Employees designated to supervise storehouse operations are primarily responsible for the economy and efficiency of these operations. These employees should familiarize themselves with the nature of the accounting records maintained by Finance and Accounting Services to accumulate and distribute storehouse expense, and other accounts relating to storehouse operations. They are responsible for advising the accountable officer of storehouse finances, both debits and credits.
114S-60.701 Stores Records.
The policies and procedures prescribed herein provide for (1) recording of all receipts of property and issues of materials and supplies in a manner which will ensure a record of accountability and responsibility; (2) classifying and identifying all equipment and periodically inventorying materials and supplies in custody of the project; and (3) storing and protecting property in a manner which will ensure its proper care and safekeeping pending use on the project.
(a) The Accountable Officer is responsible for all phases of storehouse operations. The responsibility for detailed aspects of these activities must be assigned to the accountability unit in charge of storehouse operations. In order to fix specific responsibility for custody of property in storage, keys to warehouses and storage areas will, whenever possible, be issued only to the individual to whom responsibility for storehouse operations has been assigned and other individuals designated by him/her, as required.
(b) The Reclamation-wide REMMS system users manual contains detailed instructions on the operation of the warehouse program within Reclamation. To aid in determining the proper classification of property, i.e., stores, movable property, supplies, materials, etc., refer to 114S-60.502-7802.
Except as authorized by the functional sponsor of REMMS, D-7910, in connection with maintenance of property records and accounts by electronic or other machine processing methods, the following forms are prescribed for storehouse operations:
(1) Form 7-701, Request on Storehouse.
(2) Form 7-702, Requisition.
(3) Form DI-1, Requisition.
(4) Form 7-760 or 7-760A, Receiving Report.
(5) Form 7-763, Property Voucher.
NOTE: In addition to the above, other forms and formats as appropriate to related activities such as Federal Standard Stock Cataloging, Economic Order Quantity (EOQ) techniques, Federal Standard Requisitioning Procedures (FEDSTRIP), and "low sales" operations (including the traveling warehouse requisition) will be used to the extent required by the application of the stores program at individual offices.
(c) Disposal procedures in 41 CFR 101-43 and 41 CFR 101-45 will be followed.
(a) Materials and Supplies. Property items which, when used, are consumed, lose their identity, or become an integral part of other property.
(b) Accountability. The obligation of the individual or Accountable Officer to maintain adequate records for property.
(c) Responsibility. The obligation of an individual for the proper custody, care, and use of the Government property entrusted to their possession.
(d) Long Supply. That increment of inventory which exceeds the minimum essential stock level but should be retained as available for redistribution within Reclamation.
114S-60.701-71 Initiating Requisitions for Stock Replenishment.
(a) Storehouse stock will be replenished by initiating a purchase requisition in the REMMS system. Detailed instructions for preparation are contained in the REMMS Users Manual. FEDSTRIP requisitions will be prepared in accordance with procedures contained in the FEDSTRIP and REMMS Users Manuals.
(b) The Open Market requisition used in REMMS is a simplified stock record for warehouse materials and supplies where costs are charged against a STORES account. These forms are used in lieu of conventional requisition, form 7-702 or form DI-1.
114S-60.701-72 Screening Requests Against Warehouse Stock.
All requests to acquire property will be reviewed by the accountability unit to determine whether the items requested are available from stock, including but not limited to Long Supply and other sources within Reclamation.
114S-60.701-73 Identification of Materials and Supplies.
Stocks of materials and supplies will be identified in accordance with industry standards, tagging, or marking so that they may be readily identified without reference to other records.
114S-60.701-74 Shop Stocks.
Those items maintained as free issue in areas conveniently located for foremen and other workers to complete jobs requiring certain supplies and materials as identified by the office head.
These items will be managed by the following criteria:
(a) No dollar threshold established;
(b) One employee responsible for maintaining stock and controlling issues;
(c) Adequate secured storage space provided for the stock;
(d) Frequent review to avoid under or over stocking; and
(e) Yearly analysis of waste, fraud, or misappropriation.
114S-60.704 Documentation of Issues.
Government property will be issued from storehouse stocks for official use only. Warehouse property can be issued by any Reclamation employee for official purposes in accordance with 410 DM 114-60.703 and other Government employees with cross servicing agreements. Any material not needed for the purpose for which originally drawn will be returned to the warehouse.
(a) No property will be issued or removed from the warehouse without proper receipt and documentation via an approved form or documentation within REMMS.
114S-60.704-70 Determination of Account to be Charged.
Cost structure numbers should be determined by the individual requesting the property. If account numbers are not identified at the time of request, the issuing clerk should request the following information:
(a) Work being performed.
(b) Location of work.
(c) Other pertinent information to help determine proper accounting designation.
114S-60.704-71 Documenting Returns to Stores.
When returns are identified from work order requests, the cost structure number the items were issued against should be credited and the items made available for future issues.
114S-60.704-72 Documenting Transfers Between Warehouses on the Same Project.
When property is transferred between warehouses, the transaction will be processed against the REMMS system.
114S-60.704-73 Annual Inventory.
A complete physical inventory will be taken once each year of all material and supplies maintained on an electronic warehouse system. The following items are exempt from annual inventories:
(a) Shop stock as referenced.
(b) Administrative office supplies.
Other special inventories may be requested when management feels they are necessary, i.e., change in Accountable Officer, IG audits, etc. (Refer also to 114S-60.3.)
114S-60.704-74 Adjusting Overages and Shortages.
All unreconciled overages should be reviewed by local management and reported by an appropriate method, i.e., property voucher or receiving report, to adjust records. All unreconciled shortages exceeding $500 in total line item value will be reported to the next higher authority via a Report of Survey. (See also 114S-60.8.)
The instructions and guides contained herein do not attempt to cover every conceivable condition or problem that will arise in connection with the basic requirements for the storage of equipment, materials, and supplies. With a reasonable exercise of judgment and compliance with applicable safety techniques and standards, this information will enable each office to achieve the desired objectives of storage. Employees engaged in warehouse and storage operations must be instructed in safety and fire-protection regulations pertaining to these operations.
(a) Objectives of Storage. Storage objectives include maximum utilization of space consistent with adequate care and protection of property, positive item identification, and the efficient movement of property from the storage area to point of use or consumption. Storage methods and procedures will vary according to the amount and type of available space, labor and equipment, and the quantity and type of property stored. The following basic objectives are recommended:
(1) Accessibility - ease of access;
(2) Protection - security, i.e., locked cabinets, fenced compounds, etc.;
(3) Arrangement - similar items in one area, adequate nomenclature; and
(4) Rotation - shelf life, first in - first out (perishables, medicines, paints, etc.).
114S-60.704-7501 Storage of Materials and Supplies.
Stocks of materials and supplies will be stored and identified as follows:
(a) Materials Stored in Bins. Materials stored in bins will be identified by labeling each bin showing a complete description of the materials stored. Where it is necessary to store two or more different items in a single bin, identify by tagging one of each item. The nomenclatures shown on bin labels or tags should be identical to those on the REMMS warehouse numbers covering the items involved.
(b) Materials Stored in Original Packages. Items stored in original containers not already labeled should be identified by name, size, type, quantity, etc., on the containers.
(c) Large Items of Hardware. Large items of hardware such as large valves will be tagged separately to show size, type, capacity, number of the purchase order, etc.
(d) Metal Pipe and all Types of Steel. Identify by size, type, etc., on a tag or bin card on each storage rack. Color code may also be used to identify class of steel.
(e) Lumber. Identify by marking each stack by size, grade, and kind.
(f) Prefabricated Units, Shipped Unassembled, etc. Identify by tagging each component part or container. Tags should show the same item number assigned to the prefabricated unit as shown on the specifications.
(g) Salvaged and Used Materials Returned to Storehouse Stock. Identify by tagging individual pieces or containers to show manufacturer's part number, description, machine for which used, etc. In addition, the items should be identified as "used."
(h) Spare Parts Supplies With Major Equipment. Spare parts purchased under specifications and contracts along with major power system equipment are generally considered as "standby parts" and may be carried in storage for long periods of time before being used. Special care should be taken in tagging or marking these parts so that they will not lose their identity. Identification tags should include the part name, manufacturer and part number, equipment identification, and specification number. Tags should be protected by plastic or heavy kraft envelopes to prevent fading.
(i) All Other Materials/Supplies. All other materials/supplies stored must be marked so that they may be readily identified without reference to other records.
114S-60.704-76 Operation of Gasoline, Oil, and Other Storage Facilities.
It will usually be necessary to provide and operate storage facilities for items such as cement, aggregate, explosives, paint, gasoline, oil, etc., at points other than at the central storehouse or in the immediate vicinity of the storehouse. The operation of these outlying facilities is a warehouse function and will be the responsibility of employees normally performing accountability functions. These facilities will be operated in conformance with procedures set forth in the FPMR 101-20 and any specific operating instructions identified by the Area Manager, Safety Officer, and/or Property Officer.
114S-60.705-70 Record and Control of Tax-Free Alcohol.
Stocks of alcohol, including those in custody of supervisors, will be stored in a locked cabinet or bin with access limited to employees responsible for seeing that its use is restricted to that for which it was acquired.
Alcohol no longer needed by the owning office may be circularized as available and excess surplus property. If the unneeded alcohol cannot be transferred within the Government, a report of the circumstances including the quantity available, value, location, and the extent of circularization will be furnished to the RSC, D-7910. Disposal as surplus property outside the Government will not be made without approval of D-7910.