LIABILITY OF CARE FOR LOSSES - Food Resources Manual

A loss of food may occur due to any act or omission by CARE unless such loss was beyond CARE’s control. To determine whether CARE exercised its responsibilities properly, country offices must examine the capacity of counterparts to carry out program activities, the operating environment of the country (infrastructure, security), and usual commercial practices of contractors for services.

While there may be many constraints to carrying out programs using food resources, country offices must assume responsibility for:

  • Establishing proper warehouse inventory and commodity accounting systems including procedures that account for losses, pursue claims, and require taking physical inventories
  • Establishing proper storage and handling procedures
  • Establishing procedures to minimize losses and to detect them on a timely basis
  • Routinely inspecting food and storage facilities and remedying deficiencies
  • Entering into contracts for services with reputable individuals and/or companies
  • Including provisions in agreements and contracts with counterparts or contractors for services that define responsibilities and payment of penalties
  • Providing training for all staff managing or monitoring food resources
  • Properly transporting food
  • Establishing procedures to register beneficiaries eligible to receive food and assure distributions to beneficiaries
  • Having in place adequate systems to monitor the activities of CARE and counterpart staff who receive, store and dispatch food from their warehouses and distribute food to beneficiaries
  • Notifying donors of losses and taking action, on a timely basis, to pursue claims against responsible parties
  • Notifying local police and other appropriate authorities about suspected or known thefts of food and requesting their assistance to prosecute responsible parties
  • Closing out audit recommendations (internal and external) on a timely basis.

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