FGIS

Grain Inspection Advisory Committee

Program Updates

August 2023
Contents

Updates on GIAC Recommendations

Other General Updates

Quality Assurance and Compliance Division

Field Management Division 

International Affairs Division 

Technology & Science Division

Financial Overview
Deputy Administrator

Arthur Neal

Updates on GIAC Recommendations

Other General Updates
Updates on GIAC Recommendations

• Report on Geographic Boundaries (February 10, 2023)

• Soybeans of Other Colors

- Published July 14, 2023; Effective September 1, 2023

• Rule on Exceptions to Geographic Boundaries 

- Published May 3, 2023; Effective August 1, 2023

• Directive on Food and Drug Administration Action Levels

• $55 million Cap on User Fee Expenditures

• Technology Summit 
Other General Updates

• GIAC Nomination Process (Opened Aug. 8; Closes September 22)

• Staffing

- Tony Goodeman – New Senior Policy Advisor to the Deputy Administrator

- Field Management Division Director vacancy will be announced

	 -	 New Orleans Field Office Manager vacant; vacancy will be announced

- Policy, Procedures, and Management Analyst Branch Chief, vacancy announced

	 -	 FGIS Field Offices staffed at nearly 85%; approximately 60 vacancies (e.g. grader

 supervisors, graders, and technicians) not yet announced

• National Organic Program – Strengthening Organic Enforcement

• Cyber Security Threats – future work with USDA Information Technology staff
Director

Karla Whalen

Quality Assurance and 

Compliance Division
About QACD

• AUDITS

• QUALITY PROGRAMS

• REGULATORY QUESTIONS

• INVESTIGATIONS
Shawnie Lee

Compliance Officer

Josh Diaz-Lopez

Compliance Officer

Ronald White

Compliance Officer

Andrew Boamah-Agyekum

Compliance Officer

Yun Tao

Statistician

Ricardo Espitia

Compliance Officer

Tanner Fye

Compliance Officer

Jake Thein

Compliance Officer

Josh Raymond

Compliance Officer

Jennifer Hill

Detail

Micah Malbroux

 Acting Deputy Director

Sophie Parker 

Deputy Director

QACD Staff
USGSA Hybrid Audit Schedule*

FY 24 Q1 FY 24 Q2 FY 24 Q3 

• Mid-Iowa

• Kansas 

• Tri-State

• Wisconsin 

• Idaho

• Ohio Valley

• Virginia 

• Cal-Agri

• Stuttgart Field Office

• League City Field Office

*Subject to change
Audit Trending Finds
Audit Trending*

*Data includes CY 2019-2022 with 3 or more non-compliances 
Audit Trending*

*Data includes CY 2019-2022 with 3 or more non-compliances 
Audit Trending

AUDIT REQUIREMENT REFERENCE

Stowage examination records not maintained 2.8 (c) of FGIS Grain Inspection Handbook IV.

Not maintaining FGIS 944s §800.172 and FGIS Directive 9070.3(4)

E/D Value §800.196 (g.)(7)(ii), FGIS Equipment Handbook, Sections 2.2 (h.)(2) and 1.5 (b.)(2)(a).

§800.196 (g.)(7)(ii) and FGIS Equipment Handbook, Section 2.2 (h.)(2).

Equipment not tested within required timeframe §800.196 (g.)(7)(ii) and FGIS Equipment Handbook, Section 2.2 (h.)(2).

Fumigation records not maintained FGIS Fumigation Handbook, Section 3.3 (c) 

Lab scales not attached §800.196 (g.)(7)(ii) and FGIS Equipment Handbook, Section 2.2 (h.)(2).

Official equipment was not tested in the prescribed manner in accordance with §800.196 (g.)(7)(ii),

§800.217(b)

Full capacity not half capacity FGIS Equipment Handbook Section 2.4(c)(1)
Audit Trending

AUDIT REQUIREMENT REFERENCE

Reporting bribery FGIS Directive 9070.6 (b.)(2)

Lab scales not secured Equipment Handbook §2.2(e) Sealing

IDW errors FGIS IDW Directive

FGIS Grain Inspection Handbook II, Grain Grading Procedure, Section 13.26(a)(b)

SIMS participation rate Title 7, Chapter 3, §84 (g) 

§800.159 (a) of the regulations and FGIS Grain Inspection Handbook, Book IV Section 4.2 (c.) (1) & (3).

§800.160(f)(1)

Prompt issuance of certificates §800.160 (c) Prompt issuance

Mechanical sampling system records were not maintained FGIS Equipment Handbook, Section 1.3 (d.)(7.).

Not maintaining FGIS 100s FGIS Directive 9070.3 Conflict of Interest
Northeast Indiana

• CY22 Q1: Complaints received by NEI customers/Internal FGIS Analysis 

•Q2: Letter of Jeopardy issued to NEI

•Q2-4: Site visits conducted 

• CY23 Q2: Disciplinary Complaint filed with USDA Judicial Office

•Q2: NEI’s designation suspended 

•Q3: NEI’s designation revoked 
Northeast Indiana Next Steps

• Reopen the area for designation application in the Federal Register

• https://www.ams.usda.gov/content/usda-suspends-usgsa-inspection-designationnortheast-indiana-grain-inspection-inc 
Acting Director

Charles Parr

Field Management Division 
FMD Staffing Updates

• New Orleans Field Office Manager

• PPMAB Branch Chief

• Acting Details
Reorganizing Policy Bulletin Board Notices

AMS-FGIS announces reorganization of the Policy 

Bulletin Board Notices to make accessing them easier.

• 23 PB’s relocated to the AMS Website

• 24 PB’s retired

Policy Bulletins | Agricultural Marketing Service (usda.

gov)
US Grain Exports Inspected 

GRAIN 2023 2022 % CHANGE

Barley 1,139 4,746 -76.0%

Canola 10,574 436 2325.2%

Corn 33,727,909 51,633,440 -34.7%

Flaxseed 200 300 -33.3%

Oats 3,295 6,786 -51.4%

Sorghum 2,426,745 7,172,196 -66.2%

Soybeans 49,617,395 54,168,486 -8.4%

Sunflower 4,719 3,028 55.8%

Wheat 14,862,856 15,869,161 -6.3%

TOTAL 100,654,832 128,859,579 -21.9%

Fiscal Year to Date as of August 17, 2023
FGIS 9180.88 Detection of Fecal Matter

• FDA MOU Updates

• Service request in MyFGIS

• Directive updates sought clarity on roles and 

responsibilities

• Accompanying documentation 

• TSD Reference Method

• Results are certified as Board Appeal
Soybeans of Other Colors Update

• July 14, 2023 AMS Published Final Rule

• The final rule eliminated SBOC as an official

factor in the class Yellow Soybeans

• Qualitatively used to determine class

• SBOC in YSB is still available upon request as

Official Criteria

• Effective September 1, 2023

• Soybeans of Other Colors Resource Page | 

Agricultural Marketing Service (usda.gov)
Director

Byron Reilly

International Affairs Division 
International Trade Issues

• U.S. Exporter list consists of exporters, export facilities, HQSG, and companies under 15k 

metric-ton exemptions who ship to China.

• FGIS Submits regular exporter update to GACC. 

• GACC removed pulses, and food grade grains from Decree 248 and placed them back 

under 177.

• GACC’s Animal and Plant Quarantine Division now responsible for pulse registrations

• FAS will act as “competent authority” to submit pulse exporter list

• FAS asked FGIS to include edible sorghum, cottonseed, popcorn, mustard seed, sesame 

seed exporters to FGIS’ Decree 177 registered exporter list.

China Decree 177
International Outreach

• Meeting with Indonesian soybean importers over concern of removal of SBOC from the 

grade standards.

	 •	 Suggested change specs in contact to reflect SBOC limits.

• Educate other USDA agencies and customers about FGIS services.

• Provide technical assistance to foreign governments, cooperators, customers, resolve 

technical barriers to trade.

• Seminars to APHIS International Services overseas offices.

• “Role of FGIS & how FGIS works with APHIS on issues”.

Outreach Activities
International Outreach - continued

• Conducted briefings on FGIS grain standards and services offered to 13 visiting trade

teams from 13 different countries.

• Updated/translated numerous presentations into Arabic, Chinese, French, Japanese, 

Korean, and Spanish.

• Developed cadre of qualified travelers for overseas assignments.

• USWA requested FGIS to give wheat grading workshops in Panama to millers from

C. America in October 2023.

Outreach Activities
International Outreach – Asia TDY

• 4 – Week TDY assignment in September.

• Meet with importers, millers, processors, governments.

• This year FGIS will expand visit to countries in North Asia.

• Visit China, Japan, Singapore, South Korea, The Philippines, and Vietnam.

• Meet with trade associations, APHIS and FAS Attachés in Japan to address grain trade 

issues/concerns.

• Hold seminars on grain standards, services offered, grain grading workshops.
Intra-Agency Participation

• CODEX – Executive and Technical Committees

• WTO SPS & TBT – USDA Sanitary/Phytosanitary and Technical Barriers to Trade

• USDA Biotechnology Coordinating Group

• ICCIA – Intra-Departmental Coordination Committee on International Affair

• GLI – Global Low-Level Initiative on acceptance of biotech grains at low levels 
Foreign Complaints Received

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000 318,923

212,363 200,984

19,637

163,838 144,209

257,451

Yearly Total

FY 17 FY 18 FY 19 FY 20 FY 21 FY 22

5 4 9 2 7 6 6

FY 23*

To Date 

No. Complaints

Fiscal Year 2017 to Fiscal Year 2023 - Metric Tons Involves
Foreign Complaints Received - Details

• China – 1 YSB, 3 Corn DKT

• Algeria – Wheat ergot

• Vietnam – Wheat protein

6 Quality Complaints
Director

Edward Jhee

Technology & Science Division
FGIS Technology and Science Division

• Promote Greater Inspector Alignment

• Technology

• Expanded Testing Services

• Process Improvements
Promoting Inspector Alignment
Online Wheat Variety Classification
Online Wheat Variety Classification

Technology to Support Training
Mycotoxin Test Kits
GE is Not CRISPR

• Increase FGIS’ current capacity to evaluate GE grains.

• 	 Compare detection techniques for “traditional” GE organisms and CRISPR-derived.

• Evaluate sensitivity between current and emergent detection platforms.
Polymerase Chain Reaction (PCR) detect unique element inserted

• Collaboration with University of Missouri 

• 	 DNA Next Generation Sequencing (NGS)

technology

• 	 Comparison of sequencing data to FGIS’ PCR

data for sensitivity
Imaging Technology
Imaging Technology
Imaging Technology
Imaging Technology
Imaging Technology
Expanded Testing Services

US Agency for International Development (USAID): Bureau of Humanitarian Assistance

Pesticide residues, mycotoxins, heavy metals, nutrients
Process Improvements

• Biotechnology program 2023

• Commodities Testing Lab

• Trace Analysis 

• Mycotoxin

• Reliable & Consistent Results
Executive Program Analyst

Denise Ruggles

Financial Overview
FGIS Funding

FGIS operates with a budget of, approximately, $70 million

• $55 million user fee cap allocation

• $17.45 million appropriation allocation (Appropriation is $20M)

Appropriated Funds – authorized under the U.S. Grain Standards Act

• §87h. Funding - (a) Authorization of appropriations. There are authorized to be appropriated

$23,000,000 for standardization and compliance activities, monitoring in foreign ports grain

	 officially inspected and weighed under this chapter, and any other expenses necessary to carry

	 out the provisions of this chapter for each of the fiscal years 2021 through 2025, to the extent that

	 financing is not obtained from fees and sales of samples as provided for in sections 79, 79a, 79b,

87e, and 87f–1 of this title.
FGIS User Fee Programs

• USGSA Grain Inspection and Weighing Program - Fees for grain inspection and weighing services in the 

United States and Canada – Schedule A as published in section 800.71(a)(1) of the regulations under the 

United States Grain Standards Act, as amended.

• USGSA Supervision of Official Agencies Program - Fees for supervision of grain inspection and weighing 

services in the United States – Schedule B as published in section 800.71(a)(2) of the regulations under U.S. 

Grain Standards Act, as amended. 

• Rice Inspection Program - Fees for rice inspection services - As published in section 868.91 of the

regulations under the Agricultural Marketing Act of 1946.

• Commodity Inspection Program – Fees for commodity inspection services and laboratory tests - As 

published in section 868.90 of the regulations under the Agricultural Marketing Act of 1946.

User Fee Accounts (subject to sequestration)
USGSA User Fees Assessed

• USGSA Grain Inspection and Weighing - Regulations 7 CFR 800.71(a)(1) Schedule A fees for official

inspection and weighing services performed by FGIS, includes hourly, unit, and tonnage fees. 

• USGSA Grain Supervision - Regulations 7 CFR 800.71(a)(2) Schedule B fee for supervision of official

inspection and weighing services performed by delegated States and designated agencies, includes 

supervision fee by metric ton. 

• USGSA Miscellaneous fees for other services – Regulations 7 CFR 800.71(d) fees for registration certificates

and renewals (export registration) and designation amendments.

• The fees are reviewed annually, and the assessment of the current fee schedule became effective 

April 1, 2023. 
Historical Graph - Supervision of OAs Program

$88,460 

$1,204,353 

$85,176 

152,478,456 

 -

 50,000,000

 100,000,000

 150,000,000

 200,000,000

 250,000,000

 300,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 - 1/

Metric Tons

Dollars

Fiscal Years

Revenue Obligations Operating Reserve Supervision Tonnage

*1 FY23 revenue and obligations through quarter 3.
Supervision of Official Agencies (OA) 

Historical Operating Reserve

Figures may not sum due to rounding and adjustments of prior year obligations.

Program goal is to maintain not less than 3 and not more than 6 months in accordance with 7 CFR 800.71(b)(2)(i).

Category FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 - Q3

Revenue $0.00 $0.00 $0.00 $1.69 $0.39 $0.09

Obligations $1.88 $1.55 $1.81 $1.37 $1.23 $1.20

Annual Surplus or (Deficit) ($1.88) ($1.55) ($1.81) $0.32 ($0.84) ($1.12)

Operating Reserve (OR) $5.08 $3.53 $1.73 $2.04 $1.20 $0.09

Months OR 32 27 11 18 12 1

(Millions of Dollars)
Historical Graph - Inspection and Weighing Program

1 FY23 revenue and obligations through quarter 3

$21,023,967 

$28,820,594 

($4,759,676)

80,521,716 

 -

 20,000,000

 40,000,000

 60,000,000

 80,000,000

 100,000,000

 120,000,000

 140,000,000

 160,000,000

($10,000,000)

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 - 1/

Metric Tons

Dollars

Fiscal Years

Revenue Obligations Operating Reserve Export Tonnage MT
History of Tonnage Fee

• Implemented October 1, 1996, with three components

- Hourly rate to recover direct labor costs

- Unit test or service type rate

	 -	 Metric ton administrative charge to recover indirect costs in the field offices and headquarters

• Administrative tonnage fee based on six-tiered tonnage rate

	 -	 October 1, 1996 to June 13, 2004

• Administrative regional tonnage fee based on region incorporating tonnage history

	 -	 June 14, 2004 to December 31, 2016

• Administrative tonnage fee based on 5 year rolling tonnage average and 

prior year national and local costs

- January 1, 2017 to Current
USGSA Inspection & Weighing Annual Review

§ 800.71 - Fees assessed by the Service.

(b) Annual review of fees. For each calendar year, starting with 2021, the Service will review fees included in 

this section and publish fees each year according to the following:

(1) Tonnage fees. Tonnage fees will consist of the national tonnage fee and local tonnage fees and will be 

calculated and rounded to the nearest $0.001 per metric ton. All outbound grain officially inspected and/

or weighed by the Field Offices in New Orleans, League City, Portland, and Toledo will be assessed the

national tonnage fee plus the appropriate local tonnage fee. Export grain officially inspected and/or weighed

by delegated States and official agencies, excluding land carrier shipments to Canada and Mexico, will be

assessed the national tonnage fee only. 

The fees will be set according to the following (next page):
2023 National Tonnage Fee & History

§ 800.71(b)(1)(i) National tonnage fee. The national tonnage fee is the national program administrative costs for the previous fiscal

year divided by the average yearly tons of export grain officially inspected and/or weighed by delegated States and designated agencies,

excluding land carrier shipments to Canada and Mexico, and outbound grain officially inspected and/or weighed by the Service during the

previous 5 fiscal years.

Total Tons 

by Fiscal Year FY18 FY19 FY20 FY21 FY22 5 Year Rolling National Tonnage

National 129,687,652 107,896,235 110,090,771 136,574,792 123,745,530 121,598,996

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

Total National Cost $7,214,466 $6,906,527 $8,075,737 $6,836,376 $5,704,963 $6,687,477 $3,793,021 n/a

Calculated National 

Tonnage Fee n/a $0.067 $0.060 $0.065 $0.056 $0.047 $0.054 $0.031

Effective National 

Tonnage Fee $0.061

max. 5%

reduction 

$0.064

max. 5%

 reduction 

$0.057

max. 5%

reduction 

$0.062

2%

reduction 

$0.055

max. 5%

 increase 

$0.050

max. 5%

 increase 

$0.057

max. 5%

 increase 

$0.033
2023 Local Tonnage Fee

§ 800.71(b)(1)(ii) Local tonnage fee. The local tonnage fee is the Field Office administrative costs for the previous fiscal year divided by

the average yearly tons of outbound grain officially inspected and/or weighed by the Field Office during the previous 5 fiscal years. The local

tonnage fee is calculated individually for each Field Office.

Total Tons by 

Fiscal Year FY18 FY19 FY20 FY21 FY22

Pacific Northwest 4,643,241 2,530,648 3,331,672 4,136,482 2,7

Toledo 1,802,762 1,597,58  948,840 1,154,856 1,191,9

New Orleans 66,996,126 57,807,378 59,768,303 72,482,289 68,880,711

League City 8,424,216 7,939,994 9,318,595 12,877,525 8,335,1

Total Tons by 

Fiscal Year

5 Year Rolling 

National Tonnage 

FY22 Local 

Administrative Costs 

2023 calculated local 

fee prior to Operating 

Reserve adjustment 

2023 adjusted local fee 

for Operating Reserve 

(5% increase)

Pacific Northwest 3,472,409 $414,143 $0.119 $0.125

Toledo 1,339,196 $354,073 $0.264 $0.277

New Orleans 65,186,961 $1,372,632 $0.021 $0.022

League City 9,379,090 $665,113 $0.071 $0.075
USGSA Inspection & Weighing Operating Reserve Adjustment

§ 800.71(b)(3) Operating reserve. In order to maintain an operating reserve not less than 3 and not more than 

6 months, the Service will review the value of the operating reserve at the end of each fiscal year and adjust

fees according to the following:

(i) Less than 4.5 months. If the operating reserve is less than 4.5 times the monthly operating expenses, 

the Service will increase all fees in Schedule A in paragraph (a)(1) of this section by 2 percent for each 

$1,000,000, rounded down, that the operating reserve is less than 4.5 times the monthly operating expense, 

with a maximum increase of 5 percent annually. Except for fees based on tonnage or hundredweight, all 

fees will be rounded to the nearest $0.10.

(ii) Greater than 4.5 months. If the operating reserve is greater than 4.5 times the monthly operating 

expenses, the Service will decrease all fees in Schedule A in paragraph (a)(1) of this section by 2 percent 

for each $1,000,000, rounded down, that the operating reserve is greater than 4.5 times the monthly 

operating expense, with a maximum decrease of 5 percent annually. Except for fees based on tonnage or 

hundredweight, all fees will be rounded to the nearest $0.10.
Grain Inspection and Weighing Program Historical Operating Reserve

(Millions of Dollars - Figures may not sum due to rounding and prior year adjustments.)

Category FY16 FY17 FY18 FY19 FY20 FY21 FY22 Estimated

FY23

Revenue $45.52 $44.76 $37.00 $31.89 $30.26 $34.86 $31.77 $28.78

Obligations $39.55 $40.08 $39.32 $37.91 $35.80 $37.81/a $35.80/b $35.67/c

Annual Surplus or (Deficit) $5.97 $4.68 ($2.33) ($6.02) ($5.54) ($2.96) ($4.04) ($6.89)

Operating Reserve (OR) $18.86 $23.55 $21.56 $15.54 $10.01 $7.07 $3.04 ($3.85)

Months OR 5.7 7.0 6.6 5.0 3.4 2.2 1.0 (1.3)

Fee Adjustment 

Calculation for next FY

5%

reduction

5%

reduction

5%

reduction

2%

reduction

5%

 increase

5%

increase

5%

 increase

Periodic 

Review

a/

FY21 $2.471 million of obligations reimbursed with CARES Act funding. 

b/FY22 FGIS overhead obligations rebalanced with appropriated.

c/FY23 FGIS overhead obligations rebalanced with appropriated.
Fiscal Year 2023 Third Quarter

FGIS User Fee Accounts

Revenue Obligations Earnings / Loss Operating Reserve

U.S. Grain Standards Act

Inspection & Weighing $21,023,967 $28,820,594 -$7,796,627 -$4,759,676

Official Agencies $88,460 $1,204,353 -$1,115,893 $85,177

Agricultural Marketing Act

Rice $3,205,373 $4,617,919 -$1,412,546 $1,650,491

Commodities $1,403,009 $1,928,700 -$525,691 $1,043,512

Fiscal Year 2023 Total $25,720,809 $36,571,566 -$10,850,757 -$1,980,496

Obligations contains some full year obligations to support the program during fiscal year 2023 (such as rent, communications,

utilities, annual maintenance contracts). Note: This is a cumulative fiscal year report with a starting date of October 1 throu

the reported quarter.
Breakdown of Costs

a/FY21 $2.471 million of obligations reimbursed with CARES Act funding for direct service salary and benefits.

b/FY22 FGIS overhead obligations rebalanced with appropriated.

c

/FY23 FGIS payroll distributors are adjusting quarterly to reflect correct cost category and overhead obligations rebalanced with appropriated.

Category FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 – Q3

5 Year Rolling Average Metric Tons 105,522,055 107,029,800 114,975,263 124,671,254 122,738,781 121,004,714 123,853,477 121,598,996

Actual FY Metric Tons 122,330,979 135,017,935 129,687,652 107,896,235 110,090,771 136,574,792 123,745,530 80,521,716

Salary and Benefits $33,600,714 $34,284,274 $32,651,823 $29,918,624 $28,926,157 $30,522,358/a $30,610,243/b $21,967,339/c

Travel $ 1,099,056 $ 1,228,942   751,508 $762,764 $477,5$625 $    

Shipping and Moving Expenses $ 17,455 $108,916 $ $          9,3269,526 $         73,

Rent and Utilities $ 932,419 $ 1,002,723 $ 973,722 $805,656 $1,1,162 $   1,1,252 $   1,199 $   

Printing $29       23,137 $16,156 $630 $5,946 $  1,430

Other Services $ 3,239,362 $ 2,717,294 $ 3,620,205 $5,638221 $  4,204,291 $4,634,625 $ 2,355,016/b $ 

Supplies and Materials $ 509,807 $486,899 $26 $      435,921 $427$616 $    

Equipment $ 123,070 $ 220,035 $ 824,225 $ 290,108 $486,      20,752 $165

Insurance Claims/Interest Paid $ 42 $$       $      2 $        19,73096,33     

TOTAL $39,551,241 $40,080,284 $39,321,550 $37,910,189 $35,797,593 $37,814,930 $35,803,048 $28,820,594
Annual Fee Review Challenges

√ Fee review cannot start until after all tonnage is reported and fiscal year financial reporting is completed.

• Tonnage reporting continues until mid-October as customers determine if loading and services are 

completed (ex: if completed on or before 9/30 then current FY; if after the next FY)

• Financial fiscal year reporting isn’t completed until October 31st

√ The final rule change implemented by the Reauthorization Act of 2015, restricts the annual fee review to

only look at prior year costs and doesn’t project increases for next year cost of living raises, new projects or

	 equipment needs, overhead service increases, etc.

√ The limitation on 5% increases have not helped us cover cost increases for providing services.

√ Administrative tonnage isn’t assessed on land carriers to Canada and Mexico inspected by official agencies,

	 which causes confusion of the different metric tonnage reports (i.e., fee review and annual/quarterly

reporting) in USGSA on export tonnage. Supervision fee is assessed instead on those land carriers.
Historical Hourly Rates

a/FY16 Hourly rates in final rule implementing the changes in the Reauthorization Act of 2015.

Rate Description FY16/a FY17 FY18 FY19 FY20 FY21 FY22 FY23 

1 Year Contract Mon-Fri (6am-6pm) $40.20 $38.20 $36.30 $34.50 $33.80 $35.50 $37.30 $39.20

1 Year Contract Mon-Fri (6pm-6am) $42.10 $40.00 $38.00 $36.10 $35.40 $37.20 $39.10 $41.10

1 Year Contract Sat, Sun, Overtime after 8 hours $48.20 $45.80 $43.50 $41.30 $40.50 $42.50 $44.60 $46.80

1 Year Contract Holiday $71.40 $67.80 $64.40 $61.20 $60.00 $63.00 $66.20 $69.50

Noncontract Mon-Fri (6am-6pm) $71.40 $67.80 $64.40 $61.20 $60.00 $63.00 $66.20 $69.50

Noncontract Mon-Fri (6pm-6am) $71.40 $67.80 $64.40 $61.20 $60.00 $63.00 $66.20 $69.50

Noncontract Sat, Sun, Overtime after 8 hours $71.40 $67.80 $64.40 $61.20 $60.00 $63.00 $66.20 $69.50

Noncontract Holiday $71.40 $67.80 $64.40 $61.20 $60.00 $63.00 $66.20 $69.50

Hourly Fees Adjusted

Prior to 

formula 

change

5%

reduction

5%

eduction

5%

reduction

2%

 reduction

5%

 increase

5%

increase

5%

increase
AMS Hourly Rates

a/

Fees effective October 1, 2015

b/Fees effective April 1, 2023

c

/Fees effective October 1, 2022

Rate Description FGIS FY16/a FGIS FY23/b Dairy/c

Fresh Fruits & 

Vegetables/c

Processed 

Fruits & 

Vegetables/c Meat/c Egg & Poultry/c

1 Year Contract Mon-Fri (6am-6pm) $40.20 $39.20 $90.00 n/a $85.00 $86.00 

1 Year Contract Mon-Fri (6pm-6am) $42.10 $41.10 $99.00 n/a n/a n/a $71.00

1 Year Contract Sat, Sun, Overtime after 8 hours $48.20 $46.80 $106.00 n/a $107.00 $107.00 $84.00

1 Year Contract Holiday $71.40 $69.50 $123.00 n/a $129.00 $129.00 $101.00

Noncontract Mon-Fri (6am-6pm) $71.40 $69.50 $110.00 $100.00 $85.00 $114.00 $99.00

Noncontract Mon-Fri (6pm-6am) $71.40 $69.50 $121.00 n/a n/a n/a n/a

Noncontract Sat, Sun, Overtime after 8 hours $71.40 $69.50 $129.00 $137.00 $112.00 $132.00 $122.00

Noncontract Holiday $71.40 $69.50 $147.00 $175.00 $139.00 $154.00 $147.00
Periodic Fee Review Approach

FGIS assembled a team, representing all divisions and branches performing USGSA services, to review actual costs involved for providing 

user fee services over the past 5 years. Based on the review the following scenarios are presented to reflect full cost recover strategies.

√ Scenario 1 calculates fees based on FY23 team data collection on costs of performing each type of service and increases are included 

	 for anticipated cost of living raise for 2024, inflation, operating reserve (for calculated obligations and recovery of anticipated FY2023

	 deficit). Tonnage fee calculated based on the 5-year rolling average.

√ Scenario 2 calculates fees based on AMS standard formula with a reduction to regular rates. Overtime and holiday rates are 

calculated at overtime at 1.5 times regular rate and holiday at 2 times regular rate. Tonnage fee calculated based on the 5-year rolling

average.

√ Scenario 3 calculates fees based on AMS standard formula with a reduction to regular rates. Overtime and holiday rates are

calculated at overtime 1.25 times regular rate and holiday 1.5 times regular rate. Tonnage fee calculated based on the 5-year rolling

average.

√ Scenario 4 calculates fees based on AMS standard formula. Overtime and holiday rates are calculated at overtime 1.25 times regular

rate and holiday 1.5 times regular rate. Tonnage fee calculated based on the 5-year rolling average and adjusted to contribute operating

reserve of 4.5 months.
AMS Standard Formula

FGIS implemented and published the AMS standard formula in 7 CFR 868.91 Fees for certain Federal rice

inspection services. 

§ 868.91(b)(1) For each year, the Administrator will calculate the rates for services, per hour per inspection program employee using the 

following formulas:

(i) Regular rate. The Service’s total inspection program personnel direct pay divided by direct hours, which is then multiplied by the 

next year’s percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If

applicable, actual travel expenses may also be added to the cost of providing the service. 

(ii) Overtime rate. The Service’s total inspection program personnel direct pay divided by direct hours, which is then multiplied by the next 

year’s percentage of cost of living increase and then multiplied by 1.5, plus the benefits rate, plus the operating rate, plus an allowance for

bad debt. If applicable, actual travel expenses may also be added to the cost of providing the service.

(iii) Holiday rate. The Service’s total inspection program personnel direct pay divided by direct hours, which is then multiplied by the next 

year’s percentage of cost of living increase and then multiplied by 2, plus the benefits rate, plus the operating rate, plus an allowance for

bad debt. If applicable, actual travel expenses may also be added to the cost of providing the service. 
AMS Standard Formula (continued)

§ 868.91(b)(2) For each year, based on previous year/historical actual costs, the Administrator will calculate the benefits, operating, and

allowance for bad debt components of the regular, overtime, and holiday rates as follows: 

(i) Benefits rate. The Service’s total inspection program direct benefits costs divided by the total hours (regular, overtime, holiday) worked,

which is then multiplied by the next year’s percentage of cost of living increase. Some examples of direct benefits are health insurance,

retirement, life insurance, and Thrift Savings Plan (TSP) retirement basic and matching contributions. 

(ii) Operating rate. The Service’s total inspection program operating costs divided by total hours (regular, overtime, and holiday) worked, 

which is then multiplied by the percentage of inflation.

(iii) Allowance for bad debt rate. Total allowance for bad debt, divided by total hours (regular, overtime, holiday) worked. 

§ 868.91(b)(3) The Administrator will use the most recent economic factors released by the Office of Management and Budget for budget

development purposes to derive the cost of living expenses and percentage of inflation factors used in the formulas in this section.
Financial Impacts since Reauthorization of 2015

• FY17 – 1.0%

• FY18 – 1.4%

• FY19 – 1.4%

• FY20 – 2.6%

• FY21 – 1.0%

• FY22 – 2.2%

• FY23 – 4.1%

• FY24 President’s Budget requesting 5.2%

a

/FY21 $2.471 million of obligations reimbursed with CARES Act funding for direct service salary and benefits.

b/FY22 FGIS overhead obligations rebalanced with appropriated.

c

/FY23 FGIS payroll distributors are adjustment quarterly to reflect correct cost category and overhead obligations rebalanced with appropriated

After the enactment of the Reauthorization, FGIS experienced 

cost of living adjustments (COLA):

Category FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 - Q3

Salary and Benefits $33,600,714 $34,284,274 $32,651,823 $29,918,624 $28,926,157 $30,522,358/a $30,610,243/b $21,967,339/c

TOTAL $39,551,241 $40,080,284 $39,321,550 $39,321,550 $35,797,593 $37,814,930 $35,803,048 $28,820,594

Percentage of total obligations 84.95% 85.54% 83.04% 76.09% 80.80% 80.72% 85.50% 76.22%
Rate Fees Revenue Categories

Hourly rate to recover direct labor costs

• Hourly – Onsite (hourly services provided at an applicant’s facility) FY22 = 64%

• Hourly – Other (hourly services provide at other than an applicant’s facility and scale testing) FY22 = 1%

Unit test or service type rate

• Unit – (services per carrier, stowage, Export Registration, factor/grading/tests, CWT) FY22 = 

• Amount – (reimbursement services, like travel, mailing costs, etc.) FY22 = 1%

Metric tonnage

• Tonnage – (National and Local tonnage assessed on all FGIS inspected or weighed outbound and export

carriers; and National tonnage assess on OA inspected or weighed carriers, except land carriers to

	 Canada and Mexico) FY22 = 28%
Periodic Review Hourly Rates – Scenarios

a/FY16 Hourly rates in final rule implementing the changes in the Reauthorization Act of 2015.

b/Scenario 1 Projected an operating reserve negative $1.0 million or negative 0.3 months.

c/Scenario 2 Projected an operating reserve $2.8 million or 0.9 months.

d/Scenario 3 Projected an operating reserve $0.3 million or 0.1 months.

e/Scenario 4 Projected an operating reserve $13.7 million or 4.4 months.

Rate Description FY16/a FY23

FY2024 

Scenario 1/b 

Actual Costs

FY2024 

Scenario 2 /c 

AMS Formula 

(OT 1.5/H 2.0)

FY2024 

Scenario 3/d

AMS Formula 

(OT 1.25/H 1.5)

FY2024 

Scenario 4 /e

AMS Formula 

Unmodified AMS Dairy AMS Poultry

1 Year Contract Mon-Fri (6am-6pm); Proposed change

1 Year Contract Regular - Monday – Saturday (6am-6pm) $40.20 $39.20 $54.70 $60.00 $60.00 $97.70 $90.00 

$65

1 Year Contract Mon-Fri (6pm-6am) $42.10 $41.10 REMOVE REMOVE REMOVE REMOVE $99.00 $71.00

1 Year Contract Sat, Sun, Overtime after 8 hours; Proposed 

change: 1 Year Contract Overtime - Monday – Saturday 

(6pm-6am) & Sunday

$48.20 $46.80 $77.90 $90.00 $75.00 $122.10 $106.00 $84.00

1 Year Contract Holiday $71.40 $69.50 $106.60 $120.00 $90.00 $146.60 $123.00 $101.00

Noncontract Mon-Fri (6am-6pm) Proposed change: 

Noncontract Regular - Monday – Saturday (6am-6pm) $71.40 $69.50 $85.50 $86.00 $86.00 $130.30 $110.00 $99.00

Noncontract Mon-Fri (6pm-6am) $71.40 $69.50 REMOVE REMOVE REMOVE REMOVE $121.00 n/a

Noncontract Sat, Sun, Overtime after 8 hours; Proposed 

change: Noncontract Overtime - Monday – Saturday 

(6pm-6am) and Sunday

$71.40 $69.50 $127.10 $129.00 $107.50 $162.80 $129.00 $122.00

Noncontract Holiday $71.40 $69.50 $136.30 $172.00 $129.00 $195.40 $147.00 $147.00
Periodic Tonnage Rates – Scenarios

a/FY16 Tonnage rates in final rule implementing the changes in the Reauthorization Act of 2015.

b/Scenario 1 Projected an operating reserve negative $1.0 million or negative 0.3 months.

c/Scenario 2 Projected an operating reserve $2.8 million or 0.9 months.

d/Scenario 3 Projected an operating reserve $0.3 million or 0.1 months.

e

/Scenario 4 Projected an operating reserve $13.7 million or 4.4 months.

Rate Description FY16/a FY23

FY2024

Scenario 1/b 

FY2024

Scenario 2/c

FY2024 

Scenario 3/d

FY2024

 Scenario 4/e

National Tonnage Fee $0.061 $0.033 $0.058 $0.058 $0.058 $0.062

Metric Ton Administrative Fee - League City $0.192

L $0.075 + 

N $0.033 =

$0.108

L $0.079 + 

N $0.058 =

$0.137

L $0.079 + 

N $0.058 =

$0.137

L $0.079 + 

N $0.058 =

$0.137

L $0.087 + 

N $0.062 =

$0.149

Metric Ton Administrative Fee - New Orleans $0.094

L $0.022 + 

N $0.033 =

$0.055

L $0.023 + 

N $0.058 =

$0.081

L $0.023 + 

N $0.058 =

$0.081

L $0.023 + 

N $0.058 =

$0.081

L $0.024 + 

N $0.062 =

$0.086

Metric Ton Administrative Fee – Pacific Northwest $0.191

L $0.125 + 

N $0.033 =

$0.158

L $0.148 + 

N $0.058 =

$0.206

L $0.148 + 

N $0.058 =

$0.206

L $0.148 + 

N $0.058 =

$0.206

L $0.163 +

N $0.0623 =

$0.225

Metric Ton Administrative Fee - Toledo $0.306

L $0.277 + 

N $0.033 =

$0.310

L $0.326 +

N $0.058 =

$0.384

L $0.326 +

N $0.058 =

$0.384

L $0.326 +

N $0.058 =

$0.384

L $0.401 + 

N $0.062 =

$0.463
Scenario 3 Projected Outlook for FY24 – FY26

a/FY23 FGIS overhead obligations rebalanced with appropriated.

b

/FY24 increases related to cost-of-living adjustment of 5.2%

c/FY25 and FY26 minimal increases related to cost-of-living adjustment of 2.9%

Category

Estimated 

FY23

Estimated 

FY24

Estimated 

FY25

Estimated 

FY26

Revenue $28.78 $41.36 $47.66 $47.66

Obligations $35.67/a $37.17/b $38.25/c $39.36/c

Annual Surplus or (Deficit) ($6.89) $4.19 $9.41 $8.30

Operating Reserve (OR) ($3.85) $0.34 $9.75 $18.05

Months OR (1.3) 0.1 3.0 5.5

(Millions of Dollars - Figures may not sum due to rounding and prior year adjustments.)
Scenario 3 Projected Rates FY24 – FY26

Rate Description FY23 FY24 FY25 FY26

Proposed: 1 Year Contract Regular - Monday – Saturday (6am-6pm) $39.20 $60.00 $63.00 $63.00

Proposed: 1 Year Contract Overtime - Monday – Saturday (6pm-6am) & Sunday $46.80 $75.00 $78.80 $78.80

1 Year Contract Holiday $69.50 $90.00 $94.50 $94.50

Proposed: Noncontract Regular - Monday – Saturday (6am-6pm) $69.50 $86.00 $90.30 $90.30

Proposed: Noncontract Overtime - Monday – Saturday (6pm-6am) and Sunday $69.50 $107.50 $112.90 $112.90

Noncontract Holiday $69.50 $129.00 $135.50 $135.50

National Tonnage Fee $0.033 $0.058 $0.061 $0.058

Metric Ton Administrative Fee - League City L $0.075 + N $0.033 =

$0.108

L $0.079 + N $0.058 =

$0.137

L $0.087 + N $0.061 =

$0.148

L $0.087 + N $0.061 =

$0.148

Metric Ton Administrative Fee - New Orleans L $0.022 + N $0.033 =

$0.055

L $0.023 + N $0.058 =

$0.081

L $0.024 + N $0.061 =

$0.085

L $0.024 + N $0.061 =

$0.085

Metric Ton Administrative Fee – Pacific Northwest L $0.125 + N $0.033 =

$0.158

L $0.148 + N $0.058 =

$0.206

L $0.160 + N $0.061 =

$0.221

L $0.160 + N $0.061 =

$0.221

Metric Ton Administrative Fee - Toledo L $0.277 + N $0.033 =

$0.310

L $0.326 + N $0.058 =

$0.384

L $0.388 + N $0.061 =

$0.061

L $0.388 + N $0.061 =

$0.061