Project Materials

IMPORTANCE OF STOCKTAKING AND VERIFICATION IN GOVERNMENT STORES

Chapter one

INTRODUCTION

It is not an exaggeration to suggest that stocktaking and verification is a vital exercise that every organisation that wants to be successful must engage in. This issue, stocktaking and verification, is not limited to the business sector and is not a new activity; it has existed from the beginning of humanity.

Just as life is crucial to humanity, so is stock to every organisation. Furthermore, resources or commodities in stock are essential to the operation of any organisation.

In this regard, Obuseh (2007) stated that managing materials means managing the life of an organisation, which cannot be effective without adequate stock management.

To achieve this, proper stocktaking and verification must be performed at the specified time. Meanwhile, stocktaking and verification is an exercise that no organisation should overlook, especially if they intend to achieve their goals.

1.1 Background of the Study 

Morrison (1982) defines stocktaking as a comprehensive process of verifying the quantity balance of all things maintained in stock. Stocktaking may also be defined as the check of stock of materials and components at a store with the goal of comparing the balance reflected on the stock records to the actual stocks in the bin/rack and the looks of account by valuation.

Similarly, verification involves physically checking goods to ensure that it is accurate. This type of exercise is typically performed on a regular basis, as opposed to stocktaking, which is scheduled prior to the exercise. It is important to highlight that stocktaking and verification are critical to every organisation.

The reason for this is that because stock represents money, it necessitates proper and strict control in order to meet the organization’s objectives or aims, which include minimising costs while increasing profits.

This analysis, stocktaking, and verification in government stores is primarily limited to the Ministry of Health in Owerri. This ministry was one of the eastern central states to Owerri, the capital of Enugu State, when it was established in 1976. It was headquartered at the government technical college on Mbaise Road.

Then, after serving from 1976 to 1997, it was relocated to the Orlu Road Secretariat in Owerri. The ministry was finally relocated to its permanent location at the new secretariat on Port Hacourt Road in New Owerri during the Udenwa regime in 2005.

The ministry has three divisions: medical, pharmacy, and public health. Dr. VincentS Udogu is currently the Honourable Commissioner of Health in Owerri, while Dr. Mrs. Nkem Onumaguru is the Permanent Secretary, and Mr. Mbadiegwu is the Director of Administrative Finance (DAF).

This ministry is divided into eight functional departments: public health/primary health care, nursery services, vector control/laboratory services, administration and finance (DPRO), development planning research and statistics, accounting administration, and medical services.

In the ministry’s organisation, the supplies division reports to the administration/finance department. As a result, this department is responsible for procuring all necessary materials and keeping them, hence the store department falls under its purview.

The supply section consists of Principal Store Officer 1, Principal Store Officer 11, Service Store Officer, Store Officer, Store Keepers, and Store Attendants.

Each of the following officers has a certain function to play in this area. To top it all off, the ministry of health in Owerri conducts stocktaking and verification through the supply division within the administration/finance department.