HomeResourcesAudit Database Project Compliance RecommendationsAsset Management and TransferStorage Conditions for Food Commodities Need Improvement - Generally Accepted Commodity Accountability Principles, Principle IV-2,11 - 22 CFR 211.5(b) - USAID Commodity Reference Guide

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

According to Generally Accepted Commodity Accountability Principles, Principle IV-2,11 commodity management organizations should establish and use appropriate storage and handling procedures to help ensure quality and minimize losses.

The USAID Commodity Reference Guide states that sound storage procedures should also be followed in order to minimize insect and rodent problems. Specifically, the guidelines require warehouse cleanliness, segregation of damaged food, routine inspection for any visual signs of insect infestation, and fumigation to destroy all stages of insects that may be present.

Further, they state that just because there are no visual signs of residual kill, insects or rodents may recontaminate the commodity immediately after fumigation. Therefore, in order to protect stored foods, a great emphasis must be placed on cleaning in order to avoid commodities contamination, especially if sprays and fogs are used to eliminate insects.

Further, 22 CFR 211.5(b) highlights program supervision as one of the responsibilities of cooperating sponsors. Cooperating sponsors must provide adequate supervisory personnel for the efficient operation of the program, including personnel to:

  • Plan, organize, implement, control, and evaluate programs involving distribution of commodities or use of monetized proceeds and program income, and
  • Make warehouse inspections, physical inventories, and end-use checks of food or funds.

The Generally Accepted Commodity Accountability Principles are a set of professional standards relating to management, handling, tracking, and reporting on the use of food commodities in the international development and relief program. They are compiled and published by Food Aid Management, an association of private voluntary organizations engaged in international food aid programming.

General Recommendations

  • Implement a plan of action with a timetable to (a) include commodities and warehouse inspections during site visits to the warehouses and distribution centers, and correct the weaknesses noted; (b) ensure that distribution centers warehouse staffs are aware of the USAID Office of Food for Peace storage guidelines; and (c) ensure that commodities are regularly inspected, and fumigated when signs of infestation are found.
  • Develop policies and procedures to inspect commodities and warehouses during site visits and to ensure that internal transportation, storage, and handling are adequate by local commercial standards.

AUDIT REPORT NO. 4-617-11-001-P NOVEMBER 10, 2010

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

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