Sudan Program

Logistics Manual(Procurement, Warehouse Management Asset

Short version)

2007

Approved Date: November 15, 2007

Approved by: Joanna Watson, Deputy Country Representative Southern Sudan

Signature: __________________________________

TABLE OF C ONTENTS

Introduction………………………………………………………………………………………………2I. PROCUREMENT……………………………………………………………………………………...31.1. PROCUREMENT OBJECTIVES…………………………………………………………………...31.2. THE PROCUREMENT PROCESS & TIME REQUIRED…………………………………………31.3. HOW DO WE DO BUSINESS?.........................................................................................................31.4. CONFLICT OF INTEREST……………………………………………………................................31.5. KEY COMPONENTS OF THE PROCUREMENT PROCESS…………………………………….41.6. PROCUREMENT CATEGORIES…………………………………………………………………..41.7. REQUESTING-INITIATING PROCUREMENT…………………………………………………..61.8. IRC PROCUREMENT FORMS…………………………………………………………………….71.8.1. Purchase Request…………………………………………………………………………………..71.8.2. Request For Quotation……………………………………………………………………………..9 1.8.3. Bid Analysis Summary…………………………………………………………………………….9 1.8.4. Purchase Order …………………………………………………………………………………...10 1.8.5. Contract ……………………………………………………………………………………… ….10 1.8.6. Delivery Report…………………………………………………………………………………...11 1.8.7. PR Tracking ……………………………………………………………………………………...111.9. PROCUREMENT FILING REQUIREMENTS …………………………………………………...142. WAREHOUSE (INVENTORY) MANAGEMENT…………………………………………………162.1. DOCUMENTATION………………………………………………………………………………162.1.1. Delivery Report…………………………………………………………………………………..16 2.1.2. Warehouse Register………………………………………………………………………………17 2.1.3. Waybill …………………………………………………………………………………………..17 2.1.4. Packing List………………………………………………………………………………………18 2.1.5. Stock Card …………………………………………………………………………………….....18 2.1.6. Bin Card…………………………………………………………………………………….........192.1.7. Store Release …………………………………………………………………………………….19 2.1.8. Warehouse Stock Inventory Tracking Report……………………………………………………20 2.2 DISPATCH / RELEASE OF MATERIALS………………………………………………………..202.2.1 Collected Materials………………………………………………………………………………202.2.2 Delivered Materials…………………………………………………………………………… 202.2.3 Materials on Loan………………………………………………………………………………..202.2.4 Returned Materials……………………………………………………………………………….212.2.5 Carrying out an Inventory Check………………………………………………………………...212.2.6 Stock Level Adjustments………………………………………………………………………...212.3. FILING……………………………………………………………………………………………..223. ASSET MANAGEMENT ………………………………………………………………………… 233.1. ASSET DEFINITION……………………………………………………………………………...233.2. ASSET PURCHASE AND DOCUMENTATION………………………………………………...233.2.1. Asset Register…………………………………………………………………………………….243.2.2. Asset Inventory Tracking Sheet…………………………………………………………………. 24 3.2.3. Equipment Issue/Receipt Form …………………………………………………………………..26 3.3. ASSET LIABILITY IN CASE OF LOSS, DAMAGE, THEFT…………………………………...263.4. ASSET DISPOSAL………………………………………………………………………………...263.5. PROPERTY………………………………………………………………………………………...273.6. FILING……………………………………………………………………………………………..29

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INTRODUCTION

This Manual reflects the IRC-HQ Standard Operating Procedures (SOPs) for procurement, warehouse and asset management, which mandates that all IRC Southern Sudan Country Offices comply with, the SOPs set by NY. Please note that this manual is specifically authored for the Southern Sudan Program and should be used along with the IRC-HQ Global Logistics Manual.

The manual is being circulated to all IRC Southern Sudan offices in hard copy. A CD with the relevant forms is also being circulated to each office.

The procedures outlined in this manual will go into effect on November 15, 2007. It is the responsibility of the Field Coordinators or staff in charge in each location to ensure that the procedures are being implemented according to the instructions in this manual. Please train and monitor your logistics and program staff on the proper use of the forms.

Please feel free to direct any questions about these procedures to the Logistics Coordinator in Juba office.

All logistics staff, Field Coordinators/Managers and above are expected to familiarize with procedures outlined in this manual.

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I. PROCUREMENT

The respective staff is required to ensure that procurement meets the overall objectives of the program, which sufficient funds are available in existing grants, and that commodities and services are purchased at competitive prices.

1.1. PROCUREMENT OBJECTIVES

Authorized personnel procuring materials or services for their program must check that:

1. The procurement is part of the objectives of the program;2. Sufficient funds are available in the budget line item (confirmed by the Finance

Department);3. The procurement complies with donor requirements (e.g., “Buy American” restrictions

for USAID, ECHO procurement regulations)

Failure to comply with the policies and follow the required procedures may result in excessive prices, donors refusing to pay for goods or materials purchased, and/or poor audit reports all of which jeopardize future funding and programs.

1.2. THE PROCUREMENT PROCESS & TIME REQUIRED

Buying goods or services is not simply a case of deciding today what is needed, going to a supplier and buying it and using it tomorrow. To be efficient, receive the best value for money and have materials available when they are needed it is important to be aware of the steps in the overall procurement process and particularly the need to plan for and start the process in advance in order to avoid delays in program implementation.

Time Required – procurement activity starts when a completed Purchase Request form arrives to the Logistics department, from this point the time required is dependent on the size of the order, location of supplier (local, Nairobi, international), whether this is a new item for which suppliers must be identified, specific donor regulations etc. Procurement times will range from one week to several months.

Logistics staff are responsible for processing procurement requests as rapidly as possible while ensuring that the IRC policies and procedures are followed. Logistics staff can not bypass required procedures to shorten the procurement process. Therefore staff requiring procurement are responsible for ensuring they submit procurement requests with sufficient lead time.

Purchase Requests should not be issued in the last 30 days of a grant.

1.3. HOW DO WE DO BUSINESS?

IRC is committed to implementing open, fair and transparent procurement practices, and to respect the host country laws. In addition we strive to develop and maintain positive relationships with suppliers and local business communities to ensure effective working relationships which will assist in meeting our program needs.

1.4. CONFLICT OF INTEREST All employees must be aware of what constitutes a conflict of interest and the procedures to follow should such a situation arise. No employee, officer, or agent of the IRC shall participate in the selection, award or administration of purchases or contracts where to his or her knowledge the employee, his or her immediate family, or partner has a financial interest in the supplier’s organization.Employees, officers, and agents of the IRC shall neither solicit nor accept cash, gratuities, favors, or anything of monetary value from suppliers or potential suppliers.

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To insure objectivity and eliminate unfair competitive advantage, suppliers who participate in the development or drafting of specifications, requirements, request for quotes, or request for proposals (that include proprietary knowledge or equipment) should be excluded from competing for business related to their participation.

Employees, officers, and agents of the IRC who knowingly violate this policy will be subject to such disciplinary actions as deemed appropriate by the Deputy Country Representative.

All IRC staff that hold decision-making authority or influence over the procurement process will sign the IRC Code of Conduct Statement (1-00).

Original statements will be held on staff members Personnel Files and a copy held with the Logistics Coordinator. New statements will be signed when staff members job title or description changes.

Confidentiality of Information

Staff must take care not to pass on information, intentionally or unintentionally, on estimated prices, budgets, other supplier quotes or any other internal procurement related information to any outside party-person. Disclosure of this kind of information may unfairly benefit a supplier, result in higher quotes and/or it may result in collusion on pricing-bids between suppliers.

1.5. KEY COMPONENTS OF THE PROCUREMENT PROCESS All purchases must be approved and carried out strictly in accordance with the approved

Authorization Schedule according to the authority limits document. Only fully completed and duly authorized PRs are to be submitted to the Logistics Dept.

Incomplete PRs might be returned to the originator causing delays in the procurement process. Specification of items: in order to ensure that the items procured meet the requirements of the

programs, the items need to be fully specified in detail. Sequence of procurement forms: the Purchase Request Form and Bid Analysis Summary must

be approved before the Purchase Order/Contract is signed. Timelines of procurement forms: Program Managers or Coordinators should take into account

that it takes time to process procurement requests. All procurement must be planned well in advance. Documents should be sent in a timely manner to allowed for proper review and processing. Each stage of the procurement process takes time!!!

To complete the internal IRC review process To identify suppliers To request and receive supplier offers For the supplier to prepare the order To deliver the order to the Logistics Department To deliver the order to the requesting officer

Therefore planning in advance is essential.

1.6. PROCUREMENT CATEGORIES

Procurement of materials will be classified into the following categories:

USD 0 – 500

501 – 20,00020,001 – 75,000

> 75,000

Each of these categories has a different set of procedures. It is absolutely forbidden for any IRC staff to separate Purchase Requests, Purchase Orders, or receipts artificially in order to avoid compliance with the rules set forth in each of these categories.

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All Purchase Requests regardless of category must be reviewed by the Finance Department to ensure accuracy in coding and availability of funds.

All Purchase Requests regardless of category requesting procurement of assets must be approved by the Logistics Coordinator in Juba (email approval will suffice).

Procurement up to 500 USD or equivalent

These purchases are handled through petty cash disbursements and vendor receipts. To obtain an advance complete a Cash Disbursement Voucher – on the Purpose line check “Advance”. Advances must be approved by the staff members Sector/Logistics Coordinator or Manager who has been given signing authority. Attach required supporting documents as below.Advances for Procurement of goods (buying materials, supplies):

– Less than $500 requires a list of the goods/quantity to be purchased and estimated price (or memo)

Purchasers should compare prices and obtain the most competitive price, in any case.

Purchases of less than 500 USD made directly by Programs, do not require a Purchase Request form. Follow the relevant Finance policy and procedure.

Purchases of less than 500 USD requested through Logistics must be submitted on a PR. However, up to that level, only the approval signature of the appropriate manager is required

The purchaser should obtain one written quotation in line with sound purchasing practices for purchases up to $500, PR not required unless logistics involved

Procurement from 501 – 20,000 USD or equivalent

A duly authorized Purchase Request and Purchase Order is required for the procurement.Purchases in this category must include a minimum of three written bids on supplier letterhead and a Bid Analysis Worksheet.

Procurement from 20,001 –75,000USD or equivalent

At this level, Sealed bids are required (Restricted or Open) in addition to Purchase Requests, Purchase Orders/ Contracts, and Bid Analysis Worksheets.

A Contract with the Supplier must be signed, specifying the terms of the transaction and the mutual obligations. Price proposals of potential suppliers will be kept on record and they might be invited to bid directly for future purchases.

Should there be less than three local (in-country) suppliers, prices must be sought from and international source for comparative purposes. Where the supplier holds a sole distributorship, a “Sole Supplier Certificate” must be submitted with the sealed bid and form part of the procurement documentation.If sealed bid is required in field sites please contact Logistics Coordinator in Juba for guidance on the process and requirements.

Vehicle purchases are exempted from the sealed bid policy.

Procurement greater then 75,000USD

Open, sealed-bid tender with NY Procurement participation.

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For all procurement above US $100,001, refer to the IRC-HQ Standard Operating Procedures (SOPs) for procurement.

It is absolutely forbidden for any IRC staff to separate purchase requests or orders or receipts in order to avoid compliance with the rules set forth in each of these categories.

All Purchase Requests regardless of category must be reviewed by the Finance Department to ensure accuracy in charging expenses to particular grant and availability of funds.

Where actual costs exceed the approved PR amount, Logistics are authorized to proceed with the purchase provided that the difference is less than 10%. If the difference is greater than 10% then logistics must obtain additional approval from approving manager to proceed with order.

All Purchase Requests regardless of category requesting procurement of assets must be approved by the Logistics Coordinator in Juba.

For purchases in locations other than the requesting location a current signed Purchase Request must be scanned sent to the office under taking the procurement to initiate the process.Field offices have to send scanned (or original ) PRs to Juba, PRs from the field can not be sent to Nairobi or any other location directly.

1.7. REQUESTING-INITIATING PROCUREMENT

1. Who may request a Purchase?

A IRC staff member may request a purchase of goods or services when it is required for IRC program or operational purposes.

2. How is a purchase requested?

Purchases are initiated by submitting a completed and approved Purchase Request Form to Logistics.

The requesting staff member is responsible for providing Logistics with all the information and specifications necessary to make a correct purchase and to ensure that Purchase Requests are fully reviewed and approved by the relevant managers.

3. Who can approve-authorize a Purchase Request?

The total estimated value (not the value of individual items listed) of the Purchase Request determines who is eligible to approve-authorize the purchase. Purchases can be authorized only by staff who are included on the Authorization Schedule and only within their limit.

The person authorizing the Purchase Request must verify that:

a) The purchase is required for and eligible under the grant, and b) That sufficient funds are available within the applicable budget

Splitting Purchase RequestsPurchase Requests must not be artificially split to avoid the IRC authorization schedule

Separate PRs should be used for different types of materials – i.e. don’t mix purchasing office supplies with purchasing construction cement, or food with electronic accessories

A single PR should normally be used if the items/services are being charged to the same budget line/account code

A single PR should normally be used for a complete activity – i.e. for a workshop a single PR would cover room, rental, refreshments, participant travel, other workshop direct costs

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A single PR should normally be done to cover the total cost of staff training ie including fees, travel, per diem etc.

1.8. IRC PROCUREMENT FORMS

1.8.1. Purchase Request 1-01

What is it for?

The Purchase Request is the basis of the procurement process. The PR serves four specific functions: Commits funds from the budget Provides the specifications of goods or services required Provides required delivery/service dates Authorizes logistics to begin procurement process

The accuracy and completeness of the PR is essential to minimize procurement time and/or to avoid the purchasing of incorrect items.

When is it used?

Not needed for hiring staff Not needed for travel – (Travel Request used) Not needed for purchases below $500 Required for all other procurement of goods or services

What is the process?

Requested by - The Purchase Request is to be filled by the staff member who wants the materials or services. Some points to consider:

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If the price is not known – consult the current price lists or logistics; be sure to include transport costs if applicable

Enter the cost center – showing where this will be chargedWhen multiple items are needed (i.e. 20 different items – add a list to the PR (excel sheet not new PR page – show the total on the PR; Signatures for Requester, Verification, Finance Review and Approval must be the same on both documents (1-01a) DO NOT USE SEVERAL PR FORMS FOR ONE PURCHASE!

Make sure the description is specific so logistics knows what item to buy

Recommended by - The PR should be verified by the Program Manager or Coordinator who knows whether the goods/services are required for the program that they are allowed under the terms of the grant and that budget funds are available.

Verified by/Finance - Finance will verify the PR checking on the budget availability and possible compliance issues.

Approved - The Approved signature is based on the IRC Authorization Schedule. The person authorizing the PR needs to ensure that:

The materials/services on the PR are required for the implementation of the program to which it is being charged

The materials/services are allowable under the standard donor regulations and are allowable under the specific grant

A required delivery date is stated and is reasonable (i.e. allows enough time for procurement to be completed)

The required delivery date is prior to the end date of the grant to which the materials/services are being charged. (Also considering distribution and time required to use the materials/services.)

The specifications of the materials/services are detailed enough to allow procurement to proceed (no guessing at specs required)

The estimated cost appears reasonable in the currency stated The PR is fully coded/charged correctly and has been reviewed by Finance The PR is correctly verified (i.e. verified by the budget holder) All signatures are dated and over printed names and titles

The requesting staff member is responsible for providing Logistics with all the information and specifications necessary to make a correct purchase and to ensure that Purchase Requests are fully reviewed and approved by the relevant managers.

Many common errors or potential problems that affect the purchasing process can be identified and/or avoided during the PR process if the staff involved understand and fulfill their roles and responsibilities

PR Forms are printed in book format with two carbon copies. PR should be pre-numbered.

Distribution: Original – to Logistics; Pink Copy to Finance Department, Yellow Copy to Requestor

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1.8.2. Request For Quotation 1-02

A formal request must be submitted to potential vendors by the Logistics Department to ensure competitive bidding. The Logistics Department must send the RFQ to the vendors indicating date of bid submission and specifications requirements.

Distribution: (Computer generated forms)

Supplier (original) Finance (copy) Logistics Files (copy)

1.8.3. Bid Analysis Summary 1-03

This form is completed by the Logistics Department to summarize the bids received and documents the basis for supplier selection. The quotes or bids must be in writing (on company letterhead and preferably stamped) and valid for a specified amount of time. Item specifications and their cost in the Bid Analysis Summary must match those on the bid submitted by the supplier. Transportation costs, if any, have to be taken into account and shown clearly on the Bid Analysis Summary and considered whilst comparing prices. IRC makes purchasing decisions based on the best value for money, so while normally the lowest price will be selected this is not required. Suppliers who offer better quality, faster delivery, more favorable payment terms, better guarantees and/or superior service may be selected even though their price is not the lowest if this provides IRC with overall better value for money. There must be clear justification when this occurs to support the selection of a higher priced supplier -this must be written in the Recommendation section of the Bid Analysis Summary. The same applies for those cases where only one or two suppliers are trading in the desired goods; this should be clearly stated on the Bid Analysis Summary.

What to look for:

1. Approval on the Bid Analysis Summary has to be sought in accordance with the Authorization Schedule.2. Compare written prices to actual bids – Are bids attached? Does the BAS reflect the price and terms specified on the bids?

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3. If a sealed bid process – check all steps have been fully documented and documents are in procurement file4. Compare to Purchase Request – Are they the goods requested? Is the price within 10% of the PR estimated price?5. Brand names – Were brand names specified in the PR? If so, what was the justification? Generally this is not allowed as it constrains competition6. Is the grant being charged for the goods still open? Will proposed delivery time get goods to the program before grant ends? Are there any donor compliance issues?7. Recommendation – Does what is written explain why the supplier was chosen? This should be self explanatory from reading the justification

When you need to analyze cost of multiple items which doesn’t fit into BAS, use Comparative Statement Form as the attachment to BAS (1-03a).

1.8.4. Purchase Order 1-04

The Purchase Order is the document confirming the details and terms of a purchase to be made from a supplier and once accepted by the supplier, represents a legal commitment between IRC and the supplier. When the Purchase Order does not facilitate full documentation of the transaction a contract must be used (explained in next section).

The Purchase Order will be completed by Logistics / Procurement and submitted, with the supporting procurement file, for signature by the appropriate signatory – depending on the value.

Before signing the Purchase Order, check that the…

- PO is supported by a PR and required bidding documents & analysis

- Grant is still open and delivery is before end date

- Delivery location and schedule is correct- Vendor is correct – name & address- Currency & payment terms completed- Descriptions are complete- Quantity, unit cost & total accurate

Person signing must be an authorized signatory and the amount must be within their limitPO should be signed by both IRC and the supplier.

PO Forms are printed in book format with two carbon copies. POs should be pre-numbered.

Distribution: Original – to Supplier; Pink Copy to Finance Department, Yellow Copy to Logistics

1.8.5. Contract 1-05; 1-06; 1-06a; 1-07

A Contract is used to document the nature, terms and conditions of a transaction as agreed to by both parties. As with the PO (which also constitutes a contract), a contract represents a legal commitment between the IRC and the supplier.A contract is used

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When a simple PO does not facilitate full documentation of the agreement. When non-standard IRC terms and conditions are agreed to (for example: multiple deliveries,

advance payments). For in-country purchases with a value greater than $20,000. For construction projects, leasing transactions and provision of services

IRC standard procurement contracts should be utilized in a way to conform to host country laws and business practice.

Contract coding: Example; IRC/JU/GX336/PRC/07/001IRC / T6 code / T1 / 3 letters for type of contract (SRV-service, PRC-procurement, COS-construction)/ 2 digit for calendar year / 3 digit sequential numbering for all contracts in your field office—NOT BY DEPT.

The use of vendor contracts is discouraged though may be done on an exceptional basis. Supplier or contractor contracts can only be used once they have been reviewed by Logistics to ensure adequate protection for IRC.

1.8.6. Delivery Report 1-08

The purpose of the Delivery Report is to confirm goods are delivered by the supplier and received by IRC logistics staff. The DR should be signed by both parties, supplier and IRC, but prior to signing signatories must cross check that the delivery matches the Purchase Order, that the right goods and quantities are supplied. Staff should also note if any goods are damaged and if so how a replacement will be arranged.

A copy of DR should be submitted to the Finance Department along with the Invoice for the payment process to begin.

1.8.7. PR Tracking 1-09

Purpose: The PR Tracking Report is the IRC tool for tracking the progress of purchase requests and the procurement process. Logistics also uses it to measure and monitor the time taken for the various steps in the process.

Produced: Weekly – every Friday

Distributed: Monday; All technical units, Field Coordinators/Manager, Administration, Finance, Senior Management

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Information: The report shows the details of all the items requested on each Purchase Request and status of the process included PO date – if the Purchase Order has been issued and either actual dates or estimated delivery (ETA) goods are received By IRC – in Juba or in field site

Responsibilities: Logistics

- update all PR-procurement within 24 hours of receipt in logistics- review status and do corrections/updates by end of day Friday- distribute Monday am

Requestors - check report and verify any new PR’s has been added, - monitor progress against required delivery- advise logistics of any omissions or problems

Field Offices - verify PR’s submitted to another location have been added, - monitor progress- advise logistics of any omissions or problems

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IP- in process, WFD - waiting for delivery, PIP - payment in process, CC - case closed, V - void

Status Abbreviations; their meaning:IP – In Process = Bid Process UnderwayWFD – Waiting for Delivery = PO issued awaiting delivery from suppliersPIP – Payment in Process = Invoice and DR submitted to finance for paymentCC – Case Closed = Procurement complete & goods received V – Void = PR cancelled

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1.9. PROCUREMENT FILING REQUIREMENTS

The following documents in the following sequence, constitutes a complete and auditable Procurement File,

1. Payment Request2. Vendor Invoice3. Delivery Report / Proof of Receipt4. Purchase Order5. Bid Analysis Summary, if applicable6. Donor waiver, if required7. Purchase Request8. Request for Quotation9. Winning Supplier Offer10. Any additional documentation that is required to support or clarify the transaction

Original documents are submitted to Finance. Logistics will maintain a complete set of duplicate documents and the unsuccessful supplier offers.

In the case of multiple orders generated by a single PRLogistics to maintain a dedicated file for original PRs (only those with multiple orders)A copy PR will be generated to support each order or payment request. This will facilitate ease of access to the original PR in the event that verification of the copies is required.

Logistics will archive complete procurement documentation in the same document sequence detailed above and, by GRANT and SEQUENTIALLY by PURCHASE ORDER.

Purchases made without a PO will be filed by Grant and sequentially by Purchase Request number.

Logistics are responsible for managing and fully documenting the procurement process.

1003 Procurement (Heading Only)

1003 Procurement (Heading Only)1003.1 PR Tracking & Metrics1003.2 Open PRs1003.3 Closed Procurement Files (Heading Only)1003.3.1 OFDA1003.3.2 BPRM1003.3.3 DOL1003.3.4 USAID1003.3.5 UNHCR1003.3.6 ECHO1003.3.7 EU1003.3.8 SV1003.3.9 Dutch Government1003.3.10 Other Government1003.3.11 Other Private Donors1003.4 Cancelled PRs1003.5 Original PRs (for multi-order purchases)1003.6 Contracted Suppliers (Heading Only)1003.6.1 Supplier “A” 1003.6.2 Supplier “B”1003.7 Pre-Qualified Suppliers (Heading Only)1003.7.1 Supplier “1”

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1003.7.2 Supplier “2”1003.8 IRC & Miscellaneous Price Lists1003.9 Market Surveys1003.10Unsolicited Supply Offers

GENERAL REMARKS ON PROCURMENT:Finance are responsible for ensuring that all required documents are present (per the above list) and vendor payment. For all procurement over US$500, Finance will sign off on the Bid Analysis having reviewed the file for completeness. Finance are not responsible for supplier selection.

Finance and Logistics have separate and equal roles in the procurement process. Respecting each others role and working collaboratively will maximize the efficiency of the process whilst minimizing the number of audit errors.

Very Important 1: Overseas offices are required to submit the Due Diligence Sheet (AF-6) to the Grants Unit attention of Benedicte Eagleton benedictee@theirc.org all proposed sub-grantee, sub-contractors, and each vendor for whom you will procure in excess of $5,000 in goods and services, whether funded with US Federal funds or not. Form must be provided to Grants Unit NY HQ prior to execution of the sub-award agreement or vendor relationship.Upon receipt of the info, Grants Unit will run it against the anti-terrorist database and confirm clearance with the field. Written confirmation should be printed and attached with other documents on the procurement file.Logistics Coordinator in Juba will be in charge for this process.

Very Important 2:IRC is subject to and must comply with U.S. export control and economic sanctions laws. Generally, these laws prohibit or restrict business and financial dealings with certain countries, governments, groups, and individuals, as well as exports (including re-exports from third countries) of certain goods, equipment and technical data that are U.S. origin or foreign manufactured but contain U.S. component parts. IRC is committed to conducting its activities in compliance with U.S. export control and economic sanctions laws, and it is imperative that IRC staff, wherever located, fully comply with these laws. Failure to comply with U.S. export control and economic sanctions laws may result in significant fines and penalties, including possible imprisonment.

The BIS license requirements apply to all IRC programs in Sudan, regardless of whether the program is funded by U.S. government grants. Moreover, IRC staff are not permitted to purchase US-origin equipment on the Commerce Control List or foreign manufactured equipment that contains more than de minimus U.S. component parts in Sudan.

Details are outlined in the “IRC’s Export Compliance Policy” attached as a part of this manual.

Logistics Coordinator in Juba will be in charge for obtaining BIS license.

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2. WAREHOUSE (INVENTORY) MANAGEMENT

The logistics department is responsible for warehouse management which will include receiving, storing (protecting), dispatching and accounting for program materials.In each office, designated staff will be assigned as responsible for the receipt of all goods entering IRC warehouses or storage facilities. The receiving office will confirm receipt of materials and supplies, and report to the Logistics Coordinator/Manager/Officer, any damage or other contractual claims arising from shipments. Projects that procure and store materials independently of Logistics must follow the same procedures outlined below.

Each site needs to have Authorization Schedule outlining staff with authority to receive and release goods from the warehouse.

There are a number of factors that have to be taken into consideration while choosing warehouse facilities. Warehouse facilities should ideally be single storey structures. Most important to consider are the following:

Location and site - security, proximity to IRC’s office, access 24/7, availability of utilities etc. Building size - nature of supplies that will be stored, room for physical manoeuvring, it is advisable to choose building that is grater then requiredRoofing and flooring – should be watertight, prevent access to different animals, prevent from leakages, good drainage should be ensuredUtilities and services – access to electricity and water, toilette

2.1. DOCUMENTATION

The logistics department is responsible for accurately and transparently documenting all warehouse activities.

Warehouse records will enable accurate inventory management and is a significant tool in detecting possible theft at an early stage. Only logistics staff can receive and release materials from the warehouse. Access to the warehouse/storage facility should be restricted only to senior management and logistics staff.

When materials first arrive to IRC facility they have to be accompanied either with a:

2.1.1. Delivery Report 2-01

If the goods are delivered to IRC warehouse facility directly from the supplier this is is recorded thorough a Delivery Report (see section on Procurement for more detailed explanation of the same form). The Delivery Report is used to confirm receipt of materials purchased by (or dispatched to) the IRC.If the goods are delivered from another IRC location then Waybill is used and not Delivery Report.

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2.1.2. Warehouse Register 2-02

The function of the Warehouse Register is to keep a daily record of all warehouse activities. The warehouse register is an official document and as such entries must be entered in pen and may not be erased. Mistakes should be indicated (crossed out with a single line) and initialed. Where possible the register must be in the form of a bound journal with numbered pages.

The warehouse register will be maintained by the Warehouse Supervisor and will be kept for all warehouses/stores regardless of size. Register entries will include:

Type and quantity of items received or issued. Reference to all shipment documentation, Store Releases, Waybills, etc. Details of vehicles transporting goods Any accidents/incidents at the warehouse Warehouse Inventory

2.1.3. Waybill 2-03

The Waybill is a transport document whose function is to precisely detail a shipments’ content, point of origin and destination and to clearly state who is responsible for the shipment at each stage in its movement.

For inter-IRC shipments, the waybill is also the first document in the receiving warehouse’s accounting of materials.

The Waybill should be printed in bloc (notepad) form, auto-copy, original with three copies, each setsequentially numbered. Distribution is as follows: Copy #1 Retained on file by the originator.Copy #2 For the transporter.Copy #3 For the receiver.Original Returned to the originator (once completed).

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2.1.4. Packing List 2-04

Multiple items may be packed together in one single carton. The packing list details what the carton contains. While cartons are in storage, packing lists should be located on the outside of the carton to facilitate ease of identifying the contents. For shipping cartons, it is better to place packing lists inside the cartons when shipping them, unless customs or the transporter requires an external packing list. A photocopy of the packing list must be retained by Logistics for the file.

2.1.5. Stock Card 2-05

Once goods are delivered to the warehouse they should be registered thorough the use of a Stock Card. The function of the Stock Card is to document the movement and balance of individual items in the warehouse. The Stock Record is a single copy document. It is an accountable document and is the basis for inventory taking and therefore must be kept fully up to date and each entry signed for.

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2.1.6. Bin Card 2-06

Once stored, materials will be physically marked with a Bin Card. The Bin indicates the item description, project, donor, grant and actual quantity stocked. Individual receipt and dispatches are not recorded on the bin card, only the change in total quantity stocked. The easiest format is white plastic cards used in conjunction with board markers.

2.1.7. Store Release 2-07

Store Releases should be used to request the release of materials from the warehouse. Approved SR should be presented to logistics staff in charge of warehouse management. Managers can only approve the release of materials belonging to their own programs (i.e. procured from their own budgets).

Logistics staff can not approve the release of program materials, they can approve materials that only belong to operations.

The Store Release should be printed in bloc (notepad) form, auto-copy, original with one copy, each set sequentially numbered.Distribution is:Original Submitted to the Storekeeper.Copy #1 Retained by the approving officer.

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2.1.8. Warehouse Stock Inventory Tracking Report 2-08

Items received will also be entered into the Warehouse Inventory Tracking Report. The primary purpose of this is to enable Logistics to report stock specific information to donors and project in a prompt and accurate fashion. This sheet should be updated as changes occur and a full report sent on a monthly basis to the Logistics Coordinator/Manager or Field Coordinator/Manager of the relevant site. Reports should also be shared with senior managers of projects holding the materials on stock. This will help managers track what materials they have left on stock in order to avoid purchasing of something that already exists in the warehouse.

2.2 DISPATCH / RELEASE OF MATERIALS

Generally, materials will only be released from storage upon receipt of program authorization (Store Release). Warehouse staff may not release materials without this authorization. Logistics must therefore hold a copy of Warehouse Authorization Schedule, copy of documented Program signatories.

2.2.1 Collected Materials

If materials are to be collected from the storage facility, the individual receiving the materials should sign the Store Release From. They will receive a copy of the SR. Once materials are released, tracking becomes the responsibility of the consignee and the relevant program.

2.2.2 Delivered Materials

Should a Store Release include instructions that materials be delivered to another location, logistics will prepare and ship the materials on a Waybill. Note that should a single vehicle make deliveries to multiple locations on one trip, logistics must generate a waybill for each location. Signed original of WB when signed by final recipient must be returned to the Originator.

2.2.3 Materials on Loan

The warehouse may store materials or tools that are withdrawn and returned by programs on a daily basis. This will result in a “real” increase or decrease in stock levels. In such cases, the warehouse manager should open simple “sign in/out” loan sheet for each item.

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2.2.4 Returned Materials

For variety of reasons, materials dispatched may be returned to the warehouse. In these cases the warehouse manager will generate a Delivery Report that cross references the applicable Store Release and Waybill and details the materials returned. “RETURNED MATERIALS” must be clearly written on the Delivery Report to distinguish the materials from a new order or shipment. The Stock Card and spreadsheet inventory will be adjusted accordingly and will note that the material was returned.

It is important that goods or materials purchased under certain grants, are entirely distributed before the grant ends otherwise it could be considered as a disallowable cost.

It is also very important to have supporting documents for materials handed out to beneficiaries either individuals or group.

2.2.5 Carrying out an Inventory Check

A valid inventory check requires time and concentration. It cannot be realistically carried out at the same time as normal warehouse activities; therefore, a cut-off point must be made and the check undertaken outside of working hours or the facility closed for the period of time it takes to complete the check.

There are two parts to an inventory control:

a. Checking physical stock against inventoried stockb. Verifying that stock movement records support the documented balance

1. Generate a full inventory as of the cut-off point based on warehouse documentation.2. Generate an inventory list without the current stock levels. This is the form that staff

will complete as they physically count each item held in stock.3. Make the physical count3. A supervisor will undertake random counts behind the counting team to verify

accuracy.4. Compare the physical count with the inventory generated at the cut-off point.5. Where there are discrepancies, check back through warehouse documentation for

errors or omissions and make a physical re-count of the items.6. Whether there are discrepancies or not, select a manageable number of control items

to check in detail. A supervisor should take representative selections, including high and low turnover items as well as small “attractive” items.

7. For control items, check that all relevant documents cross-reference each other. Check total quantity received, total quantity dispatched and current stock record quantity. Quantity dispatched plus quantity in stock should equal quantity received.

2.2.6 Stock Level Adjustments

Should a discrepancy be noted between the documented and physical stock levels, the Logistics and Warehouse Supervisor/Officers have a responsibility to fully investigate the circumstances, determine if possible the cause of the difference and to take the appropriate actions to prevent a reoccurrence of the error. The following steps should be taken:

a) Check receipt and dispatch documentation for mathematical errors or omissionsb) Check that the warehouse register agrees with the documentationc) Check that the items have not been stored elsewhered) Question both warehouse and security (if applicable) staffe) Check for unauthorized entry

Should the deficit be due to mathematical or documentary error, correct the appropriate entries. Note that when making corrections, entries should be crossed through with a single line and the correct entry

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made next to it. The correction should be initialed by the Logistics Coordinator/Manager and explanatory notes attached if required.

Should the cause of the deficit be determined as theft the Logistics Coordinator/Manager must take the appropriate actions, including police involvement where applicable. Besides investigating the theft, a police report will be required for any insurance claim.

2.3. FILING

The following filing system should be used for warehouse management.

1004 Inventory Management (Heading Only)

1004.1 Warehouse Register (place holder only)

1004.2 Warehouse Inspection Reports (heading only)1004.2.1 Logistics Coordinator monthly1004.2.2 Warehouse Manager Cycle counts1004.2.3 Spot Check Records

1004.3 Discrepancy Reports

1004.4 Disposal Documentation / Reports

1004.5 Delivery Reports

1004.6 Waybills (heading only)1004.6.1 Waybills – Goods IN1004.6.2 Waybills – Goods OUT

1004.7 Store Releases

1004.8 Stock Cards

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3. ASSET MANAGEMENT

3.1. ASSET DEFINITION

Assets represent part of IRC’s financial status and as such are accountable and will be reviewed/inspected by an auditor during every financial audit. IRC has an obligation to register, track, maintain and report on all purchased or donated and or loaned assets.

Throughout IRC missions, its programs will purchase wide range of equipment, property and supplies in order to carry out its works. It is important to distinguish the difference between each category in order to more effectively manage them.

AssetsAssets are defined as having an acquisition cost of $1,500 or more. Generally equipment such as vehicles and generators that are expected to perform over a number of years.

Attractive Items - This category includes items that are not necessarily assets but that IRC wishes to formally track and therefore will be included in an asset list but will not be reported to a donor unless required which is usually specified in the award contract.

Examples would be mobile phones, satellite phones, digital cameras, radios, USB memory disks, scanners, cell and Thuraya sim cards or any item that is highly susceptible to misappropriation.

Property - covers all durable (non-asset or attractive) items that which are purchased for daily operations. For example office and domestic furniture, fans, irons, etc. fall into this category.

Inventory - Generally consumable items that are stored until use or distribution. This category can range from water & sanitation supplies through emergency Non-Food Items (NFIs).

It is important to understand that IRC’s definition of asset or inventory can be different then the donor’s. Each donor has different but similar definitions of assets and reporting requirement.

3.2. ASSET PURCHASE AND DOCUMENTATION

The procurement of all assets as defined earlier, regardless of value, must be approved by the Logistics Coordinator based in Juba.

It is imperative that the registration, marking and tracking of assets is initiated upon receipt of the item and at the onset of a program otherwise it is almost impossible to generate an accurate register of assets “after the fact”.

Assets should always be delivered to the Logistics Department first. The Logistics Department should cross check to determine who placed the order and assign accordingly. Before assigning the asset to a certain individual or office, assets should be marked with an Asset Tag and all relevant information entered into the Asset Tracking Sheet (see next page).

Each site should have one logistician assigned for asset management.

Tags should be placed on equipment where they will be easily visible but do not interfere with normal use.

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3.2.1. Asset Register 3-01

The Asset Register must be maintained by the Logistics Coordinator/Manager. Where possible it should be in the form of a bound logbook with pre-numbered pages so that any tampering is evident. One page for each asset is made manually and cannot be erased. Errors should be indicated with a single line through them (no white-out) and initialed by the Logistics Coordinator/Manager. The register will record: All entries into the asset register must be signed by the person making the entry.

The assigned Asset Number The asset description The category The type Manufactures serial numbers Donor, Grant, and PR number Cost in the currency of purchase (and $

equivalent where applicable) The assets title holder Date received The location or department to which it is

assigned

It is crucial to register all assets as soon as they are received.

3.2.2. Asset Inventory Tracking Sheet 3-02

The Asset Tracking Sheet should be updated as changes occur (not after one week for example) and an updated report sent to the Logistics Manager based in Juba, who is responsible for compiling the master list containing information on assets and property in each location.

A physical check should be carried out every three months. After a physical check is completed, lists should be printed and signed by the person performing the check and person responsible for that site, i.e. Field Coordinator. Hard copies should be kept on file and one signed copy should be sent to Juba Logistics and Finance Department for their files.

Field Coordinators should do regular spot check to determine if lists are accurate.

Every change of location or user of an asset should involve notification of the logistics department in order for proper accounting.

Project staff who are issued with, or are responsible for assets, are obliged to notify Logistics of any change in status or location of an asset. Under no circumstances are project staff permitted to reassign assets without consultation from the Logistics Department.

Acquisition cost is considered to be the total cost of bringing the item into service – ex-works price plus shipping, handling and taxes if any.

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Asset Inventory Tracking Sheet Template

CATEGORIES Computer

All computer and computer related items. Sub-categories would include, laptop, CPU, monitor etc

VehicleAll transport and related items. Sub-categories would include 4x4 Station Wagon, 4x4 Twin Cab Pickup, motorcycle etc

CommunicationsRadios, phones e.t.c. and accessories. Sub-categories would include HF, VHF, Satellite etc.

Office equipmentSub-categories would include fax, photocopier etc

Domestic EquipmentSub-categories would include refrigerator, gas cooker etc

Power SupplyAll electric generating equipment and accessories. Sub–categories would include generator, solar equipment, battery, transformer etc

Attractive ItemItems to be tracked but are not reported as Assets. May include GPS units etc

Logistics may add Categories if required. Of obvious importance is that the allocation of items to categories must be logical and consistent.

StatusThe status of an asset should be described as one of the following.

S Serviceable (full working order) TSFR Transferred (to another IRC program)US Unserviceable (beyond repair, still in possession) DSPD Disposed (to scrap / garbage) DMGD Damaged (can be repaired)RPR To RepairDNTD DonatedRTND Returned to donorSTOL StolenLOST LostSOLD Sold

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3.2.3. Equipment Issue/Receipt Form 3-03

After the Asset has been tagged and registered in the Asset Tracking Sheet, the asset can be formally released and assigned to a staff member. Certain assets such as laptop computers and handheld radios, satellite phone etc. will be assigned to individuals. Individuals are responsible for the asset(s) assigned to them and will sign Equipment Issue/Receipt Form for receipt of such assets. Copy will be held in individual personnel files

Project staff who are issued with, or are responsible for assets, are obliged to notify Logistics of any change in status or location of an asset. Under no circumstances are project staff permitted to reassign assets without consultation from the Logistics Department.

3.3. ASSET LIABILITY IN CASE OF LOSS, DAMAGE, THEFT

In case an asset is lost, damaged or stolen, a written report needs to be submitted to the Logistics Coordinator and copied to the Deputy Country Representative.

IRC retains the right to require individuals to partially or fully reimburse the acquisition or repair cost of any asset under their responsibility that is lost or damaged due to negligence. This will be resolved on a case to case basis.When a staff member comes to the end of their mission all assets should be handed over to logistics. Logistics will document the return of assets through the Asset Receipt/Issue Form which originally recorded the assigning of assets to that individual.

In case asset is not returned to IRC before departure, value of the same will be deducted from staff’s salary.

3.4. ASSET DISPOSAL

For any assets purchased with donor funds, IRC shall observe all the donor's terms and conditions governing the use and disposition of the assets. These terms and conditions may occur during the grant period or after its expiration, and may include: requirements and conditions for selection, purchase, use and disposition.

Assets may not be disposed of without, at minimum, the documented approval of the Deputy Country Representative. The Deputy Country Representative and Logistics Coordinator have a responsibility to ensure that all procedural and documentary requirements have been met prior to asset disposal.

It is recommended that the Deputy Country Representative contact the donor representative under which grant the asset was acquired or provided and give all the relevant details of the asset, including the manner of disposal. (some donors generally retain control over the assets purchased with their funds and must be returned).

If the asset is to be sold, also ascertain how to process funds received.

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Proceed based on donor response. Should the donor have no criteria for the specific asset, request that this be stated in writing for the file or if this is not possible to obtain generate a memo to the file documenting the relevant communication.

Assets could be disposed in various ways such as: returned to the donor, donated to another agency, sold, lost, irreparable damage, theft, end of useful life.

Supporting documentation can include: a repair estimate for unserviceable items, a police report for stolen items, an internal report detailing the circumstances of loss, donor instructions or approval for disposal, certificate of donation.

Do not remove the assets from the Asset Tracking Sheet Inventory once it is disposed but add under the status column: Disposed. It can be filtered out for reporting purposes but the data is more accessible in the inventory then through

All documentation regarding disposal of assets should be retained in the office under separate file.

3.5. PROPERTY

Items in this category include all durable (non-asset or attractive) items that the Program or Operations purchases for its daily administration. For example office and domestic furniture, fans, irons, refrigerators, cooker, landline telephone units etc. fall into this category. Property requires tracking to avoid duplicate purchases and misuse or misappropriation.

At the simplest level, property tracking is easiest done with a spreadsheet Property Tracking Sheet for recording (3-10)

Property requires less detailed information. For example, desks and chairs do not need to be individually recorded, just the total number of similar models and an average purchase price and the site in which they are being used. Property should be marked as belonging to the IRC using a label (not IRC asset tag) or directly with a marker pen on property that a label may easily come off, like an iron for example. Print labels with numbering on labels should look like: JU/P/001 (where JU is office initial; P is Property and 001 is number of that item). Reporting requirements are the same as for assets.

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JU/P/001

Property Tracking Sheet

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3.6. FILING

1005 Assets (non-expendable property)

1005.1 Asset Register1005.2 Asset Inventory1005.3 Monthly Asset Reports1005.4 Asset Allocation to Individual (heading only)1005.4.1 Staff member1005.4.2 Staff member etc1005.5 Individual Asset Files (heading only)1005.5.1 Communications (heading only)1005.5.1.1 HF1005.5.1.2 VHF1005.5.1.3 Satellite1005.5.1.4 Miscellaneous1005.5.2 Computer (heading only)1005.5.2.1 Desktops1005.5.2.2 Laptops1005.5.2.3 Servers1005.5.2.4 Printers1005.5.2.5 Miscellaneous1005.5.3 Office Equipment (heading only)1005.5.3.1 Photocopiers1005.5.3.2 Phone systems1005.5.3.3 Miscellaneous1005.5.4 Domestic Equipment (heading only)1005.5.4.1 Refrigerators1005.5.4.2 Cookers1005.5.4.3 Miscellaneous1005.5.5 Power Supply (heading only)1005.5.5.11005.6 Asset Transfer Records (heading only)1005.7 Asset Disposal Records (heading only)

1006 Property (Heading Only)

1006.1 Consolidated Listing1006.2 By location (heading only)1006.2.1 Location ‘A”1006.2.2 Location “B”1006.3 Property Transfer1006.4 Property Disposal

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