5.6. ERMUSR 10-14-2008 - Laserfiche WebLink

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Question of Inventory Current Policy: There is no current written policy. The proposed written policy below reflects current practice with suggested changes. Proposed Inventory Policy GENERAL EIk River Municipal Utilities has inventory that is utilized for electric and water infrastructure construction and maintenance. Inventory management is an important operational issue because it affects capital requirements, costs and customer service. RECORDING INVENTORY USAGE Employees that utilize inventory on the project/work site are required to accurately record usage as follows: Determine/estimate items needed to perform the particular project/day's work Remove required items from inventory stock Transfer items to vehicle being used to travel to the project/work site Upon completion of the project/day's work, record inventory items used on the inventory sheet to be turned in for record keeping Return any unused items to inventory stock in a timely manner. INVENTORY COUNTS On an annual basis, inventory counts are to be performed and a reconciliation of any discrepancies completed to account for all inventory used and inventory still in stock. Because there are inventory items that justify more careful planning and attention, such items will be reviewed with higher frequency. Significant items (as identified by purchasing and management) will be counted quarterly. A reconciliation will be performed for any discrepancies to account for all inventory used and inventory still in stock. EQUIPMENT SUPPLIES There are equipment supplies that are not in inventory but are necessary for the completion of electric and water infrastructure construction and maintenance. Items such as chain saws, power drills, crimping tools, etc. are resource investments that need to be managed. A listing of these items, with the quantity and location of each item, will be maintained and periodically reviewed for accountability. The minimum review period will be quarterly. ENSURING ACCURACY Employees are responsible for and must take steps to ensure the accuracy and completeness of inventory reporting data. In addition, employees that utilize and transport inventory must take necessary steps to safeguard such inventory from loss or theft. When an employee submits inventory reporting data, he or she is attesting to the accuracy of the data. Knowingly submitting or approving inaccurate inventory reporting data is a violation of policy and may subject the person to disciplinary/legal action.