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.
- 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.
|←Previous Plan for End-Use Checks of Donated Commodities is Not Available - Automated Directives System (ADS) 324.5.6,|
- Strengthen Commodity Controls - P.L. 480 Handbook
- Options for Unused Equipment - ADS 324.5.4b
- Adequate Controls Over Food Distribution Were Not Fully Implemented - Principle II-3 of the Generally Accepted Commodity Accountability Principles - 22 CFR 211.10(a)
- Storage Conditions for Food Commodities Need Improvement - Generally Accepted Commodity Accountability Principles, Principle IV-2,11 - 22 CFR 211.5(b) - USAID Commodity Reference Guide
- Assets Were Missing, Diverted, and Sold for Profit - GAO publication Standards for Internal Control in the Federal Government, pages 14 and 15
- Partner Did Not Track or Manage Inventory Effectively - ADS 596.3.1 - GAO’s publication Standards for Internal Control in the Federal Government
- Sustainability of Facilities Is Questionable - Section 611(e) of the Foreign Assistance Act of 1961
- Contractor’s Property Accounting System Was Not Approved, and Required Reports Were Not Submitted - USAID Acquisition Regulation (AIDAR) 752.245-71 - AIDAR 752.245-70 - ADS 6184.108.40.206
- Property Transfers Were Not Appropriate - Title 22 Code of Federal Regulations Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, Section 226.34, Equipment - U.S. Government Accountability Office issued Standards for Int
- Plan for End-Use Checks of Donated Commodities is Not Available - Automated Directives System (ADS) 324.5.6,