Stores Administration & Stockkeeping

Stores Administration & Stocktaking

Quick Answer: Stores are government property held by an MDA. The Financial Regulations require every store to be controlled through Bin Cards (an item-level tally) and a Stores Ledger (the authoritative accounting record), with goods taken on charge via a Store Receipt Voucher (the Nigerian "Goods Received Note," SF.5), verified at least twice a year by a Board of Survey, and unserviceable or obsolete items written off only within the FR 2609 thresholds.

Store records: Bin Card and Stores Ledger

• Bin Card (FR 2122-2123). A separate Bin Card is kept for each item and held in the bin with the article (or in a suitable cabinet where impracticable). All receipts and issues are entered in ink and initialed by the Storekeeper; the card is not ruled off and shows a running balance. The relevant ledger folio is quoted on the Bin Card, and the card must be entered by an officer other than the one posting the Stores Ledger — a deliberate segregation of duties that prevents one person both holding the stores and writing the accounting record.
• Stores/Inventory Ledger (FR 2108-2117). The authoritative accounting record, posted daily from store/inventory vouchers, with every entry referencing a voucher number. A separate ledger is maintained for each store; articles of the same group are kept in one ledger alphabetically. The ledger is balanced at month-end, ruled with a red line at year-end (with totals carried down), and erasures are prohibited — corrections are struck out in red ink and initialed. For Unallocated Stores, both quantity and value are recorded.

Receipts into store: the Goods Received Note

The Nigerian equivalent of the Goods Received Note is the Store/Inventory Receipt Voucher (SF.5) issued under FR 2401-2405. The Store Officer certifies physical receipt by raising SF.5, which is issued in triplicate:

1. Original — attached to the payment voucher for the stores purchased and forwarded to Accounts.
2. Duplicate — forwarded to the Stock/Inventory Verifier for independent verification.
3. Triplicate — retained in the booklet for record.

An Invoice Control Register is maintained to ensure all imported stores paid for are taken on charge. The SF.5 number is quoted on the payment voucher and the original SF.5 is attached to the LPO or Letter of Award, tying payment to physical receipt.

Stocktaking and the Board of Survey

Government stores must be inspected at least twice a year by a Board of Survey or a Stock/Inventory Verifier (FR 2701-2706). The store is closed during the survey; no issues are made without the Chairman's approval. The Board inspects a minimum of 40% of stock categories, escalating to 100% inspection where a serious discrepancy is suspected. The procedure is:

1. The Store Officer updates ledger entries up to the closure point.
2. Physical count of each category, examining serviceability.
3. Compare physical count against the Bin Card balance and the Stores Ledger balance.
4. Deficiencies are entered on SF.8 (Discrepancy Form); unserviceable items on SF.9 (Impaired Assets).
5. A report is submitted in quadruplicate (with SF.8 and SF.9) to the Accounting Officer, the Accountant-General, and the Auditor-General.

Board composition and write-off authority

The Board comprises at least three members: a Chairman (not below GL 15), the Director of Finance & Accounts or representative, a professional/technical officer, and a Procurement representative. Storekeepers and Transport Officers cannot serve on the Board. Unserviceable stores are reported on TF.147 (Board of Survey Report on Unserviceable Stores) and written off only within the FR 2609-2610 thresholds.

Write-off authority thresholds (FR 2609-2610)

Above these limits, write-off requires higher approval — the Accountant-General for ministry losses above ₦2,000,000 in general stores, and ultimately Mr. President/FEC for very large losses. Losses of funds or stores must also be reported on TF.146.

The Stores Accounting Officer and personal liability

The Stores Accounting Officer is the officer charged with the custody and accounting of stores. They must ensure postings to the Bin Card and Stores Ledger are up to date, that the Store Receipt Voucher (SF.5) is raised for every receipt, that issues are made only on an approved Inventory Issue Voucher (SF.4) or Stores Requisition (SF.12), and that transfers between stores are documented on SF.13. Under FR 2601-2608, the Stores Accounting Officer is personally liable for deficiencies unless relief is granted by the Accounting Officer, the Accountant-General, or Mr. President, depending on the amount and circumstances. Relief is granted only where the loss occurred without negligence or default — theft by force, fire, flood, or other cause beyond the officer's control.

Stock verification and reconciliation

Outside the formal Board of Survey, the Stock/Inventory Verifier (an independent officer from the Internal Audit or Finance unit) carries out periodic surprise checks, comparing physical balances against Bin Cards and the Stores Ledger and signing the Bin Card as evidence of the check. Any discrepancy is documented on SF.8 and investigated before the next Board of Survey. The 2023 Draft Federal FR modernises terminology ("stores/inventories") and aligns with IPSAS/IFRS, but the core controls — Bin Card, Stores Ledger, SF.5, Board of Survey, and write-off thresholds — remain unchanged from the 2009 FR.

Key forms to remember