Subject: Analysis of Fiscal Year 2014 certifier assessment reports and

issues of noncompliance, including recommendations for National Organic

Program accreditation program improvements.
Introduction
This report analyzes USDA National Organic Program (NOP) accredited certifying
agent (certifier) issues of noncompliance cited in Fiscal Year 2014 (FY14). The
analysis represents 37 audit reports associated with both U.S. and International
certifier accreditation assessments. At the end of the report, we recommend
improvements to the accreditation program, based upon these analysis findings.
Analysis Procedures
This analysis follows procedures described in NOPs quality manual, NOP 2004-6,
Annual Review of NOP Accreditation Audits. AIA analyzed 37 audit checklists and
notices of noncompliance to develop the data below. The notices of noncompliance
were issued in FY14, between October 1, 2013, and September 30, 2014. Most of
the associated audits were conducted in FY14, although a small number occurred in
FY13 and are being reported here because the issues of noncompliance associated
with these audits were issued in FY14. The list represents 29 domestic and 8
international certifiers audits. AIA conducted 57 total audits in FY14, but not all of
the associated audit checklists and/or issues of noncompliance had been finalized
by September 30, 2014. Therefore, these audits are not included in this analysis
and will be analyzed in FY15.
The audits were conducted by staff from the National Organic Program and auditors
from the Quality Assessment Division of the USDAs Livestock, Poultry and Seed
Program. The scope of audits included 7 Renewal of Accreditation audits, 21 Midterm audits, 1 Pre-decisional audit, 1 Initial audit, and 7 Compliance audits.
Auditors use Form NOP 2005, Accreditation Assessment Checklist, to record findings
observed in all audits.
The number of findings cited in each audit checklist was recorded on a spreadsheet.
This data was analyzed against the total number of questions identified in the audit
checklist to show each certifiers percentage compliance with the questions from
the checklist.
The NOP issues of noncompliance as a result of reviewing findings identified in audit
checklists. The number of issues of noncompliance and the specific regulatory
citations associated with those issues of noncompliance were entered into the
spreadsheet. The citations are categorized by USDA organic regulation section,
subpart, subsection, and provision. The spreadsheet records issues of
noncompliance in the areas of certification ( 205.400 205.406), accreditation (
205.500 205.510) and, noncompliance procedures and administration ( 205.620
205.681).
To conduct the analysis, the spreadsheet summarizes the number of issues of
noncompliance for each USDA organic regulation section or provision. The
percentage of notices of noncompliance citing a specific regulatory citation was

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calculated to identify noncompliance frequencies. The recommendations at the end

of the report were formulated as a result of reviewing these noncompliance
frequencies.
A Checklist score for determining an overall certifying agent rate of compliance with
USDA Organic Regulation requirements for certification, accreditation and,
noncompliance procedures and administration was included in this accreditation
audit analysis. Checklist scores are determined by calculating the total number of
cited issues of noncompliance as a percentage of the total number of regulation
provisions included under the scopes of accreditation specified in the certifying
agent application for accreditation.
Analysis Findings
For FY 2014, accreditation audits of certifying agents identified a total of 143 USDA
Organic Regulation issues of noncompliance cited in 37 notices of noncompliance,
which are about 5.3 issues of noncompliance per notice. The frequency of any
noncompliance identified during the audits is summarized for USDA Organic
Regulation subparts E-Certification, and F-Accreditation of Certifying Agents, and in
subpart G-Administration: State Programs, Fees, Compliance, Residue Analysis, and
Appeals. Frequencies are reported as a percentage of the total number of audits,
for example, X of 37 reports.
1. Subpart E, Certification requirements, 205.400 205.406, 61 issues of
noncompliance were cited in 23 of 37 (62 %) notices of noncompliance.

Twelve issues of noncompliance were cited for 205.402 Review of

applications, in eight (32%) notices.
Twenty-five issues of noncompliance were cited for 205.403 Onsite
inspections, in fifteen (41%) notices.
Ten issues of noncompliance were cited for 205.404, Granting
certification, in six (16%) reports.
Six issues of noncompliance were cited for 205.405, Denial of
Certification, in five (14%) notices.
Eight issues of noncompliance were cited for 205.406, Continuation of
Certification, in seven (19%) notices.

2. Subpart F, Accreditation of Certifying Agents, 205.500 205.510, 49 issues

of noncompliance were cited in 19 (51%) notices of noncompliance.

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Forty-three issues of noncompliance were cited for 205.501(a)(121) General Requirements for Accreditation, in 18 (49%) notices.
Sections with higher noncompliance frequencies were 205.501(a)
(3), on the ability to carry out the NOP regulations, an indication of
a certifying agents administrative capacity; 205.501(a)(6),
annual performance evaluations; and 205.501(a)(21), carrying
out other terms and conditions determined by the Administrator to
be necessary.

There were no noncompliance issues reported for 205.502,

Applying for Accreditation.
There were no noncompliance issues reported for 205.503,
Applicant information.
Two issues of noncompliance were cited for
205.504, Evidence of Expertise and Ability, in
two (5%) notices.
One noncompliance was cited for 205.505,
Statement of agreement, in 1 (3%) notice.
There were no noncompliance issues reported
for 205.506 205.509 in FY 2014. Provisions
contained in 205.506 205.509 are
applicable to the administration of the National
Organic Program, and not to accredited
certifying agents.
Three issues of noncompliance were cited for
205.510, Annual Report, recordkeeping and
renewal of accreditation, in 3 (8%) notices.

3. Subpart G, Administrative, 205.620 205.622, 205.642, 205.660

205.663, 205.670 205.672 and, 205.680 205.681, 33 issues of
noncompliance were cited in 21 (57%) notices of noncompliance.

No noncompliance issues were reported for 205.620 205.622, State

Organic Programs.
No noncompliance issues were reported for 205.640 205.642, Fees
and other charges for accreditation and Payment of fees and other
charges.
Seven issues of noncompliance were cited for 205.642, Fees and other
charges for certification, in 6 (16%) notices.
Four issues of noncompliance were cited for 205.660, Compliance general, in four (11%) reports.
No noncompliance issues were reported for 205.661, Investigation of
certified operations.
Eighteen issues of noncompliance were cited for 205.662,
Noncompliance procedures for certified operations, in fifteen (41%)
notices. Seven of the fifteen were cited for 205.662(c), Proposed
suspension or revocation (procedures).
No noncompliance issues were reported for 205.663, Mediation.
Four issues of noncompliance were cited for 205.670, Inspection and
testing of agricultural products to be sold or labeled as organic, in three
(8%) notices.
No noncompliance issues were reported for 205.671 or 205.672,
Exclusion from organic sale and Emergency or pest disease treatment.
No noncompliance issues were reported for 205.681, Adverse Action
Appeals Process.

4. Checklist Score

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An audit checklist score is determined for each certifier as a result of the audits. AIA
tallies the number of USDA organic regulation citations against which the certifier is
audited, based on the scopes of the certifiers accreditation. AIA also tallies the
number of findings identified in each of these audit checklists.
A score is calculated by determining the number of findings (potential issues of
noncompliance) as a percentage of the total number of regulation provisions
included in the audit checklist (Form NOP 2005). In FY14, the average checklist
score for the 37 audit assessments was 96.7%.
Recommendations for Improving the NOP Accreditation Program
For FY 2014, recommendations for improving the NOP accreditation program
include:
1. Continue to share the analysis findings with accredited certifying agents to
increase awareness of USDA Organic Regulations with higher noncompliance
frequencies.
2. Provide in-depth training to certifying agents with specific focus on areas
with high rates of noncompliance. The results above indicate the need for
training modules in: conducting onsite inspections; noncompliance
procedures and adverse action implementation; carrying out the provisions
of the Act and understanding 205.402 through 205.406 (certification
procedures) and 205.670 (inspection and testing); annual performance
evaluations, and 205.501(a)(21) other terms and conditions determined by
the Administrator to be necessary. Section 205.501(a)(21) relates to various
topics, including some Instructions published in the NOP Program Handbook.
AIA will review the individual issues of noncompliance issued to certifiers to
determine whether there is a trend in the type of issues of noncompliance
cited to 205.501(a)(21) and propose additional training topics for certifiers.
3. Internal review of the analysis findings by NOP staff to increase awareness of
significant ACA issues of noncompliance with the regulations. This review
may enhance communication with ACAs during events on regulation
interpretation.

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