We have reviewed your first response to the subject audit report and have concluded that sufficient actions have been taken to resolve or close all recommendations except 5, 6a, 6b, 6c, 9b, 9c, and 9d. We will need additional information to close or resolve these recommendations.

You should forward the supplemental data concerning the seven
unresolved audit recommendations to us by March 6, 1987.
Please note that P.L. 96-304, the Supplemental Appropriations
and Rescission Act of 1980, and OMB Circular A-50 require
that all audit findings and recommendations be resolved within
a maximum of 6 months from the date of report issuance.
Specific criteria and procedures for audit resolution and
closure are set forth in Departmental Regulation 1720-1.
Since this report was released on September 26, 1986, it
must be resolved by March 26, 1987. Otherwise, we will be
required to include it in our "List of Audits Not Resolved
Within 6 Months" in the Semiannual Report to Congress.

Based on the documentation you provided, we closed recommendations 1a, 1b, 1c, id, 2, 3b, 8, and 10 and resolved recommendations 3a, 3c, 3d, 3e, 3f, 38, 3h, 4a, 4b, 4c, 7, and 9a. То close the resolved recommendations we will need the documentation requested in the attachment.

For your convenience, we have included an attachment showing the status of each recommendation and detailing the additional documentation needed for audit resolution and closure.

We appreciate the actions you and your staff have taken to effect a timely resolution of this audit.

if we can be of any assistance.

Please let us know

STEADIE MIXSON

Regional Inspector General for Audit

Attachment

B. DOCUMENTS NEEDED FOR RESOLUTION/CLOSURE OF UNRESOLVED FINDINGS

Recommendation #5

Please provide a copy of the policy statement you are currently developing regarding public notification of recalls. Because our recommendation was for issuance in all Class I recalls, we will whether the "limited exceptions" referred to in your response conflict with the intent of our finding and recommendation.

of press releases need to determine

Recommendations #6a, 6b, and 6c

In order

to determine whether the actions you have described in your response are adequate for resolution,

we need to review the documentation for any policies and procedures you may have amended. The changes in the Training Manual you provided are appropriate, but do not address the issue of actions to be taken when firms cannot provide reasonable assurance that adulterated products have been removed from commerce. Additionally, we believe that the policies outlined in the Training Manual should also be issued in a Notice or other format that clearly establishes their status as official FSIS policy.

Recommendation #9b

Please furnish a copy of the Directive outlining the revised preoperative sanitation procedures. We will need details concerning the strengthened provisions of the revised procedures and the internal administrative controls established to ensure that inspectors enforce the revised procedures and delay operations when plants do not maintain acceptable levels of preoperative sanitation. Details concerning the interim measures of product retention, equipment rejection, or use of the Intensified Regulatory Enforcement program, as described in your September 5 response, might provide a basis for resolution. However, we will not be able to close the recommendation until appropriate controls have been established and implemented.

Recommendations #9c and 9d

The corrective actions described in your response will probably be adequate to resolve both recommendations, but we need additional information before we can make that determination. If sections of the Meat and Poultry Inspection Manual were revised in response to recommendations, please provide us with copies of the instructions requiring inspectors to make periodic, in the plant. If

documented reviews of chemicals used

the

proposed regulations have been developed, please provide us with a copy.

C. DOCUMENTATION NEEDED TO CLOSE RESOLVED RECOMMENDATIONS

(Audit recommendations are resolved when agency management and OIG agree on the action to be taken. For each of the following issues, we believe that this agreement has been reached. In your response, you noted several items that would be provided as they became available. For your convenience, we compiled the following list details both the documents you have already agreed to send and the additional data necessary for us to determine when the recommendations can be closed.)

Recommendations #3a, 3c, 3d, 3e, 3f, 3g, and 3h

and

that

In your response, you agreed to provide the final version of draft Directive 10,530.1, "National Residue Program," the 1987 Annual Plan. In addition to these documents, we will need the following items to confirm that the corrective actions taken are consistent with the intent of our findings and recommendations.

Details of the procedures in place to speed publication of annual data summary reports.

A copy of the monthly Swine Sulfa Data report showing

confidence intervals or other conclusions drawn about problem areas.

The revised draft of the Directive modifying procedures to follow the status of investigation of Unidentified Microbiological Inhibitors including instructions for documentation of conclusions and analyses. Additionally, you should provide copies of any other revised Directives, such as the one to strengthen the controls and documentation of review of unusual residue findings referred by the laboratories, if they contain provisions relating to timely analysis of residue monitoring results and documentation of

reviews.

An example of the report developed to reconcile scheduled monitoring sampling and responses.

Common On-Line other documentation

A copy of the statement of work for the
Reference System (CORE) or
explaining how the new system will be used to update the
sampling frame.

Sufficient

details concerning

the

"independent

verification of data entry of all violative samples" to allow us to determine whether

these controls are

of Residues

In addition to the final version of the "National Residue. Program" Directive, we will need either a final draft the interim rule, "Sulfanomide and Antibiotic from Young Veal Calves; Modified "esting Procedures," as cleared by OGC or a copy of the new Calf Certification form, as cleared by OMB. This will allow us to document the inclusion of warnings to producers about the consequences of false statements connection with the Certified Calf Program.

Recommendation #7

in

Please provide documentation of the duties of PARB and details as to how its studies are to be conducted. Additionally, we will need information concerning the audit controls systems developed and implemented to monitor activities and evaluate the degree of accuracy and consistency in policy application. Our review of these

materials will allow us to determine whether the new system will ensure the consistency and accuracy of labeling decisions to the degree necessary to close the recommendation.

Recommendation #9a

In order to confirm our understanding of your new tracking system, please provide us with the instructions for completing FSIS Form 8110-2a. It would also be helpful to include a copy of the revised glossary referred to in your response.