Ensure That Costs Are Appropriate - ADS 596.3.1 - 634.3.2

Automated Directives System 596.3.1, “Establishing Internal Controls,” states that managers must implement appropriate, cost-effective internal controls that reasonably ensure that obligations and costs comply with applicable laws and regulations. Moreover, these controls should reasonably ensure that assets are safeguarded against waste, loss, unauthorized use, or misappropriation.

Automated Directives System 634.3.2, “General Standards for Funds Control,” states that obligations and expenditures may not be authorized or incurred in excess of available funds.

General Recommendations

  • Establish written procedures regarding actions required for approvals of activity expenditures and provide them to the implementer.

SOURCE: AUDIT REPORT NO. 6-268-10-006-P August 24, 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: Financial Management and Budgets

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