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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
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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.
- Conduct Property End-Use Checks - Code of Federal Regulations, Title 22: Foreign Relations, Part 226.34 - ADS 324
- The Process for Resolving Food Losses - 22 CFR 211.9(f)(e) - Food for Peace Handbook
- Adequate Controls Over Food Distribution Were Not Fully Implemented - Principle IV-2 of the Generally Accepted Commodity Accountability Principles - 22 CFR 211.10(a) - Principle II-3 of the Generally Accepted Commodity Accountability
- Storage Conditions for Food Commodities Need Improvement - Generally Accepted Commodity Accountability Principles - 22 CFR 211.10(c) - 22 CFR 211.5(a)
- Assets May Have Been Diverted - GAO’s “Standards for Internal Control in the Federal Government
- 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 629.3.3.2
- 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
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