CATHOLIC RELIEF SERVICES (CRS)
INVENTORY COUNT FOR FISCAL YEAR END – SEPTEMBER 30, 2017
SCOPE OF WORK FOR EXTERNAL AUDIT
CRS Country Program (CP) with inventory of donated and purchased Food Commodities, Pharmaceuticals, Bed nets, Pre-positioned goods, Program Materials, Construction Materials, etc. of USD 750,000 or greater by the end of FY2017 (on September 30, 2017) are required to engage an independent external auditor to perform observed physical stock count for the fiscal year and issue a report containing their opinion as to the accuracy of the count results. The eligible audit firms should meet the following criteria:
(1) Certified and registered to operate by governing law of the local government.
(2) Qualified under the United States Government’s “Yellow Book” audit.
(3) Have at least three years’ prior experience in undertaking physical inventory for food aid programs.
(4) Have adequate experienced staff for the assignment.
The auditor is required to observe the year-end physical count and determine:
(1) The physical existence of the inventory.
(2) The physical condition of the inventory.
(3) The effectiveness of the physical count procedures.
(4) The validity and completeness of receiving& issuing documents and inventory records.
(1) Representatives of the audit firm attend the physical count at the end of the fiscal year to observe the counting process and the diligence to capture relevant data in the count sheet.
(2) The auditors familiarize themselves with the warehouse layout, stacking process, documentation and count sheets before the count commences.
(3) The count includes all purchased and donated food commodities, pharmaceuticals, bed nets, pre-positioned goods, program materials, construction materials, etc. for which CRS has title. The inventories may be located in CRS managed warehouses and/or outside storage facilities due to lack of space. Inventoriable goods issued to sub-recipients before September 30,2017do not constitute inventory of CRS.
(4) Perform cut-off test on receiving, dispatch and warehouse transfer documents and verify against the warehouse registers and records.
(5) Check the composition of CRS inventory count team. Staff responsible for warehouse management should not be part of the count team. But they can be present during the count to respond and clarify to queries raised by the count team. Verify that the role of the count team is well defined and understood by all team members.
(6) Conduct sample or 100% count, as appropriate, and counter-sign on count sheets to attest observation of the physical count.
(7) Note the general warehouse management situations such as stacking, existence and functioning of warehouse safety and security equipment.
(8) Ensure the proper use and monitoring of inventory count sheets and tags by the count team.
(9) The movement of goods has to be suspended during the count or sufficient care is exercised if movement is allowed due to management approved and compelling reasons.
(10) Count is done simultaneously on all warehouses. Otherwise, the auditors should ascertain the existence of adequate measures to control transfer of items from one warehouse to another.
(11) Identify inventories held on behalf of third parties and document the count separately.
(12) Make a final tour of the warehouse to make sure that all items are counted before concluding the count.
(13) Reconcile the physical count with stock cards, register books and Food log records maintained by CRS office.
(14) Review shipping documents, bill of lading and packing lists of the fiscal year. Compare quantities shipped as per these documents with quantities in inventory records. Include, in the final report, quantity and type of commodities in transit at the end of the fiscal year. The commodities in-transit might be at sea, port or through in-land transportation but have not yet received at CRS warehouses before or on September 30, 2017.
(15) Examine discrepancies identified in the course of count and on reconciliation with inventory records. Recount some or the entire inventory items until satisfied with the count result.
(16) Consult CRS senior management in case of disagreement in the count and when recounting the whole inventory is necessary implying extended timetable and affecting the normal warehouse operations.
Location of Warehouses and Estimated Inventory:
(1) The auditors are expected to observe and report the physical count in all inventory locations (warehouses and outside storage facilities). Here are estimated quantities by warehouse location:
|Inventory Items – inkind|
|Location||Vegl.08||Lentils||CS8+||CS8||Sorghum||Mosquito Nets||Drugs||etc||Total Quantity|
|Into State (Central Stores)||3,383,887||3,383,887|
|Edo State (Central Stores)||2,678,900||2,678,900|
|Ondo State (Central Stores)||2,680,710||2,680,710|
|Osun State (Central Stores)||2,955,950||2,955,950|
|Kwara State (Central Stores)||1,936,336||1,936,336|
|Inventory Item – Purchased|
|Location||Construction Materials||Mosquito Nets||Drugs||Other Project Materials||etc||Total Quantity|
(1) Issue a report and opinion detailing the following:
(a) Commodity type, warehouse location, donor source and packing list and other available identifications. Separately report in-kind and purchased inventories and indicate items in poor physical condition, damaged or unfit for human consumption. Report shortages or overages and other irregularities identified during the count and reconciliation with inventory records.
(2) Submit draft report to CRS management for review and comment on or before October 31, 2017.
(3) Incorporate management comment and issue the final report on or before November 10, 2017.
(4) Send one original copy of the report directly to external auditors of CRS, RSM, by November 15, 2017.
HOW TO APPLY
Interested firms should send their expression of interest (EOI) along with a detailed proposal as attached MS word documents to [email protected] Title of the consultancy should be stated as the subject of your email.
The EOI should include but not limited to the following: Expected daily rate, personal profile, skills, competencies and suitability for the assignment as well as readiness for immediate engagement.
Applications should reach us by COB Tuesday August 29, 2017. Only qualified firms will be contacted and invited for screening.
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