SUPPLY VERIFIED PROCESS MANUAL

Transcription

1 Page 1 of 53 IMI Global s Offsite Source and Age Verification System for Cow-Calf Producers SUPPLY VERIFIED PROCESS MANUAL

2 Table of Contents Document No: SVManual Page 2 of 53 Table of Contents... 2 SECTION #1: OVERALL PROCESS AND SUPPLIER EVALUATION PROCEDURE... 3 SECTION #2 DEFINITIONS.7 SECTION #3: BACKGROUND INFORMATION... 9 SECTION #4: PRODUCER SOURCE AND AGE APPLICATION (KIT100) SECTION #5: SCREENING THE KITS SECTION #6: UPLOADING THE KITS SECTION #7: KIT AND RECORDS REVIEW BY AN AUDITOR SECTION #8: PRODUCER AND FEEDLOT FOLLOW-UP AUDIT CALLS BY AN AUDITOR...27 SECTION #9: ISSUING SUPPLY VERIFIED CERTIFICATES SECTION #10: PRECERTIFICATION POLICY AND PROCEDURE SECTION #11: PROGRAM COMPLIANT TAG AND ANIMAL ID POLICY SECTION #12: COMPLETE PROGRAM COMPLIANT TAG LIST, SPECIFICATIONS AND PRICING SECTION #13: IMPORTANCE OF APPLYING TAGS CORRECTLY AND COMPLETING THE TAG DISPOSITION REPORT SECTION #14: SUPPLY VERIFIED CO-MARKETERS AND CO-DISTRIBUTERS SECTION #15: CHANGING A SUPPLY VERIFIED CERTIFICATE OF APPROVAL SECTION #16: FREQUENTLY ASKED QUESTIONS (FAQ) SECTION #17: CONTACT INFORMATION... 53

3 Page 3 of 53 SECTION #1: OVERALL PROCESS AND SUPPLIER EVALUATION PROCEDURE The purpose of this manual is to give the Supply Verified Team all of the information that you need to conduct a successful audit to IMI Global s standards. Below is a breakdown of the Supply Verified Team, which gives an overall description of how the IMI Supply Verified Process works. Supply Verified Team Supply Verified Audit Manager: Maintains a general oversight of the SV 2 system, making sure all standards and requirements of the program are being met, and is the first contact for all desk auditors with questions or problems with the audits. Supply Verified Process Manager: Reviews kit upon receipt from producer to see if complete, contacts producer if kit is incomplete, creates groups in SV and uploads kit and supporting documents to those groups, assigns the uploaded desk audits, issues approval certificates, and places tag orders. Auditor: Desk auditor that completes the audit with the producer in its entirety. Ten Percent of the audits completed by the auditors will have a review by the SV Audit or Process manager.

4 Page 4 of 53 Standard Operating Procedure IMI Global s USVerified SupplyVerified USDA-Approved Offsite SUPPLIER EVALUATION PROCEDURE PURPOSE: To establish: 1. a procedure for IMI Global s trained offsite/desk evaluators explaining how to conduct a SupplyVerified evaluation for IMI Global s Process Verified Umbrella to ensure the supplier is: a) qualified and b) has in place processes, procedures and records to verify source and/or age of cattle. 2. a procedure that details how onsite evaluations are conducted. DEFINITIONS: Major non-conformance a deficiency that jeopardizes the integrity of the program and prevents the supplier/evaluator from being listed as an approved supplier/evaluator. All deficiencies must be cleared before being listed as an approved supplier/evaluator. Minor non-conformance a deficiency when compared to the requirements of the standard, implementation and/or the supplier s procedure. The evaluation can be continued, however the supplier/evaluator must provide corrective actions (how they will address the problems) and an estimated time line for implementation of the corrective action. Observation a finding, that if not addressed could result in a non-conformance and should be discussed with the supplier as part of the audit and closing meeting. An observation could become a non-conformance if it isn t addressed. SupplyVerified IMI Global s USDA-approved offsite/desk supplier evaluation program for source and age claims. SupplyVerified is specific to cow/calf suppliers (the original source). ASSOCIATED MATERIALS: USVerified TM, SupplyVerified Supplier Evaluation System (KIT100, Auditor Checklists and Approved Supplier List (IMI s Public Approved Supplier List located at or client s private Approved Supplier List, this can be accessed by IMI Global staff, but is not available on the public listing). ON-SITE ONLY: USVerified Onsite Checklist. RESPONSIBILITY: IMI has the responsibility detailed below. Trained Supply Evaluator Criteria Only trained supply evaluators (training must be documented) can conduct supply-side evaluations. The evaluator must: Be independent of the program they are reviewing, Be fair, ethical and completely truthful when conducting the evaluation, Be confidential with their evaluation findings and only communicate with the Management Team the results, Use an evidence-based approach, and, Not take anything with them from the evaluation except for the Supply Evaluation Checklist during an onsite evaluation. SupplyVerified s Offsite Evaluation Tools: Supplier provided records and completed KIT100. Auditor Checklists Evaluation Criteria: Each group of cattle marketed by USVerified TM, SupplyVerified Cow/Calf suppliers must receive a desk and phone evaluation using the standardized SupplyVerified Process and System.

5 Document No: SVManual Page 5 of 53 The criteria used is detailed in KIT100 and the questions asked and documented during the interview (all based on the USDA Process Verified Program supplier evaluation requirements established in ARC1001, ARC 1030J Instructions, and Live Animal Production Record Requirements and Guidance Document). Re-evaluation Criteria and Frequency On-site (validation of the offsite supplier evaluation system): A minimum of five (5) SupplyVerified suppliers (approved through SupplyVerified) or 3%, which ever is greater, is evaluated annually onsite. The number of SupplyVerified suppliers to be evaluated is based on the number of suppliers on August 1 st, and 3% must be evaluated by the next August 1 st. IMI s Public Listing and Private Listings are combined to determine the number of suppliers. SupplyVerified on-site evaluations are randomly selected as on-site evaluators travel within IMI s regions of service. SupplyVerified EVALUATOR REQUIREMENTS: All SupplyVerified evaluators are trained as follows: 1) Before you will be allowed to evaluate without direct supervision, you will: a. Participate in general training (training includes: the standards, IMI s evaluation criteria and document/record control.) b. Participate in at least: i. one supplier evaluation where you are observing (listening to) a trained IMI supply evaluator; and ii. one supplier evaluation where you are being observed. c. Successfully pass the written exam. d. Have all the materials necessary to conduct the evaluation. e. Exhibit confidence with IMI s evaluation system and client communication. f. Have three (3) consecutive evaluations conducted with minimal revisions/questions/suggestions. g. Agree to be evaluated/critiqued at least once annually. h. Agree to report all customer comments in writing within 15 days of receiving the comment. 2) When you have met the above requirements, you will be able to conduct the evaluation in its entirety. 3) Evaluator re-training is held as needed (e.g., new standards issued, revised requirements, etc.). PROCEDURES: IMI s Web-Based USVerified TM, SupplyVerified Supplier Desk/Phone Evaluation: 1. Using the SupplyVerified Evaluation SOP conduct supplier evaluation using the SV Audit Checklist. 2. This review is simply to verify the claims and documentation the supplier fills out. It is not an inquisition beyond the scope of the claims they are making. 3. Review records to support animal source, animal age, and head counts. Examples include: calving books, sales sheets, invoices, herd management programs (electronic or otherwise), etc. 4. Document evaluation findings in SV Audit Checklist. 5. Contact supplier with questions % of suppliers are contacted. 7. Request supplier explains processes, procedures and records used to verify calf source and/or age. 8. Review evaluation findings with supplier and inform supplier of approval status. 9. Finalize SV Audit Checklist, place audit into correct status, and issue Certificate, if applicable % of approved desk audits will have a second review by a manager to ensure all requirements are met. 11. Onsite Evaluations: 1. Suppliers to be evaluated are randomly selected as the on site evaluators travel within IMI s regions of service. 2. Contact the supplier and set up a convenient time to conduct the onsite evaluation. 3. This review is simply to verify the claims and documentation the supplier fills out. It is not an inquisition beyond the scope of the claims they are making. 4. Be as friendly as possible. 5. Review prior to going onsite: a. The SupplyVerified Evaluation b. the supplier s information submitted, and, c. the SV Audit Checklist.

6 Page 6 of Review with the supplier the checklist you will be using during the onsite evaluation. 7. First conduct an interview with supplier to understand the scope of the operation as it applies to accurately representing head counts and animal source and/or age. 8. Request supplier explains processes, procedures and records used to verify calf source and/or age. 9. Review records to support animal source, animal age, and head counts. Examples include: calving books, sales sheets, invoices, herd management programs (electronic or otherwise), etc. 10. Document evaluation findings on the SUPPLY3CHK Review evaluation findings with supplier. 12. Complete SUPPLY3CHK100, and submit to Audit Manager or designee for review 13. Audit Manager or designee will review SUPPLY3CHK100 and upload to the group in SV If any discrepancies are found, supply verified manager will be notified. Pre-Certification Evaluations Desk/Phone Evaluation: 1. Use IMI s SupplyVerified Evaluation to evaluate the pre-certification request. The request must include a completed KIT100 and the first calf record for the current calving group, or provide historical records to preverify # of tags needed. 2. When evaluation is completed the supplier is moved to the Pre-Certifying Status in 3. Tags are distributed by marketing group (not supplier) shipped direct from the manufacturer (Allflex or Destron). a. Tag Manifest and Disposition Report is included with Allflex IMI EID tag orders. An IMI employee sends the supplier a Tag Manifest and Disposition Report for all Destron EID tag orders. 4. When the appropriate records verifying the groups head count and defining the calving season (minimum first calf born and season ending date to define season) are returned to IMI, IMI completes the evaluation of the supplier and changes the status of the audit to Approved and allocates the EID tags. a. IMPORTANT: Unused tags must be destroyed or clearly identified as unused in order to allow IMI to remove them from the allocation system. 5. Once approved, the appropriate approved supplier lists is updated. CORRECTIVE ACTION STEPS: NOTE: Upload final reports to the supplier s file. 1. SupplyVerified Evaluator: If major evaluation non-conformances are identified you will be immediately retrained and will be required to contact a supervisor immediately following a predetermined number of evaluations before you are allowed to return to evaluating independently. All non-conformances are reviewed, documented and handled on a case-by-case basis. The appropriate corrective actions are documented and implemented immediately. 2. SupplyVerified Desk/Phone Evaluation: If major non-conformances are identified during the evaluation, inform the supplier they will not be listed as an approved supplier. If any minor non-conformances are identified during the evaluation process inform the supplier and move forward with the evaluation, but request the supplier provide corrective actions (how problems will be addressed) and an estimated time line for implementation of the corrective action. Review all non-conformances with the supplier. Elements to be evaluated include: a) Identifying nonconformities (including customer complaints), b) Determining the causes of nonconformity, c) Evaluating the need for actions to ensure that nonconformities do not recur, d) Determining and implementing the corrective action needed, e) Recording results of action taken, and, f) Reviewing of corrective action taken. 3. SupplyVerified On-site Evaluation:

7 Document No: SVManual Page 7 of 53 The onsite evaluator must send IMI an Audit Report once the evaluation is completed. The Audit Report details all evaluation findings (NCs) and establishes when the supplier needs to supply IMI Global with corrective actions. The onsite evaluator contacts the supplier if corrective actions are not submitted as required. The onsite evaluator is required to review and subsequently clear via (if CAs are adequate) all NCs identified in the Audit Report. Copy the Audit Division Manager on this correspondence. SECTION #2: DEFINITIONS Approved Locations: This is a location (ranch, backgrounder, feedlot, etc ) that has been approved by a USDA Process Verified (PVP) or Quality System Assessment (QSA) Program for source and age. These are programs like IMI Global. This term becomes important when discussing identification and movement requirements of cattle. Calving Group: This is an IMI Global term, used to separate groups of calves within a given calving season. For example, early spring heifers born (1/20/08 3/20/08) and late born heifers (3/21/08 4/20/08). Calving Season: This is a timeframe ( / / to / / ) that encompasses when all calves were born. Often times referred to as spring and fall. Co-Brands/Co-Marketers: This is an organization that wants to use IMI s Source and Age Verification Process (they want us to conduct the audits), but they have the direct relationship with the producer. In this instance we will co-brand (put their name and/or logo) on a KIT100 for them. Each co-brand may have specific tag requirements, and a specific approved supplier listing. This also describes a group that may want to promote SupplyVerified in marketing materials. Co-Distributor: This describes an Order Buying Group or a Feedyard that wants to use IMI s Source and Age Verification Process (they want us to conduct the audits), but they have the direct relationship with the producer. In this instance we will put their name on a KIT100 for them. They may have specific approved supplier listing requirements. Hold: Groups are placed into hold status if the audit has been conducted and all requirements have been met, but the producer does not want to purchase PCTs and does not yet know the destination of the cattle. A certificate is not issued for cattle in the Hold status. Once IMI is notified of the destination, we will verify that the destination is an approved location, change the status, etc. Incomplete Hold: Groups are placed in this status if IMI does not have necessary information to approve the cattle. Once that information is gathered and evaluated, the audit will be placed into the appropriate status and a certificate will be generated if it is approved.

8 Page 8 of 53 Auditor: This is an IMI Global trained auditor that has the authority to conduct audits in their entirety, making a final decision regarding a producer s calving group approval status, and IMI Global s Cow/Calf Source and Age Approved Supplier List. Public Approved Supplier List: This is a complete listing of all producers that have been approved by SupplyVerified for source and age on their groups of cattle that are not on a private listing. This is located at under the IMI s Approved Supplier List link. IMI has other verification programs, so make sure you are looking at the Ranch Source and Age List if you are looking for a specific name. Private Approved Supplier List: Some of our Co-Brands and Co-Distributors are paying for the Source and Age Audit or they have a unique relationship with their contacts, and they request that we maintain their approved producer s on a private listing. ALL of the approved producers are housed in SV2.Supplyverified.com, but only our straight IMI customers are listed on our public approved supplier listing. The other s can be accessed by the IMI office staff. Program Compliant Tags (PCT): This is a definition the USDA uses to describe tags that are one-time use, tamper-evident, non-repeatable and uniquely numbered. Examples include: EID/RFID and serially numbered visual tags or barcoded tags. If cattle are going to move to an unapproved location they must wear a Program Compliant Tag prior to leaving the ranch in order to maintain their source and age approved status. Fail: This status means the producer has NOT met all of the requirements and is not recommended for approval at the conclusion of the desk audit. Approved: This status means the producer has met all of the requirements and additional information is not needed. A certificate of approval will be issued to the producer for the calving group. PreCert: This status allows IMI to send out EID tags to the producer prior to collecting a last calf born date, usually done when producer is still calving, so the calves can be tagged shortly after birth. The producer must have completed the kit 100, sent in head count support, and either last years calving records, or the beginning of the season he is verifying. The desk audit is conducted and if cattle are found to be verifiable, EID tags will be sent to the producer. No certificate is issued, and tags are not allocated as Approved. Once we receive the necessary records needed to verify, we will place the audit into Approved status, issue the certificate, and make the EIDs applied program compliant. Source and Age Kit (KIT100): This is the document IMI sends to producers to begin their source and age verification process. This document is used to capture all information that is required for the evaluation/audit process to ensure they meet all USDA requirements.

9 Page 9 of 53 SV2.SupplyVerified.com: This is an online-website, Internet accessible system that stores all of the producer s information (KIT100), calving records, etc. It is also the location where SupplyVerified auditors evaluate, conduct and record all audit information. It is a secure, password protected site, accessible only to trained IMI Global staff. Information on this site CAN NOT be shared with anyone outside of IMI Global staff and/or the USDA during a USDA Process Verified Audit of IMI Global. Tag Disposition Report: This is a form that is sent to a producer ordering program compliant tags (PCTs) to account for all tags applied, unused, lost or destroyed. The producer is required to maintain a copy in their records and is requested to send a copy to IMI. Unapproved Locations: This is a location that has not been approved by any USDA approved company to handle source and age verified cattle. This term becomes important when discussing identification and movement requirements of cattle. Withdrawn: When the audit has been uploaded into the SV2 system, but the auditor discovers during the desk audit that the group is not needed or that two groups could be combined into one, the unneeded group will be placed into Withdrawn. This group will remain in the system under the withdrawn status for our records, but will no longer be collecting data or be evaluated. SECTION #3: BACKGROUND INFORMATION This section goes through the basic requirements to become source and age verified by IMI Global. What is required to be source and age verified? SupplyVerified does not approve the ranch/farm as a location, it approves individual Calving Groups for that customer. IMI can verify all calves from an entire calving season (for example, their spring calving season); separate calving seasons, and/or groups within those calving seasons. For example, a producer may want to verify their steers separate from their heifers, spring calves from fall calves, or groups being marketed at different locations. If a producer wishes to verify multiple groups of cattle with a different date of birth for each group, then each group must be identified differently (for example, a different colored tag, a different brand, a different ear notch location). Just running cattle in separate pastures does not always qualify (this is always handled on a case-by case basis).

10 Page 10 of 53 All specific cow/calf requirements are detailed in the KIT100 (the Kit is inserted below this section) How does a producer enroll? A producer must send a completed Source and Age Kit and all required documentation to IMI Global (the fax, and mailing information are on the Kit). All of this information is detailed on the Source and Age Kit (KIT100). All information required on the kit must be completed. The Source and Age Kit (KIT100) is in the next section. Components of the Kit Include: KIT100, Contract and Ranch Farm Shipping Record (when necessary).

11 SECTION #4: PRODUCER SOURCE AND AGE APPLICATION (KIT100) Document No: SVManual Page 11 of 53

12 Page 12 of 53

13 Page 13 of 53

14 Page 14 of 53

15 Page 15 of 53

16 Page 16 of 53

17 Page 17 of 53

18 Page 18 of 53 SECTION #5: SCREENING THE KITS This section explains how the kits are screened for completeness prior to uploading the kits. This step is conducted by the Office Administrative Team. This is a list of all the of the documents that must be received from the producer as part of the KIT submission process 1. The Supplier Profile Page 2. A Signed Contract 3. Calving Records (Details of acceptable calving records are below) 4. Records to support the Head Count the producers wishes to verify Complete the Screening Check-list Form (SVSC100). An example of the checklist is shown on the next page. What are acceptable calving records? 1. We must receive a copy of their calving records-- the method of original recording is preferred. If the first location they enter birthdate information is a computerized system, then that is acceptable. a. Examples include: a notebook, Red Book, calendar, journal, spreadsheet etc. b. NOTE: if the producer submits a calendar or journal and the first date of birth is the only recorded event, this isn t acceptable. It must be authentic it must be apparent that this is the way they keep records. Therefore, on the calendar they should have other events records (bull turn-out dates, branding dates, rainfall, pasture movements, family activities, etc ) 2. The calving dates must be recorded in a Month/Day/Year format 3. If a producer maintains a calving book, we need copies of the pages in the calving book that show the first and last calves in each group to verify. If he maintains individual calving records, the pages must show the individual animal date of births. What are acceptable records to support head counts? 1. Pregnancy (Preg) Check Records 2. Artificial Insemination (AI) Records 3. Marketing Receipts or Contracts 4. Vaccination Records or Receipts 5. Brand Inspection Papers 6. Receiving Invoice from Feedlot and/or Buyer 7. Pasture tallies or branding/working tallies 8. Cow Inventories

19 Page 19 of 53 If a producer has submitted questionable records or incomplete information, questions like the following should be asked by the screener when the producer is contacted. Example questions to verify authenticity of records include: 1. How were the calving records originally recorded? 2. Were you documenting the dates of calves as they were born? If not how did you do it? 3. If the producer says that calving records were not kept, then apologize nicely to the producer and inform him that we will not be able to verify his calves, because we must have actual calving records. Inform him that he will not be charged and explain to him what records he needs to keep in order to be eligible next year. If a producer is declared ineligible then, (1) Put the Screening Check-list Form (SVSC100 ) with the application (KIT100) that the producer submitted and (2) Place the withdrawn audit in the Withdrawn Folder, (3) Make sure Accounting is aware of any billing changes if applicable. 4. Often times a producer will ask if bull turn-out records or A.I. records will work, and NO they will not we must have actual calving records.

20 Supply Verified Screening Checklist Document No: SVManual Page 20 of 53 Date Received: Co-Marketer/Co-Distributor: Ranch/Producer Name: Yes Notes Supplier Profile: Signed Contract: Actual Calving Records: Head Count Support: Back Verification Info: Date shipped: Number of animals: Animal ID: Shipper: Receiver: Process as: RUSH Number of Tags: Needed by Date: Notes (Ex: Dates, calls made): Method of Payment (example: Producer, Feed Yard, Backgrounder, etc.):

21 SECTION #6: UPLOADING THE KITS Document No: SVManual Page 21 of 53 If information is complete (see section #3) the Source and Age Kit is uploaded to the SV2.SupplyVerified.com website by the IMI Global SupplyVerified Office Team. 1. Scan the SupplyVerified Kit (KIT100) and records to an (to the Administrator responsible for this task) to put into PDF form. 2. Save the electronic file once received by the producer s/ranch name. 3. Go to 4. Enter your username and passcode 5. Upload the producer Kit, Contract and Records submitted. (If you have questions regarding the use of the Supply Verified website, refer to the SV2 training program) a. If there are more than one marketing group, create a New Group for each one b. If it is a RUSH group, designate RUSH level c. If a producer is a new producer, create a new customer profile in the system. 6. Create a hard copy file for producer and maintain in a monthly boxes in office.

22 Page 22 of 53 SECTION #7: KIT AND RECORDS REVIEW BY AN AUDITOR A Trained IMI Global SupplyVerified Auditor reviews the KIT100 submitted by the producer, the calving records submitted, head count support and/or inventory records, etc (all records submitted with the KIT) at SV2.SupplyVerified.com. 1. Go to 2. Enter your assigned username and passcode Audit Assignment: Audits are assigned to the auditors on a daily basis by a manager after uploading them to the SupplyVerified system. BEGIN WORKING THE AUDIT 1. Review the producer s KIT100, checking profile information for contact information, any previous certification numbers, calves sold, the method of identification used on the cattle, and any information regarding purchased cattle. 2. Look at the contract, checking that it is signed and dated. 3. Look through the calving records and all supporting documents. Find the first calf born date and last calf born date, or the date being used to define the calving season, and check it against the dates that the producer noted on the calving group page of the KIT100. If the dates are different, then it must be discussed with the producer during the follow-up call and noted on the SV Audit Checklist (see example on next page). Verify that you can see a year on the calving records and if not make sure to ask the producer during the follow-up to verify that the records submitted are for the correct year. Review and document all supporting documents and head count support on the SV Audit Checklist. 4. Determine if it is a producer working through one of our Co-Marketing/Co-Brand relationships. Determine if that partner requires a specific tag. If you are unsure go to the Co-Brand and Co-Distributor Section of this manual. 5. Complete as much information as possible before contacting the producer.

23 Page 23 of 53

24 Page 24 of 53

25 Page 25 of 53

26 Page 26 of 53

27 Page 27 of 53 SECTION #8: PRODUCER AND FEEDLOT FOLLOW-UP AUDIT CALLS BY AN AUDITOR CALLING THE PRODUCER The producer is contacted to review and verify all information submitted to IMI Global. 1. Prior to calling the producer have all of the questions you need to ask assembled, and all information handy, so that you don t forget to ask them a critical question. You can use your SV Audit Checklist for this purpose. 2. Key information includes: a. Have the calves left the ranch? Have they EVER left the ranch? b. Find out if the producer wishes to purchase Program Compliant Tags. If they don t know explain to them the requirements of approved versus unapproved locations and/or specific Co-Brand tag requirements. c. If the producer does not want to purchase PCT s make sure the calves are going directly to an approved location. d. If the destination is not known, then the audit will stay in a Hold status until the producer notifies IMI of the destination or purchases PCT s. If the Co-Brand requires a specific tag, this must be applied as well at the source of origin. e. If the producer is purchasing a PCT: f. Verify that the information on the tag order form is correct. 3. If the cattle have left the ranch of origin, check to see if the producer knows where the cattle went and approximately when they left the ranch. At this point the audit is a different audit classification and requires additional follow-up information. 4. Have the IMI phone number available for the customer, and tell them that it is important that they provide us with customer feedback about their experience. They can call the office or go to the website and provide anonymous feedback if this makes them feel more comfortable. Below is the Producer Contact Script This gives you specific information regarding how to call the producer 1. Contact the producer 2. Remember they are typically unfamiliar with this process, so it is important that you be very nice and helpful through this process 3. Introduce yourself as a representative of IMI - make sure they understand your name 4. Tell the producer you are calling regarding their application for Source and Age Verified Calves 5. Now, use your SV Audit Checklist as a guide to ask the appropriate questions of the producer during your follow-up call. All of the information must be recorded. 6. Let them know you are taking notes as the conversation proceeds - so you accurately record their information 7. Retrain producer where needed (for example, there may be a more acceptable way to identify the 2 nd calving season).

28 Page 28 of Thank the producer for their time and inform them of the outcome of the evaluation. 9. Again, make sure you record all of the conversation on the SV Audit Checklist BACKVERIFICATION PROCEDURES 1. If you are verifying information on cattle after they have left the ranch of origin, this requires direct communication with the approved backgrounder or feedlot location. 2. Use the SV Audit Checklist Feedlot Section to determine what questions need to be answered by the Feedlot or Backgrounder. 3. All back verification groups must meet the USDA BV record requirements. The BKVERSHIP100 may be used to record the necessary information. See an example of the form on pg. 17 of this manual. a. This document must be completed and retained by the ranch of origin b. Ranch records can be used in lieu of the BKVERSHIP100, but must contain the following information: i. Date shipped ii. Number of animals in the shipment iii. Animal identification iv. Name of the shipper v. Name of the receiver vi. Bill of Sale, if applicable 1. Date of sale 2. Number of animals sold 3. Name of seller 4. Name of buyer 4. If cattle were received by the feedlot or backgrounder on different dates from the same ranch location that is seeking approval get all of the following information: a. Dates b. Head Counts Received into the Feedlot c. Head Counts Still on Feed (for example they may have some that have died or they have sold elsewhere) d. Also get the sex of the group, if known e. And any other information deemed pertinent at the time of the audit 5. Find out ALL LOCATIONS where the cattle moved. It is critical that we know if the cattle moved through a salebarn, backgrounder, etc because cattle must move through approved locations if they have not been approved at the source of origin and are wearing Program Compliant Tags. 6. Get specific details regarding ALL of the identifiers on the cattle (for example, brands, eartags, etc ). If they don t know, the audit can not go any further until they do.

29 Page 29 of We also need all of the feedlot identifiers used on the cattle. Therefore, you need to collect the Feedlot or Backgrounder Lot Numbers and the information that is written on each tag. Also find out all of the tag colors. COMPLETING THE AUDIT Transfer all information received from the producer and feedlot from the SV Audit Checklist to SupplyVerified.com, by uploading the SV Audit Checklist to the specific audit, entering the necessary data into the group on Supply Verified, and assigning a risk level using the guidelines below. Assigning Risk Level: 1. Assign Risk Level to Audit using Guidelines Below: a. Low and Moderate risk level are approvable audits. High risk audits will be withdrawn prior to uploading the audit or will be failed upon completion of audit. i. Low Risk: 1. Individual Calving Records in calving book or computer records 2. No purchased cattle on ranch of origin other than breeding stock 3. Cattle to be verified have not left ranch of origin 4. Calendar/Journal calving records with detailed ranch records 5. Vaccine/Vet receipt for cow vaccine or cow work done 6. More than one form of ID on cattle to verify ii. Moderate Risk: 1. Calendar/Journal first and last calf calving records with minimal ranch detail 2. Vaccine receipt for calf vaccine is only head count support 3. Only one ranch ID on cattle to verify 4. Audit is a back verification 5. Ranch has more than one calving season or calving group to verify 6. Producer does not monitor the cattle on a daily basis 7. Producer runs purchased and home raised cattle on ranch with differing ID 8. Producer has purchased cattle in a back grounding operation on the ranch 9. Cattle have left home ranch and went to leased property managed by producer without PCTs iii. High Risk: 1. Producer has purchased and home raised cattle on ranch and there is no ID difference between them 2. Producer has multiple calving seasons with no ID or location difference 3. Producer calves year round without individual ID s tied to an individual date of birth

30 Page 30 of Producer does not keep calving records in month/day/year format 5. Cattle to verify have left the home ranch and moved thru an unapproved location without PCTs SECTION #9: ISSUING SUPPLYVERIFIED CERTIFICATES Once audit is placed into Approved status, a Source and Age Certificate can be created. There are 3 types of certificates, described below. a. Group Certificate-cattle are wearing EID tags b. Shipping Certificate-cattle are moving direct from ranch to approved location. c. Receiving Certificate-cattle are approved as a back verification If the audit is approved, the approval status is automated through SV2.SupplyVerified.com and a certificate is generated and populated in SV2.SupplyVerified.com for the SupplyVerified Office Team to issue. The auditor creates the certificate and it is sent it to the producer and buyer (if applicable) by the auditor or the managers. If the producer orders Program Compliant Tags (PCTs), a tag order is automatically generated through SV2.SupplyVerified.com (based on the number of head that were verified and approved). Section #12 goes through the detail of Program Compliant Tags, and has a complete list of Tags and their Prices. A tag disposition report, tag application instructions and other documents are sent along with the tags direct from the manufacturer. These documents are included in the next section. Often times a producer will have questions with regards to applying the tags correctly. On the next few pages you will find the forms sent out with each tag order, and examples of each of our program certificates. NOTE: A producer can only order the number of tags for the cattle approved via the audit. If they want replacement tags, the rule of thumb is 5% over the approved head count. This is done on a case by case basis after consulting a manager.

31 Page 31 of 53

32 Page 32 of 53

33 Page 33 of 53

34 Page 34 of 53

35 Page 35 of 53

36 Page 36 of 53 Supply Verified Group Certificate This certificate is used: 1. For group approval and is specific to individual group information 2. This is the certificate that is used for all Offsite source and age group audits 3. This certificate can also be used for other claims when a supplier requests a certificate specific to an individual group

37 Page 37 of 53 Supply Verified Ranch/Farm Shipping Certificate This certificate is used: 1. When a producer wants a shipping or load specific certificate. This allows IMI to issue multiple shipping certificates against a location and/or group certificate 2. This does not require a new audit and will only issue up to the original individual group approval head count

38 Page 38 of 53 Supply Verified Onsite Ranch Shipping Certificate Supply Verified Receiving Certificate This certificate is used: 1. When ranch customers verified onsite for SAV, NHTC, VNB, VG, and/or Grass-Fed are shipping to another approved location.

39 Page 39 of 53 SECTION #10: IMI S PRECERTIFICATION POLICY AND PROCEDURE See the above definition of Pre-certification or Pre-Cert. This Section must be followed if a producer wants to purchase Program Compliant Tags prior to knowing that last calving date or the exact number of calves born. For example, this occurs if a producer is applying tags at birth and/or brandings. Pre-Certification Steps: 1. The producer must send in previous year(s) calving records to define the calving season and support the head count they wish to verify, or provide the first calf record for the current season. a. Examples of Head Count Support: i. Pregnancy Check Records ii. A.I. Records iii. Pre-Conditioning Records iv. Marketing Contracts v. Sales Receipts vi. Health Records 2. Conduct an initial evaluation to verify head counts using the SV Audit Checklist 3. If the producer has records to support the head counts he wishes to verify in the future they can be held in a Pre-Certification status. 4. Inform the producer of their status. Explain that this does not mean that they are Approved. We must be able to define the calving season, receive a last calf born record, finalize head count information, and perform the remaining pieces of the audit prior to the producer receiving a SupplyVerified Certificate of Approval or being listed on IMI s approved supplier list. Tag Allocation Steps: 1. Tags are not allocated until the group is moved from Pre-Cert status to an Approved Status 2. If calves will be marketed in multiple calving groups with different calving season windows (for example: January 1 st March 1 st and then March 2 nd to May 2 nd ), then inform the producer that they MUST purchase and apply tags by the appropriate group. If they don t, the buyers will be accessing the source and age information tied to each tag when they read the tags, and the calves would be ineligible if the wrong data is tied to the tag. a. If the calving groups are all co-mingled prior to putting in the Program Complaint Tags based on Calving Groups, then the groups must have some type of secondary identifier applied, so that the appropriate PCT is applied into the appropriate calf s ear (thus calves could be tagged with a specific

40 Page 40 of 53 colored tag to the age group, a series of numbers per age group, different brands, etc ) 3. Tags can be allocated to the producer at an amount equal to or less than the number pre-certified. Approval and Issuance of Certificates: 1. In order for a producer to finalize the Certification process and become an approved supplier the producer must: a. Submit the group s actual calving records b. Send any additional records deemed necessary by the auditor. 2. Tags sent to the producer will then be allocated the correct claim and age information based on the 1 st calf born date on each calving group or allocated to individual dates of birth. 3. REMEMBER: If the producer has purchased groups of tags by calving season, then during the approval process the producer must indicate which tags were applied to which specific calving group. 4. If approved (once actual calving records for each specific calving group are received and everything is verified), producers will receive a certificate of approval for each group approved. 5. The approved producer will then be listed on IMI s Public Approved Supplier List or a Co-Brand or Co-Distributor Private Approved Supplier List. SECTION #11: IMI S PROGRAM COMPLIANT TAG AND ANIMAL IDENTIFICATION POLICY See the definition of Program Compliant Tags and Approved and Unapproved Locations in the Definitions Section of this Manual. For IMI s Source and Age program cattle can only move through approved locations after cattle leave the ranch of origin/birth or they must have a Program Compliant Tag applied prior to the calves leaving the source of origin. Approved Locations include: A USDA QSA/PVP approved feedlot, backgrounder/stocker, ranch, or salebarn Locations approved under a USDA or PVP umbrella If cattle are NOT moving through an approved location they must have a Program Compliant Tag, and the Data tied to the Tag is available at IMI s Tag Look-up at If a producer is shipped tags, they will receive a Tag Disposition Report along with the tags. This report can be completed by the producer, one copy should be sent to IMI, and one retained by the producer in his file. An example is below in this section.

41 Page 41 of 53 To find out who has a USDA QSA or a USDA PVP go to the link below and then on the next screen select the USDA PVP Approved List or the USDA QSA Approved List: To find out if IMI has approved the location under our umbrella go to and click on Approved Supplier Lists, or look in SV2.SupplyVerified.com. IMI sells producers a variety of tags that meet the Program Compliant Tag Definition. They are all listed in the next section of the manual. If a producer has already applied a tag that meets the definition of a Program Compliant Tag, and they have an approved group, then IMI can tie age data to the tag so that it meets our requirements if the following steps are followed: 1. The producer must submit EID tag numbers for the calves enrolled in IMI s SupplyVerified Source and Age Program o If tag numbers cannot be provided cattle cannot be approved o The head counts must tie with the number approved via our SupplyVerified audit 2. Upload the submitted tag manifest to that specific group in SV2.SupplyVerified.com 3. IMI staff will bill the producer a data allocation fee (this is based on the amount of time it takes to convert files, upload files and tie age data to the tags)

42 Page 42 of 53 SECTION #12: IMI S COMPLETE PROGRAM COMPLIANT TAG LIST, SPECIFICATIONS AND PRICING

43 Page 43 of 53

44 Page 44 of 53

45 Page 45 of 53

46 Page 46 of 53 SECTION #13: THE IMPORTANCE OF APPLYING IMI S TAGS CORRECTLY AND COMPLETING THE TAG DISPOSITION REPORT The Tag Disposition Report (reference page 35) should be completed by the producer if we ship them Program Compliant Tags. Encourage producers to send one copy back to IMI and one copy must be retained by the producer. This form details how tags were used. It is critical that a producer understands that the tags sent to him for his approved calving groups MUST be applied to the appropriate calving group AND NOT applied in next year s calf crop or other groups. Buyers will access the age information tied to the tags, when they read the tags upon receipt thus, misapplied tags will cause cattle to be disqualified. IMI will not refund unused tags. The producer should destroy any tags there were not used, or at a minimum send a listing of the unused/destroyed/lost tag numbers to IMI so that allocation data can be reassigned to the tag.

47 Page 47 of 53

48 Page 48 of 53 SECTION #14: SUPPLYVERIFIED CO-BRANDS AND CO- DISTRIBUTORS See the definition of a Co-Brand and Co-Distributor in the definition s section of this manual. Tags specific to our Co-Branding Partners are listed in the Program Compliant Tag List Section. Not all tags are billed by IMI. If IMI is billing, a credit card or check is required before the tag order will be placed (for checks, the tag order will not be placed until the check is received photocopies and check numbers will not work). Producers that are enrolling in one of the below programs require that specific Program Compliant Tags are applied. This is evident based on a Co- Branded or Co-Distributor Kit that is received (KIT100) with a marketing affiliation at the top of the KIT, or by talking to the producer during the audit. 1. Guaranteed Gardner Genetics: This program REQUIRES PCT s, the producer is aware of this based on GGG s relationship with the producer and does not need to be informed by IMI. The producer has the option to purchase either visual only tag or matched set. 2. Montana Livestock Marketing & Consulting: Program Compliant Tags (PCT s) are NOT REQUIRED for this program. If the producer does not know where cattle are being sold/marketed and subsequently shipped to, explain the requirements of Approved and Unappproved Locations. Explain to the producer that the audit will be placed in a Hold for Movement status until the cattle destination is determined, unless they purchase PCT s (see the list above). If the producer wants to purchase PCT s, he/she can purchase the IMI Allflex EID tag on the Program Compliant Tag List. 3. Merial SureHealth Programs: Producers are REQUIRED to purchase PCT s for this program. Verify the shipping address and the date when tags need to be received. 4. Superior Livestock: This co-brand is referred to as SuperiorVerified, producers are REQUIRED to purchase PCT s. Verify the shipping address and the date when tags need to be received. These tags are billed by Superior. *Remember* Cattle can be sold over Superior, but not be under the SuperiorVerified Co-Brand. However, encourage producers to enroll in the

49 Page 49 of 53 SuperiorVerified program, because they more aggressively market these cattle on the video when they use the pink tag. 5. Colorado Cattlemen s Association (CCA): Producers are REQUIRED to purchase PCT s for this program. Verify the shipping address and the date when tags need to be received. 6. Western Video Market: Producers are REQUIRED to purchase PCT s for this program. Verify the shipping address and the date when tags need to be received. *Remember* Cattle can be sold over WVM, but not be under the WVM Co-Brand. However, encourage producers to enroll in the WVM program, because they more aggressively market these cattle on the video when they use the WVM tag. 7. Hereford Verified: Producers are REQUIRED to purchase PCT s for this program. Verify shipping address with producer and the date tags are needed. 8. Producers Cattle Auction (PCA): Producers are REQUIRED to purchase PCT s for this program. Tags are purchased by the producer direct from PCA. The IMI SV Process Manager must request the original tag list from PCA once the calving group is ready to be approved. 9. MOASA Producers are REQUIRED to purchase PCT s for this program. IMI only orders the tags for the Missouri Department of Agriculture. They handle all verification processes. 10. ARQSA Producers are REQUIRED to purchase PCT s for this program. IMI only orders the tags for the Arkansas Livestock and Poultry Commission. They handle all verification processes. 11. North American Limousin Foundation (NALF) Producers are REQUIRED to purchase PCT s for this program. Determination of whether the producer is to receive the LimChoice or LimMark tag is done by the NALF office and is indicated on the KIT100 that the producer sends to IMI Global. Producers have the option to purchase either an EID only tag or a Matched Set for both programs. 12. Per4ormance Producers are not required to purchase an EID tag for this program. As long as the cattle are moving ranch direct to and approved location, and they are carrying ranch ID (tag or brand), a PCT is not required. Producers who are not shipping to

50 Page 50 of 53 an approved location or who desire and PCT may purchase any of the IMI Allflex tags or the Allflex 840 tag. 13. Spruce Mountain Ranch Producers are not required to purchase an EID tag for this program. As long as the cattle are moving ranch direct to and approved location, and they are carrying ranch ID (tag or brand), a PCT is not required. Producers who are not shipping to an approved location or who desire and PCT may purchase any of the IMI Allflex tags or the Allflex 840 tag.

51 Page 51 of 53 SECTION #15: MAKING A CHANGE TO A SUPPLY VERIFIED CERTIFICATE OF APPROVAL There are times when IMI is requested to make a change/correction to a SupplyVerified Certificate. 1. The SV Audit Manager or Auditor will contact the needed parties (producer, buyer, receiver, feedlot, backgrounder, etc ) to discuss: a. The requested change b. If the change is needed, why the original certificate was not issued correctly the first time 2. If a change is required, the detail of the reason for the change, and the justification for the change, must be recorded in supplyverified. 3. The SV Audit Manager or the auditor will make the changes to the certificate and make notes about the certificate change in the NC box on the audit. 4. When re-issuing a certificate the SV Audit Manager or SV Auditor sends a new version of the certificate with a new certificate number to all parties involved (for example, the producer and feedyard) and they are asked to destroy all previous versions. The incorrect certificate has OBSOLETE marked in the certificate notes to denote an obsolete version. 5. If the certificate is edited instead of revised and reissued with a new number, all edit notes must be made in SV on the group page, and in the NC box. Editing the certificate changes information on the certificate, but does not create a new certificate or a new certificate number. It is preferred that the certificate is reissued vs. edited if possible.