HomeResourcesAudit Database Project Compliance RecommendationsAsset Management and TransferThe Process for Resolving Food Losses - 22 CFR 211.9(f)(e) - Food for Peace Handbook

The Process for Resolving Food Losses - 22 CFR 211.9(f)(e) - Food for Peace Handbook

Requirements for cooperating sponsors’ reporting of loss, damage, or misuse of commodities to USAID or the diplomatic post are set forth in 22 CFR 211.9(f)(e). Specifically, the regulation delineates the information that cooperating sponsors must provide to USAID in loss reports.

The regulation requires that quarterly loss reports to USAID or the diplomatic post provide information on losses valued over $500, including the kind and quantity of commodities; the size and type of containers; the time and place of loss, damage, or misuse; the current location of the commodities; the estimated value of the loss, damage, or misuse; and other pertinent information. If any of this information is not available, the cooperating sponsors must explain why.

In addition, the Food for Peace Handbook, formally known as USAID Handbook 9, Chapter 10 D.2.b, states that the cooperating sponsor must review every loss to determine if a claim was warranted against a third party, and submitted loss reports should include the reason(s) for either instituting or not instituting claim action.

It is extremely important that consultation and discussions with the USAID mission take place on a regular basis to review the criteria that are being used to determine if claim action is justified. Missions are also responsible for determining the validity or propriety of each commodity loss claim, including whether the loss or damage could have been prevented. If the cooperating sponsor is found to be responsible for the loss, 22 CFR 211.9(d) requires the cooperating sponsor to pay the U.S. Government for the value of any commodities lost or damaged, unless USAID determines that the loss could not have been prevented by proper exercise of the cooperating sponsor’s responsibility.

Source:AUDIT REPORT NO. 7-685-10-003-P February 11, 2010

This information is 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 this information.

Tags: Asset Management and Transfer

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