Purpose
The purpose of this guidance is to clarify the process for accessing CRS and non CRS Global prepositioned emergency relief items and general billing mechanism.
Background
The United Nations Humanitarian Response Depot (UNHRD) manages prepositioned emergency stocks for various UN agencies, government donors, and NGOs. UNHRD currently have six warehouse hubs located in Dubai (UAE), Accra (Ghana), Brindisi (Italy), Las Palmas (Spain), Subang (Malaysia) and Panama City (Panama). In addition to storage management, the UNHRD proposes services such as procurement, loan from other agencies, and shipping coordination.
Through CRS’ Humanitarian Response Department (HRD), CRS has emergency stock warehoused with UNHRD in Dubai and Panama. CRS’ existing emergency stock information as well as stock information from all UNHRD partners can be accessed at UNHRD site. Current CRS stocks are in a state of constant flux, so please contact the CRS UNHRD focal point for stock items, locations of those items and quantities.
Emergency relief items are also prepositioned by a few country programs, namely: Philippines; Madagascar; Haiti, and Kenya (April 2018).
The following are the steps required to access and replenish CRS’ prepositioned stock held at UNHRD.
Acronyms
UNHRD: United Nations Humanitarian Response Depot
PI: Pro format Invoice (equivalent to a Purchase Order)
MCR: Management Cost Recovery
HRD: Humanitarian Response Department
Process
Requisition Process
Note: Using UNHRD services / accessing prepositioned relief items does not waive the CP from requirements to follow CP Authorization chart
- All requests for information, including cost, loans, purchases, delivery costs and time frame should be addressed to CRS’ UNHRD focal point.
- Requests for quotations for goods and services should contain the following:
a) Detailed description of the goods/services requested
b) Quantity of the goods / services required.
c) Destination – address and name of consignee.
d) Delivery terms – According to 2010 Incoterms (Supply Chain Management Handbook / Section 5.IV)
e) Date good and services are required.
- CRS’s UNHRD focal point will communicate the request to the UNHRD.
- The UNHRD will issue a PI to the HRD focal point (CRS’ UNHRD Focal point) with an estimate of the costs for the services.
The CRS CP representative will approve or reject the offer and revert back to CRS’ UNHRD focal point
Transportation
While UNHRD is able to provide quote for transportation (Sea / Air Freight / land); HRD, on the behalf of the CP, will also seek transport quote from private transporters in order to meet cost effectiveness and best delivery timeline.
CRS Commitment Process
Upon receiving the approval from the CP the HRD Technical Director – Donal Reilly or HRD Vice President – Jennifer Poidatz will sign the PI and a scanned copy will be send by the CRS UNHRD focal point to UNHRD authorizing the services outlined in the PI.
UNHRD invoicing can take time and the CP must ensure that Accounting for Commitment (as per POL-FIN-COM-037) due to UNHRD is properly recorded into CP General Ledger. The signed PI serves as a PO.
Shipping
In addition to the above information (RFQ Information Pt #2) the following information is required to ensure the timely delivery of goods from the UNHRD;
- Cargo delivery address
- Shipping documents delivery address. (Shipping Agent or CRS CP Office)
- Point of contact at destination to be included in the packing list.
- Any import authorization or agreement established with the recipient country authorities for tax exemption or any other import fees.
- Any certificate needed for import procedures in the recipient country or for transport purpose (e.g. Certificate of origin/IATA Certificate for dangerous goods).
- Any other particular requirement.
Receiving
The CP is responsible for all clearance and handling at the port of destination. The Consignee will need to contract the services of a shipping agent to handle the port (Sea / Air) clearing process. An exception to this is a large scale humanitarian response when the UN or Logistic Cluster takes on to provide logistical support in the affected country.
Stock Valuation
CRS’ UNHRD focal point will communicate the unit cost of each items sent. The CP will record receipt in the General Ledger according to the Accounting for Purchased Inventoriable Goods Procedure (under CP cost center (DSPN) / ACC 1415) as follow XXXX-ZZZ-YYYY.1415 with XXXX refers to Donor Source Number, ZZZ refers to CP country code and YYYY refers to project number.
Note: While in stock, items are assets. They can be booked in the inventory under a DSPN XXXX and distributed under another DSPN YYYY. It is when items are distributed or transferred to a sub-recipient that they are charged as an expense under the DSPN used to record the items distributed.
Other Expenses (Per PI)
CPs will absorb the cost of (as indicated on the PI):
- Transport from UNHRD warehouse to their location
- Handling charges occurring during dispatch
- Seven percent (7%) of MCR applied by UNHRD on all services provided by UNHRD.
Stock Replenishment
Note: Delivery incoterms for procured prepositioned items in Dubai UNHRD warehouse are Delivery at Place (DAP)
- Prepositioned items are strategic and must be replaced as soon as possible.
- CRS’ UNHRD focal point will initiate the requisition to be handled by CRS HQ using the DSPN under which the items are booked: Dubai (1050.906.0013) or Panama (1401.906.8777).
- If there is a desire to immediately replenish stocks prior to use (prior to revenue being recognized) then OverOps must authorize the expenditure for the procurement.
- The purchase of replenishment stock, including the cost to replenish stock at a higher cost than the delivered cost, requires approved budgeted resources. These resources can include prepositioned stock budget resources, capital budget resources, or discretionary expense resources.
For Example:
a) Where the use is for a discretionary activity or where the transferred stocks are not fully used (as such do not fully generate sufficient revenue recognition to cover the replenishment costs) the “asset holder” must seek additional funding either from other existing discretionary budget (from the region or from OverOps reserves);
b) To cover higher price difference between delivered item cost and replenished item cost, HRD will need to have approval for capital budget resources (Cash) to pay for the price difference (asset capital increase).
The CP will bear the cost of transportation of the replacement items. This cost can only be charged to CP’s discretionary funding (1550) or emergency restricted funding as applicable. Donors shall not be charged for such transportation.
Note: In any case, CRS should not charge transport costs for replenishment to donors given they already paid for transport when goods were shipped from UNHRD stocks.
Billing
UNHRD will send invoices (Debit Note- DN) to CRS’s UNHRD focal point, based on the approved PI. After verification, CRS’s UNHRD focal point will follow the Payment Process to UNHRD Step.
In some instances, the CP will contract a third party directly for transport. In this scenario, the step K shall be followed.
Payment Process to UNHRD (To be completed within 2 weeks)
- CRS’ UNHRD focal point prepares payment request within a maximum of 1 week time from the date the DN is received.
- Payment request (along with supporting documentation) is approved by who has budget authority according to agency approval matrix thresholds.
a) If it is a CP Budget,
i. CRS’ UNHRD focal point sends the approved Payment Request with all required documentations to CR and copy CP’s FM and HRD Operations TA
ii. CP FM will prepare wire transfer for CR approval and keep HRD Operations TA in CC for follow up.
iii. CP FM will submit the wire transfer to [email protected] and keep HRD Operations TA in CC for follow up.
b) If it is an HRD Budget,
i. CRS’s UNHRD focal point sends the approved Payment Request with all required documentations to whom has budget authority according to agency approval matrix thresholds and copy HRD Admin Assistant
ii) HRD Admin Assistant will prepare wire transfer for HRD’ members that have it authorized ( HRD Operations STA / HRD Technical Director / HRD Vice President ); and CRS’s UNHRD focal point.
iii. HRD Admin Assistant will submit the Wire Transfer to [email protected] and CC CRS’s UNHRD focal point
Payment Process to Transport (To be completed within 2 weeks)
- CP receive transporter invoice, verify it, and prepare payment request within a maximum of 1 weeks’ time from the date the Invoice is received.
- Payment request (along with supporting documentation) is approved by who has budget authority according to agency approval matrix thresholds. The HRD Operations TA is kept informed on the progress of the approval (CC or email).
- CP’s FM will prepare WT for CR approval and keep the HRD Operations TA informed on the progress of the approval (CC or email) for follow up.
- CP FM submits the Wire Transfer to [email protected] and keep HRD Operations TA in CC for follow up.
Borrow / Purchase / Loan Options with UNHRD
It is possible, through UNHRD, to borrow stock and/or purchase goods. CRS can also loan its own stock.
1. Borrowing Stock Through UNHRD
a) The same process described for CRS’ prepositioned stock applies when stocks are borrowed at UNHRD.
b) UNHRD will contact stock owner to secure necessary authorization.
c) Borrowing agency is responsible to replace the items with same specifications and quantities and at the same location it originated. UNHRD generally takes the lead to purchase items that have been borrowed. Stock owner agency would have to review and approve the specification before the purchase order is issued.
2. Purchase Through UNHRD
a) The same process described for CRS’ prepositioned stock applies when stocks are purchased by UNHRD.
b) CPs will be charged all cost associated with the purchase, like a normal purchase process. UNHRD is doing all the purchase and CRS’ UNHRD focal point coordinates between CP, UNHRD and HRD (Director and Vice-President).
3. Loan Through UNHRD
a) In such situation, CRS HRD is the stock Owner.
b) UNHRD will contact stock owner to secure necessary authorization.
c) Borrowing agency is responsible to replace the items with same specifications and quantities and at the same location it originated. UNHRD generally takes the lead to purchase items that have been borrowed. The stock owner agency would have to review and approve the specification before the purchase order is issued.