The Current - Louisiana Seafood Promotion and Marketing Board’s 2012 Annual Report
Editors Note:
This is a first in a series of articles from the Louisiana Seafood Board’s 2012 Annual Report. The report is being mailed to the Louisiana seafood community as well as state and national legislators. It is also available online and can be downloaded for printing.
by Springfield Lewis, Louisiana Seafood News
The Louisiana Seafood Board has spent nearly $7 million in BP funds so far on a multi-year marketing campaign to raise the profile of its commercial fishing community and promote its premium products.
Fiscal year 2012 spending launched supply-chain services for fishermen, expanded Louisiana seafood’s brand into new markets, and engaged hundreds of thousands of consumers in person, print and online.
Expenditures of $6.9 million represent a little less than half of $15 million that BP funded for the board’s marketing campaign. This campaign is intended to help seafood markets and supporting industries overcome the negative effects of the 2010 Deepwater Horizon oil spill.
Funding Mechanism
To ensure complete fiscal responsibility and accountability, the Louisiana Wildlife and Fisheries Foundation acts as custodian of all BP funds granted to the Louisiana Seafood Board for its marketing efforts.
BP provides funding to the Louisiana Seafood Board on a reimbursable basis. The board invoices BP for reimbursement on expenditures covered under the agreement. To date, BP has released to the state $15 million of its $30 million commitment.
The Louisiana Seafood Board has engaged GCR, Inc. to oversee BP funding, including the majority of the approved board expenditures to third-party suppliers and agencies. Upon completion of a project, the board is billed and the invoice follows the state approval process before going to the foundation for payment.
Quarterly reports are submitted to BP accounting for all activity and funds disbursed during the period for various campaigns.
The Louisiana Seafood Board, therefore, does not have any BP funds at its disposal until it is obligated to pay board-approved expenditures.
Ensuring Due Diligence
Kristin McLaren, the board’s assistant executive director, understands the need for due diligence. She said the procurement process – even when involving BP funds – must adhere to Louisiana state laws, and can take months to accomplish.
“To comply with state rules and regulations, often times the staff must work through a myriad of processes before spending the funds, which can result in delays,” said McLaren. “These processes, while cumbersome, are necessary to ensure proper oversight of spending.”
The Louisiana Seafood Board recognizes its duty as a public entity to maintain transparency.
Capitalizing on technology, the board’s records are readily accessible to the public without having to leave home. In addition to publishing an annual report, all campaign documentation can be accessed online at GCRdata.com/LSPMB.
$30 Million Committed
Kristin McLaren understands the need for due diligence and must adhere to Louisiana state laws. Photo: Ed Lallo/Louisiana Seafood News
In all, BP has committed $30 million in total funds for the entire campaign, which will be spent over several years.
Of the $15 million funded to date by BP, as of June 30 this year a cash balance of approximately $8 million is being held in an account at the Louisiana Wildlife and Fisheries Foundation. That money carries over to fiscal year 2013 for the Louisiana Seafood Board, McLaren said.
The breakdown of BP funds spent through the end of fiscal year 2012 (June 30), including all committed dollars for current projects, is as follows:
- 13 percent for GCR, acting as the campaign’s fiscal manager.
- 51 percent for The Food Group, running the trade and industry- related marketing campaign.
- 33 percent for Graham Group, handling the consumer-related campaign.
- 3 percent for professional services.
“These percentages illustrate the emphasis of the campaign is on trade- related programming, which directly impacts the seafood supply chain,” said McLaren.
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