Have you set options fmtsearch?
http://support.sas.com/documentation/cdl/en/lrdict/64316/HTML/default/viewer.htm#a000279102.htm
Post full log of proc format and datastep if so.
Notice the first line of what you posted. This means you have to add (at the beginning of your program):
options fmtsearch=(varkvlei.formats, library.formats);
Otherwise, SAS will look in the wrong place to try to find $DESC.
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