USDA Coronavirus Disease 2019 Funding Engagement 50025-0001-23 (Office of Inspector General, September 2020)
Summary
U.S. Department of Agriculture Office of Inspector General memorandum, USDA Coronavirus Disease 2019 Funding, Engagement 50025-0001-23, dated September 30, 2020, from Gil H. Harden, Assistant Inspector General for Audit, to G. Scott Soles, Principal Deputy Chief Financial Officer. The memorandum states that on May 28, 2020 OIG initiated a non-audit service to identify USDA's COVID-19 funding streams as of May 31, 2020. It states that the FFCR Act and the CARES Act provided more than $47.7 billion to USDA, that the Secretary transferred $6.5 billion from the Commodity Credit Corporation to support the Coronavirus Food Assistance Program, and that the funding sources total $54.3 billion, of which 64.2 percent has gone to the Food, Nutrition, and Consumer Services mission area.
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“USDA Coronavirus Disease 2019 Funding Engagement 50025-0001-23 (Office of Inspector General, September 2020).”
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United States Department of Agriculture
USDA Coronavirus Disease 2019
Funding
Engagement 50025-0001-23
September 2020
OFFICE OF INSPECTOR GENERAL
United States Department of Agriculture
Office of Inspector General
Washington, D.C. 20250
DATE: September 30, 2020
ENGAGEMENT
NUMBER: 50025-0001-23
TO: G. Scott Soles
Principal Deputy Chief Financial Officer
Office of the Chief Financial Officer
ATTN: Annie Walker
Director
Office of the Chief Financial Officer
FROM: Gil H. Harden
Assistant Inspector General for Audit
SUBJECT: USDA Coronavirus Disease 2019 Funding
On May 28, 2020, we initiated a non-audit service to identify U.S. Department of Agriculture’s
(USDA) coronavirus disease 2019 (COVID-19) funding. 1 Our objective was to identify the
funding streams USDA used to respond to the COVID-19 pandemic as of May 31, 2020.
Specifically, we identified the programs, appropriations, and any other funding streams used; and
key controls and mechanisms, including applicable information systems for the identified
programs. To report the various funding streams, we reviewed agency websites, surveyed
Departmental mission area and agency officials, and identified sources of funding from
COVID-19 legislation as well as repurposed appropriations used for COVID-19 relief activities
through May 31, 2020. 2
Congress enacted four public laws in response to the COVID-19 pandemic, two of which
provided USDA with funding: the Families First Coronavirus Response (FFCR) Act on
March 18, 2020; 3 and the Coronavirus Aid, Relief, and Economic Security (CARES) Act on
1
A non-audit service, also known as a consulting service, is a service other than an audit, attestation engagement,
inspection, evaluation, or investigation. A non-audit service consists of tasks or services consistent with auditors’
skills and expertise. Therefore, the data and information provided were not verified or analyzed, and no audit
procedures were performed on them.
2
The Department submitted their spending plan to the Pandemic Response Accountability Committee on
September 3, 2020. The spending plan provided information appropriated by the Coronavirus Aid, Relief, and
Economic Security Act (CARES Act). We are reporting funding appropriated by both the CARES and Families
First Coronavirus Response (FFCR) Acts, as well as general appropriations transferred and repurposed for
COVID-19 response activities. Therefore, the numbers will not be the same.
3
Families First Coronavirus Response Act, Pub. L. No. 116-127, 134 Stat. 178.
G. Scott Soles 2
March 27, 2020. 4, 5 As of May 31, 2020, these two laws provided more than $47.7 billion to
USDA for pandemic relief activities. 6 Additionally, the Secretary transferred $6.5 billion from
the Commodity Credit Corporation (CCC) to support the Coronavirus Food Assistance Program
(CFAP). 7
Finally, the Research, Education, and Economics (REE) and Farm Production and Conservation
(FPAC) mission areas repurposed $47.3 million for purposes related to COVID-19. 8 (See the
figure on the next page.) Other Departmental mission area agencies used some of their regular
appropriations—but did not formally allocate funds—to address expenses related to
COVID-19. Since this engagement identified appropriated or allocated funds, we are not
reporting COVID-19 funding expenses.
These funding sources total $54.3 billion. Of this amount, 64.2 percent has gone to the Food,
Nutrition, and Consumer Services mission area for nutrition programs. FPAC also received
29.5 percent of USDA’s COVID-19 funding to establish and administer CFAP, which was
created to provide assistance to agricultural producers impacted by the effects of the
COVID-19 outbreak. Additionally, the Marketing and Regulatory Programs mission area
received 5.7 percent for the Farmers to Families Food Box Program and salary expenses
associated with the Agriculture and Quarantine Inspection Program. Other mission areas
accounted for the remaining 0.5 percent of the COVID-19 funding. 9 For more detailed
information on how the Departmental mission areas and agencies plan to spend this money,
please see Exhibit A.
4
Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281.
5
In addition to the FFCR and CARES Acts, Congress passed the Coronavirus Preparedness and Response
Supplemental Appropriations Act, 2020, Pub. L. No. 116-123, 134 Stat. 146 (2020), and the Paycheck Protection
Program and Health Care Enhancement Act, Pub. L. No. 116-139, 134 Stat. 620 (2020). Together, these four
statutes authorized approximately $2.4 trillion in Federal spending.
6
The FFCR Act provided the Secretary the authority to allocate additional funds for purposes related to COVID-19.
The Secretary allocated $2.1 billion for the Food, Nutrition, and Consumer Services mission area’s Pandemic
Electronic Benefits Transfer Program, an additional $1 billion for the Marketing and Regulatory Programs mission
area’s Farmers to Families Food Box Program, and an additional $14 billion for the Farm Production and
Conservation mission area’s Coronavirus Food Assistance Program 2. We are not including these amounts in our
funding totals, as they are outside the scope of our work. These allocations were made after May 31, 2020.
7
CCC is a wholly-owned Government corporation created within the USDA by the CCC Charter Act. CCC funds
are used to implement specific programs established by Congress and carry out activities under the broad authorities
of the CCC Charter Act to stabilize, support, and protect farm income and prices; assist in maintaining balanced and
adequate agricultural commodities; and facilitate orderly agricultural commodities distribution. CCC is subject to
the general supervision and direction of the Secretary of Agriculture.
8
The Office of Management and Budget (OMB) issued an exception that allows USDA to repurpose its Federal
assistance awards (in whole or part) to support the COVID-19 response, as consistent with applicable laws. OMB,
Repurposing Existing Federal Financial Assistance Programs and Awards to Support the Emergency Response to
the Novel Coronavirus (COVID-19), Apr. 9, 2020.
9
As part of the CARES Act, Pub. L. No. 116-136, 134 Stat. 281, USDA’s OIG received $750,000 to provide
oversight of USDA funding received in the CARES Act. This is not included in the final total. Additionally, the
CARES Act reimbursed the CCC $14 billion for net realized losses. We are not including this number in the final
amount, as it is a reimbursement for losses already realized. Even though these funds were provided in the CARES
Act, the $14 billion is exempt from use for pandemic-related purposes. However, CCC officials told us that these
funds may or may not be used for pandemic-related purposes and were unable to provide an exact amount of
COVID-19 funding.
G. Scott Soles 3
The data and information contained in this report were obtained from the Office of the Chief
Financial Officer and appropriate Departmental mission area and agency officials. We also
obtained documentation to support the key controls and mechanisms, including applicable
information systems for the programs that received COVID-19 funding, from the mission area and
agency officials. We did not assess or evaluate this information and are not reporting on it.
This report contains information as a non-audit service; it does not provide conclusions,
findings, or recommendations, as we did not evaluate or validate any data or information
G. Scott Soles 4
provided by Department officials. This non-audit service was conducted in accordance with
USDA OIG guidance, which also incorporates the applicable independence standards from
the Government Auditing Standards, American Institute of Certified Public Accountants
standards, and CIGIE Quality Standards for Inspection and Evaluation. All work
performed was not done in accordance with Generally Accepted Government Auditing
Standards or CIGIE Quality Standards for Inspection and Evaluation, except for
independence standards. However, before we performed this non-audit service, we
determined that it would not impair our independence to perform audits, inspections,
attestation engagements, or any other future or ongoing reviews of the subject.
In recent and coming months, OIG will provide oversight for these funds. 10 Please see our OIG
COVID-19 Oversight Plan for more information on our work. To see our progress and the
results of our oversight activities, please visit our pandemic-related reports. 11
10
USDA OIG, OIG COVID-19 Oversight Plan (Apr. 2020), https://www.usda.gov/oig/reports/oig-plan-oversight-
covid-19-funding.
11
USDA OIG, Other Inspector General Reports, https://www.usda.gov/oig/reports/inspector-general-reports.
Exhibit A: USDA COVID-19 Funding by Mission Area and Agency
Mission Area/
Amount Legislative Assistance Eligible
Agency/
(thousands) Source Type Recipients
Program Activities
Farm Production and Conservation
Farm Service Agency (FSA)
Coronavirus $9,500,000 CARES Act direct payments Government—
Food Assistance with Federally-recognized
Program unrestricted Tribal Governments,
use 12 individuals/families,
profit organizations
Coronavirus $6,500,000 CCC Charter direct payments Government—
Food Assistance Act with Federally-recognized
Program unrestricted use Tribal Governments,
individuals/families,
profit organizations
Salaries and $3,000 CARES Act not applicable N/A
Expense (N/A)
Natural Resources Conservation Service (NRCS)
Environmental $25,000 2018 Farm salaries and Government—
Quality Bill 13 expenses, direct Federally-recognized
Incentives payments for Tribal Governments,
Program specified use 14 individuals/families,
anyone/general public
Subtotal $16,028,000
12
“Direct payments with unrestricted use” are financial assistance from the Federal Government provided directly to
beneficiaries who satisfy Federal eligibility requirements with no restrictions being imposed on the recipient as to
how the money is spent. Included are payments under retirement, pension, and compensatory assistance listings.
13
Agriculture Improvement Act of 2018, Pub. L. No. 115-334, 132 Stat. 4490 (2018 Farm Bill).
14
“Direct payments for specified use” are financial assistance from the Federal Government provided directly to
individuals, private firms, and other private institutions to encourage or subsidize a particular activity by
conditioning the receipt of the assistance on a particular performance by the recipient. This does not include
solicited contracts for the procurement of goods and services for the Federal Government.
Mission Area/
Amount Legislative Assistance Eligible
Agency/
(thousands) Source Type Recipients
Program Activities
Food Safety
Food Safety and Inspection Service (FSIS)
Cooperative $33,000 CARES Act salaries and Government—States 16
Agreements with expenses,
States for project grants 15
Intrastate Meat
and Poultry
Inspection
Meat, Poultry, salaries and individuals/families,
and Egg Products expenses, profit organizations,
Inspection provision of other private
specialized organizations
services 17
Subtotal $33,000
Food, Nutrition, and Consumer Services
Food and Nutrition Service (FNS)
Child Nutrition $8,800,000 CARES Act formula Government—States,
Programs grants 18 local, 19 U.S. territories
and possessions;
public/private nonprofit
organizations
Supplemental $15,510,000 CARES Act formula grants, Government—States,
Nutrition project grants, U.S. territories and
Assistance direct payments possessions
Program— for specified
Contingency use, salaries and
Reserve expenses
Supplemental $8,858,000 20 FFCR Act formula grants, Government—States,
Nutrition project grants, U.S. territories and
Assistance direct payments possessions
Program for specified
(Pandemic EBT)
15
“Project grants” are the funding, for fixed or known periods, of specific projects. Project grants can include
fellowships, scholarships, research grants, training grants, traineeships, experimental and demonstration grants,
evaluation grants, planning grants, technical assistance grants, survey grants, and construction grants.
16
Within this report, “States” includes the District of Columbia.
17
“Provision of specialized services” are assistance listings that provide Federal personnel directly to perform
certain tasks for the benefit of communities or individuals. These services may be performed in conjunction with
non-Federal personnel, but involve more than consultation, advice, or counseling.
18
“Formula grants” are allocations of money to States or their subdivisions in accordance with distribution formulas
prescribed by law or administrative regulation, for activities of a continuing nature not confined to a specific project.
19
Includes State-designated Tribes.
20
The FFCR Act appropriated to the Secretary such amounts as are necessary to carry certain provisions of the act.
As of May 31, 2020, the Secretary allocated more than $8.85 billion for the Pandemic EBT Program.
Mission Area/
Amount Legislative Assistance Eligible
Agency/
(thousands) Source Type Recipients
Program Activities
use, salaries and
expenses
Nutrition $200,000 CARES Act project grants, Government—U.S.
Assistance for direct payments territories and
Puerto Rico for specified possessions
American Samoa use
and the
Commonwealth
of the Northern
Mariana Islands
Nutrition $100,000 FFCR Act project grants, Government—U.S.
Assistance for direct payments territories and
Puerto Rico, for specified possessions
American Samoa use
and the
Commonwealth
of the Northern
Mariana Islands
Commodity $450,000 CARES Act formula grants Government—States
Assistance
Program
Commodity $400,000 FFCR Act formula grants Government—States
Assistance
Program
Food $100,000 CARES Act direct payments Government—States,
Distribution for specific use, Federally-recognized
Program on project grants, Tribal Governments;
Indian sale, exchange, public nonprofit
Reservations or donation of organizations, other
property and public organizations,
goods non-Government
organizations
Special $500,000 FFCR Act formula grants, Government—State,
Supplemental project grants local, and
Nutrition (discretionary) Federally-recognized
Program for Governments, U.S.
Women, Infants, territories; private
and Children nonprofit organizations
Subtotal $34,918,000
Mission Area/
Amount Legislative Assistance Eligible
Agency/
(thousands) Source Type Recipients
Program Activities
Marketing and Regulatory Programs
Agricultural Marketing Service (AMS)
Food Box $3,000,000 21 FFCR Act sales, exchange, nonprofit and
Distribution or donation of governmental
Program property and organizations 22
goods
Marketing $45,000 CARES Act N/A N/A
Services—
Salaries and
Expenses
Animal and Plant Health Inspection Service (APHIS)
Salaries and $55,000 CARES Act N/A N/A
Expenses—
Agriculture
Quarantine and
Inspection
Program
Subtotal $3,100,000
Natural Resources and Environment
Forest Service (FS)
Capital $26,800 CARES Act N/A N/A
Improvement and
Maintenance
Forest and $3,000 CARES Act N/A N/A
Rangeland
Research
Research Joint Venture and Cost direct payments Government—States, 23
Reimbursable Agreements for specified Federal; other
use public/private
organizations
National Forest $34,000 CARES Act
System—
Recreation
Heritage and
Wilderness
21
The FFCR Act appropriated to the Secretary such amounts as are necessary to carry out certain provisions of the
act. As of May 31, 2020, the Secretary allocated $3 billion for the Food Box Distribution Program.
22
Food banks, food pantries, churches, schools, and community groups.
23
Public institutions of higher education and hospitals.
Mission Area/
Amount Legislative Assistance Eligible
Agency/
(thousands) Source Type Recipients
Program Activities
Law Enforcement Agreements cooperative Government—general,
agreements States, 24 local, 25 State
cooperators. 26
Partnership Agreements direct payments Government—general,
for specified State, 27 local, 28
use, direct Federally-recognized
payments for Tribal Governments,
specified use U.S. territories and
(cooperative possessions; public
agreements) nonprofit
organizations, 29 other
public organizations,
private nonprofit
organizations, 30 quasi-
public nonprofit
organizations, Native
American
organizations 31
Schools and Roads—Grants to States cooperative Government—States,
agreements, local, 32 U.S. territories
formula grants and possessions
Wildland Fire $7,000 CARES Act
Management
Cooperative Forestry Assistance project grants, Government—States, 33
formula grants local, 34 U.S. territories
and possessions; private
nonprofit
organizations 35
24
Public institutions of higher education and hospitals.
25
State-designated Tribes, excludes institutions of higher education and hospitals.
26
Any State or political subdivision (that is, local governments).
27
Public institutions of higher education and hospitals.
28
State-designated Tribes, excludes institutions of higher education and hospitals.
29
Institutions of higher education and hospitals.
30
Institutions of higher education and hospitals.
31
Tribal groups, cooperatives, corporations, partnerships, associations.
32
State-designated Tribes, excludes institutions of higher education and hospitals.
33
Public institutions of higher education and hospitals.
34
State-designated Tribes, excludes institutions of higher education and hospitals.
35
Institutions of higher education and hospitals.
Mission Area/
Amount Legislative Assistance Eligible
Agency/
(thousands) Source Type Recipients
Program Activities
Partnership Agreements direct payments Government—general,
for specified State, 36 local, 37
use, Federally-recognized
direct payments Tribal Governments,
for specified U.S. territories and
use possessions; public
(cooperative nonprofit
agreements) organizations, 38 other
public organizations,
private nonprofit
organizations, 39
quasi-public nonprofit
organizations, Native
American
organizations 40
Subtotal $70,800
Research, Education and Economics
National Institute of Food and Agriculture (NIFA)
Agriculture and $21,100 discretionary project grants Government—Federal,
Food Research funds 41 State, 42 public
Initiative— nonprofit
Foundation and organizations, 43
Applied Science individuals/families,
Program profit organizations,
quasi-public nonprofit
organizations
Small Business $1,200 discretionary project grants small businesses (less
Innovation funds 44 than 500 employees)
Research
Program—Phase
I
Subtotal $22,300
36
Public institutions of higher education and hospitals.
37
State-designated Tribes, excludes institutions of higher education and hospitals.
38
Institutions of higher education and hospitals.
39
Institutions of higher education and hospitals.
40
Tribal groups, cooperatives, corporations, partnerships, associations.
41
Competitive, Special, and Facilities Research Grant Act, Pub. L. 89-106 (section 2), amended through
Pub. L. 115-334 (August 4, 1965).
42
Public institutions of higher education and hospitals.
43
Institutions of higher education and hospitals.
44
National Defense Authorization Act for Fiscal Year 2017, Pub. L. 114-328, 1130 Stat. 2001(enacted
Dec. 23, 2016).
Mission Area/
Amount Legislative Assistance Eligible
Agency/
(thousands) Source Type Recipients
Program Activities
Rural Development
Rural Business Service (RBS)
Business and $19,885 CARES Act guaranteed/ Government—
Industry CARES insured loans Federally-recognized
Act Program Tribal Governments,
public bodies, 45
nonprofit/profit
organizations,
cooperative
organizations 46
Salaries and $615 CARES Act N/A N/A
Expense
Rural Utilities Service (RUS)
Distance $24,250 CARES Act project grants Government—
Learning and Federally-recognized
Telemedicine Tribal Governments,
Grants States, local
government entities,
nonprofit/profit
organizations, consortia
of eligible entities
Rural e- $97,000 CARES Act project grants Government—
Connectivity Federally-recognized
Pilot Program Tribal Governments,
States, local or any
agencies, subdivisions,
instrumentalities, or
political subdivisions
thereof, U.S. territories
or possessions;
cooperatives,
nonprofits, or mutual
associations; profit
corporations or limited
liability companies
45
A “public body” is a municipality, county, or other political subdivision of a State; a special purpose district; a
Tribe on a Federal or State reservation or other Federally-recognized Tribe; or an organization controlled by any of
the above.
46
A “cooperative organization” is an entity that is legally chartered as a cooperative or an entity that is not legally
chartered as a cooperative, but is owned and operated for the benefit of its members, with returns of residual
earnings paid to such members on the basis of patronage.
Mission Area/
Amount Legislative Assistance Eligible
Agency/
(thousands) Source Type Recipients
Program Activities
Salaries and $3,750 CARES Act N/A N/A
Expense
Subtotal $145,500
Trade and Foreign Agricultural Affairs
Foreign Agricultural Service (FAS)
Salaries and $4,000 CARES Act N/A N/A
Expense
Subtotal $4,000
Total COVID-19 $54,321,600
Funding
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