Audit: ‘Broad and Pervasive Mismanagement’ of USDA Farmers Program

A program intended to give financial assistance to “socially disadvantaged” farmers is riddled with “broad and pervasive mismanagement,” leading the U.S. Department of Agriculture inspector general to question millions of dollars in taxpayer funds. The Office of Advocacy and Outreach (OAO), established by the 2008 Farm Bill, administered $38 million in grants in fiscal years 2010 and 2011. The Office of the Inspector General (OIG) found no supporting documentation for any of the grants issued in those years, and suggested that the USDA may have awarded them in violation of federal law. “OIG found a pattern of broad and pervasive mismanagement of OAO grant funds in FYs 2010 and 2011,” the audit said. “This occurred because grant approval processes were informal and undocumented and regulatory processes were disregarded.” Among the audit’s findings included $20 million in “potential” Anti-Deficiency Act violations issued under the OAO’s Socially Disadvantaged Farmers and Ranchers Program, also known as Section 2501. The report found that the office issued grants to applicants “who may not have been the most meritorious,” did not monitor grant spending, and did not ensure that recipients followed regulations. The OIG questioned the program’s grants because the USDA did not use a competitive process, despite it being required by law. The OIG found similar problems with the program in prior audits, noting that lack of oversight of the program, nepotism, and conflicts of interest have been a “consistent theme.”...more