ABU DHABI,
The Federal Government’s Inventory Management Policy and Procedures, recently approved by the UAE Cabinet, aim to document and standardise inventory procedures across federal entities and define the responsibilities of employees involved in inventory management and implementation.
To enhance governance and control over inventory balances, regulatory policies and procedures have been established to ensure that inventory operations are conducted accurately and systematically. This framework aims to verify the integrity and accuracy of recorded inventory balances against actual physical inventory.
Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance, highlighted that the ministry has undertaken a comprehensive review of inventory policies and procedures for the Federal Government to establish robust policies aligned with best practices.
He emphasised that the updated inventory management policies are designed to regulate and enhance the efficiency of resource management within the Federal Government.
“These policies ensure the effective use of resources by defining clear procedures for inventory management, including proper planning to meet the Federal Government’s needs and managing subsequent processes for receiving and disbursing inventory,” Al Khoori said.
In line with the Ministry of Finance’s commitment to aligning inventory policies and procedures with recent updates in federal operations, particularly the transition to accrual accounting and developments in procurement policies, adjustments have been made to develop and update the Federal Government’s inventory management guidelines. This is to ensure full compliance with accrual accounting principles, enabling accurate financial reporting and adherence to accounting standards.
Additionally, the updated provisions address all Federal Government requirements for warehouse management, in accordance with leading best practices.
The updated inventory management policies in the Federal Government address various aspects of inventory, including the types and classification methods based on use case, stock status, strategy, and the average speed of movement.
These policies also feature provisions for warehouse management, beginning with identifying the types of storage facilities within the federal government and establishing rules and considerations for warehouse design. This is to ensure the efficiency and effectiveness of storage operations, and enhance the safety of warehouses and their employees by specifying safety and prevention guidelines, and correct storage methods.
Additionally, the “Inventory Management Policies” delineate the key roles and responsibilities of stakeholders in federal entities through a detailed matrix of powers and responsibilities outlined in the policies to ensure efficient and effective inventory management.
