HomeResourcesAudit Database Project Compliance RecommendationsAsset Management and TransferInventory is Not Tracked or Managed Effectively - ADS 596.3.1 - U.S. Government Accountability Office’s publication Standards for Internal Control in the Federal Government

Inventory is Not Tracked or Managed Effectively - ADS 596.3.1 - U.S. Government Accountability Office’s publication Standards for Internal Control in the Federal Government

ADS 596.3.1, “Establishing Internal Controls,” requires managers and staff to implement internal controls to safeguard assets against waste, loss, unauthorized use, and misappropriation.

In addition, the U.S. Government Accountability Office’s publication Standards for Internal Control in the Federal Government states that an agency needs to manage risk and establish physical control to safeguard vulnerable assets by periodically comparing inventory counts with control records. The publication also states that transactions should be recorded promptly to maintain their relevance and value to management in controlling operations and making decisions.

General Recommendations

  • Develop an action plan to establish adequate management and financial internal controls and oversight over assets and community stores and establish adequate management and financial internal controls and oversight over assets, community stores, warehouses, etc.
  • Review the inventory and financial records of assets, community stores, warehouses, etc. to determine the correct inventory.

Source: 7-683-11-008-P Year: 2011

The recommendations are derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations.  Please see the disclaimer of this site before using recommendations.

Tags: Asset Management and Transfer

Newer news items:

 
You may also be interested in these articles: