 

                             HON. JOE SKEEN

                             of new mexico

                    in the house of representatives

                         Monday, June 14, 1999

  Mr. SKEEN. Mr. Speaker, I support funding grants to 1890, 1862, and 
1994 Land Grant Colleges and Institutions to enhance the viability of 
small farmers by providing training and technical assistance in overall 
farm management practices. H.R. 1906 provides $3,000,000 in funding for 
the program in fiscal year 2000, the same level as 1999 and provides 
that the Secretary of Agriculture may transfer up to $7,000,000 from 
the Rural Housing Insurance Fund Account for ``Outreach for Socially 
Disadvantaged Farmers.'' However, I am concerned about the Department 
of Agriculture's track record in the delivery of this program to date.
  Since the program was authorized by Section 2501 of the Food, 
Agriculture, Conservation and Trade Act of 1990, the management of the 
program has been transferred to several agencies in the Department 
ending in the Office of Outreach under Departmental Administration 
since 1998.
  USDA has not audited the program even though questionable fiduciary 
practices have surfaced, including two violations of the Antideficiency 
Act in 1996. In addition, in 1998, the USDA's Office of Outreach 
coordinated $4.8 million in cooperative agreements with other USDA 
agencies for small farmer outreach training and technical assistance 
with the same universities and colleges that have received funding 
under the Section 2501 authorities.
  I believe USDA should carefully review the funding and management 
requirements for the program and take appropriate action to ensure that 
eligible farmers and ranchers receive full benefit and that the 
American taxpayers' funds are being well spent.
  For the record, I am submitting copies of the Antideficiency Act 
notification letters and respectfully request they be included in the 
Congressional Record.

                                                    June 17, 1997.
     Hon. Franklin D. Raines,
     Director, Executive Office of the President, Office of 
         Management and Budget, Washington, DC.
       Dear Frank: As required by OMB Circular Number A-34, 
     section 32.2, the Department of Agriculture (USDA) is 
     reporting to the President, through your office, two 
     violations of the Antideficiency Act with respect to USDA's 
     Outreach for Socially Disadvantaged Farmers Program.
       Please let me know if additional information is needed.
           Sincerely,
                                                     Dan Glickman,
                                                        Secretary.
       Enclosure.
                                                    June 17, 1997.
     The President,
     The White House,
     Washington, DC.
       Dear Mr. President: This letter is to report two violations 
     of the Antideficiency Act, as required by section 1351 of 
     Title 31, United States Code.
       Both violations occurred in the Outreach for Socially 
     Disadvantaged Farmers Program account (1260601) of the Farm 
     Service Agency (FSA). The program was transferred from Rural 
     Development to FSA on October 1, 1995, under the Department 
     of Agriculture's reorganization. The violations occurred on 
     August 15, 1996, and August 27, 1996, and involved the 
     obligation of funds which exceeded the amount available in 
     the fiscal year (FY) 1996 appropriation for the Outreach for 
     Socially Disadvantaged Farmers Program. Officers responsible 
     for the violations were Carolyn B. Cooksie, Deputy 
     Administrator for Farm Loan Programs and John I. Just-Buddy, 
     Chief, Economic Enhancement Branch, FSA.
       The violations occurred with the awarding of cooperative 
     agreements by program officials which obligated $100,000 to 
     South Carolina State University and $25,414,24 to Langston 
     University. The agreements obligated funds exceeding the 
     amount available in the FY 1996 appropriation for the 
     Outreach for Socially Disadvantaged Farmers Program because 
     the program managers erroneously assumed, based on informal 
     advice they requested from FSA budgetary staff, that 
     unexpended funds from the expired FY 1993 appropriation were 
     available for new agreements. Program officials were 
     unfamiliar with budget and fiscal terminology and procedures, 
     and the FSA budget staff misunderstood the program manager's 
     request regarding fund availability. The violations were 
     identified in time to prevent the actual expenditure of funds 
     in excess of the appropriation.
       There is no evidence that anyone knowingly or willfully 
     violated the law. Thus, no disciplinary action has been 
     taken.
       An adequate funds control system for FSA is in place. 
     Officials responsible for these antideficiency violations 
     have been counseled to verify the availability of funds prior 
     to entering into future cooperative agreements.
       The Outreach for Socially Disadvantaged Farmers Program was 
     transferred to the Natural Resources Conservation Service 
     (NRCS) on October 1, 1996. NRCS has been provided a copy of 
     this letter.
       Identical letters will be submitted to the presiding 
     officer of each House of Congress.
           Respectfully,
                                                     Dan Glickman,
                                                        Secretary.

     

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