Chapter 4: Issue procured goods

Goods procured through public procurement processes must be managed efficiently to ensure they reach the intended users promptly and in good condition. Issuing these goods involves systematic procedures that maintain accountability and prevent wastage, pilferage, or misallocation. In Kenya’s public sector, effective issuing of materials supports service delivery in institutions such as county governments and state corporations by ensuring that resources are available when needed. This chapter explores the processes involved in issuing procured goods and the various sources of material requisitions that trigger these issuances.

4.1 Issuing of materials

Issuing of materials is the release of goods from the stores to the user department that needs them. It is the last step of the supply cycle, because goods that were planned, procured, received and inspected only serve the entity's purpose when they reach the people who use them. Issuing must be quick enough to keep work going and controlled enough to protect public property, so every issue is made against an authorised request and recorded.

4.1.1 Meaning

Issuing of materials means the authorised transfer of stock from the custody of the store to a user, a department or a project, against a requisition, with the transfer recorded so that the stock records and the cost records are updated. In a public entity the storekeeper does not issue on a verbal request: an issue is made only when a properly authorised requisition is presented and the goods are available.

Example: a maintenance section of a water works needs 20 metres of pipe and four couplings to repair a main. The section's supervisor sends an authorised requisition to the store, the storekeeper issues the items, records the issue and the supervisor signs for them.

Purpose of issuing materials

• Meeting operational needs: timely issue gives sections the resources they need to keep working without interruption.
• Stock control: each issue is recorded, so stock records stay accurate and overstocking or stock-outs are noticed in time.
• Cost control: controlled issue reduces waste and pilferage and lets the entity charge the cost to the right user or project.
• Compliance: goods are released only on proper authority, in line with the procurement law and the entity's internal rules.
• Accountability: documented issues create an audit trail that supports reconciliation and audit.

Importance of issuing materials

• Supports service delivery: prompt issue of spare parts, fuel or consumables keeps the entity's operations running.
• Prevents misuse: authorisation and signature requirements reduce theft and unauthorised use.
• Improves stock management: accurate issue records help the procurement officer forecast needs and plan the next orders.
• Supports financial control: issue records help in monitoring expenditure against the budget.
• Strengthens internal control: separating the people who request, approve and issue reduces the risk of fraud.

Controls in issuing materials

• Authorisation limits: only designated officers may approve requisitions, within set limits.
• Segregation of duties: one person requests, another approves and another issues and keeps the records.
• Regular stock checks: physical counts are compared with the records to find differences.
• Computerised records: inventory systems improve accuracy and reduce errors.
• Record retention: issue documents are kept for audit.

Challenges in issuing materials

• Delayed approval of requisitions: slow authorisation delays work in user departments.
• Inadequate stock records: wrong balances lead to stock-outs or issues that cannot be met.
• Unauthorised issue: weak controls allow goods to leave the store without authority.
• Poor communication: misunderstandings between the store and the user cause wrong items or quantities to be issued.
• Limited staff capacity: untrained store staff may not follow the issuing procedure.

4.1.2 Requisitioning of goods for issue

A requisition is a formal written request from a user department to the store for goods to be issued from stock. Requisitioning is the process by which the user states what is needed, in what quantity and for what purpose, has the request authorised and sends it to the store. It is the trigger for every issue, and it keeps control of stock in the hands of the store and not of the users.

A stores requisition differs from a purchase requisition. A stores requisition asks the store to release goods it already holds. A purchase requisition asks the procurement unit to buy goods that are not in stock, and it enters the procurement process. When a stores requisition cannot be met from stock, the store informs the user and, where the item is a regular one, raises a purchase requisition to replenish it.

Features of a good requisition

• Authorised: it carries the signature of an officer who is entitled to approve requests for that department or budget line.
• Clear: items are described exactly, with the units and quantities in figures, so that the storekeeper issues the right goods.
• Justified: it states the purpose, such as the job, project or section that will use the goods.
• Within limits: the quantity does not exceed the user's normal entitlement or the approved plan, unless the extra is justified.
• Timely: it is submitted early enough for the store to prepare the issue, and it states when the goods are needed.

Steps in requisitioning goods for issue

1. The user identifies the need from a job, project or routine consumption.
2. The user checks that the item is a stock item and what quantity is justified.
3. The requisitioner completes the requisition, describing the items, quantities and purpose.
4. An authorised officer in the user department approves and signs the requisition.
5. The requisition is submitted to the store before the date the goods are required.
6. The storekeeper checks the signature, the description and the availability of stock.
7. If stock is available the goods are issued. If not, the user is told and either a partial issue, a substitute or a purchase requisition follows.

Example: a roads depot's mechanical section needs a set of brake pads for a grader. The section head completes a requisition for one set, the workshop supervisor signs it, and the storekeeper issues the pads if they are in stock or tells the section that a purchase requisition has been raised if they are not.

Chapter Summary

This chapter focused on the process of issuing materials within public procurement, beginning with the meaning of issuing materials as the controlled distribution of goods to various departments or users. It explained how requisitioning serves as the formal request mechanism for obtaining materials, ensuring proper authorization and accountability. The chapter then identified the various sources from which material requisitions can originate, highlighting the importance of clear communication between departments. Different methods of issuing materials were examined, emphasizing the need for efficiency and accuracy in handling stock. The procedure for issuing materials detailed step-by-step actions to ensure proper documentation and control. Finally, the chapter covered the essential documents used in issuing materials, which serve to record transactions and maintain transparency in the procurement cycle. Together, these topics provide a comprehensive understanding of managing goods after procurement to support organizational operations.