Fraud and other corrupt practices pose a grave threat to the effective implementation of the
Organization’s policies and objectives.  Administrative Circular 2015/08 describes, among other things:

• FAOs Zero Tolerance Policy in regards to fraud or other corrupt practices
• Prevention and detection
• Fraud control plans
• Responsibilities of personnel, managers and third parties
• Whistleblower protection
• Relevant policies and circulars (including specifically the Organization’s Vendor Sanctions Procedures, Manual Section 502 “Procurement of Goods, Works and Services” and Manual Section 507 “Letters of Agreement”
• The role of the Office of the Inspector General and confidential Investigations Hotline
  Telephone (+ 39) 06 570 52333
  Fax (+39) 06 570 55550
  Email [email protected]

An FAO Ombudsman/Ethics Officer is available for support.   The Ombudsman is a neutral and confidential officer who can provide independent and impartial guidance and support on conflicts and problems.

The FAO Handbook section, Transparency and Accountability provides detailed guidance on risk management, internal controls, confidentiality and accountability. 

To assist the FAO Representative in the development of a Fraud Prevention Plan, listed below are suggested measures with a view to ensuring that there are adequate internal control mechanisms in place covering the various areas of risk and exposure, thereby minimizing the possibility of fraud and improper use of the Organization's resources.

To reduce the risk of fraud or misappropriation of funds it is essential to ensure that a system of segregation of duties is followed for all financial transactions.  In addition, Cash should only be a means of payment when no other payment means is available or feasible.
Manual Section 202.10 details the Organization’s Internal Control measures while the FAO Handbook related to Finance provides detailed guidance regarding various financial processes and includes forms, templates and contacts.
Additionally, CSF has added specific guidance for issues related to Cash Management, Accounts Receivable, Accounts Payable, Asset Management and Inventory to its training website.  The documentation includes sound recordings of training sessions in various languages and the Powerpoint presentations used during these sessions.

The Procurement and Letters of Agreement section of the FAO Handbook includes links, guidance, policies and checklists related to procurement activities and Letters of Agreement.  In addition, new management tools include:

• Virtual library with a Decision Tree for contracts
• Decentralized Office Dashboard for monitoring and exception reporting (in iMIS)
• Contract management guidelines
• FAO Vendor Sanctions Policy
• Market Analysis resources

The  Procurement Ethics pages of the Handbook provides detailed background resources and policy guidance on FAO’s No-Gift No-Hospitality policy, Collusion Guidelines, Staff Code of Conduct and vendor sanctions and complaints procedures.

The Manual Section for Inventory Management is being updated.

• The receipt of project inputs should be recorded in GRMS on the day the goods are received, and be recorded within the same month.
• The quantity physically received is the quantity that must be entered on the receipt in GRMS and may not be adjusted for any purpose.
• Receipts may not be recorded before the goods are received. 
• The FAOR shall ensure that a physical count of all project inputs stored in FAO-controlled facilities is conducted on the 31st December every year.
• Spoiled, damaged, stolen or otherwise unusable inventory shall be reported to CSF when the goods are determined to be unusable.
• Donated project inputs will be reported to CSF upon receipt of the goods.

This Finance FAQs link responds to questions frequently raised by staff regarding Assets, Inventory and Leases.
Guidance related to assets (Manual Section 503 has been recently updated).

• Assets must be recorded in GRMS giving details of asset type, serial number, custodian name and location, status of the asset, etc.; (Pending system modification)
• Issuance of specific equipment to staff must be documented by a Property Loan Form.
• Issuance of FAO property to NGO’s and implementing partners is strictly prohibited unless approved in writing in accordance with MS503.
• Transfer of property to final beneficiaries must be fully documented and signed at the time the property is transferred.
• FAOR should ensure that there is periodic physical verification of the assets in the Representation; and
• Usage of the Organizations assets for personal use must be limited and with the prior approval of the FAOR. Costs for personal use must be charged back to the user.
• How to sell surplus property to UN Staff

• Official vehicles must be used only for official purposes, unless prior approval of the FAOR has been taken in exceptional circumstances;
• Vehicle log books must be carried in the vehicle at all times and kept up-to-date; and
• Fuel coupons, where available, must be stored in a safe place and a stock register maintained showing delivery issuances and running balances.
• Admin Circular 99/8 Corr. 1 – Official Vehicles in Regional, Subregional Offices and FAO Representations (revised the original AC 99/8 regarding the replacement of vehicles)
• Admin Circular 99/8 Official Vehicles in Regional, Subregional Offices and FAO Representations
• MS 510- Guidelines on the Use, Maintenance and Administration of Vehicles in the Field  (under review)
• How to conduct a sale of an individual asset to 3rd parties
• Vehicle Disposals WORKSHOP
• CSF has begun to develop virtual training courses specifically designed to address common problems identified since GRMS go-live in all FAO locations, click here for more information.

• Petty cash limit is set at USD500 and limit per transaction is USD50, as per best practice. Any changes to these amounts should be approved by CSF by contacting [email protected] . 
• Record petty cash payments in a register.  All payments must be supported with appropriate documentation (supplier invoice/voucher); and
• Responsible administrative staff must conduct a periodic verification of petty cash transactions.
• When banks are not available : how to open a cash imprest account.
• Outposted Petty Cash (for locations far from FAOR office):
• How to Replenish Petty Cash
• How to open an Operational Cash Account - support temporary operational activities in locations where there are no banking facilities available, where opening of a bank account is not feasible, or where direct payments from an FAO office are not possible.

• Updated and complete records of all annual, sick and special leave must be maintained.
• Annual leave, home leave and family travel must be approved in advance. 
• Any changes in rent or terms of lease must be reported to the SSC for actions related to Rental Subsidy
• The selection of National PSAs and National Project Personnel is to be transparent and documented.
• Prior to issuing an offer of employment, it is imperative that the candidates background and references are checked for accuracy and authenticity.