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Appendix A: Audit Objectives and CriteriaAudit of Supply Inventory Management

Objectives Criteria

Objective 1:

Ensure that effective governance mechanisms are in place to support the management of supply inventory.

 1.1 Verify that a material management framework is in place at EC, complete with processes, systems and controls that include oversight, planning and reporting mechanisms.
1.2 Verify that a material lifecycle management strategy is in place at EC.
1.3 Verify that the training modules and job descriptions of relevant employees include their obligations regarding the management of supply inventory and determine whether specific objectives in this regard are included in performance reviews.

Objective 2:

Ensure that the internal control over supply inventory counts is effective, achieves operational results, and demonstrates good stewardship and value for money.

 2.1 Verify that the physical count results are representative of the quantities recorded in the SMS.
2.2 Verify that the inventory system is updated in a timely manner in conjunction with the processes in place.
2.3 Verify the accuracy of item classification and the frequency of physical inventory counts.
2.4 Verify the location of supply inventory.

Objective 3:

Ensure that material management decisions are based on risk management practices, such as acquisition, lifecycle costing, and divestment.

 3.1 Verify that electoral material acquisition decisions are made in an integrated manner, taking into account operational requirements, material usage, risk, investment and divestment.
3.2 Verify that EC assigns a lifespan to all electoral materials and evaluates overall lifecycle costs.

Objective 4:

Ensure that effective oversight mechanisms are in place to support the management of supply inventory.

 4.1 Verify that the Distribution Centre and the electoral material management team have effective inventory control mechanisms for supplies to ensure sound management practices for the control and protection of assets.