The Department of Agriculture’s Animal Facilities Inspection Program is responsible for licensing and inspecting the state’s 940 animal facilities. As part of this audit, we reviewed the program's policies and practices for inspecting and penalizing facilities, its staffing and management, and its outputs (e.g., the number of licensed animal facilities). With regard to each of these areas, we found: • The program did not have adequate policies to ensure consistent inspections, but the seven inspections we observed were consistent. It also did not have adequate policies or practices to ensure appropriate penalties. • The program appeared to operate efficiently, but some areas related to program management and staffing could be improved to help the program operate more effectively. • The number of licensed animal breeders and their percentage of failed inspections declined slightly in recent years. Additionally, the program did not fully address most of the findings from our 2002 audit.