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close this bookCARE Food Manual (CARE , 1998, 355 p.)
close this folderChapter 3 - Internal Control
close this folderIII. Audits and Management Reviews
close this folderC. Internal Audits and Management Reviews
View the document1. CARE USA Internal Audit Department
View the document2. Country Offices
View the document3. Suggested Checklist for Management Reviews

3. Suggested Checklist for Management Reviews

a. Responsibilities and Timing

Senior managers of country offices will be responsible for reviewing their own operations each year and submitting findings and recommendations to regional managers and internal audit at CARE USA Headquarters. The review may be conducted by members of the country office staff or experienced outside consultants.

b. Places to be Reviewed

· Country and regional offices
· Counterpart offices -- main and regional
· Ports
· Warehouses
· A representative sample of distribution sites.

c. Overall Assessment of Agency's Capability

· Country office (appearance, size, location equipment, type of records, status of files and reports)
· Size and capability of staff and number of field monitors
· Scope and quality of previous reviews and action taken on previous recommendations
· Agreements and effectiveness of their implementation.

1) Summary of agreements:

· Between country office and host government
· Between country office and counterparts, including those at distribution sites
· Between country office and contractors for services.

2) Agreement coverage for the following:

· Survey of cargo discharge from ships

· Prompt duty free entry

· Right of country office representatives to examine records of counterpart operations, inspect food in storage, and observe distributions

· Travel in country and make decisions about the program

· Confiscation and return by police of food found in black markets

· Coverage of operational and distribution costs by donors and counterparts, including in-kind contributions

· Counterpart reimbursement for losses.

3) General recommendations for improving country offices' capability.

d. Review of Country Office Policy and Program Guidelines and Their Implementation

1) Eligibility of Recipients

· Written guidelines or criteria prepared by country office to share with groups requesting food. Are these guidelines known to counterparts and other local organizations? Are guidelines consistent with donor laws and regulations?

· What criteria are supposed to be used before approving new projects or terminating others? Are they applied in practice? If not, why not?

· Select three specific projects belonging to different projects using food resources in different ways, e.g., MCH, FFW or emergency distributions, and verify how eligibility requirements (including payment of nominal fees) were applied.

· Formulate recommendations for improving eligibility guidelines and their enforcement.

2) Computation of Food Requirements

· How were individual food rations determined for each program category request to donors, e.g., an AER for Title II programs?

· Compare requested rations with rations dispatched from warehouses and with rations actually distributed at the three selected project sites. Note and explain any discrepancies.

· Is information on the number of beneficiaries per project updated before warehouse dispatch orders are emitted for a given project?

· Compare existing stocks at selected project sites and warehouses serving them with "normal" distribution rates according to approved rations and number of beneficiaries. Account for losses or excesses.

· Make recommendations about methods of computing, updating and controlling food requirements.

3) Adequacy of Physical Facilities and Equipment

· Ports
· Main warehouse
· Regional and secondary warehouses
· Stores and distribution points at selected project sites.

e. Review of Control Documents and Inventory Systems

· The description of the country and regional office inventory system follows the "life-cycle" of a typical food shipment, from the development of the program plan and request to the donor through final reports on distribution and end-use. Each step will be numbered and any gaps in the inventory "system" noted. Steps to be covered are given below, in section f.

· The donor approved program plan should be checked against actual distributions by using "case histories" of specific shipments. Reference should be made to points where information systems were inadequate or where decisions were not taken despite adequate information, indicating why and who was responsible.

· Make recommendations to improve country office information systems.

f. Steps to Check in the "Life-Cycle" of a Shipment

· Basis for preparing request to donors for estimated future needs or for emergencies

· Basis for preparing program plans in coordination with donors, counterparts and other international or local NGOs

· Basis for submitting Call Forwards

· Usefulness and timeliness of shipping documents sent by CARE USA's Procurement Office and other CI member offices

· Documentation and procedures required for clearing shipments through port

· Independent discharge and delivery survey reports and filing of claims for marine and internal losses

· Control of port losses and claims

· Control of transport to main warehouses

· Control of warehouse inventory and losses

· Control of updated food requirements for each project or region

· Basis for and frequency of warehouse dispatch orders to projects or regions

· Control of transit losses during transport from main warehouses to regional, other secondary warehouses and at project sites

· Control of losses at regional or other secondary warehouses and at project sites

· Method of disposal of damaged food

· Claims made for inland losses

· Control of distribution from regional warehouses or other secondary warehouses to project sites

· Methods of distribution, and control documents at projects sites

· Frequency and form of end-use checks and inspections, including reports and actions taken

· Control and utilization of funds from beneficiary contributions and the sale of empty containers

· Actions taken to avoid sale or trade of food by beneficiaries

· End-use reports provided by beneficiaries and by regional offices

· Basis for preparing commodity and recipient status reports

· Actions taken to ensure that overall distribution levels are within approved program plans

· Coordination of food aid from different donors, including distribution of food from multiple donors and avoidance of giving the same beneficiaries multiple rations from different donors unless otherwise provided by program plans.

g. Summary of Recommendations for the Management Review