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According to Generally Accepted Commodity Accountability Principles, commodity management organizations should establish and use appropriate storage and handling procedures to protect the quality of commodities and guard against undue losses.
USAID commodity storage guidelines also require that storage space requirements should be given careful attention and storage should be secure. Warehouses should be free of leaks and holes in the walls.
Also, 22 CFR (Code of Federal Regulations) 211.10(c), Inspection and Audit, requires cooperating sponsors and recipient agencies to cooperate with and assist U.S. Government representatives to enable them to, among other things, inspect commodities in storage or the facilities used in the handling or storage of commodities. Furthermore, 22 CFR 211.5(a) requires that cooperating sponsors submit information for the Operational Plan, from which it may be determined that “…adequate storage facilities will be available in the recipient country at the time of arrival of the commodity to prevent spoilage or waste of the commodity.”
General Recommendations
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Develop a plan of action with a timetable to (a) upgrade storage facilities, including roof and wall repairs, and (b) implement measures to ensure that warehouse staff are aware of the USAID Office of Food for Peace storage guidelines.
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
- Requiring Containerization Has Not Been Fully Considered - Principle IV-2 of the Generally Accepted Commodity Accountability Principles
- 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
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