HomeResourcesAudit Database Project Compliance RecommendationsAsset Management and TransferRequiring Containerization Has Not Been Fully Considered - Principle IV-2 of the Generally Accepted Commodity Accountability Principles

Requiring Containerization Has Not Been Fully Considered - Principle IV-2 of the Generally Accepted Commodity Accountability Principles

Principle IV-2 of the Generally Accepted Commodity Accountability Principles requires that recipient organizations establish and use appropriate storage and handling procedures to protect the quality of commodities and guard against undue losses. The principle also requires that shipments from the port to the inventory locations must be done in a manner that preserves the quality and characteristics of the product. This phase can require proper vehicles, good stacking techniques, and protective coverings.

Furthermore, the Food Aid Logistics Operational Handbook states that containerization of cargo has made it possible to significantly reduce the physical handling of the contents, thereby reducing the need to tally units during each transfer and reducing the potential for damage during the handling process.

Sources:

The Generally Accepted Commodity Accountability Principles are a set of standards developed by a coalition of 13 private voluntary organizations.

The Food Aid Logistics Operational Handbook is a document prepared by CARE used to provide guidance for developing logistics plans for food aid projects.

General Recommendations

  • Conduct a cost-benefit analysis of using containers to ship all food commodities and (b) take appropriate actions on all future Assistance Programs based on the results of the analysis.

Source: AUDIT REPORT NO. 7-685-10-003-P February 11, 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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