The Federal Government Financial Instruction 3101 defines stores as “All moveable items purchased from public fund or otherwise acquired by the Government”.
STORES CLASSIFICATION
Stores can be classified into two main classes – these are: -
a) Allocated Stores
b) Unallocated Stores
Allocated Stores: - These are stores which the money used for their procurement are already provided for or budgeted for in the approved estimates. The cost of allocated stores is charged to the sub-head that is responsible for the expenditure of the stores. Allocated stores may be purchased directly from outside or taken from the stock of items in unallocated stores.
Purpose of Allocated Stores
1. To make provision for acquisition of quality stores and make them available always when required.
2. To create the required storage space always. This is by adhering to the policy of holding the minimum stocks required.
3. To ensure that those stores which are always needed is made available always.
4. To incur minimum cost as regards acquisition of stores.
Unallocated Stores: - These are stores that are purchased or ordered for the general stock. For unallocated stores, the vote of charge i. e. the sub-head to be chargeable cannot be determined immediately the stores are ordered. The cost of unallocated stores is chargeable to the unallocated stores sub-head in the approved estimate of expenditure. They are charged to the relevant sub-head of expended as Allocated stores when issued.
FURTHER CLASSIFICATION OF STORES Stores can further be classified into three based on their life span.
1. Expendable Stores: - These are stores that are used in the day-to-day activities of an organization. They have a life span of about 2 to 5 years. They include Computer, Television, Farm implements like Cutlasses and Shovels, Calculators e.t.c.
2. Non-Expendable Stores: - These are stores that can be used for a long period of time. They only need maintenance and repairs when required. They have a life span of 5 years and above e.g. Plant and Machinery, Building, Motor Vehicles, Furniture e.t.c.
3. Consumable Stores: - These are stores that are used in the day-to-day running of an establishment. They are used up immediately demand is made for them e.g. Stationeries e.t.c.
DOCUMENTATION OF STORES
Stores accounts are contained in the stock ledger accounts which are extracted from vouchers that are properly authorized. In the case of unallocated stores, the quantities, values and balances will be recorded in the stock ledgers and vouchers. It is pertinent to note that the storekeeper is not responsible for the maintenance of store ledgers. This should be apportioned to the store officer. The stock officer is required to keep separate ledgers for different items of stores. All items of stores should be serially recorded and arranged. All stores that belong to the same class should be recorded in one single ledger.
MAINTENANCE OF TALLY CARD OR BIN CARD
This is a card that must be kept by the store keeper in order to ensure that all the items in the store at any point in time tally with the items contained in the store ledgers. The tally card must be marked with the ledger folio and must be checked and updated when the need arises. Tally cards must be updated by entering the contents of the vouchers prepared for the receipt or issue of stores.
RECEIPT OF AND PAYMENT FOR STORES
When stores are received, the authorized officer in charge should ensure that such stores meet specification, are of required quality and quantity. All stores receipts documentation procedures should be duly observed. The storekeeper must ensure that all received stores are entered in the stores ledger and charged to the chargeable expenditure sub-head. The payment voucher for all items received must be supported with valid Local Purchase Order (LPO), invoices and copy of Stores Receipt Voucher (SRV). The SRV number must be clearly stated on the certificate issued by the storekeeper.
TRANSFER OF STORES
There may arise a situation where one store in a department is out of stock of a particular item, in this case, stores may be transferred from another store to that store. The transfer is carried out by raising Stores Transfer Requisition (STR) by the first store making the request. The STR will be prepared in duplicate and the original forwarded to the issuing store. The issuing store then issues a Store Issue Voucher (SIV) also in duplicate a copy of which will accompany the transferred stores. The other copy will serve as a receipt voucher. 10.4.7 ISSUE OF STORES Before the storekeeper issues out any requisition for stores, a Store Requisition Form (SRF) will have to be prepared and signed by the authorized officer of the department or unit where the store is needed. Also, Stores Issue Voucher (SIV) will be prepared to support all stores issue in the prescribed form. The SIV is to be prepared in duplicate. The storekeeper will update his records by posting the tally card or bin card, the quantity and date of issue.
STORE PROCUREMENT PROCEDURE
The Accounting Officer is responsible for the determination of the maximum level, minimum level and re-order level for the unallocated
stores. When the re-order level is reached, the storekeeper is expected to make purchase requisition to the Purchasing Department. The following procedure will then be followed by the Purchasing Department in the acquisition of new stores: -
1. Seek and approve authority to make purchases from the officer controlling expenditure.
2. Advertise for quotation from suppliers or request for tenders from contractors specifying the closing date for submission.
3. A Departmental Tenders Board will then be constituted to determine the lowest, most reliable and dependable bidder.
4. Recommendation of award of the contract to the successful bidder by the Departmental Tenders Board.
5. Approval by the Head of Department or Director General.
6. Issue of Local Purchase Order (LPO) specifying the quantity, rate and time of delivery of the stores to the successful bidder i.e. contractor.
STORES HANDOVER
This may arise where an officer is re-deployed to another department or another station entirely. It could also be due to an officer embarking on annual or casual leave. The following procedure is to be observed in handover of stores: -
1. The officer taking over the stores must ensure that items in the store tally with the record in the store ledger or bin card.
2. Where the out-going officer is not available, an appointment of a stock verifier is effected to hand-over the store to the in-coming one.
3. Where there are no differences between the physical stores and the store ledger records, the incoming and outgoing officer will sign Treasury Form 10 certificate on stores.
4. Where there are differences resulting in loss of stores, the outgoing officer will be held responsible.
LOSS OF STORES
Where there is establishment of loss of stores, the accounting officer may authorize the write-off of such loss. This however is determined by the factors surrounding the loss. The loss can be written off where any of the following conditions prevails: -
1. The value of the items lost is not more than N200.
2. The internal control system exists and is devoid of any exploitable weakness.
3. The loss cannot be traced to or narrowed down to outright fraud, theft, or unauthorized usage.
4. The loss is not due to negligence of the store officer.
PROCEDURE FOR REPORT OF LOSS OF STORES
In the event of loss of stores discovered by the store-keeper, he must make official report to the Head of Department who will in turn forward a detailed report to the Accounting Officer.
The Accounting Officer then determines the materiality of the loss and if justified to be material, he completes Part IV of the Treasury Form 146 and forwards a copy each to: -
The Accountant-General of the Federation
The Auditor-General for the Federation; and
Head of Accounts Section
SUMMARY OF ACTIONS TO BE TAKEN BY CONCERNED OFFICERS IN THE EVENT OF LOSS OF STORE.
1. Store Keeper: -
Where fraud or theft is established and an officer is suspected, he reports to the police.
Collects and completes the Treasury Form 146 and submits the completed form to the Head of Department.
2. Head of Department: -
Reports the loss in detail to the Accounting Officer.
Carries out thorough investigation about the loss of stores and computes Parts II and III of Treasury Form 146.
Makes recommendation to the Accounting Officer where it deems fit that Board of Enquiry should be constituted to investigate the loss.
3. Accounting Officer: -
Where the loss is found to be substantial, he is to carry out independent investigation and order for the constitution of Board of Enquiry.
Ensures that the recommendations of the Board of Enquiry are effected to the letter.
4. Accountant-General of the Federation:--
Ascertains that the composition of Board of Enquiry is not devoid of experienced, reliable and competent officers of proven integrity.
He is to ensure an accounting officer who is versed in public sector accounting or the internal auditor of the department is a member of the Board of Enquiry.
Generally, all the officers mentioned above have the collective responsibility of ensuring that: -
a) All the exploited internal control system weaknesses are effectively fortified.
b) The loss is recovered by surcharging the culprits.
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