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The Internal Audit Cycle

The Internal Audit Cycle. Field extension / training. Corrective measures. Internal inspection. Farmers. Internal monitoring product flow. Sanctions. Internal approval decision. How Much Control Do We Need?. Internal Approval. screen inspection checklists decision on approval

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The Internal Audit Cycle

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  1. The Internal Audit Cycle Field extension / training Corrective measures Internal inspection Farmers Internal monitoring product flow Sanctions Internal approval decision

  2. How Much Control Do We Need?

  3. Internal Approval • screen inspection checklists • decision on approval • decide necessary corrective measures • Sanction as required Inspection checklists and comments Internal Inspection Internal Approval Manager or Internal Approval Commitee List ofSanctioned Farmers List ofApproved Farmers (organic and conversion)

  4. What Should Be Done in Case of Noncompliances by Farmers ? Pesticides stored on the farm Use of herbicides Soil Erosion Coffee leaves sprayed 2 months ago Farmer used NPK fertiliser or urea

  5. What Should Be Done in Case of Mistakes Made During Processing or Buying ? Bananas mixed during packing Some Bags not labeled as organic - are they organic? Wrong buying records Purchase officer has bought bananas from not certified farm because organic farmer was not at home

  6. Investigate • What happened? • Why? • When ? • What products/lots are concerned? • Decision • by organic approval manager /OAC • Sanctions • Corrective measures Problem What Needs to Be Done? Act! Document! Note: Serious problems should always be reported immediately to ICS Coordinator.

  7. Example: Types of Sanctions Sanction • Written condition • Penalty ICS will fine farmers $5 • Suspension for a fixed period until the farmer takes corrective actions requested (remains certified) • De-certification of farmers --> New start of conversion period for 36 months • Farmer banned from ICS membership either permanently or for a set time. Situation when sanction applied • Minor deficiencies in record keeping, weak farm management. Minor violations of the standards or regulations • Not having implemented last years conditions Major deficiencies in record keeping • Repeated minor violations Clear violation of the standards but not threatening the organic integrity of the product. • Clear violation of the standards threatening the organic integrity of the product. • Obvious fraud Intentional obstruction of the inspection process, Refusal to respond to written requests

  8. Examples Non-compliances & Sanctions

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