SOP Library
SOP NO:
GM-GO22
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Title:
Guidelines on the Conduct of the Bag-to-Bag Inventory Taking for the Pilot Implementation of the e-IFOMIS Project
Date Approved/Issued:
06/16/2010
Date Effective:
06/16/2010
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
1.
A bag to bag count with 100% weighing shall be conducted in NFA warehouses in the e-IFOMIS pilot areas prior to the implementation of the e-IFOMIS project to ascertain physical existence of inventory as reflected in the financial statements. The bag to bag count shall cover the following:
a.
Inventory Items for Sale
b.
Miscellaneous Inventories
c.
MTS
d.
By-Products
2.
All grains stocks/by products and MTS stored in NFA owned and leased warehouses storage facilities shall be counted. Stocks in silos shall be unloaded and put in MTS to determine actual weight.
3.
All inventories held in trust by the NFA shall also be included in the count to ascertain their physical existence.
4.
An inventory of used and unused accountable forms under the accountability of the Warehouse Stock Accountable Officer shall also be included in the bag to bag inventory taking. All unused accountable forms shall be surrendered to and properly received by the Supply Officer. Incoming Warehouse Stock Accountable Officers shall be issued new sets of accountable forms.
5.
Receipt of grains stocks and its by-products and MTS shall be temporarily suspended in the warehouse during the count. On the other hand, issuance of stocks can continue provided that the proper cut-off documents are determined.
6.
The Provincial Managers shall be responsible for the proper scheduling of the inventory counts in warehouses in their area to ensure that marketing operations in the province will not be disrupted.
7.
Physical transfer of stocks shall be made within the warehouse to save on cost. Strategies must be employed by the regional/provincial management to create enough space in the warehouse to provide for repiling of stocks being counted (ie. disposition of SMDP stocks and damaged stocks, issuance of palay to milling) prior to start of inventory count).
8.
Leasing of a temporary warehouse for the purpose of transferring stocks to facilitate counting may be an alternative but should be considered as the last resort.
9.
The inventory balance in the warehouse per stock report shall be reconciled with the books before actual counting of stocks is conducted. Any variance shall be determined and corresponding adjustments shall be made in the books or in the stock reports as the case may be. The reconciled balance per stock report/books shall be compared with the actual quantity of stocks based on the bag to bag count and the difference, if any, as of the established cut-off date shall be the basis of the accounting unit in adjusting the provision for inventory variance account and in setting up the shortage or overage.
10.
The use of hook or “gantso” by the labor force during the count shall be strictly prohibited to minimize incidence of busted bags.
11.
To facilitate counting, all grains stocks in the warehouse must be properly piled and segregated. Empty sacks must be bind in bales (500 pcs/bale for brand new plastic MTS, 250 pcs/bale for brand new jute sacks and 25 pcs/bale for second hand and unserviceable MTS).
12.
All truckscales/platform scales must be properly calibrated prior to the start of the bag to bag inventory count. Calibrators should be on standby to re-check the accuracy of the platform/truckscale upon resumption of the bag to bag count. The calibration and re-checking should be done in the presence of the Provincial Office (P.O.) Inventory Committee.
13.
The actual quality of stocks shall be ascertained by the P.O. Inventory Committee during the bag to bag inventory count. For this purpose, the PSQAO shall conduct quality assessment of the grains stocks prior to the scheduled bag to bag count to establish their actual quality condition. The results of the quality assessment shall be made as the basis for the classification of stocks during the bag to bag count.
14.
For security and control purposes, the warehouses where bag to bag count are being conducted must be sealed at the end of the day, except when the count is conducted in three (3) shifts and inventory count is done continuously until finished.
15.
Actual counting/weighing of stocks must be done in the presence of the Warehouse Stock Accountable Officers (both outgoing and incoming) or their duly authorized representative, and the P.O. Inventory Committee. Designation of the accountable officer’s authorized representative must be done in writing and duly notarized.
16.
The usual warehouse documents such as AI,WSI and WSR for stocks, and SIA, ESI and ESR for MTS shall be used to establish cut-off of accountability periods and the beginning and ending balance of the outgoing and incoming accountable officers. Existing policies on warehouse stock documentation, i.e., one AI/WSI and WSR per variety, shall be observed.
17.
Liquidation of accountability of stocks and MTS of the concerned accountable officer shall be immediately undertaken after the bag to bag inventory count to establish cut-off of the accountability period and avoid carry over of any shortages/overages.
18.
The bag to bag inventory count should have been completed on the nearest possible date to the scheduled installation of the e-IFOMIS program (preferably not more than two weeks).
III.
RESPONSIBILITIES
1.
The Regional/Provincial Managers shall be responsible for formulating strategies to make the conduct of the bag to bag inventory count in the fastest and in the most economical manner.
2.
The P.O. Inventory Committees shall be responsible for the conduct of the bag to bag inventory count and for the preparation of the required reports to be submitted to the Regional Office (R.O.) Inventory Committee.
To facilitate the bag to bag count, the P.O. Inventory Committees of other provinces within the region shall be tapped to be able to conduct simultaneous bag to bag count in warehouses in the e-IFOMIS pilot areas.
For this particular undertaking, the presence of a R.O. representative and a C.O. representative in the P.O. Inventory Committees as observers shall be mandatory. However, COA’s participation as observer/witness in the P.O. Inventory Committees shall be optional and not mandatory in conformance with COA’s exclusive authority to define the scope of its audit and examination and establish the techniques and methods required therefore. NFA should ensure that COA is informed in advance of the scheduled date of the bag to bag count per warehouse to enable them to witness the count if they so desire. As such, the signature of the “COA Representative” in the inventory count sheets and any other inventory reports shall be discretionary and will not in any manner affect the reliability of the documents.
3.
The R.O. Inventory Committee shall be responsible for the supervision of the different P. O. Inventory Committees in the conduct of the bag-to-bag inventory count. It shall also be responsible for the review and consolidation of the provincial inventory reports and for the preparation of a consolidated report which shall be submitted to the C.O. Inventory Committee.
4.
The C.O. Inventory Committee shall be responsible for monitoring the bag to bag inventory count conducted by the P.O. Inventory Committees. It shall resolve questions that may be raised by the Regional and Provincial Office Inventory Committees in the course of the bag to bag inventory taking.
IV.
INVENTORY REPORTS
1.
The result of the bag-to-bag count and quality audit shall be reported following the formats prescribed for 100% bag to bag method of counting in SOP No. GM-WH12.A entitled Amendment to the Revised SOP on Semi-Annual Physical Inventory Counting of Inventory Items for Sale, By-Products and Empty Sacks (MTS). The consolidated reports shall be submitted by the R.O. Inventory Committees to the C.O. Inventory Committee not more than one (1) week before the scheduled e-IFOMIS implementation.
V.
FUNDING
1.
The concerned Provincial Managers shall prepare the budget necessary for the conduct of bag to bag count in their areas and submit same to the Regional Manager.
2.
The Regional Manager shall consolidate the budget requirements of the region for this undertaking and request BTFMD for the budget allocation.
3.
Funds for this purpose shall be released to the concerned field offices following the existing "just in time remittance” system.
4.
The existing contracts for handling services and hauling services in the pilot areas shall be utilized for the bag to bag inventory count. In anticipation that the agreed volume/amount in the existing contracts will be exhausted as a result of the bag to bag count, a new bidding for said services shall be conducted to cover the remaining handling and hauling activities for the year.
This guidelines shall take effect on
June 16, 2010.
Date Approved :
June 16, 2010.
III. RESPONSIBILITIES
IV. FLOW CHART
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